Document alpinecountyca_gov_doc_932dcc71ec

COUNTY OF ALPINE, CALIFORNIA ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2017 ---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 29-59 Required Supplementary Information: Schedule of Funding Progress – County Postemployment Healthcare Plan 60 County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability 61 County Pension Plan – Schedule of Contributions 62 Budgetary Comparison Schedules: General Fund 63-65 Road Fund 66-67 Mental Health Services Act 68 Realignment Fund 69 Note to Required Supplementary Information 70 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Combining Balance Sheet 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 72 Nonmajor Special Revenue Funds: Combining Balance Sheet 73-83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 84-94 Nonmajor Capital Projects Funds: Combining Balance Sheet 95-96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 97-98 ---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, 2017, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Alpine County Children and Families Commission (the Commission), the discretely presented component unit, which represent 100 percent of the assets, net position, and revenues of the discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Commission, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal ---PAGE BREAK--- 2 control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 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, 2017, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4-17, Schedule of Funding Progress – Retiree Healthcare Plan on page 60, County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability on page 61, County Pension Plan - Schedule of Contributions on page 62, and Budgetary Comparison Schedules on pages 63-69, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2018, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. ---PAGE BREAK--- 3 That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Clovis, California March 29, 2018 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 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, 2017. 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 $36,485,548 (net position). Unrestricted net position which normally is discretionary and available to meet ongoing obligations to citizens and creditors was deficit by $1,473,037. $22,772,553 is restricted and must be used only for specific purposes and $15,186,032 is invested in capital assets, net of related debt. • As of June 30, 2017, the County’s governmental funds reported combined fund balances of $31,287,681, an increase of $2,338,575 because current year revenues exceeded current year expenditures. • Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 94.00% of ending fund balance. Of this amount, $21,958,935 is restricted by law or externally imposed requirements, $1,193,589 is committed for specific purposes and $3,638,451 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. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $2,674,240, or 30.87% of total General Fund expenditures, is available for spending towards operations in subsequent years. • The County’s capital asset balances decreased by $580,973 or 3.46% over the prior fiscal year. The decrease results from depreciation of $1,273,153 and offset by new purchases of $269,420 and construction additions of $422,759. No project costs were removed from construction in process because no projects were completed during the year. • The County’s long-term liabilities increased by $2,348,732 or 20.07% during the current fiscal year. Increases of $2,066,753 in net pension liability, $333,762 in other post-employment benefits (OPEB) liabilityand $47,644 in compensated absences were offset by a decrease of $72,580 in the capital lease and $26,847 in the claims liability. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 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, 2017 6 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on how cash and other financial assets can readily be converted to available resources and the balances left at year-end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the County’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains several individual governmental funds organized according to their type (special revenue, permanent, debt service and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the Road Fund, the Mental Health Services Act Fund, and the Realignment Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The County adopts an annual appropriated budget for its General Fund, special revenue, permanent, debt service and capital projects funds. A budgetary comparison schedule has been provided for the General Fund and each major special revenue fund to demonstrate compliance with the budget. Proprietary Funds The County maintains one of two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses an enterprise fund to account for Alpine County Transit. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 7 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County’s progress in funding its OPEB obligation, information about the County’s proportionate share of the net pension liability and pension contributions, and also the budgetary comparison schedules for the General Fund and each major special revenue fund. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary of Net Position As of June 30, 2016 and 2017 (in thousands) As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets and deferred outflows exceeded liabilities and deferred inflows by $36.5 million at the close of the most recent fiscal year, increasing $1.6 million, or 4.6% during the year. The largest portion of the County’s net position is restricted net position representing resources that are subject to external restrictions on how they may be used. During the fiscal year, restricted net position increased $1.64 million, or 7.8%. 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 increased by $0.5 million primarily because of a $0.5 million increase in general revenues. At the end of the current fiscal year, the County reported positive balances in two of the three categories of net position. The County’s sole business-type activity ended the year in a negative net position due to transit expenses exceeding program revenues. Governmental Activities Business-Type Activities Total 2017 2016 2017 2016 2017 2016 Assets: Current and other assets $ 33,111 $ 30,905 $ 99 $ 80 $ 33,210 $ 30,985 Capital assets, net 16,132 16,696 59 75 16,191 16,771 Total assets 49,243 47,601 158 155 49,401 47,756 Deferred Outflows 2,871 1,108 13 6 2,884 1,114 Liabilities: Current and other liabilities 1,037 1,098 122 108 1,159 1,206 Long-term liabilities 14,007 11,667 46 37 14,053 11,704 Total liabilities 15,044 12,765 168 145 15,212 12,910 Deferred Inflows 584 1,088 4 - 588 1,088 Net Position: Net Investment in capital assets 15,127 15,619 59 75 15,186 15,694 Restricted net position 22,773 21,124 - - 22,773 21,124 Unrestricted net position (1,414) (1,887) (60) (59) (1,474) (1,946) Total net position $ 36,486 $ 34,856 $ $ 16 $ 36,485 $ 34,872 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 9 The following table shows the changes in net position for governmental and business-type activities. Changes in Net Position Year ended June 30, 2016 and 2017 (in thousands) Governmental Activities Business-Type Activities Total 2017 2016 2017 2016 2017 2016 Revenues: Program revenues: Charges for services $ 1,913 $ 1,630 $ 6 $ 9 $ 1,919 $ 1,639 Operating grants and contributions 9,197 8,109 77 73 9,274 8,182 Capital grants and contributions - 149 - 1 - 150 General revenues: - - Property taxes 5,229 5,017 - - 5,229 5,017 Sales taxes 496 522 - - 496 522 Other taxes 743 661 - - 743 661 Unrestricted investment earnings 157 289 - - 157 289 Non-program grant revenues 219 210 - - 219 210 Total revenues 17,954 16,587 83 83 18,037 16,670 Expenses: General government 3,537 3,237 - - 3,537 3,237 Public protection 5,443 4,553 - - 5,443 4,553 Public ways and facilities 2,035 1,733 - - 2,035 1,733 Health and sanitation 3,193 2,726 - - 3,193 2,726 Public assistance 1,672 1,462 - - 1,672 1,462 Education 324 295 - - 324 295 Recreation 80 83 - - 80 83 Interest on long-term debt 40 42 - - 40 42 Alpine County Transit - - 100 89 100 89 Total expenses 16,324 14,131 100 89 16,424 14,220 Change in net position 1,630 2,456 (17) 1,613 2,450 Net position at beginning of year 34,856 32,400 16 22 34,872 32,422 Restatements - - - - - - Net position at end of the year $ 36,486 $ 34,856 $ $ 16 $ 36,485 $ 34,872 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 10 Expenses and Program Revenues – Governmental Activities Year ended June 30, 2017 (in thousands) 0 1000 2000 3000 4000 5000 6000 Program Revenues Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 11 Revenues by Source – Governmental Activities Year ended June 30, 2017 Analysis of Revenues The County’s revenues increased by $1,367,431 or 8.20%. Significant changes from last fiscal year are summarized below: • Cost and fees associated with the receipt of delinquent property taxes increased $100,769 over prior year. • Minor increases in many charges for services, like plan check fees, construction permits, and fire/rescue reimbursements, resulted in a combined increase of approximately $183,000 over the prior year. • CalTRANS state grant funding increased $323,213 from prior year. • Protective services funding from state realignment sources increased $185,293 over prior year. • Community Correction Performance state grant funding under SB678 increased $191,026 over prior year. • Federal funds used for health services increased $231,619 from the prior year. This increase was due to a $117,999 increase in CDC grant funding and a $113,620 increase in HPP grant funding over prior year. • Federal funds used for law enforcement/emergency services increased $149,282. This increase was due to a $149,282 increase in the EMPG grant 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 10.66% Operating grants and contributions 51.23% Capital grants and contributions 0.00% Property taxes 29.12% Sales taxes 2.76% Other taxes 4.14% Unrestricted investment earnings 0.87% Non-program grant revenues 1.22% Revenues ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 12 Tax revenues (property, sales, transient occupancy and other taxes) increased $266,924 over prior year. This increase is due to $83,303 increase in transient occupancy taxes and $211,321 increase in property tax in the current year. Current secured and delinquent secured property tax collections were essentially the same as the prior year. Changes in the General Fund’s property tax receivable were positive as it fell by about 1% from $338,473 at June 30, 2016 to $334,872 at June 30, 2017. Expenses by Function/Program Year ended June 30, 2017 Analysis of Expenses The County’s expenses increased by $2,193,259, or 15.52%. Significant changes from last fiscal year are summarized below: • Salary costs increased $308,582. This increase is due to an increase in health services positions, as well as step and COLA increases. • Overtime costs, incurred primarily by Sheriff Deputies, were $24,337 more than the prior year. • Certain employee benefits including health insurance and retirement contributions were $310,774 more due to filling vacancies, increased medical premiums and higher retirement contribution rates. • Services and repairs were $145,165 more than last year, primarily due to the Roads and East Slope Emergency Services Departments. • Miscellaneous professional services were $351,382 more than the prior year. • OPEB costs were $333,762 more than the prior year. • Pension expense was $499,695 more than the prior year. General government 21.67% Public protection 33.34% Public ways and facilities 12.47% Health and sanitation 19.56% Public assistance 10.24% Education 1.98% Recreation 0.49% Interest on long- term debt 0.25% Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 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 $119,048 in grants received but not yet earned. These transit revenues are reduced and reclassified as a liability on the Statement of Net Position as unearned revenue. Operating revenues for the year was about the same as last year while expenses were $10,338 more, mostly attributable to increased salaries and benefits. Governmental Funds As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. At June 30, 2017, the County’s governmental funds reported combined ending fund balances of $31,287,681, an increase of $2,338,575 in comparison with the prior year. The components of fund balance are as follows, and with the exception of nonspendable fund balance, are available for appropriation at any time: • Nonspendable fund balance, $1,876,719, 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 $1,257,144 held by Trindel, the County’s insurance claims processor. Nonspendable fund balance also includes $400,000 representing the corpus portion of the County’s one permanent fund. • Restricted fund balance, $21,958,935, consists of amounts with constraints externally imposed by creditors, grantors, laws, regulations and enabling legislation. While these amount are available for appropriation at any time, the nature of the expenditures are constrained by external providers. Significant components of this balance include: o Mental Health Services Act - $6,323,622 o Realignment funding - $8,784,755 o Restricted to road maintenance and improvement - $1,299,959 o Community Corrections Performance Incentives - $1,050,753 o County Service Area No. 1 - $635,877 o AB443 Enhancing Law Enforcement Activities - $736,841 • Committed fund balance, $1,193,589, 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, 2017 14 • Assigned fund balance, $3,638,451, 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 $1,335,034 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, $517,019 set aside for unfunded other postemployment liabilities, $380,034 intended to pay the County’s MOU with the Courts and also any future facility improvements to the Courthouse building and $312,509 set aside for capital replacement and on- going capital projects. • Unassigned fund balance, $2,619,987 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 82%, or $6,219,452, 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 $390,579, or 17% 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 81% of total General Fund expenditures and spendable fund balance is approximately 67%. Both measures are less favorable when compared to the prior year (89% and 74%, respectively for the prior year). This generally is because total expenditures increased $734,897 over the prior year while total fund balance increased only $484,938 and spendable fund balance only increased $354,122. Below is a chart showing General Fund surplus (deficit) for the past five years. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 15 Other Governmental Funds The Road Fund completed the year with a decrease in fund balance of $146,140. Needed maintenance projects have been delayed so as to minimize operating deficits resulting from lower revenues caused by falling gas prices and more fuel efficient cars. This status quo strategy will continue as long as necessary until a much needed legislative fix from the State is enacted. The Mental Health Services Act fund experienced a decrease in fund balance of $137,888. This fund is funded with revenues generated from the passage of Proposition 63. The resources are used to support County mental health programs. Although funding allocations received from the State decreased this year, some components of this fund’s activities which were delayed in previous years were incurred in the curreny year. The capital facility component included in the County’s MHSA three-year plan is set aside to finance a new Behavior Health facility in the near future. The Realignment Fund realized an increase in fund balance of $1,338,166. Realignment revenues are used to pay for operational funding gaps in programs that include behavioral health, public health, social services and post release community supervision, net of the funding from other dedicated sources. As compared with the prior year, the total fund balances of the remaining governmental funds increased 13%, or $799,499. A majority of the increase is the community corrections performance incentives fund, which increased $373,201 and the local transportation fund, which increased $173,753 due to program revenues. ($400,000) ($300,000) ($200,000) ($100,000) $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Surplus (Deficit) ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 16 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 $170,624, or 0.9% from the original budget adopted in September 2016. Most of the increase resulted from increased transfers in. Total appropriations increased by $255,844, or 1.9%, and this increase was the result of grant expenditures and vendor costs that increased greater than expected. Actual revenues were less than the amount budgeted by $2,633,811, or 13.5%. This entire shortfall is due to $3,039,943 worth of transfers in not received. This resulted from a delay in expenditures expected to be spent in the current year thereby also delaying the transfer in of restricted moneys that reimburse the operating funds for its share of expenditures. Actual expenditures were less than budgeted appropriations by $3,684,517, or 26.8% of final budgeted appropriations. Differences between the final budget and actual amounts are mostly the result of cost savings but also include delays experienced when scheduled projects funded by the general fund did not occur as anticipated. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2017 totaled $16.2 million. Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads and bridges. The total net decrease (including the effect of depreciation) in the County’s capital assets for the current fiscal year was $580,974. Major capital asset additions during the current fiscal year included: • Computers and projector - $58,743 • Vehicles - $160,264 • Various equipment - $50,414 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2017 17 Debt Administration At the end of the current fiscal year, the County had total long-term liabilities outstanding of $14,052,955, an increase of $2,348,732 from the prior year. A comparison of each type of liability and its balance, after restatement, from last year to this year, along with a reason for the change is as follows: 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. 2017 2016 Changes Capital leases payable $ 1,004,663 $ 1,077,243 $ (72,580) scheduled payment Other postemployment benefits 1,515,221 1,181,459 333,762 pay-as-you go funded Net pension liability 10,258,155 8,191,402 2,066,753 contributions and other adjustments Compensated absences 521,301 473,657 47,644 net paid absences Liability for claims cost 753,615 780,462 (26,847) decreased anticipated claims $ 14,052,955 $ 11,704,223 $ 2,348,732 ---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, 2017 Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 29,944,515 $ - $ 29,944,515 $ 223,334 $ Accounts receivable 146,080 - 146,080 - Taxes receivable 418,601 - 418,601 - Due from other governments 1,181,437 39,926 1,221,363 68,385 Interest receivable 65,614 (36) 65,578 - Prepaid expense 21,726 - 21,726 - Deposits 1,257,144 - 1,257,144 - Inventories 135,049 - 135,049 - Interfund balances (59,809) 59,809 - - Capital assets: Nondepreciable 2,224,194 - 2,224,194 - Depreciable, net 13,907,999 58,502 13,966,501 - Total Assets 49,242,550 158,201 49,400,751 291,719 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 2,870,894 12,845 2,883,739 - LIABILITIES Accounts payable 634,125 1,912 636,037 31 Accrued salaries and benefits 241,147 1,294 242,441 - Accrued interest payable 3,140 - 3,140 - Due to other government 158,284 - 158,284 - Unearned revenue - 119,048 119,048 - Long-term liabilities: Due within one year: Compensated absences 260,651 - 260,651 2,507 Capital leases 75,327 - 75,327 - Estimated liability for claims costs 753,615 - 753,615 - Due after one year: Compensated absences 260,650 - 260,650 - Capital leases 929,336 - 929,336 - Other post-employment benefits 1,515,221 - 1,515,221 - Net pension liability 10,212,022 46,133 10,258,155 - Total Liabilities 15,043,518 168,387 15,211,905 2,538 DEFERRED INFLOWS OF RESOURCES Pension adjustments 583,411 3,626 587,037 - NET POSITION Net investment in capital assets 15,127,530 58,502 15,186,032 - Restricted, including nonexpendable amounts of $400,000 22,772,553 - 22,772,553 289,181 Unrestricted (1,413,568) (59,469) (1,473,037) - Total Net Position 36,486,515 $ (967) $ 36,485,548 $ 289,181 $ ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2017 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: General government 3,536,721 $ 839,472 $ - $ - $ Public protection 5,443,583 712,736 2,369,866 - Public ways and facilities 2,035,028 94,465 1,413,388 - Health and sanitation 3,193,115 232,911 3,369,897 - Public assistance 1,672,127 25,059 2,031,070 - Education 324,449 8,851 13,130 - Recreation and culture 79,942 - - - Interest on long-term debt 39,490 - - - Total Governmental Activities 16,324,455 1,913,494 9,197,351 - Business-Type Activities Alpine Transit Service 100,001 6,405 76,826 Total Primary Government 16,424,456 $ 1,919,899 $ 9,274,177 $ - $ Component Unit: Alpine County Children and and Families Commission 358,745 $ - $ 275,010 $ - $ GENERAL REVENUES AND TRANSFERS Taxes: Property taxes Sales and use taxes Transient occupancy taxes Other taxes Grants and other governmental revenues not restricted to specific programs Unrestricted investment earnings Total General Revenues CHANGES IN NET POSITION Net Position, Beginning of Year NET POSITION, END OF YEAR See the accompanying notes to the basic financial statements. 19 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Discrete Primary Government Component Unit Alpine County Business- Children Governmental Type and Families Activities Activities Total Commission FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: (2,697,249) $ - $ (2,697,249) $ General government (2,360,981) - (2,360,981) Public protection (527,175) - (527,175) Public ways and facilities 409,693 - 409,693 Health and sanitation 384,002 - 384,002 Public assistance (302,468) - (302,468) Education (79,942) - (79,942) Recreation and culture (39,490) - (39,490) Interest on long-term debt (5,213,610) - (5,213,610) Total Governmental Activities Business-Type Activities - (16,770) (16,770) Alpine Transit Service (5,213,610) (16,770) (5,230,380) Total Primary Government Component Unit: Alpine County Children and (83,735) $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 5,228,749 - 5,228,749 - Property taxes 496,126 - 496,126 - Sales and use taxes 712,909 - 712,909 - Transient occupancy taxes 29,623 - 29,623 - Other taxes Grants and other governmental revenues 219,409 - 219,409 - not restricted to specific programs 157,200 (72) 157,128 1,960 Unrestricted investment earnings 6,844,016 (72) 6,843,944 1,960 Total General Revenues 1,630,406 (16,842) 1,613,564 (81,775) CHANGES IN NET POSITION 34,856,109 15,875 34,871,984 370,956 Net Position, Beginning of Year 36,486,515 $ (967) $ 36,485,548 $ 289,181 $ NET POSITION, END OF YEAR ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2017 Mental General Road Health Realignment Fund Fund Services Act Fund ASSETS Cash and investments 6,506,819 $ 1,400,907 $ 6,260,444 $ 8,636,302 $ Accounts receivable 28,897 1,636 - (60) Taxes receivable 389,372 - - - Due from other governments 194,327 8,087 153,090 338,320 Interest receivable 14,271 2,986 12,756 17,247 Prepaid expenses 15,390 1,730 2,758 - Deposits 1,257,144 - - - Inventories - 135,049 - - Due from other funds 25,415 155,068 1,613 - Advance to other funds 60,000 - - - Total Assets 8,491,635 $ 1,705,463 $ 6,430,661 $ 8,991,809 $ LIABILITIES Accounts payable 190,078 $ 72,240 $ 77,929 $ - $ Accrued salaries and benefits 152,189 13,234 26,352 - Due to other government 158,284 - - - Due to other funds 90,232 145,164 - 143,411 Advance from other funds - 30,000 - - Total Liabilities 590,783 260,638 104,281 143,411 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 348,866 8,087 - 63,643 FUND BALANCES Nonspendable 1,332,534 136,779 2,758 - Restricted 273,597 1,299,959 6,323,622 8,784,755 Committed - - - - Assigned 3,271,615 - - - Unassigned 2,674,240 - - - Total Fund Balances 7,551,986 1,436,738 6,326,380 8,784,755 Total Liabilities, Deferred Inflows of Resources and Fund Balances 8,491,635 $ 1,705,463 $ 6,430,661 $ 8,991,809 $ See the accompany notes to the basic financial statements. 20 ---PAGE BREAK--- Other Governmental Total ASSETS 7,140,043 $ 29,944,515 $ Cash and investments 115,607 146,080 Accounts receivable 29,229 418,601 Taxes receivable 491,579 1,185,403 Due from other governments 14,389 61,648 Interest receivable 1,848 21,726 Prepaid expenses - 1,257,144 Deposits - 135,049 Inventories 395,294 577,390 Due from other funds 2,800 62,800 Advance to other funds 8,190,789 $ 33,810,356 $ Total Assets LIABILITIES 293,879 $ 634,125 $ Accounts payable 49,372 241,147 Accrued salaries and benefits - 158,284 Due to other government 258,392 637,199 Due to other funds 32,800 62,800 Advance from other funds 634,443 1,733,555 Total Liabilities DEFERRED INFLOWS OF RESOURCES 368,524 789,120 Unavailable revenues FUND BALANCES 404,648 1,876,719 Nonspendable 5,277,002 21,958,935 Restricted 1,193,589 1,193,589 Committed 366,836 3,638,451 Assigned (54,253) 2,619,987 Unassigned 7,187,822 31,287,681 Total Fund Balances Total Liabilities, Deferred Inflows 8,190,789 $ 33,810,356 $ 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, 2017 Fund balance - total governmental funds 31,287,681 $ 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 63,169,387 $ Less: accumulated depreciation (47,037,194) 16,132,193 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 789,120 Deferred outflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 2,870,894 Deferred inflows of resources in governmental activities does not require the use of financial resources and, therefore, are not reported in the governmental funds (583,411) 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 (753,615) Capital leases (1,004,663) Compensated absences (521,301) Other post-employment benefits (1,515,221) Net pension liability (10,212,022) Accrued interest payable (3,140) Net position of governmental activities 36,486,515 $ ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2017 Mental General Road Health Realignment Fund Fund Services Act Fund REVENUES Taxes 6,204,144 $ - $ - $ - $ Licenses and permits 21,570 690 - - Fines, forfeitures and penalties 443,722 1,537 - - Use of money and property 50,791 10,449 33,117 42,794 Intergovernmental 899,400 1,118,816 1,439,633 2,173,702 Charges for services 685,141 426,844 - - Other revenues 163,466 3,163 - - Total Revenues 8,468,234 1,561,499 1,472,750 2,216,496 EXPENDITURES Current: General government 2,898,099 - - - Public protection 4,442,539 - - 40,724 Public ways and facilities 69,251 1,341,934 - - Health and sanitation 193,617 - 1,552,274 - Public assistance 512,030 - - - Education 365,514 - - - Recreation and cultural services 37,964 - - - Capital outlay 145,167 300,002 8,667 - Debt service: Principal - - - - Interest and issuance cost - - - - Total Expenditures 8,664,181 1,641,936 1,560,941 40,724 Excess (Deficiency) of Revenues Over (Under) Expenditures (195,947) (80,437) (88,191) 2,175,772 OTHER FINANCING SOURCES (USES) Transfers in 1,147,468 - - - Transfers out (466,583) (65,703) (49,697) (837,606) Total Other Financing Sources and (Uses) 680,885 (65,703) (49,697) (837,606) NET CHANGES IN FUND BALANCES 484,938 (146,140) (137,888) 1,338,166 Fund Balances, Beginning of Year 7,067,048 1,582,878 6,464,268 7,446,589 FUND BALANCES, END OF YEAR 7,551,986 $ 1,436,738 $ 6,326,380 $ 8,784,755 $ See the accompanying notes to the basic financial statements. 22 ---PAGE BREAK--- Other Governmental Total REVENUES 323,744 $ 6,527,888 $ Taxes 69,460 91,720 Licenses and permits 1,412 446,671 Fines, forfeitures and penalties 81,488 218,639 Use of money and property 3,776,500 9,408,051 Intergovernmental 586,037 1,698,022 Charges for services 196,045 362,674 Other revenues 5,034,686 18,753,665 Total Revenues EXPENDITURES Current: 64,809 2,962,908 General government 693,328 5,176,591 Public protection 607,857 2,019,042 Public ways and facilities 1,536,563 3,282,454 Health and sanitation 1,203,745 1,715,775 Public assistance - 365,514 Education - 37,964 Recreation and cultural services 288,710 742,546 Capital outlay Debt service: 72,580 72,580 Principal 39,716 39,716 Interest and issuance cost 4,507,308 16,415,090 Total Expenditures Excess (Deficiency) of Revenues Over 527,378 2,338,575 (Under) Expenditures OTHER FINANCING SOURCES (USES) 1,375,128 2,522,596 Transfers in (1,103,007) (2,522,596) Transfers out 272,121 - Total Other Financing Sources and (Uses) 799,499 2,338,575 NET CHANGES IN FUND BALANCES 6,388,323 28,949,106 Fund Balances, Beginning of Year 7,187,822 $ 31,287,681 $ 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, 2017 Net change to fund balance - total governmental funds 2,338,575 $ 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 692,179 Less: current year depreciation (1,256,369) (564,190) 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 48,179 Unavailable revenues are reported as deferred inflows of resources in the governmental funds, but are recognized as revenues in the statement of activities (72,082) 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 72,580 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 226 Change in compensated absences (47,644) Change in estimated liability for claims costs 26,847 Change in other post-employment benefits (333,762) (354,333) 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 161,677 Change in net position of governmental activities 1,630,406 $ 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, 2017 ASSETS Current Assets: Cash and investments - $ Due from other governments 39,926 Interest receivable (36) Due from other funds 74,673 Total Current Assets 114,563 Non-Current Assets: Equipment, net of accumulated depreciation 58,502 Total Assets 173,065 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 12,845 LIABILITIES Current Liabilities: Accounts payable 1,912 Accrued salaries and benefits 1,294 Due to other funds 14,864 Unearned revenue 119,048 Total Current Liabilities 137,118 Noncurrent Liabilities: Net pension liability 46,133 Total Liabilities 183,251 DEFERRED INFLOWS OF RESOURCES Pension adjustments 3,626 NET POSITION Net investment in capital assets 58,502 Unrestricted (59,469) Total Net Position (967) $ ---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, 2017 OPERATING REVENUES Passenger fares 6,405 $ OPERATING EXPENSES Salaries and benefits 50,540 Adminstrative 24,433 Fuel and vehicle maintenance 7,598 Insurance 646 Depreciation 16,784 Total Operating Expenses 100,001 OPERATING INCOME (LOSS) (93,596) NON-OPERATING REVENUES (EXPENSES) Federal Transit Administration operating grant 35,348 Local Transportation Fund allocation 41,478 Interest (72) Total Non-Operating Revenues (Expenses) 76,754 CHANGE IN NET POSITION (16,842) Net Position, Beginning of Year 15,875 NET POSITION, END OF YEAR (967) $ ---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, 2017 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 6,405 $ Cash paid to employees (44,321) Cash paid to suppliers for goods and services (32,319) Net Cash Used by Operating Activities (70,235) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments (18) Net Cash Provided by Investment Activities (18) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 29,868 Net Cash Provided by Noncapital Financing Activities 29,868 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contribution Acquisition of capital assets Net Cash Used in Capital and Related Financing Activities NET DECREASE IN CASH AND CASH EQUIVALENTS (40,386) Cash and Cash Equivalents, Beginning of Year 40,386 CASH AND CASH EQUIVALENTS, END OF YEAR - $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (93,596) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 16,784 Changes in assets and liabilities: Deferred outflows (2,499) Accounts payable 358 Accrued salaries and benefits 675 Deferred inflows (632) Net pension liability 8,675 NET CASH USED BY OPERATING ACTIVITIES (70,235) $ ---PAGE BREAK--- See the accompanying notes to the basic financial statements. 27 COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2017 Investment Agency Trust Funds ASSETS Cash and investments 7,275,151 $ 320,540 $ Accounts receivable 98,772 78,397 Interest receivable 14,913 70,150 Total Assets 7,388,836 469,087 LIABILITIES Accounts payable 61,008 163,084 Agency obligations - 306,003 Total Liabilities 61,008 469,087 NET POSITION Net position held in trust for investment pool participants 7,327,828 - Total Net Position 7,327,828 $ - $ ---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, 2017 Investment Trust ADDITIONS Contributions to investment pool 5,769,904 $ Investment earnings 35,933 Total Additions 5,805,837 DEDUCTIONS Distributions from pooled investment accounts 5,867,527 Total Deductions 5,867,527 CHANGE IN NET POSITION (61,690) Net Position, Beginning of Year 7,389,518 NET POSITION, END OF YEAR 7,327,828 $ ---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, 2017 30 Note 1: Summary of Significant Accounting Policies The accounting methods adopted by the County conform to accounting principles generally accepted in the United States of America as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the County’s accounting policies are described below. A. Description of the Reporting Entity The County is a legal subdivision of the State of California whereby it can exercise the powers specified by the constitution and statutes of the State of California. The County operates under an Administrator-Board of Supervisors form of government with legislative and executive control held by an elected five member Board of Supervisors. Major services provided by the County to its citizens include: public protection, public ways and facilities, health and sanitation, public assistance, education, culture and recreation and general services. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable under the criteria set by Governmental Accounting Standards Board (GASB) Statement No. 61, “Financial Reporting Entity: Omnibus”. Reporting for component units on the County’s financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Blended component units are an extension of the County and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the basic financial statements to emphasize they are legally separate from the County. Each component unit has a June 30th year-end. Blended Component Units. The County Service Area #1 and Alpine County Local Transportation Commission are districts governed by the County Board of Supervisors. The component unit’s governing body is substantially the same as the primary government; hence, these units are presented by blending them with the primary government. Financial statements for the Alpine County Local Transportation Commission can be obtained at P.O. Box 266, Markleeville, CA 96120. Discretely Presented Component Units. The nine members of the Alpine County Children and Families Commission are appointed by the Alpine County Board of Supervisors and may be removed at any time without cause. Because the County Board of Supervisors can impose their will on the Commission, the Commission is considered a component unit of the County. The Commission is discretely presented because the two boards are not substantially the same and their operations are separate. Separately issued financial statements may be obtained by contacting the Commission at 100 Foothill Road, Suite D-3, Markleeville, CA 96120. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 31 B. Basis of Presentation Government-Wide Financial Statements The statement of net position and statement of activities display information about the primary government (the County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties. The statement of activities presents a comparison between program expenses and program revenues for each segment of the business-type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements The fund financial statements provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. Proprietary fund operating revenues include charges for the goods or services provided by the fund as part of its principal activity and result from exchange transactions. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include the costs of providing services and delivering goods. All other expenses not meeting this definition are reported as nonoperating expenses. The County reports the following major governmental funds: • The General Fund is the County’s primary operating fund and is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. For the County, the General Fund includes such activities as public protection, public ways and facilities, health and sanitation, public assistance, education, recreation services and general services. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 32 • The Road Fund was established to provide for maintenance and construction of roadways. Revenues consist primarily of the County’s share of state highway use tax and are supplemented by federal and state funds. • The Mental Health Services Act Fund was established to account for Proposition 63 passed in 2004 to expand and further develop mental health services in the County. • The Realignment Fund was established to account for State realigned revenues generated from sales taxes and vehicle license fees that are restricted to expenditure for specific social, health, mental health and public safety programs. The County reports its only enterprise fund described below as a major fund: • The Alpine Transit Service Fund provides public transit services in the County. The County reports the following fiduciary fund types: • The Investment Trust Fund accounts for the assets of legally separate entities, which invest in the County Treasurer’s investment pool. These entities include one school district and several special districts governed by local boards. These funds represent the assets, primarily cash and investments, and the related liability of the County to disburse these monies on demand. • The Agency Funds account for assets held by the County as an agent for various individuals or other local governments. These funds are custodial in nature and do not involve measurement of results or operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. C. Basis of Accounting The government-wide, proprietary and investment trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 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, 2017, to support the value of pool shares. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 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, 2017, 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, 2017 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, 2017, the County had deferred outflows of resources related to pensions. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County had deferred inflows of resources consisting of unavailable revenues reported under the modified accrual basis of accounting in the governmental funds balance sheet and related to pensions in its proprietary and government-wide statements. The governmental funds report unavailable revenues from property taxes, intergovernmental, and other sources as appropriate. The amounts are deferred and recognized as revenues in the period the amounts become available. K. Pensions In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The County recognizes a net pension liability for each qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as of the County’s fiscal year-end or the County’s proportionate share thereof in the case of a cost-sharing multiple-employer plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 36 Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. L. Property Tax Revenue Property taxes, including tax rates, are regulated by the State and are administered locally by the County. The County is responsible for assessing, collecting and distributing property taxes in accordance with state law. Property taxes attach as an enforceable lien at January 1. Taxes are levied on July 1 and are payable in two installments, December 10 and April 10. All general property taxes are allocated to the various taxing entities per the legislation implementing Article XIII of the California Constitution (commonly referred to as Proposition 13). General property taxes are based either on a flat one percent rate applied to the 1975/1976 full value of the property or on one percent of the sales price of the property on sales transactions and construction after the 1975/1976 valuation. Taxable values on properties (exclusive of increases related to sales and construction) can rise at a maximum rate of two percent per year. The method of allocation used by the County is subject to review by the State of California. The County recognizes property tax revenues in the period for which the taxes are levied. M. Interfund Transactions Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” the current portion of interfund loans) or “advances to/from other funds” the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance amount in the applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 37 Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or business-type activities are netted as part of the reconciliation to the government-wide presentation. N. Net Position The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: • Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. • Restricted Net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted Net position – This category represents net position of the County, not restricted for any project or other purpose. When both restricted and unrestricted net position is available, the County considers restricted net position to have been depleted before unrestricted net position is applied. O. Fund Balance In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent. • Nonspendable fund balance – Amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to remain intact. • Restricted fund balance – Amounts with constraints placed on their use that are externally imposed by creditors, grantors, contributors, or laws and regulations of other governments. Constraints may also be imposed by law through constitutional provisions or enabling legislation. • Committed fund balance – Amounts that can only be used for specific purposes determined by formal action of the County’s highest level of decision-making authority (the Board of Supervisors) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 38 • Assigned fund balance – Amounts that are constrained by the County’s intent to use resources for specific purposes. The intent can be established at either the highest level of decision-making or by a body or an official designated for that purpose. This is also the classification for residual fund balance in all governmental funds other than the General Fund. • Unassigned fund balance – The residual classification for the County’s General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if the expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned to those purposes deficit fund balance). The Board of Supervisors establishes, modifies or rescinds fund balance commitments and assignments by passage of an ordinance or resolution and through adoption of the budget and subsequent budget amendments that occur throughout the year. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, followed by committed, assigned and unassigned resources as they are needed. P. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. Note 2: Cash and Investments At June 30, 2017, total County cash and investments were as follows: Cash: Cash on hand $ 115 Imprest accounts 380 Deposits 944,699 Total Cash 945,194 Investments: In Treasurer's Pool 36,595,012 Total Cash and investments $ 37,540,206 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 39 Total cash and investments at June 30, 2017 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. 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. Primary government $ 29,944,515 Investment trust fund 7,275,151 Agency funds $ 320,540 Total Cash and investments 37,540,206 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 40 At June 30, 2017, the County had the following investments: A copy of the County investment policy is available upon request from the Alpine County Finance Department at P.O. Box 266, Markleeville CA 96120 or by calling (530) 694-2284. Fair Value Measurements The Pool categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered hierarchy, as follows: • 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, 2017, the County’s portfolio WAM associated with the investment pool was 273.6 days. Weighted Fair Average Maturity Investment Rates Maturities Par Value (Days) Investments in Investment Pool: U.S. Treasuries 0.625% - 1.875% 11/30/17 - 11/30/21 $ 2,305,000 $ 2,295,813 745.2 Federal Agency Obligations 0.750% - 2.250% 7/28/17 - 3/11/22 4,365,000 4,361,250 604.8 Money Market Mutual Funds Variable On Demand 8,798 8,798 0 LAIF Variable On Demand 29,929,151 29,929,151 190.8 $ 36,607,949 $ 36,595,012 273.6 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 $ 4,361,250 $ 4,361,250 $ - $ - U.S. Treasuries 2,295,813 2,295,813 - - Money Market Mutual Funds 8,798 8,798 - - Total Investments Measured at Fair Value 6,665,861 $ 6,665,861 $ - $ - Unclassified Investments: Local Agency Investment Fund 29,929,151 Total Investments $ 36,595,012 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 41 Credit Risk – Generally, custodial credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the County’s policy to purchase investments meeting ratings requirements established by the California Government Code. Concentration of Credit Risk – State law limits investments in money market mutual funds, collateralized bank deposits and local agency bonds to no more than 15%, 10% and respectively, of the investment pool at the time of purchase. State law also limits investments in any one money market mutual fund to no more than 10% of the investment pool at the time of purchase. The County’s investment policy adheres to these limitations established by California Government Code. The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the County’s Investment Pool’s fair value at June 30, 2017. 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, 2017, the County’s investment position in LAIF was $29,929,151. 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 $77.6 billion. Of that amount, 2.25% was invested in structured notes and asset-backed securities with the remaining Credit Rating % Investment in Pool Moody's/S&P/Finch Holdings Federal Agency Obligations Aaa/AA+/AAA 11.92% U.S. Treasuries Aaa/AA+/AAA 6.27% Money Market Mutual Funds Aaa/AAA/AAA 0.02% LAIF Not Rated 81.79% 100.00% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 42 97.75% invested in other non-derivative financial products. The average maturity of PMIA investments was 190.8 days as of June 30, 2017. LAIF operates and reports to participants on an amortized cost basis. The income, gains, and losses, net of administrative fees, are allocated based upon the participant’s average daily balance. Deposits in LAIF are not insured or otherwise guaranteed by the State of California and participants share proportionately in any realized gains or losses on investments. The fair value of LAIF is approximately equal to the value of pool shares. Withdrawals from LAIF are done on a dollar to dollar basis. County Investment Pool The County’s Investment Pool includes amounts held for its one school district whose participation in the Treasury Pool is mandated by State code. At June 30, 2017, involuntary participants of the County’s investment pool totaled $7,216,333. 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, 2017: Statement of Net Position Net position held for pool participants $ 37,540,206 Equity of External pool participants $ 7,275,151 Equity of Internal pool participants 30,265,055 Total Net Position $ 37,540,206 Statement of Changes in Net Position Investment earnings $ 298,617 Investment expenses (34,872) Net contributions by pool participants 1,861,758 Decrease in Net Position $ 2,125,503 Net Position at July 1, 2016 35,414,703 Net Position at June 30, 2017 $ 37,540,206 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 43 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, 2017 is as follows: Receivable Fund Payable Fund Amount General Fund Realignment Fund $ 6,913 Other Governmental Funds 18,502 25,415 Road Fund Other Governmental Funds 140,204 Transit 14,864 155,068 Mental Health Services Act Road Fund 1,613 Other Governmental Funds General Fund 90,232 Road Fund 143,551 Realignment Fund 136,498 Other Governmental Funds 25,013 395,294 Transit Other Governmental Funds 74,673 $ 652,063 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 44 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, 2017: Transfers between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Other Governmental Funds $ 466,583 Road Fund General Fund 65,703 Mental Health Services Act Other Governmental Funds 49,697 Realignment Fund General Fund 119,013 Other Governmental Funds 718,593 837,606 Other Governmental Funds General Fund 962,752 Other Governmental Funds 140,255 1,103,007 $ 2,522,596 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 45 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2017 was as follows: Balance Transfers & Balance July 1, 2016 Additions Retirements Adjustments June 30, 2017 Governmental Activities: Total capital assets, not being depreciated Land $ 1,220,599 $ - $ - $ - $ 1,220,599 Construction in progress 580,836 422,759 - - 1,003,595 Total capital assets, not being depreciated 1,801,435 422,759 - - 2,224,194 Total capital assets, being depreciated Structures and improvements 15,057,734 18,815 - - 15,076,549 Equipment 10,923,123 250,605 - - 11,173,728 Infrastructure 34,694,917 - - - 34,694,917 Total capital assets, being depreciated 60,675,774 269,420 - - 60,945,194 Less accumulated depreciation for: Structures and improvements (4,458,156) (486,725) - - (4,944,881) Equipment (7,599,800) (742,237) - - (8,342,037) Infrastructure (33,722,870) (27,407) - - (33,750,277) Total accumulated depreciation (45,780,826) (1,256,369) - - (47,037,195) Total capital assets, being depreciated, net 14,894,948 (986,949) - - 13,907,999 Governmental activities capital assets, net $ 16,696,383 $ (564,190) $ - $ - $ 16,132,193 Business-Type Activities: Total capital assets, being depreciated Equipment $ 143,959 $ - $ - $ - $ 143,959 Total capital assets, being depreciated 143,959 - - - 143,959 Less accumulated depreciation for: Equipment (68,673) (16,784) - - (85,457) Total accumulated depreciation (68,673) (16,784) - - (85,457) Business-Type activities capital assets, net $ 75,286 $ (16,784) $ - $ - $ 58,502 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 46 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, 2017: 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 $ 270,946 Public protection 577,066 Public ways and facilities 235,887 Health and sanitation 43,986 Public assistance 81,495 Education 398 Recreation and cultural services 46,591 Total depreciation expense governmental activities $ 1,256,369 Alpine Transit Service $ 16,784 Balance Balance Amounts Due July 1, 2016 Additions Retirements June 30, 2017 Within One Year Governmental Activities: Capital leases payable $ 1,077,243 $ - $ (72,580) $ 1,004,663 $ 75,327 Net pension liability 8,153,944 3,099,821 (1,041,743) 10,212,022 - Other postemployment benefits 1,181,459 783,844 (450,082) 1,515,221 - Compensated absences 473,657 284,473 (236,829) 521,301 260,651 Liability for claims costs 780,462 161,113 (187,960) 753,615 753,615 $ 11,666,765 $ 4,329,251 $ (1,989,194) $ 14,006,822 $ 1,089,593 Business-type Activities: Net pension liability $ 37,458 $ 12,316 $ (3,641) $ 46,133 $ - $ 37,458 $ 12,316 $ (3,641) $ 46,133 $ - ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 47 Note 6: Capital Lease The County leases certain facilities under a lease obligation accounted for as capital leases where the related facilities will become property of the County when all terms of the lease agreement is met. The following is a summary of the County’s capital lease agreement as of June 30, 2017: Included in the governmental activities are the following capital asset amounts under capital leases: As of June 30, 2017, future minimum lease payments under capital leases were as follows: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2017 Alpine County Government Center 3.75% $ 1,004,663 Accumulated Cost Depreciation Book Value Administration building $ 200,760 $ 12,547 $ 188,213 Community development building 943,884 82,589 861,295 Sheriff secure storage facility 155,356 13,594 141,762 $ 1,300,000 $ 108,730 $ 1,191,270 Year Ending June 30: 2018 $ 112,296 2019 112,296 2020 112,296 2021 112,296 2022 112,296 2023-2027 561,478 2028 112,295 Total Future Minimum Lease Payments 1,235,253 Less: Interest (230,590) Present Value of Minimum Lease Payments $ 1,004,663 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 48 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2017 are as follows: The general reserve is subject to the provisions of Government Code sections 29085, 29086 and 29127, whereby appropriation from the general reserve may be used only in cases of certain emergency situations. Because this stabilization arrangement does not meet the criteria described in GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, to be reported within the restricted or committed fund balance categories, it has been classified as unassigned in these statements. Mental General Road Health Realignment Other Fund Fund Services Act Fund Governmental Total Nonspendable: Permanent funds $ - $ - $ - $ - $ 400,000 $ 400,000 Deposits 1,257,144 - - - - 1,257,144 Prepaid expenses 15,390 1,730 2,758 - 1,848 21,726 Inventories - 135,049 - - - 135,049 Advances 60,000 - - 2,800 62,800 Total Nonspendable 1,332,534 136,779 2,758 - 404,648 1,876,719 Restricted: Public protection - - - 953,152 2,679,903 3,633,055 Public ways and facilities - 1,299,959 - - 383,147 1,683,106 Health and sanitation - - 6,323,622 3,697,274 646,732 10,667,628 Public assistance - - - 4,134,329 465,724 4,600,053 Capital projects - - - - 344,176 344,176 CSA - - - - 635,877 635,877 Other 273,597 - - - 121,443 395,040 Total Restricted 273,597 1,299,959 6,323,622 8,784,755 5,277,002 21,958,935 Committed: Capital projects - - - - 1,193,589 1,193,589 Total Committed - - - - 1,193,589 1,193,589 Assigned: Critical services - - - - - - Sheriff capital replacement - - - - - - Capital projects - - - - 312,509 312,509 Courthouse 380,034 - - - - 380,034 Post-employment benefits 517,019 - - - - 517,019 Eliminate projected 2015-16 - budgetary deficit - - - - - - Other 2,374,562 - - - 54,327 2,428,889 Total Assigned 3,271,615 - - - 366,836 3,638,451 Unassigned 2,674,240 - - - (54,253) 2,619,987 Total Fund Balances $ 7,551,986 $ 1,436,738 $ 6,326,380 $ 8,784,755 $ 7,187,822 $ 31,287,681 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 49 Net position from governmental activities as of June 30, 2017, was restricted for the following purposes: Deficit fund balances / net position as of June 30, 2017, were as follows: Fund deficits in capital project funds are caused by a delay in contributions earmarked to cover expenditures. Fund deficits in the grant funds result from the deferral of revenues collected more than sixty days after the end of the fiscal year. The collection of receivables in the next fiscal year is expected to eliminate the deficit balances. Note 8: County Employees Retirement Plan (Defined Benefit Pension Plan) General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees of Alpine County and Alpine County Superior Court are eligible to participate in the Country’s separate Safety (Sheriff) and Miscellaneous (all others) cost sharing multiple employer defined benefit pension plans, Employee Pension Plans, administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating member employers. Benefit provisions 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 $ 344,176 Public protection 4,412,919 Public ways and facilities 1,828,186 Health and sanitation 10,312,234 Public assistance 4,663,391 County Service Area #1 690,204 Other: Trust for Public Land - nonexpendable 400,000 Administrative Services 121,443 $ 22,772,553 Governmental Funds: District Attorney Victim Witness Grant Grant fund 38,846 COPS Grant Grant fund 791 Alpine County Transportation Commission Transportation fund 4,433 Chamber of Commerce Programs Economic development 31 SNC Prop 84 Grant Grant fund 6,927 Enterprise Fund: Alpine Transit Services Transportation fund 967 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 50 Effective January 1, 2013, the County added retirement tiers for the Miscellaneous Plan and Safety Plan for new employees as required under the Public Employee Pension Reform Act (PEPRA). New employees hired on or after January 1, 2013 will be subject to new, lower pension formulas, caps on pensionable income levels and new definitions of pensionable income. In addition, new employees will be required to contribute half of the total normal cost of the pension benefit unless impaired by an existing Memorandum of Understanding. The cumulative effect of these PEPRA changes will ultimately reduce the County’s retirement costs. As of the valuation date there were no Safety PEPRA employees. Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2017 are summarized as follows: Provision terminated effective January 1, 2015. Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for all Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The County is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Provisions and Benefits Miscellaneous 1st Tier Miscellaneous PEPRA Safety 1st Tier Safety PEPRA Hire date Prior to January 1, 2013 After December 31, 2012 Prior to January 1, 2013 After December 31, 2012 Benefit formula 2% at 55 2% at 62 3% at 50 2.7% at 57 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments for life for life for life for life Retirement age 50-55 50-62 50 50-57 benefits, as a % of eligible compensation 1.426% to 2.418% 1% to 2.5% 3% 2% to 2.7% Required employee contribution rates 7.000% 6.500% 9.000% 12.250% Required employer contribution rates 9.558% 6.930% 21.230% 12.821% Employer paid member contribution rates 2% to 7% depending on length of service None None None ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 51 For the year ended June 30, 2017, 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, 2017, 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, 2016, 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, 2015, rolled forward to June 30, 2016, using standard update procedures. The County’s proportion of the net pension liability was based on a projection of the County’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The County’s proportionate share of the net pension liability for each Plan as of June 30, 2015 and 2016 was as follows: For the year ended June 30, 2017, the County recognized pension expense of $890,471. At June 30, 2017, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Miscellaneous Miscellaneous Safety Safety 1st Tier PEPRA 1st Tier PEPRA Contributions - employer $ 603,876 $ 69,255 $ 359,452 $ 12,801 Proportionate Share of Net Pension Liability Miscellaneous $ 6,549,809 Safety 3,708,346 $ 10,258,155 Miscellaneous Safety Pool Pool Proportion - June 30, 2015 MD 0.19043% 0.07201% Proportion - June 30, 2016 MD 0.18854% 0.07160% Change - Increase (Decrease) -0.00189% -0.00041% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 52 Of the total reported as deferred outflows of resources, $1,094,783 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, 2018. 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 $ 1,094,783 $ - Net differences between expected and actual experience - (11,660) Changes of assumptions - (345,041) Net differences between actual and allocated employer contributions 30,461 (91,940) Adjustments due to differences in proportions - (138,396) Net differences between projected and actual earnings on plan investments 1,758,495 $ 2,883,739 $ (587,037) Year Ended June 30 2018 $ (43,088) 2019 5,287 2020 783,422 2021 456,300 1,201,921 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 53 Actuarial Assumptions The total pension liabilities in the June 30, 2017 actuarial valuations were determined using the following actuarial assumptions for all Plans: The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2015 valuation were based on the results of January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website. Discount Rate The discount rate used to measure the total pension liability was 7.65% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarial assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.65 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section. According to Paragraph 30 of Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. Valuation date June 30, 2015 Measurement date June 30, 2016 Actuarial cost method Entry-age Normal Cost Method Actuarial Assumptions: Discount rate 7.65% Inflation 2.75% Payroll growth 3.0% Projected salary increase Varies by entry age and service depending on age, service and type of employment Investment rate of return 7.50%, net of pension plan investment and administrative expenses, including inflation Mortality Derived using CalPERS' membership data for all funds ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 54 On December 21, 2016 the California Public Employees’ Retirement Board voted to lower the discount rate from 7.5% to 7% over three fiscal years beginning in fiscal year 2017-2018. The discount rate will be decreased 0.125% in the first two fiscal years and 0.250% in the final fiscal year. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. New Strategic Real Return Real Return Asset Class Allocation Years 1-10(1) Years 11+(2) Global Equity 47.00% 4.90% 5.38% Global Fixed Income 19.00% 0.80% 2.27% Inflation Sensitive 6.00% 0.60% 1.39% Private Equity 12.00% 6.60% 6.63% Real Estate 11.00% 2.80% 5.21% Infrastructure and Forestland 3.00% 3.90% 5.36% Liquidity 2.00% -0.40% -0.90% 100.00% An expected inflation of 2.5% used for this period. An expected inflation of 3.0% used for this period. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 55 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, 2017. Note 9: Other Post-Employment Benefits (OPEB) Plan Description The County provides retiree healthcare benefits to qualifying employees retiring directly from the County. Benefits include medical, dental and vision plan coverage and the benefit level is determined by date of hire and length of service. Benefits are provided through the County of Alpine Retiree Healthcare plan, a single-employer defined benefit healthcare plan administered by the County. Retirees not yet eligible for Medicare supplement coverage receive the same coverage and the same cost sharing formula as active employees until age 65. After becoming eligible for Medicare, retirees and/or their dependents who wish to retain coverage must enroll in an available plan offered by AARP. The County pays a specific dollar amount toward the cost of retiree coverage and, depending on the date of employment, may also pay a portion of the coverage for the retiree’s spouse or eligible dependents. Funding Policy The contribution requirements of the plan members and the County are established and may be amended by the County. The County is not pre-funding the plan. Miscellaneous Safety Pool Pool Net pension liability if 1% decreasee $ 10,018,675 $ 5,672,336 Net pension liability if current discount rate 6,549,809 3,708,346 Net pension liability if 1% increase 3,689,663 2,088,999 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 56 Annual OPEB Cost and Net OPEB Obligation The County’s OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC). The ARC is an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The County ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize the unfunded actuarial liability over a period of 30 years. The following table shows the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and the resulting net OPEB obligation. The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and prior two years are as follows: Annual required contribution $ 795,876 Interest on prior year net OPEB obligation 47,258 Amortization of prior year net OPEB obligation (59,291) Annual OPEB Cost 783,843 Payments on behalf of retirees (384,539) Estimated implicit subsidy for current year (65,543) Increase in net OPEB obligation 333,761 Net OPEB obligation, beginning of year, restated 1,181,459 Net OPEB obligation, end of year $ 1,515,220 Net Percentage Net Year Pension Annual of Annual Pension Ended Obligation OPEB Annual OPEB Cost Obligation June 30: Beginning of Year Cost Contributions Contributed End of Year 2015 $ 972,219 $ 553,968 $ 449,006 81.05% $ 1,077,181 2016 1,077,181 574,975 470,697 81.86% 1,181,459 2017 1,181,459 783,843 450,082 57.42% 1,515,220 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 57 Funded Status and Funding Progress The funded status of the plan as of January 1, 2017, the plan’s most recent actuarial valuation date, was as follows: Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the basic financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2017 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 4.0 percent investment rate of return (net of administrative expenses). Salary increases were estimated at 3.25 percent per year. Information on mortality, turnover and retirement rates was based on CalPERS public agency data. Healthcare costs were forecasted to increase by 8.5 percent in 2016, then by ½ percent less each year until 2023 at which time increases would level off at 5 percent per year thereafter. The actuarial value of assets is equal to the market value. The UAAL is being amortized as a level percentage of projected payrolls over 30 years on a closed basis. The remaining amortization period at January 1, 2017 was 23 years. Actuarial accrued liability (AAL) $ 10,233,845 Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) $ 10,233,845 Funded ratio (actuarial value of plan assets / AAL) 0.00% Covered payroll (active plan members) $ 4,919,627 UAAL as a percentage of covered payroll 208.02% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 58 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 2016-2017. The County holds a deposit with Trindel Insurance from which claims are paid. At June 30, 2017, the balance of the deposit was $1,257,144. Each member of Trindel pays an annual premium to the insurance system which is evaluated each year based on the number of personnel, estimated payroll and an experience factor. Changes in the balance of claims liability during the fiscal years ended June 30, 2017 and 2016 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. 2017 2016 Unpaid claims, beginning of year $ 780,462 $ 708,860 Current year claims (including incurred but not reported) 161,113 438,492 Claims payments and changes in estimates (187,960) (366,890) Unpaid claims, end of year $ 753,615 $ 780,462 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2017 59 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, 2017, the County had no ongoing construction commitments. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2017 60 Schedule of Funding Progress – County Postemployment Healthcare Plan Entry Age Normal Actuarial Unfunded Annual UAAL as Valuation Accrued Value of (Overfunded) Funded Covered a % of Date Liability Assets Liability Ratio Payroll Payroll January 1, 2011 $ 7,146,425 $ - $ 7,146,425 0.00% $ 3,809,470 187.60% January 1, 2014 7,919,738 - 7,919,738 0.00% 4,560,109 173.67% January 1, 2017 10,233,845 - 10,233,845 0.00% 4,919,627 208.02% ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2017 61 County Pension Plan Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2017 - Last 10 Years* * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. 2017 2016 2015 Proportion of the net pension liability 0.1185% 0.1193% 0.1247% Proportionate share of the net pension liability $ 10,258,121 $ 8,191,379 $ 7,756,690 Covered payroll $ 4,708,005 $ 4,386,486 $ 4,592,478 Proportionate share of the net pension liability as a percentage of covered employee payroll 217.89% 186.74% 168.90% Plan's fiduciary net position $ 19,769,328 $ 19,736,186 $ 20,796,946 Plan's fiduciary net position as a percentage of the total pension liability 75.11% 79.07% 79.37% NOTES TO THE SCHEDULES Changes in Benefit Terms - None Changes in Assumptions - None ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2017 62 County Pension Plan Schedule of Contributions For the Year Ended June 30, 2017 Last 10 Years* * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. 2017 2016 2015 2014 Contractually required contribution (actuarially determined) $ 1,094,783 $ 1,045,383 $ 875,632 $ 965,036 Contributions in relation to the actuarially determined contributions (1,094,783) (1,045,383) (875,632) (965,036) Contribution defeciency (excess) $ - $ - $ - $ - Covered employee payroll $ 4,818,042 $ 4,708,005 $ 4,386,486 $ 4,592,478 Contributions as a percentage of covered employee payroll 22.72% 22.20% 19.96% 21.01% ---PAGE BREAK--- 63 COUNTY OF ALPINE Budgetary Comparison Schedule General Fund Variance with For the Year Ended June 30, 2017 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 7,067,048 $ 7,067,048 $ 7,067,048 $ - $ RESOURCES (inflows): Taxes 5,746,600 5,746,600 6,204,144 457,544 Licenses and permits 34,455 34,455 21,570 (12,885) Fines, forfeitures and penalties 43,050 43,050 260,436 217,386 Use of money and property 31,784 31,784 46,001 14,217 Intergovernmental 674,463 687,842 899,400 211,558 Charges for services 1,565,198 1,593,129 1,019,981 (573,148) Other revenues 67,980 67,980 159,440 91,460 Transfers from other funds 4,058,097 4,187,411 1,147,468 (3,039,943) Amounts Available for Appropriation 19,288,675 19,459,299 16,825,488 (2,633,811) CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 334,102 348,264 341,174 7,090 County Administrative Officer 227,835 230,330 223,862 6,468 Personnel 258,122 284,669 229,285 55,384 Auditor-Controller 310,894 340,894 334,847 6,047 OMB 87 Central Services 246,634 246,634 232,312 14,322 General Central Services 37,027 37,027 33,172 3,855 Information Technology 310,133 311,487 295,811 15,676 Treasurer-Tax Collector 171,046 171,046 166,166 4,880 Assessor 348,453 350,090 295,342 54,748 Elections 24,882 24,882 20,504 4,378 Buildings & Grounds 457,227 489,227 456,382 32,845 BV Building & Grounds 74,042 74,042 69,251 4,791 Risk Management 841,030 892,577 138,243 754,334 Retiree Benefits 430,000 430,000 381,940 48,060 Legal Counsel 203,588 203,588 187,137 16,451 Contingency 300,000 171,850 - 171,850 Total General Government 4,575,015 4,606,607 3,405,428 1,201,179 Public protection: County Clerk 356,065 357,832 348,807 9,025 Recorder 100,807 102,153 102,971 (818) Surveyor / Engineer 20,000 30,000 26,485 3,515 Grand Jury 17,243 17,243 10,228 7,015 District Attorney 304,546 308,480 296,695 11,785 Public Defender 55,000 55,000 56,818 (1,818) continued ---PAGE BREAK--- 64 COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund Variance with For the Year Ended June 30, 2017 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Sheriff / Coroner 2,786,906 2,825,018 2,776,565 48,453 Jail 55,000 55,000 55,000 - Sheriff Grants 14,000 113,034 104,176 8,858 Communications 166,374 166,374 141,879 24,495 Probation 133,599 134,344 123,980 10,364 Bear Valley Fire Department 67,340 79,340 69,174 10,166 East Slope Fire / EMS 244,924 247,766 251,247 (3,481) Agricultural Commission 13,775 13,775 13,727 48 Planning Department 146,325 146,325 131,688 14,637 Local Agency Formation 4,024 4,024 840 3,184 Total Public Protection 4,485,928 4,655,708 4,510,280 145,428 Health and sanitation: County Emergency Services 86,500 86,500 80,956 5,544 Bear Valley EMS 9,961 9,961 10,481 (520) Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 10,000 10,000 11,142 (1,142) Total Health and Sanitation 128,325 128,325 124,443 3,882 Public assistance: Community Development 501,133 509,060 497,921 11,139 Social Services Assistance 67,850 67,850 13,734 54,116 General Relief 3,750 3,750 375 3,375 Total Public Assistance 572,733 580,660 512,030 68,630 Education: Superintendent of Schools 61,993 61,993 62,025 (32) Library 305,145 311,066 303,489 7,577 Total Education 367,138 373,059 365,514 7,545 Recreation and cultural services: Museum 42,942 43,187 37,964 5,223 Transfers to other funds: General Contribution 3,305,686 3,346,065 438,092 2,907,973 Total Charges to Appropriations 13,477,767 13,733,611 9,393,751 4,339,860 BUDGETARY FUND BALANCE, JUNE 30 5,810,908 $ 5,725,688 $ 7,431,737 $ 1,706,049 $ continued ---PAGE BREAK--- 65 COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2017 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 16,825,488 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (7,067,048) Revenues from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes 197,350 A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes (340,088) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,147,468) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 8,468,234 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 9,393,751 $ Differences - budget to GAAP: Expenditures from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as charges to appropriations for budgetary purposes 117,308 The County does not include the deposit held by the claims administrator for budgetary purposes (68,698) A87 cost reimbursement reported as a reduction of expenditures for financial reporting purposes but is not budgeted as a charge to appropriations for budgetary purposes (340,088) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (438,092) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 8,664,181 $ ---PAGE BREAK--- 66 COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund Variance with For the Year Ended June 30, 2017 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 1,582,878 $ 1,582,878 $ 1,582,878 $ - $ RESOURCES (inflows): Licenses and permits 600 600 690 90 Fines, forfeitures and penalties 700 700 1,537 837 Use of money and property 3,900 3,900 10,449 6,549 Intergovernmental 1,336,512 1,336,512 1,118,816 (217,696) Charges for services 330,000 330,000 569,945 239,945 Other revenues - - 3,163 3,163 Amounts Available for Appropriation 3,254,590 3,254,590 3,287,478 32,888 CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 2,129,309 2,299,309 1,785,037 514,272 Transfers to other funds 67,042 67,042 65,703 1,339 Total Charges to Appropriations 2,196,351 2,366,351 1,850,740 515,611 BUDGETARY FUND BALANCE, JUNE 30 1,058,239 $ 888,239 $ 1,436,738 $ 548,499 $ 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 3,287,478 $ 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 (1,582,878) Equipment rental revenue is generated intrafund and reported as a budgetary resource but eliminated for financial reporting purposes and not considered current-year revenue (143,101) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 1,561,499 $ ---PAGE BREAK--- 67 COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2017 Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,850,740 Differences - budget to GAAP: Equipment rental expenditures is generated intrafund and reported as expenditures for budgetary purposes but eliminated for financial reporting purposes and not considered current-year expenditures (143,101) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (65,703) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,641,936 $ ---PAGE BREAK--- 68 COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act Variance with For the Year Ended June 30, 2017 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 6,464,268 $ 6,464,268 $ 6,464,268 $ - $ RESOURCES (inflows): Use of money and property 25,000 25,000 33,117 8,117 Intergovernmental 1,290,000 1,290,000 1,439,633 149,633 Other revenues - - - - Amounts Available for Appropriation 7,779,268 7,779,268 7,937,018 157,750 CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,817,229 1,825,810 1,560,941 264,869 Transfers out to other funds 230,000 230,000 49,697 180,303 Total Charges to Appropriations 2,047,229 2,055,810 1,610,638 445,172 BUDGETARY FUND BALANCE, JUNE 30 5,732,039 $ 5,723,458 $ 6,326,380 $ 602,922 $ 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 7,937,018 $ 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 (6,464,268) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,472,750 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,610,638 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (49,697) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,560,941 $ ---PAGE BREAK--- 69 COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund Variance with For the Year Ended June 30, 2017 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 7,446,589 $ 7,446,589 $ 7,446,589 $ - $ RESOURCES (inflows): Use of money and property 6,250 6,250 42,794 36,544 Intergovernmental 1,358,500 1,358,500 2,173,702 815,202 Transfer in 21,000 21,000 - (21,000) Amounts Available for Appropriation 8,832,339 8,832,339 9,663,085 830,746 CHARGES TO APPROPRIATIONS (outflows) Public protection 107,088 107,088 40,724 66,364 Transfers out to other funds 597,352 619,756 837,606 (217,850) Total Charges to Appropriations 704,440 726,844 878,330 (151,486) BUDGETARY FUND BALANCE, JUNE 30 8,127,899 $ 8,105,495 $ 8,784,755 $ 679,260 $ 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 9,663,085 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (7,446,589) 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 2,216,496 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 878,330 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (837,606) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 40,724 $ ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information For the Year Ended June 30, 2017 70 BUDGETARY BASIS OF ACCOUNTING In accordance with the provisions of Sections 29000 and 29143, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year. A tentative budget approved no later than June 30 of each year establishes the legal authority for county spending in the following fiscal year until a final budget is adopted on or before October 2nd. Prior to adoption of the final budget, a public hearing is held to receive comments prior to adoption. From the effective date of the budget, which is adopted and controlled at the departmental level, the amounts stated therein as proposed expenditures become appropriations to the various County departments. However, the legal level of control is the fund level. The Board of Supervisors may amend the budget by resolution during the fiscal year. Department heads may, upon approval of the Treasurer- Tax Collector-Auditor Controller and the County Administrative Officer, make transfers from one object or purpose to another within the same budget unit. All other budget amendments must be approved by the County Board of Supervisors. It is the final revised budget that is presented in the required supplementary information section of this financial report. Appropriations lapse at year end. Budgets are adopted for the General Fund, all special revenue funds, permanent fund and capital projects funds. Accounting principles applied for purposes of developing data on a budgetary basis are materially the same as those used to present financial statements in conformity with GAAP, except that transfers are regarded as inflows of resources for budgetary purposes and not revenues for GAAP financial statement presentation purposes and transfers out are considered outflows of resources for budgetary purposes but not expenditures for GAAP financial statement presentation purposes. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION Combining Fund Statements ---PAGE BREAK--- 71 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2017 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 5,886,770 $ 453,412 $ 799,861 $ - $ 7,140,043 $ Accounts receivable 115,607 - - - 115,607 Taxes receivable 29,229 - - - 29,229 Due from other governments 491,579 - - - 491,579 Interest receivable 12,197 915 1,277 - 14,389 Due from other funds 395,294 - - - 395,294 Advance to other funds 2,800 - - - 2,800 Prepaid expenses 1,848 - - - 1,848 Total Assets 6,935,324 $ 454,327 $ 801,138 $ - $ 8,190,789 $ LIABILITIES Accounts payable 275,301 $ - $ 18,578 $ - $ 293,879 $ Accrued salaries and benefits 49,372 - - - 49,372 Due to other funds 258,392 - - - 258,392 Advance from other funds 32,800 - - - 32,800 Total Liabilities 615,865 - 18,578 - 634,443 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 368,524 - - - 368,524 FUND BALANCES Nonspendable 4,648 400,000 - - 404,648 Restricted 4,932,826 - 344,176 - 5,277,002 Committed 1,067,714 - 125,875 - 1,193,589 Assigned - 54,327 312,509 - 366,836 Unassigned (54,253) - - - (54,253) Total Fund Balances 5,950,935 454,327 782,560 - 7,187,822 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,935,324 $ 454,327 $ 801,138 $ - $ 8,190,789 $ ---PAGE BREAK--- 72 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2017 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 323,744 $ - $ - $ - $ 323,744 $ Licenses and permits 69,460 - - - 69,460 Fines, forfeitures and penalties 1,412 - - - 1,412 Use of money and property 44,429 2,310 34,749 - 81,488 Intergovernmental 3,776,500 - - - 3,776,500 Charges for services 586,037 - - - 586,037 Other revenues 136,630 - 59,415 - 196,045 Total Revenues 4,938,212 2,310 94,164 - 5,034,686 EXPENDITURES Current: General government 62,497 2,312 - - 64,809 Public protection 693,328 - - - 693,328 Public ways and facilities 607,857 - - - 607,857 Health and sanitation 1,536,563 - - - 1,536,563 Public assistance 1,203,745 - - - 1,203,745 Education - - - - - Capital outlay 50,484 - 238,226 - 288,710 Debt service: Principal - - - 72,580 72,580 Interest and issuance cost - - - 39,716 39,716 Total Expenditures 4,154,474 2,312 238,226 112,296 4,507,308 Excess (Deficiency) of Revenues Over (Under) Expenditures 783,738 (144,062) (112,296) 527,378 OTHER FINANCING SOURCES AND USES Transfers in 970,993 - 291,839 112,296 1,375,128 Transfers out (1,103,007) - - - (1,103,007) Total Other Financing Sources (Uses) (132,014) - 291,839 112,296 272,121 NET CHANGES IN FUND BALANCES 651,724 147,777 - 799,499 Fund Balances, Beginning of Year (Restated) 5,299,211 454,329 634,783 - 6,388,323 FUND BALANCES, END OF YEAR 5,950,935 $ 454,327 $ 782,560 $ - $ 7,187,822 $ ---PAGE BREAK--- 73 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2017 State Public Environmental Mental Drug and Health Health Health Alcohol ASSETS Cash and investments 71,903 $ 32,777 $ 82,092 $ 344,263 $ Accounts receivable 25 273 - 129 Taxes receivable - - - - Due from other governments 47,844 4,806 - 128,152 Interest receivable 75 26 188 441 Due from other funds 30,068 - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 149,915 $ 37,882 $ 82,280 $ 472,985 $ LIABILITIES Accounts payable 6,981 $ 6,938 $ 15,347 $ 5,308 $ Accrued salaries and benefits 7,841 171 2,119 7,357 Due to other funds 150 - 135 - Advance from other funds - - - - Total Liabilities 14,972 7,109 17,601 12,665 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 45,941 1,526 - 128,152 FUND BALANCES Nonspendable - - - - Restricted 89,002 29,247 64,679 332,168 Committed - - - - Unassigned - - - - Total Fund Balances 89,002 29,247 64,679 332,168 Total Liabilities, Deferred Inflows of Resources and Fund Balances 149,915 $ 37,882 $ 82,280 $ 472,985 $ continued ---PAGE BREAK--- 74 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 Prop 36 Social One-Stop SACPA Services Services Tobacco ASSETS Cash and investments - $ 445,707 $ 13,760 $ 91,366 $ Accounts receivable - 275 3,654 - Taxes receivable - - - - Due from other governments - 57,741 - - Interest receivable - 892 30 209 Due from other funds - 110,339 - - Advance to other funds - - - - Prepaid expenses - 1,208 - - Total Assets - $ 616,162 $ 17,444 $ 91,575 $ LIABILITIES Accounts payable - $ 75,498 $ 129 $ 5,801 $ Accrued salaries and benefits - 17,779 550 2,802 Due to other funds - 14,977 - - Advance from other funds - - - - Total Liabilities - 108,254 679 8,603 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 57,741 - - FUND BALANCES Nonspendable - 1,208 - - Restricted - 448,959 16,765 82,972 Committed - - - - Unassigned - - - - Total Fund Balances - 450,167 16,765 82,972 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 616,162 $ 17,444 $ 91,575 $ continued ---PAGE BREAK--- 75 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 Water Fish and Rights Game Building Airport ASSETS Cash and investments - $ 55,517 $ 10,001 $ 33,326 $ Accounts receivable - 49 - - Taxes receivable - - - - Due from other governments - - - - Interest receivable - 125 (30) 60 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - 215 - Total Assets - $ 55,691 $ 10,186 $ 33,386 $ LIABILITIES Accounts payable - $ 6,780 $ 2,608 $ - $ Accrued salaries and benefits - - 3,812 - Due to other funds - - - - Advance from other funds - - - - Total Liabilities - 6,780 6,420 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - 215 - Restricted - 48,911 3,551 33,386 Committed - - - - Unassigned - - - - Total Fund Balances - 48,911 3,766 33,386 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 55,691 $ 10,186 $ 33,386 $ continued ---PAGE BREAK--- 76 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund ASSETS Cash and investments 15,168 $ - $ 155,764 $ 953,404 $ Accounts receivable - - - 97,757 Taxes receivable - - - - Due from other governments - 74,260 23,729 1,254 Interest receivable 30 (88) 323 1,924 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - 425 - - Total Assets 15,198 $ 74,597 $ 179,816 $ 1,054,339 $ LIABILITIES Accounts payable - $ 1,439 $ 20,258 $ 2,332 $ Accrued salaries and benefits - 1,990 - - Due to other funds - 49,494 - - Advance from other funds - 30,000 - - Total Liabilities - 82,923 20,258 2,332 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 30,520 - 1,254 FUND BALANCES Nonspendable - 425 - - Restricted 15,198 - 159,558 1,050,753 Committed - - - - Unassigned - (39,271) - - Total Fund Balances 15,198 (38,846) 159,558 1,050,753 Total Liabilities, Deferred Inflows of Resources and Fund Balances 15,198 $ 74,597 $ 179,816 $ 1,054,339 $ continued ---PAGE BREAK--- 77 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants ASSETS Cash and investments - $ 281,502 $ - $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable - 574 - - Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets - $ 282,076 $ - $ - $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 791 - - - Advance from other funds - - - - Total Liabilities 791 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 282,076 - - Committed - - - - Unassigned (791) - - - Total Fund Balances (791) 282,076 - - Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 282,076 $ - $ - $ continued ---PAGE BREAK--- 78 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 State Law Assessor's Recorder's OES Enforcement Special Special Grants AB443 Revenue Fund Revenue Fund ASSETS Cash and investments - $ 644,303 $ 30,194 $ 75,839 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable - 2,305 60 152 Due from other funds - 90,233 - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets - $ 736,841 $ 30,254 $ 75,991 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds - - - - Advance from other funds - - - - Total Liabilities - - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 736,841 30,254 75,991 Committed - - - - Unassigned - - - - Total Fund Balances - 736,841 30,254 75,991 Total Liabilities, Deferred Inflows of Resources and Fund Balances - $ 736,841 $ 30,254 $ 75,991 $ continued ---PAGE BREAK--- 79 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste ASSETS Cash and investments 2,425 $ 639,270 $ 308,854 $ 72,271 $ Accounts receivable - - - - Taxes receivable - 15,838 - - Due from other governments - - - - Interest receivable 5 1,283 577 131 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 2,430 $ 656,391 $ 309,431 $ 72,402 $ LIABILITIES Accounts payable - $ 5,093 $ - $ 37,936 $ Accrued salaries and benefits - - 1,880 - Due to other funds - 2,000 - - Advance from other funds - - - - Total Liabilities - 7,093 1,880 37,936 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 13,421 - - FUND BALANCES Nonspendable - - - - Restricted 2,430 635,877 307,551 34,466 Committed - - - - Unassigned - - - - Total Fund Balances 2,430 635,877 307,551 34,466 Total Liabilities, Deferred Inflows of Resources and Fund Balances 2,430 $ 656,391 $ 309,431 $ 72,402 $ continued ---PAGE BREAK--- 80 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs ASSETS Cash and investments - $ 262,984 $ 17,948 $ 2,362 $ Accounts receivable - - - - Taxes receivable - 12,200 1,191 - Due from other governments 59,859 - - - Interest receivable (71) 516 35 - Due from other funds 20,000 143,551 - - Advance to other funds 2,800 - - - Prepaid expenses - - - - Total Assets 82,588 $ 419,251 $ 19,174 $ 2,362 $ LIABILITIES Accounts payable 11,374 $ - $ - $ 2,393 $ Accrued salaries and benefits - - - - Due to other funds 75,647 105,000 - - Advance from other funds - 2,800 - - Total Liabilities 87,021 107,800 - 2,393 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable 2,800 - - - Restricted - 311,451 19,174 - Committed - - - - Unassigned (7,233) - - (31) Total Fund Balances (4,433) 311,451 19,174 (31) Total Liabilities, Deferred Inflows of Resources and Fund Balances 82,588 $ 419,251 $ 19,174 $ 2,362 $ continued ---PAGE BREAK--- 81 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 Title III SNC Fire Secure Rural Court Prop. 84 Protection Schools Services Grant ASSETS Cash and investments 21,617 $ 57,991 $ 28,646 $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - 3,966 Interest receivable 39 120 48 (10) Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 21,656 $ 58,111 $ 28,694 $ 3,956 $ LIABILITIES Accounts payable $ - $ 28,585 $ 4,775 $ Accrued salaries and benefits - - - - Due to other funds - - - 6,108 Advance from other funds - - - - Total Liabilities - 28,585 10,883 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 21,657 58,111 109 - Committed - - - - Unassigned - - - (6,927) Total Fund Balances 21,657 58,111 109 (6,927) Total Liabilities, Deferred Inflows of Resources and Fund Balances 21,656 $ 58,111 $ 28,694 $ 3,956 $ continued ---PAGE BREAK--- 82 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 Woodstove Public Behavioral Public Replacement Health Health Safety Program Misc. Grants Misc. Grants Misc. Grants ASSETS Cash and investments 11,834 $ 41,615 $ 19 $ 48 $ Accounts receivable - 13,445 - - Taxes receivable - - - - Due from other governments - 89,968 - - Interest receivable 24 70 - - Due from other funds - 1,103 - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 11,858 $ 146,201 $ 19 $ 48 $ LIABILITIES Accounts payable - $ 34,892 $ - $ - $ Accrued salaries and benefits - 3,071 - - Due to other funds - 4,090 - - Advance from other funds - - - - Total Liabilities - 42,053 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 89,969 - - FUND BALANCES Nonspendable - - - - Restricted 11,858 14,179 19 48 Committed - - - - Unassigned - - - - Total Fund Balances 11,858 14,179 19 48 Total Liabilities, Deferred Inflows of Resources and Fund Balances 11,858 $ 146,201 $ 19 $ 48 $ continued ---PAGE BREAK--- 83 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2017 Other Miscellaneous STPUD Grants Mitigation Total ASSETS Cash and investments 16,419 $ 1,065,581 $ 5,886,770 $ Accounts receivable - - 115,607 Taxes receivable - - 29,229 Due from other governments - - 491,579 Interest receivable - 2,133 12,197 Due from other funds - - 395,294 Advance to other funds - - 2,800 Prepaid expenses - - 1,848 Total Assets 16,419 $ 1,067,714 $ 6,935,324 $ LIABILITIES Accounts payable 834 $ - $ 275,301 $ Accrued salaries and benefits - - 49,372 Due to other funds - - 258,392 Advance from other funds - - 32,800 Total Liabilities 834 - 615,865 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 368,524 FUND BALANCES Nonspendable - - 4,648 Restricted 15,585 - 4,932,826 Committed - 1,067,714 1,067,714 Unassigned - - (54,253) Total Fund Balances 15,585 1,067,714 5,950,935 Total Liabilities, Deferred Inflows of Resources and Fund Balances 16,419 $ 1,067,714 $ 6,935,324 $ ---PAGE BREAK--- 84 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2017 State Public Environmental Mental Drug and Health Health Health Alcohol REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 10,533 90 618 1,379 Intergovernmental 175,112 24,291 95,066 273,385 Charges for services 52,569 72,795 - - Other revenues 502 1,893 - - Total Revenues 238,716 99,069 95,684 274,764 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 384,327 115,098 190,576 347,471 Public assistance - - - - Capital outlay 802 - - - Total Expenditures 385,129 115,098 190,576 347,471 Excess (Deficiency) of Revenues Over (Under) Expenditures (146,413) (16,029) (94,892) (72,707) OTHER FINANCING SOURCES (USES) Transfers in 168,715 20,000 - 11,587 Transfers out (1,547) - - - Total Other Financing Sources (Uses) 167,168 20,000 - 11,587 NET CHANGES IN FUND BALANCES 20,755 3,971 (94,892) (61,120) Fund Balances, Beginning of Year 68,247 25,276 159,571 393,288 FUND BALANCES, END OF YEAR 89,002 $ 29,247 $ 64,679 $ 332,168 $ continued ---PAGE BREAK--- 85 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2017 Prop 36 Social One-Stop SACPA Services Services Tobacco REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property - 5,474 76 541 Intergovernmental - 744,797 73,388 122,916 Charges for services - - - - Other revenues - 8,610 - - Total Revenues - 758,881 73,464 123,457 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - - - 164,861 Public assistance - 1,143,055 60,690 - Capital outlay - 13,649 - - Total Expenditures - 1,156,704 60,690 164,861 Excess (Deficiency) of Revenues Over (Under) Expenditures - (397,823) 12,774 (41,404) OTHER FINANCING SOURCES (USES) Transfers in - 543,885 - - Transfers out - (2,944) - (4,614) Total Other Financing Sources (Uses) - 540,941 - (4,614) NET CHANGES IN FUND BALANCES - 143,118 12,774 (46,018) Fund Balances, Beginning of Year - 307,049 3,991 128,990 FUND BALANCES, END OF YEAR - $ 450,167 $ 16,765 $ 82,972 $ continued ---PAGE BREAK--- 86 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2017 Water Fish and Rights Game Building Airport REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - 69,460 - Fines, forfeitures and penalties - 809 - - Use of money and property - 167 (210) 128 Intergovernmental - 110 - 10,000 Charges for services - 54,000 28,666 - Other revenues - - 41 - Total Revenues - 55,086 97,957 10,128 EXPENDITURES Current: General government - - - - Public protection - 42,817 170,984 - Public ways and facilities - - - 5,515 Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 42,817 170,984 5,515 Excess (Deficiency) of Revenues Over (Under) Expenditures - 12,269 (73,027) 4,613 OTHER FINANCING SOURCES (USES) Transfers in - - 75,000 - Transfers out - - - - Total Other Financing Sources (Uses) - - 75,000 - NET CHANGES IN FUND BALANCES - 12,269 1,973 4,613 Fund Balances, Beginning of Year - 36,642 1,793 28,773 FUND BALANCES, END OF YEAR - $ 48,911 $ 3,766 $ 33,386 $ 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, 2017 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 77 (128) 808 4,479 Intergovernmental - 93,937 124,341 391,028 Charges for services - - - - Other revenues - - - - Total Revenues 77 93,809 125,149 395,507 EXPENDITURES Current: General government - - - - Public protection - 71,799 96,863 11,706 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - 36,033 - - Total Expenditures - 107,832 96,863 11,706 Excess (Deficiency) of Revenues Over (Under) Expenditures 77 (14,023) 28,286 383,801 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (4,300) (10,600) Total Other Financing Sources (Uses) - - (4,300) (10,600) NET CHANGES IN FUND BALANCES 77 (14,023) 23,986 373,201 Fund Balances, Beginning of Year 15,121 (24,823) 135,572 677,552 FUND BALANCES, END OF YEAR 15,198 $ (38,846) $ 159,558 $ 1,050,753 $ 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, 2017 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 6 1,410 (30) Intergovernmental - 123,060 - - Charges for services - - - - Other revenues - - - - Total Revenues 6 124,470 (30) EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 6 124,470 (30) OTHER FINANCING SOURCES (USES) Transfers in 14,788 4,822 1,300 - Transfers out (11,847) (140,000) (1,654) (17,966) Total Other Financing Sources (Uses) 2,941 (135,178) (354) (17,966) NET CHANGES IN FUND BALANCES 2,947 (10,708) (355) (17,996) Fund Balances, Beginning of Year (3,738) 292,784 355 17,996 FUND BALANCES, END OF YEAR (791) $ 282,076 $ - $ - $ 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, 2017 State Law OES Enforcement Assessor's Recorder's FEMA AB443 Trust Trust REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 11 6,176 148 372 Intergovernmental - 503,050 - - Charges for services - - - - Other revenues - - 3,752 4,010 Total Revenues 11 509,226 3,900 4,382 EXPENDITURES Current: General government - - 2,497 - Public protection - (29,444) - 7,015 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - (29,444) 2,497 7,015 Excess (Deficiency) of Revenues Over (Under) Expenditures 11 538,670 1,403 (2,633) OTHER FINANCING SOURCES (USES) Transfers in 6,806 90,233 - - Transfers out - (575,233) - - Total Other Financing Sources (Uses) 6,806 (485,000) - - NET CHANGES IN FUND BALANCES 6,817 53,670 1,403 (2,633) Fund Balances, Beginning of Year (6,817) 683,171 28,851 78,624 FUND BALANCES, END OF YEAR - $ 736,841 $ 30,254 $ 75,991 $ 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, 2017 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste REVENUES Taxes - $ 263,744 $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - 603 - - Use of money and property 10 3,458 1,132 255 Intergovernmental - 353 - - Charges for services - - 284,963 61,673 Other revenues - - - - Total Revenues 10 268,158 286,095 61,928 EXPENDITURES Current: General government - - - - Public protection 1,737 - 52,391 - Public ways and facilities - 351,182 - - Health and sanitation - - - 68,032 Public assistance - - - - Capital outlay - - - - Total Expenditures 1,737 351,182 52,391 68,032 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,727) (83,024) 233,704 (6,104) OTHER FINANCING SOURCES (USES) Transfers in - 1,000 - 2,000 Transfers out - - (189,167) - Total Other Financing Sources (Uses) - 1,000 (189,167) 2,000 NET CHANGES IN FUND BALANCES (1,727) (82,024) 44,537 (4,104) Fund Balances, Beginning of Year 4,157 717,901 263,014 38,570 FUND BALANCES, END OF YEAR 2,430 $ 635,877 $ 307,551 $ 34,466 $ 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, 2017 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs REVENUES Taxes - $ - $ - $ 60,000 $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (139) 1,085 84 (43) Intergovernmental 198,253 277,668 6,543 - Charges for services - - - - Other revenues - - - - Total Revenues 198,114 278,753 6,627 59,957 EXPENDITURES Current: General government - - - 60,000 Public protection - - - - Public ways and facilities 146,160 105,000 - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 146,160 105,000 - 60,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 51,954 173,753 6,627 (43) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGES IN FUND BALANCES 51,954 173,753 6,627 (43) Fund Balances, Beginning of Year (56,387) 137,698 12,547 12 FUND BALANCES, END OF YEAR (4,433) $ 311,451 $ 19,174 $ (31) $ 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, 2017 Title III SNC Fire Secure Rural Court Prop. 84 Protection Schools Services Grant REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 94 301 85 (191) Intergovernmental - - - 133,991 Charges for services - - - - Other revenues 3,921 - - - Total Revenues 4,015 301 85 133,800 EXPENDITURES Current: General government - - - - Public protection - 67,104 28,585 117,010 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 67,104 28,585 117,010 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,015 (66,803) (28,500) 16,790 OTHER FINANCING SOURCES (USES) Transfers in - - 28,491 - Transfers out - - - - Total Other Financing Sources (Uses) - - 28,491 - NET CHANGES IN FUND BALANCES 4,015 (66,803) 16,790 Fund Balances, Beginning of Year 17,642 124,914 118 (23,717) FUND BALANCES, END OF YEAR 21,657 $ 58,111 $ 109 $ (6,927) $ 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, 2017 Woodstove Pubic Behavioral Public Replacement Health Health Safety Program Misc. Grants Misc. Grants Misc. Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 55 680 - Intergovernmental - 405,211 - - Charges for services - - - - Other revenues - - - - Total Revenues 55 405,891 - EXPENDITURES Current: General government - - - - Public protection 52,892 - - - Public ways and facilities - - - - Health and sanitation - 266,198 - - Public assistance - - - - Capital outlay - - - - Total Expenditures 52,892 266,198 - - Excess (Deficiency) of Revenues Over (Under) Expenditures (52,837) 139,693 - OTHER FINANCING SOURCES (USES) Transfers in - 2,366 - - Transfers out - (25,935) - (4,904) Total Other Financing Sources (Uses) - (23,569) - (4,904) NET CHANGES IN FUND BALANCES (52,837) 116,124 - (4,912) Fund Balances, Beginning of Year 64,695 (101,945) 19 4,960 FUND BALANCES, END OF YEAR 11,858 $ 14,179 $ 19 $ 48 $ 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, 2017 Other Miscellaneous STPUD Grants Mitigation Total REVENUES Taxes - $ - $ 323,744 $ Licenses and permits - - 69,460 Fines, forfeitures and penalties - - 1,412 Use of money and property (23) 5,470 44,429 Intergovernmental - - 3,776,500 Charges for services - 31,371 586,037 Other revenues - 113,901 136,630 Total Revenues (23) 150,742 4,938,212 EXPENDITURES Current: General government - - 62,497 Public protection 1,869 - 693,328 Public ways and facilities - - 607,857 Health and sanitation - - 1,536,563 Public assistance - - 1,203,745 Capital outlay - - 50,484 Total Expenditures 1,869 - 4,154,474 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,892) 150,742 783,738 OTHER FINANCING SOURCES (USES) Transfers in - - 970,993 Transfers out - (112,296) (1,103,007) Total Other Financing Sources (Uses) - (112,296) (132,014) NET CHANGES IN FUND BALANCES (1,892) 38,446 651,724 Fund Balances, Beginning of Year 17,477 1,029,268 5,299,211 FUND BALANCES, END OF YEAR 15,585 $ 1,067,714 $ 5,950,935 $ ---PAGE BREAK--- 95 COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2017 Leviathan Accumulated Markleeville Peak Capital Pipeline Vehicle Communications Outlay Prop 50 Grant Replacement Tower ASSETS Cash and investments 133,672 $ - $ 182,934 $ 70,050 $ Interest receivable - - 371 141 Total Assets 133,672 $ - $ 183,305 $ 70,191 $ LIABILITIES Accounts payable 4,468 $ - $ - $ - $ Total Liabilities 4,468 - - - FUND BALANCES Restricted - - - 70,191 Committed - - - - Assigned 129,204 - 183,305 - Unassigned - - - - Total Fund Balances 129,204 - 183,305 70,191 Total Liabilities, Deferred Inflows of Resources and Fund Balances 133,672 $ - $ 183,305 $ 70,191 $ continued ---PAGE BREAK--- 96 COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2017 Inter Alpine Communications MHSA County Capital Capital Government Maintenance Facility Center Total ASSETS Cash and investments 125,639 $ 287,566 $ - $ 799,861 $ Interest receivable 239 526 - 1,277 Total Assets 125,878 $ 288,092 $ - $ 801,138 $ LIABILITIES Accounts payable 3 $ 14,107 $ - $ 18,578 $ Total Liabilities 3 14,107 - 18,578 Fund Balances: Restricted - 273,985 - 344,176 Committed 125,875 - - 125,875 Assigned - - - 312,509 Unassigned - - - - Total Fund Balances 125,875 273,985 - 782,560 Total Liabilities, Deferred Inflows of Resources and Fund Balances 125,878 $ 288,092 $ - $ 801,138 $ ---PAGE BREAK--- 97 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended June 30, 2017 Leviathan Accumulated Markleeville Peak Capital Pipeline Vehicle Communications Outlay Prop 50 Grant Replacement Tower REVENUES Use of money and property (52) $ - $ 916 $ 356 $ Other revenues - - 59,415 - Total Revenues (52) - 60,331 356 EXPENDITURES Capital outlay 103,715 - 74,488 - Total Expenditures 103,715 - 74,488 - Excess (Deficiency) of Revenues Over (Under) Expenditures (103,767) - (14,157) 356 OTHER FINANCING SOURCES (USES) Transfers in 206,099 - 36,043 - Total Other Financing Sources (Uses) 206,099 - 36,043 - NET CHANGES IN FUND BALANCES 102,332 - 21,886 356 Fund Balances, Beginning of Year, as restated 26,872 - 161,419 69,835 FUND BALANCES, END OF YEAR 129,204 $ - $ 183,305 $ 70,191 $ continued ---PAGE BREAK--- 98 COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Capital Projects Funds For the Year Ended June 30, 2017 Inter Alpine Communications MHSA County Capital Capital Government Maintenance Facility Center Total REVENUES Use of money and property 32,206 $ 1,323 $ - $ 34,749 $ Other revenues - - - 59,415 Total Revenues 32,206 1,323 - 94,164 EXPENDITURES Capital outlay 10,326 49,697 - 238,226 Total Expenditures 10,326 49,697 - 238,226 Excess (Deficiency) of Revenues Over (Under) Expenditures 21,880 (48,374) - (144,062) OTHER FINANCING SOURCES (USES) Transfers in - 49,697 - 291,839 Total Other Financing Sources (Uses) - 49,697 - 291,839 NET CHANGES IN FUND BALANCES 21,880 1,323 - 147,777 Fund Balances, Beginning of Year, as restated 103,995 272,662 - 634,783 FUND BALANCES, END OF YEAR 125,875 $ 273,985 $ - $ 782,560 $