Document alpinecountyca_gov_doc_3ca6b40925

COUNTY OF ALPINE, CALIFORNIA ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2016 ---PAGE BREAK--- ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Independent Auditor’s Report 1-3 Management’s Discussion and Analysis (Required Supplementary Information) 4-17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements: Governmental Funds: Balance Sheet 20 Reconciliation of the Balance Sheet to the Statement of Net Position 21 Statement of Revenues, Expenditures and Changes in Fund Balances 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 23 Proprietary Funds: Statement of Net Position 24 Statement of Revenues, Expenses and Changes in Fund Net Position 25 Statement of Cash Flows 26 Fiduciary Funds: Statement of Fiduciary Net Position 27 Statement of Changes in Fiduciary Net Position 28 Notes to the Basic Financial Statements 29-63 Required Supplementary Information: Schedule of Funding Progress – County Postemployment Healthcare Plan 64 County Pension Plans – Schedule of Proportionate Share of the Net Pension Liability 65 County Pension Plans – Schedule of Contributions 66 County Pension Plans – Notes to the County Pension Plans 67-68 Budgetary Comparison Schedules: General Fund 69-71 Road Fund 72-73 Mental Health Services Act 74 Realignment Fund 75 Note to Required Supplementary Information 76 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Balance Sheet 77 Statement of Revenues, Expenditures and Changes in Fund Balances 78 Nonmajor Special Revenue Funds: Combining Balance Sheet 79-89 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 90-100 Nonmajor Capital Projects Funds: Combining Balance Sheet 101-102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 103-104 ---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 aggregate discretely presented component units, 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, 2016, 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 represent 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. 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 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. ---PAGE BREAK--- 2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based 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, each major fund, and the aggregate remaining fund information of the County of Alpine, California, as of June 30, 2016, 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, Schedule of Funding Progress – Retiree Healthcare Plan on page 64, County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability on page 65, County Pension Plan - Schedule of Contributions on page 66, Notes to County Pension Plans on pages 67-68, and Budgetary Comparison Schedules on pages 69-75, 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2017, on our consideration of the County’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. ---PAGE BREAK--- 3 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 30, 2017 ---PAGE BREAK--- ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 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, 2016. 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 • 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 $34,871,984 (net position). Unrestricted net position which normally is discretionary and available to meet ongoing obligations to citizens and creditors was deficit by $1,946,664. $21,124,223 is restricted and must be used only for specific purposes and $15,694,425 is invested in capital assets, net of related debt. • As of June 30, 2016, the County’s governmental funds reported combined fund balances of $28,949,106, an increase of $1,875,713 because current year revenues exceeded current year expenditures. • Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 93.92% of ending fund balance. Of this amount, $20,404,420 is restricted by law or externally imposed requirements, $1,133,263 is committed for specific purposes and $3,585,948 is assigned for specific purposes based on the intent of the Board of Supervisors, including $950,000 set aside as the County’s general reserve for emergencies. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $2,283,661, or 28.80% of total General Fund expenditures, is available for spending towards operations in subsequent years. • The County’s capital asset balances decreased by $333,163 or less than 2% during the current fiscal year. The decrease results from depreciation of $1,251,872 and offset by new purchases of $377,442 and construction additions of $541,265. Project costs of $54,083 were removed from construction in process because projects were completed during the year. • The County’s long-term liabilities increased by $255,387 or 2.23% during the current fiscal year. Increases of $108,628 in net pension liability, $104,278 in other post-employment benefits (OPEB) liability, $71,602 in the claims liability and $40,811 in compensated absences were offset by a decrease of $69,932 in the capital lease. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 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, 2016 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, and the Realignment 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, 2016 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, 2016 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary of Net Position As of June 30, 2015 and 2016 (in thousands) Governmental Activities Business-Type Activities Total 2016 2015 2016 2015 2016 2015 Assets: Current and other assets $ 30,905 $ 28,956 $ 80 $ 31 $ 30,985 $ 28,987 Capital assets, net 16,696 17,009 75 96 16,771 17,105 Total assets 47,601 45,965 155 127 47,756 46,092 Deferred Outflows 1,108 1,050 6 3 1,114 1,053 Liabilities: Current and other liabilities 1,098 1,060 108 71 1,206 1,131 Long-term liabilities 11,667 11,420 37 28 11,704 11,448 Total liabilities 12,765 12,480 145 99 12,910 12,579 Deferred Inflows 1,088 2,135 - 9 1,088 2,144 Net Position: Net Investment in capital assets 15,619 15,862 75 96 15,694 15,958 Restricted net position 21,124 19,726 - - 21,124 19,726 Unrestricted net position (1,887) (3,188) (59) (74) (1,946) (3,262) Total net position $ 34,856 $ 32,400 $ 16 $ 22 $ 34,872 $ 32,422 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 $34.9 million at the close of the most recent fiscal year, increasing $2.4 million, or 7.6% 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 $1.4 million, or 7.1%. 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 increased by $1.3 million primarily because of $0.7 million decrease in general government expenses and a $0.6 million increase in general revenues. 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 received. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 9 The following table shows the changes in net position for governmental and business-type activities. Changes in Net Position Year ended June 30, 2015 and 2016 (in thousands) Governmental Activities Business-Type Activities Total 2016 2015 2016 2015 2016 2015 Revenues: Program revenues: Charges for services $ 1,630 $ 2,220 $ 9 $ 7 $ 1,639 $ 2,227 Operating grants and contributions 8,109 8,265 73 62 8,182 8,327 Capital grants and contributions 149 310 1 91 150 401 General revenues: - - Property taxes 5,017 4,928 - - 5,017 4,928 Sales taxes 522 335 - - 522 335 Other taxes 661 534 - - 661 534 Unrestricted investment earnings 289 77 - - 289 77 Non-program grant revenues 210 155 - - 210 155 Total revenues 16,587 16,824 83 160 16,670 16,984 Expenses: General government 3,237 3,846 - - 3,237 3,846 Public protection 4,553 4,656 - - 4,553 4,656 Public ways and facilities 1,733 1,638 - - 1,733 1,638 Health and sanitation 2,726 2,367 - - 2,726 2,367 Public assistance 1,462 1,640 - - 1,462 1,640 Education 295 308 - - 295 308 Recreation 83 80 - - 83 80 Interest on long-term debt 42 45 - - 42 45 Alpine County Transit - - 89 83 89 83 Total expenses 14,131 14,580 89 83 14,220 14,663 Change in net position 2,456 2,244 77 2,450 2,321 Net position at beginning of year 32,400 39,287 22 (21) 32,422 39,266 Restatements - (9,131) - (34) - (9,165) Net position at end of the year $ 34,856 $ 32,400 $ 16 $ 22 $ 34,872 $ 32,422 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 10 Expenses and Program Revenues – Governmental Activities Year ended June 30, 2016 (in thousands) 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Program Revenues Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 11 Revenues by Source – Governmental Activities Year ended June 30, 2016 Analysis of Revenues The County’s revenues decreased by $314,402 or 1.9%. Significant changes from last fiscal year are summarized below:  Mental Health Services Act (MHSA) funding decreased $132,000 from last year. This funding derived from a 1% income tax imposed on personal income in excess of $1 million is distributed to the County upon approval of our planned activities in each of six different components.  The State’s Courthouse Construction fund made a one-time distribution of $207,000 of accumulated fines in fiscal year 2015, which was used to pay for a major renovation of the County’s historical courthouse facility.  The County accepted $115,842 of environmental public benefit funds from the Great Basin Unified Air Pollution Control District in the prior fiscal year, but not in the current fiscal year.  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.  Federal funds used for law enforcement decreased $208,207. This decrease was due to the receipt of federal moneys earned in fiscal year 2011 that were paid in the prior year. No prior year revenues of this magnitude were received in the current fiscal year. Tax revenues (property, sales, transient occupancy and other taxes) increased $403,296 over prior year. This increase is due to additional $187,495 of sales and use tax as the County received the full local 1% portion in the current year, $122,397 increase in transient occupancy taxes and $88,891 increase in property tax in the current year. Current secured and delinquent secured property tax collections were essentially the same as the prior year. Changes in the General Fund’s property tax receivable were positive as it fell by about 4% from $351,237 at June 30, 2015 to $338,473 at June 30, 2016. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 12 Expenses by Function/Program Year ended June 30, 2016 General government 22.76% Public protection 32.02% Public ways and facilities 12.19% Health and sanitation 19.17% Public assistance 10.28% Education 2.07% Recreation 0.58% Interest on long- term debt 0.30% Alpine County Transit 0.63% Expenses Analysis of Expenses The County’s expenses decreased by $442,811, or 3.0%. Significant changes from last fiscal year are summarized below: • Salary costs increased $327,562. The County was able to fill many of the vacancies resulting from the prior year attrition and retirements. • Overtime costs, incurred primarily by Sheriff Deputies, were $33,567 less than the prior year. • Employment separation costs were $79,000 less than fiscal year 2014-15. Certain employee benefits including health insurance and retirement contributions were $219,102 more due to filling vacancies, increased medical premiums and higher retirement contribution rates. • Miscellaneous professional services were $474,991 more than the prior year. • Fuel costs were $20,000 less than prior year. • Cost of maintaining the County’s buildings and structures were $89,616 more than the prior year. • Purchases of capital assets were $543,850 less than the prior year. This is due primarily to the completion of the new administration building in the prior year. Business-type activities The County operates only one business-type activity, the Alpine County Transit Service. Transit closed the year with a positive net position. This is mostly attributable to the non-recognition of an additional $35,000 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 $1,700 more than last year while expenses were $6,500 more, mostly attributable to increased depreciation. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 13 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, 2016, the County’s governmental funds reported combined ending fund balances of $28,949,106, an increase of $1,875,713 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: • Nonspendable fund balance, $1,759,241, 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 $1,188,446 held by Trindel, the County’s insurance claims processor. Nonspendable fund balance also includes $400,000 representing the corpus portion of the County’s one permanent fund. • Restricted fund balance, $20,404,420, 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 - $6,462,598 o Realignment funding - $7,446,589 o Restricted to road maintenance and improvement - $1,431,229 o County Service Area No. 1 - $717,901 o AB443 Enhancing Law Enforcement Activities - $683,171 • Committed fund balance, $1,133,263, 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. • Assigned fund balance, $3,585,948, represents amounts intended for use as determined by the Board of Supervisors and also represents the residual balance in governmental funds other than the General Fund. Assigned fund balances primarily consists of $936,000 anticipated for funding next fiscal year’s General Fund shortfall in revenues, $950,000 set aside as a general reserve to provide funding in case of emergencies, $425,000 for funding activities struggling with shrinking revenues, $517,019 set aside for unfunded other postemployment liabilities, $380,034 intended to pay the County’s MOU with the Courts and also any future facility improvements to the Courthouse building and $284,037 set aside for capital replacement and on-going capital projects. • Unassigned fund balance, $2,066,234 represents the residual classification for the General Fund netted against deficit balances in other governmental funds. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 14 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 83%, or $5,865,330, 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 decreased by $217,415, or 9% over last year’s balance. One significant change was the reclassification of the County’s $950,000 general reserve from unassigned to assigned. 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 89% of total General Fund expenditures and spendable fund balance is approximately 74%. Both measures are more favorable when compared to the prior year (87% and 72%, respectively for the prior year). This generally is because this year’s operations produced a surplus (revenues in excess of expenditures) of $466,249. Below is a chart showing General Fund surplus (deficit) for the past five years. ($600,000) ($400,000) ($200,000) $0 $200,000 $400,000 $600,000 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Surplus (Deficit) ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 15 Other Governmental Funds The Road Fund completed the year with a decrease in fund balance of $239,044. 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 an increase in fund balance of $61,082. 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 decreased this year, some components of this fund’s activities which are funded by this revenue stream progressed slower than anticipated or were delayed to subsequent years. The capital facility component included in the County’s MHSA three-year plan is set aside to finance a new Behavior Health facility in the near future. The Realignment Fund realized an increase in fund balance of $1,800,099. The increase is the current year’s surplus which was 74% higher than last year. 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. As compared with the prior year, the total fund balances of the remaining governmental funds decreased or $212,673. A majority of the decrease is the mental health fund, which decreased $268,154 from $427,725 to $159,571 due to program expenditures. 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 increased $139,961, or 0.8% from the original budget adopted in September 2015. Most of the increase resulted from unanticipated fish and game in-lieu revenues and increased transfers in. Total appropriations increased by $237,906, or 2.1%, and this increase was the result of added positions and vendor costs that increased greater than expected. Actual revenues were less than the amount budgeted by $1,200,643, or This entire shortfall is due to $1,821,025 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 $2,876,924, or 24.8% 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. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 16 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2016 totaled $16.8 million. Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads and bridges. The total net decrease (including the effect of depreciation) in the County’s capital assets for the current fiscal year was $333,164. Major capital asset additions during the current fiscal year included:  Emergency mobile shelter - $63,595  Computers - $37,271  Dispatch communication system - $75,203  Vehicles - $122,860  Public works equipment - $78,514 Debt Administration At the end of the current fiscal year, the County had total long-term liabilities outstanding of $11,704,224, an increase of $255,387 from the prior year. 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: 2016 2015 Changes Capital leases payable $ 1,077,243 $ 1,147,175 $ (69,932) scheduled payment Other postemployment benefits 1,181,459 1,077,181 104,278 pay-as-you go funded Net pension liability 8,191,403 8,082,775 108,628 contributions and other adjustments Compensated absences 473,657 432,846 40,811 net paid absences Liability for claims cost 780,462 708,860 71,602 increased anticipated claims $ 11,704,224 $ 11,448,837 $ 255,387 Additional information on the County’s long-term liabilities are in Note 5 to the basic financial statements. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2016 17 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. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS ---PAGE BREAK--- ---PAGE BREAK--- COUNTY OF ALPINE Discrete Statement of Net Position Component Unit June 30, 2016 Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 27,662,244 $ 40,386 $ 27,702,630 $ 310,599 $ Accounts receivable 107,582 - 107,582 - Taxes receivable 444,268 - 444,268 - Due from other governments 1,293,859 39,255 1,333,114 68,583 Interest receivable 38,170 18 38,188 - Prepaid expense 20,475 - 20,475 - Deposits 1,188,446 - 1,188,446 - Inventories 150,320 - 150,320 - Interfund balances - - - - Capital assets: Nondepreciable 1,801,435 - 1,801,435 - Depreciable, net 14,894,948 75,285 14,970,233 - Total Assets 47,601,747 154,944 47,756,691 379,182 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 1,107,831 6,088 1,113,919 - LIABILITIES Accounts payable 714,923 1,554 716,477 954 Accrued salaries and benefits 236,582 619 237,201 - Accrued interest payable 3,366 - 3,366 - Unearned revenue 143,551 105,526 249,077 - Long-term liabilities: Due within one year: Compensated absences 236,829 - 236,829 7,272 Capital leases 72,580 - 72,580 - Estimated liability for claims costs 780,462 - 780,462 - Due after one year: Compensated absences 236,828 - 236,828 - Capital leases 1,004,663 - 1,004,663 - Other post-employment benefits 1,181,459 - 1,181,459 - Net pension liability 8,153,944 37,458 8,191,402 - Total Liabilities 12,765,187 145,157 12,910,344 8,226 DEFERRED INFLOWS OF RESOURCES Pension adjustments 1,088,282 - 1,088,282 - NET POSITION Net investment in capital assets 15,619,140 75,285 15,694,425 - Restricted, including nonexpendable amounts of $400,000 21,124,223 - 21,124,223 370,956 Unrestricted (1,887,254) (59,410) (1,946,664) - Total Net Position 34,856,109 $ 15,875 $ 34,871,984 $ 370,956 $ See accompanying notes to the basic financial statements. 18 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2016 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 3,237,042 $ 407,924 $ - $ - $ Public protection 4,552,853 716,198 1,902,633 148,827 Public ways and facilities 1,733,222 216,048 1,353,133 - Health and sanitation 2,725,506 264,389 2,918,037 - Public assistance 1,461,812 17,266 1,910,615 - Education 295,263 8,693 24,528 - Recreation and culture 83,353 - - - Interest on long-term debt 42,145 - - - Total Governmental Activities 14,131,196 1,630,518 8,108,946 148,827 Business-Type Activities Alpine Transit Service 89,663 8,770 73,461 1,015 Total Primary Government 14,220,859 $ 1,639,288 $ 8,182,407 $ 149,842 $ Component Unit: Alpine County Children and and Families Commission 244,269 $ - $ 275,002 $ - $ 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 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: (2,829,118) $ - $ (2,829,118) $ General government (1,785,195) - (1,785,195) Public protection (164,041) - (164,041) Public ways and facilities 456,920 - 456,920 Health and sanitation 466,069 - 466,069 Public assistance (262,042) - (262,042) Education (83,353) - (83,353) Recreation and culture (42,145) - (42,145) Interest on long-term debt (4,242,905) - (4,242,905) Total Governmental Activities Business-Type Activities - (6,417) (6,417) Alpine Transit Service (4,242,905) (6,417) (4,249,322) Total Primary Government Component Unit: Alpine County Children and 30,733 $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 5,017,428 - 5,017,428 - Property taxes 522,101 - 522,101 - Sales and use taxes 629,606 - 629,606 - Transient occupancy taxes 31,348 - 31,348 - Other taxes Grants and other governmental revenues 209,428 - 209,428 - not restricted to specific programs 288,933 208 289,141 1,489 Unrestricted investment earnings 6,698,844 208 6,699,052 1,489 Total General Revenues 2,455,939 (6,209) 2,449,730 32,222 CHANGES IN NET POSITION 32,400,170 22,084 32,422,254 338,734 Net Position, Beginning of Year 34,856,109 $ 15,875 $ 34,871,984 $ 370,956 $ NET POSITION, END OF YEAR ---PAGE BREAK--- ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2016 Mental General Road Health Realignment Fund Fund Services Act Fund ASSETS Cash and investments 5,985,802 $ 1,647,751 $ 6,346,312 $ 7,373,933 $ Accounts receivable 39,534 1,609 - - Taxes receivable 430,968 - - - Due from other governments 215,872 149,542 202,176 313,235 Interest receivable 8,560 2,411 8,552 9,762 Prepaid expenses 13,272 1,329 1,670 - Deposits 1,188,446 - - - Inventories - 150,320 - - Due from other funds 145,318 58,508 400 - Total Assets 8,027,772 $ 2,011,470 $ 6,559,110 $ 7,696,930 $ LIABILITIES Accounts payable 220,774 $ 90,138 $ 65,763 $ 162 $ Accrued salaries and benefits 153,791 13,698 21,319 - Due to other funds 90,814 31,663 7,760 195,149 Unearned revenues - 143,551 - - Total Liabilities 465,379 279,050 94,842 195,311 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 495,345 149,542 - 55,030 FUND BALANCES Nonspendable 1,201,718 151,649 1,670 - Restricted 238,341 1,431,229 6,462,598 7,446,589 Committed - - - - Assigned 3,343,328 - - - Unassigned 2,283,661 - - - Total Fund Balances 7,067,048 1,582,878 6,464,268 7,446,589 Total Liabilities, Deferred Inflows of Resources and Fund Balances 8,027,772 $ 2,011,470 $ 6,559,110 $ 7,696,930 $ See the accompany notes to the basic financial statements. 20 ---PAGE BREAK--- Other Governmental Total ASSETS 6,308,446 $ 27,662,244 $ Cash and investments 66,439 107,582 Accounts receivable 13,300 444,268 Taxes receivable 413,034 1,293,859 Due from other governments 8,885 38,170 Interest receivable 4,204 20,475 Prepaid expenses - 1,188,446 Deposits - 150,320 Inventories 317,081 521,307 Due from other funds 7,131,389 $ 31,426,671 $ Total Assets LIABILITIES 338,086 $ 714,923 $ Accounts payable 47,774 236,582 Accrued salaries and benefits 195,921 521,307 Due to other funds - 143,551 Unearned revenues 581,781 1,616,363 Total Liabilities DEFERRED INFLOWS OF RESOURCES 161,285 861,202 Unavailable revenues FUND BALANCES 404,204 1,759,241 Nonspendable 4,825,663 20,404,420 Restricted 1,133,263 1,133,263 Committed 242,620 3,585,948 Assigned (217,427) 2,066,234 Unassigned 6,388,323 28,949,106 Total Fund Balances Total Liabilities, Deferred Inflows 7,131,389 $ 31,426,671 $ of Resources and Fund Balances ---PAGE BREAK--- ---PAGE BREAK--- COUNTY OF ALPINE Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds June 30, 2016 Fund balance - total governmental funds 28,949,106 $ 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 62,477,208 $ Less: accumulated depreciation (45,780,825) 16,696,383 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 861,202 Deferred outflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 1,110,039 Deferred inflows of resources in governmental activities does not require the use of financial resources and, therefore, are not reported in the governmental funds (1,090,490) 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 (780,462) Capital leases (1,077,243) Compensated absences (473,657) Other post-employment benefits (1,181,459) Net pension liability (8,153,944) Accrued interest payable (3,366) Net position of governmental activities 34,856,109 $ See the accompanying notes to the basic financial statements. 21 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2016 Mental General Road Health Realignment Fund Fund Services Act Fund REVENUES Taxes 6,180,074 $ - $ - $ - $ Licenses and permits 35,319 860 - - Fines, forfeitures and penalties 231,736 1,200 - - Use of money and property 56,619 132,060 39,111 41,923 Intergovernmental 766,678 918,343 1,445,960 2,146,060 Charges for services 540,292 288,490 - - Other revenues 29,924 383 - - Total Revenues 7,840,642 1,341,336 1,485,071 2,187,983 EXPENDITURES Current: General government 2,599,669 - - - Public protection 4,128,676 - - 41,121 Public ways and facilities 66,225 1,269,615 - - Health and sanitation 118,854 - 1,349,814 - Public assistance 508,432 - - - Education 323,259 - - - Recreation and cultural services 36,020 - - - Capital outlay 148,149 312,704 68,175 - Debt service: Principal - - - - Interest and issuance cost - - - - Total Expenditures 7,929,284 1,582,319 1,417,989 41,121 Excess (Deficiency) of Revenues Over (Under) Expenditures (88,642) (240,983) 67,082 2,146,862 OTHER FINANCING SOURCES (USES) Sale of assets - 33,930 - - Transfers in 1,024,185 7,570 - 200,000 Transfers out (469,294) (39,561) (6,000) (546,763) Total Other Financing Sources and (Uses) 554,891 1,939 (6,000) (346,763) NET CHANGES IN FUND BALANCES 466,249 (239,044) 61,082 1,800,099 Fund Balances, Beginning of Year, as restated 6,600,799 1,821,922 6,403,186 5,646,490 FUND BALANCES, END OF YEAR 7,067,048 $ 1,582,878 $ 6,464,268 $ 7,446,589 $ See the accompanying notes to the basic financial statements. 22 ---PAGE BREAK--- Other Governmental Total REVENUES 88,482 $ 6,268,556 $ Taxes 57,912 94,091 Licenses and permits 2,612 235,548 Fines, forfeitures and penalties 75,547 345,260 Use of money and property 3,045,633 8,322,674 Intergovernmental 961,786 1,790,568 Charges for services 61,279 91,586 Other revenues 4,293,251 17,148,283 Total Revenues EXPENDITURES Current: 74,446 2,674,115 General government 596,775 4,766,572 Public protection 467,698 1,803,538 Public ways and facilities 1,498,720 2,967,388 Health and sanitation 1,126,239 1,634,671 Public assistance - 323,259 Education - 36,020 Recreation and cultural services 472,933 1,001,961 Capital outlay Debt service: 69,932 69,932 Principal 42,364 42,364 Interest and issuance cost 4,349,107 15,319,820 Total Expenditures Excess (Deficiency) of Revenues Over (55,856) 1,828,463 (Under) Expenditures OTHER FINANCING SOURCES (USES) 13,320 47,250 Sale of assets 1,280,388 2,512,143 Transfers in (1,450,525) (2,512,143) Transfers out (156,817) 47,250 Total Other Financing Sources and (Uses) (212,673) 1,875,713 NET CHANGES IN FUND BALANCES 6,600,996 27,073,393 Fund Balances, Beginning of Year, as restated 6,388,323 $ 28,949,106 $ FUND BALANCES, END OF YEAR ---PAGE BREAK--- ---PAGE BREAK--- 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, 2016 Net change to fund balance - total governmental funds 1,875,713 $ 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 918,707 Less: current year depreciation (1,231,304) (312,597) 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 109,376 Unavailable revenues are reported as deferred inflows of resources in the governmental funds, but are recognized as revenues in the statement of activities 34,931 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 69,932 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 219 Change in compensated absences (40,811) Change in estimated liability for claims costs (71,602) Change in other post-employment benefits (104,278) (216,472) 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 895,056 Change in net position of governmental activities 2,455,939 $ Amounts reported for governmental activities in the statement of activities are different because: See the accompanying notes to the basic financial statements. 23 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Net Position Proprietary Funds - Alpine Transit Service June 30, 2016 ASSETS Current Assets: Cash and investments 40,386 $ Due from other governments 39,255 Interest receivable 18 Due from other funds - Total Current Assets 79,659 Non-Current Assets: Equipment, net of accumulated depreciation 75,285 Total Assets 154,944 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 6,088 LIABILITIES Current Liabilities: Accounts payable 1,554 Accrued salaries and benefits 619 Due to other funds - Unearned revenue 105,526 Total Current Liabilities 107,699 Noncurrent Liabilities: Net pension liability 37,458 Total Liabilities 145,157 DEFERRED INFLOWS OF RESOURCES Pension adjustments - NET POSITION Net investment in capital assets 75,285 Unrestricted (59,410) Total Net Position 15,875 $ See the accompanying notes to the basic financial statements. 24 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2016 OPERATING REVENUES Passenger fares 8,770 $ OPERATING EXPENSES Salaries and benefits 42,445 Adminstrative 18,486 Fuel and vehicle maintenance 7,608 Insurance 558 Depreciation 20,566 Total Operating Expenses 89,663 OPERATING INCOME (LOSS) (80,893) NON-OPERATING REVENUES (EXPENSES) Federal Transit Administration operating grant 73,461 Local Transportation Fund allocation - Interest 208 Total Non-Operating Revenues (Expenses) 73,669 Income before Capital Contributions (7,224) CAPITAL CONTRIBUTIONS Federal Transit Admininstration capital grant - Prop 1B proceeds 1,015 State Transit Assistance funds - Total Capital Contributions 1,015 CHANGE IN NET POSITION (6,209) Net Position, Beginning of Year 22,084 NET POSITION, END OF YEAR 15,875 $ See the accompanying notes to the basic financial statements. 25 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Cash Flows Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 7,984 $ Cash paid to employees (44,951) Cash paid to suppliers for goods and services (25,139) Net Cash Used by Operating Activities (62,106) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments 216 Net Cash Provided by Investment Activities 216 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 69,206 Net Cash Provided by Noncapital Financing Activities 69,206 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contribution 1,015 Acquisition of capital assets 1 Net Cash Used in Capital and Related Financing Activities 1,016 NET DECREASE IN CASH AND CASH EQUIVALENTS 8,332 Cash and Cash Equivalents, Beginning of Year 32,054 CASH AND CASH EQUIVALENTS, END OF YEAR 40,386 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (80,893) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 20,566 Changes in assets and liabilities: Interfund receivables 622 Deferred outflows (5,535) Accounts payable 1,513 Accrued salaries and benefits (42) Interfund payables (1,408) Deferred inflows (6,052) Net pension liability 9,123 NET CASH USED BY OPERATING ACTIVITIES (62,106) $ See the accompanying notes to the basic financial statements. 26 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2016 Investment Agency Trust Funds ASSETS Cash and investments 7,379,598 $ 332,475 $ Accounts receivable - 72,060 Interest receivable 9,920 38,618 Total Assets 7,389,518 443,153 LIABILITIES Accounts payable - 135,341 Agency obligations - 307,812 Total Liabilities - 443,153 NET POSITION Net position held in trust for investment pool participants 7,389,518 - Total Net Position 7,389,518 $ - $ See the accompanying notes to the basic financial statements. 27 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2016 Investment Trust ADDITIONS Contributions to investment pool 4,382,907 $ Investment earnings 43,918 Total Additions 4,426,825 DEDUCTIONS Distributions from pooled investment accounts 4,151,526 Total Deductions 4,151,526 CHANGE IN NET POSITION 275,299 Net Position, Beginning of Year 7,114,219 NET POSITION, END OF YEAR 7,389,518 $ See the accompanying notes to the basic financial statements. 28 ---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, 2016 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, 2016 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: • 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, 2016 32 • 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. • 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. • 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. The County reports its only enterprise fund described below as a major fund: • The Alpine Transit Service Fund provides public transit services in the County. The County reports the following fiduciary fund types: • 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. • 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, 2016 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, 2016, to support the value of pool shares. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 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, 2016, 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, 2016 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, 2016, 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, 2016 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. 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. 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. M. 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 37 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. N. Net Position The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: • 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. • 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. • Unrestricted Net position – This category represents net position of the County, not restricted for any project or other purpose. 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. O. 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. • 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. • 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. • 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 38 • 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. • 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. P. 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. Q. Implementation of Governmental Accounting Standards Board (GASB) Statements The following Governmental Accounting Standard Board (GASB) Statements have been implemented in the current financial statements: Governmental Accounting Standards Board Statement No. 72 - Fair Value Measurement and Application The requirements of this Statement are effective for reporting periods beginning after June 15, 2015. Governmental Accounting Standards Board Statement No. 73 - Accounting and Financial Reporting for Pension and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statement No. 67 and No. 68 The requirements of this Standard are effective for periods beginning after June 15, 2015, except those requirements that address accounting and financial reporting by employers and governmental nonemployer contributing entities for pensions that are not within the scope of GASB Statement No. 68, which are effective for reporting periods beginning after June 15, 2016. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 39 Governmental Accounting Standards Board Statement No. 76 – The Hierarchy of Generally Accepted Accounting Principles for State and Local Government The requirements of this Statement are effective for reporting periods beginning after June 15, 2015. Governmental Accounting Standards Board Statement No. 79 - Certain External Investment Pools The requirement of this Statement are effective for reporting periods beginning after June 15, 2015, except for certain provisions on portfolio quality, custodial credit risk, and shadow pricing. Those provisions are effective for reporting periods beginning after December 15, 2015. Governmental Accounting Standards Board Statement No. 82 - Pension Issues The requirements of this Statement are effective for reporting periods beginning after June 15, 2016, except for the requirements of this Statement for the selection of assumptions in a circumstance in which an employer’s pension liability is measured as of a date other than the employer’s most recent fiscal year end. In that circumstance, the requirements for the selection of assumptions are effective for that employer in the first reporting period in which the measurement date of the pension liability is on or after June 15, 2017. The County has early implemented this standard. R. Future Pronouncements The County is currently analyzing its accounting and financial reporting practices to determine the potential impact on the financial statements of the following recently issued GASB Statements. Governmental Accounting Standards Board Statement No. 74 GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, is effective for periods beginning after June 15, 2016. The principal objective of this statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. Governmental Accounting Standards Board Statement No. 75 GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pension Plans, is effective for periods beginning after June 15, 2017. The principal objective of this statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 40 Governmental Accounting Standards Board Statement No. 77 GASB Statement No. 77, Tax Abatement Disclosures, is effective for periods beginning after December, 15, 2015. The principal objective of this statement is to assist the users of the financial statements in assessing whether a government’s current year revenues were sufficient to pay current year services; whether a government complied with finance-related legal and contractual obligations; where a government’s financial resources come from and how it uses them; and a government’s financial position and economic condition and how they have changed over time. Governmental Accounting Standards Board Statement No. 78 GASB Statement No. 78, Blending Requirements for Certain Component Units, is effective for periods beginning after December 15, 2015. The principal objective of this statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided through certain multiple-employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions. Governmental Accounting Standards Board Statement No. 80 GASB Statement No. 80, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans, is effective for periods beginning after June 15, 2016. The principal objective of this Statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units. This Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. Governmental Accounting Standards Board Statement No. 81 GASB Statement No. 81, Irrevocable Split-Interest Agreements, is effective for periods beginning after December 15, 2016. The principal objective of this Statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. Governmental Accounting Standards Board Statement No. 83 GASB Statement No. 83, Certain Asset Retirement Obligations, is effective for periods beginning after June 15, 2018. The principal objective of this Statement is to address accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 41 Note 2: Cash and Investments At June 30, 2016, total County cash and investments were as follows: Cash: Cash on hand $ 464 Imprest accounts 380 Deposits 753,872 Total Cash 754,716 Investments: In Treasurer's Pool 34,659,987 Total Cash and investments $ 35,414,703 Total cash and investments at June 30, 2016 were presented on the County’s financial statements as follows: Primary government $ 27,702,630 Investment trust fund 7,379,598 Agency funds $ 332,475 Total Cash and investments 35,414,703 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 42 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. 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% Notes Issued by Corporations Under FDIC, TLGP 5 Years None None Local Agency Investment Fund (LAIF) N/A None None At June 30, 2016, the County had the following investments: Weighted Fair Average Maturity Investment Rates Maturities Par Value (Days) Investments in Investment Pool: U.S. Treasuries 0.500% - 2.00% 8/25/16 - 2/18/21 $ 4,445,000 $ 4,486,291 676.8 Federal Agency Obligations 0.625% - 1.50% 8/31/16 - 4/30/20 2,150,000 2,168,081 669.6 Money Market Mutual Funds Variable On Demand 7,337 7,337 0 LAIF Variable On Demand 27,998,278 27,998,278 165.6 $ 34,600,615 $ 34,659,987 262.8 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 43 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: • Level 1: Investments reflect prices quoted in active markets; • 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, • Level 3: Investments reflect prices based upon unobservable sources 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 $ 2,168,081 $ 2,168,081 $ - $ - U.S. Treasuries 4,486,291 4,486,291 - - Money Market Mutual Funds 7,337 7,337 - - Total Investments Measured at Fair Value 6,661,709 $ 6,661,709 $ - $ - Unclassified Investments: Local Agency Investment Fund 27,998,278 Total Investments $ 34,659,987 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, 2016, the County’s portfolio WAM associated with the investment pool was 262.8 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 44 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, 2016. Credit Rating % Investment in Pool Moody's/S&P/Finch Holdings Federal Agency Obligations Aaa/AA+/AAA 12.94% U.S. Treasuries Aaa/AA+/AAA 6.26% Money Market Mutual Funds Aaa/AAA/AAA 0.02% LAIF Not Rated 80.78% 100.00% 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, 2016, the County’s investment position in LAIF was $27,998,278. 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 $75.4 billion. Of that amount, 2.81% was invested in structured notes and asset-backed securities with the remaining 97.19% invested in other non-derivative financial products. The average maturity of PMIA investments was 165.6 days as of June 30, 2016. 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 participants 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 45 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, 2016, involuntary participants of the County’s investment pool totaled $7,299,747. 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. The following represents a condensed statement of net position and changes in net position for the County’s investment pool as of June 30, 2016: Statement of Net Position Net position held for pool participants $ 35,414,703 Equity of External pool participants $ 7,379,598 Equity of Internal pool participants 28,035,105 Total Net Position $ 35,414,703 Statement of Changes in Net Position Investment earnings $ 196,374 Investment expenses (41,162) Net contributions by pool participants 1,878,304 Decrease in Net Position $ 2,033,516 Net Position at July 1, 2015 33,381,187 Net Position at June 30, 2016 $ 35,414,703 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 46 The composition of interfund balances classified as due to / from other funds as of June 30, 2016 is as follows: Receivable Fund Payable Fund Amount General Fund Road Fund $ 31,663 Mental Health Services Act 7,760 Realignment Fund 51,116 Other Governmental Funds 54,779 145,318 Road Fund Other Governmental Funds 58,508 Mental Health Services Act Other Governmental Funds 400 Other Governmental Funds General Fund 90,814 Realignment Fund 144,033 Other Governmental Funds 82,234 317,081 $ 521,307 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 47 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, 2016: Transfers between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Other Governmental Funds $ 469,294 Road Fund General Fund 39,561 Mental Health Services Act Other Governmental Funds 6,000 Realignment Fund General Fund 161,938 Other Governmental Funds 384,825 546,763 Other Governmental Funds General Fund 822,730 Road Fund 7,570 Realignment Fund 200,000 Other Governmental Funds 420,225 1,450,525 $ 2,512,143 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 48 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2016 was as follows: Balance Transfers & Balance July 1, 2015 Additions Retirements Adjustments June 30, 2016 Governmental Activities: Total capital assets, not being depreciated Land $ 1,220,599 $ - $ - $ - $ 1,220,599 Construction in progress 93,654 541,265 - (54,083) 580,836 Total capital assets, not being depreciated 1,314,253 541,265 - (54,083) 1,801,435 Total capital assets, being depreciated Structures and improvements 15,003,651 - - 54,083 15,057,734 Equipment 10,545,681 377,442 - - 10,923,123 Infrastructure 34,694,917 - - - 34,694,917 Total capital assets, being depreciated 60,244,249 377,442 - 54,083 60,675,774 Less accumulated depreciation for: Structures and improvements (3,968,488) (489,668) - - (4,458,156) Equipment (6,885,571) (714,229) - - (7,599,800) Infrastructure (33,695,463) (27,407) - - (33,722,870) Total accumulated depreciation (44,549,522) (1,231,304) - - (45,780,826) Total capital assets, being depreciated, net 15,694,727 (853,862) - 54,083 14,894,948 Governmental activities capital assets, net $ 17,008,980 $ (312,597) $ - $ - $ 16,696,383 Business-Type Activities: Total capital assets, being depreciated Equipment $ 143,959 $ - $ - $ - $ 143,959 Total capital assets, being depreciated 143,959 - - - 143,959 Less accumulated depreciation for: Equipment (48,107) (20,566) - - (68,673) Total accumulated depreciation (48,107) (20,566) - - (68,673) Business-Type activities capital assets, net $ 95,852 $ (20,566) $ - $ - $ 75,286 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 49 Depreciation expense was charged to governmental functions as follows: General government $ 265,612 Public protection 565,484 Public ways and facilities 234,070 Health and sanitation 30,852 Public assistance 88,805 Education 398 Recreation and cultural services 46,083 Total depreciation expense governmental activities $ 1,231,304 Depreciation expense was charged to the business-type activities as follows: Alpine Transit Service $ 20,566 Note 5: Long-Term Liabilities The following is a summary of long-term liabilities activity for the fiscal year ended June 30, 2016: Balance Balance Amounts Due July 1, 2015 Additions Retirements June 30, 2016 Within One Year Governmental Activities: Capital leases payable $ 1,147,175 $ - $ (69,932) $ 1,077,243 $ 72,580 Net pension liability 8,054,440 4,138,893 (4,039,389) 8,153,944 - Other postemployment benefits 1,077,181 574,975 (470,697) 1,181,459 - Compensated absences 432,846 257,234 (216,423) 473,657 236,829 Liability for claims costs 708,860 438,492 (366,890) 780,462 780,462 $ 11,420,502 $ 5,409,594 $ (5,163,331) $ 11,666,765 $ 1,089,871 Business-type Activities: Net pension liability $ 28,335 $ 13,081 $ (3,958) $ 37,458 $ - $ 28,335 $ 13,081 $ (3,958) $ 37,458 $ - 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 50 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, 2016: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2016 Alpine County Government Center 3.75% $ 1,077,243 Included in the governmental activities are the following capital asset amounts under capital leases: Accumulated Cost Depreciation Book Value Administration building $ 200,760 $ 7,528 $ 193,232 Community development building 943,884 58,992 884,892 Sheriff secure storage facility 155,356 9,710 145,646 $ 1,300,000 $ 76,230 $ 1,223,770 As of June 30, 2016, future minimum lease payments under capital leases were as follows: Year Ending June 30: 2017 $ 112,296 2018 112,296 2019 112,296 2020 112,296 2021 112,296 2022-2026 561,478 2027-2028 224,591 Total Future Minimum Lease Payments 1,347,549 Less: Interest (270,306) Present Value of Minimum Lease Payments $ 1,077,243 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 51 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2016 are as follows: Mental General Road Health Realignment Other Fund Fund Services Act Fund Governmental Total Nonspendable: Permanent funds $ - $ - $ - $ - $ 400,000 $ 400,000 Deposits 1,188,446 - - - - 1,188,446 Prepaid expenses 13,272 1,329 1,670 - 4,204 20,475 Inventories - 150,320 - - - 150,320 Total Nonspendable 1,201,718 151,649 1,670 - 404,204 1,759,241 Restricted: Public protection - - - 731,905 2,323,572 3,055,477 Public ways and facilities - 1,431,229 - - 198,073 1,629,302 Health and sanitation - - 6,462,598 3,193,084 811,090 10,466,772 Public assistance - - - 3,521,600 309,922 3,831,522 Capital projects - - - - 342,497 342,497 CSA - - - - 717,901 717,901 Other 238,341 - - - 122,608 360,949 Total Restricted 238,341 1,431,229 6,462,598 7,446,589 4,825,663 20,404,420 Committed: Capital projects - - - - 1,133,263 1,133,263 Total Committed - - - - 1,133,263 1,133,263 Assigned: Critical services 425,000 - - - 188,291 613,291 Sheriff capital replacement 95,746 - - - - 95,746 Capital projects - - - - - - Courthouse 380,034 - - - - 380,034 Post-employment benefits 517,019 - - - - 517,019 Eliminate projected 2015-16 - budgetary deficit - - - - - - Other 1,925,529 - - - 54,329 1,979,858 Total Assigned 3,343,328 - - - 242,620 3,585,948 Unassigned 2,283,661 - - - (217,427) 2,066,234 Total Fund Balances $ 7,067,048 $ 1,582,878 $ 6,464,268 $ 7,446,589 $ 6,388,323 $ 28,949,106 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 52 Net position from governmental activities as of June 30, 2016, was restricted for the following purposes: Capital projects $ 342,497 Public protection 3,652,327 Public ways and facilities 1,931,853 Health and sanitation 10,029,822 Public assistance 3,872,886 County Service Area #1 772,230 Other: Trust for Public Land - nonexpendable 400,000 Administrative Services 122,608 $ 21,124,223 Deficit fund balances / net position as of June 30, 2016, were as follows: Governmental Funds: District Attorney Victim Witness Grant Grant fund 24,823 COPS Grant Grant fund 3,738 State OES FEMA Grant fund 6,817 Alpine County Transportation Commission Transportation fund 56,387 SNC Prop 84 Grant Grant fund 23,717 Public Health Miscellaneous Grants Grant fund 101,945 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. Restatements of Fund Balance / Net Position Adjustments resulting from errors or a change to comply with provisions of the accounting standards are treated as adjustments to prior periods. Accordingly, the County reports these changes as restatements of beginning fund balance / net position. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 53 The impact of the restatements on the fund balances / net position as previously reported is presented below: Fund Statements Road County Road Fund Improvement Fund balance/net position, June 30, 2015 as previously reported $ 1,844,640 $ (22,718) Restatements: County Road Improvement Fund combined with the Road Fund (22,718) 22,718 Fund balance/net position, June 30, 2015 as restated 1,821,922 - 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 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 54 The Plans’ provisions and benefits in effect at June 30, 2016 are summarized as follows: 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 Prior to January 1, 2013 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 6.891% 6.500% 9.000% 12.250% Required employer contribution rates 9.353% 6.730% 20.230% 11.923% Employer paid member contribution rates 2% to 7% depending on length of service None None None Provision terminated effective January 1, 2015. 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. For the year ended June 30, 2016, the contributions recognized as part of pension expense for each Plan were as follows: Miscellaneous Miscellaneous Safety Safety 1st Tier PEPRA 1st Tier PEPRA Contributions - employer $ 603,876 $ 69,255 $ 359,452 $ 12,801 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 55 Pension Liabilities, Pension Expenses and Deferred Outflows/inflows of Resources Related to Pensions As of June 30, 2016, the County reported net pension liabilities for its proportionate shares of the net position liability of each Plan as follows: Proportionate Share of Net Pension Liability Miscellaneous - 1st Tier $ 5,226,762 Miscellaneous - PEPRA (2,520) Safety - 1st Tier 2,967,160 Safety - PEPRA - $ 8,191,402 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, 2015, 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, 2014, rolled forward to June 30, 2015, 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, 2014 and 2015 was as follows: Miscellaneous Miscellaneous Safety 1st Tier PEPRA 1st Tier Proportion - June 30, 2014 0.21619% 0.00003% 0.07077% Proportion - June 30, 2015 0.19052% -0.00009% 0.07201% Change - Increase (Decrease) -0.02567% -0.00012% 0.00124% For the year ended June 30, 2016, the County recognized pension expense of $390,776. At June 30, 2016, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 56 Deferred Outflows of Deferred Inflows of Resources Resources Pension contributions subsequent to measurement date $ 1,045,383 $ - Net differences between expected and actual experience - (14,409) Changes of assumptions - (511,178) Net differences between actual and allocated employer contributions 68,536 (93,486) Adjustments due to differences in proportions - (211,785) Net differences between projected and actual earnings on plan investments - (257,424) $ 1,113,919 $ (1,088,282) Of the total reported as deferred outflows of resources, $1,045,383 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, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources to pensions will be recognized as pension expense as follows: Year Ended June 30 2017 $ (461,993) 2018 (464,199) 2019 (417,162) 2020 323,610 (1,019,744) ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 57 Actuarial Assumptions The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the following actuarial assumptions for all Plans: Valuation date June 30, 2014 Measurement date June 30, 2015 Actuarial cost method Entry-age Normal Cost Method Actuarial Assumptions: Discount rate 7.65% Inflation 2.75% Payroll growth 3.0% Projected salary increase Varies by entry age and service depending on age, service and type of employment Investment rate of return 7.50%, net of pension plan investment and administrative expenses, including inflation Mortality Derived using CalPERS' membership data for all funds The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2014 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 7.65% 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 7.65 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65 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 7.50 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 7.65 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 58 On December 21, 2016 the California Public Employees’ Retirement Board voted to lower the discount rate from 7.5% to 7% over three fiscal years beginning in fiscal year 2017-2018. Ths discount rate will be decreased 0.125% in the first two fiscal years and 0.250% in the final fiscal year. 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 51.00% 5.25% 5.71% Global Fixed Income 19.00% 0.99% 2.43% Inflation Sensitive 6.00% 0.45% 3.36% Private Equity 10.00% 6.83% 6.95% Real Estate 10.00% 4.50% 5.13% Infrastructure and Forestland 2.00% 4.50% 5.09% Liquidity 2.00% -0.55% -1.05% 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, 2016 59 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: Miscellaneous Miscellaneous Safety 1st Tier PEPRA 1st Tier Net pension liability if 1% decreasee $ 8,477,764 $ (4,087) $ 4,812,709 Net pension liability if current discount rate 5,226,762 (2,520) 2,967,160 Net pension liability if 1% increase 2,548,779 (1,229) 1,446,907 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, 2016.. Note 9: Other Post-Employment Benefits (OPEB) Plan Description The County provides retiree healthcare benefits to qualifying employees retiring directly from the County. 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. Funding Policy The contribution requirements of the plan members and the County are established and may be amended by the County. The County is not pre-funding the plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 60 Annual OPEB Cost and Net OPEB Obligation The County’s OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC). The ARC is an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The County ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize the unfunded actuarial liability over a period of 30 years. The following table shows the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and the resulting net OPEB obligation. Annual required contribution $ 582,554 Interest on prior year net OPEB obligation 43,087 Amortization of prior year net OPEB obligation (50,666) Annual OPEB Cost 574,975 Payments on behalf of retirees (420,755) Estimated implicit subsidy for current year (49,942) Increase in net OPEB obligation 104,278 Net OPEB obligation, beginning of year, restated 1,077,181 Net OPEB obligation, end of year $ 1,181,459 The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and prior two years are as follows: Net Percentage Net Year Pension Annual of Annual Pension Ended Obligation OPEB Annual OPEB Cost Obligation June 30: Beginning of Year(1) Cost Contributions(1) Contributed End of Year 2014 $ 898,107 $ 533,617 $ 459,505 86.11% $ 972,219 2015 972,219 553,968 449,006 81.05% 1,077,181 2016 1,077,181 574,975 470,697 81.86% 1,181,459 Restated to include effect of prior period adjustment accounting for the fiscal year 2013-2014 implicit rate adjustment ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 61 Funded Status and Funding Progress The funded status of the plan as of January 1, 2014, the plan’s most recent actuarial valuation date, was as follows: Actuarial accrued liability (AAL) $ 8,067,861 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) $ 8,067,861 Funded ratio (actuarial value of plan assets / AAL) 0.00% Covered payroll (active plan members) $ 4,861,333 UAAL as a percentage of covered payroll 165.96% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the basic financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2014 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 4.0 percent investment rate of return (net of administrative expenses). Salary increases were estimated at 3.25 percent per year. Information on mortality, turnover and retirement rates was based on CalPERS public agency data. Healthcare costs were forecasted to increase by 8.5 percent in 2016, then by ½ percent less each year until 2023 at which time increases would level off at 5 percent per year thereafter. The actuarial value of assets is equal to the market value. The UAAL is being amortized as a level percentage of projected payrolls over 30 years on a closed basis. The remaining amortization period at January 1, 2014 was 26 years. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 62 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 2015-2016. The County holds a deposit with Trindel Insurance from which claims are paid. At June 30, 2016, the balance of the deposit was $1,188,446. 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, 2016 and 2015 were as follows: 2016 2015 Unpaid claims, beginning of year $ 708,860 $ 447,779 Current year claims (including incurred but not reported) 438,492 835,369 Claims payments and changes in estimates (366,890) (574,288) Unpaid claims, end of year $ 780,462 $ 708,860 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2016 63 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. Construction Commitments At June 30, 2016, the County had no ongoing construction commitments. Subsequent Events Management has evaluated events subsequent to June 30, 2016 through March 29, 2017, the date on which the financial statements were available for issuance. Management has determined the following subsequent events require disclosure. Financial Accounting and Budgeting System On January 4, 2017, Alpine County was informed that Advanced Data Systems (ADS), the current accounting, budget, fixed asset and payroll system will be discontinued on December 31, 2019. Alpine County is looking for a replacement system and expects a significant investment in time and money will be required to implement the new system over the next 2 years. California Public Employees’ Retirement System Change in Discount Rate On December 21, 2016 the California Public Employees’ Retirement Board voted to lower the discount rate from 7.5% to 7% over the next three years. The discount rate changes approved by the Board for the next three Fiscal Years (FY) will be implemented as follows: • FY 2017-2018: 7.375% • FY 2018-2019: 7.25% • FY 2019-2020: 7.00% This change will increase the rates paid for all classifications (Miscellaneous and Safety, Classic and PEPRA members) and unfunded actuarial liability. Estimated impact will be 1% to 3% for miscellaneous payroll, 3% to 5% for safety payroll and a 30% to 40% increase in unfunded liability payments. ---PAGE BREAK--- ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2015 64 Schedule of Funding Progress – Retiree Healthcare Plan Entry Age Normal Actuarial Unfunded Annual UAAL as Valuation Accrued Value of (Overfunded) Funded Covered a % of Date Liability Assets Liability Ratio Payroll Payroll January 1, 2008 8,364,946 $ - $ 8,364,946 $ 0.00% 4,380,489 $ 190.96% January 1, 2011 7,146,425 - 7,146,425 0.00% 3,809,470 187.60% January 1, 2014 7,919,738 - 7,919,738 0.00% 4,560,109 173.67% ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2015 65 County Pension Plan Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2016 - Last 10 Years* 2016 2015 Miscellaneous Plan 1st Tier Proportion of the net pension liability 0.07615% 0.08688% Proportionate share of the net pension liability $ 5,226,762 $ 5,406,384 Covered employee payroll $ 3,153,961 $ 3,466,681 Proportionate share of the net pension liability as a percentage of covered employee payroll 165.72% 155.95% Plan's fiduciary net position $ 19,675,535 $ 20,796,946 Plan's fiduciary net position as a percentage of the total pension liability 79.01% 79.37% Miscellaneous Plan PEPRA Proportion of the net pension liability -0.00004% 0.00001% Proportionate share of the net pension liability $ (2,520) $ 792 Covered employee payroll $ 1,032,781 $ 154,402 Proportionate share of the net pension liability as a percentage of covered employee payroll -0.24% 0.51% Plan's fiduciary net position $ 60,651 $ 20,796,946 Plan's fiduciary net position as a percentage of the total pension liability 104.33% 83.02% Safety Plan 1st Tier Proportion of the net pension liability 0.04323% 0.04300% Proportionate share of the net pension liability $ 2,967,160 $ 2,675,599 Covered employee payroll $ 743,663 $ 1,178,026 Proportionate share of the net pension liability as a percentage of covered employee payroll 398.99% 227.13% Plan's fiduciary net position $ 9,400,301 $ 20,796,946 Plan's fiduciary net position as a percentage of the total pension liability 76.01% 77.29% Safety Plan PEPRA Proportion of the net pension liability 0.00000% Proportionate share of the net pension liability - Covered employee payroll $ 107,361 Proportionate share of the net pension liability as a percentage of covered employee payroll 0.00% Plan's fiduciary net position - Plan's fiduciary net position as a percentage of the total pension liability n/a * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Historical information is required only for measurement periods for which GASB 68 is applicable; therefore, only two years are shown. ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2015 66 County Pension Plan Schedule of Contributions For the Year Ended June 30, 2016 Last 10 Years* 2016 2015 Miscellaneous Plan 1st Tier Contractually required contribution (actuarially determined) $ 603,876 $ 564,153 Contributions in relation to the actuarially determined contributions (603,876) (564,153) Contribution defeciency (excess) $ - $ - Covered employee payroll $ 3,153,961 $ 3,466,681 Contributions as a percentage of covered employee payroll 19.15% 16.27% Miscellaneous Plan PEPRA Contractually required contribution (actuarially determined) $ 69,255 $ 19,134 Contributions in relation to the actuarially determined contributions (69,255) (19,134) Contribution defeciency (excess) $ - $ - Covered employee payroll $ 1,032,781 $ 154,402 Contributions as a percentage of covered employee payroll 6.71% 12.39% Safety Plan 1st Tier Contractually required contribution (actuarially determined) $ 359,452 $ 395,787 Contributions in relation to the actuarially determined contributions (359,452) (395,787) Contribution defeciency (excess) $ - $ - Covered employee payroll $ 824,397 $ 1,178,026 Contributions as a percentage of covered employee payroll 43.60% 33.60% Safety Plan PEPRA Contractually required contribution (actuarially determined) $ 12,801 $ - Contributions in relation to the actuarially determined contributions (12,801) - Contribution defeciency (excess) $ - $ - Covered employee payroll $ 107,361 $ - Contributions as a percentage of covered employee payroll 11.92% * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Historical information is required only for measurement periods for which GASB 68 is applicable; therefore, only two years are shown. ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2015 67 Notes to County Pension Plans For the Year Ended June 30, 2016 Note 1: Schedule of Proportionate Share of the Net Pension Liability There were no changes in assumptions or benefits in calculating the net pension liability. Note 2: Schedule of Contributions Methods and assumptions used to determine the contribution rates for the Miscellaneous Plan 1st Tier were as follows: Valuation Date June 30, 2014 Actuarial cost method Entry Age Normal Amortization method Level percentage of payroll, closed Remaining amortization period 18 years as of the valuation date Asset valuation method 15-year smoothed market Inflation 2.75% Payroll growth 3.0% Salary increases 3.3% to 14.2% depending on age, service, and type of employment Investment rate of return 7.50%, net of pension plan investment expense, including inflation Retirement age 55 years Methods and assumptions used to determine the contribution rates for the Miscellaneous Plan PEPRA were as follows: Valuation Date June 30, 2014 Actuarial cost method Entry Age Normal Amortization method Level percentage of payroll, closed Remaining amortization period 18 years as of the valuation date Asset valuation method 15-year smoothed market Inflation 2.75% Payroll growth 3.0% Salary increases 3.3% to 14.2% depending on age, service, and type of employment Investment rate of return 7.50%, net of pension plan investment expense, including inflation Retirement age 62 years ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2015 68 Methods and assumptions used to determine the contribution rates for the Safety Plan 1st Tier were as follows: Valuation Date June 30, 2014 Actuarial cost method Entry Age Normal Amortization method Level percentage of payroll, closed Remaining amortization period 18 years as of the valuation date Asset valuation method 15-year smoothed market Inflation 2.75% Payroll growth 3.0% Salary increases 3.3% to 14.2% depending on age, service, and type of employment Investment rate of return 7.50%, net of pension plan investment expense, including inflation Retirement age 50 years ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule General Fund Variance with For the Year Ended June 30, 2016 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 6,600,799 $ 6,600,799 $ 6,600,799 $ - $ RESOURCES (inflows): Taxes 5,527,648 5,527,648 6,180,074 652,426 Licenses and permits 33,980 33,980 35,319 1,339 Fines, forfeitures and penalties 156,030 156,030 43,324 (112,706) Use of money and property 33,990 33,990 50,890 16,900 Intergovernmental 805,319 852,984 766,678 (86,306) Charges for services 878,888 878,888 1,014,273 135,385 Other revenues 16,580 16,580 29,924 13,344 Transfers from other funds 2,752,914 2,845,210 1,024,185 (1,821,025) Amounts Available for Appropriation 16,806,148 16,946,109 15,745,466 (1,200,643) CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 344,100 344,100 332,316 11,784 County Administrative Officer 195,203 197,603 196,666 937 Personnel 178,562 178,562 156,487 22,075 Auditor-Controller 302,190 308,890 294,252 14,638 OMB 87 Central Services 169,431 186,866 190,484 (3,618) General Central Services 36,100 31,500 30,662 838 Information Technology 211,857 250,407 209,336 41,071 Treasurer-Tax Collector 176,155 175,455 164,616 10,839 Assessor 346,824 361,324 344,749 16,575 Elections 19,287 19,287 19,083 204 Buildings & Grounds 559,112 485,837 439,351 46,486 BV Building & Grounds 70,747 70,747 66,225 4,522 Risk Management 85,181 135,181 118,759 16,422 Retiree Benefits 423,000 427,613 380,445 47,168 Legal Counsel 203,298 203,298 202,434 864 Total General Government 3,321,047 3,376,670 3,145,865 230,805 Public protection: County Clerk 306,960 306,960 299,161 7,799 Recorder 97,958 97,958 96,993 965 Surveyor / Engineer 20,000 20,000 10,509 9,491 Grand Jury 11,787 11,787 8,437 3,350 District Attorney 256,941 258,241 249,967 8,274 Public Defender 60,000 50,000 47,595 2,405 continued 69 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund Variance with For the Year Ended June 30, 2016 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Sheriff / Coroner 2,764,971 2,795,186 2,657,663 137,523 Jail 55,000 55,000 55,000 - Sheriff Grants 96,715 156,965 84,777 72,188 Communications 178,913 178,913 140,929 37,984 Probation 125,522 127,332 112,732 14,600 Bear Valley Fire Department 41,912 69,158 69,078 80 Kirkwood Fire Department 12,500 - - - East Slope Fire / EMS 235,209 243,209 234,511 8,698 Agricultural Commission 13,775 13,775 13,727 48 Planning Department 141,894 139,394 128,929 10,465 Local Agency Formation 4,014 4,014 1,432 2,582 Total Public Protection 4,424,071 4,527,892 4,211,440 316,452 Health and sanitation: County Emergency Services 82,500 82,500 76,875 5,625 Kirkwood EMS 15,338 15,338 - 15,338 Bear Valley EMS 12,511 12,511 10,911 1,600 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 10,600 10,600 9,469 1,131 Total Health and Sanitation 142,813 142,813 119,119 23,694 Public assistance: Community Development 474,957 475,342 463,972 11,370 Social Services Assistance 67,850 67,850 44,460 23,390 General Relief 3,750 3,750 - 3,750 Total Public Assistance 546,557 546,942 508,432 38,510 Education: Superintendent of Schools 60,885 60,885 59,855 1,030 Library 263,913 281,763 263,404 18,359 Total Education 324,798 342,648 323,259 19,389 Recreation and cultural services: Museum 33,432 41,582 36,020 5,562 Transfers to other funds: General Contribution 2,591,238 2,643,315 400,803 2,242,512 Total Charges to Appropriations 11,383,956 11,621,862 8,744,938 2,876,924 BUDGETARY FUND BALANCE, JUNE 30 5,422,192 $ 5,324,247 $ 7,000,528 $ 1,676,281 $ 70 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2016 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 15,745,466 $ 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 (6,600,799) Revenues from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes 198,488 A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes (478,328) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,024,185) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 7,840,642 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 8,744,938 $ 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 102,391 The County does not include the deposit held by the claims administrator for budgetary purposes (38,914) 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 (478,328) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (400,803) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 7,929,284 $ 71 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund Variance with For the Year Ended June 30, 2016 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 1,821,922 $ 1,821,922 $ 1,821,922 $ - $ RESOURCES (inflows): Licenses and permits 900 900 860 (40) Fines, forfeitures and penalties 700 700 1,200 500 Use of money and property 3,400 3,400 132,060 128,660 Intergovernmental 2,425,677 2,425,677 918,343 (1,507,334) Charges for services 390,000 390,000 398,490 8,490 Other revenues - - 383 383 Sale of assets - - 33,930 33,930 Transfers from other funds 32,205 32,205 7,570 (24,635) Amounts Available for Appropriation 4,674,804 4,674,804 3,314,758 (1,360,046) CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 3,271,844 3,274,094 1,692,319 1,581,775 Transfers to other funds 80,952 80,952 39,561 41,391 Total Charges to Appropriations 3,352,796 3,355,046 1,731,880 1,623,166 BUDGETARY FUND BALANCE, JUNE 30 1,322,008 $ 1,319,758 $ 1,582,878 $ 263,120 $ 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 3,314,758 $ 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 (1,821,922) Equipment rental revenue is generated intrafund and reported as a budgetary resource but eliminated for financial reporting purposes and not considered current-year revenue (110,000) Proceeds from the sale of assets are inflows of budgetary resources but are not revenues for financial reporting purposes (33,930) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (7,570) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 1,341,336 $ 72 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2016 Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,731,880 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 (110,000) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (39,561) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,582,319 $ 73 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act Variance with For the Year Ended June 30, 2016 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 6,403,186 $ 6,403,186 $ 6,403,186 $ - $ RESOURCES (inflows): Use of money and property - - 39,111 39,111 Intergovernmental 1,290,000 1,290,000 1,445,960 155,960 Other revenues - - - - Amounts Available for Appropriation 7,693,186 7,693,186 7,888,257 195,071 CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,484,400 1,572,054 1,417,989 154,065 Transfers out to other funds 890,851 890,851 6,000 884,851 Total Charges to Appropriations 2,375,251 2,462,905 1,423,989 1,038,916 BUDGETARY FUND BALANCE, JUNE 30 5,317,935 $ 5,230,281 $ 6,464,268 $ 1,233,987 $ 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 7,888,257 $ 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 (6,403,186) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,485,071 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,423,989 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (6,000) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,417,989 $ 74 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund Variance with For the Year Ended June 30, 2016 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 5,646,490 $ 5,646,490 $ 5,646,490 $ - $ RESOURCES (inflows): Use of money and property 6,500 6,500 41,923 35,423 Intergovernmental 1,681,300 1,681,300 2,146,060 464,760 Transfer in 53,000 253,000 200,000 (53,000) Amounts Available for Appropriation 7,387,290 7,587,290 8,034,473 447,183 CHARGES TO APPROPRIATIONS (outflows) Public protection 55,071 105,071 41,121 63,950 Transfers out to other funds 1,830,994 1,946,494 546,763 1,399,731 Total Charges to Appropriations 1,886,065 2,051,565 587,884 1,463,681 BUDGETARY FUND BALANCE, JUNE 30 5,501,225 $ 5,535,725 $ 7,446,589 $ 1,910,864 $ 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 8,034,473 $ 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 (5,646,490) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (200,000) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 2,187,983 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 587,884 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (546,763) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 41,121 $ 75 ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2015 76 BUDGETARY BASIS OF ACCOUNTING In accordance with the provisions of Sections 29000 and 29143, 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--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2016 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 5,232,680 $ 453,720 $ 622,046 $ - $ 6,308,446 $ Accounts receivable 63,841 - 2,598 - 66,439 Taxes receivable 13,300 - - - 13,300 Due from other governments 413,034 - - - 413,034 Interest receivable 7,439 609 837 - 8,885 Due from other funds 231,733 - 85,348 - 317,081 Prepaid expenses 4,204 - - - 4,204 Total Assets 5,966,231 $ 454,329 $ 710,829 $ - $ 7,131,389 $ LIABILITIES Accounts payable 262,040 $ - $ 76,046 $ - $ 338,086 $ Accrued salaries and benefits 47,774 - - - 47,774 Due to other funds 195,921 - - - 195,921 Total Liabilities 505,735 - 76,046 - 581,781 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 161,285 - - - 161,285 FUND BALANCES Nonspendable 4,204 400,000 - - 404,204 Restricted 4,483,166 - 342,497 - 4,825,663 Committed 1,029,268 - 103,995 - 1,133,263 Assigned - 54,329 188,291 - 242,620 Unassigned (217,427) - - - (217,427) Total Fund Balances 5,299,211 454,329 634,783 - 6,388,323 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,966,231 $ 454,329 $ 710,829 $ - $ 7,131,389 $ 77 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2016 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 88,482 $ - $ - $ - $ 88,482 $ Licenses and permits 57,912 - - - 57,912 Fines, forfeitures and penalties 2,612 - - - 2,612 Use of money and property 48,281 1,370 25,896 - 75,547 Intergovernmental 3,037,433 - 8,200 - 3,045,633 Charges for services 961,786 - - - 961,786 Other revenues 7,321 - 53,958 - 61,279 Total Revenues 4,203,827 1,370 88,054 - 4,293,251 EXPENDITURES Current: General government 74,446 - - - 74,446 Public protection 596,775 - - - 596,775 Public ways and facilities 467,698 - - - 467,698 Health and sanitation 1,498,720 - - - 1,498,720 Public assistance 1,126,239 - - - 1,126,239 Education - - - - - Capital outlay 129,886 - 343,047 - 472,933 Debt service: Principal - - - 69,932 69,932 Interest and issuance cost - - - 42,364 42,364 Total Expenditures 3,893,764 - 343,047 112,296 4,349,107 Excess (Deficiency) of Revenues Over (Under) Expenditures 310,063 1,370 (254,993) (112,296) (55,856) OTHER FINANCING SOURCES AND USES Sale of assets - - 13,320 - 13,320 Transfers in 500,685 - 667,407 112,296 1,280,388 Transfers out (1,450,524) - - (1,450,525) Total Other Financing Sources (Uses) (949,839) - 680,726 112,296 (156,817) NET CHANGES IN FUND BALANCES (639,776) 1,370 425,733 - (212,673) Fund Balances, Beginning of Year (Restated) 5,938,987 452,959 209,050 - 6,600,996 FUND BALANCES, END OF YEAR 5,299,211 $ 454,329 $ 634,783 $ - $ 6,388,323 $ 78 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2016 State Public Environmental Mental Drug and Health Health Health Alcohol ASSETS Cash and investments 5,907 $ 31,876 $ 120,891 $ 200,924 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 66,699 - - 208,039 Interest receivable 6 41 249 211 Due from other funds 63,331 1,366 61,495 - Prepaid expenses - 725 - 2,146 Total Assets 135,943 $ 34,008 $ 182,635 $ 411,320 $ LIABILITIES Accounts payable 11,017 $ 7,741 $ 18,448 $ 9,038 $ Accrued salaries and benefits 5,064 414 3,507 6,377 Due to other funds 3,456 577 1,109 2,617 Total Liabilities 19,537 8,732 23,064 18,032 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 48,159 - - - FUND BALANCES Nonspendable - 725 - 2,146 Restricted 68,247 24,551 159,571 391,142 Committed - - - - Unassigned - - - - Total Fund Balances 68,247 25,276 159,571 393,288 Total Liabilities, Deferred Inflows of Resources and Fund Balances 135,943 $ 34,008 $ 182,635 $ 411,320 $ continued 79 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 Prop 36 Social One-Stop SACPA Services Services Tobacco ASSETS Cash and investments - $ 282,480 $ - $ 142,988 $ Accounts receivable - - 6,357 - Taxes receivable - - - - Due from other governments - 28,009 - - Interest receivable - 439 7 205 Due from other funds - 92,186 - - Prepaid expenses - 1,118 - - Total Assets - $ 404,232 $ 6,364 $ 143,193 $ LIABILITIES Accounts payable - $ 39,887 $ 89 $ 7,852 $ Accrued salaries and benefits - 18,029 1,132 2,863 Due to other funds - 11,258 1,152 3,488 Total Liabilities - 69,174 2,373 14,203 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 28,009 - - FUND BALANCES Nonspendable - 1,118 - - Restricted - 305,931 3,991 128,990 Committed - - - - Unassigned - - - - Total Fund Balances - 307,049 3,991 128,990 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 404,232 $ 6,364 $ 143,193 $ continued 80 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 Water Fish and Rights Game Building Airport ASSETS Cash and investments - $ 43,572 $ 8,018 $ 28,734 $ Accounts receivable - 101 183 - Taxes receivable - - - - Due from other governments - - - - Interest receivable - 88 25 39 Due from other funds - - - - Prepaid expenses - - 215 - Total Assets - $ 43,761 $ 8,441 $ 28,773 $ LIABILITIES Accounts payable - $ 7,119 $ 1,476 $ - $ Accrued salaries and benefits - - 4,064 - Due to other funds - - 1,108 - Total Liabilities - 7,119 6,648 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - 215 - Restricted - 36,642 1,578 28,773 Committed - - - - Unassigned - - - - Total Fund Balances - 36,642 1,793 28,773 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 43,761 $ 8,441 $ 28,773 $ continued 81 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund ASSETS Cash and investments 15,101 $ 9,226 $ 132,589 $ 628,087 $ Accounts receivable - - - 50,000 Taxes receivable - - - - Due from other governments - 16,210 19,036 - Interest receivable 20 14 195 850 Due from other funds - - - - Prepaid expenses - - - - Total Assets 15,121 $ 25,450 $ 151,820 $ 678,937 $ LIABILITIES Accounts payable - $ 1,412 $ 16,248 $ 1,260 $ Accrued salaries and benefits - 1,309 - - Due to other funds - 31,342 - 125 Total Liabilities - 34,063 16,248 1,385 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 16,210 - - FUND BALANCES Nonspendable - - - - Restricted 15,121 - 135,572 677,552 Committed - - - - Unassigned - (24,823) - - Total Fund Balances 15,121 (24,823) 135,572 677,552 Total Liabilities, Deferred Inflows of Resources and Fund Balances 15,121 $ 25,450 $ 151,820 $ 678,937 $ continued 82 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants ASSETS Cash and investments - $ 291,472 $ 355 $ 17,996 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 938 - - Interest receivable - 374 - - Due from other funds - - - - Prepaid expenses - - - - Total Assets - $ 292,784 $ 355 $ 17,996 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 3,738 - - - Total Liabilities 3,738 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 292,784 355 17,996 Committed - - - - Unassigned (3,738) - - - Total Fund Balances (3,738) 292,784 355 17,996 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 292,784 $ 355 $ 17,996 $ continued 83 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 State Law Assessor's Recorder's OES Enforcement Special Special Grants AB443 Revenue Fund Revenue Fund ASSETS Cash and investments - $ 667,367 $ 28,813 $ 78,519 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 3,813 - - Interest receivable - 1,436 38 105 Due from other funds - 10,555 - - Prepaid expenses - - - - Total Assets - $ 683,171 $ 28,851 $ 78,624 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 6,817 - - - Total Liabilities 6,817 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 683,171 28,851 78,624 Committed - - - - Unassigned (6,817) - - - Total Fund Balances (6,817) 683,171 28,851 78,624 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 683,171 $ 28,851 $ 78,624 $ continued 84 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste ASSETS Cash and investments 4,151 $ 731,277 $ 267,627 $ 41,407 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 6 931 325 46 Due from other funds - - - - Prepaid expenses - - - - Total Assets 4,157 $ 732,208 $ 267,952 $ 41,453 $ LIABILITIES Accounts payable - $ 14,307 $ - $ 2,883 $ Accrued salaries and benefits - - 1,612 - Due to other funds - - 3,326 - Total Liabilities - 14,307 4,938 2,883 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 4,157 717,901 263,014 38,570 Committed - - - - Unassigned - - - - Total Fund Balances 4,157 717,901 263,014 38,570 Total Liabilities, Deferred Inflows of Resources and Fund Balances 4,157 $ 732,208 $ 267,952 $ 41,453 $ continued 85 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs ASSETS Cash and investments - $ 127,046 $ 12,530 $ 24,795 $ Accounts receivable - - - - Taxes receivable - 13,300 - - Due from other governments 55,547 - 2,273 - Interest receivable (35) 152 17 - Due from other funds 2,800 - - - Prepaid expenses - - - - Total Assets 58,312 $ 140,498 $ 14,820 $ 24,795 $ LIABILITIES Accounts payable 21,512 $ - $ - $ 24,153 $ Accrued salaries and benefits - - - - Due to other funds 39,023 2,800 - 630 Total Liabilities 60,535 2,800 - 24,783 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 54,164 - 2,273 - FUND BALANCES Nonspendable - - - - Restricted - 137,698 12,547 12 Committed - - - - Unassigned (56,387) - - - Total Fund Balances (56,387) 137,698 12,547 12 Total Liabilities, Deferred Inflows of Resources and Fund Balances 58,312 $ 140,498 $ 14,820 $ 24,795 $ continued 86 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 Title III SNC Fire Secure Rural Court Prop. 84 Protection Schools Services Grant ASSETS Cash and investments 18,255 $ 126,350 $ 28,244 $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 22 171 32 (34) Due from other funds - - - - Prepaid expenses - - - - Total Assets 18,277 $ 126,521 $ 28,276 $ (34) $ LIABILITIES Accounts payable - $ 1,607 $ 28,158 $ 4,198 $ Accrued salaries and benefits - - - - Due to other funds 635 - - 19,485 Total Liabilities 635 1,607 28,158 23,683 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 17,642 124,914 118 - Committed - - - - Unassigned - - - (23,717) Total Fund Balances 17,642 124,914 118 (23,717) Total Liabilities, Deferred Inflows of Resources and Fund Balances 18,277 $ 126,521 $ 28,276 $ (34) $ continued 87 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 Woodstove Public Behavioral Public Replacement Health Health Safety Program Misc. Grants Misc. Grants Misc. Grants ASSETS Cash and investments 67,420 $ - $ 5,551 $ 4,960 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 12,470 - - Interest receivable 110 (47) 8 - Due from other funds - - - - Prepaid expenses - - - - Total Assets 67,530 $ 12,423 $ 5,559 $ 4,960 $ LIABILITIES Accounts payable 2,835 $ 40,800 $ - $ - $ Accrued salaries and benefits - 3,403 - - Due to other funds - 57,695 5,540 - Total Liabilities 2,835 101,898 5,540 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 12,470 - - FUND BALANCES Nonspendable - - - - Restricted 64,695 - 19 4,960 Committed - - - - Unassigned - (101,945) - - Total Fund Balances 64,695 (101,945) 19 4,960 Total Liabilities, Deferred Inflows of Resources and Fund Balances 67,530 $ 12,423 $ 5,559 $ 4,960 $ continued 88 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2016 Other Miscellaneous STPUD Grants Mitigation Total ASSETS Cash and investments 10,277 $ 1,027,875 $ 5,232,680 $ Accounts receivable 7,200 - 63,841 Taxes receivable - - 13,300 Due from other governments - - 413,034 Interest receivable - 1,393 7,439 Due from other funds - - 231,733 Prepaid expenses - - 4,204 Total Assets 17,477 $ 1,029,268 $ 5,966,231 $ LIABILITIES Accounts payable - $ - $ 262,040 $ Accrued salaries and benefits - - 47,774 Due to other funds - - 195,921 Total Liabilities - - 505,735 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 161,285 FUND BALANCES Nonspendable - - 4,204 Restricted 17,477 - 4,483,166 Committed - 1,029,268 1,029,268 Unassigned - - (217,427) Total Fund Balances 17,477 1,029,268 5,299,211 Total Liabilities, Deferred Inflows of Resources and Fund Balances 17,477 $ 1,029,268 $ 5,966,231 $ 89 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2016 State Public Environmental Mental Drug and Health Health Health Alcohol REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 10,574 252 1,700 1,530 Intergovernmental 120,407 29,920 136,177 247,819 Charges for services 74,141 62,304 - - Other revenues 311 1,831 - - Total Revenues 205,433 94,307 137,877 249,349 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 393,347 96,945 211,113 350,446 Public assistance - - - - Capital outlay - - - - Total Expenditures 393,347 96,945 211,113 350,446 Excess (Deficiency) of Revenues Over (Under) Expenditures (187,914) (2,638) (73,236) (101,097) OTHER FINANCING SOURCES (USES) Transfers in 154,458 - 5,082 - Transfers out - - (200,000) - Total Other Financing Sources (Uses) 154,458 - (194,918) - NET CHANGES IN FUND BALANCES (33,456) (2,638) (268,154) (101,097) Fund Balances, Beginning of Year 101,703 27,914 427,725 494,385 FUND BALANCES, END OF YEAR 68,247 $ 25,276 $ 159,571 $ 393,288 $ continued 90 ---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, 2016 Prop 36 Social One-Stop SACPA Services Services Tobacco REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 533 5,729 15 887 Intergovernmental - 773,208 49,645 160,128 Charges for services - - - - Other revenues - 4,983 - - Total Revenues 533 783,920 49,660 161,015 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - - - 121,595 Public assistance - 1,068,423 57,816 - Capital outlay - 54,097 - - Total Expenditures - 1,122,520 57,816 121,595 Excess (Deficiency) of Revenues Over (Under) Expenditures 533 (338,600) (8,156) 39,420 OTHER FINANCING SOURCES (USES) Transfers in - 244,704 - - Transfers out (283,603) - (7,571) (5,222) Total Other Financing Sources (Uses) (283,603) 244,704 (7,571) (5,222) NET CHANGES IN FUND BALANCES (283,070) (93,896) (15,727) 34,198 Fund Balances, Beginning of Year 283,070 400,945 19,718 94,792 FUND BALANCES, END OF YEAR - $ 307,049 $ 3,991 $ 128,990 $ continued 91 ---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, 2016 Water Fish and Rights Game Building Airport REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - 57,912 - Fines, forfeitures and penalties - 1,252 - - Use of money and property - 259 146 148 Intergovernmental - - - 10,000 Charges for services - 54,068 20,786 425 Other revenues - - 196 - Total Revenues - 55,579 79,040 10,573 EXPENDITURES Current: General government - - - - Public protection - 55,228 165,199 - Public ways and facilities - - - 5,242 Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 55,228 165,199 5,242 Excess (Deficiency) of Revenues Over (Under) Expenditures - 351 (86,159) 5,331 OTHER FINANCING SOURCES (USES) Transfers in - - 60,000 - Transfers out (5,702) - - - Total Other Financing Sources (Uses) (5,702) - 60,000 - NET CHANGES IN FUND BALANCES (5,702) 351 (26,159) 5,331 Fund Balances, Beginning of Year 5,702 36,291 27,952 23,442 FUND BALANCES, END OF YEAR - $ 36,642 $ 1,793 $ 28,773 $ continued 92 ---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, 2016 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 94 54 858 3,618 Intergovernmental - 40,092 117,000 200,002 Charges for services - - - - Other revenues - - - - Total Revenues 94 40,146 117,858 203,620 EXPENDITURES Current: General government - - - - Public protection - 45,865 102,159 14,258 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay 1,662 - - - Total Expenditures 1,662 45,865 102,159 14,258 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,568) (5,719) 15,699 189,362 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (4,300) (9,900) Total Other Financing Sources (Uses) - - (4,300) (9,900) NET CHANGES IN FUND BALANCES (1,568) (5,719) 11,399 179,462 Fund Balances, Beginning of Year 16,689 (19,104) 124,173 498,090 FUND BALANCES, END OF YEAR 15,121 $ (24,823) $ 135,572 $ 677,552 $ continued 93 ---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, 2016 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 1,745 27 29 Intergovernmental - 123,060 - - Charges for services - - - - Other revenues - - - - Total Revenues 124,805 27 29 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 124,805 27 29 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (125,396) - - Total Other Financing Sources (Uses) - (125,396) - - NET CHANGES IN FUND BALANCES (591) 27 29 Fund Balances, Beginning of Year (3,733) 293,375 328 17,967 FUND BALANCES, END OF YEAR (3,738) $ 292,784 $ 355 $ 17,996 $ continued 94 ---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, 2016 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 (11) 5,244 169 479 Intergovernmental - 500,000 - - Charges for services - - 4,243 3,591 Other revenues - - - - Total Revenues (11) 505,244 4,412 4,070 EXPENDITURES Current: General government - - 865 - Public protection - (14,185) - 6,799 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - (14,185) 865 6,799 Excess (Deficiency) of Revenues Over (Under) Expenditures (11) 519,429 3,547 (2,729) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (492,544) - - Total Other Financing Sources (Uses) - (492,544) - - NET CHANGES IN FUND BALANCES (11) 26,885 3,547 (2,729) Fund Balances, Beginning of Year (6,806) 656,286 25,304 81,353 FUND BALANCES, END OF YEAR (6,817) $ 683,171 $ 28,851 $ 78,624 $ continued 95 ---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, 2016 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste REVENUES Taxes - $ 14,931 $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - 1,360 - - Use of money and property 26 4,342 1,308 149 Intergovernmental - 349 - - Charges for services - 242,735 273,852 73,583 Other revenues - - - - Total Revenues 26 263,717 275,160 73,732 EXPENDITURES Current: General government - - - - Public protection - - 46,202 - Public ways and facilities - 246,139 - - Health and sanitation - - - 65,716 Public assistance - - - - Capital outlay - 313 - - Total Expenditures - 246,452 46,202 65,716 Excess (Deficiency) of Revenues Over (Under) Expenditures 26 17,265 228,958 8,016 OTHER FINANCING SOURCES (USES) Transfers in - 1,000 - 2,000 Transfers out - - (152,712) - Total Other Financing Sources (Uses) - 1,000 (152,712) 2,000 NET CHANGES IN FUND BALANCES 26 18,265 76,246 10,016 Fund Balances, Beginning of Year 4,131 699,636 186,768 28,554 FUND BALANCES, END OF YEAR 4,157 $ 717,901 $ 263,014 $ 38,570 $ continued 96 ---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, 2016 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs REVENUES Taxes - $ - $ - $ 73,551 $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (167) 543 71 42 Intergovernmental 111,140 125,630 3,760 - Charges for services - - - - Other revenues - - - - Total Revenues 110,973 126,173 3,831 73,593 EXPENDITURES Current: General government - - - 73,581 Public protection - - - - Public ways and facilities 166,317 50,000 - - Health and sanitation - - - - Public assistance - - - - Capital outlay 2,060 - - - Total Expenditures 168,377 50,000 - 73,581 Excess (Deficiency) of Revenues Over (Under) Expenditures (57,404) 76,173 3,831 12 OTHER FINANCING SOURCES (USES) Transfers in - 4,950 - - Transfers out - (4,950) - - Total Other Financing Sources (Uses) - - - - NET CHANGES IN FUND BALANCES (57,404) 76,173 3,831 12 Fund Balances, Beginning of Year 1,017 61,525 8,716 - FUND BALANCES, END OF YEAR (56,387) $ 137,698 $ 12,547 $ 12 $ continued 97 ---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, 2016 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 103 706 117 (67) Intergovernmental - 31,223 - 34,469 Charges for services 3,576 - - - Other revenues - - - - Total Revenues 3,679 31,929 117 34,402 EXPENDITURES Current: General government - - - - Public protection 635 12,894 28,561 53,661 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 635 12,894 28,561 53,661 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,044 19,035 (28,444) (19,259) OTHER FINANCING SOURCES (USES) Transfers in - - 28,491 - Transfers out - - - - Total Other Financing Sources (Uses) - - 28,491 - NET CHANGES IN FUND BALANCES 3,044 19,035 47 (19,259) Fund Balances, Beginning of Year 14,598 105,879 71 (4,458) FUND BALANCES, END OF YEAR 17,642 $ 124,914 $ 118 $ (23,717) $ continued 98 ---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, 2016 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 542 88 20 8 Intergovernmental - 185,137 - - Charges for services - - - - Other revenues - - - - Total Revenues 542 185,225 20 8 EXPENDITURES Current: General government - - - - Public protection 46,918 - - - Public ways and facilities - - - - Health and sanitation - 259,558 - - Public assistance - - - - Capital outlay - 71,754 - - Total Expenditures 46,918 331,312 - - Excess (Deficiency) of Revenues Over (Under) Expenditures (46,376) (146,087) 20 8 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (11,246) (5,082) - Total Other Financing Sources (Uses) - (11,246) (5,082) - NET CHANGES IN FUND BALANCES (46,376) (157,333) (5,062) 8 Fund Balances, Beginning of Year 111,071 55,388 5,081 4,952 FUND BALANCES, END OF YEAR 64,695 $ (101,945) $ 19 $ 4,960 $ continued 99 ---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, 2016 Other Miscellaneous STPUD Grants Mitigation Total REVENUES Taxes - $ - $ 88,482 $ Licenses and permits - - 57,912 Fines, forfeitures and penalties - - 2,612 Use of money and property 17 6,359 48,281 Intergovernmental 38,267 - 3,037,433 Charges for services - 148,482 961,786 Other revenues - - 7,321 Total Revenues 38,284 154,841 4,203,827 EXPENDITURES Current: General government - - 74,446 Public protection 32,581 - 596,775 Public ways and facilities - - 467,698 Health and sanitation - - 1,498,720 Public assistance - - 1,126,239 Capital outlay - - 129,886 Total Expenditures 32,581 - 3,893,764 Excess (Deficiency) of Revenues Over (Under) Expenditures 5,703 154,841 310,063 OTHER FINANCING SOURCES (USES) Transfers in - - 500,685 Transfers out - (142,296) (1,450,524) Total Other Financing Sources (Uses) - (142,296) (949,839) NET CHANGES IN FUND BALANCES 5,703 12,545 (639,776) Fund Balances, Beginning of Year 11,774 1,016,723 5,938,987 FUND BALANCES, END OF YEAR 17,477 $ 1,029,268 $ 5,299,211 $ 100 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2016 Leviathan Accumulated Markleeville Peak Capital Pipeline Vehicle Communications Outlay Prop 50 Grant Replacement Tower ASSETS Cash and investments 3,670 $ - $ 161,203 $ 69,742 $ Accounts receivable - - - - Due from other governments - - - - Interest receivable - - 216 93 Due from other funds 85,348 - - - Total Assets 89,018 $ - $ 161,419 $ 69,835 $ LIABILITIES Accounts payable 62,146 $ - $ - $ - $ Due to other funds - - - - Total Liabilities 62,146 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Restricted - - - 69,835 Committed - - - - Assigned 26,872 - 161,419 - Unassigned - - - - Total Fund Balances 26,872 - 161,419 69,835 Total Liabilities, Deferred Inflows of Resources and Fund Balances 89,018 $ - $ 161,419 $ 69,835 $ continued 101 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2016 Inter Alpine Communications MHSA County Capital Capital Government Maintenance Facility Center Total ASSETS Cash and investments 115,141 $ 272,290 $ - $ 622,046 $ Accounts receivable 2,598 - - 2,598 Due from other governments - - - - Interest receivable 156 372 - 837 Due from other funds - - - 85,348 Total Assets 117,895 $ 272,662 $ - $ 710,829 $ LIABILITIES Accounts payable 13,900 $ - $ - $ 76,046 $ Due to other funds - - - - Total Liabilities 13,900 - - 76,046 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Fund Balances: Restricted - 272,662 - 342,497 Committed 103,995 - - 103,995 Assigned - - - 188,291 Unassigned - - - - Total Fund Balances 103,995 272,662 - 634,783 Total Liabilities, Deferred Inflows of Resources and Fund Balances 117,895 $ 272,662 $ - $ 710,829 $ 102 ---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, 2016 Leviathan Accumulated Markleeville Peak Capital Pipeline Vehicle Communications Outlay Prop 50 Grant Replacement Tower REVENUES Use of money and property 6 $ - $ 893 $ 429 $ Fines, forfeitures and penalties - - - - Intergovernmental 8,200 - - - Other revenues - - - - Total Revenues 8,206 - 893 429 EXPENDITURES Capital outlay 222,986 - 38,691 - Total Expenditures 222,986 - 38,691 - Excess (Deficiency) of Revenues Over (Under) Expenditures (214,780) - (37,798) 429 OTHER FINANCING SOURCES (USES) Sale of Assets - - 13,320 - Transfers in 253,081 1,990 64,862 - Transfers out - - - - Total Other Financing Sources (Uses) 253,081 1,990 78,182 - NET CHANGES IN FUND BALANCES 38,301 1,990 40,384 429 Fund Balances, Beginning of Year, as restated (11,429) (1,990) 121,035 69,406 FUND BALANCES, END OF YEAR 26,872 $ - $ 161,419 $ 69,835 $ continued 103 ---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, 2016 Inter Alpine Communications MHSA County Capital Capital Government Maintenance Facility Center Total REVENUES Use of money and property 23,390 $ 1,178 $ - $ 25,896 $ Fines, forfeitures and penalties - - - - Intergovernmental - - - 8,200 Other revenues 53,958 - - 53,958 Total Revenues 77,348 1,178 - 88,054 EXPENDITURES Capital outlay 63,251 18,120 343,047 Total Expenditures 63,251 18,120 343,047 Excess (Deficiency) of Revenues Over (Under) Expenditures 14,097 (16,942) 1 (254,993) OTHER FINANCING SOURCES (USES) Sale of Assets - - - 13,320 Transfers in - 289,604 57,870 667,407 Transfers out - - Total Other Financing Sources (Uses) - 289,604 57,869 680,726 NET CHANGES IN FUND BALANCES 14,097 272,662 57,870 425,733 Fund Balances, Beginning of Year, as restated 89,898 - (57,870) 209,050 FUND BALANCES, END OF YEAR 103,995 $ 272,662 $ - $ 634,783 $ 104