About The Braselton news. (Jefferson, Ga) 2006-current | View Entire Issue (April 9, 2008)
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
