Document alpinecountyca_gov_doc_c794c5ea59

COUNTY OF ALPINE, CALIFORNIA ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2020 ---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 29-61 Required Supplementary Information: County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability 62 County Pension Plan – Schedule of Contributions 62 County OPEB Plan - Schedule of Changes in net OPEB Liability and Related Ratios 63 Budgetary Comparison Schedules: General Fund 64-66 Road Fund 67-68 Mental Health Services Act 69 Realignment Fund 70 Social Services Fund 71 Note to Required Supplementary Information 72 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Combining Balance Sheet 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 74 Nonmajor Special Revenue Funds: Combining Balance Sheet 75-84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 85-94 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, 2020, 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 Alpine County Children and Families Commission (the “Commission”), which represent 100 percent of the assets, net position, and revenues of the discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Commission, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. ---PAGE BREAK--- 2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business- type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County of Alpine, California as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4-17, County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability and County Pension Plan – Schedule of Contributions on page 62, County OPEB Plan Schedule of Changes in Net OPEB Liability and Related Ratios on page 63, and Budgetary Comparison Schedules on pages 64-72 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with 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 and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. ---PAGE BREAK--- 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2021, 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 solely 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 the effectiveness of the County’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Clovis, California December 20, 2021 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 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, 2020. 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 $28,508,553 (net position). Unrestricted net position which normally is discretionary and available to meet ongoing obligations to citizens and creditors had a deficit of $16,264,823. $23,456,990 is restricted and must be used only for specific purposes and $21,316,386 is net investment in capital assets. • As of June 30, 2020, the County’s governmental funds reported combined fund balances of $30,562,366, a decrease of $2,049,064 due to a $4.2 million increase in capital outlay expenditures primarily on the MHSA Wellness Center and multiple bridge rehabilitation projects, offset by a $2.3 increase in intergovernmental revenues. • Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 90.42% of ending fund balance. Of this amount, $20,972,733 is restricted by law or externally imposed requirements, $1,252,654 is committed for specific purposes, $3,985,966 is assigned for specific purposes based on the intent of the Board of Supervisors, including $1,000,000 set aside as the County’s general reserve for emergencies and the remaining $1,423,700 is unassigned. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $1,688,507, or 17.49% of total General Fund expenditures, is available for spending towards operations in subsequent years. • The County’s capital asset balances increased by $4,583,770 or 26.19% over the prior fiscal year. The increase results primarily from new purchases of $7,249,362 and construction additions of $5,332,857 offset by $6,931,211 in construction projects that were completed and depreciation of $1,056,122. • The County’s long-term liabilities increased by $1,433,023 or 4.89% during the current fiscal year. Increases of $683,048 in other post-employment benefits (OPEB) liability, $837,242 in net pension liability and $54,596 in compensated absences were offset by a decrease of $60,725 in the claims liability and a decrease of $81,138 in the capital lease. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 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, 2020 6 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on how cash and other financial assets can readily be converted to available resources and the balances left at year-end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the County’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains several individual governmental funds organized according to their type (special revenue, permanent, debt service and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the Road Fund, the Mental Health Services Act Fund, the Realignment Fund, the Social Services Fund, and the MHSA Capital Facility Fund all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The County adopts an annual appropriated budget for its General Fund, special revenue, permanent, debt service and capital projects funds. A budgetary comparison schedule has been provided for the General Fund and each major special revenue fund to demonstrate compliance with the budget. Proprietary Funds The County maintains one of two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses an enterprise fund to account for Alpine County Transit. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 7 Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is like that used for proprietary funds. Notes to the financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County’s progress in funding its OPEB obligation, information about the County’s proportionate share of the net pension liability and pension contributions, and also the budgetary comparison schedules for the General Fund and each major special revenue fund. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary of Net Position As of June 30, 2020 and 2019 (in thousands) As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets and deferred outflows exceeded liabilities and deferred inflows by $28.5 million at the close of the most recent fiscal year, increasing $0.8 million, or 3.0% 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 decreased $1.5 million, or 6.0%. All of the decrease is the use of resources from the Realignment funds. The next largest portion of the County’s net position is its net investment in capital assets land, infrastructure, buildings and improvements and machinery and equipment), less any related outstanding debt used to acquire those assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Unrestricted net position decreased by $2.3 million primarily because of a $4.6 million increase in capital assets due to the completion of the MHSA facility and the completion and continued work on many capital projects. Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Assets: Current and other assets $ 32,931 $ 35,204 $ 52 $ 94 $ 32,983 $ 35,298 Capital assets, net 22,057 17,459 29 44 22,086 17,503 Total assets 54,988 52,663 81 138 55,069 52,801 Deferred Outflows 6,278 6,483 19 21 6,297 6,504 Liabilities: Current and other liabilities 1,623 1,266 58 94 1,681 1,360 Long-term liabilities 30,158 29,211 74 73 30,232 29,284 Total liabilities 31,781 30,477 132 167 31,913 30,644 Deferred Inflows 940 977 4 5 944 982 Net Position: Net Investment in capital assets 21,287 16,608 29 44 21,316 16,652 Restricted net position 23,457 24,945 - - 23,457 24,945 Unrestricted net position (16,199) (13,861) (65) (57) (16,264) (13,918) Total net position $ 28,545 $ 27,692 $ (36) $ (13) $ 28,509 $ 27,679 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 9 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. The following table shows the changes in net position for governmental and business-type activities. Changes in Net Position Year ended June 30, 2020 and 2019 (in thousands) Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Revenues: Program revenues: Charges for services $ 1,367 $ 1,681 $ 4 $ 13 $ 1,371 $ 1,694 Operating grants and contributions 11,409 9,633 74 91 11,483 9,724 Capital grants and contributions - - - - - - General revenues: - - Property taxes 5,611 5,516 - - 5,611 5,516 Sales taxes 186 316 - - 186 316 Other taxes 724 785 - - 724 785 Unrestricted investment earnings 687 821 - 1 687 822 Non-program grant revenues 261 218 - - 261 218 Gain on sale of assets (16) 151 - - (16) 151 Total revenues 20,229 19,121 78 105 20,307 19,226 Expenses: General government 4,373 4,767 - - 4,373 4,767 Public protection 6,390 5,720 - - 6,390 5,720 Public ways and facilities 2,572 2,083 - - 2,572 2,083 Health and sanitation 3,465 5,193 - - 3,465 5,193 Public assistance 2,078 1,804 - - 2,078 1,804 Education 385 350 - - 385 350 Recreation 82 97 - - 82 97 Interest on long-term debt 31 34 - - 31 34 Alpine County Transit - - 101 116 101 116 Total expenses 19,376 20,048 101 116 19,477 20,164 Change in net position 853 (927) (23) (11) 830 (938) Net position at beginning of year 27,692 28,619 (13) 27,679 28,617 Restatements - - - - - - Net position at end of the year $ 28,545 $ 27,692 $ (36) $ (13) $ 28,509 $ 27,679 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 10 Expenses and Program Revenues – Governmental Activities Year ended June 30, 2020 (in thousands) 0 1000 2000 3000 4000 5000 6000 7000 Program Revenues Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 11 Revenues by Source – Governmental Activities Year ended June 30, 2020 Analysis of Revenues The County’s revenues increased by $1.1 million or 5.62%. Significant changes from last fiscal year are summarized below: • Minor decreases in many charges for services resulted in a combined decrease of approximately $161,025 over the prior year. • Interest earnings decreased by $128,762 over the prior year. • State Exchange Matching road funds decreased $418,930 over the prior year. • Gain on sale of assets resulted in an decrease of $134,938 over the prior year. • CalOES Power Shutoff funds of $150,299 new in the current year. • State grants used for health services increased $491,560 due to a new supplemental nutritional assistance program education grant in the current year. • State grants used for community development and roads increased $314,606. $137,629 for CalFire Hazzard Mitigation Reimbursements and $176,977 for Hot Springs Road Rehabilitation grant from State Department of Transportation. • Federal funds used for health services increased $361,898 from the prior year. This increase was primarily due to a $304,375 increase in drug & alcohol grant funding, a $241,390 increase in CDC funding, offset by a $169,198 decrease in HPP funding over prior year. Charges for services 6.75% Operating grants and contributions 56.31% Capital grants and contributions 0.00% Property taxes 27.69% Sales taxes 0.92% Other taxes 3.57% Unrestricted investment earnings 3.39% Non-program grant revenues 1.29% Gain/(Loss) on sale of assets -0.08% Revenues ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 12 • Federal funds used for law enforcement/emergency services decreased $160,002. This decrease was due to a $210,796 decrease in federal grant money from prior year. • Federal funds used for roads increased $1,862,872. This increase was due to the County Road Improvement Fund receiving new federal grant moneys in the current 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. Tax revenues (property, sales, transient occupancy and other taxes) decrease $95,723 from the prior year. Specifically, property tax increased $94,944, sales and use tax decreased $129,346, transient occupancy tax decreased $87,703 in the current year. The General Fund’s property tax receivable decreased by about 20.79% from $368,442 at June 30, 2019 to $445,034 at June 30, 2020. Expenses by Function/Program Year ended June 30, 2020 Analysis of Expenses The County’s expenses decreased by $0.7 million, or 3.41%. Significant changes from last fiscal year are summarized below: • Salary costs increased $102,354. This increase is due to step and COLA increases. • Overtime costs were $75,917 more than the prior year. General government 22.57% Public protection 32.98% Public ways and facilities 13.27% Health and sanitation 17.89% Public assistance 10.72% Education 1.99% Recreation 0.42% Interest on long- term debt 0.16% Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 13 • Certain employee benefits including health insurance and retirement contributions were $394,049 more due to filling vacancies, increased medical premiums and higher retirement unfunded actuarial liability and contribution rates. • Snow removal services decreased $167,744 from the prior year. • Miscellaneous professional services were $191,389 more than the prior year. • Return of Tobacco and Mental Health Services Act funding was $1,535,478 less than prior year. • The combined cost of conferences, travel and training was $155,968 less than prior year. • 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 $53,234 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 decreased $8,382 over last year while expenses were $14,139 less, due to decrease in salaries and benefits and fuel, offset by an increase in vehicle maintenance and depreciation. 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, 2020, the County’s governmental funds reported combined ending fund balances of $30,562,366, a decrease of $2,049,064, in comparison with the prior year. The components of fund balance are as follows, and with the exception of nonspendable fund balance, are available for appropriation at any time: • Nonspendable fund balance, $2,927,313, 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 $2,224,148 held by Trindel, the County’s insurance claims processor. Nonspendable fund balance also includes $473,691 representing the corpus portion of the County’s one permanent fund, $166,674 in Inventories held in the Road Fund and $62,800 in Advances made to other governmental funds. • Restricted fund balance, $20,972,733, consists of amounts with constraints externally imposed by creditors, grantors, laws, regulations and enabling legislation. While these amount are available for appropriation at any time, the nature of the expenditures are constrained by external providers. Significant components of this balance include: o Mental Health Services Act - $3,075,132 o Realignment funding - $9,896,034 o Restricted to road maintenance and improvement - $779,640 o Community Corrections Performance Incentives - $1,553,828 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 14 o County Service Area No. 1 - $701,354 o AB443 Enhancing Law Enforcement Activities - $850,673 • Committed fund balance, $1,252,654, consists of amounts that have been committed to specific purposes by the Board of Supervisors and consists of amounts set aside for future capital related projects. This balance consists mostly of STPUD Mitigation funding which the Board of Supervisors by resolution has set aside for capital related improvements. • Assigned fund balance, $3,985,966, represents amounts intended for use as determined by the Board of Supervisors and also represents the residual balance in governmental funds other than the General Fund. Assigned fund balances primarily consists of $1,335,054 anticipated for funding next fiscal year’s General Fund shortfall in revenues, $1,000,000 set aside as a general reserve to provide funding in case of emergencies, $551,090 set aside for unfunded other postemployment liabilities, $334,986 intended to pay the County’s MOU with the Courts and also any future facility improvements to the Courthouse building and $107,702 set aside for capital replacement and on- going capital projects. • Unassigned fund balance, $1,423,700 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 61%, or $5,887,205, of the General Fund’s fund balance is available to meet the County’s current and future needs. With the approval of the Board of Supervisors, County management can earmark a portion of fund balance to a particular function, project or activity, and can also earmark it for purposes beyond the current year, within the constraints applied to the various categories of fund balance. With the exception of the nonspendable portion, fund balances are available for appropriation at any time. During the year, unassigned fund balance in the General Fund decreased by $1,394,819, or 45.2% 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 85% of total General Fund expenditures and spendable fund balance is approximately 61%. Both measures are less favorable when compared to the prior year (97% and 77%, respectively for the prior year). This generally is because total expenditures increased $689,684 over the prior year while total other financing sources/(uses) decreased $364,885, total fund balance decreased $487,256 and spendable fund balance decreased $987,756. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 15 Below is a chart showing General Fund surplus (deficit) for the past five years. Other Governmental Funds The Road Fund completed the year with a decrease in fund balance of $57,592. Needed maintenance projects that had been delayed were completed in the current year as increased revenues were received in the current year. The Mental Health Services Act fund experienced a decrease in fund balance of $333,728. This fund is funded with revenues generated from the passage of Proposition 63. The resources are used to support County mental health programs. Funding allocations received from the State decreased this year, so this fund’s activities returned to normal in the current year. The capital facility component included in the County’s MHSA three-year plan was set aside to finance a new MHSA Wellness Center, for which construction preparations began in the prior year and were completed in the current fiscal year. The Realignment Fund realized a decrease in fund balance of $1,684,358. Realignment revenues are used to pay for operational funding gaps in programs that include behavioral health, public health, social services and post release community supervision, net of the funding from other dedicated sources. The Social Services Fund experienced a decrease in fund balance of $96,613. Social Services revenues are used to support County social service programs. ($600,000) ($400,000) ($200,000) $0 $200,000 $400,000 $600,000 $800,000 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Surplus (Deficit) ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 16 The MHSA Capital Facility Fund experienced a decrease in fund balance of $87,729. This fund is being used to build the new MHSA Wellness Center, which was completed in the current fiscal year. Funding for this facility is coming from the MHSA Fund. As compared with the prior year, the total fund balances of the remaining governmental funds increased $1,295,213, or 18%. The increase is due to the public health fund, which increased $566,391, the Tobacco Fund, which increased $237,661, the Fire Protection Fund, which increased $228,410 and the cc perf incentives fund, which increased $172,778. 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 $432,235, or 1.9% from the original budget adopted in September 2019. Most of the increase resulted from increased intergovernmental revenues and transfers in. Total appropriations increased by $345,283, or 2.3%, and this increase was the result of an increase in General Contributions and Community Development. Actual revenues were less than the amount budgeted by $4,389,658, or 19.3%. This shortfall is due to $2,113,104 worth of transfers in not received, $1,671,065 worth of charges for services eliminated with expenditures for indirect costs and self insurance expenditures, $588,164 worth of intergovernmental revenues and a $230,066 shortfall in tax revenues. 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 $5,336,500, or 34.8% 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, the elimination of indirect costs and self insurance expenditures and $2,065,598 in General Fund contributions that were delayed or cancelled. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2020 totaled $22.1 million. Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads and bridges. The total net increase (including the effect of depreciation) in the County’s capital assets for the current fiscal year was $4,583,770, offset by a decrease in construction in progress and current year depreciation. Major capital asset additions during the current fiscal year included: • Vehicles and equipment - $578,588 • Structures and improvements - $4,509,908 • Infrastructure - $2,160,719 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2020 17 Debt Administration At the end of the current fiscal year, the County had total long-term liabilities outstanding of $30,717,266, an increase of $1,433,020 from the prior year. This increase is due to a $837,242 increase in Net Pension Liability and a $683,048 increase in Net OPEB Liability compared to the prior year. A comparison of each type of liability and its balance from last year to this year, along with a reason for the change is as follows: Additional information on the County’s long-term liabilities is in Note 5 to the basic financial statements. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Alpine County Finance Department at P.O. Box 266, Markleeville, California 96120. 2020 2019 Changes Capital leases payable $ 770,019 $ 851,157 $ (81,138) scheduled payment Net OPEB liability 15,702,077 15,019,029 683,048 pay-as-you go funded Net pension liability 12,366,712 11,529,473 837,239 contributions and other adjustments Compensated absences 678,763 624,167 54,596 net accrued absences Estimated Liability for claims costs 1,199,695 1,260,420 (60,725) decreased anticipated claims $ 30,717,266 $ 29,284,246 $ 1,433,020 ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Discrete Statement of Net Position Component Unit June 30, 2020 Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 28,255,231 $ 9,260 $ 28,264,491 $ 435,081 $ Accounts receivable 155,557 136 155,693 - Taxes receivable 465,902 - 465,902 - Due from other governments 1,561,112 42,243 1,603,355 72,343 Interest receivable 102,357 49 102,406 - Prepaid expense - - - - Deposits 2,224,148 - 2,224,148 - Inventories 166,674 - 166,674 - Interfund balances - - - - Capital assets: Nondepreciable 2,335,979 - 2,335,979 - Depreciable, net 19,721,440 28,986 19,750,426 - Total Assets 54,988,400 80,674 55,069,074 507,424 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 3,071,682 18,900 3,090,582 - OPEB adjustments 3,206,586 - 3,206,586 - Total Deferred Outflows of Resources 6,278,268 18,900 6,297,168 - LIABILITIES Accounts payable 978,209 4,278 982,487 50,511 Accrued salaries and benefits 83,329 247 83,576 - Accrued interest payable 2,406 - 2,406 - Due to other government 73,946 - 73,946 - Unearned revenue - 53,234 53,234 - Long-term liabilities: Due within one year: Compensated absences 339,382 - 339,382 - Capital leases 84,209 - 84,209 - Estimated liability for claims costs 1,199,695 - 1,199,695 - Due after one year: Compensated absences 339,381 - 339,381 - Capital leases 685,810 - 685,810 - Other post-employment benefits 15,702,077 - 15,702,077 - Net pension liability 12,292,829 73,883 12,366,712 - Total Liabilities 31,781,273 131,642 31,912,915 50,511 DEFERRED INFLOWS OF RESOURCES Pension adjustments 563,851 4,432 568,283 - OPEB adjustments 376,491 - 376,491 - Total Deferred Inflows of Resources 940,342 4,432 944,774 - NET POSITION Net investment in capital assets 21,287,400 28,986 21,316,386 - Restricted 23,456,990 - 23,456,990 456,913 Unrestricted (16,199,337) (65,486) (16,264,823) - Total Net Position 28,545,053 $ (36,500) $ 28,508,553 $ 456,913 $ See accompanying notes to the basic financial statements. 18 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2020 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: General government 4,373,292 $ 479,398 $ 24,781 $ - $ Public protection 6,390,641 632,419 2,066,437 - Public ways and facilities 2,571,802 - 3,694,873 - Health and sanitation 3,465,644 217,166 4,166,425 - Public assistance 2,077,841 37,212 1,436,562 - Education 384,812 859 20,123 - Recreation and culture 81,795 - - - Interest on long-term debt 30,904 - - - Total Governmental Activities 19,376,731 1,367,054 11,409,201 - Business-Type Activities Alpine Transit Service 101,711 4,013 74,029 - Total Primary Government 19,478,442 $ 1,371,067 $ 11,483,230 $ - $ Component Unit: Alpine County Children and and Families Commission 221,376 $ - $ 284,964 $ - $ GENERAL REVENUES AND TRANSFERS Taxes: Property taxes Sales and use taxes Transient occupancy taxes Other taxes Grants and other governmental revenues not restricted to specific programs Unrestricted investment earnings Gain/(Loss) on sale of assets Total General Revenues CHANGES IN NET POSITION Net Position, Beginning of Year NET POSITION, END OF YEAR See the accompanying notes to the basic financial statements. 19 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Discrete Primary Government Component Unit Alpine County Business- Children Governmental Type and Families Activities Activities Total Commission FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: (3,869,113) $ - $ (3,869,113) $ General government (3,691,785) - (3,691,785) Public protection 1,123,071 - 1,123,071 Public ways and facilities 917,947 - 917,947 Health and sanitation (604,067) - (604,067) Public assistance (363,830) - (363,830) Education (81,795) - (81,795) Recreation and culture (30,904) - (30,904) Interest on long-term debt (6,600,476) - (6,600,476) Total Governmental Activities Business-Type Activities - (23,669) (23,669) Alpine Transit Service (6,600,476) (23,669) (6,624,145) Total Primary Government Component Unit: Alpine County Children and 63,588 $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 5,610,788 - 5,610,788 - Property taxes 186,650 - 186,650 - Sales and use taxes 662,795 - 662,795 - Transient occupancy taxes 61,043 - 61,043 - Other taxes Grants and other governmental revenues 260,666 - 260,666 - not restricted to specific programs 688,079 290 688,369 5,105 Unrestricted investment earnings (16,144) - (16,144) - Gain/(Loss) on sale of assets 7,453,877 290 7,454,167 5,105 Total General Revenues 853,401 (23,379) 830,022 68,693 CHANGES IN NET POSITION 27,691,652 (13,121) 27,678,531 388,220 Net Position, Beginning of Year 28,545,053 $ (36,500) $ 28,508,553 $ 456,913 $ NET POSITION, END OF YEAR ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2020 Mental General Road Health Realignment Fund Fund Services Act Fund ASSETS Cash and investments 5,674,906 $ 1,217,780 $ 2,969,886 $ 9,758,692 $ Accounts receivable 4,161 464 - 89,202 Taxes receivable 445,033 - - - Due from other governments 208,274 248,474 124,498 290,337 Interest receivable 21,761 4,326 10,545 34,006 Prepaid expenses - - - - Deposits 2,224,148 - - - Inventories - 166,674 - - Due from other funds 433,708 - - - Advance to other funds 60,000 - - - Total Assets 9,071,991 $ 1,637,718 $ 3,104,929 $ 10,172,237 $ LIABILITIES Accounts payable 214,334 $ 419,341 $ 26,746 $ 4 $ Accrued salaries and benefits 68,612 2,707 3,051 522 Due to other government 73,946 - - - Due to other funds - 42,544 - 273,909 Advance from other funds - 30,000 - - Unearned revenues - - - - Total Liabilities 356,892 494,592 29,797 274,435 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 543,746 196,812 - 1,768 FUND BALANCES Nonspendable 2,284,148 166,674 - - Restricted 418,507 779,640 3,075,132 9,896,034 Committed - - - - Assigned 3,780,191 - - - Unassigned 1,688,507 - - - Total Fund Balances 8,171,353 946,314 3,075,132 9,896,034 Total Liabilities, Deferred Inflows of Resources and Fund Balances 9,071,991 $ 1,637,718 $ 3,104,929 $ 10,172,237 $ See the accompany notes to the basic financial statements. 20 ---PAGE BREAK--- MHSA Social Capital Other Services Facility Governmental Total ASSETS 1,876 $ 86,072 $ 8,546,019 $ 28,255,231 $ Cash and investments 1,656 - 60,074 155,557 Accounts receivable - - 20,869 465,902 Taxes receivable 23,534 - 665,995 1,561,112 Due from other governments - 1,581 30,138 102,357 Interest receivable - - - - Prepaid expenses - - - 2,224,148 Deposits - - - 166,674 Inventories 126,708 - 296,896 857,312 Due from other funds - - 2,800 62,800 Advance to other funds 153,774 $ 87,653 $ 9,622,791 $ 33,851,093 $ Total Assets LIABILITIES 63,803 $ 16,304 $ 237,677 $ 978,209 $ Accounts payable 2,962 - 5,475 83,329 Accrued salaries and benefits - - - 73,946 Due to other government 151,217 - 389,642 857,312 Due to other funds - - 32,800 62,800 Advance from other funds - - - - Unearned revenues 217,982 16,304 665,594 2,055,596 Total Liabilities DEFERRED INFLOWS OF RESOURCES 23,534 - 467,271 1,233,131 Unavailable revenues FUND BALANCES - - 476,491 2,927,313 Nonspendable - 71,349 6,732,071 20,972,733 Restricted - - 1,252,654 1,252,654 Committed - - 205,775 3,985,966 Assigned (87,742) - (177,065) 1,423,700 Unassigned (87,742) 71,349 8,489,926 30,562,366 Total Fund Balances Total Liabilities, Deferred Inflows 153,774 $ 87,653 $ 9,622,791 $ 33,851,093 $ of Resources and Fund Balances ---PAGE BREAK--- COUNTY OF ALPINE Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds June 30, 2020 Fund balance - total governmental funds 30,562,366 $ 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 72,222,479 $ Less: accumulated depreciation (50,165,060) 22,057,419 Revenues that are not available and, therefore, do not meet the modified accrual criteria are deferred in the governmental funds but are recorded in the statement of activities 1,233,129 Deferred outflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 6,278,268 Deferred inflows of resources in governmental activities does not require the use of financial resources and, therefore, are not reported in the governmental funds (940,342) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Estimated liability for claims costs (1,199,695) Capital leases (770,019) Compensated absences (678,763) Other post-employment benefits (15,702,077) Net pension liability (12,292,829) Accrued interest payable (2,406) Net position of governmental activities 28,545,051 $ See the accompanying notes to the basic financial statements. 21 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2020 Mental General Road Health Realignment Fund Fund Services Act Fund REVENUES Taxes 6,118,934 $ - $ - $ - $ Licenses and permits 27,721 550 - - Fines, forfeitures and penalties 188,299 1,237 - - Use of money and property 171,470 26,742 74,944 223,285 Intergovernmental 983,462 3,194,989 1,234,318 2,365,524 Charges for services 702,324 294,789 - - Other revenues 208,256 3,109 - - Total Revenues 8,400,466 3,521,416 1,309,262 2,588,809 EXPENDITURES Current: General government 2,748,475 - - - Public protection 5,163,876 - - 141,673 Public ways and facilities 81,403 1,357,991 - - Health and sanitation 218,823 - 1,298,687 - Public assistance 675,735 - - - Education 396,908 - - - Recreation and cultural services 38,073 - - - Capital outlay 330,213 2,760,426 54,303 142,371 Debt service: Principal - - - - Interest and issuance cost - - - - Total Expenditures 9,653,506 4,118,417 1,352,990 284,044 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,253,040) (597,001) (43,728) 2,304,765 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets 286 15,850 - - Transfers in 1,101,783 1,258 - - Transfers out (336,285) (74,700) (290,000) (3,989,123) Total Other Financing Sources and (Uses) 765,784 (57,592) (290,000) (3,989,123) NET CHANGES IN FUND BALANCES (487,256) (654,593) (333,728) (1,684,358) Fund Balances, Beginning of Year 8,658,609 1,600,907 3,408,860 11,580,392 FUND BALANCES, END OF YEAR 8,171,353 $ 946,314 $ 3,075,132 $ 9,896,034 $ See the accompanying notes to the basic financial statements. 22 ---PAGE BREAK--- MHSA Social Capital Other Services Facility Governmental Total REVENUES - $ - $ 346,822 $ 6,465,756 $ Taxes - - 55,031 83,302 Licenses and permits - - 821 190,357 Fines, forfeitures and penalties 2,654 21,288 227,567 747,950 Use of money and property 503,177 - 3,491,260 11,772,730 Intergovernmental - - 557,782 1,554,895 Charges for services 5,763 - 93,617 310,745 Other revenues 511,594 21,288 4,772,900 21,125,735 Total Revenues EXPENDITURES Current: - - 54,599 2,803,074 General government - - 644,452 5,950,001 Public protection - - 465,544 1,904,938 Public ways and facilities - - 2,089,495 3,607,005 Health and sanitation 1,349,034 - - 2,024,769 Public assistance - - - 396,908 Education - - - 38,073 Recreation and cultural services - 2,919,396 151,139 6,357,848 Capital outlay Debt service: - - 81,138 81,138 Principal - - 31,158 31,158 Interest and issuance cost 1,349,034 2,919,396 3,517,525 23,194,912 Total Expenditures Excess (Deficiency) of Revenues Over (837,440) (2,898,108) 1,255,375 (2,069,177) (Under) Expenditures OTHER FINANCING SOURCES (USES) 3,977 - - 20,113 Gain/(loss) on sale of capital assets 738,467 2,810,379 1,185,655 5,837,542 Transfers in (1,617) - (1,145,817) (5,837,542) Transfers out 740,827 2,810,379 39,838 20,113 Total Other Financing Sources and (Uses) (96,613) (87,729) 1,295,213 (2,049,064) NET CHANGES IN FUND BALANCES 8,871 159,078 7,194,713 32,611,430 Fund Balances, Beginning of Year (87,742) $ 71,349 $ 8,489,926 $ 30,562,366 $ FUND BALANCES, END OF YEAR ---PAGE BREAK--- COUNTY OF ALPINE Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended June 30, 2020 Net change to fund balance - total governmental funds (2,049,064) $ 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 5,639,892 Less: current year depreciation (1,041,387) 4,598,505 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 187,760 OPEB contributions made subsequent to the measurement date is an expenditure in the governmental funds, but reported as a deferred outflow of resources in the government- wide financial statements 8,444 Unavailable revenues are reported as deferred inflows of resources in the governmental funds, but are recognized as revenues in the statement of activities (96,005) 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 81,138 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 254 Change in compensated absences (54,596) Change in estimated liability for claims costs 60,725 6,383 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 (1,144,636) Changes to net OPEB liability and OPEB related deferred outflows or inflows of resources do not provide or require the use of current financial resources and therefore are not reported as expenditures in governmental funds (739,124) Change in net position of governmental activities 853,401 $ Amounts reported for governmental activities in the statement of activities are different because: See the accompanying notes to the basic financial statements. 23 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Net Position Proprietary Funds - Alpine Transit Service June 30, 2020 ASSETS Current Assets: Cash and investments 9,260 $ Accounts receivable 136 Due from other governments 42,243 Interest receivable 49 Total Current Assets 51,688 Non-Current Assets: Equipment, net of accumulated depreciation 28,986 Total Assets 80,674 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 18,900 18,900 LIABILITIES Current Liabilities: Accounts payable 4,278 Accrued salaries and benefits 247 Unearned revenue 53,234 Total Current Liabilities 57,759 Noncurrent Liabilities: Net pension liability 73,883 Total Liabilities 131,642 DEFERRED INFLOWS OF RESOURCES Pension adjustments 4,432 4,432 NET POSITION Net investment in capital assets 28,986 Unrestricted (65,486) Total Net Position (36,500) $ See the accompanying notes to the basic financial statements. 24 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2020 OPERATING REVENUES Passenger fares 4,013 $ OPERATING EXPENSES Salaries and benefits 61,087 Adminstrative 16,839 Fuel and vehicle maintenance 8,069 Insurance 981 Depreciation 14,735 Total Operating Expenses 101,711 OPERATING INCOME (LOSS) (97,698) NON-OPERATING REVENUES (EXPENSES) Federal Transit Administration operating grant (5,757) Local Transportation Fund allocation 79,786 Interest 290 Total Non-Operating Revenues (Expenses) 74,319 CHANGE IN NET POSITION (23,379) Net Position, Beginning of Year (13,121) NET POSITION, END OF YEAR (36,500) $ See the accompanying notes to the basic financial statements. 25 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Cash Flows Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2020 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 3,975 $ Cash paid to employees (59,593) Cash paid to suppliers for goods and services (21,647) Net Cash Used by Operating Activities (77,265) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments 533 Net Cash Provided by Investment Activities 533 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 40,000 Net Cash Provided by Noncapital Financing Activities 40,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contribution Acquisition of capital assets - Net Cash Used in Capital and Related Financing Activities - NET INCREASE IN CASH AND CASH EQUIVALENTS (36,732) Cash and Cash Equivalents, Beginning of Year 45,992 CASH AND CASH EQUIVALENTS, END OF YEAR 9,260 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (97,698) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 14,735 Changes in assets and liabilities: Accounts receivable (38) Deferred outflows 2,321 Accounts payable 4,242 Accrued salaries and benefits (831) Deferred inflows (425) Net pension liability 429 NET CASH USED BY OPERATING ACTIVITIES (77,265) $ See the accompanying notes to the basic financial statements. 26 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2020 Investment Trust Agency Fund Funds ASSETS Cash and investments 8,768,442 $ 243,573 $ Accounts receivable 211,721 326,100 Interest receivable 32,963 - Total Assets 9,013,126 569,673 LIABILITIES Apportionments payable - - Accounts payable 31,985 385,939 Agency obligations - 183,734 Total Liabilities 31,985 569,673 NET POSITION Net position held in trust for investment pool participants 8,981,141 - Total Net Position 8,981,141 $ - $ See the accompanying notes to the basic financial statements. 27 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2020 Investment Trust Fund ADDITIONS Contributions to investment pool 4,865,043 $ Investment earnings 207,109 Total Additions 5,072,152 DEDUCTIONS Distributions from pooled investment accounts 5,665,119 Total Deductions 5,665,119 CHANGE IN NET POSITION (592,967) Net Position, Beginning of Year 9,574,108 NET POSITION, END OF YEAR 8,981,141 $ See the accompanying notes to the basic financial statements. 28 ---PAGE BREAK--- 29 NOTES TO FINANCIAL STATEMENTS The notes provided in the financial section of this report are considered an integral and essential part of adequate disclosure and fair presentation of this report. The notes include a summary of significant accounting policies for the County, and other necessary disclosures of pertinent matters related to the financial position of the County. The notes express significant insight to the financial statements and are conjunctive to understanding the rationale for presentation of the financial statements and information contained in this document. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 30 Note 1: Summary of Significant Accounting Policies The accounting methods adopted by the County conform to accounting principles generally accepted in the United States of America as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the County’s accounting policies are described below. A. Description of the Reporting Entity The County is a legal subdivision of the State of California whereby it can exercise the powers specified by the constitution and statutes of the State of California. The County operates under an Administrator-Board of Supervisors form of government with legislative and executive control held by an elected five member Board of Supervisors. Major services provided by the County to its citizens include: public protection, public ways and facilities, health and sanitation, public assistance, education, culture and recreation and general government services. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable under the criteria set by Governmental Accounting Standards Board (GASB) Statement No. 61, “Financial Reporting Entity: Omnibus”. Reporting for component units on the County’s financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Blended component units are an extension of the County and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the basic financial statements to emphasize they are legally separate from the County. Each component unit has a June 30th year-end. Blended Component Units. The County Service Area #1 and Alpine County Local Transportation Commission are districts governed by the County Board of Supervisors. The component unit’s governing body is substantially the same as the primary government; hence, these units are presented by blending them with the primary government. Financial statements for the Alpine County Local Transportation Commission can be obtained at P.O. Box 266, Markleeville, CA 96120. Discretely Presented Component Units. The nine members of the Alpine County Children and Families Commission are appointed by the Alpine County Board of Supervisors and may be removed at any time without cause. Because the County Board of Supervisors can impose their will on the Commission, the Commission is considered a component unit of the County. The Commission is discretely presented because the two boards are not substantially the same and their operations are separate. Separately issued financial statements may be obtained by contacting the Commission at 100 Foothill Road, Suite D-3, Markleeville, CA 96120. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 31 B. Basis of Presentation Government-Wide Financial Statements The statement of net position and statement of activities display information about the primary government (the County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties. The statement of activities presents a comparison between program expenses and program revenues for each segment of the business-type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements The fund financial statements provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. Proprietary fund operating revenues include charges for the goods or services provided by the fund as part of its principal activity and result from exchange transactions. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include the costs of providing services and delivering goods. All other expenses not meeting this definition are reported as nonoperating expenses. The County reports the following major governmental funds: • The General Fund is the County’s primary operating fund and is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. For the County, the General Fund includes such activities as public protection, public ways and facilities, health and sanitation, public assistance, education, recreation services and general government services. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 32 • The Road Fund was established to provide for maintenance and construction of roadways. Revenues consist primarily of the County’s share of state highway use tax and are supplemented by federal and state funds. • The Mental Health Services Act Fund was established to account for Proposition 63 passed in 2004 to expand and further develop mental health services in the County. • The Realignment Fund was established to account for State realigned revenues generated from sales taxes and vehicle license fees that are restricted to expenditure for specific social, health, mental health and public safety programs. • The Social Services Fund was established to account for social services programs in the County. • The MHSA Capital Facility Fund was established to account for the MHSA Wellness Center capital project. The County reports its only enterprise fund described below as a major fund: • The Alpine Transit Service Fund provides public transit services in the County. The County reports the following fiduciary fund types: • The Investment Trust Fund accounts for the assets of legally separate entities, which invest in the County Treasurer’s investment pool. These entities include one school district and several special districts governed by local boards. These funds represent the assets, primarily cash and investments, and the related liability of the County to disburse these monies on demand. • The Agency Funds account for assets held by the County as an agent for various individuals or other local governments. These funds are custodial in nature and do not involve measurement of results or operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. C. Basis of Accounting The government-wide, proprietary and investment trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 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, 2020, to support the value of pool shares. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 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, 2020, 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, 2020 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, 2020, the County had deferred outflows of resources related to pensions and OPEB. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County had deferred inflows of resources consisting of unavailable revenues reported under the modified accrual basis of accounting in the governmental funds balance sheet and related to pensions and OPEB in its proprietary and government-wide statements. The governmental funds report unavailable revenues from property taxes, intergovernmental, and other sources as appropriate. The amounts are deferred and recognized as revenues in the period the amounts become available. K. Pensions In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The County recognizes a net pension liability for each qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as of the County’s fiscal year-end or the County’s proportionate share thereof in the case of a cost-sharing multiple-employer plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 36 Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. L. Postemployment Benefits Other than Pensions (OPEB) In government-wide financial statements and proprietary fund financial statements, retirement OPEB plans are required to be recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension OPEB expenditures on the governmental fund statements, which use the modified accrual basis of accounting. In general, the County recognizes a net OPEB liability, which represents the County’s proportionate share of the excess of the total OPEB liability over the fiduciary net position of the OPEB Plan reflected in the actuarial report provided by Nyhart. The net OPEB liability is measured as of the County’s prior fiscal year- end. Changes in the net OPEB liability are recorded, in the period incurred, as OPEB expenses or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in net OPEB liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the OPEB plan and are recorded as a component of OPEB expense beginning with the period in which they are incurred. For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the County’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. M. Property Tax Revenue Property taxes, including tax rates, are regulated by the State and are administered locally by the County. The County is responsible for assessing, collecting and distributing property taxes in accordance with state law. Property taxes attach as an enforceable lien at January 1. Taxes are levied on July 1 and are payable in two installments, December 10 and April 10. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 37 All general property taxes are allocated to the various taxing entities per the legislation implementing Article XIII of the California Constitution (commonly referred to as Proposition 13). General property taxes are based either on a flat one percent rate applied to the 1975/1976 full value of the property or on one percent of the sales price of the property on sales transactions and construction after the 1975/1976 valuation. Taxable values on properties (exclusive of increases related to sales and construction) can rise at a maximum rate of two percent per year. The method of allocation used by the County is subject to review by the State of California. The County recognizes property tax revenues in the period for which the taxes are levied. N. Interfund Transactions Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” the current portion of interfund loans) or “advances to/from other funds” the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance amount in the applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or business-type activities are netted as part of the reconciliation to the government-wide presentation. O. Net Position The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: • Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. • Restricted Net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted Net position – This category represents net position of the County, not restricted for any project or other purpose. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 38 When both restricted and unrestricted net position is available, the County considers restricted net position to have been depleted before unrestricted net position is applied. P. Fund Balance In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent. • Nonspendable fund balance – Amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to remain intact. • Restricted fund balance – Amounts with constraints placed on their use that are externally imposed by creditors, grantors, contributors, or laws and regulations of other governments. Constraints may also be imposed by law through constitutional provisions or enabling legislation. • Committed fund balance – Amounts that can only be used for specific purposes determined by formal action of the County’s highest level of decision-making authority (the Board of Supervisors) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. • Assigned fund balance – Amounts that are constrained by the County’s intent to use resources for specific purposes. The intent can be established at either the highest level of decision-making or by a body or an official designated for that purpose. This is also the classification for residual fund balance in all governmental funds other than the General Fund. • Unassigned fund balance – The residual classification for the County’s General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if the expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned to those purposes deficit fund balance). The Board of Supervisors establishes, modifies or rescinds fund balance commitments and assignments by passage of an ordinance or resolution and through adoption of the budget and subsequent budget amendments that occur throughout the year. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, followed by committed, assigned and unassigned resources as they are needed. Q. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 39 Note 2: Cash and Investments At June 30, 2020, total County cash and investments were as follows: Total cash and investments at June 30, 2020 were presented on the County’s financial statements as follows: The investment pool includes both voluntary and involuntary participation from external entities. The State of California statutes require certain districts and other governmental entities to maintain their cash surplus with the County Treasurer. Investments The County’s cash and investments are invested by the County Treasurer. The Treasury Oversight Committee has oversight for all monies deposited into the Treasury Pool. Such amounts are invested in accordance with investment policy guidelines established by the County Treasurer and reviewed and approved by the Board of Supervisors. The objectives of the policy are, in order of priority, safety of principal, liquidity and yield. The policy addresses the soundness of financial institutions in which the County will deposit funds, types of investment instruments as permitted by California Government Code and the percentage of the portfolio that may be invested in certain instruments. Cash: Cash on hand $ 531 Imprest accounts 380 Outstanding warrants (1,128,833) Deposits 1,019,588 Total Cash (108,334) Investments: In Treasurer's Pool 37,384,840 Total Cash and investments $ 37,276,506 Primary government $ 28,264,491 Investment trust fund 8,768,442 Agency funds $ 243,573 Total Cash and investments 37,276,506 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 40 The table below identifies the investment types that are authorized for the County by the California Government Code or the County’s investment policy, where more restrictive. The table also identifies certain provisions of the County’s investment policy that address interest rate risk, credit risk and concentration risk. At June 30, 2020, the County had the following investments: A copy of the County investment policy is available upon request from the Alpine County Finance Department at P.O. Box 266, Markleeville CA 96120 or by calling (530) 694-2284. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio in One Issuer Local Agency Bonds 1 Year 5% None U.S. Treasury Obligations 5 Years None None U.S. Agency Obligations 5 Years None None Collateralized Bank Deposits 1 Year 10% None Money Market Mutual Funds N/A 15% 10% Local Agency Investment Fund (LAIF) N/A None None Weighted Fair Average Maturity Investment Rates Maturities Cost Par Value (Days) Investments in Investment Pool: U.S. Treasuries 1.250% - 2.625% 8/31/20 - 11/30/24 $ 3,258,040 $ 3,268,751 $ 3,358,923 722.7 Federal Agency Obligations 0.3750% - 2.875% 7/30/20 - 3/8/24 3,736,467 3,742,305 3,846,271 624.15 Money Market Mutual Funds Variable On Demand 15,295 15,295 15,295 0 LAIF Variable On Demand 30,164,351 30,164,351 30,164,351 0 $ 37,174,153 $ 37,190,702 $ 37,384,840 129.15 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 41 Fair Value Measurements The Pool categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered hierarchy, as follows: • Level 1: Investments reflect prices quoted in active markets; • Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and, • Level 3: Investments reflect prices based upon unobservable sources Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The general rule is the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The County manages its exposure to declines in fair value by purchasing a combination of shorter term and longer term investments and by timing maturities to provide the necessary cash flow and liquidity needed for operations. The County monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity (WAM) of its portfolio. At June 30, 2020, the County’s portfolio WAM associated with the investment pool was 129.15 days. Credit Risk – Generally, custodial credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the County’s policy to purchase investments meeting ratings requirements established by the California Government Code. Concentration of Credit Risk – State law limits investments in money market mutual funds, collateralized bank deposits and local agency bonds to no more than 15%, 10% and respectively, of the investment pool at the time of purchase. State law also limits investments in any one money market mutual fund to no more than 10% of the investment pool at the time of purchase. The County’s investment policy adheres to these limitations established by California Government Code. Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Fair Assets Inputs Inputs Investments By Fair Value Level Value (Level 1) (Level 2) (Level 3) Federal Agency Obligations $ 3,846,271 $ 3,846,271 $ - $ - U.S. Treasuries 3,358,923 3,358,923 - - Money Market Mutual Funds 15,295 15,295 - - Total Investments Measured at Fair Value 7,220,489 $ 7,220,489 $ - $ - Unclassified Investments: Local Agency Investment Fund 30,164,351 Total Investments $ 37,384,840 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 42 The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the County’s Investment Pool’s fair value at June 30, 2020. 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, 2020, the County’s investment position in LAIF was $30,164,351. 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 $101.0 billion. Of that amount, 2.21% was invested in structured notes and asset-backed securities with the remaining 97.79% invested in other non-derivative financial products. The average maturity of PMIA investments was 191 days as of June 30, 2020. LAIF operates and reports to participants on an amortized cost basis. The income, gains, and losses, net of administrative fees, are allocated based upon the participant’s average daily balance. Deposits in LAIF are not insured or otherwise guaranteed by the State of California and participants share proportionately in any realized gains or losses on investments. The fair value of LAIF is approximately equal to the value of pool shares. Withdrawals from LAIF are done on a dollar to dollar basis. Credit Rating % Investment in Pool Moody's/S&P/Finch Holdings Federal Agency Obligations Aaa/AA+/AAA 11.19% U.S. Treasuries Aaa/AA+/AAA 6.20% Money Market Mutual Funds Aaa/AAA/AAA 0.01% LAIF Not Rated 82.60% 100.00% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 43 County Investment Pool The County’s Investment Pool includes amounts held for its one school district whose participation in the Treasury Pool is mandated by State code. At June 30, 2020, involuntary participants of the County’s investment pool totaled $8,687,709. 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, 2020: Statement of Net Position Net position held for pool participants $ 37,276,506 Equity of External pool participants $ 8,768,442 Equity of Internal pool participants 28,508,064 Total Net Position $ 37,276,506 Statement of Changes in Net Position Investment earnings $ 905,967 Investment expenses (10,651) Net withdrawls by pool participants (4,089,225) Increase in Net Position $ (3,193,909) Net Position at July 1, 2019 40,470,415 Net Position at June 30, 2020 $ 37,276,506 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 44 Note 3: Interfund Transactions Interfund Receivables and Payables Interfund receivables and payables result from the time lag between the dates that transactions are recorded in the accounting system and the date payments between funds are made. Interfund receivables and payables also result from short-term loans to participants in the County’s Investment Pool whose investment accounts are deficit. The composition of interfund balances classified as due to/from other funds as of June 30, 2020 is as follows: Receivable Fund Payable Fund Amount General Fund Road Fund $ 42,544 Social Services 151,217 Other Governmental Funds 239,947 433,708 Social Services Realignment 126,708 126,708 Other Governmental Funds Realignment Fund 147,201 Other Governmental Funds 149,695 296,896 $ 857,312 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 45 Transfers Transfers are indicative of funding for capital projects, lease payments for debt service, subsidies of various County operations and re-allocations of special revenues. The following schedules summarize the County’s transfer activity during the fiscal year ended June 30, 2020: Transfers between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Road Fund $ 1,258 Non-major Governmental Funds 335,027 336,285 Road Fund General Fund 74,700 Mental Health Services Act MHSA Capital Facility 290,000 Realignment Fund General Fund 101,400 Social Services 726,066 MHSA Capital Facility 2,520,379 Non-major Governmental Funds 641,278 3,989,123 Social Services Non-major Governmental Funds 1,617 Other Governmental Funds General Fund 925,683 Social Services 12,401 Non-major Governmental Funds 207,733 1,145,817 $ 5,837,542 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 46 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2020 was as follows: Balance Transfers & Balance July 1, 2019 Additions Retirements Adjustments June 30, 2020 Governmental Activities: Total capital assets, not being depreciated Land $ 1,220,599 $ - $ - $ - $ 1,220,599 Construction in progress 2,713,734 5,332,857 (6,931,211) - 1,115,380 Total capital assets, not being depreciated 3,934,333 5,332,857 (6,931,211) - 2,335,979 Total capital assets, being depreciated Structures and improvements 15,501,802 4,509,908 - - 20,011,710 Equipment 12,343,387 578,588 (83,601) - 12,838,374 Infrastructure 34,875,697 2,160,719 - - 37,036,416 Total capital assets, being depreciated 62,720,886 7,249,215 (83,601) - 69,886,500 Less accumulated depreciation for: Structures and improvements (5,940,727) (499,190) - - (6,439,917) Equipment (9,443,709) (504,050) 72,097 - (9,875,662) Infrastructure (33,811,869) (37,612) - - (33,849,481) Total accumulated depreciation (49,196,305) (1,040,852) 72,097 - (50,165,060) Total capital assets, being depreciated, net 13,524,581 6,208,363 (11,504) - 19,721,440 Governmental activities capital assets, net $ 17,458,914 $ 11,541,220 $ (6,942,715) $ - $ 22,057,419 Business-Type Activities: Total capital assets, being depreciated Structures and improvements $ 11,657 $ - $ - $ - $ 11,657 Equipment 143,959 - - - 143,959 Total capital assets, being depreciated 155,616 - - - 155,616 Less accumulated depreciation for: Structures and improvements (436) (290) - - (726) Equipment (111,459) (14,445) - - (125,904) Total accumulated depreciation (111,895) (14,735) - - (126,630) Business-Type activities capital assets, net $ 43,721 $ (14,735) $ - $ - $ 28,986 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 47 Depreciation expense was charged to governmental functions as follows: Depreciation expense was charged to the business-type activities as follows: Note 5: Long-Term Liabilities The following is a summary of long-term liabilities activity for the fiscal year ended June 30, 2020: 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 $ 260,945 Public protection 482,498 Public ways and facilities 129,955 Health and sanitation 32,897 Public assistance 87,183 Education 2,621 Recreation and cultural services 44,753 Total depreciation expense governmental activities $ 1,040,852 Alpine Transit Service $ 14,735 Balance Balance Amounts Due July 1, 2019 Additions Retirements June 30, 2020 Within One Year Governmental Activities: Capital leases payable $ 851,157 $ - $ (81,138) $ 770,019 $ 84,209 Net pension liability 11,456,016 2,229,366 (1,392,553) 12,292,829 - Other postemployment benefits 15,019,029 1,220,303 (537,255) 15,702,077 - Compensated absences 624,167 366,680 (312,084) 678,763 339,382 Estimated Liability for claims costs 1,260,420 57,006 (117,731) 1,199,695 1,199,695 $ 29,210,789 $ 3,873,355 $ (2,440,761) $ 30,643,383 $ 1,623,286 Business-type Activities: Net pension liability $ 73,454 $ 13,505 $ (13,076) $ 73,883 $ - $ 73,454 $ 13,505 $ (13,076) $ 73,883 $ - ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 48 Note 6: Capital Lease In March 2013, the County entered into a lease/purchase agreement with Capital One Public Funding, LLC, to finance $1,300,000 of the Alpine County Government Center Project (the “Project”). The Project serves as collateral for the outstanding balance of the direct borrowing. The direct borrowing contains a provision that if an event of default occurs and continues, then whatever action at law or remedies in the lease/purchase agreement may appear necessary or desirable to collect the amounts then due and thereafter become due is allowable, except there is no right under any circumstances to accelerate delinquent or future payments. The following is a summary of the County’s capital lease agreement as of June 30, 2020: Included in the governmental activities are the following capital asset amounts under capital leases: As of June 30, 2020, future minimum lease payments under capital leases were as follows: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2020 Alpine County Government Center 3.75% $ 770,019 Accumulated Cost Depreciation Book Value Administration building $ 200,760 $ 27,676 $ 173,084 Community development building 943,884 153,552 790,332 Sheriff secure storage facility 155,356 25,274 130,082 $ 1,300,000 $ 206,502 $ 1,093,498 Year Ending June 30: 2021 $ 112,296 2022 112,296 2023 112,296 2024 112,296 2025 112,296 2026-2028 336,887 Total Future Minimum Lease Payments 898,367 Less: Interest (128,348) Present Value of Minimum Lease Payments $ 770,019 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 49 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2020 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 MHSA General Road Health Realignment Social Capital Other Fund Fund Services Act Fund Services Facility Governmental Total Nonspendable: Permanent funds $ - $ - $ - $ - $ - $ - $ 473,691 $ 473,691 Deposits 2,224,148 - - - - - - 2,224,148 Prepaid expenses - - - - - - - - Inventories - 166,674 - - - - - 166,674 Advances 60,000 - - - - 2,800 62,800 Total Nonspendable 2,284,148 166,674 - - - - 476,491 2,927,313 Restricted: General government - - - - - - 40,888 40,888 Public protection - - - 1,307,865 - - 3,666,565 4,974,430 Public ways and facilities - 779,640 - - - - 366,003 1,145,643 Health and sanitation - - 3,075,132 1,801,555 - - 1,751,575 6,628,262 Public assistance - - - 6,786,614 - - - 6,786,614 Capital projects - - - - - 71,349 74,437 145,786 CSA - - - - - - 701,354 701,354 Other 418,507 - - - - - 131,249 549,756 Total Restricted 418,507 779,640 3,075,132 9,896,034 - 71,349 6,732,071 20,972,733 Committed: Capital projects - - - - - - 1,252,654 1,252,654 Total Committed - - - - - - 1,252,654 1,252,654 Assigned: Critical services - - - - - - - - Sheriff 283,177 - - - - - - 283,177 Capital projects 107,702 - - - - - 145,526 253,228 Courthouse 334,986 - - - - - - 334,986 Post-employment benefits 551,090 - - - - - - 551,090 Information Technology services 131,155 - - - - - - 131,155 Eliminate projected 2015-16 budgetary deficit - - - - - - - - Other 2,372,081 - - - - - 60,249 2,432,330 Total Assigned 3,780,191 - - - - - 205,775 3,985,966 Unassigned 1,688,507 - - - (87,742) - (177,065) 1,423,700 Total Fund Balances $ 8,171,353 $ 946,314 $ 3,075,132 $ 9,896,034 $ (87,742) $ 71,349 $ 8,489,926 $ 30,562,366 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 50 Net position from governmental activities as of June 30, 2020, was restricted for the following purposes: Deficit fund balances / net position as of June 30, 2020, were as follows: Fund deficits result from the deferral of revenues collected more than sixty days after the end of the fiscal year. The collection of receivables in the next fiscal year is expected to eliminate the deficit balances. Note 8: County Employees Retirement Plan (Defined Benefit Pension Plan) General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees of Alpine County and Alpine County Superior Court are eligible to participate in the Country’s separate Safety (Sheriff) and Miscellaneous (all others) cost sharing multiple employer defined benefit pension plans, Employee Pension Plans, administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating member employers. Benefit provisions under the Plans are established by State statute and County resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Capital projects $ 444,674 General government 1,291,552 Public protection 6,142,722 Public ways and facilities 1,546,111 Health and sanitation 5,986,489 Public assistance 6,810,148 County Service Area #1 755,681 Other: Trust for Public Land - nonexpendable 479,613 $ 23,456,990 Governmental Funds: Social Services 87,742 Environmental Health 27,806 District Attorney Victim Witness Grant 32,785 COPS Grant 792 Bear Valley Solid Waste 46,924 Alpine County Transportation Commission 65,958 Enterprise Fund: Alpine Transit Services 36,500 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 51 Effective January 1, 2013, the County added retirement tiers for the Miscellaneous Plan and Safety Plan for new employees as required under the Public Employee Pension Reform Act (PEPRA). New employees hired on or after January 1, 2013 will be subject to new, lower pension formulas, caps on pensionable income levels and new definitions of pensionable income. In addition, new employees will be required to contribute half of the total normal cost of the pension benefit unless impaired by an existing Memorandum of Understanding. The cumulative effect of these PEPRA changes will ultimately reduce the County’s retirement costs. Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2020 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% 7.250% 9.000% 12.750% Required employer contribution rates 10.868% 7.072% 23.654% 13.786% Employer required annual lump sum prepayment of Unfunded Actuarial Liability (UAL) $639,668 $6,144 $347,957 $2,160 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, 2020 52 For the year ended June 30, 2020, 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, 2020, 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, 2019, 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. 2018. The County’s proportion of the net pension liability was based on a projection of the County’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The County’s proportionate share of the net pension liability for each Plan as of measurement date June 30, 2018 and 2019 was as follows: Miscellaneous Miscellaneous Safety Safety 1st Tier PEPRA 1st Tier PEPRA Contributions - employer $ 727,665 $ 141,306 $ 479,582 $ 44,208 Proportionate Share of Net Pension Liability Miscellaneous $ 7,965,137 Safety 4,401,575 $ 12,366,712 Miscellaneous Safety Pool Pool Proportion - June 30, 2018 MD 0.19600% 0.07060% Proportion - June 30, 2019 MD 0.19890% 0.07051% Change - Increase (Decrease) 0.00290% -0.00009% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 53 For the year ended June 30, 2020, the County recognized pension expense of $2,548,762. At June 30, 2020, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Of the total reported as deferred outflows of resources, $1,589,560 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, 2021. 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 $ 1,589,560 $ - Net differences between expected and actual experience 828,156 (30,423) Changes of assumptions 560,228 (169,848) Net differences between projected and actual earnings on plan investments (199,806) Adjustments due to differences in proportions 112,638 Differences between the employer's contributions and the employer's proportionate share of contributions (168,206) $ 3,090,582 $ (568,283) Year Ended June 30 2021 $ 880,169 2022 (102,105) 2023 114,753 2024 39,922 2025 - Thereafter - 932,739 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 54 Actuarial Assumptions The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions for all Plans: The mortality table used was developed based on CalPERS-specific data. For more details on this table, please refer to the CalPERS website. Discount Rate The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarial assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section. According to Paragraph 30 of Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.00 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15 percent. Using this lower discount rate has resulted in a higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. Valuation date June 30, 2018 Measurement date June 30, 2019 Actuarial cost method Entry-age Normal Cost Method Actuarial Assumptions: Discount rate 7.15% Inflation 2.50% Payroll growth 3.00% Projected salary increase Varies by entry age and service depending on age, service and type of employment Investment rate of return 7.00%, net of pension plan investment and administrative expenses, including inflation Mortality Derived using CalPERS' membership data for all funds ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 55 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. New Strategic Real Return Real Return Asset Class Allocation Years 1-10(1) Years 11+(2) Global Equity 50.00% 4.80% 5.98% Fixed Income 28.00% 1.00% 2.62% Inflation Assets 0.00% 0.77% 1.81% Private Equity 8.00% 6.30% 7.23% Real Assets 13.00% 3.75% 4.93% Liquidity 1.00% 0.00% -0.92% 100.00% An expected inflation of 2.00% used for this period. An expected inflation of 2.92% used for this period. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 56 Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the County’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Payable to the Pension Plan The County did not have an outstanding amount of contributions to the pension plan required for the year ended June 30, 2020. Note 9: Other Post-Employment Benefits (OPEB) Plan Description The County provides retiree healthcare benefits to qualifying employees retiring directly from the County on a pay-as-you-go basis. Benefits include medical, dental and vision plan coverage and the benefit level is determined by date of hire and length of service. Benefits are provided through the County of Alpine Retiree Healthcare plan, a single-employer defined benefit healthcare plan administered by the County. Retirees not yet eligible for Medicare supplement coverage receive the same coverage and the same cost sharing formula as active employees until age 65. After becoming eligible for Medicare, retirees and/or their dependents who wish to retain coverage must enroll in an available plan offered by AARP. The County pays a specific dollar amount toward the cost of retiree coverage and, depending on the date of employment, may also pay a portion of the coverage for the retiree’s spouse or eligible dependents. 1% Decrease Current Discount Rate 1% Increase (6.15%) (7.15%) (8.15%) Net Pension Liability Miscellaneous $ 12,163,429 $ 7,965,137 $ 4,499,744 Safety 6,677,386 4,401,575 2,535,766 Total $ 18,840,815 $ 12,366,712 $ 7,035,510 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 57 Employees Covered As of the June 30, 2019 actuarial valuation, the following current and former employees were covered by the benefit terms under the OPEB Plan: Contributions The OPEB Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the County and the bargaining units. The annual contribution is based on the contractually required payments. Currently, the County is responsible for all payments and is charging each department, based on budgeted full time equivalents positions, their proportionate share of the pay-as-you-go costs for postemployment benefits in fiscal year 2019-2020. For the fiscal year ended June 30, 2020, the County’s pay-as-you-go payments were $545,699. Net OPEB Liability The County’s net OPEB liability was measured as of June 30, 2019 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2018, based on the following actuarial methods and assumptions: Active employees 84 Inactive employees entitled to but not yet receiving benefits - Inactive employees or beneficiaries currently receiving benefits 48 Total 132 Valuation date June 30, 2018 Measurement date June 30, 2019 Actuarial cost method Entry-Age Normal Cost, level percent of pay Asset Valuation Method1 Market Value of Assets Actuarial assumptions: Discount rate 2.79% Inflation 2.50% Payroll growth 3.25% Mortality MacLeod Watts Scale 2018 CalPERS 2017 Study Healthcare trend rate 5.0% - 7.5% Notes: 1 The Market Value of Assets is currently $0 as the Plan is not funded. Investment rate of return is not included as there are no assets in the Plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 58 Discount Rate The discount rate used to measure the total OPEB liability was 2.79%. The projection of cash flows used to determine the discount rate assumed that no future contributions are made to the OPEB Plan. The discount rate is based upon the change in the applicable municipal bond index. The County is currently funding the pay-as-you-go costs. The County does not currently have a pre-funding policy or practice for contributing additional prefunding. Changes in the OPEB Liability The changes in the net OPEB liability for the County’s OPEB Plan are as follows: Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the County if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: Increase (Decrease) Total OPEB Total Fiduciary Net Net OPEB Liability OPEB Liability (Asset) Balance at June 30, 2018 $ 15,019,029 $ - $ 15,019,029 Changes in the year: Service cost 411,657 411,657 Interest on total OPEB liability 451,829 451,829 Changes in benefit terms - - Changes in assumptions 356,817 356,817 Differences between expected and actual - experience - - Benefit payments, including refunds of employee contributions (537,255) (537,255) - Contributions from the employer 537,255 (537,255) Contributions from employees - Net investment income - - Administrative expenses - - Other charges - Net changes 683,048 - 683,048 Balance at June 30, 2019 $ 15,702,077 $ - $ 15,702,077 1% Decrease Current Discount Rate 1% Increase (1.79%) (2.79%) (3.79%) Net OPEB Liability $ 17,819,950 $ 15,702,077 $ 13,965,079 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 59 Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the County if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss: Net difference between projected and actual earnings on OPEB Plan investments are recognized over a five-year period, while all other amounts are recognized over the expected average remaining service lifetime (EARSL), 3.8 Years at June 30, 2019 measurement date. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2020, the County recognized OPEB expense of $1,276,379. As of fiscal year ended June 30, 2020, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 1% Decrease Current Healthcare 1% Increase Cost Trend Rates (6.5% to 4.00%) (7.5% to 5.00%) (8.50% to 6.00%) Net OPEB Liability $ 13,846,332 $ 15,702,077 $ 17,981,320 Deferred Outflows Deferred Inflows of Resources of Resources OPEB contibutions subsequent to the measurement date $ 545,699 $ Change in assumptions 409,627 376,491 Difference between expected and actual experience 2,251,259 Total $ 3,206,585 $ 376,491 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 60 The $545,699 reported as deferred outflows of resources related to OPEB contributions subsequent to the June 30, 2019 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: Note 10: Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County participates in a joint powers agreement established in 1980 to provide coverage for workers’ compensation and general liability exposures and to pay for the administration of the program. The Joint Powers Agreement established for its members the Trindel Insurance Fund (Trindel). The agreement for the formation of Trindel provides that the system will be self-sustaining through member premiums and will reinsure through a commercial company for claims in excess of self-insured retention. Trindel retains a self-insured retention of $300,000 for workers’ compensation and $250,000 for general liability. Above the self-insured retention for workers’ compensation, Trindel pools members risk up to 1 million dollars per occurrence and excess insurance is purchased above 1 million to statutory limit. Excess insurance is purchased above the $250,000 SIR for General Liability up to a limit of $25 million. 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 2019-2020. The County holds a deposit with Trindel Insurance from which claims are paid. At June 30, 2020, the balance of the deposit was $2,224,148. Each member of Trindel pays an annual premium to the insurance system which is evaluated each year based on the number of personnel, estimated payroll and an experience factor. Year ending Deferred Outflows/ June 30, (Inflows) of Resources 2021 $ 412,893 2022 412,893 2023 412,893 2024 420,574 2025 508,936 Thereafter 116,206 Total $ 2,284,395 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2020 61 Changes in the balance of claims liability during the fiscal years ended June 30, 2020 and 2019 were as follows: Note 11: Commitments, Contingencies and Other Information Claims and Judgments The County has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. Litigation The County is a party to several claims and actions pending. None of these claims are reflected in these financial statements. Legal counsel believes that none of the pending claims or lawsuits, either separately or in the aggregate, will have a material financial impact on the financial statements. Construction Commitments At June 30, 2020, the County had no ongoing construction commitments. Note 12: Subsequent Event On March 11, 2020 the World Health Organization declared the outbreak of coronavirus (COVID-19) a pandemic. In response, the State of California issued a shelter in-place order and the temporary closure of all businesses deemed to be nonessential. Accordingly, there will be a contraction of the national, state and County’s economy, which will potentially result in a reduction and/or delay in the receipt of tax revenues, as well as hinder certain other revenue generating operations of the County. Additionally, it may negatively impact the ability of the County to collect on certain balances due from others. While the County expects there to potentially be a negative financial impact, since the duration and impact is unknown, we are unable to reasonably quantify the effect on future financial statements. 2020 2019 Unpaid claims, beginning of year $ 1,260,420 $ 727,073 Current year claims (including incurred but not reported) 57,006 1,325,233 Claims payments and changes in estimates (117,731) (791,886) Unpaid claims, end of year $ 1,199,695 $ 1,260,420 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2020 62 County Pension Plan Schedule of Proportionate Share of the Net Pension Liability For the Measurement Period June 30, - Last 10 Years* NOTES TO THE SCHEDULES Changes in Benefit Terms – None Changes in Assumptions – In 2018, the demographic assumptions and the inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. Changes in Discount Rate – In 2018, CalPERS decreased the discount rate from 7.5% to 7.0%. * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. County Pension Plan Schedule of Contributions For the Year Ended June 30, - Last 10 Years* * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Schedule is intended to show information for ten years. Additional years will be displayed as they become available. 2019 2018 2017 2016 2015 2014 Proportion of the net pension liability 0.1207% 0.1197% 0.1189% 0.1185% 0.1193% 0.1247% Proportionate share of the net pension liaiblity $ 12,366,712 $ 11,529,473 $ 11,786,883 $ 10,258,121 $ 8,191,379 $ 7,756,690 Covered payroll $ 5,536,082 $ 5,197,259 $ 5,074,318 $ 4,868,373 $ 4,386,486 $ 4,592,478 Proportionate share of the net pension liability as a percentage of covered payroll 223.38% 221.84% 232.29% 210.71% 186.74% 168.90% Plan's fiduciary net position 35,453,146 34,802,774 33,155,122 19,769,328 19,736,186 20,796,946 Plan fiducitary net postion as a percentage of total pension liability 74.14% 75.26% 73.31% 75.11% 79.07% 79.37% Safety Plans 2020 2019 2018 2017 2016 2015 Contractually required contribution (actuarially determined) $ 1,589,560 $ 1,401,279 $ 1,224,876 $ 1,094,783 $ 1,045,383 $ 875,632 Contributions in relation to the actuarilly determined contributions 1,589,560 1,401,279 1,224,876 1,094,783 1,045,383 875,632 Contributions deficiency (excess) $ - $ - $ - $ - $ - $ - Covered employee payroll $ 5,536,377 $ 5,536,082 $ 5,074,318 $ 4,868,373 $ 4,386,486 $ 4,592,478 Contributions as a percentage of covered payroll 28.71% 25.31% 24.14% 22.49% 23.83% 19.07% ---PAGE BREAK--- Schedule of Changes in Net OPEB Liability and Related Ratios For the Measurement Period Ended June 30 Last 10 Fiscal Years* 2019 2018 2017 Total OPEB Liability Service cost $ 411,657 $ 348,106 $ 373,651 Interest on total pension liability 451,829 365,119 326,822 Change in benefit terms - - - Changes of assumptions 356,817 142,954 (664,620) Differences between expected and actual experience - 3,128,943 - Benefit payments, including refunds of employee contributions (537,255) (566,258) (513,769) Change in allocation - - - Net Change in total OPEB liability 683,048 3,418,864 (477,916) Total OPEB Liability - beginning 15,019,029 11,600,165 12,078,081 Total OPEB Liability - ending $ 15,702,077 $ 15,019,029 $ 11,600,165 Plan Fiduciary Net Position Contributions - employer $ 537,255 $ 566,258 $ 513,769 Contributions - employee - - - Net investment income - - - Benefit payments, including refunds of employee contributions (537,255) (566,258) (513,769) Administrative expense - - - Change in allocation - - - Net change in plan fiduciary net position - - - Plan Fiduciary Net Position - beginning - - - Plan Fiduciary Net Position - ending $ - $ - $ - Net OPEB liability - ending - $ 15,702,077 $ 15,019,029 $ 11,600,165 Plan fiduciary net position as a percentage of total OPEB liability 0.00% 0.00% 0.00% County's covered-employee payroll $ 5,775,843 $ 5,526,600 $ 4,919,627 Net OPEB liability as a percentage of covered-employee payroll 271.86% 271.76% 235.79% * Fiscal year 2017-18 (measurement date June 30, 2017) was the 1st year of implementation. Additional years will be presented as they become available. 63 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule General Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 8,658,609 $ 8,658,609 $ 8,658,609 $ - $ RESOURCES (inflows): Taxes 6,349,000 6,349,000 6,118,934 (230,066) Licenses and permits 25,155 25,155 27,721 2,566 Fines, forfeitures and penalties 280,000 280,000 188,299 (91,701) Use of money and property 124,731 124,731 171,470 46,739 Intergovernmental 1,207,781 1,571,626 983,462 (588,164) Charges for services 2,373,389 2,373,389 702,324 (1,671,065) Other revenues 103,670 103,670 208,542 104,872 Transfers from other funds 3,146,497 3,214,887 1,101,783 (2,113,104) Amounts Available for Appropriation 22,268,832 22,701,067 18,161,144 (4,539,923) CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 479,495 524,495 528,403 (3,908) County Administrative Officer 150,369 150,369 142,126 8,243 Personnel 217,563 279,767 227,795 51,972 Auditor-Controller 497,500 519,915 487,438 32,477 OMB 87 Central Services 324,385 324,385 (377,874) 702,259 General Central Services 52,992 52,992 51,617 1,375 Information Technology 278,301 278,301 311,158 (32,857) Treasurer-Tax Collector 249,019 226,606 224,201 2,405 Assessor 389,657 389,657 353,354 36,303 Elections 32,773 42,773 38,736 4,037 Buildings & Grounds 535,042 535,042 508,728 26,314 Risk Management 1,178,749 1,178,749 (320,057) 1,498,806 Retiree Benefits 412,000 412,000 391,395 20,605 Legal Counsel 207,384 207,384 181,455 25,929 Tax Collector Costs 11,600 11,600 - 11,600 Contingency 300,000 126,608 - 126,608 Total General Government 5,316,829 5,260,643 2,748,475 2,512,168 Public protection: County Clerk 374,666 374,666 370,369 4,297 Recorder 126,742 126,742 120,882 5,860 Surveyor / Engineer 20,000 20,000 17,956 2,044 Grand Jury 18,803 18,803 13,503 5,300 District Attorney 320,832 320,832 307,091 13,741 Public Defender 58,000 58,000 52,564 5,436 continued 64 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Sheriff / Coroner 3,265,953 3,322,141 3,280,180 41,961 Jail 55,000 55,000 55,000 - Sheriff Grants 8,879 179,159 120,029 59,130 Communications 148,126 148,126 152,079 (3,953) Probation 135,848 135,848 121,682 14,166 East Slope Fire / EMS 299,382 299,382 285,737 13,645 Agricultural Commission 13,727 13,727 13,727 - Planning Department 168,618 328,618 156,473 172,145 Local Agency Formation 2,975 2,975 1,075 1,900 AB233 Court Distribution 118,745 118,745 95,529 23,216 Total Public Protection 5,136,296 5,522,764 5,163,876 358,888 Public ways and facilities: BV Building & Grounds 87,080 87,080 81,403 5,677 Total Public Ways & Facilities 87,080 87,080 81,403 5,677 Health and sanitation: County Emergency Services 89,800 89,800 101,154 (11,354) Bear Valley Fire Department 84,148 84,148 79,924 4,224 Bear Valley EMS 10,308 10,308 4,473 5,835 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 9,917 9,917 11,408 (1,491) Total Health and Sanitation 216,037 216,037 218,823 (2,786) Public assistance: Community Development 548,420 783,327 662,146 121,181 Social Services Assistance 28,250 28,250 13,214 15,036 General Relief 2,750 2,750 375 2,375 Total Public Assistance 579,420 814,327 675,735 138,592 Education: Superintendent of Schools 66,790 66,790 64,863 1,927 Library 339,740 339,740 332,045 7,695 Total Education 406,530 406,530 396,908 9,622 Recreation and cultural services: Museum 45,959 45,959 38,073 7,886 Capital outlay: Capital Outlay 920,293 571,068 330,213 240,855 Transfers to other funds: General Contribution 2,272,564 2,401,883 336,285 2,065,598 Total Charges to Appropriations 14,981,008 15,326,291 9,989,791 5,336,500 BUDGETARY FUND BALANCE, JUNE 30 7,287,824 $ 7,374,776 $ 8,171,353 $ 796,577 $ continued 65 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2020 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 18,161,144 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (8,658,609) Revenues from sale of capital assets in the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes (286) A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,101,783) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 8,400,466 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 9,989,791 $ 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 The County does not include the deposit held by the claims administrator for budgetary purposes 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 - Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (336,285) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 9,653,506 $ 66 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 1,600,907 $ 1,600,907 $ 1,600,907 $ - $ RESOURCES (inflows): Licenses and permits 600 600 550 (50) Fines, forfeitures and penalties 700 700 1,237 537 Use of money and property 4,500 4,500 26,742 22,242 Intergovernmental 3,590,113 3,870,113 3,194,989 (675,124) Charges for services 374,100 374,000 294,789 (79,211) Other revenues 325 325 3,109 2,784 Sale of assets - - 15,850 15,850 Transfers from other funds 1,258 1,258 1,258 - Amounts Available for Appropriation 5,572,503 5,852,403 5,139,431 (712,972) CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 1,661,942 1,589,942 1,357,991 231,951 Capital Outlay 3,032,520 3,384,520 2,760,426 624,094 Transfers to other funds 74,700 74,700 74,700 - Total Charges to Appropriations 4,769,162 5,049,162 4,193,117 856,045 BUDGETARY FUND BALANCE, JUNE 30 803,341 $ 803,241 $ 946,314 $ 143,073 $ 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 5,139,431 $ 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 (1,600,907) Equipment rental revenue is generated intrafund and reported as a budgetary resource but eliminated for financial reporting purposes and not considered current-year revenue Proceeds from the sale of assets are inflows of budgetary resources but are not revenues for financial reporting purposes (15,850) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,258) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 3,521,416 $ 67 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund For the Year Ended June 30, 2020 Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 4,193,117 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 Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (74,700) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 4,118,417 $ 68 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 3,408,860 $ 3,408,860 $ 3,408,860 $ - $ RESOURCES (inflows): Use of money and property 28,471 28,471 74,944 46,473 Intergovernmental 1,485,000 1,485,000 1,234,318 (250,682) Other revenues - - - - Amounts Available for Appropriation 4,922,331 4,922,331 4,718,122 (204,209) CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,880,184 1,841,939 1,298,687 543,252 Capital Outlay 13,000 51,245 54,303 (3,058) Transfers out to other funds 290,000 290,000 290,000 - Total Charges to Appropriations 2,183,184 2,183,184 1,642,990 540,194 BUDGETARY FUND BALANCE, JUNE 30 2,739,147 $ 2,739,147 $ 3,075,132 $ 335,985 $ 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 4,718,122 $ 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 (3,408,860) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,309,262 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,642,990 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (290,000) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,352,990 $ 69 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 11,580,392 $ 11,580,392 $ 11,580,392 $ - $ RESOURCES (inflows): Use of money and property 29,561 29,561 223,285 193,724 Intergovernmental 1,861,925 1,861,925 2,365,524 503,599 Transfer in 55,000 55,000 - (55,000) Amounts Available for Appropriation 13,526,878 13,526,878 14,169,201 642,323 CHARGES TO APPROPRIATIONS (outflows) Public protection 151,612 151,612 141,673 9,939 Capital Outlay 163,700 163,700 142,371 21,329 Transfers out to other funds 4,234,044 4,350,135 3,989,123 361,012 Total Charges to Appropriations 4,549,356 4,665,447 4,273,167 392,280 BUDGETARY FUND BALANCE, JUNE 30 8,977,522 $ 8,861,431 $ 9,896,034 $ 1,034,603 $ 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 14,169,201 $ 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 (11,580,392) 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 2,588,809 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 4,273,167 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (3,989,123) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 284,044 $ 70 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Social Services Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget BUDGETARY FUND BALANCE, JULY 1 8,871 $ 8,871 $ 8,871 $ - $ RESOURCES (inflows): Use of money and property 5,400 5,400 2,654 (2,746) Intergovernmental 781,781 781,781 503,177 (278,604) Other revenues 14,200 14,200 5,763 (8,437) Sale of assets - - 3,977 3,977 Transfers in 810,189 840,189 738,467 (101,722) Amounts Available for Appropriation 1,620,441 1,650,441 1,262,909 (387,532) CHARGES TO APPROPRIATIONS (outflows): Public Assistance 1,554,857 1,640,948 1,349,034 291,914 Capital Outlay 4,300 4,300 - 4,300 Transfers out to other funds 3,000 3,000 1,617 1,383 Total Charges to Appropriations 1,562,157 1,648,248 1,350,651 297,597 BUDGETARY FUND BALANCE, JUNE 30 58,284 $ 2,193 $ (87,742) $ (89,935) $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 1,262,909 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (8,871) Revenues from sale of capital assets in the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes (3,977) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (738,467) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 511,594 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,350,651 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (1,617) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,349,034 $ 71 ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information For the Year Ended June 30, 2019 72 BUDGETARY BASIS OF ACCOUNTING In accordance with the provisions of Sections 29000 and 29144, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year. A tentative budget approved no later than June 30 of each year establishes the legal authority for county spending in the following fiscal year until a final budget is adopted on or before October 2nd. Prior to adoption of the final budget, a public hearing is held to receive comments prior to adoption. From the effective date of the budget, which is adopted and controlled at the departmental level, the amounts stated therein as proposed expenditures become appropriations to the various County departments. However, the legal level of control is the fund level. The Board of Supervisors may amend the budget by resolution during the fiscal year. Department heads may, upon approval of the Treasurer- Tax Collector-Auditor Controller and the County Administrative Officer, make transfers from one object or purpose to another within the same budget unit. All other budget amendments must be approved by the County Board of Supervisors. It is the final revised budget that is presented in the required supplementary information section of this financial report. Appropriations lapse at year end. Budgets are adopted for the General Fund, all special revenue funds, permanent fund and capital projects funds. Accounting principles applied for purposes of developing data on a budgetary basis are materially the same as those used to present financial statements in conformity with GAAP, except that transfers are regarded as inflows of resources for budgetary purposes and not revenues for GAAP financial statement presentation purposes and transfers out are considered outflows of resources for budgetary purposes but not expenditures for GAAP financial statement presentation purposes. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION Combining Fund Statements ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2020 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 7,632,651 $ 532,045 $ 380,687 $ 636 $ 8,546,019 $ Accounts receivable 60,074 - - - 60,074 Taxes receivable 20,869 - - - 20,869 Due from other governments 665,995 - - - 665,995 Interest receivable 27,155 1,895 1,088 - 30,138 Due from other funds 149,290 - 35,310 112,296 296,896 Advance to other funds 2,800 - - - 2,800 Prepaid expenses - - - - - Total Assets 8,558,834 $ 533,940 $ 417,085 $ 112,932 $ 9,622,791 $ LIABILITIES Accounts payable 193,917 $ - $ 43,760 $ - $ 237,677 $ Accrued salaries and benefits 5,475 - - - 5,475 Due to other funds 276,710 - - 112,932 389,642 Advance from other funds 32,800 - - - 32,800 Unearned revenues - - - - - Total Liabilities 508,902 - 43,760 112,932 665,594 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 467,271 - - - 467,271 FUND BALANCES Nonspendable 2,800 473,691 - - 476,491 Restricted 6,657,634 - 74,437 - 6,732,071 Committed 1,099,292 - 153,362 - 1,252,654 Assigned - 60,249 145,526 - 205,775 Unassigned (177,065) - - - (177,065) Total Fund Balances 7,582,661 533,940 373,325 - 8,489,926 Total Liabilities, Deferred Inflows of Resources and Fund Balances 8,558,834 $ 533,940 $ 417,085 $ 112,932 $ 9,622,791 $ 73 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2020 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 346,822 $ - $ - $ - $ 346,822 $ Licenses and permits 55,031 - - - 55,031 Fines, forfeitures and penalties 821 - - - 821 Use of money and property 177,403 12,685 37,479 - 227,567 Intergovernmental 3,491,260 - - - 3,491,260 Charges for services 557,782 - - - 557,782 Other revenues 93,617 - - - 93,617 Total Revenues 4,722,736 12,685 37,479 - 4,772,900 EXPENDITURES Current: General government 44,391 10,208 - - 54,599 Public protection 644,452 - - - 644,452 Public ways and facilities 465,544 - - - 465,544 Health and sanitation 2,089,495 - - - 2,089,495 Public assistance - - - - - Education - - - - - Capital outlay - - 151,139 - 151,139 Debt service: Principal - - - 81,138 81,138 Interest and issuance cost - - - 31,158 31,158 Total Expenditures 3,243,882 10,208 151,139 112,296 3,517,525 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,478,854 2,477 (113,660) (112,296) 1,255,375 OTHER FINANCING SOURCES AND USES Gain/(loss) on sale of capital assets - - - - - Transfers in 1,038,049 - 35,310 112,296 1,185,655 Transfers out (1,103,264) - (42,553) - (1,145,817) Total Other Financing Sources (Uses) (65,215) - (7,243) 112,296 39,838 NET CHANGES IN FUND BALANCES 1,413,639 2,477 (120,903) - 1,295,213 Fund Balances, Beginning of Year 6,169,022 531,463 494,228 - 7,194,713 FUND BALANCES, END OF YEAR 7,582,661 $ 533,940 $ 373,325 $ - $ 8,489,926 $ 74 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2020 State STPUD Public Environmental Drug and Mitigation Health Health Alcohol ASSETS Cash and investments 1,207,380 $ 446,108 $ 677 $ 404,815 $ Accounts receivable - 5,715 2,335 - Taxes receivable - - - - Due from other governments - 94,167 - 185,754 Interest receivable 4,208 1,266 - 1,321 Due from other funds - 103,821 45,469 - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 1,211,588 $ 651,077 $ 48,481 $ 591,890 $ LIABILITIES Accounts payable - $ 7,102 $ 10,907 $ 2,286 $ Accrued salaries and benefits - 500 55 821 Due to other funds 112,296 - 65,327 - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 112,296 7,602 76,289 3,107 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 66,652 78,071 FUND BALANCES Nonspendable - - - - Restricted - 576,823 - 510,712 Committed 1,099,292 - - - Unassigned - - (27,806) - Total Fund Balances 1,099,292 576,823 (27,806) 510,712 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,211,588 $ 651,077 $ 48,481 $ 591,890 $ continued 75 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 Mental One-Stop Fish and Health Services Tobacco Game ASSETS Cash and investments 38,254 $ - $ 533,414 $ 10,936 $ Accounts receivable 2,395 - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 266 - 1,914 38 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 40,915 $ - $ 535,328 $ 10,974 $ LIABILITIES Accounts payable 11,424 $ - $ 13,444 $ 600 $ Accrued salaries and benefits 1,609 - 215 - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 13,033 - 13,659 600 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 27,882 - 521,669 10,374 Committed - - - - Unassigned - - - - Total Fund Balances 27,882 - 521,669 10,374 Total Liabilities, Deferred Inflows of Resources and Fund Balances 40,915 $ - $ 535,328 $ 10,974 $ continued 76 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 District Parking Attorney Records Victim Building Airport Mgmt Witness ASSETS Cash and investments 60,752 $ 53,629 $ 16,062 $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - 23,109 Interest receivable 119 188 56 - Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 60,871 $ 53,817 $ 16,118 $ 23,109 $ LIABILITIES Accounts payable 2,950 $ - $ - $ 2,553 $ Accrued salaries and benefits 688 - - 170 Due to other funds - - - 62 Advance from other funds - - - 30,000 Unearned revenues - - - - Total Liabilities 3,638 - - 32,785 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 23,109 FUND BALANCES Nonspendable - - - - Restricted 57,233 53,817 16,118 - Committed - - - - Unassigned - - - (32,785) Total Fund Balances 57,233 53,817 16,118 (32,785) Total Liabilities, Deferred Inflows of Resources and Fund Balances 60,871 $ 53,817 $ 16,118 $ 23,109 $ continued 77 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 Youth CC Perf. Cal-Mmet Offender Incentives COPS Sheriff Block Grant Fund Grant Grants ASSETS Cash and investments 180,418 $ 1,498,803 $ 4 $ 296,526 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 22,808 50,000 - 12,021 Interest receivable 624 5,264 - 1,325 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 203,850 $ 1,554,067 $ 4 $ 309,872 $ LIABILITIES Accounts payable 6,636 $ 82 $ - $ - $ Accrued salaries and benefits 104 157 - - Due to other funds - - 796 - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 6,740 239 796 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 12,021 FUND BALANCES Nonspendable - - - - Restricted 197,110 1,553,828 - 297,851 Committed - - - - Unassigned - - (792) - Total Fund Balances 197,110 1,553,828 (792) 297,851 Total Liabilities, Deferred Inflows of Resources and Fund Balances 203,850 $ 1,554,067 $ 4 $ 309,872 $ continued 78 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 Law Assessor's Recorder's Enforcement Special Special Search and AB443 Revenue Fund Revenue Fund Rescue ASSETS Cash and investments 846,925 $ 40,746 $ 92,409 $ 16,885 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 3,748 142 321 59 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 850,673 $ 40,888 $ 92,730 $ 16,944 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities - - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 850,673 40,888 92,730 16,944 Committed - - - - Unassigned - - - - Total Fund Balances 850,673 40,888 92,730 16,944 Total Liabilities, Deferred Inflows of Resources and Fund Balances 850,673 $ 40,888 $ 92,730 $ 16,944 $ continued 79 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 County Alpine County Service Bear Valley Bear Valley Transportation Area No. 1 Public Safety Solid Waste Commission ASSETS Cash and investments 674,801 $ 375,748 $ 10,885 $ 304 $ Accounts receivable 27,530 - - - Taxes receivable 20,869 - - - Due from other governments - - - 44,985 Interest receivable 2,136 1,218 18 - Due from other funds - - - - Advance to other funds - - - 2,800 Prepaid expenses - - - - Total Assets 725,336 $ 376,966 $ 10,903 $ 48,089 $ LIABILITIES Accounts payable 3,859 $ - $ 57,827 $ 22,985 $ Accrued salaries and benefits - 513 - - Due to other funds - - - 54,080 Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 3,859 513 57,827 77,065 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 20,123 - - 36,982 FUND BALANCES Nonspendable - - - 2,800 Restricted 701,354 376,453 - - Committed - - - - Unassigned - - (46,924) (68,758) Total Fund Balances 701,354 376,453 (46,924) (65,958) Total Liabilities, Deferred Inflows of Resources and Fund Balances 725,336 $ 376,966 $ 10,903 $ 48,089 $ continued 80 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 Local State Transit Chamber of Transportation Assistance Commerce Fire Fund Fund Programs Protection ASSETS Cash and investments 187,766 $ 50,976 $ 22,401 $ 305,468 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 2,836 - - Interest receivable 656 171 - 1,073 Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 188,422 $ 53,983 $ 22,401 $ 306,541 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds - - - 35,310 Advance from other funds 2,800 - - - Unearned revenues - - - - Total Liabilities 2,800 - - 35,310 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 185,622 53,983 22,401 271,231 Committed - - - - Unassigned - - - - Total Fund Balances 185,622 53,983 22,401 271,231 Total Liabilities, Deferred Inflows of Resources and Fund Balances 188,422 $ 53,983 $ 22,401 $ 306,541 $ continued 81 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 Title III SNC Woodstove Secure Rural Court Prop. 84 Replacement Schools Services Grant Program ASSETS Cash and investments 91,786 $ 28,938 $ 1,200 $ 47 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 292 84 4 - Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 92,078 $ 29,022 $ 1,204 $ 47 $ LIABILITIES Accounts payable 1,807 $ 28,491 $ - $ - $ Accrued salaries and benefits - - - - Due to other funds - - - - Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 1,807 28,491 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 90,271 531 1,204 47 Committed - - - - Unassigned - - - - Total Fund Balances 90,271 531 1,204 47 Total Liabilities, Deferred Inflows of Resources and Fund Balances 92,078 $ 29,022 $ 1,204 $ 47 $ continued 82 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 Public Behavioral Public Other Health Health Safety Miscellaneous Misc. Grants Misc. Grants Misc. Grants Grants ASSETS Cash and investments 137,520 $ 20 $ 48 $ - $ Accounts receivable - - - 22,099 Taxes receivable - - - - Due from other governments 230,315 - - - Interest receivable 644 - - - Due from other funds - - - - Advance to other funds - - - - Prepaid expenses - - - - Total Assets 368,479 $ 20 $ 48 $ 22,099 $ LIABILITIES Accounts payable 20,964 $ - $ - $ - $ Accrued salaries and benefits 643 - - - Due to other funds 2,088 - - 6,751 Advance from other funds - - - - Unearned revenues - - - - Total Liabilities 23,695 - - 6,751 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 230,315 - - - FUND BALANCES Nonspendable - - - - Restricted 114,469 20 48 15,348 Committed - - - - Unassigned - - - - Total Fund Balances 114,469 20 48 15,348 Total Liabilities, Deferred Inflows of Resources and Fund Balances 368,479 $ 20 $ 48 $ 22,099 $ continued 83 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2020 Total ASSETS Cash and investments 7,632,651 $ Accounts receivable 60,074 Taxes receivable 20,869 Due from other governments 665,995 Interest receivable 27,155 Due from other funds 149,290 Advance to other funds 2,800 Prepaid expenses - Total Assets 8,558,834 $ LIABILITIES Accounts payable 193,917 $ Accrued salaries and benefits 5,475 Due to other funds 276,710 Advance from other funds 32,800 Unearned revenues - Total Liabilities 508,902 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 467,271 FUND BALANCES Nonspendable 2,800 Restricted 6,657,634 Committed 1,099,292 Unassigned (177,065) Total Fund Balances 7,582,661 Total Liabilities, Deferred Inflows of Resources and Fund Balances 8,558,834 $ 84 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 State STPUD Public Environmental Drug and Mitigation Health Health Alcohol REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 28,166 15,420 - 7,916 Intergovernmental - 809,815 15,008 389,515 Charges for services 19,600 44,973 55,622 - Other revenues - 5,327 159 - Total Revenues 47,766 875,535 70,789 397,431 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - 460,117 114,482 291,121 Public assistance - - - - Capital outlay - - - - Total Expenditures - 460,117 114,482 291,121 Excess (Deficiency) of Revenues Over (Under) Expenditures 47,766 415,418 (43,693) 106,310 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - 200,573 45,469 11,587 Transfers out (112,296) (49,600) - - Total Other Financing Sources (Uses) (112,296) 150,973 45,469 11,587 NET CHANGES IN FUND BALANCES (64,530) 566,391 1,776 117,897 Fund Balances, Beginning of Year 1,163,822 10,432 (29,582) 392,815 FUND BALANCES, END OF YEAR 1,099,292 $ 576,823 $ (27,806) $ 510,712 $ continued 85 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 Mental One-Stop Fish and Health Services Tobacco Game REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - 226 Use of money and property 1,183 - 10,029 450 Intergovernmental 157,698 - 440,020 16 Charges for services - - - - Other revenues - - - 2,250 Total Revenues 158,881 - 450,049 2,942 EXPENDITURES Current: General government - - - - Public protection - - - 58,911 Public ways and facilities - - - - Health and sanitation 512,400 - 212,388 - Public assistance - - - - Capital outlay - - - - Total Expenditures 512,400 - 212,388 58,911 Excess (Deficiency) of Revenues Over (Under) Expenditures (353,519) - 237,661 (55,969) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in 395,793 - - - Transfers out - - - - Total Other Financing Sources (Uses) 395,793 - - - NET CHANGES IN FUND BALANCES 42,274 - 237,661 (55,969) Fund Balances, Beginning of Year (14,392) - 284,008 66,343 FUND BALANCES, END OF YEAR 27,882 $ - $ 521,669 $ 10,374 $ continued 86 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 District Parking Attorney Records Victim Building Airport Mgmt Witness REVENUES Taxes - $ - $ - $ - $ Licenses and permits 55,031 - - - Fines, forfeitures and penalties - - - - Use of money and property 542 1,267 377 - Intergovernmental - 10,000 - 74,431 Charges for services 62,284 - - - Other revenues 750 - - - Total Revenues 118,607 11,267 377 74,431 EXPENDITURES Current: General government - - - - Public protection 182,836 - - 74,777 Public ways and facilities - 7,899 - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 182,836 7,899 - 74,777 Excess (Deficiency) of Revenues Over (Under) Expenditures (64,229) 3,368 377 (346) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in 96,000 - - - Transfers out - - - - Total Other Financing Sources (Uses) 96,000 - - - NET CHANGES IN FUND BALANCES 31,771 3,368 377 (346) Fund Balances, Beginning of Year 25,462 50,449 15,741 (32,439) FUND BALANCES, END OF YEAR 57,233 $ 53,817 $ 16,118 $ (32,785) $ continued 87 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 Youth CC Perf. Cal-Mmet Offender Incentives COPS Sheriff Block Grant Fund Grant Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 4,038 34,313 - 7,936 Intergovernmental 117,000 200,000 - 123,060 Charges for services - - - - Other revenues - - - - Total Revenues 121,038 234,313 - 130,996 EXPENDITURES Current: General government - - - - Public protection 88,355 49,465 - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 88,355 49,465 - - Excess (Deficiency) of Revenues Over (Under) Expenditures 32,683 184,848 - 130,996 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out - (12,070) - (125,000) Total Other Financing Sources (Uses) - (12,070) - (125,000) NET CHANGES IN FUND BALANCES 32,683 172,778 - 5,996 Fund Balances, Beginning of Year 164,427 1,381,050 (792) 291,855 FUND BALANCES, END OF YEAR 197,110 $ 1,553,828 $ (792) $ 297,851 $ continued 88 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 Law Enforcement Assessor's Recorder's Search and AB443 Trust Trust Rescue REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 25,649 910 2,040 394 Intergovernmental 500,000 - - - Charges for services - - 751 - Other revenues - 6,238 13,531 1,000 Total Revenues 525,649 7,148 16,322 1,394 EXPENDITURES Current: General government - 1,706 - - Public protection 3,242 - 1,590 - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 3,242 1,706 1,590 - Excess (Deficiency) of Revenues Over (Under) Expenditures 522,407 5,442 14,732 1,394 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out (484,992) - - - Total Other Financing Sources (Uses) (484,992) - - - NET CHANGES IN FUND BALANCES 37,415 5,442 14,732 1,394 Fund Balances, Beginning of Year 813,258 35,446 77,998 15,550 FUND BALANCES, END OF YEAR 850,673 $ 40,888 $ 92,730 $ 16,944 $ continued 89 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 County Alpine County Service Bear Valley Bear Valley Transportation Area No. 1 Public Safety Solid Waste Commission REVENUES Taxes 281,822 $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties 595 - - - Use of money and property 15,427 7,615 - - Intergovernmental 478 - - 94,182 Charges for services - 311,681 62,871 - Other revenues - - - - Total Revenues 298,322 319,296 62,871 94,182 EXPENDITURES Current: General government - - - - Public protection - 127,265 - - Public ways and facilities 255,257 - - 102,388 Health and sanitation - - 132,935 - Public assistance - - - - Capital outlay - - - - Total Expenditures 255,257 127,265 132,935 102,388 Excess (Deficiency) of Revenues Over (Under) Expenditures 43,065 192,031 (70,064) (8,206) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in 1,000 49,600 2,000 - Transfers out - (241,188) - - Total Other Financing Sources (Uses) 1,000 (191,588) 2,000 - NET CHANGES IN FUND BALANCES 44,065 443 (68,064) (8,206) Fund Balances, Beginning of Year 657,289 376,010 21,140 (57,752) FUND BALANCES, END OF YEAR 701,354 $ 376,453 $ (46,924) $ (65,958) $ continued 90 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 Local State Transit Chamber of Transportation Assistance Commerce Fire Fund Fund Programs Protection REVENUES Taxes - $ - $ 65,000 $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 5,528 1,076 107 4,024 Intergovernmental 43,320 12,007 - - Charges for services - - - - Other revenues - - - 64,362 Total Revenues 48,848 13,083 65,107 68,386 EXPENDITURES Current: General government - - 42,685 - Public protection - - - - Public ways and facilities 100,000 - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 100,000 - 42,685 - Excess (Deficiency) of Revenues Over (Under) Expenditures (51,152) 13,083 22,422 68,386 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - 207,536 Transfers out - - - (47,512) Total Other Financing Sources (Uses) - - - 160,024 NET CHANGES IN FUND BALANCES (51,152) 13,083 22,422 228,410 Fund Balances, Beginning of Year 236,774 40,900 (21) 42,821 FUND BALANCES, END OF YEAR 185,622 $ 53,983 $ 22,401 $ 271,231 $ continued 91 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 Title III SNC Woodstove Secure Rural Court Prop. 84 Replacement Schools Services Grant Program REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 1,991 380 26 1 Intergovernmental 24,930 - - - Charges for services - - - - Other revenues - - - - Total Revenues 26,921 380 26 1 EXPENDITURES Current: General government - - - - Public protection 29,520 28,491 - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 29,520 28,491 - - Excess (Deficiency) of Revenues Over (Under) Expenditures (2,599) (28,111) 26 1 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - 28,491 - - Transfers out - - - - Total Other Financing Sources (Uses) - 28,491 - - NET CHANGES IN FUND BALANCES (2,599) 380 26 1 Fund Balances, Beginning of Year 92,870 151 1,178 46 FUND BALANCES, END OF YEAR 90,271 $ 531 $ 1,204 $ 47 $ continued 92 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 Pubic Behavioral Public Other Health Health Safety Miscellaneous Misc. Grants Misc. Grants Misc. Grants Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 597 1 - - Intergovernmental 479,780 - - - Charges for services - - - - Other revenues - - - - Total Revenues 480,377 1 - - EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 366,013 - - 39 Public assistance - - - - Capital outlay - - - - Total Expenditures 366,013 - - 39 Excess (Deficiency) of Revenues Over (Under) Expenditures 114,364 1 - (39) OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - - - - Transfers in - - - - Transfers out (30,606) - - - Total Other Financing Sources (Uses) (30,606) - - - NET CHANGES IN FUND BALANCES 83,758 1 - (39) Fund Balances, Beginning of Year 30,711 19 48 15,387 FUND BALANCES, END OF YEAR 114,469 $ 20 $ 48 $ 15,348 $ continued 93 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2020 Total REVENUES Taxes 346,822 $ Licenses and permits 55,031 Fines, forfeitures and penalties 821 Use of money and property 177,403 Intergovernmental 3,491,260 Charges for services 557,782 Other revenues 93,617 Total Revenues 4,722,736 EXPENDITURES Current: General government 44,391 Public protection 644,452 Public ways and facilities 465,544 Health and sanitation 2,089,495 Public assistance - Capital outlay - Total Expenditures 3,243,882 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,478,854 OTHER FINANCING SOURCES (USES) Gain/(loss) on sale of capital assets - Transfers in 1,038,049 Transfers out (1,103,264) Total Other Financing Sources (Uses) (65,215) NET CHANGES IN FUND BALANCES 1,413,639 Fund Balances, Beginning of Year 6,169,022 FUND BALANCES, END OF YEAR 7,582,661 $ 94 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2020 Leviathan Inter Accumulated Peak Communications Capital Vehicle Communications Capital Outlay Replacement Tower Maintenance ASSETS Cash and investments 81,226 $ 64,026 $ 74,178 $ 161,257 $ Accounts receivable - - - - Due from other governments - - - - Interest receivable - 274 259 555 Due from other funds - 35,310 - - Advance to other funds - - - - Total Assets 81,226 $ 99,610 $ 74,437 $ 161,812 $ LIABILITIES Accounts payable - $ 35,310 $ - $ 8,450 $ Due to other funds - - - - Advance from other funds - - - - Total Liabilities - 35,310 - 8,450 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Restricted - - 74,437 - Committed - - - 153,362 Assigned 81,226 64,300 - - Unassigned - - - - Total Fund Balances 81,226 64,300 74,437 153,362 Total Liabilities, Deferred Inflows of Resources and Fund Balances 81,226 $ 99,610 $ 74,437 $ 161,812 $ continued 95 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2020 Total ASSETS Cash and investments 380,687 $ Accounts receivable - Due from other governments - Interest receivable 1,088 Due from other funds 35,310 Advance to other funds - Total Assets 417,085 $ LIABILITIES Accounts payable 43,760 $ Due to other funds - Advance from other funds - Total Liabilities 43,760 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - Fund Balances: Restricted 74,437 Committed 153,362 Assigned 145,526 Unassigned - Total Fund Balances 373,325 Total Liabilities, Deferred Inflows of Resources and Fund Balances 417,085 $ 96 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended June 30, 2020 Leviathan Inter Accumulated Peak Communications Capital Vehicle Communications Capital Outlay Replacement Tower Maintenance REVENUES Use of money and property 329 $ 2,188 $ 1,743 $ 33,219 $ Fines, forfeitures and penalties - - - - Intergovernmental - - - - Other revenues - - - - Total Revenues 329 2,188 1,743 33,219 EXPENDITURES Capital outlay 92,577 35,310 - 23,252 Total Expenditures 92,577 35,310 - 23,252 Excess (Deficiency) of Revenues Over (Under) Expenditures (92,248) (33,122) 1,743 9,967 OTHER FINANCING SOURCES (USES) Sale of Assets - - - - Transfers in - 35,310 - - Transfers out - (42,553) - - Total Other Financing Sources (Uses) - (7,243) - - NET CHANGES IN FUND BALANCES (92,248) (40,365) 1,743 9,967 Fund Balances, Beginning of Year 173,474 104,665 72,694 143,395 FUND BALANCES, END OF YEAR 81,226 $ 64,300 $ 74,437 $ 153,362 $ continued 97 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (con Nonmajor Capital Projects Funds For the Year Ended June 30, 2020 Total REVENUES Use of money and property 37,479 $ Fines, forfeitures and penalties - Intergovernmental - Other revenues - Total Revenues 37,479 EXPENDITURES Capital outlay 151,139 Total Expenditures 151,139 Excess (Deficiency) of Revenues Over (Under) Expenditures (113,660) OTHER FINANCING SOURCES (USES) Sale of Assets - Transfers in 35,310 Transfers out (42,553) Total Other Financing Sources (Uses) (7,243) NET CHANGES IN FUND BALANCES (120,903) Fund Balances, Beginning of Year 494,228 FUND BALANCES, END OF YEAR 373,325 $ 98