Transcription
Medina County, OhioCOMPREHENSIVE ANNUAL FINANCIAL REPORTFOR THE YEAR ENDEDDECEMBER 31, 2020
Medina County, OhioComprehensive Annual Financial ReportFor the Year Ended December 31, 2020Mike KovackMedina County AuditorPrepared byThe Medina County Auditor’s Office
INTRODUCTORY SECTION
Medina County, OhioComprehensive Annual Financial ReportFor the Year Ended December 31, 2020Table of ContentsPageI. Introductory SectionTable of Contents . iTransmittal Letter . vElected Officials . xOrganizational Chart . xiGFOA Certificate of Achievement . xiiII. Financial SectionIndependent Auditor’s Report. 1Management’s Discussion and Analysis. 4Basic Financial Statements:Government-wide Financial Statements:Statement of Net Position . 15Statement of Activities . 16Fund Financial Statements:Balance Sheet – Governmental Funds . 18Reconciliation of Total Governmental Fund Balances to NetPosition of Governmental Activities . 19Statement of Revenues, Expenditures and Changes inFund Balances – Governmental Funds . 20Reconciliation of the Statement of Revenues, Expenditures andChanges in Fund Balances of Governmental Funds to theStatement of Activities . 21Statement of Revenues, Expenditures and Changes inFund Balances – Budget (Non-GAAP Basis) and Actual:General Fund . 22Achievement Center Fund . 23School Sales Tax Fund . 24Public Assistance Fund . 25Statement of Fund Net Position – Proprietary Funds . 26Statement of Revenues, Expenses and Changes in Fund Net Position –Proprietary Funds . 27-i-
Statement of Cash Flows – Proprietary Funds . 28Statement of Fiduciary Net Position – Custodial Funds . 30Statement of Changes in Fiduciary Net Position – Custodial Funds . 31Notes to the Basic Financial Statements . 32Required Supplementary Information:Schedule of the County’s Proportionate Share of the Net Pension LiabilityOhio Public Employees Retirement System – Traditional Plan – Last Seven Years . 98Schedule of the County’s Proportionate Share of the Net Pension AssetOhio Public Employees Retirement System – Combined Plan – Last Three Years . 100Schedule of the County’s Proportionate Share of the Net Pension LiabilityState Teachers Retirement System of Ohio – Last Eight Fiscal Years . 102Schedule of the County’s Proportionate Share of the Net OPEB LiabilityOhio Public Employees Retirement System – OPEB Plan – Last Four Years . 104Schedule of the County’s Proportionate Share of the Net OPEB Asset/LiabilityState Teachers Retirement System of Ohio – Last Four Fiscal Years . 105Schedule of the County’s ContributionsOhio Public Employees Retirement System – Last Eight Years . 106Schedule of the County’s ContributionsState Teachers Retirement System of Ohio – Last Ten Years . 108Notes to the Required Supplementary Information . 110Combining and Individual Fund Statements and Schedules:Combining Statements – Nonmajor Governmental Funds:Fund Descriptions. 113Combining Balance Sheet – Nonmajor Governmental Funds. 118Combining Statement of Revenues, Expenditures and Changes inFund Balances – Nonmajor Governmental Funds . 119Combining Balance Sheet – Nonmajor Special Revenue Funds . 120Combining Statement of Revenues, Expenditures and Changes inFund Balances – Nonmajor Special Revenue Funds . 126Combining Balance Sheet – Nonmajor Debt Service Funds . 132Combining Statement of Revenues, Expenditures and Changes inFund Balances – Nonmajor Debt Service Funds . 133Combining Balance Sheet – Nonmajor Capital Projects Funds . 134Combining Statement of Revenues, Expenditures and Changes inFund Balances – Nonmajor Capital Projects Funds . 135- ii -
Combining Statements – Internal Service Funds:Fund Descriptions. 136Combining Statement of Fund Net Position – Internal Service Funds. 137Combining Statement of Revenues, Expenses and Changes inFund Net Position – Internal Service Funds . 138Combining Statement of Cash Flows – Internal Service Funds . 139Combining Statements – Fiduciary Funds:Fund Descriptions. 141Combining Statement of Fiduciary Net Position – Custodial Funds . 142Combining Statement of Changes in Fiduciary Net Position – Custodial Funds . 144Individual Fund Schedules of Revenues, Expenditures/Expenses and Changes inFund Balance/Fund Equity - Budget (Non-GAAP Basis) and Actual:Major Funds:General Fund. 148Achievement Center Fund . 154School Sales Tax Fund . 155Public Assistance Fund . 156Medina County Sewer District Fund . 157Medina County Water District Fund. 158Solid Waste Management Fund . 159Nonmajor Funds:ADAMH Board Fund . 160Auto and Gas Tax Fund . 161Child Support Enforcement Fund . 163Children’s Services Fund . 164Community Development Block Grant Fund . 165Community Housing Improvement Fund . 166Community Oriented Policing Services Fund . 167Community Safety Awareness Fund . 168Computer Fund . 169Coronavirus Relief Fund . 170County Home Fund . 171Courthouse Security Fund . 172Ditch Maintenance Fund . 173Dog and Kennel Fund . 174DRETAC Fund . 175Drug Enforcement Fund . 176Emergency Management Fund . 177Emergency Planning Commission Fund . 178Federal Law Enforcement Fund. 179Indigent Guardianship Fund . 180Juvenile Detention Center Donations Fund . 181Law Library Fund . 182Marriage License Fund . 183Office for Older Adults Fund . 184Ohio Criminal Justice Service Fund . 187Radio Systems Donations Fund. 188- iii -
Real Estate Assessment Fund . 189Revolving Loan Program Fund . 190Safe Communities Fund. 191Shelter Care and Youth Services Fund . 192Sheriff Donations Fund . 193Sheriff Special Projects Fund . 194Social Services Levy Fund. 195Title IV-D Fund . 196Transportation Program Fund . 197Transportation Improvement Fund . 198Victim Assistance Fund . 199Webcheck Program Fund. 200General Obligation Bond Retirement Fund . 201Special Assessment Bond Retirement Fund . 202Achievement Center Construction Fund . 203County Capital Improvements Fund . 204State Issue II Fund . 205Highway ODOT Fund . 206Self Insurance Healthcare Fund . 207Workers’ Compensation Fund . 208III. Statistical SectionTable of Contents . S1Net Position by Component – Last Ten Years . S2Changes in Net Position – Last Ten Years. S4Fund Balances, Governmental Funds – Last Ten Years . S8Changes in Fund Balances, Governmental Funds – Last Ten Years . S10Property Tax Rates - Direct and Overlapping Governments(Per 1,000 of Assessed Value) – Last Ten Years . S12Assessed Valuation and Estimated Actual Values of Taxable Property – Last Ten Years . S24Property Tax Levies and Collections – Last Ten Years . S26Principal Taxpayers – 2020 and 2011 . S27Ratio of Outstanding Debt to Total Personal Income and DebtPer Capita – Last Ten Years. S28Ratio of General Obligation Bonded Debt to Estimated Actual Valueand Bonded Debt Per Capita – Last Ten Years . S30Pledged Revenue Bond Coverage – Last Ten Years. S31Legal Debt Margin – Last Ten Years . S32Computation of Direct and Overlapping Governmental Activities Debt – December 31, 2020 . S34Principal Employers – 2020 and 2011 . S35Demographic and Economic Statistics – Last Ten Years . S36Full-Time Equivalent County Government Employees byFunction/Program – Last Ten Years . S38Operating Indicators by Function/Program – Last Ten Years . S40Capital Assets Statistics by Function/Program – Last Ten Years . S42- iv -
July 28, 2021To the Citizens of Medina County,As Medina County Auditor, I am pleased to once again present Medina County’s Comprehensive AnnualFinancial Report for the year ended December 31, 2020. This report conforms to Generally AcceptedAccounting Principles (GAAP) as applicable to government entities and is reported as promulgated byGASB Statement No. 34. Responsibility for the accuracy of the data presented and the completeness andfairness of the presentation, including all disclosures, rests with the County Auditor. To the best of myknowledge and belief, the enclosed data are accurate in all material respects and are reported in a mannerdesigned to present fairly and completely the financial position and results of the county’s financialactivities.This report enables the County to comply with Ohio Administration Code Section 117-2-03 (B), whichrequires reporting on a GAAP basis, and Ohio Revised Code Section 117.38 which requires countiesreporting on a GAAP basis to file unaudited basic financial statements with the Auditor of State within150 days of year end.I assume full responsibility for the completeness and reliability of the information contained in this report,based upon a comprehensive framework of internal control that we have established for this purpose.Because the cost of internal control should not exceed anticipated benefits, the object is to providereasonable, rather than absolute, assurance that the financial statements are free of any materialmisstatements.Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s reportand provides a narrative introduction, overview, and analysis of the basic financial statements. TheMD&A complement this letter of transmittal and should be read in conjunction with it.Profile of the GovernmentThe County of Medina has operated under the Board of County Commissioners since being incorporatedin 1818. It is located in the northeastern part of the State, which is considered one of the top growth areasin the State. The County of Medina is empowered to levy a property tax on both real and public utilitypersonal property located within its boundaries. It is also empowered by State statute to extend theboundaries of cities, villages and townships by annexation, which it has done from time to time.The Board of County Commissioners is required to adopt a final budget by no later than the first day ofApril of the current year. This annual budget is prepared to the object level within each department for allfunds. Any budgetary modification at this level may only be made by resolution of the CountyCommissioners.-v-
The County provides its citizens with a wide range of services including general government (bothlegislative and executive as well as judicial), public safety, public works, human services, health,conservation and recreation, water and sewer services, and solid waste management. A Court of Appealssituated in Summit County serves Medina County. For financial reporting purposes, the County (theprimary government) includes all agencies, department and organizations that are not legally separatefrom the County. The Medina County Alcohol, Drug Addiction, and Mental Health Services Board andthe Medina County Board of Developmental Disabilities are included as part of the primary government.Local EconomyOnce you have visited Medina County, you will find it is a community rich in traditions and history, andthe kind of area you can move to, become a part of, and stay for a lifetime.Medina County is located in northeast Ohio and is part of the greater Cleveland and Akron metropolitanareas. In 2001, the population of the County was 154,630. By 2020, the population had grown to 184,670.The area is 425 square miles. Medina County includes the entire boundaries of three cities, six villages,and seventeen townships.Medina County has the sixth lowest poverty rate (only 6.5 percent) in the State and has the fifth highestmedian family income in Ohio at 76,600. Medina County is also one of the fastest growing counties inthe State, currently ranking 16th in population. Much of our growth is due to the proximity to theinterstate systems, coupled with our experienced workforce, cooperative business environment andoutstanding public schools.The County exhibits a moderate balance between residential/agricultural lands and commercial/industriallands. Currently, approximately 84 percent of taxes are paid by residential/agricultural owners and 16percent of taxes are paid by industries.Medina County is fortunate to have the Medina County Economic Development Corporation (MCEDC)which aggressively acts to ensure a positive and supportive economic outlook in the County. Inconjunction with the County and local government and business leaders throughout the County, theMCEDC is constantly addressing the issue of growth and the demands it places upon the County servicesand infrastructure.Medina County has been successful in attracting industry to the area to help pay for the education andservice requirements of our expanding population. The objective of MCEDC is “Quality jobs for qualitypeople in quality industries.” Medina County has been very successful in meeting that objective.Long-Term Financial PlanningIn order to make sound financial decisions now and in the future, the Medina County Board ofCommissioners has established principles for budget and financial management. These principles provideguidance for budget development, financial and debt management, and reserves. County agencies areencouraged to maximize the use of State and Federal revenues so as to help preserve general revenues forother needs.Relevant Financial PoliciesThe budget must be structurally balanced so that continuing revenues support continuing expenditures.Budgetary appropriations may not exceed estimated resources, with a balanced budget maintained in eachfund. Agency budget requests are submitted in a program-based format in conjunction with strategicbusiness plans outlining the goals for the following year. Agencies funded through tax levies are requiredto maintain expenditures at or below the estimated revenue collections.-vi-
The budget is controlled at the object code level within a fund and any changes at this level may only bemade by a resolution of the County Commissioners. The budget may be amended or supplemented at anytime during the year upon formal action of the Commissioners. Transfers of cash between funds requirethe Commissioners’ authorization. Encumbered appropriation amounts automatically carry over fromprior years. The Commissioners adopted the County’s 2020 operating budget in December of 2019.Additional information on the County’s budgetary process can be found in Note 2 to the basic financialstatements.Major InitiativesCurrent ProjectsThe County has contracted with Brandstetter Carroll, Incorporated, to design a Courthouse to house theCounty Courts of Common Pleas and related court operations. The County has contracted with GilbaneBuilding Company to act as the Construction Manager at Risk with construction expected to begin duringthe second quarter of 2021. In March of 2021, the County issued 32 million in general obligation bondsto cover the estimated 30 million in construction costs and 2 million in soft costs for this project. Theconstruction of the new courthouse (Phase 1) is expected to be completed by December of 2022, and therenovation of the old courthouse (Phase 2) will be completed during the second quarter of 2023.The Medina County Port Authority has partnered with Lit Communities to create a residential network,named Medina Fiber. This network will provide a fiber-based, residential high-speed network to theresidents of Medina County. This fiber-to-the-home network brings not only voice, internet and videocontent, but also telemedicine and smart-home applications at an affordable price. Medina Fiber will useexisting Medina County fiber network backbone infrastructure to connect neighborhoods across theCounty. The goal of Medina Fiber is to support community programs that enhance residents’ quality oflife and form a foundation for telecommuting, distance learning, and municipal services. Lit Communitiesplans to invest 50 million into this project and started constructing the required infrastructure in Marchof 2021.The County will be resurfacing the parking lot located at the Medina County Jail and Sheriff’s Office andthe Medina County Human Services Center. The combined estimated cost of these two projects is 1million and will be paid for using monies set aside in the County’s Reserve Fund.The Medina County Sanitary Engineer (MCSE) continues to construct utility projects to meet growingutility demand and provide quality potable water and sanitary sewer services, and has initiatedengineering efforts for the construction of a new elevated water storage tank to improve water volumesand pressures to support growth in the northern part of Medina County at an estimated cost of 8 million.July 1, 2021, will represent a milestone in the MCSE’s sanitary 8.5 million force main constructionproject in Sharon Township to direct Medina County customer wastewater to the County’s largestwastewater treatment plant representing a cost-savings to the County and to its customers in dissolving along-standing contractual relationship for wastewater treatment at another non-County facility.-vii-
The Medina County Auditor’s OfficeDepartment Focus Auditor Mike Kovack serves as the Chief Fiscal Officer of Medina County. As theguardian of all County funds, the Auditor maintains the official records of all receipts, disbursement andfunds available.Real Estate The Medina County Auditor’s Office serves as the assessor of all property within MedinaCounty and, under Ohio law, must view and appraise each of the more than 84,000 parcels of real estatein the County every six years.Areas of Responsibility Auditor Kovack’s Office handles a variety of responsibilities vital to the healthyoperation of the County. These responsibilities include:*Tax Settlements*Presentation of the annual tax budgets of the 50 districts in the County*Weights and Measures accuracyEligibility for Tax Reductions Auditor Kovack determines the eligibility of homeowners for various taxreductions under the Homestead Exemption Act, Current Agricultural Use Value, forestry and other taxreduction programs. The Auditor’s Office makes every effort to keep the residents of the County apprisedof the tax reduction programs available.Boards The auditor oversees the Budget Commission which is responsible for reviewing and approvingthe budget for the county, cities, villages, townships and schools. He also oversees the Board of Revisionwhich reviews taxpayers’ requests for revaluation of real estate. He also serves as the Secretary on theData Processing Board.Independent AuditThe Auditor of State’s Office, has issued an unmodified (“clean”) opinion on the Medina Countyfinancial statements for year ended December 31, 2020. The Independent Auditor’s report is located atthe front of the financial section of this report.GFOA Certificate of AchievementThe Government Finance Officers Association of the United States and Canada (GFOA) awarded aCertificate of Achievement for Excellence in Financial Reporting to Medina County, Ohio, for itscomprehensive annual financial report for the year ended December 31, 2019. This marked the thirty-fifthconsecutive year that the County has received this award.In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readableand efficiently organized comprehensive annual financial report whose contents conform to programstandards. Such reports must satisfy both generally accepted accounting principles and applicable legalrequirements.A Certificate of Achievement is valid for a period of one year only. We believe our current reportcontinues to conform to the Certificate of Achievement Program requirements, and we are submitting it toGFOA to determine its eligibility to receive the certificate.The publication of this report represents an important achievement in the ability of Medina County toprovide significantly enhanced financial information and accountability to the citizens of Medina County,its elected officials, County management, and investors. This report continues the aggressive program ofthe County Auditor’s Office to improve the County’s overall financial accounting, management, andreporting capabilities.-viii-
AcknowledgmentsThis report would not have been possible without the dedication, determination and high professionalstandards of Sharon Creswell, MaryBeth Guenther and Kyle Dickel.I would also like to recognize the cooperation of each of the agencies and departments of the County,especially Scott Miller, County Administrator, and Amy Lyons-Galvin, Assistant County Administrator.Finally, I would like to acknowledge the invaluable contributions made by Auditor of Sta
Medina County is located in northeast Ohio and is part of the greater Cleveland and Akron metropolitan areas. In 2001, the population of the County was 154,630. By 2020, the population had grown to 184,670. The area is 425 square miles. Medina County includes the entire boundaries of three cities, six villages, and seventeen townships.
