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PRINCEGEORGESCOUNTYMD-CAFRFY2016-updated.pdf
Rushern L. Baker, III County Executive
Comprehensive Annual Financial Report For the Year Ended June 30, 2016
PRINCE GEORGE'S COUNTY MARYLAND
Rushern L. Baker, III County Executive
2015 - 2016
COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended June 30, 2016
Prepared by Office of Finance Gail D. Francis
Director of Finance
This section contains the listing of County officials, the Letter of Transmittal and the Certificate of Achievement for Excellence in Financial Reporting.
INTRODUCTORY SECTION
i
Prince George's County, Maryland
Comprehensive Annual Financial Report Year Ended June 30, 2016
INTRODUCTORY SECTION
FINANCIAL SECTION
TABLE OF CONTENTS
Page
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Listing of County Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
vi
County Executive and Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
vii
Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii Certificate of Achievement for Excellence in Financial Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ix
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
xi
Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
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BASIC FINANCIAL STATEMENTS: Exhibit
Page
Government-wide Financial Statements:
A-1
Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
A-2
Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Fund Financial Statements:
A-3
Balance Sheets – Governmental Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
A-4
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds . . . . . . . . . . . . . .
21
A-5
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23 A-6
Statement of Net Position – Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
A-7
Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds . . .. . . . . . . . . . . . . .
27
A-8
Statement of Cash Flows – Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
A-9
Statement of Net Position – Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
A-10
Statement of Changes in Net Position – Fiduciary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
Notes to Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress – Pension and Other Postemployment Benefit Plans . . . . . . . . . . . . . . . . . . . . .
93
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COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES: Exhibit Page Combining and Individual Fund Statements and Schedules - Primary Government:
B-1
General Fund - Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
109
B-2
General Fund - Statement of Revenue, Expenditures and Changes in Fund Balance . . . . . . . . . . . . . . . . . . . .
110
B-3
General Fund - Schedule of Revenue - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
111
B-4
General Fund - Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115 C-1
Combining Balance Sheet – Nonmajor Governmental Funds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
125
C-2
Combining Statement of Revenue, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126 C-3
Combining Schedule of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual - Nonmajor Governmental Funds - Special Revenue . . . . . . . . . . . . . . . . . .
127
D-1 Combining Statement of Net Position – Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 D-2
Combining Statement of Revenue, Expenses and Changes in Fund Net Position – Internal Service Funds .. . . .
131
D-3
Combining Statement of Cash Flows – Internal Service Funds . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
132
E-1
Combining Statement of Fiduciary Net Position – Pension and Other Post Employment Benefit Trust Funds . . .
135
E-2
Combining Statement of Changes in Fiduciary Net Position – Pension and Other Post Employment Benefit Trust Funds
136
E-3
Combining Statement Plan Fiduciary Position – Pension Trust Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .
137
E-4 Combining Statement of Changes in Plan Fiduciary Position – Pension Trust Funds . . . . . . . . . .. . . . . . . . . . . . 138
E-5 Combining Statement of Changes in Position and Liabilities - Agency Funds . . . . . . . . . . . . . . . . . . . . . . . . . 139
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STATISTICAL SECTION (Unaudited)
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (cont.): Exhibit
Page
F-1
F-2
G-1
Combining Statement of Net Position – Nonmajor Component Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combining Statement of Activities – Nonmajor Component Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule of Capital Position Used in the Operation of Governmental Funds – By Function and Activity . . . . . . . .
141
143
145
G-2 Schedule of Changes in Capital Position Used in the Operation of Governmental Funds - By Function and Activity 146
G-3 Schedule of Capital Position Used in the Operation of Governmental Funds - By Source . . . . . . . . . . . . . . . . . 147
Table Financial Trends
1
Net Position By Component - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
149
2
Change in Net Position - Last Ten Fiscal Years . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
150
3
Fund Balances, Governmental Funds - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
152
4
Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . .
153
Revenue Capacity
5 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . 155
6 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
7 Real Property Tax Rates - Overlapping Governments – Cities and Towns - Last Ten Fiscal Years . . . . . . . . . . 157
8 Principal Taxpayers – Current Year and Nine Years Prior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
9 Property Tax Levies and Collections - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
10 Delinquent Charges and Service Charges Receivable by Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 161
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Table Page Debt Capacity 11
Ratio of Outstanding Debt by Type - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
162
12
Ratio of Net General Bonded Debt Outstanding – Last Ten Fiscal Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
163
13
Direct and Overlapping Governmental Activities Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164
14
Computation of Direct and Overlapping Governmental Activities Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
165
15
Computation of Legal Debt Margin - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
166
16
Revenue Bond Coverage - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
167
17
Revenue Bond Coverage (For Bond Covenant Purposes) - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . .
168
Demographic and Economic Information 18
Demographic and Economic Statistics - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
169
19
Principal Employers – Current Year and Nine Years Prior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
170
20
Total Government Employees by Function - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
171
Operating Information
21
Operating Indicators by Function - Last Ten Fiscal Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
172
22
Capital Position Statistics - Last Ten Fiscal Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .
173
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ELECTED OFFICIALS
INDEPENDENT AUDITORS
COUNTY EXECUTIVE Rushern L. Baker, III
Derrick Leon Davis
COUNTY COUNCIL Chairman
Mel Franklin
Obie Patterson
Dannielle M. Glaros Deni Taveras Andrea C. Harrison Karen R. Toles Mary A. Lehman Todd M. Turner
CERTAIN OTHER EXECUTIVE BRANCH APPOINTED OFFICIALS
Nicholas A. Majett, Chief Administrative Officer
Betty Hager Francis, Deputy Chief Administrative Officer Glenda R. Wilson, Chief of Staff
Thomas Himler, Deputy Chief Administrative Officer M. Andree Green, County Attorney
Barry L. Stanton, Deputy Chief Administrative Officer Gail D. Francis, Director of Finance
Terri L. Bacote-Charles, Director, Office of Management and Budget
CliftonLarsonAllen LLP
Todd M. Turner, Esq. District 4
Derrick Leon Davis Chair, District 6
Prince George’s County Elected Officials
Rushern L. Baker, III County Executive
Deni Taveras District 2
Dannielle M. Glaros Vice Chair, District 3
Andrea C. Harrison District 5
Karen R. Toles District 7
Obie Patterson District 8
Mel Franklin District 9
Mary A. Lehman District 1
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Line Agencies Staff Agencies Other Agencies
Boards and Commissions
Semi-Autonomous Agencies
Housing Authority
Redevelopment Authority
Industrial Development Authority
Bi-County Agencies
Washington Suburban Transit Commission
Washington Suburban Sanitary Commission
Maryland-National Capital Park and Planning Commission
Soil Conservation District
Office of the State's Attorney
Board of License Commissioners
Department of Permitting, Inspections and Enforcement
Memorial Library
Revenue Authority
PRINCE GEORGE'S COUNTY GOVERNMENT ORGANIZATIONAL CHART
Executive Branch
COUNTY EXECUTIVE
Health Department
Office of Finance Office of the Sheriff
Subject to County Funding and Control
Police Department
Office of Community Relations
Department of Family Services
Human Relations
Citizens Oversight Panel
CHIEF ADMINISTRATIVE OFFICER
Office of Law
Office of Central Services
Office of Human Resources Management
Offce of Management and BudgetDepartment of Corrections
Fire/EMS Department
Office of Information Technology
Personnel Board
Volunteer Fire Companies
Department of the Environment
Department of Public Works and Transportation
Department of Housing and Community Development
People's Zoning Counsel Prince George's Community College
Board of Education
Office of Homeland Security
Department of Social Services
County Board of Elections
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- THIS PAGE NOT USED. -
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THE PRINCE GEORGE’S COUNTY GOVERNMENT OFFICE OF FINANCE 14741 Governor Oden Bowie Drive * Suite 3200 *Upper Marlboro, Maryland 20772
Telephone: 301-952-5025 * Fax: 301-952-3148 * 711 Maryland Relay Service * www.princegeorgescountymd.gov
RUSHERN L. BAKER, III, COUNTY EXECUTIVE GAIL D. FRANCIS, DIRECTOR OF FINANCE
February 28, 2017 The Honorable County Executive, Members of the County Council, and Citizens of Prince George's County, Maryland Ladies and Gentlemen: We are pleased to present the Comprehensive Annual Financial Report (CAFR) of Prince George's County (the County) for the fiscal year ended June 30, 2016 required by local ordinances and state statutes. These ordinances and statutes stipulate that the County annually issue a report on its financial position and activity, and that this report be audited by an independent firm of certified public accountants. The public accounting firm of CliftonLarsonAllen LLP was engaged to perform this task for fiscal year 2016. The auditor’s report on the basic financial statements and the combining and individual fund statements and schedules is included in the financial section of this report. The County is also required to undergo an annual single audit in conformity with the provisions above. Information related to the County’s Single Audit, including a Schedule of Expenditures of Federal awards, the independent auditor’s report on compliance with requirements applicable to each major program and internal control over compliance, and a Schedule of Findings and Questioned Costs will be included in a separately issued single audit report. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a way that presents fairly the financial position and results of operations of the governmental and business-type activities, various funds, and component units of the County. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. Accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental entities require the County to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management’s Discussion and Analysis (the MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the report of the independent auditors on pages 3 through 16.
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PROFILE OF THE GOVERNMENT Prince George's County, Maryland - a body corporate and politic - is a political subdivision of the State of Maryland, which operates under a "home rule" Charter which was adopted in November 1970. The powers of the County are contained in the Charter of Prince George's County, Maryland (the "Charter") and in the Constitution and laws of the State of Maryland. The Charter controls two branches of government. The executive branch enforces the laws and manages the business affairs of the County. It consists of a County Executive (elected by the qualified voters of the entire County) and all other officers, agents, and employees under the County Executive's supervision and authority, including the Chief Administrative Officer who is responsible for the day-to-day administration of the County. The legislative branch of the County consists of a nine-member County Council (elected by Councilmanic District) and its staff. The Charter limits the County Executive and members of the Council to two consecutive four-year terms in office. The judicial branch is independent and separate from the other branches of government and gets its authority from the Maryland Constitution. It is primarily comprised of the Court System and the State’s Attorney’s Office. When Prince George's County was formed, it included all of that part of Maryland lying between the Potomac and Patuxent Rivers, extending from Mattawoman and Swansons Creeks on the south to the Pennsylvania line on the north, thus encompassing the area which today is comprised of the District of Columbia, Montgomery, Frederick, Washington, Allegany, and Garrett Counties, the northwest half of Carroll County, and that part of Charles County lying north of Mattawoman Creek. Named for Prince George of Denmark, husband of Princess Anne, heir to the throne of England, our County was founded in 1696. Between 1696 and 1800, Prince George's County was reduced to its present size by acts of Maryland's General Assembly. Prince George’s County has grown to become the second largest jurisdiction in the State of Maryland (and the third largest in the metropolitan Washington area) with a population of nearly 909,535 residents. It encompasses 483 square miles that borders Washington, D.C., Montgomery, Howard and Anne Arundel Counties and is 37 miles south of the City of Baltimore. The County’s centralized location and its rich diversity has attracted more than 14,281 businesses to its twenty- seven unique municipalities. Having a robust transportation system allows easy accessibility to the region’s national and international airports and to the Port of Baltimore. County residents enjoy a diversity of leisure options, including a park system encompassing almost 28,000 acres of parkland and open space. Leisure facilities and services provided by the Maryland- National Capital Park and Planning Commission (the “M-NCPPC”) include a sports and concert facility (Show Place Arena); a 10,000 seat AA Minor League Baseball stadium (Bowie Baysox); community centers; recreational buildings; aquatic facilities; ice rinks; golf courses; an equestrian center; tennis courts; a performing arts and cultural center; and a gymnastic center. Other major recreational facilities include an 87,052-seat National Football League stadium (FedEx Field – Home of the Washington Redskins); an
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amusement park (Six Flags of America) featuring rides, attractions and shows; and a 240,000 square foot Olympic-quality recreational Sports and Learning Complex. In addition, recreational and cultural opportunities of the nation’s capital, Washington, D.C., are located just across the County line. The County is home to six universities and colleges, including the flagship campus of the University System of Maryland. Prince Georgians enjoy an excellent road system and some of the most affordable housing in the Washington area as well as convenient access to three major airports and the Port of Baltimore. THE REPORTING ENTITY AND ITS SERVICES The financial reporting entity (the County) includes all the funds of the Primary Government (i.e., Prince George's County, Maryland as legally defined). It also includes Component Units for which the Primary Government is financially accountable. Discretely presented Component Units are reported in a separate column in the basic financial statements to emphasize that they are legally separate from the Primary Government and to differentiate their financial position and results of operations from those of the Primary Government. The County's eight Component Units are the following: Board of Education of Prince George's County, Housing Authority of Prince George's County, Industrial Development Authority of Prince George's County, Prince George's County Memorial Library System, Prince George's Community College, Prince George's Community Television Inc., Revenue Authority of Prince George’s County, and Redevelopment Authority of Prince George’s County. The Washington Suburban Sanitary Commission (WSSC), the Maryland-National Capital Park and Planning Commission (M-NCPPC), the Washington Suburban Transit Commission (WSTC), and the Washington Metropolitan Area Transit Authority (WMATA) are joint ventures as disclosed in the accompanying notes to the financial statements. The Metropolitan Washington Council of Governments (COG) is reported as a jointly governed organization rather than a joint venture. Dimensions Health Corporation and the Economic Development Corporation are deemed to be neither component units, nor joint venture activities as such, and accordingly are excluded from this report. The services provided by the Primary Government include police, fire and emergency services, health and human services, family and environmental service programs, public works, and court and correctional services. The Primary Government also adopts and maintains building codes, regulates licenses and permits, collects taxes and revenue, maintains records, conducts elections, and collects, recycles and disposes of refuse. Services provided by the component units and partially financed by the Primary Government include: elementary, secondary, and community college education; public and private building construction; community building projects; projects devoted wholly or partially for public use that will stimulate employment or economic growth; library services; planning services; parking facilities; public and private residential housing; and public access to cable television programming. Public transit, parks and recreational facilities, and water and sewer services are provided by various joint venture entities.
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MANAGEMENT INITIATIVES The County has instituted an integrated and comprehensive performance management system (CountyStat), that includes regular performance reporting and analysis and issue-focused, executive-level sessions and studies. It strengthens data-driven managerial and budgetary decisions, ensuring resources are utilized efficiently and effectively. In addition, it is a systematic approach that enables the County’s leadership to develop collaborative relationships; assess service delivery; identify cost-saving strategies; and improve the effectiveness of services.
The County’s vision, “Path to Greatness”, is a critical part of the strategic planning. It guides the government’s services to its residents, businesses and visitors and serves as the basis for spending priorities. This vision as stated is: “Prince George’s County is a nationally recognized jurisdiction that will be a leader in the Washington Metropolitan Region because of our thriving economy, great schools, safe neighborhoods and high quality healthcare. We will govern with policies and practices that are innovative, results oriented and sustainable. The residents and businesses of Prince George’s County will know that this is one of the best places to live, invest, work and visit.”
In order to transform the vision into a reality, the County has focused its resources on seven priorities: (1) a thriving economy, (2) an excellent education system, (3) safe neighborhoods, (4) quality health care, (5) effective human services, (6) a clean and sustainable environment, and (7) high performance government operations.
FACTORS AFFECTING FINANCIAL CONDITION
Economic Development is a core priority of Prince George’s County’s commitment to ensuring a high quality of life and securing the long-term viability of the County. The County established the Economic Development Incentive (EDI) Fund to assist the County in expanding its tax base; attracting businesses, retaining existing businesses; and expanding job opportunities through loans, grants and guarantees to businesses throughout the County. These loans have leveraged $623 million in total private investments, and assisted in the creation and/or retention of almost 7,500 jobs in Prince George’s County.
Contracting opportunities with government, research, technology and defense industry anchors contribute to the maintenance of a relatively stable market. There are fourteen federal agencies mostly with research-focused activities within the County. These agencies attract technology companies as partners/contractors for their operations. The NASA Goddard Space Flight Center, the USDA Beltsville Agricultural Research Center, the Army Research Laboratory, the Institute for Defense Analysis, the Internal Revenue Service, and the U.S. Census Bureau Supercomputer Center support the local technology business base. The University of Maryland at College Park is building several new facilities, some for national security-related tenants, on its 100-acre Enterprise Campus research park.
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The unemployment rate for the County dropped to 4.9% in Fiscal Year 2016 from 5.6% in Fiscal Year 2015. The rate remained close to the State of Maryland’s and below that of the United States.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
County Unemployment Rate (Source: Maryland Department of Labor, Licensing and Regulation)
FY2012
FY2013
FY2014
FY2015
FY2016
The County’s per capita income in calendar year 2015 was $41,352 and is projected to increase to $44,002 by 2020. With the completion of various economic development projects in the coming years, job growth should continue to climb. The labor force in 2015 was 524,250 and is projected to increase by .8% by 2020.
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2000 2010 2015 2020
Per Capita Income (Source: Maryland Department of Planning)
Per Capita Income
0
100,000
200,000
300,000
400,000
500,000
600,000
2000 2010 2015 2020
Labor Force (Source: Maryland Department of Planning)
Labor Force
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The County’s average median sales price for the first quarter of calendar year 2016 was 6.4% higher than the same period in 2015. Median sales prices have been steadily increasing since 2011, including a 13.1% increase in 2014 and a 6.3% increase in 2015.
$0.0 $50.0
$100.0 $150.0 $200.0 $250.0 $300.0 $350.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD*
Median Sales Price for Existing Homes (Source: Metropolitan Regional Information Systems)
($ in thousands)
LOCAL ECONOMY County sources such as taxes, fees, licenses and permits, service charges, use of money and property, etc. are used to fund the majority of government programs and services. Real property taxes represent the largest portion of County source funding for government operations, increasing in FY2016 by 7.7%. This growth was primarily due to a $0.04 increase in the real property tax rate from $0.96 to $1.00 per $100 of assessable value in FY2016. This rate adjustment will generate additional funding for the school system. Local income tax is another large revenue source for the County. Income tax collections along with the State Income Disparity Grant increased in FY2016 by 3.2% indicating a recovery in the local job market and regional economy. The County’s real estate market is showing signs of improvement with combined Transfer and Recordation tax receipts increasing by 6.6%. Forecasts for FY2017 show continued growth with transfer taxes projected to increase by 22.6% and recordation taxes to increase by 22.5% over FY2016 budgeted amounts. Revenue from licenses and permit fees increased 49.3% in FY2016 due to changes to the formula used to calculate building permit fees, a new technology surcharge and increases to certain fixed fee permits. These increases will keep fees at a level commensurate with our surrounding jurisdictions.
*CY 2016 YTD – March 2016
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LONG-TERM FINANCIAL PLANNING A Charter amendment adopted by the citizens in November 2002 requires the County to maintain a contingency reserve equal to 5% of the General Fund Budget. The County also maintains an operating reserve equal to 2% of the General Fund Budget to ensure a reasonable degree of stability to its programs over the long-term. Funds can only be used to meet a public emergency, which constitutes a sudden, unexpected or unforeseen condition or occurrence, creating an imminent hazard to life, health or property and requiring an immediate action. As part of the annual operating budget process, the County uses various forecasting and debt models to develop six-year revenue, expenditure, and fund balance projections. These models assist in revealing possible structural imbalances and provide an opportunity to take corrective actions. As a result, the County can further endure the efficient use of public funds over the long term. FINANCIAL POLICIES The County maintains an extensive budgetary control system. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the County Council. Budgetary control in the General Fund is maintained at the department/agency level and at the fund level for all other funds. No County liability shall be incurred or contracted by any department, agency, or employee, and no bill or invoice shall be approved or paid, unless authorized by the Council budget adoption or specific appropriation to cover payment out of public funds. Any person willfully violating this provision shall be deemed responsible for the contract, debt, or expenditure. Any Department Head allowing such actions is subject to disciplinary action by the Council. The County Executive is authorized to transfer budget amounts up to $250,000 within any department or fund; however, the County Council must approve any revisions that alter the total budgeted expenditures of any department or fund or transfer in excess of $250,000. No agency of the Primary Government shall expend, or contract to expend, more than the amounts appropriated in the budget for each fiscal year. The Component Units may transfer budget appropriations within certain limits, but generally may not alter total appropriations without a budget amendment by the County Council. The County has implemented a system of performance measurements, and many agencies are developing and tracking improved performance measures. Other agencies are tracking financial and program performance on a routine basis with a special emphasis on efficiency and outcome measures. The data is used to guide daily management decisions and to focus on operational policies. Prince George’s County, Maryland received AAA bond ratings from Moody’s Investor Services Inc., Fitch Ratings, and Standard and Poor’s Ratings Services, despite continuing economic challenges due to the ups and downs in market conditions and having to operate under various tax rate constraints. This reflects the County’s continued sound financial management, the ongoing and significant economic development occurring and its extremely diverse local economy.
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Management of the County is responsible for establishing and maintaining effective internal controls designed to ensure that the assets of the County are protected from loss, theft or misuse, and to ensure that accurate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state, and local financial assistance, the County is also responsible for establishing and maintaining effective internal control over compliance with requirements, laws, and regulations applicable to these programs. The internal control structure is subject to periodic evaluation by management and the County’s Office of Audits and Investigations. The Primary Government maintains an Office of Audits and Investigations as required by Charter. The duties and responsibilities of this office include: annual financial audits of all agencies receiving or disbursing County funds; special audits of the accounts of any such agency upon request by the Council or County Executive; special audits of the accounts maintained by various County officers upon their death, resignation, removal, or expiration of term; and performance audits of any agency which is a recipient of funds appropriated or approved by the Council. As demonstrated by the statements and schedules included in the Financial Section of this report, the County continues to meet its responsibility for sound financial management. AWARDS AND ACKNOWLEDGEMENTS Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Prince George's County, Maryland for its comprehensive annual financial report for the fiscal year ended June 30, 2015. This was the 36th consecutive year (fiscal years ended 1980 – 2015) that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a one-year period. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Distinguished Budget Presentation In addition, the County also received the GFOA's Award for Distinguished Budget Presentation for its annual appropriated budget for the fiscal year beginning July 1, 2015. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document was judged to be proficient in several categories including policy documentation, financial planning, and organization.
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This section contains the Independent Auditors’ Report, Management’s Discussion and Analysis (MD&A), the Basic Financial Statements, Required Supplementary Information, and the Combining and Individual Fund Statements and Schedules.
FINANCIAL SECTION
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INDEPENDENT AUDITORS' REPORT The Honorable County Council Prince George's County Government 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 Prince George's County Government (the “County”), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Prince George’s County Memorial Library System and Prince George’s Community Television, Inc., which represent 1 percent, 5 percent, and 1 percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Prince George’s County Memorial Library System and Prince George’s Community Television, Inc., is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. The financial statements of Prince George’s Community Television, Inc. were not audited in accordance with Government Auditing Standards. The financial statements of the Prince George’s Community Television, Inc. were not audited in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
CliftonLarsonAllen LLP CLAconnect.com
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Opinions In our opinion, based on our opinion and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Prince George's County Government as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the general fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the schedule of funding progress - pension and other postemployment benefits plans, as listed in the accompanying table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Prince George's County Government’s basic financial statements. The combining and individual fund statements and schedules and other information including the introductory section and statistical tables as noted on the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and statistical section as listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2017, on our consideration of the Prince George's County Government'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 to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Prince George's County Government’s internal control over financial reporting and compliance.
a CliftonLarsonAllen LLP Baltimore, Maryland February 28, 2017
MANAGEMENT’S DISCUSSION AND ANALYSIS
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Management is pleased to present this narrative overview and analysis of the financial activities of Prince George’s County, Maryland (the County) for the fiscal year ended June 30, 2016. We encourage the readers to consider the information presented here in conjunction with the additional information that we furnished in our letter of transmittal. The following discussion focuses on the County’s primary government and, unless otherwise noted, component unit information is not included.
FINANCIAL HIGHLIGHTS ¾ The County’s liabilities and deferred inflows exceed assets and deferred outflows at June 30, 2016 by $429.3 million (net position). The primary government has an
unrestricted net deficit balance of $2.5 billion, partially due to debt related to assets owned by its component units - the Board of Education and the Community College and also the reporting requirements for pension liabilities ($1.5 billion).
¾ The County’s total net position decreased by $108.2 million from the previous year. Net position of governmental activities decreased $115.2 million, while the net
position of business-type activities increased $7.0 million.
¾ At June 30, 2016, the County’s governmental funds report combined ending fund balances of $469.9 million, an increase of $14.5 million in comparison to the
previous fiscal year. Of this amount, $116.4 million remains in the General Fund of the County as unassigned, which represents approximately 7.2% of total general fund expenditures for fiscal year 2016.
OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County’s financial statements, which include government-wide and fund statements, as well as notes to the financial statements. Government-Wide Financial Statements Similar to private-sector reporting, government-wide financial statements are designed to provide a broad overview of the financial position of the County. They include a statement of net position and a statement of activities. These statements appear on pages 17 and 18 of this report. The statement of net position shows the County’s assets and deferred outflows less its liabilities and deferred inflows at June 30, 2016. The difference between the assets, deferred outflow of resources, liabilities and deferred inflow of resources is reported as net position. Changes in net position over time may be helpful in indicating an improving or deteriorating financial position. Additionally, nonfinancial factors, such as a change in the County’s property tax base or the condition of the County’s facilities, should be considered to assess the overall health of the County. The statement of activities follows the statement of net position and presents information on how net position changed during the fiscal year. The statement presents all underlying events, which give rise to the change, regardless of the timing of the related cash flows.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Both statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The government-wide financial statements of the County (known as the primary government) include general government, public safety, public works and transportation, health, public welfare, and education. The government-wide financial statements also include the legally separate component units for which the County is financially accountable. Financial information for these component units is reported separately from the primary government. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the County government can be divided into three categories: governmental, proprietary and fiduciary. Governmental funds – Governmental funds, presented on pages 19 to 24, essentially account for the same functions as those reported under the governmental activities in the government-wide financial statements. However, this set of financial statements focuses on events that produce near-term inflows and outflows of spendable resources as well as on the balances of spendable resources available at the end of the fiscal year and is a narrower focus than the government-wide statements. This information may be useful in evaluating the County’s near-term financing requirements and available resources. By comparing functions between the two sets of statements for governmental funds and governmental activities, readers can discern the long-term impact of near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison. Governmental funds individually presented in the County’s basic financial statements include three major funds: the General Fund, the Capital Projects Fund, and the Federal and State Aided Programs Fund. The remaining three funds have been combined and presented in one column as “Other Governmental Funds.” Combining statements for these other governmental funds are presented on pages 125 to 128 of this report. Proprietary funds – The County maintains two different types of proprietary funds: enterprise and internal service funds. These funds are included on pages 25 to 29 of this report. Enterprise funds are used to report, in detail, the same information presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for solid waste, stormwater management, and water protection and restoration. The solid waste and stormwater activities are considered major funds of the County. Internal service funds are an accounting device used to accumulate and allocate costs internally for the County. The County uses internal service funds to account for self-insurance, vehicle maintenance, and computer services. Because the internal service funds predominantly benefit governmental rather than business–type functions, they have been included within the governmental activities in the government-wide statements. The internal service funds are presented in total in the fund financial statements, but may be viewed separately in the combining statements on pages 129 to 133 in this report. Fiduciary funds – The County uses fiduciary funds to account for resources held for the benefit of parties outside the County government. Although these funds are presented with the fund statements, they do not appear in the government-wide financial statements because the resources of these funds are not available to support the programs of the County. The accounting method used for fiduciary funds is much like that used for proprietary funds. These funds are presented on pages 30 and 31 of this report.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in both government-wide and fund financial statements. Notes are presented on pages 33 to 92 of this report. Other Information This report also includes required supplementary information related to the funding progress of the County’s Trust Funds. This information is included on pages 93 through 108. Combining and individual statements and schedules referred to earlier, which present more detailed views of the General Fund, nonmajor governmental funds, internal service funds, fiduciary funds, and nonmajor component units are presented on pages 109 to 147. Additional information about the County, which may be of interest to the reader, is found in the Statistical Section of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, changes in net position over time is a useful indicator of a business enterprise's financial position. The County’s total net position as of June 30, 2016 was a deficit of $429.3 million. Investment in capital assets such as land, roads, bridges, buildings, machinery and equipment accounts for $1.7 billion of net position. The amount is presented less any outstanding debt related to the acquisition and accumulated deprecation of those assets. The County uses capital assets to provide services to the citizens, and consequently, these assets are not available for future spending. Although assets are reported net of related debt, the capital assets themselves cannot be used to liquidate that liability, and other resources will be needed to repay any associated debt.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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2016 2015 2016 2015 2016 2015
Current and other assets $ 864,414 791,713 197,190 213,714 1,061,604 1,005,427 Capital assets 2,365,386 2,298,529 330,799 311,910 2,696,185 2,610,439
Total assets 3,229,800 3,090,242 527,989 525,624 3,757,789 3,615,866
Deferred outflow of resources 238,356 102,579 5,935 2,923 244,291 105,502
Long-term liabilities 3,631,430 3,319,508 282,422 286,010 3,913,852 3,605,518 Other liabilities 457,298 389,466 34,966 33,106 492,264 422,572
Total liabilities 4,088,728 3,708,974 317,388 319,116 4,406,116 4,028,090
Deferred inflow of resources 23,942 13,198 1,315 1,199 25,257 14,397 Net position
1,522,174 1,615,023 150,379 139,610 1,672,553 1,754,633 Restricted 282,143 304,407 71,280 47,599 353,423 352,006 Unrestricted (deficit) (2,448,831) (2,448,781) (6,438) 21,023 (2,455,269) (2,427,758)
Total net position $ (644,514) (529,351) 215,221 208,232 (429,293) (321,119)
Schedules of Net Position
(in thousands)
Net investment in capital assets
Governmental activities Business-type activities Total
June 30, 2016 and 2015
Restricted net position represents resources subject to external restriction on how they may be used to meet the County’s ongoing obligations to citizens and creditors. As indicated earlier, the County’s governmental activities and business-type unrestricted net position deficit is attributable to outstanding debt that has been issued on behalf of the County’s component units and pension liabilities. The majority of this debt is for the Board of Education as the County continues to issue bonds to finance school construction projects. Counties in the State of Maryland issue debt for school construction; however, the buildings are owned by the County’s Board of Education.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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The following represents revenues by source and expenses by function of primary government for the years ended June 30, 2015 and June 30, 2016.
Charges for Services
16% Grant s and cont ribut ions
7%
P roperty taxes 38%
Income t axes 26%
Ot her t axes 13%
Ot her 0%
Revenue by Source FY 2016
General government
16%
Public Safety 30%
Other 9%
Education 36%
Interest on long- term debt
2%
Business-Type 7%
Expenses by Function FY 2016
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Governmental Activities Net position for the County’s governmental activities decreased by approximately $115.2 million in fiscal year 2016. The County’s total revenue from governmental activities was approximately $2.03 billion in fiscal year 2016 (approximately $168.1 million greater than fiscal year 2015.) Property and income taxes make up approximately 67 percent of this revenue. Income taxes increased by approximately $25.4 million or 4.6 percent. A large portion of this amount is based on estimates from the State of Maryland which creates some volatility in the amount. Property tax revenue increased approximately $59.0 million or 8.2%. The growth was related to an increase in assessable value of 24.7% above the property assessments of three years ago.
650
700
750
2014 2015 2016
Property Taxes (in millions)
450
500
550
600
2014 2015 2016
Income Taxes (in millions)
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Transfer and recordation taxes ($152.2 million), telecommunications taxes ($31.2 million), and energy taxes ($66.4 million) comprise the majority of the remaining other taxes. Other taxes increased by approximately $38.8 million or 16.2 percent. The $35.0 million increase in transfer and recordation taxes relates to an increase in home sales (14.9%) and an increase in the median sales price (6%) during fiscal year 2016.
0 50
100 150 200
2014 2015 2016
Transfer and Recordation (in millions)
Transfer Recordation
The County’s total expense from governmental activities was approximately $2.14 billion in fiscal year 2016 (approximately $125.7 million greater than fiscal year 2015.) The categories experiencing the largest decreases were general government (approximately $52.4 million–16.3% increase) and education (approximately $55.3 million– 7.4% increase). Some of the factors affecting the changes include:
¾ General Government expenditures increased by $52.4 million, mainly driven by increased adjustments to the pension and OPEB liabilities $39.3 and $7.1 million, respectively.
¾ Public safety expenditures increased by $17.0 million, mainly driven by increased adjustments to the pension liability $13.7 million and $10.0 million in equipment purchases. The equipment purchases in the past two years lead to an increase in depreciation expense for public safety of $4.9 million. Fire Department operating costs increased $9.0 million related to salary adjustments and related benefits.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Revenues: 2016 2015 2016 2015 2016 2015
Program Revenues:
Charges for services $ 232,644 178,354 113,895 110,187 346,539 288,541
139,789 145,620 - - 139,789 145,620
13,581 15,418 2,555 92 16,136 15,510
General revenue:
Property taxes 779,979 720,938 39,550 38,090 819,529 759,028
Income taxes 575,334 549,887 - - 575,334 549,887
Other taxes 278,463 239,706 - - 278,463 239,706
Other revenues 6,925 8,653 1,433 1,382 8,358 10,035
Total revenues 2,026,715 1,858,576 157,433 149,751 2,184,148 2,008,327
Expenses:
General government 374,612 322,215 - - 374,612 322,215
Public safety 695,922 678,934 - - 695,922 678,934
Environmental 4,136 5,560 - - 4,136 5,560
Health and Human Services 96,398 99,156 - - 96,398 99,156
Infrastructure and Development 115,701 107,710 - - 115,701 107,710
Education 798,961 743,632 - - 798,961 743,632
Interest on long-term debt 56,148 58,989 - - 56,148 58,989
Solid waste - - 94,062 91,898 94,062 91,898
Stormwater management - - 55,217 54,403 55,217 54,403
Water Protection and Restoration - - 1,165 1,133 1,165 1,133
Total expenses 2,141,878 2,016,196 150,444 147,434 2,292,322 2,163,630
Change in net position (115,163) (157,620) 6,989 2,317 (108,174) (155,303)
Net position - beginning of year (529,351) 842,079 208,232 221,954 (321,119) 1,064,033
Prior period adjustment - (1,213,810) - (16,039) - (1,229,849) Net position - end of year $ (644,514) (529,351) 215,221 208,232 (429,293) (321,119)
*Prior period adjustment due to implementation of GASB Statement No. 68.
Schedule of Changes in Net Position For the years ended June 30, 2016 and 2015
(in thousands)
Operating grants and contributions
Capital grants and contributions
Governmental activities Business-type activities Total
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Business-type Activities Business-type activities increased the County's net position by approximately $7.0 million in fiscal year 2016. Key elements of this increase are as follows: ¾ Total operating revenue for the Solid Waste Fund increased by approximately $3.3 million. This was primarily a result of an increase in charge for services. This
occurred in the revenue categories of Tax Collections, Recycling Revenue and Clean Lot Revenue in the amounts of $1million, $1.5 million and approximately $518,000 respectively.
¾ Total operating expenses for the Stormwater Management Fund increased by $1.5 million. The majority of the increase pertained to a $2million adjustment to the retirement liability.
¾ Total operating revenue for the Watershed Protection and Restoration Fund was $14.7 million which offset the net position described in the two previously stated
funds. FINANCIAL ANALYSIS OF GOVERNMENT FUNDS Governmental Funds As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. In assessing the County’s financing requirements, unassigned fund balance is a particularly useful measure of net resources available for spending at the end of the fiscal year. As of June 30, 2016, County governmental funds reported combined fund balances of $469.9 million, an increase of $14.5 million in comparison to the prior year balances. Restricted Governmental fund balance was $234.5 million which includes, $148.4 million for a charter-mandated contingency reserve (Rainy Day Fund), $30.8 million for various construction projects, $8.3 million for drug enforcement, $34.2 million for debt service and $12.8 million for other purposes. The General Fund is the chief operating fund of the County. At June 30, 2016, total fund balance in the general fund was $387.9 million of which $116.4 million was unassigned. The General Fund balance increased by $69.7 million as a result of current fiscal year operations. The following key factors were responsible for the changes:
¾ Total revenues increased $131.0 million from fiscal year 2016, which exceeded the final budget by $61.8 million. The majority of the increase ($123.7 million) related to the tax revenue which was discussed earlier in the governmental activities analysis
¾ Total expenditures and transfers out increased by $65.7 million or approximately 4.0 percent. The County spent $23.8 million on equipment purchases in fiscal year 2016 compared to $11.0 million in the prior fiscal year.
¾ Transfers to the debt service fund and other debt payments increased $11.5 million in fiscal year 2016
¾ State mandated contribution to the Prince George’s County Public Schools increased by 39.1 million.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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Capital Projects Fund expenditures totaled $203.0 million for fiscal year 2016 compared to $189.5 million in fiscal year 2015. There was an increase of $19.0 million in spending on Board of Education projects including an increase of $10.8 million for Fairmount Heights High School and $10.1 million for the Major Renovations Project. The County spend $14.7 million for the Laurel Library replacement in fiscal year 2016 compared to $2.6 million in fiscal year 2015. These increases were partially offset by the decrease in spending related to the $21.7 million purchase of a regional area administration building fiscal year 2015. There were no additional Capital project Fund costs for this facility in fiscal year 2016. The County received $113.8 million in bond proceeds in fiscal year 2016 compared to $189.7 million in fiscal year 2015. These factors led to a total decrease in fund balance of approximately $54.0 million in fiscal year 2016. Expenditures in the Federal and State Aided Programs Fund in decreased by approximately $3.2 million (3.1 percent) in comparison to fiscal year 2015. The majority of the decrease is in public safety grants. Many multiyear public safety grants experienced decreases in spending in fiscal year 2016 including PGSA ($804 thousand), FEMA SAFER ($766 thousand), and COPS Hiring ($500 thousand.) Proprietary Funds Proprietary fund statements provide more detail for the County’s business-type activities than the government-wide financial statements. Enterprise Funds. At June 30, 2016, total net position amounted to $222 million for enterprise funds as compared to $214.7 million at June 30, 2015. Unrestricted net position of the Stormwater Management Fund at the end of the year amounted to $3.9 million and for the Solid Waste Fund it was a negative $3.6 million. The total net position increased in the Watershed Protection and Restoration and the Solid Waste Fund by $13.7 million and $2.3 million, respectively. Whereas, the total net position decreased in the Stormwater Management Fund by $8.7 million. BUDGETARY HIGHLIGHTS The County’s final General Fund budget was increased by $8.9 million from the original budget. The additional funding was used to pay for winter snow events, public safety overtime and primary election spending. The funding for this was a declaration of additional tax revenue ($5.9 million) and use of fund balance.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
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CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. The County’s investment in capital assets for its governmental and business-type activities as of June 30, 2016 was $2.7 billion (net of accumulated depreciation.) This investment in capital assets includes land, buildings and improvements, equipment and vehicles, road networks, bridges, landfill property in service, and stormwater property in service. The total increase in the County’s investment in capital assets for the current fiscal year was 3.3% (2.9% increase for governmental activities and 6.1% increase for business-type activities.) Major capital asset events during the year include the following:
¾ $92.8 million in road network additions including developer contributions $54.2 million) and $38.6 million in project transferred from construction in progress related to Virginia Manor Road ($21.3 million) and Oxon Hill Road ($17.3 million) million in developer million transferred to the Land and
¾ $14.7 and 10.4 million added to construction in progress for the Laurel Library Expansion and the Police Training and Administrative Headquarters, respectively.
¾ Landfill property in service decreased by $5.9 million. The County’s capital assets, net of accumulated depreciation, are presented in the following table as of June 30, 2016 and 2015:
Capital Assets as of June 30 (net of accumulated depreciation)
2016 2015 2016 2015 2016 2015
Land $ 103,107,571 97,964,238 27,044,477 27,035,978 130,152,048 125,000,216 Buildings and improvements 441,112,546 443,859,158 17,677,996 18,537,839 458,790,542 462,396,997 Equipment 40,848,570 38,943,669 3,764,163 7,781,814 44,612,733 46,725,483 Infrastructure 1,682,901,824 1,629,422,356 - - 1,682,901,824 1,629,422,356 Landfill property in service - - 11,612,624 17,540,867 11,612,624 17,540,867 Stormwater property in service - - 137,179,294 137,915,326 137,179,294 137,915,326 Construction in progress 97,415,464 88,339,803 133,520,195 103,097,746 230,935,659 191,437,549 Total $ 2,365,385,975 2,298,529,224 330,798,749 311,909,570 2,696,184,724 2,610,438,794
Governmental activities Business-type activities Total
Additional information on the County’s capital assets is located in note 7 on pages 57 to 61 of this report.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
14
Long-term debt. At the end of the current fiscal year, the County had total bonded debt outstanding of $1.467 billion.
Outstanding Debt
2016 2015 2016 2015 2016 2015
General obligation bonds $ 1,286,868,805 1,268,947,000 180,041,195 189,983,000 1,466,910,000 1,458,930,000 Total $ 1,286,868,805 1,268,947,000 180,041,195 189,983,000 1,466,910,000 1,458,930,000
Governmental activities Business-type activities Total
Total bonded debt of the County increased by $7.9 million (0.6%) from the previous fiscal year. The key factors in the increase are bond proceeds of $174.1 million in June 2016 and the retirement of $100.0 million of general obligation. In June 2016 the County issued $58.4 million of general obligation bonds to refund $66.2 million of certain outstanding general obligation bonds. As a result of the refunding, the County will reduce its overall debt service obligations by $12.0 million. The present value of debt service savings in $6.1 million. The underlying ratings of the County’s general obligation bonds as of June 20, 2016, were as follows: Current Rating Standard & Poor's AAA Moody's Investors Service, Inc. Aaa Fitch Ratings AAA Additional information on the County’s long-term debt is located in note 13 starting on page 77 of this report.
PRINCE GEORGE’S COUNTY, MARYLAND MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2016
15
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Factors considered in preparing the County’s budget for fiscal year 2017 included:
¾ Property values grew in 2016. Group 1’s assessable value increased by 24.7% in January 2016 from three years ago, resulting in the growth of property tax
revenues.
¾ Home sales increased by 14.9% in fiscal year 2016 compared to fiscal year 2015. The average median sale price rose to $241,500 in FY 2016, up from $227,900 in FY 2015. These two factors contributed to an increase in transfer and recordation tax revenues in FY 2016.
¾ Foreclosures decreased by 4.6% in fiscal year 2016 compared to fiscal year 2015 for a total of 9,776 events. The overall number of foreclosures in fiscal year
2016 decreased on a quarterly basis from 2,408 in the first quarter to 2,182 in the fourth quarter.
¾ General Fund Income tax revenue rose to $547.6 in fiscal year 2016, a 4.6% increase from fiscal year 2015.
During fiscal year 2016, the unassigned fund balance in the General Fund was $116.4 million. The County has not appropriated a use of general fund fund balance for fiscal year 2017. Requests for Information This financial report is designed to provide a general overview of Prince George’s County, Maryland for those individuals with an interest in our government’s finances. Address questions concerning any of the information provided in this report or requests for additional information to the Office of Finance, Accounting Division, Attention: Assistant Director of Accounting, 14741 Governor Oden Bowie Drive, Suite 3151, Upper Marlboro, MD 20772. You can also reach us by fax at 301.952.3043 or send an email to: [email protected].
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BASIC FINANCIAL STATEMENTS
This sub-section contains the Basic Financial Statements and the Notes to the Financial Statements.
Primary Government Board of
Education of Other Total Total Governmental Business-type Prince George's Component Component Reclassifications Reporting
Activities Activities Total County Units Units (See note 1-r) Entity ASSETS
Cash and investments 316,219,125$ 68,659,337 384,878,462 250,300,014 67,375,674 317,675,688 - 702,554,150 Cash with fiscal agents 17,506,263 6,456,279 23,962,542 - - - - 23,962,542 Receivables (net of allowances
for uncollectibles): Taxes 4,282,416 506,567 4,788,983 - - - - 4,788,983 Accounts 40,249,326 5,812,551 46,061,877 26,323,338 36,737,357 63,060,695 - 109,122,572 Notes 31,308,689 - 31,308,689 - 3,434,107 3,434,107 - 34,742,796
Accrued interest receivable 185,069 60,968 246,037 - 8,769 8,769 - 254,806 Internal balance 12,280,947 (12,280,947) - - - - - - Due from component units 7,865,839 - 7,865,839 - - - 7,865,839 Due from primary government - - - 9,243,989 441,749 9,685,738 - 9,685,738 Due from other governmental units 204,554,774 1,485,724 206,040,498 56,106,438 4,888,513 60,994,951 - 267,035,449 Inventories 2,852,020 - 2,852,020 9,128,742 132,665 9,261,407 - 12,113,427 Prepaid costs and deposits 226,617 500,000 726,617 593,684 2,303,063 2,896,747 - 3,623,364 Restricted assets:
Cash and investments 226,832,649 125,990,351 352,823,000 - 9,311,068 9,311,068 - 362,134,068 Land - - - - 12,563,384 12,563,384 - 12,563,384
Capital assets: Nondepreciable assets 200,523,035 160,564,672 361,087,707 139,860,357 92,665,791 232,526,148 - 593,613,855 Depreciable assets, net 2,164,862,940 170,234,077 2,335,097,017 1,150,967,458 195,650,032 1,346,617,490 - 3,681,714,507
Other assets 50,000 - 50,000 - 3,977,007 3,977,007 - 4,027,007 Total assets 3,229,799,709 527,989,579 3,757,789,288 1,642,524,020 429,489,179 2,072,013,199 - 5,829,802,487
DEFERRED OUTFLOW OF RESOURCES Pension deferrals 234,537,691 5,738,876 240,276,567 56,011,693 2,796,447 58,808,140 - 299,084,707 Deferred charge on refunding 3,818,616 195,641 4,014,257 - 939,477 939,477 - 4,953,734
Total deferred outflow of resources 238,356,307 5,934,517 244,290,824 56,011,693 3,735,924 59,747,617 - 304,038,441
LIABILITIES Accounts payable 65,851,119 16,535,588 82,386,707 64,635,113 16,930,035 81,565,148 - 163,951,855 Retainages payable 5,449,966 1,669,372 7,119,338 8,933,582 - 8,933,582 - 16,052,920 Accrued liabilities 42,527,034 1,392,287 43,919,321 124,331,253 1,328,174 125,659,427 - 169,578,748 Unearned revenue 69,562,022 - 69,562,022 18,617,324 1,998,147 20,615,471 - 90,177,493 Matured bonds and interest payable - 2,155,241 2,155,241 - - - - 2,155,241 Deposits 55,179,379 83,713 55,263,092 - 370,928 370,928 - 55,634,020 Due to primary government - - - 915,816 6,950,023 7,865,839 - 7,865,839 Due to component units 9,685,738 - 9,685,738 - - - - 9,685,738
Noncurrent liabilities: Due within one year 209,043,300 13,130,065 222,173,365 36,767,716 7,282,105 44,049,821 - 266,223,186 Due in more than one year 3,631,429,929 282,421,521 3,913,851,450 1,600,684,955 91,547,188 1,692,232,143 - 5,606,083,593 Total liabilities 4,088,728,487 317,387,787 4,406,116,274 1,854,885,759 126,406,600 1,981,292,359 - 6,387,408,633
Pension deferrals 23,942,067 1,307,748 25,249,815 3,755,694 782,669 4,538,363 - 29,788,178 Deferred charge on refunding - 7,424 7,424 - - - - 7,424
23,942,067 1,315,172 25,257,239 3,755,694 782,669 4,538,363 - 29,795,602 NET POSITION
Net investment in capital assets 1,522,174,313 150,378,944 1,672,553,257 1,153,967,434 250,180,466 1,404,147,900 (503,035,085) 2,573,666,072 Restricted for:
Capital projects 88,200,801 50,254,772 138,455,573 3,485,408 - 3,485,408 - 141,940,981 Contingency reserve 148,391,975 - 148,391,975 - - - - 148,391,975 Debt service 34,230,029 - 34,230,029 - - - - 34,230,029 Restricted for I-net 11,319,891 - 11,319,891 - - - - 11,319,891 Landfill closure - 19,567,879 19,567,879 - - - - 19,567,879 Preservation - 1,457,801 1,457,801 - - - - 1,457,801 Education - - - - 10,526,416 10,526,416 - 10,526,416 Community development - - - 5,177,459 14,770,323 19,947,782 - 19,947,782
Unrestricted (deficit) (2,448,831,547) (6,438,259) (2,455,269,806) (1,322,736,041) 30,558,629 (1,292,177,412) 503,035,085 (3,244,412,133) Total Net Position (644,514,538)$ 215,221,137$ (429,293,401)$ (160,105,740)$ 306,035,834$ 145,930,094$ -$ (283,363,307)$
See accompanying notes to financial statements.
DEFERRED INFLOW OF RESOURCES -
Component Units
Exhibit A-1 PRINCE GEORGE'S COUNTY, MARYLAND
Statement of Net Position June 30, 2016
17
Exhibit A-2
Program Revenues Primary Government Component Units Operating Capital Board of Education
Charges for Grants and Grants and Governmental Business-type of Prince George's Other Expenses Services Contributions Contributions Activities Activities Total County Component Units
Functions/Programs Primary government:
Governmental activities: General government 374,611,539$ 88,751,746 22,137,203 3,813,609 (259,908,981) - (259,908,981) - - Public safety 695,921,598 48,168,338 22,761,497 684,709 (624,307,054) - (624,307,054) - - Environmental 4,136,436 325,470 84,423 50,715 (3,675,828) - (3,675,828) - - Health and Human Services 96,398,021 4,436,424 73,622,970 54,589 (18,284,038) - (18,284,038) - - Infrastructure and Development 115,700,759 90,962,207 21,182,326 8,977,424 5,421,198 - 5,421,198 - - Education: Board of Education 742,360,976 - - - (742,360,976) - (742,360,976) - - Community College 36,129,002 - - - (36,129,002) - (36,129,002) - - Memorial Library 20,471,180 - - - (20,471,180) - (20,471,180) - - Interest on long-term debt 56,147,749 - - - (56,147,749) - (56,147,749) - - Total governmental activities 2,141,877,260 232,644,185 139,788,419 13,581,046 (1,755,863,610) - (1,755,863,610) - -
Business-type activities: Solid Waste 94,062,499 95,380,258 - - - 1,317,759 1,317,759 - - Stormwater 55,216,649 3,803,795 - 2,555,148 - (48,857,706) (48,857,706) - -
. Watershed Protection 1,164,724 14,710,922 - - - 13,546,198 13,546,198 - - Total business-type activities 150,443,872 113,894,975 - 2,555,148 - (33,993,749) (33,993,749) - -
Total primary government 2,292,321,132$ 346,539,160 139,788,419 16,136,194 (1,755,863,610) (33,993,749) (1,789,857,359) - -
Component units: Board of Education 2,209,814,004 18,474,706 265,319,498 91,809,398 - - - (1,834,210,402) - Other Component Units: General Government 23,537,907 23,978,507 660,000 131,960 - - - - 1,232,560 Education 161,487,351 29,289,164 28,507,777 1,624,722 - - - - (102,065,688) Community development 76,642,560 2,460,056 71,154,703 1,727,981 - - - - (1,299,820)
Total component units 2,471,481,822$ 74,202,433 365,641,978 95,294,061 - - - (1,834,210,402) (102,132,948)
General Revenues: Property taxes 779,978,896 39,550,173 819,529,069 - - Income taxes 575,334,071 - 575,334,071 - - Transfer and recordation taxes 152,241,144 - 152,241,144 - - Energy taxes 66,394,765 - 66,394,765 - - Telecommunications tax 33,733,670 - 33,733,670 - - Other taxes 26,092,859 - 26,092,859 - - Unrestricted state shared tax 2,970,706 - 2,970,706 - - Earnings (loss) on investments 2,884,002 1,432,530 4,316,532 564,897 275,304 Unrestricted grants and contributions 549,897 - 549,897 1,711,106,893 92,913,489 Miscellaneous revenues 519,742 - 519,742 1,555,642 Total general revenues 1,640,699,752 40,982,703 1,681,682,455 1,711,671,790 94,744,435 Change in net position (115,163,858) 6,988,954 (108,174,904) (122,538,612) (7,388,513) Net position - beginning of year (529,350,680) 208,232,183 (321,118,497) (37,567,128) 302,083,619 Prior period adjustment - - - 11,340,728 Net position - beginning of year, restated (529,350,680) 208,232,183 (321,118,497) (37,567,128) 313,424,347 Net position - end of year (644,514,538)$ 215,221,137 (429,293,401) (160,105,740) 306,035,834
See accompanying notes to financial statements.
PRINCE GEORGE'S COUNTY, MARYLAND Statement of Activities
For the year ended June 30, 2016 Net (Expense) Revenue and Changes in Net Assets
18
Governmental Funds
Federal and State Non-Major Total
Aided Capital Governmental Governmental Assets General Programs Projects Funds Funds
Cash and investments 194,639,727$ 2,074,099 310,389 13,281,790 210,306,005 Cash with fiscal agents - - - 17,506,263 17,506,263 Receivables (net of allowances for uncollectibles):
Taxes 4,282,416 - - - 4,282,416 Accounts 36,408,853 1,139,837 - - 37,548,690 Notes 15,418,089 14,883,496 - - 30,301,585
Accrued interest receivable 172,859 - - - 172,859 Due from other funds 118,000,000 - - - 118,000,000 Due from component units 7,617,978 - - - 7,617,978 Due from other governmental units 138,044,290 62,747,880 3,256,124 34,775 204,083,069 Inventories 2,134,534 - - - 2,134,534 Restricted assets:
Cash and investments 12,662,041 1,726,915 197,446,842 14,996,851 226,832,649 Other assets 50,000 - - - 50,000
Total assets 529,430,787 82,572,227 201,013,355 45,819,679 858,836,048
Liabilities, Deferred Inflows, and Fund Balances Liabilities:
Compensated absences and termination benefits payable 339,556 - - - 339,556 Accounts payable 10,440,474 13,400,987 31,105,848 1,236,441 56,183,750 Retainages - - 5,449,966 - 5,449,966 Accrued liabilities 22,829,375 1,856,565 - - 24,685,940 Unearned revenue 15,418,089 46,017,671 - - 61,435,760 Deposits 29,063,927 70,089 26,045,363 - 55,179,379 Due to other funds - 19,500,000 93,000,000 - 112,500,000 Due to component units - - 9,685,738 - 9,685,738 Total liabilities 78,091,421 80,845,312 165,286,915 1,236,441 325,460,089
Deferred inflows of resources Unavailable tax revenue 63,452,321 - - - 63,452,321 Total deferred inflow of resources 63,452,321 - - - 63,452,321
Fund balances:
Nonspendable 2,134,534 - - - 2,134,534 Restricted 161,051,114 1,726,915 30,811,333 40,905,287 234,494,649 Committed 59,356,790 - 4,915,107 - 64,271,897 Assigned 48,926,434 - - 3,677,951 52,604,385 Unassigned 116,418,173 - - - 116,418,173 Total fund balances 387,887,045 1,726,915 35,726,440 44,583,238 469,923,638 Total liabilities, deferred inflows of resources, and fund balances 529,430,787$ 82,572,227 201,013,355 45,819,679 858,836,048
See accompanying notes to financial statements. (Continued)
Exhibit A-3 PRINCE GEORGE'S COUNTY, MARYLAND
Balance Sheet
June 30, 2016
19
Exhibit A-3, Cont.
Total fund balances for governmental funds (Exhibit A-3) 469,923,638$
Amounts reported for governmental activities in the statement of net position is different because:
Capital assets used in governmental funds are not financial resources and therefore are not reported in the funds. Those assets which do not include the combined assets related to the internal service funds consist of: Land 102,107,571$ Infrastructure, net of $1,220,193,075, accumulated depreciation 1,682,901,824 Buildings and improvements, net of $159,311,189, accumulated depreciation 441,112,546 Equipment, net of $144,662,276 accumulated depreciation 40,338,448 Construction in progress 97,415,464 Total capital assets 2,363,875,853
The assets and liabilities of the Internal Service Funds (funds used by management to charge the cost of fleet maintenance, information technology, and self-insurance) are included in the governmental activities in the statement of net assets. Internal service fund net position is: (87,412,432)
County revenue that is collected after year-end, but not available soon enough to pay for the current period's expenditures is reported as deferred inflow of resources in the funds. 63,452,321
Long-term note receivable that is not included in governmental funds 1,007,104
Long-term liabilities for governmental funds activity are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but is recognized as an expenditure when due. Balances at June 30, 2016 are:
Unmatured accrued interest (17,346,385) Long-term liabilities: Bonded debt (1,286,868,805) Deferred outflow of resources - bond refunding costs 3,818,616 Unamortized discount (premium) (122,925,719) Capital lease obligations (41,962,400) Pension and OPEB obligations (2,056,999,729) Compensated absences and termination benefits payable (75,225,002) Notes payable (65,717,200) Deferred outflow of resources - pensions 231,017,914 Deferred inflow of resources - pensions (23,152,312) Total long-term liabilities (3,438,014,637) Total net position of governmental activities (644,514,538)$
PRINCE GEORGE'S COUNTY, MARYLAND Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position June 30, 2016
20
Federal and State Non-Major Total
Aided Capital Governmental Governmental General Programs Projects Funds Funds
Revenues: Taxes $ 1,630,956,629 - - 2,506,150 1,633,462,779 Licenses and permits 37,407,084 - - 327,665 37,734,749 Fines and forfeitures 14,400,073 - - 839,469 15,239,542 Use of money and property 7,950,672 1,157,382 67,701 68,128 9,243,883 Charges for services 44,731,302 1,277,834 10,624,139 29,405,570 86,038,845 Intergovernmental 38,716,861 99,762,307 12,791,033 3,922,578 155,192,779 Miscellaneous 2,358,597 310,052 1,113,542 382 3,782,573 Total revenues 1,776,521,218 102,507,575 24,596,415 37,069,942 1,940,695,150
Expenditures: Current: General government 192,650,810 2,281,054 - 1,235,851 196,167,715 Public safety 639,120,163 12,453,358 - 1,200,178 652,773,699 Environmental 3,424,087 135,138 - - 3,559,225 Health and human services 22,101,157 72,747,263 - 391,847 95,240,267 Infrastructure and development 19,514,149 14,842,462 - - 34,356,611 Capital projects - - 108,617,981 - 108,617,981 Education: Board of Education 669,292,125 11,357 73,057,494 - 742,360,976 Community College 31,648,800 - 4,480,202 - 36,129,002 Memorial Library 18,485,200 - 16,872,359 - 35,357,559 Debt service: Principal retirement 20,276,004 322,000 - 89,000,000 109,598,004 Interest 5,442,236 215,566 - 52,655,787 58,313,589 Total expenditures 1,621,954,731 103,008,198 203,028,036 144,483,663 2,072,474,628 Excess of revenues over (under) expenditures 154,566,487 (500,623) (178,431,621) (107,413,721) (131,779,478)
Other financing sources (uses): General obligation bonds issued - - 113,835,000 - 113,835,000 Capital lease financing 10,161,624 - - - 10,161,624 Bond and notes premium - - 9,927,265 11,807,446 21,734,711 Bonds issued - refunding - - - 51,511,805 51,511,805 Bond premium - refunding - - - 7,990,279 7,990,279 Payment to bond refunding escrow agent - - - (58,956,180) (58,956,180) Transfers in - - 690,000 94,344,167 95,034,167 Transfers out (95,034,167) - - - (95,034,167) Total other financing sources (uses) (84,872,543) - 124,452,265 106,697,517 146,277,239 Net change in fund balances 69,693,944 (500,623) (53,979,356) (716,204) 14,497,761
Fund balances, beginning of year 318,193,101 2,227,538 89,705,796 45,299,442 455,425,877 Fund balances, end of year $ 387,887,045 1,726,915 35,726,440 44,583,238 469,923,638
See accompanying notes to financial statements. (Continued)
For the year ended June 30, 2016
Exhibit A-4 PRINCE GEORGE'S COUNTY, MARYLAND
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
21
Exhibit A-4, Cont.
Amounts reported for governmental activities in the statement of activities is different because:
Net change in fund balances - total governmental funds 14,497,761$
Capital Outlay, reported as expenditures in governmental funds, are shown as capital assets in the Statement of Net Position. 92,173,713
Depreciation expense on governmental capital assets is included as an expense in the statement of activities, but does not require the use of current financial resources, and therefore, is not reported as expenditures in governmental funds. (78,404,491)
Donated capital assets are reported as revenue on the statement of activities; however, they do not provide current financial resources to the funds. 54,227,960
Revenues in the statement of activities that do not provide current financial resources are reported as deferred revenue in the funds. This represents changes in deferred revenue at the fund level. 3,833,231
In the statement of activities the loss on disposal of equipment is reported, whereas in the governmental funds, disposal of capital assets are not recorded. Thus the change in net assets differs from the change in fund balance. (1,310,473)
Internal Service Funds are used by management to charge the cost of fleet maintenance, information technology, and self insurance. The net revenue is reported with governmental activities. (22,708,413)
Long-term debt proceeds are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of activities, however, issuing debt decreases long term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net assets.
Debt Issued: Bond proceeds (165,346,805) Bond and notes premium (29,724,990) Capital lease and note proceeds (10,161,624) Payment to escrow agent 59,502,084 Principal payments 109,598,004 Net adjustment (36,133,331)
Certain expenses reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. Accrued Interst Expense 2,165,841 Compensated Absences (4,340,941) Pension Expenses (62,250,290) Other post employment benefirs (93,841,817) Amortizarion 16,927,392
(141,339,815)
Change in net position of governmental activities (115,163,858)$
See accompanying notes to financial statements.
For the Year Ended June 30, 2016
PRINCE GEORGE'S COUNTY, MARYLAND Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to the Statement of Net Activities
22
Exhibit A-5 PRINCE GEORGE'S COUNTY, MARYLAND
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) General Fund
Variance with Final Budget
Original Final Positive Budget Budget Actual (Negative)
Revenues: Taxes 1,572,331,825$ 1,578,251,091 1,630,956,629 52,705,538 Licenses and permits 29,461,700 29,461,700 37,407,084 7,945,384 Fines and forfeitures 12,667,100 12,667,100 14,400,073 1,732,973 Use of money and property 12,841,900 12,841,800 7,950,672 (4,891,128) Charges for services 38,990,800 38,990,900 44,731,302 5,740,402 Intergovernmental 40,943,400 40,943,400 38,716,861 (2,226,539) Miscellaneous 1,556,300 1,556,300 2,358,597 802,297
Total revenues 1,708,793,025 1,714,712,291 1,776,521,218 61,808,927 Expenditures:
General government: County Executive 5,645,094 5,480,094 5,316,739 163,355 Legislative Branch 13,788,600 13,788,600 12,801,506 987,094 Office of Ethics and Accountability 572,026 549,026 532,213 16,813 Circuit Court 15,287,020 15,679,120 15,679,120 - Orphan's Court 407,778 411,978 409,524 2,454 Personnel Board 319,774 319,774 311,280 8,494 Office of Finance 3,637,074 3,637,074 3,555,604 81,470 Citizen Complaint Oversight Panel 255,584 247,584 231,929 15,655 Office of Community Relations 4,218,998 3,994,998 3,838,415 156,583 Office of Management and Budget 2,388,946 2,265,946 2,265,740 206 Board of License Commissioners 1,000,678 1,228,678 1,206,210 22,468 Office of Law 3,754,870 3,530,870 3,450,835 80,035 Office of Human Resource Management 5,304,152 5,453,252 5,107,720 345,532 Board of Elections 3,327,786 5,380,486 4,818,264 562,222 Office of Central Services 17,206,312 19,114,212 18,334,121 780,091 Property Managementt 501,200 501,200 310,689 190,511 Collington Center 5,000 5,000 5,000 - Non-departmental 162,416,780 149,572,046 139,321,012 10,251,034
Total general government 240,037,672 231,159,938 217,495,921 13,664,017
(Continued)
For the year ended June 30, 2016
23
Exhibit A-5, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Budgetary Basis) General Fund
For the year ended June 30, 2016
Variance with Final Budget
Original Final Positive Budget Budget Actual (Negative)
Public safety Office of the State's Attorney 15,885,996$ 15,743,996 15,620,806 123,190 Police Department 293,768,137 293,768,137 284,497,047 9,271,090 Fire Department 158,773,027 170,350,227 169,258,444 1,091,783 Sheriff's Department 41,255,828 42,365,828 40,967,904 1,397,924 Department of Corrections 76,309,739 81,348,039 80,996,589 351,450 Office of Homeland Security 24,250,093 24,972,793 24,972,793 -
Total Public Safety 610,242,820 628,549,020 616,313,583 12,235,437
Enviromental Department of Enviromental Resources 3,728,704 3,728,704 3,424,087 304,617
Total Enviroment 3,728,704 3,728,704 3,424,087 304,617
Health and Human Services Department of Family Services 2,864,638 2,880,938 2,678,781 202,157 Health 18,176,070 19,336,570 16,804,138 2,532,432 Public Welfare 2,729,104 2,777,904 2,618,238 159,666
Total Health and Human Services 23,769,812 24,995,412 22,101,157 2,894,255
Infrastructure and Development Public Works and Transportation 7,005,530 8,622,530 8,378,672 243,858 Department of Permitting, Inspections and Enforcement 7,565,992 8,053,992 7,480,005 573,987 Department of Housing and Community Development 3,556,714 3,556,714 3,556,714 -
Total Infrastructure and Development 18,128,236 20,233,236 19,415,391 817,845
Education 719,426,125 719,426,125 719,426,125 - Total Expenditures 1,615,333,369 1,628,092,435 1,598,176,264 29,916,171 Excess of revenues over expenditures 93,459,656 86,619,856 178,344,954 91,725,098
Other financing sources (uses): Transfers in - other funds 5,032,000 5,032,000 - (5,032,000) Transfers out - other funds (98,947,856) (95,108,056) (95,034,167) 73,889 Appropriated fund balance 456,200 3,456,200 - (3,456,200)
Total other financing sources (uses) (93,459,656) (86,619,856) (95,034,167) (8,414,311) Deficiency of revenues and other financing sources under expenditures and other uses
(budgetary basis) - - 83,310,787 83,310,787 Adjustments:
Purchase agreement financing 10,161,624 Capital financing expenditures (23,778,467) Excess of revenues and other financing sources over expenditures and other uses (GAAP basis) 69,693,944 Fund balance, beginning of year 318,193,101 Fund balance, end of year 387,887,045$
See accompanying notes to financial statements.
24
Governmental Non-Major Activities-
Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service
Assets Fund Fund Fund Total Funds Current assets:
Cash and investments $ 1,015,341 27,422,125 40,221,871 68,659,337 105,913,120 Cash with fiscal agents 6,456,279 - 6,456,279 - Taxes receivable - 541,693 - 541,693 -
Less allowance for uncollectibles - (35,126) - (35,126) - Accounts receivable 5,257,496 - 834,181 6,091,677 2,700,636
Less allowance for uncollectibles (279,126) - - (279,126) - Accrued interest receivable 24,991 29,161 6,816 60,968 12,210 Due from component units - - - - 247,861 Due from other governmental units 289,264 1,196,460 - 1,485,724 471,705 Inventories - - - - 717,486 Prepaid costs and deposits - - 500,000 500,000 226,617
Total current assets Total current assets 12,764,245 29,154,313 41,562,868 83,481,426 110,289,635 Noncurrent assets:
Restricted cash and investments Revenue bond operation and maintenance 9,000,000 - - 9,000,000 - Sandy Hill Trust 1,890,485 - - 1,890,485 - Landfill closure 94,371,263 - - 94,371,263 - Unspent bond proceeds - 20,728,603 - 20,728,603 -
Total restricted cash and investments 105,261,748 20,728,603 - 125,990,351 - Capital assets:
Land 11,306,081 15,738,396 - 27,044,477 1,000,000 Buildings and improvements 29,227,755 242,525 - 29,470,280 2,640,889
Accumulated depreciation (12,980,191) (242,525) - (13,222,716) (2,640,889) Improvements other than buildings 5,151,450 - - 5,151,450 328,014
Accumulated depreciation (3,721,018) - - (3,721,018) (328,014) Equipment 21,632,950 4,038,582 - 25,671,532 8,049,694
Accumulated depreciation (18,137,136) (3,770,233) - (21,907,369) (7,539,572) Landfill property in service 121,336,027 - - 121,336,027 -
Accumulated depreciation (109,723,403) - - (109,723,403) - Stormwater property in service - 198,098,975 - 198,098,975 -
Accumulated depreciation - (60,919,681) - (60,919,681) - Construction in progress 32,492,473 101,027,722 - 133,520,195 -
Total capital assets 76,584,988 254,213,761 - 330,798,749 1,510,122 Total noncurrent assets 181,846,736 274,942,364 - 456,789,100 1,510,122 Total assets 194,610,981 304,096,677 41,562,868 540,270,526 111,799,757
Deferred ouflow of resources: Pension deferrals 2,182,080 3,556,796 - 5,738,876 3,519,777 Deferred charge on refunding 26,348 169,293 - 195,641 -
Total current assets Total deferred outflow of resources 2,208,428 3,726,089 - 5,934,517 3,519,777
(Continued)
Exhibit A-6 PRINCE GEORGE'S COUNTY, MARYLAND
Statement of Net Position Proprietary Funds
June 30, 2016
Business-type Activities - Enterprise Funds
25
Exhibit A-6, Cont.
Governmental Non-Major Activities-
Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service
Liabilities Fund Fund Fund Total Funds Current liabilities:
Payable from unrestricted assets: Current portion of bonded debt $ 1,920,000 7,880,000 - 9,800,000 - Current portion of compensated absences and termination benefits payable 832,785 1,226,729 - 2,059,514 1,254,898 Current portion of notes payable 5,278 - - 5,278 - Current portion of estimated liability on pending claims - - - - 49,469,753 Current portion of postclosure liability 1,265,273 - - 1,265,273 - Accounts payable 6,878,749 9,348,743 308,096 16,535,588 9,667,369 Retainages 49,355 1,620,017 - 1,669,372 - Accrued liabilities 842,467 549,820 - 1,392,287 494,709 Unearned revenue - - - - 8,126,262 Matured bonds and interest payable - 2,155,241 - 2,155,241 - Deposits 83,713 - - 83,713 - Due to other funds 5,500,000 - - 5,500,000 - Total current liabilities 17,377,620 22,780,550 308,096 40,466,266 69,012,991
Long-term liabilities: 34,513,727 143,518,906 - 178,032,633 -
Notes Payable, less current portion 6,475,001 - - 6,475,001 - Compensated absences and termination benefits payable, less current portion 79,869 76,734 - 156,603 221,564 Net pension liability 8,436,237 13,892,451 - 22,328,688 14,066,350 Estimated liability on pending claims, less current portion - - - - 125,422,253 Estimated liability for landfill closure costs, less current portion 75,428,596 - - 75,428,596 - Total long-term liabilities 124,933,430 157,488,091 - 282,421,521 139,710,167 Total liabilities 142,311,050 180,268,641 308,096 322,887,787 208,723,158
Deferred inflow of resources: Deferred charge on refunding 7,424 - - 7,424 - Pension deferrals 504,334 803,414 - 1,307,748 789,755
Total current assets Total deferred outflow of resources 511,758 803,414 - 1,315,172 789,755
Net position: Net investment in capital assets 29,034,624 121,344,320 - 150,378,944 1,510,122 Restricted for capital improvements and future maintenance 9,000,000 - 41,254,772 50,254,772 - Restricted for Sandy Hill Trust 1,890,485 - - 1,890,485 - Restricted for landfill closure costs 17,677,394 - - 17,677,394 - Restricted for Chesapeake Bay and tree preservation activities - 1,457,801 - 1,457,801 - Restricted for I-Net - - - - 11,319,891 Unrestricted (3,605,902) 3,948,590 - 342,688 (107,023,392) Total net position $ 53,996,601 126,750,711 41,254,772 222,002,084 (94,193,379)
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (6,780,947) Net position of business-type activities 215,221,137$
See accompanying notes to financial statements.
Bonded debt, less current portion
Proprietary Funds June 30, 2016
Statement of Net Position, Continued PRINCE GEORGE'S COUNTY, MARYLAND
Business-type Activities - Enterprise Funds
26
PRINCE GEORGE'S COUNTY, MARYLAND Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
Business-type Activities - Enterprise Funds Governmental Non-Major Activities-
Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service Fund Fund Fund Total Funds
Operating revenues: Premium contributions $ - - - - 122,429,157 Licenses and permits - 3,803,795 - 3,803,795 - Sales 370,751 - - 370,751 26,900,195 Charges for services 94,280,553 - 14,611,404 108,891,957 12,692,077 Use of money and property - rentals - - - 165,331 Miscellaneous 728,954 - 99,518 828,472 2,317,147
Total operating revenues 95,380,258 3,803,795 14,710,922 113,894,975 164,503,907
Operating expenses: Salaries 7,275,759 11,170,053 - 18,445,812 9,432,340 Project charges - salaries/recoveries 8,626,741 9,174,280 - 17,801,021 - Fringe benefits 7,658,950 10,467,767 - 18,126,717 7,040,624 Contractual services 37,824,771 - - 37,824,771 8,198,843 Materials - - - - 10,577,866 Rent - - - - 326,625 General and administrative 26,550,612 15,128,981 1,164,724 42,844,317 9,936,545 Depreciation and amortization 11,126,883 3,911,027 - 15,037,910 133,899 Insurance claims and premiums - - - - 137,233,712 Landfill postclosure costs (6,407,602) - - (6,407,602) - Other - - - - 4,771,471
Total operating expenses 92,656,114 49,852,108 1,164,724 143,672,946 187,651,925 Operating income (loss) 2,724,144 (46,048,313) 13,546,198 (29,777,971) (23,148,018)
Nonoperating revenues (expenses): Taxes - 39,550,173 - 39,550,173 - Interest income 789,389 533,310 109,831 1,432,530 177,751 Interest expense (1,238,114) (5,177,593) - (6,415,707) - Debt issuance costs - (83,501) - (83,501) - Gain (loss) on sale of capital assets - - - - (9,864)
Total nonoperating revenues (expenses) (448,725) 34,822,389 109,831 34,483,495 167,887 Income (loss) before contributions and transfers 2,275,419 (11,225,924) 13,656,029 4,705,524 (22,980,131)
Capital contributions - 2,555,148 - 2,555,148 - Change in net position 2,275,419 (8,670,776) 13,656,029 7,260,672 (22,980,131)
Net position - beginning of year 51,721,182 135,421,487 27,598,743 (71,213,248)
Net position - end of year $ 53,996,601 126,750,711 41,254,772 (94,193,379)
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (271,718) Change in net position of business-type activities 6,988,954$
See accompanying notes to financial statements.
Exhibit A-7
For the year ended June 30, 2016
27
Governmental Non-Major Activities-
Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service Fund Fund Fund Total Funds
Cash flows from operating activities: Cash received from customers $ 94,072,966 3,803,795 14,416,972 112,293,733 163,778,028 Cash payments to suppliers for goods and services (64,206,360) (11,557,387) (1,074,244) (76,837,991) (100,728,584) Cash payments to employees for services (22,668,501) (29,184,142) - (51,852,643) (14,787,915) Premium and claim payments - - - - (45,064,701) Other cash receipts - - - - 665,333
Net cash and cash equivalents provided (used) by operating activities 7,198,105 (36,937,734) 13,342,728 (16,396,901) 3,862,161
Cash flows from noncapital financing activities: Tax collections - 39,605,619 - 39,605,619 - Transfers in from other funds - - - - 7,097,892 Transfers out to other funds - - - - (7,097,892)
Net cash and cash equivalents provided by noncapital financing activities - 39,605,619 - 39,605,619 -
Cash flows from capital and related financing activities: Acquisition and construction of property, plant and equipment (4,304,229) (29,622,860) - (33,927,089) (313,808) Capital grants - 1,765,478 - 1,765,478 - Proceeds of bonded debt 4,275,171 5,600,750 - 9,875,921 - Proceeds of notes payable 6,480,279 - - 6,480,279 - Payment to refund bond escrow agent (2,272,606) (5,517,250) - (7,789,856) - Payment of bond issue costs (25,549) (83,501) - (109,050) - Principal payments on bonded debt (3,555,000) (7,460,000) - (11,015,000) - Interest payments (1,487,735) (6,521,653) - (8,009,388) -
Net cash and cash equivalents used in capital and related financing activities (889,669) (41,839,036) - (42,728,705) (313,808)
Cash flows from investing activities: - Interest on investments 789,389 590,734 123,741 1,503,864 191,255
Net cash and cash equivalents provided by investing activities 789,389 590,734 123,741 1,503,864 191,255
Net increase (decrease) in cash and cash equivalents 7,097,825 (38,580,417) 13,466,469 (18,016,123) 3,739,608
Cash and cash equivalents, beginning of year 105,635,543 86,731,145 26,755,402 219,122,090 100,445,710
Cash and cash equivalents, end of year $ 112,733,368 48,150,728 40,221,871 201,105,967 104,185,318
Cash classified as: Current assets $ 7,471,620 27,422,125 40,221,871 75,115,616 105,913,120 Restricted assets 105,261,748 20,728,603 - 125,990,351 -
$ 112,733,368 48,150,728 40,221,871 201,105,967 105,913,120
(Continued)
Exhibit A-8 PRINCE GEORGE'S COUNTY, MARYLAND
Statement of Cash Flows Proprietary Funds
For the year ended June 30, 2016
Business-type Activities - Enterprise Funds
28
Governmental Non-Major Activities-
Solid Stormwater Watershed Protection Internal Waste Management and Restoration Service Fund Fund Fund Total Funds
Reconciliation of operating loss to net cash provided (used in) operating activities:
Operating income (loss) $ 2,724,144 (46,048,313) 13,546,198 (29,777,971) (24,868,125)
Adjustments to reconcile operating loss to net cash provided by (used in) operating activities: Depreciation and amortization 11,126,883 3,911,027 - 15,037,910 133,899 Provision for doubtful receivables (509,543) - - (509,543) - Pension Expense 922,164 1,594,860 - 2,517,024 1,717,151 Effect of changes in operating assets and liabilities:
Accounts receivable (1,099,039) - (293,950) (1,392,989) 473,989 Inventories - - - - (31,301) Prepaid costs - - - - (94,640) Compensated absences and termination benefits payable 27,748 24,813 - 52,561 (60,066) Accounts payable (207,114) 3,297,291 90,480 3,180,657 4,485,223 Retainages (123,863) 274,303 - 150,440 - Accrued costs (56,963) 8,285 - (48,678) 27,987 Due to other funds 500,000 - - 500,000 - Deferred revenue - - - - 5,288,293 Due from component units - - - - 341,893 Estimated liability for landfill closure costs (6,407,602) - - (6,407,602) - Estimated liability on pending claims - - - - 16,447,858 Total adjustments 4,473,961 9,110,579 (203,470) 13,381,070 28,730,286
Net cash and cash equivalents provided by (used in) operating activities $ 7,198,105 (36,937,734) 13,342,728 (16,396,901) 3,862,161
Decrease (increase) in accrued interest receivable $ 64,155 57,424 13,910 135,489 21,198 $ 64,155 57,424 13,910 135,489 21,198
Statement of Cash Flows, Continued
For the year ended June 30, 2016
Business-type Activities - Enterprise Funds
Exhibit A-8, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Proprietary Funds
29
Exhibit A-9
Pension and Other Postemployment Agency
Benefit Trust Funds Funds
Assets: Equity in pooled cash and investments $ 6,763,461 12,756,779$ Collateral for loaned securities 26,497,460 - Investments:
Pooled separate accounts 463,391,449 - U.S. Government & agency securities 27,790,863 - Corporate bonds 63,105,198 - Common stock 218,027,651 - Real estate investment trust 5,410,969 - International Government securities 816,278 - Preferred stock 195,351 - Asset backed securities 21,921,063 - Money market funds 420,438,542 - Short-term investments 17,673,335 - Alternative investments 452,844,109 -
Receivables: Taxes - 5,756,218 Accounts 60,593 94 Accrued interest receivable 1,413,583 - Prepaid costs and deposits 66,475 - Total assets 1,726,416,380 18,513,091$
Liabilities: Collateral for loaned securities payable 26,497,460 - Accounts payable 1,036,202 169,010 Accrued costs 12,788,039 - Due to other governmental units - 15,107,861 Funds held in trust - 3,236,220 Total liabilities 40,321,701 18,513,091$
Net position: Net position restricted for pensions and other post-employment benefits $ 1,686,094,679
See accompanying notes to financial statements.
PRINCE GEORGE'S COUNTY, MARYLAND Statement of Fiduciary Net Position
Fiduciary Funds June 30, 2016
30
Exhibit A-10
Pension and Other Postemployment
Benefit Trust Funds Additions:
Contributions: Employer 156,398,353$ Employee 35,601,082 Other 1,226,831 Total contributions 193,226,266
Investment income: Net depreciation in fair value of investments (63,864,748) Interest and dividends 42,466,113 Total investment income (loss) (21,398,635) Less investment expense 6,196,913 Net investment loss (27,595,548)
Total additions 165,630,718
Deductions: Benefits 214,733,830 Refunds of contributions 4,121,765 General and administrative expenses 3,101,553
Total deductions 221,957,148
Net decrease (56,326,430)
Net position restricted for pensions and other post-employment benefits Beginning of year 1,742,421,109
End of year 1,686,094,679$
See accompanying notes to financial statements.
PRINCE GEORGE'S COUNTY, MARYLAND Statement of Changes in Fiduciary Net Position
Fiduciary Funds For the year ended June 30, 2016
31
- THIS PAGE NOT USED -
32
NOTES TO FINANCIAL
STATEMENTS
The notes are an integral part of the financial statements.
Prince George's County, Maryland Notes Financial Statements
33
Reference Subject Page
Footnote 1 Summary of Significant Accounting Policies
a. Reporting Entity 36
b. Basis of Presentation 37
c. Basis of Accounting 38
d. Budgetary Data 39
e. Cash and Cash Equivalents 40
f. Investments 40
g. Allowance for Uncollectible Receivables 41
h. Inventories 41
i. Prepaid Costs and Deposits 41
j. Restricted Assets 41
k. Capital Assets 42
l. Self-Insurance Funds 42
m. Arbitrage Rebate Liability 42
n. Long-Term Obligations 43
o. Net Position and Fund Balance 43
p. Revenues, Expenditures, and Expenses 44
q. Use of Estimates 45
r. Total Column Government-wide Statement of Net Position 45
Prince George's County, Maryland Notes Financial Statements
34
Footnote 2 New Accounting Pronouncements 45
Footnote 3 Compliance and Accountability 45
Footnote 4 Cash and Investments 45
Footnote 5 Interfund Receivables, Payables, and Transfers 56
Footnote 6 Due From Other Governmental Units 57
Footnote 7 Capital Assets
a. Governmental Activities 57
b. Business-type Activities 59
c. Component Units Capital Assets Activity 62
Footnote 8 Risk Management 63
Footnote 9 Pension and Other Post Employment Benefit Plans
a. Primary Government 65
b. Component Units 72
Footnote 10 Postemployment Benefits Other Than Pensions 73
Footnote 11 Unavailable and Unearned 76
Footnote 12 Deferred Compensation Plans 76
Prince George's County, Maryland Notes Financial Statements
35
Footnote 13 Long-term Liabilities
a. Outstanding Long-term Liabilities 77
b. Bonded Debt Transactions 77
c. Debt Service Requirements 78
d. Bonded Debt Details 78
e. Bond Additions 79
f. Bond Authorizations 79
g. Advance Refunding 80
h. Prior Period Defeasance of Debt 80 Footnote 14 Conduit Debt Transactions 81
Footnote 15 Special Taxing District 82
Footnote 16 Other Long-term and Short-term Debt 83
a. Capital Lease Obligations 83
b. Pension and OPEB Obligations 84
c. Compensated Absences and Termination Benefits 84
d. Notes Payable 86
Footnote 17 Fund Balance Policy and Reporting 88
Footnote 18 Encumbrances 90
Footnote 19 Summary Disclosure of Significant Contingencies
a. Litigation 90
b. Contingent Liabilities 90
c. Operating Leases 91
Footnote 20 Joint Ventures 91
Footnote 21 Jointly Governed Organization 92
Prince George's County, Maryland Notes Financial Statements
36
(1) Summary of Significant Accounting Policies
The accounting policies of Prince George's County, Maryland (the County) conform to accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The following is a summary of the County’s significant accounting policies:
(a) Reporting Entity
The County is a body corporate and politic founded in 1696 as a political subdivision of the State of Maryland, which performs all local government functions within its jurisdiction. The County operates under a "home rule" Charter adopted in November 1970. Under the Charter, the County is governed by an elected County Executive and nine-member County Council.
As required by GAAP, the accompanying financial statements include various departments and agencies of the Primary Government and the County's component units, entities for which the County is considered to be financially accountable because of the significance of their operational or financial relationship with the County.
The government-wide financial statements include a separate column for the Board of Education of Prince George's County, Maryland and a separate column combining all other discretely presented component units. Each component unit is legally separate from the Primary Government and has a June 30 fiscal year end. There are no blended component units, i.e., legally separate component units whose financial information is combined with the operations of the Primary Government, included in this financial report. A description of the County's eight discretely presented component units follows:
(i) The Board of Education of Prince George's County, Maryland (Board of Education or the Board) - The Board operates all public schools (grades K through 12) within the
County. The Board is fiscally dependent because the County: approves its budget, is legally obligated to fund the Board's operations, and issues and is obligated to pay debt for the Board. A complete financial report is available through the Board's administrative offices, which are located at the Sasscer Administration Building, 14201 School Lane, Upper Marlboro, Maryland 20772.
(ii) The Housing Authority of Prince George's County (Housing Authority) - The Housing Authority was created to develop safe, sanitary, and decent housing for County citizens.
The governing body and management personnel are appointed by the County Executive. The County also approves the budget of the Housing Authority. Requests for copies of financial statements should be addressed to the administrative offices of the Housing Authority, which are located at Inglewood Center III, 9400 Peppercorn Place, Suite 200, Landover, Maryland 20785.
(iii) The Industrial Development Authority of Prince George's County (IDA) - The IDA is a public building authority providing physical facilities to local governments located in the
State of Maryland. The County appoints a majority of the governing body and is able to impose its will through approval of the IDA's budget and substantial involvement in IDA operations. Requests for copies of financial statements should be addressed to the administrative offices of the Industrial Development Authority, which are located at 14741 Governor Oden Bowie Drive, Suite 3151, Upper Marlboro, Maryland 20772.
(iv) The Prince George's County Memorial Library System (Memorial Library or Library) - The Memorial Library operates the County's public library system. The County is legally
obligated to provide financial support to the Library. The County approves its budget, holds title to its assets, and can unilaterally abolish the Library. Requests for the Library's financial statements should be made to the administrative offices, which are located at 6532 Adelphi Road, Hyattsville, Maryland 20785.
(v) The Prince George's Community College (Community College or College) – The College operates a higher education institution within the County. The County is legally
obligated to provide financial support to the College. In addition, the fiscal dependency criterion applies because of the County's substantial budgetary approval authority. Individuals interested in obtaining detailed financial statements for the College should contact its administrative offices, which are located at 301 Largo Road, Landover, Maryland 20772.
Prince George's County, Maryland Notes Financial Statements
37
(vi) The Prince George's Community Television, Inc. (PGCT) - PGCT operates local government public access channel programming for cable television operations. The County
appoints a majority of the governing body and imposes its will over PGCT operations. PGCT is fiscally dependent on the County (i.e., the County has substantive approval authority over the budget, sets fees, and prohibits debt issuances.) A full set of financial statements is available at PGCT's administrative offices, which are located at 9475 Lottsford Road, Suite 125, Landover, Maryland 20785.
(vii) The Redevelopment Authority of Prince George’s County (Redevelopment Authority) - The Redevelopment Authority was created to provide residential, commercial, and
industrial development or redevelopment within County boundaries. The County appoints a majority of the governing body and is able to impose its will through approval of the Redevelopment Authority's budget and substantial involvement in Redevelopment Authority operations. Requests for copies of financial statements should be addressed to the administrative offices of the Redevelopment Authority, which are located at 9201 Basil Court, Suite 155, Largo, Maryland 20774.
(viii) The Revenue Authority of Prince George’s County (Revenue Authority) - The Revenue Authority was created to develop projects within the boundary lines of the County
devoted wholly or partially for public uses and to stimulate employment and economic growth. The Revenue Authority is also responsible for the acquisition, construction, and operation of parking and related facilities for motorized and non-motorized vehicles within the County. The County appoints a majority of the governing body and is able to impose its will through approval of the Revenue Authority’s budget and substantial involvement in Revenue Authority operations. Additionally, the County must approve and is responsible for all bonded debt issuances. Requests for financial statements should be directed to the Revenue Authority's administrative offices, which are located at 1300 Mercantile Lane, Suite 108, Landover, Maryland 20785.
As discussed in Note 20, the Washington Suburban Sanitary Commission, Washington Suburban Transit Commission, Washington Metropolitan Area Transit Authority, and the Maryland-National Capital Park and Planning Commission are not part of the reporting entity, but rather are considered joint ventures for financial reporting purposes.
(b) Basis of Presentation
Government-wide Statements: The statement of net position and the statement of activities report non-fiduciary financial activity of the County and its component units. The majority of inter-fund activity is eliminated from the statements. Governmental activities, which are mainly supported by tax revenues, are reported separately from business- type activities, which rely on fee charges to external parties. Additionally, the primary government is reported separately from its component units. The statement of activities compares direct expenses and program revenues for distinct activities and for each of the County’s governmental and business-type activities. Direct expenses are those that are specifically related to a program or function. Program revenues include (1) fees and charges for services generated by programs and (2) grants and contributions restricted to a particular program. All taxes and other items not included as program revenues are reported as general revenues. Fund Financial Statements: Fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. The focus is on major governmental and enterprise funds, which are reported in separate columns in the fund financial statements. The remaining governmental funds are combined and reported as non-major funds. The County reports the following major governmental funds:
General Fund - The General Fund is the County's primary operating fund. It accounts for all financial resources except those required to be accounted for in another fund.
Federal and State Aided Programs - This Special Revenue Fund accounts for direct financial assistance received by the County through categorical grants from Federal and State agencies.
Capital Projects Fund - The Capital Projects Fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by proprietary or fiduciary funds.
Prince George's County, Maryland Notes Financial Statements
38
The County reports the following major proprietary funds:
Solid Waste – This fund accounts for the disposition of refuse, garbage, rubbish, or any other matter to ensure the public health of the inhabitants of the County. The fund also covers programs and activities associated with solid waste management, environmental protection, and recycling and clean-up of the environment. Stormwater Management Fund – This fund accounts for the servicing of County stormwater management facilities including floodplain maintenance, stormdrain maintenance, and a variety of rehabilitation, repair and maintenance contracts for open channels, ditches, and flood channels.
The County also reports the following additional funds: Non-Major Enterprise Fund - The Watershed Protection and Restoration Fund This fund was established July 1, 2013 in accordance with provisions of Maryland House Bill 987. The fund accounts for the services rendered to complete water quality and flood control management improvements. Tis fund is reported as a non-major enterprise fund. Internal Service Funds - Internal Service Funds are proprietary funds that account for vehicle maintenance, information technology, and risk management services to other departments or agencies of the County, or to other governmental units, on a cost-reimbursement basis. Internal Service Fund accounting is similar to enterprise funds; however for government-wide reporting the activity is mostly included with governmental activities because they predominantly serve the governmental funds. Trust Funds - Trust Funds are fiduciary funds out of which retirement annuities and/or benefit payments are paid and designated to public employees. Agency Funds – These fiduciary funds account for money held on behalf of other governmental entities for taxes collected by the County and deposits held for inmates.
(c) Basis of Accounting
Government-wide, Proprietary and Trust Funds are accounted for using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recognized when earned and expenses are recorded at the time liabilities are incurred.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the
business-type and governmental funds of the County. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Stormwater Management Fund, Solid Waste Fund and of the government’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are
needed. Furthermore within the unrestricted fund balance the County will apply expenditures against committed, then assigned, and then unassigned amounts.
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Governmental funds are used to account for the County's general government activities. Governmental funds use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The County considers most revenues available if they are collected within 60 days after year-end. Expenditures generally are recorded when the related liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded when payments are due. Property taxes, interest, charges for services, and special assessments are susceptible to accrual. Other receipts and taxes become measurable and available when cash is received by the County and are recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the “susceptible to accrual” criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.
Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting.
The County reports unearned revenue in its financial statements. Unearned revenues arise in governmental funds when the County receives resources before it has a legal claim to them, as when grant monies are received prior to the occurrence of qualifying expenditures. In subsequent periods when the County has a legal claim to the resources, the liability for unearned revenue is removed and revenue is recognized. Unearned revenue is also reported in the government-wide statements. The County reports deferred inflows and outflows of resources as separate financial statement elements. Deferred outflows of resources are the consumption of net position applicable to a future period. While deferred inflows of resources are the acquisition of net position applicable to a future period. The government-wide and proprietary fund financial statements report both deferred outflows and inflows of resources relating to debt refunding and pension costs. The governmental funds report deferred inflows relating to unavailable tax revenue.
(d) Budgetary Data
The Prince George's County Charter requires that certain transactions be accounted for on a basis other than GAAP. Actual results of operations are presented in the Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual for the General Fund in accordance with legislative requirements, in order to provide a meaningful comparison of actual results with budget estimates. Under the budgetary basis, encumbrances are recorded as the equivalent of expenditures, as opposed to only a restriction, assignment, or commitment of fund balance (GAAP basis). This treatment of encumbrances represents one of two material differences between the GAAP and budget basis. The other significant difference relates to the presentation of purchase agreement financing transactions. These transactions represent equipment or real estate lease purchase contracts where an escrow account is maintained under a three-party agreement between the County, the leasing company, and the fiscal escrow agent, who controls the receipt of the financing proceeds and disbursements for equipment and real estate purchases. Under the GAAP basis, both the purchases and periodic principal and interest payments on the financing must be recorded; however, under the budgetary basis, only the principal and interest payments are recorded.
The County follows these procedures in establishing the budgetary data reflected in the financial statements:
x Agency budget requests are normally due to the Office of Management and budget prior to mid-November.
x Prior to January 15, the Component Units submit to the County Executive a proposed budget for the fiscal year commencing the following July 1. x Prior to April 1, the County Executive submits to the County Council a proposed operating budget for the County, which includes the needs of the Component Units for
the upcoming year. The operating budget includes proposed expenditures and the means of financing them.
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x Public hearings are conducted by the County Council to obtain taxpayer comments. x Prior to June 1, the budget is legally enacted through passage of an ordinance.
x The appropriated budget is prepared by fund and by object within an agency. The County Executive is authorized to transfer budgeted amounts within an agency within
any fund; however, the County Council must approve any revisions that alter the total expenditures of any agency or fund. No agency of the Primary Government shall during any fiscal year expend, or contract to expend, in excess of the amounts appropriated in the budget for such fiscal year. The level of budgetary control (level at which expenditures/expenses are monitored) is maintained at three major object classifications: compensation, other current expenditures/expenses (which include debt service payments, expenditure recoveries, and operating transfers out), and capital outlays. The legal level of control is exercised at the agency level in the General Fund. No County liability shall be incurred or contracted by any department, agency, or employee, and no bill or invoice shall be approved or paid, unless the Council has authorized by budget adoption or a specific appropriation to cover payment out of public funds. Any person willfully violating this provision shall be deemed to be responsible for the contract, debt, or expenditure. The agency head allowing such action shall be subject to such disciplinary action as the Council shall determine.
x Subsequent to passage of the budget ordinance, the County Council may approve supplemental appropriations. During fiscal year 2016, such appropriations amounted
to a $8.9 million increase in the Primary Government’s General Fund budget (major fund).
x All unencumbered appropriations in the General Fund lapse at the end of the fiscal year.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual for the General Fund is located included in Exhibit A-5. The following funds of the Primary Government have legally adopted annual budgets:
General Fund Nonmajor governmental funds:
Domestic Violence Fund Drug Enforcement and Education Fund
Although budgets are not legally adopted for all Special Revenue Funds of the County, budgetary control is exercised. The Federal and State Aided Programs Fund's expenditures are limited to the amount awarded for the associated grant programs.
Expenditures in the Debt Service Fund are limited by authorized transfer amounts from other funds. Capital Projects Funds are appropriated at the project level. Annual operating budgets are not prepared for the Debt Service or Capital Projects Funds.
(e) Cash and Cash Equivalents
For Statement of Cash Flows purposes, the Primary Government defines cash equivalents to include the following: all highly liquid, unrestricted investments with a maturity of three months or less when purchased; all cash and investment pools which are used essentially as demand accounts; all cash with fiscal agents; and all restricted cash and investments have been determined to be cash equivalents.
(f) Investments
Investments of the Primary Government and trust funds are recorded at amortized cost or fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation inputs used to measure the fair value of the asset as detail in Note 4.
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(g) Allowance for Uncollectible Receivables
The County calculates its allowance for uncollectible receivables using historical collection data and, in certain cases, specific account analysis. The total allowance amounts are summarized below:
Primary Government: General Fund 12,223,883$ Federal and State Aided Fund 20,596,595 Solid Waste Fund 279,126 Stormwater Management Fund 35,126
33,134,730$
As part of the County's Community Development Block Grant and Rental Rehabilitation federal financial assistance programs, the County makes loans to residents and developers to restore and repair low-income housing units. At June 30, 2016, there was approximately $35.5 million of outstanding loans receivable under these programs. Approximately $14.9 million of these loans are offset by equivalent unearned revenue in the Federal and State Aided Programs Special Revenue Fund. The remaining $20.6 million is completely offset by an allowance for uncollectible notes receivable (included in the table above), because collections are highly uncertain. In many cases, the County has agreed to forgive loan repayment if the resident/developer complies with certain requirements that may include residing in the property for a certain number of years.
(h) Inventories
Inventories, consisting of expendable items held for consumption, are stated at the lower of cost (first-in, first-out method) or market or at average cost, which approximates the first-in, first-out method of costing. The consumption method is used and the cost of such items is recognized as an expense or expenditure when used in operations.
(i) Prepaid Costs and Deposits
Payments made to vendors for services that will benefit periods beyond June 30, 2016 are recorded as prepaid expenses. The consumption method is used for prepaid items and expenditures or expenses are recognized when used in operations.
(j) Restricted Assets
Proceeds from debt and funds set aside for payment of revenue bonds and other general obligation debt are classified as restricted assets since there use is limited by applicable debt agreements.
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(k) Capital Assets
Capital assets which include land, buildings, equipment, and infrastructure assets (e.g. road networks, bridges, stormwater property, and similar items) are recorded at cost and as governmental or business-type activities in the government-wide financial statements. The County defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Contributed capital assets are recorded at estimated fair market value at the time received. Assets recorded under capital lease agreements are recorded at the lower of fair value or the net present value of minimum lease payments on the date of the lease inception. Interest is capitalized on assets acquired or constructed with tax-exempt debt. The amount of interest capitalized is calculated by offsetting interest expense incurred from the date of borrowing until installation or completion of the project with interest earned on invested proceeds over the same period.
The costs of normal maintenance and repairs that do not materially extend the assets’ useful lives are not capitalized.
Depreciation is recorded over the following estimated useful lives using the straight-line method:
Land improvements 10 - 20 years
Buildings and plant improvements 3 - 50 years
Stormwater property in service 50 years
Equipment and machinery 3 - 20 years
Bridges 50 years
Road Networks 60 years
The Primary Government's landfill facility at Brown Station Road has completed expansion of the construction of eleven new treatment areas referred to as "cells." Nine cells are currently operational. The total estimated cost of the operational cells was transferred from construction-in-progress to landfill property in service based on the total acreage of the operational cells as a percentage of the total landfill acreage multiplied by total estimated costs of the entire facility. Depreciation is computed by dividing the number of tons of refuse dumped by total estimated landfill capacity, which is then multiplied by the estimated total landfill cost. An independent engineer estimates the total capacity of the landfill as 11,231,652 tons.
(l) Self-Insurance Funds
Included in the estimated liability for pending claims are estimates of incurred but not reported claims and incremental claims adjustment expenses for all lines of coverage.
(m) Arbitrage Rebate Liability
This liability represents the excess investment earnings on unspent bond proceeds over the bond yield, in accordance with the Internal Revenue Code of 1986 as amended. The County has no liability for fiscal year 2016.
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(n) Long-term Obligations
(i) Long-term Debt
In the government-wide financial statements and the proprietary fund financial statements, long-term obligations are reported as liabilities in the applicable, governmental activities, business-type activities, or proprietary fund type statement of net position. For long-term obligations, only that portion expected to be financed from current available financial resources is reported as a fund liability of a Governmental Fund. Long-term liabilities to be financed from proprietary fund operations are accounted for in those funds.
(ii) Bond Premiums/Discounts and Issuance Costs
Bond premiums and discounts for government-wide and proprietary fund financial statements are deferred and amortized over the term of the bonds using the bonds- outstanding method, which approximates the effective interest method. Bond premiums or discounts are reported as a net addition or reduction of the face amount of bonds payable. Bond issuance costs are recorded as debt service expenses in the year of issuance. In the governmental funds financial statements, bond premiums and discounts are recognized in the current period. Issuance costs, whether or not withheld from actual debt proceeds, are reported as debt service expenditures.
(iii) Bond Covenants
The various bond indentures contain significant limitations and restrictions on annual debt service requirements, maintenance and flow of monies through various restricted accounts, minimum amounts to be maintained in various sinking funds, and minimum revenue bond coverages. The County is in compliance with all bond covenants.
(o) Net Position and Fund Balance
Net position includes three categories: Net investment in capital assets; restricted net position; and unrestricted net position. Net investment in capital assets consists of capital assets, less accumulated depreciation, reduced by net outstanding debt related to capital assets. Restricted net position is restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted net position is the remaining residual balance. The County reports fund balance in various governmental funds. The fund balance categories are listed below:
¾ Nonspendable – Includes amounts that cannot be spent because they are in nonspendable form (i.e. inventory) or contractually required to remain intact. ¾ Restricted - Includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling
legislation. ¾ Committed - Includes amounts that can be used only for the specific purposes. The County Council as the highest level of decision-making authority within the
County establishes the commitment of fund balance through the approval of the subsequent year’s annual budget and appropriations ordinance by Council Bill. The same formal action (Council Bill) used to create a commitment is required to rescind or modify it.
¾ Assigned – Includes government’s intent to use for specific purposes but does not meet the criteria to be classified as restricted or committed. County Council Resolution CR-36-2011 granted the authority to assign fund balance in the General Fund to a three person committee consisting of the Director of the Office of Management and Budget, or their designee, the Director of Finance or their designee, and the County Council Administrator, or their designee.
¾ Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. In other funds, the unassigned classification can be used only to report a deficit balance.
¾ When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are needed, except for capital projects which use unrestricted resources first. Furthermore within the unrestricted fund balance the County will apply expenditures against committed , then assigned , and then unassigned amounts.
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(p) Revenues, Expenditures, and Expenses
(i) Property Tax Revenue Recognition
The County's real property taxes are due and payable on the first day of July each year, the levy date and the date on which an enforceable lien attaches to the property.
Levies are based on assessments as certified to the County by the State of Maryland Department of Assessments and Taxation. Certain bills are eligible for semi-annual payments. Annual bills and the first installment of semi-annual bills are due on or before September 30th and become delinquent on October 1st. The second semi- annual installment is due on or before December 31st and becomes delinquent on January 1st. Delinquent taxes are subject to interest and penalty at the monthly rate of 1.67% until paid in full. Personal property and real property taxes levied for fractions of a year are due when billed and are overdue within 30 days of billing. General property taxes receivable, net of the allowance for uncollectibles of $11,488,705, amounted to $4,282,416.
Property on which taxes remain in a delinquent status as of the second Monday in May is placed for tax sale. At the November 1978 General Election, the voters of the County adopted an amendment to the Charter limiting future collection of real property taxes to the amount
collected in fiscal year 1979. The amendment, which became effective in December 1978, added Section 817B to the Charter. It is generally referred to as "TRIM" (TRIM is an acronym for Tax Reform Initiative by Marylanders). An amendment to TRIM was approved by the voters of the County at the November 1984 General Election, authorizing the Council to levy taxes beginning in 1986 on a maximum rate basis as an alternative to the maximum amount basis. The maximum rate authorized was two dollars and forty cents ($2.40) for each one hundred dollars ($100) of assessed value. Beginning in fiscal year 1992, the Court of Appeals upheld the authority of the County to increase the tax rate to pay principal and interest on bonds outstanding prior to the effective date of "TRIM". Prior to fiscal year 2002, real property in the County was assessed at 40% of the phased-in market value. Pursuant to a change in State law, real property in fiscal year 2002 was assessed at 100% of the phased-in market value. For fiscal year 2016, the tax rate was set at ninety-six cents ($0.96) and two dollars forty cents ($2.40) for each one hundred dollars ($100) of assessed value for real and personal property, respectively. There were no bonds outstanding issued before the effective date of “TRIM”.
(ii) Landfill Operations - Primary Government
x Revenue Recognition
The revenue of the County’s landfill operations reported in the Solid Waste Enterprise Fund is based upon service rates authorized by the County Council. These
rates are intended to produce revenue approximately equal to costs similar to certain types of regulated enterprises. Therefore, the Solid Waste Enterprise Fund follows accounting guidance for regulated enterprises.
x Closure and Post-closure Care Costs
The October 9, 1991 U.S. Environmental Protection Agency rule, "Solid Waste Disposal Facility Criteria", establishes certain closure and thirty (30) year
postclosure care requirements affecting municipal solid waste landfills. In accordance with GAAP, the County accrues for closure and post-closure costs related to its landfill operations. Consistent with accounting policies for regulated enterprises, the recognition of closure and post-closure care costs otherwise chargeable to expense have been deferred because it has been determined that future estimated revenue in an amount at least equal to the deferred cost will result from inclusion of those amounts in allowable costs for rate-making purposes, and that future revenue will be sufficient to permit recovery of the previously incurred cost as well as to provide for expected levels of similar future costs. The deferred landfill closure costs are recognized to the extent that designated revenues are collected. In fiscal year 2016, $12.00 per ton of solid waste dumped was designated for closure and postclosure costs.
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(q) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses or expenditures during the reporting period. Actual results could differ from those estimates.
(r) Total Column Government-wide Statement of Net Position
The total column for the reporting entity includes a reclassification for the unrestricted net position deficit related to component unit debt ($503,035,085). The reclassification
is necessary because the County issues debt to finance construction projects for its component units (Board of Education and Community College); however, the component units own the assets. The debt reduces unrestricted net position for the County, while the capital assets are reported in net position invested in capital assets, net of related debt by the component units.
(2) New Accounting Pronouncements
The County implemented GASB Statement No. 72, “Fair Value Measurement and Application.” This statement addresses accounting and financial reporting related to fair value measurements and revises the related note disclosures. The changes to the note disclosures are reflected in the County’s financial statements presentation.
(3) Compliance and Accountability
Net Position Deficit - Primary Government - Internal Service Fund – Workers’ Compensation The Primary Government's Workers’ Compensation Internal Service Fund's net deficit at June 30, 2016 was $123,093,574. The County’s risk management contributions decreased by $0.6 million during fiscal year 2016. Expenditures increased by $2.6 million driven by a $4.4 million increase in the estimated liability for pending claims. The County will continue to increase premium contributions and reduce certain administrative costs in future fiscal years to reduce this deficit.
(4) Cash and Investments
(a) Investment Policy
The Primary Government’s investment policy’s primary objective for the management of the County’s funds is the protection of investment principal in the overall portfolio through the use of diversification and third-party collateralization while maintaining sufficient liquidity to meet all cash flow requirements. The secondary objective is to maximize investment return consistent with risk limitations. The Primary Government maintains a cash and investment pool that is available for use by all funds. Each fund’s share of this pool is displayed as "Cash and investments” (restricted and unrestricted). Investment income is allocated to all funds based on the percentage of the fund's cash and investments at month-end to the total pool, with the exception of income on bond proceeds, which is allocated to the General Fund pursuant to certain legal provisions. The Component Units maintain separate bank accounts covered by Federal depository insurance or collateral held by the banks in the entity's name. Details of the component units’ investment policies are included in their individual financial statements and are available to the general public [see note 1(a)]. In addition, investments are separately held by several funds. Statutes authorize the County to invest in obligations of the U.S. Treasury, agencies and instrumentalities; interest bearing accounts; certificates of deposit; repurchase agreements; bankers' acceptances, money market accounts, and the State's investment pool. Statutes require that deposits, interest bearing accounts, certificates of deposit, and repurchase agreements be fully collateralized.
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The Primary Government, the Board of Education, the Revenue Authority, and the Memorial Library participate in the Maryland Local Government Investment Pool (MLGIP). The MLGIP is an external investment pool that is not subject to regulation by the Securities and Exchange Commission (SEC). The State Legislature created the MLGIP within the annotated code of Maryland. The MLGIP, under the administrative control of the State Treasurer, is managed by PNC Institutional Investments. An MLGIP Advisory Committee of current participants was formed to review, on a semi-annual basis, the activities of the Fund and to provide suggestions to enhance the Pool. The reported value of the County’s position in the pool is the same as the fair value of the pool shares. The MLGIP was established under the Annotated Code of Maryland and is rated AAAm by Standard and Poors, their highest rating for money market funds. MLGIP is a 2a7 like pool, which is not registered with the Securities and Exchange Commission (SEC), but generally operates in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940 (Rule 2a7). Unit value is computed using the amortized cost method and maintains a $1 per share value. The County categorizes its fair value measurements with the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. • Level 1 – Valuations based on unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets or identical assets or liabilities in less active markets, such as dealer or broker markets; and • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as pricing models, discounted cash flow models and similar techniques not based on market, exchange, dealer or broker-traded transactions. The Primary Government had the following recurring fair value measurements as of June 30, 2016 (in thousands):
Quoted Prices in Active Markets for Identical Assets
Significant Other Observable Inputs
Significant Unobservable
Inputs Balance as of June
30, 2016
(Level 1) (Level 2) (Level 3) Investments by fair value level:
US Agency Securities -$ 168,284 - 168,284$
Investments carried at amortized cost: Certificates of Deposit 130,993 Money Market Funds 15,695 Maryland Local Government Investment Pool 425,872
740,844$
Debt securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities.
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The OPEB Plan had the following recurring fair value measurements (in thousands):
Level 1 Level 2 Level 3 Balance as of June 30, 2016
Equity in pooled cash and investments -$ 1,684 - 1,684$
Investments carried at amoritized cost: Money Market Funds 2,503$
Investments carried at the Net Asset Value (NAV): Common Trust Funds 48,822
Total investments 51,325$
The valuation method for investments measured at the net asset value (NAV) per share (or its equivalent) is presented on the following table (in thousands).
Common Trust Funds - Fixed Income Fund 30,513$ - Daily 1-2 days Common Trust Funds – Equity Funds 16,208 - Daily 1-2 days Common Trust Funds - Real Estate Funds 2,101 - Daily 1-2 days Total 48,822$ -
Investment Fair Value Unfunded
Commitments Redemption Frequency
Redemption Notice Period
Equity in pooled cash and investments is comprised of shares or units in the Prince Georges County cash pool, which are valued at its respective share of pooled cash and investments. Common Trusts-Real Estate Fund consists of an investment in one trust; the objective of the fund is to approximate the performance of the Dow Jones U. Select REIT Index. This investment is valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities. Common Trusts-Equity Funds consist of investments in eight investment trusts. The Funds’ investment objectives are to seek long-term capital appreciation through investing in other investment funds based on a custom index. These investments are valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities.
Common Trusts-Fixed Income Funds consist of investments in six investment trusts, the objectives of these fund is to approximate the performance of the Barclays U.S. Treasury Inflation Protects Securities, Barclays U.S. Long Credit Bond and Barclays high Yield $200 Million Very Liquid Indexes. These investments are valued at the net asset value (NAV) of units of the collective trust. The NAV, as provided by the trustee, is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liabilities.
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The Pension Plans had the following recurring fair value measurements (in thousands):
Quoted Prices in Active Markets for Identical Assets
Significant Other Observable Inputs
Significant Unobservable
Inputs Balance as of June 30, 2016
(Level 1) (Level 2) (Level 3) Equity in pooled cash and investments - 5,079 - 5,079
Investments by fair value level: U.S. Government and agency securities - 32,924 - 32,924 Corporate bonds - 89,773 - 89,773 Common stock 218,893 123,877 - 342,770 Real Estate Investment Trust 5,411 2,696 - 8,107 Mutual Funds 417,935 93,225 - 511,160 Foreign Currency 816 820 - 1,636 Other international investments 195 - - 195 Asset-backed securities - 43,899 - 43,899
643,250 387,214 - 1,030,464 Investments carried at amortized cost:
Short-term investments 25,051
Investments carried at Net Asset Value (NAV): Hedge Funds 162,019 International Equity Funds 70,167 Private Debt 45,311 Private Equity 142,007 Natural Resources 42,123 Real Estate 123,147
584,774 Total Investments 1,640,289
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The valuation method for investments measured at the net asset value (NAV) per share (or its equivalent) is presented on the following table.
Investment Fair Value Unfunded
Commitments Redemption Frequency
Redemption Notice Period
Hedge Funds 162,019$ -$ See note (A) International Equity Funds 70,167 - Monthly 15 days Private Debt 45,311 - 4-10 years N/A Private Equity 142,007 - See note (B) 5-10 days Natural Resources 42,123 34,381 7-15 years N/A Real Estate 123,147 14,167 See note (C) 30-90 days
584,774$ 48,548$
(A ) - Redemptio n frequency fo r these assets are either mo nthly, quarterly, o r annually. Redemptio n no tice perio ds also range fro m 2 to 90 days with asset requiring an annual no tice.
(B ) - Redemptio n frequency fo r these assets are either mo nthly, quarterly, o r decenial with several investment requiring 7-10 years.
(C ) - Redemptio n frequency fo r these assets are either mo nthly, quarterly, o r decennial, with several investments requiring 8-10 yearss.
International equity fund consist of one investments that’s invests in non-US developed markets with select exposure to emerging markets Hedge Funds consist of approximately 12 investments in limited partnerships that invest in hedge fund strategies that seek alpha in equity of credit makers. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund.
Private Equity Funds consist of approximately 33 investments in limited partnerships The private equity investments span the venture capital, growth equity, fund of funds, energy and buyout strategies. Private equity is considered an illiquid investment strategy as funds generally have a life span of seven to 10 years. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund. Private Debt Funds consists of 16 investments in limited partnerships. The private debt investments span direct lending, distressed, energy, mezzanine, mortgages, opportunistic and other strategies. Private debt is considered an illiquid investment strategy as funds generally have a life span of seven to 10 years. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund. Natural resource funds include 10 investments in limited partnerships in the energy and natural resources industries. Distributions are received as the partnerships liquidate the underlying assets. Real Estate Funds consists of 11 investments in limited partnerships that invest in income producing equity securities of U.S and International real estate. Real is considered an illiquid investment strategy as funds generally have a life span of seven to 10 years. The nature of investments in this type is that distributions are received through the liquidation of the underlying assets of the fund. The fair values of the investments in this type have been determined using percent ownership of the NAV of the fund.
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The Pension Plans of the Primary Government have separate investment policies that are set by each Pension Plan’s Board of Trustees to assure overall diversification of investments. Custody of Plan assets is maintained at financial institutions selected by each Board, but the responsibility for selection of specific investments is delegated to appointed investment managers. The Policy seeks to achieve a long-term rate of return on investments, net of expenses that exceed benchmarks established by the investment committee and maintains sufficient income and liquidity to pay monthly retirement benefits. For the Police and Fire Pension Plans, the policy establishes a strategic target for asset allocation among equity securities (45%), fixed income (25%), real assets (10%), hedge funds (10%), and private equity (10%). For other Comprehensive and Supplemental Plans, the policy establishes a strategic target for asset allocation among equity securities (58%), fixed income (32%) and real estate (10%). The Plans are authorized to invest in U.S. Government securities, common and international stock, money market mutual funds, corporate bonds, repurchase agreements, and real estate. State statutes do not prohibit the Plans from participating in securities lending activities. All investments are valued at fair value. Fair value for investments in pooled separate accounts is determined using quoted market value or fair value as determined by valuation committees when quoted market value is not available. Assets of each Plan are held in separate trust funds. Within each trust, assets are held in custodial accounts for which the custodian makes no investment decisions. The investment policies allow the Plans’ to invest in Alternative Investments which the Plans enter into under limited partnership agreements. The limited partnership determines the fair value of alternative investments when quoted market value is not available. The Plans use a third party administrator to aid in the evaluation of the Alternative Investments. The Prince George’s County, Maryland Non-Pension Post Employment Benefits Fund (the OPEB Trust Fund) was established during fiscal year 2008. In September 2010, the Board of Trustees established an investment policy to set forth the Trustees’ investment objectives, policies, guidelines, monitoring and review procedures relating to the management and safekeeping of all assets of the OPEB Trust. The Fund’s assets may be invested in domestic equity investments, convertible bonds, preferred stocks, US Government obligations, repurchase agreements, corporate bonds, asset backed securities, agency guaranteed mortgage pass-through securities, low risk collateralized mortgage obligations, and international investments. American Depository Receipts (ADRs) and dual listed foreign stocks may be held by each domestic equity manager to a maximum of 10%.
(b) Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. As a means of limiting the exposure to fair value losses arising from rising interest rates, the Primary Government’s investment policy limits investments with maturities greater than one year to a calculation based on 50% of the average of the investment low point for the last three years. Investments made with unspent bond proceeds may not have a maturity greater than 3 years at time of purchase. At June 30, 2016, investments with maturities greater than one year at the time of purchase were 25.0% of the portfolio. The table below includes the Primary Government’s fixed income holdings by investment type, fair value, and maturity:
Investm ent Type Fair Value Less than 1 year 1 to 5 U.S. Agency Securit ies 168,284$ 24,987$ 143,297$ Cert ificat es of Deposit 130,993 130,993 - Money Market Mut ual Funds 15,695 15,695 - Local Government Invest ment Pool 425,872 425,872 -
740,844$ 597,547$ 143,297$
Primary Government Investments (in thousands)
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The Pension Plans’ policies limit the average maturity and duration of certain investments. The table below includes the Pension Plans’ fixed income holdings by investment type, fair
value, and maturity:
Investment Type Fair Value Less than 1 year 1 to 5 6 to 10 over 10
U.S. Government Securities 12,891$ -$ -$ -$ 12,891$ U.S. Agency Securities 20,032 - 17,065 - 2,967 Corporate Bonds 89,773 159 28,764 52,876 7,975 Asset-Backed Securities 43,899 - 1,444 17,995 24,460 Short-Term Investments 25,051 25,051 - - -
191,646$ 25,210$ 47,273$ 70,871$ 48,293$
Pension Fund Investments (in thousands) (1)
(1) Table does not include Common Stock, International Government Securities, Mutual Funds, or Real Estate Investment Trust investments, which do not have maturity dates.
(c) Credit Risk
Credit risk involves disclosing the credit quality of investments in debt securities as described by nationally recognized rating agencies. The Primary Government’s investment policy
prescribes the following credit quality standards. Bankers’ acceptances and commercial paper must have a debt rating in the highest letter and numerical rating by at least one nationally recognized statistical rating organization as designated by the SEC. As of June 30, 2016, the primary government had investments in the following issuers with credit quality ratings as a percent of the total investments in debt securities:
As of June 30, 2016, the OPEB Plan had investments in the following issuers with credit quality ratings as a percentage of the total investments in debt securities:
I N V EST M EN T T Y PE A M O U N T M O O D Y ' S % I N V EST M EN T T Y PE A M O U N T S&P %
M oney M arket Funds 2,503 NR 4.88% M oney M arket Funds 2,503 NR 4.88%
Commingled Trust Funds 48,822 NR 95.12% Commingled Trust Funds 48,822 NR 95.12%
51,325$ 51,325$
O PEB F U N D I N V EST M EN T S
C R ED I T R I SK
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The Pension Plans’ policies do not address credit quality, except a requirement that no more than 5% of investments can be committed to government sponsored entities unless they are AAA rated. During fiscal year 2016 the Plans investments in government sponsored entities with ratings below AAA exceeded the 5% limit. As of June 30, 2016 the Plans had investments in the following issuers with credit quality ratings as a percentage of the total investments in debt securities:
I nvest ment T yp e A mo unt M o o d y' s % I nvest ment T yp e A mo unt S&P %
U.S. Agency Securit ies 17,859$ Aaa 9 .4 7%
U.S. Agency Securit ies - AA 0 .0 0 % U.S. Agency Securit ies 17,461 AA 9 .2 6 %
U.S. Agency Securit ies - A 0 .0 0 % U.S. Agency Securit ies - A 0 .0 0 %
U.S. Agency Securit ies 2,173 NR 1.15% U.S. Agency Securit ies 2,571 NR 1.3 6 %
Short -Term Invest ment s 25,051 NR 13 .2 9 % Short -Term Invest ment s 25,051 NR 13 .2 9 %
Corporat e Bonds 3,130 Aa 1.6 6 % Corporat e Bonds 4,185 AA 2 .2 2 %
Corporat e Bonds 8,095 A 4 .2 9 % Corporat e Bonds 6,339 A 3 .3 6 %
Corporat e Bonds 6,097 Baa 3 .2 3 % Corporat e Bonds 11,523 BBB 6 .11%
Corporat e Bonds 24,112 Ba 12 .79 % Corporat e Bonds 31,866 BB 16 .9 1%
Corporat e Bonds 37,420 B 19 .8 5% Corporat e Bonds 33,588 B 17.8 2 %
Corporat e Bonds 4,602 CAA 2 .4 4 % Corporat e Bonds 295 CCC 0 .16 %
Corporat e Bonds 6,317 NR 3 .3 5% Corporat e Bonds 1,977 NR 1.0 5%
Int ernat ional Government Securit ies 1,636 NR 0 .8 7% Int ernat ional Government Securit ies 1,636 NR 0 .8 7%
Real Est at e Invest ment Trust 8,107 NR 4 .3 0 % Real Est at e Invest ment Trust 8,107 NR 4 .3 0 %
Asset -Backed Securit ies 275 Aaa 0 .15% Asset -Backed Securit ies 32 AAA 0 .0 2 %
Asset -Backed Securit ies 340 A 0 .18 % Asset -Backed Securit ies 340 A 0 .18 %
Asset -Backed Securit ies 7,405 NR 3 .9 3 % Asset -Backed Securit ies 7,649 NR 4 .0 6 %
M ort gage-Backed Securit ies 413 AAA 0 .2 2 % M ort gage-Backed Securit ies 444 AAA 0 .2 4 %
M ort gage-Backed Securit ies 791 AA 0 .4 2 % M ort gage-Backed Securit ies 232 AA 0 .12 %
M ort gage-Backed Securit ies 370 A 0 .2 0 % M ort gage-Backed Securit ies 413 A 0 .2 2 %
M ort gage-Backed Securit ies 370 BBB 0 .2 0 %
M ort gage-Backed Securit ies 34,305 NR 18 .2 0 % M ort gage-Backed Securit ies 34,419 NR 18 .2 6 %
188,498$ 188,498$
Pensi o n F und I nvest ment s
C r ed i t R i sk
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(d) Concentration of Credit Risk
Concentration risk is the risk of loss attributed to the magnitude of the Pension Plans’ investment in a single issuer. The Primary Government’s investment policy establishes maximum percentages of the portfolio for an investment class. These percentages apply at the time the investment is purchased and may be overridden to satisfy liquidity requirements. The investment policy limits certain investments to less than 5% of total investments. The percentages are as follows:
Investment Type Name Maximum %
U.S. Government Securities 100% U.S. Agency Securities 90% Repurchase Agreements 80% Certificates of Deposit and Time Deposits 80% Bankers' Acceptances 50% Commercial Paper 5% Pooled Investments 100% Municipal Securities and Municipal Money Market Mutual Funds 100%
Primary Government Investments
The OPEB Plan had no investments that exceed 5% that are required to be reported. The Pension Plan policy limits certain investments to less than 5% of total investments. The following investments represent over 5% of total investments with a single investor:
Police Fire Service Other State Street /PIMCO Bond Fund 89,735,919$ 40,018,212$ 38,409,221$ Percentage 10.65% 10.44% 9.26%
State Street /Causway International Equity Fund 49,930,498 23,413,373 21,444,093 Percentage 5.93% 6.11% 5.17%
State Street /Pointer LP Alternative Investments 49,079,252 21,945,877 21,626,900 Percentage 5.83% 5.72% 5.22%
State Street / SSGA S&P 500 Equity Fund 53,087,160 22,610,448 - Percentage 6.30% 5.90% -
State Street / Ballie Gifford Funds Equity Fund 48,383,680 25,515,161 - Percentage 5.74% 6.65% -
Pension Plans
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(e) Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the County or the Plans will not be able to recover deposits or collateral securities that are in the possession of an outside party. Deposits include bank accounts and non-negotiable certificates of deposit. Deposits at financial institutions were fully insured or collateralized at year-end.
Cash in Bank 16,219$ Out st anding checks in zero balance account s (16,993) Invest ment s 740,844
740,070$
Pri mary Gove rn me n t C ash an d In ve stme n ts Bal an ce s (i n th ou san ds) as of Ju n e 30, 2016
Custodial credit risk for investments is the risk that securities are uninsured, unregistered, and held by the counterparty, or by its trust department or agent, but not in the County or
the Plans’ name. As of June 30, 2016, there were no investments exposed to custodial credit risk.
(f) Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The primary government’s policy does not allow investments in foreign denominations. The Pension Plans’ policy allows the Plans to invest in foreign currency denominations, but does not address foreign currency exposure. The table below lists the Plans’ foreign currency exposure for fixed income and equity securities as of June 30, 2016.
Local Currency Equity Fixed
Income Other Total %
Australian Dollar 1,942 - 851 2,793 0.17% Canadian Dollar 1,323 90 5,337 6,750 0.41% Danish Krone 458 - - 458 0.03% Euro Currency 6,682 223 - 6,905 0.42% Hong Kong Dollar 1,790 21 306 2,117 0.13%
Japenese Yen 6,021 107 - 6,128 0.37% New Zealand Dollar - 1 - 1 0.00%
Norwegian Krone 208 8 - 216 0.01% Pound Sterling 4,924 64 1,059 6,047 0.37% Singapore Dollar 742 7 - 749 0.05%
South Korean Won 1,903 - - 1,903 0.12%
Swedish Krona 1,249 8 - 1,257 0.08% Swish Franc 1,528 4 - 1,532 0.09% Total Foreign Holdings 28,770$ 533$ 7,553$ 36,856$
Foreign Currency Exposure Other Pension Fund Investments (in thousands)
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(g) Securities Lending
The Board of Trustees for the Plans authorizes the lending of securities to broker-dealers for collateral that will be returned for the same securities in the future. The collateral securities, letters of credit and cash are initially pledged at 100% of the market value of the securities lent and revalued daily to ensure that the collateral does not fall below 100%. The Plans are indemnified of credit risk as it relates to counterparty loan activity. The collateral securities and letters of credit cannot be sold or pledged unless the borrower defaults. As a result, such amounts have not been reported as assets and liabilities in the combined statement of plan net position of the Pension Trust Funds. Cash collateral is invested in the Plans’ custodian’s short-term investment pool, which at year-end had an average duration of 43 days and an average weighted maturity of 83 days. As of the date of the report the duration pool had an average duration of 45 days and an average weighted maturity of 2,211 days for USD collateral. The relationship between the maturities of the investment pool and the Plans’ loans is affected by the maturities of the securities loans made by other entities that use the pool, which the Plans cannot determine. Securities lent for cash collateral are unclassified in the Combined Statement of Plan Net Position. Securities lent for securities or letters of credit collateral are classified according to the category of custodial risk for the collateral. The collateral held and the fair value of securities on loan as of June 30, 2016 totaled $34,844,378 and $34,199,999, respectively. Cash collateral held, amounting to $26,497,460 is included as an asset and liability in the accompanying financial statements at year-end.
(h) Derivatives The Investment Policy of the Pension Plans allows the plans to invest in certain derivatives in order to increase potential earnings and hedge against potential losses. In fiscal year 2016 the Plans invested directly in various derivatives including futures contracts, forward currency contacts, and rights. During the fiscal year the plans had the following derivative instrument activity:
Investment Type Notional Amount Changes in Fair
Value Classification Fair Value at
June 30, 2016
Rights - (177) Common Stock - Warrants 2,793 - Common Stock -
2,793$ (177)$ -$
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(5) Interfund Receivables, Payables, and Transfers
Interfund balances for the Primary Government as of June 30, 2016 are as follows: Due from/to other funds:
Receivable Fund Payable Fund Amount General Fund Federal and State Aided Programs 19,500,000$
Capital Projects 93,000,000 Solid Waste Fund 5,500,000
118,000,000$
Due from/to other entities: Receivable Entity Payable Entity Amount
Component Unit - Board of Education Primary Government - Capital Projects Fund 9,243,989$ Component Unit - Memorial Library Primary Government - Capital Projects Fund 441,749
9,685,738$
Primary Government - General Fund Component Unit - Housing Authority 5,296,161$ Primary Government - General Fund Component Unit - Community Television 450,000 Primary Government - General Fund Component Unit - Revenue Authority 799,938 Primary Government - General Fund Component Unit - Board of Education 915,816 Primary Government - General Fund Component Unit - Memorial Library 156,063 Primary Government - Internal Service Funds Component Unit - Memorial Library 247,861
7,865,839$
The balance due to the General Fund from other funds is the result of temporary borrowing to cover cash deficits. Amounts due from component units are related to risk management or other contractual agreements.
Interfund transfers for the Primary Government as of June 30, 2016 are as follows:
Transfers from/to other funds:
Transfers From Transfers To Amount General Fund Nonmajor Governmental Funds 94,344,167 General Fund Capital Projects 690,000
95,034,167$
Transfers are to support contributions to grants and debt service.
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(6) Due From Other Governmental Units
The State owes the Primary Government $111,550,396 for its share of income tax collections. The other Primary Government amounts are primarily grant-related receivables. A summary of amounts due from other governmental units at June 30, 2016 is listed below:
State of Federal Other Maryland Government Sources Total
Primary Government $ 167,698,119 23,454,611 14,887,768 206,040,498 Component Units:
Board of Education 9,433,157 20,786,111 25,887,170 56,106,438 Other Component Units 1,271,114 3,407,068 210,331 4,888,513 Total 10,704,271 24,193,179 26,097,501 60,994,951
Total Reporting Entity $ 178,402,390 47,647,790 40,985,269 267,035,449
(7) Capital Assets
(a) Governmental Activities
Changes in capital assets during fiscal year 2016 were as follows: Balance Disposals and Balance
July 1, 2015 Additions June 30, 2016 Primary Government: Capital assets, not being depreciated: Land 97,964,238$ 5,143,333 - 103,107,571 Construction in progress 88,339,803 70,369,703 61,294,042 97,415,464
Total capital assets, not being depreciated: 186,304,041 75,513,036 61,294,042 200,523,035
Capital assets, being depreciated: Buildings and improvements 594,366,593 9,026,045 - 603,392,638 Equipment 185,490,731 20,831,818 13,272,131 193,050,418 Infrastructure 2,800,456,274 102,638,625 - 2,903,094,899 Total capital assets, being depreciated: 3,580,313,598 132,496,488 13,272,131 3,699,537,955
Less accumulated depreciation for: Buildings and improvements 150,507,435 11,772,657 - 162,280,092 Equipment 146,547,062 17,606,576 11,951,790 152,201,848 Infrastructure 1,171,033,918 49,159,157 - 1,220,193,075 Total accumulated depreciation 1,468,088,415 78,538,390 11,951,790 1,534,675,015
Total capital assets being depreciated, net 2,112,225,183 53,958,098 1,320,341 2,164,862,940
Governmental activities capital assets 2,298,529,224$ 129,471,134 62,614,383 2,365,385,975
Completed Construction
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Depreciation expense was charged to functions/programs of governmental activities as follows:
Governmental Activities: General government 13,076,966$ Public safety 13,650,038 Environmental 339,449 Health and Human Services 475,112 Infrastructure and Development 50,862,926
133,899 Total depreciation expense - governmental activities 78,538,390$
Capital assets being held by internal service funds are charged to the various functions based on their usage of the assets
Construction of capital assets in progress for the Primary Government at June 30, 2016, exclusive of Proprietary Fund assets and improvements not capitalized, is as follows:
Expended through
Project No. June 30, 2016
Training/Administration Headquarters 3.50.0006 $ 34,101,868 Records Managewment System 8.31.0001 7,914,701 Contee Road 4.66.0007 5,237,547 Regional Health Center 3.70.0001 393,616 Other public faciilities Various 436,618
Other library projects Various 19,741,591
Public safety projects Various 6,758,131
Other road and bridge projects Various 22,831,392
Total Primary Government $ 97,415,464
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(b) Business-type Activities
Changes in capital assets during fiscal year 2016 were as follows:
Balance Disposals and Balance
July 1, 2015 Additions June 30, 2016 Capital assets, not being depreciated: Land/Land Infrastructure $ 27,035,977 8,500 - 27,044,477 Construction in progress 103,097,747 33,131,656 2,709,208 133,520,195
Total capital assets, not being depreciated: 130,133,724 33,140,156 2,709,208 160,564,672
Capital assets, being depreciated: Buildings and improvements 34,621,730 - - 34,621,730 Equipment and vehicles 32,694,812 795,433 7,818,713 25,671,532 Landfill property in service 121,336,027 - - 121,336,027 Stormwater property in service 195,398,267 2,700,708 - 198,098,975 Total capital assets being depreciated: 384,050,836 3,496,141 7,818,713 379,728,264
Less accumulated depreciation for: Buildings and improvements 16,083,891 859,843 - 16,943,734 Equipment and vehicles 24,912,998 4,813,084 7,818,713 21,907,369 Landfill property in service 103,795,160 5,928,243 - 109,723,403 Stormwater property in service 57,482,941 3,436,740 - 60,919,681 Total accumulated depreciation 202,274,990 15,037,910 7,818,713 209,494,187
Total capital assets being depreciated, net 181,775,846 (11,541,769) - 170,234,077
Business-type activities capital assets $ 311,909,570 21,598,386 2,709,208 330,798,749
Completed Construction
Depreciation expense was charged to functions / programs of the business-type activities as follows:
Solid Waste Fund $ 11,126,883 Stormwater Management Fund 3,911,027 Total depreciation expense - business-type activities $ 15,037,910
As of June 30, 2016, construction requisitions outstanding for governmental and proprietary funds of the Primary Government totaled approximately $9.5 million and $4.6 million, respectively.
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Changes in c apital assets for the Stormwater Management Fund during 2016 were as follows:
Balanc e Disposals and Balanc e July 1, 2015 Additions June 30, 2016
Capital assets, not being deprec iated: Land/Land Infrastruc ture $ 15,729,896 8,500 - 15,738,396 Construc tion in progress 74,114,070 29,622,860 2,709,208 101,027,722
Total c apital assets, not being deprec iated: 89,843,966 29,631,360 2,709,208 116,766,118
Capital assets, being deprec iated: Buildings and improvements 242,525 - - 242,525 Equipment and vehic les 4,085,871 - 47,289 4,038,582 Stormwater property in servic e 195,398,267 2,700,708 - 198,098,975 Total c apital assets being deprec iated: 199,726,663 2,700,708 47,289 202,380,082
Less ac c umulated deprec iation for: Buildings and improvements 242,525 - - 242,525 Equipment and vehic les 3,343,235 474,287 47,289 3,770,233 Stormwater property in servic e 57,482,941 3,436,740 - 60,919,681 Total ac c umulated deprec iation 61,068,701 3,911,027 47,289 64,932,439
Total c apital assets being deprec iated, net 138,657,962 (1,210,319) - 137,447,643
Stormwater Management Fund c apital assets $ 228,501,928 28,421,041 2,709,208 254,213,761
Changes in c apital assets for the Solid Waste Fund during 2016 were as follows:
Balanc e Disposals and Balanc e July 1, 2015 Additions June 30, 2016
Capital assets, not being deprec iated: Land $ 11,306,081 - - 11,306,081 Construc tion in progress 28,983,677 3,508,796 - 32,492,473
Total c apital assets, not being deprec iated: 40,289,758 3,508,796 - 43,798,554
Capital assets, being deprec iated: Buildings and improvements 34,379,205 - - 34,379,205 Equipment and vehic les 28,608,941 795,433 7,771,424 21,632,950 Landfill property in servic e 121,336,027 - - 121,336,027 Total c apital assets being deprec iated: 184,324,173 795,433 7,771,424 177,348,182
Less ac c umulated deprec iation for: Buildings and improvements 15,841,366 859,843 - 16,701,209 Equipment and vehic les 21,569,763 4,338,797 7,771,424 18,137,136 Landfill property in servic e 103,795,160 5,928,243 - 109,723,403 Total ac c umulated deprec iation 141,206,289 11,126,883 7,771,424 144,561,748
Total c apital assets being deprec iated, net 43,117,884 (10,331,450) - 32,786,434
Solid Waste Fund c apital assets $ 83,407,642 (6,822,654) - 76,584,988
Completed Construc tion
Completed Construc tion
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Construction in progress in the enterprise funds as of June 30, 2016 consists of the following: Primary Government - Business-type Activities: o Stormwater Management Enterprise Fund
- Stormdrain Relief Program (5.54.0005) $ 16,095,479 - Water Quality Control Facility (5.54.0006) 718,190 - Anacostia Retrof it (5.54.0008) 3,378,277 - Street Tree Removal & REplacement (5.66.0001) 726,744 - Stormw ater Management Restoration (5.66.0002) 15,788,404 - Watershed Implementation Plan II (5.54.0017) 10,688,366 - Major Reconstruction – DPWT (5.54.0011) 28,839,762 - Clean Water Partnership/NPDES (5.54.0018) 7,040,697 - COE Anacostia Restoration (5.54.0012) 5,320,946 - MS4/NPDES Compliance & Restoration (5.54.0019) 1,524,807 - Bladensburg Environmental Revitalization (5.54.0013) 6,866,210 - Other miscellaneous projects 4,039,840
101,027,722
o Solid Waste Enterprise Fund - Brown Station Landfill Expansion (5.54.0001) 12,595,989 - Rural Convenience Center (5.54.0002) 318,703 - Sandy Hill Landfill Expansion (5.54.0003) 18,668,222 - Commercial Manufacturer/Waste Transfer Station (5.54.0004) 909,559
32,492,473 Total Primary Government - Business-type Activites $ 133,520,195
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(c) Component Units Capital Assets Activity
Changes in Board of Educ ation c apital assets during fisc al year 2016 were as follows:
B alance Dispo sals and B alance July 1, 2015 A dditio ns June 30, 2016
Capital assets, no t being depreciated: Land 23,619,039$ - - 23,619,039 Co nstructio n in pro gress 66,325,569 77,285,179 27,369,430 116,241,318
To tal capital assets, no t being depreciated: 89,944,608 77,285,179 27,369,430 139,860,357
Capital assets, being depreciated: B uildings and impro vements 1,785,622,558 31,991,347 264,242 1,817,349,663 Equipment and vehicles 185,356,349 18,440,399 12,539,856 191,256,892 To tal capital assets, being depreciated: 1,970,978,907 50,431,746 12,804,098 2,008,606,555
Less accumulated depreciatio n fo r: B uildings and impro vements 707,339,801 52,150,904 192,109 759,298,596 Equipment and vehicles 95,856,497 14,677,186 12,193,182 98,340,501 To tal accumulated depreciatio n 803,196,298 66,828,090 12,385,291 857,639,097
To tal capital assets being, depreciated, net 1,167,782,609 (16,396,344) 418,807 1,150,967,458
Co mpo nent units - B o ard o f Educatio n capital assets 1,257,727,217$ 60,888,835 27,788,237 1,290,827,815
Changes in other c omponent units' c apital assets during fisc al year 2016 were as follows:
B alance Dispo sals and B alance July 1, 2015 A dditio ns June 30, 2016
Capital assets, no t being depreciated: Land (restated) 67,416,895$ 6,307,431 3,983,176 69,741,150 Co nstructio n in pro gress 21,372,220 19,724,766 18,172,345 22,924,641
To tal capital assets, no t being depreciated: 88,789,115 26,032,197 22,155,521 92,665,791
Capital assets, being depreciated: B uildings and impro vements 275,832,612 18,715,765 332,772 294,215,605 Equipment and vehicles 57,693,956 2,885,152 2,868,177 57,710,931 To tal capital assets, being depreciated: 333,526,568 21,600,917 3,200,949 351,926,536
Less accumulated depreciatio n fo r: B uildings and impro vements 105,142,917 8,790,709 88,601 113,845,025 Equipment and vehicles 38,642,977 6,641,037 2,852,535 42,431,479 To tal accumulated depreciatio n 143,785,894 15,431,746 2,941,136 156,276,504
To tal capital assets being, depreciated, net 189,740,674 6,169,171 259,813 195,650,032
Other co mpo nent units - capital assets 278,529,789$ 32,201,368 22,415,334 288,315,823
Co mpleted Co nstructio n
Co mpleted Co nstructio n
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(8) Risk Management
Details of estimated liabilities on pending claims, by fund, at June 30, 2016 are as follows:
Risk Management Other Pools Self-Insurance Total
Primary Government: Internal Service Funds:
Unemployment Compensation -$ 132,898$ 132,898$ Property Loss 573,195 - 573,195 Automobile Liability 2,601,442 - 2,601,442 Workers' Compensation 141,281,054 - 141,281,054 General Liability 16,515,446 - 16,515,446 Life and Health Benefits - 13,787,971 13,787,971
Total Primary Government 160,971,137$ 13,920,869$ 174,892,006$
The Primary Government, together with the Board of Education, the Board of Trustees for Prince George's Community College, and the Board of Trustees of Prince George's County Memorial Library are exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County maintains various pooled risk management Internal Service Funds (comprised of the above mentioned members) to account for and finance its uninsured losses. Under this program, the County is an approved self-insurer by the State of Maryland, and as such, is subject to provide coverage according to State mandatory limits of $500,000 per injury. Property coverage is self-insured for $250,000 per incident with excess insurance above this level provided by American International Group, Inc. (AIG), which includes replacement values of both structures and contents. Liability coverage is self-insured. The County has a liability limit under the State Tort Claims Act of $400,000 per person not to exceed $800,000 per incident for all participants with the exception of the Board of Education, which retains immunity at $400,000 per incident. These limits do not apply to claims brought under Federal jurisdiction. Participants of the risk management pools normally make contributions based upon prior experience with evaluations conducted annually by an actuary. In fiscal year 2016, the Primary Government made contributions amounting to $36,378,421. The actuarially computed claims liability has been discounted at a rate of .5 percent, based on the pool's investment yield rate and current economic conditions. There were no settlements in excess of the insurance coverage in any of the three prior fiscal years. The total claims liability of $160,971,137 reported for the risk management pools at June 30, 2016 is based upon the requirements of GAAP, which requires that a liability for claims be recognized if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated, including claims incurred but not reported. The liability estimates are supported by an independent actuarial review made as of June 30, 2016. The funds do not utilize annuity contracts from commercial insurers; therefore, all known liabilities have been disclosed during this reporting period. Changes in the funds’ claims liability amounts in fiscal years 2015 and 2016 were as follows:
Balance at Beginning
of Fiscal Year
Current Year Claims and
Changes in Estimates
Claim Payments
Balance at End
of Fiscal Year
Fiscal year 2015 $134,339,582 56,684,617
46,521,510
(45,323,393) 145,700,806
Fiscal year 2016 $145,700,806 59,186,751
(43,916,420) 160,971,137
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The following is a summary of the fiscal year 2016 claims expense by fund:
Total Claim Payments
Liability on Pending Claims
Adjustment Total Claims Expenses
Property Loss Fund 82,891$ 133,429$ 216,320$
Auto Liability Fund 1,594,222 (220,507) 1,373,715
Workers' Compensation Fund 38,822,004 9,285,390 48,107,394
General Liability Fund 3,417,303 6,072,019 9,489,322 43,916,420$ 15,270,331$ 59,186,751$
The Primary Government maintains separate Internal Service Funds for unemployment compensation and life and health benefits. An independent actuary is not involved in evaluating contribution levels and estimated claims for the Unemployment Compensation or Life and Health Benefits Internal Service Funds. Changes in these funds’ claims liability amount in fiscal years 2015 and 2016 were as follows:
Balance at Beginning
of Fiscal Year
Current Year Claims and Changes in Estimates
Claim Payments
Balance at End of Fiscal Year
Fiscal year 2015
$12,334,369 51,659,526 (51,198,334)
12,795,561
Fiscal year 2016
$12,795,561 56,686,500 (55,561,192)
) 13,920,869
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(9) Pension Plans
(a) Primary Government
Employees of the Primary Government participate in the following pension plans:
The majority of employees participate in the statewide local government retirement system pension plan listed below. It is a cost-sharing, multiple-employer, defined benefit pension plan administered by the Maryland State Retirement and Pension System (MSRPS)], in accordance with Article 73B of the annotated Code of Maryland.
x Employees Retirement and Pension System of Maryland
Public safety employees of the Primary Government may participate in the following single-employer, defined benefit pension plans:
x Police Pension Plan
x Fire Service Pension Plan
x Deputy Sheriffs’ Comprehensive Pension Plan
x Correctional Officers' Comprehensive Pension Plan
Qualified employees can also supplement the State Retirement and Pension System plan with one of the following single-employer, defined benefit "Supplemental Plans":
x Deputy Sheriffs’ Supplemental Pension Plan
x Correctional Officers' Association Supplemental Pension Plan
x AFSCME Local 241 (Crossing Guards) Supplemental Pension Plan
x AFSCME Local 2462, and 2735 Supplemental Pension Plan
x General Schedule Employees Supplemental Pension Plan
x Fire Civilian Supplemental Pension Plan
x Police Civilian Supplemental Pension Plan
(i) Plans Administered by the State Retirement and Pension System of Maryland (MSRPS) - [Multiple-employer, Cost-sharing, Defined Benefit Pension Plans]
Qualified full-time and permanent part-time general service employees and officers of the Primary Government participate in the statewide Retirement System or Pension System plans administered by the MSRPS. Effective June 1, 1984, employees who were members of a Retirement System on December 31, 1979, could elect to join a Pension System or remain in a Retirement System. All employees hired on or after January 1, 1980, are required to join the Pension System. All MSRPS plans have provisions for early retirement, death, and disability benefits.
Article 73B of the Annotated Code of Maryland assigns the authority to establish and amend benefit and contribution provisions to SRPS' Board of Trustees. MSRPS issues a publicly available financial report that includes financial statements and required supplementary information on the Plans. Requests for copies of annual financial reports should be addressed to MSRPS' administrative offices located at 120 East Baltimore Street, Baltimore, Maryland 21202, or can be made by telephoning (410) 625-5555 or 1-800-492-5909.
Participants of the Pension System plan contribute 5% of earnings above the Social Security wage base and may retire with full benefits after 30 years of service regardless of age or at age 62 or older with specified years of service. Retirement benefits are based on the participant's highest average annual compensation during any 3 consecutive years of credited service.
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Participants of the Retirement System plan contribute 7% of annual compensation and upon retirement are entitled to unlimited cost-of-living adjustments, or contribute 5% of annual compensation and upon retiring are limited to 5% cost-of living increases annually. Retirement System participants may retire with full benefits after attaining age 60, or after completing 30 years of service, regardless of age. Annual retirement benefits are equal to 1/55 of the average of the participant's three highest years of annual compensation, multiplied by the number of years of credited service. The Primary Government made the actuarially required contributions of $15,745,854 for fiscal year 2015
(ii) Police, Fire Service, Deputy Sheriff's, Correctional Officers', and Supplemental Pension Plans [Single-Employer, Defined Benefit Pension Plans]
Plan Descriptions
The Primary Government has adopted the Police Pension Plan, Fire Service Pension Plan, Deputy Sheriff's Comprehensive Pension Plan, Correctional Officers' Comprehensive Pension Plan, Deputy Sheriff's Supplemental Pension Plan, Correctional Officers' Association Supplemental Pension Plan, AFSCME Local 241 (Crossing Guards) Supplemental Pension Plan, AFSCME Locals 1691, 2462, and 2735 Supplemental Pension Plan, General Schedule Employees Supplemental Pension Plan, Fire Civilian Supplemental Pension Plan, and Police Civilian Supplemental Pension Plan. The Pension Plans provide retirement and disability benefits for all full-time employees. Administrative, investment, and member benefit service responsibilities are provided by a separate Board of Trustees for each Plan. Such Trustees have the authority to amend benefit provisions and contribution requirements. Currently, each Plan has the same Retirement Administrator, who is an employee of the Primary Government.
Normal retirement is at age 55 or after 20 years of service for firefighters, paramedics, deputy sheriffs and correctional officers under the Comprehensive Plans. Police officers hired after June 30, 2016 are eligible to retired with 25 years of services. For AFSCME Local 241 (Crossing Guards), AFSCME Locals 2462 and 2735, general schedule employees, and deputy sheriff's under the supplemental plan, normal retirement age is the earliest of age 62 with 5 years of service, age 55 with 15 years of service, any age with 30 years of service, or 25 years of service for deputy sheriff's. For correctional officers under the supplemental plan, normal retirement is the earliest of age 60 or 25 years of County service. Retirement benefits are calculated as a percentage of average compensation, with such percentage determined by length of credited service up to a maximum of 85% for 30 years of service for police officers, firefighters, paramedics, deputy sheriffs, and correctional officers under the Comprehensive Plans. For general schedule, fire civilian employees, AFSCME Locals 2462, and 2735, and police civilian employees the maximum retirement benefit is 30% for 30 years of service, 22.5% for 30 years of service for AFSCME Local 241 (crossing guards), 36% for 30 years of service for deputy sheriff's, and 38.75% for 30 years of service for correctional officers under the Supplemental Plans.
The Pension Plans are classified by the Primary Government as Pension Trust Funds and separate financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenue in the period in which employee services are performed and expenses, benefits, and refunds are recognized when corresponding liabilities are incurred, regardless of when payment is made. Investments of the pension funds, represented by equity in pooled pension trust funds and cash and investments are carried at market value (or at a fair value when a quoted market value is not available) as reported by the investment managers. Complete separate financial statements may be obtained at the following address: Prince George's County Office of Personnel, 1400 McCormick Drive, Room 110, Largo, Maryland 20774.
Funding Policy
Contributions to the Plans for 2016 were made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of July 1, 2015. The Primary Government's fiscal year 2016 total payroll was $521,314,755. Employee contribution rates are determined by collective-bargaining agreements or by the Board of Trustees for each Plan. Participant contributions are included in the plan assets and are 100% vested with the employee. Upon termination of employment, a participant may elect to receive a refund of contributions; if there has been at least five years of credited service, the participant may instead elect a retirement annuity upon attaining retirement age. Participants begin vesting in employer contributions after 5 years of credited service.
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The contribution rates as a percentage of covered payrolls during fiscal year 2016 were as follows:
July 1, 2015 to June 30, 2016
Employee Employer
Rates Rates
Comprehensive Plans:
Police 6.00% 50.19%
Fire Service 6.00 63.62
Deputy Sheriff's 10.00 45.17
Correctional Officers' 12.00 36.53
Supplemental Plans:
Deputy Sheriff's 5.20 846,400$ *
Correctional Officers' 5.75 42.78%
Crossing Guards 4.17 5.31
AFSCME 1.43 6.49
General Schedule 3.23 7.20
Fire Civilian 4.62 11.89
Police Civilian 3.76 4.86
For the Police Pension Plan, officers hired on or before July 1, 2013, contribute 9% for the first five years, 8% for the second five years an 6% thereafter. Officers hired after July 1, 2013, contribute 9% of pay. For the Fire Service Pension Plan, members hired before July 1, 2008, contribute 6% of basic compensation and members hired on or after July1, 2008, contribute 10% of basic compensation. For the Deputy Sheriffs’ Pension Plan, 10% of base pay (11% of base pay for employees hired on or after July 1, 2005). For the correctional Officers Pension Plan, 12% of base pay (13% of base pay for officers hired on or after July 1, 1995). Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred inflows of Resources Related to Pensions At June 30, 2016 the County reported a liability of $151,482,409 for its proportionate share of the net pension liability of the MSRPS. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by and actuarial valuation as of that date. As of June 30, 2015, the County’s proportionate share was 0.729%. At June 30, 2016 the County reported a liability of $1,383,164,373 for its other County Plans. The total pension liability, net pension liability, and certain sensitivity information shown in this report are based on an actuarial valuation performed as of July 1, 2015. The total pension liability was rolled forward from the valuation date to the plan year ending June 30, 2016 using generally accepted actuarial principles.
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For fiscal year ended June 30, 2016, the County recognized pension expense of $205,690,493.
Net P ensio n Liability P ensio n Expense
P ro po rtio nate share o f M SRP S 151,482,409$ 17,351,002$
Co unty P lans
Co mprehensive P lans:
P o lice 678,844,485 91,389,879
Fire Service 420,064,072 55,937,063
Deputy Sheriff's 65,222,771 9,193,132
Co rrectio nal Officers' 113,243,845 14,787,162
Supplemental P lans:
Deputy Sheriff's 5,537,094 388,318
Co rrectio nal Officers' 1,913,593 913,552
Cro ssing Guards 589,687 77,642
A FSCM E 20,841,084 4,500,371
General Schedule 63,090,783 9,325,576
Fire Civilian 5,058,894 572,778
P o lice Civilian 8,758,065 1,254,018
To tal 1,534,646,782$ 205,690,493$
The County's change in total pension liability, plan fiduciary net position and net pension liability for the year ended June 30, 2016, was as follows:
Total Pension Liability Plan Fiduciary Net
Position Net Pension Liability
(A) (B) (A)-(B
Balance as of June 30, 2015 2,908,035$ 1,697,174$ 1,210,861$
Service Cost 71,358 - 71,358
Interest 214,562 - 214,562
Differences between expected and actual experience 2,537 - 2,537
Contributions-employer - 125,840 (125,840)
Contributions-employee - 22,429 (22,429)
Net Investment - (30,061) 30,061
Benefit Payments, including refunds of employee contributions (167,513) (167,513) -
Administrative expenses - (2,054) 2,054 Balance as of June 30, 2016 3,028,979$ 1,645,815$ 1,383,164$
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At June 30, 2016 the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflo w o f Reso urces
Deferred Inflo w o f Reso urces
P ro po rtio nate share o f M SRP S 11,415,087$ -
P ro po rtio nate share o f M SRP S 4,667,283
Co mprehensive P lans:
P ro po rtio nate share o f M SRP S 1,758,422 3,102,229
P o lice 4,729,592 8,761,341
Fire Service 16,171,906 -
Deputy Sheriff's 1,568,414 315,589
Co rrectio nal Officers' 5,455,632 -
Supplemental P lans:
Cro ssing Guards - 38,048
A FSCM E - 2,270,835
General Schedule 2,370,292 536,702
Fire Civilian 141,817 84,553
P o lice Civilian 214,376 -
P ro po rtio nate share o f M SRP S 13,342,443 10,140,518
Co mprehensive P lans:
P o lice 87,558,678 -
Fire Service 39,968,698 -
Deputy Sheriff's 5,463,814 -
Co rrectio nal Officers' 10,062,979 -
Supplemental P lans:
Deputy Sheriff's 336,295 -
Co rrectio nal Officers' 692,061 -
Cro ssing Guards 113,057 -
A FSCM E 7,175,717 -
General Schedule 11,223,332 -
Fire Civilian 651,280 -
P o lice Civilian 1,829,365 -
P ro po rtio nate share o f M SRP S 13,366,027 -
240,276,567$ 25,249,815$
Difference between expected and actuarial experience
Changes in assumptio ns
Net difference between pro jected and actual earnings o n pensio n plan investments
Co unty co ntributio ns subsequent to the measurement
Changes in pro po rtio ns
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The $13,366,027 reported as deferred outflows of resources related to pensions resulting from the County’s contributions will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows:
Year Ended
June 30 M SRP S Other P lans To tal
2017 3,472,337$ 48,877,137 52,349,474
2018 3,472,337 48,877,137 52,349,474
2019 3,472,337 48,899,446 52,371,783
2020 5,575,112 35,276,178 40,851,290
2021 1,948,365 1,082,427 3,030,792
Thereafter - 707,912 707,912
To tal 17,940,488$ 183,720,237 201,660,725
Actuarially Assumptions
The total pension liability in the actuarial valuations was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Valuation Date June 30, 2015 Valuation Date July 1, 2015
Measurement Date June 30, 2015 Measurement Date June 30, 2016
Inflation 2.70% general, 3.20% Payroll growth rate Inflation 2.75% general, 3.00% Payroll growth rate
Salary Increases 3.20% - 9.20%, inflation Salary Increases 1.00% - 7.00%
Investment Rate of Return 7.55% Investment Rate of Return 7.50%
Investment rate of return changed from 7.65% to 7.55% Inflation assumption changed from 2.9% to 2.7%.
Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the 2012 valuation pursuant to an experience study of the period 2006-2010.
Experience-based table of rates that are specific to the type of eligibility condition. Updated for the 2014 valuation pursuant to an experience study of the period 2008-2013.
M S R P S P lan C ou n ty P lan s
RP 2014 Health Annuitant Mortality T able with rates multiplied by 0.75 for males and 1.10 for females for non-disabled annuitants and 1.00 and 1.35 for disabled annuitants.
RP 2000 Combined Healthy Mortality T able projected to the year 2025
T here were no benefit changes during the year. Adjustments to roll forward liabilities were made to reflect the following assumption changes in the 2015 valuation
T here were no benefit changes during the year. T he total pension liability was rolled forward from the actuarial valuation date to the measurement date.
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The long-term expected rate of return on pension plan investment are determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major class included in the pension plan’s target asset allocation are presented in the table below:
Lo ng-Term Expected Lo ng-Term Expected Lo ng-Term Expected
A sset Class Target A llo catio n Real Rate o f Return A sset Class Target A llo catio n Real Rate o f Return Target A llo catio n Real Rate o f Return
P ublic Equity 35.00% 6.30% Hedge Funds 10.00% 3.50% 10.00% 3.50%
Fixed Inco me 10.00% 0.60% P rivate Equity 10.00% 7.25% 10.00% 7.25%
Credit Oppo rtunity 10.00% 3.20% Real A ssets 10.00% 6.75% 10.00% 6.75%
Real Return 14.00% 1.80% TIP S 5.00% 0.00% 4.00% 0.00%
A bso lute Return 10.00% 4.20% High Yield 5.00% 3.25% 4.00% 3.25%
P rivate Equity 10.00% 7.20% Co re/Co re Fixed Inco me 15.00% 1.25% 19.00% 1.25%
Real Estate 10.00% 4.40% Emerging M arket 4.50% 7.50% 4.50% 7.50%
Cash 1.00% 0.00% Internatio nal Develo ped 18.00% 5.50% 17.00% 5.50%
Do mestic Small Cap 4.50% 4.00% 4.50% 4.00%
Do mestic Large Cap 18.00% 3.75% 17.00% 3.75%
P o lice and Fire Service P lans Other Co mperehensive and Supplemetal
P lansM SRP S
For the year ended June 30, 2015 the money-weighted weight of return on pension plan investments, net of pension plan investment expense, for the MSRPS was 2.71%. For the year ended June 30, 2016 the money-weighted weight of return on pension plan investments, net of pension plan investment expense, for the Police, Fire Service, and Other Comprehensive and Supplemental Plans was -2.66%, -2.59%, and -0.59% respectively. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.
Discount Rate
Single discount rates of 7.55% and 7.5% were used to measure the total pension liability for the MSRPS and Other County Plans, respectively. The single discount rate was based on the expected rate of return on pension plan investments of 7.55 and 7.5%. The projection of cash flows used to determine this singe discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumption, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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Sensitivity of the Net Pension Liability Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the plan’s net pension liability, calculated using single discount rate that is 1-percent-point lower or 1-percentage-point higher:
Current Single Discount Rate
Plan (SDR) Assumption 1% Decrease SDR 1% Increase MSRPS 7.55% 214,097,154$ 151,482,409$ 99,562,307$ Police 7.50% 861,545,613 678,844,485 526,925,130 Fire Service 7.50% 516,908,983 420,064,072 339,569,444 Deputy Sheriffs' Comprehensive 7.50% 80,339,151 65,222,771 52,583,874 Correctional Officers' Comprehensive 7.50% 141,988,592 113,243,845 89,336,112 Deputy Sheriffs' Supplemental 7.50% 6,419,976 5,537,094 4,782,317 Correctional Officers' Supplemental 7.50% 2,980,994 1,913,593 1,007,212 Crossing Guards 7.50% 763,488 589,687 436,983 AFSCME 7.50% 32,405,111 20,841,084 11,024,032 General Schedule 7.50% 83,320,844 63,090,783 45,847,857 Fire Civilian 7.50% 6,405,469 5,058,894 3,909,991 Police Civilian 7.50% 12,410,587 8,758,065 5,704,084
1,959,585,962$ 1,534,646,782$ 1,180,689,343$
Sensitivity of Net Pension Liability to the Single Discount Rate Assumption
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s net position is available in the separately issued financial reports. The MSRPS plan may be obtained on the Internet at http://www.sra.maryland.gov/Agency/Downloads/CAFR/; by writing to the MSRPS at 120 East Baltimore Street, Baltimore, Maryland 21202; or by calling (410)- 625-5555 or 1-800-492- 5909. The County’s other reports may be obtained by contain the Prince George’s County Office of Personnel at 1400 McCormick Drive, Room 110, Largo, Maryland 20774. (b) Component Units
Generally, all employees of the Board of Education, the Housing Authority, the Community College, the Memorial Library, and certain employees of the PGCT participate in one of the statewide Employee's Retirement and Pension Systems or Teacher's Retirement and Pension Systems. Information covering the Housing Authority and PGCT is included with the Primary Government because those individuals are also employees of the Primary Government. Separate financial statements prepared for the Board of Education, Memorial Library, and Community College, are available to the general public [see note 1(a)], and reflect detailed information relevant to their participation in MSRPS. Review of these financial statements indicates the Component Units individually met the actuarially determined contribution requirements for fiscal years 2016, 2015, and 2014. Additional MSRPS information is included in the table below:
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B o ard o f Educatio n
Co mmunity Co llege
M emo rial Library
P ro po rtio nate share o f M SRP S 0.83300% 0.02080% 0.00787%
Net P ensio n Liability 183,391,231$ 4,331,013$ 2,213,082$
P ensio n Expense 7,417,252 539,502 547,750
Deferred Outflo ws 56,011,693 1,431,947 527,032
Deferred Inflo ws 3,755,694 353,175 167,712
The State of Maryland is required to contribute certain amounts to the Teacher's Retirement and Pension Systems on behalf of the Board of Education, Community College, and Memorial Library. Such contributions, made by the State on behalf of these Component Units during fiscal year 2016 amounted to $99,337,099, $5,068,307 and $1,944,490, respectively, and are reflected in the Component Units’ financial statements. In addition to the statewide plans mentioned above, the Community College also offers to its employees two single-employer, defined contribution pension plans. The State of Maryland made "on behalf" employer contributions totaling $857,411 to these plans during fiscal year 2016. The Revenue Authority established a single-employer, defined contribution pension plan for its employees on July 1, 1987. Detailed information concerning these plans may also be obtained from the separately issued financial reports of these Component Units.
(10) Postemployment Benefits Other Than Pensions
(a) Plan Description
In addition to providing pension plan benefits, the County also extends certain health care and life insurance benefits to retired persons (the Plan). The legal authority for providing these benefits was established by the County Council, Executive Orders 42-1980 and 43A-1980, "Continuation of Life and Health Benefits at Retirement", and certain collective bargaining agreements form the legal basis for providing such benefits to retirees of the Primary Government. The Plan is a single employer defined benefit health care plan. Effective June 25, 2008, the County established the Prince George’s County, Maryland Non-Pension Post Employment Benefits Trust Fund to hold all contributions made by the County together with any income, gains or profits and taking into account any losses. A description of the types of benefits and eligibility requirements is summarized below:
Medical Insurance
- All State Retirement and Pension System of Maryland, Police, Fire Service, Correctional Officers’ Comprehensive, and Deputy Sheriffs’ Comprehensive Pension Plan retirees who
are enrolled in a qualified plan at the time of retirement may continue this benefit.
Life Insurance
- Reduced coverage is available to all State Retirement and Pension System of Maryland, Police, Fire Service, Correctional Officers’ Comprehensive, and Deputy Sheriffs’ Comprehensive Pension Plan retirees.
Vision Care and Prescription Drug Insurance
- The County pays premium costs of this benefit for Police, Fire Service, Correctional Officers’ Comprehensive, and Deputy Sheriffs’ Comprehensive Plan retirees. State
Retirement and Pension System of Maryland retirees pay 100% of the monthly cost for vision care and 75% for prescription insurance. The County pays the remaining 25% of prescription coverage.
The Plan is classified by the Primary Government as a Trust Fund and separate financial statements are prepared using the accrual basis of accounting. Complete separate financial statements may be obtained at the following address: Prince George's County Office of Personnel, 1400 McCormick Drive, Room 110, Largo, Maryland 20774.
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(b) Funding Policy
The County negotiates the contribution percentages between the County and the plan members through union contracts and personnel policy. A non-public safety and public safety retiree pays the same percentage of the premium contribution for the HMOs (20%), POS/PPO (25%), and dental (100%) plans. Non-public safety retirees pay 10% to 100% of the premium cost for each of the prescription and vision plans; whereas, the public safety retirees pay 1% to 10% of the premium contribution for each of the same two plans. The public safety group bargained these premium contributions for the retirees of this group during prior bargaining negotiations. The premium contribution share outlined above applies to a retiree who qualifies for retirement under their specified pension plan and is enrolled in the plans at the time of retirement. The County contribution is based on projected pay-as-you- go financing requirements with an additional amount to prefund benefits as approved in the annual budget. The County contributed $30.6 million, during fiscal year 2016 for current employer premiums (approximately 68% of total premium contributions). Plan members contributed $13.2 million (approximately 29% of total premium contributions) to the OPEB Plan.
(c) Annual Other Postemployment Benefit (OPEB) Costs
Annual OPEB costs (AOC) are the actuarially determined annual required contribution (ARC) to the OPEB plan. The net OPEB obligation (NOPEBO) represents the difference between the AOC and the actual employer contributions. The County’s AOC for fiscal year 2016 was $125.6 million. Actual contributions for the fiscal year were $31.8 million. The resulting NOPEBO of $93.8 million along with the $464.9 million NOPEBO from fiscal year 2015, results in a total NOPEBO at the end of the year of $558.7 million. Three-year trend information for the County’s AOC, percentage of AOC contributed to the plan, and net NOPEBO are as follows (in thousands):
Year Ended NOP EB O Decrease NOP EB O P ercentage o f
June 30 beginning o f year A RC Interest A djustment To tal in NOP EB O end o f year A OC Co ntributed
2016 $ 464,906 125,978 16,936 (17,287) 125,627 (31,785) 558,748 25% 2015 $ 378,336 119,906 13,242 (13,517) 119,631 (33,061) 464,906 28% 2014 270,753 143,837 10,803 (10,320) 144,320 (36,737) 378,336 25%
A nnual OP EB Co st (A OC)
(d) Funding Status and Funding Progress
The following is the funded status for the OPEB plan as of July 1, 2014, the most recent actuarial valuation date:
A ctuarial Value o f A ssets
A ctuarial A ccrued Liability (A A L)
Unfunded A A L (UA A L) Funded Ratio Co vered P ayro ll
UA A L as a P ercentage o f Co vered payro ll
(a) (b) (b-a) (a/b) (c ) ((b-a)/c)
48,140$ 1,651,196$ 1,603,056$ 2.92% 524,603$ 305.58%
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(e) Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefits costs between employers and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The actuarial assumptions used in the latest valuation are as follows:
A ctuarial valuatio n date 07/01/2014
A ctuarial co st metho d P ro jected unit credit co st metho d
Inflatio n rate 2.75%
Disco unt rate 3.5% which is based o n paygo funding
Health care trends
M edical P re-65 8.5% in 2013 with annual decrease o f 0.375% thro ugh 2022, 0.125% decrease in 2023, and remain at 5% annually thereafter
M edical 65 + 7% in 2013 with annual decrease o f 0.25% thro ugh 2020, and remain at 5% annually thereafter
P rescriptio n 8% in 2013 with annual decrease o f 0.375% thro ugh 2021, and remain at 5% annually thereafter
Visio n and administrative expenses 4%
A mo rtizatio n metho d Level percent o f payro ll, o pen Remaining amo rtizatio n perio d 30 years
Actuarial valuations of the OPEB Plan involve estimates of the value of reported amounts and assumptions about the probability of future events. Actuarially determined amounts are subject to revisions as actual results are compared to past expectations and new estimates are made about the future. The schedules of funding progress, presented as required supplementary information following the notes to the financial statements, present multiyear trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
(f) Component Units
The Housing Authority and the Memorial Library participate in the County’s retiree life and health insurance benefit plan. Fiscal year 2016 employer contributions to the Plan by the Housing Authority and the Memorial Library were $87,000 and $337,793, respectively. The Board of Education and the Community College operate separate retiree benefit plans. The Board of Education paid employer contribution of $111.1 million and recognized a NOPEBO of $1.25 billion in fiscal year 2015. The Community College contributed $4.4 million in employer contribution with an NOPEBO of $1.3 million. Separate financial statements prepared for the Board of Education, Housing Authority, Memorial Library, and Community College, are available to the general public [see note 1(a)], and reflect detailed information relevant to their OPEB plans.
(g) Other Benefits - LOSAP
In 1974, the County created the Length of Service Awards Program (LOSAP). LOSAP provides 597 annuities to former volunteer members of the County's fire companies or rescue squads who met certain age and service criteria. Benefits totaling $3,414,198 in fiscal year 2016 also include survivor annuities and lump-sum death benefits and are reported in the Primary Government's General Fund, on a "pay-as-you-go" basis. The most recent actuarial review was performed as of July 1, 2006. If the County were to implement an advance funding program, the estimated contribution beginning with fiscal year 2008 would be approximately $1.8 million. The unfunded liability of approximately $21.1 million as of July 1, 2006, was projected to be funded over 30 years.
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(11) Unavailable and Unearned Revenue
Unavailable revenue reported in the General and other Governmental Funds represents tax billings and other receivables not available at June 30, 2016 for funding of current operations. These amounts are reported as a deferred inflow of resources in the governmental funds. Unearned revenue in the Federal and State Aided Programs Fund represents the unexpended portion of funds received for various grants and unrealized revenue relating to notes receivable arising from the sale of property. The Enterprise Funds' unearned revenue represents billings or receipts for future services collected in advance. Unearned revenue in the Internal Service funds is a combination of premiums paid in advance for life and health benefits, and accumulated premium contributions of component units in excess of related risk management expenses. Unearned revenue reported in the Government-wide statements represents billings and receivables collected in advance related to items such as property tax deferrals and grant programs. The following is a summary of all primary government deferred and unearned revenue as of June 30, 2016:
Unavailable Unearned To tal
General Fund
Inco me Taxes Receivable 59,074,723$ -$ 59,074,723$
P ro pery Taxes Reveivable 4,377,598 - 4,377,598
No tes Receivable - 15,418,089 15,418,089
Subto tal 63,452,321 15,418,089 78,870,410
Federal A nd State A ided P ro grams
Grant Drawdo wns in Excess o f Expenditures - 46,017,671 46,017,671
Internal Service Funds
Receipt o f Revenue prio r to Service P ro vided - 8,126,262 8,126,262
63,452,321$ 69,562,022$ 133,014,343$
12) Deferred Compensation Plans
The County offers its employees various Deferred Compensation Plans, which have been created in accordance with Internal Revenue Code Section 457. The plans permit employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or an unforeseen emergency. All assets and income deferred by County plan participants are held in trust for the exclusive benefit of the participants and their beneficiaries and are not reflected in the accompanying financial statements.
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(13) Long-term Liabilities
(a) Outstanding Long-term Liabilities
The following is a summary of all primary government outstanding long-term liabilities as of June 30, 2016:
A mo unts Due Within One Year
A mo unts Due in M o re Than One Year
A mo unts Due Within One Year
A mo unts Due in M o re Than One
Year A mo unts Due
Within One Year A mo unts Due in
M o re Than One Year To tal
B o nds payable
General o bligatio n bo nds 92,905,000$ 1,193,963,805 9,800,000 178,032,633 102,705,000 1,371,996,438 1,474,701,438
B o nd premium - 122,925,719 - - - 122,925,719 122,925,719
To tal bo nds payable 92,905,000 1,316,889,524 9,800,000 178,032,633 102,705,000 1,494,922,157 1,597,627,157
No tes payable 10,671,700 55,045,500 5,278 6,475,001 10,676,978 61,520,501 72,197,479
Capital lease o bligatio ns 11,508,661 30,453,739 - - 11,508,661 30,453,739 41,962,400
Estimated liabilities o n pending claims 49,469,753 125,422,253 - - 49,469,753 125,422,253 174,892,006
44,488,186 32,552,834 2,059,514 156,603 46,547,700 32,709,437 79,257,137 Net pensio n liability - 1,512,318,094 - 22,328,688 - 1,534,646,782 1,534,646,782 OP EB o bligatio ns - 558,747,985 - - - 558,747,985 558,747,985 Landfill clo sure / po stclo sure - - 1,265,273 75,428,596 1,265,273 75,428,596 76,693,869
Other lo ng-term liabilities 116,138,300 2,314,540,405 3,330,065 104,388,888 119,468,365 2,418,929,293 2,538,397,658
To tal lo ng-term liabilities 209,043,300$ 3,631,429,929 13,130,065 282,421,521 222,173,365 3,913,851,450 4,136,024,815
Go vernmental A ctivities B usiness-type A ctivities To tal
Co mpensated absences and terminatio n benefits payable
(b) Bonded Debt Transactions
The following is a summary of bonded debt transactions of the County for the fiscal year ended June 30, 2016:
Governmental Activities
Solid Waste Stormwater Management Total
Component Units Total
Bonded debt at July 1, 2015 $ 1,268,947,000 36,923,000 153,060,000 1,458,930,000 51,585,000 1,510,515,000 Debt issued 165,346,805 3,954,545 4,848,650 174,150,000 - 174,150,000 Debt retired (89,000,000) (3,555,000) (7,460,000) (100,015,000) (5,340,000) (105,355,000) Debt defeased (58,425,000) (2,260,000) (5,470,000) (66,155,000) - (66,155,000)
Bonded debt (including current portion) As of June 30, 2016 1,286,868,805 35,062,545 144,978,650 1,466,910,000 46,245,000 1,513,155,000
Less current portion (92,905,000) (1,920,000) (7,880,000) (102,705,000) (5,590,000) (108,295,000) Noncurrent portion as of of June 30, 2016 $ 1,193,963,805 33,142,545 137,098,650 1,364,205,000 40,655,000 1,404,860,000
Primary Government Business-type Activities
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(c) Debt Service Requirements The annual requirements to amortize all bonded debt outstanding as of June 30, 2016 are as follows:
Co mpo nent Units To tal
P rincipal Interest P rincipal Interest P rincipal Interest To tal P rincipal Interest
2017 $ 92,905,000 50,029,119 1,920,000 1,431,058 7,880,000 6,064,923 160,230,100 5,590,000 2,391,969 168,212,069
2018 97,765,000 49,039,700 2,100,000 1,409,610 7,970,000 5,762,094 164,046,405 5,865,000 2,123,535 172,034,940
2019 99,610,000 44,714,032 2,110,000 1,313,385 8,345,000 5,370,594 161,463,011 6,145,000 1,839,554 169,447,565
2020 101,933,639 40,022,541 2,378,030 1,210,225 8,993,331 4,950,178 159,487,944 2,030,000 1,539,102 163,057,046
2021 103,421,033 35,223,597 2,370,627 1,099,939 8,978,339 4,514,719 155,608,254 2,125,000 1,436,886 159,170,140
2022 - 2026 502,944,543 109,158,500 11,709,129 3,878,062 44,396,328 16,474,434 688,560,996 12,225,000 5,301,204 706,087,200
2027 - 2031 230,912,590 31,148,065 8,951,759 1,605,045 40,450,652 7,841,199 320,909,310 12,265,000 1,538,338 334,712,648
2032 - 2036 55,817,000 4,041,515 3,393,000 277,535 17,965,000 1,123,175 82,617,225 - - 82,617,225
2037 1,560,000 31,200 130,000 2,600 - - 1,723,800 1,723,800 $ 1,286,868,805 363,408,270 35,062,545 12,227,458 144,978,650 52,101,317 1,894,647,045 46,245,000 16,170,588 1,957,062,633
Year ended June 30,
P rimary Go vernment B usiness-type A ctivities
So lid Waste Sto rmwater M anagement Go vernmental A ctivities
(d) Bonded Debt Details
Details of the County's long-term bonded debt at June 30, 2016 are as follows:
Interest Calendar Year Amount Amount Primary Government: Rates Maturity Dates Issued Outstanding
Governmental Activities: General obligation bonds:
1.615 - 6.05% 2036 2,022,556,805$ 1,286,868,805$
Total governmental activities long-term bonded debt 2,022,556,805$ 1,286,868,805$
2003, 2006-2007B, 2008, 2009A, 2009B CPI; 2009A TQSC, 2009B TESC; 2010 A/B; 2011, 2011A/11B, 2013 A/B/C, 2014A/B, 2016A/B
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Interest Calendar Year Amount Amount Business-type Activities: Rates Maturity Dates Issued Outstanding
2.50 - 5.50% 2034 179,728,650$ 144,978,650$
2.50 - 5.50% 2036 104,697,545$ 35,062,545$
Total business-type activities long-term bonded debt 284,426,195$ 180,041,195$ Total primary government long-term bonded debt 2,306,983,000$ 1,466,910,000$
Component Units:
Revenue bonds: Housing Authority -
Capital Fund Securitization Revenue Bonds 2.0 - 4.55% 2023 1,465,000$ 690,000$
Industrial Development Authority -
2003A refunding lease revenue 2.0 - 5.125% 2019 27,430,000 12,040,000 2003B subordinated lease revenue 3.5 - 4.75% 2030 22,085,000 14,310,000 2009 taxable lease revenue bonds 0.64 - 6.169% 2030 23,850,000 19,205,000 Total Component Units revenue bonds 74,830,000$ 46,245,000$ Total long-term bonded debt 2,381,813,000$ 1,513,155,000$
2006, 2007A, 2007B, 2008, 2010 A/B, 2011A/B, 2013 A/B/C, 2014 A, 2016 B stormwater management - general obligation 2003B, 2005, 2007B, 2008, 2009A and 2009B, 2010A/B, 2011A/B, 2013A/B/C, 2014A/B, 2016 A/B solid waste management system - general
(e) Bond Additions On June 07, 2016, the Primary Government issued $115,800,000 of General Obligation Consolidated Public Improvement Bonds, Series 2016A dated June 22, 2016 maturing on July 1
of the years 2017 through 2036. To provide funds for planning, construction, reconstruction, extension, enlargement, demolition, improvement or acquisition of certain capital projects. Of the total $115,800,000 bonds issued, $1,965,000 for Solid Waste is reported as business-type activities and the remainder as governmental activities.
(f) Bond Authorizations
The County Charter requires that any borrowing to finance capital projects must be authorized by an enabling act of the General Assembly of Maryland or by an enabling act of the County Council. The County Council is required by the Charter to submit to voter referendum any act enabling the County to borrow money to finance capital projects, except for school construction bonds. In addition, the County Council is required by the Charter to adopt a bond authorization act before bonds may be issued. The amount of bonds enabled and authorized but not yet issued at June 30, 2016 is summarized as follows:
Enabled Amount Authorized and
Unissued amount Enabled by authority of the State of Maryland:
Health 22,144,000$ - Roads, parking and mass transit 1,025,398,000 220,235,000 Public buildings 692,710,765 117,934,000 Public Safety 634,913,000 105,071,000
2,375,165,765$ 443,240,000
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The legal debt limit and margin at June 30, 2016 were $5,274,854,558 and $4,305,972,523 respectively. The County was in compliance with all significant bond covenants at June 30, 2016.
(g) Advance Refunding
On June 07, 2016, the Primary Government issued $58,350,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2016B, dated June 22, 2016 to advance refund $66,155,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 2008, dated June 1, 2008. Of the $66,155,000 advance refunded bonds, $7,730,000 ($2,260,000 for Solid Waste and $5,470,000 for Stormwater) is reported as business-type activities. The remaining $58,425,000 Refunded Bonds relate to governmental activities. The net Refunding Bond proceeds of $71,750,273 were deposited in an irrevocable trust with an escrow agent for purchase of U.S. government securities, together with interest earnings and cash on hand to pay the principal, interest and early redemption premium on all refunded bonds referenced above. The $66,771 deferred inflow of resources generated by this refunding will be amortized over the remaining life of the refunded debt. The refunding was designed to restructure debt to effect reduction in overall debt service of $12,000,446 and to net economic present value debt service savings of $6,053,394.
(h) Prior Period Defeasance of Debt
In prior periods, the County defeased or participated in the defeasance of certain long-term bonded debt. The proceeds of new bonds were placed in an irrevocable trust to provide for future debt service payments on the old debt. Accordingly, the trust account assets and the liability for the defeased debt are not included in the County's financial statements. A general description of the defeased debt and the amounts outstanding at June 30, 2016 follows: x On August 3, 2000, the Primary Government issued $8,370,000 of Water Quality Refunding Bonds, Series 2000B, dated August 3, 2000 to advance refund $7,770,000 of certain
selected callable maturities of the County’s (i) General Obligation Stormwater Management Bonds, Series 1993, dated February 1, 1993, and (ii) Unlimited Tax General Obligation Stormwater Management Bonds, Series 1997, dated June 15, 1997. At June 30, 2016, $420,000 of the refunded bonds outstanding that mature in fiscal year 2017 are considered defeased.
x On July 15, 2003, the Primary Government issued $90,585,000 of General Obligation Public Improvement Refunding Bonds, Series 2003B, dated June 15, 2003 to advance refund
$94,935,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 1994, dated January 15, 1994, (ii) General Obligation Consolidated Public Improvement Bonds, Series 1995, dated May 1, 1995, (iii) General Obligation Consolidated Public Improvement Bonds, Series 1996, dated May 15, 1996, (iv) General Obligation Consolidated Public Improvement Bonds, Series 1997A, dated June15, 1997. Of the $94,935,000 advance refunded bonds, $7,785,000 are bonds of the Solid Waste Enterprise Fund. The remaining $87,150,000 refunded bonds relate to governmental activities. At June 30, 2016, $800,000 of the outstanding refunded bonds that mature in the year 2017 are considered defeased.
x On December 15, 2004, the Primary Government issued $141,130,000 of General Obligation Public Improvement Bonds, 2004 Refunding Series A, B, C, D, E and F, dated
December 1, 2004 to advance refund certain portions of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 1996 (ii) General Obligation Public Improvement Bonds, Series 1997A, (iii) General Obligation Public Improvement Bonds, Series 1998, (iv) General Obligation Public Improvement Bonds, Series 1999, (v) General Obligation Public Improvement Bonds, Series 2000, and (vi) General Obligation Public Improvement Bonds, Series 2001. Of the $141,170,000 advance refunded bonds, $8,490,000 are bonds of the Solid Waste Enterprise Funds. The remaining $132,680,000 Refunded Bonds relate to governmental activities. At June 30, 2016, $13,340,000 of the refunded bonds outstanding that mature in the years 2017 through 2018 are considered defeased.
x On June 21, 2007, the Primary Government issued $80,735,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2007B, dated June 1, 2007 to (a)
currently refund $1,600,000 of certain maturities of the County’s Unlimited Tax General Obligation Stormwater Management Bonds, Series 1997B and b) advance refund certain portions of the County’s (i) Consolidated Public Improvement Bonds, Series 1998, (ii) Consolidated Public Improvement Bonds, Series 1999, (iii) Consolidated Public Improvement Bonds, Series 2000, (iv) Consolidated Public Improvement Bonds, Series 2001, and (v) Consolidated Public Improvement Bonds, Series 2003A. Of the $80,070,000 advance refunded bonds, $7,960,000 are bonds of the Stormwater Enterprise Fund, $2,710,000 are bonds of the Solid Waste Enterprise Fund and the remaining $69,400,000 refunded bonds relate to governmental activities. At June 30, 2016, $79,470,000 of the refunded bonds outstanding that mature in the years 2017 through 2024 are considered defeased.
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x On September 15, 2011, the Primary Government issued $182,375,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2011B, dated September 27, 2011 to advance refund $201,895,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 2001, dated November 28, 2001, (ii) General Obligation Consolidated Public Improvement Bonds, Series 2002, dated September 15, 2002, (iii) General Obligation Consolidated Public Improvement Bonds, Series 2003 A, dated June 15, 2003, and (iv) General Obligation Consolidated Public Improvement Bonds, Series 2004, dated June 15, 2004. Of the $201,895,000 advance refunded bonds, $7,440,000 ($4,570,000 for Stormwater and $2,870,000 for Solid Waste) is reported as business-type activities. The remaining $194,455,000 Refunded Bonds relate to governmental activities. At June 30, 2016, $150,830,000 of the refunded bonds outstanding that mature in the years 2017 through 2025 are considered defeased.
x On February 20, 2013, the Primary Government issued $200,390,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2013B, dated February 5, 2013 to advance refund $190,055,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, Series 2005, dated Jul 1, 2005, (ii) General Obligation Consolidated Public Improvement Bonds, Series 2006, dated May 15, 2006, and (iii) General Obligation Consolidated Public Improvement Bonds, Series 2007 A, dated June 1, 2007. Of the $190,055,000 advance refunded bonds, $8,865,000 ($6,765,000 for Stormwater and $2,100,000 for Solid Waste) is reported as business-type activities. The remaining $181,190,000 Refunded Bonds relate to governmental activities. At June 30, 2016, $190,055,000 of the refunded bonds outstanding that mature in the years 2017 through 2028 are considered defeased.
x On September 16, 2014, the Primary Government issued $28,800,000 of General Obligation Consolidated Public Improvement Refunding Bonds, Series 2014B, dated September
30, 2014 to advance refund $30,305,000 of certain maturities of the County’s (i) General Obligation Consolidated Public Improvement Bonds, 2004 Refunding Series C, dated December 1, 2004, (ii) General Obligation Consolidated Public Improvement Bonds, 2004 Refunding Series D, dated December 1, 2004, and (iii) General Obligation Consolidated Public Improvement Bonds, Refunding Series E, dated December 1, 2004, (iv) General Obligation Consolidated Public Improvement Bonds, 2004 Refunding Series F, dated December 1, 2004. Of the $30,305,000 advance refunded bonds, $1,325,000 ($1,325,000 for Solid Waste) is reported as business-type activities. The remaining $28,980,000 Refunded Bonds relate to governmental activities. At June 30, 2016, $13,370,000 of the refunded bonds outstanding that mature in the years 2017 through 2018 are considered defeased.
(14) Conduit Debt Transactions
The County encourages private industry to locate and remain in the County by, among other things, the issuance of tax exempt Economic Development Revenue Bonds, which bear the County's name and benefit the private enterprise. The funds provided from the sale of such debt are used for the public interest, such as for hospital construction or expansion of private businesses to increase employment and the County's tax base. These bonds do not constitute indebtedness or a charge against the general credit or taxing power of the County. The bond indentures explicitly state the absence of any legal obligation by the County to repay the indebtedness. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2016, there were one hundred and seventy series of Economic Development Revenue Bonds outstanding. The aggregate principal amount, for the one series issued after July 1, 1995 that remain outstanding, is $48.3 million. The aggregate principal amount payable on June 30, 2016 for the one hundred and sixty-eight series issued prior to July 1, 1995, could not be determined; however, their original issue amounts totaled approximately $1.1 billion.
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(15) Special Taxing Districts
The County has issued various special taxing district bonds pursuant to Section 10-279 of the Prince George’s County Code and Section 9-1301 of Article 24 of the Annotated Code of Maryland. Neither the full faith and credit nor the taxing power of the County is pledged for the payment of these bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Details of the outstanding debt as of June 30, 2016 are as follows.
B o nd P ro ject Issuance Date A mo unt Issued A mo unt Outstanding Final M aturity
P rince Geo rge's Co unty, M aryland Taxable Subo rdinate Special Obligatio n B o nds, Series 2005
Natio nal Harbo r Co nventio n Center P ro ject 05/11/2005 95,000,000$ 82,405,000 07/01/2033
P rince Geo rge's Co unty, M aryland Special Tax District B o nds, Series 2005 Victo ria Falls P ro ject 09/08/2005 12,000,000 11,210,000 07/01/2035
P rince Geo rge's Co unty, M aryland Special Obligatio n B o nds, Series 2005 Natio nal Harbo r P ro ject 09/21/2005 65,000,000 58,310,000 07/01/2034
P rince Geo rge's Co unty, M aryland Special Obligatio n B o nds, Series 1997A
Wo o dview Village Impro vements P ro jects 10/25/2006 7,450,000 4,930,000 07/01/2026
P rince Geo rge's Co unty, M aryland Special Obligatio n Refunding B o nds, Series 2006
Wo o dview Village P hase II Infrastructure Impro vements 11/20/2006 8,205,000 6,360,000 07/01/2032
P rince Geo rge's Co unty, M aryland Taxable Subo rdinate Special Obligatio n B o nds, Series 2008
Natio nal Harbo r Co nventio n Center P ro ject 04/02/2008 50,000,000 50,000,000 09/01/2037
P rince Geo rge's Co unty, M aryland Special Obligatio n B o nds, Series 2009 Natio nal Harbo r P ro ject 01/27/2009 35,000,000 34,357,000 01/01/2039
P rince Geo rge's Co unty Wo o dmo re To wne Centre at Glenarden Special Obiligatio n Develo per No te, Series 2012 Wo o dmo re To wn Center 01/18/2012 17,000,000 14,516,722 01/01/2032
P rince Geo rge's Co unty B randywine Sho pping Center P hase II Special Obligatio n Develo per No tes, Series 2014A B radywine Sho pping Center 05/06/2014 2,220,000 1,963,359 01/01/2043
P rince Geo rge's Co unty B randywine Sho pping Center P hase II Special Obligatio n Develo per No tes, Series 2014B B radywine Sho pping Center 05/06/2014 2,280,000 2,016,423 01/01/2043
P rince Geo rge's Co unty To wn Center at Camp Springs Special Obligatio n Develo per No tes, Series 2014A Camp Springs To wn Center 06/30/2014 4,900,000 4,900,000 01/01/2043
P rince Geo rge's Co unty, M aryland Special Obligatio n Develo per No te, Series 2015 Calvert Tract P ro ject 09/17/2015 3,000,000 200,000 01/01/1935
302,055,000$ 271,168,504
Prince George's County, Maryland Notes Financial Statements
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(16) Other Long-term and Short-term Debt
The following represents the changes in other long-term liabilities for governmental activities: B alance B alance
July 1, 2015 A dditio ns Reductio ns June 30, 2016 Net P ensio n Liability 1,317,668,013$ 222,416,000 27,765,919 1,512,318,094$ OP EB o bligatio ns 464,906,168 125,627,000 31,785,183 558,747,985 Co mpensated absences and terminatio n benefits payable 72,805,473 48,723,733 44,488,186 77,041,020 Estimated liabilities o n pending claims and judgements 158,496,367 115,873,251 99,477,612 174,892,006 Capital lease o bligatio ns 41,572,611 10,161,624 9,771,835 41,962,400 No tes payable:
P urchase agreements and certificates o f participatio n 72,116,502 - 10,376,502 61,740,000 M ILA lo ans 49,867 - 49,867 - Co mmercial B uilding Lo an Fund 4,038,000 - 322,000 3,716,000 M aryland CDA Infrastructure Financing 339,000 - 77,800 261,200 To tal no tes payable 76,543,369 - 10,826,169 65,717,200
2,131,992,001$ 522,801,608 224,114,904 2,430,678,705$
The following represents the changes in other long-term liabilities for business-type activities: B alance B alance
July 1, 2015 A dditio ns Reductio ns June 30, 2016 Co mpensated absences and terminatio n benefits payable 2,163,556$ 2,112,075 2,059,514 2,216,117$ Landfill clo sure / po stclo sure co sts 83,101,471 - 6,407,602 76,693,869 Net P ensio n Liability 16,718,566 6,791,751 1,181,629 22,328,688 No tes payable:
P urchase agreements and certificates o f participatio n - 6,480,279 - 6,480,279 To tal no tes payable - 6,480,279 - 6,480,279
101,983,593$ 15,384,105 9,648,745 107,718,953$
Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for internal service funds are included as part of the above for governmental
activities. At year-end, $1,476,162 ($1,254,898 within one year, and $221,564 due in more than one year) of internal service fund compensated absences are included in the above amounts. For the remainder of compensated absences the General Fund normally liquidates over 90 percent and the remainder is liquidated by the Federal and State Aided Programs Special Revenue Fund. Also, for governmental activities net pension obligations, net other post employment benefit obligations, and capital lease obligations are generally liquidated by the General Fund. Estimated liability on pending claims and judgments is reported in risk management internal service funds and will be liquidated by those funds. Notes payables are generally liquated by the General Fund with the exception of the Commercial Building Loan Fund which is liquidated by the Federal and State Aided Programs Special Revenue Fund.
a) Capital Lease Obligations
The County entered into agreements with Grant Capital Management to finance the purchase of snow removal equipment and Fire/EMS ambulances in April of 2011; snow removal equipment and Fire/EMS ambulances in May 2013; Fire/EMS ambulances and other Public Safety vehicles in June 2014; and Public Safety and other County agency vehicles and equipment in June 2015. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date.
Prince George's County, Maryland Notes Financial Statements
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The assets acquired through capital leases are as follows:
Governmental Activities
Asset: Equipment 44,562,106$ Less: Accumulated depreciation (17,318,227) Total 27,243,879$
The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2016, were as follows:
Governmental Year ending June 30 Activities
2017 12,021,466$ 2018 10,377,657 2019 8,733,847 2020 5,608,076 2021 3,569,286 2022 1,530,495 2023 1,530,495 Total minimum lease payments 43,371,322 Less: amount representing interest (1,408,922) Present value of minimum lease payments 41,962,400$
b) Pension Liability and OPEB Obligations
The Net Pension Liability represents the difference between the actuarially determined total pension liability and plan fiduciary net position and Net OPEB obligations represents the difference between the actuarially required and the actual employer contributions. The balance as of June 30, 2016 for the Pension and OPEB liabilities was $1,534,646,782 (see note 9 – Pension Plans) and $558,747,985 (see note 10 – Postemployment Benefits Other Than Pensions), respectively.
Prince George's County, Maryland Notes Financial Statements
85
c) Compensated Absences and Termination Benefits
County employees are granted vacation and sick leave in varying amounts. In the event of termination, an employee is reimbursed for accumulated vacation in full, and for sick leave in varying amounts based on years of service. Participants in the plans administered by the State Retirement and Pension System of Maryland may apply accrued sick leave as service credits toward retirement.
Vested or accumulated vacation and sick leave that relates to employees who terminated employment with the County on or before June 30, 2016 are reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation and sick leave that do not meet the above criteria are not reported in the governmental funds. For purposes of reporting in the County’s government-wide financial statements and the proprietary fund financial statements, vested or accumulated vacation and sick leave are recognized as an expense and liability as the benefits accrue to employees. Current amounts are such amounts expected to be paid within one year.
The liability includes an accrual at the current rate for ancillary salary-related payments (i.e., employer’s share of Social Security and Medicare taxes) associated with its ultimate liquidation. The following is a summary of compensated absences and termination benefits payable at June 30, 2016 (in thousands):
Governmental Activities
Solid Waste Stormwater Management Total Total
Component Units
Primary Government $ 77,041 912 1,304 2,216 79,257 -
Component Units:
Board of Education - - - - - 69,990
Housing Authority - - - - - 547
Memorial Library - - - - - 1,780
Community College - - - - - 2,367
77,041 912 1,304 2,216 79,257 74,684
Less current portion 44,488 833 1,227 2,060 46,548 4,189 Total long-term portion $ 32,553 79 77 156 32,709 70,495
Primary Government
Business-type Activities
Prince George's County, Maryland Notes Financial Statements
86
d) Notes Payable
(i) Purchase Agreement and Certificates of Participation Notes Payable
The County has entered into certain financing/purchasing agreements for the purpose of acquiring real estate, equipment, textbooks, vehicles, and school buses. Under these agreements, the financing amounts are deposited with a fiscal escrow agent who will pay the vendors as the County takes delivery of the assets. The County makes periodic loan repayments directly to the lender over a specified period of time.
The interest rates on all financing/purchasing agreements in force range from 2.0% to 6.5%. The liability for the debt is carried as notes payable in various funds as listed below. Following is a schedule by year of future principal and interest payments as of June 30, 2016 (in thousands):
Principal Interest Principal Interest Total
$ 10,235 2,538 437 56 13,266
5,435 2,194 886 101 8,616
5,520 1,957 902 85 8,464
5,670 1,706 917 70 8,363
5,780 1,448 933 54 8,215 22,240 3,664 2,405 63 28,372
6,860 890 - - 7,750
Total note payments $ 61,740 14,397 6,480 429 83,046
Primary Government
2017
2018
Governmental Activities Business-type Activities
Solid Waste Year ending
June 30,
2027- 2031
2022- 2026 2021
2019
2020
Prince George's County, Maryland Notes Financial Statements
87
(ii) Other General Long-Term Debt Notes Payable
The Primary Government is obligated for promissory notes in the amount of $49,867, payable to the Maryland Industrial Land Act (MILA) of the State of Maryland with interest rate of 6.9%. The loan was paid in full September 15, 2015.
The Primary Government entered into an agreement with HUD to administer a $10,000,000 Section 108 Commercial Building Loan Fund. The first project financed under the loan fund was a $2,000,000 loan paid to a private partnership for land acquisition. The first principal payment of $165,000 was paid August 1, 2002. The loan was paid in full on August 1, 2011. The second project financed under the loan fund was a $2,600,000 loan paid to a developer for the construction of a restaurant. The developer is responsible for servicing the loan balance that matures August 1, 2022, at rates ranging from 1.21% to 5.69%. At June 30, 2016, $1,485,000 remains outstanding. The third project financed under this loan was a $1,900,000 loan paid to a developer for land acquisition and the construction of rental housing units. The first principal payment of $70,000 was paid on August 1, 2006. The developer is responsible for servicing the loan balance that matures August 1, 2023, at rates ranging from 2.31% to 5.97%. At June 30, 2016, $1,068,000 was outstanding. The fourth project financed under this loan was a $1,837,000 loan paid to a sign manufacturing company for building acquisition and construction renovations to relocate the company. The first principal payment of $46,000 was paid on August 1, 2006. The company is responsible for servicing the loan balance that matures on August 1, 2024, at 4.41%. The outstanding balance as of June 30, 2016 was $1,163,000. On March 10, 1999, the Primary Government issued for the benefit of the Community Development Administration ("CDA"), a division of the Maryland Department of Housing and Community Development, a general obligation bond designated as "Prince George's County, Maryland Infrastructure Bond, 1999 Series A" in the amount of $1,217,800 secured by the full faith and credit of the County. Secured by the pledges of seven participating local governments, including the Primary Government, the CDA issued on March 10, 1999 Infrastructure Financing Bonds (MBIA Insured) 1999 Series A in the aggregate principal amount of $6,985,000. The Primary Government used the proceeds to provide funds to refinance certain outstanding loans and to purchase a fire truck for Accokeek Volunteer Fire Department, Inc. ("AVFD") and to pay the costs of issuance of bonds. Because the County issued the obligation to obtain a loan for the benefit of AVFD, the latter executed a promissory note on March 11, 1999 promising to pay to the Primary Government the principal sum of $1,217,800, plus interest on the unpaid principal amount. The debt service payment made by AVFD to the Primary Government equals the Primary Government's debt service payments to the CDA. The debt is repayable to the State in 20 annual installments with interest rates ranging from 4.125% to 5.0%, and matures May 1, 2019. At June 30, 2016, $261,000 remained outstanding. Following is a schedule by year of future principal and interest payments as of June 30, 2016 (in thousands):
Total Principal Interest Principal Interest
$ 354 199 83 13 649 368 180 87 9 644 400 158 91 5 654 432 135 - - 567 455 110 - - 565
1,707 155 - - 1,862 Total note payments $ 3,716 937 261 27 4,941
2022- 2026
CBLF
2018 2019 2020 2021
CDA Year ending
2017
Primary Government - Governmental Activities
Prince George's County, Maryland Notes Financial Statements
88
(17) Fund Balance Policy and Reporting
The County has not adopted a minimum fund balance policy for its governmental funds. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, and then unrestricted resources as they are needed, except for capital projects which use unrestricted resources first. Furthermore within the unrestricted fund balance the County will apply expenditures against committed, then assigned, and then unassigned amounts.
Stabilization Arrangement - Per voter referendum and Council Bills (CB-81-1992 & CB-6-2003) the County is required to maintain a Charter Mandated contingency reserve equal to 5% of the annual budget. Funds can only be used to meet a public emergency, which constitutes a sudden, unexpected or unforeseen condition or occurrence, creating an imminent hazard to life, health or property and requiring an immediate action, the Council may, by resolution and upon the recommendation of the County Executive, make emergency appropriations from contingent reserve. Withdrawals may be used only for appropriations which have become unfunded. The balance in the stabilization fund is disclosed in the table below. A schedule of fund balance classifications at June 30, 2016 follows:
Total General Fund Federal and State Aided Programs
Cap ital Projects Fund
Non-M ajor Funds
Restricted Fund Balances Restricted for contingencies:
148,391,975$ 148,391,975$ -$ -$ -$ - - - - -
1,197,212 - - 1,197,212 - 25,454,182 - - 25,454,182 - 1,726,915 - 1,726,915 - -
Retricted for other p urp oses 64,196 - - - 64,196
8,337,977 - - - 8,337,977 Unsp ent Proceeds from debt issuances: Equip ment p urchases 11,921,168 11,921,168 - - - Real estate p urchases 737,971 737,971 - - -
Total restricted fund balances 201,991,535$ 161,051,114 1,726,915$ 30,811,333$ 8,402,173$
Primary Government
Economic Stabiliztion
Infrastructure and develop ment
Debt Service
Domestic Violence
Health and human services
Educaton
Drug Enforcement and Educat ion
Prince George's County, Maryland Notes Financial Statements
89
Total General Fund Federal and State Aided Programs
Cap ital Projects Fund
Non-M ajor Funds
Nonsp endable: 2,134,534$ 2,134,534$ -$ -$ -$
Unrestricted - Committed Fund Balance Op erating Reserve 59,356,790$ 59,356,790 -$ -$ -$
2,322,523 - - 2,322,523 - Environmental 2,592,584 - - 2,592,584 -
Total committed fund balances 64,271,897$ 59,356,790 -$ 4,915,107$ -$
Unrestricted - Assigned Fund Balance -$ -$ -$ -$ -$
717,014 717,014 - - - 3,677,951 - - - 3,677,951
11,294,860 11,294,860
36,914,560 36,914,560 - - - Total assigned fund balances 52,604,385$ 48,926,434 -$ -$ 3,677,951$
Unassigned: 116,418,173$ 116,418,173$ -$ -$ -$
Total fund balance 437,420,524$ 387,887,045$ 1,726,915$ 35,726,440$ 12,080,124$
Prop erty Sales and Acquisitions Drug Enforcement and Education
Inventory
Economic Develop ment
Ap p rop riation of Fund Balance for Subsequent Year's Budget
Other
Infrastructure and develop ment
Prince George's County, Maryland Notes Financial Statements
90
(18) Encumbrances
Certain governmental funds use encumbrance accounting for budgetary purposes. Encumbrances represent claims against appropriations for purchase order and executed contracts that have not been expended. All outstanding encumbrances were closed as of three end of fiscal year 2016.
(19) Summary Disclosure of Significant Contingencies
(a) Litigation
In addition to those suits in which claims for liability are adequately covered by insurance, the County is involved in numerous lawsuits with a potential liability ranging up to $1.0 million. In the opinion of legal counsel and management, it is reasonably possible that some of these cases will be settled against the County, resulting in varying degrees of monetary damages.
(b) Contingent Liabilities
(i) Questioned Costs
The County participates in a number of Federally-assisted grant programs. These programs are currently under examination in accordance with Uniform Grant Guidance. The final results of this examination for fiscal year 2016 have not yet been determined. The amount of expenditures which may be disallowed by the granting agencies cannot be specifically determined at this time. The County expects any disallowed costs to be immaterial, as has been the case in previous audits.
(ii) Brown Station Road Landfill
The Primary Government owns and operates the Brown Station Road Landfill, which is accounted for in the Solid Waste Enterprise Fund. Phase I of the landfill was closed in September 1993 after 25 years of operation. Phase II of the landfill began operations on May 13, 1992 and approximately 77.2% of total estimated capacity has been utilized as of June 30, 2016. It is expected to operate through the year 2028.
To close both Phase I and Phase II of the landfill, State and Federal laws and regulations require the County to place a final cover on both landfill phases. (The closure and post- closure plan for both phases is pending final State approval.) These laws also require the County to perform certain maintenance and monitoring functions at the landfill site. In accordance with statutory requirements, the Primary Government estimates closure costs only for Phase I, of approximately $16.8 million ($14.2 million of which has been liquidated), and closure and 30-year post-closure costs for Phase II of $53.9 million. Estimated costs are "as if incurred" in fiscal year 2016 and may change due to inflation, technological enhancements, and revisions to State and Federal requirements - as well as any additional measures that may be undertaken to safeguard the quality of life for residents. These estimates are updated annually.
At June 30, 2016, the Primary Government has recorded an accumulated total liability for closure and post-closure costs of $43.6 million for Phases I and II based on the percentage of capacity of Phases I and II utilized to date multiplied by the total capacity of Phases I and II. As of June 30, 2016, the Primary Government's Solid Waste Enterprise Fund shows restricted assets of $94,371,263 for landfill closure costs for Brown Station Road Landfill as well as Sandy Hill Landfill.
(iii) Sandy Hill Landfill
On July 1, 1992, the Primary Government entered into a three-part agreement with The Maryland-National Capital Park and Planning Commission (M-NCPPC), a joint venture, to operate the Sandy Hill Landfill. The daily operations and responsibility to develop and to maintain the “Existing Landfill” through closure and one year of post-closure of this refuse disposal facility had been contracted to Waste Management, Inc., for the period May 1977 to March 2007. Since 2007, post-closure activities have been the responsibility of the County.
Prince George's County, Maryland Notes Financial Statements
91
As part of the 1992 Agreement, the County received $1,890,485 from M-NCPPC when responsibility for the landfill was assigned to the County. The funds are held in a Trust Fund for post-closure construction phase and maintenance of the Landfill and its environmental control facilities including monitoring. In May 1997, the County was granted a permit by the Maryland Department of the Environment (MDE) to vertically expand the operation. The Landfill stopped accepting waste in June 2000 and was certified closed by the State effective August 6, 2012. As with the Brown Station Road Landfill, State and Federal laws and regulations require a final landfill cover and 30 years of post-closure activities. The Primary Government has recorded an estimated liability for 30 years of post-closure costs of $33.1 million because this landfill is substantially full. Estimated costs for post-closure activities, are “as if incurred,” and will be updated annually for changes in technology, applicable regulations and inflation.
(c) Operating Leases
Under the terms of various operating lease agreements for facilities, the Primary Government's approximate future minimum annual rental payments for facilities are as follows (in thousands):
$ 14,343 14,542 14,737 10,526 10,736 55,935 58,641 51,980
$ 231,440 2032-2036
2020 2021
Year ending June 30,
2017 2018 2019
2022-2026 2027-2031
During fiscal year 2016, rent expense under these lease agreements amounted to approximately $15.5 million.
20) Joint Ventures
The County participates in the financial activities of certain entities providing services within the County, which are deemed joint venture activities. The joint ventures described in the following paragraphs are not reflected in the accompanying financial statements because the County has no equity interest in the operations of these entities. (a) Washington Suburban Transit Commission (WSTC)
The WSTC is a State of Maryland bi-county agency, which receives funds from Montgomery and Prince George's Counties, both of which participate in the Washington Metropolitan Area Transit Authority (WMATA), to construct and maintain a cohesive and uniform transportation system. WSTC is composed of seven members; two from each county, two members appointed by the Governor of Maryland, and one ex officio representative from the Maryland Department of Transportation. WSTC acts as a coordinator for transit-related information and provides a forum for the discussion, formulation and transmittal of Federal, state and local funds paid to WMATA on behalf of the Maryland region. The annual operating costs of WSTC are shared equally by Montgomery and Prince George’s Counties. The Primary Government’s share of these costs for fiscal year 2016 amounted to $122,137.
Prince George's County, Maryland Notes Financial Statements
92
(b) The Maryland-National Capital Park and Planning Commission (M-NCPPC)
M-NCPPC is a bi-county agency servicing Montgomery and Prince George's Counties’ regional system of parks. It also conducts the recreation program for Prince George's County. The Commission consists of ten members - five from each County. The County can modify its share of the budget and also approves applicable fees and sets the recreational tax rate. The County must also approve any debt issuances and is obligated to honor any bonded debt deficiencies (which to date have not occurred). At June 30, 2016 the Primary Government was contingently liable as guarantor on bonds issued by M-NCPPC in the amount of $69,083,127.
(c) Washington Metropolitan Area Transit Authority (WMATA)
On January 9, 1970 the County entered into an agreement with other local jurisdictions for construction of the Washington Metropolitan Area Rapid Transit System. Since then, the County has entered into several additional agreements providing for financing of both construction and operations. The County's obligation for funding the construction of the rail transit facilities is borne by the State of Maryland. WMATA is governed by a board of six directors and six alternates, who are appointed on a pro rata basis by the Northern Virginia Transportation Commission, the City Council of the Government of the District of Columbia, and the WSTC (mentioned above). In 2016, the State contributed $4.9 million toward the payment of principal and interest on WMATA revenue bonds. This was provided pursuant to amended Chapter 530, Acts of Maryland General Assembly 1980, which provides for State payment of 100% of the debt service bond repayment costs.
(d) Washington Suburban Sanitary Commission (WSSC)
The WSSC is a bi-county political subdivision of the State of Maryland created to provide water supply and sewage disposal facilities for Montgomery and Prince George's Counties. WSSC's governing body is composed of six members, three from each county; the budgeting authority and financing responsibility is shared equally by the participating counties.
(e) Availability of Financial Statements
Complete separate financial statements may be obtained at the administrative offices of the individual joint ventures as follows:
Washington Suburban Transit Commission 8720 Georgia Avenue, Suite 904 Silver Spring, Maryland 20910
The Maryland-National Capital Park and Planning Commission 6611 Kenilworth Avenue Riverdale, Maryland 20737
Washington Metropolitan Area Transit Authority 600 Fifth Street, N.W. Washington, D.C. 20001
Washington Suburban Sanitary Commission 14501 Sweitzer Lane Laurel, Maryland 29797
(21) Jointly Governed Organization
The Metropolitan Washington Council of Governments (COG) provides resources to participating local governments within the Washington, D.C. metropolitan area for a regional approach to local urban problems, emphasizing regional planning, community and economic development and conservation. Under COG’s bylaws, contributions of participating local governments are calculated on a per capita basis. The twenty-four board members are elected by the local jurisdiction which they represent; two members are appointed by the Primary Government. The Primary Government's fiscal year 2016 contributions to COG amounted to approximately $555,850.
REQUIRED SUPPLEMENTARY INFORMATION
Actuarial Valuation
Actuarial Value of Assets
Actuarial Accrued Liability (AAL)
Unfunded AAL (UAAL)
Funded Ratio
Covered Payroll
UAAL as a Percentage of
Covered Payroll
Date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
OPEB Plan Net Assets
07/01/14 48,140 1,651,196$ 1,603,056$ 2.92% 524,603$ 305.58%
07/01/13 49,856 1,690,289 1,640,433 2.95% 504,339 325.26%
07/01/12 47,938 1,584,584 1,536,646 3.03% 494,980 310.45%
07/01/11 44,457 875,301 830,844 5.08% 477,915 173.85%
07/01/10 42,444 825,330 782,886 5.14% 419,062 186.82%
07/01/09 35,295 842,813 807,518 4.19% 460,100 175.51%
Prince George’s County, Maryland
Schedule of Funding Progress - Other Post Employment Benefits
For the fiscal year ended June 30, 2016
Analysis of the dollar amounts of actuarial value of assets, actuarial accrued liability, and unfunded actuarial accrued liability in isolation can be misleading. Expressing the actuarial value of assets as a percentage of the actuarial accrued liability provides one indication of funding status on a going-concern basis. Analysis of the plan over time indicates whether the plans are becoming financially stronger or weaker. Generally, the greater this percentage, the stronger the plan. Trends in unfunded actuarial accrued liability and annual covered payroll are both affected by inflation. Expressing the unfunded actuarial accrued liability as a percentage of annual covered payroll approximately adjusts for the effects of inflation and aids analysis of the Plans' progress made in accumulating sufficient assets to pay benefits when due. Generally, the smaller the percentage, the stronger the plan. The OPEB Plan had actuarial valuations as of July 1, 2008, July 1, 2010, July 1, 2012 and July 1, 2014. The significant actuarial assumptions used to compute the accrued actuarial liability are the same as those used to compute the actuarially determined contribution requirements.
93
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 32,875,100$ 32,427,700 38,339,800
Interest 108,826,271 104,196,812 97,116,878
Difference between expected and actual experience (10,608,284) 7,177,558 -
Assumption changes - - 40,734,204
Benefit payments (82,938,604) (79,160,257) (76,560,744)
Refunds (1,753,711) (823,760) (1,272,420)
Net change in total pension liability 46,400,772 63,818,053 98,357,718
Total pension liability - beginning 1,476,457,171 1,412,639,118 1,314,281,400
Total pension liability - ending (a) 1,522,857,943$ 1,476,457,171 1,412,639,118
Plan fiduciary net position
Employer contributions 58,726,423 65,705,413 66,113,037
Employee contributions 8,415,273 8,710,935 8,190,741
Net investment income (19,270,258) 31,033,375 120,575,139
Benefit payments (82,938,604) (79,160,257) (76,560,744)
Refunds (1,753,711) (823,760) (1,272,420)
Administrative expense (628,194) (585,034) (517,840)
Net transfers - - -
Net change in plan fiduciary net position (37,449,071) 24,880,672 116,527,913
Plan fiduciary net position - beginning 881,462,529 856,581,857 740,053,944
Plan fiduciary net position - end (b) 844,013,458$ 881,462,529 856,581,857
Net pension liability - (a) - (b) 678,844,485$ 594,994,642 556,057,261
Plan fiduciary net position as a percentage of total pension liability 55.42% 59.70% 60.64%
Covered employee payroll (2) 127,185,700$ 123,481,300 121,886,100
Net pension liability as a percentage of covered employee payroll 533.74% 481.85% 456.21%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Schedule of Changes in Net Pension Liability and Related Ratios Fiscal Year 2014 through 2016(1)
Prince Georges County Maryland
Police Pension Plan
Required Supplementary Information
94
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 18,580,700$ 18,272,700 17,384,400
Interest 56,434,441 53,654,660 49,506,707
Benefit changes - - -
Difference between expected and actual experience 10,729,376 10,759,866 -
Assumption changes - - 31,788,934
Benefit payments (46,067,060) (43,816,726) (41,916,128)
Refunds (482,418) (1,210,716) (719,912)
Net change in total pension liability 39,195,039 37,659,784 56,044,001
Total pension liability - beginning 766,190,785 728,531,001 672,487,000
Total pension liability - ending (a) 805,385,824$ 766,190,785 728,531,001
Plan fiduciary net position
Employer contributions 38,078,291 37,391,396 34,826,767
Employee contributions 4,303,868 4,159,906 3,835,790
Net investment income (7,803,168) 12,392,319 56,155,443
Benefit payments (46,067,060) (43,816,726) (41,916,128)
Refunds (482,418) (1,210,716) (719,912)
Administrative expense (479,212) (456,462) (413,936)
Net transfers - - -
Net change in plan fiduciary net position (12,449,699) 8,459,717 51,768,024
Plan fiduciary net position - beginning 397,771,451 389,311,734 337,543,710
Plan fiduciary net position - end (b) 385,321,752$ 397,771,451 389,311,734
Net pension liability - (a) - (b) 420,064,072$ 368,419,334 339,219,267
Plan fiduciary net position as a percentage of total pension liability 47.84% 51.92% 53.44%
Covered employee payroll (2) 60,992,900$ 59,216,400 58,003,300
Net pension liability as a percentage of covered employee payroll 688.71% 622.16% 584.83%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Fire Service Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
95
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 4,359,000$ 4,085,500 3,871,100
Interest 8,922,118 8,333,756 7,628,903
Benefit changes - -
Difference between expected and actual experience (372,277) 2,253,312 -
Assumption changes - - 4,557,828
Benefit payments (6,954,174) (6,730,533) (6,582,813)
Refunds (90,039) (152,216) (68,733)
Net change in total pension liability 5,864,628 7,789,819 9,406,285
Total pension liability - beginning 120,279,904 112,490,085 103,083,800
Total pension liability - ending (a) 126,144,532$ 120,279,904 112,490,085
Plan fiduciary net position
Employer contributions 6,780,148 6,613,913 5,853,975
Employee contributions 1,580,443 1,562,200 1,405,110
Net investment income (432,595) 1,894,023 8,305,560
Benefit payments (6,954,174) (6,730,533) (6,582,813)
Refunds (90,039) (152,216) (68,733)
Administrative expense (280,425) (220,964) (211,737)
Net transfers - - -
Net change in plan fiduciary net position 603,358 2,966,423 8,701,362
Plan fiduciary net position - beginning 60,318,403 57,351,980 48,650,618
Plan fiduciary net position - end (b) 60,921,761$ 60,318,403 57,351,980
Net pension liability - (a) - (b) 65,222,771$ 59,961,501 55,138,105
Plan fiduciary net position as a percentage of total pension liability 48.30% 50.15% 50.98%
Covered employee payroll (2) 15,679,200$ 15,222,500 14,251,600 Net pension liability as a percentage of covered employee payroll 415.98% 393.90% 386.89%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Deputy Sheriff's Comprehensive Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
96
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 7,200,400$ 6,809,700 6,838,600
Interest 15,560,139 14,532,414 12,993,205
Benefit changes - -
Difference between expected and actual experience 4,780,950 1,847,358 -
Assumption changes - - 9,933,562
Benefit payments (9,305,786) (8,724,601) (8,354,218)
Refunds (697,058) (640,680) (742,136)
Net change in total pension liability 17,538,645 13,824,191 20,669,013
Total pension liability - beginning 208,844,404 195,020,213 174,351,200
Total pension liability - ending (a) 226,383,049$ 208,844,404 195,020,213
Plan fiduciary net position
Employer contributions 9,525,885 9,198,374 7,363,022
Employee contributions 3,416,276 3,282,970 3,054,222
Net investment income (795,879) 3,510,171 15,128,737
Benefit payments (9,305,786) (8,724,601) (8,354,218)
Refunds (697,058) (640,680) (742,136)
Administrative expense (219,077) (175,666) (240,480)
Net transfers - - -
Net change in plan fiduciary net position 1,924,361 6,450,568 16,209,147
Plan fiduciary net position - beginning 111,214,843 104,764,275 88,555,128
Plan fiduciary net position - end (b) 113,139,204$ 111,214,843 104,764,275
Net pension liability - (a) - (b) 113,243,845$ 97,629,561 90,255,938
Plan fiduciary net position as a percentage of total pension liability 49.98% 53.25% 53.72%
Covered employee payroll (2) 27,898,000$ 27,085,400 25,445,200 Net pension liability as a percentage of covered employee payroll 405.92% 360.45% 354.71%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Correctional Officers' Comprehensive Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
97
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 40,300$ 39,600 45,400
Interest 694,511 695,358 658,384
Benefit changes - -
Difference between expected and actual experience (152,939) 87,731 -
Assumption changes - - 615,240
Benefit payments (790,199) (819,027) (805,234)
Refunds (36,363) (22,784) -
Net change in total pension liability (244,690) (19,122) 513,790
Total pension liability - beginning 9,646,168 9,665,290 9,151,500
Total pension liability - ending (a) 9,401,478$ 9,646,168 9,665,290
Plan fiduciary net position
Employer contributions 846,400 815,900 768,500
Employee contributions 26,337 30,157 29,030
Net investment income (17,544) 131,609 521,224
Benefit payments (790,199) (819,027) (805,234)
Refunds (36,363) (22,784) -
Administrative expense (31,822) (31,774) (27,614)
Net transfers - - -
Net change in plan fiduciary net position (3,191) 104,081 485,906
Plan fiduciary net position - beginning 3,867,575 3,763,494 3,277,588
Plan fiduciary net position - end (b) 3,864,384$ 3,867,575 3,763,494
Net pension liability - (a) - (b) 5,537,094$ 5,778,593 5,901,796 Plan fiduciary net position as a percentage of total pension liability 41.10% 40.09% 38.94%
Covered employee payroll (2) 600,800$ 583,300 574,600 Net pension liability as a percentage of covered employee payroll 921.62% 990.67% 1027.11%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Deputy Sheriff's Supplemental Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
98
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 136,800$ 128,100 140,000
Interest 682,481 651,696 581,835
Benefit changes - -
Difference between expected and actual experience 573,596 17,577 -
Assumption changes - - 557,170
Benefit payments (398,513) (369,988) (309,055)
Refunds (8,936) (5,512) -
Net change in total pension liability 985,428 421,873 969,950
Total pension liability - beginning 9,232,623 8,810,750 7,840,800
Total pension liability - ending (a) 10,218,051$ 9,232,623 8,810,750
Plan fiduciary net position
Employer contributions 620,834 675,703 559,655
Employee contributions 83,472 90,308 84,396
Net investment income (32,724) 281,057 1,045,836
Benefit payments (398,512) (369,988) (309,055)
Refunds (8,936) (5,512) -
Administrative expense (31,822) (31,774) (27,614)
Net transfers - - -
Net change in plan fiduciary net position 232,312 639,794 1,353,218
Plan fiduciary net position - beginning 8,072,146 7,432,352 6,079,134
Plan fiduciary net position - end (b) 8,304,458$ 8,072,146 7,432,352
Net pension liability - (a) - (b) 1,913,593$ 1,160,477 1,378,398 Plan fiduciary net position as a percentage of total pension liability 81.27% 87.43% 84.36%
Covered employee payroll (2) 1,669,100$ 1,620,500 1,519,300 Net pension liability as a percentage of covered employee payroll 114.65% 71.61% 90.73%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Correctional Officers' Supplemmental Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
99
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 60,700$ 60,100 66,300
Interest 151,447 149,464 140,397
Benefit changes - -
Difference between expected and actual experience (37,977) (15,625) -
Assumption changes - 81,491
Benefit payments (145,303) (150,128) (144,342)
Refunds (15,063) (24,818) (9,611)
Net change in total pension liability 13,804 18,993 134,235
Total pension liability - beginning 2,068,228 2,049,235 1,915,000
Total pension liability - ending (a) 2,082,032$ 2,068,228 2,049,235
Plan fiduciary net position
Employer contributions 85,297 87,270 81,888
Employee contributions 66,985 68,869 64,330
Net investment income (11,504) 89,869 222,555
Benefit payments (145,303) (150,128) (144,342)
Refunds (15,063) (24,818) (9,611)
Administrative expense (29,501) (28,122) (21,310)
Net transfers - - (220)
Net change in plan fiduciary net position (49,089) 42,940 193,290
Plan fiduciary net position - beginning 1,541,434 1,498,494 1,305,204
Plan fiduciary net position - end (b) 1,492,345$ 1,541,434 1,498,494
Net pension liability - (a) - (b) 589,687$ 526,794 550,741
Plan fiduciary net position as a percentage of total pension liability 71.68% 74.53% 73.12%
Covered employee payroll (2) 1,460,700$ 1,418,200 1,402,400 Net pension liability as a percentage of covered employee payroll 40.37% 37.15% 39.27%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
Crossing Guards Pension Plan
Required Supplementary Information
100
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 2,405,400$ 2,404,200 2,949,000
Interest 7,166,483 6,865,340 6,434,666
Benefit changes - -
Difference between expected and actual experience (1,961,698) (864,476) -
Assumption changes - - 755,549
Benefit payments (4,339,973) (4,075,963) (3,860,360)
Refunds (131,065) (236,734) (92,288)
Net change in total pension liability 3,139,147 4,092,367 6,186,567
Total pension liability - beginning 96,567,234 92,474,867 86,288,300
Total pension liability - ending (a) 99,706,381$ 96,567,234 92,474,867
Plan fiduciary net position
Employer contributions 3,248,913 4,203,607 3,924,252
Employee contributions 715,902 924,937 862,630
Net investment income (583,438) 2,579,265 11,124,936
Benefit payments (4,339,971) (4,075,963) (3,860,360)
Refunds (131,065) (236,734) (92,288)
Administrative expense (99,769) (96,546) (116,210)
Net transfers - (51,363) (125,063)
Net change in plan fiduciary net position (1,189,428) 3,247,203 11,717,897
Plan fiduciary net position - beginning 80,054,725 76,807,522 65,089,625
Plan fiduciary net position - end (b) 78,865,297$ 80,054,725 76,807,522
Net pension liability - (a) - (b) 20,841,084$ 16,512,509 15,667,345
Plan fiduciary net position as a percentage of total pension liability 79.10% 82.90% 83.06%
Covered employee payroll (2) 52,869,200$ 51,329,300 51,111,200
Net pension liability as a percentage of covered employee payroll 39.42% 32.17% 30.65%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
AFSCME Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
101
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 4,712,000$ 4,665,500 5,213,600
Interest 13,234,761 12,468,033 11,683,071
Benefit changes - -
Difference between expected and actual experience (650,926) 3,639,626 -
Assumption changes - - 3,805,637
Benefit payments (10,377,212) (9,850,377) (9,661,847)
Refunds (641,289) (292,878) (135,253)
Net change in total pension liability 6,277,334 10,629,904 10,905,208
Total pension liability - beginning 179,559,712 168,929,808 158,024,600
Total pension liability - ending (a) 185,837,046$ 179,559,712 168,929,808
Plan fiduciary net position
Employer contributions 6,607,768 7,757,860 7,189,526
Employee contributions 2,983,908 3,531,597 3,338,347
Net investment income (913,560) 4,006,797 17,349,257
Benefit payments (10,377,212) (9,850,377) (9,661,847)
Refunds (641,289) (292,878) (135,253)
Administrative expense (117,761) (115,975) (153,155)
Net transfers - 21,670 152,316
Net change in plan fiduciary net position (2,458,146) 5,058,694 18,079,191
Plan fiduciary net position - beginning 125,204,409 120,145,715 102,066,524
Plan fiduciary net position - end (b) 122,746,263$ 125,204,409 120,145,715
Net pension liability - (a) - (b) 63,090,783$ 54,355,303 48,784,093
Plan fiduciary net position as a percentage of total pension liability 66.05% 69.73% 71.12%
Covered employee payroll (2) 95,570,500$ 92,786,900 90,154,600
Net pension liability as a percentage of covered employee payroll 66.01% 58.58% 54.11%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
General Schedule Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
102
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 187,400$ 180,400 218,900
Interest 854,877 836,587 789,219
Benefit changes - -
Difference between expected and actual experience 186,157 (154,697) -
Assumption changes - - 256,389
Benefit payments (599,487) (572,118) (603,003)
Refunds (18,593) (53,345) -
Net change in total pension liability 610,354 236,827 661,505
Total pension liability - beginning 11,609,832 11,373,005 10,711,500
Total pension liability - ending (a) 12,220,186$ 11,609,832 11,373,005
Plan fiduciary net position
Employer contributions 474,312 511,188 455,754
Employee contributions 181,788 198,816 177,317
Net investment income (52,155) 232,048 1,014,503
Benefit payments (599,487) (572,118) (603,003)
Refunds (18,593) (53,345) -
Administrative expense (67,687) (65,939) (57,930)
Net transfers - - (4,197)
Net change in plan fiduciary net position (81,822) 250,650 982,444
Plan fiduciary net position - beginning 7,243,114 6,992,464 6,010,020
Plan fiduciary net position - end (b) 7,161,292$ 7,243,114 6,992,464
Net pension liability - (a) - (b) 5,058,894$ 4,366,718 4,380,541
Plan fiduciary net position as a percentage of total pension liability 58.60% 62.39% 61.48%
Covered employee payroll (2) 3,987,900$ 3,871,700 3,638,800
Net pension liability as a percentage of covered employee payroll 126.86% 112.79% 120.38%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Fire Civilian Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
103
Fiscal year ending June 30 2016 2015 2014
Total Pension Liability
Service cost 799,900$ 795,600 1,023,800
Interest 2,034,463 1,938,410 1,908,551
Benefit changes - -
Difference between expected and actual experience 51,023 212,896 -
Assumption changes - - (785,355)
Benefit payments (1,474,674) (1,397,887) (1,395,958)
Refunds (247,230) (218,740) (260,381)
Net change in total pension liability 1,163,482 1,330,279 490,657
Total pension liability - beginning 27,578,836 26,248,557 25,757,900
Total pension liability - ending (a) 28,742,318$ 27,578,836 26,248,557
Plan fiduciary net position
Employer contributions 845,730 1,089,407 1,068,827
Employee contributions 654,575 838,457 802,285
Net investment income (148,154) 649,268 2,833,208
Benefit payments (1,474,674) (1,397,887) (1,395,958)
Refunds (247,230) (218,740) (260,381)
Administrative expense (69,349) (67,533) (64,464)
Net transfers - 29,693 (22,836)
Net change in plan fiduciary net position (439,102) 922,665 2,960,681
Plan fiduciary net position - beginning 20,423,355 19,500,690 16,540,009
Plan fiduciary net position - end (b) 19,984,253$ 20,423,355 19,500,690
Net pension liability - (a) - (b) 8,758,065$ 7,155,481 6,747,867
Plan fiduciary net position as a percentage of total pension liability 69.53% 74.05% 74.29%
Covered employee payroll (2) 18,662,200$ 18,118,600 17,183,600
Net pension liability as a percentage of covered employee payroll 46.93% 39.49% 39.27%
(1) GASB67 implemented in Fiscal Year 2014. Ultimately 10 years will be displayed. (2) Payroll from actuarial valuation performed at fiscal year end.
Prince Georges County Maryland
Police Civilian Pension Plan
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Fiscal Year 2014 through 2016(1)
104
Measurement Date 2015 2014
County's proportionate share of net pension liability 0.7289217% 0.6960475%
County's proportionate share of net pension liability 151,482,409$ 123,525,669
County's covered payroll 195,770,350$ 196,774,400
County's proportionate share of the net pension liability as a percentage of its covered employee payroll 77.38% 62.78%
Plan fiduciary net position as a percentage of the total pension liability 68.78% 71.87%
(1) GASB68 implemented in Fiscal Year 2015. Ultimately 10 years will be displayed.
Prince Georges County Maryland
Maryland State Retirement and Pension System
Required Supplementary Information
Schedule of Proportionate Share of Net Pension Liability
Fiscal Year 2015 and 2014(1)
105
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Police
Actuarially determined contribution 58,726,423$ 65,705,413$ 66,113,037$ 56,265,491$ 52,792,772$ 47,358,991$ 40,746,884$ 41,312,456$ 40,899,662$ 37,460,992$
Contributions in relation to the actuarially determined contribution 58,726,423 65,705,413 66,113,037 56,265,491 52,792,772 47,358,991 40,746,884 41,312,456 40,899,662 37,460,992
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 121,869,863$ 121,869,863$ 132,856,596$ 113,612,283$ 110,472,635$ 105,941,115$ 105,067,297$ 110,266,912$ 97,043,082$ 98,591,589$
Contributions as a percentage of covered-employee payroll 48.19% 53.91% 49.76% 49.52% 47.79% 44.70% 38.78% 37.47% 42.15% 38.00%
Fire Actuarially determined contribution 38,078,591$ 37,391,396$ 34,826,767$ 29,993,835$ 31,141,432$ 25,956,943$ 23,247,348$ 25,628,801$ 25,411,809$ 20,371,224$
Contributions in relation to the actuarially determined contribution 38,078,591 37,391,396 34,826,767 29,993,835 31,141,432 25,956,943 23,247,348 25,628,801 25,411,809 20,371,224
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 58,868,793$ 58,868,793$ 61,520,842$ 51,609,161$ 58,769,965$ 49,076,124$ 48,791,822$ 54,472,521$ 50,944,023$ 50,094,360$
Contributions as a percentage of covered-employee payroll 64.68% 63.52% 56.61% 58.12% 52.99% 52.89% 47.65% 47.05% 49.88% 40.67%
Deputy Sheriff's Comprehensive Actuarially determined contribution 6,780,148$ 6,613,913$ 5,853,975$ 5,171,709$ 5,243,696$ 4,627,135$ 3,898,491$ 4,110,295$ 4,138,909$ 4,172,392$
Contributions in relation to the actuarially determined contribution 6,780,148 6,613,913 5,853,975 5,171,709 5,243,696 4,627,135 3,898,491 4,110,295 4,138,909 4,172,392
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 14,760,637$ 14,760,637$ 14,819,114$ 13,408,926$ 13,689,694$ 13,180,174$ 13,060,220$ 13,868,817$ 12,455,970$ 11,766,144$
Contributions as a percentage of covered-employee payroll 45.93% 44.81% 39.50% 38.57% 38.30% 35.11% 29.85% 29.64% 33.23% 35.46%
Correctional Officers' Comprehensive Actuarially determined contribution 9,525,885$ 9,198,374$ 7,363,022$ 6,361,469$ 6,655,547$ 6,196,486$ 5,082,212$ 5,001,190$ 4,932,268$ 4,636,499$
Contributions in relation to the actuarially determined contribution 9,525,885 9,198,374 7,363,022 6,361,469 6,655,547 6,196,486 5,082,212 5,001,190 4,932,268 4,636,499
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 25,545,117$ 25,545,117$ 26,087,235$ 23,470,084$ 25,215,683$ 24,347,628$ 23,217,583$ 24,013,591$ 22,030,546$ 22,076,288$
Contributions as a percentage of covered-employee payroll 37.29% 36.01% 28.22% 27.10% 26.39% 25.45% 21.89% 20.83% 22.39% 21.00%
Prince Georges County Maryland Required Supplementary Information
Schedule of County Contributions Last 10 Fiscal Years
106
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Prince Georges County Maryland Required Supplementary Information
Schedule of County Contributions Last 10 Fiscal Years
Deputy Sheriff's Supplemental Actuarially determined contribution 846,400$ 815,900$ 768,500$ 652,200$ 274,717$ 257,053$ 255,608$ 214,001$ 224,419$ 204,941$
Contributions in relation to the actuarially determined contribution 846,400 815,900 768,500 652,200 274,717 257,053 255,608 214,001 224,419 204,941
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 579,946$ 579,946$ 558,262$ 717,237$ 1,021,708$ 1,105,715$ 1,307,494$ 1,259,659$ 1,292,922$ 1,367,827$
Contributions as a percentage of covered-employee payroll 145.94% 140.69% 137.66% 90.93% 26.89% 23.25% 19.55% 16.99% 17.36% 14.98%
Correctional Officers' Supplemental Actuarially determined contribution 620,834$ 675,703$ 559,655$ 528,851$ 568,320$ 546,421$ 142,397$ 149,743$ 167,390$ 154,982$
Contributions in relation to the actuarially determined contribution 620,834 675,703 559,655 528,851 568,320 546,421 142,397 149,743 167,390 154,982
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 1,567,767$ 1,567,767$ 1,613,254$ 1,547,850$ 1,689,161$ 1,726,284$ 1,825,432$ 1,940,038$ 2,075,209$ 2,045,106$
Contributions as a percentage of covered-employee payroll 39.60% 43.10% 34.69% 34.17% 33.65% 31.65% 7.80% 7.72% 8.07% 7.58%
Crossing Guards Actuarially determined contribution 85,297$ 87,270$ 81,888$ 86,674$ 85,002$ 79,090$ 74,880$ 85,965$ 78,794$ 74,160$
Contributions in relation to the actuarially determined contribution 85,297 87,270 81,888 86,674 85,002 79,090 74,880 85,965 78,794 74,160
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 1,568,767$ 1,568,767$ 1,478,859$ 1,576,052$ 1,560,515$ 1,480,461$ 1,635,018$ 1,666,680$ 1,596,052$ 1,580,337$
Contributions as a percentage of covered-employee payroll 5.44% 5.56% 5.54% 5.50% 5.45% 5.34% 4.58% 5.16% 4.94% 4.69%
AFSCME Actuarially determined contribution 3,248,913$ 4,203,607$ 3,924,252$ 3,876,642$ 4,063,116$ 3,907,035$ 3,761,772$ 4,100,704$ 3,978,481$ 1,704,492$
Contributions in relation to the actuarially determined contribution 3,248,913 4,203,607 3,924,252 3,876,642 4,063,116 3,907,035 3,761,772 4,100,704 3,978,481 1,704,492
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 51,962,760$ 51,962,760$ 54,596,819$ 54,115,932$ 56,189,039$ 54,702,748$ 57,385,298$ 59,410,466$ 55,667,983$ 38,750,947$
Contributions as a percentage of covered-employee payroll 6.25% 8.09% 7.19% 7.16% 7.23% 7.14% 6.56% 6.90% 7.15% 4.40%
107
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Prince Georges County Maryland Required Supplementary Information
Schedule of County Contributions Last 10 Fiscal Years
General Schedule Actuarially determined contribution 6,607,768$ 7,757,860$ 7,189,526$ 6,269,930$ 6,225,415$ 5,687,109$ 5,355,284$ 5,477,978$ 5,104,563$ 5,643,606$
Contributions in relation to the actuarially determined contribution 6,607,768 7,757,860 7,189,526 6,269,930 6,225,415 5,687,109 5,355,284 5,477,978 5,104,563 5,643,606
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 92,547,260$ 92,547,260$ 96,687,856$ 83,866,383$ 84,317,601$ 79,224,231$ 81,358,176$ 81,562,184$ 77,971,726$ 84,430,989$
Contributions as a percentage of covered-employee payroll 7.14% 8.38% 7.44% 7.48% 7.38% 7.18% 6.58% 6.72% 6.55% 6.68%
Fire Civilian Actuarially determined contribution 474,312$ 511,188$ 455,754$ 412,724$ 425,660$ 374,931$ 339,173$ 346,042$ 350,325$ 328,707$
Contributions in relation to the actuarially determined contribution 474,312 511,188 455,754 412,724 425,660 374,931 339,173 346,042 350,325 328,707
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 3,772,598$ 3,772,598$ 4,007,893$ 3,634,202$ 3,879,187$ 3,935,198$ 4,213,435$ 4,280,833$ 4,154,906$ 4,063,497$
Contributions as a percentage of covered-employee payroll 12.57% 13.55% 11.37% 11.36% 10.97% 9.53% 8.05% 8.08% 8.43% 8.09%
Police Civilian Actuarially determined contribution 845,730$ 1,089,407$ 1,068,827$ 998,499$ 1,050,281$ 968,151$ 882,194$ 956,128$ 892,370$ 889,899$
Contributions in relation to the actuarially determined contribution 845,730 1,089,407 1,068,827 998,499 1,050,281 968,151 882,194 956,128 892,370 889,899
Contribution deficiency (excess) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Covered-employee payroll 17,614,642$ 17,614,642$ 19,058,383$ 17,251,532$ 17,910,236$ 17,347,443$ 17,631,392$ 17,799,883$ 16,006,191$ 14,599,716$
Contributions as a percentage of covered-employee payroll 4.80% 6.18% 5.61% 5.79% 5.86% 5.58% 5.00% 5.37% 5.58% 6.10%
MSRPS Contractually required contribution 15,363,699$ 16,220,418$
Contributions in relation to the contractually determined contribution 15,363,699 16,220,418
Contribution deficiency (excess) -$ -$
Covered-employee payroll 195,770,350$ 196,774,400$
Contributions as a percentage of covered-employee payroll 7.85% 8.24%
Required Supplementary Information Schedule of County Contributions
Fiscal Year 2015 and 2014
Prince Georges County Maryland
108
INDIVIDUAL FUND STATEMENTS AND SCHEDULES
This sub-section contains the Combining and Individual Fund Statements for the General Fund, Nonmajor Governmental Funds, Internal Service Funds, Fiduciary Funds, and Nonmajor Component Units. Also included are Supplementary Schedules.
Exhibits B
The General Fund is used to account for resources traditionally associated with government which are not legally or by sound financial management required to be accounted for in another fund.
GENERAL FUND
Exhibit B-1
Assets Liabilities, Deferred Inflow of Resources, and Fund Balance Cash and investments 194,639,727$ Liabilities: Taxes receivable: Compensated absences and Property taxes 15,771,121 termination benefits payable 339,556$ Less allowance for uncollectible taxes (11,488,705) Accounts payable 10,440,474 Net property taxes 4,282,416 Accrued costs 22,829,375
Unearned revenue 15,418,089 Accounts receivable 37,082,122 Deposits 29,063,927 Less allowance for uncollectible accounts (673,269) Total liabilities 78,091,421 Net accounts receivable 36,408,853
Deferred Inflow of Resources: Notes receivable 15,418,089 Unavailble revenue - income taxes 59,074,723
Unavailable revenue - property taxes 4,377,598 Total deferred inflow of resources 63,452,321
Accrued interest receivable 172,859 Fund balance:
Due from other funds: Nonspendable 2,134,534 Special Revenue 19,500,000 Restricted Capital Projects 93,000,000 Economic stabilization 148,391,975 Solid Waste 5,500,000 Equipment purchases 11,921,168
Real estate purchases 737,971 Total due from other funds 118,000,000 Total Restricted 161,051,114
Due from component units: Committed - Operating Reserve 59,356,790 Housing Authority, net of allowance 5,296,161 Revenue Authority 799,938 Assigned Memorial Library 156,063 Board of Education 915,816 Community Television 450,000 Economic Development 36,914,560 Total due from component units 7,617,978 Local Impact Grant 62,418
Summer Youth Enrichment Program 1,729,492 Due from other governmental units: Property Sales and Acquisition 717,014 State 123,741,317 Other 9,502,950 Federal 2,203,764 Total Assigned 48,926,434 Other 12,099,209 Total due from other governmental units 138,044,290
Unassigned 116,418,173 Inventories, at average cost 2,134,534 Cash and investments-restricted 12,662,041 Total fund balance 387,887,045
Other assets 50,000 529,430,787$ 529,430,787$
PRINCE GEORGE'S COUNTY, MARYLAND Balance Sheet General Fund June 30, 2016
109
Exhibit B-2
Revenues: Taxes $ 1,630,956,629 Licenses and permits 37,407,084 Fines and forfeitures 14,400,073 Use of money and property 7,950,672 Charges for services 44,731,302 Intergovernmental 38,716,861 Miscellaneous 2,358,597
Total revenues 1,776,521,218
Expenditures: General government 192,650,810 Public safety 639,120,163 Enviromental 3,424,087 Health and Human Services 22,101,157 Infrastructure and Development 19,514,149 Payments to component units 719,426,125 Debt Service 25,718,240
Total expenditures 1,621,954,731
Excess of revenues over expenditures 154,566,487 Other financing sources (uses):
Purchase agreement financing 10,161,624 Transfers out - other funds (95,034,167)
Total other financing sources (uses) (84,872,543)
Excess of revenues and other financing sources under
expenditures and other uses 69,693,944
Fund balance, beginning of year 318,193,101 Fund balance, end of year $ 387,887,045
PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue, Expenditures, and Changes in Fund Balance
General Fund For the year ended June 30, 2016
110
Exhibit B-3
Variance Budget Positive
As Revised General Fund Economic Incentive Property Management Total (Negative)
General property taxes: Real property (net of credits) $ 699,572,400 704,315,323 - - 704,315,323 4,742,923 Unincorporated business personal property 4,322,700 1,372,959 - - 1,372,959 (2,949,741) Railroad and public utility 32,421,000 32,507,423 - - 32,507,423 86,423 Corporate personal property 34,023,500 42,628,797 - - 42,628,797 8,605,297
Total general property taxes 770,339,600 780,824,502 - - 780,824,502 10,484,902
Local taxes: Income 533,731,300 547,566,946 - - 547,566,946 13,835,646 State income disparity grant 23,088,266 23,088,290 - - 23,088,290 24 Recordation 36,950,100 44,455,892 - - 44,455,892 7,505,792 Interest and penalties on delinquent taxes 3,736,325 3,463,109 - - 3,463,109 (273,216) Transfer 86,087,400 107,785,252 - - 107,785,252 21,697,852 Trailer camp 35,000 41,145 - - 41,145 6,145 Hotel/motel 7,989,500 9,073,043 - - 9,073,043 1,083,543 Amusement 14,245,800 13,515,562 - - 13,515,562 (730,238) Telecommunications tax 34,660,400 31,227,520 - - 31,227,520 (3,432,880) Energy tax 63,394,400 66,394,765 - - 66,394,765 3,000,365
Total local taxes 803,918,491 846,611,524 - - 846,611,524 42,693,033
Shared taxes: Gas and motor vehicle 3,243,000 2,970,706 - - 2,970,706 (272,294) State transfer taxes 750,000 549,897 - - 549,897 (200,103)
3,993,000 3,520,603 - - 3,520,603 (472,397)
Total taxes 1,578,251,091 1,630,956,629 - - 1,630,956,629 52,705,538
(Continued)
PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Actual Revenues
111
Exhibit B-3, Cont.
Variance Budget Positive
As Revised General Fund Economic Incentive Property Management Total (Negative) Licenses and permits:
Street privileges and permits $ 6,329,600 3,924,114 - - 3,924,114 (2,405,486) Liquor license and permits 1,832,400 2,370,273 - - 2,370,273 537,873 Traders 787,500 834,021 - - 834,021 46,521 Hawkers and peddlers 3,000 77,206 - - 77,206 74,206 Taxicab 500,000 456,895 - - 456,895 (43,105) Dance licenses 5,000 - - - - (5,000) Bonder's license fees 662,300 604,282 - - 604,282 (58,018) Animal registration 120,000 89,005 - - 89,005 (30,995) Mechanics 12,000 16,649 - - 16,649 4,649 Electrical licenses 150,000 319,955 - - 319,955 169,955 Building permits 12,893,700 22,206,385 - - 22,206,385 9,312,685 Single family and apartment rental license fee 3,460,000 3,493,734 - - 3,493,734 33,734 New sign permits 56,100 81,507 - - 81,507 25,407 Towing facility 120,000 - - - - (120,000) Palmist 2,000 - - - - (2,000) Burglar alarm 306,000 398,776 - - 398,776 92,776 Benefit performance and casino permits - 3,148 - - 3,148 3,148 Board of registration - contractor's fee 7,300 10,012 - - 10,012 2,712 Health permits 2,100,000 2,447,554 - - 2,447,554 347,554 Secondhand dealers 40,000 22,995 - - 22,995 (17,005) Other 74,800 50,573 - - 50,573 (24,227)
Total licenses and permits 29,461,700 37,407,084 - - 37,407,084 7,945,384
Fines and forfeitures: Motor vehicles 849,600 586,296 - - 586,296 (263,304) Animal 47,800 49,175 - - 49,175 1,375 Automated Speed Enforcement 8,507,800 8,759,276 - - 8,759,276 251,476 Traffic Light 3,189,900 4,840,011 - - 4,840,011 1,650,111 Other 72,000 165,315 - - 165,315 93,315
Total fines and forfeitures 12,667,100 14,400,073 - - 14,400,073 1,732,973 (Continued)
General Fund For the year ended June 30, 2016
Actual Revenues
PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis), Continued
112
Exhibit B-3, Cont.
Variance Budget Positive
As Revised General Fund Economic Incentive Property Management Total (Negative) Use of money and property:
Interest and dividends $ 10,813,900 2,444,470 125,952 - 2,570,422 (8,243,478) Telephone commissions - 286,450 - - 286,450 286,450 Rental of County-owned property 1,000,000 3,350,336 - - 3,350,336 2,350,336 Xerox commissions 2,400 74,994 - - 74,994 72,594 Vending machines and cafeteria commissions - 48,678 - - 48,678 48,678 Other use of money and property 1,025,500 230,390 1,389,402 - 1,619,792 594,292
Total use of money and property 12,841,800 6,435,318 1,515,354 - 7,950,672 (4,891,128)
Charges for services: Sheriff's fees 2,762,000 3,709,700 - - 3,709,700 947,700 Zoning Appeals Board fee 31,100 32,089 - - 32,089 989 Tax certification fees 17,000 21,150 - - 21,150 4,150 Tax collection service 65,000 65,000 - - 65,000 - Health fees 1,200,000 1,291,957 - - 1,291,957 91,957 Appearance and witness fees 206,200 186,063 - - 186,063 (20,137) Emergency transport and related services 10,065,900 12,341,137 - - 12,341,137 2,275,237 Tax sale cost recoveries 70,200 60,241 - - 60,241 (9,959) Housing - State prisoners 630,000 746,640 - - 746,640 116,640 Housing - Federal prisoners 261,500 108,496 - - 108,496 (153,004) Contractual police services 440,000 896,261 - - 896,261 456,261 Fire inspectiion fee 400,000 325,892 - - 325,892 (74,108) Inmate commissions 264,900 196,790 - - 196,790 (68,110) County sales 400 - - - - (400) Animal control fees 71,500 175,750 - - 175,750 104,250 Circuit Court marriage ceremonies 31,600 26,270 - - 26,270 (5,330) Public safety surcharge - 1,600,000 - - 1,600,000 1,600,000 Local 911 fee 6,520,500 6,613,303 - - 6,613,303 92,803 Cable franchise fees 12,256,000 12,941,876 - - 12,941,876 685,876 Stadium contract revenue 1,500,000 1,699,439 - - 1,699,439 199,439 Jury fees reimbursements 769,900 760,300 - - 760,300 (9,600) Sex offenders registration fee 178,500 149,600 - - 149,600 (28,900) Interpreter fee 540,900 239,945 - - 239,945 (300,955) Other 707,800 543,403 - - 543,403 (164,397)
Total charges for services 38,990,900 44,731,302 - - 44,731,302 5,740,402 (Continued)
PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis), Continued
General Fund For the year ended June 30, 2016
Actual Revenues
113
Exhibit B-3, Cont.
Variance Budget Positive
As Revised General Fund Economic Incentive Property Management Total (Negative)
Intergovernmental revenues: Civil defense $ - - - - - - Police protection 10,736,400 10,630,760 - - 10,630,760 (105,640) Land management 10,000 10,282 - - 10,282 282 Health Department - State share 6,131,000 2,658,266 - - 2,658,266 (3,472,734) Racing grant 948,000 1,000,000 - - 1,000,000 52,000 Fish and wildlife service 140,000 159,088 - - 159,088 19,088 Teacher Retirement grant 9,628,700 9,628,702 - - 9,628,702 2 FEMA Reimbursement - 2,207,660 - - 2,207,660 2,207,660 State grants 564,529 28,515 - - 28,515 (536,014) Federal grants 1,696,586 230,777 - - 230,777 (1,465,809) Prince George's County Public Schools reimbursment - 500,000 - - 500,000 500,000 DSS salary reimbursement 250,000 210,078 - - 210,078 (39,922) M-NCPPC reimbursemnent 9,704,900 8,067,575 - - 8,067,575 (1,637,325) Other 1,133,285 3,385,158 - - 3,385,158 2,251,873
Total intergovernmental revenues 40,943,400 38,716,861 - - 38,716,861 (2,226,539)
Miscellaneous revenues: Cedarville state forest - 10,223 - - 10,223 10,223 Sale of surplus property 315,300 172,961 - - 172,961 (142,339) Sale of voter lists 11,000 6,833 - - 6,833 (4,167) Sale of accident reports and photos 165,000 160,219 - - 160,219 (4,781) Other miscellaneous sales 65,000 94,322 - 155,690 250,012 185,012 Miscellaneous revenue 1,000,000 1,758,349 - - 1,758,349 758,349
Total miscellaneous revenues 1,556,300 2,202,907 - 155,690 2,358,597 802,297
$ 1,714,712,291 1,774,850,174 1,515,354 155,690 1,776,521,218 61,808,927
Schedule of Revenue-Budget and Actual (Non-GAAP Budgetary Basis), Continued General Fund
Actual Revenues
For the year ended June 30, 2016
PRINCE GEORGE'S COUNTY, MARYLAND
114
Exhibit B-4 PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
General government:
County Executive: Compensation $ 4,127,450 4,042,499 84,951 Fringe benefits 990,730 957,761 32,969 Other current expenses 361,914 316,479 45,435
Total County Executive 5,480,094 5,316,739 163,355
Legislative Branch: Compensation 9,443,800 9,224,002 219,798 Fringe benefits 2,946,400 2,649,680 296,720 Other current expenses 2,508,500 2,112,627 395,873 Capital Outlay 29,400 - 29,400 Project charges (1,139,500) (1,184,803) 45,303
Total Legislative Branch 13,788,600 12,801,506 987,094
Office of Ethics and Accountability: Compensation 406,518 408,012 (1,494) Fringe benefits 107,522 95,224 12,298 Other current expenses 34,986 28,977 6,009
Total Ethics and Accountability 549,026 532,213 16,813
Circuit Court: Compensation 9,284,148 9,297,378 (13,230) Fringe benefits 2,946,744 2,881,236 65,508 Other current expenses 3,577,588 3,500,506 77,082 Project charges (129,360) - (129,360)
Total Circuit Court 15,679,120 15,679,120 -
(Continued)
115
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
General government, continued:
Orphan's Court: Compensation $ 310,666 312,654 (1,988) Fringe benefits 85,534 85,507 27 Other current expenses 15,778 11,363 4,415
Total Orphan's Court 411,978 409,524 2,454
Personnel Board: Compensation 188,748 193,944 (5,196) Fringe benefits 51,156 47,227 3,929 Other current expenses 79,870 70,109 9,761
Total Personnel Board 319,774 311,280 8,494
Office of Finance: Compensation 4,353,258 4,424,478 (71,220) Fringe benefits 1,548,890 1,402,639 146,251 Other current expenses 782,824 846,358 (63,534) Project charges (3,047,898) (3,117,871) 69,973
Total Office of Finance 3,637,074 3,555,604 81,470
Citizen Complaint Oversight Panel: Compensation 124,794 125,913 (1,119) Fringe benefits 41,748 41,805 (57) Other current expenses 81,042 64,211 16,831
Total Citizen Complaint Oversight Panel 247,584 231,929 15,655
(Continued)
116
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
General government, continued: Office of Community Relations
Compensation $ 2,855,082 2,762,388 92,694 Fringe benefits 915,118 860,661 54,457 Other current expenses 224,798 215,366 9,432
Total Office of Community Relations 3,994,998 3,838,415 156,583
Office of Management and Budget: Compensation 1,900,250 1,835,129 65,121 Fringe benefits 571,006 543,240 27,766 Other current expenses 136,024 119,605 16,419 Project charges (341,334) (232,234) (109,100)
Total Office of Management and Budget 2,265,946 2,265,740 206
Board of License Commissioners: Compensation 808,038 807,719 319 Fringe benefits 301,116 308,766 (7,650) Other current expenses 119,524 89,725 29,799
Total Board of License Commissioners 1,228,678 1,206,210 22,468
Office of Law: Compensation 4,554,454 4,487,722 66,732 Fringe benefits 1,309,698 1,252,061 57,637 Other current expenses 407,288 412,661 (5,373) Project charges (2,740,570) (2,701,609) (38,961)
Total Office of Law 3,530,870 3,450,835 80,035
(Continued)
117
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
General government, continued: Office of Human Resources Management
Compensation $ 4,993,226 4,900,476 92,750 Fringe benefits 1,362,230 1,360,105 2,125 Other current expenses 1,064,656 908,495 156,161 Project charges (1,966,860) (2,061,356) 94,496
Total Office of Human Resources Management 5,453,252 5,107,720 345,532
Board of Elections: Compensation 4,147,174 3,663,001 484,173 Fringe benefits 457,062 455,669 1,393 Other current expenses 776,250 699,594 76,656
Total Board of Elections 5,380,486 4,818,264 562,222
Office of Central Services: Compensation 8,166,372 8,161,797 4,575 Fringe benefits 3,187,388 3,065,446 121,942 Other current expenses 9,312,086 8,574,488 737,598 Project charges (1,551,634) (1,467,610) (84,024)
Total Office of Central Services 19,114,212 18,334,121 780,091
Property Management Other current expenses 501,200 310,689 190,511
Total Property Management 501,200 310,689 190,511
Collington Center Other current expenses 5,000 5,000 -
Total Collington Center 5,000 5,000 -
(Continued)
118
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
General government, continued: Non-departmental:
Grants to community organizations $ 5,698,400 4,788,647 909,753 Grants to governmental groups 225,000 164,325 60,675 Grants and contributions to component units 2,292,600 2,292,600 - Memberships 631,700 631,530 170 Economic Development 4,090,400 3,983,385 107,015 Economic Development Incentive 9,000,000 7,197,418 1,802,582 Conference and Visitors Bureau 728,900 728,900 - Discretionary Grants 762,700 1,641,800 (879,100) General Fund insurance payments 8,314,700 8,756,600 (441,900) Judgments - associated legal and professional expenses 686,900 408,325 278,575 Professional Service 9,190,000 11,258,323 (2,068,323) Postage 1,450,000 929,859 520,141 Utilities and leases 57,530,500 50,997,963 6,532,537 Vehicle Purchase 3,000,000 445,383 2,554,617 Debt payments 2,747,000 3,163,712 (416,712) Debt issuance costs 8,000 11,410 (3,410) Project charges (3,664,100) (3,589,495) (74,605)
Grant to Dimensions Health Corporation 15,000,000 15,000,000 - Interest 600,000 759,919 (159,919) Group Health (Retirees) 23,048,400 23,048,335 65 Group Life (Retirees) 1,000,000 1,118,626 (118,626) Unemployment Compensation 600,000 453,000 147,000 Deferred compensation contributions 100,000 77,411 22,589 Retired county personnel pension payments 50,000 44,602 5,398 Compensated Absences - (45,304) 45,304 Summer Youth Programs 2,337,200 1,908,279 428,921 Workers Compensation - 142,857 (142,857) Other miscellaneous 4,143,746 3,002,602 1,141,144
Total non-departmental 149,572,046 139,321,012 10,251,034
Total general government 231,159,938 217,495,921 13,664,017
(Continued)
119
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
Public safety: Office of the State's Attorney
Compensation $ 11,056,262 10,873,334 182,928 Fringe benefits 3,451,268 3,411,110 40,158 Other current expenses 1,360,926 1,390,028 (29,102) Project charges (124,460) (53,666) (70,794)
Total State's Attorney Office 15,743,996 15,620,806 123,190
Police Department: Compensation 162,211,957 165,599,015 (3,387,058) Fringe benefits 102,343,066 93,230,090 9,112,976 Other current expenses 29,502,214 25,768,778 3,733,436 Capital Outlay - 176,461 (176,461) Project charges (289,100) (277,297) (11,803)
Total Police Department 293,768,137 284,497,047 9,271,090
Fire Department: Fire Department Compensation 87,347,473 87,665,997 (318,524) Fringe benefits 62,130,182 62,215,065 (84,883) Other current expenses 20,970,572 19,566,405 1,404,167 Capital Outlay - 59,461 (59,461) Project charges (98,000) (248,484) 150,484
Total Fire Department 170,350,227 169,258,444 1,091,783
Sheriff's Department: Compensation 23,109,992 23,098,241 11,751 Fringe benefits 14,060,206 13,926,616 133,590 Other current expenses 5,195,630 3,952,533 1,243,097 Capital Outlay - 22,621 (22,621) Project charges - (32,107) 32,107
Total Sheriff's Department 42,365,828 40,967,904 1,397,924
(Continued)
120
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
Public safety, continued
Department of Corrections: Compensation $ 48,130,173 48,587,263 (457,090) Fringe benefits 22,177,106 22,083,104 94,002 Other current expenses 11,186,878 10,463,293 723,585 Project charges (146,118) (137,071) (9,047)
Total Department of Corrections 81,348,039 80,996,589 351,450
Office of Homeland Security Compensation 13,038,381 13,016,351 22,030 Fringe benefits 3,917,354 3,630,819 286,535 Other current expenses 8,017,058 8,327,475 (310,417)
Project charges - (1,852) 1,852
Total Office of Homeland Security 24,972,793 24,972,793 -
Total public safety 628,549,020 616,313,583 12,235,437
Environmental Soil Conservation:
Compensation 997,500 1,018,421 (20,921) Fringe benefits 304,200 297,102 7,098 Other current expenses 14,300 15,932 (1,632) Project charges (1,316,000) (1,331,455) 15,455
Total Soil Conservation - - -
Department of the Environment: Compensation 5,825,010 5,411,357 413,653 Fringe benefits 2,149,346 1,785,489 363,857 Other current expenses 1,211,476 1,127,121 84,355 Project charges (5,457,128) (4,899,880) (557,248)
Total Department of the Environment 3,728,704 3,424,087 304,617
Total Environmental 3,728,704 3,424,087 304,617
(Continued)
121
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
DRAFT AS OF 12/14/2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
Health and Human Services Department of Family Services:
Compensation $ 1,277,660 1,071,740 205,920 Fringe benefits 353,486 288,488 64,998 Other current expenses 1,417,862 1,292,381 125,481 Capital Outlay - 33,481 (33,481) Project charges (168,070) (7,309) (160,761)
Total Department of Family Services 2,880,938 2,678,781 202,157
Health Department: Compensation 11,977,560 11,484,398 493,162 Fringe benefits 4,050,250 3,979,953 70,297 Other current expenses 5,856,760 4,725,128 1,131,632 Project charges (2,548,000) (3,385,341) 837,341
Total Health 19,336,570 16,804,138 2,532,432
Department of Social Services:
Compensation 1,198,724 1,214,688 (15,964) Fringe benefits 333,690 322,129 11,561 Other current expenses 1,245,490 1,081,421 164,069
Total Department of Social Services 2,777,904 2,618,238 159,666
Total Health and Human Services 24,995,412 22,101,157 2,894,255
(Continued)
122
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing
Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis) General Fund
For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
Infrastructure and Development Department of Public Works
and Transportation Compensation $ 15,052,080 13,978,379 1,073,701 Fringe benefits 5,148,094 4,958,998 189,096 Other current expenses 42,395,114 41,525,687 869,427 Capital Outlay 100,000 - 100,000 Project charges (54,072,758) (52,084,392) (1,988,366)
Total public works 8,622,530 8,378,672 243,858
Department of Permitting, Inspections and Enforcement Compensation 16,377,628 16,526,214 (148,586) Fringe benefits 5,389,608 5,289,338 100,270 Other current expenses 3,285,248 3,014,175 271,073 Project charges (16,998,492) (17,349,722) 351,230
Total Permitting, Inspections and Enforcement 8,053,992 7,480,005 573,987
Department of Housing and Community Development:
Compensation 2,359,644 2,322,914 36,730 Fringe benefits 700,896 751,239 (50,343) Other current expenses 496,174 482,561 13,613
Total Department of Housing and Community Development 3,556,714 3,556,714 -
Total Infrastructure and Development 20,233,236 19,415,391 817,845
(Continued)
123
Exhibit B-4, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Expenditures and Other Financing Sources (Uses) Compared with Budget (Non-GAAP Budgetary Basis)
General Fund For the year ended June 30, 2016
Year ended June 30, 2016 Variance
Budget Positive as revised Expenditures (Negative)
Payments to Component Units: $ Board of Education 669,292,125 669,292,125 - Community College 31,648,800 31,648,800 - Memorial Library 18,485,200 18,485,200 -
Total payments to component units 719,426,125 719,426,125 -
Total expenditures $ 1,628,092,435 1,598,176,264 29,916,171
Other financing uses: Transfers out:
Special revenue funds $ (59,000) (59,000) - Capital projects fund (715,000) (690,000) 25,000 Debt service fund (94,334,056) (94,285,167) 48,889
Total transfers out (95,108,056) (95,034,167) 73,889
Total other financing sources (uses) $ (95,108,056) (95,034,167) 73,889
124
The Debt Service Fund accounts for the payment of general long-term debt of the County (not serviced by Enterprise Funds), including state participation loans and service charges.
Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.
NONMAJOR GOVERNMENTAL FUNDS
Exhibits C
Domestic Violence Fund - to account for the receipt of revenue from marriage license fees to finance the costs of shelters for homeless spouses who are the object of domestic violence.
Drug Enforcement and Education Fund - to account for the proceeds from the forfeiture or sale of property seized as a result of the enforcement of drug laws, which will finance costs associated with the County's drug enforcement and education activities.
Exhibit C-1 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Balance Sheet Nonmajor Governmental Funds
June 30, 2016
Drug Enforcement
Domestic and Debt Assets Violence Education Total Service Total
Cash and investments 125,826$ 12,759,669 12,885,495 396,295 13,281,790 Cash with fiscal agents - - - 17,506,263 17,506,263 Due from other governmental units 34,775 - 34,775 - 34,775 Restricted cash and investments - - - 14,996,851 14,996,851
160,601 12,759,669 12,920,270 32,899,409 45,819,679
Liabilities and Fund Balances
Liabilities: Accounts payable 96,405 743,741 840,146 396,295 1,236,441
Total liabilities 96,405 743,741 840,146 396,295 1,236,441
Fund balances: Restricted 64,196 8,337,977 8,402,173 32,503,114 40,905,287 Assigned - 3,677,951 3,677,951 - 3,677,951
Total fund balances 64,196 12,015,928 12,080,124 32,503,114 44,583,238
160,601$ 12,759,669 12,920,270 32,899,409 45,819,679
125
Exhibit C-2 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Revenue, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2016
Drug Enforcement
Sale of property Domestic and Debt Violence Education Total Service Total
Revenues: Taxes -$ - - 2,506,150 2,506,150 Licenses and permits 327,665 - 327,665 - 327,665 Fines and forfeitures - 839,469 839,469 - 839,469 Use of money and property: - -
Interest and dividends - 53,239 53,239 14,889 68,128 Charges for services - - - 29,405,570 29,405,570 Intergovernmental - - - 3,922,578 3,922,578 Sale of property - 382 382 - 382
Total revenues 327,665 893,090 1,220,755 35,849,187 37,069,942
Expenditures: General government - 709 709 1,235,142 1,235,851 Public safety - 1,200,178 1,200,178 - 1,200,178 Health and Human Services 391,847 - 391,847 - 391,847 Debt service: Principal retirement - - - 89,000,000 89,000,000 Interest - - - 52,655,787 52,655,787
Total expenditures 391,847 1,200,887 1,592,734 142,890,929 144,483,663
Excess of revenues over (under) expenditures(64,182) (307,797) (371,979) (107,041,742) (107,413,721) Other financing sources (uses):
Bond premium - - - 11,807,446 11,807,446 Transfers in - other funds 59,000 - 59,000 94,285,167 94,344,167 Bonds issued - refunding - - - 51,511,805 51,511,805
BND PREM REF Bond premium - refunding - - - 7,990,279 7,990,279 Payment to refunding escrow agent - - - (58,956,180) (58,956,180)
Total other financing sources (uses) 59,000 - 59,000 106,638,517 106,697,517
Net change in fund balances (5,182) (307,797) (312,979) (403,225) (716,204)
Fund balances, beginning of year 69,378 12,323,725 12,393,103 32,906,339 45,299,442
Fund balances, end of year 64,196$ 12,015,928 12,080,124 32,503,114 44,583,238
126
Domestic Violence Drug Enforcement and Education
Variance with Variance with Variance with Final Budget Final Budget Final Budget
Original Final Positive Original Final Positive Original Final Positive Budget Budget Actual (Negative) Budget Budget Actual (Negative) Budget Budget Actual (Negative)
Revenues: Licenses and permits $ 308,000 308,000 327,665 19,665 - - - - 308,000 308,000 327,665 - Interest and Dividends 50,000 50,000 53,239 3,239 50,000 50,000 53,239 3,239 Fines and forfeitures - - - - 1,450,000 1,450,000 839,469 (610,531) 1,450,000 1,450,000 839,469 (610,531) Sale of property - - - - 8,000 8,000 382 (7,618) 8,000 8,000 382 (7,618)
Total revenues 308,000 308,000 327,665 19,665 1,508,000 1,508,000 893,090 (614,910) 1,816,000 1,816,000 1,220,755 (595,245)
Expenditures: General government - - - - - - 709 (709) - - 709 (709) Public safety - - - - 4,500,900 4,500,900 1,200,178 3,300,722 4,500,900 4,500,900 1,200,178 3,300,722 Health and human services 440,000 440,000 391,847 48,153 - - - - 440,000 440,000 391,847 48,153
Total expenditures 440,000 440,000 391,847 48,153 4,500,900 4,500,900 1,200,887 3,300,013 4,940,900 4,940,900 1,592,734 3,348,166 Excess of revenues over (under) expenditures (132,000) (132,000) (64,182) 67,818 (2,992,900) (2,992,900) (307,797) 2,685,103 (3,124,900) (3,124,900) (371,979) 2,752,921
Other financing sources (uses): Transfers in - other funds 59,000 59,000 59,000 - - - - - 59,000 59,000 59,000 - Appropriated fund balance 73,000 73,000 - 73,000 2,992,900 2,992,900 - (2,992,900) 3,065,900 3,065,900 - (3,065,900)
Total other financing sources (uses) 132,000 132,000 59,000 73,000 2,992,900 2,992,900 - (2,992,900) 3,124,900 3,124,900 59,000 (3,065,900)
$ - - (5,182) 140,818 - - (307,797) (307,797) - - (312,979) (312,979)
Fund balances, beginning of year 69,378 12,323,725 12,393,103 64,196 12,015,928 12,080,124
Exhibit C-3
Totals
Fund balances, end of year (GAAP basis)
Net change in fund balances (budgetary basis)
PRINCE GEORGE'S COUNTY, MARYLAND Combining Schedule of Revenue, Expenditures and Changes in Fund Balances - Budget and Actual, Continued
Nonmajor Governmental Funds - Special Revenue For the year ended June 30, 2016
127
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128
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Primary Government and to other government units, on a cost-reimbursement basis.
Self-Insurance Funds - to provide insurance protection to the Primary Government and the participating Component Unit Entities - Board of Education, Library, and Community College. The Life and Health Benefits Fund provides coverage for the Primary Government and Library employees. The Unemployment Compensation Fund covers required payments to the State of Maryland Unemployment Compensation Fund.
Vehicle Maintenance Fund - to account for the activities which provide the maintenance and repair services for County-owned vehicles.
Computer Services Fund - to provide for computer and office automation services to County departments and agencies.
Exhibits D
INTERNAL SERVICE FUNDS
Exhibit D-1 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Net Position Internal Service Funds
June 30, 2016
Life and Vehicle Computer
Assets Unemployment Property Automobile Worker's General Health Maintenance Services Compensation Loss Liability Compensation Liability Benefits Fund Fund Total
Current assets: Cash and investments 185,361$ 579,143 2,574,752 25,737,132 16,725,589 37,315,720 9,870,527 12,924,896 105,913,120 Accounts receivable - - 66,896 393,902 - 153,778 185,620 1,900,440 2,700,636 Accrued interest receivable - 20 365 11,582 243 - - - 12,210 Due from component units - - - 247,861 - - - - 247,861 Due from other governmental units - - - - - - - 471,705 471,705 Inventories, at cost - - - - - - 700,578 16,908 717,486 Prepaid costs and deposits - - - - 6,962 81,840 - 137,815 226,617
Total current assets 185,361 579,163 2,642,013 26,390,477 16,732,794 37,551,338 10,756,725 15,451,764 110,289,635
Noncurrent assets: Capital assets:
Land - - - - - - 1,000,000 - 1,000,000 Buildings - - - - - - 2,640,889 - 2,640,889
Accumulated depreciation - - - - - - (2,640,889) - (2,640,889) Improvements other than buildings - - - - - - 328,014 - 328,014
Accumulated depreciation - - - - - - (328,014) - (328,014) Equipment - - - - - - 8,035,706 13,988 8,049,694
Accumulated depreciation - - - - - - (7,527,338) (12,234) (7,539,572)
Total noncurrent assets - - - - - - 1,508,368 1,754 1,510,122 Total assets 185,361 579,163 2,642,013 26,390,477 16,732,794 37,551,338 12,265,093 15,453,518 111,799,757
Deferred outflow of resources Pension deferrals - - - - - - 1,316,233 2,203,544 3,519,777
Total deferred outflow of resources -$ - - - - - 1,316,233 2,203,544 3,519,777
(Continued)
Self-Insurance Funds
129
Exhibit D-1, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Net Position Internal Service Funds
June 30, 2016
Life and Vehicle Computer
Unemployment Property Automobile Worker's General Health Maintenance Services Liabilities Compensation Loss Liability Compensation Liability Benefits Fund Fund Total
Current liabilities:
Current portion of compensated absences and termination benefits payable -$ - - - - - 506,823 748,075 1,254,898
Accounts payable 50,758 5,968 40,571 125,823 217,313 2,726,300 365,296 6,135,340 9,667,369 Accrued costs - - - - 35 - 184,529 310,145 494,709 Unearned revenue - - - 8,077,174 - 49,088 - - 8,126,262 Current portion of estimated liability on
pending claims 132,898 403,415 1,062,169 27,676,959 6,406,341 13,787,971 - - 49,469,753
Total current liabilities 183,656 409,383 1,102,740 35,879,956 6,623,689 16,563,359 1,056,648 7,193,560 69,012,991
Noncurrent liabilities: Compensated absences and termination
benefits payable, less current portion - - - - - - 91,902 129,662 221,564 Estimated liability on pending claims,
less current portion - 169,780 1,539,273 113,604,095 10,109,105 - - - 125,422,253 Net pension liability - - - - - - 5,289,270 8,777,080 14,066,350
Total long-term liabilities - 169,780 1,539,273 113,604,095 10,109,105 - 5,381,172 8,906,742 139,710,167
Total liabilities 183,656 579,163 2,642,013 149,484,051 16,732,794 16,563,359 6,437,820 16,100,302 208,723,158
Deferred inflow of resources
Pension deferrals - - - - - - 304,687 485,068 789,755 Total deferred inflow of resources - - - - - - 304,687 485,068 789,755
Net position
Net investment in capital assets - - - - - - 1,508,368 1,754 1,510,122 Restricted - - - - - - - 11,319,891 11,319,891 Unrestricted 1,705 - - (123,093,574) - 20,987,979 5,330,451 (10,249,953) (107,023,392)
Total net position 1,705$ - - (123,093,574) - 20,987,979 6,838,819 1,071,692 (94,193,379)
Self-Insurance Funds
130
PRINCE GEORGE'S COUNTY, MARYLAND Combining Statement of Revenue, Expenses and Changes in Fund Net Position
Internal Service Funds For the year ended June 30, 2016
Life and Vehicle Computer Unemployment Property Automobile Worker's General Health Maintenance Services Compensation Loss Liability Compensation Liability Benefits Fund Fund Total
Operating revenues: Premium contributions 453,000$ 2,264,997 3,505,781 35,516,428 5,937,598 74,751,353 - - 122,429,157 Sales
Fuel sales - - - - - - 367,787 - 367,787 Office automation sales - - - - - - - 26,532,408 26,532,408
Charges for services: Maintenance and repair charges - - - - - - 12,692,077 - 12,692,077
Use of money and property - rentals - - - - - - 165,331 - 165,331 Miscellaneous - subrogations and other - 12,462 372,830 1,264,022 2,500 649,579 15,754 - 2,317,147
Total operating revenues 453,000 2,277,459 3,878,611 36,780,450 5,940,098 75,400,932 13,240,949 26,532,408 164,503,907 Operating expenses:
Salaries - - - - - - 3,647,786 5,784,554 9,432,340 Fringe benefits - - - - - - 2,717,831 4,322,793 7,040,624 Contractual services - - - - - - 18,611 8,180,232 8,198,843 Materials - - - - - - 111,372 10,466,494 10,577,866 Facility and equipment rental - - - - - - 261,847 64,778 326,625 General and administrative:
Administrative expenses 15,389 182,388 1,184,988 2,985,188 1,632,532 2,555,353 210,067 830,950 9,596,855 State worker's compensation tax - - - 339,690 - - - - 339,690
Depreciation - - - - - - 133,899 - 133,899 Insurance claims 437,178 216,320 1,373,715 48,107,394 9,489,322 56,249,322 - - 115,873,251 Insurance premiums - 1,478,551 - 2,675,497 115,038 17,091,375 - - 21,360,461 Other:
Repair and maintenance - - - - - - 4,735,784 35,687 4,771,471 Other operating expenses - - - - - - - - - Total operating expenses 452,567 1,877,259 2,558,703 54,107,769 11,236,892 75,896,050 11,837,197 29,685,488 187,651,925 Operating income (loss) 433 400,200 1,319,908 (17,327,319) (5,296,794) (495,118) 1,403,752 (3,153,080) (23,148,018)
Nonoperating revenue (expenses): Interest income - 185 7,509 162,323 7,734 - - - 177,751 Gain (loss) on sale of capital assets - - - - - - (9,864) - (9,864)
Total nonoperating revenue (expenses) - 185 7,509 162,323 7,734 - (9,864) - 167,887 Income (loss) before transfers 433 400,385 1,327,417 (17,164,996) (5,289,060) (495,118) 1,393,888 (3,153,080) (22,980,131) Interfund transfer in - - 18,091 1,768,317 5,311,484 - - - 7,097,892 Intrafund transfers out - (400,385) (1,345,508) (5,329,575) (22,424) - - - (7,097,892) Change in net position 433 - - (20,726,254) - (495,118) 1,393,888 (3,153,080) (22,980,131)
Total net position - beginning 1,272 - - (102,367,320) - 21,483,097 5,444,931 4,224,772 (71,213,248) Total net position - end 1,705$ - - (123,093,574) - 20,987,979 6,838,819 1,071,692 (94,193,379)
Exhibit D-2
Self-Insurance Funds
131
Self-Insurance Funds Life and Vehicle Computer Unemployment Property Automobile Worker's General Health Maintenance Services
Compensation Loss Liability Compensation Liability Benefits Fund Fund Total Cash flows from operating activities:
Cash received from customers 453,000$ 4,021 (10,178) 42,098,156 5,940,124 75,432,165 13,207,794 26,652,946 163,778,028 Cash payments to suppliers for goods and services (521,016) - - (3,199,090) (1,589,905) (72,963,956) (5,309,372) (17,145,245) (100,728,584) Cash payments to employees for services - - - - - - (5,785,962) (9,001,953) (14,787,915) Premium and claim payments - 133,429 (168,288) (41,497,501) (3,532,341) - - - (45,064,701) Other cash receipts - - - - - 649,579 15,754 - 665,333
Net cash and cash equivalents provided (used) by operating activities (68,016) 137,450 (178,466) (2,598,435) 817,878 3,117,788 2,128,214 505,748 3,862,161
Cash flows from noncapital financing activities: Interfund transfers in - - 18,091 1,768,317 5,311,484 - - - 7,097,892 Intrafund transfers in (out) - (400,385) (1,345,508) (5,329,575) (22,424) - - - (7,097,892)
Net cash and cash equivalents provided (used) by noncapital financing activities - (400,385) (1,327,417) (3,561,258) 5,289,060 - - - -
Cash flows from capital and related financing activities: Acquisition and construction of capital assets - - - - - - (313,808) - (313,808)
Net cash and cash equivalents used in capital and related financing activities - - - - - - (313,808) - (313,808)
Cash flows from investing activities: Interest on investments - 52 1,447 182,265 7,491 - - - 191,255
Net cash and cash equivalents provided by investing activities - 52 1,447 182,265 7,491 - - - 191,255
Net increase (decrease) in cash and cash equivalents (68,016) (262,883) (1,504,436) (5,977,428) 6,114,429 3,117,788 1,814,406 505,748 3,739,608
Cash and cash equivalents, beginning of year 253,377 441,641 2,751,771 31,714,560 10,611,160 34,197,932 8,056,121 12,419,148 100,445,710 Cash and cash equivalents, end of year 185,361$ 178,758 1,247,335 25,737,132 16,725,589 37,315,720 9,870,527 12,924,896 104,185,318
(Continued)
For the year ended June 30, 2016
Exhibit D-3 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Cash Flows Internal Service Funds
132
Self-Insurance Funds Life and Vehicle Computer Unemployment Property Automobile Worker's General Health Maintenance Services
Compensation Loss Liability Compensation Liability Benefits Fund Fund Total Reconciliation of operating income to net cash
provided (used) by operating activities
Operating income (loss) 433$ - - (17,327,319) (5,296,794) (495,118) 1,403,753 (3,153,080) (24,868,125)
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation - equipment - - - - - - 133,899 - 133,899 Pension expense 608,138 1,109,013 1,717,151 Effect of changes in operating assets and liabilities:
Accounts receivable - 1,024 1,470 (286,435) 26 654,767 (17,401) 120,538 473,989 Inventories - - - - - - (35,984) 4,683 (31,301) Prepaid costs - - - - (664) - 43,840 (137,816) (94,640) Compensated absences and termination benefits payable - - - - - - (33,284) (26,782) (60,066) Accounts payable (96,318) 2,997 (11,648) 125,788 43,267 1,834,655 20,453 2,566,029 4,485,223 Accrued costs - - - - 24 - 4,800 23,163 27,987 Unearned revenue - - - 5,262,248 - 26,045 - - 5,288,293 Due from component units - - - 341,893 - - - - 341,893 Estimated liability on pending claims 27,869 133,429 (168,288) 9,285,390 6,072,019 1,097,439 - - 16,447,858
Total adjustments (68,449) 137,450 (178,466) 14,728,884 6,114,672 3,612,906 724,461 3,658,828 28,730,286 Net cash and cash equivalents provided (used) by operating activities (68,016) 137,450 (178,466) (2,598,435) 817,878 3,117,788 2,128,214 505,748 3,862,161
Non-cash investing, capital and related financing activities:
Decrease (increase) in accrued interest receivable - 52 1,447 19,942 (243) - - - 21,198 -$ 52 1,447 19,942 (243) - - - 21,198
Internal Service Funds For the year ended June 30, 2016
Exhibit D-3, Cont. PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Cash Flows
133
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134
Agency Funds - are legal and accounting methods used by government for the administration of assets that come into its possession and are purely custodial (assets equal liabilities) and do not involve measurement of results of operations.
Exhibits E
Pension Trusts - are fiduciary funds out of which retirement annuities and/or other benefits are paid to authorized and designated public employees.
Other Post Employment Benefit Trust - is used to account for retiree life and health benefits.
FIDUCIARY FUNDS
Trust Funds are used to account for assets held by the Primary Government in a trustee capacity. Agency Funds are used to account for assets held by the Primary Government as an agent for individuals, private organizations, other governments, and/or other funds.
Exhibit E-1
Other Post- Employment
Pension Trust Benefit Funds Trust Fund Total
Assets: Equity in pooled cash and investments 5,079,083$ 1,684,378 6,763,461 Collateral for loaned securities 26,497,460 - 26,497,460 Investments:
Pooled separate accounts 414,569,435 48,822,014 463,391,449 U. S. Government & agency securities 27,790,863 - 27,790,863 Corporate bonds 63,105,198 - 63,105,198 Common stock 218,027,651 - 218,027,651 Real estate investment trust 5,410,969 - 5,410,969 International Government securities 816,278 - 816,278 Preferred stock 195,351 - 195,351 Asset-backed securities 21,921,063 - 21,921,063 Money market funds 417,935,455 2,503,087 420,438,542 Short-term investments 17,673,335 - 17,673,335 Alternative investments 452,844,109 - 452,844,109
Accounts receivable - 60,593 60,593 Accrued interest receivable 1,413,136 447 1,413,583 Prepaid expenses 44,581 21,894 66,475
Total assets 1,673,323,967 53,092,413 1,726,416,380 Liabilities:
Collateral for loaned securities payable 26,497,460 - 26,497,460 Accounts payable 34,282 1,001,920 1,036,202 Accrued costs 977,758 11,810,281 12,788,039
Total liabilities 27,509,500 12,812,201 40,321,701
Net assets held in trust for benefit payments 1,645,814,467$ 40,280,212 1,686,094,679
Pension and Other Postemployment Benefit Trust Funds Combining Statement of Fiduciary Plan Net Position
PRINCE GEORGE'S COUNTY, MARYLAND
June 30, 2016
135
Exhibit E-2
Other Post- Employment
Pension Trust Benefit Funds Trust Funds Total
Additions: Contributions:
Employer 125,840,001$ 30,558,352 156,398,353 Member 22,428,827 13,172,255 35,601,082 Other - 1,226,831 1,226,831 Total contributions 148,268,828 44,957,438 193,226,266
Investment income: Net appreciation (depreciation) in fair value of investments (66,416,104) 2,551,356 (63,864,748) Interest and dividends 42,452,882 13,231 42,466,113 Total investment income (loss) (23,963,222) 2,564,587 (21,398,635) Less investment expense 6,097,755 99,158 6,196,913 Net investment income (loss) (30,060,977) 2,465,429 (27,595,548)
Total additions 118,207,851 47,422,867 165,630,718
Deductions: Benefits 163,390,984 51,342,846 214,733,830 Refunds of contributions 4,121,765 - 4,121,765 General and administrative expenses 2,054,619 1,046,934 3,101,553
Total deductions 169,567,368 52,389,780 221,957,148
Net increase (decrease) (51,359,517) (4,966,913) (56,326,430)
Net position restricted for benefit payments, beginning of year 1,697,173,984 45,247,125 1,742,421,109
Net position restricted for benefit payments, end of year 1,645,814,467$ 40,280,212 1,686,094,679
PRINCE GEORGE'S COUNTY, MARYLAND Combining Statement of Changes in Fiduciary Plan Net Position
Pension and Other Postemployment Benefit Trust Funds For the year ended June 30, 2016
136
Exhibit E-3 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Fiduciary Plan Net Position Pension Trust Funds
June 30, 2016
Comprehensive Pension Plans Supplemental Pension Plans Fire Deputy Correctional Deputy Correctional Crossing General Fire Police
Police Service Sheriff's Officers' Sheriff Officers' Guards AFSCME Schedule Civilian Civilian Total Assets:
Equity in pooled cash and investments 1,190,336$ 1,683,223 420,890 432,910 144,456 122,086 68,851 217,505 501,261 95,522 202,043 5,079,083 Collateral for loaned securities 14,204,166 6,370,785 864,956 1,611,347 53,143 116,893 20,354 1,124,357 1,747,631 101,016 282,812 26,497,460 Investments:
Pooled separate accounts - - 60,546,033 112,792,610 3,719,978 8,182,382 1,424,755 78,703,815 122,332,335 7,070,989 19,796,538 414,569,435 U. S. Government & agency securities 18,226,453 9,564,410 - - - - - - - - - 27,790,863 Corporate bonds 42,964,026 20,141,172 - - - - - - - - - 63,105,198 Common stock 156,151,243 61,876,408 - - - - - - - - - 218,027,651 Real Estate Investment Trust 3,869,076 1,541,893 - - - - - - - - - 5,410,969 International Government securities 546,409 269,869 - - - - - - - - - 816,278 Preferred Stock 134,875 60,476 - - - - - - - - - 195,351 Asset-backed securities 15,270,609 6,650,454 - - - - - - - - - 21,921,063 Money market funds 288,619,109 129,316,346 - - - - - - - - - 417,935,455 Short-term investments 12,266,050 5,407,285 - - - - - - - - - 17,673,335 Alternative investments 304,271,175 148,572,934 - - - - - - - - - 452,844,109
Accrued interest receivable 971,596 440,932 162 406 - 40 - - - - - 1,413,136 Prepaid expenses 23,260 10,485 1,659 3,092 - - 41 2,084 3,251 189 520 44,581
Total assets 858,708,383 391,906,672 61,833,700 114,840,365 3,917,577 8,421,401 1,514,001 80,047,761 124,584,478 7,267,716 20,281,913 1,673,323,967
Liabilities:
Collateral for loaned securities payable 14,204,166 6,370,785 864,956 1,611,347 53,143 116,893 20,354 1,124,357 1,747,631 101,016 282,812 26,497,460 Accounts payable 21,224 5,259 1,161 4,426 50 50 219 550 796 248 299 34,282 Accrued costs 469,535 208,876 45,822 85,388 - - 1,083 57,557 89,788 5,160 14,549 977,758
Total liabilities 14,694,925 6,584,920 911,939 1,701,161 53,193 116,943 21,656 1,182,464 1,838,215 106,424 297,660 27,509,500
Net position restricted for pension benefits 844,013,458$ 385,321,752 60,921,761 113,139,204 3,864,384 8,304,458 1,492,345 78,865,297 122,746,263 7,161,292 19,984,253 1,645,814,467
137
Exhibit E-4 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Changes in Fiduciary Plan Net Position Pension Trust Funds
For the year ended June 30, 2016
Comprehensive Pension Plans Supplemental Pension Plans Fire Deputy Correctional Deputy Correctional Crossing General Fire Police
Police Service Sheriff's Officers' Sheriff's Officers' Guards AFSCME Schedule Civilian Civilian Total Additions:
Contributions: Employer 58,726,423$ 38,078,291 6,780,148 9,525,885 846,400 620,834 85,297 3,248,913 6,607,768 474,312 845,730 125,840,001 Employee 8,415,273 4,303,868 1,580,443 3,416,276 26,337 83,472 66,985 715,902 2,983,908 181,788 654,575 22,428,827 Total contributions 67,141,696 42,382,159 8,360,591 12,942,161 872,737 704,306 152,282 3,964,815 9,591,676 656,100 1,500,305 148,268,828
Investment income :
Net depreciation in fair value of assets (36,331,930) (15,371,162) (2,109,594) (3,894,171) (136,374) (281,686) (53,829) (2,836,717) (4,428,616) (254,213) (717,812) (66,416,104) Interest and dividends 19,972,369 8,924,684 1,951,259 3,608,032 124,727 261,279 49,054 2,605,183 4,064,014 233,712 658,569 42,452,882 Total investment income (16,359,561) (6,446,478) (158,335) (286,139) (11,647) (20,407) (4,775) (231,534) (364,602) (20,501) (59,243) (23,963,222) Less investment expense 2,910,697 1,356,691 274,260 509,740 5,897 12,317 6,728 351,902 548,958 31,654 88,911 6,097,755 Net investment income (19,270,258) (7,803,169) (432,595) (795,879) (17,544) (32,724) (11,503) (583,436) (913,560) (52,155) (148,154) (30,060,977)
Total additions 47,871,438 34,578,990 7,927,996 12,146,282 855,193 671,582 140,779 3,381,379 8,678,116 603,945 1,352,151 118,207,851
Deductions: Benefits 82,938,604 46,067,060 6,954,174 9,305,786 790,199 398,512 145,303 4,339,973 10,377,212 599,487 1,474,674 163,390,984 Refunds of contributions 1,753,711 482,418 90,039 697,058 36,363 8,936 15,063 131,065 641,289 18,593 247,230 4,121,765
General and administrative expenses 628,194 479,212 280,425 219,077 31,822 31,822 29,501 99,769 117,761 67,687 69,349 2,054,619
Total deductions 85,320,509 47,028,690 7,324,638 10,221,921 858,384 439,270 189,867 4,570,807 11,136,262 685,767 1,791,253 169,567,368
Net increase (decrease) (37,449,071) (12,449,700) 603,358 1,924,361 (3,191) 232,312 (49,088) (1,189,428) (2,458,146) (81,822) (439,102) (51,359,517) Net position restricted for pension benefits,
beginning of year 881,462,529 397,771,452 60,318,403 111,214,843 3,867,575 8,072,146 1,541,433 80,054,725 125,204,409 7,243,114 20,423,355 1,697,173,984
Net position restricted for pension benefits, end of year 844,013,458$ 385,321,752 60,921,761 113,139,204 3,864,384 8,304,458 1,492,345 78,865,297 122,746,263 7,161,292 19,984,253 1,645,814,467
138
Exhibit E-5 PRINCE GEORGE'S COUNT Y, MARYLAND
Agency Funds - Primary Government Combining Statement of Changes in Assets and Liabilities
For the year ended June 30, 2016
Balance Balance July 1, 2015 Additions Deductions June 30, 2016
State of Maryland property taxes: Assets:
Cash and investments $ 48 78,530,937 (78,530,754) 231 T axes receivable 639,990 85,647,512 (85,742,693) 544,809
T otal assets 640,038 164,178,449 (164,273,447) 545,040 Liabilities:
Due to State of Maryland 640,038 85,925,909 (86,020,907) 545,040
T otal Liabilities $ 640,038 85,925,909 (86,020,907) 545,040
M-NCPPC property taxes: Assets:
Cash and investments $ 129,207 236,519,400 (234,601,543) 2,047,064 T axes receivable 3,070,121 237,554,761 (237,647,471) 2,977,411 T otal assets $ 3,199,328 474,074,161 (472,249,014) 5,024,475
Liabilities: Due to M-NCPPC $ 3,199,328 237,527,217 (235,702,070) 5,024,475
T otal liabilities $ 3,199,328 237,527,217 (235,702,070) 5,024,475
W ashington Suburban Sanitary Commission charges: Assets:
Cash and investments $ 3,149 14,318,159 (14,310,957) 10,351 T axes receivable 261,022 14,219,947 (14,250,262) 230,707
T otal assets $ 264,171 28,538,106 (28,561,219) 241,058 Liabilities:
Liability - due to W ashington Suburban Sanitary Commission $ 264,171 14,287,844 (14,310,957) 241,058
T otal liabilities $ 264,171 14,287,844 (14,310,957) 241,058
Incorporated towns property taxes: Assets:
Cash and investments $ 391 111,205,226 (111,205,349) 268 T axes receivable 512,673 112,489,574 (113,002,247) -
T otal assets $ 513,064 223,694,800 (224,207,596) 268
Liabilities: Due to towns 513,064 113,789,670 (114,302,466) 268
T otal liabilites $ 513,064 113,789,670 (114,302,466) 268
W ashington Suburban T ransit Commission taxes: Assets:
Cash and investments $ 4,408,711 38,137,457 (33,988,833) 8,557,335 T axes receivable 304,925 21,925,282 (21,946,261) 283,946
T otal assets $ 4,713,636 60,062,739 (55,935,094) 8,841,281
Liabilities: Due to W ashington Suburban T ransit Commission $ 4,713,636 37,763,232 (33,635,587) 8,841,281 T otal liabilities $ 4,713,636 37,763,232 (33,635,587) 8,841,281
(Continued)
139
Exhibit E-5, Cont. PRINCE GEORGE'S COUNT Y, MARYLAND
Agency Funds - Primary Government Combining Statement of Changes in Assets and Liabilities, Continued
For the year ended June 30, 2016
Balance Balance July 1, 2015 Additions Deductions June 30, 2016
Special taxes: Assets:
Cash and investments $ 1,506,322 27,846,623 (27,877,361) 1,475,584 T axes Receivable 1,307,526 30,321,317 (29,909,498) 1,719,345
T otal assets $ 2,813,848 58,167,940 (57,786,859) 3,194,929
Liabilities: Due to other participants $ 2,813,848 30,321,317 (29,940,236) 3,194,929
T otal liabilites $ 2,813,848 30,321,317 (29,940,236) 3,194,929
Agricultural transf er taxes: Assets:
Cash and investments $ 322,450 284,417 (151,128) 455,739
T otal assets $ 322,450 284,417 (151,128) 455,739
Liabilities: Accounts payable $ 138,828 - (138,828) - Due to other governmental units $ 183,622 284,417 (12,300) 455,739
T otal liabilites $ 322,450 284,417 (151,128) 455,739
Inmate Holding Account Assets:
Cash and investments $ 135,994 783,565 (709,352) 210,207 Accounts receivable - 94 - 94
T otal assets $ 135,994 783,659 (709,352) 210,301
Liabilities: Accounts payable $ 92,651 714,600 (638,241) 169,010 Due to participants 43,343 783,659 (785,711) 41,291
T otal liabilities $ 135,994 1,498,259 (1,423,952) 210,301 T otals
Assets: Cash and investments $ 6,506,272 507,625,784 (501,375,277) 12,756,779 T axes receivable 6,096,257 502,158,393 (502,498,432) 5,756,218 Accounts receivable - 94 - 94
T otal assets $ 12,602,529 1,009,784,271 (1,003,873,709) 18,513,091
Liabilities: Accounts payable $ 231,479 714,600 (777,069) 169,010 Due to other governmental units 9,513,859 489,578,289 (483,984,287) 15,107,861 Due to participants 2,857,191 31,104,976 (30,725,947) 3,236,220
T otal liabilities $ 12,602,529 521,397,865 (515,487,303) 18,513,091
140
Exhibits F
NONMAJOR COMPONENT UNITS
Exhibit F-1 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Net Position Nonmajor Component Units
June 30, 2016
Industrial Revenue Development Housing Redevelopment
Prince George's Authority of Authority of Prince George's Prince George's Authority of Authority of Community Prince George's Prince George's County Memorial Community Prince George's Prince George's Television County County Library College County County Total
ASSETS
Current assets: Cash and investments $ 936,691 30,494,110 4,159,643 5,753,657 18,134,072 5,186,543 2,710,958 67,375,674 Receivables (net of allowances for uncollectibles)
Accounts 105,000 11,360,884 - 370,145 24,324,296 496,624 80,408 36,737,357 Notes - - - - - 3,434,107 3,434,107
Accrued interest receivable - - 35 8,734 - - 8,769 Due from primary government - - - 441,749 - - - 441,749 Due from other governmental units - - 1,177,759 93,355 3,067,722 549,677 - 4,888,513 Inventories - - - 300 132,365 - - 132,665 Prepaid costs and deposits 53,282 106,760 - 317,904 1,822,858 1,454 805 2,303,063
Total current assets 1,094,973 41,961,754 5,337,437 6,977,110 47,490,047 6,234,298 6,226,278 115,321,897
Restricted assets: Cash and investments - - 3,875 - 7,626,961 1,367,740 312,492 9,311,068 Land held for transfer and other - - - - - 2,651,832 9,911,552 12,563,384
Total restricted assets - - 3,875 - 7,626,961 4,019,572 10,224,044 21,874,452
Noncurrent assets: Land - 12,705,652 - - 3,184,932 1,116,278 52,734,288 69,741,150 Construction in progress - - - 21,287,199 - 1,637,442 22,924,641 Buildings and improvements - 5,181,165 73,043,523 - 170,984,433 31,095,231 - 280,304,352
Accumulated depreciation - (1,252,121) (29,642,572) - (51,479,722) (19,585,080) - (101,959,495) Improvements other than buildings 229,112 13,682,141 - - - - - 13,911,253
Accumulated depreciation (229,112) (11,656,418) - - - - - (11,885,530) Equipment 170,805 2,069,123 - 13,294,531 41,167,263 985,201 24,008 57,710,931
Accumulated depreciation (128,356) (1,592,776) - (8,313,363) (31,387,111) (1,005,672) (4,201) (42,431,479) Other noncurrent Assets - 3,158,656 - - - 818,351 - 3,977,007
Total noncurrent assets 42,449 22,295,422 43,400,951 4,981,168 153,756,994 13,424,309 54,391,537 292,292,830
Total assets $ 1,137,422 64,257,176 48,742,263 11,958,278 208,874,002 23,678,179 70,841,859 429,489,179
DEFERRED OUTFLOW OF RESOURCES
Pension deferrals - - - 527,032 1,431,947 837,468 - 2,796,447 Deferred charge on refunding - - 939,477 - - - - 939,477
Total deferred outflow of resources - - 939,477 527,032 1,431,947 837,468 - 3,735,924
(Continued)
General Government Education Community Development
141
Exhibit F-1, Cont.
PRINCE GEORGE'S COUNTY, MARYLAND Combining Statement of Net Position
Nonmajor Component Units June 30, 2016
Industrial Revenue Development Housing Redevelopment
Prince George's Authority of Authority of Prince George's Prince George's Authority of Authority of Community Prince George's Prince George's County Memorial Community Prince George's Prince George's Television County County Library College County County Total
LIABILITIES
Current liabilities: Accounts payable $ 4,019 428,331 3,000 729,032 13,848,766 1,047,263 588,859 16,649,270 Accrued liabilities 94,284 - 233,574 945,191 - - 55,125 1,328,174 Due to primary government 450,000 799,938 - 156,063 - 5,296,161 - 6,702,162 Due to other governmental units - 527,915 - - - 711 - 528,626 Unearned revenue 149,180 - 236,440 1,595,011 17,516 - 1,998,147 Deposits - - - - - 123,428 247,500 370,928 Current portion of bonded debt - 297,781 5,510,000 - - 80,000 - 5,887,781 Current portion of capital lease obligations - 126,107 - - 875,145 - 4,540 1,005,792 Current portion of compensated absences and termination benefits payable - - - 64,314 296,876 27,342 - 388,532
Total current liabilities 548,303 2,329,252 5,746,574 2,131,040 16,615,798 6,592,421 896,024 34,859,412
Noncurrent liabilities: Bonded debt, less current portion - 28,000,000 40,045,000 - - 604,667 - 68,649,667 Unamortized premium (discount) - 175,142 (13,829) - - - 161,313 Capital lease obligations, less current portion - 130,656 - - 491,043 - 15,842 637,541 Relocation costs - Compensated absences and termination benefits payable, less current portion - - - 1,715,681 2,070,462 519,511 - 4,305,654 Notes payable, less current portion - 13,565 - - - - 6,917,364 6,930,929 Net pension liability - - - 2,213,082 4,331,013 2,990,702 - 9,534,797 Net OPEB obligation - - - - 1,327,287 - - 1,327,287
Total noncurrent liabilities - 28,319,363 40,031,171 3,928,763 8,219,805 4,114,880 6,933,206 91,547,188
Total liabilities 548,303 30,648,615 45,777,745 6,059,803 24,835,603 10,707,301 7,829,230 126,406,600
DEFERRED INFLOW OF RESOURCES
Pension Deferrals - - - 167,712 353,175 261,782 - 782,669 Total deferred Inflow of resources 167,712 353,175 261,782 782,669
NET POSITION Net investment in capital assets 42,449 14,215,560 17,787,501 4,981,168 151,429,995 11,921,291 49,802,502 250,180,466 Restricted 6,353 2,061,270 - 10,520,063 914,804 11,794,249 25,296,739 Unrestricted (deficit) 540,317 17,331,731 (13,883,506) 1,276,627 23,167,113 710,469 1,415,878 30,558,629
Total net position (deficit) $ 589,119 33,608,561 3,903,995 6,257,795 185,117,171 13,546,564 63,012,629 306,035,834
General Government Education Community Development
142
Exhibit F-2 PRINCE GEORGE'S COUNTY, MARYLAND
Combining Statement of Activities Nonmajor Component Units
For the year ended June 30, 2016
Industrial
Revenue Development Housing Redevelopment
Operating Capital Prince George's Authority of Authority of Prince George's Prince George's Authority of Authority of
Charges for Grants and Grants and Community Prince George's Prince George's County Memorial Community Prince George's Prince George's
Programs / Functions Expenses Services Contributions Contributions Television County County Library College County County Total
Component Units:
General government
PGCT $ 1,702,699 424,555 - (1,278,144) - - - - - - (1,278,144)
Revenue Authority 17,546,642 15,677,038 660,000 131,960 - (1,077,644) - - - - - (1,077,644)
IDA 4,288,566 7,876,914 - - - - 3,588,348 - - - - 3,588,348
Education
Library 31,081,146 948,764 205,551 1,624,722 - - - (28,302,109) - - - (28,302,109)
PGCC 130,406,205 28,340,400 28,302,226 - - - - - (73,763,579) - - (73,763,579)
Community Development
Housing Authority 73,082,225 2,056,300 69,516,444 352,981 - - - - - (1,156,500) - (1,156,500)
Redevelopment Authority 3,560,335 403,756 1,638,259 1,375,000 - - - - - - (143,320) (143,320) Total component units $ 261,667,818 55,727,727 100,322,480 3,484,663 (1,278,144) (1,077,644) 3,588,348 (28,302,109) (73,763,579) (1,156,500) (143,320) (102,132,948)
General revenues:
Other grants and contributions 1,171,326 - - 27,395,109 64,347,054 - - 92,913,489
Investment income 338 131,974 40 7,016 113,353 21,701 882 275,304
Miscellaneous 2,674 441,529 20,979 166,161 611,667 312,632 - 1,555,642
Total general revenues 1,174,338 573,503 21,019 27,568,286 65,072,074 334,333 882 94,744,435
Change in net assets (103,806) (504,141) 3,609,367 (733,823) (8,691,505) (822,167) (142,438) (7,388,513)
Net position - beginning of year 692,925 34,112,702 294,628 6,991,618 182,467,948 14,368,731 63,155,067 302,083,619
Prior period adjustment - - - - 11,340,728 - - 11,340,728 Net position - end of year $ 589,119 33,608,561 3,903,995 6,257,795 185,117,171 13,546,564 63,012,629 306,035,834
Program Revenues Net (Expense) Revenue and Changes in Net Assets
General Government Education Community Development
143
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144
Exhibits G
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
PRINCE GEORGE'S COUNTY, MARYLAND Exhibit G-1 Schedule of Capital Assets Used in the Operation of Governmental Funds -
By Function and Activity (1) June 30, 2016
Function and activity Total Land Buildings Infrastructure Equipment Vehicles Primary government: General government:
Control - legislative, executive and judicial 304,380,983$ 23,487,757 280,633,519 - - 259,707 Staff agencies: - Finance 29,550 - - - 29,550 - Personnel 52,140 - - - 52,140 - Central services 41,047,661 - - 39,570,555 323,134 1,153,972
General government buildings 73,412,332 12,667,199 60,745,133 - - - Other 52,207,840 - - - - 52,207,840
Total staff agencies 166,749,523 12,667,199 60,745,133 39,570,555 404,824 53,361,812 Total general government 471,130,506 36,154,956 341,378,652 39,570,555 404,824 53,621,519
Public safety: State's Atorney 221,431 - - - 27,435 193,996 Police services 69,154,296 2,124,313 44,767,512 - 4,453,413 17,809,058 Fire services 91,146,990 4,719,501 55,691,939 - 4,172,724 26,562,826 Sheriff services 2,143,645 - 32,684 - 430,675 1,680,286 Corrections 108,744,430 1,953,617 106,177,154 - 146,603 467,056 Homeland Security 53,663,067 - - 48,952,026 1,837,435 2,873,606
Total public safety 325,073,859 8,797,431 206,669,289 48,952,026 11,068,285 49,586,828
Environmental Environmental resources 15,369,500 604,804 14,256,906 - 34,939 472,851
Health and human services Health 16,426,420 165,800 15,176,754 - 455,717 628,149 Social services - - - - - -
Toal health and human Services 16,426,420 165,800 15,176,754 - 455,717 628,149
Infrastructure and Development Public works 2,946,292,586 53,527,992 20,401,615 2,814,572,318 215,709 57,574,952
Federal programs 16,334,058 2,856,588 2,540,519 - 7,696,761 3,240,190
Total governmental fund capital assets allocated 3,790,626,929 102,107,571 600,423,735 2,903,094,899 19,876,235 165,124,489 Construction-in-progress 97,415,464
Total primary government 3,888,042,393$
(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.
145
Exhibit G-2
Deductions Net Balance and Inter-agency Balance
July 1, 2015 Additions adjustments transfers June 30, 2016 Primary government: General government:
Control, legislative, executive and judicial 299,920,355$ 4,486,076 (25,448) - 304,380,983 Staff agencies: Finance 29,550 - - - 29,550 Management and budget - - - - - Law - - Personnel 52,140 - - - 52,140 Central services 31,991,657 9,297,473 (241,469) - 41,047,661 Family services - - - - - General government buildings 73,412,332 - - - 73,412,332 Other 57,401,981 - (5,194,141) - 52,207,840
Total staff agencies 162,887,660 9,297,473 (5,435,610) - 166,749,523 Total general government 462,808,015 13,783,549 (5,461,058) - 471,130,506
Public safety: State's attoney 221,431 - - - 221,431 Police services 63,069,531 7,703,805 (1,619,040) - 69,154,296 Fire services 79,853,068 12,075,371 (781,449) - 91,146,990 Environmental resources - - - - - Sheriff services 1,031,204 1,204,288 (91,847) - 2,143,645 Corrections 107,672,108 1,174,293 (101,971) - 108,744,430 Homeland Security 54,782,285 - (1,119,218) - 53,663,067
Total public safety 306,629,627 22,157,757 (3,713,525) - 325,073,859
Environmental 15,354,454 81,604 (66,558) - 15,369,500 Health and human services
Health 16,584,870 99,124 (257,574) - 16,426,420 Social services - - - - -
Infrastructure and Development Public works and transportation 2,848,392,345 99,591,427 (1,691,186) - 2,946,292,586
Federal programs 14,721,507 1,612,551 - - 16,334,058 Construction-in-progress 88,339,803 72,442,282 (63,366,621) - 97,415,464
Total governmental fund capital assets 3,752,830,621$ 209,768,294 (74,556,522) - 3,888,042,393
(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.
PRINCE GEORGE'S COUNTY, MARYLAND Schedule of Changes in Capital Assets Used in the Operation of Governmental Funds -
By Function and Activity (1) For the year ended June 30, 2016
146
Exhibit G-3 PRINCE GEORGE'S COUNTY, MARYLAND
Schedule of Capital Assets Used in the Operation of Governmental Funds - By Source
June 30, 2016
Primary Government
Governmental fund capital assets Land 102,107,571$ Buildings 600,423,735 Infrastructure 2,903,094,899 Equipment 185,000,724 Construction in progress 97,415,464
Total governmental fund capital assets 3,888,042,393$
Investment in governmental fund capital assets from: Capital projects funds: General obligation bonds 71,275,778$ Intergovernmental 5,261,136 General fund revenue 3,755,950,943 Special revenue fund revenue 18,341,928 Federal programs 16,334,058 Other 20,878,550
3,888,042,393$
(1) This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position.
147
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148
Demographic and Economic Information - Demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place.
Operating Information - Service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs.
The Statistical Section provides detailed information for the primary government, as a context for understanding what the information in the comprehensive annual financial report says about the overall financial health of the County in the following areas:
STATISTICAL SECTION (UNAUDITED)
Financial Trends - Information to help the reader understand how the County's financial performance and well-being have changed over time.
Revenue Capacity - Information to help the reader assess the County's most significant local revenue source, the property tax.
Debt Capacity - Information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future.
Table 1
Restated (2) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental activities Net investment in capital assets 1,351,726,843$ 1,421,477,574$ 1,481,956,322$ 1,475,449,993$ 1,466,248,839$ 1,621,314,368$ 1,499,391,740$ 1,487,561,224$ 1,615,022,591$ 1,522,174,313$ Restricted 502,518,691 475,649,709 422,228,258 351,254,119 361,876,157 349,076,708 341,015,595 309,177,376 304,406,663 282,142,696 Unrestricted (deficit) (2) (459,623,656) (567,350,879) (663,421,910) (558,755,424) (562,309,599) (624,691,441) (705,176,214) (954,659,608) (2,448,779,934) (2,448,831,547) Total governmental activities net position 1,394,621,878 1,329,776,404 1,240,762,670 1,267,948,688 1,265,815,397 1,345,699,635 1,135,231,121 842,078,993 (529,350,680.00) (644,514,538)
Business-type activities Net investment in capital assets 118,553,646 131,283,415 143,085,674 156,560,233 148,934,828 143,858,665 107,572,137 142,374,427 139,610,243 150,378,944 Restricted 19,906,051 19,900,630 18,389,718 20,916,015 19,500,275 18,481,818 19,212,114 28,976,024 47,598,939 71,280,452 Unrestricted (deficit) 53,899,957 46,861,226 40,119,901 40,427,579 56,189,966 59,916,152 94,141,653 50,603,289 21,023,001 (6,438,259) Total business-type activities net position 192,359,654 198,045,271 201,595,293 217,903,827 224,625,069 222,256,635 220,925,904 221,953,740 208,232,183 215,221,137
Primary government Net investment in capital assets 1,470,280,489 1,552,760,989 1,625,041,996 1,632,010,226 1,615,183,667 1,765,173,033 1,606,963,877 1,629,935,651 1,754,632,834 1,672,553,257 Restricted 522,424,742 495,550,339 440,617,976 372,170,134 381,376,432 367,558,526 360,227,709 338,153,400 352,005,602 353,423,148 Unrestricted (deficit) (1) (405,723,699) (520,489,653) (623,302,009) (518,327,845) (506,119,633) (564,775,289) (611,034,561) (904,056,319) (2,427,756,933) (2,455,269,806) Total primary government net position 1,586,981,532$ 1,527,821,675$ 1,442,357,963$ 1,485,852,515$ 1,490,440,466$ 1,567,956,270$ 1,356,157,025$ 1,064,032,733$ (321,118,497)$ (429,293,401)$
Notes:
Unrestricted (deficit) net assets noted above (405,723,699)$ (520,489,653)$ (623,302,009) (518,327,845) (506,119,633) (564,775,289) (611,034,561) (904,056,319) (2,427,756,933) (2,455,269,806) Debt issued for capital on behalf of others 481,347,768 481,969,501 470,259,263 435,418,383 399,196,957 445,921,535 483,621,901 486,417,276 483,674,784 503,035,085 County net assets absent effect of this relationship 75,624,069$ (38,520,152)$ (153,042,746)$ (82,909,462)$ (106,922,676)$ (118,853,754)$ (127,412,660)$ (417,639,043)$ (1,944,082,149)$ (1,952,234,721)$
(2) Fiscal Year 2012 amounts restated due to implementation of GASB 65.
(1) The County's governmental activities has an unrestricted deficit because the County issues debt to fund construction costs for two of its component units. Prior to 2008, absent the effect of this relationship, the County would have reported positive assets for its governmental activities and for government-wide purposes. Government-wide unrestricted net position would have been:
PRINCE GEORGE'S COUNTY, MARYLAND NetPosition By Component
Last Ten Fiscal Years
FISCAL YEAR
149
Table 2
2007 2008 2009 2010 2011 2012 (restated) 2013 2014 2015 2016
Expenses Governmental activities: General government (1) 234,249,287$ 276,079,032$ 264,000,847$ 293,993,880$ 278,735,961$ 335,347,065$ 402,876,040$ 413,676,920$ 322,214,792$ 374,611,539$ Public safety (2) 501,713,673 523,937,600 535,747,925 510,354,496 543,688,542 551,296,748 600,225,256 626,789,316 678,934,030 695,921,598 Environmental (3) - - - - - - - 4,432,568.00 5,560,232 4,136,436 Health and Human Services (4) 92,933,730 100,602,469 103,468,096 104,844,923 98,491,351 95,750,683 97,589,420 97,846,141 99,155,575 96,398,021 Infrastructure and Development (5) 82,853,168 82,256,246 76,563,498 73,726,841 86,362,933 55,761,006 91,413,306 104,325,736 107,710,388 115,700,759 Board of Education 657,734,909 665,957,080 652,303,197 684,470,305 656,525,606 649,326,640 715,792,239 716,497,118 684,661,903 742,360,976 Community College 35,272,367 28,438,902 38,415,219 33,644,625 40,125,724 31,862,246 31,383,689 30,767,855 35,644,365 36,129,002 Memorial Library 18,430,402 19,568,825 19,397,277 19,802,615 19,494,605 27,027,089 23,313,523 21,490,903 23,326,087 20,471,180 Interest on long-term debt 46,949,253 59,042,614 54,873,156 49,295,577 51,136,299 47,505,779 46,733,055 57,748,877 58,988,913 56,147,749 Total governmental activities expenses 1,670,136,789 1,755,882,768 1,744,769,215 1,770,133,262 1,774,561,021 1,793,877,256 2,009,326,528 2,073,575,434 2,016,196,285 2,141,877,260 Business-type activities: Solid Waste 95,820,024 97,039,320 99,930,368 87,486,790 95,955,265 98,663,436 95,739,816 95,482,526 91,898,001 94,062,499 Stormwater 29,913,750 33,743,601 35,724,787 48,297,374 42,103,279 42,169,443 43,080,734 52,371,683 54,402,786 55,216,649 Watershed Protection 316,175 1,134,078 1,164,724 Total business-type activities expenses 125,733,774 130,782,921 135,655,155 135,784,164 138,058,544 140,832,879 138,820,550 148,170,384 147,434,865 150,443,872 Total primary government expenses 1,795,870,563$ 1,886,665,689$ 1,880,424,370$ 1,905,917,426$ 1,912,619,565$ 1,934,710,135$ 2,148,147,078$ 2,221,745,818$ 2,163,631,150$ 2,292,321,132$
Program Revenues Governmental activities: Charges for Services : General government (1) 87,079,431$ 63,137,800$ 47,130,404$ 60,275,045$ 55,529,493$ 87,727,105$ 94,431,227$ 83,203,693$ 79,730,348$ 88,751,746$ Public safety (2) 35,696,477 33,963,072 34,964,503 38,398,284 41,420,265 52,677,652 56,363,172 37,430,678 44,390,006 48,168,338 Environmental (3) - - - - - - - 287,158.00 313,784 325,470 Health and Human Services (4) 10,830,733 13,540,038 12,642,837 9,278,928 10,430,145 12,369,621 10,299,291 7,075,381 4,508,261 4,436,424 Infrastructure and Development (5) 69,809,011 25,581,816 43,153,508 57,097,256 29,476,879 130,701,054 33,769,227 56,250,140 49,411,650 90,962,207 Operating grants and contributions General government (1) 19,955,319 59,178,382 39,248,215 56,606,758 57,182,264 26,281,362 25,222,907 12,192,715 24,419,173 22,137,203 Public safety (2) 25,723,138 18,475,021 17,538,135 29,537,332 28,884,685 32,508,021 26,524,768 24,989,052 18,335,079 22,761,497 Environmental (3) 230,114 567,867 84,423 Health and Human Services (4) 60,832,447 61,984,042 65,449,596 65,178,448 71,886,283 68,530,281 67,629,045 69,120,126 79,342,253 73,622,970 Infrastructure and Development (5) 239,159 386,975 1,868,144 2,233,204 4,513,987 8,581,718 2,917,851 13,478,641 22,955,481 21,182,326 Capital grants and contributions General government (1) 6,221,385 5,767,776 5,756,794 36,514,825 7,466,894 2,949,658 198,425 1,775,255 6,235,669 3,813,609 Public safety (2) 1,114,478 3,462,729 3,847,755 4,881,000 8,519,103 3,696,298 4,896,876 2,747,572 8,056,602 684,709 Environmental (3) 211,498 257,127 50,715 Health and Human Services (4) - - - 117,954 351,545 - 169,076 22,000 180,474 54,589 Infrastructure and Development (5) 6,428,142 4,414,109 4,138,715 7,887,841 18,914,344 7,186,862 10,076,015 13,572,964 687,926 8,977,424 Total governmental activities program revenues 323,929,720 289,891,760 275,738,606 368,006,875 334,575,887 433,209,632 332,497,880 322,586,987 339,391,700 386,013,650
continued
PRINCE GEORGE'S COUNTY, MARYLAND Change In Net Position Last Ten Fiscal Years
FISCAL YEAR
The County revised its functional categories for governmental activity expenses in fiscal year 2014. The following represents changes to expenses categories from 2005-2013. (1)General Government- no longer includes States Attorney, Soil Conservation, Department of Family Services, and Department of Housing and Community Development. (2) Public safety added State's Attorney and dropped Department of Environmental Resources. (3) Environment added Department of Environmental Resources and Soil Conservation. (4) Health and Human Services merged (Health and Public Welfare ( Department of Social Services) categories with the Department of Family Services. (5) Infrastructure added the new Department of Permitting, Inspections, and Enforcement and Department of Housing and Community Development to the existing Public Works (Department of Public Works and Transportation) Category.
150
Table 2, continued
2007 2008 2009 2010 2011 2012 (restated) 2013 2014 2015 2016
Program Revenues, continued Business-type activities: Charges for services: Solid waste 82,202,081 84,240,272 86,550,100 90,575,778 90,451,449 89,987,217 91,459,801 90,893,287 92,113,510 95,380,258 Stormwater 5,156,895 3,729,657 3,057,990 3,369,309 2,150,063 1,829,457 2,811,579 3,677,700 3,332,530 3,803,795 Watershed Protection 14,199,502 14,741,320 14,710,922 Capital grants and contributions Stormwater 1,280,775 2,356,379 210,096 1,432,137 1,627,916 1,064,605 2,005,401 1,262,405 92,153 2,555,148 Total business-type activities program revenues 88,639,751 90,326,308 89,818,186 95,377,224 94,229,428 92,881,279 96,276,781 110,032,894 110,279,513 116,450,123 Total primary government program revenues 378,531,511$ 366,064,914$ 457,825,061$ 429,953,111$ 527,439,060$ 425,379,159$ 418,863,768$ 449,424,594$ 449,671,213$ 502,463,773$
Net (Expense)/Revenue Governmental activities (1,465,991,008) (1,469,030,609) (1,402,126,387) (1,439,985,134) (1,360,667,624) (1,676,828,648) (1,750,988,447) (1,676,804,585) (1,676,804,585) (1,755,863,610) Business-type activities (42,143,170) (45,328,847) (45,965,978) (42,681,320) (46,603,451) (45,939,271) (51,893,603) (37,401,971) (37,155,352) (33,993,749) Total primary government net expense (1,508,134,178)$ (1,514,359,456)$ (1,448,092,365)$ (1,482,666,454)$ (1,407,271,075)$ (1,722,767,919)$ (1,802,882,050)$ (1,714,206,556)$ (1,713,959,937)$ (1,789,857,359)$
General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes 549,681,586$ 610,202,347$ 659,038,907$ 732,832,234$ 733,197,993$ 722,138,728$ 707,228,408$ 709,669,105$ 720,937,819$ 779,978,896$ Income taxes 404,809,214 423,422,141 435,714,262 440,257,032 480,489,026 504,817,831 529,764,061 513,350,683 549,887,248 575,334,071 Transfer and recordation taxes 221,761,305 136,725,597 92,709,263 95,796,346 90,645,343 85,069,002 100,116,901 104,407,509 117,209,045 152,241,144 Energy taxes 54,373,964 62,747,183 66,805,287 71,280,769 63,880,450 59,651,917 56,588,560 55,240,457 66,785,516 66,394,765 Telecommunications tax 55,321,521 52,611,249 49,513,889 44,357,561 41,982,171 37,827,000 36,926,752 33,914,325 33,645,771 33,733,670 Unrestricted State shared tax 29,835,059 28,739,189 25,080,807 1,334,216 1,334,399 2,064,874 2,613,510 2,701,111 2,867,440 2,970,706 Other taxes 19,650,191 22,023,675 19,803,811 21,402,102 20,494,339 19,664,177 21,988,466 21,666,726 22,065,496 26,092,859 Investment earnings 42,680,195 38,333,826 29,435,697 9,101,595 3,122,028 3,698,357 (2,115,280) 2,944,473 4,460,524 2,884,002 Grants and contributions 9,246,405 9,875,131 1,371,225 1,970,627 1,865,679 3,212,453 11,822,540 13,355,751 862,813 549,897 Miscellaneous 1,817,209 7,811,548 543,727 1,492,071 840,412 5,197,518 1,426,216 586,179 462,854 519,742 Total governmental activities 1,389,176,649 1,392,491,886 1,380,016,875 1,419,824,553 1,437,851,840 1,443,341,857 1,466,360,134 1,457,836,319 1,519,184,526 1,640,699,752 Business-type activities: Property taxes 31,851,155 37,941,543 44,151,124 49,419,329 47,579,296 43,625,750 39,629,544 37,999,606 38,090,056 39,550,173 Investment earnings 8,442,987 8,200,687 5,235,867 3,953,359 2,971,062 2,333,788 1,583,464 1,165,720 1,382,411 1,432,530 Total business-type activities 40,294,142 46,142,230 49,386,991 53,372,688 50,550,358 45,959,538 41,213,008 39,165,326 39,472,467 40,982,703 Total primary government 1,429,470,791$ 1,438,634,116$ 1,429,403,866$ 1,473,197,241$ 1,488,402,198$ 1,489,301,395$ 1,507,573,142$ 1,497,001,645$ 1,558,656,993$ 1,681,682,455$
Governmental activities Extraordinary items Asset impairment / insurance recovery (1) 7,773,886 8,653,648 - - - - - - - - Special items Legal Recovery - - - 10,700,000 - - - - - -
Business-type activities: Special items Gain on capital asset due to change in estimate - - - 3,342,786 - - - - - -
Change in Net Position Governmental activities (69,040,473) (67,885,075) (22,109,512) (9,460,581) 77,184,216 (233,486,791) (284,628,313) (218,968,266) (157,620,059) (115,163,858) Business- type activities (1,849,028) 813,383 3,421,013 14,034,154 3,946,907 20,267 (10,680,595) 1,763,355 2,317,115 6,988,954 Total primary government (70,889,501)$ (67,071,692)$ (18,688,499)$ 4,573,573$ 81,131,123$ (233,466,524)$ (295,308,908)$ (217,204,911)$ (155,302,944)$ (108,174,904)$
Notes: (1) Relates to impairment loss, net of insurance recoveries from Courthouse fire 11/03/2004. (2) Fiscal Year 2012 amounts restated due to implementation of GASB 65.
FISCAL YEAR
Last Ten Fiscal Years
PRINCE GEORGE'S COUNTY, MARYLAND Change In Net Position, continued
151
Table 3
FISCAL YEAR
2007 2008 2009 2010 2011(3) 2012 2013 2014 2015 2016
General Fund
Reserved 134,748,047$ 148,641,724$ 146,494,025$ 144,338,502$
Unreserved 209,847,753 153,501,293 131,730,338 186,520,591
Nonspendable - - - - 1,593,534.00 1,619,282 1,532,552 1,549,546 1,641,389 2,134,534$
Restricted - - - - 144,187,959.00 164,668,289 156,735,799 160,797,750 170,778,503 161,051,114
Committed - - - - 52,389,072.00 53,570,342 54,968,228 55,424,074 57,807,206 59,356,790
Assigned - - - - 85,733,302.00 87,170,249 63,342,963 52,361,681 53,937,841 48,926,434
Unassigned - - - - 94,256,531.00 76,659,622 82,782,432 30,953,395 34,028,162 116,418,173
Sub-total General Fund 368,976,169 344,595,800 302,143,017 278,224,363 330,859,093 378,160,398 359,361,974 301,086,446 318,193,101 387,887,045
All Other Governmental Funds
Reserved 234,004,815$ 208,115,317$ 200,562,222$ 147,214,598$
Unreserved
Special revenue funds 9,879,522 10,253,895 12,254,369 14,585,859
Capital projects funds 119,329,618 120,072,592 (10,280,606) 6,600,247
Restricted - - - - 145,408,266.00 140,131,186 315,273,781 99,653,204 130,699,334 73,443,535$
Committed - - - - - 10,301,182.00 6,498,711 2,323,282 3,255,831 4,915,107
Assigned 5,481,651 6,525,555 6,357,576 6,264,232 3,277,611 3,677,951
Sub-total all other Governmental Funds 274,372,941$ 363,213,955$ 338,441,804$ 202,535,985$ 168,400,704$ 150,889,917$ 328,130,068$ 108,240,718$ 137,232,776$ 82,036,593$
Total all Governmental Funds 643,349,110$ 707,809,755$ 640,584,821$ 480,760,348$ 499,259,797$ 529,050,315$ 687,492,042$ 409,327,164$ 455,425,877$ 469,923,638$
Notes:
(2) In November 2002, County voters approved a charter amendment to increase the contingency reserve requirement from 3% to 5% of General Fund estimated revenues.
(3) Beginning in fiscal year 2011 the County implemented GASB Statement No. 54 which revised the fund balance categories for Governmental Funds.
(1) The County was required to maintain a contingency reserve equal to 3% of General Fund estimated revenues beginning in the fiscal year 1998. The reserve is intended to help stabilize County budgets against future economic fluctuations and unforeseen emergencies.
PRINCE GEORGE'S COUNTY, MARYLAND
Fund Balances, Governmental Funds
Last Ten Fiscal Years
152
Table 4
FISCAL YEARS 2007 2008 2009 2010 2011 2012 2013 (restated) 2014 2015 2016
Revenues
Taxes 1,334,376,477$ 1,335,935,914$ 1,348,462,490$ 1,412,184,766$ 1,423,616,459$ 1,427,541,836$ 1,449,168,044$ 1,440,900,965$ 1,509,634,512$ 1,633,462,779$ Licenses and permits 27,722,783 20,960,406 17,751,849 17,471,856 18,577,036 18,127,287 22,710,061 21,830,867 25,430,085 37,734,749 Fines and forfeitures 3,637,603 3,506,178 4,444,315 4,351,788 5,877,508 13,459,810 19,684,818 19,885,245 14,964,293 15,239,542 Use and money and property 43,789,806 46,107,420 31,177,059 11,966,421 5,821,464 7,871,454 1,705,533 8,138,507 12,864,236 9,243,883 Charges for services 77,527,480 55,874,984 47,463,048 52,725,012 53,795,309 67,300,432 76,580,819 65,128,244 73,501,819 86,038,845 Intergovernmental 134,926,985 128,630,290 132,186,494 212,201,660 207,706,513 161,533,603 155,741,974 155,812,040 161,173,020 155,192,779 Miscellaneous 3,102,382 2,493,716 6,066,125 6,810,373 5,184,078 7,752,696 6,119,301 10,305,705 2,989,077 3,782,573
Total revenues 1,583,295,933 1,625,083,516 1,593,508,908 1,587,551,380 1,717,711,876 1,720,578,367 1,731,710,550 1,722,001,573 1,800,557,042 1,940,695,150
Expenditures
General Government (1) 209,100,631 209,100,631 187,025,859 195,276,748 214,101,638 229,901,474 229,989,658 264,913,081 197,409,489 196,167,715 Public safety (2) 515,162,619 515,162,619 512,181,110 509,526,761 535,858,802 543,037,453 577,535,728 615,372,626 635,615,369 652,773,699 Enviromental (3) - - - - - - 10,219,798.00 4,323,358.00 4,718,117 3,559,225 Health and Human Services (4) 93,190,158 93,190,158 96,918,135 103,841,312 98,190,664 95,249,039 98,493,348 95,977,561 97,388,090 95,240,267 Infrastructure & Development (5) 16,821,432 16,821,432 16,986,921 15,855,250 26,947,228 20,670,130 25,068,942 32,234,093 34,712,960 34,356,611 Capital projects 109,892,836 109,892,836 103,289,706 82,735,106 82,297,319 74,151,921 90,316,298 138,911,039 122,161,533 108,617,981 Education Board of Education 665,957,080 665,957,080 652,303,197 684,470,305 656,525,606 649,326,640 715,792,239 716,497,118 684,661,903 742,360,976 Community College 28,438,902 28,438,902 38,415,219 33,644,625 40,125,724 31,862,246 31,383,689 30,767,855 35,644,365 36,129,002 Memorial Library 19,568,825 19,568,825 19,397,277 19,802,615 19,494,605 27,027,089 23,313,523 21,490,903 26,534,954 35,357,559 Debt service Interest 69,302,123 69,302,123 74,766,318 78,850,997 86,457,546 86,523,482 83,252,080 85,839,156 97,332,619 109,598,004 Principal 51,231,609 51,231,609 54,073,418 53,598,362 49,896,532 47,537,190 47,206,911 53,855,034 58,141,936 58,313,589 Total expenditures 1,700,177,119 1,778,666,215 1,778,666,215 1,755,357,160 1,777,602,081 1,809,895,664 1,932,572,214 2,060,181,824 1,994,321,335 2,072,474,628
Excess (deficiency) of revenues over (under) expenditures (153,582,699) (185,157,307) (167,805,780) (59,890,205) (89,317,297) (101,699,546) (200,861,664) (338,180,251) (193,764,293) (131,779,478)
Continued
PRINCE GEORGE'S COUNTY, MARYLAND Changes In Fund Balances, Governmental Funds
Last Ten Fiscal Years
The County revised its functional categories for expenditures in fiscal year 2014. Fiscal year 2013 expenditures are restated. The following represents changes to expenditures categories from 2005-2012. (1)General Government- no longer includes States Attorney, Soil Conservation, Department of Family Services, and Department of Housing and Community Development. (2) Public safety added State's Attorney and dropped Department of Environmental Resources. (3) Environment added Department of Environmental Resources and Soil Conservation. (4) Health and Human Services merged (Health and Public Welfare ( Department of Social Services) categories with the Department of Family Services. (5) Infrastructure added the new Department of Permitting, Inspections, and Enforcement and Department of Housing and Community Development to the existing Public Works(Department of Public Works and Transportation) Category.
153
Table 4, continued
FISCAL YEARS 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Other Financing Sources (Uses)
General obligation bonds issued 130,515,000 141,475,827 13,494,208 83,110,000 91,480,000 74,315,000 285,748,000 - 189,689,000 113,835,000 Bond and note premium 7,758,539 1,662,626 - 2,599,354 6,959,315 21,373,503 43,355,574 5,419,224 30,413,518 21,734,711 Other financing notes payable 18,665,000 - - - - - - - - - Capital lease financing - - 2,764,699 - 27,781,000 33,825,000 16,055,642 54,596,149 19,612,680 10,161,624 Reallocation of notes payable 131,013 - - - - - - - - - Transfers in - other funds 88,185,312 78,314,642 100,694,719 94,629,227 98,837,759 101,999,940 89,092,924 94,902,164 92,543,661 95,034,167 Debt Issued: Bond proceeds - refunding 68,615,000 - - - - 175,530,000 191,130,000 - 27,520,000 51,511,805 Bond premium - refunding 4,469,091 - - - - 36,132,555 20,981,662 - 2,234,722 7,990,279 Payment to bond refunding escrow agent (72,998,809) - - - - (221,094,720) (209,562,879) - (29,606,914) (58,956,180) Transfers out - other funds (137,975,312) (87,758,842) (108,972,319) (101,948,927) (105,950,259) (108,786,340) (89,092,924) (94,902,164) (92,543,661) (95,034,167) Total other financing sources (uses) 107,364,834 133,694,253 7,981,307 78,389,654 119,107,815 113,294,938 347,707,999 60,015,373 239,863,006 146,277,239
Extraordinary items Insurance recoveries (2) 7,773,886 8,653,648 - - - - - - - -
Net change in fund balances (70,018,587)$ (25,457,879)$ (51,908,898)$ 18,499,449$ 29,790,518$ 11,595,392$ 146,846,335$ (278,164,878)$ 46,098,713$ 14,497,761$
Debt service as a percentage of noncapital expenditures (3) 6.9% 7.0% 7.7% 7.8% 7.7% 7.8% 7.8% 7.7% 8.8% 9.0%
Notes: (1) For FY01 and prior, includes amounts previously classified as "Transfers in from Component Units."
(2) Relates to insurance recoveries from Courthouse fire November 3, 2004.
(3) Non-capital expenditures represent total expenditures above, less Capital Project Funds and capital outlay expenditures that resulted in capital assets.
Changes In Fund Balances, Governmental Funds, continued Last Ten Fiscal Years
PRINCE GEORGE'S COUNTY, MARYLAND
154
Table 5
Real Property (1) Total Personal Property (2) Total Estimated Assessed Fiscal Year Direct Total Direct Actual Value as a
Ended Tax Unincorporated Public Incorporated Assessed Tax Taxable Percentage of June 30 Assessed Value Estimated Value Rate Personal Property Utilities Ordinary Business Value Rate Value (1) Actual Value
2007 60,716,650,060 69,500,205,330 0.9245 34,671,840 1,172,858,450 1,620,014,257 2,827,544,547$ 2.3116 72,327,749,877$ 89.31% 2008 72,900,955,419 82,244,049,810 0.9149 32,590,380 1,175,976,540 1,609,855,442 2,818,422,362 2.3269 85,062,472,172 87.86 2009 85,155,247,625 99,986,180,539 0.9066 29,129,440 1,232,270,320 1,392,949,067 2,654,348,827 2.2940 102,640,529,366 89.02 2010 96,054,707,346 102,512,190,089 0.8996 32,392,590 1,291,979,150 1,458,374,079 2,782,745,819 2.2724 105,294,935,908 85.55 2011 95,135,150,806 96,199,089,410 0.8998 48,907,200 1,334,149,600 1,366,211,620 2,749,268,420 2.0000 98,948,357,830 93.87 2012 82,964,524,929 83,404,281,380 0.9054 57,630,140 1,332,876,260 1,322,818,970 2,713,325,370 2.0000 86,117,606,750 98.92 2013 75,993,572,331 76,633,200,500 0.9028 50,405,620 1,364,625,200 1,789,642,154 3,204,672,974 2.2830 79,837,873,474 99.49 2014 73,425,415,435 74,563,618,491 0.8971 48,314,610 1,393,889,690 1,313,144,919 2,755,349,219 2.2684 77,318,967,710 99.20 2015 74,172,498,186 76,307,098,100 0.9019 48,442,950 1,485,591,490 1,371,592,328 2,905,626,768 2.2780 79,212,724,868 97.31 2016 76,751,695,412 80,392,825,800 0.9451 61,518,930 1,458,733,380 1,488,314,420 3,008,566,730 2.3720 83,401,392,530 95.63
Notes:
(2) Assessed value and estimated actual values are equal.
Source: State Department of Assessment and Taxation.
(1) Real property figures are based on a "triennial assessment" process. Under this method, only one-third of the properties in the County are reassessed each year. Any increase in value is phased in over a three-year period in equal increments. Therefore, assessed values only reflect the phased-in amounts, while the estimated actual values indicate the full amount of the reassessment based on the latest physical inspection.
(3) Prior to fiscal year 2002, real property had been assessed at 40% of phased-in market value. Effective fiscal 2002, the real property is assessed at 100% of the phased-in market value. Personal Property had already been assessed at 100% of market value. The County tax rate is a weighted average of the unincorporated area and incorporated area rates.
PRINCE GEORGE'S COUNTY, MARYLAND Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
155
Table 6
County Direct Rates - Real Property (1) Overlapping Rates - Real Property
Fiscal Stormwater State of
Year General (2) Pre-Trim (4) Management Total Direct (3) Maryland M-NCPPC WSTC
2007 0.9245 - 0.0540 0.9785 0.1320 0.2790 0.0260
2008 0.9149 - 0.0540 0.9689 0.1320 0.2790 0.0260
2009 0.9066 - 0.0540 0.9606 0.1120 0.2790 0.0260
2010 0.8996 - 0.0540 0.9536 0.1120 0.2790 0.0260
2011 0.8998 - 0.0540 0.9538 0.1120 0.2790 0.0260
2012 0.9054 - 0.0540 0.9594 0.1120 0.2790 0.0260
2013 0.9028 - 0.0540 0.9568 0.1120 0.2790 0.0260
2014 0.8971 - 0.0540 0.9511 0.1120 0.2790 0.0260
2015 0.9019 - 0.0540 0.9559 0.1120 0.2790 0.0260
2016 0.9451 - 0.0540 0.9991 0.1120 0.2940 0.2600
County Direct Rates - Personal Property (1) Overlapping Rates - Personal Property
Fiscal Stormwater State of
Year General (2) Pre-Trim (4) Management Total Direct (3) Maryland M-NCPPC WSTC
2007 2.3116 - 0.1350 2.4466 0.2800 0.6975 0.0650
2008 2.3269 - 0.1350 2.4619 0.2800 0.6975 0.0650
2009 2.2940 - 0.1350 2.4290 0.2800 0.6975 0.0650
2010 2.2724 - 0.1350 2.4074 0.2800 0.6975 0.0650
2011 2.0000 - 0.1350 2.1350 0.2800 0.6975 0.0650
2012 2.0000 - 0.1350 2.1350 0.2800 0.6975 0.0650
2013 2.2830 - 0.1350 2.4180 0.2800 0.6975 0.0650
2014 2.2684 - 0.1350 2.4034 0.2800 0.6975 0.0650
2015 2.2780 - 0.1350 2.4130 0.2800 0.6975 0.0650
2016 2.3723 - 0.1350 2.5073 0.2800 0.7351 0.0650
Notes:
(1) In dollars per $100.00 of assessed value.
(2) Partial year real property improvements billed at pro rata tax rates.
(4) There is no County taxing authority assigned to debt payments for pre-TRIM bonds beginning in fiscal year 2004, because the debt was retired.
PRINCE GEORGE'S COUNTY, MARYLAND
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(3) At the November 1978 General Election, the voters of the County adopted an amendment to the Charter limiting future collection of real property taxes to the amount collected in fiscal year 1979. The amendment, which became effective in December 1978, added Section 817B to the Charter. It is generally referred to as "TRIM" (TRIM is an acronym for Tax Reform Initiative by Marylanders).
156
Table 7
Cities
Fiscal College District Mount New Seat Year Bowie Park Heights Greenbelt Hyattsville Laurel Rainier Carrollton Pleasant
2007 0.322 0.285 0.547 0.766 0.630 0.720 0.790 0.450 0.580
2008 0.352 0.299 0.650 0.766 0.630 0.720 0.790 0.450 0.580
2009 0.352 0.299 0.730 0.786 0.630 0.720 0.790 0.450 0.580
2010 0.380 0.322 0.730 0.786 0.630 0.710 0.790 0.500 0.580
2011 0.380 0.322 0.730 0.786 0.630 0.710 0.790 0.500 0.580
2012 0.400 0.322 0.730 0.790 0.630 0.710 0.790 0.500 0.580
2013 0.400 0.322 0.730 0.790 0.630 0.710 0.790 0.500 0.580
2014 0.400 0.322 1.000 0.790 0.630 0.710 0.790 0.7136 0.580
2015 0.400 0.335 1.000 0.805 0.630 0.710 0.860 0.7121 0.580
2016 0.400 0.335 0.9488 0.8125 0.630 0.710 0.860 0.6652 0.580
Towns
Fiscal Berwyn Capitol Colmar Cottage Eagle Fairmount Year Heights Bladensburg Brentwood Heights Cheverly Manor City Harbor Edmonston Heights
2007 0.486 0.676 0.248 0.412 0.400 0.490 0.690 0.292 0.450 0.420
2008 0.486 0.676 0.248 0.412 0.450 0.490 0.670 0.292 0.500 0.420
2009 0.486 0.740 0.476 0.412 0.480 0.880 0.640 0.292 0.500 0.420
2010 0.486 0.740 0.443 0.412 0.480 1.000 0.600 0.292 0.600 0.388
2011 0.486 0.740 0.382 0.401 0.480 1.038 0.560 0.292 0.600 0.420
2012 0.486 0.740 0.382 0.392 0.480 1.038 0.520 0.292 0.600 0.420
2013 0.516 0.740 0.382 0.392 0.480 1.028 0.488 0.292 0.600 0.420
2014 0.516 0.740 0.3864 0.4619 0.580 1.490 0.650 0.480 0.600 0.460
2015 0.516 0.740 0.4107 0.4619 0.580 1.490 0.650 0.480 0.660 0.460
2016 0.530 0.740 0.4107 0.4619 0.580 1.310 0.650 0.480 0.660 0.460
continued
PRINCE GEORGE'S COUNTY, MARYLAND
Real Property Tax Rates - Overlapping Governments - Cities and Towns
Last Ten Fiscal Years
157
Table 7, continued
Towns
Fiscal Forest Landover North Riverdale University Upper Year Heights Glenarden Hills Morningside Brentwood Park Park Marlboro (4)
2007 0.470 0.296 0.480 0.800 0.288 0.677 0.600 0.240
2008 0.470 0.296 0.480 0.800 0.288 0.641 0.600 0.240
2009 0.510 0.275 0.480 0.800 0.288 0.641 0.600 0.240
2010 0.530 0.296 0.480 0.800 0.347 0.641 0.600 0.240
2011 0.530 0.296 0.480 0.780 0.347 0.641 0.541 0.240
2012 0.567 0.336 0.480 0.780 0.347 0.677 0.584 0.240
2013 0.567 0.336 0.480 0.740 0.347 0.654 0.579 0.240
2014 0.625 0.336 0.480 0.740 0.347 0.654 0.582 0.240
2015 0.625 0.336 0.480 0.740 0.440 0.654 0.632 0.240
2016 0.625 0.331 0.520 0.740 0.440 0.654 0.653 0.240
Notes:
(1) Tax rates are per $100 of assessed value.
(2) The County does not collect personal property taxes for the Cities or Towns.
(3) Taxes collected by the County for other fiscal units, including overlapping governments, are remitted based on actual collections.
(4) During fiscal years 2000 through 2004, the Town of Upper Marlboro did not collect town taxes.
Real Property Tax Rates - Overlapping Governments - Cities and Towns, continued
Last Ten Fiscal Years
PRINCE GEORGE'S COUNTY, MARYLAND
158
Table 8
Taxpayer
Taxable Assessed
Value Rank
Percentage of Total County Taxable
Assessed Value
Taxable Assessed
Value Rank
Percentage of Total County Taxable
Assessed Value
Potomac Electric Power Co. 605,735,180$ 1 2.09% 410,699,262 2 2.25%
Gaylord National, LLC 568,000,000 2 1.96%
Verizon Maryland 281,655,140 3 0.97% 386,977,640 3 2.12%
Empirian Village of Maryland, LLC 271,389,670 4 0.94%
Washington Gas Light Company 255,900,780 5 0.88% 199,172,318 4 1.09%
JKC Stadium (FedEx Field) 208,927,300 6 0.74% 181,825,166 5 0.99%
Greenbelt Homes, Incorporated 177,279,700 7 0.61% 91,519,960 10 0.50%
Baltimore Gas and Electric Co. 169,648,240 8 0.59% 127,904,490 6 0.70%
Summerfield Housing LTD Partnership 150,929,700 9 0.52% 101,661,399 8 0.56%
Prince George's Plaza 147,685,050 10 0.51%
Silver Oaks Campus LLC 115,463,500 7 0.63%
Samuel Zell Trs 97,583,750 9 0.53%
Mirant Chalk Point LLC 483,708,600$ 1 2.65%
Notes:
(1) Source: State of Maryland Department of Assessments and Taxation
Current Year and Nine Years Prior
PRINCE GEORGE'S COUNTY, MARYLAND Principal Taxpayers
2016 2007
159
TABLE 9
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Ended for the Percentage in Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy
2007 660,947,420 656,628,114 99.33 3,881,128 660,509,242 99.93
2008 777,425,089 770,467,248 99.35 6,437,160 776,904,408 99.93
2009 903,375,110 897,803,030 99.35 4,877,247 902,680,277 99.92
2010 1,001,271,795 995,260,491 99.38 5,289,570 1,000,550,061 99.93
2011 987,400,083 981,984,336 99.40 4,534,788 986,519,124 99.10
2012 869,334,583 866,278,838 99.45 2,098,207 868,377,045 99.89
2013 803,094,590 798,920,671 99.64 2,805,654 801,726,325 99.83
2014 778,008,663 773,446,612 99.48 3,321,089 776,767,701 99.84
2015 791,690,172 787,981,697 99.41 2,143,498 790,125,195 99.80
2016 853,046,726 852,874,411 99.98 - 849,427,170 99.58
Notes:
PRINCE GEORGE'S COUNTY, MARYLAND
Property Tax Levies and Collections
Last Ten Fiscal Years
(2) Included is data for all property taxes billed applicable to all funds for Prince George's County, Maryland to include General, Debt Service, and Enterprise Funds. Property taxes billed for the State of Maryland, various municipalities, Washington Suburban Sanitary, Maryland National Capital Park and Planning, and the Washington Suburban Transit Commission, are excluded.
(1) Total collections include collections for adjustments in "total tax levy" in years subsequent to initial tax levy.
(8) There is no County taxing authority assigned to debt payments for pre-TRIM bonds beginning in fiscal year 2004 because the debt was retired.
(3) Taxes are assessed July 1 and semi-annual payments are due September 30 and December 31.
(4) No discounts are allowed.
(5) Interest and penalty at 20% per annum is charged after September 30, except tax bills based upon certifications received after September 30 may be paid within thirty days without interest.
(6) Taxes on real property are collected by sale or legal action or both. Taxes on personal property are enforced by legal action.
(7) Tax sale date is the second Monday in May.
160
Table 10 PRINCE GEORGE'S COUNTY, MARYLAND
Delinquent Taxes and Service Charges Receivable - By Fund
As of June 30, 2016
Unincorporated
Delinquent Business Railroads Corporate Total
taxes by Real Personal and Public Personal General
year Property Property Utilities Property Fund
Year ended
June 30:
2016 $ 2,120,783 54,436 209 1,505,472 3,680,900
2015 769,220 30,053 - 731,714 1,530,987
2014 775,081 16,339 - 423,043 1,214,463
2013 1,059,844 7,549 - 263,950 1,331,343
2012 695,991 17,423 72 211,786 925,272
2011 610,776 9,608 8 231,321 851,713
2010 485,562 14,082 41 200,813 700,498
2009 429,121 9,951 1 235,509 674,582
2008 309,623 10,828 - 179,199 499,650
2007 and prior 1,498,290 2,205,465 206 657,752 4,361,713
$ 8,754,291 2,375,734 537 4,640,559 15,771,121
Enterprise Funds
Maryland-National Washington Washington
Delinquent Capital Park Suburban Suburban Total Stormwater
taxes by and Planning Sanitary Incorporated Transit Agency Management Total All
year State Commission Commission Towns Commission Special Funds Fund Funds
Year ended
June 30:
2016 $ 122,942 863,291 32,553 (3,184) 75,681 1,719,345 2,810,628 136,841 6,628,369
2015 (5,194) 243,137 21,132 (268,024) 19,703 - 10,754 33,989 1,575,730
2014 14,778 155,704 17,667 (76,083) 15,512 - 127,578 26,498 1,368,539
2013 48,963 197,384 18,268 55,791 18,965 - 339,371 36,922 1,707,636
2012 45,009 167,849 23,833 51,788 16,322 - 304,801 32,265 1,262,338
2011 34,023 151,409 21,857 41,558 14,706 - 263,553 29,247 1,144,513
2010 19,698 110,604 17,802 20,577 10,793 - 179,474 21,236 901,208
2009 178,051 103,100 13,213 12,311 10,160 - 316,835 20,251 1,011,668
2008 22,144 105,386 11,948 35,771 10,509 - 185,758 21,031 706,439
2007 and prior 64,395 879,547 52,434 65,125 91,595 - 1,153,096 183,413 5,698,222
$ 544,809 2,977,411 230,707 (64,370) 283,946 1,719,345 5,691,848 541,693 22,004,662
General Fund
Agency Funds
161
Table 11
Maryland HUD Maryland
General CDA Certificates Section Industrial
Fiscal Obligation LGIT Infrastructure of 108 Land Act MDOT Capital
Year Bonds (1) GOB Bonds Participation Notes Loans Loans Leases
2007 1,031,936,113 7,795,000 851,300 66,387,883 7,206,000 285,669 4,818,594 -
2008 1,074,343,312 6,675,000 796,500 55,351,920 6,801,000 262,720 3,760,309 -
2009 1,012,942,759 5,490,000 739,300 42,384,528 6,361,000 238,154 2,643,957 2,764,699
2010 1,032,870,640 4,235,000 679,600 28,935,874 5,893,000 211,859 1,466,254 2,764,699
2011 1,058,301,880 2,905,000 617,300 34,717,732 5,395,000 183,713 982,088 10,664,091
2012 1,076,197,571 1,495,000 552,600 59,875,481 4,907,000 153,586 - 6,491,697
2013 1,356,817,910 - 484,300 51,777,027 4,636,000 121,336 - 19,365,264
2014 1,268,290,559 - 413,300 83,039,920 4,347,000 86,817 - 29,738,883
2015 1,385,801,745 - 339,000 72,116,502 4,038,000 49,867 - 41,572,611
2016 1,409,794,524 - 261,200 61,740,000 3,716,000 - - 41,962,400
Percentage
General Certificates Total of
Fiscal Obligation Revenue of WSSC Capital Primary Personal Per
Year Bonds (1) Bonds Participation (2) Loans Leases Government Income Capita
2007 78,322,894 21,246,201 886,082 2,055,000 - 1,221,790,736 3.85% 1,467.27
2008 84,531,033 16,747,810 687,929 1,420,000 - 1,251,377,533 3.79% 1,506.75
2009 79,350,231 12,028,800 482,209 745,000 - 1,166,170,637 3.51% 1,397.35
2010 84,285,855 7,083,800 266,208 - - 1,168,692,789 3.41% 1,349.99
2011 108,816,464 5,042,425 39,326 - - 1,227,665,019 3.50% 1,404.58
2012 126,235,054 2,934,277 - - 19,419 1,278,861,685 3.32% 1,451.38
2013 192,949,424 758,943 - - 10,090 1,626,920,294 4.22% 1,827.83
2014 182,450,700 385,998 - - - 1,568,753,177 3.90% 1,734.52
2015 198,374,541 - - - - 1,702,292,266 n.a. 1,871.61
2016 187,832,633 - 6,480,279 - - 1,711,787,036 n.a. n.a.
(1) Amounts are net of related premiums, discounts, and adjustments.
Business-Type Activities
PRINCE GEORGE'S COUNTY, MARYLAND
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
General Bonded Debt Other Governmental Activities Debt
162
Table 12
Business-Type Activities
Percentage
General LGIT General General of Actual
Fiscal Obligation Obligation Obligation Property Per
Year Bonds (1) Bonds Bonds (1) Total Value Capita
2007 1,031,936,113 7,795,000 78,322,894 1,118,054,007 1.55% 1,342.69
2008 1,074,343,312 6,675,000 84,531,033 1,165,549,345 1.37% 1,403.41
2009 1,012,942,759 5,490,000 79,350,231 1,097,782,990 1.07% 1,315.40
2010 1,032,870,640 4,235,000 84,285,855 1,121,391,495 1.07% 1,295.35
2011 1,058,301,880 2,905,000 108,816,464 1,170,023,344 1.18% 1,338.63
2012 1,076,197,571 1,495,000 126,235,054 1,203,927,625 1.40% 1,366.33
2013 1,356,817,910 - 192,949,424 1,549,767,334 1.94% 1,741.15
2014 1,268,290,559 - 182,450,700 1,450,741,259 1.88% 1,604.04
2015 1,385,801,745 - 198,374,541 1,584,176,286 2.00% 1,741.74
2016 1,409,794,524 - 187,832,633 1,597,627,157 1.92% n.a.
PRINCE GEORGE'S COUNTY, MARYLAND
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(1) Amounts are net of related premiums, discounts, and adjustments.
Governmental-Type Activities
163
Table 13
Percentage of Debt Applicable
Debt to this Jurisdiction's Governmental Unit: Outstanding Jurisdiction Share of Debt
Prince George's County: County Government 1,517,474,124$ (1) 100.00% 1,517,474,124$ Overlapping areas: Maryland-National Capital Park and Planning Commission 69,083,127 0% - Washington Suburban Sanitary Commission 667,983,147 0% - Underlying towns and cities within the County 34,807,812 0% - Component Unit: IDA of PG County lease revenue bonds 45,555,000 100.00% 45,555,000 Total Direct and Overlapping Debt 2,334,903,210$ 1,563,029,124$
(1) Includes bonds, notes, certificates of participation, loans, and capital leases of governmental activities. Amounts are net of related premiums, discounts, and adjustments.
PRINCE GEORGE'S COUNTY, MARYLAND Direct and Overlapping Governmental Activities Debt
As of June 30, 2016
164
Table 14
PRINCE GEORGE'S COUNTY, MARYLAND
Computation of Direct and Overlapping Debt
June 30, 2016
Gross debt Self-supporting Net debt
Direct debt: principal amount (11) debt principal amount
Primary government:
General obligation bonds:
General purpose $ 968,882,035 - 968,882,035
Stormwater management 144,978,650 144,978,650 (1) -
Solid waste management system 35,062,545 35,062,545 (2) -
School facilities surcharge - supported 289,716,443 289,716,443 (3) -
Telecommunications - supported 20,531,670 20,531,670 (4)
Mass transit 7,738,657 7,738,657 (5) -
Maryland Industrial Land Act Loans - - (6) -
Maryland Community Development Administration Infrastructure Debt 261,200 261,200 (7) -
Revenue bonds:
Solid waste management system - - (2) -
Total direct debt 1,467,171,200 498,289,165 968,882,035
Overlapping debt:
Other governmental units:
Maryland-National Capital Park and Planning Commission general obligation bonds 69,083,127 69,083,127 (8) -
Washington Suburban Sanitary Commission 667,983,147 667,983,147 -
Underlying towns and cities within the County 34,807,812 34,807,812 (9) -
Component unit:
Industrial Development Authority of Prince George's County lease revenue bonds 45,555,000 - (10) 45,555,000
Total overlapping debt 817,429,086 771,874,086 45,555,000
Total direct and overlapping debt $ 2,284,600,286 1,270,163,251 1,014,437,035
Notes:
(1) The debt service payments on bonds issued by the County for stormwater management facilities are supported by a special ad valorem tax and, accordingly, such bonds are considered self-supporting.
(2) County solid waste bonds are repaid from user charges..
(3) Debt service payments on a portion of the school construction bonds are supported by the school facilities surcharge on new residential construction. This portion is considered self-supporting
(4) Debt service payments on the bonds issued for School Renovation Projects are supported by the Telecommunication Tax, levied on telecommunication service in the county.
(6) Debt service costs of the Maryland Industrial Land Act notes are reimbursed to the County under loan agreements with developers.
(7) Debt service costs of the Maryland Community Development Administration note are reimbursed to the County under a loan agreement with Accokeek Volunteer Fire Department.
(8) At June 30, 2012, the County was contingently liable as guarantor on these bonds issued by the Maryland-National Capital Park and Planning Commission.
(9) The debt issued by the towns and cities within the County is supported by the revenue sources of the respective towns and cities.
(10) Debt service costs for the 1994A Lease Revenue Bonds are reimbursed to the County by the State of Maryland pursuant to a lease agreement relating to the Hyattsville Multi-Service Center.
(11) Amounts do not included related premiums, discounts, and adjustments.
(5)These bonds are a liability of the Washington Suburban Transit Commission. The Washington Suburban Transit Commission reimburses the debt service payments on bonds issued by the County for mass transit projects and, accordingly, such bonds are considered self-supporting.
165
Table 15
Legal Debt Margin Calculation for Fiscal Year 2016:
Assessable base of Real Property 80,392,825,800$
Assessable base of Personal Property 3,008,566,730
Debt limit (a total of 6% Real property & 15% of Personal property) 5,274,854,558
Debt applicable to limit:
General obligation bonds 968,882,035
Total net debt applicable to limit 968,882,035
Legal debt margin 4,305,972,523
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Assessable Base - Real property $ 69,500,205,330 $ 82,244,049,810 $ 99,986,180,539 $ 102,512,190,089 $ 96,199,089,410 $ 83,404,281,380 $ 76,633,200,500 $ 74,563,618,491 $ 76,307,098,100 80,392,825,800
Assessable Base - Personal property and
operating real property 2,827,544,547 2,818,422,362 2,654,348,827 2,782,745,819 2,749,268,420 2,713,325,370 3,204,672,974 2,755,349,219 2,905,626,768 3,008,566,730
Debt limit - Percentage of Assessable Base:
Debt limit (a total of 6% of Real Property
Assessable base and 15% of Personal
Property Assessable base). 4,594,144,002 5,357,406,343 6,397,323,156 6,568,143,278 6,184,335,628 5,411,255,688 5,078,692,976 4,887,119,492 5,014,269,901 5,274,854,558
Total net debt applicable to limit 976,252,351 1,020,223,283 963,055,594 701,045,978 711,514,526 713,200,331 899,514,499 844,289,449 944,926,424 968,882,035
Legal debt margin 3,617,891,651$ 4,337,183,060$ 5,434,267,562$ 5,867,097,300$ 5,472,821,102$ 4,698,055,357$ 4,179,178,477$ 4,042,830,043$ 4,069,343,477$ 4,305,972,523$
Total net debt applicable to the
limit as a percentage of debt limit 21.25% 19.04% 15.05% 10.67% 11.51% 13.18% 17.71% 17.28% 18.84% 18.37%
Notes:
1) Prior to fiscal year 2002, real property had been assessed at 40% of the phased-in market value, and personal property at 100% of market value.
The debt limit was 15% of the total assessed value. Effective fiscal 2002, the real property is assessed at 100% of the phased-in market value.
Therefore, effective in fiscal year 2002, the debt limit is a total of 6% of the real property assessable base and 15% of the personal property assessable base.
PRINCE GEORGE'S COUNTY, MARYLAND
Computation of Legal Debt Margin
Last Ten Fiscal Years
166
Table 16 PRINCE GEORGE'S COUNTY, MARYLAND
Revenue Bond Coverage Last Ten Fiscal Years
Less: Net Less: Net Fiscal Total Operating Available Total Operating Available Year Revenues (2) Expenses (3) Revenues Principal Interest (4) Coverage Revenues (2) Expenses (3) Revenues Principal Interest (4) Coverage
2007 88,577,315 72,991,069 15,586,246 2,648,132 896,467 4.40 7,233,631 9,776 7,223,855 2,652,868 4,327,032 1.03 2008 90,150,726 81,910,241 8,240,485 4,498,391 901,821 1.53 7,114,384 9,740 7,104,644 2,681,618 4,301,679 1.02 2009 90,038,702 82,890,321 7,148,381 4,719,010 683,014 1.32 6,781,700 12,524 6,769,176 2,454,034 4,273,567 1.01 2010 93,076,593 79,534,255 13,542,338 4,945,000 453,396 2.51 6,829,328 13,145 6,816,183 2,482,842 4,255,642 1.01 2011 92,447,372 80,517,079 11,930,293 2,041,375 220,568 5.27 7,877,002 18,205 7,858,797 1,877,068 5,493,438 1.07 2012 91,620,951 84,288,431 7,332,520 2,108,148 157,476 3.24 7,873,840 18,878 7,854,962 2,259,349 5,522,879 1.01 2013 92,564,690 82,820,258 9,744,432 2,175,333 88,014 4.31 7,878,061 18,563 7,859,498 4,615,000 3,170,292 1.01 2014 91,655,085 81,336,092 10,318,993 372,945 16,899 26.47 7,867,809 18,500 7,849,309 4,805,000 3,062,800 1.00 2015 92,897,601 82,056,019 10,841,582 385,998 6,305 27.64 7,872,234 18,563 7,853,671 5,025,000 3,065,464 0.97 2016 96,169,647 87,936,833 8,232,814 - - 7,897,893 18,500 7,879,393 5,265,000 2,829,368 0.97
(2) Total revenues includes operating and non-operating revenues and transfers, except gains on disposal of property, intrafund transfers, and grants.
(4) This amount reflects the amount due in the fiscal year (net of accrual) plus bond refunding costs, less interest income. (3) Operating expenses include all expenses and transfers, except interest and debt issuance costs, depreciation and amortization, landfill postclosure expense, loss on disposal of equipment and intrafund transfers.
(1) The Primary Government's debt is comprised of revenue bonds of the Solid Waste Enterprise Fund. The Component Units include revenue bonds of the Industrial Development Authority of Prince Georges's County. The first bond issues of these entities were on Decemver 1, 1990 and September 1, 1987, respectively. The Solid Waste Enterprise bonds were paid in full in Decmber 2015.
Component Units (1)
Debt Service
Primary Government (1)
Debt Service
167
Table 17 PRINCE GEORGE'S COUNTY, MARYLAND
Revenues Bond Coverage (For Bond Covenant Purposes) Last Ten Fiscal Years
Net revenues available for debt service (1) Net debt service requirements Coverage
Gross Operating Net revenues Cash balances Net Fiscal revenues expenses available for available for Interest Gross Net alternative year (2) (3) debt service debt service (4) Principal (5) Total (6) (7) (8)
2007 82,202,081 56,887,188 25,314,893 123,683,976 2,648,132 896,467 3,544,599 23.19 7.14 34.89 2008 84,240,272 64,034,265 20,206,007 109,795,144 4,498,391 901,821 5,400,212 15.60 3.74 20.33 2009 86,550,100 66,452,151 20,097,949 101,193,079 4,719,010 683,014 5,402,024 16.02 3.72 18.73 2010 93,122,207 64,057,763 29,064,444 113,001,227 4,945,000 453,396 5,398,396 17.25 5.38 20.93 2011 92,402,715 63,943,106 28,459,609 112,924,596 2,041,375 220,568 2,261,943 40.85 12.58 49.92 2012 91,651,787 67,660,904 23,990,883 106,135,079 2,108,148 157,476 2,265,624 40.45 10.59 46.85 2013 92,552,052 70,106,124 22,445,928 108,817,130 2,175,333 88,014 2,263,347 40.89 9.92 48.08 2014 92,020,057 63,998,949 28,021,108 118,214,793 372,945 16,899 389,845 236.04 71.88 303.24 2015 92,897,601 65,113,510 27,784,091 122,529,149 385,998 6,305 392,303 236.80 70.82 312.33 2016 96,169,647 71,958,454 24,211,193 119,597,798 - - - 0.00 0.00 0.00
Notes: (1) Included in this schedule are revenue bonds of the Primary Government's Solid Waste Fund, whose first bond issue was on December 1, 1990. (2) Gross revenues includes operating and nonoperating revenues, excluding interest income on the Debt Service Reserve Account. (3) Operating expenses include all expenses and transfers except depreciation and amortization, project charges from other County funds, landfill postclosure expense, overhead allocation, and intrafund transfers.
(5) This amount reflects the amount due in the fiscal year (net of accrual) plus bond refunding costs, less interest income. (6) Gross coverage ratio equals gross revenues divided by net debt service on bonds. (7) Net coverage ratio equals net revenues available for debt service divided by net debt service on bonds. (8) Net alternative coverage ratio equals cash balances available for debt service divided by net debt service on bonds.
(4) Cash balances available for debt service includes net revenues available for debt service during the year and beginning balances for: amount due from other funds, unrestricted cash and investments, restricted cash and investments for the Operation & Maintenance Reserve, the Debt Service Reserve, and the Closing Cost Reserve.
168
Table 18
Personal Income Per Capita
Calendar (thousands personal Civilian Labor Unemployment Registered Year Population (1) of dollars) (2) Income (2) Force (3) Rate (3) pupils (4)
136,095 2006 836,644 30,306,871 35,567 446,366 4.1 133,325 2007 832,699 31,753,583 37,361 448,144 3.7 131,014 2008 830,514 33,026,742 38,847 454,201 4.5 129,752 2009 834,560 33,227,622 38,810 452,754 7.1 127,977 2010 865,705 34,302,938 39,647 462,138 7.7 127,039 2011 874,045 35,036,640 40,215 466,787 7.2 126,671 2012 881,138 38,481,250 43,672 469,150 6.8 123,833 2013 890,081 38,595,921 43,362 467,318 6.9 123,737 2014 904,430 40,215,913 44,465 469,359 6.2 125,136 2015 909,535 n.a. n.a. 495,449 4.7 127,576
Notes:
(5) n.a. represents infromation that was unavailable at the time this table was updated (4) www.mdreportcard.org, updated 1/22/2016.
PRINCE GEORGE'S COUNTY, MARYLAND Demographic and Economic Statistics
Last Ten Calendar Years
(1) Population estimates for 2010 - 2015 are from the U.S. Bureau of the Census, updated July 1, 2015. Estimates for 2016 are not available.
(3) Maryland Department of Labor, Career and Workforce Information, updated June 2016. (2) Bureau of Economic Analysis, U.S. Department of Commerce. (Income data for 2015 is not currently available) Calendar year per capita income figures are shown in the above table, updated Nov4ember 19, 2015.
169
Table 19
PRINCE GEORGE'S COUNTY, MARYLAND Principal Employers Current Calendar Year and Nine Years Prior
Private Sector Employer Employees Rank
Percentage of Total County Employment Employees Rank
Percentage of Total County Employment
United Parcel Service 4,220 1 0.86% 4,220 2 0.86%
Giant Food 3,000 2 0.61% 5,394 1 1.10%
Verizon 2,738 3 0.56% 2,738 4 0.56%
Dimensions Healthcare System 2,500 4 0.51% 3,000 3 0.61%
Marriott International 2,412 5 0.49%
Shoppers Food Warehouse 1,975 6 0.40% 1,975 6 0.40%
MedStar Health (Southern Maryland Hospital Center) 1,709 7 0.35% 1,300 8 0.26%
Safeway 1,605 8 0.33% 2,400 5 0.49%
Melwood 1,428 9 0.29%
Target 1,400 10 0.29%
Chevy Chase Bank 1,456 7 0.30%
Computer Science Corporation 1,200 9 0.24%
Prince George's Hospital Center 1,100 10 0.22%
Public Sector Employers University System of Maryland 1/ 18,726 1 11,730 3
Joint Base Andrews Naval Air Facility Washington* 17,500 2 17,410 1 U.S. Internal Revenue Service* 5,539 3 3,840 7 United States Census Bureau* 4,414 4 4,158 6 NASA/Goddard Space Flight Center* 3,397 5 7,000 4 Prince George's Community College 2,785 6 National Maritime Intelligence-Integration Office* 1,724 7 National Oceanic and Atmospheric Administration* 1,350 8 Adelphi Laboratory Center* 1,200 9 US Food and Drug Administration 1,061 10
Prince George's County Public Schools 16,000 2 Prince George's County Government 6,606 5 Maryland National Park and Planning Commission 1800 8
Notes: Excludes post offices, state and local governments; includes public higher education institutions. * Employee counts for federal and military facilities exclude contractors. Sources: Economic development agencies statewide and Maryland Department of Business and Economic Development, revised October 2015. 1/ Includes UMCP, UMUC and Bowie State University
20062015
170
Table 20
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Government
County Executive 48 48 48 46 45 45 45 45 45 45 County Council 100 111 113 103 101 108 112 114 121 157 Human Relations Commission 12 12 15 13 13 11 11 11 11 Personnel Board 2 2 2 2 2 2 2 2 2 2 Circuit Court 120 124 130 130 130 130 130 130 130 136 Orphans' Court 6 6 6 6 6 6 6 6 6 6 Office of the State's Attorney 148 151 154 152 149 151 167 169 169 178 Citizen Complaint Oversight Panel 2 2 2 1 1 1 1 1 1 1 Office of Finance 75 75 76 74 73 67 67 67 67 67 Office of Business & Regulatory Affairs - - - - - - - - - Office of Community Relations 24 26 26 26 38 35 50 65 65 65 Office of Management and Budget 26 27 27 27 26 25 25 25 24 25 Board of License Commissioners 7 7 7 7 7 7 7 7 7 8 Office of Law 57 60 61 60 60 54 54 54 54 55 Office of Human Resources Management 68 69 70 70 70 66 65 65 65 65 Office of Info. Tech. & Communications 0 0 0 0 0 0 0 0 0 0 Board of Elections 16 18 19 19 19 18 18 18 18 18 Soil Conservation District 13 13 13 13 13 13 13 13 15 15 Office of Central Services 180 182 182 178 170 151 154 158 162 171 Department of Family Services 28 28 28 28 31 28 27 16 15 18 Housing & Community Development 22 22 22 22 21 18 22 22 27 27 Office of Ethics and Accountability - - - - - - 4 4 4 4
Subtotal 954 983 1,001 977 975 936 980 992 1,008 1063 Public Safety
Department of the Environment 1 238 264 263 250 251 236 156 65 61 113 Police Department 1904 2056 2132 2123 2122 2097 2097 2095 2095 2096 Fire/EMS Department 821 833 849 837 846 848 887 892 920 958 Office of the Sheriff 324 338 347 342 335 333 340 342 342 347 Department of Corrections 602 630 646 637 644 639 640 640 640 640 Office of Homeland Security 190 204 214 214 211 210 211 211 211 215 Department of Permitting, Inspections, and Enforcement2 - - - - - - - 279 279 287
Subtotal 4,079 4,325 4,451 4,403 4,409 4,363 4,331 4,524 4,548 4656 Public Works
Department of Public Works & Transportation 287 288 333 329 319 294 294 249 254 254 Subtotal 287 288 333 329 319 294 294 249 254 254
Health Department Health Department 294 291 302 289 261 238 242 231 193 198
Subtotal 294 291 302 289 261 238 242 231 193 198 Public Welfare - Department of
Department of Social Services 13 14 15 15 14 14 15 15 15 20 Subtotal 13 14 15 15 14 14 15 15 15 20
Grand Total 5,627 5,901 6,102 6,013 5,978 5,845 5,862 6,011 6,018 6191
Source: Office of Management and Budget Current Expense Budget 1 Prior to fiscal year 2015 the department name was the Department of Environmental Resources 2 New agencies created in fiscal year 2013 and assumed some of the duties previously assigned to the Department of Environmental Resources
Last Ten Fiscals Years
Function/Agency
PRINCE GEORGE'S COUNTY, MARYLAND Total Government Employees by Function
171
Table 21
estimated projected 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Circuit Court Criminal cases filed 8,765 7,823 7,907 8,783 8,684 8,191 9,299 9,090 9,273 7,960 Juvenile cases filed or reopened 2,353 2,301 2,633 2,242 2,079 2,038 1,984 2,062 2,027 1,429
Office of the Sheriff Number of warrants on file 36,848 42,063 48,307 53,703 48,433 45,770 43,599 40,000 38,000 38,000 Number of domestic related documents served 9,230 9,514 7,496 6,410 7,673 10,013 10,567 12,680 14,875 11,400
Department of Corrections Average daily Correctional Center population 1,482 1,462 1,461 1,229 1,175 1,200 n/a n/a n/a 1,103 Number of inmate court appearances 21,276 n/a n/a n/a n/a n/a n/a n/a n/a n/a
Police Department Number of calls for service 655,994 700,000 676,662 807,592 746,486 616,180 615,000 613,000 611,000 657,100 Number of documented property crimes 37,420 36,457 30,714 31,011 27,757 25,816 24,100 23,800 23,200 18,700
Fire/EMS Department Number of fire calls for service 25,988 25,252 24,625 21,737 22,593 24,196 23,765 23,934 24,000 20,000
Office of Homeland Security Annual call volume 1,263,349 1,561,500 1,546,600 1,547,600 1,548,493 1,334,972 1,258,319 1,300,000 1,350,000 1,400,000
Public Works & Transportation Road miles maintained 1,804 1,818 1,818 1,834 1,841 1,873 1,873 1,900 1,900 1,900 Street resurfacing (in miles) 33 30 15 22 22 18 13 27 25 4
Department of Environmental Resources Abandoned vehicles impounded 3,400 n/a n/a n/a n/a n/a n/a n/a n/a n/a Permits issued by Permits and Review Division 45,000 45,000 29,331 24,682 25,775 24,850 26,000 27,000 n/a n/a
Soil Conservation District Number of new acres covered by completed soil and water quality plans 1,100 1,760 1,320 1,300 8,151 3,367 4,881 4,200 4,200 4,000
Department of Family Services Number of people requesting disability information and assistance 1,216 1,567 2,667 2,500 n/a n/a n/a n/a n/a n/a
Housing & Community Development Number of new units created 1,345 781 1,192 1,200 1,839 2,092 2,350 2,350 2,386 2,506
Department of Social Services Total households receiving energy assistance 7,110 8,085 9,629 11,483 13,764 11,201 10,536 9,871 9,850 9,336
Source: Office of Management and Budget Current Expense Budget
Agency/Program
PRINCE GEORGE'S COUNTY, MARYLAND Operating Indicators by Function/Program
Last Ten Fiscal Years
172
Table 22
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Public Facilities
District Police Stations 6 6 6 6 6 6 6 6 6 6 Fire and Emergency Rescue Stations 44 44 44 44 44 44 51 51 51 49 Emergency Medical Units 54 57 57 58 58 60 59 59 59 59 Parks/Recreation Facilities (active parks) 358 564 560 582 583 584 590 595 599 Multi-Purpose Senior Centers 8 8 8 7 7 7 7 8 8 8 Libraries 20 18 18 18 19 19 19 19 19 19 Public Schools
Elementary Schools 146 142 132 131 131 130 129 135 118 118 Middle Schools 21 32 31 29 29 29 29 29 24 24 High Schools 23 24 30 30 30 30 30 30 32 30 Special Centers 12 12 12 11 9 9 7 7 8 13
Department of Public Works and Transportation Miles of County-maintained Paved Roads 1,784 1,818 1,821 1,834 1,862 1,873 1,873 1,900 1,900 1,900 Signals in Service 232 183 266 266 267 259 260 249 261 263
Emergency Medical Units: Includes Advanced Life Support (ALS) and Basic Life Support (BLS) Ambulances
http://www.princegeorgescountymd.gov/Government/PublicSafety/Fire-EMS/stations.asp Source: Office of Management and Budget Current Expense Budget
Function/Program
PRINCE GEORGE'S COUNTY, MARYLAND Capital Asset Statistics Last Ten Fiscal years
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