HOUSTON COUNTY COMMISSION

DOTHAN, ALABAMA

Annual Financial & Operations Report

For The Fiscal Year Ended

September 30, 2013

Prepared By:

William J. Dempsey Chief Administrative Officer

www.houstoncounty.org

HOUSTON COUNTY COMMISSION

Annual Financial Report

Fiscal Year Ended

September 30, 2013

Chief Administrative Officer William J. Dempsey

BOARD OF COMMISSIONERS

MARK S. CULVER CHAIRMAN

CURTIS HARVEY

COMMISSIONER, DISTRICT 1

DOUG SINQUEFIELD COMMISSIONER, DISTRICT 2

JACKIE BATTLES

COMMISSIONER, DISTRICT 3

MELINDA MCCLENDON COMMISSIONER, DISTRICT 4

Citizens of Houston County

Houston County Commissioners

Other parties interested in the Financial Status of Houston County

We are pleased to present Houston County’s Annual Financial Report for the year ending September 30, 2013. We believe that this report is an

excellent base of information for those interested in financial and statistical information for Houston County. The Annual Financial Report is

prepared from the county’s financial and accounting records and is unaudited. Responsibility for both the accuracy of the data and the

completeness of the information presented here rests with the County Finance and Administration Departments. We believe that every effort has

been made to insure that the numbers presented here fairly represent the activity and fund balances of the various funds handled by the County.

The State Examiners of Public Accounts audits the county’s records on an annual basis. The Audit Report for the period ending September 30,

2012 was an excellent report for Houston County and was an unqualified report that indicated no significant findings against Houston County.

ABOUT HOUSTON COUNTY

Houston County, the youngest county in Alabama, was established February 9, 1903 from portions of Henry, Geneva, and Dale Counties.

Located in the southeastern corner of Alabama, Houston County is bordered on the east by the state of Georgia at the Chattahoochee River and on

the south by the state of Florida. The County covers 582 square miles. The Little Choctawhatchee River forms the boundary in the northwestern

part of the county with Dale County. Houston County lies on the Coastal Plain with an elevation that ranges from 120 feet above sea level in the

southeastern corner to about 345 feet above sea level at a point near Webb in the North Central part of the County. The Topography is mainly level

to gently sloping but scattered hilly sections are found in the northeastern part of the County. The 2012 census-estimated population is 103,402

people. This is a 16.4% population increase since 2000.

Houston County is primarily agricultural with peanuts, cotton, and corn being the principal crops. Small grains, melons, and vegetables are also

abundantly grown in the County. Beef cattle, hogs, and dairy cattle are the main livestock enterprises in the County. Rainfall averages 56 inches

annually.

The City of Dothan is the largest municipality in Houston County and is one of the largest employers with over 900 employees. Dothan is

a regional trade center for the Alabama, Georgia, and Florida Tri State Area. Other municipalities in Houston County are Ashford, Kinsey,

Cottonwood, Columbia, Taylor, Rehobeth, Gordon, Cowarts, Avon, Webb, and Madrid. A number of other unincorporated communities exist

within the County such as Wicksburg and Bay Springs.

HOUSTON COUNTY COMMISSION

Annual Financial Report

Fiscal Year Ended September 30, 2013

Page 2 of 3

ECONOMIC OUTLOOK: Houston County is a progressive county with outstanding regional hospitals, the largest of which employees

more than 2,000 people. The business mix of Manufacturing, Retail, Service, Medical, Agriculture and Agriculture related companies and the

good economy in the area help keep unemployment at low levels. Expansion of local businesses and the establishment of new businesses are

occurring at a healthy pace. The opening of The Dothan Pavilion, a large shopping complex with many new stores, continues to bring regional

shoppers and additional merchants and restaurants into Houston County. The Houston County Distribution Park located in the southern part

of the County continues to seek additional businesses. The close proximity of this Distribution Park to Interstate 10 makes it an attractive

location. The continued expansion and development of this park will add good jobs for area residents in the years ahead.

SIGNIFICANT OCCURRENCES IN FISCAL YEAR 2012 – 2013

• County Wide sales tax collections increased from $16,423,529 in 2011/2012 to $16,631,069 in 2012/2013. This is an increase of 1.26%

and collections now exceed the pre-economic slump collection rates of 2007/2008 which were $16,563,808.

• A new telephone system for the county was installed.

• BBVA Compass was awarded a 3 year banking service contract with the county for 2013-2015.

• Entered into agreements with Chevron, Trane and NORESCO, all Energy Service Companies, to perform preliminary energy audits.

• Barkley Kirkland was appointed the new County Engineer

• Steve Carlisle was appointed the new EMA Director.

• The first annual employee appreciation dinner occurred in December 2012.

• The county refinanced the 2004 Bond

• Changed the county dental insurance plan from local to the State Employees Plan.

• Houston County’s Bond rating was upgraded to: Moody’s Aa2 and S&P AA-.

HOUSTON COUNTY COMMISSION

Annual Financial Report

Fiscal Year Ended September 30, 2013

Page 3 of 3

Respectfully Submitted,

Mark Culver William J. Dempsey

Chairman, Commission Chief Administrative Officer

ROAD AND BRIDGE MAJOR PROJECTS IN FISCAL YEAR 2012-2013

• Resurfaced Prevatt Road 1.9 miles.

• Completed A-TRIP Resurfacing projects: Rocky Creek Road 11.84 miles, Judge Logue Road 5.42 miles, Fortner Street 5.83 miles

• Completed 49.98 miles of shoulder work.

• Completed clearing on Billy Snell Road

• Replaced 40 Cross Drains

• Cleaned out 40.79 miles of roadway ditches

• Cleaned out 6 off right-of-way ditches

• Site work completed at Columbia Senior Center, Downtown (Dothan) library, West Gate Library, County Court House Parking Lot

• Completed the Cumbie Road Ditch Stabilization Project (Watershed Management Project)

• Replaced bridge bearing pads on 4 bridges

• ACOM/Drew Rd Project (College of Osteopathic Medicine) included base, pave, drain & added additional turn lanes on Hwy 84

• Road and Bridge department completed the entire year without a recorded medical case.

• All work was completed with an above average rain fall of 82.45” (normal average rainfall is 56”).

The Government of Houston County Alabama continues to be in solid financial shape. This has been achieved through sound

planning by the Houston County Commission. While most government entities continue to struggle, Houston County, through well-

planned economic polices recently received an increased Bond rating from both Moody’s and S&P. The proactive consideration of

county revenue and expense is a part of the Commissions overall commitment to assuring that Houston County remains financially

secure while providing essential services to our community. The Houston County Commission continues to lay a solid foundation for

financial stability and adequate services for all our citizens.

Houston County District Map 462 North Oates Street - Dothan, AL 36303

(334) 677 – 4740

Mark Culver

Chairman

Curtis Harvey

District 1

Doug Sinquefield

District 2

Jackie Battles

District 3

Melinda McClendon

District 4

CURTIS HARVEY.. – DISTRICT 1

Represents: Towns of Columbia,

Gordon, Kinsey, Webb and the

northeastern section of Dothan.

Represents: Houston County at Large

DOUG SINQUEFIELD– DISTRICT 2

Represents: Towns of Ashford, Avon,

Cowarts and Cottonwood, the

southeastern section of the City of

Dothan, Dupree, Love Hill, Lucy and

Pansey. JACKIE BATTLES- DISTRICT 3

Represents: Southwest portion of

Houston County which includes the

Towns of Taylor, Rehobeth, Madrid and

the southwestern section of the City of

Dothan.

MELINDA MCCLENDON - DISTRICT 4

Represents: Northwestern portions of

both Houston County and Dothan. This

area includes the communities of Bay

Springs and Wicksburg.

Houston County Commission

County Officials

County Commission

Mark S. Culver…………….. Chairman Melinda McClendon………………. Comm, District 4

James C.(Curtis) Harvey, Jr. Commissioner, District 1 William J. Dempsey…..…Chief Administrative Officer

Doug Sinquefield………….. Commissioner, District 2 Gary C. Sherrer………..………………...........Attorney

Jackie Battles……………... Commissioner, District 3

Elected Officials

Robert Byrd…………………………………………………Coroner

Patrick Davenport…………………………………………...Judge of Probate

Starla Moss Matthews………………………………………Revenue Commissioner

Andy Hughes..………………………………………...…….Sheriff

Department Heads

Nancy Bristow……………... Accounting Mickey Sego..………………………..….Farm Center

Tony Weber…..……………. Community Corrections David Evans………….......... Water Lab/Rabies Control

Danny Cumbie…………….. Information Technology Sharon Knight……………… Sanitation Collections

Steve Carlisle……………... Emergency Management Agency Kelly Crowell………………............................ Safety

Barkley Kirkland………….. Engineer Sherry Douglas…………….............. In-Home Service

Sean Curtis……………....... Maintenance Keith Reed…………………………………….. Jail

Sheri Thompson…………… Personnel

HOUSTON COUNTY COMMISSION

FINANCIAL ORGANIZATIONAL CHART

COMMISSION ADMIN ASST

CAO EMA DIR ENG

IN HOME

MTCE IT ACCT WATER LAB

ASST ENGS GRAD REG

ENGS/ CIVIL ENG

SANITATION COLLECTIONS

RABIES CONTROL

SAFETY DIR (Part-time)

ELECTIONS LICENSE

ACCTING JAIL COMMANDER

CAPTAIN CMDR/ CHIEF DEPUTY

CLINIC DIR CHAPLAIN

PROBATE REV COMM

SHERIFF CORONER COMM CORR

PERSONNEL FARM CTR

BUDGET PURPOSES ONLY

Page 3

Combined Statement of Revenues, Expenditures and Changes in all Funds

All Governmental Fund Types, Expendable Trust and Agency Funds

For the Period

October 1, 2012 thru September 30, 2013

Houston County Commission, Dothan, Alabama

(UNAUDITED) COUNTY BUDGETED FUNDS ONLY

Governmental Funds

Special Debt Capital

Revenues General Revenue Service Projects Total

Taxes 11,957,857 10,239,711 22,197,568

Licenses and Permits 200,842 76,426 277,268

Intergovernmental 1,332,387 4,526,835 5,859,222

Charges for Services 5,678,396 365,396 6,043,658

Fine and Forfeits 10,176 10,176

Miscellaneous 551,443 2,039,231 2,590,674

Total Revenues 19,730,967 17,247,599 0 0 36,978,566

Expenditures

General Government 6,037,457 590,191 6,627,648

Public Safety 12,299,064 745,077 13,044,141

Highways and Roads 9,725,109 9,725,109

Sanitation 1,916,669 1,916,669

Health 728,631 728,631

Welfare 483,781 483,781

Culture and Recreation 630,951 630,951

Education 599,250 599,250

Debt Service 51,175 3,335,402 3,386,577

Total Expenditures 22,695,803 11,111,552 3,335,402 0 37,142,757

Excess of Revenues

Over (Under) Expenditures (2,964,836) 6,136,047 (3,335,402) 0 (164,191)

Other Financing Sources

Operating Transfers In 9,933,085 6,318,773 4,540,765 20,792,623 Proceeds – GFA D 18,846 657,666 676,512

Bond Proceeds 10,580,722 10,580,722 Pay Refunded Bond Escrow (10,417,052) (10,417,052)

Debt Issuance Cost (159,835) (159,835) Operating Transfers Out (7,705,716) (13,086,907) (20,792,623)

Total Other Financing 2,246,215 (6,110,468) 4,544,600 0 680,347

Revenues Less Expenditures

+/- Other Financing Sources (718,621) 25,579 1,209,198 0 516,156

Page 4

Combined Statement of Revenues, Expenditures and Changes in all Funds

All Governmental Fund Types, Expendable Trust and Agency Funds

For the Period

October 1, 2012 thru September 30, 2013

Houston County Commission, Dothan, Alabama

(UNAUDITED) COUNTY BUDGETED FUNDS ONLY

Governmental Funds

Special Debt Capital

General Revenue Service Projects Total

Fund Balance Summary

Funds

Beginning Fund Balances 6,566,158 864,716 0 0 7,430,874

Residual Equity Revenues

and Other Financing Sources

over (Under) Expenditures (718,621) 25,579 1,209,198 0 516,156

Ending Fund Balances 5,847,537 890,295 1,209,198 0 7,947,030

Assets

Beginning Fixed Assets 83,507,997

Net Change in Fixed Assets 1,243,850

Ending Fixed Assets 84,751,847

Total Funds and Assets

September 30, 2013 5,847,537 890,295 1,209,198 0 92,698,877

Page 5

Fund Balances as of

September 30, 2013 (COUNTY BUDGETED FUNDS ONLY)

Fund Description Balance

001……………….. General Fund………………………………………………........... 4,403,365 003……………….. Contingent Fund………………………………………………….. 1,385 006……………….. Special Assessment Fund………………………………………… 535,796 010……………….. Farm Center Fund………………………………………………… 0 015………………. Sanitation Fund…………………………………………………… 838,173 020….…………… EMA Fund………………………………………………………... 0 021………………. APCO Rep Fund………………………………………………….. 58,572 030….…………… Revenue Commission Operation Fund…………………………… 10,255 TOTAL GENERAL FUNDS 5,847,546 111…………….… Gasoline Fund (7 Cent)……………………………………………. 141,097 112…………….… Public Buildings, Roads and Bridges……………………………… 433,056 113…………….… Public Highway & Traffic Fund…………………………………… 15,011 115…………….… AL Mineral Severance Tax………………………………………… 2,976 117…………….… RRR Fund (4 Cent)………………………………………………… 105,440 118…………….… Secondary Roads Fund (2 Cent)…………………………………… 0 119…………….… Special Gas Tax Fund (5 Cent)……………………………….……. 39,836

TOTAL R&B FUNDS 737,416 116…………….… Capital Improvements Fund…………………………………….…. 0 120…………….… Tax Reappraisal Fund……………………………………………… 40,598 125………………. Walden Gas Tax……………………………………………….…… 55,070 136………………. Motor Vehicle Special Training……………………………………. 19,452 309………………. 04 G/O Ref Warr (Bond)…………………………………………... 1,209,199 310……………… 08 G/O Ref Warr (Bond)………………………………………….. 0 187/188……….… Work Release/Pre-Trial……………………………………………. 37,751 TOTAL ALL COUNTY FUNDS 7,947,032

Page 8

37.44%

Ad Valorem (Property Tax)

Revenue Comm, 13,599,277 , 36%

County Sales Tax, 5,592,053 , 15% Probate - Total, 4,048,998 , 11%

State Gasoline Tax, 2,440,264 , 7%

Other, 7,685,639 , 20%

FY 2012-2013 Actual Revenue Sources (County Budgeted Funds Only)

$37,658,913 (Includes Sale of Fixed Assets and Other Sources - $680,347)

Page 9

FIDUCIARY FUNDS

All Funds Less Trust Less Special Total County

& Agency Funds Funds

Taxes 22,197,568 22,197,568

Licenses and Permits 277,268 277,268

Intergovernmental 6,776,222 917,000 5,859,222

Charges for Services 6,974,580 923,723 7,199 6,043,658

Fines and Forfeits 10,176 10,176

Miscellaneous 3,106,183 143,245 372,264 2,590,674

------------- ------------ ------------- --------------

Sub-Total Revenues 39,341,997 1,983,968 379,463 36,978,566

Proceeds – Gen Fixed Assets 676,512 676,512

Proceeds – Other Sources 3,835 3,835

========= ======= ======== ========

Total Revenues 40,022,344 1,983,968 379,463 37,658,913

Total Revenues (COUNTY BUDGETED FUNDS ONLY)

Page 28

Page 29

Page 31

Total Expenditures (County Budgeted Funds Only)

FIDUCIARY FUNDS

All Funds Less Trust Less Special Total County

& Agency Funds Funds

General Government 8,068,008 1,427,271 13,089 6,627,648

Public Safety 13,403,277 359,136 13,044,141

Highways and Roads 9,725,109 9,725,109

Sanitation 1,916,669 1,916,669

Health 728,631 728,631

Welfare 633,781 150,000 483,781

Culture and Recreation 630,951 630,951

Education 599,250 599,250

Debt Service 3,386,577 3,386,577

------------- ------------ ------------ ---------------

FY 2013 Expenditures 39,092,253 1,577,271 372,225 37,142,757

======== ======= ====== ========

Page 37

FY FY FY

2011 2012 2013

Lease

Debt 66,043 0 1,128,946

Bond

2004 16,805,000 15,180,000 3,695,000

Bond

2008 7,335,000 6,755,000 6,155,000

Bond

2013A 0 0 10,500,000

Notes Pyble 51,002 0 0

HIDA

Totals 24,257,045 21,935,000 21,478,946

General Long Term Debt (Principal Only – As of 9/30/13)

HOUSTON COUNTY COMMISSION LONG TERM DEBT PAYMENT SCHEDULE (INCLUDING INTEREST)

FISCAL YEAR 04 /08/13A Bonds LEASES FISCAL YEAR

TOTAL DEBT PYMT

2013-2014 $3,259,908.76 465,680.88 $3,725,589.64

2014-2015 $3,254,165.01 456,965.52 $3,711,130.53

2015-2016 $3,186,146.26 222,991.43 $3,409,137.69

2016-2017 $3,171,871.26 $3,171,871.26

2017-2018 $3,173,146.26 $3,173,146.26

2018-2019 $2,650,821.26 $2,650,821.26

2019-2020 $1,523,695.01 $1,523,695.01

2020-2021 $348,318.76 $348,318.76

2021-2022 $348,318.76 $348,318.76

2022-2023 $347,918.76 $347,918.76

2023-2024 $351,578.76 $351,578.76

2024-2025 $349,608.76 $349,608.76

2025-2026 $352,218.76 $352,218.76

2026-2027 $348,656.26 $348,656.26

2027-2028 $349,656.26 $349,656.26

TOTAL BY DEBT $23,016,028.90 $1,145,637.83 $24,161,666.73

Page 38

Page 47

Debt Level Comparisons As of Net Assessed 5% Debt Total % of Legal

Oct 1, Property Value Limit Indebtedness Debt Limit

2005 1,095,282,720 54,764,136 27,711,832 50.60%

2006 1,196,817,160 59,840,858 26,588,446 44.43%

2007 1,259,170,220 62,958,511 27,555,914 43.77%

2008 1,319,232,060 65,961,603 33,532,284 50.84%

2009 1,340,537,060 67,026,853 30,568,745 45.61%

2010 1,372,039,540 68,601,977 27,344,697 39.86%

2011 1,352,381,798 67,619,090 24,257,045 35.87%

2012 1,413,577,120 70,678,856 21,935,000 31.03%

2013 1,440,597,400 72,029,870 21,478,946 29.82%

Page 48

Houston County Commission Fixed Assets

FY 2012/2013

800-17100 Land 3,814,452.06 100,000.00 0 3,914,452.06

800-17200 Buildings & Other Land Improvements 38,776,883.53 0 0 38,776,883.53

800-17410 Construction Equipment 5,025,032.87 248,031.00 202,565.00 5,070,498.87

800-17420 Office Equipment & Furniture 291,629.23 96,592.06 0 388,221.29

800-17430 Motor Vehicles 7,611,832.45 300,153.07 481,485.30 7,430,500.22

800-17431 Mtr Veh-Maj Overhauls & Improv 1,684,566.00 0 373,732.00 1,310,834.00

800-17440 Data Processing Equipment 390,012.55 0 0 390,012.55

800-17460 Communications Equipment 415,837.32 0 0 415,837.32

800-17490 Other Equipment & Furniture 2,531,782.97 88,188.90 75,100.00 2,544,871.87

800-17634 Capital Lease - Motor Vehicles 0 1,323,399.00 0 1,323,399.00

800-17800 Roads 7,126,166.39 0 0 7,126,166.39

800-17801 Roads / Const in Progress 707,860.10 220,368.46 0 928,228.56

800-17805 Bridges 15,131,941.67 0 0 15,131,941.67

83,507,997.14 2,376,732.49 1,132,882.30 84,751,847.33

NOTE:

As Capital Leases are paid out, the items are moved to Non-Capital Lease accounts once ownership is moved from Lease Holder to County.

Items costing less than $5,000 are expensed.

Account Balance Balance

Number Fixed Assets 10/1/12 Additions Reductions 9/30/13