Document alpinecountyca_gov_doc_e64ce467d0

COUNTY OF ALPINE, CALIFORNIA ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2015 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Independent Auditor’s Report 1-3 Management’s Discussion and Analysis (Required Supplementary Information) 4-17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements: Governmental Funds: Balance Sheet 20 Reconciliation of the Balance Sheet to the Statement of Net Position 21 Statement of Revenues, Expenditures and Changes in Fund Balances 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 23 Proprietary Funds: Statement of Net Position 24 Statement of Revenues, Expenses and Changes in Fund Net Position 25 Statement of Cash Flows 26 Fiduciary Funds: Statement of Fiduciary Net Position 27 Statement of Changes in Fiduciary Net Position 28 Notes to the Basic Financial Statements 29-61 Required Supplementary Information: Schedule of Funding Progress – County Postemployment Healthcare Plan 62 County Pension Plans – Schedule of Proportionate Share of the Net Pension Liability 63 County Pension Plans – Schedule of Contributions 64 County Pension Plans – Notes to the County Pension Plans 65-66 Budgetary Comparison Schedules: General Fund 67-69 Road Fund 70 Mental Health Services Act 71 Realignment Fund 72 Note to Required Supplementary Information 73 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Balance Sheet 74 Statement of Revenues, Expenditures and Changes in Fund Balances 75 Nonmajor Special Revenue Funds: Combining Balance Sheet 76-86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 87-97 Nonmajor Capital Projects Funds: Combining Balance Sheet 98-100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 101-103 ---PAGE BREAK--- 1 INDEPENDENT AUDITOR’S REPORT To the Board of Supervisors of the County of Alpine Susanville, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, 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, 2015, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Alpine County Children and Families Commission (the Commission), the discretely presented component unit, which represent 100% 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 in our opinion, insofar as it relates to the amounts included for the Commission, is based solely on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal ---PAGE BREAK--- 2 control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County of Alpine, California, as of June 30, 2015, 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. Emphasis of Matter Change in Accounting Principle As discussed in Note 7 in the financial statements, effective July 1, 2014, the County implemented the provisions of Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. Our opinion is not modified with respect to this matter. 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 4-12, Schedule of Funding Progress – Retiree Healthcare Plan on page 62, County Pension Plan – Schedule of Proportionate Share of the Net Pension Liability on page 63, County Pension Plan - Schedule of Contributions on page 64, Notes to County Pension Plans on pages 65-66, and Budgetary Comparison Schedules on pages 67-72, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. ---PAGE BREAK--- 3 The combining nonmajor fund financial statements, as listed in the table of contents, 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. In our opinion, the combining nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2016, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Clovis, California March 16, 2016 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 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, 2015. 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 County adopted Government Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. These two statements have a significant impact to the accounting and reporting of pension related balances and transactions. The County’s unfunded pension liability of $8,082,775 was reported in the government-wide financial statements. The County’s contributions for FY 2014-2015 were reported as deferred outflows of resources as required by these statements. New note disclosures and supplementary schedules were also included.  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 $32,422,254 (net position). Unrestricted net position which normally is discretionary and available to meet ongoing obligations to citizens and creditors was deficit by $3,262,068 primarily due to the implementation of the pension reporting standards mentioned above. $19,726,665 is restricted and must be used only for specific purposes and $15,957,657 is invested in capital assets, net of related debt.  As of June 30, 2015, the County’s governmental funds reported combined fund balances of $27,073,393, an increase of $2,664,357 because current year revenues exceeded current year expenditures.  Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 93.65% of ending fund balance. Of this amount, $19,069,816 is restricted by law or externally imposed requirements, $1,106,621 is committed for specific purposes and $2,805,723 is assigned for specific purposes based on the intent of the Board of Supervisors.  At the end of the current fiscal year, unassigned fund balance for the General Fund was $2,501,076. Of this amount, $1,000,000 is set aside as the County’s general reserve for emergencies and $1,501,076, or 19.87% of total General Fund expenditures, is available for spending towards operations in subsequent years.  The County’s capital asset balances decreased by $23,453 or less than 1% during the current fiscal year. The decrease results from depreciation of $1,160,639 and the write off of $348,614 of construction in progress cost reduced by new purchases of $625,479 and construction additions of $769,317. Project costs of $348,614 were removed from construction in process because projects were abandoned during the year or accumulated costs incurred did not qualify for capitalization. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 5  Long-term liabilities were restated to include the beginning balance of the County’s unfunded pension liability of $10,221,745. Notwithstanding this, the County’s long-term liabilities decreased by $1,917,009 or 14.34% during the current fiscal year. An increase of $261,081 in the claims liability and $67,549 in the other post-employment benefits (OPEB) liability were offset by decreases in the capital lease, compensated absence and unfunded pension liabilities. 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 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 6 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. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on how cash and other financial assets can readily be converted to available resources and the balances left at year-end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the County’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains several individual governmental funds organized according to their type (special revenue, permanent, debt service and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the Road Fund, the Mental Health Services Act Fund, and the Realignment Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The County adopts an annual appropriated budget for its General Fund, special revenue, permanent, debt service and capital projects funds. A budgetary comparison schedule has been provided for the General Fund and each major special revenue fund to demonstrate compliance with the budget. Proprietary Funds The County maintains one of two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 7 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. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County’s progress in funding its OPEB obligation, information about the County’s proportionate share of the net pension liability and pension contributions, and also the budgetary comparison schedules for the General Fund and each major special revenue fund. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary of Net Position As of June 30, (in thousands) Governmental Activities Business-Type Activities Total 2015 2014 2015 2014 2015 2014 Assets: Current and other assets 28,956 $ 26,509 $ 31 $ 82 $ 28,987 $ 26,591 $ Capital assets, net 17,009 17,109 96 19 17,105 17,128 Total assets 45,965 43,618 127 101 46,092 43,719 Deferred Outflows 1,050 - 3 - 1,053 - Liabilities: Current and other liabilities 1,060 1,187 71 122 1,131 1,309 Long-term liabilities 11,420 3,144 28 - 11,448 3,144 Total liabilities 12,480 4,331 99 122 12,579 4,453 Deferred Inflows 2,135 - 9 - 2,144 - Net Position: Net invetment in capital assets 15,862 15,895 96 19 15,958 15,914 Restricted net position 19,726 17,378 - - 19,726 17,378 Unrestricted net position (3,188) 6,014 (74) (40) (3,262) 5,974 Total net position 32,400 $ 39,287 $ 22 $ (21) $ 32,422 $ 39,266 $ 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 $32.4 million at the close of the most recent fiscal year, decreasing $6.8 million, or 17.4% during the year. The largest portion of the County’s net position is restricted net position representing resources that are subject to external restrictions on how they may be used. During the fiscal year, restricted net position increased $2.3 million, or 13.5%. More than 50% of the increase is the accumulation of resources in the MHSA and Realignment funds. The remainder of the increase is derived from 54 less significant governmental funds which are reported as nonmajor. 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 $9.2 million primarily because of the implementation of GASB 68 to report the County’s net pension liability of $8 million. 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 positive net position despite the inclusion of the $28,335 net pension liability attributable to business-type activities. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 9 The following table shows the changes in net position for governmental and business-type activities. Changes in Net Position Year ended June 30, 2015 (in thousands) Governmental Activities Business-Type Activities Total 2015 2014 2015 2014 2015 2014 Revenues: Program revenues: Charges for services 2,220 $ 1,962 $ 7 $ 7 $ 2,227 $ 1,969 $ Operating grants and contributions 8,265 8,030 62 59 8,327 8,089 Capital grants and contributions 310 145 91 - 401 145 General revenues: Property taxes 4,928 4,915 - - 4,928 4,915 Sales taxes 335 229 - - 335 229 Other taxes 534 510 - - 534 510 Unrestricted investment earnings 77 68 - 1 77 69 Non-program grant revenues 155 168 - - 155 168 Total revenues 16,824 16,027 160 67 16,984 16,094 Expenses: General government 3,846 3,326 - - 3,846 3,326 Public protection 4,656 5,641 - - 4,656 5,641 Public ways and facilities 1,638 2,067 - - 1,638 2,067 Health and sanitation 2,367 2,493 - - 2,367 2,493 Public assistance 1,640 1,629 - - 1,640 1,629 Education 308 314 - - 308 314 Recreation 80 79 - - 80 79 Interest on long-term debt 45 47 - - 45 47 Alpine County Transit - - 83 74 83 74 Total expenses 14,580 15,596 83 74 14,663 15,670 Change in net position 2,244 431 77 2,321 424 Net position at beginning of year 39,287 38,860 (21) (14) 39,266 38,846 Restatements (9,131) (34) - (9,165) Net position at end of the year 32,400 $ 39,287 $ 22 $ (21) $ 32,422 $ 39,266 $ ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 10 Expenses and Program Revenues – Governmental Activities Year ended June 30, 2015 (in thousands) Revenues by Source – Governmental Activities Year ended June 30, 2015 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Revenues Expenses Property taxes 29.30% Other taxes 5.16% Interest earnings 0.46% Grants not restricted to specific programs 0.92% Charges for services 13.19% Operating grants and contributions 49.12% Capital grants and contributions 1.84% Revenues ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 11 Analysis of Revenues The County’s revenues increased by $797,022 or Significant changes from last fiscal year are summarized below:  Mental Health Services Act (MHSA) funding increased $450,000 from last year. This funding derived from a 1% income tax imposed on personal income in excess of $1 million is distributed to the County upon approval of our planned activities in each of six different components.  The State’s Courthouse Construction fund distributed $207,000 of accumulated fines. This funding was used to pay for a major renovation of the County’s historical courthouse facility.  The County accepted $115,842 of environmental public benefit funds from the Great Basin Unified Air Pollution Control District. These funds were allocated to the woodstove replacement program.  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.  SB 678 funding distributed by the State for the probation department increased by $122,661. This statute provides funding to support evidenced-based practices and supervision performed by our Probation Department.  Federal funds used for substance abuse services decreased $141,905. The current year funding was reduced to more closely match ongoing spending levels and minimize the return of funding to its source. Tax revenues (property taxes, sales taxes, transient occupancy taxes) were flat. Current secured property tax collections were up 2.7% from the prior year but delinquent secured property tax collections were 50% less. Changes in the General Fund’s property tax receivable were positive as it fell by about 7% from $377,757 at June 30, 2014 to $351,237 at June 30, 2015. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 12 Expenses by Function/Program Year ended June 30, 2015 Analysis of Expenses The County’s expenses decreased by $1,006,961, or 6.4%. Significant changes from last fiscal year are summarized below:  Salary costs decrease $236,779. Although the County awarded 2% increases (cost of living adjustments), vacancies resulting from attrition and retirements produced cost savings in excess of costs associated with new hires.  Overtime costs, incurred primarily by Sheriff Deputies, were $40,300 more than the prior year. One half of the increase was the result of safety personnel who were compensated for their time assisting other agencies in fighting California’s wild land fires.  Certain employee benefits including health insurance and retirement contributions were $53,850 less mostly due to vacancies and retirements. This is true despite premium increases and higher retirement contribution rates.  MHSA program costs were $221,000 more than last year. Some new programs were initiated in this fiscal year. Other programs started in previous years were expanded. Also, the MHSA program added 2.5 more staff positions.  In some years, the County is required to return previous years funding. In this fiscal year, the County return significantly less prior year funding compared to last year’s $190,000  Miscellaneous professional services were $135,000 less.  Fuel costs were $37,000 less than the prior year. Business-type activities The County operates only one business-type activity, the Alpine County Transit Service. Despite restating the beginning net position to include the activity’s share of the County’s net pension liability, Transit closed General government 26.23% Public protection 31.75% Public ways and facilities 11.17% Health and sanitation 16.14% Public assistance 11.18% Education 2.10% Recreation and culture 0.55% Interest on long‐ term debt 0.30% Alpine Transit Service 0.57% Expenses ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 13 the year with positive net position. This is mostly attributable to the recognition of capital grants used to purchase an eight passenger, 21 foot transit bus. The revenues are included in net position while the asset purchase is capitalized. Operating revenues for the year was about $3,000 more than last year while expenses were $9,000 more, mostly attributable to increased 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, 2015, the County’s governmental funds reported combined ending fund balances of $27,073,393, an increase of $2,664,357 in comparison with the prior year. The components of fund balance are as follows, and with the exception of nonspendable fund balance, are available for appropriation at any time:  Nonspendable fund balance, $1,718,265, consists of amounts that are not spendable in form or are legally or contractually required to remain intact. The largest component of this balance is the deposit of $1,149,532 held by Trindel, the County’s insurance claims processor. Nonspendable fund balance also includes $400,000 representing the corpus portion of the County’s one permanent fund.  Restricted fund balance, $19,069,816, consists of amounts with constraints externally imposed by creditors, grantors, laws, regulations and enabling legislation. While these amount are available for appropriation at any time, the nature of the expenditures are constrained by external providers. Significant components of this balance include: o Mental Health Services Act - $6,402,470 o Realignment funding - $5,646,490 o Restricted to road maintenance and improvement - $1,703,603 o County Service Area No. 1 - $699,636 o AB443 Enhancing Law Enforcement Activities - $656,286  Committed fund balance, $1,106,621, 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, $2,805,723, 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 $1,140,063 anticipated for funding next fiscal year’s General Fund shortfall in revenues, $425,000 for funding activities struggling with shrinking revenues, $513,848 set aside for unfunded other postemployment liabilities, $358,082 intended to pay the County’s MOU with the Courts and also any future facility improvements to the Courthouse building and $278,725 set aside for capital replacement and on-going capital projects. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 14  Unassigned fund balance, $2,372,968 represents the residual classification for the General Fund netted against deficit balances in other governmental funds. Included in this balance is $1 million which the County has set aside as a general reserve to provide funding in case of emergencies. General Fund The General Fund is the primary operating fund of the County which accounts for core functions that include: administration, finance, assessor, clerk, district attorney, probation and sheriff. Approximately 82%, or $5,425,476, of the General Fund’s fund balance is available to meet the County’s current and future needs. With the approval of the Board of Supervisors, County management can earmark a portion of fund balance to a particular function, project or activity, and can also earmark it for purposes beyond the current year, within the constraints applied to the various categories of fund balance. With the exception of the nonspendable portion, fund balances are available for appropriation at any time. During the year, unassigned fund balance in the General Fund increased by $1,658,725, or 197% over last year’s balance. One significant change was the reclassification of the County’s $1 million general reserve from assigned to unassigned. This was done to comply with the requirements of GASB Statement No. 54 which prescribes reporting standards for the components of fund 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 87% of total General Fund expenditures and spendable fund balance is approximately 72%. Both measures are more favorable when compared to the prior year (78% and 62.6%, respectively for the prior year). This generally is because this year’s operations produced a surplus (revenues in excess of expenditures) that was 44% higher than last year’s surplus. Below is a chart showing General Fund surplus (deficit) for the past five years. $(600,000) $(400,000) $(200,000) $200,000 $400,000 $600,000 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Axis Title Surplus (Deficit) ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 15 Other Governmental Funds The Road Fund completed the year with a small decrease in fund balance of nearly $18,000. Needed maintenance projects have been delayed so as to minimize operating deficits resulting from lower revenues caused by falling gas prices and more fuel efficient cars. This status quo strategy will continue as long as necessary until a much needed legislative fix from the State is enacted. The Mental Health Services Act fund experienced an increase in fund balance of $394,513. This fund is funded with revenues generated from the passage of Proposition 63. The resources are used to support County mental health programs. Although funding allocations received from the State increased substantially this year, some components of this fund’s activities which are funded by this revenue stream progressed slower than anticipated or were delayed to subsequent years. The capital facility component included in the County’s MHSA three-year plan is set aside to finance a new Behavior Health facility in the near future. The Realignment Fund realized an increase in fund balance of $1,035,847. The increase is the current year’s surplus which was 20% higher than last year. Realignment revenues are used to pay for operational funding gaps in programs that include behavioral health, public health, social services and post release community supervision, net of the funding from other dedicated sources. As compared with the prior year, the total fund balances of the remaining governmental funds increased 30%, or $1,511,734. A majority of the increase is the STPUD Mitigation fund balance of $1,016,723. This fund was a major fund in last year’s financial statements but with recent Board decisions to use this funding in the County’s government center project, fund balance was significantly less and it was reclassified as non-major this year and included with the other governmental funds. 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 $133,838, or 1.6% from the original budget adopted in September 2014. Most of the increase resulted from unanticipated mutual aid fire reimbursements. Total appropriations increased by $259,753, or 2.8%, and this increase was the result of added positions and vendor costs that increased greater than expected. Actual revenues exceeded the amount budgeted by $858,634, or Most of this excess is the State’s payment of the County’s share of FY 2013’s sales tax in lieu and property tax in lieu, revenues resulting from the State’s triple flip maneuver and representing amounts that could not have been anticipated during the budget process. Actual expenditures were less than budgeted appropriations by $1,033,880, or 10.9% of final budgeted appropriations. Differences between the final budget and actual amounts are mostly the result of cost savings but also include delays experienced when scheduled projects funded by the general fund did not occur as anticipated. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 16 CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2015 totaled $17.1 million. Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads and bridges. The total net decrease (including the effect of depreciation) in the County’s capital assets for the current fiscal year was $23,453. Major capital asset additions during the current fiscal year included:  Alpine County Government Administration building - $3,412,367  Courthouse remodel - $462,709  Microwave communication system - $193,371  Mobile radios, receivers and repeaters - $217,962  Vehicles - $211,129  Public works equipment - $127,387  Archives building remodel - $93,787  Handicapped ADA compliant chair lift for courthouse - $92,749  8 passenger, wheelchair equipped transit bus - $91,004 At June 30, 2015, the County wrote off $348,614 of construction in progress costs, all of which were for costs which did not qualify for capitalization. Additional information on the County’s capital assets can be found in Note 4 to the basic financial statements. Debt Administration At the end of the current fiscal year, the County had total long-term liabilities outstanding of $11,448,837, a decrease of $1,917,009 from the prior year after restatement to include the beginning balance of the net pension and OPEB liabilities. A comparison of each type of liability and its balance, after restatement, from last year to this year, along with a reason for the change is as follows: 2015 2014 Change Capital leases payable 1,147,175 $ 1,214,556 $ (67,381) $ scheduled payment Other postemployment benefits 1,077,181 1,009,632 67,549 pay-as-you-go funded Net pension liability 8,082,775 10,221,745 (2,138,970) contributions and other adjustments Compensated absences 432,846 472,134 (39,288) net paid absences Liability for claims cost 708,860 447,779 261,081 increased anticipated claims 11,448,837 $ 13,365,846 $ (1,917,009) $ Additional information on the County’s long-term liabilities can be found in Note 5 to the basic financial statements. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2015 17 REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Alpine County Finance Department at P.O. Box 266, Markleeville, California 96120. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Discrete Statement of Net Position Component Unit June 30, 2015 Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 25,966,911 $ 32,054 $ 25,998,965 $ 277,426 $ Accounts receivable 70,801 - 70,801 - Taxes receivable 384,273 - 384,273 - Due from other governments 1,189,131 - 1,189,131 68,225 Interest receivable 25,691 26 25,717 - Prepaid expense 28,731 - 28,731 - Deposits 1,149,532 - 1,149,532 - Inventories 140,002 - 140,002 - Interfund balances 786 (786) - - Capital assets: Nondepreciable 1,314,253 - 1,314,253 - Depreciable, net 15,694,727 95,852 15,790,579 - Total Assets 45,964,838 127,146 46,091,984 345,651 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 1,050,177 3,121 1,053,298 - LIABILITIES Accounts payable 657,103 41 657,144 197 Accrued salaries and benefits 255,540 661 256,201 - Accrued interest payable 3,585 - 3,585 - Unearned revenue 143,551 70,526 214,077 - Long-term liabilities: Due within one year: Compensated absences 216,423 - 216,423 6,720 Capital leases 69,932 - 69,932 - Estimated liability for claims costs 708,860 - 708,860 - Due after one year: Compensated absences 216,423 - 216,423 - Capital leases 1,077,243 - 1,077,243 - Other post-employment benefits 1,077,181 - 1,077,181 - Net pension liability 8,054,440 28,335 8,082,775 - Total Liabilities 12,480,281 99,563 12,579,844 6,917 DEFERRED INFLOWS OF RESOURCES Pension adjustments 2,134,564 8,620 2,143,184 - NET POSITION Net investment in capital assets 15,861,805 95,852 15,957,657 - Restricted, including nonexpendable amounts of $400,000 19,726,665 - 19,726,665 338,734 Unrestricted (3,188,300) (73,768) (3,262,068) - Total Net Position 32,400,170 $ 22,084 $ 32,422,254 $ 338,734 $ See accompanying notes to the basic financial statements. 18 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2015 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: General government 3,846,205 $ 911,775 $ 35,000 $ - $ Public protection 4,656,270 692,889 1,691,264 310,471 Public ways and facilities 1,637,586 329,592 1,367,755 - Health and sanitation 2,367,167 255,890 3,200,653 - Public assistance 1,640,069 19,639 1,952,196 - Education 308,498 8,588 18,054 - Recreation and culture 79,990 1,262 - - Interest on long-term debt 44,705 - - - Total Governmental Activities 14,580,490 2,219,635 8,264,922 310,471 Business-Type Activities Alpine Transit Service 83,180 7,046 61,967 91,004 Total Primary Government 14,663,670 $ 2,226,681 $ 8,326,889 $ 401,475 $ Component Unit: Alpine County Children and and Families Commission 180,299 $ - $ 275,022 $ - $ GENERAL REVENUES AND TRANSFERS Taxes: Property taxes Sales and use taxes Transient occupancy taxes Other taxes Grants and other governmental revenues not restricted to specific programs Unrestricted investment earnings Total General Revenues CHANGES IN NET POSITION Net position, beginning of year, as restated NET POSITION, END OF YEAR See the accompanying notes to the basic financial statements. 19 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Discrete Primary Government Component Unit Alpine County Business- Children Governmental Type and Families Activities Activities Total Commission FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: (2,899,430) $ - $ (2,899,430) $ General government (1,961,646) - (1,961,646) Public protection 59,761 - 59,761 Public ways and facilities 1,089,376 - 1,089,376 Health and sanitation 331,766 - 331,766 Public assistance (281,856) - (281,856) Education (78,728) - (78,728) Recreation and culture (44,705) - (44,705) Interest on long-term debt (3,785,462) - (3,785,462) Total Governmental Activities Business-Type Activities - 76,837 76,837 Alpine Transit Service (3,785,462) 76,837 (3,708,625) Total Primary Government Component Unit: Alpine County Children and 94,723 $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 4,928,537 - 4,928,537 - Property taxes 334,606 - 334,606 - Sales and use taxes 507,209 - 507,209 - Transient occupancy taxes 26,835 - 26,835 - Other taxes Grants and other governmental revenues 155,204 - 155,204 - not restricted to specific programs 77,450 105 77,555 957 Unrestricted investment earnings 6,029,841 105 6,029,946 957 Total General Revenues 2,244,379 76,942 2,321,321 95,680 CHANGES IN NET POSITION 30,155,791 (54,858) 30,100,933 243,054 Net position, beginning of year, as restated 32,400,170 $ 22,084 $ 32,422,254 $ 338,734 $ NET POSITION, END OF YEAR ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2015 Mental General Road Health Realignment Fund Fund Services Act Fund ASSETS Cash and investments 5,477,242 $ 1,827,590 $ 6,314,164 $ 5,600,941 $ Accounts receivable 13,298 34,946 1,427 - Taxes receivable 362,937 - - - Due from other governments 239,231 1,531 177,831 186,823 Interest receivable 4,406 1,359 4,557 3,990 Prepaid expenses 25,791 1,035 716 - Deposits 1,149,532 - - - Inventories - 140,002 - - Due from other funds 175,608 42,011 - - Total Assets 7,448,045 $ 2,048,474 $ 6,498,695 $ 5,791,754 $ LIABILITIES Accounts payable 194,066 $ 5,108 $ 52,199 $ - $ Accrued salaries and benefits 172,383 15,416 20,442 - Due to other funds 41,344 4,298 22,868 145,264 Unearned revenues - 143,551 - - Total Liabilities 407,793 168,373 95,509 145,264 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 439,453 35,461 - - FUND BALANCES Nonspendable 1,175,323 141,037 716 - Restricted 292,671 1,703,603 6,402,470 5,646,490 Committed - - - - Assigned 2,631,729 - - - Unassigned 2,501,076 - - - Total Fund Balances 6,600,799 1,844,640 6,403,186 5,646,490 Total Liabilities, Deferred Inflows of Resources and Fund Balances 7,448,045 $ 2,048,474 $ 6,498,695 $ 5,791,754 $ See the accompany notes to the basic financial statements. 20 ---PAGE BREAK--- Other Governmental Total ASSETS 6,746,974 $ 25,966,911 $ Cash and investments 21,130 70,801 Accounts receivable 21,336 384,273 Taxes receivable 590,290 1,195,706 Due from other governments 4,804 19,116 Interest receivable 1,189 28,731 Prepaid expenses - 1,149,532 Deposits - 140,002 Inventories 182,154 399,773 Due from other funds 7,567,877 $ 29,354,845 $ Total Assets LIABILITIES 405,730 $ 657,103 $ Accounts payable 47,299 255,540 Accrued salaries and benefits 185,213 398,987 Due to other funds - 143,551 Unearned revenues 638,242 1,455,181 Total Liabilities DEFERRED INFLOWS OF RESOURCES 351,357 826,271 Unavailable revenues FUND BALANCES 401,189 1,718,265 Nonspendable 5,024,582 19,069,816 Restricted 1,106,621 1,106,621 Committed 173,994 2,805,723 Assigned (128,108) 2,372,968 Unassigned 6,578,278 27,073,393 Total Fund Balances Total Liabilities, Deferred Inflows 7,567,877 $ 29,354,845 $ 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, 2015 Fund balance - total governmental funds 27,073,393 $ 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 61,558,501 $ Less: accumulated depreciation (44,549,521) 17,008,980 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 826,271 Deferred outflows of resources in governmental activities are not financial resources and, therefore, are not reported in the governmental funds 1,050,177 Deferred inflows of resources in governmental activities does not require the use of financial resources and, therefore, are not reported in the governmental funds (2,134,564) 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 (708,860) Capital leases (1,147,175) Compensated absences (432,846) Other post-employment benefits (1,077,181) Net pension liability (8,054,440) Accrued interest payable (3,585) Net position of governmental activities 32,400,170 $ 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, 2015 Mental General Road Health Realignment Fund Fund Services Act Fund REVENUES Taxes 6,031,716 $ - $ - $ - $ Licenses and permits 35,204 1,295 - - Fines, forfeitures and penalties 212,878 910 - - Use of money and property 45,982 6,026 19,442 15,806 Intergovernmental 907,832 1,043,419 1,577,783 1,644,391 Charges for services 520,333 261,310 - - Other revenues 17,507 9,562 547 - Total Revenues 7,771,452 1,322,522 1,597,772 1,660,197 EXPENDITURES Current: General government 2,298,277 - - - Public protection 4,128,415 - - 457 Public ways and facilities 35,430 1,334,778 - - Health and sanitation 117,193 - 1,184,254 - Public assistance 498,238 - - - Education 300,216 - - - Recreation and cultural services 33,308 - - - Capital outlay 142,221 - - - Debt service: Principal - - - - Interest and issuance cost - - - - Total Expenditures 7,553,298 1,334,778 1,184,254 457 Excess (Deficiency) of Revenues Over (Under) Expenditures 218,154 (12,256) 413,518 1,659,740 OTHER FINANCING SOURCES (USES) Sale of assets 5,650 - - - Transfers in 900,357 27,387 - - Transfers out (587,550) (33,052) (19,005) (623,893) Total Other Financing Sources and (Uses) 318,457 (5,665) (19,005) (623,893) NET CHANGES IN FUND BALANCES 536,611 (17,921) 394,513 1,035,847 Fund Balances, Beginning of Year 6,064,188 1,862,561 6,008,673 4,610,643 FUND BALANCES, END OF YEAR 6,600,799 $ 1,844,640 $ 6,403,186 $ 5,646,490 $ See the accompanying notes to the basic financial statements. 22 ---PAGE BREAK--- Other Governmental Total REVENUES 71,431 $ 6,103,147 $ Taxes 59,608 96,107 Licenses and permits 207,991 421,779 Fines, forfeitures and penalties 40,432 127,688 Use of money and property 3,595,440 8,768,865 Intergovernmental 946,418 1,728,061 Charges for services 9,009 36,625 Other revenues 4,930,329 17,282,272 Total Revenues EXPENDITURES Current: 90,285 2,388,562 General government 613,397 4,742,269 Public protection 362,422 1,732,630 Public ways and facilities 1,327,543 2,628,990 Health and sanitation 1,189,709 1,687,947 Public assistance - 300,216 Education - 33,308 Recreation and cultural services 855,126 997,347 Capital outlay Debt service: 67,382 67,382 Principal 44,914 44,914 Interest and issuance cost 4,550,778 14,623,565 Total Expenditures Excess (Deficiency) of Revenues Over 379,551 2,658,707 (Under) Expenditures OTHER FINANCING SOURCES (USES) - 5,650 Sale of assets 1,454,470 2,382,214 Transfers in (1,118,714) (2,382,214) Transfers out 335,756 5,650 Total Other Financing Sources and (Uses) 715,307 2,664,357 NET CHANGES IN FUND BALANCES 5,862,971 24,409,036 Fund Balances, Beginning of Year 6,578,278 $ 27,073,393 $ 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, 2015 Net change to fund balance - total governmental funds 2,664,357 $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Expenditures for general capital assets, infrastructure, and other related capital asset adjustments 1,394,796 The net effect of various miscellaneous transactions involving capital assets (348,614) Less: current year depreciation (1,146,574) (100,392) 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 932,367 Unavailable revenues are reported as deferred inflows of resources in the governmental funds, but are recognized as revenues in the statement of activities (90,280) 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 67,381 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 210 Change in compensated absences 39,288 Change in estimated liability for claims costs (261,081) Change in other post-employment benefits (104,962) (326,545) 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 (902,509) Change in net position of governmental activities 2,244,379 $ 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, 2015 ASSETS Current Assets: Cash and investments 32,054 $ Interest receivable 26 Due from other funds 622 Total Current Assets 32,702 Non-Current Assets: Equipment, net of accumulated depreciation 95,852 Total Assets 128,554 DEFERRED OUTFLOWS OF RESOURCES Pension adjustments 3,121 LIABILITIES Current Liabilities: Accounts payable 41 Accrued salaries and benefits 661 Due to other funds 1,408 Unearned revenue 70,526 Total Current Liabilities 72,636 Noncurrent Liabilities: Net pension liability 28,335 Total Liabilities 100,971 DEFERRED INFLOWS OF RESOURCES Pension adjustments 8,620 NET POSITION Net investment in capital assets 95,852 Unrestricted (73,768) Total Net Position 22,084 $ 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, 2015 OPERATING REVENUES Passenger fares 7,046 $ OPERATING EXPENSES Salaries and benefits 42,192 Adminstrative 18,278 Fuel and vehicle maintenance 7,514 Insurance 1,131 Depreciation 14,065 Total Operating Expenses 83,180 OPERATING INCOME (LOSS) (76,134) NON-OPERATING REVENUES (EXPENSES) Federal Transit Administration operating grant 33,783 Local Transportation Fund allocation 28,184 Interest 105 Total Non-Operating Revenues (Expenses) 62,072 Income before Capital Contributions (14,062) CAPITAL CONTRIBUTIONS Federal Transit Admininstration capital grant 35,661 Prop 1B proceeds 44,646 State Transit Assistance funds 10,697 Total Capital Contributions 91,004 CHANGE IN NET POSITION 76,942 Net Position, Beginning of Year, as Restated (54,858) NET POSITION, END OF YEAR 22,084 $ 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, 2015 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 6,424 $ Cash paid to employees (42,369) Cash paid to suppliers for goods and services (27,258) Net Cash Used by Operating Activities (63,203) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments 126 Net Cash Provided by Investment Activities 126 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 66,786 Net Cash Provided by Noncapital Financing Activities 66,786 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contribution 35,661 Acquisition of capital assets (91,004) Net Cash Used in Capital and Related Financing Activities (55,343) NET DECREASE IN CASH AND CASH EQUIVALENTS (51,634) Cash and Cash Equivalents, Beginning of Year 83,688 CASH AND CASH EQUIVALENTS, END OF YEAR 32,054 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (76,134) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 14,065 Changes in assets and liabilities: Interfund receivables (622) Deferred outflows (3,121) Accounts payable (116) Accrued salaries and benefits (353) Interfund payables (219) Deferred inflows 8,620 Net pension liability (5,323) NET CASH USED BY OPERATING ACTIVITIES (63,203) $ See the accompanying notes to the basic financial statements. 26 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2015 Investment Agency Trust Funds ASSETS Cash and investments 7,109,147 $ 273,075 $ Interest receivable 5,072 18,585 Total Assets 7,114,219 291,660 LIABILITIES Apportionments payable - 24,350 Accounts payable - 9,103 Agency obligations - 258,207 Total Liabilities - 291,660 NET POSITION Net position held in trust for investment pool participants 7,114,219 - Total Net Position 7,114,219 $ - $ 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, 2015 Investment Trust ADDITIONS Contributions to investment pool 4,593,070 $ Investment earnings 20,773 Total Additions 4,613,843 DEDUCTIONS Distributions from pooled investment accounts 3,834,640 Total Deductions 3,834,640 CHANGE IN NET POSITION 779,203 Net Position, Beginning of Year 6,335,016 NET POSITION, END OF YEAR 7,114,219 $ 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, 2015 30 Note 1: Summary of Significant Accounting Policies The accounting methods adopted by the County conform to accounting principles generally accepted in the United States of America as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the County’s accounting policies are described below. A. Description of the Reporting Entity The County is a legal subdivision of the State of California whereby it can exercise the powers specified by the constitution and statutes of the State of California. The County operates under an Administrator-Board of Supervisors form of government with legislative and executive control held by an elected five member Board of Supervisors. Major services provided by the County to its citizens include: public protection, public ways and facilities, health and sanitation, public assistance, education, culture and recreation and general services. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable under the criteria set by Governmental Accounting Standards Board (GASB) Statement No. 61, “Financial Reporting Entity: Omnibus”. Reporting for component units on the County’s financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Blended component units are an extension of the County and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the basic financial statements to emphasize they are legally separate from the County. Each component unit has a June 30th year-end. Blended Component Units. The County Service Area #1 and Alpine County Local Transportation Commission are districts governed by the County Board of Supervisors. The component unit’s governing body is substantially the same as the primary government; hence, these units are presented by blending them with the primary government. Financial statements for the Alpine County Local Transportation Commission can be obtained at P.O. Box 266, Markleeville, CA 96120. Discretely Presented Component Units. The nine members of the Alpine County Children and Families Commission are appointed by the Alpine County Board of Supervisors and may be removed at any time without cause. Because the County Board of Supervisors can impose their will on the Commission, the Commission is considered a component unit of the County. The Commission is discretely presented because the two boards are not substantially the same and their operations are separate. Separately issued financial statements may be obtained by contacting the Commission at 100 Foothill Road, Suite D-3, Markleeville, CA 96120. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 31 B. Basis of Presentation Government-Wide Financial Statements The statement of net position and statement of activities display information about the primary government (the County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties. The statement of activities presents a comparison between program expenses and program revenues for each segment of the business-type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements The fund financial statements provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. Proprietary fund operating revenues include charges for the goods or services provided by the fund as part of its principal activity and result from exchange transactions. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include the costs of providing services and delivering goods. All other expenses not meeting this definition are reported as nonoperating expenses. The County reports the following major governmental funds:  The General Fund is the County’s primary operating fund and is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. For the County, the General Fund includes such activities as public protection, public ways and facilities, health and sanitation, public assistance, education, recreation services and general services. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 32  The Road Fund was established to provide for maintenance and construction of roadways. Revenues consist primarily of the County’s share of state highway use tax and are supplemented by federal and state funds.  The Mental Health Services Act Fund was established to account for Proposition 63 passed in 2004 to expand and further develop mental health services in the County.  The Realignment Fund was established to account for State realigned revenues generated from sales taxes and vehicle license fees that are restricted to expenditure for specific social, health, mental health and public safety programs. The County reports its only enterprise fund described below as a major fund:  The Alpine Transit Service Fund provides public transit services in the County. The County reports the following fiduciary fund types:  The Investment Trust Fund accounts for the assets of legally separate entities, which invest in the County Treasurer’s investment pool. These entities include one school district and several special districts governed by local boards. These funds represent the assets, primarily cash and investments, and the related liability of the County to disburse these monies on demand.  The Agency Funds account for assets held by the County as an agent for various individuals or other local governments. These funds are custodial in nature and do not involve measurement of results or operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. C. Basis of Accounting The government-wide, proprietary and investment trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 33 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, 2015, to support the value of pool shares. 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 34 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, 2015, 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, 2015 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, 2015, the County had deferred outflows of resources related to pensions. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County had deferred inflows of resources consisting of unavailable revenues reported under the modified accrual basis of accounting in the governmental funds balance sheet and related to pensions in its proprietary and government-wide statements. The governmental funds report unavailable revenues from property taxes, intergovernmental, and other sources as appropriate. The amounts are deferred and recognized as revenues in the period the amounts become available. K. Pensions In government-wide financial statements, pensions are recognized and disclosed using the accrual basis of accounting regardless of the amount recognized as pension expenditures on the modified accrual basis of accounting. The County recognizes a net pension liability for each qualified pension plan in which it participates, which represents the excess of the total pension liability over the fiduciary net position of the qualified pension plan, measured as of the County’s fiscal year-end or the County’s proportionate share thereof in the case of a cost-sharing multiple-employer plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 36 Changes in the net pension liability during the period are recorded as pension expense, or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change, in the period incurred. Those changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience are amortized over the weighted average remaining service life of all participants including retirees, in the respective qualified pension plan and recorded as a component of pension expense beginning with the period in which they arose. Projected earnings on qualified pension plan investments are recognized as a component of pension expense. Differences between projected and actual investment earnings are reported as deferred inflows of resources or deferred outflows of resources and amortized as a component of pension expense on a closed basis over a five-year period beginning with the period in which the difference occurred. L. Property Tax Revenue Property taxes, including tax rates, are regulated by the State and are administered locally by the County. The County is responsible for assessing, collecting and distributing property taxes in accordance with state law. Property taxes attach as an enforceable lien at January 1. Taxes are levied on July 1 and are payable in two installments, December 10 and April 10. All general property taxes are allocated to the various taxing entities per the legislation implementing Article XIII of the California Constitution (commonly referred to as Proposition 13). General property taxes are based either on a flat one percent rate applied to the 1975/1976 full value of the property or on one percent of the sales price of the property on sales transactions and construction after the 1975/1976 valuation. Taxable values on properties (exclusive of increases related to sales and construction) can rise at a maximum rate of two percent per year. The method of allocation used by the County is subject to review by the State of California. The County recognizes property tax revenues in the period for which the taxes are levied. M. Interfund Transactions Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” the current portion of interfund loans) or “advances to/from other funds” the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance amount in the applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 37 treated as transfers. Transfers between governmental or business-type activities are netted as part of the reconciliation to the government-wide presentation. N. Net Position The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows:  Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.  Restricted Net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.  Unrestricted Net position – This category represents net position of the County, not restricted for any project or other purpose. When both restricted and unrestricted net position is available, the County considers restricted net position to have been depleted before unrestricted net position is applied. N. 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 38 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. O. 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. P. Implementation of Governmental Accounting Standards Board (GASB) Statements In June 2012, the GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB Statement No. 27. The objective of this statement is to improve accounting and financial reporting by state and local governmental pensions. In November 2013, the GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date to address an issue in Statement No. 68 concerning provisions related to certain pension contributions made to defined benefit pension plans prior to the implementation of that Statement by employers and nonemployer contributing entities. As of July 1, 2014, the County implemented these Statements and restated the beginning net position of the government-wide statements by $9,202,343 ($9,168,685 governmental activities and $33,658 business-type activities) and recognized $1,019,402 of beginning deferred outflows of resources for its pension contributions to establish a beginning net pension liability of $10,221,745. The County has insufficient prior year data which makes it impractical to restate the amounts of all applicable deferred outflows of resources, net pension liability and deferred inflows of resources related to pensions. Therefore, the County has elected to report the implementation of these Statements as a cumulative effect of an accounting change in the financial statements for the year ended June 30, 2015. Q. Future Pronouncements The County is currently analyzing its accounting and financial reporting practices to determine the potential impact on the financial statements of the following recently issued GASB Statements: ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 39  In February 2015, the GASB issued GASB Statement No. 72, Fair Value Measurement and Application. This Statement is intended to improve accounting and financial reporting for state and local governments’ investments by enhancing the comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. The requirements of this Statement are effective for the County’s fiscal year ending June 30, 2016.  In June 2014, the GASB issued GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (OPEB), improves the accounting and financial reporting by state and local governments for OPEB plans, similar to the accounting and reporting changes enacted with GASB Statement No. 68 for Pension plans. This Statement replaces the requirements of Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions and Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. GASB Statement No. 75 is effective for the County’s fiscal year ending June 30, 2018.  In June 2014, the GASB issued GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, which clarifies the hierarchy of generally accepted accounting principles (GAAP), and reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within the scope of authoritative GAAP. GASB Statement No. 76 is effective for the County’s fiscal year ending June 30, 2016. Note 2: Cash and Investments At June 30, 2015, total County cash and investments were as follows: Cash: Cash on hand 404 $ Imprest accounts 355 Deposits 747,195 Total Cash 747,954 Investments: In Treasurer's Pool 32,633,233 Total Cash and Investments 33,381,187 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 40 Total cash and investments at June 30, 2015 were presented on the County’s financial statements as follows: Primary government 25,998,965 $ Investment trust fund 7,109,147 Agency funds 273,075 Total Cash and Investments 33,381,187 $ The investment pool includes both voluntary and involuntary participation from external entities. The State of California statutes require certain districts and other governmental entities to maintain their cash surplus with the County Treasurer. Investments The County’s cash and investments are invested by the County Treasurer. The Treasury Oversight Committee has oversight for all monies deposited into the Treasury Pool. Such amounts are invested in accordance with investment policy guidelines established by the County Treasurer and reviewed and approved by the Board of Supervisors. The objectives of the policy are, in order of priority, safety of principal, liquidity and yield. The policy addresses the soundness of financial institutions in which the County will deposit funds, types of investment instruments as permitted by California Government Code and the percentage of the portfolio that may be invested in certain instruments. The table below identifies the investment types that are authorized for the County by the California Government Code or the County’s investment policy, where more restrictive. The table also identifies certain provisions of the County’s investment policy that address interest rate risk, credit risk and concentration risk. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio in One Issuer Local Agency Bonds 1 Year 5% None U.S. Treasury Obligations 5 Years None None U.S. Agency Obligations 5 Years None None Collateralized Bank Deposits 1 Year 10% None Money Market Mutual Funds N/A 15% 10% Notes Issued by Corporations Under FDIC, TLGP 5 Years None None Local Agency Investment Fund (LAIF) N/A None None ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 41 At June 30, 2015, the County had the following investments: Weighted Fair Average Maturity Interest Rates Maturities Par Value (Days) Investments in Investment Pool: U.S. Treasuries 0.250% - 1.75% 7/15/15 - 5/31/18 1,845,000 $ 1,839,806 $ 529 Federal Agency Obligations 0.430% - 2.5% 8/17/15 - 9/12/19 4,680,000 4,687,941 682 Money Market Mutual Funds Variable On Demand 6,569 6,569 0 LAIF Variable On Demand 26,098,917 26,098,917 0 32,630,486 $ 32,633,233 $ 128 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. 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, 2015, the County’s portfolio WAM associated with the investment pool was 128 days. Credit Risk – Generally, custodial credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the County’s policy to purchase investments meeting ratings requirements established by the California Government Code. Concentration of Credit Risk – State law limits investments in money market mutual funds, collateralized bank deposits and local agency bonds to no more than 15%, 10% and respectively, of the investment pool at the time of purchase. State law also limits investments in any one money market mutual fund to no more than 10% of the investment pool at the time of purchase. The County’s investment policy adheres to these limitations established by California Government Code. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 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, 2015. Credit Rating % Investments In Pool Moody's/S&P/Finch Holdings Federal Agency Obligations Aaa/AA+/AAA 14.36% U.S. Treasuries Aaa/AA+/AAA 5.64% Money Market Mutual Funds Aaa/AAA/AAA 0.02% LAIF Not Rated 79.98% 100.00% Custodial Credit Risk – The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. At year end, the County’s investment pool had no securities exposed to custodial credit risk. Investment in the Local Agency Investment Fund The County Treasurer’s Pool maintains an investment in the State of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the State in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer’s Office. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California Government Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board has oversight responsibility for LAIF. This Board consists of five members as designated by State Statute. At June 30, 2015, the County’s investment position in LAIF was $26,098,917, which approximates fair value and is the same as the value of the pool shares which is determined on an amortized cost basis. Withdrawals from LAIF are done on a dollar to dollar basis. The total amount invested by all public agencies in PMIA on that day was $69.7 billion. Of that amount, 2.08% was invested in structured notes and asset-backed securities with the remaining 97.92% invested in other non-derivative financial products. The average maturity of PMIA investments was 239 days as of June 30, 2015. 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, 2015, involuntary participants of the County’s investment pool totaled $7,050,966. 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 43 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, 2015: Statement of Net Position Net position held for pool participants 33,381,187 $ Equity of internal pool participants 26,272,040 $ Equity of external pool participants 7,109,147 Total Net Position 33,381,187 $ Statement of Changes in Net Position Investment earnings 126,302 $ Investment expenses (27,108) Net contributions by pool participants 3,267,337 Decrease in Net Position 3,366,531 Net Position at July 1, 2014 30,014,656 Net Position at June 30, 2015 33,381,187 $ Note 3: Interfund Transactions Interfund Receivables and Payables Interfund receivables and payables result from the time lag between the dates that transactions are recorded in the accounting system and the date payments between funds are made. Interfund receivables and payables also result from short-term loans to participants in the County’s Investment Pool whose investment accounts are deficit. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 44 The composition of interfund balances classified as due to / from other funds as of June 30, 2015 is as follows: Receivable Fund Payable Fund Amount General Fund Road Fund 4,298 $ Realignment Fund 31,134 Alpine County Government Center - Transit 713 Other Governmental Funds 139,463 175,608 Road Fund General Fund 12,275 Mental Health Services Act 659 Transit 695 Other Governmental Funds 28,382 42,011 Other Governmental Funds General Fund 29,069 Mental Health Services Act 22,004 Realignment Fund 114,130 Other Governmental Funds 16,951 182,154 Transit Mental Health Services Act 205 Other Governmental Funds 417 622 400,395 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 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, 2015: Transfers Between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Other Governmental Funds 587,550 $ Road Fund General Fund 33,052 Mental Health Services Act Other Governmental Funds 19,005 Realignment Fund General Fund 104,844 Other Governmental Funds 519,049 623,893 Other Governmental Funds General Fund 762,461 Road Fund 27,387 Other Governmental Funds 328,866 1,118,714 2,382,214 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 46 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2015 was as follows: Balance Balance July 1, 2014 Additions Retirements Transfers June 30, 2015 Governmental Activities: Total capital assets, not being depreciated Land 1,220,599 $ - $ - $ - $ 1,220,599 $ Construction in progress 3,977,852 769,317 (348,614) (4,304,901) 93,654 Total capital assets, not being depreciated 5,198,451 769,317 (348,614) (4,304,901) 1,314,253 Total capital assets, being depreciated Structures and improvements 10,917,720 - - 4,085,931 15,003,651 Equipment 10,586,370 625,479 (885,138) 218,970 10,545,681 Infrastructure 34,694,917 - - - 34,694,917 Total capital assets, being depreciated 56,199,007 625,479 (885,138) 4,304,901 60,244,249 Less accumulated depreciation for: Structures and improvements (3,530,423) (438,065) - - (3,968,488) Equipment (7,089,607) (681,102) 885,138 - (6,885,571) Infrastructure (33,668,056) (27,407) - - (33,695,463) Total accumulated depreciation (44,288,086) (1,146,574) 885,138 - (44,549,522) Total capital assets, being depreciated, net 11,910,921 (521,095) - 4,304,901 15,694,727 Governmental activities capital assets, net 17,109,372 $ 248,222 $ (348,614) $ - $ 17,008,980 $ Business-type Activities: Total capital assets, being depreciated Equipment 52,955 $ 91,004 $ - $ - $ 143,959 $ Total capital assets, being depreciated 52,955 91,004 - - 143,959 Less accumulated depreciation for: Equipment (34,042) (14,065) - - (48,107) Total accumulated depreciation (34,042) (14,065) - - (48,107) Business-type capital assets, net 18,913 $ 76,939 $ - $ - $ 95,852 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 47 Depreciation expense was charged to governmental functions as follows: General government 204,873 $ Public protection 574,724 Public ways and facilities 213,408 Health and sanitation 16,812 Public assistance 87,869 Education 3,312 Recreation and cultural services 45,576 Total depreciation expense - governmental activities 1,146,574 $ Depreciation expense was charged to the business-type activities as follows: Alpine Transit Service 14,065 $ Note 5: Long-Term Liabilities The following is a summary of long-term liabilities activity for the fiscal year ended June 30, 2015: Balance Balance Amounts Due July 1, 2014 Additions Retirements June 30, 2015 Within One Year Governmental Activities: Capital leases payable 1,214,556 $ - $ (67,381) $ 1,147,175 $ 69,932 $ Other postemployment benefits 1,009,632 553,968 (486,419) 1,077,181 - Net pension liability 10,185,181 2,008,426 (4,139,167) 8,054,440 - Compensated absences 472,134 196,779 (236,067) 432,846 216,423 Liability for claims costs 447,779 835,369 (574,288) 708,860 708,860 13,329,282 $ 3,594,542 $ (5,503,322) $ 11,420,502 $ 995,215 $ Business-type Activities: Net pension liability 36,564 $ 8,831 $ (17,060) $ 28,335 $ - $ 36,564 $ 8,831 $ (17,060) $ 28,335 $ - $ The Debt Service fund is responsible for the payments on the County’s capital lease. Liabilities for other postemployment benefits and compensated absences are generally liquidated by the General Fund and special revenue funds. Payments toward the net pension liability are generally liquidated by the General Fund, the special revenue funds and the Transit fund. Claims are paid by the General Fund. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 48 Note 6: Capital Lease The County leases certain facilities under a lease obligation accounted for as capital leases where the related facilities will become property of the County when all terms of the lease agreement is met. The following is a summary of the County’s capital lease agreement as of June 30, 2015: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2015 Alpine County Government Center 3.75% 1,147,175 $ Included in the governmental activities are the following capital asset amounts under capital leases: Accumulated Cost Depreciation Book Value Administration building 200,760 $ 2,510 $ 198,250 $ Community Dev. building 943,884 35,395 908,489 Sheriff secure storage facility 155,356 5,826 149,530 1,300,000 $ 43,731 $ 1,256,269 $ As of June 30, 2015, future minimum lease payments under capital leases were as follows: Year Ending June 30: 2016 112,296 $ 2017 112,296 2018 112,296 2019 112,296 2020 112,296 2021-2025 561,478 2026-2028 336,887 Total Future Minimum Lease Payments 1,459,845 Less: Interest (312,670) Present Value of Minimum Lease Payments 1,147,175 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 49 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2015 are as follows: Mental General Road Health Realignment Other Fund Fund Services Act Fund Governmental Total Nonspendable: Permanent funds - $ - $ - $ - $ 400,000 $ 400,000 $ Deposits 1,149,532 - - - - 1,149,532 Prepaid expenses 25,791 1,035 716 - 1,189 28,731 Inventories - 140,002 - - - 140,002 Total Nonspendable 1,175,323 141,037 716 - 401,189 1,718,265 Restricted: Public protection - - - 536,851 2,053,980 2,590,831 Public ways and facilties - 1,703,603 - - 134,426 1,838,029 Health and sanitation - - 6,402,470 2,456,404 1,518,305 10,377,179 Public assistance - - - 2,653,235 419,781 3,073,016 Capital projects - - - - 69,406 69,406 CSA - - - - 699,636 699,636 Other 292,671 - - - 129,048 421,719 Total Restricted 292,671 1,703,603 6,402,470 5,646,490 5,024,582 19,069,816 Committed: Capital projects - - - - 1,106,621 1,106,621 Total Committed - - - - 1,106,621 1,106,621 Assigned: Critical services 425,000 - - - - 425,000 Sheriff capital replacement 157,690 - - - - 157,690 Capital projects - - - - 121,035 121,035 Courthouse 358,082 - - - - 358,082 Post-employment benefits 513,848 - - - - 513,848 Eliminate projected 2015-16 budgetary deficit 1,140,063 - - - - 1,140,063 Other 37,046 - - - 52,959 90,005 Total Assigned 2,631,729 - - - 173,994 2,805,723 Unassigned 2,501,076 - - - (128,108) 2,372,968 Total Fund Balances 6,600,799 $ 1,844,640 $ 6,403,186 $ 5,646,490 $ 6,578,278 $ 27,073,393 $ During this year’s budget process, the County Board of Supervisors re-established a general reserve of $1,000,000 in the General Fund. This general reserve is subject to the provisions of Government Code sections 29085, 29086 and 29127, whereby appropriation from the general reserve may be used only in cases of certain emergency situations. Because this stabilization arrangement does not meet the criteria described in GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, to be reported within the restricted or committed fund balance categories, it has been classified as unassigned in these statements. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 50 Net position from governmental activities as of June 30, 2015, was restricted for the following purposes: Capital projects 69,406 $ Public protection 2,621,240 Public ways and facilities 2,000,785 Health and sanitation 10,542,209 Public assistance 3,198,491 County Service Area #1 765,486 Other: Trust for Public Land-nonexpendable 400,000 Trust for Public Land-expendable 52,959 Administrative Services 76,089 19,726,665 $ Deficit fund balances / net position as of June 30, 2015, were as follows: Governmental Funds: Alpine County Government Center Capital project 57,870 $ Markleeville Pipeline Prop. 50 Grant Capital project 1,990 Accumulated Capital Outlay Capital project 11,429 County Road Improvement Grant fund 22,718 SNC Prop. 84 Grant Grant fund 4,458 State OES Grants Grant fund 6,806 COPS Grant Grant fund 3,733 District Attorney Victim Witness Grant Grant fund 19,104 Fund deficits in capital project funds are caused by a delay in contributions earmarked to cover expenditures. Fund deficits in the grant funds result from the deferral of revenues collected more than sixty days after the end of the fiscal year. The collection of receivables in the next fiscal year is expected to eliminate the deficit balances. Restatements of Fund Balance / Net Position Adjustments resulting from errors or a change to comply with provisions of the accounting standards are treated as adjustments to prior periods. Accordingly, the County reports these changes as restatements of beginning fund balance / net position. In the current year, the County reported a prior period adjustment because of a change in an accounting principle to report prior period costs resulting from the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 51 Restatements as of the beginning of the fiscal year were also made to correct the beginning balance of the postemployment benefits liability so that the liability agreed to the amount determined by the actuarial valuation. Adjustments for the plan’s implicit subsidy were inadvertently excluded in the prior year. The impact of the restatements on the fund balances / net position as previously reported is presented below: Fund Statements Government-Wide Statements Proprietary Governmental Business-Type Funds - Activities Activities Alpine Transit Serv Fund balance / net position, June 30, 2014, as previously reported 39,287,063 $ (21,200) $ (21,200) $ Restatements and corrections: Other postemployment benefits - effect of implied subsidy 37,413 - - Beginning balance of net pension liability (10,185,181) (36,564) (36,564) Deferred outflow of resoures adjustment for pension contributions paid prior to measurement date 1,016,496 2,906 2,906 Total restatements and corrections (9,131,272) (33,658) (33,658) Fund balances / net position, July 1, 2014, as restated 30,155,791 $ (54,858) $ (54,858) $ Note 8: County Employees Retirement Plan (Defined Benefit Pension Plan) General Information about the Pension Plans Plan Descriptions – All qualified permanent and probationary employees of Alpine County and Alpine County Superior Court are eligible to participate in the Country’s separate Safety (Sheriff) and Miscellaneous (all others) cost sharing multiple employer defined benefit pension plans, Employee Pension Plans, administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating member employers. Benefit provisions under the Plans are established by State statute and County resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Effective January 1, 2013, the County added retirement tiers for the Miscellaneous Plan and Safety Plan for new employees as required under the Public Employee Pension Reform Act (PEPRA). New employees hired on or after January 1, 2013 will be subject to new, lower pension formulas, caps on pensionable income levels and new definitions of pensionable income. In addition, new employees will be required to contribute half of the total normal cost of the pension benefit unless impaired by an existing Memorandum ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 52 of Understanding. The cumulative effect of these PEPRA changes will ultimately reduce the County’s retirement costs. As of the valuation date there were no Safety PEPRA employees. Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2015 are summarized as follows: Provisions and Benefits Miscellaneous 1st Tier Miscellaneous PEPRA Safety 1st Tier Hire date Prior to January 1, 2013 After December 31, 2012 Prior to January 1, 2013 Benefit formula 2% at 55 2% @ 62 3% @ 50 Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments for life for life for life Retirement age 50-55 50-62 50 benefits, as a % of eligible compensation 1.426% to 2.418% 1% to 2.5% 3% Required employee contribution rates 7.0% 6.5% 9.0% Required employer contribution rates 17.038% 6.7% 37.781% Employer paid member contribution rates 2% to 7% depending on length of service(1) None None 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 53 For the year ended June 30, 2015, the contributions recognized as part of pension expense for each Plan were as follows: Miscelleanous 1st Tier Miscellaneous PEPRA Safety 1st Tier Contributions - employer 551,155 $ 18,671 $ 395,394 $ Contributions - employee (paid by employer) 54,181 - - Pension Liabilities, Pension Expenses and Deferred Outflows/inflows of Resources Related to Pensions As of June 30, 2015, the County reported net pension liabilities for its proportionate shares of the net position liability of each Plan as follows: Proportionate Share of Net Pension Liability Miscellaneous - 1st Tier 5,406,384 $ Miscellaneous - PEPRA 792 Safety - 1st Tier 2,675,599 8,082,775 $ 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, 2014, 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, 2013, rolled forward to June 30, 2014, using standard update procedures. The County’s proportion of the net pension liability was based on a projection of the County’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The County’s proportionate share of the net pension liability for each Plan as of June 30, 2013 and 2014 was as follows: Miscellaneous 1st Tier Miscellaneous PEPRA Safety 1st Tier Proportion ‐ June 30, 2013 0.19986% 0.00004% 0.06650% Proportion ‐ June 30, 2014 0.21619% 0.00003% 0.07077% Change ‐ Increase (Decrease) 0.01633% ‐0.00001% 0.00427% ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 54 For the year ended June 30, 2015, the County recognized pension expense of $905,789. At June 30, 2015, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 935,471 $ - $ Net differences between actual and allocated employer contributions 115,020 (8,273) Adjustments due to differences in proportions 2,807 (78,520) Net differences between projected and actual earnings on plan investments - (2,056,391) 1,053,298 $ (2,143,184) $ Of the total reported as deferred outflows of resources, $935,471 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, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources to pensions will be recognized as pension expense as follows: Year Ended June 30 2016 (503,014) $ 2017 (503,014) 2018 (505,232) 2019 (514,097) (2,025,357) $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 55 Actuarial Assumptions The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the following actuarial assumptions for all Plans: Valuation date June 30, 2013 Measurement date June 30, 2014 Actuarial cost method Entry-age Normal Cost Method Actuarial Assumptions: Discount rate 7.5% Inflation 2.75% Payroll growth 3.0% Projected salary increase Varies by entry age and service depending on age, service and type of employment Investment rate of return 7.5%, net of pension plan investment and administrative expenses, including inflation Mortality Derived using CalPERS’ membership data for all funds The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013 valuation were based on the results of January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website. Discount Rate The discount rate used to measure the total pension liability was 7.5% 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 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.50 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section. According to Paragraph 30 of Statement No. 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a higher Total Pension Liability and Net Pension Liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management (ALM) review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 56 will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue using a discount rate net of administrative expenses for GASB Statement No. 67 and 68 calculations through at least the 2017-18 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such time as we change our methodology. 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. Asset Class New Strategic Allocation Real Return Years 1-10(1) Real Return Years 11+(2) Global Equity 47.00% 5.25% 5.71% Global Fixed Income 19.00% 0.99% 2.43% Inflation Sensitive 6.00% 0.45% 3.36% Private Equity 12.00% 6.83% 6.95% Real Estate 11.00% 4.50% 5.13% Infrastructure and Forestland 3.00% 4.50% 5.09% Liquidity 2.00% -0.55% -1.05% 100.00% An expected inflation of 2.5% used for this period. An expected inflation of 3.0% used for this period. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 57 Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the County’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Miscellaneous 1st Tier Miscellaneous PEPRA Safety 1st Tier Net pension liability if 1% decrease 8,882,589 $ 1,411 $ 4,253,997 $ Net pension liability if current discount rate 5,406,384 792 2,675,599 Net pension liability if 1% increase 2,521,463 278 1,375,067 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 At June 30, 2015, the County reported a payable of $52,665 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2015. Note 9: Other Post-Employment Benefits (OPEB) Plan Description The County provides retiree healthcare benefits to qualifying employees retiring directly from the County. Benefits include medical, dental and vision plan coverage and the benefit level is determined by date of hire and length of service. Benefits are provided through the County of Alpine Retiree Healthcare plan, a single-employer defined benefit healthcare plan administered by the County. Retirees not yet eligible for Medicare supplement coverage receive the same coverage and the same cost sharing formula as active employees until age 65. After becoming eligible for Medicare, retirees and/or their dependents who wish to retain coverage must enroll in an available plan offered by AARP. The County pays a specific dollar amount toward the cost of retiree coverage and, depending on the date of employment, may also pay a portion of the coverage for the retiree’s spouse or eligible dependents. Funding Policy The contribution requirements of the plan members and the County are established and may be amended by the County. The County is not pre-funding the plan. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 58 Annual OPEB Cost and Net OPEB Obligation The County’s OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC). The ARC is an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The County ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize the unfunded actuarial liability over a period of 30 years. The following table shows the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and the resulting net OPEB obligation. Annual required contribution 559,133 $ Interest on prior year net OPEB obligation 38,889 Amortization of prior year net OPEB obligation (44,054) Annual OPEB Cost 553,968 Payments on behalf of retirees (408,413) Estimated implicit subsidy for current year (40,593) Increase in net OPEB obligation 104,962 Net OPEB obligation, beginning of year, restated 972,219 Net OPEB obligation, end of year 1,077,181 $ The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and prior two years are as follows: Net Percentage Net Year Pension Annual of Annual Pension Ended Obligation OPEB Annual OPEB Cost Obligation June 30: Beginning of Year(1) Cost Contributions(1) Contributed End of Year 2013 791,899 $ 502,038 $ 395,830 $ 78.84% 898,107 $ 2014 898,107 533,617 459,505 86.11% 972,219 2015 972,219 553,968 449,006 81.05% 1,077,181 Restated to include effect of prior period adjustment accounting for the fiscal year 2013-2014 implicit rate adjustment. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 59 Funded Status and Funding Progress The funded status of the plan as of January 1, 2014, the plan’s most recent actuarial valuation date, was as follows: Actuarial accrued liability (AAL) 7,996,472 $ Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 7,996,472 $ Funded ratio (actuarial value of plan assets / AAL) 0.00% Covered payroll (active plan members) 4,708,313 $ UAAL as a percentage of covered payroll 169.84% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the basic financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2014 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 4.0 percent investment rate of return (net of administrative expenses). Salary increases were estimated at 3.25 percent per year. Information on mortality, turnover and retirement rates was based on CalPERS public agency data. Healthcare costs were forecasted to increase by 8.5 percent in 2016, then by ½ percent less each year until 2023 at which time increases would level off at 5 percent per year thereafter. The actuarial value of assets is equal to the market value. The UAAL is being amortized as a level percentage of projected payrolls over 30 years on a closed basis. The remaining amortization period at January 1, 2014 was 26 years. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 60 Note 10: Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County participates in a joint powers agreement established in 1980 to provide coverage for workers’ compensation and general liability exposures and to pay for the administration of the program. The Joint Powers Agreement established for its members the Trindel Insurance Fund (Trindel). The agreement for the formation of Trindel provides that the system will be self-sustaining through member premiums and will reinsure through a commercial company for claims in excess of self-insured retention. Trindel retains a self-insured retention of $125,000 for workers’ compensation and $100,000 for general liability. Above the self-insured retention, excess insurance coverage is up to a limit of $25 million for both programs. Trindel Insurance Fund is classified as a claims-servicing or account pool, wherein the County retains the risk of loss and is considered self-insured with regard to liability coverage for general and property liability, workers compensation and medical malpractice. The County currently reports all of its risk management activities in its General Fund. Premiums due to Trindel are reported when incurred. Settled claims resulting from risks have not exceeded the commercial insurance coverage in any of the past fiscal years and there has not been a significant reduction in coverage in fiscal year 2014-2015. The County holds a deposit with Trindel Insurance from which claims are paid. At June 30, 2015, the balance of the deposit was $1,149,532. Each member of Trindel pays an annual premium to the insurance system which is evaluated each year based on the number of personnel, estimated payroll and an experience factor. Changes in the balance of claims liability during the fiscal years ended June 30, 2015 and 2014 were as follows: 2015 2014 Unpaid claims, beginning of year 447,779 $ 378,189 $ Current year claims (including incurred but not reported) 835,369 451,284 Claims payments and changes in estimates (574,288) (381,694) Unpaid claims, end of the year 708,860 $ 447,779 $ Note 11: Commitments, Contingencies and Other Information Claims and Judgments The County has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2015 61 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, 2015, the County had no ongoing construction commitments. Subsequent Events Management has evaluated events subsequent to June 30, 2015 through March 16, 2016, the date on which the financial statements were available for issuance. Management has determined no subsequent events requiring disclosure have occurred. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2015 62 Schedule of Funding Progress – Retiree Healthcare Plan Entry Age Normal Actuarial Unfunded Annual UAAL as Valuation Accrued Value of (Overfunded) Funded Covered a % of Date Liability Assets Liability Ratio Payroll Payroll January 1, 2008 8,364,946 $ - $ 8,364,946 $ 0.00% 4,380,489 $ 190.96% January 1, 2011 7,146,425 - 7,146,425 0.00% 3,809,470 187.60% January 1, 2014 7,919,738 - 7,919,738 0.00% 4,560,109 173.67% ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2015 63 County Pension Plan Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2015 Last 10 Years* 2015 Miscellaneous Plan 1st Tier Proportion of the net pension liability 0.08688% Proportionate share of the net pension liability 5,406,384 $ Covered employee payroll 3,466,681 $ Proportionate share of the net pension liability as a percentage of covered employee payroll 155.95% Plan's fiduciary net position 20,796,946 $ Plan's fiduciary net position as a percentage of the total pension liability 79.37% Miscellaneous Plan PEPRA Proportion of the net pension liability 0.00001% Proportionate share of the net pension liability 792 $ Covered employee payroll 154,402 $ Proportionate share of the net pension liability as a percentage of covered employee payroll 0.51% Plan's fiduciary net position 20,796,946 $ Plan's fiduciary net position as a percentage of the total pension liability 83.02% Safety Plan 1st Tier Proportion of the net pension liability 0.04300% Proportionate share of the net pension liability 2,675,599 $ Covered employee payroll 1,178,026 $ Proportionate share of the net pension liability as a percentage of covered employee payroll 227.13% Plan's fiduciary net position 20,796,946 $ Plan's fiduciary net position as a percentage of the total pension liability 77.29% * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Historical information is required only for measurement periods for which GASB 68 is applicable; therefore, only one year is shown. ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2015 64 County Pension Plan Schedule of Contributions For the Year Ended June 30, 2015 Last 10 Years* 2015 Miscellaneous Plan 1st Tier Contractually required contribution (actuarially determined) 564,153 $ Contributions in relation to the actuarially determined contributions (564,153) Contribution deficiency (excess) - $ Covered employee payroll 3,466,681 $ Contributions as apercentage of covered employee payroll 16.27% Miscellaneous Plan PEPRA Contractually required contribution (actuarially determined) 19,134 $ Contributions in relation to the actuarially determined contributions (19,134) Contribution deficiency (excess) - $ Covered employee payroll 154,402 $ Contributions as apercentage of covered employee payroll 12.39% Safety Plan 1st Tier Contractually required contribution (actuarially determined) 395,787 $ Contributions in relation to the actuarially determined contributions (395,787) Contribution deficiency (excess) - $ Covered employee payroll 1,178,026 $ Contributions as apercentage of covered employee payroll 33.60% * The County implemented GASB Statement No. 68 for fiscal year ended June 30, 2015. Historical information is required only for measurement periods for which GASB 68 is applicable; therefore, only one year is shown. ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2015 65 Notes to County Pension Plans For the Year Ended June 30, 2015 Note 1: Schedule of Proportionate Share of the Net Pension Liability There were no changes in assumptions or benefits in calculating the net pension liability. Note 2: Schedule of Contributions Methods and assumptions used to determine the contribution rates for the Miscellaneous Plan 1st Tier were as follows: Valuation Date June 30, 2013 Actuarial cost method Entry Age Normal Amortization method Level percentage of payroll, closed Remaining amortization period 19 years as of the valuation date Asset valuation method 15-year smoothed market Inflation 2.75% Payroll growth 3.0% Salary increases 3.3% to 14.2% depending on age, service, and type of employment Investment rate of return 7.50%, net of pension plan investment expense, including inflation Retirement age 55 years Methods and assumptions used to determine the contribution rates for the Miscellaneous Plan PEPRA were as follows: Valuation Date June 30, 2013 Actuarial cost method Entry Age Normal Amortization method Level percentage of payroll, closed Remaining amortization period 19 years as of the valuation date Asset valuation method 15-year smoothed market Inflation 2.75% Payroll growth 3.0% Salary increases 3.3% to 14.2% depending on age, service, and type of employment Investment rate of return 7.75%, net of pension plan investment expense, including inflation Retirement age 62 years ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2015 66 Methods and assumptions used to determine the contribution rates for the Safety Plan 1st Tier were as follows: Valuation Date June 30, 2013 Actuarial cost method Entry Age Normal Amortization method Level percentage of payroll, closed Remaining amortization period 19 years as of the valuation date Asset valuation method 15-year smoothed market Inflation 2.75% Payroll growth 3.0% Salary increases 3.3% to 14.2% depending on age, service, and type of employment Investment rate of return 7.75%, net of pension plan investment expense, including inflation Retirement age 50 years ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule General Fund Variance with For the Year Ended June 30, 2015 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 6,064,188 $ 6,064,188 $ 6,064,188 $ - $ RESOURCES (inflows): Taxes 5,056,000 5,095,183 6,031,716 936,533 Licenses and permits 34,420 34,420 35,204 784 Fines, forfeitures and penalties 32,930 32,930 51,994 19,064 Use of money and property 39,992 39,992 43,167 3,175 Intergovernmental 943,671 926,613 907,832 (18,781) Charges for services 871,985 946,873 1,102,261 155,388 Other revenues 4,350 4,350 17,507 13,157 Transfers from other funds 1,114,218 1,151,043 900,357 (250,686) Amounts Available for Appropriation 14,161,754 14,295,592 15,154,226 858,634 CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 432,374 440,679 420,105 20,574 Personnel 105,774 139,995 105,631 34,364 Auditor-Controller 372,557 380,037 346,668 33,369 OMB 87 Central Services 153,827 176,827 141,737 35,090 General Central Services 33,600 33,600 26,353 7,247 Information Technology 149,004 192,304 154,842 37,462 Treasurer-Tax Collector 217,499 227,611 216,668 10,943 Assessor 320,264 327,750 301,501 26,249 Elections 25,437 25,437 20,381 5,056 Buildings & Grounds 511,816 508,816 461,333 47,483 BV Buildings & Grounds - 38,050 35,430 2,620 Risk Management 52,388 58,467 44,417 14,050 Retiree Benefits 402,400 402,400 351,923 50,477 Legal Counsel 191,300 191,300 181,778 9,522 Total General Government 2,968,240 3,143,273 2,808,767 334,506 Public protection: County Clerk 260,092 260,092 229,591 30,501 Recorder 94,274 95,073 93,623 1,450 Surveyor / Engineer 36,000 36,000 23,400 12,600 Grand Jury 9,812 9,812 6,462 3,350 District Attorney 284,794 284,794 251,551 33,243 Public Defender 70,000 70,000 36,998 33,002 Sheriff / Coroner 2,667,895 2,700,135 2,506,037 194,098 Jail 55,000 55,000 36,848 18,152 Sheriff Grants 595,339 643,226 493,397 149,829 Communications 180,100 172,099 157,238 14,861 continued 67 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund Variance with For the Year Ended June 30, 2015 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Probation 123,298 123,298 92,004 31,294 Bear Valley Fire Department 50,340 58,340 49,503 8,837 Kirkwood Fire Department 12,500 12,500 - 12,500 East Slope Fire / EMS 220,402 229,357 218,385 10,972 Agricultural Commission 13,775 13,775 13,727 48 Planning Department 151,070 151,070 131,046 20,024 Local Agency Formation 3,080 3,080 769 2,311 Total Public Protection 4,827,771 4,917,651 4,340,579 577,072 Health and sanitation: County Emergency Services 103,585 103,585 74,845 28,740 Kirkwood EMS 15,338 15,338 2,072 13,266 Bear Valley EMS 13,149 13,149 6,193 6,956 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 12,684 12,684 10,797 1,887 Total Health and Sanitation 166,620 166,620 115,771 50,849 Public assistance: Community Development 460,448 459,248 428,684 30,564 Social Services Assistance 56,365 56,365 69,554 (13,189) General Relief 3,750 3,750 - 3,750 Total Public Assistance 520,563 519,363 498,238 21,125 Education: Superintendent of Schools 58,919 58,919 57,370 1,549 Library 260,210 256,250 242,846 13,404 Total Education 319,129 315,169 300,216 14,953 Recreation and cultural services: Museum 34,141 34,141 33,308 833 Transfers to other funds: General Contribution 375,569 375,569 341,027 34,542 Total Charges to Appropriations 9,212,033 9,471,786 8,437,906 1,033,880 BUDGETARY FUND BALANCE, JUNE 30 4,949,721 $ 4,823,806 $ 6,716,320 $ 1,892,514 $ continued 68 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2015 Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 15,154,226 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (6,064,188) Revenues from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes 168,449 A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes (586,678) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (900,357) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 7,771,452 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 8,437,906 $ 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 81,284 The County does not include the deposit held by the claims administrator for budgetary purposes 65,728 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 (586,678) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (444,942) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 7,553,298 $ 69 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund Variance with For the Year Ended June 30, 2015 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 1,862,561 $ 1,862,561 $ 1,862,561 $ - $ RESOURCES (inflows): Licenses and permits 600 600 1,295 695 Fines, forfeitures and penalties 500 500 910 410 Use of money and property 3,600 3,600 6,026 2,426 Intergovernmental 1,046,624 1,046,624 1,043,419 (3,205) Charges for services 420,000 420,000 363,850 (56,150) Other revenues - - 9,562 9,562 Transfers from other funds - 27,387 27,387 - Amounts Available for Appropriation 3,333,885 3,361,272 3,315,010 (46,262) CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 2,036,827 2,029,164 1,437,318 591,846 Transfers to other funds - 35,050 33,052 1,998 Total Charges to Appropriations 2,036,827 2,064,214 1,470,370 593,844 BUDGETARY FUND BALANCE, JUNE 30 1,297,058 $ 1,297,058 $ 1,844,640 $ 547,582 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 3,315,010 $ 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 (1,862,561) Equipment rental revenue is generated intrafund and reported as a budgetary resource but eliminated for financial reporting purposes and not considered current-year revenue (102,540) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (27,387) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 1,322,522 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,470,370 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 (102,540) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (33,052) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,334,778 $ 70 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act Variance with For the Year Ended June 30, 2015 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 6,008,673 $ 6,008,673 $ 6,008,673 $ - $ RESOURCES (inflows): Use of money and property - - 19,442 19,442 Intergovernmental 1,629,656 1,629,656 1,577,783 (51,873) Other revenues - - 547 547 Amounts Available for Appropriation 7,638,329 7,638,329 7,606,445 (31,884) CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,440,756 1,452,816 1,184,254 268,562 Transfers out to other funds 441,820 441,820 19,005 422,815 Total Charges to Appropriations 1,882,576 1,894,636 1,203,259 691,377 BUDGETARY FUND BALANCE, JUNE 30 5,755,753 $ 5,743,693 $ 6,403,186 $ 659,493 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 7,606,445 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (6,008,673) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,597,772 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,203,259 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (19,005) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,184,254 $ 71 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund Variance with For the Year Ended June 30, 2015 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 4,610,643 $ 4,610,643 $ 4,610,643 $ - $ RESOURCES (inflows): Use of money and property - - 15,806 15,806 Intergovernmental 1,520,300 1,520,300 1,644,391 124,091 Transfer in 64,000 64,000 - (64,000) Amounts Available for Appropriation 6,194,943 6,194,943 6,270,840 75,897 CHARGES TO APPROPRIATIONS (outflows) Public protection 15,000 15,000 457 14,543 Transfers out to other funds 913,348 913,348 623,893 289,455 Total Charges to Appropriations 928,348 928,348 624,350 303,998 BUDGETARY FUND BALANCE, JUNE 30 5,266,595 $ 5,266,595 $ 5,646,490 $ 379,895 $ 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 6,270,840 $ 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 (4,610,643) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,660,197 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 624,350 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (623,893) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 457 $ 72 ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2015 73 BUDGETARY BASIS OF ACCOUNTING In accordance with the provisions of Sections 29000 and 29143, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year. A tentative budget approved no later than June 30 of each year establishes the legal authority for county spending in the following fiscal year until a final budget is adopted on or before October 2nd. Prior to adoption of the final budget, a public hearing is held to receive comments prior to adoption. From the effective date of the budget, which is adopted and controlled at the departmental level, the amounts stated therein as proposed expenditures become appropriations to the various County departments. However, the legal level of control is the fund level. The Board of Supervisors may amend the budget by resolution during the fiscal year. Department heads may, upon approval of the Treasurer- Tax Collector-Auditor Controller and the County Administrative Officer, make transfers from one object or purpose to another within the same budget unit. All other budget amendments must be approved by the County Board of Supervisors. It is the final revised budget that is presented in the required supplementary information section of this financial report. Appropriations lapse at year end. Budgets are adopted for the General Fund, all special revenue funds, permanent fund and capital projects funds. Accounting principles applied for purposes of developing data on a budgetary basis are materially the same as those used to present financial statements in conformity with GAAP, except that transfers are regarded as inflows of resources for budgetary purposes and not revenues for GAAP financial statement presentation purposes and transfers out are considered outflows of resources for budgetary purposes but not expenditures for GAAP financial statement presentation purposes. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION Combining Fund Statements ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2015 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 5,956,100 $ 452,634 $ 338,240 $ - $ 6,746,974 $ Accounts receivable 7,810 - 13,320 - 21,130 Taxes receivable 21,336 - - - 21,336 Due from other governments 571,637 - 18,653 - 590,290 Interest receivable 4,294 325 185 - 4,804 Due from other funds 134,129 - 48,025 - 182,154 Prepaid expenses 1,189 - - - 1,189 Total Assets 6,696,495 $ 452,959 $ 418,423 $ - $ 7,567,877 $ LIABILITIES Accounts payable 312,116 $ - $ 93,614 $ - $ 405,730 $ Accrued salaries and benefits 47,299 - - - 47,299 Due to other funds 78,709 - 106,504 - 185,213 Total Liabilities 438,124 - 200,118 - 638,242 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 319,384 - 31,973 - 351,357 FUND BALANCES Nonspendable 1,189 400,000 - - 401,189 Restricted 4,955,176 - 69,406 - 5,024,582 Committed 1,016,723 - 89,898 - 1,106,621 Assigned - 52,959 121,035 - 173,994 Unassigned (34,101) - (94,007) - (128,108) Total Fund Balances 5,938,987 452,959 186,332 - 6,578,278 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,696,495 $ 452,959 $ 418,423 $ - $ 7,567,877 $ 74 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2015 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 71,431 $ - $ - $ - $ 71,431 $ Licenses and permits 59,608 - - - 59,608 Fines, forfeitures and penalties 991 - 207,000 - 207,991 Use of money and property 39,359 325 748 - 40,432 Intergovernmental 3,512,735 - 82,705 - 3,595,440 Charges for services 946,418 - - - 946,418 Other revenues 9,009 - - - 9,009 Total Revenues 4,639,551 325 290,453 - 4,930,329 EXPENDITURES Current: General government 90,285 - - - 90,285 Public protection 613,397 - - - 613,397 Public ways and facilities 362,422 - - - 362,422 Health and sanitation 1,327,543 - - - 1,327,543 Public assistance 1,189,709 - - - 1,189,709 Education - - - - - Capital outlay - - 855,126 - 855,126 Debt service: Principal - - - 67,382 67,382 Interest and issuance cost - - - 44,914 44,914 Total Expenditures 3,583,356 - 855,126 112,296 4,550,778 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,056,195 325 (564,673) (112,296) 379,551 OTHER FINANCING SOURCES AND USES Transfers in 586,654 - 755,520 112,296 1,454,470 Transfers out (1,012,258) - (106,456) - (1,118,714) Total Other Financing Sources (Uses) (425,604) - 649,064 112,296 335,756 NET CHANGES IN FUND BALANCES 630,591 325 84,391 - 715,307 Fund Balances, Beginning of Year 5,308,396 452,634 101,941 - 5,862,971 FUND BALANCES, END OF YEAR 5,938,987 $ 452,959 $ 186,332 $ - $ 6,578,278 $ 75 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2015 State Public Environmental Mental Drug and Health Health Health Alcohol ASSETS Cash and investments 73,294 $ 31,449 $ 425,626 $ 511,831 $ Accounts receivable 4,554 182 - - Taxes receivable - - - - Due from other governments 51,588 5,207 13,687 - Interest receivable 41 4 290 254 Due from other funds 32,146 - - - Prepaid expenses - - 102 205 Total Assets 161,623 $ 36,842 $ 439,705 $ 512,290 $ LIABILITIES Accounts payable 2,819 $ 8,717 $ 8,794 $ 12,493 $ Accrued salaries and benefits 5,513 211 3,186 5,412 Due to other funds - - - - Total Liabilities 8,332 8,928 11,980 17,905 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 51,588 - - - FUND BALANCES Nonspendable - - 102 205 Restricted 101,703 27,914 427,623 494,180 Committed - - - - Unassigned - - - - Total Fund Balances 101,703 27,914 427,725 494,385 Total Liabilities, Deferred Inflows of Resources and Fund Balances 161,623 $ 36,842 $ 439,705 $ 512,290 $ continued 76 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 Prop 36 Social One-Stop SACPA Services Services Tobacco ASSETS Cash and investments 282,867 $ 398,576 $ 4,113 $ 98,444 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 125,352 18,809 - Interest receivable 203 308 6 80 Due from other funds - 88,603 - - Prepaid expenses - 882 - - Total Assets 283,070 $ 613,721 $ 22,928 $ 98,524 $ LIABILITIES Accounts payable - $ 67,304 $ 604 $ 989 $ Accrued salaries and benefits - 18,718 1,594 2,594 Due to other funds - 2,161 1,012 149 Total Liabilities - 88,183 3,210 3,732 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 124,593 - - FUND BALANCES Nonspendable - 882 - - Restricted 283,070 400,063 19,718 94,792 Committed - - - - Unassigned - - - - Total Fund Balances 283,070 400,945 19,718 94,792 Total Liabilities, Deferred Inflows of Resources and Fund Balances 283,070 $ 613,721 $ 22,928 $ 98,524 $ continued 77 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 Water Fish and Rights Game Building Airport ASSETS Cash and investments 5,698 $ 43,000 $ 35,643 $ 23,634 $ Accounts receivable - 57 2,765 - Taxes receivable - - - - Due from other governments - - - - Interest receivable 4 44 20 17 Due from other funds - - - - Prepaid expenses - - - - Total Assets 5,702 $ 43,101 $ 38,428 $ 23,651 $ LIABILITIES Accounts payable - $ 6,810 $ 5,081 $ - $ Accrued salaries and benefits - - 3,835 - Due to other funds - - 1,560 209 Total Liabilities - 6,810 10,476 209 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted 5,702 36,291 27,952 23,442 Committed - - - - Unassigned - - - - Total Fund Balances 5,702 36,291 27,952 23,442 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,702 $ 43,101 $ 38,428 $ 23,651 $ continued 78 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund ASSETS Cash and investments 16,677 $ 11,771 $ 113,598 $ 450,705 $ Accounts receivable - 252 - - Taxes receivable - - - - Due from other governments - 11,366 28,562 50,000 Interest receivable 12 8 89 325 Due from other funds - - - - Prepaid expenses - - - - Total Assets 16,689 $ 23,397 $ 142,249 $ 501,030 $ LIABILITIES Accounts payable - $ 197 $ 18,076 $ 2,940 $ Accrued salaries and benefits - 938 - - Due to other funds - 30,000 - - Total Liabilities - 31,135 18,076 2,940 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 11,366 - - FUND BALANCES Nonspendable - - - - Restricted 16,689 - 124,173 498,090 Committed - - - - Unassigned - (19,104) - - Total Fund Balances 16,689 (19,104) 124,173 498,090 Total Liabilities, Deferred Inflows of Resources and Fund Balances 16,689 $ 23,397 $ 142,249 $ 501,030 $ continued 79 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants ASSETS Cash and investments - $ 280,283 $ 328 $ 17,954 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 12,840 - - Interest receivable 252 - 13 Due from other funds - - - - Prepaid expenses - - - - Total Assets $ 293,375 $ 328 $ 17,967 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 3,730 - - - Total Liabilities 3,730 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 293,375 328 17,967 Committed - - - - Unassigned (3,733) - - - Total Fund Balances (3,733) 293,375 328 17,967 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 293,375 $ 328 $ 17,967 $ continued 80 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 State Law Assessor's Recorder's OES Enforcement Special Special Grants AB443 Revenue Fund Revenue Fund ASSETS Cash and investments - $ 592,997 $ 25,905 $ 81,333 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 52,168 - - Interest receivable 590 19 58 Due from other funds - 10,531 - - Prepaid expenses - - - - Total Assets $ 656,286 $ 25,924 $ 81,391 $ LIABILITIES Accounts payable - $ - $ 620 $ 38 $ Accrued salaries and benefits - - - - Due to other funds 6,801 - - - Total Liabilities 6,801 - 620 38 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Nonspendable - - - - Restricted - 656,286 25,304 81,353 Committed - - - - Unassigned (6,806) - - - Total Fund Balances (6,806) 656,286 25,304 81,353 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 656,286 $ 25,924 $ 81,391 $ continued 81 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste ASSETS Cash and investments 4,128 $ 696,417 $ 193,024 $ 31,420 $ Accounts receivable - - - - Taxes receivable - 16,636 - - Due from other governments - - - - Interest receivable 3 473 113 17 Due from other funds - - - - Prepaid expenses - - - - Total Assets 4,131 $ 713,526 $ 193,137 $ 31,437 $ LIABILITIES Accounts payable - $ 800 $ 4,268 $ 2,883 $ Accrued salaries and benefits - - 2,101 - Due to other funds - 199 - - Total Liabilities - 999 6,369 2,883 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 12,891 - - FUND BALANCES Nonspendable - - - - Restricted 4,131 699,636 186,768 28,554 Committed - - - - Unassigned - - - - Total Fund Balances 4,131 699,636 186,768 28,554 Total Liabilities, Deferred Inflows of Resources and Fund Balances 4,131 $ 713,526 $ 193,137 $ 31,437 $ continued 82 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs ASSETS Cash and investments - $ 59,588 $ 8,710 $ - $ Accounts receivable - - - - Taxes receivable - 4,700 - - Due from other governments 60,468 - 1,535 - Interest receivable 37 6 - Due from other funds 2,800 - - - Prepaid expenses - - - - Total Assets 63,262 $ 64,325 $ 10,251 $ - $ LIABILITIES Accounts payable 38,697 $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 23,548 2,800 - - Total Liabilities 62,245 2,800 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 1,535 - FUND BALANCES Nonspendable - - - - Restricted 1,017 61,525 8,716 - Committed - - - - Unassigned - - - - Total Fund Balances 1,017 61,525 8,716 - Total Liabilities, Deferred Inflows of Resources and Fund Balances 63,262 $ 64,325 $ 10,251 $ - $ continued 83 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 Title III SNC Fire Secure Rural Court Prop. 84 Protection Schools Services Grant ASSETS Cash and investments 14,589 $ 111,174 $ 28,567 $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - 6,575 Interest receivable 9 80 17 Due from other funds - - - - Prepaid expenses - - - - Total Assets 14,598 $ 111,254 $ 28,584 $ 6,574 $ LIABILITIES Accounts payable - $ 5,375 $ 28,513 $ 3,770 $ Accrued salaries and benefits - - - - Due to other funds - - - 3,070 Total Liabilities - 5,375 28,513 6,840 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 4,192 FUND BALANCES Nonspendable - - - - Restricted 14,598 105,879 71 - Committed - - - - Unassigned - - - (4,458) Total Fund Balances 14,598 105,879 71 (4,458) Total Liabilities, Deferred Inflows of Resources and Fund Balances 14,598 $ 111,254 $ 28,584 $ 6,574 $ continued 84 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 Woodstove Public Behavioral Public Replacement Health Health Safety Program Misc. Grants Misc. Grants Misc. Grants ASSETS Cash and investments 111,216 $ 127,985 $ 5,075 $ 4,948 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 102,419 - - Interest receivable 80 103 6 4 Due from other funds - 49 - - Prepaid expenses - - - - Total Assets 111,296 $ 230,556 $ 5,081 $ 4,952 $ LIABILITIES Accounts payable 225 $ 66,082 $ - $ - $ Accrued salaries and benefits - 3,197 - - Due to other funds - 3,470 - - Total Liabilities 225 72,749 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 102,419 - - FUND BALANCES Nonspendable - - - - Restricted 111,071 55,388 5,081 4,952 Committed - - - - Unassigned - - - - Total Fund Balances 111,071 55,388 5,081 4,952 Total Liabilities, Deferred Inflows of Resources and Fund Balances 111,296 $ 230,556 $ 5,081 $ 4,952 $ continued 85 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2015 Other Miscellaneous STPUD Grants Mitigation Total ASSETS Cash and investments 17,534 $ 1,015,999 $ 5,956,100 $ Accounts receivable - - 7,810 Taxes receivable - - 21,336 Due from other governments 31,061 - 571,637 Interest receivable - 724 4,294 Due from other funds - - 134,129 Prepaid expenses - - 1,189 Total Assets 48,595 $ 1,016,723 $ 6,696,495 $ LIABILITIES Accounts payable 26,021 $ - $ 312,116 $ Accrued salaries and benefits - - 47,299 Due to other funds - - 78,709 Total Liabilities 26,021 - 438,124 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 10,800 - 319,384 FUND BALANCES Nonspendable - - 1,189 Restricted 11,774 - 4,955,176 Committed - 1,016,723 1,016,723 Unassigned - - (34,101) Total Fund Balances 11,774 1,016,723 5,938,987 Total Liabilities, Deferred Inflows of Resources and Fund Balances 48,595 $ 1,016,723 $ 6,696,495 $ 86 ---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, 2015 State Public Environmental Mental Drug and Health Health Health Alcohol REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 17,389 944 1,148 Intergovernmental 80,652 33,223 401,501 340,233 Charges for services 62,301 52,603 1,404 - Other revenues 76 1,825 50 25 Total Revenues 160,418 87,649 403,899 341,406 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 334,705 102,600 171,682 328,410 Public assistance - - - - Capital outlay - - - - Total Expenditures 334,705 102,600 171,682 328,410 Excess (Deficiency) of Revenues Over (Under) Expenditures (174,287) (14,951) 232,217 12,996 OTHER FINANCING SOURCES (USES) Transfers in 178,388 45,721 - - Transfers out (45,721) (2,856) - - Total Other Financing Sources (Uses) 132,667 42,865 - - NET CHANGES IN FUND BALANCES (41,620) 27,914 232,217 12,996 Fund Balances, Beginning of Year 143,323 - 195,508 481,389 FUND BALANCES, END OF YEAR 101,703 $ 27,914 $ 427,725 $ 494,385 $ 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, 2015 Prop 36 Social One-Stop SACPA Services Services Tobacco REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 871 6,397 22 288 Intergovernmental - 752,634 65,740 160,243 Charges for services - - - - Other revenues - 7,075 - - Total Revenues 871 766,106 65,762 160,531 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - - - 146,102 Public assistance - 1,132,206 57,503 - Capital outlay - - - - Total Expenditures - 1,132,206 57,503 146,102 Excess (Deficiency) of Revenues Over (Under) Expenditures 871 (366,100) 8,259 14,429 OTHER FINANCING SOURCES (USES) Transfers in - 242,054 - - Transfers out - - - (5,855) Total Other Financing Sources (Uses) - 242,054 - (5,855) NET CHANGES IN FUND BALANCES 871 (124,046) 8,259 8,574 Fund Balances, Beginning of Year 282,199 524,991 11,459 86,218 FUND BALANCES, END OF YEAR 283,070 $ 400,945 $ 19,718 $ 94,792 $ 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, 2015 Water Fish and Rights Game Building Airport REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - 59,608 - Fines, forfeitures and penalties - 948 - - Use of money and property 18 128 58 98 Intergovernmental - - - 10,000 Charges for services - 51,756 28,976 - Other revenues - - (42) - Total Revenues 18 52,832 88,600 10,098 EXPENDITURES Current: General government - - - - Public protection - 66,062 169,826 - Public ways and facilities - - - 3,204 Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 66,062 169,826 3,204 Excess (Deficiency) of Revenues Over (Under) Expenditures 18 (13,230) (81,226) 6,894 OTHER FINANCING SOURCES (USES) Transfers in - - 89,000 - Transfers out - - - (27,387) Total Other Financing Sources (Uses) - - 89,000 (27,387) NET CHANGES IN FUND BALANCES 18 (13,230) 7,774 (20,493) Fund Balances, Beginning of Year 5,684 49,521 20,178 43,935 FUND BALANCES, END OF YEAR 5,702 $ 36,291 $ 27,952 $ 23,442 $ 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, 2015 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 55 29 373 1,175 Intergovernmental - 41,384 118,213 200,000 Charges for services - - - - Other revenues - - - - Total Revenues 55 41,413 118,586 201,175 EXPENDITURES Current: General government 2,501 - - - Public protection - 37,898 90,555 5,410 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 2,501 37,898 90,555 5,410 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,446) 3,515 28,031 195,765 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (4,300) (10,168) Total Other Financing Sources (Uses) - - (4,300) (10,168) NET CHANGES IN FUND BALANCES (2,446) 3,515 23,731 185,597 Fund Balances, Beginning of Year 19,135 (22,619) 100,442 312,493 FUND BALANCES, END OF YEAR 16,689 $ (19,104) $ 124,173 $ 498,090 $ 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, 2015 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 60 1,021 1 56 Intergovernmental - 123,060 - - Charges for services - - - - Other revenues - - - - Total Revenues 60 124,081 1 56 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 60 124,081 1 56 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (51,680) (128,266) - - Total Other Financing Sources (Uses) (51,680) (128,266) - - NET CHANGES IN FUND BALANCES (51,620) (4,185) 1 56 Fund Balances, Beginning of Year 47,887 297,560 327 17,911 FUND BALANCES, END OF YEAR (3,733) $ 293,375 $ 328 $ 17,967 $ 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, 2015 State Law OES Enforcement Assessor's Recorder's FEMA AB443 Trust Trust REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (21) 2,268 75 264 Intergovernmental - 500,000 - - Charges for services - - 3,908 3,690 Other revenues - - - - Total Revenues (21) 502,268 3,983 3,954 EXPENDITURES Current: General government - - 2,913 - Public protection - 44,078 - 20,449 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 44,078 2,913 20,449 Excess (Deficiency) of Revenues Over (Under) Expenditures (21) 458,190 1,070 (16,495) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (455,535) - - Total Other Financing Sources (Uses) - (455,535) - - NET CHANGES IN FUND BALANCES (21) 2,655 1,070 (16,495) Fund Balances, Beginning of Year (6,785) 653,631 24,234 97,848 FUND BALANCES, END OF YEAR (6,806) $ 656,286 $ 25,304 $ 81,353 $ 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, 2015 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste REVENUES Taxes - $ 11,431 $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - 43 - - Use of money and property 16 1,872 363 40 Intergovernmental - 345 - - Charges for services - 246,269 264,155 73,575 Other revenues - - - - Total Revenues 16 259,960 264,518 73,615 EXPENDITURES Current: General government - - - - Public protection 3,229 - 73,457 - Public ways and facilities - 117,760 - - Health and sanitation - - - 76,844 Public assistance - - - - Capital outlay - - - - Total Expenditures 3,229 117,760 73,457 76,844 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,213) 142,200 191,061 (3,229) OTHER FINANCING SOURCES (USES) Transfers in - 1,000 - 2,000 Transfers out - - (117,680) - Total Other Financing Sources (Uses) - 1,000 (117,680) 2,000 NET CHANGES IN FUND BALANCES (3,213) 143,200 73,381 (1,229) Fund Balances, Beginning of Year 7,344 556,436 113,387 29,783 FUND BALANCES, END OF YEAR 4,131 $ 699,636 $ 186,768 $ 28,554 $ 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, 2015 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs REVENUES Taxes - $ - $ - $ 60,000 $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (76) 84 19 - Intergovernmental 265,496 84,865 4,258 - Charges for services - - - - Other revenues - - - - Total Revenues 265,420 84,949 4,277 60,000 EXPENDITURES Current: General government - - - 60,000 Public protection - - - - Public ways and facilities 193,458 48,000 - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 193,458 48,000 - 60,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 71,962 36,949 4,277 - OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGES IN FUND BALANCES 71,962 36,949 4,277 - Fund Balances, Beginning of Year (70,945) 24,576 4,439 - FUND BALANCES, END OF YEAR 1,017 $ 61,525 $ 8,716 $ - $ continued 94 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2015 Title III SNC Fire Secure Rural Court Prop. 84 Protection Schools Services Grant REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 28 389 39 Intergovernmental - - - 2,383 Charges for services 6,318 - - - Other revenues - - - - Total Revenues 6,346 389 39 2,382 EXPENDITURES Current: General government - - - - Public protection - 29,051 28,513 6,840 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - 29,051 28,513 6,840 Excess (Deficiency) of Revenues Over (Under) Expenditures 6,346 (28,662) (28,474) (4,458) OTHER FINANCING SOURCES (USES) Transfers in - - 28,491 - Transfers out - - - - Total Other Financing Sources (Uses) - - 28,491 - NET CHANGES IN FUND BALANCES 6,346 (28,662) 17 (4,458) Fund Balances, Beginning of Year 8,252 134,541 54 - FUND BALANCES, END OF YEAR 14,598 $ 105,879 $ 71 $ (4,458) $ continued 95 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2015 Woodstove Pubic Behavioral Public Replacement Health Health Safety Program Misc. Grants Misc. Grants Misc. Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 247 375 17 16 Intergovernmental 115,842 168,488 11,066 - Charges for services - - - - Other revenues - - - - Total Revenues 116,089 168,863 11,083 16 EXPENDITURES Current: General government - - - - Public protection 5,018 - - - Public ways and facilities - - - - Health and sanitation - 156,134 11,066 - Public assistance - - - - Capital outlay - - - - Total Expenditures 5,018 156,134 11,066 - Excess (Deficiency) of Revenues Over (Under) Expenditures 111,071 12,729 17 16 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (15,514) - - Total Other Financing Sources (Uses) - (15,514) - - NET CHANGES IN FUND BALANCES 111,071 (2,785) 17 16 Fund Balances, Beginning of Year - 58,173 5,064 4,936 FUND BALANCES, END OF YEAR 111,071 $ 55,388 $ 5,081 $ 4,952 $ continued 96 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2015 Other Miscellaneous STPUD Grants Mitigation Total REVENUES Taxes - $ - $ 71,431 $ Licenses and permits - - 59,608 Fines, forfeitures and penalties - - 991 Use of money and property - 3,216 39,359 Intergovernmental 33,109 - 3,512,735 Charges for services - 151,463 946,418 Other revenues - - 9,009 Total Revenues 33,109 154,679 4,639,551 EXPENDITURES Current: General government - 24,871 90,285 Public protection 33,011 - 613,397 Public ways and facilities - - 362,422 Health and sanitation - - 1,327,543 Public assistance - - 1,189,709 Capital outlay - - - Total Expenditures 33,011 24,871 3,583,356 Excess (Deficiency) of Revenues Over (Under) Expenditures 98 129,808 1,056,195 OTHER FINANCING SOURCES (USES) Transfers in - - 586,654 Transfers out - (147,296) (1,012,258) Total Other Financing Sources (Uses) - (147,296) (425,604) NET CHANGES IN FUND BALANCES 98 (17,488) 630,591 Fund Balances, Beginning of Year 11,676 1,034,211 5,308,396 FUND BALANCES, END OF YEAR 11,774 $ 1,016,723 $ 5,938,987 $ 97 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2015 Accumulated Hawkin's Peak Markleeville Capital Communications Pipeline Vehicle Outlay Tower Prop 50 Grant Replacement ASSETS Cash and investments - $ - $ - $ 148,008 $ Accounts receivable - - - 13,320 Due from other governments - - - - Interest receivable - 101 Due from other funds 29,020 - - - Total Assets 29,012 $ - $ $ 161,429 $ LIABILITIES Accounts payable 23,796 $ - $ - $ 27,074 $ Due to other funds 16,645 - 1,989 - Total Liabilities 40,441 - 1,989 27,074 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 13,320 FUND BALANCES Restricted - - - - Committed - - - - Assigned - - - 121,035 Unassigned (11,429) - (1,990) - Total Fund Balances (11,429) - (1,990) 121,035 Total Liabilities, Deferred Inflows of Resources and Fund Balances 29,012 $ - $ $ 161,429 $ continued 98 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2015 Leviathan Inter County Parks and Peak Communications Road Recreation Communications Capital Improvement Grant Tower Maintenance ASSETS Cash and investments 14,420 $ - $ 69,356 $ 106,456 $ Accounts receivable - - - - Due from other governments 18,653 - - - Interest receivable - 50 51 Due from other funds - - - - Total Assets 33,065 $ - $ 69,406 $ 106,507 $ LIABILITIES Accounts payable 7,130 $ - $ - $ 16,609 $ Due to other funds 30,000 - - - Total Liabilities 37,130 - - 16,609 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 18,653 - - - Fund Balances: Restricted - - 69,406 - Committed - - - 89,898 Assigned - - - - Unassigned (22,718) - - - Total Fund Balances (22,718) - 69,406 89,898 Total Liabilities, Deferred Inflows of Resources and Fund Balances 33,065 $ - $ 69,406 $ 106,507 $ continued 99 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2015 Alpine s MHSA County Capital Government Facility Center Total ASSETS Cash and investments - $ - $ 338,240 $ Accounts receivable - - 13,320 Due from other governments - - 18,653 Interest receivable - - 185 Due from other funds 19,005 - 48,025 Total Assets 19,005 $ - $ 418,423 $ LIABILITIES Accounts payable 19,005 $ - $ 93,614 $ Due to other funds - 57,870 106,504 Total Liabilities 19,005 57,870 200,118 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 31,973 Fund Balances: Restricted - - 69,406 Committed - - 89,898 Assigned - - 121,035 Unassigned - (57,870) (94,007) Total Fund Balances - (57,870) 186,332 Total Liabilities, Deferred Inflows of Resources and Fund Balances 19,005 $ - $ 418,423 $ 100 ---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, 2015 Accumulated Hawkin's Peak Markleeville Capital Communications Pipeline Vehicle Outlay Tower Prop 50 Grant Replacement REVENUES Use of money and property $ - $ $ 522 $ Fines, forfeitures and penalties - - - - Intergovernmental - - - - Total Revenues - 522 EXPENDITURES Capital outlay 58,040 - - 126,856 Total Expenditures 58,040 - - 126,856 Excess (Deficiency) of Revenues Over (Under) Expenditures (58,047) - (126,334) OTHER FINANCING SOURCES (USES) Transfers in 46,142 - - 64,011 Transfers out - (106,456) - - Total Other Financing Sources (Uses) 46,142 (106,456) - 64,011 NET CHANGES IN FUND BALANCES (11,905) (106,456) (62,323) Fund Balances, Beginning of Year 476 106,456 (1,982) 183,358 FUND BALANCES, END OF YEAR (11,429) $ - $ (1,990) $ 121,035 $ continued 101 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Capital Projects Funds For the Year Ended June 30, 2015 Leviathan Inter County Parks and Peak Communications Road Recreation Communications Capital Improvement Grant Tower Maintenance REVENUES Use of money and property (23) $ - $ 213 $ 51 $ Fines, forfeitures and penalties - - - - Intergovernmental 47,705 - - - Total Revenues 47,682 - 213 51 EXPENDITURES Capital outlay 52,624 1,206 - 16,609 Total Expenditures 52,624 1,206 - 16,609 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,942) (1,206) 213 (16,558) OTHER FINANCING SOURCES (USES) Transfers in - 1,206 - 106,456 Transfers out - - - - Total Other Financing Sources (Uses) - 1,206 - 106,456 NET CHANGES IN FUND BALANCES (4,942) - 213 89,898 Fund Balances, Beginning of Year (17,776) - 69,193 - FUND BALANCES, END OF YEAR (22,718) $ - $ 69,406 $ 89,898 $ continued 102 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Capital Projects Funds For the Year Ended June 30, 2015 Alpine s MHSA County Capital Government Facility Center Total REVENUES Use of money and property - $ - $ 748 $ Fines, forfeitures and penalties - 207,000 207,000 Intergovernmental - 35,000 82,705 Total Revenues - 242,000 290,453 EXPENDITURES Capital outlay 19,005 580,786 855,126 Total Expenditures 19,005 580,786 855,126 Excess (Deficiency) of Revenues Over (Under) Expenditures (19,005) (338,786) (564,673) OTHER FINANCING SOURCES (USES) Transfers in 19,005 518,700 755,520 Transfers out - - (106,456) Total Other Financing Sources (Uses) 19,005 518,700 649,064 NET CHANGES IN FUND BALANCES - 179,914 84,391 Fund Balances, Beginning of Year - (237,784) 101,941 FUND BALANCES, END OF YEAR - $ (57,870) $ 186,332 $ 103