Document alpinecountyca_gov_doc_8a324a0476

COUNTY OF ALPINE, CALIFORNIA ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2019 ---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 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 29-62 Required Supplementary Information: County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability 63 County Pension Plan – Schedule of Contributions 63 County OPEB Plan - Schedule of Changes in net OPEB Liability and Related Ratios 64 Budgetary Comparison Schedules: General Fund 65-67 Road Fund 68-69 Mental Health Services Act 70 Realignment Fund 71 Social Services Fund 72 Note to Required Supplementary Information 73 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Combining Balance Sheet 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 75 Nonmajor Special Revenue Funds: Combining Balance Sheet 76-85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 86-95 Nonmajor Capital Projects Funds: Combining Balance Sheet 96-97 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 98-99 ---PAGE BREAK--- 1 INDEPENDENT AUDITOR’S REPORT To the Board of Supervisors of the County of Alpine Markleeville, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County of Alpine, California (the “County”), as of and for the year ended June 30, 2019, 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”), 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal 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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County of Alpine, California, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4-17, County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability and County Pension Plan – Schedule of Contributions on page 63, County OPEB Plan Schedule of Changes in Net OPEB Liability and Related Ratios on page 64, and Budgetary Comparison Schedules on pages 65-73 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 introductory section, 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 and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. ---PAGE BREAK--- 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2020, on our consideration of the County of Alpine, California’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Clovis, California March 31, 2020 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 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, 2019. 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 $27,678,531 (net position). Unrestricted net position which normally is discretionary and available to meet ongoing obligations to citizens and creditors had a deficit of $13,917,611. $24,944,664 is restricted and must be used only for specific purposes and $16,651,478 is invested in capital assets, net of related debt. • As of June 30, 2019, the County’s governmental funds reported combined fund balances of $32,611,430, a decrease of $1,052,654 due to increased expenditures in all functions except education and an increase in capital outlay expenditures on the MHSA Wellness Center, while revenues remained consistent. • Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 92.53% of ending fund balance. Of this amount, $22,197,264 is restricted by law or externally imposed requirements, $1,307,217 is committed for specific purposes, $3,725,380 is assigned for specific purposes based on the intent of the Board of Supervisors, including $1,000,000 set aside as the County’s general reserve for emergencies and the remaining $2,945,548 is unassigned. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $3,083,326, or 34.40% of total General Fund expenditures, is available for spending towards operations in subsequent years. • The County’s capital asset balances increased by $971,712 or 5.88% over the prior fiscal year. The increase results from new purchases of $606,766 and construction additions of $1,550,174 offset by $97,957 in construction projects that were completed and depreciation of $1,087,271. • The County’s long-term liabilities increased by $3,667,550 or 14.32% during the current fiscal year. Increases of $3,418,864 in other post-employment benefits (OPEB) liability, $533,347 in the claims liability and $50,928 in compensated absences were offset by a decrease of $257,410 in net pension liability and a decrease of $78,179 in the capital lease. The large increase in OPEB was due to a difference between expected and actual experience creating a deferred outflow of resources to be allocated over the next eight years. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 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, 2019 6 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on how cash and other financial assets can readily be converted to available resources and the balances left at year-end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the County’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains several individual governmental funds organized according to their type (special revenue, permanent, debt service and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the Road Fund, the Mental Health Services Act Fund, the Realignment Fund, the Social Services Fund, and the MHSA Capital Facility 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, 2019 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 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, 2019 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary of Net Position As of June 30, 2019 and 2018 (in thousands) As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets and deferred outflows exceeded liabilities and deferred inflows by $27.7 million at the close of the most recent fiscal year, decreasing $0.9 million, or 3.3% 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 $0.19 million, or 0.8%. All of the increase is the accumulation of resources in the Realignment funds. The next largest portion of the County’s net position is its net investment in capital assets land, infrastructure, buildings and improvements and machinery and equipment), less any related outstanding debt used to acquire those assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Unrestricted net position decreased by $2.2 million primarily because of a $4.0 million increase in expenses spread among all functions offset by $0.4 million increase in primarily interest income. At the end of the current fiscal year, the County reported positive balances in two of the three categories of net position. The County’s sole business-type activity ended the year in a negative net position due to transit expenses exceeding program revenues. Governmental Activities Business-Type Activities Total 2019 2018 2019 2018 2019 2018 Assets: Current and other assets $ 35,204 $ 35,462 $ 94 $ 85 $ 35,298 $ 35,547 Capital assets, net 17,459 16,474 44 57 17,503 16,531 Total assets 52,663 51,936 138 142 52,801 52,078 Deferred Outflows 6,483 4,188 21 20 6,504 4,208 Liabilities: Current and other liabilities 1,266 950 94 97 1,360 1,047 Long-term liabilities 29,211 25,554 73 63 29,284 25,617 Total liabilities 30,477 26,504 167 160 30,644 26,664 Deferred Inflows 977 1,001 5 4 982 1,005 Net Position: Net Investment in capital assets 16,608 15,544 44 57 16,652 15,601 Restricted net position 24,945 24,753 - - 24,945 24,753 Unrestricted net position (13,861) (11,678) (57) (59) (13,918) (11,737) Total net position $ 27,692 $ 28,619 $ (13) $ $ 27,679 $ 28,617 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 9 The following table shows the changes in net position for governmental and business-type activities. Changes in Net Position Year ended June 30, 2019 and 2018 (in thousands) Governmental Activities Business-Type Activities Total 2019 2018 2019 2018 2019 2018 Revenues: Program revenues: Charges for services $ 1,681 $ 1,923 $ 13 $ 6 $ 1,694 $ 1,929 Operating grants and contributions 9,633 9,571 91 106 9,724 9,677 Capital grants and contributions - - - - - - General revenues: - - Property taxes 5,516 5,471 - - 5,516 5,471 Sales taxes 316 395 - - 316 395 Other taxes 785 751 - - 785 751 Unrestricted investment earnings 821 336 1 - 822 336 Non-program grant revenues 218 222 - - 218 222 Gain on sale of assets 151 - - - 151 - Total revenues 19,121 18,669 105 112 19,226 18,781 Expenses: General government 4,767 3,548 - - 4,767 3,548 Public protection 5,720 5,694 - - 5,720 5,694 Public ways and facilities 2,083 1,669 - - 2,083 1,669 Health and sanitation 5,193 3,444 - - 5,193 3,444 Public assistance 1,804 1,644 - - 1,804 1,644 Education 350 364 - - 350 364 Recreation 97 87 - - 97 87 Interest on long-term debt 34 37 - - 34 37 Alpine County Transit - - 116 113 116 113 Total expenses 20,048 16,487 116 113 20,164 16,600 Change in net position (927) 2,182 (11) (938) 2,181 Net position at beginning of year 28,619 36,486 28,617 36,485 Restatements - (10,049) - - - (10,049) Net position at end of the year $ 27,692 $ 28,619 $ (13) $ $ 27,679 $ 28,617 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 10 Expenses and Program Revenues – Governmental Activities Year ended June 30, 2019 (in thousands) 0 1000 2000 3000 4000 5000 6000 7000 Program Revenues Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 11 Revenues by Source – Governmental Activities Year ended June 30, 2019 Analysis of Revenues The County’s revenues increased by $431,470 or 2.31%. Significant changes from last fiscal year are summarized below: • Minor decreases in many charges for services resulted in a combined decrease of approximately $18,776 over the prior year. • SNC Prop 1 state grant funding decreased $123,325 from prior year. • Interest earnings increased by $485,120 over the prior year. • Realignment funding increased by $37,002 over the prior year. • State Exchange Matching road funds increased $216,054 over the prior year. • State SB1 road funds increased $245,205 over the prior year. • Gain on sale of assets resulted in an increase of $150,551 over the prior year. • Federal funds used for health services decreased $471,410 from the prior year. This decrease was due to a $385,766 decrease in drug & alcohol grant funding and an $85,644 decrease in FFP benefit services funding over prior year. • Federal funds used for law enforcement/emergency services decreased $146,084. This decrease was due to a $146,084 decrease in the OES/FEMA contribution from prior 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. Charges for services 8.79% Operating grants and contributions 50.38% Capital grants and contributions 0.00% Property taxes 28.85% Sales taxes 1.65% Other taxes 4.11% Unrestricted investment earnings 4.29% Non-program grant revenues 1.14% Gain on sale of assets 0.79% Revenues ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 12 Tax revenues (property, sales, transient occupancy and other taxes) were essentially the same as the prior year. Property tax increased $44,986 in the current year. The General Fund’s property tax receivable grew by about 14.42% from $321,997 at June 30, 2018 to $368,442 at June 30, 2019. Expenses by Function/Program Year ended June 30, 2019 Analysis of Expenses The County’s expenses increased by $3,560,922, or 21.60%. Significant changes from last fiscal year are summarized below: • Salary costs increased $175,507. This increase is due to step and COLA increases. • Overtime costs were $87,449 more than the prior year. • Certain employee benefits including health insurance and retirement contributions were $155,062 more due to filling vacancies, increased medical premiums and higher retirement unfunded actuarial liability and contribution rates. • Snow removal services increased $268,303 from the prior year. • Miscellaneous professional services were $169,607 more than the prior year. • Self-insurance costs decreased $314,812 over the prior year. • Return of Tobacco and Mental Health Services Act funding was $1,535,478 more than prior year. • OPEB costs were $471,644 more than the prior year. • Pension expense was $138,873 less than the prior year. • MHSA Wellness Center capital outlay increased $1,097,680 over the prior year. General government 23.78% Public protection 28.53% Public ways and facilities 10.39% Health and sanitation 25.90% Public assistance 9.00% Education 1.75% Recreation 0.48% Interest on long- term debt 0.17% Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 13 Business-type activities The County operates only one business-type activity, the Alpine County Transit Service. Transit closed the year with a negative net position. This is mostly attributable to the non-recognition of an additional $93,020 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 increased $7,025 over last year while expenses were $3,366 more, due to increased salaries and benefits. Governmental Funds As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. At June 30, 2019, the County’s governmental funds reported combined ending fund balances of $32,611,430, a decrease of $1,052,654 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, $2,436,021, 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 $1,721,056 held by Trindel, the County’s insurance claims processor. Nonspendable fund balance also includes $473,691 representing the corpus portion of the County’s one permanent fund. • Restricted fund balance, $22,197,264, 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 - $3,408,110 o Realignment funding - $11,580,392 o Restricted to road maintenance and improvement - $1,426,990 o Community Corrections Performance Incentives - $1,380,595 o County Service Area No. 1 - $657,289 o AB443 Enhancing Law Enforcement Activities - $813,258 • Committed fund balance, $1,307,217, 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. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 14 • Assigned fund balance, $3,725,380, 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 $1,335,054 anticipated for funding next fiscal year’s General Fund shortfall in revenues, $1,000,000 set aside as a general reserve to provide funding in case of emergencies, $525,110 set aside for unfunded other postemployment liabilities, $380,300 intended to pay the County’s MOU with the Courts and also any future facility improvements to the Courthouse building and $278,139 set aside for capital replacement and on- going capital projects. • Unassigned fund balance, $2,945,548 represents the residual classification for the General Fund netted against deficit balances in other governmental funds. General Fund The General Fund is the primary operating fund of the County which accounts for core functions that include: administration, finance, assessor, clerk, district attorney, probation and sheriff. Approximately 79%, or $6,874,961, of the General Fund’s fund balance is available to meet the County’s current and future needs. With the approval of the Board of Supervisors, County management can earmark a portion of fund balance to a particular function, project or activity, and can also earmark it for purposes beyond the current year, within the constraints applied to the various categories of fund balance. With the exception of the nonspendable portion, fund balances are available for appropriation at any time. During the year, unassigned fund balance in the General Fund increased by $198,096, or 6.9% over last year’s balance. As a measure of the General Fund’s liquidity, it is useful to compare both total fund balance and spendable fund balance to total General Fund expenditures. Total fund balance is approximately 97% of total General Fund expenditures and spendable fund balance is approximately 77%. Both measures are more favorable when compared to the prior year (93% and 75%, respectively for the prior year). This generally is because total expenditures increased $289,530 over the prior year while total other financing sources/(uses) increased $423,610, total fund balance increased $567,313 and spendable fund balance increased $340,872. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 15 Below is a chart showing General Fund surplus (deficit) for the past five years. Other Governmental Funds The Road Fund completed the year with an increase in fund balance of $150,593. 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. Although increased revenues were received in the current year, this status quo strategy will continue as long as necessary until a much needed legislative fix from the State is enacted. The Mental Health Services Act fund experienced a decrease in fund balance of $2,746,484. This fund is funded with revenues generated from the passage of Proposition 63. The resources are used to support County mental health programs. Although funding allocations received from the State increased this year, some components of this fund’s activities which were delayed in previous years were incurred in the current year. The capital facility component included in the County’s MHSA three-year plan was set aside to finance a new MHSA Wellness Center, for which construction preparations began in the prior year and are expected to be completed the subsequent fiscal year. The Realignment Fund realized an increase in fund balance of $943,468. 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. ($200,000) ($100,000) $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Surplus (Deficit) ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 16 The Social Services Fund experienced a decrease in fund balance of $178,288. Social Services revenues are used to support County social service programs. The MHSA Capital Facility Fund experienced a decrease in fund balance of $107,618. This fund is being used to build the new MHSA Wellness Center, which is expected to be completed next fiscal year. Funding for this facility is coming from the MHSA Fund. As compared with the prior year, the total fund balances of the remaining governmental funds increased $318,362, or The increase is due to the mental health fund, which increased $182,980 and the cc perf incentives fund, which increased $180,538 due to a decrease in 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 $40,843, or 0.3% from the original budget adopted in September 2018. Most of the increase resulted from increased transfers in. Total appropriations increased by $53,050, or 0.4%, and this increase was the result of an increase in General Contributions. Actual revenues were less than the amount budgeted by $2,493,926, or 12.2%. This shortfall is due to $1,860,684 worth of transfers in not received and $1,638,073 worth of charges for services eliminated with expenditures for indirect costs and self insurance expenditures offset primarily by an increase in tax revenues of $527,378. 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 $4,915,649, or 34.6% of final budgeted appropriations. Differences between the final budget and actual amounts are mostly the result of cost savings but also include delays experienced when scheduled projects funded by the general fund did not occur as anticipated, the elimination of indirect costs and self insurance expenditures and $1,852,062 in General Fund contributions that were delayed or cancelled. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2019 totaled $17.5 million. Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads and bridges. The total net increase (including the effect of depreciation) in the County’s capital assets for the current fiscal year was $971,712. Major capital asset additions during the current fiscal year included: • Vehicles and equipment - $530,426 • Structures and improvements - $76,340 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2019 17 Debt Administration At the end of the current fiscal year, the County had total long-term liabilities outstanding of $29,284,246, an increase of $3,667,550 from the prior year. This increase is due primarily to a $3,418,864 increase in Net OPEB Liability compared to the prior year. A comparison of each type of liability and its balance from last year to this year, along with a reason for the change is as follows: Additional information on the County’s long-term liabilities is in Note 5 to the basic financial statements. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Alpine County Finance Department at P.O. Box 266, Markleeville, California 96120. 2019 2018 Changes Capital leases payable $ 851,157 $ 929,336 $ (78,179) scheduled payment Net OPEB liability 15,019,029 11,600,165 3,418,864 pay-as-you go funded Net pension liability 11,529,473 11,786,883 (257,410) contributions and other adjustments Compensated absences 624,167 573,239 50,928 net paid absences Estimated Liability for claims costs 1,260,420 727,073 533,347 increased anticipated claims $ 29,284,246 $ 25,616,696 $ 3,667,550 ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS ---PAGE BREAK--- See accompanying notes to the basic financial statements. 18 COUNTY OF ALPINE Discrete Statement of Net Position Component Unit June 30, 2019 Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 30,171,379 $ 45,992 $ 30,217,371 $ 316,510 $ Accounts receivable 20,128 98 20,226 - Taxes receivable 558,032 - 558,032 - Due from other governments 2,362,641 48,000 2,410,641 68,605 Interest receivable 192,004 292 192,296 - Prepaid expense 4,557 - 4,557 3,824 Deposits 1,721,056 - 1,721,056 - Inventories 173,917 - 173,917 - Interfund balances - - - - Capital assets: Nondepreciable 3,934,333 - 3,934,333 - Depreciable, net 13,524,581 43,721 13,568,302 - Total Assets 52,662,628 138,103 52,800,731 388,939 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 3,132,463 21,221 3,153,684 - OPEB adjustments 3,350,260 - 3,350,260 - Total Deferred Outflows of Resources 6,482,723 21,221 6,503,944 - LIABILITIES Accounts payable 873,090 36 873,126 719 Accrued salaries and benefits 246,399 1,078 247,477 - Accrued interest payable 2,660 - 2,660 - Due to other government 121,140 - 121,140 - Unearned revenue 22,519 93,020 115,539 - Long-term liabilities: Due within one year: Compensated absences 312,084 - 312,084 - Capital leases 81,138 - 81,138 - Estimated liability for claims costs 1,260,420 - 1,260,420 - Due after one year: Compensated absences 312,083 - 312,083 - Capital leases 770,019 - 770,019 - Other post-employment benefits 15,019,029 - 15,019,029 - Net pension liability 11,456,019 73,454 11,529,473 - Total Liabilities 30,476,600 167,588 30,644,188 719 DEFERRED INFLOWS OF RESOURCES Pension adjustments 504,565 4,857 509,422 - OPEB adjustments 472,534 - 472,534 - Total Deferred Inflows of Resources 977,099 4,857 981,956 - NET POSITION Net investment in capital assets 16,607,757 43,721 16,651,478 - Restricted 24,944,664 - 24,944,664 388,220 Unrestricted (13,860,769) (56,842) (13,917,611) - Total Net Position 27,691,652 $ (13,121) $ 27,678,531 $ 388,220 $ ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2019 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 4,766,547 $ 663,676 $ 24,753 $ - $ Public protection 5,719,819 752,498 2,201,402 - Public ways and facilities 2,083,598 26,665 1,731,492 - Health and sanitation 5,193,287 210,461 3,337,797 - Public assistance 1,804,093 27,108 2,335,257 - Education 349,746 463 2,760 - Recreation and culture 96,715 - - - Interest on long-term debt 33,873 - - - Total Governmental Activities 20,047,678 1,680,871 9,633,461 - Business-Type Activities Alpine Transit Service 115,850 12,395 91,146 - Total Primary Government 20,163,528 $ 1,693,266 $ 9,724,607 $ - $ Component Unit: Alpine County Children and and Families Commission 190,285 $ - $ 275,000 $ - $ 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 Gain on sale of assets 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: (4,078,118) $ - $ (4,078,118) $ General government (2,765,919) - (2,765,919) Public protection (325,441) - (325,441) Public ways and facilities (1,645,029) - (1,645,029) Health and sanitation 558,272 - 558,272 Public assistance (346,523) - (346,523) Education (96,715) - (96,715) Recreation and culture (33,873) - (33,873) Interest on long-term debt (8,733,346) - (8,733,346) Total Governmental Activities Business-Type Activities - (12,309) (12,309) Alpine Transit Service (8,733,346) (12,309) (8,745,655) Total Primary Government Component Unit: Alpine County Children and 84,715 $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 5,515,844 - 5,515,844 - Property taxes 315,996 - 315,996 - Sales and use taxes 750,498 - 750,498 - Transient occupancy taxes 34,361 - 34,361 - Other taxes Grants and other governmental revenues 217,925 - 217,925 - not restricted to specific programs 820,559 1,016 821,575 5,390 Unrestricted investment earnings 150,551 - 150,551 - Gain on sale of assets 7,805,734 1,016 7,806,750 5,390 Total General Revenues (927,612) (11,293) (938,905) 90,105 CHANGES IN NET POSITION 28,619,264 (1,828) 28,617,436 298,115 Net Position, Beginning of Year 27,691,652 $ (13,121) $ 27,678,531 $ 388,220 $ NET POSITION, END OF YEAR ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2019 Mental General Road Health Realignment Fund Fund Services Act Fund ASSETS Cash and investments 6,555,929 $ 1,410,083 $ 3,286,490 $ 11,296,066 $ Accounts receivable 17,508 2,129 - - Taxes receivable 524,249 - - - Due from other governments 412,388 77,666 189,014 387,781 Interest receivable 49,034 7,650 27,424 62,728 Prepaid expenses 2,592 - 750 - Deposits 1,721,056 - - - Inventories - 173,917 - - Due from other funds 261,386 - - - Advance to other funds 60,000 - - - Total Assets 9,604,142 $ 1,671,445 $ 3,503,678 $ 11,746,575 $ LIABILITIES Accounts payable 197,463 $ 25,607 $ 71,272 $ 535 $ Accrued salaries and benefits 155,990 14,587 23,546 1,901 Due to other government 121,140 - - - Due to other funds 1,735 - - 97,390 Advance from other funds - 30,000 - - Unearned revenues 2,401 344 - - Total Liabilities 478,729 70,538 94,818 99,826 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 466,804 - - 66,357 FUND BALANCES Nonspendable 1,783,648 173,917 750 - Restricted 402,166 1,426,990 3,408,110 11,580,392 Committed - - - - Assigned 3,389,469 - - - Unassigned 3,083,326 - - - Total Fund Balances 8,658,609 1,600,907 3,408,860 11,580,392 Total Liabilities, Deferred Inflows of Resources and Fund Balances 9,604,142 $ 1,671,445 $ 3,503,678 $ 11,746,575 $ See the accompany notes to the basic financial statements. 20 ---PAGE BREAK--- MHSA Social Capital Other Services Facility Governmental Total ASSETS 1,356 $ 516,891 $ 7,104,564 $ 30,171,379 $ Cash and investments - - 491 20,128 Accounts receivable - - 33,783 558,032 Taxes receivable 410,191 - 885,601 2,362,641 Due from other governments 151 4,586 40,431 192,004 Interest receivable 113 - 1,102 4,557 Prepaid expenses - - - 1,721,056 Deposits - - - 173,917 Inventories 71,330 - 59,625 392,341 Due from other funds - - 2,800 62,800 Advance to other funds 483,141 $ 521,477 $ 8,128,397 $ 35,658,855 $ Total Assets LIABILITIES 47,754 $ 362,399 $ 168,060 $ 873,090 $ Accounts payable 16,325 - 34,050 246,399 Accrued salaries and benefits - - - 121,140 Due to other government - - 293,216 392,341 Due to other funds - - 32,800 62,800 Advance from other funds - - 19,773 22,518 Unearned revenues 64,079 362,399 547,899 1,718,288 Total Liabilities DEFERRED INFLOWS OF RESOURCES 410,191 - 385,785 1,329,137 Unavailable revenues FUND BALANCES 113 - 477,593 2,436,021 Nonspendable 8,758 159,078 5,211,770 22,197,264 Restricted - - 1,307,217 1,307,217 Committed - - 335,911 3,725,380 Assigned - - (137,778) 2,945,548 Unassigned 8,871 159,078 7,194,713 32,611,430 Total Fund Balances Total Liabilities, Deferred Inflows 483,141 $ 521,477 $ 8,128,397 $ 35,658,855 $ of Resources and Fund Balances ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 21 COUNTY OF ALPINE Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds June 30, 2019 Fund balance - total governmental funds 32,611,430 $ 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 66,655,219 $ Less: accumulated depreciation (49,196,305) 17,458,914 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 1,329,136 Deferred outflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 6,482,723 Deferred inflows of resources in governmental activities does not require the use of financial resources and, therefore, are not reported in the governmental funds (977,099) 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 (1,260,420) Capital leases (851,157) Compensated absences (624,167) Other post-employment benefits (15,019,029) Net pension liability (11,456,019) Accrued interest payable (2,660) Net position of governmental activities 27,691,652 $ ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2019 Mental General Road Health Realignment Fund Fund Services Act Fund REVENUES Taxes 6,231,378 $ - $ - $ - $ Licenses and permits 26,839 630 - - Fines, forfeitures and penalties 332,008 412 - - Use of money and property 209,634 35,684 139,412 270,885 Intergovernmental 977,947 1,505,361 1,535,613 2,343,753 Charges for services 721,843 389,808 - - Other revenues 151,087 433 - - Total Revenues 8,650,736 1,932,328 1,675,025 2,614,638 EXPENDITURES Current: General government 2,587,156 - - - Public protection 4,846,306 - - 130,475 Public ways and facilities 78,131 1,429,308 - - Health and sanitation 220,623 - 3,130,447 - Public assistance 551,019 - - - Education 381,494 - - - Recreation and cultural services 50,731 - - - Capital outlay 248,362 284,525 71,699 36,300 Debt service: Principal - - - - Interest and issuance cost - - - - Total Expenditures 8,963,822 1,713,833 3,202,146 166,775 Excess (Deficiency) of Revenues Over (Under) Expenditures (313,086) 218,495 (1,527,121) 2,447,863 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets 150,551 4,500 - - Transfers in 1,067,852 1,258 - - Transfers out (338,004) (73,660) (1,219,363) (1,504,395) Total Other Financing Sources and (Uses) 880,399 (67,902) (1,219,363) (1,504,395) NET CHANGES IN FUND BALANCES 567,313 150,593 (2,746,484) 943,468 Fund Balances, Beginning of Year, As Restated 8,091,296 1,450,314 6,155,344 10,636,924 FUND BALANCES, END OF YEAR 8,658,609 $ 1,600,907 $ 3,408,860 $ 11,580,392 $ 22 See the accompanying notes to the basic financial statements. ---PAGE BREAK--- MHSA Social Capital Other Services Facility Governmental Total REVENUES - $ - $ 339,681 $ 6,571,059 $ Taxes - - 66,837 94,306 Licenses and permits - - 1,842 334,262 Fines, forfeitures and penalties 2,767 10,336 217,117 885,835 Use of money and property 572,441 - 2,475,680 9,410,795 Intergovernmental - - 595,081 1,706,732 Charges for services 19,252 - 157,876 328,648 Other revenues 594,460 10,336 3,854,114 19,331,637 Total Revenues EXPENDITURES Current: - - 71,463 2,658,619 General government - - 557,447 5,534,228 Public protection - - 690,034 2,197,473 Public ways and facilities - - 2,138,596 5,489,666 Health and sanitation 1,294,899 - - 1,845,918 Public assistance - - - 381,494 Education - - - 50,731 Recreation and cultural services 63,733 1,337,317 226,981 2,268,917 Capital outlay Debt service: - - 78,179 78,179 Principal - - 34,117 34,117 Interest and issuance cost 1,358,632 1,337,317 3,796,817 20,539,342 Total Expenditures Excess (Deficiency) of Revenues Over (764,172) (1,326,981) 57,297 (1,207,705) (Under) Expenditures OTHER FINANCING SOURCES (USES) - - - 155,051 Gain/(loss) on sale of capital assets 589,836 1,219,363 1,352,377 4,230,686 Transfers in (3,952) - (1,091,312) (4,230,686) Transfers out 585,884 1,219,363 261,065 155,051 Total Other Financing Sources and (Uses) (178,288) (107,618) 318,362 (1,052,654) NET CHANGES IN FUND BALANCES 187,159 266,696 6,876,351 33,664,084 Fund Balances, Beginning of Year, As Restated 8,871 $ 159,078 $ 7,194,713 $ 32,611,430 $ FUND BALANCES, END OF YEAR ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 23 COUNTY OF ALPINE Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended June 30, 2019 Net change to fund balance - total governmental funds (1,052,654) $ 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 2,058,983 Less: current year depreciation (1,073,979) 985,004 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 174,014 OPEB contributions made subsequent to the measurement date is an expenditure in the governmental funds, but reported as a deferred outflow of resources in the government-wide financial statements (29,003) Unavailable revenues are reported as deferred inflows of resources in the governmental funds, but are recognized as revenues in the statement of activities 478,522 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 78,179 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 244 Change in compensated absences (50,928) Change in estimated liability for claims costs (533,347) (584,031) 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 (467,827) Changes to net OPEB liability and OPEB related deferred outflows or inflows of resources do not provide or require the use of current financial resources and therefore are not reported as expenditures in governmental funds (509,816) Change in net position of governmental activities (927,612) $ Amounts reported for governmental activities in the statement of activities are different because: ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 24 COUNTY OF ALPINE Statement of Net Position Proprietary Funds - Alpine Transit Service June 30, 2019 ASSETS Current Assets: Cash and investments 45,992 $ Accounts receivable 98 Due from other governments 48,000 Interest receivable 292 Total Current Assets 94,382 Non-Current Assets: Equipment, net of accumulated depreciation 43,721 Total Assets 138,103 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 21,221 21,221 LIABILITIES Current Liabilities: Accounts payable 36 Accrued salaries and benefits 1,078 Unearned revenue 93,020 Total Current Liabilities 94,134 Noncurrent Liabilities: Net pension liability 73,454 Total Liabilities 167,588 DEFERRED INFLOWS OF RESOURCES Pension adjustments 4,857 4,857 NET POSITION Net investment in capital assets 43,721 Unrestricted (56,842) Total Net Position (13,121) $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 25 COUNTY OF ALPINE Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2019 OPERATING REVENUES Passenger fares 12,395 $ OPERATING EXPENSES Salaries and benefits 72,146 Adminstrative 15,794 Fuel and vehicle maintenance 13,767 Insurance 851 Depreciation 13,292 Total Operating Expenses 115,850 OPERATING INCOME (LOSS) (103,455) NON-OPERATING REVENUES (EXPENSES) Federal Transit Administration operating grant 48,000 Local Transportation Fund allocation 43,146 Interest 1,016 Total Non-Operating Revenues (Expenses) 92,162 CHANGE IN NET POSITION (11,293) Net Position, Beginning of Year (1,828) NET POSITION, END OF YEAR (13,121) $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 26 COUNTY OF ALPINE Statement of Cash Flows Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2019 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 12,309 $ Cash paid to employees (61,754) Cash paid to suppliers for goods and services (30,568) Net Cash Used by Operating Activities (80,013) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments 773 Net Cash Provided by Investment Activities 773 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 122,986 Net Cash Provided by Noncapital Financing Activities 122,986 NET INCREASE IN CASH AND CASH EQUIVALENTS 43,746 Cash and Cash Equivalents, Beginning of Year 2,246 CASH AND CASH EQUIVALENTS, END OF YEAR 45,992 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (103,455) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 13,292 Changes in assets and liabilities: Accounts receivable (86) Deferred outflows (1,636) Accounts payable (156) Accrued salaries and benefits (37) Deferred inflows 1,271 Net pension liability 10,794 NET CASH USED BY OPERATING ACTIVITIES (80,013) $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 27 COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2019 Investment Trust Agency Fund Funds ASSETS Cash and investments 9,913,885 $ 339,159 $ Accounts receivable 43,533 281,722 Interest receivable 56,859 - Total Assets 10,014,277 620,881 LIABILITIES Accounts payable 440,169 484,317 Agency obligations - 136,564 Total Liabilities 440,169 620,881 NET POSITION Net position held in trust for investment pool participants 9,574,108 - Total Net Position 9,574,108 $ - $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 28 COUNTY OF ALPINE Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2019 Investment Trust Fund ADDITIONS Contributions to investment pool 7,301,019 $ Investment earnings 193,741 Total Additions 7,494,760 DEDUCTIONS Distributions from pooled investment accounts 5,758,080 Total Deductions 5,758,080 CHANGE IN NET POSITION 1,736,680 Net Position, Beginning of Year 7,837,428 NET POSITION, END OF YEAR 9,574,108 $ ---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, 2019 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 government 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, 2019 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 government services. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 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 Social Services Fund was established to account for social services programs in the County. • The MHSA Capital Facility Fund was established to account for the MHSA Wellness Center capital project. 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, 2019 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, 2019, to support the value of pool shares. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 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, 2019, 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, 2019 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, 2019, the County had deferred outflows of resources related to pensions and OPEB. 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 and OPEB 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, 2019 36 Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. L. Postemployment Benefits Other than Pensions (OPEB) In government-wide financial statements and proprietary fund financial statements, retirement OPEB plans are required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension OPEB expenditures on the governmental fund statements, which use the modified accrual basis of accounting. In general, the County recognizes a net OPEB liability, which represents the County’s proportionate share of the excess of the total OPEB liability over the fiduciary net position of the OPEB Plan reflected in the actuarial report provided by Nyhart. The net OPEB liability is measured as of the County’s prior fiscal year- end. Changes in the net OPEB liability are recorded, in the period incurred, as OPEB expenses or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net OPEB liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the OPEB plan and are recorded as a component of OPEB expense beginning with the period in which they are incurred. For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the County’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. M. Property Tax Revenue Property taxes, including tax rates, are regulated by the State and are administered locally by the County. The County is responsible for assessing, collecting and distributing property taxes in accordance with state law. Property taxes attach as an enforceable lien at January 1. Taxes are levied on July 1 and are payable in two installments, December 10 and April 10. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 37 All general property taxes are allocated to the various taxing entities per the legislation implementing Article XIII of the California Constitution (commonly referred to as Proposition 13). General property taxes are based either on a flat one percent rate applied to the 1975/1976 full value of the property or on one percent of the sales price of the property on sales transactions and construction after the 1975/1976 valuation. Taxable values on properties (exclusive of increases related to sales and construction) can rise at a maximum rate of two percent per year. The method of allocation used by the County is subject to review by the State of California. The County recognizes property tax revenues in the period for which the taxes are levied. N. Interfund Transactions Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” the current portion of interfund loans) or “advances to/from other funds” the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance amount in the applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or business-type activities are netted as part of the reconciliation to the government-wide presentation. O. Net Position The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: • 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 38 When both restricted and unrestricted net position is available, the County considers restricted net position to have been depleted before unrestricted net position is applied. P. Fund Balance In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent. • 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. • 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. Q. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 39 Note 2: Cash and Investments At June 30, 2019, total County cash and investments were as follows: Total cash and investments at June 30, 2019 were presented on the County’s financial statements as follows: The investment pool includes both voluntary and involuntary participation from external entities. The State of California statutes require certain districts and other governmental entities to maintain their cash surplus with the County Treasurer. Investments The County’s cash and investments are invested by the County Treasurer. The Treasury Oversight Committee has oversight for all monies deposited into the Treasury Pool. Such amounts are invested in accordance with investment policy guidelines established by the County Treasurer and reviewed and approved by the Board of Supervisors. The objectives of the policy are, in order of priority, safety of principal, liquidity and yield. The policy addresses the soundness of financial institutions in which the County will deposit funds, types of investment instruments as permitted by California Government Code and the percentage of the portfolio that may be invested in certain instruments. Cash: Cash on hand $ 192 Imprest accounts 380 Outstanding warrants (2,096,329) Deposits 2,694,354 Total Cash 598,597 Investments: In Treasurer's Pool 39,871,818 Total Cash and investments $ 40,470,415 Primary government $ 30,217,371 Investment trust fund 9,913,885 Agency funds $ 339,159 Total Cash and investments 40,470,415 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 40 The table below identifies the investment types that are authorized for the County by the California Government Code or the County’s investment policy, where more restrictive. The table also identifies certain provisions of the County’s investment policy that address interest rate risk, credit risk and concentration risk. At June 30, 2019, the County had the following investments: A copy of the County investment policy is available upon request from the Alpine County Finance Department at P.O. Box 266, Markleeville CA 96120 or by calling (530) 694-2284. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio in One Issuer Local Agency Bonds 1 Year 5% None U.S. Treasury Obligations 5 Years None None U.S. Agency Obligations 5 Years None None Collateralized Bank Deposits 1 Year 10% None Money Market Mutual Funds N/A 15% 10% Local Agency Investment Fund (LAIF) N/A None None Weighted Fair Average Maturity Investment Rates Maturities Par Value (Days) Investments in Investment Pool: U.S. Treasuries 1.125% - 2.500% 7/31/19 - 3/31/23 $ 2,470,000 $ 2,472,726 711.75 Federal Agency Obligations 1.150% - 2.875% 7/1/19 - 3/8/24 4,440,000 4,459,322 646.05 Money Market Mutual Funds Variable On Demand 5,499 5,499 0 LAIF Variable On Demand 32,934,271 32,934,271 173 $ 39,849,770 $ 39,871,818 259.3 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 41 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 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, 2019, the County’s portfolio WAM associated with the investment pool was 259.3 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. Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Investments By Fair Value Level Value (Level 1) (Level 2) (Level 3) Federal Agency Obligations $ 4,459,322 $ 4,459,322 $ - $ - U.S. Treasuries 2,472,726 2,472,726 - - Money Market Mutual Funds 5,499 5,499 - - Total Investments Measured at Fair Value 6,937,547 $ 6,937,547 $ - $ - Unclassified Investments: Local Agency Investment Fund 32,934,271 Total Investments $ 39,871,818 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 42 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, 2019. 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, 2019, the County’s investment position in LAIF was $32,934,271. 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 $105.7 billion. Of that amount, 1.77% was invested in structured notes and asset-backed securities with the remaining 98.23% invested in other non-derivative financial products. The average maturity of PMIA investments was 173 days as of June 30, 2019. LAIF operates and reports to participants on an amortized cost basis. The income, gains, and losses, net of administrative fees, are allocated based upon the participant’s average daily balance. Deposits in LAIF are not insured or otherwise guaranteed by the State of California and participants share proportionately in any realized gains or losses on investments. The fair value of LAIF is approximately equal to the value of pool shares. Withdrawals from LAIF are done on a dollar to dollar basis. Credit Rating % Investment in Pool Moody's/S&P/Finch Holdings Federal Agency Obligations Aaa/AA+/Aaa 11.19% U.S. Treasuries Aaa/AA+/Aaa 6.20% Money Market Mutual Funds Aaa/AAA/Aaa 0.01% LAIF Not Rated 82.60% 100.00% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 43 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, 2019, involuntary participants of the County’s investment pool totaled $7,451,732. 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, 2019: Statement of Net Position Net position held for pool participants $ 40,470,415 Equity of External pool participants $ 9,913,885 Equity of Internal pool participants 30,556,530 Total Net Position $ 40,470,415 Statement of Changes in Net Position Investment earnings $ 879,935 Investment expenses (33,873) Net contributions by pool participants (425,367) Increase in Net Position $ 420,695 Net Position at July 1, 2018 40,049,720 Net Position at June 30, 2019 $ 40,470,415 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 44 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. The composition of interfund balances classified as due to/from other funds as of June 30, 2019 is as follows: Receivable Fund Payable Fund Amount General Fund Other Governmental Funds $ 261,386 261,386 Social Services Realignment 41,025 Other Governmental Funds 30,305 71,330 Other Governmental Funds General Fund 1,735 Realignment Fund 56,365 Other Governmental Funds 1,525 59,625 $ 392,341 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 45 Transfers Transfers are indicative of funding for capital projects, lease payments for debt service, subsidies of various County operations and re-allocations of special revenues. The following schedules summarize the County’s transfer activity during the fiscal year ended June 30, 2019: Transfers between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Road Fund $ 1,258 Non-major Governmental Funds 336,746 338,004 Road Fund General Fund 73,660 Mental Health Services Act MHSA Capital Facility 1,219,363 Realignment Fund General Fund 150,892 Social Services 551,990 Non-major Governmental Funds 801,513 1,504,395 Social Services Non-major Governmental Funds 3,952 Other Governmental Funds General Fund 843,300 Social Services 37,846 Non-major Governmental Funds 210,166 1,091,312 $ 4,230,686 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 46 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2019 was as follows: Balance Transfers & Balance July 1, 2018 Additions Retirements Adjustments June 30, 2019 Governmental Activities: Total capital assets, not being depreciated Land $ 1,220,599 $ - $ - $ - $ 1,220,599 Construction in progress 1,261,517 1,550,174 (97,957) - 2,713,734 Total capital assets, not being depreciated 2,482,116 1,550,174 (97,957) - 3,934,333 Total capital assets, being depreciated Structures and improvements 15,425,462 76,340 - - 15,501,802 Equipment 11,906,711 530,426 (93,750) - 12,343,387 Infrastructure 34,875,697 - - - 34,875,697 Total capital assets, being depreciated 62,207,870 606,766 (93,750) - 62,720,886 Less accumulated depreciation for: Structures and improvements (5,442,112) (498,615) - - (5,940,727) Equipment (8,994,021) (543,438) 93,750 - (9,443,709) Infrastructure (33,779,943) (31,926) - - (33,811,869) Total accumulated depreciation (48,216,076) (1,073,979) 93,750 - (49,196,305) Total capital assets, being depreciated, net 13,991,794 (467,213) - - 13,524,581 Governmental activities capital assets, net $ 16,473,910 $ 1,082,961 $ (97,957) $ - $ 17,458,914 Business-Type Activities: Total capital assets, being depreciated Structures and improvements $ 11,657 $ - $ - $ - $ 11,657 Equipment 143,959 - - - 143,959 Total capital assets, being depreciated 155,616 - - - 155,616 Less accumulated depreciation for: Structures and improvements (145) (291) - - (436) Equipment (98,458) (13,001) - - (111,459) Total accumulated depreciation (98,603) (13,292) - - (111,895) Business-Type activities capital assets, net $ 57,013 $ (13,292) $ - $ - $ 43,721 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 47 Depreciation expense was charged to governmental functions as follows: Depreciation expense was charged to the business-type activities as follows: Note 5: Long-Term Liabilities The following is a summary of long-term liabilities activity for the fiscal year ended June 30, 2019: The Debt Service fund is responsible for the payments on the County’s capital lease. Liabilities for other postemployment benefits and compensated absences are generally liquidated by the General Fund and special revenue funds. Payments toward the net pension liability are generally liquidated by the General Fund, the special revenue funds and the Transit fund. Claims are paid by the General Fund. General government $ 261,648 Public protection 484,027 Public ways and facilities 165,071 Health and sanitation 33,453 Public assistance 81,673 Education 1,516 Recreation and cultural services 46,591 Total depreciation expense governmental activities $ 1,073,979 Alpine Transit Service $ 13,292 Balance Balance Amounts Due July 1, 2018 Additions Retirements June 30, 2019 Within One Year Governmental Activities: Capital leases payable $ 929,336 $ - $ (78,179) $ 851,157 $ 81,138 Net pension liability 11,724,223 962,031 (1,230,238) 11,456,016 - Other postemployment benefits 11,600,165 3,985,122 (566,258) 15,019,029 - Compensated absences 573,239 337,547 (286,619) 624,167 312,084 Estimated Liability for claims costs 727,073 1,325,233 (791,886) 1,260,420 1,260,420 $ 25,554,036 $ 6,609,933 $ (2,953,180) $ 29,210,789 $ 1,653,642 Business-type Activities: Net pension liability $ 62,660 $ 17,130 $ (6,336) $ 73,454 $ - $ 62,660 $ 17,130 $ (6,336) $ 73,454 $ - ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 48 Note 6: Capital Lease In March 2013, the County entered into a lease/purchase agreement with Capital One Public Funding, LLC, to finance $1,300,000 of the Alpine County Government Center Project (the “Project”). The Project serves as collateral for the outstanding balance of the direct borrowing. The direct borrowing contains a provision that if an event of default occurs and continues, then whatever action at law or remedies in the lease/purchase agreement may appear necessary or desirable to collect the amounts then due and thereafter become due is allowable, except there is no right under any circumstances to accelerate delinquent or future payments. The following is a summary of the County’s capital lease agreement as of June 30, 2019: Included in the governmental activities are the following capital asset amounts under capital leases: As of June 30, 2019, future minimum lease payments under capital leases were as follows: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2019 Alpine County Government Center 3.75% $ 851,157 Accumulated Cost Depreciation Book Value Administration building $ 200,760 $ 22,585 $ 178,175 Community development building 943,884 129,783 814,101 Sheriff secure storage facility 155,356 21,362 133,994 $ 1,300,000 $ 173,730 $ 1,126,270 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 49 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2019 are as follows: The general reserve is subject to the provisions of Government Code sections 29085, 29086 and 29127, whereby appropriation from the general reserve may be used only in cases of certain emergency situations. Because this stabilization arrangement does not meet the criteria described in GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, to be reported within the restricted or committed fund balance categories, it has been classified as unassigned in these statements. Year Ending June 30: 2020 $ 112,296 2021 112,296 2022 112,296 2023 112,296 2024 112,296 2025-2028 449,182 Total Future Minimum Lease Payments 1,010,662 Less: Interest (159,505) Present Value of Minimum Lease Payments $ 851,157 Mental MHSA General Road Health Realignment Social Capital Other Fund Fund Services Act Fund Services Facility Governmental Total Nonspendable: Permanent funds $ - $ - $ - $ - $ - $ - $ 473,691 $ 473,691 Deposits 1,721,056 - - - - - - 1,721,056 Prepaid expenses 2,592 - 750 - 113 - 1,102 4,557 Inventories - 173,917 - - - - - 173,917 Advances 60,000 - - - - 2,800 62,800 Total Nonspendable 1,783,648 173,917 750 - 113 - 477,593 2,436,021 Restricted: General government - - - - - - 35,446 35,446 Public protection - - - 1,251,619 - - 3,379,740 4,631,359 Public ways and facilities - 1,426,990 - - - - 328,123 1,755,113 Health and sanitation - - 3,408,110 4,270,595 - 159,078 738,478 8,576,261 Public assistance - - - 6,058,178 8,758 - - 6,066,936 Capital projects - - - - - - 72,694 72,694 CSA - - - - - - 657,289 657,289 Other 402,166 - - - - - - 402,166 Total Restricted 402,166 1,426,990 3,408,110 11,580,392 8,758 159,078 5,211,770 22,197,264 Committed: Capital projects - - - - - - 1,307,217 1,307,217 Total Committed - - - - - - 1,307,217 1,307,217 Assigned: Critical services - - - - - - - - Sheriff capital replacement - - - - - - - - Capital projects - - - - - - 173,474 173,474 Courthouse 380,300 - - - - - - 380,300 Post-employment benefits 525,110 - - - - - - 525,110 Eliminate projected 2015-16 budgetary deficit - - - - - - - - Other 2,484,059 - - - - - 162,437 2,646,496 Total Assigned 3,389,469 - - - - - 335,911 3,725,380 Unassigned 3,083,326 - - - - - (137,778) 2,945,548 Total Fund Balances $ 8,658,609 $ 1,600,907 $ 3,408,860 $ 11,580,392 $ 8,871 $ 159,078 $ 7,194,713 $ 32,611,430 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 50 Net position from governmental activities as of June 30, 2019, was restricted for the following purposes: Deficit fund balances / net position as of June 30, 2019, were as follows: Fund deficits result from the deferral of revenues collected more than sixty days after the end of the fiscal year. The collection of receivables in the next fiscal year is expected to eliminate the deficit balances. Note 8: County Employees Retirement Plan (Defined Benefit Pension Plan) General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees of Alpine County and Alpine County Superior Court are eligible to participate in the Country’s separate Safety (Sheriff) and Miscellaneous (all others) cost sharing multiple employer defined benefit pension plans, Employee Pension Plans, administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating member employers. Benefit provisions 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. Capital projects $ 231,772 General government 1,136,928 Public protection 4,622,995 Public ways and facilities 2,017,013 Health and sanitation 8,675,450 Public assistance 6,522,555 County Service Area #1 673,959 Other: Trust for Public Land - nonexpendable 473,691 Administrative Services 590,301 $ 24,944,664 Governmental Funds: Mental Health 14,392 Environmental Health 29,582 District Attorney Victim Witness Grant 32,439 COPS Grant 792 Alpine County Transportation Commission 57,752 Chamber of Commerce Programs 21 Enterprise Fund: Alpine Transit Services 13,121 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 51 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. Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2019 are summarized as follows: Provision terminated effective January 1, 2015. Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for all Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The County is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Provisions and Benefits Miscellaneous 1st Tier Miscellaneous PEPRA Safety 1st Tier Safety PEPRA Hire date Prior to January 1, 2013 After December 31, 2012 Prior to January 1, 2013 After December 31, 2012 Benefit formula 2% at 55 2% at 62 3% at 50 2.7% at 57 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments for life for life for life for life Retirement age 50-55 50-62 50 50-57 benefits, as a % of eligible compensation 1.426% to 2.418% 1% to 2.5% 3% 2% to 2.7% Required employee contribution rates 6.902% 6.500% 8.989% 12.750% Required employer contribution rates 10.152% 7.266% 22.346% 12.965% Employer required annual lump sum prepayment of Unfunded Actuarial Liability (UAL) $541,478 $945 $296,885 $73 Employer paid member contribution rates 2% to 7% depending on length of service None None None ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 52 For the year ended June 30, 2019, the contributions recognized as part of pension expense for each Plan were as follows: Pension Liabilities, Pension Expenses and Deferred Outflows/inflows of Resources Related to Pensions As of June 30, 2019, the County reported net pension liabilities for its proportionate shares of the net position liability of each Plan as follows: The County’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2018, 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. 2017. 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 measurement date June 30, 2017 and 2018 was as follows: Miscellaneous Miscellaneous Safety Safety 1st Tier PEPRA 1st Tier PEPRA Contributions - employer $ 646,859 $ 115,969 $ 419,420 $ 36,318 Proportionate Share of Net Pension Liability Miscellaneous $ 7,386,717 Safety 4,142,756 $ 11,529,473 Miscellaneous Safety Pool Pool Proportion - June 30, 2017 MD 0.18528% 0.07220% Proportion - June 30, 2018 MD 0.19600% 0.07060% Change - Increase (Decrease) 0.01072% -0.00160% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 53 For the year ended June 30, 2019, the County recognized pension expense of $1,705,520. At June 30, 2019, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Of the total reported as deferred outflows of resources, $1,401,279 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, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources to pensions will be recognized as pension expense as follows: Deferred Outflows of Deferred Inflows of Resources Resources Pension contributions subsequent to measurement date $ 1,401,279 $ - Net differences between expected and actual experience 344,401 (68,754) Changes of assumptions 1,248,585 (261,225) Net differences between actual and allocated employer contributions - (176,359) Adjustments due to differences in proportions 94,853 (3,084) Net differences between projected and actual earnings on plan investments 64,566 $ 3,153,684 $ (509,422) Year Ended June 30 2020 $ 1,069,972 2021 620,689 2022 (352,545) 2023 (95,134) 2024 - Thereafter - 1,242,982 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 54 Actuarial Assumptions The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions for all Plans: The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report that can be found on the CalPERS website. Discount Rate The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarial assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section. According to Paragraph 30 of Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.00 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15 percent. Using this lower discount rate has resulted in a higher Total Pension Liability and Net Pension Valuation date June 30, 2017 Measurement date June 30, 2018 Actuarial cost method Entry-age Normal Cost Method Actuarial Assumptions: Discount rate 7.15% Inflation 2.50% Payroll growth 3.00% Projected salary increase Varies by entry age and service depending on age, service and type of employment Investment rate of return 7.00%, net of pension plan investment and administrative expenses, including inflation Mortality Derived using CalPERS' membership data for all funds ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 55 Liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. 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 50.00% 4.80% 5.98% Fixed Income 28.00% 1.00% 2.62% Inflation Assets 0.00% 0.77% 1.81% Private Equity 8.00% 6.30% 7.23% Real Assets 13.00% 3.75% 4.93% Liquidity 1.00% 0.00% -0.92% 100.00% An expected inflation of 2.00% used for this period. An expected inflation of 2.92% used for this period. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 56 Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the County’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan The County did not have an outstanding amount of contributions to the pension plan required for the year ended June 30, 2019. Note 9: Other Post-Employment Benefits (OPEB) Plan Description The County provides retiree healthcare benefits to qualifying employees retiring directly from the County on a pay-as-you-go basis. Benefits include medical, dental and vision plan coverage and the benefit level is determined by date of hire and length of service. Benefits are provided through the County of Alpine Retiree Healthcare plan, a single-employer defined benefit healthcare plan administered by the County. Retirees not yet eligible for Medicare supplement coverage receive the same coverage and the same cost sharing formula as active employees until age 65. After becoming eligible for Medicare, retirees and/or their dependents who wish to retain coverage must enroll in an available plan offered by AARP. The County pays a specific dollar amount toward the cost of retiree coverage and, depending on the date of employment, may also pay a portion of the coverage for the retiree’s spouse or eligible dependents. 1% Decrease Current Discount Rate 1% Increase (6.15%) (7.15%) (8.15%) Net Pension Liability Miscellaneous $ 11,495,170 $ 7,386,717 $ 3,995,255 Safety 6,342,981 4,142,756 2,340,066 Total $ 17,838,151 $ 11,529,473 $ 6,335,321 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 57 Employees Covered As of the June 30, 2018 actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB Plan: Contributions The OPEB Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the County and the bargaining units. The annual contribution is based on the contractually required payments. Currently, the County is responsible for all payments and is charging each department, based on budgeted full time equivalents positions, their proportionate share of the pay-as-you-go costs for postemployment benefits in fiscal year 2018-2019. For the fiscal year ended June 30, 2019, the County’s pay-as-you-go payments were $537,255. Net OPEB Liability The County’s net OPEB liability was measured as of June 30, 2018 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2018, based on the following actuarial methods and assumptions: Active employees 80 Inactive employees entitled to but not yet receiving benefits - Inactive employees or beneficiaries currently receiving benefits 48 Total 128 Valuation date June 30, 2018 Measurement date June 30, 2018 Actuarial cost method Entry-Age Normal Cost, level percent of pay Asset Valuation Method1 Market Value of Assets Actuarial assumptions: Discount rate 2.98% Inflation 2.50% Payroll growth 3.25% Mortality MacLeod Watts Scale 2018 Applied Generationally from 2015 Healthcare trend rate 5.0% - 7.5% Notes: 1 The Market Value of Assets is currently $0 as the Plan is not funded. Investment rate of return is not included as there are no assets in the Plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 58 Discount Rate The discount rate used to measure the total OPEB liability was 2.98%. The projection of cash flows used to determine the discount rate assumed that no future contributions are made to the OPEB Plan. The discount rate is based upon the change in the applicable municipal bond index. The County is currently funding the pay-as-you-go costs. The County does not currently have a pre-funding policy or practice for contributing additional prefunding. Changes in the OPEB Liability The changes in the net OPEB liability for the County’s OPEB Plan are as follows: Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the County if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018: Increase (Decrease) Total OPEB Total Fiduciary Net Net OPEB Liability OPEB Liability (Asset) Balance at June 30, 2017 $ 11,600,165 $ - $ 11,600,165 Changes in the year: Service cost 348,106 348,106 Interest on total OPEB liability 365,119 365,119 Changes in benefit terms - - Changes in assumptions 142,954 142,954 Differences between expected and actual - experience 3,128,943 3,128,943 Benefit payments, including refunds of employee contributions (566,258) (566,258) - Contributions from the employer 566,258 (566,258) Contributions from employees - Net investment income - - Administrative expenses - - Other charges - Net changes 3,418,864 - 3,418,864 Balance at June 30, 2018 $ 15,019,029 $ - $ 15,019,029 1% Decrease Current Discount Rate 1% Increase (1.98%) (2.98%) (3.98%) Net OPEB Liability $ 17,055,242 $ 15,019,029 $ 13,349,606 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 59 Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the County if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2018: Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss: Net difference between projected and actual earnings on OPEB Plan investments are recognized over a five-year period, while all other amounts are recognized over the expected average remaining service lifetime (EARSL), 7.13 Years at June 30, 2018 measurement date. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2019, the County recognized OPEB expense of $1,076,074. As of fiscal year ended June 30, 2019, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 1% Decrease Current Healthcare 1% Increase Cost Trend Rates (6.5% to 4.00%) (7.5% to 5.00%) (8.50% to 6.00%) Net OPEB Liability $ 13,244,010 $ 15,019,029 $ 17,199,124 Deferred Outflows Deferred Inflows of Resources of Resources OPEB contibutions subsequent to the measurement date $ 537,255 $ Change in assumptions 122,904 472,534 Difference between expected and actual experience 2,690,101 Total $ 3,350,260 $ 472,534 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 60 The $537,255 reported as deferred outflows of resources related to OPEB contributions subsequent to the June 30, 2018 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2020. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: 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 2018-2019. The County holds a deposit with Trindel Insurance from which claims are paid. At June 30, 2019, the balance of the deposit was $1,721,056. 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. Year ending Deferred Outflows/ June 30, (Inflows) of Resources 2020 $ 362,849 2021 362,849 2022 362,849 2023 362,849 2024 370,530 Thereafter 518,545 Total $ 2,340,471 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 61 Changes in the balance of claims liability during the fiscal years ended June 30, 2019 and 2018 were as follows: 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. 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, 2019, the County had no ongoing construction commitments. 2019 2018 Unpaid claims, beginning of year $ 727,073 $ 753,615 Current year claims (including incurred but not reported) 1,325,233 260,149 Claims payments and changes in estimates (791,886) (286,691) Unpaid claims, end of year $ 1,260,420 $ 727,073 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2019 62 Note 12: Prior Period Adjustments A prior period adjustment is required to restate the beginning Net Position for Governmental Activities and related beginning Fund Balances for the change in major funds during the fiscal year 2018-2019. Details of the restatement of beginning Fund Balance/Net Position are as follow: Note 13: Subsequent Event On March 11, 2020 the World Health Organization declared the outbreak of coronavirus (COVID-19) a pandemic. In response, the State of California issued a shelter in-place order and the temporary closure of all businesses deemed to be nonessential. Accordingly, there will be a contraction of the national, state and County’s economy, which will potentially result in a reduction and/or delay in the receipt of tax revenues, as well as hinder certain other revenue generating operations of the County. Additionally, it may negatively impact the ability of the County to collect on certain balances due from others. While the County expects there to potentially be a negative financial impact, since the duration and impact is unknown, we are unable to reasonably quantify the effect on future financial statements. Fund Statements Social MHSA Mental Other Services Capital Facility Health Governmental Fund balance/net position, June 30, 2018 as previously reported $ - $ - $ (197,372) $ 7,527,578 Adjustments: Mental Health Fund no longer a major fund, so aggregated to Other Governmental Funds 197,372 (197,372) Social Services Fund became a major fund, segregated from Other Governmental Funds 187,159 (187,159) MHSA Capital Facility Fund became a major fund, segregated from Other Governmental Funds 266,696 (266,696) Fund balance/net position, June 30, 2018 as restated 187,159 266,696 - 6,876,351 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2019 63 County Pension Plan Schedule of Proportionate Share of the Net Pension Liability For the Measurement Period June 30, - Last 10 Years* NOTES TO THE SCHEDULES Changes in Benefit Terms – None Changes in Assumptions – In 2018, the demographic assumptions and the inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. Changes in Discount Rate – In 2018, CalPERS decreased the discount rate from 7.5% to 7.0%. * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. County Pension Plan Schedule of Contributions For the Year Ended June 30, - Last 10 Years* * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. 2018 2017 2016 2015 2014 Proportion of the net pension liability 0.1197% 0.1189% 0.1185% 0.1193% 0.1247% Proportionate share of the net pension liaiblity $ 11,529,473 $ 11,786,883 $ 10,258,121 $ 8,191,379 $ 7,756,690 Covered payroll $ 5,197,259 $ 5,074,318 $ 4,868,373 $ 4,386,486 $ 4,592,478 Proportionate share of the net pension liability as a percentage of covered payroll 221.84% 232.29% 210.71% 186.74% 168.90% Plan's fiduciary net position 34,802,774 33,155,122 19,769,328 19,736,186 20,796,946 Plan fiducitary net postion as a percentage of total pension liability 75.26% 73.31% 75.11% 79.07% 79.37% Safety Plans 2019 2018 2017 2016 2015 Contractually required contribution (actuarially determined) $ 1,401,279 $ 1,224,876 $ 1,094,783 $ 1,045,383 $ 875,632 Contributions in relation to the actuarilly determined contributions 1,401,279 1,224,876 1,094,783 1,045,383 875,632 Contributions deficiency (excess) $ - $ - $ - $ - $ - Covered employee payroll $ 5,197,259 $ 5,074,318 $ 4,868,373 $ 4,386,486 $ 4,592,478 Contributions as a percentage of covered payroll 26.96% 24.14% 22.49% 23.83% 19.07% ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2019 64 County OPEB Plan Schedule of Changes in Net OPEB Liability and Related Ratios For the Measurement Period June 30, - Last 10 Years* 2018 2017 Total OPEB Liability Service cost $ 348,106 $ 373,651 Interest on total pension liability 365,119 326,822 Change in benefit terms - - Changes of assumptions 142,954 (664,620) Differences between expected and actual experience 3,128,943 - Benefit payments, including refunds of employee contributions (566,258) (513,769) Change in allocation - - Net Change in total OPEB liability 3,418,864 (477,916) Total OPEB Liability - beginning 11,600,165 12,078,081 Total OPEB Liability - ending $ 15,019,029 $ 11,600,165 Plan Fiduciary Net Position Contributions - employer $ 566,258 $ 513,769 Contributions - employee - - Net investment income - - Benefit payments, including refunds of employee contributions (566,258) (513,769) Administrative expense - - Change in allocation - - Net change in plan fiduciary net position - - Plan Fiduciary Net Position - beginning - - Plan Fiduciary Net Position - ending $ - $ - Net OPEB liability - ending - $ 15,019,029 $ 11,600,165 Plan fiduciary net position as a percentage of total OPEB liability 0.00% 0.00% County's covered-employee payroll $ 5,526,600 $ 4,919,627 Net OPEB liability as a percentage of covered-employee payroll 271.76% 235.79% * Fiscal year 2017-18 (measurement date June 30, 2017) was the 1st year of implementation. Additional years will be presented as they become available. ---PAGE BREAK--- 65 COUNTY OF ALPINE Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2019 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 8,091,296 $ 8,091,296 $ 8,091,296 $ - $ RESOURCES (inflows): Taxes 5,704,000 5,704,000 6,231,378 527,378 Licenses and permits 24,155 24,155 26,839 2,684 Fines, forfeitures and penalties 330,000 330,000 332,008 2,008 Use of money and property 57,231 57,231 209,634 152,403 Intergovernmental 769,727 769,727 977,947 208,220 Charges for services 2,359,916 2,359,916 721,843 (1,638,073) Other revenues 189,500 189,500 301,638 112,138 Transfers from other funds 2,887,693 2,928,536 1,067,852 (1,860,684) Amounts Available for Appropriation 20,413,518 20,454,361 17,960,435 (2,493,926) CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 454,378 536,088 524,792 11,296 County Administrative Officer 260,231 260,231 235,519 24,712 Personnel 215,129 220,291 150,702 69,589 Auditor-Controller 524,397 524,397 469,288 55,109 OMB 87 Central Services 270,300 270,300 (604,658) 874,958 General Central Services 34,908 34,908 33,053 1,855 Information Technology 329,078 329,078 292,650 36,428 Treasurer-Tax Collector 185,323 191,863 190,297 1,566 Assessor 385,064 385,064 317,734 67,330 Elections 24,170 31,670 32,838 (1,168) Buildings & Grounds 629,540 667,305 548,984 118,321 Risk Management 1,025,311 1,027,111 (186,870) 1,213,981 Retiree Benefits 412,000 412,000 402,559 9,441 Legal Counsel 254,299 254,299 180,162 74,137 Tax Collector Costs 11,600 11,600 106 11,494 Contingency 263,576 134,876 - 134,876 Total General Government 5,279,304 5,291,081 2,587,156 2,703,925 Public protection: County Clerk 361,785 368,430 344,788 23,642 Recorder 117,279 119,097 115,657 3,440 Surveyor / Engineer 20,000 20,000 18,388 1,612 Grand Jury 17,923 17,923 12,623 5,300 District Attorney 318,418 323,208 314,784 8,424 Public Defender 58,000 58,000 59,810 (1,810) continued ---PAGE BREAK--- 66 COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2019 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Sheriff / Coroner 3,169,396 3,169,396 3,081,372 88,024 Jail 55,000 55,000 55,000 - Sheriff Grants 139,113 20,278 5,356 14,922 Communications 167,638 167,638 158,166 9,472 Probation 133,477 134,847 122,562 12,285 East Slope Fire / EMS 298,050 298,050 288,877 9,173 Agricultural Commission 13,727 13,727 13,727 - Planning Department 162,737 166,247 152,692 13,555 Local Agency Formation 2,800 2,800 925 1,875 AB233 Court Distribution 122,694 122,694 101,579 21,115 Total Public Protection 5,158,037 5,057,335 4,846,306 211,029 Public ways and facilities: BV Building & Grounds 85,350 86,400 78,131 8,269 Total Public Ways & Facilities 85,350 86,400 78,131 8,269 Health and sanitation: County Emergency Services 89,800 89,800 91,063 (1,263) Bear Valley Fire Department 90,614 90,614 89,624 990 Bear Valley EMS 10,281 10,281 8,488 1,793 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 10,000 10,000 9,584 416 Total Health and Sanitation 222,559 222,559 220,623 1,936 Public assistance: Community Development 547,908 547,908 500,385 47,523 Social Services Assistance 73,250 73,250 50,137 23,113 General Relief 2,750 2,750 497 2,253 Total Public Assistance 623,908 623,908 551,019 72,889 Education: Superintendent of Schools 65,179 65,179 65,073 106 Library 320,019 323,859 316,421 7,438 Total Education 385,198 389,038 381,494 7,544 Recreation and cultural services: Museum 50,164 50,164 50,731 (567) Capital outlay: Capital Outlay 209,910 306,924 248,362 58,562 Transfers to other funds: General Contribution 2,149,995 2,190,066 338,004 1,852,062 Total Charges to Appropriations 14,164,425 14,217,475 9,301,826 4,915,649 BUDGETARY FUND BALANCE, JUNE 30 6,249,093 $ 6,236,886 $ 8,658,609 $ 2,421,723 $ continued ---PAGE BREAK--- 67 COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2019 Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 17,960,435 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (8,091,296) Revenues from sale of capital assets in the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes (150,551) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,067,852) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 8,650,736 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 9,301,826 $ Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (338,004) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 8,963,822 $ ---PAGE BREAK--- 68 COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2019 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 1,450,314 $ 1,450,314 $ 1,450,314 $ - $ RESOURCES (inflows): Licenses and permits 600 600 630 30 Fines, forfeitures and penalties 700 700 412 (288) Use of money and property 4,500 4,500 35,684 31,184 Intergovernmental 2,081,365 2,111,365 1,505,361 (606,004) Charges for services 374,100 409,100 389,808 (19,292) Other revenues 325 325 433 108 Sale of assets - - 4,500 4,500 Transfers from other funds 1,258 1,258 1,258 - Amounts Available for Appropriation 3,913,162 3,978,162 3,388,400 (589,762) CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 2,455,087 2,591,327 1,429,308 1,162,019 Capital Outlay 250,077 306,077 284,525 21,552 Transfers to other funds 76,618 76,618 73,660 2,958 Total Charges to Appropriations 2,781,782 2,974,022 1,787,493 1,186,529 BUDGETARY FUND BALANCE, JUNE 30 1,131,380 $ 1,004,140 $ 1,600,907 $ 596,767 $ 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 3,388,400 $ 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 (1,450,314) Proceeds from the sale of assets are inflows of budgetary resources but are not revenues for financial reporting purposes (4,500) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,258) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 1,932,328 $ ---PAGE BREAK--- 69 COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2019 Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,787,493 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (73,660) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,713,833 $ ---PAGE BREAK--- 70 COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act For the Year Ended June 30, 2019 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 6,155,344 $ 6,155,344 $ 6,155,344 $ - $ RESOURCES (inflows): Use of money and property 28,471 28,471 139,412 110,941 Intergovernmental 1,485,000 1,485,000 1,535,613 50,613 Other revenues - - - - Amounts Available for Appropriation 7,668,815 7,668,815 7,830,369 161,554 CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,921,898 3,413,146 3,130,447 282,699 Capital Outlay 169,000 169,000 71,699 97,301 Transfers out to other funds 230,000 1,219,363 1,219,363 - Total Charges to Appropriations 2,320,898 4,801,509 4,421,509 380,000 BUDGETARY FUND BALANCE, JUNE 30 5,347,917 $ 2,867,306 $ 3,408,860 $ 541,554 $ 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 7,830,369 $ 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 (6,155,344) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,675,025 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 4,421,509 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (1,219,363) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 3,202,146 $ ---PAGE BREAK--- 71 COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund For the Year Ended June 30, 2019 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 10,636,924 $ 10,636,924 $ 10,636,924 $ - $ RESOURCES (inflows): Use of money and property 29,561 29,561 270,885 241,324 Intergovernmental 1,861,925 1,861,925 2,343,753 481,828 Transfer in 50,000 50,000 - (50,000) Amounts Available for Appropriation 12,578,410 12,578,410 13,251,562 673,152 CHARGES TO APPROPRIATIONS (outflows) Public protection 149,477 309,477 130,475 179,002 Capital Outlay - 40,000 36,300 3,700 Transfers out to other funds 1,265,268 1,756,862 1,504,395 252,467 Total Charges to Appropriations 1,414,745 2,106,339 1,671,170 435,169 BUDGETARY FUND BALANCE, JUNE 30 11,163,665 $ 10,472,071 $ 11,580,392 $ 1,108,321 $ 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 13,251,562 $ 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 (10,636,924) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes - Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 2,614,638 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,671,170 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (1,504,395) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 166,775 $ ---PAGE BREAK--- 72 COUNTY OF ALPINE Budgetary Comparison Schedule Social Services Fund For the Year Ended June 30, 2019 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 187,159 $ 187,159 $ 187,159 $ - $ RESOURCES (inflows): Use of money and property 5,142 5,142 2,767 (2,375) Intergovernmental 1,053,986 1,151,781 572,441 (579,340) Other revenues 8,500 8,500 19,252 10,752 Transfers in 420,832 698,016 589,836 (108,180) Amounts Available for Appropriation 1,675,619 2,050,598 1,371,455 (679,143) CHARGES TO APPROPRIATIONS (outflows): Public Assistance 1,504,460 1,578,006 1,294,899 283,107 Capital Outlay 21,000 85,000 63,733 21,267 Transfers out to other funds 3,000 3,000 3,952 (952) Total Charges to Appropriations 1,528,460 1,666,006 1,362,584 303,422 BUDGETARY FUND BALANCE, JUNE 30 147,159 $ 384,592 $ 8,871 $ (375,721) $ 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 1,371,455 $ 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 (187,159) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (589,836) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 594,460 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,362,584 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (3,952) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,358,632 $ ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information For the Year Ended June 30, 2019 73 BUDGETARY BASIS OF ACCOUNTING In accordance with the provisions of Sections 29000 and 29144, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year. A tentative budget approved no later than June 30 of each year establishes the legal authority for county spending in the following fiscal year until a final budget is adopted on or before October 2nd. Prior to adoption of the final budget, a public hearing is held to receive comments prior to adoption. From the effective date of the budget, which is adopted and controlled at the departmental level, the amounts stated therein as proposed expenditures become appropriations to the various County departments. However, the legal level of control is the fund level. The Board of Supervisors may amend the budget by resolution during the fiscal year. Department heads may, upon approval of the Treasurer- Tax Collector-Auditor Controller and the County Administrative Officer, make transfers from one object or purpose to another within the same budget unit. All other budget amendments must be approved by the County Board of Supervisors. It is the final revised budget that is presented in the required supplementary information section of this financial report. Appropriations lapse at year end. Budgets are adopted for the General Fund, all special revenue funds, permanent fund and capital projects funds. Accounting principles applied for purposes of developing data on a budgetary basis are materially the same as those used to present financial statements in conformity with GAAP, except that transfers are regarded as inflows of resources for budgetary purposes and not revenues for GAAP financial statement presentation purposes and transfers out are considered outflows of resources for budgetary purposes but not expenditures for GAAP financial statement presentation purposes. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION Combining Fund Statements ---PAGE BREAK--- 74 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2019 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 6,067,153 $ 539,086 $ 498,325 $ - $ 7,104,564 $ Accounts receivable 491 - - - 491 Taxes receivable 33,783 - - - 33,783 Due from other governments 885,601 - - - 885,601 Interest receivable 35,664 2,995 1,772 - 40,431 Due from other funds 59,625 - - - 59,625 Advance to other funds 2,800 - - - 2,800 Prepaid expenses 1,102 - - - 1,102 Total Assets 7,086,219 $ 542,081 $ 500,097 $ - $ 8,128,397 $ LIABILITIES Accounts payable 151,573 $ 10,618 $ 5,869 $ - $ 168,060 $ Accrued salaries and benefits 34,050 - - - 34,050 Due to other funds 293,216 - - - 293,216 Advance from other funds 32,800 - - - 32,800 Unearned revenues 19,773 - - - 19,773 Total Liabilities 531,412 10,618 5,869 - 547,899 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 385,785 - - - 385,785 FUND BALANCES Nonspendable 3,902 473,691 - - 477,593 Restricted 5,139,076 - 72,694 - 5,211,770 Committed 1,163,822 - 143,395 - 1,307,217 Assigned - 57,772 278,139 - 335,911 Unassigned (137,778) - - - (137,778) Total Fund Balances 6,169,022 531,463 494,228 - 7,194,713 Total Liabilities, Deferred Inflows of Resources and Fund Balances 7,086,219 $ 542,081 $ 500,097 $ - $ 8,128,397 $ ---PAGE BREAK--- 75 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2019 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 339,681 $ - $ - $ - $ 339,681 $ Licenses and permits 66,837 - - - 66,837 Fines, forfeitures and penalties 1,842 - - - 1,842 Use of money and property 166,840 13,171 37,106 - 217,117 Intergovernmental 2,475,680 - - - 2,475,680 Charges for services 595,081 - - - 595,081 Other revenues 157,876 - - - 157,876 Total Revenues 3,803,837 13,171 37,106 - 3,854,114 EXPENDITURES Current: General government 60,845 10,618 - - 71,463 Public protection 557,447 - - - 557,447 Public ways and facilities 690,034 - - - 690,034 Health and sanitation 2,138,596 - - - 2,138,596 Public assistance - - - - - Education - - - - - Capital outlay - - 226,981 - 226,981 Debt service: Principal - - - 78,179 78,179 Interest and issuance cost - - - 34,117 34,117 Total Expenditures 3,446,922 10,618 226,981 112,296 3,796,817 Excess (Deficiency) of Revenues Over (Under) Expenditures 356,915 2,553 (189,875) (112,296) 57,297 OTHER FINANCING SOURCES AND USES Gain/(loss) on sale of capital assets - - - - - Transfers in 970,343 - 269,738 112,296 1,352,377 Transfers out (1,091,312) - - - (1,091,312) Total Other Financing Sources (Uses) (120,969) - 269,738 112,296 261,065 NET CHANGES IN FUND BALANCES 235,946 2,553 79,863 - 318,362 Fund Balances, Beginning of Year, As Restated 5,933,076 528,910 414,365 - 6,876,351 FUND BALANCES, END OF YEAR 6,169,022 $ 531,463 $ 494,228 $ - $ 7,194,713 $ ---PAGE BREAK--- 76 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2019 State STPUD Public Environmental Drug and Mitigation Health Health Alcohol ASSETS Cash and investments 1,157,413 $ - $ - $ 401,215 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 185,479 - - Interest receivable 6,409 (494) (148) 2,157 Due from other funds - 50,382 - - Advance to other funds - - - - Prepaid expenses - 322 - - Total Assets 1,163,822 $ 235,689 $ (148) $ 403,372 $ LIABILITIES Accounts payable - $ 8,951 $ 9,315 $ 6,035 $ Accrued salaries and benefits - 11,923 346 4,069 Due to other funds - 105,575 - 453 Advance from other funds - - - - Unearned revenues - - 19,773 - Total Liabilities - 126,449 29,434 10,557 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 98,808 - - FUND BALANCES Nonspendable - 322 - - Restricted - 10,110 - 392,815 Committed 1,163,822 - - - Unassigned - - (29,582) - Total Fund Balances 1,163,822 10,432 (29,582) 392,815 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,163,822 $ 235,689 $ (148) $ 403,372 $ continued ---PAGE BREAK--- 77 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 Mental One-Stop Fish and Health Services Tobacco Game ASSETS Cash and investments 8,339 $ - $ 137,699 $ 66,476 $ Accounts receivable - - - 100 Taxes receivable - - - - Due from other governments 1,256 - 302,415 - Interest receivable (24) - 856 367 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - 325 - Total Assets 9,571 $ - $ 441,295 $ 66,943 $ LIABILITIES Accounts payable 17,900 $ - $ 12,092 $ 600 $ Accrued salaries and benefits 6,063 - 1,199 - Due to other funds - - 30,893 - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 23,963 - 44,184 600 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 113,103 - FUND BALANCES Nonspendable - - 325 - Restricted - - 283,683 66,343 Committed - - - - Unassigned (14,392) - - - Total Fund Balances (14,392) - 284,008 66,343 Total Liabilities, Deferred Inflows of Resources and Fund Balances 9,571 $ - $ 441,295 $ 66,943 $ continued ---PAGE BREAK--- 78 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 District Parking Attorney Records Victim Building Airport Mgmt Witness ASSETS Cash and investments 34,431 $ 50,170 $ 15,654 $ - $ Accounts receivable 391 - - - Taxes receivable - - - - Due from other governments - - - 22,413 Interest receivable 40 279 87 (19) Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 34,862 $ 50,449 $ 15,741 $ 22,394 $ LIABILITIES Accounts payable 5,112 $ - $ - $ 671 $ Accrued salaries and benefits 4,288 - - 1,424 Due to other funds - - - 325 Advance from other funds - - - 30,000 Unearned revenues - - - - Total Liabilities 9,400 - - 32,420 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 22,413 FUND BALANCES Nonspendable - - - - Restricted 25,462 50,449 15,741 - Committed - - - - Unassigned - - - (32,439) Total Fund Balances 25,462 50,449 15,741 (32,439) Total Liabilities, Deferred Inflows of Resources and Fund Balances 34,862 $ 50,449 $ 15,741 $ 22,394 $ continued ---PAGE BREAK--- 79 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 Youth CC Perf. Cal-Mmet Offender Incentives COPS Sheriff Block Grant Fund Grant Grants ASSETS Cash and investments 169,293 $ 1,323,840 $ - $ 289,801 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 17,721 50,000 - - Interest receivable 947 7,389 - 2,054 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - 455 - - Total Assets 187,961 $ 1,381,684 $ - $ 291,855 $ LIABILITIES Accounts payable 23,154 $ 64 $ - $ - $ Accrued salaries and benefits 380 570 - - Due to other funds - - 792 - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 23,534 634 792 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - 455 - - Restricted 164,427 1,380,595 - 291,855 Committed - - - - Unassigned - - (792) - Total Fund Balances 164,427 1,381,050 (792) 291,855 Total Liabilities, Deferred Inflows of Resources and Fund Balances 187,961 $ 1,381,684 $ - $ 291,855 $ continued ---PAGE BREAK--- 80 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 Law Assessor's Recorder's Enforcement Special Special Search and AB443 Revenue Fund Revenue Fund Rescue ASSETS Cash and investments 805,248 $ 35,250 $ 77,569 $ 15,530 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 8,010 196 429 20 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 813,258 $ 35,446 $ 77,998 $ 15,550 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities - - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 813,258 35,446 77,998 15,550 Committed - - - - Unassigned - - - - Total Fund Balances 813,258 35,446 77,998 15,550 Total Liabilities, Deferred Inflows of Resources and Fund Balances 813,258 $ 35,446 $ 77,998 $ 15,550 $ continued ---PAGE BREAK--- 81 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 County Alpine County Service Bear Valley Bear Valley Transportation Area No. 1 Public Safety Solid Waste Commission ASSETS Cash and investments 650,290 $ 370,105 $ 22,502 $ - $ Accounts receivable - - - - Taxes receivable 22,711 2,632 519 - Due from other governments - - - 46,870 Interest receivable 3,737 1,769 58 (234) Due from other funds - 1,504 367 - Advance to other funds - - - 2,800 Prepaid expenses - - - - Total Assets 676,738 $ 376,010 $ 23,446 $ 49,436 $ LIABILITIES Accounts payable 2,600 $ - $ 2,306 $ 14,175 $ Accrued salaries and benefits - - - - Due to other funds 179 - - 46,143 Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 2,779 - 2,306 60,318 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 16,670 - - 46,870 FUND BALANCES Nonspendable - - - 2,800 Restricted 657,289 376,010 21,140 - Committed - - - - Unassigned - - - (60,552) Total Fund Balances 657,289 376,010 21,140 (57,752) Total Liabilities, Deferred Inflows of Resources and Fund Balances 676,738 $ 376,010 $ 23,446 $ 49,436 $ continued ---PAGE BREAK--- 82 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 Local State Transit Chamber of Transportation Assistance Commerce Fire Fund Fund Programs Protection ASSETS Cash and investments 229,269 $ 38,021 $ 16,520 $ 42,591 $ Accounts receivable - - - - Taxes receivable 5,248 2,673 - - Due from other governments 3,736 264 - - Interest receivable 1,321 206 - 230 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 239,574 $ 41,164 $ 16,520 $ 42,821 $ LIABILITIES Accounts payable - $ - $ 16,541 $ - $ Accrued salaries and benefits - - - - Due to other funds - - - - Advance from other funds 2,800 - - - Unearned revenues - - - - Total Liabilities 2,800 - 16,541 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 264 - - FUND BALANCES Nonspendable - - - - Restricted 236,774 40,900 - 42,821 Committed - - - - Unassigned - - (21) - Total Fund Balances 236,774 40,900 (21) 42,821 Total Liabilities, Deferred Inflows of Resources and Fund Balances 239,574 $ 41,164 $ 16,520 $ 42,821 $ continued ---PAGE BREAK--- 83 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 Title III SNC Woodstove Secure Rural Court Prop. 84 Replacement Schools Services Grant Program ASSETS Cash and investments 93,185 $ 71 $ 1,171 $ 46 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 396 80 7 - Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 93,581 $ 151 $ 1,178 $ 46 $ LIABILITIES Accounts payable 711 $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 711 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 92,870 151 1,178 46 Committed - - - - Unassigned - - - - Total Fund Balances 92,870 151 1,178 46 Total Liabilities, Deferred Inflows of Resources and Fund Balances 93,581 $ 151 $ 1,178 $ 46 $ continued ---PAGE BREAK--- 84 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 Public Behavioral Public Other Health Health Safety Miscellaneous Misc. Grants Misc. Grants Misc. Grants Grants ASSETS Cash and investments - $ 19 $ 48 $ 15,387 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 255,447 - - - Interest receivable (461) - - - Due from other funds 7,372 - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 262,358 $ 19 $ 48 $ 15,387 $ LIABILITIES Accounts payable 31,346 $ - $ - $ - $ Accrued salaries and benefits 3,788 - - - Due to other funds 108,856 - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 143,990 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 87,657 - - - FUND BALANCES Nonspendable - - - - Restricted 30,711 19 48 15,387 Committed - - - - Unassigned - - - - Total Fund Balances 30,711 19 48 15,387 Total Liabilities, Deferred Inflows of Resources and Fund Balances 262,358 $ 19 $ 48 $ 15,387 $ continued ---PAGE BREAK--- 85 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2019 Total ASSETS Cash and investments 6,067,153 $ Accounts receivable 491 Taxes receivable 33,783 Due from other governments 885,601 Interest receivable 35,664 Due from other funds 59,625 Advance to other funds 2,800 Prepaid expenses 1,102 Total Assets 7,086,219 $ LIABILITIES Accounts payable 151,573 $ Accrued salaries and benefits 34,050 Due to other funds 293,216 Advance from other funds 32,800 Unearned revenues 19,773 Total Liabilities 531,412 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 385,785 FUND BALANCES Nonspendable 3,902 Restricted 5,139,076 Committed 1,163,822 Unassigned (137,778) Total Fund Balances 6,169,022 Total Liabilities, Deferred Inflows of Resources and Fund Balances 7,086,219 $ ---PAGE BREAK--- 86 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 State STPUD Public Environmental Drug and Mitigation Health Health Alcohol REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 28,523 8,607 (99) 10,382 Intergovernmental - 245,471 15,008 85,140 Charges for services 23,631 64,121 48,188 - Other revenues 114,801 593 333 - Total Revenues 166,955 318,792 63,430 95,522 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - 602,155 122,346 286,260 Public assistance - - - - Capital outlay - - - - Total Expenditures - 602,155 122,346 286,260 Excess (Deficiency) of Revenues Over (Under) Expenditures 166,955 (283,363) (58,916) (190,738) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - 283,597 43,278 11,587 Transfers out (112,296) - - - Total Other Financing Sources (Uses) (112,296) 283,597 43,278 11,587 NET CHANGES IN FUND BALANCES 54,659 234 (15,638) (179,151) Fund Balances, Beginning of Year, As Restated 1,109,163 10,198 (13,944) 571,966 FUND BALANCES, END OF YEAR 1,163,822 $ 10,432 $ (29,582) $ 392,815 $ continued ---PAGE BREAK--- 87 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 Mental One-Stop Fish and Health Services Tobacco Game REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - 644 Use of money and property 198 25 6,159 957 Intergovernmental 175,733 - 201,366 79 Charges for services - - - 56,250 Other revenues - - - 4,110 Total Revenues 175,931 25 207,525 62,040 EXPENDITURES Current: General government - - - - Public protection - - - 56,573 Public ways and facilities - - - - Health and sanitation 483,951 - 241,932 - Public assistance - - - - Capital outlay - - - - Total Expenditures 483,951 - 241,932 56,573 Excess (Deficiency) of Revenues Over (Under) Expenditures (308,020) 25 (34,407) 5,467 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in 491,000 - 3,839 - Transfers out - (9,555) (33,857) - Total Other Financing Sources (Uses) 491,000 (9,555) (30,018) - NET CHANGES IN FUND BALANCES 182,980 (9,530) (64,425) 5,467 Fund Balances, Beginning of Year, As Restated (197,372) 9,530 348,433 60,876 FUND BALANCES, END OF YEAR (14,392) $ - $ 284,008 $ 66,343 $ continued ---PAGE BREAK--- 88 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 District Parking Attorney Records Victim Building Airport Mgmt Witness REVENUES Taxes - $ - $ - $ - $ Licenses and permits 66,837 - - - Fines, forfeitures and penalties - - - - Use of money and property (34) 1,160 383 (95) Intergovernmental - 10,000 - 66,471 Charges for services 32,365 - - - Other revenues 151 - - - Total Revenues 99,319 11,160 383 66,376 EXPENDITURES Current: General government - - - - Public protection 174,750 - - 71,328 Public ways and facilities - 2,117 - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 174,750 2,117 - 71,328 Excess (Deficiency) of Revenues Over (Under) Expenditures (75,431) 9,043 383 (4,952) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in 90,517 - - - Transfers out - - - - Total Other Financing Sources (Uses) 90,517 - - - NET CHANGES IN FUND BALANCES 15,086 9,043 383 (4,952) Fund Balances, Beginning of Year, As Restated 10,376 41,406 15,358 (27,487) FUND BALANCES, END OF YEAR 25,462 $ 50,449 $ 15,741 $ (32,439) $ continued ---PAGE BREAK--- 89 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 Youth CC Perf. Cal-Mmet Offender Incentives COPS Sheriff Block Grant Fund Grant Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 4,269 30,977 8,210 Intergovernmental 117,000 201,521 - 123,060 Charges for services - - - - Other revenues - - - - Total Revenues 121,269 232,498 131,270 EXPENDITURES Current: General government - - - - Public protection 118,013 39,890 - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 118,013 39,890 - - Excess (Deficiency) of Revenues Over (Under) Expenditures 3,256 192,608 131,270 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out (4,890) (12,070) - (123,060) Total Other Financing Sources (Uses) (4,890) (12,070) - (123,060) NET CHANGES IN FUND BALANCES (1,634) 180,538 8,210 Fund Balances, Beginning of Year, As Restated 166,061 1,200,512 (790) 283,645 FUND BALANCES, END OF YEAR 164,427 $ 1,381,050 $ (792) $ 291,855 $ continued ---PAGE BREAK--- 90 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 Law Enforcement Assessor's Recorder's Search and AB443 Trust Trust Rescue REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 31,713 831 1,852 46 Intergovernmental 499,999 - - - Charges for services - - 649 - Other revenues - 2,683 3,792 22,327 Total Revenues 531,712 3,514 6,293 22,373 EXPENDITURES Current: General government - 845 - - Public protection (799) - 3,888 8,375 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures (799) 845 3,888 8,375 Excess (Deficiency) of Revenues Over (Under) Expenditures 532,511 2,669 2,405 13,998 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out (484,992) - - - Total Other Financing Sources (Uses) (484,992) - - - NET CHANGES IN FUND BALANCES 47,519 2,669 2,405 13,998 Fund Balances, Beginning of Year, As Restated 765,739 32,777 75,593 1,552 FUND BALANCES, END OF YEAR 813,258 $ 35,446 $ 77,998 $ 15,550 $ continued ---PAGE BREAK--- 91 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 County Alpine County Service Bear Valley Bear Valley Transportation Area No. 1 Public Safety Solid Waste Commission REVENUES Taxes 279,681 $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties 1,198 - - - Use of money and property 16,957 7,085 114 (606) Intergovernmental 455 - - 157,769 Charges for services - 308,971 60,906 - Other revenues - - - - Total Revenues 298,291 316,056 61,020 157,163 EXPENDITURES Current: General government - - - - Public protection - 33,479 - - Public ways and facilities 379,564 - - 158,353 Health and sanitation - - 74,091 - Public assistance - - - - Capital outlay - - - - Total Expenditures 379,564 33,479 74,091 158,353 Excess (Deficiency) of Revenues Over (Under) Expenditures (81,273) 282,577 (13,071) (1,190) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in 1,000 - 2,000 - Transfers out - (243,995) - - Total Other Financing Sources (Uses) 1,000 (243,995) 2,000 - NET CHANGES IN FUND BALANCES (80,273) 38,582 (11,071) (1,190) Fund Balances, Beginning of Year, As Restated 737,562 337,428 32,211 (56,562) FUND BALANCES, END OF YEAR 657,289 $ 376,010 $ 21,140 $ (57,752) $ continued ---PAGE BREAK--- 92 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 Local State Transit Chamber of Transportation Assistance Commerce Fire Fund Fund Programs Protection REVENUES Taxes - $ - $ 60,000 $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 6,197 785 9 922 Intergovernmental 66,710 11,919 - - Charges for services - - - - Other revenues - - - 9,086 Total Revenues 72,907 12,704 60,009 10,008 EXPENDITURES Current: General government - - 60,000 - Public protection - - - - Public ways and facilities 150,000 - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 150,000 - 60,000 - Excess (Deficiency) of Revenues Over (Under) Expenditures (77,093) 12,704 9 10,008 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGES IN FUND BALANCES (77,093) 12,704 9 10,008 Fund Balances, Beginning of Year, As Restated 313,867 28,196 (30) 32,813 FUND BALANCES, END OF YEAR 236,774 $ 40,900 $ (21) $ 42,821 $ continued ---PAGE BREAK--- 93 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 Title III SNC Woodstove Secure Rural Court Prop. 84 Replacement Schools Services Grant Program REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 1,597 238 (229) 58 Intergovernmental 46,655 - 25,758 - Charges for services - - - - Other revenues - - - - Total Revenues 48,252 238 25,529 58 EXPENDITURES Current: General government - - - - Public protection 18,207 28,755 96 4,892 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 18,207 28,755 96 4,892 Excess (Deficiency) of Revenues Over (Under) Expenditures 30,045 (28,517) 25,433 (4,834) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - 28,491 - - Transfers out - - - - Total Other Financing Sources (Uses) - 28,491 - - NET CHANGES IN FUND BALANCES 30,045 (26) 25,433 (4,834) Fund Balances, Beginning of Year, As Restated 62,825 177 (24,255) 4,880 FUND BALANCES, END OF YEAR 92,870 $ 151 $ 1,178 $ 46 $ continued ---PAGE BREAK--- 94 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 Pubic Behavioral Public Other Health Health Safety Miscellaneous Misc. Grants Misc. Grants Misc. Grants Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (398) - - 49 Intergovernmental 425,566 - - - Charges for services - - - - Other revenues - - - - Total Revenues 425,168 - - 49 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 327,861 - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 327,861 - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 97,307 - - 49 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in 15,034 - - - Transfers out (66,597) - - - Total Other Financing Sources (Uses) (51,563) - - - NET CHANGES IN FUND BALANCES 45,744 - - 49 Fund Balances, Beginning of Year, As Restated (15,033) 19 48 15,338 FUND BALANCES, END OF YEAR 30,711 $ 19 $ 48 $ 15,387 $ continued ---PAGE BREAK--- 95 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2019 Total REVENUES Taxes 339,681 $ Licenses and permits 66,837 Fines, forfeitures and penalties 1,842 Use of money and property 166,840 Intergovernmental 2,475,680 Charges for services 595,081 Other revenues 157,876 Total Revenues 3,803,837 EXPENDITURES Current: General government 60,845 Public protection 557,447 Public ways and facilities 690,034 Health and sanitation 2,138,596 Public assistance - Capital outlay - Total Expenditures 3,446,922 Excess (Deficiency) of Revenues Over (Under) Expenditures 356,915 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - Transfers in 970,343 Transfers out (1,091,312) Total Other Financing Sources (Uses) (120,969) NET CHANGES IN FUND BALANCES 235,946 Fund Balances, Beginning of Year, As Restated 5,933,076 FUND BALANCES, END OF YEAR 6,169,022 $ ---PAGE BREAK--- 96 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2019 Leviathan Inter Accumulated Peak Communications Capital Vehicle Communications Capital Outlay Replacement Tower Maintenance ASSETS Cash and investments 174,443 $ 104,108 $ 72,292 $ 147,482 $ Interest receivable - 557 402 813 Total Assets 174,443 $ 104,665 $ 72,694 $ 148,295 $ LIABILITIES Accounts payable 969 $ - $ - $ 4,900 $ Total Liabilities 969 - - 4,900 FUND BALANCES Restricted - - 72,694 - Committed - - - 143,395 Assigned 173,474 104,665 - - Unassigned - - - - Total Fund Balances 173,474 104,665 72,694 143,395 Total Liabilities, Deferred Inflows of Resources and Fund Balances 174,443 $ 104,665 $ 72,694 $ 148,295 $ continued ---PAGE BREAK--- 97 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2019 Total ASSETS Cash and investments 498,325 $ Interest receivable 1,772 Total Assets 500,097 $ LIABILITIES Accounts payable 5,869 $ Total Liabilities 5,869 Fund Balances: Restricted 72,694 Committed 143,395 Assigned 278,139 Unassigned - Total Fund Balances 494,228 Total Liabilities, Deferred Inflows of Resources and Fund Balances 500,097 $ ---PAGE BREAK--- 98 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended June 30, 2019 Leviathan Inter Accumulated Peak Communications Capital Vehicle Communications Capital Outlay Replacement Tower Maintenance REVENUES Use of money and property 489 $ 2,660 $ 1,766 $ 32,191 $ Other revenues - - - - Total Revenues 489 2,660 1,766 32,191 EXPENDITURES Capital outlay 38,187 172,654 - 16,140 Total Expenditures 38,187 172,654 - 16,140 Excess (Deficiency) of Revenues Over (Under) Expenditures (37,698) (169,994) 1,766 16,051 OTHER FINANCING SOURCES (USES) Transfers in 96,738 173,000 - - Total Other Financing Sources (Uses) 96,738 173,000 - - NET CHANGES IN FUND BALANCES 59,040 3,006 1,766 16,051 Fund Balances, Beginning of Year, As Restated 114,434 101,659 70,928 127,344 FUND BALANCES, END OF YEAR 173,474 $ 104,665 $ 72,694 $ 143,395 $ continued ---PAGE BREAK--- 99 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (con Nonmajor Capital Projects Funds For the Year Ended June 30, 2019 Total REVENUES Use of money and property 37,106 $ Other revenues - Total Revenues 37,106 EXPENDITURES Capital outlay 226,981 Total Expenditures 226,981 Excess (Deficiency) of Revenues Over (Under) Expenditures (189,875) OTHER FINANCING SOURCES (USES) Transfers in 269,738 Total Other Financing Sources (Uses) 269,738 NET CHANGES IN FUND BALANCES 79,863 Fund Balances, Beginning of Year, As Restated 414,365 FUND BALANCES, END OF YEAR 494,228 $