According to the 2014-2018 American Community Survey, the 2018 median household income in the County was $103,445 which ranks near the top among regions in the Commonwealth of Virginia, and the entire United States. Employment within the service area is well diversified, and as of June 2020, the average unemployment rate was 6.4%, which is higher than prior year because of the coronavirus pandemic but is still below both the national and Virginia state-wide levels. The total civilian labor force in Prince William County is currently estimated at approximately 249,000 persons, up 0.3% from 2019 and 10.4% from 2011. Based on the most current available data, the County has experienced improvement in the residential real estate market, as the average assessed value in 2020 was up 46.1% from the low point in 2011. The Authority’s major customers are well-established entities consisting of county schools, local utilities, multi-family housing complexes, county parks and swimming pools, internet data centers, retail outlets and a hospital. In total, the ten largest customers represent over 6% of total consumption revenues. Overall, the Authority’s customer base is primarily residential accounts, representing more than 90% of the accounts. The Authority continues to experience growth in customer accounts, with an additional 1,134 accounts added during fiscal year 2020, representing an increase of 1.2% over the prior year. The Authority’s emergency planning and preparedness ensure the continuity of operations and delivery of essential services to our customers during the coronavirus pandemic. The Authority’s financial position and operating results reflect sufficient funds available to pay for operating costs and long-term debt, as well as to invest in the infrastructure improvements needed to maintain and replace critical capital assets. Long-term Financial Planning In order to facilitate long-term planning, the Authority maintains a model of its finances projecting 20 years into the future, with particular attention to the immediate five year period. This model includes projections of water and sewer capacity utilization, system growth and related availability fee revenue, operating revenues and expenses, debt service requirements, and cash flows. The Authority also maintains and updates a Capital Improvements Program (CIP) on an annual basis, which details capital projects that are necessary for system expansion, rehabilitation and improved system reliability. This program details planned spending for the ensuing five year period, and aggregate capital spending anticipated for identified projects in subsequent years. The Authority uses this data to facilitate projection of necessary rate increases and additional capacity requirements, to ensure proper debt coverage as well as to provide for adequate funding for the Authority’s ongoing activities and obligations. The Authority uses a Strategic Plan developed with input from the Board of Directors, management, and staff as a tool to ensure that financial planning will support the future needs, priorities and vision of the organization. Within the plan, a set of goals, both financial and operational, are created each year to prioritize future actions to align with the strategic vision. The Authority maintains a AAA/Aaa rating from Standard & Poor’s Ratings Services (S&P) and Moody’s Investors Service, Inc. (Moody’s), respectively, on its outstanding revenue bonds, the highest ratings that can be awarded to local governments. This further demonstrates and validates the Authority’s sound financial condition and the positive impact of long-term financial planning. Internal Control Structure and Budgetary Controls The Authority’s management is responsible for establishing and maintaining a system of internal accounting controls. The objectives of internal controls are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and financial records for preparing financial statements and maintaining asset accountability are reliable. The concept of reasonable assurance recognizes that estimates and judgments made by management are required to assess the expected benefits and related costs of internal accounting control procedures and that the cost of a control should not exceed the benefits likely to be derived. Management reviews internal controls on a continuing basis. 2 INTRODUCTORY SECTION LETTER OF TRANSMITTAL
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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