Financial Trends Report

Collin County, Texas – County Government

Office of County Auditor

Financial indicators in this report have been identified by ICMA (International

City/County Management Association) as the factors most relevant in determining the
financial condition of local governments. These factors are also used by financial rating
agencies to evaluate our ability to meet and sustain debt service.

Indicators are divided into sections by type. Each provides a description of the indicator,
a graphical representation of the historical trend, and an explanation of the implications
of the trend for Collin County government.

Definitions for terms used in this report are the same as those used in the
Comprehensive Annual Financial Report and the Annual Budget. Total operating
revenues and operating expenditures are derived from the general, general road and
bridge, special revenue, debt service, and capital project funds only.

Contact Information

Donald W. Cozad
County Auditor
972-548-4641

Mission Statement

The County Auditor independently serves the citizens of Collin County by

promoting accountability, fiscal integrity and openness in county
government. Working with Commissioners Court, department heads, the
employees and agencies of Collin County, we strive to ensure the
appropriate use of public resources, according to the laws that govern
county finances
 OFFICE OF COUNTY AUDITOR
200 S. McDonald Street  Suite 300
COLLIN COUNTY McKinney, TX 75069
(972) 548-4731  Metro (972) 424-1460
Fax (972) 548-4696

June 1, 2008

The Taxpayers of Collin County

Collin County, Texas

We have prepared this report evaluating the County’s financial condition using financial trend analysis, a
method pioneered by ICMA (International City/County Management Association). Using a new format
developed to provide financial and operating trends, the report looks at the financial results of county
operations over a multi-year period, rather than just one-year financial data or in a five-year budget plan.

This report is intended to provide information to permit a better understanding of our financial condition
and the forces affecting the county’s finances. Its intent is to help identify existing and emerging
financial situations to permit development of an action plan to address issues. Graphical analysis is used
to help the reader understand at a glance what is happening with the financial condition of the county, as
well as understanding the long-term effect of operating and capital decisions and the impact of changes in
demographics and the local economy.

The trend report is a systematic approach to identify factors affecting financial condition so they can be
measured and analyzed. Warning trends and favorable or unfavorable direction of the trend is indicated.

This effort is part of an on-going process by this office to provide better analysis of financial conditions
and to better serve the public and management’s needs for information. It will be prepared annually after
the annual financial report is completed. All the data presented herein is in our published annual audited
financial statements, with the exception of the Consumer Price Index adjusting factors. The CPI numbers
come from the federal Bureau of Economic Indicators.

We believe this comprehensive approach to analysis will aid in understanding of the financial status of the
county. We hope you find this report useful. Please contact the County Auditor’s Office if you wish to
provide suggestions on how we may improve the report or to answer any questions you may have.

Sincerely,

Donald W. Cozad
County Auditor
 Financial Indicators for Trend Report

Revenue:
1 Operating Revenue per Capita Current Report
2 Tax Revenue per Capita Current Report
3 Restricted Operating Revenues Future Report
4 Intergovernmental Revenues pre Capita Future Report
5 Capital Project Revenues Future Report
6 Fees & Permits Revenues Future Report
7 Charges for Services Revenues Future Report
8 General Fund Revenue per Capita Current Report
9 Road and Bridge Fund Revenue per Capita Current Report
10 Uncollected Property Taxes Current Report
11 General Fund Revenue Variance Future Report
Expenditures:
12 Operating Expenditures per Capita Current Report
13 General Fund Expenditures per Capita Future Report
14 Road and Bridge Expenditures per Capita Future Report
15 Capital Project Expenditures per Capita Future Report
16 Employees per 1,000 Capita Current Report
17 Average Employee Salary and Benefits - General Fund only Current Report
Operating Position:
18 Operating Surplus – General Fund Current Report
19 Liquidity Ratio - General Fund and Road & Bridge Fund Future Report
20 Current Ratio - General Fund and Road & Bridge Fund Future Report
21 Current Liabilities to Operating Revenues Future Report
22 Employee Benefits as a % of Personnel Expenditures Future Report
23 Unrestricted Fund Balance - General Fund Current Report
24 Fund Balance - Road and Bridge Fund Current Report
25 Retained Earnings - Internal Service Funds (Insurance Reserves) Future Report
Debt Structure and Leave Liabilities:
26 Long-Term Debt as % of Taxable Assessed Valuation Current Report
27 Long-Term Debt per Capita Current Report
28 Debt Service Costs Future Report
29 Debt Service Costs as % of Property Tax Revenues Current Report
30 Overlapping Debt per Capita Future Report
31 Overlapping Debt as % of Taxable Assessed Valuation Future Report
32 Unused Employee Paid Leave Liability Future Report
Condition of Capital Assets:
33 Repair and Maintenance Costs Future Report
34 Funding for Capital Outlay Current Report
Economic Base:
35 Population Current Report
36 Assessed Property Values Current Report
*** These are future indicators to be analyzed and added.
 INTRODUCTION

This is the first annual Financial Trend Report; it has been produced by the Office of County
Auditor of Collin County. Information in this report has been developed in order to provide a
long-range picture of financial condition of Collin County.

There are several advantages to providing a long-range assessment of financial condition:

- Improve the quality of information for making policy and budgetary decisions;
- Identify emerging trends in order to take corrective action.
- Provide a graphical analysis for review and tracking of trends.
- Utilize the trends of specific financial indicators over time to make meaningful comparisons.

This analysis of the financial condition of Collin County is designed to provide the graphical
reporting to track trends. Thirty-six indicators have been identified; fourteen are developed and
the corresponding data compiled for the most recent five (5) consecutive years available (FY
2003 through FY 2007). These fiscal years have all been prepared in compliance with the
reporting requirements of GASB34; the financial indicators were derived from the ICAM
(International City/County Management Association) handbook titled “Evaluating Financial
Condition: A Handbook for Local Government.”

This system of evaluating the financial condition of local government employs the Financial
Trend Monitoring System (FTMS). The FTMS identifies and organizes the many factors that
together depict financial condition; these factors can be measured and analyzed on an on-going
annual basis.

All of the financial and statistical data used in this analysis has been collected from the
Comprehensive Annual Financial Reports, which includes the audited financial statements of the
County, as well as economic and statistical data included in the unaudited section of the CAFR,
which were provided by local, regional and state agencies, and information obtained from the
Federal Bureau of Economic Indicators regarding the Consumer Price Index. Where possible, the
formulas used, as well as the definitions for each indicator, are taken directly from the ICMA
handbook. In some cases, indicators may have been adjusted to meet special conditions present
in the County. ICMA intends that information generated by this monitoring system be made
available to the County’s policy makers, as well as citizens, task force/committee members,
employees, bond rating agencies and anyone else interested in the financial condition of the
County. It is our intent that these financial indicators will be updated in future years so every
citizen in the County will be aware of long-term trends concerning the financial condition of
Collin County government. We also intend to expand the report to include those trends listed
above that are noted as to be included in a future report.
Overview of Trend
Monitoring Analysis
Because of the size and complexity of the financial structure of Collin County, the County
Auditor, with responsibility for recording, classifying and reporting the financial results of the
county, has established a financial trend monitoring system to provide supplementary data to
help with planning and responding to specific financial conditions.

The process is to promote better understanding of the county’s financial condition and the forces
affecting it. The intent is to more easily identify existing and emerging financial issues, assist in
developing actions to address the issues, and to supplement the periodic financial statements
issued by this office.

What is Financial Condition?

Financial condition refers to a government’s ability to (1) maintain existing service levels, (2)
withstand local and regional economic disruptions, and (3) meet the demands of natural growth,
decline and change. Financial condition can be defined in four specific sequences:

30-days: Cash Solvency (our ability to generate enough cash over thirty days to pay our bills.)

1 year: Budgetary Solvency (our ability to generate enough revenues over our budget cycle to
meet planned expenditures and not create an unplanned deficit.)

More than 1 year: Long-Run Solvency (our ability to pay current budgeted expenditures and
provide funds for capital needs and employee benefits that extend beyond the current cycle.)

Long-term expectations: Service-Level Solvency (our ability to provide services at a level and
quality needed to meet health, safety and welfare expectations of our citizens and communities.)

The objective of trend analysis is to graphically report our ability to finance services on a
continuing basis. We recognize accounting systems stress legal compliance and tracking the
path of each dollar, and fund accounting may not provide adequate management reports.

Budgets are the guiding document to track planned flow of dollars, but they do not evaluate
long-term financial condition. Even a five-year plan, with its forward-looking emphasis, does
not evaluate financial condition. Financial statements, budgets, and plans are limited; they do
not show:

 Costs being postponed to the future

 Changes in employee compensated absences or the future effect of those changes
 Reduced purchasing power caused by inflation
 Decreased flexibility resulting from increasing state and federal mandates
 Changes in roads, buildings and other fixed assets
 Economic and demographic change in relation to changes in revenue and expenditures
 A multi-year perspective detailing emergence of favorable and unfavorable conditions
 Effects of the local, regional, state and national economic conditions
 Changes in the population level and composition of the county
We have adapted a program for evaluating financial condition called the Financial Trend
Monitoring System, created using Evaluating Financial Condition - A Handbook for Local
Government (ICMA, 2003) and other accounting and financial sources as guides.

What is the Financial Trend Monitoring System?

The Financial Trend Monitoring System (FTMS) identifies factors affecting financial condition,
then arranges them for analysis and measurement. It pulls together financial reports, combines
them with economic and demographic data, and creates a series of financial indicators that, when
plotted over time, can be used to predict future trends and provide alerts regarding potential
future problems.

Advantages in a trend monitoring system include:

 A way to quantify a significant amount of data

 Amounts are from data that we already generate or are reasonably available
 Does not require extra computers, new software, or complicated math formulas
 Places events of a single year into a longer perspective
 Provides a way to follow changes over time

Using these indicators is intended to permit county administrative and financial management to:

 Gain a better understanding of our financial condition

 Identify emerging problems before they reach serious proportions
 Identify existing problems which might not otherwise be evident
 Present a straightforward picture of our financial strengths and weaknesses
 Introduce long-range considerations into the financial management process
 Provide a starting point for establishing expanded financial policies

Don’t misunderstand – it may not explain why a problem occurred, nor is it just one number that
can measure the financial health of the county. What it should do is provide flags for identifying
problems, clues about their causes, and time to take anticipatory action.

How does FTMS work?

Financial Trend Monitoring is based on three general factors – environmental, organizational,

and financial. These are part of this comprehensive annual report. Environmental factors
determine organizational factors, which in turn determine financial factors. Environmental
factors are filtered through a set of organizational factors; the result describes the internal
financial state of the county.

Environmental factors are external influences that affect us in two ways: (1) they create demands
(add deputies, add roads, accept a grant, etc.); (2) they provide resources (‘adding deputies’ was
created by growth, which in turn increased tax revenues.) This effect begs the question: do
environmental factors provide enough resources to pay for the demands they make?
Organizational factors are our responses to changes in environmental factors. In theory, we can
remain in good financial condition if we make the appropriate organizational response to
changing environmental conditions by, for example, reducing services, increasing efficiency, or
adjusting the tax rate. All may be optimistic, especially in light of political constraints. We must
ask: do management practices allow responses appropriate to changes in the environment?

Financial factors reflect our financial condition resulting from environmental and organizational
influence. If environmental demands exceed the resources provided and if we do not balance
demand with resources, financial condition will eventually show signs of cash, budgetary, or
long-term insolvency. In other words, it is in the financial factors that untreated problems
ultimately make themselves felt. The intent of the FTMS is to answer the question: are we
currently paying the full cost of operating, or are we postponing costs to a future period when
revenues may not be available to pay these costs?

By using 5 years of audited data (our goal is ultimately 10 years), we anticipate trend analysis
will provide several answers:

1) How fast is an indicator changing and in which direction?

2) How does one trend compare to another and is there a correlation?
3) Can we compare our trends to state or national trends?
4) Can we use the results effectively for planning, budgeting and policy making?

Completing the Trend Analysis

The steps to follow are:

1) Identify unfavorable trends

2) Determine when the unfavorable trend began
3) Consider mitigating circumstances
4) Identify the causes underlying the unfavorable trend
5) Compare the indicator trends to one another
6) Compare the economic condition of the county to state or national trends
7) Determine whether further analysis or comments are required
8) Compare the trends to the benchmarks used by the credit-rating and bond agencies
9) Take other factors into consideration
10) Add professional judgment
11) Develop policy statements to set financial goals

For each trend, we can evaluate the warning signs, describe the event, offer commentary, and
provide suggestions for analysis. The key to creating the analysis is in many ways tied to one
specific formula. Important issues to be considered include growth, flexibility, dependability,
diversity and administration.
Explanation of chart and comments:

The sample chart shown next is for the graphical representation of number of employees per
1,000 citizens over the five year period from 2003 – 2007. The box in the upper right hand
corner indicates our evaluation of the trend and how well or how poorly the County is doing as
related to that trend. As you can see from the arrow in that box, Collin County is doing very well,
with each year showing a decline in the number of employees. This is occurring because of
investments in technology and training, as well as the experience and knowledge of the staff in
meeting the needs of citizens and residents. Below that box is one that states

Warning Trend
Increasing number of
employees per 1,000 citizens

The “Warning Trend” box is intended to give graphical clues as to what to look for when
analyzing the graph. If the number of employees had increased from 3 per 1,000 citizens to 5 per
1,000 citizens, the trend would be very negative; in other words, an increasing number of
employees per 1,000 citizens.

Below the graph is the spreadsheet for the five years showing the calculation or details graphed
above the spreadsheet.
 Employees per Thousand Citizens Collin County Trend
2.40
Very Positive
Positive
2.30
Marginal
Negative
2.20
Very Negative
2.10

Warning Trend
2.00 Increasing number of
2003 2004 2005 2006 2007 employees per 1,000 citizens

2003 2004 2005 2006 2007

Number of employees 1,386 1,434 1,461 1,518 1,579

Population 597,322 628,426 659,457 690,500 724,900

Number of Employees per

Thousand Citizens 2.32 2.28 2.22 2.20 2.18
 Revenue
Indicators
Revenue Indicators

Revenues determine the capacity of the county to provide services. Important issues to consider relative to revenues include growth,
flexibility, economic conditions, and public demand. Revenues should grow at a rate equal to or greater than the combined effects of
inflation and expenditure pressures, caused by demand for service, statutory increases in service, or unfunded mandates. Revenues
should be sufficiently flexible to allow, over time, adjustments to match the changing conditions. Our primary source of revenue is
the property tax; anything that affects it, either rate or value changes, has the potential to dramatically change the ability to provide
services. At the same time, dependency on non-property tax revenues may foster an overdependence on external funding sources such
as investment earnings or federal or state grants, as well as requiring changes in charges for services. User fees should be regularly
evaluated to ensure they cover the true cost of providing services.

There are many different problems that can affect our revenue stream; to identify them requires analyzing our revenue structure on an
on-going basis. Some of the different problems include:

- Changes in the tax rate or tax burden

- Inefficiency in collection or administration of revenue
- Overdependence on external revenue sources
- Failure to take advantage of all available state fees and fines
- Deterioration in the property tax base
- Legislative priorities that may adversely affect revenues
- User fees that do not cover the cost of providing services
Collin County’s Status – Revenue Indicators

The overall trend for Collin County indicates that our revenues are not keeping up with the increase in inflation and the changing tax
base. While our population growth has continued, the demand for services has risen also.

Operating Revenue per Capita

A review of our per capita revenue reveals changes relative to changes in population. After accounting for inflation over the last five
years, revenue growth increased only 4.08% vs. an unadjusted rate of 17.59%. Some of the lower growth may be attributed to a
reduction in the property tax rate for FY 2006 from $0.25 per $100 valuation to $0.245 per $100 valuation.

Property Tax Revenue per Capita

Property tax revenues per capita in constant dollars (after inflation) showed a decrease of 4.96%, from $198.04 in 2003 to $188.20 in
2007. The reduction in the tax rate was the primary cause of this decline in property tax revenues. While the intended effect is to
utilize a portion of the fund balance that has increased over the years, it is important to be vigilant in not taking for granted that the
population and tax base will continue to grow at the same pace as prior years or that investment earnings generated by the fund
balance will be sufficient to compensate for any shortfall.

General Fund Revenue per Capita

The General Fund is the primary operating fund of the County. It is the largest fund and includes revenues from property taxes, fees
and permits, federal and state funds, charges for services, fines and forfeitures, investment earnings, and miscellaneous revenues. In
current dollars it appears that the General Fund has increased revenues by 12% over the last five years. In reality, when adjusted for
inflation, the General Fund has actually decreased in revenues by just under 1%. While not a large decrease, warning bells should be
sounding to watch this closely. It is even more important given the loss of interest income on the General Fund investments as the
prime rate has been reduced dramatically in the last 12 months in response to the recent credit crisis in financial markets.

Road & Bridge Fund Revenue per Capita

While much smaller in total dollar value, the Road & Bridge Fund reflects the effect of using fund balance to reduce the revenue
requirements for funding. In current dollars, Road & Bridge shows an increase in revenue of 5.22%; in constant dollars, adjusted for
inflation, Road & Bridge shows an alarming decrease of 6.89%, with its lowest revenue generating year of 2005, when fund balance
was used to offset property tax revenues not allocated to the fund.
 Operating Revenues per Capita Collin County Trend
$340
Very Positive
$300 Positive
Marginal
$260
Negative
$220
Very Negative

$180
Warning Trend
$140 Declining per capita
revenue growth rate
$100
2003 2004 2005 2006 2007
Constant Dollars Current Dollars

2003 2004 2005 2006 2007

Gross Operating Revenues * $ 160,023 $ 167,220 $ 187,285 $ 205,075 $ 228,362

Consumer Price Index 1.00 1.03 1.06 1.10 1.13
In Constant Dollars $ 160,023 $ 162,350 $ 176,684 $ 186,432 $ 202,090
Population 597,322 628,426 659,457 690,500 724,900

Operating Revenues per

Capita in Constant Dollars 267.90 258.34 267.92 270.00 278.78

Operating Revenues per

Capita in Current Dollars 267.90 266.09 284.00 296.99 315.03

* stated in millions
 Property Tax Revenues per Capita
Collin County Trend
$220
Very Positive
$210 Positive
Marginal
$200
Negative
$190 Very Negative
$180

$170 Warning Trend

2003 2004 2005 2006 2007 Declining per capita tax
Constant Dollars Current Dollars revenue growth rate

2003 2004 2005 2006 2007

Property Tax Revenues * $ 118,291 $ 125,285 $ 132,226 $ 142,929 $ 154,165

Consumer Price Index 1.00 1.03 1.06 1.10 1.13
In Constant Dollars $ 118,291 $ 121,636 $ 124,742 $ 129,935 $ 136,429
Population 597,322 628,426 659,457 690,500 724,900

Property Tax Revenues per

Capita in Constant Dollars 198.04 193.56 189.16 188.18 188.20

Property Tax Revenues per

Capita in Current Dollars 198.04 199.36 200.51 206.99 212.67

* stated in millions
 General Fund Revenue per Capita
Collin County Trend
$205
Very Positive
$195 Positive
Marginal
$185 Negative
Very Negative
$175

$165 Warning Trend

2003 2004 2005 2006 2007 Declining per capita
Constant Dollars Current Dollars general fund revenue

2003 2004 2005 2006 2007

General Fund Revenues * $ 104,106 $ 113,856 $ 121,176 $ 133,811 $ 141,507

Consumer Price Index 1.00 1.03 1.06 1.10 1.13
In Constant Dollars $ 104,106 $ 110,540 $ 114,317 $ 121,646 $ 125,227
Population 597,322 628,426 659,457 690,500 724,900

General Fund Revenues per

Capita in Constant Dollars 174.29 175.90 173.35 176.17 172.75

General Fund Revenues per

Capita in Current Dollars 174.29 181.18 183.75 193.79 195.21

* stated in millions
 Road & Bridge Fund Revenues per Capita Collin County Trend
$28
Very Positive
Positive
$24 Marginal
Negative
$20 Very Negative

$16 Warning Trend

2003 2004 2005 2006 2007
Declining per capita road
Constant Dollars Current Dollars & bridge fund revenue

2003 2004 2005 2006 2007

Road & Bridge Fund Revenues * $ 14,287 $ 12,814 $ 12,626 $ 16,168 $ 18,243
Consumer Price Index 1.00 1.03 1.06 1.10 1.13
In Constant Dollars $ 14,287 $ 12,441 $ 11,911 $ 14,698 $ 16,144
Population 597,322 628,426 659,457 690,500 724,900

Road & Bridge Fund Revenues

per Capita in Constant Dollars 23.92 19.80 18.06 21.29 22.27

Road & Bridge Fund Revenues

per Capita in Current Dollars 23.92 20.39 19.15 23.41 25.17

* stated in millions
Expenditure
Indicators
Expenditure Indicators

Expenditures can be equated, at least to a degree, as a measure of service output. According to government sources, the more we
spend in constant dollars, the more services we are providing. Unfortunately, it does not measure how effective we are in providing
the service nor does it measure how efficiently we deliver the services.

Obviously the first issue is “are we living within our revenues?” While most would like to see a balanced budget, with spending
equaling income, it is a difficult goal to attain. In reality, the only way we can spend more than we take in is to use reserves or borrow
money to pay for the services not paid for by revenue. There are other, less noticeable ways to reduce expenditures, but the long-term
effect of them can be traumatic. For example, maintenance can be deferred on streets, buildings, vehicles or equipment. The
replacement cycle for capital equipment can be extended; changing replacement time from three years to five years is an example.
Deferred funding of pension or post-employment benefits are other ways.

An area that perhaps should be explored more fully is the ability to adjust service levels to match changing conditions. Ideally, the
growth rate for revenues matches the growth rate for expenditures. If the expenditure growth rate is lower than the revenue growth
rate, adjusted for inflation, then there may be some flexibility in adjusting service rates. If we have increasing mandatory or fixed
expenses, our ability to adjust becomes less. As the percentage of debt service, grant matching, post-employment or pension benefits,
state and federal unfunded mandates, contractual agreements, and commitments to construction of buildings and roads increases, the
flexibility of spending changes and adjustments decreases.
Collin County’s Status – Expenditures

Operating Expenditures per Capita

Operating expenditures per capita has remained relatively stable over the last 5 years, growing only 1.75% on a constant dollar basis,
after adjusting for inflation, versus a growth of 14.95% in current dollars before adjusting for inflation. However, the concern will be
what is going to happen in 2008 and beyond as fuel prices, which affect not only vehicle costs but also road material and utility costs,
continue to escalate.

Employees per Thousand Citizens

Needless to say, the largest expense the County incurs is for employees. Employees are required in every facet of county government,
from public safety to public transportation to justice to administration to tax collection. The demand for public services increases each
year, both due to a larger population and due to mandates from the federal and state governments. An increasing proportion of
employees to citizens would indicate declining productivity or an inflated payroll. As you can see from the graph, the number of
employees required to provide services to the citizens has actually declined, an indicator of reliance on technology and efficiency to
provide the same or higher level of service when compared to five years ago.

Average Employee Salary and Benefits - General Fund only

In constant dollars the average employee salary and benefits grew by only 8.4% over the last five years, with a decrease in 2006 and
an increase in 2007. Benefits comprise approximately 35% of the total, with the salary about 65%. Using that approximation, salaries
grew, on a constant dollar basis adjusted for inflation, from $35,911 in 2003 to $38,999 in 2007. That is a total increase of only 8.4%
over the five year period, when adjusted for inflation.
 Operating Expenditures per Capita Collin County Trend
$400 Very Positive
Positive
$350
Marginal
Negative
$300
Very Negative
$250 Warning Trend
2003 2004 2005 2006 2007
Increasing per capita
Constant Dollars Current Dollars operating expenditures in
constant dollars
2003 2004 2005 2006 2007

Operating Expenditures $ 170,468 $ 185,721 $ 209,938 $ 255,952 $ 237,815

Consumer Price Index 1.00 1.03 1.06 1.10 1.13
In Constant Dollars $ 170,468 $ 180,312 $ 198,055 $ 232,684 $ 210,456
Population 597,322 628,426 659,457 690,500 724,900

Operating Expenditures per

Capita in Constant Dollars 285.39 286.93 300.33 336.98 290.32

Operating Expenditures per

Capita in Current Dollars 285.39 295.53 318.35 370.68 328.07

* stated in millions
 Employees per Thousand Citizens Collin County Trend
2.40
Very Positive
Positive
2.30
Marginal
Negative
2.20
Very Negative
2.10
Warning Trend
Increasing number of
2.00
2003 2004 2005 2006 2007 employees per 1,000
citizens
2003 2004 2005 2006 2007

Number of employees 1,386 1,434 1,461 1,518 1,579

Population 597,322 628,426 659,457 690,500 724,900

Number of Employees per

Thousand Citizens 2.32 2.28 2.22 2.20 2.18
 Average Salary & Benefits Collin County Trend
General Fund Only - In Constant Dollars

$65,000
Very Positive
Positive
$60,000 Marginal
Negative
$55,000
Very Negative
$50,000

Warning Trend
$45,000
2003 2004 2005 2006 2007
Consistent constant dollar
increases / decreases
Current Dollars Constant Dollars

2003 2004 2005 2006 2007

Number of employees-Genl Fund 1,265 1,304 1,325 1,379 1,432

Actual Salary & Benefits-Genl Fund $ 61,329,000 $ 67,755,000 $ 71,749,000 $ 75,896,000 $ 85,194,000

Average Employee Salary & Benefits

Paid in Current Dollars 48,481.42 51,959.36 54,150.19 55,036.98 59,493.02

Consumer Price Index 1.00 1.03 1.06 1.10 1.13

Operating Expenditures per Capita in

Constant Dollars 48,481.42 50,445.98 51,085.08 50,033.62 52,648.69
Operating Position
Indicators
Operating Position Indicators

Operating position has an important place in county government. As discussed earlier, operating position refers to the ability to:
(1) balance the budget in the current year,
(2) maintain reserves for emergencies, and
(3) maintain sufficient liquidity to pay bills on a timely basis.

Balancing the Current Budget

Each year, there are several variables that come in to play as to the level of both revenues received and money spent. For example,
there may be intergovernmental revenues that become available, such as after September 11, 2001. Each year, the County will have
an operating surplus or an operating deficit. A surplus occurs when revenues exceed expenditures, while a deficit occurs when
expenditures exceed revenues. In some cases, there will be a conscious and intentional decision to budget contingency expenditures in
order to create a surplus that could then be applied to future anticipated operating increases.

Reserves
Each year the County includes as part of its budget a contingency line item for emergencies that may occur during the year. When the
emergency does not happen, there is a built-in increase in fund balance, as not all of the money budgeted was spent, thus creating a
budget surplus. Reserves in fund balance are built through an accumulation of those operating surpluses. There are different
categories the county uses to differentiate between surpluses. We use fund balance that has been reserved for any number of
specifically planned and expected expenditures in the future, including debt service, capital projects, encumbrance (purchases made
this year for goods to be received and paid for in future years), and inventories. We also have an unreserved fund balance that is not
legally required but is simply good planning for future years, including designating surpluses for future uses such as purchase of
capital assets, special projects, long-term planning, etc. Then there is the unreserved and undesignated fund balance, which is
maintained and used in the event of:
- Loss of a revenue source
- Economic downturn, leading to lower collections of property taxes
- Unanticipated expenditure demands due to natural disasters, such as the floods last year or the tornado in 2006
- Need to incur a large capital expenditure or other non-recurring expenses, such as constructing a building without debt
- Smoothing out cash flow due to unusual events

Reserves can be both budgeted as contingency as noted above or they can be reflected as a “designated for” portion of fund balance.
Liquidity
Liquidity is the life blood of any on-going concern, whether a business, a government or an individual. It is the flow of cash, both in
and out. For example, we receive most of our property tax revenues in the months of December, January and February. Since
property taxes are the primary source of funds and must stretch over the entire twelve months of the budget cycle, we have to preserve
money during the “busy” season to use the rest of the year. Our lowest cash flow period is the three months of September –
November. We use our cushion of money received earlier in the year to hold us over until the next large inflows begin.

An analysis of operating position helps us identify the following conditions:

- Decline in reserves
- Decline in liquidity
- Pattern of operating deficits, planned or unplanned
- Ineffective revenue forecasting techniques
- Ineffective budgetary controls
- Ineffective expenditure forecasting techniques
Collin County’s Status – Operating Position

Operating Surplus – General Fund

The County has had moderate success in achieving an operating surplus in the five years 2003 – 2007. The drop from 2003 to 2005
reflects the lower revenues after the 2001 economic downturn. Economic downturns affect cities early on as sales tax revenues drop
due to lower retail sales. With counties, property taxes are the primary source of revenues and generally lag the much quicker
response time to lower retail sales. Given this effect, we can expect lower property tax revenues to affect the county again in two to
three years. We have already seen a slightly lower surplus generated in FY 2007; the warning trend would be to see this continue after
this year, unless the lower surplus is planned for a specific year.

Unreserved, Undesignated Fund Balance – General Fund

The County continues to maintain a healthy General Fund reserve, even after designating some of those funds for future plans that are
unspecified at this time. Generally, the County is attempting to reduce that balance to a lower number of days of operating surplus
over the next several years.
 Operating Surplus - General Fund
As % of General Fund Operating Revenues Collin County Trend
14.00% Very Positive
Positive
11.50%
Marginal
9.00%
Negative
Very Negative
6.50%

Warning Trend
4.00%
2003 2004 2005 2006 2007
Consistent operating
deficits as % of revenue

2003 2004 2005 2006 2007

General Fund
Operating Surplus (Deficit) $ 8,287 $ 8,034 $ 6,885 $ 16,808 $ 14,625

Operating Revenues $ 104,215 $ 115,034 $ 121,383 $ 133,872 $ 141,792

Surplus (Deficit) as a % of
Operating Revenue 7.95% 6.98% 5.67% 12.56% 10.31%

* stated in millions
 General Fund - Unreserved Fund Balance
As % of General Fund Operating Revenues Collin County Trend
75.00% Very Positive
70.00%
Positive
Marginal
65.00% Negative
60.00%
Very Negative
55.00%
Warning Trend
50.00%
Decreasing unrestricted fund
2003 2004 2005 2006 2007 balance as % of operating revenues

2003 2004 2005 2006 2007

General Fund
Unreserved, undesignated
fund balance $ 61,411 $ 71,615 $ 74,515 $ 93,650 $ 101,067

Operating Revenues $ 104,215 $ 115,034 $ 121,383 $ 133,872 $ 141,792

Surplus (Deficit) as a % of
Operating Revenue 58.93% 62.26% 61.39% 69.95% 71.28%

* stated in millions
 Debt
Indicators
Debt Indicators

Debt is an effective means to finance road and bridge construction, new buildings, updates to computer hardware and software and
other short and long-term needs. Improperly used, debt can wreck havoc on a county’s finances. An inability to repay according to
the terms and conditions of the debt can have serious consequences on our credit rating, interest rates, and future costs.

There are two types of debt that we use for financing future needs:
1) General Obligation Bonds, both as Unlimited Tax Bonds and Limited Tax Bonds
2) Tax Notes

Unlimited Tax General Obligation Bonds are used primarily for road and bridge construction, as permitted by statute. Limited Tax
General Obligation Bonds are used primarily for new facilities and permanent improvements. Tax Notes are used for both short-term
and long-term obligations used for equipment and computer financing.

Although there are statutory limits for each type, the more useful method to evaluate debt required is the ability to repay according to
the terms and conditions of the debt. We also have to consider overlapping debt of other jurisdictions within the county and any debt
against which the County may have pledged its “full faith and credit”.

In reality, debt should be matched against and proportionate in size and growth of the tax base. Other considerations are that the
repayment terms not extend beyond the useful life of the facilities which it finances, not be used to finance or balance the operating
budget, not require a repayment schedule that places an undue strain on the County’s operating budget, and not be so high as to
jeopardize the County’s credit rating.

When the debt structure is examined in detail, the examination should reveal the following conditions:
- Increased reliance on long-term debt
- Decreases in expenditure flexibility due to increased fixed costs of debt service
- Inadequate cash management procedures
- Inadequate expenditure controls
- Inappropriate use of short-term debt to finance current operations
Collin County’s Status – Debt

Net Direct Debt as a % of Assessed Valuation

The County’s net direct debt has increased each year until 2007, when it experienced a slight decline. However, another debt series
will be issued this summer which may lead to it continuing its rise. The warning trend is increasing direct debt as a percentage of
assessed valuation. As the County is continuing its growth at a rapid pace, the use of debt for road construction, facility construction,
and upgrades in technology is appropriate. However, as the growth slows, the debt service may become a greater burden, thus leading
to less funds available for maintenance and operating expenses.

Direct Debt per Capita in Constant Dollars

The County’s net direct debt per capita in constant dollars shows an ever-increasing burden of debt in constant dollars, which removes
the effect of inflation. The County maintains an excellent credit rating and the increasing debt load has not affected future borrowings
and probably won’t for some time to come. However, if the growth does not continue according to expectations, the debt burden may
become a much larger issue.
 Net Direct Debt
As a % of Assessed Valuation
Collin County Trend
0.80% Very Positive
Positive
0.60% Marginal
Negative
0.40%
Very Negative
0.20%

Warning Trend
0.00%
2003 2004 2005 2006 2007
Increasing amount of net
direct debt as % of assessed
valuation

2003 2004 2005 2006 2007

Assessed Valuation (000s) $ 46,727,187 $ 49,168,855 $ 52,275,034 $ 56,237,472 $ 68,657,179

Net Direct Debt (000s) $ 200,651 $ 248,732 $ 283,263 $ 337,395 $ 368,206

Net Debt as a % of Assessed

Valuation 0.43% 0.51% 0.54% 0.60% 0.54%
 Direct Debt per Capita Collin County Trend
In Constant Dollars
Very Positive
$500
Positive
$450 Marginal
Negative
$400 Very Negative
$350

Warning Trend
$300
Consistently rising dollars
2003 2004 2005 2006 2007
per capita of direct debt
Constant Dollars

2003 2004 2005 2006 2007

Net Direct Debt * $ 200,651 $ 248,732 $ 283,263 $ 337,395 $ 368,206

Consumer Price Index 1.00 1.03 1.06 1.10 1.13
In Constant Dollars $ 200,651 $ 241,487 $ 267,229 $ 306,723 $ 325,846
Population 597,322 628,426 659,457 690,500 724,900

Net Direct Debt per Capita in

Constant Dollars 335.92 384.27 405.23 444.20 449.50

* stated in millions
Condition of Capital
Assets
Indicators
Condition of Capital Assets Indicators

Capital assets are real or personal property that have a value equal to or greater than the capitalization threshold for the particular
classification of the asset and have an estimated useful life of greater than one year.
The county has invested in a broad range of capital assets used in the county’s operations, including:
 Land and land improvements
 Buildings and building improvements
 Facilities and other improvements
 Infrastructure
 Construction in progress
 Leasehold improvements
 Site Improvements
 Personal property
o Furniture and equipment
o Vehicles and boats
o Software developed or obtained for internal use
o Other assets:
1) Works of art and historical treasures
2) Library books and materials
3) Intangible assets

In addition, there are expenditures for operating equipment that are included in the maintenance and operating budget; these are not
included as they are not broken down separately in our annual audited financial statements.

Collin County builds a number of roads that, upon completion, are transferred to the cities of the county to maintain. They are not
capitalized on our books but are part of the construction in process until completion.
Collin County’s Status - Condition of Capital Assets

Capital Outlay
Funding for capital assets comes from both debt issued for specific capital expenditures (road construction, facilities, jail and
detention, technology, or other expenditures) and from operating accounts, such as permanent improvement. The Permanent
Improvement Fund is financed primarily by a portion of property taxes set aside for capital outlay. In 2007 we experienced a decline
in the percentage of capital expenditures analyzed against net operating expenditures. A continuing decline may lead to analysis as to
whether needed capital outlay is being deferred or if the decline is due to an inability to make large-scale purchases in a single year.
One issue may be the continuation of the Highway 121 toll project, which with its delays and confusion lead to a lower outlay for road
construction. Another cause might be the completion of large scale projects, such as the new courts facility coming on line in July
2007.
 Capital Outlay Collin County Trend
As a % of Operating Expenditures

40.00%
Very Positive
Positive
Marginal
30.00%
Negative
Very Negative
20.00%

Warning Trend
10.00% Decline in capital spending as
2003 2004 2005 2006 2007 % of operating expenditures

2003 2004 2005 2006 2007

Capital Outlay * $ 23,383 $ 25,672 $ 42,058 $ 79,424 $ 50,708

Net Operating Expenditures * $ 176,783 $ 208,686 $ 266,237 $ 262,552 $ 263,326

Capital Outlay as a % of Net

Operating Expenditures 13.23% 12.30% 15.80% 30.25% 19.26%

* stated in millions
Economic Base
Indicators
Economic Base Indicators

Economic base can also be identified as community resources; it includes economic and demographic information, such as population
and property values. By taking into account property values we describe the wealth of the county and its ability to generate revenues
from property taxes. By the same token we understand that as the population increases so does the demand for services, roads,
facilities, open space, and a myriad of other functions performed by the County. Changes in these characteristics can be difficult to
formulate into trend indicators. Evaluating community resources helps us identify the following conditions:

- A decline in tax base as measured by assessed values.

- A need to assess the County’s response to economic conditions affecting the state and the country.
- A need to shift priorities or service delivery methods because of age, size, or income of residents.

The following indicators represent the ones for which data is included in our audited annual financial report.
Collin County’s Status – Community Resources

Population
Collin County’s population continues to growth at a rapid pace, with an average of 2,867 people moving into the County each month.
There are some indications that this has slowed in FY 2008 as the credit crisis has changed the environment for moving in or moving
up. This pace of growth places a tremendous strain on infrastructure and demand for services, as evidenced by earlier graphs and
comments showing the increasing costs, debt and capital construction. Plano, our largest city at this time, is at build-out. However,
McKinney, the County Seat, has built on approximately 40% of its land and is about 50% larger than the City of Plano territory in
terms of square miles. It is estimated at build out in 20-30 years that McKinney will be the fourth largest city in the DFW metroplex,
behind only Dallas, Fort Worth and Arlington. It is expected that the opening of the Highway 121 toll road will reduce the commute
time to DFW Airport, bringing further population increases into the County.

Assessed Property Values

Assessed valuation per capita in constant dollars decreased until 2007, when it jumped significantly. There has been a reduced
building boom since then, as the credit crisis and building industry goes through one of its periodic contractions.
 Population Collin County Trend
800,000
Very Positive
Positive
700,000 Marginal
Negative
600,000
Very Negative

Warning Trend
500,000 Rapid Change in
2003 2004 2005 2006 2007
Population

2003 2004 2005 2006 2007

Population 597,322 628,426 659,457 690,500 724,900

 Assessed Valuation per Capita Collin County Trend
In Constant Dollars

90,000
Very Positive
Positive
85,000 Marginal
Negative
80,000 Very Negative

75,000 Warning Trend

Declining or negative growth in
70,000 property tax assessments
2003 2004 2005 2006 2007

2003 2004 2005 2006 2007

Assessed Value (000s) 46,727,187 49,168,855 52,275,034 56,237,472 68,657,179

Consumer Price Index 1.00 1.03 1.06 1.10 1.13
In Constant Dollars $ 46,727,187 $ 47,736,752 $ 49,316,070 $ 51,124,975 $ 60,758,565
Population 597,322 628,426 659,457 690,500 724,900

Assessed Value per Capita in

Constant Dollars 78,227.80 75,962.41 74,782.84 74,040.51 83,816.48

Assessed Value per Capita in

Current Dollars 78,227.80 78,241.28 79,269.81 81,444.56 94,712.62

* stated in millions
Conclusions
Conclusions

When viewed from the 30,000 foot level, the County continues to grow rapidly, with attendant increases in population, property
values, and revenues. With a comprehensive view of the annual financial statements, the financial picture of the County appears to be
healthy and wealthy. However, when we begin to look at the details and present the same information after adjusting for inflation,
some cracks begin to appear that will need to be watched to determine if there is a long-term effect that needs to be addressed sooner
rather than later.

For example, the following factors are reflected in the trend analysis:

- The percentage increase in real property assessed value for FY 2007 was 22.1% (FY 2006 increase was 7.6%).
- The average unemployment rate in Collin County for 2007 was 3.9% (3.8% in 2006).
- Property tax receipts for FY 2007 were $153.7 million, which is 8.8% higher than FY 2006 tax receipts of $141.2 million.

The County economy has not been affected as much as many parts of the nation by the current economic slowdown. The continuing
growth is evidenced by the double-digit increase in property assessed value. However, as we saw in 2003-2005, the effect of the
downturn was not felt here until sometime after the nationwide effect was felt in 2000-2001.

The County remains an attractive place for people to relocate and find employment; last year an average of 2,867 people moved into
the County each month. Growth continues to create challenges in keeping up with roads and other infrastructure needs.

To keep pace with the traffic needs of the County, in 2007 the preferred route for an outer loop to connect Interstate 35 with Interstate
30 was established. The Dallas North Tollway expanded again, adding a new section from State Highway 121 to US Highway 380;
expansion continues north of Highway 380. We are participating in the Highway 121 conversion to a 12.8 mile, six-lane toll road
connecting US Highway 75 on the east and the Dallas North Tollway on the west terminus. Frontage roads have been completed by
the County. The North Texas Tollway paid the state $3.2 billion for the right to complete and operate the Highway 121 toll road.
Collin County is expecting about $600 million of those funds for County projects.

Budgeted revenues in FY 2008 are $266.3 million, an increase of 15.7% over FY 2007 actual revenues of $230.2 million. Property
taxes account for the bulk of receipts, as 60.6% of the budgeted revenues are from property taxes.

Budgeted appropriations for FY 2008, which include expenditures and transfers out, total $303.9 million. The General Fund
appropriations total $155.9 million, or 51.3% of the total. Debt service is $39.6 million (13.0% of the total) and other funds, primarily
capital project funds, total $108.4 million, or 35.7% of the total.
Ever increasing health care costs for indigent residents of Collin County constitutes a major economic burden to the County. Reduced
federal and state funding has contributed to the increasing demands on County resources to provide the same level of services offered
in prior years. In spite of the demands on county services, the County enjoys a broad, healthy tax base that continues to provide
adequate revenues to support basic services. The County conservatively manages its resources, using cost containment practices
ranging from performance programs to position savings to offer ways to reduce or eliminate non-performing programs. As of
September 30, 2007, the unreserved fund balance for the General Fund was $101.1 million, or 64.8% of total General Fund
expenditures and transfers out. The management of the County has placed it in sound financial position to mitigate most economic
uncertainty. That does not mitigate the need for continuing close observation and examination of every expenditure to ensure the
money spent is spent wisely and properly.

In November 2007, the County presented a bond proposal to voters for new funding for facilities, roads and open space. The proposed
funding was for a total of $328.9 million, with $235.6 million for roads, $76.3 million for facilities, and $17.0 million for open space.
The bond proposal passed.

The County is currently participating with 11 other large counties to customize and implement a new case management software
system. The case management system is named the Comprehensive Integrated Justice System. Implemented in FY 2007 was the
probate court module. Go live for the civil courts process was completed in March 2008; future modules will include criminal courts,
justice of the peace, and ancillary related processes.

The tax rate for FY 2008 was continued at $0.245/$100; this is the same rate as in FY 2007, when the rate was reduced for the first
time in eight straight years of no change in the tax rate. Continuing pressure from rising health care costs, demand for constituent
services and road construction to meet the growing population may eventually cause the County to have to adjust the rate upward, but
for now the growth of the County and the increase in property values provides the majority of funding for expenditures.

Indicator
Revenue
1. Operating Revenue per
Capita
2. Tax Revenue per Capita
3. Restricted Operating
Revenues
4. Intergovernmental
Revenues per Capita
5. Capital Project Revenues
6. Fees and Permits Revenues
7. Charges for Services
Revenues
8. General Fund Revenue per
Capita
9. Road & Bridge Fund
Revenue per Capita
10. Uncollected Property
Taxes
Definitions and Source of Financial Indicators
(Note - CAFR is the Comprehensive Annual Financial Report)
Description Source Calculation
Taxes, licenses & permits, intergovernmental sources, charges for CAFR Operating Revenues / Total County Population
services, fines & forfeitures, and other miscellaneous sources.
Does not include revenues from proprietary activity.
Property, sales & use, excise, hotel/motel, motor vehicle, and other CAFR Tax Revenues / Total County Population
miscellaneous taxes are included. Does not include any proprietary
activity.
Revenues identified in special revenue funds that are restricted for CAFR Sum of All Special Revenue Fund Revenues
special purposes in accordance with state statutes or local
ordinances, including the Road Fund. Does not include revenue
from General Fund, capital project funds, or proprietary funds.
Intergovernmental revenues in all funds from grants and contracts CAFR Sum of All Intergovernmental Revenues /
with other governmental agencies. Does not include taxes, permit Total County Population
revenue, charges for services, or fines. Does not include revenue
from proprietary funds.
Financing for acquisition and construction of capital projects. CAFR Sum of All Revenues in Capital Funds
Includes bond proceeds, taxes, impact fees, grant funding, and
interest earnings. Excludes revenues in the General Fund, special
revenue funds (restricted), and proprietary funds.
Includes license & permit revenues for General Fund, special CAFR Sum of License & Permit Revenues
revenue funds, and capital funds. Proprietary funds not included.
Includes license & permit revenues and charges for services CAFR Sum of Charges for Services Revenues
revenues for General Fund, special revenue funds, and capital
funds. Proprietary funds are not included.
Taxes, licenses & permits, intergovernmental sources, charges for CAFR General Fund Revenue / Total County Population
services, fines & forfeitures, and other miscellaneous sources from
General Fund. Does not include transfers in from other funds.
Taxes, licenses & permits, intergovernmental sources, charges for CAFR Road & Bridge Fund Revenue / Total County
services, fines & forfeitures, and other miscellaneous sources from Population
Road Fund.
Percentage of property taxes not collected relative to taxes levied. CAFR Uncollected Property Tax / Total Property Tax Levied
Includes property tax for General Fund, as well as for the Road,
Jury Fund, Debt Service, and Permanent Improvement Funds.

Indicator
11. General Fund Revenue
Variance
Expenditures
12. Operating Expenditures
per Capita
13. General Fund
Expenditures per Capita
14. Road & Bridge
Expenditures per Capita
15. Capital Project
Expenditures per Capita
16. Employees per 1,000
Capita
17. Average Employee Salary
and Benefits – General Fund
Only
Operating Position
18. Operating Surplus –
General Fund only
Financial Indicators
Description Source Calculation
A comparison of actual General Fund revenues to projected CAFR Actual General Fund Revenue minus Projected
(budgeted) revenues. Does not include revenue from funds other Revenue
than General Fund.
Expenditures of funds for government programs, including law & CAFR Expenditures from all Governmental Funds / Total
justice, roads & roadways, community development, parks & County Population
recreation, social services, public health, general government,
capital, and debt service. Does not include internal service fund
expenses or inter-fund transfers.
The County’s General Fund expenditures, which include law & CAFR General Fund Expenditures / Total County Population
justice, parks & recreation, and general government operations.
Does not include any inter-fund transfers.
Expenditures from the County’s Road & Bridge Fund, including CAFR Road & Bridge Fund Expenditures / Total County
road maintenance and design and construction of new Population
transportation projects in the unincorporated parts of the County.
Also includes expenditures for work done in other jurisdictions that
are reimbursed to the County.
Includes capital expenditures in the capital funds. Does not include CAFR Capital Expenditures / Total County Population
capital projects in the Road & Bridge Fund or Permanent
Improvement Fund.
Number of full-time equivalent (FTE) positions in all Collin CAFR FTE / (Total County Population/1,000)
County programs and funds, as of October 1 of each year.
Salaries, wages, employee benefits (including clothing, vehicle CAFR Personnel Expenditures / Operating Expenditures
allowances, accrued leave, and health insurance), and employer
portion of taxes and TCDRS retirement.
Operating surplus created from revenues including taxes, licenses CAFR Operating Revenues and Operating Expenditures
& permits, intergovernmental sources, charges for services, fines &
forfeitures, and other miscellaneous sources including transfers in
but not including proprietary activity revenues, less operating
expenditures, defined as all expenditures including transfers out.

Indicator
19. Liquidity Ratio – General,
Road & Bridge, Special
Revenue, and Capital Projects
20. Current Ratio – General,
Road & Bridge, Special
Revenue, and Capital Projects
21. Current Liabilities as a %
of Operating Revenues
22. Employee Benefits as a %
of Personnel Expenditures
23. Fund Balance – General
Fund
24. Fund Balance – Road &
Bridge Fund
31. Retained Earnings –
Internal Service Funds
(Insurance Funds)
Financial Indicators
Description Source Calculation
Liquid assets for general government operations, including the CAFR Cash & Short-Term Investments + Amounts Due from
General Fund, Road & Bridge Fund, Special Revenue Fund and Other Funds + Amounts Due from Other Governments
Capital Projects Fund. Measure of ability to pay current liabilities - Amounts Due to Other Funds – Accounts Payable -
with cash (on hand and in checking accounts) and short-term Vouchers & Warrants Payable – Accrued Liabilities –
investments (certificates of deposit and securities that will be Taxes Payable
redeemed or sold within the next twelve months). Current
liabilities are the amounts we owe that are expected to be paid off
within the next twelve months, including such items as accounts
payable, accrued liabilities, and amounts due to other funds.
Current assets and liabilities for general government operations. CAFR Cash & Short-Term Investments + Amounts Due from
Current ratio measures ability to pay off current liabilities with Other Funds + Amounts Due from Other Governments
current assets. Current assets are defined as cash and amounts that + Accounts Receivable - Amounts Due to Other Funds
we own that can be converted into cash within the next twelve – Accounts Payable - Vouchers & Warrants Payable –
months, and include such items as short-term investments, Accrued Liabilities – Taxes Payable
accounts receivable, and amounts due from other funds.
Current liabilities and operating revenues for general government CAFR Current Liabilities (Accounts Payable, Vouchers
operations. Operating revenues include all revenues other than Payable, Warrants Payable, Accrued Liabilities, Taxes
operating transfers in and revenues restricted or mandated for Payable, and Amounts Due to Other Governments) /
specific spending purposes. Current liabilities as a percentage of Operating Revenues
operating revenues measures our commitment to pay off current
bills with revenues received during the year. An increase in the
ratio indicates liquidity problems such as inappropriate use of
short-term borrowing or deficit spending.
Employee benefits include the employer’s share of social security CAFR Employee Benefits / Total Personnel Expenditures
and Medicate (FICA), retirement, health insurance (including
vision, dental, and long-term care), disability insurance, and
workers’ compensation insurance. Personnel expenditures include
compensation paid to employees (full and part-time) as salary,
hourly, merit, longevity, overtime, auto allowance.
Unreserved and undesignated ending fund balance for the General CAFR Fund Balances as of September 30
Fund.
Unreserved and undesignated ending fund balance for the Road & CAFR Fund Balances as of September 30
Bridge Fund.
Includes year-end retained earnings for the County’s CAFR Retained Earnings Balances as of September 30
Internal service funds, which hold the monies paid for the county
self-insurance and claim funds.

Indicator
Debt Structure and Leave Liabilities
26. Long-Term Debt as a %
of Taxable Assessed
Valuation
27. Long-Term Debt per
Capita
28. Debt Service Costs
29. Debt Service Costs as %
of Property Tax Revenues
30. Overlapping Debt per
Capita
31. Overlapping Debts as a %
of Taxable Assessed
Valuation
32. Unused Paid Employee
Leave Liability
Condition of Capital Assets
33. Repair and Maintenance
Costs
34. Funding for Capital
Outlay
Financial Indicators
Description Source Calculation
Utilized to determine if we have sufficient taxing power to afford CAFR Long-Term Debt / Taxable Assessed Valuation
future and current debt.
An accumulation of long-term debt evidenced by general CAFR Sum of Long-Term Debt / Population
obligation bonds, tax anticipation notes and special assessment
bonds. Does not include installment contracts payable, capital
leases, and long-term compensation payable.
Expenditures for the retirement of long-term debt. CAFR Sum of the payments of principal and interest
Debt service costs are the payments of principal and interest for CAFR Debt service costs / Property Tax Revenues
payment of long-term debt. Measures the ability of our property
tax revenues to meet annual debt payments.
An accumulation of long-term debt evidenced by bonds and CAFR Overlapping Debt for all Jurisdictions / County
anticipation notes for all taxing districts in Collin County. Does not Population
include installment contracts payable, capital leases, special
assessment bonds, and long-term compensation payable.
Long-term debt for all taxing districts in Collin County, excluding CAFR Overlapping Debt for all Jurisdictions / Taxable
installment contracts payable, capital leases, special assessment Assessed Valuation
bonds, and long-term compensation payable.
A calculation of the accumulated earned and unused vacation leave CAFR Sum of Unused Vacation Leave and Compensatory
and compensatory time off for all County employees. Time Off / Budgeted FTE
Does not include holiday pay, sick leave, or other related time or
benefits.
Expenditures associated with facilities maintenance, equipment CAFR Sum of All Maintenance Expenses (Excludes Utilities)
rental, data processing repair, parks maintenance, and road
maintenance. Does not include major capital projects or
acquisitions.
Expenditures associated with the acquisition or construction of CAFR Sum of all Capital Project Fund Expenditures
equipment, capital facilities, or County infrastructure. Does not
include repair and maintenance activity in governmental funds or
any activity in internal service funds.
Economic Base
35. Population Population of incorporated and unincorporated areas in the County, CAFR Population
estimated as of April 1 of the year reported.
36. Assessed Property Values The valuation of all real property located in Collin County as CAFR Total Assessed Values
determined by the County Assessor. Does not include real property
owned by state and local governments, schools, fire and other
districts, and religious and other qualified organizations.