Citizens Report About the Collin County Citizens Report The Office

Citizens Report About the Collin County Citizens Report The Office of County Auditor is pleased to present its first annual Collin County Citizens Report, using the financial results for the fiscal year (FY) ended September 30, 2007. This report provides an overview of the County’s financial condition and a brief analysis of where the County revenues come from and where those dollars are spent. It also provides an outline of trends in the local economy. Most of the information in this report is taken from the financial information appearing in the FY 2007 Comprehensive Annual Financial Report. (CAFR). The CAFR is a more detailed and complete financial presentation prepared in conformance with Generally Accepted Accounting Principles (GAAP) and has been audited by the County’s independent auditors, receiving an unqualified opinion. While the financial data in the Collin County Citizens Report conformed with GAAP, the statistical, economic and demographic data are taken from various sources and are not GAAP-basis data. Both the CAFR and the Collin County Citizens Report are available for viewing at the County Auditor’s Website at http:// www.co.collin.tx.us. Collin County, Texas Fiscal Year Ended September 30, 2007 Volume 1, Issue 1 May 1, 2008 Inside this issue: Auditor’s Message County Overview Meet Your Commissioners’ Court 2 3 3 4 Gazebo at Myer’s Park Statement of Net Assets Commissioners’ Court Keith Self County Judge Phyllis Cole Commissioner, Pct 1 Jerry Hoagland Commissioner, Pct 2 Joe Jaynes Commissioner, Pct 3 Kathy Ward Commissioner, Pct 4 (named 7-7-08 to replace Commissioner Hatchell) Capital Assets and Con- 5 struction Outstanding Debt Statement of Activities Fire Truck at Farm 5 6 Museum Where The money 7 Comes From… and Goes Demographics and the Economy Spotlight on County Operations and Services Other Important 10 8 9 County Auditor—CFO Donald W. Cozad The Landing at Myer’s now open Information Special Points of Interest: Financial Highlights for FY 2007 The County prepares two sets of financial statements— each measures County finances differently. The government-wide statements present a long-term perspective of the County’s assets, liabilities and net assets, as well as its operations and activities. The fund statements provide a short-term perspective of individual fund’s assets, liabilities and fund balance. The General Fund is the chief operating fund of the County.  Myer’s Park and Event Center  Historic Courthouse on the Square - McKinney  Plano Balloon Festival  McKinney Historic Neighborhood  Farmersville - Birthplace of Medal of Honor hero Audit Murphy  Frisco Freedom Fest July 4, 2008  Red, White and Boom McKinney, July 4, 2008  At September 30, 2007 the General Fund reported an unreserved fund balance of $101.1 million, or up 7.9%. Fund revenues exceeded the final budget by $4.4 million, or 2.4%. were $119.5 million, or 16.3% less than the final budget.  Capital assets increased by $39.1 million, or 10.2%.  Long-term debt increased by $30.8 million, or 9.2%.  General  Governmental funds reported a combined ending fund balance of $357.7 million, an increase of $45 million (13%).  General Fund expenditures Page 2 Citizens Report A Message From County Auditor Don Cozad It is my pleasure to present to you the Collin County Citizens Report for fiscal year 2007. This has been another great year for Collin County from a financial perspective—both for County government and the County as a whole. The local economy has not suffered the slowdown affecting the remainder of the country. The county is continuing to grow, although indicators are at a slower pace than prior years. New and relocating businesses are flourishing as they offer services and employment to citizens of Collin County. McKinney, the County seat, lead the nation in growth for cities with a greater than 50,000 population. Since the 2000 census the City has more than doubled in size. Frisco, our westernmost city, has grown by more than 195 percent since 2000. The unemployment rate in Collin County is 3.9%, a 17% reduction from 2006. Property values continue to reflect the growth, with real property assessed value increasing by 22.1%. Property tax receipts for the fiscal year were $154.2 million, 7.86% higher than in FY06. The recent slowdown caused by the escalating credit crisis did not affect the FY2007 taxes, but may become more evident in 2008 and future years. Slower property value growth has already started in 2008. During the year ended September 30, 2007, more than 2,866 people moved into the County each month. This was only slightly higher than the influx of more than 2,586 each month in the prior year. Growth continues to create challenges in meeting the demands of residents for roads and other infrastructure needs. Planning for a corridor to cross the northern half of the County to connect Interstate 35 (N/S) to Interstate 30 (E/W) was continued with the selection of outer loop corridor route and funding of preliminary studies. Next year’s financial outlook is positive, with budgeted tax revenues of $171.1 million, an increase of 10.9% over FY07 actual revenues of $154.2 million. Actual revenues increased from $205.1 million in FY 2006 to $228.4 million FY 2007. Actual expenditures for FY 2007 total $237.8 million, with the additional amount needed to balance the budget coming from fund balance. Ongoing construction of Highway 121 is a high priority, as its connecting of McKinney with DFW International Airport will significantly improve drive times; the turnover of the Highway 121 Toll Road project to the North Texas Toll Authority is scheduled for September 1, 2008. Ever increasing health care costs for indigent residents and post-employment benefits threatens to become a major economic burden for the County. A new bond issue in July 2008 will provide funds for roads and infrastructure, facilities and open spaces. The tax rate for FY 2008 has been maintained at $0.245/$100 for the second straight year, after being reduced to that amount in FY 2006. Pressures from health care costs, demand for constituent services, and road construction to meet the growing population may eventually cause the County to have to adjust the rate. Sincerely, Please direct any questions to Mr. Donald W. Cozad, County Auditor/Chief Financial Officer, at 200 South McDonald Street, Suite 300, McKinney, TX 75069. Donald W. Cozad County Auditor RTA/CIO Next year’s financial outlook is positive, with budgeted revenues of $221.7 million, an increase of 16.9% over FY05 actual revenues of $189.5 million. Donald W. Cozad RTA/CIO County Auditor—CFO Volume 1, Issue 1 Page 3 Precinct Map—Collin County County Overview Collin County, located in northeast Texas, was organized in 1846. The county and the county seat, McKinney, owe their names to an outstanding area pioneer, Collin McKinney. The average annual rainfall is 38.0 inches and the area is 836 square miles. Located adjacent to and north of Dallas County, it is wholly within the Dallas/Fort Worth metropolitan area, which is one of the fastest growing areas in Texas. The economy is based on manufacturing, retail and wholesale sales and local agriculture. The preliminary population count for 2005, according to the North Central Texas Council of Governments, is 648,800, an increase from 615,200 in 2004. Principal cities: McKinney, the County seat, has a population of 92,500, and Plano, in the south central portion of the County, has a population of 247,000. Allen, which is between the two towns, has 66,400. Wylie, located in the southeast, has 29,800 and Frisco, in the southwest, is 73,900. Other towns include Farmersville, Princeton, Murphy, Prosper, Celina, Blue Ridge, Weston, Anna and portions of Richardson, Dallas, and Sachse. Mission Statement The Commissioners' Court approves the annual budget and all county expenditures, sets the county property tax rates, approves the tax roll and determines public works policy such as building programs and conducting elections. The court appoints most non-elected department heads and standing committees and represents the county in state and regional matters. Members of the court also serve as Trustees of the Collin County Health Care Foundation, Collin County Housing Finance Corporation, and the Collin County Substance Abuse Foundation. Meet your Commissioners’ Court After preparation of this report, but before publication, Commissioner Hatchell, long-time member of the court, passed away. His experience and knowledge will be greatly missed, as will his leadership, integrity and friendship. Keith A. Self County Judge 972/424-1460 Ext. 4623 keith.self@collincountytx.gov Phyllis Cole Precinct 1 972/424-1460 Ext. 4628 pcole@collincountytx.gov Jerry Hoagland Precinct 2 972/424-1460 Ext. 4626 jhoagland@collincountytx.gov Joe Jaynes Precinct 3 972/424-1460 Ext. 4631 jjaynes@collincountytx.gov Jack Hatchell Precinct 4 972/424-1460 Ext. 4627 Jhatchell@collincountytx.gov Volume 1, Issue 1 Page 4 Financial Summary: Statement of Net Assets The statement of net assets presents information on all of the County’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the County’s financial position is improving or deteriorating. Components of Net Assets The largest component of the County’s net assets is its investment in capital assets, less any related outstanding debt used to acquire those assets. Capital assets are not liquid, therefore by themselves they cannot be used to liquidate the County’s debt. Funds to pay those debts must be provided from other resources. The County’s investment in capital assets is about 58.1%, or $241.2 million, of the total net assets. $28.2 million, or about 6.8% of the County’s net assets are restricted. Restricted means that these resources are subject to external restrictions on their use. External restrictions can be imposed by outside agencies, donors, state statute, and laws or regulations by other governments. The restriction can also be imposed by the County itself, in order to restrict the use of those resources. The last component of net assets is unrestricted net assets. Unrestricted net assets are resources the County may use to meet its ongoing obligations to creditors, financial institutions, employees, and citizens. Total unrestricted net assets is $145.3 million, or about 35.0% of the total. This is a very healthy balance and is indicative of both good planning and outside influences, including property value increases. Page 5 Citizens Report The County’s investment in capital assets, net of accumulated depreciation at September 30, 2005, was $427.1 million, an increase of $39.1 million or about 9.1% of the total investment. Detail by type of activity and asset is displayed graphically below. Major additions for this year are:    People Soft HRMS software $1.9 million Radio system $6 million Roads/Bridges $15.2 million  New Courts Facility and Courthouse $55.1 million Jail Pod $18.3 million Juvenile Detention $4.5 million Major reductions for this year are:    Construction in Progress – net reduction of $49.3 million from assets placed in service, including roads, facilities, and bridges. In millions Capital Assets Outstanding Debt Construction in progress Land Buildings and system Infrastructure Machinery and equipment Improvements other than buildings $400 $350 $300 $250 $200 $150 $100 $50 $2003 2004 2005 2006 2007 Software Camp Voting Courthouse Perm Imp Refundings Jails Road    At September 30, 2007, the County had outstanding debt of $364.1 million, an increase of $30.8 million (9.2%). In FY 2007, the County issued $2.2 million in permanent improvement bonds, $48.2 million in road construction bonds, and $17.0 million for refunding prior debt. The County paid $34.8 million on its existing debt during the year, which included $17.0 million in refunding payments on prior debt. Page 6 Citizens Report Financial Summary: Statement of Activities This section is designed to provide a summary of the financial health and stability of the County. Information in this section should provide a general understanding of how resources available to the County are used to provide services to residents. As of September 30, 2007, the County’s revenues for the year totaled $230 million, an increase of $23 million from the previous year. Expenses totaled $173 million, a decrease of $6 million. REVENUES Program Revenues are derived directly from the program itself or from monies received from parties outside the County’s taxpayers or citizens (i.e., other governments, grantor agencies, donors, etc.) Charges for Services are revenues generated from charges to customers or applicants who purchase, use, or directly benefit from the goods, services, or privileges provided. Operating Grants and Contributions are monies received from parties outside the County and are generally restricted to one or more specific programs, either by grantor or by passthrough agency. Capital Grants and Contributions are monies received from parties outside the County and are generally restricted to purchases of equipment or other capitalized assets, including buildings or vehicles. General Revenues are taxes and other items, including earnings on investments, that are not otherwise reported as program revenues. Summary of Changes in Net Assets For the Fiscal Years Ended Septermber 30 ($ in thousands) 2007 2006 % of total Revenues Program Revenues: Charges for services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Taxes Interest earnings on investments Gain (loss) on sale of assets Miscellaneous Total revenues Expenses General administration Judicial Financial administration Legal Public facilities Equipment services Public safety Public transportation Health and welfare Culture and recreation Conservation Interest on long-term debt Total expenses Change in Net Assets Net assets as of October 1, 2006 and 2005 Net assets as of September 30 $ 40 24 1 156 9 0 230 $ 36 18 1 17.5% 10.2% 0.5% 67.8% 3.9% 0.0% 0.0% 100.0% $ 144 7 0 $ 207 $ $ 25 15 9 10 19 2 53 10 15 2 0 15 173 57 359 416 23 14 8 9 13 3 49 29 14 2 0 15 $ 179 $ 28 331 359 14.1% 8.6% 5.2% 5.5% 10.7% 1.3% 30.7% 5.6% 8.7% 0.9% 0.2% 8.4% 100.0% EXPENSES Expenses are classified by function or service. General administration includes expenses incurred for the county judge, commissioners’ court, county clerk, support services, human resources, veterans service office, ERP, nondepartmental operating and non-departmental capital replacement, administrative services, risk management, data processing, elections, records, telecommunications, and housing finance administration, Judicial represents expenses for six county courts-at-law, plus mental and probate county court, county court-at-law clerks, eight district courts, district clerk, and five justices of the peace courts. (continued) Volume 1, Issue 1 Financial administration includes expenses for the county auditor, budget director, tax assessor-collector, treasury, tax appraiser and purchasing . Legal includes expenses for the district attorney’s office and for courtappointed prosecutors, not including attorneys for indigent defendants. Public facilities represents the expenses for maintenance and operations of all public facilities, including parks, buildings, radio tower, offices, and warehouses. Equipment services includes service center expenses (maintenance of road equipment, vehicles, fleet charges, and repairs.) Page 7 Where the Money Comes From Asset sales Interest Misc Charges for services Operating grants Taxes Public safety includes fire and safety, constables, sheriff, jail operations, minimum security, medical examiner, juvenile board, corrections center, 911 addressing, holding, and homeland security. Public transportation represents the operating expenses for road and bridge maintenance, engineering,, public services and operations, soil conservation, and special projects. Health and welfare includes expenses for mental health and retardation, child protective board, inmate health, pauper care and charity, substance abuse programs, indigent defense coordinator and payments to attorneys and related expenses for indigent criminal defendants. Culture and recreation represents the operating expenses for libraries, camp advisory board, open space, historical society and EPA Community Stream Restoration. Conservation is operating expenses for the See Less Trash Public Works program and the Agricultural Extension Service programs. Interest represents the periodic charges for debt financing related interest. Capital grants Where the Money Goes Conservation Culture/rec Health/welfare Public transp Interest exp General admin Judicial Financial admin Public safety Legal Public facilities Equip services Page 8 Citizens Report The County continues to rank among the fastest growing counties in the United States and Texas. With a population of 724,900 at September 30, 2007, the County has grown by more than 65.4% in the last ten years. In the one year period ended September 30, 2007, the County grew by 34,400 people (94 people per day), or an increase of almost 5% over September 30, 2006. As a measure of service levels to citizens, the graph on the left provides data on the number of County employees per 1,000 citizens. As of September 30, 2007, Collin County employed an estimated 2.18 employees per 1,000 citizens. This compares very favorably with neighboring counties. County Employees per 1,000 Population 3.25 3.00 2.75 2.50 2.25 2.00 Collin Dallas Denton Tarrant Comparison of Unemployment Rates 6.0 5.5 5.0 4.5 4.0 3.5 3.0 Collin D/FW area Texas US Dallas Ft. Worth The unemployment rate for Collin County is one of the lowest in the state and is almost 2% lower than the unemployment rate for the Dallas/Fort Worth metropolitan area. The unemployment rate for the County is also lower than the rate for the state and the nation, as well as the cities of Dallas and Fort Worth. At September 30, 2007, Collin County’s unemployment rate was 3.9%, an increase from last year’s average of 3.8%. Rural vs. City County Population 700,000 600,000 500,000 400,000 300,000 200,000 1 00,000 - Collin County has five major cities that include just over 80% of the total County population. The five major cities include Plano (the largest with a population of 257,600), McKinney, Allen, Frisco and Wylie. There are a number of other cities in the County, including parts of the cities of Dallas and Richardson. The total area of the County covers 836 square miles. The five largest cities cover approximately 312 square miles; at least half of the County remains rural, agricultural land. Principal cities County remainder 2003 2004 2005 2006 2007 Volume 1, Issue 1 Page 9 Spotlight on County Operations and Services In FY 2007, ending September 30, 2007, Collin County experienced a wide range of weather, economic, and financial factors, including floods and tornadoes, the credit crisis was just getting started, and the rights to toll and operate Highway 121 were sold by the state, with an expected additional funding for transportation and road projects in the future. Other highlights for the year included:  Highway 121 - Tolling rights sold. Collin County is participating in the Highway 121 conversion to a six-lane toll road. The 12.8 mile roadway will be between the Dallas North Tollway on the west terminus and US Highway 75 on the east. The frontage roads have already been completed by the County. The rights fee paid to the Texas Department of Transportation for Collin County projects is more than $600 million and will be used to fund transportation projects in the County. The state and County, along with the major cities in the County that contain portions of the roadway, are working to identify projects and needs. Dallas North Tollroad Expansion - Expansion. The Dallas North Tollway continues with the opening of a new section from US Highway 121 to US Highway 380 and the start of the section going north from US Highway 380 to the Collin-Grayson county line. District Courts - Collin County Courthouse. Work was completed on the new courts building, located on Bloomdale Road and US 75, north of US 380 in McKinney. Moving in in July 2007 were the District Courts, District Clerk, District Attorney, and supporting departments. Expected to house 14 district courts at build-out, this facility will support projected growth in court requirements through 2015. Phase 2 is already in planning to move County Courts and County Clerk to the facility. Public Works - Road Conversion. Continuing our transition from a rural county with emphasis on agriculture and country living to a fast-paced metropolitan county creating its own image in the DallasFort Worth metroplex, Collin County has committed to converting all dirt and rock roads to asphalt roads at the rate of 50 miles of road per year over the next ten years. Information Services - Comprehensive Integrated Justice System (CIJS). In conjunction with the Conference of Urban Counties (37 counties in Texas containing about 80% of the population), Collin County is developing a comprehensive justice system to support all district and county courts, justices of the peace, district clerk and county clerk, district attorney, and supporting departments, as well as providing ancillary information for financial transactions and jury requirements. The first module went on line in February 2007. Administration - The new building to house all administration offices, including the County Auditor’s office is under construction, with an expected Summer, 2009 move-in date. “A new era began January 1, 2007 with the election and swearing in of Keith Self as County Judge. He replaces Ron Harris, who served Collin County for 12 years. “     “The NTTA proposal to build and operate the SH 121 toll road is superior to the private sector proposal for a number of reasons,” according to the Center for Economic Development and Research at UNT. The 1979 courthouse just off the downtown square has been purchased by the City of McKinney, which plans to move into the building in 2010, after the county moves its administration offices to the new building in the county complex.  Your County Courthouse - then, now, tomorrow 1874 - Victorian design set in the center of downtown McKinney. Expanded and completely renovated in 1927 to Neo-classical Revival Style. 1927 - Neo-classical Revival Style used until 1979, when the new courthouse three blocks south was completed. Renovated by the City of McKinney and opened in 2006 as the McKinney Performing Arts Center. 2007 - New Courthouse housing district courts, district clerk, district attorney and supporting departments. Collin County, Texas Fiscal Year Ended September 30, 2007 Collin County Auditor's Office Donald W. Cozad County Auditor 200 South McDonald Street Suite 300 McKinney, TX 75069 Come visit the Collin County web site at: http://www.collincountytexas.gov/ The County’s web site includes information about:        Phone: 972-548-4641 Fax: 972-548-4696 E-mail: auditor@co.collin.tx.us Public Announcements Interactive Maps Elections Road Construction Job Listings Paying Tickets On-Line Outdoor Adventure Camp        Commissioners’ Court Department Heads Financial Information Budget Book Bid Opportunities Kid’s Section Jury Services Outstanding Achievement Award The Government Finance Officers Association (GFOA) of the United States and Canada has given a Certificate of Achievement for Excellence in Financial Reporting to Collin County, Texas for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2005. This is the 26th year in a row that the County has earned the Certificate. The Certificate of Achievement for Excellence in Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. The Certificate of Achievement for Excellence in Financial Reporting is good for one year and must be re-earned each year upon publication of the Comprehensive Annual Financial Report. The published report must reflect the standards of accuracy, presentation, creativity, understandability, and comprehensiveness. The following sources were used to compile this report: Collin County, Texas Comprehensive Annual Financial Report, September 30, 2005 Collin County, Texas website Collin County, Texas Budget Book o o U. S. Bureau of the Census Collin County Public information Office The Courthouse is located at 210 South McDonald Street McKinney, TX 75069 972-424-1460 (metro) http://www.collincountytexas.gov The “Certificate of Achievement for Excellence in Financial Reporting” represents the 27th consecutive year that the County Auditor and the County have received this award.