Paper 2
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CAFRFairfaxcountyACFR21.pdf
Front Cover Photograph:
Fairfax County Government Center
Back Cover Photograph:
Fairfax County District Map
Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021
Department of Finance 12000 Government Center Parkway, Suite 214
Fairfax, Virginia 22035 (703) 324-3120, TTY 711 www.fairfaxcounty.gov
II County of Fairfax, Virginia Annual Comprehensive Financial Report
III
Table of Contents
County of Fairfax, Virginia Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Table of Contents
Page
Introductory Section (unaudited) Letter of Transmittal ................................................................................................................................ IX Directory of Officials ......................................................................................................................... XXXI Organizational Chart ....................................................................................................................XXXVIII Certificate of Achievement for Excellence in Financial Reporting..................................................XXXV
Financial Section Report of Independent Auditor .................................................................................................................. 1 Management’s Discussion and Analysis (unaudited) ............................................................................... 5 Basic Financial Statements ..................................................................................................................... 21
Exhibit A Statement of Net Position ............................................................................................. 22 A-1 Statement of Activities .................................................................................................. 26 A-2 Balance Sheet – Governmental Funds with Reconciliation .......................................... 28 A-3 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds with Reconciliation ............................................. 32 A-4 Statement of Net Position – Proprietary Funds ............................................................. 34 A-5 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds .................................................................................... 36 A-6 Statement of Cash Flows – Proprietary Funds .............................................................. 37 A-7 Statement of Fiduciary Net Position ............................................................................. 38 A-8 Statement of Changes in Fiduciary Net Position .......................................................... 39 A-9 Combining Statement of Net Position – Component Units .......................................... 40 A-10 Combining Statement of Activities – Component Units ............................................... 44 Notes to the Financial Statements
A Summary of Significant Accounting Policies ............................................................... 47 B Deposits and Investments.............................................................................................. 58 C Property Taxes ............................................................................................................... 79 D Receivables ................................................................................................................... 80 E Interfund Balances and Transfers .................................................................................. 81 F Capital Assets ................................................................................................................ 83 G Retirement Plans ........................................................................................................... 85 H Other Post-Employment Benefits................................................................................ 101 I Risk Management ...................................................................................................... 127 J Long-Term Obligations .............................................................................................. 129 K Long-Term Commitments .......................................................................................... 146 L Contingent Liabilities .................................................................................................. 150 M Implementation of New Accounting Pronouncements ............................................... 150
IV County of Fairfax, Virginia Annual Comprehensive Financial Report
Table of Contents
Page
Required Supplementary Information ................................................................................................. 153
Budgetary Comparison Schedule – General Fund (Budget Basis) .............................................. 153 Schedule of Changes in Net Pension Liability and Related Ratios: Employees’ Retirement System Last Ten Fiscal Years ................................................................. 154 Police Officers Retirement System Last Ten Fiscal Years ............................................................ 156 Uniformed Retirement System Last Ten Fiscal Years .................................................................. 158 Educational Employees Supplementary Retirement System Last Ten Fiscal Years .................... 160 Schedule of Net Pension Liability - Single Employer Plans Last Ten Fiscal Years ..................... 162 Schedule of Employer Contributions - Single Employer Plans Last Ten Fiscal Years ................ 164 Schedule of Proportionate Share of Net Pension Liability in VRS Pension Plan Last Ten Fiscal Years ............................................................................................................... 166 Schedule of Contributions -VRS Pension Plan Last Ten Fiscal Years ......................................... 166 Schedule of Changes in Net OPEB Liability and Related Ratios - Last Ten Fiscal Years ........... 167 Schedule of Contributions - OPEB Last Ten Fiscal Years ........................................................... 168 Schedule of Investment Returns - OPEB Last Ten Fiscal Years .................................................. 168 Schedule of Changes in the Net OPEB Liability and Related Ratios - Public Schools OPEB Plan Last Ten Fiscal Years ........................................................................................... 169 Schedule of Public Schools’ Proportionate Share of Net OPEB Liability - VRS HIC Last Ten Fiscal Years ............................................................................................................... 170 Schedule of Public Schools’ Proportionate Share of Net OPEB Liability - VRS GLI Last Ten Fiscal Years .............................................................................................................. 170 Schedule of Contributions - Public Schools OPEB Plan Last Ten Fiscal Years .......................... 171 Schedule of Contributions - Public Schools -VRS HIC Last Ten Fiscal Years ............................ 171 Schedule of Contributions - Public Schools -VRS GLI Last Ten Fiscal Years ............................ 172 Schedule of Investment Returns - Public Schools OPEB Plan Last Ten Fiscal Years ................. 172 Notes to Required Supplementary Information ............................................................................ 173
Other Supplementary Information ...................................................................................................... 177 Exhibit Governmental Funds B Budgetary Comparison Schedule Detail – General Fund (Budget Basis) .................. 178 Budgetary Comparison Schedules – General Fund Group (Budget Basis): B-1a Consolidated Community Funding Pool Fund (Budget Basis) ................................... 181 B-1b Contributory Fund (Budget Basis) .............................................................................. 181 B-1c Northern Virginia Regional Identification System (Budget Basis) ............................. 182 B-1d Information Technology Fund (Budget Basis) ............................................................ 182 B-1e Revenue Stabilization Fund (Budget Basis) ............................................................... 183 B-1f Economic Opportunity Reserve Fund (Budget Basis) ................................................ 183
C Combining Balance Sheet – Nonmajor Governmental Funds .................................... 186 C-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ................................................. 187
Special Revenue Funds
D Combining Balance Sheet – Special Revenue Funds ................................................. 194 D-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Special Revenue Funds ........................................................................ 200 Budgetary Comparison Schedules – Special Revenue Funds (Budget Basis): D-2a County Transit Systems Fund (Budget Basis) ............................................................ 206
V
Table of Contents
Exhibit Page
D-2b Dulles Rail Phase I Transportation Improvement District Fund (Budget Basis) ........ 206 D-2c Dulles Rail Phase II Transportation Improvement District Fund (Budget Basis)....... 207 D-2d County and Regional Transportation Projects (Budget Basis).................................... 207 D-2e Tysons Service District Fund (Budget Basis) ............................................................. 208 D-2f Reston Service District Fund (Budget Basis) ............................................................. 208 D-2G Metrorail Parking System Pledged Revenue (Budget Basis) ...................................... 209 D-2H Federal/State Grant Fund (Budget Basis) ................................................................... 209 D-2I Cable Communications Fund (Budget Basis) ............................................................. 210 D-2j Early Childhood Birth to 5 Fund (Budget Basis) ........................................................ 210 D-2K Fairfax-Falls Church Community Services Board Fund (Budget Basis) .................... 211 D-2L Reston Community Center Fund (Budget Basis) ........................................................ 211 D-2M McLean Community Center Fund (Budget Basis) ..................................................... 212 D-2N Burgundy Village Community Center Fund (Budget Basis) ...................................... 212 D-2O E-911 Fund (Budget Basis) ........................................................................................ 213 D-2P Integrated Pest Management Program Fund (Budget Basis) ...................................... 213 D-2Q Stormwater Services Fund (Budget Basis) ................................................................. 214 D-2R Leaf Collection Fund (Budget Basis).......................................................................... 214 D-2S Refuse Collection and Recycling Operations Fund (Budget Basis) ........................... 215 D-2T Refuse Disposal Fund (Budget Basis) ........................................................................ 215 D-2u I-95 Refuse Disposal Fund (Budget Basis) ................................................................. 216 D-2V Community Development Block Grant Fund (Budget Basis) .................................... 216 D-2w Housing Trust Fund (Budget Basis) ............................................................................ 217 D-2x HOME Investment Partnership Grant Fund (Budget Basis) ....................................... 217 Debt Service Funds E Combining Balance Sheet – Debt Service Funds ....................................................... 220 E-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Debt Service Funds .................................................................... 221 E-2 Budgetary Comparison Schedule – Debt Service Fund (Budget Basis) ..................... 222
Capital Projects Funds
F Combining Balance Sheet – Capital Projects Funds ................................................... 226 F-1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Capital Projects Funds ......................................................................... 230
Internal Service Funds
G Combining Statement of Net Position – Internal Service Funds ................................ 236 G-1 Combining Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Funds.................................................................... 238 G-2 Combining Statement of Cash Flows – Internal Service Funds ................................. 240
Fiduciary Funds
H Combining Statement of Plan Net Position – Trust Funds ......................................... 244 H-1 Combining Statement of Changes in Plan Net Position – Trust Funds ...................... 246 H-2 Combining Statement of Fiduciary Assets and Liabilities – Custodial Funds ............ 248 H-3 Combining Statement of Changes in Assets and Liabilities – Custodial Funds ......... 250
VI County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit Page
Component Units
Fairfax County Public Schools:
I Balance Sheet with Reconciliation – Governmental Funds ........................................ 254 I-1 Statement of Revenues, Expenditures, and Changes in Fund Balances with
Reconciliation – Governmental Funds ................................................................... 256 I-2 Budgetary Comparison Schedule – General Fund (Budget Basis) ............................. 259 Budgetary Comparison Schedules – Special Revenue Funds (Budget Basis): I-3a Food and Nutrition Services Fund (Budget Basis) ..................................................... 259 I-3b Grants and Self-Supporting Programs Fund (Budget Basis) ...................................... 260 I-3c Adult and Community Education Fund (Budget Basis) ............................................. 260 I-4 Combining Statement of Net Position – Internal Service Funds ................................ 261 I-5 Combining Statement of Revenues, Expenses, and Changes in Net Position –
Internal Service Funds ........................................................................................... 262 I-6 Combining Statement of Cash Flows – Internal Service Funds ................................. 263 I-7 Statement of Fiduciary Net Position – Trust Funds .................................................... 264 I-8 Statement of Changes in Fiduciary Net Position – Trust Funds ................................. 265 Fairfax County Redevelopment and Housing Authority: J Statement of Net Position ........................................................................................... 268 J-1 Statement of Revenues, Expenses, and Changes in Net Position ............................... 269 J-2 Statement of Cash Flows............................................................................................. 270 Fairfax County Park Authority: K Balance Sheet with Reconciliation ............................................................................. 272 K-1 Statement of Revenues, Expenditures, and Changes in Fund Balances with
Reconciliation ........................................................................................................ 274 Budgetary Comparison Schedules (Budget Basis): K-2a General Fund (Financed by County General Fund) .................................................... 277 K-2b Park Revenue Fund ..................................................................................................... 277 Fairfax County Economic Development Authority: L Balance Sheet with Reconciliation ............................................................................. 279 L-1 Statement of Revenues, Expenditures, and Changes in Fund Balance with
Reconciliation ........................................................................................................ 280 L-2 Budgetary Comparison Schedule – General Fund (Financed by County General Fund) (Budget Basis)................................................................................ 281
Statistical Section (unaudited) Table
Financial Trends Information
1.1 Net Position by Component, Last Ten Fiscal Years .................................................... 284 1.2 Changes in Net Position, Last Ten Fiscal Years .......................................................... 286 1.3 Fund Balances, Governmental Funds, Last Ten Fiscal Years ..................................... 290 1.4 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years .................. 292
Table of Contents
VII
Table of Contents
Table Page Revenue Capacity Information
2.1 Assessed Value and Actual Value of Taxable Real Property, Last Ten Fiscal Years .............................................................................................. 294 2.2 Direct and Overlapping Real Property Tax Rates, Last Ten Fiscal Years ................... 295 2.3 Principal Real Property Taxpayers, Current Year and Nine Years Ago ...................... 296 2.4 Real Property Tax Levies and Collections, Last Ten Fiscal Years .............................. 296
Debt Capacity Information
3.1 Ratios of Outstanding Debt by Type, Last Ten Fiscal Years ....................................... 298 3.2 Ratios of General Bonded Debt Outstanding, Last Ten Fiscal Years .......................... 300 3.3 Direct and Overlapping Governmental Activities Debt .............................................. 301 3.4 Self-Imposed Debt Margin Information, Last Ten Fiscal Years ................................. 302 3.5 Pledged Revenue Coverage for the Integrated Sewer System, Last Ten Fiscal Years .............................................................................................. 304
Demographic and Economic Information 4.1 Demographic and Economic Statistics, Last Ten Calendar Years .............................. 305 4.2 Principal Employers, Current Year and Nine Years Ago ............................................ 306
Operating Information 5.1 Full-time Equivalent County Government Employees by Function, Last Ten Fiscal Years .............................................................................................. 308 5.2 Operating Indicators by Function, Last Ten Fiscal Years ........................................... 310 5.3 Capital Asset Statistics by Function, Last Ten Fiscal Years ........................................ 314
VIII County of Fairfax, Virginia Annual Comprehensive Financial Report
Introductory Section
T
he Introductory Section contains the letter of transmittal, which provides an overview of the
County of Fairfax’s finances, economic prospects, and achievements. Also, included in this section is the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association. It is the highest form of recognition in governmental financial reporting.
Department of Finance
12000 Government Center Parkway,
Suite 214
Fairfax, VA 22035
703-324-3120, TTY 711
www.fairfaxcounty.gov/finance
November 16, 2021
Honorable Chairman, Members of the Board, and Residents of the County of Fairfax:
We are pleased to submit to you the Annual Comprehensive Financial Report (ACFR) of the County of
Fairfax, Virginia (the County) for Fiscal Year (FY) 2021 (July 1, 2020 - June 30, 2021) in accordance with
the Code of Virginia. The financial statements included in this report conform to generally accepted
accounting principles as promulgated by the Governmental Accounting Standards Board (GASB).
Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the County management. To the best of our knowledge and belief, the enclosed data
are accurate in all material respects and are reported in a manner that presents fairly the financial position and
results of operations of the various funds and component units of the County. Extensive disclosures have
been included to enable the reader to gain the maximum understanding of the County’s financial and business
affairs.
The following subjects are discussed in this letter:
• Economic Condition and Outlook;
• Major Initiatives and Accomplishments;
• About Fairfax County;
• Financial Information;
• Independent Audit;
• Awards; and
• Acknowledgements.
Important information regarding the financial statements and audit is discussed under the Financial
Information heading located on page XXVII.
ECONOMIC CONDITION AND OUTLOOK
Fairfax County’s Gross County Product, adjusted for inflation, decreased at a rate of 2.6 percent in calendar
year (CY) 2020, following an estimated increase of 3.2 percent in CY 2019, according to economic
forecasting conducted by IHS Markit Ltd. The County’s economy shrank sharply during the first half of the
year as national and local economies were partially shut down to reduce the spread of the novel coronavirus
(COVID-19). During the latter half of the year, the economy gradually reopened, and growth resumed.
C o u n t y o f F a i r f a x , V i r g i n i a
To protect and enrich the quality of life for the people, neighborhoods, and diverse communities of Fairfax
County
To protect and enrich the quality of life for the people, neighborhoods and diverse communities of Fairfax
County
LETTER OF TRANSMITTAL
Introductory Section (Unaudited) X
As the COVID-19 pandemic wanes, and with continued fiscal support and low interest rates, growth is
expected to accelerate in FY 2022. However, there are some potential risks to the forecast. The future course
of Fairfax County’s economic and revenue outlook is highly dependent upon the course of the virus and the
path toward a more normal economic environment. The reopening of the economy, consumers’ accumulated
unspent savings, fiscal stimulus, and COVID-19 related supply constraints appear to have produced inflation
in some key sectors. Compared to a year ago, the August Consumer Price Index increased 5.3 percent and
Federal Reserve Board Chair Jerome Powell has acknowledged that the increase in the rate of inflation is less
transitory than the Fed originally anticipated. The Federal Reserve has announced it expects to discontinue
some of its extraordinary monetary support over the next year, but if inflation continues to run high, the Fed
may have to increase interest rates sooner than expected to slow an overheated economy.
The Board of Supervisors (BOS) and County Executive have been very proactive and fiscally responsible in
monitoring the County’s revenue and economic outlook due to the uncertainty for FY 2022. For the second
year in a row, a special Midyear Budget Review will be conducted to closely review the financial accounts
and fiscal patterns. The impact of economic conditions on FY 2022 revenue will become more apparent in
upcoming months after several months of actual FY 2022 collections have been received.
The Local Economy
Total employment in Fairfax County decreased a net of 30,587 jobs (4.9 percent) in CY 2020, as reported by
the U.S. Bureau of Labor and Statistics. While job losses were spread across the economy, losses were
concentrated in public facing sectors such as the Leisure and Hospitality sector, which includes restaurant and
hotel positions, where the number of jobs fell by 27.1 percent for the year due to pandemic related closures.
Other sectors such as Professional and Business Services, where employees were able to work from home,
were much less impacted. In the Professional and Business Services sector, the total number of jobs fell by
less than 1 percent for CY 2020.
Because the economy of the Washington, D.C., region is knowledge-based, it is somewhat insulated from the
supply-chain manufacturing disruptions affecting other regional economies. Business, Professional, and
Occupational License (BPOL) and Sales Taxes are two revenue sources that are good indicators of economic
activity in the County. In FY 2021, overall BPOL receipts decreased 1.5 percent from the previous year.
Revenues in the combined Consultant and Business Service Occupations categories, which represent almost
45 percent of total BPOL receipts, increased by 4.3 percent. Due to pandemic related closures, the Retail
category decreased 10.7 percent in FY 2021. FY 2021 Sales Tax receipts increased 5.1 percent, thanks to
federal stimulus and the pandemic-related shift toward online spending.
For the commercial real estate market, office vacancy rates increased. According to the Fairfax County
Economic Development Authority (FCEDA), the direct office vacancy rate increased for the first time in six
years, from 13.9 percent in CY 2019 to 14.6 percent as of the end of CY 2020.
Based on information from Bright MLS, the average sales price of homes in Fairfax County rose 8.4 percent
in CY 2020. Home prices continue to increase primarily because of a tight inventory of homes for sale and
unprecedentedly low mortgage interest rates. Since 2009, the average home sales price has risen 56.4
percent, or an average annual growth of 4.1 percent. Bright MLS also reported that home sales in Fairfax
County increased by 3.7 percent compared to CY 2019.
It should be noted that in FY 2021, the County received approximately $111 million in federal stimulus funds
from the American Rescue Plan Act (ARPA) of 2021 to mitigate revenue shortfalls and the negative effects of
the pandemic. The revenue was appropriated in the General Fund to provide the County flexibility in
responding to the pandemic. An additional similarly sized tranche of stimulus funds is expected in FY 2022.
LETTER OF TRANSMITTAL
XI County of Fairfax, Virginia-Annual Comprehensive Financial Report
As illustrated in the following chart, Fairfax County’s unemployment rates, not seasonally adjusted, have
consistently tracked well below both state and national averages. For June of FY 2021, Fairfax County’s
unemployment rate was 4.1 percent. The unemployment rate for the state of Virginia and the United States
was 4.3 percent and 5.9 percent, respectively.
Economic Development
The County supports economic development through promoting a vibrant, diversified business community
and growing job opportunities, while enhancing the commercial tax base. This approach has required quick
maneuvering to respond to the upheaval caused by COVID-19 and the subsequent shutdown of business
operations. Mandated full or partial business closures, health restrictions, and remote working redefined
many business models. Certain business sectors, workers, and communities have faced disproportionate
impacts of the COVID-19 pandemic. The Fairfax County Department of Economic Initiatives (DEI) and the
FCEDA are the lead economic development organizations in Fairfax County.
Fairfax County DEI developed and led several COVID-19 response activities. This includes the following
business support and economic recovery initiatives in FY 2021.
• Overseeing the $1 million Small Business COVID-19 Recovery Microloan Fund and transitioning that to a revolving loan fund. The original source of funding was the Economic Opportunity Reserve.
• Developing, promoting, and overseeing the Fairfax RISE program: COVID-19 Small Business and Non-Profit Relief Grant Program, which distributed $52.6 million in grants to 4,809 small businesses.
The primary source of funding was the Coronavirus Aid Relief and Economic Security (CARES) Act
received in late FY 2020.
• In partnership with the FCEDA, leading and launching an Economic Recovery Framework for business retention and economic competitiveness, and convening Economic Recovery Forums with
more than 15 County agencies to discuss implementation and tracking.
• Developing, promoting, and overseeing the $25 million PIVOT small business recovery grant program. The source of funding is ARPA funds.
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12.0
2017 2018 2019 2020 2021
P e r c e n
t a g
e
Fiscal Year as of June 30
Unemployment Rates (Source: U.S. Bureau of Labor Statistics, Not Seasonally Adjusted)
United States
Virginia
Fairfax County
LETTER OF TRANSMITTAL
Introductory Section (Unaudited) XII
• Leading the County’s business communication and outreach, including the following: monitoring and updating the COVID-19 business webpage; answering business questions via emails and phone
calls and, designing and mailing business resources postcards to approximately 30,000 businesses.
• Convening a business continuity working group to coordinate partners across the County in the response to the COVID-19 crisis impacting the local business community.
FCEDA plays a major role in carrying out the economic development activities of the County. During the
COVID-19 pandemic, FCEDA worked very closely with the County to keep the business community’s
competitive edge. A lot of the workforce in the County are employees of small businesses that provide
hospitality, tourism, food and beverage, retail trade, and passenger transportation. These business areas were
hit the hardest. Through the collaborative efforts of the County and FCEDA, small businesses were provided
several opportunities to help sustain them through the worst of these times.
During CY 2020 the FCEDA hosted six career fairs, connecting over 10,000 candidates with over 500
recruiters from our companies across Fairfax County. We had 399,000 visits to our talent website,
workinnorthernvirginia.com, with 198,000 coming from top 10 markets around the U.S. for recruiting talent
to Fairfax County. Our outreach included 170 companies and more than 80 universities, including over 20
Historically Black Colleges and Universities (HBCUs) across the nation.
The FCEDA operates under the direction of eight commissioners appointed by the BOS. The FCEDA’s
mission statement is: “to promote the competitive advantages of Fairfax County and influence the growth of a
diverse and innovative ecosystem that enhances the tax base, creates demand for commercial space, and
supports an extraordinary and equitable quality of life across Fairfax County.” It promotes the County as one
of the world’s best business locations. The FCEDA provides a wide array of services and information to assist
new, expanding and relocating American and international businesses. There are offices in six important
global technology business centers: Bangalore/Mumbai, India; London, England; Los Angeles; Berlin,
Germany; Seoul, South Korea; and Tel Aviv, Israel. In upholding the diversification of the County’s business
community, in CY 2020, the FCEDA assisted 46 foreign-owned businesses with their expansions in the
County. There are over 430 foreign-owned firms from 44 countries located in Fairfax County.
During CY 2020, the FCEDA worked with 153 companies adding approximately 11,176 jobs to Fairfax
County’s economy. The largest corporate announcements were as follows: Microsoft created 1,500 jobs in
Reston; Aerotek added 1,500 jobs in Fairfax; ID.me created 1,000 jobs in Tysons; Volkswagen Group of
America retained 798 jobs in Reston by moving within the County; Carahsoft added 200 jobs in Reston;
Expel created 164 jobs in Herndon; and Randstad Technologies added 155 jobs in Tysons. Not only are these
companies creating jobs, they are building the commercial tax base that the Board uses to fund high-quality
public services essential for the quality of life for the 1.15 million County residents to enjoy.
Of the 148 businesses making job announcements, 102 are U.S.-based. Among the U.S. firms, 17 are
minority-owned, woman-owned or veteran-owned companies. Of international businesses, 46 companies
with headquarters or parent companies overseas, announced expansions in Fairfax County in CY 2020.
The total office space inventory in the County was 119 million square feet as of CY-end 2020, and 2.7 million
feet under construction, making Fairfax County the largest suburban office market in the Washington D.C.
area and the second largest in the U.S. Industrial/flex inventory in the County were reported at 39 million
square feet.
Online Resource: https://www.fairfaxcountyeda.org/2020-rising-to-the-challenge-fceda-annual-report-
video-documents-collaboration-innovation-impact/
LETTER OF TRANSMITTAL
XIII County of Fairfax, Virginia-Annual Comprehensive Financial Report
MAJOR INITIATIVES AND ACCOMPLISHMENTS
On March 17, 2020, the BOS held an emergency special meeting, officially declaring a Local State of
Emergency in response to COVID-19. Then, during the board meeting on March 24, 2020, the BOS enacted
an Emergency Ordinance to assure the continuity in the County during the COVID-19 emergency. The
health, safety, and well-being of all County residents and employees became a top priority. This challenge
persisted throughout FY 2021 and the County responded with innovative ways to track the COVID-19 data
and keep the community informed while maintaining access to the basic services residents expect.
COVID-19 Data Dashboards
The Fairfax County Health Department’s COVID-19 Case Data Dashboard contains information on cases,
hospitalizations, and fatalities; rates by age, racial and ethnic groups; epidemic curve; and trajectory of cases;
probable cases, deceased cases by age group, and COVID-19 testing by week. The current level of
community transmission is substantial. Additionally, the proportion of PCR tests reported as positive has
decreased to 3.5% as of the release of the October 2021 update.
Included on the dashboard are:
• Total doses of COVID-19 vaccine administered among Fairfax Health District residents;
• Aggregate number of doses administered by date of vaccination;
• Number and proportion of residents who have received at least one dose;
• Number and proportion of residents who are fully vaccinated; and
• Proportion vaccinated by age group, including among adolescents.
Testing and Vaccines
The Fairfax County Health Department continues to deploy its mobile laboratory to provide COVID-19
testing in several locations. These mobile testing opportunities are for individuals who are experiencing
symptoms of COVID-19 or who may have been exposed to COVID-19 and were recommended for testing
during their quarantine period. Dates, times and locations of sites are posted on the Health Department’s
COVID-19 Testing page and are based on demand and resources. The mobile clinics will provide both rapid
tests and PCR tests.
During FY 2021, vaccines became available to help protect people and mitigate the disease caused by the
virus. Northern Virginia’s health districts initiated a media campaign to encourage everyone in the region to
get vaccinated. The campaign encourages broad vaccination across the region while also focusing on various
audiences who remain vaccine hesitant. Throughout the County, vaccination sites are available with supplies
to vaccinate people 5 and older, as well as those eligible to receive a booster dose. The vaccination sites include healthcare providers, pharmacies, local Health Department clinics and the Community Vaccination
Center (CVC) in Tysons.
Online Resource: https://www.fairfaxcounty.gov/covid19/
Emergency Basic Needs Assistance
Neighborhood and Community Services’ Coordinated Services Planning (CSP) call center, a hotline for
residents seeking emergency basic needs assistance, has experienced unprecedented demand since the start of
the COVID-19 pandemic. To address the community’s needs, $22 million of CARES Act funding was
allocated to community-based organizations (CBOs) to provide food and financial assistance to residents who
needed help paying for groceries, rent, utilities, and medicine. Through a partnership between the Department
of Housing and Community Development and CSP, coordinated access to additional resources were available
LETTER OF TRANSMITTAL
Introductory Section (Unaudited) XIV
to support County residents’ basic needs, including CBOs’ grant and private funding and $7.9 million of
Community Development Block Grant funds. In addition, the County received $69.6 million to administer the
U.S. Treasury’s Emergency Rental Assistance Program to help residents struggling to pay rent and utilities
due to the pandemic’s impact. This assistance has helped County residents meet their immediate needs and
prevent evictions throughout the County.
The pandemic disproportionately impacted communities of color, people with disabilities, and low-income
residents, which must be addressed so that all residents have financial security, stable housing, and the
opportunity to thrive. The County conducted extensive outreach and communications efforts, including direct
mailings and print and digital communications to ensure that our most impacted residents know how to access
help. In addition, the Service Navigation Support Team was established, which is a partnership between
County agencies and CBOs to ensure residents with COVID-19 have access to basic needs while in isolation
or quarantine. County agencies partnered with culturally and linguistically diverse stakeholders to ensure
awareness and access to services that support residents’ basic needs.
Active and Thriving Community Grants
The Active and Thriving Community Grants program, using $10 million of ARPA funds, was established in
July 2021 to assist small businesses and certain nonprofits experiencing the negative economic impacts due to
the pandemic. The business sectors included in this grant are childcare providers, youth athletic organizations,
non-profit social safety net providers, out-of-school time providers, and community pools.
One Fairfax
One Fairfax is a social and racial equity policy, jointly adopted by the BOS and School
Board, committing Fairfax County Government and Fairfax County Public Schools to
intentionally consider equity when making policies and delivering programs and
services. The interlocking, systemic issues existing in areas such as housing,
employment, transportation, and health, were exacerbated by COVID-19 and continue to
limit opportunity for some County residents to fully participate in the County and regional economy. With a
continued focus on strategically addressing these inequities with bold, cross-sector approaches to promote
equitable opportunity, One Fairfax is supporting a Fairfax County where everyone will be able to thrive.
Online Resource: https://www.fairfaxcounty.gov/topics/one-fairfax
Fairfax County Strategic Plan
On October 5, 2021, the Board of Supervisors adopted a Countywide Strategic
Plan, specifically the Ten Community Outcomes, Indicators of Success, and
Proposed Strategies. These elements support the goals of the plan, which are to: 1)
Set a community-driven vision for the next 10-20 years; 2) align and integrate
existing and emerging countywide work; 3) provide a tool to focus and prioritize existing and emerging
countywide work; and 4) communicate progress on achieving measurable outcomes on behalf of the
community.
The Ten Community Outcome Areas are:
• Cultural and Recreational Opportunities
• Economic Opportunity
• Effective and Efficient Government
• Empowerment and Support for Residents Facing Vulnerability
LETTER OF TRANSMITTAL
XV County of Fairfax, Virginia-Annual Comprehensive Financial Report
• Environment
• Health
• Housing and Neighborhood Livability
• Lifelong Education and Learning
• Mobility and Transportation
• Safety and Security
With the Board’s action, staff will move into the next phase of implementing the plan.
Online Resource: https://www.fairfaxcounty.gov/strategicplan/
Diversion First
Diversion First offers alternatives to incarceration for people with mental illness,
co-occurring substance use disorders, or developmental disabilities who come into
contact with the criminal justice system for low-level offenses. The goal is to
intercede whenever possible to provide assessment, treatment, or needed support, to
prevent repeated encounters with the criminal justice system and promote a safer community with enhanced
public safety.
The Merrifield Crisis Response Center (MCRC), located at the Fairfax-Falls Church Community Service
Board’s (CSB’s) Merrifield Center, is a 24/7 assessment site which allows patrol officers to transfer custody
of nonviolent offenders to a Crisis Intervention Team (CIT) trained officer, or deputy; individuals who are
diverted receive behavioral health services in lieu of arrest. The Community Response Teams (CRT), a
public safety and health and human services partnership, provide outreach and case management to frequent
utilizers of public safety services, with the goal of better outcomes for individuals served and more efficient
utilization of public safety resources. Diversion First also provides opportunities for intervention throughout
the criminal justice system. Individuals booked into the Adult Detention Center (ADC) are screened with the
Brief Jail Mental Health Screening, and the CSB provides behavioral health services to inmates at the ADC.
The Sheriff’s Office, in collaboration with the CSB, operates the Striving to Achieve Recovery (STAR)
program, a peer led jail-based addiction recovery program focused on recognizing trauma, identifying
triggers, managing stress, and developing social supports. The court system also serves the Diversion First
population. The Supervised Release Program provides intensive supervision in the community in lieu of
incarceration. In addition, three specialty dockets are available: the Veterans Treatment Docket; the Drug
Court; and the Mental Health Docket. Individuals who are diverted to one of these dockets participate in a
structured process that integrates treatment and court supervision. Diversion First also includes community-
based services such as behavioral health treatment, housing and peer recovery support.
Online Resource: www.fairfaxcounty.gov/topics/diversion-first/
Virginia Task Force 1
Virginia Task Force 1 is a premier disaster response and humanitarian resource sponsored by the Fairfax
County Fire and Rescue Department through partnerships with the United States Agency for
International Development Bureau for Humanitarian Assistance, and the Department of Homeland Security
Federal Emergency Management Agency. Nationally, the team deploys as VA-TF1, and, internationally, as
USA-01 to natural and man-made disasters on short notice. During FY 2021, Task Force members deployed
to support response efforts for a volcanic eruption in Saint Vincent and The Grenadines, the Presidential
Inauguration, Honduras for Hurricanes Eta and Iota, Texas for Hurricane Beta, Oregon for wildfires, and
Louisiana for Hurricanes Laura, Sally, and Delta. The federal government pays the costs for training,
equipment, supplies, and personnel. Additionally, Task Force members participated in capacity building and
training of other rescue resources around the world.
Online Resource: https://www.fairfaxcounty.gov/fire-ems/
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Introductory Section (Unaudited) XVI
Technology Initiatives
The BOS and County Executive are committed to providing the necessary investment to keep pace with
emerging trends in Information Technology (IT); providing citizens, the business community, and employees
timely and convenient access to information and services through the use of technology; and using current
technologies to create new business processes and improve government efficiency. This commitment
became quite evident during the spring of 2020 and has continued in FY 2021, as COVID-19 has impacted all
facets of life in the County.
The pandemic has emphasized the importance of ensuring that all elements of the County's technology
structure are current, capable, modernized, secure, and mobile friendly. In response to the circumstances that
arose, the IT department aggressively moved to increase mobile options and improve the ability to conduct
work and County business remotely and securely. Moving forward, the County will continue to identify
additional mobility options, including, but not limited to, procuring additional mobile hardware
(laptops/tablets), identifying the viability of virtual desktop infrastructure software, analyzing the existing
network bandwidth, expanding remote access/participation, reviewing our current amount and distribution of
licenses to make sure they are fully supportive of a more mobile workforce, and reviewing whether our
current help desk services, IT equipment, and related software are all sufficient for a mobile workforce future.
Technology Strategy
County IT goals and guiding principles are reviewed periodically for applicability and relevance against new
strategic priorities, service demands, IT trends, and budget dynamics. The County’s IT governance aligns IT
investments and programs with the County’s strategic business goals. The Board’s IT Committee, senior
executive committees, and a citizen advisory committee provide oversight and guidance on technology
programs and IT investment strategies. Various steering and governance boards are focused on specific
programs and enterprise-wide projects. The County promotes the use of enterprise scale application platforms
when business processes cut across County agencies, to improve efficiency.
Multiple agencies are collaborating on a major strategic initiative to improve the speed, consistency, and
predictability of the development review processes, and improve access to data and reporting. A related
initiative is the continued digitization of electronic plans which allows for the submission and review of
building plans enabling architects, engineers and construction professionals to submit changes online by
marking-up or editing drawings 24 hours a day, 7 days a week from anywhere in the world. Other initiatives
such as the Health and Human Services Integrative Strategy is designed to harness the enormous amount of
data and facilitate efficiency in social and health services client service delivery and improve reporting across
many programs. The tax systems modernization initiatives include transformation of the IT platforms,
enhanced online self-service capabilities, and improved analytics and reporting capabilities. Lastly, the Next
Generation 9-1-1 (NG911) initiative, is a multi-phase effort, transitioning to a modern platform with text,
video, and photographs to support effectiveness in public safety.
The web strategy is recognized for its technology governance in digital solutions communication with
residents, government communities and business, e-services, and incorporation of social media capabilities in
the County agencies’ business toolkit. This multi-channel platform includes the County’s website, Interactive
Voice Response, mobile applications, emergency alerts, podcasts, RSS newsfeeds, moderated discussion
sessions, Newswire, specialized blogs, and the County’s presence on social media channels such as YouTube,
Facebook, Twitter, and others. For key public engagement tools, there are specialized blogs for County
agencies to reach extended audiences. Crowdsourcing and Alert Notification allow for enhanced reporting of
emergency information, to and from the public. Integrated with Customer Relationship Management (CRM)
technology, these programs enhance public access/experience and are the cornerstones of the County’s goals
for delivery of information, services, and engagement. The CRM platform was also used to develop an
enterprise-wide capability to manage and track Freedom of Information Act requests for responsiveness and
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timeliness. This application is used by over 32 agencies, with approximately 175 distinct users, and has
streamlined and improved compliance efforts.
Cloud Services and Cyber Security
Fairfax County has been a leader in developing an enterprise-wide approach for the
underlying technology infrastructure, using a centralized open systems architecture and
standards that support the needs of all agencies. The architecture includes cloud hosting
and co-location services. The County embraces cloud computing based on business
requirements for enabling convenient access via on-demand networks to a shared pool of
configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be
rapidly provisioned and deployed with minimal management effort or service provider interactions.
The County’s IT security infrastructure uses a “defense in-depth cyber security approach” which includes
Next Generation Firewalls, Federated Identity Management, access controls, real-time monitoring and
reporting tools, and policy enforcement with an investment strategy that is proactive and allows for new tools
and timely processes when needed. The IT security program includes data privacy, the County’s enhanced
PCI (Payment Card Industry) Compliance program, and the technical profile for e-commerce transactions.
The County’s network and security strategies facilitate building automation systems environments, support
facilities management goals, and enable furtherance of Wi-Fi services for County sites. The Department of
Information Technology continues to provide secure remote access capacity for County workers,
implementing a top tier mobile device management technology, in addition to providing flexibility and
improving worker productivity, as well as supporting County continuity of operations needs.
Online Resource: https://www.fairfaxcounty.gov/informationtechnology/it-plan
Development Initiatives
Tysons
On June 22, 2010, the BOS adopted a new Comprehensive Plan (the Plan) for the Tysons
Urban Center (Tysons). The Plan for Tysons is an essential element in the County’s
strategic efforts to manage future growth effectively and efficiently. The Plan created a vision for the
County’s largest downtown and was designed to take advantage of the Silver Line extension of the Metrorail
transit system. The transformation of Tysons into a walkable, vibrant urban center, expects to support a 2050
population of over 100,000 residents and 200,000 jobs. Tysons is fast becoming a 24-hour place where
people live, work, and play.
Monitoring the progress of the Plan is critical to ensuring that the vision for Tysons is achieved. Many of the
strategies and milestones for Tysons require the maturation of plans and development; therefore, it is crucial
to monitor progress and adjust, as necessary, to achieve intended outcomes. The Plan calls for monitoring
performance related to land use and demographics, transportation, environmental stewardship and
sustainability, public facilities, and implementation. As part of the monitoring process, the BOS charged
County staff with preparing a periodic report on Tysons. The 2020-2021 Progress Report provides
monitoring data and updates on the progress of implementing the vision for Tysons contained in the Plan.
Highlights of major accomplishments during the past year are as follows:
• 303 thousand square feet of development delivered since August 2020.
• 3.9 million square feet under construction.
• 14 Capital Bikeshare stations operating.
• 36 Tysons Area Metrorail Station Access Improvement Projects completed.
• Opening of Scott’s Run Trail, connecting Tysons East and the McLean Metro Station with Westgate Elementary School and the surrounding community.
• 3 permanent park spaces opened since August 2020.
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• Delivery of Scotts Run Fire Station #44, a proffered public facility.
• Review and analysis of the Silver Line Metro Rail ridership and other modes of transportation.
• Implementation progress on the Grid of Streets.
A culture of public outreach with a collaborative approach involving stakeholders has been critical in reaching
the milestones achieved to date. This approach remains critical to meet all the goals set forth in the Plan for
Tysons. The Tysons website serves as primary point of information about Tysons.
Online Resources:
www.fairfaxcounty.gov/tysons/annual-report
Reston Transit Station Areas
In February 2014, the Board adopted an amendment to the Plan establishing the Reston Transit Station Areas
(TSAs). The Plan amendment represented a nearly four-year planning effort led by a 45-member, Reston
Master Plan Special Study Task Force in partnership with County staff. The Plan focuses on future growth
around three new Silver Line Metrorail stations: Wiehle-Reston East; Reston Town Center; and Herndon,
along the Dulles Airport Access Road in Reston. The new Plan builds upon the foundation established for
Reston by its founder, Robert E. Simon, in the 1960s. It capitalizes on the framework originally envisioned
for the new town by creating a transit-oriented development strategy that allows for Reston’s continued
economic and physical growth, while maintaining its legacy of walkability, sustainability, innovation, and
inclusiveness. Since the adoption of the Plan in 2014, the BOS has approved applications resulting in an
additional 12.8 million square feet of non-residential development and an additional 16.1 million square feet
of residential development with approximately 2.5 million square feet of park space. As of September 2021,
the Reston Road Fund has received more than $18 million in proffered contributions.
Online Resources:
www.fairfaxcounty.gov/transportation/projects/silver-line
www.fairfaxcounty.gov/planning-development/urban-centers/reston-tsas/development-guidelines
www.fairfaxcounty.gov/planning-zoning/comprehensive-plan/special-planning-areas
https://reston-data-visualization-fairfaxcountygis.hub.arcgis.com/
Land Development Services
Land Development Services (LDS) ensures every building and site developed in Fairfax County meets
required safety, health, and environmental standards. In any given month, LDS staff process 7,064 permit
applications, on average, from gas appliance installation and residential additions, such as decks, to the
coordination of large, commercial development projects. Robust construction and development translate into
future tax revenue for the County and contribute to its economic development. In FY 2021, LDS processed
84,764 permits and conducted 223,427 site and building inspections. LDS collected $47,075,935 in total
revenue for permit and inspection fees. Large scale construction projects, such as office buildings and planned
mixed use areas – for example Reston Gateway or Tysons – continue to add to the health of the local
economy, long after buildings are completed, due to real estate taxes, employment and more. To provide
additional support to customers, LDS launched the Permit Wizard, which journey-maps 60% of all
application types. The Permit Wizard has become a prominent element on multiple LDS pages and use has
continually increased each month. Along with increased online use, LDS saw a drastic increase in phone calls,
averaging 280 calls per day; an 83% increase over call volumes prior to the pandemic. During the pandemic,
demand for residential permits remained strong as families were building new pools, decks, sunrooms, and
more, leading to an 11% increase in residential construction during FY 2021. LDS anticipates commercial
construction to increase as well, following the trajectory of the residential home improvement market.
Transportation Improvements
On December 3, 2019, the BOS approved the FY 2020 – FY 2025 Transportation Priorities Plan (TPP) to
direct County priorities for transportation projects through FY 2025. The current funding estimate for
transportation capital projects is $3.036 billion. The FY 2020 – FY 2025 TPP updates the FY 2015 – FY 2020
plan that the Board approved in 2014. The FY 2020 – FY 2025 TPP includes funds from a variety of federal,
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XIX County of Fairfax, Virginia-Annual Comprehensive Financial Report
state, local, and private sources, and includes projects previously approved by the Board, as part of other,
stand-alone funding plans.
I-66 Express Lanes
The County is working closely with Virginia Department of Transportation (VDOT) to implement express
toll lanes and other multimodal improvements on I-66, inside and outside the I-495 Capital Beltway
(Beltway). When express lanes open on I-66 outside the Beltway, the tolling inside the Beltway will apply to
vehicles with less than three people, instead of less than two people, as it does today. An additional eastbound
lane on I-66 between the Dulles Connector Road and Fairfax Drive opened in late 2020. VDOT has selected
Express Mobility Partners (EMP) to implement the express lanes and other multimodal improvements on I-66
outside the Beltway to Gainesville (University Boulevard) in Prince William County. EMP will finance,
design, build, operate and maintain the project. Improvements will also be made to the I-66/Route 28
Interchange, as a part of one of the four FY 2017 key transportation priorities. Construction activities are
underway, and the project is expected to be completed in late 2022.
Route 7 Widening Route 7 is being widened from the Reston area to the Dulles Toll Road, with VDOT administering the $314 million fully funded project. This project will improve almost seven miles of Route 7 between Reston Avenue
and Jarrett Valley Drive in Fairfax County by widening the road from four to six lanes; adding facilities for
cyclists and pedestrians; and making substantial intersection and other improvements along the corridor.
Construction began in the spring 2019. Early improvements have been completed at Baron Cameron Avenue
including a third left-turn lane from Route 7 to Baron Cameron Avenue. The project has an expected
completion date of July 2024, and construction is currently approximately 52 percent complete.
Route 28 Widening
In 2015, Fairfax, Loudoun, and Prince William Counties jointly began construction on Route 28 to relieve
traffic congestion. Significant funding for these projects comes from NVTA. $250 million is being provided
to these projects over the next several years. In the County, Route 28 was widened on the northbound lanes
of Route 28 from McLearen Road to the Dulles Toll Road, while the southbound lanes of Route 28 were
widened from the Dulles Toll Road to Route 50. One additional lane will be added in both directions from
the Prince William County border to Route 29. A Design-Build contract for widening this section of Route
28, from four to six lanes, was awarded in June 2020, and the project is anticipated to be completed by
summer of 2023.
Fairfax County Parkway Widening
The Fairfax County Parkway will be widened from four to six lanes, from Route 123 to Route 29. In
addition, the Pope Heads Road intersection will be converted to an interchange. Design work continues on
the Popes Head Road interchange. Land acquisition for the interchange began in summer 2021, and the
interchange is expected to be completed in summer 2026.
Richmond Highway Bus Rapid Transit (BRT)
The County is proceeding with implementing a BRT system along the Richmond Highway corridor, from
Huntington Metrorail Station to Fort Belvoir. In accordance with the Virginia Department of Rail and Public
Transportation Route 1 Multimodal Transportation Alternatives Analysis, the BRT schedule projects Section
1 of the project from Huntington Metrorail Station to the Sherwood Hall Lane, and Section 2 of the project
from Sherwood Hall Lane to Fort Belvoir, to be completed in 2030.
Richmond Highway Corridor Improvements
The County is working with VDOT to widen the three-mile section of Route 1 from Jeff Todd Way/Mount
Vernon Memorial Highway to Sherwood Hall Lane, from four to six lanes. This Richmond Highway
Corridor Improvements project is being administered by VDOT with support from the County. This is the
last remaining four-lane section of Richmond Highway between Fort Belvoir and Alexandria. The project
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Introductory Section (Unaudited) XX
will provide continuous pedestrian and bicycle facilities within this three-mile section. The project will also
construct a median to accommodate the Richmond Highway BRT project that will be implemented as part of
the County’s separate Richmond Highway BRT project. The design public hearing was held in March of
2019. The project will be implemented in two phases. Phase one spans Richmond Highway between Jeff
Todd Way and Frye Road. Construction for phase one is anticipated to start in 2025 with completion by
2028. Phase two spans Richmond Highway between Frye Road and Sherwood Hall Lane. Construction for
phase two is anticipated to start in 2027 with completion in 2029.
Environmental Vision
In the County, environmental impact decisions are guided by the County’s
policy framework, described in the Board’s Environmental Vision, first adopted
in 2004 and updated in 2017. The document addresses seven core areas: land
use; transportation; water; waste management; parks and ecological resources;
climate and energy; and environmental stewardship.
Online Resource: https://www.fairfaxcounty.gov/environment/environmental-vision
Climate Planning and Action
In FY 2020, the Office of Environmental and Energy Coordination (OEEC) was established. The OEEC’s
mission is to lead the County’s cross-organizational development and implementation of environmental and
energy policies, goals, programs, and projects, including an operational energy strategy and two major climate
planning initiatives, described below. The OEEC supports a more comprehensive and effective approach to
implementing the goals, objectives, and targets of the BOS’ policies, goals, and initiatives. These include the
Environmental Vision, the County’s Comprehensive Plan, the Fairfax County Operational Energy Strategy,
and the action items described in the 2019 and 2020 Fairfax Green Initiatives Board Matters.
Online Resource: https://www.fairfaxcounty.gov/environment-energy-coordination/
https://www.fairfaxcounty.gov/environment-energy-coordination/fairfax-green-initiatives
To support the climate and energy objectives included in the Environmental Vision and Fairfax Green
Initiatives, the OEEC is overseeing two community-wide climate planning and action initiatives to address
climate change, its various impacts, and related considerations, such as equity. The first of these, the
Community-wide Energy and Climate Action Plan (CECAP), is focused on climate mitigation and reducing
greenhouse gas emissions in the County. The CECAP Working Group, an advisory body to the BOS made up
of representatives and experts from community groups, organizations, and individuals from each magisterial
district, was formed to consider climate mitigation goals, strategies and actions specific to Fairfax County.
With support from the OEEC, the Metropolitan Washington Council of Governments (COG), and a
consultant, and with feedback from the greater community, the Working Group met between January 2020
and May 2021 to identify 12 strategies, numerous actions, and long-term and interim goals, including the goal
that the County achieve carbon neutrality by 2050.
The OEEC is also overseeing Resilient Fairfax, the County’s first Climate Adaptation and Resilience Plan.
The Resilient Fairfax planning initiative is identifying strategies to ensure the Fairfax County community can
better address the impacts of climate change. This planning initiative also entails the development of local
climate projections, an audit of existing policies, plans and programs, and a vulnerability and risk assessment
to determine the extent to which County populations, community assets and services, local infrastructure, and
County operations will be impacted by climate change. The OEEC is soliciting feedback from numerous
County agencies, the broader public, an Infrastructure Advisory Group and Community Advisory Group on
components of the planning process.
Online Resource: https://www.fairfaxcounty.gov/environment-energy-coordination/climate-planning-action
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XXI County of Fairfax, Virginia-Annual Comprehensive Financial Report
Sustainable County Operations
The BOS policies and goals recognize that environmental quality is essential for
everyone living and working in the County. A healthy environment enhances the
quality of life and preserves the vitality that makes the County a special place to live
and work. The County’s Sustainability Initiatives report describes the efforts to
promote sustainability and protect the environment. It provides an overview of many
of the programs and projects carried out by the County, and its partners, and details
significant efforts made over time to reduce the County’s operational demand for
water and energy through efficiency, conservation, and education.
Specific goals, targets, and actions to achieve sustainable County operations are
included in the Fairfax County Operational Energy Strategy. In FY 2021, the County initiated an update to its
Energy Strategy, first adopted in 2018. Accelerated goals, targets, and actions were developed across several
focus areas, including energy use and efficiency, green buildings, renewables, fleet electrification, and waste
management and recycling. These updates were developed in support of a goal that County operations be
energy carbon neutral by 2040, a goal first recommended by Fairfax County and Fairfax County Public
Schools’ Joint Environmental Task Force in its October 2020 Final Report.
Online Resource: https://www.fairfaxcounty.gov/environment-energy-coordination/sustainability-initiatives
https://www.fairfaxcounty.gov/environment-energy-coordination/energy-strategy
Environmental Improvement Program
The Environmental Improvement Program (EIP) supports the BOS’ Environmental Vision and other
environmental and energy policies and goals. The EIP provides the County Executive and BOS with
environmental and energy action-oriented opportunities and initiatives that support
these BOS policies and goals. EIP projects are selected based on a formal project
selection process supported by the Environmental Quality Advisory Council. The
EIP projects approved for funding in FY 2021 included several projects proposed
by the Fairfax County Park Authority (FCPA), including its Invasive Management
Area program, the restoration of 12.5 acres of FCPA meadows, and the installation
of heating, ventilation, and air conditioning (HVAC) controls at non-staffed
facilities. Other EIP projects funded include the first phase of a natural landscaping initiative at the Fairfax
County Government Center, a Composting Pilot Program for County employees, and a new HomeWise
Program, to train volunteers to perform simple energy efficiency upgrades in low- and moderate-income
residential housing units in the County.
Online Resource: https://www.fairfaxcounty.gov/budget/sites/budget/files/assets/documents/fy2021/adopted/volume2/30015.pdf
Affordable Housing
The mission of the Fairfax County Redevelopment and Housing Authority (FCRHA) is to initiate and provide
opportunities for Fairfax County residents to live in safe, affordable housing and to help develop, preserve,
and revitalize communities through fiscally responsible and open processes. Nearly 20,000 County residents
–including families, individuals, veterans, seniors, people with disabilities, and those with specialized housing
needs– are housed in privately owned and FCRHA-owned properties through a variety of housing programs.
Many more live in privately owned affordable housing developed with FCRHA financing and provided
through inclusionary zoning policies administered by these agencies. Additionally, the FCRHA and the
Department of Housing and Community Development (HCD) administer resident assistance programs to
promote independence, self-sufficiency, and housing stability.
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• Housing Assistance Programs: From emergency shelter for individuals and families experiencing homelessness to rental housing and, eventually, homeownership, the FCRHA and HCD provide
critical assistance to households across the housing spectrum to obtain safe, decent, stable, and
affordable housing.
o Emergency Shelter and Supportive Housing Programs: In FY 2021, the County’s Office to Prevent and End Homelessness merged with HCD to establish a single agency that would
be able to address the full range of housing needs from short-term emergency shelter to long-
term affordable housing. In FY 2021, the County sheltered 2,650 residents through its
emergency shelter and transitional housing projects. The County was able to assist 41 percent
of those served to exit to permanent housing destinations.
o Rental Housing Subsidy Programs: The County administers several local, state, and federal rental subsidy programs to assist low- and moderate-income households afford a place to call
home. The County administers 4,139 rental housing subsidy vouchers awarded through both
state and federal programs. Additionally, the FCRHA itself owns nearly 4,000 units of
affordable rental housing, including 3,028 units of multifamily housing, 482 units of
independent senior housing, 112 beds of assisted living, and 205 units/beds of specialized
housing - including a manufactured housing community with 115 pads.
o Homeownership Programs: For more than 40 years, The County has provided homeownership assistance to thousands of low- to moderate-income homebuyers. Programs
afford qualified homebuyers access to for-sale homes at below-market prices; avenues for
down payment assistance, lower interest rates, and reduced mortgage principal; and pre- and
post-purchase counseling. In FY 2021, the County assisted 47 new homeowners in
purchasing a home through the First-Time Homebuyer Program and helped facilitate down
payment assistance for 173 households through state and federal programs.
• Affordable Housing Development: In 2019, the BOS adopted a countywide goal to produce a minimum of 5,000 new affordable units to households earning up to 60 percent of Area Median
Income (AMI) by the year 2034. Since the adoption of that goal, the affordable housing
development pipeline has grown to include 1,867 new units of affordable housing that have been
completed or are in various stages of development. The County continues to grow this pipeline
through utilizing public-private partnerships to construct new units of housing on County-owned
land; pursuing opportunities to construct new FCRHA-owned units; investing local, state, and
federal funding in private affordable housing development; and administering inclusionary zoning
policies that encourage the incorporation of affordable units in market-rate housing development
projects.
• Affordable Housing Preservation: The preservation of affordable rental housing has long been a concern of the BOS and the FCRHA, and in 2019, these bodies adopted a commitment of “No
Net Loss” when it comes to Fairfax County’s stock of more than 15,000 units of committed
affordable housing. As of May 2021, 1,268 housing units have been preserved or are in the
preservation pipeline for households at or below 60% of AMI. As the preeminent housing
financing agency in the County, the FCRHA issues loans and administers federal housing funds
to support the private acquisition and rehabilitation of committed affordable housing units in all
areas of the County.
• Resident Services: For the FCRHA, the work of affordable housing extends beyond the business of construction, property management, real estate finance and investment, application
administration and so on. It is deeply rooted to the individual, the family, and the community and
to providing tools, training, and resources to help residents achieve housing stability and self-
sufficiency. Through the PROGRESS Center, residents can find access to resources and training
to improve their financial management and repair credit, obtain employment, develop skills, and
advance education to better compete for higher paying jobs in the local workforce. Staff in the
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PROGRESS Center can also help connect participants to a variety of available County- and
community-based resources to help them succeed. The FCRHA also provides the Home Repair
for the Elderly Program which provides free skilled labor and up to $500 in materials cost at no
charge to qualified applicants to complete small handyman-sized projects for their home.
Throughout fiscal year 2021, staff have worked tirelessly to adapt every function of HCD’s and the FCRHA’s
operations to meet the challenge of providing essential services and continuing to advance affordable housing
development and preservation efforts amid the COVID-19 pandemic. The “Moving to Work” designation
provided by the U.S. Department of Housing and Urban Development to high-performing housing authorities
has helped significantly in enabling the FCRHA to make quick adjustments to rapidly evolving conditions.
Quality Communities
Fairfax County provides residents and visitors a robust array of recreational opportunities and diverse
experiences, as well as protecting natural and cultural resources within the community, and strives to make all
parks, programs, and other assets accessible to all.
Parks
The Fairfax County Park Authority (FCPA), ranked among top park systems in the nation, continues to
respond to the significant health and safety concerns, social and equity challenges, as well as financial tests
posed by the pandemic. FCPA pivoted appropriately to address the needs of the community by
operationalizing new recreational options via virtual and outdoor programming, creating effective safety
protocols, and managing record crowds who turned to parks as the safest places to gather and spend time
outdoors.
Of major significance was the Board of Supervisors’ renewal of the Ordinance that established the FCPA on
July 13, 2021. The Ordinance runs for 30 years, ending in 2051. Additionally, the BOS approved a
Memorandum of Understanding that updates the responsibilities of both parties for the interactive operations
of the FCPA and the County, which will be reviewed every five years. The updates include addressing One
Fairfax, support and coordination with the County’s Strategic Plan and a change in the County liaison to the
Health and Human Services Deputy County Executive. This allows the FCPA to continue its tradition of
excellence in serving the residents of the County.
FCPA’s mission is to enrich the quality of life for all members of the community through an enduring park
system that provides a healthy environment, preserves natural and cultural heritage, offers inspiring
recreational experiences, and promotes healthy lifestyles. FCPA owns and manages 427 parks totaling 23,632
acres of parkland, which is approximately 9.4% of the land in Fairfax County. The park system is rich in
amenities that include ownership/maintenance of nine recreation centers, eight golf courses, an ice skating
rink, 11 dog parks, 228 playgrounds, 665 public garden plots throughout the community, seven nature centers,
three equestrian facilities, 452 Fairfax County Public School athletic fields, 44 synthetic turf athletic fields
(including two diamond fields and 42 rectangular fields), 260 FCPA athletic fields, 62 picnic shelters, 16
volleyball courts, 252 tennis and racquetball courts, a growing number of pickleball courts, 10 historic sites,
two water parks, a horticultural center, and more than 334 miles of multimodal trails. The Park Authority
embraces its dual role as a provider of active recreation including fitness and wellness opportunities as well as
serving as stewards and interpreters of historic sites, cultural treasures, and natural resources.
At the core of FCPA success is planning, and a host of initiatives that help to prepare it for the future. The
adoption of the FCPA’s first Parks and Recreation system master plan two years ago set the stage for meeting
the needs of a changing community over the next decade. With a ten-year horizon, The Great Parks, Great
Communities Parks and Recreation System Master Plan created a foundation for progress.
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Library
More than 500,000 people hold Fairfax County Public Library (FCPL) cards to borrow and download books,
conduct in-person and online research, use free library Wi-Fi and computers, and enjoy a variety of
programming. For every $1 invested in the library, Fairfax residents saw a return on investment of $5.14 in the
last fiscal year. FY2021 presented opportunities for
library staff to create new avenues through which to
offer services amid the COVID-19 pandemic. In
FY2021, FCPL offered express services during
which visitors practiced social distancing and
adhered to time limits for 256 days, curbside pickup
and virtual services only for 83 days, and operated
under a “new normal” service model for 26 days.
Cardholders utilized curbside pickup 171,400 times
during FY2021.
Pre-pandemic, FCPL provided spillover wireless
connectivity outside branch buildings. During the
pandemic, residents required strong internet
connections to work and to educate themselves, and
we knew we could provide better access. As of April 2021, all public branches without parking garages have
purposeful, expanded exterior wireless access.
When FCPL branches resumed full operations June 5, 2021, visitors began enjoying new hours. Regional
branches are now open 10 a.m. to 9 p.m. Monday through Wednesday, and 10 a.m. to 6 p.m. Thursday through
Sunday. Community branches are now open 10 a.m. to 9 p.m. Monday and Tuesday, and 10 a.m. to 6 p.m.
Wednesday through Saturday. Community branches are not open on Sundays. These new hours allow FCPL
staff to offer in-person programs on several weekday evenings, give cardholders time to pick up or drop off
materials outside nine-to-five business hours, and enable community organizations to reserve available public
spaces on evenings and weekends.
A partnership with Fairfax County Public Schools (FCPS) took on new significance in FY 2021. In 2018,
FCPL piloted the Library Equity Access Pass (LEAP) program in one school pyramid. In October 2020,
FCPL and FCPS expanded LEAP to every student enrolled in FCPS. What began as a program intended to
provide another option if the child’s regular library card was blocked has blossomed during the pandemic into
an important avenue of access in support of students’ virtual and in-person learning.
During FY 2021, FCPL saw circulation of more than 10 million, with e-circulation up 17% to more than 2.7
million. FCPL is one of the top 40 active libraries in North America on the e-reading tool Overdrive, where
cardholders checked out items from FCPL’s digital collection more than 2.6 million times.
ABOUT FAIRFAX COUNTY
Governmental Structure
Fairfax County is in the northeastern corner of Virginia and encompasses an area of 407 square miles,
including land and water. The County is part of the Washington, D.C., metropolitan area, which includes
jurisdictions in Maryland, Northern Virginia, and the District of Columbia.
LETTER OF TRANSMITTAL
XXV County of Fairfax, Virginia-Annual Comprehensive Financial Report
The County government is organized under the Urban County Executive form of government (as defined
under Virginia law). The governing body of the County is the BOS, which sets policy for the administration
of the County. The BOS consists of 10 members: a chairman, elected at-large for a four-year term and one
member from each of nine districts, elected for a four-year term by the voters of the district in which each
member resides. The BOS appoints a County Executive to act as the administrative head of the County. The
County Executive serves at the pleasure of the Board, carries out the policies established by the BOS, directs
business and administrative procedures, and recommends officers and personnel to be appointed by the BOS.
Cities and counties in Virginia are discrete units of government that under Virginia law may not be
overlapping districts. Fairfax County surrounds the City of Fairfax and is adjacent to the City of Falls Church
and the City of Alexandria. Properties within these cities are not subject to taxation by the County, and the
County generally is not required to provide governmental services to their residents. The County does;
however, provide certain services to these cities’ residents pursuant to intermunicipal agreements.
The incorporated towns of Clifton, Herndon, and Vienna are underlying units of government within the
County. The ordinances and regulations of the County apply, with certain limitations prescribed by State law.
Properties in these towns are subject to County taxation, and the County provides certain services to their
residents. These towns may incur general obligation bonded indebtedness without the approval of the
County.
Employment
Businesses in Fairfax County include corporate and regional headquarters, information technology firms,
sales and marketing offices, and business services. Local businesses create employment in such diverse areas
as computer software development and systems integration, internet related services, telecommunications,
wholesale and retail trade, defense and homeland security, and financial services. A high proportion of jobs
in the County are in the high wage, highly skilled information technology and professional services sectors.
Highlights are as follows.
• The technology sector in Fairfax County attracts new talent and investments from across the nation. Fairfax County is home to 8,700 technology-focused enterprises that deliver a full spectrum of high-
end services and solutions to government, industry, and consumer markets worldwide. From cloud
computing and software development to artificial intelligence and data analytics, businesses and
research teams in Fairfax County are defining the cutting edge.
• Eleven Fairfax County based companies are on the Fortune 500 list including Beacon Roofing Supply; Booz Allen Hamilton Holding; Capital One Financial; DXC Technology; Freddie Mac;
General Dynamics; Hilton Worldwide; Leidos Holdings; Northrop Grumman; NVR; and SAIC.
• 430 international companies are based in Fairfax County including global giants like Rolls-Royce; Airbus; Samsung; CGI; Volkswagen; Hexaware; and Israel Aerospace Industry North America.
Online Resource: https://www.fairfaxcountyeda.org/publications/
Demographic Information
Based on the latest information from the County’s Department of Management and Budget’s Economic,
Demographic and Statistical Research (EDSR) data for 2020, the County’s estimated population was 1.17
million. Approximately 40 percent of all County residents, five years or older, spoke a language other than
English at home. The County had approximately 26 percent of its population under the age of 20 years, about
33 percent were between age of 20 to 44 years, approximately 27 percent were between the age of 45 to 64
years and age 65 years and over made up about 14 percent. The County is majority minority with almost 53
percent of the County’s population consisting of racial/ethnic minorities according to the 2020 Decennial
Census. Additionally, EDSR projects that the population of Fairfax will grow to 1.20 million by the year
LETTER OF TRANSMITTAL
Introductory Section (Unaudited) XXVI
2025. Also, as reported in the 2019 ACS, Fairfax County had an estimated annual median household income
of $128,374 compared to $76,456 in the Commonwealth of Virginia, and $65,712 in the United States. The
following charts illustrate the County’s population age distribution and its racial/ethnic composition based on
data for 2020.
Online Resources: https://data.census.gov/cedsci/all?q=2019%20American%20Community%20Survey%20Fairfax%20County%20virginia
https://www.fairfaxcounty.gov/demographics/fairfax-county-general-overview
Public Schools
FCPS is one of the largest school divisions in the U.S. with 198 schools and centers. FCPS serves a diverse
student population of more than 178,000 students in grades, prekindergarten through 12, speaking over 200
languages. Over 27 percent of the total student population is Economically Disadvantaged; 14.4 percent are
reported as Students with Disabilities; and more than 26 percent of students are English Learners.
Demographically, 36.8 percent of FCPS students are White, 27.1 percent are Hispanic, 19.8 percent are
Asian, 10 percent are Black, 5.9 percent are two or more races, 0.3 percent are American Indian, and 0.1
percent are Native Hawaiian, (Source: 2020 Fall Membership by Subgroup as reported in the Virginia
Department of Education School Quality Profile).
Nearly 95 percent of FCPS students graduate on time (in four years of high school), and more than 92 percent
plan to pursue post-secondary education. FCPS students can take Advanced Placement (AP) or International
Baccalaureate (IB) classes in high school; the school system offers the IB middle years program and the IB
primary years program in select schools. The Class of 2021 had 214 students, from 16 high schools, named
semifinalists by the National Merit Scholarship Corporation.
Thomas Jefferson High School for Science and Technology is a part of FCPS. It is also a regional magnet
Governor’s School for Science and Technology in Northern Virginia. On a national level, it is the top ranked
high school per U.S. News and World Report Best High Schools Rankings for 2021. Rankings are based on a
school’s performance on state-required tests, graduation, and how well they prepare students for college.
Online Resource: https://www.fcps.edu/about-fcps
https://www.usnews.com/education/best-high-schools/articles/us-news-ranks-best-high-schools
https://www.schooldigger.com/go/VA/schoolrank.aspx?level=3
Colleges and Universities Higher education plays a critical role in developing a highly skilled and
competitive workforce. There are 10 colleges and universities either
based or operating in the County. Among the larger institutions are
George Mason University (GMU) which is Virginia’s largest four-year
research university, and Northern Virginia Community College (NVCC)
which is one of the nation’s largest community colleges. Combined, GMU and NVCC serve approximately
LETTER OF TRANSMITTAL
XXVII County of Fairfax, Virginia-Annual Comprehensive Financial Report
89,000 students. Also, at the Northern Virginia Center, there are satellite campuses for Virginia Polytechnic
Institute and State University, known as Virginia Tech (VT), and University of Virginia (UVA). VT has a
graduate program and UVA has a School of Continuing and Professional Services.
Online Resource: https://www.fairfaxcountyeda.org/publications/colleges-and-universities/
FINANCIAL INFORMATION
All the financial activities of the reporting entity are included within this report. As used here, the reporting
entity comprises the primary government (County of Fairfax, as legally defined) and its component units.
Under GASB pronouncements, component units are legally separate entities for which the primary
government is financially accountable. The component units of the County include both blended component
units and discretely presented component units. Blended component units, although legally separate entities,
are in substance part of the primary government’s operations and are included as part of the primary
government. Accordingly, the Solid Waste Authority of Fairfax County, the Small District One, the Small
District Five, and the Mosaic Community Development Authority are reported as part of the primary
government. Discretely presented component units are reported in a separate column in the government-wide
financial statements to emphasize that they are legally separate from the primary government and to
differentiate their financial position, changes in financial position, and cash flows from those of the primary
government. FCPS, FCRHA, FCPA, and FCEDA are reported as discretely presented component units. For
additional information regarding the basic financial statements and the County’s financial position, refer to
the Management’s Discussion and Analysis section of this report.
INDEPENDENT AUDIT
The County’s financial statements have been audited as required by the Code of Virginia and received an
unmodified opinion by the accounting firm of Cherry Bekaert LLP. In addition to meeting the requirements
of the state statutes, the audit was designed to meet the requirements in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and Title 2 of the
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards. The report of the independent auditors on the basic financial statements
can be found in the Financial section of this annual report. The Single Audit Report, issued separately,
contains the independent auditor’s reports related specifically to the audit of expenditures of federal awards.
Ten Principles of Sound Financial Management
The keystone of the County’s maintenance of fiscal integrity and sound financial management is the approval
and continuing commitment of the BOS to the Ten Principles of Sound Financial Management. These
principles, the policy context in which financial decisions are considered and taken, relate primarily to the
integration of capital planning, debt planning, cash management, and productivity as a means of ensuring
prudent and responsible allocation of the County’s resources. In FY 2016, the principles were reviewed by
the BOS and have been revised to place additional emphasis on building and maintaining reserves to increase
flexibility to deal with both expected and unanticipated events.
The County maintains a self-managed investment program under the direction and oversight of an Investment
Committee. The committee is comprised of the Chief Financial Officer, the Director of the Department of
Finance, the Director of the Department of Tax Administration, and certain employees within the Department
of Finance. Guided by a formal investment policy, the committee monitors daily investment activity and
LETTER OF TRANSMITTAL
Introductory Section (Unaudited) XXVIII
evaluates investment strategies monthly. The County’s investment policy is subjected to annual peer review
by the Association of Public Treasurers of the United States and Canada.
A summary listing of the Fairfax County Ten Principles of Sound Financial Management is as follows:
1. Planning Policy 2. Annual Budget Plans and Reserves 3. Cash Balances 4. Debt Ratios 5. Cash Management 6. Internal Controls 7. Performance Measurement 8. Reducing Duplication 9. Underlying Debt and Moral Obligations 10. Diversified Economy
The full text of the Fairfax County Ten Principles of Sound Financial Management is published annually
within the County’s adopted budget overview.
Online Resource:
https://www.fairfaxcounty.gov/budget/sites/budget/files/assets/documents/fy2022/adopted/overview/long-
term-financial-policies-tools.pdf
Budgetary and Accounting Controls
The Code of Virginia requires that the County adopt a balanced budget. The County maintains extensive
budgetary controls at certain legal, managerial, and administrative levels. The adopted Fiscal Planning
Resolution places legal restrictions on expenditures at the agency or fund level. Managerial budgetary control
is maintained and controlled at the fund, department, superior commitment item grouping or project level.
Any revisions that alter the total expenditures of any agency or fund must be approved by the BOS. The
County’s budget is adopted by May 15 for the coming fiscal year, which commences on July 1. Three budget
reviews during the year, the Carryover Review, Mid-Year Review, and Third Quarter Review, serve as the
primary mechanisms for revising appropriations. A synopsis of proposed changes is advertised, and a public
hearing is held prior to the adoption of amendments to the current year budget when adjustments exceed one
percent of total expenditures.
Since 1999, the County has maintained a Revenue Stabilization Fund, included in the General Fund for
reporting purposes, to provide a mechanism for maintaining a balanced budget without resorting to tax
increases and expenditure reductions that aggravate the stresses imposed by the cyclical nature of the
economy. The BOS established the fund with the condition that it will not be used as a method of addressing
the demand for new or expanded services but will be used as a financial tool only in the event of an economic
downturn, and then within strict parameters. The Revenue Stabilization Fund is separate and distinct from the
County’s Managed Reserve, which was established initially in FY 1983. As part of the adoption of the
FY 2016 Adopted Budget Plan, the BOS updated the County’s Ten Principles of Sound Financial
Management to increase the reserve targets for both the Revenue Stabilization Reserve and the Managed
Reserve. The target level of the Revenue Stabilization Reserve is five percent of General Fund
disbursements, and the target level of the Managed Reserve is four percent of General Fund disbursements.
In addition, the BOS established a new Economic Opportunity Reserve with a target balance equal to one
percent of General Fund disbursements. This fund acts as a revolving reserve to address opportunities that are
identified as priorities of the BOS. The total target balance for these three reserves is ten percent of General
Fund disbursements. As of June 30, 2021, the Revenue Stabilization Fund, Managed Reserve and Economic
Opportunity Reserve balances were $228,917,963, $182,576,859, and $46,527,372, respectively.
LETTER OF TRANSMITTAL
XXIX County of Fairfax, Virginia-Annual Comprehensive Financial Report
The County’s management is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure
adequate accounting data are compiled to allow for the preparation of financial statements in conformity with
accounting principles generally accepted in the U.S. 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 the cost of a control should not exceed the benefits likely to be derived. The evaluation of
costs and benefits requires estimates and judgments by management. As a recipient of federal and state
financial assistance, the County also is responsible for maintaining an adequate internal control structure to
ensure and document compliance with applicable laws and regulations related to these programs. This
internal control structure is subject to periodic evaluation by management, and the Internal Audit Office staff.
Debt Administration
The County borrows money primarily by issuing general obligation bonds to finance major capital projects.
Bond financing spreads the cost of land acquisition and building construction over a period of many years,
rather than charging the full cost to current taxpayers. By law, general obligation bonds must be approved in
advance by County voters in a referendum. The County continues to maintain its status as a top-rated issuer
of tax-exempt securities. The County has the highest credit ratings possible for a local government for its
general obligation bonds: Aaa from Moody’s Investors Service, Inc.; AAA from Standard and Poor’s
Corporation; and AAA from Fitch Investor Service. The County has had an Aaa rating since October 1975,
when it first received a rating from Moody’s. Standard and Poor’s Corporation first gave the County an AAA
rating in October 1978, and the County has maintained that rating. The Fitch Investor Service rating was first
received in the spring of 1997 and has been maintained since then. Factors contributing to the County’s high
credit rating include recognized excellence in financial management, superior tax collection rates, low debt
ratios, and high-income levels. As of January 2021, only 13 of 50 states, 49 of 3,143 counties, and 33 of
19,429 cities in the U.S. had such high bond ratings from all three rating agencies. These high credit ratings
enable the County to sell bonds at interest rates significantly lower than those of most municipalities,
resulting in substantial savings for County taxpayers throughout the life of the bonds. The details of bonds
outstanding and bonds authorized-but-not-issued are shown in Note J of the financial statements. Tables 3.1
through 3.5 of the Statistical Section provide detailed historical information regarding the debt position and
debt service requirements of the County.
AWARDS
Certificate of Achievement for Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA) awarded the County
with the Certificate of Achievement for Excellence in Financial Reporting for its FY 2020 Financial Report.
The Certificate of Achievement is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government financial reports. To be awarded a Certificate of
Achievement, a government unit must publish an easily readable and efficiently organized annual financial
report. This report must satisfy both generally accepted accounting principles and applicable legal
requirements. The County has received the Certificate of Achievement since 1977.
Award for Outstanding Achievement in Popular Annual Financial Reporting
GFOA also awarded the County with the Award for Outstanding Achievement in Popular Annual Financial
Reporting for the FY 2020 Popular Annual Financial Report (PAFR). The PAFR is designed to offer those
with a general interest in the County’s financial activities a broad, high-level view of select data from the
Annual Comprehensive Financial Report (ACFR), presented in an easily readable format. The GFOA PAFR
award program annually recognizes high quality reports that meet the GFOA’s criteria for reader appeal,
understandability, dissemination, and other related requirements.
LETTER OF TRANSMITTAL
Introductory Section (Unaudited) XXX
Distinguished Budget Presentation Award
The GFOA has presented the Award for Distinguished Budget Presentation to the County for its annual
budget for each year since FY 1985. To receive this award, a governmental unit must publish a budget
document that meets program criteria as a policy document, operations guide, financial plan, and
communications device.
International City/County Management Association (ICMA) Award for Performance Measurement
Since 2002, the County has received ICMA’s highest award for performance management. In 2021, the
County was one of only 28 jurisdictions nationwide to earn this level of recognition for measuring
performance and using that data to improve programs and services.
Investment Policy Award
The Association of Public Treasurers of the United States and Canada has awarded the County certification
for its investment policy, confirming that the County meets the high public investment standards set forth by
the Association. This award has been received since 1998.
National Association of Counties (NACo) 2021 Achievement Awards
Fairfax County received two National Association of Counties 2021 Achievement
Awards, recognizing effective and innovative programs that contribute to and enhance
county government in the United States.
• ECO Video Series - The ECO video series is produced by Fairfax County freshwater ecologists in the
Watershed Education and Outreach (WEO) section and has become an invaluable and inclusive tool
that connects students and teachers to their local environment. During recent periods of virtual
schooling, these videos have served as highly requested items by Fairfax County Public Schools
(FCPS) and have provided an opportunity for ecologists to reach more students virtually than
previously possible in person. The prerecorded videos allow students and teachers to work at their
own pace, allow for real-time, interactive labs and provide guided virtual programming.
Digital Counties Survey & Technology Awards
The County was recognized in the top ten in the Center for Digital Government’s 2020
Digital Counties Survey, as a technological innovator, in the category of jurisdictions
with populations greater than 1,000,000. The County has been in the top ten, in sixteen
of the last seventeen years of the award, and in the top three, nine times.
LETTER OF TRANSMITTAL
XXXI County of Fairfax, Virginia-Annual Comprehensive Financial Report
ACKNOWLEDGMENTS
We express our sincere appreciation to all staff who contributed to this report, especially the members of the
ACFR Project Team in the Financial Reporting Division of the Department of Finance, who prepared and
compiled this report. We commend them for their professionalism, hard work, virtual input, and continued
efforts to improve this report. In addition, we acknowledge the cooperation and assistance of each County
department throughout the year in the efficient administration of the County’s financial operations.
This ACFR reflects our commitment to the residents and businesses of Fairfax County, the Board of
Supervisors, and all interested readers of this report to provide information in conformance with the highest
standards of financial reporting.
Respectfully,
Bryan J. Hill Christina C. Jackson Christopher J. Pietsch
County Executive Chief Financial Officer Director of Finance
XXXIIntroductory Section (unaudited)
County of Fairfax, Virginia Urban County Executive Form of Government
As of June 30, 2021
Board of Supervisors
Jeffrey C. McKay, Chairman At-Large Penelope A. Gross, Vice Chairman Mason District Daniel G. Storck Mount Vernon District Dalia A. Palchik Providence District Walter L. Alcorn Hunter Mill District Kathy L. Smith Sully District James R. Walkinshaw Braddock District Rodney L. Lusk Lee District Patrick S. Herrity Springfield District John W. Foust Dranesville District
Clerk to the Board Jill Cooper
County Executive Bryan J. Hill
Deputy County Executives Joseph M. Mondoro, CFO
Rachel O’Dwyer Flynn Christopher Leonard
David M. Rohrer
Department of Management and Budget Department of Finance Christina C. Jackson, Director Christopher J. Pietsch, Director
Department of Tax Administration Procurement and Material Management Jaydeep Doshi, Director Cathy A. Muse, Director Office of the County Attorney Office of Public Affairs Elizabeth D. Teare, County Attorney Tony Castrilli, Director
Office of the Internal Auditor Independent Auditor Sharon A. Pribadi, Director Cherry Bekaert LLP
Directory of Officials
XXXII County of Fairfax, Virginia Annual Comprehensive Financial Report
XXXIIIIntroductory Section (unaudited)
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XXXIV County of Fairfax, Virginia Annual Comprehensive Financial Report
ACFR Project Team
This report was prepared by:
County of Fairfax, Virginia Department of Finance
12000 Government Center Parkway, Suite 214 Fairfax, Virginia 22035
(703) 324-3120, TTY 711 www.fairfaxcounty.gov
Director Christopher J. Pietsch, CPFO, CIA, CBA
Deputy Directors Tanya D. Burrell, CPA, MPA
Jerry Wilhelm
ACFR Project Team Richard M. Modie Jr., Chief, Financial Reporting Division
Jennifer Rosales, Financial Reporting Manager Javed Khan, CPA, Financial Reporting Manager
Franklin L. Fout, CPA, Financial Reporting Manager
Michelle Ashcraft, CPA Betty Barnuevo, CPA Regina S. Magalong Jennifer Minix, CPA
Clyde Prentice Jr. Nanette A. Velasco
Amy Wang Xuan Wang
Grants Project Team Asiya Akhtar, Financial Reporting Manager
Nashwa Abualsaad Dung La
With the support and assistance of many others.
Special Thanks to Carl Pagani, Department of Finance
XXXVIntroductory Section (unaudited)
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 the County for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2020. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR 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. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. The County has received a Certificate of Achievement 43 times since 1977.
Government Finance Officers
Association Award
Government Finance Officers Association
Certificate of Achievement for Excellence
in Financial Reporting
Presented to
County of Fairfax Virginia
For its Comprehensive Annual Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
Financial Section
T
he Financial Section includes the independent auditors’ report, management’s discussion
and analysis, basic financial statements, including the accompanying notes, required supplementary information, and other supplementary information.
cbh.com
Report of Independent Auditor
To the Board of Supervisors County of Fairfax, Virginia
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 the County of Fairfax, Virginia (the “County”) as of and for the year ended June 30, 2021, 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.
Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. 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 and the Specifications for Audits of Counties, Cities, and Towns, issued by the Auditor of Public Accounts of the Commonwealth of Virginia. Those standards and specifications require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s 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, 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, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
1
Emphasis of Matter Change in Accounting Principle As discussed in Note M to the financial statements, the County adopted the provisions of Governmental Accounting Standards Board (the “GASB”) Statement No. 84, Fiduciary Activities, effective July 1, 2020. As a result, the related net position of the fiduciary funds and aggregate discretely presented component units has been restated. Our opinions are not modified with respect to this matter.
Restatement As discussed in Note N to the financial statements, the net position of the aggregate discretely presented component units as of July 1, 2020 has been restated from the previously issued financial statements to reflect the correction of an error. Our opinions are not modified with respect to this matter.
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management’s discussion and analysis on pages 5 to 19 and the required supplementary information and notes to the required supplementary information on pages 151 to 173 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 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 introductory section, other supplementary information section, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The other supplementary information section is the responsibility of management and was derived from and relates 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. In our opinion, the other supplementary information section is fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections 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.
2
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 15, 2021, 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 results of that testing, and not to provide an opinion on the effectiveness of the County’s internal controls 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.
Tysons Corner, Virginia November 15, 2021
3
4
Management’s Discussion and Analysis
he Management’s Discussion and Analysis subsection provides a narrative introduction
to and overview and analysis of the basic financial statements. It includes a description of the government-wide and fund financial statements,
T
as well as an analysis of the County of Fairfax’s overall financial position and results of operations.
FINANCIAL SECTION 5
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
This section of the County of Fairfax, Virginia’s (the County) Annual Comprehensive Financial Report
(ACFR) presents our discussion and analysis of the County’s financial performance during the fiscal year that
ended on June 30, 2021. We encourage readers to consider the information presented here in conjunction
with additional information that we have furnished in our Letter of Transmittal, located in the Introductory
Section of the ACFR.
FINANCIAL HIGHLIGHTS
Highlights for Government-wide Financial Statements
The government-wide financial statements report information about the County as a whole using the
economic resources measurement focus and accrual basis of accounting.
• The County’s assets and deferred outflow of resources exceeded liabilities and deferred inflow of resources by $884.8million on a government-wide basis at June 30, 2021.
• For the fiscal year, taxes and other revenues of the County’s governmental activities amounted to $5,454.4 million. Expenses amounted to $5,433.7 million.
• For the fiscal year, revenues of the County’s business-type activities were $253.4 million and expenses were $195.2 million.
Highlights for Fund Financial Statements
The fund financial statements provide detailed information about the County’s most significant funds using
the current financial resources measurement focus and modified accrual basis of accounting.
• The County’s governmental funds reported an increase in fund balance of $96.4 million for fiscal year 2021, compared to a decrease of $75.4 million for fiscal year 2020.
• The County’s General Fund reported a fund balance of $684.5 million, an increase of $76.7 million, or 12.6 percent, over fiscal year 2020.
General Financial Highlights
• In September 2020, the County issued $294.1 million of Series 2020B General Obligation Refunding Bonds to advance refund multiple outstanding Series bonds to save $32.4 million in future debt service
payments with a $29.7 million net present value.
• In February 2021, the County issued $254.2 million of Series 2021A General Obligation Public Improvement Bonds. Bond proceeds from this issue are being used to finance school, park, road, and
other County improvements.
• In May 2021, the County closed on a partial defeasance in the amount of $11.2 million of certain Series 2016 obligations associated with the Transportation District Improvement Revenue Bonds (Silver Line
Phase 1 Project) in order to save $17.5 million in future debt service payments.
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
6 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial section of this annual report consists of four parts: (1) management’s discussion and
analysis (presented here), (2) basic financial statements, (3) required supplementary information, and (4)
other supplementary information.
The County’s basic financial
statements consist of two kinds of
statements, each with a different
view of the County’s finances. The
government-wide financial
statements provide both long- and
short-term information about the
County’s overall financial status.
The fund financial statements focus
on major aspects of the County’s
operations, reporting those operations in more detail than the government-wide statements. The basic
financial statements also include notes to explain information in the financial statements and provide
more detailed data.
The statements and notes are followed by required supplementary information that contains the budgetary
comparison schedule for the General Fund and trend data pertaining to the retirement systems. In
addition to these required elements, the County includes other supplementary information with combining
and individual fund statements to provide details about the governmental, internal service, fiduciary
funds, and component units.
Government-wide Financial Statements
The government-wide financial statements report information about the County as a whole using
accounting methods similar to those used by private-sector businesses. In addition, they report the
County’s net position and how it has changed during the fiscal year.
The first government-wide statement—the statement of net position—presents information on all the
County’s assets and deferred outflow of resources less liabilities and deferred inflow of resources,
resulting in the net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial health of the County is improving or deteriorating. Additionally, non-
financial factors, such as a change in the County’s property tax base or the condition of County facilities,
should be considered to assess the overall health of the County.
The second statement—the statement of activities—presents information showing how the County’s net
position changed during the fiscal year. All of the current year’s revenues and expenses are accounted for
in the statement of activities, regardless of when cash is received or paid.
The government-wide financial statements are divided into three categories:
Governmental Activities – Most of the County’s basic services are reported here, including: public
safety, public works, judicial administration, health and welfare services, community development,
parks, recreation, and cultural programs, education, and general administration. These activities are
financed primarily by property taxes, other local taxes, and federal and state grants. Included in the
governmental activities are the governmental funds and internal service funds.
Business-type Activities – The County’s only business-type activity, the Integrated Sewer System
(Sewer System), is reported here.
Management's Discussion and
Analysis
Basic Financial Statements
Government- wide Financial
Statements
Fund Financial Statements
Notes to the Financial
Statements
Required Supplementary
Information
Other Supplementary
Information
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL SECTION 7
Discretely Presented Component Units – The County includes four other entities in its annual financial
report: Fairfax County Public Schools (Public Schools), Fairfax County Redevelopment and Housing
Authority (FCRHA), Fairfax County Park Authority (Park Authority), and Fairfax County Economic
Development Authority (EDA). Although legally separate, these component units are included because
the County is financially accountable for them.
The County’s governmental and business-type activities are collectively referred to as the primary
government. Together, the primary government and its discretely presented component units are referred to
as the reporting entity.
Fund Financial Statements
The fund financial statements provide detailed information about the County’s most significant funds. Funds
are accounting devices that the County uses to keep track of specific sources of funding and spending for
particular purposes. The County uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. The County has the following three types of funds:
Governmental Funds – Most of the County’s basic services are included in governmental funds, which
focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and
(2) the balances remaining at year-end that are available for spending. The governmental funds financial
statements provide a detailed short-term view that helps the reader determine whether there are more or
fewer financial resources that can be spent in the near future to finance the County’s programs. Because
this information does not encompass the additional long-term focus of the governmental activities in the
government-wide financial statements, additional information is provided to explain the relationship (or
differences). The General Fund accounts for the main operating activities of the County; it is the largest
of the governmental funds. All other governmental funds, that is, special revenue funds, debt service
funds, and capital projects funds, are collectively referred to as nonmajor governmental funds.
Proprietary Funds – Proprietary funds, which consist of enterprise funds and internal service funds, are
used to account for operations that are financed and operated in a manner similar to private business
enterprises in which costs are recovered primarily through user charges. Proprietary fund financial
statements, like the government-wide financial statements, provide both long- and short-term financial
information. The County’s only enterprise fund, the Sewer System, is reported as the County’s business-
type activity in the government-wide statements. The fund financial statements provide additional
information, such as cash flows, for the Sewer System. The internal service funds are used to account for
the provision of general liability, malpractice, and workers’ compensation insurance, health benefits for
employees and retirees, vehicle services, document services, and technology infrastructure support to
County departments on a cost reimbursement basis.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the County’s programs. The County’s fiduciary
funds consist of pension trust funds, an OPEB trust fund and custodial funds. The pension trust funds are
used to account for the assets held in trust by the County for the employees and beneficiaries of its
defined benefit pension plans—the Employees’ Retirement System, the Police Officers Retirement
System, and the Uniformed Retirement System. The OPEB trust fund is used to account for the assets
held in trust by the County for other post-employment benefits. The custodial funds are used to account
for monies received, held, and disbursed on behalf of developers, welfare recipients, the Commonwealth
of Virginia, the recipients of certain bond proceeds, and certain other local governments.
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
8 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL ANALYSIS OF THE COUNTY AS A WHOLE
Statement of Net Position
The tables below and on the following page present a Summary of Net Position for the reporting entity as of
June 30, 2021 and 2020:
2021 2020 2021 2020 2021 2020
Assets:
C urrent and other assets 6,361.0$ 6,147.5$ 457.6$ 247.0$ 6,818.6$ 6,394.5
C apital assets (net) 3,118.9 3,041.0 1,743.3 1,679.0 4,862.2 4,720.0
Total assets 9,479.9 9,188.5 2,200.9 1,926.0 11,680.8 11,114.5
Deferred outflow of resources: 905.5 660.5 50.9 32.0 956.4 692.5
Liabilities:
C urrent liabilities 593.6 568.2 38.5 34.1 632.1 602.3
Long-term liabilities 6,268.1 5,957.5 879.9 653.5 7,148.0 6,611.0
Total liabilities 6,861.7 6,525.7 918.4 687.6 7,780.1 7,213.3
Deferred inflow of resources: 3,963.3 3,783.6 9.0 4.2 3,972.3 3,787.8
Net position:
Net investment in
capital assets 2,347.8 2,265.8 1,207.8 1,112.4 3,555.6 3,378.2
Restricted 355.7 382.0 17.9 20.3 373.6 402.3
Unrestricted (deficit) (3,143.1) (3,108.1) 98.7 133.5 (3,044.4) (2,974.6)
Net position (439.6)$ (460.3)$ 1,324.4$ 1,266.2$ 884.8$ 805.9$
Summary of Net Position
As of June 30
($ in millions)
Governmental
Activities
Business-type
Activities
Total
Primary Government
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL SECTION 9
2021 2020 2021 2020** 2021 2020 2021 2020**
Assets:
C urrent and other assets 6,818.6$ 6,394.5$ 1,009.3$ 813.7$ -$ -$ 7,827.9$ 7,208.2$
C apital assets (net) 4,862.2 4,720.0 3,505.7 3,454.7 - - 8,367.9 8,174.7
Total assets 11,680.8 11,114.5 4,515.0 4,268.4 - - 16,195.8 15,382.9
Deferred outflow of resources: 956.4 692.5 1,187.1 1,028.9 - - 2,143.5 1,721.4
Liabilities:
C urrent liabilities 632.1 602.3 249.3 226.0 - - 881.4 828.3
Long-term liabilities 7,148.0 6,611.0 4,948.7 4,637.6 - - 12,096.7 11,248.6
Total liabilities 7,780.1 7,213.3 5,198.0 4,863.6 - - 12,978.1 12,076.9
Deferred inflow of resources: 3,972.3 3,787.8 348.2 386.5 - - 4,320.5 4,174.3
Net position:
Net investment in
capital assets 3,555.6 3,378.2 3,304.7 3,255.0 (1,680.1) (1,690.2) 5,180.2 4,943.0
Restricted 373.6 402.3 188.0 137.3 (101.9) (51.7) 459.7 487.9
Unrestricted (deficit) (3,044.4) (2,974.6) (3,336.9) (3,345.1) 1,782.0 1,741.9 (4,599.3) (4,577.8)
Net position 884.8$ 805.9$ 155.8$ 47.2$ -$ -$ 1,040.6$ 853.1$
*Reclassification represents C ounty issued debt for Schools and Parks facilities. See Note A - 13 for more information.
**Fiscal year 2020 net position restated for Schools due to the implementation of GASB statement 84.
Total
Primary Government
Component
Units
Reclassifications*
Total
Reporting Entity
Summary of Net Position - continued
As of June 30
($ in millions)
The Commonwealth of Virginia requires that counties, as well as their financially dependent component units,
be financed under a single taxing structure. This results in counties issuing general obligation debt to finance
capital assets, such as public schools, for their component units. The component units are then responsible to
account for and maintain the assets purchased or constructed with the debt proceeds. The Governmental
Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, requires that the
primary government and its component units, which make up the total financial reporting entity, be accounted
for separately on the face of the basic financial statements. The result is that debt financed assets are
presented on the books for the component units while the associated debt resides on the books of the primary
government. The reclassification column represents the matching of the primary government’s outstanding
debt to the component units’ related capital assets from a financial reporting entity perspective.
Consequently, the net position of the total financial reporting entity best represents the financial position.
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.
For the reporting entity, assets and deferred outflow of resources exceeded liabilities and deferred inflow of
resources by $1,040.6 million at the end of fiscal year 2021, representing an increase of $187.5 million from
the net position at June 30, 2020, as shown above. The increase in fiscal year 2021 net position was due to
the net additions in capital assets.
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
10 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
$(5,000)
$(3,000)
$(1,000)
$1,000
$3,000
$5,000
2021 2020
Composition of Net Position of the Reporting Entity As of June 30 ($ in millions)
Unrestricted Funds
Restricted Funds
Net Investment in Capital Assets
As shown below, the largest portion of net position is the net investment in capital assets (e.g., land,
buildings, infrastructure, and equipment, net of depreciation and amortization), less the outstanding debt that
was used to acquire those assets, followed closely by unrestricted. The restricted net position portion
represents resources that are subject to external restrictions on how they may be used. Net position of the
reporting entity is restricted for various uses, some of which include transportation ($336.7 million), grant
programs ($43.5 million), housing ($47.6 million), and community centers ($13.4 million). The balance of
net position that is neither related to capital assets nor restricted for specific uses is represented as unrestricted
net position.
-100% -50% 0% 50% 100%
% During 2021
Composition of Net Position of the Reporting Entity As of June 30
Unrestricted Funds
Restricted Funds
Net Investment in
Capital Assets
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL SECTION 11
Statement of Activities
The following table summarizes the changes in Net Position for the primary government for the fiscal years
ended June 30, 2021 and 2020:
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services 625.0$ 677.2$ 251.2$ 240.0$ 876.2$ 917.2$
Operating grants and contributions 505.0 346.8 - - 505.0 346.8
Capital grants and contributions 64.4 40.7 1.4 2.6 65.8 43.3
General revenues:
Real property tax 3,008.7 2,897.8 - - 3,008.7 2,897.8
Personal property tax 432.9 443.3 - - 432.9 443.3
Business licenses tax 180.1 180.1 - - 180.1 180.1
Local sales and use tax 263.8 249.7 - - 263.8 249.7
Consumers utility tax 104.8 110.5 - - 104.8 110.5
Other taxes 63.5 59.9 - - 63.5 59.9
Unrestricted grants and contributions 211.4 211.4 - - 211.4 211.4
Revenue from the use of money (5.2) 11.7 0.8 2.9 (4.4) 14.6
Total revenues 5,454.4 5,229.1 253.4 245.5 5,707.8 5,474.6
Expenses:
General government administration 258.1 258.3 - - 258.1 258.3
Judicial administration 71.1 76.7 - - 71.1 76.7
Public safety 882.3 879.2 - - 882.3 879.2
Public works 282.3 274.4 195.2 193.4 477.5 467.8
Health and welfare 797.8 721.9 - - 797.8 721.9
Community development 569.7 550.1 - - 569.7 550.1
Parks, recreation, and cultural 133.2 143.7 - - 133.2 143.7
Education 2,339.3 2,332.4 - - 2,339.3 2,332.4
Interest on long-term debt * 99.9 103.2 - - 99.9 103.2
Total expenses 5,433.7 5,339.9 195.2 193.4 5,628.9 5,533.3
Increase (decrease) in net position before
special item 20.7 (110.8) 58.2 52.1 78.9 (58.7)
Special items:
Gain from sale of purchased capacity - - - 9.9 - 9.9
Increase (decrease) in net position 20.7 (110.8) 58.2 62.0 78.9 (48.8)
Beginning net position (460.3) (349.5) 1,266.2 1,204.2 805.9 854.7
Ending net position (439.6)$ (460.3)$ 1,324.4$ 1,266.2$ 884.8$ 805.9$
* For business-type activities, interest on long-term debt is included in the functional expense category.
Summary of Changes in Net Position
For the Fiscal Years Ended June 30
($ in millions)
Total
Primary Government
Business-type
Activities
Governmental
Activities
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
12 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Governmental Activities
Revenue for the County’s governmental activities was $5,454.4 million for fiscal year 2021, representing an
increase of $225.3 million over fiscal year 2020. Sources of revenue for fiscal years 2021 and 2020 are
shown below:
$0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200
Real property tax
Other taxes
Personal property tax
Program-specific grants and contributions
Charges for services
Unrestricted grants and contributions
Local sales and use tax
Other
Amounts in Millions
Sources of Revenues
Governmental Activities - Revenues by Source For the Fiscal Years Ended June 30, 2021 and 2020
2021
2020
Taxes constitute the largest source of County revenues, amounting to $4,053.8 million for fiscal year 2021, an
increase of $112.5 million over fiscal year 2020, primarily due to increase in real property taxes. Real
property taxes ($3,008.7 million) represent 74.2 percent of total taxes and over half of all revenues combined.
The real estate tax rate remains at $1.15 per $100 of assessed value, but the real estate assessments increased
by $110.9 million resulting in the increased revenue. Unrestricted grants and contributions include $211.4
million in revenue from the Commonwealth of Virginia to reimburse the County as part of the Personal
Property Tax Relief Act (see Note C to the financial statements).
$0
$300
$600
$900
$1,200
$1,500
$1,800
$2,100
$2,400
Amounts in Millions
Function
Governmental Activities - Expenses by Function For the Fiscal Years Ended June 30, 2021 and 2020
2021
2020
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL SECTION 13
The total cost of all of the County’s governmental activities for fiscal year 2021 was $5,433.7 million,
representing an increase of $93.8 million over fiscal year 2020. As the table below indicates, education
continues to be the County’s largest program. Education totaled $2,339.3 million in fiscal year 2021, an
increase of $6.9 million over fiscal year 2020, to support school operations and to service debt for bond-
funded projects to build new schools and renew older facilities. Health and welfare increased by $75.9
million in total cost of services compared to fiscal year 2020. A significant portion of this arises from new
federal grant awards related to health and social services.
The table below shows the total cost of each of the County’s six largest programs - education, public safety,
health and welfare, community development, public works, and general government administration - and the
net cost of each program (total cost less fees generated by the programs and program-specific
intergovernmental aid).
Functions/Programs 2021 2020 2021 2020
Education 2,339.3$ 2,332.4 2,339.3$ 2,332.4
Public safety 882.3 879.2 743.8 757.2
Health and welfare 797.8 721.9 400.3 422.7
Community development 569.7 550.1 217.4 253.8
Public works 282.3 274.4 79.1 85.5
General government administration 258.1 258.3 206.5 154.8
Other 304.2 323.6 253.0 268.8
Total 5,433.7$ 5,339.9 4,239.4$ 4,275.2
Net Cost of County's Governmental Activities
For the Fiscal Years Ended June 30
($ in millions)
Total
Cost of Services
Net
Cost of Services
Some of the cost of governmental activities was paid by those who directly benefited from the programs,
these costs totaled $624.9 million. Other governments and organizations subsidized certain programs with
grants and contributions totaling $569.4 million. Of the $4,239.4 million net cost of services, the amount that
taxpayers paid for these programs through County taxes was $4,053.8 million.
Business-type Activities
The Sewer System recovers its costs primarily through user service charges and availability fees. For fiscal
year 2021, the Sewer System reported an increase in net position of $58.2 million. Total revenues of the
Sewer System increased $7.9 million from fiscal year 2020. This increase was primarily the result of an
increase in the sewer availability fees.
Total expenses of the Sewer System for fiscal year 2021 were $195.2 million, increasing by $1.8 million from
fiscal year 2020. This increase was primarily the result of increases in contractual services.
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
14 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The focus of the County’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s
financing requirements. Fund balance classifications are reported by purpose within these classifications;
nonspendable, restricted, committed, assigned, and unassigned as defined by GASB 54.
As of June 30, 2021, the County’s governmental funds had a combined fund balance of $1,691.5 million,
compared with $1,595.0 million at June 30, 2020. Of the fiscal year 2021 fund balance, $36.8 million is
assigned in the General Fund, indicating that it is not available for new spending as it has been allocated for
items such as existing purchase orders, construction contracts and loan repayments. Approximately 21.3
percent ($145.5 million) of the total 2021 General Fund balance is unassigned, representing resources not
associated with a specified purpose. With regards to the nonmajor fund balance, as a portion of the total
governmental funds fund balance, 60.5 percent ($1,023.3 million) has been restricted or committed in the
special revenue, capital projects, and debt service funds to meet the program needs. Nonspendable prepaid
expenditures are 0.12 percent ($2.0 million) of the total fund balance. At June 30, 2021, $411.5 million of the
General Fund’s committed fund balance of $500.6 million is designated for the managed reserve and revenue
stabilization fund based on fiscal year 2021 actuals.
For the fiscal year ended June 30, 2021, fund balances for all governmental funds increased by $96.4 million,
compared with the $75.4 million decrease for fiscal year ended June 30, 2020. Total revenues and other
financing sources were $6,802.5 million, total expenditures and other financing uses were $6,706.1 million,
resulting in the increase to the fund balances. Although total revenues were less than expenditures in fiscal
year 2021, the total other financing sources and uses exceeded the deficiency of revenues over expenditures.
In comparison to fiscal year 2020, total revenues and other financing sources increased by $382.6 million
mainly due to an increase in real estate assessments and the recognition of federal stimulus funds from the
Coronavirus Relief Fund. Expenditures and other financing uses increased by $210.7 million compared to
fiscal year 2020 due to expended Coronavirus Relief funds and debt service payments.
The General Fund is the main operating fund of the County. At the end of the current fiscal year, the
unassigned fund balance was $145.5 million, which represents approximately 3.7 percent of the General
Fund’s total expenditures. Revenues of $4,615.4 million, less expenditures of $3,894.7 million and other
financing uses of $644.0 million, resulted in a net increase in fund balance of $76.7 million. This increase
was primarily attributed to the rise in real estate assessments.
In addition to revenue stabilization, managed reserve and other reserves specifically identified in the General
Fund, the County has, as a result of policy decisions, established reserves in other funds which are available to
allow the County to respond to both anticipated and unforeseen events. The practice of identifying these
reserves in multiple funds has been in place for many years. These reserves are identified in the County’s
Internal Service Funds and certain Special Revenue Funds, such as the Fairfax-Falls Church Community
Services Board that receive the majority of their funding from the General Fund. These balances total
approximately 19.6 percent of total General Fund receipts (including revenues and transfers from other funds)
as shown in the table on the following page.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL SECTION 15
General fund committed reserves (1): Revenue stabilization fund reserve 228.9$
Managed reserve 182.6
Information Technology and others 89.1
Total committed 500.6
General fund assigned reserves (encumbrances) 36.8
General fund unassigned reserves 145.5
General fund supported reserves (2):
Community services board 38.8
Internal service fund reserves (3):
Vehicle related reserves 64.9
Technology related reserves 16.5
Self insurance reserves 104.5
Total reserves funded by and available to the general fund 907.6
General fund revenues and transfers in (4):
General fund revenues 4,615.5
Transfers in 7.1
Total general fund revenues and transfers in 4,622.6$
Total available reserves as % of general fund revenues 19.6%
(1) Exhibit A-2 (3) Exhibit G
(2) Exhibit D
(4) Exhibit A-3
Fund Reserves
For the Fiscal Years Ended June 30, 2021
($ in millions)
The County’s enterprise fund provides the same type of information found in the government-wide financial
statements, as the basis of accounting is the same. Factors relating to the financial results of the Sewer
System have been addressed in the discussion of the County’s business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended budget appropriations, which include expenditures and transfers out, were more than the
original budget amounts by $352.2 million or 7.9 percent. This increase is primarily due to the carryover of
prior-year commitments. The final amended budget revenues and transfers in were more than the original
budget by a net of $90.3 million or 2.0 percent, primarily due to higher than projected Local Sales and Use
Tax receipts, Business Licenses, and Intergovernmental revenue associated with the receipt of over $111
million in stimulus funds from the American Rescue Plan Act (ARPA).
Actual revenues were $44.1 million more than final budget amounts, and actual expenditures were $263.9
million less than final budget amounts. Highlights of the comparison of final budget to actual figures for the
fiscal year ended June 30, 2021, include the following:
• Tax revenues exceeded budgeted amounts by $30.1 million. The increase is a combination of increases in Real Property and Business Licenses Taxes, Local Sales & Use Taxes, and Recordation Taxes.
• Intergovernmental revenue was $1.8 million more than budgeted amounts primarily associated with reimbursable expenditures for various public assistance programs.
• General government administration expenditures were $8.0 million, or 6.1 percent, less than budgeted amounts as a result of managing position vacancies and encumbrances carried forward to the next fiscal
year.
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
16 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
• Public safety expenditures were $26.3 million, or 4.8 percent, less than budgeted amounts mainly as a result of savings associated with managing position vacancies and encumbrances carried forward to the
next fiscal year.
• Health and welfare expenditures were $50.4 million, or 16.6 percent, less than budgeted amounts due to managing position vacancies, lower than anticipated costs in the Department of Family Services, the
Health Department, and the Department of Neighborhood and Community Services, and encumbrances
carried forward to the next fiscal year.
• Nondepartmental expenditures were $157.5 million, or 23.6 percent, less than budgeted amounts primarily due to unspent balances of federal stimulus funds carried forward to the next fiscal year and
savings in employer contributions to group health and life insurance.
CAPITAL ASSETS AND LONG-TERM DEBT
Capital Assets
The County’s investment in capital assets as of June 30, 2021, amounted to $4.9 billion, which represents an
increase of $142.2 million, or 3.0 percent, over last year. Capital assets as of June 30, 2021 and 2020, are
summarized below:
2021 2020 2021 2020 2021 2020
Land and easements 463.4$ 460.8 18.1$ 18.0 481.5$ 478.8
Buildings, improvements, and infrastructure 3,230.3 3,102.5 1,553.2 1,511.9 4,783.5 4,614.4
Software 181.1 163.3 - - 181.1 163.3
Vehicles, equipment, and library collections 662.6 632.4 17.1 15.8 679.7 648.2
Construction in progress 351.0 317.5 285.2 228.5 636.2 546.0
Equipment under construction 30.6 32.3 - - 30.6 32.3
Software in development 20.4 15.9 - - 20.4 15.9
Purchased capacity - - 1,154.8 1,124.3 1,154.8 1,124.3
Total capital assets 4,939.4 4,724.7 3,028.4 2,898.5 7,967.8 7,623.2
Less: Accumulated depreciation and
amortization (1,820.5) (1,683.7) (1,285.1) (1,219.5) (3,105.6) (2,903.2)
Total capital assets, net 3,118.9$ 3,041.0 1,743.3$ 1,679.0 4,862.2$ 4,720.0
Capital Assets
As of June 30
($ in millions)
Governmental
Activities
Business-type
Activities
Total
Primary Government
The major capital asset activities for fiscal year 2021 included the following:
• Developers’ contributions of sewer lines and manholes totaled $1.4 million; contributions related to stormwater and pedestrian walkways totaled $9.3 million.
• The purchase of library books and audio/video materials totaled $3.7 million, funded through general operating revenues.
• Improvements to transportation, including bus and rail service, totaled $5.4 million, County and Regional transportation projects totaled $2.9 million, and Stormwater Services totaled $40.7 million.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL SECTION 17
• Expenditures related to construction of the Springfield and Innovation Metrorail Parking Facility, Sully and Lorton Community Center, Fire Station in multiple locations and Capital Sinking fund for facilities
and walkways were $2.7 million, $13.3 million, $35.0 million, and $7.7 million, respectively.
• The Sewer System’s share of the upgrade and operating costs of the Noman Cole Treatment Plant Renovation, totaled $61.3 million.
• The acquisition of Software increased by $22.4 million for improving general government administration function.
Additional information related to the County’s capital assets can be found in Note F to the financial
statements.
Long-term Debt
There is no legal limit on the amount of long-term indebtedness that the County can at any time incur or have
outstanding. However, all general obligation bonded indebtedness must be approved by voter referendum
prior to issuance. The Board of Supervisors has established the following self-imposed limits with respect to
long-term debt:
• A limit of $1.5 billion of general obligation bond sales over a five-year period, for an average of $300 million annually, with a maximum of $325 million in any given year, excluding refunding bonds.
• A limitation that total long-term debt (excluding capital leases for equipment and sewer revenue bonds) not exceed 3.00 percent of the total market value of taxable real and personal property in the County and
that annual debt service payments not exceed 10.00 percent of annual General Fund expenditures and
transfers out. For fiscal year 2021, these percentages were 1.03 percent and 7.16 percent, respectively.
In February 2021, the County issued $254.2 million of Series 2021A General Obligation Public Improvement
Bonds with a true interest cost of 1.23 percent and a premium of $36.5 million. Proceeds of $254.2 million
are being used to fund new facilities and improvements, as follows (in millions):
County facilities:
Transportation Improvements ..................... $ 15.0
Public safety facilities ................................. 24.0
Other purposes ........................................... 8.0
Park facilities .............................................. 13.9
Transportation facilities .............................. 36.0
Public Schools facilities .............................. 157.3
Total bonds issued for new projects............ $254.2
In September 2020, the County issued $294.1 million of Series 2020B General Obligation Refunding Bonds
to advance refund multiple outstanding Series bonds to save $32.4 million in future debt service payments
with a $29.7 million net present value.
In May 2021, the County closed on a partial defeasance in the amount of $11.2 million of certain Series 2016
obligations associated with the Transportation District Improvement Revenue Bonds (Silver Line Phase 1
Project) to save $17.5 million of future debt service payments, with a $17.3 million net present value.
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
18 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The following is a summary of the County’s gross outstanding long-term debt as of June 30, 2021 and 2020:
Additional information related to the County’s long-term debt can be found in Note J to the financial
statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The following economic factors are reflected in the General Fund budget for fiscal year 2022:
• The assessed value of all real property increased by $7.62 billion, or 2.88 percent, over the fiscal year 2021 value. This resulted from an increase in existing property values and construction of new properties.
• Equalized residential property assessments increased 4.25 percent and non-residential equalization decreased 4.05 percent for fiscal year 2022. For the first time since fiscal 2016, growth in residential
equalization has been higher than that of non-residential equalization.
• Personal property tax revenue is projected to increase 1.86 percent in fiscal year 2022 compared to the fiscal year 2021 revised budget. The total vehicle volume is forecasted to decline 3.80 percent in fiscal
year 2022.
• The General Fund revenue is expected to decrease 0.64 percent from the fiscal year 2021 revised budget plan, due to the American Rescue Plan Act stimulus revenue received in fiscal year 2021. Absent the
stimulus revenue, fiscal year 2022 revenue is expected to increase 1.85 percent.
The fiscal year 2022 Adopted Budget includes revenues of $4.52 billion, or a 0.64 percent decrease from the
fiscal year 2021 Revised Budget Plan. Real estate and personal property taxes represent the majority of
budgeted revenues, comprising approximately 81.93 percent of the fiscal year 2022 General Fund revenues.
Revenue from real property taxes alone makes up 67.46 percent of total revenues, as compared with
approximately 67.35 percent in the fiscal year 2021 Adopted Budget.
The fiscal year 2022 General Fund disbursements, which include transfers out, total $4.53 billion, a 6.15
percent decrease from the fiscal year 2021 Revised Budget Plan. County funding for Public Schools is $2.38
billion which is approximately 52.63 percent of the County’s total General Fund budget. This funding
2021 2020 2021 2020 2021 2020
General obligation bonds issued for:
County facilities 866.3$ 823.3 -$ - 866.3$ 823.3
Public Schools facilities 1,489.6 1,435.8 - - 1,489.6 1,435.8
Revenue bonds 647.2 700.0 - - 647.2 700.0
Sewer revenue bonds - - 742.2 564.3 742.2 564.3
Notes payable and other 469.3 463.9 - - 469.3 463.9
Total County outstanding debt 3,472.4$ 3,423.0 742.2$ 564.3 4,214.6$ 3,987.3
Outstanding Long-term Debt
As of June 30
($ in millions)
Governmental
Activities
Business-type
Activities
Total
Primary Government
MANAGEMENT’S DISCUSSION AND ANALYSIS
FINANCIAL SECTION 19
supports operating costs, school construction, and debt service. Total direct expenditure funding decreased by
$264.19 million, or 13.77 percent, from fiscal year 2021.
The following tax rates and fees were approved for fiscal year 2022:
• Real estate tax rate decreases from $1.15 to $1.14 per $100 of assessed value.
• Commercial real estate tax rate for County transportation projects remains at $0.125 per $100 of assessed value, levied on commercial and industrial properties.
• Special tax rate for the Dulles Rail Phase I Transportation Improvement District remains at $0.09 per $100 of assessed value, levied on commercial and industrial properties in the district. Dulles Rail Phase
II remains at $0.20 per $100 of assessed value.
• Special real estate tax rate collected on all properties within Small District 1, Dranesville, for the McLean Community Center remains at $0.023 per $100 of assessed value, and the rate collected on all properties
within Small District 5, Hunter Mill, for the Reston Community Center remains at $0.047 per $100
assessed value.
• The Sewer Service rate increases from $7.28 to $7.72 per 1,000 gallons of water consumption and the Sewer Availability Charge for new single-family homes increases from $8,340 to $8,507 per unit. The
Sewer Base Charge increases from $32.91 to $36.54 per quarter.
• Refuse collection rate for County collection sanitation districts increases from $370 to $400 per household and the refuse disposal rate decreases from $68 to $66 per ton.
• The Stormwater Services rate remains the same at $0.0325 per $100 of assessed value.
• Special real estate tax rate collected on all properties within the Tysons Service District remains at $0.05 per $100 of assessed value.
• Special real estate tax rate collected on all properties within the Reston Service District remains at $0.021 per $100 of assessed value.
The Board has maintained the dedication of one-half penny of the real estate tax rate for the preservation of
Affordable Housing. Funding adjustments and strategies have been incorporated in the fiscal year 2022
Adopted Budget Plan to continue to address the County’s commitment to achieving the strategic priorities of
a strong investment in education; public safety and gang prevention; affordable housing; environmental
protection; transportation improvements; and revenue diversification to reduce the burden on the homeowner.
CONTACTING THE COUNTY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our residents, taxpayers, customers, and investors and creditors
with a general overview of the County’s finances and to demonstrate the County’s accountability for the
money it receives. If you have questions about this report or need additional financial information, contact
the County of Fairfax, Virginia, Department of Finance, 12000 Government Center Parkway, Fairfax,
Virginia, 22035. This report can also be found on the County’s web site at www.fairfaxcounty.gov.
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
20 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Basic Financial Statements
he Basic Financial Statements subsection in
which i cludes the government-wide statements,
ncorporate governmental and business-type activities of the County of Fairfax and activities of component units in order to provide an overview of
T
the financial position and results of operations for the reporting entity. This subsection also includes the fund financial statements of the County and the accompanying notes to the financial statements.
21Financial Section
Basic Financial Statements
22
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statement of Net Position June 30, 2021
Governmental Activities
Business-type Activities
1,183,787,356$ 104,322,559 1,288,109,915 - - -
1,045,065,650 - 1,045,065,650
25,014,653 1,363,801 26,378,454 7,055,300 - 7,055,300
28,372,527 - 28,372,527 3,503,193,330 - 3,503,193,330
2,618,259 - 2,618,259 Loans 61,831,321 - 61,831,321
- - - Due from intergovernmental units (net of allowances):
Property tax relief - not yet due 211,313,944 - 211,313,944 Other 132,073,410 64,973,713 197,047,123
Due from primary government - - - Due from component units 331,817 - 331,817 Loan to component unit 9,599,400 - 9,599,400 Lease to component unit 34,925,000 - 34,925,000
3,265,136 453,527 3,718,663 2,035,283 - 2,035,283
17,027,995 235,966,039 252,994,034 92,045,040 17,941,505 109,986,545
- - - - 32,570,543 32,570,543
Property held for sale 1,404,724 - 1,404,724
Non-depreciable/non-amortizable: 463,397,346 18,063,764 481,461,110 351,041,565 285,175,888 636,217,453
Equipment under construction 30,595,562 - 30,595,562 Software in development 20,430,576 - 20,430,576
543,738,120 17,164,967 560,903,087 Software 181,156,545 - 181,156,545
118,851,208 - 118,851,208 Purchased capacity - 1,154,792,912 1,154,792,912
2,029,958,517 91,850,481 2,121,808,998 1,200,301,478 1,461,362,424 2,661,663,902
(1,745,241,237) (793,296,772) (2,538,538,009) Accumulated amortization (75,284,330) (491,765,757) (567,050,087)
Total assets 9,479,905,495 2,200,939,594 11,680,845,089
273,129,715 5,387,683 278,517,398 Deferred outflow for change in proportion (pensions) 18,173,024 1,474,940 19,647,964
41,443,103 1,108,033 42,551,136 Deferred outflow of recognition of pension investments 399,016,828 3,897,205 402,914,033 Deferred outflow for changes in assumptions (pensions) 16,291,949 257,664 16,549,613
16,526,889 435,536 16,962,425 Deferred outflow for change in proportion (OPEB) 55,185 - 55,185
13,636,719 359,607 13,996,326 Deferred outflow for recognition of investments (OPEB) 8,930,075 235,490 9,165,565 Deferred outflow for changes in assumptions (OPEB) 65,317,805 1,722,463 67,040,268 Deferred loss on refunding of debt 53,002,643 36,004,193 89,006,836
905,523,935$ 50,882,814 956,406,749
C ash and temporary investments with fiscal agents
Infrastructure
Library collections
Deferred outflow for differences between expected and actual experience (pensions)
Deferred outflow for differences between expected and actual experience (OPEB)
Primary Government Total Primary
Government ASSETS Equity in pooled cash and temporary investments C ash in banks/with fiscal agents
C apital assets:
Investments
Accounts
Inventories of supplies Prepaid and other assets
Receivables (net of allowances):
Business license taxes - delinquent
Notes
Deposit held in trust
Investments
Not yet due
Accrued interest Property taxes:
Delinquent
Restricted assets: Equity in pooled cash and temporary investments
Vehicles and equipment
Land and easements C onstruction in progress
Depreciable/amortizable:
Total deferred outflows of resources
Accumulated depreciation
Buildings and improvements
See accompanying notes to the financial statements.
DEFERRED OUTFLOWS OF RESOURCES Deferred outflow for pension contributions subsequent to the measurement date
Deferred outflow for OPEB contributions subsequent to the measurement date
23Financial Section
Basic Financial Statements
Exhibit A
Reclassifications (See Note A-13)
613,277,432 - 1,901,387,347 41,361,658 - 41,361,658 2,205,000 - 1,047,270,650
20,861,903 - 47,240,357 164,281 - 7,219,581
- - 28,372,527 - - 3,503,193,330 - - 2,618,259 - - 61,831,321 Loans
28,389,985 - 28,389,985 Due from intergovernmental units (net of allowances):
- - 211,313,944 Property tax relief - not yet due 68,758,139 - 265,805,262 Other 5,445,615 - 5,445,615 Due from primary government
- - 331,817 Due from component units - - 9,599,400 Loan to component unit - - 34,925,000 Lease to component unit
1,545,933 - 5,264,596 3,592,390 - 5,627,673
142,519,777 - 395,513,811 70,853,116 - 180,839,661 9,108,543 - 9,108,543 1,212,739 - 33,783,282
- - 1,404,724 Property held for sale
Non-depreciable/non-amortizable: 490,689,367 - 972,150,477 338,294,348 - 974,511,801
- - 30,595,562 Equipment under construction 777,072 - 21,207,648 Software in development
428,577,093 - 989,480,180 13,260,834 - 194,417,379 Software 20,612,968 - 139,464,176
- - 1,154,792,912 Purchased capacity 5,140,688,973 - 7,262,497,971
- - 2,661,663,902 (2,917,086,420) - (5,455,624,429)
(10,104,410) - (577,154,497) Accumulated amortization 4,515,006,336 - 16,195,851,425 Total assets
DEFERRED OUTFLOWS OF RESOURCES
444,228,423 - 722,745,821 38,437,161 - 58,085,125 Deferred outflow for change in proportion (pensions)
49,293,817 - 91,844,953 322,769,725 - 725,683,758 Deferred outflow of recognition of pension investments 207,754,017 - 224,303,630 Deferred outflow for changes in assumptions (pensions)
29,644,869 - 46,607,294 8,232,662 - 8,287,847 Deferred outflow for change in proportion (OPEB)
65,274,927 - 79,271,253 5,661,857 - 14,827,422 Deferred outflow for recognition of investments (OPEB)
15,847,722 - 82,887,990 Deferred outflow for changes in assumptions (OPEB) - - 89,006,836 Deferred loss on refunding of debt
1,187,145,180 - 2,143,551,929 continued
Accumulated depreciation
Deferred outflow for pension contributions subsequent to the measurement date
C onstruction in progress
Depreciable/amortizable:
Deferred outflow for differences between expected and actual experience (pensions)
Deferred outflow for OPEB contributions subsequent to the measurement date
Deferred outflow for differences between expected and actual experience (OPEB)
Total deferred outflows of resources
Equity in pooled cash and temporary investments C ash in banks/with fiscal agents Investments
Delinquent Not yet due
Receivables (net of allowances): Accounts Accrued interest Property taxes:
Total Reporting
Entity
Total C omponent
Units
Vehicles and equipment
Library collections
Business license taxes - delinquent
Notes
Deposit held in trust Investments
C apital assets:
Buildings and improvements
Inventories of supplies Prepaid and other assets Restricted assets:
Equity in pooled cash and temporary investments C ash and temporary investments with fiscal agents
Land and easements
Infrastructure
ASSETS
24
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statement of Net Position June 30, 2021
Governmental Activities
Business-type Activities
117,741,754$ 1,962,745 119,704,499 Accrued salaries and benefits 100,010,620 2,352,592 102,363,212
9,668,916 27,957,265 37,626,181 Accrued interest payable 36,300,568 6,238,664 42,539,232
8,826,838 - 8,826,838 Due to primary government - - -
5,445,615 - 5,445,615 - - -
193,640,522 - 193,640,522 121,955,737 - 121,955,737
249,098,031 - 249,098,031 Revenue bonds payable, net 46,156,989 36,133,788 82,290,777 Notes payable, net 645,000 - 645,000
74,226,029 1,557,921 75,783,950 Landfill closure and postclosure obligation 36,000 - 36,000 Obligations under capital leases and installment purchases 1,192,467 - 1,192,467 Insurance and benefit claims payable 26,291,000 - 26,291,000 Loan from primary government - - - Unearned Rent - - -
1,323,915 - 1,323,915
2,324,618,854 - 2,324,618,854 Revenue bonds payable, net 674,430,064 799,211,374 1,473,641,438 Notes payable, net 449,737,544 - 449,737,544
87,329,316 1,632,067 88,961,383 Landfill closure and postclosure obligation 49,383,018 - 49,383,018 Obligations under capital leases and installment purchases 1,800,090 - 1,800,090 Insurance and benefit claims payable 56,496,000 - 56,496,000 Net pension liability 2,194,716,908 41,009,432 2,235,726,340 Net OPEB liability 15,939,689 420,338 16,360,027 Loan from primary government - - - Unearned Rent - - - Other 14,649,355 - 14,649,355
Total liabilities 6,861,660,839 918,476,186 7,780,137,025
DEFERRED INFLOWS OF RESOURCES Deferred tax revenue 3,754,774,602 - 3,754,774,602 Deferred revenue - other 6,003,506 - 6,003,506 Deferred gain on refunding 6,933,249 4,763,412 11,696,661
62,498,918 490,250 62,989,168 Deferred inflow for change in proportion (pensions) 392,522 208,695 601,217
7,015,555 185,004 7,200,559 Deferred recognition of OPEB investments - - - Deferred inflow for change in proportion (OPEB) - 12,803 12,803 Deferred inflow for change in assumptions (OPEB) 125,748,662 3,316,055 129,064,717 Reduction of capital lease - - -
Total deferred inflows of resources 3,963,367,014 8,976,219 3,972,343,233
2,347,835,603 1,207,780,108 3,555,615,711
5,632,351 - 5,632,351 Repair and replacement - - -
13,397,526 - 13,397,526 Housing - - - Transportation 336,651,809 - 336,651,809 C apital projects - - - Debt service - 17,941,505 17,941,505
(3,143,115,712) 98,648,390 (3,044,467,322) (439,598,423)$ 1,324,370,003 884,771,580 Net position
C ommunity centers
Unrestricted (deficit)
Net investment in capital assets Restricted for:
C ompensated absences payable
NET POSITION
Grant programs
C ompensated absences payable
Due to intergovernmental units
Accounts payable and accrued liabilities
General obligation bonds payable, net
Due to component units Unearned revenue
Primary Government Total Primary
Government
See accompanying notes to the financial statements.
LIABILITIES
C ontract retainages
Deferred inflow related to differences between actual and expected experience (pensions)
Other Portion due or payable after one year:
General obligation bonds payable, net
Other Performance and other deposits Long-term liabilities:
Portion due or payable within one year:
Deferred inflow related to differences between actual and expected experience (OPEB)
25Financial Section
Basic Financial Statements
Exhibit A concluded
Reclassifications (See Note A-13)
59,155,890 - 178,860,389 99,627,361 - 201,990,573 Accrued salaries and benefits 15,242,521 - 52,868,702 15,633,261 - 58,172,493 Accrued interest payable 3,599,450 - 12,426,288
331,817 - 331,817 Due to primary government - - 5,445,615
35,659,870 - 35,659,870 - - 193,640,522
20,057,911 - 142,013,648
- - 249,098,031 715,457 - 83,006,234 Revenue bonds payable, net
26,610,170 - 27,255,170 Notes payable, net 30,336,474 - 106,120,424
- - 36,000 Landfill closure and postclosure obligation 28,305,987 - 29,498,454 Obligations under capital leases and installment purchases 30,833,347 - 57,124,347 Insurance and benefit claims payable
645,300 - 645,300 Loan from primary government 201,343 - 201,343 Unearned Rent
- - 1,323,915
- - 2,324,618,854 18,970,625 - 1,492,612,063 Revenue bonds payable, net 61,877,402 - 511,614,946 Notes payable, net 15,964,175 - 104,925,558
- - 49,383,018 Landfill closure and postclosure obligation 81,486,318 - 83,286,408 Obligations under capital leases and installment purchases 41,283,388 - 97,779,388 Insurance and benefit claims payable
4,209,841,631 - 6,445,567,971 Net pension liability 388,542,684 - 404,902,711 Net OPEB liability
8,954,100 - 8,954,100 Loan from primary government 4,229,146 - 4,229,146 Unearned Rent
- - 14,649,355 Other 5,198,105,628 - 12,978,242,653 Total liabilities
DEFERRED INFLOWS OF RESOURCES - - 3,754,774,602 Deferred tax revenue - - 6,003,506 Deferred revenue - other - - 11,696,661 Deferred gain on refunding
179,279,757 - 242,268,925 20,195,670 - 20,796,887 Deferred inflow for change in proportion (pensions)
24,530,882 - 31,731,441 24,831,484 - 24,831,484 Deferred recognition of OPEB investments
677,139 - 689,942 Deferred inflow for change in proportion (OPEB) 95,665,131 - 224,729,848 Deferred inflow for change in assumptions (OPEB) 3,044,188 - 3,044,188 Reduction of capital lease
348,224,251 - 4,320,567,484 Total deferred inflow of resources
3,304,655,268 (1,680,137,478) 5,180,133,501
37,843,039 - 43,475,390 700,000 - 700,000 Repair and replacement
- - 13,397,526 47,575,932 - 47,575,932 Housing
- - 336,651,809 Transportation 101,905,820 (101,905,820) - C apital projects
- - 17,941,505 Debt service (3,336,858,422) 1,782,043,298 (4,599,282,446)
155,821,637 - 1,040,593,217
Portion due or payable after one year:
C ommunity centers
General obligation bonds payable, net
Unrestricted (deficit) Net position
NET POSITION Net investment in capital assets Restricted for:
Grant programs
C ompensated absences payable
Deferred inflow related to differences between actual and expected experience (pensions)
Deferred inflow related to differences between actual and expected experience (OPEB)
Other
Unearned revenue
General obligation bonds payable, net
C ompensated absences payable
LIABILITIES Accounts payable and accrued liabilities
C ontract retainages
Due to intergovernmental units
Due to component units
Long-term liabilities: Portion due or payable within one year:
Other Performance and other deposits
Total Reporting
Entity
Total C omponent
Units
26
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statement of Activities For the fiscal year ended June 30, 2021
Governmental activities: 258,112,138$ 38,861,891 5,727,797 6,984,266 71,191,932 9,275,977 25,113,265 -
882,293,607 73,317,201 64,356,610 794,816 282,251,099 176,467,547 4,829,382 21,900,500 797,755,569 42,688,380 354,371,202 420,421 569,687,675 268,142,659 49,793,854 34,303,458 133,178,188 16,160,486 770,371 13,260
2,339,297,904 - - - 99,955,370 - - -
5,433,723,482 624,914,141 504,962,481 64,416,721
195,221,272 251,162,619 - 1,475,624 195,221,272 251,162,619 - 1,475,624
5,628,944,754 876,076,760 504,962,481 65,892,345
3,320,812,299 76,892,323 411,859,293 194,679,133 129,242,102 41,444,041 90,915,113 -
Park Authority 101,775,493 30,993,539 - 25,000,214 63,793,551 - - 1,750,000
3,615,623,445$ 149,329,903 502,774,406 221,429,347
to specific programs
Revenue from primary government
Prior period adjustment Net position, July 1, 2020, as restated
See accompanying notes to the financial statements.
Grants and contributions not restricted Occupancy, tobacco, and other Recordation
Other
Revenue from the use of money
Net position, June 30, 2021
Net position, July 1, 2020, as previously restated C hange in net position Total general revenues
Public works - Sewer Total business-type activities
Local sales and use Business licenses
General revenues:
C onsumers utility
Personal property
Total component units
Public works
Real property Taxes:
C ommunity development
Public Schools
Economic Development Authority
Redevelopment and Housing Authority
Parks, recreation, and cultural Education - for Public Schools Interest on long-term debt
Component units:
Total governmental activities
Total primary government
Business-type activities:
Program Revenues
Health and welfare
General government administration Judicial administration Public safety
Primary government: ExpensesFunctions/Programs
C harges for
Services
Operating Grants and
C ontributions
C apital Grants and
C ontributions
27Financial Section
Basic Financial Statements
Exhibit A-1
Governmental activities: (206,538,184) - (206,538,184) - (36,802,690) - (36,802,690) -
(743,824,980) - (743,824,980) - (79,053,670) - (79,053,670) -
(400,275,566) - (400,275,566) - (217,447,704) - (217,447,704) - (116,234,071) - (116,234,071) -
(2,339,297,904) - (2,339,297,904) - (99,955,370) - (99,955,370) -
(4,239,430,139) - (4,239,430,139) -
- 57,416,971 57,416,971 - - 57,416,971 57,416,971 -
(4,239,430,139) 57,416,971 (4,182,013,168) -
- - - (2,637,381,550) - - - 3,117,052 - - - (45,781,740) Park Authority - - - (62,043,551) - - - (2,742,089,789)
3,008,700,940$ - 3,008,700,940 - 432,944,446 - 432,944,446 - 180,132,797 - 180,132,797 - 263,801,220 - 263,801,220 - 104,787,720 - 104,787,720 - 42,977,172 - 42,977,172 - 20,532,652 - 20,532,652 -
211,422,769 - 211,422,769 577,036,007 to specific programs (5,159,355) 790,769 (4,368,586) 1,073,695
- - - 2,262,328,957 Revenue from primary government - - - 3,438,640
4,260,140,361 790,769 4,260,931,130 2,843,877,299 20,710,222 58,207,740 78,917,962 101,787,510
(460,308,645) 1,266,162,263 805,853,618 31,066,502 22,967,625 Prior period adjustment 54,034,127 Net position, July 1, 2020, as restated
(439,598,423)$ 1,324,370,003 884,771,580 155,821,637
Net (Expense) Revenue and Changes in Net Position Total
C omponent Units
Primary Government Governmental
Activities Business-type
Activities Total Primary Government
Total governmental activities
Business licenses
Redevelopment and Housing Authority
Economic Development Authority Total component units
General revenues:
Component units: Public Schools
Functions/Programs Primary government:
General government administration Judicial administration
Education - for Public Schools
Public safety Public works Health and welfare C ommunity development Parks, recreation, and cultural
Total business-type activities
Interest on long-term debt
Grants and contributions not restricted
Business-type activities: Public works - Sewer
Taxes: Real property Personal property
Recordation
Total primary government
Local sales and use C onsumers utility
Occupancy, tobacco, and other
Net position, June 30, 2021
Revenue from the use of money
Other Total general revenues C hange in net position Net position, July 1, 2020, as previously restated
28
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit A-2 Balance Sheet Governmental Funds June 30, 2021
General Fund
Nonmajor Governmental
Funds
Total Governmental
Funds
Equity in pooled cash and temporary investments 466,239,498$ 448,247,461 914,486,959 Investments 532,813,376 512,252,274 1,045,065,650 Receivables (net of allowances):
Accounts 10,633,316 14,376,675 25,009,991 Accrued interest - 7,055,300 7,055,300 Property taxes:
Delinquent 28,372,527 - 28,372,527 Not yet due 3,503,193,330 - 3,503,193,330
Business license taxes - delinquent 2,618,259 - 2,618,259 Loans - 61,831,321 61,831,321
Due from intergovernmental units (net of allowances): Not yet due 211,313,944 - 211,313,944 Other 52,605,958 78,978,183 131,584,141
Due from component units 331,817 - 331,817 Loan to component unit - 9,599,400 9,599,400 Lease to component unit - 34,925,000 34,925,000 Interfund receivables 834,601 - 834,601 Prepaid and other assets 1,702,289 332,994 2,035,283 Restricted assets:
Equity in pooled cash and temporary investments - 17,027,995 17,027,995 C ash with fiscal agents 672,124 91,372,916 92,045,040
Property held for sale - 1,404,724 1,404,724 Total assets 4,811,331,039 1,277,404,243 6,088,735,282
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - -
4,811,331,039$ 1,277,404,243 6,088,735,282
LIABILITIES 29,163,240$ 79,349,450 108,512,690
Accrued salaries and benefits 78,904,257 18,693,766 97,598,023 2,348 9,666,568 9,668,916
29,794 8,797,044 8,826,838 Due to component units 3,444,701 2,000,914 5,445,615
1,577,996 834,601 2,412,597 154,947,042 100,553,608 255,500,650 82,730,157 39,225,580 121,955,737
Total liabilities 350,799,535 259,121,531 609,921,066
DEFERRED INFLOWS OF RESOURCES Deferred tax revenue 3,754,774,602 - 3,754,774,602 Unavailable revenue 21,209,579 11,379,045 32,588,624
Total deferred inflows of resources 3,775,984,181 11,379,045 3,787,363,226
Total liabilities and deferred inflows of resources 4,126,783,716$ 270,500,576 4,397,284,292 continued
Unearned revenue
Accounts payable and accrued liabilities
C ontract retainages
Interfund payables
Due to intergovernmental units
Performance and other deposits
Total assets and deferred outflows of resources
ASSETS
29Financial Section
Basic Financial Statements
General Fund
Nonmajor Governmental
Funds
Total Governmental
Funds
Nonspendable: Prepaid amounts 1,702,289$ 332,994 2,035,283
Total Nonspendable 1,702,289 332,994 2,035,283 Restricted for:
Public safety, courts, and judicial - 37,016,436 37,016,436 General public works - 116,443,293 116,443,293 Stormwater management - 90,191,555 90,191,555 Transportation - 356,413,484 356,413,484 Social services, health and welfare - 2,881,495 2,881,495 Housing and community development - 45,013,165 45,013,165 Parks, recreation, and cultural - 14,163,058 14,163,058 Debt service - 10,920,181 10,920,181 C apital projects - 83,364,946 83,364,946 Other purposes - 7,072,814 7,072,814
Total Restricted - 763,480,427 763,480,427 C ommitted to:
Revenue stabilization 228,917,962 - 228,917,962 Managed reserves 182,576,859 - 182,576,859 Public safety, courts, and judicial 658,813 2,334,021 2,992,834 Transportation - 26,616,996 26,616,996 Social services, health and welfare 1,892,893 38,791,924 40,684,817 Housing and community development 46,559,602 18,529,911 65,089,513 Parks, recreation, and cultural 995,508 - 995,508 Debt service - 5,662,300 5,662,300 C apital projects - 167,873,221 167,873,221 Other purposes 39,011,234 - 39,011,234
Total C ommitted 500,612,871 259,808,373 760,421,244 Assigned to:
Public safety, courts, and judicial 13,699,913 - 13,699,913 General public works 5,350,833 - 5,350,833 Social services, health and welfare 9,036,907 - 9,036,907 Housing and community development 3,343,327 - 3,343,327 Parks, recreation, and cultural 304,364 - 304,364 Other purposes 5,027,186 - 5,027,186
Total Assigned 36,762,530 - 36,762,530 Unassigned: 145,469,633 (16,718,127) 128,751,506
Total fund balances 684,547,323 1,006,903,667 1,691,450,990 4,811,331,039$ 1,277,404,243 6,088,735,282
continued
FUND BALANCES
Total liabilities, deferred inflows of resources, and fund balances See accompanying notes to the financial statements.
Exhibit A-2
30
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Fund balances - Total governmental funds 1,691,450,990$
C apital assets used in governmental fund activities are not financial resources and, therefore, are not reported in the funds:
Non-depreciable/non-amortizable assets: Land and Easements 461,458,658$ C onstruction in progress 336,066,329 Equipment under construction 26,629,872 Software in development 20,430,576
Depreciable/amortizable assets: Vehicles and equipment 340,489,420 Software 178,955,958 Library collections 118,851,208 Buildings and improvements 2,007,742,780 Infrastructure 1,195,703,688
Total capital assets 4,686,328,489 Less accumulated depreciation/amortization (1,659,519,620) 3,026,808,869
Some of the C ounty's receivables will not be collected soon enough to pay for the current period's expenditures and, therefore, are reported as deferred inflow in the funds:
Delinquent taxes (net of allowances): Property 24,316,869$ Business license 2,618,259
Sales and use and other taxes 1,048,917 Other charges for services
Lease to component unit 34,925,000 62,909,045
When an asset is recorded in governmental fund financial statements, but the revenue is not available, it is reported as deferred inflow of resources in the funds:
Sales and use and other taxes 23,021,043$ EMS transport and other charges for services 2,515,158 25,536,201
Investment fair value adjustment is recorded in the government-wide statements but not in the (2,655,186) fund financial statements
For debt refundings resulting in defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt should be reported as a deferred outflow of resources or a deferred inflow of resources:
Deferred loss on refunding of debt 53,002,643$ Deferred gain on refunding of debt (6,933,249) 46,069,394
C ertain results experienced by pension plans and OPEB are required to be reported as a deferred outflow or inflow of resources:
Deferred outflow for pension contributions subsequent to the measurement date 273,129,715$
Deferred outflow for change in proportion (pensions) 18,173,024 Deferred outflow for differences between expected
and actual experience (pensions) 41,443,103 Deferred outflow of recognition of pension investments 399,016,828 Deferred outflow for changes in assumptions (pensions) 16,291,949 Deferred inflow for differences between expected
and actual experience (pensions) (62,498,918) Deferred inflow for change in proportion (pensions) (392,522) Deferred outflow for OPEB contributions subsequent to the measurement date 16,526,889 Deferred outflow for change in proportion (OPEB) 55,185 Deferred outflow for differences between expected and actual experience (OPEB) 13,636,719 Deferred outflow for recognition of investments (OPEB) 8,930,075 Deferred outflow for changes in assumptions (OPEB) 65,317,805 Deferred inflow related to differences between actual and expected experience (OPEB) (7,015,555) Deferred inflow for change in assumptions (OPEB) (125,748,662) 656,865,635
C ertain other receivables are accrued only in the government-wide statements 486,917
Internal service funds are used by management to provide certain goods and services to governmental funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position.
Assets: C urrent assets 276,805,729$ C apital assets 253,142,428 Less accumulated depreciation/amortization (161,005,947)
Liabilities (98,301,184) 270,641,026
Long-term liabilities related to governmental fund activities are not due and payable in the current period and, therefore, are not reported in the funds:
General obligation bonds payable, net (2,573,716,885)$ Revenue bonds payable, net (720,587,053) Notes payable (450,382,544) C ompensated absences payable (157,682,822) Landfill closure and postclosure obligation (49,419,018) Obligations under capital leases and installment purchases (2,992,557) Net pension liability (2,194,716,908) Net OPEB liability (15,939,689) Other long-term liabilities (15,973,270) Accrued interest on long-term debt (36,300,568) (6,217,711,314)
Net position of governmental activities (439,598,423)$
Amounts reported for governmental activities in the statement of net position (Exhibit A) are different because:
Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds June 30, 2021
Exhibit A-2 concluded
31Financial Section
Basic Financial Statements
32
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the fiscal year ended June 30, 2021
Exhibit A-3
General Fund
Nonmajor Governmental
Funds
Total Governmental
Funds
3,987,017,016$ 61,508,767 4,048,525,783 57,091,315 19,574,669 76,665,984
492,467,179 351,481,633 843,948,812 37,731,261 323,602,165 361,333,426 6,294,096 85,183 6,379,279
- 24,277,538 24,277,538 25,774,719 12,849,807 38,624,526 8,502,496 9,197,927 17,700,423
612,547 2,323,320 2,935,867 4,615,490,629 804,901,009 5,420,391,638
204,608,479 7,154,904 211,763,383 61,256,531 997,450 62,253,981
734,927,745 67,690,972 802,618,717 93,498,804 113,518,671 207,017,475
378,540,159 376,127,798 754,667,957 88,912,424 253,708,214 342,620,638 38,033,431 14,247,852 52,281,283
Intergovernmental: C ommunity development 67,192,619 109,629,000 176,821,619 Parks, recreation, and cultural 37,909,623 28,374,025 66,283,648 Education - for Public Schools 2,156,536,123 182,761,781 2,339,297,904
C apital outlay: General government administration 23,472,494 8,724,883 32,197,377 Judicial administration 116,469 - 116,469 Public safety 1,721,862 53,787,143 55,509,005 Public works 86,002 58,529,814 58,615,816 Health and welfare 2,590,446 16,940,961 19,531,407 C ommunity development 27,083 22,573,347 22,600,430 Parks, recreation, and cultural 4,374,410 6,679,495 11,053,905
895,579 317,676,444 318,572,023 29,944 128,901,281 128,931,225
3,894,730,227 1,768,024,035 5,662,754,262 720,760,402 (963,123,026) (242,362,624)
7,139,163 727,606,761 734,745,924 (651,171,626) (99,068,047) (750,239,673)
General obligation bonds issued - 254,190,000 254,190,000 Premium on general obligation bonds issued - 36,549,140 36,549,140
- 294,060,000 294,060,000 Lease revenue refunding bonds issued - 55,650,000 55,650,000 Premium on lease revenue refunding bonds issued - 5,682,049 5,682,049
- (293,126,253) (293,126,253) C apital leases - 1,274,161 1,274,161
(644,032,463) 982,817,811 338,785,348 76,727,939 19,694,785 96,422,724
607,819,384 987,208,882 1,595,028,266 684,547,323$ 1,006,903,667 1,691,450,990
continued
C harges for services Fines and forfeitures
REVENUES Taxes Permits, privilege fees, and regulatory licenses
C ommunity development
Intergovernmental
C urrent: General government administration
Parks, recreation, and cultural
Developers' contributions Revenue from the use of money and property Recovered costs
EXPENDITURES
Fund balances, July 1, 2020
Gifts, donations, and contributions Total revenues
Judicial administration Public safety
OTHER FINANCING SOURCES (USES)
Interest and other charges Total expenditures
Health and welfare
Transfers out
Excess (deficiency) of revenues over (under) expenditures
Transfers in
Principal retirement
Public works
Debt service:
General obligation refunding bonds issued
Fund balances, June 30, 2021 See accompanying notes to the financial statements.
Total other financing sources (uses)
Payments to refunded bonds escrow agent
Net change in fund balances
33Financial Section
Basic Financial Statements
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds For the fiscal year ended June 30, 2021
County of Fairfax, Virginia Exhibit A-3 concluded
Net change in fund balances - Total governmental funds 96,422,724$
Amounts reported for governmental activities in the statement of activities (Exhibit A-1) are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives and reported as depreciation/amortization expense.
C apital outlays 199,624,409$ Less depreciation/amortization expense (125,281,685) 74,342,724
In the statement of activities, the gain or loss on the disposition of capital assets is reported. However, in the governmental funds, only the proceeds from sales are reported, which increase fund balance. Thus, the difference is the net book value (i.e., depreciated cost) of the capital asset dispositions. (34,515,651)
C ertain transactions such as donations of capital assets increase net position in the statement of activities, but do not appear in the governmental funds because they are not financial resources. 38,086,348
Build America Bonds interest subsidy accrual is not recognized as revenue in the fund statements (50,280)
Some of the C ounty's receivables will not be collected soon enough to pay for the current period's expenditures and, therefore, are reported as deferred inflow in the funds:
Delinquent property taxes 3,732,608$ Delinquent business license taxes (131,440) Other charges for services 289,823 3,890,991
Some revenues will not be collected for several months after the fiscal year ends, hence, they are not considered "available" revenues and are deferred inflow of resources in the governmental funds:
Sales and use and other taxes 1,749,996$ EMS transport and other charges for services 1,808,170 3,558,166
Investment fair value adjustment is recorded in the government-wide statements but not in the fund financial statements (9,964,013)
The receipt of principal payments for the lease to the component unit does not result in a revenue in the statement of activities. (1,685,000)
The issuance of long-term debt, including premiums, is reported as other financing sources in the governmental funds and thus, increases fund balance. In the government-wide statements, however, issuing debt increases long-term liabilities in the statement of net position and does not affect the statement of activities. The following were issued:
Series 2021A General Obligation Bonds (290,739,140)$ Series 2020B General Obligation Refunding Bonds (294,060,000) Lease revenue refunding bonds (61,332,049) (647,405,350) Obligations under capital leases and installment purchases (1,274,161)
OPEB costs are recognized as expenditures in the fund statements, but are deferred and amortized in the government-wide statements, resulting in a net difference. (1,776,737)
C ertain other long-term liabilities are recognized only in the government-wide statements, resulting in a net difference. 861,569
The repayment of the principal amounts of long-term debt is reported as an expenditure or as an other financing use when debt is refunded in governmental funds and thus, reduces fund balance. However, the principal payments reduce the liabilities in the statement of net position and do not result in an expense in the statement of activities.
Principal repayments of matured bonds, notes, and loans 313,964,000$ Payment to escrow agent to refund bonds 293,126,253 Principal payments of capital leases and installment purchases 4,608,023 611,698,276
Interest on long-term debt is reported as an expenditure in the governmental funds when it is due. In the statement of activities, however, interest expense is affected as this interest accrues and as bond-related items are amortized. This difference in interest reporting is as follows:
Accrued interest on bonds, loans, and capital leases (12,012,325)$ Amortization of bond premiums and discounts 50,811,781 Amortization of deferred gains on bond refundings 1,404,948 Amortization of deferred losses on bond refundings (11,168,308) 29,036,096
Under the modified accrual basis of accounting used in the governmental funds, expenditures for the following are not recognized until they mature. In the statement of activities, however, they are reported as expenses and liabilities as they accrue. The timing differences are as follows:
Landfill closure and postclosure costs (585,996)$ C ompensated absences (10,693,983) Net pension liability (139,322,411) (150,602,390)
Internal service funds are used by management to provide certain goods and services to governmental funds. The change in net position is reported with governmental activities. 8,812,749
C hange in net position of governmental activities 20,710,222$
34
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statement of Net Position Proprietary Funds June 30, 2021
Business-type Activities -
Enterprise Fund Integrated Sewer
System
104,322,559$ 271,955,583 Accounts receivable 568,834 4,662 Due from intergovernmental units (net of allowance) 64,973,713 2,352
- 1,577,996 453,527 3,265,136
Total unrestricted current assets 170,318,633 276,805,729
235,966,039 - Temporary investments with fiscal agents 17,941,505 -
32,570,543 - Total restricted current assets 286,478,087 -
Total current assets 456,796,720 276,805,729 Long-term assets:
Non-depreciable/non-amortizable: Land 17,407,323 1,938,688 Easements 656,441 - C onstruction in progress 285,175,888 14,975,236 Equipment under construction - 3,965,690
Depreciable/amortizable: Vehicles and equipment 17,164,967 203,248,700 Software - 2,200,587 Purchased capacity 1,154,792,912 - Buildings and improvements 91,850,481 22,215,737 Infrastructure 1,461,362,424 4,597,790 Accumulated depreciation (793,296,772) (159,294,628) Accumulated amortization (491,765,757) (1,711,319)
Total capital assets, net 1,743,347,907 92,136,481
Accounts receivable 794,967 - Total other long-term asset 794,967 -
Total long-term assets 1,744,142,874 92,136,481 2,200,939,594 368,942,210
DEFERRED OUTFLOWS OF RESOURCES
5,387,683 - Deferred outflow for change in proportion (pensions) 1,474,940 -
1,108,033 - Deferred outflow for changes in assumptions (pensions) 257,664 - Deferred outflow of recognition of pension investments 3,897,205 -
435,536 -
359,607 - Deferred outflow for recognition of investments (OPEB) 235,490 - Deferred outflow for changes in assumptions (OPEB) 1,722,463 - Deferred amounts from the refunding of debt 36,004,193 -
Total deferred outflows of resources 50,882,814$ - See accompanying notes to the financial statements. continued
Governmental Activities -
Internal Service Funds
ASSETS C urrent assets:
Equity in pooled cash and temporary investments
C apital assets:
Other long-term asset
Total assets
Investments with fiscal agents
Deferred outflow for pension contributions subsequent to the measurement date
Equity in pooled cash and temporary investments
Inventories of supplies
Restricted assets:
Interfund receivables
Deferred outflow for differences between expected and actual experience (pensions)
Deferred outflow for OPEB contributions subsequent to the measurement date Deferred outflow for differences between expected and actual experience (OPEB)
Exhibit A-4
35Financial Section
Basic Financial Statements
Business-type Activities -
Enterprise Fund Integrated Sewer
System
1,962,745$ 9,229,064
Accrued salaries and benefits 2,352,592 2,412,597 C ontract retainages 27,957,265 - Accrued interest payable 6,238,664 -
36,133,788 - C ompensated absences payable 1,557,921 1,679,723 Insurance and benefit claims payable - 26,291,000
76,202,975 39,612,384
799,211,374 - C ompensated absences payable 1,632,067 2,192,800 Insurance and benefit claims payable - 56,496,000 Net pension liability 41,009,432 - Net other postemployment benefit liability 420,338 -
842,273,211 58,688,800 918,476,186 98,301,184
DEFERRED INFLOWS OF RESOURCES
490,250 - Deferred inflow for change in proportion (pensions) 208,695 -
185,004 - Deferred inflow for change in proportion (OPEB) 12,803 - Deferred inflow for change in assumptions (OPEB) 3,316,055 - Deferred gain on refunding 4,763,412 -
Total deferred inflow of resources 8,976,219 -
1,207,780,108 92,136,481
Debt service 17,941,505 - 98,648,390 178,504,545
1,324,370,003$ 270,641,026
Governmental Activities -
Internal Service Funds
Unrestricted Net position
Total long-term liabilities Total liabilities
NET POSITION Net investment in capital assets
Deferred inflow related to differences between actual and expected experience (OPEB)
Restricted for:
Total current liabilities Long-term liabilities:
LIABILITIES C urrent liabilities:
Deferred inflow related to differences between actual and expected experience (pensions)
Revenue bonds payable, net
Accounts payable and accrued liabilities
Revenue bonds payable, net
Exhibit A-4 concluded
36
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the fiscal year ended June 30, 2021
Exhibit A-5
Business-type Activities -
Enterprise Fund Integrated Sewer
System OPERATING REVENUES:
216,447,771$ 309,103,449 - 86,554
216,447,771 309,190,003 OPERATING EXPENSES:
39,859,440 33,856,977 16,915,830 3,325,630
- 27,599,123 - 189,068,507
65,629,470 17,735,447 52,419,831 33,266,019
- 12,002,990 174,824,571 316,854,693 41,623,200 (7,664,690)
NONOPERATING REVENUES (EXPENSES): 34,714,848 -
790,769 518,976 Interest expense (19,458,780) (60,241) Bond issuance costs (993,208) -
55,287 473,685 15,108,916 932,420 56,732,116 (6,732,270)
C apital contributions 1,475,624 51,270 - 15,493,749
C hange in net position 58,207,740 8,812,749 1,266,162,263 261,828,277 1,324,370,003$ 270,641,026
See accompanying notes to the financial statements.
Governmental Activities -
Internal Service Funds
Materials and supplies Equipment operation and maintenance
Personnel services
C harges for services Recovered costs
Total operating revenues
Gain (loss) before contributions and transfers
Risk financing and benefit payments Depreciation and amortization Professional consultant and contractual services
Net position, June 30, 2021
Transfers in
Net position, July 1, 2020
Total nonoperating revenues (expenses)
Operating gain (loss)
Gain on disposal of capital assets
Interest revenue
Other Total operating expenses
Availability fees
37Financial Section
Basic Financial Statements
County of Fairfax, Virginia Statement of Cash Flows Proprietary Funds For the fiscal year ended June 30, 2021
Exhibit A-6
Business-type Activities -
Enterprise Fund Integrated Sewer
System
213,832,425$ - - 309,218,509
(68,520,776) (63,838,927) (37,093,208) (33,756,409)
- (196,282,511) - (4,356,976)
108,218,441 10,983,686
- 15,493,749 - 15,493,749
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Availability fees received 34,714,848 - C apital grants received 51,862 - Increase in contracts payable 4,041,052 -
(29,088,088) - (20,885,736) - 270,107,705 -
Escrow for refunded bonds (29,269,064) - (993,208) -
55,287 530,680 (98,100,207) (17,768,178) (30,647,350) -
Principal payments on obligations under capital leases - (1,199,341) Interest payments on obligations under capital leases - (60,241)
99,987,101 (18,497,080)
25,778,477 - (34,116,478) -
402,200 518,976 (7,935,801) 518,976
200,269,741 8,499,331 C ash and cash equivalents, July 1, 2020 140,018,857 263,456,252 C ash and cash equivalents, June 30, 2021 340,288,598$ 271,955,583
41,623,200$ (7,664,690) Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
65,629,470 17,735,447
- 16,711 (2,615,346) (1,541)
- 13,336 (19,188) 277,328 306,938 - 527,135 501,421
Increase in pension and OPEB related deferred outflows and deferred inflows 2,156,418 - 609,814 105,674
- - 66,595,241 18,648,376
Net cash provided by operating activities 108,218,441$ 10,983,686
1,423,762$ - Gain on disposal of capital assets - 473,685
19,939,089 - Amortization of bond premium 2,371,450 -
3,969,019 - 2,002 -
Removal of purchased capacity through credit of UOSA debt 177,000 - UOSA adjustment to bond payments (1,893) - Net decrease in long-term debt resulting from the sale of purchased capacity (365,706) -
Payments to employees
Governmental Activities -
Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users Receipts from interfund services provided Payments to suppliers and contractors
Net cash provided by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds Net cash provided by noncapital financing activities
C laims and benefits paid Payments for interfund services used
Interest payments on sewer revenue bonds Revenue bonds issued, including premium
Payment of bond issuance costs
Principal payments on sewer revenue bonds
CASH FLOWS FROM INVESTING ACTIVITIES Sales of restricted investments Purchases of restricted investments Interest received
Proceeds from sale of capital assets Purchase of capital assets, other than purchased capacity Acquisition of purchased capacity
Net cash used in capital and related financing activities
Decrease in accounts receivable Increase in intergovernmental receivables Decrease in interfund receivables (Increase)/Decrease in inventories of supplies
Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents
Depreciation and amortization C hange in assets and liabilities:
Operating income (loss)
Reconciliation of operating income (loss) to net cash provided by operating activities:
Decrease in other assets Increase in accounts payable and accrued liabilities
Increase in accrued salaries and benefits Increase in due to intergovernmental units
See accompanying notes to the financial statements.
Total adjustments to operating income
Noncash investing, capital, and financing activities:
Increase in fair value of investments not classified as cash and cash equivalents
C apital contributions - sewer lines, manholes, and equipment
Net increase in long-term debt resulting from the issuance of loans/revenue bonds by UOSA
Increase in deferred gain recognized resulting from the issuance of refunded revenue bonds
38
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statement of Fiduciary Net Position Trust and Custodial Funds June 30, 2021
Exhibit A-7
Pension/OPEB Trust Funds
C ustodial Funds
14,218,046$ 3,011,029 C ash collateral for securities lending 163,689,487 -
- 171,806 C ontributions receivable 23,095,209 -
16,117,817 - 158,576,311 -
Buildings and improvements 26,328 - Vehicles and equipment 31,410 -
U.S. Government and agency securities 358,422,272 - Asset-backed securities 266,604,457 - C orporate and other bonds 604,238,906 - C ommon and preferred stock 1,726,685,525 - Short-term investments 453,469,787 - Investment in pooled funds 6,099,599,271 -
Total assets 9,884,774,826 3,182,835
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - -
21,851,385 103 155,359,012 -
163,689,487 - - 450,993 - 790,526
C ompensated absences 531,050 - Total liabilities 341,430,934 1,241,622
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - -
Net position restricted for OPEB benefits 423,896,368 - Net position restricted for pension benefits 9,119,447,524 -
- 1,941,213 other governments
Total net position 9,543,343,892$ 1,941,213
Net position restricted for individuals, organizations, and
ASSETS
Accounts receivable
Accrued interest and dividends receivable
Accounts payable and accrued liabilities
Equity in pooled cash and temporary investments
Investments:
Receivable from sale of pension investments
LIABILITIES
Performance and other deposits
NET POSITION
Payable for purchase of pension investments Liabilities for collateral received under securities
Due to intergovernmental units lending agreements
39Financial Section
Basic Financial Statements
Statement of Changes in Fiduciary Net Position Trust and Custodial Funds For the fiscal year ended June 30, 2021
Exhibit A-8County of Fairfax, Virginia
Pension/OPEB Trust Funds
C ustodial Funds
365,632,588$ - 67,583,443 -
Other 97,913 - 433,313,944 -
From investment activities: Net appreciation in fair value of investments 2,066,925,441 - Interest 61,520,512 9,035 Dividends 34,693,808 -
Total income from investment activities 2,163,139,761 9,035 Less investment activities expenses:
Management fees 92,650,184 588 Other 4,118,050 -
Total investment activities expenses 96,768,234 588 Net income from investment activities 2,066,371,527 8,447
From securities lending activities: Securities lending income 2,165,935 -
Less securities lending expenses: Management fees 653,144 -
Total securities lending activities expenses 653,144 -
Net income from securities lending activities 1,512,791 - Net investment income 2,067,884,318 8,447
C ollections: Taxes and fees for other governments - 17,520,943 Intergovernmental for individuals - 446,424 Penalty for other governments and organizations - 927,395 Other for organizations and individuals - 1,273,268
Total collections - 20,168,030 Total additions 2,501,198,262 20,176,477
DEDUCTIONS 583,865,128 -
5,489,916 - 3,994,193 72,765
Payments: Taxes and fees to other governments - 17,725,631 Intergovernmental collections to individuals - 530,056 Penalties to other governments and organizations - 927,489 Other collections to organizations and individuals - 838,600
Total payments - 20,021,776 Total deductions 593,349,237 20,094,541
1,907,849,025 81,936 7,635,494,867 -
Prior period adjustment - 1,859,277 9,543,343,892$ 1,941,213
See accompanying notes to the financial statements. Net position, June 30, 2021
Benefits Refunds of contributions Administrative expenses
C hange in net position Net position, July 1, 2020
Total contributions Investment income:
ADDITIONS C ontributions:
Employer Plan members
40
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Combining Statement of Net Position Component Units June 30, 2021
Public Schools
Redevelopment and Housing
Authority Park
Authority
550,215,017$ 24,333,274 38,729,141 228,513 41,133,145 -
- 2,205,000 -
15,397,845 5,423,898 40,160 12,538 151,743 -
- 28,389,985 - Due from intergovernmental units 68,572,705 - 185,434 Due from primary government 235,842 - 4,739,473
1,399,420 - 146,513 88,906 3,325,914 177,570
Equity in pooled cash and temporary investments 121,248,325 - 17,271,452 - 70,853,116 - - 9,108,543 - - 1,212,739 -
46,837,095 44,390,873 399,461,399 321,205,883 3,876,835 13,211,630
Software in development 777,072 - -
407,108,608 7,386,182 14,063,014 Software 13,260,834 - -
20,612,968 - - 4,363,348,374 235,420,384 540,743,404
(2,474,902,989) (147,896,675) (294,267,557) Accumulated amortization (9,073,162) - -
3,446,573,794 329,314,956 734,501,633
DEFERRED OUTFLOWS OF RESOURCES
432,392,843 3,738,600 7,137,297 Deferred outflow for change in proportion (pensions) 37,288,238 821,196 233,364
46,739,211 790,639 1,581,217 Deferred outflow for recognition of pension investments 313,784,588 2,780,860 5,561,503 Deferred outflow for changes in assumptions (pensions) 207,159,963 183,857 367,700
28,535,246 299,996 762,640 Deferred outflow for change in proportion (OPEB) 7,968,631 - 264,031
64,349,797 249,188 635,654 Deferred outflow for recognition of investments (OPEB) 5,056,032 163,182 416,261 Deferred outflow for changes in assumptions (OPEB) 11,416,489 1,193,574 3,044,686
Total deferred outflows of resources 1,154,691,038$ 10,221,092 20,004,353 See accompanying notes to the financial statements.
Buildings and improvements
Vehicles and equipment
Deferred outflow for pension contributions subsequent to the measurement date
Deferred outflow for differences between expected and actual experience (pensions)
Deferred outflow for OPEB contributions subsequent to the measurement date
Deferred outflow for differences between expected and actual experience (OPEB)
ASSETS Equity in pooled cash and temporary investments C ash in banks/with fiscal agents/escrow Investments Receivables (net of allowances):
Accounts Accrued interest
C onstruction in progress
Investments C apital assets:
Notes
Inventories of supplies Prepaid and other assets
C ash with fiscal agents
Restricted assets:
Deposit held in trust
Non-depreciable/non-amortizable: Land and easements
Depreciable/amortizable:
Library collections
Accumulated depreciation
Total assets
41Financial Section
Basic Financial Statements
Exhibit A-9
Economic Development
Authority
Total C omponent
Units
- 613,277,432 - 41,361,658 - 2,205,000
- 20,861,903 - 164,281 - 28,389,985 - 68,758,139 Due from intergovernmental units
470,300 5,445,615 Due from primary government - 1,545,933 - 3,592,390
4,000,000 142,519,777 Equity in pooled cash and temporary investments - 70,853,116 - 9,108,543 - 1,212,739
- 490,689,367 - 338,294,348 - 777,072 Software in development
19,289 428,577,093 - 13,260,834 Software - 20,612,968
1,176,811 5,140,688,973 (19,199) (2,917,086,420)
(1,031,248) (10,104,410) Accumulated amortization 4,615,953 4,515,006,336
DEFERRED OUTFLOWS OF RESOURCES
959,683 444,228,423 94,363 38,437,161 Deferred outflow for change in proportion (pensions)
182,750 49,293,817 642,774 322,769,725 Deferred outflow for recognition of pension investments 42,497 207,754,017 Deferred outflow for changes in assumptions (pensions)
46,987 29,644,869 - 8,232,662 Deferred outflow for change in proportion (OPEB)
40,288 65,274,927 26,382 5,661,857 Deferred outflow for recognition of investments (OPEB)
192,973 15,847,722 Deferred outflow for changes in assumptions (OPEB) 2,228,697 1,187,145,180 Total deferred outflows of resources
continued
Restricted assets:
C ash with fiscal agents
Inventories of supplies Prepaid and other assets
Notes
ASSETS Equity in pooled cash and temporary investments C ash in banks/with fiscal agents/escrow Investments Receivables (net of allowances):
Accounts Accrued interest
Depreciable/amortizable:
Deposit held in trust Investments
C apital assets:
Land and easements C onstruction in progress
Non-depreciable/non-amortizable:
Accumulated depreciation
Total assets
Equipment
Library collections Buildings and improvements
Deferred outflow for pension contributions subsequent to the measurement date
Deferred outflow for differences between expected and actual experience (pensions)
Deferred outflow for OPEB contributions subsequent to the measurement date
Deferred outflow for differences between expected and actual experience (OPEB)
42
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Combining Statement of Net Position Component Units June 30, 2021
Public Schools
Redevelopment and Housing
Authority Park
Authority
48,118,697$ 5,428,436 5,500,106 Accrued salaries and benefits 93,914,708 1,003,133 4,347,871
15,037,923 - 204,598 Accrued interest payable 980,521 14,629,945 22,795
1,917,045 1,682,405 - Due to primary government 196,515 - 135,302
18,394,983 955,593 12,309,294 17,116,723 2,126,939 814,249
Revenue bonds payable, net - 715,457 - Notes payable - 26,610,170 - C ompensated absences payable 27,334,200 476,932 2,308,319 Obligations under capital leases and installment purchases 28,305,987 - - Insurance and benefit claims payable 30,833,347 - - Loan from primary government - - 645,300 Unearned rent - - -
Revenue bonds payable, net - 18,970,625 - Notes payable - 61,877,402 -
11,714,658 447,459 3,466,319 Obligations under capital leases and installment purchases 81,486,318 - - Insurance and benefit claims payable 41,283,388 - - Net OPEB liability 387,461,319 291,271 743,003 Loan from primary government - - 8,954,100 Unearned rent 4,154,666 - - Net pension liability 4,115,292,996 29,262,385 58,522,476
Total liabilities 4,923,543,994 164,478,152 97,973,732
DEFERRED INFLOWS OF RESOURCES
178,149,469 349,819 699,611 Deferred inflow for change in proportion and assumptions (pensions) 14,990,759 1,191,418 2,973,122
24,054,938 128,198 327,019 Deferred recognition of OPEB investments 24,831,484 - - Deferred inflow for change in proportion (OPEB) 370,725 124,246 - Deferred inflow for change in assumptions (OPEB) 87,134,202 2,297,846 5,861,575 Reduction of capital lease 3,044,188 - -
Total deferred inflow of resources 332,575,765 4,091,527 9,861,327
2,564,344,454 76,552,671 663,612,490
36,335,113 - - - - 700,000
Housing - 47,575,932 - C apital projects 67,602,452 - 34,303,368 E.C . Lawrence Trust - Nonexpendable reserve - - 1,507,926
(3,323,136,946) 46,837,766 (53,452,857) (654,854,927)$ 170,966,369 646,670,927
NET POSITION
C ompensated absences payable
Portion due or payable after one year:
Performance and other deposits
Deferred inflow related to differences between actual and expected experience (pensions)
Deferred inflow related to differences between actual and expected experience (OPEB)
See accompanying notes to the financial statements.
Repair and replacement
Unrestricted (deficit) Net position
Net investment in capital assets Restricted for:
Grant and education programs
LIABILITIES Accounts payable and accrued liabilities
Due to intergovernmental units
Unearned revenue
C ontract retainages
Portion due or payable within one year: Long-term liabilities:
43Financial Section
Basic Financial Statements
Exhibit A-9 concluded
Economic Development
Authority
Total C omponent
Units
108,651 59,155,890 361,649 99,627,361 Accrued salaries and benefits
- 15,242,521 - 15,633,261 Accrued interest payable - 3,599,450 - 331,817 Due to primary government
4,000,000 35,659,870 - 20,057,911
- 715,457 Revenue bonds payable, net - 26,610,170 Notes payable
217,023 30,336,474 - 28,305,987 Obligations under capital leases and installment purchases - 30,833,347 Insurance and benefit claims payable - 645,300 Loan from primary government
201,343 201,343 Unearned rent
- 18,970,625 Revenue bonds payable, net - 61,877,402 Notes payable
335,739 15,964,175 - 81,486,318 Obligations under capital leases and installment purchases - 41,283,388 Insurance and benefit claims payable
47,091 388,542,684 Net OPEB liability - 8,954,100 Loan from primary government
74,480 4,229,146 Unearned rent 6,763,774 4,209,841,631 Net pension liability
12,109,750 5,198,105,628 Total liabilities
DEFERRED INFLOWS OF RESOURCES
80,858 179,279,757 1,040,371 20,195,670 Deferred inflow for change in proportion (pensions)
20,727 24,530,882 - 24,831,484 Deferred recognition of OPEB investments
182,168 677,139 Deferred inflow for change in proportion (OPEB) 371,508 95,665,131 Deferred inflow for change in assumptions (OPEB)
- 3,044,188 Reduction of capital lease 1,695,632 348,224,251 Total deferred inflow of resources
145,653 3,304,655,268
- 36,335,113 - 700,000 - 47,575,932 Housing - 101,905,820 C apital projects - 1,507,926 E.C . Lawrence Trust
(7,106,385) (3,336,858,422) (6,960,732) 155,821,637
Due to intergovernmental units
Unearned revenue Performance and other deposits Long-term liabilities:
LIABILITIES Accounts payable and accrued liabilities
C ontract retainages
Portion due or payable after one year:
C ompensated absences payable
NET POSITION
Portion due or payable within one year:
C ompensated absences payable
Net investment in capital assets Restricted for:
Grant and education programs Repair and replacement
Unrestricted (deficit) Net position
Deferred inflow related to differences between actual and expected experience (pensions)
Deferred inflow related to differences between actual and expected experience (OPEB)
44
Basic Financial Statements
County of Fairfax, Virginia
County of Fairfax, Virginia Annual Comprehensive Financial Report
Combining Statement of Activities Component Units For the fiscal year ended June 30, 2021
Public Schools: Education 3,320,812,299$ 76,892,323 411,859,293 194,679,133 Redevelopment and Housing Authority: C ommunity development 129,242,102 41,444,041 90,915,113 - Park Authority:
Parks, recreation, and cultural 101,775,493 30,993,539 - 25,000,214 Economic Development Authority:
C ommunity development 63,793,551 - - 1,750,000 3,615,623,445$ 149,329,903 502,774,406 221,429,347
General revenues: Grants and contributions not restricted to specific programs Revenue from the use of money Revenue from primary government Other Total general revenues C hange in net position Net position, July 1, 2020, as previously stated Prior period adjustment Net position, July 1, 2020, as restated Net position, June 30, 2021 See accompanying notes to the financial statements.
Total component units
Functions/Programs Expenses
Program Revenues
C harges for
Services
Operating Grants and
C ontributions
C apital Grants and
C ontributions
45Financial Section
Basic Financial Statements
Exhibit A-10
(2,637,381,550) - - - (2,637,381,550)
- 3,117,052 - - 3,117,052
- - (45,781,740) - (45,781,740)
- - - (62,043,551) (62,043,551) (2,637,381,550) 3,117,052 (45,781,740) (62,043,551) (2,742,089,789)
571,864,424$ - 5,171,583 - 577,036,007 62,628 940,518 70,549 - 1,073,695
2,143,322,211 4,079,176 52,855,354 62,072,216 2,262,328,957 3,438,640 - - - 3,438,640
2,718,687,903 5,019,694 58,097,486 62,072,216 2,843,877,299 81,306,353 8,136,746 12,315,746 28,665 101,787,510
(759,128,905) 162,829,623 634,355,181 (6,989,397) 31,066,502 22,967,625 - - - 22,967,625
(736,161,280) 162,829,623 634,355,181 (6,989,397) 54,034,127 (654,854,927)$ 170,966,369 646,670,927 (6,960,732) 155,821,637
Net (Expense) Revenue and Changes in Net Position
Park Authority
Total C omponent
Units
Economic Development
Authority
Redevelopment
and Housing Authority
Public Schools
County of Fairfax, Virginia Annual Comprehensive Financial Report46
Basic Financial Statements
FINANCIAL SECTION 47
COUNTY OF FAIRFAX, VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2021
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The County of Fairfax, Virginia, (the County) is organized under the Urban County Executive form of
government (as defined under Virginia law). The governing body of the County is the Board of Supervisors
(the Board), which makes policies for the administration of the County. The Board is comprised of ten
members: a Chairman, elected at large for a four-year term, and one member from each of nine supervisor
districts, elected for a four-year term by the voters of the district in which the member resides. The Board
appoints a County Executive to act as the administrative head of the County. The County Executive serves at
the pleasure of the Board, carries out the policies established by the Board, directs business and administrative
procedures, and recommends officers and personnel to be appointed by the Board.
The financial statements of the County have been prepared in conformity with generally accepted accounting
principles (GAAP) as applied to government units in the United States of America. The Governmental
Accounting Standards Board (GASB) is the accepted primary standard-setting body for establishing
governmental accounting and financial reporting principles. The County’s significant accounting policies are
described below.
1. Reporting Entity
As required by GAAP, the accompanying financial statements present the financial data of the
County (the primary government) and its component units. The financial data of the component units
are included in the County’s basic financial statements because of the significance of their operational
or financial relationships with the County. The County and its component units are together referred
to herein as the reporting entity.
Blended Component Units
Blended component units are entities that are legally separate from the County but that are so closely
related to the County that they are, in essence, extensions of the County. The blended component
units that are reported as part of the primary government are:
Solid Waste Authority of Fairfax County (SWA) - The SWA is considered a blended
component unit because the Board of Supervisors comprises the Board of Directors of the
SWA and has the ability to impose its will on the SWA. The SWA is authorized under the
Virginia Water and Waste Authorities Act and was created by the Board of Supervisors on
June 29, 1987. The SWA has financed the construction of a solid waste to energy facility,
which is contractually owned and operated by a commercial entity in accordance with
agreements between the County, the SWA, and the commercial entity. The County has
assumed the responsibility for the management of the arrangement between the SWA and the
commercial entity and for providing sufficient solid waste to result in a financially viable
operation; associated activity is reported in a special revenue fund of the County, the Refuse
Disposal Fund, but the Authority as an entity is not engaged in financial activity. Separate
financial statements are not prepared for the SWA.
Small District One - The Board of Supervisors created Small District One, which is located
within the Dranesville Magisterial District, in 1970 to provide for the construction of a
BASIC FINANCIAL STATEMENTS
48 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
community center and the operation of its social, cultural, educational, and recreational
facilities. This small district is reported as a separate special revenue fund of the County, the
McLean Community Center Fund, it is governed by the Board, and the County maintains
operational and management responsibility for the district. Separate financial statements are
not prepared for Small District One.
Small District Five - The Board of Supervisors created Small District Five, which was located
within the Sully, Dranesville and Hunter Mill Magisterial Districts, in 1975 to provide for the
construction of a community center and the operation of its social, cultural, educational, and
recreational facilities. In March 2006, the Board of Supervisors voted to change the
boundaries, placing all boarders within the Hunter Mill Magisterial District. This change
became effective January 1, 2007. This small district is reported as a separate special revenue
fund of the County, the Reston Community Center Fund, it is governed by the Board, and the
County maintains operational and management responsibility for the district. Separate
financial statements are not prepared for Small District Five.
Dulles Rail Phase I Transportation Improvement District - The Board of Supervisors created
the Dulles Rail Phase I Transportation Improvement District in 2004 to provide funds for the
construction of certain transportation improvements in the district. This district is reported as
a separate special revenue fund of the County. The District is governed by the members of
the Board of Supervisors representing the property owners within the district, and the County
management oversees its operation. Separate financial statements are not prepared for the
Dulles Rail Phase I Transportation Improvement District.
Dulles Rail Phase II Transportation Improvement District - The Board of Supervisors created
the Dulles Rail Phase II Transportation Improvement District in 2009 to provide funds for the
construction of certain transportation improvements in the district. This district is reported as
a separate special revenue fund of the County. The District is governed by the members of
the Board of Supervisors representing the property owners within the district, and the County
management oversees its operation. Separate financial statements are not prepared for the
Dulles Rail Phase II Transportation Improvement District.
Mosaic District Community Development Authority (CDA) - The CDA is an independent
authority legally authorized by an act of the Virginia General Assembly and was formally
created by the Board of Supervisors in April 2009. The CDA’s purpose is to assist in the
development of infrastructure improvements within the district. This authority presentation
consists of a special revenue, a debt service fund, and a capital projects fund. This authority
provides services that exclusively benefit the County and was established with a tax
increment financing agreement. Separate financial statements are not prepared for the CDA.
Discretely Presented Component Units
The columns for the component units in the financial statements include the financial data of the
County’s other component units. They are presented in separate columns to emphasize that they are
legally separate from the County. Separate financial statements of the component units can be
obtained by writing to the Financial Reporting Division, Department of Finance, 12000 Government
Center Parkway, Suite 214, Fairfax, Virginia 22035. All of the component units have a fiscal year
end of June 30. The discretely presented component units are:
Fairfax County Public Schools (Public Schools) - Public Schools is responsible for
elementary and secondary education within the County. The School Board is elected by
County voters. Public School systems do not have taxing authority under Virginia Code;
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 49
Public Schools is fiscally dependent on the County. Public Schools operations are funded
primarily by the County’s General Fund, and the County issues general obligation debt for
Public Schools’ capital projects.
Fairfax County Redevelopment and Housing Authority (FCRHA) - FCRHA plans,
coordinates, and directs the low income housing programs within the County under the
Virginia Housing Authorities Law. FCRHA was approved by a voter referendum in
November 1965 and was activated by the Board of Supervisors in February 1966. FCRHA is
a political subdivision of and reports to the Commonwealth of Virginia. The Board appoints
FCRHA’s Board of Commissioners, and the County provides certain managerial and related
financial assistance to FCRHA.
Fairfax County Park Authority (Park Authority) - The Park Authority was created by the
Board of Supervisors of the County on December 6, 1950, to maintain and operate the public
parks and recreational facilities located in the County. The Board appoints the Park
Authority’s governing board, and the County provides funding for the Park Authority’s
General Fund and one of its capital projects funds. A memorandum of understanding
currently in effect between the County and the Park Authority defines the roles of the County
and the Park Authority.
Fairfax County Economic Development Authority (EDA) - The EDA is an independent
authority legally authorized by an act of the Virginia General Assembly and was formally
created by resolutions of the Board of Supervisors. The EDA’s mission is to create demand
for the new commercial construction that expands the tax base and contributes to the quality
of life and overall prosperity of the County. The Board appoints the seven members of the
EDA’s commission which appoints the EDA’s President. The Board appropriates funds
annually to the EDA for operating expenditures incurred in carrying out its mission.
Related Organizations
The Board of Supervisors is also responsible for appointing the members of the boards of Fairfax
Water, and the Industrial Development Authority of Fairfax County (IDAFC). The IDAFC does not
have a significant operational or financial relationship with the County. Fairfax Water bills and
collects for the sales of sewer services on behalf of the County’s sewer system. During fiscal year
2021, Fairfax Water collected approximately $202.2 million on behalf of the County, and as of June
30, 2021, the County has receivables of approximately $51.0 million due from Fairfax Water.
Joint Ventures
The County is a participant in the Upper Occoquan Service Authority (UOSA). UOSA is a joint
venture created under the provisions of the Virginia Water and Waste Authorities Act to construct,
finance, and operate the regional sewage treatment facility in the upper portion of the Occoquan
Watershed. UOSA was formed on March 3, 1971, by a concurrent resolution of the governing bodies
of Fairfax and Prince William Counties and the Cities of Manassas and Manassas Park. The
governing body of UOSA is an eight-member board of directors consisting of two members from
each participating jurisdiction appointed to four-year terms. The UOSA Board of Directors adopts an
annual operating budget based on projected sewage flows. The County has no explicit and
measurable financial interest in UOSA but does have an ongoing financial responsibility for its share
of UOSA’s operating costs, construction costs and annual debt service. Complete financial
statements of UOSA can be obtained by writing to UOSA, 14631 Compton Road, Centreville,
Virginia 20121.
BASIC FINANCIAL STATEMENTS
50 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The County is a participant in the Northern Virginia Regional Park Authority (NVRPA). NVRPA is
a joint venture created under the Virginia Park Authorities Act of 1959 to protect and preserve
Northern Virginia’s rich heritage of woods, meadows, lakes, and streams. The governing body of
NVRPA is comprised of two members from each of the 6 member jurisdictions: Fairfax, Arlington,
and Loudoun Counties, and the Cities of Alexandria, Falls Church, and Fairfax. Each member
jurisdiction provides contributions in direct proportion to its share of the region’s population. The
County’s contributions are accounted for in the County Construction capital projects fund. The
County has no explicit and measurable financial interest in NVRPA. Complete financial statements
of NVRPA can be obtained by writing to NVRPA, 5400 Ox Road, Fairfax Station, Virginia 22039.
Jointly Governed Organization
The State Route 28 Highway Transportation Improvement District (District) was created in 1987
under the provisions of the Transportation Improvements District Act by the County and Loudoun
County, Virginia, in conjunction with the Commonwealth of Virginia Transportation Board (CVTB),
for the purpose of undertaking various improvements to State Route 28. The District is governed by a
nine-member Commission comprised of four members from each of the Boards of Supervisors of the
County and Loudoun County and the Chairman of the CVTB or his designee. The County has no
financial interest in the District. See Note J-8 for additional information related to the District.
2. Basis of Presentation
Government-wide Statements
The statement of net position and the statement of activities display information about the primary
government (the County) and its component units. These statements include the financial activities of
the overall government, except for fiduciary activities. Eliminations have been made to avoid the
double-counting of interfund activities. These statements distinguish between the governmental and
business-type activities of the County. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other non-exchange transactions. Business-type activities are
financed primarily by fees charged to external parties. Likewise, the primary government is reported
separately from certain legally separate component units for which the primary government is
financially accountable.
The statement of activities presents a comparison between direct expenses and program revenues for
each activity of the County. Direct expenses are those that are specifically associated with a program
or function and, therefore, are clearly identifiable to a particular activity. Program revenues include:
(a) fees, fines, and charges paid by the recipients of goods or services offered by the programs and,
(b) grants and contributions that are restricted to meet the operations or capital requirements of a
particular program. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements
The accounts of the reporting entity are organized on the basis of funds, each of which is considered
to be a separate accounting entity. The operations of each fund are accounted for in a separate set of
self-balancing accounts comprised of assets, liabilities, fund equity, revenues, and expenditures or
expenses, as appropriate. The fund financial statements provide information about the County’s
funds, including its fiduciary funds and blended component units. Separate statements for each fund
category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial
statements is on major governmental and enterprise funds, with each displayed in a separate column.
All remaining governmental funds are aggregated and reported as nonmajor funds.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 51
The County reports the following major fund types:
General Fund - The General Fund is the County’s primary operating fund, and it is used to
account for all revenue sources and expenditures which are not accounted for in other funds.
Enterprise Fund - The Fairfax County Integrated Sewer System (Sewer System) is the only
enterprise fund of the County. This fund is used to account for the financing, construction,
and operations of the countywide sewer system.
The County reports the following nonmajor governmental fund types:
Special Revenue Funds - The special revenue funds are used to account for the proceeds of
specific revenue sources (other than debt service and major capital projects) that are legally
restricted or committed to expenditure for specified purposes.
Debt Service Funds - The debt service funds are used to account for the accumulation of
resources for, and the payment of, the general obligation debt service of the County and for
the debt service of the lease revenue bonds and special assessment debt. This includes the
general obligation debt the County has issued to fund Public Schools capital projects.
Capital Projects Funds - The capital projects funds are used to account for financial resources
used for all general construction projects other than enterprise fund construction.
The County reports the following additional fund types:
Internal Service Funds - These funds are proprietary funds used to account for the provision
of general liability, malpractice, and workers’ compensation insurance, health benefits for
employees and retirees, vehicle services, document services, and technology infrastructure
support that are provided to County departments on a cost reimbursement basis.
Pension and Other Postemployment Benefits (OPEB) Trust funds - These are fiduciary funds
used to account for the assets held in trust by the County for the employees and beneficiaries
of its defined benefit pension and OPEB plans – the Employees’ Retirement System, the
Police Officers Retirement System, the Uniformed Retirement System, and the Other
Postemployment Benefits Trust Fund.
Custodial Funds - These are fiduciary funds used to account for monies received, held, and
disbursed on behalf of developers, welfare recipients, the Commonwealth of Virginia, the
recipients of certain bond proceeds, and certain other local governments.
3. Measurement Focus and Basis of Accounting
Government-wide, Proprietary, and Fiduciary Fund Statements
The government-wide, proprietary, trust, and custodial fund financial statements are reported using
the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned, and expenses are recorded at the time liabilities are incurred, regardless of
when the related cash flows take place. Non-exchange transactions, in which the County gives (or
receives) value without directly receiving (or giving) equal value in exchange, include property taxes,
grants, and entitlements. On an accrual basis, revenue from property taxes is recognized in the fiscal
year for which the taxes are levied. Revenue from grants and entitlements is recognized in the fiscal
year in which all eligibility requirements have been satisfied. For the trust funds, consisting of
employee retirement and OPEB plans, member and employer contributions as applicable are
BASIC FINANCIAL STATEMENTS
52 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
recognized in the period in which the contributions are due. Benefits and refunds are recognized
when due and payable in accordance with the terms of each plan.
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. For the Sewer System,
principal operating revenues include sales to existing customers for continuing sewer service.
Operating expenses 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. Also, unbilled Sewer System receivables, net of an allowance for
uncollectible accounts, are recorded at year end to the extent they can be estimated.
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 government’s Sewer
System and various other functions of the government; elimination of these charges would distort the
direct costs and program revenues reported for the various functions concerned.
Governmental Fund Financial Statements
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Under this method, revenues are recognized when measurable
and available. Revenue from the use of money and property and from intergovernmental
reimbursement grants is recorded as earned. Other revenues are considered available to be used to
pay liabilities of the current period if they are collectible within the current period or within 45 days
thereafter. The primary revenues susceptible to accrual include property, business license, and other
local taxes and intergovernmental revenues. In applying the susceptible to accrual concept to
intergovernmental revenues, the legal and contractual requirements of the individual programs are
used as guidance. Expenditures are recorded when the related fund liability is incurred, except that
principal and interest on general long-term debt and certain other general long-term obligations, such
as compensated absences and landfill closure and postclosure care costs, are recognized only to the
extent they have matured. General capital asset acquisitions are reported as capital outlays in
governmental funds. The issuance of general long-term debt and acquisitions under capital leases are
reported as other financing sources. The effect of interfund activity has not been eliminated from the
governmental fund financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 53
4. Pooled Cash and Temporary Investments
The County maintains cash and temporary investments for all funds and component units in a single
pooled account, except for certain cash and investments required to be maintained with fiscal agents
or in separate pools or accounts in order to comply with the provisions of bond indentures. As of
June 30, 2021, the pooled cash and temporary investments have been allocated between the County
and the respective component units based upon their respective ownership percentages. Temporary
investments consist of money market investments
that have a remaining maturity at the time of
purchase of one year or less and are reported at
amortized cost, which approximates fair value.
Interest earned, less an administrative charge, is
allocated generally to the respective funds and
component units based on each fund’s or unit’s
equity in the pooled account. In accordance with
the County’s legally adopted operating budget,
interest earned by certain funds is assigned
directly to the General Fund. For the year ended
June 30, 2021, interest earned by these funds and
assigned directly to the County’s General Fund is
as shown on the right.
5. Cash and Cash Equivalents
For purposes of the statements of cash flows, the amounts reported as cash and cash equivalents for
the proprietary fund types represent amounts maintained in the reporting entity’s investment pool, as
they are considered to be demand deposits for the purpose of complying with GASB Statement No. 9,
“Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities
that use Proprietary Fund Accounting.”
6. Investments
Money market investments that have a remaining maturity at the time of purchase of one year or less
are reported at amortized cost, which approximates fair value. Other investments are reported at fair
value or net asset value as required by GAAP. Securities traded on a national or international
exchange are valued at the last reported sales price at current exchange rates. Asset-backed securities
are valued on the basis of future principal and interest payments and are discounted at prevailing
interest rates for similar investments. Investment ownership is recorded as of the trade date.
Transactions are finalized and money movement occurs on the settlement date. Investments are held
as pooled assets and not individually attributed to funds. For presentation purposes, these have been
allocated proportionally between the County General Fund and Nonmajor Governmental Funds. For
the retirement system, cash received as collateral on securities lending transactions and investments
made with such cash are reported as assets and as related liabilities for collateral received.
7. Investments in Derivatives
The County Retirement Systems (the Systems), which include the Employees’ (ERS), Police Officers
(PORS), and Uniformed (URS) Retirement Systems, as well as the Educational Retirement System
(ERFC) of the Public Schools component unit, invest in derivatives as permitted by the Code of
Virginia and in accordance with policies set by their respective Board of Trustees. Derivative
instruments are financial contracts with valuations dependent on the values of one or more underlying
Primary Government
Nonmajor Governmental Funds 1,927,084$
Internal Service Funds 214,169
C ustodial Funds 1,426
Total primary government 2,142,679
Component Units
Public Schools 1,389,212
FC RHA 10,319
Park Authority 38,813
Total component units 1,438,344
Total reporting entity 3,581,023$
BASIC FINANCIAL STATEMENTS
54 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
assets, reference rates or financial indices. Detailed information on derivative investments is found in
Note B.
8. Inventories and Prepaid Items
For inventories and prepaid items the consumption method of accounting is used. Under this method,
inventories are expensed as they are consumed as operating supplies and spare parts in the period to
which they apply. Inventories are valued and carried on an average unit cost basis. Prepaid items
represent non-inventory transactions that do not qualify for expense or expenditure recognition, but
the cash flow occurred as of the end of the fiscal year but prior to meeting the requirements for
liability recognition.
9. Restricted Assets
Restricted assets are liquid assets which have third-party limitations on their use. When both
restricted and unrestricted resources are available for use, it is the government’s policy to use
restricted resources first, then unrestricted resources as they are needed.
Unspent amounts from the issuance of general obligation bonds are reported as restricted assets in the
County’s capital projects funds. The County also holds deposits under the terms of performance
agreements. The County may require a developer to enter into these agreements in order to ensure
that certain structures and improvements are completed according to approved site plans. The
deposits are released to the developer when the terms of the agreement have been satisfied. If the
terms of the agreement are not satisfied, the County uses the deposits to correct or complete the
project as necessary. The amount of the deposits held is reported as restricted assets in the General
Fund.
In accordance with the provisions of the 1985 General Bond Resolution as modified through July
2009, certain assets of the Sewer System are restricted for specific future uses, such as repayment of
debt obligations, payments on construction projects, extensions and improvements, or the purchase of
additional capacity at certain wastewater treatment facilities for the benefit of the County. As of June
30, 2021, the Sewer System has cash and investments that are restricted for the following uses:
Unspent bond proceeds 232,689,428$
Long-term debt service requirements 35,847,154
C urrent debt service requirements 17,941,505
Total restricted assets 286,478,087$
Restricted Assets of the Sewer System
In accordance with requirements of the U. S. Department of Housing and Urban Development and the
Virginia Housing Development Authority, the FCRHA is required to maintain certain restricted
deposits and funded reserves for repairs and replacements.
The Park Authority and Public School System have restricted assets representing the amount of the
debt service reserve requirement pertaining to unspent amounts from general obligation bonds issued
by the County.
10. Capital Assets
Depreciable capital assets, including buildings, improvements, equipment, library collections,
purchased capacity, and infrastructure, that individually cost $5,000 or more and software with a cost
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 55
of $100,000 or more, with useful lives greater than one year, and non-depreciable assets including
land and permanent right-of-way easements which have no threshold, are reported in the proprietary
funds and applicable governmental or business-type activities columns in the government-wide
financial statements. The County has capitalized general infrastructure assets, including solid waste
disposal facilities, storm water management facilities, public drainage systems, mass transportation
facilities, commercial revitalization improvements, and public trails and walkways that were acquired
or substantially improved subsequent to July 1, 1980. The County does not capitalize roads and
bridges as these belong to the Commonwealth of Virginia.
Purchased capacity consists of payments made by the Sewer System under intermunicipal agreements
with the District of Columbia Water and Sewer Authority (Blue Plains), UOSA, Alexandria
Sanitation Authority (ASA), Arlington County, Loudoun
Water, and Prince William County Service Authority
(PWSA) for the Sewer System’s allocated share of
improvements to certain specified treatment facilities owned
and operated by these jurisdictions.
Purchased capital assets are stated at historical cost or
estimated historical cost. Donated capital assets are recorded
at their estimated acquisition value as of the date of donation.
Capital assets are depreciated/amortized over their estimated
useful lives using the straight-line method. The estimated
useful lives are shown in the table on the right.
No depreciation is taken in the year of acquisition for library collections; depreciation/amortization on
other capital assets commences when the assets are purchased or are substantially complete and ready
for use. For constructed assets, all associated costs necessary to bring such assets to the condition and
location necessary for their intended use are initially capitalized as construction in progress and are
transferred to buildings, improvements, and equipment when the assets are substantially complete and
ready for use.
11. Compensated Absences
All reporting entity employees earn annual leave based on a prescribed formula which allows
employees with less than ten years of service to accumulate a maximum of 240 hours and employees
with ten years or more of service to accumulate a maximum of 320 hours of annual leave as of the
end of each year. In addition, employees, except for Public Schools employees, may accrue
compensatory leave for hours worked in excess of their scheduled hours. Compensatory leave in
excess of 240 hours at the end of the calendar year is forfeited.
The current pay rate is used to calculate compensated absences accruals at June 30. The entire
liability for compensated absences is reported in the government-wide and proprietary fund
statements; whereas, only the matured portion resulting from employee resignations and retirements
is reported in the governmental fund statements.
12. Pensions and OPEB Plans
The reporting entity administers multiple public employee retirement systems and OPEB plans. The
net pension and OPEB liabilities and associated deferred outflows of resources and deferred inflows
of resources are reported with a one year lag when compared with the fiduciary net position as
reported by the retirement systems and OPEB plans. Employer contributions to the plan during the
current fiscal year are reflected as a deferred outflow of resources which will impact the pension
expense of the subsequent year. Benefits and refunds are recognized when due and payable in
C apital Assets Useful Lives
Infrastructure 5 - 99 years
Buildings 15 - 50 years
Purchased capacity 30 - 99 years
Improvements 5 - 70 years
Vehicles 5 - 20 years
Equipment 5 - 20 years
Library collections 5 years
Software 5 - 15 years
BASIC FINANCIAL STATEMENTS
56 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
accordance with the terms of each plan. Detailed information about the individual retirement systems
and their respective pension plans is found in Note G. Information regarding the OPEB plans is
found in Note H.
13. Net Position
Net position is comprised of three categories: Net investment in capital assets; Restricted net
position; and Unrestricted net position. The first category of net position consists of capital assets,
net of accumulated depreciation, reduced by the outstanding balances of debt that is attributable to
these capital assets. Restricted net position is restricted assets reduced by liabilities and deferred
inflows of resources related to those assets. As of June 30, 2021, the primary government had $373.6
million restricted net position, of which $350.1 million was restricted by enabling legislation. Net
position which is neither restricted nor related to net investment in capital assets, is reported as
unrestricted net position.
The County issues debt to finance the construction of school facilities for the Public Schools and park
facilities for the Park Authority component units because Public Schools does not have borrowing or
taxing authority and the Park Authority does not have taxing authority. The County reports this debt,
whereas the Public Schools and Park Authority report the related capital assets and unspent bond
proceeds. As a result, in the Statement of Net Position (Exhibit A), the debt reduces unrestricted net
position for the primary government, while the capital assets are reported in net investment in capital
assets and the unspent bond proceeds are reported in restricted net position for Public Schools and the
Park Authority.
Because this debt is related to capital assets and restricted assets of the reporting entity as a whole, the
debt amount of $1,782.0 million should be reclassified as shown below to present the total reporting
entity column of Exhibit A. Reclassification as presented on Exhibit A consumes restricted in the
amount of $101.9 million for capital projects with the balance of $1,782.0 million to unrestricted.
Net Position
(summarized)
Primary
Government
C omponent
Units
Public
Schools
Facilities
Park
Authority
Facilities
Total
Reclassification of
Debt Issued
Total
Reporting
Entity
Net investment in capital
assets 3,555,615,711$ 3,304,655,268 (1,507,855,715) (172,281,763) (1,680,137,478) 5,180,133,501
Restricted 373,623,191 188,024,791 (86,842,293) (15,063,527) (101,905,820) 459,742,162
Unrestricted (3,044,467,322) (3,336,858,422) 1,594,698,008 187,345,290 1,782,043,298 (4,599,282,446)
Net position 884,771,580$ 155,821,637 - - - 1,040,593,217
Reclassification
of Debt Issued for:
14. Fund Balance Classification
The Board of Supervisors, as the highest level of authority within the County, establishes the
commitment of fund balance to purposes through the approval of the annual budget plan by
resolution, in conjunction with the resolutions associated with the establishment of fee and tax rates,
and acceptance or appropriation of funds. All subsequent changes to the budget plan to add, reduce,
or redirect resources to other purposes are also accomplished by board resolution. As a result, all
unrestricted amounts directed toward a purpose are shown as committed. Balances shown as assigned
in the general fund represent encumbrances which would otherwise be unassigned.
The County considers restricted balances to be expended first in cases where both restricted and
unrestricted amounts are available. When utilizing unrestricted balances, committed balances are
applied first, followed by assigned then unassigned balances.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 57
15. Encumbrances
The County uses encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of funds are recorded to reserve that portion of the applicable
appropriation. Encumbrances represent the estimated amount of expenditures ultimately to result if
unperformed contracts and open purchase orders are completed. Encumbrances for the capital
projects funds do not lapse until the completion of the projects and are included within the highest
level of fund balance constraint in accordance with the order of expenditure as noted in note A-13.
Encumbrances in the general fund are generally reported as assigned fund balance, but balances
included in other funds within the general fund group are committed. Funding for all other
encumbrances lapses at year end and requires reappropriation by the Board. Funds with significant
encumbrance balances are as follows:
Encumbrance
Balance
Primary Government
General Fund
Public safety, courts, and judicial 13,699,913$
General public works 5,350,833
Social services, health and welfare 9,036,907
Housing and community development 3,343,327
Parks, recreation, and cultural 304,364
Other purposes 18,827,317
Total General Fund 50,562,661
Capital Projects Funds
C apital Project 169,090,715$
16. Stabilization and Managed Reserve
In 1983, through resolution the Board of Supervisors established a policy to maintain a managed
reserve in the general fund at a level sufficient for temporary financing of unforeseen emergency
needs or to permit orderly adjustment to changes resulting from the termination of revenue sources
through actions of other governmental bodies. The reserve is maintained at a level of not less than
2.0 percent of total general fund disbursements. The balance is adjusted as a part of the quarterly
budget review process. The Board increased the target to 4.0 percent in April of 2015.
In 1999, the Board of Supervisors passed a resolution establishing the revenue stabilization fund. The
revenue stabilization fund is included in the general fund for reporting purposes. The purpose of the
revenue stabilization fund is to provide a mechanism for maintaining a balanced budget without
resorting to tax increases and expenditure reductions that aggravate the stresses imposed by the
cyclical nature of the economy. Three specific criteria must be met to draw from this fund. Projected
revenues must reflect a decrease greater than 1.5 percent from the current year estimate, withdrawals
must not exceed one-half of the fund balance in any fiscal year, and withdrawals must be used in
conjunction with spending cuts or other measures.
BASIC FINANCIAL STATEMENTS
58 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
17. Recovered Costs
Reimbursements from another government, organization, or private company for utilities, tuition fees,
vehicle insurance, and services rendered or provided to citizens are recorded as recovered costs in the
fund financial statements.
18. Intermunicipal Agreements
The Sewer System has entered into several intermunicipal agreements for the purpose of sharing
sewage flow and treatment facility costs (see Note K). The payments made to reimburse operating
costs and debt service requirements are recorded as expenses in the year due. Payments made to fund
the Sewer System’s portion of facility expansion and upgrade costs are capitalized as purchased
capacity (see Note F). The Sewer System amortizes these costs over the period in which benefits are
expected to be derived, which is between 30 and 99 years, depending on time of installation.
The City of Fairfax (the City) makes payments to the County for the City’s share of certain
governmental services and debt service costs. Payments for governmental services such as court, jail,
custody, health, library, and County agent services are recorded as revenue in the General Fund. Debt
service payments represent the City’s share of principal and interest and are recorded as revenue in
the County Debt Service Fund. In addition, the City pays the County a share of the local portion of
all public assistance payments and services including related administrative costs, which is recorded
as revenue in the General Fund. The City of Falls Church makes payments to the County for the full
cost of the local portion of public assistance payments (including allocated administrative costs) and
for the use of special County health facilities by Falls Church residents. These payments are recorded
as revenue in the General Fund.
The County and the cities of Fairfax and Falls Church comprise the Fairfax-Falls Church Community
Services Board (CSB), established under State mandate in 1969, to provide community-based
supports for individuals and families of the three jurisdictions that are affected by developmental
delay, developmental disabilities, serious emotional disturbance, mental illness and/or substance use
disorders. The CSB uses the County as its fiscal agent. The operations of the CSB, including
payments received from these cities for services performed by the County, are reported in a special
revenue fund.
19. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual
results could differ from those estimates. The differences are reflected in the period known unless
deemed significant by management.
B. DEPOSITS AND INVESTMENTS
1. Deposit and Investment Policies
The reporting entity maintains an investment policy, the overall objectives of which are the
preservation of capital and the protection of investment principal; maintenance of sufficient liquidity
to meet operating requirements; conformance with federal, state, and other legal requirements;
diversification to avoid incurring unreasonable risks regarding specific security types or individual
financial institutions; and attainment of a market rate of return. Oversight of investment activity is
the responsibility of the Investment Committee, which is comprised of the chief financial officer and
certain key management and investment staff.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 59
It is the reporting entity’s policy to pool for investing purposes all available funds of the County and
its component units that aren’t otherwise required to be kept separate. The investment policy,
therefore, applies to the activities of the reporting entity with regard to investing the financial assets
of its pooled investment funds.
The primary government is a participant in the Virginia Investment Pool Trust Fund (VIP Trust). VIP
Trust is a Section 115 governmental trust fund created under the Joint Exercise of Powers statute of
the Commonwealth of Virginia to provide political subdivisions with an investment vehicle to pool
surplus funds and to invest such funds into one or more investment portfolios under the direction and
daily supervision of a professional fund manager. The VIP Trust is governed by a Board of Trustees.
The primary government is a participant in the Virginia State Non-Arbitrage Program (SNAP),
sponsored by the Virginia Treasury Board. The SNAP Program provides comprehensive investment
management, accounting and arbitrage calculation services for the proceeds of tax-exempt financings
of Virginia governments. The Treasury Board has hired a program/investment manager, rebate
calculation agent, central depository, custodian bank, and legal counsel to manage the program and
provide services to investors.
The primary government’s pension trust funds have adopted investment policies to provide a well-
managed investment program to meet the long-term goals of the pension trust funds, provide a high
degree of diversification, maintain appropriate asset coverage of fund liabilities, and also optimize
investment return without introducing higher volatility to contribution levels. Investment decisions
for the funds’ assets are made by the Boards of Trustees or investment managers selected by the
Boards of Trustees. The Boards of Trustees believe that risks can be managed, but not eliminated, by
establishing constraints on the investment portfolio and by properly monitoring the investment
markets, the pension trust funds’ asset allocation, and investment managers. Furthermore, investment
portfolios have specific benchmarks and investment guidelines.
The component unit’s pension trust fund’s investment decisions are made by its Board of Trustees or
the investment advisors selected by the Board of Trustees. The Board of Trustees manages the fund’s
investments under the umbrella of an approved set of investment objectives, guidelines, and
performance standards. The objectives are formulated in response to the fund’s anticipated financial
needs, risk tolerance, and the need to document and communicate objectives, guidelines, and
standards to the fund’s investment managers. The Board of Trustees may grant exceptions to the
investment guidelines based on written requests and appropriate justification. All exceptions that are
approved are included in an appendix to the written guidelines.
The primary government’s OPEB trust fund and its component unit’s OPEB trust fund are
participants in the Virginia Pooled OPEB Trust. Funds of participating jurisdictions are pooled and
are invested in the name of the Virginia Pooled OPEB Trust, sponsored by the Virginia Municipal
League and the Virginia Association of Counties (VML/VACo). The primary government’s and
component unit’s respective shares in this pool are reported on the face of the corresponding OPEB
trust fund statements as found in the other supplementary information section of the ACFR. The
Board of Trustees of the Virginia Pooled OPEB Trust has adopted an investment policy to achieve a
compound annualized total rate of return over a market cycle, including current income and capital
appreciation, in excess of 5 percent after inflation, in a manner consistent with prudent risk-taking.
Investment decisions for the funds’ assets are made by the Board of Trustees. The Board of Trustees
establishes investment objectives, risk tolerance and asset allocation policies in light of the
investment policy, market and economic conditions, and generally prevailing prudent investment
practices. The Board of Trustees also monitors the investments to ensure adherence to the adopted
policies and guidelines. In addition, the Trustees review, monitor, and evaluate the performance of
the investments and its investment advisors in light of available investment opportunities, market
conditions, and publicly available indices for the generally accepted evaluation and measurement of
BASIC FINANCIAL STATEMENTS
60 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
such performance. Specific investment information for the Virginia Pooled OPEB Trust can be
obtained by writing to VML/VACo Finance Program, 8 East Canal Street, Suite 100, Richmond,
Virginia 23219.
The Code of Virginia (Code) authorizes the reporting entity to purchase the following types of
investments:
• Commercial paper
• U.S. Treasury and agency securities
• U.S. Treasury strips
• Certificates of deposits and bank notes
• Insured Deposits
• Demand Deposit Accounts
• Money market funds
• Bankers acceptances
• Repurchase agreements
• Medium term corporate notes
• Local government investment pool
• Asset-backed securities
• Hedged debt obligations of sovereign governments
• Securities lending programs
• Obligations of the Asian Development Bank
• Obligations of the African Development Bank
• Obligations of the International Bank for Reconstruction and Development
• Obligations of the Commonwealth of Virginia and its instrumentalities
• Obligations of counties, cities, towns, and other public bodies located within the Commonwealth of Virginia
• Obligations of state and local government units located within other states
• Savings accounts or time deposits in any bank or savings institution within the Commonwealth that complies with the Code
• Qualified investment pools
However, the investment policy precludes the investment of pooled funds in derivative securities,
reverse repurchase agreements, security lending programs, asset-backed securities, hedged debt,
obligations of sovereign governments, obligations of the Commonwealth of Virginia and its
instrumentalities, obligations of counties, cities, towns, and other public bodies located within the
Commonwealth of Virginia and obligations of state and local government units located within other
states.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 61
The Code also authorizes the reporting entity to purchase other investments for its pension trust funds
and OPEB trust funds, including common and preferred stocks and corporate bonds that meet the
standard of judgment and care set forth in the Code. The pension trust funds’ Boards of Trustees’
investment policies permit these funds to lend their securities to broker-dealers and other entities
(borrowers) for collateral that will be returned for the same securities in the future.
2. Fair Value Measurement
The reporting entity’s pooled investments are reported at fair value, except for money market funds
and investments that have a remaining maturity at the time of purchase of one year or less. These are
carried at amortized cost, which approximates fair value. The fair value of all investments is
determined annually and is based on current market prices.
The reporting entity categorizes its fair value measurements within the fair value hierarchy
established by GAAP. The hierarchy is based on the source and type of information used to
determine the fair value of the asset. The hierarchy gives the highest level to unadjusted quoted
prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest level
to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are
described as follows:
Level 1 Information is unadjusted quoted prices for identical instruments in active markets that the
County has the ability to access.
Level 2 Information is quoted prices for similar assets in active markets, quoted prices for identical or
similar assets in inactive markets, quoted prices that are observable, either directly or indirectly from
a source other than an active market.
Level 3 Includes unobservable information to arrive at the valuation.
The Primary Government has the following investments measured at fair value as of June 30, 2021:
The income from pooled investments held by the Primary Government is allocated at month-end to
the individual funds based on the fund’s average daily cash balance in relation to total equity in
pooled cash.
Securities and equities held by the County and component pension systems classified in Level 1 of
the fair value hierarchy are valued using prices quoted in active markets for those securities.
Securities in Level 2 are valued using bid evaluation which may include market quotations, yields,
maturity call features and ratings. Matrix pricing is used to value securities based on the securities
relationship to benchmark quoted prices. Level 3 securities use proprietary information or single
source pricing. Additional information regarding the holdings of the individual retirement systems is
Pooled investments
Quoted Prices in
Active markets
for Identical
Assets
Significant
Unobservable
Inputs
Level 1 Level 3
Investments by Fair Value Level 6/30/2021
Primary
Government Component Unit
C ash & C ash Equivalents:
Negotiable C ertificates of Deposit 890,000,000$ - 693,187,369 196,812,631 -
C ommercial Paper 654,416,193 - 509,700,044 144,716,149 -
Fixed Income Securities:
US Treasury and Agencies 554,051,267 431,529,596 122,521,671
C orporate Notes 264,814,382 - 206,253,916 58,560,466 -
Total investment by Fair Value Level 2,363,281,842$ - 1,840,670,925 522,610,917 -
Observable Inputs other than
Quoted Prices
Level 2
BASIC FINANCIAL STATEMENTS
62 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
available in their separately issued ACFRs. Information on how these may be viewed can be found in
Note G.
Pension holdings reported at fair value and net asset value are presented below:
Primary Government - Pension Trust Funds:
Quoted Prices in
Active markets
for Identical
Assets
Significant Other
Observable Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 6/30/2021 Level 1 Level 2 Level 3
Asset-backed securities 266,604,457$ - 82,805,696 183,798,761
C onvertible or exchangeable securities 12,976,183 - 12,976,183 -
C onvertible securities 435,463 435,463 - -
C orporate and other bonds 506,250,162 22,350,383 380,571,136 103,328,643
Equity 1,713,952,913 1,630,511,756 (495,730) 83,936,887
Futures contracts 22,256,521 22,256,521 - -
International bonds 30,216,011 - 30,216,011 -
Natural resources 4,425,275 - - 4,425,275
Preferred securities 8,307,337 4,131,110 4,148,581 27,646
Real estate 32,104,566 32,104,566 - -
US government obligations 358,422,272 - 358,422,272 -
Total investment by Fair Value Level 2,955,951,160$ 1,711,789,799 868,644,149 375,517,212
Investments measured at the net asset value (NAV)
Unfunded
Commitments
Redemption
Frequency
Redemption
Notice Period
Absolute return $1,173,952,307 - Daily, Monthly, Quarterly 2-90 days
Global equity 1,335,948,774 454,641,287
None, Daily, Monthly,
Quarterly 0 - 90 days, N/A
Global fixed income 1,744,074,123 388,369,349
None, Daily, Monthly,
Quarterly, Semi-Annually 0 - 90 days, N/A
Global multi-asset 875,749,449 - Daily, Monthly, Quarterly 1-90 days
Global real assets 548,869,452 179,269,575 None, Daily, Quarterly 0-60 days, N/A
Total investments measured at the NAV 5,678,594,105 1,022,280,211
Investments Measured at Amortized Cost
Short Term 453,469,787
Total investments 9,088,015,052$
Fair Value Measurements Using
Absolute Return: This type includes relative value hedge funds which implement long and short
relative value strategies to capture structural returns across multiple asset classes including equity
sectors, equity indices, fixed income, currency and commodities. The funds classified as absolute
return also include the following:
Global Macro: This type includes hedge funds that invest long/short across fixed income, currency,
equity and commodity markets. The process is equally driven by analysis of the macro environment,
flows of capital, the expected reaction to changes in interest rates, trend following and other drivers.
This type also includes Commodity Trading Advisor (CTA) that analyzes market prices to determine
trends then uses tactical asset allocation to capture and ride market trends. The fund is a diversified
portfolio with exposure to currencies, commodities, bonds and short interest rates, and equity indices
at various times. These exposures are typically achieved through the use of derivatives which allows
quick response because of the high liquidly in the derivative markets.
Equity long/short hedge funds: This type includes hedge funds that invest both long and short
primarily in the U.S. common stock market. Each of the funds have different strategies. Each of the
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 63
hedge fund strategies requires a longer hold period to realize value so each fund has quarterly
liquidity and forty five day notice period for redemptions.
Multi-strategy: This type includes an event-driven multi-strategy fund that invests in distressed debt,
risk arbitrage, event equities, convertible arbitrage, and volatility trades. This type includes hedge
funds that use quantitative and qualitative tools to optimize return per unit of volatility.
Event Driven: This type includes investment in a hedge fund that focuses on global long/short credit
and event driven positions, investing across the capital structure.
Global Equity: This type includes domestic equity fund that uses derivative instruments to replace
long equity exposures, and international equity funds providing traditional long-only international
equity exposure. This type also includes private equity stakes in investment management firms and
thus a share of the firm’s revenues and capital appreciation.
U.S. Equities: This type includes a private hedge fund. A bundled portable alpha mandate which
uses futures on the S&P 500 Index and ports it to a fundamental global macro/fixed income fund.
The fund has exposure to interest rates, FX, equity indices and commodities. However, the majority
of its exposure is generally to interest rates. Another type of hedge fund is a U.S. small cap deep
value long/short equity fund. This type also includes a hedge fund that is based on the fundamental
concepts of value and momentum investing. The fund applies both concepts through the use of
numerous proprietary indicators across many sectors, while generally giving more weight to value
than momentum. This is a long/short strategy that maintains a net 100 percent invested position by
investing 130 percent of portfolio assets in long positions and 30 percent in short positions.
International Equities: This type includes an international small cap fund that uses a quantitative
approach. In addition to traditional value measures such as price/earnings and price/book ratios, the
fund also considers growth-related factors, such as price momentum and trends in analysts’ earnings
estimates, to target undervalued companies that have strong prospects for future outperformance.
This type also includes emerging markets equity fund that uses both quantitative and qualitative
analysis to build a diversified portfolio.
Private Equity: This type includes private equity stakes in investment management firms and thus a
share of the firm’s revenues and capital appreciation. They are invested in management buy-in, buy-
outs, venture capital, growth and expansion capital, mezzanine, distressed and venture debt, special
situation, recapitalization and other private equity funds.
Global Fixed Income: This includes fixed income, direct lending, and opportunistic types of
securities. Fixed income consists of funds providing leveraged exposure to US and international
government issued inflation-linked bonds, and emerging market debt fund. This also includes funds
that invests in Mortgage Backed, Asset Backed and other distressed securities believed to be priced
below the fundamental credit risk inherent in those securities. Direct Lending includes private debt
funds conducting middle market corporate and commercial mortgage direct lending with negotiated
senior secured loans to borrowers that are too small to attract the attention of conventional banks and
lenders. Loan payments are also distributed on a monthly or quarterly basis. The loans are held at
book value unless a payment default has occurred at which time a third-party appraisal value is
determined. Opportunistic credit includes funds investing in public and private debt, equity and real
estate as opportunities present themselves. These investments cannot be redeemed. The distributions
are received through the liquidation of underlying assets of the funds over a period of years as per the
terms of the fund.
BASIC FINANCIAL STATEMENTS
64 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Global Multi-Asset: This type includes funds that invest across multiple asset classes using a risk
balance approach in their asset allocation with the intent to balance risk across all combinations of
Rising and Falling Growth and Inflation. The main goal is to construct a portfolio that achieves the
best risk adjusted return at a given expected level of volatility which varies by fund. This is achieved
through the use of derivatives and liquid long positions across multiple asset classes.
Global Real Assets: This type includes fund that owns and operates a fleet of commercial bulk
container and tanker vessels, fund that purchases interests in other private real estate funds on the
secondary market, and fund that owns and operates the real estate, infrastructure and inventory of a
cattle feeding operation. This type also includes funds that focuses on publicly traded REITs, listed
infrastructures, commodities, MLPs, natural resource equities, precious metals, TIPS, and floating
rate/bank loans. The strategy will set long term strategic allocations to those asset classes with broad
ranges. The portfolio will be tactically reviewed on a quarterly basis. The other funds classified
under this type include the following:
Inflation Hedges: This type includes funds that invest in inflation sensitive asset classes to help
hedge against inflation risks in the broader portfolio. One of the funds uses a diversified commodity
portfolio to lower commodity volatility more than equities, provide an inflation hedge, and perform
better in most economic environments, except for recessions. The portfolio is invested in inflation
sensitive assets and inflation linked assets. Exposure to the inflation sensitive assets is achieved
through global equity and derivative positions in precious metals, mining, agriculture, energy, and
other commodities and commodity dependent equities. Global inflation linked bonds such as TIPS
and emerging market inflation linked bonds provide exposure to the assets directly linked to inflation.
Real Estate funds: One fund in this type is primarily a core portfolio of U.S. equity real estate with a
goal to provide good returns while limiting downside risk through property type, geographic, and
economic diversification with moderate leverage. This type also includes distressed real estate fund-
of-funds that invest in local real estate managers that purchase distresses properties and renovate
them. Distributions in this fund are received through the liquidation of the underlying properties over
five to ten years, and rental income is received as a current yield from the underlying funds.
Component pension holdings reporting at fair value and net asset value are presented on the following
page:
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 65
Component Unit - Pension Trust Funds:
Quoted Prices
in Active
markets for
Identical
Assets
Significant Other
Observable Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 6/30/2021 Level 1 Level 2 Level 3
Short-term securities 82,434,178$ - 82,434,178 -
Asset and mortgage backed securities 131,235,280 - 131,235,280 -
C orporate bonds 296,155,653 - 290,200,138 5,955,515
C onvertible securities 7,885,605 433,004 7,452,601 -
International bonds 48,744,879 - 48,282,977 461,902
Municipal bonds 629,074 - 629,074 -
US government obligations 134,299,276 134,299,276 - -
Basic industries 114,111,656 114,111,656 - -
C onsumer services 211,957,163 211,957,163 - -
Financial industries 87,022,348 87,022,348 - -
Preferred securities 2,847,981 2,847,981 - -
REITS 15,429,647 15,429,647 - -
Technology 133,056,927 133,056,927 - -
Utilities 5,837,841 5,837,841 - -
Total investment by Fair Value Level 1,271,647,508$ 704,995,843 560,234,248 6,417,417
Investments measured at the net asset value (NAV)
Unfunded
Commitments
Redemption
Frequency
Redemption
Notice Period
C ommingled large cap equity funds 520,490,767$ - Daily None
C ommingled emerging markets equity funds 209,646,091 - Daily 3 days
C ommingled global equity fund 179,682,927 - Daily None
C ommingled global fixed income funds 117,469,670 - Daily None
C ommingled emerging markets debt funds 94,630,238 - Monthly 30 days
Private markets 238,898,086 153,707,291 Not eligible N/A
C ommingled Multi asset class solutions 306,184,789 - Monthly 5 days
C ommingled Hedge funds 187,556,946 - Monthly 30 days
C ommingled real estate equity funds 138,530,606 - Daily, quarterly 1 to 90 days
Private real estate fund 17,601,518 52,678,490 Not eligible N/A
Total investments measured at the NAV 2,010,691,638 206,385,781
Total investments measured at Fair Value 3,282,339,146$
Fair Value Measurements Using
Commingled Large Cap Equity Fund: The objective of this index fund is to invest in securities and
collective funds that together are designed to track the performance of the Russell 1000®.
Commingled Emerging Markets Equity Fund: The fund invests in common stocks and other forms of
equity investments issued by emerging market companies of all sizes to obtain long-term capital
appreciation.
Commingled Global Equity Funds: The fund in this category is an actively managed, multi-
capitalization fund focused on attractively priced companies with strong and/or improving financial
productivity. The fund invests in listed global equity securities located in both developed and
emerging markets.
Commingled Global Fixed Income Funds: The fund seeks to generate strong risk-adjusted returns
from the global bond markets. The strategy focuses on selecting securities with attractive valuations
in countries with stable to improving structural outlooks and growth trajectories.
Commingled Emerging Markets Debt Fund: This fund invests in fixed income securities of emerging
or developing countries to achieve high current income and long-term capital growth.
Private Equity and Debt Partnerships: This type includes investments in limited partnerships, which
generally include the following strategies: buyouts, venture capital, mezzanine, distressed debt,
BASIC FINANCIAL STATEMENTS
66 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
growth equity and special situations. These investments have an approximate life of 10 years and are
considered illiquid. Redemptions are restricted over the life of the partnership. During the life of the
partnerships, distributions are received as underlying partnership investments are realized. As of June
30, 2021, it is probable that all of the investments in this type will be sold at an amount different from
the NAV per share of the plan’s ownership interest in partners’ capital.
Infrastructure - This type invests in assets which provide essential services or facilities to a
community such as schools, hospitals, transportation, distribution, communication, power generation,
water and waste management. These investments can include limited partnerships and commingled
funds and are considered illiquid. The investment seeks to provide long-term risk-adjusted returns, a
stable income stream and inflation protection.
Commingled Multi-Asset Class Solutions Funds: This type of fund typically has an unconstrained,
non-benchmark oriented investment approach with investments across various asset classes. It may
invest in, but is not limited to, equities, fixed income, inflation-linked bonds, currencies and
commodities. The objective is to provide attractive returns in any type of economic environments.
Commingled Real Estate Equity Funds: One of the funds in this category actively manages a core
portfolio of U.S. equity real estate investments to maximize income. The second fund in this category
maximizes total return by investing primarily in global, publicly traded companies whose principal
business is the ownership, management and/or development of income producing and for-sale real
estate properties. The third fund in this category seeks to provide a moderate level of current income
and high residual property appreciation by investing in a balanced mix of stabilized value-added
properties with appreciation potential. The fourth fund in this category invests primarily in U.S. well-
leased retail, warehouse, storage, and residential properties with a focus on income.
Private Real Estate Funds: This fund is a limited partnership that makes secondary investments in
various types of real estate and real estate entities, such as commingled real estate funds, limited
partnerships, joint ventures, real estate operating companies and non-traded REIT vehicles.
Hedge Funds – Opportunistic: This is an alternative type of strategy with a typical return objective of
cash plus a premium. It invests across different asset classes.
Information related to the investments held in the OPEB trust funds of both the County and
Components is discussed in Note H.
3. Interest Rate Risk
The reporting entity’s policy is to minimize the risk that the fair value of securities in its portfolio will
fall due to changes in market interest rates. To achieve this minimization of risk, the reporting entity
structures the pooled investment portfolio so that sufficient securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell securities on the open market
prior to maturity. Pooled investments that are purchased to meet liquidity needs shall have a target
weighted average maturity of ninety days or less. All other pooled funds are invested primarily in
shorter-term securities, with a maximum maturity of five years. The reporting entity’s pooled
investments as of June 30, 2021, are summarized on the following page:
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 67
Investment Type Valuation
Weighted
Average
Maturity
(Days)
Primary Government - Pooled Investments:
Pooled Investments:
U.S. Treasury Securities and Agencies 431,540,226$ 1,451
C ommercial Paper 509,964,422 81
C orporate Notes and Bonds 206,258,997 581
Money Market Funds 248,089,984 1
Negotiable C ertificates of Deposit 693,204,446 158
State of Virginia LGIP 102,123,314 58
Virginia Investment Pool LGIP 179,630,376 47
Total 2,370,811,765$
Portfolio weighted average maturity 384
Component Units - Pooled Investments:
U.S. Treasury Securities and Agencies 122,511,041$ 1,451
C ommercial Paper 144,775,083 81
C orporate Notes 58,555,386 581
Money Market Funds 70,430,890 1
Negotiable C ertificates of Deposit 196,795,554 158
State of Virginia LGIP 28,992,044 58
Virginia Investment Pool LGIP 50,995,719 47
Total 673,055,717$
Portfolio weighted average maturity 384
The primary government’s pension trust funds manage interest rate risk for fixed income accounts by
limiting the credit quality of the securities held as well as the duration of the portfolio against the
duration of the benchmark. The component unit’s pension trust fund’s fixed income managers utilize
the modified duration method to manage interest rate risk. In addition, the fund’s investment policy
states that the average effective duration of each manager’s portfolio should be within 30 percent of
the portfolio’s benchmark duration.
BASIC FINANCIAL STATEMENTS
68 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The investments in debt securities of the pension trust funds of the reporting entity as of June 30,
2021, are summarized as follows:
Interest Rate Risk - Duration Model
Investment Type Valuation
Duration
(Years)
Primary Government - Pension Trust Funds:
U.S. Government securities
Employees' Retirement System 214,000,466$ 15.5
Police Officers Retirement System 78,964,276 13.4
Uniformed Retirement System 65,457,530 9.2
C orporate and other bonds
Employees' Retirement System 378,254,879 2.7
Police Officers Retirement System 82,378,203 4.8
Uniformed Retirement System 113,389,813 3.4
International Bonds
Employees' Retirement System 29,724,867 4.9
Police Officers Retirement System - -
Uniformed Retirement System 491,144 5.8
Asset-backed securities
Employees' Retirement System 117,362,797 4.7
Police Officers Retirement System 43,380,369 6.0
Uniformed Retirement System 105,861,291 4.2
Short-term investments
Employees' Retirement System 205,607,282 -
Police Officers Retirement System 65,667,361 -
Uniformed Retirement System 182,195,144 -
Total 1,682,735,422$
Component Unit - Pension Trust Fund:
Asset and mortgage backed 131,235,280$ 1.0
C onvertible securities 7,885,605 0.2
C orporate bonds 296,155,653 3.5
International bonds 48,744,879 0.6
Municipal bonds 629,074 0.0
Short-term investment funds 82,434,178 -
US government obligations 134,299,276 0.9
Total 701,383,945$
* The underlying assets of the asset-backed securities are
predominantly mortgages.
4. Credit Risk
The reporting entity’s policy is to minimize the risk of loss due to the failure of an issuer or other
counterparty to an investment to fulfill its obligations. The reporting entity pre-qualifies financial
institutions, broker-dealers, intermediaries, and advisers with which the County does business. In
addition, the reporting entity limits its pooled investments to the safest types of securities and
diversifies its pooled investment portfolio so that potential losses on individual securities will be
minimized. Also, new investments shall not be made in securities that are listed on Moody’s
Investors Service, Inc. (Moody’s) Watchlist or Standard & Poor’s, Inc. (S&P) Credit Watch with a
negative short term rating. The policy specifies the following acceptable credit ratings for specific
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 69
types of investments in the pooled portfolio:
• U.S. government agency and GSE instruments should have a rating of least Prime-1 by Moody’s and A-1 by S&P. In those instances when a GSE does not have a rating, a thorough credit and
financial analysis will be conducted by county investment staff.
• Prime quality commercial paper shall be rated by at least two of the following: Moody’s, with a rating
of P-1; S&P, A-1; Fitch Investor’s Services, Inc. (Fitch), F-1; or by Duff and Phelps, Inc., D-1.
• Mutual funds must have a rating of AAA or better by S&P, Moody’s, or another nationally
recognized rating agency.
• Negotiable certificates of deposit must have a rating of at least A-1 by S&P and P-1 by Moody’s if
less than 1 year and a rating of AA by S&P if more than 1 year.
• Banker’s acceptances shall be rated by at least two of the following: Moody’s, with a rating of P-1;
S&P, A-1; Fitch, F-1; or by Duff and Phelps, Inc., D-1.
• Corporate notes must have a rating of at least Aa by Moody’s and a rating of at least AA by S&P.
• Local government investment pool (LGIP) bond fund must have a rating of AAA by S&P, and
AAAm by S&P for VIP Stable NAV Liquidity Pool.
• Supranationals must have a rating of AAA by S&P or Moody’s.
While the overall investment guidelines for the primary government’s pension trust funds do not
specifically address credit risk, investment managers have specific quality limits appropriate for the
type of mandate they are managing and that fit within the total risk tolerance of the fund. The
component unit’s pension trust fund’s investment policy states that the average credit quality of a
fixed income portfolio must be at least A. The policy also permits up to 20 percent of the portfolio to
be invested in Moody’s or S&P’s quality rating below Baa or BBB, respectively. If a security is
downgraded below the minimum rating, the investment manager must notify the Board of Trustees
and an exception to the guidelines must be granted in order for the security to remain in the portfolio.
As of June 30, 2021, investments held by the county pool were rated as follows:
C orporate Notes 7.9% C ommercial
paper 19.5%
Money Market
Funds 1.1%
Demand Deposit
Accounts 2.3%
16.6% Negotiable C D 26.6% LGIP 10.8% C ollateralized C Ds 6.8%
Bond Funds 8.4%
24.5% 46.1% 20.3% 9.1%
** U.S.Treasury and Agencies AA+
* C redit quality ratings are determined using S&P's short-term and long-term ratings, which
approximates the greatest degree of risk as of June 30, 2021.
C redit Quality Rating *
AA A-1 AAA-m Unrated
US Treasury and
Agencies**
BASIC FINANCIAL STATEMENTS
70 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The primary government and component units’ pension trust funds’ credit quality ratings at June 30,
2021, were as follows:
Investment Type AAA AA A BBB BB B Below B Unrated
Primary Government
Pension Trust Funds:
U.S. Government obligations - % 21.3 % - % - % - % - % - % - %
C orporate and other bonds - 0.5 1.3 3.5 6.8 6.3 2.8 12.8
Asset-backed securities 0.2 4.2 0.2 0.2 1.1 0.7 0.8 8.4
Short-term investments - - - - - - - 27.0
International bonds - 0.2 0.1 1.0 0.7 - - (0.1)
Component Units
Pension Trust Fund:
Asset and mortgage-backed securities 3.4 % 11.2 % 4.2 % 3.9 % 0.6 % 0.3 % 2.1 % 1.4 %
C orporate bonds - 1.6 6.4 37.7 10.3 4.6 0.4 0.1
C onvertible securities - - - 0.8 0.2 0.6 - -
International bonds 1.9 0.8 1.4 3.1 2.3 0.6 0.1 -
Municipal bonds - - - 0.1 - - - -
C redit Quality Rating *
* C redit quality ratings are determined using S&P's long-term rating schema, which approximates the greatest degree of risk as
of June 30, 2021.
5. Concentration of Credit Risk
The reporting entity’s investment policy sets the following limits for the types of securities held in its
pooled investment portfolio:
Investment Type
U.S. Treasury securities and agencies 100% maximum
Negotiable certificates of deposit 40% maximum
Banker's acceptances 35% maximum
C ommercial paper 35% maximum
Repurchase agreements 30% maximum
Mutual funds 30% maximum
Virginia investment pool - daily liquidity 30% maximum
C orporate notes 25% maximum
Non-negotiable certificates of deposit 25% maximum
Virginia investment pool - LGIP bond fund 25% maximum
Insured certificates of deposit 15% maximum
Bank demand deposit 10% maximum
Supranationals 10% maximum
Maximum Diversification
In addition, not more than 5 percent of the total pooled funds available for investment at the time of
purchase may be invested in any one issuing or guaranteeing corporation for commercial paper,
corporate notes, and negotiable certificates of deposits. The County shall seek to maintain 5 percent
of the investment portfolio in a combination of mutual funds, demand deposit accounts or open
repurchase agreements to meet liquidity requirements.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 71
While the overall investment guidelines for the primary government’s pension trust funds do not
specifically address concentration of credit risk, investment managers have specific concentration
limits appropriate for the type of mandate they are managing and that fit within the total risk tolerance
of the fund. The pension trust funds do not have investments (other than U.S. Government and U.S.
Government-guaranteed obligations) in any one organization that represents 5 percent or more of net
position available for benefits.
The component unit’s pension trust fund’s policy limits the securities of any one issue to 10 percent at
cost and 15 percent at market of each fixed income portfolio. The policy allows an exception for
government securities and its agencies. As of June 30, 2021, ERFC had three active fixed income
managers. The active manager portfolios had values of $184.8 million, $205.5 million and $270.5
million. The fair value of the largest issue other than the U.S. Government in the portfolios of the
active managers, excluding pooled funds, was only 1.43 percent of that portfolio.
6. Custodial Credit Risk
For deposits, custodial credit risk is the risk that in the event of a failure of a depository financial
institution, the reporting entity may not recover its deposits. In accordance with the Virginia Security
for Public Deposits Act (Act), all of the reporting entity’s deposits are covered by federal depository
insurance or collateralized in accordance with the Act, which provides for the pooling of collateral
pledged by financial institutions with the Treasurer of Virginia to secure public deposits as a class.
No specific collateral can be identified as security for one public depositor, and public depositors are
prohibited from holding collateral in their name as security for deposits. If any member financial
institution fails, the entire collateral pool becomes available to satisfy the claims of governmental
entities. If the value of the pool’s collateral is inadequate to cover a loss, additional amounts are
assessed on a pro rata basis to the members of the pool. The State Treasury Board is responsible for
monitoring compliance with the collateralization and reporting requirements of the Act and for
notifying local governments of compliance by participating financial institutions. A multiple
financial institution collateral pool that provides for additional assessments is similar to depository
insurance, therefore, funds deposited in accordance with the requirements of the Act are considered to
be fully insured.
For investments, custodial credit risk is the risk that, in the event of the failure of a counterparty, the
reporting entity will not be able to recover the value of its investments or collateral securities that are
in the possession of an outside party. Per policy, all of the investments purchased by the reporting
entity are insured or registered or are securities held by the reporting entity or its agent in the
reporting entity’s name.
The Boards of Trustees of the pension trust funds permit the funds to participate in a securities
lending program, which is administered by a custodian. Under this program, certain securities are
loaned to approved broker/dealers who borrow the securities and provide collateral in the form of
cash, U.S. Treasury or government agency securities, letters of credit, and other securities as specified
in the securities lending agreement. The value of the collateral for domestic securities must equal 102
percent of the fair value of the security and 105 percent of the market value of the foreign security.
The custodian monitors the fair value of the collateral on a daily basis. Cash collateral is invested in a
fund which is maintained by the custodian or its affiliate. The pension trust funds did not impose any
restrictions during the period on the amounts of loans security lending agents made on their behalf,
and the agents have agreed to indemnify the pension trust funds by purchasing replacement securities,
or returning the cash collateral thereof, in the event a borrower fails to return loaned securities or pay
distributions thereon. There were no such failures by any borrower during the fiscal year, nor were
there any losses during the period resulting from the default of a borrower or lending agent. At year
end, the pension trust funds had no custodial credit risk exposure to borrowers because the amounts
BASIC FINANCIAL STATEMENTS
72 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
the pension trust funds owed the borrower exceeded the amounts the borrowers owed the pension
trust funds. Information pertaining to the securities lending transactions as of June 30, 2021, is
presented as follows:
Securities Lent
Underlying
Securities
C ash C ollateral
Investment Value
Securities
C ollateral
Investment Value
Primary Government - Pension Trust Funds:
Lent for cash collateral:
U.S. Government securities 7,178,483$ 7,324,516 -
C orporate and other bonds 42,296,228 43,340,791 -
C ommon and preferred stock 110,296,185 113,024,180 -
Lent for securities collateral:
U.S. Government securities 81,403,351 - 87,557,268
C orporate and other bonds 10,958,325 - 12,841,020
C ommon and preferred stock 276,584,027 - 307,083,470
Total securities lent 528,716,599$ 163,689,487 407,481,758
Component Unit - Pension Trust Fund:
Lent for cash collateral:
Domestic corporate bonds 55,178,653$ 56,542,403 -
Domestic stock 76,149,463 77,923,350 -
International bonds 1,794,100 1,877,850 -
International stock 2,271,307 2,399,178 -
U.S. Government securities 8,192,002 8,362,318 -
Total securities lent 143,585,525$ 147,105,099 -
7. Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of
the investment. Per the reporting entity’s policy, pooled investments are limited to U.S. dollar
denominated instruments. The pension trust funds are allowed to invest in foreign currency
denominated instruments. The component unit’s pension trust fund’s currency risk exposures
primarily exist in the international equity and active fixed income holdings. At the present time, there
are no specific foreign currency guidelines for equities or active fixed income investments; however,
equity and fixed income managers are all measured against specific performance standard and risk
guidelines identified in the component unit’s pension trust fund’s investment policy. The fair value in
U.S. dollars of the pension trust funds’ foreign currency investments as of June 30, 2021, is presented
on the following pages:
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 73
Foreign Currency Risk
International Securities
C ash and
C ash
Equivalents Equity
C onvertible
and
Fixed Income
Total
U.S. Dollars
Primary Government - Pension Trust Funds:
Australian Dollar (156,150)$ 87,018,021 308,659 87,170,530
Brazil Real 2,374 65,123,087 (412,665) 64,712,796
C anadian Dollar 17,069 37,136,394 - 37,153,463
C hilean Peso - 31,159,581 - 31,159,581
C olombian Peso 27 24,986,269 157,158 25,143,454
C zech Koruna - 21,744,546 - 21,744,546
Danish Krone 745 29,225,770 6,296,550 35,523,065
Euro C urrency Unit 448,647 99,779,287 - 100,227,934
Hong Kong Dollar 148,858 22,845,417 8,995,911 31,990,186
Hungarian Forint - 8,215,461 - 8,215,461
Indian Rupee 5,474 5,454,428 2,290,997 7,750,899
Indonesian Rupiah - - 6,250,740 6,250,740
Japanese Yen 1,277,929 82,032,753 - 83,310,682
Malaysian Ringgit - 102,257 5,958,092 6,060,349
Mexican Peso - 115,575 5,559,838 5,675,413
New Taiwan Dollar 317,744 8,487,781 - 8,805,525
New Zealand Dollar - 242,116 4,933,312 5,175,428
Norwegian Krone - 6,074,384 (249,421) 5,824,963
Peruvian Sol - - 117,959 117,959
Philippine Peso 8,274 2,543,471 - 2,551,745
Polish Zloty - - 2,191,013 2,191,013
Pound Sterling 53,319 65,545,291 - 65,598,610
Russian Ruble - - 1,322,203 1,322,203
Singapore Dollar 31,211 7,932,228 620,539 8,583,978
South African Rand 13 160,767 400,385 561,165
South Korean Won 3,336 4,389,592 (318,893) 4,074,035
Swedish Krona 3,606 13,630,138 (1,682,248) 11,951,496
Swiss Franc 514 28,549,979 (2,755,842) 25,794,651
Thailand Baht (5) 639,785 (6,695,031) (6,055,251)
Turkish Lira - 83,413 - 83,413
Total fair value 2,162,985$ 653,217,791 33,289,256 688,670,032
BASIC FINANCIAL STATEMENTS
74 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Foreign Currency Risk
International Securities
C ash & C ash
Equivalents Equity
C onvertible
and
Fixed Income
Total
U.S. Dollars
Component Unit - Pension Trust Fund: *
Australian Dollar 9,480$ 8,920,154 - 8,929,634
Brazil Real 27,956 4,227,852 2,754,103 7,009,911
C anadian Dollar 3,336 4,789,106 - 4,792,442
C hinese Yuan Renminbi 30,546 - - 30,546
C zech Koruna - 342,028 - 342,028
Danish Krone 146,734 14,808,713 - 14,955,447
Euro C urrency Unit 647,035 59,864,766 15,230,770 75,742,571
Hong Kong Dollar 155,708 24,725,293 - 24,881,001
Hungarian Forint - 69,190 - 69,190
Indian Rupee - - 616,557 616,557
Israeli Shekel - 438,272 - 438,272
Japanese Yen 231,731 26,121,053 - 26,352,784
Malaysian Ringgit 13,603 832,235 - 845,838
Mexican Peso 28,837 313,753 1,340,158 1,682,748
New Taiwan Dollar 86,434 12,976,061 - 13,062,495
New Zealand Dollar 10,724 1,354,997 - 1,365,721
Norwegian Krone 8,541 1,410,484 - 1,419,025
Polish Zloty - 2,147,858 - 2,147,858
Pound Sterling 180,136 21,431,468 16,418 21,628,022
Qatari Riyal 11,493 834,532 - 846,025
Russian Ruble 277 - - 277
Singapore Dollar - 46,082 - 46,082
South African Rand - 423,876 - 423,876
South Korean Won 36,769 11,353,286 70,504 11,460,559
Swedish Krona 79,401 14,560,735 - 14,640,136
Swiss Franc 451,871 26,956,293 - 27,408,164
Thailand Baht - 4,094,654 - 4,094,654
Turkish Lira 463 108,867 - 109,330
UAE Dirham 9,426 251,046 - 260,472
Total fair value 2,170,501$ 243,402,654 20,028,510 265,601,665
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 75
8. Derivatives
In order to enhance investment returns and manage risk exposure, the Primary government’s pension
trust funds (Pension trust funds) regularly invest in derivative financial instruments with off-balance-
sheet risk. The Pension trust funds also entered into derivative transactions to gain exposure to
currencies and markets where derivatives are the most cost-effective instrument. During fiscal year
2021, the Pension trust funds invested directly in various derivatives including asset-backed
securities, collateralized mortgage obligations, exchange-traded futures contracts, forward currency
contracts, options, swaps, and floating rate securities. Some traditional on-balance-sheet securities,
such as structured notes, can have derivative-like characteristics where the return may be linked to
one or more indices. Asset-backed securities, such as collateralized mortgage obligations (CMOs),
are sensitive to changes in interest rates and pre-payments. Futures, forwards, options, and swaps
generally are not recorded on the financial statements, whereas floating rate securities, structured
notes, and asset-backed securities are recorded. The Pension trust funds also have exposure to
derivatives indirectly through their ownership interests in certain hedge funds, mutual funds, and
commingled funds which may use, hold, or write derivative financial instruments.
Derivative investments may involve credit and market risk in excess of amounts recognized on the
financial statements. The Pension trust funds could be exposed to risk if the counterparties to the
contracts are unable to meet the terms of the contracts. Holders of futures contracts look to the
exchange for performance under the contract and not to the other party holding the offsetting futures
position; therefore, the amount at risk due to nonperformance of counterparties to futures contracts is
minimal. For counterparties involving over the counter derivatives, the Boards of Trustees of the
Pension trust funds seek to control such risk through counterparty credit evaluations, counterparty
credit limits, and exposure monitoring procedures conducted by investment managers and staff. To
address counterparty risk, the Pension trust funds instruct the investment managers who use swaps,
forwards, and options to only enter into contracts with counterparties rated at investment grade of
BBB or better by at least one nationally recognized rating agency.
The Pension trust funds held four types of derivative financial instruments with notional values
carried off-balance-sheet: futures, swaps, currency forwards, and options. Those financial
instruments provide the Pension trust funds with the opportunity to build passive benchmark
positions, manage portfolio duration in relation to various benchmarks, adjust portfolio yield curve
exposure, enhance returns, and gain market exposure to various indices in a more efficient way and at
lower transaction costs. Risk is inherent to most investments.
Futures contracts are contracts to deliver or receive securities at a specified future date and at a
specified price or yield. Futures contracts are traded on organized exchanges (exchange-traded) and
typically require an initial margin (collateral) in the form of cash or marketable securities. The net
change in the futures contract value is settled daily with the exchanges in cash and the net gains or
losses are included in the Pension trust funds’ financial statements. Holders of futures contracts look
to the exchange for performance under the contract and not to the entity holding the offsetting futures
position. Accordingly, the amount at risk posed by nonperformance of counterparties to futures
contracts is minimal. The notional value of the Pension trust funds’ investment in futures contracts at
June 30, 2021, is shown in the table on the following page:
BASIC FINANCIAL STATEMENTS
76 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Base Exposure Notional C ost
Primary Government - Pension Trust Funds:
C ash & C ash Equivalent Futures:
Long -$ -
Short (409,441,948) (419,459,799)
Equity Futures:
Long 787,297,950 779,456,444
Short (143,891,045) (147,674,400)
Fixed Income Futures:
Long 394,661,017 389,567,765
Short (7,900,188) (7,618,362)
C ommodity Futures:
Long 412,692,756 418,463,356
Short - -
Total 1,033,418,542$ 1,012,735,004
Future C ontract Types
The Pension trust funds enter into several types of swap contracts in which two counterparties agree
to exchange one stream of payments for another over some agreed to period of time. Swaps are used
to manage risk and enhance returns. All counterparties are rated A or better. The Pension trust
funds’ swap contracts outstanding at June 30, 2021, is summarized as follows:
Base Exposure Fair Value
Primary Government - Pension Trust Funds:
Fixed Income Swaps:
C leared Interest Rate Swaps (17,569,984)$ (19,885,880)
C leared C redit Default Swaps 2,000,165 1,969,081
C leared Zero C oupon Swaps (1,406,890) (1,550,162)
Total (16,976,709)$ (19,466,961)
Swap Types
Option contracts may be exchanged, traded, or negotiated directly in over the counter transactions
between two counterparties. Options holders have the right, but not the obligation, to purchase or sell
a financial instrument at a future price and date. The Pension trust funds can both purchase and write
options. Exchange traded options rely on the exchange for performance and the risk to non-
performance of counterparties is minimal. All counterparties for over the counter options are rated A
or better. The Pension trust funds option contracts at June 30, 2021, are presented on the following
page.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 77
C ost Fair Value
Unrealized
Gain/(loss)
Primary Government - Pension Trust Funds:
Equity Options:
Purchased C all (353,345)$ (495,730) (142,385)
Fixed Income Options:
Written C all - - -
Total (353,345)$ (495,730) (142,385)
Currency forwards represent foreign exchange contracts and are used to effect settlements and to
protect the base currency value of portfolio assets denominated in foreign currencies against
fluctuations in the exchange rates of those currencies or to gain exposure to the change in fair value of
a specific currency. A forward foreign currency exchange contract is a commitment to purchase or
sell a foreign currency at a future date and at a negotiated price. The credit risk of currency contracts
that are exchange-traded lies with the clearinghouse of the exchange where the contracts are traded.
The credit risk of currency contracts traded over-the counter lies with the counterparty, and exposure
usually is equal to the unrealized profit on in-the money contracts. All counterparties are rated A or
better. The market risk in foreign currency contracts is related to adverse movements in currency
exchange rates. The net unrealized gain on foreign currency spot and forward contracts at June 30,
2021, was $64,237, and the Pension trust funds’ currency forwards contracts are summarized as
follows:
Foreign C urrency C ontracts Purchased
Notional
(Local C urrency) C ost
Fair Value of Foreign
C urrency C ontract
Payable in U.S. Dollars
Unrealized
Gain(Loss)
Primary Government - Pension Trust Funds:
Australian Dollar (17,670,000) (13,636,681)$ (13,268,922)$ $ 367,759
Brazil Real (730,000) (139,154) (145,301) (6,147)
C olumbian Peso (570,000,000) (152,610) (152,452) 158
Euro C urrency Unit (7,155,000) (8,539,561) (8,491,030) 48,531
Hong Kong Dollar (229,587) (29,562) (29,564) (2)
Indonesian Rupiah (69,000,000,000) (4,777,563) (4,732,503) 45,060
Mexican Peso (16,400,000) (803,502) (819,496) (15,994)
New Zealand Dollar (3,910,000) (2,798,003) (2,732,086) 65,917
Polish Zloty (920,000) (250,443) (241,673) 8,770
Pound Sterling (343,000) (477,533) (473,941) 3,592
Russian Ruble (New) (11,000,000) (148,608) (149,738) (1,130)
South African Rand (96,700,000) (6,699,506) (6,733,610) (34,104)
South Korean Won (8,730,000,000) (7,690,708) (7,724,942) (34,234)
Swiss Franc (6,400,000) (7,092,102) (6,937,190) 154,912
Total Foreign C urrency C ontracts Purchased (52,632,448)$ 603,088
Foreign C urrency C ontracts Sold
Primary Government - Pension Trust Funds:
Brazil Real 11,120,000 1,980,551$ $ 2,213,349 $ 232,798
C hilean Peso 9,625,000,000 13,454,304 13,195,293 (259,011)
C olombian Peso 2,820,000,000 778,371 754,237 (24,134)
Euro C urrency Unit 15,120,000 18,264,141 17,939,741 (324,400)
Hungarian Forint 1,550,000,000 5,152,093 5,234,469 82,376
New Zealand Dollar 3,910,000 2,797,585 2,732,086 (65,499)
Polish Zloty 47,570,000 12,469,174 12,496,442 27,268
Pound Sterling 5,440,000 7,711,934 7,515,950 (195,984)
Russian Ruble (new) 396,000,000 5,280,833 5,384,684 103,851
South Korean Won 8,730,000,000 7,802,902 7,724,942 (77,960)
Thailand Baht 44,300,000 1,420,226 1,382,070 (38,156)
Total Foreign C urrency C ontracts Sold 76,573,263$ (538,851)
BASIC FINANCIAL STATEMENTS
78 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
As permitted by the Board’s policies, the Pension trust funds hold off-balance-sheet derivatives in a
small number of separately managed accounts. Investment managers are prohibited from purchasing
securities on margin or using leverage unless specifically permitted within the investment manager’s
guidelines. Derivative instruments covered under the scope of GASB 53 are reported at fair value.
The changes in fair value of derivative instruments that are used for investment purposes are reported
within the investment revenue classification. Gains and losses on derivative securities are determined
based upon fair values as determined by our custodian and recorded in the Statement of Changes in
Plan Net Position of the pension trust funds.
As permitted by the Code, the component unit’s pension trust fund (ERFC) invests in derivative
instruments on a limited basis in accordance with the Board of Trustees’ investment policy.
Derivatives provide a means for ERFC to increase earnings and/or hedge against potential losses.
The risks associated with derivative instruments, include market risk resulting from
fluctuations in interest and currency rates, the credit worthiness of counter parties to any contracts
entered into, and the credit worthiness of mortgages related to collateralized mortgage obligations
(CMOs). Specific authorization by the Board is required should investment managers seek to
purchase securities on margin or leverage. During fiscal year 2021, ERFC had no direct investments
in derivatives.
9. Deferred Outflows/Inflows of Resources
In addition to assets, the financial statements will sometimes report a separate section for deferred
outflows of resources representing a consumption of net position that applies to a future period and so
will not be recognized as an outflow of resources (expense) until then. Deferred outflows for
pensions and OPEB activities result from changes in actuarial proportions, changes in actuarial
assumptions, differences between projected and actual earnings on pension and OPEB investments,
differences between expected and actual experience and pension and OPEB contributions made
subsequent to the measurement date. Deferred outflows related to investment differences are deferred
and amortized over a closed five–year period and all other deferred outflows, except contributions
made subsequent to the measurement date, are amortized over the remaining service life of all
participants. In addition to liabilities, the financial statements will sometimes report a separate section for deferred
inflows of resources representing an acquisition of net position that applies to a future period and so
will not be recognized as an inflow of resources (revenue) until that time. Deferred inflows for
pension and OPEB activities result from changes in actuarial proportions, changes in actuarial
assumptions, differences between projected and actual earnings on pension and OPEB investments
and differences between expected and actual experience. Deferred inflows related to investment
differences are deferred and amortized over a closed five-year period and all other deferred inflows
are amortized over the remaining service life of all participants.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 79
C. PROPERTY TAXES
Real estate is assessed on January 1 each year at the estimated fair market value of all land and improvements.
Real estate taxes are due in equal installments, on July 28 and December 5. Unpaid taxes automatically
constitute liens on real property which must be satisfied prior to sale or transfer, and after two years,
foreclosure proceedings can be initiated.
Personal property taxes on vehicles and business property are based on the estimated fair market value at
January 1 each year. The tax on a vehicle may be prorated for the length of time the vehicle has situs in the
County. A declaration form is required to be filed, and there is a ten percent penalty for late filing. Personal
property taxes are due on October 5, with certain exceptions. Delinquency notices are sent before statutory
measures, such as the seizure of property and the placing of liens on bank accounts and/or wages, are
initiated.
Real estate taxes not paid by the due dates are assessed a ten percent late payment penalty on the tax amount.
Personal property taxes are initially assessed a ten percent late payment penalty, which increases to twenty-
five percent after thirty days of delinquency. Furthermore, interest accrues from the first day following the
due date at an annual rate of one percent for real estate taxes and five percent for personal property taxes. The
net delinquent taxes receivable, including interest and penalties, as of June 30, 2021, after allowances for
uncollectible amounts, is $28,372,527 of which $4,055,658 has been included in tax revenue for fiscal year
2021 because it was collected within 45 days after June 30.
As required by GAAP, the County reports real estate and personal property taxes (net of allowances) assessed
for calendar year 2021 as receivables (net of payments totaling $40,267,328 received in advance of the due
date) and deferred tax revenue because the County has an enforceable legal claim to these resources at June
30, 2021; however, these resources, which amount to $3,754,774,602, will not be available to the County
until fiscal year 2022.
The 1998 Virginia General Assembly enacted the Personal Property Tax Relief Act to provide property tax
relief on the first $20,000 of value of motor vehicles not used for business purposes. Due to budget
constraints, the 2003 Virginia General Assembly froze the tax reduction at 70 percent. The 2005 Virginia
General Assembly revised this measure further to limit its tax relief payments to all localities to a total of
$950 million per tax year beginning with 2006 (fiscal year 2007). The County’s fixed share of the $950
million is $211,313,944, as determined by its share of the total payments made to all localities by the
Commonwealth during calendar years 2004 and 2005 for tax year 2004 (fiscal year 2005). The County’s
fixed share from the Commonwealth is reported as intergovernmental revenue in the General Fund.
BASIC FINANCIAL STATEMENTS
80 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
D. RECEIVABLES
Receivables and allowances for uncollectible receivables of the primary government, excluding fiduciary
funds, at June 30, 2021, consist of the following:
General
Fund
Nonmajor
Governmental
Funds
Enterprise
Fund
Internal
Service
Funds
Total Primary
Government
(Exhibit A)
Receivables:
Accounts $ 13,673,760 14,376,675 1,363,801 4,662 29,418,898
Accrued interest - 13,423,679 - - 13,423,679
Property taxes:
Delinquent 52,511,563 - - - 52,511,563
Not yet due 3,512,657,671 - - - 3,512,657,671
Business license taxes - delinquent 29,938,585 - - - 29,938,585
Loans - 111,412,644 - - 111,412,644
Total receivables 3,608,781,579 139,212,998 1,363,801 4,662 3,749,363,040
Allowances for uncollectibles:
Accounts receivable (3,040,444) - - - (3,040,444)
Accrued interest - (6,368,379) - - (6,368,379)
Property taxes:
Delinquent (24,139,036) - - - (24,139,036)
Not yet due (9,464,341) - - - (9,464,341)
Business license taxes - delinquent (27,320,326) - - - (27,320,326)
Loans - (49,581,323) - - (49,581,323)
Total allowances for uncollectibles (63,964,147) (55,949,702) - - (119,913,849)
Total net receivables 3,544,817,432$ 83,263,296 1,363,801 4,662 3,629,449,191
Receivables of the component units, excluding fiduciary funds, at June 30, 2021, consist of the following:
Public
Schools FC RHA
Park
Authority EDA
Total
C omponent
Units
Receivables:
Accounts 15,397,845$ 6,345,696 40,160 - 21,783,701
Accrued interest 12,538 151,743 - - 164,281
Notes, mortgages, and other - 28,549,964 - - 28,549,964
Total receivables 15,410,383 35,047,403 40,160 - 50,497,946
Allowances for uncollectible - (1,081,777) - - (1,081,777)
Total net receivables 15,410,383$ 33,965,626 40,160 - 49,416,169
Delinquent property taxes receivable from taxpayers in the General Fund as of June 30, 2021, are as follows:
Year of Levy
Real
Estate
Personal
Property Total
2019 10,573,002$ 15,296,030 25,869,032
2018 2,262,227 5,660,973 7,923,200
2017 827,613 3,829,056 4,656,669
Prior years 1,256,308 5,656,563 6,912,871
Total delinquent taxes 14,919,150$ 30,442,622 45,361,772
Penalty and interest 7,149,791
Total delinquent taxes, penalty and interest 52,511,563
Allowances for uncollectibles (24,139,036)
Net delinquent tax receivables 28,372,527$
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 81
Amounts due to the primary government and component units from other governmental units at June 30,
2021, include the following:
General
Fund
Nonmajor
Governmental
Funds
Enterprise
Fund
Internal
Service Funds
Total
(Exhibit A)
Public Schools Park Authority
Federal government 108,957$ 11,609,427 185,220 - 11,903,604 47,238,298 184,300
State government:
Property tax relief - not yet due 211,313,944 - - - 211,313,944 - -
Other 51,808,646 49,634,306 2,047,349 - 103,490,301 21,094,994 -
Local governments 688,355 17,734,450 62,741,144 2,352 81,166,301 171,129 1,134
Total intergovernmental units 263,919,902$ 78,978,183 64,973,713 2,352 407,874,150 68,504,421$ 185,434$
Federal-Build America Bond subsidy 486,917
Total (Exhibit A) 408,361,067$
Primary Government C omponent Unit
E. INTERFUND BALANCES AND TRANSFERS
Interfund receivables and payables are recorded when funds overdraw their share of pooled cash. All
amounts are expected to be paid within one year. Interfund balances as of June 30, 2021, are as follows:
Interfund
Receivables
Interfund
Payables
Primary Government
General Fund 834,601$ 1,577,996
Nonmajor Governmental Funds - 834,601
Internal Service Funds 1,577,996 -
Total primary government 2,412,597$ 2,412,597
Component Unit
Public Schools:
General Fund 300,000$ -
Nonmajor Governmental Funds - 300,000
Total component units 300,000$ 300,000
BASIC FINANCIAL STATEMENTS
82 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Due to/from primary government and component units represent amounts paid by one entity on behalf of the
other entity. Due to/from primary government and component units as of June 30, 2021, are as follows:
Receivable Entity Amount
Component Units Primary Government
Public Schools General Fund 235,842$
Park Authority General Fund 2,738,559
Park Authority Nonmajor Governmental Fund 2,000,914
EDA General Fund 470,300
Total 5,445,615$
Primary Government Component Unit
General Fund Park Authority 135,302$
General Fund Public Schools 196,515
Total 331,817$
Payable Entity
The primary purpose of interfund transfers is to provide funding for operations, including those of the Fairfax-
Falls Church Community Services Board, debt service, and capital projects. Interfund transfers for the year
ended June 30, 2021, are as follows:
Transfers In Transfers Out
Primary Government
General Fund 7,139,163$ 651,171,626
Nonmajor Governmental Funds 727,606,761 99,068,047
Internal Service Funds 15,493,749 -
Total primary government 750,239,673$ 750,239,673
Component Unit
Public Schools:
General Fund -$ 44,299,257
C apital Projects Fund 13,078,444 -
Nonmajor Governmental Funds 31,220,813 -
Total component units 44,299,257$ 44,299,257
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 83
F. CAPITAL ASSETS
Capital assets activity for the primary government and component units for the year ended June 30, 2021, is
as follows:
Balances July 1, 2020 Increases Decreases
Balances
June 30, 2021
Primary Government
Governmental activities:
Non-depreciable/non-amortizable:
Land and easements 460,824,135$ 2,573,211 - 463,397,346
C onstruction in progress 317,482,087 146,565,818 (113,006,340) 351,041,565
Equipment under construction 32,326,248 7,114,005 (8,844,691) 30,595,562
Software in development 15,938,112 14,483,525 (9,991,061) 20,430,576
Total non-depreciable/non-amortizable 826,570,582 170,736,559 (131,842,092) 865,465,049
Depreciable/amortizable:
Vehicles and equipment 517,254,071 30,785,435 (4,301,386) 543,738,120
Software 163,335,355 17,821,190 - 181,156,545
Library collections 115,106,917 3,744,342 (51) 118,851,208
Buildings 1,667,538,552 65,621,896 (5,943,488) 1,727,216,960
Improvements 287,666,885 15,074,672 - 302,741,557
Infrastructure 1,147,273,589 61,893,992 (8,866,103) 1,200,301,478
Total depreciable/amortizable 3,898,175,369 194,941,527 (19,111,028) 4,074,005,868
Less accumulated depreciation/amortization for:
Vehicles and equipment (357,268,349) (36,175,488) 2,315,959 (391,127,878)
Software (62,675,973) (12,608,357) - (75,284,330)
Library collections (102,835,728) (4,026,177) - (106,861,905)
Buildings (655,014,982) (49,250,012) 3,329,832 (700,935,162)
Improvements (115,741,020) (12,013,549) - (127,754,569)
Infrastructure (390,204,976) (28,943,549) 586,802 (418,561,723) Total accumulated
depreciation/amortization (1,683,741,028) (143,017,132) 6,232,593 (1,820,525,567)
Total capital assets, being
depreciated/amortized, net 2,214,434,341 51,924,395 (12,878,435) 2,253,480,301
3,041,004,923 222,660,954 (144,720,527) 3,118,945,350
Business-type activities:
Non-depreciable/non-amortizable:
Land and easements 18,016,126 47,638 - 18,063,764
C onstruction in progress 228,534,517 81,200,014 (24,558,643) 285,175,888
Total non-depreciable/non-amortizable 246,550,643 81,247,652 (24,558,643) 303,239,652
Depreciable/amortizable:
Vehicles and equipment 15,844,067 1,387,594 (66,694) 17,164,967
Purchased capacity 1,124,322,562 30,647,350 (177,000) 1,154,792,912
Buildings and improvements 91,782,433 68,048 - 91,850,481
Infrastructure 1,419,953,831 41,408,593 - 1,461,362,424
Total depreciable/amortizable 2,651,902,893 73,511,585 (243,694) 2,725,170,784
Less accumulated depreciation/amortization for:
Vehicles and equipment (11,128,251) (1,216,551) 66,694 (12,278,108)
Purchased capacity (461,537,128) (30,228,629) - (491,765,757)
Buildings and improvements (54,228,906) (2,237,874) (29,274) (56,496,054)
Infrastructure (692,576,194) (31,946,416) - (724,522,610) Total accumulated
depreciation/amortization (1,219,470,479) (65,629,470) 37,420 (1,285,062,529)
Total capital assets, being
depreciated/amortized, net 1,432,432,414 7,882,115 (206,274) 1,440,108,255
1,678,983,057 89,129,767 (24,764,917) 1,743,347,907
4,719,987,980$ 311,790,721 (169,485,444) 4,862,293,257
Total capital assets, net
- Governmental activities
Total capital assets, net
- Business-type activities
Total capital assets, net
- Primary government
BASIC FINANCIAL STATEMENTS
84 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Balances June 30, 2020 Increases Decreases
Balances
June 30, 2021
Component Units
Public Schools
Non-depreciable/non-amortizable:
Land 46,837,095$ - - 46,837,095
C onstruction in progress 400,162,834 116,161,588 (195,118,539) 321,205,883
Software in development 90,987 686,085 - 777,072
Total non-depreciable/non-amortizable 447,090,916 116,847,673 (195,118,539) 368,820,050
Depreciable/amortizable:
Vehicles and equipment 358,274,694 60,709,940 (11,876,026) 407,108,608
Software 13,260,834 - - 13,260,834
Library collections 21,368,173 2,284,301 (3,039,506) 20,612,968
Buildings 1,279,418,007 37,542,482 - 1,316,960,489
Improvements 2,859,205,204 187,182,681 - 3,046,387,885
Total depreciable/amortizable 4,531,526,912 287,719,404 (14,915,532) 4,804,330,784
Less accumulated depreciation/amortization for:
Vehicles and equipment (249,097,908) (37,641,831) 11,562,652 (275,177,087)
Software (8,347,753) (725,409) - (9,073,162)
Library collections (15,156,291) (2,080,170) 3,039,506 (14,196,955)
Buildings (679,914,604) (24,322,842) - (704,237,446)
Improvements (1,371,680,537) (109,610,964) - (1,481,291,501)
Total accumulated depreciation/amortization (2,324,197,093) (174,381,216) 14,602,158 (2,483,976,151)
Total capital assets, being depreciated/amortized, net 2,207,329,819 113,338,188 (313,374) 2,320,354,633
Total capital assets, net - Public Schools 2,654,420,735 230,185,861 (195,431,913) 2,689,174,683
FCRHA
Non-depreciable/non-amortizable:
Land, as restated 46,367,105 - (1,976,232) 44,390,873
C onstruction in progress 5,755,293 758,263 (2,636,721) 3,876,835
Total non-depreciable/non-amortizable 52,122,398 758,263 (4,612,953) 48,267,708
Depreciable/amortizable:
Vehicles and equipment 2,016,815 5,369,367 - 7,386,182
Buildings and improvements 234,411,934 12,290,105 (11,281,655) 235,420,384
Total depreciable/amortizable 236,428,749 17,659,472 (11,281,655) 242,806,566
Less accumulated depreciation/amortization for:
Vehicles and equipment (2,074,067) (28,997) - (2,103,064)
Buildings and improvements (150,011,290) (5,821,448) 10,039,127 (145,793,611)
Total accumulated depreciation/amortization (152,085,357) (5,850,445) 10,039,127 (147,896,675)
Total capital assets, being depreciated/amortized, net 84,343,392 11,809,027 (1,242,528) 94,909,891
Total capital assets, net - FCRHA 136,465,790 12,567,290 (5,855,481) 143,177,599
Park Authority
Non-depreciable/non-amortizable:
Land and easements 391,151,561 9,287,641 (977,803) 399,461,399
C onstruction in progress 16,028,420 19,952,220 (22,769,010) 13,211,630
Total non-depreciable/non-amortizable 407,179,981 29,239,861 (23,746,813) 412,673,029
Depreciable/amortizable:
Vehicles and equipment 14,167,897 346,848 (451,731) 14,063,014
Buildings and improvements 518,423,130 22,432,676 (112,402) 540,743,404
Total depreciable/amortizable 532,591,027 22,779,524 (564,133) 554,806,418
Less accumulated depreciation/amortization for:
Vehicles and equipment (8,530,101) (470,213) 451,731 (8,548,583)
Buildings and improvements (267,710,194) (18,102,247) 93,467 (285,718,974)
Total accumulated depreciation/amortization (276,240,295) (18,572,460) 545,198 (294,267,557)
Total capital assets, being depreciated/amortized, net 256,350,732 4,207,064 (18,935) 260,538,861
Total capital assets, net - Park Authority 663,530,713 33,446,925 (23,765,748) 673,211,890
EDA
Depreciable/amortizable:
Vehicles and equipment 19,289 - - 19,289
Buildings and improvements 1,176,811 - - 1,176,811
Total depreciable/amortizable 1,196,100 - - 1,196,100
Less accumulated depreciation/amortization for:
Vehicles and equipment (17,729) (1,470) - (19,199)
Buildings and improvements (922,074) (109,174) - (1,031,248)
Total accumulated depreciation/amortization (939,803) (110,644) - (1,050,447)
Total capital assets, net - EDA 256,297 (110,644) - 145,653
Total capital assets, net - Component units 3,454,673,535$ 276,089,432 (225,053,142) 3,505,709,825
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 85
Depreciation and amortization expense for the year ended June 30, 2021, charged to the functions of the
primary government and component units is as follows:
G. RETIREMENT PLANS
The reporting entity administers the following four separate public employee retirement systems that provide
pension benefits for various classes of employees. In addition, professional employees of Public Schools
participate in a plan sponsored and administered by the Virginia Retirement System (VRS).
1. County Administered Plan Descriptions
Fairfax County Employees’ Retirement System
The Fairfax County Employees’ Retirement System (ERS) is a legally separate single-employer
defined benefit pension plan established under the Code of Virginia, which covers only employees of
the reporting entity. The plan covers full-time and certain part-time employees of the reporting entity
who are not covered by other plans of the reporting entity or the VRS. This is the only plan that
provides pension benefits to both the primary government and component units. The balances have
been allocated in the financial statements as follows: County, including business type activities, 68.9
percent, FCPS 25.9 percent, EDA 0.4 percent, FCRHA 1.6 percent, and FCPA 3.2 percent of all
totals. More information is shown in section 6 of this note.
The ERS issues a publicly available annual financial report that includes financial statements and
required supplementary information. That report may be obtained by writing to the Employees’
Retirement System, 12015 Lee Jackson Memorial Highway, Suite 350, Fairfax, VA 22033, or by
calling (703) 279-8200. It may be accessed online for additional information including details of the
plan fiduciary net position. The information presented in this report follows the same accounting
basis as the plan. ERS Report
Governmental
Activities
Business-type
Activities
C omponent
Units
Primary Government
General government administration 22,551,791$ - -
Judicial administration 3,734,054 - -
Public safety 10,414,100 - -
Public works 60,053,008 65,629,470 -
Health and welfare 3,340,325 - -
C ommunity development 17,008,007 - -
Parks, recreation, and cultural 8,180,400 - -
In addition, depreciation on capital assets held by the
C ounty's internal service funds is charged to the various
functions based on asset usage. 17,735,447 - -
Component Units
Public Schools - - 174,381,216
FC RHA - - 5,850,445
Park Authority - - 18,572,606
EDA - - 110,644
Total depreciation and amortization expense 143,017,132$ 65,629,470 198,914,911
BASIC FINANCIAL STATEMENTS
86 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fairfax County Police Officers Retirement System
The Fairfax County Police Officers Retirement System (PORS) is a legally separate single-employer
defined benefit pension plan established under the Code of Virginia. The plan covers County police
officers who are not covered by other plans of the reporting entity or the VRS and former Park Police
officers who elected to transfer to the PORS from the Uniformed Retirement System effective
January 22, 1983.
The PORS issues a publicly available annual financial report that includes financial statements and
required supplementary information. That report may be obtained by writing to the Police Officers
Retirement System, 12015 Lee Jackson Memorial Highway, Suite 350, Fairfax, VA 22033, or by
calling (703) 279-8200. It may be accessed online for additional information including details of the
plan fiduciary net position. The information presented in this report follows the same accounting
basis as the plan. PORS Report
Fairfax County Uniformed Retirement System
The Fairfax County Uniformed Retirement System (URS) is a legally separate single-employer
defined benefit pension plan established under the Code of Virginia. The plan covers uniformed or
sworn employees of the Fire and Rescue Department, Office of Sheriff, Park Police, helicopter pilots,
and Animal Control Officers as well as non-administrative positions of the Department of Public
Safety Communications who are not covered by other plans of the reporting entity or the VRS.
The URS issues a publicly available annual financial report that includes financial statements and
required supplementary information. That report may be obtained by writing to the Uniformed
Retirement System, 12015 Lee Jackson Memorial Highway, Suite 350, Fairfax, VA 22033, or by
calling (703) 279-8200. It may be accessed online for additional information including details of the
plan fiduciary net position. The information presented in this report follows the same accounting
basis as the plan. URS Report
The Educational Employees’ Supplementary Retirement System
The Educational Employees’ Supplementary Retirement System of Fairfax County (ERFC) is a
legally separate single-employer retirement system established under the Code of Virginia. The
ERFC covers all full-time educational and civil service employees who are employed by the Public
Schools and who are not covered by other plans of the reporting entity.
The ERFC issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by writing to the Educational Employees’
Supplementary Retirement System, 8001 Forbes Place, Suite 300, Springfield, VA 22151. It may be
accessed online for additional information including details of the plan fiduciary net position. The
information presented in this report follows the same accounting basis as the plan. ERFC Report
2. Benefit Provisions and Requirements
Fairfax County Employees’ Retirement System
Benefit provisions are established and may be amended by County ordinances. All benefits vest at
five years of creditable service. Members who were hired before January 1, 2013 had the option to
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 87
elect to join Plan A or Plan B, and members who were hired on or after January 1, 2013 may elect to
join Plan C or Plan D. Members who were hired on or after July 1, 2019 are automatically enrolled in
Plan E. To be eligible for normal retirement, an individual must meet the following criteria: (a) attain
the age of 65 with five years of service, (b) for Plans A and B, attain the age of 50 with age plus years
of service being greater than or equal to 80, or (c) for Plans C, D, and E, attain the age of 55 with age
plus years of service being greater than or equal to 85. The normal retirement benefit is calculated
using average final compensation (i.e., the highest 78 consecutive two week pay periods or the
highest 36 consecutive monthly pay periods) and years (or partial years) of creditable service at date
of termination. For Plans A, B, C, and D, if normal retirement occurs before Social Security benefits
are scheduled to begin, an additional monthly benefit is paid to retirees. Plan E eliminates the pre-
Social Security Supplement; however, there is a cost-neutral Early Age Option for employees who
retire prior to full retirement age under Social Security. The plan provides that unused sick leave
credit may be used in the calculation of average final compensation by projecting the final salary
during the unused sick leave period. Those who commenced employment on or after January 1,
2013, may not use more than 2,080 hours of accrued sick leave toward service credit for retirement or
entry into the Deferred Retirement Option Program (DROP). The benefit for early retirement is
actuarially reduced and payable at early termination.
Effective July 1, 2005, a DROP was established for eligible members of the ERS. Members who are
eligible for normal service retirement are eligible to participate in this program. DROP provides the
ability for an employee to retire for purposes of the pension plan, while continuing to work and
receive a salary for a period of three years. During the DROP period, the pension plan accumulates
the accrued monthly benefit into an account balance identified as belonging to the member. The
account balance is credited with interest in the amount of 5.0 percent per annum, compounded
monthly. The monthly benefit is calculated using service and final compensation as of the date of
entry in DROP, with increases equal to the annual COLA adjustment provided for retirees.
Fairfax County Police Officers Retirement System
Benefit provisions are established and may be amended by County ordinances. All benefits vest at
five years of creditable service. Based on sworn in date, individuals were enrolled in Plan A, Plan B
or Plan C. To be eligible for normal retirement, an individual must meet the following criteria: For
Plan A (if sworn in before December 31, 2012) attain the age of 55 or have completed 25 years of
creditable service (20 years of creditable service if sworn in prior to July 1, 1981). For Plan B (sworn
on or after January 1, 2013) and for Plan C (sworn on or after July 1, 2019) attain the age of 55 or
have completed 25 years of creditable service. The normal retirement benefit is calculated using
average final compensation and years (or partial years) of creditable service at date of termination.
The plan provides that unused sick leave credit may be used in the calculation of average final
compensation by projecting the final salary during the unused sick leave period. For Plan B and Plan
C, individuals may not use more than 2,080 hours of accrued sick leave toward service credit for
retirement or DROP entry. For Plan C, individuals are not eligible for the one-time 3 percent
calculated retirement annuity increase from the plan. To be eligible for early retirement, the employee
must have 20 years of creditable service (does not apply if sworn in before July 1, 1981). The benefit
for early retirement is actuarially reduced and payable at early termination.
Effective October 1, 2003, a DROP was established for eligible members of the PORS. Members
who are eligible for normal service retirement are eligible to participate in this program. DROP
provides the ability for an employee to retire for purposes of the pension plan, while continuing to
BASIC FINANCIAL STATEMENTS
88 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
work and receive a salary for a period of three years. During the DROP period, the pension plan
accumulates the accrued monthly benefit into an account balance identified as belonging to the
member. The account balance is credited with interest in the amount of 5 percent per annum,
compounded monthly. The monthly benefit is calculated using service and final compensation as of
the date of entry in DROP, with increases equal to the annual COLA adjustment provided for retirees.
Fairfax County Uniformed Retirement System
Benefit provisions are established and may be amended by County ordinances. All benefits vest at
five years of creditable service. Employees hired before July 1, 1981 were enrolled in Plan A. Plan
A members were given the opportunity to enroll in Plan B as of July 1, 1981 and to enroll in Plan C
as of April 1, 1997. From July 1, 1981 through March 31, 1997, all new hires were enrolled in Plan
B. Plan B members were given the opportunity to enroll in Plan D as of April 1, 1997. From April 1,
1997 through December 31, 2012, all new hires were enrolled in Plan D. From January 1, 2013
forward, all new hires are enrolled in Plan E. From July 1, 2019 forward, all new hires are enrolled in
Plan F. To be eligible for normal retirement an individual must meet the following criteria: (a) attain
the age of 55 with six years of creditable service, or (b) complete 25 years of creditable service. The
normal retirement benefit is calculated using average final compensation and years (or partial years)
of creditable service at date of termination. Annual cost-of-living adjustments are provided to retirees
and beneficiaries equal to the lesser of 4 percent or the percentage increase in the Consumer Price
Index for the Washington Consolidated Metropolitan Statistical Area. The plan provides that unused
sick leave credit may be used in the calculation of average final compensation by projecting the final
salary during the unused sick leave period. Those enrolled in Plan E and Plan F may not use more
than 2,080 hours of accrued sick leave toward service credit for retirement or DROP entry. For Plan
F, individuals are not eligible for the one-time 3 percent calculated retirement annuity increase from
the plan. In addition, Plan F eliminates the pre-Social Security Supplement; however, there is a cost-
neutral Early Age Option for employees who retire prior to full retirement age under Social Security.
To be eligible for early retirement, employees must have 20 years of creditable service. The benefit
for early retirement is actuarially reduced and payable at early termination.
Effective October 1, 2003, a DROP was established for eligible members of the URS. Members who
are eligible for normal service retirement are eligible to participate in this program. DROP provides
the ability for an employee to retire for purposes of the pension plan, while continuing to work and
receive a salary for a period of three years. During the DROP period, the pension plan accumulates
the accrued monthly benefit into an account balance identified as belonging to the member. The
account balance is credited with interest in the amount of 5 percent per annum, compounded monthly.
The monthly benefit is calculated using service and final compensation as of the date of entry in
DROP, with increases equal to the annual COLA adjustment provided for retirees.
The Educational Employees’ Supplementary Retirement System
Benefit provisions for ERFC and ERFC 2001 are established and may be amended by ERFC’s Board
of Trustees (ERFC Board) subject to approval by the School Board. All members are vested for
benefits after five years of service. The ERFC benefit formula was revised effective July 1, 1988,
following changes to VRS, which ERFC has historically supplemented. The benefit structure is
designed to supplement VRS and Social Security benefits to provide a level retirement benefit
throughout retirement.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 89
ERFC 2001 Tier 1 and Tier 2 have a stand-alone structure. Member contributions for ERFC and
ERFC 2001 are made through an arrangement that results in a deferral of taxes on the contributions.
Further details of member contributions may be found in Article III of the ERFC and ERFC 2001
Plan Documents.
ERFC and ERFC 2001 provide for a variety of benefit payment types. ERFC’s payment types
include Service Retirement, Reduced Service, Disability, Death-in-Service, and Deferred Retirement.
ERFC 2001’s payment types include Service Retirement, Death-in-Service, and Deferred Retirement.
ERFC’s minimum eligibility requirements for receipt of full benefits range from members attaining
the age of 55 with 25 years of service to completing five years of service prior to age 65. The
minimum eligibility requirements for full benefits for ERFC 2001 Tier 1 members are age 60 with
five years of service or any age with 30 years of service. The minimum eligibility requirements for
full benefits for ERFC Tier 2 members are full Social Security age with five years of service or age
and service equal 90 (the rule of 90). Annual post-retirement cost-of-living increases are effective
each March 31. Participants in their first full year of retirement from ERFC 2001 Tier 1 receive a
1.49 percent increase. Participants who retire on or after January 1 receive no cost-of-living increase
that first March. Under ERFC 2001 Tier 2, the first cost-of-living will equal approximately half of
the full amount. Thereafter, the full cost-of-living will equal 100 percent of the Consumer Price
Index for all Urban Consumers for the Washington, D.C, metropolitan area for the period ending in
November of each year, capped at 4 percent. Additional details regarding benefit payment types can
be found in the actuarial valuation and the Plan Documents.
3. Funding Policy
Fairfax County Employees’ Retirement System
All contribution requirements for ERS are established and may be amended by County ordinances,
including member contribution rates. Plan A and Plan C require member contributions of 4.0 percent
of compensation up to the maximum Social Security wage base and 5.33 percent of compensation in
excess of the wage base. Plan B, Plan D, and Plan E require member contributions of 5.33 percent of
compensation.
The County is required to contribute at an actuarially determined rate; the rate for the year ended June
30, 2021, was 28.35 percent of annual covered payroll. The employer contribution made during the
measurement period of the liability was $234,743,643. The 2021 employer contribution totaled
$227,846,281.
Fairfax County Police Officers Retirement System
All contribution requirements for PORS are established and may be amended by County ordinances,
including member contribution rates. Member contributions were based on 8.65 percent of
compensation at June 30, 2021.
The County is required to contribute at an actuarially determined rate; the rate for the year ended June
30, 2021 was 41.60 percent of annual covered payroll. The employer contribution made for the
measurement period of the liability was $50,781,403. The 2021 employer contribution totaled
$50,348,130
BASIC FINANCIAL STATEMENTS
90 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fairfax County Uniformed Retirement System
All contribution requirements for URS are established and may be amended by County ordinances,
including member contribution rates. Plan A requires member contributions of 4.0 percent of
compensation up to the Social Security wage base and 5.75 percent of compensation in excess of the
wage base. Plan B requires member contributions of 7.08 percent of compensation up to the Social
Security wage base and 8.83 percent of compensation in excess of the wage base. Plan C requires
member contributions of 4.0 percent of compensation. Plan D, Plan E, and Plan F require
contributions of 7.08 percent of compensation.
The County is required to contribute at an actuarially determined rate; the rate for the year ended June
30, 2021 was 38.84 percent of annual covered payroll. The employer contribution made for the
measurement period of the liability was $69,930,974. The 2021 employer contribution totaled
$69,464,042.
The Educational Employees’ Supplementary Retirement System
All contribution requirements for ERFC plans are established and may be amended by the ERFC
Board with the approval of the School Board. The requirements are based upon a fundamental
financial objective of having rates of contribution that remain relatively level from generation to
generation of employees. To determine the appropriate employer contribution rates and to assess the
extent to which the fundamental financial objective is being achieved, ERFC has actuarial valuations
prepared annually. Members are required to contribute 3 percent of annual salary. The employer is
required to contribute at an actuarially determined rate which was 6.44 percent for fiscal year 2021.
Employer contributions to the pension plan were $104,784,310 and $104,741,255 for the years ended
June 30, 2021 and June 30, 2020. respectively.
The actuarial valuations are used to set the employer contribution rate for the two-year period
beginning 18 months after the valuation date. As such, the December 31, 2017 valuation
recommended that the contribution rate for the two-year period beginning July 1, 2019 to June 30,
2021 be increased from 6.26 percent to 6.44 percent.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 91
4. Actuarial Methods and Assumptions
The reported total pension liability (TPL) was based on participant data collected as of December 31,
2019 and an actuarial valuation as of June 30, 2020, using the entry age actuarial cost method, with a
measurement date of June 30, 2020. Significant actuarial assumptions used in the valuation for ERS,
PORS, and URS include:
Discount rate, net of plan investment expenses 7.25%
Inflation 2.75%
Salary increases, including inflation 2.75%
Investment rate of return, net of plan investment expenses 7.25%
Mortality Healthy and Disabled Mortality Table RP-2014
projected using the RPEC -2015 model
Actuarial Assumptions
ERFC assumptions deviate from the chart for salary increases, using a range of 3.25 percent -
9.05 percent. Mortality rates were based on RP-2014 mortality healthy annuitant total data set table
with fully generation two-dimensional sex distinct MP-2016 projection scale.
The actuarial assumptions used have been recommended by the actuary and adopted by the Board of
Trustees of ERS, PORS and URS based on the most recent review of the experience associated with
their respective plans, completed in 2016.
The rate of employer contributions to the ERS, PORS and URS is composed of normal cost,
amortization of the unfunded actuarial accrued liability and an allowance for administrative expenses.
The normal cost is a level percent of payroll cost, which, along with the member contributions, will
pay for projected benefits at retirement for each plan participant. The actuarial accrued liability is
that portion of the present value of projected benefits that will not be paid by future normal employer
costs or member contributions. The difference between this liability and the funds accumulated as of
the same date is the unfunded actuarial accrued liability. The allowance for administrative costs is
based upon the actual administrative expenses of the plans.
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an
actuarial experience study performed in 2016. ERFC valuation date June 30, 2020 based on
experience study from January 1, 2010 to December 31, 2014.
Target Allocation and Rate of Investment Return
The target asset allocation of the System’s investment portfolio has a significant impact on the
investment returns expected to be experienced by the System. The table on the next page shows the
target allocation and long term expected real rate of return based on the Board’s current policy along
with the capital market assumptions compiled by System’s investment staff.
BASIC FINANCIAL STATEMENTS
92 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Long-Term Expected Real Rate of Return/Target Allocation*
Asset C lass ERS* PORS* URS*
US Equity 5.6% / 16% 5.6% / 12% 5.6% / 10%
US Small C ap Equity 7.8% / 4% 7.8% / 5% 7.8% / 3%
International Dev. 5.6% / 7% 5.6% / 10% 5.6% / 9%
International EM 10.1% / 3% 10.1% / 3% 10.1% / 5%
Private Equities 14.4% / 2% 14.4% / 2% 14.4% / 3%
C ore Bonds 2.1% / 25% 2.1% / 13% 2.1% / 12%
High Yield 4.6% / 10% 4.6% / 17% 4.6% / 5%
Global Bonds 0.9% / 5% 0.9% / - 0.9% / 5%
Emerging Markets Debt 4.8% / 2% 4.8% / - 4.8% / 3%
Real Estate 6.8% / 8% 6.8% / 5% 6.8% / 8%
Absolute Return 11.3% / 20% 11.3% / 15% 11.3% / 18%
Risk Parity 6.5% / 15% 6.5% / 30% 6.5% / 20%
C ommodities 5.9% / 5% 5.9% / - 5.9% / 4%
C ash 1.0% / 3% 1.0% / 1% 1.0% / 5%
* Target to tal may exceed 100% due to futures and o ther derivatives
L/T Expected
RRR
Target
Allocation
Domestic Large C ap Equity 6.8% 16.5%
Domestic Small C ap Equity 6.9% 6.5%
International Equity 7.4% 14.0%
Emerging International Equity 8.5% -
Global Real Estate Investment Trusts 7.3% 4.0%
Real Estate (C ore) 5.8% 9.0%
C ore US Fixed Income 3.0% 24.0%
International Fixed Income - 3.0%
Emerging Market Debt 5.6% -
Multi-Asset C lass Strategies 6.3% 11.0%
Hedge Funds 7.0% -
Absolute Return - 3.0%
Private C redit 8.7% 4.0%
Private Equity 10.2% 5.0%
ERFC
Asset C lass
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 93
The projection of cash flows used to determine the discount rate assumed that plan member
contributions will be made at the current contribution rate and that County contributions will be made
at rates equal to the difference between actuarially determined contribution rates and the member rate.
Based on those assumptions, 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 TPL. The TPL and NPL resulting from the plans fiduciary net position are
as follows:
ERS PORS
Total pension liability 5,961,066,083$ 1,851,586,671$
Pension plan's fiduciary net position (4,142,063,209) (1,400,564,931)
Net pension liability 1,819,002,874$ 451,021,740$
Plan fiduciary net position as a
percentage of the total pension liability 69.5% 75.6%
URS ERFC
Total pension liability 2,294,056,800$ 3,543,956,246$
Pension plan's fiduciary net position (1,762,102,370) (2,593,383,175)
Net pension liability 531,954,430$ 950,573,071$
Plan fiduciary net position as a
percentage of the total pension liability 76.8% 73.2%
Items that have resulted in a change in the NPL for the current reporting period are as follows:
Total
Pension
Liability ( a)
Plan Fiduciary
Net Position ( b )
Net Pension
Liability ( a- b )
13,187,868$ 9,920,486 3,267,382
Service cost 272,411 - 272,411
Interest 946,549 - 946,549
Differences between expected and
actual experience (30,567) - (30,567)
Benefit payments, including
refunds of member contributions (725,595) (725,595) -
C ontributions - employer - 460,196 (460,196)
C ontributions - member - 112,803 (112,803)
Net investment income - 138,399 (138,399)
Administrative expense - (8,175) 8,175
Net changes 462,798 (22,372) 485,170
13,650,666$ 9,898,114 3,752,552 Balances 6/30/2021
Increases (Decreases)
in (000)
Balances 6/30/2020
C hanges for year:
BASIC FINANCIAL STATEMENTS
94 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Presented below are those items as they relate to the individual plans:
ERS PORS URS ERFC Total
Total Pension Liability
Service cost 103,313$ 32,944 43,435 92,719 272,411
Interest 415,149 128,461 159,360 243,579 946,549 Differences between expected and actual
experience (5,461) (5,785) (6,625) (12,696) (30,567)
Benefit payments, including refunds of member
contributions (343,616) (84,449) (111,543) (185,987) (725,595)
Net change in total pension liability 169,385 71,171 84,627 137,615 462,798
Total pension liability - 6/30/2020 5,791,681 1,780,416 2,209,430 3,406,341 13,187,868
Total pension liability - 6/30/2021 5,961,066$ 1,851,587 2,294,057 3,543,956 13,650,666
Plan Fiduciary Net Position
C ontributions - employer 234,743$ 50,781 69,931 104,741 460,196
C ontributions - member 40,327 10,570 12,810 49,096 112,803
Net investment income 111,442 (59,355) (22,161) 108,473 138,399 Benefit payments, including refunds of member
contributions (343,616) (84,449) (111,543) (185,987) (725,595)
Administrative expense (2,471) (656) (667) (4,381) (8,175)
Net change in plan fiduciary net position 40,425 (83,109) (51,630) 71,942 (22,372)
Plan fiduciary net position - 6/30/2020 4,101,638 1,483,674 1,813,733 2,521,441 9,920,486
Plan fiduciary net position -6/30/2021 4,142,063$ 1,400,565 1,762,103 2,593,383 9,898,114
Net pension liability - 6/30/2021 1,819,003$ 451,022 531,954 950,573 3,752,552
Dollar amounts in (000)
Changes in the discount rate affect the measurement of the TPL. The discount rate does not affect the
measurement of assets; hence the percentage change in the NPL can be very significant for a
relatively small change in the discount rate. To illustrate this, the tables reflect the impact of a one
percent increase or decrease of the discount rate would have on the NPL for each of the plans:
Sensitivity of Net Pension Liability to Changes in Discount Rate - ERS
1% Decrease C urrent Discount
Rate 1% Increase
6.25% 7.25% 8.25%
Total pension liability $ 6,668,774,136 $ 5,961,066,083 $ 5,367,950,742
Plan fiduciary net position (4,142,063,209) (4,142,063,209) (4,142,063,209)
Net pension liability $ 2,526,710,927 $ 1,819,002,874 $ 1,225,887,533
Plan fiduciary net position as a
percentage of the total pension
liability
62.1% 69.5% 77.2%
Sensitivity of Net Pension Liability to Changes in Discount Rate - PORS
1% Decrease C urrent Discount
Rate 1% Increase
6.25% 7.25% 8.25%
Total pension liability $ 2,107,208,724 $ 1,851,586,671 $ 1,642,487,091
Plan fiduciary net position (1,400,564,931) (1,400,564,931) (1,400,564,931)
Net pension liability $ 706,643,793 $ 451,021,740 $ 241,922,160
Plan fiduciary net position as a
percentage of the total pension
liability
66.5% 75.6% 85.3%
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 95
Sensitivity of Net Pension Liability to Changes in Discount Rate - URS
1% Decrease C urrent Discount
Rate 1% Increase
6.25% 7.25% 8.25%
Total pension liability $ 2,593,681,561 $ 2,294,056,800 $ 2,046,065,439
Plan fiduciary net position (1,762,102,370) (1,762,102,370) (1,762,102,370)
Net pension liability $ 831,579,191 $ 531,954,430 $ 283,963,069
Plan fiduciary net position as a
percentage of the total pension
liability
67.9% 76.8% 86.1%
Sensitivity of Net Pension Liability to Changes in Discount Rate - ERFC
1% Decrease C urrent Discount
Rate 1% Increase
6.25% 7.25% 8.25%
Total pension liability $ 3,978,287,451 $ 3,543,956,246 $ 3,101,620,138
Plan fiduciary net position (2,593,383,175) (2,593,383,175) (2,593,383,175)
Net pension liability $ 1,384,904,276 $ 950,573,071 $ 508,236,963
Plan fiduciary net position as a
percentage of the total pension
liability
65.2% 73.2% 83.6%
5. Plan Membership
As of the measurement date(s), membership in the reporting entity’s plans consisted of the following:
C omponent Unit -
Public Schools
ERS PORS URS ERFC
Retirees and beneficiaries receiving benefits 9,824 1,202 1,462 12,842
Terminated employees entitled to, but not yet receiving, benefits 2,349 70 98 5,415
DROP participants 785 74 128 N/A
Active plan members 14,204 1,353 1,941 22,360
Total number of plan members 27,162 2,699 3,629 40,617
Primary Government
6. Pension Expense, Deferred Outflows and Deferred Inflows of Resources, Net Pension Liability, and Component Allocation
The reported deferred outflows and inflows of resources and recognized pension expense associated
with ERS, PORS, URS, and ERFC is presented on the following page:
BASIC FINANCIAL STATEMENTS
96 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience 49,147,581$ 21,745,391 4,537,085$ 20,577,919
C hanges of assumptions 11,428,893 - 2,827,257 -
Net difference between projected and actual
earnings on pension plan investments 172,863,321 - 148,533,568 -
C ontributions subsequent to the
measurement date 227,846,281 - 50,348,130 -
Total 461,286,076$ 21,745,391 206,246,040$ 20,577,919
Pension Expense Recognized 2021 311,339,079$ 91,683,409$
Net Pension Liability June 30, 2021 1,819,002,874$ 451,021,740$
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience 4,166,033$ 27,435,164 $ 33,994,254 14,658,210
C hanges of assumptions 5,851,259 - 20,364,115 -
Net difference between projected and actual
earnings on pension plan investments 135,329,221 - 64,123,964 -
C ontributions subsequent to the
measurement date 69,464,042 - 104,784,310 -
Total 214,810,555$ 27,435,164 223,266,643$ 14,658,210
Pension Expense Recognized 2021 107,319,013$ 158,845,068$
Net Pension Liability June 30, 2021 531,954,430$ 950,573,071$
ERS PORS
URS ERFC
Deferred outflows associated with contributions made subsequent to the measurement date will be
recognized as a reduction to the net pension liability in 2022. The remaining deferred outflows and
inflows will impact pension expense in subsequent years as follows:
Year ended June 30:
Measurement Date June 30 of prior year
ERS PORS URS ERFC
2022 69,301,786$ 30,644,556 22,397,948 16,276,316
2023 57,502,796 37,235,949 31,398,281 35,387,724
2024 49,302,536 37,479,130 38,861,353 34,430,540
2025 35,587,286 30,924,461 28,280,346 17,796,480
2026 - (964,105) (2,080,096) 1,253,108
Thereafter - - (946,483) (1,320,045)
Total 211,694,404$ 135,319,991 117,911,349 103,824,123
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 97
ERS balances have been allocated between the Primary Government and discretely presented
component units as follows:
Total
Primary
Government FC PS EDA FC RHA FC PA
Total pension liability 5,961,066$ 4,105,398 1,545,824 22,165 95,895 191,784
Pension plan's fiduciary net position (4,142,063) (2,852,647) (1,074,120) (15,401) (66,633) (133,262)
Net pension liability 1,819,003$ 1,252,751 471,704 6,764 29,262 58,522
Deferred outflows:
C ontributions after
measurement date 227,846$ 158,705 57,305 960 3,739 7,137
Investment return 172,863 119,051 44,827 643 2,781 5,561
C hanges in proportion 20,797 19,648 - 94 821 234
Experience 49,148 33,848 12,745 183 791 1,581
C hanges of assumptions 11,429 7,871 2,964 42 184 368
Total deferred outflows (ERS) 482,083$ 339,123 117,841 1,922 8,316 14,881
Deferred inflows:
Experience 21,745$ 14,976 5,639 81 350 699
C hanges in proportion 20,797 601 14,991 1,041 1,191 2,973
Total deferred inflows (ERS) 42,542$ 15,577 20,630 1,122 1,541 3,672
Pension expense 311,339$ 220,947 75,276 902 4,965 9,249
Dollar amounts in (000)
7. Virginia Retirement System (VRS)
Plan Description
FCPS contributes to VRS on behalf of its covered professional employees. VRS is a cost-sharing,
multiple-employer retirement system, which administers two defined benefit plans and a hybrid plan
that combines the features of a defined benefit plan and a defined contribution plan. These plans are
administered by the Commonwealth and provide coverage for Commonwealth employees, public
school board employees, employees of participating political subdivisions, and other qualifying
employees. All full-time, salaried, permanent employees of VRS-participating employers are
automatically covered under VRS. All employees hired after January 1, 2014 are automatically
enrolled in the Hybrid Plan. Contributions made by members and participating VRS employers are
invested to provide future retirement and disability benefits, annual cost of living adjustments, and
death benefits to plan members and beneficiaries.
Benefit Provisions and Requirements
Benefit provisions are established and governed by Section 51.1 of the Code. Changes to the Code
can be made only by an act of the Virginia General Assembly. All benefits vest at five years of
creditable service. Benefits under the Defined Contribution component of the Hybrid Plan are always
100 percent vested. To be eligible for unreduced retirement benefits, an individual must meet the
following criteria: (a) attain the age of 65 with five years of service or age 50 with 30 years of service
for Plan 1, (b) for Plan 2 and the Defined Benefit component of the Hybrid Plan, attain normal social
security retirement age with five years of service or combination of age and service equals 90 or (c)
for the Defined Contribution component of the Hybrid Plan, terminate employment.
BASIC FINANCIAL STATEMENTS
98 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
To be eligible for reduced retirement benefits, an individual must meet the following criteria: (a)
attain the age of 55 with five years of service or age 50 with 10 years of service for Plan 1, (b) for
Plan 2 and the Defined Benefit component of the Hybrid Plan, attain the age of 60 with five years of
service or (c) for the Defined Contribution component of the Hybrid Plan, terminate employment.
Annual retirement benefits are payable monthly for life in an amount equal to (a) 1.7 percent of
eligible members’ average final compensation for each year of credited service under Plan 1, (b) 1.65
percent of eligible members’ average final compensation for each year of creditable service on or
after January 1, 2013 and 1.7 percent on creditable service before January 1, 2013 for Plan 2, or (c)
1.0 percent of eligible members’ average final compensation for each year of creditable service for
the Defined Benefit component of the Hybrid Plan. The health insurance credit provides retirees who
have 15 or more years of creditable service with reimbursement to assist with the cost of health
insurance premiums. The credit is a dollar amount set by the General Assembly for each year of
service.
Funding Policy
The contribution requirement for active employees is governed by Section 51.1-145 of the Code, as
amended, but may be impacted as a result of funding provided to school divisions by the Virginia
General Assembly. Employees are required to contribute 5.0 percent of their compensation toward
their retirement. Each school division’s contractually required contribution rate for the year ended
June 30, 2021 was 16.62 percent of covered employee compensation. This rate was based on an
actuarially determined rate from an actuarial valuation as of June 30, 2019. The actuarially
determined rate, when combined with employee contributions, was expected to finance the costs of
benefits earned by employee during the year, with an additional amount to finance any unfunded
accrued liability. Based on the provisions of Section 51.1-145 of the Code, as amended, the
contributions were funded at 100.00 percent of the actuarial rate for the year ended June 30, 2021.
Employer contributions to the pension plan were $270,303,058 and $255,030,396 for the years ended
June 30, 2021 and June 30, 2020, respectively.
Actuarial Methods and Assumptions
The total pension liability for VRS was based on an actuarial valuation as of June 30, 2019, using the
entry age normal actuarial cost method, applied to all periods included in the measurement, and rolled
forward to the measurement date of June 30, 2020. The assumptions used were as follows:
Actuarial Assumptions
Inflation 2.50%
Salary increases, including inflation 3.50% to 5.95%
Investment rate of return, net of pension plan
investment expense, including inflation (a) 6.75%
(a) A dministrative expenses as a percent o f the market value o f assets fo r the last experience study were fo und to be appro ximately
0.06% o f the market assets fo r all o f the VRS plans. This wo uld pro vide an assumed investment return rate fo r GA A P purpo ses o f
slightly mo re than the assumed 6.75%. Ho wever, since the difference was minimal, and a mo re co nservative 6.75% investment return
assumptio n pro vided a pro jected plan net po sitio n that exceeded the pro jected benefit payments, the lo ng-term expected rate o f return
o n investments was assumed to be 6.75% to simplify preparatio n o f pensio n liabilities.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 99
Pre-Retirement Post-Retirement Post-Disablement
RP-2014 White C ollar Employee
Rates to age 80, White C ollar
Healthy Annuitant Rates at ages
81 and older projected with Scale
BB to 2020
RP-2014 White C ollar Employee
Rates to age 49, White C ollar
Healthy Annuitant Rates at ages
50 and older projected with Scale
BB to 2020; males 1% increase
compounded from ages 70 to 90;
females set back 3 years with
1.5% increase compounded from
ages 65 to 75 and 2.0% increase
compounded from ages 75 to 90
RP-2014 Disability Mortality
Rates projected with Scale BB to
2020; 115% of rates for males
and females
Mortality Rates
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an
actuarial experience study for the four-year period from July 1, 2012 through June 30, 2016. Changes
to the actuarial assumptions as a result of the experience study are presented as follows:
Mortality Rates (Pre-retirement, post-
retirement healthy, and disabled)
Update to a more current mortality table-RP-2014 projected to 2020
Retirement Rates Lowered rates at older ages and changed final retirement from 70 to 75
Withdrawal Rates Adjusted rates to better fit experience at each year age and service
through 9 years of service
Disability Rates Adjusted rates to better match experience
Salary Scale No change
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2021, FCPS reported a liability of $2,693,015,856 for its proportionate share of the net
pension liability. The net pension liability was measured as of June 30, 2020 and the total pension
liability used to calculate the net pension liability was determined based on an actuarial valuation as
of June 30, 2018 rolled forward to the measurement date of June 30, 2019. The FCPS’ proportion of
the net pension liability was based on FCPS’ actuarially determined employer contributions to the
pension plan for the year ended June 30, 2020 relative to the total of the actuarially determined
employer contributions for all participating employers. At June 30, 2020, FCPS’s proportion was
18.51 percent, as compared to 18.47 percent at June 30, 2019.
For the year ended June 30, 2021, FCPS recognized pension expense of $315,958,366. Since there
was a change in proportionate share between measurement dates, a portion of the pension expense
was related to deferred amounts from changes in proportion and from differences between actual
employer contributions and the proportionate share of employer contributions. At June 30, 2021,
FCPS reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
BASIC FINANCIAL STATEMENTS
100 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Differences between expected and actual experience -$ 157,852,241$
Net difference between projected and actual earnings
on pension plan investments 204,833,684 -
Change of assumptions 183,832,106 -
Changes in proportion and differences between
contributions and proportionate share of contributions 37,288,238 -
Contributions subsequent to the measurement date 270,303,058 -
Total 696,257,086$ 157,852,241$
A total of $270,303,058 reported as deferred outflows of
resources related to pensions resulting from FCPS contributions
subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended June 30,
2022. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be
recognized in pension expense as shown to the right:
The long term expected rate of return on VRS investments was
determined using a log-normal distribution analysis in which best-
estimate ranges of expected future real rates of return (expected returns, net of VRS 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. The target asset allocation and
best estimate of arithmetic real rates of return for each major asset class are summarized in the
following table:
Asset C lass (Strategy)
Target
Allocation
Arithmetic
Long-Term
Expected
Rate of
Return
Weighted
Average Long-
Term
Expected Rate
of Return
Public Equity 34.00 % 4.65 % 1.58 %
Fixed Income 15.00 0.46 0.07
C redit Strategies 14.00 5.38 0.75
Real Assets 14.00 5.01 0.70
Private Equity 14.00 8.34 1.17
MAPS-Kulti-Asset Public Strategies 6.00 3.04 0.18
PIP-Private Investment Partnership 3.00 6.49 0.19
Total 100.00 % 4.64 %
Inflation 2.50
Expected arithmetic nominal return (a)
7.14 %
( a) The above alloc ation provides a one- year return of 7.14 perc ent. However, one- year returns do not take
into ac c ount the volatility present in eac h of the asset c lasses. In setting the long- term expec ted return for the
system, stoc hastic projec tions are employed to model future returns under various ec onomic c onditions. The
results provide a range of returns over various time periods that ultimately provide a median return of 7.11
perc ent, inc luding expec ted inflation of 2.50 perc ent.
The discount rate used to measure the total pension liability was 6.75 percent. The projection of cash
flows used to determine the discount rate assumed that member contributions will be made per the
VRS Statutes and the employer contributions will be made in accordance with the VRS funding
Year ended June 30:
2022 16,450,861$
2023 82,316,302
2024 98,630,012
2025 73,667,850
2026 (2,963,238)
268,101,787$
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 101
policy at rates equal to the difference between actuarially determined contribution rates adopted by
the VRS Board of Trustees and the member rate. Through the fiscal year ending June 30, 2020, the
rate contributed by FCPS for VRS will be subject to the portion of the VRS Board-certified rates that
are funded by the Virginia General Assembly. From July 1, 2020 on, school divisions are assumed to
contribute 100.0 percent of the actuarially determined contribution rates. Based on those assumptions,
VRS’ fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. Therefore, the long-term expected rate of return
was applied to all periods of projected benefit payments to determine the total pension liability.
The following presents FCPS’ proportionate share of the net pension liability using the discount rate
of 6.75 percent, as well as what FCPS’ proportionate share of the net pension liability would be if it
were calculated using a discount rate that is one percentage point lower (5.75) percent or one
percentage point higher (7.75) percent than the current rate:
Sensitivity of Net Pension Liability to Changes in Discount Rate
1% Decrease Current Discount
Rate 1% Increase
5.75% 6.75% 7.75%
FC PS' proportionate share of the
VRS net pension liability 3,951,259,079$ 2,693,015,856$ 1,652,289,648$
Plan Fiduciary Net Position
Detailed information about the VRS net position is available in the separately issued VRS 2020
Annual Comprehensive Financial Report (ACFR). A copy of the 2020 VRS ACFR may be obtained
by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500. It
is also available online through the VRS website. VRS Report
Reporting Entity Pension Expense
The aggregate amount of pension expense for all plans (ERS, PORS, URS, ERFC, and VRS) for the
period associated with net pension liabilities totaled $985,144,935 for fiscal year 2021.
H. OTHER POSTEMPLOYMENT BENEFITS
1. General Information about the OPEB Plan
The Fairfax County OPEB Plan (the Plan) is a single-employer defined benefit plan administered by
Fairfax County. The Plan provides the opportunity to continue participation in medical/dental,
vision, and life insurance benefits for eligible retirees and their spouses. The plan benefits
correspond with benefits available to active employees. The benefit provisions are established and
may be amended by the Board. Fiduciary oversight is provided by the members of the Deferred
Compensation Board. The members of the Deferred Compensation Board are the CFO, Director of
Finance, Director of Human Resources, Director of Management and Budget, and the Executive
Director of the Retirement Agency. The Plan does not issue a stand-alone financial report.
In order to participate in the Plan, an employee must meet retirement criteria for either ERS, PORS,
or URS (Note G). The retiree must have the applicable benefit(s) in place as an active employee and
BASIC FINANCIAL STATEMENTS
102 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
must maintain continuous participation in the benefit plan into retirement. Upon retirement, the
County no longer contributes to the premium payments and the participant becomes responsible for
100 percent of applicable premiums less any applicable subsidies.
Beginning in fiscal year 2006, the amount of monthly medical subsidy provided by the County is
based on years of service and ranges from $30 per month to $220 per month. Employees who
retired prior to July 1, 2003, are eligible for the greater of the amount based on the current subsidy
structure or the amount calculated based on the subsidy structure in place prior to July 2003. In
addition, the Board has established a program to subsidize the continuation of term life insurance at
reduced coverage amounts for retirees. Retirees generally pay for 50 percent of their coverage
amounts at age-banded premium rates, with the County incurring the balance of the cost. In order to
receive these subsidies, retirees must be 55 or older and have a minimum of five years of service
credit. If participation in any of the benefit areas is discontinued, eligibility is lost and a retiree may
not re-enroll into the Plan. Consequently, all inactive employees are considered to be receiving
benefits.
Beginning in fiscal year 2018, required disclosures for the County OPEB liability and OPEB plan’s
fiduciary net position will be made simultaneously. Participant data for current fiscal year and prior
fiscal year is as follows:
Membership FY 2020 FY 2021
Medical Members
Number of active members 13,579 15,490
Average age 44 45
Average service 11 11
Number of inactive members
Retirees and spouses 5,437 5,667
Average age 67 67
Life Insurance Members
Number of active members 13,579 15,490
Average age 44 45
Average service 11 11
Number of inactive members
Retirees and spouses 5,927 6,086
Average age 68 69
Contributions to the Plan are made by appropriation from the Board based on their commitment to
fund an actuarially determined amount. The contributions for fiscal years 2020 and 2021 were $19.7
million and $18.1 million, respectively. Plan members are not required to contribute.
2. County Reporting of OPEB
Net OPEB Liability for the County
The County’s net OPEB liability was measured as of June 30, 2020. The components of the net
OPEB liability for the County are presented on the following page:
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 103
Total
Primary
Government EDA FCRHA FCPA
Total OPEB Liability 348,205,749$ 326,616,993 940,155 5,815,036 14,833,565
Plan's Fiduciary Net Position (330,764,357) (310,256,966) (893,064) (5,523,765) (14,090,562)
Net OPEB Liability 17,441,392$ 16,360,027 47,091 291,271 743,003
Assumptions
For the County, the total OPEB Liability was determined by an actuarial valuation as of July 1,
2019, rolled forward to June 30, 2020, using the following actuarial assumptions, found below:
Actuarial cost method Entry age normal
Asset valuation method Market value of assets
Investment rate of return 7.00%, net of OPEB plan
investment expense,
including inflation.
Retirement age Varies by age and pension
plan.
Mortality Pub-2010, "General" classification, Employees
& Healthy Annuitant mortality table, projected
using scale MP-2019, sex-distinct.
Disabled mortality table Pub-2010, "General"
classification, Disabled Retirement mortality
table, projected using scale MP-2019, sex distinct.
Healthcare cost trend rate 7.6% - 10.6%, decreasing to 4.3%
The actuarial assumptions used in the valuation were based on the results of an actuarial experience
for the period July 1, 2010 to June 30, 2015.
Discount rate
The discount rate used to measure the total OPEB liability was 7.00 percent. The projection of cash
flows used to determine the discount rate assumed Plan member contributions will be made at the
current contribution rate and that County contributions will be made at rates equal to the actuarially
determined contribution rates. For this purpose, only employer contributions that are intended to
fund benefits of current Plan members and their beneficiaries are included. Projected County
contributions that are intended to fund the service costs of future Plan members and their
beneficiaries, as well as projected contributions from future Plan members, are not included. Based
on these assumptions, the OPEB plan’s fiduciary net position was projected to be available to make
all projected future OPEB payments for current Plan members. Therefore, the long-term expected
rate of return on OPEB plan investments was applied to all periods of projected benefit payments to
determine the total OPEB liability.
BASIC FINANCIAL STATEMENTS
104 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Changes in the Net OPEB Liability
Items that have resulted in a change in the OPEB liability for the current reporting period are as
follows:
Total OPEB
Liability (a)
Plan Fiduciary Net
Position (b)
Net OPEB Liability
(a-b)
470,033$ 324,840 145,193
Service cost 15,608 - 15,608
Interest 33,195 - 33,195
Changes in benefit terms - - -
Difference between expected and actual experience (1,518) - (1,518)
Changes of assumptions (145,858) - (145,858)
(23,254) (23,254) -
Contributions - employer - 19,677 (19,677)
Net investment income - 9,633 (9,633)
Administrative expense - (131) 131
Net changes (121,827) 5,925 (127,752)
Balances 6/30/2021 348,206$ 330,765 17,441
Dollar amounts in (000)
Balances 6/30/2020
Changes for year:
Benefit payments, including refunds of members
refunds of member contributions
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 105
Presented below are those items as they relate to the individual plans:
Sensitivity Analysis
The following represents the County’s net OPEB (asset) liability using the 7 percent discount rate, as
well as what the (asset) liability would be if the discount rate were decreased or increased by 1 percent.
Primary
Government EDA FRCHA FCPA Total
Total OPEB Liability
Service cost 14,640$ 42 261 665 15,608
Interest 31,137 90 554 1,414 33,195
Difference between expected and actual experience (1,095) (4) (119) (300) (1,518)
Changes in assumptions (136,815) (394) (2,436) (6,213) (145,858)
(21,812) (63) (388) (991) (23,254)
Net change in total OPEB liability (113,945) (329) (2,128) (5,425) (121,827)
Total OPEB Liability - 6/30/2020 440,562 1,269 7,943 20,259 470,033
Total OPEB Liability - 6/30/2021 326,617$ 940 5,815 14,834 348,206
Plan Fiduciary Net Position
Contributions - employer 18,456$ 53 329 839 19,677
Net investment income 9,263 26 96 248 9,633
(21,812) (63) (388) (991) (23,254)
Administrative expense (123) - (2) (6) (131)
Net change in plan fiduciary net position 5,784 16 35 90 5,925
Plan Fiduciary Net Position - 6/30/2020 304,473 877 5,489 14,001 324,840
Plan Fiduciary Net Position - 6/30/2021 310,257$ 893 5,524 14,091 330,765
Net OPEB Liability - 6/30/2021 16,360$ 47 291 743 17,441
Dollar amounts in (000)
Benefit payments, including refunds of member
contributions
Benefit payments, including refunds of member
contributions
1% Decrease Current Rate 1% Increase
(6%) (7%) (8%)
Total OPEB Liability 402,947,976$ 348,205,749 304,572,959
Plan Fiduciary Net Position (330,764,357) (330,764,357) (330,764,357)
Net OPEB (Asset) Liability 72,183,619$ 17,441,392 (26,191,398)
1% Decrease Current Rate 1% Increase
Total OPEB Liability (6%) (7%) (8%)
Primary Government 377,965,201$ 326,616,993 285,689,436
EDA 1,087,960 940,155 822,347
FCRHA 6,729,231 5,815,036 5,086,368
FCPA 17,165,584 14,833,565 12,974,808
Total OPEB Liability 402,947,976$ 348,205,749 304,572,959
1% Decrease Current Rate 1% Increase
Plan Fiduciary Net Position (6%) (7%) (8%)
Primary Government (310,256,966)$ (310,256,966) (310,256,966)
EDA (893,064) (893,064) (893,064)
FCRHA (5,523,765) (5,523,765) (5,523,765)
FCPA (14,090,562) (14,090,562) (14,090,562)
Total Plan Fiduciary Net Position (330,764,357)$ (330,764,357) (330,764,357)
1% Decrease Current Rate 1% Increase
Net OPEB Liability (6%) (7%) (8%)
Primary Government 67,708,235$ 16,360,027 (24,567,530)
EDA 194,896 47,091 (70,717)
FCRHA 1,205,466 291,271 (437,397)
FCPA 3,075,022 743,003 (1,115,754)
Total Net OPEB (Asset) Liability 72,183,619$ 17,441,392 (26,191,398)
BASIC FINANCIAL STATEMENTS
106 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The following represents the County’s net OPEB (asset) liability calculated using the healthcare trend
rates (7.60 percent to 10.60 percent, decreasing to 4.30 percent), as well as the impacts of calculating
the rates at one percentage point lower (6.60 percent to 9.60 percent, decreasing to 3.30 percent) or
one percentage point higher (8.60 percent to 11.60 percent, decreasing to 5.30 percent):
1% Decrease Trend Rate 1% Increase
(Varied decreasing
to 3.3%)
(Varied decreasing
to 4.3%)
(Varied decreasing
to 5.3%)
Total OPEB Liability 294,389,466$ 348,205,749 418,549,207
Plan Fiduciary Net Position (330,764,357) (330,764,357) (330,764,357)
Net OPEB (Asset) Liability (36,374,891)$ 17,441,392 87,784,850
1% Decrease Trend Rate 1% Increase
Total OPEB Liability
(Varied decreasing
to 3.3%)
(Varied decreasing
to 4.3%)
(Varied decreasing
to 5.3%)
Primary Government 276,137,319$ 326,616,993 392,599,156
EDA 794,852 940,155 1,130,083
FCRHA 4,916,304 5,815,036 6,989,772
FCPA 12,540,991 14,833,565 17,830,196
Total OPEB Liability 294,389,466$ 348,205,749 418,549,207
1% Decrease Trend Rate 1% Increase
Plan Fiduciary Net Position
(Varied decreasing
to 3.3%)
(Varied decreasing
to 4.3%)
(Varied decreasing
to 5.3%)
Primary Government (310,256,966)$ (310,256,966) (310,256,966)
EDA (893,064) (893,064) (893,064)
FCRHA (5,523,765) (5,523,765) (5,523,765)
FCPA (14,090,562) (14,090,562) (14,090,562)
Total Plan Fiduciary Net Position (330,764,357)$ (330,764,357) (330,764,357)
1% Decrease Trend Rate 1% Increase
Net OPEB Liability
(Varied decreasing
to 3.3%)
(Varied decreasing
to 4.3%)
(Varied decreasing
to 5.3%)
Primary Government (34,119,647)$ 16,360,027 82,342,190
EDA (98,212) 47,091 237,019
FCRHA (607,461) 291,271 1,466,007
FCPA (1,549,571) 743,003 3,739,634
Total Net OPEB (Asset) Liability (36,374,891)$ 17,441,392 87,784,850
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 107
OPEB Expense, Deferred Outflows and Deferred Inflows of Resources, and Component
Allocation
For the year ended June 30, 2021, the County recognized OPEB expense of $20,028,043. Deferred
outflows and deferred inflows of resources related to OPEB have been allocated between the Primary
Government and discretely presented component units as follows:
Contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB
liability in the year ending June 30, 2022.
The other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year Ended June 30
2022 (6,294,361)$
2023 (3,582,032)
2024 (2,281,763)
2025 (2,860,975)
2026 (6,551,511)
Thereafter (27,537,161)
(49,107,803)$
Total
Primary
Government EDA FCRHA FCPA
Total OPEB Liability 348,206$ 326,617 940 5,815 14,834
Plan's Fiduciary Net Position (330,765) (310,257) (893) (5,524) (14,091)
Net OPEB Liability 17,441$ 16,360 47 291 743
Deferred Outflows:
Experience 14,921$ 13,996 40 249 636
Assumptions changes 71,472 67,040 193 1,194 3,045
Investment return 9,771 9,166 26 163 416
Contributions after measurement date 18,072 16,962 47 300 763
Change in proportion 319 55 - - 264
Total Deferred Outflows 114,555$ 107,219 306 1,906 5,124
Deferred Inflows:
Experience 7,677$ 7,201 21 128 327
Assumptions changes 137,596 129,065 371 2,298 5,862
Change in proportion 319 13 182 124 -
Total Deferred Inflows: 145,592$ 136,279 574 2,550 6,189
OPEB Expense 20,028$ 18,787 54 334 853
Dollar amounts in (000)
BASIC FINANCIAL STATEMENTS
108 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
3. OPEB Plan Reporting
The County has established a trust fund to account for the cost of OPEB. The financial information
for the fund is as follows:
Statement of Plan Net Position
ASSETS
Equity in pooled cash and temporary investments 2,848,791$
Contributions receivable 25,034
Accrued interest and dividends receivable 17,584
Investments, at fair value:
Investment in pooled funds 421,005,166
Total assets 423,896,575
DEFERRED OUTFLOWS OF RESOURCES
Total deferred outflows of resources -
LIABILITIES
Accounts payable and accrued liabilities 207
Total liabilities 207
DEFERRED INFLOW OF RESOURCES
Total deferred inflows of resources -
NET POSITON
Held in trust for pension/OPEB benefits 423,896,368$
COUNTY OF FAIRFAX, VIRGINIA
June 30, 2021
Statement of Changes in Plan Net Position
ADDITIONS
Contributions:
Employer 17,974,135$
Other 97,913
Total contributions 18,072,048
Investment income:
From investment activities:
Net appreciation in fair value of investments 98,714,550
Interest 5,872
Total income from investment activities 98,720,422
Less investment activities expenses:
Management fees 277,002
Other 500
Total investment activities expenses 277,502
Net income from investment activities 98,442,920
Net investment income 98,442,920
Total additions 116,514,968
DEDUCTIONS
Benefits 23,252,169
Administrative expenses 130,788
Total deductions 23,382,957
Net increase 93,132,011
Net position, July 1, 2020 330,764,357
Net position, June 30, 2021 423,896,368$
COUNTY OF FAIRFAX, VIRGINIA
For the fiscal year ended June 30, 2021
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 109
Net OPEB Liability for the Plan
The Plan’s net OPEB liability was measured as of June 30, 2021. The components of the net OPEB
asset for the Plan are as follows:
Total OPEB liability 381,809,735$
Plan fiduciary net position (market value of assets) (423,896,368)
Net OPEB asset (42,086,633)$
Plan fiduciary net position as a percentage of the
OPEB asset 111.02%
Assumptions
For the Plan, the total OPEB liability was determined by an actuarial valuation as of July 1, 2019,
rolled forward to June 30, 2020 using the following actuarial assumptions:
Actuarial cost method Entry age normal
Asset valuation method Market value of assets
Salary increases 3.00%
Investment rate of return 7.00%, net of OPEB plan
investment expense,
including inflation.
Retirement age Varies by age and pension
plan.
Mortality Pub-2010, "General" classification, Employees
& Healthy Annuitant mortality table, projected
using scale MP-2020, sex-distinct.
Disabled mortality table Pub-2010, "General"
classification, Disabled Retirement mortality
table, projected using scale MP-2020, sex distinct.
Healthcare cost trend rate 6.9% - 11.6%, decreasing to 4.5%
The actuarial assumptions used in the valuation were based on the results of an actuarial experience
study for the period of July 1, 2010, to June 30, 2015.
Investments
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which best estimate ranges of expected future real rates of return (expected returns,
net of OPEB plan investment expense and inflation) are developed for each 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 asset class and target allocations as of
June 30, 2021 are on the following page:
BASIC FINANCIAL STATEMENTS
110 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Asset Class
Long-Term
Expected Real Rate
of Return
Target Allocation
Domestic Equity (Large Cap) 6.30% 27.92%
Domestic Equity (Small Cap) 6.80% 11.61%
International Equity 7.00% 13.68%
Emerging Markets Equity 7.50% 5.59%
Long / Short Equity 6.40% 5.82%
Core US Fixed Income 2.50% 4.14%
Core Plus US Fixed Income 2.90% 14.47%
Absolute Return Fixed Income 2.00% 3.51%
Real Estate 5.50% 8.94%
Private Equity 8.70% 3.66%
Cash 1.90% 0.66%
There are no concentrations in any one organization that represent 5.00 percent or more of the
fiduciary net position in the Plan. For the year ended June 30, 2021, the annual money-weighted rate
of return on investments, net of investment expense, was 30.61 percent. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
The Plan’s funds are invested in domestic and international equity and fixed income funds through the
Virginia Pooled OPEB Trust Fund established as the investment vehicle for participating employers.
The County is not involved in the administration of these funds. Further information about the Virginia
Pooled OPEB Trust Fund sponsored by VML/VACo., including financial statements, can be obtained
by writing to VML/VACo Finance Program, 8 East Canal Street, Suite 100, Richmond, Virginia 23219.
Sensitivity Analysis
The following represents the OPEB plan’s net asset using the 7 percent discount rate, as well as what
the (asset) liability would be if the discount rate were decreased or increased by one percent.
Sensitivity of Net OPEB Liability to Changes in Discount Rate
1% Decrease Current Rate 1% Increase
6% 7% 8%
Total OPEB Liability 444,681,191$ 381,809,735 331,761,098
Plan Fiduciary Net Position (423,896,368) (423,896,368) (423,896,368)
Net OPEB (Asset) Liability 20,784,823$ (42,086,633) (92,135,270)
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 111
The following represents the OPEB plan’s net asset calculated using the healthcare trend rates (6.90
percent to 11.60 percent, decreasing to 4.50 percent), as well as the impacts of calculating the rates at
one percentage point lower (5.90 percent to 10.60 percent, decreasing to 3.50 percent) or one
percentage point higher (7.90 percent to 12.60 percent, decreasing to 5.50 percent):
Sensitivity of Net OPEB (Asset) Liability to Changes in Healthcare Cost Trend Rates
1% Decrease Trend Rate 1% Increase
(Varied
decreasing to
3.5%)
(Varied
decreasing to
4.5%)
(Varied
decreasing to
5.5%)
Total OPEB Liability 318,331,466$ 381,809,735 463,483,413
Plan Fiduciary Net Position (423,896,368) (423,896,368) (423,896,368)
Net OPEB (Asset) Liability (105,564,902)$ (42,086,633) 39,587,045
Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
At June 30, 2021, the County reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following resources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the measurement date 18,072,048$ -
Total 18,072,048$ -
Contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB
liability or addition to the net OPEB asset, as applicable, in the year ending June 30, 2022.
4. Public Schools OPEB Plan
Plan Description
The Fairfax County Public Schools OPEB Trust Fund is a single-employer defined benefit plan
administered by the Fairfax County Public Schools (Public Schools). Public Schools’ plan provides
health benefits to eligible retirees and their spouses. The plan benefits correspond with benefits
available to active employees. Benefit provisions are established and may be amended by the School
Board. Fiduciary oversight is provided by the members of the Local Finance Board for OPEB. The
Plan does not issue a stand-alone financial report.
Public School employees participate in the Public School OPEB Plan, the Virginia Retirement
System Teacher Health Insurance Credit (HIC) OPEB Plan, and the Virginia Retirement System
Group Life Insurance (GLI) OPEB Plan. In order to participate, an employee must meet retirement
criteria for either VRS, ERFC, or FCERS. Employees are eligible to continue health insurance
coverage after retirement, provided that retiring employees have health coverage in effect for at least
60 months when they stop working. Upon retirement Public Schools no longer contributes to the
premium payments and the participant becomes responsible for 100 percent of premiums less any
applicable subsidies.
A retiree and/or spouse who is at least 55 of years of age and participates in a Public Schools
administered health insurance plan will receive an explicit subsidy ranging from $15 to $175 per
BASIC FINANCIAL STATEMENTS
112 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
month, based on years of service and the retirement plan in which the retiree is covered. In addition,
Public Schools provides an implicit subsidy by allowing retirees to participate in the health insurance
plans at the group premium rates calculated on the entire universe of active and retired employees.
This subsidy occurs because, on an actuarial basis, the current and future claims of the retiree
participants are expected to result in higher per person costs to the insurance plans than will be the
experience for active employees.
For fiscal year 2021, required disclosures for the Public Schools OPEB liability and OPEB plan’s
fiduciary net position are made simultaneously. Participant data for current fiscal year and prior
fiscal year is as follows:
Membership FY 2020 FY 2021
Medical Members
Number of active members 19,878 20,309
Average age 46 46
Average service 11 11
Number of inactive members
Retirees and spouses 10,135 10,037
Average age 72 72
Life Insurance Members
Number of active members 4,457 4,705
Average age 53 52
Average service 11 12
Number of inactive members
Retirees and spouses 2,844 2,546
Average age 72 71
Contributions
Contributions to the Public School OPEB Trust Fund are determined and may be amended by the
School Board. The contributions are set at a minimum to satisfy the current year's projected pay-as-
you-go benefits costs. The School Board may provide additional amounts to prefund future costs.
Contributions to the Plan were $15,348,747 and $28,875,000 for the years ended June 30, 2021 and
June 30, 2020, respectively. The costs of administrating the plan are paid for by the Plan through the
use of investment income and employer contributions. The Public Schools’ annual OPEB cost, the
percentage of annual OPEB cost contributed to the plan, and the net OPEB asset for 2021 are as
follows on the next page:
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 113
Public Schools OPEB Plan Reporting:
COUNTY OF FAIRFAX, VIRGINIA
OPEB Trust Fund
Statement of Plan Net Position
June 30, 2021
C omponent Unit -
Public Schools
OPEB Trust Fund
37,200$
1,430,616
Investment in pooled funds 206,944,010
Total assets 208,411,826
37,200
Total liabilities 37,200
208,374,626$
NET POSITION
Held in trust for OPEB benefits
LIABILITIES
Accounts payable and accrued liabilities
ASSETS
Receivable, accounts
Receivable, securities sold
Statement of Changes in Net Position
C omponent Unit -
Public Schools
OPEB Trust Fund
15,348,747$
15,348,747
From investment activities:
Net increase in fair value of investments 47,506,802
Administrative expense (101,244)
Total income from investment activities 47,405,558
Total additions 62,754,305
DEDUCTIONS
10,348,747
Total deductions 10,348,747
52,405,558
155,969,068
208,374,626$
C ontributions:
C hange in net position
Net position, July 1, 2020
Net position, June 30, 2021
Employer
COUNTY OF FAIRFAX, VIRGINIA
OPEB Trust Fund
For the fiscal year ended June 30, 2021
ADDITIONS
Total contributions
Investment income:
Benefits payments /refunds
BASIC FINANCIAL STATEMENTS
114 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Net OPEB Liability
The Public Schools’ net OPEB liability was measured as of June 30, 2021 and the total OPEB
liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that
date. The components of the net OPEB liability for Fairfax County Public Schools is as follows:
Total OPEB liability 221,203,309$
Plan fiduciary net position (market value of assets) (208,374,626)
Net OPEB liability 12,828,683$
Plan fiduciary net position as a percentage of
the OPEB liability 94.20%
Actuarial Assumptions
Significant actuarial assumptions used in the valuation include:
Actuarial cost method Entry age normal
Asset valuation method Market value of assets
Salary increases 9.05%, trending down to 3.75%
Investment rate of return 7.00%, prior year rate was 7.00%,
net of OPEB plan investment expense,
including inflation.
Retirement age Varies by age and pension
plan.
Mortality
Active participants Pub-2010, "Teachers" C lassification, Employees Mortality
Table, projected using scale MP-2019, sex distinct
C urrent retirees Pub-2010, "Teachers" C lassification, Healthy Annuity
Mortality Table, projected using scale MP-2019, sex distinct
Surviving spouses Pub-2010, "Teachers" C lassification, Surviving Beneficiary
Mortality Table, projected using scale MP-2019, sex distinct
Disabled retirees Pub-2010, "Teachers" C lassification, Disabled Retirement
Mortality Table, projected using scale MP-2019, sex distinct
Healthcare cost trend rate 6.69% - 9.31%, decreasing to 4.50%
Discount rate
The discount rate used to measure the total OPEB liability was 7.0 percent. The projection of cash
flows used to determine the discount rate assumed that Public Schools contributions will be made at
rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB
plan’s fiduciary net position was projected to be available to make all projected OPEB payments for
current inactive and active employees / current plan members. Therefore, the long-term expected rate
of return on plan investments was applied to all periods of projected benefit payments to determine
the total OPEB liability.
Long-term Expected Rate of Return
The long-term expected rate of return on OPEB plan investments are determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 115
net of OPEB plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term 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 asset class included in the OPEB plan's
target asset allocation as of June 30, 2021, are summarized in the following table:
Asset C lass Long-Term Expected
Real Rate of Return Target Allocation
Domestic Equity (Large C ap) 6.3% 27.9%
Domestic Equity (Small C ap) 6.8% 11.6%
International Equity 7.0% 13.7%
Emerging Markets Equity 7.5% 5.6%
Long / Short Equity 6.4% 5.8%
C ore US Fixed Income 2.5% 4.1%
C ore Plus US Fixed Income 2.9% 14.5%
Absolute Return Fixed Income 2.0% 3.5%
Real Estate 5.5% 8.9%
Private Equity 8.7% 3.7%
C ash 1.9% 0.7%
C omponent Unit - Public Schools
There are no concentrations in any one organization that represent 5.0 percent or more of the
fiduciary net position in the plan. For the year ended June 30, 2021, the annual money-weighted rate
of return on investments, net of investment expense, was 30.09 percent. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing actual
invested. The Plan’s funds are invested in domestic and international equity and fixed income funds
through the Virginia Pooled OPEB Trust Fund established as the investment vehicle for participating
employers. The Public Schools is not involved in the administration of these funds. Further
information about the Virginia Pooled OPEB Trust Fund sponsored by VML/VACo., including
financial statements, can be obtained by writing to VML/VACo Finance Program, 8 East Canal
Street, Suite 100, Richmond, Virginia 23219.
Sensitivity Analysis
The following represents Public Schools Net OPEB liability calculated using the 7.0 percent discount
rate, as well as what the liability would be if the discount rate were calculated using a discount rate is
one percentage lower (6.0 percent) or one percentage higher (8.0 percent) than the current rate:
1% Decrease Current Rate 1% Increase
6% 7% 8%
Total OPEB liability 244,668,612$ 221,203,309 201,132,962
Plan fiduciary net position (208,374,626) (208,374,626) (208,374,626)
Net OPEB liability 36,293,986$ 12,828,683 (7,241,664)
BASIC FINANCIAL STATEMENTS
116 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The following represents Public Schools Net OPEB liability calculated using the healthcare trend
rates (6.69 percent to 9.31 percent, decreasing to 4.50 percent), as well as what the liability would be
it were calculated using healthcare trend rates at one percentage point lower (5.69 percent to 8.31
percent, decreasing to 3.50 percent) or one percentage point higher (7.69 percent to 10.31 percent,
decreasing to 5.50 percent) than the current healthcare trend rates:
1% Decrease Trend Rate 1% Increase
(Varied
decreasing to
3.5%)
(Varied
decreasing to
4.5%)
(Varied
decreasing to
5.5%)
Total OPEB liability 212,695,959$ 221,203,309 231,341,819
Plan fiduciary net position (208,374,626) (208,374,626) (208,374,626)
Net OPEB liability 4,321,333$ 12,828,683 22,967,193
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to OPEB
For the year ended June 30, 2021, the Public Schools recognized OPEB expense of $(16,033,255). At
June 30, 2021, the Public Schools reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following resources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between actual and expected
experience 55,844,075$ 19,631,759
C hange of assumptions - 83,042,891
24,831,484
Total 55,844,075$ 127,506,134
Net difference between expected and
actual earnings on OPEB plan investment -
Amounts recognized in the deferred outflows of resources and deferred inflows of resources related to
the Public Schools’ OPEB plan will be recognized in the OPEB plan expense as follows:
Year Ended June 30 Public Schools OPEB
2022 (24,247,377)$
2023 (23,751,102)
2024 (21,815,855)
2025 (4,900,886)
2026 4,640,041
Thereafter (1,586,880)
(71,662,059)$
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 117
Changes in the Net OPEB Liability
Total OPEB
Liability (a)
Plan
Fiduciary Net
Position (b)
Net OPEB
Liability (a-b)
Balances recognized at 6/30/2020 220,082$ 155,969 64,113
C hanges for the year:
Service cost 3,878 - 3,878
Interest cost 15,321 - 15,321
Differences between expected and actual experiences (6,731) - (6,731)
C hanges of assumptions (999) - (999)
Benefit payments (10,349) (10,349) -
C ontributions - employer - 15,349 (15,349)
Net investment income - 47,507 (47,507)
Administrative expense - (101) 101
Net changes 1,121 52,406 (51,285)
Balances recognized at 6/30/2021 221,203$ 208,375 12,828
(Dollar amounts in thousands)
Investments
The Public Schools invests the School OPEB Trust Fund's assets with the Virginia Pooled OPEB
Trust Fund (Pooled Trust) sponsored by the Virginia Association of Counties and the Virginia
Municipal League (VACo/VML). The Pooled Trust is an investment pooling vehicle created to allow
participating local governments, school divisions, and authorities in the State to accumulate and
invest assets to fund other postemployment benefits. Funds of participating jurisdictions are pooled
and invested in the name of the Pooled Trust. The Public Schools' respective shares in the Pooled
Trust are reported in the School OPEB Trust Fund's financial statements. Investment decisions are
made by the Board of Trustees (Trustees) of the Pooled Trust. The Trustees adopted an investment
policy to establish investment objectives, risk tolerance levels, and asset allocation parameters. The
investment objective is to maximize the total long-term rate of return with reasonable risk by seeking
capital appreciation and, secondarily, principal protection. The Pooled Trust is segregated and
managed as two distinct portfolios that are referred to as Portfolio I and Portfolio II. Portfolio I is
structured to achieve a compound annualized total expected rate of return over a market cycle,
including current income and capital appreciation, of 7.5 percent. Portfolio II is structured to achieve
an expected rate of return of 6.5 percent. The investment performance of each Portfolio is reviewed
quarterly and compared on a rolling three year basis and over other relevant time periods to the
following: (a) a composite benchmark comprised of each asset classes' market index benchmarks,
weighted by each Portfolio's long-term policy allocations, and (b) a peer group of other similar size
fund sponsors.
The Pooled Trust's assets are separately managed by professional investment managers or invested in
professionally managed investment vehicles. Each Portfolio is invested in a broadly diversified
manner by asset class, style and capitalization, which control volatility levels.
BASIC FINANCIAL STATEMENTS
118 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The asset allocation policies for the Portfolios are outlined in the table below:
Target
Percentages
of Total
Assets
Allocation
Range
Target
Percentages
of Total
Assets
Allocation
Range
Total Equity 59% 49% - 69% 32% 22% - 42%
Total Fixed Income 21% 16% - 26% 58% 48% - 68%
Total Real Assets 10% 5% - 15% 5% -% - 10%
Diversified Hedge Funds 10% 5% - 15% 5% -% - 10%
Portfolio I Portfolio II
The Pooled Trust and each Portfolio is monitored on a continual basis for consistency in investment
philosophy, return relative to objectives, and investment risk as measured by asset concentrations,
exposure to extreme economic conditions, and market volatility. Each Portfolio is reviewed by the
Trustees on a regular basis, but results are evaluated over longer time periods. The Trustees regularly
review each manager in order to confirm that the factors underlying the performance expectations
remain in place.
The Trustees meet a minimum of four times a year to review quarterly performance and asset
allocation. The investment policy is reviewed and updated at least annually.
On June 30, 2021, the School OPEB Trust Fund had the following investments in the Pooled Trust:
Quoted Prices
in Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Investments by Fair Value Level 6/30/2021 Level 1 Level 2 Level 3
Mutual funds 127,578,415$ - - 127,578,415
Stocks 79,365,595 - - 79,365,595
Total investment by fair value hierarchy level 206,944,010$ - - 206,944,010
Fair Value Measurements Using
The Pooled Trust uses the following methods when valuing investments.
Common Stocks, Mutual Funds, Exchange Traded Funds are publicly traded investments, and are
valued daily at the closing price reported on the active market on which the individual securities are
traded. The Pooled Trust invests in commingled accounts for which quoted prices are not available in
active markets for identical instruments. The Pooled Trust utilizes the NAV per share, as determined
by the respective investment manager, as the estimated fair value. Because quoted prices in active
markets for identical assets are not available, these prices are determined using observable market
information such as quotes from less active markets and/or quoted prices of securities with similar
characteristics.
Limited Partnership - Fund of Hedge Funds - This fund invests in a number of underlying hedge
funds which pursue various strategies. The strategies pursued by the underlying hedge funds include:
credit, equity, macro, multi-strategy, and relative value. The Pooled Trust's interest in the fund is
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 119
valued at the NAV of units of the collective partnership. The NAV is used as a practical expedient to
estimate fair value. This practical expedient would not be used if it is determined to be probable that
the Pooled Trust could not redeem its investment at the NAV per unit reported by the fund.
Participant purchases may occur monthly. Redemptions are available quarterly upon 70 days' notice.
Limited Partnership - Private Equity Fund - This fund invests in the equity of a variety of privately
held companies. The Pooled Trust's interest in the fund is valued at the Pooled Trust's ownership
interest in the collective limited partners' capital. The Pooled Trust's ownership interest in limited
partners' capital is used as a practical expedient to estimate fair value. This investment can never be
redeemed with the fund. Instead, the nature of investments of this type is that distributions are
received through the liquidation of the underlying assets of the fund. It is expected that the
underlying assets of the fund will be liquidated over a period of six to twelve years. It is probable that
the Pooled Trust's investment in this fund will be sold at an amount different from Pooled Trust's
ownership interest in limited partners' capital as of June 30, 2021. The effective date of this fund is
December 1, 2015, and it made its inaugural investment in the same month. Barring unusual
circumstances, the fund values recent investments in nonmarketable securities at acquisition cost.
The primary valuation methodology used to determine the fair value of the fund's investments at June
30, 2021, was recent arms-length financing rounds in which the partnership or other partnerships
managed by the general partner had participated. As of June 30, 2021, all underlying investments of
the fund were valued at cost.
Partnership - Real Estate Funds - One fund invests primarily in commercial, industrial, and multi-
family residential properties. The other invests in multi-family residential, hotels, industrial, and
office properties. Both funds are valued at the NAV of units of the collective partnership. The NAV
is used as a practical expedient to estimate fair value. This practical expedient would not be used if it
is determined to be probable that the Pooled Trust could not redeem its investment at the NAV per
unit reported by the fund. The real estate partnerships provide quarterly valuations to the Pooled
Trust. For one fund, individual properties are valued internally by the investment manager quarterly.
Internal valuations are completed using valuation techniques such as income capitalization, sales
comparison, and cost approaches. Independent external appraisals are generally completed annually
for the first fund, quarterly for the other. Redemptions are available quarterly upon 45 days' and 60
days' notice respectively.
The Pooled Trust does not have investments (other than U.S. government, agency, and guaranteed
obligations) in any one organization that represent 5 percent or more at market value of net position
held in trust for OPEB benefits. The Pooled Trust does not have investments assigned to any single
investment manager that represent 25 percent or more at market value of net position, or more than 20
percent of the fund at market value invested in one industry.
More extensive information about the Pooled Trust, including the classification of individual
investments and related risks, can be obtained by writing to VACo/VML Finance, 8 East Canal
Street, Suite 100, Richmond, Virginia 23219.
5. VRS Health Insurance Credit (HIC) OPEB
Plan Description
The HIC OPEB plan is a cost-sharing, multiple-employer plan administered by VRS. All full-time,
salaried permanent (professional) employees of public school divisions are automatically covered by
the HIC OPEB plan. The plan provides health insurance credit to eligible retirees. Members earn one
month of service credit toward the benefit for each month they are employed and for which their
employer pays contributions to VRS. The health insurance credit is a tax-free reimbursement in an
BASIC FINANCIAL STATEMENTS
120 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
amount set by the Virginia General Assembly for each year of service credit against qualified health
insurance premiums retirees pay for single coverage, excluding any portion covering the spouse or
dependents. The credit cannot exceed the amount of the premiums and ends upon the retiree's death.
In order to participate, retirees must have at least 15 years of service credit. The HIC OPEB plan
provides the following benefits for eligible employees:
• At Retirement - For teacher and other professional school employees who retire, the monthly benefit is $4.00 per year of service per month with no cap on the benefit amount.
• Disability Retirement - For teacher and other professional school employees who retire on disability or go on long-term disability under the Virginia Local Disability Program (VLDP), the
month benefit is either (a) $4.00 per month, multiplied by twice the amount of service credit, or
(b) $4.00 per month, multiplied by the amount of service earned had the employee been active
until age 60, whichever is lower.
Employees who retire after being on long-term disability under VLDP must have at least 15 years of
service credit to qualify for the health insurance credit as a retiree.
Contributions
The contribution requirement for active employees is governed by Section 51.1-1401(E) of the Code,
as amended, but may be impacted as a result of funding provided to school divisions by the Virginia
General Assembly. Each school division's contractually required contribution rate for the year ended
June 30, 2021, was 1.21 percent of covered employee compensation for employees in the HIC OPEB
plan. This rate was based on an actuarially determined rate from an actuarial valuation as of June 30,
2019. The actuarially determined rate was expected to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
Employer contributions to the HIC OPEB plan were $19,679,363 and $19,517,590 for the years
ended June 30, 2021 and June 30, 2020, respectively.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
At June 30, 2021, the Public Schools reported a liability of $242,022,384 for its proportionate share
of the net HIC OPEB liability. The net HIC OPEB liability was measured as of June 30, 2020, and
the total HIC OPEB liability used to calculate the net HIC OPEB liability was determined by an
actuarial valuation as of that date. The Public Schools’ proportion of the net HIC OPEB liability was
based on actuarially determined employer contributions to the HIC OPEB plan for the year ended
June 30, 2020, relative to the total of the actuarially determined employer contributions for all
participating employers. At June 30, 2020, Public Schools’ proportion was 18.55 percent, as
compared to 18.47 percent at June 30, 2019.
For the year ended June 30, 2021, Public Schools recognized HIC OPEB expense of $20,992,885.
Since there was a change in proportionate share between measurement dates, a portion of the HIC
OPEB expense was related to deferred amounts from changes in proportion.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 121
At June 30, 2021, Public Schools reported deferred outflows of resources and deferred inflows of
resources related to HIC OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
C hanges in proportionate share of
contributions 5,081,496$ -
C hange of assumptions 4,784,444 1,322,342
Difference between expected and actual
experience - 3,232,106
1,072,548 -
C ontributions subsequent to the
measurement date 19,679,363 -
Total 30,617,851$ 4,554,448
Net difference between expected and
actual earnings on OPEB plan investment
A total of $19,679,363 reported as deferred outflows of resources related to HIC OPEB resulting from
Public Schools’ contributions subsequent to the measurement date will be recognized as a reduction
of the net HIC OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to HIC OPEB will be recognized in
HIC OPEB expense as follows:
Year Ended June 30 VRC HIC OPEB
2022 1,172,817$
2023 1,279,128
2024 1,243,506
2025 1,228,829
2026 1,050,346
Thereafter 409,414
6,384,040$
Actuarial Assumptions
The total HIC OPEB liability for VRS was based on an actuarial valuation as of June 30, 2019, using
the entry age normal actuarial cost method and the following assumptions, applied to all periods
included in the measurement and rolled forward to the measurement date of June 30, 2020.
Inflation 2.50%
Salary increases, including inflation 3.50% to 5.95%
Investment rate of return, net of plan
investment expense, including inflation (a)
6.75%
(a) Administrative expenses as a percent of the market value of assets for the last experience study
were found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide
an assumed investment return rate for GAAP purposes of slightly more than the assumed 6.75%. However,
since the difference was minimal, and a more conservative 6.75% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected rate
of return on investments was assumed to be 6.75% to simplify preparation of OPEB liabilities.
BASIC FINANCIAL STATEMENTS
122 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial
experience study for the four-year period from July 1, 2012, through June 30, 2016. Changes to the
actuarial assumptions as a result of the experience study are as follows:
Morality rates (pre-retirement, post-retirement
healthy, and disabled)
Update to a more current mortality table-PR-2014 projected to
2020
Retirement rates Lowered rates at older ages and changed final retirement from
70 to 75
Withdrawal rates Adjusted rates to better fit experience at each year age and
service through 9 years of service
Disability rates Adjusted rates to better match experience
Salary scale No change
Discount rate Decrease rate from 7.00% to 6.75%
Long-term Expected Rate of Return
The long-term expected rate of return on VRS investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected
returns, net of VRS 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. The target asset allocation and best estimate of arithmetic real rates of return for each major
asset class are summarized in the following table:
Asset C lass (Strategy)
Target
Allocation
Arithmetic
Long-Term
Expected
Rate of
Return
Weighted
Average Long-
Term
Expected Rate
of Return
Public Equity 34.00 % 4.65 % 1.58 %
Fixed Income 15.00 0.46 0.07
C redit Strategies 14.00 5.38 0.75
Real Assets 14.00 5.01 0.70
Private Equity 14.00 8.34 1.17
Multi-Asset Public Strategies 6.00 3.04 0.18
Private Investment 3.00 6.49 0.19
Total 100.00 % 4.64 %
Inflation 2.50
Expected arithmetic nominal return (a)
7.14 %
( a) The above alloc ation provides a one- year return of 7.14 perc ent. However, one- year returns do not take
into ac c ount the volatility present in eac h of the asset c lasses. In setting the long- term expec ted return for
VRS, stoc hastic projec tions are employed to model future returns under various ec onomic c onditions. The
results provide a range of returns over various time periods that ultimately provide a median return of 7.11
perc ent, inc luding expec ted inflation of 2.50 perc ent. On Oc tober 10, 2019, the VRS Board elec ted a long-
term rate of 6.75 perc ent whic h is roughly at the 40th perc entile of expec ted long- term results of the VRS fund
asset alloc ation. More rec ent c apital market assumptions c ompiled for the fisc al year 2020 ac tuarial
valuations, provide a median return of 6.81 perc ent.
Discount Rate
The discount rate used to measure the total HIC OPEB liability was 6.75 percent. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be made in
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 123
accordance with the VRS funding policy at rates equal to the actuarially determined contribution rates
adopted by the VRS Board of Trustees. Through the fiscal year ending June 30, 2020, the rate
contributed by Public Schools for the VRS HIC plan will be subject to the portion of the VRS Board-
certified rates that are funded by the Virginia General Assembly. From July 1, 2020 on, school
divisions are assumed to contribute 100 percent of the actuarially determined contribution rates.
Based on those assumptions, VRS plan's fiduciary net position was projected to be available to make
all projected future benefit payments of current active and inactive employees. Therefore, the long-
term expected rate of return was applied to all periods of projected benefit payments to determine the
total HIC OPEB liability.
Sensitivity of Public Schools’ Proportionate Share of the Net OPEB Liability to Changes in the
Discount Rate
The following presents Public Schools’ proportionate share of the net HIC OPEB liability using the
discount rate of 6.75 percent, as well as what Public Schools’ proportionate share of the net HIC
OPEB liability would be if it were calculated using a discount rate that is one percentage lower (5.75
percent) or one percentage higher (7.75 percent) than the current rate:
1% Decrease Current Discount
Rate 1% Increase
5.75% 6.75% 7.75%
Public Schools' proportionate share
of the VRS net HIC OPEB liability 270,918,823$ 242,022,384$ 217,462,495$
OPEB Plan Fiduciary Net Position
Detailed information about the HIC OPEB plan's fiduciary net position is available in the separately
issued VRS 2020 Annual Comprehensive Financial Report (ACFR). A copy of the 2020 VRS ACFR
may be obtained from the VRS website at VRS 2020 ACFR, or by writing to the VRS Chief Financial
Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
6. VRS General Life Insurance (GLI) OPEB
Plan Description
The GLI OPEB plan is a cost-sharing, multiple-employer plan administered by VRS. All full-time,
salaried permanent employees of the state agencies, teachers and employees of participating political
subdivisions are automatically covered by the GLI OPEB plan upon employment. In addition to
Basic Group Life Insurance benefit, members are also eligible to elect additional coverage for
themselves as well as a spouse or dependent children through the Optional GLI plan. For members
who elect the optional group life insurance coverage, the insurer bills Public Schools directly for the
premiums. Public Schools deducts these premiums from members' paychecks and pays the premiums
to the insurer. Since this is a separate and fully insured program, it is not included as part of the GLI
OPEB plan. Coverage ends for employees who leave their position before retirement eligibility or
who take a refund of their member contributions and accrued interest.
The benefits payable under the GLI OPEB plan have the following components:
• Natural Death Benefit - The natural death benefit is equal to the employee's covered compensation rounded to the next highest thousand and then doubled.
• Accidental Death Benefit - The accidental death benefit is double the natural death benefit.
BASIC FINANCIAL STATEMENTS
124 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
• Other Benefit Provisions - In additional to the basic natural and accidental death benefits, the plan provides additional benefits provided under specific circumstances. These benefits include
accidental dismemberment, safety belt, repatriation, felonious assault and accelerated death
options.
The benefit amounts provided to members covered under the GLI OPEB plan are subject to a
reduction factor. The benefit amount reduces by 25.0 percent on January 1 following one calendar
year of separation. The benefit amount reduces by an additional 25.0 percent on each subsequent
January 1 until it reaches 25.0 percent of its original value. For covered members with at least 30
years of creditable service, there is a minimum benefit payable under the GLI OPEB plan. The
minimum benefit was set at $8,000 by statue. This amount is increased annually based on the VRS
Plan 2 cost-of-living adjustment and is currently $8,616 effective June 30, 2021.
Contributions
The contribution requirement for active employees is governed by Sections 51.1-506 and 51.1-508 of
the Code, as amended, but may be impacted as a result of funding provided to school divisions by the
Virginia General Assembly. The total rate for the GLI OPEB plan was 1.34 percent of covered
employee compensation. This was allocated into an employee and an employer component using a
60/40 split. The employee component was 0.80 percent (1.34 x 60 percent) and the employer
component was 0.54 percent (1.34 x 40 percent). Employers may elect to pay all or part of the
employee contribution, however, the employer must pay all of the employer contribution. Each
employer's contractually required employer contribution rate for the year ended June 30, 2021, was
0.54 percent of covered employee compensation. This rate was based on an actuarially determined
rate from an actuarial valuation as of June 30, 2019. The actuarially determined rate, when combined
with employee contributions, was expected to finance the costs of benefits payable during the year,
with an additional amount to finance any unfunded accrued liability. Employer contributions to the
GLI OPEB plan were $8,855,883 and $8,503,928 for the years ended June 30, 2021 and June 30,
2020, respectively.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
At June 30, 2021, Public Schools reported a liability of $132,610,252 for its proportionate share of
the net GLI OPEB liability. The net GLI OPEB liability was measured as of June 30, 2020 and the
total GLI OPEB liability used to calculate the net GLI OPEB liability was determined by an actuarial
valuation as of that date. The Public Schools’ proportion of the net GLI OPEB liability was based on
actuarially determined employer contributions to the GLI OPEB plan for the year ended June 30,
2020 relative to the total of the actuarially determined employer contributions for all participating
employers. At June 30, 2020, Public Schools’ proportion was 7.95 percent as compared to 7.96
percent at June 30, 2019.
For the year ended June 30, 2021, Public Schools recognized GLI OPEB expense of $5,949,805.
Since there was a change in proportionate share between measurement dates, a portion of the GLI
OPEB expense was related to deferred amounts from changes in proportion.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 125
At June 30, 2021, Public Schools reported deferred outflows of resources and deferred inflows of
resources related to GLI OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
C hanges in proportionate share 2,887,135$ 370,725
Difference between expected and actual
experience 8,505,722 1,191,073
C hange of assumptions 6,632,045 2,768,969
3,983,484 -
C ontributions subsequent to the measurement
date 8,855,883 -
Total 30,864,269$ 4,330,767
Net difference between expected and actual
earnings on OPEB plan investment
A total of $8,855,883 reported as deferred outflows of resources related to GLI OPEB resulting from
Public Schools’ contributions subsequent to the measurement date will be recognized as a reduction
of the net GLI OPEB liability in the year ended June 30, 2022. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to GLI OPEB will be recognized in
GLI OPEB expense as follows:
Year Ended June 30 VRC GLI OPEB
2022 2,890,204$
2023 4,015,168
2024 4,819,829
2025 4,713,227
2025 1,172,924
Thereafter 66,267
17,677,619$
Actuarial Assumptions
The total GLI OPEB liability for VRS was based on an actuarial valuation as of June 30, 2019, using
the entry age normal actuarial cost method and the following assumptions, applied to all periods
included in the measurement and rolled forward to the measurement date of June 30, 2020.
Inflation 2.50%
Salary increases, including inflation 3.50% to 5.95%
Investment rate of return, net of plan
investment expense, including inflation (a)
6.75%
(a) Administrative expenses as a percent of the market value of assets for the last experience study
were found to be approximately 0.06% of the market assets for all of the VRS plans. This would provide
an assumed investment return rate for GAAP purposes of slightly more than the assumed 6.75%. However,
since the difference was minimal, and a more conservative 6.75% investment return assumption provided
a projected plan net position that exceeded the projected benefit payments, the long-term expected rate
of return on investments was assumed to be 6.75% to simplify preparation of OPEB liabilities.
BASIC FINANCIAL STATEMENTS
126 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an
actuarial experience study for the four-year period from July 1, 2012 through June 30, 2016. Changes
to the actuarial assumptions as a result of the experience study are as follows:
Morality rates (pre-retirement, post-retirement
healthy, and disabled)
Update to a more current mortality table-PR-2014 projected to
2020
Retirement rates Lowered rates at older ages and changed final retirement from
70 to 75
Withdrawal rates Adjusted rates to better fit experience at each year age and
service through 9 years of service
Disability rates Adjusted rates to better match experience
Salary scale No change
Discount rate Decrease rate from 7.00% to 6.75%
Long-term Expected Rate of Return
The long-term expected rate of return on VRS investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return (expected
returns, net of VRS 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. The target asset allocation and best estimate of arithmetic real rates of return for each major
asset class are summarized in the following table:
Asset C lass (Strategy)
Target
Allocation
Arithmetic
Long-Term
Expected
Rate of
Return
Weighted
Average Long-
Term
Expected Rate
of Return
Public Equity 34.00 % 4.65 % 1.58 %
Fixed Income 15.00 0.46 0.07
C redit Strategies 14.00 5.38 0.75
Real Assets 14.00 5.01 0.70
Private Equity 14.00 8.34 1.17
Multi-Asset Public Strategies 6.00 3.04 0.18
Private Investment 3.00 6.49 0.19
Total 100.00 % 4.64 %
Inflation 2.50
Expected arithmetic nominal return (a)
7.14 %
( a) The above alloc ation provides a one- year return of 7.14 perc ent. However, one- year returns do not take
into ac c ount the volatility present in eac h of the asset c lasses. In setting the long- term expec ted return for
VRS, stoc hastic projec tions are employed to model future returns under various ec onomic c onditions. The
results provide a range of returns over various time periods that ultimately provide a median return of 7.11
perc ent,inc luding expec ted inflation of 2.50 perc ent. On Oc tober 10, 2019, the VRS Board elec ted a long-
term rate of 6.75 perc ent whic h is roughly at the 40th perc entile of expec ted long- term results of the VRS fund
asset alloc ation. More rec ent c apital market assumptions c ompiled for the fisc al year 2020 ac tuarial
valuations, provide a median return of 6.81 perc ent.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 127
Discount Rate
The discount rate used to measure the total GLI OPEB liability was 6.75 percent. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be made in
accordance with the VRS funding policy at rates equal to the actuarially determined contribution rates
adopted by the VRS Board of Trustees. Through the fiscal year ending June 30, 2020, the rate
contributed by Public Schools for the GLI OPEB plan will be subject to the portion of the VRS
Board-certified rates that are funded by the Virginia General Assembly. From July 1, 2020 on, school
divisions are assumed to contribute 100 percent of the actuarially determined contribution rates.
Based on those assumptions, VRS plan's fiduciary net position was projected to be available to make
all projected future benefit payments of eligible employees. Therefore, the long-term expected rate of
return was applied to all periods of projected benefit payments to determine the total GLI OPEB
liability.
Sensitivity of Public Schools’ Proportionate Share of the Net OPEB Liability to Changes in the
Discount Rate
The following presents Public Schools’ proportionate share of the net GLI OPEB liability using the
discount rate of 6.75 percent, as well as what Public Schools’ proportionate share of the net GLI
OPEB liability would be if it were calculated using a discount rate that is one percentage lower (5.75
percent) or one percentage higher (7.75 percent) than the current rate:
1% Decrease Current Discount
Rate 1% Increase
5.75% 6.75% 7.75%
Public Schools' proportionate share
of the VRS net GLI OPEB liability 174,326,329$ 132,610,252$ 98,732,850$
OPEB Plan Fiduciary Net Position
Detailed information about the GLI OPEB plan's fiduciary net position is available in the separately
issued VRS 2020 Annual Comprehensive Financial Report (ACFR). A copy of the 2020 VRS ACFR
may be obtained from the VRS website at VRS 2020 ACFR, or by writing to the VRS Chief Financial
Officer at P.O. Box 2500, Richmond, VA, 23218-2500.
I. RISK MANAGEMENT
The reporting entity is 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 and Public Schools
maintain self-insurance internal service funds for workers’ compensation claims and certain property and
casualty risks and for health insurance benefits. The County and Public Schools believe that it is more cost
effective to manage certain risks internally rather than purchase commercial insurance. The FCRHA, Park
Authority, and EDA participate in the County’s self-insurance program. Participating funds and agencies are
charged “premiums” which are computed based on relevant data coupled with actual loss experience applied
on a retrospective basis.
Liabilities are reported in the self-insurance fund when it is probable that losses have occurred and the
amounts of the losses can be reasonably estimated. Liabilities include an amount for claims that have been
incurred but not reported to date. Because actual claims liabilities depend on such complex factors as
inflation, changes in governing laws and standards, and court awards, the process used in computing claims
liabilities is reevaluated periodically, to include an annual actuarial study, to take into consideration the
history, frequency and severity of recent claims and other economic and social factors. These liabilities are
computed using a combination of actual claims experience and actuarially determined amounts and include
BASIC FINANCIAL STATEMENTS
128 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
any specific, incremental claim adjustment expenses and estimated recoveries. The liabilities do not include
nonincremental claim adjustment expenses.
The claims liabilities in the self-insurance funds are discounted at 1.63 and 1.10 percent at June 30, 2021 and
2020, respectively, to reflect anticipated investment income. Changes in the balances of claims liabilities
during fiscal years 2021 and 2020 are presented as follows:
Self-Insurance Health Benefits Insurance
Health Benefits
Trust
Liability balances, June 30, 2019 61,598,000$ 12,311,000 44,716,750 19,849,000
C laims incurred
C laims and changes in estimates 29,601,957 167,296,508 15,245,073 402,299,161
C laims payments (22,845,957) (168,202,508) (13,548,639) (405,873,161)
Liability balances, June 30, 2020 68,354,000 11,405,000 46,413,184 16,275,000
C laims incurred
C laims and changes in estimates 18,837,500 173,392,947 (36,519,681) 408,926,286
C laims payments (17,195,500) (172,006,947) (9,803,654) (424,984,417)
Liability balances, June 30, 2021 69,996,000$ 12,791,000 89,849 216,869
Primary Government C omponent Unit - Public Schools
Internal Service Funds
In addition to the self-insurance program, commercial property insurance is carried for buildings and contents
plus certain large and costly items, such as fire apparatus and helicopters. Excess liability and workers’
compensation insurance policies are maintained for exposures above a $2,000,000 self-insured retention (SIR)
for liability and $3,000,000 for workers’ compensation. In the past five fiscal years, there was one 2016
liability claim settled which exceeded the liability SIR.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 129
J. LONG-TERM OBLIGATIONS
resented on the following page is a summary of changes in the government-wide long-term obligations of the
primary government and component units for the year ended June 30, 2021 (in thousands):
Additions Reductions
Primary Government
Governmental activities:
General obligation bonds payable:
Principal amount of bonds payable 2,259,045$ 548,250 (451,390) 2,355,905 213,570
Premium on bonds payable 244,003 36,549 (62,740) 217,812 35,528
Revenue bonds payable:
Principal amount of bonds payable 700,005 55,650 (108,440) 647,215 37,430
Premium on bonds payable 77,323 5,682 (9,633) 73,372 8,727
Discount on bonds payable (166) - 166 - -
Notes payable 439,073 11,955 (645) 450,383 645
C ompensated absences payable 150,860 78,066 (67,371) 161,555 74,226
Landfill closure and postclosure obligations 48,833 586 - 49,419 36
Obligations under capital leases and installment purchases 7,526 1,274 (5,807) 2,993 1,192
Insurance and benefit claims payable 79,759 192,231 (189,203) 82,787 26,291
Net pension liability 1,801,228 811,107 (417,618) 2,194,717 -
Net OPEB liability 132,635 44,720 (161,415) 15,940 -
Other:
HUD Section 108 loans 4,013 - (459) 3,554 459
Library Exchange 13,281 - (862) 12,419 865
Total governmental activities 5,957,418 1,786,070 (1,475,417) 6,268,071 398,969
Business-type activities:
Sewer revenue bonds payable:
Principal amount of bonds payable 564,330 327,429 (149,547) 742,212 32,113
Premium on bonds payable 46,211 53,907 (6,985) 93,133 4,021
Net pension liability 36,801 13,045 (8,837) 41,009 -
Net OPEB liability 3,456 1,283 (4,319) 420 -
C ompensated absences payable 2,751 1,864 (1,425) 3,190 1,558
Total business-type activities 653,549 397,528 (171,113) 879,964 37,692
Total long-term liabilities - Primary Government 6,610,967$ 2,183,598 (1,646,530) 7,148,035 436,661
Component Units
Public Schools
C ompensated absences payable 37,754$ 27,723 (26,428) 39,049 27,334
Obligations under capital leases and installment purchases 83,881 52,847 (26,936) 109,792 28,306
Insurance and benefit claims payable 62,688 10,479 (1,050) 72,117 30,833
Net pension liability 3,769,694 766,244 (420,645) 4,115,293 -
Net OPEB liability 435,475 767,020 (815,034) 387,461 -
Unearned rent 4,222 3,278 (3,345) 4,155 -
Total Public Schools 4,393,714 1,627,591 (1,293,438) 4,727,867 86,473
FCRHA
Mortgage revenue bonds payable 40,765 - (21,079) 19,686 715
Mortgage notes payable *
81,459 7,550 (521) 88,488 26,610
Net pension liability 26,589 8,979 (6,306) 29,262 -
Net OPEB liability 2,454 817 (2,980) 291 -
C ompensated absences payable 1,332 218 (626) 924 477
Total FC RHA 152,599 17,564 (31,512) 138,651 27,802
Park Authority
Revenue bonds payable:
Principal amount of bonds payable 775 - (775) - -
Premium on bonds payable 12 14 (26) - -
Net pension liability 57,132 16,759 (15,369) 58,522 -
Net OPEB liability 6,258 2,084 (7,599) 743 -
Loan from Primary Government 10,185 - (586) 9,599 645
C ompensated absences payable 5,629 2,095 (1,949) 5,775 2,308
Total Park Authority 79,991 20,952 (26,304) 74,639 2,953
EDA
C ompensated absences payable 462 267 (176) 553 217
Unearned rent 456 - (180) 276 201
Net pension liability 6,653 1,937 (1,826) 6,764 -
Net OPEB liability 392 132 (477) 47 -
Total EDA 7,963 2,336 (2,659) 7,640 418
Total long-term liabilities - Component units 4,634,267$ 1,668,443 (1,353,913) 4,948,797 117,646
* Beginning balance updated for restatement due to reporting entity. See Note N for more information.
Due
Within
One Year
Balance
June 30, 2020
Balance
June 30, 2021
BASIC FINANCIAL STATEMENTS
130 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Compensated absences payable, obligations under capital leases, obligation to component unit, and
obligations for claims and judgments for the Primary Government are liquidated by the General Fund and
other governmental funds. The landfill closure and postclosure obligation will be liquidated by the I-95
Refuse Disposal Fund, a special revenue fund. In addition, the County, FCRHA, Park Authority, and EDA
are required to adhere to and be in compliance with the rebate and reporting requirements of the federal
regulations pertaining to arbitrage investment earnings on certain bond proceeds. The General Fund and other
governmental funds provide funding to Trust funds that have been established for the liquidation of
obligations associated with pensions and other postemployment benefits. The Primary Government funding
source for the employer share contributions to these trusts is primarily provided by the General Fund.
1. General Obligation Bonds
General obligation bonds are issued to provide funding for long-term capital improvements. In
addition, they are issued to refund outstanding general obligation bonds when market conditions
enable the County to achieve significant reductions in its debt service payments. Such bonds are
direct obligations of the County, and the full faith and credit of the County are pledged as security.
The County is required to submit to public referendum for authority to issue general obligation bonds.
At June 30, 2021, the amount of general
obligation bonds authorized and unissued is
summarized to the right.
The Commonwealth does not impose a
legal limit on the amount of general
obligation indebtedness that the County can
incur or have outstanding. The Board,
however, has self-imposed bond limits to
provide that the County’s net debt may not
exceed three percent of the total market value
of taxable real and personal property in the
County. In addition, the annual debt service may not exceed ten percent of the annual General Fund
disbursements. As a financial guideline, the Board also follows a self-imposed limitation in total
general obligation bond sales of $1.5 billion over a five-year period or an average of $300 million
annually, with a maximum of $325 million in any given year. All self-imposed bond limits have been
complied with at June 30, 2021.
The General Obligation Bonds do not specifically provide any remedies that would be available to a
bondholder if the County defaults in the payment of principal of or interest on the Bonds, nor do they
contain a provision for the appointment of a trustee to protect and enforce the interests of the
bondholders upon the occurrence of such default. If a bondholder does not receive payment of
principal or interest when due, the holder could seek to obtain a writ of mandamus from a court of
competent jurisdiction requiring the Board of Supervisors to levy and collect an ad valorem tax,
unlimited as to rate or amount, upon all property in the County subject to local taxation sufficient to
pay the principal of and the interest on the Bonds as the same shall become due. The mandamus
remedy, however, may be impracticable and difficult to enforce. The enforceability of rights or
remedies with respect to the Bonds may be limited by bankruptcy, insolvency, or other State or
federal laws.
In February 2021, the County issued $254,190,000 of Series 2021A General Obligation Public
Improvement Bonds with an average interest rate of 2.73 percent. The bonds were issued to finance
projects related to school improvements, public safety, park facilities, and other purposes.
Bond Purpose
Amount
(in
Thousands)
School improvements 511,850$
Transportation improvements 198,240
Parks and park facilities 170,570
Human Services 152,600
Public safety facilities 327,510
Public library facilities 98,000
Total authorized but unissued bonds 1,458,770$
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 131
In September 2020, the County issued $294,060,000 of Series 2020B General Obligation Public
Improvement Refunding Bonds with an average interest rate of 1.43 percent. The Refunding Bonds
were issued to advance refund $105,720,000 of outstanding Series 2014A bonds, $68,190,000 of
outstanding Series 2015A bonds, and $73,060,000 of outstanding Series 2016A bonds. Proceeds of
$293,126,253 were used to purchase U.S. Government securities which were deposited in an
irrevocable escrow account to provide for the resources to redeem the Series 2014A on October 1,
2023, Series 2015A on October 1, 2024, and Series 2016A on April 1, 2026. The County refunded
these bonds to reduce its total debt service payments over sixteen years by approximately
$32,436,896 and to obtain an economic gain of approximately $29,672,183.
Detailed information regarding the general obligation bonds outstanding as of June 30, 2021, is
contained in Section 5 of this note.
2. Revenue Bonds
In June 2003, the EDA issued $70,830,000 of revenue bonds to finance the development and
construction of a public high school and a public golf course and related structures, facilities, and
equipment in the Laurel Hill area of the southern part of the County. In April 2012, the Authority
issued $47,745,000 to advance refund a portion of the outstanding Series 2003 Laurel Hill revenue
bonds.
In January 2005, the EDA issued $60,690,000 of facilities revenue bonds to finance the acquisition of
land and an existing office building to enable the Fairfax County Public Schools to consolidate
numerous Public Schools’ administrative offices. In June 2014, the Authority issued $44,000,000 to
advance refund certain outstanding maturities of the Series 2005 facilities revenue bonds.
In March 2010, the EDA issued $43,390,000 of lease revenue bonds to current refund the FCRHA
$3,365,000 of outstanding Series 1996 lease revenue bonds, $2,960,000 of outstanding Series 1998
lease revenue bonds, $835,000 of outstanding Series 1999 lease revenue bonds, and to advance refund
the FCRHA $7,245,000 of outstanding Series 2004 lease revenue bonds, and the County’s
$25,580,000 of outstanding Series 2000 certificate of participation bonds. In April 2019, the EDA
issued $18,125,000 of lease revenue bonds to current refund certain outstanding maturities of the
Series 2010 lease revenue bonds. Also, in April 2019, the remaining outstanding maturities of the
Series 2010 lease revenue bonds were fully redeemed.
In May 2011, the EDA issued $205,705,000 of transportation district improvement revenue bonds
(Silver Line Phase 1 Project) Series 2011 and in September 2012, the EDA issued $42,390,000 of
transportation district improvement revenue bonds (Silver Line Phase 1 Project) Series 2012 to
finance a portion of the costs of the construction of the first phase of an extension of the Washington
Metropolitan Area Transit Authority’s (WMATA) mass transit system in the County. In March 2016,
the EDA issued $173,960,000 to refund a portion of the bonds issued in 2011 and 2012. In December
2019, Fairfax County set aside funds for $19,546,337 into a depositary account with the Trustee for
purposely partially defeasing certain Series 2016 obligations associated with the transportation district
improvement revenue bonds (Silver Line Phase 1 Project) with a principal amount of $17,495,000.
These funds were placed in escrow on April 1, 2020 until the call date of the bonds. In May 2021,
Fairfax County partially defeased certain Series 2016 obligations associated with the transportation
district improvement revenue bonds (Silver Line Phase 1 Project) with a principal amount of
$11,190,000. In April 2020, the 2011 and 2012 Bonds were fully redeemed.
In July 2011, the EDA issued $99,430,000 of revenue bonds Series 2011 to finance a portion of the
costs of the construction of a public parking facility on public lands within Fairfax County, Virginia,
to serve the Wiehle Avenue Metrorail Station. In September 2019, the Authority sold $62,285,000
BASIC FINANCIAL STATEMENTS
132 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
revenue refunding bonds (Forward Delivery Bonds) for the purpose of refunding certain maturities of
the Authority’s Revenue Bonds (Wiehle Avenue Metrorail Station Parking Project) Series 2011. The
Series 2020 bonds were issued and delivered on May 5, 2020. In August 2020, the remaining
outstanding maturities of the Series 2011 Bonds were fully redeemed.
In May 2012, the EDA issued $65,965,000 of revenue bonds Series 2012 to finance the improvement
of certain properties to be used by the County as mental health facilities and as a neighborhood
community center. In August 2017, the EDA issued $31,150,000 of refunding revenue bonds to
advance refund certain outstanding maturities of the Series 2012A facilities revenue bonds.
In June 2014, the EDA issued $126,690,000 of facilities revenue bonds to finance the costs of the
construction of a building to serve as a public safety facility for the County. Also, in June 2014, EDA
issued $30,175,000 of facilities revenue bonds to finance the leasehold acquisition from LAF, LLC of
the Workhouse Arts Center located in Lorton, Virginia.
In March 2017, the EDA issued $69,645,000 of facilities revenue bonds to finance the construction of
parking facilities to be owned and operated by the County, located adjacent to WMATA’s Herndon
and Innovation Center Metrorail Stations.
In August 2017, the EDA issued $19,060,000 of facilities revenue bonds to finance the costs of the
construction and improvement of certain property to be used by the County as an adult day care
facility, child day care centers, and a senior center or for other County approved purposes.
As the County is responsible, under the related documents and subject to annual appropriation, to
make payments to a trustee sufficient to pay principal and interest on these bonds, the related
transactions, including the liability for the bonds, have been recorded in the County’s financial
statements and not in those of EDA.
In the event of default, EDA Revenue Bonds Trustees may declare the principal of all of the Bonds
then outstanding, to be due and payable immediately, subject to the right of EDA to cure such default.
Bondholders will have the right to direct the method and place of conducting all remedial proceedings
to be taken under the agreement. The acceleration clause, if applicable, allows the lender, upon
default, to accelerate payment of the entire unpaid Bond principal and interest.
In June 2011, the CDA issued $46,980,000 of revenue bonds (Mosaic District Project) Series 2011A.
In July 2011, the Authority issued $18,670,000 of revenue bonds (Taxable) Series 2011A-T. The
bonds were issued to finance certain public infrastructure improvements within or serving the CDA
district. The 2011 Bonds are limited obligations of the CDA, payable solely from and secured by a
pledge of certain County Advanced Revenues and certain Special Assessment Revenues. In
December 2020, the CDA issued $37,765,000 of revenue refunding bonds (Mosaic District Project)
Series 2020A to current refund the outstanding maturities of the Series 2011A revenue bonds, which
resulted in an aggregate decrease in the overall debt service of $23,940,499 and an economic gain
(the difference between the present values of the old and new debt service payments) of $17,659,695.
In December 2020, the CDA issued $17,885,000 of revenue refunding bonds (Taxable) Series
2020A-T to current refund the outstanding maturities of the Series 2011A-T revenue bonds, which
resulted in an aggregate decrease in the overall debt service of $9,226,274 and an economic gain of
$6,539,005. These bond refundings resulted in a deferred loss of $161,042. The 2020 Bonds are
limited obligations of the CDA, payable solely from and secured by a pledge of certain County
Advanced Revenues and certain Special Assessment Revenues.
In November 2013, the County issued a $11,085,000 of special subfund revenue bond (the “2013
VRA Bond”) to Virginia Resources Authority (“VRA”). In return for issuing the 2013 VRA Bond,
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 133
VRA provided the County with a portion of the proceeds realized from its autumn 2013 pooled
financing bond transaction. The 2013 VRA Bond was issued to finance renovations to a complex that
serves as a senior housing and assisted living facility, a senior center, and an adult day health care
center in the County. The County is obligated by a contract with VRA to pay amounts equal to the
debt service on the 2013 VRA Bond.
In the event of default, VRA has the right to immediately declare all outstanding bond payments due
and payable by the County without further notice or demand and is authorized to take legal action
necessary to collect the payments owed.
None of these revenue bonds nor the related payment responsibilities of the County are general
obligation debt of the County, and the full faith and credit of the County is not pledged to these bonds
for such payment responsibility.
Detailed information regarding the revenue bonds outstanding as of June 30, 2021, is contained in
Section 5 of this note.
3. Sewer Revenue Bonds
On October 14, 2004, the Sewer System issued $94,005,000 of Series 2004 sewer revenue refunding
bonds, with an average interest rate of 4.61 percent, to advance refund $91,430,000 of the outstanding
Series 1996 sewer revenue bonds with an average interest rate of 5.82 percent. Net proceeds of the
refunding bond were used mostly to redeem the Series 1996 bonds on July 15, 2006.
On August 8, 2012, the Sewer System issued $90,710,000 of Series 2012 sewer revenue bonds, with
an average interest rate 4.53 percent, to fund upgrade costs allocable to the System at certain
treatment facilities that are owned by or that provide service to the County, the purchase of additional
capacity, and the costs for other system improvements.
On April 16, 2014, the Sewer System issued $61,755,000 of Series 2014 sewer revenue refunding
bonds, with an average interest rate of 4.14 percent, to advance refund $69,745,000 of the outstanding
Series 2004 sewer revenue refunding bonds with an average interest rate of 4.61 percent. Net
proceeds of the refunding bond were used mostly to redeem the Series 2004 bonds on July 15, 2014.
This refunding resulted in a deferred net loss of $4,045,945, which is being amortized over 15 years,
and an aggregate decrease in the overall debt service of $15,461,166.
On May 12, 2016, the Sewer System issued $164,450,000 of Series 2016A sewer revenue bonds, with
a weighted average interest rate of 3.92 percent, to advance refund $123,065,000 of outstanding
Series 2009 revenue bonds with an average interest rate of 4.80 percent and $46,720,000 of
outstanding Series 2012 revenue bonds with an average interest rate of 4.67 percent. This refinancing
resulted in a deferred net loss of $12,406,377, which is being amortized over 24 years, and remaining
outstanding amounts of $13,400,000 unrefunded Series 2009 bonds and $39,545,000 unrefunded
Series 2012 bonds. This refunding resulted in an aggregate decrease in the overall debt service of
$35,116,418 and an economic gain (the difference between the present values of the old and new debt
service payments) of $20,440,024.
On June 28, 2017, the Sewer System issued $85,785,000 of Series 2017 sewer revenue bonds, with an
average interest rate of 4.77 percent, to fund certain additions, extensions, and improvements to the
County’s sewage collection, treatment, and disposal systems, capital improvement costs allocable to
the County at certain wastewater treatment facilities that provide service to the County, the purchase
of any necessary additional capacity at certain wastewater treatment facilities for the benefit of the
County, the costs of issuing the Series 2017 Bonds, and the necessary deposit to the reserve subfund.
BASIC FINANCIAL STATEMENTS
134 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
On June 9, 2021, the Sewer System issued $191,990,000 of Series 2021A sewer revenue bonds, with
an average interest rate of 4.66 percent to pay the costs of certain additions, extensions and
improvements to the County’s sewage collection, treatment and disposal systems, pay for capital
improvement costs allocable to the County at certain wastewater treatment facilities that provide
service to the County and, if necessary, purchase additional capacity at certain wastewater treatment
facilities for the benefit of the County, the costs of issuing the Series 2021A bonds, and the necessary
deposit to the reserve subfund.
On June 9, 2021, the Sewer System issued $24,210,000 of Series 2021B sewer revenue refunding
bonds, with an average interest rate of 3.67 percent to refund $28,625,000 of the outstanding Series
2012 Bonds with an average interest rate of 4.50 percent. The net proceeds were used to redeem the
Series 2012 bonds on July 15, 2021. This refunding resulted in a deferred net gain of $3,969,019,
which is being amortized over 21 years, and an aggregate decrease in the overall debt service of
$11,937,848.
As of June 30, 2021, the outstanding bonds consist of $2,055,000 of Series 2012 revenue bonds,
$40,405,000 of Series 2014 revenue refunding bonds, $160,635,000 of Series 2016A revenue
refunding bonds, $81,640,000 of Series 2017 revenue bonds, $191,990,000 of Series 2021A revenue
bonds, and $24,210,000 of Series 2021B revenue refunding bonds.
The aforementioned sewer revenue bonds were issued in accordance with the General Bond
Resolution adopted by the Board on July 29, 1985 and are payable from and secured by the net
revenue generated through the Sewer System’s operations. The General Bond Resolution includes a
rate covenant under which the Sewer System agrees to charge reasonable rates for the use of services
it renders but will adjust the rates from time to time to generate net revenues sufficient to provide an
amount equal to 100 percent of its annual principal and interest requirements as well as the Sewer
System’s annual commitments to fund its proportionate share of other jurisdictions’ debt service
requirements. Pursuant to the General Bond Resolution, the Sewer System is required to maintain a
reserve equal to the lesser of (i) the maximum principal and interest requirements of the outstanding
bonds for any year or (ii) 125 percent of the average annual principal and interest for any bond year.
In addition, payment of the principal and interest on all bonds is insured by municipal bond insurance
policies.
In the event of default, Sewer Revenue Bonds Trustees may proceed to protect and enforce its rights
and rights of the Bond Holders under the laws of the Commonwealth or the General Bond Resolution
or by proceedings in the office of any board having jurisdiction, either for the specific performance of
any agreement or for the enforcement of any proper legal or equitable remedy. In the enforcement of
any remedy under the General Bond Resolution, the Trustee or the Bond Holders will be entitled to
sue for, enforce payment of amounts remaining due for principal, interest, interest on overdue
payments of principal, all costs and expenses of collection and all proceedings under the General
Bond Resolution. The acceleration clause allows the lender, upon default, to accelerate payment of
the entire unpaid Bond principal and interest.
In December 2003, UOSA issued $58,150,000 of regional sewer system revenue refunding bonds
(UOSA 2003) to advance refund its outstanding UOSA 1993 bonds, resulting in a deferred net gain of
$1,514,497, which is being amortized over 18 years.
In July 2005, UOSA issued $82,465,000 of regional sewer system revenue refunding bonds (UOSA
2005), of which the Sewer System’s share is $53,201,198, to advance refund another portion of the
outstanding UOSA 1995 bonds. This resulted in a deferred net gain of $1,909,604, which is being
amortized over the life of the UOSA 2005 bonds.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 135
In February 2007, UOSA issued $90,315,000 of regional sewer system revenue refunding bonds
(UOSA 2007A), of which the Sewer System’s share is $58,265,521, to advance refund another
portion of the outstanding UOSA 1995 bonds. This resulted in a deferred net loss of $83,868, which
is being amortized over the life of the UOSA 2007A bonds.
In December 2007, UOSA issued $119,715,000 of regional sewer system revenue bonds (UOSA
2007B), of which the System’s share is $53,925,458, to fund the expansion of its wastewater
treatment and conveyance facilities.
In December 2010, UOSA issued $85,180,000 of regional sewer system revenue bonds (UOSA
2010), of which the System’s share is $34,113,615, to fund certain capital improvements.
In July 2011, UOSA entered into VRA loan Series 2011A to fund costs related to the Energy Service
project. In December 2011, UOSA entered into VRA loan Series 2011B to fund Phase 1 of the
Nutrient Compliance Improvement Project.
In May 2013, UOSA issued $101,615,000 of regional sewer system revenue refunding bonds (UOSA
2013A), of which the System’s share is $65,555,566, to advance refund the outstanding Series 2005
bonds. This refunding resulted in a deferred net loss of $12,354,368, which is being amortized over
the life of the Series 2013A bonds, but an aggregate decrease in the overall debt service of
approximately $4.9 million.
In November 2013, UOSA issued $37,735,000 of regional sewer system revenue refunding bonds
(UOSA 2013B), of which the System’s share is $23,911,671, to advance refund the outstanding
UOSA 2003 bonds. This resulted in a deferred net loss of $2,520,436, which is being amortized over
the life of the UOSA 2013B bonds, but an aggregate decrease in the overall debt service of
approximately $2.1 million.
In fiscal year 2015, UOSA issued regional sewer system revenue refunding bonds (UOSA 2014) to
advance refund the outstanding UOSA 2007A bonds and a portion of the outstanding UOSA 2007B
bonds. Of the $112,190,980 UOSA 2007 bonds outstanding balance, $93,175,291 was refunded into
the UOSA 2014 bonds. This resulted in a net deferred gain of $2,029,198, which is being amortized
over 24 years, and an aggregate decrease in the overall debt service of $6,359,189.
In fiscal year 2016, UOSA issued regional sewer system revenue refunding bonds (UOSA 2016B) to
advance refund the $19,015,689 remaining outstanding UOSA 2007B bonds. This refunding resulted
in a deferred net gain of $533,782, which is being amortized over 22 years, and an aggregate decrease
in the overall debt service of $4,676,694.
In December 2019, UOSA issued $52,440,000 of regional sewer system revenue bonds (UOSA
2019), of which the System’s share is $21,410,631, to fund improvements to UOSA’s regional
advanced wastewater treatment system.
In November 2020, UOSA issued regional sewer system revenue refunding bonds (UOSA 2020) to
advance refund the $91,146,092 remaining outstanding UOSA 2014 bonds. This refunding resulted
in a deferred net loss of $19,939,089, which is being amortized over 20 years, but an aggregate
decrease in the overall debt service of $2,594,724.
The Sewer System’s share of UOSA’s total outstanding debt as of June 30, 2021 is $238,023,361 and
it is subordinate to the sewer revenue bonds issued by the Sewer System.
BASIC FINANCIAL STATEMENTS
136 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
In the event of default, UOSA bondholders have the right to direct the method and place of
conducting all proceedings to be taken in connection with the enforcement of the terms and
conditions of the Trust Agreement. Bondholders do not have the right to institute any suit, action, or
proceeding in equity or at law for enforcement of the Trust Agreement for the execution trust unless
the specific terms of the bond agreement are met. Nothing in the Trust Agreement shall affect or
impair the right of any bondholder to enforce legal action for payment of the principal, premium, and
interest upon maturity of the bond.
In June 2001 and June 2002, the Sewer System issued 20-year subordinated sewer revenue bonds in
the amounts of $40,000,000 (VRA 2001) and $50,000,000 (VRA 2002), respectively, to the Virginia
Water Facilities Revolving Fund, acting by and through the Virginia Resources Authority (VRA).
The proceeds have been used to fund a portion of the Sewer System’s share of expansion and upgrade
costs for the Alexandria Renew Enterprises’ wastewater treatment facilities, which provide service to
certain County residents. In September 2012, the System executed a rate reduction agreement with
VRA, reducing the interest rates on VRA 2001 and VRA 2002 bonds from 4.10 percent and 3.75
percent per annum, respectively, to 2.35 percent per annum. This reduced the semi-annual debt
service payments from $1,499,642 and $1,818,894, respectively, to $1,395,539 and $1,706,099,
respectively. The rate reduction agreement resulted in interest savings of $1,769,745 and $2,143,099,
respectively.
In May 2016, the System executed a rate reduction agreement with VRA, reducing the interest rate of
VRA 2001 and VRA 2002 bonds from 2.35 percent to 0.95 percent per annum. This reduced the
semi-annual debt service payments from $1,395,539 and $1,706,099, respectively, to $1,349,141 and
$1,638,306, respectively. This rate reduction resulted in an aggregate decrease in the VRA 2001 and
VRA 2002 debt service of $463,990 and $813,525, respectively. The bonds are subordinate to all
outstanding prior bond issues of the Sewer System and Sewer System payments for operation and
maintenance expenses. In February 2021, the VRA 2001 subordinated sewer revenue bonds reached
final maturity.
As of June 30, 2021, the outstanding principal balance for the VRA 2002 subordinated revenue bond
is $3,253,412.
In the event of default, VRA has the right to immediately declare all outstanding bond payments due
and payable by the System without further notice or demand and is authorized to take legal action
necessary to collect the payments owed.
Detailed information regarding the sewer revenue bonds outstanding as of June 30, 2021 is contained
in Section 5 of this note.
4. Bond Anticipation Notes
In November 2007, the FCRHA issued a $105,485,000 of bond anticipation note (Series 2007B) to
finance a portion of the purchase price of a multi-family rental housing property as part of the
County’s affordable housing initiative. In October 2008, the FCRHA issued a $104,105,000 bond
anticipation note (Series 2008B) to repay the outstanding $105,485,000 bond anticipation note (Series
2007B). In August 2009, the FCRHA issued a $94,950,000 of revenue bonds to provide funds,
together with other funds, sufficient to pay the outstanding $104,105,000 short-term bond anticipation
note (Series 2008B) that matured on October 1, 2009. The bonds bear an average interest rate of 4.53
percent and mature on October 1, 2039. In August 2019, the FCRHA issued $61,795,000 to refund a
portion of the principal amount of the Series 2009 Bonds outstanding. As the County is responsible,
under the related documents and subject to annual appropriation, to make payments to a trustee
sufficient to pay principal and interest on these bonds, the related transactions, including the liability
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 137
for these bonds, have been recorded in the County’s financial statements and not in those of the
FCRHA.
In February 2008, the FCRHA issued a $37,615,000 refunding bond anticipation notes to repay a
portion of a 2007 short-term note that matured on February 12, 2008. The original short-term note
was issued to partially finance the purchase of a multi-family rental housing complex as part of the
County’s affordable housing initiative. In May 2011, the FCRHA issued $28,905,000 of bond
anticipation notes to current refund $30,215,000 of outstanding Series 2008A bond anticipation notes.
In February 2013, the FCRHA issued $24,650,000 of bond anticipation notes to current refund
$26,725,000 of outstanding Series 2011 bond anticipation notes. The note matured on March 1, 2015.
In February 2015, the County and FCRHA entered into a direct loan agreement with Bank of
America, N.A. in a principal amount of $18,260,000, which together with other County funds
refinanced the 2013A bond anticipation notes. In February 2018, FCRHA issued $11,175,000
Revenue Bonds Series 2018A (Federally Taxable), which together with other County funds
refinanced the FCRHA direct loan agreement with Bank of America, N.A. The County is obligated
by the terms of a payment agreement with FCRHA, subject to the appropriation of funds for the
purpose, to pay amounts equal to the interest on and the principal of the FCRHA 2018A revenue
bonds.
In December 2013, EDA and the County entered into a loan agreement with TD Bank, N.A., with the
proceeds of $25,000,000 being made available to the County to provide financing for the costs of the
planned replacement of the County-owned building subsystems such as roofs, electrical systems,
HVAC, plumbing systems, carpet replacement, parking lot and garage repairs, fire alarm replacement
and emergency generator replacement that have reached the end of their useful life. In March 2015,
the County received an additional $10,000,000 from TD Bank, N.A. under a loan agreement to
finance additional County building improvements. The $25,000,000 loan was retired in January
2019, and the $10,000,000 loan was retired in January 2020.
In December 2014, EDA utilized its revenue bond structure (Silver Line Phase II) Series 2014 to
enter into a loan agreement with the United States Department of Transportation for a Transportation
Infrastructure Financing and Innovation Act (TIFIA) loan in the principal amount up to $403,274,894
(plus capitalized interest). Proceeds from the TIFIA Loan will be used to finance the County’s share
of Phase II of the Silver Line Metrorail expansion. The County is obligated by a contract with the
EDA to pay amounts equal to debt service on the TIFIA loan. The County’s obligation to make such
payments is subject to the annual appropriation by the Board of sufficient funds for such purpose.
The terms of the TIFIA Bond provide for repayment of the loan to begin October 1, 2023 and end
April 1, 2046. As of June 30, 2021, the outstanding principal of the TIFIA Loan was $447,480,044.
Detailed information regarding the bond anticipation notes and notes payable outstanding as of June
30, 2021 is contained in Section 5 of this note.
5. County Debt and Related Interest to Maturity
The County’s outstanding general obligation bonds, revenue bonds, notes payable, HUD Section 108
loans, Sewer System revenue bonds, and the related interest to maturity as of June 30, 2021, are
comprised of the issues presented on the following pages:
BASIC FINANCIAL STATEMENTS
138 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Interest
Rate
(%)
Issue
Date
Final
Maturity
Date
Annual
Principal
Payments
(000)
Original
Issue
(000)
Principal
Outstanding
(000)
Interest
Payable to
Maturity
(000)
Total Principal
Outstanding &
Interest Payable
to Maturity
(000)
Governmental activities:
General obligation bonds:
General County:
Series 2009 E Public Improvement (BABs) 4.50-5.25 10-28-09 10-01-29 4,247 63,700 38,220 8,664 46,884
Series 2012 B Refunding 5.00 02-02-12 04-01-24 9,767-13,142 74,759 36,021 3,435 39,456
Series 2013 A Public Improvement 5.00 01-24-13 10-01-22 3,925 78,535 7,850 393 8,243
Series 2013 B Refunding 3.00-4.00 01-24-13 10-01-25 1,242-8,716 54,389 24,182 1,964 26,146
Series 2014 A Public Improvement 4.00-5.00 02-06-14 10-01-33 6,170 123,426 30,849 3,455 34,304
Series 2014 A Refunding 4.00-5.00 02-06-14 10-01-23 822-833 18,569 2,481 183 2,664
Series 2014 B Refunding 3.00-5.00 11-04-14 10-01-26 2,291-15,893 70,399 53,463 7,533 60,996
Series 2015 A Public Improvement 3.00-5.00 03-04-15 10-01-34 4,300-4,305 86,037 34,410 5,935 40,345
Series 2015 B Refunding 3.00-5.00 03-11-15 10-01-26 1,824-8,613 17,989 17,989 3,703 21,692
Series 2015 C Refunding 5.00 07-07-15 10-01-25 2,662-4,422 49,077 15,182 1,729 16,911
Series 2016 A Public Improvement 3.00-5.00 02-09-16 10-01-35 4,115 82,312 37,035 6,239 43,274
Series 2016 A Refunding 3.00-5.00 02-09-16 10-01-30 2,242-13,840 37,806 35,592 8,726 44,318
Series 2017 A Public Improvement 4.00-5.00 02-07-17 10-01-36 4,565-4,570 91,395 73,115 25,246 98,361
Series 2018 A Public Improvement 4.00-5.00 01-24-18 10-01-37 4,221-4,225 84,481 71,805 26,775 98,580
Series 2019 A Public Improvement 3.00-5.00 02-12-19 10-01-38 2,920-2,925 58,460 52,610 22,933 75,543
Series 2019 B Refunding 3.30-5.00 02-12-19 10-01-32 112-4,056 17,066 16,939 5,643 22,582
Series 2020 A Public Improvement 4.00-5.00 02-11-20 10-01-39 3,515-3,520 70,064 66,850 30,996 97,846
Series 2020 A Refunding 4.00-5.00 02-11-20 10-01-31 1,333-3,423 35,627 32,594 8,871 41,465
Series 2020 B Refunding 0.21-1.83 09-16-20 10-01-35 2,047-15,316 122,271 122,271 15,969 138,240
Series 2021 A Public Improvement 2.00-4.00 02-09-21 10-01-40 4,870-4,875 96,850 96,850 26,938 123,788
Total general obligation bonds - General County 1,333,212 866,308 215,330 1,081,638
Schools:
Series 2009 E Public Improvement (BABs) 4.50-5.25 10-28-09 10-01-29 9,233 138,500 83,100 18,838 101,938
Series 2012 B Refunding 5.00 02-02-12 04-01-24 14,742-21,058 117,591 56,809 5,368 62,177
Series 2013 A Public Improvement 5.00 01-24-13 10-01-22 6,390 127,800 12,780 639 13,419
Series 2013 B Refunding 3.00-4.00 01-24-13 10-01-25 1,518-11,969 73,611 31,243 2,519 33,762
Series 2014 A Public Improvement 4.00-5.00 02-06-14 10-01-33 7,045 140,904 35,226 3,945 39,171
Series 2014 A Refunding 4.00-5.00 02-06-14 10-01-23 1,553-1,572 33,411 4,684 344 5,028
Series 2014 B Refunding 3.00-5.00 11-04-14 10-01-26 6,626-28,423 131,791 95,377 12,568 107,945
Series 2015 A Public Improvement 3.00-5.00 03-04-15 10-01-34 7,065 141,303 56,520 9,750 66,270
Series 2015 B Refunding 3.00-5.00 03-11-15 10-01-26 4,736-19,772 39,081 39,081 7,920 47,001
Series 2015 C Refunding 5.00 07-07-15 10-01-25 3,253-7,468 90,438 20,628 2,167 22,795
Series 2016 A Public Improvement 3.00-5.00 02-09-16 10-01-35 6,735-6,740 134,728 60,630 10,213 70,843
Series 2016 A Refunding 3.00-5.00 02-09-16 10-01-30 5,819-27,125 81,134 75,388 18,348 93,736
Series 2017 A Public Improvement 4.00-5.00 02-07-17 10-01-36 6,845-6,850 136,980 109,580 37,836 147,416
Series 2018 A Public Improvement 4.00-5.00 01-24-18 10-01-37 6,755-6,760 135,160 114,880 42,841 157,721
Series 2019 A Public Improvement 3.00-5.00 02-12-19 10-01-38 7,810 156,200 140,580 61,309 201,889
Series 2019 B Refunding 3.30-5.00 02-12-19 10-01-32 183-6,604 27,784 27,576 9,187 36,763
Series 2020 A Public Improvement 4.00-5.00 02-11-20 10-01-39 7,210-7,215 143,861 137,075 63,576 200,651
Series 2020 A Refunding 4.00-5.00 02-11-20 10-01-31 2,427-6,233 64,833 59,311 16,143 75,454
Series 2020 B Refunding 0.21-1.83 09-16-20 10-01-35 2,863-21,890 171,789 171,789 23,246 195,035
Series 2021 A Public Improvement 2.00-4.00 02-09-21 10-01-40 6,955-7,915 157,340 157,340 43,765 201,105
Total general obligation bonds - Schools 2,244,239 1,489,597 390,522 1,880,119
Total general obligation bonds 3,577,451 2,355,905 605,852 2,961,757
Revenue bonds:
EDA revenue bonds:
Series 2012 A Refunding Laurel Hill Project 3.00-5.00 04-17-12 06-01-33 670-4,205 47,745 16,580 2,663 19,243
Series 2012 A Facilities Revenue Bonds 4.50 05-30-12 03-01-42 3,105-3,700 65,965 16,980 14,585 31,565
Series 2014 A Public Safety Facility Project 5.00 06-26-14 10-01-34 7,035-7,040 126,690 98,540 34,484 133,024
Series 2014 A County Facilities Refunding 5.00 06-26-14 10-01-34 1,765-3,385 44,000 34,925 13,632 48,557
Series 2014 B County Facilities Project 2.62-4.38 06-26-14 10-01-33 1,275-2,085 30,175 21,445 6,272 27,717
Series 2016 Silver Line Phase 1 Project 4.00-5.00 03-16-16 04-01-35 7,910-13,380 173,960 137,750 44,329 182,079
Series 2017 Metrorail Parking System Project 5.00 03-08-17 04-01-47 1,340-4,530 69,645 68,370 55,287 123,657
Series 2017A County Facilities Project 2.17-3.79 08-10-17 10-01-37 770-1,290 19,060 16,830 5,519 22,349
Series 2017B County Facilities Refunding 1.63-5.00 08-10-17 10-01-36 1,320-2,755 31,150 31,150 14,037 45,187
Series 2019 Six Public Facilities Refunding 3.25-4.13 04-23-19 04-01-32 1,175-1,725 18,125 15,870 4,441 20,311
Series 2020 Metrorail Station Parking Refunding 5.00 05-05-20 08-01-34 3,150-6,035 62,285 62,285 24,310 86,595
(Continued)
Series
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 139
(Continued)
Interest
Rate
(%)
Issue
Date
Final
Maturity
Date
Annual
Principal
Payments
(000)
Original
Issue
(000)
Principal
Outstanding
(000)
Interest
Payable to
Maturity
(000)
Total Principal
Outstanding &
Interest Payable
to Maturity
(000)
FCRHA lease revenue bonds:
Series 2018A Crescent 2.65-2.75 02-08-18 10-01-22 1,175-2,500 11,175 3,675 82 3,757
Series 2009 Wedgewood 5.00 08-13-19 10-01-39 1,940-4,765 61,795 59,950 32,908 92,858
VRA Subfund Revenue bonds:
Series 2013 C Linconia Project 4.40-5.13 11-20-13 10-01-33 555 11,085 7,215 2,182 9,397
CDA revenue bonds:
Series 2020 A Tax-Exempt 4.00 12-03-20 03-01-36 1,550-3,295 37,765 37,765 13,664 51,429
Series 2020 A Taxable 0.90-2.99 12-03-20 03-01-36 965-1,410 17,885 17,885 3,895 21,780
Total revenue bonds 828,505 647,215 272,290 919,505
Notes payables:
Salona 4.14-4.29 12-27-05 12-31-25 645 12,900 2,903 309 3,212
TIFIA Loan 2.73 12-17-14 04-01-46 4,462-8,003 403,275 447,480 3,012 450,492
Total notes payables 416,175 450,383 3,321 453,704
HUD Section 108 Loans:
HUD Section 108 loan #8 4.97-6.67 07-01-01 08-01-21 115 2,300 115 1 116
HUD Section 108 loan #12 Variable 02-14-11 08-01-30 343-344 6,535 3,439 541 3,980
Total HUD Section 108 loans 8,835 3,554 542 4,096
Total governmental activities 4,830,966 3,457,057 882,005 4,339,062
Business-type activities:
Sewer revenue bonds:
UOSA Bonds Subordinated 0.297-5.60 12-23-10 07-01-52 843-23,724 277,621 238,024 58,664 296,688
Series 2002 Subordinated 0.95 06-01-02 02-01-22 3,253 50,000 3,253 24 3,277
Series 2012 Revenue 5.00 08-08-12 07-15-21 2,055 90,710 2,055 51 2,106
Series 2014 Refunding 3.00-5.00 04-16-14 07-15-28 4,255-5,770 61,755 40,405 6,282 46,687
Series 2016 Refunding 3.00-5.00 05-12-16 07-15-39 3,950-12,950 164,450 160,635 64,281 224,916
Series 2017 Revenue 4.00-5.00 06-28-17 07-15-47 1,485-5,375 85,785 81,640 67,075 148,715
Series 2021A Revenue 4.00-5.00 06-09-21 07-15-51 3,130-11,545 191,990 191,990 163,528 355,518
Series 2021B Refunding 3.00-4.00 06-09-21 07-15-42 3,585-4,545 24,210 24,210 16,577 40,787
Total business-type activities 946,521 742,212 376,482 1,118,694
Total County bond, note, and loan indebtedness 5,777,487$ 4,199,269 1,258,487 5,457,756
Series
Principal and interest to maturity (in thousands) for the County’s general obligation bonds, revenue
bonds, loans, and Sewer System revenue bonds outstanding at June 30, 2021 are as follows:
Fiscal Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest
2022 213,570$ 90,345 37,430 29,668 1,104 3,229 32,113 23,452 284,217 146,694
2023 206,455 79,941 37,685 27,516 989 179 27,738 26,369 272,867 134,005
2024 194,795 70,729 34,100 25,872 448,469 143 31,868 25,317 709,232 122,061
2025 191,600 61,608 35,345 24,276 989 106 33,092 24,104 261,026 110,094
2026 181,240 53,778 36,620 22,622 667 67 41,489 22,876 260,016 99,343
2027-2031 742,935 172,539 204,215 86,149 1,719 140 155,339 97,787 1,104,208 356,615
2032-2036 452,905 65,903 182,330 38,261 - - 123,943 73,837 759,178 178,001
2037-2041 172,405 11,009 51,650 13,364 - - 137,756 48,066 361,811 72,439
2042-2046 - - 23,310 4,336 - - 79,637 25,623 102,947 29,959
2047-2051 - - 4,530 226 - - 66,624 8,788 71,154 9,014
2052-2056 - - - - - - 12,613 263 12,613 263
Totals 2,355,905$ 605,852 647,215 272,290 453,937 3,864 742,212 376,482 4,199,269 1,258,488
Total
Governmental Activities Business-Type
General Obligation
Bonds
Revenue
Bonds
Notes
and Loans
Sewer System
Revenue Bonds
BASIC FINANCIAL STATEMENTS
140 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
In July 2005, the City of Fairfax (the City) secured funding, for the construction of the New Library,
through the sale of 30 year EDA Lease Revenue Bonds for public improvements. Approximately,
$22,940,000 of the bond proceeds were allocated for the construction of the New Library. After the
new library was completed, the City transferred ownership to the County on January 13, 2009,
including all land and the new building. On January 22, 2009, the County transferred ownership to
the City for the existing library, including all land and the old building.
Annual requirements to amortize long-term obligations related to the library exchange are as follows:
Library Exchange
Fiscal Year C ontribution
2022 864,915$
2023 868,274
2024 871,646
2025 875,031
2026 878,429
2027-2031 4,443,582
2032-2035 3,617,393
Totals 12,419,270$
Governmental
Activities
6. FCRHA Bonds, Notes, and Loans Payable
In December 2018, the FCRHA issued a $20,000,000 Multifamily Housing Revenue Bond Note
(Series 2018) for the acquisition and rehabilitation of Murraygate Village Apartments by Murraygate
Village Limited Partnership (MVLP), a limited partner of the FCRHA. These bonds had an interest
rate of 2.26 percent. Also, in December 2018, the FCRHA issued a $30,000,000 Multifamily Housing
Revenue Bond Note (Series 2018) for the rehabilitation of Parkwood Apartments by Parkwood
Venture Limited Partnership, a limited partner of MRK Partners, Inc. These bonds had an interest
rate of 2.21percent and were fully redeemed on the due date of August 1, 2020. In August 2020, the
FCRHA issued a $4,000,000 Multifamily Housing Revenue Bond Note (Series 2020) for the
continued rehabilitation of Murraygate Village Apartments by MVLP. These bonds had an interest
rate of 0.65 percent.
The FCRHA issues various debt instruments, including bonds, notes and mortgages, to finance the
cost of acquisition, construction, and equipping of its workforce, senior, disabled, low income,
transient, and homeless affordable housing projects. These debt instruments are usually secured by
the properties being financed. Sources of permanent financing include the Federal Department of
Housing and Urban Development (HUD), the Virginia Housing Development Authority (VHDA),
commercial lenders, and the County.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 141
The table details all FCRHA bonds, notes (including a loan from the County), and loans payable as of
June 30, 2021, excluding FCRHA’s component units is presented as follows:
Secured By
Interest
Rate (%)
Issue
Date
Final
Maturity
Date
Annual
Principal
Payments
(000)
Original
Issue
(000)
Total
Principal
Outstanding
(000)
Housing Bonds Payable:
Mortgage revenue bonds Little River Glen rental property 4.65-6.10 08-29-96 09-01-26 $ 150-190 6,340$ 2,300$
Tax-exempt revenue bonds Herndon Harbor I - rental property 6.35 08-01-97 07-01-27 24-30 2,875 386
Multi-family revenue bonds Herndon Harbor II - rental property 4.875-6.0 05-01-99 05-01-29 44-56 2,000 926
Multi-family revenue bonds C edar Ridge Apartments 5.984 03-29-07 10-01-48 62-115 13,200 11,525
Multi-family revenue bonds Olley Glen - senior rental property average of 5.37% 08-26-08 08-01-51 30-355 12,220 4,549
Total mortgage bonds payable - FC RHA 58,335 19,686
Mortgage Notes Payable and Loan from County:
United Bank Faircrest North, Laurel Hill, Westcott
Ridge, Holly Acres, Legato C orner,
and Willow Oaks rental properties 6.21 01-01-07 12-01-21 54-65 2,998 1,830
East Market, Fair oaks, Bryson 6.14 12-06-07 12-01-22 15-22 856 553
Stockwell, Northampton, Halstead I & II 6.11 07-24-09 07-01-24 15-22 868 610
Sun Trust Bank Stonegate rental property 6.16 02-08-05 01-08-24 112 1,286 314
Virginia Housing Development First Stop Group Home property 7.61 08-01-06 03-01-25 - 385 126
Authority
Fulton Bank Morris Glen 8.50 01-01-14 04-01-26 26 322 181
Fairfax C ounty Redevelopment
and Housing Authority Herndon Harbour House I 2.00 varies 08-01-27 - 3,013 2,653
Herndon Harbour House II 2.00 varies 05-01-29 - 3,059 3,059
The Green rental property 3.37 varies 11-01-28 - 1,257 908
C astellani Meadows 4.00 varies 04-01-28 - 1,920 1,227
Tavenner 7.21 varies 01-01-27 - 2,042 778
Morris Glen varies varies varies - 2,272 1,409
Stonegate 1.00 varies 04-01-24 - 1,957 271
Total mortgage notes payable - FC RHA 22,235 13,919
Total public housing bonds, notes, and loans payable - FC RHA primary government 80,570$ 33,605$
Series
The FCRHA’s annual required principal and interest payments to maturity on the bonds, notes
(including a loan from the County), and loans payable, excluding FCRHA’s component units, at June
30, 2021, are presented below:
Fiscal Year Principal Interest Principal Interest Principal Interest
2022 715,457 1,051,197 2,047,125 180,699 2,762,582 1,231,896
2023 758,910 1,008,891 719,077 109,964 1,477,987 1,118,855
2024 803,781 964,020 730,894 82,274 1,534,675 1,046,294
2025 860,164 916,354 64,469 37,469 924,633 953,823
2026 908,145 865,496 1,462,777 645,616 2,370,922 1,511,112
2027-2031 2,704,242 3,712,977 8,624,508 5,335,198 11,328,750 9,048,175
2032-2036 2,379,842 3,128,250 270,500 - 2,650,342 3,128,250
2037-2041 3,164,859 2,415,277 - - 3,164,859 2,415,277
2042-2046 4,208,611 1,464,780 - - 4,208,611 1,464,780
2047-2051 3,182,071 348,039 - - 3,182,071 348,039
Totals 19,686,082$ 15,875,281 13,919,350 6,391,220 33,605,432 22,266,501
C omponent Unit - FC RHA (Primary Government)
Housing Bonds
Payable
Mortgage Notes Payable
and Loan from C ounty Total
BASIC FINANCIAL STATEMENTS
142 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
7. Park Authority Bonds, Loans, and Notes Payable
In February 1995, the Park Authority issued $13,870,000 of Park Facilities Revenue Bonds, Series
1995, to fund the construction of additional golf facilities for County residents and patrons. In
September 2001, the Park Authority issued $13,015,000 of Park Facilities Revenue Refunding Bonds,
Series 2001, with an average interest rate of 4.36 percent, to advance refund $11,670,000 of the
outstanding Series 1995 bonds with an average interest rate of 6.62 percent. Proceeds of $12,615,112
were used to purchase U.S. Government securities, which were deposited in an irrevocable escrow
fund to provide for the resources to redeem the Series 1995 Bonds on July 15, 2003. The outstanding
$7.02 million of Revenue Bonds Series 2001 was refunded on June 5, 2013 through the Virginia
Resources Authority bond sale of Series 2013, which resulted in a total debt service savings of $1.92
million. The bonds are solely the obligation of the Park Authority and were paid off in October 2020
of fiscal year 2021. As a result of this, the bond covenant which required to keep reserve in the Park
Improvement Fund, upon recommendation of the Executive Director, the Park Board approved
transfer into Park Revenue and Operating Fund to restore the net negative position caused due to the
COVID-19 pandemic.
In June 2003, the Park Authority received a $15,530,000 loan from the County to fund the
development and construction of a public golf course and related structures, facilities, and equipment
to be located in the Laurel Hill area of the southern part of the County. As a result of the refunding of
the Series 2003 Laurel Hill revenue bonds by the Fairfax County Economic Development Authority
in April 2012, the outstanding loan payable amount was reduced to $13,222,200.
The debt service requirements to maturity for the outstanding bonds and loan at June 30, 2021, are as
follows:
Principal Interest
2022 5.00 % 645,300$ 337,794
2023 3.00 714,100 305,529
2024 5.00 670,000 284,106
2025 3.00 740,000 250,606
2026 3.00 760,000 228,406
2027-2031 3.00-4.00 4,190,000 770,306
2032-2033 4.00 1,880,000 101,614
Totals 9,599,400$ 2,278,361
Int. Rate
Fiscal
Year
Loan from Primary Government
8. Conduit Debt Obligations
The FCRHA is empowered by the Commonwealth to issue tax-exempt bonds on behalf of qualified
businesses to develop or rehabilitate low-income housing within the County. Principal and interest on
the tax-exempt bonds are paid entirely by the owners of the properties, who have entered into binding
contracts to develop or rehabilitate the subject properties. The terms of the tax-exempt bonds
stipulate that neither the FCRHA nor the County guarantees the repayment of principal and interest to
the bondholders. A bondholder’s sole recourse in the event of default on the tax-exempt bonds is to
the subject property and third-party beneficiaries. Accordingly, these bonds are not reported as
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 143
liabilities in the accompanying financial statements. As of June 30, 2021, approximately $34.7
million of such tax-exempt bonds that are still outstanding.
In December 2018, the FCRHA issued a $30,000,000 Multifamily Housing Revenue Bond Note
(Series 2018) for the rehabilitation of Parkwood Apartments by Parkwood Venture Limited
Partnership, a limited partner of MRK Partners, Inc. These bonds had an interest rate of 2.21percent
and were fully redeemed on the due date of August 1, 2020.
The EDA is empowered by the Commonwealth to issue Industrial Revenue Bonds (IRBs) on behalf
of businesses relocating and/or expanding their operations within the County. Principal and interest
on the IRBs are paid entirely by the businesses. The terms of the IRBs stipulate that neither the EDA
nor the County guarantees the repayment of principal and interest to the bondholders. Accordingly,
these bonds are not reported as liabilities in the accompanying financial statements. As of June 30,
2021, the cumulative amount of all IRBs outstanding was $412,390,346.
In October 2003, August 2004, March 2007, and July 2008, the EDA issued $33,375,000,
$57,410,000, $41,505,000, and $51,505,000, respectively, of transportation contract revenue bonds
on behalf of the State Route 28 Transportation Improvement District for the purpose of financing a
portion of the costs of constructing certain improvements to State Route 28 in the County and in
Loudoun County, Virginia. In May 2012, the EDA issued $86,275,000 of transportation contract
revenue refunding bonds on behalf of the State Route 28 Transportation Improvement District to
advance refund $29,285,000 of outstanding Series 2003 bonds and $52,755,000 of outstanding Series
2004 bonds. In August 2016, the EDA issued $43,035,000 of transportation contract revenue
refunding bonds, Series 2016 A and $45,760,000 of transportation contract revenue refunding bonds,
Series 2016 B, on behalf of the State Route 28 Transportation Improvement District to advance
refund $41,505,000 of outstanding Series 2007A bonds and partially refund $43,660,000 of
outstanding principal of the Series 2008 Bonds, respectively, leaving $3,590,000 of the outstanding
principal of the Series 2008 bonds unrefunded. These bonds are payable primarily from a limited ad
valorem real property tax levied by the counties on property owners in the district. The bonds are
secured by a reserve subfund, and each County has agreed to cure one-half of any deficiency in the
reserve subfund. As neither the EDA nor the Counties are responsible to make principal or interest
payments on the bonds, neither reports a liability for the bonds. Rather, this liability for debt service
payments on the bonds rests with the State Route 28 Highway Transportation Improvement District.
As of June 30, 2021, the total outstanding principal amount of these transportation contract revenue
bonds outstanding was $150,040,000.
In the event of default, Trustees may proceed to protect and enforce its rights and rights of the State
Route 28 District’s Bond Holders under the Master Indenture, the Bond Acts and the Bonds by such
suits, actions, or proceedings provided, that any monetary remedies under the Master Indenture will
be limited to amounts, if any, from the Board’s Trust Estate, including but limited to civil actions to
recover monetary damages. The acceleration clause allows the lender, upon default, to accelerate
payment of the entire unpaid Bond principal and interest.
In December 2005, the Park Authority issued two notes totaling $12.9 million to finance the
acquisition of a permanent conservation easement. As the County is responsible, under the related
documents and subject to appropriation, to pay the principal and interest on the notes, the related
transactions, including the liability for the notes, have been recorded in the County’s financial
statements and not in those of the Park Authority. The notes are not general obligation debt of the
County, and the full faith and credit of the County is not pledged to the notes. As of June 30, 2021,
$2.9 million of these notes are outstanding.
BASIC FINANCIAL STATEMENTS
144 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
In the event of default, the Park Authority is not obligated to pay the instalments on these notes
except from the County payments pledged for such purpose. Neither the faith and credit nor the
taxing power of the County or Park Authority is pledged to the payments of installments on these
notes. The Park Authority has no taxing power.
9. Defeasance of Debt
Advance Refundings Resulting in Defeasance of Debt:
During the fiscal year, the County has defeased certain outstanding bonds by placing the proceeds of
newly issued bonds in an irrevocable escrow fund to provide for all future debt service payments on
the old bonds. Accordingly, the escrow fund assets and the liabilities for the defeased bonds are not
included in the financial statements. As of June 30, 2021, the outstanding bonds considered defeased
but not yet redeemed are $350.0 million in general obligation bonds and $17.5 million in revenue
bonds.
In-Substance Defeasance of Debt Using Only Existing Resources:
In FY2021, the County closed on a partially defeased certain EDA 2016 obligations associated with
the transportation district improvement bonds (Silver Line Phase 1 Project) using only existing
resources.
Following is the information on the nature of transaction:
Amount of debt extinguished $11,190,000
Amount placed in trust $12,998,824
Reason for defeasance To save $17.5 million of future
debt service payments.
C ash flows required to service the
defeased debt $13,428,000
Accordingly, the escrow fund assets and liabilities for the defeased bonds are not included in the
financial statements.
10. Sanitary Landfill Closure and Postclosure Obligation
The County is required to present Financial Assurance Requirements for any future closure and post-
closure expenditures related to the I-95 Sanitary Landfill, the I-66 Landfill, and the I-66 Transfer
Station by reporting an estimated financial assurance liability (closure and post-closure obligation).
The majority of the $49.4 million closure and post-closure obligation, as of June 30, 2021, is in
relation to the I-95 Landfill. State and federal regulations require the County to place final covers on
the I-95 Landfill at key points in time during the life of the disposal units, such as when final design
grades are reached and, ultimately, when the unit stops accepting solid waste. In addition,
maintenance of environmental infrastructure and monitoring of performance parameters are required
for 30 years after closure.
The I-95 Landfill consists of two major units: the Municipal Solid Waste (MSW) unit and the Area
Three Lined Landfill (ATLL) unit. The MSW unit stopped accepting waste on December 31, 1995
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 145
and the final closure cap, Phase IV, was completed during 2007. As of December 31, 2007, all
closure costs associated with the MSW unit were complete and no post-closure costs are anticipated
until I-95 Landfill facility reaches capacity. The ATLL unit is active and continues to accept
incinerator ash generated from the thermal processing of municipal solid waste at the Fairfax and
Arlington/Alexandria Waste-To-Energy facilities. Closure expenditures for approximately 17 percent
of the permitted ATLL cap area have been incurred for the ATLL unit. The County holds permits
allowing it to continue to dispose of ash in the ATLL unit until it reaches capacity, currently
estimated to occur in approximately 2057.
The closure and post-closure obligation for the I-95 Landfill, as of June 30, 2021, is $48.1 million.
The amount represents closure and post-closure obligation for ATLL unit and post-closure obligation
for MSW unit. The actual cost may vary due to inflation, changes in technology, or changes in
regulations. It is expected that the landfill closure and post-closure care costs will be funded from
existing resources in the I-95 Refuse Disposal Fund.
A $1.3 million obligation was estimated for long-term operational maintenance expenditures related
to the landfill gas collection system at the closed I-66 Landfill and for the closure and post-closure
expenditures related to the I-66 Transfer Station.
11. Obligations Under Capital Leases and Installment Purchases
The reporting entity has financed the acquisition of certain capital assets, including a satellite
government center, buses, computer equipment, copier machines, and trailers, by entering into capital
lease and installment purchase agreements. The balance of capital assets, net, and the minimum
obligations under these capital lease and installment purchase agreements as of June 30, 2021, are as
follows:
Asset C lass
Primary Government -
Governmental
Activities
C omponent Unit -
Public Schools
Land -$ 6,000,000
Buildings - 56,910,185
Improvements 2,106,288 -
Equipment 34,107,780 118,421,051
Total assets, at cost 36,214,068 181,331,236
Accumulated depreciation (33,544,775) (48,924,920)
Total assets, net 2,669,293$ 132,406,316
Fiscal Year Minimum Obligations Minimum Obligations
2022 1,236,381$ 31,221,348
2023 1,241,700 23,943,997
2024 276,722 21,521,904
2025 282,257 13,627,309
2026 47,197 4,230,496
2027-2031 - 17,342,375
2032-2035 - 13,871,875
Total minimum obligations 3,084,257 125,759,304
Portion representing interest (91,700) (15,966,999)
Present value of minimum obligations 2,992,557$ 109,792,305
BASIC FINANCIAL STATEMENTS
146 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
The County is the lessor in a direct financing lease with Public Schools for an administrative office
building and related land. The lease is structured so that Public Schools will make annual lease
payments over 30 years equal to the County’s required debt service payments on the Series 2005
Facilities Revenue Bonds (see Note J-2). The County will transfer ownership of the building to
Public Schools once all the lease obligations are satisfied. The total future minimum lease payments
receivable is $34.9 million and unearned revenue in the amount of $34.9 million is reported.
Minimum lease payments for each of the five succeeding fiscal years are $1,765,000, $1,855,000,
$1,955,000, $2,050,000, and $2,160,000 respectively.
K. LONG-TERM COMMITMENTS
1. Washington Metropolitan Area Transit Authority (WMATA)
The County’s commitments to WMATA are comprised of agreements to make capital contributions
for the construction of rail lines and for the acquisition, replacement, and renovation of transit
equipment and facilities and to provide operating subsidies for its rail, bus, and paratransit systems.
The County’s commitments in each of these areas are summarized as follows:
Capital Contributions – Transit Equipment and Facilities
Each fiscal year, the County and other local jurisdictions make contributions for WMATA’s
acquisition, replacement, and rehabilitation of transit equipment and facilities and for the debt service
on federally guaranteed transit revenue bonds issued by WMATA. The County’s obligation of
approximately $46.9 million for fiscal year 2021 was funded with $42.0 million of County general
obligation bond proceeds and $4.9 million of County funds. It is anticipated that the County’s
obligation for fiscal year 2022 will amount to $47.6 million and be funded with $41.0 million from
County general obligation bond proceeds and $6.6 million of County funds.
Operating Subsidies
The County and other local jurisdictions contribute annually toward WMATA’s deficits resulting
from the operation of its rail, bus, and paratransit systems. For fiscal year 2021, the County’s
obligation of approximately $152.8 million for operating subsidies was offset by a $26.3 million
credit allocated by WMATA as part of the CARES Act. This resulted in a net obligation of $126.5
million, which was funded with $35.4 million of County funds and $91.1 million from state aid and
regional gasoline tax receipts provided through the NVTC. It is anticipated that the County’s
obligation for fiscal year 2022 will amount to $152.1 million and be funded with $117.0 million of
state aid and regional gasoline tax receipts provided through the NVTC and $35.1 million of County
funds.
The state aid discussed in both Capital Contributions and Operating subsidies is shown passing
through the County and Regional Transportation Projects Fund but is transmitted to NVTC directly
from the Commonwealth.
2. Virginia Railway Express (VRE)
The County, as a member of the NVTC and in cooperation with the Potomac and Rappahannock
Transportation Commission (PRTC), is a participating jurisdiction in the operation of the VRE
commuter rail service. The service primarily consists of rush hour trips originating from Manassas,
Virginia and from Fredericksburg, Virginia to Union Station in Washington, DC. There are five
stations in Fairfax County.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 147
In October 1989, the Board approved the Commuter Rail Master Agreement and financial plans.
These have subsequently been amended to reflect voting criteria for member jurisdictions, new
member requirements, and fairness in the subsidy allocation formula which took effect for fiscal year
2008. The Board approved this Amended Master Agreement on September 10, 2007, which required
the County to contribute to capital, operating, and debt service costs of the VRE on a pro rata basis
according to its share of ridership. The County’s fiscal year 2021 contribution to the VRE was $6.4
million.
3. Operating Lease Commitments
The County, Public Schools, and the EDA have entered into various long-term lease agreements for
real estate and equipment. Certain real estate leases contain provisions which allow for increased
rentals based upon increases in real estate taxes and the Consumer Price Index. All lease obligations
are contingent upon the Board appropriating funds for each fiscal year’s payments. For fiscal year
2021, the County’s, Public Schools’, and EDA’s total expenditures for these operating leases were
$18.4 million, $3.3 million, and $0.5 million, respectively. At June 30, 2021, the minimum long-term
lease commitments accounted for as operating leases are as follows:
Primary Government
Fiscal Year Governmental Activities Public Schools EDA
2022 16,392,746$ 6,204,729 800,462
2023 15,365,698 7,084,894 274,187
2024 12,558,429 6,179,356 -
2025 11,213,033 6,400,250 -
2026 5,296,729 6,709,251 -
2027-2031 6,717,309 7,034,993 -
2032-2036 335,722 - -
2037-2041 254,915 - -
2042-2046 310,143 - -
Total 68,444,724$ 39,613,473 1,074,649
C omponent Units
4. Intermunicipal Agreements
City of Alexandria, Virginia Renew Enterprises
The Sewer System is obligated under an agreement with the City of Alexandria, Alexandria Renew
Enterprises (ARE) to share in the construction and operating costs and debt service requirements for
ARE’s sewage treatment facility. Currently, the Sewer System has a capacity entitlement of 32.4
MGD, which is 60 percent of the facility’s total capacity of 54 MGD. Although the Sewer System is
allowed one nonvoting representative at the meetings of ARE, the Sewer System has no significant
influence in the management of the treatment facility. In addition, the Sewer System has no direct
ongoing equity interest in the assets or liabilities of ARE.
The ARE facility is currently undergoing major improvements to meet new water quality standards.
The Sewer System paid ARE $19.7 million for purchased capacity in fiscal year 2021 to fund its
share of the construction and land acquisition costs. The Sewer System estimates its share of the
remaining construction costs to be $103.0 million, of which $20.3 million is expected to be incurred
in fiscal year 2022 and the remaining balance over fiscal years 2023 to 2030. In addition, the Sewer
System made payments of $11.3 million to ARE during fiscal year 2021 for its share of ARE’s
operating costs.
BASIC FINANCIAL STATEMENTS
148 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
District of Columbia Water and Sewer Authority
The Sewer System is obligated under the 2012 Blue Plains Intermunicipal Agreement, between the
County; the District of Columbia (District); District of Columbia Water and Sewer Authority (DC
Water); Montgomery County, Maryland; Prince George’s County, Maryland; and the Washington
Suburban Sanitary Commission, to share the construction and operating costs of the Blue Plains
Wastewater Treatment Plant, which is operated by DC Water. Currently, the Sewer System has a
capacity entitlement of 31 MGD, which is approximately 8.4 percent of the Plant’s total capacity of
370 MGD. DC Water has a Board of Directors comprised of six members from the District, two each
from Montgomery and Prince George’s Counties, and one from the County. The County has no
significant control over plant operations and construction and no ownership interest in the assets of
DC Water.
The Blue Plains Plant is currently undergoing a major renovation of its nitrogen removal facilities
along with the constructions of new wet weather flow facilities. The Sewer System paid DC Water
$10.6 million for purchased capacity during fiscal year 2021 to fund its share of construction costs.
The Sewer System estimates its share of the remaining construction costs to be $232.3 million, of
which $21.7 million is expected to be incurred in fiscal year 2022 and the remaining balance over
fiscal years 2023 to 2030. In addition, the Sewer System made payments of $15.3 million to DC
Water during fiscal year 2021 for its share of the Blue Plains Plant’s operating costs.
Upper Occoquan Service Authority
As described in Note A, UOSA is a joint venture created under the provisions of the Virginia Water
and Waste Authorities Act to be the single regional entity to finance, construct, and operate the
regional sewage treatment facility for the upper portion of the Occoquan Watershed. Currently, the
Sewer System has a capacity entitlement of 22.1 MGD, which is approximately 41 percent of this
facility’s total capacity of 54.0 MGD. The governing body of UOSA is an eight member board of
directors consisting of two members from each participating jurisdiction, appointed to four year
terms.
UOSA’s current operating expenses, construction costs, and annual debt service payments are funded
by each of the participating jurisdictions based on their allocated capacity, with certain modifications.
The Sewer System made contractual service payments to UOSA of $13.5 million in fiscal year 2021
to pay its share of UOSA’s operating costs.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 149
Summarized UOSA financial information as of and for the years ended June 30, 2020 and 2019 (the
most recent audited financial information available), is as follows:
2020 2019
Total assets 579,854,777$ 541,889,848
Deferred outflows of resources 17,674,213 18,654,337
Total liabilities (554,186,450) (510,699,952)
Deferred inflows of resources (2,274,841) (2,993,994)
Net position 41,067,699$ 46,850,239
Operating revenues 30,622,512$ 30,236,345
Operating expenses (59,493,683) (57,835,443)
Nonoperating revenues, net 3,787,368 4,900,451
C apital contributions 19,301,263 18,696,500
Decrease in net position (5,782,540)$ (4,002,147)
Total net position, beginning of year 46,850,239 50,852,386
Total net position, end of year 41,067,699$ 46,850,239
Arlington County, Virginia
The Sewer System is obligated under an agreement with Arlington County, Virginia to share the
construction and operating costs of the sewage treatment facility owned and operated by Arlington
County. Currently, the Sewer System has a capacity entitlement of 3 MGD, which is 7.5 percent of
the facility’s total capacity of 40 MGD. The Sewer System has no significant influence over the
management of the treatment facility and no direct on-going equity interest in the facility’s assets and
liabilities.
The Arlington facility has recently completed a major upgrade to meet new water quality standards.
The Sewer System paid Arlington $0.3 million for purchased capacity in fiscal year 2021. The Sewer
System estimates its share of the remaining construction costs to be $15.6 million, of which $1.6
million is expected to be incurred in fiscal year 2022 and the remaining balance over fiscal years 2023
to 2030. In addition, the Sewer System made payments of $2.6 million for contractual services to
Arlington during fiscal year 2021 for its share of Arlington’s operating costs.
Loudoun County, Virginia
The Sewer System is obligated under an agreement with Loudoun County, Virginia to share the
construction costs, operating costs, and debt service payments for the sewage treatment facility owned
and operated by Loudoun Water. Currently, the Sewer System has a capacity entitlement of 1.0
MGD, which is 9.0 percent of the facility’s total capacity of 11 MGD. The Sewer System has no
significant influence over the management of the treatment facility and no direct on-going equity
interest in the facility’s assets and liabilities.
The System did not pay any operating cost to Loudoun Water in fiscal year 2021. The System will
incur operating costs once it starts to deliver flows to Loudoun Water’s facilities, which is not
expected to start in fiscal year 2022.
5. Long-term Contracts
At June 30, 2021, the Primary Government had contractual commitments of $169,960,117 in the
capital projects funds and $86,554,531 in the Sewer System for the construction of various sewer
BASIC FINANCIAL STATEMENTS
150 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
projects. At June 30, 2021, the component units had contractual commitments of $212,170,954 and
$8,196,664 in the capital projects funds of the Public Schools and the Park Authority, respectively,
for the construction of various projects.
L. CONTINGENT LIABILITIES
The County is contingently liable with respect to lawsuits and other claims that arise in the ordinary course of
its operations. Although the outcome of these matters is not presently determinable, in the opinion of County
management, the resolution of these matters will not have a material adverse effect on the County’s financial
condition.
The County receives grant funds, principally from the federal government, which benefit programs across
many functional areas. Certain expenditures of these funds are subject to audit by the grantor, and the County
is contingently liable to refund amounts received in excess of allowable expenditures. In the opinion of
County management, no material refunds will be required as a result of expenditures disallowed by the
grantors.
M. IMPLEMENTATION OF NEW ACCOUNTING PRONOUNCEMENTS
In Fiscal Year 2022 the County implemented the following GASB Standards:
No. 84, Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how those activities should be reported.
As a result of this change in accounting standard, a prior period adjustment was recorded to report fiduciary
net position, as shown below for the County:
Total Assets 2,698,664$ 1,628 482,543 3,182,835$
Total Liabilities 2,698,664 (1,857,649) 400,607 1,241,622
-$ 1,859,277 81,936 1,941,213$
Prior Period
Adjustment
GASB 84
Implementation
Statement of
Fiduciary Assets and
Liabilities
June 30, 2020
Statement in
Fiduciary Net Position
July 30, 2021
Net increase in
Fiduciary Net
Position
FCPS previously reported the activity of the Student Activity Fund as a fiduciary fund. Beginning in fiscal
year 2021, such activity has been more appropriately reported in the General Fund of the Component Unit.
Due to the implementation of this Statement, a prior period adjustment of $23.0 million was reported,
resulting in a restated net position in FCPS’s Governmental Activities and the County’s Reporting Entity to
($736.1) million and $853.1 million, respectively.
No. 98, The Annual Comprehensive Financial Report
This Statement establishes the term annual comprehensive financial report and its acronym ACFR. The new
term and acronym replaces instances of comprehensive annual financial report and its acronym in generally
accepted accounting principles for state and local governments.
The implementation of these standards did not have a material impact on the County’s financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FINANCIAL SECTION 151
N. RESTATEMENT
Change in Reporting Entity - The FCRHA previously reported Morris Glen L.P. real estate partnership as a
discretely presented component unit in which it was the general partner. The FCRHA now controls the entire
partnership interest for this partnership and has therefore considered it to be a blended component unit in
accordance with GAAP. The partnership has a December 31 year-end, therefore amounts included for the
entity are as of and for the calendar year-end that falls within FCRHA’s fiscal year ended June 30, 2020.
Beginning net position has been restated to adjust net position by the deficit of $1,099,894 for this
partnership.
2020 FC RHA net position, as previously reported 159,328,967$
Restatement - change in reporting entity (1,099,894)
Restatement - correction of error 6,852,549
Elimination of FC RHA intercompany receivable (681,381)
Elimination of FC RHA intercompany payable 681,381
2020 FC RHA net position - as restated 165,081,622$
2020 C omponent Units net position, as previously reported (3,351,893)$
Restatement - change in reporting entit 1,099,894
2020 C omponent Units net position - as restated (2,251,999)$
Correction of an Error - The FCRHA restated beginning net position by $6,852,549 for the blended
component units to correct the basis of accounting treatment of forgivable loans.
BASIC FINANCIAL STATEMENTS
152 COUNTY OF FAIRFAX, VIRGINIA ANNUAL COMPREHENSIVE FINANCIAL REPORT
Required
Supplementary Information
he Required Supplementary Information
subsection includes the budgetary comparison
schedule for the County of Fairfax’s major fund, the
General Fund. It also includes trend data, related to the
pension trust funds and OPEB plans of the County of
Fairfax and the Fairfax County Public Schools component
unit. The notes to required supplementary information are
also included in this subsection.
T
153Financial Section
Required Supplementary Information
County of Fairfax, Virginia Budgetary Comparison Schedule - General Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final
3,919,200,759$ 3,956,920,894 3,987,017,016 30,096,122 49,642,908 50,227,871 57,076,113 6,848,242
352,948,719 463,482,704 465,276,053 1,793,349 83,119,246 32,818,852 33,695,016 876,164 11,795,664 5,354,518 5,477,214 122,696 24,257,799 24,257,799 24,776,135 518,336 16,234,444 14,441,507 18,312,163 3,870,656
4,457,199,539 4,547,504,145 4,591,629,710 44,125,565
General government administration 124,977,518 131,636,528 123,596,105 8,040,423 Judicial administration 42,550,728 44,393,223 41,126,669 3,266,554 Public safety 535,709,328 548,272,058 522,006,631 26,265,427 Public works 79,689,075 84,167,910 76,537,605 7,630,305 Health and welfare 302,024,376 303,394,049 253,037,903 50,356,146 C ommunity development 74,527,304 80,775,907 73,989,714 6,786,193 Parks, recreation, and cultural 57,746,666 58,621,543 54,573,647 4,047,896 Nondepartmental 411,405,158 667,944,856 510,442,827 157,502,029
1,628,630,153 1,919,206,074 1,655,311,101 263,894,973
Excess of revenues over expenditures 2,828,569,386 2,628,298,071 2,936,318,609 308,020,538
8,707,781 8,707,781 8,707,781 - (684,982,808) (741,663,523) (741,663,523) -
(2,158,308,206) (2,163,249,143) (2,163,249,143) -
(2,834,583,233) (2,896,204,885) (2,896,204,885) -
(6,013,847)$ (267,906,814) 40,113,724 308,020,538 See accompanying notes to required supplementary information.
Revenue from the use of money and property
Budgeted Amounts
Variance from Final Budget
Positive (Negative)
REVENUES
Actual Amounts (Budget Basis)
Taxes Permits, privilege fees, and regulatory licenses Intergovernmental C harges for services Fines and forfeitures
Recovered costs
Total revenues EXPENDITURES
Total expenditures
Net change in fund balance
OTHER FINANCING SOURCES (USES) Transfers in from other primary government funds Transfers out to other primary government funds Transfers out to component units
Total other financing (uses), net
154
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Schedule of Changes in Net Pension Liability and Related Ratios - Employees’ Retirement System Last Ten Fiscal Years * (Dollar amounts in thousands)
County of Fairfax, Virginia
AC FR Reporting Year Measurement Date June 30 of prior year 2021 2020 2019
Total Pension Liability Service cost 103,313$ 99,759 96,662 Interest 415,149 400,860 385,505 C hanges in benefit terms - - 603 Differences between expected and actual experience (5,461) 29,355 41,363 C hanges of assumptions - - - Benefit payments, including refunds of member contributions (343,616) (329,517) (300,641)
Net change in total pension liability 169,385 200,457 223,492
Total pension liability - beginning 5,791,681 5,591,224 5,367,732 Total pension liability - ending 5,961,066$ 5,791,681 5,591,224
Plan Fiduciary Net Position C ontributions - employer 234,743$ 210,964 188,578 C ontributions - member 40,327 37,916 36,358 Net investment income 111,442 243,546 269,418 Benefit payments, including refunds of member contributions (343,616) (329,517) (300,641) Administrative expense (2,471) (2,198) (2,171)
Net change in plan fiduciary net position 40,425 160,711 191,542
Plan fiduciary net position - beginning 4,101,638 3,940,927 3,749,385 Plan fiduciary net position - ending 4,142,063$ 4,101,638 3,940,927
Net pension liability - ending 1,819,003$ 1,690,043 1,650,297
Plan fiduciary net position as a percentage of the total pension liability 69.49 % 70.82 % 70.48 % C overed payroll 828,020$ 777,319 745,664 Net pension liability as a percentage of covered payroll 219.68 % 217.42 % 221.32 %
* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
155Financial Section
Required Supplementary Information
2018 2017 2016 2015 Total Pension Liability
93,128 85,499 84,154 84,075 Service cost 367,586 361,074 353,622 340,920 Interest
582 773 1,463 - C hanges in benefit terms
74,948 (104,260) (8,617) - Differences between expected and actual experience
- 68,573 - - C hanges of assumptions
(284,929) (274,902) (258,835) (238,562) Benefit payments, including refunds of member contributions
251,315 136,757 171,787 186,433 Net change in total pension liability
5,116,417 4,979,660 4,807,873 4,621,440 Total pension liability - beginning 5,367,732 5,116,417 4,979,660 4,807,873 Total pension liability - ending
Plan Fiduciary Net Position 167,312 155,780 138,493 129,618 C ontributions - employer 35,476 34,627 33,194 32,759 C ontributions - member
243,496 (16,668) 16,342 490,196 Net investment income
(284,931) (274,902) (258,835) (238,560) Benefit payments, including refunds of member contributions
(2,050) (2,112) (1,897) (1,885) Administrative expense 159,303 (103,275) (72,703) 412,128 Net change in plan fiduciary net position
3,590,082 3,693,357 3,766,060 3,353,932 Plan fiduciary net position - beginning 3,749,385 3,590,082 3,693,357 3,766,060 Plan fiduciary net position - ending
1,618,347 1,526,335 1,286,303 1,041,813 Net pension liability - ending
69.85 % 70.17 % 74.17 % 78.33 % Plan fiduciary net position as a percentage of the total pension liability
730,618 708,415 686,289 671,597 C overed payroll
221.50 % 215.46 % 187.43 % 155.12 % Net pension liability as a percentage of covered payroll
156
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Changes in Net Pension Liability and Related Ratios - Police Officers Retirement System Last Ten Fiscal Years * (Dollar amounts in thousands)
AC FR Reporting Year Measurement Date June 30 of prior year 2021 2020 2019
Total Pension Liability Service cost 32,944$ 31,993 30,744 Interest 128,461 123,663 118,405 Differences between expected and actual experience (5,785) (7,959) 1,315 C hanges of assumptions - - - Benefit payments, including refunds of member contributions (84,449) (80,576) (77,838)
Net change in total pension liability 71,171 67,121 72,626
Total pension liability - beginning 1,780,416 1,713,295 1,640,669 Total pension liability - ending 1,851,587$ 1,780,416 1,713,295
Plan Fiduciary Net Position C ontributions - employer 50,781$ 47,183 44,505 C ontributions - member 10,570 10,177 9,896 Net investment income (59,355) 71,578 94,135 Benefit payments, including refunds of member contributions (84,449) (80,576) (77,838) Administrative expense (656) (611) (619)
Net change in plan fiduciary net position (83,109) 47,751 70,079
Plan fiduciary net position - beginning 1,483,674 1,435,923 1,365,844 Plan fiduciary net position - ending 1,400,565$ 1,483,674 1,435,923
Net pension liability - ending 451,022$ 296,742 277,372
Plan fiduciary net position as a percentage of the total pension liability 75.64 % 83.33 % 83.81 % C overed payroll 122,071$ 117,663 114,173 Net pension liability as a percentage of covered payroll 369.48 % 252.20 % 242.94 %
* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
157Financial Section
Required Supplementary Information
2018 2017 2016 2015 Total Pension Liability
29,052 30,913 30,390 30,859 Service cost 112,638 110,362 106,740 102,492 Interest
11,638 (30,821) (11,516) - Differences between expected and actual experience
- 9,895 - - C hanges of assumptions
(73,175) (70,750) (67,757) (62,288) Benefit payments, including refunds of member contributions
80,153 49,599 57,857 71,063 Net change in total pension liability
1,560,516 1,510,917 1,453,060 1,381,997 Total pension liability - beginning 1,640,669 1,560,516 1,510,917 1,453,060 Total pension liability - ending
Plan Fiduciary Net Position 43,381 40,647 37,867 34,179 C ontributions - employer 9,632 9,324 8,890 10,091 C ontributions - member
116,099 10,764 41,601 176,684 Net investment income
(73,176) (70,750) (67,757) (62,288) Benefit payments, including refunds of member contributions
(481) (511) (443) (431) Administrative expense 95,455 (10,526) 20,158 158,235 Net change in plan fiduciary net position
1,270,389 1,280,915 1,260,757 1,102,522 Plan fiduciary net position - beginning 1,365,844 1,270,389 1,280,915 1,260,757 Plan fiduciary net position - ending
274,825 290,127 230,002 192,303 Net pension liability - ending
83.25 % 81.41 % 84.78 % 86.77 % Plan fiduciary net position as a percentage of the total pension liability
111,291 107,022 102,844 100,912 C overed payroll
246.94 % 271.09 % 223.64 % 190.57 % Net pension liability as a percentage of covered payroll
158
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Changes in Net Pension Liability and Related Ratios - Uniformed Retirement System Last Ten Fiscal Years * (Dollar amounts in thousands)
AC FR Reporting Year Measurement Date June 30 of prior year 2021 2020 2019
Total Pension Liability Service cost 43,435$ 43,537 42,115 Interest 159,360 153,521 147,114 C hanges in benefit terms - - 956 Differences between expected and actual experience (6,625) (7,935) (1,128) C hanges of assumptions - - - Benefit payments, including refunds of member contributions (111,543) (105,543) (96,896)
Net change in total pension liability 84,627 83,580 92,161
Total pension liability - beginning 2,209,430 2,125,850 2,033,689 Total pension liability - ending 2,294,057$ 2,209,430 2,125,850
Plan Fiduciary Net Position C ontributions - employer 69,931$ 69,246 67,895 C ontributions - member 12,810 12,605 12,262 Net investment income (22,161) 78,142 131,997 Benefit payments, including refunds of member contributions (111,543) (105,543) (96,896) Administrative expense (667) (620) (618)
Net change in plan fiduciary net position (51,630) 53,830 114,640
Plan fiduciary net position - beginning 1,813,733 1,759,903 1,645,263 Plan fiduciary net position - ending 1,762,103$ 1,813,733 1,759,903
Net pension liability - ending 531,954$ 395,697 365,947
Plan fiduciary net position as a percentage of the total pension liability 76.81 % 82.09 % 82.79 % C overed payroll 180,049$ 178,285 174,808 Net pension liability as a percentage of covered payroll 295.45 % 221.95 % 209.34 %
* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
159Financial Section
Required Supplementary Information
2018 2017 2016 2015 Total Pension Liability
39,668 43,408 41,721 39,648 Service cost 140,286 136,679 132,951 125,660 Interest
839 806 1,702 - C hanges in benefit terms
6,048 (54,054) 11,019 - Differences between expected and actual experience
- 20,479 - - C hanges of assumptions
(93,609) (90,536) (84,849) (78,918) Benefit payments, including refunds of member contributions
93,232 56,782 102,544 86,390 Net change in total pension liability
1,940,457 1,883,675 1,781,131 1,694,741 Total pension liability - beginning 2,033,689 1,940,457 1,883,675 1,781,131 Total pension liability - ending
Plan Fiduciary Net Position 67,410 65,548 60,928 56,095 C ontributions - employer 12,223 12,020 11,473 10,906 C ontributions - member
161,014 (13,447) 21,800 210,256 Net investment income
(93,609) (90,536) (84,849) (78,917) Benefit payments, including refunds of member contributions
(477) (500) (455) (434) Administrative expense 146,561 (26,915) 8,897 197,906 Net change in plan fiduciary net position
1,498,702 1,525,617 1,516,720 1,318,814 Plan fiduciary net position - beginning 1,645,263 1,498,702 1,525,617 1,516,720 Plan fiduciary net position - ending
388,426 441,755 358,058 264,411 Net pension liability - ending
80.90 % 77.23 % 80.99 % 85.15 % Plan fiduciary net position as a percentage of the total pension liability
173,604 168,808 160,762 153,979 C overed payroll
223.74 % 261.69 % 222.73 % 171.72 % Net pension liability as a percentage of covered payroll
160
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Changes in Net Pension Liability and Related Ratios - Educational Employees Supplementary Retirement System Last Ten Fiscal Years * (Dollar amounts in thousands)
AC FR Reporting Year Measurement Date June 30 of prior year 2021 2020 2019
Total Pension Liability Service cost 92,719$ 90,633 88,599 Interest 243,579 231,477 221,107 C hanges in benefit terms - - - Differences between expected and actual experience (12,696) 27,727 12,141 C hanges of assumptions - - - Benefit payments, including refunds of member contributions (185,986) (181,932) (177,720)
Net change in total pension liability 137,616 167,905 144,127
Total pension liability - beginning 3,406,341 3,238,436 3,094,309 Total pension liability - ending 3,543,957$ 3,406,341 3,238,436
Plan Fiduciary Net Position C ontributions - employer 104,741$ 96,983 91,705 C ontributions - member 49,096 46,645 44,169 Net investment income 108,472 117,728 188,145 Benefit payments, including refunds of member contributions (185,986) (181,932) (177,720) Administrative expense (4,381) (4,262) (4,300)
Net change in plan fiduciary net position 71,942 75,162 141,999
Plan fiduciary net position - beginning 2,521,442 2,446,280 2,304,281 Plan fiduciary net position - ending 2,593,384$ 2,521,442 2,446,280
Net pension liability - ending 950,573$ 884,899 792,156
Plan fiduciary net position as a percentage of the total pension liability 73.18 % 74.02 % 75.54 % C overed payroll 1,626,417$ 1,549,248 1,469,629 Net pension liability as a percentage of covered payroll 58.45 % 57.12 % 53.90 %
* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
161Financial Section
Required Supplementary Information
2018 2017 2016 2015 Total Pension Liability
78,926 77,761 77,494 75,788 Service cost 209,516 205,720 198,939 192,724 Interest
(1,039) - - - C hanges in benefit terms
19,857 (11,012) (17,051) (19,052) Differences between expected and actual experience
23,334 45,752 - - C hanges of assumptions
(173,386) (170,348) (167,843) (167,050) Benefit payments, including refunds of member contributions
157,208 147,873 91,539 82,410 Net change in total pension liability
2,937,101 2,789,228 2,697,689 2,615,279 Total pension liability - beginning 3,094,309 2,937,101 2,789,228 2,697,689 Total pension liability - ending
Plan Fiduciary Net Position 80,094 76,600 74,324 74,174 C ontributions - employer 43,063 41,384 39,983 40,018 C ontributions - member
250,982 (15,767) 32,085 304,641 Net investment income
(173,386) (170,348) (167,843) (167,050) Benefit payments, including refunds of member contributions
(4,060) (4,005) (3,752) (3,629) Administrative expense 196,693 (72,136) (25,203) 248,154 Net change in plan fiduciary net position
2,107,588 2,179,724 2,204,927 1,956,773 Plan fiduciary net position - beginning 2,304,281 2,107,588 2,179,724 2,204,927 Plan fiduciary net position - ending
790,028 829,513 609,504 492,762 Net pension liability - ending
74.47 % 71.76 % 78.15 % 81.73 % Plan fiduciary net position as a percentage of the total pension liability
1,430,260 1,374,735 1,366,030 1,324,537 C overed payroll
55.24 % 60.34 % 44.62 % 37.20 % Net pension liability as a percentage of covered payroll
162
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Net Pension Liability-Single Employer Plans Last Ten Fiscal Years * (Dollar amounts in thousands)
AC FR Reporting Year Measurement Date June 30 of prior year 2021 2020 2019
Employees' Retirement System: Total pension liability 5,961,066$ 5,791,681 5,591,224 Pension plan's fiduciary net position 4,142,063 4,101,638 3,940,927 Net pension liability 1,819,003$ 1,690,043 1,650,297
Plan fiduciary net position as a percentage of the total pension liability 69.49 % 70.82 % 70.48 % C overed payroll 828,020$ 777,319 745,664 Net pension liability as a percentage of covered payroll 219.68 % 217.42 % 221.32 %
Police Officers Retirement System: Total pension liability 1,851,587$ 1,780,416 1,713,295 Pension plan's fiduciary net position 1,400,565 1,483,674 1,435,923 Net pension liability 451,022$ 296,742 277,372
Plan fiduciary net position as a percentage of the total pension liability 75.64 % 83.33 % 83.81 % C overed payroll 122,071$ 117,663 114,173 Net pension liability as a percentage of covered payroll 369.48 % 252.20 % 242.94 %
Uniformed Retirement System: Total pension liability 2,294,057$ 2,209,430 2,125,850 Pension plan's fiduciary net position 1,762,103 1,813,733 1,759,903 Net pension liability 531,954$ 395,697 365,947
Plan fiduciary net position as a percentage of the total pension liability 76.81 % 82.09 % 82.79 % C overed payroll 180,049$ 178,285 174,808 Net pension liability as a percentage of covered payroll 295.45 % 221.95 % 209.34 %
Educational Employees' Supplementary Retirement System
Total pension liability 3,543,957$ 3,406,341 3,238,436 Pension plan's fiduciary net position 2,593,384 2,521,442 2,446,280 Net pension liability 950,573$ 884,899 792,156
Plan fiduciary net position as a percentage of the total pension liability 73.18 % 74.02 % 75.54 % C overed payroll 1,626,417$ 1,549,248 1,469,629 Net pension liability as a percentage of covered payroll 58.45 % 57.12 % 53.90 %
* This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
163Financial Section
Required Supplementary Information
2018 2017 2016 2015 Employees' Retirement System:
5,367,732 5,116,416 4,979,660 4,807,874 Total pension liability 3,749,385 3,590,081 3,693,357 3,766,060 Pension plan's fiduciary net position 1,618,347 1,526,335 1,286,303 1,041,814 Net pension liability
69.85 % 70.17 % 74.17 % 78.33 % Plan fiduciary net position as a percentage of the total pension liability
730,618 708,415 686,289 671,597 C overed payroll
221.50 % 215.46 % 187.43 % 155.12 % Net pension liability as a percentage of covered payroll
Police Officers Retirement System: 1,640,669 1,560,516 1,510,917 1,453,060 Total pension liability 1,365,844 1,270,389 1,280,915 1,260,757 Pension plan's fiduciary net position
274,825 290,127 230,002 192,303 Net pension liability
83.25 % 81.41 % 84.78 % 86.77 % Plan fiduciary net position as a percentage of the total pension liability
111,291 107,022 102,844 100,912 C overed payroll
246.94 % 271.09 % 223.64 % 190.57 % Net pension liability as a percentage of covered payroll
Uniformed Retirement System: 2,033,689 1,940,457 1,883,675 1,781,131 Total pension liability 1,645,263 1,498,702 1,525,617 1,516,720 Pension plan's fiduciary net position
388,426 441,755 358,058 264,411 Net pension liability
80.90 % 77.23 % 80.99 % 85.15 % Plan fiduciary net position as a percentage of the total pension liability
173,604 168,808 160,762 153,979 C overed payroll
223.74 % 261.69 % 222.73 % 171.72 % Net pension liability as a percentage of covered payroll
Educational Employees' Supplementary Retirement System
3,094,309 2,937,101 2,789,228 2,697,689 Total pension liability 2,304,281 2,107,588 2,179,724 2,204,927 Pension plan's fiduciary net position
790,028 829,513 609,504 492,762 Net pension liability
74.47 % 71.76 % 78.15 % 81.73 % Plan fiduciary net position as a percentage of the total pension liability
1,430,260 1,374,735 1,366,030 1,324,537 C overed payroll
55.24 % 60.34 % 44.62 % 37.20 % Net pension liability as a percentage of covered payroll
164
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Employer Contributions-Single Employer Plans Last Ten Fiscal Years (Dollar amounts in thousands)
2021 2020 2019 2018 2017 Employees' Retirement Systems: Actuarial Determined C ontribution $ 227,846 234,744 210,964 188,578 167,312 C ontributions in Relations to the
Actuarial Determined C ontribution 227,846 234,744 210,964 188,578 167,312 C ontribution (Deficiency) Excess $ - - - - -
C overed Payroll $ 803,691 828,021 777,319 745,664 730,618 C ontributions as a Percentage of
C overed Payroll 28.35% 28.35% 27.14% 25.29% 22.90%
Police Officers Retirement System: Actuarial Determined C ontribution $ 50,348 50,781 47,183 44,505 43,381 C ontributions in Relations to the
Actuarial Determined C ontribution 50,348 50,781 47,183 44,505 43,381 C ontribution (Deficiency) Excess $ - - - - -
C overed Payroll $ 121,029 122,071 117,663 114,173 111,291
C ontributions as a Percentage of C overed Payroll 41.60% 41.60% 40.10% 38.98% 38.98%
Uniformed Retirement System: Actuarial Determined C ontribution $ 69,464 69,931 69,246 67,895 67,410 C ontributions in Relations to the
Actuarial Determined C ontribution 69,464 69,931 69,246 67,895 67,410 C ontribution (Deficiency) Excess $ - - - - -
C overed Payroll $ 178,847 180,049 178,285 174,853 173,604 C ontributions as a Percentage of
C overed Payroll 38.84% 38.84% 38.84% 38.83% 38.83%
Educational Employees' Supplementary Retirement System: Actuarial Determined C ontribution $ 104,784 104,741 96,983 93,543 80,305 C ontributions in Relations to the
Actuarial Determined C ontribution 104,784 104,741 96,983 91,705 80,146 C ontribution (Deficiency) Excess $ - - - (1,838) (159)
C overed Payroll $ 1,627,086 1,626,417 1,549,248 1,469,629 1,430,260 C ontributions as a Percentage of
C overed Payroll 6.44% 6.44% 6.26% 6.24% 5.60%
See accompanying notes to required supplementary information.
165Financial Section
Required Supplementary Information
2016 2015 2014 2013 2012 Employees' Retirement Systems:
155,780 138,493 129,618 127,448 114,683 Actuarial Determined C ontribution C ontributions in Relations to the
155,780 138,493 129,618 127,448 114,683 Actuarial Determined C ontribution - - - - - C ontribution (Deficiency) Excess
708,415 686,289 671,597 669,018 666,759 C overed Payroll C ontributions as a Percentage of
21.99% 20.18% 19.30% 19.05% 17.20% C overed Payroll
Police Officers Retirement System: 40,647 37,867 34,179 34,011 31,701 Actuarial Determined C ontribution
C ontributions in Relations to the 40,647 37,867 34,179 34,011 31,701 Actuarial Determined C ontribution
- - - - - C ontribution (Deficiency) Excess
107,022 102,844 100,912 102,598 101,280 C overed Payroll
C ontributions as a Percentage of 37.98% 36.82% 33.87% 33.15% 31.30% C overed Payroll
Uniformed Retirement System: 65,548 60,929 56,095 53,722 50,351 Actuarial Determined C ontribution
C ontributions in Relations to the 65,548 60,929 56,095 53,722 50,351 Actuarial Determined C ontribution
- - - - - C ontribution (Deficiency) Excess
168,808 160,762 153,979 153,492 148,924 C overed Payroll C ontributions as a Percentage of
38.83% 37.90% 36.43% 35.00% 33.81% C overed Payroll
Educational Employees' Supplementary Retirement System:
76,070 74,791 72,749 68,242 50,739 Actuarial Determined C ontribution C ontributions in Relations to the
76,600 74,324 74,174 67,735 52,934 Actuarial Determined C ontribution 530 (467) 1,425 (507) 2,195 C ontribution (Deficiency) Excess
1,374,735 1,328,420 1,324,537 1,268,439 1,219,683 C overed Payroll C ontributions as a Percentage of
5.57% 5.59% 5.60% 5.34% 4.34% C overed Payroll
166
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Proportionate Share of Net Pension Liability in VRS Pension Plan Last Ten Fiscal Years * (Dollar amounts in thousands)
County of Fairfax, Virginia Schedule of Contributions-VRS Pension Plan Last Ten Fiscal Years* (Dollar amounts in thousands)
Proportion of the net
pension liability
Proportion share of the net
pension liability C overed payroll
Proportionate share of the net pension liability
as a percentage of its covered payroll
C ontributions as a Percentage of C overed Payroll
2021 18.51% 2,693,016$ 1,626,469$ 165.57% 71.47%
2020 18.47% 2,430,715 1,549,185 156.90% 73.51%
2019 18.19% 2,139,027 1,470,716 145.44% 74.81%
2018 18.16% 2,232,727 1,432,051 155.91% 72.92%
2017 17.95% 2,515,447 1,368,572 183.80% 68.28%
2016 17.89% 2,251,917 1,330,241 169.29% 70.88%
2015 18.15% 2,193,660 1,327,488 165.25% 70.88%
The amounts presented for each fiscal year were determined as of June 30th, year shown is fiscal year of presentation. See accompanying notes to required supplementary information.
* The schedule is intended to show information for 10 years. 2015 is first year implemented, additional years will be displayed as they become available.
Actuarial Determined C ontribution
C ontributions in Relations to the
Actuarial Determined C ontribution
C ontribution Deficiency (Excess)
C overed Payroll
C ontributions as a Percentage of
C overed Payroll 2021 270,303$ 270,303 - 1,626,372 16.62 % 2020 255,030 255,030 - 1,626,469 15.68 2019 242,912 242,912 - 1,549,185 15.68 2018 240,021 240,021 - 1,470,716 16.32 2017 233,711 209,939 23,772 1,432,051 14.66 2016 192,421 192,421 - 1,368,572 14.06 2015 192,885 192,885 - 1,330,245 14.50
See accompanying notes to required supplementary information.
* The schedule is intended to show information for 10 years. Fiscal year 2015 is the first year implemented, additional years will be displayed as they become available.
167Financial Section
Required Supplementary Information
County of Fairfax, Virginia Schedule of Changes in the Net OPEB Liability and Related Ratios* Last Ten Fiscal Years ** (Dollar amounts in thousands)
2021 2020 2019 2018 2017
Total OPEB Liability
Service C ost $ 11,679 15,608 13,994 9,987 7,582
Interest 24,392 33,195 28,235 22,517 23,024
C hanges of Benefit Terms - - - (387) -
Differences Between Expected and Actual Experiences 21,576 (1,518) 17,956 (10,412) 3,389
C hanges of Assumptions (791) (145,858) 32,078 78,188 (22,671)
Benefit Payments (23,252) (23,254) (22,798) (21,670) (20,278)
Net Change in Total OPEB Liability 33,604 (121,827) 69,465 78,223 (8,954)
Total OPEB Liability (Beginning) 348,206 470,033 400,568 322,345 331,299
Total OPEB Liability (Ending) $ 381,810 348,206 470,033 400,568 322,345
Plan Fiduciary Net Position
C ontributions—Employer $ 18,072 19,677 25,659 24,367 27,992
Net Investment Income 98,443 9,633 13,837 26,160 30,711
Benefit Payments (23,252) (23,254) (22,827) (21,670) (20,278)
Administrative Expense (131) (131) (127) (123) (118)
Net Change in Plan Fiduciary Net Position 93,132 5,925 16,542 28,734 38,307
Plan Fiduciary Net Position (Beginning) 330,765 324,840 308,298 279,564 241,257
Plan Fiduciary Net Position (Ending) 423,897 330,765 324,840 308,298 279,564
Net OPEB Liability (Ending) $ (42,087) 17,441 145,193 92,270 42,781
111.02% 94.99% 69.11% 76.96% 86.73%
Covered-Employee Payroll $ 1,027,104 961,557 932,764 911,923 908,162
(4.10)% 1.81% 15.57% 10.11% 4.71%
** The schedule is intended to show information for 10 year. Additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
Net Position as a Percentage of the Total OPEB Liability
Net OPEB Liability as a Percentage of Covered- Employee Payroll
* Dates Presented are based on the Plan reporting year. One year prior represents the perspective of the reporting entity, therefore 11 years will be presented.
Fiscal Year Ending June 30
168
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Contributions-OPEB Last Ten Fiscal Years * (Dollar amounts in thousands)
County of Fairfax, Virginia Schedule of Investment Returns-OPEB Last Ten Fiscal Years*
Actuarially Determined C ontribution
C ontributions Made in Relation to the
Actuarially Determined C ontribution
C ontribution Deficiency (Excess)
C overed-Employee Payroll
C ontributions as a Percentage of
C overed-Employee Payroll
2021 18,864$ 18,072 792 1,027,104 1.76% 2020 16,220 19,677 (3,457) 961,557 2.05% 2019 22,827 25,659 (2,832) 932,764 2.75% 2018 21,670 24,367 (2,697) 911,923 2.67% 2017 20,278 27,992 (7,714) 908,162 3.08%
* The schedule is intended to show information for 10 years. Fiscal year 2017 is the first year implemented, additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
Annual money-weighted rate of return, net of investment expense
2021 30.61% 2020 2.55% 2019 4.57% 2018 9.55% 2017 12.85%
* The schedule is intended to show information for 10 years. Fiscal year 2017 is first year implemented, additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
169Financial Section
Required Supplementary Information
County of Fairfax, Virginia Schedule of Changes in the Net OPEB Liability and Related Ratios - Public Schools OPEB Plan Last Ten Fiscal Years ** (Dollar amounts in thousands)
AC FR Reporting Year Measurement Date June 30 of prior year 2021 2020 2019 2018 2017
Total OPEB Liability Service cost 3,878$ 5,046 5,221 8,320 N/A Interest 15,321 12,378 17,157 29,187 N/A C hanges of benefit terms - - (39,067) - N/A Differences between expected and actual experience (6,731) 58,670 (24,768) 33,884 N/A C hanges of assumptions (999) (15,662) - (170,068) N/A Benefit payments, including refunds of member contributions (10,349) (23,875) (29,287) (54,806) N/A
Net change in total OPEB liability 1,120 36,557 (70,744) (153,483) N/A
Total OPEB liability - beginning 220,083 183,526 254,270 407,753 N/A Total OPEB liability - ending 221,203$ 220,083 183,526 254,270 407,753
Plan Fiduciary Net Position C ontributions - employer 15,349$ 28,875 34,287 59,806 22,404 Net investment income 47,507 4,561 6,423 11,565 13,289 Benefit payments, including refunds of member contributions (10,349) (23,875) (29,287) (54,806) (17,404) Administrative expense (101) (101) (89) (87) (84)
Net change in plan fiduciary net position 52,406 9,460 11,334 16,478 18,205
Plan fiduciary net position - beginning 155,969 146,509 135,175 118,697 100,492 Plan fiduciary net position - ending 208,375$ 155,969 146,509 135,175 118,697
Net OPEB liability - ending 12,828$ 64,114 37,017 119,095 289,056
Plan fiduciary net position as a percentage of the total OPEB liability 94.20 % 70.87 % 79.83 % 53.16 % 29.11 % C overed employee payroll 1,750,085$ 1,699,112 1,393,959 1,340,335 1,256,877 Net OPEB liability as a percentage of covered employee payroll 0.73 % 3.77 % 2.66 % 8.89 % 23.00 %
* See accompanying notes to required supplementary information. This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
170
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Schedule of Public Schools’ Proportionate Share of Net OPEB Liability VRS HIC OPEB Plan Last Ten Fiscal Years * (Dollar amounts in thousands)
County of Fairfax, Virginia Schedule of Public Schools’ Proportionate Share of Net OPEB Liability VRS GLI OPEB Plan Last Ten Fiscal Years * (Dollar amounts in thousands)
Proportion of the
net OPEB liability
Proportionate share of the
net OPEB liability
C overed employee
payroll
Proportionate share of the net OPEB liability as a
percentage of its covered employee payroll
Plan fiduciary net position as a
percentage of the total OPEB liability
2021 18.55% 242,022$ 1,626,466$ 14.88% 9.95% 2020 18.47% 241,787 1,549,185 15.61% 8.97% 2019 18.18% 230,889 1,470,712 15.70% 8.08% 2018 18.15% 230,217 1,432,191 16.07% 7.04%
See accompanying notes to required supplementary information.
* The schedule is intended to show information for 10 years. Fiscal year 2018 is the first year implemented, additional years will be displayed as they become available.
Proportion of the
net OPEB liability
Proportionate share of the
net OPEB liability
C overed employee
payroll
Proportionate share of the net OPEB liability as a
percentage of its covered employee payroll
Plan fiduciary net position as a
percentage of the total OPEB liability
2021 7.95% 132,610$ 1,635,371$ 8.11% 52.64% 2020 7.96% 129,575 1,560,950 8.30% 52.00% 2019 7.79% 118,262 1,480,801 7.99% 51.22% 2018 7.80% 117,380 1,438,996 8.16% 48.86%
See accompanying notes to required supplementary information.
* The schedule is intended to show information for 10 years. Fiscal year 2018 is the first year implemented, additional years will be displayed as they become available.
171Financial Section
Required Supplementary Information
County of Fairfax, Virginia
County of Fairfax, Virginia Schedule of Contributions-Public Schools VRS HIC OPEB Plan Last Ten Fiscal Years * (Dollar amounts in thousands)
Schedule of Contributions-Public Schools OPEB Plan Last Ten Fiscal Years * (Dollar amounts in thousands)
Actuarial Determined C ontribution
C ontributions in Relations to the
Actuarial Determined C ontribution
C ontribution Deficiency (Excess)
C overed Employee Payroll
C ontributions as a Percentage of C overed
Employee Payroll
2021 10,349$ 15,349$ (5,000)$ 1,750,085$ 0.88% 2020 23,875 28,875 (5,000) 1,699,112 1.70% 2019 29,287 34,287 (5,000) 1,393,959 2.46% 2018 54,806 59,806 (5,000) 1,340,335 4.46%
* The schedule is intended to show information for 10 years. Fiscal year 2017 is the first year implemented, additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
C ontractually Required
contribution
C ontributions in Relations to the C ontractually
Required C ontribution
C ontribution Deficiency (Excess)
C overed Employee Payroll
C ontributions as a Percentage of C overed
Employee Payroll
2021 19,679$ 19,679$ -$ 1,626,394$ 1.2% 2020 19,518 19,518 - 1,626,466 1.2% 2019 18,590 18,590 - 1,549,185 1.2% 2018 18,090 18,090 - 1,470,712 1.2% 2017 17,616 15,897 1,719 1,432,191 1.1% 2016 16,152 14,510 1,642 1,368,852 1.1% 2015 15,700 14,103 1,597 1,330,497 1.1% 2014 15,535 14,738 797 1,327,753 1.1% 2013 14,937 14,171 766 1,276,659 1.1% 2012 13,247 7,359 5,888 1,226,575 0.6%
The amounts presented for each fiscal year were determined as of June 30th of the fiscal year shown. See accompanying notes to required supplementary information.
172
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Schedule of Contributions-Public Schools VRS GLI OPEB Plan Last Ten Fiscal Years * (Dollar amounts in thousands)
County of Fairfax, Virginia
County of Fairfax, Virginia Schedule of Investment Returns-Public Schools OPEB Plan Last Ten Fiscal Years*
C ontractually Required
contribution
C ontributions in Relations to the C ontractually
Required C ontribution
C ontribution Deficiency (Excess)
C overed Employee Payroll
C ontributions as a Percentage of C overed
Employee Payroll
2021 8,856$ 8,856$ -$ 1,639,978$ 0.5% 2020 8,504 8,504 - 1,635,371 0.5% 2019 8,117 8,117 - 1,560,950 0.5% 2018 7,700 7,700 - 1,480,801 0.5% 2017 7,483 7,483 - 1,438,996 0.5% 2016 7,286 6,599 687 1,374,776 0.5% 2015 7,073 6,405 668 1,334,442 0.5% 2014 7,062 6,396 666 1,332,479 0.5% 2013 6,790 6,149 641 1,281,054 0.5% 2012 5,443 3,463 1,980 1,236,933 0.3%
The amounts presented for each fiscal year were determined as of June 30th of the fiscal year shown. See accompanying notes to required supplementary information.
Annual money-weighted rate of return, net of investment expense 2021 30.09% 2020 3.05% 2019 4.66% 2018 9.50% 2017 12.86%
* The schedule is intended to show information for 10 years. Fiscal year 2017 is the first year implemented, additional years will be displayed as they become available.
See accompanying notes to required supplementary information.
173Financial Section
Notes to Required Supplementary Information
County of Fairfax, Virginia Notes to Required Supplementary Information
June 30, 2021
A. Budgetary Data
The Board of Supervisors adheres to the following procedures in establishing the annual budgetary data reflected in the financial statements:
a. By March 1, the County Executive submits to the Board of Supervisors a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. During April, public hearings are conducted to obtain taxpayer comments. By May 1, the budget is legally enacted through passage of an appropriation resolution.
b. The operating budget includes all County appropriated funds and certain non-appropriated funds. The non-appropriated funds include certain funds of the Park Authority and the FCRHA that are not financed by the County.
c. Budget reviews are held during the fiscal year. Public hearings are held if the recommended increase in the appropriated budget is greater than one percent of expenditures.
d. The budget is controlled at certain legal and administrative levels. The Code of Virginia requires that the County annually adopt a balanced budget. The adopted Fiscal Planning Resolution places legal restrictions on expenditures at the agency (e.g., County organizations in the General Fund) or fund level and identifies administrative controls at the character (i.e., personnel services, operating expenses, recovered costs, and capital equipment) or project level. The County’s Department of Management and Budget is authorized to transfer budgeted amounts between characters or projects within any agency or fund as a management function. Any revisions that alter the total expenditures of any agency or fund must be approved by the Board of Supervisors.
e. Annual operating budgets are adopted for all appropriated governmental funds, except for the capital projects funds in which budgetary control is achieved on a project-by-project basis. The budgets are on a basis consistent with GAAP for the General Fund, except that:
• Certain purchase order transactions that qualify as current expenditures under GAAP, are not recognized as expenditures in the current budget due to the timing of the receipt of goods or services.
• Offsetting revenues and expenditures related to donated food are not budgeted.
• Capital lease transactions when initiated are not budgeted as offsetting expenditures and other financing sources.
• Certain capital outlays are budgeted as functional expenditures.
• Payments from or to component units are budgeted as transfers rather than functional revenues and expenditures.
• Inventories of supplies are not included in the fund balance for budget purposes.
• Nondepartmental expenditures are reported for budgeting purposes, but are included in functional expenditures for reporting purposes.
174
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
• The Gift Fund, which is included in the County’s General Fund for reporting purposes, is treated as an custodial fund for budgeting purposes.
• The Information Technology Fund, Consolidated Community Funding Pool Fund, Contributory Fund, the Revenue Stabilization Fund, Northern Virginia Regional Identification System (NOVARIS), and the Economic Opportunity Reserve Fund which are included in the County’s General Fund for reporting purposes, are budgeted as separate funds.
The following schedule reconciles the amounts on the Budgetary Comparison Schedule – General Fund (Budget Basis) to the amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balances (Exhibit A-3):
f. Original and final budgeted amounts are shown on the Budgetary Comparison Schedule; amendments were not significant in relation to the original budget.
g. Appropriations lapse at June 30 unless the Board of Supervisors approves carrying them forward to the next fiscal year.
B. Pension Trend Data
Ten-year historical trend information of the retirement systems administered by the County is presented as required supplementary information. This information is intended to help users assess each system’s funding status on a going concern basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons with other public employee retirement systems.
Analysis of the dollar amounts of plan fiduciary net position, total pension liability, and net pension liability in isolation can be misleading. Expressing plan net position as a percentage of the total pension liability provides one indication of each system’s funding status. Analysis of this percentage over time indicates whether the system is becoming financially stronger or weaker. Generally, the greater this percentage is, the stronger the system. Trends in the net pension liability and covered payroll are both affected by inflation. Expressing the net pension liability as a percentage of covered payroll approximately adjusts for the effects of inflation and aids in the analysis of the systems’ progress made in accumulating sufficient assets to pay
Primary Government General Fund
Net change in fund balance (Budget basis) 40,113,724$ Timing difference - Goods/Invoice Receipt 291,163 Basis difference 20 Basis difference - Appropriated reserve fund balance deferral 18,738,852 Perspective differences:
The Gift Fund is treated as an custodial fund for budget purposes (35,441) The Northern Virginia Regional Identification System (NOVARIS) is treated as a separate fund for budget purposes 18,855 The Revenue Stabilization Fund is treated as a separate fund for budget purposes 4,652,101 The Economic Opportunity Reserve Fund is treated as separate fund for budget purposes 15,083,288 The C onsolidated C ommunity Funding Pool Fund is treated as a separate fund for budget purposes (15,361) The C ontributory Fund is treated as a separate fund for budget purposes 6,253 The Information Technology Fund is treated as a separate fund for budget purposes (2,125,515)
Net change in fund balance (GAAP basis) 76,727,939$
175Financial Section
Notes to Required Supplementary Information
benefits when due. Generally, the smaller the percentage is, the stronger the system.
The Schedule of Changes in Net Pension Liability and Related Ratios illustrates whether each plan’s net position is increasing or decreasing over time relative to the total pension liability, and the net pension liability as it relates to covered payroll.
The Schedule of Employer Contributions provides historical context for the amount of contributions in the current period. The actuarially determined contribution rates are calculated as of June 30, one year prior to the beginning of the fiscal year in which contributions are reported. Significant methods and assumptions used to determine the contributions for County administered systems include:
Information pertaining to the retirement systems administered by the reporting entity can be found in Note G to the financial statements.
C. Other Postemployment Benefits (OPEB) Trend Data
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Changes in Net OPEB Liability and Related Ratios presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Beginning in fiscal year 2017, information provided in relation to the GASB 74 requirements include information related to the total and net OPEB liability, information associated with the actuarially determined contribution, and investment returns. Significant methods and assumptions used to determine the contributions for net OPEB liability include:
Disclosures associated with the County reporting of OPEB and OPEB Plan reporting are found in Note H to the financial statements.
Discount rate, net of plan investment expenses Inflation Salary increases, including inflation Investment rate of return, net of plan investment expenses 7.25% Mortality
2.75%
7.25% 2.75%
Healthy and Disabled Mortality Table RP- 2014 projected using the RPEC -2015 model
Investment rate of return 7.00%, net of OPEB plan investment expense, including inflation
Retirement age Varies by age and pension plan
Mortality Pub-2010, "General" classification, Employees & Healthy Annuitant mortality table, projected using scale MP-2019, sex-distinct. Disabled mortality table Pub-2010, "General" classification, Disabled Retirement mortality table, projected using scale MP-2019, sex distinct.
Healthcare cost trend rate 7.6% - 10.6%, decreasing to 4.3%
176
Required Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Other
Supplementary Information
he Other Supplementary Information subsection
includes the combining and individual fund
statements and schedules for the following:
Governmental Funds Internal Service Funds Fiduciary Funds Component Units:
- Fairfax County Public Schools
- Fairfax County Redevelopment and Housing Authority
- Fairfax County Park Authority
- Fairfax County Economic Development Authority
T
177Financial Section
General Fund Group
The General Fund is used to account for all revenues and expenditures of the County, which are not required to be accounted for in other funds.
Revenues are derived primarily from real estate and personal property taxes, local sales taxes, utility taxes, business, professional and occupational license taxes, the use of money and property, license and permit fees, and state shared taxes.
Expenditures and transfers out include the costs of the general County government and transfers to component units and other funds, principally made to fund the operations of the Public Schools, and the debt service requirements of the County and Public Schools.
The General Fund Group contains funds which are included in the General Fund for GAAP reporting purposes, but are budgeted separately. Prior to fiscal year 2017, these funds were included in the budget as special revenue funds:
Consolidated Community Funding Pool Fund is used to account for money awarded to community-based nonprofit organizations on a competitive basis to provide certain services to County citizens.
Contributory Fund is used to account for money awarded to certain contributory organizations to provide human services to County citizens.
Northern Virginia Regional Identification System (NOVARIS) is used to account for contributions received from the County and six other participating Northern Virginia jurisdictions to enhance the Northern Virginia Regional Identification System. Program operations are decentralized among the participating Northern Virginia jurisdictions.
Information Technology Fund is used to account for the acquisition of computer hardware and software for information technology projects which are designed to improve the County’s management information system, its operational efficiency, and customer service.
Revenue Stabilization Fund is used to reserve funds that could be utilized in the event of a significant unexpected downturn in the economy. Economic Opportunity Reserve is used as a reserve to stimulate economic growth and to provide for strategic investment opportunities identified as priorities by the Board.
178
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Budgetary Comparison Schedule Detail - General Fund (Budget Basis) For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Original Final REVENUES Taxes:
Real property 3,002,075,466$ 3,003,122,258 3,006,833,156 3,710,898 Personal property 428,024,388 431,128,068 431,079,622 (48,446) Business licenses 158,072,776 171,034,631 180,264,237 9,229,606 Local sales and use 232,310,767 254,177,089 260,955,276 6,778,187 C onsumers utility 45,639,081 44,940,753 44,374,901 (565,852) Recordation 23,540,000 33,566,485 42,977,172 9,410,687 Occupancy, tobacco, and other 29,538,281 18,951,610 20,532,652 1,581,042
Total taxes 3,919,200,759 3,956,920,894 3,987,017,016 30,096,122 Permits, privilege fees, and regulatory licenses 49,642,908 50,227,871 57,076,113 6,848,242 Intergovernmental 352,948,719 463,482,704 465,276,053 1,793,349 C harges for services 83,119,246 32,818,852 33,695,016 876,164 Fines and forfeitures 11,795,664 5,354,518 5,477,214 122,696 Revenue from the use of money and property 24,257,799 24,257,799 24,776,135 518,336 Recovered costs 16,234,444 14,441,507 18,312,163 3,870,656
Total revenues 4,457,199,539 4,547,504,145 4,591,629,710 44,125,565 EXPENDITURES General government administration:
Board of Supervisors 5,517,094 5,570,594 5,226,549 344,045 Financial and Program Auditor 413,868 415,868 251,983 163,885 C ounty Executive 5,817,714 7,211,019 5,816,147 1,394,872 C lerk Services 1,817,896 1,843,855 1,752,481 91,374 Tax Administration 27,826,856 27,474,366 26,295,231 1,179,135 Finance 9,148,571 9,238,709 8,883,263 355,446 Human Resources 8,164,738 8,340,265 8,044,365 295,900 Procurement and Material Management 7,568,849 8,456,816 7,168,511 1,288,305 Public Affairs 1,790,052 1,816,085 1,683,813 132,272 Elections 4,993,525 7,833,789 7,159,771 674,018 C ounty Attorney 8,105,981 8,722,980 7,787,013 935,967 Information Technology 37,498,446 38,248,715 37,360,416 888,299 Management and Budget 5,516,999 5,594,550 5,412,327 182,223 C ivil Service C ommission 468,731 471,731 390,430 81,301 Independent Police Auditor 328,198 397,186 363,805 33,381
Total general government administration 124,977,518 131,636,528 123,596,105 8,040,423 Judicial administration:
C ircuit C ourt and Records 12,482,661 12,800,923 12,221,075 579,848 C ommonwealth Attorney 5,049,457 6,319,431 5,133,836 1,185,595 General District C ourt 4,385,501 4,547,421 3,817,228 730,193 Sheriff 20,633,109 20,725,448 19,954,530 770,918
Total judicial administration 42,550,728 44,393,223 41,126,669 3,266,554 Public safety:
C able and C onsumer Services 760,719 768,227 767,461 766 Land Development Services 13,662,545 15,095,069 13,755,122 1,339,947 Juvenile and Domestic Relations District C ourt 25,825,193 25,735,637 23,999,362 1,736,275 Police Department 214,788,028 220,090,480 212,516,528 7,573,952 Sheriff 52,193,261 52,872,250 45,174,539 7,697,711 Fire and Rescue 218,989,964 223,413,997 217,324,258 6,089,739 Emergency Management 1,947,864 2,651,723 1,648,173 1,003,550 Animal Sheltering 2,749,929 2,807,350 2,524,182 283,168 C ode C ompliance 4,791,825 4,837,325 4,297,006 540,319
Total public safety 535,709,328$ 548,272,058 522,006,631 26,265,427 continued
Variance from Final Budget
Positive (Negative)
Actual Amounts (Budget Basis)
Budgeted Amounts
179Financial Section
Exhibit B
General Fund Group
Original Final Public works:
Facilities Management 59,385,623$ 62,894,853 58,170,422 4,724,431 Business Planning and Support 1,009,322 1,057,463 722,543 334,920 C apital Facilities 15,345,436 15,766,133 13,501,009 2,265,124 Unclassified Administrative Expenses 3,948,694 4,449,461 4,143,631 305,830
Total public works 79,689,075 84,167,910 76,537,605 7,630,305 Health and welfare:
Family Services 147,721,168 146,387,994 134,411,533 11,976,461 Health Department 67,715,072 67,864,832 47,868,459 19,996,373 Office of Strategy Management for Health & Human Services 3,369,767 3,219,765 2,550,601 669,164 Neighborhood and C ommunity Services 83,218,369 85,921,458 68,207,310 17,714,148
Total health and welfare 302,024,376 303,394,049 253,037,903 50,356,146 C ommunity development:
Economic Development Authority 8,841,483 8,879,483 8,865,843 13,640 Economic Initiatives 1,216,480 1,308,980 1,053,315 255,665 Land Development Services 15,101,040 16,359,514 14,976,089 1,383,425 Planning and Development 13,733,875 15,202,729 12,649,449 2,553,280 Housing and C ommunity Development 24,830,358 27,327,884 26,374,675 953,209 Human Rights and Equity Programs 1,859,931 1,921,562 1,466,298 455,264 Transportation 8,944,137 9,775,755 8,604,045 1,171,710
Total community development 74,527,304 80,775,907 73,989,714 6,786,193 Parks, recreation, and cultural:
Park Authority 27,452,530 28,160,017 26,269,050 1,890,967 Public Library 30,294,136 30,461,526 28,304,597 2,156,929
Total parks, recreation, and cultural 57,746,666 58,621,543 54,573,647 4,047,896 Nondepartmental:
Unclassified Administrative Expenses 10,038,597 273,880,983 131,809,837 142,071,146 Employee Benefits 401,366,561 394,063,873 378,632,990 15,430,883
Total nondepartmental 411,405,158 667,944,856 510,442,827 157,502,029 Total expenditures 1,628,630,153 1,919,206,074 1,655,311,101 263,894,973
Excess of revenues over expenditures 2,828,569,386$ 2,628,298,071 2,936,318,609 308,020,538 continued
Variance from Final Budget
Positive (Negative)
Actual Amounts (Budget Basis)
Budgeted Amounts
180
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit B concludedBudgetary Comparison Schedule Detail - General Fund (Budget Basis)
For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Original Final OTHER FINANCING SOURCES (USES) Transfers in:
From other Primary Government funds: Special Revenue Funds:
C able C ommunications 2,411,781$ 2,411,781 2,411,781 - Integrated Pest Management 141,000 141,000 141,000 - Stormwater Services 1,125,000 1,125,000 1,125,000 - Leaf C ollection 54,000 54,000 54,000 - Refuse C ollection and Recycling Operations 494,000 494,000 494,000 - Refuse Disposal 626,000 626,000 626,000 -
I-95 Refuse Disposal 186,000 186,000 186,000 - Enterprise Funds:
Sewer Operation and Maintenance 2,850,000 2,850,000 2,850,000 - C omponent Units 820,000 820,000 820,000 -
Total transfers in from other Primary Government funds 8,707,781 8,707,781 8,707,781 -
Transfers out: To other Primary Government funds:
Special Revenue Funds: C ounty Transit Systems (40,633,472) (40,633,472) (40,633,472) - Federal/State Grants (4,432,654) (4,432,654) (4,432,654) - Information Technology - (16,144,000) (16,144,000) - Fairfax-Falls C hurch C ommunity Services Board (147,554,569) (147,216,019) (147,216,019) - C onsolidated C ommunity Funding Pool (12,283,724) (12,283,724) (12,283,724) - C ontributory Fund (14,506,749) (15,266,749) (15,266,749) - E-911 - (220,145) (220,145) - Alcohol Safety Action Program (774,807) (941,493) (941,493) - Early C hildhood Birth to 5 (32,564,400) (32,611,229) (32,611,229) - Revenue Stabilization - (3,955,212) (3,955,212) - Economic Reserve (8,263,008) (14,050,131) (14,050,131) -
Debt Service Fund: Debt Service Fund (329,222,805) (329,222,805) (329,222,805) -
C apital Projects Funds: General C onstruction and C ontributions (16,456,430) (23,469,189) (23,469,189) - Environmental and Energy Program (916,615) (9,116,615) (9,116,615) - Infrastructure Replacement and Upgrades - (12,315,375) (12,315,375) - Metro Operations and C onstruction (43,950,424) (43,950,424) (43,950,424) - Pedestrian Walkway Improvements (700,000) (3,018,555) (3,018,555) - Stormwater Management Program -
Internal Service Funds: C ounty Insurance (24,291,320) (24,302,085) (24,302,085) - Document Services (3,941,831) (3,965,515) (3,965,515) - Technology Infrastructure Services - (58,132) (58,132) -
OPEB Trust Fund (4,490,000) (4,490,000) (4,490,000) - Total transfers out to other Primary
Government funds (684,982,808) (741,663,523) (741,663,523) - To component units:
Public Schools: School Operation (2,143,322,211) (2,143,322,211) (2,143,322,211) - School C onstruction (13,100,000) (13,100,000) (13,100,000) -
FC RHA - Elderly Housing Program (1,885,995) (1,893,531) (1,893,531) - FC RHA - General Operating - (3,226,872) (3,226,872) - Park Authority - Park Revenue and Operating - (1,706,529) (1,706,529) -
Total transfers out to component units (2,158,308,206) (2,163,249,143) (2,163,249,143) - Total transfers out (2,843,291,014) (2,904,912,666) (2,904,912,666) - Total other financing (uses), net (2,834,583,233) (2,896,204,885) (2,896,204,885) - Net change in fund balance (6,013,847)$ (267,906,814) 40,113,724 308,020,538
Variance from Final Budget
Positive (Negative)
Actual Amounts (Budget Basis)
Budgeted Amounts
181Financial Section
General Fund Group
County of Fairfax, Virginia Exhibit B-1a
Original Final EXPENDITURES Health and welfare 12,283,724$ 12,681,743 12,299,085 382,658
Total expenditures 12,283,724 12,681,743 12,299,085 382,658 Excess (deficiency) of revenues over
(under) expenditures (12,283,724) (12,681,743) (12,299,085) 382,658 OTHER FINANCING SOURCES Transfers in 12,283,724 12,283,724 12,283,724 -
Total other financing sources 12,283,724 12,283,724 12,283,724 - Net change in fund balance -$ (398,019) (15,361) 382,658
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
General Fund Group Budgetary Comparison Schedule - Consolidated Community Funding Pool Fund (Budget Basis) For the fiscal year ended June 30, 2021
General Fund Group Budgetary Comparison Schedule - Contributory Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit B-1bCounty of Fairfax, Virginia
Original Final EXPENDITURES General government administration 2,471,674$ 2,496,674 2,489,711 6,963 Public safety 19,577 19,577 19,577 - Health and welfare 3,618,365 3,618,365 3,618,364 1 Community development 4,198,272 4,198,272 4,198,272 - Parks, recreation, and cultural 4,073,915 4,808,915 4,808,915 - Nondepartmental 125,657 125,657 125,657 -
Total expenditures 14,507,460 15,267,460 15,260,496 6,964 Excess (deficiency) of revenues over
(under) expenditures (14,507,460) (15,267,460) (15,260,496) 6,964 OTHER FINANCING SOURCES Transfers in 14,506,749 15,266,749 15,266,749 -
Total other financing sources 14,506,749 15,266,749 15,266,749 - Net change in fund balance (711)$ (711) 6,253 6,964
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
182
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Original Final REVENUES Revenue from the use of money and property 206$ 206 262 56 Recovered costs 18,593 18,593 18,593 -
Total revenues 18,799 18,799 18,855 56 EXPENDITURES Public safety 18,799 75,602 - 75,602
Total expenditures 18,799 75,602 - 75,602 Excess (deficiency) of revenues over
(under) expenditures - (56,803) 18,855 75,658 Net change in fund balance -$ (56,803) 18,855 75,658
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
General Fund Group Budgetary Comparison Schedule - Northern Virginia Regional Identification System (Budget Basis) For the fiscal year ended June 30, 2021
County of Fairfax, Virginia Exhibit B-1c
Original Final REVENUES Intergovernmental -$ 372,247 744,494 372,247 C harges for Services - 135,928 2,193,173 2,057,245 Revenue from the use of money and property 250,000 50,000 110,018 60,018 Recovered costs - 225,380 414,400 189,020
Total revenues 250,000 783,555 3,462,085 2,678,530 EXPENDITURES General government administration 250,000 58,063,391 21,761,263 36,302,128
Total expenditures 250,000 58,063,391 21,761,263 36,302,128 Excess (deficiency) of revenues over
(under) expenditures - (57,279,836) (18,299,178) 38,980,658 OTHER FINANCING SOURCES Transfers in - 16,144,000 16,144,000 -
Total other financing sources - 16,144,000 16,144,000 - Net change in fund balance -$ (41,135,836) (2,155,178) 38,980,658
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit B-1d General Fund Group Budgetary Comparison Schedule - Information Technology Fund (Budget Basis) For the fiscal year ended June 30, 2021
183Financial Section
General Fund Group
General Fund Group Budgetary Comparison Schedule - Economic Opportunity Reserve Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit B-1eCounty of Fairfax, Virginia General Fund Group Budgetary Comparison Schedule - Revenue Stabilization Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES Revenue from the use of money and property -$ - 696,889 696,889
Total revenues - - 696,889 696,889 Excess of revenues over
expenditures - - 696,889 696,889 OTHER FINANCING SOURCES Transfers in - 3,955,212 3,955,212 -
Total other financing sources - 3,955,212 3,955,212 - Net change in fund balance -$ 3,955,212 4,652,101 696,889
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit B-1f
Original Final REVENUES Revenue from the use of money and property 150,000$ 150,000 107,109 (42,891)
Total revenues 150,000 150,000 107,109 (42,891) EXPENDITURES C ommunity development - 2,108,560 (926,048) 3,034,608 Nondepartmental - 43,535,655 - 43,535,655
Total expenditures - 45,644,215 (926,048) 46,570,263 Excess (deficiency) of revenues over
(under) expenditures 150,000 (45,494,215) 1,033,157 46,527,372 OTHER FINANCING SOURCES Transfers in 8,263,008 14,050,131 14,050,131 -
Total other financing sources 8,263,008 14,050,131 14,050,131 - Net change in fund balance 8,413,008$ (31,444,084) 15,083,288 46,527,372
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
184
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
185Financial Section
Nonmajor Governmental Funds
The Nonmajor Governmental Funds include all special revenue funds, the debt service funds, and capital projects funds.
186
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Nonmajor Governmental Funds Combining Balance Sheet June 30, 2021
County of Fairfax, Virginia Exhibit C
Special Revenue
Funds
Debt Service Funds
C apital Projects Funds
Total Nonmajor
Governmental Funds
702,046,125$ 2,359,479 256,094,131 960,499,735
11,785,144 - 2,591,531 14,376,675 1,684,354 40 5,370,906 7,055,300
12,956,011 - 48,875,310 61,831,321 Due from intergovernmental units 78,729,140 - 249,043 78,978,183 Loan to component unit - 9,599,400 - 9,599,400 Lease to component unit - 34,925,000 - 34,925,000
332,994 - - 332,994 Restricted assets:
Equity in pooled cash and temporary investments 1,289,106 - 15,738,889 17,027,995 C ash with fiscal agents 75,453,207 4,920,191 10,999,518 91,372,916
Property held for sale 1,404,724 - - 1,404,724 Total assets 885,680,805 51,804,110 339,919,328 1,277,404,243
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - -
Total assets and deferred outflows of resources 885,680,805$ 51,804,110 339,919,328 1,277,404,243
66,766,015$ 296,629 12,286,806 79,349,450 Accrued salaries and benefits 18,642,060 - 51,706 18,693,766
3,878,373 - 5,788,195 9,666,568 Due to intergovernmental units 8,797,044 - - 8,797,044 Due to component units - - 2,000,914 2,000,914
834,601 - - 834,601 40,989,382 34,925,000 24,639,226 100,553,608
682,172 - 38,543,408 39,225,580 Total liabilities 140,589,647 35,221,629 83,310,255 259,121,531
DEFERRED INFLOWS OF RESOURCES Unavailable revenue 6,008,139 - 5,370,906 11,379,045
Total deferred inflows of resources 6,008,139 - 5,370,906 11,379,045
Total liabilities and deferred inflows of resources 146,597,786 35,221,629 88,681,161 270,500,576
Nonspendable: Prepaid amounts 332,994 - - 332,994
Total Nonspendable 332,994 - - 332,994 Restricted for:
Public safety, courts, and judicial 37,016,436 - - 37,016,436 General public works 116,443,293 - - 116,443,293 Stormwater management 90,191,555 - - 90,191,555 Transportation 356,413,484 - - 356,413,484 Social services, health and welfare 2,881,495 - - 2,881,495 Housing and community development 45,013,165 - - 45,013,165 Parks, recreation, and cultural 14,163,058 - - 14,163,058 Debt service - 10,920,181 - 10,920,181 C apital projects - - 83,364,946 83,364,946 Other purposes 7,072,814 - - 7,072,814
Total Restricted 669,195,300 10,920,181 83,364,946 763,480,427 C ommitted to:
Public safety, courts, and judicial 2,334,021 - - 2,334,021 Transportation 26,616,996 - - 26,616,996 Social services, health and welfare 38,791,924 - - 38,791,924 Housing and community development 18,529,911 - - 18,529,911 Debt service - 5,662,300 - 5,662,300 C apital projects - - 167,873,221 167,873,221
Total C ommitted 86,272,852 5,662,300 167,873,221 259,808,373 Unassigned: (16,718,127) - - (16,718,127)
Total fund balances 739,083,019 16,582,481 251,238,167 1,006,903,667 885,680,805$ 51,804,110 339,919,328 1,277,404,243 Total liabilities, deferred inflows of resources, and fund balances
Accounts payable and accrued liabilities
Performance and other deposits Unearned revenues
FUND BALANCES
C ontract retainages
Interfund payables
Accounts
ASSETS Equity in pooled cash and temporary investments Receivables (net of allowances):
LIABILITIES
Accrued interest Loans
Prepaid and other assets
187Financial Section
Exhibit C-1 Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Nonmajor Governmental Funds
Special Revenue
Funds
Debt Service Funds
C apital Projects Funds
Total Nonmajor
Governmental Funds
48,261,767$ - 13,247,000 61,508,767 19,574,669 - - 19,574,669
Intergovernmental 342,119,362 3,742,322 5,619,949 351,481,633 322,473,459 - 1,128,706 323,602,165
85,183 - - 85,183 980,924 - 23,296,614 24,277,538
9,159,202 2,173,956 1,516,649 12,849,807 3,300,368 - 5,897,559 9,197,927 2,323,320 - - 2,323,320
748,278,254 5,916,278 50,706,477 804,901,009
4,864,123 - 2,290,781 7,154,904 997,450 - - 997,450
67,411,943 - 279,029 67,690,972 113,458,394 - 60,277 113,518,671 372,190,829 - 3,936,969 376,127,798 236,456,898 - 17,251,316 253,708,214 10,965,675 - 3,282,177 14,247,852
Intergovernmental: C ommunity development 26,905,471 - 82,723,529 109,629,000 Parks, recreation, and cultural - - 28,374,025 28,374,025 Education - for Public Schools 2,761,781 - 180,000,000 182,761,781
C apital outlay: General government administration 157,905 - 8,566,978 8,724,883 Public safety 3,395,454 - 50,391,689 53,787,143 Public works 48,889,534 - 9,640,280 58,529,814 Health and welfare 682,219 - 16,258,742 16,940,961 C ommunity development 15,588,802 - 6,984,545 22,573,347 Parks, recreation, and cultural 2,239,017 - 4,440,478 6,679,495
28,181,444 284,505,000 4,990,000 317,676,444 14,852,577 110,733,249 3,315,455 128,901,281
949,999,516 395,238,249 422,786,270 1,768,024,035 (201,721,262) (389,321,971) (372,079,793) (963,123,026)
273,995,028 333,722,458 119,889,275 727,606,761 (57,750,258) (12,038,000) (29,279,789) (99,068,047)
General obligation bonds issued - - 254,190,000 254,190,000 Premium on general obligation bonds issued - - 36,549,140 36,549,140
- 294,060,000 - 294,060,000 Lease revenue refunding bonds issued - 55,650,000 - 55,650,000 Premium on lease revenue refunding bonds issued - 5,682,049 - 5,682,049
- (293,126,253) - (293,126,253) 1,274,161 - - 1,274,161
217,518,931 383,950,254 381,348,626 982,817,811 15,797,669 (5,371,717) 9,268,833 19,694,785
723,285,350 21,954,198 241,969,334 987,208,882 739,083,019$ 16,582,481 251,238,167 1,006,903,667
REVENUES Taxes Permits, privilege fees, and regulatory licenses
C harges for services
Total revenues EXPENDITURES
Fines and forfeitures Developers' contributions Revenue from the use of money and property Recovered costs Gifts, donations, and contributions
Interest and other charges Total expenditures
C urrent: General government administration
C ommunity development Parks, recreation, and cultural
Judicial administration Public safety Public works Health and welfare
C apital leases
Fund balances, June 30, 2021
Total other financing sources, net Net change in fund balances
Fund balances, July 1, 2020
General obligation refunding bonds issued
Payments to refunded bonds escrow agent
Deficiency of revenues under expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out
Debt service: Principal retirement
188
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Special Revenue Funds
189Financial Section
Special Revenue Funds
The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than bond proceeds for major capital projects) that are legally restricted to expenditures for specified purposes.
County Transit Systems Fund is used to account for the operation of a bus service, known as the Fairfax Connector, to transport citizens in certain parts of the County to and from WMATA’s rail stations and for the County’s contributions to the Virginia Railway Express commuter rail service.
Dulles Rail Phase I Transportation Improvement District Fund is used to account for the charges to property owners within the Phase I District to support the debt service payments for bonds issued to fund the County’s share of certain transportation improvements in the district.
Dulles Rail Phase II Transportation Improvement District Fund is used to account for the charges to property owners within the Phase II District to support the debt service payments for bonds to be issued. These bonds fund the County’s share of certain transportation improvements in the district.
County and Regional Transportation Projects is used to account for the special tax assessed on commercial and industrial real estate in Fairfax County to support opportunities to improve transportation and pedestrian access. The tax revenues support roadway, pedestrian, and transit projects.
Tysons Service District Fund is used to account for the special tax assessed on commercial and residential real estate in Fairfax County Tysons Service District. These revenues provide the district’s share of funding for transportation infrastructure improvements in Tysons.
Reston Service District Fund is used to account for the special tax assessed on commercial and residential real estate in Fairfax County Reston Service District. These revenues provide the district’s share of funding for transportation infrastructure improvements in Reston.
190
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Metrorail Parking System Pledged Revenue Fund is used to collect and disburse funds related to revenue-generating activities at Metrorail parking facilities owned by and located within the County. These funds will be earned from fees paid at these parking facilities and used to pay operating, maintenance and debt expenses of the facilities.
Federal/State Grant Fund is used to account for the utilization of federal and state funds to assist County citizens.
Cable Communications Fund is used to account for costs associated with monitoring the County’s Cable Communications Ordinance and Franchise Agreement as well as providing programming for the County’s Governmental Access Channel. Its primary source of revenue is franchise fees. Early Childhood Birth to 5 Fund is used to account for programs supporting a comprehensive approach to advancing and expanding the County’s early childhood system by providing full and equitable access to high quality, affordable, early care and education for young children.
Fairfax-Falls Church Community Services Board Fund is used to account for mental health, intellectual disability, and alcohol and drug services to individuals and families in Fairfax County and the Cities of Fairfax and Falls Church.
Reston Community Center Fund is used to account for the operation of a community center serving the residents of Small District Five, located within the Hunter Mill Magisterial Districts. The district’s residents support the fund by payment of a special assessment.
Mosaic Community Development Authority (CDA) Fund is the main operating fund of the CDA. The CDA was established as a separate corporate entity and all operational aspects are handled by administrators and trustees outside the County. This fund is not an appropriated fund within the operating budget. Thus, there is no budgetary comparison schedule for this fund. The CDA is funded through a special assessment on property located within the district.
McLean Community Center Fund is used to account for the operation of a community center serving the residents of Small District One, located within the Dranesville Magisterial District. The district’s residents support the fund by payment of a special assessment.
Burgundy Village Community Center Fund is used to account for the operation of a community center serving the residents of Service District 1A, located within the Lee Magisterial District. The district’s residents support the fund by payment of a special assessment.
191Financial Section
Special Revenue Funds
E-911 Fund is used to account for the operation of a 911 emergency response service for the citizens of the County, including related information technology projects. Integrated Pest Management Program Fund is used to account for detection, abatement, and public information programs to suppress gypsy moth and cankerworm insect populations in the County.
Stormwater Services Fund is used to account for the operation of the Stormwater Management Program. The operating requirements and stormwater capital projects are supported by the stormwater service district levy.
Leaf Collection Fund is used to account for the collection and disposal of leaves from residences and businesses located within designated districts. These districts’ residents and businesses support the fund by payment of a special assessment.
Refuse Collection and Recycling Operations Fund is used to account for the collection of refuse in designated districts and from all County departments and also accounts for the operation of the County’s solid waste reduction and recycling centers.
Refuse Disposal Fund is used to account for the operation of a transfer station to receive refuse collected throughout the County and channel it to either the Energy Resource Recovery Facility (incinerator) or a landfill.
I-95 Refuse Disposal Fund is used to account for the operation of a landfill which is now only used for disposal of ash generated by certain local incinerators.
Community Development Block Grant Fund is used to account for programs to upgrade low and moderate income neighborhoods through the provision of public facilities, home improvements, and public services.
Housing Trust Fund is used to account for the promotion of housing for low and moderate income individuals in the County by providing low cost debt and equity capital in the form of loans, grants, and equity contributions.
HOME Investment Partnership Grant Fund is used to account for affordable housing programs involving acquisition, rehabilitation, new construction, and tenant-based rental assistance.
192
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Alcohol Safety Action Program Fund is used to account for programs to reduce the incidence of driving under the influence (DUI) of alcohol through rehabilitative alcohol/drug education, case management of DUI defendants, referral to alcohol/drug treatment programs and public information. This fund is solely fee supported and is not an appropriated fund within the operating budget. Thus, there is no budgetary comparison schedule for this fund.
193Financial Section
194
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Special Revenue Funds Combining Balance Sheet June 30, 2021
County of Fairfax, Virginia
C ounty Transit
Systems
Dulles Rail Phase I
Transportation Improvement
District
Dulles Rail Phase II
Transportation Improvement
District
C ounty and Regional
Transportation Projects
Tysons Service District
Equity in pooled cash and temporary investments 38,734,918$ 6,832,987 47,616,855 171,956,022 40,680,531
Receivables (net of allowances): Accounts 354,001 79,182 47,483 563,919 49,149 Accrued interest - - - - - Loans - - - - -
Due from intergovernmental units 3,366,877 - - 17,570,372 - Prepaid and other assets - - - - -
Equity in pooled cash and temporary investments - - - - - C ash with fiscal agents - 32,132,187 15,185,680 13,301,461 -
Property held for sale - - - - - Total assets 42,455,796 39,044,356 62,850,018 203,391,774 40,729,680
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - - -
Total assets and deferred outflows of resources 42,455,796$ 39,044,356 62,850,018 203,391,774 40,729,680
Accounts payable and accrued liabilities 15,838,800$ 1,895 2,543,073 3,547,783 125,407 Accrued salaries and benefits - - - 421,674 -
- - - 511,541 - - - - 8,226,795 - - - - - - - 79,183 47,483 410,472 49,149
Performance and other deposits - - - - - Total liabilities 15,838,800 81,078 2,590,556 13,118,265 174,556
DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Total liabilities and deferred inflows of resources 15,838,800 81,078 2,590,556 13,118,265 174,556
FUND BALANCES Nonspendable:
Prepaid amounts - - - - - Total Nonspendable - - - - -
Restricted for: Public safety, courts, and judicial - - - - - General public works - - - - - Stormwater management - - - - - Transportation - 38,963,278 60,259,462 190,273,509 40,555,124 Social services, health and welfare - - - - - Housing and community development - - - - - Parks, recreation, and cultural - - - - - Other purposes - - - - -
Total Restricted - 38,963,278 60,259,462 190,273,509 40,555,124 C ommitted to:
Public safety, courts, and judicial - - - - - Transportation 26,616,996 - - - - Social services, health and welfare - - - - - Housing and community development - - - - -
Total C ommitted 26,616,996 - - - - Unassigned: - - - - -
Total fund balances 26,616,996 38,963,278 60,259,462 190,273,509 40,555,124
42,455,796$ 39,044,356 62,850,018 203,391,774 40,729,680
Unearned revenues
Total liabilities, deferred inflows of resources, and fund balances
ASSETS
C ontract retainages
LIABILITIES
Due to intergovernmental units Interfund payables
195Financial Section
Exhibit D
Special Revenue Funds
Reston Service District
Metrorail Parking System
Pledged Revenue
Federal/ State Grant
C able C ommunications
Early C hildhood Birth-5
Equity in pooled cash and temporary 7,380,134 9,014,899 19,268,171 9,503,031 9,322,735 investments
Receivables (net of allowances): 4,942 70,715 1,717,012 1,530,704 - Accounts
- - - - - Accrued interest - - - - - Loans - - 44,392,072 1,545,926 387 Due from intergovernmental units - - - - - Prepaid and other assets - - - - - Equity in pooled cash and temporary investments - 10,945,422 - - - Restricted assets - C ash with fiscal agents - - - - - Property held for sale
7,385,076 20,031,036 65,377,255 12,579,661 9,323,122 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - - - - Total deferred outflows of resources
7,385,076 20,031,036 65,377,255 12,579,661 9,323,122 Total assets and deferred outflows of resources
16,724 419,302 15,749,659 448,385 1,445,755 Accounts payable and accrued liabilities - - 2,808,631 315,451 353,932 Accrued salaries and benefits - 1,628,017 21,211 - - - - 570,249 - - - - - - -
4,942 - 39,427,747 - - - - - - - Performance and other deposits
21,666 2,047,319 58,577,497 763,836 1,799,687 Total liabilities
DEFERRED INFLOWS OF RESOURCES - - - 809,349 - Unavailable revenue - - - 809,349 - Total deferred inflows of resources
21,666 2,047,319 58,577,497 1,573,185 1,799,687 Total liabilities and deferred inflows of resources
FUND BALANCES Nonspendable:
- - - - - Prepaid amounts - - - - - Total Nonspendable
Restricted for: - - 15,192,096 - - Public safety, courts, and judicial - - - - - General public works - - - - - Stormwater management
7,363,410 17,983,717 1,014,984 - - Transportation - - - - - Social services, health and welfare - - 237,991 - - Housing and community development - - - - - Parks, recreation, and cultural - - 7,072,814 - - Other purposes
7,363,410 17,983,717 23,517,885 - - Total Restricted C ommitted to:
- - - - - Public safety, courts, and judicial - - - - - Transportation - - - - - Social services, health and welfare - - - 11,006,476 7,523,435 Housing and community development - - - 11,006,476 7,523,435 Total C ommitted - - (16,718,127) - - Unassigned:
7,363,410 17,983,717 6,799,758 11,006,476 7,523,435 Total fund balances
7,385,076 20,031,036 65,377,255 12,579,661 9,323,122 continued
Total liabilities, deferred inflows of resources, and fund balances
Unearned revenues
ASSETS
Interfund payables
LIABILITIES
C ontract retainages Due to intergovernmental units
196
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Special Revenue Funds Combining Balance Sheet June 30, 2021
County of Fairfax, Virginia
Fairfax- Falls C hurch C ommunity
Services Board
Reston C ommunity
C enter
Mosaic C ommunity
Development Authority
McLean C ommunity
C enter
Burgundy Village
C ommunity C enter
Equity in pooled cash and temporary investments 53,462,216$ 8,168,952 - 7,015,064 244,925
Receivables (net of allowances): Accounts - 34,509 - 53,092 720 Accrued interest - - 23 - - Loans - - - - -
Due from intergovernmental units - - - - - Prepaid and other assets 110,513 35,298 - 52,360 -
Equity in pooled cash and temporary investments - - - - - Restricted assets - C ash with fiscal agents - - 2,740,837 - - Property held for sale - - - - -
Total assets 53,572,729 8,238,759 2,740,860 7,120,516 245,645
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - - -
Total assets and deferred outflows of resources 53,572,729$ 8,238,759 2,740,860 7,120,516 245,645
Accounts payable and accrued liabilities 5,955,237$ 109,342 31,294 113,555 125 Accrued salaries and benefits 8,820,409 358,936 - 232,550 192
- 143,566 - - - - - - - -
1,182 - - - - - 149,608 - 242,010 720
Performance and other deposits - 3,600 - - - Total liabilities 14,776,828 765,052 31,294 588,115 1,037
DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Total liabilities and deferred inflows of resources 14,776,828 765,052 31,294 588,115 1,037
FUND BALANCES Nonspendable:
Prepaid amounts 110,513 35,298 - 52,360 - Total Nonspendable 110,513 35,298 - 52,360 -
Restricted for: Public safety, courts, and judicial - - - - - General public works - - - - - Stormwater management - - - - - Transportation - - - - - Social services, health and welfare - - - - - Housing and community development - - 2,709,566 - - Parks, recreation, and cultural - 7,438,409 - 6,480,041 244,608 Other purposes - - - - -
Total Restricted - 7,438,409 2,709,566 6,480,041 244,608 C ommitted to:
Public safety, courts, and judicial - - - - - Transportation - - - - - Social services, health and welfare 38,685,388 - - - - Housing and community development - - - - -
Total C ommitted 38,685,388 - - - - Unassigned: - - - - -
Total fund balances 38,795,901 7,473,707 2,709,566 6,532,401 244,608
53,572,729$ 8,238,759 2,740,860 7,120,516 245,645
ASSETS
LIABILITIES
C ontract retainages
Interfund payables Due to intergovernmental units
Total liabilities, deferred inflows of resources, and fund balances
Unearned revenues
197Financial Section
Exhibit D
Special Revenue Funds
E-911
Integrated Pest
Management Program
Stormwater Services
Leaf C ollection
Refuse C ollection and
Recycling Operations
Equity in pooled cash and temporary 22,484,764 5,273,397 100,539,469 5,311,512 4,660,179 investments
- 12,969 407,707 13,395 158,413 - - - - - - - - - -
7,747,027 - 1,876,476 - 15,330 Due from intergovernmental units - - 134,823 - - Prepaid and other assets - - - - - Equity in pooled cash and temporary investments - - - - - C ash with fiscal agents - - - - - Property held for sale
30,231,791 5,286,366 102,958,475 5,324,907 4,833,922 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - - - - Total deferred outflows of resources
30,231,791 5,286,366 102,958,475 5,324,907 4,833,922 Total assets and deferred outflows of resources
608,931 36,284 9,317,161 16,795 562,676 Accounts payable and accrued liabilities 1,947,226 82,155 1,397,212 - 571,275 Accrued salaries and benefits
- - 941,598 - - - - - - - - - - - - - 12,933 407,554 13,390 144,191 - - 568,572 - 60,000 Performance and other deposits
2,556,157 131,372 12,632,097 30,185 1,338,142 Total liabilities
DEFERRED INFLOWS OF RESOURCES 3,517,273 - - - - Unavailable revenue 3,517,273 - - - - Total deferred inflows of resources
6,073,430 131,372 12,632,097 30,185 1,338,142 Total liabilities and deferred inflows of resources
FUND BALANCES Nonspendable:
- - 134,823 - - Prepaid amounts - - 134,823 - - Total Nonspendable
Restricted for: 21,824,340 - - - - Public safety, courts, and judicial
- - - 5,294,722 3,495,780 General public works - - 90,191,555 - - Stormwater management - - - - - Transportation - 2,881,495 - - - Social services, health and welfare - 2,273,499 - - - Housing and community development - - - - - Parks, recreation, and cultural - - - - - Other purposes
21,824,340 5,154,994 90,191,555 5,294,722 3,495,780 Total Restricted C ommitted to:
2,334,021 - - - - Public safety, courts, and judicial - - - - - Transportation - - - - - Social services, health and welfare - - - - - Housing and community development
2,334,021 - - - - Total C ommitted - - - - - Unassigned:
24,158,361 5,154,994 90,326,378 5,294,722 3,495,780 Total fund balances
30,231,791 5,286,366 102,958,475 5,324,907 4,833,922 continued
Total liabilities, deferred inflows of resources, and fund balances
Unearned revenues Interfund payables Due to intergovernmental units
ASSETS
Receivables (net of allowances): Accounts Accrued interest Loans
LIABILITIES
C ontract retainages
198
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Refuse Disposal
I-95 Refuse
Disposal
C ommunity Development
Block Grant
Housing Trust
Equity in pooled cash and temporary investments 67,738,257$ 42,849,645 698,696 23,079,311
6,089,565 559,378 - 33,000 - - - 1,684,331 - - 738,581 11,184,319
Due from intergovernmental units 98,184 - 1,315,330 - Prepaid and other assets - - - -
Equity in pooled cash and temporary investments - - - 1,289,106 C ash with fiscal agents - - - 1,147,620
Property held for sale - - - 1,404,724 Total assets 73,926,006 43,409,023 2,752,607 39,822,411
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - -
Total assets and deferred outflows of resources 73,926,006$ 43,409,023 2,752,607 39,822,411
Accounts payable and accrued liabilities 7,741,684$ 677,485 979,406 470,193 Accrued salaries and benefits 871,732 255,834 83,907 -
81,169 4,334 507,661 39,276 - - - - - - - - - - - -
Performance and other deposits 50,000 - - - Total liabilities 8,744,585 937,653 1,570,974 509,469
DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - - 1,681,517
Total deferred inflows of resources - - - 1,681,517
Total liabilities and deferred inflows of resources 8,744,585 937,653 1,570,974 2,190,986
FUND BALANCES Nonspendable:
Prepaid amounts - - - - Total Nonspendable - - - -
Restricted for: Public safety, courts, and judicial - - - - General public works 65,181,421 42,471,370 - - Stormwater management - - - - Transportation - - - - Social services, health and welfare - - - - Housing and community development - - 1,181,633 37,631,425 Parks, recreation, and cultural - - - - Other purposes - - - -
Total Restricted 65,181,421 42,471,370 1,181,633 37,631,425 C ommitted to:
Public safety, courts, and judicial - - - - Transportation - - - - Social services, health and welfare - - - - Housing and community development - - - -
Total C ommitted - - - - Unassigned: - - - -
Total fund balances 65,181,421 42,471,370 1,181,633 37,631,425
73,926,006$ 43,409,023 2,752,607 39,822,411
Due to intergovernmental units
Total liabilities, deferred inflows of resources, and fund balances
Interfund payables Unearned revenues
LIABILITIES
C ontract retainages
ASSETS
Receivables (net of allowances): Accounts Accrued interest Loans
Special Revenue Funds Combining Balance Sheet June 30, 2021
County of Fairfax, Virginia
199Financial Section
Special Revenue Funds
Exhibit D concluded
HOME Investment Partnerships
Grant
Alcohol Safety Action
Program
Total Special
Revenue Funds
Equity in pooled cash and temporary - 209,455 702,046,125 investments
- 5,289 11,785,144 - - 1,684,354
1,033,111 - 12,956,011 801,159 - 78,729,140 Due from intergovernmental units
- - 332,994 Prepaid and other assets - - 1,289,106 Equity in pooled cash and temporary investments - - 75,453,207 C ash with fiscal agents - - 1,404,724 Property held for sale
1,834,270 214,744 885,680,805 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - - Total deferred outflows of resources
1,834,270 214,744 885,680,805 Total assets and deferred outflows of resources
2,069 6,995 66,766,015 Accounts payable and accrued liabilities 19,731 101,213 18,642,060 Accrued salaries and benefits
- - 3,878,373 - - 8,797,044
833,419 - 834,601 - - 40,989,382 - - 682,172 Performance and other deposits
855,219 108,208 140,589,647 Total liabilities
DEFERRED INFLOWS OF RESOURCES - - 6,008,139 Unavailable revenue - - 6,008,139 Total deferred inflows of resources
855,219 108,208 146,597,786 Total liabilities and deferred inflows of resources
FUND BALANCES Nonspendable:
- - 332,994 Prepaid amounts - - 332,994 Total Nonspendable
Restricted for: - - 37,016,436 Public safety, courts, and judicial - - 116,443,293 General public works - - 90,191,555 Stormwater management - - 356,413,484 Transportation - - 2,881,495 Social services, health and welfare
979,051 - 45,013,165 Housing and community development - - 14,163,058 Parks, recreation, and cultural - - 7,072,814 Other purposes
979,051 - 669,195,300 Total Restricted C ommitted to:
- - 2,334,021 Public safety, courts, and judicial - - 26,616,996 Transportation - 106,536 38,791,924 Social services, health and welfare - - 18,529,911 Housing and community development - 106,536 86,272,852 Total C ommitted - - (16,718,127) Unassigned:
979,051 106,536 739,083,019 Total fund balances
1,834,270 214,744 885,680,805 Total liabilities, deferred inflows of resources, and fund balances
ASSETS
Receivables (net of allowances): Accounts Accrued interest Loans
Unearned revenues
LIABILITIES
C ontract retainages Due to intergovernmental units Interfund payables
200
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
C ounty Transit
Systems
Dulles Rail Phase I
Transportation Improvement
District
Dulles Rail Phase II
Transportation Improvement
District
C ounty and Regional
Transportation Projects
Tysons Service District
Taxes -$ - - - -
- - - - - 37,934,991 - - 67,041,926 - 2,860,625 16,018,557 20,627,295 64,056,367 8,896,284
Fines and forfeitures - - - - - - - - - -
957,035 138,574 153,772 311,580 92,669 141 - - 9,421 -
- - - 86,667 - 41,752,792 16,157,131 20,781,067 131,505,961 8,988,953
General government administration - - - - - Judicial administration - - - - - Public safety - - - - - Public works - - - - - Health and welfare - - - - - C ommunity development 97,035,285 - 29,231,743 51,230,240 202,621 Parks, recreation, and cultural - - - - -
Intergovernmental: C ommunity development 6,536,469 - - 18,869,002 - Education - for Public Schools - - - - -
C apital outlay: General government administration - - - - - Public safety - - - - - Public works - - - - - Health and welfare - - - - - C ommunity development 5,365,595 - - 2,859,709 - Parks, recreation, and cultural - - - - -
Debt service: Principal retirement - 18,715,000 - - - Interest and other charges - 8,741,424 - - - Total expenditures 108,937,349 27,456,424 29,231,743 72,958,951 202,621
Excess (deficiency) of revenues over (under) expenditures (67,184,557) (11,299,293) (8,450,676) 58,547,010 8,786,332
82,217,390 - - - - - - - (40,636,481) -
C apital leases - - - - - 82,217,390 - - (40,636,481) -
15,032,833 (11,299,293) (8,450,676) 17,910,529 8,786,332 11,584,163 50,262,571 68,710,138 172,362,980 31,768,792 26,616,996$ 38,963,278 60,259,462 190,273,509 40,555,124
Fund balances, July 1, 2020
Transfers out
Total other financing sources (uses), net Net change in fund balances
OTHER FINANCING SOURCES (USES)
EXPENDITURES C urrent:
Fund balances, June 30, 2021
Transfers in
Gifts, donations, and contributions Total revenues
C harges for services
Developers' contributions
Recovered costs
REVENUES
Permits, privilege fees, and regulatory licenses Intergovernmental
Revenue from the use of money and property
201Financial Section
Exhibit D-1
Special Revenue Funds
Reston Service District
Metrorail Parking system Pledged Revenue
Federal/ State Grant
C able C ommunications
Early C hildhood Birth to 5
- - - - - Taxes
- - - 19,532,995 11,174 - - 190,885,099 - 4,870
2,304,554 373,818 3,675,111 15 - - - - - 842 Fines and forfeitures - - - - -
16,041 3,051,427 21,526 - - - - 1,567,692 - 7,740 - - 2,236,653 - -
2,320,595 3,425,245 198,386,081 19,533,010 24,626
- 1,676,078 3,188,045 - - - 997,450 - - - - 21,781,088 1,068,901 - - - 1,516,868 - - - - 174,578,990 - 25,112,420
52,688 1,788,199 22,917,691 4,816,317 - - - 72,344 - -
Intergovernmental: - - - - - C ommunity development - - - 2,761,781 - Education - for Public Schools
C apital outlay: - - - 157,905 - General government administration - - 2,057,354 - - Public safety - - - - - Public works - - 588,089 - - Health and welfare - 818,371 3,924,567 202,121 - C ommunity development - - - - - Parks, recreation, and cultural
Debt service: - 5,295,000 43,429 - - Principal retirement - 5,883,835 1,452 - - Interest and other charges
52,688 13,785,405 230,155,400 12,195,070 25,112,420 Total expenditures Excess (deficiency) of revenues over
2,267,907 (10,360,160) (31,769,319) 7,337,940 (25,087,794) (under) expenditures
- 2,206,000 4,432,654 - 32,611,229 - - - (7,125,883) - - - - - - C apital leases - 2,206,000 4,432,654 (7,125,883) 32,611,229
2,267,907 (8,154,160) (27,336,665) 212,057 7,523,435 5,095,503 26,137,877 34,136,423 10,794,419 - 7,363,410 17,983,717 6,799,758 11,006,476 7,523,435
continued
OTHER FINANCING SOURCES (USES) Transfers in
Public works
C ommunity development Parks, recreation, and cultural
Gifts, donations, and contributions
Fund balances, June 30, 2021
Transfers out
Total other financing sources (uses), net Net change in fund balances
Fund balances, July 1, 2020
Total revenues
General government administration Judicial administration Public safety
C urrent:
Intergovernmental
REVENUES
Permits, privilege fees, and regulatory licenses
Developers' contributions Revenue from the use of money and property
C harges for services
Recovered costs
EXPENDITURES
Health and welfare
202
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
Fairfax- Falls C hurch C ommunity
Services Board
Reston C ommunity
C enter
Mosaic C ommunity
Development Authority
McLean C ommunity
C enter
Burgundy Village
C ommunity C enter
Taxes -$ - 2,832,300 - -
- - - - - 16,166,066 - - - - 21,158,240 9,014,309 - 5,245,452 32,830
Fines and forfeitures 5,831 - - - - - - - - -
125,100 157,396 902 33,510 9,974 - - - - - - - - - -
37,455,237 9,171,705 2,833,202 5,278,962 42,804
- - - - - - - - - - - - - - - - - - - -
170,421,383 - - - - - - 52,324 - - - 6,616,280 - 4,269,544 7,507
Intergovernmental: - C ommunity development - - - - - Education - for Public Schools - - - - -
C apital outlay: General government administration - - - - - Public safety - - - - - Public works - - - - - Health and welfare 94,130 - - - - C ommunity development - - - - - Parks, recreation, and cultural - 1,701,616 - 537,401 -
Debt service: Principal retirement - 228,913 - - - Interest and other charges - 28,267 - - - Total expenditures 170,515,513 8,575,076 52,324 4,806,945 7,507
Excess (deficiency) of revenues over (under) expenditures (133,060,276) 596,629 2,780,878 472,017 35,297
147,216,019 - - - - (1,500,000) - (5,861,894) - -
C apital leases - 1,274,161 - - - 145,716,019 1,274,161 (5,861,894) - -
12,655,743 1,870,790 (3,081,016) 472,017 35,297 26,140,158 5,602,917 5,790,582 6,060,384 209,311 38,795,901$ 7,473,707 2,709,566 6,532,401 244,608
Total other financing sources (uses), net Net change in fund balances
Fund balances, July 1, 2020
Public works Health and welfare C ommunity development Parks, recreation, and cultural
C urrent: General government administration Judicial administration
OTHER FINANCING SOURCES (USES)
Public safety
Fund balances, June 30, 2021
Total revenues
Transfers in
REVENUES
Permits, privilege fees, and regulatory licenses Intergovernmental C harges for services
Developers' contributions
Recovered costs
Transfers out
EXPENDITURES
Revenue from the use of money and property
Gifts, donations, and contributions
203Financial Section
Exhibit D-1
E-911
Integrated Pest
Management Program
Stormwater Services
Leaf C ollection
Refuse C ollection and
Recycling Operations
45,429,467 - - - - Taxes
- - 30,500 - - 4,669,326 - 1,876,476 - 121,052
3,590 2,617,743 85,394,760 2,189,885 18,019,956 - - - - - Fines and forfeitures - - 248,441 - -
44,604 12,976 14,132 14,839 328,561 169,097 - 870 - 35,743
- - - - - 50,316,084 2,630,719 87,565,179 2,204,724 18,505,312
- - - - - - - - - -
44,561,882 - - - - - - 33,933,490 2,004,246 17,708,135 - 466,071 - - - - 1,071,013 - - - - - - - -
Intergovernmental: - - - - - C ommunity development - - - - - Education - for Public Schools
C apital outlay: - - - - - General government administration
1,338,100 - - - - Public safety - - 40,664,617 12,986 1,624,773 Public works - - - - - Health and welfare - - - - - C ommunity development - - - - - Parks, recreation, and cultural
Debt service: 3,440,102 - - - - Principal retirement
85,315 - - - - Interest and other charges 49,425,399 1,537,084 74,598,107 2,017,232 19,332,908 Total expenditures
Excess (deficiency) of revenues over 890,685 1,093,635 12,967,072 187,492 (827,596) (under) expenditures
220,145 - - - - - (141,000) (1,125,000) (54,000) (494,000) - - - - - C apital leases
220,145 (141,000) (1,125,000) (54,000) (494,000) 1,110,830 952,635 11,842,072 133,492 (1,321,596)
23,047,531 4,202,359 78,484,306 5,161,230 4,817,376 24,158,361 5,154,994 90,326,378 5,294,722 3,495,780
continued
General government administration Judicial administration
Fund balances, June 30, 2021
Transfers out
Total other financing sources (uses), net Net change in fund balances
Fund balances, July 1, 2020
Public works Health and welfare C ommunity development Parks, recreation, and cultural
Transfers in
Gifts, donations, and contributions
REVENUES
Permits, privilege fees, and regulatory licenses Intergovernmental C harges for services
Developers' contributions Revenue from the use of money and property Recovered costs
OTHER FINANCING SOURCES (USES)
Total revenues EXPENDITURES C urrent:
Public safety
Special Revenue Funds
204
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Refuse Disposal
I-95 Refuse
Disposal
C ommunity Development
Block Grant
Housing Trust
HOME Investment Partnerships
Grant
Taxes -$ - - - -
- - - - - - - 12,645,443 7,169,815 3,604,087
49,245,415 9,904,975 - - - Fines and forfeitures 78,510 - - - -
- - - 732,483 -
1,115,828 321,359 283,833 1,930,958 21,209 9,664 - - 1,500,000 -
- - - - - 50,449,417 10,226,334 12,929,276 11,333,256 3,625,296
- - - - - - - - - - - - - - -
52,148,165 6,147,490 - - - - - - - - - - 22,806,365 1,814,256 3,438,156 - - - - -
Intergovernmental: C ommunity development - - - 1,500,000 - Education - for Public Schools - - - - -
C apital outlay: General government administration - - - - - Public safety - - - - - Public works 4,237,372 2,349,786 - - - Health and welfare - - - - - C ommunity development - - 195,439 2,223,000 - Parks, recreation, and cultural - - - - -
Debt service: Principal retirement - - 459,000 - - Interest and other charges - - 112,284 - - Total expenditures 56,385,537 8,497,276 23,573,088 5,537,256 3,438,156
Excess (deficiency) of revenues over (under) expenditures (5,936,120) 1,729,058 (10,643,812) 5,796,000 187,140
- - - 4,150,098 - (626,000) (186,000) - - -
C apital leases - - - - - (626,000) (186,000) - 4,150,098 -
(6,562,120) 1,543,058 (10,643,812) 9,946,098 187,140 71,743,541 40,928,312 11,825,445 27,685,327 791,911 65,181,421$ 42,471,370 1,181,633 37,631,425 979,051
Parks, recreation, and cultural
OTHER FINANCING SOURCES (USES)
C urrent:
REVENUES
Permits, privilege fees, and regulatory licenses Intergovernmental C harges for services
Developers' contributions Revenue from the use of money and property Recovered costs
General government administration
Gifts, donations, and contributions Total revenues
EXPENDITURES
Fund balances, June 30, 2021
Transfers in Transfers out
Total other financing sources (uses), net Net change in fund balances
Judicial administration Public safety Public works Health and welfare C ommunity development
Fund balances, July 1, 2020
205Financial Section
Alcohol Safety Action
Program
Total Special
Revenue Funds
- 48,261,767 Taxes
- 19,574,669 211 342,119,362
833,678 322,473,459 - 85,183 Fines and forfeitures - 980,924
1,397 9,159,202 - 3,300,368 - 2,323,320
835,286 748,278,254
- 4,864,123 - 997,450
72 67,411,943 - 113,458,394
1,611,965 372,190,829 - 236,456,898 - 10,965,675
Intergovernmental: - 26,905,471 C ommunity development - 2,761,781 Education - for Public Schools
C apital outlay: - 157,905 General government administration - 3,395,454 Public safety - 48,889,534 Public works - 682,219 Health and welfare - 15,588,802 C ommunity development - 2,239,017 Parks, recreation, and cultural
Debt service: - 28,181,444 Principal retirement - 14,852,577 Interest and other charges
1,612,037 949,999,516 Total expenditures Excess (deficiency) of revenues over
(776,751) (201,721,262) (under) expenditures
941,493 273,995,028 - (57,750,258) - 1,274,161 C apital leases
941,493 217,518,931 164,742 15,797,669 (58,206) 723,285,350 106,536 739,083,019
REVENUES
Permits, privilege fees, and regulatory licenses Intergovernmental C harges for services
Developers' contributions Revenue from the use of money and property Recovered costs Gifts, donations, and contributions
Total revenues EXPENDITURES C urrent:
General government administration Judicial administration Public safety Public works Health and welfare C ommunity development
Net change in fund balances Fund balances, July 1, 2020 Fund balances, June 30, 2021
Parks, recreation, and cultural
OTHER FINANCING SOURCES (USES) Transfers in Transfers out
Total other financing sources (uses), net
Exhibit D-1 concluded
Special Revenue Funds
206
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Special Revenue Fund Budgetary Comparison Schedule - County Transit Systems Fund (Budget Basis) For the fiscal year ended June 30, 2021
County of Fairfax, Virginia Exhibit D-2a
Original Final REVENUES Intergovernmental 17,071,034$ 44,701,090 37,934,991 (6,766,099) C harges for services 7,950,000 3,375,000 1,570,653 (1,804,347) Revenue from the use of money and property 756,750 756,750 957,035 200,285 Recovered costs - - 141 141
Total revenues 25,777,784 48,832,840 40,462,820 (8,370,020) EXPENDITURES C ommunity development 107,995,174 122,868,886 107,649,141 15,219,745
Total expenditures 107,995,174 122,868,886 107,649,141 15,219,745 Excess (deficiency) of revenues over
(under) expenditures (82,217,390) (74,036,046) (67,186,321) 6,849,725 OTHER FINANCING SOURCES Transfers in 82,217,390 82,217,390 82,217,390 -
Total other financing sources 82,217,390 82,217,390 82,217,390 - Net change in fund balance -$ 8,181,344 15,031,069 6,849,725
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Special Revenue Fund Budgetary Comparison Schedule - Dulles Rail Phase I Transportation Improvement District Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit D-2bCounty of Fairfax, Virginia
Original Final REVENUES C harges for services 16,149,387$ 16,149,387 16,018,557 (130,830) Revenue from the use of money and property - - 138,574 138,574
Total revenues 16,149,387 16,149,387 16,157,131 7,744 EXPENDITURES Debt service:
Principal retirement 7,525,000 20,525,000 18,715,000 1,810,000 Interest and other charges:
Interest 6,932,600 6,932,600 8,741,424 (1,808,824) Total expenditures 14,457,600 27,457,600 27,456,424 1,176
Excess (deficiency) of revenues over (under) expenditures 1,691,787 (11,308,213) (11,299,293) 8,920
Net change in fund balance 1,691,787$ (11,308,213) (11,299,293) 8,920
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
207Financial Section
Special Revenue Funds
Original Final REVENUES C harges for services 20,484,176$ 20,484,176 20,627,295 143,119 Revenue from the use of money and property - - 153,772 153,772
Total revenues 20,484,176 20,484,176 20,781,067 296,891 EXPENDITURES C ommunity development - 42,044,976 29,231,743 12,813,233 Debt service:
Bond issuance costs and other 500,000 500,000 - 500,000 Total expenditures 500,000 42,544,976 29,231,743 13,313,233
Excess (deficiency) of revenues over (under) expenditures 19,984,176 (22,060,800) (8,450,676) 13,610,124
Net change in fund balance 19,984,176$ (22,060,800) (8,450,676) 13,610,124
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Exhibit D-2c Special Revenue Fund Budgetary Comparison Schedule - Dulles Rail Phase II Transportation Improvement District Fund (Budget Basis) For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
County of Fairfax, Virginia Exhibit D-2d Special Revenue Fund Budgetary Comparison Schedule - County and Regional Transportation Projects (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES Intergovernmental 35,340,938$ 98,763,367 49,652,959 (49,110,408) C harges for services 61,201,872 61,201,872 64,056,367 2,854,495 Revenue from the use of money and property - - 330,843 330,843 Recovered costs - - 9,421 9,421 Gifts, donations, and contributions 130,000 130,000 86,666 (43,334)
Total revenues 96,672,810 160,095,239 114,136,256 (45,958,983) EXPENDITURES C ommunity development 58,242,329 382,007,664 53,767,237 328,240,427
Total expenditures 58,242,329 382,007,664 53,767,237 328,240,427 Excess (deficiency) of revenues over
(under) expenditures 38,430,481 (221,912,425) 60,369,019 282,281,444 OTHER FINANCING SOURCES (USES) Transfers out (38,430,481) (40,636,481) (40,636,481) - Revenue bonds issued - 100,000,000 - (100,000,000)
Total other financing sources (uses), net (38,430,481) 59,363,519 (40,636,481) (100,000,000) Net change in fund balance -$ (162,548,906) 19,732,538 182,281,444
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
208
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Special Revenue Fund Budgetary Comparison Schedule - Tysons Service District Fund (Budget Basis) For the fiscal year ended June 30, 2021
County of Fairfax, Virginia Exhibit D-2e
Original Final REVENUES C harges for services 8,999,317$ 8,999,317 8,896,284 (103,033) Revenue from the use of money and property - - 92,669 92,669
Total revenues 8,999,317 8,999,317 8,988,953 (10,364) EXPENDITURES C ommunity development - 10,902,868 202,621 10,700,247
Total expenditures - 10,902,868 202,621 10,700,247 Excess (deficiency) of revenues over
(under) expenditures 8,999,317 (1,903,551) 8,786,332 10,689,883 Net change in fund balance 8,999,317$ (1,903,551) 8,786,332 10,689,883
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2f
Original Final REVENUES C harges for services 2,308,810$ 2,308,810 2,304,554 (4,256) Revenue from the use of money and property - - 16,041 16,041
Total revenues 2,308,810 2,308,810 2,320,595 11,785 EXPENDITURES C ommunity development - 915,248 52,688 862,560
Total expenditures - 915,248 52,688 862,560 Excess (deficiency) of revenues over
(under) expenditures 2,308,810 1,393,562 2,267,907 874,345 Net change in fund balance 2,308,810$ 1,393,562 2,267,907 874,345
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Special Revenue Fund Budgetary Comparison Schedule - Reston Service District (Budget Basis) For the fiscal year ended June 30, 2021
209Financial Section
Special Revenue Funds
Special Revenue Fund Budgetary Comparison Schedule - Metrorail Parking System Pledged Revenue (Budget Basis) For the fiscal year ended June 30, 2021
County of Fairfax, Virginia Exhibit D-2g
Special Revenue Fund Budgetary Comparison Schedule - Federal/State Grant Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES C harges for services 4,704,319$ 150,000 373,818 223,818 Revenue from the use of money and property 6,500,000 3,050,000 3,051,427 1,427
Total revenues 11,204,319 3,200,000 3,425,245 225,245 EXPENDITURES C ommunity development 3,295,000 5,774,804 3,003,668 2,771,136 Debt service:
Principal retirement 5,295,000 5,259,256 5,295,000 (35,744) Interest and other charges:
Interest 6,849,113 5,919,857 5,883,835 36,022 Total expenditures 15,439,113 16,953,917 14,182,503 2,771,414
Excess (deficiency) of revenues over (under) expenditures (4,234,794) (13,753,917) (10,757,258) 2,996,659
OTHER FINANCING SOURCES Transfers in - 2,206,000 2,206,000 -
Total other financing sources - 2,206,000 2,206,000 - Net change in fund balance (4,234,794)$ (11,547,917) (8,551,258) 2,996,659
Budgeted Amounts Actual Amounts (Budget Basis)
Variance from Final Budget
Positive (Negative)
County of Fairfax, Virginia Exhibit D-2h
Original Final REVENUES Intergovernmental 115,420,883$ 496,240,941 226,761,398 (269,479,543) C harges for services - - 3,675,111 3,675,111 Revenue from the use of money and property - - 21,526 21,526 Recovered costs - 17,395,698 1,567,692 (15,828,006) Gifts, donations, and contributions - 926,195 2,236,653 1,310,458
Total revenues 115,420,883 514,562,834 234,262,380 (280,300,454) EXPENDITURES General government administration 119,853,537 313,094,066 5,058,995 308,035,071 Judicial administration - 386,173 1,121,984 (735,811) Public safety - 16,352,592 24,047,112 (7,694,520) Public works - - 1,516,868 (1,516,868) Health and welfare - 48,612,202 172,391,077 (123,778,875) C ommunity development - 173,943,973 26,842,258 147,101,715 Parks, recreation, and cultural - 638 72,344 (71,706)
Total expenditures 119,853,537 552,389,644 231,050,638 321,339,006 Excess (deficiency) of revenues over
(under) expenditures (4,432,654) (37,826,810) 3,211,742 41,038,552 OTHER FINANCING SOURCES Transfers in 4,432,654 14,675,987 4,432,654 (10,243,333)
Total other financing sources 4,432,654 14,675,987 4,432,654 (10,243,333) Net change in fund balance -$ (23,150,823) 7,644,396 30,795,219
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
210
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Exhibit D-2i
Special Revenue Fund Budgetary Comparison Schedule - Early Childhood Birth to 5 Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES Permits, privilege fees, and regulatory licenses 20,215,042$ 20,215,042 19,532,995 (682,047) C harges for services - - 15 15
Total revenues 20,215,042 20,215,042 19,533,010 (682,032) EXPENDITURES C ommunity development 10,113,722 18,986,762 9,433,289 9,553,473
Total expenditures 10,113,722 18,986,762 9,433,289 9,553,473 Excess of revenues
over expenditures 10,101,320 1,228,280 10,099,721 8,871,441 OTHER FINANCING USES Transfers out (7,125,883) (7,125,883) (7,125,883) - Transfers out to component units (2,761,781) (2,761,781) (2,761,781) -
Total other financing uses (9,887,664) (9,887,664) (9,887,664) - Net change in fund balance 213,656$ (8,659,384) 212,057 8,871,441
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2j
Original Final REVENUES Permits, privilege fees, and regulatory licenses 15,353$ 15,353 11,174 (4,179) Intergovernmental 44,689 44,689 4,870 (39,819) Fines and forfeitures - - 842 842 Recovered costs 155,918 155,918 7,740 (148,178)
Total revenues 215,960 215,960 24,626 (191,334) EXPENDITURES Health and welfare 32,780,360 32,827,189 25,112,420 7,714,769
Total expenditures 32,780,360 32,827,189 25,112,420 7,714,769 Excess (deficiency) of revenues over
(under) expenditures (32,564,400) (32,611,229) (25,087,794) 7,523,435 OTHER FINANCING USES Transfers in 32,564,400 32,611,229 32,611,229 -
Total other financing uses 32,564,400 32,611,229 32,611,229 - Net change in fund balance -$ - 7,523,435 7,523,435
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Special Revenue Fund Budgetary Comparison Schedule - Cable Communications Fund (Budget Basis) For the fiscal year ended June 30, 2021
211Financial Section
Special Revenue Funds
Special Revenue Fund Budgetary Comparison Schedule - Reston Community Center Fund (Budget Basis) For the fiscal year ended June 30, 2021
County of Fairfax, Virginia Exhibit D-2k
Original Final REVENUES Intergovernmental 14,959,425$ 14,959,425 16,166,066 1,206,641 C harges for services 20,333,676 20,333,676 21,158,240 824,564 Fines and forfeitures 14,100 14,100 5,831 (8,269) Revenue from the use of money and property - - 125,100 125,100
Total revenues 35,307,201 35,307,201 37,455,237 2,148,036 EXPENDITURES Health and welfare 182,861,770 188,436,413 170,513,493 17,922,920
Total expenditures 182,861,770 188,436,413 170,513,493 17,922,920 Excess (deficiency) of revenues over
(under) expenditures (147,554,569) (153,129,212) (133,058,256) 20,070,956 OTHER FINANCING SOURCES Transfers in 147,554,569 147,216,019 147,216,019 - Transfers out - (1,500,000) (1,500,000) -
Total other financing sources 147,554,569 145,716,019 145,716,019 - Net change in fund balance -$ (7,413,193) 12,657,763 20,070,956
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2l
Original Final REVENUES C harges for services 9,510,445$ 9,510,445 9,014,308 (496,137) Revenue from the use of money and property 293,086 293,086 157,396 (135,690)
Total revenues 9,803,531 9,803,531 9,171,704 (631,827) EXPENDITURES Parks, recreation, and cultural 9,584,898 11,391,235 7,300,914 4,090,321
Total expenditures 9,584,898 11,391,235 7,300,914 4,090,321 Excess (deficiency) of revenues over
(under) expenditures 218,633 (1,587,704) 1,870,790 3,458,494 Net change in fund balance 218,633$ (1,587,704) 1,870,790 3,458,494
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Special Revenue Fund Budgetary Comparison Schedule - Fairfax-Falls Church Community Services Board Fund (Budget Basis) For the fiscal year ended June 30, 2021
212
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Exhibit D-2m
Original Final REVENUES C harges for services 6,035,824$ 6,035,824 5,245,452 (790,372) Revenue from the use of money and property 153,460 153,460 33,510 (119,950)
Total revenues 6,189,284 6,189,284 5,278,962 (910,322) EXPENDITURES Parks, recreation, and cultural 6,081,083 7,078,257 4,806,945 2,271,312
Total expenditures 6,081,083 7,078,257 4,806,945 2,271,312 Excess (deficiency) of revenues over
(under) expenditures 108,201 (888,973) 472,017 1,360,990 Net change in fund balance 108,201$ (888,973) 472,017 1,360,990
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2n
Original Final REVENUES C harges for services 34,415$ 34,415 32,830 (1,585) Revenue from the use of money and property 46,138 11,450 9,974 (1,476)
Total revenues 80,553 45,865 42,804 (3,061) EXPENDITURES Parks, recreation, and cultural 46,596 137,878 7,507 130,371
Total expenditures 46,596 137,878 7,507 130,371 Excess (deficiency) of revenues over
(under) expenditures 33,957 (92,013) 35,297 127,310 Net change in fund balance 33,957$ (92,013) 35,297 127,310
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Special Revenue Fund Budgetary Comparison Schedule - Burgundy Village Community Center Fund (Budget Basis) For the fiscal year ended June 30, 2021
Special Revenue Fund Budgetary Comparison Schedule - McLean Community Center Fund (Budget Basis) For the fiscal year ended June 30, 2021
213Financial Section
Special Revenue Fund Budgetary Comparison Schedule - E-911 Fund (Budget Basis) For the fiscal year ended June 30, 2021
Special Revenue Fund Budgetary Comparison Schedule - Integrated Pest Management Program Fund (Budget Basis) For the fiscal year ended June 30, 2021
Special Revenue Funds
County of Fairfax, Virginia Exhibit D-2o
Original Final REVENUES Local sales and use taxes 46,986,272$ 46,986,272 45,429,467 (1,556,805) Intergovernmental 3,396,251 3,396,251 4,669,326 1,273,075 C harges for Services - - 3,590 3,590 Revenue from the use of money and property 10,000 10,000 44,604 34,604 Recovered costs 150,000 150,000 169,097 19,097
Total revenues 50,542,523 50,542,523 50,316,084 (226,439) EXPENDITURES Public safety 52,585,811 67,375,308 49,425,400 17,949,908
Total expenditures 52,585,811 67,375,308 49,425,400 17,949,908 Excess (deficiency) of revenues over
(under) expenditures (2,043,288) (16,832,785) 890,684 17,723,469 OTHER FINANCING SOURCES Transfers in - 220,145 220,145 -
Total other financing sources - 220,145 220,145 - Net change in fund balance (2,043,288)$ (16,612,640) 1,110,829 17,723,469
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2p
Original Final REVENUES C harges for services 2,639,992$ 2,639,992 2,617,743 (22,249) Revenue from the use of money and property 7,691 7,691 12,976 5,285
Total revenues 2,647,683 2,647,683 2,630,719 (16,964) EXPENDITURES Health and welfare 1,870,460 1,901,889 466,071 1,435,818 C ommunity development 1,443,795 1,618,739 1,071,013 547,726
Total expenditures 3,314,255 3,520,628 1,537,084 1,983,544 Excess (deficiency) of revenues over
(under) expenditures (666,572) (872,945) 1,093,635 1,966,580 OTHER FINANCING USES Transfers out (141,000) (141,000) (141,000) -
Total other financing uses (141,000) (141,000) (141,000) - Net change in fund balance (807,572)$ (1,013,945) 952,635 1,966,580
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
214
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit D-2qCounty of Fairfax, Virginia
Original Final REVENUES Permits, privilege fees, and regulatory licenses -$ - 30,500 30,500 Intergovernmental - 5,554,269 1,876,476 (3,677,793) C harges for services 85,089,976 85,089,976 85,394,760 304,784 Developers' contributions - - 248,441 248,441 Revenue from the use of money and property - - 14,132 14,132 Recovered costs - - 870 870
Total revenues 85,089,976 90,644,245 87,565,179 (3,079,066) EXPENDITURES Public works 83,964,976 255,914,463 74,598,089 181,316,374
Total expenditures 83,964,976 255,914,463 74,598,089 181,316,374 Excess (deficiency) of revenues over
(under) expenditures 1,125,000 (165,270,218) 12,967,090 178,237,308 OTHER FINANCING SOURCES (USES) General obligation bonds issued - 88,000,000 - (88,000,000) Transfers out (1,125,000) (1,125,000) (1,125,000) -
Total other financing sources (uses), net (1,125,000) 86,875,000 (1,125,000) (88,000,000) Net change in fund balance -$ (78,395,218) 11,842,090 90,237,308
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2r
Original Final REVENUES C harges for services 2,122,947$ 2,122,947 2,189,885 66,938 Revenue from the use of money and property 68,304 68,304 14,839 (53,465)
Total revenues 2,191,251 2,191,251 2,204,724 13,473 EXPENDITURES Public works 2,372,031 2,405,565 2,017,232 388,333
Total expenditures 2,372,031 2,405,565 2,017,232 388,333 Excess (deficiency) of revenues over
(under) expenditures (180,780) (214,314) 187,492 401,806 OTHER FINANCING USES Transfers out (54,000) (54,000) (54,000) -
Total other financing uses (54,000) (54,000) (54,000) - Net change in fund balance (234,780)$ (268,314) 133,492 401,806
Actual Amounts (Budget Basis)
Budgeted Amounts
Variance from Final Budget
Positive (Negative)
Special Revenue Fund Budgetary Comparison Schedule - Leaf Collection Fund (Budget Basis) For the fiscal year ended June 30, 2021
Special Revenue Fund Budgetary Comparison Schedule - Stormwater Services Fund (Budget Basis) For the fiscal year ended June 30, 2021
215Financial Section
Special Revenue Funds
Special Revenue Fund Budgetary Comparison Schedule - Refuse Collection and Recycling Operations Fund (Budget Basis) For the fiscal year ended June 30, 2021
Special Revenue Fund Budgetary Comparison Schedule - Refuse Disposal Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit D-2sCounty of Fairfax, Virginia
Original Final REVENUES Intergovernmental 125,288$ 125,288 121,052 (4,236) C harges for services 17,950,016 17,950,016 18,019,956 69,940 Revenue from the use of money and property 246,500 246,500 328,561 82,061 Recovered costs 29,873 29,873 35,743 5,870
Total revenues 18,351,677 18,351,677 18,505,312 153,635 EXPENDITURES Public works 20,442,823 21,700,522 19,332,908 2,367,614
Total expenditures 20,442,823 21,700,522 19,332,908 2,367,614 Excess (deficiency) of revenues over
(under) expenditures (2,091,146) (3,348,845) (827,596) 2,521,249 OTHER FINANCING USES Transfers out (494,000) (494,000) (494,000) -
Total other financing uses (494,000) (494,000) (494,000) - Net change in fund balance (2,585,146)$ (3,842,845) (1,321,596) 2,521,249
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Exhibit D-2tCounty of Fairfax, Virginia
Original Final REVENUES Permits, privilege fees, and regulatory licenses 82,320$ 82,320 - (82,320) C harges for services 54,101,318 54,101,318 49,245,415 (4,855,903) Revenue from the use of money and property 1,653,100 1,653,100 1,115,828 (537,272) Recovered costs - - 9,664 9,664 Fines and forfeitures - - 78,510 78,510
Total revenues 55,836,738 55,836,738 50,449,417 (5,387,321) EXPENDITURES Public works 56,527,725 63,430,485 56,385,537 7,044,948
Total expenditures 56,527,725 63,430,485 56,385,537 7,044,948 Excess (deficiency) of revenues over
(under) expenditures (690,987) (7,593,747) (5,936,120) 1,657,627 OTHER FINANCING USES Transfers out (626,000) (626,000) (626,000) -
Total other financing uses (626,000) (626,000) (626,000) - Net change in fund balance (1,316,987)$ (8,219,747) (6,562,120) 1,657,627
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
216
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Exhibit D-2u
Special Revenue Fund Budgetary Comparison Schedule - Community Development Block Grant Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES C harges for services 9,861,250$ 9,861,250 9,904,975 43,725 Revenue from the use of money and property 641,000 641,000 321,359 (319,641)
Total revenues 10,502,250 10,502,250 10,226,334 (275,916) EXPENDITURES Public works 11,277,195 19,325,318 8,490,865 10,834,453
Total expenditures 11,277,195 19,325,318 8,490,865 10,834,453 Excess (deficiency) of revenues over
(under) expenditures (774,945) (8,823,068) 1,735,469 10,558,537 OTHER FINANCING USES Transfers out (186,000) (186,000) (186,000) -
Total other financing uses (186,000) (186,000) (186,000) - Net change in fund balance (960,945)$ (9,009,068) 1,549,469 10,558,537
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2v
Original Final REVENUES Intergovernmental -$ 22,473,908 12,645,443 (9,828,465) C harges for services - 2,813 - (2,813) Revenue from the use of money and property 5,609,339 - 389,580 389,580
Total revenues 5,609,339 22,476,721 13,035,023 (9,441,698) EXPENDITURES C ommunity development 5,038,055 32,874,230 23,001,804 9,872,426 Debt service:
Principal retirement 459,000 459,000 459,000 - Interest and other charges:
Interest 112,284 112,284 112,284 - Total expenditures 5,609,339 33,445,514 23,573,088 9,872,426
Excess (deficiency) of revenues over (under) expenditures - (10,968,793) (10,538,065) 430,728
Net change in fund balance -$ (10,968,793) (10,538,065) 430,728
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
Special Revenue Fund Budgetary Comparison Schedule - I-95 Refuse Disposal Fund (Budget Basis) For the fiscal year ended June 30, 2021
217Financial Section
Special Revenue Funds
Original Final REVENUES Developers' contributions -$ - 732,483 732,483 Revenue from the use of money and property 150,000 150,000 59,638 (90,362) Other Revenue 3,511,782 3,511,782 4,887,388 1,375,606
Total revenues 3,661,782 3,661,782 5,679,509 2,017,727 EXPENDITURES C ommunity development 3,661,782 25,217,181 6,354,210 18,862,971
Total expenditures 3,661,782 25,217,181 6,354,210 18,862,971 Excess (deficiency) of revenues over
(under) expenditures - (21,555,399) (674,701) 20,880,698 OTHER FINANCING SOURCES Transfers out - (1,500,000) (1,500,000) -
Total other financing sources - (1,500,000) (1,500,000) - Net change in fund balance -$ (23,055,399) (2,174,701) 20,880,698
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
County of Fairfax, Virginia Exhibit D-2w
Exhibit D-2xCounty of Fairfax, Virginia Special Revenue Fund Budgetary Comparison Schedule - HOME Investment Partnership Grant Fund (Budget Basis) For the fiscal year ended June 30, 2021
Special Revenue Fund Budgetary Comparison Schedule - Housing Trust Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES Intergovernmental -$ 4,949,448 3,604,087 (1,345,361) Revenue from the use of money and property 1,940,695 1,440,079 48,546 (1,391,533)
Total revenues 1,940,695 6,389,527 3,652,633 (2,736,894) EXPENDITURES C ommunity development 1,940,695 6,080,769 3,438,156 2,642,613
Total expenditures 1,940,695 6,080,769 3,438,156 2,642,613 Excess (deficiency) of revenues over
(under) expenditures - 308,758 214,477 (94,281) Net change in fund balance -$ 308,758 214,477 (94,281)
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
218
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
219Financial Section
The Debt Service Funds are used to account for the accumulation of resources for and the payments of bond principal, interest, and related expenses.
Debt Service Fund is used to account for the funds accumulated and expended for the payment of principal, interest, and other costs applicable to general obligation bond issues, certain lease revenue bonds, and loans received from the Literary Fund of Virginia.
Debt Service Fund Mosaic Community Development Authority Fund is used to account for the accumulation of resources for and the payments of bond principal, interest, and related expenses on debt of the Mosaic Community Development Authority. This fund is not appropriated in the County’s operating budget.
Debt Service Funds
220
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit ECounty of Fairfax, Virginia Debt Service Funds Combining Balance Sheet June 30, 2021
Debt Service
Mosaic C ommunity
Development Authority
Total Debt Service Funds
ASSETS Equity in pooled cash and temporary investments 2,359,479$ - 2,359,479 Accrued interest - 40 40 Loan to component unit 9,599,400 - 9,599,400 Lease to component unit 34,925,000 - 34,925,000 Restricted assets:
Restricted assets - C ash with fiscal agents 50 4,920,141 4,920,191 Investments
Total assets 46,883,929 4,920,181 51,804,110
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - -
Total assets and deferred outflows of resources 46,883,929$ 4,920,181 51,804,110
LIABILITIES Liabilities:
Accounts payable and accrued liabilities 296,629$ - 296,629 Unearned revenues 34,925,000 - 34,925,000
Total liabilities 35,221,629 - 35,221,629
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - -
Total liabilities and deferred inflows of resources 35,221,629 - 35,221,629
FUND BALANCES Restricted for:
Debt service 6,000,000 4,920,181 10,920,181 Total Restricted 6,000,000 4,920,181 10,920,181
C ommitted to: Debt service 5,662,300 - 5,662,300
Total C ommitted 5,662,300 - 5,662,300 Total fund balance 11,662,300 4,920,181 16,582,481
Total liabilities, deferred inflows of resources, and fund balance 46,883,929$ 4,920,181 51,804,110
221Financial Section
Debt Service Fund
Exhibit E-1County of Fairfax, Virginia Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
Debt Service
Mosaic C ommunity
Development Authority
Total Debt
Service Funds
REVENUES Intergovernmental 3,742,322$ - 3,742,322 Revenue from the use of money and property 2,164,178 9,778 2,173,956
Total revenues 5,906,500 9,778 5,916,278 EXPENDITURES Principal retirement:
C ounty 86,769,000 62,155,000 148,924,000 Schools 135,581,000 - 135,581,000
Interest: C ounty 42,740,270 4,314,600 47,054,870 Schools 60,311,856 - 60,311,856
Other charges: Bond issuance costs and other 2,425,396 908,527 3,333,923 Arbitrage rebate payments 32,600 - 32,600
Total expenditures 327,860,122 67,378,127 395,238,249 Deficiency of revenues under expenditures (321,953,622) (67,368,349) (389,321,971)
OTHER FINANCING SOURCES (USES) Transfers in from:
General Fund 329,222,805 - 329,222,805 Special revenue funds - 3,760,513 3,760,513 C apital projects funds 739,140 - 739,140
Transfers out (12,038,000) - (12,038,000) General obligation refunding bonds issued 294,060,000 - 294,060,000 Revenue refunding bonds issued - 55,650,000 55,650,000 Premium on revenue refunding bonds issued - 5,682,049 5,682,049 General obligation payments to refunded bonds escrow agent (293,126,253) - (293,126,253)
Total other financing sources 318,857,692 65,092,562 383,950,254 Net change in fund balance (3,095,930) (2,275,787) (5,371,717)
Fund balances, July 1, 2020 14,758,230 7,195,968 21,954,198 Fund balances, June 30, 2021 11,662,300$ 4,920,181 16,582,481
222
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Debt Service Fund
Exhibit E-2County of Fairfax, Virginia Debt Service Fund Budgetary Comparison Schedule - Debt Service Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES Intergovernmental 2,528,000$ 2,528,000 2,065,965 (462,035)
Total revenues 2,528,000 2,528,000 2,065,965 (462,035) EXPENDITURES Principal retirement:
C ounty 84,681,300 87,069,000 86,769,000 300,000 Schools 130,298,700 135,581,000 135,581,000 -
Interest: C ounty 49,179,952 43,304,376 42,740,269 564,107 Schools 70,517,008 60,708,014 60,311,856 396,158
Bond issuance costs and other 2,000,000 1,999,135 1,703,565 295,570 Total expenditures 336,676,960 328,661,525 327,105,690 1,555,835
Excess (deficiency) of revenues over (under) expenditures (334,148,960) (326,133,525) (325,039,725) 1,093,800
OTHER FINANCING SOURCES (USES) General obligation bonds issued 500,000 500,000 918,534 418,534 Transfers in from:
General Fund 329,222,805 329,222,805 329,222,805 - Other funds 4,426,155 4,426,155 4,426,155 -
Transfers out - (12,038,000) (12,038,000) - Total other financing sources, net 334,148,960 322,110,960 322,529,494 418,534
Net change in fund balance, net -$ (4,022,565) (2,510,231) 1,512,334
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
223Financial Section
Capital Projects Funds
224
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
The Capital Projects Funds are used to account for financial resources used for all general County construction projects other than enterprise fund construction.
Contributed Roadway Improvement Fund is used to account for contributions received from developers to fund specific projects in various growth areas of the County.
Library Construction Fund is used to account for design and construction of new County libraries, renovations of existing facilities, and capital equipment expenditures authorized by voter referendum. Projects are funded from the sale of bonds.
County Construction Fund is used to account for renovations, maintenance, and on-going initiatives involving County, FCPA, and FCPS properties. Projects are funded from a variety of sources including, but not limited to the General Fund, aid from the State, and the sale of bonds.
Capital Renewal Construction Fund is used to account for the planned replacement of County government building subsystems such as roofs, electrical systems, HVAC systems, and plumbing systems that have reached the end of their useful life cycle. Projects are funded by the General Fund.
Transportation Improvements Fund is used to account for road construction and repair authorized by voter referendum. Projects are funded primarily from the sale of bonds. Other sources of funding are developers’ contributions and transfers from other funds.
Pedestrian Walkway Improvements Fund is used to account for the design and construction of sidewalks to provide safe walking conditions for public school students. The program is undertaken in cooperation with the FCPS and generally involves projects which link residential areas and public schools. Projects are funded by the General Fund.
Metro Operations and Construction Fund is used to account for subsidies to the WMATA for Metrobus/ Metrorail operations and Metrorail construction. The cost of the operations and construction is shared by all local jurisdictions in the Washington, D.C. metropolitan area.
225Financial Section
Public Safety Construction Fund is used to account for the funding of public safety projects, including the design and construction of fire stations, police stations, and the Public Safety Academy. Projects are funded by the sale of bonds.
Commercial Revitalization Program Fund is used to account for the development and revitalization of commercial centers. The improvements financed through the program include moving utilities underground, sidewalk construction, street lighting, tree planting, and other pedestrian amenities. Projects are funded by the sale of bonds. This fund was closed at the end of FY 2021.
Pro Rata Drainage Construction Fund is used to account for storm drainage projects in accordance with the Pro Rata Share Program approved by the Board of Supervisors on December 16, 1991. Under this program, funding is obtained from land developers who pay a pro rata share of the total estimated cost of necessary storm drainage improvements.
Environmental and Energy Program Fund is used to account for the funding of projects that supports the County’s environmental initiatives and energy strategies. Projects are funded mostly by the General Fund. Housing Assistance Program Fund is used to account for the development of low and moderate income housing and the support of public improvement projects in low and moderate income neighborhoods. This fund was closed at the end of FY 2021.
The Penny for Affordable Housing Fund is used to account for the planned allocation of funding by the Board of Supervisors to prioritize and monitor affordable housing preservation initiatives. Projects are funded by the amount dedicated by the Board; original method to determine the amount of dedication was the value of one penny of the real estate tax rate.
Capital Projects Funds
226
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Capital Projects Funds Combining Balance Sheet June 30, 2021
County of Fairfax, Virginia
C ontributed Roadway
Improvement Library
C onstruction C ounty
C onstruction
C apital Renewal
C onstruction ASSETS
Equity in pooled cash and temporary investments 85,519,892$ 2,918,703 36,695,657 44,932,114 Receivables:
Accounts - - 151,851 - Accrued interest - - - - Loans - - - -
Due from intergovernmental units - - 231,527 - Restricted assets:
Equity in pooled cash and temporary investments - 6,360,695 - - C ash with fiscal agents - - 1,424,916 -
Total assets 85,519,892 9,279,398 38,503,951 44,932,114
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - -
Total assets and deferred outflows of resources 85,519,892$ 9,279,398 38,503,951 44,932,114
LIABILITIES Liabilities:
Accounts payable and accrued liabilities 44,736$ 446,536 4,204,270 1,227,252 Accrued salaries and benefits - - 35,037 - C ontract retainages - 120,252 963,309 - Due to component units - - 1,939,888 - Unearned revenues - - 24,639,226 - Performance and other deposits 37,134,502 - 1,219,059 -
Total liabilities 37,179,238 566,788 33,000,789 1,227,252
DEFERRED INFLOW OF RESOURCES Unavailable revenue - - - -
Total deferred inflows of resources - - - -
37,179,238 566,788 33,000,789 1,227,252
FUND BALANCES Nonspendable:
Total Nonspendable - - - - Restricted for:
C apital projects 48,340,654 8,712,610 - - Total Restricted 48,340,654 8,712,610 - -
C ommitted to: C apital projects - - 5,503,162 43,704,862
Total C ommitted - - 5,503,162 43,704,862 Total fund balances 48,340,654 8,712,610 5,503,162 43,704,862
85,519,892$ 9,279,398 38,503,951 44,932,114 Total liabilities, deferred inflows of resources, and fund balances
Total liabilities and deferred inflows of resources
227Financial Section
Capital Projects Funds
Exhibit F
Transportation Improvements
Pedestrian Walkway
Improvements
Metro Operations
and C onstruction
ASSETS - 4,093,401 - Equity in pooled cash and temporary investments
Receivables: 2,439,680 - - Accounts
- - - Accrued interest - - - Loans - 17,516 - Due from intergovernmental units
Restricted assets: 6,897,107 - 1,018,329 Equity in pooled cash and temporary investments
- - - C ash with fiscal agents 9,336,787 4,110,917 1,018,329 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - - Total deferred outflows of resources
9,336,787 4,110,917 1,018,329 Total assets and deferred outflows of resources
LIABILITIES Liabilities:
1,056,061 275,982 - Accounts payable and accrued liabilities - 16,669 - Accrued salaries and benefits
741,812 24,655 - C ontract retainages - - - Due to component units - - - Unearned revenues - 128,722 - Performance and other deposits
1,797,873 446,028 - Total liabilities
DEFERRED INFLOW OF RESOURCES - - - Unavailable revenue - - - Total deferred inflows of resources
1,797,873 446,028 -
FUND BALANCES Nonspendable:
- - - Total Nonspendable Restricted for:
7,538,914 - 1,018,329 C apital projects 7,538,914 - 1,018,329 Total Restricted
C ommitted to: - 3,664,889 - C apital projects - 3,664,889 - Total C ommitted
7,538,914 3,664,889 1,018,329 Total fund balances
9,336,787 4,110,917 1,018,329 continued
Total liabilities, deferred inflows of resources, and fund balances
Total liabilities and deferred inflows of resources
228
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Capital Projects Funds Combining Balance Sheet June 30, 2021
Public Safety
C onstruction
Pro Rata Drainage
C onstruction
Environmental
and Energy Program
ASSETS Equity in pooled cash and temporary investments 9,750,000$ 5,772,444 12,602,452 Receivables:
Accounts - - - Accrued interest - - - Loans - - -
Due from intergovernmental units - - - Restricted assets:
Equity in pooled cash and temporary investments 1,462,758 - - C ash with fiscal agents 9,574,602 - -
Total assets 20,787,360 5,772,444 12,602,452
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - -
Total assets and deferred outflows of resources 20,787,360$ 5,772,444 12,602,452
LIABILITIES Liabilities:
Accounts payable and accrued liabilities 4,824,769$ - 125,349 Accrued salaries and benefits - - - C ontract retainages 3,919,471 - - Due to component units - - 61,026 Unearned revenues - - - Performance and other deposits - 61,125 -
Total liabilities 8,744,240 61,125 186,375
DEFERRED INFLOW OF RESOURCES Unavailable revenue - - -
Total deferred inflows of resources - - -
8,744,240 61,125 186,375
FUND BALANCES Nonspendable:
Total Nonspendable - - - Restricted for:
C apital projects 12,043,120 5,711,319 - Total Restricted 12,043,120 5,711,319 -
C ommitted to: C apital projects - - 12,416,077
Total C ommitted - - 12,416,077 Total fund balances 12,043,120 5,711,319 12,416,077
20,787,360$ 5,772,444 12,602,452 Total liabilities, deferred inflows of resources, and fund balances
Total liabilities and deferred inflows of resources
229Financial Section
Capital Projects Funds
Exhibit F concluded
The Penny for
Affordable Housing
Total C apital Projects Funds
ASSETS 53,809,468 256,094,131 Equity in pooled cash and temporary investments
Receivables: - 2,591,531 Accounts
5,370,906 5,370,906 Accrued interest 48,875,310 48,875,310 Loans
- 249,043 Due from intergovernmental units Restricted assets:
- 15,738,889 Equity in pooled cash and temporary investments - 10,999,518 C ash with fiscal agents
108,055,684 339,919,328 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - Total deferred outflows of resources
108,055,684 339,919,328 Total assets and deferred outflows of resources
LIABILITIES AND FUND BALANCES Liabilities:
81,851 12,286,806 Accounts payable and accrued liabilities - 51,706 Accrued salaries and benefits
18,696 5,788,195 C ontract retainages - 2,000,914 Due to component units - 24,639,226 Unearned revenues - 38,543,408 Performance and other deposits
100,547 83,310,255 Total liabilities
DEFERRED INFLOW OF RESOURCES 5,370,906 5,370,906 Unavailable revenue 5,370,906 5,370,906 Total deferred inflows of resources
5,471,453 88,681,161
FUND BALANCES Nonspendable:
- - Total Nonspendable Restricted for:
- 83,364,946 C apital projects - 83,364,946 Total Restricted
C ommitted to: 102,584,231 167,873,221 C apital projects 102,584,231 167,873,221 Total C ommitted 102,584,231 251,238,167 Total fund balances
108,055,684 339,919,328 Total liabilities, deferred inflows of resources, and fund balances
Total liabilities and deferred inflows of resources
230
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
C ontributed Roadway
Improvement Library
C onstruction C ounty
C onstruction
C apital Renewal
C onstruction REVENUES Taxes -$ - - - Intergovernmental - - - 419,949 C harges for services - - 1,128,706 - Developers' contributions 10,738,041 - 100,300 - Revenue from the use of money and property 259,556 - 399,117 - Recovered costs - - 775,620 -
Total revenues 10,997,597 - 2,403,743 419,949 EXPENDITURES C urrent:
General government administration - - 951,574 986,587 Public safety - - - - Public works - - 60,277 - Health and welfare - - 3,936,969 -
C ommunity development 957,296 - 3,575,817 - Parks, recreation, and cultural - 28,512 3,253,665 -
Intergovernmental: C ommunity development - - - - Parks, recreation, and cultural - - 27,345,731 - Education - for Public Schools - - 180,000,000 -
C apital outlay: General government administration - - 1,205,702 7,222,083 Public safety - - 2,026,460 - Public works - - 856,102 - Health and welfare - - 16,258,742 - C ommunity development 2,003,664 - 2,591,700 - Parks, recreation, and cultural - 3,607,818 832,660 -
Debt service: Principal retirement - - 645,000 - Interest and other charges - - 142,642 -
Total expenditures 2,960,960 3,636,330 243,683,041 8,208,670 Excess (Deficiency of) revenues
over (under) expenditures 8,036,637 (3,636,330) (241,279,298) (7,788,721) OTHER FINANCING SOURCES (USES) Transfers in - - 25,719,833 17,597,375 Transfers out (181,732) - (13,327,431) (6,723,312)
- 2,000,000 177,190,000 - Premium on general obligation bonds issued - - 24,549,140 -
Total other financing sources (uses), net (181,732) 2,000,000 214,131,542 10,874,063 Net change in fund balances 7,854,905 (1,636,330) (27,147,756) 3,085,342
Fund balances, July 1, 2020 40,485,749 10,348,940 32,650,918 40,619,520 Fund balances, June 30, 2021 48,340,654$ 8,712,610 5,503,162 43,704,862
General obligation bonds issued
231Financial Section
Capital Projects Funds
Exhibit F-1
Transportation Improvements
Pedestrian Walkway
Improvements
Metro Operations
and C onstruction
REVENUES - - - Taxes - - - Intergovernmental - - - C harges for services - - - Developers' contributions - - - Revenue from the use of money and property
2,437,344 - - Recovered costs 2,437,344 - - Total revenues
EXPENDITURES C urrent:
- - - General government administration - - - Public safety - - - Public works - - - Health and welfare
10,065,329 1,125,928 - C ommunity development - - - Parks, recreation, and cultural
Intergovernmental: - - 82,239,462 C ommunity development - - - Parks, recreation, and cultural - - - Education - for Public Schools
C apital outlay: - - - General government administration - - - Public safety
5,092,069 - - Public works - - - Health and welfare
226,244 1,279,250 - C ommunity development - - - Parks, recreation, and cultural
Debt service: - - - Principal retirement - - - Interest and other charges
15,383,642 2,405,178 82,239,462 Total expenditures Deficiency of revenues
(12,946,298) (2,405,178) (82,239,462) under expenditures OTHER FINANCING SOURCES (USES)
- 4,018,555 44,132,156 Transfers in - - (3,153,437) Transfers out
15,000,000 - 36,000,000 - - 6,000,000 Premium on general obligation bonds issued
15,000,000 4,018,555 82,978,719 Total other financing sources (uses), net 2,053,702 1,613,377 739,257 Net change in fund balances 5,485,212 2,051,512 279,072 Fund balances, July 1, 2020 7,538,914 3,664,889 1,018,329 Fund balances, June 30, 2021
continued
General obligation bonds issued
232
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Public Safety
C onstruction
C ommercial Revitalization
Program
Pro Rata Drainage
C onstruction
Environmental
and Energy Program
REVENUES Taxes -$ - - - Intergovernmental - - - - C harges for services - - - - Developers' contributions 12,458,273 - - - Revenue from the use of money and property 57,375 - - - Recovered costs - - 2,655,358 29,237
Total revenues 12,515,648 - 2,655,358 29,237 EXPENDITURES C urrent:
General government administration - - - 352,620 Public safety 279,029 - - - Public works - - - - Health and welfare - - - -
C ommunity development - - - - Parks, recreation, and cultural - - - -
Intergovernmental: C ommunity development - - - - Parks, recreation, and cultural - - - 1,028,294 Education - for Public Schools - - - -
C apital outlay: General government administration - - - 139,193 Public safety 48,365,229 - - - Public works - - 170,837 3,521,272 Health and welfare - - - - C ommunity development - - - - Parks, recreation, and cultural - - - -
Debt service: Principal retirement - - - - Interest and other charges - - - -
Total expenditures 48,644,258 - 170,837 5,041,379 Excess (Deficiency of) revenues
over (under) expenditures (36,128,610) - 2,484,521 (5,012,142) OTHER FINANCING SOURCES (USES) Transfers in 10,000,000 - - 17,428,219 Transfers out - (750,642) - -
24,000,000 - - - Premium on general obligation bonds issued 6,000,000 - - -
Total other financing sources (uses), net 40,000,000 (750,642) - 17,428,219 Net change in fund balances 3,871,390 (750,642) 2,484,521 12,416,077
Fund balances, July 1, 2020 8,171,730 750,642 3,226,798 - Fund balances, June 30, 2021 12,043,120$ - 5,711,319 12,416,077
General obligation bonds issued
233Financial Section
Capital Projects Funds
Exhibit F-1 concluded
Housing Assistance Program
The Penny for
Affordable Housing
Total C apital Projects Funds
REVENUES - 13,247,000 13,247,000 Taxes - 5,200,000 5,619,949 Intergovernmental - - 1,128,706 C harges for services - - 23,296,614 Developers' contributions - 800,601 1,516,649 Revenue from the use of money and property - - 5,897,559 Recovered costs - 19,247,601 50,706,477 Total revenues
EXPENDITURES C urrent:
- - 2,290,781 General government administration - - 279,029 Public safety - - 60,277 Public works - - 3,936,969 Health and welfare - 1,526,946 17,251,316 C ommunity development - - 3,282,177 Parks, recreation, and cultural
Intergovernmental: - 484,067 82,723,529 C ommunity development - - 28,374,025 Parks, recreation, and cultural - - 180,000,000 Education - for Public Schools
C apital outlay: - - 8,566,978 General government administration - - 50,391,689 Public safety - - 9,640,280 Public works - - 16,258,742 Health and welfare - 883,687 6,984,545 C ommunity development - - 4,440,478 Parks, recreation, and cultural
Debt service: - 4,345,000 4,990,000 Principal retirement - 3,172,813 3,315,455 Interest and other charges - 10,412,513 422,786,270 Total expenditures
Excess (Deficiency of) revenues - 8,835,088 (372,079,793) over (under) expenditures
OTHER FINANCING SOURCES (USES) - 993,137 119,889,275 Transfers in
(5,143,235) - (29,279,789) Transfers out - - 254,190,000 - - 36,549,140 Premium on general obligation bonds issued
(5,143,235) 993,137 381,348,626 Total other financing sources (uses), net (5,143,235) 9,828,225 9,268,833 Net change in fund balances 5,143,235 92,756,006 241,969,334 Fund balances, July 1, 2020
- 102,584,231 251,238,167 Fund balances, June 30, 2021
General obligation bonds issued
234
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
235Financial Section
The Internal Service Funds are used to account for the financing of goods or services provided by a department to another department on a cost reimbursement basis.
Vehicle Services Fund is used to account for the acquisition of certain motor vehicles and the costs associated with the operation thereof by various departments of the reporting entity.
Self-Insurance Fund is used to account for the costs associated with providing coverage to the County for losses related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees and citizens, and natural disasters; with managing claims pertaining thereto; and with operating various loss- prevention, safety, and rehabilitation programs.
Document Services Fund is used to account for the costs associated with providing printing, copying, and micrographic services to various departments of the reporting entity.
Technology Infrastructure Services Fund is used to account for the costs associated with providing data center and network services to County departments through the operation and maintenance of a mainframe computer, data communications equipment, and radio networks.
Health Benefits Fund is used to account for the provision of a comprehensive health insurance benefits program to County employees.
Internal Service Funds
236
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Internal Service Funds Combining Statement of Net Position June 30, 2021
Vehicle Services
Self- Insurance
Document Services
ASSETS C urrent assets:
Equity in pooled cash and temporary investments 64,852,231$ 104,513,018 1,598,097 Accounts receivable 280 - 1,574 Due from intergovernmental units 2,352 - - Interfund receivables - - - Inventories of supplies 3,265,136 - -
Total unrestricted current assets 68,119,999 104,513,018 1,599,671 Total current assets 68,119,999 104,513,018 1,599,671
Long-term assets: C apital assets: Non-depreciable/non-amortizable:
Land 1,938,688 - - C onstruction in progress 14,975,236 - - Equipment under construction 3,904,397 - -
Depreciable: Vehicles and equipment 163,067,081 - 5,118,502 Software - - - Buildings and improvements 20,855,984 - - Infrastructure 4,597,790 - - Accumulated depreciation (127,229,972) - (5,024,700) Accumulated amortization - - -
Total capital assets, net 82,109,204 - 93,802
Total assets 150,229,203 104,513,018 1,693,473
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - -
LIABILITIES C urrent liabilities:
Accounts payable and accrued liabilities 2,268,516 153,322 315,372 Accrued salaries and benefits 1,622,165 88,590 141,684 C ompensated absences payable 1,093,764 47,808 93,633 Insurance and benefit claims payable - 13,500,000 -
Total current liabilities 4,984,445 13,789,720 550,689 Long-term liabilities:
C ompensated absences payable 1,422,449 93,399 80,356 Insurance and benefit claims payable - 56,496,000 -
Total long-term liabilities 1,422,449 56,589,399 80,356 Total liabilities 6,406,894 70,379,119 631,045
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - -
NET POSITION Net investment in capital assets 82,109,204 - 93,802 Unrestricted 61,713,105 34,133,899 968,626 Net position 143,822,309$ 34,133,899 1,062,428
237Financial Section
Internal Service Funds
Exhibit G
Technology Infrastructure
Services Health Benefits
Total Internal Service Funds
ASSETS C urrent assets:
14,876,529 86,115,708 271,955,583 Equity in pooled cash and temporary investments 2,808 - 4,662 Accounts receivable
- - 2,352 Due from intergovernmental units - 1,577,996 1,577,996 Interfund receivables - - 3,265,136 Inventories of supplies
14,879,337 87,693,704 276,805,729 Total unrestricted current assets 14,879,337 87,693,704 276,805,729 Total current assets
Long-term assets: C apital assets: Non-depreciable/non-amortizable:
- - 1,938,688 Land - - 14,975,236 C onstruction in progress
61,293 - 3,965,690 Equipment under construction Depreciable:
35,007,208 55,909 203,248,700 Equipment 2,200,587 - 2,200,587 Software 1,086,205 273,548 22,215,737 Buildings and improvements
- - 4,597,790 Infrastructure (26,934,979) (104,977) (159,294,628) Accumulated depreciation (1,711,319) - (1,711,319) Accumulated amortization 9,708,995 224,480 92,136,481 Total capital assets, net
24,588,332 87,918,184 368,942,210 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - - Total deferred outflows of resources
LIABILITIES C urrent liabilities:
2,169,321 4,322,533 9,229,064 Accounts payable and accrued liabilities 532,464 27,694 2,412,597 Accrued salaries and benefits 444,518 - 1,679,723 C ompensated absences payable
- 12,791,000 26,291,000 Insurance and benefit claims payable 3,146,303 17,141,227 39,612,384 Total current liabilities
Long-term liabilities: 596,596 - 2,192,800 C ompensated absences payable
- - 56,496,000 Insurance and benefit claims payable 596,596 - 58,688,800 Total long-term liabilities
3,742,899 17,141,227 98,301,184 Total liabilities
DEFERRED INFLOWS OF RESOURCES - - - Total deferred inflows of resources
NET POSITION 9,708,995 224,480 92,136,481 Net investment in capital assets
11,136,438 70,552,477 178,504,545 Unrestricted 20,845,433 70,776,957 270,641,026 Net position
238
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position For the fiscal year ended June 30, 2021
Vehicle Services
Self- Insurance
Document Services
OPERATING REVENUES: C harges for services 66,942,434$ 24,953,799 5,257,657 Recovered costs 86,554 - -
Total operating revenues 67,028,988 24,953,799 5,257,657 OPERATING EXPENSES:
Personnel services 22,783,148 1,354,325 2,050,373 Materials and supplies 36,285 191,051 2,901,799 Equipment operation and maintenance 21,014,714 173,556 1,330,463 Risk financing and benefit payments - 22,452,267 - Depreciation 13,712,686 - 1,067,006 Professional consultant and contractual services 4,092,808 201,824 1,925,359 Other 44,097 64,121 41,046
Total operating expenses 61,683,738 24,437,144 9,316,046 Operating income (loss) 5,345,250 516,655 (4,058,389)
NONOPERATING REVENUES (EXPENSES): Interest revenue - 278,278 - Interest expense - - (60,241) Gain (loss) on disposal of capital assets 507,442 - - Gain on early termination of capital lease - - -
Total nonoperating revenues (expenses), net 507,442 278,278 (60,241) Income (loss) before transfers and contributions 5,852,692 794,933 (4,118,630)
C apital contributions - - - Transfers in - 6,756,000 3,965,515
C hange in net position 5,852,692 7,550,933 (153,115) Net position, July 1, 2020 137,969,617 26,582,966 1,215,543 Net position, June 30, 2021 143,822,309$ 34,133,899 1,062,428
239Financial Section
Internal Service Funds
Exhibit G-1
Technology Infrastructure
Services Health Benefits
Total Internal Service Funds
OPERATING REVENUES: 42,477,299 169,472,260 309,103,449 C harges for services
- - 86,554 Recovered costs 42,477,299 169,472,260 309,190,003 Total operating revenues
OPERATING EXPENSES: 7,669,131 - 33,856,977 Personnel services
180,454 16,041 3,325,630 Materials and supplies 5,038,894 41,496 27,599,123 Equipment operation and maintenance
- 166,616,240 189,068,507 Risk financing and benefit payments 2,938,664 17,091 17,735,447 Depreciation
27,010,185 35,843 33,266,019 Professional consultant and contractual services 95,005 11,758,721 12,002,990 Other
42,932,333 178,485,432 316,854,693 Total operating expenses (455,034) (9,013,172) (7,664,690) Operating income (loss)
NONOPERATING REVENUES (EXPENSES): - 240,698 518,976 Interest revenue - - (60,241) Interest expense
(33,757) - 473,685 Gain (loss) on disposal of capital assets- - - Gain on early termination of capital lease (33,757) 240,698 932,420 Total nonoperating revenues (expenses), net
(488,791) (8,772,474) (6,732,270) Income (loss) before transfers and contributions 51,270 - 51,270 C apital contributions
4,772,234 - 15,493,749 Transfers in 4,334,713 (8,772,474) 8,812,749 C hange in net position
16,510,720 79,549,431 261,828,277 Net position, July 1, 2020 20,845,433 70,776,957 270,641,026 Net position, June 30, 2021
240
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Internal Service Funds Combining Statement of Cash Flows For the fiscal year ended June 30, 2021
Vehicle Services
Self- Insurance
Document Services
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided 67,047,914$ 24,953,799 5,256,709 Payments to suppliers and contractors (21,132,391) - (6,199,515) Payments to employees (22,628,791) (1,314,240) (2,031,041) C laims and benefits paid - (20,764,864) - Payments for interfund services used (3,726,424) (630,552) -
Net cash provided by (used in) operating activities 19,560,308 2,244,143 (2,973,847) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers from other funds - 6,756,000 3,965,515 Net cash provided by noncapital financing activities - 6,756,000 3,965,515
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets 530,680 - - Purchase of capital assets (13,879,971) - - Principal payments on obligations under capital leases - - (1,199,341) Interest payments on obligations under capital leases - - (60,241)
Net cash used in capital and related financing activities (13,349,291) - (1,259,582) CASH FLOWS FROM INVESTING ACTIVITIES
Interest received - 278,278 - Net cash provided by investing activities - 278,278 -
Net increase (decrease) in cash and cash equivalents 6,211,017 9,278,421 (267,914) C ash and cash equivalents, July 1, 2020 58,641,214 95,234,597 1,866,011 C ash and cash equivalents, June 30, 2021 64,852,231$ 104,513,018 1,598,097
Operating income (loss) 5,345,250$ 516,655 (4,058,389)
by operating activities: Depreciation and amortization 13,712,686 - 1,067,006
Decrease (Increase) in accounts receivable 21,093 - (1,574) Decrease (Increase) in intergovernmental receivables (2,167) - 626 Decrease in interfund receivables - - - Decrease in inventories of supplies 277,328 - - Increase (Decrease) in accounts payable and accrued liabilities 51,761 1,687,403 (848) Increase (Decrease) in accrued salaries and benefits 154,357 40,085 19,332 Increase in due to intergovernmental units - - -
Total adjustments to operating income 14,215,058 1,727,488 1,084,542 Net cash provided by (used in) operating activities 19,560,308$ 2,244,143 (2,973,847)
Gain (Loss) on disposal of capital assets 507,442$ - -
Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:
Adjustments to reconcile operating income (loss)
Noncash capital and financing activities:
C hange in assets and liabilities:
241Financial Section
Internal Service Funds
Exhibit G-2
Technology Infrastructure
Services Health Benefits
Total Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES 42,474,491 169,485,596 309,218,509 Receipts from interfund services provided
(31,859,245) (4,647,776) (63,839,654) Payments to suppliers and contractors (7,782,337) - (33,755,682) Payments to employees
- (175,517,647) (196,282,511) C laims and benefits paid - - (4,356,976) Payments for interfund services used
2,832,909 (10,679,827) 10,983,686 Net cash provided by (used in) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
4,772,234 - 15,493,749 Transfers from other funds 4,772,234 - 15,493,749 Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES - - 530,680 Proceeds from sale of capital assets
(3,881,424) (6,783) (17,768,178) Purchase of capital assets - - (1,199,341) Principal payments on obligations under capital leases - - (60,241) Interest payments on obligations under capital leases
(3,881,424) (6,783) (18,497,080) Net cash used in capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES
- 240,698 518,976 Interest received - 240,698 518,976 Net cash provided by investing activities
3,723,719 (10,445,912) 8,499,331 Net increase (decrease) in cash and cash equivalents 11,152,810 96,561,620 263,456,252 C ash and cash equivalents, July 1, 2020 14,876,529 86,115,708 271,955,583 C ash and cash equivalents, June 30, 2021
(455,034) (9,013,172) (7,664,690) Operating income (loss)
by operating activities: 2,938,664 17,091 17,735,447 Depreciation and amortization
(2,808) - 16,711 Decrease (Increase) in accounts receivable - - (1,541) Decrease (Increase) in intergovernmental receivables - 13,336 13,336 Decrease in interfund receivables - - 277,328 Decrease in inventories of supplies
465,293 (1,702,188) 500,694 Increase (Decrease) in accounts payable and accrued liabilities (113,206) 5,106 105,674 Increase (Decrease) in accrued salaries and benefits
- - 727 Increase in due to intergovernmental units 3,287,943 (1,666,655) 18,648,376 Total adjustments to operating income 2,832,909 (10,679,827) 10,983,686 Net cash provided by (used in) operating activities
(33,757) - 473,685 Gain (Loss) on disposal of capital assets Noncash capital and financing activities:
C hange in assets and liabilities:
Reconciliation of operating income (loss) to net cash provided by (used in) operating activities:
Adjustments to reconcile operating income (loss)
242
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
The Fiduciary Funds are used to account for assets held by the County in a trustee or custodial capacity and include the pension trust funds and custodial funds. Pension trust funds account for assets held by the County under terms of a formal trust agreement. Custodial funds are maintained to account for funds received and disbursed by the County on behalf of various organizations.
Pension Trust Funds are used to account for employee retirement systems that provide pension benefits for various classes of County employees. The County maintains three employee retirement funds: the Uniformed Retirement Fund, the Employees’ Retirement Fund, and the Police Officers Retirement Fund.
OPEB Trust Fund is used to account for the costs of other post-employment benefits, including health care, life insurance, and other non-pension benefits offered to retirees. The establishment of a trust fund allows the County to capture long-term investment returns, make progress towards reducing the unfunded actuarial liability, and pre-fund the cost of post employment health care and other non-pension benefits.
Sanitary Reimbursement Fund is a custodial fund used to account for the collection of contributions from beneficiary developers toward the construction of major sewer lines and the reimbursement of these funds to the primary developers.
Special Welfare Fund is a custodial fund used to account for regular assistance payments to recipients in the Aid to Dependent Children Program. These funds include money from the State, individuals, organizations, and churches.
State Taxes Fund is a custodial fund used to account for the collection of sheriff’s fees and the subsequent remittances to the Commonwealth of Virginia.
Route 28 Fund is a custodial fund used to account for the collection of assessments on certain industrial and commercial properties for transportation improvements to Route 28 and the subsequent remittances of these funds to the Commonwealth of Virginia.
243Financial Section
Fiduciary Funds
Lake Barcroft Fund is a custodial fund used to account for the collection of special assessments from certain property owners for the maintenance of Lake Barcroft and the subsequent remittances of these funds to the Commonwealth of Virginia.
Friends of Library Fund is a custodial fund used to account for the collection and reimbursement of Friends of Library’s portion of book sale proceeds.
Toll Road Violations Fund is a custodial fund used to account for the collection of toll road violation fees and the Hot Lane violation fees, and the subsequent remittances to Metropolitan Washington Airports Authority and Transurban, respectively. Police Evidence Fund is a custodial fund used to account for the collection and distribution of seized assets.
244
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Trust Funds Combining Statement of Fiduciary Net Position June 30, 2021
Uniformed Retirement
Employees' Retirement
Police Officers Retirement
2,151,890$ 7,304,747 1,912,618 19,283,770 130,882,230 13,523,487
C ontributions receivable 5,270,870 13,805,422 3,993,883 3,103,469 10,374,834 2,621,930 2,078,729 152,889,828 3,607,754
Buildings and improvements 3,949 18,430 3,949 Vehicles and Equipment 4,711 21,987 4,712
U.S. Government securities 65,457,530 214,000,466 78,964,276 Asset-backed securities 105,861,291 117,362,797 43,380,369 C orporate and other bonds 113,880,957 407,979,746 82,378,203 C ommon and preferred stock 387,526,678 1,130,853,306 208,305,541 Short-term investments 182,195,144 205,607,282 65,667,361 Investment in pooled funds 1,308,801,657 3,041,360,995 1,328,431,453
Total assets 2,195,620,645 5,432,462,070 1,832,795,536
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - -
5,226,984 11,984,068 4,640,126 6,004,679 142,991,611 6,362,722
19,283,770 130,882,230 13,523,487 28,036 89,052 21,620
Long-term liabilities: C ompensated absences, long-term 51,621 282,683 58,038
Total liabilities 30,595,090 286,229,644 24,605,993
DEFERRED INFLOW OF RESOURCES Total deferred inflows of resources - - -
- - - 2,165,025,555 5,146,232,426 1,808,189,543
Total Net position 2,165,025,555$ 5,146,232,426 1,808,189,543
Investments:
ASSETS
Receivable from sale of pension investments Accrued interest and dividends receivable
C ash collateral for securities lending Equity in pooled cash and temporary investments
LIABILITIES Accounts payable and accrued liabilities Payable for purchase of pension investments
Net position restricted for pension benefits
lending agreements
Net position restricted for OPEB benefits
Liabilities for collateral received under securities
NET POSITION
C ompensated absences, short term
245Financial Section
Fiduciary Funds
Exhibit H
Total Pension Trust
Funds OPEB
Trust Fund Total
Trust Funds
11,369,255 2,848,791 14,218,046 163,689,487 - 163,689,487 23,070,175 25,034 23,095,209 C ontributions receivable 16,100,233 17,584 16,117,817
158,576,311 - 158,576,311 26,328 - 26,328 Buildings and improvements 31,410 - 31,410 Equipment
358,422,272 - 358,422,272 U.S. Government securities 266,604,457 - 266,604,457 Asset-backed securities 604,238,906 - 604,238,906 C orporate and other bonds
1,726,685,525 - 1,726,685,525 C ommon and preferred stock 453,469,787 - 453,469,787 Short-term investments
5,678,594,105 421,005,166 6,099,599,271 Investment in pooled funds 9,460,878,251 423,896,575 9,884,774,826 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - - Total deferred outflows of resources
21,851,178 207 21,851,385 155,359,012 - 155,359,012
163,689,487 - 163,689,487 138,708 - 138,708
Long-term liabilities: 392,342 - 392,342 C ompensated absences, long-term
341,430,727 207 341,430,934
DEFERRED INFLOW OF RESOURCES - - - Total deferred inflows of resources
- 423,896,368 423,896,368 9,119,447,524 - 9,119,447,524 9,119,447,524 423,896,368 9,543,343,892 Total Net position
Investments:
lending agreements
Total liabilities
NET POSITION Net position restricted for OPEB benefits
LIABILITIES Accounts payable and accrued liabilities Payable for purchase of pension investments
ASSETS Equity in pooled cash and temporary investments C ash collateral for securities lending
Accrued interest and dividends receivable Receivable from sale of pension investments
Net position restricted for pension benefits
Liabilities for collateral received under securities
C ompensated absences, short term
246
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Trust Funds Combining Statement of Changes in Fiduciary Net Position For the fiscal year ended June 30, 2021
Uniformed Retirement
Employees' Retirement
Police Officers Retirement
69,464,042$ 227,846,281 50,348,130 12,980,620 39,914,839 14,687,984
Other - - - 82,444,662 267,761,120 65,036,114
From investment activities: Net appreciation in fair value of investments 440,845,024 1,088,170,955 439,194,912
Interest 9,898,772 41,753,907 9,861,961 Dividends 12,835,266 18,436,766 3,421,776
Total income from investment activities 463,579,062 1,148,361,628 452,478,649 Less investment activities expenses:
Management fees 21,991,473 51,435,671 18,946,038 Other 1,407,498 1,944,271 765,781
Total investment activities expenses 23,398,971 53,379,942 19,711,819 Net income from investment activities 440,180,091 1,094,981,686 432,766,830 From securities lending activities:
Securities lending income 250,822 1,811,472 103,641 Less securities lending expenses:
Management fees 83,680 533,475 35,989 Total securities lending activities expenses 83,680 533,475 35,989
Net income from securities lending activities 167,142 1,277,997 67,652 Net investment income 440,347,233 1,096,259,683 432,834,482
Total additions 522,791,895 1,364,020,803 497,870,596 DEDUCTIONS
118,290,494 353,630,536 88,691,929 899,880 3,701,609 888,427 678,336 2,519,441 665,628
Total deductions 119,868,710 359,851,586 90,245,984 402,923,185 1,004,169,217 407,624,612
1,762,102,370 4,142,063,209 1,400,564,931 2,165,025,555$ 5,146,232,426 1,808,189,543
ADDITIONS C ontributions:
Employer
Net increase (decrease) in fiduciary net position Net position, July 1, 2020 Net position, June 30, 2021
Plan members
Total contributions Investment income:
Benefits payments Refunds of contributions Administrative expenses
247Financial Section
Fiduciary Funds
Exhibit H-1
Total Pension Trust
Funds OPEB
Trust Fund Total
Trust Funds
347,658,453 17,974,135 365,632,588 67,583,443 - 67,583,443
- 97,913 97,913 Other 415,241,896 18,072,048 433,313,944
From investment activities:
1,968,210,891 98,714,550 2,066,925,441 61,514,640 5,872 61,520,512 Interest 34,693,808 - 34,693,808 Dividends
2,064,419,339 98,720,422 2,163,139,761 Total income from investment activities Less investment activities expenses:
92,373,182 277,002 92,650,184 Management fees 4,117,550 500 4,118,050 Other
96,490,732 277,502 96,768,234 Total investment activities expenses 1,967,928,607 98,442,920 2,066,371,527 Net income from investment activities
From securities lending activities: 2,165,935 - 2,165,935 Securities lending income
Less securities lending expenses: 653,144 - 653,144 Management fees 653,144 - 653,144 Total securities lending activities expenses
1,512,791 - 1,512,791 Net income from securities lending activities 1,969,441,398 98,442,920 2,067,884,318 Net investment income 2,384,683,294 116,514,968 2,501,198,262 Total additions
DEDUCTIONS 560,612,959 23,252,169 583,865,128
5,489,916 - 5,489,916 3,863,405 130,788 3,994,193
569,966,280 23,382,957 593,349,237 Total deductions 1,814,717,014 93,132,011 1,907,849,025 7,304,730,510 330,764,357 7,635,494,867 9,119,447,524 423,896,368 9,543,343,892
Administrative expenses
Net increase (decrease) in fiduciary net position Net position, July 1, 2020 Net position, June 30, 2021
Total contributions Investment income:
Benefits payments Refunds of contributions
Net appreciation in fair value of investments
ADDITIONS C ontributions:
Employer Plan members
248
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Custodial Funds Combining Statement of Fiduciary Net Position June 30, 2021
Sanitary Reimbursement
Special Welfare State Taxes Route 28
1,726,413$ 609,486 279,187 1,028 - - - 170,704
1,726,413 609,486 279,187 171,732
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - -
- - - 103 Due to intergovernmental units - - 279,187 170,704
790,526 - - -
790,526 - 279,187 170,807
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - - -
935,887$ 609,486 - 925
Total assets
LIABILITIES
ASSETS Equity in pooled cash and temporary investments Accounts receivable
NET POSITION
Total liabilities
Accounts payable and accrued liabilities
Net position restricted for individuals, organizations, and other governments
Performance and other deposits
249Financial Section
Fiduciary Funds
Exhibit H-2
Lake Barcroft Friends of
Library
Toll Road Violations Penalties
Police Evidence
Fund
Total C ustodial
Funds
- 4,248 838 389,829 3,011,029 1,102 - - - 171,806 1,102 4,248 838 389,829 3,182,835
DEFERRED OUTFLOWS OF RESOURCES - - - - - Total deferred outflows of resources
- - - - 103 1,102 - - - 450,993 Due to intergovernmental units
- - - - 790,526
1,102 - - - 1,241,622
DEFERRED INFLOWS OF RESOURCES - - - - - Total deferred inflows of resources
- 4,248 838 389,829 1,941,213
Total liabilities
NET POSITION Net position restricted for individuals, organizations, and other governments
Total assets
LIABILITIES Accounts payable and accrued liabilities
Performance and other deposits
ASSETS Equity in pooled cash and temporary investments Accounts receivable
250
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Custodial Funds Combining Statement of Changes in Fiduciary Net Position For the fiscal year ended June 30, 2021
Sanitary Reimbursement
Special Welfare State Taxes Route 28
Investment income: From investment activities:
Interest 4,629$ 1,567 - 2,839 Total income from investment activities 4,629 1,567 - 2,839
Less investment activities expenses: Management fees 298 101 - 189
Total investment activities expenses 298 101 - 189 Net income from investment activities 4,331 1,466 - 2,650
C ollections: Taxes and fees for other governments - - 4,449,179 11,803,959 Intergovernmental for individuals - 446,424 - - Penalty for other governments and organizations - - - - Other for organizations and individuals - 45,253 - -
Total collections - 491,677 4,449,179 11,803,959 Total additions 4,331 493,143 4,449,179 11,806,609
DEDUCTIONS Administrative expenses - - 72,765 - Payments:
Taxes and fees to other governments - - 4,652,142 11,805,684 Intergovernmental collections to individuals - 530,056 - - Penalties to other governments and organizations - - - - Other collections to organizations and individuals - 4,575 - -
Total payments - 534,631 4,652,142 11,805,684 Total deductions - 534,631 4,724,907 11,805,684
Net increase (decrease) in fiduciary net position 4,331 (41,488) (275,728) 925 Net position, July 1, 2020 - - - - Prior period adjustment 931,556 650,974 275,728 - Net position, June 30, 2021 935,887$ 609,486 - 925
ADDITIONS
251Financial Section
Exhibit H-3
Fiduciary Funds
Lake Barcroft Friends of
Library
Toll Road Violations Penalties
Police Evidence Fund
Total C ustodial
Funds
Investment income: From investment activities:
- - - - 9,035 Interest - - - - 9,035 Total income from investment activities
Less investment activities expenses: - - - - 588 Management fees - - - - 588 Total investment activities expenses - - - - 8,447 Net income from investment activities
C ollections: 1,267,805 - - - 17,520,943 Taxes and fees for other governments
- - - - 446,424 Intergovernmental for individuals - - 927,395 - 927,395 Penalty for other governments and organizations - 31,314 - 1,196,701 1,273,268 Other for organizations and individuals
1,267,805 31,314 927,395 1,196,701 20,168,030 Total collections 1,267,805 31,314 927,395 1,196,701 20,176,477 Total additions
DEDUCTIONS - - - - 72,765 Administrative expenses
Payments: 1,267,805 - - - 17,725,631 Taxes and fees to other governments
- - - - 530,056 Intergovernmental collections to individuals - - 927,489 - 927,489 Penalties to other governments and organizations - 27,153 - 806,872 838,600 Other collections to organizations and individuals
1,267,805 27,153 927,489 806,872 20,021,776 Total payments 1,267,805 27,153 927,489 806,872 20,094,541 Total deductions
- 4,161 (94) 389,829 81,936 Net increase (decrease) in fiduciary net position - - - - - Net position, July 1, 2020 - 87 932 - 1,859,277 Prior period adjustment - 4,248 838 389,829 1,941,213 Net position, June 30, 2021
ADDITIONS
252
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Fairfax County Public Schools (Public Schools) is responsible for elementary and secondary education within the County. The School Board is elected by County voters. Public Schools is fiscally dependent on the County in that its operations are funded primarily by payments from the County’s General Fund and the County issues general obligation debt to fund Public Schools capital projects.
General Fund is used to account for expenditures to operate, maintain, and support Public Schools’ programs. Its primary sources of revenues are Federal and State aid and payments from the County’s General Fund.
Capital Projects Fund is used to account for the renovation, expansion, and new construction of school facilities as authorized by voter referendum and for other capital expenditures. Projects are funded primarily by proceeds from the sale of County general obligation bonds.
Food and Nutrition Services Fund is a special revenue fund used to account for the provision of student breakfasts, snacks, and lunches. Primary sources of revenues are Federal and State aid and receipts from food sales.
Grants and Self-Supporting Programs Fund is a special revenue fund used to account for federal, state, non-profit, and private industry grants that support the Instructional Services, Student Services, Special Education, and Information Technology programs.
Adult and Community Education Fund is a special revenue fund used to account for programs pertaining to basic skills education, high school completion, English as a second language, apprenticeship and occupation skills instruction, family literacy, driver education, SAT preparation, and business contracts.
Health Benefits Trust Fund is an internal service fund used to account for the provision of a comprehensive health insurance benefits program to Public Schools’ employees.
Insurance Fund is an internal service fund that is used to account for the Public Schools’ casualty liability obligations, including the provision of workers’ compensation benefits in the form of medical and disability payments to Public Schools’ employees who sustain occupational injuries.
253Financial Section
Fairfax County Public Schools
Pension Trust Fund is used to account for the Educational Employees’ Supplementary Retirement System, which provides pension benefits for Public Schools’ employees.
OPEB Trust Fund is used to account for a single-employer other postemployment defined benefit plan.
254
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Fairfax County Public Schools Balance Sheet - Governmental Funds June 30, 2021 Nonmajor Governmental
Special Revenue
General Fund
Food and Nutrition Services
Grants and Self-Supporting
Programs
317,414,736$ 280,741 5,648,228 18,294,817 90,475 - - -
570,529 - 158,269 28,955 - - 11,332 -
48,153,582 - 4,151,021 15,488,327 121,630 - 114,212 - 300,000 - - -
- - 1,399,420 - 54,167 - - -
Restricted assets - investments - 121,248,325 - - Total assets 366,705,119 121,529,066 11,482,482 33,812,099
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - -
Total assets and deferred outflows of resources 366,705,119$ 121,529,066 11,482,482 33,812,099
14,053,724$ 21,758,486 430,033 75,724 Accrued salaries and benefits 91,642,809 13,482 1,673,444 70,499
- 15,037,923 - - - - - -
Due to intergovernmental units 1,917,045 - - - Due to component unit - Primary Government - - - 196,515
37,292 - 3,151,617 1,962,216 - 17,116,723 - -
Total liabilities 107,650,870 53,926,614 5,255,094 2,304,954
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - - -
Total liabilities and deferred inflows of resources 107,650,870 53,926,614 5,255,094 2,304,954
Nonspendable 54,167 - 1,399,420 - Restricted - 67,602,452 4,827,968 31,507,145 C ommitted 39,930,286 - - - Assigned 215,665,132 - - -
3,404,664 - - - Total fund balances 259,054,249 67,602,452 6,227,388 31,507,145
366,705,119$ 121,529,066 11,482,482 33,812,099
Reconciliation of the Balance Sheet to the Statement of Net Position
Fund balances - Total governmental funds 363,833,358$
Amounts reported for governmental activities in the Statement of Net Position are different because: C apital assets used in governmental fund activities are not financial resources and, therefore,
are not reported in the funds. The cost of the assets is $5,159,112,928 and accumulated depreciation/amortization is $2,474,902,989. 2,684,209,939
OPEB liabilities are not due and payable in the current period and, therefore, are not reported in governmental funds. The deferred outflow related to OPEB is $117,326,195, and the net OPEB liability is $387,461,319. The deferred inflow related to OPEB liability is $136,391,349. (406,526,473)
Intangible assets used in governmental fund activities are not financial resources and, therefore, are not reported in the funds. The cost of the assets is $14,037,906 and accumulated amortization is $9,073,162. 4,964,744
Internal service funds are used by management to provide certain goods and services to governmental funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position. 126,445,706
C ompensated absences and accrued interests on long-term debt related to governmental fund activities are not due and payable in the current periods, and therefore, are not reported in the funds. (38,742,140)
C apital leases are not due and payable in the current periods and, therefore, are not reported in the funds. (109,792,305)
Accrued interest on long-term debt (980,521)
Accrued rent (4,154,666)
Revisions of capital lease agreement resulting in a reduction of capital lease obligation are reported as deferred inflows in the Statement of Net Position. (3,044,188)
Pension liabilities are not due and payable in the current period and, therefore, are not reported in governmental funds. The deferred outflow related to pensions is $1,037,364,843, and the net pension liability is $4,115,292,995. The deferred inflow related to pension liability is $193,140,228. (3,271,068,381)
Net position of governmental activities (654,854,927)$
Inventories of supplies Prepaid and other assets
Due from intergovernmental units
Accounts
ASSETS Equity in pooled cash and temporary investments C ash with fiscal agents Receivables:
Accrued interest
Due from Primary Government Interfund receivables
Unearned revenues
C ontract retainages Interfund payables
LIABILITIES AND FUND BALANCES Liabilities:
Accounts payable and accrued liabilities
Total liabilities, deferred inflows of resources, and fund balances
Unassigned
Performance and other deposits
FUND BALANCES
C apital Projects
Fund
255Financial Section
Fairfax County Public Schools
Exhibit I
Funds Funds
Adult and C ommunity Education
Total Governmental
Funds
87,777 341,726,299 - 90,475
4,031 761,784 1,206 12,538
779,775 68,572,705 - 235,842 - 300,000 - 1,399,420
34,739 88,906 - 121,248,325 Restricted assets - investments
907,528 534,436,294
DEFERRED OUTFLOWS OF RESOURCES - - Total deferred outflows of resources
907,528 534,436,294 Total assets and deferred outflows of resources
206,561 36,524,528 514,474 93,914,708 Accrued salaries and benefits
- 15,037,923 300,000 300,000
- 1,917,045 196,515
444,369 5,595,494 - 17,116,723
1,465,404 170,602,936 Total liabilities
DEFERRED INFLOWS OF RESOURCES - - Total deferred inflows of resources
1,465,404 170,602,936 Total liabilities and deferred inflows of resources
34,739 1,488,326 Nonspendable - 103,937,565 Restricted - 39,930,286 C ommitted - 215,665,132 Assigned
(592,615) 2,812,049 (557,876) 363,833,358 Total fund balances
907,528 534,436,294
Accounts
ASSETS Equity in pooled cash and temporary investments
Total liabilities, deferred inflows of resources, and fund balances
LIABILITIES AND FUND BALANCES
C ash with fiscal agents Receivables:
Liabilities: Accounts payable and accrued liabilities
C ontract retainages
Interfund receivables
Due to intergovernmental units
Inventories of supplies Prepaid and other assets
Total assets
Accrued interest Due from intergovernmental units Due from Primary Government
Unassigned
Interfund payables
Unearned revenues Performance and other deposits
FUND BALANCES
Due to component unit - Primary Government
256
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Fairfax County Public Schools Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds For the fiscal year ended June 30, 2021
Nonmajor Special Revenue
General Fund
Food and Nutrition Services
3,019,343,647$ 194,286,862 54,579,493 9,786,748 - 1,327,645 1,328,493 - 8,811
47,656,514 - - 16,534,240 1,584,801 1,351,916
3,094,649,642 195,871,663 57,267,865
Education 2,918,381,277 16,884,770 67,173,607 62,858,918 144,171,701 25,187
26,913,526 - 16,715 3,392,510 - 3,942
3,011,546,231 161,056,471 67,219,451 Excess (deficiency) of revenues over
(under) expenditures 83,103,411 34,815,192 (9,951,586)
- 13,078,444 9,648,031 (44,299,257) - - 52,794,524 - 25,187 8,495,267 13,078,444 9,673,218
91,598,678 47,893,636 (278,368) 144,487,946 19,708,816 6,569,746 22,967,625 - -
- - (63,990) 259,054,249$ 67,602,452 6,227,388
Net change in fund balances Fund balances, July 1, 2020
Decrease in reserve for inventories of supplies Fund balances, June 30, 2021
Prior period adjustments
Total expenditures
C apital leases and installment purchases Total other financing sources (uses), net
OTHER FINANCING SOURCES (USES) Transfers in Transfers out
Debt service: Principal retirement Interest and other charges
EXPENDITURES C urrent:
Other Total revenues
C apital outlay
C apital Projects
Fund REVENUES
Revenue from the use of money and property Recovered costs
Intergovernmental C harges for services
257Financial Section
Fairfax County Public Schools
Exhibit I-1
Governmental Funds Special Revenue Funds
Grants and Self-Supporting
Programs
Adult and C ommunity Education
Total Governmental
Funds
46,862,198 1,910,786 3,316,982,986 2,089,899 2,375,948 15,580,240
41,705 12,251 1,391,260 - - 47,656,514
1,035,648 1,049 20,507,654 50,029,450 4,300,034 3,402,118,654
62,976,443 5,832,485 3,071,248,582 Education 25,312 11,273 207,092,391
3,024 2,586 26,935,851 896 258 3,397,606
63,005,675 5,846,602 3,308,674,430 Excess (deficiency) of revenues over
(12,976,225) (1,546,568) 93,444,224 (under) expenditures
20,371,245 1,201,537 44,299,257 - - (44,299,257)
16,313 11,273 52,847,297 20,387,558 1,212,810 52,847,297 7,411,333 (333,758) 146,291,521
24,095,812 (224,118) 194,638,202 - - 22,967,625 - - (63,990)
31,507,145 (557,876) 363,833,358 continued
Fund balances, July 1, 2020
Decrease in reserve for inventories of supplies Fund balances, June 30, 2021
Prior period adjustments
Transfers out C apital leases and installment purchases
Other Total revenues
EXPENDITURES C urrent:
C harges for services Revenue from the use of money and property
REVENUES Intergovernmental
Total other financing sources (uses), net
Recovered costs
Net change in fund balances
C apital outlay
Total expenditures
OTHER FINANCING SOURCES (USES) Transfers in
Debt service: Principal retirement Interest and other charges
258
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit I-1 concludedFairfax County Public Schools
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Net change in fund balances - Total governmental funds 146,291,521$
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. This is the amount by which capital outlays exceed depreciation/amortization expense in the current period:
C apital outlay 207,092,391$ Less depreciation/amortization expense (174,381,216) 32,711,175
Donations of capital assets increase net position in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. 2,340,137
Losses on the disposition of capital assets are reported in the Statement of Activities. However, in the governmental funds, only the proceeds from sales are reported. The difference is the net depreciated value of the disposed capital assets. (297,363)
C apital lease obligation is reported as expenditure in governmental funds when they are due. In the government-wide statements, the effects of deferred inflows relating to capital lease obligation reductions is amortized over the life of each lease and expensed. 229,750
Principal payments on capital leases and installment purchases are reported as expenditures in governmental funds. However, the principal payments reduce the liabilities in the Statement of Net Position and do not result in an expense in the Statement of Activities. 26,935,851
Under the modified accrual basis of accounting used in the governmental funds, expenditures for compensated absences are not recognized until they mature. In the Statement of Activities, however, they are reported as expenses and liabilities as they accrue. (1,287,748)
Internal service funds are used by management to provide certain goods and services to governmental funds. The change in net position of these funds is reported within governmental activities in the Statement of Activities. 21,671,492
Interest on capital leases and installment purchases is reported as expenditures in the governmental funds when it is due. However, in the Statement of Activities, interest is expensed as it accrues. This amount represents the net change in accrued interest on long-term debt. (431,203)
Proceeds from the issuance of long-term debt are reported as other financing sources in the governmental funds, increasing fund balance. In the government-wide statements, new debt increases long-term liabilities in the Statement of Net Position and does not affect the Statement of Activities. This amount represents principal amounts of new capital leases and and installment purchases. (52,847,297)
Rent abatement charges reduce deferred rent in government-wide statements, but do not use current resources so are not reported in governmental funds. 67,647
Inventory changes impact net position in government-wide statements, but are recorded as expenditures when purchase in governmental fund statements. (63,990)
C ontributions for pension benefits are reported as expenditure in governmental funds when they are due. In the government-wide statements, the effects of net pensions liability, deferred outflows and inflows relating to pension accounting are expensed. (127,008,084)
C ontributions for OPEB benefits are reported as expenditure in governmental funds when they are due. In the government-wide statements, the effects of net OPEB liability, deferred outflows and inflows relating to OPEB accounting are expensed. 32,994,465
C hange in net position of governmental activities 81,306,353$
259Financial Section
Fairfax County Public Schools
Exhibit I-2County of Fairfax, Virginia Fairfax County Public Schools Budgetary Comparison Schedule - General Fund (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES
839,444,663$ 874,130,216 875,146,436 1,016,220 14,768,297 14,768,297 9,786,748 (4,981,549) 3,686,259 3,686,259 1,328,493 (2,357,766)
49,573,557 49,573,557 47,656,514 (1,917,043) 8,996,134 8,996,134 3,914,342 (5,081,792)
Total revenues 916,468,910 951,154,463 937,832,533 (13,321,930) EXPENDITURES Education 3,057,621,695 3,166,442,898 2,942,528,053 223,914,845
Total expenditures 3,057,621,695 3,166,442,898 2,942,528,053 223,914,845 Excess (deficiency) of revenues over
(under) expenditures (2,141,152,785) (2,215,288,435) (2,004,695,520) 210,592,915 OTHER FINANCING SOURCES (USES) Transfers in 2,144,197,211 2,144,197,211 2,144,197,211 - Transfers out (34,067,094) (47,772,632) (47,772,632) -
Total other financing sources, net 2,110,130,117 2,096,424,579 2,096,424,579 - Net change in fund balance (31,022,668)$ (118,863,856) 91,729,059 210,592,915
Variance from Final Budget
Positive (Negative)
Budgeted Amounts
Other
Intergovernmental C harges for services Revenue from the use of money and property Recovered costs
Actual Amounts (Budget Basis)
County of Fairfax, Virginia Fairfax County Public Schools Budgetary Comparison Schedule - Food and Nutrition Services Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit I-3a
Original Final REVENUES
42,775,597$ 51,547,475 54,579,493 3,032,018 40,915,946 1,244,550 1,327,645 83,095
171,277 171,277 8,811 (162,466) 5,000 205,000 1,351,916 1,146,916
Total revenues 83,867,820 53,168,302 57,267,865 4,099,563 EXPENDITURES Education 101,777,879 69,386,079 67,194,264 2,191,815
Total expenditures 101,777,879 69,386,079 67,194,264 2,191,815 Excess (deficiency) of revenues over
(under) expenditures (17,910,059) (16,217,777) (9,926,399) 6,291,378 OTHER FINANCING SOURCES Transfers in from primary government - 9,648,031 9,648,031 -
Total other financing sources - 9,648,031 9,648,031 - Net change in fund balance (17,910,059)$ (6,569,746) (278,368) 6,291,378
Variance from Final Budget
Positive (Negative)
Budgeted Amounts
Intergovernmental
Actual Amounts (Budget Basis)
Other
C harges for services Revenue from the use of money and property
260
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Fairfax County Public Schools Budgetary Comparison Schedule - Grants and Self-Supporting Programs Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit I-3b
Original Final REVENUES
52,165,749$ 74,705,390 44,975,417 (29,729,973) 3,308,550 3,308,550 2,089,899 (1,218,651)
40,000 40,000 41,705 1,705 380,107 1,332,950 1,035,648 (297,302)
Total revenues 55,894,406 79,386,890 48,142,669 (31,244,221) EXPENDITURES Education 82,346,696 125,740,730 62,989,362 62,751,368
Total expenditures 82,346,696 125,740,730 62,989,362 62,751,368 Excess (deficiency) of revenues over
(under) expenditures (26,452,290) (46,353,840) (14,846,693) 31,507,147 OTHER FINANCING SOURCES Transfers in from other governmental funds 20,371,245 20,371,245 20,371,245 - Transfers in from Primary Government 2,260,414 1,886,781 1,886,781 -
Total other financing sources 22,631,659 22,258,026 22,258,026 - Net change in fund balance (3,820,631)$ (24,095,814) 7,411,333 31,507,147
Variance from Final Budget
Positive (Negative)
Budgeted Amounts
Intergovernmental
Actual Amounts (Budget Basis)
Other
C harges for services Revenue from the use of money and property
County of Fairfax, Virginia Fairfax County Public Schools Budgetary Comparison Schedule - Adult and Community Education Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit I-3c
Original Final REVENUES
1,752,023$ 2,188,460 1,910,786 (277,674) 4,033,603 4,033,603 2,375,948 (1,657,655)
37,736 37,736 12,251 (25,485) 65,035 65,035 1,049 (63,986)
Total revenues 5,888,397 6,324,834 4,300,034 (2,024,800) EXPENDITURES Education 6,978,319 7,302,254 5,835,329 1,466,925
Total expenditures 6,978,319 7,302,254 5,835,329 1,466,925 Excess (deficiency) of revenues over
(under) expenditures (1,089,922) (977,420) (1,535,295) (557,875) OTHER FINANCING SOURCES Transfers in 975,000 1,201,537 1,201,537 -
Total other financing sources 975,000 1,201,537 1,201,537 - Net change in fund balance (114,922)$ 224,117 (333,758) (557,875)
Variance from Final Budget
Positive (Negative)
Budgeted Amounts
Intergovernmental
Actual Amounts (Budget Basis)
Other
C harges for services Revenue from the use of money and property
261Financial Section
Fairfax County Public Schools
County of Fairfax, Virginia Fairfax County Public Schools Combining Statement of Net Position - Internal Service Funds June 30, 2021
Exhibit I-4
Health Benefits Trust Insurance
Total Internal Service Funds
ASSETS C urrent assets:
Equity in pooled cash and temporary investments 155,338,416$ 53,150,302 208,488,718 C ash in escrow - 138,038 138,038 Accounts receivable 14,636,061 - 14,636,061
Total assets 169,974,477 53,288,340 223,262,817
DEFERRED OUTFLOW OF RESOURCES Total deferred outflows of resources - - -
LIABILITIES C urrent liabilities:
Accounts payable and accrued liabilities 11,273,796$ 320,373 11,594,169 C ompensated absences payable 151,808 62,894 214,702 Insurance and benefit claims payable 20,786,000 10,047,347 30,833,347 Unearned revenue 12,799,489 - 12,799,489
Total current liabilities 45,011,093 10,430,614 55,441,707 Long-term liabilities:
C ompensated absences payable 65,061 26,955 92,016 Insurance and benefit claims payable 1,094,000 40,189,388 41,283,388
Total long-term liabilities 1,159,061 40,216,343 41,375,404 Total liabilities 46,170,154 50,646,957 96,817,111
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - -
NET POSITION Unrestricted 123,804,323 2,641,383 126,445,706 Net position 123,804,323$ 2,641,383 126,445,706
262
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, Virginia Fairfax County Public Schools Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds For the fiscal year ended June 30, 2021
Exhibit I-5
Health Benefits Trust Insurance
Total Internal Service Funds
OPERATING REVENUES: C harges for services 468,343,051$ 15,606,931 483,949,982
Total operating revenues 468,343,051 15,606,931 483,949,982 OPERATING EXPENSES:
Personnel services 3,273,614 1,191,239 4,464,853 C laims and benefit payments 430,569,980 13,653,787 444,223,767 Professional consultant and contractual services 12,602,355 1,119,991 13,722,346 Other 27,730 325,154 352,884
Total operating expenses 446,473,679 16,290,171 462,763,850 Operating gain / (loss) 21,869,372 (683,240) 21,186,132
NONOPERATING REVENUES: Interest revenue 485,360 - 485,360
Total nonoperating revenues 485,360 - 485,360 C hange in net position 22,354,732 (683,240) 21,671,492
Net position, July 1, 2020 101,449,591 3,324,623 104,774,214 Net position, June 30, 2021 123,804,323$ 2,641,383 126,445,706
263Financial Section
Fairfax County Public Schools
Fairfax County Public Schools Combining Statement of Cash Flows - Internal Service Funds For the fiscal year ended June 30, 2021
Exhibit I-6County of Fairfax, Virginia
Health Benefits Trust Insurance
Total Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided 464,099,079$ 15,606,931 479,706,010 Payments to employees (3,273,614) (1,191,239) (4,464,853) C laims and benefits paid (424,984,417) (9,803,654) (434,788,071) Payments for professional services (11,108,518) (1,101,198) (12,209,716) Payments for other operating expenses (27,730) (325,154) (352,884)
Net cash provided by operating activities 24,704,800 3,185,686 27,890,486 CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 485,360 - 485,360 Net cash provided by investing activities 485,360 - 485,360
Net increase in cash and cash equivalents 25,190,160 3,185,686 28,375,846 C ash and cash equivalents, July 1, 2020 130,148,256 50,102,654 180,250,910 C ash and cash equivalents, June 30, 2021 155,338,416 53,288,340 208,626,756
Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating gain (loss) 21,869,372 (683,240) 21,186,132 Adjustments to reconcile operating income (loss) to net cash provided by operating activities:
Increase in accounts receivable (4,603,309) - (4,603,309) Increase in accounts payable and accrued liabilities 1,493,837 18,793 1,512,630 Increase in actuarial claims payable 5,605,000 3,823,551 9,428,551 Increase (decrease) in compensated absences (19,437) 26,582 7,145 Increase in unearned revenues 359,337 - 359,337
Total adjustments to operating loss 2,835,428 3,868,926 6,704,354 Net cash provided by operating activities 24,704,800$ 3,185,686 27,890,486
C hange in assets and liabilities:
264
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit I-7 Fairfax County Public Schools Fiduciary Funds Statement of Fiduciary Net Position - Trust Funds June 30, 2021
County of Fairfax, Virginia
Pension Trust Fund - Educational Employees'
Supplementary Retirement System OPEB Trust Fund
Total Pension and OPEB Trust Funds
554,641$ - 554,641 489,213 - 489,213
C ash collateral for securities lending 147,105,099 - 147,105,099 82,434,178 - 82,434,178
2,589 37,200 39,789 5,873,379 - 5,873,379
36,302,369 1,430,616 37,732,985
C ommingled funds 1,121,919,693 - 1,121,919,693 U.S. government obligations 134,299,276 - 134,299,276 Asset and mortgage-backed securities 131,235,280 - 131,235,280 C orporate and international bonds 344,900,532 - 344,900,532 C onvertible and preferred securities 10,733,586 - 10,733,586 Stocks 567,415,582 - 567,415,582 Municipal bonds 629,074 - 629,074 Real estate 156,132,124 - 156,132,124
Multi asset class solutions 306,184,789 - 306,184,789 Hedge funds 187,556,946 - 187,556,946 Private equity 210,360,927 - 210,360,927 Private debt 28,307,673 - 28,307,673 Infrastructure 229,486 - 229,486 Investment in pooled funds - 206,944,010 206,944,010
Equipment, net of depreciation 40,854 - 40,854 3,472,707,290 208,411,826 3,681,119,116
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - -
2,339,106$ 37,200 2,376,306 51,085,575 - 51,085,575
147,105,099 - 147,105,099 26,426 - 26,426
200,556,206 37,200 200,593,406
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - -
3,272,151,084$ 208,374,626 3,480,525,710
Accounts payable and accrued liabilities
Investments:
Accrued interest and dividends receivable Receivable from sale of pension investments
Total assets
LIABILITIES
ASSETS C ash and cash equivalents C ash with fiscal agents
Short-term investments Accounts receivable
Total liabilities
NET POSITION Held in trust for pension/OPEB benefits
Payable for purchase of pension investments Liabilities for collateral received under securities
lending agreements C apital leases
265Financial Section
Fairfax County Public Schools
Fairfax County Public Schools Statement of Changes in Fiduciary Net Position - Trust Funds For the fiscal year ended June 30, 2021
County of Fairfax, Virginia Exhibit I-8
Pension Trust Fund -
Educational Employees'
Supplementary Retirement System OPEB Trust Fund
Total Pension and OPEB Trust Funds
104,784,310$ 15,348,747 120,133,057 48,934,340 - 48,934,340
153,718,650 15,348,747 169,067,397
From investment activities: Net appreciation in fair value of investments 698,406,122 47,506,730 745,912,852 Interest and dividends 31,046,491 72 31,046,563
Total gain from investment activities 729,452,613 47,506,802 776,959,415 Less investment activities expenses:
Management fees 7,330,144 100,744 7,430,888 Other 1,743,666 500 1,744,166
Total investment activities expenses 9,073,810 101,244 9,175,054
Net gain from investment activities 720,378,803 47,405,558 767,784,361
From securities lending activities: Securities lending income 504,955 - 504,955
Less securities lending expenses: Management fees (145,078) - (145,078)
Total securities lending activities expenses (145,078) - (145,078)
Net income from securities lending activities 359,877 - 359,877 Net investment gain 720,738,680 47,405,558 768,144,238
Total additions 874,457,330 62,754,305 937,211,635 DEDUCTIONS
187,660,019 10,348,747 198,008,766 3,605,963 - 3,605,963 4,423,439 - 4,423,439
Total deductions 195,689,421 10,348,747 206,038,168 678,767,909 52,405,558 731,173,467
2,593,383,175 155,969,068 2,749,352,243 3,272,151,084$ 208,374,626 3,480,525,710
ADDITIONS
Net position, June 30, 2021
Benefits payments Refunds of contributions Administrative expenses
C hange in net position Net position, July 1, 2020
Investment income:
C ontributions: Employer Plan members
Total contributions
266
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
267Financial Section
The Fairfax County Redevelopment and Housing Authority (FCRHA) is responsible for low income housing and community development programs within the County. FCRHA was approved by a voter referendum in November 1965 and was activated by the County Board of Supervisors in February 1966. FCRHA is a political subdivision of and reports to the Commonwealth of Virginia. The County Board of Supervisors appoints the FCRHA Board of Commissioners and the County provides certain managerial and other related assistance to FCRHA.
Primary Government represents FCRHA’s use of an enterprise fund to report its activities. FCRHA activities are funded by federal grants from the U.S. Department of Housing and Urban Development, rents, and other user charges resulting from operations of subsidized housing, development and financing fees, investment income, and loan proceeds. These funds provide rental housing, housing for the elderly/group homes, loans for home ownership and home improvement, tenant assistance, community development, and administration of these programs.
Component Units are real estate limited partnerships of FCRHA. FCRHA is the managing general partner and has certain rights which enable it to impose its will on the limited partnerships. FCRHA is legally obligated to fund operating deficits, making FCRHA financially accountable for the partnerships.
Fairfax County Redevelopment and Housing Authority
268
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Fairfax County Redevelopment and Housing Authority Statement of Net Position June 30, 2021
Exhibit JCounty of Fairfax, Virginia
Housing Authority
C omponent Units Total Entity
Equity in pooled cash and temporary investments 24,333,274$ - 24,333,274 C ash in bank 34,091,793 7,041,352 41,133,145 Investments 2,205,000 - 2,205,000 Receivables (net of allowances):
Accounts 5,314,675 109,223 5,423,898 Accrued interest 151,743 - 151,743 Notes 239,901 - 239,901
Prepaid and other assets 387,098 114,942 502,040 Restricted assets:
C ash reserves 15,909,635 - 15,909,635 Performance and other deposits 8,721,783 386,760 9,108,543 Investments 1,212,739 - 1,212,739
Total current assets 92,567,641 7,652,277 100,219,918
Restricted assets: C ash reserves 25,015,133 29,928,348 54,943,481
Total restricted assets 25,015,133 29,928,348 54,943,481 C apital assets:
Non-depreciable/non-amortizable: Land 36,886,081 7,504,792 44,390,873 C onstruction in progress 3,876,835 - 3,876,835
Depreciable/amortizable: Vehicles and equipment 1,180,607 6,205,575 7,386,182 Buildings and improvements 181,559,343 53,861,041 235,420,384 Accumulated depreciation (132,581,600) (15,315,075) (147,896,675)
Total capital assets, net 90,921,266 52,256,333 143,177,599 Other long-term assets:
Notes receivable 28,150,084 - 28,150,084 Prepaid and other assets 2,722,883 100,991 2,823,874
Total other long-term assets 30,872,967 100,991 30,973,958 Total long-term assets 146,809,366 82,285,672 229,095,038
239,377,007 89,937,949 329,314,956
Deferred outflow for pensions 8,315,152 - 8,315,152 Deferred outflow for OPEB 1,905,940 - 1,905,940
10,221,092 - 10,221,092
C urrent liabilities: Accounts payable and accrued liabilities 3,387,627$ 2,040,809 5,428,436 Accrued salaries and benefits 1,003,133 - 1,003,133 Due to FC RHA - 1,682,405 1,682,405 Unearned revenues 781,354 174,239 955,593 Performance and other deposits 1,835,276 291,663 2,126,939 Loans, notes and bonds payable, net of deferred financing fees 2,762,582 24,563,045 27,325,627 C ompensated absences payable 469,185 7,747 476,932
Total current liabilities 10,239,157 28,759,908 38,999,065 Long-term liabilities:
Loans, notes and bonds payable, net of deferred financing fees 30,787,088 50,060,939 80,848,027 C ompensated absences payable 417,797 29,662 447,459 Net OPEB liability 291,271 - 291,271 Net pension liability 29,262,385 - 29,262,385 Other accrued long-term interest 5,653,399 8,976,546 14,629,945
Total long-term liabilities 66,411,940 59,067,147 125,479,087 Total liabilities 76,651,097 87,827,055 164,478,152
DEFERRED INFLOWS OF RESOURCES Deferred inflow for pension 1,541,237 - 1,541,237 Deferred inflow for OPEB 2,550,290 - 2,550,290
Total deferred inflows of resources 4,091,527 - 4,091,527
74,757,675 1,794,996 76,552,671 41,715,134 5,860,798 47,575,932 52,382,666 (5,544,900) 46,837,766
168,855,475$ 2,110,894 170,966,369 Net Position Unrestricted
Net investment in capital assets Restricted
NET POSITION
LIABILITIES
Total assets
Long-term assets:
C urrent assets: ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Total deferred outflows of resources
269Financial Section
Fairfax County Redevelopment and Housing Authority
Fairfax County Redevelopment and Housing Authority Statement of Revenues, Expenses, and Changes in Net Position For the fiscal year ended June 30, 2021
Exhibit J-1County of Fairfax, Virginia
Housing Authority
C omponent Units Total Entity
31,318,992$ 3,775,471 35,094,463 Other 5,491,853 857,725 6,349,578
36,810,845 4,633,196 41,444,041
18,611,642 1,095,130 19,706,772 7,987,237 1,519,424 9,506,661 7,405,269 1,154,485 8,559,754
60,203,283 - 60,203,283 4,269,489 1,593,858 5,863,347
375,342 67,758 443,100 5,248,253 655,486 5,903,739
104,100,515 6,086,141 110,186,656 (67,289,670) (1,452,945) (68,742,615)
82,395,260 2,220,009 84,615,269 Owner Distribution (296,502) - (296,502)
308,333 632,185 940,518 (1,045,450) (3,336,200) (4,381,650)
Other nonoperating revenue - 6,299,844 6,299,844 Loss on sale (1,257,693) - (1,257,693) C ontribution from C ounty 4,079,176 - 4,079,176 C ontribution to C ounty (13,119,601) - (13,119,601)
71,063,523 5,815,838 76,879,361 3,773,853 4,362,893 8,136,746
159,328,967 (3,351,893) 155,977,074 Prior period adjustment 5,752,655 1,099,894 6,852,549
Net position, July 1, 2020 as restated 165,081,622 (2,251,999) 162,829,623 168,855,475$ 2,110,894 170,966,369
OPERATING REVENUES: Dwelling rentals
Total operating revenues
Interest expense
Total nonoperating revenues, net
OPERATING EXPENSES: Personnel services Materials and supplies
Total operating expenses Operating loss
NONOPERATING REVENUES (EXPENSES): Intergovernmental revenue
Interest revenue
Repairs and maintenance Housing assistance payments Depreciation and amortization C ontractual services Utilities
C hange in net position Net Position, July 1, 2020
Net Position, June 30, 2021
270
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Fairfax County Redevelopment and Housing Authority Statement of Cash Flows For the fiscal year ended June 30, 2021
Exhibit J-2County of Fairfax, Virginia
Housing Authority
C omponent Units
Total Entity
28,170,009$ 3,821,535 31,991,544 5,494,071 857,725 6,351,796
(17,771,083) (1,057,721) (18,828,804) Payments made for housing assistance (60,203,283) - (60,203,283) Payments to suppliers for goods and services (20,991,671) (169,454) (21,161,125)
(65,301,957) 3,452,085 (61,849,872)
Owner Distribution (296,502) - (296,502) C ontribution from FC RHA - 6,299,844 6,299,844
83,126,559 2,220,009 85,346,568 C ontribution to C ounty (5,432,175) - (5,432,175)
77,397,882 8,519,853 85,917,735
(1,971,226) (13,799,507) (15,770,733) - 7,550,000 7,550,000
(519,038) (2,042,524) (2,561,562) (21,403,338) (457,792) (21,861,130) (23,893,602) (8,749,823) (32,643,425)
(1,443,271) - (1,443,271) Disbursement of loans and advances receivable 27,261,174 - 27,261,174 Maturity of investments 472,077 - 472,077
1,470,000 - 1,470,000 308,320 632,185 940,505
28,068,300 632,185 28,700,485 16,270,623 3,854,300 20,124,923 91,800,995 33,502,160 125,303,155
108,071,618$ 37,356,460 145,428,078
Reconciliation of operating loss to net cash provided by (used in) operating activities:
(67,289,670)$ (1,452,945) (68,742,615) Adjustments to reconcile operating loss to net cash provided by (used in) operating activities:
4,269,489 1,593,858 5,863,347 Provision for doubtful accounts 2,780 - 2,780
(2,586,615) 6,901 (2,579,714) (321,610) (63,905) (385,515)
1,224,601 - 1,224,601 (7,586) 1,042,262 1,034,676 36,325 - 36,325
(45,301) 22,896 (22,405) Due to FC RHA - 2,263,855 2,263,855
(584,370) 39,163 (545,207) 1,987,713 4,905,030 6,892,743
Net cash provided by (used in) operating activities (65,301,957)$ 3,452,085 (61,849,872)
(11,989,913)$ - (11,989,913) (1,257,693) - (1,257,693)
Amortization of debt issuance costs 8,482 252,924 261,406 Loss on sale of assets
Noncash investing, capital, and financing activities:
Prepaid items and other assets
C hange in assets and liabilities:
Operating income loss
Accounts receivable
Net Pension Liability and related outflows/inflows
Interest received Net cash provided by investing activities
Net cash used in capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES
C ontributions from C ounty, net
Increase in accounts payable and accrued liabilities
Performance and other deposits
Unearned revenues Total adjustments to operating income
Net OPEB liability and related outflows/inflows
Net increase in cash and cash equivalents
Receipt of loan and advance repayments
Acquisition of investments
C ash and cash equivalents, July 1, 2020, as restated C ash and cash equivalents, June 30, 2021
Depreciation and amortization
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Proceeds from issuance of debt Interest payments Debt principal payments
Net cash provided by noncapital financing activities
Other operating cash receipts Payments to employees for services
Net cash provided by (used) in operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Intergovernmental revenue received
CASH FLOWS FROM OPERATING ACTIVITIES Rental receipts
271Financial Section
The Fairfax County Park Authority (Park Authority) was created by the Board of Supervisors of the County on December 6, 1950, to maintain and operate the public parks and recreational facilities located in the County. The Board appoints the Park Authority’s Board members, and a substantial portion of the cost of the Park Authority’s operations is funded by the County.
General Fund (Financed from County General Fund) is used to account for the operations of the park facilities that are funded by the County.
Park Revenue Fund is a special revenue fund used to account for the operations of the park facilities that are funded from park operating revenues.
Financed from County Construction Fund is a capital projects fund used to account for specific maintenance projects for park facilities that are funded by the County’s Construction Fund. Financed from County Environmental and Energy Program Fund is a capital projects fund that supports projects that advance the County’s Environmental Vision and Operational Energy Strategy.
Park Construction Bond Fund is a capital projects fund used to account for all construction projects and capital improvements of the Park Authority financed by County general obligation bonds.
Financed from County Federal-State Grant Fund is a special revenue fund used to account for the utilization of federal and state funds to assist County citizens. Park Capital Improvement Fund is a capital projects fund used to account for all Park Authority construction projects and capital improvements financed through interest earned and transfers from the Park Revenue and Operating Fund.
Fairfax County Park Authority
272
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Fairfax County Park Authority Balance Sheet June 30, 2021
County of Fairfax, Virginia
Major Governmental C apital
Special Revenue Fund - Park Revenue
Financed from C ounty
C onstruction Fund
-$ 9,229,050 -
- 40,160 - 2,738,559 - 1,939,888
Due from intergovernmental units - 1,134 - Prepaid and other asset 120,478 146,513 29,430 Restricted assets:
Equity in pooled cash and temporary investments - - - Total assets 2,859,037 9,416,857 1,969,318
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - -
2,859,037$ 9,416,857 1,969,318
578,061$ 1,962,115 1,966,303 Accrued salaries and benefits 2,090,663 2,257,208 - Due to primary government 132,629 2,673 -
- - 3,015 57,684 11,878,114 -
- 50,190 - Total liabilities 2,859,037 16,150,300 1,969,318
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - -
Total liabilities and deferred inflows of resources 2,859,037 16,150,300 1,969,318
Prepaid 120,478 29,430 - 146,513 -
E.C .Lawrence Trust - - - Restricted for:
C apital projects - - - - - -
C ommitted to: Other capital projects - - -
Unassigned (120,478) (6,879,956) (29,430) Total fund balances - (6,733,443) -
2,859,037$ 9,416,857 1,969,318
Reconciliation of the Balance Sheet to the Statement of Net Position
Fund balances - Total governmental funds 37,978,323$
Amounts reported for governmental activities in the Statement of Net Position are different because:
C apital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental funds. The cost of the assets is $967,479,447 and the accumulated depreciation is $294,267,557. 673,211,890
C ompensated absences payable (5,774,638)$ Loan from Primary Government (9,599,400) Accrued interest payable (22,795) (15,396,833)
Pension and other postemployment benefit liabilities are not due and payable in the current period and, therefore, are not reported in governmental funds. The deferred outflow related to pensions is $14,881,081, and the net pension liability is $58,522,476. The deferred inflow related to pension is $3,672,733. The deferred outflow related to OPEB is $5,123,272, and the net OPEB liability is $743,003. The deferred inflow related to OPEB is $6,188,594. (49,122,453)
Net position of governmental activities 646,670,927$
Nonspendable:
Due from primary government
Unearned revenues
Total assets and deferred outflows of resources
Total liabilities, deferred inflows of resources, and fund balances
Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds:
General Fund (Financed
from C ounty General Fund)
Repair and replacement
Performance and other deposits
C ontract retainages
LIABILITIES Accounts payable and accrued liabilities
Inventory
FUND BALANCES
Accounts
ASSETS Equity in pooled cash and temporary investments Receivables:
273Financial Section
Fairfax County Park Authority
Exhibit K
Funds Projects Funds
Financed from C ounty
Environmental and Energy Program
Fund
Park C onstruction
Bond (Financed
from C ounty C onstruction Fund)
Park C apital Improvement
Total Governmental
Funds
- - 29,500,091 38,729,141
- - - 40,160 61,026 - - 4,739,473
- 184,300 - 185,434 Due from intergovernmental units 21,564 2,290 3,808 324,083 Prepaid and other asset
Restricted assets: - 15,063,526 2,207,926 17,271,452 Equity in pooled cash and temporary investments
82,590 15,250,116 31,711,825 61,289,743 Total assets
DEFERRED OUTFLOWS OF RESOURCES - - - - Total deferred outflows of resources
82,590 15,250,116 31,711,825 61,289,743
82,590 659,488 251,549 5,500,106 - - - 4,347,871 Accrued salaries and benefits - - - 135,302 Due to primary government - 193,383 8,200 204,598 - - 373,496 12,309,294 - - 764,059 814,249
82,590 852,871 1,397,304 23,311,420 Total liabilities
DEFERRED INFLOWS OF RESOURCES - - - - Total deferred inflows of resources
82,590 852,871 1,397,304 23,311,420 Total liabilities and deferred inflows of resources
21,564 2,290 3,808 177,570 Prepaid - - - 146,513 Inventory - - 1,507,926 1,507,926 E.C .Lawrence Trust
Restricted for: - 14,397,245 19,906,123 34,303,368 C apital projects - - 700,000 700,000
C ommitted to: - - 8,196,664 8,196,664 Other capital projects
(21,564) (2,290) - (7,053,718) Unassigned - 14,397,245 30,314,521 37,978,323 Total fund balances
82,590 15,250,116 31,711,825 61,289,743 Total liabilities, deferred inflows of resources, and fund balances
Nonspendable:
Repair and replacement
ASSETS
Receivables:
FUND BALANCES
Equity in pooled cash and temporary investments
Accounts Due from primary government
LIABILITIES Total assets and deferred outflows of resources
Accounts payable and accrued liabilities
C ontract retainages Unearned revenues Performance and other deposits
274
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Fairfax County Park Authority Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Major Governmental Special Revenue Funds C apital
Special Revenue Fund - Park Revenue
Financed from C ounty Federal-State Grant Fund
Financed from C ounty C onstruction
Fund
36,203,094$ 1,706,529 71,706 12,345,731 253,354 28,131,171 - -
Developers' contributions - - - - 9,504 2,575,994 - 208,165
- - - - - 358,256 - -
36,465,952 32,771,950 71,706 12,553,896
C urrent: Parks, recreation, and cultural 36,287,378 33,592,302 71,706 6,905,400
Intergovernmental - 820,000 - - 178,574 - - 5,648,496
- 1,360,700 - - - 385,764 - -
36,465,952 36,158,766 71,706 12,553,896
(under) expenditures - (3,386,816) - -
- - - - - (3,386,816) - -
- (3,325,398) - - Decrease in reserve for inventories - (21,229) - -
-$ (6,733,443) - -
Total expenditures
Other Total revenues
EXPENDITURES
Intergovernmental C harges for services
Revenue from the use of money and property
REVENUES
General Fund (Financed
from C ounty General Fund)
Excess (deficiency) of revenues over
Interest and other charges Principal retirement
C apital outlay
Total other financing sources (uses), net
Gifts, donations, and contributions
Net change in fund balances Fund balances, July 1, 2020
Fund balances, June 30, 2021
Debt service:
OTHER FINANCING SOURCES (USES)
275Financial Section
Fairfax County Park Authority
Exhibit K-1
Funds Projects Funds
Financed from C ounty
Environmental and Energy
Program Fund
Financed from C ounty
Park C onstruction Bond
Park C apital Improvement
Total Governmental
Funds
1,028,294 15,188,237 1,532,296 68,075,887 - - - 28,384,525 - - 7,917,693 7,917,693 Developers' contributions - - 2,407,209 5,200,872 - - 648,993 648,993 - - - 358,256
1,028,294 15,188,237 12,506,191 110,586,226
C urrent: 376,107 292,866 1,105,692 78,631,451 Parks, recreation, and cultural
- - - 820,000 Intergovernmental 652,187 16,144,878 3,121,228 25,745,363
- - - 1,360,700 - - - 385,764
1,028,294 16,437,744 4,226,920 106,943,278
- (1,249,507) 8,279,271 3,642,948 (under) expenditures
- - - - - (1,249,507) 8,279,271 3,642,948 - 15,646,752 22,035,250 34,356,604 - - - (21,229) Decrease in reserve for inventories - 14,397,245 30,314,521 37,978,323
continued
OTHER FINANCING SOURCES (USES)
C apital outlay Debt service:
Total expenditures Excess (deficiency) of revenues over
Principal retirement Interest and other charges
Fund balances, June 30, 2021
Total other financing sources (uses), net Net change in fund balances
Fund balances, July 1, 2020
REVENUES Intergovernmental
Gifts, donations and contributions Other
Total revenues EXPENDITURES
Revenue from the use of money and property
C harges for services
276
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit K-1 concludedFairfax County Park Authority
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For the fiscal year ended June 30, 2021
County of Fairfax, Virginia
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities
3,642,948$
Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeds depreciation expense in the current period.
25,745,363$ (18,572,606) 7,172,757
but do not appear in the governmental funds because they are not financial resources. 3,505,012
In the Statement of Activities, the gain or loss on the disposition of capital assets is reported. However, in the governmental funds only the proceeds from sales are reported, which increases fund balance. Thus, the difference is the depreciated cost of (996,594) the capital assets dispositions.
Decrease in fund balance reserve (21,229)
financing use when debt is refunded in governmental funds and thus, reduces fund balance. However, the principal payment reduces the liabilities in the Statement of Net Position and do not result in the Statement of Activities.
Principal payments of bonds and notes 1,360,700
reported as expenses and liabilities as they accrue. The timing differences are as follows:
C ompensated absences (145,356)
Pension expense (2,111,936) Other postemployment benefit expense (90,556)
12,315,746$
Donations of capital assets increase net position in the Statement of Activities,
C apital outlays
Net change in fund balances - Total governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of
Depreciation expense
Repayment of the principal amount of long-term debt is reported as an expenditure or as an other
C hange in net position of governmental activities
Under the modified accrual basis of accounting used in the governmental funds, expenditures for the
is not reported in governmental funds:
following are not recognized until they mature. In the Statement of Activities, however, they are
Pension liability does not require the use of current financial resources and, therefore,
277Financial Section
Fairfax County Park Authority
Fairfax County Park Authority Budgetary Comparison Schedule - General Fund (Financed from County General Fund) (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit K-2aCounty of Fairfax, Virginia
Original Final REVENUES
26,769,895$ 28,160,017 26,006,192 (2,153,825) 682,635 682,635 253,353 (429,282)
Revenue from the use of money and property - - 9,504 9,504 Total revenues 27,452,530 28,842,652 26,269,049 (2,573,603)
EXPENDITURES C urrent: Parks, recreation, and cultural 27,452,530 28,156,517 26,269,049 1,887,468
Total expenditures 27,452,530 28,156,517 26,269,049 1,887,468 Net change in fund balance -$ 686,135 - (686,135)
C harges for services
Variance from Final Budget
Positive (Negative)
Budgeted Amounts
Intergovernmental
Actual Amounts (Budget Basis)
Fairfax County Park Authority Budgetary Comparison Schedule - Park Revenue Fund (Budget Basis) For the fiscal year ended June 30, 2021
Exhibit K-2bCounty of Fairfax, Virginia
Original Final REVENUES
45,554,134$ 46,217,814 32,076,690 (14,141,124) 2,668,938 2,668,938 2,482,866 (186,072)
241,574 241,574 358,256 116,682 Other 264,395 264,395 93,128 (171,267)
Total revenues 48,729,041 49,392,721 35,010,940 (14,381,781) EXPENDITURES Parks, recreation, and cultural 47,134,162 47,614,833 36,158,766 11,456,067
Total expenditures 47,134,162 47,614,833 36,158,766 11,456,067 Excess of revenues over expenditures 1,594,879 1,777,888 (1,147,826) (2,925,714)
OTHER FINANCING USES Transfers in from primary government - 1,706,529 1,706,529 -
Total other financing uses - 1,706,529 1,706,529 - Net change in fund balance 1,594,879$ 3,484,417 558,703 (2,925,714)
Variance from Final Budget
Positive (Negative)
Budgeted Amounts
Gifts, donations, and contributions
Actual Amounts (Budget Basis)
C harges for services Revenue from the use of money and property
278
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
The Fairfax County Economic Development Authority (EDA) provides direct assistance to firms which intend to establish their operations within the County. The EDA’s mission is to attract businesses to Fairfax County and to work with the existing businesses to retain them as they expand and create new jobs. The EDA is an independent authority, legally authorized by an enactment of the Virginia General Assembly and formally created by resolution of the County Board of Supervisors, which appoints the seven members of EDA’s Commission and also appropriates funds annually for operating expenditures incurred in carrying out EDA’s mission.
Governmental Funds is used to account for the operations of the EDA financed from the County Fund, all of which are funded through the County. It also includes cash incentives awarded to businesses relocating or expanding business operations in Fairfax County, and funded by the Commonwealth’s Development Opportunity Fund (COF) grant program.
279Financial Section
Fairfax County Economic Development Authority
Exhibit LCounty of Fairfax, Virginia Fairfax County Economic Development Authority Balance Sheet June 30, 2021
Governmental Funds
4,000,000$ 470,300
Total assets 4,470,300
DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources -
Total assets and deferred outflows of resources 4,470,300$
Accounts payable and accrued liabilities 108,651$ Accrued salaries and benefits 361,649 Unearned revenue 4,000,000
Total liabilities 4,470,300
DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources -
Total liabilities and deferred inflows of resources 4,470,300
FUND BALANCE Unassigned -
4,470,300$
Reconciliation of the Balance Sheet to the Statement of Net Position
Fund balance - Governmental Funds -$
Amounts reported for governmental activities in the Statement of Net Position are different because:
C apital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The cost of the assets is $1,196,100 and the accumulated depreciation and amortization is $1,050,447. 145,653
Long-term liabilities, including compensated absences payable of $552,762 and unearned rent of $275,823, are not due and payable in the current period and, therefore, are not reported in the governmental funds. (828,585)
Pension liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds. The deferred outflow related to pensions is $1,922,067 and the net pension liability is $6,763,774. The deferred inflow related to pensions is $1,121,229. (5,962,936)
OPEB liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds. The deferred outflow related to OPEB is $306,630 and the net OPEB liability is $47,091. The deferred inflow related to OPEB is $574,403. (314,864)
Net position of governmental activities (6,960,732)$
ASSETS
Due from primary government
Total liabilities, deferred inflows of resources and fund balance
LIABILITIES
Restricted cash and cash equivalents
280
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Exhibit L-1County of Fairfax, Virginia Fairfax County Economic Development Authority Statement of Revenues, Expenditures, and Changes in Fund Balance For the fiscal year ended June 30, 2021
Governmental Funds
63,822,216$ Total revenues 63,822,216
C urrent: C ommunity development 63,822,216
Total expenditures 63,822,216 Excess of revenues over expenditures -
- -$
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities
Net change in fund balance - governmental funds -$
Amounts reported for governmental activities in the Statement of Activities are different because:
Some 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:
Depreciation and amortization expense (110,644)$ Increase in liability for compensated absences (91,157) Unearned rent 179,906 Pension expense 57,650 Other postemployment benefit expense (7,090) 28,665
C hange in net position of governmental activities 28,665$
Fund balance, June 30, 2021 Fund balance, July 1, 2020
EXPENDITURES
REVENUES Intergovernmental
281Financial Section
Fairfax County Economic Development Authority
Exhibit L-2County of Fairfax, Virginia Fairfax County Economic Development Authority Budgetary Comparison Schedule - General Fund (Financed from County General Fund) (Budget Basis) For the fiscal year ended June 30, 2021
Original Final REVENUES Intergovernmental 8,841,483$ 8,879,483 8,865,843 (13,640)
Total revenues 8,841,483 8,879,483 8,865,843 (13,640) EXPENDITURES C ommunity development 8,841,483 8,879,483 8,865,843 13,640
Total expenditures 8,841,483 8,879,483 8,865,843 13,640 Net change in fund balance -$ - - -
Variance from Final Budget
Positive (Negative)
Budgeted Amounts Actual Amounts (Budget Basis)
282
Other Supplementary Information
County of Fairfax, Virginia Annual Comprehensive Financial Report
Statistical Section
he Statistical Section provides financial statement users with additional historical
perspective, context, and detail to assist in using T the information in the financial statements, including the accompanying notes, and required supplementary information to understand and assess the County’s economic condition. Information is presented in the following five categories:
1.0 Financial trends information 2.0 Revenue capacity information 3.0 Debt capacity information 4.0 Demographic and economic information 5.0 Operating information
283Statistical Section (unaudited)
Statistical Section (unaudited)
284
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 1.1 - Net Position by Component Last Ten Fiscal Years
1.0 - Financial trends information is intended to assist users in understanding and assessing how the County’s financial position has changed over time. There are four tables presented in this section.
2021 2020 2019 2018 2017
Governmental activities:
Net investment in capital assets 2,347,835,603$ 2,265,813,475 2,213,668,557 2,070,863,206 2,001,991,926
Restricted 355,681,686 382,010,214 475,424,529 456,321,016 388,129,831
Unrestricted (deficit)(1 ) (3,143,115,712) (3,108,132,334) (3,038,583,029) (3,045,029,065) (2,881,760,586)
Net position, governmental activities (439,598,423)$ (460,308,645) (349,489,943) (517,844,843) (491,638,829)
Business-type activities:
Net investment in capital assets 1,207,780,108$ 1,112,420,058 1,065,086,054 1,038,360,082 1,003,960,254
Restricted 17,941,505 20,281,937 19,398,343 18,178,132 14,185,711
Unrestricted 98,648,390 133,460,268 119,690,633 99,372,962 90,123,639
Net position, business-type activities 1,324,370,003$ 1,266,162,263 1,204,175,030 1,155,911,176 1,108,269,604
Total Primary government:
Net investment in capital assets 3,555,615,711$ 3,378,233,533 3,278,754,611 3,109,223,288 3,005,952,180
Restricted 373,623,191 402,292,151 494,822,872 474,499,148 402,315,542
Unrestricted (deficit) (3,044,467,322) (2,974,672,066) (2,918,892,396) (2,945,656,103) (2,791,636,947)
Net position, Primary Government 884,771,580$ 805,853,618 854,685,087 638,066,333 616,630,775
Source: Fairfax C ounty Department of Finance
Notes: (1)
2021 2020 2019 2018 2017
1,782,043,298$ 1,741,833,436 1,715,069,054 1,726,348,892 1,715,069,179
(2) Fiscal Year 2012 net position restated in Fiscal Year 2013 due to the implementation of GASB statement 65.
(3) Fiscal Year 2014 net position restated in Fiscal Year 2015 due to the implementation of GASB statement 68.
(4) Fiscal Year 2017 net position restated in Fiscal Year 2018 due to the implementation of GASB statement 75.
Fiscal Year
The C ounty issues debt for the construction of Public Schools and Park Authority facilities. The C ounty reports this debt; whereas, the Public Schools and Park Authority report the related capital assets and unspent bond proceeds. As a result, the debt reduces unrestricted net position for the primary government. The amount of this debt related to investments in capital assets and unspent bond proceeds for these component units that is outstanding for each fiscal year is as follows:
Fiscal Year
(4)
285Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012
Governmental activities:
1,913,173,352 1,875,208,103 1,861,776,623 1,736,906,426 1,695,143,766 Net investment in capital assets
355,513,953 318,966,582 286,196,280 214,950,085 226,409,285 Restricted
(2,732,479,263) (2,802,308,892) (2,960,996,275) (1,657,422,986) (1,581,687,019) Unrestricted (deficit)(1)
(463,791,958) (608,134,207) (813,023,372) 294,433,525 339,866,032 Net position, governmental activities
Business-type activities:
940,641,576 892,414,328 843,276,715 778,825,722 769,135,097 Net investment in capital assets
73,853,503 66,038,662 43,116,468 44,113,954 51,055,374 Restricted
38,417,623 66,651,531 100,358,086 147,119,567 116,578,189 Unrestricted
1,052,912,702 1,025,104,521 986,751,269 970,059,243 936,768,660 Net position, business-type activities
Total Primary government:
2,853,814,928 2,767,622,431 2,705,053,338 2,515,732,148 2,464,278,863 Net investment in capital assets
429,367,456 385,005,244 329,312,748 259,064,039 277,464,659 Restricted
(2,694,061,640) (2,735,657,361) (2,860,638,189) (1,510,303,419) (1,465,108,830) Unrestricted
589,120,744 416,970,314 173,727,897 1,264,492,768 1,276,634,692 Net position, Primary Government
2016 2015 2014 2013 2012
1,674,949,073 1,616,079,489 1,625,585,624 1,596,333,283 1,453,383,980
Fiscal Year
Fiscal Year
(2)(3)
286
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 1.2 - Changes in Net Position Last Ten Fiscal Years
2021 2020 2019 2018 2017
Expenses
Governmental activities:
General government administration 258,112,138$ 258,330,991 200,274,042 190,974,147 199,163,586
Judicial administration 71,191,932 76,694,008 65,346,777 64,060,042 62,157,826
Public safety 882,293,607 879,159,005 780,408,993 783,282,501 743,811,404
Public works 282,251,099 274,427,262 251,705,576 255,772,468 220,029,595
Health and welfare 797,755,569 721,920,761 660,919,624 641,619,815 621,738,349
C ommunity development 569,687,675 550,075,342 442,747,859 553,891,606 449,963,548
Parks, recreation, and cultural 133,178,188 143,686,850 133,504,969 132,413,348 124,438,465
Education - for Public Schools 2,339,297,904 2,332,366,853 2,251,573,120 2,139,229,138 2,085,926,217
Interest on long-term debt 99,955,370 103,197,911 114,012,753 113,312,939 108,077,416
Total expenses, governmental activities 5,433,723,482 5,339,858,983 4,900,493,713 4,874,556,004 4,615,306,406
Business-type activities:
Public works - Sewer 195,221,272$ 193,400,681 188,706,778 188,232,208 177,630,559
Total expenses, business-type activities 195,221,272 193,400,681 188,706,778 188,232,208 177,630,559
Total expenses, Primary Government 5,628,944,754 5,533,259,664 5,089,200,491 5,062,788,212 4,792,936,965
Program Revenues
Governmental activities:
C harges for services:
Public safety 73,317,201$ 69,427,621 73,816,732 74,116,426 70,562,165
Public works 176,467,547 173,483,022 170,109,205 158,834,077 129,171,598
Health and welfare 42,688,380 74,148,243 86,877,525 77,063,723 80,070,825
Other activities 332,441,013 360,181,203 375,485,955 345,815,823 335,242,533
Operating grants and contributions 504,962,481 346,819,376 274,272,173 273,051,191 264,019,862
C apital grants and contributions 64,416,721 40,729,751 45,889,290 49,319,980 22,209,405
1,194,293,343 1,064,789,216 1,026,450,880 978,201,220 901,276,388
Business-type activities:
C harges for services:
Public works - Sewer 251,162,619$ 240,034,485 232,435,065 225,733,347 220,959,308
C apital grants and contributions 1,475,624 2,595,202 859,618 7,614,925 12,513,674
252,638,243 242,629,687 233,294,683 233,348,272 233,472,982
1,446,931,586 1,307,418,903 1,259,745,563 1,211,549,492 1,134,749,370
Net (Expense) Revenue
Governmental activities (4,239,430,139) (4,275,069,767) (3,874,042,833) (3,896,354,784) (3,714,030,018)
Business-type activities 57,416,971 49,229,006 44,587,905 45,116,064 55,842,423
Total Primary Government (4,182,013,168)$ (4,225,840,761) (3,829,454,928) (3,851,238,720) (3,658,187,595)
Fiscal Year
Total program revenues, governmental activities
Total program revenues, business-type activities
Total program revenues, Primary Government
287Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012
Expenses
Governmental activities:
188,767,791 183,647,484 201,180,941 201,445,282 201,444,643 (3) General government administration
58,125,849 55,830,358 54,913,419 46,336,343 54,731,149 Judicial administration
702,043,058 670,432,665 695,690,761 658,186,021 621,850,677 Public safety
204,873,695 204,114,861 195,014,404 185,250,816 176,714,926 Public works
589,307,995 557,312,024 551,586,755 542,052,102 562,237,332 Health and welfare
373,621,317 352,960,858 352,759,047 387,551,012 393,528,633 C ommunity development
112,957,367 112,338,852 107,762,594 112,057,718 114,767,984 Parks, recreation, and cultural
1,998,723,980 1,936,673,334 1,883,055,936 1,843,611,090 1,769,700,781 Education - for Public Schools
94,644,722 101,276,354 109,563,020 117,251,705 112,604,312 Interest on long-term debt
4,323,065,774 4,174,586,790 4,151,526,877 4,093,742,089 4,007,580,437 Total expenses, governmental activities
Business-type activities:
183,076,813 174,932,128 174,845,675 169,212,487 163,955,907 (3) Public works - Sewer
183,076,813 174,932,128 174,845,675 169,212,487 163,955,907 Total expenses, business-type activities
4,506,142,587 4,349,518,918 4,326,372,552 4,262,954,576 4,171,536,344 Total expenses, Primary Government
Program Revenues
Governmental activities:
C harges for services:
70,934,542 71,729,966 58,202,390 58,883,550 62,860,108 Public safety
139,528,323 141,711,640 131,355,271 117,037,898 110,804,240 Public works
69,250,901 70,951,265 69,351,107 64,938,672 68,152,942 Health and welfare
301,673,838 309,689,155 334,124,545 287,013,174 191,091,722 Other activities
250,208,494 243,282,980 222,115,446 239,536,892 256,182,164 Operating grants and contributions
29,020,526 34,407,375 22,578,476 22,312,264 29,696,488 C apital grants and contributions
860,616,624 871,772,381 837,727,235 789,722,450 718,787,664
Business-type activities:
C harges for services:
205,115,248 209,227,867 212,175,672 194,030,949 188,917,214 Public works - Sewer
4,598,439 3,277,159 4,074,576 7,062,744 13,974,206 C apital grants and contributions
209,713,687 212,505,026 216,250,248 201,093,693 202,891,420
1,070,330,311 1,084,277,407 1,053,977,483 990,816,143 921,679,084
Net (Expense) Revenue
(3,462,449,150) (3,302,814,409) (3,313,799,642) (3,304,019,639) (3,288,792,773) Governmental activities
26,636,874 37,572,898 41,404,573 31,881,206 38,935,513 Business-type activities
(3,435,812,276) (3,265,241,511) (3,272,395,069) (3,272,138,433) (3,249,857,260) Total Primary Government
Fiscal Year
Total program revenues, governmental activities
Total program revenues, business-type activities
Total program revenues, Primary Government
288
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 1.2 - Changes in Net Position (concluded) Last Ten Fiscal Years
2021 2020 2019 2018 2017
Governmental activities:
Taxes:
Real property 3,008,700,940$ 2,897,823,200 2,796,625,634 2,652,298,780 2,601,473,140
Personal property 432,944,446 443,280,543 421,706,327 412,251,446 403,229,884
Business licenses 180,132,797 180,120,661 170,065,024 167,766,061 160,711,944
Local sales and use 263,801,220 249,560,545 252,284,959 252,019,165 246,876,636
C onsumers utility 104,787,720 110,508,254 107,307,687 104,785,290 104,327,491
Recordation 42,977,172 31,251,909 23,536,391 24,623,858 25,401,332
Occupancy, tobacco, and other 20,532,652 28,604,036 35,898,475 35,969,332 36,206,695
Unrestricted grants and contributions 211,422,769 211,426,887 211,431,885 211,426,419 211,464,000
Revenue from the use of money (5,159,355) 11,675,030 23,541,351 9,008,419 6,653,142
Special item - - - - -
4,260,140,361 4,164,251,065 4,042,397,733 3,870,148,770 3,796,344,264
Business-type activities:
Revenue from the use of money 790,769$ 2,859,826 3,675,949 2,525,508 1,022,586
Special item - 9,898,401 (2)
- - -
790,769 12,758,227 3,675,949 2,525,508 1,022,586
4,260,931,130 4,177,009,292 4,046,073,682 3,872,674,278 3,797,366,850
Change in Net Position
Governmental activities 20,710,222 (110,818,702) 168,354,900 (26,206,014) 82,314,246
Business-type activities 58,207,740 61,987,233 48,263,854 47,641,572 56,865,009
Total Primary Government 78,917,962$ (48,831,469) 216,618,754 21,435,558 139,179,255
Source: Fairfax C ounty Department of Finance
Notes:
(1)
(2)
(3)
General Revenues and Other Changes in Net Position
Total general revenues and other changes in net position, Primary Government
Total general revenues and other changes in net position, business-type activities
Total general revenues and other changes in net position, governmental activities
In September 2010, Inova Health Systems transferred approximately 15 acres of land to the C ounty. In exchange for this land, Inova will provide the C ounty with an approximate 5 acre parcel, a $15 million cash payment, and a 10 year lease of 40,000 square feet within the new Mid C ounty C enter building. The special items in the governmental activities, represent the installments on the $15 million cash payment.
In July 2019, the Sewer System completed a sale of 0.5 MGD purchase capacity with the C ity of Manassas, reducing the Sewer System’s capacity entitlement in UOSA to 22.1 MGD or 41%. Per the agreement, the C ity of Manassas paid $8,220,297 in cash and has assumed the future debt service payments of $5,932,557 owed to UOSA with respect to the purchased capacity. As a result, a special item - Gain from sale of purchase capacity - of $9,898,401 was recognized.
Fiscal Year 2012 expenses restated due to the implementation of GASB statement 65.
Fiscal Year
289Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012
Governmental activities:
Taxes:
2,437,535,377 2,356,421,557 2,215,898,422 2,123,759,406 2,057,935,398 Real property
380,123,202 368,390,092 362,772,805 353,275,799 316,966,006 Personal property
158,380,380 154,681,661 158,619,113 158,768,484 155,480,677 Business licenses
249,278,074 247,734,220 261,193,846 265,029,666 257,770,918 Local sales and use
102,181,691 100,484,941 74,633,997 73,450,331 65,254,197 C onsumers utility
23,808,125 23,898,873 19,968,520 28,281,179 26,223,747 Recordation
34,115,345 33,775,982 31,296,981 32,694,178 33,360,801 Occupancy, tobacco, and other
211,423,471 211,423,648 230,920,811 209,291,717 218,287,716 Unrestricted grants and contributions
9,945,734 10,892,600 8,577,857 9,836,372 14,807,663 Revenue from the use of money
- - - 4,200,000 (1)
3,499,567 (1)
Special item
3,606,791,399 3,507,703,574 3,363,882,352 3,258,587,132 3,149,586,690
Business-type activities:
1,171,307 780,354 484,332 1,409,377 521,755 Revenue from the use of money
- - - - - Special item
1,171,307 780,354 484,332 1,409,377 521,755
3,607,962,706 3,508,483,928 3,364,366,684 3,259,996,509 3,150,108,445
Change in Net Position
144,342,249 204,889,165 50,082,710 (45,432,507) (139,206,083) Governmental activities
27,808,181 38,353,252 41,888,905 33,290,583 39,457,268 Business-type activities
172,150,430 243,242,417 91,971,615 (12,141,924) (99,748,815) Total Primary Government
Total general revenues and other changes in net position, Primary Government
General Revenues and Other Changes in Net Position
Total general revenues and other changes in net position, business-type activities
Total general revenues and other changes in net position, governmental activities
Fiscal Year
290
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 1.3 - Fund Balances, Governmental Funds Last Ten Fiscal Years
2021 2020 2019 2018 2017
General Fund:
Nonspendable 1,702,289$ 1,796,346 3,204,829 1,996,914 2,122,029
C ommitted 500,612,871 479,328,679 450,390,936 381,006,291 318,449,966
Assigned 36,762,530 41,102,387 27,852,920 29,257,275 29,810,689
Unassigned 145,469,633 85,591,972 53,361,158 66,563,791 71,072,769
Total general fund 684,547,323$ 607,819,384 534,809,843 478,824,271 421,455,453
All Other Governmental Funds:
Nonspendable 332,994$ 271,039 316,588 292,733 502,104
Restricted 763,480,427 755,102,339 887,566,576 869,259,392 875,478,273
C ommitted 259,808,373 231,835,504 247,760,895 237,969,839 217,556,600
Unassigned (16,718,127) - - - -
Total all other governmental funds 1,006,903,667$ 987,208,882 1,135,644,059 1,107,521,964 1,093,536,977
Source: Fairfax C ounty Department of Finance
Fiscal Year
291Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012
General Fund:
514,559 880,201 614,966 727,441 1,129,586 Nonspendable
271,363,898 237,696,440 220,628,054 216,879,261 213,718,785 C ommitted
31,420,067 33,264,339 29,406,539 34,841,916 29,080,155 Assigned
38,093,937 54,080,837 52,154,540 76,819,631 109,742,640 Unassigned
341,392,461 325,921,817 302,804,099 329,268,249 353,671,166 Total general fund
All Other Governmental Funds:
369,676 385,364 457,598 748,799 48,513,721 Nonspendable
822,378,966 806,622,981 779,237,002 565,814,956 569,803,909 Restricted
179,787,832 161,136,329 151,287,756 162,348,750 155,083,147 C ommitted
(20,854) - - (13,108,305) (2,604,408) Unassigned
1,002,515,620 968,144,674 930,982,356 715,804,200 770,796,369 Total all other governmental funds
Fiscal Year
292
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 1.4 - Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years
2021 2020 2019 2018 2017
Revenues
Taxes 4,048,525,783$ 3,940,896,963 3,809,188,577 3,649,017,783 3,576,143,127 Permits, privilege fees, and regulatory licenses 76,665,984 76,492,974 79,009,171 77,285,673 78,789,135
Intergovernmental 843,948,812 655,986,487 589,878,410 591,245,422 588,060,996
C harges for services 361,333,426 401,274,199 409,528,868 381,639,549 373,123,236
Fines and forfeitures 6,379,279 12,375,980 15,301,279 15,349,405 16,172,236 Revenue from the use of money and property 38,624,526 88,199,662 100,602,318 64,497,904 45,195,094
Recovered costs 17,700,423 14,104,830 15,771,173 18,643,367 14,851,978
C ontributions and other 27,213,405 11,712,204 18,498,183 8,795,789 2,822,015
Total revenues 5,420,391,638 5,201,043,299 5,037,777,979 4,806,474,892 4,695,157,817
Expenditures
C urrent: General government administration 211,763,383 199,349,480 169,486,397 156,249,168 160,694,938
Judicial administration 62,253,981 63,247,888 61,590,923 58,752,207 57,242,859
Public safety 802,618,717 799,071,319 775,354,938 747,806,458 737,122,371
Public works 207,017,475 200,931,845 197,579,765 197,520,108 212,209,456
Health and welfare 754,667,957 685,228,743 659,194,791 629,650,541 614,513,160
C ommunity development 342,620,638 369,540,318 293,591,266 288,415,827 243,788,329
Parks, recreation, and cultural 52,281,283 55,921,968 57,199,029 55,055,417 52,985,491
Intergovernmental:(1 )
C ommunity development 176,821,619 138,534,100 170,104,337 216,205,206 190,913,914
Parks, recreation, and cultural 66,283,648 74,448,119 69,637,352 68,701,097 63,077,723
Education 2,339,297,904 2,332,366,853 2,251,573,120 2,139,229,138 2,085,926,217
C apital outlay 199,624,409 207,717,122 166,061,186 185,888,125 176,169,811
Debt service:
Principal retirement 318,572,023 538,875,357 287,193,768 257,426,810 225,198,620
Interest and other charges 128,931,225 140,850,323 137,922,641 141,690,140 134,359,311
Total expenditures 5,662,754,262 5,806,083,435 5,296,489,513 5,142,590,242 4,954,202,200
(242,362,624) (605,040,136) (258,711,534) (336,115,350) (259,044,383)
Other Financing Sources (Uses)
Transfers in 734,745,924 675,792,885 673,647,732 696,481,666 610,776,813
Transfers out (750,239,673) (689,273,514) (685,341,165) (703,429,940) (618,264,035)
Bonds issued 290,739,140 344,836,070 248,084,893 283,089,727 339,653,241
Refunding bonds issued 355,392,049 198,259,059 75,964,692 37,408,232 -
Payments to escrow agent (293,126,253) - (44,553,144) (37,063,950) - C apital leases, installment purchases, and other 1,274,161 - 75,016,193 130,983,420 97,962,713
Total other financing sources, net 338,785,348 529,614,500 342,819,201 407,469,155 430,128,732
Special Item - - - - -
Net change in fund balances 96,422,724$ (75,425,636) 84,107,667 71,353,805 171,084,349
8.2% 12.1% 8.3% 8.1% 7.5%
Source: Fairfax C ounty Department of Finance
Note: (1)
Fiscal Year
Intergovernmental expenditures represent payments to component units, including Public Schools, the Park Authority, and the Economic Development Authority, and certain other government authorities.
Debt service as a percentage of noncapital expenditures
Deficiency of revenues under expenditures
293Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012
Revenues
3,384,696,039 3,289,084,031 3,119,946,744 3,036,288,822 2,907,905,803 Taxes
74,165,960 71,026,501 63,886,989 62,411,104 59,935,796 Permits, privilege fees, and regulatory licenses
565,562,122 559,309,630 609,843,183 554,886,927 500,063,928 Intergovernmental
367,293,019 387,763,613 351,597,808 337,660,061 323,151,828 C harges for services
14,675,893 16,437,938 16,817,313 16,842,952 17,230,369 Fines and forfeitures
39,360,901 31,080,667 31,544,136 34,239,413 38,113,332 Revenue from the use of money and property
15,369,266 20,109,855 16,141,935 14,076,599 20,294,568 Recovered costs
8,571,664 12,221,739 3,408,767 2,337,036 4,353,629 C ontributions and other
4,469,694,864 4,387,033,974 4,213,186,875 4,058,742,914 3,871,049,253 Total revenues
Expenditures
C urrent:
165,144,963 163,023,642 164,384,546 172,947,861 142,882,772 General government administration
55,337,889 53,183,629 50,760,212 45,751,873 50,071,223 Judicial administration
711,044,003 699,203,895 690,063,408 639,655,183 594,264,731 Public safety
188,198,288 199,205,144 202,904,525 198,203,970 194,764,262 Public works
598,715,227 568,675,553 553,250,576 542,814,370 557,655,637 Health and welfare
226,958,426 230,287,575 193,976,264 192,000,269 185,214,980 C ommunity development
52,721,664 50,642,925 51,709,656 54,270,433 51,248,180 Parks, recreation, and cultural
Intergovernmental: (1 )
134,236,475 111,031,149 146,812,410 178,024,166 195,414,873 C ommunity development
56,967,246 57,848,921 52,381,153 52,494,525 56,373,285 Parks, recreation, and cultural
1,998,723,980 1,936,673,334 1,878,460,936 1,843,611,090 1,769,700,781 Education
179,067,050 160,667,922 224,900,077 173,558,840 215,858,520 C apital outlay
Debt service:
386,099,648 280,109,469 204,975,519 234,615,416 199,199,649 Principal retirement
156,503,054 137,140,834 132,973,357 127,353,770 122,995,432 Interest and other charges
4,909,717,913 4,647,693,992 4,547,552,639 4,455,301,766 4,335,644,325 Total expenditures
(440,023,049) (260,660,018) (334,365,764) (396,558,852) (464,595,072)
Other Financing Sources (Uses)
587,755,580 555,297,170 581,375,596 525,335,599 547,558,731 Transfers in
(594,655,237) (581,266,174) (587,133,301) (536,354,136) (551,771,067) Transfers out
450,743,979 257,188,745 480,886,115 298,776,517 434,761,982 Bonds issued
297,981,112 311,478,707 108,080,978 171,151,301 297,015,139 Refunding bonds issued
(338,948,636) (270,710,041) (107,703,910) (145,945,515) (295,465,222) Payments to escrow agent
86,987,841 48,951,647 47,574,292 - - C apital leases, installment purchases, and other
489,864,639 320,940,054 523,079,770 312,963,766 432,099,563 Total other financing sources, net
- - - 4,200,000 3,499,567 Special Item
49,841,590 60,280,036 188,714,006 (79,395,086) (28,995,942) Net change in fund balances
11.5% 9.3% 7.8% 8.5% 7.8% Debt service as a percentage of noncapital expenditures
Deficiency of revenues under expenditures
Fiscal Year
294
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 2.1 - Assessed Value and Actual Value of Taxable Real Property (1) Last Ten Fiscal Years
2.0 - Revenue capacity information is intended to assist users in understanding and assessing the factors affecting the County’s ability to generate its own-source revenues. There are four tables presented in this section.
Fiscal Year Residential
(000s) C ommercial
(000s) Tax-Exempt
(000s)
2021 $ 193,599,518 71,194,127 1,146,136 265,939,781 19,624,810 1.150
2020 187,371,027 67,820,928 1,088,148 256,280,103 18,948,829 1.150
2019 181,857,973 64,476,359 977,297 247,311,629 18,276,651 1.150
2018 177,009,973 60,781,189 969,415 238,760,577 17,878,071 1.130
2017 175,187,489 58,185,653 899,206 234,272,348 17,485,097 1.130
2016 171,409,697 55,199,289 892,919 227,501,905 16,791,394 1.090
2015 164,977,246 54,044,028 863,583 219,884,857 16,421,055 1.090
2014 154,104,662 52,968,482 876,142 207,949,286 15,866,827 1.085
2013 148,296,431 51,966,913 875,704 201,139,048 15,564,645 1.075
2012 146,877,992 47,040,882 839,163 194,758,037 14,689,068 1.070
Notes: (1 )
(2 ) Rates are per $100 of assessed value, which is determined as of January 1 of the prior calendar year.
Total Direct
Tax Rate (2 )
Total Taxable Assessed Value
(000s)
Public Service C orporations
(000s)
Assessed value is the estimated actual value of taxable property and is shown for each period for which taxes are levied. Residential and C ommercial properties are assessed as of January 1 and the properties of Public Service C orporations are assessed in October each year at the estimated fair market value of all land and improvements, with the resulting taxes being payable in the subsequent fiscal year.
Source: Fairfax C ounty Department of Tax Administration
295Statistical Section (unaudited)
Statistical Section (unaudited)
County of Fairfax, VA TABLE 2.2 - Direct and Overlapping Real Property Tax Rates (1) Last Ten Fiscal Years
Fiscal Year
2021 $ 1.150 0.265 0.2250
2020 1.150 0.265 0.2250
2019 1.150 0.265 0.2250
2018 1.130 0.265 0.2250
2017 1.130 0.265 0.2250
2016 1.090 0.265 0.2250
2015 1.090 0.265 0.2288
2014 1.085 0.265 0.2288
2013 1.075 0.265 0.2421 2012 1.070 0.270 0.2420
Sources: Fairfax C ounty Department of Tax Administration; Town of Herndon; Town of Vienna
Notes: (1 )
(2 )
(3 )
Virginia law limits the annual tax increase to 2% unless public hearings are held. The C ounty Board of Supervisors holds public hearings annually in conjunction with the budget process.
These overlapping rates only apply to property owners within these Towns, which lie entirely within the C ounty.
Town of Vienna
Overlapping Rates (3)
Town of Herndon
C ounty Direct
Rate (2)
Rates are per $100 of assessed value, which is determined as of January 1 of the prior calendar year.
296
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 2.3 - Principal Real Property Taxpayers Current Year and Nine Years Ago
County of Fairfax, VA TABLE 2.4 - Real Property Tax Levies and Collections Last Ten Fiscal Years
Rank Taxpayer
1 Tysons C orner Property Holdings LLC 1,743,486,950$ 0.66 %
2 C apital One Bank 838,869,160 0.32
3 PR Springfield Town C enter LLC 480,692,130 0.18
4 Fairfax C ompany of Virginia LLC 430,538,000 0.16
5 PS Business Parks LP 427,402,530 0.16
6 Reston Town C enter Property LLC 425,968,780 0.16
7 Washington Gas Light C o 400,179,089 0.15
8 C amden Summit Partnership LP 383,359,160 0.14
9 Tysons Galleria LLC 378,044,450 0.14
10 Exxon Mobile Foundation 373,021,100 0.14
Totals 5,881,561,349$ 2.21 %
Source: Fairfax C ounty Department of Tax Administration Notes: (1) Assessed values are as of January 1 of the prior calendar year. (2) Total taxable assessed value for fiscal year 2021 is $264,793,644,730. Assessment excludes Public Service C orporations. Total taxable assessed value for fiscal year 2012 is $193,918,874,000. Assessment excludes Public Service C orporations.
Fiscal Year 2021
Taxable Assessed
Value (1)
Pct. of Total Taxable
Assessed
Value (2)
Fiscal Year Amount Total Adjusted
Levy
2021 $ 3,022,677,499 3,012,104,497 99.65 % - 3,022,677,499
2020 2,911,713,956 2,903,982,237 99.73 (1,104,417) 2,910,609,539
2019 2,810,924,242 2,803,550,146 99.74 (1,636,251) 2,809,287,991
2018 2,665,889,198 2,657,434,969 99.68 (1,484,526) 2,664,404,672
2017 2,614,861,824 2,607,565,912 99.72 (1,644,801) 2,613,217,023
2016 2,450,462,549 2,443,167,137 99.70 (1,518,985) 2,448,943,564
2015 2,367,484,875 2,360,588,850 99.71 (1,611,634) 2,365,873,241
2014 2,226,943,153 2,220,155,139 99.70 (1,498,067) 2,225,445,086
2013 2,132,072,324 2,124,865,909 99.66 (1,803,587) 2,130,268,737
2012 2,055,354,905 2,048,202,774 99.65 (1,449,752) 2,053,905,153
Source: Fairfax C ounty Department of Tax Administration
Notes:
Taxes Levied for the Fiscal Year
Original Levy (1) Pct. of
Original Levy
C ollected within the Fiscal Year of the Levy Adjustments to
Original Levy in Subsequent
Years (2)
(1) Taxes are levied on assessed property values as of January 1 of prior calendar year, i.e. FY2021, taxes are levied for calendar year 2020.
(2) Adjustments to the original levy include exonerations, tax relief, and supplemental assessments.
297Statistical Section (unaudited)
Statistical Section (unaudited)
Rank Taxpayer
1 Tysons C orner Property Holdings LLC 976,928,710$ 0.50 %
2 C ESC Skyline LLC 567,399,410 0.29
3 Fairfax C ompany of Virginia LLC 330,603,500 0.17
4 Federal Home Loan Mortgage C orp 327,747,110 0.17
5 Summit Properties Partnership LP 273,016,670 0.14
6 Brandywine Acquisition Partners LP 267,481,930 0.14
7 Reston Town C enter Property LLC 266,485,030 0.14
8 Washington Gas Light C o 253,337,717 0.13
9 C ampus Point Realty C orp 239,798,250 0.12
10 SRI Seven Fair Lakes LLC 238,281,740 0.12
Totals 3,741,080,067$ 1.92 %
Fiscal Year 2012
Taxable Assessed
Value (1)
Pct. of Total Taxable
Assessed
Value (2)
Amount
- 3,012,104,497 99.65 %
4,350,030 2,908,332,267 99.92
4,909,048 2,808,459,194 99.97
6,528,485 2,663,963,454 99.98
5,506,544 2,613,072,456 99.99
5,668,993 2,448,836,130 100.00
5,232,710 2,365,821,560 100.00
5,244,082 2,225,399,221 100.00
5,357,570 2,130,223,479 100.00
5,679,047 2,053,881,821 100.00
(3) This table includes real estate taxes only and does not include penalty and interest. There is a difference in the collection rate reported here and the rate reported in the C ounty's Budget Overview document resulting from a difference in accounting basis. Taxes receivable reflects only the actual levy and collections and does not include the accrual of taxes.
Total C ollections to Date C ollections in Subsequent
Years
Pct. of
Adjusted Levy (3)
298
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 3.1 - Ratios of Outstanding Debt by Type Last Ten Fiscal Years
3.0 - Debt capacity information is intended to assist users in understanding and assessing the County’s debt burden and its ability to issue additional debt. There are five tables presented in this section.
Fiscal Year
2021 $ 2,573,717 362,750 357,837 450,383 2,993
2020 2,503,048 392,665 384,497 439,073 7,526
2019 2,480,827 429,761 409,108 430,071 13,134
2018 2,474,659 444,433 443,757 352,861 18,535
2017 2,450,071 458,552 445,445 236,239 21,504
2016 2,404,587 391,517 470,579 145,996 25,938
2015 2,367,801 406,207 495,338 75,736 23,218
2014 2,311,626 413,632 520,906 53,883 24,323
2013 2,226,884 420,949 348,712 32,713 3,478
2012 2,017,435 - 716,700 35,433 11,234
Source: Fairfax C ounty Department of Finance
Notes:
General Obligation Bonds
(000s)
Lease Revenue
Bonds (2) (5)
(000s) Notes (000s)
Revenue Bonds Revenue-
Backed Bonds (5)
(000s)
Governmental Activities (1 )
C apital Leases (000s)
(1) Prior to fiscal year 2013, amounts for bonds are reported net, excluding premiums and/or discounts and deferred amounts on refundings. See Note J in Notes to the Financial Statements for additional information regarding the C ounty's outstanding debt.
(2) Lease revenue bonds have been issued by C ounty component units, using receipt of lease payments as the revenue source. All outstanding lease revenue bonds have been identified as conduit debt of the county and the associated lease payments are made using general government resources.
(3) See Table 4.1 for personal income data. The percentage is calculated using personal income data for the prior calendar year.
(4) See Table 4.1 for population data. The ratio is calculated using population data for the prior calendar year.
(5) In fiscal year 2012, the revenue-backed and lease revenue bonds were consolidated in lease revenue bonds. The outstanding debt for revenue-backed bonds in fiscal year is $364,595. The two types of bonds are reported separately starting in fiscal year 2013.
299Statistical Section (unaudited)
Statistical Section (unaudited)
3,554 835,345 4,586,579 4.544 % 3,914
4,013 610,541 4,341,363 4.513 3,720
7,385 620,111 4,390,397 4.859 3,808
8,088 649,572 4,391,905 5.058 3,843
8,783 676,804 4,297,398 5.037 3,778
9,471 600,266 4,048,354 4.960 3,559
10,152 619,150 3,997,602 4.936 3,535
10,826 644,967 3,980,163 4.915 3,519
11,493 666,477 3,710,706 5.168 3,558
12,155 552,254 3,345,211 4.627 3,104
Business-type Activities (1)
Revenue Bonds (000s)
Pct. of Personal
Income (3) Debt Per C apita (4)
Total Primary Government
(000s)
HUD Section 108 Loan (000s)
300
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 3.2 - Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years
Fiscal Year
2021 2,573,717$ 357,837 2,931,554 1.10 % 2,502
2020 2,503,048 384,497 2,887,545 1.13 2,474
2019 2,480,827 409,108 2,889,935 1.17 2,507
2018 2,474,659 443,757 2,918,416 1.22 2,554
2017 2,450,071 445,445 2,895,516 1.24 2,543
2016 2,404,587 470,579 2,875,166 1.26 2,517
2015 2,367,801 495,338 2,863,139 1.30 2,517
2014 2,311,626 520,906 2,832,532 1.36 2,505
2013 2,226,884 348,712 2,575,596 1.28 2,303
2012 2,017,435 716,700 2,734,135 1.40 2,484
Source: Fairfax C ounty Department of Finance
Notes: (1) Prior to fiscal year 2013, amounts for bonds are reported net, excluding premiums and/or discounts and deferred amounts on refundings. See Note J in Notes to the Financial Statements for additional information regarding the C ounty's outstanding debt.
(2) Lease revenue bonds have been issued by C ounty component units, using receipt of lease payments as the revenue source. All outstanding lease revenue bonds have been identified as conduit debt of the county and the associated lease payments are made using general government resources.
(3) See Table 4.1 for actual taxable value of real property data. The percentage is calculated using values for each fiscal year for which levied.
(4) See Table 4.1 for population data. The ratio is calculated using population data for the prior calendar year.
(5) In fiscal year 2012, the revenue-backed and lease revenue bonds were consolidated in lease revenue bonds. The outstanding debt for revenue-backed bonds in fiscal year is $364,595. The two types of bonds are reported separately starting in fiscal year 2013.
Lease Revenue
Bonds (2)(5)
(000s) Debt Per C apita (4)
General Bonded Debt Outstanding (1)
Pct. of Actual Taxable Value
of Real Property (3)
Total (000s)
General Obligation Bonds
(000s)
301Statistical Section (unaudited)
Statistical Section (unaudited)
County of Fairfax, VA TABLE 3.3 - Direct and Overlapping Governmental Activities Debt As of June 30, 2021
Overlapping debt :
Town of Herndon
General obligation bonds 21,945$ 100.0 % 21,945$
Total overlapping debt, Town of Herndon 21,945
Town of Vienna
General obligation bonds 56,971 100.0 56,971
56,971
Total overlapping debt 78,916
County direct debt: (3)
General obligation bonds 2,573,717
Revenue-Backed bonds 362,750
Lease Revenue bonds 357,837
Notes 450,383
C apital leases 2,993
HUD Section 108 loans 3,554
Total direct debt 3,751,234
Total direct and overlapping debt 3,830,150$
Sources: Fairfax C ounty Department of Finance; Town of Herndon; Town of Vienna
Notes: (1) Amounts for bonds are reported net of premiums and/or discounts.
(2)
(3) The C ounty's direct debt is also presented in Table 3.1.
Percentage Applicable (2)
Debt Outstanding
(000s)
Share of Overlapping Debt
(000s) (1)
The percentage of overlapping debt applicable is determined using taxable assessed property values. The Towns of Herndon and Vienna are situated entirely within the geographic boundaries of the C ounty, and their residents and businesses bear the governmental activities debt burdens of both the C ounty and their respective Towns.
Total overlapping debt, Town of Vienna
302
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 3.4 - Self-Imposed Debt Margin Information Last Ten Fiscal Years
2021 2020 2019 2018 2017
(a) Debt limit (2) 8,518,781$ 8,244,479 7,955,879 7,687,822 7,551,723
Total debt applicable to limit (3) 2,931,554 2,887,545 2,889,935 2,918,416 2,895,516
Self-imposed debt margin 5,587,227$ 5,356,934 5,065,944 4,769,406 4,656,207
Total debt applicable to limit as
a percentage of debt limit 34.41% 35.02% 36.32% 37.96% 38.34%
Total debt applicable to limit as
a percentage of assessed value 1.03% 1.05% 1.09% 1.14% 1.15%
Debt Margin Calculation for Fiscal Year 2021:
Assessed value (2) 283,959,357$
Debt limit (3% of assessed value) 8,518,781
Debt applicable to limit: (3)
General obligation bonds (1) 2,573,716
Lease Revenue bonds (1) 357,838
Total debt applicable to limit 2,931,554
Self-imposed debt margin 5,587,227$
2021 2020 2019 2018 2017
(b) Debt service limit 454,590$ 444,986 430,048 411,255 400,584
325,402 332,257 345,310 337,077 313,389
Self-imposed debt service margin 129,188$ 112,729 84,738 74,178 87,195
Total debt service requirements applicable to limit as a percentage of the debt service limit 71.58% 74.67% 80.30% 81.96% 78.23%
Total debt service requirements applicable to limit as a percentage of annual General Fund expenditures and transfers out 7.16% 7.47% 8.03% 8.20% 7.82%
Source: Fairfax C ounty Department of Finance
Notes: (1)
(2)
(3)
(4)
The C ommonwealth of Virginia does not impose a legal limit on the amount of long-term indebtedness that the C ounty can at any time incur or have outstanding. The Board of Supervisors, however, has imposed limits which provide that the C ounty's (a) long-term general bonded debt should not exceed three percent of the total assessed value of taxable real and personal property in the C ounty and (b) the annual debt service should not exceed ten percent of the annual general fund expenditures and transfers out, excluding capital leases and installment purchases in the year initiated. Relevant information pertaining to these self-imposed debt margins is provided below.
Fiscal Year (000s)
Total debt service requirements applicable to limit (4)
Fiscal Year (000s)
Amounts for bonds are reported net of premiums and/or discounts.
See Table 2.1 for assessed taxable value of real property data. The amounts used to determine debt limits include values for each period for which levied and include both real and personal property.
Debt service requirements exclude "bond issuance costs and other" expenditures recorded in the debt service funds and payments to refunded escrow agent (current refundings) of $121.38 million in 2020, $30.74 million in FY2019, $154.54 million in FY 2016, and $39.58 million in FY2015.
See Table 3.2 for debt applicable to limit amounts.
303Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012
7,331,913 7,092,110 6,731,089 6,513,757 6,320,578 Debt limit (2)
2,875,166 2,863,139 2,832,532 2,575,596 2,734,135 Total debt applicable to limit (3)
4,456,747 4,228,971 3,898,557 3,938,161 3,586,443 Self-imposed debt margin
Total debt applicable to limit as
39.21% 40.37% 42.08% 39.54% 43.26% a percentage of debt limit
Total debt applicable to limit as
1.18% 1.19% 1.26% 1.19% 1.30% a percentage of assessed value
2016 2015 2014 2013 2012
386,066 372,962 363,784 353,329 341,854 Debt service limit
323,859 313,969 295,451 289,714 288,302
62,207 58,993 68,333 63,615 53,552 Self-imposed debt service margin
Total debt service requirements applicable
83.89% 84.18% 81.22% 82.00% 84.33% to limit as a percentage of the debt service limit
Total debt service requirements applicable to limit as
8.39% 8.42% 8.12% 8.20% 8.43% a percentage of annual General Fund expenditures and transfers
Fiscal Year (000s)
Total debt service requirements applicable to limit (4)
Fiscal Year (000s)
304
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 3.5 - Pledged Revenue Coverage for the Integrated Sewer System Last Ten Fiscal Years
Fiscal Year Principal (000s)
Interest (000s)
Total (000s)
2021 251,953$ 109,195 142,758 29,088 20,886 49,974 2.86 %
2020 242,894 107,460 135,434 27,475 22,214 49,689 2.73
2019 236,111 101,359 134,752 26,898 23,131 50,029 2.69
2018 228,259 100,996 127,263 21,192 22,152 43,344 2.94
2017 221,982 94,166 127,816 23,953 19,178 43,131 2.96
2016 206,287 92,453 113,834 23,070 24,046 47,116 2.42
2015 210,057 92,312 117,745 22,429 24,335 46,764 2.52
2014 212,782 91,111 121,671 20,872 27,125 47,997 2.53
2013 195,628 86,441 109,187 17,217 27,091 44,308 2.46
2012 189,447 85,455 103,992 16,445 25,418 41,863 2.48
Source: Fairfax C ounty Department of Finance
Notes: (1 )
(2 )
(3 )
Debt Service (3 )Gross (1 )
Revenues (000s)
Operating (2 )
Expenses (000s)
Net Available Revenue (000s) C overage
Gross revenues include all revenues, except the amortization of deferred gain on bond refundings and gains on disposals of capital assets.
Operating expenses do not include depreciation and amortization.
See Note J in the Notes to the Financial Statements for detailed information regarding the sewer revenue bonds issued by the Integrated Sewer System and Note K for the System's share of the revenue bonds issued by the Upper Occoquan Service Authority.
305Statistical Section (unaudited)
Statistical Section (unaudited)
County of Fairfax, VA TABLE 4.1 - Demographic and Economic Statistics Last Ten Calendar Years
4.0 - Demographic and economic information is intended to assist users in understanding the socioeconomic environment within which a government operates and to provide information that facilitates comparisons of financial statement information over time and among governments. There are two tables presented in this section.
Population (1)
2020 1,171,848 100,944,159 86,141 38.4 61.6 % 188,355 5.6 %
2019 1,166,965 96,205,762 82,441 38.4 61.1 187,474 2.3
2018 1,152,873 90,357,574 78,376 37.9 60.7 188,403 2.4
2017 1,142,888 86,834,344 75,978 38.1 60.3 187,484 3.0
2016 1,138,652 85,311,224 74,923 38.0 59.9 185,979 3.2
2015 1,142,234 85,675,546 75,007 37.7 59.2 185,914 3.1
2014 1,137,538 81,620,627 71,752 37.6 58.6 183,895 3.5
2013 1,130,924 80,982,075 71,607 37.3 58.2 181,259 3.7
2012 1,118,602 77,012,392 68,847 37.6 59.3 177,918 4.4
2011 1,100,692 71,145,429 64,637 37.6 58.0 174,933 4.7
Notes: (1 ) Population data is obtained from Fairfax C ounty Department of Management and Budget.
(4 ) Public school enrollment is obtained from Fairfax C ounty Public Schools.
(2 ) Personal income data is obtained from the Bureau of Economic Analysis, U.S. Department of C ommerce and includes the C ities of Fairfax and Falls C hurch. Data for only Fairfax C ounty is not available; however, it is believed that the inclusion of these C ities does not significantly affect the C ounty's data. Fairfax C ounty data for 2020 is estimated using percent change in per capita personal income from 2019.
(3 ) Median age and educational attainment information are obtained from the U.S. C ensus Bureau's American Fact Finder.
(5 ) Unemployment rates are obtained from Fairfax C ounty Department of Management and Budget's Economic Analysis.
Unemployment Rate (5)
C alendar Year
Personal Income (2)
(000s)
Median Age (3)
(yrs)
Pct. of People > 25 Years Old
with a Bachelor's Degree (3)
Per C apita Personal
Income (2) Public School Enrollment (4)
306
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 4.2 - Principal Employers Current Year and Nine Years Ago
Pct. of Total Pct. of Total C ounty
Rank Employment (3) Employment (3)
Federal Government 26,543 1 4.30 % 23,361 2 4.02 %
Fairfax C ounty Public Schools 25,389 2 4.12 23,534 1 4.05
Fairfax C ounty Government 12,128 3 1.97 12,070 3 2.08
Inova Health System 10,000-12,000 4 1.78 7,000-10,000 5 1.46
George Mason University 5,000-9,999 5 1.22 4,000-6,999 7 0.95
Booz-Allen Hamilton 5,000-9,999 6 1.22 7,000-10,000 4 1.46
Amazon 5,000-9,999 7 1.22
Federal Home Loan Mortgage 5,000-9,999 8 1.22 4,000-6,999 8 0.95
Science Applications International C orporation (4) 5,000-9,999 9 1.22 4,000-6,999 6 0.95
C apital One 5,000-9,999 10 1.22
Northrup Grumman 4,000-6,999 9 0.95
Mitre 1,000-3,999 10 0.43
19.49 % 17.30 % Notes: (1 )
(2 )
(3 )
(4 )
Fiscal Year 2021 (1 ) Fiscal Year 2012 (1 )
RankEmployer Number of Employees
Number of Employees (2)
C ounty
Employment estimates for separate facilities of the same firm have been combined to create company totals. Employment ranges for the private sector are given to ensure confidentiality.
Percentages are based on the midpoint of the employment range. Average total County employment for fiscal year 2021 is estimated at 616,633 based on Virginia Employment C ommission (VEC). Average total County employment for fiscal year 2012 was estimated at 581,547.
Employment information for fiscal year 2021, excluding data for Fairfax County Government and Fairfax County Public Schools, is from the 1st quarter of calendar year 2019 VEC and Fairfax County's Economic Development Authority. Employment information for fiscal year 2012 is as was presented 2012 Fairfax County ACFR.
Science Applications International Corporation employment reported prior to the September 2013 split into two independent companies (SAIC and Leidos).
307Statistical Section (unaudited)
Statistical Section (unaudited)
308
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
5.0 - Operating information is intended to provide contextual information about a govern- ment’s operations and resources to assist readers in using financial statement information to understand and assess a government’s economic condition. There are three tables presented in this section.
County of Fairfax, VA TABLE 5.1 - Full Time Equivalent County Government Employees by Function Last Ten Fiscal Years
Function/Program 2021 2020 2019 2018 2017
Primary Government:
General government administration 1,206.0 1,237.0 1,227.0 1,201.0 1,190.0
Judicial administration 383.0 378.0 360.0 362.0 377.0
Public safety 4,349.0 4,429.0 4,437.0 4,367.0 4,385.0
Public works 1,074.0 1,063.0 1,043.0 1,066.0 1,069.0
Health and welfare 3,729.0 3,510.0 3,550.0 3,526.0 3,366.0
C ommunity development 516.0 531.0 514.0 543.0 524.0
Parks, recreation, and cultural 297.0 470.0 307.0 307.0 470.0
Total 11,554.0 11,618.0 11,438.0 11,372.0 11,381.0
C omponent Units:
Public Schools:
Education 25,389.0 25,041.0 24,936.0 24,715.0 24,688.0
Redevelopment and Housing Authority:
C ommunity development 160.0 189.0 172.0 187.0 196.0
Park Authority:
Parks, recreation, and cultural 414.0 417.0 424.0 437.0 447.0
Sources: Fairfax C ounty Department of Management and Budget; Fairfax C ounty Department of Human Resources; Fairfax C ounty Public Schools
*In FY2019 an improvement was made to the method used to identify positions by function which better represents actual staffing levels. The table was restated for fiscal years 2018 and 2017 to also reflect this improvement.
Full-Time Equivalent Employees as of June 30 * **
309Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012 Function/Program
Primary Government:
2,259.0 2,258.0 2,251.0 2,254.0 2,257.0 General government administration
398.0 394.0 391.0 392.0 390.0 Judicial administration
4,398.0 4,390.0 4,318.0 4,330.0 4,335.0 Public safety
551.0 538.0 520.0 511.0 481.0 Public works
3,464.0 3,475.0 3,490.0 3,571.0 3,571.0 Health and welfare
529.0 516.0 513.0 481.0 491.0 C ommunity development
736.0 755.0 757.0 763.0 753.0 Parks, recreation, and cultural
12,335.0 12,326.0 12,240.0 12,302.0 12,278.0 Total
C omponent Units:
Public Schools:
24,581.0 24,181.0 24,590.0 24,232.0 23,534.0 Education
Redevelopment and Housing Authority:
226.0 233.0 233.0 230.0 230.0 C ommunity development
Park Authority:
582.0 595.0 600.0 598.0 605.0 Parks, recreation, and cultural
Sources: Fairfax C ounty Department of Management and Budget; Fairfax C ounty Department of Human Resources; Fairfax C ounty Public Schools
*In FY2019 an improvement was made to the method used to identify positions by function which better represents actual staffing levels. The table was restated for fiscal years 2018 and 2017 to also reflect this improvement.
Full-Time Equivalent Employees as of June 30
310
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 5.2 - Operating Indicators by Function Last Ten Fiscal Years
Function/Program 2021 2020 2019 2018 2017
Primary Government:
General government administration:
Real property parcels assessed 363,157 349,958 360,579 360,954 360,617
Personal property vehicles assessed 954,075 993,452 994,469 994,746 986,610
Businesses licensed 47,392 48,561 49,071 49,071 49,408
Best qualified job applicants forwarded to departments 14,972 15,687 17,307 15,544 16,806
Judicial administration:
C ases filed in General District C ourt 118,662 255,752 315,048 297,213 302,665 Booking transactions 19,445 28,042 34,599 36,435 36,820
General District C ourt probation program new adult enrollment 730 651 1,036 1,290 1,091
Public safety:
Police: Recruits graduating
C riminal Justice Academy (3 ) 67 67 54 72 72
Total cases assigned (4 ) 2,478 2,625 2,854 4,181 30
Total cases cleared (4 ) 1,930 1,354 1,940 3,545 2,329
Parking tickets issued 24,874 43,276 52,783 52,111 46,886
Sheriff: C ourt cases heard annually 137,042 249,063 436,666 474,377 499,583
Average daily Adult Detention C enter inmate population 588 689 964 994 1,029
Fire and rescue:
Fire investigations conducted 205 291 287 264 335
Fire inspection activities conducted 37,445 23,936 20,206 16,659 19,981
EMS incidents 74,103 75,055 76,877 75,123 75,019
Animals impounded 2,856 3,858 4,467 4,416 4,311
Public works:
Gross square feet of facilities maintained 11,842,769 11,764,583 11,764,583 11,105,648 10,838,046
Tons of C ounty waste disposed 723,078 694,634 753,625 731,706 735,287
Total tons recycled 466,793 422,286 494,553 494,734 611,171 Total average daily wastewater flow treated (million gallons) 100.7 95.4 112.4 95.8 90.5
Health and welfare: Persons served through C ommunity Services Board
programs: (1 )
Mental Health Services 6,181 6,932 7,348 6,803 6,748
Substance Abuse Services 1,005 1,529 1,568 1,523 1,600
Developmental Services 2,330 2,479 2,348 2,231 2,104
Infant Toddler C onnection 3,800 3,660 4,132 3,889 3,642
Emergency and Ancillary Services 17,874 17,707 18,770 17,749 16,587
Home and C ongregate Meals for Older Adults (5 ) 583,743 539,776 504,447 512,881 519,959
Food Stamp applications (SNAP) 23,605 21,568 17,924 19,576 21,260
Medicaid/FAMIS Applications 45,166 48,516 43,719 32,544 35,061
C hild immunization vaccines given at clinics 11,317 30,642 31,816 28,277 37,659
Fiscal Year
311Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012 Function/Program
Primary Government:
General government administration:
360,495 359,265 359,099 358,555 358,489 Real property parcels assessed
980,114 979,836 979,424 970,361 963,595 Personal property vehicles assessed
49,309 49,063 48,202 47,454 46,919 Businesses licensed
17,177 17,374 15,577 21,828 22,466 Best qualified job applicants forwarded to departments
Judicial administration:
310,879 316,727 313,055 310,883 313,369 C ases filed in General District C ourt 37,537 40,248 43,543 43,857 42,290 Booking transactions
1,127 1,168 1,252 1,286 755 General District C ourt probation program new adult enrollment
Public safety:
Police:
104 72 49 31 28
Recruits graduating
C riminal Justice Academy (3 )
6,725 9,166 11,559 12,686 12,549 Total cases assigned (4 )
2,141 3,590 4,742 5,722 5,234 Total cases cleared (4 )
45,775 48,645 59,097 52,182 58,550 Parking tickets issued
Sheriff: 451,837 420,081 510,857 490,492 478,726 C ourt cases heard annually
1,038 1,062 1,228 1,220 1,257 Average daily Adult Detention C enter inmate population
Fire and rescue:
350 386 283 329 260 Fire investigations conducted
20,520 20,943 21,920 18,024 17,917 Fire inspection activities conducted
72,037 69,486 66,550 67,243 67,073 EMS incidents
4,354 4,553 4,090 3,228 4,323 Animals impounded
Public works:
10,799,658 10,652,102 8,590,360 8,688,860 8,613,111 Gross square feet of facilities maintained
727,734 709,936 700,170 724,606 796,472 Tons of C ounty waste disposed
520,628 484,783 518,575 647,456 571,116 Total tons recycled
96.2 102.9 104.2 98 102.7 Total average daily wastewater flow treated (million gallons)
Health and welfare: Persons served through C ommunity Services Board
programs: (1 )
6,884 7,082 6,619 6,874 6,736 Intellectual Disability Services (IDS)
1,658 2,406 2,602 2,944 3,281 Alcohol and drug services
1,969 1,901 1,910 1,645 2,087 Intellectual disability
3,559 3,372 3,164 2,975 2,803 Infant Toddler C onnection
15,154 14,245 13,442 13,248 11,549 Emergency and Ancillary Services
468,022 433,170 443,865 451,945 479,555 Home and C ongregate Meals for Older Adults (5 )
18,469 18,466 17,416 18,725 17,604 Food Stamp applications (SNAP)
39,361 31,609 17,472 22,161 20,544 Medicaid/FAMIS applications
31,559 34,417 30,590 27,849 29,365 C hild immunization vaccines given at clinics
(continued)
Fiscal Year
312
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 5.2 - Operating Indicators by Function (concluded) Last Ten Fiscal Years
Function/Program 2021 2020 2019 2018 2017
Community development: Building inspections 180,492 181,749 168,008 159,090 158,289
Building permits issued 71,429 64,464 66,421 63,224 59,814
Zoning permits processed 21,001 16,011 17,275 19,459 19,990
Fairfax C onnector bus passengers 4,566,013 6,783,112 8,334,616 8,312,983 8,631,906
Parks, recreation, and cultural:
Senior C enter attendance 41,294 269,535 380,355 361,908 361,270
Teen C enter attendance 1,044 64,992 67,104 70,486 74,401
C ommunity C enter attendance 21,780 301,374 349,204 330,152 327,950
Library visits 1,197,867 3,143,196 4,578,666 4,532,886 4,633,327
C irculation of all library materials 10,091,979 8,916,842 10,968,477 11,175,980 11,405,157
C omponent Units:
Public Schools: C ombined SAT scores (6) 1,201 1,211 1,218 1,213 1,187
Number of lunches served daily 17,273 81,137 80,473 80,374 80,660
Number of breakfasts served daily 16,271 29,099 29,506 26,591 22,261
Student enrollment 179,748 188,355 187,474 188,403 187,484
Special education enrollment 26,468 27,644 27,107 25,779 25,697
ESOL enrollment 33,325 36,325 35,541 27,572 27,896
Redevelopment and Housing Authority: Residents housed through subsidized rental programs:
Federal Public Housing (7) - - - - 2,651
Federal Housing C hoice Vouchers (7) 12,723 12,241 12,809 12,380 9,541 C ounty Rental Program-multifamily and seniors 5,199 6,665 6,110 6,198 5,789
Homes sold in First-Time Homebuyer Program 47 43 31 27 10
Park Authority:
REC C enter attendance 563,593 1,307,811 1,646,581 1,756,187 1,837,807
Golf course rounds 347,965 231,054 226,602 235,287 259,094
Visits to natural, cultural, historic and interpretive
sites (2 ) 1,207,791 1,125,462 1,609,067 1,798,157 1,997,855
C lass, camp, and program participation 89,085 241,627 270,003 170,206 176,561
Notes: (1 )
(2 ) Prior to FY2014, the visitor numbers included only counted attendance for program visitation and outreach.
(3 ) The increase in recruits graduating in FY2015 is due to increased academy class size and number of classes.
(4 ) The data reflects cases assigned for further investigation and assigned cases closed or cleared.
(5 )
(6 )
(7 )
Fiscal Year
In March 2016, the C ollege Board implemented a new grading scale from the previous 600 to 2400 to the new scale of 400 to 1600.
In FY 2018, Federal Public Housing units were converted to project-based voucher units under the federal Rental Assistance Demonstration (RAD). The number of units were included with Federal Housing C hoice Voucher.
In FY17, stats for the Nutritional Supplements Program were included. This program is provided to clients who need additional sources of nutrition and/or who cannot tolerate regular solid food.
Sources: Fairfax C ounty Department of Management and Budget, Fairfax C ounty Public Schools, Fairfax C ounty Redevelopment and Housing Authority, Fairfax C ounty Park Authority
In FY2012, the Virginia Department of Behavioral Health and Developmental Services revised reporting requirements related to individuals served. Prior to FY2012, individuals who received emergency and ancillary services were primarily reported as being served in mental health, substance abuse or developmental services. Individuals served reflects duplicated count as individuals may be served in more than one program area.
313Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012 Function/Program
Community development: 153,055 156,331 148,587 150,877 136,532 Building inspections
57,972 59,471 59,956 59,714 54,138 Building permits issued
21,513 19,223 19,163 17,982 15,000 Zoning permits processed
8,984,180 9,764,166 10,655,021 10,650,401 10,895,833 Fairfax C onnector bus passengers
Parks, recreation, and cultural:
302,637 296,883 277,342 284,392 260,943 Senior C enter attendance
81,975 94,142 92,895 84,180 97,913 Teen C enter attendance
330,782 308,143 269,279 264,144 224,163 C ommunity C enter attendance
4,727,927 4,814,043 4,990,860 5,221,226 5,246,854 Library visits
12,042,565 12,095,926 12,881,013 13,091,690 13,034,816 C irculation of all library materials
C omponent Units:
Public Schools:
1,672 1,669 1,668 1,663 1,659 C ombined SAT scores (6)
82,168 81,526 83,355 85,006 86,703 Number of lunches served daily
20,102 19,193 19,090 17,171 15,400 Number of breakfasts served daily
185,979 185,914 183,895 181,259 177,918 Student enrollment
25,740 25,490 25,358 25,114 24,807 Special education enrollment
31,120 31,104 31,204 28,090 27,944 ESOL enrollment
Redevelopment and Housing Authority: Residents housed through subsidized rental programs:
2,762 2,637 2,701 2,789 2,818 Federal Public Housing (7)
9,917 9,327 9,530 9,636 9,317 Federal Housing C hoice Vouchers (7)
6,034 6,223 6,202 6,224 6,166 C ounty Rental Program-multifamily and seniors
18 15 27 42 32 Homes sold in First-Time Homebuyer Program
Park Authority:
1,851,595 1,817,882 1,796,905 1,919,684 2,006,294 REC C enter attendance
268,801 259,313 268,151 276,759 294,828 Golf course rounds
1,813,942 1,601,690 1,324,432 791,038 881,510
Visits to natural, cultural, historic and interpretive
sites (2 )
175,701 179,575 178,861 180,336 176,240 C lass, camp, and program participation
In FY 2018, Federal Public Housing units were converted to project-based voucher units under the federal Rental Assistance Demonstration (RAD). The number of units were included with Federal Housing C hoice Voucher.
In FY17, stats for the Nutritional Supplements Program were included. This program is provided to clients who need additional sources of nutrition and/or who cannot tolerate regular solid food.
Sources: Fairfax C ounty Department of Management and Budget, Fairfax C ounty Public Schools, Fairfax C ounty Redevelopment and Housing Authority, Fairfax C ounty Park Authority
In FY2012, the Virginia Department of Behavioral Health and Developmental Services revised reporting requirements related to individuals served. Prior to FY2012, individuals who received emergency and ancillary services were primarily reported as being served in mental health, substance abuse or developmental services. Individuals served reflects duplicated count as individuals may be served in more than one program area.
Fiscal Year
In March 2016, the C ollege Board implemented a new grading scale from the previous 600 to 2400 to the new scale of 400 to 1600.
314
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 5.3 - Capital Asset Statistics by Function Last Ten Fiscal Years
Function/Program 2021 2020 2019 2018 2017
Primary Government:
General government administration:
Government office buildings (square feet) 2,018,300 2,018,300 2,028,977 2,017,255 1,739,631
Vehicle maintenance facilities 3 3 3 3 3
Judicial administration:
C orrectional facilities (inmate capacity) 1,260 1,260 1,260 1,260 1,260
C ourtrooms 44 44 44 44 44
Public safety:
Police:
Stations 8 8 8 8 8
Vehicles 1,493 1,495 1,476 1,467 1,456
Helicopters 2 2 2 2 2 C riminal justice academy (trainee capacity) 240 240 240 240 240
Fire and rescue:
C ounty-operated fire and rescue stations 32 31 30 30 30
Volunteer fire and rescue stations 7 7 8 8 8
C ombination stations 2 2 2 2 4
Vehicles 506 505 505 505 502
Boats 1 1 1 2 2
Training facilities (trainee capacity) 186 186 186 186 186
Animal shelters (animal capacity) 153 153 153 153 153
Public works:
Miles of sanitary sewer lines 3,250 3,243 3,249 3,247 3,242
Sewer pumping stations 63 63 63 63 61 Refuse collection, recycling, and disposal vehicles 250 223 229 229 229
Miles of stormwater drainage lines 1,516 1,561 1,679 1,668 1,662
Stormwater retention ponds 1,471 1,509 1,497 1,471 1,456
Landfills and transfer stations 3 3 3 3 3
Health and welfare:
Health-related clinics 5 5 5 8 8
Shelters 6 6 6 6 6
C ommunity Services Board C enters 7 7 7 7 7
Community development:
C ommunity centers 8 8 8 8 8
Bus shelters 438 473 463 421 534
Transit centers and park & ride lots 54 55 55 46 46
Fairfax C onnector buses 334 325 313 309 302
Parks, recreation, and cultural:
Libraries 23 23 23 23 23
Multi-C ultural centers 1 1 1 1 1
Trails and walkways (miles) 732 727 716 711 694
Fiscal Year
315Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012 Function/Program
Primary Government:
General government administration:
2,706,311 3,191,961 3,763,174 3,621,104 3,605,182 Government office buildings (square feet)
3 3 3 3 4 Vehicle maintenance facilities
Judicial administration:
1,371 1,260 1,157 1,220 1,257 C orrectional facilities (inmate capacity)
44 44 44 44 44 C ourtrooms
Public safety:
Police:
8 8 8 8 8 Stations
1,441 1,498 1,491 1,486 1,263 Vehicles
2 2 2 2 2 Helicopters
240 240 240 240 240 C riminal justice academy (trainee capacity)
Fire and rescue:
30 30 29 29 28 C ounty-operated fire and rescue stations
8 8 9 9 9 Volunteer fire and rescue stations
4 4 4 4 4 C ombination stations
502 502 502 502 495 Vehicles
2 2 2 2 4 Boats
186 186 186 186 186 Training facilities (trainee capacity)
153 153 153 137 158 Animal shelters (animal capacity)
Public works:
3,430 3,425 3,420 3,412 3,398 Miles of sanitary sewer lines
59 59 59 59 65 Sewer pumping stations
229 239 244 263 264 Refuse collection, recycling, and disposal vehicles
1,653 1,641 1,633 1,621 1,607 Miles of stormwater drainage lines
1,440 1,425 1,414 1,396 1,373 Stormwater retention ponds
3 3 3 3 3 Landfills and transfer stations
Health and welfare:
8 8 8 8 8 Health-related clinics
6 6 6 6 6 Shelters
7 7 10 10 10 C ommunity Services Board centers
Community development:
8 7 7 7 7 C ommunity centers
563 557 410 375 350 Bus shelters
43 47 36 36 38 Transit centers and park & ride lots
302 284 278 278 254 Fairfax C onnector buses
Parks, recreation, and cultural:
23 23 23 23 23 Libraries
1 1 1 1 2 C ommunity centers
689 677 664 656 649 Trails and walkways (miles)
(C ontinued)
Fiscal Year
316
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
County of Fairfax, VA TABLE 5.3 - Capital Asset Statistics by Function (concluded) Last Ten Fiscal Years
Function/Program 2021 2020 2019 2018 2017
C omponent Units:
Public Schools:
Elementary schools 142 141 141 141 141
Middle schools 23 23 23 23 23
High/secondary schools 25 25 25 25 25
Special education centers 7 7 7 7 7
Alternative high schools 2 2 2 2 2
Redevelopment and Housing Authority:
Housing units owned under programs:
Federal Public Housing 1,065 1,065 1,065 1,065 1,065
C ounty Rental Program 1,501 1,509 1,547 1,478 1,471
Senior Housing Program 476 476 476 476 476
Partnership Program 760 760 760 699 695
Park Authority:
Acres of park land 23,632 23,595 23,550 23,513 23,418
Athletic fields 260 266 266 262 263
Trail miles 334 334 332 327 326
Play areas and tot lots 228 238 206 209 210
Tennis courts 252 258 257 254 254
Multi-use courts 133 128 124 131 120
Recreational centers 9 9 9 9 9
Golf courses 9 9 9 9 9
Historic sites (1) 121 83 68 68 68
Nature/visitor centers 7 7 7 7 7
Marinas 3 3 3 3 3
Notes:
(1 ) The difference in Historic Sites is due to the number of curator houses added to sites.
Fiscal Year
Sources: Fairfax C ounty Department of Finance, Fairfax C ounty Public Schools, Fairfax C ounty Redevelopment and Housing Authority, Fairfax C ounty Park Authority
317Statistical Section (unaudited)
Statistical Section (unaudited)
2016 2015 2014 2013 2012 Function/Program
C omponent Units:
Public Schools:
139 139 139 139 138 Elementary schools
23 23 23 23 22 Middle schools
25 25 25 25 25 High/secondary schools
7 7 7 7 7 Special education centers
2 2 2 2 2 Alternative high schools
Redevelopment and Housing Authority:
Housing units owned under programs:
1,065 1,065 1,065 1,065 1,065 Federal Public Housing
1,467 1,458 1,456 1,420 1,420 C ounty Rental Program
476 494 494 494 494 Senior Housing Program
690 779 779 779 779 Partnership Program
Park Authority:
23,372 23,346 23,310 23,265 23,196 Acres of park land
268 268 272 272 274 Athletic fields
324 324 324 320 320 Trail miles
212 210 209 205 205 Play areas and tot lots
254 254 252 252 227 Tennis courts
124 124 124 124 132 Multi-use courts
9 9 9 9 9 Recreational centers
9 9 9 9 9 Golf courses
68 68 68 68 68 Historic sites
7 7 7 7 7 Nature/visitor centers
3 3 3 3 3 Marinas
Fiscal Year
318
Statistical Section (unaudited)
County of Fairfax, Virginia Annual Comprehensive Financial Report
Fairfax County is committed to a policy of nondiscrimination in all County programs, services, and activities. Reasonable accommodations
will be provided upon request.
Special accommodations/alternative information formats will be provided upon request. Call 703-324-3120, TTY 711
The FY 2021 Annual Comprehensive Financial Report was prepared by:
COUNTY OF FAIRFAX, VIRGINIA DEPARTMENT OF FINANCE
12000 Government Center Parkway, Suite 214 Fairfax, Virginia 22035
- Fairfax County ACFR
- County of Fairfax, Virginia 2021 ACFR
- Front Cover
- Title Page
- Table of Contents
- Introductory Section
- Letter of Transmittal
- Directory of Officials
- Organization Chart
- ACFR Project Team
- Certificate of Achievement for Excellence in Financial Reporting
- Financial Section
- Independent Auditors Report
- Management Discussion and Analysis
- Basic Financial Statements
- Exhibit A - Statement of Net Position
- Exhibit A-1 - Statement of Activities
- Exhibit A-2 - Balance Sheet - Governmental Funds, with Reconciliation
- Exhibit A-3 - Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds, with Reconciliation
- Exhibit A-4 - Statement of Net Position - Proprietary Funds
- Exhibit A-5 - Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds
- Exhibit A-6 - Statement of Cash Flows - Proprietary Funds
- Exhibit A-7 - Statement of Fiduciary Net Position
- Exhibit A-8 - Statement of Changes in Plan Net Position - Trust Funds
- Exhibit A-9 - Combining Statement of Net Position - Component Units
- Exhibit A-10 - Combining Statement of Activities - Component Units
- Notes to the Financial Statements
- Note A - Summary of Significant Accounting Policies
- Note B - Deposits and Investments
- Note C - Property Taxes
- Note D - Receivables
- Note E - Interfund Balances and Transfers
- Note F - Capital Assets
- Note G - Retirement Plans
- Note H - Other Post-Employment Benefits
- Note I - Risk Management
- Note J - Long-term Obligations
- Note K - Long-term Commitments
- Note L - Contingent Liabilities
- Note M - Implementation of New Accounting Pronouncements
- Note N - Restatement
- Required Supplementary Information
- Budgetary Comparison Schedule - General Fund (Budget Basis)
- Schedule of Changes in Net Pension Liability and Related Ratios - Employees' Retirement System
- Schedule of Changes in Net Pension Liability and Related Ratios - Police Officers Retirement System
- Schedule of Changes in Net Pension Liability and Related Ratios - Uniformed Retirement System
- Shcedule of Changes in Net Pension Liability and Related Ratios - Educational Employees Supplementary Retirement System
- Schedule of Net Pension Liability-Single Employer Plans
- Schedule of Employer Contributions-Single Employer Plans
- Schedule of Proportionate Share of Net Position Liability in VRS Pension Plan and Contributions
- Schedule of Changes in the Net OPEB Liability and Related Ratios
- Schedule of Contributions and Investment Returns-OPEB
- Schedule of Changes in the Net OPEB Liability and Related Ratios - Public Schools
- Schedule of Public Schools' Proportionate Share of Net OPEB Liability in VRS HIC and VRS GLI OPEB Plans
- Schedule of Contributions - Public Schools and VRS HIC OPEB Plans
- Schedule of Contributions - Public Schools VRS GLI OPEB Plan
- Schedule of Investment Returns - Public Schools OPEB Plan
- Notes to Required Supplementary Information
- Note A: Budgetary Data
- Note B: Pension Trend Data
- Note C: Other Post-Employment Benefits (OPEB) Trend Data
- Other Supplementary Information
- Governmental Funds
- General Fund
- Exhibit B - Budgetary Comparison Schedule Detail - General Fund (Budget Basis)
- Exhibit B-1a - Budgetary Comparison Schedule - Consolidated Community Funding Pool Fund (Budget Basis)
- Exhibit B-1b - Budgetary Comparison Schedule - Contributory Fund (Budget Basis)
- Exhibit B-1c - Budgetary Comparison Schedule - Northern Virginia Regional Identification System (Buget Basis)
- Exhibit B-1d - Budgetary Comparison Schedule - Information Technology Fund (Budget Basis)
- Exhibit B-1e - Budgetary Comparison Schedule - Revenue Stabilization Fund (Budget Basis)
- Exhibit B-1f - Budgetary Comparison Schedule - Economic Opportunity Reserve Fund (Budget Basis)
- Nonmajor Governmental Funds
- Exhibit C - Combining Balance Sheet - Nonmajor Governmental Funds
- Exhibit C-1 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds
- Special Revenue Funds
- Exhibit D - Combining Balance Sheet - Special Revenue Funds
- Exhibit D-1 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Special Revenue Funds
- Budgetary Comparison Schedules - Special Revenue Fund (Budget Basis)
- Exhibit D-2a - County Transit Systems Fund
- Exhibit D-2b - Dulles Rail Phase I Transportation Improvement District Fund
- Exhibit D-2c - Dulles Rail Phase II Transportation Improvement District Fund
- Exhibit D-2d - County Regional Transportation Projects
- Exhibit D-2e - Tysons Service District Fund
- Exhibit D-2f - Reston Service District Fund
- Exhibit D-2g - Metrorail Parking System Pledged Revenue Fund
- Exhibit D-2h - Federal/State Grant Fund
- Exhibit D-2i - Cable Communications Fund
- Exhibit D-2j Early Childhood Birth to 5 Fund
- Exhibit D-2k - Fairfax-Falls Church Community Services Board Fund
- Exhibit D-2l - Reston Community Center Fund
- Exhibit D-2m - McLean Community Center Fund
- Exhibit D-2n - Burgundy Village Community Center Fund
- Exhibit D-2o - E-911 Fund
- Exhibit D-2p - Integrated Pest Management Program Fund
- Exhibit D-2q - Stormwater Services Fund
- Exhibit D-2r - Leaf Collection Fund
- Exhibit D-2s - Refuse Collection and Recycling Operations Fund
- Exhibit D-2t - Refuse Disposal Fund
- Exhibit D-2u - I-95 Refuse Disposal Fund
- Exhibit D-2v - Community Development Block Grant Fund
- Exhibit D-2w - Housing Trust Fund
- Exhibit D-2x - HOME Investment Partnership Grant Fund
- Debt Service Fund
- Exhibit E - Combining Balance Sheet - Debt Service Funds
- Exhibit E-1 - Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Debt Service Funds
- Exhibit E-2 - Budgetary Comparison Schedule - Debt Service Fund (Budget Basis)
- Capital Projects Fund
- Exhibit F - Combining Balance Sheet - Capital Projects Funds
- Exhibit F1 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Capital Projects Funds
- Internal Service Funds
- Exhibit G - Combining Statement of Net Position - Internal Service Funds
- Exhibit G-1 - Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds
- Exhibit G-2 - Combining Statement of Cash Flows - Internal Service Funds
- Fiduciary Funds
- Exhibit H - Combining Statement of Fiduciary Net Position - Trust Funds
- Exhibit H-1 - Combining Statement of Changes in Fiduciary Net Position - Trust Funds
- Exhibit H-2 - Combining Statement of Fiduciary Net Position - Custodial Funds
- Exhibit H-3 - Combining Statement of Changes in Net Position - Custodial Funds
- Component Units
- Fairfax County Public Schools
- Exhibit I - Balance Sheet - Governmental Funds, with Reconciliation
- Exhibit I-1 - Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds, with Reconciliation
- Exhibit I-2 - Budgetary Comparison Scehdule - General Fund (Budget Basis)
- Exhibit I-3a - Budgetary Comparison Schedule - Food and Nutrition Services Fund (Budget Basis)
- Exhibit I-3b - Budgetary Comparison Schedule - Grants and Self-Supporting Programs Fund (Budget Basis)
- Exhibit I-3c - Budgetary Comparison Schedule - Adult and Community Education Fund (Budget Basis)
- Exhibit I-4 - Combining Statement of Net Position - Internal Service Funds
- Exhibit I-5 - Coming Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds
- Exhibit I-6 - Combining Statement of Cash Flows - Internal Service Funds
- Exhibit I-7 - Statement of Fiduciary Net Position - Trust Funds
- Exhibit I-8 - Statement of Changes in Plan Net Position - Trust Funds
- Fairfax County Redevelopment and Housing Authority
- Exhibit J - Statement of Net Position
- Exhibit J-1 - Statement of Revenues, Expenses, and Changes in Net Position
- Exhibit J-2 - Statement of Cash Flows
- Fairfax County Park Authority
- Exhibit K - Balance Sheet, with Reconciliation
- Exhibit K-1 - Statement of Revenues, Expenditures, and Changes in Fund Balances, with Reconciliation
- Exhibit K-2a - Budgetary Comparison Schedule - General Fund (Financed from County General Fund) (Budget Basis)
- Exhibit K-2b - Budgetary Comparison Schedule - Park Revenue Fund (Budget Basis)
- Fairfax County Economic Development Authority
- Exhibit L - Balance Sheet, with Reconciliation
- Exhibit L-1 - Statement of Revenues, Expenditures, and Changes in Fund Balance, with Reconciliation
- Exhibit L-2 - Budgetary Comparison Schedule - General Fund (Financed From County General Fund) (Budget Basis)
- Statistical Section
- Financial Trends Information
- Table 1.1 - Net Position by Component
- Table 1.2 - Changes in Net Position
- Table 1.3 - Fund Balances, Governmental Funds
- Table 1.4 - Changes in Fund Balances, Governmental Funds
- Revenue Capacity Information
- Table 2.1 - Assessed Value and Actual Value of Taxable Real Property
- Table 2.2 - Direct and Overlapping Real Property Tax Rates
- Table 2.3 - Principal Real Property Taxpayers
- Table 2.4 - Real Property Tax Levies and Collections
- Debt Capacity Information
- Table 3.1 - Ratios of Outstanding Debt by Type
- Table 3.2 - Ratios of General Bonded Debt Outstanding
- Table 3.3 - Direct and Overlapping Governmental Activities Debt
- Table 3.4 - Self-Imposed Debt Margin Information
- Table 3.5 - Pledged Revenue Coverage for the Integrated Sewer System
- Demographic and Economic Information
- Table 4.1 - Demographic and Economic Statistics
- Table 4.2 - Principal Employers
- Operating Information
- Table 5.1 - Full Time Equivalent County Government Employees by Function
- Table 5.2 - Operating Indicators by Function
- Table 5.3 - Capital Asset Statistics by Function
- Back Cover
