Audited Financial Statements for Fiscal Year Ending 2021

10 COUNTY OF JOHNSTON Smithfield , North Carolina Financial Statements June 30 , 2021PageCOUNTY OF JOHNSTON , NORTH CAROLINA BOARD AND OFFICERS June 30 , 2021 BOARD OF COUNTY COMMISSIONERS RS Butch Lawter , Jr , Chairman Patrick E Harris , Vice - Chairman Larry Wood Tony Braswell Ted G Godwin Fred J Smith , Jr Richard D Braswell OFFICERS County Manager Rick J Hester Finance Director J Chad McLamb , CPA Register of Deeds Craig Olive Tax Administrator Jocelyn Andrews Sheriff Steve BizzellPageCOUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Exhibit s Page s INDEPENDENT AUDITORS REPORT 1 - 3 MANAGEMENT'S DISCUSSION AND ANALYSIS 4 - 15 BASIC FINANCIAL STATEMENTS Government - wide Financial Statements Statement of Net Position 1 16 Statement of Activities 2 17 Fund Financial Statements Balance Sheet - Governmental Funds 3 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 3a 19 Statement of Revenues , Expenditures , and Changes in Fund Balances - Governmental Funds 4 20 Reconciliation of the Statement of Revenues , Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 4a 21 Statement of Revenues , Expenditures and Changes in Fund Balances - Budget And Actual - General Fund 5 22 Statement of Net Position - Proprietary Funds 6 23 Statement of Revenues , Expenses , and Changes in Fund Net Position - Proprietary Funds 7 24 Statement of Cash Flows - Proprietary Funds 8 - 9 25 - 26 Statement of Fiduciary Net Position - Fiduciary Funds 10 27 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 11 28 NOTES TO THE FINANCIAL STATEMENTS 29 - 82 REQUIRED SUPPLEMENTAL FINANCIAL DATA Schedule of Countys Proportionate Share of Net Pension Asset LGERS A - 1 83 Schedule of the ABC Boards Proportionate Share of Net Pension Liability LGERS A - 2 84 Schedule of the TDAs Proportionate Share of Net Pension Liability LGERS A - 3 85PageCOUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Exhibit s Page s REQUIRED SUPPLEMENTAL FINANCIAL DATA continued Schedule of the Airport Authoritys Proportionate Share of Net Pension Liability LGERS A - 4 86 Schedule of County Contributions LGERS A - 5 87 Schedule of ABC Board Contributions LGERS A - 6 88 Schedule of TDA Contributions LGERS A - 7 89 Schedule of Airport Authority Contributions LGERS A - 8 90 Schedule of the Countys Proportionate Share of the Net Pension Liability ROD A - 9 91 Schedule of County Contributions ROD A - 10 92 Schedule of Changes in Total Pension Liability - Law Enforcement Officers Special Separation Allowance A - 11 93 Schedule of Total Pension Liability as a Percentage of Covered Payroll - Law Enforcement Officers Special Separation Allowance A - 12 94 Schedule of Changes in the Total OPEB Liability and Related Ratios A - 13 95 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES General Fund - Schedule of Revenues , Expenditures and Changes in Fund B - 1 96 - 106 Balance - Budget and Actual Schedules of Revenues , Expenditures and Changes in Fund Balances - Budget B - 1a 107 and Actual - Revaluation Fund Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual - School Bond Fund B - 2 108 Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP - ARPA Coronavirus SLFRF B - 3 109 Combining Balance Sheet - Non - Major Governmental Funds C - 1 110 Combining Statement of Revenues , Expenditures , and Changes in C - 2 111 Fund Balances - Non - Major Governmental FundsPagePage pageNumber5COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Combining Balance Sheets - Non - Major Special Revenue Funds C - 3 112 Combining Statement of Revenues , Expenditures , and Changes in Fund Balances - Non - Major Special Revenue Funds C - 4 113 Schedules of Revenues , Expenditures and Changes in Fund Balances - Budget and Actual Moccasin Creek Drainage District - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 5 114 Heritage Commission Fund - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 6 115 Communication Fund - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 7 116 Research Training Zone - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 8 117 Voluntary Ag District - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 9 118 Fines and Forfeitures - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 10 119 Representative Payee Fund - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 11 120 Deed of Trust Fund - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual C - 12 121 Combining Balance Sheet - Non - Major Capital Projects Funds C - 13 122 Combining Statement of Revenues , Expenditures , and Changes in Fund Balances - - Non - Major Capital Projects Funds C - 14 123 Schedule of Revenues and Expenditures - Budget and Actual Industrial Development Infrastructure - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP C - 15 124 Public Safety Center Project - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP C - 16 125PagePage pageNumber6COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Enterprise Funds Combining Statement of Net Position - Non - major Enterprise Funds D - 1 126 Combining Statement of Revenues , Expenses , and Changes in Net Position - Non - major Enterprise Funds D - 2 127 Combining Statement of Cash Flows - Non - major Enterprise Funds D - 3 128 - 129 Administrative Fund - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual Non - GAAP D - 4 130 Solid Waste Fund - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual Non - GAAP D - 5 131 - 132 Landfill Entrance & Attendant Facilities - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 5a 133 Landfill Site Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 5b 134 Phase 6 - A MSW Landfill Site Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 5c 135 Water Fund - Schedule of Revenues , Expenditures and Changes in Fund Balance - Budget and Actual Non - GAAP D - 6 136 - 137 WTP 25 MGD Exp Future Planning - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6a 138 NCDOT Waterline Projects - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6b 139 WTP 20 MGD Upgrade 6d - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6c 140 WTP Efficiency Project - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6d 141 Post Clearwell Chemical Feed Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6e 142 AWIA Risk & Resiliency Assessment - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6f 143 NC 96 Economic Development Water Main Extension - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6g 144PagePage pageNumber7COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Buffalo Road BPS & Transmission Main - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6h 145 385 West Transmission Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6i 146 White Memorial Church Road Water Main - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 6j 147 Wastewater Treatment Fund - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7 148 - 149 Wastewater SDF Capital Reserve Fund - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7a 150 Biosolids Facilities Improvement - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7b 151 Buffalo WWPS Upgrade and Force Main Replacement - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7c 152 Pine Level Wastewater Pump Station Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7d 153 McGees Crossroads Sewer Upgrade - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7e 154 Swift Creek Interceptor - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7f 155 WWTP 4MGD Expansion - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7g 156 Selma Equalization & WWPS Facilities - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7h 157 20 70 BUS 70 Bypass Force Main - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7i 158 East Clayton WWPS Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7j 159 Landfill Equalization & WWPS Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7k 160PagePage pageNumber8COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Reedy Branch WWPS & FM - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7l 161 WWTP Flood Mitigation FEMA - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7m 162 NC 42 Sewer Line School Bond Project - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7n 163 Sewer Rehabilitation Sewer - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7o 164 Olive Branch WWPS & FM Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7p 165 ECIA Transmission Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7q 166 Wilsons Mills WWPS Upgrades - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7r 167 Wastewater Hydraulic Modeling - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7s 168 Selma Flow Equalization & WWPS Facilities - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7t 169 Utility Capital Reimbursement - Eastfield - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 7u 170 Water District Funds - Combining Statement of Net Position D - 8 171 Water District SDF Capital Reserve Fund - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 8a 172 Elevation Water District FY 18 Hydraulic Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 8b 173 Buffalo Water District FY 18 Hydraulic Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 8c 174 Wilsons Mills Water District FY 18 Hydraulic Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 8d 175 Wilsons Mills Water District WTP Service Line - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 8e 176PagePage pageNumber9COUNTY OF JOHNSTON , NORTH CAROLINA TABLE OF CONTENTS Year Ended June 30 , 2021 Exhibit s Page s COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES continued Ingrams WD 2018 Hydraulic Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 8g 178 McGees WD Ph 1 & 2 - NC 210 WM Improvements - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 8h 179 Section 8 Housing Assistance Payments Fund - Project No NC 19 - V164 - 006 - Schedule of Revenues and Expenditures - Budget and Actual Non - GAAP D - 9 180 Water Districts - Consolidating Information Statement of Net Position - Combined Water District Operating Fund E - 1 181 - 182 Schedule of Revenues and Expenditures - Combined Water District Operating Fund E - 2 183 - 184 Combining Statement of Fiduciary Assets and Liabilities - Custodial Funds F - 1 185 Combining Statement of Changes in Fiduciary Assets and Liabilities - Custodial Funds F - 2 186 OTHER SCHEDULES Schedule of Ad Valorem Taxes Receivable G - 1 187 Analysis of Current Tax G - 2 , G - 2a 188 - 189 Ten Largest Taxpayers G - 2b 190 COMPLIANCE SECTION Report On Internal Control Over Financial Reporting And On Compliance and Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards 191 - 192 Independent Auditors ' Report on Compliance with Requirements Applicable to each Major Federal Program and Internal Control over Compliance in Accordance with Uniform Guidance and the State Single Audit Implementation Act 193 - 195 Independent Auditors ' Report on Compliance with Requirements Applicable to each Major State Program and Internal Control over Compliance in Accordance with OMB Uniform Guidance and the State Single Audit Implementation Act 196 - 197 Schedule of Findings and Questioned Costs 198 - 202 Corrective Action Plan 203 - 204 Summary Schedule of Prior Audit Findings 205 Schedule of Expenditures of Federal and State Awards 206 - 210Page0Thompson , Price , Scott , Adams & Co , PA PO Box 398 1626 S Madison Street Whiteville , NC 28472 Telephone 910 642 - 2109 Fax 910 642 - 5958 Alan W Thompson , CPA R Bryon Scott , CPA Gregory S Adams , CPA INDEPENDENT AUDITORS ' REPORT To the Board of County Commissioners County of Johnston Smithfield , North Carolina Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities , the business - type activities , the aggregate discretely presented component units , each major fund , and the aggregate remaining fund information of the County of Johnston , North Carolina , as of and for the year ended June 30 , 2021 , and the related notes to the financial statements which collectively comprise the County of Johnstons basic financial statements as listed in the table of contents Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design , implementation , and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement , whether due to fraud or error Auditors Responsibility Our responsibility is to express opinions on these financial statements based on our audit We did not audit the financial statements of the Johnston County ABC Board Those statements were audited by other auditors whose report has been furnished to us , and our opinion , insofar as it relates to the amounts included for the Johnston County ABC Board , is based solely on the report of the other auditors We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement The financial statements of Johnston County ABC Board were not audited in accordance with Government Auditing Standards An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditors judgment , including the assessment of the risks of material misstatement of the financial statements , whether due to fraud or error In making those risk assessments , the auditor considers internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances , but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control Accordingly we express no such opinion An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluating the overall presentation of the financial statements Members 1 American Institute of CPAs - NC Association of CPAs - AICPA Division of FirmsPage1We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions Opinions In our opinion , based upon our audit and the report of the other auditors , the financial statements referred to above present fairly , in all material respects , the respective financial position of the governmental activities , business - type activities , the aggregate discretely presented component units , each major fund , and the aggregate remaining fund information of the County of Johnston , North Carolina as of June 30 , 2021 , and the respective changes in financial position and cash flows , where applicable , thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Managements Discussion and Analysis on pages 4 through 15 , the Local Government Employees Retirement System Schedules of the Countys Proportionate Share of the Net Pension Liability and County Contributions , the Register of Deeds Supplemental Pension Fund Schedule of the Countys Proportionate Share of the Net Pension Asset and Schedule of County Contributions , the Law Enforcement Officers Special Separation Allowance schedules , and the Other Postemployment Benefits Schedule of Changes in the Total OPEB Liability and Related Ratios on pages 83 through 95 , respectively , be presented to supplement the basic financial statements Such information , although not a part of the basic financial statements , is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational , economic , or historical context We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America , which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements responses to our inquiries , the basic financial statements , and other knowledge we obtained during our audit of the basic financial statements We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County of Johnstons basic financial statements The combining and individual fund statements , budgetary schedules , other schedules as well as the accompanying Schedule of Expenditures of Federal and State Awards , as required by Title 2 US Code of Federal Regulations CFR Part 200 , Uniform Administrative Requirements , Cost Principles , and Audit Requirements for Federal Awards are presented for purpose of additional analysis and are not a required part of the basic financial statements 2Page2The combining and individual fund financial statements , budgetary schedules , other schedules and the Schedule of Expenditures of Federal and State Awards are the responsibility of management and were derived from and related directly to the underlying accounting and other records used to prepare the basic financial statements Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures , including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves , and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors In our opinion , based on our audit , the procedures performed as described above , and the report of the other auditors , the combining and individual fund financial statements , budgetary schedules , other schedules , and the Schedule of Expenditures of Federal and State Awards are fairly stated , in all material respects , in relation to the basic financial statements as a whole Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated January 4 , 2022 , on our consideration of the County of Johnstons internal control over financial reporting and on our tests of its compliance with certain provisions of laws , regulations , contracts , and grant agreements and other matters The purpose of the report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing , and not to provide an opinion on internal control over financial reporting or on compliance That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County of Johnstons internal control over financial reporting and compliance ______________________________________ Thompson , Price , Scott , Adams & Co , PA Whiteville , NC January 4 , 2022 3Page3JOHNSTON COUNTY , NORTH CAROLINA MANAGEMENT'S DISCUSSION AND ANALYSIS As management of Johnston County , we offer readers of Johnston County's financial statements this narrative overview and analysis of the financial activities of Johnston County for the fiscal year ended June 30 , 2021 We encourage readers to read the information presented here in conjunction with additional information that we have furnished in the County's financial statements , which follow this narrative Financial Highlights ? The assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources of Johnston County's primary government at the close of the fiscal year by 221,806 net position ? The primary government's total net position increased by 67,772,517 , primarily due to increase in property tax , sales tax , and charges for services ? As of the close of the current fiscal year , Johnston County's governmental funds reported combined ending fund balances of 239,366,240 , an increase of 89,650,560 in comparison with the prior year Approximately 3263 percent of this total amount , or 78,116,283 , is restricted or non - spendable ? At the end of the current fiscal year , legally available fund balance for the General Fund was 129,951,222 , or 5290 percent of total general fund expenditures for the fiscal year ? Johnston County's total debt increased by 69,345,636 during the current fiscal year includes premium on issuance as well The key factors in this increase was primarily due to the issuance of clean water revolving loans to finance the construction of water and wastewater facility improvements , the issuance of School Bonds , and the issuance of bonds for the Detention Center , offset by debt service payments made for the year The County issued 36,000,000 in School and Community College bonds , 35,105,000 in Detention Center bonds , and refunded most enterprise fund debt during the year The County also received 128 million in draw loan loans associated with Water , Waste Water , and Water district projects ? Johnston County maintained its Aa1 from Moodys Investors and maintained their AA + rating from Standard and Poor's rating services Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to Johnston County's basic financial statements The County's basic financial statements consist of three components ; 1 government - wide financial statements , 2 fund financial statements , and 3 notes to the financial statements see Figure 1 The basic financial statements present two different views of the County through the use of government - wide statements and fund financial statements In addition to the basic financial statements , this report contains other supplemental information that will enhance the reader's understanding of the financial condition of Johnston County Page4Required Components of Annual Financial Report Figure 1 Management's Basic Discussion and Financial Analysis Statements Government - wide Notes to the Fund Financial Financial Statements Financial Statements Statements Summary Detail Basic Financial Statements The first two statements Exhibits 1 and 2 in the basic financial statements are the Government - wide Financial Statements They provide both short and long - term information about the County's financial status The next statements Exhibits 3 through 11 are Fund Financial Statements These statements focus on the activities of the individual parts of the County's government These statements provide more detail than the government - wide statements There are four parts to the Fund Financial Statements 1 the governmental funds statements ; 2 the budgetary comparison statements ; 3 the proprietary fund statements ; and 4 the fiduciary fund statements The next section of the basic financial statements is the notes The notes to the financial statements explain in detail some of the data contained in those statements After the notes , supplemental information is provided to show details about the County's non - major governmental funds and internal service funds , all of which are added together in one column on the basic financial statements Budgetary information required by the General Statutes also can be found in this part of the statements 5Page5Following the notes is the required supplemental information This section contains funding information about the County's pension plans Government - wide Financial Statements The government - wide financial statements are designed to provide the reader with a broad overview of the County's finances , similar in format to a financial statement of a private - sector business The government - wide statements provide short and long - term information about the County's financial status as a whole The two government - wide statements report the County's net position and how it has changed Net position is the difference between the County's total assets and deferred outflows of resources and the total liabilities and deferred inflows of resources Measuring net position is one way to gauge the County's financial condition The government - wide statements are divided into three categories 1 governmental activities ; 2 business - type activities ; and 3 component units The governmental activities include most of the County's basic services such as public safety , and general administration Property taxes and state and federal grant funds finance most of these activities The business - type activities are those that the County charges customers to provide These include the water and sewer and landfill services offered by Johnston County The final category is the component units Although legally separate from the County , the ABC Board is important to the County because the County is financially accountable for the Board by appointing its members and because the Board is required to distribute its profits to the County The County then distributes the profits among the County and municipalities in the County The County also reports the Tourism Development Authority and the Airport Authority as component units The government - wide financial statements are on Exhibits 1 and 2 of this report Fund Financial Statements The fund financial statements provide a more detailed look at the County's most significant activities A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives Johnston County , like all other governmental entities , uses fund accounting to ensure and reflect compliance or non - compliance with finance - related legal requirements , such as the General Statutes or the County's budget ordinance All of the funds of Johnston County can be divided into three categories governmental funds , proprietary funds , and fiduciary funds Governmental Funds - Governmental funds are used to account for those functions reported as governmental activities in the government - wide financial statements Most of the County's basic services are accounted for in governmental funds These funds focus on how assets can readily be converted into cash flow in and out , and what monies are left at year - end that will be available for spending in the next year Governmental funds are reported using an accounting method called modified accrual accounting This method also has a current financial resources focus As a result , the governmental fund financial statements give the reader a detailed short - term view that helps him or her determine if there are more or less financial resources available to finance the County's programs The relationship between governmental activities reported in the Statement of Net Position and the Statement of Activities and governmental funds is described in a reconciliation that is a part of the fund financial statements Johnston County adopts an annual budget for its General Fund , as required by the General Statutes The budget is a legally adopted document that incorporates input from the citizens of the County , the management of the County , and the decisions of the Board about which services to provide and how to pay for them It also authorizes the County to obtain funds from identified sources to finance these current period activities The budgetary statement provided for the General Fund demonstrates how well the County complied with the budget ordinance and whether or not the County succeeded in providing the services as planned when the budget was adopted The budgetary comparison statement uses the budgetary basis of accounting and is presented using the same format , language , and classifications as the legal budget document The statement shows four columns 1 the original budget as adopted by the board ; 2 the final budget as amended by the board ; 3 the actual resources , charges to appropriations , and ending balances in the General Fund ; and 4 the difference or variance between the final budget and the actual resources and charges Proprietary Funds - Johnston County has one kind of proprietary fund Enterprise Funds are used to report the same functions presented as business - type activities in the government - wide financial statements Johnston County uses enterprise funds to account for its water and sewer activity and for its landfill operations These funds are the same as those separate activities shown in the business - type activities in the Statement of Net Position and the Statement of Activities 6Page6Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government Johnston County has our fiduciary funds , all of which are custodial funds Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government - wide and fund financial statements The notes to the financial statements start on page 29 of this report Other Information - In addition to the basic financial statements and accompanying notes , this report includes certain required supplementary information concerning Johnston County's progress in funding its obligation to provide pension benefits to its employees Required supplementary information can be found beginning on page 83 of this report Government - Wide Financial Analysis As noted earlier , net position may serve over time as one useful indicator of a government's financial condition The assets and deferred outflows of resources of Johnston County's primary government exceeded its liabilities and deferred inflows of resources by 221,806 as of June 30 , 2021 The County's net position increased by 67,772,517 for the fiscal year ended June 30 , 2021 Net position is reported in three categories Net investment in capital assets of 211,856,366 , restricted net position of 79,962,630 , and unrestricted net position of 291,597,190 Johnston County's Net Position Figure 2 Governmental Business - type Activities Activities Total 2021 2020 2021 2020 2021 2020 Current and Other assists 272,107,219 157,146,629 107,341,891 91,657,667 379,449,110 248,804,296 Capital Assets 82,263,689 60,466,895 273,898,870 248,198,005 356,162,559 308,664,900 Total Assets 354,370,908 217,613,524 381,240,761 339,855,672 735,611,669 557,469,196 Total deferred outflows of resources 67,306,581 45,370,615 12,506,192 4,586,738 79,812,773 49,957,353 Long - term liabilities 501,812,137 423,370,615 155,066,226 139,756,363 656,878,363 563,126,978 Other liabilities 104,947,671 65,785,737 16,813,265 14,059,534 121,760,935 79,845,271 Total Liabilities 606,759,808 489,156,352 171,879,490 153,815,897 778,639,298 642,972,249 Total deferred inflows of resources 18,050,376 12,104,335 18,512,962 18,310,653 36,563,338 30,414,988 Net Position Net investment in capital assets 56,033,319 60,466,895 155,823,047 140,993,535 211,856,366 201,460,430 Restricted 78,031,958 45,323,960 1,930,672 1,114,682 79,962,630 46,438,642 Unrestricted 337,197,972 344,067,403 45,600,782 30,207,643 291,597,190 313,859,760 Total Net Position 203,132,695 238,276,548 203,354,501 172,315,860 221,806 65,960,688 The net investment in capital assets category is defined as the County's investment in County owned capital assets eg land , buildings , machinery , and equipment , less any related debt still outstanding that was issued to acquire those items Johnston County uses these capital assets to provide services to citizens ; consequently , these assets are not available for future spending Although Johnston County's net investment in capital assets is reported net of the outstanding related debt , the resources needed to repay that debt must be provided by other sources , since the capital assets cannot be used to liquidate these liabilities Another category of net position is restricted net position This represents resources that are subject to external restrictions on how they may be used The final category of net position is unrestricted net position This balance may be used to meet the government's ongoing obligations to citizens and creditors Unrestricted net position deficit totaled 291,597,190 at June 30 , 2021 This deficit is a result of the situation described in the following paragraph As with many counties in the State of North Carolina , the County's deficit in unrestricted net position is due primarily to the portion of the County's outstanding debt incurred for use by the Johnston County Board of Education to construct , renovate and equip schools Under North Carolina law , the County is responsible for providing capital funding for the schools The County has chosen to meet its obligation to provide the schools capital funding by using a mixture of County funds and general obligation debt The assets funded by the County , however , are owned and utilized by the schools Since the County , as the issuing government , acquires no capital assets , the County has incurred a liability without a corresponding increase in assets At the end of the fiscal year , approximately 288,186,163 of the outstanding debt on the County's financial statements was related to assets included in the public schools and community college financial statements 7Page7However , since the majority of this school related debt is general obligation debt , it is collateralized by the full faith , credit , and taxing power of the County Accordingly , the County is authorized and required by State law to levy ad valorem taxes , without limit as to rate and amount , as may be necessary to pay the debt service on its general obligation bonds The impact on unrestricted governmental net position of the inclusion of the school system debt without the corresponding assets was offset by the following positive factors Continued diligence in the collection of property taxes by maintaining a collection percentage of 9980 , resulted in a slight decrease ? from last year's collection rate of 9989 Increased charges for services revenue due to growth in the use of County facilities ? Continued low cost of debt due to the County's high bond rating ? Johnston Countys Changes in Net Position Figure 3 Governmental Business - type Activities Activities Total 2021 2020 2021 2020 2021 2020 Revenues Program revenues Charges for services 31,916,575 24,766,369 62,625,464 58,563,642 94,542,039 83,330,011 Operating grants and contributions 29,077,507 27,240,248 6,132,505 5,400,987 35,210,012 32,641,235 Capital grants and contributions 5,034,326 2,062,651 18,705,315 11,366,020 23,739,641 13,428,671 General revenues - - Property taxes 170,728,675 169,958,192 - - 170,728,675 169,958,192 Other taxes 60,920,609 52,045,488 - - 60,920,609 52,045,488 Grants and contributions not - - restricted to specific programs 1,897,375 1,939,597 - - 1,897,375 1,939,597 Other 629,075 1,689,314 1,512,428 3,025,845 2,141,503 4,715,159 Total revenues 300,204,142 279,701,859 88,975,712 78,356,494 389,179,854 358,058,353 Expenses Administrative - - 1,397,973 1,335,218 1,397,973 1,335,218 General government 29,548,885 22,368,822 - - 29,548,885 22,368,822 Public safety 59,069,149 65,716,398 - - 59,069,149 65,716,398 Economic and physical 9,046,576 9,830,449 - - 9,046,576 9,830,449 development - Human services 49,343,009 45,774,201 - - 49,343,009 45,774,201 Cultural and recreation 674,565 551,000 - - 674,565 551,000 Education 105,874,373 99,812,123 - - 105,874,373 99,812,123 Interest on long - term debt 9,504,223 9,162,068 - - 9,504,223 9,162,068 Solid Waste - - 9,566,679 7,360,532 9,566,679 7,360,532 Water Districts - - 14,419,466 14,329,070 14,419,466 14,329,070 Water - - 18,644,397 19,670,530 18,644,397 19,670,530 Wastewater - - 9,496,548 8,853,041 9,496,548 8,853,041 Housing Assistance - - 4,821,494 4,402,254 4,821,494 4,402,254 Total expenses 263,060,780 253,215,061 58,346,557 55,950,645 321,407,337 309,165,706 Increase decrease in net position before transfers and special items 37,143,362 26,486,798 30,629,155 22,405,849 67,772,517 48,892,647 Transfers 409,486 512,237 409,486 512,237 - - Increase Decrease in net position after transfers and special items 36,733,876 25,974,561 31,038,641 22,918,086 67,772,517 48,892,647 Net position , beginning , restated 239,866,571 264,251,109 172,315,860 149,397,774 67,550,711 114,853,335 Net position , ending 203,132,695 238,276,548 203,354,501 172,315,860 221,806 65,960,688 8Page8Governmental activities Governmental activities increased the County's net position by 36,733,876 Key elements of this change are as follows Total revenues increased 20,502,283 due to ? Increase in charge for services in the Inspections department primarily due to the continued growth of Johnston County Inspections performed 11,295 more inspections in FY 21 over the prior year that contributed , in part , to the overall increase ? Other taxes which includes local option sales tax and medicaid hold harmless receipts increased 8,875,121 ? Register of Deeds service related activities grew by 35 over the previous year This is also tied to the growth in Johnston County's economy This increase in activity accounted for the additional increase in charges for services Expenses also increased by 9,845,719 , mainly due to increased expenses in general government , human services , education , and interest , which was offset by decreases in public safety and economic and physical development ? Additional increases in expense related to COVID and costs incurred throughout the year for safety of staff and citizens Additional staffing needs at DSS , EMS and Communications ? ? The overall expense increase was due , in part , to the Board of County Commissioners continued commitment to education that saw an overall increase in this area of 6 million to Johnston County Schools and Johnston Community College The County has been able to maintain a high tax collection rate of 9980 Business - type activities Business - type activities increased Johnston County's net position by 31,038,641 Key elements of this increase are as follows Net position increased in the Solid Waste Fund 108,874 , in the Water Fund 3,358,097 , in the Wastewater Fund 13,589,862 , in the Water District Fund 13,463,599 , and the non - major proprietary funds of 518,209 The County received 11,109,417 in system development fees during the year which were set aside in capital reserve funds ? Revenues increased due to the growth of water and wastewater connections that Public Utilities provides for its citizens and in residential water sales The number of customers and service connections continue to grow from year to year Public Utilities ' periodically monitors the impact of their fee structure each year and its impact on the associated revenue bonds In response , fees are adjusted to maintain the required debt coverage and to maintain consistency with cost of living impact ? The increase in the net position of the business - type activities was also due to a decline in the operating expenses for wastewater This decrease was due to a reduction in the maintenance and repair and operating supplies over the prior year The landfill services provided by Solid Waste continue to positively impact the revenue generated Solid Waste continues to improve their financial position through increased collections on accounts and increased landfill activity Financial Analysis of the County's Funds As noted earlier , Johnston County uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements Governmental Funds The focus of Johnston County's governmental funds is to provide information on near - term inflows , outflows , and balances of usable resources Such information is useful in assessing Johnston County's financing requirements Specifically , fund balance available for appropriation can be a useful measure of a government's net resources available for spending at the end of the fiscal year The general fund is the chief operating fund of Johnston County At the end of the current fiscal year , Johnston Countys fund balance available in the General Fund was 129,951,222 while total fund balance reached 171,023,084 The governing body of Johnston County has determined that the county should maintain an available fund balance of 15 of general fund expenditures in case of unforeseen needs or opportunities , in addition to meeting the cash flow needs of the County The County currently has an available fund balance of 5290 of general fund expenditures , while total fund balance represents 6962 of that same amount The School Bond fund is used to account for bond proceeds and expenditures for school capital needs Fund balance increased by 12,858,885 as a result of new debt issued for school projects At June 30 , 2021 , the governmental funds of Johnston County reported a combined fund balance of 239,366,240 , a 5925 percent increase from last year The General Fund balance increased by 53,961,881 The increase in the Countys fund balance can be contributed to a few areas ? The tax collection percentage of the County continues to remain a strong point of its strengthening fund balance For 2021 , the County's Tax Collection Rate was 9980 ? The revenue from the receipt of sales tax increased 1400 The County's sales tax collections continue to increase since legislation expanded the sales tax base 9Page9? The County also saw a significant increase in the collection of ad valorem taxes over the prior year The County saw an increase of ad valorem taxes by approximately 9 million from FY 20 to FY 21 This is a 6 increase that was caused by County growth as well as the increased valuation of home prices in the County ? Most importantly , this increase can also be contributed to the financial policies which the Board has adopted The Board , as well as senior management , continue to monitor the County's activities and financial position for ways to improve not only the financial position of the County , but provide services in a more efficient manner The County also continuously monitors debt for opportunities to pay down or refinance for savings opportunities General Fund Budgetary Highlights During the fiscal year , the County revised the budget on several occasions Generally , budget amendments fall into one of three categories 1 amendments made to adjust the estimates that are used to prepare the original budget ordinance once exact information is available ; 2 amendments made to recognize new funding amounts from external sources , such as Federal and State grants ; and 3 increases in appropriations that become necessary to maintain services Total amendments to the General Fund increased revenues by 40,930,886 The main reasons for these increases were ? COVID and pandemic related funds received by the federal and state governments totaled more than 7 million that the County distributed in FY 21 ? Appropriations needed for Sheriff Department as we are in the beginning stages of designing and building a new detention center ? The County had needs throughout the year to repair and replace ambulances in its fleet Proprietary Funds The County of Johnston's proprietary funds provide the same type of information found in the government - wide statements , but in more detail Unrestricted net position of the Water Fund amounted to 4,482,403 , the Wastewater Treatment Fund amounted to 26,269,112 , the Water District Funds amounted to 33,220,026 , the Solid Waste Fund amount to 10,115,923 , and the non - major proprietary funds amounted to 709,970 The total increase in unrestricted net position amounted to 15,393,139 when compared to the prior year Other factors concerning the finances of these funds have already been addressed in the discussion of the County of Johnston's business - type activities Capital Asset and Debt Administration Capital assets Johnston County's capital assets for its governmental and business - type activities as of June 30 , 2021 , totals 356,162,559 net of accumulated depreciation These assets include buildings , land , machinery and equipment , park facilities , vehicles , and water lines Johnston County's Capital Assets Figure 4 Governmental Business - type Activities Activities Total 2021 2020 2021 2020 2021 2020 Land 4,752,453 3,109,864 8,313,637 8,313,637 13,066,090 11,423,501 Land Improvements - - - - - - Other Improvements 1,489,746 1,706,201 - - 1,489,746 1,706,201 Buildings Plant and distribution systems 42,550,272 44,235,143 185,170,714 182,019,850 227,720,986 226,254,993 Equipment 3,350,757 3,793,312 6,154,466 5,721,834 9,505,223 9,515,146 Vehicles 3,564,578 4,297,607 1,007,015 1,087,367 4,571,593 5,384,974 Software 214,260 283,577 - - 214,260 283,577 Intangibles - - 26,010,480 26,999,765 26,010,480 26,999,765 Construction in Progress 26,341,623 3,041,191 47,242,558 24,055,552 73,584,181 27,096,743 Total 82,263,689 60,466,895 2 73,898,870 2 48,198,005 3 56,162,559 3 08,664,900 Major capital asset transactions during the year include Water and Wastewater Improvements ? Sheriff Department Vehicles ? Emergency Services Equipment ? Additional information on the County's capital assets can be found in notes to the Financial Statements pages 41 - 49 10Page0Long - term Debt As of June 30 , 2021 , Johnston County had total bonded debt outstanding of 274,570,000 , all of which is debt backed by the full faith and credit of the County or the Countys water districts Johnston County's Outstanding Debt Figure 5 Governmental Business - type Activities Activities Total 2021 2020 2021 2020 2021 2020 General obligation bonds 227,475,000 214,200,000 47,095,000 43,080,000 2 74,570,000 2 57,280,000 Limited obligation bonds 71,850,000 43,165,000 80,235,000 55,990,000 152,085,000 99,155,000 Unamortized bond premium 32,175,535 22,616,249 3,516,649 3,105,610 35,692,184 25,721,859 Clean water revolving loans - - 34,296,639 39,980,376 34,296,639 39,980,376 Installment purchase loans - - 10,855,000 10,030,053 10,855,000 10,030,053 Revenue Bonds - - - 5,983,398 - 5,983,398 Other Notes Payables - - 27,534 30,035 27,534 30,035 Total 331,500,535 279,981,249 1 76,025,822 1 58,199,472 5 07,526,357 4 38,180,721 Johnston County's total debt increased by 69,345,636 during the past fiscal year , primarily due to the repayment of debt service , offset by the issuance of state revolving loans to finance the construction of the water and sewer distribution systems , the issuance of school bonds , and the issuance of bonds for detention center construction As mentioned in the financial highlights section of this document , Johnston County maintained its Aa1 from Moodys Investor Services , and maintained their rating of AA + from Standard and Poor's Corporation This bond rating is a clear indication of the sound financial condition of Johnston County This achievement is a primary factor in keeping interest costs low on the County's outstanding debt The State of North Carolina limits the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government's boundaries The legal debt margin for Johnston County is 1,474,097,463 The County has 24,225,000 in General Obligation refunding bonds authorized but un - issued at June 30 , 2021 Additional information regarding Johnston County's long - term debt can be found in the notes to the financial statements pages 64 - 77 Economic Factors and Next Year's Budgets and Rates According to the 2020 US Census Bureau , the County is the fastest growing county in the State Many factors contribute to growth in the County's population and economy The County's overall economy is diversified with a balance of industrial , commercial , and agriculture enterprises The production of pharmaceutical products , heavy equipment , and other products , along with durable goods assembly operations and distribution centers have provided relatively stable employment to County residents and have been the object of significant capital expenditures over the years The County's estimated average labor force for the calendar year 2020 was 100,706 and for calendar year 2020 was 98,297 The County's estimated average unemployment rate for calendar year 2020 was 63 , as compared to the State's estimated average unemployment rate of 73 for the same period Due to the national COVID - 19 pandemic , the County's estimated unemployment rate rose to a high of 116 in May 2020 , compared to the State's estimated unemployment rate of 137 for the same period The County's estimated unemployment rate for June 2021 was 44 , as compared to the State's estimated unemployment rate for the same period of 49 The western portion of the County has directly benefited from its proximity to 1 the Research Triangle Park , with over 6,900 acres of land set aside for research and research - oriented manufacturing activities , which includes more than 250 research and development facilities employing over 55,000 persons ; 2 regional employers in and around the City of Raleigh , the State's capitol and a major urban center , which include private sector opportunities with Fortune 500 companies , federal and State government positions and expanding medical service careers ; and 3 numerous institutions of higher education including North Carolina State University in the City of Raleigh , The University of North Carolina in the Town of Chapel Hill , Duke University and North Carolina Central University in the City of Durham and East Carolina University in the City of Greenville 11Page1The County's employment base includes approximately 10 of all biopharmaceutical jobs in the State The area southeast of the Town of Clayton is home to two large international pharmaceutical companies , as well as a special purpose Research and Training Zone " RTZ " , which is an economic development and training district created through special legislation that supports the special needs of the local pharmaceutical industries The RTZ includes a 30,000 square - foot workforce development center , an educational and technical skills training center that ensures the pharmaceutical employee base is updated with state - of - the - art techniques and procedures In September 2018 , a 13 million renovation of the center was completed The renovation allows more hands - on lab training and simulation opportunities and will improve how skilled employees are trained for regional bio - manufacturing industries The County and four neighboring counties including Edgecombe , Nash , Pitt and Wilson , being home to major global biopharmaceutical manufacturing facilities , formed the BioPharma Crescent consortium to help companies locate or expand operations within close proximity to the Research Triangle Park BioPharma Crescent partners , including the NC Biotechnology Center , understand the unique land use and utility requirement for biotech manufacturing , are active in workforce development programs , and participate in incentive grants for new and expanding companies The BioPharma Crescent consortium's collective colleges , universities , and biopharma - specific training network can provide local businesses with a highly - educated and well - trained network The largest manufacturing employer in the County currently is Grifols Therapeutics Inc " Grifols " , an international manufacturer of blood plasma related products for a variety of applications , employing approximately 1,735 The blood plasma facility has been in operation since 1981 and is the primary Grifols manufacturing facility In November 2017 , Grifols received recognition as one of the 500 best companies to work for by Forbes Magazine Grifols ' facilities and operations at its complex near Clayton include a 155,000 square - foot , 370 million North Fractionation Facility " NFF " that opened in 2014 , created an additional 200 jobs , and is the world's largest , as well as one of the most technologically advanced plasma fractionation facilities The NFF was named the 2014 Facility of the Year for Project Execution by the International Society for Pharmaceutical Engineering Grifols also completed construction in recent years of a new approximately 225 million , three - story , 100,000 square - foot office building that houses 400 employees , as well as a new approximately 75 million , 59,000 square - foot warehouse In addition , a 210 million expansion announced in 2016 includes a 90 million , 82,550 square - foot fractionation plant currently under construction adjacent to the NFF and a 120 million , 150,000 square - foot purification and filling facility for the production of intravenous immunoglobulin and factor VIII products The fractionation plant is scheduled to be operational later in 2021 and the purification and filling facility is scheduled to be operational in 2022 Grifols anticipates the two facilities together will create approximately 250 new jobs In December 2017 , Grifols purchased an additional 467 acres adjacent to its site near Clayton for future site expansion In June 2020 , Grifols announced it will invest approximately 3516 million to build a specialized blood plasma fractionation facility and logistics center at its campus near Clayton in response to growing global demand for its medicines The expansion is expected to create approximately 300 additional jobs from 2024 to 2028 with an average salary of 69,032 Novo Nordisk Pharmaceutical Industries " Novo Nordisk " , the world's largest supplier of insulin products , opened its facility in the Clayton area in 1993 , and currently employs over 1,200 people at its Diabetes Finished Products " DFP " manufacturing facility The DFP facility is responsible for the formulation , filling , inspection , assembly and packaging of diabetes and obesity medicines , which are marketed in North America , Europe , New Zealand and Australia Novo Nordisk has expanded its operation in the Clayton area several times over the years An approximately 102 million expansion was completed in recent years which created approximately 110 new jobs Novo Nordisk recently completed construction of a new approximately 2 billion , 825,000 square - foot bio - processing facility for Diabetes Active Pharmaceutical Ingredients " DAPI " adjacent to its current site in the Clayton area Up to 2,500 workers have been employed during construction and the new facility is now operational The new facility is anticipated to create approximately 690 jobs with an average annual salary of approximately 68,420 The new positions will span manufacturing , administrative , technical services and support personnel The DAPI facility is one of only two in the world for Novo Nordisk the first outside of Denmark and will ensure production capacity for diabetes care products in the US for the decade ahead In February 2018 , Novo Nordisk announced plans for a 65 million expansion of the existing DFP facility in the County , which is expected to result in the creation of approximately 25 jobs Another 22 million expansion for the DFP facility was announced in December 2018 that is expected to create approximately 22 jobs This was the fourth expansion announcement since 2010 Novo Nordisk was recently recognized as one of the State's top exporters and was presented the 2020 Governor's Export Award in February 2021 by the Economic Development Partnership of NC , sharing honors for Top Large Business Export with specialty textile manufacturer Glen Raven Another large manufacturing employer in the County is the Building and Construction Products Division of Caterpillar Inc " CAT " , a Fortune 100 company , located near the Town of Clayton The facility currently assembles and distributes all CAT rubber tire front - end loaders for North America and the export market CAT completed construction of a Machine Development Center on 252 acres adjacent to its Clayton assembly facility in July , 2013 The approximately 55,000 square - foot facility is where prototype machines are designed , tested and subjected to customers ' hands - on operation and critique At a state - of - the - art heavy equipment test track located at the center , engineers can get hands - on experience testing out new equipment , with a focus on design elements that can be incorporated into new Caterpillar machines In February 2021 , CAT announced plans to add a visitor demonstration center , in - house testing area and storage shelter to its assembly plant near Clayton CAT employs approximately 599 people at its Clayton facilities 12Page2The area near the Town of Clayton is also home to new , growing companies , such as Blue Pack Marketing " BPM " BPM , founded in 2014 , specializes in brand development , supply chain logistics and digital marketing and employs approximately 30 people The company placed 1,188th on the Inc 5000 rankings list for 2020 and is one of the fastest growing technology - based companies in the region Further east in the County along the Interstate Highway 95 " I - 95 " corridor , several economic development expansions have been announced or have taken place in recent years Economic development expansions underway , completed or announced in FY 21 include the following An approximately 92 million Hampton Inn opened in the Fall of 2017 near I - 95 in the Town of Benson The hotel includes 89 • rooms and a lower - level conference space and employs approximately 25 people The site also includes a 23 acre outparcel for a 4,000 square - foot quick - service restaurant and a 6,000 square - foot full - service restaurant A Hampton Inn of similar size and investment recently opened in the Town of Smithfield Sysco Corporation , a food service distributor with an operation in the Town of Selma , added a 147,000 square - foot addition to its • facility for dry storage at an approximate cost of 27 million In January 2019 , Blue Line Aviation LLC announced plans to build a state - of - the - art aviation facility and headquarters at Johnston • Regional Airport , to include a hangar and flight school for both private and commercial aviation The 13 million project is expected to bring more than 50 new jobs during its first year Construction is underway and the facility will include 22,000 square feet of space for Blue Line's Professional Pilot Training Center , offices and restaurant space , 20,000 square feet of hangar space , an observation area , a playground , a roof - top restaurant and a full motion flight simulator Plans were unveiled in February 2019 for Eastfield , an approximately 2875 million master - planned , mixed - use 353 - acre • development , to be located on the east side of the intersection of I - 95 and US Highway 70 future Interstate 42 in the Smithfield - Selma area AdVenture Development , LLC , a full - service real estate company with offices in the Town of Selma as well as the City of Pittsburgh , plans to construct Eastfield in two phases The first phase is one million square - feet of warehouse and flex - space for industrial and office tenants The anticipated cost of phase one is approximately 40 million This new industrial space is part of a much larger plan for the remainder of the development to include medical office facilit