Document alpinecountyca_gov_doc_2c1f522378

COUNTY OF ALPINE, CALIFORNIA ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2018 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Independent Auditor’s 1-3 Management’s Discussion and Analysis (Required Supplementary Information) 4-17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net 18 Statement of 19 Fund Financial Statements: Governmental Funds: Balance 20 Reconciliation of the Balance Sheet to the Statement of Net Position 21 Statement of Revenues, Expenditures and Changes in Fund 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of 23 Proprietary Funds: Statement of Net Position 24 Statement of Revenues, Expenses and Changes in Net 25 Statement of Cash 26 Fiduciary Funds: Statement of Fiduciary Net 27 Statement of Changes in Fiduciary Net 28 Notes to the Basic Financial 29-62 Required Supplementary Information: County OBEB Plan - Schedule of Changes in Net OPEB Liability and Related Ratios 63 County Pension Plan – Schedule of Proportionate Share of the Net Pension 64 County Pension Plan – Schedule of 64 Budgetary Comparison Schedules: General 65-67 Road 68-69 Mental Health Services 70 Realignment Fund 71 Mental Health Fund 72 Note to Required Supplementary 73 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Combining Balance 74 Combining Statement of Revenues, Expenditures and Changes in Fund 75 Nonmajor Special Revenue Funds: Combining Balance 76-86 Combining Statement of Revenues, Expenditures and Changes in Fund 87-97 Nonmajor Capital Projects Funds: Combining Balance 98-99 Combining Statement of Revenues, Expenditures and Changes in Fund 100-101 ---PAGE BREAK--- 1 INDEPENDENT AUDITOR’S REPORT To the Board of Supervisors of the County of Alpine Markleeville, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County of Alpine, California (the “County”), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s 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. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Alpine County Children and Families Commission (the Commission), the discretely presented component unit, which represents 100 percent of the assets, net position, and revenues of the discretely presented component unit. 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 Commission, 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. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s 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 County’s 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 County’s internal ---PAGE BREAK--- 2 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. Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County of Alpine, California, as of June 30, 2018, and the respective changes in financial position and, where applicable, cash flows thereof 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 management’s discussion and analysis on pages 4-17, County OPEB Plan Schedule of Changes in Net OPEB Liability and Related Ratios on page 63, County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability and County Pension Plan - Schedule of Contributions on page 64, and Budgetary Comparison Schedules on pages 65-72, 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 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 management’s 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining nonmajor fund financial statements are the responsibility of management and were derived from and relate 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 nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Emphasis of Matter Implementation of New Accounting Standard As disclosed in Note 9 of the financial statements, the County implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. Our opinion is not modified with respect to this matter. ---PAGE BREAK--- 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2019, on our consideration of the County of Alpine, California’s 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 that 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’s internal control over financial reporting and compliance. Clovis, California March 29, 2019 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 4 As management of the County of Alpine (County), we offer readers of the County’s financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended June 30, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the County’s financial statements, which immediately follow this section. Financial Highlights x The assets and deferred outflows of resources of the County exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $28,617,436 (net position). Unrestricted net position which normally is discretionary and available to meet ongoing obligations to citizens and creditors was deficit by $11,737,284. $24,753,133 is restricted and must be used only for specific purposes and $15,601,587 is invested in capital assets, net of related debt. x As of June 30, 2018, the County’s governmental funds reported combined fund balances of $33,664,084, an increase of $2,376,403 because current year revenues exceeded current year expenditures. x Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 93.67% of ending fund balance. Of this amount, $24,043,775 is restricted by law or externally imposed requirements, $1,236,507 is committed for specific purposes and $3,633,629 is assigned for specific purposes based on the intent of the Board of Supervisors, including $1,000,000 set aside as the County’s general reserve for emergencies. x At the end of the current fiscal year, unassigned fund balance for the General Fund was $2,885,230, or 33.26% of total General Fund expenditures, is available for spending towards operations in subsequent years. x The County’s capital asset balances increased by $340,228 or 2.10% over the prior fiscal year. The increase results from new purchases of $1,274,333 and construction additions of $855,716 offset by $597,794 in construction projects that were completed and depreciation of $1,192,027. x The County’s long-term liabilities increased by $11,563,741 or 82.29% during the current fiscal year. Increases of $1,528,728 in net pension liability, $10,084,944 in other post-employment benefits (OPEB) liability and $51,938 in compensated absences were offset by a decrease of $75,327 in the capital lease and a decrease of $26,542 in the claims liability. The large increase in OPEB was due to the implementation of GASB Statement No. 75. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 5 Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. The County’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other required supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private-sector business. These statements provide both long- term and short-term information about the County’s overall financial status. The Statement of Net Position presents information on all of the County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The Statement of Activities presents information showing how the County’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public protection, public ways and facilities, health and sanitation, public assistance, education and recreation and cultural services. The business-type activities of the County include Alpine County Transit. The government-wide financial statements include the following blended component units: County Service Area #1 and Alpine Transportation Commission. These component units are included in the County’s reporting entity because of the significance of their financial or operational relationship and their mutual governing body. The Alpine County Children and Families Commission is included as a discretely presented component unit. The Commission is considered a component unit of the County because the County’s Board of Supervisors appoints commission members and commission members serve at the pleasure of the County’s Board. However, because the County Board of Supervisors and the Commission’s Board are not substantially the same, the Commission was discretely presented in the County’s government-wide financial statements. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 6 Fund Financial Statements 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. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on how cash and other financial assets can readily be converted to available resources and the balances left at year-end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the County’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains several individual governmental funds organized according to their type (special revenue, permanent, debt service and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the Road Fund, the Mental Health Services Act Fund, the Realignment Fund, and Mental Health Fund all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The County adopts an annual appropriated budget for its General Fund, special revenue, permanent, debt service and capital projects funds. A budgetary comparison schedule has been provided for the General Fund and each major special revenue fund to demonstrate compliance with the budget. Proprietary Funds The County maintains one of two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses an enterprise fund to account for Alpine County Transit. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 7 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary 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. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County’s progress in funding its OPEB obligation, information about the County’s proportionate share of the net pension liability and pension contributions, and also the budgetary comparison schedules for the General Fund and each major special revenue fund. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary of Net Position As of June 30, 2018 and 2017 (in thousands) As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets and deferred outflows exceeded liabilities and deferred inflows by $28.6 million at the close of the most recent fiscal year, decreasing $7.9 million, or 21.6% during the year. The largest portion of the County’s net position is restricted net position representing resources that are subject to external restrictions on how they may be used. During the fiscal year, restricted net position increased $1.98 million, or 8.7%. All of the increase is the accumulation of resources in the Realignment funds. The next largest portion of the County’s net position is its net investment in capital assets land, infrastructure, buildings and improvements and machinery and equipment), less any related outstanding debt used to acquire those assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Unrestricted net position decreased by $10.3 million primarily because of a $10.1 million restatement of fund balance due to the implementation of GASB Statement No. 75. At the end of the current fiscal year, the County reported positive balances in two of the three categories of net position. The County’s sole business-type activity ended the year in a negative net position due to transit expenses exceeding program revenues. Governmental Activities Business-Type Activities Total 2018 2017 2018 2017 2018 2017 Assets: Current and other assets $ 35,462 $ 33,111 $ 85 $ 99 $ 35,547 $ 33,210 Capital assets, net 16,474 16,132 57 59 16,531 16,191 Total assets 51,936 49,243 142 158 52,078 49,401 Deferred Outflows 4,188 2,871 20 13 4,208 2,884 Liabilities: Current and other liabilities 950 1,037 97 122 1,047 1,159 Long-term liabilities 25,554 14,007 63 46 25,617 14,053 Total liabilities 26,504 15,044 160 168 26,664 15,212 Deferred Inflows 1,000 584 4 4 1,004 588 Net Position: Net Investment in capital assets 15,544 15,127 57 59 15,601 15,186 Restricted net position 24,753 22,773 - - 24,753 22,773 Unrestricted net position (11,678) (1,414) (59) (60) (11,737) (1,474) Total net position $ 28,619 $ 36,486 $ $ $ 28,617 $ 36,485 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 9 The following table shows the changes in net position for governmental and business-type activities. Changes in Net Position YearV ended June 30, 201 and 201 (in thousands) Governmental Activities Business-Type Activities Total 2018 2017 2018 2017 2018 2017 Revenues: Program revenues: Charges for services $ 1,923 $ 1,913 $ 6 $ 6 $ 1,929 $ 1,919 Operating grants and contributions 9,570 9,197 106 77 9,676 9,274 Capital grants and contributions - - - - - - General revenues: - - Property taxes 5,471 5,229 - - 5,471 5,229 Sales taxes 395 496 - - 395 496 Other taxes 751 743 - - 751 743 Unrestricted investment earnings 336 157 - - 336 157 Non-program grant revenues 222 219 - - 222 219 Total revenues 18,668 17,954 112 83 18,780 18,037 Expenses: General government 3,548 3,537 - - 3,548 3,537 Public protection 5,694 5,443 - - 5,694 5,443 Public ways and facilities 1,669 2,035 - - 1,669 2,035 Health and sanitation 3,444 3,193 - - 3,444 3,193 Public assistance 1,644 1,672 - - 1,644 1,672 Education 364 324 - - 364 324 Recreation 87 80 - - 87 80 Interest on long-term debt 37 40 - - 37 40 Alpine County Transit - - 113 100 113 100 Total expenses 16,487 16,324 113 100 16,600 16,424 Change in net position 2,181 1,630 (17) 2,180 1,613 Net position at beginning of year 36,486 34,856 16 36,485 34,872 Restatements (10,049) - - - (10,049) - Net position at end of the year $ 28,618 $ 36,486 $ $ $ 28,616 $ 36,485 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 10 Expenses and Program Revenues – Governmental Activities Year ended June 30, 2018 (in thousands) 0 1000 2000 3000 4000 5000 6000 Program Revenues Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 11 Revenues by Source – Governmental Activities Year ended June 30, 2018 Analysis of Revenues The County’s revenues increased by $742,199 or 4.11%. Significant changes from last fiscal year are summarized below: x Minor decreases in many charges for services resulted in a combined decrease of approximately $130,510 over the prior year. x SNC Prop 1 state grant funding increased $138,826 from prior year. x Interest earnings increased by $179,327 over the prior year. x Realignment funding increased by $133,049 over the prior year. x Community Correction Performance state grant funding under SB678 decreased $191,028 over prior year. x Federal funds used for health services increased $327,634 from the prior year. This increase was due to a $197,521 increase in drug & alcohol grant funding and a $130,113 increase in FFP benefit services funding over prior year. x Federal funds used for law enforcement/emergency services increased $146,084. This increase was due to a $146,084 increase in the OES/FEMA contribution from prior year. x The County participates in numerous grant programs, funding of which varies from year to year. It is the policy of the County to use non-recurring grant funds to pay for one-time project costs. The level of funding varies from year to year depending on the availability of funding and the specific projects the County considers necessary in any particular year. Charges for services 10.30% Operating grants and contributions 51.26% Capital grants and contributions 0.00% Property taxes 29.31% Sales taxes 2.12% Other taxes 4.02% Unrestricted investment earnings 1.80% Non-program grant revenues 1.19% Revenues ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 12 Tax revenues (property, sales, transient occupancy and other taxes) increased $149,962 over prior year. This increase is due to $242,109 increase in property tax in the current year. The General Fund’s property tax receivable fell by about 3.84% from $334,872 at June 30, 2017 to $321,997 at June 30, 2018. Expenses by Function/Program Year ended June 30, 2018 Analysis of Expenses The County’s expenses increased by $174,784, or 1.06%. Significant changes from last fiscal year are summarized below: x Salary costs increased $160,108. This increase is due to an increase in health services positions, as well as step and COLA increases. x Overtime costs were $21,497 less than the prior year. x Certain employee benefits including health insurance and retirement contributions were $129,570 more due to filling vacancies, increased medical premiums and higher retirement contribution rates. x Snow removal services decreased $246,624 from the prior year. x Miscellaneous professional services were $11,878 less than the prior year. x OPEB costs were $270,668 more than the prior year. x Pension expense was $953,922 more than the prior year. General government 21.52% Public protection 34.54% Public ways and facilities 10.12% Health and sanitation 20.89% Public assistance 9.97% Education 2.21% Recreation 0.53% Interest on long- term debt 0.22% Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 13 Business-type activities The County operates only one business-type activity, the Alpine County Transit Service. Transit closed the year with a negative net position. This is mostly attributable to the non-recognition of an additional $96,166 in grants received but not yet earned. These transit revenues are reduced and reclassified as a liability on the Statement of Net Position as unearned revenue. Operating revenues for the year was about the same as last year while expenses were $12,483 more, mostly attributable to increased salaries and benefits. Governmental Funds As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. At June 30, 2018, the County’s governmental funds reported combined ending fund balances of $33,664,084, an increase of $2,376,403 in comparison with the prior year. The components of fund balance are as follows, and with the exception of nonspendable fund balance, are available for appropriation at any time: x Nonspendable fund balance, $2,203,876, consists of amounts that are not spendable in form or are legally or contractually required to remain intact. The largest component is the deposit of $1,484,973 held by Trindel, the County’s insurance claims processor. Nonspendable fund balance also includes $473,691 representing the corpus portion of the County’s one permanent fund. x Restricted fund balance, $24,043,775, consists of amounts with constraints externally imposed by creditors, grantors, laws, regulations and enabling legislation. While these amount are available for appropriation at any time, the nature of the expenditures are constrained by external providers. Significant components of this balance include: o Mental Health Services Act - $6,153,741 o Realignment funding - $10,636,924 o Restricted to road maintenance and improvement - $1,285,712 o Community Corrections Performance Incentives - $1,200,512 o County Service Area No. 1 - $737,562 o AB443 Enhancing Law Enforcement Activities - $765,739 x Committed fund balance, $1,236,507, consists of amounts that have been committed to specific purposes by the Board of Supervisors and consists of amounts set aside for future capital related projects. This balance consists mostly of STPUD Mitigation funding which the Board of Supervisors by resolution has set aside for capital related improvements. x Assigned fund balance, $3,633,629, represents amounts intended for use as determined by the Board of Supervisors and also represents the residual balance in governmental funds other than ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 14 the General Fund. Assigned fund balances primarily consists of $1,335,054 anticipated for funding next fiscal year’s General Fund shortfall in revenues, $1,000,000 set aside as a general reserve to provide funding in case of emergencies, $522,131 set aside for unfunded other postemployment liabilities, $367,145 intended to pay the County’s MOU with the Courts and also any future facility improvements to the Courthouse building and $216,093 set aside for capital replacement and on- going capital projects. x Unassigned fund balance, $2,546,297 represents the residual classification for the General Fund netted against deficit balances in other governmental funds. General Fund The General Fund is the primary operating fund of the County which accounts for core functions that include: administration, finance, assessor, clerk, district attorney, probation and sheriff. Approximately 81%, or $6,534,089, of the General Fund’s fund balance is available to meet the County’s current and future needs. With the approval of the Board of Supervisors, County management can earmark a portion of fund balance to a particular function, project or activity, and can also earmark it for purposes beyond the current year, within the constraints applied to the various categories of fund balance. With the exception of the nonspendable portion, fund balances are available for appropriation at any time. During the year, unassigned fund balance in the General Fund increased by $210,990, or 8% over last year’s balance. As a measure of the General Fund’s liquidity, it is useful to compare both total fund balance and spendable fund balance to total General Fund expenditures. Total fund balance is approximately 93% of total General Fund expenditures and spendable fund balance is approximately 75%. Both measures are more favorable when compared to the prior year (81% and 67%, respectively for the prior year). This generally is because total expenditures increased only $10,111 over the prior year while total fund balance increased $539,310 and spendable fund balance increased $314,637. Below is a chart showing General Fund surplus (deficit) for the past five years. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 15 Other Governmental Funds The Road Fund completed the year with an increase in fund balance of $13,576. Needed maintenance projects have been delayed so as to minimize operating deficits resulting from lower revenues caused by falling gas prices and more fuel efficient cars. This status quo strategy will continue as long as necessary until a much needed legislative fix from the State is enacted. The Mental Health Services Act fund experienced a decrease in fund balance of $171,036. This fund is funded with revenues generated from the passage of Proposition 63. The resources are used to support County mental health programs. Although funding allocations received from the State increased this year, some components of this fund’s activities which were delayed in previous years were incurred in the current year. The capital facility component included in the County’s MHSA three-year plan is set aside to finance a new Behavior Health facility, for which construction preparations began in the current year. . The Realignment Fund realized an increase in fund balance of $1,852,169. Realignment revenues are used to pay for operational funding gaps in programs that include behavioral health, public health, social services and post release community supervision, net of the funding from other dedicated sources. The Mental Health Fund experienced a decrease in fund balance of $262,051. Mental Health revenues are used to support County mental health programs. $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Surplus (Deficit) ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 16 As compared with the prior year, the total fund balances of the remaining governmental funds increased or $404,435. A majority of the increase is the drug and alcohol fund, which increased $239,798 and the tobacco fund, which increased $265,461 due to an increase in intergovernmental revenues. GOVERNMENTAL FUND BUDGETARY HIGHLIGHTS The General Fund budgetary comparison schedule is included in the Required Supplementary Information section of this report. The final budget differs from the originally adopted budget because of supplemental appropriations approved during the fiscal year. Total budgeted revenues decreased $27,700, or 0.1% from the original budget adopted in September 2017. Most of the decrease resulted from decreased transfers in. Total appropriations increased by $137,560, or 1.0%, and this increase was the result of an increase in General Contributions. Actual revenues were less than the amount budgeted by $1,543,109, or 8.0%. This entire shortfall is due to $1,749,639 worth of transfers in not received. This resulted from a delay in expenditures expected to be spent in the current year thereby also delaying the transfer in of restricted moneys that reimburse the operating funds for its share of expenditures. Actual expenditures were less than budgeted appropriations by $3,402,610, or 25.6% of final budgeted appropriations. Differences between the final budget and actual amounts are mostly the result of cost savings but also include delays experienced when scheduled projects funded by the general fund did not occur as anticipated. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2018 totaled $16.5 million. Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads and bridges. The total net increase (including the effect of depreciation) in the County’s capital assets for the current fiscal year was $340,228. Major capital asset additions during the current fiscal year included: x Infrastructure - $180,780 x Vehicles and equipment - $732,983 x Structures and improvements - $360,570 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2018 17 Debt Administration At the end of the current fiscal year, the County had total long-term liabilities outstanding of $25,616,696, an increase of $11,563,741 from the prior year. The restatement of OPEB from implementation of GASB Statement No. 75 was $10,049,091 and is included in the changes in OPEB in the table below. A comparison of each type of liability and its balance, after restatement, from last year to this year, along with a reason for the change is as follows: Additional information on the County’s long-term liabilities is in Note 5 to the basic financial statements. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Alpine County Finance Department at P.O. Box 266, Markleeville, California 96120. 2018 2017 Changes Capital leases payable $ 929,336 $ 1,004,663 $ (75,327) scheduled payment Other postemployment benefits 11,600,165 1,515,221 10,084,944 pay-as-you go funded Net pension liability 11,786,883 10,258,155 1,528,728 contributions and other adjustments Compensated absences 573,239 521,301 51,938 net paid absences Liability for claims cost 727,073 753,615 (26,542) decreased anticipated claims $ 25,616,696 $ 14,052,955 $ 11,563,741 ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS ---PAGE BREAK--- See accompanying notes to the basic financial statements. 18 COUNTY OF ALPINE Discrete Statement of Net Position Component Unit June 30, 2018 Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 31,921,869 $ 2,246 $ 31,924,115 $ 225,831 $ Accounts receivable 77,789 12 77,801 - Taxes receivable 372,254 - 372,254 - Due from other governments 1,327,245 46,604 1,373,849 69,158 Interest receivable 131,757 49 131,806 - Prepaid expense 21,204 - 21,204 4,658 Deposits 1,484,973 - 1,484,973 - Inventories 161,208 - 161,208 - Interfund balances (36,382) 36,382 - - Capital assets: Nondepreciable 2,482,116 - 2,482,116 - Depreciable, net 13,991,794 57,013 14,048,807 - Total Assets 51,935,827 142,306 52,078,133 299,647 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 3,621,747 19,585 3,641,332 - OPEB adjustments 566,258 - 566,258 - Total Deferred Outflows of Resources 4,188,005 19,585 4,207,590 - LIABILITIES Accounts payable 543,853 192 544,045 480 Accrued salaries and benefits 233,849 1,115 234,964 - Accrued interest payable 2,904 - 2,904 - Due to other government 144,471 - 144,471 - Unearned revenue 25,045 96,166 121,211 - Long-term liabilities: Due within one year: Compensated absences 286,620 - 286,620 1,052 Capital leases 78,179 - 78,179 - Estimated liability for claims costs 727,073 - 727,073 - Due after one year: Compensated absences 286,619 - 286,619 - Capital leases 851,157 - 851,157 - Other post-employment benefits 11,600,165 - 11,600,165 - Net pension liability 11,724,223 62,660 11,786,883 - Total Liabilities 26,504,158 160,133 26,664,291 1,532 DEFERRED INFLOWS OF RESOURCES Pension adjustments 431,833 3,586 435,419 - OPEB adjustments 568,577 - 568,577 - Total Deferred Inflows of Resources 1,000,410 3,586 1,003,996 - NET POSITION Net investment in capital assets 15,544,574 57,013 15,601,587 - Restricted, including nonexpendable amounts of $473,691 24,753,133 - 24,753,133 298,115 Unrestricted (11,678,443) (58,841) (11,737,284) - Total Net Position 28,619,264 $ (1,828) $ 28,617,436 $ 298,115 $ ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2018 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: General government 3,548,089 $ 899,749 $ - $ - $ Public protection 5,694,325 877,425 2,282,818 - Public ways and facilities 1,668,976 (45,833) 1,595,502 - Health and sanitation 3,444,146 157,575 3,773,984 - Public assistance 1,643,518 33,475 1,918,123 - Education 363,999 637 - - Recreation and culture 86,970 - - - Interest on long-term debt 36,733 - - - Total Governmental Activities 16,486,756 1,923,028 9,570,427 - Business-Type Activities Alpine Transit Service 112,484 5,370 105,942 - Total Primary Government 16,599,240 $ 1,928,398 $ 9,676,369 $ - $ Component Unit: Alpine County Children and and Families Commission 269,014 $ - $ 275,003 $ - $ GENERAL REVENUES AND TRANSFERS Taxes: Property taxes Sales and use taxes Transient occupancy taxes Other taxes Grants and other governmental revenues not restricted to specific programs Unrestricted investment earnings Total General Revenues CHANGES IN NET POSITION Net Position, Beginning of Year (Restated) NET POSITION, END OF YEAR See the accompanying notes to the basic financial statements. 19 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Discrete Primary Government Component Unit Alpine County Business- Children Governmental Type and Families Activities Activities Total Commission FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: (2,648,340) $ - $ (2,648,340) $ General government (2,534,082) - (2,534,082) Public protection (119,307) - (119,307) Public ways and facilities 487,413 - 487,413 Health and sanitation 308,080 - 308,080 Public assistance (363,362) - (363,362) Education (86,970) - (86,970) Recreation and culture (36,733) - (36,733) Interest on long-term debt (4,993,301) - (4,993,301) Total Governmental Activities Business-Type Activities - (1,172) (1,172) Alpine Transit Service (4,993,301) (1,172) (4,994,473) Total Primary Government Component Unit: Alpine County Children and 5,989 $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 5,470,858 - 5,470,858 - Property taxes 395,214 - 395,214 - Sales and use taxes 698,202 - 698,202 - Transient occupancy taxes 53,095 - 53,095 - Other taxes Grants and other governmental revenues 221,628 - 221,628 - not restricted to specific programs 336,144 311 336,455 2,945 Unrestricted investment earnings 7,175,141 311 7,175,452 2,945 Total General Revenues 2,181,840 (861) 2,180,979 8,934 CHANGES IN NET POSITION 26,437,424 (967) 26,436,457 289,181 Net Position, Beginning of Year (Restated) 28,619,264 $ (1,828) $ 28,617,436 $ 298,115 $ NET POSITION, END OF YEAR ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2018 Mental General Road Health Realignment Fund Fund Services Act Fund ASSETS Cash and investments 6,870,525 $ 1,254,499 $ 5,845,704 $ 10,359,224 $ Accounts receivable 22,017 4,186 - - Taxes receivable 347,296 - - - Due from other governments 264,069 57,974 169,555 372,117 Interest receivable 28,679 4,959 24,225 41,421 Prepaid expenses 12,234 3,394 1,603 - Deposits 1,484,973 - - - Inventories - 161,208 - - Due from other funds 21,065 20,027 194,857 19,329 Advance to other funds 60,000 - - - Total Assets 9,110,858 $ 1,506,247 $ 6,235,944 $ 10,792,091 $ LIABILITIES Accounts payable 280,073 $ 13,271 $ 53,716 $ 49 $ Accrued salaries and benefits 147,927 12,343 26,884 2,294 Due to other government 144,471 - - - Due to other funds 16,708 - - 99,724 Advance from other funds - 30,000 - - Unearned revenues 2,892 319 - - Total Liabilities 592,071 55,933 80,600 102,067 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 427,491 - - 53,100 FUND BALANCES Nonspendable 1,557,207 164,602 1,603 - Restricted 286,542 1,285,712 6,153,741 10,636,924 Committed - - - - Assigned 3,362,317 - - - Unassigned 2,885,230 - - - Total Fund Balances 8,091,296 1,450,314 6,155,344 10,636,924 Total Liabilities, Deferred Inflows of Resources and Fund Balances 9,110,858 $ 1,506,247 $ 6,235,944 $ 10,792,091 $ See the accompany notes to the basic financial statements. 20 ---PAGE BREAK--- Mental Other Health Governmental Total ASSETS 67,733 $ 7,524,184 $ 31,921,869 $ Cash and investments - 51,586 77,789 Accounts receivable - 24,958 372,254 Taxes receivable 80,183 383,347 1,327,245 Due from other governments 347 32,126 131,757 Interest receivable - 3,973 21,204 Prepaid expenses - - 1,484,973 Deposits - - 161,208 Inventories 2,250 211,304 468,832 Due from other funds - 2,800 62,800 Advance to other funds 150,513 $ 8,234,278 $ 36,029,931 $ Total Assets LIABILITIES 19,843 $ 176,901 $ 543,853 $ Accounts payable 2,209 42,192 233,849 Accrued salaries and benefits - - 144,471 Due to other government 325,833 62,949 505,214 Due to other funds - 32,800 62,800 Advance from other funds - 21,834 25,045 Unearned revenues 347,885 336,676 1,515,232 Total Liabilities DEFERRED INFLOWS OF RESOURCES - 370,024 850,615 Unavailable revenues FUND BALANCES - 480,464 2,203,876 Nonspendable - 5,680,856 24,043,775 Restricted - 1,236,507 1,236,507 Committed - 271,312 3,633,629 Assigned (197,372) (141,561) 2,546,297 Unassigned (197,372) 7,527,578 33,664,084 Total Fund Balances Total Liabilities, Deferred Inflows 150,513 $ 8,234,278 $ 36,029,931 $ of Resources and Fund Balances ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 21 COUNTY OF ALPINE Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds June 30, 2018 Fund balance - total governmental funds 33,664,084 $ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds Governmental capital assets 64,689,985 $ Less: accumulated depreciation (48,216,075) 16,473,910 Revenues that are not available and, therefore, do not meet the modified accrual criteria are deferred in the governmental funds but are recorded in the statement of activities 850,615 Deferred outflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 4,188,005 Deferred inflows of resources in governmental activities does not require the use of financial resources and, therefore, are not reported in the governmental funds (1,000,410) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Estimated liability for claims costs (727,073) Capital leases (929,336) Compensated absences (573,239) Other post-employment benefits (11,600,165) Net pension liability (11,724,223) Accrued interest payable (2,904) Net position of governmental activities 28,619,264 $ ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2018 Mental General Road Health Realignment Fund Fund Services Act Fund REVENUES Taxes 6,256,608 $ - $ - $ - $ Licenses and permits 29,266 1,645 - - Fines, forfeitures and penalties 344,640 1,463 - - Use of money and property 101,451 15,934 65,897 101,754 Intergovernmental 1,041,051 1,292,057 1,515,977 2,306,751 Charges for services 828,567 374,295 - - Other revenues 155,230 1,489 - - Total Revenues 8,756,813 1,686,883 1,581,874 2,408,505 EXPENDITURES Current: General government 2,827,295 - - - Public protection 4,466,904 - - 102,168 Public ways and facilities 78,892 1,241,568 - - Health and sanitation 206,392 - 1,511,410 - Public assistance 547,429 - - - Education 382,919 - - - Recreation and cultural services 41,347 - - - Capital outlay 123,114 513,919 11,500 - Debt service: Principal - - - - Interest and issuance cost - - - - Total Expenditures 8,674,292 1,755,487 1,522,910 102,168 Excess (Deficiency) of Revenues Over (Under) Expenditures 82,521 (68,604) 58,964 2,306,337 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets 18,730 20,880 - - Transfers in 1,002,972 130,634 - 100,001 Transfers out (564,913) (69,334) (230,000) (554,169) Total Other Financing Sources and (Uses) 456,789 82,180 (230,000) (454,168) NET CHANGES IN FUND BALANCES 539,310 13,576 (171,036) 1,852,169 Fund Balances, Beginning of Year 7,551,986 1,436,738 6,326,380 8,784,755 FUND BALANCES, END OF YEAR 8,091,296 $ 1,450,314 $ 6,155,344 $ 10,636,924 $ See the accompanying notes to the basic financial statements. 22 ---PAGE BREAK--- Mental Other Health Governmental Total REVENUES - $ 329,980 $ 6,586,588 $ Taxes - 86,954 117,865 Licenses and permits - 1,261 347,364 Fines, forfeitures and penalties 1,284 119,803 406,123 Use of money and property 233,505 3,500,184 9,889,525 Intergovernmental - 529,671 1,732,533 Charges for services - 217,603 374,322 Other revenues 234,789 4,785,456 19,454,320 Total Revenues EXPENDITURES Current: - 65,371 2,892,666 General government - 752,085 5,321,157 Public protection - 456,939 1,777,399 Public ways and facilities 546,840 1,272,457 3,537,099 Health and sanitation - 1,084,380 1,631,809 Public assistance - - 382,919 Education - - 41,347 Recreation and cultural services - 776,182 1,424,715 Capital outlay Debt service: - 75,327 75,327 Principal - 36,969 36,969 Interest and issuance cost 546,840 4,519,710 17,121,407 Total Expenditures Excess (Deficiency) of Revenues Over (312,051) 265,746 2,332,913 (Under) Expenditures OTHER FINANCING SOURCES (USES) - 3,880 43,490 Sale of assets 50,000 1,186,799 2,470,406 Transfers in - (1,051,990) (2,470,406) Transfers out 50,000 138,689 43,490 Total Other Financing Sources and (Uses) (262,051) 404,435 2,376,403 NET CHANGES IN FUND BALANCES 64,679 7,123,143 31,287,681 Fund Balances, Beginning of Year (197,372) $ 7,527,578 $ 33,664,084 $ FUND BALANCES, END OF YEAR ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 23 COUNTY OF ALPINE Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended June 30, 2018 Net change to fund balance - total governmental funds 2,376,403 $ Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Expenditures for general capital assets, infrastructure, and other related capital asset adjustments 1,520,598 Less: current year depreciation (1,178,881) 341,717 Pension contributions made subsequent to the measurement date is an expenditure in the governmental funds, but reported as a deferred outflow of resources in the government-wide financial statements 128,620 OPEB contributions made subsequent to the measurement date is an expenditure in the governmental funds, but reported as a deferred outflow of resources in the government-wide financial statements 566,258 Unavailable revenues are reported as deferred inflows of resources in the governmental funds, but are recognized as revenues in the statement of activities 61,495 Repayment of long-term liabilities are expendidtures in the governmental funds but reduces long-term liabilitiens in the statement of net position Capital lease repayments 75,327 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Change in accrued interest on long-term debt 236 Change in compensated absences (51,938) Change in estimated liability for claims costs 26,542 (25,160) Changes to net pension liability and pension related deferred outflows or inflows of resources do not provide or require the use of current financial resources and therefore are not reported as expenditures in governmental funds (738,390) Changes to net OPEB liability and OPEB related deferred outflows or inflows of resources do not provide or require the use of current financial resources and therefore are not reported as expenditures in governmental funds (604,430) Change in net position of governmental activities 2,181,840 $ Amounts reported for governmental activities in the statement of activities are different because: ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 24 COUNTY OF ALPINE Statement of Net Position Proprietary Funds - Alpine Transit Service June 30, 2018 ASSETS Current Assets: Cash and investments 2,246 $ Accounts receivable 12 Due from other governments 46,604 Interest receivable 49 Due from other funds 36,382 Total Current Assets 85,293 Non-Current Assets: Equipment, net of accumulated depreciation 57,013 Total Assets 142,306 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 19,585 LIABILITIES Current Liabilities: Accounts payable 192 Accrued salaries and benefits 1,115 Unearned revenue 96,166 Total Current Liabilities 97,473 Noncurrent Liabilities: Net pension liability 62,660 Total Liabilities 160,133 DEFERRED INFLOWS OF RESOURCES Pension adjustments 3,586 NET POSITION Net investment in capital assets 57,013 Unrestricted (58,841) Total Net Position (1,828) $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 25 COUNTY OF ALPINE Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2018 OPERATING REVENUES Passenger fares 5,370 $ OPERATING EXPENSES Salaries and benefits 64,451 Adminstrative 20,623 Fuel and vehicle maintenance 7,976 Insurance 6,288 Depreciation 13,146 Total Operating Expenses 112,484 OPERATING INCOME (LOSS) (107,114) NON-OPERATING REVENUES (EXPENSES) Federal Transit Administration operating grant 43,060 Local Transportation Fund allocation 62,882 Interest 311 Total Non-Operating Revenues (Expenses) 106,253 CHANGE IN NET POSITION (861) Net Position, Beginning of Year (967) NET POSITION, END OF YEAR (1,828) $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 26 COUNTY OF ALPINE Statement of Cash Flows Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2018 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 5,358 $ Cash paid to employees (54,883) Cash paid to suppliers for goods and services (36,607) Net Cash Used by Operating Activities (86,132) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments 226 Net Cash Provided by Investment Activities 226 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 99,809 Net Cash Provided by Noncapital Financing Activities 99,809 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contribution Acquisition of capital assets (11,657) Net Cash Used in Capital and Related Financing Activities (11,657) NET INCREASE IN CASH AND CASH EQUIVALENTS 2,246 Cash and Cash Equivalents, Beginning of Year - CASH AND CASH EQUIVALENTS, END OF YEAR 2,246 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (107,114) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 13,146 Changes in assets and liabilities: Accounts receivable (12) Deferred outflows (6,740) Accounts payable (1,720) Accrued salaries and benefits (179) Deferred inflows (40) Net pension liability 16,527 NET CASH USED BY OPERATING ACTIVITIES (86,132) $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 27 COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2018 Investment Agency Trust Funds ASSETS Cash and investments 7,849,477 $ 276,128 $ Accounts receivable - 81,358 Interest receivable 32,232 155,816 Total Assets 7,881,709 513,302 LIABILITIES Accounts payable 44,281 210,341 Agency obligations - 302,961 Total Liabilities 44,281 513,302 NET POSITION Net position held in trust for investment pool participants 7,837,428 - Total Net Position 7,837,428 $ - $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 28 COUNTY OF ALPINE Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2018 Investment Trust ADDITIONS Contributions to investment pool 6,408,429 $ Investment earnings 77,875 Total Additions 6,486,304 DEDUCTIONS Distributions from pooled investment accounts 5,976,704 Total Deductions 5,976,704 CHANGE IN NET POSITION 509,600 Net Position, Beginning of Year 7,327,828 NET POSITION, END OF YEAR 7,837,428 $ ---PAGE BREAK--- 29 NOTES TO FINANCIAL STATEMENTS The notes provided in the financial section of this report are considered an integral and essential part of adequate disclosure and fair presentation of this report. The notes include a summary of significant accounting policies for the County, and other necessary disclosures of pertinent matters related to the financial position of the County. The notes express significant insight to the financial statements and are conjunctive to understanding the rationale for presentation of the financial statements and information contained in this document. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 30 Note 1: Summary of Significant Accounting Policies The accounting methods adopted by the County conform to accounting principles generally accepted in the United States of America as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the County’s accounting policies are described below. A. Description of the Reporting Entity The County is a legal subdivision of the State of California whereby it can exercise the powers specified by the constitution and statutes of the State of California. The County operates under an Administrator-Board of Supervisors form of government with legislative and executive control held by an elected five member Board of Supervisors. Major services provided by the County to its citizens include: public protection, public ways and facilities, health and sanitation, public assistance, education, culture and recreation and general services. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable under the criteria set by Governmental Accounting Standards Board (GASB) Statement No. 61, “Financial Reporting Entity: Omnibus”. Reporting for component units on the County’s financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Blended component units are an extension of the County and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the basic financial statements to emphasize they are legally separate from the County. Each component unit has a June 30th year-end. Blended Component Units. The County Service Area #1 and Alpine County Local Transportation Commission are districts governed by the County Board of Supervisors. The component unit’s governing body is substantially the same as the primary government; hence, these units are presented by blending them with the primary government. Financial statements for the Alpine County Local Transportation Commission can be obtained at P.O. Box 266, Markleeville, CA 96120. Discretely Presented Component Units. The nine members of the Alpine County Children and Families Commission are appointed by the Alpine County Board of Supervisors and may be removed at any time without cause. Because the County Board of Supervisors can impose their will on the Commission, the Commission is considered a component unit of the County. The Commission is discretely presented because the two boards are not substantially the same and their operations are separate. Separately issued financial statements may be obtained by contacting the Commission at 100 Foothill Road, Suite D-3, Markleeville, CA 96120. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 31 B. Basis of Presentation Government-Wide Financial Statements The statement of net position and statement of activities display information about the primary government (the County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties. The statement of activities presents a comparison between program expenses and program revenues for each segment of the business-type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements The fund financial statements provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. Proprietary fund operating revenues include charges for the goods or services provided by the fund as part of its principal activity and result from exchange transactions. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include the costs of providing services and delivering goods. All other expenses not meeting this definition are reported as nonoperating expenses. The County reports the following major governmental funds: x The General Fund is the County’s primary operating fund and is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. For the County, the General Fund includes such activities as public protection, public ways and facilities, health and sanitation, public assistance, education, recreation services and general services. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 32 x The Road Fund was established to provide for maintenance and construction of roadways. Revenues consist primarily of the County’s share of state highway use tax and are supplemented by federal and state funds. x The Mental Health Services Act Fund was established to account for Proposition 63 passed in 2004 to expand and further develop mental health services in the County. x The Realignment Fund was established to account for State realigned revenues generated from sales taxes and vehicle license fees that are restricted to expenditure for specific social, health, mental health and public safety programs. x The Mental Health Fund was established to account for mental health services in the County. The County reports its only enterprise fund described below as a major fund: x The Alpine Transit Service Fund provides public transit services in the County. The County reports the following fiduciary fund types: x The Investment Trust Fund accounts for the assets of legally separate entities, which invest in the County Treasurer’s investment pool. These entities include one school district and several special districts governed by local boards. These funds represent the assets, primarily cash and investments, and the related liability of the County to disburse these monies on demand. x The Agency Funds account for assets held by the County as an agent for various individuals or other local governments. These funds are custodial in nature and do not involve measurement of results or operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. C. Basis of Accounting The government-wide, proprietary and investment trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 33 Governmental funds financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property taxes, sales and other taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days of the end of the fiscal year so as to be both measurable and available. Licenses, permits, fines, forfeitures, and other revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Agency funds apply the accrual basis of accounting but do not have a measurement focus. D. Cash and Cash Equivalents For purposes of the accompanying statement of cash flows, the enterprise fund considers all highly liquid investments with a maturity of three months or less when purchased and their equity in the County Treasurer’s investment pool to be cash equivalents. E. Investments California Government Code Section 53600, et seq., authorizes the County to invest in obligations of the U.S. Treasury, agencies and instrumentalities, obligations of the state or any local agency of the State of California, bankers’ acceptances, commercial paper, negotiable certificates of deposits, repurchase agreements or reverse repurchase agreements, medium-term notes issued by corporations and the State of California Local Agency Investment Fund. The County Treasurer may also invest in certain open-ended mutual funds permitted by the Government Code. The County follows the practice of pooling cash and investments of all funds with the County Treasurer. The Alpine County Treasury Pool (Pool) is not registered as an investment company with the Securities and Exchange Commission (SEC) nor is it an SEC Rule 2a7-like pool. Interest earned on pooled investments is apportioned quarterly to certain participating funds based upon each fund’s average deposit balance with all remaining interest deposited in the County’s General Fund. Investments are stated at fair value in the statement of net position and balance sheet and the corresponding changes in the fair value of investments are recognized in the year in which the change occurred. Except for the County’s investment in the California Local Agency Investment Fund (LAIF), fair value is determined annually based on quoted market prices received from the securities custodian. The County’s investment in LAIF is determined on an amortized basis which approximates fair value. The value of the participants’ pool shares is based on amortized cost, which is different than fair value. The County has not provided nor obtained any legally binding guarantees during the year ended June 30, 2018, to support the value of pool shares. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 34 F. Inventory Inventories are valued at cost on a moving average basis. The cost is recorded as expenditures at the time individual inventory items are consumed. Inventories reported in the governmental funds are equally offset by a nonspendable fund balance amount, which indicates that inventories do not represent expendable available financial sources. Inventories in the Road fund, a major special revenue fund, consist of road supplies, fuel and various consumable items. G. Prepaid Expenses/Items and Deposits Payments made for services that will benefit periods beyond June 30, 2018, are recorded as prepaid expenses/items. Payments made in advance of the receipt of goods or property is recorded as deposits. In the fund financial statements, prepaid items and deposits are offset by a corresponding nonspendable portion of fund balance to indicate they are not available for appropriation and are not expendable available financial resources. H. Capital Assets Capital assets include land, land improvements, buildings and improvements, machinery and equipment and infrastructure. Assets that are purchased or constructed are reported at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. Capital outlays are recorded as expenditures in the governmental funds and as additions to capital assets in the proprietary and the government-wide financial statements, in accordance with the County’s capitalization policy. The County defines capital assets as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Capital assets used in operations are depreciated or amortized (assets under capital leases) in the government-wide statements and proprietary funds using the straight-line method over the estimated useful lives. The estimated useful lives are as follows: Infrastructure (roads and bridges) 40 to 60 years Land improvements 15 years Structures and improvements 15 to 40 years Machinery and equipment 3 to 7 years ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 35 I. Compensated Absences County employees are entitled to certain compensated absences based on their length of employment and position held. Vacation pay is subject to certain maximum accumulations and is payable upon separation from County employment. Employees accrue vacation at the rate of 10 to 20 days per year dependent on length of employment. Unused vacation time accrued is payable at 100 percent of the accrual at separation of employment up to a maximum of 30 days. Sick leave is accrued at the rate of 12 days per year. At termination, accrued sick leave is payable at 20 percent to those with fewer than five years of service and 25 percent to those with more than five years of service. The County accounts for compensated absences (unpaid vacation, sick leave and compensatory time) in accordance with GASB Statement No. 16. Because vacation, sick leave and other compensated absence balances do not require the use of current financial resources, no liability is recorded within the governmental funds. In governmental funds, compensated absences are recorded as expenditures in the year paid. The liability for compensated absences is reflected in the government-wide statement of net position in the period that the benefits accrue to employees. J. Deferred Outflows / Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. As of June 30, 2018, the County had deferred outflows of resources related to pensions. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County had deferred inflows of resources consisting of unavailable revenues reported under the modified accrual basis of accounting in the governmental funds balance sheet and related to pensions in its proprietary and government-wide statements. The governmental funds report unavailable revenues from property taxes, intergovernmental, and other sources as appropriate. The amounts are deferred and recognized as revenues in the period the amounts become available. K. Pensions In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The County recognizes a net pension liability for each qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as of the County’s fiscal year-end or the County’s proportionate share thereof in the case of a cost-sharing multiple-employer plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 36 Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. L. Postemployment Benefits Other than Pensions (OPEB) In government-wide financial statements and proprietary fund financial statements, retirement OPEB plans are required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension OPEB expenditures on the governmental fund statements, which use the modified accrual basis of accounting. In general, the County recognizes a net OPEB liability, which represents the County’s proportionate share of the excess of the total OPEB liability over the fiduciary net position of the OPEB Plan reflected in the actuarial report provided by Nyhart. The net OPEB liability is measured as of the County’s prior fiscal year- end. Changes in the net OPEB liability are recorded, in the period incurred, as OPEB expenses or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net OPEB liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the OPEB plan and are recorded as a component of OPEB expense beginning with the period in which they are incurred. For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the County’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. M. Property Tax Revenue Property taxes, including tax rates, are regulated by the State and are administered locally by the County. The County is responsible for assessing, collecting and distributing property taxes in accordance with state law. Property taxes attach as an enforceable lien at January 1. Taxes are levied on July 1 and are payable in two installments, December 10 and April 10. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 37 All general property taxes are allocated to the various taxing entities per the legislation implementing Article XIII of the California Constitution (commonly referred to as Proposition 13). General property taxes are based either on a flat one percent rate applied to the 1975/1976 full value of the property or on one percent of the sales price of the property on sales transactions and construction after the 1975/1976 valuation. Taxable values on properties (exclusive of increases related to sales and construction) can rise at a maximum rate of two percent per year. The method of allocation used by the County is subject to review by the State of California. The County recognizes property tax revenues in the period for which the taxes are levied. N. Interfund Transactions Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” the current portion of interfund loans) or “advances to/from other funds” the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance amount in the applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or business-type activities are netted as part of the reconciliation to the government-wide presentation. O. Net Position The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: x Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. x Restricted Net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. x Unrestricted Net position – This category represents net position of the County, not restricted for any project or other purpose. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 38 When both restricted and unrestricted net position is available, the County considers restricted net position to have been depleted before unrestricted net position is applied. P. Fund Balance In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent. x Nonspendable fund balance – Amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to remain intact. x Restricted fund balance – Amounts with constraints placed on their use that are externally imposed by creditors, grantors, contributors, or laws and regulations of other governments. Constraints may also be imposed by law through constitutional provisions or enabling legislation. x Committed fund balance – Amounts that can only be used for specific purposes determined by formal action of the County’s highest level of decision-making authority (the Board of Supervisors) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. x Assigned fund balance – Amounts that are constrained by the County’s intent to use resources for specific purposes. The intent can be established at either the highest level of decision-making or by a body or an official designated for that purpose. This is also the classification for residual fund balance in all governmental funds other than the General Fund. x Unassigned fund balance – The residual classification for the County’s General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if the expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned to those purposes deficit fund balance). The Board of Supervisors establishes, modifies or rescinds fund balance commitments and assignments by passage of an ordinance or resolution and through adoption of the budget and subsequent budget amendments that occur throughout the year. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, followed by committed, assigned and unassigned resources as they are needed. Q. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 39 Note 2: Cash and Investments At June 30, 2018, total County cash and investments were as follows: Total cash and investments at June 30, 2018 were presented on the County’s financial statements as follows: The investment pool includes both voluntary and involuntary participation from external entities. The State of California statutes require certain districts and other governmental entities to maintain their cash surplus with the County Treasurer. Investments The County’s cash and investments are invested by the County Treasurer. The Treasury Oversight Committee has oversight for all monies deposited into the Treasury Pool. Such amounts are invested in accordance with investment policy guidelines established by the County Treasurer and reviewed and approved by the Board of Supervisors. The objectives of the policy are, in order of priority, safety of principal, liquidity and yield. The policy addresses the soundness of financial institutions in which the County will deposit funds, types of investment instruments as permitted by California Government Code and the percentage of the portfolio that may be invested in certain instruments. Cash: Cash on hand $ 554 Imprest accounts 380 Outstanding warrants (443,161) Deposits 1,498,731 Total Cash 1,056,504 Investments: In Treasurer's Pool 38,993,216 Total Cash and investments $ 40,049,720 Primary government $ 31,924,115 Investment trust fund 7,849,477 Agency funds $ 276,128 Total Cash and investments 40,049,720 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 40 The table below identifies the investment types that are authorized for the County by the California Government Code or the County’s investment policy, where more restrictive. The table also identifies certain provisions of the County’s investment policy that address interest rate risk, credit risk and concentration risk. At June 30, 2018, the County had the following investments: A copy of the County investment policy is available upon request from the Alpine County Finance Department at P.O. Box 266, Markleeville CA 96120 or by calling (530) 694-2284. Fair Value Measurements The Pool categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered hierarchy, as follows: x Level 1: Investments reflect prices quoted in active markets; x Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and, x Level 3: Investments reflect prices based upon unobservable sources Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio in One Issuer Local Agency Bonds 1 Year 5% None U.S. Treasury Obligations 5 Years None None U.S. Agency Obligations 5 Years None None Collateralized Bank Deposits 1 Year 10% None Money Market Mutual Funds N/A 15% 10% Local Agency Investment Fund (LAIF) N/A None None Weighted Fair Average Maturity Investment Rates Maturities Par Value (Days) Investments in Investment Pool: U.S. Treasuries 0.75% - 2.125% 8/31/18 - 11/30/21 $ 2,545,000 $ 2,499,339 642.4 Federal Agency Obligations 1.150% - 2.700% 9/8/18 -6/10/22 4,215,000 4,153,645 693.5 Money Market Mutual Funds Variable On Demand 28,001 28,001 0 LAIF Variable On Demand 32,312,231 32,312,231 193 $ 39,100,232 $ 38,993,216 273.6 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 41 Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The general rule is the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The County manages its exposure to declines in fair value by purchasing a combination of shorter term and longer term investments and by timing maturities to provide the necessary cash flow and liquidity needed for operations. The County monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity (WAM) of its portfolio. At June 30, 2018, the County’s portfolio WAM associated with the investment pool was 273.6 days. Credit Risk – Generally, custodial credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the County’s policy to purchase investments meeting ratings requirements established by the California Government Code. Concentration of Credit Risk – State law limits investments in money market mutual funds, collateralized bank deposits and local agency bonds to no more than 15%, 10% and respectively, of the investment pool at the time of purchase. State law also limits investments in any one money market mutual fund to no more than 10% of the investment pool at the time of purchase. The County’s investment policy adheres to these limitations established by California Government Code. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the County’s Investment Pool’s fair value at June 30, 2018. Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Investments By Fair Value Level Value (Level 1) (Level 2) (Level 3) Federal Agency Obligations $ 4,153,645 $ 4,153,645 $ - $ - U.S. Treasuries 2,499,339 2,499,339 - - Money Market Mutual Funds 28,001 28,001 - - Total Investments Measured at Fair Value 6,680,985 $ 6,680,985 $ - $ - Unclassified Investments: Local Agency Investment Fund 32,312,231 Total Investments $ 38,993,216 Credit Rating % Investment in Pool Moody's/S&P/Finch Holdings Federal Agency Obligations Aaa/AA+/AAA 10.65% U.S. Treasuries Aaa/AA+/AAA 6.41% Money Market Mutual Funds Aaa/AAA/AAA 0.07% LAIF Not Rated 82.87% 100.00% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 42 Custodial Credit Risk – The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. At year end, the County’s investment pool had no securities exposed to custodial credit risk. Investment in the Local Agency Investment Fund The County Treasurer’s Pool maintains an investment in the State of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the State in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer’s Office. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California Government Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board has oversight responsibility for LAIF. This Board consists of five members as designated by State Statute. At June 30, 2018, the County’s investment position in LAIF was $32,312,231. The value of pool shares in LAIF is determined on an amortized cost basis, which is different than the fair value of the pooled treasury’s portion in the pool. The total amount invested by all public agencies in PMIA on that day was $88.8 billion. Of that amount, 2.67% was invested in structured notes and asset-backed securities with the remaining 97.33% invested in other non-derivative financial products. The average maturity of PMIA investments was 193 days as of June 30, 2018. LAIF operates and reports to participants on an amortized cost basis. The income, gains, and losses, net of administrative fees, are allocated based upon the participant’s average daily balance. Deposits in LAIF are not insured or otherwise guaranteed by the State of California and participants share proportionately in any realized gains or losses on investments. The fair value of LAIF is approximately equal to the value of pool shares. Withdrawals from LAIF are done on a dollar to dollar basis. County Investment Pool The County’s Investment Pool includes amounts held for its one school district whose participation in the Treasury Pool is mandated by State code. At June 30, 2018, involuntary participants of the County’s investment pool totaled $7,800,365. The County investment pool is not registered with the Securities and Exchange Commission as an investment company. Investments made by the Treasurer are regulated by the California Government Code and by the County’s investment policy. The County has established a treasury oversight committee to monitor and review the management of public funds maintained in the investment pool in accordance with Article 6, Section 27131 of the California Government Code. The oversight committee and the Board of Supervisors review and approve the investment policy annually. The County Treasurer prepares and submits a comprehensive investment report to the members of the oversight committee and the investment pool participants every month. The report covers the type of investments in the pool, maturity dates, par value, actual costs and fair value. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 43 The following represents a condensed statement of net position and changes in net position for the County’s investment pool as of June 30, 2018: Note 3: Interfund Transactions Interfund Receivables and Payables Interfund receivables and payables result from the time lag between the dates that transactions are recorded in the accounting system and the date payments between funds are made. Interfund receivables and payables also result from short-term loans to participants in the County’s Investment Pool whose investment accounts are deficit. Statement of Net Position Net position held for pool participants $ 40,049,720 Equity of External pool participants $ 7,849,477 Equity of Internal pool participants 32,200,243 Total Net Position $ 40,049,720 Statement of Changes in Net Position Investment earnings $ 543,533 Investment expenses (37,274) Net contributions by pool participants 2,003,255 Decrease in Net Position $ 2,509,514 Net Position at July 1, 2017 37,540,206 Net Position at June 30, 2018 $ 40,049,720 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 44 The composition of interfund balances classified as due to/from other funds as of June 30, 2018 is as follows: Receivable Fund Payable Fund Amount General Fund Realignment Fund $ 21,065 21,065 Road Fund Other Governmental Funds 20,027 20,027 Mental Health Services Act Mental Health 194,848 Other Governmental Funds 9 194,857 Realignment Fund General Fund 16,708 Other Governmental Funds 2,621 19,329 Mental Health Other Governmental Funds 2,250 2,250 Other Governmental Funds Realignment Fund 78,659 Mental Health 130,985 Other Governmental Funds 1,660 211,304 Transit Other Governmental Funds 36,382 $ 505,214 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 45 Transfers Transfers are indicative of funding for capital projects, lease payments for debt service, subsidies of various County operations and re-allocations of special revenues. The following schedules summarize the County’s transfer activity during the fiscal year ended June 30, 2018: Transfers between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Road Fund $ 130,634 Non-major Governmental Funds 434,279 564,913 Road Fund General Fund 69,334 Mental Health Services Act Non-major Governmental Funds 230,000 Realignment Fund General Fund 105,758 Non-major Governmental Funds 448,411 554,169 Other Governmental Funds General Fund 827,880 Realignment Fund 100,001 Mental Health 50,000 Non-major Governmental Funds 74,109 1,051,990 $ 2,470,406 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 46 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2018 was as follows: Balance Transfers & Balance July 1, 2017 Additions Retirements Adjustments June 30, 2018 Governmental Activities: Total capital assets, not being depreciated Land $ 1,220,599 $ - $ - $ - $ 1,220,599 Construction in progress 1,003,595 855,716 (597,794) - 1,261,517 Total capital assets, not being depreciated 2,224,194 855,716 (597,794) - 2,482,116 Total capital assets, being depreciated Structures and improvements 15,076,549 348,913 - - 15,425,462 Equipment 11,173,728 732,983 - - 11,906,711 Infrastructure 34,694,917 180,780 - - 34,875,697 Total capital assets, being depreciated 60,945,194 1,262,676 - - 62,207,870 Less accumulated depreciation for: Structures and improvements (4,944,881) (497,231) - - (5,442,112) Equipment (8,342,037) (651,984) - - (8,994,021) Infrastructure (33,750,277) (29,666) - - (33,779,943) Total accumulated depreciation (47,037,195) (1,178,881) - - (48,216,076) Total capital assets, being depreciated, net 13,907,999 83,795 - - 13,991,794 Governmental activities capital assets, net $ 16,132,193 $ 939,511 $ (597,794) $ - $ 16,473,910 Business-Type Activities: Total capital assets, being depreciated Structures and improvements $ - $ 11,657 $ - $ - $ 11,657 Equipment 143,959 - - - 143,959 Total capital assets, being depreciated 143,959 11,657 - - 155,616 Less accumulated depreciation for: Structures and improvements - (145) - - (145) Equipment (85,457) (13,001) - - (98,458) Total accumulated depreciation (85,457) (13,146) - - (98,603) Business-Type activities capital assets, net $ 58,502 $ (1,489) $ - $ - $ 57,013 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 47 Depreciation expense was charged to governmental functions as follows: Depreciation expense was charged to the business-type activities as follows: Note 5: Long-Term Liabilities The following is a summary of long-term liabilities activity for the fiscal year ended June 30, 2018: The Debt Service fund is responsible for the payments on the County’s capital lease. Liabilities for other postemployment benefits and compensated absences are generally liquidated by the General Fund and special revenue funds. Payments toward the net pension liability are generally liquidated by the General Fund, the special revenue funds and the Transit fund. Claims are paid by the General Fund. General government $ 276,513 Public protection 531,175 Public ways and facilities 207,395 Health and sanitation 43,986 Public assistance 72,823 Education 398 Recreation and cultural services 46,591 Total depreciation expense governmental activities $ 1,178,881 Alpine Transit Service $ 13,146 Balance Balance Amounts Due July 1, 2017 Additions Retirements June 30, 2018 Within One Year Governmental Activities: Capital leases payable $ 1,004,663 $ - $ (75,327) $ 929,336 $ 78,179 Net pension liability 10,212,022 2,609,128 (1,096,927) 11,724,223 - Other postemployment benefits 1,515,221 12,113,934 (2,028,990) 11,600,165 - Compensated absences 521,301 312,588 (260,650) 573,239 286,620 Liability for claims costs 753,615 260,149 (286,691) 727,073 727,073 $ 14,006,822 $ 15,295,799 $ (3,748,585) $ 25,554,036 $ 1,091,872 Business-type Activities: Net pension liability $ 46,133 $ 21,388 $ (4,861) $ 62,660 $ - $ 46,133 $ 21,388 $ (4,861) $ 62,660 $ - ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 48 Note 6: Capital Lease The County leases certain facilities under a lease obligation accounted for as capital leases where the related facilities will become property of the County when all terms of the lease agreement is met. The following is a summary of the County’s capital lease agreement as of June 30, 2018: Included in the governmental activities are the following capital asset amounts under capital leases: As of June 30, 2018, future minimum lease payments under capital leases were as follows: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2018 Alpine County Government Center 3.75% $ 929,336 Accumulated Cost Depreciation Book Value Administration building $ 200,760 $ 17,566 $ 183,194 Community development building 943,884 106,186 837,698 Sheriff secure storage facility 155,356 17,478 137,878 $ 1,300,000 $ 141,230 $ 1,158,770 Year Ending June 30: 2019 $ 112,296 2020 112,296 2021 112,296 2022 112,296 2023 112,296 2024-2028 561,477 Total Future Minimum Lease Payments 1,122,957 Less: Interest (193,621) Present Value of Minimum Lease Payments $ 929,336 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 49 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2018 are as follows: The general reserve is subject to the provisions of Government Code sections 29085, 29086 and 29127, whereby appropriation from the general reserve may be used only in cases of certain emergency situations. Because this stabilization arrangement does not meet the criteria described in GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, to be reported within the restricted or committed fund balance categories, it has been classified as unassigned in these statements. Mental General Road Health Realignment Mental Other Fund Fund Services Act Fund Health Governmental Total Nonspendable: Permanent funds $ - $ - $ - $ - $ - $ 473,691 $ 473,691 Deposits 1,484,973 - - - - - 1,484,973 Prepaid expenses 12,234 3,394 1,603 - - 3,973 21,204 Inventories - 161,208 - - - - 161,208 Advances 60,000 - - - 2,800 62,800 Total Nonspendable 1,557,207 164,602 1,603 - - 480,464 2,203,876 Restricted: Public protection - - - 1,147,309 - 2,916,556 4,063,865 Public ways and facilities - 1,285,712 - - - 408,968 1,694,680 Health and sanitation - - 6,153,741 4,240,770 - 962,714 11,357,225 Public assistance - - - 5,248,845 - 193,704 5,442,549 Capital projects - - - - - 337,624 337,624 CSA - - - - - 737,562 737,562 Other 286,542 - - - - 123,728 410,270 Total Restricted 286,542 1,285,712 6,153,741 10,636,924 - 5,680,856 24,043,775 Committed: Capital projects - - - - - 1,236,507 1,236,507 Total Committed - - - - - 1,236,507 1,236,507 Assigned: Critical services - - - - - - - Sheriff capital replacement - - - - - - - Capital projects - - - - - 114,434 114,434 Courthouse 367,145 - - - - - 367,145 Post-employment benefits 522,131 - - - - - 522,131 Eliminate projected 2015-16 budgetary deficit - - - - - - - Other 2,473,041 - - - - 156,878 2,629,919 Total Assigned 3,362,317 - - - - 271,312 3,633,629 Unassigned 2,885,230 - - - (197,372) (141,561) 2,546,297 Total Fund Balances $ 8,091,296 $ 1,450,314 $ 6,155,344 $ 10,636,924 $ (197,372) $ 7,527,578 $ 33,664,084 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 50 Net position from governmental activities as of June 30, 2018, was restricted for the following purposes: Deficit fund balances / net position as of June 30, 2018, were as follows: Fund deficits in capital project funds are caused by a delay in contributions earmarked to cover expenditures. Fund deficits in the grant funds result from the deferral of revenues collected more than sixty days after the end of the fiscal year. The collection of receivables in the next fiscal year is expected to eliminate the deficit balances. Note 8: County Employees Retirement Plan (Defined Benefit Pension Plan) General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees of Alpine County and Alpine County Superior Court are eligible to participate in the Country’s separate Safety (Sheriff) and Miscellaneous (all others) cost sharing multiple employer defined benefit pension plans, Employee Pension Plans, administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating member employers. Benefit provisions Capital projects $ 337,624 Public protection 5,129,096 Public ways and facilities 1,913,538 Health and sanitation 10,376,743 Public assistance 5,591,097 County Service Area #1 806,724 Other: Trust for Public Land - nonexpendable 473,691 Administrative Services 124,620 $ 24,753,133 Governmental Funds: Mental Health 197,372 Environmental Health 13,944 District Attorney Victim Witness Grant Grant fund 27,487 COPS Grant Grant fund 790 Alpine County Transportation Commission Transportation fund 56,562 Chamber of Commerce Programs Economic development 30 SNC Prop 84 Grant Grant fund 24,255 Public Health Miscellaneous Grants Grant fund 15,033 Enterprise Fund: Alpine Transit Services Transportation fund 1,828 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 51 under the Plans are established by State statute and County resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Effective January 1, 2013, the County added retirement tiers for the Miscellaneous Plan and Safety Plan for new employees as required under the Public Employee Pension Reform Act (PEPRA). New employees hired on or after January 1, 2013 will be subject to new, lower pension formulas, caps on pensionable income levels and new definitions of pensionable income. In addition, new employees will be required to contribute half of the total normal cost of the pension benefit unless impaired by an existing Memorandum of Understanding. The cumulative effect of these PEPRA changes will ultimately reduce the County’s retirement costs. As of the valuation date there were no Safety PEPRA employees. Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2018 are summarized as follows: Provision terminated effective January 1, 2015. Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for all Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The County is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Provisions and Benefits Miscellaneous 1st Tier Miscellaneous PEPRA Safety 1st Tier Safety PEPRA Hire date Prior to January 1, 2013 After December 31, 2012 Prior to January 1, 2013 After December 31, 2012 Benefit formula 2% at 55 2% at 62 3% at 50 2.7% at 57 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments for life for life for life for life Retirement age 50-55 50-62 50 50-57 benefits, as a % of eligible compensation 1.426% to 2.418% 1% to 2.5% 3% 2% to 2.7% Required employee contribution rates 7.000% 6.500% 9.000% 12.250% Required employer contribution rates 9.558% 6.930% 21.230% 12.821% Employer paid member contribution rates 2% to 7% depending on length of service None None None ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 52 For the year ended June 30, 2018, the contributions recognized as part of pension expense for each Plan were as follows: Pension Liabilities, Pension Expenses and Deferred Outflows/inflows of Resources Related to Pensions As of June 30, 2018, the County reported net pension liabilities for its proportionate shares of the net position liability of each Plan as follows: The County’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2017, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2016, rolled forward to June 30, 2017, using standard update procedures. The County’s proportion of the net pension liability was based on a projection of the County’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The County’s proportionate share of the net pension liability for each Plan as of June 30, 2016 and 2017 was as follows: Miscellaneous Miscellaneous Safety Safety 1st Tier PEPRA 1st Tier PEPRA Contributions - employer $ 586,535 $ 95,745 $ 381,369 $ 26,273 Proportionate Share of Net Pension Liability Miscellaneous $ 7,609,311 Safety 4,177,572 $ 11,786,883 Miscellaneous Safety Pool Pool Proportion - June 30, 2016 MD 0.18854% 0.07160% Proportion - June 30, 2017 MD 0.18528% 0.07220% Change - Increase (Decrease) -0.00326% 0.00060% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 53 For the year ended June 30, 2018, the County recognized pension expense of $1,844,393. At June 30, 2018, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Of the total reported as deferred outflows of resources, $1,224,876 related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources to pensions will be recognized as pension expense as follows: Deferred Outflows of Deferred Inflows of Resources Resources Pension contributions subsequent to measurement date $ 1,224,876 $ - Net differences between expected and actual experience - (100,045) Changes of assumptions 1,884,878 (144,029) Net differences between actual and allocated employer contributions - (137,244) Adjustments due to differences in proportions 110,546 (54,101) Net differences between projected and actual earnings on plan investments 421,032 $ 3,641,332 $ (435,419) Year Ended June 30 2019 $ 398,832 2020 1,133,503 2021 697,468 2022 (248,766) 2023 - Thereafter - 1,981,037 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 54 Actuarial Assumptions The total pension liabilities in the June 30, 2018 actuarial valuations were determined using the following actuarial assumptions for all Plans: The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2016 valuation were based on the results of January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website. Discount Rate The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarial assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section. According to Paragraph 30 of Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.00 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15 percent. Using this lower discount rate has resulted in a higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. Valuation date June 30, 2016 Measurement date June 30, 2017 Actuarial cost method Entry-age Normal Cost Method Actuarial Assumptions: Discount rate 7.15% Inflation 2.75% Payroll growth 3.00% Projected salary increase Varies by entry age and service depending on age, service and type of employment Investment rate of return 7.00%, net of pension plan investment and administrative expenses, including inflation Mortality Derived using CalPERS' membership data for all funds ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 55 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. New Strategic Real Return Real Return Asset Class Allocation Years 1-10(1) Years 11+(2) Global Equity 47.00% 4.90% 5.38% Global Fixed Income 19.00% 0.80% 2.27% Inflation Sensitive 6.00% 0.60% 1.39% Private Equity 12.00% 6.60% 6.63% Real Estate 11.00% 2.80% 5.21% Infrastructure and Forestland 3.00% 3.90% 5.36% Liquidity 2.00% -0.40% -0.90% 100.00% An expected inflation of 2.5% used for this period. An expected inflation of 3.0% used for this period. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 56 Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the County’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan The County did not have an outstanding amount of contributions to the pension plan required for the year ended June 30, 2018. Note 9: Other Post-Employment Benefits (OPEB) Plan Description The County provides retiree healthcare benefits to qualifying employees retiring directly from the County on a pay-as-you-go basis. Benefits include medical, dental and vision plan coverage and the benefit level is determined by date of hire and length of service. Benefits are provided through the County of Alpine Retiree Healthcare plan, a single-employer defined benefit healthcare plan administered by the County. Retirees not yet eligible for Medicare supplement coverage receive the same coverage and the same cost sharing formula as active employees until age 65. After becoming eligible for Medicare, retirees and/or their dependents who wish to retain coverage must enroll in an available plan offered by AARP. The County pays a specific dollar amount toward the cost of retiree coverage and, depending on the date of employment, may also pay a portion of the coverage for the retiree’s spouse or eligible dependents. 1% Decrease 1% Increase (6.15%) Current Discount Rate(7.15%) (8.15%) Net Pension Liability Miscellaneous $ 11,691,078 $ 7,609,311 $ 4,228,718 Safety 6,313,623 4,177,572 2,431,458 Total $ 18,004,701 $ 11,786,883 $ 6,660,176 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 57 Employees Covered As of the June 30, 2017 actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB Plan: Contributions The OPEB Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the County and the bargaining units. The annual contribution is based on the contractually required payments. Currently, the County is responsible for all payments and is charging each department, based on budgeted full time equivalents positions, their proportionate share of the pay-as-you-go costs for postemployment benefits in fiscal year 2017-2018. For the fiscal year ended June 30, 2018, the County’s pay-as-you-go payments were $566,258. Net OPEB Liability The County’s net OPEB liability was measured as of June 30, 2017 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2016 that was rolled forward to determine the June 30, 2017 total OPEB liability, based on the following actuarial methods and assumptions: Active employees 83 Inactive employees entitled to but not yet receiving benefits - Inactive employees or beneficiaries currently receiving benefits 52 Total 135 Valuation date January 1, 2017 Measurement date June 30, 2017 Actuarial cost method Entry-Age Normal Asset Valuation Method1 Market Value of Assets Actuarial assumptions: Discount rate 3.13% Inflation 2.75% Payroll growth 3.25% Mortality MacLeod Watts Scale 2017 Applied Generationally Healthcare trend rate 5.0% - 8.0% Notes: 1 The Market Value of Assets is currently $0 as the Plan is not funded. Investment rate of return is not included as there are no assets in the Plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 58 Discount Rate The discount rate used to measure the total OPEB liability was 3.13%. The projection of cash flows used to determine the discount rate assumed that no future contributions are made to the OPEB Plan. The discount rate is a blended rate between the rate of return at 6.00% and 3.13%, the resulting rate of 3.13% is based upon the Bond Buyer 20-Bond GO index rate. The County is currently only funding its OPEB obligation on a pay-as-you-go cost basis. The County does not currently have a pre-funding policy or practice for contributing additional prefunding, therefore, the 3.13% discount rate was applied to all periods of projected benefit payments to determine the total OPEB liability. Changes in the OPEB Liability The changes in the net OPEB liability for the County’s OPEB Plan are as follows: Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the County if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2017: Increase (Decrease) Total OPEB Total Fiduciary Net Net OPEB Liability OPEB Liability (Asset) Balance at June 30, 2017 $ 12,078,081 $ - $ 12,078,081 Changes in the year: Service cost 373,651 373,651 Interest on total OPEB liability 326,822 326,822 Changes in benefit terms - - Changes in assumptions (664,620) (664,620) Differences between expected and actual - experience - - Benefit payments, including refunds of employee contributions (513,769) (513,769) - Contributions from the employer 513,769 (513,769) Contributions from employees - Net investment income - - Administrative expenses - - Other charges - Net changes (477,916) - (477,916) Balance at June 30, 2018 $ 11,600,165 $ - $ 11,600,165 1% Decrease Current Discount Rate 1% Increase (2.13%) (3.13%) (4.13%) Net OPEB Liability $ 13,163,428 $ 11,600,165 $ 10,315,429 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 59 Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the County if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2017: Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss: Net difference between projected and actual earnings on OPEB Plan investments are recognized over a five-year period, while all other amounts are recognized over the expected average remaining service lifetime (EARSL), 0.0 Years at June 30, 2017 measurement date. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2018, the County recognized OPEB expense of $604,430. As of fiscal year ended June 30, 2018, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: The $566,258 reported as deferred outflows of resources related to OPEB contributions subsequent to the June 30, 2017 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2019. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: 1% Decrease Current Healthcare 1% Increase Cost Trend Rates (8.00% to 5.00%) (8.00% to 5.00%) (8.00% to 5.00%) Net OPEB Liability $ 10,119,483 $ 11,600,165 $ 13,433,578 Deferred Outflows Deferred Inflows of Resources of Resources Change in assumptions $ $ 568,577 OPEB contibutions subsequent to the measurement date 566,258 Total $ 566,258 $ 568,577 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 60 Note 10: Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County participates in a joint powers agreement established in 1980 to provide coverage for workers’ compensation and general liability exposures and to pay for the administration of the program. The Joint Powers Agreement established for its members the Trindel Insurance Fund (Trindel). The agreement for the formation of Trindel provides that the system will be self-sustaining through member premiums and will reinsure through a commercial company for claims in excess of self-insured retention. Trindel retains a self-insured retention of $125,000 for workers’ compensation and $100,000 for general liability. Above the self-insured retention, excess insurance coverage is up to a limit of $25 million for both programs. Trindel Insurance Fund is classified as a claims-servicing or account pool, wherein the County retains the risk of loss and is considered self-insured with regard to liability coverage for general and property liability, workers compensation and medical malpractice. The County currently reports all of its risk management activities in its General Fund. Premiums due to Trindel are reported when incurred. Settled claims resulting from risks have not exceeded the commercial insurance coverage in any of the past fiscal years and there has not been a significant reduction in coverage in fiscal year 2017-2018. The County holds a deposit with Trindel Insurance from which claims are paid. At June 30, 2018, the balance of the deposit was $1,484,973. Each member of Trindel pays an annual premium to the insurance system which is evaluated each year based on the number of personnel, estimated payroll and an experience factor. Changes in the balance of claims liability during the fiscal years ended June 30, 2018 and 2017 were as follows: Year ending Deferred Outflows/ June 30, (Inflows) of Resources 2019 $ (96,043) 2020 (96,043) 2021 (96,043) 2022 (96,043) 2023 (96,043) Thereafter (88,362) Total $ (568,577) 2018 2017 Unpaid claims, beginning of year $ 753,615 $ 780,462 Current year claims (including incurred but not reported) 260,149 161,113 Claims payments and changes in estimates (286,691) (187,960) Unpaid claims, end of year $ 727,073 $ 753,615 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 61 Note 11: Commitments, Contingencies and Other Information Claims and Judgments The County has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. The State of California—Health and Human Services Agency, Department of Health Care Services has made a request for the return of unspent funds in the amount of $2,116,998 from the Mental Health Services Act Fund. The County has filed an appeal related to the request and is uncertain as to if the funds will be actually need to returned as requested by July, 1 2019. Litigation The County is a party to several claims and actions pending. None of these claims are reflected in these financial statements. Legal counsel believes that none of the pending claims or lawsuits, either separately or in the aggregate, will have a material financial impact on the financial statements. At June 30, 2018 the County had no ongoing construction commitments, however subsequently, on September 18, 2018, Alpine County entered into a contract with Thomas Haen Company Inc. for the construction of a new Behavioral Health Services Facility in the amount of $3,562,200. The new building will include office space for Behavioral Health Services of Alpine County. The contract will be paid from the Accumulated Capital Outlay Fund, with of the funding transfers coming from various Mental Health Services Act and Realignment funds. Note 12: Prior Period Adjustments The implementation of GASB Statement Number 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, requires a prior period adjustment to restate the beginning Net Position for Governmental Activities. Details of the restatement of beginning Net Position are as follow: Governmental Activities Prior Period Adjustments: Fund balance/net position, June 30, 2017 as previously reported $ 36,486,515 Adjustments: GASB 75 OPEB (10,049,091) Fund balance/net position, June 30, 2017 as restated 26,437,424 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2018 62 The Mental Health Fund became a major fund in the current year. Details of the restatement of beginning Fund Balance are as follows: Fund Statements Mental Other Health Governmental Fund balance/net position, June 30, 2017 as previously reported $ - $ 7,187,822 Adjustments: Mental Health Fund became a major fund, so segregated from Other Governmental Funds 64,679 (64,679) Fund balance/net position, June 30, 2017 as restated 64,679 7,123,143 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2018 63 County OPEB Plan Schedule of Changes in Net OPEB Liability and Related Ratios For the Measurement Period June 30, - Last 10 Years* 2017 Total OPEB Liability Service cost $ 373,651 Interest on total pension liability 326,822 Change in benefit terms - Changes of assumptions (664,620) Differences between expected and actual experience - Benefit payments, including refunds of employee contributions (513,769) Change in allocation - Net Change in total OPEB liability (477,916) Total OPEB Liability - beginning 12,078,081 Total OPEB Liability - ending $ 11,600,165 Plan Fiduciary Net Position Plan to plan resource movement - Contributions - employer $ 513,769 Contributions - employee - Net investment income - Benefit payments, including refunds of employee contributions (513,769) Administrative expense - Change in allocation - Net change in plan fiduciary net position - Plan Fiduciary Net Position - beginning - Plan Fiduciary Net Position - ending $ - Net OPEB liability - ending - $ 11,600,165 Plan fiduciary net position as a percentage of total OPEB liability 0.00% County's covered-employee payroll $ 4,919,627 Net OPEB liability as a percentage of covered-employee payroll 235.79% * Fiscal year 2017-18 (measurement date June 30, 2017) was the 1st year of implementation. Additional years will be presented as they become available. ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2018 64 County Pension Plan Schedule of Proportionate Share of the Net Pension Liability For the Measurement Period June 30, - Last 10 Years* * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. County Pension Plan Schedule of Contributions For the Fiscal Year Ended June 30,- Last 10 Years* * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. 2017 2016 2015 Proportion of the net pension liability 0.1185% 0.1193% 0.1247% Proportionate share of the net pension liability $ 10,258,121 $ 8,191,379 $ 7,756,690 Covered payroll $ 4,708,005 $ 4,386,486 $ 4,592,478 Proportionate share of the net pension liability as a percentage of covered employee payroll 217.89% 186.74% 168.90% Plan's fiduciary net position $ 19,769,328 $ 19,736,186 $ 20,796,946 Plan's fiduciary net position as a percentage of the total pension liability 75.11% 79.07% 79.37% NOTES TO THE SCHEDULES Changes in Benefit Terms - None Changes in Assumptions - None 2018 2017 2016 2015 Contractually required contribution (actuarially determined) $ 1,094,783 1 $ 1,045,383 1 $ 875,632 8 $ 965,036 9 Contributions in relation to the actuarially determined contributions (1,094,783) ( (1,045,383) ( (875,632) (965,036) Contribution defeciency (excess) $ - $ - $ - $ - Covered employee payroll $ 4,818,042 4 $ 4,708,005 4 $ 4,386,486 4 $ 4,592,478 4 Contributions as a percentage of covered employee payroll 22.72% 22.20% 19.96% 21.01% ---PAGE BREAK--- 6 COUNTY OF ALPINE Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2018 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 7,551,986 $ 7,551,986 $ 7,551,986 $ - $ RESOURCES (inflows): Taxes 5,576,452 5,576,452 6,256,608 680,156 Licenses and permits 24,155 24,155 29,266 5,111 Fines, forfeitures and penalties 333,000 333,000 164,947 (168,053) Use of money and property 37,454 37,454 91,079 53,625 Intergovernmental 872,300 894,300 1,041,051 146,751 Charges for services 1,913,738 1,913,738 1,355,628 (558,110) Other revenues 94,820 108,180 155,230 47,050 Transfers from other funds 2,815,671 2,752,611 1,002,972 (1,749,639) Amounts Available for Appropriation 19,219,576 19,191,876 17,648,767 (1,543,109) CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 371,612 396,112 393,808 2,304 County Administrative Officer 242,256 242,256 236,197 6,059 Personnel 207,633 217,633 155,489 62,144 Auditor-Controller 357,743 386,743 346,592 40,151 OMB 87 Central Services 237,084 247,184 232,621 14,563 General Central Services 33,464 33,464 32,609 855 Information Technology 350,007 350,007 288,623 61,384 Treasurer-Tax Collector 179,297 179,297 175,780 3,517 Assessor 353,120 368,120 359,670 8,450 Elections 27,304 28,804 23,765 5,039 Buildings & Grounds 732,802 787,802 659,183 128,619 BV Building & Grounds 81,318 81,318 78,892 2,426 Risk Management 858,178 858,178 127,942 730,236 Retiree Benefits 412,000 412,000 372,372 39,628 Legal Counsel 206,671 247,671 205,017 42,654 Contingency 300,000 133,575 - 133,575 Total General Government 4,950,489 4,970,164 3,688,560 1,281,604 Public protection: County Clerk 360,225 361,725 347,538 14,187 Recorder 121,314 121,314 109,758 11,556 Surveyor / Engineer 20,000 20,000 15,121 4,879 Grand Jury 16,249 16,249 10,369 5,880 District Attorney 314,652 314,652 300,498 14,154 Public Defender 57,000 57,000 56,521 479 continued ---PAGE BREAK--- 6 COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2018 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Sheriff / Coroner 2,957,389 2,898,666 2,826,826 71,840 Jail 55,000 55,000 31,248 23,752 Sheriff Grants 77,314 106,727 89,901 16,826 Communications 153,725 153,725 146,219 7,506 Probation 122,342 122,342 109,501 12,841 Bear Valley Fire Department 74,444 77,944 80,898 (2,954) East Slope Fire / EMS 289,478 289,478 254,082 35,396 Agricultural Commission 13,727 13,727 13,727 - Planning Department 152,341 152,341 144,836 7,505 Local Agency Formation 2,800 2,800 899 1,901 Total Public Protection 4,788,000 4,763,690 4,537,942 225,748 Health and sanitation: County Emergency Services 85,300 85,300 81,836 3,464 Bear Valley EMS 10,265 10,265 8,274 1,991 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 10,200 10,200 13,520 (3,320) Total Health and Sanitation 127,629 127,629 125,494 2,135 Public assistance: Community Development 532,028 532,028 523,208 8,820 Social Services Assistance 16,750 22,750 24,221 (1,471) General Relief 2,750 2,750 - 2,750 Total Public Assistance 551,528 557,528 547,429 10,099 Education: Superintendent of Schools 63,510 63,510 63,510 - Library 334,084 334,084 323,745 10,339 Total Education 397,594 397,594 387,255 10,339 Recreation and cultural services: Museum 43,173 43,173 41,347 1,826 Transfers to other funds: General Contribution 2,271,086 2,407,281 536,422 1,870,859 Total Charges to Appropriations 13,129,499 13,267,059 9,864,449 3,402,610 BUDGETARY FUND BALANCE, JUNE 30 6,090,077 $ 5,924,817 $ 7,784,318 $ 1,859,501 $ continued ---PAGE BREAK--- 6 COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2018 Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 17,648,767 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (7,551,986) Revenues from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes 194,803 A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes (531,799) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,002,972) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 8,756,813 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 9,864,449 $ Differences - budget to GAAP: Expenditures from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as charges to appropriations for budgetary purposes 105,893 The County does not include the deposit held by the claims administrator for budgetary purposes (227,829) A87 cost reimbursement reported as a reduction of expenditures for financial reporting purposes but is not budgeted as a charge to appropriations for budgetary purposes (531,799) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (536,422) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 8,674,292 $ ---PAGE BREAK--- 6 COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2018 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 1,436,738 $ 1,436,738 $ 1,436,738 $ - $ RESOURCES (inflows): Licenses and permits 600 600 1,645 1,045 Fines, forfeitures and penalties 700 700 1,463 763 Use of money and property 4,500 4,500 15,934 11,434 Intergovernmental 1,599,512 1,544,512 1,292,057 (252,455) Charges for services 374,100 369,100 507,535 138,435 Other revenues 325 325 1,489 1,164 Transfers from other funds 151,258 150,000 130,634 (19,366) Amounts Available for Appropriation 3,567,733 3,506,475 3,408,375 (98,100) CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 2,697,059 2,642,059 1,888,727 753,332 Transfers to other funds 79,608 226,618 69,334 157,284 Total Charges to Appropriations 2,776,667 2,868,677 1,958,061 910,616 BUDGETARY FUND BALANCE, JUNE 30 791,066 $ 637,798 $ 1,450,314 $ 812,516 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 3,408,375 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (1,436,738) Equipment rental revenue is generated intrafund and reported as a budgetary resource but eliminated for financial reporting purposes and not considered current-year revenue (133,240) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 1,686,883 $ ---PAGE BREAK--- 6 COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2018 Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,958,061 Differences - budget to GAAP: Equipment rental expenditures is generated intrafund and reported as expenditures for budgetary purposes but eliminated for financial reporting purposes and not considered current-year expenditures (133,240) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (69,334) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,755,487 $ ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act For the Year Ended June 30, 2018 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 6,326,380 $ 6,326,380 $ 6,326,380 $ - $ RESOURCES (inflows): Use of money and property 28,471 28,471 65,897 37,426 Intergovernmental 1,485,000 1,485,000 1,515,977 30,977 Other revenues - - - - Amounts Available for Appropriation 7,839,851 7,839,851 7,908,254 68,403 CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,999,749 1,999,749 1,522,910 476,839 Transfers out to other funds 230,000 230,000 230,000 - Total Charges to Appropriations 2,229,749 2,229,749 1,752,910 476,839 BUDGETARY FUND BALANCE, JUNE 30 5,610,102 $ 5,610,102 $ 6,155,344 $ 545,242 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 7,908,254 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (6,326,380) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,581,874 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,752,910 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (230,000) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,522,910 $ ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund For the Year Ended June 30, 2018 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 8,784,755 $ 8,784,755 $ 8,784,755 $ - $ RESOURCES (inflows): Use of money and property 29,561 29,561 101,754 72,193 Intergovernmental 1,839,925 1,839,925 2,306,751 466,826 Transfer in 244,000 244,000 100,001 (143,999) Amounts Available for Appropriation 10,898,241 10,898,241 11,293,261 395,020 CHARGES TO APPROPRIATIONS (outflows) Public protection 135,128 135,128 102,168 32,960 Transfers out to other funds 729,181 729,181 554,169 175,012 Total Charges to Appropriations 864,309 864,309 656,337 207,972 BUDGETARY FUND BALANCE, JUNE 30 10,033,932 $ 10,033,932 $ 10,636,924 $ 602,992 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 11,293,261 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (8,784,755) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (100,001) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 2,408,505 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 656,337 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (554,169) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 102,168 $ ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health For the Year Ended June 30, 2018 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 64,679 $ 64,679 $ 64,679 $ - $ RESOURCES (inflows): Use of money and property 450 450 1,284 834 Intergovernmental 186,591 186,591 233,505 46,914 Other revenues - - - - Transfers in 50,000 50,000 50,000 - Amounts Available for Appropriation 301,720 301,720 349,468 47,748 CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 279,278 279,278 546,840 (267,562) Transfers out to other funds - - - - Total Charges to Appropriations 279,278 279,278 546,840 (267,562) BUDGETARY FUND BALANCE, JUNE 30 22,442 $ 22,442 $ (197,372) $ (219,814) $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 349,468 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (64,679) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (50,000) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 234,789 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 546,840 Differences - budget to GAAP: - Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 546,840 $ ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information For the Year Ended June 30, 2018 7 BUDGETARY BASIS OF ACCOUNTING In accordance with the provisions of Sections 29000 and 29144, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year. A tentative budget approved no later than June 30 of each year establishes the legal authority for county spending in the following fiscal year until a final budget is adopted on or before October 2nd. Prior to adoption of the final budget, a public hearing is held to receive comments prior to adoption. From the effective date of the budget, which is adopted and controlled at the departmental level, the amounts stated therein as proposed expenditures become appropriations to the various County departments. However, the legal level of control is the fund level. The Board of Supervisors may amend the budget by resolution during the fiscal year. Department heads may, upon approval of the Treasurer- Tax Collector-Auditor Controller and the County Administrative Officer, make transfers from one object or purpose to another within the same budget unit. All other budget amendments must be approved by the County Board of Supervisors. It is the final revised budget that is presented in the required supplementary information section of this financial report. Appropriations lapse at year end. Budgets are adopted for the General Fund, all special revenue funds, permanent fund and capital projects funds. Accounting principles applied for purposes of developing data on a budgetary basis are materially the same as those used to present financial statements in conformity with GAAP, except that transfers are regarded as inflows of resources for budgetary purposes and not revenues for GAAP financial statement presentation purposes and transfers out are considered outflows of resources for budgetary purposes but not expenditures for GAAP financial statement presentation purposes. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION Combining Fund Statements ---PAGE BREAK--- 7 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2018 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 6,283,026 $ 526,766 $ 714,392 $ - $ 7,524,184 $ Accounts receivable 51,586 - - - 51,586 Taxes receivable 24,958 - - - 24,958 Due from other governments 383,347 - - - 383,347 Interest receivable 27,850 2,144 2,132 - 32,126 Due from other funds 211,304 - - - 211,304 Advance to other funds 2,800 - - - 2,800 Prepaid expenses 3,973 - - - 3,973 Total Assets 6,988,844 $ 528,910 $ 716,524 $ - $ 8,234,278 $ LIABILITIES Accounts payable 141,438 $ - $ 35,463 $ - $ 176,901 $ Accrued salaries and benefits 42,192 - - - 42,192 Due to other funds 62,949 - - - 62,949 Advance from other funds 32,800 - - - 32,800 Unearned revenues 21,834 - - - 21,834 Total Liabilities 301,213 - 35,463 - 336,676 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 370,024 - - - 370,024 FUND BALANCES Nonspendable 6,773 473,691 - - 480,464 Restricted 5,343,232 - 337,624 - 5,680,856 Committed 1,109,163 - 127,344 - 1,236,507 Assigned - 55,219 216,093 - 271,312 Unassigned (141,561) - - - (141,561) Total Fund Balances 6,317,607 528,910 681,061 - 7,527,578 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,988,844 $ 528,910 $ 716,524 $ - $ 8,234,278 $ ---PAGE BREAK--- 7 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2018 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 329,980 $ - $ - $ - $ 329,980 $ Licenses and permits 86,954 - - - 86,954 Fines, forfeitures and penalties 1,261 - - - 1,261 Use of money and property 78,979 5,331 35,493 - 119,803 Intergovernmental 3,500,184 - - - 3,500,184 Charges for services 529,671 - - - 529,671 Other revenues 143,912 73,691 - - 217,603 Total Revenues 4,670,941 79,022 35,493 - 4,785,456 EXPENDITURES Current: General government 60,932 4,439 - - 65,371 Public protection 752,085 - - - 752,085 Public ways and facilities 456,939 - - - 456,939 Health and sanitation 1,272,457 - - - 1,272,457 Public assistance 1,084,380 - - - 1,084,380 Education - - - - - Capital outlay 62,483 - 713,699 - 776,182 Debt service: Principal - - - 75,327 75,327 Interest and issuance cost - - - 36,969 36,969 Total Expenditures 3,689,276 4,439 713,699 112,296 4,519,710 Excess (Deficiency) of Revenues Over (Under) Expenditures 981,665 74,583 (678,206) (112,296) 265,746 OTHER FINANCING SOURCES AND USES Gain/(loss) on sale of capital assets 3,880 - - - 3,880 Transfers in 497,796 - 576,707 112,296 1,186,799 Transfers out (1,051,990) - - - (1,051,990) Total Other Financing Sources (Uses) (550,314) - 576,707 112,296 138,689 NET CHANGES IN FUND BALANCES 431,351 74,583 (101,499) - 404,435 Fund Balances, Beginning of Year (Restated) 5,886,256 454,327 782,560 - 7,123,143 FUND BALANCES, END OF YEAR 6,317,607 $ 528,910 $ 681,061 $ - $ 7,527,578 $ ---PAGE BREAK--- 7 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2018 State STPUD Public Environmental Drug and Mitigation Health Health Alcohol ASSETS Cash and investments 1,104,701 $ 24,197 $ 18,759 $ 454,280 $ Accounts receivable - - 850 - Taxes receivable - - - - Due from other governments - 120,047 - - Interest receivable 4,462 41 63 1,107 Due from other funds - 1,660 - 130,985 Advance to other funds - - - - Prepaid expenses - 113 - - Total Assets 1,109,163 $ 146,058 $ 19,672 $ 586,372 $ LIABILITIES Accounts payable - $ 6,546 $ 11,461 $ 5,616 $ Accrued salaries and benefits - 9,586 321 6,540 Due to other funds - 2,622 - 2,250 Advance from other funds - - - - Unearned revenues - - 21,834 - Total Liabilities - 18,754 33,616 14,406 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 117,106 - - FUND BALANCES Nonspendable - 113 - - Restricted - 10,085 - 571,966 Committed 1,109,163 - - - Unassigned - - (13,944) - Total Fund Balances 1,109,163 10,198 (13,944) 571,966 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,109,163 $ 146,058 $ 19,672 $ 586,372 $ continued ---PAGE BREAK--- 7 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 Prop 36 Social One-Stop SACPA Services Services Tobacco ASSETS Cash and investments - $ 161,771 $ 9,487 $ 357,072 $ Accounts receivable - 394 - - Taxes receivable - - - - Due from other governments - 142,033 - - Interest receivable - 985 43 1,169 Due from other funds - 75,099 - 3,560 Advance to other funds - - - - Prepaid expenses - 2,985 - - Total Assets - $ 383,267 $ 9,530 $ 361,801 $ LIABILITIES Accounts payable - $ 39,886 $ - $ 12,460 $ Accrued salaries and benefits - 13,479 - 908 Due to other funds - 710 - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities - 54,075 - 13,368 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 142,033 - - FUND BALANCES Nonspendable - 2,985 - - Restricted - 184,174 9,530 348,433 Committed - - - - Unassigned - - - - Total Fund Balances - 187,159 9,530 348,433 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 383,267 $ 9,530 $ 361,801 $ continued ---PAGE BREAK--- 7 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 Water Fish and Rights Game Building Airport ASSETS Cash and investments - $ 61,166 $ 14,284 $ 41,236 $ Accounts receivable - 48 294 - Taxes receivable - - - - Due from other governments - - - - Interest receivable - 262 (10) 170 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - 215 - Total Assets - $ 61,476 $ 14,783 $ 41,406 $ LIABILITIES Accounts payable - $ 600 $ 440 $ - $ Accrued salaries and benefits - - 3,967 - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities - 600 4,407 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - 215 - Restricted - 60,876 10,161 41,406 Committed - - - - Unassigned - - - - Total Fund Balances - 60,876 10,376 41,406 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 61,476 $ 14,783 $ 41,406 $ continued ---PAGE BREAK--- 7 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund ASSETS Cash and investments 15,296 $ 3,489 $ 162,951 $ 1,146,616 $ Accounts receivable - - - 50,000 Taxes receivable - - - - Due from other governments - 17,509 17,645 1,520 Interest receivable 62 17 667 4,689 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 15,358 $ 21,015 $ 181,263 $ 1,202,825 $ LIABILITIES Accounts payable - $ 476 $ 14,605 $ 13 $ Accrued salaries and benefits - 517 597 780 Due to other funds - - - - Advance from other funds - 30,000 - - Unearned revenues - - - - Total Liabilities - 30,993 15,202 793 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 17,509 - 1,520 FUND BALANCES Nonspendable - - - - Restricted 15,358 - 166,061 1,200,512 Committed - - - - Unassigned - (27,487) - - Total Fund Balances 15,358 (27,487) 166,061 1,200,512 Total Liabilities, Deferred Inflows of Resources and Fund Balances 15,358 $ 21,015 $ 181,263 $ 1,202,825 $ continued ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants ASSETS Cash and investments - $ 282,351 $ - $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable - 1,294 - - Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets - $ 283,645 $ - $ - $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 790 - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 790 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 283,645 - - Committed - - - - Unassigned (790) - - - Total Fund Balances (790) 283,645 - - Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 283,645 $ - $ - $ continued ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 State Law Assessor's Recorder's OES Enforcement Special Special Grants AB443 Revenue Fund Revenue Fund ASSETS Cash and investments - $ 759,359 $ 32,645 $ 75,290 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable - 6,380 132 303 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets - $ 765,739 $ 32,777 $ 75,593 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities - - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 765,739 32,777 75,593 Committed - - - - Unassigned - - - - Total Fund Balances - 765,739 32,777 75,593 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 765,739 $ 32,777 $ 75,593 $ continued ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste ASSETS Cash and investments 1,546 $ 734,698 $ 337,915 $ 32,098 $ Accounts receivable - - - - Taxes receivable - 15,255 - - Due from other governments - - - - Interest receivable 6 2,844 1,305 113 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 1,552 $ 752,797 $ 339,220 $ 32,211 $ LIABILITIES Accounts payable - $ 400 $ - $ - $ Accrued salaries and benefits - - 1,792 - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities - 400 1,792 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 14,835 - - FUND BALANCES Nonspendable - - - - Restricted 1,552 737,562 337,428 32,211 Committed - - - - Unassigned - - - - Total Fund Balances 1,552 737,562 337,428 32,211 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,552 $ 752,797 $ 339,220 $ 32,211 $ continued ---PAGE BREAK--- 8 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs ASSETS Cash and investments - $ 300,635 $ 25,649 $ - $ Accounts receivable - - - - Taxes receivable - 7,252 2,451 - Due from other governments 53,499 7,572 543 - Interest receivable (33) 1,208 96 - Due from other funds - - - - Advance to other funds 2,800 - - - Prepaid expenses - - - - Total Assets 56,266 $ 316,667 $ 28,739 $ - $ LIABILITIES Accounts payable 20,001 $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 39,328 - - 30 Advance from other funds - 2,800 - - Unearned revenues - - - - Total Liabilities 59,329 2,800 - 30 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 53,499 - 543 - FUND BALANCES Nonspendable 2,800 - - - Restricted - 313,867 28,196 - Committed - - - - Unassigned (59,362) - - (30) Total Fund Balances (56,562) 313,867 28,196 (30) Total Liabilities, Deferred Inflows of Resources and Fund Balances 56,266 $ 316,667 $ 28,739 $ - $ continued ---PAGE BREAK--- 8 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 Title III SNC Fire Secure Rural Court Prop. 84 Protection Schools Services Grant ASSETS Cash and investments 32,882 $ 62,574 $ 119 $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 130 251 58 (81) Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 33,012 $ 62,825 $ 177 $ (81) $ LIABILITIES Accounts payable 199 $ - $ - $ 7,913 $ Accrued salaries and benefits - - - - Due to other funds - - - 16,261 Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 199 - - 24,174 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 32,813 62,825 177 - Committed - - - - Unassigned - - - (24,255) Total Fund Balances 32,813 62,825 177 (24,255) Total Liabilities, Deferred Inflows of Resources and Fund Balances 33,012 $ 62,825 $ 177 $ (81) $ continued ---PAGE BREAK--- 8 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 Woodstove Public Behavioral Public Replacement Health Health Safety Program Misc. Grants Misc. Grants Misc. Grants ASSETS Cash and investments 4,860 $ 9,695 $ 19 $ 48 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 22,979 - - Interest receivable 20 97 - - Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - 660 - - Total Assets 4,880 $ 33,431 $ 19 $ 48 $ LIABILITIES Accounts payable - $ 20,822 $ - $ - $ Accrued salaries and benefits - 3,705 - - Due to other funds - 958 - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities - 25,485 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 22,979 - - FUND BALANCES Nonspendable - 660 - - Restricted 4,880 - 19 48 Committed - - - - Unassigned - (15,693) - - Total Fund Balances 4,880 (15,033) 19 48 Total Liabilities, Deferred Inflows of Resources and Fund Balances 4,880 $ 33,431 $ 19 $ 48 $ continued ---PAGE BREAK--- 8 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2018 Other Miscellaneous Grants Total ASSETS Cash and investments 15,338 $ 6,283,026 $ Accounts receivable - 51,586 Taxes receivable - 24,958 Due from other governments - 383,347 Interest receivable - 27,850 Due from other funds - 211,304 Advance to other funds - 2,800 Prepaid expenses - 3,973 Total Assets 15,338 $ 6,988,844 $ LIABILITIES Accounts payable - $ 141,438 $ Accrued salaries and benefits - 42,192 Due to other funds - 62,949 Advance from other funds - 32,800 Unearned revenues - 21,834 Total Liabilities - 301,213 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 370,024 FUND BALANCES Nonspendable - 6,773 Restricted 15,338 5,343,232 Committed - 1,109,163 Unassigned - (141,561) Total Fund Balances 15,338 6,317,607 Total Liabilities, Deferred Inflows of Resources and Fund Balances 15,338 $ 6,988,844 $ ---PAGE BREAK--- 8 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 State STPUD Public Environmental Drug and Mitigation Health Health Alcohol REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 11,644 10,776 291 2,296 Intergovernmental - 186,512 38,887 470,906 Charges for services 27,501 36,462 21,390 - Other revenues 114,600 74 1,124 - Total Revenues 153,745 233,824 61,692 473,202 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - 418,302 104,883 244,991 Public assistance - - - - Capital outlay - 2,930 - - Total Expenditures - 421,232 104,883 244,991 Excess (Deficiency) of Revenues Over (Under) Expenditures 153,745 (187,408) (43,191) 228,211 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - 108,604 - 11,587 Transfers out (112,296) - - - Total Other Financing Sources (Uses) (112,296) 108,604 - 11,587 NET CHANGES IN FUND BALANCES 41,449 (78,804) (43,191) 239,798 Fund Balances, Beginning of Year 1,067,714 89,002 29,247 332,168 FUND BALANCES, END OF YEAR 1,109,163 $ 10,198 $ (13,944) $ 571,966 $ continued ---PAGE BREAK--- 8 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 Prop 36 Social One-Stop SACPA Services Services Tobacco REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property - 7,816 155 1,190 Intergovernmental - 661,252 8,118 381,540 Charges for services - - - - Other revenues - 5,604 - - Total Revenues - 674,672 8,273 382,730 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - - - 119,423 Public assistance - 1,068,872 15,508 - Capital outlay - 53,107 - 1,406 Total Expenditures - 1,121,979 15,508 120,829 Excess (Deficiency) of Revenues Over (Under) Expenditures - (447,307) (7,235) 261,901 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - 3,880 - - Transfers in - 282,153 - 3,560 Transfers out - (101,734) - - Total Other Financing Sources (Uses) - 184,299 - 3,560 NET CHANGES IN FUND BALANCES - (263,008) (7,235) 265,461 Fund Balances, Beginning of Year - 450,167 16,765 82,972 FUND BALANCES, END OF YEAR - $ 187,159 $ 9,530 $ 348,433 $ continued ---PAGE BREAK--- 8 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 Water Fish and Rights Game Building Airport REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - 86,954 - Fines, forfeitures and penalties - 1,091 - - Use of money and property - 302 (23) 402 Intergovernmental - 97 - 10,000 Charges for services - 56,250 37,079 - Other revenues - 2,000 269 - Total Revenues - 59,740 124,279 10,402 EXPENDITURES Current: General government - - - - Public protection - 47,775 173,750 - Public ways and facilities - - - 2,382 Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 47,775 173,750 2,382 Excess (Deficiency) of Revenues Over (Under) Expenditures - 11,965 (49,471) 8,020 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - 4,320 56,081 - Transfers out - (4,320) - - Total Other Financing Sources (Uses) - - 56,081 - NET CHANGES IN FUND BALANCES - 11,965 6,610 8,020 Fund Balances, Beginning of Year - 48,911 3,766 33,386 FUND BALANCES, END OF YEAR - $ 60,876 $ 10,376 $ 41,406 $ continued ---PAGE BREAK---  COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 160 (129) 1,773 8,722 Intergovernmental - 80,800 117,000 201,254 Charges for services - - - - Other revenues - - - - Total Revenues 160 80,671 118,773 209,976 EXPENDITURES Current: General government - - - - Public protection - 69,312 107,290 48,597 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 69,312 107,290 48,597 Excess (Deficiency) of Revenues Over (Under) Expenditures 160 11,359 11,483 161,379 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out - - (4,980) (11,620) Total Other Financing Sources (Uses) - - (4,980) (11,620) NET CHANGES IN FUND BALANCES 160 11,359 6,503 149,759 Fund Balances, Beginning of Year 15,198 (38,846) 159,558 1,050,753 FUND BALANCES, END OF YEAR 15,358 $ (27,487) $ 166,061 $ 1,200,512 $ continued ---PAGE BREAK---  COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 1 3,509 - - Intergovernmental - 123,060 - - Charges for services - - - - Other revenues - - - - Total Revenues 1 126,569 - - EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 1 126,569 - - OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out - (125,000) - - Total Other Financing Sources (Uses) - (125,000) - - NET CHANGES IN FUND BALANCES 1 1,569 - - Fund Balances, Beginning of Year (791) 282,076 - - FUND BALANCES, END OF YEAR (790) $ 283,645 $ - $ - $ continued ---PAGE BREAK---  COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 State Law OES Enforcement Assessor's Recorder's FEMA AB443 Trust Trust REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property - 14,928 324 763 Intergovernmental - 500,000 - - Charges for services - - - 472 Other revenues - - 3,131 4,309 Total Revenues - 514,928 3,455 5,544 EXPENDITURES Current: General government - - 932 - Public protection - 1,038 - 5,942 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 1,038 932 5,942 Excess (Deficiency) of Revenues Over (Under) Expenditures - 513,890 2,523 (398) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out - (484,992) - - Total Other Financing Sources (Uses) - (484,992) - - NET CHANGES IN FUND BALANCES - 28,898 2,523 (398) Fund Balances, Beginning of Year - 736,841 30,254 75,991 FUND BALANCES, END OF YEAR - $ 765,739 $ 32,777 $ 75,593 $ continued ---PAGE BREAK--- 9 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste REVENUES Taxes - $ 269,980 $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - 170 - - Use of money and property 21 7,034 2,882 227 Intergovernmental - 360 - - Charges for services - - 292,839 57,678 Other revenues - - - - Total Revenues 21 277,544 295,721 57,905 EXPENDITURES Current: General government - - - - Public protection 899 - 67,491 - Public ways and facilities - 176,859 - - Health and sanitation - - - 62,160 Public assistance - - - - Capital outlay - - 5,040 - Total Expenditures 899 176,859 72,531 62,160 Excess (Deficiency) of Revenues Over (Under) Expenditures (878) 100,685 223,190 (4,255) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - 1,000 667 2,000 Transfers out - - (193,980) - Total Other Financing Sources (Uses) - 1,000 (193,313) 2,000 NET CHANGES IN FUND BALANCES (878) 101,685 29,877 (2,255) Fund Balances, Beginning of Year 2,430 635,877 307,551 34,466 FUND BALANCES, END OF YEAR 1,552 $ 737,562 $ 337,428 $ 32,211 $ continued ---PAGE BREAK--- 9 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs REVENUES Taxes - $ - $ - $ 60,000 $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (203) 2,871 209 1 Intergovernmental 120,772 104,545 8,813 - Charges for services - - - - Other revenues - - - - Total Revenues 120,569 107,416 9,022 60,001 EXPENDITURES Current: General government - - - 60,000 Public protection - - - - Public ways and facilities 172,698 105,000 - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 172,698 105,000 - 60,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (52,129) 2,416 9,022 1 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGES IN FUND BALANCES (52,129) 2,416 9,022 1 Fund Balances, Beginning of Year (4,433) 311,451 19,174 (31) FUND BALANCES, END OF YEAR (56,562) $ 313,867 $ 28,196 $ (30) $ continued ---PAGE BREAK--- 9 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 Title III SNC Fire Secure Rural Court Prop. 84 Protection Schools Services Grant REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 291 551 184 (831) Intergovernmental - 27,016 - 149,083 Charges for services - - - - Other revenues 12,801 - - - Total Revenues 13,092 27,567 184 148,252 EXPENDITURES Current: General government - - - - Public protection 1,269 22,853 28,607 165,580 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 1,269 22,853 28,607 165,580 Excess (Deficiency) of Revenues Over (Under) Expenditures 11,823 4,714 (28,423) (17,328) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in (667) - 28,491 - Transfers out - - - - Total Other Financing Sources (Uses) (667) - 28,491 - NET CHANGES IN FUND BALANCES 11,156 4,714 68 (17,328) Fund Balances, Beginning of Year 21,657 58,111 109 (6,927) FUND BALANCES, END OF YEAR 32,813 $ 62,825 $ 177 $ (24,255) $ continued ---PAGE BREAK--- 9 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 Woodstove Pubic Behavioral Public Replacement Health Health Safety Program Misc. Grants Misc. Grants Misc. Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 99 778 - - Intergovernmental - 305,776 - - Charges for services - - - - Other revenues - - - - Total Revenues 99 306,554 - - EXPENDITURES Current: General government - - - - Public protection 7,077 - - - Public ways and facilities - - - - Health and sanitation - 322,698 - - Public assistance - - - - Capital outlay - - - - Total Expenditures 7,077 322,698 - - Excess (Deficiency) of Revenues Over (Under) Expenditures (6,978) (16,144) - - OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out - (13,068) - - Total Other Financing Sources (Uses) - (13,068) - - NET CHANGES IN FUND BALANCES (6,978) (29,212) - - Fund Balances, Beginning of Year 11,858 14,179 19 48 FUND BALANCES, END OF YEAR 4,880 $ (15,033) $ 19 $ 48 $ continued ---PAGE BREAK--- 9 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 Other Miscellaneous Grants Total REVENUES Taxes - $ 329,980 $ Licenses and permits - 86,954 Fines, forfeitures and penalties - 1,261 Use of money and property (35) 78,979 Intergovernmental 4,393 3,500,184 Charges for services - 529,671 Other revenues - 143,912 Total Revenues 4,358 4,670,941 EXPENDITURES Current: General government - 60,932 Public protection 4,605 752,085 Public ways and facilities - 456,939 Health and sanitation - 1,272,457 Public assistance - 1,084,380 Capital outlay - 62,483 Total Expenditures 4,605 3,689,276 Excess (Deficiency) of Revenues Over (Under) Expenditures (247) 981,665 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - 3,880 Transfers in - 497,796 Transfers out - (1,051,990) Total Other Financing Sources (Uses) - (550,314) NET CHANGES IN FUND BALANCES (247) 431,351 Fund Balances, Beginning of Year 15,585 5,886,256 FUND BALANCES, END OF YEAR 15,338 $ 6,317,607 $ ---PAGE BREAK--- 9 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2018 Leviathan Accumulated Markleeville Peak Capital Pipeline Vehicle Communications Outlay Prop 50 Grant Replacement Tower ASSETS Cash and investments 147,389 $ - $ 101,418 $ 70,642 $ Interest receivable - - 410 286 Total Assets 147,389 $ - $ 101,828 $ 70,928 $ LIABILITIES Accounts payable 32,955 $ - $ 169 $ - $ Total Liabilities 32,955 - 169 - FUND BALANCES Restricted - - - 70,928 Committed - - - - Assigned 114,434 - 101,659 - Unassigned - - - - Total Fund Balances 114,434 - 101,659 70,928 Total Liabilities, Deferred Inflows of Resources and Fund Balances 147,389 $ - $ 101,828 $ 70,928 $ continued ---PAGE BREAK--- 9 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2018 Inter Alpine Communications MHSA County Capital Capital Government Maintenance Facility Center Total ASSETS Cash and investments 126,836 $ 268,107 $ - $ 714,392 $ Interest receivable 508 928 - 2,132 Total Assets 127,344 $ 269,035 $ - $ 716,524 $ LIABILITIES Accounts payable - $ 2,339 $ - $ 35,463 $ Total Liabilities - 2,339 - 35,463 Fund Balances: Restricted - 266,696 - 337,624 Committed 127,344 - - 127,344 Assigned - - - 216,093 Unassigned - - - - Total Fund Balances 127,344 266,696 - 681,061 Total Liabilities, Deferred Inflows of Resources and Fund Balances 127,344 $ 269,035 $ - $ 716,524 $ ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended June 30, 2018 Leviathan Accumulated Markleeville Peak Capital Pipeline Vehicle Communications Outlay Prop 50 Grant Replacement Tower REVENUES Use of money and property (348) $ - $ 1,536 $ 737 $ Other revenues - - - - Total Revenues (348) - 1,536 737 EXPENDITURES Capital outlay 342,896 - 101,415 - Total Expenditures 342,896 - 101,415 - Excess (Deficiency) of Revenues Over (Under) Expenditures (343,244) - (99,879) 737 OTHER FINANCING SOURCES (USES) Transfers in 328,474 - 18,233 - Total Other Financing Sources (Uses) 328,474 - 18,233 - NET CHANGES IN FUND BALANCES (14,770) - (81,646) 737 Fund Balances, Beginning of Year, as restated 129,204 - 183,305 70,191 FUND BALANCES, END OF YEAR 114,434 $ - $ 101,659 $ 70,928 $ continued ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Capital Projects Funds For the Year Ended June 30, 2018 Inter Alpine Communications MHSA County Capital Capital Government Maintenance Facility Center Total REVENUES Use of money and property 31,220 $ 2,348 $ - $ 35,493 $ Other revenues - - - - Total Revenues 31,220 2,348 - 35,493 EXPENDITURES Capital outlay 29,751 239,637 - 713,699 Total Expenditures 29,751 239,637 - 713,699 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,469 (237,289) - (678,206) OTHER FINANCING SOURCES (USES) Transfers in - 230,000 - 576,707 Total Other Financing Sources (Uses) - 230,000 - 576,707 NET CHANGES IN FUND BALANCES 1,469 (7,289) - (101,499) Fund Balances, Beginning of Year, as restated 125,875 273,985 - 782,560 FUND BALANCES, END OF YEAR 127,344 $ 266,696 $ - $ 681,061 $