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County of McLean, Illinois Popular Annual Financial Report For the Fiscal Year Ended December 31, 2011 Submitted by: Michelle L. Anderson, McLean County Auditor ---PAGE BREAK--- County of McLean, Illinois POPULAR ANNUAL FINANCIAL REPORT TABLE OF CONTENTS December 31, 2011 Page Number Introductory Section Table of Contents 1 Introduction to the Popular Annual Financial Report 2 Profile of McLean County, Illinois 3 Financial Section Property Taxes—Where do your property taxes go? 4 Revenues—Where does the money come from? 5 Expenditures—Where does the money go? 6 Enterprise Fund 7 Statement of Net Assets 8 Economic Outlook 9 Other Information Major Accomplishments for McLean County—2011 10-11 McLean County Elected Officials 12 Reference Information 13 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: I am pleased to present McLean County’s Popular Annual Financial Report (PAFR) for the fiscal year ended December 31, 2011, prepared by the Auditor’s Office. This report provides a summary of the County’s reve- nue, spending, and financial condition. The report also includes supplementary information on local eco- nomic conditions, major accomplishments by the County government, 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 operations 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, 2011, 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 26 consecutive years. The financial schedules present- ed in the PAFR have been summarized and combined from assorted financial statements in the CAFR. The PAFR omits the financial statements on business-type activities, discretely presented component units, pro- prietary funds, and fiduciary funds, which are included in the CAFR. Anyone who is interested in reading the December 31, 2011 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 Quar- terly 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 government. 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 Center—Room 402. Respectfully submitted, Michelle L. Anderson McLean County Auditor June 30, 2012 2 ---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 over half of those being employed within a public safety function. McLean County’s assessed value—taxable property was $3,990,841,421 for 2011. Major accomplishments for McLean County in 2011 can be found starting on page 10. 3 ---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 School Districts & Community Colleges 66% McLean County 11% Municipalities 9% Township & Twp Road Districts 4% Library 3% TIF 2% Water, Airport Authority, Fire Protection, and other districts 5% 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. 4 ---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, 2011. McLean County Governmental Funds - Revenues Revenue Source General Fund Other Governmental Funds Total % of Total General property taxes $ 11,593,717 $ 21,260,377 $ 32,854,094 41.28% Other taxes 8,524,504 85,123 8,609,627 10.82% Licenses, permits, fees and fines 4,856,857 2,359,692 7,216,549 9.07% Intergovernmental 4,547,088 8,309,117 12,856,205 16.15% Motor fuel tax - 5,404,577 5,404,577 6.79% Charges for services 7,420,877 1,452,629 8,873,506 11.15% Maintenance contracts 2,803,414 - 2,803,414 3.52% Interest 693,773 15,141 708,914 0.89% Miscellaneous 219,729 42,344 262,073 0.33% $ 40,659,959 $ 38,929,000 $ 79,588,959 100.00% General property taxes 41% Other taxes 11% Licenses, permits, fees and fines 9% Intergovernmental 16% Motor fuel tax 7% Charges for services 11% Maintenance contracts 4% Interest 1% Miscellaneous 0% 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. Motor fuel tax represents the County’s portion of motor fuel tax. Charges for services repre- sents 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 Build- ing Commission. Interest represents interest earned on the County’s cash and investments. Miscellaneous repre- sents revenues received by the County that do not fall into one of the designated categories above. 5 ---PAGE BREAK--- Expenditures—Where does the money go? For fiscal year ended December 31, 2011, McLean County’s largest expenditures came out of the General Government function (34.28%) and the Public Safety function (31.27%). Expenditures for McLean County include the following expenditure functions: General Govern- ment expenditures incurred for administrative offices such as County Board, Administration, Au- ditor, County Clerk, Treasurer, Information Technology, Facilities Management, Employee Bene- fits (including social 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 Depart- ment 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 Exten- sion. Capital Outlay—Highways, bridges, and streets expenditures incurred for the acquisition of right-of-way, engineering, and construction of infrastructure maintained by the Highway Depart- ment. Capital Outlay—Other expenditures incurred for capital outlay other than for highway in- frastructure. Debt service expenditures incurred for capital leases entered into by the County for copiers, other projects, and, debt on County buildings held by the Public Building Commission of McLean County. General Government, $27,284,954 Public Safety, $24,888,963 Highways & Streets, $9,702,155 Health & Welfare, $7,436,502 Culture & Recreation, $1,049,072 Capital outlay - Highways, bridges, and streets, $4,867,466 Capital Outlay Other, $696,104 Debt service, $2,352,975 Governmental Funds—Expenditures by Function 6 ---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. Charges for services, $7,959,013 Miscellaneous, $47,723 Interest, $46,481 Capital grant and contribution, $26,672 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 7 ---PAGE BREAK--- Statement of Net Assets McLean County's Net Assets as of December 31, 2011 Governmental Enterprise Total Primary Activities Fund Government Current and other assets $ 68,813,507 $ 9,599,598 $ 78,413,105 Capital assets 116,021,694 1,219,854 117,241,548 Total assets 184,835,201 10,819,452 195,654,653 Current and other liabilities 39,199,828 353,172 39,553,000 Long-term liabilities 10,783,584 320,818 11,104,402 Total liabilities 49,983,412 673,990 50,657,402 Net assets: Invested in capital assets, net of related debt 107,867,249 1,210,016 109,077,265 Restricted for: Operations 893,425 - 893,425 Health and wellness 3,975,681 - 3,975,681 Highway 11,193,422 - 11,193,422 Employee benefits 501,509 - 501,509 Public safety 1,436,582 - 1,436,582 Debt service 164,771 - 164,771 Culture and recreation 38,978 - 38,978 Capital improvements 486 - 486 Unrestricted 8,779,686 8,935,446 17,715,132 Total net assets $ 134,851,789 $ 10,145,462 $ 144,997,251 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 spending. 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 relat- ed 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 ac- cessible resources to the County in order to pro- vide services to the citizens of McLean County if no additional revenue or resources were available. 8 ---PAGE BREAK--- Economic Outlook 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. Assessed value of taxable property with- in McLean County continues to grow. Property is assessed by the McLean County Supervisor of Assessments at 33 1/3% of fair market value. The assessed valuation for the County has increased on average over the last 10 years by ap- proximately 4.36%. Over the last year, the County’s assessed value increased by 2.2% to $3,990,841,421. Assessed Value—Taxable Property Strong economic growth has histor- ically created a low unemployment rate for McLean County. Even dur- ing tough economic times, compari- sons to state and national unem- ployment rates support the claims that McLean County is a financially strong, vibrant community to live in. 0 2 4 6 8 10 12 2007 2008 2009 2010 2011 McLean County State of Illinois United States Unemployment 9 ---PAGE BREAK--- Major Accomplishments for McLean County—2011 McLean County Auditor Michelle L. Anderson and McLean County Treasurer Becky McNeil were awarded the prestigious Government Finance Offic- ers Association Certificate of Achievement for their Comprehensive Annual Financial Report. The award, for fiscal year ended December 31, 2010 marks the 26th consecutive year McLean County has received this recognition. Court Services and the Circuit Court were awarded a $1,182,864 grant by the Substance Abuse and Mental Health Services Administration (SAMHSA), one of on- ly eleven grantees in the United States to receive Funding. It is a three-year grant for McLean County. Court Services was awarded an Adult Redeploy grant that started during fiscal year 2011. The grant allows Court Services to increase job skills and aid in re-integration to the community for their clients. It is an annual grant, but, annual con- tinuation is expected. Facilities Management secured a $92,000 grant from Tri- County Regional Planning Commission/DECO for upgrading to Energy Efficiency Lighting, replacing T-12 ballasts and bulbs with more efficient T-8 ballasts and bulbs in light fixtures at the Law & Justice Center, County Nursing Home, Parks & Recreation buildings, Juvenile Detention Center, and Health Department building prior to the Federally mandated ballast/bulb change outlawing all T-12 fixtures. This will result in savings in energy costs in future years. 10 ---PAGE BREAK--- Major Accomplishments for McLean County—2011 (continued) The Highway Department, in a joint effort with the Parks & Recreation Department, secured High Risk Rural Road funding from the Federal Highway Administration to realign the boat ramp at Evergreen Lake (COMLARA Park). The realignment at the boat ramp was a safety concern; the project was completed during 2011. The Highway Department, along with engineering firm Hampton, Lenzini and Ren- wick, Inc., were awarded the ACEC’s 2012 Award for Structural Systems for a bridge in the Anchor Road District. During 2011, the County switched to a Voice Over Internet Proto- col (VOIP) Phone system. The project, coordinated by the Infor- mation Services Department, went live in April 2011. The Emergency Management Agency (EMA) Department secured a grant to aid County Departments in purchasing new radios. The new radios were needed to comply with a Federal mandate to re- band radios by December 31, 2012. 11 ---PAGE BREAK--- McLean County Elected Officials County Wide Elected Officials Office/Name Term Expires Office/Name Term Expires Auditor Sheriff Michelle L. Anderson December 2012 Mike Emery December 2014 Circuit Clerk State’s Attorney Don Everhart December 2012 Ronald Dozier December 2012 Coroner Reg. Supt. Of Education Beth Kimmerling December 2012 Mark Jontry December 2014 County Clerk Treasurer Kathy Michael December 2014 Rebecca C. McNeil December 2014 Recorder H. Lee Newcom December 2012 County Board Members District/Name Term Expires District/Name Term Expires District 1 District 6 Don Cavallini December 2012 George Gordon December 2012 Stan Hoselton December 2012 John McIntyre December 2012 District 2 District 7 Jim Soeldner December 2012 John Butler December 2012 Matt Sorensen December 2012 Bette Rackauskas December 2012 District 3 District 8 Diane R. Bostic December 2012 Paul R. Segobiano December 2012 George O. Wendt December 2012 Scott Black December 2012 District 4 District 9 Ed McKibbin December 2012 Erik Rankin December 2012 Laurie Wollrab December 2012 Susan Schafer December 2012 District 5 District 10 Sonny O’Connor December 2012 Benjamin Owens December 2012 William T. Caisley December 2012 Chuck Erickson December 2012 12 ---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] 13