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HomeMy WebLinkAboutAgenda - 12-15-2015 - 4a - Presentation of Comprehensive Annual Financial Report for FYE 6/30/15 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 15, 2015 Action Agenda Item No. 4-a SUBJECT: Presentation of Comprehensive Annual Financial Report for FYE 6/30/2015 DEPARTMENT: Finance and Administrative PUBLIC HEARING: (YIN) No Services ATTACHMENT(S): INFORMATION CONTACT: 1. GFOA Award for Financial Reporting Gary Donaldson, (919) 245-2453 2. PowerPoint Presentation-Martin Paul Laughton, (919) 245-2152 Starnes & Associates 3. FY 2015 Management/Compliance and Opinion Letters 4. A Report to Our Residents PREVIOUSLY PROVIDED UNDER SEPARATE COVER: 5. Draft Comprehensive Annual Financial Report, FYE June 30, 2015 PURPOSE: To receive the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015. BACKGROUND: The CAFR reports on all financial activity of the County for the fiscal year July 1, 2014 through June 30, 2015. Martin Starnes and Associates, a firm of Certified Public Accountants, audited the financial statements. The financial statements and audit are required by Chapter 159-34 of the North Carolina General Statutes. The County prepares a Comprehensive Annual Financial Report (CAFR) that meets the standards set by the Government Finance Officers Association (GFOA). The CAFR is submitted to the GFOA in order to be awarded the Certificate of Achievement for Excellence in Financial Reporting. Orange County has received this award for thirty consecutive fiscal years. The financial report for the Orange County SportsPlex, as required under the management contract, is included in the County's CAFR. The audit results for the fiscal year ended June 30, 2015 indicates a strong financial position for Orange County. The County received an unqualified (clean) audit opinion on the financial statements received from the audit. The Chief Financial Officer and representatives of Martin Starnes and Associates will cover highlights of the report and answer any questions. FINANCIAL IMPACT: The financial report indicates a strong financial position for Orange County. The County Board policy is to maintain the unassigned fund balance at 17% of General 2 Fund expenditures. At the end of FY2014-15 the unassigned fund balance was 18.5% of General Fund expenditures, or $2.8 million in excess of the Board policy. The unassigned fund balance policy and target levels enable the County to prevail through uncertain economic and financial periods. RECOMMENDATION(S): The Manager recommends that the Board receive this Report as information. 3 Attachment 1 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to -range County North Carolina For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2014 Executive Director/CEO 4 Certificate of Achievement For Excellence in Financial Reporting Summary of Grading Name of Unit: Orange County Fiscal Year of Report FY2014 Report# 1,549.00 The Certificate of Achievement Program Special Review Committee (SRC) has completed its review of your comprehensive annual financial report(CAFR). Listed below are the grading categories used and a summary of the SRC's evaluation of your CAFR. The detailed-comments and suggestions for reporting improvements on the attached listing are grouped under similar grading categories. Any category which received a grade of"Needs Significant Improvement" indicates an area of particular concern to the SRC and the related comments and suggestions for improvement in this category should be given special attention. An indication is provided on the list by the specific comments(s) or category(ies) that were the cause of receiving this grade. For each item, the notation also states whether it is 1)the basis or part of the basis for the CAFR not receiving the Certificate of Achievement, 2) a serious deficiency which will almost certainly preclude the awarding of the Certificate of Achievement if it is not corrected in your next CAFR, or 3) a deficiency,that if not corrected in future CAFRs, could result in the Certificate of Achievement not being awarded. Grading Category Grade Cover,table of contents, and formatting Proficient Introductory section Proficient Report of the independent auditor Proficient Management's discussion and analysis (MD&A) Proficient Basic financial statements(preliminary considerations) Proficient Government-wide financial statements Proficient Fund financial statements(general considerations) Proficient Governmental fund financial statements Proficient Proprietary fund financial statements Proficient Fiduciary fund financial statements Proficient Summary of significant accounting policies(SSAP) Proficient Note disclosure (other than the SSAP and pension-related disclosures) Proficient Pension-related note disclosures Proficient Required supplementary information(RSI) Proficient Combining and individual fund information and other supplementary information Proficient Statistical section Proficient Other considerations Proficient MART I N * S TARN E S & ASSOCIATES , CPAs . P. A . Orange County 2015 Audited Financial Statements 6 Audit Highlights ❑ Unmodified opinion ❑ Implementation of GASB68 2 MARTIN•STARNES & A55ociniES. CPAs. P.A. 7 Budget vs . Actual General Fund Budget Actual Variance Revenues $ 196,316,799 $ 201,390,558 $ 5,073,759 Expenditures 200,705,722 192M78,545 545 8 Other Financing Sources (Uses) Bond Refunding - 60500 60500 Trans fers In L057AO L - Transfer Out (8,080fi99) (8,080fi99) - Appropriated Fund Balance II,412,462 - (11 ,412,462) Net Change in Fund Balance $ - $ 2,893,474 $ 2,893,474 3 MARTIN•STARNES &Assocm FS, CPAs, P.A. 8 Transfers out Summary Tranfers from the General Fund School Capital Improvements Fund $ 4,727,236 County Capital Improvements Fund 460,240 Nonmaj or governmental funds 516,480 Enterprise Funds: Major Solid Waste Landfill 1 ,856,543 Major SportsPlex 376,450 Nonmajor Enterprise Fund 143,750 Total transfers out $ 8,080,699 4 MARTIN•STARNES &ASSOCIATES, CPAs, P.A. 9 Transfers in Summary Tranfers to the General Fund Nonmaj or governmental funds $ 1 ,052,600 County Capital Improvements Fund 4,560 Total transfers in $ 1 ,057, 160 5 MARTIN•STARNES &ASSOCIATES, CPAs, P.A. 10 Tax Collection Percentages 100.00 %99.08° ° 98.78% °%0 97.50% 95.00% 132015 ■ 2014 92.50% 90.00°x° 2015 2014 6 MARTIN•STARKES &AssociATES, CPAs, P.A. 11 Fund Balance Position- General Fund 2015 2014 Total Fund Balance $ 65 ,019 , 5 81 $ 62, 114 ,947 Non spendable (20 ,306) (29 ,242) Stabilization by St at e Statute ( 11 ,255 , 821 ) ( 12, 102 ,492) Available Fund Balance 53 ,743 ,454 49,983 ,213 Committed (7, 543 , 841 ) (6 ,001 ,641 ) Assigned ( 10 ,650 ,770) ( 10,068 ,343 ) Unassigned $ 35 , 548 , 843 $ 33 ,913 ,229 7 MARTIN - STAFANES & ASSOCIATES, CPAs, P.A. 12 Unassigned Fund Balance as a Percent of Expenditure s General Fund 25% 18.5% 18.9% 20% 15% ❑ 2015 10% W 2014 5% 0% 2015 2014 8 MARTIN•STARNES & ASSOCIATES, CPAS, P.A. 13 Major Funds SportsPlex Solid Waste Fund Fund Total Operating Revenues $3134557 $ 5 173 915 Total Operating Expenses (3 , 112 ,253 ) Non-operating ( 103 , 112) 1 , 15 5 ,000 Other Financing Sources 376 ,450 1 , 856 ,543 Beginning Net Position 3 ,275 , 136 6 ,686 ,741 Ending Net Position $3 , 570 ,778 $ 4 ,014 ,256 9 MARTIN •STAMES & AsSOC[ATES, CPAs, P.A. Orange County MART I Np S TARN E S & ASSOCIATES , CPAs , P.A. 10 Attachment 3 15 ARTIN , STARVES & AssaCIATES, CPAs, P.A. "A Prgfessioncal A.ssociarion of ccertifred Public 4ccoientetnts and hfaneagernent Consultants" Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit of Financial Statements Performed In Accordance With Government Auditing Standards Independent Auditor's Report To the Board of Commissioners Orange County,North Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Orange County, North Carolina, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated December 10,2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered Orange County's internal control over financial reporting (internal control)to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Orange County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the County's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 730 13th Avenue Drive SE♦Hickory,North Carolina 28602♦Phone 828-327-2727♦Fax 828-328-2324 13 South Center Street♦Taylorsville,North Carolina 28681 ♦Phone 828-632-9025♦Fax 828-632-9085 Toll Free Both Locations 1-800-948-0585♦Website:www.martinstames.com 16 ARTIN , STARVES & AssaCIATES, CPAs, P.A. "A Prgfessio"al Association of C cer tifred Public Accoientetnts and hfaneagernent Consultants" Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore,material weaknesses or significant deficiencies may exist that were not identified. We did identified certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs as items 2015-001 and 2015- 002,that we consider to be a material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether Orange County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements,non-compliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non-compliance or other matter that is required to be reported under Government Auditing Standards. Orange County's Response to Finding Orange County's responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. The County's responses are not subjected to the auditing procedures applied in the audit of the financial statements, and accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. Eate...✓�,,,�.,� eise,7m� CPQs, )0k. Martin Starnes &Associates, CPAs, P.A. Hickory,NC December 10, 2015 730 13th Avenue Drive SE♦Hickory,North Carolina 28602♦Phone 828-327-2727♦Fax 828-328-2324 13 South Center Street♦Taylorsville,North Carolina 28681 ♦Phone 828-632-9025♦Fax 828-632-9085 Toll Free Both Locations 1-800-948-0585♦Website:www.martinstames.com 17 ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30,2015 2. Findings Related to the Audit of the Basic Financial Statements Finding 2015-001: Material Adjusting Journal Entries Criteria: Management should have a system in place to reduce the likelihood of errors in financial reporting. Condition: A significant audit adjustment is a proposed correction of the basic financial statements that, in our judgment, may not have been detected except through our auditing procedures. The existence of such material adjustments indicated that the County's system of controls did not detect and prevent such errors. We have provided management with a report of these adjustments. Context: The County did not accurately record their debt refunding entries. Effect: Financial reports used for budget monitoring throughout the year do not properly reflect the account balances. Recommendation: Management should examine the adjustments required as a result of our audit and assess the cost/benefit of improving the internal control system to prevent the adjustments in the future,given the County's available resources. Name of Contact Person: Gary Donaldson, Chief Finance Officer Corrective Action: Management will examine controls in place to see if they can be strengthened and given available resources. In the areas where the cost/benefit does not justify improving the control system,management will exercise due caution in performing its oversight function. Finding 2015-002: Prior Period Adjustment Criteria: Management should have a system in place to reduce the likelihood of errors in financial reporting. Condition: A prior period adjustment is required to correct material errors that occurred in periods prior to the current fiscal year under audit. The necessity of a prior period adjustment indicates that the County's system of controls did not detect and prevent a material error in financial reporting. Context: The County discovered an error in how the OPEB liability was reported. Effect: The County was understating their OPEB liability. Cause: Contributions were not being made to an irrevocable trust and should not have been used to reduce the liability. 18 ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30,2015 2. Findings Related to the Audit of the Basic Financial Statements (Continued) Finding 2015-002: Prior Period Adjustment(Continued) Recommendation: Care should be taken to ensure that the total contributions are reported correctly. Name of Contact Person: Gary Donaldson, Chief Finance Officer Views of Responsible Officials and Planned Corrective Actions: Management is aware of the error that occurred and will implement controls to catch any amounts that should not be considered contributions. 3. Findings and Questioned Costs Related to the Audit of Federal Awards Finding 2015-003: Housing Voucher Cluster Criteria: Management should have a system in place to reduce the likelihood of errors in financial reporting and compliance with grant reporting requirements. Condition: The County has not submitted the GAAP-based audited financial information as required by the Uniform Financial Reporting Standards (24 CFR section 5.801) by the required March 31St deadline. The failure to submit on a timely basis is a violation of reporting requirements as stated in the Housing Voucher Cluster compliance supplement. Context: The County did not adhere to the reporting requirements of HUD. Effect: Failure to file the HUD required audited financial information is a violation of reporting requirements as stated by the Uniform Financial Reporting Standards. Cause: Inadequate monitoring of the required reporting requirements based on the terms of the County's grant terms with HUD. Recommendation: The County should submit the unaudited and audited HUD required annual financial information by the March 31 deadline. Contact Person: Gary Donaldson, Chief Finance Officer Views of Responsible Officials and Planned Corrective Actions: Management concurs with finding and will ensure that the HUD required annual financial information is filed before the March 31st annual deadline. In the past, the filing of this report was the responsibility of the Department of Housing, Human Rights, and Community Development Department. Due to the finding, all future fillings will be completed by the Department of Finance and Administrative Services to ensure compliance. The above finding has been corrected by the Department of Finance and Administrative Services staff. 19 ORANGE COUNTY, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30,2015 4. Findings and Questioned Costs Related to the Audit of State Awards None 20 ORANGE COUNTY, NORTH CAROLINA SUMMARY SCHEDULE OF PRIOR YEAR'S AUDIT FINDINGS FOR THE YEAR ENDED JUNE 30,2015 2014-001 repeated as finding 2015-003 21 MARTIN STARNES Jsso I TES , CPAs , P.A. "A Professional Association gfC'ertified Public Accountants mid.i1anagement Consultants Independent Auditor's Report To the Board of Commissioners Orange County,North Carolina Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Orange County,North Carolina,as of and for the year ended June 30,2015, and the related notes to the financial statements, which collectively comprise Orange County's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of the Orange County ABC Board were not audited in accordance with Government Auditing Standards. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements. 730 13th Avenue Drive SE♦Hickory,North Carolina 28602♦Phone 828-327-2727♦Fax 828-328-2324 13 South Center Street♦Taylorsville,North Carolina 28681 ♦Phone 828-632-9025♦Fax 828-632-9085 Toll Free Both Locations 1-800-948-0585♦Website:www.martinstames.com 22 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Orange County, North Carolina, as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis, Law Enforcement Officers' Special Separation Allowance and Other Post- Employment Benefits Schedules of Funding Progress and Employer Contributions, the Local Government Employees' Retirement System Schedules of the County's Proportionate Share of the Net Pension Asset and County Contributions, and the Register of Deeds' Supplemental Pension Fund Schedules of the County's Proportionate Share of the Net Pension Asset and Schedule of County Contributions be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements,is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Orange County, North Carolina's basic financial statements. The introductory information, combining and individual fund financial statements, budgetary schedules, supplemental ad valorem tax schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements, budgetary schedules, and the supplemental ad valorem tax schedules are the responsibility of management and were derived from, and relate directly to, the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures; including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements, or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements, budgetary schedules, and supplemental ad valorem tax schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 23 The introductory information and the statistical section have not been subjected to the auditing procedures applied in the audit of basic financial statements and, accordingly, we do not express an opinion or provide assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2015 on our consideration of Orange County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Orange County's internal control over financial reporting and compliance. R.�7`�✓ 54VX4, E QY-Wci- d I epos, Martin Starnes &Associates, CPAs, P.A. Hickory,NC December 10, 2015 Attachment 4 24 200 S. Cameron Street �� Founded in Hillsborough, NC 1752 919.732.8181 ORANGE COUNTY in the heart of orangecountync.gov NORTH CAROLINA North Carolina REPORT • OUR RESIDENTS total FISCAL YEAR 2014-15 July 1, 2014 —June 30, 2015 ORANGE COUNTY has 938 full-time equivalent positions (excluding education).Property taxes generate$145 million,plus state aid and other funds •approximately $21 • and$192 •n in expendit COUNTY • • •• ' : �� • • • • • • 1 • • GOVERNMENT COUNTY SERVICES METRICS . . Orange County has 133,801 residents EDUCATION per the 2010 US Census and constitutes Average Daily Membership(Budgeted) 19,908 20,202 401 square miles. The County operates Per Pupil Expense $3,269 $3,571 on the Commissioner-Manager form of PUBLIC SAFETY government.Policy making and legislative a Requests for EMS Service 12,554 13,810 authority are vested in a seven member Board of County Commissioners. The EMS Response Time(Average) 8:53 9:16 Commissioners are elected on a staggered Fire Inspections 379 400 basis for the term of four years. The Daily Inmate Population(Average) 131 100 County Manager is appointed by the Number of Inmate Admissions 3,028 2,734 Board of County Commissioners. ANIMAL SERVICES Orange County is committed to Number of Animals Sheltered 3,258 3,246 providing excellent customer service. Number of Low Cost Spay/Neuters 465 433 Each department is responsible for Total Number of Pet Licenses 20,833 19,367 providing services to the residents and BUILDING/INSPECTIONS businesses within the County. There are 25 departments(excluding education)that Building Permits Issued 666 815 operate within the County,providing law Building,Plumbing,Mechanical&Electrical Inspections 10,688 14,900 enforcement,emergency medical services, HEALTH&SOCIAL SERVICES fire protection, solid waste and recycling #Families Receiving Daycare 700 685 services, parks and recreation, codes and Medicaid Cases 13,575 12,960 building inspection, Board of Elections, Dental Patient Visits 5,279 6,131 health and dental services, child support enforcement and social services. There Primary Care Visits 979 1,503 are two school districts within Orange Family Planning Clients Served 1,317 1,812 County, the Orange County Schools LIBRARY SERVICES Board of Education and the Chapel Library Materials Circulated 422,265 442,367 Hill-Carrboro City Schools Board of Volumes of Library Books 103,259 111,421 Education. Both school districts operate PARKS&RECREATION independently of Orange County. The County also hosts a Durham Technical Park Acreage Managed 581 733 Community College satellite campus. Program Registrations 5,348 5,560 25 FINANCES:THE COUNTY5S AND EXPENDITURES GENERAL FUND REVENUES Licenses and Permits Investment Intergovernmental 0.16% Earnings CATEGORY 10.23% 0.01/\ REVENUES BY \ Miscellaneous Property Tax $145,833,869 Charges for 0.49% Services Sales Tax 21,685,840 5.93 Charges for Services 11,944,185 Sales Tax Intergovernmental 20,594,979 10.77% Licenses and Permits 331,510 Investment Earnings 15,051 Property Tax 72.41% Miscellaneous 985,124 TOTAL REVENUES $201,390,558 Please note:miscellaneous revenues includes donations,rent and sales of fixed assets GENERAL FUND EXPENDITURES Governing and General Management Services 6.79% 3.95% EXPENDITURES . FUNCTION County Debt Community and Service Environment Governing and Management $13,050,437 5.52% 3.43% General Services 7,589,861 Culture and Recreation Community and Environment 6,591,893 1.38% Human Human Services 37,008,858 P Services Safety 9.28% Education 93,635,266 10.90% Public Safety 20,945,780 Culture and Recreation 2,647,079 County Debt Service 10,609,371 TOTAL EXPENDITURES $192,078,545 Please note.education includes operating expenses&school debt service 26 FINANCIAL METRICS METRIC FY2013-14 FY2014-15 METRIC CALCULATION Net Direct Long-Term Debt 1.3% 1.3% County long-term debt is divided by the county's tax base Assessed Valuation Annual Debt Service 11.9% 12.6% County general fund debt service is divided by general fund revenues General Fund Revenues Fixed Costs 19.6% 19.8% County debt service, utilities,fuel,and benefits is divided by general General Fund Expenditures fund expenditures Annual Capital Outlay 4.0% 3.0% County recurring capital,county capital,and school capital is divided General Fund Expenditures by general fund expenditures Residential Market Value 84.0% 84.0% County residential market value is divided by the county's total Total Market Value market value Property Tax Revenues $143 million $145 million County general fund property tax revenues unadjusted for inflation (Current Dollars) Property Tax Revenues $140 million $145 million County general fund property tax revenues adjusted for inflation(CPI); (Real Dollars) *2015 CPI is an estimate from the Bureau of Labor Statistics Elastic Revenues 10.5% 11.2% County general fund sales tax revenue and construction permit General Fund Revenues revenues divided by general fund revenues Unassigned General Fund Balance 18.9% 18.5% County unassigned general fund balance divided by general fund General Fund Expenditures expenditures *Source:Orange County,NC FY2015 and FY2074 Comprehensive Annual Financial Reports,Statistical Sections ECONOMIC METRICS UNEMPLOYMENT RATE IN ORANGE COUNTY,N( PRINCIPAL TAXPAYERS July 1,2014-June 30,2015 PERCENTAGE OF TYPE OF ASSESSED TOTAL ASSESSED 5.4 TAXPAYERS BUSINESS VALUATION VALUATION 5.0 Duke Energy Public Utility $110,846,022 0.67% C 4.6 Piedmont Electric 4.2 Membership Public Utility 55,630,473 0.33% 3.8 Northwestern Mutual Apartment Jul 14 Sept 14 110V 14 lan 5 Mar I Life Insurance Co Rental 38,627,273 0.23% *Source:US Bureau of Labor Statistics Corium LLC Office Rental 36,433,531 0.22% East 54 Office/Retail 35,239,900 0.21% PRINCIPAL EMPLOYERS Madison University Mall LLC Retail 35,174,472 0.21% #EMPLOYEES EMPLOYER ACC GF III Chapel 17,819 UNC-Chapel Hill Ridge/View LLC Condos 34,214,712 0.21% 10,262 UNC Hospitals Europa Center LLC Hotel 27,816,248 0.17% 2,043 Chapel Hill-Carrboro City Schools Apartments 1,270 Orange County Schools Granville Towers LLC Rental 27,414,585 0.16% 938 Orange County Government SMA Greenbridge Residential 714 Town of Chapel Hill Owner LLC Condos 27,371,000 0.16% 698 Blue Cross Blue Shield of NC TOTAL $428,768,216 2.57% 27 REPORT TO OUR COUNTY PROFILE Orange County, NC is located in the north-central portion businesses.Manufacturing and agriculture are smaller portions of the State on the Piedmont Plateau. Bisected from east to of the County's economy. The County enjoys a consistently west by Interstate 85, the County lies approximately midway low unemployment rate. The University of North Carolina at between the cities of Atlanta, Georgia and Washington, D.C. Chapel Hill and University Hospital in the Towns of Chapel There are four municipalities in the County: the Towns Hill and Hillsborough have a reputation for excellence in the educational and medical fields. Both of these higher education of Chapel Hill and Carrboro in the southeastern part of institutions provide significant teaching and research programs. the County and the Town of Hillsborough and the City of Mebane in the central corridor of the County along Interstate Orange County is a place of residence for many technical, 85 and Interstate 40. The Town of Chapel Hill is the largest professional and executive individuals who work in the Research municipality in the County and is the home of the University Triangle Park (the "Park") and neighboring cities of Durham, of North Carolina at Chapel Hill. The Town of Hillsborough Raleigh,and Burlington.The Park, located 10 miles east of the is the County seat. County, contains nearly 7,000 acres of land which have been reserved for research and research-oriented manufacturing.The The County is part of the Raleigh-Durham-Chapel Hill Park is located between three major universities, the University Combined Statistical Area, which also includes the Research of North Carolina at Chapel Hill, Duke University in Durham Triangle Park, a major complex of research and research- and North Carolina State University in Raleigh, and is home to oriented manufacturing facilities. Interstate 40 connects the more than 200 companies, including IBM, G1axoSmithKline, County directly with the Research Triangle Park and Raleigh- Durham International Airport. The City of Mebane, home of Fidelity Investments, U.S. Environmental Protection Agency, most of the County's major manufacturing employers, is on Lenovo, Syngenta, Credit Suisse, RTI International and Cisco. The companies and organizations in the Park employ more the westernmost boundary of the County. A major portion of than 49,000 full-time equivalent employees. The Park has the City of Mebane lies in neighboring Alamance County. The received over $1 billion in investments the past 5 years. Since area north of Interstate 85 in Orange County is mostly rural, with a mixture of farming, residential and light industrial and the Park opened, there have been 3,256 patents granted and commercial uses. 1,970 trademarks received.There have also been 245 company start-ups since the Park started. Due to its close proximity to The County is approximately 401 square miles in area, of Orange County and the fact that many of the Park's employees which approximately 177 square miles are unincorporated, reside in the County, the impact of the Park on the County's 39 square miles are farmland, 132 square miles are forested, economy is significant. and 53 square miles are urbanized. The County's economy is characterized by a high degree of institutional and public Special Acknowledgment:P.Laughton,P.Moore and Community sector activity, plus office, commercial, and service-oriented Relations and Tourism Department BOARD OF COUNTY COMMISSIONERS Earl McKee, Chair Mark Dorosin,Vice Chair Mia Day Burroughs Ki Barry Jacobs Bernadette Pelissier t Renee Price J Penny Rich