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County of McLean, Illinois Popular Annual Financial Report For the Fiscal Year Ended December 31, 2012 Submitted by: Michelle L. Anderson, McLean County Auditor ---PAGE BREAK--- County of McLean, Illinois POPULAR ANNUAL FINANCIAL REPORT TABLE OF CONTENTS December 31, 2012 Page Number Introductory Section Table of Contents 1 Introduction to the Popular Annual Financial Report 2 Award for Outstanding Achievement in Popular Annual Financial Reporting 3 Profile of McLean County, Illinois 4 Financial Section Property Taxes—Where do your property taxes go? 5 Revenues—Where does the money come from? 6 Expenditures—Where does the money go? 7 Enterprise Fund 8 Statement of Net Position 9 Economic Outlook 10-11 Other Information Major Accomplishments for McLean County—2012 12 McLean County Elected Officials 13 Reference Information 14 1 ---PAGE BREAK--- Michelle L. Anderson COUNTY AUDITOR Government Center 115 E. Washington Street, Room 402, Bloomington, Illinois 61701 (309) 888-5150 Fax (309) 888-5209 [EMAIL REDACTED] www.mcleancountyil.gov/auditor To the residents of McLean County: For the second consecutive year, I am pleased to present McLean County’s Popular Annual Financial Re- port (PAFR) for the fiscal year ended December 31, 2012, prepared by the Auditor’s Office. This report provides a summary of the County’s revenue, spending, and financial condition. The report also includes supplementary information on local economic conditions, major accomplishments by the County govern- ment, and other reference information for your usage in contacting your Board Members or individual County departments. My goal in producing this report is to communicate the County’s financial opera- tions in a straightforward and easy-to-read format so that you may obtain a better understanding of McLean County government. The information in this report is derived from McLean County’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2012, which was audited by McGladrey, LLP and received an unqualified (clean) opinion. The CAFR is a highly detailed financial report that is prepared in conformity with Generally Accepted Accounting Principles (GAAP). McLean County has received GFOA’s Certificate of Achievement in Financial Reporting for the CAFR for 27 consecutive years. The financial schedules pre- sented in the PAFR have been summarized and combined from assorted financial statements in the CAFR. The PAFR omits the financial statements on discretely presented component units and fiduciary funds, which are included in the CAFR. Anyone who is interested in reading the December 31, 2012 CAFR can find the report under the Comprehensive Annual Financial Report link on the County Auditor’s website at www.mcleancountyil.gov/auditor. Copies of past CAFRs, PAFR, and Quarterly Financial Reports are also available through the link. REPORT SUMMARY This report is for your use in understanding the operations of McLean County government and is not in- tended to replace the CAFR. It is simply a means of increasing public confidence in the County govern- ment. It is an honor to serve as your Auditor and I encourage questions, concerns, or feedback as to the contents of this report or the operations of my office. Feel free to contact me at my office—[PHONE REDACTED], by e-mail [EMAIL REDACTED], or by stopping in at my office in the Government Cen- ter—Room 402. Respectfully submitted, Michelle L. Anderson McLean County Auditor June 30, 2013 2 ---PAGE BREAK--- The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to McLean County, Illinois for its Popular Annual Financial Report for the fiscal year ended December 31, 2011. The Award for Out- standing Achievement in Pop- ular Annual Financial Re- porting is a prestigious na- tional award recognizing con- formance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annu- al Financial Report, whose contents conform to program standards of creativity, presentation, understandabil- ity and reader appeal. An award for Outstanding Achievement in Popular An- nual Financial Reporting is valid for a period of one year only. McLean County, Illinois has received a Popular Award for the first time. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, and we are submitting it to the GFOA. 3 ---PAGE BREAK--- Profile of McLean County, Illinois McLean County is located in central Illinois, situated very near the geographical center of the State of Illi- nois. In area, McLean County is the largest County in the State, comprising just over 1,100 square miles, making it similar in size to the State of Rhode Island in total land. McLean County recorded a population of 169,832 in the 2010 Census, making it one of the largest 15 counties in Illinois (out of 102). McLean Coun- ty’s highest concentration of population are the twin cities of Bloomington-Normal, with Bloomington serv- ing as the County seat. McLean County was established on December 25, 1830, and was named in honor of John McLean, a twice elected United States Senator from Illinois. Before being established, it was part of Tazewell County. The County operates under the County Board form of government according to the mandates of the State of Illinois, in addition to the nine independently elected County officials. The Board is comprised of a 20- member board, two representatives being elected from each of ten districts, and serving four-year terms. The Board is both the legislative policy maker and the supervisor of County Administration. The County Administrator is the chief administrative officer and prepares and recommends the annual budget, imple- ments policies and procedures, manages daily operations, and oversees appointed departmental directors. The nine independently elected County officials are the Auditor, Clerk of the Circuit Court, Coroner, County Clerk, Recorder, Sheriff, State’s Attorney, Regional Superintendent of Education, and Treasurer. The Re- gional Superintendent of Education is a component unit of the State of Illinois, as such, their financial infor- mation is not presented in this report. Elected officials serve four year terms. The County provides a full range of services. This includes administration of justice and public safety, in- cluding the operation of a 221 bed adult detention facility and 26 bed juvenile detention facility, construc- tion and maintenance of 368 miles of County roads and 88 bridges, administration of public health services and programs, operation of a 150 bed Nursing Home, operation of a 2,250 acre recreation area, collection of taxes for over 200 taxing districts, administration of elections, and general administrative services. For additional information about County depart- ments and the vital services that the County pro- vides for its citizens and businesses, visit the Coun- ty’s website at http://www.mcleancountyil.gov. McLean County operates with just over 800 full- time equivalent employees, with roughly half of those being employed within a public safety func- tion. McLean County’s assessed value of taxable property was $3,953,957,241 for 2012. Major accomplishments for McLean County in 2012 can be found on page 12. 4 ---PAGE BREAK--- Property Taxes—Where do your property taxes go? Where do your property taxes go? While the County issues property tax bills each year and is responsible for collecting the payments, only a small portion is retained by the County. The vast majority of property taxes are remitted to other governmental agencies within McLean County. There are over 200 taxing dis- tricts located, at least partially, within McLean County. Depending on the location of a real estate parcel, property taxes for that parcel will be collected for a combination of separate taxing districts. The following is a chart that presents the breakout by governmental type for a typical tax bill. The chart is for illustrative purposes only, based on an average of all tax bills in McLean County. As noted above, each real estate parcel pays property taxes to a varying combination of taxing districts, based on location, and the actual breakout will vary. Property Taxes—Breakout by Governmental Type As shown in the chart above, the largest component of a typical tax bill goes to school districts and commu- nity colleges. This PAFR presents an overview of McLean County’s finances only. The other governmental districts shown above are separate legal entities and operate independent of McLean County. Therefore, in order to deter- mine how your property taxes are spent by each district that you pay taxes to, you would need to separately review financial reports for each district. 5 ---PAGE BREAK--- Revenues—Where does the Money Come From? McLean County receives its funding from a variety of sources, with property taxes being the largest source of that funding. The following table and chart shows the revenue to governmental funds by source for fiscal year ended December 31, 2012. General property taxes represent a tax on all real estate within McLean County. Property taxes are considered to be a general revenue source, meaning it is available to fund all programs of the County. Other taxes includes the Coun- ty’s portion of State Income Tax, Personal Property Replacement Tax, and Retailers Occupation Tax. Licenses, per- mits, fees and fines represent amounts received by the County for licenses/permits, as well as fines and fees due from citizens. Intergovernmental includes grants and other revenues received from the State of Illinois, and various other governmental agencies; as well as the County’s portion of motor fuel tax. Charges for services represents fees paid by individuals, businesses, or other governments who use, purchase, or directly benefit from goods or services provided by the County. Maintenance contracts represent reimbursements on a lease with the Public Building Commission. Interest represents interest earned on the County’s cash and investments. Miscellaneous represents revenues re- ceived by the County that do not fall into one of the designated categories above. 6 2012 Revenue Percentages ---PAGE BREAK--- Expenditures—Where does the money go? For fiscal year ended December 31, 2012, McLean County’s largest expenditures came out of the General Government function (34.31%) and the Public Safety function (32.63%). Expenditures by function have not significantly changed from 2011 to 2012. Expenditures for McLean County include the following expenditure functions: General Government expenditures incurred for administrative offices such as County Board, Administration, Auditor, Coun- ty Clerk, Treasurer, Information Technology, Facilities Management, Employee Benefits (including so- cial security and IMRF), and Tort Judgment. Public Safety expenditures incurred for public safety offices such as Sheriff, State’s Attorney, Coroner, Circuit Clerk, Court Services, and Metcom. Highway and streets expenditures incurred for our Highway Departments non-capital expenditures. Health and welfare expenditures incurred for our various Health Department programs/funds. Culture and recreation expenditures incurred for operation of the County Park (COMLARA), as well as property tax payments to History Museum and Co-operative Extension. Capital Outlay—Highways, bridges, and streets expenditures incurred for the acquisition of right-of-way, engineering, and construction of infrastructure maintained by the Highway Department. Capital Outlay—Other expenditures in- curred for capital outlay other than for highway infrastructure. Debt service expenditures incurred for capital leases entered into by the County for copiers, other projects, and, debt on County build- ings held by the Public Building Commission of McLean County. Governmental Funds—Expenditures by Function 7 General Government, $26,736,684 Public Safety, $25,425,873 Highways & Streets, $9,212,660 Health & Welfare, $7,443,894 Culture & Recreation, $1,030,378 Capital outlay - Highways, bridges, and streets, $4,792,103 Capital Outlay Other, $979,193 Debt service, $2,303,293 ---PAGE BREAK--- Enterprise Fund McLean County maintains one enterprise fund, for the McLean County Nursing Home. An enter- prise fund is used to account for those operations that are financed and operated in a manner similar to private business. A vast majority of revenues come from charges for services (over 98%). Revenues are comprised of the following sources: Charges for Services include payments from private pay residents, as well as public aid payments. Interest in- cludes amounts earned on cash and investments. Capital grants and contributions includes an energy efficiency grant and contributions. Miscellaneous includes revenues not fitting into another category. A vast majority of expenses come from personal services Expenses are comprised of the following lines: Personal services include payroll and payroll related benefits. Contractual services includes amounts paid on con- tractual agreements entered into by the Nursing Home. Supplies includes supplies needed to oper- ate the facility. Food includes food for meals of residents. Utili- ties includes utilities (water, elec- tricity, etc) needed to operate the facility. Repairs and mainte- nance includes repairs and gen- eral maintenance done on the facility. Depreciation represents the amount of depreciation on capital assets. Loss on asset dis- posal represents the loss taken when the Nursing Home disposed of assets. Revenue Source 8 Personal services 69% Contractual services 15% Supplies 6% Food 5% Utilities 2% Repairs and maint. 0% Depreciation 3% Loss on asset disposal 0% Charges for services, $7,522,362 Miscellaneous, $52,056 Interest, $40,392 Capital grant and contribution, $25,132 ---PAGE BREAK--- Statement of Net Position Current and other assets—Assets that a company can reasonably expect to convert to cash, sell, or consume within one year. Capital assets— The County’s long-term invest- ments in infrastructure (buildings, highways, bridg- es) and other capital assets. These assets are used by McLean County to provide services to citizens, thus these assets are not available for future spend- ing. Current and other liabilities—This includes debt that can be paid off in one year or less. This debt includes accounts payable, accrued interest, claims payable, and unearned revenue. Long-term liabilities—This debt includes capital leases (for debt to the Public Building Commission) and long term portions of post employment bene- fits. Net assets invested in capital assets, net of related debt—This represents the County’s investments in capital assets less any related outstanding debt used to acquire those assets. One should bear in mind that other sources are needed to repay the debt, since the capital assets themselves cannot be used to settle these liabilities. Restricted assets—This represents resources that are subject to external restrictions, for the reason listed above. Unrestricted net assets—This represents the acces- sible resources to the County in order to provide services to the citizens of McLean County if no addi- tional revenue or resources were available. 9 ---PAGE BREAK--- Economic Outlook Assessed value of taxable property within McLean County declined in 2012 for the first time since 1985. Property is assessed by the McLean County Supervisor of Assessments at 33 1/3% of fair market value. Even with the slight decline, the assessed valuation for the County has still increased approxi- mately 3.56% per year, over the last ten years. Over the last year, the County’s assessed value de- creased by 0.92% to $3,953,957,241. Assessed Value—Taxable Property Strong economic growth has historically created a low unemployment rate for McLean County. Even during tough economic times, comparisons to state and national unemploy- ment rates support the claims that McLean County is a financially strong, vibrant communi- ty to live in. Unemployment 10 0 2 4 6 8 10 12 2008 2009 2010 2011 2012 McLean County State of Illinois United States ---PAGE BREAK--- Economic Outlook (continued) 11 Principal Employers in McLean County McLean County is home to two major uni- versities, Illinois State University and Illinois Wesleyan University. Graduates of ISU and IWU often stay in the area due to a favora- ble economic outlook and jobs in the area. Insurance is a key employer field in McLean County, as it is home to both State Farm Insurance and Country Financial. McLean County has an Aa2 rating with Moody’s rating agency. ---PAGE BREAK--- Major Accomplishments for McLean County—2012 The Drug Court Grant, awarded in 2008, came to a close during 2012 with over $333,000 in federal dollars coming to McLean County. Drug Court, which began in August 2006, has graduated sixty-one people since its inception. The Facilities Management ob- tained a grant from the Illinois De- partment of Natural Resources for the renovation of the HVAC Sys- tems at the McLean County Muse- um of History located at the his- toric Courthouse. $225,000 was awarded to the County towards the renovation project that was concluded during 2012. 12 McLean County Auditor Michelle L. Anderson and McLean County Treasurer Becky McNeil were awarded the prestigious Government Finance Officers As- sociation Certificate of Achievement for their Comprehensive Annual Financial Report. The award, for fiscal year ended December 31, 2011 marks the 27th consecutive year McLean County has received this recognition. ---PAGE BREAK--- McLean County Elected Officials County Wide Elected Officials Office/Name Term Expires Office/Name Term Expires Auditor Sheriff Michelle L. Anderson December 2016 Mike Emery December 2014 Circuit Clerk State’s Attorney Don Everhart December 2016 Jason Chambers December 2016 Coroner Reg. Supt. Of Education Beth Kimmerling December 2016 Mark Jontry December 2014 County Clerk Treasurer Kathy Michael December 2014 Rebecca C. McNeil December 2014 Recorder H. Lee Newcom December 2013 County Board Members District/Name Term Expires District/Name Term Expires District 1 District 6 Don Cavallini December 2014 George Gordon December 2016 Stan Hoselton December 2016 Laurie Wollrab December 2014 District 2 District 7 Jim Soeldner December 2014 Richard Buchanan December 2014 Matt Sorensen December 2016 Victoria F. Harris December 2016 District 3 District 8 Julie J. Brandt December 2014 Paul R. Segobiano December 2014 George O. Wendt December 2016 Scott Black December 2016 District 4 District 9 William T. Caisley December 2016 Erik Rankin December 2014 Sally K. Pyne December 2014 Susan Schafer December 2016 District 5 District 10 John McIntyre December 2016 Benjamin Owens December 2016 Sonny O’Connor December 2014 Chuck Erickson December 2014 13 ---PAGE BREAK--- Reference Information: Website: http://www.mcleancountyil.gov Phone Directory for County Offices: Administration/Board [PHONE REDACTED] Auditor [PHONE REDACTED] Building & Zoning [PHONE REDACTED] Child Advocacy Center [PHONE REDACTED] Circuit Clerk [PHONE REDACTED] Circuit Court (Judicial) [PHONE REDACTED] Coroner [PHONE REDACTED] County Clerk [PHONE REDACTED] Court Services (Probation) [PHONE REDACTED] Emergency Management Agency [PHONE REDACTED] Facilities Management [PHONE REDACTED] Health Department [PHONE REDACTED] Highway Department [PHONE REDACTED] Information Technologies [PHONE REDACTED] Jury Commission [PHONE REDACTED] Nursing Home [PHONE REDACTED] Parks & Recreation [PHONE REDACTED] Public Defender [PHONE REDACTED] Recorder [PHONE REDACTED] Sheriff (including Detention Facility) [PHONE REDACTED] State’s Attorney [PHONE REDACTED] Supervisor of Assessments [PHONE REDACTED] Treasurer [PHONE REDACTED] Veterans Assistance [PHONE REDACTED] 14