Essay About City Of Henderson And Government’S Total Net Assets

Local Government
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Local government is legal entity created as a Body Corporate. The council and the Administration make up the two sides. Both sides have defined roles as to what they can and cannot do. Thereby, creating a separation of powers between the two sides. In North Carolina, I chose the city of Henderson. My analysis will be for years 2012-2014 respectively. This local government’s budget will consist of the trends of revenue sources and balances (funds, surplus, deficits and how they impact the government budget. We will look at the ethical practices of financial policy on taxes, fees and charges. Then explore the internal/external challenges of revenue sources. Whereby, creating a vivid picture of the peaks and valleys in the City of Henderson’s financial positon located in North Carolina.First, the trends of revenue sources and balances (funds, surplus, deficits and their impact on the government budget.) The city of Henderson encompasses approximately 10 square miles and is in the county seat of Vance County in North Carolina. The city is empowered to levy a property tax on real and certain personal properties within its boundaries. It is also empowered to levy various fees and rates for services to its citizens and customers. (Table of Contents: Exhibits-Introductory Section: Letter of Transmittal pages (c); (d).) The city is a full service city providing police, fire, water treatment and distribution, sanitary sewer collection and treatment, street maintenance, engineering, household sanitation services, including recycling, garage and fleet services, planning and community development, code compliant and general administration, finance and human resources. The city is home to nearly 1,000 businesses including approximately 15 manufacturers, 240 retailers, 250 service businesses and 8 distribution facilities, six major banks and several credit unions. Major manufacturing products include home furnishings, glass, pet food and Solar panels. The City of Henderson’s Revenue Sources are as follows: (According to Figure 3 pg. 9 FY2014)Program Revenues:Charges for servicesOperating Grants and ContributionsCapital Grants and ContributionsGeneral Revenue:Property TaxOther TaxGrants and Contributions not restricted to specific programsOtherExpenses are as follow:General GovernmentPublic SafetyPlanning and Community DevelopmentTransportation and OtherEnvironment ProtectionRecreation and ParksLocal Agency and Shared ProgramsInterest on Long Term DebtWaterSewerRegional Water System.AssetsFor FY2012-2014, the assets of the city of Henderson exceeded its liabilities at the close of the fiscal years by $82,440,581; $94,575,578; $91,422,638 respectively. (See Table 1 pg. 99 FY2014)In 2012, the government’s total net assets increased by $9,822,340.In 2013, the government’s total net assets increased by $12,134,997, primarily due to increases in the business type activities net position and the city being granted ownership of the H. Leslie Perry Memorial Library by the Embassy foundation. The library transaction increased the city net position by $6,512,524.In 2014, the government’s total net assets decreased by $3,451,260, primarily due to recognition of an extraordinary event in business-type activities. This extraordinary event was due to the write-off of the balance remaining on a note receivable for water reservation fees in the amount of $6,337,174 and the accrual of a contingent liability in the form of a refund payable for portion of water reservation fees previously received in the amount of $1,853,416.DebtIn 2012, the city of Henderson’s total debt decreased by $5,200,740 (24.5%) during the current fiscal year.In 2013, the city of Henderson’s total debt decreased by $830,125 (5.2%) during the current fiscal year. *In 2013 the city has several capital projects underway in its enterprise funds which involve the issuance of new debt in the form of revolving loan agreements; however, the draw-down phase has not been completed and repayment has not begun. The loans total: $21,563,928 @ zero percent interest and $1,000,000 @ 2% percent interest.In 2014, the city of Henderson’s debt increased by $8,830,463 (51.2%) during the fiscal year.Second, is the ethical practice of the financial policy on taxes, fees and charges. In the city of Henderson, the city manager is appointed by the city council and serves at its pleasure. It is a merit basis position and the appointment serves as the City’s Chief Executive Officer. The City manager is responsible for providing recommendations to the Mayor and City Council on policy matters, implementing policies and laws as adopted by them and providing leadership and management oversight for the day-to-day operations of the various departments, agencies, and services provided to the citizens and customers. The city is empowered to levy a property tax on real and certain personal properties within its boundaries. It is also empowered to levy various fees and rates for services to its citizens and customers. North Carolina General Statutes enable the city to extend its corporate limits via voluntary and/or involuntary annexation, which occurs periodically when deemed appropriate by the governing body. Conversely, the ethical practices of the City of Henderson are in accordance with the legality of The North Carolina General Statutes. (See: Introductory Section: Letter of Transmittal-letter (b).)