Newspaper Page Text
Wednesday, April 9, 2008
The Braselton News
Page 5A
Analysis:
Barrow in the black for FY2007
BY MIKE BUFFINGTON
FOR TRIE first time in three years, the
Barrow County government ended its fiscal
year in the black, according to the fiscal
year 2007 audit. The past two years, the
county purposely drew down its general fund
reserve funds to finance additional services.
In FY07, Barrow added $1.27 million back
into reserves of its general fund account.
But some creeping problems were evident
in the audit, most connected with the overall
economic downturn and flat revenue.
The audit, which covers Barrow’s fiscal year
from Oct. 1, 2006 - Sept. 30, 2007, states that
Barrow netted $1.27 million in its general fund
for the year. That pushed the county’s overall
fund balance to a total of $9 million at the end
of FY07. Of that $9 million, $3.64 is in operat
ing cash, and $2.63 is in a CD. The remainder
is in other receivables.
The $9 million fund balance represents 27
percent of the county’s general fund expens
es, which puts the county at the top end of
the recommended range of 15-25 percent
fund balance ratio.
The Barrow County government added 19
new positions in FY07, most public safety
positions. But that was less than the previ
ous two years when the county added 43
positions in FY05 and 44 new employees in
FY06. The county had 472 full-time equivalent
positions at the end of FY07, according to the
audit.
INCOME
In general revenues, the county saw a 10
percent increase from the previous year. For
FY07, the county took in $46.9 million (includ
ing SPFOST) compared to $42.5 million the
year before. Much of that was due to a large
jump in property tax revenues, which jumped
from $10.5 million in FY06 to $15 million in
FY07.
But while the county took in more money,
some key areas of revenues were flat. Of par
ticular note, sales tax revenues, the county’s
3-Year Trend
(In millions, rounded)
FY05
General Fund Income $22.9
General Fund Expenses $24.3
Net ($1.45)
Ending Fund Balance $9.3
FY06
General Fund Income $26.2
General Fund Expenses $27.9
Net ($1.6)
Ending Fund Balance $7.7
FY07
General Fund Income $35.0
General Fund Expenses $33.7
Net $1.27
Ending Fund Balance $9.0
(Does not include SPLOST funds or water &
sewer funds. Numbers are rounded.)
second largest source of funding, fell from
the previous year and were $352,000 under
budget. Several other fees also fell below
expected levels for the year (see chart).
Offsetting those soft areas of income were
increases in other areas, including $225,000
more in property taxes than anticipated. Beer
and wine taxes, clerk of court fees and pro
bate court fines were also above expected
levels during FY07. (See chart)
EXPENSES
On the expense side, spending for public
safety continued to dominate the county’s
ledger. The three largest departments in
county government were all public safety
related.
The sheriff’s department was the county’s
largest department at $7.25 million, followed
by fire and EMS at $5.84 million and the
detention center at $3.93 million.
Several county departments also came in
under budget in expenses for the year.
(See charts for more details)
SPLOST
The county’s special purpose local options
sales tax again represented a major part of
county’s income and expenses. At the end
of FY07, Barrow had a SPLOST balance of
$65.7 million. During the year, the county
took in $9.1 million in new SPLOST revenue
and expended $14.2 million for various
capital projects. The SPLOST income also
showed $2.39 million from investments.
The largest ticket item in FY07 from the
SPLOST was $6.7 million spent on a new
criminal justice facility. That project is slated
to cost $46.4 million when it is finished in
2009.
The county has expended a majority of
its funds from the 2001 SPLOST list, having
spent $28.5 million out of a total $37.2 mil
lion. (See charts for more details)
WATER/SEWER
In the water and sewer department, the
county had a net positive operating income
of $736,600 in its sewerage operations, but
had a negative operating deficit of $632,000
in its water operations. That was mostly due
to the note payment for the Bear Creek Res
ervoir. The county subsidizes that payment
with SPLOST funds, but that is shown as a
transfer in the audit report and not revenue.
LONGTERM DEBT
In long-term debt, Barrow’s major debt is
a $59 million balance in general obligation
bonds funded by SPLOST revenues. The
county also has an $18.3 million balance on
its Upper Oconee Water Authority debt and
$12.6 million in water revenue bonds.
The county also has a $3.8 million out
standing long term debt in a joint project for
sewerage treatment with the City of Winder,
$1.7 million in general capital leases and
$373,000 in airport revenue bonds.
BARROW COUNTY
LARGEST DEPARTMENTS
FY2007
The following are Barrow County's largest 15 departments or line-item
expenses based on non-capital expenditures during FY07:
1. Sheriff’s Department $7.25 million
2. Fire & EMS Services $5.84 million
3. Detention Center $3.93 million
4. Roads & Bridges $2.12 million
5. E911 $1.25 million
6. Building & Grounds $1.0 million
7. Leisure Services (Rec) $922,500
8. Work Release Program $791,900
9. Tax Assessor $791,000
10. District Attorney $785,100
11. Planning Dept $779,000
12. Financial Adm $694,000
13. Clerk of Court $680,700
14. Public Works Admin $610,200
15. Insurance $608,500
SPECIAL FUNDS
E911 Fund
Income $822,500
Expenses $1.25 million
Net ($437,500)
Transfer In (from general fund) $479,500
NET $42,000
Sewer Fund
Income $2.13 million
Operating Expenses $1.4 million
Net $736,600
Water Fund
Income $1.37 million
Operating Expenses $2.0 million
Net ($632,000)*
*(.Although the water department had a loss in operating expenses, when adjust
ed for depreciation, amortization and other items, it had a net positive cash flow
of $16,600 for the year.)
AUDIT vs. BUDGET
FY2007
INCOME
While Barrow County took in more dollars in FY07
than FY06, it didn’t always get the amount of funding it
had anticipated in its budget. When compared to budget,
anticipated Barrow revenues fell short in:
Sales taxes ($352,000)
Zoning fees ($190,400)
Permits ($37,400)
Work release program ($119,700)
Prisoner housing ($42,200)
EMS fees ($101,000)
Solid waste fees ($98,400)
Misc. fines & forfeitures ($113,000)
While Barrow fell short in some anticipated revenue,
it also collected more than anticipated in some areas,
including:
Property taxes +$225,000
Beer/wine tax +$54,300
Clerk of Court fees +195,000
Probate court fines +$77,600
EXPENSES
On the expense side, a number of county departments
came in with expenses under the projected original* bud
get amounts. Some of the key items were:
Superior Court, $31,500 under original budget
Clerk of Court, $23,200 under budget
District Attorney, $47,100 under budget
Detention center, $346,600 under budget
Work release program, $93,200 under budget
Airport authority, $105,600 under budget
*(Note: These compare final expenses with the origi
nal budget amounts, not amended budget numbers.)
BARROW COUNTY FY2007
FEE & TAX DEPARTMENTS
The following are selected programs that levy user fees, but that are
also subsidized by general tax income from the county budget:
Recreation
Fees = $331,600
Expenses = $922,500
Aging Program
Fees = $129,600
Expenses = $336,500
Work Release Program
Fees = $30,300
Expenses = $791,800
EMS & Fire
Fees = $1.7 million
Expenses = $5.84 million
Animal Control
Fees = $44,500
Expenses = $464,800
E911
Fees = $822,500
Expenses = $1.26 million
SPLOST Projects Update
2001 SPLOST Projects
(millions of dollars)
Proiect
Oriainal $
Current Est. $
Prior Spent
FY07 Spent
Total Spent
Roads/bridges
$10.77
$10.77
$3.28
$2.69
$5.98
Annex Renov.
$2.0
$2.12
$2.12
0
$2.12
Work Release
$1.0
$1.02
$1.02
0
$1.02
Sr. Center
$0.6
$0,599
$0,599
0
$0,599
Rec. Projects
$2.5
$2.5
$0.97
$.55
$1.52
Bear Creek Debt
$10
$10
$8.6
$.53
$9.14
Land Purch.
$3
$3
$2.5
$0
$2.5
Fire Stations
$0.8
$.088
$0.88
$0
$0.88
Water Proj.
$3
$3
$0.78
$0.36
$1.1
Sewer Proi.
$3.6
$3.6
$3.6
$0
$3.6
TOTALS
$37.2
$37.5
$24.4
$4.14
$28.5
2005 SPLOST
(millions of dollars)
Proiect
Oriainal $
Current Est. $
Prior Spent
FY07 Spent
Total Spent
Bear Creek
$5.4
$5.4
$0
$1.2
$1.2
Roads
$8.6
$8.6
$0
$1.3
$1.3
Jail/Justice Bid.
$46.4
$46.4
$0.23
$6.7
$6.95
E911 Bid.
$1.5
$1.5
$0
$0
$0
Fire Training Ctr.
$2.5
$2.5
$0,006
$0.7
$0.7
Courthouse Renv.
$4.2
$4.2
$0,045
$0.15
$0.19
Cultural Ctr.
$3
$3
$0
$0.2
$0.2
West bypass
$4
$4
$0
$0
$0
Health Dept.
$1
$1
$0
$0,006
$0,006
Rec. & Parks
$3.9
$3.9
$0
$0
$0
Sewer
$1.7
$1.7
$1.4
$.46
$1.87
Airport Impv.
$.5
$.5
$0
$0
$0
Animal Ctrl.
$1.5
$1.5
$0
$0,047
$0,047
TOTAL
$84.3
$84.3
$1.69
$10.8
$12.5
TERMS
AUDIT — An audit of government finances looks at what
an agency actually received in income and what it spent during
a year. Audits also look at total county assets and liabilities of a
government. Audits are done annually.
BUDGET — A government budget is a projection of what
a government is likely to spend during a year; the numbers are
“soft” in that they are just estimates, not actual dollars earned
or spent.
TAXES — Governments have income from a variety of taxes.
The most important taxes for local governments are property
taxes and sales taxes. With sales taxes, there are two kinds: Local
Option Sales Tax (LOST), which is money that goes into the gen
eral government account and can be spent for anything. Second
are Special Local Option Sales Taxes (SPLOST) which can only
be spent for a list of specified purposes approved by voters and
can only be used for capital expenses, not general expenses.
CAPITAL EXPENSES — These are dollars spent for “hard”
assets, such as infrastructure, buildings, cars, equipment, etc.
FUND BALANCE — A government fund balance is similar
to “profit” from a private business. The fund balance number
reflects the amount of available resources a government has
accumulated over the years and that are available to meet obliga
tions. This includes cash, investments, accounts receivable, and
taxes receivable; subtracted from those items are any current
obligations the government has to meet. Generally speaking, the
fund balance number should be around 25 percent of the total
government budget.
GENERAL GOVERNMENT FUND — The general govern
ment fund is the main account a government has and is similar
to the operating fund of a private business. This fund generally
excludes SPLOST income and expenses, and business funds, all
of which tend to skew the numbers.
BUSINESS FUNDS — Business, or proprietary funds, are
aspects of a local government that are operated similar to a busi
ness where income and expenses are accounted for separately.
Local governments generally operate their water and sewerage
departments as a business fund.
FISCAL YEAR — The fiscal year is the 12-month cycle gov
ernments operate on. In Barrow County, the fiscal year is October
1-September 30. The calendar year in which the cycle ends is the
designation for that year’s budget and audit. For example, FY07
means “Fiscal Year 2007” which for the Barrow County govern
ment ended September 30, 2007. Some governments operate
their fiscal year with the calendar year. The state and local school
systems operate their financial years on a July 1 -June 30 cycle.
BARROW COUNTY FY07
GENERAL FUND AUDIT
(Excludes SPLOST and special funds;
number have been rounded)
REVENUES
TAXES
Property taxes $15 million
Sales taxes $5.7 million
Beer & wine taxes $244,300
Real estate trsfr. tax $183,100
Franchise tax $179,600
Intangible taxes $577,800
Insurance premium tax $1.2 million
TOTAL TAXES $23.17 million
LICENSES/PERMITS
Beer & wine licenses $57,600
Zoning fees $161,900
Fire plan fees $13,300
County permits $762,600
Other licenses $116,000
Financial business license $83.600
TOTAL LICENSES/PERMITS $1.19 million
INTERGOVERNMENTAL
Aging program $129,600
Georgia grants $5,400
Federal grants $381.400
TOTAL $516,400
SERVICE CHARGES
Clerk of court $795,000
Magistrate court $166,000
Probate court $61,500
Sheriff $105,000
Work release $30,300
Prisoner housing $37,800
Recreation fees $331,700
Recycling $1,500
Tax maps $10,800
EMS $1.71 million
Animal registration $44,500
Solid waste fees $1.0 million
Commissions tags, taxes $964,800
Tag mailing $14,700
Subdivision lights $472,000
Other $7.400
TOTAL $5.81 million
FINES & FORFEITURES
Clerk of court $383,200
Probate court $727,600
Magistrate court $43,500
Pretrial diversion $110,500
Other $130,000
Jail surcharge $127.700
TOTAL $1.58 million
Investment & Misc. Income $853,900
TOTAL GEN. FUND INCOME $33.0 million
EXPENSES
GENERAL GOVERNMENT
Governing body $167,000
Commissioners clerk $67,300
Commission chairman $126,800
Chief administrator $335,400
Elections $232,300
Financial admin $694,000
Licenses & permits $437,100
Purchasing $130,700
Data processing $347,100
Human resources $247,400
Tax commissioner $596,900
Tax assessor $791,000
Insurance $608,500
Building & grounds $1.0 million
Engineering $164,000
Other $60.500
TOTAL $6.0 million
JUDICIAL
Superior court $209,300
Clerk of court $680,700
District Attorney $785,100
Magistrate court $342,800
Probate court $361,800
Juvenile court $146,100
Indigent defense $301.000
TOTAL $2.82 million
PUBLIC SAFETY
Sheriff $7.25 million
Detention center $3.93 million
Work release $791,900
Fire & EMS $5.84 million
Coroner $37,700
Animal control $464,800
EMA $31.600
TOTAL $18.3 million
PUBLIC WORKS
Administration $610,200
Roads & bridges $2.12 million
Storm management $120,800
Maintenance facility $220.400
TOTAL $3.0 million
HEALTH & WELFARE
Mental health dept $26,500
DFACS $64,600
Aging program $336,500
Mental training center $0
Peace Place $14,000
Board of health $219.800
TOTAL $661,500
CULTURE & RECREATION
Leisure services $922,500
Piedmont library $55.700
TOTAL $978,200
HOUSING & DEVELOPMENT
Keep Barrow beautiful $84,000
Airport authority $382,700
Extension service $30,000
Soil conservation $7,900
Forest services $2,500
GIS $189,000
Planning $779,000
IDA $78.000
TOTAL $1.55 million
DEBT SERVICE
Principal $238,900
Interest $30.200
TOTAL $269,100
TOTAL GENERAL FUND EXPENSES $33.74 million
ADJUSTMENTS
Proceeds from capital leases $2.04 million
Proceeds from sales of assets $140,200
Transfer in $245,400
Transfer out (E911) ($479,500)
TOTAL ADJUSTMENTS $1.94 million
NET of FY07 $1.27 million
PREVIOUS FUND BALANCE $7.74 million
NEW TOTAL FUND BALANCE $9.02 million
