Comprehensive Annual Financial Report...conducted of all books and accounts, financial records and...

Comprehensive Annual Financial Report

For the Year Ended December 31, 2018

County of Northampton Easton, Pennsylvania

Prepared by Department of Fiscal Affairs

Cover Photograph Credit

Calvin Beale, Senior Demographer at the United States Department of Agriculture, Economic Research Service with over 60 years of Federal service, visited the majority of counties in the United States. He typically stopped at the county seat and talked to USDA staff, extension service agents, and others about the county and current trends. During his visits, he would photograph the county courthouse, combining his interests in architecture and rural small town America. The County of Northampton Courthouse photograph is among Calvin Beale’s collection featured at www.ers.usda.gov/briefing/population/photos.

i

County Of Northampton, Pennsylvania Comprehensive Annual Financial Report For the Year Ended December 31, 2018

TABLE OF CONTENTS

Page INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................. 1 Government Finance Officers Association Certificate of Achievement ................................................... 5 Organizational Chart ................................................................................................................................ 6 List of Elected and Appointed Officials .................................................................................................... 7 FINANCIAL SECTION Independent Auditors' Report .................................................................................................................. 9 Management’s Discussion and Analysis (Unaudited) ............................................................................. 13 Basic Financial Statements ..................................................................................................................... 24

Government-wide Financial Statements: Statement of Net Position .......................................................................................................... 25 Statement of Activities ................................................................................................................ 26

Fund Financial Statements: Balance Sheet – Governmental Funds ...................................................................................... 28 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ... 30 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ........................................................................................................... 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................ 34 Statement of Net Position – Proprietary Fund ........................................................................... 35 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Fund .............. 36 Statement of Cash Flows – Proprietary Fund ............................................................................ 37 Statement of Fiduciary Net Position – Fiduciary Funds ............................................................. 38 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ......................................... 39

Notes to Financial Statements .......................................................................................................... 40 1 Summary of Significant Accounting Policies ....................................................................... 41 2 Deposit and Investment Risk ............................................................................................... 52 3 Restricted Assets ................................................................................................................. 57 4 Real Estate Taxes ............................................................................................................... 58 5 Interfund Balances ............................................................................................................... 59 6 Capital Assets ...................................................................................................................... 61 7 Long-term Obligations ......................................................................................................... 62 8 Operating Lease .................................................................................................................. 66 9 Pension Plan........................................................................................................................ 66 10 Postemployment Healthcare Plan ....................................................................................... 71 11 Litigation .............................................................................................................................. 74 12 Risk Management ................................................................................................................ 75 13 Commitments and Contingencies ....................................................................................... 76 14 Tax Abatements .................................................................................................................. 77 15 Subsequent Events ............................................................................................................. 78 16 Public Private Partnership (P3) Project ............................................................................... 79

ii

Page FINANCIAL SECTION, CONTINUED Required Supplementary Information ..................................................................................................... 80

Northampton County Employees’ Retirement System: Schedule of Changes in the County’s Net Pension Liability and Related Ratios ...................... 81 Schedule of County Contributions ............................................................................................. 82 Schedule of Investment Returns ................................................................................................ 83 Northampton County Postemployment Healthcare Plan: Schedule of Changes in the County’s OPEB Liability and Related Ratios ...................................... 84 Schedule of County Contributions .................................................................................................... 85 Schedule of Investment Returns ...................................................................................................... 86 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: General Fund ............................................................................................................................. 87 Special Revenue Funds: Children, Youth and Families .............................................................................................. 88 Gracedale Nursing Home .................................................................................................... 89 HealthChoices ..................................................................................................................... 90

Notes to Required Supplementary Information ....................................................................................... 92 Other Supplementary Information ........................................................................................................... 93

Combining Balance Sheet – Nonmajor Governmental Funds ......................................................... 94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ................................................................................................. 95 Combining Balance Sheet – Nonmajor Special Revenue Funds ..................................................... 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds ............................................................................................ 98 Combining Balance Sheet – Capital Projects Funds ....................................................................... 100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Capital Projects Funds .............................................................................................................. 101

Combining Statement of Fiduciary Net Position – Retirement Trust Funds .................................... 102 Combining Statement of Changes in Fiduciary Net Position – Retirement Trust Funds ................ 103

Individual Nonmajor Fund Financial Statements and Schedules .......................................................... 105 Fund Descriptions: ................................................................................................................................. 106

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Special Revenue Funds: Area Agency on Aging ........................................................................................................ 108 Bridges ................................................................................................................................ 109 Community and Economic Development ........................................................................... 110 Conduit ............................................................................................................................... 111 Developmental Programs ................................................................................................... 112 Domestic Relations ............................................................................................................. 113 Drug and Alcohol ................................................................................................................ 114 Emergency Services ........................................................................................................... 115 Environmental Protection ................................................................................................... 116 Gaming ............................................................................................................................... 117 Hotel Room Rental Tax ...................................................................................................... 118 Louise Moore Pine Bequest ............................................................................................... 119 Mental Health ..................................................................................................................... 120 Open Space Initiative ......................................................................................................... 121 Records Improvement and Automation .............................................................................. 122 Schedule of Revenues, Expenditures and Changes in Fund Balance Permanent Fund:

Hugh Moore Trust ............................................................................................................... 123

iii

FINANCIAL SECTION, CONTINUED Page FIDUCIARY FUNDS Fund Descriptions: ................................................................................................................................. 124

Schedule of Changes in Reserved Fund Balances: Employees’ Retirement Trust Fund .......................................................................................... 126

Combining Statement of Changes in Assets and Liabilities: Agency Funds ........................................................................................................................... 128

Schedule Page STATISTICAL SECTION Contents ................................................................................................................................................. 133 Financial Trends

Net Position by Component ..................................................................................... 1 ..................... 135 Changes in Net Position .......................................................................................... 2 ..................... 136 Fund Balances, Governmental Funds ..................................................................... 3 ..................... 138 Changes in Fund Balances, Governmental Funds .................................................. 4 ..................... 140

Revenue Capacity Tax Revenues by Source, Governmental Funds .................................................... 5 ..................... 143 Assessed Value and Estimated Actual Value of Taxable Real Property ................ 6 ..................... 144 Property Tax Rates – Direct and Overlapping Governments .................................. 7 ..................... 146 Principal Property Taxpayers .................................................................................. 8 ..................... 149 Property Tax Levies and Collections ....................................................................... 9 ..................... 150

Debt Capacity Ratios of Outstanding Debt by Type....................................................................... 10 .................... 152 Ratios of General Bonded Debt Outstanding ......................................................... 11 .................... 155 Direct and Overlapping Governmental Activities Debt ........................................... 12 .................... 156 Legal Debt Margin Information ............................................................................... 13 .................... 158

Demographic and Economic Information Demographic and Economic Statistics ................................................................... 14 .................... 160 Principal Employers ................................................................................................ 15 .................... 161

Operating Information Full-time Equivalent County Government Employees by Function ........................ 16 .................... 162 Operating Indicators by Function ............................................................................ 17 .................... 163 Capital Asset Statistics by Function ....................................................................... 18 .................... 166

iv

(This page intentionally left blank)

1

COUNTY OF NORTHAMPTON

NORTHAMPTON COUNTY COURTHOUSE 669 WASHINGTON STREET

EASTON, PENNSYLVANIA 18042-7499

Lamont G. McClure County Executive

Area Code (610) 829-6690 Fax (610) 559-3722

June 28, 2019 To the citizens of Northampton County, Pennsylvania:

Section 708 of the County of Northampton’s (County) Home Rule Charter requires that an annual audit be conducted of all books and accounts, financial records and transactions of all departments within the County by an independent certified public accountant selected by Council. This Comprehensive Annual Financial Report of the County of Northampton for the year ended December 31, 2018 was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants.

This report consists of management’s representations concerning the finances of the County. Consequently, management assumes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the County’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the County’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The County’s financial statements have been audited by RKL, LLP, Lancaster, PA, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County of Northampton for the year ended December 31, 2018, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the County of Northampton’s financial statements for the year ended December 31, 2018, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this document.

The independent audit of the financial statements of the County was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the County’s separately issued Single Audit Report.

2

GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction. The County’s MD&A can be found immediately following the report of the independent auditors in the financial section of this document.

Profile of the Government

The County of Northampton, incorporated on March 11, 1752, is centrally located on the eastern border of the Commonwealth of Pennsylvania (Commonwealth). It is 50 miles north of Philadelphia, 75 miles west of New York City and 80 miles east of Harrisburg, the state capital. The County adjoins the Pocono Mountain resort area. The Delaware River acts as the County's entire eastern border, which separates the County and Commonwealth from the State of New Jersey. The topography of the County's 379.8 square miles is rolling to mountainous. The current population is approximately 303,405.

Northampton County is a third class county as defined by Pennsylvania law. In 1976, the voters approved a Home Rule Charter (Charter) that became effective on January 2, 1978. Under the Charter, the County has the ability to “exercise any power or to perform any function not denied by the Constitution of the United States, by the Constitution of Pennsylvania, by act of the General Assembly of Pennsylvania, or by the Charter.” The County operates under a council-executive form of government.

Council is the 9-member governing body that is empowered to adopt and repeal ordinances and resolutions; to adopt the budget; to confirm the appointment by the Executive of the heads of agencies immediately under his or her direction and supervision; to confirm the appointment of members of authorities, boards, and commissions; to adopt, amend, and repeal the administrative code; to require periodic and special reports from elected officials and their subordinates; to establish, in accordance with the Charter, the salaries and wages of all elected officials, officers, and employees; to set the numbers of officers and employees of each agency; and to approve any collective bargaining agreements with officers and employees. Council members serve four-year staggered terms, alternating every two years between five members elected “at large” and four members elected by district.

The Executive is the elected chief executive and administrative officer whose duties include, either in person or through subordinates, enforcing ordinances, preparing and submitting to Council financial plans and budgets, presenting information and recommendations to Council, executing legal documents, overseeing labor relations, and administering the County’s personnel system. The executive is elected to serve a four-year term.

The County provides a range of services, including the care and protection of County residents from infancy to old age; the court system; incarceration of adults and juveniles; administration of County operations; finance and tax collection; records management; public safety; and recreation. The County is also financially accountable for a legally separate component unit, the Northampton County General Purpose Authority, and two joint ventures, the Lehigh-Northampton Airport Authority and the Lehigh-Northampton Transportation Authority. Additional information on all three of these legally separate entities can be found in Note #1 in the notes to the financial statements.

Local Economy

Job creation and private investment in our cities, boroughs, and townships have shown a modest increase. This is highlighted by several corporate relocations and expansions in the area. Major industries with headquarters or divisions located within the government's boundaries or in close proximity include art supply, cement, paper and plastic, iron casting, and sportswear manufacturers, several financial and insurance institutions, retail sales distribution facilities, shopping, medical, and higher education. In addition, revitalization of the former Bethlehem Steel site continues and currently includes a casino and hotel along with entertainment and television production facilities. Additional warehouse development has also caused economic growth along the Route 33 Corridor in Palmer Township.

3

The County has an employed labor force of approximately 158,767 and an unemployment rate of 4.4%; the lowest in ten years. During the past ten years, the unemployment rate ranged from a low of 4.4% in 2018 to a high of 9% in 2010.

Long-term Financial Planning

The County, together with the Northampton County General Purpose Authority (NCGPA) and Kriger Construction, Inc., are utilizing a public-private-partnership (P3) as a means to repair or replace 33 of the 119 County owned bridges.

As of December 31, 2018, Kriger Construction, Inc. was in compliance with milestone requirements established in the P3 contract although, the project and scope of the project continues to evolve. Negotiations are ongoing relating to a significant modification of the P3 agreement. Current proposed changes primarily relate to a reduction in the scope of the project to 25 from the original 33 bridges. Additional information on the P3 project can be found in Note #16. The majority of the County’s workforce (approximately 76%) is comprised of unionized employees represented by eleven different unions. One union contract ended on December 31, 2018. In 2019 the County has been addressing the labor agreements and expects to continue to have timely settlements and agreements in place with its unionized workforce.

Relevant Financial Policies

The County continues to maintain a financial stabilization fund which was establish in 2010. The fund balance for financial stabilization at December 31, 2018 is $17 million.

For the second consecutive year, the 2019 budget was adopted using only current year revenues, without the use of unassigned fund balance to meet expenditures.

Major Initiatives

On February 13, 2019 the County issued $23,035,000 General Obligation Bonds, Series A of 2019. A portion of the proceeds from the bond issue were used to purchase the Human Services Building as discussed below.

On March 25, 2019 the County purchased the Human Services Building for $14,605,641. This purchase price was contractually determined based on a triple-net lease that had an option to purchase the building after a five year lease period.

The $14 million, previously committed to purchase the Human Services Building, will remain in the capital budget and be used to fund the P3 Bridge milestone payments and other P3 Bridge related costs.

$11 million of the 2019 bond issue proceeds will be used for the construction of a Forensic Center next to the 911 Center on the Gracedale Nursing Home Campus. This project will provide much needed services to the citizens of the County for generations.

Major life and safety projects will continue at the Gracedale Nursing Home. The former Milidis Law Office, at 701 Wolf Avenue, will be razed and the property leveled to provide additional parking, including handicapped parking.

Lastly, the County plans on issuing General Obligation Bonds, Series B of 2019 for the purpose of refunding the remaining balance of $5,085,000 on the General Obligation Bonds, Series 2009.

6

COUNTY OF NORTHAMPTON ORGANIZATIONAL CHART

Voters

Controller

District Attorney

Council

Executive

Court of Common

Pleas

Criminal

Domestic Relations Section

Information Services

Coroner

Corrections

Orphans

Civil

District Judges

Recorder of Deeds

Custodial Services

Procurement

Archives

Financial & Information

Systems

Information, Referral and Emergency

Services

Register Of Wills

Public Works

Bridge Maintenance

Fiscal Affairs

Financial Planning and

Control

Administration

Administrative Services

Parks & Recreation

Revenue

Agricultural Extension

Solicitor

Public Defender

Court Administration

DUI Program

Sheriff

Human Resources

Adult Probation

Building Operations & Maintenance

Disbursements

Assessment

Conservation District

Weights & Measurers

Children, Youth, & Families

Gracedale Nursing Home

Area Agency on Aging

Community & Economic

Development

Court Services

Authorities & Commissions

Pretrial Services

Juvenile Probation

Juvenile Detention

Center

Human Services

Law Library

Jury Management

System

Conduct of Elections

Veterans Affairs

Farmland Preservation

HealthChoices

Mental Health, Developmental Programs, Early

Intervention

Emergency Management

Services

Drug & Alcohol

7

County of Northampton List of Elected and Appointed Officials

Elected Officials

Executive ........................................................................ Lamont G. McClure

Council – District 1 ......................................................... Kevin Lott Council – District 2 ......................................................... Robert F. Werner Council – District 3 ......................................................... John Cusick Council – District 4 ......................................................... Matthew H. Dietz Council – At-Large ......................................................... Ronald R. Heckman, President Council – At-Large ......................................................... Margaret L. Ferraro Council – At-Large ......................................................... Lori Vargo Heffner, Vice-President Council – At-Large ......................................................... Tara M. Zrinski Council – At-Large ......................................................... William B. McGee

District Attorney .............................................................. John Morganelli

Controller ........................................................................ Richard Szulborski

Judge of the Court of Common Pleas ............................ Michael J. Koury, Jr., President Judge Judge of the Court of Common Pleas ............................ F. P. Kimberly McFadden Judge of the Court of Common Pleas ............................ Stephen G. Baratta Judge of the Court of Common Pleas ............................ Paula A. Roscioli Judge of the Court of Common Pleas ............................ Anthony S. Beltrami Judge of the Court of Common Pleas ............................ Craig A. Dally Judge of the Court of Common Pleas ............................ Jennifer R. Sletvold Judge of the Court of Common Pleas ............................ Samuel P. Murray Judge of the Court of Common Pleas ............................ Vacant Judge of the Court of Common Pleas ............................ Senior Vacant Magisterial District Judge – District 03-1-04 .................. Vivian I Zumas, Esq. Magisterial District Judge – District 03-2-01 .................. Roy A. Manwaring, II, Esq. Magisterial District Judge – District 03-2-03 .................. Patricia Broscius, Esq. Magisterial District Judge – District 03-2-04 .................. Alan R. Mege, Esq. Magisterial District Judge – District 03-2-05 .................. Antonia Grifo, Esq. Magisterial District Judge – District 03-2-06 .................. Daniel G. Corpora Magisterial District Judge – District 03-2-08 .................. John C. Capobianco Magisterial District Judge – District 03-2-09 .................. Jackie Taschner, Esq. Magisterial District Judge – District 03-2-10 .................. Nancy Matos Gonzalez Magisterial District Judge – District 03-2-11 .................. Nicholas E. Englesson, Esq. Magisterial District Judge – District 03-2-12 .................. Richard H. Yetter, Esq. Magisterial District Judge – District 03-3-01 .................. Robert A. Hawke Magisterial District Judge – District 03-3-02 .................. Douglas Schlegel, Sr. Magisterial District Judge – District 03-3-03 .................. Alicia R. Zito, Esq. Senior Magisterial District Judge ................................... James J. Narlesky, Esq.

(Continued)

8

List of Elected and Appointed Officials, Continued

Appointed Officials

Court Administrator ..................................................................... J. Jermaine Greene. Sr. Director of Fiscal Affairs .............................................................. Stephen J. Barron, Jr. Director of Administration ........................................................... Charles M. Dertinger Director of Public Works .............................................................. Michael Emili Director of Human Services ........................................................ Sue Wandalowski Director of Corrections ................................................................ James Kostura Director of Human Resources ..................................................... Elizabeth Kelly Director of Community and Economic Development .................. Tina Smith Director of Court Services ........................................................... Kenneth Brown Solicitor ........................................................................................ Melissa Rudas, Esq. Public Defender ........................................................................... Nuria DiLuzio, Esq. Coroner ....................................................................................... Zachary R. Lysek Sheriff .......................................................................................... Richard Johnston Council Clerk ............................................................................... Linda M. Zembo Council Solicitor .......................................................................... Christopher T. Spadoni, Esq.

1800 Fruitville Pike, P.O. Box 8408, Lancaster, PA 17604 Main: 717.394.5666 Fax: 717.394.0693 RKLcpa.com

9

Independent Auditor's Report

County Council County of Northampton Easton, Pennsylvania

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of County of Northampton, Pennsylvania (the County) as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of Northampton County General Purpose Authority, which is both a major governmental fund and 3.4%, 12.6%, and 1.7%, respectively, of the assets, net position, and revenues of the County’s governmental activities. 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 Northampton County General Purpose Authority, 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 Northampton County General Purpose Authority were not audited in accordance with Government Auditing Standards.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

10

Auditor’s Responsibility (continued)

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, based on our audit and the report of the other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of County of Northampton, Pennsylvania, as of December 31, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of a Matter

As discussed in Note 1 to the financial statements, effective January 1, 2018, the County of Northampton, Pennsylvania adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Our audit opinion was not modified with respect to this matter.

Adoption of Governmental Accounting Standards Board Statements

As described in Note 1 to the financial statements, in 2018 the County of Northampton adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans and Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. Our opinion is not modified with respect to this matter.

Other Matter - Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in the County’s net pension liability and related ratios, schedule of County contributions - employees’ retirement system, schedule of investment returns - employees’ retirement system, schedule of changes in the County’s net OPEB liability and related ratios, schedule of County contributions - postemployment healthcare plan, schedule of investment returns - postemployment healthcare plan, and budgetary comparison information (as listed in the 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 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.

11

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise County of Northampton, Pennsylvania’s basic financial statements. The combining nonmajor governmental funds financial statements, combining nonmajor special revenue funds financial statements, combining capital projects funds financial statements and combining fiduciary funds financial statements on pages 94 through 103, the individual non-major fund financial statements and schedules on pages 105 through 132, the information presented in the introductory section on pages 1 through 8, and the information presented in the statistical section on pages 133 through 166 are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining nonmajor governmental funds financial statements, combining nonmajor special revenue funds financial statements, combining capital projects funds financial statements and combining fiduciary funds financial statements on pages 94 through 103 and the individual non-major fund financial statements and schedules on pages 105 through 132 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. In our opinion, the combining nonmajor governmental funds financial statements, combining nonmajor special revenue funds financial statements, combining capital projects funds financial statements and combining fiduciary funds financial statements on pages 94 through 103 and the individual non-major fund financial statements and schedules on pages 105 through 132 are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The information presented in the introductory section on pages 1 through 8 and the statistical section on pages 133 through 166 has not been subjected to the audit procedures applied in the audit of the basic financial statements and, accordingly we do not express an opinion or provide any assurance on those sections.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report, dated May 2, 2019, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance.

May 2, 2019, except as to the individual non-major fund financial statements as schedules on pages 105 through 132, which is as of June 27, 2019 Lancaster, Pennsylvania

12


13

MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)

This section of the County of Northampton’s annual financial report presents our discussion and analysis of the County’s financial performance during the year that ended on December 31, 2018. Please read it in conjunction with the County’s financial statements that follow this section.

FINANCIAL HIGHLIGHTS

Governmental Activities:

The assets of the County of Northampton exceeded liabilities at the end of the year by $80 million (net position).

The County is reporting an unrestricted deficit of ($26.8) million as of December 31, 2018. The unrestricted deficit represents the amount of funds by which the county’s liabilities exceed unrestricted assets. The unrestricted deficit is due to the recent inclusion of the County’s Pension and Other Post-Employment Benefits (OPEB) liabilities as explained in the following bullet.

Pension and OPEB liabilities represent financial obligations of the county to employees and retirees. The enactment of GASB 67/68 and 74/75 requires government entities to report these commitments on the face of the financial statements. Prior to these GASB pronouncements, the actuarial calculation of these obligations was not required to be reported on the financial statements.

The government’s total net position increased by $9.8 million after consideration for a prior period adjustment (Note #1). In addition, the governmental fund balance increased $5.4 million.

At the close of 2018 the County reported an ending net position of $80 million, an increase of $9.8 million. In addition to the increase to fund balance discussed below, the following items also contributed to the increase in net position in 2018:

o Investments in capital assets increased $2 million as the County continues to replace or refurbish County bridges.

o Pension liability and related accounts increased $3.3 million due to differences in actuarial estimates in both benefits paid and expected investment earnings in 2018.

o OPEB liability and related accounts increased $5.2 million due to differences in actuarial estimates in both claims paid and expected investment earnings in 2018.

o Total debt decreased $9.2 million during 2018 due to a reduction in the principal balance of general long-term obligations, lease rental debt and GESA financing.

Governmental Funds:

At the close of 2018 the County’s governmental funds reported an ending fund balance of $105.4 million, an increase of $5.4 million. This is primarily due to the following activity in 2018:

o Gracedale Nursing Home fund balance increased $3.2 million as a result of favorable revenue streams, decreases in key expenditure areas and, net gains from the nursing home assessment and inter-governmental transfer (IGT) programs.

o Expenditures in Public works decreased $2 million primarily due to reduced bridge 102 expenditures.

o Tax base growth generated approximately $1 million in additional general fund real estate tax revenue.

o At the end of 2018, the unassigned fund balance, that which is available for spending at the government’s discretion in the general fund, was $43.1 million, or 46.8% of total general fund expenditures.

o $17.3 million of the unassigned fund balance represents funds designated as financial stabilization. The financial stabilization funds were reclassified in 2018 from a committed fund balance in 2017 to unassigned. Due to modifications of ordinance #526 which reduced restrictions on the use of the funds the reserve no longer qualified as a committed fund balance.

14

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the County of Northampton’s basic financial statements. The County’s basic financial statements are comprised of three parts: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the County of Northampton’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County of Northampton is improving or deteriorating.

The statement of activities presents information showing how the County’s net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g., uncollected taxes and earned but unused vacation leave).

Both of these statements distinguish functions of the County of Northampton 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 governmental activities of the County of Northampton include general government, court operations, corrections, recreation, public works, bridges, and human services.

The government-wide financial statements include not only the County of Northampton itself (known as the primary government), but also a legally separate general-purpose authority (known as the component unit). More information is provided in Note #1.

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. The County of Northampton, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County of Northampton can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The County of Northampton reports 24 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, Children, Youth and Families fund, Gracedale Nursing Home fund, HealthChoices fund and Northampton County General Purpose Authority fund, all of which are considered major funds. Data for the two capital projects funds (the Capital Improvements fund and the 2013 Bond Issue fund) are combined into a single, aggregate presentation and are also considered major funds. Data from the

15

other 17 funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

The County of Northampton adopts an annual appropriated budget for its general fund and special revenue funds. Project length budgets are adopted for capital projects funds. A budgetary comparison statement has been provided for the general fund and major special revenue funds to demonstrate compliance with this budget.

Proprietary Funds

The County of Northampton maintains one type of proprietary fund, an internal service fund. These funds are accounting devices used to accumulate and allocate costs internally among the County’s various functions. The County uses internal service funds to account for employee fringe benefits (healthcare, prescription, vision, and dental coverage), and professional liability. Since these services benefit governmental functions, they are included within governmental activities in the government-wide financial statements.

Proprietary fund statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide information for the self-insurance program.

Fiduciary Funds

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County of Northampton’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County of Northampton’s progress in funding its obligation to provide pension benefits to its employees and other post-employment benefits.

The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information.

16

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the County of Northampton, assets exceeded liabilities by $80 million at the close of 2018.

A large portion of the County of Northampton’s net position, $65.3 million (81.6%) reflects its investment in capital assets (e.g., land and land improvements, buildings and building improvements, machinery and equipment, and infrastructure); less any related debt used to acquire those assets that is still outstanding. The County of Northampton uses these capital assets to provide services to citizens; consequently these assets are not available for future spending. Although the County of Northampton’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the County of Northampton’s net position of $41.6 million (51.9%) represents resources that are subject to external restrictions on how they may be used. At the end of 2018, the County of Northampton is reporting an unrestricted deficit of ($26.8) million.

TotalPercentage

Change2018 2017 (restated) Change 2017-2018

Current and other assets 168,343,245$ 154,079,765$ 14,263,480$ 9.3%Capital assets 169,660,973 167,678,582 1,982,391 1.2%

Total assets 338,004,218 321,758,347 16,245,871 5.0%

Deferred outflow of resources - NOL 9,404,544 - 9,404,544

Deferred outflow of resources - NPL 27,770,924 - 27,770,924 - %

Total assets and deferred outflows 375,179,686 321,758,347 44,016,795 16.6%

Long-term liabilities outstanding 174,077,867 192,001,181 (17,923,314) (9.3%)Other liabilities 104,649,313 44,360,851 60,288,462 135.9%

Total liabilities 278,727,180 236,362,032 42,365,148 17.9%

Deferred inflow of resources - NOL 16,436,033 - 16,436,033 - %

Deferred inflow of resources - NPL - 15,142,695 (15,142,695) - %

Total liabilities and deferred inflows 295,163,213 251,504,727 43,658,486 17.4%

Net position:Net Investment in capital assets 65,274,440 58,669,569 6,604,871 11.3%Restricted 41,579,456 39,930,540 1,648,916 4.1%Unrestricted (26,837,423) (28,346,489) 1,509,066 (5.3%)

Total net position 80,016,473$ 70,253,620$ 9,762,853$ 13.9%

County of Northampton Net PositionGovernmental Activities

17

TotalPercentage

Change2018 2017 (restated) Change 2017-2018

Revenues:Program revenues:

Charges for services 42,423,329$ 38,646,979$ 3,776,350$ 9.8%Operating grants and contributions 204,457,833 195,738,484 8,719,349 4.5%

General revenues:Real estate tax 98,213,216 97,046,640 1,166,576 1.2%Hotel tax 2,574,324 2,654,032 (79,708) (3.0%)Unrestricted investment earnings 2,502,689 1,629,595 873,094 53.6%

Gain on sale of assets 11,334 - 11,334 - %

Total revenues 350,182,725 335,715,730 14,466,995 4.3%

Expenses:General government 31,838,710 33,116,996 (1,278,286) (3.9%)Court system and corrections 80,702,798 72,991,286 7,711,512 10.6%Public works 8,708,172 7,170,130 1,538,042 21.5%Human services 214,720,376 193,249,236 21,471,140 11.1%Capital projects - 63,977 (63,977) (100.0%)Interest on long-term debt 4,449,816 4,792,653 (342,837) (7.2%)

Total expenses 340,419,872 311,384,278 29,035,594 9.3%

Increase in net position 9,762,853 24,331,452 (14,568,599) (59.9%)Net position - January 1, restated (Note #1) 70,253,620 98,927,027 (28,673,407) (29.0%)Cumulative Effect of GASB 75,

Net OPEB Liability - (53,004,859) 53,004,859

Net position - December 31 80,016,473$ 70,253,620$ 9,762,853$ 13.9%

County of Northampton Changes in Net PositionGovernmental Activities

The County’s total revenue from governmental activities increased by 4.3% to $350.1 million. Of the County’s total revenue, 58.4% is received from the federal and state governments in the form of grants, the majority of which are recorded in the special revenue funds (See the pie chart on the next page). Another 28.8% is received as tax revenue in the general and hotel room rental tax funds, and 12.1% is from fees, fines and charges for services.

The real estate tax revenue increase is primarily due to tax base growth.

The County’s expenditures cover a range of services and increased 9.3% to $340.3 million. Approximately 86.8% of expenditures relate to the human services and court system and correction programs.

18

Program Revenues by Source – Governmental Activities

$ 0

$ 50,000,000

$ 100,000,000

$ 150,000,000

$ 200,000,000

$ 250,000,000

General government Court system andCorrections

Public works Human services Interest on long-termdebt

Expenditues

Program revenues

Revenues by Source – Governmental Activities

Charges for services & other

program revenue, 12.1%

Real estate & hotel taxes,

28.8%

Unrestricted investment

earnings, 0.7%

Federal and state grants, 58.4%

19

FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS

As noted earlier, the County of Northampton uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

The focus of the County of Northampton’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of 2018.

As of the end of 2018, the County of Northampton’s governmental funds reported combined ending fund balances of $105.4 million, an increase of $5.4 million.

The general fund unassigned fund balance of $43.1 million represents assets which may be used to meet the government’s ongoing obligations to citizens and creditors.

$17.3 million of the unassigned fund balance represents funds designated as financial stabilization. The financial stabilization funds were reclassified in 2018 from a committed fund balance in 2017 to unassigned. Due to modifications of ordinance #526 which reduced restrictions on the use of the funds the reserve no longer qualified as a committed fund balance.

As a result of the administration’s continued focus on expenditure reduction and cash flow management, the 2019 budget was adopted as a balanced budget using only current year revenue without the use of fund balance for the second consecutive year.

Other committed fund balances represent funds held for capital construction, mainly bridges included in the P-3 project ($17.7 million) and Open Space projects ($3.7 million).

The restricted fund balance is not available for new spending because it has already been restricted to 1) specific special revenue funds for their designated purposes ($36.8 million) or 2) bond-financed capital construction projects ($3.1 million).

The non-spendable fund balance of $1 million, initiated by a donation from the Hugh Moore Trust, was established to generate income for the maintenance of Louise Moore Park.

The general fund is the primary operating fund of the County of Northampton. At the end of 2018, the general fund balance was $43.1 million, all of which was unassigned. As a measure of general fund liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance represents 46.8% of total general fund expenditures.

The County of Northampton’s general fund balance increased $5.4 million during 2018 primarily due to the following:

o Lower than anticipated expenditures due to the administration’s continued focus on spending reduction and cash flow management.

o Increase in real estate tax revenues due to a growing tax base.

o Reduced expenditures in Public Works due to inactivity on Bridge 102 reconstruction.

o Lower than anticipated workers' compensation contributions.

General Fund Budgetary Highlights

During 2018 General Fund budget revisions between the original and final amended budget were negligible in both the revenue and expenditure categories.

Significant variances between the final amended budget and actual revenue and expenditures were negligible with the exception of lower than intergovernmental revenue ($1.3) million due to the following:

Lower than anticipated Federal and State reimbursements for Bridge 102

Temporary Emergency Food Assistance Program received less commodities

Change in Administration’s decision to house federal inmates at the Jail.

20

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

The County of Northampton’s investment in capital assets for its governmental activities as of December 31, 2018, amounts to $169.7 million (net of accumulated depreciation), an increase of 1.2%. This investment in capital assets includes land and land improvements, buildings and building improvements, machinery and equipment, and infrastructure. Construction in progress consists mainly of the replacement and rehabilitation of the bridges contained in the County’s P3 agreement with the GPA, replacement of Inter-County Bridge 162, and interior renovations to the Louise Moore Park homestead. Major capital asset events during the current year included the following:

Replacement of County Bridge 189, 191, 202, 205 and 227 (P3 Project) $6,636,306

Records management system in the civil division, $500,565

Kitchen floor project at the Jail, $201,606

County-wide network switch refresh, $381,965.

Updates to the Nurse call system at Gracedale Nursing Home, $300,000

TotalPercentage

Change

2018 2017 Change 2017-2018

Land 12,169,985$ 12,169,985$ -$ - %Land improvements 5,890,299 6,233,652 (343,353) (5.5%)

111,313,618 115,095,220 (3,781,602) (3.3%)15,074,265 14,213,937 860,328 6.1%

Infrastructure 17,489,864 11,276,454 6,213,410 55.1%Construction in progress 7,722,942 8,689,334 (966,392) (11.1%)

Total 169,660,973$ 167,678,582$ 1,982,391$ 1.2%

Machinery and equipmentBuildings and improvements

County of Northampton Capital Assets

Governmental Activities(net of depreciation)

More detailed information about the County’s capital assets is presented in Note #6 of this report.

21

Long-term Debt

At the end of 2018 the County of Northampton had total bonded and note debt outstanding of $118.3 million, of which the entire amount is backed by the full faith and credit of the government.

2018 2017 ChangeGeneral long-term obligations 85,520,000$ 88,390,000$ (2,870,000)$ (3.2%)Lease rental debt - 3,980,000 (3,980,000) (100.0%)

Total bond debt 85,520,000 92,370,000 (6,850,000) (7.4%)

Bond premium 8,386,157 9,197,756 (811,599) (8.8%)

Bond discount (929,392) (1,012,993) 83,601 (8.3%)

GESA payable:

GESA financing 10,892,333 12,536,929 (1,644,596) (13.1%)

Capital lease payable:

Capital lease building 14,468,731 14,468,731 - -

Total 118,337,829$ 127,560,423$ (9,222,594)$ (7.2%)

General Obligation, Lease Rental Bonds, GESA Financing and Capital Lease FinancingCounty of Northampton Outstanding Debt

TotalPercentage

Change

2017-2018

Governmental Activities

Total debt decreased $9.2 million (7.2%) during 2018. This decrease is attributed to a reduction in the principal balance of general long-term obligations, lease rental debt and GESA financing.

The County received a bond rating of “AA” from Standard and Poor’s Rating Services for the 2009, 2012 and 2013 general obligation bond issues and on the 2003 Northampton County General Purpose Authority revenue bonds.

The amount of indebtedness a county may incur is limited by Pennsylvania law to 300% (non-electoral), and 400% (net non-electoral and lease rental) of a three-year average of the total revenue received, exclusive of governmental grants for a specific purpose. The County of Northampton’s non-electoral debt limit at December 31, 2018 was $911.5 million, and the total debt outstanding was $92.9 million, well below the legal debt limit. The County’s net non-electoral and lease rental debt limit at December 31, 2018 was $1,221 million, and the total debt outstanding was $118.3 million, well below the legal debt limit.

Additional information on the County of Northampton’s long-term debt can be found in Note #7 of this report.

22

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

The 2018 local unemployment rate for the County of Northampton was 4.4% compared to 4.9% in 2017. At the end of 2018, the County’s rate was higher than the Commonwealth of Pennsylvania’s rate of 4.3%, and higher than the national rate of 3.9%.

The County of Northampton is situated between the New York City and Philadelphia metropolitan statistical areas and its inflation rate reflects those areas:

The average New York City region rate was 1.907%,

The average Philadelphia region rate was 1.264%,

The national rate was 2.442%.

All of these factors were considered in preparing the County of Northampton’s budget for 2018.

At the end of 2018, unassigned fund balance in the general fund was $43.1 million. Subsequently, the County of Northampton presented a balanced budget and did not need to appropriate any fund balance for the 2019 budget year. It is intended that current year revenue will be sufficient for the 2019 operating budgets thus avoiding the need to use fund balance or increase taxes or fees and charges.

REQUESTS FOR INFORMATION

This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the County of Northampton’s finances and to demonstrate the County’s accountability for the money it receives. If you have questions about this report or need additional information, contact the County of Northampton, Director of Fiscal Affairs, 669 Washington Street, Easton, PA 18042-7471. This document is also available on the County’s website at www.northamptoncounty.org.

Complete audited financial statements for the Northampton County General Purpose Authority may be obtained by contacting the County of Northampton, Department of Community and Economic Development, 669 Washington Street, Easton, PA 18042-7499.

23


24

Basic Financial Statements

25

COUNTY OF NORTHAMPTON, PENNSYLVANIA

Statement of Net PositionDecember 31, 2018

Activities

ASSETSCash and cash equivalents 105,591,764$ Investments 29,036,763 Receivables:

Real estate taxes 5,679,441 Interest and dividends 352,790 Other 5,334,157

Due from other governments 21,475,382 Other assets 181,327 Deposit on capital asset 691,621 Capital assets:

Land and construction in progress 19,892,927 Other capital assets, net of depreciation 149,768,046

Total capital assets 169,660,973

Total assets 338,004,218

DEFERRED OUTFLOW OF RESOURCES

Deferred outflows of resources - OPEB 9,404,544

Deferred outflows of resources - pension 27,770,924

TOTAL ASSETS and DEFERRED OUTFLOWS OF RESOURCES 375,179,686

LIABILITIES Accounts payable and accrued liabilities 22,132,164 Due to other governments 662,580 Unearned revenue 7,884,996 Other liabilities 9,761,988 Compensated absences:

Due within one year 910,000 Due in more than one year 6,663,753

Accrued self-insurance claims:Due within one year 2,428,846 Due in more than one year 3,043,384

Long-term obligations payable:Due within one year 9,685,403 Due in more than one year 108,652,426

Net OPEB Liability 51,183,336 Net Pension Liability 55,718,304

Total liabilities 278,727,180

DEFERRED INFLOWS OF RESOURCES

Deferred inflows of resources - OPEB 16,436,033

TOTAL LIABILITIES and DEFERRED INFLOWS OF RESOURCES 295,163,213

NET POSITION (DEFICIT) Net investment in capital assets 65,274,440 Restricted for:

General Purpose Authority 1,280,051 County nursing home 5,410,637 Community and economic development 1,834,854 County wide surveys and studies 43,155 Drug and alcohol programs 851,719 Emergency services 125,343 Environmental projects 1,694,507 Future gaming grants 2,806,947 Future hotel tax grants 334,551 Bridge repairs and replacement 3,227,154 Louise Moore Park projects 443,434 Records improvements 830,405 Behavioral health programs 17,897,401 Workers compensation claims 3,799,298 Hugh Moore Trust, nonexpendable 1,000,000

Unrestricted (26,837,423)

Total net position 80,016,473$

The notes to the financial statements are an integral part of this statement.

Governmental

26

Indirect Charges OperatingExpense for Grants and

Functions/Programs Expenses Allocation Services Contributions

Primary government:Governmental activities:

General government 34,572,463$ (2,733,753)$ 16,372,070$ 3,171,319$ Court system and corrections 79,691,242 1,011,556 11,106,554 9,326,259

Public works 10,523,822 (1,815,650) 251,097 1,535,372

Human services 211,182,529 3,537,847 14,693,608 190,424,883 Capital projects - - - -

Interest on long-term debt 4,449,816 - - - Total primary government 340,419,872$ - $ 42,423,329$ 204,457,833$

General revenues:Real estate taxHotel room rental taxUnrestricted investment earningsGain on sale of capital assets

Total general revenues and special items

Change in net positionNet position - January 1, restated (Note #1)Net position - December 31


COUNTY OF NORTHAMPTON, PENNSYLVANIAStatement of Activities


Program Revenues

27

Net (Expense) Revenue and

Changes in Net Position

Activities

(12,295,321)$ (60,269,985)

(6,921,703)

(9,601,885) -

(4,449,816) (93,538,710)$

98,213,216$ 2,574,324 2,502,689

11,334 103,301,563

9,762,853 70,253,620 80,016,473$

Governmental

28

CapitalProjectsFunds

ASSETSCash and cash equivalents 45,826,736$ 52,501$ 11,112,944$ Investments 15,003,618 - 6,821,087 Receivables:

Taxes 5,499,196 - - Interest and dividends 205,881 - 104,074 Other 1,448,231 - -

Due from other funds 6,617,761 5,838,312 3,338,439 Due from other governments - 5,685,825 - Other assets - - -

Total assets 74,601,423$ 11,576,638$ 21,376,544$

LIABILITIES Accounts payable and accrued liabilities 6,408,558$ 4,289,112$ 590,410$ Due to other funds 18,832,741 - 30,253 Due to other governments - 458,926 - Unearned revenue - 4,905,414 - Other liabilities 1,672,949 - -

Total liabilities 26,914,248 9,653,452 620,663

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 4,542,999 1,923,186 -

Total deferred inflows of resources 4,542,999 1,923,186 -

FUND BALANCE Non-spendable:

Permanent fund principal - - - Spendable:

Restricted for:County nursing home - - - Community and economic development - - - County wide surveys and studies - - - Drug and alcohol programs - - - Emergency services - - - Environmental projects - - - Future gaming grants - - - Future tourism grants - - - Bridge repairs and replacement - - - Louise Moore Park projects - - - Records improvements - - - Behavioral health programs - - - General Purpose Authority - - - Bond financed improvements - - 3,058,963

Committed to:Open space projects - - - Capital construction - - 17,696,918

Unassigned:Financial stabilization 17,311,520 - Other 25,832,656 - -

Total fund balances 43,144,176 - 20,755,881

Total liabilities, deferred inflows of resources and fund balances 74,601,423$ 11,576,638$ 21,376,544$


COUNTY OF NORTHAMPTON, PENNSYLVANIABalance Sheet

Governmental FundsDecember 31, 2018

General

Children,Youth andFamilies

29

Gracedale General Other TotalNursing Purpose Governmental GovernmentalHome Authority Funds Funds

16,695$ 26,010,553$ 2,123,277$ 14,393,842$ 99,536,548$ - - - 1,407,992 23,232,697

- - - 180,245 5,679,441 - - - 1,073 311,028

1,111,897 47,873 474,208 2,251,948 5,334,157 - - - 9,538,437 25,332,949

14,053,890 - - 1,735,667 21,475,382 - 81,327 - - 81,327

15,182,482$ 26,139,753$ 2,597,485$ 29,509,204$ 180,983,529$

2,391,902$ 33,095$ 67,434$ 7,034,532$ 20,815,043$ 2,824,254 120,218 1,250,000 2,393,036 25,450,502

- - - 203,654 662,580 - - - 2,979,582 7,884,996 - 8,089,039 - - 9,761,988

5,216,156 8,242,352 1,317,434 12,610,804 64,575,109

4,555,689 - - - 11,021,874

4,555,689 - - - 11,021,874

- - - 1,000,000 1,000,000

5,410,637 - - - 5,410,637 - - - 1,834,854 1,834,854 - - - 43,155 43,155 - - - 851,719 851,719 - - - 125,343 125,343 - - - 1,694,507 1,694,507 - - - 2,806,947 2,806,947 - - - 334,551 334,551 - - - 3,227,154 3,227,154 - - - 443,434 443,434 - - - 830,405 830,405 - 17,897,401 - - 17,897,401 - - 1,280,051 - 1,280,051 - - - - 3,058,963

- - - 3,706,331 3,706,331 - - - - 17,696,918

- - - - 17,311,520 - - - - 25,832,656

5,410,637 17,897,401 1,280,051 16,898,400 105,386,546

15,182,482$ 26,139,753$ 2,597,485$ 29,509,204$ 180,983,529$

HealthChoices

30

COUNTY OF NORTHAMPTON, PENNSYLVANIAReconciliation of the Governmental Funds Balance Sheet

to the Statement of Net PositionDecember 31, 2018

Total fund balances for governmental funds 105,386,546$

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

Capital assets and deposits on capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of:

Land $ 12,169,985Construction in progress 7,722,942 Land improvements, net of $7,948,748 accumulated depreciation 5,890,299 Buildings and improvements, net of $102,543,054 accumulated depreciation 111,313,618 Machinery and equipment, net of $35,716,487 accumulated depreciation 15,074,265 Infrastructure, net of $6,368,270 accumulated depreciation 17,489,864

Total capital assets 169,660,973

Deposit on capital asset 691,621

Some of the County's real estate taxes and intergovernmental revenue will be collected after year-end, but are not available soon enough to pay forthe current period's expenditures, and therefore are reported as deferredinflows of resources in the funds. 11,021,874

Internal service funds are used by the County to charge the costs of healthcare,worker's compensation and professional liability insurance to individual funds.The assets and liabilities of the internal service funds are included ingovernmental activities in the statement of net position. 6,413,342

Deferred inflows and outflows related to OPEB are not financial resources and therefore are not reported in the governmental funds. (7,031,489)

Deferred inflows and outflows related to pension are not financial resources and therefore are not reported in the governmental funds. 27,770,924

Long-term liabilities applicable to the County's governmental activities are notdue and payable in the current period and accordingly are not reported asfund liabilities. Interest on long-term debt is not accrued in governmentalfunds, but rather is recognized as an expenditure when due. Allliabilities--both current and long-term--are reported in the statement of netposition.

Balances at December 31, 2018 are:Accrued interest on bonds (1,084,096) Bonds and notes payable (85,520,000) Capital leases payable (14,468,731) GESA payable (10,892,333) Compensated absences (7,573,753) Net OPEB liability (51,183,336) Net pension liability (55,718,304) Unamortized discount 929,392 Unamortized premium (8,386,157)

Total long-term liabilities (233,897,318)

Net position of governmental activities 80,016,473$


31


32

CapitalProjects

General Funds

REVENUESTaxes 98,373,154$ - $ - $ Intergovernmental 3,460,875 27,274,587 - Fees, fines, charges and miscellaneous 12,888,190 2,712,047 - Investment income 1,461,344 - 246,260

Total revenues 116,183,563 29,986,634 246,260

EXPENDITURES Current: General government 16,085,652 - -

Court system and corrections 60,758,527 7,659,533 - Public works 4,804,428 - - Human services 1,279,314 29,221,365 -

Capital projects - - 4,728,347 Debt service:

Principal 5,499,847 1,009,362 - Interest 3,690,299 173,530 -

Total expenditures 92,118,067 38,063,790 4,728,347

Excess (deficiency) of revenues over (under) expenditures 24,065,496 (8,077,156) (4,482,087)

OTHER FINANCING SOURCES (USES) Transfers in 1,239,474 8,077,156 3,384,959 Transfers out (19,918,278) - (55,870)

Total other financing sources (uses) (18,678,804) 8,077,156 3,329,089

Net change in fund balances 5,386,692 - (1,152,998) Fund balances -- January 1 37,757,484 - 21,908,879

Fund balances -- December 31 43,144,176$ - $ 20,755,881$


Children,

FamiliesYouth and

COUNTY OF NORTHAMPTON, PENNSYLVANIAStatement of Revenues, Expenditures and Changes in Fund Balances

Governmental FundsFor the Year Ended December 31, 2018

33

Gracedale General Other TotalNursing Purpose Governmental GovernmentalHome Authority Funds Funds

- $ - $ - $ 2,574,324$ 100,947,478$ 68,331,505 70,912,663 500,000 33,061,943 203,541,573 13,746,864 - 143,190 10,144,731 39,635,022

- 474,295 6,124 119,371 2,307,394

82,078,369 71,386,958 649,314 45,900,369 346,431,467

- - 844,597 14,344,530 31,274,779 - - - 4,787,366 73,205,426 - - - 2,653,216 7,457,644

76,904,669 72,096,688 - 27,481,355 206,983,391 - - 4,381,276 - 9,109,623

1,448,221 - - 537,166 8,494,596 484,535 - - 196,880 4,545,244

78,837,425 72,096,688 5,225,873 50,000,513 341,070,703

3,240,944 (709,730) (4,576,559) (4,100,144) 5,360,764

- - 4,381,276 4,124,887 21,207,752 - - - (1,233,604) (21,207,752)

- - 4,381,276 2,891,283 -

3,240,944 (709,730) (195,283) (1,208,861) 5,360,764 2,169,693 18,607,131 1,475,334 18,107,261 100,025,782

5,410,637$ 17,897,401$ 1,280,051$ 16,898,400$ 105,386,546$

HealthChoices

34

COUNTY OF NORTHAMPTON, PENNSYLVANIAReconciliation of the Statement of Revenues, Expenditures and Changes in

Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended December 31, 2018

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

Net change in fund balances - total governmental funds 5,360,764$

Governmental funds report capital outlays as expenditures. However, in thestatement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays ($12,596,938) exceeded depreciation($10,039,576) in the current period, net of disposals. 2,557,362

Revenues in the statement of activities that do not provide current financialresources are not reported as revenues in the governmental funds. This amountis the increase in unavailable revenue. 756,322

The issuance of long-term debt (e.g., bonds, capital leases) provides current financial resources to governmental funds, while the repayment of the principal of long-termdebt consumes the current financial resources of governmental funds. Neithertransaction, however, has any effect on net position. Also, governmental fundsreport the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in thestatement of activities. This amount is the net effect of these differences in thetreatment of long-term debt and related items. 9,222,594

Some expenses reported in the statement of activities do not require the use ofcurrent financial resources and, therefore, are not reported as expenditures ingovernmental funds. (149,420)

The difference between current year pension expense reported in the statement ofactivities and the current year pension contributions reported as expenditures in the governmental funds. (5,209,966)

The difference between current year pension expense reported in the statement ofactivities and the current year pension contributions reported as expenditures in the governmental funds. (3,269,174)

Internal service funds are used by management to charge the costs of employee fringebenefits, worker's compensation and professional liability to individual funds. Thenet revenue of healthcare, vision and prescription, worker's compensation,professional liability and inmate medical internal service funds is reported withgovernmental activities. 494,371

Change in net position of governmental activities 9,762,853$


35

COUNTY OF NORTHAMPTON, PENNSYLVANIAStatement of Net Position

Proprietary FundDecember 31, 2018

GovernmentalActivities

InternalServiceFund

ASSETSCurrent assets:

Cash and cash equivalents 6,055,216$ Investments 5,804,066 Receivables:

Interest and dividends 41,762 Due from other funds 117,553 Other assets 100,000

Total assets 12,118,597

LIABILITIES Current liabilities:

Accounts payable and accrued liabilities 233,025 Accrued self-insurance claims 2,428,846

Total current liabilities 2,661,871

Noncurrent liabilities:

Accrued self-insurance claims 3,043,384

Total noncurrent liabilities 3,043,384

Total liabilities 5,705,255

NET POSITION Restricted for workers' compensation claims 3,799,298Unrestricted 2,614,044

Total net position 6,413,342$


36

COUNTY OF NORTHAMPTON, PENNSYLVANIAStatement of Revenues, Expenses and Changes in Net Position

Proprietary FundFor the Year Ended December 31, 2018

GovernmentalActivitiesInternalServiceFund

OPERATING REVENUESCharges for services 24,316,977$

Total operating revenues 24,316,977

OPERATING EXPENSES

Insurance claims and expenses 22,277,647 Administrative expenses 1,740,254

Total operating expenses 24,017,901

Operating income 299,076

NONOPERATING REVENUES (EXPENSES)

Investment earnings 209,462 Net depreciation in fair value of investments (14,167)

Total nonoperating revenues 195,295

Change in net position 494,371

Net position -- January 1 5,918,971

Net position -- December 31 6,413,342$


37

COUNTY OF NORTHAMPTON, PENNSYLVANIAStatement of Cash Flows

Proprietary FundFor the Year Ended December 31, 2018

GovernmentalActivitiesInternalServiceFund

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from benefits charges and claim reimbursemen 24,316,977$ Payments for administration expenses (1,740,254) Payments for benefits (24,036,313)

Net cash used in operating activities (1,459,590)

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sales and maturities of investments 6,363,748 Purchase of investments (4,890,000) Interest and dividends received 198,233

Net cash provided by investing activities 1,671,981

Net increase in cash and cash equivalents 212,391

Cash and cash equivalents -- January 1 5,842,825

Cash and cash equivalents -- December 31 6,055,216$

Reconciliation of operating income to netcash used in operating activities:

Operating income 299,076$ Adjustments to reconcile operating income to net cash

used in operating activities:Change in assets and liabilities:

Accounts and other payables (4,708) Due to other funds (108,842) Accrued self-insurance claims (1,645,116)

Net cash used by operating activities (1,459,590)$


38

COUNTY OF NORTHAMPTON, PENNSYLVANIAStatement of Fiduciary Net Position

Fiduciary FundsDecember 31, 2018

AgencyTrust Funds Funds

ASSETSCash and cash equivalents 2,685,417$ 9,410,965$

Receivables:Due from broker for investments sold - - Interest and dividends 6,091 - Other 220,426 16,814

Total receivables 226,517 16,814

Investments, at fair value:Equity mutual funds 279,192,687 - Corporate bonds 62,151 - Fixed income mutual funds 104,394,269 - Real estate 24,519,217 -

Total investments 408,168,324 -

Restricted assets:Cash and cash equivalents - 482,637

Total assets 411,080,258 9,910,416$

LIABILITIES Payables:

Accounts payable 7,814 7,622,403 Investment management fees payable 94,884 - Retirement refunds payable 136,928 - Deposits held in trust - 2,288,013 Accrued healthcare claims 223,000 -

Total liabilities 462,626 9,910,416$

NET POSITION,

RESTRICTED FOR PENSIONS ANDPOST-EMPLOYMENT BENEFITS 410,617,632$


39

COUNTY OF NORTHAMPTON, PENNSYLVANIAStatement of Changes in Fiduciary Net Position

Fiduciary FundsFor the Year Ended December 31, 2018

Trust Funds

ADDITIONSContributions:

Charges for services 12,298$ Plan members 5,627,098 Employer share of military

buyback by employees 22,963 Employer contributions 13,466,977

Total contributions 19,129,336

Investment earnings:Interest and dividend income 8,745,077 Net decrease in fair

value of investments (30,884,631)

Total investment earnings (22,139,554) Less investment expense (368,435)

Net investment earnings (22,507,989)

Total additions (3,378,653)

DEDUCTIONSRetirees' health benefit payments 4,144,841 Benefit payments 25,722,986 Refund of contributions 1,274,795 Administrative expenses 48,605

Total deductions 31,191,227

Change in net position (34,569,880) Net position - January 1 445,187,512

Net position - December 31 410,617,632$


40

Notes to the Financial Statements

41

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The major accounting principles and practices followed by the County of Northampton (County) are presented below to assist the reader in understanding the financial statements and the accompanying notes. The accounting principles and practices and the format of the financial statements for entity-wide and all funds are presented in accordance with accounting principles generally accepted in the United States of America as applicable to governmental units.

Reporting Entity

The financial statements include all funds of the County as well as those separately administered organizations the County has determined to be includable in its financial reporting entity. The criteria used in determining whether such organizations should be included in the County's financial reporting entity are financial accountability and the nature and significance of the relationship. In determining financial accountability for separately administered organizations for which County officials appoint board members, the County considers its ability to impose its will upon an entity such that it may significantly influence the programs, projects or activities of, or the level of services performed or provided by, the organization. The County also considers the potential for the separately administered organization to provide financial benefits to, or impose financial burdens on, the County. Such benefit or burden exists if the County is entitled to the organization's resources, is obligated to finance deficits or provide support to the organization or is obligated in some manner for the debt of the organization.

Effective January 1, 2017, the Northampton County General Purpose Authority (NCGPA) a legally separate component unit became a blended component unit of the County concurrent with the NCGPA’s execution of a public private partnership agreement to rebuild or refurbish thirty-three bridges within the County (P3 Bridge Project Note #16). The terms of the P3 Service Agreement require, among other matters, the County to fund substantially all P3 Bridge Project costs including construction, engineering oversight, project management and related professional fees. Whereas the County has pledged appropriations as the primary source of payment of the project, the County is required to use the blending method of accounting for the NCGPA pursuant to GASB statement No. 14, as amended.

The Northampton County General Purpose Authority was created on May 6, 1999, pursuant to the Municipal Authorities Act of 1945 of the Commonwealth of Pennsylvania. The initial term of the Authority is fifty years and for such further periods as authorized and permitted by provisions of the Authority Act.

The County participates in two joint ventures with other governmental entities. Based upon the foregoing criteria, the County has determined that the following joint ventures should not be included in its financial reporting entity. Although the County does not have an equity interest in these joint ventures, it does have an ongoing financial responsibility to subsidize the operations of these authorities:

Lehigh and Northampton Airport Authority Lehigh and Northampton Transportation Authority

Condensed financial information relative to these entities is included near the end of Note #1.

The County has determined that the following related and jointly governed organizations, based on the same criteria described above, are not includable in the County's financial reporting entity. Although County officials are responsible for appointing members to the boards of these organizations, the County's accountability for these organizations does not extend beyond making these appointments:

Northampton County Gaming Revenue and Economic Redevelopment Authority Northampton County Housing Authority Northampton County Higher Education Authority Northampton County Industrial Development Authority Private Industry Council of Lehigh Valley, Inc. Lehigh Valley Planning Commission Lehigh Valley Economic Development Corporation

(Continued)

42

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Reporting Entity, Continued

The Authorities, Corporations and Commission operating and capital expenditures listed on the previous page, including debt service, are financed principally from federal grants, rental charges and/or loan repayments. The County has no control over the determination of these entities' budgets, rental rates and loan repayment terms. In addition, the County has no legal liability for the activities of any of these entities. In 2018 the County appropriated an operating grant of $550,000 to the Lehigh Valley Planning Commission.

Measurement Focus and Basis of Accounting

The basic financial statements of the County are composed of the following:

Government-wide financial statements Fund financial statements Notes to the financial statements

The blending method of accounting for component units requires the County to report the NCGPA assets, liabilities, fund balance, revenues & expenditures as if it were part of the primary government. Accordingly, the financial position and activities of the NCGPA are shown as a separate fund in the governmental funds’ financial statements and consolidated with governmental activities in the government-wide financial statements. 1. Government-wide Financial Statements

Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include a separate column for the governmental activities. For the most part, the effect of interfund activity has been removed from these statements but interfund services provided and used are not eliminated in the consolidation process.

Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and retirement trust funds. Agency fund financial statements are reported using the accrual basis of accounting but they do not have a measurement focus. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of Governmental Accounting Standards Board (GASB) Statement 33 – Accounting and Financial Reporting for Nonexchange Transactions.

Program revenues include charges for services, special assessments, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as expenditures.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. The County chooses to eliminate the indirect costs between governmental activities to avoid a “doubling up” effect. Interfund services provided and used are not eliminated in the consolidation process.

(Continued)

43


Measurement Focus and Basis of Accounting, Continued

2. Fund Financial Statements

The underlying accounting system of the County is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and non-major funds in the aggregate for governmental funds. The proprietary statements report the activity of the County internal service fund. The fiduciary statements include financial information for the Retirement Trust Fund, Retiree Healthcare (other-post employment) Trust Fund and agency funds. The agency funds of the County primarily represent assets held by the County in a custodial capacity for other individuals or governments.

When both restricted and unrestricted resources are combined in a fund, expenses are considered paid first from restricted resources, and then from unrestricted resources.

Governmental Funds

Governmental funds are those through which most governmental functions of the County are financed. The acquisition, use, and balances of the County's expendable financial resources and the related liabilities are accounted for through governmental funds. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues, except intergovernmental, are considered to be available if they are collected within 60 days of the end of the current period or soon enough thereafter to pay liabilities of the current period. The County considers intergovernmental revenue available if it is collected within 90 days of the end of the current fiscal period. Licenses, operating and capital grants, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable only when the County receives cash. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental funds operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

(Continued)

44



Proprietary Funds

The County’s Internal Service fund is a proprietary fund. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.

Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as expenditures. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liabilities, rather than an expense.

Fiduciary Funds

The County’s fiduciary funds consist of the retirement and retiree healthcare (post-employment benefit) trust funds, and agency funds. In the fund financial statements, fiduciary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, the retirement and retiree healthcare trust funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on the statement of fiduciary net position. The retirement and retiree healthcare trust funds have an operating statement that presents additions (revenues) and deductions (expenses) in total net position. Agency funds present only a statement of fiduciary net position and have no measurement focus.

Basis of Presentation

The determination of major funds is based on minimum criteria as set forth in GASB Statement Number 34. The non-major funds are combined in a column in the fund financial statements. The following are the County’s major funds:

Governmental Fund Types

1) General Fund—is used to account for all financial resources except those that are required to be accounted for in another fund. Revenues of this fund are primarily derived from real estate taxes, federal and state grants, and fees for services. Many of the basic activities of the County are accounted for in this fund, including operation of general County government, boards, commissions, the court system, and health and welfare activities.

2) Children, Youth and Families Fund—is used to account for the proceeds of specific revenue sources related to the provision of children and youth services that are restricted to expenditures for those specific purposes.

3) Gracedale Nursing Home Fund—is used to account for the proceeds of specific revenue sources, primarily from federal and state governments, third party insurance and patient pay related to the provision of services at the County’s long-term care nursing facility.

4) HealthChoices Fund—is used to account for the proceeds of specific revenue sources, primarily from federal and state governments, related to the provision of managed care services programs (including mental health and mental retardation) that are restricted to expenditures for those specified purposes.

(Continued)

45



5) Northampton County General Purpose Authority (NCGPA)–is financially accountable to the County of Northampton and was formed to finance public and private development through issuance of both taxable and tax exempt debt. Current operations involve administration of the Northampton County Loan and Development Fund and the Public Private Partnership Bridge Project. (Note #16)

6) Capital Projects Fund—is used to account for the proceeds of specific revenue sources, primarily from bond issue proceeds that are restricted to expenditures for capital construction and funds internally committed for capital improvements.

Other Fund Types

1) Internal Service Fund—is used to account for the financing of the County’s self-insurance activities that are being incurred by the County for all departments and agencies.

2) Retirement Trust Fund—is used to account for the revenue (i.e., member contributions, County appropriations, and net investment income) and the expenditures (i.e., allowance contributions refunded, retirement allowances, and death benefits paid) of the County’s retirement system.

3) Retiree Healthcare Post-employment Trust Fund—is used to account for the revenue (i.e., member contributions, County appropriations, and net investment income) and the expenditures (i.e., healthcare costs) for the County’s retiree healthcare system.

4) Agency Funds—consist of restricted assets of the various offices of the County. The funds, in essence, are escrow funds maintained with various offices for bail posted, funds held from sheriff’s sales, realty transfer taxes held and owed to other governmental entities, funds held for Gracedale patients and prison inmates, gaming authority, and other funds reserved for disposition of legal actions.

Budgetary Data

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

1) Prior to October 3, the Executive submits to Council a proposed operating budget for the following calendar year. The operating budget includes proposed expenditures and the means of financing them for the general and special revenue funds.

2) The County budgets the capital projects funds over the life of the project in lieu of an annual budget. Consequently, a budget to actual comparison for the capital projects funds is not presented because such a statement would not be meaningful.

3) Public hearings are conducted at the Northampton County Government Center to obtain taxpayer comments.

4) Prior to December 17, the budget is legally enacted through passage of a resolution. If Council fails to adopt the budget by this date, the budget submitted by the Executive shall be deemed adopted for the succeeding year, until such time as the Council shall adopt a budget for the remainder of that year.

5) Council maintains legal budgetary control at the departmental level and approves transfers between departments, whether between funds or within a fund, or revisions which alter the total revenues and expenditures of any fund. The Executive is authorized to transfer within departments, whether between funds or within a fund, subject to restrictions imposed by federal and state programs that dictate the appropriation of certain intergovernmental revenues. Budgetary information as amended by the approval process is presented in the combined operating statements at the program level.

6) Budgetary data is maintained in the County's accounting system and is employed as a management control device during the year for the general and special revenue funds. (Continued)

46


Budgetary Data, Continued

7) Budgets for the general and special revenue funds are adopted on the modified accrual basis of accounting, which basis is consistent with accounting principles generally accepted in the United States of America.

The budgeted fund balance at the beginning of the year represents that portion of the actual beginning fund balance needed to finance the excess of current year appropriations over budgeted revenues.

Unexpended appropriations lapse at the end of the year, except for originally budgeted capital appropriations, which continue until expended (maximum of three years). An appropriation for a capital project shall continue in force until the purpose for which it was made has been accomplished or abandoned.

The receipt of additional intergovernmental revenues required supplemental appropriations of approximately $7.1 million in 2018. Appropriations of budgeted beginning fund balances in excess of amounts estimated in the budget were not required in 2018.

The NCGPA Fund did not adopt a budget for 2018. The PA Municipal Authorities Act does not require that a budget be adopted. Accordingly, the NCGPA is not required to present budgetary comparison information.

Interfund Transactions

The County relies on a variety of transactions between the funds to finance operations. Accordingly, to the extent that certain interfund transactions have not been paid or received as of December 31, 2018, appropriate interfund receivables or payables have been established at the fund level.

Restricted Assets

Restricted assets represent resources set aside for liquidation of specific obligations, as detailed in Note #3.

Capital Assets

Capital assets, which include property, plant, equipment, intangible assets and infrastructure assets, are reported in the governmental activities columns in the government-wide financial statements and in the proprietary fund financial statements. The County defines capital assets as assets with an initial, individual cost of at least $5,000 ($100,000 for infrastructure assets) and an estimated useful life exceeding one year. Such assets are recorded at historical costs. Donated or gifted capital assets are recorded at the estimated fair market value at the time of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

The capital assets of the County are depreciated using the straight-line method over the following estimated useful lives:

Land Improvements 10 – 15 Years Buildings and Improvements 10 – 50 Years Machinery and Equipment 8 – 20 Years Motor Vehicles 3 – 5 Years Computer Hardware and Software 3 – 5 Years Infrastructure 20 – 50 Years

Cash and Cash Equivalents

The County considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents for the purpose of reporting cash flows.

(Continued)

47


Investments

Investments are reported at fair value in all funds. Fair value is the amount that can reasonably be expected to be received for an investment in a current sale between a willing buyer and a willing seller, that is, other than in a forced or liquidation sale.

Self-Insurance Program

As of December 31, 2018, the County was fully or partially self-insured for workers' compensation, employee healthcare, vision and prescription, auto collision, professional liability, and prison inmate health care coverage. At December 31, 2018, the County carried excess loss insurance with various limits as more fully discussed in Note #12. The governmental funds are charged based on historical loss patterns. The County funds reported loss claims and claims incurred but not reported based upon the evaluation of independent actuaries and historical claims experience. The liability for accrued self-insurance claims represents an estimate of the eventual loss on claims arising prior to year-end including claims incurred and not yet reported. The County maintains the integrity of funds so provided, together with earnings thereon, in the self-insurance internal service fund solely for purposes of liquidating claims incurred. The fund balance is designated for future catastrophic losses. See Note #12 for additional details related to self-insurance.

Accounts Payable and Accrued Liabilities

The aggregate balance on the Statement of Net Position for Governmental Activities is made up of the following:

Accounts payable due to vendors 15,743,973$ Accrued payroll 5,304,095 Accrued interest payable 1,084,096

22,132,164$

Compensated Absences

Non-union and union employees accrue vacation at a rate of between 10 and 30 days per year, dependent upon their union contract and their length of service. Non-nursing home employees can accrue vacation up to a maximum of two times their annual vacation entitlement. Nursing home union employees must take their vacation within 12 months. If such unused vacation is not taken within that 12 month period, dependent upon the union contract, the unused vacation is either lost, converted to a maximum of 5 days pay or, with permission, rolled forward for another 12 month period.

All full time employees are entitled to sick leave benefits accruing at rates between 0.833 days and 1.25 days per month depending on their bargaining unit. Employees will only be paid for sick leave when adequate proof of illness has been demonstrated. Upon retirement or voluntary resignation, correction officer union employees will be reimbursed for varying rates of unused accumulated sick leave. Alternately, upon retirement, non-union and the remaining union employees will be reimbursed for varying rates of unused accumulated sick leave up to a calculated percentage of their annual salary. Employees who are classified as non-exempt under the Federal Fair Labor Standards Act (FLSA) are entitled to earn varying amounts of time off in lieu of paid overtime (compensatory time). This accumulated time, if not used, is paid to the employee upon termination or retirement. The County has accounted for accrued vacation benefits, unpaid personal holiday time and unpaid compensatory time for all employees in the government-wide financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The County has also recorded a liability, in the government-wide financial statements for accumulated sick leave benefits for all employees, using the vesting method. This liability is liquidated by employee charges to payroll in the general or a special revenue fund.

(Continued)

48


Compensated Absences, Continued

The aggregate balance of compensated absences on the Statement of Net Position for Governmental Activities is made up of the following:

Accrued vacation liability 3,716,395$ Accrued personal holiday liability 209,843 Accrued sick benefit liability 3,287,061 Accrued comp time liability 360,454

7,573,753$

Unearned Revenues

A liability for resources obtained prior to revenue recognition. The unearned revenues will be recognized as revenue in the year they are earned in accordance with the accrual basis of accounting.

Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Deferred inflows of resources reported in the governmental fund financial statements represent revenues that are measurable but not available and, in accordance with the modified accrual basis of accounting, are reported as deferred inflows of resources. The County deems revenues received within 90 days of year-end to be available with the exception of property taxes, which must be received within 60 days of year-end to be deemed available.

Accounting Estimates

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

Adoption of Governmental Accounting Standards Board (GASB) Statements

The County has adopted in reporting year 2018 the provisions of GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pension Plans” The statement requires the County to report the other post-employment benefits (OPEB) liability and expense, as well as the related deferred inflows and outflows of resources. The December 31, 2018 balance of the net OPEB liability and related deferred inflows of resources are reported in the Statement of Net Position.

The adoption of these pronouncements requires the restatement of the January 1, 2018 net position of the governmental activities as follows.

Net Position, January 1, as previously reported $123,258,479

Cumulative Effect of GASB 75, Net OPEB Liability ($53,004,859)

Net Position, January 1, 2018, as restated $70,253,620

(Continued)

49


Adoption of Governmental Accounting Standards Board (GASB) Statements, Continued

The County will adopt in reporting year 2019 the provisions of GASB Statement No. 84, “Fiduciary Activities”.

The County has adopted in reporting year 2018, with no impact, the provisions of GASB Statement No. 85, “Omnibus”.

The County will adopt in reporting year 2020 the provisions of GASB Statement No. 87, “Leases”.

The County will adopt in reporting year 2019 the provisions of GASB Statement No. 88, “Certain Disclosures Related to Debt”.

The County will adopt in reporting year 2020 the provisions of GASB Statement No. 89, “Interest Cost Incurred before the End of a Construction Period”.

The County will adopt in reporting year 2019 the provisions of GASB Statement No. 90, “Majority Equity Interests”.

As of December 31, 2018 the County has not determined the effect of the pending pronouncements.

Joint Ventures

The County participates in certain joint ventures with the County of Lehigh, Pennsylvania, in the operation of several authorities that are each a body corporate and politic organized pursuant to the Pennsylvania Municipalities Act of 1945, as amended and supplemented. The nature and function of each of these authorities are described below:

Lehigh and Northampton Airport Authority:

Governing Board—The authority is governed by 19 board members; 9 are appointed by the Executive and approved by Council, and 10 are appointed by Lehigh County.

Function—Owns and operates the Lehigh Valley International Airport.

Financing—The airport facility was acquired principally through proceeds of Airport Capital Improvement Bonds, Series of 1973, 1993, and 2000, and federal grants. Operations of the Lehigh and Northampton Airport Authority are financed through airport revenues (principally carrier fees).

Financial Reporting Relationship with County—Northampton and Lehigh counties last commitment was to pay the 1993 Lehigh-Northampton Airport Authority Airport Revenue Bonds. Payments were made from 1993 through 1998. There are no commitments to the Authority in 2018 or in the foreseeable future.

Lehigh and Northampton Transportation Authority:

Governing Board—The Authority is governed by 10 board members; 5 are appointed by the Executive and approved by Council, and 5 are appointed by Lehigh County.

Function—Owns and operates a bus transportation system in Northampton and Lehigh Counties.

Financing—Substantially all of the transit system was acquired with capital improvement grants from the federal and state governments. Operations are financed through state grants, passenger fares and county grants. Northampton and Lehigh Counties contribute the local share of the funding necessary to purchase new equipment.

Financial reporting relationship with County—In 2018, Northampton County paid $523,701 in county grants. Such amount is included in the accompanying financial statements in the General Fund. The Lehigh and Northampton Transportation Authority (LANTA) requests annual contributions in the form of grants to supplement state grants and passenger fares. Funding requests are considered on an annual basis and historically contain additional grant requests for capital equipment.

Selected condensed audited financial information, obtained from the most recent published reports of the Lehigh and Northampton Airport Authority and Lehigh and Northampton Transportation Authority, is presented on the next page. (Continued)

50


Joint Ventures, Continued

AirportAuthority Authority

Assets:Current assets 18,036,033$ 12,720,600$ Noncurrent assets 3,965,458 14,822,650 Capital assets, net 237,069,387 38,085,494

Total assets 259,070,878 65,628,744

Deferred Outflow 1,111,843 3,309,567

Current liabilities 13,646,112 12,085,220 Non-current liabilities 45,705,588 31,180,834

Total liabilities 59,351,700 43,266,054

Deferred Inflow 256,345 171,986

Net position:Net investment in capital assets 189,423,358 38,085,494 Restricted 3,752,222 - Unrestricted (deficit) 7,399,096 (12,585,223)

Total net position 200,574,676$ 25,500,271$

CONDENSED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

Operating revenues 30,667,629$ 12,827,816$ Operating expenses (31,944,694) (41,359,074)

Operating loss (1,277,065) (28,531,258)

Non-operating revenues (expenses) (933,781) 23,949,527

Loss before capital contributions (2,210,846) (4,581,731)

Capital contributions 6,233,295 13,016,240

Change in net position 4,022,449 8,434,509 Beginning net position 196,552,227 17,065,762

Ending net position 200,574,676$ 25,500,271$

CONDENSED STATEMENT OF CASH FLOWSNet cash provided by (used in):

Operating activities 8,737,139$ (21,882,008)$ Noncapital financing activities - 22,543,340 Capital and related financing activities (9,948,484) 4,090,228 Investing activities 86,125 (13,349)

Net increase (1,125,220) 4,738,211 Beginning cash and cash equivalents 18,072,421 1,662,616

Ending cash and cash equivalents 16,947,201$ 6,400,827$

Liabilities:

CONDENSED STATEMENT OF NET POSITION

Transportation

June 30, 2018December 31, 2017Audited Audited

51

(Continued)


Net Position

The government-wide statement of net position reports $80 million of total net position, of which $41.6 million is restricted by external resource providers or enabling legislation.

Fund Balance

The County follows GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions” which provides defined fund balance categories to make the nature and extent of the constraints placed upon a government’s fund balance more transparent. On November 18, 2010 Council passed ordinance #526 which established the County’s fund balance policy. Fund balances of the governmental funds are classified as follows:

Non-Spendable – Amounts that cannot be spent because of their form or because they are legally or contractually required to be maintained intact. Restricted – Amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. Committed – Amounts that can be used only for specific purposes determined by a formal action of County Council. County Council is the highest decision making authority of the County. Commitments may be established, modified or rescinded only through ordinances approved by County Council. Assigned – Amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purpose. Ordinance #526 established criteria for when funds are to be considered assigned. Assigned fund balance shall reflect the Director of Fiscal Affairs intended use of resources as set forth in the annual budget and any amendments thereto.

Unassigned – Unassigned fund balance is the residual classification and represents fund balance that has not been restricted, committed or assigned to specific purpose. Ordinance #526 requires that, if after the annual audit, prior committed or assigned fund balances causes the unassigned fund balance to fall below 5% of general fund balance budgeted operating expenditures, including transfers out, the Director of Fiscal Affairs will so advise Council in order for the necessary action to be taken in order to restore the unassigned fund balance to 5% of general fund budgeted operating expenditures, including transfers out. The County Executive will prepare and submit a plan for committed and/or assigned and/or revenue increases to Council. The County shall take action necessary to restore the unassigned fund balance to acceptable levels within two years.

Financial Reserve Fund

Ordinance #526 also established a financial reserve fund. The use (appropriation) of the financial reserve fund will be considered in conjunction with the annual budget adoption process, or through a budget amendment approved by Council ordinance during the year. The financial reserve has been set at $17 million for 2018. The financial reserve is reported in the unassigned fund balance as Ordinance #526 does not meet the requirements to reflect the reserved funds as committed.

(Continued)

52


Fund Balance Flow Assumptions

The County uses restricted amounts first when both restricted and unrestricted fund balances are available unless there are legal documents or contracts that prohibit doing this, such as in grant agreements requiring dollar-for-dollar spending. Additionally, the County would first use committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Hugh Moore Trust

In 1973, the County received an endowment from Hugh Moore for the creation of the Louise W. Moore Park. The trust agreement allows the reimbursement of park expenditures up to the trust’s net realized income. For 2018, the calculated amount of $116,562 is recorded as a payable to the General Fund. The transfer will occur in 2018. The trust is included in the combining statements of the non-major governmental funds.

NOTE 2—DEPOSIT AND INVESTMENT RISK

As of December 31, 2018 the County had the following debt investments and maturities within its operating fund accounts.

Fair Less MoreInvestment Type Value Than 1 1-5 6-10 Than 10

U.S. Government treasuries 85,479$ - $ - $ 52,665$ 32,814$ U.S. Government agencies 144,499 - - 27,257 117,242 Municipal bonds 969,727 209,727 600,000 - 160,000 Corporate bonds 26,659,044 21,452,948 5,206,096 - -

Total 27,858,749$ 21,662,675$ 5,806,096$ 79,922$ 310,056$

Investment Maturities (in Years)

As of December 31, 2018, the County had the following debt investments and maturities within its retirement plan accounts:

Fair Less MoreInvestment Type Value Than 1 1-5 6-10 Than 10

Corporate bonds 62,151$ - - 62,151$ -

Investment Maturities (in Years)

(Continued)

53

NOTE 2—DEPOSIT AND INVESTMENT RISK, CONTINUED

Interest Rate Risk — As a means of limiting its exposure to fair value losses arising from rising interest rates, the County’s investment policy is to invest funds to meet the projected cash flow requirements. Investments of the General Fund, special revenue funds and Self-Insurance Internal Service Fund are made at the discretion of the County Executive as long as such investments are made at financial institutions approved by County Council and are fully collateralized by securities with a fair value equal to or exceeding the cost of the investment. The Hugh Moore Permanent Fund investment policy follows the Retirement Plan Investment Policy that is detailed below. Investments must be made in accordance with the Commonwealth of Pennsylvania’s Act 72 and the financial institution must be on Council’s list of approved depositories.

The County’s Retirement Plan Investment Policy states that emphasis shall be placed on providing adequate and timely investment cash flow to permit benefit payments from the Retirement Plan when due. Fixed income investment allocation is targeted between 10 and 50% of the portfolio. The investment portfolio is reviewed quarterly and may be adjusted to meet economic and/or investment market conditions and allocation objectives. The effective duration of fixed income securities shall be no more than 25 percent greater or less than the effective duration of the Barclay Aggregate index.

The County’s Retiree Healthcare Trust Fund Investment Policy states that emphasis shall be placed on providing adequate and timely investment cash flow to permit medical insurance benefit payments to retirees when due. Fixed income investment allocation is targeted between 5 and 45% of the portfolio. The investment portfolio is reviewed quarterly and may be adjusted to meet economic and/or investment market conditions and allocation objectives. The effective duration of fixed income securities shall be no more than 25 percent greater or less than the effective duration of the Barclay Aggregate index.

Credit Risk — The County’s investment policy limits operating and self-insurance investments in federal agency securities that carry direct or implied guarantees of the U.S. Government. The Hugh Moore Permanent Fund investment policy follows the Retirement Plan Investment Policy that is detailed above.

(Continued)

54


The County categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy sets out a fair value hierarchy with the highest priority being quoted prices in active markets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurement). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Fair value measurements will be classified and disclosed in one of the following three categories:

Level 1 - Quoted market prices in active markets for identical assets or liabilities.

Level 2 - Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3 - Unobservable inputs that are not corroborated by market data.

The following tables present the balances of fair value measurements on a recurring basis by level within the hierarchy as of December 31, 2018.

Investments Measured at Fair Value Quoted Prices inFor Governmental Activities Active Markets Significat Other

for Identical ObservableAssets Inputs

12/31/2018 (Level 1) (Level 2)Investments by fair value levelDebt securities

U.S. treasuries 85,479$ 85,479 U.S. agencies 144,499 - 144,499 Municipal bonds 969,727 - 969,727 Corporate bonds 26,659,044 - 26,659,044

Total debt securities 27,858,749 85,479 27,773,270 Equity securities

Consumer 207,217 207,217 - Energy 31,571 31,571 - Financials 248,916 248,916 - Health Care 111,954 111,954 - Industrials 80,039 80,039 - Information Technology 192,658 192,658 - Materials 16,029 16,029 - Real Estate 10,189 10,189 - Telecommunications 54,768 54,768 -

Total equity securities 953,341 953,341 - Mutual funds

Fixed income mutual funds 224,673 224,673 - Total mutual funds 224,673 224,673 -

Total investments by fair value level 29,036,763$ 1,263,493 27,773,270

(Continued)

55


Investments Measured at Fair Value Quoted Prices inFor Fiduciary Activities Active Markets Significat Other Significant

for Identical Observable UnobservableAssets Inputs Inputs

12/31/2018 (Level 1) (Level 2) (Level 3)Investments by fair value levelDebt securities

Corporate bonds 62,151$ 62,151 - - Total debt securities 62,151 62,151 - -

Mutual fundsEquity mutual funds 279,192,687 279,192,687 Fixed income mutual funds 104,394,269 104,394,269

Total mutual funds 383,586,956 383,586,956 - - Total investments by fair value level 383,649,107$ 383,649,107$ - $ - $

Redemption RedemptionUnfunded Frequency (if Notice

Investments measured at the net asset value (NAV) Commitments Currently Available) PeriodReal estate funds (1) 24,519,217 N/A Quarterly / Monthly N/A

Total investments measured at fair value 408,168,324$

(1) Real estate funds. This type includes two open-ended, commingled real estate funds that invest primarily in core U.S. commercial real estate. The fair values of the investments in this type have been determined using the NAV per share (or its equivalent) of the Pension and OPEB Plans’ ownership interest in each respective commingled real estate fund. The funds are valued on either a monthly or quarterly basis, with the valuation reflecting the underlying real estate and cash interests of each fund, net of any debt at the fund and/or property level. Since the funds are open-ended, contributions and redemptions can be made by investors on each fund valuation date (either quarterly or monthly, depending on the fund), subject to any investment queues. In the event fund investment queues exist for contributions and/or redemptions, the investors’ desired contribution or redemption amounts will be honored at the discretion of each fund, only after the contributions or redemptions of investors with an earlier place in such queues are called or satisfied, respectively.

Debt and equity securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

(Continued)

56


As of December 31, 2018 the County’s operating investments had credit quality ratings as follows:

Credit QualityInvestment Type Rating

U.S. Government treasuries Aaa 100%U.S. Government agencies Aaa 100%Municipal bonds Aa2 38%Municipal bonds A2 62%Corporate bonds Aa1 100%

Percent ofInvestment Type

The County’s Retirement and Retiree Healthcare investment policies limit fixed income securities to a minimum of “Baa” or better at the time of purchase. At no time should securities rated Baa exceed 20% of the portfolio. The average quality of fixed income securities purchased shall equal or exceed Moody’s A2 grade. No issuer, other than the U.S. Government or other federal agencies, may represent more than 5% of the total market value of the fixed income portfolio.

As of December 31, 2018 the County’s retirement investments had credit quality ratings as follows:

Credit QualityInvestment Type Rating

Corporate bonds Baa2 100%

Percent ofInvestment Type

(Continued)

57


Custodial Credit Risk — For deposits and investments, in the event of the failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All of the County’s investments, which are held by the investment’s counterparty, are in the name of the County.

The County’s holdings include $117,759,941 in uncollateralized balances, including those balances held by the pledging financial trust department or agent but not in the County’s name. Commonwealth of Pennsylvania statute requires financial institutions that hold public deposits in excess of the insured maximum by the Federal Deposit Insurance Corporation (FDIC) or other insurance to collateralize such deposits by a pledge or assignment of assets.

The Northampton County General Purpose Authority’s holdings are insured by the FDIC or collateralized with securities held by the Authority or by its agent in its name.

Concentration of Credit Risk — The County’s investment policy for pooled and self-insurance funds requires that the funds invest in U.S. Government or Federal agency securities for which there is no limit to the investment amount.

The County’s Retirement and Retiree Healthcare investment policies limit investments, other than those in U.S. Government or other federal agencies, to no more than 5% of the total market value of the fixed income portfolio. U.S. Treasury securities are unlimited as a percentage of fixed income investments at cost or market value, except that any single Treasury zero coupon issue is limited to 10% of the total market value of the fixed income portfolio. Federal Agency securities are limited to 50% of fixed income investments at market value, 25% per agency, and 10%, of the total market value of the fixed income portfolio, per any single Federal Agency issue. These policies permit the use of mutual funds to reduce the investment administrative costs.

More than 5% of the Hugh Moore Permanent trust funds are invested in the Federal National Mortgage Association, U.S. Treasury notes, Federal Home Loan Mortgage Corporation, and U.S. Treasury bonds. These investments represent 44.6%, 22.9%, 18.2%, and 14.3% of the County’s total investments, respectively.

NOTE 3—RESTRICTED ASSETS

Assets whose use is limited to a specific purpose have been classified as “restricted” in the balance sheet and are offset by a corresponding liability. Restricted assets are comprised of the following:

Fiduciary fund types:Agency funds:

Gracedale patients agency fundAmounts held by the County nursing home

in escrow for residents 482,637$

Cash and Cash Equivalents

58

NOTE 4—REAL ESTATE TAXES

The County's real estate tax is levied each January 31, based on the assessed value listed as of the prior December 31, for all real property located in the County. The County assessment board has established assessed values at approximately 50% of calculated market value.

Real estate taxes levied for 2018 are recorded as receivables, net of estimated uncollectibles. The net receivables collected during 2018 and those collections anticipated within the first sixty (60) days of 2019 are recognized as revenue in 2018. Net receivables estimated to be collectible subsequent to March 1, 2019, are reflected as deferred inflows of resources. Prior years' levies were recorded using these same principles, and remaining receivables are annually reevaluated as to collectability. The following table lists the various dates relevant to the collection of the 2018 real estate tax levy:

January 1, 2018 - Tax lien is established

May 31, 2018 - Real estate taxes must be paid on or before this due date; payments made on or before April 02, 2018 are eligible for a 2% discount; payments made after May 31, 2018 are assessed a 10% penalty.

January 31, 2019 - Real estate taxes paid after this date are considered delinquent and are assessed a one-time $15 collection fee plus interest at 9% per annum lasting until the taxes are paid or the property is sold.

The following table lists the various dates relevant to the collection of delinquent 2018 real estate taxes:

July 31, 2019 - Notices of unpaid delinquent taxes must be mailed to property owners on or before this date.

August 4, 2020 - Notices of the pending tax sale (upset sale) to force the recovery of unpaid delinquent taxes, penalties, costs and interest must be mailed by the County on or before this date.

September 14, 2020 - This is the earliest date on which the County may conduct the tax sale (upset sale) to recover unpaid delinquent taxes, penalties, costs and interest.

November 16, 2020

- This is the earliest date on which the County, at the discretion of the Court, may conduct the judicial tax sale (for parcels remaining unsold at the previous upset sale) to recover all costs incurred by the County in its attempt to collect unpaid taxes on a particular parcel (actual taxes, interest and penalties are waived); ownership of parcels remaining unsold after the judicial tax sale reverts to the repository for unsold properties.

59

NOTE 5—INTERFUND BALANCES

Interfund receivable and payable balances of each individual fund as of December 31, 2018 are as follows:

Fund Receivable Payable

Major governmental funds:

General fund 6,617,761$ 18,832,741$ Children, youth and families 5,838,312 - Capital improvements 3,338,439 30,253 Gracedale nursing home - 2,824,254 General Purpose Authority - 1,250,000 HealthChoices - 120,218

Total major governmental funds 15,794,512 23,057,466

Other governmental funds:Area agency on aging 1,079,826 - Bridges - 62,930 Community and economic development 1,110,529 - Conduit 214,361 - Developmental programs 1,231,381 - Domestic relations - 813,702 Drug and alcohol 935,175 - Emergency services - 1,151,238 Environmental protection 902,796 - Gaming - 247,398 Hotel room rental tax 860,876 - Hugh Moore trust - 116,562 Mental health 2,365,930 - Open space initiative - 1,206 Records improvement and automation 837,563 -

Total other governmental funds 9,538,437 2,393,036

Total governmental funds 25,332,949 25,450,502

Internal service fund:Self-insurance 117,553 -

Total internal service fund 117,553 -

Total interfund balances 25,450,502$ 25,450,502$

The County utilizes a pooled operating fund to enhance investment return, therefore interfund receivables and payables are recorded to recognize amounts held by the General Fund in the pooled account on behalf of other funds. In addition, the General Fund has paid expenses on behalf of other funds, therefore a corresponding interfund receivable and payable has been recorded.

(Continued)

60

NOTE 5—INTERFUND BALANCES, CONTINUED

Interfund transfers are executed as a result of the requirement for the general fund to match a portion of the expenditures or expenses of other funds. On occasion, transfers also occur between other funds. The amounts transferred for the year ended December 31, 2018 are as follows:

Major governmental funds:

General fund 1,239,474$ 19,918,278$ Children, youth and families 8,077,156 - General Purpose Authority 4,381,276 - Capital improvements 3,384,959 55,870

Total major governmental funds 17,082,865 19,974,148

Other governmental funds:Community and economic development - 42,000 Domestic relations 1,645,427 - Developmental programs 547,861 - Drug and alcohol 89,838 - Emergency services 703,491 - Environmental protection - 62,646 Gaming - 1,048,958 Mental health 291,795 - Open space initiative 846,475 - Records improvement and automation - 80,000

Total other governmental funds 4,124,887 1,233,604

Total interfund transfers 21,207,752$ 21,207,752$

Transferred FromOther Funds Other Funds

Transferred To

61

NOTE 6—CAPITAL ASSETS

Capital asset activity for the year ended December 31, 2018 was as follows:

Beginning EndingGOVERNMENTAL ACTIVITIES Balance Increases Decreases Balance

Capital assets, not being depreciated:Land 12,169,985$ - $ - $ 12,169,985$ Construction in progress 8,689,334 7,425,075 (8,391,467) 7,722,942

Total capital assets, notbeing depreciated 20,859,319 7,425,075 (8,391,467) 19,892,927

Capital assets, being depreciated:Land improvements 13,551,199 287,848 - 13,839,047 Buildings and improvements 211,494,389 2,447,402 (85,119) 213,856,672 Machinery and equipment 48,396,209 3,647,220 (1,252,677) 50,790,752 Infrastructure 17,215,966 6,642,168 - 23,858,134

Total capital assets, being

depreciated 290,657,763 13,024,638 (1,337,796) 302,344,605

Total capital assets, historical cost 311,517,082 20,449,713 (9,729,263) 322,237,532

Less accumulated depreciation for:Land improvements (7,317,547) (631,201) - (7,948,748) Buildings and improvements (96,399,169) (6,192,725) 48,840 (102,543,054) Machinery and equipment (34,182,272) (2,786,892) 1,252,677 (35,716,487) Infrastructure (5,939,512) (428,758) - (6,368,270)

Total accumulated depreciation (143,838,500) (10,039,576) 1,301,517 (152,576,559)

Total capital assets, net ofaccumulated depreciation 167,678,582$ 10,410,137$ (8,427,746)$ 169,660,973$

Depreciation expense was charged to functions or programs of the primary government as follows:

GOVERNMENTAL ACTIVITIESGeneral government 1,580,019$ Court system and corrections 3,465,829 Public works 2,036,830 Human services 2,956,898

10,039,576$

62

NOTE 7—LONG-TERM OBLIGATIONS

The County issues bonds to provide funds for the acquisition and construction of major capital facilities, to develop parks and repair and replace County bridges. Other liabilities including compensated absences, OPEB, pension and self-insurance claims are liquidated by the General, Children Youth and Families, Gracedale Nursing Home, HealthChoices and other special revenue funds. The following is a summary of changes in long-term obligations of the County for the year ended December 31, 2018.

Beginning AmountsBalance Ending Due within

(Restated) Additions Reductions Balance One Year

GOVERNMENTAL ACTIVITIESBonds payable:

General obligation bonded debt 88,390,000$ - $ (2,870,000)$ 85,520,000$ 7,155,000$

Bond premium 9,197,756 - (811,599) 8,386,157 811,599 Bond discount (1,012,993) - 83,601 (929,392) (83,601) Lease rental debt 3,980,000 - (3,980,000) - -

Total bonds payable 100,554,763 - (7,577,998) 92,976,765 7,882,998

GESA payable:GESA financing 12,536,929 - (1,644,596) 10,892,333 1,802,405

Capital lease payable:Capital lease building 14,468,731 - - 14,468,731 -

Other liabilities:Compensated absences 7,328,905 1,133,497 (888,649) 7,573,753 910,000 Net OPEB liability 53,004,859 - (1,821,523) 51,183,336 - Net pension liability 9,535,511 46,182,793 - 55,718,304 -

Self-insurance claims 7,117,346 26,492,612 (28,137,728) 5,472,230 2,428,846

Total other liabilities 76,986,621 73,808,902 (30,847,900) 119,947,623 3,338,846

Governmental activities

long-term liabilities 204,547,044$ 73,808,902$ (40,070,494)$ 238,285,452$ 13,024,249$

The following is a summary of changes in short-term portion of the long-term obligations of the County for the year ended December 31, 2018:

Beginning EndingBalance Additions Reductions Balance

GOVERNMENTAL ACTIVITIESBonds and notes payable:

General obligation bonded debt 2,870,000$ 7,155,000$ (2,870,000)$ 7,155,000$ Bond premium 811,599 811,599 (811,599) 811,599 Bond discount (83,601) (83,601) 83,601 (83,601) Lease rental debt 3,980,000 - (3,980,000) -

Total bonds and notes payable 7,577,998 7,882,998 (7,577,998) 7,882,998

GESA payable:GESA financing 1,644,596 1,802,405 (1,644,596) 1,802,405

Other liabilities:Compensated absences 935,000 910,000 (935,000) 910,000 Accrued self-insurance claims 2,388,269 25,880,168 (25,839,591) 2,428,846

Total other liabilities 3,323,269 26,790,168 (26,774,591) 3,338,846

Governmental activities short-term portion of long-term liabilities 12,545,863$ 36,475,571$ (35,997,185)$ 13,024,249$

. (Continued)

63

NOTE 7—LONG-TERM OBLIGATIONS, CONTINUED

Long-term obligations of the County are comprised of the following: Balance at December 31, 2018

General obligation bonds:

$16,115,000 2009 Serial Bonds, due in annual installments of $370,000 to $1,635,000 through November 15, 2029; interest rates vary from 2.5% to 4.375%. The funds were used to refund the remaining balance of the 1999 Serial Bond and for various County capital projects including parking deck renovations, Juvenile Justice Center expansion and reconstruction of three bridges. $5,085,000

$9,385,000 2012 Series A (Taxable) Bonds due in annual installments of $325,000 to $2,820,000 through October 1, 2020; interest rates vary from 0.981% to 2.895%. Approximately $9.2 million of the proceeds were used to reimburse the County a portion of the funds expended to terminate a 2004 swap agreement with the remainder used to pay the costs and expenses of issuing the Series A Bonds. 7,360,000

$60,745,000 2012 Series B (Tax-Exempt) Bonds due in annual installments of $1,780,000 to $7,250,000 starting October 1, 2020 through October 1, 2030; interest rates vary from 3.0% to 5.0%. The funds were used to finance the current refunding of the remaining balance of the 2001 Series General Purpose Authority County Agreement Revenue Bonds. 60,745,000

$19,640,000 2013 Serial Bonds, due in annual installments of $1,260,000 to $2,700,000 through August 15, 2023: interest rates vary from 1.0% to 5.0 %. The funds were used to finance the current refunding of the County’s General Obligation Bonds, Series 2006 and for various County capital projects. 12,330,000

GESA Financing: $19,534,814 On 6/21/2011, the County and McClure Company (a subsidiary of PPL

Energy Service Mid-Atlantic, LLC) entered into a guaranteed energy services agreement (GESA) for the purpose of installing energy saving equipment and providing other services designed to save energy for the County’s property and buildings and the Gracedale Nursing Home. The lending agreement included a fixed interest rate of 2.98% for 12 years, with the first payment due June, 2012. 10,892,333

Capital Lease: $14,468,731 On 03/28/2013, the County and Polaris Emrick Development, LP entered into a capital lease agreement to design and construct a three story office building for the purpose of consolidating all non-Gracedale human service employees into one building. Should the lease continue to the end of its 30 year term, the building will be conveyed to the County for one dollar. The cost of land on which the building is constructed is $1,219,400 with a building cost of $13,249,331.

14,468,731

Unamortized Bond Premium 8,386,157

Unamortized Bond Discount (929,392)

$118,337,829

Accumulated Compensated Absences Balance $7,573,753

Net OPEB Liability $51,183,336

Net Pension Liability $55,718,304

Accrued Self-Insurance claims $5,472,230

(Continued)

64


The County's legal debt margin at December 31, 2018 computed in accordance with the Commonwealth of Pennsylvania's Local Government Unit Debt Act of 1972, as amended, is $911,500,899 for general obligation bonds and $1,220,965,723 for revenue bonds. The general obligation bonds were issued as both taxable and tax-exempt. The tax-exempt portion is subject to federal arbitrage regulations.

The annual requirements to amortize all debt outstanding, excluding accumulated compensated absences (sick leave benefits) and accrued self-insurance claims, as of December 31, 2018, including interest payments of $27,649,971 are as follows:

Fiscal Year Total Principal Interest

2019 13,147,122$ 8,957,405$ 4,189,717$ 2020 13,257,328 9,340,334 3,916,994 2021 13,380,656 9,773,947 3,606,709 2022 13,499,516 10,333,840 3,165,676 2023 13,721,878 10,921,806 2,800,072

2024 - 2028 40,981,382 32,370,001 8,611,381 2029 - 2030 15,809,750 14,715,000 1,094,750

123,797,632$ 96,412,333$ 27,385,299$

General Obligation, Electoral Debt and GESA Payable

The debt service requirements on the capital lease to maturity are as follows:

Fiscal Year Payment

2019 14,733,403$

Total minimum lease payments 14,733,403 Less: amounts representing interest (264,672)

Present value of minimum lease payments 14,468,731$

Component Unit—Conduit Debt Obligations

Not included in the financial statements of the Northampton County General Purpose Authority (Authority) are various conduit debt obligations issued under their name. The bonds are not secured by or payable from revenues or assets of the Authority. Neither the faith and credit nor the taxing power of Northampton County is pledged to the payment of the principal of and interest on the bonds, nor is the County or Authority, in any manner, obligated to make any appropriations for payments on these bonds. The aggregate amount of the Authority’s conduit debt obligations outstanding at December 31, 2018 is $997,800,146 as per the following schedule.

(Continued)

65


Component Unit—Conduit Debt Obligations, continued

Transactions of conduit debt for the year are as follows:

January 1, December 31,Balance Issued Retired Balance

Lafayette College:Refunding Bond Series 2003 10,190,000$ - $ - $ 10,190,000$ Variable Rate College Revenue

Bonds Series 2006 11,000,000 - - 11,000,000 Revenue Bond Series A&B 2013 49,395,000 - - 49,395,000 Revenue Bonds 2008 21,150,000 - (21,150,000) - Revenue Bonds Series A & B 2010 26,290,000 - - 26,290,000 Revenue Bond Series 2017 136,050,000 - - 136,050,000 Refunding Revenue Bonds Series 2018 - 21,345,000 - 21,345,000

Morningstar Senior Housing Revenue BondSeries 2017 5,129,807 6,616,435 (3,473,392) 8,272,850

Lehigh University:Bond Series 2001 5,040,000 - (3,095,000) 1,945,000 Revenue Bond Series B 2000 15,705,000 - (890,000) 14,815,000 Higher Education Revenue Bonds

Series A and B 2006 7,210,000 - (1,705,000) 5,505,000 Higher Education Revenue Bonds

Series 2007 (CPI) 24,615,000 - - 24,615,000 Higher Education Fixed Rate Bonds

Series A of 2009 66,165,000 - - 66,165,000 Higher Education Fixed Rate Bonds

Series A of 2016 26,715,000 - - 26,715,000 Higher Education Revenue Bonds

Series B of 2017 74,950,000 - (1,180,000) 73,770,000 St Luke's Hospital:

Revenue Bond Series A,B&C of 2010 18,855,000 - (1,515,000) 17,340,000 Revenue Bond Series D of 2010 17,704,169 - (2,045,569) 15,658,600 Revenue Bond Series A & B of 2013 64,635,000 - (745,000) 63,890,000 Capital Lease Series 2014 16,833,292 - (4,294,777) 12,538,515 Capital Lease Series 2015 21,046,166 - (4,230,985) 16,815,181 Revenue Bond Series A 2016 217,845,000 - - 217,845,000 Revenue Bond Series 2017 100,000,000 - (100,000,000) - Revenue Bond Series 2018 - 150,000,000 - 150,000,000

Moravian College: Revenue Bond Series 2016 28,295,000 - (655,000) 27,640,000

964,818,434$ 177,961,435$ (144,979,723)$ 997,800,146$

66

NOTE 8—OPERATING LEASE

The County leases the West Easton Treatment Center building under a 10-year non-cancelable operating lease. The lease commenced March 1, 2012 and will terminate February 28, 2022. Lease expense was $447,124 for the year ended December 31, 2018. The future minimum lease payments are as follows:

Fiscal Year Payment

2019 447,125$ 2020 447,125 2021 447,125 2022 111,781

1,453,156$

Operating Lease - Schedule of Future Minimum Lease Payments

NOTE 9—PENSION PLAN

Plan Description

The Northampton County Employees’ Pension Plan is a single-employer defined benefit pension plan that covers all employees of the County. All employees working over 1,000 hours per year are required to enter the plan, and County elected officials have the option of enrolling in the plan. The plan is included in the financial statements of County of Northampton as a pension trust fund, and does not issue a standalone report. The benefits and refunds of the plan are recognized when due and payable in accordance with the terms of the plan. The plan provides retirement, disability and death benefits to plan members and their beneficiaries. Cost-of-living adjustments are provided at the discretion of the County Retirement Board. Pennsylvania Act 96 of 1971, as amended cited as the County Pension Law provides for the creation, maintenance and operation of the plan.

Plan Administration

Management of the Pension Plan is overseen by PFM. Per the Plan Document, the Retirement Board is comprised of not less than seven individuals. The County Executive and the President of County Council, by virtue of their positions, are automatic members. Three seats are appointed by the County Executive; typically the Director of Fiscal Affairs, one retiree and one active employee. County Council gets two additional seats on the board besides the President of Council. These individuals serve a two-year alternating term. The Retirement Board has the discretion and authority to interpret the Plan and to determine the eligibility and benefits of participants and beneficiaries pursuant to the provisions of the Plan. On all such matters, the decision of a majority of the then members of the Retirement Board shall govern and be binding upon the Employer, participants, and beneficiaries. The Retirement Board meets quarterly during the year. However, the Retirement Board need not call or hold any meeting for the purpose of rendering decisions but such decisions may be evidenced by a written document designed by the members.

Benefits Provided

Northampton County Employees Pension Plan provides retirement, disability, and death benefits. Retirement benefits for plan members are calculated as a percent of the member’s final 3-year average salary times the member’s years of service depending on class basis. Plan members with 20 years of service are eligible to retire at age 55. Plan members that have attained age 60 are eligible to retire. All plan members are eligible for disability benefits after 5 years of service if disabled while in service and unable to continue as a County employee. Disability retirement benefits are equal to 25% of final average salary at time of retirement. Death benefits for a member who dies with 10 years of service prior to retirement is the total present value of member’s retirement paid in a lump sum. A plan member who leaves County service with less than 5 years of service may withdraw his or her contributions, plus any accumulated interest.

(Continued)

67

NOTE 9—PENSION PLAN, CONTINUED

Benefits Provided, continued

On an ad hoc basis, cost-of-living adjustments to each member’s retirement allowance shall be reviewed at least once every three years subsequent to the member’s retirement date. The adjustment, should the County elect to give one, is a percentage of the change in the Consumer Price Index.

Employees Covered by Benefit Terms

At January 1, 2018, the following employees were covered by the benefits terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 1,261 Inactive Employees Entitled to but not yet Receiving Benefits 115 Active Employees 1,891

Total 3,267

Contributions

Plan members are required to contribute 5% of their salary and may contribute up to 15%. The County is required to contribute at an actuarially determined rate. Per Pennsylvania Act 96 of 1971, as amended, contribution requirements of the plan members and the County are established and may be amended by the General Assembly of the Commonwealth of Pennsylvania. Administrative costs of the plan are financed through investment earnings.

Method Used to Value Investments

Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Real estate assets are reported at fair value utilizing an income approach to valuation. By contract, an independent appraisal is obtained once every year to determine the fair market value of the real estate assets.

Investment Policy

The pension plan’s policy in regard to the allocation of invested assets is established and may be amended by the Board by a majority vote of its members. It is the policy of the Board to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes.

Net Pension Liability

The components of the net pension liability of the County for the December 31, 2018 measurement period were as follows:

Total Pension liability $429,519,507 Plan fiduciary net position (373,801,203) Net pension liability $55,718,304

Plan fiduciary net position as a percentage of the total pension liability: 87.03%

(Continued)

68


Net Pension Liability, continued

The total pension liability was determined by an actuarial valuation for the 2018 measurement period, using the following actuarial assumptions, applied to all periods included in the measurement:

Valuation date January 1, 2018 Actuarial assumptions: Inflation 3.0% Salary increases 4.5%, average, including inflation Investment rate of return 7.5%, net of pension plan investment expense

Mortality rates RP-2013 Annuitant and Non-Annuitant tables for males and females

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of 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. The target allocation and best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation for the 2018 measurement period are summarized in the following table:

Asset Class Target Allocation Long-Term Expected Real Rate of Return

Domestic equity 23 - 63% 5.4 - 6.4% International equity 2 - 42% 5.5 - 6.5% Fixed income bonds 10 - 50% 1.3 - 3.3% Real estate 0 - 25% 4.5 - 5.5% Cash 0 - 20% 0.0 - 1.0% 100%

Concentrations. As of December 31, 2018, the investments of the plan greater than 5% of the Plan’s fiduciary net position are as follows:

Description Asset Class % Net

Position PFM Multi-Manager Domestic Equity Domestic equity mutual fund 21% Vanguard Total Stock Market Index Domestic equity mutual fund 21% PFM Multi-Manager Fixed-Income Fixed income mutual fund 13% PFM Multi-Manager International Equity International equity mutual fund 11%

Discount Rate

The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and the County contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

(Continued)

69


Changes in the Net Pension Liability

Total Pension Liability

Plan Fiduciary Net Position

Net Pension Liability

Balance at 12/31/2017 $ 415,216,912 $ 405,681,401 $ 9,535,511 Changes for the Year

Service Cost 8,573,509 - 8,573,509 Interest 30,925,286 - 30,925,286 Difference Between Expected and Actual Experience 1,801,581 - 1,801,581 Contributions - Employer - 9,720,489 (9,720,489)Contributions - Employee - 5,650,061 (5,650,061)Net Investment Income - (20,209,077) 20,209,077 Benefit Payments, Including Refunds of Employee Contributions (26,997,781) (26,997,781) - Administrative Expenses - (43,890) 43,890

Net Changes 14,302,595 (31,880,198) 46,182,793 Balance at 12/31/2018 $ 429,519,507 $ 373,801,203 $ 55,718,304

Increase (Decrease)

Sensitivity of Net Pension Liability to Changes in Discount Rate

The following presents the net pension liability of the County, calculated using the discount rate of 7.5%, as well as what the County’s net pension liability would be if it were calculated using a discount rate that is 1% point lower or 1% point higher than the current rate:

1% Decrease

(6.5%)

Current Discount Rate (7.5%)

1% Increase (8.5%)

County’s net pension liability $99,290,382 $55,718,304 $23,671,424

Rate of Return on Investments

For the 2018 measurement period, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (4.97)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

(Continued)

70


Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

For the year ended December 31, 2018, the County recognized pension expense of $12,989,663. At December 31, 2018, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Description

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences Between Expected and Actual Experience 2,432,868$ -$ Net Difference Between Projected and Actual Earnings on Pension Plan Investments 25,338,056 -

Total 27,770,924$ -$

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

Year Ended December 312019 9,093,389$ 2020 3,925,234 2021 4,284,990 2022 10,431,985 2023 35,326

Payable to the Pension Plan

For the 2018 measurement period, the County had no outstanding amount of contributions to the pension plan required for the year ended December 31, 2018.

71

NOTE 10—POSTEMPLOYMENT HEALTHCARE PLAN

Plan Description

Plan administration. The retiree healthcare plan is a single-employer defined benefit other postemployment benefit (OPEB) healthcare plan administered by the County of Northampton. The plan was established on August 1, 1968 to provide postretirement healthcare benefits to qualified full-time employees and their dependents in accordance with County Council resolutions 57-79, 48-92, and 54-96.

Plan membership. At January 1, 2018, the plan membership consisted of the following:

Inactive plan members or beneficiaries currently receiving benefits 791 Inactive plan members entitled to but not yet receiving benefits 0 Active plan members 921 Total membership 1712

Benefits provided. Employees hired prior to July 1, 1979 receive healthcare benefits upon retirement if they have completed at least 20 years of service. Employees hired between July 1, 1979 and December 31, 1996 receive healthcare benefits upon retirement if they have attained the age 55 with at least 20 years of service, or age 60 with at least 8 years of service. Employees hired after December 31, 1996 receive healthcare benefits upon retirement if they have attain the age of 60 and have completed at least 25 years of service. Employees hired on or after June 30, 2010 will no longer receive healthcare benefits upon retirement. Dependent coverage ceases with the death of the retiree. The retiree healthcare plan does not issue a separate publicly available financial report.

Healthcare retirement benefits are fully funded by the employer if the employee retired prior to January 1, 1996. Prior to May 3, 2018, if the employee retired subsequent to January 1, 1996, the retiree will contribute to the cost based on the healthcare contribution plan in effect at the time of their retirement. The contribution varied from a flat rate of $10 per month to a fixed percentage from 1% to 5% of the retiree’s pension. Effective September 1, 2018, all retirees receiving medical benefits that retired after December 31, 1996, are charged a percentage of taxable pension benefit that varies based upon coverage level elected. The rates are 0% for retiree only, 3% for retiree plus one, and 5% for retiree plus family. The retiree charge for this medical insurance coverage is recognized in the retiree healthcare trust fund as a net against the benefit payments.

Contributions. The contribution requirements of plan members and the County of Northampton are established through the budget process and may be changed by budget amendments. The required County contribution is actuarially determined based on projected pay-as-you-go financing requirements, with an additional amount to prefund benefits as actuarially determined. For year 2018, the County contributed $3.7 million to the plan, including $1.9 million (approximately 51.7% of total contributions) for current costs and $1.8 million (approximately 48.3% of total contributions) to prefund benefits.

Investments Investment policy. The plan’s policy in regard to the allocation of invested assets is established and may be amended by the County of Northampton OPEB Board (OPEB Board) by a majority vote of its members. It is the policy of the OPEB Board to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes.

Asset Allocation Allocation Range Allocation Target Domestic equity 26-66% 46% International equity 4-44% 24% Fixed income 5-45% 25% Real estate 0-25% 5% Cash 0-20% 0% Total 100%

(Continued)

72

NOTE 10—POSTEMPLOYMENT HEALTHCARE PLAN, CONTINUED

Investments, continued Concentrations. As of December 31, 2018, the investments of the plan greater than 5% of the Plan’s fiduciary net position are as follows:

Description Asset Class % Net

Position PFM Multi-Manager Domestic Equity Domestic equity mutual fund 25% Vanguard Total Stock Market Index Domestic equity mutual fund 21% PFM Multi-Manager International Equity International equity mutual fund 14% PFM Multi-Manager Fixed-Income Fixed income mutual fund 11%

Rate of return. For the 2018 measurement period, the annual money-weighted rate of return on OPEB plan investments, net of OPEB plan investment expense, was -5.67%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Net OPEB Liability The components of the net OPEB liability (NOL) of the County at December 31, 2018 were as follows:

Total OPEB liability $ 87,999,765 Plan fiduciary net position (36,816,429) Net OPEB liability $ 51,183,336 Plan fiduciary net position as a percentage of the total OPEB liability 41.80%

Actuarial assumptions. The total OPEB liability (TOL) was determined by an actuarial valuation as of January 1, 2018, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Inflation 3.0 percent Salary increases 4.5 percent Investment rate of return 7.5 percent including inflation Healthcare cost trend rates 5.5 percent initial, 3.84 percent ultimate The life expectancy of all members (active and retired) is determined in accordance with the mortality rates set forth in the RP2000 mortality tables for males and females with improvement projected through 2020 for retirees and 2028 for active members. The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each 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 asset class included in the OPEB plan’s target asset allocation for the 2018 measurement period (see the discussion of the OPEB plan’s investment policy) are summarized in the following table:

Asset Allocation Long-Term Expected Real Rate of Return

Domestic equity 5.00% International equity 5.00% Fixed income 3.44% Real estate 5.30% Cash 0.00%

(Continued)

73


Net OPEB Liability, continued Changes of assumptions. In the prior valuation, all future retirees (those currently active) and existing retirees who are under the age of 65 as of the valuation date were assumed to elect the PPO health plan upon Medicare eligibility. In this year’s valuation, 40% of future and existing retirees under 65 are assumed to elect the HMO plan upon Medicare eligibility, with the remaining 60% electing the PPO plan. This change caused a decrease in the County’s liabilities. The health care trend rates have been updated from an initial rate of 5.90% decreasing to an ultimate rate of 3.94% in 2075 to an initial rate of 5.50% decreasing to an ultimate rate of 3.84% in 2075. This change caused a decrease in the County’s liabilities.

Discount rate. The discount rate used to measure the total OPEB liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that County contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB 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 OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability (i.e. no depletion date is projected to occur). Changes in the Net OPEB Liability

Total OPEB Liability

Plan Fiduciary Net Position

Net OPEB Liability

Balance at 12/31/2017 $ 92,510,970 $ 39,506,111 $ 53,004,859 Changes for the Year

Service Cost 584,139 - 584,139 Interest 6,829,512 - 6,829,512 Changes of benefit terms 5,321,038 - 5,321,038 Difference Between Expected and Actual Experience (19,175,372) - (19,175,372)

Changes of assumptions of other inputs 6,074,319 - 6,074,319 Contributions - Employer - 3,746,488 (3,746,488)Charges for services - 12,298 (12,298)Net Investment Income - (2,298,912) 2,298,912

Benefit payments (4,144,841) (4,144,841) - Administrative Expenses - (4,715) 4,715

Net Changes (4,511,205) (2,689,682) (1,821,523)Balance at 12/31/2018 $ 87,999,765 $ 36,816,429 $ 51,183,336

Increase (Decrease)

(Continued)

74


Changes in the Net OPEB Liability, continued Sensitivity of the net OPEB liability. Changes in the discount and healthcare cost trend rate affect the measurement of the TOL. Lower discount rates produce a higher TOL, and higher discount rates produce a lower TOL, whereas lower trend rates produce a lower TOL, and higher trend rates produce a higher TOL. Because the trend rates do not affect the measurement of assets, the percentage change in the NOL can be very significant for a relatively small change in the trend rates. The table below shows the sensitivity of the NOL to the discount rate and trend:

1% Decrease (6.5%)

Discount Rate Current (7.5%)

1% Increase (8.5%)

Net OPEB liability $61,877,874 $51,183,336 $42,283,225

1% Decrease (4.5% decreasing

to 2.84%)

Healthcare Cost Rates Current (5.5%

decreasing to 3.84%)

1% Increase (6.5% decreasing

to 4.84%) Net OPEB liability $40,704,419 $51,183,336 $63,903,006

OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the year ended December 31, 2018 the County recognized OPEB expense of $8,956,454. At December 31, 2018 the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Description

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences Between Expected and Actual Experience -$ (16,436,033)$

Changes of Assumptions 5,206,559 - Net Difference Between Projected and Actual Earnings on OPEB Plan Investments 4,197,985 -

Total 9,404,544$ (16,436,033)$

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

Year Ended December 312019 (822,083)$ 2020 (822,083) 2021 (822,083) 2022 (822,082) 2023 (1,871,579)

Thereafter (1,871,579)

Payable to the OPEB Plan

For the 2018 measurement period, the County had no outstanding amount of contributions to the OPEB plan required for the year ended December 31, 2018.

NOTE 11—LITIGATION

The County is involved in various actions related to construction costs, tax billings, assessment valuations, property damages and other matters. In the opinion of County officials and the County solicitor, the ultimate outcome of these actions will not have a material adverse effect on the County's financial statements.

75

NOTE 12—RISK MANAGEMENT

The County is exposed to risk of loss related to self-insurance activities for workers’ compensation, health, vision, prescription, auto collision, prison inmate health care, general liability and professional liability coverage. The self-insurance internal service fund is used to account for risk associated with professional liability, employee health care, prescription drugs, vision, and workers’ compensation. For the year ended December 31, 2018 the County carried the following insurance. The County is fully self-insured for vision insurance. Funds are charged based on historical loss patterns.

1) Medical and prescription drug coverage—The County limited its liability to $350,000 per employee and family per year.

2) Workers’ compensation—The County maintains excess loss insurance for workers’ compensation that limited its liability per accident or disease to a variable limit based upon the class of employee with a employers maximum liability limit of $1 million per occurrence and aggregate. For employees classified as Nursing and Convalescent Home and Police Officers, the per occurrence limit is $750,000 and for all other employees the per occurrence limit is $650,000.

3) Professional and general liability—There is a $10 million per occurrence limit for general liability, law enforcement, automobile and public officials liability insurance. The public official’s liability also includes the $10 million annual aggregate. The deductibles are as follows: general liability $5,000; law enforcement liability $25,000; automobile liability $5,000; and public official’s liability $50,000.

4) Prison inmate medical service—With respect to prison inmate health care, the County has an agreement with a vendor to provide medical services to inmates. Such services under the contract are limited to $15,000 per year per individual. The County retains the risk of loss for prison inmate health care in excess of $15,000 per individual.

The reserve balances are based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. The County funds reported loss claims and claims incurred but not reported for health insurance and workers’ compensation based on estimates of independent actuaries. Such claims and estimates are not discounted. All other accrued self-insurance liabilities are based on the County’s historical claim experience.

The County maintains the integrity of funds so provided, together with earnings thereon, in the self-insurance internal service fund solely for purposes of liquidating claims incurred. Net position is designated for future catastrophic losses. There have been no changes in insurance coverage, retention limits or excess loss policies from the prior year. The amounts of settlements for the past three years did not exceed excess loss insurance coverage.

All accrued self-insurance liabilities at December 31, 2018 are accounted for in the self-insurance internal service fund for active employees and the retiree healthcare trust fund for retirees. The following provides aggregate information for the current and prior year on self-insurance liabilities, incurred claims, and payments:

12/31/16 Current Prior Current Prior 12/31/17

Healthcare 1,231,000$ 14,258,548$ (27,000)$ (18,330,373)$ 4,073,825$ 1,206,000$ Workers' compensation 6,682,369 483,250 (729,953) (232,782) (291,538) 5,911,346

Totals 7,913,369$ 14,741,798$ (756,953)$ (18,563,155)$ 3,782,287$ 7,117,346$

12/31/17 Current Prior Current Prior 12/31/18

Healthcare 1,206,000$ 27,484,983$ 278,000$ (22,880,107)$ (4,420,876)$ 1,668,000$ Workers' compensation 5,911,346 838,087 (2,108,458) (516,581) (320,164) 3,804,230

Totals 7,117,346$ 28,323,070$ (1,830,458)$ (23,396,688)$ (4,741,040)$ 5,472,230$

Change inIncurred Claims Payments

76

NOTE 13—COMMITMENTS AND CONTINGENCIES

Information Technology Services

Effective January 2014, the County entered into a contract for provision of information technology services for a three-year period, with two optional one year extensions at a total cost of $10,463,732 for the five years. The contract amount paid during year 2018 was $2,385,751.

Federal and State Funding

The County receives federal and state funding under a number of programs. Payments made by these sources under contractual agreements are provisional and subject to redetermination based on the filing of reports and audits of those reports. Estimated settlements due from or to these sources are recorded in the year in which the related services are performed. Any adjustments resulting from subsequent examinations are recognized in the year in which the results of such examinations become known. County officials do not expect any significant adjustments to result from future examinations.

Unionized Employees

The County relies heavily on unionized employees. As of December 31, 2018, approximately 76% of County employees were unionized. The following chart lists the union and non-union groups.

Union Group From To

AFSCME Correction Officers 01/01/2015 - 12/31/2017 212 AFSCME Court-Appointed Non-Professionals 01/01/2014 - 12/31/2020 119 AFSCME Court-Appointed Professionals 01/01/2015 - 12/31/2018 64 AFSCME Court-Related Non-Professionals 01/01/2014 - 12/31/2020 53 AFSCME Gracedale Nursing Home 01/01/2016 - 12/31/2021 631 AFSCME Residual 01/01/2014 - 12/31/2020 203 AFSCME Youth Detention Center 01/01/2014 - 12/31/2020 54 Deputy Sheriff's Association 01/01/2014 - 12/31/2020 62 Northampton County Detective's Association 01/01/2016 - 12/31/2019 5 PSSU Human Services 01/01/2012 - 12/31/2020 162 Steelworkers Gracedale Nursing Home 01/01/2016 - 12/31/2018 47 _____

1,612

Non-Union 492 Elected 12 _____

Total 2,116 _____ _____

Contract Dates Number ofEmployees

One union contract was expired as of December 31, 2018 and is in various stages of negotiations and arbitration.

77

NOTE 14—TAX ABATEMENTS

The County of Northampton provides tax abatements under the following six programs.

Keystone Opportunity Zone (KOZ) and Keystone Opportunity Expansion Zone (KOEZ) provide tax abatements giving property owners 100% exemption from real estate taxes for 10 years, in order to foster economic opportunities, stimulate industrial, commercial and residential improvements and prevent physical and infrastructure deterioration within the designated areas, as well as creating new employment and diminishing blight. Abatements are obtained through application by the property owner each year.

LERTA (Local Economic Revitalization Tax Assistance Program) provide tax abatements for improvements to properties in deteriorated neighborhoods. Property taxes on these parcels are based on the current assessment; however, any tax increase resulting from improvements made to the property will be phased in over the course of ten years. By deferring the tax on the increased assessment, the LERTA legislation encourages owners of deteriorated property to make necessary improvements to the property.

TIF (Tax Increment Financing Act) authorizes local taxing bodies to cooperate in providing financing for public facilities and residential, commercial and industrial development and revitalization in order to eliminate or prevent the development or spread of blight within the respective jurisdictions. The taxing authority retains the base amount and the remainder is submitted to the authority managing the TIF for the period of the agreement. Usually 20 years.

Clean and Green (Pennsylvania Farmland and Forest Land Assessment Act, Act 319) is a state law, authorized by the state constitution, which allows qualifying land that is devoted to agricultural use, agricultural reserve, and forest land use, to be assessed at a value for that use rather than Fair Market Value. The intent of the program is to encourage property owners to retain their land in agricultural, open space, or forest land use, by providing some real estate tax relief.

Act 515 (County program) requires that land be designated as farm, forest, water supply, or open space, to be assessed at a value for that use rather than Fair Market Value. The intent of the program is to encourage property owners to preserve the land within the county.

Act 4 – authorizes a real estate tax millage rate freeze for eligible open space property in the County of Northampton. The following categories of real property are hereby exempted from further millage increases:

a. Real property in which the open space property interests have been acquired by a local

government unit in accordance with the Open Space Lands legislation; b. Real property that is subject to an easement acquired in accordance with the Act of June 30,

1981 known as the “Agricultural Area Security Law”; and c. Real property from which the transferable development rights (TDR’s) have been transferred

and retired by a local government unit without their development potential having occurred on other lands.

Information relevant to these programs for the year ended December 31, 2018 is:

Tax Abatement Program Amount of Taxes Abated during the Year

KOZ and KOEZ $16,208 LERTA 799,342 TIF 1,369,531 Clean and Green 1,928,011 Act 515 516,243 Act 4 2,482

78

NOTE 15—SUBSEQUENT EVENTS

The County has evaluated subsequent events through April 29, 2019. This is the date the financial statements were available to be issued. No material events subsequent to December 31, 2018, other than the following matters and the matter included in Note 16, were noted.

On February 13, 2019 the County issued $23,035,000 General Obligation Bonds, Series A of 2019. The proceeds of the bonds were used to purchase the Human Services Building as discussed below. Additionally, the remaining funds will be used for the construction of a Forensic Center.

On March 25, 2019 the County purchased the Human Services Building for $14,605,641. This purchase price was contractually determined based on a triple-net lease that had an option to purchase the building after a five year lease period.

79

NOTE 16—PUBLIC PRIVATE PARTNERSHIP (P3) PROJECT

Northampton County General Purpose Authority (NCGPA) will be administering a project to replace or refurbish 33 bridges in Northampton County as allowed under PA Act 88 of 2012. On January 17, 2017, formal documents were signed establishing a Public Private Partnership (P3) between the NCGPA and Kriger Construction, Inc. There were additional agreements signed that relate to the project, most significantly the Project Service Agreement and the Project Administration Agreement.

The P3 Project is for a period of 14 years. During the first four years of the P3 agreement the bridges will be reconstructed by Kriger Construction, Inc., who will then maintain the bridges for the next 10 years. Payments to Kriger Construction, Inc. will be $35,775,393 for construction costs and $1,706,010 for interest based on the County’s incremental borrowing rate of 2.50%. Payments for construction will be made through April 30, 2028 based on the completion of milestones established in the P3 agreement as follows:

Fiscal Year Principal Interest Total

2019 4,110,275$ 14,725 4,125,000$ 2020 3,757,737 117,263 3,875,000$ 2021 3,744,245 130,755 3,875,000$ 2022 2,416,590 170,039 2,586,629$ 2023 2,230,465 356,164 2,586,629$

2024-2028 12,016,082 917,064 12,933,146$

28,275,394$ 1,706,010$ 29,981,404$

P3 - Schedule of Future Construction Costs

As of December 31, 2018 milestone payments to Kriger Construction, Inc. exceeded work completed, based on project milestones and estimated project costs, resulting in a Deposit on Capital Asset of $691,621 on the Statement of Net Position.

The Project Administration Agreement is an agreement with the Third-Party Engineer (TPE) to act as the NCGPA’s representative with respect to the P3 Project and perform all duties and obligations and provide all services of the Third-Party Engineer as established in the P3 Agreement. This contract will run concurrently with the P3 Agreement and provides for payments to the TPE totaling approximately $480,000. Payments will be made to the TPE during the first 5 years of the contract based on a schedule established as part of the contract.

The Project Service Agreement is the agreement between Northampton County and the NCGPA that run concurrently with the P3 agreement. The contract establishes the responsibilities of both parties relating to the P3 Project. Northampton County’s responsibilities pertain primarily to transferring ownership of the bridges to the NCGPA and to provide funds to the NCGPA. The NCGPA’s responsibilities pertain primarily facilitating the work related to the P3 project and to make the payments established in the P3 and a Project Administration Agreements.

In connection with the reconstruction of certain bridges, utility relocation costs are incurred. It is estimated that these costs will total approximately $300,000 for the remainder of the project.

As of December 31, 2018, Kriger Construction, Inc. was in compliance with milestone requirements established in the P-3 contract. However, on January 30, 2019, NCGPA notified Kriger Construction, Inc. that it was in default of the P3 contract as a result of Kriger not addressing punch list items in a timely manner.

As of the date of the auditor’s report, negotiations are ongoing relating to a significant modification of the P-3 agreement. Current proposed changes primarily relate to a reduction in the scope of the project to 25 from the original 33.

80

Required Supplementary

Information

81

2014 2015 2016 2017 2018

Total Pension Liability

Service cost 9,774,779$ 9,226,084$ 9,738,163$ 9,891,849$ 8,573,509$ Interest 26,253,859 27,686,239 28,671,314 29,716,037 30,925,286Changes of Benefit Terms 4,355,919 1,397,883 - - - Differences between expected and actual experience 1,741,228 2,284,952 (1,241,226) 978,872 1,801,581Benefit payments, including refunds of member

contributions (22,466,982) (23,953,420) (24,586,787) (26,615,665) (26,997,781)

Net Change in total pension liability 19,658,803 16,641,738 12,581,464 13,971,093 14,302,595

Total pension liability - beginning 352,363,814 372,022,617 388,664,355 401,245,819 415,216,912

Total pension liability - ending (a) 372,022,617$ 388,664,355$ 401,245,819$ 415,216,912$ 429,519,507$

Plan fiduciary net position

Contributions - employer 11,818,479$ 10,728,773$ 10,552,461$ 10,379,814$ 9,720,489$ Contributions - member 5,496,537 5,154,034 5,512,253 5,570,233 5,650,061Net investment income 20,806,812 (59,736) 26,641,956 58,758,387 (20,209,077)Benefit payments, including refunds of member

contributions (22,466,982) (23,953,420) (24,586,787) (26,615,665) (26,997,781)Administrative expense (44,054) (46,234) (43,100) (43,877) (43,890)

Net change in plan fiduciary net position 15,610,792 (8,176,583) 18,076,783 48,048,892 (31,880,198)Plan fiduciary net position - beginning 332,121,517 347,732,309 339,555,726 357,632,509 405,681,401

Plan fiduciary net position - ending (b) 347,732,309$ 339,555,726$ 357,632,509$ 405,681,401$ 373,801,203$

County's net pension liability - ending (a) - (b) 24,290,308$ 49,108,629$ 43,613,310$ 9,535,511$ 55,718,304$

Plan fiduciary net position as a percentage of the total pension liability 93.47% 87.36% 89.13% 97.70% 87.03%

Covered payroll 86,640,205$ 82,941,510$ 86,542,785$ 89,156,644$ 91,133,665$

County's net pension liability as a percentage of covered payroll 28.04% 59.21% 50.40% 10.70% 61.14%

GASB No. 67, "Financial Reporting for Pension Plans - an amendment to GASB Statement No. 25", was adopted in 2014. Therefore, only 5 years of data is available.

Northampton County Employees' Retirement SystemSchedule of Changes in the County's Net

Pension Liability and Related Ratios

82

2014 2015 2016 2017 2018

Actuarially determined contributions 11,818,479$ 10,728,281$ 10,552,461$ 10,379,814$ 9,720,489$ Contributions in relation to the actuarially

determined contributions (11,818,479) (10,728,773) (10,552,461) (10,379,814) (9,720,489)

Contributions deficiency (excess) -$ (492)$ -$ -$ -$

Covered payroll 86,640,205$ 82,941,510$ 86,542,785$ 89,156,644$ 91,133,665$ Contributions as a percentage of covered-employee

payroll 13.64% 12.94% 12.19% 11.64% 10.67%

Notes to ScheduleValuation date January 1, 2014 January 1, 2015 January 1, 2016 January 1, 2017 January 1, 2018

Actuarially determined contribution rates are calculated as of January 1, one year prior to the endof the fiscal year in which contributions are reported.

Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry Age

Amortization method Level dollar

Remaining amortization period 22 years

Asset valuation method Market value adjusted for unrecognized gains and

losses from prior years

Inflation 3.0%

Salary increases 4.5% average, including inflation

Investment rate of return 7.5% net of pension plan investment expense,

including inflation

Retirement age Age 60 or 55 with 20 years' service

Mortality 2013 RP Annuitant and Non-Annuitant Mortality tables for

males and females with no projected improvement


Northampton County Employees' Retirement SystemSchedule of County Contributions

83

2014 2015 2016 2017 2018

Annual money-weighted rate of return, net of investment expense 6.73% 0.50% 8.20% 17.1%* -4.97%


* Due to a change in investment managers, the money-weighted rate of returnwas not available for 2017. Time-weighted rate of return is reported instead.

Northampton County Employees' Retirement SystemSchedule of Investment Returns

84

2017 2018

Total OPEB Liability

Service cost 562,013$ 584,139$ Interest 6,556,994 6,829,512Changes of Benefit Terms - 5,321,038 Differences between expected and actual experience - (19,175,372) Changes of assumptions - 6,074,319 Benefit payments (4,069,258) (4,144,841)

Net Change in total OPEB liability 3,049,749 (4,511,205)

Total OPEB liability - beginning 89,461,221 92,510,970

Total OPEB liability - ending (a) 92,510,970$ 87,999,765$

Plan fiduciary net position

Contributions - employer 4,893,762$ 3,746,488$ Contributions - member 347,868 - Net investment income 6,158,801 (2,298,912)Benefit payments (4,069,258) (4,144,841)Administrative expense (339,867) (4,715)Charges for services 1,217 12,298

Net change in plan fiduciary net position 6,992,523 (2,689,682)

Plan fiduciary net position - beginning 32,513,588 39,506,111

Plan fiduciary net position - ending (b) 39,506,111$ 36,816,429$

County's net OPEB liability - ending (a) - (b) 53,004,859$ 51,183,336$

Plan fiduciary net position as a percentage of the total OPEB liability 42.70% 41.80%

Covered-employee payroll 52,788,972$ 49,960,719$

County's net OPEB liability as a percentage of covered-employee payroll 100.41% 102.45%

GASB No. 74, "Financial Reporting for Postemployment Benefit Plans Other thanPension Plans", was adopted in 2017. Therefore, only 2 years of data is available.

Northampton County Postemployment Healthcare PlanSchedule of Changes in the County's Net

OPEB Liability and Related Ratios

Notes to Schedule : Changes of Benefit Terms: In the December 31, 2018 actuarial valuation, there was a change that reduced the required contribution of current retirees toward their benefits. Changes of assumptions: In the prior valuation, all future retirees (those currently active) and existing retirees who are under the age of 65 as of the valuation date were assumed to elect the PPO health plan upon Medicare eligibility. In this year’s valuation, 40% of future and existing retirees under 65 are assumed to elect the HMO plan upon Medicare eligibility, with the remaining 60% electing the PPO plan. This change caused a decrease in the County’s liabilities. In the December 31, 2018 actuarial valuation the health care trend rates have been updated from an initial rate of 5.90% decreasing to an ultimate rate of 3.94% in 2075 to an initial rate of 5.50% decreasing to an ultimate rate of 3.84% in 2075. This change caused a decrease in the County’s liabilities.

85

2009 2010 2011 2012 2013

Actuarially determined contributions 6,225,612$ 5,809,254$ 5,809,254$ 5,600,530$ 5,606,797$ Contributions in relation to the actuariallydetermined contributions (6,225,612) (5,809,254) (5,809,254) (5,600,530) (5,606,797)

Contributions deficiency (excess) -$ -$ -$ -$ -$

2014 2015 2016 2017 2018

Actuarially determined contributions 5,664,770$ 5,655,046$ 4,848,135$ 4,893,762$ 3,746,488$ Contributions in relation to the actuarially

determined contributions (5,664,770) (5,655,046) (4,848,135) (4,893,762) (3,746,488)

Contributions deficiency (excess) -$ -$ -$ -$ -$

Methods and assumptions used to determine contribution rates:

Actuarial cost method Projected Unit Credit

Amortization method Level dollar

Remaining amortization period 30 years

Asset valuation method Market value adjusted for unrecognized gains and losses from prior years

Inflation 2.3%

Salary increases N/A

Investment rate of return 7.5% net of pension plan investment expense, including inflation

Healthcare cost trend rates 5.9% initial decreasing to an ultimate rate of 3.94%

Retirement age Age 60 or 55 with 20 years' service

Mortality

Northampton County Postemployment Healthcare PlanSchedule of County Contributions

RP2000 mortality tables for males and females with improvement projected through 2020 for retirees and 2028 for active members

Actuarially determined contribution rates are calculated biannually as of January 1, with the most recent valuation completed as of January 1, 2018

86

2017 2018

Annual money-weighted rate of return, net of investment expense 19.14%* -5.67%

GASB No. 74, "Financial Reporting for Postemployment Benefit Plans Other thanPension Plans", was adopted in 2017. Therefore, only 2 years of data is available.

* Due to a change in investment managers, the money-weighted rate of returnwas not available for 2017. Time-weighted rate of return is reported instead.

Northampton County Postemployment Healthcare PlanSchedule of Investment Returns

87

Required Supplementary InformationCOUNTY OF NORTHAMPTON, PENNSYLVANIA

Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and ActualGeneral Fund

For the Year Ended December 31, 2018Variance withFinal Budget -

Budgeted Amounts Actual Positive

Original Final Amounts (Negative)

REVENUES Real estate taxes 98,407,076$ 98,381,576$ 98,373,154$ (8,422)$ Intergovernmental 4,328,056 4,996,856 3,460,875 (1,535,981) Fees, fines, charges and miscellaneous 13,132,300 13,277,300 12,888,190 (389,110) Investment income 282,900 888,600 1,461,344 572,744

Total revenues 116,150,332 117,544,332 116,183,563 (1,360,769)

EXPENDITURES General government:

Council 683,600 673,600 577,025 96,575 Executive 203,200 203,200 196,787 6,413 Controller 855,900 855,900 777,420 78,480 Solicitor 539,000 575,900 495,992 79,908 Community & economic development 720,900 730,900 595,848 135,052 Human resources 1,625,600 1,630,600 1,276,472 354,128 Administration 6,607,800 6,616,879 5,884,587 732,292 Fiscal affairs 6,825,028 6,831,956 6,281,521 550,435

18,061,028 18,118,935 16,085,652 2,033,283

Court system and corrections: District attorney 4,841,500 4,841,500 4,661,867 179,633 Sheriff 6,617,100 6,631,112 6,075,997 555,115 Coroner 1,416,300 1,416,300 1,159,509 256,791 Public defender 1,661,400 1,705,498 1,606,771 98,727 Court services 3,126,700 3,137,100 2,849,965 287,135 Court administration 16,262,400 16,556,677 15,959,962 596,715 Corrections 28,268,820 28,268,820 27,925,801 343,019 Fiscal affairs 570,000 570,000 518,655 51,345

62,764,220 63,127,007 60,758,527 2,368,480

Public works 9,428,009 10,102,107 4,804,428 5,297,679 Human services 1,145,600 1,461,400 1,279,314 182,086 Debt service:

Principal 5,499,900 5,499,900 5,499,847 53 Interest 3,690,400 3,690,400 3,690,299 101

Total expenditures 100,589,157 101,999,749 92,118,067 9,881,682

Excess of revenues over expenditures 15,561,175 15,544,583 24,065,496 8,520,913

OTHER FINANCING SOURCES (USES) Transfers in 1,180,100 1,180,100 1,239,474 59,374 Transfers out (16,741,275) (16,724,683) (19,918,278) (3,193,595)

Total other financing sources (uses) (15,561,175) (15,544,583) (18,678,804) (3,134,221)

Net change in fund balances - - 5,386,692 5,386,692 Fund balances -- January 1 - - 37,757,484 37,757,484

Fund balances -- December 31 - $ - $ 43,144,176$ 43,144,176$

88

Required Supplementary Information


Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

Children, Youth and Families Special Revenue Fund




REVENUES Intergovernmental:

Act 148 18,548,000$ 19,344,100$ 19,207,346$ (136,754)$ Title XX 270,600 270,700 270,641 (59) Block grant 50,000 50,000 - (50,000) TANF 893,600 888,000 864,531 (23,469) Title IV-E 4,852,200 4,936,100 4,708,941 (227,159) Title IV-B 107,600 107,600 107,512 (88) Federal and state - other 2,096,900 2,148,300 2,115,616 (32,684)

26,818,900 27,744,800 27,274,587 (470,213)

Fees, fines, charges and miscellaneous 2,111,200 2,035,000 2,712,047 677,047

Total revenues 28,930,100 29,779,800 29,986,634 206,834

EXPENDITURES Court system and corrections:

Adjudicated juvenile care 1,050,000 1,193,900 1,193,873 27 Juvenile detention home 6,540,800 6,474,349 6,465,660 8,689

7,590,800 7,668,249 7,659,533 8,716

Human services:Salaries and wages 6,050,900 5,931,858 5,919,295 12,563 Employees' benefits 2,952,300 2,448,397 2,424,634 23,763 Capital outlay 33,800 196,144 194,737 1,407 Other operating 18,077,700 19,992,823 19,675,888 316,935 Information and referral emergency services 191,400 171,400 169,934 1,466 Planning and community development 282,000 247,178 247,177 1 Central service costs 577,400 589,700 589,700 -

28,165,500 29,577,500 29,221,365 356,135

Debt service: Principal 1,009,400 1,009,400 1,009,362 38 Interest 173,600 173,600 173,530 70

Total expenditures 36,939,300 38,428,749 38,063,790 364,959

Excess (deficiency) of revenues over (under) expenditures (8,009,200) (8,648,949) (8,077,156) 571,793

OTHER FINANCING SOURCES

Transfers in 8,009,200 8,648,949 8,077,156 (571,793)

Total other financing sources 8,009,200 8,648,949 8,077,156 (571,793)

Net change in fund balances - - - - Fund balances -- January 1 - - - -

Fund balances -- December 31 - $ - $ - $ - $


89




Gracedale Nursing Home Special Revenue Fund





Medical assistance 55,692,628$ 55,692,628$ 58,454,070$ 2,761,442$ Medicare 9,235,500 9,235,500 9,877,435 641,935

64,928,128 64,928,128 68,331,505 3,403,377

Fees, fines, charges and miscellaneous 13,356,300 13,356,300 13,746,864 390,564

Total revenues 78,284,428 78,284,428 82,078,369 3,793,941

EXPENDITURES

Human services:Salaries and wages 29,201,500 28,717,438 28,167,231 550,207 Employees' benefits 14,370,800 14,714,862 13,925,683 789,179 Capital outlay 637,275 837,771 805,941 31,830 Other operating 31,479,246 31,400,750 31,155,614 245,136 Central service costs 2,832,200 2,850,200 2,850,200 -

78,521,021 78,521,021 76,904,669 1,616,352

Debt service: Principal 1,448,400 1,448,400 1,448,221 179 Interest 484,700 484,700 484,535 165


Excess (deficiency) of revenues over (under) expenditures (2,169,693) (2,169,693) 3,240,944 5,410,637

Net change in fund balances (2,169,693) (2,169,693) 3,240,944 5,410,637 Fund balances -- January 1 2,169,693 2,169,693 2,169,693 -



90




HealthChoices Special Revenue Fund





HC Expansion - Newly Eligible 18,085,800$ 17,235,300$ 17,587,822$ 352,522$ SSI with medicare 7,355,500 7,425,700 7,396,214 (29,486) SSI without medicare 22,684,400 23,283,600 23,579,431 295,831 Temp assistance needy families 19,437,600 21,743,900 22,349,196 605,296

67,563,300 69,688,500 70,912,663 1,224,163

Investment income 125,000 463,900 474,295 10,395

Total revenues 67,688,300 70,152,400 71,386,958 1,234,558

EXPENDITURES Human services:

Salaries and wages 326,800 326,800 302,805 23,995 Employees' benefits 132,100 132,100 85,182 46,918 Other operating 85,782,731 88,258,031 71,666,101 16,591,930 Central service costs 53,800 42,600 42,600 -


Excess (deficiency) of revenues over (under) expenditures (18,607,131) (18,607,131) (709,730) 17,897,401

Net change in fund balances (18,607,131) (18,607,131) (709,730) 17,897,401

Fund balance -- January 1 18,607,131 18,607,131 18,607,131 -

Fund balance -- December 31 - $ - $ 17,897,401$ 17,897,401$


91


92

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Data

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

1) Prior to October 3, the Executive submits to the Council a proposed operating budget for the following calendar year. The operating budget includes proposed expenditures and the means of financing them for the general and special revenue funds.

2) The County budgets the capital projects funds over the life of the project in lieu of an annual budget. Consequently, a budget to actual comparison for the capital projects funds is not presented because such a statement would not be meaningful.

3) Public hearings are conducted at the Northampton County Government Center to obtain taxpayer comments.

4) Prior to December 17, the budget is legally enacted through passage of a resolution. If Council fails to adopt the budget by this date, the budget submitted by the Executive shall be deemed adopted for the succeeding year, until such time as the Council shall adopt a budget for the remainder of that year.

5) Council maintains legal budgetary control at the departmental level and approves transfers between departments, whether between funds or within a fund, or revisions which alter the total revenues and expenditures of any fund. The Executive is authorized to transfer within departments, whether between funds or within a fund, subject however, to restrictions imposed by federal and state programs that dictate the appropriation of certain intergovernmental revenues. Budgetary information as amended by the approval process is presented in the combined operating statements at the program level.

6) Budgetary data is included in the County's computerized general ledger system and is employed as a management control device during the year for the general and special revenue funds.

7) Budgets for the general and special revenue funds are adopted on the modified accrual basis of accounting, which basis is consistent with accounting principles generally accepted in the United States of America.

The budgeted fund balance at the beginning of the year represents that portion of the actual beginning fund balance needed to finance the excess of current year budgeted appropriations over budgeted revenues.

The receipt of additional intergovernmental revenues required supplemental appropriations of approximately $7.1 million in 2018. Appropriations of budgeted beginning fund balances in excess of amounts estimated in the budget were not required in 2018.

Unexpended appropriations lapse at the end of the year, except for originally budgeted capital appropriations, which continue until expended (maximum of three years). An appropriation for a capital project shall continue in force until the purpose for which it was made has been accomplished or abandoned.

The NCGPA Fund did not adopt a budget for 2018. The PA Municipal Authorities Act does not require that a budget be adopted. Accordingly, the NCGPA is not required to present budgetary comparison information.

93

Other Supplementary Information

94

COUNTY OF NORTHAMPTON, PENNSYLVANIACombining Balance Sheet

Nonmajor Governmental FundsDecember 31, 2018

HughMoore

SpecialRevenueFunds Total

ASSETS

Cash and cash equivalents 14,343,763$ 50,079$ 14,393,842$ Investments - 1,407,992 1,407,992 Receivables:

Taxes 180,245 - 180,245 Interest and dividends - 1,073 1,073 Other 2,251,948 - 2,251,948

Due from other funds 9,538,437 - 9,538,437 Due from other governments 1,735,667 - 1,735,667

Total assets 28,050,060$ 1,459,144$ 29,509,204$

LIABILITIES AND FUND BALANCES Liabilities:

Accounts payable and accruedliabilities 7,034,532$ - $ 7,034,532$

Due to other funds 2,276,474 116,562 2,393,036 Due to other governments 203,654 - 203,654 Unearned revenue 2,979,582 - 2,979,582

Total liabilities 12,494,242 116,562 12,610,804

Fund balances:

Non-Spendable:Permanent fund principal - 1,000,000 1,000,000

Restricted for:Community and economic development 1,834,854 - 1,834,854 County wide surveys and studies 43,155 - 43,155 Drug and alcohol programs 851,719 - 851,719 Emergency services 125,343 - 125,343 Environmental projects 1,694,507 - 1,694,507 Future gaming grants 2,806,947 - 2,806,947 Future tourism grants 334,551 - 334,551 Bridge repairs and replacement 3,227,154 - 3,227,154 Louise Moore Park projects 100,852 342,582 443,434 Open space projects - - - Records improvements 830,405 - 830,405

Committed for:

Open space projects 3,706,331 - 3,706,331

Total fund balances 15,555,818 1,342,582 16,898,400

Total liabilities and fund balances 28,050,060$ 1,459,144$ 29,509,204$

TrustPermanent

Fund

95

COUNTY OF NORTHAMPTON, PENNSYLVANIACombining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Governmental FundsFor the Year Ended December 31, 2018

Hugh

SpecialRevenue

Funds Fund Total

REVENUESTaxes 2,574,324$ - $ 2,574,324$ Intergovernmental 33,061,943 - 33,061,943 Fees, fines, charges and miscellaneous 10,144,731 - 10,144,731 Investment income 196,332 (76,961) 119,371

Total revenues 45,977,330 (76,961) 45,900,369

EXPENDITURES Current: General government 14,344,530 - 14,344,530

Court system and corrections 4,787,366 - 4,787,366 Public works 2,524,379 128,837 2,653,216 Human services 27,481,355 - 27,481,355

Debt Service:Principal 537,166 - 537,166 Interest 196,880 - 196,880

Total expenditures 49,871,676 128,837 50,000,513

Excess (deficiency) of revenues over (under) expenditures (3,894,346) (205,798) (4,100,144)

OTHER FINANCING SOURCES (USES)

Transfers in 4,124,887 - 4,124,887 Transfers out (1,233,604) - (1,233,604)

Total other financing sources (uses) 2,891,283 - 2,891,283

Net change in fund balances (1,003,063) (205,798) (1,208,861)

Fund balances -- January 1 16,558,881 1,548,380 18,107,261

Fund balances -- December 31 15,555,818$ 1,342,582$ 16,898,400$

MooreTrust

Permanent

96

AreaAgency Community Develop- Drug

on and Economic mental Domestic and Emergency Aging Bridges Development Conduit Programs Relations Alcohol Services

ASSETS Cash and cash

equivalents 36,763$ 3,289,649$ 1,083$ 635,009$ - $ 200$ 200$ 227,349$ Receivables:

Hotel room rentaltaxes - - - - - - - -

Other 191,165 18,074 735,554 - - - - 1,302,635 Due from other funds 1,079,826 - 1,110,529 214,361 1,231,381 - 935,175 - Due from other

governments - - - - 44,002 893,951 255,648 -

Total assets 1,307,754$ 3,307,723$ 1,847,166$ 849,370$ 1,275,383$ 894,151$ 1,191,023$ 1,529,984$

LIABILITIES AND

FUND BALANCESLiabilities:

Accounts payable and accrued liabilities 393,499$ 17,639$ 12,312$ - $ 551,668$ 80,449$ 299,536$ 253,403$

Due to other funds - 62,930 - - - 813,702 - 1,151,238 Due to other governments - - - - 198,102 - - - Unearned revenue 914,255 - - 806,215 525,613 - 39,768 -

Total liabilities 1,307,754 80,569 12,312 806,215 1,275,383 894,151 339,304 1,404,641

Fund balances:

Restricted for: Community and Economic development - - 1,834,854 - - - - - County wide surveys and studies - - - 43,155 - - - - Drug and alcohol programs - - - - - - 851,719 - Emergency services - - - - - - - 125,343 Environmental protection - - - - - - - - Future gaming grants - - - - - - - - Future hotel tax grants - - - - - - - - Bridge repairs and replacement - 3,227,154 - - - - - - Louise Moore Park projects - - - - - - - - Records improvements - - - - - - - -

Committed for:

Open space projects - - - - - - - -

Total fund balances - 3,227,154 1,834,854 43,155 - - 851,719 125,343

Total liabilities and fund balances 1,307,754$ 3,307,723$ 1,847,166$ 849,370$ 1,275,383$ 894,151$ 1,191,023$ 1,529,984$


Nonmajor Special Revenue FundsDecember 31, 2018

97

Hotel Louise RecordsEnviron- Room Moore Open Improvementmental Rental Pine Mental Space and

Protection Gaming Tax Bequest Health Initiative Automation Total

1,462,168$ 2,666,741$ - $ 101,012$ 1,200$ 5,922,389$ - $ 14,343,763$

- - 180,245 - - - - 180,245 - - - - - - 4,520 2,251,948

902,796 - 860,876 - 2,365,930 - 837,563 9,538,437

1,485 540,581 - - - - - 1,735,667

2,366,449$ 3,207,322$ 1,041,121$ 101,012$ 2,367,130$ 5,922,389$ 842,083$ 28,050,060$

671,942$ 152,977$ 706,570$ 160$ 1,667,847$ 2,214,852$ 11,678$ 7,034,532$ - 247,398 - - - 1,206 - 2,276,474 - - - - 5,552 - - 203,654 - - - - 693,731 - - 2,979,582

671,942 400,375 706,570 160 2,367,130 2,216,058 11,678 12,494,242

- - - - - - - 1,834,854 - - - - - - - 43,155 - - - - - - - 851,719 - - - - - - - 125,343

1,694,507 - - - - - - 1,694,507 - 2,806,947 - - - - - 2,806,947 - - 334,551 - - - - 334,551 - - - - - - - 3,227,154 - - - 100,852 - - - 100,852 - - - - - - 830,405 830,405

- - - - - 3,706,331 - 3,706,331

1,694,507 2,806,947 334,551 100,852 - 3,706,331 830,405 15,555,818

2,366,449$ 3,207,322$ 1,041,121$ 101,012$ 2,367,130$ 5,922,389$ 842,083$ 28,050,060$

98

AreaAgency Community Develop- Drug

on and Economic mental Domestic and

Aging Bridges Development Conduit Programs Relations Alcohol

REVENUES Taxes - $ - $ - $ - $ - $ - $ - $ - $ Intergovernmental 5,576,084 1,468,909 26,424 1,938,096 5,422,328 3,294,344 3,359,827 183,324 Fees, fines, charges

and miscellaneous 130,866 42,625 370,854 - 7,957 110,481 215,221 6,518,711 Investment income 18,240 30,473 9,118 195 29,737 - 18,664 9,583

Total revenues 5,725,190 1,542,007 406,396 1,938,291 5,460,022 3,404,825 3,593,712 6,711,618

EXPENDITURES Current:

General government - - 220,743 1,498,944 - - - 7,021,922 Court system and

corrections - - - - - 4,731,021 - - Public works - 1,707,287 - - - - - - Human services 5,725,190 - - 576,189 6,007,883 - 3,713,997 -

Debt service:Principal - - - - - 153,642 - 383,524 Interest - - - - - 165,589 - 31,291

Total expenditures 5,725,190 1,707,287 220,743 2,075,133 6,007,883 5,050,252 3,713,997 7,436,737

Excess (deficiency) of revenues over (under) expenditures - (165,280) 185,653 (136,842) (547,861) (1,645,427) (120,285) (725,119)

OTHER FINANCING SOURCES (USES)Transfers in - - - - 547,861 1,645,427 89,838 703,491 Transfers out - - (42,000) - - - - -

Total other financingsources (uses) - - (42,000) - 547,861 1,645,427 89,838 703,491

Net change in fund balances - (165,280) 143,653 (136,842) - - (30,447) (21,628)

Fund Balances:January 1 - 3,392,434 1,691,201 179,997 - - 882,166 146,971

December 31 - $ 3,227,154$ 1,834,854$ 43,155$ - $ - $ 851,719$ 125,343$

Services

Emergency

COUNTY OF NORTHAMPTON, PENNSYLVANIACombining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Special Revenue FundsFor the Year Ended December 31, 2018

99

Hotel Louise RecordsRoom Moore Open ImprovementRental Pine Mental Space

Gaming Tax Bequest Health Initiative Automation Total

- $ - $ 2,574,324$ - $ - $ - $ - $ 2,574,324$

655,156 - - - 11,090,861 - 46,590 33,061,943

161,130 2,318,429 - - 25,858 - 242,599 10,144,731 9,062 1,233 - 4,745 49,582 8,252 7,448 196,332

825,348 2,319,662 2,574,324 4,745 11,166,301 8,252 296,637 45,977,330

986,703 881,377 2,794,137 - - 914,051 26,653 14,344,530

- - - - - - 56,345 4,787,366 - - - 697,499 - 119,593 - 2,524,379 - - - - 11,458,096 - - 27,481,355

- - - - - - - 537,166 - - - - - - - 196,880

986,703 881,377 2,794,137 697,499 11,458,096 1,033,644 82,998 49,871,676

(161,355) 1,438,285 (219,813) (692,754) (291,795) (1,025,392) 213,639 (3,894,346)

- - - - 291,795 846,475 - 4,124,887 (62,646) (1,048,958) - - - - (80,000) (1,233,604)

(62,646) (1,048,958) - - 291,795 846,475 (80,000) 2,891,283

(224,001) 389,327 (219,813) (692,754) - (178,917) 133,639 (1,003,063)

1,918,508 2,417,620 554,364 793,606 - 3,885,248 696,766 16,558,881

1,694,507$ 2,806,947$ 334,551$ 100,852$ - $ 3,706,331$ 830,405$ 15,555,818$

Protection

andmentalEnviron-

100


Capital Projects FundsDecember 31, 2018

Total2013 Current

Bond Issue Year

ASSETS

Cash and cash equivalents 7,918,821$ 3,194,123$ 11,112,944$ Investments 6,821,087 - 6,821,087 Receivables:

Interest and dividends 104,074 - 104,074 Due from other funds 3,338,439 - 3,338,439

Total assets 18,182,421$ 3,194,123$ 21,376,544$

LIABILITIES AND FUND BALANCES

Liabilities:Accounts payable and accrued

liabilities 485,503$ 104,907$ 590,410$ Due to other funds - 30,253 30,253

Total liabilities 485,503 135,160 620,663

Fund balances: Restricted for:

Bond financed improvements - 3,058,963 3,058,963 Committed for:

Capital construction 17,696,918 - 17,696,918

Total fund balances 17,696,918 3,058,963 20,755,881

Total liabilities and fund balances 18,182,421$ 3,194,123$ 21,376,544$

ImprovementProjects

Capital

101

2013

Bond Issue Total

REVENUES

Investment income 241,642$ 4,618$ 246,260$

Total revenues 241,642 4,618 246,260

EXPENDITURES

Capital projects:

Courthouse complex 225,384 11,500 236,884

County wide improvements 673,301 - 673,301

Gracedale complex 1,409,600 1,681,167 3,090,767

Jail 534,585 - 534,585

Bridges - 125,209 125,209

Park improvements and expansion 67,601 - 67,601

Total capital projects 2,910,471 1,817,876 4,728,347

Total expenditures 2,910,471 1,817,876 4,728,347

Deficiency of revenues under

expenditures (2,668,829) (1,813,258) (4,482,087)

OTHER FINANCING SOURCES (USES)

Transfers in 3,384,959 - 3,384,959

Transfers out (55,870) - (55,870)

Total other financing sources (uses) 3,329,089 - 3,329,089

Net change in fund balances 660,260 (1,813,258) (1,152,998)

Fund balances -- January 1 17,036,658 4,872,221 21,908,879

Fund balances -- December 31 17,696,918$ 3,058,963$ 20,755,881$

Capital

Improvement

Projects


Combining Statement of Revenues, Expenditures and Changes in Fund Balances

Capital Projects FundsFor the Year Ended December 31, 2018

102

RetireeHealthcare Total

ASSETSCash and cash equivalents 2,564,977$ 120,440$ 2,685,417$

Receivables:Interest and dividends 5,557 534 6,091 Other 220,426 - 220,426

Total receivables 225,983 534 226,517

Investments, at fair value:Equity mutual funds 252,073,529 27,119,158 279,192,687 Corporate bonds 62,151 - 62,151 Fixed income mutual funds 96,438,066 7,956,203 104,394,269 Real estate 22,668,309 1,850,908 24,519,217

Total investments 371,242,055 36,926,269 408,168,324

Total assets 374,033,015 37,047,243 411,080,258

LIABILITIES Payables:

Accounts payable - 7,814 7,814 Investment management fees payable 94,884 - 94,884 Retirement refunds payable 136,928 - 136,928 Accrued healthcare claims - 223,000 223,000

Total liabilities 231,812 230,814 462,626

NET POSITION,

RESTRICTED FOR PENSIONS ANDPOST-EMPLOYMENT BENEFITS 373,801,203$ 36,816,429$ 410,617,632$

Retirement Trust FundsEmployees'Retirement

COUNTY OF NORTHAMPTON, PENNSYLVANIACombiningStatement of Fiduciary Net Position

Retirement Trust FundsDecember 31, 2018

103

Employees' RetireeRetirement Healthcare Total

ADDITIONSContributions:

Charges for services - $ 12,298$ 12,298$ Plan members 5,627,098 - 5,627,098 Employer share of military

buyback by employees 22,963 - 22,963 Employer contributions 9,720,489 3,746,488 13,466,977

Total contributions 15,370,550 3,758,786 19,129,336

Investment earnings:Interest and dividend income 7,966,409 778,668 8,745,077 Net increase in fair

value of investments (27,844,696) (3,039,935) (30,884,631)

Total investment earnings (19,878,287) (2,261,267) (22,139,554) Less investment expense (330,790) (37,645) (368,435)

Net investment earnings (20,209,077) (2,298,912) (22,507,989)

Total additions (4,838,527) 1,459,874 (3,378,653)

DEDUCTIONSRetirees' health benefit payments - 4,144,841 4,144,841 Benefit payments 25,722,986 - 25,722,986 Refund of contributions 1,274,795 - 1,274,795 Administrative expenses 43,890 4,715 48,605

Total deductions 27,041,671 4,149,556 31,191,227

Change in net position (31,880,198) (2,689,682) (34,569,880) Net position - January 1 405,681,401 39,506,111 445,187,512

Net position - December 31 373,801,203$ 36,816,429$ 410,617,632$

Retirement Trust Funds


Retirement Trust FundsCombining Statement of Changes in Fiduciary Net Position


104


105

Individual Nonmajor Fund Financial Statements

106

Nonmajor Governmental Funds

Special Revenue

Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.

Area Agency on Aging Fund - to account for the costs of operating and maintaining a program of social services for the elderly of Northampton County. Funding is provided by federal and state grants and County real estate tax.

Bridges Fund - to account for the costs of construction, reconstruction, maintenance and repair of County bridges and interchange illumination on state routes 22 and 33. Funding is provided by the Commonwealth of Pennsylvania through allocations from the Liquid Fuels Tax, Act 44 and Act 89 Bridge funds and Act 13 Marcellus Shale Legacy funds.

Community and Economic Development Fund – to account for revolving loans, solid waste and affordable housing funds. Funding is provided by sustainability fees, state and federal sources and Monroe County Gaming proceeds.

Conduit Fund – to account for: 1) the distribution of grants which provide communities the opportunity to design and implement local development efforts in the areas of community conservation and economic development with funding provided by federal grants from the United States Department of Housing and Urban Development, 2) the receipt and distribution of monies for specialized transportation and truancy prevention, 3) the receipt and distribution of monies from the state Drug Control and System Improvement (DCSI) for a computer network and child advocacy.

Developmental Programs Fund - to account for the proceeds of specific revenue sources related to the provision of developmental program services that are restricted to expenditures for those specified purposes.

Domestic Relations Fund - to account for the cost of operating the County's child support enforcement, collection and disbursement program. Funding is provided primarily by federal Title IV-D funds and County real estate tax. Federal law requires that these funds be used for the collection, recording and distribution of child support.

Drug and Alcohol Fund - to account for the costs of operating and maintaining a program for education, prevention and treatment of drug and alcohol abuses. Funding is provided by federal and state grants and County real estate tax.

Emergency Services Fund – to account for the activities of the County’s emergency telephone system and grants related to emergency management. Funding is provided by telephone user fees, County real estate tax and various grant proceeds.

Environmental Protection Fund – to account for the clean water, dirt and gravel and low volume roads, hazardous materials and Act 13 Marcellus Shale Legacy funds. Funding is provided by state grants and Marcellus Shale Legacy grant allocation.

Gaming Fund – to account for the County’s portion of gross terminal revenue (slots) and table game revenue generated by the Sands Casino Resort in Bethlehem.

Hotel Room Rental Tax Fund – to account for taxes collected from hotel operators within the County and the related distributions.

(Continued)

107

Nonmajor Governmental Funds, Continued

Special Revenue, Continued

Louise Moore Pine Bequest - to account for the receipt of funds donated by Louise Moore Pine to be used in connection with maintaining the Louise W. Moore Park and to maintain and preserve the 1822 Farmhouse at Slate Post Farm.

Mental Health Fund – to account for the costs of operating a comprehensive mental health program. Funding is provided by federal and state grants and County real estate tax and is used for the prevention of mental disability and the diagnosis, care, treatment and rehabilitation of the mentally disabled.

Open Space Initiative – to account for the costs to purchase and develop land and to provide grants to preserve open space. Funding is provided by County real estate tax.

Records Improvement and Automation Fund – to account for the Countywide and Deeds records improvement, Civil and Criminal automation and Coroner vital statistics funds. Funding is provided by various user fees and a state vital statistics grant.

Permanent

Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government’s programs.

Hugh Moore Trust Permanent Fund – to account for the monetary endowment provided by Hugh Moore. The provisions of the endowment restrict the income derived from the principal to be used to maintain the Louise W. Moore Park facility.

108

COUNTY OF NORTHAMPTON, PENNSYLVANIASchedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

Area Agency on Aging Special Revenue FundFor the Year Ended December 31, 2018

Variance withFinal Budget -

Actual Positive



State block grant 5,323,300$ 5,119,200$ 4,688,014$ (431,186)$ Title V 56,600 21,200 21,112 (88) Title XIX 432,000 686,100 686,088 (12) Federal - other 2,100 2,100 180,870 178,770

5,814,000 5,828,600 5,576,084 (252,516)

Fees, fines, charges and miscellaneous 154,500 355,000 130,866 (224,134) Investment income 3,000 14,000 18,240 4,240

Total revenues 5,971,500 6,197,600 5,725,190 (472,410)


Salaries and wages 1,871,200 1,737,199 1,614,433 122,766 Employees' benefits 848,700 848,700 656,635 192,065 Other operating 3,159,300 2,975,501 2,841,583 133,918 Information and referral emergency

services 259,900 284,200 283,604 596 Planning and community development 190,000 191,000 147,135 43,865 Central service costs 182,400 181,400 181,800 (400)


Excess (deficiency) of revenuesover (under) expenditures (540,000) (20,400) - 20,400

OTHER FINANCING SOURCES Transfers in 540,000 20,400 - (20,400)

Total other financing sources 540,000 20,400 - (20,400)

Net change in fund balances - - - -

Fund balances -- January 1 - - - -


Budgeted Amounts

109


Bridges Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive



State allocation 590,000$ 590,000$ 553,754$ (36,246)$

Act 44 131,900 131,900 130,226 (1,674)

Act 89 220,000 220,000 265,725 45,725

Pennsylvania D.O.T. 60,000 60,000 69,331 9,331

Act 13 Shale Gas Impact Grant 325,000 449,900 449,873 (27)

1,326,900 1,451,800 1,468,909 17,109

Fees, fines, charges and miscellaneous 7,600 7,600 42,625 35,025

Investment income 6,500 30,800 30,473 (327)

Total revenues 1,341,000 1,490,200 1,542,007 51,807

EXPENDITURES Public works:

Salaries and wages 180,900 180,900 177,990 2,910 Employees' benefits 88,400 88,400 70,809 17,591 Bridge reconstruction 4,146,834 3,433,383 380,079 3,053,304 Bridge repairs and maintenance 117,700 1,014,786 886,817 127,969

Other operating 157,700 123,265 148,592 (25,327) Central service costs 46,900 43,000 43,000 -


Excess (deficiency) of revenues

over (under) expenditures (3,397,434) (3,393,534) (165,280) 3,228,254

OTHER FINANCING SOURCES Transfers in 5,000 1,100 - (1,100)

Total other financing sources 5,000 1,100 - (1,100)


Fund balances -- January 1 3,392,434 3,392,434 3,392,434 -


Budgeted Amounts

110


Community and Economic Development Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive


REVENUES Intergovernmental 406,314$ 406,314$ 26,424$ (379,890)$ Fees, fines, charges and miscellaneous 400,000 400,000 370,854 (29,146)

Investment income 100 100 9,118 9,018

Total revenues 806,414 806,414 406,396 (400,018)

EXPENDITURES

General government:Affordable housing 612,411 612,411 125,117 487,294 Solid waste 776,478 776,478 95,626 680,852

Revolving loan fund 590,565 590,565 - 590,565

Total expenditures 1,979,454 1,979,454 220,743 1,758,711

Excess (deficiency) of revenuesover (under) expenditures (1,173,040) (1,173,040) 185,653 1,358,693


Transfers out - - (42,000) (42,000)

Total other financing (uses) - - (42,000) (42,000)

Net change in fund balances (1,173,040) (1,173,040) 143,653 1,316,693

Fund balances -- January 1 1,173,040 1,173,040 1,691,201 518,161


Budgeted Amounts

111


Conduit Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive



Community development block grant 2,520,547$ 4,063,924$ 1,245,344$ (2,818,580)$ Lead based paint grant 1,650,000 1,650,000 113,931 (1,536,069) Emergency solutions grants 150,000 - - - PHARE - 350,000 - (350,000) PHMC Keystone grant 25,000 25,000 - (25,000) EPA brownfields 229,800 229,800 2,632 (227,168) LSA Monroe Grant 300,000 300,000 - (300,000) Metro Plus 1,411,100 1,411,100 576,189 (834,911)

6,286,447 8,029,824 1,938,096 (6,091,728)

Investment income - - 195 195

Total revenues 6,286,447 8,029,824 1,938,291 (6,091,533)

EXPENDITURES

General government:Arts Quest - - - - Borough business revitalization - - - - Community development block grant 2,670,546 4,063,926 1,245,344 2,818,582 Capital 8,100 9,800 8,220 1,580 Green Knight econ development 266,600 266,600 - 266,600 Lead based paint 1,650,000 1,650,000 113,931 1,536,069 LVEDC 13,200 13,200 2,632 10,568 Supplies and equipment 35,768 46,885 42,237 4,648 Professional services 136,130 123,310 86,580 36,730 PHARE - 350,000 - 350,000 PHMC Keystone 25,000 25,000 - 25,000 Slate Belt YMCA 250,000 250,000 - 250,000

5,055,344 6,798,721 1,498,944 5,299,777

Human services:Metro Plus 1,411,100 1,411,100 576,189 834,911


Excess (deficiency) of revenues

over (under) expenditures (179,997) (179,997) (136,842) 43,155

Net change in fund balances (179,997) (179,997) (136,842) 43,155 Fund balances -- January 1 179,997 179,997 179,997 -

Fund balances -- December 31 - $ - $ 43,155$ 43,155$

Budgeted Amounts

112



Developmental Programs Special Revenue Fund


Variance with

Final Budget -



REVENUES

Intergovernmental:Block grant 3,209,700$ 3,274,000$ 2,789,515$ (484,485)$ Early intervention 2,773,500 3,040,100 2,536,281 (503,819) Medical assistance 150,000 119,200 96,532 (22,668)

6,133,200 6,433,300 5,422,328 (1,010,972)

Fees, fines, charges and miscellaneous 7,800 7,800 7,957 157 Investment income 5,300 20,800 29,737 8,937

Total revenues 6,146,300 6,461,900 5,460,022 (1,001,878)

EXPENDITURES

Human services:Salaries and wages 1,239,500 1,239,400 1,131,653 107,747 Employees' benefits 545,000 562,100 455,581 106,519 Other operating 4,520,600 4,943,345 4,134,178 809,167 Information and referral emergency

services 51,500 81,155 79,508 1,647 Planning and community development 86,300 86,300 56,863 29,437 Central service costs 150,200 150,100 150,100 -


Excess (deficiency) of revenuesover (under) expenditures (446,800) (600,500) (547,861) 52,639


Transfers in 446,800 600,500 547,861 (52,639)

Total other financing sources 446,800 600,500 547,861 (52,639)

Net change in fund balances - - - - Fund balances -- January 1 - - - -


113


Domestic Relations Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive



Title IV-D 2,865,700$ 2,865,700$ 2,699,834$ (165,866)$ Incentives 525,000 525,000 594,510 69,510

3,390,700 3,390,700 3,294,344 (96,356)

Fees, fines, charges and miscellaneous 100,000 100,000 110,481 10,481

Total revenues 3,490,700 3,490,700 3,404,825 (85,875)

EXPENDITURES Court system and corrections:

Salaries and wages 2,774,700 2,782,700 2,778,682 4,018 Employees' benefits 1,443,500 1,395,500 1,261,335 134,165 Capital outlay - - - - Other operating 428,200 428,200 406,304 21,896 Central service costs 249,100 284,700 284,700 -

4,895,500 4,891,100 4,731,021 160,079

Debt service: Principal payments 153,700 153,700 153,642 58 Interest 165,600 165,600 165,589 11


Excess (deficiency) of revenuesover (under) expenditures (1,724,100) (1,719,700) (1,645,427) 74,273

OTHER FINANCING SOURCES Transfers in 1,724,100 1,719,700 1,645,427 (74,273)

Total other financing sources 1,724,100 1,719,700 1,645,427 (74,273)




Budgeted Amounts

114


Drug and Alcohol Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive



State base allocation 722,900$ 822,900$ 783,052$ (39,848)$ SAPT block grant 813,400 1,203,900 1,439,482 235,582 Block grant 754,800 871,800 910,488 38,688 PCCD 110,000 199,700 167,640 (32,060) Federal and state - other 59,200 59,200 59,165 (35)

2,460,300 3,157,500 3,359,827 202,327

Fees, fines, charges and miscellaneous 261,000 224,500 215,221 (9,279) Investment income 4,000 14,000 18,664 4,664

Total revenues 2,725,300 3,396,000 3,593,712 197,712


Salaries and wages 410,500 424,600 396,493 28,107 Employees' benefits 185,900 186,400 159,521 26,879 Other operating 2,996,766 3,598,044 3,039,646 558,398 Information and referral emergency



Excess (deficiency) of revenues over (under) expenditures (976,666) (979,166) (120,285) 858,881


Transfers in 94,500 97,000 89,838 (7,162)


Net change in fund balances (882,166) (882,166) (30,447) 851,719

Fund balances -- January 1 882,166 882,166 882,166 -


Budgeted Amounts

115


Emergency Services Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive



Federal - Other 30,000$ 246,000$ 183,324$ (62,676)$ Hazardous material 16,900 16,900 - (16,900)

46,900 262,900 183,324 (79,576)

Fees, fines, charges and miscellaneous 6,763,400 6,763,400 6,518,711 (244,689) Investment income 1,000 1,000 9,583 8,583

Total revenues 6,811,300 7,027,300 6,711,618 (315,682)


Emergency communication and 911 7,469,363 7,477,863 6,702,049 775,814 Hazardous material 183,908 183,908 136,549 47,359 Task force equipment 30,000 246,000 183,324 62,676

7,683,271 7,907,771 7,021,922 885,849

Debt service: Principal payments 383,600 383,600 383,524 76 Interest 31,300 31,300 31,291 9


Excess (deficiency) of revenues(1,286,871) (1,295,371) (725,119) 570,252

OTHER FINANCING SOURCES Transfers in 1,139,900 1,148,400 703,491 (444,909)

Total other financing sources 1,139,900 1,148,400 703,491 (444,909)




Budgeted Amounts

116


Environmental Protection Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive



Dirt and gravel road 289,700$ 289,700$ 255,893$ (33,807)$ Shale gas impact grant 268,000 268,000 327,935 59,935 Watershed specialist grant 71,700 80,400 71,328 (9,072)

629,400 638,100 655,156 17,056

Fees, fines, charges and miscellaneous:Clean water 60,000 60,000 59,219 (781) Farmland - TIF - - 88,000 88,000 Watershed specialist 20,000 20,000 13,911 (6,089)

80,000 80,000 161,130 81,130 Investment income 1,900 1,900 9,062 7,162

Total revenues 711,300 720,000 825,348 105,348


Clean water 539,362 539,362 19,289 520,073 Dirt and gravel road 688,781 688,781 275,959 412,822 Farmland - TIF 650 650 - 650 Shale gas impact grant 1,250,280 1,250,280 615,293 634,987 Watershed specialist 100,735 109,435 76,162 33,273


Excess (deficiency) of revenuesover (under) expenditures (1,868,508) (1,868,508) (161,355) 1,707,153

OTHER FINANCING SOURCES (USES) Transfers out (50,000) (50,000) (62,646) (12,646)

Total other financing (uses) (50,000) (50,000) (62,646) (12,646)




Budgeted Amounts

117


Gaming Special Revenue FundFor the Year Ended December 31, 2018




REVENUES Fees, fines, charges and miscellaneous:

Gaming Host Tables 1,425,000$ 1,425,000$ 1,269,474$ (155,526)$ Gaming Host Slots 1,100,000 1,100,000 1,048,955 (51,045)

2,525,000 2,525,000 2,318,429 (206,571)

Investment income:Gaming Host Tables 1,000 1,000 1,230 230 Gaming Host Slots 100 100 3 (97)

1,100 1,100 1,233 133

Total revenues 2,526,100 2,526,100 2,319,662 (206,438)

EXPENDITURES General Government:

Gaming Host Tables:Operating expenditures 3,843,620 3,843,620 881,377 2,962,243

3,843,620 3,843,620 881,377 2,962,243

Gaming Host Slots:Operating expenditures - - - -

- - - -


Excess (deficiency) of revenuesover (under) expenditures (1,317,520) (1,317,520) 1,438,285 2,755,805

OTHER FINANCING USESTransfers out (1,100,100) (1,100,100) (1,048,958) 51,142

Total other financing uses (1,100,100) (1,100,100) (1,048,958) 51,142

Net change in fund balances (2,417,620) (2,417,620) 389,327 2,806,947



118


Hotel Room Rental Tax Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive


REVENUES Taxes 2,628,000$ 2,574,400$ 2,574,324$ (76)$

Total revenues 2,628,000 2,574,400 2,574,324 (76)


ArtsQuest 25,000 25,000 25,000 - Bach Choir of Bethlehem 20,000 20,000 20,000 - Bethlehem City 50,000 50,000 50,000 - Bethlehem Heritage 200,000 200,000 200,000 - Beth Econ Dev Corp 50,000 50,000 50,000 - Blue Valley Farm Show 6,300 6,300 6,300 - CACLV 5,000 5,000 5,000 - Celtic Fest 20,000 20,000 20,000 - Christmas City Summer Jazz 3,000 3,000 (389) 3,389 Delaware and Lehigh NHC 15,000 15,000 15,000 - Da Vinci Science Center 250,000 250,000 250,000 - Freemansburg Borough 50,000 50,000 50,000 - Easton Emergency Squad 23,600 23,600 23,572 28 Greater Easton Development Partnership 50,000 50,000 50,000 - Greater LV Chamber of Commerce 3,700 3,700 3,700 - Hellertown Borough 2,000 2,000 2,000 - Historic Bethlehem Partnership 20,000 20,000 18,382 1,618 Historical Society of Northampton County 100,000 100,000 100,000 - Hotel tax for tourism 1,806,800 1,769,900 1,769,847 53 Jacobsburg Historical Society 5,300 5,300 5,250 50 Moravian Historical Society 25,000 25,000 25,000 - National Museum 24,300 24,300 24,234 66 Nazareth Center for the Arts 5,000 5,000 4,505 495 Nuture Nature Center 14,800 14,800 14,772 28 Palmer Twsp 4,000 4,000 4,000 - Slate Belt Heritage Center 3,000 3,000 1,964 1,036 State Theatre 25,000 25,000 25,000 - Steelworkers' Archives 2,500 2,500 2,500 - Touchstone Theatre 3,500 3,500 3,500 - VIA of the Lehigh Valley 25,000 25,000 25,000 - Future block grants 344,564 327,864 - 327,864





Budgeted Amounts

119


Louise Moore Pine Bequest Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive


REVENUES Investment income 2,000$ 4,600$ 4,745$ 145$

Total revenues 2,000 4,600 4,745 145

EXPENDITURES Public works:

Capital outlay 795,606 798,206 697,499 100,707

Other operating - - - -

Total expenditures 795,606 798,206 697,499 100,707





Budgeted Amounts

120


Mental Health Special Revenue FundFor the Year Ended December 31, 2018





Block Grant 11,286,700$ 11,827,300$ 11,090,861$ (736,439)$

11,286,700 11,827,300 11,090,861 (736,439)

Fees, fines, charges and miscellaneous 24,100 24,100 25,858 1,758 Investment income 12,000 38,000 49,582 11,582

Total revenues 11,322,800 11,889,400 11,166,301 (723,099)


Salaries and wages 1,186,400 1,186,400 1,127,887 58,513 Employees' benefits 513,200 519,200 431,329 87,871 Capital outlay - - - - Other operating 9,040,200 9,467,655 8,961,775 505,880 Information and referral emergency




OTHER FINANCING SOURCES Transfers in 485,300 307,200 291,795 (15,405)





121


Open Space Initiative Special Revenue FundFor the Year Ended December 31, 2018




REVENUES Investment income 3,700$ 3,700$ 8,252$ 4,552$

Total revenues 3,700 3,700 8,252 4,552

EXPENDITURES General Government:

Grants:Municipal parks 746 746 (3,276) 4,022 Farmland preservation 3,335,039 3,335,039 653,702 2,681,337 Livable landscapes 270,387 270,387 263,625 6,762 Environmentally sensitive land 104,378 104,378 - 104,378

3,710,550 3,710,550 914,051 2,796,499

Public works:County park projects 1,024,873 1,024,873 119,593 905,280


Excess (deficiency) of revenues over (under) expenditures (4,731,723) (4,731,723) (1,025,392) 3,706,331

OTHER FINANCING SOURCES (USES) Transfers in 846,475 846,475 846,475 -

Total other financing sources (uses) 846,475 846,475 846,475 -




122


Records Improvement and Automation Special Revenue FundFor the Year Ended December 31, 2018


Actual Positive



Elections HAVA grant - $ 341,970$ - $ (341,970)$ Coroner vital statistics improvement 24,000 24,000 46,590 22,590

24,000 365,970 46,590 (319,380)

Fees, fines, charges and miscellaneous:County-wide records improvement - Deeds 65,000 65,000 68,282 3,282 County-wide records improvement - Orphans 5,100 5,100 5,173 73 County-wide records improvement - Wills 5,200 5,200 5,336 136 Deeds records improvement 100,000 100,000 102,423 2,423 Civil automation 43,000 43,000 49,935 6,935 Criminal automation 13,000 13,000 11,450 (1,550)

231,300 231,300 242,599 11,299

Investment income 1,600 1,600 7,448 5,848

Total revenues 256,900 598,870 296,637 (302,233)


Sheriff records improvement 11,600 11,600 - 11,600 Deeds records improvement 381,087 381,087 26,653 354,434

Elections automation - 341,970 - 341,970

392,687 734,657 26,653 708,004

Court system and corrections:County-wide records improvement 12,833 12,833 8,265 4,568 Coroner vital statistics improvement 223,239 223,239 - 223,239 Civil automation 139,664 139,664 48,080 91,584 Criminal automation 105,243 105,243 - 105,243

480,979 480,979 56,345 424,634

Total expenditures 873,666 1,215,636 82,998 1,132,638

Excess (deficiency) of revenuesover (under) expenditures (616,766) (616,766) 213,639 830,405

OTHER FINANCING USES Transfers in - - - - Transfers out (80,000) (80,000) (80,000) -

Total other financing uses (80,000) (80,000) (80,000) -

Net change in fund balances (696,766) (696,766) 133,639 830,405



Budgeted Amounts

123

REVENUESInvestment income:

Interest and dividend income 33,453$

Net decrease in fair value of investments (110,414)

Total revenues (76,961)

EXPENDITURESPublic works:

Administrative expenditures 12,275

Park maintenance 116,562

Total expenditures 128,837

Deficiency of revenues under expenditures (205,798)

Fund balance -- January 1 1,548,380

Fund balance -- December 31 1,342,582$


Hugh Moore Trust Permanent FundSchedule of Revenues, Expenditures and Changes in Fund Balance


124

Fiduciary Funds

Trust Funds

Employees' Retirement Trust Fund - to account for the accumulation of resources to be used for retirement annuity payments at appropriate amounts and times in the future. Resources are contributed by employees at rates fixed by law, and the County at amounts determined by an annual actuarial study. The fund financial statements can be found in the basic financial statement section of this document.

Retiree Healthcare Trust Fund – to account for the other post-employment employee benefit trust fund for the accumulation of resources to be used for retiree healthcare coverage. Resources are contributed by the County at amounts determined by a bi-annual actuarial study. The fund financial statements can be found in the basic financial statement section of this document.

Agency Funds

Civil Fund - to account for the receipt and disbursement of funds to municipalities or other governmental entities, or other types of restitution pending a court order.

Criminal Fund - to account for the receipt and disbursement of funds to municipalities or other governmental entities, or other types of restitution pending a court order.

Domestic Relations Fund - to account for all funds received and disbursed for child and spousal support as ordered by the court.

Drug Forfeiture Fund - to account for monies seized as a result of state and local drug-related arrests. Court ordered disposition of the monies may be used for confidential case expenditures, municipal task force support, and investigative equipment.

Gaming Authority Restricted Fund – to account for the Northampton County Gaming Authority’s portion of current year gross terminal slot machine revenue generated by the Sands Casino Resort in Bethlehem and funds disbursed to qualifying municipalities at the direction of the Gaming Authority. Any funds remaining at the end of the year are transferred to the Gaming Authority Uncommitted Fund.

Gaming Authority Uncommitted Fund – to account for remaining funds transferred annually from the Gaming Authority Restricted Fund. The funds were generated by gross terminal slot machine revenue at the Sands Casino Resort in Bethlehem.

Gracedale Patients Fund - to account for the collection and payment of patient income to the County and patient escrow account.

License Fund - to account for funds collected from payments for dog, hunting and fishing licenses. These funds are distributed to the appropriate state agencies in the month following the collection of the funds.

Magisterial District Judges - to account for the collection and disbursement of funds in the Minor Judiciary offices.

Orphans' Court Fund - to account for the receipt and disbursement of funds obtained through various document filings, and fees to governmental and other entities; the division acts as a trustee in this capacity.

Prison Inmates Fund - to account for the receipt and disbursement of funds obtained for the benefit of prison inmates.

(Continued)

125

Fiduciary Funds

Agency Funds, Continued

Recorder of Deeds Fund - to account for the receipt and disbursement of funds obtained from the filing of legal documents to governmental entities. This division also acts as a trustee for the distribution of such funds.

Register of Wills Fund - to account for the receipt and disbursement of inheritance tax and other fees to state and local governmental entities; the division acts as trustee in this capacity.

Sheriff Fund - to account for the receipt and disbursement of funds to municipal and other governmental entities obtained from pending legal action. This office acts as a holding agent or trustee until disposition or legal action requires fund distribution. The fund also includes the state firearms license fees for modernization and validation accounts.

Tax Claim Fund - to account for the collection and payment to individual cities, boroughs, townships and school districts located in Northampton County, of delinquent taxes collected on their behalf.

126

COUNTY OF NORTHAMPTON, PENNSYLVANIASchedule of Changes in Reserved Fund Balances

Employees' Retirement Trust FundFor the Year Ended December 31, 2018

Fund balanceTotal Reserved for

Reserved Employee Fund Balances Contributions

Balances, January 1, 2018 405,681,401$ 71,094,330$

Additions:Employees' contributions 5,627,098 5,627,098 Employer's share of buyback by employee 22,963 - Employer's contribution 9,720,489 - Investment income 7,966,409 2,833,369 Realized gains on sales of investments 12,777,260 - Net decrease in fair value

of investments (40,621,956) -

Total additions (4,507,737) 8,460,467

Total beginning balances and additions 401,173,664 79,554,797

Transfers:Annuities awarded - (5,309,457) Actuarial adjustments - -

Total transfers - (5,309,457)

Total revised balances 401,173,664 74,245,340

Deductions:Professional service fees (43,890) - Fund management services (330,790) - Benefits:

Expenditures - annuities (24,117,812) -

Expenditures - deaths (836,604) -

Total benefits (24,954,416) -

Refunds:Resignations (1,274,795) (1,274,795)

Lump sum partial distributions (768,570) -

Total refunds (2,043,365) (1,274,795)

Total deductions (27,372,461) (1,274,795)

Balances, December 31, 2018 373,801,203$ 72,970,545$

127

Fund BalanceReserved for

Fund Balance Fund Balance Excess ofReserved for Reserved for Market Value

Employer Membership of InvestmentsContributions Annuities Over Cost

99,536,567$ 213,808,446$ 21,242,058$

- - - 22,963 - -

9,720,489 - - (3,399,197) 8,532,237 - 12,777,260 - -

- - (40,621,956)

19,121,515 8,532,237 (40,621,956)

118,658,082 222,340,683 (19,379,898)

(11,713,565) 17,023,022 - (7,694,904) 7,694,904 -

(19,408,469) 24,717,926 -

99,249,613 247,058,609 (19,379,898)

(43,890) - - (330,790) - -

- (24,117,812) -

- (836,604) -

- (24,954,416) -

- - -

- (768,570) -

- (768,570) -

(374,680) (25,722,986) -

98,874,933$ 221,335,623$ (19,379,898)$

128

COUNTY OF NORTHAMPTON, PENNSYLVANIACombining Statement Of Changes in Assets and Liabilities

Agency FundsFor the Year Ended December 31, 2018

Balance Balance 01/01/2018 Additions Deductions 12/31/2018

Civil ASSETSCash 527,207$ 1,368,322$ 1,305,033$ 590,496$

Total assets 527,207$ 1,368,322$ 1,305,033$ 590,496$

LIABILITIESAccounts payable 527,207$ 1,368,322$ 1,305,033$ 590,496$

Total liabilities 527,207$ 1,368,322$ 1,305,033$ 590,496$

Criminal ASSETSCash 1,906,816$ 6,226,900$ 6,159,040$ 1,974,676$

Total assets 1,906,816$ 6,226,900$ 6,159,040$ 1,974,676$

LIABILITIESAccounts payable 1,655,198$ 6,200,973$ 6,107,158$ 1,749,013$ Deposits held in trust 251,618 25,927 51,882 225,663

Total liabilities 1,906,816$ 6,226,900$ 6,159,040$ 1,974,676$

Domestic RelationsASSETSCash 9,047$ 1,097,117$ 1,101,675$ 4,489$

Total assets 9,047$ 1,097,117$ 1,101,675$ 4,489$

LIABILITIESDeposits held in trust 9,047$ 1,097,117$ 1,101,675$ 4,489$


Drug ForfeitureASSETSCash 692,679$ 764,883$ 742,882$ 714,680$

Total assets 692,679$ 764,883$ 742,882$ 714,680$

LIABILITIESDeposits held in trust 692,679$ 772,383$ 750,382$ 714,680$

Total liabilities 692,679$ 772,383$ 750,382$ 714,680$

(Continued)

129

COUNTY OF NORTHAMPTON, PENNSYLVANIACombining Statement Of Changes in Assets and Liabilities, Continued



Gaming Authority RestrictedASSETSCash 819,356$ 434,182$ 1,253,496$ 42$ Receivables 433,906 - 433,906 -

Total assets 1,253,262$ 434,182$ 1,687,402$ 42$

LIABILITIESAccounts payable - $ - $ - $ - $ Deposits held in trust 1,253,262 434,182 1,687,402 42

Total liabilities 1,253,262$ 434,182$ 1,687,402$ 42$

Gaming Authority UncommittedASSETSCash 40,996$ 1,257,853$ 1,244,089$ 54,760$

Total assets 40,996$ 1,257,853$ 1,244,089$ 54,760$

LIABILITIESAccounts payable - $ 1,178,089$ 1,178,089$ - $ Deposits held in trust 40,996 1,259,853 1,246,089 54,760


Gracedale PatientsASSETSCash 1,152,611$ 14,161,659$ 14,202,373$ 1,111,897$ Restricted assets:

Cash 471,594 1,577,474 1,566,431 482,637

Total assets 1,624,205$ 15,739,133$ 15,768,804$ 1,594,534$

LIABILITIESAccounts payable 1,152,611$ 14,161,659$ 14,202,373$ 1,111,897$ Deposits held in trust 471,594 1,577,474 1,566,431 482,637


LicenseASSETSCash 36,545$ 383,861$ 375,752$ 44,654$

Total assets 36,545$ 383,861$ 375,752$ 44,654$

LIABILITIESAccounts payable 36,545$ 391,970$ 383,861$ 44,654$


(Continued)

130




Magisterial District JudgesASSETSCash 362,341$ 8,133,082$ 8,120,286$ 375,137$

Total assets 362,341$ 8,133,082$ 8,120,286$ 375,137$

LIABILITIESAccounts payable 362,341$ 8,133,082$ 8,120,286$ 375,137$


Orphans' CourtASSETSCash 163,737$ 44,033$ 42,286$ 165,484$ Receivables 65 - - 65

Total assets 163,802$ 44,033$ 42,286$ 165,549$

LIABILITIESAccounts payable 65$ - $ - $ 65$ Deposits held in trust 163,737 44,033 42,286 165,484


Prison InmatesASSETSCash 34,907$ 1,658,186$ 1,648,288$ 44,805$ Receivables 4,517 51,953 52,271 4,199

Total assets 39,424$ 1,710,139$ 1,700,559$ 49,004$

LIABILITIESAccounts payable 28,429$ 814,816$ 810,129$ 33,116$ Deposits held in trust 10,995 895,323 890,430 15,888


(Continued)

131




Recorder of DeedsASSETSCash 1,725,324$ 35,695,614$ 35,848,461$ 1,572,477$

Total assets 1,725,324$ 35,695,614$ 35,848,461$ 1,572,477$

LIABILITIESAccounts payable 1,725,324$ 18,219,460$ 18,372,307$ 1,572,477$ Deposits held in trust - 37,035,310 37,035,310 -


Register of WillsASSETSCash 7,375$ 26,232,295$ 26,232,552$ 7,118$ Receivables 23,757 85,547 96,754 12,550

Total assets 31,132$ 26,317,842$ 26,329,306$ 19,668$

LIABILITIESAccounts payable 26,735$ 134,129$ 144,813$ 16,051$ Deposits held in trust 4,397 26,183,714 26,184,494 3,617


SheriffASSETSCash 2,593,361$ 16,147,331$ 16,956,532$ 1,784,160$

Total assets 2,593,361$ 16,147,331$ 16,956,532$ 1,784,160$

LIABILITIESAccounts payable 2,540,942$ 15,916,693$ 16,712,006$ 1,745,629$ Deposits held in trust 52,419 230,638 244,526 38,531


Tax ClaimASSETSCash 804,726$ 9,277,949$ 9,116,585$ 966,090$

Total assets 804,726$ 9,277,949$ 9,116,585$ 966,090$

LIABILITIESAccounts payable 457,137$ 8,309,222$ 8,382,491$ 383,868$ Deposits held in trust 347,589 9,278,704 9,044,071 582,222


(Continued)

132




Totals - All Agency Funds

ASSETSCash 10,877,028$ 122,883,267$ 124,349,330$ 9,410,965$ Restricted assets:

Cash 471,594 1,577,474 1,566,431 482,637 Receivables 462,245 137,500 582,931 16,814

Total assets 11,810,867$ 124,598,241$ 126,498,692$ 9,910,416$

LIABILITIESAccounts payable 8,512,534$ 74,828,415$ 75,718,546$ 7,622,403$ Deposits held in trust 3,298,333 78,834,658 79,844,978 2,288,013


133

STATISTICAL SECTION

This part of the County of Northampton’s annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County’s overall financial health.

Contents Schedule Page

Financial Trends ......................................................................................................................... 1 .................. 135

These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed over time.

Revenue Capacity ...................................................................................................................... 5 .................. 143

These schedules contain information to help the reader assess the County’s most significant local revenue source, property tax.

Debt Capacity ............................................................................................................................ 10 ................. 152

These schedules present 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.

Demographic and Economic Information .................................................................................. 14 ................. 160

These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place and to help make comparisons over time and with other governments.

Operating Information ................................................................................................................ 16 ................. 162

These schedules contain information about the County’s operations and resources to help the reader understand how the County’s financial information relates to the services the County provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from comprehensive annual financial reports for each relevant year.

134


135

Schedule 1

2009 2010 2011 2012 2013

Net investment in capital assets 58,225,411$ 61,884,731$ 68,925,345$ 46,586,463$ 50,495,107$ Restricted 30,392,263 27,345,909 37,982,577 32,110,642 34,184,918 Unrestricted 34,169,314 34,545,547 (3,864,831) 24,712,417 11,841,352

Total net position 122,786,988$ 123,776,187$ 103,043,091$ 103,409,522$ 96,521,377$

2014 2015 2016 2017 2018

Net investment in capital assets 49,615,944$ 49,805,241$ 51,909,155$ 58,669,569$ 65,274,440$ Restricted 28,019,224 29,076,846 33,567,585 39,930,540 41,579,456 Unrestricted (23,182,081) (14,196,226) 11,629,217 (28,346,489) (26,837,423)

Total net position 54,453,087$ 64,685,861$ 97,105,957$ 70,253,620$ 80,016,473$

Primary Government -


Primary Government -


Fiscal Year

COUNTY OF NORTHAMPTON, PENNSYLVANIANet Position by Component

Last Ten Fiscal Years(accrual basis of accounting)

Fiscal Yeara, cb b c

a 2017 values include a prior period adjustment due to the implementation of GASB Statement No. 75 as described in Note #1. b 2014 and 2015 deficit in unrestricted net position is due to the implementation of GASB Statement No. 68.

c 2017 and 2018 deficit in unrestricted net position is due to the implementation of GASB Statement No. 75.

136

Schedule 2

2009 2010 2011 2012

Program ExpensesGeneral government 25,399,766$ 28,522,770$ 31,818,686$ 29,191,658$ Court system and corrections 67,600,191 70,561,854 71,577,814 73,705,920 Public works 8,317,248 6,808,948 6,635,242 7,472,925 Human services 173,899,126 170,256,316 170,330,658 170,239,468 Interest on long-term debt 6,030,535 6,083,299 6,113,475 6,050,714 Capital Projects - - - - Economic development projects 1,189,327 824,576 759,443 -

Total program expenses 282,436,193$ 283,057,763$ 287,235,318$ 286,660,685$

Program RevenuesCharges for services:

General government 9,845,047$ 9,162,643$ 9,567,163$ 10,195,241$ Court system and corrections 10,176,723 10,385,411 10,466,429 10,424,075 Public works 145,311 1,552,621 156,658 319,522 Human services 12,469,582 12,731,265 11,639,062 11,863,459

Operating grants and contributions:General government 3,339,033 3,453,801 2,810,102 4,174,737 Court system and corrections 9,926,753 10,060,713 9,838,581 8,978,127 Public works 873,802 1,261,186 660,155 1,327,223 Human services 152,316,845 148,946,556 151,408,118 147,308,788 Capital Projects - 175,008 1,872,831 143,057

Total program revenues 199,093,096$ 197,729,204$ 198,419,099$ 194,734,229$

Net expense (83,343,097)$ (85,328,559)$ (88,816,219)$ (91,926,456)$

General Revenues and OtherChanges in Net PositionTaxes:

Real estate tax 81,718,239$ 82,857,458$ 82,655,741$ 83,392,696$ Hotel room rental tax 1,170,238 1,375,635 1,708,014 1,963,456

Unrestricted investment earnings 2,380,019 2,084,665 (16,280,632) (1,449,039) Miscellaneous - - - 8,385,774

Total primary government 85,268,496$ 86,317,758$ 68,083,123$ 92,292,887$

Change in Net PositionTotal primary government 1,925,399$ 989,199$ (20,733,096)$ 366,431$

Fiscal YearPrimary Government -


COUNTY OF NORTHAMPTON, PENNSYLVANIAChanges in Net Position

Last Ten Fiscal Years(accrual basis of accounting)

b

Notes: a, Gain (Loss) on sale of capital assets b Prior period adjustment

137

2013 2014 2015 2016 2017 2018

29,865,958$ 29,649,993$ 29,597,282$ 28,673,151$ 33,116,996$ 31,838,710$ 76,188,095 75,295,151 73,934,503 71,642,314 72,991,286 80,702,798 8,438,642 7,714,711 6,286,054 8,490,106 7,170,130 8,708,172

168,778,740 165,626,614 169,597,550 184,224,290 193,249,236 214,720,376 5,735,927 5,649,021 5,404,350 5,100,809 4,792,653 4,449,816

94,913 - 871 8,511 63,977 - - - - - - -

289,102,275$ 283,935,490$ 284,820,610$ 298,139,181$ 311,384,278$ 340,419,872$

11,322,956$ 9,904,855$ 12,325,296$ 14,132,878$ 14,377,787$ 16,372,070$ 10,965,684 10,980,287 10,841,162 11,393,202 10,686,943 11,106,554

479,229 384,734 129,390 101,584 64,846 251,097 14,211,080 13,616,765 14,382,767 14,739,111 13,517,403 14,693,608

3,403,735 3,924,099 2,480,460 3,412,994 3,654,804 3,171,319 9,386,125 9,238,399 8,958,662 9,310,689 9,005,665 9,326,259 1,273,638 1,398,346 1,497,762 3,227,246 3,188,251 1,535,372

143,319,075 141,144,911 147,012,450 175,338,067 179,889,764 190,424,883 - - - - - -

194,361,522$ 190,592,396$ 197,627,949$ 231,655,771$ 234,385,463$ 246,881,162$

(94,740,753)$ (93,343,094)$ (87,192,661)$ (66,483,410)$ (76,998,815)$ (93,538,710)$

84,230,504$ 84,724,463$ 94,651,908$ 95,534,209$ 97,046,640$ 98,213,216$ 2,066,322 2,218,378 2,456,004 2,547,973 2,654,032 2,574,324

429,049 411,628 309,211 810,836 1,629,595 2,502,689 1,126,733 873,519 8,282 10,488 - 11,334

87,852,608$ 88,227,988$ 97,425,405$ 98,903,506$ 101,330,267$ 103,301,563$

(6,888,145)$ (5,115,106)$ 10,232,744$ 32,420,096$ 24,331,452$ 9,762,853$

Fiscal Year

a a a

138

Schedule 3

Fiscal Year

2009 2010 2011 2012

General fundRestricted 10,172,466$ 14,065,951$ 25,005,795$ - $ Assigned 14,482,090 7,096,656 17,424,929 15,733,349 Unassigned 37,133,939 40,978,742 18,055,478 26,880,425

Total general fund 61,788,495$ 62,141,349$ 60,486,202$ 42,613,774$

All other governmental fundsNonspendable 1,370,370$ 1,406,600$ 1,368,164$ 1,427,811$ Restricted 32,456,886 23,979,038 34,149,531 25,098,227 Committed 5,558,302 5,415,704 3,425,449 5,871,515

Total all other governmental funds 39,385,558$ 30,801,342$ 38,943,144$ 32,397,553$

Total fund balances of all governmental funds 101,174,053$ 92,942,691$ 99,429,346$ 75,011,327$

COUNTY OF NORTHAMPTON, PENNSYLVANIAFund Balances, Governmental Funds

Last Ten Fiscal Years(modified accrual basis of accounting)

139

Fiscal Year

2013 2014 2015 2016 2017 2018

- $ - $ - $ - $ - $ - $ 17,495,227 19,790,780 10,282,579 7,989,527 - - 16,578,079 13,715,664 20,167,830 25,287,104 37,757,484 43,144,176

34,073,306$ 33,506,444$ 30,450,409$ 33,276,631$ 37,757,484$ 43,144,176$

1,600,664$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 1,000,000$ 38,554,329 35,055,630 35,252,527 36,578,581 40,346,392 39,839,121 5,703,355 5,003,770 15,583,332 19,900,459 20,921,906 21,403,249

45,858,348$ 41,059,400$ 51,835,859$ 57,479,040$ 62,268,298$ 62,242,370$

79,931,654$ 74,565,844$ 82,286,268$ 90,755,671$ 100,025,782$ 105,386,546$

bb b

140

Schedule 4

Fiscal Year

2009 2010 2011 2012

RevenuesTaxes (see Schedule 5) 83,318,404$ 86,498,226$ 85,810,668$ 86,853,009$ Intergovernmental 166,456,433 163,897,264 166,589,787 161,208,116 Fees, fines, charges and

miscellaneous 32,037,290 33,369,979 31,357,408 32,216,793 Investment income 2,259,576 1,553,364 1,767,390 657,344

Total revenues 284,071,703 285,318,833 285,525,253 280,935,262

ExpendituresGeneral government 27,621,445 30,178,375 30,800,735 27,258,899 Court system and corrections 65,969,842 69,244,954 68,730,844 68,354,270 Public works 8,239,441 6,030,093 5,816,880 5,676,605 Human services 175,150,116 169,417,686 169,560,752 165,110,081 Human services capital lease - - - - Economic development projects 1,189,327 824,576 759,443 - Capital projects 3,329,333 7,139,594 11,734,349 13,195,103 Debt issuance costs 67,423 - 364,635 602,716 Debt service

Principal 3,720,000 4,695,000 4,895,000 73,274,450 Interest 6,046,899 6,019,917 5,910,774 6,268,935


Excess (deficiency) of revenues over (under) expenditures (7,262,123) (8,231,362) (13,048,159) (78,805,797)

Other financing sources (uses)Transfer in 21,842,712 23,876,639 22,738,487 22,738,487 Transfer out (21,842,712) (23,876,639) (22,738,487) (22,738,487) GESA issued - - 19,534,814 - Refunding bonds issued 16,115,000 - - 70,130,000 Payments to refunded bond

escrow agent (8,194,841) - - - Premium (discount) on bonds 278,332 - - 11,532,778 Swaption settlement - - - (27,275,000) Underwriters discount (128,920) - - - Capital lease - - - - Sale of capital items - - - - Prior period adjustments - - - -

Total other financing sources 8,069,571 - 19,534,814 54,387,778

Net change in fund balances 807,448$ (8,231,362)$ 6,486,655$ (24,418,019)$

Debt service as a percentage of noncapital expenditures 3.5% 3.8% 3.8% 23.2%

COUNTY OF NORTHAMPTON, PENNSYLVANIAChanges in Fund Balances, Governmental Funds


a

a Principal payments of $69,945,563 related to current refunding are included in the calculation

141

Fiscal Year

2013 2014 2015 2016 2017 2018

87,566,836$ 87,936,121$ 96,807,476$ 98,567,492$ 100,015,247$ 100,947,478$ 156,471,048 155,558,420 159,173,903 188,417,138 193,047,727 203,541,573

35,960,341 34,632,502 36,542,741 38,435,871 38,121,928 39,635,022 383,224 369,178 276,885 726,315 1,485,695 2,307,394

280,381,449 278,496,221 292,801,005 326,146,816 332,670,597 346,431,467

29,035,392 30,492,466 29,048,333 29,120,969 35,432,904 31,274,779 70,863,054 70,823,307 69,542,867 72,843,560 71,835,513 73,205,426 7,141,521 6,484,121 5,831,573 8,763,331 7,861,565 7,457,644

166,839,233 161,437,555 165,520,729 190,729,141 192,087,510 206,983,391 14,468,731 - - - - -

- - - - - - 2,213,851 3,835,180 2,373,053 4,628,211 4,533,794 9,109,623

94,913 - - - - -

16,828,502 7,019,314 7,291,641 7,669,417 8,064,561 8,494,596 5,647,254 5,694,688 5,472,385 5,172,784 4,873,669 4,545,244

313,132,451 285,786,631 285,080,581 318,927,413 324,689,516 341,070,703

(32,751,002) (7,290,410) 7,720,424 7,219,403 7,981,081 5,360,764

22,738,044 17,017,176 29,436,573 19,914,661 22,191,488 21,207,752 (22,738,044) (17,017,176) (29,436,573) (19,914,661) (22,191,488) (21,207,752)

- - - - - - 19,640,000 - - - - -

- - - - - - 1,987,607 - - - - -

- - - - - - - - - - - -

14,468,731 - - - - - 1,574,991 1,924,600 - - - -

- - - 1,250,000 1,289,030 -

37,671,329 1,924,600 - 1,250,000 1,289,030 -

4,920,327$ (5,365,810)$ 7,720,424$ 8,469,403$ 9,270,111$ 5,360,764$

7.4% 4.6% 4.6% 4.1% 4.1% 4.0%.

142


143

Schedule 5

HotelFiscal Real Estate RoomYear Tax Rental Tax Total

2009 82,148,166$ 1,170,238 83,318,404$ 2010 85,122,591 1,375,635 86,498,226 2011 84,102,654 1,708,014 85,810,668 2012 84,889,553 1,963,456 86,853,009 2013 85,500,514 2,066,322 87,566,836 2014 85,717,743 2,218,378 87,936,121 2015 94,351,472 2,456,004 96,807,476 2016 96,019,519 2,547,973 98,567,492 2017 97,361,215 2,654,032 100,015,247 2018 98,373,154 2,574,324 100,947,478

COUNTY OF NORTHAMPTON, PENNSYLVANIATax Revenues by Source, Governmental Funds


a

a A 3% Hotel Room Rental Tax became effective on October 1, 2000. This tax was enacted under Commonwealth of Pennsylvania Act 28 of 2000. Under this law,

78.5% of gross receipts must be remitted to the regional tourist promotion agency. Council designated the remaining 21.5% to further develop tourism facilities and for

community initiatives that enhance regional tourism. This law was repealed effective August 31, 2005 and was replaced with the following law.

The Hotel Room Rental Tax law was revised effective July 5, 2005 and Council adopted it effective October 2, 2005. Under the revised law, the Hotel Room Rental Tax rate

increased to 4%. Of the total gross receipts, 68.75% must be remitted to the regional tourist promotion agency. The County will receive the remaining 31.25% that must be

used to further develop tourism facilities and for community development initiatives within the County that enhance regional tourism.

144

Schedule 6

Fiscal TotalYear Less: Taxable

Ended Residential Commercial Tax Exempt AssessedDecember 31 Property Property Property Value

2009 6,050,378,500$ 2,518,525,300 713,952,900 7,854,950,900$ 2010 6,089,596,400 2,573,976,300 739,434,700 7,924,138,000 2011 6,119,693,200 2,639,127,100 751,256,600 8,007,563,700 2012 6,149,068,300 2,685,255,000 776,224,600 8,058,098,700 2013 6,221,977,000 2,673,681,000 789,665,000 8,105,993,000 2014 6,263,480,400 2,689,166,400 786,570,400 8,166,076,400 2015 6,300,710,700 2,738,657,000 795,795,500 8,243,572,200 2016 6,336,466,500 2,838,314,500 804,188,600 8,370,592,400 2017 6,368,866,000 2,920,715,000 814,966,700 8,474,614,300 2018 6,409,815,400 3,013,981,200 819,199,900 8,604,596,700

COUNTY OF NORTHAMPTON, PENNSYLVANIAAssessed Value and Estimated Actual Value of Taxable Real Property

Last Ten Fiscal Years

Source: County of Northampton, Assessment Division.

Note: Property in Northampton County is assessed based upon 50 percent of the base year estimated market value. Multiplying the rate for a county, municipal or school

district times the assessed value equals the actual amount of taxes due. Millage rates change yearly based upon individual county, municipal, and school district budget

requirements, as well as any time a countywide revaluation is completed. The last assessment revaluation occurred in 1994 and was effective for the 1995 county and

municipal tax year and the 1995-1996 school tax year.

a Tax rates are per $1,000 of assessed value. Total Direct Tax Rate is one rate. There are no components.

145

Total Estimated AssessedDirect Actual Value As ATax Taxable Percentage OfRate Value Actual Value

10.8 26,447,646,200 29.7%10.8 24,840,558,100 31.9%10.8 23,832,034,800 33.6%10.8 21,488,263,200 37.5%10.8 21,615,981,400 37.5%10.8 21,546,375,600 37.9%11.8 23,419,239,000 35.2%11.8 24,053,426,300 34.8%11.8 24,707,330,100 34.3%11.8 25,917,459,800 33.2%

a

146

Schedule 7

COUNTY OF NORTHAMPTON, PENNSYLVANIAProperty Tax Rates

Direct and Overlapping GovernmentsLast Ten Fiscal Years

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

County Direct Rate 10.80 10.80 10.80 10.80 10.80 10.80 11.80 11.80 11.80 11.80

School District RatesBangor Area 47.77 48.72 49.92 50.57 51.32 52.29 53.32 54.22 54.76 55.31 Bethlehem Area 41.60 44.17 45.75 47.09 48.36 50.99 52.51 54.05 54.55 55.97 Catasauqua Area 50.56 50.56 51.47 51.47 52.14 53.74 53.72 53.44 56.47 58.94 Easton Area 51.122 52.325 53.247 54.460 55.39 57.63 58.99 60.75 62.71 64.14 Nazareth Area 45.55 46.90 47.69 48.55 49.20 50.33 51.08 52.03 53.27 54.49 Northampton Area 43.55 45.00 45.75 46.65 47.71 48.89 50.00 51.24 52.77 53.83 Northern Lehigh 62.873 64.373 64.373 64.373 64.373 57.306 59.136 63.224 61.81 63.93 Pen Argyl Area 42.85 44.38 45.64 46.40 47.26 48.53 50.38 51.89 53.34 54.99 Saucon Valley 51.74 51.74 51.74 51.74 51.74 51.74 51.74 51.74 53.03 54.49 Wilson Area 49.20 49.70 50.00 50.40 50.90 51.30 52.50 54.08 55.81 57.54

City RatesBethlehem 14.10 14.10 14.85 14.85 15.89 16.78 17.15 17.15 17.55 18.22 Easton 24.95 24.95 24.95 24.95 24.95 24.95 24.95 24.95 24.95 24.95

Borough RatesBangor 13.00 14.50 14.50 14.50 13.50 13.50 14.50 15.50 16.00 16.31 Bath 12.50 12.50 12.50 12.50 13.50 13.50 14.75 15.00 15.00 15.00 Chapman 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 East Bangor 10.30 11.47 11.47 11.72 11.72 11.72 12.22 12.47 12.47 12.47 Freemansburg 14.26 14.26 14.26 14.26 14.26 16.26 16.26 16.26 16.26 16.26 Glendon 6.00 11.50 11.50 11.50 12.95 12.95 12.95 12.95 11.64 11.64 Hellertown 16.00 16.00 17.00 17.75 18.75 18.75 20.25 20.25 20.75 21.50 Nazareth 10.20 11.00 11.00 11.50 13.00 15.00 15.00 15.50 15.50 16.00 Northampton 7.60 8.10 8.10 8.10 8.50 9.00 10.00 10.00 10.00 10.00 North Catasauqua 10.70 10.70 10.70 10.70 10.70 10.70 10.70 12.20 12.20 12.20 Pen Argyl 8.45 9.00 9.75 9.75 9.75 9.75 10.25 11.00 11.00 12.00 Portland 11.82 11.82 11.82 11.82 12.50 13.00 13.00 13.00 15.00 20.00 Roseto 8.00 9.00 9.00 9.00 10.50 10.75 10.75 11.75 11.75 11.50 Stockertown 11.50 11.50 11.50 11.50 11.50 13.50 13.50 13.75 13.75 14.00 Tatamy 11.50 11.50 11.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 Walnutport 15.00 15.50 16.00 16.00 18.00 18.00 18.25 18.75 18.75 18.75 West Easton 11.50 11.50 11.50 11.50 14.20 14.20 11.70 11.70 11.70 11.70 Wilson 11.00 11.00 14.50 14.50 14.50 15.50 15.50 17.50 17.50 20.00 Wind Gap 9.75 10.25 11.25 11.25 11.50 11.75 12.25 12.75 14.00 14.50

Year Taxes Are Payable

(Continued)

147


Property Tax Rates, ContinuedDirect and Overlapping Governments


2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Township RatesAllen 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Bethlehem 5.99 5.99 5.99 5.99 5.99 5.99 7.09 7.09 7.09 7.74 Bushkill 5.50 6.00 6.50 6.50 7.50 7.50 7.50 7.50 7.50 7.50 East Allen 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Forks 5.60 5.60 5.60 5.60 6.35 6.35 7.00 7.00 7.00 7.50 Hanover 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 Lehigh 4.68 4.68 4.68 4.68 5.20 5.70 5.70 5.70 5.70 5.70 Lower Mount Bethel 4.60 4.60 4.60 4.60 5.10 5.10 5.10 5.10 5.10 5.10 Lower Nazareth 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 4.15 Lower Saucon 4.14 4.14 4.14 4.14 4.39 5.39 5.39 5.39 5.89 6.39 Moore 1.75 2.00 3.00 3.00 3.00 3.00 4.00 4.00 4.00 4.00 Palmer 6.25 6.25 6.25 6.25 7.00 7.00 7.75 8.25 8.25 8.25 Plainfield 2.00 2.00 5.00 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Upper Mount Bethel 4.25 4.25 4.25 4.25 5.50 5.50 5.50 5.50 6.50 6.50 Upper Nazareth 3.50 3.25 3.25 5.95 5.95 5.95 5.95 5.95 6.45 7.09 Washington 5.00 6.00 6.00 6.00 6.00 7.00 7.00 7.00 7.00 8.00 Williams 1.25 2.00 2.00 2.25 4.00 4.00 2.25 2.25 2.25 2.25

Year Taxes Are Payable


Note: Overlapping rates are those of county, school, and municipal governments that apply to property owners within the County of Northampton. Tax rates are per $1,000

of assessed value.

County Direct Rate is only one rate, there are no components.

148


149

Schedule 8

COUNTY OF NORTHAMPTON, PENNSYLVANIAPrincipal Property Taxpayers

Current Year and Nine Years Ago

Taxable TaxableAssessed Assessed

Taxpayer Value Rank Value Rank

Sands Bethworks Gaming and Retail LLC 152,405,300$ 1 1.77% 77,679,200$ 1 0.99%

Prologis NA3 PA LP, Prologis and Prologis-A4 PA II LLC 59,215,200 2 0.69% 49,970,600 2 0.64%

Duke Realty LP 40,104,300 3 0.47%Bethlehem Commerce CenterLLC 22,257,800 4 0.26%Gemstone Resources LP 19,745,000 5 0.23% 19,745,000 4 0.25%TC LVTC LLC 18,300,500 6 0.21%MPT of Easton Steward LLC 16,668,900 7 0.19% 16,822,200 5 0.21%Fed Ex Ground Package Systems, Inc.

Systems, Inc. 15,966,900 8 0.19%BRE DDR IVA

Southmont PA, LLC 15,604,200 9 0.18%Guardian Life Insurance 15,550,000 10 0.18% 10,792,000 10 0.14%Binney & Smith, Inc. 12,415,200 9 0.16%Moravian Village 14,124,300 6 0.18%Bethlehem Crossing LLCLiberty Property LP 28,566,600 3 0.36%PR Palmer Park Mall LP 13,728,700 7 0.18%Essroc Materials, Inc. 13,471,900 8 0.17%

____________ _____ ____________ _____ Total 375,818,100$ 4.37% 257,315,700$ 3.28%____________ _____ ____________ _____ ____________ _____ ____________ _____

Value

2018Percentage ofTotal Taxable

AssessedValue

2009Percentage ofTotal Taxable

Assessed


150

Schedule 9

Fiscal Taxes LeviedYear for the Total

Ended Fiscal Year AdjustedDecember 31 (Original Levy) Adjustments Levy Amount

2009 82,333,968$ 746,487 83,080,455$ 78,583,947$ 95.45%2010 84,384,655 534,974 84,919,629 81,330,189 96.38%2011 85,123,654 (133,625) 84,990,029 81,238,005 95.44%2012 86,003,445 56,136 86,059,581 82,540,216 95.97%2013 86,543,163 (373,297) 86,169,866 83,138,994 96.07%2014 87,058,662 (407,753) 86,650,909 83,622,494 96.05%2015 96,234,910 (457,010) 95,777,900 92,213,897 95.82%2016 97,148,656 168,484 97,317,140 93,850,144 96.60%2017 98,644,833 (97,033) 98,547,800 95,317,187 96.63%2018 99,997,924 (77,398) 99,920,526 96,658,159 96.66%

of OriginalLevy

PercentageFiscal Year of the Levy

Collected within the

COUNTY OF NORTHAMPTON, PENNSYLVANIAProperty Tax Levies and Collections


Source: County of Northampton, Revenue Division.

Note: The information in this schedule relates to the County’s own property tax levies, and does not include those it collects on behalf of other governments.

151

Collections inSubsequent

Years Amount

4,481,163 83,065,110$ 99.98%3,571,915 84,902,104 99.98%3,730,680 84,968,685 99.97%3,495,257 86,035,473 99.97%2,995,208 86,134,202 99.96%2,978,762 86,601,256 99.94%3,490,862 95,704,759 99.92%3,298,247 97,148,391 99.83%2,033,358 97,350,545 98.79%

- 96,658,159 96.74%

of AdjustedLevy

Total Collections to DatePercentage

152

Schedule 10

General LeaseFiscal Obligation Rental Capital Bond Bond Year Bond Bond Debt GESA Lease Discount Premium

2009 28,240,000$ 97,100,000$ -$ -$ (1,394,953)$ 757,455$ 2010 26,205,000 94,440,000 - - (1,308,672) 720,742 2011 24,110,000 91,640,000 19,534,814 - (1,222,391) 684,028 2012 92,090,000 21,170,000 18,880,364 - (1,568,824) 11,150,304 2013 99,080,000 18,065,000 17,806,862 14,468,731 (1,347,397) 12,444,152 2014 96,480,000 14,805,000 16,647,548 14,468,731 (1,263,796) 11,632,553 2015 93,865,000 11,375,000 15,400,907 14,468,731 (1,180,195) 10,820,954 2016 91,165,000 7,770,000 14,036,490 14,468,731 (1,096,594) 10,009,355 2017 88,390,000 3,980,000 12,536,929 14,468,731 (1,012,993) 9,197,756 2018 85,520,000 - 10,892,333 14,468,731 (929,392) 8,386,157


COUNTY OF NORTHAMPTON, PENNSYLVANIARatios of Outstanding Debt by Type


Notes: Details regarding the County’s outstanding debt can be found in the notes to the financial statements.

a Population and personal income data can be found in Schedule 14.

b See Schedule 6 for property value information.

153

Total DebtPrimary Per

Government Capita

124,702,502$ 1.13% 0.47% 417.08 120,057,070 1.06% 0.48% 403.23 134,746,451 1.16% 0.57% 451.45 141,721,844 1.12% 0.66% 473.56 160,517,348 1.26% 0.74% 535.43 152,770,036 1.19% 0.71% 508.13 144,750,397 1.13% 0.62% 481.20 136,352,982 1.07% 0.57% 451.06 127,560,423 1.00% 0.52% 420.43 118,337,829 0.92% 0.46% 388.24

PropertyOf Taxable

Actual ValuePercentage of

Percentageof Personal

Income a a

b

154


155

Schedule 11

General LeaseFiscal Obligation Rental PerYear Bond Bond Debt Total Capita

2009 $ 27,602,502 $ 97,100,000 $ 124,702,502 0.47% 417.08$ 2010 25,617,070 94,440,000 120,057,070 0.48% 403.23 2011 23,571,637 91,640,000 115,211,637 0.48% 386.00 2012 101,671,480 21,170,000 122,841,480 0.57% 410.47 2013 110,176,755 18,065,000 128,241,755 0.59% 427.77 2014 106,848,757 14,805,000 121,653,757 0.56% 404.63 2015 103,505,759 11,375,000 114,880,759 0.49% 381.90 2016 100,077,761 7,770,000 107,847,761 0.45% 356.76 2017 96,574,763 3,980,000 100,554,763 0.41% 331.42 2018 92,976,765 - 92,976,765 0.36% 305.03

Actual Valueof TaxableProperty

COUNTY OF NORTHAMPTON, PENNSYLVANIARatios of General Bonded Debt Outstanding


Percentage ofa

b

Note: All debt included in this schedule is to be repaid with general government resources. Details regarding the County’s outstanding debt can be found in the notes to the

financial statements.

a See Schedule 6 for property value information.

b Population data can be found in Schedule 14.

156

Schedule 12

COUNTY OF NORTHAMPTON, PENNSYLVANIADirect and Overlapping Governmental Activities Debt

As of December 31, 2018EstimatedShare of

Estimated Direct andDebt Percentage Overlapping

Outstanding Applicable Debt

School DistrictsBangor Area 40,695,760$ 100% 40,695,760$ Bethlehem Area 238,049,396 77% 183,298,035 Catasauqua Area 39,022,341 19% 7,414,245 Easton Area 156,640,267 98% 153,507,462 Nazareth Area 93,370,917 100% 93,370,917 Northampton Area 120,093,603 100% 120,093,603 Northern Lehigh 24,183,440 18% 4,353,019 Pen Argyl Area - 100% - Saucon Valley 12,710,000 100% 12,710,000 Wilson Area 26,222,490 100% 26,222,490

Other SchoolsBethlehem Area Vocational

Technical 2,260,000 77% 1,740,200 Career Institute of Technology - 100% - Northampton Community College 43,140,896 41% 17,687,767

CitiesBethlehem 109,027,000 79% 86,131,330 Easton 61,297,085 100% 61,297,085

TownshipsAllen - 100% - Bethlehem 12,597,815 100% 12,597,815 Bushkill 795,237 100% 795,237 East Allen - 100% - Forks 6,415,000 100% 6,415,000 Hanover - 100% - Lehigh 215,493 100% 215,493 Lower Mount Bethel 77,190 100% 77,190 Lower Nazareth 458,613 100% 458,613 Lower Saucon 1,028,230 100% 1,028,230 Moore - 100% - Palmer 15,685,974 100% 15,685,974 Plainfield - 100% - Upper Mount Bethel 111,882 100% 111,882 Upper Nazareth - 100% - Washington 1,018,219 100% 1,018,219 Williams 2,529,000 100% 2,529,000

Governmental Unita b

c

c

c

c

d

de

(Continued)

157


Direct and Overlapping Governmental Activities Debt - ContinuedAs of December 31, 2018

EstimatedEstimated Share of

Debt Percentage OverlappingOutstanding Applicable Debt

BoroughsBangor 2,075,000$ 100% 2,075,000$ Bath 818,145 100% 818,145 Chapman - 100% - East Bangor - 100% - Freemansburg 53,926 100% 53,926 Glendon 23,955 100% 23,955 Hellertown 1,500,802 100% 1,500,802 Nazareth 4,298,000 100% 4,298,000 Northampton 1,005,000 100% 1,005,000 North Catasauqua 450,898 100% 450,898 Pen Argyl 615,151 100% 615,151 Portland 1,782,330 100% 1,782,330 Roseto 43,059 100% 43,059 Stockertown - 100% - Tatamy - 100% - Walnutport 2,268,000 100% 2,268,000 West Easton - 100% - Wilson - 100% - Wind Gap 1,271,285 100% 1,271,285

Subtotal, overlapping debt 865,660,117

County of Northampton direct debt, net 118,337,829

Total direct and overlapping debt 983,997,946$

Governmental Unita b

Sources: The individual governmental units provided the outstanding debt and percent applicable to the County of Northampton.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the County. This schedule estimates the portion of the

outstanding debt of those overlapping governments that is borne by the residents and businesses of the County of Northampton. This process recognizes that, when

considering the government’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.

However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

a Gross principal debt less state aid. The amounts do not include self-liquidating water and sewer debt.

b The estimated percentage of debt applicable to the County of Northampton was provided by the individual governmental units.

c Governmental unit extends into Lehigh County.

d Governmental unit extends into Bucks County.

e Portion of debt relates to Monroe County.

158

Schedule 13

2009 2010 2011 2012

Borrowing base revenues:Two years prior 285,267,104$ 291,670,538$ 283,784,899$ 284,993,099$ Prior year 291,670,538 283,784,899 284,993,099 283,563,960 Current year 283,784,899 284,993,099 283,563,960 280,652,237

Total borrowing base revenues 860,722,541$ 860,448,536$ 852,341,958$ 849,209,296$

Average borrowing base revenues 286,907,514$ 286,816,179$ 284,113,986$ 283,069,765$

Limit for non-electoral debt:Average borrowing base revenues 286,907,514$ 286,816,179$ 284,113,986$ 283,069,765$ Debt limit percent x 300% x 300% x 300% x 300%

Debt limit 860,722,541 860,448,536 852,341,958 849,209,296 Total amount of debt applicable to

debt limit 27,602,502 25,617,070 23,571,637 101,671,480

Legal debt margin 833,120,039$ 834,831,466$ 828,770,321$ 747,537,816$

Total net debt applicable to the limitas a percentage of debt limit 3.21% 2.98% 2.77% 11.97%

Limit for net non-electoral and lease rental debt:

Average borrowing base revenues 286,907,514$ 286,816,179$ 284,113,986$ 283,069,765$ Debt limit percent x 400% x 400% x 400% x 400%

Debt limit 1,147,630,056 1,147,264,716 1,136,455,944 1,132,279,060 Total amount of debt applicable to

debt limit 120,950,000 120,645,000 135,284,814 132,140,364

Legal debt margin 1,026,680,056$ 1,026,619,716$ 1,001,171,130$ 1,000,138,696$

Total net debt applicable to the limitas a percentage of debt limit 10.54% 10.52% 11.90% 11.67%

COUNTY OF NORTHAMPTON, PENNSYLVANIALegal Debt Margin Information


Fiscal Year

Source: Local Government Unit Debt Act 185 of 1972, as amended

Note: Under state finance law, the County of Northampton’s outstanding non-electoral debt should not exceed 300% of the three-year average of General, Special Revenue

and Permanent funds’ revenue. The outstanding net non-electoral and lease rental debt should not exceed 400% of the three-year average of General, Special Revenue

and Permanent funds’ revenue. By law, the net non-electoral and lease rental debt may be offset by amounts set aside for repaying general obligation bonds.

159

2013 2014 2015 2016 2017 2018

283,563,960$ 280,652,237$ 280,146,587$ 278,364,168$ 292,775,315$ 325,952,865$ 280,652,237 280,146,587 278,364,168 292,775,315 325,952,865 332,309,312 280,146,587 278,364,168 292,775,315 325,952,865 332,309,312 346,262,168

844,362,784$ 839,162,992$ 851,286,070$ 897,092,348$ 951,037,492$ 1,004,524,345$

281,454,261$ 279,720,997$ 283,762,023$ 299,030,783$ 317,012,497$ 334,841,448$

281,454,261$ 279,720,997$ 283,762,023$ 299,030,783$ 317,012,497$ 334,841,448$ x 300% x 300% x 300% x 300% x 300% x 300%

844,362,784 839,162,992 851,286,070 897,092,348 951,037,492 1,004,524,345

110,176,755 106,848,757 103,505,759 100,077,761 96,574,763 92,976,765

734,186,029$ 732,314,235$ 747,780,311$ 797,014,587$ 854,462,729$ 911,547,580$

13.05% 12.73% 12.16% 11.16% 10.15% 9.26%

281,454,261$ 279,720,997$ 283,762,023$ 299,030,783$ 317,012,497$ 334,841,448$ x 400% x 400% x 400% x 400% x 400% x 400%

1,125,817,044 1,118,883,988 1,135,048,092 1,196,123,132 1,268,049,988 1,339,365,792

149,420,593 152,770,036 144,750,397 136,352,982 127,560,423 118,337,829

976,396,451$ 966,113,952$ 990,297,695$ 1,059,770,150$ 1,140,489,565$ 1,221,027,963$

13.27% 13.65% 12.75% 11.40% 10.06% 8.84%

Fiscal Year

160

Schedule 14

COUNTY OF NORTHAMPTON, PENNSYLVANIADemographic and Economic Statistics


Personal PerIncome Capita Local

Fiscal (thousands Personal Median School UnemploymentYear Population Income Age Enrollment Rate

2009 298,990 11,033,895 37,302 40.20 46,187 8.32010 297,735 11,339,586 37,522 41.00 45,976 9.02011 298,476 11,663,742 39,078 41.60 46,037 8.62012 299,267 12,639,012 42,233 41.60 45,274 8.32013 299,791 12,787,209 47,727 41.60 47,899 7.82014 300,654 12,790,565 47,967 41.70 47,689 6.02015 300,813 12,791,904 49,786 42.20 47,735 5.22016 302,294 12,784,227 51,275 41.60 47,877 5.32017 303,405 12,805,537 52,096 42.60 48,131 4.92018 304,807 12,807,060 55,349 * 48,402 4.4

of dollars)a

a

a b c d

Sources:

a Estimates updated by U.S. Department of Commerce, Bureau of Economic Analysis, Office of Regional Economic Accounts.

b U.S. Census Bureau, American Community Survey

c Individual public school districts based on fall enrollments. This figure does not include Catasauqua, Northern Lehigh, Bethlehem Area Vocational Technical School or

Career Institute of Technology.

d Commonwealth of Pennsylvania, Department of Labor and Industry, Regional Labor Market Analysis; Pennsylvania Employment Security

Note: Prior years’ data has been updated to the most current information.

* The information is not available by the report publication date.

161

Schedule 15

COUNTY OF NORTHAMPTON, PENNSYLVANIAPrincipal Employers

Current Year and Nine Years Ago

Employer Rank Rank

St. Lukes Network 2,773 1 1.75%Sands Bethworks Gaming LLC 2,368 2 1.49%Northampton County 2,075 3 1.31% 2,250 1 1.47%Lehigh University 1,911 4 1.20% 1,792 3 1.17%Bethlehem Area School District 1,891 5 1.19% 2,072 2 1.35%Northampton Community College 1,753 6 1.10% 1,570 4 1.02%Lafayette College 1,342 7 0.85%Colonial Intermediate Unit No 20 1,285 8 0.81%Guardian Life Insurance 1,219 9 0.77% 1,402 5 0.92%Crayola LLC 1,162 10 0.73% 1,200 8 0.78%Giant Food Stores LLC 1,194 9 0.78%Northampton Hospital Corporation 1,274 7 0.83%Easton Area School District 1,400 6 0.91%Wegmans Food Markets, Inc. 1,020 10 0.67%______ _____ ______ _____ Total 17,779 11.20% 15,174 9.90%______ _____ ______ _____ ______ _____ ______ _____

EmploymentCounty

EmployeesEmployees EmploymentCounty

2009Percentage

of TotalPercentage

of Total

2018

Source: Individual business’ human resources departments

162

Schedule 16

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

General GovernmentCounty Council 13 13 13 13 13 13 13 13 13 14County Executive 2 2 2 2 2 2 2 2 2 2Controller 9 9 9 9 9 9 9 9 9 9Solicitor 7 7 7 7 9 9 9 9 9 9Community and Economic

Development 7 7 7 8 9 9 9 9 8 8Human Resources 12 12 12 12 13 16 22 15 15 15Fiscal Affairs 64 64 61 60 60 60 60 62 64 63Administration 109 93 93 101 110 110 104 110 138 131

Sub-total 223 207 204 212 225 228 228 229 258 251

Court System andCorrections

District Attorney 51 50 52 53 54 54 54 54 54 55Sheriff 75 75 71 69 76 77 74 77 77 78Coroner 6 6 6 6 8 8 8 8 11 11Public Defender 20 20 20 20 21 22 21 21 21 21Court Services 55 55 52 52 52 53 48 52 53 48Court Administration 321 321 322 322 333 331 335 334 335 336Corrections 271 271 269 269 271 273 259 275 280 274

Sub-total 799 798 792 791 815 818 799 821 831 823

Public Works 79 84 84 89 93 94 96 98 101 101

Health and HumanServices 1053 1037 990 1008 1023 1022 1015 1020 1029 1050

Total 2154 2126 2070 2100 2156 2162 2138 2168 2219 2225

FunctionFull-time Equivalent Employees as of December 31

COUNTY OF NORTHAMPTON, PENNSYLVANIAFull-time Equivalent County Government Employees by Function


Source: County of Northampton, Department of Human Resources

Note: Employment figures are expressed as full-time equivalent employment, a computed statistic representing the number of full-time employees that could have been

employed if the reported number of hours worked by part-time employees had been worked by full-time employees. This statistic is calculated by dividing the anticipated

part-time hours to be scheduled by the standard number of hours for full-time employees and then adding the resulting quotient to the number of full-time employees.

163

Schedule 17

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

General GovernmentFiscal Affairs

Property transfers recorded 6,548 5,924 5,907 5,470 6,288 6,806 7,392 7,681 7,850 7,907Subdivision plans filed 205 163 128 100 105 124 125 126 96 114Building permits received 3,128 3,217 3,417 3,029 3,249 2,482 2,786 2,376 2,520 2,782

AdministrationGeneral election information

Registered voters 196,308 198,993 201,549 209,382 198,793 195,861 195,705 211,449 202,315 209,313Votes cast 41,605 86,786 37,101 132,231 39,029 75,035 41,389 146,381 46,526 117,059Percent of votes cast 21.2% 43.6% 18.4% 63.2% 19.6% 38.3% 21.1% 69.2% 23.0% 55.9%

Court System and CorrectionsCourt Services

Criminal cases filed 4,292 4,411 4,161 4,037 4,255 3,988 4,113 4,316 4,169 4,297Civil cases filed 3,574 3,720 3,682 3,939 3,480 3,208 3,238 3,546 3,622 3,811Protection from abuse

cases filed 988 1,081 1,167 1,030 997 960 1,021 1,098 1,266 1,398Estates and wills probated 1,632 1,731 1,786 1,693 1,493 1,588 1,571 1,497 1,423 1,512Marriage licenses issued 1,278 1,351 1,473 1,340 1,460 1,665 1,606 1,699 1,679 1,649Child adoptions and

relinquishments 114 118 114 121 181 163 114 135 127 146Court Administration

Criminal cases tried 47 40 31 25 29 10 13 24 17 21Criminal case negotiated

plea settlements 2,917 2,859 2,713 2,614 2,605 2,665 2,624 2,866 2,924 3,079Accelerated rehabilitative

disposition (ARD) cases 1,478 1,327 1,604 1,604 1,457 1,334 1,228 1,487 1,696 1,751New civil arbitration filings 229 219 185 183 113 231 89 136 117 123Civil cases tried 56 68 73 50 71 56 72 58 39 36Civil cases settled 157 305 278 350 43 69 16 322 496 511District judge case filings 72,449 70,138 65,636 64,634 62,466 53,308 51,285 54,497 51,285 53,743Domestic relations active cases 9,734 9,500 9,400 9,165 8,933 8,810 8,655 8,298 9,188 10,012New juvenile probation cases 1,025 844 848 869 683 668 851 638 701 892New adult probation cases 891 1,050 935 963 887 1,049 1,139 1,147 1,620 1,355New parole cases 1,240 1,260 1,163 1,118 1,200 1,162 1,215 838 1,101 1,054

New intermediate punishmentcases 263 207 179 227 192 179 207 242 438 414

Juvenile adjudicated careplacement days 15,015 18,005 18,830 16,733 13,932 14,079 15,986 13,255 11,855 12,863

CorrectionsAverage daily population 809 801 792 719 739 699 701 710 716 686

High 862 841 827 783 811 758 709 796 774 728Low 746 739 727 662 687 654 580 631 672 636

Annual admissions 4,168 4,114 3,901 3,833 3,913 3,912 3,956 4,134 4,206 4,172

Public WorksPark reservations 281 274 262 272 374 372 485 441 490 484

COUNTY OF NORTHAMPTON, PENNSYLVANIAOperating Indicators by Function


Fiscal Year

Function *

(Continued)

164

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Human ServicesGrants

Homeless assistance:Rent subsidies 56 17 20 5 16 13 22 27 20 19Additional nights of shelter 187 277 406 93 105 88 178 25 944 1,363

Home-delivered meals 8,648 10,198 10,641 10,717 11,670 12,234 14,097 15,320 13,902 17,641Homemaker services hours 435 354 158 215 169 48 133 177 381 301Training (job/other) hours 1,425 1,650 689 821 78 78 807 326 299 366Information requests 6,521 6,469 4,948 3,848 1,480 1,653 1,903 2,755 4,281 6,424

Area Agency on AgingCase management clients 1,683 1,588 1,683 1,513 1,619 1,063 914 1,166 1,275 927Meals provided 196,342 189,490 170,423 184,236 201,166 220,446 236,198 202,144 172,448 174,114In-home services clients 1,196 1,123 938 678 680 639 701 927 856 975Adult day care clients 56 61 37 30 30 30 28 32 17 16Protective services reports - 69 108 108 160 181 186 406 526 765

Drug and AlcoholPrevention clients 14,472 13,963 3,193 4,340 8,479 13,107 19,184 34,099 24,537 22,788Intake evaluations 1,304 1,399 1,160 1,326 1,229 1,409 1,961 2,131 1,799 1,460Intervention clients 485 529 620 594 542 517 372 347 696 758Detoxification

Clients 69 62 46 62 58 80 48 49 68 88Days 296 270 218 251 253 349 205 199 280 341

Inpatient treatmentClients 187 228 179 135 216 146 87 77 75 114Days 3,692 5,838 4,454 2,763 4,967 1,939 1,117 1,347 1,094 1,524

Outpatient treatment clients 674 768 660 631 675 600 518 369 414 563Methadone clients 81 75 81 70 133 154 161 117 118 106Transitional housing

Clients 26 34 32 29 50 51 137 55 65 54Days 1,623 2,342 1,629 1,343 3,026 2,485 3,444 2,590 3,898 4,860

Children, Youth and Families

Children served 6,375 6,779 7,686 6,801 7,891 7,187 7,351 7,481 7,540 7,645

Placement days 80,308 79,406 82,779 71,876 74,229 97,254 98,812 93,132 86,656 103,256

Child abuse reports 692 697 705 696 700 728 1,080 1,099 1,291 1,234

Developmental Programs

Adult development

hours 304,455 290,756 312,959 352,439 383,623 416,472 416,334 395,194 492,448 *clients 54

Supported employment

hours 11,093 15,266 11,823 12,591 12,027 10,584 11,525 11,099 12,368 *clients 23

Residential services clients 220 249 245 246 250 214 256 528 273 20

Early intervention clients 947 1,201 1,357 1,007 1,403 1,070 890 1,150 1,252 1,685

Family support services 360 332 365 345 265 205 268 243 205 218

Gracedale Nursing Home

Days of care 240,096 232,410 220,706 222,323 231,737 239,285 243,736 244,216 241,978 247,012

Function

COUNTY OF NORTHAMPTON, PENNSYLVANIAOperating Indicators by Function, Continued


Fiscal Year

*

* Beginning in 2018 data is being reported in unduplicated clients, not hours.

(Continued)

165

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Human Services, continuedMental Health

Emergency/crisis interventionhours 2,088 2,245 1,815 1,629 1,505 1,148 1,528 1,782 1,347 *clients 935

Community residential days 24,989 24,244 37,159 37,427 31,254 34,391 34,256 35,535 37,240 *clients 208

Community employmenthours 26,385 22,689 20,418 13,847 12,677 12,540 12,554 13,238 6,312 *clients 83

Service case managementhours 66,185 67,714 65,331 81,606 74,200 61,417 37,518 41,031 13,020 *clients 1,559

Outpatient hours/clientshours 12,494 11,064 13,803 7,538 12,193 9,322 9,777 12,086 10,565 *clients 5,363

Family support hours/clientshours 4,926 4,484 3,357 3,320 2,855 2,957 3,454 3,021 1,555 *clients 12

Crisis residential hours/clientshours 9,456 9,736 9,824 11,536 7,960 9,320 14,648 8,240 4,016 *clients 30

HealthChoices Inpatient psychiatric

Members served 778 809 810 822 823 863 823 1,002 985 1,026Days of service 9,498 10,257 12,042 11,709 12,082 14,075 13,341 17,168 15,878 17,333

Inpatient drug and alcoholMembers served 26 21 22 20 27 40 41 47 52 62Days of service 157 147 205 119 145 284 275 351 363 456

Non-hospital drug and alcoholMembers served 381 418 430 445 449 480 617 727 815 835Days of service 12,396 14,809 16,255 16,604 15,766 18,388 22,763 28,685 36,702 33,694

Outpatient psychiatricMembers served 6,215 6,764 7,055 7,362 7,176 7,676 8,038 7,807 8,292 8,792Units of service 217,059 202,131 211,278 217,867 217,425 223,031 202,960 216,570 233,038 234,313

Outpatient drug and alcoholMembers served 864 830 817 880 831 949 1,223 1,454 1,505 1,595Units of service 93,170 49,386 46,696 43,048 33,872 41,242 44,262 113,432 123,929 135,687

Behavioral health rehabilitationservices

Members served 725 808 869 920 919 899 842 844 952 969Units of service 324,725 317,702 372,787 390,863 368,797 346,204 314,462 327,436 373,027 378,438

Residential treatment facility -JCAHO

Members served 66 53 62 40 34 32 37 38 36 40Days of service 11,016 7,332 8,371 6,854 4,785 4,268 5,561 5,380 6,393 5,581

Residential treatment facility -Non JCAHO

Members served 28 28 20 22 19 17 13 10 6 9Days of service 2,875 3,410 2,561 2,158 3,439 2,687 2,354 1,733 1,005 1,546

AncillaryMembers served 179 193 180 166 373 319 197 97 95 48Units of service 1,977 1,619 2,029 1,520 8,704 4,057 1,066 555 578 176

Community supportMembers served 1,241 1,383 1,297 1,224 1,213 1,206 1,222 1,331 1,393 1,468Units of service 237,551 215,824 199,984 183,176 150,108 160,978 151,951 184,382 198,624 208,899

OtherMembers served 1,359 1,461 1,327 1,478 1,472 1,511 1,772 2,183 2,578 2,948Units of service 163,335 109,549 114,117 115,034 117,337 135,017 177,936 204,917 234,234 244,382

Members served 7,923 8,546 8,835 9,168 9,058 9,608 10,305 10,705 11,465 12,064Membership 30,686 32,356 32,649 33,534 33,895 35,546 45,994 45,994 49,342 49,526

Function

COUNTY OF NORTHAMPTON, PENNSYLVANIAOperating Indicators by Function, Continued

Last Ten Fiscal YearsFiscal Year

*

* Beginning in 2018 data is being reported in unduplicated clients, not hours. Source: Various government departments.

166

Schedule 18

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

General GovernmentFiscal Affairs

Motor vehicles 1 1 1 1 1 1 1 1 1 1Administration

Motor vehicles 13 12 11 10 10 13 14 13 14 16

Court System and CorrectionsDistrict Attorney

Motor vehicles 8 8 8 8 8 8 8 8 9 8Sheriff

Motor vehicles 27 23 24 25 25 25 25 25 25 25Coroner

Motor vehicles 3 3 3 3 3 3 3 3 4 4Court Administration

Motor vehicles 5 5 5 6 6 6 6 6 6 5Corrections

Motor vehicles 5 4 4 5 5 5 5 5 5 6

Public WorksBridges

County-owned bridges 115 115 115 115 115 115 115 115 82 82Inter-county bridges 4 4 4 4 4 4 4 4 4 4Motor vehicles 3 3 3 3 3 3 3 3 3 3

ParksNumber of parks 15 15 15 15 15 15 15 15 15 17Park acreage 2,027 2,027 2,027 2,027 2,027 2,027 2,027 2,027 2,027 2,027Motor vehicles 9 10 10 10 10 9 9 9 9 9

Maintenance and AdministrationOffice buildings 13 13 13 14 13 13 14 14 14 14Storage or maintenance

buildings 22 22 29 29 28 28 29 29 29 26Motor vehicles 12 9 7 8 7 7 7 7 7 7

Human ServicesMotor vehicles 20 20 20 20 20 18 16 16 16 16

Function

COUNTY OF NORTHAMPTON, PENNSYLVANIACapital Asset Statistics by Function


Fiscal Year

Source: Various government departments.

Comprehensive Annual Financial Report...conducted of all books and accounts, financial records and...

Documents

Transcript of Comprehensive Annual Financial Report...conducted of all books and accounts, financial records and...