Post on 22-May-2020
MARTIN STARNES & ASSOCIATES, CPAs, P.A.
Elsa S. Watts, Manager
Catawba County Audit/ Financial Review
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• Audit Opinion
• Compliance – Single Audit (State/Federal Grants)
• Financial Condition
AUDIT RESULTS
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Fiscal Year 2017-18 Financial Report
Bob MiracleChief Financial Officer
January 22, 20193
Bond Rating Upgrade!
• Standard and Poors upgraded the County in June to AA+ for general obligation bonds and AA for their limited obligation bonds :
• Upgraded due to “very strong management, strong budgetary performance and very low overall net debt”
• Continued economic development and expansion
• More balanced economic base across multiple sectors
• Increasing new residential & commercial development
• Higher rating = savings for taxpayers; saved $125K of interest over life of most recent bond to fund Education, Jail Expansion, and Mtn. Creek Park
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• FY 14-15; sold St. Stephens Elementary $3.5M
• FY 15-16, Sold Home Health $3.5M plus $1.5M in savings in expenditures
• FY 16-17, increase in EMS vehicles purchases, debt service, 27th payroll
• FY 17-18, DSS daycare direct payments from state, $6M reduction in rev/exp
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18
Historical General Fund Performance
Revenue Expend./Other Fin. Sources Available Fund Balance
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Revenues continue to diversify–Actual 2018 vs 2012
• Click to add text
55%
6%
18%
0%
18% 1%
2%
General Fund Revenues FY 2018
Ad Valorem Taxes
Permits, Fees Services
Sales Taxes
Invest Earnings
Restricted Revenues
Unrestricted Revenues
Other
52%
9%
13%
0%
23%
1%
2%
General Fund Revenues FY 2012
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Consistent Property Tax Base Growth
0
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
16,000,000,000
2016 2017 2018
Real Personal Motor Vehicles Public Utilities
2018 Real property up $138m, Personal up $106m, Motor Vehicles up $16m, Public Utilities up $19m
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Property Tax Revenues
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
2016 2017 2018
Real Personal Motor Vehicles Public Utilities
Collection rates of 96.94%; 98.0%; 98.18%; 98.34%; 98.37% last five years8
2018-19 Tax Rate NC Counties
$0.200 $0.400 $0.600 $0.800 $1.000 $1.200 $1.400
High
Average
Catawba
Low
1.000
0.6735
0.575
0.310
• 8th lowest among 27 urban (>100,000 pop.) counties:Buncombe, Craven, Brunswick, Henderson, Iredell, Davdison, New Hanover
• 2nd lowest tax rate in the Charlotte region; 25th lowest out of 100 Counties in NC 9
Sales Tax Revenues
• Two-cent collections were up $1.3m in ’18; 4.25% increase• ¼ cent collections pledged to fund:
Justice Center Expansion, 911 Center, Emergency Operations Center, Water & Sewer, Economic Development & School Operating Needs
23,701,885
24,929,372
26,655,66829,819,235
31,141,4714,457,5544,758,400
5,192,3525,614,850
5,772,844
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2014 2015 2016 2017 2018
1/4 cent
2 cents
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Catawba County maintains position as retail hub
• Catawba County – 18th
in population in NC; 11th
in retail sales
• 62% of retail sales in the Unifour; 43% population
2016-2017 2017-2018 % chg.
Mecklenburg $ 21,272,409,316 $ 22,200,119,100 4.36%
Wake $ 15,964,857,939 $ 18,273,741,182 14.46%
Guilford $ 7,352,422,087 $ 7,433,151,224 1.10%
Durham $ 6,884,030,147 $ 7,195,550,251 4.53%
Buncombe $ 5,134,268,461 $ 5,437,492,143 5.91%
Forsyth $ 5,355,374,589 $ 5,368,482,871 0.24%
New Hanover $ 4,391,502,592 $ 4,484,999,670 2.13%
Cumberland $ 4,040,268,838 $ 4,049,332,515 0.22%
Cabarrus $ 3,368,351,201 $ 3,469,472,314 3.00%
Alamance $ 2,304,426,840 $ 2,411,562,120 4.65%
Catawba $ 2,314,253,379 $ 2,369,166,744 2.37%
Pitt $ 2,330,715,251 $ 2,355,644,120 1.07%
Iredell $ 2,286,568,281 $ 2,346,323,640 2.61%
Gaston $ 2,102,944,605 $ 2,179,421,047 3.64%
Union $ 2,018,468,268 $ 2,068,107,653 2.46%
Onslow $ 1,981,915,248 $ 2,043,208,023 3.09% 11
Strong commitment to Education, Public Safety and Econ. Dev.
25%
26%19%
11%
10%7%
2%
General Fund Expenditures FY 2018
Human Services
Education
Public Safety
Debt Service
Econ. Dev./Environ.
General Gov.
Cultural Arts
27%
21%
13%
26%
6% 6%
1%
General Fund Expenditures FY 2012
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66%
24%
5%
5%Education
Public Safety
Water & Sewer
Economic Development
Uses of Outstanding Debt - 2018
Credit Rating: Moody’s Aa1/Standard & Poor’s AA• 2018 debt per capita = $1,263
$198.9m in outstanding debt; $1,137.1m available (15% of limit)13
Catawba County General Fund Balance Classifications
2% 36%
1%
15%
35%
Non-Spendable
Restricted
Committed
Assigned
Unassigned
Non-spendable: Inventories, Prepaid taxes/bills, Notes ReceivableRestricted: State Statute, Register of Deeds-Technology, Debt ServiceCommitted: Tax RevaluationAssigned: Reinventing Funds, Subsequent Year’s Expenditures (’19 budget)
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Fund Balance “Available” LGC vs. Credit Agency
23.39% 21.61%26.12%
35.36% 35.04%38.25%
15.17% 12.65% 13.15%
20.15%21.53% 22.84%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
FY13 FY14 FY15 FY16 FY17 FY18
LGC % Credit Rating % LGC recommend 8% Board policy 16% 15
Financially – A Great Year
• S&P upgrade
• Added to Fund Balance
• Steady Revenues
• Underspent Expenditures
SUMMARY
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Questions?
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