Homework (AD CAFR)

COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2019

PRINCE GEORGE'S COUNTY MARYLAND

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Year Ended June 30, 2019

Prepared by Office of Finance

This section contains the listing of County officials, the Letter of Transmittal and the Certificate of Achievement for Excellence in Financial Reporting.

INTRODUCTORY SECTION

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Prince George's County, Maryland Comprehensive Annual Financial Report

Year Ended June 30, 2019

INTRODUCTORY SECTION

FINANCIAL SECTION

TABLE OF CONTENTS

Page

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

Listing of County Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi

County Executive and Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Certificate of Achievement for Excellence in Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

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BASIC FINANCIAL STATEMENTS:

Exhibit Page

Government-wide Financial Statements:

A-1 Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

A-2 Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Fund Financial Statements:

A-3 Balance Sheets – Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

A-4 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds . . . . . . . . . . . . . 21

A-5 Statement of Revenues, Expenditures and Changes in

Fund Balance – Budget and Actual – General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

A-6 Statement of Net Position – Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

A-7 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds . . . . . . . . . . . . . . . . 27

A-8 Statement of Cash Flows – Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

A-9 Statement of Net Position – Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

A-10 Statement of Changes in Net Position – Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

REQUIRED SUPPLEMENTARY INFORMATION:

Schedule of Changes in the Net OPEB Liability and Related Ratios – Other Postemployment Benefit Plans . . . . . 99

Schedule of Changes in Net Pension Liability and Related Ratios – County Pension Plans . . . . . . . . . . . . . . . . . 100

Schedule of Funding Proportionate Share of Net Pension Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Schedule of Changes in Pension Liability - LOSAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Schedule of County Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

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COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES:

Exhibit Page

Combining and Individual Fund Statements and Schedules - Primary Government:

B-1 General Fund - Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

B-2 General Fund - Statement of Revenue, Expenditures and Changes in Fund Balance . . . . . . . . . . . . . . . . . . . . 116

B-3 General Fund - Schedule of Revenue - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

B-4 General Fund - Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

C-1 Combining Balance Sheet – Nonmajor Governmental Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131

C-2 Combining Statement of Revenue, Expenditures and Changes in Fund Balances -

Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

C-3 Combining Schedule of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual - Nonmajor Governmental Funds - Special Revenue . . . . . . . . . . . . . . . . . . 133

D-1 Combining Statement of Net Position – Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

D-2 Combining Statement of Revenue, Expenses and Changes in Fund Net Position – Internal Service Funds . . . . . 137

D-3 Combining Statement of Cash Flows – Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

E-1 Combining Statement of Fiduciary Net Position – Pension and Other Post Employment Benefit Trust Funds . . . 141

E-2 Combining Statement of Changes in Fiduciary Net Position – Pension and Other Post Employment Benefit Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

E-3 Combining Statement Plan Fiduciary Position – Pension Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

E-4 Combining Statement of Changes in Plan Fiduciary Position – Pension Trust Funds . . . . . . . . . . . . . . . . . . . . . 144

E-5 Combining Statement of Changes in Position and Liabilities - Agency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . 145

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STATISTICAL SECTION (Unaudited)

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (cont.):

Exhibit Page

F-1

F-2

G-1

Combining Statement of Net Position – Nonmajor Component Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Combining Statement of Activities – Nonmajor Component Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedule of Capital Position Used in the Operation of Governmental Funds – By Function and Activity . . . . . . .

147

149

151

G-2 Schedule of Changes in Capital Position Used in the Operation of Governmental Funds - By Function and Activity 152

G-3 Schedule of Capital Position Used in the Operation of Governmental Funds - By Source . . . . . . . . . . . . . . . . . 153

Table

Financial Trends

1 Net Position By Component - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

2 Change in Net Position - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

3 Fund Balances, Governmental Funds - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

4 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

Revenue Capacity

5 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . 161

6 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

7 Real Property Tax Rates - Overlapping Governments – Cities and Towns - Last Ten Fiscal Years . . . . . . . . . . 163

8 Principal Taxpayers – Current Year and Nine Years Prior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

9 Property Tax Levies and Collections - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

10 Delinquent Charges and Service Charges Receivable by Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

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Table Page Debt Capacity

11 Ratio of Outstanding Debt by Type - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

12 Ratio of Net General Bonded Debt Outstanding – Last Ten Fiscal Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

13 Direct and Overlapping Governmental Activities Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

14 Computation of Direct and Overlapping Governmental Activities Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

15 Computation of Legal Debt Margin - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

16 Revenue Bond Coverage - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

17 Revenue Bond Coverage (For Bond Covenant Purposes) - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . 174

Demographic and Economic Information

18 Demographic and Economic Statistics - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

19 Principal Employers – Current Year and Nine Years Prior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

20 Total Government Employees by Function - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

Operating Information

21 Operating Indicators by Function - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

22 Capital Position Statistics - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

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ELECTED OFFICIALS *

INDEPENDENT AUDITORS

COUNTY EXECUTIVE Angela D. Alsobrooks

Todd M. Turner

COUNTY COUNCIL Chairperson

Derrick Leon Davis

Calvin S. Hawkins, II

Thomas E. Dernoga Jolene Ivey Mel Franklin Rodney C. Streeter

Danielle M. Glaros Deni Taveras Sydney J. Harrison Monique Anderson-Walker

CERTAIN OTHER EXECUTIVE BRANCH APPOINTED OFFICIALS

Major F. Riddick, Jr., Chief Administrative Officer

Tara H. Jackson, Deputy Chief Administrative Officer Joy A. Russell, Chief of Staff

Floyd E. Holt, Deputy Chief Administrative Officer Rhonda Weaver, County Attorney

Mark A. Magaw, Deputy Chief Administrative Officer Stephen J McGibbon, Director of Finance

George L. Askew, MD, Deputy Chief Administrative Officer Stanley A. Earley, Director, Office of Management and Budget Ray Gilley, Deputy Chief Administrative Officer

CliftonLarsonAllen LLP

* As of June 30, 2019

Angela D. Alsobrooks County Executive

Prince George’s County Elected O�cials

Todd M. Turner Chair, District 4

Rodney C. Streeter Vice Chair, District 7

Mel Franklin At-Large

Calvin S. Hawkins, II At-Large

�omas E. Dernoga District 1

Dannielle M. Glaros District 3

Jolene Ivey District 5

Derrick Leon Davis District 6

Monique Anderson-Walker District 8

Sydney J. Harrison District 9

Deni Taveras District 2

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County Executive

Chief Administrative Officer

Other Agencies

Line Agencies Staff Agencies Subject to County Funding and Control

Police Department Office of Law Health Department

Fire/EMS Department Office of Central Services Soil Conservation District

Department of Corrections Office of Management and Budget Office of the State's Attorney

Office of Community Relations Office of Human Resources

Management Board of License Commissioners

Department of Family Services Office of Finance Office of the Sheriff

Department of Housing and

Community Development Office of Information Technology Department of Social Services

Department of Public Works and

Transportation Boards and Commissions County Board of Elections

Department of the Environment Human Relations Semi-Autonomous Agencies

Department of Permitting, Inspections

and Enforcement Citizens Oversight Panel Board of Education

Office of Homeland Security Personnel Board Prince George's Community College

People's Zoning Counsel Memorial Library

Revenue Authority

Redevelopment Authority

Industrial Development Authority

Housing Authority

ORGANIZATIONAL CHART

Executive Branch

Washington Suburban Transit Commission

Washington Suburban Sanitary Commission

Maryland-National Capital Park and Planning Commission

Bi-County Agencies

PRINCE GEORGE'S COUNTY GOVERNMENT

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- THIS PAGE NOT USED. -

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THE PRINCE GEORGE’S COUNTY GOVERNMENT OFFICE OF FINANCE 14741 Governor Oden Bowie Drive * Suite 3200 *Upper Marlboro, Maryland 20772

Telephone: 301-952-5025 * Fax: 301-952-3148 * 711 Maryland Relay Service * www.princegeorgescountymd.gov

ANGELA D. ALSOBROOKS, COUNTY EXECUTIVE STEPHEN J. MCGIBBON, DIRECTOR OF FINANCE

December 31, 2019 The Honorable County Executive, Members of the County Council, and Citizens of Prince George's County, Maryland Ladies and Gentlemen: We are pleased to present the Comprehensive Annual Financial Report (CAFR) of Prince George's County (the County) for the fiscal year ended June 30, 2019 required by local ordinances and state statutes. These ordinances and statutes stipulate that the County annually issue a report on its financial position and activity, and that this report be audited by an independent firm of certified public accountants. The public accounting firm of CliftonLarsonAllen LLP was engaged to perform this task for fiscal year 2019. The auditor’s report on the Basic Financial Statements and the combining and individual fund statements and schedules is included in the Financial Section of this report. The County is also required to undergo an annual single audit in conformity with the provisions above. Information related to the County’s Uniform Grant Guidance Audit, including a Schedule of Expenditures of Federal Awards, the independent auditor’s report on compliance with requirements applicable to each major program and internal control over compliance, and a Schedule of Findings and Questioned Costs will be included in a separately issued Single Audit Report. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a way that presents fairly the financial position and results of operations of the governmental and business-type activities, various funds, and component units of the County. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. Accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental activities require the County to provide a narrative introduction, overview, and analysis to accompany the Basic Financial Statements in the form of the Management’s Discussion and Analysis (the MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditor’s report behind the Financial Section tab.

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PROFILE OF THE GOVERNMENT Prince George's County, Maryland - a body corporate and politic - is a political subdivision of the State of Maryland, which operates under a "home rule" Charter which was adopted in November 1970. The powers of the County are contained in the Charter of Prince George's County, Maryland (the "Charter") and in the Constitution and laws of the State of Maryland. The Charter controls two branches of government. The executive branch enforces the laws and manages the business affairs of the County. It consists of a County Executive (elected by the qualified voters of the entire County) and all other officers, agents, and employees under the County Executive's supervision and authority, including the Chief Administrative Officer who is responsible for the day-to-day administration of the County. The legislative branch of the County consists of a County Council and its staff. The Council shall be composed of nine district members (elected by the qualified voters of each Councilmanic District) and two at-large members (elected by the qualified voters of the entire County). The Charter limits the County Executive and members of the Council to two consecutive four-year terms in office. Council members serving two consecutive terms as district members shall be eligible to run for an at-large seat on the Council and serve for no more than two consecutive terms as an at-large member. The judicial branch is independent and separate from the other branches of government and gets its authority from the Maryland Constitution. It is primarily comprised of the Court System and the State’s Attorney’s Office. When Prince George's County was formed, it included all of that part of Maryland lying between the Potomac and Patuxent Rivers, extending from Mattawoman and Swanson Creeks on the south to the Pennsylvania line on the north, thus encompassing the area which today is comprised of the District of Columbia, Montgomery, Frederick, Washington, Allegany, and Garrett Counties, the northwest half of Carroll County, and that part of Charles County lying north of Mattawoman Creek. Named for Prince George of Denmark, husband of Princess Anne, heir to the throne of England, our County was founded in 1696. Between 1696 and 1800, Prince George's County was reduced to its present size by acts of Maryland's General Assembly. Prince George’s County is the second largest jurisdiction in the State of Maryland (and the third largest in the metropolitan Washington area) with a population of nearly 909,308 residents. It encompasses 483 square miles that borders Washington, D.C., Montgomery, Howard and Anne Arundel Counties and is 37 miles south of the City of Baltimore. The County’s centralized location and its rich diversity has attracted more than 15,760 businesses to its twenty-seven unique municipalities. Having a robust transportation system allows easy access to the region’s national and international airports and to the Port of Baltimore.

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County residents enjoy a diversity of leisure options, including a park system encompassing over 29,000 acres of parkland and open space. Leisure facilities and services provided by the Maryland-National Capital Park and Planning Commission (the “M-NCPPC”) include a sports and concert facility (Show Place Arena); a 10,000 seat AA Minor League Baseball stadium (Bowie Baysox) and community centers; recreational buildings; aquatic facilities; ice rinks; golf courses; an equestrian center; tennis courts; a performing arts and cultural center; and a gymnastic center. Other major recreational facilities include an 87,052-seat National Football League stadium (FedEx Field – Home of the Washington Redskins); an amusement park (Six Flags America) featuring rides, attractions and shows; a 240,000-square foot Olympic-quality recreational Sports and Learning Complex, and National Harbor home to MGM Casino, the Gaylord Resort and Convention Center, Tanger Outlets, and the Waterfront. In addition, recreational and cultural opportunities of the nation’s capital, Washington, D.C., are located just across the County line. The County is home to six universities and colleges, including the flagship campus of the University System of Maryland.

THE REPORTING ENTITY AND ITS SERVICES The financial reporting entity (the County) includes all the funds of the Primary Government (i.e., Prince George's County, Maryland as legally defined). It also includes Component Units for which the Primary Government is financially accountable. Discretely presented Component Units are reported in a separate column in the Basic Financial Statements Section to emphasize that they are legally separate from the Primary Government and to differentiate their financial position and results of operations from those of the Primary Government. The County's eight Component Units are the following: Board of Education of Prince George's County, Housing Authority of Prince George's County, Industrial Development Authority of Prince George's County, Prince George's County Memorial Library System, Prince George's Community College, Prince George's Community Television Inc., Revenue Authority of Prince George’s County, and Redevelopment Authority of Prince George’s County. The Washington Suburban Sanitary Commission (WSSC), the Maryland-National Capital Park and Planning Commission (M-NCPPC), the Washington Suburban Transit Commission (WSTC), and the Washington Metropolitan Area Transit Authority (WMATA) are joint ventures as disclosed in the accompanying notes to the financial statements. The Metropolitan Washington Council of Governments (COG) is reported as a jointly governed organization rather than a joint venture. Dimensions Healthcare Corporation (doing business as the University of Maryland Capital Region Health) and the Economic Development Corporation are deemed to be neither component units, nor joint venture activities as such, and accordingly are excluded from this report. The services provided by the Primary Government include police, homeland security, fire and emergency services; health, family and social services; public works and environmental service programs; and court and correctional services. The Primary Government also adopts and maintains building codes; regulates licenses and permits; collects taxes and revenue; maintains records; conducts elections; and collects, recycles and disposes of refuse. Services provided by the component units and partially financed by the Primary Government include: elementary, secondary, and community college education; public and private building construction; community building projects; projects devoted wholly or partially for public use that will stimulate employment or economic growth; library services; planning services; parking facilities; public and private residential housing; and public access to cable television programming. Public transit, parks and recreational facilities, and water and sewer services are provided by various joint venture entities.

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MANAGEMENT INITIATIVES

The County has instituted an integrated and comprehensive performance management system, that includes regular performance reporting and analysis and issue-focused, executive-level sessions and studies. It strengthens data-driven managerial and budgetary decisions, ensuring resources are utilized efficiently and effectively. In addition, it is a systematic approach that enables the County’s leadership to develop collaborative relationships; assess service delivery; identify cost-saving strategies; and improve the effectiveness of services.

The County’s vision together with its mission statement and principles guide the government’s services to its residents, businesses and visitors. It also serves as the basis for spending priorities. Its mission is to transform the quality of life for its residents, visitors and businesses by providing excellent services that achieve high levels of customer satisfaction through integrity, accountability and convenience.

In order to transform the vision into a reality, the County focused its resources on seven priorities: (1) a thriving economy, (2) an excellent education system, (3) safe neighborhoods, (4) quality health care, (5) effective human services, (6) a clean and sustainable environment, and (7) high performance government operations. There will be a focused effort by the County to modernize service delivery in government, by increasing technology utilization, attracting and retaining a dynamic and experienced workforce, and adapting processes to facilitate this effort. Added emphasis will be placed on youth development efforts, to prepare future generations for these and other opportunities, and to ensure the sustainability of these priorities.

FACTORS AFFECTING FINANCIAL CONDITION

Economic Development is a core priority of Prince George’s County’s commitment to ensuring a high quality of life and securing the long-term viability of the County. The County has made notable progress since launching the Economic Development Incentive (EDI) Fund to assist the County in expanding its tax base; attracting businesses, retaining existing businesses; and growing job opportunities through loans, grants and guarantees to businesses throughout the County. These loans have leveraged over a billion dollars in total private investments, and assisted in the creation and/or retention of approximately 12,800 jobs in Prince George’s County.

Contracting opportunities with government, research, technology and defense industry anchors contribute to a growing economy. There are sixteen federal agencies mostly with research-focused activities within the County. These agencies attract technology companies as partners/contractors for their operations. The NASA Goddard Space Flight Center, the USDA Beltsville Agricultural Research Center, the USDA Animal and Plant Health Inspection Service, the Army Research Laboratory, the Institute for Defense Analysis, the Internal Revenue Service, the Bureau of Economic Analysis and the U.S. Census Bureau Supercomputer Center support the local technology business base. The University of Maryland at College Park is building several new facilities, some for national security-related tenants, on its 124-acre Enterprise Campus research park.

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0.0%

2.0%

4.0%

6.0%

8.0%

County Unemployment Rate (Source: U.S. Department of Labor Bureau of Labor Statistics)

FY2015 FY2016 FY2017 FY2018 FY2019

JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE

The unemployment rate for the County fell to 4.0% for fiscal year 2019 from 4.3% for fiscal year 2018.

The County’s per capita personal income for calendar year 2018 was $49,420 compared to $47,348 in calendar year 2017. The labor force in fiscal year 2019 was 505,155 compared to 505,240 in fiscal year 2018.

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$240.0

$260.0

$280.0

$300.0

$320.0

$340.0

2015 2016 2017 2018 2019

Median Sales Price for Existing Homes (Source: Maryland Department of Assessments and Taxation)

($ in thousands)

The County’s median home sales price of $330,000 for fiscal year 2019 was 3.4% higher than in fiscal year 2018. Median sales prices have steadily increased since 2015.

LOCAL ECONOMY

County revenue sources such as taxes, fees, licenses and permits, service charges, use of money and property, etc. are used to fund the majority of government programs and services. Real property taxes represent the largest portion of County source funding for government operations, increasing in FY2019 by 7.1%. Local income tax is another large revenue source for the County. Income tax collections along with the State Income Disparity Grant increased in FY2019 by .3% affirming a recovery in the local job market and regional economy. The County’s real estate market is continuing to show improvement with combined Transfer and Recordation tax receipts increasing by 18.3%. Licenses and permit fee revenue increased by 6.9% in FY2019. This revenue includes building, grading, and street use and other permits, along with revenue from video lottery terminals and table games generated from the MGM and National Harbor.

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LONG-TERM FINANCIAL PLANNING The County implements its long-range financial planning policies using two methods – (1) The legislative approval of its six-year capital improvement program (CIP) budget, and (2) Internal financial forecasting and modeling. These practices are essential in order to plan for potential liabilities early and allocation of resources accordingly. This ensures that the County policies and/or decisions do not lead to unexpected financial burdens and measures the fiscal impact of present day decisions on long-term outcomes, thus maintaining long-term financial sustainability.

FINANCIAL POLICIES The County maintains an extensive budgetary control system. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the County Council. Budgetary control in the General Fund is maintained at the department/agency level and at the fund level for all other funds. No County liability shall be incurred or contracted by any department, agency, or employee, and no bill or invoice shall be approved or paid, unless authorized by the Council budget adoption or specific appropriation to cover payment out of public funds. Any person willfully violating this provision shall be deemed responsible for the contract, debt, or expenditure. Any Department Head allowing such actions is subject to disciplinary action by the Council. The County Executive is authorized to transfer budget amounts up to $250,000 within any department or fund; however, the County Council must approve any revisions that alter the total budgeted expenditures of any department or fund or transfer in excess of $250,000. No agency of the Primary Government shall expend, or contract to expend, more than the amounts appropriated in the budget for each fiscal year. The Component Units may transfer budget appropriations within certain limits, but generally may not alter total appropriations without a budget amendment by the County Council. The County has implemented a system of performance measurements, and many agencies are developing and tracking improved performance measures. Other agencies are tracking financial and program performance on a routine basis with a special emphasis on efficiency and outcome measures. The data is used to guide daily management decisions and to focus on operational policies.

Prince George’s County, Maryland received AAA bond ratings from Moody’s Investor Services Inc., Fitch Ratings, and S&P Global Ratings, despite continuing economic challenges due to the ups and downs in market conditions and having to operate under various tax rate constraints. This reflects the County’s continued sound financial management, the ongoing and significant economic development occurring and its extremely diverse local economy.

xviii

Management of the County is responsible for establishing and maintaining effective internal controls designed to ensure that the assets of the County are protected from loss, theft or misuse, and to ensure that accurate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state, and local financial assistance, the County is also responsible for establishing and maintaining effective internal control over compliance with requirements, laws, and regulations applicable to these programs. The internal control structure is subject to periodic evaluation by management and the County’s Office of Audits and Investigations. The Primary Government maintains an Office of Audits and Investigations as required by Charter. The duties and responsibilities of this office include: annual financial audits of all agencies receiving or disbursing County funds; special audits of the accounts of any such agency upon request by the Council or County Executive; special audits of the accounts maintained by various County officers upon their death, resignation, removal, or expiration of term; and performance audits of any agency which is a recipient of funds appropriated or approved by the Council. As demonstrated by the statements and schedules included in the Financial Section of this report, the County continues to meet its responsibility for sound financial management.

AWARDS AND ACKNOWLEDGEMENTS Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Prince George's County, Maryland for its comprehensive annual financial report for the fiscal year ended June 30, 2018. This was the 39th consecutive year (fiscal years ended 1980 – 2018) that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a one-year period. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Distinguished Budget Presentation In addition, the County also received the GFOA's Award for Distinguished Budget Presentation for its annual appropriated budget for the fiscal year beginning July 1, 2018. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories including policy documentation, financial planning, and organization.

This section contains the Independent Auditors’ Report, Management’s Discussion and Analysis (MD&A), the Basic Financial Statements, Required Supplementary Information, and the Combining and Individual Fund Statements and Schedules.

FINANCIAL SECTION

1

INDEPENDENT AUDITORS' REPORT The Honorable County Council Prince George’s County, Maryland

Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Prince George’s County, Maryland (the County), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Prince George’s County Memorial Library System and Prince George’s Community Television, Inc., which represent 1 percent, 3 percent, and 1 percent, respectively, of the assets and deferred outflows, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Prince George’s County Memorial Library System and Prince George’s Community Television, Inc., is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of Prince George’s Community Television, Inc. were not audited in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the general fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America.

The Honorable County Council Prince George’s County, Maryland

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Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of changes in net other postemployment benefits liability and related ratios, the schedule of changes in net pension liabilities and related ratios, and the schedule of county contributions as listed in the accompanying table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund statements and schedules and other information including the introductory section and statistical tables as noted on the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical section as listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 31, 2019, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance.

a CliftonLarsonAllen LLP Baltimore, Maryland December 31, 2019

MANAGEMENT’S DISCUSSION AND

ANALYSIS

PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS

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Management is pleased to present this narrative overview and analysis of the financial activities of Prince George’s County, Maryland (the County) for the fiscal year ended June 30, 2019. We encourage the readers to consider the information presented here in conjunction with the additional information that we furnished in our letter of transmittal. The following discussion focuses on the County’s primary government and, unless otherwise noted, component unit information is not included.

FINANCIAL HIGHLIGHTS  The County’s liabilities and deferred inflows exceed assets and deferred outflows at June 30, 2019 by $2.1 billion (net deficit). The primary government has an

unrestricted net deficit balance of $3.8 billion, partially due to debt related to assets owned by its component units - the Board of Education and the Community College and the reporting requirements for Pension and OPEB liabilities ($1.5 billion, $1.7 billion).

 The County’s total net position decreased by $174.2 million. Net position of governmental activities decreased $185.2 million, while the net position of business-type

activities increased $11 million.  At June 30, 2019, the County’s governmental funds report combined ending fund balances of $979.5 million, an increase of $170 million. Of this amount, $236

million remains in the General Fund of the County as unassigned, which represents approximately 10.8% of total general fund expenditures for fiscal year 2019.

OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County’s financial statements, which include government-wide and fund statements, as well as notes to the financial statements. Government-Wide Financial Statements Similar to private-sector reporting, government-wide financial statements are designed to provide a broad overview of the financial position of the County. They include a statement of net position and a statement of activities. These statements appear on pages 17 and 18 of this report. The statement of net position shows the County’s assets and deferred outflows less its liabilities and deferred inflows at June 30, 2019. The difference between the assets, deferred outflow of resources, liabilities and deferred inflow of resources is reported as net position. Changes in net position over time may be helpful in indicating an improving or deteriorating financial position. Additionally, nonfinancial factors, such as a change in the County’s property tax base or the condition of the County’s facilities, should be considered to assess the overall health of the County. The statement of activities follows the statement of net position and presents information on how net position changed during the fiscal year. The statement presents all underlying events, which give rise to the change, regardless of the timing of the related cash flows. Both statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The government-wide financial statements of the County (known as the primary government) include general government, public safety, public works and transportation, health, public welfare, and education. The government-wide financial statements also include the legally separate component units for which the County is financially accountable. Financial information for these component units is reported separately from the primary government.

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Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the County government can be divided into three categories: governmental, proprietary and fiduciary. Governmental funds – Governmental funds, presented on pages 19 to 24, essentially account for the same functions as those reported under the governmental activities in the government-wide financial statements. However, this set of financial statements focuses on events that produce near-term inflows and outflows of spendable resources as well as on the balances of spendable resources available at the end of the fiscal year and is a narrower focus than the government-wide statements. This information may be useful in evaluating the County’s near-term financing requirements and available resources. By comparing functions between the two sets of statements for governmental funds and governmental activities, readers can discern the long-term impact of near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. Governmental funds individually presented in the County’s basic financial statements include three major funds: the General Fund, the Capital Projects Fund, and the Federal and State Aided Programs Fund. The remaining three funds have been combined and presented in one column as “Other Governmental Funds.” Combining statements for these other governmental funds are presented on pages 131 to 134 of this report. Proprietary funds – The County maintains two different types of proprietary funds: enterprise and internal service funds. These funds are included on pages 25 to 29 of this report. Enterprise funds are used to report, in detail, the same information presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for solid waste, stormwater management, and water protection and restoration. The solid waste and stormwater activities are considered major funds of the County. Internal service funds are an accounting device used to accumulate and allocate costs internally for the County. The County uses internal service funds to account for self-insurance, vehicle maintenance, and computer services. Because the internal service funds predominantly benefit governmental rather than business–type functions, they have been included within the governmental activities in the government-wide statements. The internal service funds are presented in total in the fund financial statements but may be viewed separately in the combining statements on pages 135 to 140 in this report. Fiduciary funds – The County uses fiduciary funds to account for resources held for the benefit of parties outside of the County government. Although these funds are presented with the fund statements, they do not appear in the government-wide financial statements because the resources of these funds are not available to support the programs of the County. The accounting method used for fiduciary funds is much like that used for proprietary funds. These funds are presented on pages 30 and 31 of this report.

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Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in both government-wide and fund financial statements. Notes are presented on pages 33 to 98 of this report. Other Information This report also includes required supplementary information related to the funding progress, net pension liability and contributions of the County’s Trust Funds. This information is included on pages 99 through 114. Combining and individual statements and schedules referred to earlier, which present more detailed views of the General Fund, nonmajor governmental funds, internal service funds, fiduciary funds, and nonmajor component units are presented on pages 115 to 150. Additional information about the County, which may be of interest to the reader, is found in the Statistical Section of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, changes in net position over time is a useful indicator of a business enterprise's financial position. The County’s total net position as of June 30, 2019 was a deficit of $2.1 billion. Investment in capital assets such as land, roads, bridges, buildings, machinery and equipment accounts for $1.4 billion of net position. The amount is presented less any outstanding debt related to the acquisition and accumulated deprecation of those assets. The County uses capital assets to provide services to the citizens, and consequently, these assets are not available for future spending. Although assets are reported net of related debt, the capital assets themselves cannot be used to liquidate that liability, and other resources will be needed to repay any associated debt.

PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS

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2019 2018 2019 2018 2019 2018

Current and other assets $ 1,565,981 1,285,876$ 220,838$ 207,386$ 1,786,819$ 1,493,262$ Capital assets 2,541,141 2,487,290 508,036 460,397 3,049,177 2,947,687

Total assets 4,107,122 3,773,166 728,874 667,783 4,835,996 4,440,949

Deferred outflow of resources 363,880 76,586 11,951 5,249 375,831 81,835

Long-term liabilities 5,777,427 5,204,531 496,184 444,638 6,273,611 5,649,169 Other liabilities 661,749 562,066 47,714 47,191 709,463 609,257

Total liabilities 6,439,176 5,766,597 543,898 491,829 6,983,074 6,258,426

Deferred inflow of resources 357,662 223,783 11,159 6,490 368,821 230,273 Net position

1,201,344 1,266,262 160,097 138,997 1,361,441 1,405,259 Restricted 304,598 258,412 106,301 82,325 410,899 340,737 Unrestricted (deficit) (3,831,778) (3,665,302) (80,630) (46,609) (3,912,408) (3,711,911)

Total net position $ (2,325,836) (2,140,628)$ 185,768$ 174,713$ (2,140,068)$ (1,965,915)$

Schedules of Net Position

(in thousands)

Net investment in capital assets

Governmental activities Business-type activities Total

June 30, 2018 and 2019

Restricted net position represents resources subject to external restriction on how they may be used to meet the County’s ongoing obligations to citizens and creditors. As indicated earlier, the County’s governmental and business-type activities unrestricted net position deficit is attributable to outstanding debt that has been issued on behalf of the County’s component units, pension and OPEB liabilities. The majority of this debt is for the Board of Education as the County continues to issue bonds to finance school construction projects. Counties in the State of Maryland issue debt for school construction; however, the buildings are owned by the County’s Board of Education. The following represents revenues by source and expenses by function of primary government for the years ended June 30, 2019 and 2018.

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PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS

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Governmental Activities

Net position for the County’s governmental activities decreased by approximately $185.2 million in fiscal year 2019. The County’s total revenue from governmental activities was approximately $2.3 billion in fiscal year 2019 (approximately $99.2 million greater than fiscal year 2018.) Property and income taxes make up approximately 66% of this revenue. Property taxes increased by approximately 32.4 million or 4%. The growth is related to an increase in the assessable value of 16.8% above the property tax assessments of three years ago. Income tax increased by approximately $85 million or 14.2%. This is a result growth in the National Harbor surrounding areas and the job market.

500

550

600

650

700

2017 2018 2019

Income Taxes (in millions)

PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS

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Transfer and recordation taxes ($169 million), telecommunications taxes ($23.7 million), and energy taxes ($83.9 million) comprise the majority of the remaining other taxes. Other taxes of ($32 million) make up the balance of total taxes. The $26.3 million decrease in transfer and recordation taxes relates to a decrease in home sales of 6.2% in fiscal year 2019 compared to fiscal year 2018.

0

50

100

150

200

2017 2018 2019

Transfer and Recordation (in millions)

Recordation Transfer

The County’s total expense from governmental activities was approximately $2.6 billion in fiscal year 2019 (approximately $119 million increase from fiscal year 2018.) The categories experiencing the largest increases were Public Safety (approximately 76.5 million – 10.4% increase). Some of the factors affecting the changes include:

 Public safety expenditures increased by $76.5 million, mainly driven by equipment purchases and overtime  General Government increased $32.5 million mainly driven by increased expense of $32 million in Non-Departmental.

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Revenues: 2019 2018 2019 2018 2019 2018

Program Revenues: Charges for services $ 261,508 $ 265,923 $ 117,563 $ 118,715 $ 379,071 $ 384,638

113,833 116,733 - - 113,833 116,733 5,795 5,727 - 19 5,795 5,746

General revenue: Property taxes 896,548 864,163 47,594 45,228 944,142 909,391 Income taxes 683,738 598,697 - - 683,738 598,697 Other taxes 308,522 330,422 - - 308,522 330,422 Other revenues 25,330 14,403 7,529 5,812 32,859 20,215

Total revenues 2,295,274 2,196,068 172,686 169,774 2,467,960 2,365,842 Expenses:

General government 433,847 401,386 - - 433,847 401,386 Public safety 820,674 744,141 - - 820,674 744,141 Environmental 5,865 6,548 - - 5,865 6,548 Health and Human Services 94,869 93,625 - - 94,869 93,625 Infrastructure and Development 132,006 150,348 - - 132,006 150,348 Education 909,259 908,578 - - 909,259 908,578 Interest on long-term debt 83,962 64,084 - - 83,962 64,084 Solid waste - - 98,471 97,292 98,471 97,292 Stormwater management - - 54,508 52,430 54,508 52,430 Water Protection and Restoration - - 8,652 4,679 8,652 4,679

Total expenses 2,480,482 2,368,710 161,631 154,401 2,642,113 2,523,111 Change in net position (185,208) (172,642) 11,055 15,373 (174,153) (157,269) Net position - beginning of year (2,140,628) (1,015,668) 174,713 212,294 (1,965,915) (803,374) Prior period adjustment - (952,318) - (52,954) (1,005,272) Net position - end of year $ (2,325,836) $ (2,140,628) $ 185,768 $ 174,713 $ (2,140,068) $ (1,965,915)

Schedule of Changes in Net Position For the years ended June 30, 2018 and 2019

(in thousands)

Operating grants and contributions Capital grants and contributions

Governmental activities Business-type activities Total

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Business-type Activities

Business-type activities increased the County's net position by approximately $11 million in fiscal year 2019. Key elements of this increase are as follows:

 Change in net position for the Watershed Protection and Restoration and Solid Waste Funds is $7,883,340 and $2,933,036 respectively.

FINANCIAL ANALYSIS OF GOVERNMENT FUNDS

Governmental Funds

As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. In assessing the County’s financing requirements, unassigned fund balance is a particularly useful measure of net resources available for spending at the end of the fiscal year.

As of June 30, 2019, County governmental funds reported combined fund balances of $979.5 million, an increase of $169.6 million in comparison to the prior year balances. Restricted Governmental fund balance was $601.3 million which includes, $172.1 million for a charter-mandated contingency reserve (Rainy Day Fund), $3.1 million for drug enforcement, $330.1 for Capital Projects $59 million for debt service and $37 million for other purposes.

The General Fund is the chief operating fund of the County. At June 30, 2019, total fund balance in the general fund was $580.1 million of which $235.6 million was unassigned. The General Fund balance increased by $52.1 million as a result of current fiscal year operations. The following key factors were responsible for the changes:

 Total revenues increased $95.4 million from fiscal year 2019, which exceeded the final budget by $31.5 million. The majority of the increase ($85 million) related to the tax revenue which was discussed earlier in the governmental activities’ analysis

 Total expenditures and transfers out increased by $123 million or approximately 6.0 percent. The County issued $165.4 million in debt for equipment financing in fiscal year 2019 resulting in increased debt service payments of $30 million.

 Transfers increased $8 million in fiscal year 2019.

 State mandated contribution to the Prince George’s County Public Schools increased by $24.3 million.

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Capital Projects Fund expenditures totaled $238.9 million for fiscal year 2019 compared to $264 million in fiscal year 2018. There was a decrease of $12.3 million in spending on Board of Education projects including a decrease of $12.4 million for Fairmount Heights High School Project and a decrease of $12.3 million for the Tulip Grove ES Replacement Project. The Board of Education decreases were partially offset by the $3 million increase in spending related to the Major Repairs Project and $9.1 million spending increase for the Systemic Replacements 2 Project. Prince George’s Community College spending also decreased by $17.9 million including a decrease of $8.1 million for the Queen Anne Academic Center Project and a decrease of $10.1 million for Culinary Arts Center Project. The County spending decreased on Regional Administration Building Project by $13.2 million. The County’s spending decrease was offset by a $21.4 million increase in spending for the Driver Training Facility & Gun Range Project.

Expenditures in the Non-Major Governmental Funds increased by $23.8 (15 percent) in comparison to fiscal year 2019. The main driver is $19.3 expenditures in the Debt Service Fund.

Proprietary Funds

Proprietary fund statements provide more detail for the County’s business-type activities than the government-wide financial statements.

Enterprise Funds. At June 30, 2019, the total net position increased in the Solid Waste and Watershed Protection and Restoration Fund by $2.9 million and $7.9 million, respectively. Whereas, the total net position for the Stormwater Management Fund decreased $.3 million.

BUDGETARY HIGHLIGHTS

The County’s final General Fund budget was increased by $11 million from the original budget. The additional funding was used for public safety overtime & fringe, various Non-Departmental expenditures such as the Summer Youth initiatives. The $11 million increase in funding was funded completely by the use of fund balance. No additional revenue appropriated.

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CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets. The County’s investment in capital assets for its governmental and business-type activities as of June 30, 2019 was $3 billion (net of accumulated depreciation.) This investment in capital assets includes land, buildings and improvements, equipment and vehicles, road networks, bridges, landfill property in service, and stormwater property in service.

Major capital asset events during the year include the following:  Buildings and improvements increased by $7.0 million including $5.8 million for Regional Administration Building.  $38.0 million in road network additions including developer contributions of $34.7 million.  $24.1 and $15.0 million added to construction in progress for the Driver Training Facility & Gun Range and the Police Training and Administrative

Headquarters, respectively.  $26.3 million added to construction in progress for the Watershed Implementation Plan.  Landfill property in service increased by $18 million.

The County’s capital assets, net of accumulated depreciation, are presented in the following table as of June 30, 2019 and 2018:

Capital Assets as of June 30 (net of accumulated depreciation)

2019 2018 2019 2018 2019 2018

Land $ 109,656,583 $ 106,500,344 $ 27,072,977 $ 27,072,977 $ 136,729,560 $ 133,573,321 Buildings and improvements 511,423,109 520,177,115 15,101,154 15,960,101 526,524,263 536,137,216 Equipment 50,802,841 47,825,722 1,725,919 1,729,364 52,528,760 49,555,086 Infrastructure 1,692,061,551 1,687,406,224 - - 1,692,061,551 1,687,406,224 Landfill property in service - - 14,631,864 2,696,672 14,631,864 2,696,672 Stormwater property in service - - 125,461,452 129,851,323 125,461,452 129,851,323 Construction in progress 177,197,275 125,380,851 324,043,040 283,086,503 501,240,315 408,467,354 Total $ 2,541,141,359 $ 2,487,290,256 $ 508,036,406 $ 460,396,940 $ 3,049,177,765 $ 2,947,687,196

Governmental activities Business-type activities Total

Additional information on the County’s capital assets is located in note 7 on pages 58 to 62 of this report.

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Long-term debt. At the end of the current fiscal year, the County had total bonded debt outstanding of $2.2 billion.

Outstanding Debt

2019 2018 2019 2018 2019 2018

General obligation bonds $ 1,903,399,373 1,746,683,304 336,495,627 282,701,696 2,239,895,000 2,029,385,000 Total $ 1,903,399,373 1,746,683,304 336,495,627 282,701,696 2,239,895,000 2,029,385,000

Governmental activities Business-type activities Total

Total bonded debt of the County increased by $210.5 million (10.3%) from the previous fiscal year due to issuance of General Obligation and Revenue Bonds.

The underlying ratings of the County’s general obligation bonds as of June 20, 2019, were as follows:

Current Rating

Standard & Poor's AAA Moody's Investors Service, Inc. Aaa Fitch Ratings AAA

Additional information on the County’s long-term debt is located in note 13 starting on page 84 of this report.

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

Factors considered in preparing the County’s budget for fiscal year 2019 included:

 Property values grew in 2019. Group 1’s assessable value increased by 16.8% in January 2019 from three years ago, resulting in the growth of property tax revenues.

 Home sales decreased by 6.2% in fiscal year 2019 compared to fiscal year 2018. The average median sale price rose to $294,500 in FY 2019, up from $280,400 in FY 2018.

 Foreclosures decreased by 15.5% in the second quarter of fiscal year 2019 compared to the second quarter of fiscal year 2018 for a total of 2,759 events for the first two quarters. The number of foreclosures in the first half of fiscal year 2019 decreased on a quarterly basis from 1,430 in the first quarter to 1,329 in the second quarter.

 General Fund income tax revenue rose to $683.7 million in fiscal year 2019, a 11.9% increase from fiscal year 2018.

During fiscal year 2019, the unassigned fund balance in the General Fund was $235.5 million. The County has appropriated $36.9 million in the use of General Fund balance for fiscal year 2020.

Requests for Information

This financial report is designed to provide a general overview of Prince George’s County, Maryland for those individuals with an interest in our government’s finances. Address questions concerning any of the information provided in this report or requests for additional information to the Office of Finance, Accounting Division, Attention: Assistant Director of Accounting, 14741 Governor Oden Bowie Drive, Suite 3151, Upper Marlboro, MD 20772. You can also reach us by fax at 301.952.3043 or send an email to: [email protected].

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BASIC FINANCIAL STATEMENTS

This sub-section contains the Basic Financial Statements and the Notes to the Financial Statements.

Primary Government Board of

Education of Other Total Total Governmental Business-type Prince George's Component Component Reclassifications Reporting

Activities Activities Total County Units Units (See note 1-r) Entity ASSETS

Cash and investments 564,359,399$ $ 27,488,618 $ 591,848,017 $ 358,540,792 $ 80,715,068 $ 439,255,860 $ - $ 1,031,103,877 Cash with fiscal agents 27,798,317 1,590,955 29,389,272 - - - - 29,389,272 Receivables (net of allowances

for uncollectibles): Taxes 8,536,574 695,013 9,231,587 - - - - 9,231,587 Accounts 58,044,142 3,878,252 61,922,394 38,428,444 30,852,922 69,281,366 - 131,203,760 Notes 47,451,755 - 47,451,755 - 405,900 405,900 - 47,857,655

Accrued interest receivable 3,564,443 660,519 4,224,962 - 11,744 11,744 - 4,236,706 Internal balance 12,505,500 (12,505,500) - - - - - - Due from component units 7,999,789 - 7,999,789 - - - 7,999,789 Due from primary government - - - 44,859,643 7,809,203 52,668,846 - 52,668,846 Due from other governmental units 236,902,639 785,618 237,688,257 37,676,345 3,167,953 40,844,298 - 278,532,555 Inventories 3,807,337 - 3,807,337 6,860,142 140,906 7,001,048 - 10,808,385 Prepaid costs and deposits 361,570 - 361,570 714,682 3,011,825 3,726,507 - 4,088,077 Restricted assets:

Cash and investments 594,599,670 198,243,754 792,843,424 - 21,220,487 21,220,487 - 814,063,911 Property held for resale - - - - 15,225,497 15,225,497 - 15,225,497

Capital assets: Nondepreciable assets 286,853,859 351,116,017 637,969,876 80,673,632 187,893,332 268,566,964 - 906,536,840 Depreciable assets, net 2,254,287,500 156,920,389 2,411,207,889 1,331,305,701 186,557,337 1,517,863,038 - 3,929,070,927

Other assets 50,000 - 50,000 - 30,361,996 30,361,996 - 30,411,996 Total assets 4,107,122,494 728,873,635 4,835,996,129 1,899,059,381 567,374,170 2,466,433,551 - 7,302,429,680

DEFERRED OUTFLOW OF RESOURCES Pension and LOSAP deferrals 164,364,639 4,792,962 169,157,601 48,536,007 7,143,418 55,679,425 - 224,837,026 OPEB deferrals 199,515,500 6,609,500 206,125,000 - - - - 206,125,000 Deferred charge on refunding - 548,304 548,304 - - - - 548,304

Total deferred outflow of resources 363,880,139 11,950,766 375,830,905 48,536,007 7,143,418 55,679,425 - 431,510,330 LIABILITIES

Accounts payable 106,539,133 18,508,731 125,047,864 67,844,960 20,346,157 88,191,117 - 213,238,981 Retainages payable 8,785,856 3,044,992 11,830,848 5,385,072 - 5,385,072 - 17,215,920 Accrued liabilities 65,539,391 1,232,105 66,771,496 164,490,825 539,717 165,030,542 - 231,802,038 Unearned revenue 127,734,923 708,987 128,443,910 19,828,309 4,438,808 24,267,117 - 152,711,027 Matured bonds and interest payable - 4,126,982 4,126,982 - 889,492 889,492 - 5,016,474 Deposits 62,654,078 83,713 62,737,791 - 451,323 451,323 - 63,189,114 Due to primary government - - - 1,084,656 6,915,133 7,999,789 - 7,999,789 Due to component units 52,668,846 - 52,668,846 - - - - 52,668,846

Noncurrent liabilities: Due within one year 237,826,939 20,008,563 257,835,502 37,730,931 3,045,635 40,776,566 - 298,612,068 Due in more than one year 5,777,427,192 496,184,035 6,273,611,227 2,487,727,995 201,186,199 2,688,914,194 - 8,962,525,421 Total liabilities 6,439,176,358 543,898,108 6,983,074,466 2,784,092,748 237,812,464 3,021,905,212 - 10,004,979,678

OPEB deferrals 259,254,748 8,594,252 267,849,000 288,493,000 6,662,534 295,155,534 - 563,004,534 Pension and LOSAP deferrals 87,769,571 2,565,192 90,334,763 23,850,536 - 23,850,536 - 114,185,299 LOSAP deferrals 10,523,972 - 10,523,972 - - - - 10,523,972 Other Deferrals 113,331 - 113,331 - - - - 113,331

357,661,622 11,159,444 368,821,066 312,343,536 6,662,534 319,006,070 - 687,827,136 NET POSITION

Net investment in capital assets 1,201,344,368 160,096,694 1,361,441,062 1,303,997,401 345,423,060 1,649,420,461 (643,320,938) 2,367,540,585 Restricted for:

Capital projects 67,253,751 89,386,135 156,639,886 6,148,202 - 6,148,202 - 162,788,088 Contingency reserve 172,149,835 - 172,149,835 - - - - 172,149,835 Debt service 59,272,502 - 59,272,502 - - - - 59,272,502 Restricted for I-net 5,921,545 - 5,921,545 - - - - 5,921,545 Landfill closure - 15,275,839 15,275,839 - - - - 15,275,839 Preservation - 1,638,550 1,638,550 - - - - 1,638,550 Education - - - - 13,303,038 13,303,038 - 13,303,038 Community development - - - 5,302,341 17,860,944 23,163,285 - 23,163,285

Unrestricted (deficit) (3,831,777,348) (80,630,369) (3,912,407,717) (2,464,288,841) (46,544,452) (2,510,833,293) 643,320,938 (5,779,920,072) Total Net Position (2,325,835,347)$ 185,766,849$ (2,140,068,498)$ (1,148,840,896)$ 330,042,590$ (818,798,306)$ -$ (2,958,866,804)$

See accompanying notes to financial statements.

DEFERRED INFLOW OF RESOURCES -

Component Units

Exhibit A-1 PRINCE GEORGE'S COUNTY, MARYLAND

Statement of Net Position June 30, 2019

17

Exhibit A-2

Program Revenues Primary Government Component Units Operating Capital Board of Education

Charges for Grants and Grants and Governmental Business-type of Prince George's Other Expenses Services Contributions Contributions Activities Activities Total County Component Units

Functions/Programs Primary government:

Governmental activities: General government 433,846,810$ $ 121,412,340 $ 22,053,990 $ - $ (290,380,480) $ - $ (290,380,480) $ - $ - Public safety 820,674,177 54,257,301 26,590,129 1,323,680 (738,503,067) - (738,503,067) - - Environmental 5,864,560 583,987 554,285 346,586 (4,379,702) - (4,379,702) - - Health and Human Services 94,868,581 6,544,965 58,461,891 43,372 (29,818,353) - (29,818,353) - - Infrastructure and Development 132,006,323 78,709,711 6,172,284 4,081,537 (43,042,791) - (43,042,791) - - Education: Board of Education 834,762,391 - - - (834,762,391) - (834,762,391) - - Community College 49,881,662 - - - (49,881,662) - (49,881,662) - - Memorial Library 24,614,954 - - - (24,614,954) - (24,614,954) - - Interest on long-term debt 83,961,246 - - - (83,961,246) - (83,961,246) - - Total governmental activities 2,480,480,704 261,508,304 113,832,579 5,795,175 (2,099,344,646) - (2,099,344,646) - -

Business-type activities: Solid Waste 98,470,710 97,269,665 - - - (1,201,045) (1,201,045) - - Stormwater 54,508,019 5,590,995 - - - (48,917,024) (48,917,024) - -

. Watershed Protection 8,651,671 14,700,665 - - - 6,048,994 6,048,994 - - Total business-type activities 161,630,400 117,561,325 - - - (44,069,075) (44,069,075) - -

Total primary government 2,642,111,104$ $ 379,069,629 $ 113,832,579 $ 5,795,175 $ (2,099,344,646) $ (44,069,075) $ (2,143,413,721) $ - $ -

Component units: Board of Education 2,280,657,692 17,637,923 274,922,806 102,339,496 - - - (1,907,964,279) - Other Component Units: Infrastructure and Development 26,828,621 18,694,709 660,000 250,126 - - - - (7,223,786) Education 185,557,911 27,775,550 12,358,932 3,024,058 - - - - (142,399,371) Community development 97,847,937 2,998,671 93,189,108 18,839,617 - - - - 17,179,459

Total component units 2,590,892,161$ 67,106,853 381,130,846 124,453,297 - - - (1,907,964,279) (132,443,698)

General Revenues: Property taxes 896,548,210 47,593,925 944,142,135 - - Income taxes 683,737,622 - 683,737,622 - - Transfer and recordation taxes 169,002,879 - 169,002,879 - - Energy taxes 83,870,176 - 83,870,176 - - Telecommunications tax 23,671,150 - 23,671,150 - - Other taxes 31,977,644 - 31,977,644 - - Unrestricted state shared tax 2,998,300 - 2,998,300 - - Earnings (loss) on investments 19,421,223 7,529,233 26,950,456 9,103,085 1,206,994 Unrestricted grants and contributions 2,148,678 - 2,148,678 1,902,582,888 147,950,496 Miscellaneous revenues 761,402 - 761,402 3,555,828 Total general revenues 1,914,137,284 55,123,158 1,969,260,442 1,911,685,973 152,713,318

Special items Change in net position (185,207,362) 11,054,083 (174,153,279) 3,721,694 20,269,620 Net position - beginning of year (2,140,627,985) 174,712,766 (1,965,915,219) (1,152,562,590) 311,916,670 Prior period adjustment - - - (2,143,700) Net position - beginning of year, restated (2,140,627,985) 174,712,766 (1,965,915,219) (1,152,562,590) 330,042,590 Net position - end of year (2,325,835,347)$ $ 185,766,849 $ (2,140,068,498) $ (1,148,840,896) $ 330,042,590

See accompanying notes to financial statements.

PRINCE GEORGE'S COUNTY, MARYLAND Statement of Activities

For the year ended June 30, 2019 Net (Expense) Revenue and Changes in Net Assets

18

Governmental Funds

Federal and State Non-Major Total

Aided Capital Governmental Governmental Assets General Programs Projects Funds Funds

Cash and investments 423,588,282$ $ 29,165,701 $ 274,118 $ 9,754,764 $ 462,782,865 Cash with fiscal agents - - - 27,798,317 27,798,317 Receivables (net of allowances for uncollectibles):

Taxes 8,536,574 - - - 8,536,574 Accounts 50,880,593 3,284,195 - - 54,164,788 Notes 19,787,080 27,664,675 - - 47,451,755

Accrued interest receivable 3,477,118 - - - 3,477,118 Due from other funds 66,700,000 - - - 66,700,000 Due from component units 6,778,782 - - - 6,778,782 Due from other governmental units 173,369,359 61,734,722 1,217,201 26,780 236,348,062 Inventories 2,810,871 - - - 2,810,871 Restricted assets:

Cash and investments 50,664,643 254,174 512,460,842 31,220,011 594,599,670 Other assets 50,000 - - - 50,000

Total assets 806,643,302 122,103,467 513,952,161 68,799,872 1,511,498,802

Liabilities, Deferred Inflows, and Fund Balances Liabilities:

Compensated absences and termination benefits payable 534,601 - - - 534,601 Accounts payable 43,866,357 11,373,931 40,029,205 2,655,494 97,924,987 Retainages - 11,569 8,774,288 - 8,785,857 Accrued liabilities 33,015,358 1,047,982 - - 34,063,340 Unearned revenue 18,296,933 109,398,114 - - 127,695,047 Deposits 33,320,258 17,697 29,316,123 - 62,654,078 Due to other funds - - 58,000,000 - 58,000,000 Due to component units 7,809,203 - 44,859,643 - 52,668,846 Total liabilities 136,842,710 121,849,293 180,979,259 2,655,494 442,326,756

Deferred inflows of resources

Unavailable tax and other revenue 89,660,883 - - - 89,660,883 Total deferred inflow of resources 89,660,883 - - - 89,660,883

Fund balances:

Nonspendable 2,810,871 - - - 2,810,871 Restricted 208,475,941 254,174 330,158,545 62,456,851 601,345,511 Committed 68,859,934 - 2,814,357 - 71,674,291 Assigned 64,428,593 - - 3,687,527 68,116,120 Unassigned 235,564,370 - - - 235,564,370 Total fund balances 580,139,709 254,174 332,972,902 66,144,378 979,511,163 Total liabilities, deferred inflows of resources, and fund balances 806,643,302$ $ 122,103,467 $ 513,952,161 $ 68,799,872 $ 1,511,498,802

See accompanying notes to financial statements. (Continued)

Exhibit A-3 PRINCE GEORGE'S COUNTY, MARYLAND

Balance Sheet

June 30, 2019

19

Exhibit A-3, Cont.

Total fund balances for governmental funds (Exhibit A-3) 979,511,163$

Amounts reported for governmental activities in the statement of net position is different because:

Capital assets used in governmental funds are not financial resources and therefore are not reported in the funds. Those assets which do not include the combined assets related to the internal service funds consist of: Land 108,656,583$ Infrastructure, net of $1,266,515,081, accumulated depreciation 1,678,427,320 Buildings and improvements, net of $171,683,114, accumulated depreciation 524,488,811 Equipment, net of $161,339,178 accumulated depreciation 49,986,669 Construction in progress 177,197,276 Total capital assets 2,538,756,659

The assets and liabilities of the Internal Service Funds (funds used by management to charge the cost of fleet maintenance, information technology, and self-insurance) are included in the governmental activities in the statement of net assets. Internal service fund net position is: (107,900,157)

County revenue that is collected after year-end, but not available soon enough to pay for the current period's expenditures is reported as deferred inflow of resources in the funds. 89,660,883

Long-term liabilities for governmental funds activity are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but is recognized as an expenditure when due. Balances at June 30, 2019 are: (30,773,528)

Long-term liabilities, deferred inflows, and deferred outflows: Bonded debt (1,903,399,373) Deferred inflow of resources - bond refunding costs (113,331) Unamortized discount (premium) (208,776,114) Capital lease obligations (110,201,592) Pension and OPEB obligations (3,235,100,151) Compensated absences and termination benefits payable (78,231,281) Notes payable (265,338,480) Deferred outflow of resources - pensions 161,446,304 Deferred inflow of resources - pensions (96,714,621) Deferred outflow of resources - OPEB 195,786,459 Deferred inflow of resources - OPEB (254,448,187) Total long-term liabilities (5,795,090,367) Total net position of governmental activities (2,325,835,347)$

PRINCE GEORGE'S COUNTY, MARYLAND Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position June 30, 2019

20

Federal and State Non-Major Total

Aided Capital Governmental Governmental General Programs Projects Funds Funds

Revenues: Taxes $ 1,876,910,179 $ - $ - $ 2,835,779 $ 1,879,745,958 Licenses and permits 64,692,411 - - 314,275 65,006,686 Fines and forfeitures 12,494,706 - - 951,781 13,446,487 Use of money and property 23,936,760 5,276,282 189,437 707,677 30,110,156 Charges for services 49,981,285 770,335 10,511,204 35,620,739 96,883,563 Intergovernmental 35,226,053 81,531,535 3,836,213 3,353,986 123,947,787 Miscellaneous 1,442,506 934,134 1,854,501 390 4,231,531 Total revenues 2,064,683,900 88,512,286 16,391,355 43,784,627 2,213,372,168

Expenditures: Current: General government 347,622,728 3,787,965 - 825,682 352,236,375 Public safety 736,850,646 15,887,721 - 6,049,994 758,788,361 Environmental 4,657,444 1,125,172 - - 5,782,616 Health and human services 34,527,747 60,163,622 - 361,799 95,053,168 Infrastructure and development 33,126,538 6,379,510 - - 39,506,048 Capital projects - - 150,477,516 - 150,477,516 Education: Board of Education 763,562,900 - 71,199,491 - 834,762,391 Community College 42,620,600 - 7,261,062 - 49,881,662 Memorial Library 22,400,000 - 9,962,755 - 32,362,755 Debt service: Principal retirement 26,775,211 1,302,000 - 107,058,931 135,136,142 Interest 10,363,870 59,740 - 67,337,592 77,761,202 Total expenditures 2,022,507,684 88,705,730 238,900,824 181,633,998 2,531,748,236 Excess of revenues over (under) expenditures 42,176,216 (193,444) (222,509,469) (137,849,371) (318,376,068) Other financing sources (uses): General obligation bonds issued - - 263,775,000 - 263,775,000 Capital lease financing 39,684,027 - - - 39,684,027 Bond and notes premium 15,208,648 - 35,951,954 14,853,118 66,013,720 Notes Issued 110,570,000 - 9,950,000 - 120,520,000 Transfers in 2,500,000 - 27,378,459 126,139,681 156,018,140 Transfers out (158,018,140) - - - (158,018,140) Total other financing sources (uses) 9,944,535 - 337,055,413 140,992,799 487,992,747 Net change in fund balances 52,120,751 (193,444) 114,545,944 3,143,428 169,616,679

Fund balances, beginning of year 528,018,958 447,618 218,426,958 63,000,950 809,894,484 Fund balances, end of year $ 580,139,709 $ 254,174 $ 332,972,902 $ 66,144,378 $ 979,511,163

See accompanying notes to financial statements. (Continued)

For the year ended June 30, 2019

Exhibit A-4 PRINCE GEORGE'S COUNTY, MARYLAND

Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds

21

Exhibit A-4, Cont.

Amounts reported for governmental activities in the statement of activities is different because:

Net change in fund balances - total governmental funds 169,616,679$

Capital Outlay, reported as expenditures in governmental funds, are shown as capital assets in the Statement of Net Position. 104,972,731

Depreciation expense on governmental capital assets is included as an expense in the statement of activities, but does not require the use of current financial resources, and therefore, is not reported as expenditures in governmental funds. (85,861,179)

Donated capital assets are reported as revenue on the statement of activities; however, they do not provide current financial resources to the funds. 34,704,120

Revenues in the statement of activities that do not provide current financial resources are reported as deferred revenue in the funds. This represents changes in deferred revenue at the fund level. 14,272,181

In the statement of activities the loss on disposal of equipment is reported, whereas in the governmental funds, disposal of capital assets are not recorded. Thus the change in net assets differs from the change in fund balance. (19,964)

Internal Service Funds are used by management to charge the cost of fleet maintenance, information technology, and self insurance. The net revenue is reported with governmental activities. 6,605,896

Long-term liabilities for governmental funds activity are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but is recognized as an expenditure when due. Balances at June 30, 2019 are:

Debt Issued: Bond proceeds (263,775,000) Bond and notes premium (66,013,720) Capital lease and note proceeds (160,204,027) Principal payments 135,136,142 Net adjustment (354,856,605)

Certain expenses reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. Accrued interest expense (6,200,044) Compensated absences (3,555,673) Pension and LOSAP expenses (51,013,769) Other post employment benefits (49,877,424) Amortization bond premium/discount and deferred charge on refunding 36,005,689

(74,641,221)

Change in net position of governmental activities (185,207,362)$

See accompanying notes to financial statements.

For the Year Ended June 30, 2019

PRINCE GEORGE'S COUNTY, MARYLAND Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Funds to the Statement of Net Activities

22

Exhibit A-5 PRINCE GEORGE'S COUNTY, MARYLAND

Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) General Fund

Variance with Final Budget

Original Final Positive Budget Budget Actual (Negative)

Revenues: Taxes 1,863,663,700$ 1,863,663,700 1,876,910,179 13,246,479 Licenses and permits 58,742,900 58,742,900 64,692,411 5,949,511 Fines and forfeitures 16,335,600 16,335,600 12,494,706 (3,840,894) Use of money and property 5,397,200 5,397,200 23,936,760 18,539,560 Charges for services 49,693,800 49,693,800 49,981,285 287,485 Intergovernmental 36,059,700 36,059,700 35,226,053 (833,647) Miscellaneous 3,268,400 3,268,400 1,442,506 (1,825,894)

Total revenues 2,033,161,300 2,033,161,300 2,064,683,900 31,522,600 Expenditures:

General government: County Executive 6,852,700 7,098,100 6,966,119 131,981 Legislative Branch 20,769,600 20,769,600 18,602,301 2,167,299 Office of Ethics and Accountability 854,000 854,000 789,546 64,454 Circuit Court 17,819,300 17,819,300 17,688,159 131,141 Orphan's Court 445,000 503,200 482,954 20,246 Personnel Board 353,100 353,100 347,556 5,544 Office of Finance 4,003,100 4,003,100 3,623,279 379,821 Citizen Complaint Oversight Panel 313,100 313,100 284,777 28,323 Office of Community Relations 6,047,300 6,047,300 5,252,625 794,675 People's Zoning Council 250,000 250,000 250,000 - Office of Management and Budget 3,118,700 3,118,700 2,800,664 318,036 Board of License Commissioners 1,661,400 1,661,400 1,344,219 317,181 Office of Law 4,543,600 4,543,600 4,089,225 454,375 Office of Human Resource Management 7,586,300 7,586,300 7,297,344 288,956 Board of Elections 5,781,000 5,781,000 5,262,016 518,984 Office of Central Services 21,006,300 21,006,300 20,787,684 218,616 Property Management 600,000 600,000 340,269 259,731 Collington Center 5,000 5,000 5,000 - Non-departmental 177,229,400 188,635,000 171,340,903 17,294,097

Total general government 279,238,900 290,948,100 267,554,640 23,393,460

(Continued)

For the year ended June 30, 2019

23

Exhibit A-5, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) General Fund

For the year ended June 30, 2019

Variance with Final Budget

Original Final Positive Budget Budget Actual (Negative)

Public safety Office of the State's Attorney 18,231,200$ 18,231,200 18,231,200 - Police Department 344,720,200 338,007,500 323,403,402 14,604,098 Fire Department 199,808,800 205,665,100 205,526,145 138,955 Sheriff's Department 50,064,800 50,064,800 48,999,410 1,065,390 Department of Corrections 89,549,400 89,549,400 88,259,192 1,290,208 Office of Homeland Security 34,332,400 34,332,400 32,601,116 1,731,284

Total Public Safety 736,706,800 735,850,400 717,020,465 18,829,935

Environmental Department of the Environment 4,318,200 4,318,200 4,288,361 29,839

Total Environment 4,318,200 4,318,200 4,288,361 29,839

Health and Human Services Department of Family Services 5,499,700 5,499,700 4,752,662 747,038 Health 26,547,000 26,547,000 24,294,187 2,252,813 Public Welfare 5,403,900 5,581,700 5,134,735 446,965

Total Health and Human Services 37,450,600 37,628,400 34,181,584 3,446,816

Infrastructure and Development Public Works and Transportation 15,706,600 15,706,600 15,339,307 367,293 Department of Permitting, Inspections and Enforcement 10,423,300 10,423,300 8,951,119 1,472,181 Department of Housing and Community Development 10,916,500 10,916,500 5,479,264 5,437,236

Total Infrastructure and Development 37,046,400 37,046,400 29,769,690 7,276,710

Education 828,583,500 828,583,500 828,583,500 - Total Expenditures 1,923,344,400 1,934,375,000 1,881,398,240 52,976,760 Excess of revenues over expenditures 109,816,900 98,786,300 183,285,660 84,499,360

Other financing sources (uses): Transfers in - other funds 2,831,000 2,831,000 2,500,000 (331,000) Transfers out - other funds (156,763,700) (156,763,700) (158,018,140) (1,254,440) Appropriated fund balance 44,115,800 55,146,400 - (55,146,400)

Total other financing sources (uses) (109,816,900) (98,786,300) (155,518,140) (56,731,840) Deficiency of revenues and other financing sources under expenditures and other uses

(budgetary basis) - - 27,767,520 27,767,520 Adjustments:

Purchase agreement financing 165,462,675 Capital financing expenditures (141,109,444) Excess of revenues and other financing sources over expenditures and other uses (GAAP basis) 52,120,751 Fund balance, beginning of year 528,018,958 Fund balance, end of year 580,139,709$

See accompanying notes to financial statements.

24

Governmental Non-Major Activities-

Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service

Assets Fund Fund Fund Total Funds Current assets:

Cash and investments $ 6,978,088 $ 19,540,766 $ 969,764 $ 27,488,618 $ 101,576,534 Cash with fiscal agents 1,590,955 - 1,590,955 - Taxes receivable - 722,714 - 722,714 -

Less allowance for uncollectibles - (27,701) - (27,701) - Accounts receivable 3,910,112 - 1,164,952 5,075,064 2,179,354

Less allowance for uncollectibles (1,181,876) - (14,936) (1,196,812) - Accrued interest receivable 291,011 226,213 143,295 660,519 87,325 Due from component units - - - - 1,221,007 Due from other governmental units 667,468 118,150 - 785,618 554,577 Inventories - - - - 996,466 Prepaid costs and deposits - - - - 361,570

Total current assets 12,255,758 20,580,142 2,263,075 35,098,975 106,976,833 Noncurrent assets:

Restricted cash and investments Revenue bond operation and maintenance 9,000,000 - - 9,000,000 - Sandy Hill Trust 1,890,485 - - 1,890,485 - Landfill closure 98,105,060 - - 98,105,060 - Unspent bond proceeds 8,862,074 80,386,135 - 89,248,209 -

Total restricted cash and investments 117,857,619 80,386,135 - 198,243,754 - Capital assets:

Land 11,306,081 15,766,896 - 27,072,977 1,000,000 Buildings and improvements 29,227,755 242,525 - 29,470,280 3,250,026

Accumulated depreciation (14,972,795) (242,525) - (15,215,320) (2,681,498) Improvements other than buildings 5,151,450 - - 5,151,450 282,382

Accumulated depreciation (4,305,256) - - (4,305,256) (282,382) Equipment 22,018,064 3,868,543 - 25,886,607 4,846,270

Accumulated depreciation (20,292,145) (3,868,543) - (24,160,688) (4,030,098) Landfill property in service 139,386,264 - - 139,386,264 -

Accumulated depreciation (124,754,400) - - (124,754,400) - Stormwater property in service - 199,539,940 - 199,539,940 -

Accumulated depreciation - (74,078,488) - (74,078,488) - Construction in progress 30,347,064 214,957,542 78,738,434 324,043,040 -

Total capital assets 73,112,082 356,185,890 78,738,434 508,036,406 2,384,700 Total noncurrent assets 190,969,701 436,572,025 78,738,434 706,280,160 2,384,700 Total assets 203,225,459 457,152,167 81,001,509 741,379,135 109,361,533

Deferred outflow of resources: OPEB deferrals 2,515,484 4,094,016 - 6,609,500 3,729,041

Pension deferrals 1,874,419 2,918,543 - 4,792,962 2,918,335 Deferred charge on refunding 45,975 502,329 - 548,304 -

Total deferred outflow of resources 4,435,878 7,514,888 - 11,950,766 6,647,376

(Continued)

Exhibit A-6 PRINCE GEORGE'S COUNTY, MARYLAND

Statement of Net Position Proprietary Funds

June 30, 2019

Business-type Activities - Enterprise Funds

25

Exhibit A-6, Cont.

Governmental Non-Major Activities-

Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service

Liabilities Fund Fund Fund Total Funds Current liabilities:

Payable from unrestricted assets: Current portion of bonded debt $ 2,842,963 $ 12,347,350 $ - $ 15,190,313 $ - Current portion of compensated absences and termination benefits payable 866,521 1,216,609 75,922 2,159,052 1,332,580 Current portion of notes payable 1,271,252 - - 1,271,252 - Current portion of estimated liability on pending claims - - - - 39,128,332 Current portion of postclosure liability 1,387,946 - - 1,387,946 - Accounts payable 6,188,142 11,082,901 1,237,688 18,508,731 8,614,146 Retainages 67,963 2,977,029 - 3,044,992 - Accrued liabilities 463,770 768,335 - 1,232,105 702,523 Unearned revenue 708,987 - - 708,987 39,876 Matured bonds and interest payable - 4,126,982 - 4,126,982 - Deposits 83,713 - - 83,713 - Due to other funds - - 7,000,000 7,000,000 -

Total current liabilities 13,881,257 32,519,206 8,313,610 54,714,073 49,817,457 Long-term liabilities:

41,611,794 286,354,076 - 327,965,870 - Notes Payable, less current portion 5,454,008 - - 5,454,008 - Compensated absences and termination benefits payable, less current portion 9,302 80,923 - 90,225 100,072 OPEB Liability 18,573,172 30,455,929 - 49,029,101 27,153,910 Net pension liability 8,151,292 13,299,705 - 21,450,997 13,587,094 Estimated liability on pending claims, less current portion - - - - 132,370,551 Estimated liability for landfill closure costs, less current portion 92,193,834 - - 92,193,834 -

Total long-term liabilities 165,993,402 330,190,633 - 496,184,035 173,211,627 Total liabilities 179,874,659 362,709,839 8,313,610 550,898,108 223,029,084

Deferred inflow of resources: Pension deferrals 954,990 1,610,202 2,565,192 1,578,922

OPEB deferrals 3,280,426 5,313,826 - 8,594,252 4,806,561 Total deferred outflow of resources 4,235,416 6,924,028 - 11,159,444 6,385,483

Net position: Net investment in capital assets 23,873,796 57,484,464 78,738,434 160,096,694 2,384,700 Restricted for capital improvements and future maintenance 9,000,000 80,386,135 - 89,386,135 - Restricted for Sandy Hill Trust 1,890,485 - - 1,890,485 - Restricted for landfill closure costs 13,385,354 - - 13,385,354 - Restricted for Chesapeake Bay and tree preservation activities - 1,638,550 - 1,638,550 - Restricted for I-Net - - - - 5,921,545 Unrestricted (24,598,373) (44,475,961) (6,050,535) (75,124,869) (121,711,903)

Total net position $ 23,551,262 95,033,188 72,687,899 191,272,349 (113,405,658)

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (5,505,500) Net position of business-type activities 185,766,849$

See accompanying notes to financial statements.

Bonded debt, less current portion

Proprietary Funds June 30, 2019

Statement of Net Position, Continued PRINCE GEORGE'S COUNTY, MARYLAND

Business-type Activities - Enterprise Funds

26

PRINCE GEORGE'S COUNTY, MARYLAND Statement of Revenues, Expenses and Changes in Fund Net Position

Proprietary Funds

Business-type Activities - Enterprise Funds Governmental Non-Major Activities-

Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service Fund Fund Fund Total Funds

Operating revenues: Premium contributions $ - - - - 146,245,630 Licenses and permits - $ 5,590,995 $ - $ 5,590,995 $ - Sales 203,541 - - 203,541 32,366,149 Charges for services 96,924,420 - 14,566,673 111,491,093 12,637,364 Use of money and property - rentals - - - 162,634 Miscellaneous 141,704 - 133,992 275,696 1,272,776

Total operating revenues 97,269,665 5,590,995 14,700,665 117,561,325 192,684,553

Operating expenses: Salaries 7,316,586 11,630,282 - 18,946,868 10,791,556 Project charges - salaries/recoveries 9,380,721 9,446,469 - 18,827,190 - Fringe benefits 6,191,025 9,031,202 - 15,222,227 4,985,996 Contractual services 36,978,571 - 7,626,554 44,605,125 7,866,373 Materials - - - - 12,786,529 Rent - - - - 241,615 General and administrative 27,979,083 11,324,628 1,025,117 40,328,828 12,302,239 Depreciation and amortization 7,780,276 4,389,871 - 12,170,147 242,308 Insurance claims and premiums - - - - 135,154,022 Landfill postclosure costs 1,347,769 - - 1,347,769 - Other - - - - 4,416,281

Total operating expenses 96,974,031 45,822,452 8,651,671 151,448,154 188,786,918 Operating income (loss) 295,634 (40,231,457) 6,048,994 (33,886,829) 3,897,635

Nonoperating revenues (expenses): Taxes - 47,593,925 - 47,593,925 - Interest income 4,296,561 1,398,326 1,834,346 7,529,233 1,229,434 Interest expense (1,659,159) (8,835,551) - (10,494,710) - Debt issuance costs - (204,583) - (204,583) - Gain (loss) on sale of capital assets - - - - (4,125)

Total nonoperating revenues (expenses) 2,637,402 39,952,117 1,834,346 44,423,865 1,225,309 Income (loss) before contributions and transfers 2,933,036 (279,340) 7,883,340 10,537,036 5,122,944

Transfers in - other funds - - - - 8,438,314 Transfers Out - other funds - - - - (6,438,314)

Change in net position 2,933,036 (279,340) 7,883,340 10,537,036 7,122,944 Net position - beginning of year 20,618,226 95,312,528 64,804,559 (120,528,601)

Net position - end of year $ 23,551,262 $ 95,033,188 $ 72,687,899 $ (113,405,657)

Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 517,047 Change in net position of business-type activities 11,054,083$

See accompanying notes to financial statements.

Exhibit A-7

For the year ended June 30, 2019

27

Governmental Non-Major Activities-

Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service Fund Fund Fund Total Funds

Cash flows from operating activities: Cash received from customers $ 97,072,980 5,594,379 14,550,953 117,218,312 30,271,501 Cash received from interfund charges - - - - 160,155,744 Cash payments to suppliers for goods and services (68,982,770) (14,244,090) (7,216,060) (90,442,920) (116,062,887) Cash payments to employees for services (23,139,286) (30,289,303) - (53,428,589) (15,738,861) Premium and claim payments - - - - (46,022,236) Other cash receipts - - - - 10,306

Net cash and cash equivalents provided (used) by operating activities 4,950,924 (38,939,014) 7,334,893 (26,653,197) 12,613,567

Cash flows from noncapital financing activities: Tax collections - 47,504,005 - 47,504,005 - Transfers in from other funds - - 7,000,000 - 8,438,314 Transfers out to other funds - - - - (6,438,314)

Net cash and cash equivalents provided by noncapital financing activities - 47,504,005 7,000,000 54,504,005 2,000,000

Cash flows from capital and related financing activities: Acquisition and construction of property, plant and equipment (6,839,381) (26,670,198) (26,300,034) (59,809,613) (301,826) Capital grants - (99,604) - (99,604) - Proceeds of issuance of bonded debt - 65,905,391 - 65,905,391 - Proceeds of notes payable 1,815,798 - - 1,815,798 - Payment of bond issue costs - (204,583) - (204,583) - Principal payments on bonded debt (2,431,653) (9,149,416) - (11,581,069) - Principal payments on notes payable (1,038,403) - - (1,038,403) - Interest payments (1,972,247) (8,743,836) - (10,716,083) -

Net cash and cash equivalents used in capital and related financing activities (10,465,886) 21,037,754 (26,300,034) (15,728,166) (301,826) Cash flows from investing activities: -

Interest on investments 4,296,560 1,404,381 1,782,708 7,483,649 1,210,631

Net cash and cash equivalents provided by investing activities 4,296,560 1,404,381 1,782,708 7,483,649 1,210,631 Net increase (decrease) in cash and cash equivalents (1,218,402) 31,007,126 (10,182,433) 19,606,291 15,522,372 Cash and cash equivalents, beginning of year 127,645,064 68,919,775 11,152,197 207,717,036 86,054,163

Cash and cash equivalents, end of year $ 126,426,662 99,926,901 969,764 227,323,327 101,576,535

Cash classified as: Current assets 8,569,043 19,540,766 969,764 29,079,573 101,576,534 Restricted assets 117,857,619 80,386,135 - 198,243,754 -

$ 126,426,662 $ 99,926,901 $ 969,764 $ 227,323,327 $ 101,576,534

(Continued)

For the year ended June 30, 2019

Business-type Activities - Enterprise Funds

Exhibit A-8 PRINCE GEORGE'S COUNTY, MARYLAND

Statement of Cash Flows Proprietary Funds

28

Governmental Non-Major Activities-

Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service Fund Fund Fund Total Funds

Reconciliation of operating loss to net cash provided (used in) operating activities:

Operating income (loss) $ 295,634 $ (40,231,457) $ 6,048,994 $ (33,886,829) $ 3,897,635

Adjustments to reconcile operating loss to net cash provided by (used in) operating activities: Depreciation and amortization 7,780,276 4,389,871 - 12,170,147 242,308 Provision for doubtful receivables 128,913 - (427) 128,486 - Pension Expense (339,527) (180,478) - (520,005) (120,558)

Effect of changes in operating assets and liabilities: Accounts receivable (276,502) 3,384 (149,285) (422,403) 65,740 Inventories - - - - 1,008,382 Due from other governmental units (49,096) - - (49,096) - Prepaid costs - - 250,000 250,000 (258,937) Compensated absences and termination benefits payable 21,896 (64,174) 75,922 33,644 63,015 Accounts payable (3,514,109) (3,568,400) 1,109,689 (5,972,820) (1,734,086) Retainages 51,222 648,938 - 700,160 - Accrued costs 66,676 63,302 - 129,978 96,224 Due to other funds 39,896 - - 39,896 - Deferred revenue - - - (1,091,732) Due from component units - - - - (1,221,007) Estimated liability for landfill closure costs - - - - - Estimated liability on pending claims 745,645 - - 745,645 11,666,583

Total adjustments 4,655,290 1,292,443 1,285,899 7,233,632 8,715,932

Net cash and cash equivalents provided by (used in) operating activities $ 4,950,924 $ (38,939,014) $ 7,334,893 $ (26,653,197) $ 12,613,567

Non-cash investing, capital and related financing activities: Decrease (increase) in accrued interest receivable $ 57,968 (6,055) 51,638 103,551 (18,803)

For the year ended June 30, 2019

Business-type Activities - Enterprise Funds

Exhibit A-8, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Proprietary Funds Statement of Cash Flows, Continued

29

Exhibit A-9

Pension and Other Postemployment Agency

Benefit Trust Funds Funds

Assets: Equity in pooled cash and investments $ 10,976,691 39,134,869$ Collateral for loaned securities 9,984,093 - Investments:

Pooled separate accounts 531,038,165 - U.S. Government & agency securities 34,843,653 - Corporate bonds 37,566,783 - Common stock 270,281,077 - Real estate investment trust 8,930,961 - International Government securities 1,196,606 - Other International investments 1,493,087 Asset backed securities 1,420,235 - Money market funds 60,781,567 - Short-term investments 26,200,483 - Commingled trust funds 923,716 - Alternative investments 1,163,549,814 -

Receivables: Taxes - 7,848,836

Accounts 70,431 - Accrued interest receivable 1,167,410 - Prepaid costs and deposits 44,672 -

Total assets 2,160,469,444 46,983,705$

Liabilities: Collateral for loaned securities payable 9,984,093 - Accounts payable 2,149,604 129,792 Accrued costs 1,535,112 - Due to General Fund 1,700,000 - Due to other governmental units - 42,843,764 Funds held in trust - 4,010,149

Total liabilities 15,368,809 46,983,705$

Net position: Net position restricted for pensions and other post-employment benefits $ 2,145,100,635

See accompanying notes to financial statements.

PRINCE GEORGE'S COUNTY, MARYLAND Statement of Fiduciary Net Position

Fiduciary Funds June 30, 2019

30

Exhibit A-10

Pension and Other Postemployment

Benefit Trust Funds Additions:

Contributions: Employer 189,826,601$ Employee 42,837,428 Other 3,776,813 Total contributions 236,440,842 Net appreciation in fair value of investments 71,184,220 Interest and dividends 48,651,366 Total investment income 119,835,586 Less investment expense 6,170,665 Net investment Income 113,664,921

Total additions 350,105,763

Deductions: Benefits 242,371,661 Refunds of contributions 10,158,606 General and administrative expenses 3,828,876

Total deductions 256,359,143

Net increase 93,746,620

Net position restricted for pensions and other post-employment benefits Beginning of year 2,051,354,015

End of year 2,145,100,635$

See accompanying notes to financial statements.

PRINCE GEORGE'S COUNTY, MARYLAND Statement of Changes in Fiduciary Net Position

For the year ended June 30, 2019

31

- THIS PAGE NOT USED -

32

NOTES TO FINANCIAL STATEMENTS

The notes are an integral part of the

financial statements.

Prince George's County, Maryland Notes Financial Statements

33

Reference Subject Page

Footnote 1 Summary of Significant Accounting Policies

a. Reporting Entity 36

b. Basis of Presentation 37

c. Basis of Accounting 38

d. Budgetary Data 39

e. Cash and Cash Equivalents 40

f. Investments 40

g. Allowance for Uncollectible Receivables 41

h. Inventories 41

i. Prepaid Costs and Deposits 41

j. Restricted Assets 41

k. Capital Assets 42

l. Self-Insurance Funds 42

m. Arbitrage Rebate Liability 42

n. Long-Term Obligations 43

o. Net Position and Fund Balance 43

p. Revenues, Expenditures, and Expenses 44

q. Use of Estimates 44

r. Total Column Government-wide Statement of Net Position 44

s. Pension and OPEB 45

Prince George's County, Maryland Notes Financial Statements

34

Footnote 2 New Accounting Pronouncements 45

Footnote 3 Compliance and Accountability 45

Footnote 4 Cash and Investments 45

Footnote 5 Interfund Receivables, Payables, and Transfers 56

Footnote 6 Due from Other Governmental Units 57

Footnote 7 Capital Assets

a. Governmental Activities 57

b. Business-type Activities 59

c. Component Units Capital Assets Activity 62

Footnote 8 Risk Management 63

Footnote 9 Pension and Other Post Employment Benefit Plans

a. Primary Government 64

b. Component Units 73

Footnote 10 Postemployment Benefits Other Than Pensions 73

Footnote 11 Unavailable and Unearned Revenue 80

Footnote 12 Deferred Compensation Plans 80

Prince George's County, Maryland Notes Financial Statements

35

Footnote 13 Long-term Liabilities 81

82 82 83 84 84

85

a. Outstanding Long-term Liabilities b. Bonded Debt Transactions c. Debt Service Requirements d. Bonded Debt Details e. Bond Additions f. Bond Authorizations g. Prior Period Defeasance of Debt

Footnote 14 Conduit Debt Transactions 86

Footnote 15 Special Taxing District 87

Footnote 16 Other Long-term and Short-term Debt 88 89 90 90

a. Capital Lease Obligations b. Pension and OPEB Liabilities c. Compensated Absences and Termination Benefits d. Notes Payable 91

Footnote 17 Fund Balance Policy and Reporting 93 Footnote 18 Encumbrances 94 Footnote 19 Tax Abatements 95 Footnote 20 Summary Disclosure of Significant Contingencies

a. Litigation 95 b. Contingent Liabilities 95 c. Operating Leases 96

Footnote 21 Joint Ventures 97 Footnote 22 Jointly Governed Organization 98

Prince George's County, Maryland Notes Financial Statements

36

(1) Summary of Significant Accounting Policies

The accounting policies of Prince George's County, Maryland (the County) conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The following is a summary of the County’s significant accounting policies:

(a) Reporting Entity

The County is a body corporate and politic founded in 1696 as a political subdivision of the State of Maryland, which performs all local government functions within its jurisdiction. The County operates under a "home rule" Charter adopted in November 1970. Under the Charter, the County is governed by an elected County Executive and nine-member County Council.

As required by GAAP, the accompanying financial statements include various departments and agencies of the Primary Government and the County's component units, entities for which the County is considered to be financially accountable because of the significance of their operational or financial relationship with the County.

The government-wide financial statements include a separate column for the Board of Education of Prince George's County, Maryland and a separate column combining all other discretely presented component units. Each component unit is legally separate from the Primary Government and has a June 30 fiscal year end. There are no blended component units, i.e., legally separate component units whose financial information is combined with the operations of the Primary Government, included in this financial report. A description of the County's eight discretely presented component units follows:

(i) The Board of Education of Prince George's County, Maryland (Board of Education or the Board) - The Board operates all public schools (grades K through 12) within the County. The Board is fiscally dependent because the County: approves its budget, is legally obligated to fund the Board's operations, and issues and is obligated to pay debt for the Board. A complete financial report is available through the Board's administrative offices, which are located at the Sasscer Administration Building, 14201 School Lane, Upper Marlboro, Maryland 20772.

(ii) The Housing Authority of Prince George's County (Housing Authority) - The Housing Authority was created to develop safe, sanitary, and decent housing for County citizens. The governing body and management personnel are appointed by the County Executive. The County also approves the budget of the Housing Authority. Requests for copies of financial statements should be addressed to the administrative offices of the Housing Authority, which are located at Inglewood Center III, 9400 Peppercorn Place, Suite 200, Landover, Maryland 20785.

(iii) The Industrial Development Authority of Prince George's County (IDA) - The IDA is a public building authority providing physical facilities to local governments located in the State of Maryland. The County appoints a majority of the governing body and is able to impose its will through approval of the IDA's budget and substantial involvement in IDA operations. Requests for copies of financial statements should be addressed to the administrative offices of the Industrial Development Authority, which are located at 14741 Governor Oden Bowie Drive, Suite 3151, Upper Marlboro, Maryland 20772.

Resolution CR-69-2017 was adopted on October 24, 2017, by the County Council of Prince George’s County, Maryland, it concerns winding down and termination of the Industrial Development Authority (IDA).

(iv) The Prince George's County Memorial Library System (Memorial Library or Library) - The Memorial Library operates the County's public library system. The County is legally obligated to provide financial support to the Library. The County approves its budget, holds title to its assets, and can unilaterally abolish the Library. Requests for the Library's financial statements should be made to the administrative offices, which are located at 6532 Adelphi Road, Hyattsville, Maryland 20785.

(v) The Prince George's Community College (Community College or College) – The College operates a higher education institution within the County. The County is legally obligated to provide financial support to the College. In addition, the fiscal dependency criterion applies because of the County's substantial budgetary approval authority. Individuals interested in obtaining detailed financial statements for the College should contact its administrative offices, which are located at 301 Largo Road, Landover, Maryland 20772.

Prince George's County, Maryland Notes Financial Statements

37

(vi) The Prince George's Community Television, Inc. (PGCT) - PGCT operates local government public access channel programming for cable television operations. The County appoints a majority of the governing body and imposes its will over PGCT operations. PGCT is fiscally dependent on the County (i.e., the County has substantive approval authority over the budget, sets fees, and prohibits debt issuances.) A full set of financial statements is available at PGCT's administrative offices, which are located at 9475 Lottsford Road, Suite 125, Landover, Maryland 20785.

(vii) The Redevelopment Authority of Prince George’s County (Redevelopment Authority) - The Redevelopment Authority was created to provide residential, commercial, and industrial development or redevelopment within County boundaries. The County appoints a majority of the governing body and is able to impose its will through approval of the Redevelopment Authority's budget and substantial involvement in Redevelopment Authority operations. Requests for copies of financial statements should be addressed to the administrative offices of the Redevelopment Authority, which are located at 9201 Basil Court, Suite 155, Largo, Maryland 20774.

(viii) The Revenue Authority of Prince George’s County (Revenue Authority) - The Revenue Authority was created to develop projects within the boundary lines of the County devoted wholly or partially for public uses and to stimulate employment and economic growth. The Revenue Authority is also responsible for the acquisition, construction, and operation of parking and related facilities for motorized and non-motorized vehicles within the County. The County appoints a majority of the governing body and is able to impose its will through approval of the Revenue Authority’s budget and substantial involvement in Revenue Authority operations. Additionally, the County must approve and is responsible for all bonded debt issuances. Requests for financial statements should be directed to the Revenue Authority's administrative offices, which are located at 1300 Mercantile Lane, Suite 108, Landover, Maryland 20785.

As discussed in Note 21, the Washington Suburban Sanitary Commission, Washington Suburban Transit Commission, Washington Metropolitan Area Transit Authority, and the Maryland-National Capital Park and Planning Commission are not part of the reporting entity, but rather are considered joint ventures for financial reporting purposes.

(b) Basis of Presentation

Government-wide Statements: The statement of net position and the statement of activities report non-fiduciary financial activity of the County and its component units. The majority of inter-fund activity is eliminated from the statements. Governmental activities, which are mainly supported by tax revenues, are reported separately from business- type activities, which rely on fee charges to external parties. Additionally, the primary government is reported separately from its component units.

The statement of activities compares direct expenses and program revenues for distinct activities and for each of the County’s governmental and business-type activities. Direct expenses are those that are specifically related to a program or function. Program revenues include (1) fees and charges for services generated by programs and (2) grants and contributions restricted to a particular program. All taxes and other items not included as program revenues are reported as general revenues.

Fund Financial Statements: Fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. The focus is on major governmental and enterprise funds, which are reported in separate columns in the fund financial statements. The remaining governmental funds are combined and reported as non-major funds.

The County reports the following major governmental funds:

General Fund - The General Fund is the County's primary operating fund. It accounts for all financial resources except those required to be accounted for in another fund.

Federal and State Aided Programs - This Special Revenue Fund accounts for direct financial assistance received by the County through categorical grants from Federal and State agencies.

Capital Projects Fund - The Capital Projects Fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by proprietary or fiduciary funds.

Prince George's County, Maryland Notes Financial Statements

38

The County reports the following major proprietary funds:

Solid Waste – This fund accounts for the disposition of refuse, garbage, rubbish, or any other matter to ensure the public health of the inhabitants of the County. The fund also covers programs and activities associated with solid waste management, environmental protection, and recycling and clean-up of the environment.

Stormwater Management Fund – This fund accounts for the servicing of County stormwater management facilities including floodplain maintenance, storm drain maintenance, and a variety of rehabilitation, repair and maintenance contracts for open channels, ditches, and flood channels.

The County also reports the following additional funds:

Non- Governmental Funds – These funds are special revenue funds which are used to report specific revenues that are legally restricted for particular purposes and the debt service fund which accounts for the payment of general long-term debt not paid by proprietary funds.

Non-Major Enterprise Fund - The Watershed Protection and Restoration Fund This fund was established July 1, 2013 in accordance with provisions of Maryland House Bill 987. The fund accounts for the services rendered to complete water quality and flood control management improvements.

Internal Service Funds - Internal Service Funds are proprietary funds that account for vehicle maintenance, information technology, and risk management services to other departments or agencies of the County, or to other governmental units, on a cost-reimbursement basis. Internal Service Fund accounting is similar to enterprise funds; however, for government-wide reporting the activity is mostly included with governmental activities because they predominantly serve the governmental funds.

Trust Funds - Trust Funds are fiduciary funds out of which retirement annuities and/or benefit payments are paid and designated to public employees.

Agency Funds – These fiduciary funds account for money held on behalf of other governmental entities for taxes collected by the County and deposits held for inmates.

(c) Basis of Accounting

Government-wide, Proprietary and Trust Funds are accounted for using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recognized when earned and expenses are recorded at the time liabilities are incurred.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the business-type and governmental funds of the County. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Stormwater Management Fund, Solid Waste Fund and of the government’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are needed. Furthermore, within the unrestricted fund balance the County will apply expenditures against committed, then assigned, and then unassigned amounts.

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Governmental funds are used to account for the County's general government activities. Governmental funds use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The County considers most revenues available if they are collected within 60 days after year-end. Expenditures generally are recorded when the related liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded when payments are due.

Property taxes, interest, charges for services, and special assessments are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the County and are recognized as revenue at that time.

Entitlements and shared revenues are recorded at the time of receipt or earlier if the “susceptible to accrual” criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting.

The County reports unearned revenue in its financial statements. Unearned revenues arise in governmental funds when the County receives resources before it has a legal claim to them, as when grant monies are received prior to the occurrence of qualifying expenditures. In subsequent periods when the County has a legal claim to the resources, the liability for unearned revenue is removed and revenue is recognized. Unearned revenue is also reported in the government-wide statements.

The County reports deferred inflows and outflows of resources as separate financial statement elements. Deferred outflows of resources are the consumption of net position applicable to a future period. While deferred inflows of resources are the acquisition of net position applicable to a future period. The government-wide and proprietary fund financial statements report both deferred outflows and inflows of resources relating to debt refunding, pension and OPEB costs. The governmental funds report deferred inflows relating to unavailable revenue.

(d) Budgetary Data

The Prince George's County Charter requires that certain transactions be accounted for on a basis other than GAAP. Actual results of operations are presented in the Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual for the General Fund in accordance with legislative requirements, in order to provide a meaningful comparison of actual results with budget estimates. Under the budgetary basis, encumbrances are recorded as the equivalent of expenditures, as opposed to only a restriction, assignment, or commitment of fund balance (GAAP basis). This treatment of encumbrances represents one of two material differences between the GAAP and budget basis. The other significant difference relates to the presentation of purchase agreement financing transactions. These transactions represent equipment or real estate lease purchase contracts where an escrow account is maintained under a three-party agreement between the County, the leasing company, and the fiscal escrow agent, who controls the receipt of the financing proceeds and disbursements for equipment and real estate purchases. Under the GAAP basis, both the purchases and periodic principal and interest payments on the financing must be recorded; however, under the budgetary basis, only the principal and interest payments are recorded.

The County follows these procedures in establishing the budgetary data reflected in the financial statements:

• Agency budget requests are normally due to the Office of Management and budget prior to mid-November.

• Prior to January 15, the Component Units submit to the County Executive a proposed budget for the fiscal year commencing the following July 1.

• Prior to April 1, the County Executive submits to the County Council a proposed operating budget for the County, which includes the needs of the Component Units for the upcoming year. The operating budget includes proposed expenditures and the means of financing them.

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• Public hearings are conducted by the County Council to obtain taxpayer comments.

• Prior to June 1, the budget is legally enacted through passage of an ordinance.

• The appropriated budget is prepared by fund and by object within an agency. The County Executive is authorized to transfer budgeted amounts within an agency within any fund; however, the County Council must approve any revisions that alter the total expenditures of any agency or fund. No agency of the Primary Government shall during any fiscal year expend, or contract to expend, in excess of the amounts appropriated in the budget for such fiscal year. The level of budgetary control (level at which expenditures/expenses are monitored) is maintained at three major object classifications: compensation, other current expenditures/expenses (which include debt service payments, expenditure recoveries, and operating transfers out), and capital outlays. The legal level of control is exercised at the agency level in the General Fund. No County liability shall be incurred or contracted by any department, agency, or employee, and no bill or invoice shall be approved or paid, unless the Council has authorized by budget adoption or a specific appropriation to cover payment out of public funds. Any person willfully violating this provision shall be deemed to be responsible for the contract, debt, or expenditure. The agency head allowing such action shall be subject to such disciplinary action as the Council shall determine.

• Subsequent to passage of the budget ordinance, the County Council may approve supplemental appropriations. During fiscal year 2019, such appropriations amounted to an $11 million increase in the Primary Government’s General Fund budget (major fund).

• All unencumbered appropriations in the General Fund lapse at the end of the fiscal year.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual for the General Fund is located included in Exhibit A-5. The following funds of the Primary Government have legally adopted annual budgets:

General Fund Nonmajor governmental funds:

Domestic Violence Fund Drug Enforcement and Education Fund

Although budgets are not legally adopted for all Special Revenue Funds of the County, budgetary control is exercised. The Federal and State Aided Programs Fund's expenditures are limited to the amount awarded for the associated grant programs.

Expenditures in the Debt Service Fund are limited by authorized transfer amounts from other funds. Capital Projects Funds are appropriated at the project level. Annual operating budgets are not prepared for the Debt Service or Capital Projects Funds.

(e) Cash and Cash Equivalents

For Statement of Cash Flows purposes, the Primary Government defines cash equivalents to include the following: all highly liquid, unrestricted investments with a maturity of three months or less when purchased; all cash and investment pools which are used essentially as demand accounts; all cash with fiscal agents; and all restricted cash and investments have been determined to be cash equivalents.

(f) Investments

Investments of the Primary Government and trust funds are recorded at amortized cost or fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation inputs used to measure the fair value of the asset as detailed in Note 4.

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(g) Allowance for Uncollectible Receivables

The County calculates its allowance for uncollectible receivables using historical collection data and, in certain cases, specific account analysis. The total allowance amounts are summarized below:

Primary Government: General Fund 15,725,973$ Federal and State Aided Fund 26,259,022 Solid Waste Fund 1,181,876 Stormwater Management Fund 27,701 Watershed Protection and Restoration Fund 14,936

43,209,508$

As part of the County's Community Development Block Grant and Rental Rehabilitation federal financial assistance programs, the County makes loans to residents and developers to restore and repair low-income housing units. At June 30, 2019, there was approximately $53.1 million of outstanding loans receivable under these programs. $26.8 million of these loans are offset by equivalent unearned revenue in the Federal and State Aided Programs Special Revenue Fund. The remaining $26.3 million is completely offset by an allowance for uncollectible notes receivable (included in the table above), because collections are highly uncertain. In many cases, the County has agreed to forgive loan repayment if the resident/developer complies with certain requirements that may include residing in the property for a certain number of years.

(h) Inventories Inventories, consisting of expendable items held for consumption, are stated at cost (first-in, first-out method). The consumption method is used, and the cost of such items is recognized as an expense or expenditure when used in operations.

(i) Prepaid Costs and Deposits Payments made to vendors for services that will benefit periods beyond June 30, 2019 are recorded as prepaid expenses. The consumption method is used for prepaid items and expenditures or expenses are recognized when used in operations.

(j) Restricted Assets Proceeds from debt and funds set aside for payment of revenue bonds and other general obligation debt are classified as restricted assets since their use is limited by applicable debt agreements. Federal and State Law require the County to set aside funds to finance closure and postclosure costs. The County has $98,105,060 held for this purpose at June 30, 2019.

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(k) Capital Assets

Capital assets which include land, buildings, equipment, and infrastructure assets (e.g. road networks, bridges, stormwater property, and similar items) are recorded at cost and as governmental or business-type activities in the government-wide financial statements. The County defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Donated capital assets, donated works of art, similar items and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. Assets recorded under capital lease agreements are recorded at the lower of fair value or the net present value of minimum lease payments on the date of the lease inception. Interest is capitalized on assets acquired or constructed with tax-exempt debt. The amount of interest capitalized is calculated by offsetting interest expense incurred from the date of borrowing until installation or completion of the project with interest earned on invested proceeds over the same period.

The costs of normal maintenance and repairs that do not materially extend the assets’ useful lives are not capitalized.

Depreciation is recorded over the following estimated useful lives using the straight-line method:

Land improvements 10 - 20 years

Buildings and plant improvements 3 - 50 years

Stormwater property in service 50 years

Equipment and machinery 3 - 20 years

Bridges 50 years

Road Networks 60 years

The Primary Government's landfill facility at Brown Station Road has completed expansion of the construction of eleven new treatment areas referred to as "cells." Ten cells are currently operational. The total estimated cost of the operational cells was transferred from construction-in-progress to landfill property in service based on the total acreage of the operational cells as a percentage of the total landfill acreage multiplied by total estimated costs of the entire facility. Depreciation is computed by dividing the number of tons of refuse dumped by total estimated landfill capacity, which is then multiplied by the estimated total landfill cost. An independent engineer estimates the total capacity of the landfill as 11,231,652 tons.

(l) Self-Insurance Funds

Included in the estimated liability for pending claims are estimates of incurred but not reported claims and incremental claims adjustment expenses for all lines of coverage.

(m) Arbitrage Rebate Liability

This liability represents the excess investment earnings on unspent bond proceeds over the bond yield, in accordance with the Internal Revenue Code of 1986 as amended. The County has no liability for fiscal year 2019.

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(n) Long-term Obligations

(i) Long-term Debt

In the government-wide financial statements and the proprietary fund financial statements, long-term obligations are reported as liabilities in the applicable, governmental activities, business-type activities, or proprietary fund type statement of net position. Long-term liabilities to be financed from proprietary fund operations are accounted for in those funds.

(ii) Bond Premiums/Discounts and Issuance Costs

Bond premiums and discounts for government-wide and proprietary fund financial statements are deferred and amortized over the term of the bonds using the bonds- outstanding method, which approximates the effective interest method. Bond premiums or discounts are reported as a net addition or reduction of the face amount of bonds payable. Bond issuance costs are recorded as debt service expenses in the year of issuance.

In the governmental funds financial statements, bond premiums and discounts are recognized in the current period. Issuance costs, whether or not withheld from actual debt proceeds, are reported as debt service expenditures.

(iii) Bond Covenants

The various bond indentures contain significant limitations and restrictions on annual debt service requirements, maintenance and flow of monies through various restricted accounts, minimum amounts to be maintained in various sinking funds, and minimum revenue bond coverages. The County is in compliance with all bond covenants.

(o) Net Position and Fund Balance

Net position includes three categories: Net investment in capital assets; restricted net position; and unrestricted net position. Net investment in capital assets consists of capital assets, less accumulated depreciation, reduced by net outstanding debt related to capital assets and related unspent bond proceeds and any deferred resources. Restricted net position is restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted net position is the remaining residual balance.

The County reports fund balance in various governmental funds. The fund balance categories are listed below:

 Nonspendable – Includes amounts that cannot be spent because they are in nonspendable form (i.e. inventory) or contractually required to remain intact.  Restricted - Includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling

legislation.  Committed - Includes amounts that can be used only for specific purposes determined by a formal action by the County Council as the highest level of decision-

making authority. This same formal action (Council Bill) used to create a commitment is required to rescind or modify it.  Assigned – Includes government’s intent to use for specific purposes but does not meet the criteria to be classified as restricted or committed. County Council

Resolution CR-36-2011 granted the authority to assign fund balance in the General Fund to a three-person committee consisting of the Director of the Office of Management and Budget, or their designee, the Director of Finance or their designee, and the County Council Administrator, or their designee.

 Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. In other funds, the unassigned classification can be used only to report a deficit balance.

 When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are needed, except for capital projects which use unrestricted resources first. Furthermore, within the unrestricted fund balance the County will apply expenditures against committed, then assigned, and then unassigned amounts.

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(p) Revenues, Expenditures, and Expenses

(i) Property Tax Revenue Recognition

The County's real property taxes are due and payable on the first day of July each year, the levy date and the date on which an enforceable lien attaches to the property. Levies are based on assessments as certified to the County by the State of Maryland Department of Assessments and Taxation. Certain bills are eligible for semi-annual payments. Annual bills and the first installment of semi-annual bills are due on or before September 30th and become delinquent on October 1st. The second semi-annual installment is due on or before December 31st and becomes delinquent on January 1st. Delinquent taxes are subject to interest and penalty at the monthly rate of 1.67% until paid in full. Personal property and real property taxes levied for fractions of a year are due when billed and are overdue within 30 days of billing. General property taxes receivable, net of the allowance for uncollectibles of $13,667,422, amounted to $8,536,575.

Property on which taxes remain in a delinquent status as of the second Monday in May is placed for tax sale.

At the November 1978 General Election, the voters of the County adopted an amendment to the Charter limiting future collection of real property taxes to the amount collected in fiscal year 1979. The amendment, which became effective in December 1978, added Section 817B to the Charter. It is generally referred to as "TRIM" (TRIM is an acronym for Tax Reform Initiative by Marylanders).

An amendment to TRIM was approved by the voters of the County at the November 1984 General Election, authorizing the Council to levy taxes beginning in 1986 on a maximum rate basis as an alternative to the maximum amount basis. The maximum rate authorized was two dollars and forty cents ($2.40) for each one hundred dollars ($100) of assessed value. Beginning in fiscal year 1992, the Court of Appeals upheld the authority of the County to increase the tax rate to pay principal and interest on bonds outstanding prior to the effective date of "TRIM". Prior to fiscal year 2002, real property in the County was assessed at 40% of the phased-in market value. Pursuant to a change in State law, real property in fiscal year 2002 was assessed at 100% of the phased-in market value. For fiscal year 2019, the tax rate was set at ninety-six cents ($1.00) and two dollars fifty cents ($2.50) for each one hundred dollars ($100) of assessed value for real and personal property, respectively. There were no bonds outstanding issued before the effective date of “TRIM”.

(ii) Landfill Operations - Primary Government

• Closure and Post-closure Care Costs

The October 9, 1991 U.S. Environmental Protection Agency rule, "Solid Waste Disposal Facility Criteria", establishes certain closure and thirty (30) year postclosure care requirements affecting municipal solid waste landfills. In accordance with GAAP, the County accrues for closure and post-closure costs related to its landfill operations.

(q) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses or expenditures during the reporting period. Actual results could differ from those estimates.

(r) Total Column Government-wide Statement of Net Position

The total column for the reporting entity includes a reclassification for the unrestricted net position deficit related to component unit debt ($643,320,938). The reclassification is necessary because the County issues debt to finance construction projects for its component units (Board of Education and Community College); however, the component units own the assets. The debt reduces unrestricted net position for the County, while the capital assets are reported in net position invested in capital assets, net of related debt by the component units.

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(s) Pension and OPEB

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about fiduciary net position of the Maryland State Retirement and Pension System (System), Police, Fire Service, Deputy Sheriff’s Correctional Officers’, and Supplemental Pension Plans (the County Plans)and the and additions to/deductions from the System and County Plans’ fiduciary net position have been determined on the same basis as they are reported by the System and County Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

For purposes of measuring the net Other Postemployment Benefits (OPEB) liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the OPEB Plan and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the OPEB Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

(2) New Accounting Pronouncements

The County implemented the following GASB pronouncements: Statement No. 83 “Certain Asset Retirement Obligations”, Statement No. 88 “Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements” and Statement No. 89 “Accounting for Interest Incurred Before the End of a Construction Period”, The County does not own any types of tangible capital assets that have a legal obligation to perform future asset retirement activities related to this statement No 83. Statement No. 88 was adopted by the County. The required changes are reflected in note 16 below. The required changes from Statement No. 89 currently have no impact on the County’s financial statements and notes to the financial statements. The County is in the process of evaluating the impact of future pronouncements on its financial statements.

(3) Compliance and Accountability

Net Position Deficit - Primary Government - Internal Service Fund – Workers’ Compensation

The Primary Government's Workers’ Compensation Internal Service Fund's net deficit at June 30, 2019 was $144,663,450. The County’s risk management contributions increased by $3.9 million during fiscal year 2019. Expenditures increased by $25.8 million driven by a $23.6 million increase in Insurance claims. The County will continue to increase premium contributions and reduce certain administrative costs in future fiscal years to reduce this deficit. Additionally, the Computer Services Fund had a net deficit of $12,941,578.

(4) Cash and Investments

(a) Investment Policy

The Primary Government’s investment policy’s primary objective for the management of the County’s funds is the protection of investment principal in the overall portfolio through the use of diversification and third-party collateralization while maintaining sufficient liquidity to meet all cash flow requirements. The secondary objective is to maximize investment return consistent with risk limitations.

The Primary Government maintains a cash and investment pool that is available for use by all funds. Each fund’s share of this pool is displayed as "Cash and investments” (restricted and unrestricted). Investment income is allocated to all funds based on the percentage of the fund's cash and investments at month-end to the total pool, with the exception of income on bond proceeds, which is allocated to the General Fund pursuant to certain legal provisions. The Component Units maintain separate bank accounts covered by Federal depository insurance or collateral held by the banks in the entity's name. Details of the component units’ investment policies are included in their individual financial statements and are available to the general public [see note 1(a)]. In addition, investments are separately held by several funds. Statutes authorize the County to invest in obligations of the U.S. Treasury, agencies and instrumentalities; interest bearing accounts; certificates of deposit; repurchase agreements; bankers' acceptances, money market accounts, and the State's investment pool. Statutes require that deposits, interest bearing accounts, certificates of deposit, and repurchase agreements be fully collateralized.

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The Primary Government, the Board of Education, the Revenue Authority, and the Memorial Library participate in the Maryland Local Government Investment Pool (MLGIP). The MLGIP is an external investment pool that is not subject to regulation by the Securities and Exchange Commission (SEC). The State Legislature created the MLGIP within the annotated code of Maryland. The MLGIP, under the administrative control of the State Treasurer, is managed by PNC Institutional Investments. An MLGIP Advisory Committee of current participants was formed to review, on a semi-annual basis, the activities of the Fund and to provide suggestions to enhance the Pool. The reported value of the County’s position in the pool is the same as the fair value of the pool shares. MLGIP participants may withdraw from this account balance by notifying MLGIP management by 2 pm on the day of withdrawal.

The MLGIP was established under the Annotated Code of Maryland and is rated AAAm by S&P Global Ratings, their highest rating for money market funds. MLGIP is a 2a7 like pool, which is not registered with the Securities and Exchange Commission (SEC), but generally operates in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940 (Rule 2a7). Unit value is computed using the amortized cost method and maintains a $1 per share value.

The County categorizes its fair value measurements with the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

• Level 1 – Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets;

• Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or identical assets or liabilities in less active markets, such as dealer or broker markets; and

• Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not based on market, exchange, dealer or broker-traded transactions.

The Primary Government had the following recurring fair value measurements as of June 30, 2019 (in thousands):

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable

Inputs Balance as of June

30, 2019 (Level 1) (Level 2) (Level 3)

-$ 160,579$ -$ 160,579$ Investments by fair value level:

US Agency Securities Investments carried at amortized cost:

Certificates of Deposit 162,620

Money Market Funds 113,350

Maryland Local Government Investment Pool 941,686 1,378,235$

Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities relationship to benchmark quoted prices. Further they are valued based on quoted prices for similar assets or liabilities in active markets or identical assets or liabilities in less active markets, such as dealer or broker markets.

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The OPEB Plan had the following recurring fair value measurements (in thousands):

The valuation method for investments measured at the net asset value (NAV) per share (or its equivalent) is presented on the following table (in thousands).

Common Trust Funds - Fixed Income Fund 29,080,712$ - Daily 1-2 days Common Trust Funds – Equity Funds 30,676,825 - Daily 1-2 days Common Trust Funds - Real Estate Funds 1,024,031 - Daily 1-2 days Total 60,781,567$ -

Investment Fair Value Unfunded Commitments Redemption Frequency

Redemption Notice Period

Equity in pooled cash and investments is comprised of shares or units in the Prince Georges County cash pool, which are valued at its respective share of pooled cash and investments.

Common Trusts-Real Estate Fund consists of an investment in one trust; the objective of the fund is to approximate the performance of the Dow Jones U.S. Select REIT Index. This investment is valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities.

Common Trusts-Equity Funds consist of investments in eight investment trusts. The Funds’ investment objectives are to seek long-term capital appreciation through investing in other investment funds based on a custom index. These investments are valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities.

Common Trusts-Fixed Income Funds consist of investments in six investment trusts, the objective of these funds is to approximate the performance of the Barclays U.S. Treasury Inflation Protects Securities, Barclays U.S. Long Credit Bond and Barclays high Yield $200 Million Very Liquid Indexes. These investments are valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities.

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The Pension Plans had the following recurring fair value measurements (in thousands):

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable

Inputs Balance as of June 30, 2019

(Level 1) (Level 2) (Level 3) Equity in pooled cash and investments -$ 9,520$ -$ 9,520$

Investments by fair value level: U.S. Government and agency securities - 41,319 - 41,319 Corporate bonds - 39,225 - 39,225 Common stock 429,441 - - 429,441 Real Estate Investment Trust 12,932 - - 12,932 International Government Securities 2,710 - - 2,710 Other international investments 2,243 - - 2,243 Asset-backed securities - 33,344 - 33,344

447,326 113,888 - 561,214 Investments carried at amortized cost:

Short-term investments 34,032

Investments carried at Net Asset Value (NAV): Collective trusts 362,196 Mutual Funds 299,372 Hedge Funds 190,699 International Equity Funds 92,421 Private Debt 97,049 Private Equity 235,330 Natural Resources 41,766 Real Estate 162,442

1,481,275 Total Investments 2,076,521$

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The valuation method for investments measured at the net asset value (NAV) per share (or its equivalent) is presented on the following table. Debt Securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities relationship to benchmark quoted prices.

Investment Fair Value Unfunded

Commitments Redemption Frequency

Redemption Notice Period

Collective trusts 362,196$ -$ daily 1-2 days Mutual Funds 299,372 - daily 1-2 days Hedge Funds 190,699 - See note (A) 30-90 days International Equity Funds 92,421 - Monthly 15 days Private Debt 97,049 2,097 4-10 years N/A Private Equity 235,330 81,434 See note (B) 5-10 days Natural Resources 41,766 28,448 7-15 years N/A Real Estate 162,442 11,144 See note (C) 30-90 days

1,481,275$ 123,123$

(A) - Redemption frequency for these assets are either monthly, quarterly, or annually. Redemption notice periods also range from 2 to 90 days

with asset requiring an annual notice.

(B) - Redemption frequency for these assets are either monthly, quarterly, or decenial with several investment requiring 7-10 years.

(C ) - Redemption frequency for these assets are either monthly, quarterly, or decennial, with several investments requiring 8-10 years.

Commingled trust funds consist of investments in fifteen investment trusts, the objectives of these fund is to approximate the performance of the Barclays U.S. Treasury Inflation Protects Securities, Barclays U.S. Long Credit Bond, Barclays high Yield $200 Million Very Liquid Indexes, the Dow Jones U. Select REIT Index and various other benchmarks These investments are valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities.

Collective trust funds consist of investments in four investment trusts, the objectives of these fund is to approximate the performance of the Barclays U.S. Treasury Inflation Protects Securities, the S&P 500, and various other benchmarks. These investments are valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. International equity funds consist of one investment that invests in non-US developed markets with select exposure to emerging markets

Hedge Funds consist of approximately 12 investments in limited partnerships that invest in hedge fund strategies that seek alpha in equity of credit makers. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund.

Private Equity Funds consist of approximately 33 investments in limited partnerships. The private equity investments span the venture capital, growth equity, fund of funds, energy and buyout strategies. Private equity is considered an illiquid investment strategy as funds generally have a life span of seven to 10 years. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund.

Private Debt Funds consist of 16 investments in limited partnerships. The private debt investments span direct lending, distressed, energy, mezzanine, mortgages, opportunistic and other strategies.

Private debt is considered an illiquid investment strategy as funds generally have a life span of seven to 10 years. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund.

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Natural resource funds include 10 investments in limited partnerships in the energy and natural resources industries. Distributions are received as the partnerships liquidate the underlying assets.

Real Estate Funds consists of 11 investments in limited partnerships that invest in income producing equity securities of U.S and International real estate. Real estate is considered an illiquid investment strategy as funds generally have a life span of seven to 10 years. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund.

The Pension Plans of the Primary Government have separate investment policies that are set by each Pension Plan’s Board of Trustees to assure overall diversification of investments. Custody of Plan assets is maintained at financial institutions selected by each Board, but the responsibility for selection of specific investments is delegated to appointed investment managers. The Policy seeks to achieve a long-term rate of return on investments, net of expenses that exceed benchmarks established by the investment committee and maintains sufficient income and liquidity to pay monthly retirement benefits. For the Police and Fire Pension Plans, the policy establishes a strategic target for asset allocation among equity securities (45%), fixed income (25%), real assets (10%), hedge funds (10%), and private equity (10%). For other Comprehensive and Supplemental Plans, the policy establishes a strategic target for asset allocation among equity securities (58%), fixed income (32%) and real estate (10%). The Plans are authorized to invest in U.S. Government securities, common and international stock, money market mutual funds, corporate bonds, repurchase agreements, and real estate. State statutes do not prohibit the Plans from participating in securities lending activities. All investments are valued at fair value. Fair value for investments in pooled separate accounts is determined using quoted market value or fair value as determined by valuation committees when quoted market value is not available. Assets of each Plan are held in separate trust funds. Within each trust, assets are held in custodial accounts for which the custodian makes no investment decisions. The investment policies allow the Plans’ to invest in Alternative Investments which the Plans enter into under limited partnership agreements. The limited partnership determines the fair value of alternative investments when quoted market value is not available. The Plans use a third-party administrator to aid in the evaluation of the Alternative Investments.

The Prince George’s County, Maryland Non-Pension Post-Employment Benefits Fund (the OPEB Trust Fund) was established during fiscal year 2008. In September 2010, the Board of Trustees established an investment policy to set forth the Trustees’ investment objectives, policies, guidelines, monitoring and review procedures relating to the management and safekeeping of all assets of the OPEB Trust. The Fund’s assets may be invested in domestic equity investments, convertible bonds, preferred stocks, US Government obligations, repurchase agreements, corporate bonds, asset backed securities, agency guaranteed mortgage pass-through securities, low risk collateralized mortgage obligations, and international investments. American Depository Receipts (ADRs) and dual listed foreign stocks may be held by each domestic equity manager to a maximum of 10%.

(b) Interest Rate Risk

Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. As a means of limiting the exposure to fair value losses arising from rising interest rates, the Primary Government’s investment policy limits investments with maturities greater than one year to a calculation based on 50% of the average of the investment low point for the last three years. Investments made with unspent bond proceeds may not have a maturity greater than 3 years at time of purchase. At June 30, 2019, investments with maturities greater than one year at the time of purchase were 25.0% of the portfolio. The table below includes the Primary Government’s fixed income holdings by investment type, fair value, and maturity:

Investment Type Fair Value Less than 1 Year 1 to 5 6 to 10 U.S. Agency Securities 160,579$ 39,980$ 89,248$ 31,351$ Certificates of Deposit 162,620 147,620 15,000 - Money Market Mutual Funds 113,350 113,350 - - Local Government Investment Pool 941,686 941,686 - -

1,378,235$ 1,242,636$ 104,248$ 31,351$

Primary Government Investments (in thousands)

Prince George's County, Maryland Notes Financial Statements

51

The Pension Plans’ policies limit the average maturity and duration of certain investments. The table below includes the Pension Plans’ fixed income holdings by investment type, fair value, and maturity.

Table does not include Common Stock, International Government Securities, Mutual Funds, or Real Estate Investment Trust investments, which do not have maturity dates. As of June 30, 2019, the OPEB Plan had investments in the following issuers with credit quality ratings as a percentage of the total investments in debt securities:

Investment Type Fair Value Less than 1 year 1 to 5 6 to 10 over 10 U.S. Government Securities 18,972$ -$ -$ 3,569$ 15,403$ U.S. Agency Securities 22,346 2,764 15,658 938 2,986 Corporate Bonds 39,225 - 25,145 13,650 430 Asset-Backed Securities 33,344 261 5,928 6,246 20,909 Short-Term Investments 34,032 34,032 - - -

147,919$ 37,057$ 46,731$ 24,403$ 39,728$

Pension Fund Investments (in thousands) (1)

Investm ent Type Fair Value Less than 1 year 1 to 5 6 to 10 over 10

Short-term investments 924$ 924$ -$ -$ -$ 924$ 924$ -$ -$ -$

OPEB Fund Investments (in thousands)

Prince George's County, Maryland Notes Financial Statements

(c) Credit Risk

Credit risk involves disclosing the credit quality of investments in debt securities as described by nationally recognized rating agencies. The Primary Government’s investment policy prescribes the following credit quality standards. Bankers’ acceptances and commercial paper must have a debt rating in the highest letter and numerical rating by at least one nationally recognized statistical rating organization as designated by the SEC. As of June 30, 2019, the primary government had investments in the following issuers with credit quality ratings as a percent of the total investments in debt securities:

The Pension Plans’ policies do not address credit quality, except a requirement that no more than 5% of investments can be committed to government sponsored entities unless they are AAA rated. During fiscal year 2019 the Plans’ investments in government sponsored entities with ratings below AAA exceeded the 5% limit. As of June 30, 2019, the Plans had investments in the following issuers with credit quality ratings as a percentage of the total investments in debt securities:

Investment Type Amount Moody's % Investment Type Amount S&P %

U.S. Agency Securities 36,822$ Aaa 24.89% U.S. Agency Securities 20,767$ NR 14.04%

U.S. Agency Securities 1,222 AA U.S. Agency Securities 19,938 AA 13.48%

U.S. Agency Securities 3,275 NR 2.21% U.S. Agency Securities 614 AAA 0.42%

Short-Term Investments 34,032 NR 23.01% Short-Term Investments 34,032 NR 23.01%

Corporate Bonds - Aa 0.00% Corporate Bonds 751 AA 0.51%

Corporate Bonds 37,656 A 25.46% Corporate Bonds 27,266 A 18.43%

Corporate Bonds - BBB 0.00% Corporate Bonds 11,206 BBB 7.58%

Corporate Bonds 1,568 NR 1.06% Corporate Bonds 1 NR 0.00%

Mortgage-Backed Securities 33,344 NR 22.54% Mortgage-Backed Securities 33,344 NR 22.54%

147,919$ 147,919$

Pension Fund Investments

Credit Risk

52

Prince George's County, Maryland Notes Financial Statements

(d) Concentration of Credit Risk

Concentration risk is the risk of loss attributed to the magnitude of the Pension Plans’ investment in a single issuer. The Primary Government’s investment policy establishes maximum percentages of the portfolio for an investment class. These percentages apply at the time the investment is purchased and may be overridden to satisfy liquidity requirements. The investment policy limits certain investments to less than 5% of total investments. The percentages are as follows:

Investment Type Name Maximum %

U.S. Government Securities 100%

U.S. Agency Securities 90%

Repurchase Agreements 80%

Certificates of Deposit and Time Deposits 80%

Bankers' Acceptances 50%

Commercial Paper 5%

Pooled Investments 100%

Municipal Securities and Municipal Money Market Mutual Funds 100%

Primary Government Investments

The OPEB Plan had no investments that exceed 5% that are required to be reported.

The Pension Plan policy limits certain investments to less than 5% of total investments. The following investments represent over 5% of total investments with a single investor:

Police Fire Service Other

State Street /PIMCO

Bond Fund 104,078,026$ 47,520,929$ 63,304,956$

Percentage 10.01% 9.59% 12.06%

State Street /Causway International

Equity Fund 78,279,828 38,763,007 -

Percentage 7.53% 7.83% 0.00%

State Street /Dollar Senior Loan Offshore FD

Alternative Investments 52,257,799 - -

Percentage 5.03% 0.00% 0.00%

State Street / SSGA S&P 500

Equity Fund 64,141,109 32,443,231 -

Percentage 6.17% 6.55% 0.00%

State Street / Ballie Gifford Funds

Equity Fund 56,369,562 28,098,272 -

Percentage 5.42% 5.67% 0.00%

Pension Plans

53

Prince George's County, Maryland Notes Financial Statements

(e) Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the County or the Plans will not be able to recover deposits or collateral securities that are in the possession of an outside party. Deposits include bank accounts and non-negotiable certificates of deposit. Deposits at financial institutions were fully insured or collateralized at year-end.

Cash in Bank 37,574$

Outstanding Checks in Zero Balance Accounts (1,728)

Investments 1,378,235

1,414,081$

Primary Government Cash and Investments Balances (in thousands)

as of June 30, 2019

Custodial credit risk for investments is the risk that securities are uninsured, unregistered, and held by the counterparty, or by its trust department or agent, but not in the County or the Plans’ name. As of June 30, 2019, there were no investments exposed to custodial credit risk.

(f) Foreign Currency Risk

Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The primary government’s policy does not allow investments in foreign denominations. The Pension Plans’ policy allows the Plans to invest in foreign currency denominations but does not address foreign currency exposure. The table below lists the Plans’ foreign currency exposure for fixed income and equity securities as of June 30, 2019.

Local Currency Equity

Fixed

Income Other Total %

Australian Dollar 2,440 - 868 3,308 0.16%

Canadian Dollar 3,248 167 8,923 12,338 0.59%

Danish Krone 222 - 3 225 0.01%

Euro Currency 9,061 257 9,299 18,617 0.90%

Hong Kong Dollar 963 24 - 987 0.05%

Japenese Yen 6,560 105 - 6,665 0.32%

New Zealand Dollar 98 5 - 103 0.00%

Norwegian Krone 441 190 - 631 0.03%

Pound Sterling 5,008 166 2,997 8,171 0.39%

Singapore Dollar - 36 - 36 0.00%

South Korean Won 977 - - 977 0.05%

Swedish Krona 1,108 112 - 1,220 0.06%

Swish Franc 1,384 30 - 1,414 0.07%

Total Foreign Holdings 31,839$ 1,092$ 22,090$ 55,021$

Foreign Currency Exposure

Other Pension Fund Investments (in thousands)

54

Prince George's County, Maryland Notes Financial Statements

(g) Securities Lending

The Board of Trustees for the Pension Plans authorizes the lending of securities to broker-dealers for collateral that will be returned for the same securities in the future. The collateral securities, letters of credit and cash are initially pledged at 100% of the market value of the securities lent and revalued daily to ensure that the collateral does not fall below 100%. The Plans are indemnified of credit risk as it relates to counterparty loan activity. The collateral securities and letters of credit cannot be sold or pledged unless the borrower defaults. As a result, such amounts have not been reported as assets and liabilities in the combined statement of plan net position of the Pension Trust Funds. Cash collateral is invested in the Plans’ custodian’s short-term investment pool, which at year-end had an average duration of 23 days and an average weighted maturity of 105 days. As of the date of the report the duration pool had an average duration of 20 days and an average weighted maturity of 1,697 days for USD collateral. The relationship between the maturities of the investment pool and the Plans’ loans is affected by the maturities of the securities loans made by other entities that use the pool, which the Plans cannot determine. Securities lent for cash collateral are unclassified in the Combined Statement of Plan Net Position. Securities lent for securities or letters of credit collateral are classified according to the category of custodial risk for the collateral. The collateral held and the fair value of securities on loan as of June 30, 2019 totaled $23,577,864 and $23,091,864, respectively. Cash collateral held, amounting to $9,984,093 is included as an asset and liability in the accompanying financial statements at year-end.

(h) Derivatives

The Investment Policy of the Pension Plans allows the plans to invest in certain derivatives in order to increase potential earnings and hedge against potential losses. In fiscal year 2019 the Plans invested directly in various derivatives including futures contracts, forward currency contacts, and rights. During the fiscal year, the plans had the following derivative instrument activity:

Investment Type Notional Amount

Changes in Fair

Value Classification

Fair Value at

June 30, 2019

Rights 7,900$ 8,485$ Common Stock 12,415$

Warrants - - Common Stock -

Total 7,900$ 8,485$ 12,415$

55

Prince George's County, Maryland Notes Financial Statements

(5) Interfund Receivables, Payables, and Transfers

Interfund balances for the Primary Government as of June 30, 2019 are as follows:

Due from/to other funds:

Receivable Fund Payable Fund Amount

General Fund Capital Projects 58,000,000$

Watershed Protection Fund 7,000,000

Trust Fund - OPEB 1,700,000

66,700,000$

Due from/to other entities:

Receivable Entity Payable Entity Amount

Component Unit - Redevelopment Authority Primary Government - General Fund 7,497,098

Component Unit - Revenue Authority Primary Government - General Fund 312,105$

Component Unit - Board of Education Primary Government - Capital Projects Fund 43,531,177

Component Unit - Memorial Library Primary Government - Capital Projects Fund 699,684

Component Unit - Community College Primary Government - Capital Projects Fund 628,782

52,668,846$

Primary Government - General Fund Component Unit - Housing Authority 6,018,453$

Primary Government - General Fund Component Unit - Community Television 450,000

Primary Government - General Fund Component Unit - Revenue Authority 310,329

Primary Government - Internal Service Funds Component Unit - Memorial Library 255,677

Primary Government - Internal Service Funds Component Unit - Community College 14,119

Primary Government - Internal Service Funds Component Unit - Board of Education 951,211

7,999,789$

The balance due to the General Fund from other funds is the result of temporary borrowing to cover cash deficits. Amounts due from component units are related to risk management or other contractual agreements.

Interfund transfers for the Primary Government as of June 30, 2019 are as follows:

Transfers from/to other funds:

Transfers From Transfers To Amount

General Fund Nonmajor Governmental Funds 126,057,681$

General Fund Capital Projects 27,378,459

General Fund Nonmajor Governmental Funds 82,000

General Fund Computer Services Fund 2,000,000

General Fund Housing Investment Trust 2,500,000

158,018,140$

Transfers are to support contributions to grants, capital projects, and debt service.

56

Prince George's County, Maryland Notes Financial Statements

(6) Due from Other Governmental Units

The State owes the Primary Government $128,749,883 for its share of income tax collections. The other Primary Government amounts are primarily grant-related receivables. A summary of amounts due from other governmental units at June 30, 2019 is listed below:

State of Federal Other

Maryland Government Sources Total

Primary Government $ 209,287,394 $ 19,467,229 $ 8,933,634 $ 237,688,257

Component Units:

Board of Education 20,689,100 16,811,761 175,484 37,676,345

Other Component Units 700,000 439,996 2,027,957 3,167,953

Total 21,389,100 17,251,757 2,203,441 40,844,298

Total Reporting Entity $ 230,676,494 $ 36,718,986 $ 11,137,075 $ 278,532,555

(7) Capital Assets

(a) Governmental Activities

Changes in capital assets during fiscal year 2019 were as follows:

Balance Disposals and Balance

July 1, 2018 Additions June 30, 2019

Primary Government:

Capital assets, not being depreciated:

Land 106,500,344$ $ 3,156,239 $ - $ 109,656,583

Construction in progress 125,380,851 84,710,889 32,894,464 177,197,276 Total capital assets, not being depreciated: 231,881,195 87,867,128 32,894,464 286,853,859

Capital assets, being depreciated:

Buildings and improvements 708,540,452 7,020,647 - 715,561,099

Equipment 212,190,166 20,563,670 10,386,774 222,367,062

Infrastructure 3,003,701,633 57,421,699 - 3,061,123,332

Total capital assets, being depreciated: 3,924,432,251 85,006,016 10,386,774 3,999,051,493

Less accumulated depreciation for:

Buildings and improvements 188,363,337 15,774,653 - 204,137,990

Equipment 164,364,444 17,562,462 10,362,685 171,564,221

Infrastructure 1,316,295,409 52,766,373 - 1,369,061,782

Total accumulated depreciation 1,669,023,190 86,103,488 10,362,685 1,744,763,993

Total capital assets being depreciated, net 2,255,409,061 (1,097,472) 24,089 2,254,287,500

Governmental activities capital assets 2,487,290,256$ $ 86,769,656 $ 32,918,553 $ 2,541,141,359

Completed Construction

57

Prince George's County, Maryland Notes Financial Statements

Depreciation expense was charged to functions/programs of governmental activities as follows:

Governmental Activities:

General government 15,376,291$

Public safety 20,460,187

Environmental 444,640

Health and Human Services 571,952

Infrastructure and Development 49,008,110

242,308

Total depreciation expense - governmental activities 86,103,487$

Capital assets being held by internal service funds are charged to the various functions

based on their usage of the assets

Construction of capital assets in progress for the Primary Government at June 30, 2019, exclusive of Proprietary Fund assets and improvements not capitalized, is as follows:

Expended through Project No. June 30, 2019

Training/Administration Headquarters 3.50.0006 $ 57,406,400

Blight Eradication Program 8.54.0002 894,634

Other public facilities Various 5,339,855

Other library projects Various 26,904,503

Public safety projects Various 46,426,332

Other road and bridge projects Various 40,225,552

Total Primary Government $ 177,197,275

58

Prince George's County, Maryland Notes Financial Statements

(b) Business-type Activities

Changes in capital assets during fiscal year 2019 were as follows:

Balance Disposals and Balance

July 1, 2018 Additions June 30, 2019

Capital assets, not being depreciated:

Land/Land Infrastructure $ 27,072,977 $ - $ - $ 27,072,977

Construction in progress* 283,086,503 59,006,774 18,050,237 324,043,040

Total capital assets, not being depreciated: 310,159,480 59,006,774 18,050,237 351,116,017

Capital assets, being depreciated:

Buildings and improvements 34,621,730 - - 34,621,730

Equipment and vehicles 25,554,021 802,838 470,254 25,886,605

Landfill property in service 121,336,027 18,050,237 - 139,386,264

Stormwater property in service 199,539,940 - - 199,539,940

Total capital assets being depreciated: 381,051,718 18,853,075 470,254 399,434,539

Less accumulated depreciation for:

Buildings and improvements 18,661,628 858,947 - 19,520,575

Equipment and vehicles 23,824,658 806,284 470,256 24,160,686

Landfill property in service 118,639,356 6,115,045 - 124,754,401

Stormwater property in service 69,688,616 4,389,872 - 74,078,488

Total accumulated depreciation 230,814,258 12,170,148 470,256 242,514,150

Total capital assets being depreciated, net 150,237,460 6,682,927 (2) 156,920,389

Business-type activities capital assets $ 460,396,940 65,689,701 18,050,235 508,036,406

* Includes Contruction in Progress for Water Quality Fund.

Completed Construction

Depreciation expense was charged to functions / programs of the business-type activities as follows:

Solid Waste Fund $ 7,780,276

Stormwater Management Fund 4,389,871

Total depreciation expense - business-type activities $ 12,170,147

As of June 30, 2019, construction requisitions outstanding for governmental and proprietary funds of the Primary Government totaled approximately $33.4 million and $17 million, respectively.

59

Prince George's County, Maryland Notes Financial Statements

Balance Disposals and Balance

July 1, 2018 Additions June 30, 2019

Capital assets, not being depreciated:

Land/Land Infrastructure $ 15,766,896 $ - $ - $ 15,766,896

Construction in progress 188,287,343 26,670,199 - 214,957,542

Total capital assets, not being depreciated: 204,054,239 26,670,199 - 230,724,438

Capital assets, being depreciated:

Buildings and improvements 242,525 - - 242,525

Equipment and vehicles 3,990,467 - 121,924 3,868,543

Stormwater property in service 199,539,940 - - 199,539,940

Total capital assets being depreciated: 203,772,932 - 121,924 203,651,008

Less accumulated depreciation for:

Buildings and improvements 242,525 - - 242,525

Equipment and vehicles 3,990,467 - 121,922 3,868,545

Stormwater property in service 69,688,616 4,389,872 - 74,078,488

Total accumulated depreciation 73,921,608 4,389,872 121,922 78,189,558

Total capital assets being depreciated, net 129,851,324 (4,389,872) 2 125,461,450

Stormwater Management Fund capital assets $ 333,905,563 22,280,327 2 356,185,888

Changes in capital assets for the Solid Waste Fund during 2019 were as follows:

Balance Disposals and Balance

July 1, 2018 Additions June 30, 2019

Capital assets, not being depreciated:

Land $ 11,306,081 - - 11,306,081

Construction in progress 42,360,758 6,036,543 18,050,237 30,347,064

Total capital assets, not being depreciated: 53,666,839 6,036,543 18,050,237 41,653,145

Capital assets, being depreciated:

Buildings and improvements 34,379,205 - - 34,379,205

Equipment and vehicles 21,563,556 802,838 348,332 22,018,062

Landfill property in service 121,336,027 18,050,237 - 139,386,264

Total capital assets being depreciated: 177,278,788 18,853,075 348,332 195,783,531

Less accumulated depreciation for:

Buildings and improvements 18,419,103 858,947 - 19,278,050

Equipment and vehicles 19,834,191 806,283 348,331 20,292,143

Landfill property in service 118,639,356 6,115,045 - 124,754,401

Total accumulated depreciation 156,892,650 7,780,275 348,331 164,324,594

Total capital assets being depreciated, net 20,386,138 11,072,800 1 31,458,937

Solid Waste Fund capital assets $ 74,052,977 17,109,343 18,050,238 73,112,082

Completed Construction

Completed Construction

• Watershed Restoration and Protection Fund’s capital assets consisted of construction in progress of $78,738,434. See next page.

60

Prince George's County, Maryland Notes Financial Statements

Construction in progress in the enterprise funds as of June 30, 2019 consists of the following:

Primary Government - Business-type Activities:

o Stormwater Management Enterprise Fund

- Stormdrain Relief Program (5.54.0005) $ 24,291,990

- Water Quality Control Facility (5.54.0006) 1,132,478

- Anacostia Retrof it (5.54.0008) 3,424,261

- Street Tree Removal & REplacement (5.66.0001) 726,744

- Stormw ater Management Restoration (5.66.0002) 30,466,803

- Watershed Implementation Plan II (5.54.0017) 10,669,347

- Major Reconstruction – DOE (5.54.0011) 44,271,215

- Major Reconstruction – DPWT (5.66.0003) 9,640,695

- Clean Water Partnership/NPDES (5.54.0018) 45,524,260

- COE Anacostia Restoration (5.54.0012) 6,320,660

- MS4/NPDES Compliance & Restoration (5.54.0019) 27,227,036

- Bladensburg Environmental Revitalization (5.54.0013) 6,863,548

- Other miscellaneous projects 4,398,505

214,957,542

o Solid Waste Enterprise Fund

- Brown Station Landfill Expansion (5.54.0001) 17,510,826

- Rural Convenience Center (5.54.0002) 318,703

- Sandy Hill Landfill Expansion (5.54.0003) 3,167,862

- Commercial Manufacturer/Waste Transfer Station (5.54.0004) 920,777

- Organics Composting Facility 6,805,391

- Materials Recycling Facility 1,623,505

30,347,064

o Watershed Protection and Restoration Fund (5.54.0018) 78,738,434

Total Primary Government - Business-type Activites $ 324,043,040

61

Prince George's County, Maryland Notes Financial Statements

62

(c) Component Units Capital Assets Activity

BOE Balance Disposals and Balance June 30, 2018 Additions June 30, 2019

Capital assets, not being depreciated:

Land 25,968,979$ $ 151,300 $ - $ 26,120,279

Construction in progress 60,451,711 94,519,026 100,417,384 54,553,353

Total capital assets, not being depreciated: 86,420,690 94,670,326 100,417,384 80,673,632

Capital assets, being depreciated:

Buildings and improvements 2,061,477,659 114,689,289 2,176,166,948

Equipment and vehicles 218,878,710 5,723,598 1,306,406 223,295,902

Total capital assets, being depreciated: 2,280,356,369 120,412,887 1,306,406 2,399,462,850

Less accumulated depreciation for:

Buildings and improvements 866,882,943 75,185,204 942,068,147

Equipment and vehicles 122,061,835 4,822,619 795,452 126,089,002

Total accumulated depreciation 988,944,778 80,007,823 795,452 1,068,157,149

Total capital assets being, depreciated, net 1,291,411,591 40,405,064 510,954 1,331,305,701

Component units capital assets 1,377,832,281$ $ 135,075,390 $ 100,928,338 $ 1,411,979,333

Changes in other component units' capital assets during fiscal year 2019 were as follows:

Balance Disposals and Balance June 30, 2018 Additions June 30, 2019

Capital assets, not being depreciated:

Land 87,593,963$ $ 648,026 $ 2,238,042 $ 86,003,947

Construction in progress 75,327,538 26,561,847 - 101,889,385

Total capital assets, not being depreciated: 162,921,501 27,209,873 2,238,042 187,893,332

Capital assets, being depreciated:

Buildings and improvements 288,708,707 2,487,773 5,983,855 285,212,625

Equipment and vehicles 60,070,298 6,904,007 3,039,239 63,935,066

Total capital assets, being depreciated: 348,779,005 9,391,780 9,023,094 349,147,691

Less accumulated depreciation for:

Buildings and improvements 101,532,692 11,013,805 1,422,969 111,123,528

Equipment and vehicles 49,541,768 4,745,661 2,820,603 51,466,826

Total accumulated depreciation 151,074,460 15,759,466 4,545,770 162,590,354

Total capital assets being, depreciated, net 197,704,545 (6,367,686) 4,477,324 186,557,337

Component units capital assets 360,626,046$ $ 20,842,187 $ 6,715,366 $ 374,450,669

Completed Construction

Completed Construction

Prince George's County, Maryland Notes Financial Statements

(8) Risk Management

Details of estimated liabilities on pending claims, by fund, at June 30, 2019 are as follows:

Risk Management Other

Pools Self-Insurance Total

Primary Government:

Internal Service Funds:

Unemployment Compensation -$ 138,516$ 138,516$

Property Loss 136,200 - 136,200

Automobile Liability 3,388,087 - 3,388,087

Workers' Compensation 151,620,308 - 151,620,308

General Liability 11,409,772 - 11,409,772

Life and Health Benefits - 4,806,000 4,806,000

Total Internal Service Funds 166,554,367 4,944,516 171,498,883

Total Primary Government 166,554,367$ 4,944,516$ 171,498,883$

The Primary Government, together with the Board of Education, the Board of Trustees for Prince George's Community College, and the Board of Trustees of Prince George's County Memorial Library are exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County maintains various pooled risk management Internal Service Funds (comprised of the above-mentioned members) to account for and finance its uninsured losses. Under this program, the County is an approved self-insurer by the State of Maryland, and as such, is subject to provide coverage according to State mandatory limits of $500,000 per injury. Property coverage is self- insured for $250,000 per incident with excess insurance above this level provided by American International Group, Inc. (AIG), which includes replacement values of both structures and contents. Liability coverage is self-insured. The County has a liability limit under the State Tort Claims Act of $400,000 per person not to exceed $800,000 per incident for all participants with the exception of the Board of Education, which retains immunity at $400,000 per incident. These limits do not apply to claims brought under Federal jurisdiction.

Participants of the risk management pools normally make contributions based upon prior experience with evaluations conducted annually by an actuary. In fiscal year 2019, the Primary Government made contributions amounting to $56,367,777. The actuarially computed claims liability has been discounted at a rate of 1.328 percent, based on the pool's investment yield rate and current economic conditions. There were no settlements in excess of the insurance coverage in any of the three prior fiscal years.

The total claims liability of $166,554,367 reported for the risk management pools at June 30, 2019 is based upon the requirements of GAAP, which requires that a liability for claims be recognized if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated, including claims incurred but not reported. The liability estimates are supported by an independent actuarial review made as of June 30, 2019. The funds do not utilize annuity contracts from commercial insurers; therefore, all known liabilities have been disclosed during this reporting period. Changes in the funds’ claims liability amounts in fiscal years 2018 and 2019 were as follows:

Balance at Beginning of

Fiscal Year

Current Year Claims and

Changes in Estimates Claim Payments

Balance at End of Fiscal

Year

Fiscal year 2018 162,309,597$ $ 38,265,452 $ (49,480,447) $ 151,094,602

Fiscal year 2019 151,094,602 58,857,521 (43,397,756) 166,554,367

63

Prince George's County, Maryland Notes Financial Statements

The following is a summary of the fiscal year 2019 claims expense by fund:

Total Claim

Payments

Liability on

Pending Claims

Adjustment

Total Claims

Expenses

Property Loss Fund 184,519$ (37,891)$ 146,628$

Auto Liability Fund 2,549,636 1,004,905 3,554,541

Workers' Compensation Fund 35,935,733 12,656,693 48,592,426

General Liability Fund 4,727,868 1,836,058 6,563,926

43,397,756$ 15,459,765$ 58,857,521$

The Primary Government maintains separate Internal Service Funds for unemployment compensation and life and health benefits. An independent actuary is involved in evaluating contribution levels and estimated claims for Life and Health Benefits. Changes in these funds’ claims liability amounts in fiscal years 2018 and 2019 were as follows:

Balance at Beginning of

Fiscal Year

Current Year Claims and

Changes in Estimates Claim Payments

Balance at End of Fiscal

Year

Fiscal year 2018 13,884,309$ $ 59,897,343 $ (65,484,378) $ 8,297,274

Fiscal year 2019 8,297,274 58,817,749 (62,170,507) 4,944,516

(9) Pension Plans

(a) Primary Government

Employees of the Primary Government participate in the following pension plans:

The majority of employees participate in the statewide local government retirement system pension plan listed below. It is a cost-sharing, multiple-employer, defined benefit pension plan administered by the Maryland State Retirement and Pension System (MSRPS)], in accordance with Article 73B of the annotated Code of Maryland.

• Employees Retirement and Pension System of Maryland

Public safety employees of the Primary Government may participate in the following single-employer, defined benefit pension plans:

• Police Pension Plan • Fire Service Pension Plan • Deputy Sheriff’s Comprehensive Pension Plan • Correctional Officers’ Comprehensive Pension Plan

Qualified employees can also supplement the State Retirement and Pension System plan with one of the following single-employer, defined benefit "Supplemental Plans":

• Deputy Sheriffs’ Supplemental Pension Plan • Correctional Officers' Association Supplemental Pension Plan • AFSCME Local 241 (Crossing Guards) Supplemental Pension Plan • AFSCME Local 2462, and 2735 Supplemental Pension Plan • General Schedule Employees Supplemental Pension Plan • Fire Civilian Supplemental Pension Plan • Police Civilian Supplemental Pension Plan

64

Prince George's County, Maryland Notes Financial Statements

(i) Plans Administered by the State Retirement and Pension System of Maryland (MSRPS) - [Multiple-employer, Cost-sharing, Defined Benefit Pension Plans]

Qualified full-time and permanent part-time general service employees and officers of the Primary Government participate in the statewide Retirement System or Pension System plans administered by the MSRPS. Effective June 1, 1984, employees who were members of a Retirement System on December 31, 1979, could elect to join a Pension System or remain in a Retirement System. All employees hired on or after January 1, 1980, are required to join the Pension System. All MSRPS plans have provisions for early retirement, death, and disability benefits.

Article 73B of the Annotated Code of Maryland assigns the authority to establish and amend benefit and contribution provisions to SRPS' Board of Trustees. MSRPS issues a publicly available financial report that includes financial statements and required supplementary information on the Plans. Requests for copies of annual financial reports should be addressed to MSRPS' administrative offices located at 120 East Baltimore Street, Baltimore, Maryland 21202, or can be made by telephoning (410) 625-5555 or 1-800-492-5909.

Participants of the Pension System plan contribute 5% of earnings above the Social Security wage base and may retire with full benefits after 30 years of service regardless of age or at age 62 or older with specified years of service. Retirement benefits are based on the participant's highest average annual compensation during any 3 consecutive years of credited service.

Participants of the Retirement System plan contribute 7% of annual compensation and upon retirement are entitled to unlimited cost-of-living adjustments or a contribution of 5% of annual compensation and upon retiring are limited to 5% cost-of living increases annually. Retirement System participants may retire with full benefits after attaining age 60, or after completing 30 years of service, regardless of age. Annual retirement benefits are equal to 1/55 of the average of the participant's three highest years of annual compensation, multiplied by the number of years of credited service. The Primary Government made the actuarially required contributions of $15,393,657 for fiscal year 2019.

(ii) Police, Fire Service, Deputy Sheriff's, Correctional Officers', and Supplemental Pension Plans [Single-Employer, Defined Benefit Pension Plans]

Plan Descriptions

The Primary Government has adopted the Police Pension Plan, Fire Service Pension Plan, Deputy Sheriff's Comprehensive Pension Plan, Correctional Officers' Comprehensive Pension Plan, Deputy Sheriff's Supplemental Pension Plan, Correctional Officers' Association Supplemental Pension Plan, AFSCME Local 241 (Crossing Guards) Supplemental Pension Plan, AFSCME Locals 1691, 2462, and 2735 Supplemental Pension Plan, General Schedule Employees Supplemental Pension Plan, Fire Civilian Supplemental Pension Plan, and Police Civilian Supplemental Pension Plan. The Pension Plans provide retirement and disability benefits for all full-time employees. Administrative, investment, and member benefit service responsibilities are provided by a separate Board of Trustees for each Plan. Such Trustees have the authority to amend benefit provisions and contribution requirements. Currently, each Plan has the same Retirement Administrator, who is an employee of the Primary Government.

Normal retirement is at age 55 or after 20 years of service for firefighters, paramedics, deputy sheriffs and correctional officers under the Comprehensive Plans. Police officers hired after June 30, 2017 are eligible to retired with 25 years of services. For AFSCME Local 241 (Crossing Guards), AFSCME Locals 2462 and 2735, general schedule employees, and deputy sheriffs under the supplemental plan, normal retirement age is the earliest of age 62 with 5 years of service, age 55 with 15 years of service, any age with 30 years of service, or 25 years of service for deputy sheriff's. For correctional officers under the supplemental plan, normal retirement is the earliest of age 60 or 25 years of County service.

Retirement benefits are calculated as a percentage of average compensation, with such percentage determined by length of credited service up to a maximum of 85% for 30 years of service for police officers, firefighters, paramedics, deputy sheriffs, and correctional officers under the Comprehensive Plans. For general schedule, fire civilian employees, AFSCME Locals 2462, and 2735, and police civilian employees the maximum retirement benefit is 30% for 30 years of service, 22.5% for 30 years of service for AFSCME Local 241 (crossing guards), 36% for 30 years of service for deputy sheriff's, and 38.75% for 30 years of service for correctional officers under the Supplemental Plans.

The Pension Plans are classified by the Primary Government as Pension Trust Funds and separate financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenue in the period in which employee services are performed and expenses, benefits, and refunds are recognized when corresponding liabilities are incurred, regardless of when payment is made. Investments of the pension funds, represented by equity in pooled pension trust funds and cash and investments are carried at market value (or at a fair value when a quoted market value is not available) as reported by the investment managers. Complete separate financial statements may be obtained at the following address: Prince George's County Office of Personnel, 1400 McCormick Drive, Room 110, Largo, Maryland 20774.

65

Prince George's County, Maryland Notes Financial Statements

Funding Policy

Contributions to the Plans for 2019 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of July 1, 2018. The Primary Government's fiscal year 2019 total payroll was $590,544,009. Employee contribution rates are determined by collective-bargaining agreements or by the Board of Trustees for each Plan. Participant contributions are included in the plan assets and are 100% vested with the employee. Upon termination of employment, a participant may elect to receive a refund of contributions; if there has been at least five years of credited service, the participant may instead elect a retirement annuity upon attaining retirement age. Participants begin vesting in employer contributions after 5 years of credited service.

The contribution rates as a percentage of covered payrolls during fiscal year 2019 were as follows:

Employee

Rates

Employer

Rates

Comprehensive Plans:

Police 6.00 % 50.64 %

Fire Service 6.00 62.60

Deputy Sheriff's 10.00 41.31

Correctional Officers' 12.00 36.40

Supplemental Plans:

Deputy Sheriff's 5.20 $ 849,800.00 *

Correctional Officers' 5.75 42.65

Crossing Guards 4.78 6.08

AFSCME 1.30 5.91

General Schedule 3.34 7.43

Fire Civilian 4.43 11.40

Police Civilian 4.14 5.10

For the Police Pension Plan, officers hired on or before July 1, 2013, contribute 9% for the first five years, 8% for the second five years an 6% thereafter. Officers hired after July 1, 2013, contribute 9% of pay. For the Fire Service Pension Plan, members hired before July 1, 2008, contribute 6% of basic compensation and members hired on or after July 1, 2008, contribute 10% of basic compensation. For the Deputy Sheriffs’ Pension Plan, 10% of base pay (11% of base pay for employees hired on or after July 1, 2005). For the correctional Officers Pension Plan, 12% of base pay (13% of base pay for officers hired on or after July 1, 1995).

Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions

At June 30, 2019, the County reported a liability of $144,925,413 for its proportionate share of the net pension liability of the MSRPS. The net pension liability was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability was determined by and actuarial valuation as of that date. As of June 30, 2019, the County’s proportionate share was 0.6907% a decrease of .071 % from prior year.

At June 30, 2019, the County reported a liability of $1,391,754,125 for its other County Plans. The total pension liability, net pension liability, and certain sensitivity information shown in this report are based on an actuarial valuation performed as of July 1, 2018. The total pension liability was rolled forward from the valuation date to the plan year ending June 30, 2019 using generally accepted actuarial principles.

66

Prince George's County, Maryland Notes Financial Statements

For fiscal year ended June 30, 2019, the County recognized pension expense of $216,868,388.

Net Pension

Liability Pension Expense

Proportionate share of MSRPS $ 144,925,413 $ 17,750,342

County Plans

Comprehensive Plans:

Police 681,911,854 87,212,815

Fire Service 423,104,770 69,685,683

Deputy Sheriff's 73,533,748 10,732,535

Correctional Officers' 112,029,165 13,795,726

Supplemental Plans:

Deputy Sheriff's 4,757,780 1,015,130

Correctional Officers' (199,822) 306,412

Crossing Guards 1,239,028 308,695

AFSCME 13,195,721 3,137,727

General Schedule 64,551,422 10,689,231

Fire Civilian 4,696,234 508,499

Police Civilian 12,934,225 1,725,593

Total $ 1,536,679,538 $ 216,868,388

The County's change in total pension liability, plan fiduciary net position and net pension liability for the County Plans for the year ended June 30, 2019, was as (in thousands) follows:

Total Pension

Liability

Plan Fiduciary Net

Position

Net Pension

Liability

(A) (B) (A)-(B)

Balance as of June 30, 2018 3,221,122,525$ 1,998,166,998$ 1,222,955,527$

Service Cost 76,952,000 - 76,952,000

Interest 237,343,576 - 237,343,576

Differences between expected and actual experience 8,782,829 - 8,782,829

Assumption Changes 125,630,804 - 125,630,804

Contributions-employer - 145,318,257 (145,318,257)

Contributions-employee - 27,847,358 (27,847,358)

Net Investment - 109,237,325 (109,237,325)

Benefit Payments, including refunds of employee

contributions (192,117,029) (192,117,029) -

Administrative expenses - (2,492,329) 2,492,329

Balance as of June 30, 2019 3,477,714,705$ 2,085,960,580$ 1,391,754,125$

67

Deferred Outflow of Resources

Deferred Inflow of Resources

Changes in Assumptions Proportionate share of MSRPS $ 4,318,702 $ -

Police 46,185,121 - Fire Service 20,666,199 - Deputy Sheriff's 9,879,677 - Correctional Officers' 8,655,436 -

Supplemental Plans Crossing Guards 166,242 - AFSCME - 497,054 General Schedule 4,381,773 - Fire Civilian 55,939 - Police Civilian 3,560,915 -

Changes in Proportions Proportionate share of MSRPS 14,119,631 14,140,411

Difference between expected and actuarial experience Comprehensive Plans: Difference between expected and actuarial experience of MSRPS 11,198,620 Proportionate share of MSRPS 925,474 -

Police 9,308,045 17,016,231 Fire Service 6,459,508 8,453,022 Deputy Sheriff's 1,186,426 1,404,486 Correctional Officers' 2,675,877 8,743,463

Supplemental Plans Crossing Guards 290,500 10,442 AFSCME 687,686 3,471,752 General Schedule 5,261,017 1,793,077 Fire Civilian 587,935 447,823 Police Civilian 1,031,319 -

Net difference between projected and actual earnings on pension plan investments Proportionate share of MSRPS 5,889,786 - Comprehensive Plans:

Police - 14,516,881 Fire Service - 6,083,132 Deputy Sheriff's - 255,216 Correctional Officers' - 675,140

Supplemental Plans Deputy Sheriff's - 22,811 Correctional Officers' - 82,720 Crossing Guards - 8,243 AFSCME - 537,870 General Schedule - 796,328 Fire Civilian - 50,972 Police Civilian - 129,073

County contributions subsequent to the measurement Proportionate share of MSRPS 15,393,657 -

$ 161,686,865 $ 90,334,767

Prince George's County, Maryland Notes Financial Statements

At June 30, 2019, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

68

Prince George's County, Maryland Notes Financial Statements

69

The $15,393,657 reported as deferred outflows of resources related to pensions resulting from the County’s contributions will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows:

Year Ended

June 30 MSRPS Other Plans Total

2020 4,280,348$ 25,695,991 29,976,339

2021 653,602 (8,544,403) (7,890,801)

2022 (5,073,675) (3,903,730) (8,977,405)

2023 (1,379,378) 23,798,469 22,419,091

2024 1,433,666 15,985,640 17,419,306

Thereafter - 3,011,892 3,011,892

Total (85,437)$ 56,043,859 55,958,422

Actuarially Assumptions

Mortality rates were based on RP-2014 Mortality Tables with projected generational mortality improvements based on the MP-2014 2-dimensional mortality improvement scale. The economic and demographic actuarial assumptions used in the June 30, 2018 valuation were adopted by the System’s Board of Trustees based upon review of the System’s experience study for the period 2010-2014, after completion of the June 30, 2014 valuations. Assumptions from the experience study including investment return, inflation, COLA increases, mortality rates, retirement rates, withdrawal rates, disability rates and rates of salary increase were adopted by the Board for the first use in the actuarial valuation as of June 30, 2015. As a result, an investment return assumption of 7.45% and an inflation assumption of 2.60% were used in the June 30, 2018 valuation.

Prince George's County, Maryland Notes Financial Statements

The total pension liability in the actuarial valuations was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Valuation Date June 30, 2018 Valuation Date July 1, 2018

Measurement Date June 30, 2018 Measurement Date June 30, 2019

Inflation 2.60% general, 3.10% Payroll

growth rate Inflation

2.5% general, 3.00% Payroll growth

rate

Salary Increases 3.10% - 9.10%, inflation Salary Increases 2.75% - 7.75%

Investment Rate of Return 7.45% Investment Rate of Return 7.25%

Inflation assumption changed from 2.65% to 2.60%

Investment rate of return changed from 7.50% to 7.45%

Experience-based table of rates that are specific to the type of

eligibility condition. Last updated for the 2012 valuation pursuant

to an experience study of the period 2006-2010.

Experience-based table of rates that are specific to the type of

eligibility condition. Updated for the 2018 valuation pursuant to

an experience study of the period 2014-2017.

MSRPS Plan County Plans

RP 2014 Health Annuitant Mortality Table with rates multiplied by

0.75 for males and 1.10 for females for non-disabled annuitants

and 1.00 and 1.35 for disabled annuitants.

RP 2000 Combined Healthy Mortality Table projected to the year

2025

There were no benefit changes during the year. Adjustments to

roll forward liabilities were made to reflect the following

assumption changes in the 2018 valuation

For the Police Pension Plan, the following death benefit provisions

have been added: (1) Effective January 1, 2016, the surviving

spouse of a participant who died while an active employee on or

before November 30, 2002, will receive a monthly annuity equal

to $1000 per month payable for the spouse's remaining lifetime.

(2) Effective July 1, 2016, the surviving spouse of a participant

who died while an active employee with 15 or more years of

service and did not meet normal retirement eligibility conditions

will receive a 50 percent contingent annuitant benefit.

70

Prince George's County, Maryland Notes Financial Statements

The long-term expected rate of return on pension plan investments are determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major class included in the pension plan’s target asset allocation are presented in the table below:

Long-Term Expected Long-Term Expected Asset Long-Term Expected Asset

Asset Class Target Allocation Real Rate of Return Asset Class Target Allocation Real Rate of Return Contribution Target Allocation Real Rate of Return Contribution

Public Equity 36.40% 3.90% Domestic Equity 22.50% 7.50% 1.69% 21.50% 7.50% 1.61%

Rate Sensitive 18.10% 9.30% International Equity 22.50% 8.50% 1.91% 21.50% 8.50% 1.83%

Credit Opportunity 8.90% 6.50% Domestic Bonds (1) 25.00% 2.50% 0.63% 27.00% 2.50% 0.68%

Absolute Return 7.40% 3.00% International Bonds 0.00% 3.50% 0.00% 0.00% 3.50% 0.00%

Private Equity 14.10% 13.70% Real Estate 10.00% 4.50% 0.45% 10.00% 4.50% 0.45%

Real Assets 13.30% 5.30% Alternative Assests (2) 20.00% 5.84% 1.17% 20.00% 5.71% 1.14%

Multi Asset 1.30% 4.40%

Cash 0.50%

(1) The long-term real return expectations removes the 2.5% inflation rate embedded in each nominal return assumptions.

(2) The 20% Alternative Assets long-term real return assumption represents a relational combination of the remaining 80% of the policy target.

* The Long Term Expected Real Rate of Return is an arithmetic calculation

MSRPS Police and Fire Service Plans Other Comperehensive and Supplemetal Plans

For the year ended June 30, 2018 the money-weighted weight of return on pension plan investments, net of pension plan investment expense, for the MSRPS was 8.08%. For the year ended June 30, 2019 the money-weighted weight of return on pension plan investments, net of pension plan investment expense, for the Police, Fire Service, and Other Comprehensive and Supplemental Plans was 5.54%, 5.74%, and 5.98% respectively. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

Discount Rate

Single discount rates of 7.45% and 7.25% were used to measure the total pension liability for the MSRPS and Other County Plans, respectively. The single discount rates were based on the expected rate of return on pension plan investments of 7.45 and 7.25%. The projection of cash flows used to determine this singe discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumption, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

71

Prince George's County, Maryland Notes Financial Statements

Sensitivity of the Net Pension Liability

Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan’s net pension liability, calculated using single discount rate that is 1- percent-point lower or 1-percentage-point higher

Current Single

Discount Rate

Plan (SDR) Assumption 1% Decrease SDR 1% Increase

MSRPS 7.45% 208,742,320$ 144,925,413$ 91,961,960$

Police 7.25% 893,994,632 681,911,854 506,040,492

Fire Service 7.25% 536,194,556 423,104,770 329,465,980

Deputy Sheriffs' Comprehensive 7.25% 92,787,271 73,533,748 57,439,365

Correctional Officers' Comprehensive 7.25% 144,905,270 112,029,165 84,693,297

Deputy Sheriffs' Supplemental 7.25% 5,607,058 4,757,780 4,029,139

Correctional Officers' Supplemental 7.25% 785,807 (199,822) (1,039,962)

Crossing Guards 7.25% 1,494,288 1,239,028 1,016,420

AFSCME 7.25% 26,233,016 13,195,721 2,167,323

General Schedule 7.25% 89,167,891 64,551,422 43,704,097

Fire Civilian 7.25% 6,101,593 4,696,234 3,497,560

Police Civilian 7.25% 17,899,174 12,934,225 8,824,632

2,023,912,876$ 1,536,679,538$ 1,131,800,303$

Sensitivity of Net Pension (Asset) Liability to the Single Discount Rate Assumption

Pension Plan Fiduciary Net Position

Detailed information about the pension plan’s net position is available in the separately issued financial reports. The MSRPS plan may be obtained on the Internet at http://www.sra.maryland.gov/Agency/Downloads/CAFR/; by writing to the MSRPS at 120 East Baltimore Street, Baltimore, Maryland 21202; or by calling (410)- 625-5555 or 1-800-492-5909. The County’s other reports may be obtained by contain the Prince George’s County Office of Personnel at 1400 McCormick Drive, Room 110, Largo, Maryland 20774.

72

Prince George's County, Maryland Notes Financial Statements

(b) Component Units

Generally, all employees of the Board of Education, the Housing Authority, the Community College, the Memorial Library, and certain employees of the PGCT participate in one of the statewide Employee's Retirement and Pension Systems or Teacher's Retirement and Pension Systems. Information covering the Housing Authority and PGCT is included with the Primary Government because those individuals are also employees of the Primary Government. Separate financial statements prepared for the Board of Education, Memorial Library, and Community College, are available to the general public [see note 1(a)] and reflect detailed information relevant to their participation in MSRPS. Review of these financial statements indicates the Component Units individually met the actuarially determined contribution requirements for fiscal years 2019, 2018, and 2017. Additional MSRPS information is included in the table below:

Board of

Education

Community

College

Memorial

Library

Proportionate share of MSRPS 0.86980% 0.01744% 0.01213%

Net Pension Liability 182,498,395$ 3,658,541$ 2,544,950$

Pension Expense 6,928,819 461,626 554,132

Deferred Outflows 48,536,007 1,066,531 620,211

Deferred Inflows 23,850,536 744,132 341,568

The State of Maryland is required to contribute certain amounts to the Teacher's Retirement and Pension Systems on behalf of the Board of Education, Community College, and Memorial Library. Such contributions, made by the State on behalf of these Component Units during fiscal year 2019 amounted to $110,120,429, $5,178,385 and $1,986,688, respectively, and are reflected in the Component Units’ financial statements.

In addition to the statewide plans mentioned above, the Community College also offers to its employees two single-employer, defined contribution pension plans. The State of Maryland made "on behalf" employer contributions totaling $1,004,663 to these plans during fiscal year 2019. The Revenue Authority established a single-employer, defined contribution pension plan for its employees on July 1, 1987. Detailed information concerning these plans may also be obtained from the separately issued financial reports of these Component Units.

(10) Postemployment Benefits Other Than Pensions

(a) Plan Description and Accounting Policies

Prince George's County, Maryland (the County) extends certain health care and life insurance benefits to retired persons. The legal authority for providing these benefits was established by the Prince George’s County Council (the Council); Executive Orders 42-1980 and 43A-1980, “Continuation of Life and Health Benefits at Retirement,” and certain collective bargaining agreements. The Prince George’s County Maryland Other Postemployment Benefit Plan (the OPEB Plan) is a single-employer defined benefit health care plan. All State Retirement and Pension System of Maryland (SRPS) and Comprehensive Pension Plan (Police, Fire Service Correctional Officers’, and Deputy Sheriffs’) retirees who are enrolled in a qualified plan at the time of retirement are eligible for medical insurance, vision care, prescription, and reduced coverage life insurance benefits. The OPEB Plan also includes employees of the Prince George’s Memorial Library and the Housing Authority of Prince George’s County. A description of the types of benefits and eligibility requirements is summarized below:

Medical Insurance

- All State Retirement and Pension System of Maryland, Police, Fire Service, Correctional Officers’ Comprehensive, and Deputy Sheriffs’ Comprehensive Pension Plan retirees who are enrolled in a qualified plan at the time of retirement may continue this benefit.

Life Insurance

- Reduced coverage is available to all State Retirement and Pension System of Maryland, Police, Fire Service, Correctional Officers’ Comprehensive, and Deputy Sheriffs’ Comprehensive Pension Plan retirees.

73

Prince George's County, Maryland Notes Financial Statements

Vision Care and Prescription Drug Insurance

- The County pays premium costs of this benefit for Police, Fire Service, Correctional Officers’ Comprehensive, and Deputy Sheriffs’ Comprehensive Plan retirees. State Retirement and Pension System of Maryland retirees pay 100% of the monthly cost for vision care and 75% for prescription insurance. The County pays the remaining 25% of prescription coverage.

The Plan is classified by the Primary Government as a Trust Fund and separate financial statements are prepared using the accrual basis of accounting. Complete separate financial statements may be obtained at the following address: Prince George's County Office of Personnel, 1400 McCormick Drive, Room 110, Largo, Maryland 20774.

Membership in the plan consisted of the following based on the July 1, 2018 valuation data rolled forward to June 30, 2019:

6,869

4,006

Active

Retired

Total Participants 10,875

(b) Funding Policy

The County negotiates the contribution percentages between the County and the plan members through union contracts and personnel policy. A non-public safety and public safety retiree pays the same percentage of the premium contribution for the HMOs (20%), POS/PPO (25%), and dental (100%) plans. Non-public safety retirees pay 10% to 100% of the premium cost for each of the prescription and vision plans; whereas, the public safety retirees pay 1% to 10% of the premium contribution for each of the same two plans. The public safety group bargained these premium contributions for the retirees of this group during prior bargaining negotiations. The premium contribution share outlined above applies to a retiree who qualifies for retirement under their specified pension plan and is enrolled in the plans at the time of retirement. The County contribution is based on projected pay-as-you- go financing requirements with an additional amount to prefund benefits as approved in the annual budget. The County contributed $44.5 million, during fiscal year 2019 for current employer premiums (approximately 74% of total premium contributions). Plan members contributed $15 million (approximately 24% of total premium contributions) to the OPEB Plan.

(c) Other Postemployment Benefit (OPEB) Expense, Liability and Deferred Outflows/Inflows of Resources

The net OPEB liability was measured as of June 30, 2019 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2018 rolled forward to June 30,2019. The County’s proportionate share of the net OPEB liability was based on a projection of the County’s long-term share of contributions to the OPEB plan relative the projected contribution of all participating agencies. The County’s proportionate share was $1,685,014,000 or 98%.

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Prince George's County, Maryland Notes Financial Statements

2,019

Total OPEB liability

Service cost 55,586

Interest 65,283

Changes of benefit terms -

Differences between expected and actual (73,370)

Changes of assumptions 95,854

Benefit payments (59,129)

Net change in total OPEB liability 84,224

Total OPEB liability - beginning 1,660,593

Total OPEB liability - ending (a) $ 1,744,817

Plan fiduciary net position

Contributions - employer $ 47,448

Contributions - employee 14,487

Net investment income 4,409

Benefit payments (59,129)

Administrative expense 1,301

Net change in plan fiduciary net position 5,914

Total fiduciary net position - beginning 53,889

Total fiduciary net position - ending (b) $ 59,803

County's net OPEB liability - ending (a) - (b) $ 1,685,014

OPEB plan liability was allocated as follows:

County 1,685,014,000$

Housing 11,308,000$

Library 28,730,000$

1,725,052,000$

OPEB Liability

June 30, 2019

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Deferred Outflows

of Resources

Deferred Inflows

of Resources

Differences between expected and actual experience 119,943 168,124

Changes of assumptions 86,182 99,448

Net difference between projected and actual earnings on OPEB plan investments 277

Total 206,125 267,849

75

Prince George's County, Maryland Notes Financial Statements

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year Ending June 30 Amount

2020 (8,090)$

2021 (8,090)

2022 (8,090)

2023 (8,227)

2024 (8,055)

Thereafter (21,172)

(61,724)$

(d) Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefits costs between employers and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The actuarial assumptions used in the latest valuation are as follows:

Actuarial Assumptions and Methods

Valuation Date July 1, 2018

Measurement Date June 30, 2019

Actuarial Cost Method Entry Age Normal

Discount Rate 3.50%

20 Yr. Municipal Bond Rate 3.50%

Municipal Bond Rate Basis Bond Buyers General Obligation 20-Year Municipal Bond Index

Expected Return on Assets 6.50%

Salary Increases 1.00% - 6.50%, depending on service

General Inflation 3.00%

Mortality

Pre-retirement Healthy and Disabled

RP-2014 Mortality Table fully generational projected using scale MP-2018

Disabled mortality is assumed to be RP-2014 Disable Mortality Table, projected using scale MP-2018

Health care cost trend rates:

Medical/Prescription PRE-65 (initial, ultimate)

Medical 6.6%, 4.5%

Rx 9.2%, 4.5%

Composite 7.1%, 4.5%

7.1%, 4.5%

Medical/Prescription 65+

Medical 5.8%, 4.5%

Rx 10.1%, 4.5%

Composite 8.5%, 4.5%

76

Prince George's County, Maryland Notes Financial Statements

Actuarial valuations of the OPEB Plan involve estimates of the value of reported amounts and assumptions about the probability of future events. Actuarially determined amounts are subject to revisions as actual results are compared to past expectations and new estimates are made about the future.

The schedules of funding progress, presented as required supplementary information following the notes to the financial statements, present multiyear trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

The net OPEB liability was calculated using a discount rate of 3.50%. The following presents the plan’s net OPEB liability calculated using a discount rate that is 1-percent-point lower or 1-percentage-point higher. The Health care rate shows what the net OPEB liability would be if health care trend rates were applied at 1-percent-point lower or 1-percentage-point higher than the current healthcare trend rates.

1% Decrease 2.50% Current Rate 3.50% 1% Increase 4.50%

Net OPEB Liability 2,155,422$ 1,725,052$ 1,406,251$

1% Decrease 3.50% Current Rate 4.50% 1% Increase 5.50%

Net OPEB Liability 1,395,542$ 1,725,052$ 2,175,708$

Sensitivity of Net OPEB Liability to Changes in the Discount Rate Assumption

Sensitivity of Net OPEB Liability to Changes in the Healthcare Cost Trend Rates

(f) Component Units

The Housing Authority and the Memorial Library participate in the County’s retiree life and health insurance benefit plan. Fiscal year 2019 employer contributions to the Plan by the Housing Authority and the Memorial Library were $63,000 and $388,626, respectively. The Board of Education and the Community College operate separate retiree benefit plans. The Board of Education paid employer contribution of $104.3 million and recognized a Net OPEB Liability of $2.09 billion in fiscal year 2019. The Community College contributed $5.2 million in employer contribution with an Net OPEB Liability of $80.9 million. Separate financial statements prepared for the Board of Education, Housing Authority, Memorial Library, and Community College, are available to the general public [see note 1(a)] and reflect detailed information relevant to their OPEB plans.

(g) Other Benefits - LOSAP

General Pension Information: Pension Plans Plan description: The Prince George’s County Length of Service Award Program (LOSAP) is a single-employer defined benefit retirement plan administered by Prince George’s County, Maryland. The LOSAP was established and operates under the provisions of Prince George’s County, MD Code Sec. 11-328. It was established in 1974 and last amended under CB-22-2014 effective July 1, 2014. Separate financial statements for the program are not issued.

Benefits provided: Under the LOSAP, participants become vested after 25 years of certified active service beginning at age 55. A volunteer at age 55 with less than 25 years’ active service, who is disabled in the line of duty based on Workers Compensation determination (see Section 2.1.4) will receive benefits equal to the benefits of a qualified volunteer at age 55 and with 25 years of service. A death benefit equal to 50% of the volunteer’s benefit is paid to the designated beneficiary. In addition, $5,000 is paid to the designated beneficiary for burial expenses. Participants aged 55 years with 25 years of eligibility service are entitled to a normal retirement benefit. Effective January 1,1991, and thereafter volunteers and spouses receiving benefits under this Act shall receive a cost of living (COLA) increase. The monthly amount representing 1% of the current starting salary of a trainee cannot exceed $770.25 based on limitations presented in the County Code. All benefits are paid from the Fire and Rescue Reserve Fund as they become due. This is an unfunded program; therefore, there are no assets in the program.

77

Prince George's County, Maryland Notes Financial Statements

Employees covered by benefit terms: At June 30, 2018, the following employees were covered by the benefit terms:

Inactive plan members or beneficiaries

currently receiving benefits 605

Inactive plan members entitled to but not

yet receiving benefits 128

Active plan members 1,443

2,176

Net Pension Liability - LOSAP

The County’s net pension liability of $124,627,715 was determined by an actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using the following actuarial assumptions, applied to all periods included in the measurement:

Mortality

Notes Benefits are scheduled to increase from $375 per month to $400 per month to $450 per month from fiscal year 2017 to 2019 to 2019 for

volunteers with 25 years oaf LOSAP service. Effective November 14, 2017, an additional death benefit of $15,000 is payable upon death of

any member. Effective March 13, 2018, the surviviing spouse will receive 50% of their deceased spouse's benefit or a minimum of $260,

whichever is greater. These additional changes have been reflected in the total pension liability measures as of June 30, 2019.

June 30, 2018

Entry Age Normal

3.62% for the measurement date as of June 30, 2018 / 3.13% as of June 30, 2019

Measurement Date

Actuarial Valuation Date

Actuarial Cost Method

Discount Rate

June 30, 2019

100 percent of the members are assumed to commence benefits at the earliest eligibility of:Retirement Age

RP-2014 Health Annuitant Mortality Table, with 0.75 multiplier for male and 1.1 multiplier for female, sex-distinct for healthy annuitant. RP-

2014 Healthy Annuitant Morality Table, with no multiplier for male and 1.35 multiplier for female , sex-distinct for annuitant disabled mortality

assumption.

1. Age 55 with 25 years of LOSAP service

2. Age 70 with 10 years of LOSAP service

These mortality assumptions have an estimated margin of 10 percent for future mortality improvements based on the most recent experience

study performed for the Prince Georges County Fire Service Pension Plan. Mortality rates for active members follow the applicable tables

above with a unisex mix of 65% male and 35% female.

Other information:

RP-2014 Blue Collar Employee Mortality Table, with 0.95 multiplier for male and 1.3 multiplier for female, sex-distinct for pre-retirement

nonservice connected mortality. RP-2014 Blue Collar Employee Morality Table, with 0.10 multiplier for male and 0.13 multiplier for female ,

sex-distinct for pre-retirement service connected mortality.

78

Prince George's County, Maryland Notes Financial Statements

Discount Rate

The rate at the end of the year is the fixed-income municipal bonds rate with 20 years to maturity that include only federally tax-exempt municipal bonds as reported in Fidelity Index’s “20-Year Municipal GO AA Index” as of June 30, 2018 and June 30, 2019, which was 3.62% and 3.13% respectively. In describing this index, fidelity notes that the municipal curves are constructed using option-adjusted analytics of a diverse population of over 10,000 tax exempt securities.

Sensitivity of the Total Pension liability to a Singe Discount Rate

Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan’s net pension liability, calculated using single discount rate that is 1-percent-point lower or 1-percentage-point higher:

Current Single

Discount Rate 2.13% 4.13%

(SDR) Assumption 1% Decrease SDR 1% Increase

Total Pension Liability 3.13% $ 147,503,481 $ 124,627,715 $ 107,116,588

Changes in the Net Pension Liability

Total Pension

Liability

(A)

Balance as of June 30, 2018 126,862,534$

Service Cost 575,670

Interest 4,530,056

Benefit Changes 127,246

Difference between Expected and

Actual Experience (13,789,532)

Assumption Changes 10,374,071

Benefit Payments (4,052,330)

Balance as of June 30, 2019 124,627,715$

Pension plan fiduciary net position: There are no separately issued financial reports for the LOSAP.

For the year ended June 30, 2019, the County recognized LOSAP pension adjustment of $90,425. The County reported deferred inflows resources related to pensions from the following sources:

Deferred

Outflow of

Resources

Deferred

Inflow of

Resouces

Net

Outflow/Inflow

of Resources

Difference between expected and actual

experience $ 463,995 $ (9,313,574) $ (8,849,579)

Changes in assumptions 7,006,741 (1,210,398) 5,796,343

$ 7,470,736 $ (10,523,972) $ (3,053,236)

79

Prince George's County, Maryland Notes Financial Statements

Amounts reported as deferred inflows of resources related LOSAP will be recognized as LOSAP pension expense as follows:

Year Ended

June 30

Net Deferred Outflows

(Inflows) of Resources

2020 $ (1,857,119)

2021 (1,106,540)

2022 (89,577)

Total $ (3,053,236)

(11) Unavailable and Unearned Revenue

Unavailable revenue reported in the General and other Governmental Funds represents tax billings and other receivables not available at June 30, 2019 for funding of current operations. These amounts are reported as a deferred inflow of resources in the governmental funds. Unearned revenue in the Federal and State Aided Programs Fund represents the unexpended portion of funds received for various grants and unrealized revenue relating to notes receivable arising from the sale of property. The Enterprise Funds' unearned revenue represents billings or receipts for future services collected in advance. Unearned revenue in the Internal Service funds is a combination of premiums paid in advance for life and health benefits and accumulated premium contributions of component units in excess of related risk management expenses. Unearned revenue reported in the Government-wide statements represents billings and receivables collected in advance related to items such as property tax deferrals and grant programs. The following is a summary of governmental and internal service funds deferred and unearned revenue as of June 30, 2019:

Unavailable Unearned Total

General Fund

Income Taxes Receivable 80,500,406$ -$ 80,500,406$

Property Taxes Receivable 7,670,330 - 7,670,330

Notes Receivable 1,490,147 18,296,933 19,787,080

Subtotal 89,660,883 18,296,933 107,957,816

Federal and State Aided Programs

Grant Drawdowns in Excess of Expenditures -$ 109,398,114$ 109,398,114$

Internal Service Funds

Receipt of Revenue prior to Service Provided -$ 39,876$ 39,876$ 89,660,883$ 127,734,923$ 217,395,806$

12) Deferred Compensation Plans

The County offers its employees various Deferred Compensation Plans, which have been created in accordance with Internal Revenue Code Section 457. The plans permit employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or an unforeseen emergency. All assets and income deferred by County plan participants are held in trust for the exclusive benefit of the participants and their beneficiaries and are not reflected in the accompanying financial statements.

80

Prince George's County, Maryland Notes Financial Statements

(13) Long-term Liabilities

(a) Outstanding Long-term Liabilities

The following is a summary of all primary government outstanding long-term liabilities as of June 30, 2019:

Amounts Due

Within One Year

Amounts Due in

More Than One

Year

Amounts Due

Within One Year

Amounts Due in

More Than One

Year

Amounts Due Within

One Year

Amounts Due in

More Than One

Year Total

Bonds payable

General obligation bonds 120,719,687$ 1,782,679,686$ 15,190,313$ 321,305,314$ 135,910,000$ 2,103,985,000$ 2,239,895,000$

Bond premium - 208,776,114 - 6,660,556 - 215,436,670 215,436,670

Total bonds payable 120,719,687$ 1,991,455,800$ 15,190,313$ 327,965,870$ 135,910,000$ 2,319,421,670$ 2,455,331,670$

Notes payable 9,135,000 256,203,480 1,271,252 5,454,008 10,406,252 261,657,488 272,063,740

Capital lease obligations 18,002,447 92,199,145 - - 18,002,447 92,199,145 110,201,592

Estimated liabilities on pending claims 39,128,332 132,370,551 - - 39,128,332 132,370,551 171,498,883

50,841,473 29,357,061 2,159,052 90,225 53,000,525 29,447,286 82,447,811

Net pension liability - 1,515,228,541 - 21,450,997 - 1,536,679,538 1,536,679,538

Net OPEB liability - 1,635,984,899 - 49,029,101 - 1,685,014,000 1,685,014,000

Net pension liability - LOSAP - 124,627,715 - - - 124,627,715 124,627,715

Landfill closure / postclosure - - 1,387,946 92,193,834 1,387,946 92,193,834 93,581,780

Other long-term liabilities 117,107,252 3,785,971,392 4,818,250 168,218,165 121,925,502 3,954,189,557 4,076,115,059

Total long-term liabilities 237,826,939$ 5,777,427,192$ 20,008,563$ 496,184,035$ 257,835,502$ 6,273,611,227$ 6,531,446,729$

Governmental Activities Business-type Activities Total

Compensated absences and

termination benefits payable

81

Prince George's County, Maryland Notes Financial Statements

(b) Bonded Debt Transactions

The following is a summary of bonded debt transactions of the primary government for the fiscal year ended June 30, 2019:

7/1/2018 Additions Reductions 6/30/2019

Governmental Activities

General obligation bonds 1,746,683,304$ 263,775,000$ (107,058,931)$ 1,903,399,373$

Bond premium 178,698,404 66,013,720 (35,936,010) 208,776,114

Business Type Activities

Solid Waste

General obligation bonds 45,999,335 - (2,431,653) 43,567,682

Bond premium 1,214,459 - (327,384) 887,075

Stormwater

General obligation bonds 236,702,361 65,375,000 (9,149,416) 292,927,945

Bond premium 6,994,076 530,391 (1,750,986) 5,773,481

Total bonded debt 2,216,291,939$ 395,694,111$ (156,654,380)$ 2,455,331,670$

The following is a summary of bonded debt transactions of the component for the fiscal year ended June 30, 2019:

Component Units

General obligation bonds 62,260,000$ $ - $ (4,020,000) 58,240,000$

Bond premium (discount) 1,844,955 - 26,970 1,871,925

Total bonded debt 64,104,955$ $ - $ (3,993,030) 60,111,925$

(c) Debt Service Requirements

The annual requirements to amortize all bonded debt outstanding as of June 30, 2019 are as follows:

Component Units Total

Principal Interest Principal Interest Principal Interest Total Principal Interest

2020 $ 120,719,687 74,665,848 2,842,963 1,764,833 12,347,350 11,122,533 223,463,214 2,425,000 2,605,740 228,493,954

2021 132,919,705 72,715,919 2,848,742 1,630,971 14,541,552 11,384,753 236,041,642 2,565,000 2,520,746 241,127,388

2022 137,901,156 66,271,120 2,919,339 1,495,435 14,919,505 10,672,788 234,179,343 2,710,000 2,419,041 239,308,384

2023 141,483,111 59,642,294 2,915,205 1,358,868 15,146,683 9,955,205 230,501,367 2,845,000 2,310,615 235,656,982

2024 135,018,469 53,350,308 3,055,039 1,223,045 15,646,492 9,242,771 217,536,123 2,845,000 2,193,198 222,574,321

2025 - 2029 685,274,708 175,791,548 13,650,756 4,252,101 78,624,538 35,773,487 993,367,138 18,260,000 8,851,462 1,020,478,600

2030 - 2034 407,023,537 58,946,950 10,194,638 1,736,444 79,546,825 18,366,628 575,815,023 12,150,000 4,756,397 592,721,420

2035 - 2039 139,444,000 9,292,836 5,141,000 343,608 57,440,000 5,354,425 217,015,869 14,440,000 1,456,750 232,912,619

2040 - 2044 3,615,000 54,225 - - 4,715,000 70,725 8,454,950 - - 8,454,950

$ 1,903,399,373 570,731,048 43,567,682 13,805,305 292,927,945 111,943,315 2,936,374,668 58,240,000 27,113,949 3,021,728,617

Primary Government

Year ended June 30,

Business-type Activities

Solid Waste Stormwater Management

Governmental Activities

82

Prince George's County, Maryland Notes Financial Statements

(d) Bonded Debt Details

Details of the County's long-term bonded debt at June 30, 2019 are as follows:

Governmental Activities

Solid Waste

Stormwater

Management Total

Component

Units Total

Bonded debt at July 1, 2018 $ 1,746,683,304 $ 45,999,335 $ 236,702,361 $ 2,029,385,000 $ 62,260,000 $ 2,091,645,000

Debt issued 263,775,000 - 65,375,000 329,150,000 - 329,150,000

Debt retired (107,058,931) (2,431,653) (9,149,416) (118,640,000) (4,020,000) (122,660,000)

Bonded debt (including current portion)

As of June 30, 2019 1,903,399,373 43,567,682 292,927,945 2,239,895,000 58,240,000 2,298,135,000

Less current portion (120,719,687) (2,842,963) (12,347,350) (135,910,000) (2,425,000) (138,335,000)

Noncurrent portion as of of June 30, 2019 $ 1,782,679,686 $ 40,724,719 $ 280,580,595 $ 2,103,985,000 $ 55,815,000 $ 2,159,800,000

Primary Government

Business-type Activities

Interest Calendar Year Amount Amount

Primary Government: Rates Maturity Dates Issued Outstanding

Governmental Activities:

General obligation bonds:

1.615 - 5.00% 2039 2,936,816,304$ 1,903,399,373$

2008, 2009A, 2009B CPI; 2009A TQSC, 2009B TESC; 2010A/B; 2011

TQSC, 2011A/11B, 2013A/B/C, 2014A, 2016A/B, 2017A/B, 2018A, 2019A

83

Prince George's County, Maryland Notes Financial Statements

Interest Calendar Year Amount Amount

Business-type Activities: Rates Maturity Dates Issued Outstanding

2.25 - 5.00% 2039 352,677,361$ 292,927,945$

2.25 - 5.00% 2038 119,654,335$ 43,567,682$

Total business-type activities long-term bonded debt 472,331,696$ 336,495,627$

Total primary government long-term bonded debt 3,409,148,000$ 2,239,895,000$

Component Units:

Revenue bonds:

Revenue Authority -

2016 Special Obligation Bonds 4.375 - 5.00% 2038 28,000,000$ 28,000,000$

Series 2018A/B Lease Revenue Refunding Bonds 3.98 - 5.00% 2030 33,755,000$ 29,830,000$

Housing Authority -

Capital Fund Securitization Revenue Bonds 2.0 - 4.55% 2023 1,465,000$ 410,000$

Industrial Development Authority -

2003A refunding lease revenue 2.0 - 5.125% 2019 27,430,000 -

2003B subordinated lease revenue 3.5 - 4.75% 2030 22,085,000 -

2009 taxable lease revenue bonds 0.64 - 6.169% 2030 23,850,000 -

Total Component Units revenue bonds 136,585,000$ 58,240,000$

Total long-term bonded debt 3,545,733,000$ 2,298,135,000$

2010A/B, 2011A/B, 2013A/B/C, 2014A, 2016B, 2017A/B, 2018A, 2019A

stormwater management - general obligation

2009A and 2009B, 2010A/B, 2011A/B, 2013A/B/C, 2014A, 2016A/B, 2017A/B,

2018A solid waste management system - general obligation

(e) Bond Additions

On May 14, 2019, the Primary Government issued $329,150,000 of General Obligation Consolidated Public Improvement Bonds, Series 2019A dated May 22, 2019, maturing on July 15 of the years 2020 through 2039 to provide funds for planning, construction, reconstruction, extension, enlargement, demolition, improvement or acquisition of certain capital projects. Of the total $329,150,000 bonds issued, $65,375,000 (for Stormwater) is reported as business-type activities and the remainder as governmental activities.

(f) Bond Authorizations

The County Charter requires that any borrowing to finance capital projects must be authorized by an enabling act of the General Assembly of Maryland or by an enabling act of the County Council. The County Council is required by the Charter to submit to voter referendum any act enabling the County to borrow money to finance capital projects, except for school construction bonds. In addition, the County Council is required by the Charter to adopt a bond authorization act before bonds may be issued.

84

Prince George's County, Maryland Notes Financial Statements

The amount of bonds enabled and authorized but not yet issued at June 30, 2019 is summarized as follows:

Enabled Amount

Authorized and

Unissued amount

Enabled by authority of the State of Maryland:

Health 33,000,000$ 33,952,000

Roads, parking and mass transit 1,173,685,000 191,757,000

Public buildings 821,070,765 187,010,000

Public Safety 690,966,000 158,730,000

2,718,721,765$ 571,449,000

The legal debt limit and margin at June 30, 2019 were $6,364,540,425 and $4,864,477,090 respectively. The County was in compliance with all significant bond covenants at June 30, 2019.

(g) Prior Period Defeasance of Debt

In prior periods, the County defeased or participated in the defeasance of certain long-term bonded debt. The proceeds of new bonds were placed in an irrevocable trust to provide for future debt service payments on the old debt. Accordingly, the trust account assets and the liability for the defeased debt are not included in the County's financial statements. A general description of the defeased debt and the amounts outstanding at June 30, 2019 are as follow:

• On June 21, 2007, the Primary Government issued $80,735,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2007B, dated June 1, 2007 to (a) currently refund $1,600,000 of certain maturities of the County’s Unlimited Tax General Obligation Stormwater Management Bonds, Series 1997B and b) advance refund certain portions of the County’s (i) Consolidated Public Improvement Bonds, Series 1998, (ii) Consolidated Public Improvement Bonds, Series 1999, (iii) Consolidated Public Improvement Bonds, Series 2000, (iv) Consolidated Public Improvement Bonds, Series 2001, and (v) Consolidated Public Improvement Bonds, Series 2003A. Of the $80,070,000 advance refunded bonds, $7,960,000 are bonds of the Stormwater Enterprise Fund, $2,710,000 are bonds of the Solid Waste Enterprise Fund and the remaining $69,400,000 refunded bonds relate to governmental activities. At June 30, 2019, $53,710,000 of the refunded bonds outstanding that mature in the years 2020 through 2024 are considered defeased.

• On September 15, 2011, the Primary Government issued $182,375,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2011B, dated September 27, 2011 to advance refund $201,895,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 2001, dated November 28, 2001, (ii) General Obligation Consolidated Public Improvement Bonds, Series 2002, dated September 15, 2002, (iii) General Obligation Consolidated Public Improvement Bonds, Series 2003A, dated June 15, 2003, and (iv) General Obligation Consolidated Public Improvement Bonds, Series 2004, dated June 15, 2004. Of the $201,895,000 advance refunded bonds, $7,440,000 ($4,570,000 for Stormwater and $2,870,000 for Solid Waste) is reported as business-type activities. The remaining $194,455,000 Refunded Bonds relate to governmental activities. At June 30, 2019, $77,815,000 of the refunded bonds outstanding that mature in the years 2020 through 2025 are considered defeased.

• On February 20, 2013, the Primary Government issued $200,390,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2013B, dated February 5, 2013 to advance refund $190,055,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 2005, dated Jul 1, 2005, (ii) General Obligation Consolidated Public Improvement Bonds, Series 2006, dated May 15, 2006, and (iii) General Obligation Consolidated Public Improvement Bonds, Series 2007 A, dated June 1, 2007. Of the $190,055,000 advance refunded bonds, $8,865,000 ($6,765,000 for Stormwater and $2,100,000 for Solid Waste) is reported as business-type activities. The remaining $181,190,000 Refunded Bonds relate to governmental activities. At June 30, 2019, $144,535,000 of the refunded bonds outstanding that mature in the years 2020 through 2028 are considered defeased.

85

Prince George's County, Maryland Notes Financial Statements

• On June 07, 2016, the Primary Government issued $58,350,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2016B, dated June 22, 2016 to advance refund $66,155,000 of certain maturities of the County’s General Obligation Consolidated Public Improvement Bonds, Series 2008, dated June 1, 2008. Of the $66,155,000 advance refunded bonds, $7,730,000 ($5,470,000 for Stormwater and $2,260,000 for Solid Waste) is reported as business-type activities. The remaining $58,425,000 Refunded Bonds relate to governmental activities. At June 30, 2019, $66,155,000 of the refunded bonds outstanding that mature in the years 2020 through 2029 are considered defeased.

• On August 29, 2017, the Primary Government issued $104,965,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2017B, dated September 12, 2017 to advance refund $115,165,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 2007B, dated June 1, 2007 and (ii) General Obligation Consolidated Public Improvement Bonds, Series 2011A, dated September 15, 2011. Of the $115,165,000 advance refunded bonds, $23,530,000 ($2,755,000 for Solid Waste and $20,775,000 for Stormwater) is reported as business-type activities. The remaining $91,635,000 Refunded Bonds relate to governmental activities. At June 30,2019, $105,760,000 of the refunded bonds outstanding that mature in the years 2020 through 2032 are considered defeased.

(14) Conduit Debt Transactions

The County encourages private industry to locate and remain in the County by, among other things, the issuance of tax-exempt Economic Development Revenue Bonds, which bear the County's name and benefit the private enterprise. The funds provided from the sale of such debt are used for the public interest, such as for hospital construction or expansion of private businesses to increase employment and the County's tax base. These bonds do not constitute indebtedness or a charge against the general credit or taxing power of the County. The bond indentures explicitly state the absence of any legal obligation by the County to repay the indebtedness. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.

As of June 30, 2019, there were one hundred and seventy-four series of Economic Development Revenue Bonds outstanding. The aggregate principal amount, for the ten series issued after July 1, 1995 that remain outstanding, is $131.7 million. The aggregate principal amount payable on June 30, 2019 for the one hundred and sixty-eight series issued prior to July 1, 1995, could not be determined; however, their original issue amounts totaled approximately $1.1 billion.

86

Prince George's County, Maryland Notes Financial Statements

(15) Special Taxing Districts

The County has issued various special taxing district bonds pursuant to Section 10-279 of the Prince George’s County Code and Section 9-1301 of Article 24 of the Annotated Code of Maryland. Neither the full faith and credit nor the taxing power of the County is pledged for the payment of these bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Details of the outstanding debt as of June 30, 2019 are as follow.

Bond Project Issuance Date Amount Issued

Amount

Outstanding

Final

Maturity

Prince George's County, Maryland Taxable Subordinate

Special Obligation Bonds, Series 2005

National Harbor Convention

Center Project - Gaylord 05/11/2005 95,000,000$ 75,280,000$ 07/01/2033

Prince George's County, Maryland Special Tax District

Bonds, Series 2005 Victoria Falls Project 09/08/2005 12,000,000 10,551,000 07/01/2035

Prince George's County, Maryland Special Obligation

Bonds, Series 2005

National Harbor Project -

Peterson 09/21/2005 65,000,000 52,400,000 07/01/2034

Prince George's County, Maryland Special Obligation

Bonds, Series 1997A

Woodview Village

Improvements Projects 10/25/2006 7,450,000 3,820,000 07/01/2026

Prince George's County, Maryland Special Obligation

Refunding Bonds, Series 2006

Woodview Village Phase II

Infrastructure Improvements 11/20/2006 8,205,000 5,565,000 07/01/2032

Prince George's County, Maryland Taxable Subordinate

Special Obligation Bonds, Series 2008

National Harbor Convention

Center Project - Gaylord 04/02/2008 50,000,000 50,000,000 09/01/2037

Prince George's County, Maryland Special Obligation

Bonds, Series 2009

National Harbor Project -

Peterson 01/27/2009 35,000,000 34,357,000 01/01/2039

Prince George's County Woodmore Towne Centre at

Glenarden SOB Developer Note, Series 2012 Woodmore Town Center 01/18/2012 17,000,000 13,099,165 01/01/2032

Prince George's County Brandywine Shopping Center

Phase II SOB Developer Notes, Series 2014A Brandywine Shopping Center 05/06/2014 2,220,000 1,835,934 01/01/2043

Prince George's County Brandywine Shopping Center

Phase II SOB Developer Notes, Series 2014B Brandywine Shopping Center 05/06/2014 2,280,000 1,885,554 01/01/2043

Prince George's County Town Center at Camp Springs

SOB Developer Note, Series 2014A Camp Springs Town Center 06/30/2014 4,900,000 4,420,916 01/01/2043

Prince George's County, Maryland Special Obligation

Developer Note, Series 2015 Calvert Tract Project 09/17/2015 3,000,000 2,908,000 01/01/2035

Prince George's County Town Center at Camp Springs

(Allure Apollo Project) SOB Developer Note, Series

2018 (Taxable)

Camp Springs Town Center

(Allure Apollo Project) 04/24/2018 6,200,000 6,200,000 04/01/2048

Prince George's County, MD Special Obligation Bonds

(Westphalia Town Center Project), 2018 Series

Westphalia Town Center

Project 11/29/2018 39,755,000 39,755,000 07/01/2048

Prince George's County, MD Special Obligation Bonds

(South Lake Project), 2019 Series South Lake Project 05/30/2019 33,000,000 11,515,000 (1) 07/01/2048

Prince George's County, MD Senior Special Obligation

Bonds (Hampton Park Project), 2019 Series Hampton Park Project 06/06/2019 11,100,000 11,100,000 07/01/2048

Prince George's County, MD Subordinate Special

Obligation Bonds (Hampton Park Project,) 2019 Series Hampton Park Project 06/06/2019 3,115,000 3,115,000 07/01/2048

395,225,000$ 327,807,570$

(1) Periodic construction draws will increase outstanding bonds to $33 million maximum

87

Prince George's County, Maryland Notes Financial Statements

(16) Other Long-term and Short-term Debt

The following represents the changes in other long-term liabilities for governmental activities:

Balance Balance

July 1, 2018 Additions Reductions June 30, 2019

Net Pension Liability 1,337,127,199$ $ 190,807,233 $ 12,705,891 1,515,228,541$

Net OPEB Liability 1,557,734,899 78,250,000 - 1,635,984,899

Net Pension Liability - LOSAP 126,862,534 4,142,774 6,377,593 124,627,715

Compensated absences and termination benefits payable 76,387,276 54,652,731 50,841,473 80,198,534

Estimated liabilities on pending claims and judgements 159,391,876 125,307,411 113,200,404 171,498,883

Capital lease obligations 89,897,776 39,684,027 19,380,211 110,201,592

Notes payable:

Purchase agreements and certificates of participation 150,070,000 120,520,000 7,395,000 263,195,000

University of Maryland, College Park 1,418,480 - - 1,418,480

Commercial Building Loan Fund 2,027,000 - 1,302,000 725,000

Total notes payable 153,515,480 120,520,000 8,697,000 265,338,480

3,500,917,040$ $ 613,364,176 $ 211,202,572 3,903,078,644$

The following represents the changes in other long-term liabilities for business-type activities:

Balance Balance

July 1, 2018 Additions Reductions June 30, 2019

Compensated absences and termination benefits payable 2,215,633$ $ 2,192,696 $ 2,159,052 2,249,277$

Landfill closure / postclosure costs 92,836,134 745,646 - 93,581,780

Net Pension Liability 19,779,558 2,739,155 1,067,716 21,450,997

Net OPEB Liability 48,969,101 165,000 105,000 49,029,101

Notes payable:

Purchase agreements and certificates of participation 5,947,866 1,815,798 1,038,404 6,725,260

Total notes payable 5,947,866 1,815,798 1,038,404 6,725,260

120,779,191$ $ 7,493,295 $ 4,265,172 $ 124,007,314$

Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for internal service funds are included as part of the above for governmental activities. At year-end, $1,432,652 ($1,332,580 within one year, and $100,072 due in more than one year) of internal service fund compensated absences are included in the above amounts. For the remainder of compensated absences, the General Fund normally liquidates over 90 percent and the remainder is liquidated by the Federal and State Aided Programs Special Revenue Fund. Also, for governmental activities net pension obligations, net other post-employment benefit obligations, and capital lease obligations are generally liquidated by the General Fund.

Estimated liability on pending claims and judgments is reported in risk management internal service funds and will be liquidated by those funds. Notes payables are generally liquated by the General Fund with the exception of the Commercial Building Loan Fund which is liquidated by the Federal and State Aided Programs Special Revenue Fund.

88

Prince George's County, Maryland Notes Financial Statements

89

Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements

The County maintains capital leasing agreements with Banc of America Public Finance, Old Line Bank, Signature Public Funding and Grant Capital. The lease agreements financed the acquisition of essential equipment for public safety, including emergency vehicles, ambulances and fire trucks. The agreements mature between 2019 and 2026. The County has issued certificates of participation (COPs) to fund the acquisition of essential equipment for public safety. The COPs have maturities between 2018 and 2030. The County has issued COPs in support of regional health facilities and the County’s Revenue Authority. The COPs have maturities between 2018 and 2048. The County has provided a debt service reserve fund (DSRF) make-up provision for the $27.2 million Lease Revenue Refunding Bonds (Metrorail Parking Projects) Series 2014 for the Maryland Transportation Authority. The County has pledged to replenish any DSRF draws in the subsequent fiscal year. Primary security is parking garage revenues which have always been sufficient to pay debt service, and the $2.5 million DSRF has never required replenishment. Due to the steady rise in insurance premiums for the Volunteer Fire Workers’ Compensation, Risk Management recognized the need to change the program from a fully insured based program to a claims paid and administered program. The new Vol. Fire WC program established a bank Letter of Credit (LOC) of $6 million. There is no balance on the LOC.

a) Capital Lease Obligations

The County entered into agreements with Grant Capital Management, Banc of America Public Capital Corporation, and Old Line Bank to finance the purchase of Fire/EMS ambulances and other Public Safety vehicles in June 2014; Public Safety and other County agency vehicles and equipment in June 2015; Fire equipment Self Contained Breathing Apparatus (SCBA) in April 2016; Public Safety and other County agency vehicles in December 2016; Public Safety and other County agency vehicles in June 2017; Public Safety vehicles and other County agency equipment in December 2017; Public Safety and other County agency vehicles and equipment in August 2018; Public Safety and other County agency vehicles and equipment in December 2018; and Public Safety and other County agency vehicles and equipment in June 2019.

These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. In June 2019, the County entered into a lease agreement for $15,982,452 of this amount $0 was spent as of June 30, 2019.

The assets acquired through capital leases are as follows: Governmental

Activities

Asset:

Equipment 87,235,102$ Less: Accumulated depreciation (51,521,445)

Total 35,713,657$

Prince George's County, Maryland Notes Financial Statements

The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2019, were as follows:

Governmental

Year ending June 30 Activities

2020 20,852,206$

2021 20,038,541

2022 18,002,553

2023 18,010,238

2024 14,924,999

2025-2029 28,598,451

2030-2034 3,434,559

Total minimum lease payments 123,861,547

Less: amount representing interest (13,659,955)

Present value of minimum lease payments 110,201,592$

b) Pension Liability and OPEB Liability

The Net Pension Liability represents the difference between the actuarially determined total pension liability and plan fiduciary net position and Net OPEB liability represents the difference between the actuarially required and the actual employer contributions. The balance as of June 30, 2019 for the Pension and OPEB liabilities was $1,536,679,538 (see note 9 – Pension Plans) and $1,685,014,000 (see note 10 – Postemployment Benefits Other Than Pensions), respectively.

c) Compensated Absences and Termination Benefits

County employees are granted vacation and sick leave in varying amounts. In the event of termination, an employee is reimbursed for accumulated vacation in full, and for sick leave in varying amounts based on years of service. Participants in the plans administered by the State Retirement and Pension System of Maryland may apply accrued sick leave as service credits toward retirement. An employee separated or dismissed from County employment is entitled to payment for any accrued, unused annual leave as authorized by the appropriate salary schedule or collective bargaining agreement.

Vested or accumulated vacation and sick leave that relates to employees who terminated employment with the County on or before June 30, 2019 are reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation and sick leave that do not meet the above criteria are not reported in the governmental funds.

For purposes of reporting in the County’s government-wide financial statements and the proprietary fund financial statements, vested or accumulated vacation and sick leave are recognized as an expense and liability as the benefits accrue to employees. Current amounts are such amounts expected to be paid within one year.

The liability includes an accrual at the current rate for ancillary salary-related payments (i.e., employer’s share of Social Security and Medicare taxes) associated with its ultimate liquidation.

90

Prince George's County, Maryland Notes Financial Statements

The following is a summary of compensated absences and termination benefits payable at June 30, 2019 (in thousands):

Governmental

Activities

Solid Waste

Stormwater

Management

Watershed

Protection

and

Restoration Total Total

Component

Units

Primary Government $ 80,198 $ 876 $ 1,297 $ 76 $ 2,249 $ 82,447 $ -

Component Units:

Board of Education - - - - - - 66,185

Housing Authority - - - - - - 470

Memorial Library - - - - - - 1,867

Community College - - - - - - 3,168

Community Television - - - - -

80,198 876 1,297 76 2,249 82,447 71,690

Less current portion 50,841 867 1,216 76 2,159 53,000 1,566

Total long-term portion $ 29,357 $ 9 $ 81 $ - $ 90 $ 29,447 $ 70,124

Primary Government

Business-type Activities

d) Notes Payable

(i) Purchase Agreement and Certificates of Participation Notes Payable

The County has entered into certain financing/purchasing agreements for the purpose of acquiring real estate, equipment, textbooks, vehicles, and school buses. Under these agreements, the financing amounts are deposited with a fiscal escrow agent who will pay the vendors as the County takes delivery of the assets. The County makes periodic loan repayments directly to the lender over a specified period of time.

The interest rates on all financing/purchasing agreements in force range from 2.0% to 5.0%. The liability for the debt is carried as notes payable in various funds as listed below.

91

Prince George's County, Maryland Notes Financial Statements

Following is a schedule by year of future principal and interest payments as of June 30, 2019 (in thousands):

Principal Interest Principal Interest Total

$ 9,005 10,734 1,271 132 21,142

9,895 10,521 1,337 106 21,859

10,490 10,052 1,364 79 21,985

10,580 9,565 1,391 52 21,588

10,005 9,075 925 24 20,029

39,810 39,487 437 11 79,745

39,910 30,974 - - 70,884

45,080 22,675 - - 67,755

2040-2044 42,280 14,232 - - 56,512

2045-2049 46,140 4,716 - - 50,856

Total note payments $ 263,195 162,031 6,725 404 432,355

Primary Government

2020

2021

Governmental Activities Business-type Activities

Solid Waste

Year ending

June 30,

2030- 2034

2035-2039

2025- 2029

2024

2022

2023

(ii) Other General Long-Term Debt Notes Payable

The Primary Government entered into an agreement with The State of Maryland for the Use of the University System of Maryland on behalf of Its Constituent Institution, The University of Maryland, College Park, to convey to Prince George’s County, Maryland Property and, in addition, a Utility Relocation Easement in exchange for equal value in the form of certain public works projects to be performed by the County or, alternatively, deferred cash payment by the County. Consummation of the conveyance of the Property occurred on November 16, 2016. The parties agreed that the fair market value of the Property and the Easements is $1,418,480. At any time before the fifth anniversary of the date of Closing, the County may satisfy its payment obligation by identifying, funding, and completing one or more public works and engineering projects that are mutually agreed upon, in writing, by the University, the University System of Maryland, the Maryland Board of Public Works and the County. The cost at completion of the projects will not be less than the FMV plus interest at an annual rate of 2%, compounded annually, on each anniversary of the date of closing. If the County fails to identify, fully fund and commence construction of mutually agreeable projects at a cost at least equal to the FMV by the fifth anniversary of the date of closing, the County shall pay the FMV plus accrued interest to the University. At June 30, 2019, $1,418,480 was outstanding.

The Primary Government entered into an agreement with HUD to administer a $10,000,000 Section 108 Commercial Building Loan Fund. The first project financed under the loan fund was a $2,000,000 loan paid to a private partnership for land acquisition. The first principal payment of $165,000 was paid August 1, 2002. The loan was paid in full on August 1, 2011. The second project financed under the loan fund was a $2,600,000 loan paid to a developer for the construction of a restaurant. The first principal payment of $25,000 was paid on August 1, 2004. The loan was paid in full on February 14, 2019. The third project financed under this loan was a $1,900,000 loan paid to a developer for land acquisition and the construction of rental housing units. The first principal payment of $70,000 was paid on August 1, 2006. The developer is responsible for servicing the loan balance that matures August 1, 2023, at rates ranging from 2.31% to 5.97%. At June 30, 2019, $725,000 remains outstanding. The fourth project financed under this loan was a $1,837,000 loan paid to a sign manufacturing company for building acquisition and construction renovations to relocate the company. The first principal payment of $46,000 was paid on August 1, 2006. The loan was paid in full on February 1, 2017.

92

Prince George's County, Maryland Notes Financial Statements

Following is a schedule by year of future principal and interest payments as of June 30, 2019 (in thousands):

Principal Interest Total

$ 130 39 169

130 31 161

145 23 168

155 14 169

165 5 170

- - -

* Total note payments $ 725 112 837

* Does not include a note for 1,418,000. Does not have an amortization table.

2025- 2029

CBLF

2021

2022

2023

2024

Year ending

2020

Primary Government - Governmental Activities

(17) Fund Balance Policy and Reporting

The County has not adopted a minimum fund balance policy for its governmental funds. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are needed, except for capital projects which use unrestricted resources first. Furthermore, within the unrestricted fund balance the County will apply expenditures against committed, then assigned, and then unassigned amounts.

Stabilization Arrangement - Per voter referendum and Council Bills (CB-81-1992 & CB-6-2003) the County is required to maintain a Charter Mandated contingency reserve equal to 5% of the annual budget. Funds can only be used to meet a public emergency, which constitutes a sudden, unexpected or unforeseen condition or occurrence, creating an imminent hazard to life, health or property and requiring an immediate action, the Council may, by resolution and upon the recommendation of the County Executive, make emergency appropriations from contingent reserve. Withdrawals may be used only for appropriations which have become unfunded. The balance in the stabilization fund is disclosed in the table below.

93

Prince George's County, Maryland Notes Financial Statements

A schedule of fund balance classifications at June 30, 2019 follows:

Total General Fund Federal and State Aided Programs

Capital Projects Fund Non-Major Funds

Restricted Fund Balances Restricted for contingencies:

Economic Stabiliztion 172,149,835$ 172,149,835$ -$ -$ -$ General Government 22,483,829 - - 22,483,829 - Public safety 84,503,585 - - 84,503,585 - Health and human services 19,396,186 - - 19,396,186 -

Infrastructure and development 75,105,656 - - 75,105,656 - Educaton 128,669,289 - - 128,669,289 - Debt Service 59,272,502 - 254,174 - 59,018,328

Retricted for other purposes Domestic Violence 280,089 - - - 280,089 Drug Enforcement and Education 3,158,434 - - - 3,158,434 Unspent Proceeds from debt issuances:

Equipment purchases 36,326,106 36,326,106 - - - Total restricted fund balances 601,345,511$ 208,475,941 254,174$ 330,158,545$ 62,456,851$

Total General Fund Federal and State Aided Programs

Capital Projects Fund Non-Major Funds

Nonspendable: Inventory 2,810,871$ 2,810,871$ -$ -$ -$

Committed Fund Balance Operating Reserve 68,859,934$ 68,859,934 -$ -$ -$ Infrastructure and development - - - - - Environmental 2,814,357 - - 2,814,357 -

Total committed fund balances 71,674,291$ 68,859,934 -$ 2,814,357$ -$

Assigned Fund Balance Economic Development 33,503,806$ 33,503,806$ -$ -$ -$ Property Sales and Acquisitions 6,698,108 6,698,108 - - - Drug Enforcement and Education 3,687,527 - - - 3,687,527 Other 24,226,679 24,226,679

Total assigned fund balances 68,116,120$ 64,428,593 -$ -$ 3,687,527$

Unassigned: 235,564,370$ 235,564,370$ -$ -$ -$

Total fund balance 979,511,163$ 580,139,709$ 254,174$ 332,972,902$ 66,144,378$

Primary Government

(18) Encumbrances

Certain governmental funds use encumbrance accounting for budgetary purposes. Encumbrances represent claims against appropriations for purchase order and executed contracts that have not been expended. All outstanding encumbrances were closed as of the end of fiscal year 2019.

94

Prince George's County, Maryland Notes Financial Statements

95

(19) Tax Abatements

A tax abatement as defined by GASB 77 is a reduction in tax revenues that results from an agreement between one or more governments and an individual or entity through which the government promises to forgo tax revenues to which they are otherwise entitled, and the individual or entity promises to take a specific action after the agreement has been entered into that contributes to economic development or otherwise benefit the government or its citizens. As of June 30, 2019, the County provides tax abatements through the following programs:

The Enterprise Zone program provides real property tax credits for businesses located in a Maryland enterprise zone in return for job creation and investments. State and local incentives and assistance are offered to encourage the expansion of existing businesses and the attraction of new business activity and jobs in economically distressed areas. See MD Annotated Code –Section 9-103.

Enterprise Zone Tax Abatement Program Amount of Taxes Abated: Real Property - $1,508,690 Personal Property - $42,425 Payment in Lieu of Taxes (PILOT) program. State law provides, among other things, that real property may be exempt from county property tax under certain conditions: (1) the property is located in a designated focus area; (2) the owner of the real property agrees to maintain the real property as rental housing for lower income persons; (3) the project is an economic development project; (4) the property is an electricity generation facility; and (5) the owner enters into an agreement with the governing body of the county to pay a negotiated amount in lieu of the applicable county property tax. See MD Annotated Code –Section 7-211.3; 7-505; 7-506.1; 7-514; 7-516.

Payment in Lieu of Taxes Tax Abatement Program Amount of Taxes Abated: $1,953,748 Admissions and Amusement Tax-This tax is collected by the State of Maryland and paid to the County quarterly. In 2009, the County passed CR-87-2009 which gave certain incentives for events in Prince George’s County in the form of a reduction in the amount of the County admissions and amusement tax levy on the events subject to certain conditions.

This was offered as an incentive for events to be held at FedEx field. An admissions and amusement tax waiver in the amount of 50% to 80% of the admission and amusement tax may be exercised upon the gross receipts derived from the amount charged for admission on the event.

Admissions and Amusement Tax Abatement Program Amount of Taxes Abated: $2,103,879 The County has other various tax credit incentives that are not defined as tax abatements under generally accepted accounting principles and therefore are not described and included here.

(20) Summary Disclosure of Significant Contingencies

(a) Litigation

In addition to those suits in which claims for liability are adequately covered by insurance, the County is involved in numerous lawsuits with a potential liability ranging up to $1.0 million. In the opinion of legal counsel and management, it is reasonably possible that some of these cases will be settled against the County, resulting in varying degrees of monetary damages.

(b) Contingent Liabilities

(i) Questioned Costs

The County participates in a number of Federally-assisted grant programs. These programs are currently under examination in accordance with Uniform Grant Guidance. The final results of this examination for fiscal year 2019 have not yet been determined. The amount of expenditures which may be disallowed by the granting agencies cannot be specifically determined at this time. The County expects any disallowed costs to be immaterial, as has been the case in previous audits.

(ii) Brown Station Road Landfill

The Primary Government owns and operates the Brown Station Road Landfill, which is accounted for in the Solid Waste Enterprise Fund. Phase I of the landfill was closed in September 1993 after 25 years of operation. Phase II of the landfill began operations on May 13, 1992 and approximately 85.1% of total estimated capacity has been utilized as of June 30, 2019. It is expected to operate through the year 2025.

Prince George's County, Maryland Notes Financial Statements

To close both Phase I and Phase II of the landfill, State and Federal laws and regulations require the County to place a final cover on both landfill phases. (The closure and post- closure plan for both phases is pending final State approval.) These laws also require the County to perform certain maintenance and monitoring functions at the landfill site. In accordance with statutory requirements, the Primary Government estimates closure costs only for Phase I, of approximately $15.8 million ($14.2 million of which has been liquidated), and closure and 30-year post-closure costs for Phase II of $70.2 million. Estimated costs are "as if incurred" in fiscal year 2019 and may change due to inflation, technological enhancements, and revisions to State and Federal requirements - as well as any additional measures that may be undertaken to safeguard the quality of life for residents. These estimates are updated annually.

At June 30, 2019, the Primary Government has recorded an accumulated total liability for closure and post-closure costs of $60 million for Phases I and II based on the percentage of capacity of Phases I and II utilized to date multiplied by the total capacity of Phases I and II. As of June 30, 2019, the Primary Government's Solid Waste Enterprise Fund shows restricted assets of $98,105,060 for landfill closure costs for Brown Station Road Landfill as well as Sandy Hill Landfill.

(iii) Sandy Hill Landfill

On July 1, 1992, the Primary Government entered into a three-part agreement with The Maryland-National Capital Park and Planning Commission (M-NCPPC), a joint venture, to operate the Sandy Hill Landfill. The daily operations and responsibility to develop and to maintain the “Existing Landfill” through closure and one year of post-closure of this refuse disposal facility had been contracted to Waste Management, Inc., for the period May 1977 to March 2007. Since 2007, post-closure activities have been the responsibility of the County.

As part of the 1992 Agreement, the County received $1,890,485 from M-NCPPC when responsibility for the landfill was assigned to the County. The funds are held in a Trust Fund for post-closure construction phase and maintenance of the Landfill and its environmental control facilities including monitoring.

In May 1997, the County was granted a permit by the Maryland Department of the Environment (MDE) to vertically expand the operation. The Landfill stopped accepting waste in June 2000 and was certified closed by the State effective August 6, 2012.

As with the Brown Station Road Landfill, State and Federal laws and regulations require a final landfill cover and 30 years of post-closure activities. The Primary Government has recorded an estimated liability for 30 years of post-closure costs of $32 million because this landfill is substantially full. Estimated costs for post-closure activities, are “as if incurred,” and will be updated annually for changes in technology, applicable regulations and inflation.

(c) Operating Leases

Under the terms of various operating lease agreements for facilities, the Primary Government's approximate future minimum annual rental payments for facilities are as follows (in thousands):

Year ending

June 30

2020 7,946$

2021 8,185

2022 8,430

2023 8,683

2024-2028 46,099

2029-2033 53,442

2034-2038 61,955

194,740$

During fiscal year 2019, rent expense under these lease agreements amounted to approximately $12.9 million.

96

Prince George's County, Maryland Notes Financial Statements

(21) Joint Ventures

The County participates in the financial activities of certain entities providing services within the County, which are deemed joint venture activities. The joint ventures described in the following paragraphs are not reflected in the accompanying financial statements because the County has no equity interest in the operations of these entities.

(a) Washington Suburban Transit Commission (WSTC)

The WSTC is a State of Maryland bi-county agency, which receives funds from Montgomery and Prince George's Counties, both of which participate in the Washington Metropolitan Area Transit Authority (WMATA), to construct and maintain a cohesive and uniform transportation system. WSTC is composed of seven members; two from each county, two members appointed by the Governor of Maryland, and one ex officio representative from the Maryland Department of Transportation. WSTC acts as a coordinator for transit-related information and provides a forum for the discussion, formulation and transmittal of Federal, state and local funds paid to WMATA on behalf of the Maryland region. The annual operating costs of WSTC are shared equally by Montgomery and Prince George’s Counties. The Primary Government’s share of these costs for fiscal year 2019 amounted to $122,053.

(b) The Maryland-National Capital Park and Planning Commission (M-NCPPC)

M-NCPPC is a bi-county agency servicing Montgomery and Prince George's Counties’ regional system of parks. It also conducts the recreation program for Prince George's County. The Commission consists of ten members - five from each County. The County can modify its share of the budget and also approves applicable fees and sets the recreational tax rate. The

County must also approve any debt issuances and is obligated to honor any bonded debt deficiencies (which to date have not occurred). At June 30, 2019, the Primary Government was contingently liable as guarantor on bonds issued by M-NCPPC in the amount of $111,030,000.

(c) Washington Metropolitan Area Transit Authority (WMATA)

On January 9, 1970, the County entered into an agreement with other local jurisdictions for construction of the Washington Metropolitan Area Rapid Transit System. Since then, the County has entered into several additional agreements providing for financing of both construction and operations. The County's obligation for funding the construction of the rail transit facilities is borne by the State of Maryland. WMATA is governed by a board of six directors and six alternates, who are appointed on a pro rata basis by the Northern Virginia Transportation Commission, the City Council of the Government of the District of Columbia, and the WSTC (mentioned above).

In 2016, the State contributed $4.9 million toward the payment of principal and interest on WMATA revenue bonds. This was provided pursuant to amended Chapter 530, Acts of Maryland General Assembly 1980, which provides for State payment of 100% of the debt service bond repayment costs.

(d) Washington Suburban Sanitary Commission (WSSC)

The WSSC is a bi-county political subdivision of the State of Maryland created to provide water supply and sewage disposal facilities for Montgomery and Prince George's Counties. WSSC's governing body is composed of six members, three from each county; the budgeting authority and financing responsibility is shared equally by the participating counties.

97

Prince George's County, Maryland Notes Financial Statements

98

(e) Availability of Financial Statements

Complete separate financial statements may be obtained at the administrative offices of the individual joint ventures as follows:

Washington Suburban Transit Commission 8720 Georgia Avenue, Suite 904 Silver Spring, Maryland 20910

The Maryland-National Capital Park and Planning Commission 6611 Kenilworth Avenue Riverdale, Maryland 20737

Washington Metropolitan Area Transit Authority 600 Fifth Street, N.W. Washington, D.C. 20001

Washington Suburban Sanitary Commission 14501 Sweitzer Lane Laurel, Maryland 2979

(22) Jointly Governed Organization

The Metropolitan Washington Council of Governments (COG) provides resources to participating local governments within the Washington, D.C. metropolitan area for a regional approach to local urban problems, emphasizing regional planning, community and economic development and conservation. Under COG’s bylaws, contributions of participating local governments are calculated on a per capita basis. The twenty-four board members are elected by the local jurisdiction which they represent; two members are appointed by the Primary Government. The Primary Government's fiscal year 2019 contributions to COG amounted to approximately $590,264.

REQUIRED SUPPLEMENTARY INFORMATION

Fiscal year ending June 30 2019 2018

Total OPEB liability Service cost 55,586$ 59,743$ Interest 65,283 60,597 Changes of benefit terms - - Differences between expected and actual experience (73,370) 22,282 Changes of assumptions 95,854 (124,593) Benefit payments (59,129) (57,567) Net change in total OPEB liability 84,224 (39,538) Total OPEB liability - beginning 1,660,593 1,700,131 Total OPEB liability - ending (a) 1,744,817$ 1,660,593$

Plan fiduciary net position Contributions - employer 47,448.00$ 44,448.00$ Contributions - employee 14,487 13,899 Net investment income 4,409 2,656 Benefit payments (59,129) (57,567) Administrative expense (1,301) (1,250) Net change in plan fiduciary net position 5,914 2,186 Total fiduciary net position - beginning 53,889 51,703 Total fiduciary net position - ending (b) 59,803$ 53,889$

County's net OPEB liability - ending (a) - (b) 1,685,014$ 1,606,704$

(1) GASB 74 implemented in Fiscal Year 2017. Ultimately 10 years will be displayed. (2) GASB74 was effective first for employer fiscal year beginning after June 15, 2017.

Schedule of Changes in the Net OPEB Liability and Related Ratios Fiscal Year 2017 through 2019

Prince Georges County Maryland Post-Employment Other than Pensions Plan (OPEB)

Required Supplementary Information

99

Fiscal year ending June 30 2019 2018 2017 2016 2015 2014

Total Pension Liability

Service cost 33,802,800$ 33,082,200$ 32,364,400$ 32,875,100$ 32,427,700$ 38,339,800$

Interest 118,517,846 115,877,515 112,147,767 108,826,271 104,196,812 97,116,878

Difference between expected and actual experience 9,989,342 (18,545,350) (4,552,241) (10,608,284) 7,177,558 -

Assumption changes 55,919,576 - - - - 40,734,204

Benefit payments (92,598,549) (87,719,094) (83,930,734) (82,938,604) (79,160,257) (76,560,744)

Refunds (5,878,321) (5,034,971) (4,557,046) (1,753,711) (823,760) (1,272,420)

Net change in total pension liability 119,752,694 37,660,300 51,472,146 46,400,772 63,818,053 98,357,718

Total pension liability - beginning 1,611,990,389 1,574,330,089 1,522,857,943 1,476,457,171 1,412,639,118 1,314,281,400 Total pension liability - ending (a) 1,731,743,083$ 1,611,990,389$ 1,574,330,089$ 1,522,857,943$ 1,476,457,171$ 1,412,639,118$

Plan fiduciary net position

Employer contributions 66,547,832$ 65,648,402$ 61,636,821$ 58,726,423$ 65,705,413$ 66,113,037$

Employee contributions 10,459,889 8,988,620 8,835,456 8,415,273 8,710,935 8,190,741

Net investment income 55,257,208 133,597,622 76,628,221 (19,270,258) 31,033,375 120,575,139

Benefit payments (92,598,549) (87,719,094) (83,930,734) (82,938,604) (79,160,257) (76,560,744)

Refunds (5,878,321) (5,034,971) (4,557,046) (1,753,711) (823,760) (1,272,420)

Administrative expense (724,567) (623,566) (545,459) (628,194) (585,034) (517,840)

Net transfers - - (169,993) - - -

Net change in plan fiduciary net position 33,063,492 114,857,013 57,897,266 (37,449,071) 24,880,672 116,527,913

Plan fiduciary net position - beginning 1,016,767,737 901,910,724 844,013,458 881,462,529 856,581,857 740,053,944 Plan fiduciary net position - end (b) 1,049,831,229$ 1,016,767,737$ 901,910,724$ 844,013,458$ 881,462,529$ 856,581,857$

Net Pension Asset - (a) - (b) 681,911,854$ 595,222,652$ 672,419,365$ 678,844,485$ 594,994,642$ 556,057,261$

Plan fiduciary net position as a percentage of total pension liability 60.62% 63.08% 57.29% 55.42% 59.70% 60.64% Covered payroll (2) 131,981,800$ 128,434,100$ 125,230,400$ 127,185,700$ 123,481,300$ 121,886,100$

Net pension liability as a percentage of covered payroll 516.67% 463.45% 536.95% 533.74% 481.85% 456.21%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019

Prince Georges County Maryland

Police Pension Plan

Required Supplementary Information

100

Fiscal year ending June 30 2016 2015 2014

Total Pension Liability

Service cost 21,588,000$ 19,808,900$ 18,947,200$ 18,580,700$ 18,272,700$ 17,384,400$

Interest 62,945,402 60,517,930 59,295,587 56,434,441 53,654,660 49,506,707

Benefit changes 14,248,639 (20,583) - - - -

Difference between expected and actual experience (2,286,847) 1,536,296 (12,785,431) 10,729,376 10,759,866 -

Assumption changes 24,746,718 - - - - 31,788,934

Benefit payments (48,494,159) (48,024,267) (46,448,040) (46,067,060) (43,816,726) (41,916,128)

Refunds (2,075,719) (2,113,111) (2,599,305) (482,418) (1,210,716) (719,912)

Net change in total pension liability 70,672,034 31,705,165 16,410,011 39,195,039 37,659,784 56,044,001

Total pension liability - beginning 853,501,000 821,795,835 805,385,824 766,190,785 728,531,001 672,487,000 Total pension liability - ending (a) 924,173,034$ 853,501,000$ 821,795,835$ 805,385,824$ 766,190,785$ 728,531,001$

Plan fiduciary net position

Employer contributions 46,681,453$ 42,487,727$ 39,887,570$ 38,078,291$ 37,391,396$ 34,826,767$

Employee contributions 6,088,635 5,140,356 4,682,622 4,303,868 4,159,906 3,835,790

Net investment income 25,955,544 60,100,382 36,065,184 (7,803,168) 12,392,319 56,155,443

Benefit payments (48,494,159) (48,024,267) (46,448,040) (46,067,060) (43,816,726) (41,916,128)

Refunds (2,075,719) (2,113,111) (2,599,305) (482,418) (1,210,716) (719,912)

Administrative expense (678,495) (481,437) (428,428) (479,212) (456,462) (413,936)

Net transfers - - - - - -

Net change in plan fiduciary net position 27,477,259 57,109,650 31,159,603 (12,449,699) 8,459,717 51,768,024

Plan fiduciary net position - beginning 473,591,005 416,481,355 385,321,752 397,771,451 389,311,734 337,543,710 Plan fiduciary net position - end (b) 501,068,264$ 473,591,005$ 416,481,355$ 385,321,752$ 397,771,451$ 389,311,734$

Net Pension Asset - (a) - (b) 423,104,770$ 379,909,995$ 405,314,480$ 420,064,072$ 368,419,334$ 339,219,267$ Plan fiduciary net position as a percentage of total pension liability 54.22% 55.49% 50.68% 47.84% 51.92% 53.44% Covered payroll (2) 72,009,100$ 65,580,700$ 62,427,600$ 60,992,900$ 59,216,400$ 58,003,300$ Net pension liability as a percentage of covered payroll 587.57% 579.30% 649.26% 688.71% 622.16% 584.83%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Fire Service Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

101

201720182019

2016 2015 2014

5,178,100$ 4,793,000$ 4,384,500$ 4,359,000$ 4,085,500$ 3,871,100$

10,269,220 9,832,823 9,357,745 8,922,118 8,333,756 7,628,903

763,215 (1,533,330) (375,209) (372,277) 2,253,312 -

11,683,921 - - - - 4,557,828

(7,497,665) (7,187,220) (7,045,429) (6,954,174) (6,730,533) (6,582,813)

(150,885) (96,694) (138,885) (90,039) (152,216) (68,733)

20,245,906 5,808,579 6,182,722 5,864,628 7,789,819 9,406,285

138,135,833 132,327,254 126,144,532 120,279,904 112,490,085 103,083,800 158,381,739$ 138,135,833$ 132,327,254$ 126,144,532$ 120,279,904$ 112,490,085$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 7,716,382$ 8,042,355$ 6,841,157$ 6,780,148$ 6,613,913$ 5,853,975$

Employee contributions 2,057,673 1,953,989 1,696,697 1,580,443 1,562,200 1,405,110

Net investment income 4,376,272 9,052,471 4,627,591 (432,595) 1,894,023 8,305,560

Benefit payments (7,497,665) (7,187,220) (7,045,429) (6,954,174) (6,730,533) (6,582,813)

Refunds (150,885) (96,694) (138,885) (90,039) (152,216) (68,733)

Administrative expense (216,512) (172,591) (211,728) (280,425) (220,964) (211,737)

Net transfers - - 279,252 - - -

Net change in plan fiduciary net position 6,285,265 11,592,310 6,048,655 603,358 2,966,423 8,701,362

Plan fiduciary net position - beginning 78,562,726 66,970,416 60,921,761 60,318,403 57,351,980 48,650,618 Plan fiduciary net position - end (b) 84,847,991$ 78,562,726$ 66,970,416$ 60,921,761$ 60,318,403$ 57,351,980$

Net Pension Asset - (a) - (b) 73,533,748$ 59,573,107$ 65,356,838$ 65,222,771$ 59,961,501$ 55,138,105$ Plan fiduciary net position as a percentage of total pension liability 53.57% 56.87% 50.61% 48.30% 50.15% 50.98% Covered payroll (2) 18,864,200$ 17,414,000$ 15,839,200$ 15,679,200$ 15,222,500$ 14,251,600$ Net pension liability as a percentage of covered payroll 389.81% 342.10% 412.63% 415.98% 393.90% 386.89%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Deputy Sheriff's Comprehensive Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

102

201720182019

2016 2015 2014

7,341,700$ 7,130,600$ 7,041,300$ 7,200,400$ 6,809,700$ 6,838,600$

17,923,093 17,444,975 16,849,899 15,560,139 14,532,414 12,993,205

(2,289,656) (5,849,797) (4,787,673) 4,780,950 1,847,358 -

10,203,842 - - - - 9,933,562

(12,179,263) (10,986,348) (9,854,847) (9,305,786) (8,724,601) (8,354,218)

(838,945) (924,489) (685,157) (697,058) (640,680) (742,136)

20,160,771 6,814,941 8,563,522 17,538,645 13,824,191 20,669,013

241,761,512 234,946,571 226,383,049 208,844,404 195,020,213 174,351,200 261,922,283$ 241,761,512$ 234,946,571$ 226,383,049$ 208,844,404$ 195,020,213$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 10,207,504$ 9,794,685$ 9,263,190$ 9,525,885$ 9,198,374$ 7,363,022$

Employee contributions 3,772,277 3,522,944 3,416,254 3,416,276 3,282,970 3,054,222

Net investment income 7,817,483 16,738,031 8,625,807 (795,879) 3,510,171 15,128,737

Benefit payments (12,179,263) (10,986,348) (9,854,847) (9,305,786) (8,724,601) (8,354,218)

Refunds (838,945) (924,489) (685,157) (697,058) (640,680) (742,136)

Administrative expense (286,679) (275,040) (264,234) (219,077) (175,666) (240,480)

Net transfers - - (109,259) - - -

Net change in plan fiduciary net position 8,492,377 17,869,783 10,391,754 1,924,361 6,450,568 16,209,147

Plan fiduciary net position - beginning 141,400,741 123,530,958 113,139,204 111,214,843 104,764,275 88,555,128 Plan fiduciary net position - end (b) 149,893,118$ 141,400,741$ 123,530,958$ 113,139,204$ 111,214,843$ 104,764,275$

Net Pension Asset - (a) - (b) 112,029,165$ 100,360,771$ 111,415,613$ 113,243,845$ 97,629,561$ 90,255,938$ Plan fiduciary net position as a percentage of total pension liability 57.23% 58.49% 52.58% 49.98% 53.25% 53.72% Covered payroll (2) 28,644,600$ 27,679,600$ 27,281,900$ 27,898,000$ 27,085,400$ 25,445,200$ Net pension liability as a percentage of covered payroll 391.10% 362.58% 408.39% 405.92% 360.45% 354.71%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Correctional Officers' Comprehensive Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

103

201720182019

2016 2015 2014

18,100$ 26,800$ 31,900$ 40,300$ 39,600$ 45,400$

661,914 667,599 677,418 694,511 695,358 658,384

557,758 96,614 (19,004) (152,939) 87,731 -

19,881 - - - - 615,240

(807,419) (794,211) (735,685) (790,199) (819,027) (805,234)

(63,172) (60,573) (48,281) (36,363) (22,784) -

387,062 (63,771) (93,652) (244,690) (19,122) 513,790

9,244,055 9,307,826 9,401,478 9,646,168 9,665,290 9,151,500 9,631,117$ 9,244,055$ 9,307,826$ 9,401,478$ 9,646,168$ 9,665,290$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 849,800$ 819,100$ 809,300$ 846,400$ 815,900$ 768,500$

Employee contributions 13,333 16,571 23,845 26,337 30,157 29,030

Net investment income 253,540 559,081 296,564 (17,544) 131,609 521,224

Benefit payments (807,419) (794,211) (735,685) (790,199) (819,027) (805,234)

Refunds (63,172) (60,573) (48,281) (36,363) (22,784) -

Administrative expense (50,454) (38,378) (34,008) (31,822) (31,774) (27,614)

Net transfers - - - - - -

Net change in plan fiduciary net position 195,628 501,590 311,735 (3,191) 104,081 485,906

Plan fiduciary net position - beginning 4,677,709 4,176,119 3,864,384 3,867,575 3,763,494 3,277,588 Plan fiduciary net position - end (b) 4,873,337$ 4,677,709$ 4,176,119$ 3,864,384$ 3,867,575$ 3,763,494$

Net Pension Asset - (a) - (b) 4,757,780$ 4,566,346$ 5,131,707$ 5,537,094$ 5,778,593$ 5,901,796$ Plan fiduciary net position as a percentage of total pension liability 50.60% 50.60% 44.87% 41.10% 40.09% 38.94% Covered payroll (2) 259,300$ 379,100$ 493,500$ 600,800$ 583,300$ 574,600$ Net pension liability as a percentage of covered payroll 1834.86% 1204.52% 1039.86% 921.62% 990.67% 1027.11%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Deputy Sheriff's Supplemental Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

104

201720182019

2016 2015 2014

71,200$ 92,500$ 114,300$ 136,800$ 128,100$ 140,000$

720,918 751,291 752,543 682,481 651,696 581,835

427,624 (626,611) (336,423) 573,596 17,577 -

(292,284) - - - - 557,170

(622,531) (568,473) (463,704) (398,513) (369,988) (309,055)

(16,691) (16,691) (25,673) (8,936) (5,512) -

288,236 (367,984) 41,043 985,428 421,873 969,950

9,891,110 10,259,094 10,218,051 9,232,623 8,810,750 7,840,800 10,179,346$ 9,891,110$ 10,259,094$ 10,218,051$ 9,232,623$ 8,810,750$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 369,383 406,628 517,388 620,834 675,703 559,655

Employee contributions 49,800 54,413 70,755 83,472 90,308 84,396

Net investment income 552,348 1,233,779 651,124 (32,724) 281,057 1,045,836

Benefit payments (622,531) (568,473) (463,704) (398,512) (369,988) (309,055)

Refunds (16,691) (16,691) (25,673) (8,936) (5,512) -

Administrative expense (47,395) (35,202) (34,548) (31,822) (31,774) (27,614)

Net transfers - - - - - -

Net change in plan fiduciary net position 284,914 1,074,454 715,342 232,312 639,794 1,353,218

Plan fiduciary net position - beginning 10,094,254 9,019,800 8,304,458 8,072,146 7,432,352 6,079,134 Plan fiduciary net position - end (b) 10,379,168$ 10,094,254$ 9,019,800$ 8,304,458$ 8,072,146$ 7,432,352$

Net Pension Asset - (a) - (b) (199,822)$ (203,144)$ 1,239,294$ 1,913,593$ 1,160,477$ 1,378,398$ Plan fiduciary net position as a percentage of total pension liability 101.96% 102.05% 87.92% 81.27% 87.43% 84.36% Covered payroll (2) 1,113,200$ 1,113,200$ 1,387,800$ 1,669,100$ 1,620,500$ 1,519,300$ Net pension liability as a percentage of covered payroll -17.95% -18.25% 89.30% 114.65% 71.61% 90.73%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Correctional Officers' Supplemental Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

105

201720182019

2019 2018 2017 2016 2015 2014

64,000$ 64,900$ 54,600$ 60,700$ 60,100$ 66,300$

179,969 152,365 152,094 151,447 149,464 140,397

189,566 347,378 (27,662) (37,977) (15,625) -

234,460 - - - 81,491

(180,987) (196,741) (160,109) (145,303) (150,128) (144,342)

(14,544) (4,698) (15,063) (24,818) (9,611)

472,464 367,902 14,225 13,804 18,993 134,235

2,464,159 2,096,257 2,082,032 2,068,228 2,049,235 1,915,000 2,936,623$ 2,464,159$ 2,096,257$ 2,082,032$ 2,068,228$ 2,049,235$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 88,146 80,300 77,415 85,297 87,270 81,888

Employee contributions 69,299 63,199 60,826 66,985 68,869 64,330

Net investment income 90,433 207,326 109,888 (11,504) 89,869 222,555

Benefit payments (180,987) (196,741) (160,109) (145,303) (150,128) (144,342)

Refunds (14,544) - (4,698) (15,063) (24,818) (9,611)

Administrative expense (35,305) (20,123) (29,075) (29,501) (28,122) (21,310)

Net transfers - - - - - (220)

Net change in plan fiduciary net position 17,042 133,961 54,247 (49,089) 42,940 193,290

Plan fiduciary net position - beginning 1,680,553 1,546,592 1,492,345 1,541,434 1,498,494 1,305,204 Plan fiduciary net position - end (b) 1,697,595$ 1,680,553$ 1,546,592$ 1,492,345$ 1,541,434$ 1,498,494$

Net Pension Asset - (a) - (b) 1,239,028$ 783,606$ 549,665$ 589,687$ 526,794$ 550,741$ Plan fiduciary net position as a percentage of total pension liability 57.81% 68.20% 73.78% 71.68% 74.53% 73.12% Covered payroll (2) 1,502,000$ 1,570,300$ 1,326,600$ 1,460,700$ 1,418,200$ 1,402,400$ Net pension liability as a percentage of covered payroll 82.49% 49.90% 41.43% 40.37% 37.15% 39.27%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

Crossing Guards Pension Plan

Required Supplementary Information

106

2016 2015 2014

2,547,200$ 2,487,600$ 2,337,800$ 2,405,400$ 2,404,200$ 2,949,000$

7,821,203 7,574,972 7,387,324 7,166,483 6,865,340 6,434,666

813,744 (1,799,787) (2,470,329) (1,961,698) (864,476) -

(588,168) - - - - 755,549

(5,011,748) (4,664,882) (4,597,996) (4,339,973) (4,075,963) (3,860,360)

(157,915) (189,095) (201,760) (131,065) (236,734) (92,288)

5,424,316 3,408,808 2,455,039 3,139,147 4,092,367 6,186,567

105,570,228 102,161,420 99,706,381 96,567,234 92,474,867 86,288,300 110,994,544$ 105,570,228$ 102,161,420$ 99,706,381$ 96,567,234$ 92,474,867$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 3,319,479 3,097,126 3,034,645 3,248,913 4,203,607 3,924,252

Employee contributions 730,736 678,435 671,040 715,902 924,937 862,630

Net investment income 5,169,920 11,287,925 6,110,266 (583,438) 2,579,265 11,124,936

Benefit payments (5,011,748) (4,664,882) (4,597,996) (4,339,971) (4,075,963) (3,860,360)

Refunds (157,915) (189,095) (201,760) (131,065) (236,734) (92,288)

Administrative expense (136,940) (104,461) (101,249) (99,769) (96,546) (116,210)

Net transfers - - - - (51,363) (125,063)

Net change in plan fiduciary net position 3,913,532 10,105,048 4,914,946 (1,189,428) 3,247,203 11,717,897

Plan fiduciary net position - beginning 93,885,291 83,780,243 78,865,297 80,054,725 76,807,522 65,089,625 Plan fiduciary net position - end (b) 97,798,823$ 93,885,291$ 83,780,243$ 78,865,297$ 80,054,725$ 76,807,522$

Net Pension Asset - (a) - (b) 13,195,721$ 11,684,937$ 18,381,177$ 20,841,084$ 16,512,509$ 15,667,345$ Plan fiduciary net position as a percentage of total pension liability 88.11% 88.93% 82.01% 79.10% 82.90% 83.06% Covered payroll (2) 52,605,700$ 52,605,700$ 51,301,100$ 52,869,200$ 51,329,300$ 51,111,200$ Net pension liability as a percentage of covered payroll 25.08% 22.21% 35.83% 39.42% 32.17% 30.65%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

AFSCME Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

107

201720182019

2016 2015 2014

5,372,200$ 4,899,200$ 4,566,800$ 4,712,000$ 4,665,500$ 5,213,600$

15,104,775 14,009,676 13,676,412 13,234,761 12,468,033 11,683,071

(706,607) 7,701,766 (2,238,092) (650,926) 3,639,626 -

5,293,616 - - - - 3,805,637

(11,888,786) (11,103,416) (10,729,870) (10,377,212) (9,850,377) (9,661,847)

(824,139) (683,483) (935,030) (641,289) (292,878) (135,253)

12,351,059 14,823,743 4,340,220 6,277,334 10,629,904 10,905,208

205,001,009 190,177,266 185,837,046 179,559,712 168,929,808 158,024,600 217,352,068$ 205,001,009$ 190,177,266$ 185,837,046$ 179,559,712$ 168,929,808$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 8,172,803 7,144,886 6,432,619 6,607,768 7,757,860 7,189,526

Employee contributions 3,679,406 3,249,612 2,910,222 2,983,908 3,531,597 3,338,347

Net investment income 8,033,413 17,492,183 9,510,800 (913,560) 4,006,797 17,349,257

Benefit payments (11,888,786) (11,103,416) (10,729,870) (10,377,212) (9,850,377) (9,661,847)

Refunds (824,139) (683,483) (935,030) (641,289) (292,878) (135,253)

Administrative expense (152,094) (131,789) (122,954) (117,761) (115,975) (153,155)

Net transfers - - - - 21,670 152,316

Net change in plan fiduciary net position 7,020,603 15,967,993 7,065,787 (2,458,146) 5,058,694 18,079,191

Plan fiduciary net position - beginning 145,780,043 129,812,050 122,746,263 125,204,409 120,145,715 102,066,524 Plan fiduciary net position - end (b) 152,800,646$ 145,780,043$ 129,812,050$ 122,746,263$ 125,204,409$ 120,145,715$

Net Pension Asset - (a) - (b) 64,551,422$ 59,220,966$ 60,365,216$ 63,090,783$ 54,355,303$ 48,784,093$ Plan fiduciary net position as a percentage of total pension liability 70.30% 71.11% 68.26% 66.05% 69.73% 71.12% Covered payroll (2) 106,570,000$ 98,417,500$ 93,107,700$ 95,570,500$ 92,786,900$ 90,154,600$ Net pension liability as a percentage of covered payroll 60.57% 60.17% 64.83% 66.01% 58.58% 54.11%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

General Schedule Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

108

20172018 20162019

2016 2015 2014

200,800$ 194,600$ 187,000$ 187,400$ 180,400$ 218,900$

900,425 939,446 899,836 854,877 836,587 789,219

665,068 (860,507) 120,092 186,157 (154,697) -

68,620 - - - - 256,389

(809,553) (685,272) (628,337) (599,487) (572,118) (603,003)

(60,076) (41,406) (11,606) (18,593) (53,345) -

965,284 (453,139) 566,985 610,354 236,827 661,505

12,334,032 12,787,171 12,220,186 11,609,832 11,373,005 10,711,500 13,299,316$ 12,334,032$ 12,787,171$ 12,220,186$ 11,609,832$ 11,373,005$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 430,406 467,026 436,162 474,312 511,188 455,754

Employee contributions 167,255 181,882 169,640 181,788 198,816 177,317

Net investment income 460,792 1,030,499 544,896 (52,155) 232,048 1,014,503

Benefit payments (809,553) (685,272) (628,337) (599,487) (572,118) (603,003)

Refunds (60,076) (41,406) (11,606) (18,593) (53,345) -

Administrative expense (80,221) (62,079) (68,218) (67,687) (65,939) (57,930)

Net transfers - - - - - (4,197)

Net change in plan fiduciary net position 108,603 890,650 442,537 (81,822) 250,650 982,444

Plan fiduciary net position - beginning 8,494,479 7,603,829 7,161,292 7,243,114 6,992,464 6,010,020 Plan fiduciary net position - end (b) 8,603,082$ 8,494,479$ 7,603,829$ 7,161,292$ 7,243,114$ 6,992,464$

Net Pension Asset - (a) - (b) 4,696,234$ 3,839,553$ 5,183,342$ 5,058,894$ 4,366,718$ 4,380,541$ Plan fiduciary net position as a percentage of total pension liability 64.69% 68.87% 59.46% 58.60% 62.39% 61.48% Covered payroll (2) 4,014,000$ 3,930,800$ 4,005,800$ 3,987,900$ 3,871,700$ 3,638,800$ Net pension liability as a percentage of covered payroll 117.00% 97.68% 129.40% 126.86% 112.79% 120.38%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Fire Civilian Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

109

201720182019

2016 2015 2014

767,900$ 746,100$ 770,000$ 799,900$ 795,600$ 1,023,800$

2,298,811 2,195,303 2,118,233 2,034,463 1,938,410 1,908,551

659,622 392,980 34,381 51,023 212,896 -

4,091,983 - - - - (785,355)

(1,867,763) (1,656,985) (1,587,910) (1,474,674) (1,397,887) (1,395,958)

(78,199) (326,337) (198,885) (247,230) (218,740) (260,381)

5,872,354 1,351,061 1,135,819 1,163,482 1,330,279 490,657

31,229,198 29,878,137 28,742,318 27,578,836 26,248,557 25,757,900 37,101,552$ 31,229,198$ 29,878,137$ 28,742,318$ 27,578,836$ 26,248,557$

Fiscal year ending June 30

Total Pension Liability

Service cost

Interest

Difference between expected and actual experience

Assumption changes

Benefit payments

Refunds

Net change in total pension liability

Total pension liability - beginning

Total pension liability - ending (a)

Plan fiduciary net position

Employer contributions 935,069 810,064 746,382 845,730 1,089,407 1,068,827

Employee contributions 759,055 651,526 587,101 654,575 838,457 802,285

Net investment income 1,270,372 2,819,848 1,541,066 (148,154) 649,268 2,833,208

Benefit payments (1,867,763) (1,656,985) (1,587,910) (1,474,674) (1,397,887) (1,395,958)

Refunds (78,199) (326,337) (198,885) (247,230) (218,740) (260,381)

Administrative expense (83,667) (65,186) (72,477) (69,349) (67,533) (64,464)

Net transfers - - - - 29,693 (22,836)

Net change in plan fiduciary net position 934,867 2,232,930 1,015,277 (439,102) 922,665 2,960,681

Plan fiduciary net position - beginning 23,232,460 20,999,530 19,984,253 20,423,355 19,500,690 16,540,009 Plan fiduciary net position - end (b) 24,167,327$ 23,232,460$ 20,999,530$ 19,984,253$ 20,423,355$ 19,500,690$

Net Pension Asset - (a) - (b) 12,934,225$ 7,996,738$ 8,878,607$ 8,758,065$ 7,155,481$ 6,747,867$ Plan fiduciary net position as a percentage of total pension liability 65.14% 74.39% 70.28% 69.53% 74.05% 74.29% Covered payroll (2) 17,539,300$ 17,068,000$ 18,061,900$ 18,662,200$ 18,118,600$ 17,183,600$ Net pension liability as a percentage of covered payroll 73.74% 46.85% 49.16% 46.93% 39.49% 39.27%

(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.

Prince Georges County Maryland

Police Civilian Pension Plan

Required Supplementary Information

Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2019(1)

110

201720182019

Measurement Date 2018 2017 2016 2015 2014

County's proportionate share of net pension liability 0.6907262% 0.6194649% 0.6861117% 0.7289217% 0.6960475% County's proportionate share of net pension liability 144,925,413$ 133,951,230$ 161,881,386$ 151,482,409 123,525,669 County's covered payroll 208,197,734$ 199,388,943$ 198,403,627$ 195,770,350 196,774,400 County's proportionate share of the net pension liability as a percentage of its covered payroll 69.61% 67.18% 81.59% 77.38% 62.78% Plan fiduciary net position as a percentage of the total pension liability 68.78% 68.78% 68.78% 68.78% 71.87% (1) GASB68 implemented in Fiscal Year 2015. Ultimately 10 years will be displayed.

Actuarial Valuation Date July 1, 2018 July 1, 2017 July 1, 2016 Measurement Date June 30, 2019 June 30, 2018 June 30, 2017 Employer Fiscal Year Ending Date for GASB 73 June 30, 2019 June 30, 2018 June 30, 2017

Total Pension Liability

Service cost 575,670$ 489,440$ 539,067$

Interest 4,530,056 4,141,557 3,685,363 Benefit changes 127,246 7,985,757 - Difference between expected and actual experience (13,789,532) 1,290,640 - Assumption changes 10,374,071 (1,237,419) (13,460,974) Benefit payments (4,052,330) (3,768,494) (3,665,717) Refunds - - -

Net change in total pension liability (2,234,819) 8,901,481 (12,902,261)

Total pension liability - beginning 126,862,534 117,961,053 130,863,314 Total pension liability - ending (a) 124,627,715$ 126,862,534$ 117,961,053$ Covered payroll -$ -$ -$

Total pension liability as a percentage of covered payroll N/A N/A N/A

Prince Georges County Maryland

Maryland State Retirement and Pension System

Required Supplementary Information

Schedule of Proportionate Share of Net Pension Liability Fiscal Year 2014 through 2018(1)

There are no assets accumulated in a trust that meet the criteria in Paragraph 4 of Statement 73 to pay related benefits.

Prince Georges County Maryland

Length of Service Awards Program

Required Supplementary Information

Fiscal Year 2019(1) Schedule of Changes in Pension Liability

(1) GASB73 implemented in Fiscal Year 2017. Ultimately 10 years will be displayed. The change in Total Pension Liability due to the change in the Singe Discount rate from 3.56 percent as of the beginning of the year to 3.62 percent as of the end of the year is included as an assumption change.

111

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Police Actuarially determined contribution 66,547,832$ 65,648,402$ 61,636,821$ 58,726,423$ 65,705,413$ 66,113,037$ 56,265,491$ 52,792,772$ 47,358,991$ 40,746,884$

Contributions in relation to the actuarially

determined contribution 66,547,832 65,648,402 61,636,821 58,726,423 65,705,413 66,113,037 56,265,491 52,792,772 47,358,991 40,746,884

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 136,976,506$ 132,727,218$ 125,322,184$ 119,399,271$ 121,869,863$ 132,856,596$ 113,612,283$ 110,472,635$ 105,941,115$ 105,067,297$

Contributions as a percentage of covered payroll 48.58% 49.46% 49.18% 49.18% 53.91% 49.76% 49.52% 47.79% 44.70% 38.78%

Fire Actuarially determined contribution 46,681,453$ 42,487,727$ 39,887,570$ 38,078,591$ 37,391,396$ 34,826,767$ 29,993,835$ 31,141,432$ 25,956,943$ 23,247,348$

Contributions in relation to the actuarially

determined contribution 46,681,453 42,487,727 39,887,570 38,078,591 37,391,396 34,826,767 29,993,835 31,141,432 25,956,943 23,247,348

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 75,759,138$ 68,350,412$ 63,976,346$ 60,833,272$ 58,868,793$ 61,520,842$ 51,609,161$ 58,769,965$ 49,076,124$ 48,791,822$

Contributions as a percentage of covered payroll 61.62% 62.16% 62.35% 62.60% 63.52% 56.61% 58.12% 52.99% 52.89% 47.65%

Deputy Sheriff's Comprehensive Actuarially determined contribution 7,716,382$ 8,042,355$ 6,841,157$ 6,780,148$ 6,613,913$ 5,853,975$ 5,171,709$ 5,243,696$ 4,627,135$ 3,898,491$

Contributions in relation to the actuarially

determined contribution 7,716,382 8,042,355 6,841,157 6,780,148 6,613,913 5,853,975 5,171,709 5,243,696 4,627,135 3,898,491

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 17,616,414$ 18,114,070$ 15,470,323$ 15,130,115$ 14,760,637$ 14,819,114$ 13,408,926$ 13,689,694$ 13,180,174$ 13,060,220$

Contributions as a percentage of covered payroll 43.80% 44.40% 44.22% 44.81% 44.81% 39.50% 38.57% 38.30% 35.11% 29.85%

Correctional Officers' Comprehensive Actuarially determined contribution 10,207,504$ 9,794,685$ 9,263,190$ 9,525,885$ 9,198,374$ 7,363,022$ 6,361,469$ 6,655,547$ 6,196,486$ 5,082,212$

Contributions in relation to the actuarially

determined contribution 10,207,504 9,794,685 9,263,190 9,525,885 9,198,374 7,363,022 6,361,469 6,655,547 6,196,486 5,082,212

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 28,794,558$ 27,442,054$ 26,127,022$ 26,668,372$ 25,545,117$ 26,087,235$ 23,470,084$ 25,215,683$ 24,347,628$ 23,217,583$

Contributions as a percentage of covered payroll 35.45% 35.69% 35.45% 35.72% 36.01% 28.22% 27.10% 26.39% 25.45% 21.89%

Deputy Sheriff's Supplemental Actuarially determined contribution 849,800$ 819,100$ 809,300$ 846,400$ 815,900$ 768,500$ 652,200$ 274,717$ 257,053$ 255,608$

Contributions in relation to the actuarially

determined contribution 849,800 819,100 809,300 846,400 815,900 768,500 652,200 274,717 257,053 255,608

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 256,402$ 318,671$ 458,558$ 506,489$ 579,946$ 558,262$ 717,237$ 1,021,708$ 1,105,715$ 1,307,494$

Contributions as a percentage of covered payroll 331.43% 257.04% 176.49% 167.11% 140.69% 137.66% 90.93% 26.89% 23.25% 19.55%

Prince Georges County Maryland

Required Supplementary Information

Schedule of County Contributions

Last 10 Fiscal Years

112

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Prince Georges County Maryland

Required Supplementary Information

Schedule of County Contributions

Last 10 Fiscal Years

Correctional Officers' Supplemental Actuarially determined contribution 369,383$ 406,628$ 517,388$ 620,834$ 675,703$ 559,655$ 528,851$ 568,320$ 546,421$ 142,397$

Contributions in relation to the actuarially

determined contribution 369,383 406,628 517,388 620,834 675,703 559,655 528,851 568,320 546,421 142,397

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 866,080$ 950,013$ 1,211,915$ 1,451,278$ 1,567,767$ 1,613,254$ 1,547,850$ 1,689,161$ 1,726,284$ 1,825,432$

Contributions as a percentage of covered payroll 42.65% 42.80% 42.69% 42.78% 43.10% 34.69% 34.17% 33.65% 31.65% 7.80%

Crossing Guards Actuarially determined contribution 88,146$ 80,300$ 77,415$ 85,297$ 87,270$ 81,888$ 86,674$ 85,002$ 79,090$ 74,880$

Contributions in relation to the actuarially

determined contribution 88,146 80,300 77,415 85,297 87,270 81,888 86,674 85,002 79,090 74,880

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 1,661,855$ 1,515,563$ 1,458,659$ 1,606,345$ 1,568,767$ 1,478,859$ 1,576,052$ 1,560,515$ 1,480,461$ 1,635,018$

Contributions as a percentage of covered payroll 5.30% 5.30% 5.31% 5.31% 5.56% 5.54% 5.50% 5.45% 5.34% 4.58%

AFSCME Actuarially determined contribution 3,319,479$ 3,097,126$ 3,034,645$ 3,248,913$ 4,203,607$ 3,924,252$ 3,876,642$ 4,063,116$ 3,907,035$ 3,761,772$

Contributions in relation to the actuarially

determined contribution 3,319,479 3,097,126 3,034,645 3,248,913 4,203,607 3,924,252 3,876,642 4,063,116 3,907,035 3,761,772

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 51,100,404$ 47,442,986$ 46,925,851$ 50,063,087$ 51,962,760$ 54,596,819$ 54,115,932$ 56,189,039$ 54,702,748$ 57,385,298$

Contributions as a percentage of covered payroll 6.50% 6.53% 6.47% 6.49% 8.09% 7.19% 7.16% 7.23% 7.14% 6.56%

General Schedule Actuarially determined contribution 8,172,803$ 7,144,886$ 6,432,619$ 6,607,768$ 7,757,860$ 7,189,526$ 6,269,930$ 6,225,415$ 5,687,109$ 5,355,284$

Contributions in relation to the actuarially

determined contribution 8,172,803 7,144,886 6,432,619 6,607,768 7,757,860 7,189,526 6,269,930 6,225,415 5,687,109 5,355,284

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 113,585,235$ 99,248,176$ 89,346,878$ 91,566,772$ 92,547,260$ 96,687,856$ 83,866,383$ 84,317,601$ 79,224,231$ 81,358,176$

Contributions as a percentage of covered payroll 7.20% 7.20% 7.20% 7.22% 8.38% 7.44% 7.48% 7.38% 7.18% 6.58%

Fire Civilian Actuarially determined contribution 430,406$ 467,026$ 436,162$ 474,312$ 511,188$ 455,754$ 412,724$ 425,660$ 374,931$ 339,173$

Contributions in relation to the actuarially

determined contribution 430,406 467,026 436,162 474,312 511,188 455,754 412,724 425,660 374,931 339,173

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 3,620,232$ 3,936,834$ 3,671,858$ 3,934,806$ 3,772,598$ 4,007,893$ 3,634,202$ 3,879,187$ 3,935,198$ 4,213,435$

Contributions as a percentage of covered payroll 11.89% 11.86% 11.88% 12.05% 13.55% 11.37% 11.36% 10.97% 9.53% 8.05%

113

2019 2018 2017 2016 2015 2014 2013 2012 2011 2010

Prince Georges County Maryland Required Supplementary Information

Schedule of County Contributions Last 10 Fiscal Years

Police Civilian Actuarially determined contribution 935,069$ 810,064$ 746,382$ 845,730$ 1,089,407$ 1,068,827$ 998,499$ 1,050,281$ 968,151$ 882,194$

Contributions in relation to the actuarially determined contribution 935,069 810,064 746,382 845,730 1,089,407 1,068,827 998,499 1,050,281 968,151 882,194

Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Covered payroll 20,187,629$ 17,327,807$ 15,614,385$ 17,408,900$ 17,614,642$ 19,058,383$ 17,251,532$ 17,910,236$ 17,347,443$ 17,631,392$

Contributions as a percentage of payroll 4.63% 4.67% 4.78% 4.86% 6.18% 5.61% 5.79% 5.86% 5.58% 5.00%

2018 2017 2016 2015 2014 MSRPS

Contractually required contribution 13,773,607$ 12,613,132$ 13,366,027$ 15,363,699$ 16,220,418$

Contributions in relation to the contractually determined contribution 13,773,607 12,613,132 13,366,027 15,363,699 16,220,418

Contribution deficiency (excess) -$ -$ -$ -$ -$

Covered payroll 208,197,734$ 199,388,943$ 198,403,627$ 195,770,350$ 196,774,400$

Contributions as a percentage of covered-payroll 6.62% 6.33% 6.74% 7.85% 8.24%

OPEB Fiscal year ending June 30 2019 2018 2017

Actuarially Determined Contribution 44,508$ 40,974$ 121,978$ Contribution made in relation to the actuarially determine contribution (44,508) (40,974) 35,698 Contribution Deficiency (Excess) -$ -$ (86,280)$

Covered payroll 590,544$ 552,125$ 536,044$ OPEB Contribution as a percentage of payroll 7.54% 7.42% 6.66% (1) GASB74 implemented in Fiscal Year 2017. Ultimately 10 years will be displayed.

Fiscal year ending June 30

2019 2018 2017 Money-weighted rate of return, net of investment expense 7.92% 5.21% 6.79%

(1) GASB74 implemented in Fiscal Year 2017. Ultimately 10 years will be displayed.

Required Supplementary Information Schedule of Contribution

Fiscal Year 2017 through 2019(1)

Post-Employment Other than Pensions Plan (OPEB)

Prince Georges County Maryland

Post-Employment Other than Pensions Plan (OPEB)

Prince Georges County Maryland

Required Supplementary Information

Schedule of Investment Returns

Fiscal Year 2017 through 2019(1)

Required Supplementary Information Schedule of County Contributions

Fiscal Year 2014 through 2018

Prince Georges County Maryland

114

INDIVIDUAL FUND STATEMENTS AND SCHEDULES

This sub-section contains the Combining and Individual Fund Statements for the General Fund, Nonmajor Governmental Funds, Internal Service Funds, Fiduciary Funds, and Nonmajor Component Units. Also included are Supplementary Schedules.

Exhibits B

The General Fund is used to account for resources traditionally associated with government which are not legally or by sound financial management required to be accounted for in another fund.

GENERAL FUND

Exhibit B-1

Assets Liabilities, Deferred Inflow of Resources, and Fund Balance Cash and investments 423,588,282$ Liabilities: Taxes receivable: Due to Redevelopment Authority 7,497,098$

Property taxes 22,203,996 Compenated absences & temination benefits payable 534,601 Less allowance for uncollectible taxes (13,667,422) Accounts payable 43,866,357

Net property taxes 8,536,574 Accrued costs 33,015,358 Unearned revenue 18,296,933

Accounts receivable 52,234,180 Deposits 33,320,258 Less allowance for uncollectible accounts (1,353,587) Due to Revenue Authority 312,105

Net accounts receivable 50,880,593 Total liabilities 136,842,710

Deferred Inflow of Resources: Notes receivable 20,492,044 Unavailable revenue - income taxes 80,500,406

Less allowance for uncollectible notes (704,964) Unavailable revenue - property tax 7,670,330 Net notes receivable 19,787,080 Unavailable revenue - other 1,490,147

Total deferred inflow of resources 89,660,883

Accrued interest receivable 3,477,118 89,660,883 Fund balance:

Due from other funds: Nonspendable 2,810,871 Capital Projects 58,000,000 Restricted Water Quality Management 7,000,000 Economic stabilization 172,149,835 OPEB 1,700,000 Equipment purchases 36,326,106

Total due from other funds 66,700,000 Total Restricted 208,475,941

Due from component units: Committed - Operating Reserve 68,859,934 Housing Authority, net of allowance 6,018,453 Revenue Authority 310,329 Community Television 450,000 Assigned

Total due from component units 6,778,782 Economic Development 33,503,806 Local Impact Grant 2,335,582 Summer Youth Enrichment Program 1,290,315

Due from other governmental units: Property Sales, Acquisitions & HIT 6,698,108 State 166,061,234 Other 20,600,782 Federal 100,004 Total Assigned 64,428,593 Other 7,208,121

Total due from other governmental units 173,369,359 Unassigned 235,564,370

Inventories, at average cost 2,810,871 Cash and investments-restricted 50,664,643 Total fund balance 580,139,709 Other assets 50,000

806,643,302$ 806,643,302$

PRINCE GEORGE'S COUNTY, MARYLAND Balance Sheet General Fund June 30, 2019

115

Exhibit B-2

Revenues: Taxes $ 1,876,910,179 Licenses and permits 64,692,411 Fines and forfeitures 12,494,706 Use of money and property 23,936,760 Charges for services 49,981,285 Intergovernmental 35,226,053 Miscellaneous 1,442,506

Total revenues 2,064,683,900

Expenditures: General government 347,622,728 Public safety 736,850,646 Environmental 4,657,444 Health and Human Services 34,527,747 Infrastructure and Development 33,126,538 Payments to component units 828,583,500 Debt Service 37,139,081

Total expenditures 2,022,507,684

Excess of revenues over expenditures 42,176,216 Other financing sources (uses):

Transfer In - Housing Investment Trust 2,500,000 Purchase agreement financing 165,462,675 Transfers out - other funds (158,018,140)

Total other financing sources (uses) 9,944,535

Excess of revenues and other financing sources under expenditures and other uses 52,120,751

Fund balance, beginning of year 528,018,958 Fund balance, end of year $ 580,139,709

PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue, Expenditures, and Changes in Fund Balance

General Fund For the year ended June 30, 2019

116

Exhibit B-3

Variance Budget Positive

As Revised General Fund Economic Incentive

Transportation Improvement

Property Management Total (Negative)

General property taxes: Real property (net of credits) $ 825,752,600 813,171,325 - - - 813,171,325 (12,581,275) Unincorporated business personal property 4,782,100 1,225,510 - - - 1,225,510 (3,556,590) Railroad and public utility 36,732,700 37,716,126 - - - 37,716,126 983,426 Corporate personal property 46,664,800 44,000,375 - - - 44,000,375 (2,664,425)

Total general property taxes 913,932,200 896,113,336 - - - 896,113,336 (17,818,864)

Local taxes: Income 600,520,300 635,864,183 - - - 635,864,183 35,343,883 State income disparity grant 34,099,600 34,099,612 - - - 34,099,612 12 Recordation 52,643,800 51,315,782 - - - 51,315,782 (1,328,018) Interest and penalties on delinquent taxes 3,317,900 3,647,684 - - - 3,647,684 329,784 Transfer 126,719,600 117,687,097 - - - 117,687,097 (9,032,503) Trailer camp 42,200 41,875 - - - 41,875 (325) Hotel/motel 11,300,000 9,958,096 - - - 9,958,096 (1,341,904) Amusement 17,468,100 14,967,055 - 3,362,934 - 18,329,989 861,889 Telecommunications tax 27,834,700 20,835,371 - - - 20,835,371 (6,999,329) Energy tax 72,356,300 83,870,176 - - - 83,870,176 11,513,876

Total local taxes 946,302,500 972,286,931 - 3,362,934 - 975,649,865 29,347,365

Shared taxes: Gas and motor vehicle 3,047,900 2,998,300 - - - 2,998,300 (49,600) State transfer taxes 381,100 2,148,678 - - - 2,148,678 1,767,578

3,429,000 5,146,978 - - - 5,146,978 1,717,978

Total taxes 1,863,663,700 1,873,547,245 - 3,362,934 - 1,876,910,179 13,246,479

(Continued)

PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Actual Revenues

117

Exhibit B-3, Cont.

Variance Budget Positive

As Revised General Fund Economic Incentive

Transportation Improvement

Property Management Total (Negative)

Licenses and permits: Street privileges and permits $ 5,070,000 4,716,376 - - - 4,716,376 (353,624) Liquor license and permits 2,605,600 2,163,474 - - - 2,163,474 (442,126) Traders 667,000 812,543 - - - 812,543 145,543 Hawkers and peddlers 47,700 72,576 - - - 72,576 24,876 Taxicab 333,600 217,300 - - - 217,300 (116,300) Bonder's license fees 444,800 158,937 - - - 158,937 (285,863) Animal registration 102,500 90,483 - - - 90,483 (12,017) Mechanics 17,600 13,309 - - - 13,309 (4,291) Electrical licenses 238,300 275,119 - - - 275,119 36,819 Building permits 19,835,000 23,044,349 - - - 23,044,349 3,209,349 Single family and apartment rental license fee 2,970,800 3,631,951 - - - 3,631,951 661,151 New sign permits 206,500 99,185 - - - 99,185 (107,315) Burglar alarm 938,100 727,813 - - - 727,813 (210,287) Benefit performance and casino permits 11,800 3,203 - - - 3,203 (8,597) Board of registration - contractor's fee 15,400 9,527 - - - 9,527 (5,873) Health permits 2,747,000 2,634,664 - - - 2,634,664 (112,336) Secondhand dealers 30,800 13,755 - - - 13,755 (17,045) Gaming Revenue 22,436,800 25,889,691 - 25,889,691 3,452,891 Other 23,600 118,156 - - - 118,156 94,556

Total licenses and permits 58,742,900 64,692,411 - - - 64,692,411 5,949,511

Fines and forfeitures: Motor vehicles - 362,865 - - - 362,865 362,865 Animal - 59,235 - - - 59,235 59,235 Automated Speed Enforcement 7,200,000 6,050,877 - - - 6,050,877 (1,149,123) Traffic Light 8,250,000 5,712,704 - - - 5,712,704 (2,537,296) Other 885,600 309,025 - - - 309,025 (576,575)

Total fines and forfeitures 16,335,600 12,494,706 - - - 12,494,706 (3,840,894) (Continued)

General Fund For the year ended June 30, 2019

Actual Revenues

PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis), Continued

118

Exhibit B-3, Cont.

Variance Budget Positive

As Revised General Fund Economic Incentive

Transportation Improvement

Property Management Total (Negative)

Use of money and property: Interest and dividends $ 3,350,000 19,221,860 954,718 - - 20,176,578 16,826,578 Telephone commissions 414,100 363,658 - - - 363,658 (50,442) Rental of County-owned property 1,479,200 1,431,293 - - - 1,431,293 (47,907) Xerox commissions 90,100 77,191 - - - 77,191 (12,909) Vending machines and cafeteria commissions 47,000 54,446 - - - 54,446 7,446 Other use of money and property 16,800 62,518 1,771,076 - - 1,833,594 1,816,794

Total use of money and property 5,397,200 21,210,966 2,725,794 - - 23,936,760 18,539,560

Charges for services: Sheriff's fees 3,372,400 2,877,544 - - - 2,877,544 (494,856) Zoning Appeals Board fee 38,000 40,742 - - - 40,742 2,742 Tax certification fees 27,000 (75,445) - - - (75,445) (102,445) Tax collection service 65,000 65,000 - - - 65,000 - Health fees 2,527,400 2,397,114 - - - 2,397,114 (130,286) Appearance and witness fees 185,000 163,477 - - - 163,477 (21,523) Emergency transport and related services 14,857,700 14,615,837 - - - 14,615,837 (241,863) Tax sale cost recoveries 63,000 69,025 - - - 69,025 6,025 Housing - State prisoners 919,800 501,570 - - - 501,570 (418,230) Housing - Federal prisoners 139,800 10,320 - - - 10,320 (129,480) Contractual police services 870,000 1,325,018 - - - 1,325,018 455,018 Fire inspection fee 305,000 328,277 - - - 328,277 23,277 Inmate commissions 400,400 348,249 - - - 348,249 (52,151) Animal control fees 232,700 196,799 - - - 196,799 (35,901) Circuit Court marriage ceremonies 34,000 26,880 - - - 26,880 (7,120) Public safety surcharge 1,488,000 1,530,495 - - - 1,530,495 42,495 Local 911 fee 6,745,700 7,297,350 - - - 7,297,350 551,650 Cable franchise fees 13,575,400 12,436,518 - - - 12,436,518 (1,138,882) Stadium contract revenue 944,500 2,484,197 - - - 2,484,197 1,539,697 MGM Contract Revenue 1,600,000 1,766,565 - 1,766,565 166,565 Jury fees reimbursements 600,000 745,685 - - - 745,685 145,685 Sex offenders registration fee 150,000 151,000 - - - 151,000 1,000 Other 553,000 679,068 - - - 679,068 126,068

Total charges for services 49,693,800 49,981,285 - - - 49,981,285 287,485 (Continued)

PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis), Continued

General Fund For the year ended June 30, 2019

Actual Revenues

119

Exhibit B-3, Cont.

Variance Budget Positive

As Revised General Fund Economic Incentive

Transportation Improvement

Property Management Total (Negative)

Intergovernmental revenues: Police protection $ 11,238,500 11,500,016 - - - 11,500,016 261,516 Land management 11,000 10,972 - - - 10,972 (28) Health Department - State share 6,344,200 2,021,683 - - - 2,021,683 (4,322,517) Racing grant 1,000,000 1,000,000 - - - 1,000,000 - Fish and wildlife service 168,000 168,205 - - - 168,205 205 Teacher Retirement grant 9,628,700 9,628,702 - - - 9,628,702 2 FEMA Reimbursement - 32,043 - - - 32,043 32,043 State grants 1,168,500 25,113 - - - 25,113 (1,143,387) Federal grants 150,400 461,074 - - 461,074 310,674 DSS salary reimbursement 235,000 116,511 - - - 116,511 (118,489) M-NCPPC reimbursement 5,175,600 4,790,160 - - - 4,790,160 (385,440) Other 939,800 5,471,574 - - - 5,471,574 4,531,774

Total intergovernmental revenues 36,059,700 35,226,053 - - - 35,226,053 (833,647)

Miscellaneous revenues: Cedarville state forest - 26,778 - - - 26,778 26,778 Sale of surplus property 773,200 138,630 - - - 138,630 (634,570) Sale of voter lists 6,800 3,446 - - - 3,446 (3,354) Sale of accident reports and photos 160,300 112,386 - - - 112,386 (47,914) Other miscellaneous sales 328,100 74,799 - - 29,446 104,245 (223,855) Miscellaneous revenue 2,000,000 1,057,021 - - - 1,057,021 (942,979)

Total miscellaneous revenues 3,268,400 1,413,060 - - 29,446 1,442,506 (1,825,894)

$ 2,033,161,300 2,058,565,726 2,725,794 3,362,934 29,446 2,064,683,900 31,522,600

Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis), Continued General Fund

Actual Revenues

For the year ended June 30, 2019

PRINCE GEORGE'S COUNTY, MARYLAND

120

Exhibit B-4 PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

General Government:

County Executive: Compensation $ 5,411,500 5,286,772 124,728 Fringe benefits 1,285,700 1,181,256 104,444 Other current expenses 400,900 498,091 (97,191)

Total County Executive 7,098,100 6,966,119 131,981

Legislative Branch: Compensation 11,952,200 11,426,770 525,430 Fringe benefits 3,457,100 3,207,785 249,315 Other current expenses 6,519,000 4,639,024 1,879,976 Capital Outlay 29,400 29,400 Project charges (1,188,100) (671,278) (516,822)

Total Legislative Branch 20,769,600 18,602,301 2,167,299

Office of Ethics and Accountability: Compensation 592,700 543,820 48,880 Fringe benefits 168,900 150,524 18,376 Other current expenses 92,400 95,202 (2,802)

Total Office of Ethics and Accountability 854,000 789,546 64,454

Circuit Court: Compensation 11,323,600 11,259,391 64,209 Fringe benefits 3,646,300 3,392,825 253,475 Other current expenses 3,115,000 3,079,848 35,152 Project charges (265,600) (43,905) (221,695)

Total Circuit Court 17,819,300 17,688,159 131,141

(Continued)

121

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

General Government, continued:

Orphan's Court: Compensation $ 369,000 362,567 6,433 Fringe benefits 104,400 88,850 15,550 Other current expenses 29,800 31,537 (1,737)

Total Orphan's Court 503,200 482,954 20,246

Personnel Board: Compensation 211,200 212,327 (1,127) Fringe benefits 54,100 54,279 (179) Other current expenses 87,800 80,950 6,850

Total Personnel Board 353,100 347,556 5,544

Office of Finance: Compensation 5,067,900 4,763,621 304,279 Fringe benefits 1,642,000 1,530,289 111,711 Other current expenses 716,500 635,926 80,574 Project charges (3,423,300) (3,306,557) (116,743)

Total Office of Finance 4,003,100 3,623,279 379,821

Citizen Complaint Oversight Panel: Compensation 164,900 164,286 614 Fringe benefits 58,400 52,400 6,000 Other current expenses 89,800 68,091 21,709

Total Citizen Complaint Oversight Panel 313,100 284,777 28,323

(Continued)

122

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

General Government, continued:

Office of Community Relations: Compensation $ 4,008,300 3,413,276 595,024 Fringe benefits 1,235,100 1,130,639 104,461 Other current expenses 803,900 708,710 95,190

Total Office of Community Relations 6,047,300 5,252,625 794,675

Peoples Zoning Council: Other current expenses 250,000 250,000 -

Total Peoples Zoning Council 250,000 250,000 -

Office of Management and Budget: Compensation 2,406,600 2,114,331 292,269 Fringe benefits 724,400 600,193 124,207 Other current expenses 129,500 129,335 165 Project charges (141,800) (43,195) (98,605)

Total Office of Management and Budget 3,118,700 2,800,664 318,036

Board of License Commissioners: Compensation 1,083,300 916,565 166,735 Fringe benefits 446,300 304,023 142,277 Other current expenses 131,800 123,631 8,169

Total Board of License Commissioners 1,661,400 1,344,219 317,181

Office of Law: Compensation 5,334,400 5,130,748 203,652 Fringe benefits 1,664,300 1,497,214 167,086 Other current expenses 437,800 424,072 13,728 Project charges (2,892,900) (2,962,809) 69,909

Total Office of Law 4,543,600 4,089,225 454,375

(Continued)

123

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

General Government, continued:

Office of Human Resource Management: Compensation $ 6,544,100 6,242,783 301,317 Fringe benefits 1,583,800 1,624,744 (40,944) Other current expenses 1,300,300 1,426,237 (125,937) Project charges (1,841,900) (1,996,420) 154,520

Total Office of Human Resource Management 7,586,300 7,297,344 288,956

Board of Elections: Compensation 4,351,300 3,939,172 412,128 Fringe benefits 531,200 569,371 (38,171) Other current expenses 898,500 753,473 145,027

Total Board of Elections 5,781,000 5,262,016 518,984

Office of Central Services: Compensation 10,130,100 9,491,285 638,815 Fringe benefits 3,535,200 3,115,337 419,863 Other current expenses 9,216,900 9,516,287 (299,387) Project charges (1,875,900) (1,335,225) (540,675)

Total Office of Central Services 21,006,300 20,787,684 218,616

Property Management: Other current expenses 600,000 340,269 259,731

Total Property Management 600,000 340,269 259,731

Collington Center: Other current expenses 5,000 5,000 -

Total Collington Center 5,000 5,000 -

(Continued)

124

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

General Government, continued: Non-Departmental:

Grants to community organizations $ 6,176,000 6,003,291 172,709 Grants to governmental groups 328,900 382,603 (53,703) Grants and contributions to component units 8,725,300 8,139,238 586,062 Memberships 666,100 657,310 8,790 Economic Development 5,040,600 5,143,487 (102,887) Economic Development Incentive 9,000,000 4,858,428 4,141,572 Conference and Visitors Bureau 1,385,200 1,385,200 - Discretionary Grants 6,187,000 6,665,400 (478,400) General Fund insurance payments 10,000,000 10,000,000 - Judgments - associated legal and professional expenses 200,000 - 200,000 Professional Service 14,572,500 15,324,439 (751,939) Postage 1,350,000 1,135,863 214,137 Utilities and leases 56,724,400 47,626,743 9,097,657 Debt payments 8,142,800 7,804,629 338,171 Debt issuance costs 12,500 7,050 5,450 Project charges (3,534,600) (3,037,878) (496,722) Employ Prince George's Workforce 1,472,800 1,135,100 337,700

Grant to Dimensions Health Corporation 15,000,000 14,420,113 579,887 Interest 700,000 283,062 416,938 Group Health (Retirees) 38,048,400 38,047,544 856 Group Life (Retirees) 1,200,000 1,300,996 (100,996) Unemployment Compensation 475,000 475,000 - Deferred compensation contributions 200,000 118,089 81,911 Retired county personnel pension payments 50,000 68,832 (18,832) Compensated Absences - 191,653 (191,653) Summer Youth Programs 3,327,100 3,421,720 (94,620) Economic Development/Infrastructure 3,100,000 - 3,100,000 Other miscellaneous 85,000 (217,009) 302,009

Total Non-Departmental 188,635,000 171,340,903 17,294,097 Total General Government 290,948,100 267,554,640 23,393,460

(Continued)

125

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

Public Safety:

Office of the State's Attorney: Compensation $ 13,050,600 12,827,695 222,905 Fringe benefits 4,071,800 3,999,766 72,034 Other current expenses 1,339,800 1,601,480 (261,680) Project charges (231,000) (197,741) (33,259)

Total Office of the State's Attorney 18,231,200 18,231,200 -

Police Department: Compensation 192,173,800 183,865,263 8,308,537 Fringe benefits 112,650,000 104,516,651 8,133,349 Other current expenses 34,278,700 34,605,250 (326,550) Capital Outlay 275,000 749,975 (474,975) Project charges (1,370,000) (333,737) (1,036,263)

Total Police Department 338,007,500 323,403,402 14,604,098

Fire Department: Compensation 107,021,900 107,870,874 (848,974) Fringe benefits 74,163,600 75,353,873 (1,190,273) Other current expenses 24,664,600 22,440,777 2,223,823 Capital Outlay 75,000 161,168 (86,168) Project charges (260,000) (300,547) 40,547

Total Fire Department 205,665,100 205,526,145 138,955

Sheriff's Department: Compensation 27,450,000 27,602,069 (152,069) Fringe benefits 16,305,200 16,269,500 35,700 Other current expenses 6,309,600 5,215,877 1,093,723 Project charges - (88,036) 88,036

Total Sheriff's Department 50,064,800 48,999,410 1,065,390

(Continued)

126

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

Public Safety, continued: Department of Corrections:

Compensation $ 52,178,300 50,922,538 1,255,762 Fringe benefits 24,732,500 24,388,496 344,004 Other current expenses 12,830,100 12,967,733 (137,633) Capital Outlay - 15,090 (15,090) Project charges (191,500) (34,665) (156,835)

Total Department of Corrections 89,549,400 88,259,192 1,290,208

Office of Homeland Security: Compensation 14,860,100 14,603,202 256,898 Fringe benefits 4,250,000 4,262,183 (12,183) Other current expenses 15,222,300 13,735,931 1,486,369

Project charges - (200) 200

Total Office of Homeland Security 34,332,400 32,601,116 1,731,284

Total Public Safety 735,850,400 717,020,465 18,829,935

Environmental:

Soil Conservation: Compensation 1,168,000 1,034,652 133,348 Fringe benefits 361,000 315,892 45,108 Other current expenses 51,400 50,911 489 Project charges (1,580,400) (1,401,455) (178,945) Total Soil Conservation - - -

Department of the Environment: Compensation 6,542,300 5,864,644 677,656 Fringe benefits 2,250,600 2,103,004 147,596 Other current expenses 1,335,800 1,392,924 (57,124) Project charges (5,810,500) (5,072,211) (738,289)

Total Department of the Environment 4,318,200 4,288,361 29,839

Total Environmental 4,318,200 4,288,361 29,839

(Continued)

127

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

Health and Human Services:

Department of Family Services: Compensation $ 2,423,300 2,078,850 344,450 Fringe benefits 647,000 612,592 34,408 Other current expenses 2,479,400 2,061,220 418,180 Project charges (50,000) - (50,000)

Total Department of Family Services 5,499,700 4,752,662 747,038

Health Department: Compensation 16,043,700 14,838,395 1,205,305 Fringe benefits 5,173,700 5,093,575 80,125 Other current expenses 7,616,800 6,461,338 1,155,462 Capital Outlay - 25,985 (25,985) Project charges (2,287,200) (2,125,106) (162,094)

Total Health Department 26,547,000 24,294,187 2,252,813

Department of Social Services:

Compensation 2,490,900 2,247,549 243,351 Fringe benefits 510,600 492,618 17,982 Other current expenses 2,580,200 2,394,568 185,632

Total Department of Social Services 5,581,700 5,134,735 446,965

Total Health and Human Services 37,628,400 34,181,584 3,446,816

(Continued)

128

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

Infrastructure and Development:

Department of Public Works and Transportation:

Compensation $ 15,374,600 14,962,852 411,748 Fringe benefits 5,667,200 5,235,973 431,227 Other current expenses 53,003,300 46,531,290 6,472,010 Capital Outlay 4,470,000 2,607,404 1,862,596 Project charges (62,808,500) (53,998,212) (8,810,288)

Total Department of Public Works and Transportation 15,706,600 15,339,307 367,293

Department of Permitting, Inspections and Enforcement:

Compensation 19,525,100 18,187,665 1,337,435 Fringe benefits 6,508,400 5,887,905 620,495 Other current expenses 7,174,100 4,277,483 2,896,617 Project charges (22,784,300) (19,401,934) (3,382,366)

Total Department of Permitting, Inspections and Enforcement 10,423,300 8,951,119 1,472,181

Department of Housing and Community Development: Compensation 2,637,300 2,344,304 292,996 Fringe benefits 870,300 692,163 178,137 Other current expenses 813,100 811,262 1,838 Housing Investment Trust 6,595,800 1,631,535 4,964,265

Total Department of Housing and Community Development 10,916,500 5,479,264 5,437,236

Total Infrastructure and Development 37,046,400 29,769,690 7,276,710

(Continued)

129

Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)

General Fund For the year ended June 30, 2019

Year ended June 30, 2019 Variance

Budget Positive as revised Expenditures (Negative)

Payments to Component Units: $

Board of Education 763,562,900 763,562,900 - Community College 42,620,600 42,620,600 - Memorial Library 22,400,000 22,400,000 -

Total payments to component units 828,583,500 828,583,500 -

Total expenditures $ 1,934,375,000 1,881,398,240 52,976,760 Transfers out:

Special revenue funds $ (82,000) (82,000) - Internal Service funds (2,000,000) (2,000,000) - Capital projects fund (26,233,200) (27,378,459) (1,145,259) Housing Investment Trust fund (2,500,000) (2,500,000) - Debt service fund (125,948,500) (126,057,681) (109,181)

Total transfers out (156,763,700) (158,018,140) (1,254,440)

Total other financing sources (uses) $ (156,763,700) (158,018,140) (1,254,440)

130

Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.

NONMAJOR GOVERNMENTAL

Exhibits C

Domestic Violence Fund - to account for the receipt of revenue from marriage license fees to finance the costs of shelters for homeless spouses who are the object of domestic violence. Drug Enforcement and Education Fund - to account for the proceeds from the forfeiture or sale of property seized as a result of the enforcement of drug laws, which will finance costs associated with the County's drug enforcement and education activities.

The Debt Service Fund accounts for the payment of general long-term debt of the County (not serviced by Enterprise Funds), including state participation loans and service charges.

Exhibit C-1 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Balance Sheet Nonmajor Governmental Funds

June 30, 2019

Drug Enforcement

Domestic and Debt Assets Violence Education Total Service Total

Cash and investments 385,069$ 9,179,048 9,564,117 190,647 9,754,764 Cash with fiscal agents - - - 27,798,317 27,798,317 Due from other governmental units 26,780 - 26,780 - 26,780 Restricted cash and investments - - - 31,220,011 31,220,011

411,849 9,179,048 9,590,897 59,208,975 68,799,872

Liabilities and Fund Balances

Liabilities: Accounts payable 131,760 2,333,087 2,464,847 190,647 2,655,494

Total liabilities 131,760 2,333,087 2,464,847 190,647 2,655,494

Fund balances: Restricted 280,089 3,158,434 3,438,523 59,018,328 62,456,851 Assigned - 3,687,527 3,687,527 - 3,687,527

Total fund balances 280,089 6,845,961 7,126,050 59,018,328 66,144,378

411,849$ 9,179,048 9,590,897 59,208,975 68,799,872

131

Exhibit C-2 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Revenue, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds

For the year ended June 30, 2019

Drug Enforcement

Domestic and Debt Violence Education Total Service Total

Revenues: Taxes -$ - - 2,835,779 2,835,779 Licenses and permits 314,275 - 314,275 - 314,275 Fines and forfeitures - 951,781 951,781 - 951,781 Use of money and property:

Interest and dividends - 180,900 180,900 526,777 707,677 Charges for services - - - 35,620,739 35,620,739 Intergovernmental - - - 3,353,986 3,353,986 Sale of property - 390 390 - 390

Total revenues 314,275 1,133,071 1,447,346 42,337,281 43,784,627

Expenditures: General government - - - 825,682 825,682 Public safety - 6,049,994 6,049,994 - 6,049,994 Health and Human Services 361,799 - 361,799 - 361,799 Debt service: Principal retirement - - - 107,058,931 107,058,931 Interest - - - 67,337,592 67,337,592

Total expenditures 361,799 6,049,994 6,411,793 175,222,205 181,633,998

Excess of revenues over (under) expenditures (47,524) (4,916,923) (4,964,447) (132,884,924) (137,849,371) Other financing sources (uses):

Bond premium - - - 14,853,118 14,853,118 Transfers in - other funds 82,000 - 82,000 126,057,681 126,139,681

Total other financing sources (uses) 82,000 - 82,000 140,910,799 140,992,799

Net change in fund balances 34,476 (4,916,923) (4,882,447) 8,025,875 3,143,428

Fund balances, beginning of year 245,613 11,762,884 12,008,497 50,992,453 63,000,950

Fund balances, end of year 280,089$ 6,845,961 7,126,050 59,018,328 66,144,378

132

Domestic Violence Drug Enforcement and Education

Variance with Variance with Variance with Final Budget Final Budget Final Budget

Original Final Positive Original Final Positive Original Final Positive Budget Budget Actual (Negative) Budget Budget Actual (Negative) Budget Budget Actual (Negative)

Revenues: Licenses and permits $ 308,000 308,000 314,275 6,275 - - - - 308,000 308,000 314,275 6,275 Interest and Dividends 50,000 50,000 180,900 130,900 50,000 50,000 180,900 130,900 Fines and forfeitures - - - - 850,000 850,000 951,781 101,781 850,000 850,000 951,781 101,781 Sale of property - - - - 500 500 390 (110) 500 500 390 (110)

Total revenues 308,000 308,000 314,275 6,275 900,500 900,500 1,133,071 232,571 1,208,500 1,208,500 1,447,346 238,846

Expenditures: General government - - - - - - - - - - - - Public safety - - - - 7,515,000 7,515,000 6,049,994 1,465,006 7,515,000 7,515,000 6,049,994 1,465,006 Health and human services 390,000 390,000 361,799 28,201 - - - - 390,000 390,000 361,799 28,201

Total expenditures 390,000 390,000 361,799 28,201 7,515,000 7,515,000 6,049,994 1,465,006 7,905,000 7,905,000 6,411,793 1,493,207 Excess of revenues over (under) expenditures (82,000) (82,000) (47,524) 34,476 (6,614,500) (6,614,500) (4,916,923) 1,697,577 (6,696,500) (6,696,500) (4,964,447) 1,732,053

Other financing sources (uses): Transfers in - other funds 82,000 82,000 82,000 - - - - - 82,000 82,000 82,000 - Appropriated fund balance - - - - 6,614,500 6,614,500 - (6,614,500) 6,614,500 6,614,500 - (6,614,500)

Total other financing sources (uses) 82,000 82,000 82,000 - 6,614,500 6,614,500 - (6,614,500) 6,696,500 6,696,500 82,000 (6,614,500)

$ - - 34,476 34,476 - - (4,916,923) (4,916,923) - - (4,882,447) (4,882,447)

Fund balances, beginning of year 245,613 11,762,884 12,008,497 280,089 6,845,961 7,126,050

Exhibit C-3

Totals

Fund balances, end of year

Net change in fund balances (budgetary basis)

PRINCE GEORGE'S COUNTY, MARYLAND Combining Schedule of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual, Continued

Nonmajor Governmental Funds - Special Revenue For the year ended June 30, 2019

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134

Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Primary Government and to other government units, on a cost-reimbursement basis.

Self-Insurance Funds - to provide insurance protection to the Primary Government and the participating Component Unit Entities - Board of Education, Library, and Community College. The Life and Health Benefits Fund provides coverage for the Primary Government and Library employees. The Unemployment Compensation Fund covers required payments to the State of Maryland Unemployment Compensation Fund.

Vehicle Maintenance Fund - to account for the activities which provide the maintenance and repair services for County-owned vehicles.

Computer Services Fund - to provide for computer and office automation services to County departments and agencies.

Exhibits D

INTERNAL SERVICE FUNDS

Exhibit D-1 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Net Position Internal Service Funds

June 30, 2019

Life and Vehicle Computer

Assets Unemployment Property Automobile Worker's General Health Maintenance Services Compensation Loss Liability Compensation Liability Benefits Fund Fund Total

Current assets: Cash and investments 540,909$ 136,180 3,424,425 6,065,364 11,661,315 52,695,332 13,450,010 13,602,999 101,576,534 Accounts receivable - 2,553 28,645 21,315 - 169,080 214,849 1,742,912 2,179,354

Less allowance for uncollectible accounts - - Accrued interest receivable - 999 8,245 76,832 1,249 - - - 87,325 Due from component units - - - 1,221,007 - - - - 1,221,007 Due from other governmental units - - - - - - - 554,577 554,577 Inventories, at cost - - - - - - 816,948 179,518 996,466 Prepaid costs and deposits - - - 220,000 7,675 133,895 - - 361,570

Total current assets 540,909 139,732 3,461,315 7,604,518 11,670,239 52,998,307 14,481,807 16,080,006 106,976,833

Noncurrent assets: Capital assets:

Land - - - - - - 1,000,000 - 1,000,000 Buildings - - - - - - 3,250,026 - 3,250,026

Accumulated depreciation - - - - - - (2,681,498) - (2,681,498) Improvements other than buildings - - - - - - 282,382 - 282,382

Accumulated depreciation - - - - - - (282,382) - (282,382) Equipment - - - - - - 4,845,738 532 4,846,270

Accumulated depreciation - - - - - - (4,030,098) - (4,030,098)

Total noncurrent assets - - - - - - 2,384,168 532 2,384,700 Total assets 540,909 139,732 3,461,315 7,604,518 11,670,239 52,998,307 16,865,975 16,080,538 109,361,533

Deferred outflow of resources Pension deferrals - - - - - - 1,109,743 1,808,592 2,918,335 OPEB Deferrals - - - - - - 1,492,152 2,236,889 3,729,041

Total deferred outflow of resources -$ - - - - - 2,601,895 4,045,481 6,647,376

(Continued)

Self-Insurance Funds

135

Exhibit D-1, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Net Position Internal Service Funds

June 30, 2019

Life and Vehicle Computer

Unemployment Property Automobile Worker's General Health Maintenance Services Liabilities Compensation Loss Liability Compensation Liability Benefits Fund Fund Total

Current liabilities:

Current portion of compensated absences and termination benefits payable -$ - - - - - 498,081 834,499 1,332,580

Accounts payable 109,585 3,532 73,228 647,660 260,467 4,411,071 263,169 2,845,434 8,614,146 Accrued costs - - - - - - 299,647 402,876 702,523 Unearned revenue - - - - - 39,876 - - 39,876 Current portion of estimated liability on

pending claims 138,516 63,333 1,455,183 30,111,793 2,553,507 4,806,000 - - 39,128,332

Total current liabilities 248,101 66,865 1,528,411 30,759,453 2,813,974 9,256,947 1,060,897 4,082,809 49,817,457

Noncurrent liabilities: Compensated absences and termination

benefits payable, less current portion - - - - - - 100,072 - 100,072 Estimated liability on pending claims,

less current portion - 72,867 1,932,904 121,508,515 8,856,265 - - - 132,370,551 Net OPEB liability - - - - - - 10,518,685 16,635,225 27,153,910 Net pension liability - - - - - - 5,129,226 8,457,868 13,587,094

Total long-term liabilities - 72,867 1,932,904 121,508,515 8,856,265 - 15,747,983 25,093,093 173,211,627

Total liabilities 248,101 139,732 3,461,315 152,267,968 11,670,239 9,256,947 16,808,880 29,175,902 223,029,084

Deferred inflow of resources

Pension deferrals - - - - - - 594,889 984,033 1,578,922 OPEB Deferrals 1,898,899 2,907,662.00 4,806,561

Total deferred inflow of resources - - - - - - 2,493,788 3,891,695 6,385,483

Net position

Net investment in capital assets - - - - - - 2,384,168 532 2,384,700 Restricted - - - - - - - 5,921,545 5,921,545 Unrestricted 292,808 - - (144,663,450) - 43,741,360 (2,218,966) (18,863,654) (121,711,903)

Total net position 292,808$ - - (144,663,450) - 43,741,360 165,202 (12,941,578) (113,405,658)

Self-Insurance Funds

136

PRINCE GEORGE'S COUNTY, MARYLAND Combining Statement of Revenue, Expenses and Changes in Fund Net Position

Internal Service Funds For the year ended June 30, 2019

Life and Vehicle Computer Unemployment Property Automobile Worker's General Health Maintenance Services Compensation Loss Liability Compensation Liability Benefits Fund Fund Total

Operating revenues: Premium contributions 475,000$ 1,981,980 4,321,693 43,241,938 6,822,166 89,402,853 - - 146,245,630 Sales

Fuel sales - - - - - - 418,497 - 418,497 Office automation sales - - - - - - - 31,947,652 31,947,652

Charges for services: Maintenance and repair charges - - - - - - 12,637,364 - 12,637,364

Use of money and property - rentals - - - - - - 162,634 - 162,634 Miscellaneous - subrogations and other - 13,511 366,565 882,393 - - 10,307 - 1,272,776

Total operating revenues 475,000 1,995,491 4,688,258 44,124,331 6,822,166 89,402,853 13,228,802 31,947,652 192,684,553 Operating expenses:

Salaries - - - - - - 4,390,206 6,401,350 10,791,556 Fringe benefits - - - - - - 2,081,682 2,904,314 4,985,996 Contractual services - - - - - - 15,804 7,850,569 7,866,373 Materials - - - - - - 125,380 12,661,149 12,786,529 Facility and equipment rental - - - - - - 203,780 37,835 241,615 General and administrative:

Administrative expenses 15,416 163,462 1,805,098 4,920,048 2,027,075 2,204,081 267,998 485,050 11,888,228 State worker's compensation tax - - - 414,011 - - - - 414,011

Depreciation - - - - - - 242,308 - 242,308 Insurance claims 363,029 146,628 3,554,541 48,592,426 6,563,926 58,454,720 - - 117,675,270 Insurance premiums - 1,656,281 - 275,706 32,069 15,514,696 - - 17,478,752 Other:

Repair and maintenance - - - - - - 4,313,637 102,644 4,416,281 Total operating expenses 378,445 1,966,371 5,359,639 54,202,191 8,623,070 76,173,497 11,640,795 30,442,910 188,786,918 Operating income (loss) 96,555 29,120 (671,381) (10,077,860) (1,800,904) 13,229,356 1,588,007 1,504,742 3,897,635

Nonoperating revenue (expenses): Interest income - 3,816 76,419 1,096,297 52,902 - - - 1,229,434 Interest expense - - - - - - - - - Debt issuance costs - - - - - - - - - Gain (loss) on sale of capital assets - - - - - - (4,125) (4,125)

Total nonoperating revenue (expenses) - 3,816 76,419 1,096,297 52,902 - (4,125) - 1,225,309 Income (loss) before transfers 96,555 32,936 (594,962) (8,981,563) (1,748,002) 13,229,356 1,583,882 1,504,742 5,122,944 Interfund transfer in - 231,568 629,867 2,064,143 3,512,736 - - 2,000,000 8,438,314 Intrafund transfers out - (264,504) (34,905) (4,374,171) (1,764,734) - - - (6,438,314) Change in net position 96,555 - - (11,291,591) - 13,229,356 1,583,882 3,504,742 7,122,944

Total net position - beginning 196,253 - - (133,371,859) - 30,512,004 (1,418,680) (16,446,319) (120,528,601) Prior Period Adjustment - Total net position - end 292,808$ - - (144,663,450) - 43,741,360 165,202 (12,941,577) (113,405,657)

Exhibit D-2

Self-Insurance Funds

137

Self-Insurance Funds Life and Vehicle Computer Unemployment Property Automobile Worker's General Health Maintenance Services

Compensation Loss Liability Compensation Liability Benefits Fund Fund Total Cash flows from operating activities:

Cash received from customers -$ 924,094 464,422 17,202,476 1,272,677 2,116,864 612,858 7,678,110 30,271,501 Cash received from interfund charges 475,000 1,071,397 4,226,013 25,115,858 5,549,489 86,981,172 12,589,654 24,147,161 160,155,744 Cash payments to suppliers for goods and services (337,577) (167,138) (1,408,550) (5,074,073) (2,111,417) (81,542,140) (5,236,332) (20,185,660) (116,062,887) Cash payments to employees for services - - - - - (6,339,138) (9,399,723) (15,738,861) Premium and claim payments - (1,840,800) (2,990,060) (36,431,439) (4,759,937) - - - (46,022,236) Other cash receipts - - - - - - 10,306 - 10,306

Net cash and cash equivalents provided (used) by operating activities 137,423 (12,447) 291,825 812,822 (49,188) 7,555,896 1,637,348 2,239,888 12,613,567

Cash flows from noncapital financing activities: Interfund transfers in - 231,568 629,867 2,064,143 3,512,736 - - 2,000,000 8,438,314 Intrafund transfers in (out) - (264,504) (34,905) (4,374,171) (1,764,734) - - - (6,438,314)

Net cash and cash equivalents provided (used) by noncapital financing activities - (32,936) 594,962 (2,310,028) 1,748,002 - - 2,000,000 2,000,000

Cash flows from capital and related financing activities: Acquisition and construction of capital assets - - - - - - (301,827) - (301,827)

Net cash and cash equivalents used in capital and related financing activities - - - - - - (301,827) - (301,827)

Cash flows from investing activities: Interest on Investments - 3,808 74,233 1,079,725 52,865 - - - 1,210,631

Net cash and cash equivalents provided by investing activities - 3,808 74,233 1,079,725 52,865 - - - 1,210,631

Net increase (decrease) in cash and cash equivalents 137,423 (41,575) 961,020 (417,481) 1,751,679 7,555,896 1,335,521 4,239,888 15,522,371

Cash and cash equivalents, beginning of year 403,486 177,755 2,463,405 6,482,845 9,909,636 45,139,436 12,114,489 9,363,111 86,054,163 Cash and cash equivalents, end of year 540,909$ 136,180 3,424,425 6,065,364 11,661,315 52,695,332 13,450,010 13,602,999 101,576,534

(Continued)

For the year ended June 30, 2019

Exhibit D-3 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Cash Flows Internal Service Funds

138

Self-Insurance Funds Life and Vehicle Computer Unemployment Property Automobile Worker's General Health Maintenance Services

Compensation Loss Liability Compensation Liability Benefits Fund Fund Total Reconciliation of operating income to net cash

provided (used) by operating activities Operating income (loss) 96,555$ 29,120 (671,381) (10,077,860) (1,800,904) 13,229,356 1,588,007 1,504,742 3,897,635

Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation - equipment - - - - - - 242,308 - 242,308 Pension expense - - - - - - (14,145) (106,413) (120,558)

Accounts receivable - - 2,177 55,534 - 146,392 (15,982) (122,381) 65,740 Inventories - - - - - - (112,327) 1,120,709 1,008,382 Prepaid costs - - - (220,000) (130) (38,807) - - (258,937) Compensated absences and termination - - benefits payable - - - - - - 69,919 (6,904) 63,015 Accounts payable 59,985 (3,676) 396,548 259,986 (84,204) (1,996,196) (197,406) (169,123) (1,734,086) Accrued costs - - - - (8) - 76,974 19,258 96,224 Unearned revenue - - - (640,524) - (451,208) - - (1,091,732) Due from component units - - - (1,221,007) - - - - (1,221,007) Estimated liability on pending claims (19,117) (37,891) 564,481 12,656,693 1,836,058 (3,333,641) - - 11,666,583

Total adjustments 40,868 (41,567) 963,206 10,890,682 1,751,716 (5,673,460) 49,341 735,146 8,715,932 Net cash and cash equivalents provided (used) by operating activities 137,423 (12,447) 291,825 812,822 (49,188) 7,555,896 1,637,348 2,239,888 12,613,567

Non-cash investing, capital and related financing activities:

Decrease (increase) in accrued interest receivable - (8) (2,186) (16,572) (37) - - - (18,803) -$ (8) (2,186) (16,572) (37) - - - (18,803)

Combining Statement of Cash Flows Internal Service Funds

For the year ended June 30, 2019

Exhibit D-3, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

139

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140

Agency Funds - are legal and accounting methods used by government for the administration of assets that come into its possession and are purely custodial (assets equal liabilities) and do not involve measurement of results of operations.

Exhibits E

Pension Trusts - are fiduciary funds out of which retirement annuities and/or other benefits are paid to authorized and designated public employees.

Other Post Employment Benefit Trust - is used to account for retiree life and health benefits.

FIDUCIARY FUNDS

Trust Funds are used to account for assets held by the Primary Government in a trustee capacity. Agency Funds are used to account for assets held by the Primary Government as an agent for individuals, private organizations, other governments, and/or other funds.

Exhibit E-1

Other Post- Employment

Pension Trust Benefit Funds Trust Fund Total

Assets: Equity in pooled cash and investments 9,519,798$ $ 1,456,893 $ 10,976,691 Collateral for loaned securities 9,984,093 - 9,984,093 Investments:

Pooled separate accounts 531,038,165 - 531,038,165 U. S. Government & agency securities 34,843,653 - 34,843,653 Corporate bonds 37,566,783 - 37,566,783 Common stock 270,281,077 - 270,281,077 Real estate investment trust 8,930,961 - 8,930,961 International Government securities 1,196,606 - 1,196,606 Other International investments 1,493,087 - 1,493,087 Asset-backed securities 1,420,235 - 1,420,235 Money market funds - 60,781,567 60,781,567 Short-term investments 26,200,483 - 26,200,483 Commingled trust funds - 923,716 923,716 Alternative investments 1,163,549,814 - 1,163,549,814

Accounts receivable 1,891 68,540 70,431 Accrued interest receivable 1,165,675 1,735 1,167,410 Prepaid expenses 44,672 - 44,672

Total assets 2,097,236,993 63,232,451 2,160,469,444 Liabilities:

Collateral for loaned securities payable 9,984,093 - 9,984,093 Accounts payable 123,506 2,026,098 2,149,604 Accrued costs 1,168,813 366,299 1,535,112 Due to other funds - 1,700,000 1,700,000

Total liabilities 11,276,412 4,092,397 15,368,809

Net assets held in trust for benefit payments 2,085,960,581$ $ 59,140,054 $ 2,145,100,635

Pension and Other Postemployment Benefit Trust Funds Combining Statement of Fiduciary Plan Net Position

PRINCE GEORGE'S COUNTY, MARYLAND

June 30, 2019

141

Exhibit E-2

Other Post- Employment

Pension Trust Benefit Funds Trust Funds Total

Additions: Contributions:

Employer 145,318,257$ 44,508,344 189,826,601 Member 27,847,358 14,990,070 42,837,428 Other - 3,776,813 3,776,813 Total contributions 173,165,615 63,275,227 236,440,842

Investment income: Net appreciation (depreciation) in fair value of investments 66,698,004 4,486,216 71,184,220 Interest and dividends 48,559,968 91,398 48,651,366 Total investment income (loss) 115,257,972 4,577,614 119,835,586 Less investment expense 6,020,646 150,019 6,170,665 Net investment income (loss) 109,237,326 4,427,595 113,664,921 Total additions 282,402,941 67,702,822 350,105,763

Deductions: Benefits 181,958,424 60,413,237 242,371,661 Refunds of contributions 10,158,606 - 10,158,606 General and administrative expenses 2,492,328 1,336,548 3,828,876

Total deductions 194,609,358 61,749,785 256,359,143

Net increase (decrease) 87,793,583 5,953,037 93,746,620

Net position restricted for benefit payments, beginning of year 1,998,166,998 53,187,017 2,051,354,015 Net position restricted for benefit payments, end of year 2,085,960,581$ 59,140,054$ 2,145,100,635$

PRINCE GEORGE'S COUNTY, MARYLAND Combining Statement of Changes in Fiduciary Plan Net Position

Pension and Other Postemployment Benefit Trust Funds For the year ended June 30, 2019

142

Exhibit E-3 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Fiduciary Plan Net Position Pension Trust Funds

June 30, 2019

Comprehensive Pension Plans Supplemental Pension Plans Fire Deputy Correctional Deputy Correctional Crossing General Fire Police

Police Service Sheriff's Officers' Sheriff Officers' Guards AFSCME Schedule Civilian Civilian Total Assets:

Equity in pooled cash and investments 3,166,938$ 2,476,354 816,660 1,048,127 121,364 95,022 56,852 483,782 780,681 141,206 332,812 9,519,798 Collateral for loaned securities 3,931,216 2,186,437 611,630 1,083,466 34,605 74,869 11,965 708,318 1,106,477 61,613 173,497 9,984,093 Investments:

Pooled separate accounts - - 84,004,627 148,809,242 4,752,784 10,282,897 1,643,336 97,284,333 151,969,741 8,462,206 23,828,999 531,038,165 U. S. Government & agency securities 24,265,967 10,577,686 - - - - - - - - - 34,843,653 Corporate bonds 25,804,975 11,761,808 - - - - - - - - - 37,566,783 Common stock 180,215,650 90,065,427 - - - - - - - - - 270,281,077 Real Estate Investment Trust 5,945,473 2,985,488 - - - - - - - - - 8,930,961 International Government securities 816,545 380,061 - - - - - - - - - 1,196,606 Other International investments 1,025,605 467,482 - - - - - - - - - 1,493,087 Asset-backed securities 1,127,653 292,582 - - - - - - - - - 1,420,235 Short-term investments 14,781,294 11,419,189 - - - - - - - - - 26,200,483 Alternative investments 792,822,982 370,726,832 - - - - - - - - - 1,163,549,814

Accounts receivable - - - 1,891 - - - - - - - 1,891 Accrued interest receivable 398,585 195,098 92,756 159,614 5,050 11,175 1,871 104,118 162,223 9,241 25,944 1,165,675 Prepaid expenses 22,780 10,564 1,733 3,123 103 227 39 2,111 3,271 193 528 44,672

Total assets 1,054,325,663 503,545,008 85,527,406 151,105,463 4,913,906 10,464,190 1,714,063 98,582,662 154,022,393 8,674,459 24,361,780 2,097,236,993

Liabilities:

Collateral for loaned securities payable 3,931,216 2,186,437 611,630 1,083,466 34,605 74,869 11,965 708,318 1,106,477 61,613 173,497 9,984,093 Accounts payable 15,031 33,819 11,523 27,485 2,653 2,928 3,314 8,063 10,581 3,716 4,393 123,506 Accrued costs 548,187 256,488 56,262 101,394 3,311 7,225 1,189 67,458 104,688 6,048 16,563 1,168,813 Due to other funds - - - - - - - - - - - -

Total liabilities 4,494,434 2,476,744 679,415 1,212,345 40,569 85,022 16,468 783,839 1,221,746 71,377 194,453 11,276,412

Net position restricted for pension benefits 1,049,831,229$ 501,068,264 84,847,991 149,893,118 4,873,337 10,379,168 1,697,595 97,798,823 152,800,647 8,603,082 24,167,327 2,085,960,581

143

Exhibit E-4 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Changes in Fiduciary Plan Net Position Pension Trust Funds

For the year ended June 30, 2019

Comprehensive Pension Plans Supplemental Pension Plans Fire Deputy Correctional Deputy Correctional Crossing General Fire Police

Police Service Sheriff's Officers' Sheriff's Officers' Guards AFSCME Schedule Civilian Civilian Total Additions:

Contributions: Employer 66,547,832$ 46,681,453 7,716,382 10,207,504 849,800 369,383 88,146 3,319,479 8,172,803 430,406 935,069 $ 145,318,257 Employee 10,459,889 6,088,635 2,057,673 3,772,277 13,333 49,800 69,299 730,736 3,679,406 167,255 759,055 27,847,358 Total contributions 77,007,721 52,770,088 9,774,055 13,979,781 863,133 419,183 157,445 4,050,215 11,852,209 597,661 1,694,124 173,165,615

Transfers from (to) other funds - - - - - - - - - - - -

Net depreciation in fair value of assets 31,543,871 14,507,616 3,213,307 5,760,224 186,818 406,624 66,370 3,811,841 5,927,428 338,649 935,256 66,698,004 Interest and dividends 26,592,800 12,836,137 1,433,519 2,544,836 82,647 180,492 29,799 1,682,687 2,610,899 151,269 414,883 48,559,968 Total investment income 58,136,671 27,343,753 4,646,826 8,305,060 269,465 587,116 96,169 5,494,528 8,538,327 489,918 1,350,139 115,257,972 Less investment expense 2,879,463 1,388,209 270,554 487,577 15,925 34,768 5,736 324,608 504,913 29,126 79,767 6,020,646 Net investment income 55,257,208 25,955,544 4,376,272 7,817,483 253,540 552,348 90,433 5,169,920 8,033,414 460,792 1,270,372 109,237,326

Total additions 132,264,929 78,725,632 14,150,327 21,797,264 1,116,673 971,531 247,878 9,220,135 19,885,623 1,058,453 2,964,496 282,402,941

Deductions: Benefits 92,598,549 48,494,159 7,497,665 12,179,263 807,419 622,531 180,987 5,011,748 11,888,786 809,554 1,867,763 181,958,424 Refunds of contributions 5,878,321 2,075,719 150,885 838,945 63,172 16,691 14,544 157,915 824,139 60,076 78,199 10,158,606 General and administrative expenses 724,567 678,495 216,512 286,679 50,454 47,395 35,305 136,940 152,094 80,220 83,667 2,492,328

Total deductions 99,201,437 51,248,373 7,865,062 13,304,887 921,045 686,617 230,836 5,306,603 12,865,019 949,850 2,029,629 194,609,358

Net increase (decrease) 33,063,492 27,477,259 6,285,265 8,492,377 195,628 284,914 17,042 3,913,532 7,020,604 108,603 934,867 87,793,583 Net position restricted for pension benefits,

beginning of year 1,016,767,737 473,591,005 78,562,726 141,400,741 4,677,709 10,094,254 1,680,553 93,885,291 145,780,043 8,494,479 23,232,460 1,998,166,998

Net position restricted for pension benefits, end of year 1,049,831,229$ 501,068,264 84,847,991 149,893,118 4,873,337 10,379,168 1,697,595 97,798,823 152,800,647 8,603,082 24,167,327 $ 2,085,960,581

144

Exhibit E-5

PRINCE GEORGE'S COUNTY, MARYLAND

Agency Funds - Primary Government

Combining Statement of Changes in Assets and Liabilities

For the year ended June 30, 2019

Balance Balance

July 1, 2018 Additions Deductions June 30, 2019

State of Maryland property taxes:

Assets:

Cash and investments $ 492 94,924,181 (94,923,692) 981

Taxes receivable 773,222 102,756,006 (102,785,082) 744,146

Total assets 773,714 197,680,187 (197,708,774) 745,127

Liabilities:

Due to State of Maryland 773,714 103,682,870 (103,711,457) 745,127

Total Liabilities $ 773,714 103,682,870 (103,711,457) 745,127

M-NCPPC property taxes:

Assets:

Cash and investments $ 163,877 281,279,284 (280,640,010) 803,151

Taxes receivable 3,477,325 281,362,729 (280,943,957) 3,896,097 Total assets $ 3,641,202 562,642,013 (561,583,967) 4,699,248

Liabilities:

Due to M-NCPPC $ 3,641,202 285,788,302 (284,730,256) 4,699,248

Total liabilities $ 3,641,202 285,788,302 (284,730,256) 4,699,248

Washington Suburban Sanitary Commission charges:

Assets:

Cash and investments $ 3,298 9,202,409 (9,201,595) 4,112

Taxes receivable 232,137 9,187,571 (9,182,146) 237,562

Total assets $ 235,435 18,389,980 (18,383,741) 241,674

Liabilities:

Liability - due to Washington Suburban Sanitary Commission $ 235,435 9,211,162 (9,204,923) 241,674

Total liabilities $ 235,435 9,211,162 (9,204,923) 241,674

Incorporated towns property taxes:

Assets:

Cash and investments $ 40,447 132,240,381 (132,280,070) 758

Taxes receivable 537,957 132,661,334 (132,634,609) 564,682

Total assets $ 578,404 264,901,715 (264,914,679) 565,440

Liabilities:

Due to towns 578,404 136,026,433 (136,039,397) 565,440

Total liabilities $ 578,404 136,026,433 (136,039,397) 565,440

Washington Suburban Transit Commission taxes:

Assets:

Cash and investments $ 25,960,044 49,136,199 (39,100,873) 35,995,370

Taxes receivable 334,253 25,928,263 (25,889,937) 372,579

Total assets $ 26,294,297 75,064,462 (64,990,810) 36,367,949

Total assets

Liabilities:

Due to Washington Suburban Transit Commission $ 26,294,297 43,323,027 (33,249,375) 36,367,949

Total liabilities $ 26,294,297 43,323,027 (33,249,375) 36,367,949

(Continued)145

Exhibit E-5, Cont.

PRINCE GEORGE'S COUNTY, MARYLAND

Agency Funds - Primary Government

Combining Statement of Changes in Assets and Liabilities, Continued

For the year ended June 30, 2019

Balance Balance

July 1, 2018 Additions Deductions June 30, 2019

Special taxes:

Assets:

Cash and investments $ 1,920,534 44,939,631 (44,950,289) 1,909,876

Taxes Receivable 1,941,335 48,346,477 (48,254,042) 2,033,770

Total assets $ 3,861,869 93,286,108 (93,204,331) 3,943,646

Liabilities:

Due to other participants $ 3,861,869 48,346,477 (48,264,700) 3,943,646

Total liabilities $ 3,861,869 48,346,477 (48,264,700) 3,943,646

Agricultural transfer taxes:

Assets:

Cash and investments $ 192,811 44,015 (12,500) 224,326

Total assets $ 192,811 44,015 (12,500) 224,326

Liabilities:

Due to other governmental units $ 192,811 44,015 (12,500) 224,326

$ 192,811 44,015 (12,500) 224,326 Total liabilities

Inmate Holding Account: Assets:

Cash and investments $ 191,533 908,140 (903,378) 196,295

Total assets $ 191,533 908,140 (903,378) 196,295

Liabilities:

Accounts payable $ 136,609 939,700 (946,517) 129,792

Due to participants 54,924 908,140 (896,561) 66,503

Total liabilities $ 191,533 1,847,840 (1,843,078) 196,295

Totals

Assets:

Cash and investments $ 28,473,036 612,674,240 (602,012,407) 39,134,869

Taxes receivable 7,296,229 600,242,380 (599,689,773) 7,848,836

Total assets $ 35,769,265 1,212,916,620 (1,201,702,180) 46,983,705

Liabilities:

Accounts payable $ 136,609 939,700 (946,517) 129,792

Due to other governmental units 31,715,863 578,075,809 (566,947,908) 42,843,764

Due to participants 3,916,793 49,254,617 (49,161,261) 4,010,149

Total liabilities $ 35,769,265 628,270,126 (617,055,686) 46,983,705

146

Exhibits F

NONMAJOR COMPONENT UNITS

Exhibit F-1 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Net Position Nonmajor Component Units

June 30, 2019

Industrial Revenue Development Housing Redevelopment

Prince George's Authority of Authority of Prince George's Prince George's Authority of Authority of Community Prince George's Prince George's County Memorial Community Prince George's Prince George's Television County County Library College County County Total

ASSETS

Current assets: Cash and investments $ 803,069 15,924,479 - 5,699,106 51,329,766 6,958,648 - 80,715,068 Receivables (net of allowances for uncollectibles)

Accounts 107,750 20,595,328 - 285,929 9,516,048 347,867 30,852,922 Notes - - - - - 405,900 405,900

Accrued interest receivable - - - 11,744 - - 11,744 Due from component units - 312,105 - - 7,497,098 7,809,203 Due from other governmental units - - - 706,550 1,956,265 505,138 3,167,953 Inventories - - - 367 140,539 - - 140,906 Prepaid costs and deposits 17,257 111,649 - 576,483 1,876,651 429,074 711 3,011,825

Total current assets 928,076 36,943,561 - 7,268,435 64,831,013 8,240,727 7,903,709 126,115,521

Restricted assets: Cash and investments - 5,794,726 - - 8,091,442 2,610,409 4,723,910 21,220,487 Land held for transfer and other - - - - - 2,651,832 12,573,665 15,225,497

Total restricted assets - 5,794,726 - - 8,091,442 5,262,241 17,297,575 36,445,984

Noncurrent assets: Land - 31,105,978 - - 3,184,932 1,116,278 50,596,759 86,003,947 Construction in progress - 3,597,096 - 80,042,916 489,028 17,760,345 101,889,385 Buildings and improvements - - - - 239,764,923 31,036,809 - 270,801,732

Accumulated depreciation - - - - (76,066,446) (21,991,163) - (98,057,609) Improvements other than buildings 15,781 14,395,112 - - - - - 14,410,893

Accumulated depreciation (15,781) (13,054,875) - - - - - (13,070,656) Equipment 190,401 3,103,990 - 13,822,499 44,816,162 1,975,436 26,578 63,935,066

Accumulated depreciation (146,202) (2,117,052) - (9,499,564) (38,175,562) (1,517,729) (5,980) (51,462,089) Other noncurrent Assets - 29,312,759 - - - 1,049,237 - 30,361,996

Total noncurrent assets 44,199 66,343,008 - 4,322,935 253,566,925 12,157,896 68,377,702 404,812,665

Total assets $ 972,275 109,081,295 - 11,591,370 326,489,380 25,660,864 93,578,986 567,374,170

DEFERRED OUTFLOW OF RESOURCES

Pension/OPEB deferrals - - - 2,827,211 1,066,531 3,249,676 - 7,143,418 Deferred charge on refunding - - - - - - - -

Total deferred outflow of resources - - - 2,827,211 1,066,531 3,249,676 - 7,143,418

(Continued)

Infrastructure and Development Education Community Development

147

Exhibit F-1, Cont. PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Net Position Nonmajor Component Units

June 30, 2019

Industrial Revenue Development Housing Redevelopment

Prince George's Authority of Authority of Prince George's Prince George's Authority of Authority of Community Prince George's Prince George's County Memorial Community Prince George's Prince George's Television County County Library College County County Total

LIABILITIES

Current liabilities: Accounts payable $ 10,392 1,685,442 - 632,082 14,238,113 1,344,449 1,916,640 19,827,118 Salaries and benefits payable - - - - Accrued liabilities 58,106 - - 449,273 - 32,338 - 539,717 Accrued interest payable - - - - - - - Due to primary government 450,000 310,329 - 136,351 - 6,018,453 - 6,915,133 Due to other governmental units - 457,903 - - - 61,136 - 519,039 Unearned revenue 681,655 - 171,669 1,537,433 71,935 1,976,116 4,438,808 Matured bonds and interest payable - 889,492 - - - - - 889,492 Deposits - 5,899 - - - 133,674 311,750 451,323 Current portion of bonded debt - 2,330,000 - - - 95,000 - 2,425,000 Current portion of capital lease obligations - 324,404 - - 15,963 - 5,094 345,461 Current portion of compensated absences and termination benefits payable - - - 3,578 248,090 23,506 - 275,174

Total current liabilities 518,498 6,685,124 - 1,392,953 16,039,599 7,780,491 4,209,600 36,626,265

Noncurrent liabilities: Bonded debt, less current portion - 55,500,000 - - - 922,066 - 56,422,066 Unamortized premium (discount) - 1,869,008 - - - - - 1,869,008 Capital lease obligations, less current portion - 302,910 - - 35,448 - 16,041 354,399 Compensated absences and termination benefits payable, less current portion - - - 1,863,440 2,919,895 446,587 - 5,229,922 Notes payable, less current portion - - - - - - 3,941,147 3,941,147 Net pension liability - - - 2,544,950 3,658,541 2,297,345 - 8,500,836 Net OPEB obligation - - - 28,730,821 84,830,000 11,308,000 - 124,868,821

Total noncurrent liabilities - 57,671,918 - 33,139,211 91,443,884 14,973,998 3,957,188 201,186,199 22,754,489

Total liabilities 518,498 64,357,042 - 34,532,164 107,483,483 22,754,489 8,166,788 237,812,464

DEFERRED INFLOW OF RESOURCES Pension/OPEB Deferrals - - - 4,214,568 1,046,132 1,401,834 - 6,662,534

Total deferred Inflow of resources - - - 4,214,568 1,046,132 1,401,834 - 6,662,534

NET POSITION

Net investment in capital assets - 11,932,953 - 4,322,935 253,515,514 10,695,742 64,955,916 345,423,060 Restricted 7,878 4,232,137 - 13,295,160 1,943,539 11,685,268 31,163,982 Unrestricted (deficit) 445,899 28,559,163 - (28,651,086) (47,784,378) (7,885,064) 8,771,014 (46,544,452)

Total net position (deficit) $ 453,777 44,724,253 - (24,328,151) 219,026,296 4,754,217 85,412,198 330,042,590

Infrastructure and Development Education Community Development

148

Exhibit F-2 PRINCE GEORGE'S COUNTY, MARYLAND

Combining Statement of Activities Nonmajor Component Units

For the year ended June 30, 2019

Industrial Revenue Development Housing Redevelopment

Operating Capital Prince George's Authority of Authority of Prince George's Prince George's Authority of Authority of Charges for Grants and Grants and Community Prince George's Prince George's County Memorial Community Prince George's Prince George's

Programs / Functions Expenses Services Contributions Contributions Television County County Library College County County Total

Component Units: Infrastructure and Development

PGCT $ 1,733,783 429,486 - (1,304,297) - - - - - - (1,304,297) Revenue Authority 19,775,784 18,265,137 660,000 250,126 - (600,521) - - - - - (600,521) IDA 5,319,054 86 - - - - (5,318,968) - - - - (5,318,968)

Education Library 38,895,725 930,523 372,510 3,024,058 - - - (34,568,634) - - - (34,568,634) PGCC 146,662,186 26,845,027 11,986,422 - - - - - (107,830,737) - - (107,830,737)

Community Development Housing Authority 94,836,425 2,567,701 90,058,719 529,853 - - - - - (1,680,152) - (1,680,152) Redevelopment Authority 3,011,512 430,970 3,130,389 18,309,764 - - - - - - 18,859,611 18,859,611 Total component units $ 310,234,469 49,468,930 106,208,040 22,113,801 (1,304,297) (600,521) (5,318,968) (34,568,634) (107,830,737) (1,680,152) 18,859,611 (132,443,698)

General revenues: Other grants and contributions 1,325,055 1,209,083 - 31,863,232 113,553,126 - 147,950,496 Investment income 1,319 267,084 7 688 904,867 30,509 2,520 1,206,994 Miscellaneous - 1,272,893 - 221,618 967,541 1,093,776 - 3,555,828 Total general revenues 1,326,374 2,749,060 7 32,085,538 115,425,534 1,124,285 2,520 152,713,318 Change in net assets 22,077 2,148,539 (5,318,961) (2,483,096) 7,594,797 (555,867) 18,862,131 20,269,620

Net position - beginning of year 431,700 42,575,714 5,318,961 (21,845,055) 213,575,199 5,310,084 66,550,067 311,916,670 Prior period adjustment - - - - (2,143,700) - - (2,143,700) Net position - end of year $ 453,777 44,724,253 - (24,328,151) 219,026,296 4,754,217 85,412,198 330,042,590

Program Revenues Net (Expense) Revenue and Changes in Net Assets

Infrastructure and Development Education Community Development

149

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150

Exhibits G

CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

PRINCE GEORGE'S COUNTY, MARYLAND Exhibit G-1 Schedule of Capital Assets Used in the Operation of Governmental Funds -

By Function and Activity (1) June 30, 2019

Function and activity Total Land Buildings Infrastructure Equipment Vehicles Primary government: General government:

Control - legislative, executive and judicial 407,604,317$ 23,547,757 383,786,136 - 67,068 203,356 Staff agencies: - Finance 29,550 - - - 29,550 - Personnel 52,140 - - - 52,140 - Central services 72,279,081 - - 69,924,964 394,334 1,959,783 Law 36,900 - 36,900 General government buildings 73,412,332 12,667,199 60,745,133 - - - Other 39,737,225 - - - 9,297 39,727,928

Total staff agencies 185,547,228 12,667,199 60,745,133 69,924,964 485,321 41,724,611 Total general government 593,151,545 36,214,956 444,531,269 69,924,964 552,389 41,927,967

Public safety: State's Attorney 502,634 - - - 27,435 475,199 Police services 85,210,694 2,124,313 47,015,727 - 6,969,757 29,100,897 Fire services 110,218,573 5,979,918 56,239,667 - 11,352,809 36,646,179 Sheriff services 6,063,684 - 32,684 - 409,715 5,621,285 Corrections 112,599,199 1,953,617 109,858,606 - 45,219 741,757 Homeland Security 53,757,780 - - 48,952,026 1,837,435 2,968,319

Total public safety 368,352,564 10,057,848 213,146,684 48,952,026 20,642,370 75,553,636

Environmental Environmental resources 15,899,580 604,804 14,256,906 - 6,055 1,031,815

Health and human services Health 20,067,858 3,178,333 15,176,754 - 410,397 1,302,374

Total health and human Services 20,067,858 3,178,333 15,176,754 - 410,397 1,302,374

Infrastructure and Development Public works 3,082,474,593 55,744,055 22,376,559 2,942,246,342 156,684 61,950,953

Federal programs 19,383,260 2,856,588 2,540,519 - 9,207,332 4,778,821

Total governmental fund capital assets allocated 4,099,329,400 108,656,584 712,028,691 3,061,123,332 30,975,227 186,545,566 Construction-in-progress 177,197,276

Total primary government 4,276,526,676$

(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.

151

Exhibit G-2

Deductions Net Balance and Inter-agency Balance

July 1, 2018 Additions adjustments transfers June 30, 2019 Primary government: General government:

Control, legislative, executive and judicial 401,728,426$ 5,901,904 (26,014) - 407,604,316 Staff agencies: Finance 29,550 - - - 29,550 Personnel 52,140 - - - 52,140 Central services 62,389,805 9,916,920 (27,641) - 72,279,084 General government buildings 73,412,332 - - - 73,412,332 Other 44,772,172 21,788 (5,019,836) - 39,774,124

Total staff agencies 180,655,999 9,938,708 (5,047,477) - 185,547,230 Total general government 582,384,425 15,840,612 (5,073,491) - 593,151,546

Public safety: State's attorney 387,998 114,636 - - 502,634 Police services 78,872,071 6,678,719 (340,097) - 85,210,693 Fire services 107,778,034 3,105,202 (664,663) - 110,218,573 Sheriff services 4,246,928 1,872,303 (55,547) - 6,063,684 Corrections 112,350,507 248,692 - - 112,599,199 Homeland Security 53,738,496 66,491 (47,206) - 53,757,781

Total public safety 357,374,034 12,086,043 (1,107,513) - 368,352,564

Environmental 15,557,546 369,020 (26,986) - 15,899,580 Health and human services

Health 16,841,026 3,384,681 (157,849) - 20,067,858 Infrastructure and Development

Public works and transportation 3,029,904,236 55,160,906 (2,590,549) - 3,082,474,593 Federal programs 18,364,092 1,019,167 - - 19,383,259 Construction-in-progress 125,380,852 84,710,889 (32,894,465) - 177,197,276

Total governmental fund capital assets 4,145,806,211$ 172,571,318 (41,850,853) - 4,276,526,676

For the year ended June 30, 2019 By Function and Activity (1)

(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.

PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Changes in Capital Assets Used in the Operation of Governmental Funds -

152

Exhibit G-3 PRINCE GEORGE'S COUNTY, MARYLAND

Schedule of Capital Assets Used in the Operation of Governmental Funds - By Source

June 30, 2019

Primary Government

Governmental fund capital assets Land 108,656,583$ Buildings 712,028,689 Infrastructure 3,061,123,334 Equipment 217,520,794 Construction in progress 177,197,276

Total governmental fund capital assets 4,276,526,676$

Investment in governmental fund capital assets from: Capital projects funds: General obligation bonds 129,563,003$ Intergovernmental 5,694,961 General fund revenue 4,061,604,212 Special revenue fund revenue 18,341,928 Federal programs 19,383,259 Other 41,939,313

4,276,526,676$

(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.

153

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154

Demographic and Economic Information - Demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place.

Operating Information - Service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs.

The Statistical Section provides detailed information for the primary government, as a context for understanding what the information in the comprehensive annual financial report says about the overall financial health of the County in the following areas:

STATISTICAL SECTION (UNAUDITED)

Financial Trends - Information to help the reader understand how the County's financial performance and well-being have changed over time.

Revenue Capacity - Information to help the reader assess the County's most significant local revenue source, the property tax.

Debt Capacity - Information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future.

Table 1

Restated (2) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Governmental activities: Net investment in capital assets 1,475,449,993$ 1,466,248,839$ 1,621,314,368$ 1,499,391,740$ 1,487,561,224$ 1,615,022,591$ 1,522,174,313$ 1,659,749,133$ 1,266,261,664$ 1,201,344,368$ Restricted 351,254,119 361,876,157 349,076,708 341,015,595 309,177,376 304,406,663 282,142,696 199,109,417 258,412,302 304,597,633 Unrestricted (deficit) (2) (558,755,424) (562,309,599) (624,691,441) (705,176,214) (954,659,608) (2,448,779,934) (2,448,831,547) (2,874,527,010) (3,665,301,952) (3,831,777,348) Total governmental activities net position 1,267,948,688 1,265,815,397 1,345,699,635 1,135,231,121 842,078,993 (529,350,680) (644,514,538) (1,015,668,460) (2,140,627,985) (2,325,835,347)

Business-type activities: Net investment in capital assets 156,560,233 148,934,828 143,858,665 107,572,137 142,374,427 139,610,243 150,378,944 211,704,766 138,996,781 160,096,694 Restricted 20,916,015 19,500,275 18,481,818 19,212,114 28,976,024 47,598,939 71,280,452 71,977,865 82,324,704 106,300,524 Unrestricted (deficit) 40,427,579 56,189,966 59,916,152 94,141,653 50,603,289 21,023,001 (6,438,259) (71,388,420) (46,608,719) (80,630,369) Total business-type activities net position 217,903,827 224,625,069 222,256,635 220,925,904 221,953,740 208,232,183 215,221,137 212,294,211 174,712,766 185,766,849

Primary government: Net investment in capital assets 1,632,010,226 1,615,183,667 1,765,173,033 1,606,963,877 1,629,935,651 1,754,632,834 1,672,553,257 1,871,453,899 1,405,258,445 1,361,441,062 Restricted 372,170,134 381,376,432 367,558,526 360,227,709 338,153,400 352,005,602 353,423,148 271,087,282 340,737,006 410,898,157 Unrestricted (deficit) (1) (518,327,845) (506,119,633) (564,775,289) (611,034,561) (904,056,319) (2,427,756,933) (2,455,269,806) (2,945,915,430) (3,711,910,671) (3,912,407,717) Total primary government net position 1,485,852,515$ 1,490,440,466$ 1,567,956,270$ 1,356,157,025$ 1,064,032,733$ (321,118,497)$ (429,293,401)$ (803,374,249)$ (1,965,915,219)$ (2,140,068,498)$

Notes:

Unrestricted (deficit) net assets noted above (518,327,845) (506,119,633) (564,775,289) (611,034,561) (904,056,319) (2,427,756,933) (2,455,269,806) (2,945,915,430) (3,711,910,671) (3,912,407,717) Debt issued for capital on behalf of others 435,418,383 399,196,957 445,921,535 483,621,901 486,417,276 483,674,784 503,035,085 454,176,281 641,070,012 643,320,938 County net assets absent effect of this relationship (82,909,462)$ (106,922,676)$ (118,853,754)$ (127,412,660)$ (417,639,043)$ (1,944,082,149)$ (1,952,234,721)$ (2,491,739,149)$ (3,070,840,659)$ (3,269,086,779)$

(2) Fiscal Year 2012 amounts restated due to implementation of GASB 65.

(1) The County's governmental activities has an unrestricted deficit because the County issues debt to fund construction costs for two of its component units. Prior to 2008, absent the effect of this relationship, the County would have reported positive assets for its governmental activities and for government-wide purposes. Government-wide unrestricted net position would have been:

PRINCE GEORGE'S COUNTY, MARYLAND Net Position By Component

Last Ten Fiscal Years

155

Table 2

2010 2011 2012 (restated) 2013 2014 2015 2016 2017 2018 2019

Expenses Governmental activities:

General government (1) 293,993,880$ 278,735,961$ 335,347,065$ 402,876,040$ 413,676,920$ 322,214,792$ 374,611,539$ 363,670,444$ 401,386,498$ 433,846,810$ Public safety (2) 510,354,496 543,688,542 551,296,748 600,225,256 626,789,316 678,934,030 695,921,598 736,127,867 744,140,675 820,674,177 Environmental (3) - - - - 4,432,568.00 5,560,232 4,136,436 5,053,254 6,548,191 5,864,560 Health and Human Services (4) 104,844,923 98,491,351 95,750,683 97,589,420 97,846,141 99,155,575 96,398,021 97,028,095 93,623,603 94,868,581 Infrastructure and Development (5) 73,726,841 86,362,933 55,761,006 91,413,306 104,325,736 107,710,388 115,700,759 138,751,700 150,348,240 132,006,323 Board of Education 684,470,305 656,525,606 649,326,640 715,792,239 716,497,118 684,661,903 742,360,976 806,245,925 822,710,513 834,762,391 Community College 33,644,625 40,125,724 31,862,246 31,383,689 30,767,855 35,644,365 36,129,002 77,580,269 65,068,851 49,881,662 Memorial Library 19,802,615 19,494,605 27,027,089 23,313,523 21,490,903 23,326,087 20,471,180 24,450,003 20,798,822 24,614,954 Interest on long-term debt 49,295,577 51,136,299 47,505,779 46,733,055 57,748,877 58,988,913 56,147,749 55,141,905 64,083,718 83,961,246

Total governmental activities expenses 1,770,133,262 1,774,561,021 1,793,877,256 2,009,326,528 2,073,575,434 2,016,196,285 2,141,877,260 2,304,049,462 2,368,709,111 2,480,480,704 Business-type activities:

Solid Waste 87,486,790 95,955,265 98,663,436 95,739,816 95,482,526 91,898,001 94,062,499 114,620,132 97,291,974 98,470,710 Stormwater 48,297,374 42,103,279 42,169,443 43,080,734 52,371,683 54,402,786 55,216,649 51,399,872 52,429,982 54,508,019 Watershed Protection 316,175 1,134,078 1,164,724 2,248,552 4,678,746 8,651,671

Total business-type activities expenses 135,784,164 138,058,544 140,832,879 138,820,550 148,170,384 147,434,865 150,443,872 168,268,556 154,400,702 161,630,400 Total primary government expenses 1,905,917,426$ 1,912,619,565$ 1,934,710,135$ 2,148,147,078$ 2,221,745,818$ 2,163,631,150$ 2,292,321,132$ 2,472,318,018$ 2,523,109,813$ 2,642,111,104$

Program Revenues Governmental activities:

Charges for Services : General government (1) 60,275,045$ 55,529,493$ 87,727,105$ 94,431,227$ 83,203,693$ 79,730,348$ 88,751,746$ 90,201,920$ 113,380,065$ 121,412,340$ Public safety (2) 38,398,284 41,420,265 52,677,652 56,363,172 37,430,678 44,390,006 48,168,338 49,748,474 52,747,395 54,257,301 Environmental (3) - - - - 287,158.00 313,784 325,470 450,345 497,067 583,987 Health and Human Services (4) 9,278,928 10,430,145 12,369,621 10,299,291 7,075,381 4,508,261 4,436,424 6,361,895 6,298,652 6,544,965 Infrastructure and Development (5) 57,097,256 29,476,879 130,701,054 33,769,227 56,250,140 49,411,650 90,962,207 71,376,976 92,999,782 78,709,711

Operating grants and contributions: General government (1) 56,606,758 57,182,264 26,281,362 25,222,907 12,192,715 24,419,173 22,137,203 21,593,271 21,068,662 22,053,990 Public safety (2) 29,537,332 28,884,685 32,508,021 26,524,768 24,989,052 18,335,079 22,761,497 25,765,885 23,140,053 26,590,129 Environmental (3) 230,114 567,867 84,423 885,281 655,611 554,285 Health and Human Services (4) 65,178,448 71,886,283 68,530,281 67,629,045 69,120,126 79,342,253 73,622,970 74,068,373 61,129,323 58,461,891 Infrastructure and Development (5) 2,233,204 4,513,987 8,581,718 2,917,851 13,478,641 22,955,481 21,182,326 11,154,653 10,738,996 6,172,284

Capital grants and contributions: General government (1) 36,514,825 7,466,894 2,949,658 198,425 1,775,255 6,235,669 3,813,609 860,962 - - Public safety (2) 4,881,000 8,519,103 3,696,298 4,896,876 2,747,572 8,056,602 684,709 1,504,442 1,229,240 1,323,680 Environmental (3) 211,498 257,127 50,715 - 1,225,202 346,586 Health and Human Services (4) 117,954 351,545 - 169,076 22,000 180,474 54,589 - 108,511 43,372 Infrastructure and Development (5) 7,887,841 18,914,344 7,186,862 10,076,015 13,572,964 687,926 8,977,424 1,509,878 3,164,317 4,081,537

Total governmental activities program revenues 368,006,875 334,575,887 433,209,632 332,497,880 322,586,987 339,391,700 386,013,650 355,482,355 388,382,876 381,136,058

continued

PRINCE GEORGE'S COUNTY, MARYLAND Change In Net Position Last Ten Fiscal Years

The County revised its functional categories for governmental activity expenses in fiscal year 2014. The following represents changes to expenses categories from 2005-2013. (1) General Government- no longer includes States Attorney, Soil Conservation, Department of Family Services, and Department of Housing and Community Development. (2) Public safety added State's Attorney and dropped Department of the Environment. (3) Environment added Department of the Environmental and Soil Conservation. (4) Health and Human Services (Health and Public Welfare - Department of Social Services) merged categories with the Department of Family Services. (5) Infrastructure added the new Department of Permitting, Inspections, and Enforcement and Department of Housing and Community Development to the existing Public Works (Department of Public Works and

156

Table 2, continued

2010 2011 2012 (restated) 2013 2014 2015 2016 2017 2018 2019

Program Revenues, continued Business-type activities:

Charges for services: Solid waste 90,575,778 90,451,449 89,987,217 91,459,801 90,893,287 92,113,510 95,380,258 97,111,766 98,274,930 97,269,665 Stormwater 3,369,309 2,150,063 1,829,457 2,811,579 3,677,700 3,332,530 3,803,795 8,029,372 5,789,857 5,590,995 Watershed Protection 14,199,502 14,741,320 14,710,922 14,678,046 14,649,897 14,700,665

Capital grants and contributions Stormwater 1,432,137 1,627,916 1,064,605 2,005,401 1,262,405 92,153 2,555,148 135,823 18,546 -

Total business-type activities program revenues 95,377,224 94,229,428 92,881,279 96,276,781 110,032,894 110,279,513 116,450,123 119,955,007 118,733,230 117,561,325 Total primary government program revenues 429,953,111$ 527,439,060$ 425,379,159$ 418,863,768$ 449,424,594$ 449,671,213$ 502,463,773$ 475,437,362$ 507,116,106$ 498,697,383$

Net (Expense)/Revenue Governmental activities (1,439,985,134) (1,360,667,624) (1,676,828,648) (1,750,988,447) (1,676,804,585) (1,676,804,585) (1,755,863,610) (1,948,567,107) (1,980,326,235) (2,099,344,646) Business-type activities (42,681,320) (46,603,451) (45,939,271) (51,893,603) (37,401,971) (37,155,352) (33,993,749) (48,313,549) (35,667,472) (44,069,075) Total primary government net expense (1,482,666,454)$ (1,407,271,075)$ (1,722,767,919)$ (1,802,882,050)$ (1,714,206,556)$ (1,713,959,937)$ (1,789,857,359)$ (1,996,880,656)$ (2,015,993,707)$ (2,143,413,721)$

General Revenues and Other Changes in Net Position Governmental activities

Taxes Property taxes 732,832,234$ 733,197,993$ 722,138,728$ 707,228,408$ 709,669,105$ 720,937,819$ 779,978,896$ 827,354,415$ 864,162,789$ 896,548,210$ Income taxes 440,257,032 480,489,026 504,817,831 529,764,061 513,350,683 549,887,248 575,334,071 593,750,012 598,697,158 683,737,622 Transfer and recordation taxes 95,796,346 90,645,343 85,069,002 100,116,901 104,407,509 117,209,045 152,241,144 159,972,580 195,358,499 169,002,879 Energy taxes 71,280,769 63,880,450 59,651,917 56,588,560 55,240,457 66,785,516 66,394,765 71,865,024 76,969,462 83,870,176 Telecommunications tax 44,357,561 41,982,171 37,827,000 36,926,752 33,914,325 33,645,771 33,733,670 31,746,691 26,858,188 23,671,150 Unrestricted State shared tax 1,334,216 1,334,399 2,064,874 2,613,510 2,701,111 2,867,440 2,970,706 3,107,973 3,023,188 2,998,300 Other taxes 21,402,102 20,494,339 19,664,177 21,988,466 21,666,726 22,065,496 26,092,859 28,470,988 31,235,520 31,977,644

Investment earnings 9,101,595 3,122,028 3,698,357 (2,115,280) 2,944,473 4,460,524 2,884,002 2,968,323 4,770,329 19,421,223 Grants and contributions 1,970,627 1,865,679 3,212,453 11,822,540 13,355,751 862,813 549,897 486,635 5,495,014 2,148,678 Miscellaneous 1,492,071 840,412 5,197,518 1,426,216 586,179 462,854 519,742 2,925,716 1,114,860 761,402

Total governmental activities 1,419,824,553 1,437,851,840 1,443,341,857 1,466,360,134 1,457,836,319 1,519,184,526 1,640,699,752 1,722,648,357 1,807,685,007 1,914,137,284 Business-type activities:

Property taxes 49,419,329 47,579,296 43,625,750 39,629,544 37,999,606 38,090,056 39,550,173 42,775,442 45,227,776 47,593,925 Investment earnings 3,953,359 2,971,062 2,333,788 1,583,464 1,165,720 1,382,411 1,432,530 2,611,181 5,812,352 7,529,233 Total business-type activities 53,372,688 50,550,358 45,959,538 41,213,008 39,165,326 39,472,467 40,982,703 45,386,623 51,040,128 55,123,158 Total primary government 1,473,197,241$ 1,488,402,198$ 1,489,301,395$ 1,507,573,142$ 1,497,001,645$ 1,558,656,993$ 1,681,682,455$ 1,768,034,980$ 1,858,725,135$ 1,969,260,442$

Governmental activities Extraordinary items Asset impairment / insurance recovery (1) - - - - - - - - - - Special items

Legal Recovery 10,700,000 - - - - - - - - -

Business-type activities: Special items

Gain on capital asset due to change in estimat 3,342,786 - - - - - - - - -

Change in Net Position Governmental activities (9,460,581) 77,184,216 (233,486,791) (284,628,313) (218,968,266) (157,620,059) (115,163,858) (225,918,750) (172,641,228) (185,207,362) Business- type activities 14,034,154 3,946,907 20,267 (10,680,595) 1,763,355 2,317,115 6,988,954 (2,926,926) 15,372,656 11,054,083 Total primary government 4,573,573$ 81,131,123$ (233,466,524)$ (295,308,908)$ (217,204,911)$ (155,302,944)$ (108,174,904)$ (228,845,676)$ (157,268,572)$ (174,153,279)$

Notes: (1) Relates to impairment loss, net of insurance recoveries from Courthouse fire 11/03/2004. (2) Fiscal Year 2012 amounts restated due to implementation of GASB 65.

Last Ten Fiscal Years

PRINCE GEORGE'S COUNTY, MARYLAND Change In Net Position, continued

157

Table 3

FISCAL YEAR 2010 2011(3) 2012 2013 2014 2015 2016 2017 2018 2019

General Fund: Reserved 144,338,502$ Unreserved 186,520,591 Nonspendable - 1,593,534$ 1,619,282$ 1,532,552$ 1,549,546$ 1,641,389$ 2,134,534$ 2,010,022$ 3,093,439$ 2,810,871$ Restricted - 144,187,959 164,668,289 156,735,799 160,797,750 170,778,503 161,051,114 185,338,448 175,190,627 208,475,941 Committed - 52,389,072 53,570,342 54,968,228 55,424,074 57,807,206 59,356,790 62,986,988 65,418,066 68,859,934 Assigned - 85,733,302 87,170,249 63,342,963 52,361,681 53,937,841 48,926,434 48,288,562 54,350,909 64,428,593 Unassigned - 94,256,531 76,659,622 82,782,432 30,953,395 34,028,162 116,418,173 167,450,824 229,965,917 235,564,370

Sub-total General Fund 278,224,363 330,859,093 378,160,398 359,361,974 301,086,446 318,193,101 387,887,045 466,074,844 528,018,958 580,139,709

All Other Governmental Funds: Reserved 147,214,598$ Unreserved:

Special revenue funds 14,585,859 Capital projects funds 6,600,247

Restricted - 145,408,266$ 140,131,186$ 315,273,781$ 99,653,204$ 130,699,334$ 73,443,535$ 38,763,609$ 274,875,628$ 392,869,570$ Committed - - 10,301,182.00 6,498,711 2,323,282 3,255,831 4,915,107 - 3,046,432 2,814,357 Assigned 5,481,651 6,525,555 6,357,576 6,264,232 3,277,611 3,677,951 4,075,470 3,953,466 3,687,527

Unassigned - - - - - - (249,039,120) - - Sub-total all other Governmental Funds 202,535,985$ 168,400,704$ 150,889,917$ 328,130,068$ 108,240,718$ 137,232,776$ 82,036,593$ (206,200,041)$ 281,875,526$ 399,371,454$

Total all Governmental Funds 480,760,348$ 499,259,797$ 529,050,315$ 687,492,042$ 409,327,164$ 455,425,877$ 469,923,638$ 259,874,803$ 809,894,484$ 979,511,163$

Notes:

(2) In November 2002, County voters approved a charter amendment to increase the contingency reserve requirement from 3% to 5% of General Fund estimated revenues. (3) Beginning in fiscal year 2011 the County implemented GASB Statement No. 54 which revised the fund balance categories for Governmental Funds.

(1) The County was required to maintain a contingency reserve equal to 3% of General Fund estimated revenues beginning in the fiscal year 1998. The reserve is intended to help stabilize County budgets against future economic fluctuations and unforeseen emergencies.

PRINCE GEORGE'S COUNTY, MARYLAND Fund Balances, Governmental Funds

Last Ten Fiscal Years

158

Table 4

FISCAL YEARS 2010 2011 2012 2013 (restated) 2014 2015 2016 2017 2018 2019

Revenues

Taxes 1,412,184,766$ 1,423,616,459$ 1,427,541,836$ 1,449,168,044$ 1,440,900,965$ 1,509,634,512$ 1,633,462,779$ 1,708,866,767$ 1,794,281,794$ 1,879,745,958$ Licenses and permits 17,471,856 18,577,036 18,127,287 22,710,061 21,830,867 25,430,085 37,734,749 47,933,335 60,672,230 65,006,686 Fines and forfeitures 4,351,788 5,877,508 13,459,810 19,684,818 19,885,245 14,964,293 15,239,542 15,213,987 15,394,169 13,446,487 Use and money and property 11,966,421 5,821,464 7,871,454 1,705,533 8,138,507 12,864,236 9,243,883 6,084,135 17,824,752 30,110,156 Charges for services 52,725,012 53,795,309 67,300,432 76,580,819 65,128,244 73,501,819 86,038,845 81,815,453 91,907,843 96,883,563 Intergovernmental 212,201,660 207,706,513 161,533,603 155,741,974 155,812,040 161,173,020 155,192,779 143,195,829 126,309,266 123,947,787 Miscellaneous 6,810,373 5,184,078 7,752,696 6,119,301 10,305,705 2,989,077 3,782,573 4,753,369 2,755,488 4,231,531

Total revenues 1,587,551,380 1,717,711,876 1,720,578,367 1,731,710,550 1,722,001,573 1,800,557,042 1,940,695,150 2,007,862,875 2,109,145,542 2,213,372,168

Expenditures

General Government (1) 195,276,748 214,101,638 229,901,474 229,989,658 264,913,081 197,409,489 196,167,715 214,966,757 367,002,894 352,236,375 Public safety (2) 509,526,761 535,858,802 543,037,453 577,535,728 615,372,626 635,615,369 652,773,699 671,113,128 712,817,487 758,788,361 Environmental (3) - - - 10,219,798 4,323,358 4,718,117 3,559,225 4,452,246 6,228,620 5,782,616 Health and Human Services (4) 103,841,312 98,190,664 95,249,039 98,493,348 95,977,561 97,388,090 95,240,267 96,470,157 93,602,232 95,053,168 Infrastructure & Development (5) 15,855,250 26,947,228 20,670,130 25,068,942 32,234,093 34,712,960 34,356,611 29,587,219 42,413,242 39,506,048 Capital projects 82,735,106 82,297,319 74,151,921 90,316,298 138,911,039 122,161,533 108,617,981 132,580,862 141,440,671 150,477,516 Education

Board of Education 684,470,305 656,525,606 649,326,640 715,792,239 716,497,118 684,661,903 742,360,976 845,979,025 822,710,513 834,762,391 Community College 33,644,625 40,125,724 31,862,246 31,383,689 30,767,855 35,644,365 36,129,002 82,573,869 65,068,851 49,881,662 Memorial Library 19,802,615 19,494,605 27,027,089 23,313,523 21,490,903 26,534,954 35,357,559 34,971,909 35,441,196 32,362,755

Debt service Interest 78,850,997 86,457,546 86,523,482 83,252,080 85,839,156 97,332,619 109,598,004 116,330,860 116,314,724 135,136,142 Principal 53,598,362 49,896,532 47,537,190 47,206,911 53,855,034 58,141,936 58,313,589 53,255,661 58,742,863 77,761,202

Total expenditures 1,755,357,160 1,777,602,081 1,809,895,664 1,932,572,214 2,060,181,824 1,994,321,335 2,072,474,628 2,282,281,693 2,461,783,293 2,531,748,236

Excess (deficiency) of revenues over (under) expenditures (59,890,205) (89,317,297) (101,699,546) (200,861,664) (338,180,251) (193,764,293) (131,779,478) (274,418,818) (352,637,751) (318,376,068)

Continued

PRINCE GEORGE'S COUNTY, MARYLAND Changes In Fund Balances, Governmental Funds

Last Ten Fiscal Years

The County revised its functional categories for expenditures in fiscal year 2014. Fiscal year 2013 expenditures are restated. The following represents changes to expenditures categories from 2005-2012. (1)General Government- no longer includes States Attorney, Soil Conservation, Department of Family Services, and Department of Housing and Community Development. (2) Public safety added State's Attorney and dropped Department of the Environment. (3) Environment added Department of the Environment and Soil Conservation. (4) Health and Human Services merged (Health and Public Welfare ( Department of Social Services) categories with the Department of Family Services. (5) Infrastructure added the new Department of Permitting, Inspections, and Enforcement and Department of Housing and Community Development to the existing Public Works(Department of Public Works and Transportation) Category.

159

Table 4, continued

FISCAL YEARS 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Other Financing Sources (Uses)

General obligation bonds issued 83,110,000 91,480,000 74,315,000 285,748,000 - 189,689,000 113,835,000 - 658,365,000 263,775,000 Bond and note premium 2,599,354 6,959,315 21,373,503 43,355,574 5,419,224 30,413,518 21,734,711 - 98,707,070 66,013,720 Capital lease financing - 27,781,000 33,825,000 16,055,642 54,596,149 19,612,680 10,161,624 32,105,240 41,604,000 39,684,027 Reallocation of notes payable - - - - - - - - 104,000,000 120,520,000 Transfers in - other funds 94,629,227 98,837,759 101,999,940 89,092,924 94,902,164 92,543,661 95,034,167 110,911,778 110,955,843 156,018,140 Debt Issued:

Bond proceeds - refunding - - 175,530,000 191,130,000 - 27,520,000 51,511,805 - 83,754,499 - Bond premium - refunding - - 36,132,555 20,981,662 - 2,234,722 7,990,279 - 14,470,731 - Payment to bond refunding escrow agent - - (221,094,720) (209,562,879) - (29,606,914) (58,956,180) - (97,687,568) -

Transfers out - other funds (101,948,927) (105,950,259) (108,786,340) (89,092,924) (94,902,164) (92,543,661) (95,034,167) (110,911,778) (111,512,143) (158,018,140) Other - - - - - - - - - -

Total other financing sources (uses) 78,389,654 119,107,815 113,294,938 347,707,999 60,015,373 239,863,006 146,277,239 32,105,240 902,657,432 487,992,747

Net change in fund balances 18,499,449$ 29,790,518$ 11,595,392$ 146,846,335$ (278,164,878)$ 46,098,713$ 14,497,761$ (195,676,978)$ 550,019,681$ 169,616,679$

Debt service as a percentage of noncapital expenditures (3) 7.7% 7.8% 7.7% 7.8% 7.8% 7.7% 8.8% 9.0% 8.0% 9.4%

Notes: (1) For FY01 and prior, includes amounts previously classified as "Transfers in from Component Units." (2) Relates to insurance recoveries from Courthouse fire November 3, 2004. (3) Non-capital expenditures represent total expenditures above, less Capital Project Funds and capital outlay expenditures that resulted in capital assets.

Changes In Fund Balances, Governmental Funds, continued Last Ten Fiscal Years

PRINCE GEORGE'S COUNTY, MARYLAND

160

Table 5

Real Property (1) Total Personal Property (2) Total Estimated Assessed Fiscal Year Direct Total Direct Actual Value as a

Ended Tax Unincorporated Public Incorporated Assessed Tax Taxable Percentage of June 30 Assessed Value Estimated Value Rate Personal Property Utilities Ordinary Business Value Rate Value (1) Actual Value

2010 96,054,707,346 102,512,190,089 0.8996 32,392,590 1,291,979,150 1,458,374,079 2,782,745,819 2.2724 105,294,935,908 85.55 2011 95,135,150,806 96,199,089,410 0.8998 48,907,200 1,334,149,600 1,366,211,620 2,749,268,420 2.0000 98,948,357,830 93.87 2012 82,964,524,929 83,404,281,380 0.9054 57,630,140 1,332,876,260 1,322,818,970 2,713,325,370 2.0000 86,117,606,750 98.92 2013 75,993,572,331 76,633,200,500 0.9028 50,405,620 1,364,625,200 1,789,642,154 3,204,672,974 2.2830 79,837,873,474 99.49 2014 73,425,415,435 74,563,618,491 0.8971 48,314,610 1,393,889,690 1,313,144,919 2,755,349,219 2.2684 77,318,967,710 99.20 2015 74,172,498,186 76,307,098,100 0.9019 48,442,950 1,485,591,490 1,371,592,328 2,905,626,768 2.2780 79,212,724,868 97.31 2016 76,751,695,412 80,392,825,800 0.9451 61,518,930 1,458,733,380 1,488,314,420 3,008,566,730 2.3720 83,401,392,530 95.63 2017 82,315,032,205 86,941,639,900 0.9364 63,432,820 1,499,376,630 1,645,609,250 3,208,418,700 2.3521 90,150,058,600 94.87 2018 85,742,095,940 92,548,040,600 0.9596 61,886,750 1,564,611,410 1,798,600,552 3,425,098,712 2.4010 95,973,139,312 92.91 2019 87,302,742,810 97,534,897,800 0.9686 61,144,070 1,564,514,200 1,790,652,112 3,416,310,382 2.4256 100,951,208,182 89.86

Notes:

(2) Assessed value and estimated actual values are equal.

Source: State Department of Assessments and Taxation

(1) Real property figures are based on a "triennial assessment" process. Under this method, only one-third of the properties in the County are reassessed each year. Any increase in value is phased in over a three-year period in equal increments. Therefore, assessed values only reflect the phased-in amounts, while the estimated actual values indicate the full amount of the reassessment based on the latest physical inspection.

(3) Prior to fiscal year 2002, real property had been assessed at 40% of phased-in market value. Effective fiscal 2002, the real property is assessed at 100% of the phased-in market value. Personal Property had already been assessed at 100% of market value. The County tax rate is a weighted average of the unincorporated area and incorporated area rates.

PRINCE GEORGE'S COUNTY, MARYLAND Assessed and Estimated Actual Value of Taxable Property

Last Ten Fiscal Years

161

Table 6

County Direct Rates - Real Property (1) Overlapping Rates - Real Property

Fiscal Stormwater State of Year General (2) Pre-Trim (4) Management Total Direct (3) Maryland M-NCPPC WSTC

2010 0.8996 - 0.0540 0.9536 0.1120 0.2790 0.0260 2011 0.8998 - 0.0540 0.9538 0.1120 0.2790 0.0260 2012 0.9054 - 0.0540 0.9594 0.1120 0.2790 0.0260 2013 0.9028 - 0.0540 0.9568 0.1120 0.2790 0.0260 2014 0.8971 - 0.0540 0.9511 0.1120 0.2790 0.0260 2015 0.9019 - 0.0540 0.9559 0.1120 0.2790 0.0260 2016 0.9451 - 0.0540 0.9991 0.1120 0.2940 0.2600 2017 0.9364 - 0.0540 0.9904 0.1120 0.2940 0.0260 2018 0.9596 - 0.0540 1.0136 0.1120 0.2940 0.0260 2019 0.9686 - 0.0540 1.0226 0.1120 0.2940 0.0260

County Direct Rates - Personal Property (1) Overlapping Rates - Personal Property

Fiscal Stormwater State of Year General (2) Pre-Trim (4) Management Total Direct (3) Maryland M-NCPPC WSTC

2010 2.2724 - 0.1350 2.4074 0.2800 0.6975 0.0650 2011 2.0000 - 0.1350 2.1350 0.2800 0.6975 0.0650 2012 2.0000 - 0.1350 2.1350 0.2800 0.6975 0.0650 2013 2.2830 - 0.1350 2.4180 0.2800 0.6975 0.0650 2014 2.2684 - 0.1350 2.4034 0.2800 0.6975 0.0650 2015 2.2780 - 0.1350 2.4130 0.2800 0.6975 0.0650 2016 2.3723 - 0.1350 2.5073 0.2800 0.7351 0.0650 2017 2.3521 - 0.1350 2.4871 0.2800 0.7350 0.0650 2018 2.4010 - 0.1350 2.5360 0.2800 0.7350 0.0650 2019 2.4256 - 0.1350 2.5606 0.2800 0.7350 0.0650

Notes:

(1) In dollars per $100.00 of assessed value.

(2) Partial year real property improvements billed at pro rata tax rates.

(4) There is no County taxing authority assigned to debt payments for pre-TRIM bonds beginning in fiscal year 2004, because the debt was retired.

PRINCE GEORGE'S COUNTY, MARYLAND Direct and Overlapping Property Tax Rates

Last Ten Fiscal Years

(3) At the November 1978 General Election, the voters of the County adopted an amendment to the Charter limiting future collection of real property taxes to the amount collected in fiscal year 1979. The amendment, which became effective in December 1978, added Section 817B to the Charter. It is generally referred to as "TRIM" (TRIM is an acronym for Tax Reform Initiative by Marylanders).

162

Table 7

Cities Fiscal College District Mount New Seat Year Bowie Park Heights Greenbelt Hyattsville Laurel Rainier Carrollton Pleasant

2010 0.380 0.322 0.730 0.786 0.630 0.710 0.790 0.500 0.580 2011 0.380 0.322 0.730 0.786 0.630 0.710 0.790 0.500 0.580 2012 0.400 0.322 0.730 0.790 0.630 0.710 0.790 0.500 0.580 2013 0.400 0.322 0.730 0.790 0.630 0.710 0.790 0.500 0.580 2014 0.400 0.322 1.000 0.790 0.630 0.710 0.790 0.714 0.580 2015 0.400 0.335 1.000 0.805 0.630 0.710 0.860 0.712 0.580 2016 0.400 0.335 0.949 0.813 0.630 0.710 0.860 0.6652 0.580 2017 0.400 0.335 0.884 0.813 0.630 0.710 0.860 0.6652 0.580 2018 0.400 0.335 0.8175 0.8125 0.630 0.710 0.840 0.6652 0.580 2019 0.400 0.335 0.8175 0.8125 0.630 0.710 0.830 0.6652 0.580

Towns Fiscal Berwyn Capitol Colmar Cottage Eagle Fairmount Year Heights Bladensburg Brentwood Heights Cheverly Manor City Harbor Edmonston Heights

2010 0.486 0.740 0.443 0.412 0.480 1.000 0.600 0.292 0.600 0.388 2011 0.486 0.740 0.382 0.401 0.480 1.038 0.560 0.292 0.600 0.420 2012 0.486 0.740 0.382 0.392 0.480 1.038 0.520 0.292 0.600 0.420 2013 0.516 0.740 0.382 0.392 0.480 1.028 0.488 0.292 0.600 0.420 2014 0.516 0.740 0.386 0.462 0.580 1.490 0.650 0.480 0.600 0.460 2015 0.516 0.740 0.411 0.462 0.580 1.490 0.650 0.480 0.660 0.460 2016 0.530 0.740 0.4107 0.4619 0.580 1.310 0.650 0.480 0.660 0.460 2017 0.530 0.740 0.4107 0.4455 0.560 1.222 0.650 0.473 0.638 0.460 2018 0.530 0.740 0.4000 0.4455 0.540 1.154 0.650 0.473 0.617 0.460 2019 0.530 0.740 0.4000 0.4130 0.510 1.040 0.610 0.473 0.598 0.460

continued

PRINCE GEORGE'S COUNTY, MARYLAND Real Property Tax Rates - Overlapping Governments - Cities and Towns

Last Ten Fiscal Years

163

Table 7, continued

Towns Fiscal Forest Landover North Riverdale University Upper Year Heights Glenarden Hills Morningside Brentwood Park Park Marlboro (4)

2010 0.530 0.296 0.480 0.800 0.347 0.641 0.600 0.240 2011 0.530 0.296 0.480 0.780 0.347 0.641 0.541 0.240 2012 0.567 0.336 0.480 0.780 0.347 0.677 0.584 0.240 2013 0.567 0.336 0.480 0.740 0.347 0.654 0.579 0.240 2014 0.625 0.336 0.480 0.740 0.347 0.654 0.582 0.240 2015 0.625 0.336 0.480 0.740 0.440 0.654 0.632 0.240 2016 0.625 0.331 0.520 0.740 0.440 0.654 0.653 0.240 2017 0.625 0.331 0.520 0.740 0.440 0.654 0.608 0.240 2018 0.584 0.331 0.520 0.740 0.440 0.654 0.572 0.240 2019 0.547 0.358 0.520 0.780 0.440 0.654 0.538 0.240

Notes: (1) Tax rates are per $100 of assessed value.

(2) The County does not collect personal property taxes for the Cities or Towns.

(3) Taxes collected by the County for other fiscal units, including overlapping governments, are remitted based on actual collections.

(4) During fiscal years 2000 through 2004, the Town of Upper Marlboro did not collect town taxes.

Real Property Tax Rates - Overlapping Governments - Cities and Towns, continued Last Ten Fiscal Years

PRINCE GEORGE'S COUNTY, MARYLAND

164

Table 8

2010

Taxpayer Taxable

Assessed Value Rank

Percentage of Total County Taxable Assessed

Value Taxable

Assessed Value Rank

Percentage of Total County

Taxable Assessed

Value

National Harbor Grand, LLC $1,070,037,100 1 3.00%

Gaylord National, LLC 598,743,000 2 1.68% $ 754,309,030 1 2.02%

Potomac Electric Power Co. 562,037,490 3 1.58% 452,530,746 3 1.21%

Washington Gas Light Company 286,287,090 4 0.80% 242,450,682 5 0.66%

Verizon Maryland 281,199,970 5 0.79% 423,839,970 4 1.13%

Empirian Village of Maryland, LLC 278,863,300 6 0.78% 201,815,840 7 0.54%

Greenbelt Homes, Incorporated 222,866,814 7 0.63% 226,099,520 6 0.60%

Baltimore Gas & Electric 199,831,920 8 0.56% 145,079,100 9 0.39%

JKC Stadium, Inc 187,387,700 9 0.53% 198,178,697 8 0.53%

UMCPF-Property III, LLC 176,856,700 10 0.50% Mirant Chalk Point, LLC 503,954,157 2 1.35%

Silver Oaks Campus LLC 143,432,632 10 0.38%

Notes:

(1) Source: State of Maryland Department of Assessments and Taxation

PRINCE GEORGE'S COUNTY, MARYLAND Principal Taxpayers

Current Year and Nine Years Prior

2019

165

TABLE 9

Fiscal Collected within the Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date

Ended for the Percentage in Subsequent Percentage June 30 Fiscal Year Amount of Levy Years Amount of Levy

2010 1,001,271,795 995,260,491 99.39 5,374,489 1,000,659,828 99.94 2011 987,400,083 981,984,336 99.45 4,677,953 986,698,606 99.93 2012 869,334,583 866,278,838 99.64 2,250,547 868,610,832 99.91 2013 803,094,590 798,920,671 99.48 3,048,656 802,032,976 99.86 2014 778,008,663 773,446,612 99.41 3,226,356 776,774,371 99.83 2015 791,690,172 787,981,697 99.53 2,105,874 790,226,809 99.80 2016 853,046,726 852,874,411 99.98 (1,837,016) 851,359,726 99.76 2017 909,650,941 905,652,881 99.56 1,670,618 907,832,200 99.74 2018 971,598,769 967,523,822 99.58 0 969,239,643 99.58 2019 1,019,425,084 1,013,559,121 99.42 (1) 1,013,559,120 99.58

Notes:

(8) There is no County taxing authority assigned to debt payments for pre-TRIM bonds beginning in fiscal year 2004 because the debt was retired.

(3) Taxes are assessed July 1 and semi-annual payments are due September 30 and December 31.

(4) No discounts are allowed.

(5) Interest and penalty at 20% per annum is charged after September 30, except tax bills based upon certifications received after September 30 may be paid within thirty days without interest.

(6) Taxes on real property are collected by sale or legal action or both. Taxes on personal property are enforced by legal action.

(7) Tax sale date is the second Monday in May.

PRINCE GEORGE'S COUNTY, MARYLAND Property Tax Levies and Collections

Last Ten Fiscal Years

(2) Included is data for all property taxes billed applicable to all funds for Prince George's County, Maryland to include General, Debt Service, and Enterprise Funds. Property taxes billed for the State of Maryland, various municipalities, Washington Suburban Sanitary, Maryland National Capital Park and Planning, and the Washington Suburban Transit Commission, are excluded.

(1) Total collections include collections for adjustments in "total tax levy" in years subsequent to initial tax levy.

166

Table 10 PRINCE GEORGE'S COUNTY, MARYLAND

Delinquent Taxes and Service Charges Receivable - By Fund

As of June 30, 2019

Unincorporated

Delinquent Business Railroads Corporate Total

taxes by Real Personal and Public Personal General

year Property Property Utilities Property Fund

Year ended

June 30:

2019 $ 2,950,544 31,719 21,167 2,628,906 5,632,336

2018 1,572,248 9,979 - 714,726 2,296,953

2017 1,371,460 9,127 579 393,144 1,774,310

2016 1,195,949 12,834 23 437,644 1,646,450

2015 1,086,589 25,654 - 317,527 1,429,770

2014 947,496 13,703 - 244,839 1,206,038

2013 877,107 6,382 - 157,389 1,040,878

2012 573,035 8,865 72 148,206 730,178

2011 516,121 5,852 8 160,384 682,365

2010 (and prior) 2,606,249 2,176,039 247 982,186 5,764,721 $ 13,696,798 2,300,154 22,096 6,184,951 22,203,999

Enterprise Funds

Maryland-National Washington Washington

Delinquent Capital Park Suburban Suburban Total Stormwater

taxes by and Planning Sanitary Incorporated Transit Agency Management Total All

year State Commission Commission Towns Commission Special Funds Fund Funds

Year ended

June 30:

2019 $ 170,307 1,322,794 19,518 174,149 120,966 2,033,770 3,841,504 233,627 9,707,467

2018 63,116 360,250 17,357 31,711 32,948 - 505,382 62,173 2,864,508

2017 54,100 251,489 16,837 50,015 23,343 - 395,784 44,431 2,214,525

2016 40,255 231,234 16,256 41,288 21,431 - 350,464 40,551 2,037,465

2015 35,387 183,027 13,537 35,153 17,745 - 284,849 33,592 1,748,211

2014 34,581 154,610 14,502 30,937 14,989 - 249,619 28,254 1,483,911

2013 26,178 111,933 16,593 31,424 10,591 - 196,719 20,737 1,258,334

2012 28,905 109,734 21,018 28,249 10,553 - 198,459 20,573 949,210

2011 21,491 100,970 18,933 19,573 9,683 - 170,650 19,113 872,128

2010 (and prior) 269,827 1,070,055 83,010 122,182 110,329 - 1,655,403 219,661 7,639,785 $ 744,147 3,896,096 237,561 564,681 372,578 2,033,770 7,848,833 722,712 30,775,544

General Fund

Agency Funds

167

Table 11

Maryland HUD Maryland General CDA Certificates Section Industrial

Fiscal Obligation LGIT Infrastructure of 108 Land Act Other Capital Year Bonds (1) GOB Bonds Participation Notes Loans Loans Leases

2010 1,032,870,640 4,235,000 679,600 28,935,874 5,893,000 211,859 1,466,254 2,764,699 2011 1,058,301,880 2,905,000 617,300 34,717,732 5,395,000 183,713 982,088 10,664,091 2012 1,076,197,571 1,495,000 552,600 59,875,481 4,907,000 153,586 - 6,491,697 2013 1,356,817,910 - 484,300 51,777,027 4,636,000 121,336 - 19,365,264 2014 1,268,290,559 - 413,300 83,039,920 4,347,000 86,817 - 29,738,883 2015 1,385,801,745 - 339,000 72,116,502 4,038,000 49,867 - 41,572,611 2016 1,409,794,524 - 261,200 61,740,000 3,716,000 - - 41,962,400 2017 1,293,151,310 - - 51,505,000 2,295,000 - 1,418,480 61,140,500 2018 1,925,381,708 - - 150,070,000 2,027,000 - 1,418,480 56,142,776 2019 2,112,175,487 - - 263,195,000 725,000 - 1,418,480 110,201,592

Percentage General Certificates Total of

Fiscal Obligation Revenue of WSSC Capital Primary Personal Per Year Bonds (1) Bonds Participation (2) Loans Leases Government Income Capita

2010 84,285,855 7,083,800 266,208 - - 1,168,692,789 3.41% 1,349.99 2011 108,816,464 5,042,425 39,326 - - 1,227,665,019 3.50% 1,404.58 2012 126,235,054 2,934,277 - - 19,419 1,278,861,685 3.32% 1,451.38 2013 192,949,424 758,943 - - 10,090 1,626,920,294 4.22% 1,827.83 2014 182,450,700 385,998 - - - 1,568,753,177 3.90% 1,734.52 2015 198,374,541 - - - - 1,702,292,266 4.17% 1,871.61 2016 187,832,633 - 6,480,279 - - 1,711,787,036 4.08% 1,885.13 2017 176,434,056 - 6,193,448 - - 1,592,137,794 3.68% 1,744.32 2018 290,910,232 - - - - 2,425,950,196 5.40% 2,667.91 2019 343,156,183 - 6,725,260 - - 2,837,597,002 n.a. n.a.

(1) Amounts are net of related premiums, discounts, and adjustments. (2) Amounts include the 2016, 2017, 2018 and 2019 solid waste lease purchase agreements related to solid waste.

Business-Type Activities

PRINCE GEORGE'S COUNTY, MARYLAND Ratio of Outstanding Debt by Type

Last Ten Fiscal Years

General Bonded Debt Other Governmental Activities Debt

168

Table 12

Percentage General LGIT General Less Amounts General Net General of Actual

Fiscal Obligation Obligation to be Paid with Obligation Bonded Property Per Year Bonds (1) Bonds Restricted Resources (2) Bonds (1) Total Value Capita

2010 1,032,870,640 4,235,000 84,285,855 1,121,391,495 1.07% 1,295.35 2011 1,058,301,880 2,905,000 108,816,464 1,170,023,344 1.18% 1,338.63 2012 1,076,197,571 1,495,000 126,235,054 1,203,927,625 1.40% 1,366.33 2013 1,356,817,910 - 192,949,424 1,549,767,334 1.94% 1,741.15 2014 1,268,290,559 - 182,450,700 1,450,741,259 1.88% 1,604.04 2015 1,385,801,745 - 198,374,541 1,584,176,286 2.00% 1,741.74 2016 1,409,794,524 - 187,832,633 1,597,627,157 1.92% 1,759.41 2017 1,293,151,310 - 176,434,056 1,469,585,366 1.63% 1,610.05 2018 1,925,381,708 - 51,440,071 290,910,232 2,164,851,869 2.26% 2,380.77 2019 2,112,175,487 - 59,272,502 343,156,183 2,396,059,168 2.37% n.a.

(2) Beginning in fiscal year 2018, the County changed its presentation of outstanding debt per capita in the statistical section to include the restricted resources for the repayment of the principal of debt.

PRINCE GEORGE'S COUNTY, MARYLAND Ratio of General Bonded Debt Outstanding

Last Ten Fiscal Years

(1) Amounts are net of related premiums and discounts

Governmental-Type Activities Business-Type

Activities

169

Table 13

Percentage of Debt Applicable

Debt to this Jurisdiction's Governmental Unit: Outstanding Jurisdiction Share of Debt

Prince George's County: County Government 2,487,715,559$ (1) 100.00% 2,487,715,559$ Overlapping areas:

Maryland-National Capital Park and Planning Commission 111,030,000 0% - Washington Suburban Sanitary Commission 935,847,764 0% - Underlying towns and cities within the County 45,290,903 0% -

Component Unit: IDA of PG County lease revenue bonds - 100.00% -

Total Direct and Overlapping Debt 3,579,884,226$ 2,487,715,559$

(1) Includes bonds, notes, certificates of participation, loans, and capital leases of governmental activities. Amounts are net of related premiums, discounts, and adjustments.

PRINCE GEORGE'S COUNTY, MARYLAND Direct and Overlapping Governmental Activities Debt

As of June 30, 2019

170

Table 14 PRINCE GEORGE'S COUNTY, MARYLAND

Computation of Direct and Overlapping Debt June 30, 2019

Gross debt Self-supporting Net debt Direct debt: principal amount (9) debt principal amount Primary government:

General obligation bonds: General purpose $ 1,500,063,335 - 1,500,063,335 Stormwater management 292,927,945 292,927,945 (1) - Solid waste management system 43,567,682 43,567,682 (2) - School facilities surcharge - supported 383,448,412 383,448,412 (3) - Telecommunications - supported 14,516,670 14,516,670 (4) Mass transit 5,370,956 5,370,956 (5) -

Total direct debt 2,239,895,000 739,831,665 1,500,063,335 Overlapping debt: Other governmental units:

Maryland-National Capital Park and Planning Commission general obligation bonds 111,030,000 111,030,000 (6) - Washington Suburban Sanitary Commission 935,847,764 935,847,764 - Underlying towns and cities within the County 45,290,903 45,290,903 (7) -

Component unit: Industrial Development Authority of Prince George's County lease revenue bonds - - (8) -

Total overlapping debt 1,092,168,667 1,092,168,667 - Total direct and overlapping debt $ 3,332,063,667 1,832,000,332 1,500,063,335

Notes:

(1) The debt service payments on bonds issued by the County for stormwater management facilities are supported by a special ad valorem tax and, accordingly, such bonds are considered self-supporting.

(2) County solid waste bonds are repaid from user charges.

(3) Debt service payments on a portion of the school construction bonds are supported by the school facilities surcharge on new residential construction. This portion is considered self-supporting.

(4) Debt service payments on the bonds issued for School Renovation Projects are supported by the Telecommunication Tax, levied on telecommunication service in the county. (5) These bonds are a liability of the Washington Suburban Transit Commission. The Washington Suburban Transit Commission reimburses the debt service payments on bonds issued by the County for mass transit projects and, accordingly, such bonds are considered self-supporting.

(6) At June 30, 2012, the County was contingently liable as guarantor on these bonds issued by the Maryland-National Capital Park and Planning Commission.

(7) The debt issued by the towns and cities within the County is supported by the revenue sources of the respective towns and cities.

(8) Debt service costs for the 1994A Lease Revenue Bonds are reimbursed to the County by the State of Maryland pursuant to a lease agreement relating to the Hyattsville Multi-Service Center. Debt related to the Series 2003A,

2003B and 2009 IDA Bonds were defeased. The date of defeasance was 05/23/2018.

(9) Amounts do not included related premiums, discounts, and adjustments.

171

Table 15

Legal Debt Margin Calculation for Fiscal Year 2019:

Assessable base of Real Property 97,534,897,800$ Assessable base of Personal Property 3,416,310,382 Debt limit (a total of 6% Real property & 15% of Personal property) 6,364,540,425 Debt applicable to limit: General obligation bonds 1,500,063,335

Total net debt applicable to limit 1,500,063,335 Legal debt margin 4,864,477,090

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Assessable Base - Real property $ 102,512,190,089 $ 96,199,089,410 $ 83,404,281,380 $ 76,633,200,500 $ 74,563,618,491 $ 76,307,098,100 $ 80,392,825,800 $ 86,941,639,900 $ 92,548,040,600 97,534,897,800 Assessable Base - Personal property and

operating real property 2,782,745,819 2,749,268,420 2,713,325,370 3,204,672,974 2,755,349,219 2,905,626,768 3,008,566,730 3,208,418,700 3,425,098,712 3,416,310,382

Debt limit - Percentage of Assessable Base: Debt limit (a total of 6% of Real Property

Assessable base and 15% of Personal Property Assessable base). 6,568,143,278 6,184,335,628 5,411,255,688 5,078,692,976 4,887,119,492 5,014,269,901 5,274,854,558 5,697,761,199 6,066,647,243 6,364,540,425

Total net debt applicable to limit 701,045,978 711,514,526 713,200,331 899,514,499 844,289,449 944,926,424 968,882,035 898,012,035 1,384,725,682 1,500,063,335

Legal debt margin 5,867,097,300$ 5,472,821,102$ 4,698,055,357$ 4,179,178,477$ 4,042,830,043$ 4,069,343,477$ 4,305,972,523$ 4,799,749,164$ 4,681,921,561$ 4,864,477,090$

Total net debt applicable to the limit as a percentage of debt limit 10.67% 11.51% 13.18% 17.71% 17.28% 18.84% 18.37% 15.76% 22.83% 23.57%

Notes: 1) Prior to fiscal year 2002, real property had been assessed at 40% of the phased-in market value, and personal property at 100% of market value. The debt limit was 15% of the total assessed value. Effective fiscal 2002, the real property is assessed at 100% of the phased-in market value. Therefore, effective in fiscal year 2002, the debt limit is a total of 6% of the real property assessable base and 15% of the personal property assessable base.

PRINCE GEORGE'S COUNTY, MARYLAND Computation of Legal Debt Margin

Last Ten Fiscal Years

172

Table 16 PRINCE GEORGE'S COUNTY, MARYLAND

Revenue Bond Coverage Last Ten Fiscal Years

Less: Net Less: Net Fiscal Total Operating Available Total Operating Available Year Revenues (2) Expenses (3) Revenues Principal Interest (4) Coverage Revenues (2) Expenses (3) Revenues Principal Interest (4) Coverage

2010 93,076,593 79,534,255 13,542,338 4,945,000 453,396 2.51 6,829,328 13,145 6,816,183 2,482,842 4,255,642 1.01 2011 92,447,372 80,517,079 11,930,293 2,041,375 220,568 5.27 7,877,002 18,205 7,858,797 1,877,068 5,493,438 1.07 2012 91,620,951 84,288,431 7,332,520 2,108,148 157,476 3.24 7,873,840 18,878 7,854,962 2,259,349 5,522,879 1.01 2013 92,564,690 82,820,258 9,744,432 2,175,333 88,014 4.31 7,878,061 18,563 7,859,498 4,615,000 3,170,292 1.01 2014 91,655,085 81,336,092 10,318,993 372,945 16,899 26.47 7,867,809 18,500 7,849,309 4,805,000 3,062,800 1.00 2015 92,897,601 82,056,019 10,841,582 385,998 6,305 27.64 7,872,234 18,563 7,853,671 5,025,000 3,065,464 0.97 2016 96,169,647 87,936,833 8,232,814 - - 7,897,893 18,500 7,879,393 5,265,000 2,829,368 0.97 2017 98,448,257 92,479,281 5,968,976 - - 7,866,378 8,510 7,857,868 5,510,000 2,360,290 1.00 2018 100,867,699 86,788,318 14,079,381 - - 5,980,428 7,500 5,972,928 975,000 1,578,837 2.34 2019 101,566,226 87,845,986 13,720,240 - - 86 7,500 (7,414) - - 0.00

(2) Total revenues includes operating and non-operating revenues and transfers, except gains on disposal of property, intrafund transfers, and grants.

(4) This amount reflects the amount due in the fiscal year (net of accrual) plus bond refunding costs, less interest income. (3) Operating expenses include all expenses and transfers, except interest and debt issuance costs, depreciation and amortization, landfill postclosure expense, loss on disposal of equipment and intrafund transfers.

(1) The Primary Government's debt is comprised of revenue bonds of the Solid Waste Enterprise Fund. The Component Units include revenue bonds of the Industrial Development Authority of Prince George's County. The first bond issues of these entities were on December 1, 1990 and September 1, 1987, respectively. The Solid Waste Enterprise bonds were paid in full in December 2015.

Component Units (1)

Debt Service

Primary Government (1)

Debt Service

173

Table 17 PRINCE GEORGE'S COUNTY, MARYLAND

Revenue Bond Coverage (For Bond Covenant Purposes) Last Ten Fiscal Years

Net revenues available for debt service (1) Net debt service requirements Coverage

Gross Operating Net revenues Cash balances Net Fiscal revenues expenses available for available for Interest Gross Net alternative year (2) (3) debt service debt service (4) Principal (5) Total (6) (7) (8)

2010 93,122,207 64,057,763 29,064,444 113,001,227 4,945,000 453,396 5,398,396 17.25 5.38 20.93 2011 92,402,715 63,943,106 28,459,609 112,924,596 2,041,375 220,568 2,261,943 40.85 12.58 49.92 2012 91,651,787 67,660,904 23,990,883 106,135,079 2,108,148 157,476 2,265,624 40.45 10.59 46.85 2013 92,552,052 70,106,124 22,445,928 108,817,130 2,175,333 88,014 2,263,347 40.89 9.92 48.08 2014 92,020,057 63,998,949 28,021,108 118,214,793 372,945 16,899 389,845 236.04 71.88 303.24 2015 92,897,601 65,113,510 27,784,091 122,529,149 385,998 6,305 392,303 236.80 70.82 312.33 2016 96,169,647 71,958,454 24,211,193 119,597,798 - - - 0.00 0.00 0.00 2017 98,448,257 74,336,986 24,111,271 122,516,122 - - - 0.00 0.00 0.00 2018 100,867,699 68,727,138 32,140,561 139,365,189 - - - 0.00 0.00 0.00 2019 101,566,226 68,658,534 32,907,692 144,911,183 - - - 0.00 0.00 0.00

Notes: (1) Included in this schedule are revenue bonds of the Primary Government's Solid Waste Fund, whose first bond issue was on December 1, 1990. (2) Gross revenues includes operating and nonoperating revenues, excluding interest income on the Debt Service Reserve Account. (3) Operating expenses include all expenses and transfers except depreciation and amortization, project charges from other County funds, landfill postclosure expense, overhead allocation, and intrafund transfers.

(5) This amount reflects the amount due in the fiscal year (net of accrual) plus bond refunding costs, less interest income. (6) Gross coverage ratio equals gross revenues divided by net debt service on bonds. (7) Net coverage ratio equals net revenues available for debt service divided by net debt service on bonds. (8) Net alternative coverage ratio equals cash balances available for debt service divided by net debt service on bonds.

(4) Cash balances available for debt service includes net revenues available for debt service during the year and beginning balances for: amount due from other funds, unrestricted cash and investments, restricted cash and investments for the Operation & Maintenance Reserve, the Debt Service Reserve, and the Closing Cost Reserve.

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Table 18

Personal Income Per Capita

Calendar (thousands personal Civilian Labor Unemployment Registered Year Population (1) of dollars) (2) Income (2) Force (3) Rate (3) * pupils (4)

2009 834,560 33,227,622 38,810 452,754 7.1 127,977 2010 865,705 34,302,938 39,647 462,138 7.7 127,039 2011 874,045 35,036,640 40,215 466,787 7.2 126,671 2012 881,138 38,481,250 43,672 469,150 6.8 123,833 2013 890,081 38,595,921 43,362 467,318 6.9 123,737 2014 904,430 40,215,913 44,465 469,359 6.2 125,136 2015 909,535 40,806,805 44,866 495,449 4.7 127,576 2016 908,049 41,922,938 46,168 498,002 4.4 128,936 2017 912,756 43,232,981 47,365 513,393 4.7 130,814 2018 909,308 44,938,165 49,420 504,423 4.1 132,322

Notes:

* Calendar Year

(4) www.mdreportcard.org, updated 5/22/2019.

PRINCE GEORGE'S COUNTY, MARYLAND Demographic and Economic Statistics

Last Ten Calendar Years

(1) Population estimates from the U.S. Bureau of the Census, updated July 1, 2019.

(3) Maryland Department of Labor, Career and Workforce Information, updated June 2019. (2) Bureau of Economic Analysis, U.S. Department of Commerce, updated November 15, 2019.

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PRINCE GEORGE'S COUNTY, MARYLAND Table 19 Principal Employers Current Calendar Year and Nine Years Prior

Private Sector Employer Employees Rank Percentage of Total County Employment Employees Rank

Percentage of Total County Employment

United Parcel Service 3,000 1 0.62% 4,220 1 0.95% MGM National Harbor 2,785 2 0.58% 2,000 5 0.45% Marriott International 2,200 3 0.45% CBMC Capitol Building Maintenance Corp 1,800 4 0.37% Verizon 1,800 5 0.37% 2,738 3 0.62% University of Maryland Capital Region Health 1,750 6 0.36% 2,500 4 0.56% Melwood 1,400 7 0.29% Doctor's Community Hospital 1,300 8 0.27% 1,300 9 0.29% MedStar Health Southern Maryland Hospital Center 1,240 9 0.26% 1,300 10 0.29% Crosby Corporation 1,000 10 0.21%

Giant Food 3,600 2 0.81% Target 1,400 8 0.32% Shoppers Food Warehouse 1,975 6 0.45% Chevy Chase Bank 1,456 7 0.33%

Public Sector Employers University System of Maryland * 20,250 1 16,014 1 Joint Base Andrews Naval Air Facility Washington** 17,500 2 8,473 2 U.S. Internal Revenue Service** 4,735 3 5,539 4

United States Census Bureau** 4,605 4 4,287 5

NASA/Goddard Space Flight Center** 3,000 5 3,171 6

Prince George's Community College 2,045 6 1,700 7

National Maritime Intelligence-Integration Office** 1,890 7

US Department of Agriculture* 1,725 8 1,700 8 National Oceanic and Atmospheric Administration** 1,375 9

Adelphi Laboratory Center** 1,235 10 911 10

Prince George's County Government 7,105 3

USDT - Financial Mgt. Serv. 1,200 9

Notes:

* Includes UMCP, UMUC and Bowie State University. ** Employee counts for federal and military facilities exclude contractors to the extent possible, embedded contractors may be included.

Sources: Maryland Department of Commerce, revised 2018.

Excludes post offices, state and local governments, national retail and national foodservice; includes higher education.

20092018

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Table 20

2010 2011 2012 2013 2014 2015 2016 2017 4 2018 General Government

County Executive 46 45 45 45 45 45 45 45 45 County Council 103 101 108 112 114 121 113 157 128 Human Relations Commission 3 13 13 11 11 11 11 - - - Office of Ethics and Accountability - - - 4 4 4 4 4 6 Personnel Board 2 2 2 2 2 2 2 2 2 Circuit Court 130 130 130 130 130 130 135 136 137 Orphans' Court 6 6 6 6 6 6 6 6 7 Citizen Complaint Oversight Panel 1 1 1 1 1 1 1 1 2 Office of Finance 74 73 67 67 67 67 67 67 66 Office of Community Relations 3 26 38 35 50 65 65 65 65 65 Office of Management and Budget 27 26 25 25 25 24 24 25 26 Board of License Commissioners 7 7 7 7 7 7 7 8 8 Office of Law 60 60 54 54 54 54 54 55 55 Office of Human Resources Management 70 70 66 65 65 65 65 65 68 Office of Info. Tech. & Communications 0 0 0 0 0 0 - - - Board of Elections 19 19 18 18 18 18 18 18 18 Office of Central Services 178 170 151 154 158 162 167 171 171

Subtotal 762 761 726 751 772 782 773 825 804 Public Safety

Office of the State's Attorney 152 149 151 167 169 169 175 178 177 Police Department 2123 2122 2097 2097 2095 2095 2,096 2,096 2096 Fire/EMS Department 837 846 848 887 892 920 938 958 1025 Office of the Sheriff 342 335 333 340 342 342 344 347 351 Department of Corrections 637 644 639 640 640 640 640 640 647 Office of Homeland Security 214 211 210 211 211 211 211 215 216

Subtotal 4,305 4,307 4,278 4,342 4,349 4,377 4,404 4,434 4,512

Environment Soil Conservation District 13 13 13 13 13 15 15 15 15 Department of the Environment 1 250 251 236 156 65 61 113 113 113

Subtotal 263 264 249 169 78 76 128 128 128

Human Service Department of Public Works & Transportation 329 319 294 294 249 254 254 254 259 Department of Permitting, Inspections, and Enforcement2 - - - - 279 279 285 287 287 Housing & Community Development 22 21 18 22 22 27 28 27 27

Subtotal 351 340 312 316 550 560 567 568 573

Infrastructure and Development Department of Family Services 28 31 28 27 16 15 17 18 25 Health Department 289 261 238 242 231 193 193 198 215 Department of Social Services 15 14 14 15 15 15 15 20 25

Subtotal 332 306 280 284 262 223 225 236 265 Grand Total 6,013 5,978 5,845 5,862 6,011 6,018 6,097 6,191 6,282

Source: Office of Management and Budget Current Expense Budget 1 Prior to fiscal year 2015 the department name was the Department of Environmental Resources. 2 New agencies created in fiscal year 2013 and assumed some of the duties previously assigned to the Department of Environmental Resources. 3 Fiscal year 2016, the Human Relations Commission was renamed Office of Community Relations.

Last Ten Fiscals Years

Function/Agency

PRINCE GEORGE'S COUNTY, MARYLAND Total Government Employees by Function

4 The County revised its functional categories in fiscal year 2014. Fiscal years 2008 through 2016 subtotals are restated to reflect the revised categories. The following represents changes to expenditures categories from 2005-2012. General Government no longer includes States Attorney, Soil Conservation, Department of Family Services, and Department of Housing and Community Development. Public safety added State's Attorney and dropped Department of the Environment. Environment added Department of the Environment and Soil Conservation. Health and Human Services (Health and Public Welfare - Department of Social Services) merged categories with the Department of Family Services. Infrastructure added the new Department of Permitting, Inspections, and Enforcement and Department of Housing and Community Development to the existing Public Works (Department of Public Works and Transportation) Category.

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Table 21

Estimated Projected 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Circuit Court Criminal cases filed 8,783 8,684 8,191 9,299 8,033 6,414 6,637 7,461 7,383 7,759 Juvenile cases filed or reopened 2,242 2,079 2,038 1,984 1,410 1,162 1,136 1,212 1,089 861

Office of the Sheriff Number of warrants on file 53,703 48,433 45,770 43,599 41,299 39,737 36,867 35,000 32,000 30,000 Number of domestic related documents served 6,410 7,673 10,013 10,567 10,520 9,870 11,124 11,000 12,000 13,000

Department of Corrections Average daily Correctional Center population 1,229 1,175 1,200 n/a 1,198 1,008 952 950 924 920 Number of inmate court appearances n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Police Department Number of calls for service 807,592 746,486 616,180 615,000 650,600 657,064 418,086 420,000 420,000 520,000 Number of documented property crimes 31,011 27,757 25,816 24,100 21,100 18,786 14,701 14,700 14,700 13,800

Fire/EMS Department Number of fire calls for service 21,737 22,593 24,196 23,765 25,251 20,708 17,251 19,000 18,000 18,795

Office of Homeland Security Annual call volume 1,547,600 1,548,493 1,334,972 1,258,319 1,287,749 1,359,022 1,337,014 1,350,000 1,400,000 1,700,000

Public Works & Transportation Road miles maintained 1,834 1,841 1,873 1,873 1,874 1,882 1,887 1,890 1,895 1,900 Street resurfacing (in miles) 22 22 18 13 9 5 25 35 25 25

Department of the Environment Abandoned vehicles impounded n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Permits issued by Permits and Review Division 24,682 25,775 24,850 26,000 27,000 n/a n/a n/a n/a n/a

Soil Conservation District Number of new acres covered by completed soil and water quality plans 1,300 8,151 3,367 4,881 3,200 4,012 5,061 4,000 4,100 4100

Department of Family Services Number of people requesting disability information and assistance 2,500 n/a n/a n/a n/a n/a n/a n/a n/a n/a

Housing & Community Development Number of new units created 1,200 1,839 2,092 2,350 2,350 2,374 2,386 2,727 2,849 3291

Department of Social Services Total households receiving energy assistance 11,483 13,764 11,201 10,536 10,468 9,140 9,457 9,033 9,033 9274

Source: Office of Management and Budget Current Expense Budget

Agency/Program

PRINCE GEORGE'S COUNTY, MARYLAND Operating Indicators by Function/Program

Last Ten Fiscal Years

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Table 22

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Public Facilities

District Police Stations 6 6 6 6 6 6 6 7 7 8 Fire and Emergency Rescue Stations 44 44 44 51 52 51 49 51 52 52 Emergency Medical Units 58 58 60 59 59 59 59 62 67 67 Parks/Recreation Facilities (active parks) 582 583 584 590 595 599 599 599 605 Multi-Purpose Senior Centers 7 7 7 7 8 8 8 6 6 6 Libraries 18 19 19 19 19 19 19 19 19 19 Public Schools

Elementary Schools 131 131 130 129 135 118 118 122 120 117 Middle Schools 29 29 29 29 29 24 24 24 24 24 High Schools 30 30 30 30 30 32 30 24 31 32 Special Centers 11 9 9 7 7 8 13 13 13 11

Department of Public Works and Transportation Miles of County-maintained Paved Roads 1,834 1,862 1,873 1,873 1,900 1,900 1,900 2000 2000 2000 Signals in Service * 266 267 259 260 249 261 263 293 299 263

* Includes beacons and school flashers

Emergency Medical Units: Includes Advanced Life Support (ALS) and Basic Life Support (BLS) Ambulances

https://www.princegeorgescountymd.gov/288/Our-Stations

Source: Office of Management and Budget Current Expense Budget

Function/Program

PRINCE GEORGE'S COUNTY, MARYLAND Capital Asset Statistics Last Ten Fiscal years

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