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Home My WebLink About2009-10 Butte CAFR - FINALCOUNTY OF BUTTE STATE OF CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2010 Kimshew Falls Photo by Peggy Moak Prepared Under the Supervision of: David A. Houser County Auditor-Controller o° li °~ o ~ ~ o Q ~ ~_ 1 0 0 ~'~ ~_ .-.- Q c0U N'~ Introductory Section urr COUNTY OF BUTTE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2010 Table of Contents INTRODUCTORY SECTION: Pia e Table of Contents i Letter of Transmittal v ----------------------------------------------------------------------------------------------------------------- Board of Supervisors and Principal County Officials___________________________________________________________________ xi Organization Chart _ _________ _________ _____________ xii --------------------------------------------------- --------- --------- -------- GFOA Certificate of Achievement xiii --------------------------------------------------------------------------------------------- FINANCIAL SECTION: Independent Auditor's Report ..................................................................................................... ....... 1 Management's Discussion and Analysis (Required Supplementary Information) ..................... ....... 3 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets .................................................................................................... ....... 13 Statement of Activities ...................................................................................................... ....... 14 Fund Financial Statements: Governmental Funds: Balance Sheet ............................................................................................................... ....... 17 Reconciliation of the Governmental Funds Balance Sheet to the Governmental-Wide Statement of Net Assets ............................................................ ....... 18 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................... ....... 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Governmental-Wide Statement of Activities ............................................................................................... ....... 20 Proprietary Funds: Statement of Net Assets ............................................................................................... ....... 21 Statement of Revenues, Expenses, and Changes in Net Assets ................................... ....... 22 Statement of Cash Flows .............................................................................................. ....... 23 Fiduciary Funds: Statement of Fiduciary Net Assets ............................................................................... ....... 25 Statement of Changes in Net Assets -Investment Trust Fund .................................... ....... 26 Notes to the Basic Financial Statements ................................................................................ ....... 27 i COUNTY OF BUTTE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2010 Table of Contents FINANCIAL SECTION (continued): Required Supplementary Information (other than MD&A): County Employee's Retirement Plan (Defined Pension Benefit Plan): Schedule of Funding Progress .......................................................................... Other Post Employment Benefits (OPEB) Plan: Schedule of Funding Progress .......................................................................... Budgetary Comparison Schedule -General Fund ................................................ Budgetary Comparison Schedule -Welfare Fund ............................................... Budgetary Comparison Schedule -Public Health Fund ...................................... Budgetary Comparison Schedule -Behavioral Health Fund ............................... Budgetary Comparison Schedule -Road Fund ................................................... Note to Required Supplementary Information -Budgetary Basis of Accounting OTHER SUPPLEMENTARY INFORMATION: Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet ........................................................................................ Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Budgetary Comparison Schedules: Capital Projects Fund .......................................................................................... Equipment Replacement Fund ............................................................................ Equipment Fund .................................................................................................. State COPS Fund ................................................................................................. Water Resources Fund ........................................................................................ Fire Protection Fund ............................................................................................ Library Fund ........................................................................................................ Transit Fund ........................................................................................................ Housing and Community Development Fund ..................................................... Fish and Game Fund ........................................................................................... Child Support Services Fund ............................................................................... County Service Areas Fund ................................................................................. IHSS Public Authority Fund ............................................................................... Impact Fees ......................................................................................................... Debt Service Fund ............................................................................................... Internal Service Funds: Combining Statement of Net Assets ..................................................................... Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Combining Statement of Cash Flows .................................................................... Fiduciary Funds: Agency Funds: Combining Statement of Fiduciary Assets and Liabilities .................. Combining Statement of Changes in Fiduciary Assets and Liabilities Pia e 69 70 71 81 85 89 93 96 99 102 105 107 108 109 111 113 115 116 117 119 120 121 122 123 124 129 131 134 145 146 ii COUNTY OF BUTTE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2010 Table of Contents STATISTICAL SECTION: Pia e Net Assets by Component .......................................................................................................... ........ 151 Changes in Net Assets ............................................................................................................... ........ 152 Fund Balances, Governmental Funds ........................................................................................ ........ 154 Changes in Fund Balances, Governmental Funds ..................................................................... ........ 155 Property Taxes Levies and Collections ...................................................................................... ........ 156 Assessed Value of Taxable Property ......................................................................................... ........ 157 Property Tax Rates -Direct and Overlapping Governments ..................................................... ........ 158 Principal Property Tax Payers .................................................................................................... ........ 159 Legal Debt Margin Information ................................................................................................. ........ 160 Ratio of Net General Obligation Bonded Debt to Taxable Assessed Value and Net General Obligation Bonded Debt per Capita ........................................................................... ........ 161 Ratio of Outstanding by Debt by Type ...................................................................................... ........ 162 Overlapping Bonded Debt ......................................................................................................... ........ 163 Ratio of General Bonded Debt Outstanding .............................................................................. ........ 164 Demographics and Economic Statistics ..................................................................................... ........ 165 Principal Employers ................................................................................................................... ........ 166 Miscellaneous Statistical Information ........................................................................................ ........ 167 Operating Indicators by Function .............................................................................................. ........ 168 Capital Asset Statistics by Function ........................................................................................... ........ 169 Full-Time Equivalent County Government Employees by Function/Program .......................... ........ 170 GLOSSARY: Glossary to the Comprehensive Annual Financial Report ................................................................. 171 iii o° li °~ o ~ ~ o o~~'°" o \U N~% (This Page Intentionally Left Blank) 1v urT o~uTr~`a o ~ o _~~_. , ~ouN~~ December 27, 2010 BUTTE COUNTY 25 COUNTY CENTER DRIVE OROVILLE, CALIFORNIA 95965-3392 Telephone (530)-538-2030 Fax: (530)-538-3831 To the Citizens of Butte County, California Dear Citizens: The Comprehensive Annual Financial Report (CAFR) of the County of Butte (County) for the fiscal year ended June 30, 2010, is hereby submitted in compliance with Sections 25250 and 25253 of the Government Code of the State of California (State). Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the County. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and present fairly the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the County, as of June 30, 2010, and the respective changes in financial position and cash flow, where applicable, thereof for the fiscal year then ended. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. This letter of transmittal is designed to complement the Management's Discussion and Analysis and should be read in conjunction with it. The County's MD&A can be found on pages 3 through 12 of this report. The financial reporting entity of the County includes all the funds of the primary government (i.e., Butte County as legally defined), as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, certain districts and agencies accounted for in the Special Revenue are reported as part of the primary government. For a more detailed overview of the County's component units see the Notes to the Basic Financial Statements. PROFILE OF THE GOVERNMENT One of the State's original 27 counties, the County was established by an act of the State Legislature on February 18, 1850. The County is located in the northern portion of the Sacramento Valley. Rising from the Sacramento River, the County's western boundary, to the Sierra Nevada Mountains, its eastern perimeter, the County's 1,665 square miles range in elevation from sixty feet to over 7,000 feet resulting in a considerable variation in climate. There are five incorporated cities/town located within the County: v Biggs, Chico, Gridley, Oroville, and Paradise. The County's population is 221,331 with approximately 38% of the residents living in the unincorporated area. Policymaking and legislative authority is vested in the County Board of Supervisors (the Board), which consists of an elected supervisor from each of five districts. The Board is responsible, among other things for passing ordinances, adopting the budget, appointing committees, appointing the Chief Administrative Officer (CAO), and appointing non-elected department heads. Supervisors are elected to four-year staggered terms with two supervisors being elected in even-year elections and three supervisors being elected in odd-year elections. The County Charter designates that certain officers are elected which are responsible for the offices of the County Clerk-Recorder, Assessor, Auditor-Controller, District Attorney, Sheriff-Coroner, and Treasurer-Tax Collector. The County provides a full range of services including sheriff; health and sanitation; the construction and maintenance of highways, streets, and infrastructure assets; recreational activities and cultural events; election; library; social services; and administration. MAJOR INITIATIVES Butte County is undertaking several major initiatives notwithstanding significant fiscal limitations: Significant County-wide Budget Cuts During the 2009/2010 fiscal year, the County was faced with the effects of a global recession and increasingly dire outlook from the California state government. The Board of Supervisors acted quickly and decisively to ensure that the County remained financially stable through the fiscal year and to create a prudent spending plan for the coming year. These actions included significant budget cuts and layoffs across the entire County organization. While these cuts have placed strain on County operations, the Board's decisions have enabled the County to continue to provide its necessary services to its citizens despite the uncertain economic climate. FACTORS AFFECTING FINANCIAL CONDITION Global Recession Butte County continues to steer through the ongoing uncertainties in the financial markets and the budget concerns facing the State of California. The budget challenges faced by the county in the past fiscal year have been met and we are anticipating possible impacts in the current county budget as the State of California addresses the significant deficit it is facing during the current year. Economy-driven impacts to County provided programs and services can be less severe with proactive management of the County's budget. Finance, the Treasurer and Auditor offices continue to work closely to manage the cash demands on the County as the economy shows some slow improvement. Impact of State Fiscal Crisis The majority of the County's revenues come from the State of California. As the State has struggled to come up with a sustainable, prudent, and balanced spending plan against the backdrop of the global economic crisis, the County has been forced to stand by and react to sudden and evolving changes in vi funding. These changes have included delayed payments, borrowing from counties, suspending funding, and cancelling funding altogether -even for services required to be performed by State mandate. This uncertainty creates additional risk for the County. To mitigate this risk, all departments in the County, led by the Administrative, Finance, Treasurer/Tax Collector and Auditor-Controller offices, have conducted thorough reviews of their budgetary statuses, cash positions, and fiscal outlooks with close monitoring taking place continuously. Internal Control The management of the County is responsible for establishing and maintaining internal controls designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with accounting principles general accepted in the United States of America. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) choices between these two concepts often require estimates and judgments by management. Single Audit As a recipient of federal and state financial assistance, the County is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non profit Organizations. Information related to this single audit, include the schedule of federal awards, findings and questioned costs, and the independent auditor's report on internal control and compliance. The County is also responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws and regulations related to those programs. Internal controls are subject to periodic evaluation by management and the Auditor-Controller Division's internal audit staff. The 2009-10 Single Audit will be issued under separate cover and will be available by contacting the Auditor-Controller's office, after March 31, 2011. Budgeting Controls In addition to accounting controls, the County maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Supervisors. 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 on or before August 30. Budgeted expenditures are enacted into law through the passage of an Appropriation Ordinance. This ordinance mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the County's Board of Supervisors. An operating budget is adopted each fiscal year for all Governmental Funds. Expenditures are controlled at the object level within budget units for the County. The object level within a budget unit is the level at which expenditures may not legally exceed appropriations. Any amendments or transfers of appropriations between object levels within the same budget unit or between departments or funds are authorized by the County Chief Administrative Officer's office and must be approved by the Board of Supervisors. The Board of Supervisors must approve supplementary appropriations normally financed by vii unanticipated revenues during the year. Pursuant to Board Resolution, the County Chief Administrative Officer is authorized to approve transfers and revision of appropriations under $50,000 within a single budget unit as deemed necessary and appropriate. Budgeted amounts in the budgetary financial schedules are reported as originally adopted and are amended during the fiscal year by resolutions approved by the Board of Supervisors. The County uses an encumbrances system as an extension of normal budgetary accounting for the general, special revenue, and other debt service funds and to assist in controlling expenditures of the capital projects funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Encumbrances are combined with expenditures for budgetary comparison purposes. The County also maintains an encumbrance accounting system as one technique of accomplishing budgetary control and cash planning. Open encumbrances at June 30, 2010, for all governmental fund types are reported as reservations of fund balances. Unencumbered appropriations lapse at the end of each fiscal year. Cash Management Cash temporarily idle during the year was invested in the Local Agency Investment Fund (managed by the California State Treasurer's Office), CalTrust (a public agency investment trust), money market mutual funds, time certificates, commercial paper, municipal notes, and U.S. Treasury and Agency investments. The first and primary objective of the Treasurer's investment of public funds is to safeguard investment principal; second, to maintain sufficient liquidity within the portfolio to meet daily cash flow requirements, and third, to achieve a reasonable rate of return or yield on the portfolio consistent with these objectives. The portfolio shall be actively managed in a manner that is responsive to the public trust and consistent with State law. Restrictive investment policies are in place to minimize credit and market risks while maintaining a competitive yield on the portfolios. The County Treasurer's selection of investments is more restrictive than those authorized in Sections 53601 and 53635 of the California Government Code and gives primary consideration to the safety and preservation of the principal amounts invested. On-going cash flow projections are maintained for the coming twelve months to assure that adequate funds are available to meet daily cash expenditure requirements. State statutes, specific debt financing indentures and contractual arrangements generally determine the investment restrictions of County cash and investments not held in the County Treasury. In accordance with Governmental Accounting Standards Board (GASB) Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Pools, school districts and special district external investments pools are reported as investment trust funds. Of the Treasurer's total cash and investments pool of $395,609,508 at June 30, 2010, $229,132,141 relates to the external investment pool participants. viii Risk Management The County self-insures for property damage, liability, workers' compensation, unemployment, and dental insurance claims. Self-insurance transactions are accounted for in Internal Service Funds. It is the County's policy to fund current self-insurance liabilities for Governmental Funds by making provisions in the budget of the succeeding year. Proprietary premium charges are expensed in the year incurred. Employee Benefit Plans The County participates in and contributes to the employee retirement plans with the Ca1PERS, which is an agent multiple-employer defined benefit retirement plan that acts as a common investment and administrative agent for various local and state governmental agencies within the state. Ca1PERS provides retirement, disability, and death benefits based on the employees' years of service, age, and final compensation. Copies of the Ca1PERS' annual financial report are available through Ca1PERS. Post-retirement Health Care Benefits The County provides post-retirement health insurance benefits, in accordance with County ordinance, to employees who retire from the County before attaining age 65 with at least ten (10) years or more of cumulative service with Butte County who, upon termination, immediately retire under the provisions of the County's contract with the Public Employees' Retirement System shall be eligible for the health benefit only coverage for themselves (employees only) to Medicare Supplemental Qualifying Age. Under the following conditions, PERS members shall be entitled to twelve (12) months of reimbursable health premiums immediately following retirement. In addition, miscellaneous members are permitted one of the following choices: 1) to receive one (1) month of reimbursable health only premium for each day of sick leave on accrual at the date of retirement; or 2) to receive one (1) month of reimbursable health only premium for each two and one-half (2 1/2) days in excess of thirty (30) days accrued sick leave to cover both employee and spouse to Medicare Supplemental Qualifying Age; or 3) one (1) month of reimbursable health plan benefits (employee only) will be granted for each day of accrued sick leave until the sick leave credit is exhausted or the employee reaches Medicare Supplemental Qualifying Age; and one (1) month of reimbursable health plan benefits for each one and one-half days in excess of thirty (30) days accrued sick leave to cover employee's spouse until the sick leave credit is exhausted or spouse reaches Medicare Supplemental Qualifying Age. OTHER INFORMATION Independent Audit County charter requires an annual audit by independent certified public accountants. The firm of Gallina, LLP was selected by the County to meet this requirement. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County for the fiscal year ended June 30, 2010, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements: and evaluating the overall financial statement presentation. The independent auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified ("clean") opinion that the County's basic financial statements for the fiscal year ended June 30, 2010, are fairly presented in conformity with accounting standards generally accepted in the United States of America. The independent auditor's report is presented as the first item of the financial section of the report. ix Awards and Acknowledgments The GFOA awarded the prestigious Certificate of Achievement for Excellence in Financial Reporting to the County for successful completion of the CAFR for the fiscal year ended June 30, 2009. The award was also given for the fiscal years ended June 30, 2007 and 2008. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the efficient and dedicated services of staff from the Auditor-Controller office and the cooperation and assistance of all County departments. I would like to commend the Board of Supervisors for its interest, support, and exemplary leadership in planning and conducting the financial operations of the County in a responsive and progressive manner. Respectfully submitted, ~' David A. Houser County Auditor-Controller x COUNTY OF BUTTE BOARD OF SUPERVISORS AND PRINCIPAL COUNTY OFFICIALS June 30, 2010 Board of Supervisors First District,____________________________ _______________________Bill Connelly, Chair* Second District ------------------------ Jane Dolan ----------------------- Third District --------------------------- Maureen Kirk ----------------------- Fourth District_________________________ _______________________ Steve Lambert, Vice Chair* Fifth District____________________________ _______________________Kim Yamaguchi *Chosen annually at the first meeting in January. County-wide Elected Officials Assessor------------------------------------------ ----------------Fred Holland Auditor-Controller David A. Houser Clerk/Recorder_______________________________ ________________Candace Grubbs District Attorney Mike Ramsey Sheriff-Coroner______________________________ ________________Jerry Smith Treasurer-Tax Collector C. Linda Barnes Appointed Officials Chief Administrative Officer Paul Hahn Interim Chief Administrative Officer (at 6/30/10)_____ Scott Tandy County Counsel Bruce Alpert xi t. ,.:ri _. ;, ~~ -: 7 l ;'$ ~-:sn.. . ~. yF6 n Y:.~ i . `. ~ I 1~ w~ ; >C X111 o° li °~ o ~ ~ o o~~'°" o \U N~% (This Page Intentionally Left Blank) x1v urT ~~ o - o ~ o Q ~ ~_ 1 0 0 ~'~ ~_ .-.- Q c0U N'~y Financial Section urr INDEPENDENT AUDITOR' S REPORT Board of Supervisors County of Butte, California 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 Butte, California (County), as of and for the year ended June 30, 2010, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the County of Butte, California. Our responsibility is to express opinions on these financial statements based on our audit. 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit, 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 Butte, California, as of June 30, 2010, the respective changes in financial position and cash flows, where applicable, and the respective budgetary comparisons for the General Fund and major special revenue funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued under separate cover our report dated December 27, 2010, on our consideration of the County of Butte's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements. 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 1 925 Highland Pointe Drive, Suite 450, Roseville, CA 95678-5418 te1:916.784.7800 ^ fax: 916.784.7850 ^ www.gallina.com Board of Supervisors County of Butte, California The Management's Discussion and Analysis (MD & A) and the required supplementary information, as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules and detailed budget schedules have been subjected to the auditing procedures applied by us in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Roseville, California December 27, 2010 2 U a~ ,ii., . 0 ~ -f -- ~ ~~- ~ ~(~ ~~ 0 ~o 0 o~ Management's Discussion and Analysis The information in this section is not covered by the Independent Auditor's Report It is presented as required supplementary information for the benefit of the readers of the Comprehensive Annual Financial Report. TT In this section of the County of Butte's (County) Comprehensive Annual Financial Report, the County's management discusses financial results for the fiscal year ended June 30, 2010. It should be read in conjunction with the County's financial statements following this section. All dollar amounts are expressed in thousands in the text and tables unless otherwise indicated. I. FINANCIAL HIGHLIGHTS • The assets of the County exceeded its liabilities at the close of the most recent fiscal year by $376,575 (net assets). Of this amount, $44,757 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets decreased by $1,719 during the fiscal year excluding prior period adjustments. • As of June 30, 2010, the County's governmental funds reported combined ending fund balances of $99,821, a net increase of $15,927 in comparison with the prior fiscal year, excluding the previous period adjustments. This net increase represents a increase of $5,429 in reserved fund balances, a decrease of $215 in designated fund balances, and an increase of $10,713 in unreserved, undesignated fund balances, which may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the unreserved, undesignated fund balance for the general fund was $16,711 or 18.1 % of total general fund expenditures. The County's total long-term obligations as of June 30, 2010 increased by $2,349 over the prior period. The key factor in the increase was the increase in other postemployment benefits of $3,185 partially offset by the retirement of $355 in Certificates of Participation notes, the retirement of $217 in Notes Payable, and the retirement of $107 in capital lease obligations. II. OVERVIEW OF THE FINANCIAL STATEMENTS A. GASB 34 Financial Report Model The County of Butte has adopted a financial reporting model that is designed to demonstrate government accountability by presenting both along-term and anear-term view of its finances. This model is prescribed by Statement Number 34 of the Government Accounting Standard Board (GASB 34). This model is comprised of three parts: 1) Management's Discussion and Analysis which provides the financial highlights; 2) The County's basic financial statements, which consist of the Government-Wide financial statements; the Fund financial statements, and the Notes to the financial statements; and 3) Required Supplementary Information. B. Government-Wide Financial Statements The government-wide financial statements provide an overview of the County's finances, in a manner similar to aprivate-sector business that is, using the accrual basis of accounting. They demonstrate accountability of Butte County by showing the extent to which it has met operating objectives efficiently and effectively, using all resources available, and whether it can continue to do so. The statement of net assets presents information on all of the County's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The statement of activities presents information on expenses and revenues to show how the government's net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues are reported as soon as earned and expenses are reported as soon as incurred even though the related cash flows may not take place until future fiscal periods (e.g., earned but unused vacation leave). Both of these 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. The business-type activities of the County include the Butte County Neal Road Landfill. Certain component units such as county service areas are essentially part of County operations and their financial data are blended in with operational funds of the County. C. Fund Financial Statements The fund financial statements provide evidence of accountability by demonstrating compliance with budgetary decisions made in public forum. A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or purposes stipulated by laws, regulations or policies. The funds of the County are divided into three categories: governmental, proprietary, and fiduciary. 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 near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. The County maintains 143 individual governmental funds. On the financial statements for governmental funds information is presented separately for five major funds: the General Fund, the Welfare Fund, the Public Health Fund, the Behavioral Health Fund, and the Road Fund. Data from the other governmental funds are aggregated into a single column. Proprietary funds are of two types. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses an enterprise fund to account for its central landfill operations. Internal service funds are used to accumulate and allocate costs internally among the County's various functions. The County uses internal service funds to account for a variety of services including telephone services, insurance, information systems, duplicating, utilities, and facilities maintenance. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government- wide financial statements. 4 Proprietary funds statements provide the same type of information as the part of government-wide financial statements pertaining to business-type activities, only in more detail. The County's internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. 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 programs. In the fiduciary fund category, the County maintains both agency funds and investment trust funds. Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the financial information provided in the government-wide and fund financial statements. D. Required Supplementary Information In addition to the basic financial statements, this report presents Required Supplementary Information. The required supplementary information is presented concerning the County's progress in funding its obligation to provide pension benefits to its employees and the County General fund budgetary comparison schedule and the major special revenue funds. E. Combining Statements and Schedules The combining and individual fund statements and schedules referred to earlier provide information for nonmajor governmental funds, internal service funds, and fiduciary funds and are presented immediately following the required supplementary information. III. FINANCIAL ANALYSIS COUNTY-WIDE Table 1-Net Assets (in thousands) Total Governmental A ctivities Business-Type A ctivities Total Dollar Change % Change 2010 2009 2010 2009 2010 2009 2009 to 2010 2 009 to 2010 Assets: Current and other assets $ 191,739 $ 180,333 $ 19,157 $ 18,730 $ 210,896 $ 199,063 $ 11,833 5.94 Capital assets 268,350 275,395 17,422 17,234 285,772 292,629 (6,857) (2.34) Total assets 460,089 455,728 36,579 35,964 496,668 491,692 4,976 1.01 Liabilities: Current and other liabifities 21,774 24,448 317 975 22,091 25,423 (3,332) (13.11) Long-tennliabifities 83,777 80,795 14,225 14,858 98,002 95,653 2,349 2.46 Total liabifities 105,551 105,243 14,542 15,833 120,093 121,076 (983) (0.81) Net Assets: Invested in capital net ofrelated debt 263,205 269,572 7,162 5,046 270,367 274,618 (4,251) (1.55) Restricted net assets 55,903 51,089 5,548 4,421 61,451 55,510 5,941 10.70 Unrestricted net assets 35,430 29,824 9,327 10,664 44,757 40,488 4,269 10.54 Total net assets $ 354,538 $ 350,485 $ 22,037 $ 20,131 $ 376,575 $ 370,616 $ 5,959 1.61 5 Investment in capital assets net of related debt reflects the County's investment in capital assets (i.e. its land, structures and improvements, infrastructure, and equipment). The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Restricted net assets represent resources that are subject to external restrictions on how they may be used. Unrestricted net assets represent 11.9% of the total net assets and may be used to meet the County's ongoing obligations to citizens and creditors. Beside the amount invested in capital assets, there are externally imposed debt service reserve and statutory constraints on the use of 100% of the restricted net assets. The following table presents the activities that accounted for the changes in net assets. Table 2 -The Change in Net Assets (in thousands) Total Govemmenfal Activities Business-Type Activities Total Dollar Change % Change Revenues: 2010 2009 2010 2009 2010 2009 2009 to 2010 2009 to 2010 Program Revenues: Charges far services $ 41,207 $ 36,329 $ 6,151 $ 6,094 $ 47,358 $ 42,423 $ 4,935 11.63 Opemtmg grants and contributions 222,575 222,938 160 84 222,735 223,022 (287) (0.13) Capital grants and contnbutrons 20,924 16,300 -- -- 20,924 16,300 4,624 28.37 General Revenues: Property taxes 49,822 49,534 -- -- 49,822 49,534 288 0.58 Sales and use taxes 3,502 3,525 -- -- 3,502 3,525 (23) (0.65) Other taxes and related revenues 1,010 1,032 -- -- 1,010 1,032 (22) (2.13) Giants and contributions not restricted to specili 15,504 17,253 -- -- 15,504 17,253 (1,749) (10.14) Uraestricted interest and investment earnitig~ 3,218 4,832 463 811 3,681 5,643 (1,962) (34.77) Other revenues 4,522 11,689 4,522 11,689 (7,167) (61.31) Total revenues 362,284 363,432 6,774 6,989 369,058 370,421 (1,363) (0.37) Expenses: General government 25,115 20,710 -- -- 25,115 20,710 4,405 21.27 Public protection 88,791 94,362 -- -- 88,791 94,362 (5,571) (5.90) Public ways and ficilRies 30,009 34,975 -- -- 30,009 34,975 (4,966) (14.20) Health and sanitation 72,502 67,582 -- -- 72,502 67,582 4,920 7.28 Public assistance 143,689 142,616 -- -- 143,689 142,616 1,073 0.75 Education 2,805 3,291 -- -- 2,805 3,291 (486) (14.77) Culture and recreation 512 525 -- -- 512 525 (13) (2.48) Interest on long-tear debt 2,499 2,660 -- -- 2,499 2,660 (161) (6.05) Sanitation 4,855 5,805 4,855 5,805 (950) (16.37) Total expenses 365,922 366,721 4,855 5,805 370,777 372,526 (1,749) (0.47) Change in net assets befare transfers (3,638) (3,289) 1,919 1,184 (1,719) (2,105) 386 (18.34) Transfers 14 -- (14) __ __ __ __ __ Change in net assets (3,624) (3,289) 1,905 1,184 (1,719) (2,105) 386 (18.34) Net assets atbeginrtixig year 350,484 345,691 20,132 18,947 370,616 364,638 5,978 1.64 Prior period adjustment 7,678 8,083 7,678 8,083 (405) Net assets at end ofyear $ 354,538 $ 350,485 $ 22,037 $ 20,131 $ 376,575 $ 370,616 $ 5,959 1.61 6 The following highlights significant factors that affected the governmental and business-type activities and contributed to the decrease in net assets: • Governmental Activities accounted for a decrease in net assets of $3,624, primarily due to current year depreciation expense of the County's infrastructure (roads and bridges), which amounted to $19,454. The decrease was offset by a $288 increase in property taxes and a $4,878 increase in charges for services and a $4,624 increase in capital grants. • Business-Type Activities accounted for an increase in net assets of $1,905, primarily due to current year revenues exceeding expenses. Y;x enses and Yro ram 1Zevenues -Governmental Activities Oexpenses -actual dollar amount ®program revenues -actual dollar amount $160,000,000 $150,000,000 $140,000,000 $130,000,000 $120,000,000 $110,000,000 $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- ~~~~x~~~ >>c sated ~a°'~xtix~~ 5alxx~a~~~ ~~~~~~~~e ~~~~~,Mori ~S~'~~~~e~ tex~~w~ eY'~la, fl° 4`ab ~a~y aka a,`b~a Q~bUc i~~ea~~o So~`o~~fl ~ 4`~U~~~ ~~ x~ aba ~~e~e~ C~Jto. 7 IV. FINANCIAL ANALYSIS OF FUNDS As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with budgetary and legal requirements. Governmental funds The general government functions are included in the General, Special Revenue, Capital Project, and Debt Service Funds. Included in these funds are the special districts governed by the Board of Supervisors. 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. In particular, the unreserved fund balance may serve as a useful measure of the County's net resources available for spending at the end of the fiscal year. At June 30, 2010, the County's governmental funds reported combined ending fund balances of $99,821. Approximately 37.1% of this total amount ($37,045) constitutes the unreserved fund balance, which may be used to meet the County's ongoing general obligations to citizens and creditors. The remainder of the fund balance is reserved to indicate that it is not available for general obligations because it has been committed in the form of prior year obligations (encumbrances), inventories, debt service reserves, or the funds have statutory restrictions. The general fund is the main operating fund of the County. At June 30, 2010, the unreserved fund balance of the general fund was $16,826 while the total fund balance reached $34,835. As measures of the general fund's liquidity, it is useful to note that the unreserved fund balance represents 18.2% percent of total fund expenditures, while the total fund balance represents 37.8% percent of that same amount. The general fund's fund balance increased by $10,553 during the current fiscal year, excluding prior period adjustments. The welfare fund has a total fund balance of $3,990. Of this amount, $1,833 is reserved, and the balance of $2,157 is unreserved. The overall fund balance increased by $971 due to a decrease in overall expenditures. The public health fund has a total fund balance of $14,911. Of this amount, $8,116 is reserved, and the balance of $6,795 is unreserved. The overall fund balance decreased by $1,966 due primarily to an increase in expenditures during the current fiscal year. The behavioral health fund has a total fund balance of $(1,199). Of this amount, $5,749 is reserved, and the balance of $(6,948) is unreserved. The behavioral health fund incurred a negative fund balance due to the State of California's reduction to funding for behavioral health. The road fund has a total fund balance of $17,451. Of this amount, $8,938 is reserved, and the balance of $8,513 is unreserved. The overall fund balance increased by $8,259 during the current fiscal year, due to increased revenues and decreased expenditures. The following table presents revenues from various sources as well as reflecting increases or decreases from the prior fiscal year in the governmental funds. Table 3 -Revenues in the Governmental Funds (in thousands) FY 2009 FY 2010 Change Revenue Sources Amount % of total Amount % of total Amount % of change Taxes $ 54,091 14.9% $ 54,334 15.0% $ 243 0.4% Licenses and permits 3,721 1.0% 3,123 0.9% (598) (16.1%) Fines, forfeitures, and penalties 3,307 0.9% 3,835 1.1% 528 16.0% Use of money and property 4,064 1.1% 2,766 0.8% (1,298) (31.9%) Intergovernmental 256,477 70.9% 258,984 71.6% 2,507 1.0% Charges for services 29,301 8.1% 34,249 9.5% 4,948 16.9% Other 11,689 32% 4,522 1.2% 7,167 (61.3%) Total 362,650 100% 361,813 100% (837) (02%) County of Butte General Fund Revenues For the Fiscal Year Ended June 30, 2010 Intergovernmental 71% Use of money and property 1% Fines, forfeiture ~ ~ Other Charges for services Licenses and permits Tapes o 9% and penalties 1% 15% 2/0 1% Significant changes for major revenue sources are explained below. • Taxes -Tax revenues include sales taxes and property taxes. The increase in tax revenues is due primarily to increased property taxes, as well as smaller increases in property transfer tax revenues. This was offset by a decrease in sales taxes. • Licenses and permits -Decreased revenues from construction permits and planning application fees account for most of the decrease noted in this revenue category. • Fines, forfeitures, and penalties -Increase in court related fines and forfeitures. • Use of money and property -Reflects decrease due to the change in fair value of the County's investments. • Other -Decreased revenue under other is primarily due to decrease in reimbursements. 9 The following table presents expenditures by function compared to prior fiscal year's amounts in the governmental funds. Table 4 -Expenditures in the Governmental Funds (in thousands) FY 2009 FY 2010 Change Function Amount % of total Amount % of total Amount % of change General government $ 21,456 6.0% $ 23,439 6.8% $ 1,983 8.5% Public protection 94,357 26.5% 85,264 24.6% (9,093) (10.7%) Public ways and facilities 22,211 6.2% 18,183 5.2% (4,028) (22.2%) Health and sanitation 67,531 19.0% 71,610 20.6% 4,079 5.7% Public assistance 143,752 40.3% 142,384 41.0% (1,368) (1.0%) Education 3,228 0.9% 2,714 0.8% (514) (18.9%) Culture and recreation services 434 0.1% 345 0.1% (89) (25.8%) Debt service 3,344 0.9% 3,166 0.9% (178) (5.6%) Total $ 356,313 100% $ 347,105 100% $ (9,208) (2.7%) Culture and recreation Debt service services 1% General government Education ~% 7% 1% Public protection 24% Public assistance 41% Public ways and facilities Health and sanitation 5% 21% Significant changes for major functions are explained below. • Culture and recreation -The decrease in this function is due to the decrease in purchases for book and periodical purchases for libraries. • Debt service -The decrease in this function is due to the County paying down the entire remaining balance of the Pension Obligation Bonds Series C in the prior year. Proprietary funds The County's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The funds include the enterprise funds: the County Central Landfill Fund; and the internal service funds, which are presented in aggregate. The Landfill fund has total net assets of $22,037. Of this amount, $7,162 is invested in capital assets, net of related debt, $5,548 is restricted, and the balance of $9,327 is unrestricted. Overall net assets increased by $1,905 due to a decrease in operating expenses. 10 V. GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original budget and the final amended budget for revenues were an increase of $3,372. This increase was due to the County anticipating mores aid from other governments than was originally anticipated. During the fiscal year, actual revenues were more than budgetary estimates by $2,747. The main reason for the increase was that taxes were $1,524 more than the estimated amount due to decreased sales taxes. Additionally, fines, forfeitures, and penalties were $1,165 greater than the estimated amount and other financing sources were $1,023 greater than the estimated amount. These gains were primarily offset by licenses and permits revenue being $928 less than budgeted. Actual expenditures and transfers were less than budgetary estimates by $21,825. The net effect of under-realization of revenues and under- utilization of appropriations resulted in a favorable variance of $24,571. VL CAPITAL ASSETS AND DEBT ADMINISTRATION A. Capital Assets The County's investment in capital assets for its governmental and business-type activities as of June 30, 2010, amounts to $285,772 (net of accumulated depreciation). This investment in capital assets includes land, structures and improvements, equipment, construction-in-progress, and infrastructure. The total decrease in the County's net investment in capital assets for the current period was 2.3%. The decrease resulted from infrastructure depreciation exceeding infrastructure assets acquired by $12,182. Additional information on the County's capital assets can be found in the Notes to the Financial Statements section of this report in Note 5 -Capital Assets. Key events affecting capital assets during the fiscal year included the following: • Construction in progress capital assets being transferred structures and improvements and equipment. • For government-wide financial statement presentation, all depreciable capital assets were depreciated from acquisition date to the end of the current fiscal year. Fund financial statements record capital asset purchases as expenditures. Table 5 -Capital Assets (Net of Depreciation) (in thousands) Governmental activities Business-ty pe activities Total 2009 2010 2009 2010 2009 2010 Land $ 3,406 $ 3_~(iU $ 488 $ ~ 31 $ 3,895 $ ~.'> ; I Structures & improvements 43,064 -12,t;~ 1 88 2; 3 43,152 42,x) 37 Equipment 13,926 12, 376 1,631 12 36 15,557 13,612 Infrastructure 213,597 2(i~)_298 -- -- 213,597 2U9.29~; Construction in progress 1,402 32 I 15,026 1 x,672 16,428 I ~,~)~) 3 Total $ 275,395 $ 2c~~, 3~U $ 17,234 ~ 17,-1?? $ 292,629 ~ 2'~~ ; 7? 11 B. Long-Term Obligations At June 30, 2010, the County had total long-term obligations outstanding of $97,853 consisting of $13,245 in Certificates of Participation, capital lease obligations of $942, bonds payable of $50,403, loan payable of $300, and notes payable of $2,278. Additional long-term liabilities include compensated leave payable of $14,037, actuarial claims liability of $5,164 for general insurance and worker's compensation self insurance, landfill closure/post closure care liability of $2,285, and OPEB obligation of $9,200. Additional information on the County's long-term liabilities can be found in the Notes to the Financial Statements section of this report in Note 7 -Long-Term Obligations. VII. Fiscal Outlook The County adopted its fiscal year 2010-2011 Adopted Budget in the total amount of $408,984, with a General Fund Contingency Appropriation of $10,531. This represents increased financing requirements of $10,767 from the prior fiscal year, and a General Fund Contingency Appropriation decrease of $1,007. The County will continue to face difficult fiscal challenges in the foreseeable future. Although the most critical fiscal uncertainty facing the County continues to be the impact on local government resulting from actions the State of California may take in addressing its own fiscal problems, declining revenues and increasing social service and indigent health caseloads due to the declining economy will also impact the ability of the County to maintain current service levels. VIII. Request for Information This financial report is designed to demonstrate accountability of the Butte County government by providing both long-term and near-term views of the County's finances. Questions or comments regarding any of the information presented in this report or requests for additional financial information should be addressed to the Auditor-Controller, 25 County Center Drive, Oroville, CA 95965. 12 /~ o, 0 o ~~,o l'# o a ~_ o \o Basic Financial Statements- Government-wide Financial Statements UTT COUNTY OF BUTTE Statement of Net Assets June 3 0, 2010 Primary Government Governmental Business-Type ASSETS Activities Activities Totals Current Assets: Cash and investments $ 96,778,785 $ 16,312,082 $ 113,090,867 Restricted Assets: Cash with fiscal agent 6,448,463 2,199,928 8,648,391 Imprest cash 87,045 2,800 89,845 Accounts receivables, net 1,270,969 269,774 1,540,743 Interest receivable 599,550 99,523 699,073 Due from other government agencies 32,506,953 -- 32,506,953 Prepaid items 33,608 -- 33,608 Deposits with others 92,797 -- 92,797 Inventory 438,639 -- 438,639 Internal balances 995 (995) -- Loans receivable 1,707,859 -- 1,707,859 Net pension asset 51,451,536 -- 51,451,536 Deferred bond issuance costs 321,939 273,113 595,052 Noncurrent Assets: Capital Assets: Nondepreciable 3,821,899 16,102,795 19,924,694 Depreciable, net 264,528,518 1,319,511 265,848,029 Total assets 460,089,555 36,578,531 496,668,086 LIABILITIES Current Liabilities: Accounts payable 4,947,408 22,470 4,969,878 Salaries and benefits payable 6,785,522 63,334 6,848,856 Deposits payable 14,477 -- 14,477 Unearned revenue 10,012,951 -- 10,012,951 Accrued interest 13,993 231,250 245,243 Long-Term Liabilities: Due within one year 4,674,590 871,232 5,545,822 Due in more than one year 79,102,151 13,353,936 92,456,087 Total liabilities 105,551,092 14,542,222 120,093,314 NET ASSETS Invested in capital assets, net of related debt 263,205,333 7,162,066 270,367,399 Restricted for: General restrictions 39,777,184 -- 39,777,184 County service areas 6,677,241 -- 6,677,241 Debt service 9,448,490 -- 9,448,490 Landfill post-closure requirements -- 5,547,422 5,547,422 Unrestricted 35,430,215 9,326,821 44,757,036 Total net assets $ 354,538,463 $ 22,036,309 $ 376,574,772 The accompanying notes are an integral part of these financial statements. 13 COUNTY OF BUTTE Statement of Activities For the Fiscal Year Ended June 30, 2010 Program Revenues Fees, Fines, and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Functions/Programs Primary Government Governmental Activities: General government $ 25,115,218 $ 21,694,710 $ 16,852,886 $ -- Public safety 88,790,678 10,708,534 15,324,214 -- Public ways and facilities 30,009,178 2,225,165 1,836,542 20,924,224 Health and sanitation 72,502,065 5,756,094 46,543,314 -- Public assistance 143,688,838 676,610 141,750,799 -- Education 2,805,328 146,212 207,279 -- Recreation and cultural services 512,353 -- 60,000 -- Interest on long-term debt 2,499,474 -- -- -- Total Governmental Activities 365,923,132 41,207,325 222,575,034 20,924,224 Business-type activities: Sanitation 4,855,077 6,150,774 159,913 -- Totalbusiness-type activities 4,855,077 6,150,774 159,913 -- Total Primary Government $ 370,778,209 $ 47,358,099 $ 222,734,947 $ 20,924,224 General revenues: Taxes: Property taxes Sales and use taxes Other taxes and related revenues Grants and contributions not restricted to specific programs Unrestricted interest and investment earnings Other revenues Transfers Total general revenues and transfers Change in net assets Net assets -beginning, as restated Net assets -ending The accompanying notes are an integral part of these financial statements. 14 Net (Expenses) Revenues and Changes in Net Assets Primary Government Business- Governmental Type Activities Activities Total $ 13,432,378 (62,757,930) (5,023,247) (20,202,650 (1,261,429) (2,451,837) (452,353) (2,499,474) (81,216,549) $ 13,432,378 (62,757,930) (5,023,247) (20,202,650 (1,261,429) (2,451,837) (452,353) (2,499,474) (81,216,549) -- 1,455,610 1,455,610 - 1,455,610 1,455,610 (81,216,549) 1,455,610 (79,760,939) 49,822,100 -- 49,822,100 3,502,003 -- 3,502,003 1,010,109 -- 1,010,109 15,503,952 -- 15,503,952 3,218,361 463,350 3,681,711 4,521,606 -- 4,521,606 14,369 (14,369) -- 77,592,500 448,981 78,041,481 (3,624,049) 1,904,591 (1,719,458) 358,162,512 20,131,718 378,294,230 $ 354,538,463 $ 22,036,309 $ 376,574,772 The accompanying notes are an integral part of these financial statements. 15 o° li °~ o ~ ~ o o~~'°" o \U N'~ (This Page Intentionally Left Blank) 16 urr /~ o, 0 o ~~,o l'# o a ~_ o \o Basic Financial Statement- Fund Financial Statements UTT COUNTY OF BUTTE Balance Sheet Governmental Funds June 30, 2010 Public Behavioral Other General Welfare Health Health Road Governmental Fund Fund Fund Fund Fund Funds Total ASSETS Cash and investments $ 33,249,953 $ -- $ 7,036,676 $ 4,343,273 $ 11,399,422 $ 24,264,583 $ 80,293,907 Restricted Assets: Cash with fiscal agent 1,572,685 -- -- -- -- 4,833,425 6,406,110 Imprest cash 84,345 -- 500 -- 50 2,150 87,045 Due from other funds 1,344,851 830,072 6,842,006 -- -- 542,861 9,559,790 Accounts receivable 893,758 55,601 20,433 -- 55,396 245,781 1,270,969 Interest receivable 231,967 974 43,829 21,865 47,204 152,122 497,961 Due from other governments 3,849,761 9,485,398 1,790,229 8,815,124 6,331,516 2,234,925 32,506,953 Prepaid items 1,848 4,764 318 3,863 -- -- 10,793 Deposits with others 2,500 -- -- -- -- 297 2,797 Inventory 154,369 -- -- -- 284,270 -- 438,639 Long-term receivables -- -- -- -- -- 1,707,859 1,707,859 Total assets $ 41,386,037 $ 10,376,809 $ 15,733,991 $ 13,184,125 $ 18,117,858 $ 33,984,003 $ 132,782,823 LIABILITIES Liabilities: Due to other funds $ 542,814 $ 1,202,758 $ -- $ 6,846,453 $ 190 $ 966,580 $ 9,558,795 Accounts payable 1,429,046 435,316 192,877 1,983,739 364,147 476,845 4,881,970 Accrued payroll 2,963,259 1,552,600 505,370 1,094,394 300,333 369,566 6,785,522 Deposits payable 14,477 -- -- -- -- -- 14,477 Deferred revenue 1,601,430 3,195,825 124,643 4,458,234 2,476 2,338,202 11,720,810 Total liabilities 6,551,026 6,386,499 822,890 14,382,820 667,146 4,151,193 32,961,574 FUND BALANCES Reserved for: Encumbrances 2,348,768 1,499,869 1,172,798 4,728,929 1,063,817 2,197,542 13,011,723 Imprest cash 84,345 -- 500 -- 50 2,150 87,045 Prepaid items 1,848 4,764 318 3,863 -- -- 10,793 Deposits with others 2,500 -- -- -- -- 297 2,797 General restrictions 13,844,851 328,955 6,942,394 1,016,781 7,589,463 10,054,740 39,777,184 Debt service 1,572,685 -- -- -- -- 7,875,805 9,448,490 Inventories 154,369 -- -- -- 284,270 -- 438,639 Unreserved: Designated for: Special revenue funds: County service areas -- -- -- -- -- 4,460,824 4,460,824 General fund 115,000 -- -- -- -- -- 115,000 Undesignated, reported in: General fund 16,710,645 -- -- -- -- -- 16,710,645 Special revenue funds -- 2,156,722 6,795,091 (6,948,268) 8,513,112 4,690,330 15,206,987 Capital projects funds -- -- -- -- -- 551,122 551,122 Total fund balances 34,835,011 3,990,310 14,911,101 (1,198,695) 17,450,712 29,832,810 99,821,249 Total liabilities and fund balances $ 41,386,037 $ 10,376,809 $ 15,733,991 $ 13,184,125 $ 18,117,858 $ 33,984,003 $ 132,782,823 The accompanying notes are an integral part of these financial statements. 17 COUNTY OF BUTTE Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets -Governmental Activities June 30, 2010 Fund Balance -total governmental funds $ 99,821,249 Amounts reported for governmental activities in the statement of net assets are different because Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. These assets consist of Land 3,500,403 Construction in progress 321,496 Infrastructure 592,478,095 Structures and improvements 63,560,157 Equipment 50,720,618 Less accumulated depreciation (442,243,167) Total capital assets 268,337,602 In governmental funds, other long-term assets are not available to pay for current-period expenditures: Net pension asset 51,451,536 Loans receivable 1,707,859 Governmental funds report the effect of issuance costs and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the long-term debt issuance costs. 321,939 Interest payable on long-term debt does not require current financial resources, therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (13,993) Internal service funds are used by the County to charge the cost of liability, malpractice, and worker's compensation insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. 11,525,012 Long-term liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities are reported in the statement of net assets. Certificates of participation (1,945,000) Bonds payable (50,402,721) Notes payable (2,277,811) Capital leases (922,273) Compensated absences (13,864,797) Other post-employment benefits (9,200,139) Total long-term liabilities (78,612,741) Net assets of governmental activities $ 354,538,463 The accompanying notes are an integral part of these financial statements. 18 COUNTY OF BUTTE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2010 Public Behavioral General Welfare Health Health Other Governmental Road Funds Total REVENUES: Taxes $ 53,488,481 $ -- $ -- $ -- $ -- $ 845,731 $ 54,334,212 Licenses and permits 2,916,349 -- 151,440 -- 55,523 -- 3,123,312 Fines, forfeits and penalties 2,811,595 -- 379,822 126,785 15,787 501,398 3,835,387 Revenue from use of money and property 1,654,091 (22,606) 206,311 114,955 74,017 739,501 2,766,269 Aid from other governments 29,620,232 133,906,516 16,582,555 45,464,711 20,924,224 12,485,750 258,983,988 Charges for services 24,604,664 559,032 2,771,866 2,326,000 2,153,855 1,833,209 34,248,626 Other 2,616,624 1,489,379 13,073 87,690 20,157 294,683 4,521,606 Total revenues 117,712,036 135,932,321 20,105,067 48,120,141 23,243,563 16,700,272 361,813,400 EXPENDITURES: Current: General government 21,429,481 -- -- -- -- 2,008,706 23,438,187 Public protection 69,603,687 1,066,647 -- -- -- 14,593,968 85,264,302 Public ways and facilities -- -- -- -- 17,372,010 811,420 18,183,430 Health and sanitation -- -- 22,671,600 48,351,356 -- 587,497 71,610,453 Public assistance 305,766 134,231,823 -- -- -- 7,846,222 142,383,811 Education 272,314 -- -- -- -- 2,441,763 2,714,077 Recreation and cultural services 216,320 -- -- -- -- 128,486 344,806 Debt Service: Principal 43,175 -- -- -- -- 724,035 767,210 Interest 337,411 -- -- -- -- 2,061,291 2,398,702 Total expenditures 92,208,154 135,298,470 22,671,600 48,351,356 17,372,010 31,203,388 347,104,978 Excess (deficiency) of revenues over (under) expenditures 25,503,882 633,851 (2,566,533) (231,215) 5,871,553 (14,503,116) 14,708,422 OTHER FINANCING SOURCES (USES): Proceeds from sale of capital assets 35,779 -- -- -- 33,115 -- 68,894 Transfers in 1,606,125 695,658 724,304 424,727 2,428,505 15,795,427 21,674,746 Transfers out (16,592,995) (356,371) (124,024) (234,310) (74,297) (3,143,063) (20,525,060) Total other financing sources (uses) (14,951,091) 339,287 600,280 190,417 2,387,323 12,652,364 1,218,580 Net change in fund balances 10,552,791 973,138 (1,966,253) (40,798) 8,258,876 (1,850,752) 15,927,002 Fund balance -beginning 24,464,463 3,019,173 16,877,029 (1,157,897) 9,191,836 31,703,736 84,098,340 Prior period adjustments (182,243) (2,001) 325 -- -- (20,174) (204,093) Fund balance -beginning, restated 24,282,220 3,017,172 16,877,354 (1,157,897) 9,191,836 31,683,562 83,894,247 Fund balance -ending $ 34,835,011 $ 3,990,310 $ 14,911,101 $ (1,198,695) $ 17,450,712 $ 29,832,810 $ 99,821,249 The accompanying notes are an integral part of these financial statements. 19 COUNTY OF BUTTE Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities -Governmental Activities For the Fiscal Year Ended June 30, 2010 Net change to fund balance -total governmental funds 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 capitalized and allocated over their estimated useful lives and reported as depreciation expense. 15,927,002 Capital outlay expenditures are therefore added back to fund balances 11,063,128 Depreciation expense not reported in governmental funds (24,168,324) (13,105,196) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds statements 19,222 Governmental funds report the effect of the pension asset when first paid, whereas the amount is deferred and amortized in the statement of activities. Decrease in pension asset (1,051,478) Debt proceeds provide current financial resources to governmental funds; however, issuing debt increases long-term liabilities in the statement of net assets. Costs associated with the issuance of long-term debt are reported as expenditures in the governmental funds, but in the statement of net assets, the costs are deferred and amortized throughout the period during which the related debt is outstanding. Repayment of debt principal is an expenditures in the governmental funds, but in the statement of net assets the repayment reduces long-term liabilities Principal payments 767,334 Amortization expense of costs of issuance not reported in governmental funds (101,751) Net adjustment 665,583 Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available (net change). Interest payable 979 Other post-employment benefits (3,184,916) Compensated absences (798,193) (3,982,130) Internal service funds are used by the County to charge the costs of liability, malpractice, and worker's compensation insurance to individual funds. The net revenue/expense of internal service funds is reported with governmental activities. (2,097,052) Change in net assets of governmental activities $ (3,624,0491 The accompanying notes are an integral part of these financial statements. 20 COUNTY OF BUTTE Statement of Fund Net Assets Proprietary Funds June 30, 2010 Governmental Business-ty pe Activities Activities Internal Service ASSETS Landfill Total Funds Current assets: Cash and Investments S 16,312,082 S 16,312,082 S 16,484,878 Cash with fiscal agent 2,199,928 2,199,928 42,353 Imprest cash 2,800 2,800 -- Due from other funds -- -- 119,371 Accounts receivable 269,774 269,774 -- Interest receivable 99,523 99,523 101,589 Deposits with others -- -- 90,000 Prepaid items -- -- 22,815 Total current assets 18,884,107 18,884,107 16,861,006 Noncurrent assets: Deferred debt issuance costs 273,113 273,113 -- Capital Assets: Nondepreciable: Land 430,939 430,939 -- Construction in progress 15,671,856 15,671,856 -- Depreciable: Structures and improvements 121,695 121,695 -- Equipment 4,139,249 4,139,249 19,582 Accumulated depreciation (2,941,433) (2,941,433) (6,767) Total noncurrent assets 17,695,419 17,695,419 12,815 Total assets 36,579,526 36,579,526 16,873,821 LIABILITIES Current liabilities Due to other funds 995 995 119,371 Accounts payable 22,470 22,470 65,438 Accrued salaries and benefits 63,334 63,334 -- Interest payable 231,250 231,250 -- Compensates absences 38,000 38,000 -- COP payable, current portion 763,545 763,545 -- Claims and judgments, current portion -- -- 2,400,000 Capital leases, current portion 19,687 19,687 -- Loans payable, current portion 50,000 50,000 -- Total current liabilities 1,189,281 1,189,281 2,584,809 Noncurrent liabilities: Compensates absences 133,813 133,813 -- Loans payable, less current portion 250,000 250,000 -- Claims and judgments -- -- 2,764,000 COP payable, less current portion 10,685,448 10,685,448 -- Landfill closure/post-closure care costs 2,284,675 2,284,675 -- Total noncurrent liabilities 13,353,936 13,353,936 2,764,000 Total liabilities 14,543,217 14,543,217 5,348,809 NET ASSETS Invested in capital assets, net of related debt 7,162,066 7,162,066 12,815 Restricted 5,547,422 5,547,422 -- Unrestricted 9,326,821 9,326,821 11,512,197 Total net assets S 22,036,309 S 22,036,309 S 11,525,012 The accompanying notes are an integral part of these financial statements. 21 COUNTY OF BUTTE Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds For the Fiscal Year Ended June 30, 2010 Governmental Business-type Activities Activities Service Landfill Total Funds OPERATING REVENUES: Charges for services $ -- $ -- $ 7,576,809 Landfill fees 6,146,749 6,146,749 -- Miscellaneous 4,025 4,025 170,253 Total operating revenues 6,150,774 6,150,774 7,747,062 OPERATING EXPENSES: Operations and management 2,418,755 2,418,755 -- Salaries and employee benefits 1,401,465 1,401,465 630,478 Services and supplies -- -- 3,464,447 Premiums, claims and judgments -- -- 3,424,383 Other charges -- -- 402,159 Landfill closure/postclosure care costs 136,930 136,930 -- Depreciation and amortization 435,427 435,427 1,305 Total operating expenses 4,392,577 4,392,577 7,922,772 OPERATING INCOME (LOSS) 1,758,197 1,758,197 (175,710) Nonoperating Revenues (Expenses): Intergovernmental 159,913 159,913 -- Interest income 463,350 463,350 452,092 Interest expense (462,500) (462,500) -- Total nonoperating revenues (expenses) 160,763 160,763 452,092 NET INCOME BEFORE AND TRANSFERS 1,918,960 1,918,960 276,382 Transfers out (14,369) (14,369) (2,373,434) Change in net assets 1,904,591 1,904,591 (2,097,052) Net assets, beginning of year 20,131,718 20,131,718 13,622,064 Net assets, end of year $ 22,036,309 $ 22,036,309 $ 11,525,012 The accompanying notes are an integral part of these financial statements 22 COUNTY OF BUTTE Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2010 Governmental CASH FLOWS FROM OPERATING ACTIVITES: Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Internal activities -payments from (to) other funds Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Aid from other governmental units Principal repayment on loans payable Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Payments related to the acquisition of capital assets Principal repayment on COP payable Interest paid Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET ASSETS Cash and investments Cash with fiscal agent Imprest cash Business-type Activities Activities Internal Service T.anrlfill Tntal Fnnrlc $ 6,119,006 $ 6,119,006 $ 7,998,840 (3,082,656) (3,082,656) (7,083,477) (1,376,520) (1,376,520) (1,404,855) (381,850) (381,850) (125,543) 1,277,980 1,277,980 (615,035) 159,913 159,913 -- (50,000) (50,000) -- (14,369) (14,369) (553,349) 95,544 95,544 (553,349) (624,059) (624,059) -- (738,545) (738,545) -- (462,500) (462,500) -- (1,825,104) (1,825,104) -- 493,280 493,280 486,632 493,280 493,280 486,632 41,700 41,700 (681,752) 18,473,110 18,473,110 17,208,983 $ 18,514,810 $ 18,514,810 $ 16,527,231 $ 16,312,082 $ 16,312,082 $ 16,484,878 2,199,928 2,199,928 42,353 2,800 2,800 -- $ 18,514,810 $ 18,514,810 $ 16,527,231 The accompanying notes are an integral part of these financial statements. continued 23 COUNTY OF BUTTE Statement of Cash Flows (continued) Proprietary Funds For the Fiscal Year Ended June 30, 2010 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in assets and liabilities: (Increase) decrease in: Accounts receivable Due from other funds Inventory Prepaid expenses and other assets Increase (decrease)in: Accounts payable Due to other funds Accrued salaries Compensated absences Landfill closure/post-closure cost Claims and judgments Net Cash Provided (Used) by Operating Activities Business-type Activities Governmental Internal Service T-- $ 1,758,197 $ 1,758,197 $ (175,710) 435,427 435,427 1,305 (27,743) (27,743) 251,778 15,163 15,163 945,027 -- -- 101,692 -- -- 30,150 (663,901) (663,901) (283,330) (401,038) (401,038) (1,070,570) 6,658 6,658 (181,445) 18,287 18,287 (592,932) 136,930 136,930 -- -- -- 359,000 $ L277,980 $ L277,980 $ (615,035) The accompanying notes are an integral part of these financial statements. 24 COUNTY OF BUTTE Statement of Fiduciary Net Assets Fiduciary Funds June 30, 2010 ASSETS Cash and investments Imprest cash Interest receivable Property tax receivable Total assets LIABILITIE S Agency funds held for others Total liabilities Investment Trust $ 229,123,745 8,396 1,296,262 230,428,403 Agency Funds $ 44,648,264 73,194 16,469,257 61,190,715 61,190,715 $ 61,190,715 NET ASSETS Held in trust for pool participants Total net assets 230,428,403 $ 230,428,403 The accompanying notes are an integral part of these financial statements. 25 COUNTY OF BUTTE Statement of Changes in Fiduciary Net Assets Investment Trust Fund For the Fiscal Year Ended June 30, 2010 Additions: Contributions to investment pool $ 1,275,493,131 Interest and investment income 5,398,727 Total additions 1,280,891,858 Deductions: Distributions from investment pool (1,331,481,452) Total deductions (1,331,481,452) Change in net assets (50,589,594) Net assets, beginning 281,017,997 Net assets, ending $ 230,428,403 The accompanying notes are an integral part of these financial statements. 26 ~V a '~ ~ c ~ll~ a ~ _ ~` o _~ „_ - - c ._-=- ~ _=~~_: - ~ ?-~` ~(~ ~ 0 ~o 0 of Basic Financial Statements - Notes to the Basic Financial Statements TT COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies A. The Financial Reporting Entity The County of Butte (the County), which was incorporated as a County in 1850 as one of the State's original 27 counties, is a legal subdivision of the State of California charged with governmental powers. The County's powers are exercised through a Board of Supervisors, which, as the governing body of the County, is responsible for the legislative and executive control of the County. As required by accounting principles generally accepted in the United States of America, these financial statements present the government and its component units; legally separate entities for which the County is considered to be financially accountable. Financial accountability is demonstrated by the County Board of Supervisors acting as the governing board for each of the component units. Blended component units, although legally separate entities are, in substance, part of the County's operations: therefore data from these units are combined with data of the primary government. Each blended component unit has a June 30, 2010 fiscal year-end. In evaluating how to define the County for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Governmental Accounting Standards Board (GASB) Statement No. 14 "The Financial Reporting Entity." Based on the criteria established by GASB 14, as amended by GASB Statement No. 39, the reporting entity also includes the following blended component units, which are Special Districts under control of the Board of Supervisors: County Service Area (CSA) -Lighting CSA #11 Durham CSA #14 East Chico CSA #17 South Oroville -Las Plumas Park CSA #16 West Chico CSA #12 Stirling City Lighting CSA #75 North Park CSA #27 Richvale CSA #36 Glen Haven CSA #33 Oro-Wyandotte CSA #62 Rancho De Thunder CSA #67 Vista Del Cerro CSA #103 Morris Subdivision CSA #92 Rosewood Subdivision CSA #78 Woodside CSA #85 Carriage Manor CSA # 161 Mulberry Street 27 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) A. The Financial Reporting Entity (continued) CSA -Drainage & Lighting CSA #47 East and Guynn CSA #76 Quail Run CSA #79Big Chico Creek Estates CSA #154 Forebay Vista CSA #96 Silvertree Subdivision CSA #97 Stoney Brook CSA #101 Carriage Estates Subdivision CSA #102 Meadowlark Acres CSA #116 Pistachio Grove Estates CSA #119 South Fork Estates CSA #125 Willow Bend Subdivision CSA #128 Wildflower Estates Subdivision CSA #129 Orchard House Estates CSA #133 Ceres Avenue Subdivision CSA #120 Oak Way Park CSA #177 Blossom Estates CSA #181 Palm Crest Village Subdivision CSA - Drainage CSA #4 Sierra Del Oro CSA #87 Keefer Road/Rock Creek CSA #23 Pleasant Valley CSA #24 Chico -Mud Creek CSA #25 Shasta Union CSA #92 Copley Acres CSA #98 Oro Monte Estates CSA -Sewer CSA #21 Oakridge CSA #82 Stirling City CSA #141 Mountain Oaks Subdivision CSA -Lighting & Maintenance CSA #68 Crestwood CSA #69 Lindo Gardens CSA #71 Joshua Tree #2 28 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) A. The Financial Reporting Entity (continued) CSA -Other CSA #90 Southgate Acres Drainage and Fire Protection CSA #26 Thermalito Sewer and Drainage CSA #94 Sycamore Valley Sewer, Lighting, and Drainage CSA #37 Gridley -Biggs Ambulance CSA #31 Biggs (Schohr's) Swimming Pool -Recreation CSA #34 Gridley Swimming Pool -Recreation CSA # 114 County of Butte -Nitrate Study Plan CSA #131 Walnut Manor -Lighting, Drainage, and Landscape CSA #137 Durham-Dayton Industrial Partners for Extended Structural Fire Protection CSA # 149 Biggers Subdivision -Lighting, Drainage, and Snow removal CSA #158 Ishi Valley Estates- Lighting, Drainage, and Fire CSA # 164 County of Butte -Animal Control CSA # 165 Justin Manor Subdivision -Lighting, Drainage, and Fire CSA #135 Keefer Creek Estates -Lighting, Drainage, and Sewer CSA #172 Autumn Park -Lighting, Drainage, and Fire CSA #173 Melrose Estates -Lighting, Drainage, and Fire CSA #174 Durham Land Estates -Lighting, Drainage, and Fire CSA # 169 Pheasant Landing # 1 Subdivision and #2 -Lighting, Drainage, and Fire CSA #169 Pheasant Landing #3 Subdivision -Lighting, Drainage, and Fire CSA # 169 Zone #4 of Sierra Moon Subdivision # 1 -Lighting and Drainage CSA #178 Twin Palms Subdivision -Lighting, Drainage, and Fire CSA # 179 Chambers & Speedway Subdivision -Lighting, Drainage, and Fire CSA # 163 Thorntee Industrial Park -Lighting, Drainage, and Fire CSA #176 Pheasant Landing Estates #3 -Lighting, Drainage, and Fire CSA # 180 Red Hawk Ranch Subdivision -Lighting, Drainage, and Fire CSA #183 Rare Earth Estates -Lighting, Drainage, and Fire Excluded from the Reportin.~X Local Board Governed Districts and School Districts: These potential component units have been excluded from the reporting entity. They are legally separate primary governmental units. The financial reporting for these governmental entities, which are independent of the County, are limited to the total amount for cash and investments and the related fiduciary responsibilities of the County for disbursement of these assets. Activities of school districts and local board governed districts are administered by boards which are separately elected and which are independent of the County Board of Supervisors. The following local board governed districts and school districts have been excluded from the County's financial statements: 29 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) A. The Financial Reporting Entity (continued) Protection to Persons & Property El Medio Fire District DWR - Maintenance Area #5 DWR - Maintenance Area #7 DWR - Maintenance Area # 13 DWR - Maintenance Area # 16 Cemeterv Bangor Cemetery Gridley-Biggs Cemetery Kimshew Cemetery Oroville Cemetery Paradise Cemetery Pine Creek Cemetery Thompson Flat Cemetery Upham Cemetery Recreation Chico Area Recreation & Park Durham Recreation & Park Feather River Recreation & Park Paradise Recreation & Park Richvale Recreation & Park Other Districts Butte County Association of Governments Butte County Resource Conservation School Districts Butte County Fair Buzztail Community Services Berry Creek Community Services Richardson Springs Community Services Drainage Butte Creek Drainage Drainage District # 1 Drainage District #2 Drainage District # 100 Drainage District #200 Reclamation District #833 Rock Creek Reclamation District Sacramento River Reclamation District Health & Sanitation Butte County Mosquito Abatement Durham Mosquito Abatement Oroville Mosquito Abatement Richvale Sanitary Operating These entities have separate elected boards and provide services to residents, generally within the geographic boundaries of the County. In addition, these entities are excluded from the reporting entity because they are not financially accountable to the County. 30 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) B. Basis of Presentation Government-Wide Financial Statements The statement of net assets and statement of activities display information about the primary government (the County) and its blended 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 demonstrates the degree to which the program expenses of a given function are offset by program revenues. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) fees, fines, and 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 funds are separately aggregated and reported as other governmental funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. 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. GASB Statement No. 34 defines major funds and requires that the County's major governmental and proprietary funds are identified and presented separately in the fund financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund-type. Major funds are defined as funds that have assets, liabilities, revenues, or expenditures/expenses equal to or greater than ten percent of their fund-type total and five percent of all fund-type totals. The General Fund is always a major fund. The County may also select other funds it believes should be presented as major funds. 31 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) B. Basis of Presentation (continued) The County reports the following major governmental funds: • The General Fund 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 and recreation services. • The Welfare Fund was established to account for the activities of the Butte County Department of Employment and Social Services. The department administers the CalWorks program, Adult and Children's Protection Services and various other State, Federal and local assistance programs. • The Public Health Fund was established to account for the activities of the Butte County Department of Public Health. The department provides a wide range of services designed to protect and enhance the well being of the community. • The Behavioral Health Fund was established to account for the activities of the Butte County Department of Behavioral Health. The department provides a comprehensive continuum of services meeting community needs related to mental health and substance abuse problems. • The Road Fund provides for planning, design, construction, maintenance, and administration of County transportation planning activities. Revenues consist primarily of the County's share of state highway user taxes and are supplemented by federal funds. The County reports the following major enterprise funds: • The Landfill Fund was established to account for the County's costs of providing landfill and related waste disposal services to the citizens of Butte County in both the unincorporated and incorporated areas of the County. The County reports the following additional fund types: Internal Service Funds account for the County's risk management on a cost- reimbursementbasis. Internal Service Funds are presented in summary form as part of the proprietary fund financial statements. In the government-wide financial statements, the changes in net assets at the end of the fiscal year, as presented in the statements of activities, were allocated to the user functions of the governmental activities, to reflect the entire activity for the year. Since the predominant users of the internal services are the County's governmental activities, the asset and liability balances of the internal service funds are consolidated into the governmental activities column at the government-wide level. 32 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Si~niflcant Accounting Policies (continued) B. Basis of Presentation (continued) • The Investment Trust Fund accounts for the assets of legally separate entities that deposit cash with the County Treasurer in an investment pool, which commingles resources in the investment portfolio for the benefit of all participants. These entities include school and community college districts, other special districts governed by local boards, regional boards and authorities and pass through funds for tax collections for cities. The Agency Funds are custodial in nature and do not involve measurement of the results of operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. These funds account for assets held by the County as an agent for other government units. These units include Butte County SB-325 and SB-620, and other special districts governed by local boards, regional boards and authorities and pass through funds for tax collections for cities. C. Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. 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 tax 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 are reported using the current financial measurement focus and modified accrual basis of accounting. Under this method, revenues are recognized when "susceptible to accrual" (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means that revenues are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Property tax revenues are recognized in the current year if they are collected within 60 days of fiscal year end. For all other revenues, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenues not considered available are recorded as deferred revenue. The County's other primary revenue sources: investment income, intergovernmental revenues and charges for services have been treated as "susceptible to accrual" under the modified accrual basis. Licenses and permits, fines, forfeitures and penalties, and other revenue are not considered "susceptible to accrual" under the modified accrual basis and are recorded as revenues when received. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded when payment is due. 33 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) C. Basis of Accounting (continued) When both restricted and unrestricted net assets are available, unrestricted resources are used only after the restricted resources are depleted. For its proprietary funds, the County has elected under GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements as well as any applicable pronouncements of the Financial Accounting Standards Board, the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 30, 1989 unless those pronouncements conflict with or contradict GASB pronouncements. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), are accounting principles generally accepted in the United States of America. D. Cash and Cash Equivalents The County maintains a Cash and Investment Pool (Pool) that is available for use by all County funds, and agencies outside of the County reporting entity may participate in the Pool. The participation of these agencies is involuntary, except for the Butte County Fair. The outside agencies participating in the Investment Pool are Superior Court, Butte County Fair, Autonomous Special Districts, Schools, Community College Districts, and the Butte County Association of Governments. The pool is not registered as an investment company with the Securities and Exchange Commission (SEC) nor is it an SEC Rule 2a7-like pool. California Government Code, the County's Treasury Oversight Committee, and the Board of Supervisors annually set forth the investment policy that the County Treasurer must follow. State statutes and the County's investment policy authorize the County Treasurer to invest in instruments described in California Government Code Section 53601 and 53635, including but not limited to: U.S. Government Treasury and Agency Securities, bankers' acceptances, commercial paper, corporate bonds and notes, repurchase agreements and the State Treasurer's Local Agency Investment Fund (LAIF). In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools, investments held by the County Treasurer are stated at fair value. The fair value of investments in the Pool is determined monthly based upon quoted market prices. The County has not provided nor obtained any legally binding guarantees during the fiscal year ended June 30, 2010 to support the values of shares in the Pool. However, management believes that the investments in the Pool are of high quality and that the risk of participation in the Pool is negligible. The Pool is subject to oversight by the Treasury Oversight Committee, as recommended by the California Debt and Investment Advisory Commission. 34 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) D. Cash and Cash Equivalents (continued) The Pool values participants' shares on an amortized cost basis. Specifically, the Pool distributes income to participants quarterly based on their relative participation during the month, which is calculated based on (1) realized investment gains and losses computed on an amortized cost basis, (2) interest income based on stated rates (both paid and accrued), (3) amortization of discounts and premiums on a straight-line basis, and (4) investment and administrative expenses. This method differs from the fair value method used to value investments in these financial statements because the amortized cost method is not designed to distribute to participants all unrealized gains and losses in the fair value of the Pool's investments. Investment income related to investments reported in certain funds is assigned to other funds based upon legal or contractual provisions. State law requires that the County Treasurer hold all operating monies of the County, school districts and certain special districts. Collectively, these mandatory deposits constituted approximately 92.2% of the funds on deposit in the County Treasury. For purposes of the accompanying statement of cash flows -Proprietary Funds, the County 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. Inventories and Prepaid Items Inventories are valued at cost, which is determined on a first-in, first-out basis, and consist primarily of expendable supplies held for consumption. The cost is recorded as expenditure when the items are used. In the governmental funds balance sheet, there is a reservation of fund balance equal to the inventory balance as these amounts are not available for appropriation. Payments made for services that will benefit future accounting periods are recorded as prepaid items. In the governmental fund types, there is a reservation of fund balance equal to the amount of prepaid items, since these amounts are not available for appropriation. F. Property Taxes Property taxes attach as an enforceable lien on January 1. Secured taxes are levied on July 1 and are payable in two installments due by December 10 and April 10. All general property taxes are then allocated by the County Auditor-Controller's Office to the various taxing entities per the legislation-implementing Proposition 13. The method of allocation used by the County is subject to review by the State of California. 35 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) F. Property Taxes (continued) Alternative Method of Distribution of Tax Levies The County utilizes the alternative method of property tax distribution, whereby the County, through the legally required Tax Resource Agency Fund purchases the current secured unpaid taxes remaining at year-end from participating agencies. In return, the Tax Resource Agency Fund records a tax receivable and receives the delinquent secured taxes. The Tax Loss Reserve Agency Fund receives delinquent penalties and redemption interest accruing to delinquent collections related to participating agencies. The participating agencies, including the County, the special districts, and the school districts, in turn, receive their full tax distribution with no liability for uncollected taxes to the Tax Resource Agency Fund. Therefore, for participating agencies, revenue is measurable and available and is recorded in the period the payment of current secured unpaid taxes is received. The County is required to create a tax loss reserve fund (an agency fund) under one of two alternative methods: 1) one percent of the total amount of taxes and assessments levied on the secured roll for the year or 2) twenty-five percent of the total delinquent secured taxes and assessments as calculated at the end of the fiscal year. The County is using one percent of the total amount of taxes and assessments levied on the secured roll for the year to establish its tax loss reserve. G. Loans Receivable Loans receivable relate to the Housing and Community Development Program funded by federal and state monies. Loans receivable are collateralized by deeds of trust. Proceeds from the collection of the loans receivable and resale of assets held for sale are restricted by the terms of the grant and, accordingly, are offset by a fund balance reserve which indicates that they do not constitute available spendable resources. No amount has been provided as an allowance for doubtful accounts because in the opinion of management all material amounts are fully collectible. H. Capital Assets Capital assets (including infrastructure) are recorded 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 assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, bridges, water/sewer, lighting system, drainage systems, and flood control. 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) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide statements and the proprietary funds. 36 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) H. Capital Assets (continued) The estimated useful lives are as follows: Infrastructure 20 to 50 years Structures and improvements 20 to 50 years Equipment 3 to 25 years The County has five networks of infrastructure assets -roads, water/sewer, lighting, drainage, and flood control Infrastructure has been included in the County's capital assets at historical cost and related depreciation. I. Compensated Absences The liability for compensated absences reported in the government-wide and proprietary fund statements consists of unpaid, accumulated leave balances. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. Interfund Receivables and Payables Interfund transactions are reflected as either loans, services provided, reimbursements, or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., 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 fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation. K. Use of Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 37 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) L. Future Governmental Accounting Standards Board Statements Governmental Accounting Standards Board Statement No. 54 In March 2009, GASB issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which is effective for the year ending June 30, 2011. The objective of this statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. M. Presentation of financial information related to County fiduciary responsibilities The basic financial statements also include an Investment Trust fund to account for cash and investments held by the County Treasurer for numerous self-governed school and special districts. The financial reporting for these governmental entities, which are independent of the County, is limited to the total amount of cash and investments and other assets, and the related fiduciary responsibility of the County for disbursement of these assets. School and special district boards that are separately elected and that are independent of the County Board of Supervisors, administer activities of the school districts and special districts. The County Auditor-Controller makes disbursements upon the request of the responsible self-governed special district officers. The Board has no effective authority to govern, manage, approve budgets, assume financial accountability, establish revenue limits, or appropriate surplus funds available in these entities. Therefore, these entities are fiscally independent of the County. Five cities and numerous self- governed special districts provide services to the residents of the County. The operations of these entities have been excluded from the basic financial statements since each entity conducts its own day-to-day operations and is controlled by its own governing board. N. Net Assets The government-wide financial statements and proprietary fund financial statements utilize a net assets presentation. Net assets are categorized as invested in capital assets (net of related debt), restricted net assets, or unrestricted net assets. Invested in Capital Assets, Net of Related Debt- This category groups all capital assets, including infrastructure, into one component of net assets. 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 Assets- This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or legislation. Unrestricted Net Assets- This category represents net assets of the County, not restricted for any project or other purpose. 38 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 1. Summary of Significant Accounting Policies (continued) O. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not appropriable or legally restricted for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 2. Cash and Investments Cash and investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of net assets: Primary government: Cash and investments $ 113,090,867 Cash with fiscal agents 8,648,391 Imprest cash 89,845 Fiduciary funds: Cash and investments 273,772,009 Imprest cash 8,396 Total cash and investments 395.609.508 Cash and investments as of June 30, 2010 consist of the following: Cash on hand $ 140,850 Deposits with financial institutions 8,639,835 Investments 411,151,755 Outstanding warrants (24,322,932) Total cash and investments 395.609.508 Cash with fiscal agents, which represents investments of debt proceeds held by bond trustees, is restricted. Investments Authorized by the California Government Code and the County's Investment Policy 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 California Government Code (or the County's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the County, rather than the general provisions of the California Government Code or the County's investment policy. 39 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 2. Cash and Investments (continued) Investments Authorized by the California Government Code and the County's Investment Policy (continued) Maximum Maximum Authorized Maximum Percentage Investment Investment Tvne Maturi of Portfolio in One Issuer Local Agency Bonds 5 years None None U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years None None Banker's Acceptances 180 days 40% 30% Commercial Paper 270 days 25% 10% Negotiable Certificates of Deposit 5 years 30% None Repurchase Agreements 1 year 20% None Reverse Repurchase Agreements 92 days 20% of base value None Medium-Term Notes 5 years 30% None Money Market Mutual Funds N/A 20% 10% Mortgage Pass-Through Securities 5 years 20% None County Pooled Investment Funds N/A None None Local Agency Investment Fund (LAIF) N/A None None JPA Pools (other investment pools) N/A None None Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the County's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Authorized Maximum Percentage Investment Investment Tvpe Maturity Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker's Acceptances 180 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Local Agency Investment Fund (LAIF) None None None 40 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 2. Cash and Investments (continued) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the County manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the County's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the County's investments by maturity: Investment Type Fair Value Less than One year One to Two years Remaining Maturity Two to Three years Three to Four years Four to Five years With Treasurer: FAMCA $ 15,303,564 $ 5,087,319 $ 10,216,245 $ -- $ -- $ -- FFCB 43,320,759 10,939,853 12,510,281 5,434,375 3,259,688 11,176,563 FHLB 95,640,925 20,406,880 24,260,000 28,543,732 16,242,813 6,187,500 FHLMC 29,254,556 8,555,268 1,082,500 2,169,914 -- 17,446,875 FNMA 31,221,563 3,117,188 -- -- -- 28,104,375 TVA 8,830,171 -- 3,333,966 -- 5,496,205 -- Cal Trust 20,283,688 20,283,688 -- -- -- -- LAIF 143,053,332 143,053,332 -- -- -- -- MTN 15,609,695 -- 15,609,695 -- -- -- Money Market Funds 59,049 59,049 -- -- -- -- Total with Treasurer 402,577,301 211,502,576 67,012,687 36,148,021 24,998,705 62,915,312 With fiscal agents: Money Market Funds 2,831,344 2,831,344 -- -- -- -- FHLB 412,431 -- -- -- 412,431 -- FNMA 1,005,940 -- -- -- -- 1,005,940 LAIF 4,324,738 4,324,738 -- -- -- -- Total with fiscal agent 8,574,453 7,156,082 -- -- 412,431 1,005,940 Total investments $ 411,151,755 $ 218,658,658 $ 67,012,687 $ 36,148,021 $ 25,411,136 $ 63,921,252 Disclosures Relating to Credit Risk Generally, 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. Presented below is the minimum rating required by (where applicable) the California Government Code, the County's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type. 41 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 2. Cash and Investments (continued) Disclosures Relating to Credit Risk (continued) FHI,B FHI,MC FNMA TVA Cal Trust LAIF M'I'N MMF Held by bond trustee: Money Market FHI,B FNMA LAIF 95,640,925 N/A 95,640,925 -- -- 29,254,556 N/A 29,254,556 -- -- 31,221,563 N/A 31,221,563 -- -- 8,830,171 N/A 8,830,171 -- -- 20,283,688 N/A -- 20,283,688 -- 143,053,332 N/A -- -- 143,053,332 15,609,695 N/A 15,609,695 -- -- 59,049 A 59,049 -- -- 2,831,344 A 2,831,344 -- -- 412,431 N/A 412,431 -- -- 1,005,940 N/A 1,005,940 -- -- 4,324,738 A -- -- 4,324,738 Total $ 411,151,755 Concentration of Credit Risk $ 241,440,622 $ 20,283,688 $ 149,427,445 The investment policy of the County contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total County investments are as follows: Issuer Investment Type Federal Home Loan Bank Federal agency securities Federal Farm Credit Bank Federal agency securities Federal National Mortgage Assoc. Federal agency securities Federal Home Loan Mortgage Corp. Federal agency securities Reported Amount $ 95,640,925 43,320,759 31,221,563 29,254,556 42 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 2. Cash and Investments (continued) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) 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. The California Government Code and the County's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure County deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. Investment in State Investment Pool The County is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State 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 (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The fair value of the County's investment in this pool is reported in the accompanying financial statements at amounts based upon the County's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Investment Trust of California Joint Powers Authority Pool The County Treasurer's Pool maintains an investment in the Investment Trust of California Joint Powers Authority Pool ("CalTRUST"). CalTRUST is not registered with the Securities and Exchange Commission as an investment company, but is overseen by a Board of Trustees composed of officials of the public agencies that participate in Ca1TRUST. The fair value of the County's position in the pool is approximately the same as the value of the pool shares. 43 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 2. Cash and Investments (continued) Treasury Investment Pool Condensed Financial Information for the Treasurer's Investment Pool In lieu of separately issued financial statements for the Treasurer's investment pool, condensed financial information is presented below as of and for the fiscal year ended June 30, 2010: Statement of Net Assets Net Assets held for pool participants 386.862.876 Equity of internal pool participants $ 157,739,131 Equity of external pool participants (voluntary and involuntary) 229,123,745 Total Equity 386.862.876 Statement of Changes in Net Assets Net Assets held for pool participants at July 1, 2009 $ 415,525,184 Net change in investments by pool participants (28,662,308 Net Assets held for pool participants at June 30, 2010 386.862.876 3. Receivables/Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenue not considered available to liquidate liabilities of the current period. Governmental and enterprise funds also defer revenue recognition in connection with resources that have been received, but not yet earned. Governmental Activities: General Fund: Resources received that do not meet the criteria for revenue Welfare Fund: Resources received that do not meet the criteria for revenue TT„a.~a;lahlA TT„Aa,,,A.l $ -- $ 1,601,430 -- 3,195,825 Public Health Fund: Resources received that do not meet the criteria for revenue Behavioral Health Fund: Resources received that do not meet the criteria for revenue Road Fund: Resources received that do not meet the criteria for revenue Other Governmental Funds: Resources received that do not meet the criteria for revenue Resources unavailable for current expenditures Management believes all of its receivables are collectible. -- 124,643 -- 4,458,234 -- 2,476 -- 630,343 1,707,859 -- $ 1,707,859 $ 10,012,951 44 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 4. Interfund Transactions Interfund Receivables/Payables The composition of Interfund balances as of June 30, 2010 are as follows: Balances due to/from other funds: Receivable Fund Payable Fund Amount General Fund Welfare Fund $ 1,202,758 Behavioral Health Fund 3,803 Road Fund 190 Nonmajor Governmental Funds 137,105 Landfill Fund 995 1,344,851 Welfare Fund Behavioral Health Fund 644 Nonmajor Governmental Funds 829,428 830,072 Public Health Fund Behavioral Health Fund 6,842,006 6,842,006 Nonmajor Governmental Funds General Fund 542,814 Nonmajor Governmental Funds 47 542,861 Internal Service Funds Internal Service Funds 119,371 Total $ 9,679,161 These Interfund balances result from the time lag between the dates that (1) Interfund goods and services are provided or reimbursable ex penditures occur, and (2) payments between funds are made. 45 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 4. Interfund Transactions (continued) Transfers to/ from other funds: Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various County operations and re-allocations of special revenue. The following schedule briefly summarizes the County's transfer activity: Between Funds within the Governmental Activities: General Fund Welfare Fund Public Health Fund Behavioral Health Fund Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Welfare Fund Public Health Fund Behavioral Health Fund Road Fund Landfill Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Internal Service Funds Total Road Fund Road Fund Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds Nonmajor Governmental Funds General Fund $ 695,658 Transfer for operating subsidy 724,304 Transfer for county match 424,727 Transfer for county match 10,431,121 Fire Protection 1,157,261 Transfer for water operating subsidy 1,812,151 Transfer for library operating subsidy 805,008 Transfer for debt service - POB 628,598 Transfer to State COPS for JJCPA revenue 542,766 Transfer for debt service 17, 221, 594 356,371 Transfer for debt service - POB 124,024 Transfer for debt service - POB 234,310 Transfer for debt service - POB 74,297 Transfer for debt service - POB 14,369 Transfer for debt service - POB 1,320,000 Transfer for road operating subsidy - TDA 1,108,505 Transfer for road operating subsidy 64,945 Transfer for debt service - POB 15,733 Transfer for debt service - POB 5,282 Transfer for debt service - POB 2,514,465 156,484 Transfer for debt service 711 Transfer for equipment depreciation 594 Transfer for equipment depreciation 977,527 Transfer of assets for closed funds 1 14541 Fi $ 21,674,746 During the year, several internal service funds (Data Processing, Facilities Services, Duplicating, Stores and Communications) were closed and their balances were transferred into the General Fund. However, due to the General Fund being reported on the modified accrual basis, capital assets and compensated absences are now being reported on the Government-wide statements only. A government-wide adjustment of $1,238,117 was recorded to reflect the transfer of these balances. 46 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 5. Capital Assets Capital asset activity for the fiscal year ended June 30, 2010 was as follows: Governmental Activities Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Infrastructure Structures and improvements Equipment Total capital assets, being depreciated Less: accumulated depreciation for: Infrastructure Structures and improvements Equipment Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Business-Type Activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Structures and improvements Equipment Total capital assets, being depreciated Less: accumulated depreciation for: Structures and improvements Equipment Total accumulated depreciation Total capital assets, being depreciated, net Business-type activities capital assets, net Transfers Balancer and Balance July 1, 2009 Additions Retirements Adjustments June 30, 2010 $ 3,406,451 $ -- $ (34,048) $ 128,000 $ 3,500,403 1,402,009 523,803 (1,604,316) 321,496 4,808,460 523,803 (34,048) (1,476,316) 3,821,899 585,587,281 7,271,506 (380,692) -- 592,478,095 62,443,539 -- (21,695) 1,138,313 63,560,157 50,466,903 1,541,736 (1,602,560) 334,121 50,740,200 698,497,723 8,813,242 (2,004,947) 1,472,434 706,778,452 (364,106,814) (19,453,596) 380,692 -- (383,179,718) (19,379,966) (1,325,912) -- -- (20,705,878) (36,541,163) (3,390,121) 1,588,048 (21,102) (38,364,338) (420,027,943) (24,169,629) 1,968,740 (21,102) (442,249,934) 278,469,780 (15,356,387) (36,207) 1,451,332 264,528,518 $ 283,278,240 $ (14,832,584) $ (70,255) $ (24,984) $ 268,350,417 $ 488,135 $ -- $ 15,025,836 623,950 _ -- $ (57,195) $ 430,940 22,070 15,671,856 15,513,970 623,950 (35,125) 16,102,796 121,695 -- -- -- 121,695 4,200,352 -- (18,876) (42,227) 4,139,249 4,322,047 -- (18,876) (42,227) 4,260,944 (33,196) (5,294) -- -- (38,490) (2,569,147) (430,133) 18,876 77,461 (2,902,943) (2,602,343) (435,427) 18,876 77,461 (2,941,433) 1,719,704 (435,427) -- 35,234 1,319,511 $ 17,233,674 $ 188,523 $ $ 109 $ 17,422,307 r The beginning balance of Governmental Activities was restated as explained in Note 14. 47 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 5. Capital Assets (continued) Depreciation expense was changed to functions as follows: Governmental Activities: General government Public protection Public ways Health and sanitation Public assistance Education Recreation and cultural services Capital assets held by the government's internal service funds are charged to the various functions based on their usage of assets 1,051,491 3,022,328 19,416,342 345,894 73,471 91,251 167,547 Business-Type Activities: Solid Waste 6. Short-Term Debt Tax and Revenue Anticipation Notes 1,305 $ 24,169,629 $ 435,427 $ 435,427 In August 2009, the County issued $23,495,000 in tax anticipation notes in advance of property tax collections, depositing the proceeds in the general fund. These notes are necessary in order to fund operations prior to receipt of tax collections. During the fiscal year, the County satisfied the requirements of the notes. Short-term debt activity for the fiscal year ended June 30, 2010, was as follows: Balance Balance July 1, 2009 Additions Retirements June 30, 2010 Governmental Activities: FY 2009-10 TRANS $ -- $ 23,495,000 $ 23,495,000 $ -- Total governmental activities $ -- $ 23,495,000 $ 23,495,000 $ -- 48 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations Long-term obligations of the County consist of capital lease obligations, bonds, certificates of participation, notes, and other liabilities, which are payable from the General, Debt Service, Capital Projects, Enterprise, and Internal Service Funds. The calculated legal debt limit for the County is $227,938,425. A summary of long-term debt follows: Type of indebtedness (purpose) Maturity Governmental Activities: Bonds Payable Butte County Service Area No. 26 Bonds: 1974 Sewer Bonds 7/1/80-1/1/15 1975 Sewer Bonds, Series A 7/1/80-1/1/15 1975 Sewer Bonds, Series B 7/1/80-1/1/15 1975 Sewer Bonds, Series C 7/1/80-1/1/15 Pension Obligation Bonds: Series A Series B Series C Total Bonds Payable 6/30/14-6/30/34 6/30/14-6/30/34 6/30/05-6/30/14 Certificates of Participation 2003 Certificates of Participation Total Certificates of Participation Notes Payable California Energy Commission Solar Project -phase 1 Solar Project -phase 2 Total Notes Payable Total Governmental Activities Business-type Activities Certificates of Participation Loan Payable Annual Original Outstanding Interest Principal Issue at Rates Installments Amount June 30, 2010 5% $10,000-$40,000 $ 680,000 $ 175,000 5% $10,000-$45,000 790,000 210,000 5% $5,000-$20,000 380,000 100,000 5% $956-$4,878 86,396 22,721 1,936,396 507,721 6.05% $55,000 -$3,440,000 28,020,000 28,020,000 Variable $295,000-$2,105,000 21,875,000 21,875,000 Variable $690,000-$910,000 7,865,000 -- 57,760,000 49,895,000 59,696,396 50,402,721 7/1/04-7/1/14 2%-3.4% $415,000-$650,000 5,150,000 1,945,000 5,150,000 1,945,000 6/22/06-12/22/18 4.9% $63,794-$135,899 2,777,000 1,984,575 6/22/06-6/22/20 4.9% $8,057-$17,545 390,000 293,236 3,167,000 2,277,811 $ 68,013,396 $ 54,625,532 11/1/06-11/1/21 3.4%-4.5% $725,000-$1,165,000 $ 12,025,000 $ 11,300,000 6/1/07-6/1/16 0% $50,000 500,000 300,000 TotalBusiness-typeActivities $ 12,525,000 $ 11,600,000 49 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations (continued) Summary of Long-Term Obligations The following is a summary of changes in long-term obligations: Balance Balance July 1, 2009 Additions Retirements June 30, 2010 _ Governmental Activities: Capital lease ob}igations $ 1,029,115 $ -- $ 106,842 $ 922,273 $ Bonds payable 50,491,664 -- 88,943 50,402,721 Notes payable 2,494,360 -- 216,549 2,277,811 Certificates ofparticipation 2,300,000 -- 355,000 1,945,000 Claims and judgments 4,805,000 3,781,382 3,422,382 5,164,000 Compensated absences 13,659,536 18,483,215 18,277,954 13,864,797 OPEB obligation 6,015,223 4,583,232 1,398,316 9,200,139 Total governmental activities Business-Type Activities: Capital lease ob}igations Certificates ofparticipation Premium on debt Landfill closure/post-closure care costs Loan payable Compensated absences Total business-type activities Amounts Due Within 90,263 94,140 225,187 365,000 2,400,000 1,500,000 $ 80,794,898 $ 26,847,829 $ 23,865,986 $ 83,776,741 $ 4,674,590 $ 19,687 $ -- $ -- $ 19,687 $ 19,687 12,025,000 -- 725,000 11,300,000 750,000 162,538 -- 13,545 148,993 13,545 2,147,745 136,930 -- 2,284,675 -- 350,000 -- 50,000 300,000 50,000 153,526 154,549 136,262 171,813 38,000 $ 14,858,496 $ 291,479 $ 924,807 $ 14,225,168 $ 871,232 50 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations (continued) Capital Lease The County leases equipment under capital leases. The following is a summary, by year, of future minimum lease payments, together with the present value of the minimum lease payments, as of June 30, 2010: Fiscal Year Ending Governmental June 30, Activities 2011 $ 146,974 2012 124,979 2013 123,431 2014 123,431 2015 123,431 2016-2020 617,154 Total minimum lease payments 1,259,400 Less: Amount representing interest 337,127 Present value of minimum lease payments $ 922,273 The following is a schedule of net remaining property leased under capital leases at June 30, 2010: Acquisition Accumulated Value Depreciation Governmental Activities: Chico Memorial Halls $ 1,254,300 $ 73,098 File management system 90,581 56,613 Vehicles 56,018 34,340 Operating Leases The County is committed under various noncancelable operating leases for office buildings and equipment. The minimum future lease commitments on these leases are as follows: Year Ended June 30, Payments 2011 $ 3,814,157 2012 3,648,813 2013 3,116,957 2014 3,100,957 2015 2,912,534 Totals 16.593.418 Rental expense was $4,373,762 for all funds for the year ended June 30, 2010. 51 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations (continued) Bonds Payable At June 30, 2010, bonds outstanding consist of the following: Sewer Bonds: The sewer bonds bear interest at the rate of 5% per annum which is payable semi-annually. Principal payments are due January 1 of each year through 2015. The bonds were issued to provide sewer in the County Service Area No. 26. Pension Obligation Bonds: The pension obligation bonds were issued in three series (A, B, and C) in 2004. These bonds were issued to save future interest costs associated with the County's pension obligations. Series A has a fixed interest rate of 6.0486%; Series B has a variable rate derived from the one month LIBOR index plus a margin of .30%. (The County elected to exercise its option to prepay Series C on September 1, 2007). For fiscal year 2009/2010, the average rate paid for Series B was .56179%. The next payment of interest for Series A is due December 1, 2010, while the interest payments for Series B are calculated and paid the first business day of each month. Principal payments for both Series A and B are due beginning in fiscal year 2014 and ending in fiscal year 2034. As of June 30, 2010, the estimated annual debt service requirements to maturity are as follows: Fiscal Year Ending June 30, Principal Interest Total 2011 $ 94,140 $ 2,284,636 $ 2,378,776 2012 99,347 2,520,305 2,619,652 2013 99,564 2,515,338 2,614,902 2014 454,792 2,510,359 2,965,151 2015 579,878 2,772,511 3,352,389 2016-2020 4,470,000 9,398,505 13,868,505 2021-2025 9,170,000 10,913,128 20,083,128 2026-2030 15,945,000 8,341,660 24,286,660 2031-2034 19,490,000 3,827,370 23,317,370 Total $ 50,402,721 $ 45,083,812 $ 95,486,533 52 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations (continued) Notes Payable At June 30, 2010, notes outstanding consist of the following: The County has in operation solar panels to generate power for certain county buildings. This solar project was funded, in part, through notes from the California Energy Commission of $3,167,000. Principal and interest, at a fixed rate of 3.95%, are due semi-annually beginning in fiscal year 2005-06. As of June 30, 2010, annual debt service requirements to maturity are as follows Fiscal Year Ending June 30, Principal Interest Total 2011 $ 225,187 $ 87,780 $ 312,967 2012 233,962 79,006 312,968 2013 243,503 69,465 312,968 2014 253,216 59,751 312,967 2015 263,317 49,651 312,968 2016-2020 1,058,626 90,437 1,149,063 Total $ 2,277,811 $ 436,090 $ 2,713,901 Compensated Absences Upon termination, an employee may be compensated for sick leave amounts accrued over 240 hours at half the normal pay rate not to exceed $3,000. Upon retirement, County employees have aone-time option of cashing out their accrued sick leave or electing post retirement health insurance benefits up to age 65. If an employee has 10 years of cumulative service, the County will pay health insurance benefits for 12 months plus 1 month for every 8 hours in excess of 240 hours accrued sick leave (employee coverage only). Vacation is accrued at varying rates depending on an employee's years of services. Upon termination, an employee is paid at 100% of the amount accrued. Compensated absences for vacation are paid out at the employee's current rate of pay. Administrative leave is accrued by employees exempt from paid overtime and may be accrued up to a maximum of 352 hours. The County does not accrue for compensated absences in its governmental fund statements and recognizes liabilities for compensated absences only if they are due and payable in an event such as termination. However, in the statement of activities the expenditure is allocated to each function based on usage. The compensated absences liability, as well as the OPEB obligation, attributable to the governmental activities will be liquidated as follows: General Fund 48%, Welfare Fund 17%, Public Health Fund 7%, Behavioral Health Fund 15%, Road Fund 6%, and Nonmajor funds 7%. 53 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations (continued) Certificates of Participation Governmental Activities On June 30, 2003, the County issued $5,150,000 in Certificates of Participation (GOP's). The proceeds of the GOP's, together with funds available in the 1993 COP Reserve Fund, refunded the outstanding lease obligations for fire trucks. Commencing January 1, 2004, interest ranging from 2.0% to 3.4% is payable semiannually on January 1 and July 1 of each year. The average rate of interest for the GOP's is 2.57%. Beginning on July 1, 2004, principal payments are due on Julyl of each year. Fiscal Year Ending June 30, Principal Interest Total 2011 $ 365,000 $ 54,879 $ 419,879 2012 375,000 44,235 419,235 2013 390,000 32,760 422,760 2014 400,000 20,510 420,510 2015 415,000 7,055 422,055 Total $ 1,945,000 $ 159,439 $ 2,104,439 Business-Type Activities On November 1, 2006, the County issued $12,025,000 in Certificates of Participation (GOP's), to fmance certain capital improvements for the expansion of the County's solid waste facility at Neal Road Landfill. The improvements include module closures and environmental mitigation. Commencing July 1, 2008, interest ranging from 3.4% to 4.5% is payable semiannually on January 1 and July 1 of each year. The average rate of interest for the certificates is 3.995%. Beginning on July 1, 2009, principal payments are due on July 1 of each year. June 30, Principal Interest Total 2011 $ 750,000 $ 447,500 $ 1,197,500 2012 780,000 416,900 1,196,900 2013 810,000 385,100 1,195,100 2014 845,000 352,000 1,197,000 2015 880,000 317,500 1,197,500 2016-2020 4,950,000 1,009,925 5,959,925 2021-2022 2,285,000 92,300 2,377,300 Total $ 11,300,000 $ 3,021,225 $ 14,321,225 54 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations (continued) Loan Payable Business-Type Activities At June 30, 2010, the loan outstanding consists of the following: The County has received a zero interest loan from the California Integrated Waste Management Board in the amount of $500,000 for operations at the Neal Road Landfill. Principal payments of $50,000 are due annually beginning June 1, 2007 and ending June 1, 2016. As of June 30, 2010, annual debt service requirements to maturity are as follows: Fiscal Year Ending June 30, Principal Interest Total 2011 $ 50,000 $ -- $ 50,000 2012 50,000 -- 50,000 2013 50,000 -- 50,000 2014 50,000 -- 50,000 2015 50,000 -- 50,000 2016 50,000 -- 50,000 Total $ 300,000 $ -- $ 300,000 Landfill Closure and Post-closure Costs State and federal laws and regulations require the County to place a final cover on its Neal Road landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and post-closure care costs will be paid only near or after the date that the landfill stops accepting waste, the County reports a portion of these closure and post- closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $2,284,675 reported as landfill closure and post-closure care liability at June 30, 2010, represents the cumulative amount reported to date based on the use of 18.40 percent of the estimated capacity of the landfill. The County will recognize the remaining estimated cost of closure and post-closure care of $10,131,643 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and post-closure care in 2010. The County expects to close the landfill in the fiscal year 2031. The County is required by state and federal laws and regulations to make annual contributions to a separate fund to finance closure and post-closure care. The County is in compliance with these requirements, and at June 30, 2010, investments of $4,555,934 are held for these purposes. The County expects the future inflation costs will be paid from interest earnings on these annual contributions. However, if interest earnings are inadequate or additional post-closure care requirements are determined; these costs may need to be covered by charges to future landfill users or from future tax revenue. 55 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 7. Long-Term Obligations (continued) Landfill Closure and Post-closure Costs (continued) Annually, the Landfill adjusts the estimated closure and post-closure costs due to changes in inflation and capacity. Total estimated costs for closure and post-closure increased from $12,269,090 at June 30, 2009 to $12,416,318 at June 30, 2010, and the remaining capacity of the landfill decreased from 82.49 percent to 81.60 percent at June 30, 2009 and 2010, respectively. These changes resulted in an increase to the landfill closure and post-closure care liability and caused an increase in expense of $136,930 at June 30, 2010. The closure/post-closure liability will be liquidated in the Landfill Fund. Limitations and Restrictions There are a number of limitations and restrictions contained in the various debt indentures. The County's management believes that the County is in compliance with all significant limitations and restrictions. Deferred Debt Issuance Costs Bond issuance costs are capitalized and amortized over the terms of the respective bonds using a method that approximates the effective interest method. Rebatable Arbitrage Earnings The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax- exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service at least every five years. During the current year, the County performed calculations of excess investment earnings on various bonds and financings and at June 30, 2010 does not expect to incur a liability. 8. Restricted Net Assets/Reserved and Designated Fund Balances Fund Balances Fund balances that are not available for appropriation or are not considered "expendable available financial resources" are reserved. Unreserved fund balances that have been earmarked by the Board for a specified purpose are considered designated. 56 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 8. Restricted Net Assets/Reserved and Designated Fund Balances (continued) Fund Balances (continued) Fund balance reserved for general restrictions are presented below: General Fund Criminal Justice Facility Temporary Construction $ 2,613,352 Recording System 2,309,077 Inmate Welfare 2,007,429 Tab1eA Water 1,428,231 Lime Saddle Dissolution Restitution 1,026,948 Probation - YOBG Restricted Cash 812,993 Probation -Title IV / TANF 590,980 Other 3,055,842 13,844,851 Welfare Fund Tax Intercept Refunds 222,198 Other 106,757 328,955 Public Health Fund Public Health Sales Tax 2,193,734 Public Health Vehicle License Fee Base 1,592,309 Public Health Vehicle License Fee Growth 1,431,730 CDC PHER H1N1 556,519 Other 1,168,102 6,942,394 Behavioral Health Fund Prop 63 - MHSA 490,808 Alcohol Education 227,147 Other 298,826 1,016,781 Road Fund Prop 1B 7,589,463 Other Governmental Funds 4D Child Support 361,285 Road Improvement Contributions 801,325 General Government CW Impact Fee 818,386 Subdivision Drainage 1,092,481 Fire-Water Tender Inc. 833,005 Fire -County Cost Share 991,226 Fire - CW Impact Fee 843,178 Other 4,313,853 10,054,740 Total Fund Balance -Reserved $ 39,777,184 57 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 8. Restricted Net Assets/Reserved and Designated Fund Balances (continued) Net Assets The government-wide statement of net assets reports $56 million of restricted net assets, none of which is restricted by enabling legislation. Net assets invested in capital assets, net of related debt, was comprised of the following: Governmental Business-Type Activities Activities Capital assets, net of accumulated depreciation $ 268,350,417 $ 17,422,307 Outstanding principal of capital -related debt (5,145,084) (11,468,680) Unspent debt proceeds -- 1,208,439 Net assets, invested in capital assets, net of related debt $ 263,205,333 $ 7,162,066 9. County Employees Retirement Plan (Defined Benefit Pension Plan) Plan Description The County contributes to the California Public Employees Retirement System (Ca1PERS), an agent multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California. Ca1PERS provides retirement and disability benefits, and death benefits to plan members and beneficiaries. Benefit provisions and all other requirements are established by state statute and County ordinance. Copies of Ca1PERS' annual financial report may be obtained from their executive office: 400 Q Street, Sacramento, CA 95811. Funding Policy Employees under the Miscellaneous Plan are required to contribute 7% and employees under the Safety Plan are required to contribute 9% of their annual covered salary. The County is required to contribute at an actuarially determined rate of annual covered payroll; the current rate is 9.980% for non-safety employees and 15.752% for safety employees. The contribution requirements of plan members and the County are established and may be amended by Ca1PERS. The schedule of funding progress for the postemployment defined benefit plan immediately following the notes to the financial statements presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits over time. 58 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 9. County Employees Retirement Plan (Defined Benefit Pension Plan) (continued) Annual Pension Cost For the year ended June 30, 2010, the County's annual pension cost of $10,926,866 for Ca1PERS was equal to the County's required and actual contributions. The required contribution was determined as part of the June 30, 2007 actuarial valuation using the entry age actuarial cost method. This is a projected benefit cost method, which takes into account those benefits that are expected to be earned in the future as well as those already accrued. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected annual merit or seniority salary increases that vary by length of service, and (c) no post retirement benefit increases. Both (a) and (b) included an inflation component of 3.0%. The actuarial value of the County's Ca1PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over athirty- year period (smoothed market value). The County's Ca1PERS unfunded actuarial accrued liability is being amortized as a level of percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 2007 was 30 years for the Miscellaneous Plan and 30 years for the Safety Plan. Funded Status and Funding Progress The following is the funded status information for each plan as of June 30, 2010, the most recent actuarial valuation date: Funded Status and Funding Progress The following is the funded status information for each plan as of June 30, 2010, the most recent actuarial valuation date: Entry Age Normal Actuarial Unfunded/ Accrued Value (Overfunded) Liability of Assets Liabilit,~ Annual Funded Covered UAAL as a Ratio Payroll % of Pa,, r Miscellaneous $ 435,914,875 $ 389,091,737 $ 46,823,138 89.3% $ 88,613,206 52.8% Safety 107,030,449 96,658,588 10,371,861 90.3% 17,025,702 60.9% The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time. 59 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 9. County Employees Retirement Plan (Defined Benefit Pension Plan) (continued) The County's annual pension cost and pension asset for the fiscal year ended June 30, 2010 were as follows: Annual required contribution Interest on beginning net pension asset Adjustment to the annual required contribution Annual pension cost Contributions made Decrease in net pension asset Net pension asset, beginning of year Net pension asset, end of year Miscellaneous Safety Total $ 8,983,157 $ 3,849,924 $ 12,833,081 (2,934,200) (1,257,515) (4,191,715) 2,335,885 1,001,093 3,336,978 8,384,842 3,593,502 11,978,344 7,648,806 3,278,060 10,926,866 (736,036) (315,442) (1,051,478) 36,752,110 15,750,904 52,503,014 36.016.074 15.435.462 51.451.536 Three-Year Trend Information for PERS Miscellaneous Annual Percentage of Fiscal Year Pension APC Net Pension Ending Cost (APC) Contribution Contributed Asset 6/30/2008 $ 6,582,801 $ 6,167,844 94% $ 36,027,420 6/30/2009 7,179,435 7,936,205 111% 36,784,189 6/30/2010 8,392,159 7,655,482 91% 36,047,512 Safety Annual Percentage of Fiscal Year Pension APC Net Pension Ending Cost (APC) Contribution Contributed Asset 6/30/2008 $ 2,812,999 $ 2,635,678 94% $ 15,395,438 6/30/2009 3,067,956 3,391,343 111% 15,718,825 6/30/2010 3,586,184 3,271,384 91% 15,404,024 60 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 10. Other Post Employment Benefits (OPEB) A. Plan Description The County sponsors healthcare coverage under the California Public Employees Medical and Hospital Care Act ("PEMHCA"), commonly referred to as PERS Health. PEMHCA provides health insurance through a variety of Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) options. Participation in PEMHCA is financed in part by the County through a contribution to PEMHCA of $101.00 per employee per month. The $101.00 per month increased by law to $105.00 on January 1, 2010, and will be indexed with medical inflation (CPI) for years 2011 and thereafter. Delta Dental (Premier and DPO), vision and life insurance are also available. Post-Retirement Coverage The County also offers medical, dental and vision coverage (but not life insurance) to its retirees. The County makes the required statutory PEMHCA contribution as described above, subject to the "Unequal Contribution Method" under which the County's contribution for retirees increases each year to 5% of its contribution for active employees multiplied by years the County has participated in PEMHCA until the two amounts are equal, except that Elected, Appointed, and Assistant Department Heads are covered under the Equal Contribution Method. Furthermore, the County will make additional contributions towards certain eligible retirees' premiums until age 65 according to the County's agreements with its various employee groups, as described below. Retirees who have completed at least 10 continuous years of service with the County, have accrued sick leave in excess of 240 hours, and elect retiree health insurance rather than the sick leave payout option, are eligible to receive reimbursements from the County for the cost of medical, dental and vision insurance (offset by the County's statutory contribution to PEMHCA.) For BCEA, BCMEA, CWA, BCPPOA, BCCOA (General and Management), Supervisor's Administrative Services Assistants, and Miscellaneous and Assistant Probation Officer positions within the "Assistant Department Heads and Non-Represented" group, the retiree may make an irrevocable election at the time of retirement to receive one of the following benefit options in addition to 12 months of County-paid health insurance: (1) One month of retiree-only premiums for each day of accrued sick leave at retirement; (2) One month of 2-party premiums (employee and spouse) for each 2 1/2 days in excess of 30 days accrued sick leave to cover both employee and spouse until age 65; or (3) One month of retiree-only premiums for each day of accrued sick leave until the sick leave credit is exhausted or the retiree reaches age 65, and one month of premiums for spousal coverage for each day of accrued sick leave in excess of thirty days until the sick leave credit is exhausted or the spouse reaches age 65. For DSA General, DSA Management, Under Sheriffs, and BCPEA, the retiree will receive 12 months of County-paid retiree-only health coverage. In addition, each one day of accrued sick leave is converted to one month of retiree-only health insurance premiums and credited to an account for the retiree. Premiums for the retiree and dependents, if applicable, are deducted from the account until it is depleted, or until the retiree reaches age 65, if earlier. 61 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 10. Other Post Employment Benefits (OPEB) (continued) A. Plan Description (continued Post-Retirement Coverage (continued) Elected and appointed department heads or officials retiring in good standing before age 65 under the provisions of the County's contract with PERS may continue to cover themselves and eligible dependents under the health plans. The County pays the full premium until age 65. In all cases, once the additional County contributions (as described above) end, the County pays the applicable PEMHCA statutory contribution for the remainder of the retiree's lifetime. For 2009, the monthly County contributions are $80.80 and $101.00 for Unequal and Equal Contribution Methods, respectively. For 2010, those amounts increased to $89.25 and $105.00, respectively. Changes in Eligibility for Sick-Leave Buy-out The County is eliminating eligibility for sick-leave buy-out for new hires. The cutoff hire date for eligibility varies by bargaining unit but is most commonly June 30, 2010. Provisions applicable only to future hires do not affect aclosed-group valuation and as such have not been taken into account in this report, which is as of July 1, 2009. Healthcare Premiums The following table shows January 1, 2009 monthly PERS Health (PEMHCA) premiums for retirees within the Other Northern California region (Bay Area/Sacramento for Kaiser). Dental and vision rates in effect for 2009-10 are also included. Blue PERS PERS PERS Delta Delta Shield Kaiser Choice Select Care PORAC Premier Dental HMO HMO PPO PPO (Safety) Dental PPO Basic Plan Retiree $ 569.01 $ 519.62 $ 501.59 $ 471.10 $ 779.53 $ 484.00 $ 32.30 $ 28.30 Retiree+l 1,138.02 1,039.24 1,003.18 942.20 1,559.06 906.00 69.80 61.70 Family 1,479.43 1,351.01 1,304.13 1,224.86 2,026.78 1,151.00 102.61 95.99 Medicare Sup plement Retiree 341.44 280.16 349.11 349.11 404.60 330.00 N/A N/A Retiree+l 682.88 560.32 698.22 698.22 809.20 657.00 N/A N/A Family 1,024.32 840.48 1,047.33 1,047.33 1,213.80 1,052.00 N/A N/A 62 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 10. Other Post Employment Benefits (OPEB) (continued) B. Fundin..~X As required by GASB 45, an actuary will determine the County's Annual Required Contributions (ARC) at least once every two fiscal years. The ARC is calculated in accordance with certain parameters, and includes (1) the Normal Cost for one year, and (2) a component for amortization of the total unfunded actuarial accrued liability (UAL) over a period not to exceed 30 years. GASB 45 does not require pre-funding of OPEB benefits. Therefore, the County's funding policy is to continue to pay healthcare premiums for retirees as they fall due. The County has elected not to establish an irrevocable trust at this time. As a result, there is not a separate audited GAAP-basis postemployment benefit plan report available. The Board of Supervisors reserves the authority to review and amend this funding policy from time to time, in order to ensure that the funding policy continues to best suit the circumstances of the County. C. Annual OPEB Cost and Net OPEB Obligation/(Asset) The following table shows the components of the County's Annual OPEB Cost for the fiscal years ended June 30, 2010, the amount actually contributed to the plan, and changes in the County's Net OPEB Obligation/(Asset): Annual required contribution $4,673,770 Interest on net OPEB obligation 300,761 Adjustment of annual required contribution (391,299) Annual OPEB cost 4,583,232 Contributions made 1,398,316 Change in net OPEB obligation (asset) 3,184,916 Net OPEB obligation (asset) beginning of year 6,015,223 Net OPEB obligation (asset) end of year $9,200,139 The County's Annual OPEB Cost, the percentage of Annual OPEB Cost contributed to the plan, and the Net OPEB Obligation/(Asset) for the fiscal years ended June 30, 2008, 2009, and 2010 are as follows: Fiscal Year Ending 6/30/2008 6/30/2009 6/30/2010 Annual Actual Percentage of Net OPEB Annual Annual OPEB OPEB Cost Employer Contribution $ 4,248,160 $ 4,248,160 4,583,232 1,180,848 1,300,249 1,398,316 Cost Contributed 27.80% 30.61% 30.51% Obligation (Asset) $ 3,067,312 6,015,223 9,200,139 63 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 10. Other Post Employment Benefits (OPEB) (continued) D. Schedule of Fundin.~ r. The funded status of the plan as of the most recent two actuarial valuations was as follows: Projected Unit Credit UAAL as a Actuarial Actuarial Actuarial Unfunded Percentage Valuation Value of Accrued AAL Funded Covered of Covered Date Assets Liability UAAL Ratio Payroll Pavroll July 1, 2007 $0 $27,660,497 $27,660,497 0.00% 101,759,340 27.18% July 1, 2009 $0 $33,471,811 $33,471,811 0.00% 105,638,908 31.69% 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 County 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 financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. 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 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 methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The plan's most recent actuarial valuation was performed as of July 1, 2009. In that valuation, the Projected Unit Credit (PUC) Cost Method was used. The actuarial assumptions included a 5 percent investment rate of return (net of administrative expenses) and an annual healthcare cost trend rate of 7 percent initially, reduced by decrements to an ultimate rate of 5 percent after 2 years. These assumptions reflect an implicit 3 percent general inflation assumption. The County's unfunded actuarial accrued liability is being amortized as a level dollar amount on an open basis over 30 years. The remaining amortization period as of June 30, 2010 was 30 years. The County's plan is considered asingle-employer plan under GASB 45. 64 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 11. Risk Management The County is exposed to various risk of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County has three risk management funds (Internal Service Funds) to consolidate the County's insurance programs that are partially self-insured. Fund revenues are primarily premium charges to other funds and are planned to equal estimated expenses resulting from self-insurance programs, liability insurance coverage in excess of the self-insured amount, and operating expenses. The primary activities of the funds consist of risk management programs related to the following: General Liability Insurance Unemployment Insurance Worker's Compensation Insurance For general liability and workers' compensation claims, the County is a participant in the California State Association of Counties (CSAC) -Excess Insurance Authority excess liability insurance program. The County maintains aself-insured retention (SIR) of $100,000 per occurrence for its general liability program and $125,000 for its workers' compensation program. The purpose of the pool is to spread the adverse effects of losses among the member agencies. The County pays an annual basic premium for excess coverage and is assessed an annual risk premium based on an actuarial review that estimates each of the program's participant's ultimate liabilities. Should actual losses among participants be greater than anticipated, the County will be assessed its pro rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the County will be refunded its pro rata share of the excess. Commercial insurance covers claims between $100,000 and $20,000,000 for general liability. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. The County is fully self-insured for its unemployment insurance program. Quarterly billings from the State Employment Development Department are sent to the County's claims reviewers, R.E. Harrington, Inc. After the claims are reviewed by R.E. Harrington, Inc., they are turned over to the County for payment. It is the County's policy to accrue to the Internal Service Fund the estimated liability, as determined with the assistance of independent actuaries, for claims in cases where such amounts are reasonably determinable and where the likelihood of liability exists. All operating funds participate in the program and make payments to the insurance funds based on actuarial estimates of the amounts needed to pay prior and current year claims, and to allow accrual of estimated incurred but not reported claims. These claims liability estimates are based on the requirements of GASB Statements No. 10 and 30 and include estimate claims incurred but not yet reported as of June 30, 2010. The claims liability includes all allocated loss adjustment expenses. Non-incremental claims adjustment expenses have also been included as part of the liability for claims and judgments. 65 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 11. Risk Mana>ement (continued) Changes in the insurance funds' claims liability amount during the fiscal years ended June 30, 2009 and 2010 were as follows: Claims Current Year Liability Claims and Changes Fiscal Year July 1 in Estimates 2008-2009 $ 5,249,000 $ (2,590,026) $ Claims Current Year Liability Claim June 30 2,146,026 $ 4,805,000 2009-2010 $ 4,805,000 $ (3,065,383) $ 3,424,383 $ 5,164,000 12. Affiliated Organization The Butte County Air Quality Management District (the District) was established in 1967 by the State Legislature through the "Mulford-Carrell Air Resources Act" which provided local air districts with the primary responsibility for the control of non-vehicular sources of air pollution. The District's Board is composed of ten members, of which five members are the County's Board of Supervisors. Effective August 2003, the District became a separate legal entity and is no longer considered a part of the County. The District has financial statements prepared and they can be obtained from management at the District. Condensed financial statements for the District as of June 30, 2010 are presented below: Statement of Net Assets Amount Assets $ 674,514 Liabilities 315,407 Equity $ 359107 Revenue and Expenses Revenues $ 1,785,668 Expenses 2,166,756 Net Income (Loss) (381.088) 13. Contingencies Grants The County participates in a number of grant programs funded, in whole or part, by federal, state and other sources. These programs are subject to program compliance audits by the grantors or their representatives. The audits of these programs for or including the fiscal year ended June 30, 2010, have not yet been conducted. Additionally, certain audits related to prior fiscal years have not been finalized. Accordingly, the County's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although, the County expects such amounts, if any, to be immaterial. 66 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 13. Contingencies (continued) Liti a. The County is a defendant in various matters of litigation. Of these matters, management and County's legal counsel do not anticipate any material effect on the June 30, 2010 financial statements. 14. Restatement of Fund Equity/Net Assets The impact of the restatements on fund balances/net assets as previously reported is presented below: Fund balance/net assets, June 30.009, as previously reported Restatements: Recalculation ofroad infrastructure Prior year additions to Aqua Frias Bridge Other -fund statements Other -government-wide Total Restatements Fund balance/net assets, July 1, 2009, as restated 15. Subsequent Events Tax and Revenue Anticipation Notes Statement of Fund Activities Statements Public Other Governmental General Welfare Health Govemmental Activities Fund Fund Fund Funds $ 350,484,621 $ 24,464,463 $ 3,019,173 $ 16,877,029 $ 31,703,736 2,693,980 -- -- -- -- 5,189,240 -- -- -- -- (204,093) (182,243) (2,001) 325 (20,174) (1,236) -- -- -- -- 7,677,891 (182,243) (2,001) 325 (20,174) $ 358,162,512 $ 24,282.20 $ 3,017,172 $ 16,877,354 $ 31,683,562 In July 2010, the County issued $24,320,000 in notes in anticipation of operating expenditures during the 2010-2011 fiscal year. The notes will be redeemed by June 30, 2011. USDA Loan for Bangor Fire Station In August 2010, the County received a $1,100,000 loan from the USDA to finance construction of the Bangor Fire Station. 67 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 15. Subsequent Events (continued) California State Budd The California legislature has experienced arecord-breaking impasse in agreeing upon a budget for fiscal year 2011. The State is the source for a significant amount of Butte County's revenues and much of these funds are at risk for deferral or cuts in order to balance the State budget. The County has taken these deferrals and cuts into account with its 2011 budget, but the risk exists that further decreases in revenue may be realized when the State finally comes to agreement on its spending plan. Many of these decreases in funding will be associated with State-mandated programs. The County remains committed to prudent fiscal management while providing quality services to its citizens. 16. Stewardship, Compliance, and Accountability Deficit Fund Balance The following funds had deficit fund balances at June 30, 2010: Deficit Fund Balance Behavioral Health Fund IHSS Public Authority Fund Library Fund 1,198,695 157,568 58,715 Behavioral Health Fund had a deficit fund balance of $1,198,695 at June 30, 2010. The deficit fund balance for the Behavioral Health Fund primarily resulted from reimbursement delays and a decrease in funding from the State of California. The County has implemented expenditure reductions to eliminate the deficit fund balance. IHSS Public Authority had a deficit fund balance of $157,568 at June 30, 2010. The deficit fund balance for IHSS primarily resulted from a decrease in funding from the State of California. The County has implemented expenditure reductions to eliminate the deficit fund balance. The Library Fund had deficit net assets of $58,715 at June 30, 2010. The deficit net assets result from less revenue collected than budgeted and a decrease in their operating transfer. The County has implemented expenditure reductions to eliminate the deficit fund balance. 68 o° li °~ o ~ ~ o o~~'°" o \U N'~ Required Supplementary Information urr COUNTY OF BUTTE, CALIFORNIA County Employee's Retirement Plan (Defined Benefit Pension Plan) Schedule of Funding Progress For the Fiscal Year Ended June 30, 2010 The tables below shows athree-year analysis of the actuarial value of assets as a percentage of the actuarial accrued liability and the unfunded actuarial accrued liability as a percentage of the annual covered payroll as of June 30: Actuarial Valuation Tate 6/30/2007: Misc. Safety Total 6/30/2008: Misc. Safety Total 6/30/2009: Misc. Safety Total Entry Age Unfunded Actuarial Actuarial Actuarial Value of Accrued Accrued Assets Liability Liability $ 343,569,266 $ 373,069,727 $ 29,500,461 85,517,599 89,635,795 4,118,196 $ 429,086,865 $ 462,705,522 $ 33,618,657 $ 369,399,324 $ 403,167,840 $ 33,768,516 91,770,029 96,570,462 4,800,433 $ 461,169,353 $ 499,738,302 $ 38,568,949 $ 389,091,737 $ 435,914,875 $ 46,823,138 96, 65 8, 5 88 107, 03 0, 449 10, 3 71, 861 $ 485,750,325 $ 542,945,324 $ 57,194,999 UAAL as Funded Percentage (UAAL) Covered of Covered Ratio Payroll Payroll (A/B) (C) ((B-A)/C) 92.1% $ 89,029,277 33.1% 95.4% 16,019,327 25.7% 92.7% $ 105,048,604 32.0% 91.6% $ 93,987,646 35.9% 95.0% 17,200,721 27.9% 92.3% $ 111,188,367 34.7% 89.3% $ 88,613,206 52.8% 90.3% 17,025,702 60.9% 89.5% $ 105,638,908 54.1% 69 COUNTY OF BUTTE, CALIFORNIA Other Post Employment Benefits (OPEB) Plan Schedule of Funding Progress For the Fiscal Year Ended June 30, 2010 (2) (1) Actuarial Actuarial Actuarial Accrued Valuation Value of Liability Date Plan Assets (AAL) 7/1/2007 $ -- $ 27,660,497 7/1/2009 -- 33,471,811 (4) Unfunded (6) Actuarial UAAL as a Accrued Percentage (3) Liability (5) of Covered Funded (UAAL) Annual Covered Payroll ratio (2) - (1) Payroll (4) - (5) 0.00% $ 27,660,497 $ 101,759,340 27.18% 0.00% 33,471,811 105,638,908 31.69% Notes to Required Supplementary Information 1. This information is intended to help users assess the County's OPEB plan's status on agoing-concern basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons with other public employers. 2. Because this is the second valuation under GASB 45, there are only two years of historical information provided. In the future, information from the three most recent valuations will be presented. 70 COUNTY OF BUTTE General Fund The General Fund is the general operations fund of the County. It accounts for all financial activities except those required to be accounted for in another fund. The accompanying Budgetary Comparison Schedule represents the primary expenditure classification of services provided by the County through the General Fund. 71 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year Actual Original Final Amounts $ 24,282,220 $ 24,282,220 $ 24,282,220 RESOURCES (inflows): Taxes Licenses and permits Fines, forfeitures, and penalties Revenues from uses of money and property Aid from other governments Charges for services Other Other financing sources Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): General Government: Board of Supervisors: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Board of Supervisors Administrative Office: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Administrative Office General Services: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total General Services Auditor-Controller: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Auditor-Controller 51,964,575 3,815,411 1,809,137 990,250 27,369,822 23,431,904 3,235,241 618,919 113,235,259 51,964,575 3,844,011 1,646,537 999,250 30,035,295 24,233,345 3,265,483 618,919 116,607,415 53,488,481 2,916,349 2,811,595 1,654,091 29,620,232 24,604,664 2,616,624 1,641,904 119,353,940 Variance with Final Budget Positive (Negative) -- 1,523,906 (927,662) 1,165,058 654,841 (415,063) 371,319 (648,859) 1,022,985 2,746,525 718,190 718,190 692,465 25,725 131,919 131,919 120,681 11,238 -- 2,990 -- 2,990 1,001,573 1,001,573 1,001,568 5 1,851,682 1,854,672 1,814,714 39,958 2,980,457 2,932,457 2,667,787 264,670 979,419 2,883,453 1,438,698 1,444,755 -- 301,382 285,189 16,193 -- 153,020 25,955 127,065 (294,368) (246,368) (313,227) 66,859 3,665,508 6,023,944 4,104,402 1,919,542 3,240,556 2,416,909 2,388,867 28,042 2,102,388 1,742,900 1,158,324 584,576 41,000 116,000 107,344 8,656 46,743 38,255 -- 38,255 (2,592,857) (1,832,275) (1,928,126) 95,851 2,837,830 2,481,789 1,726,409 755,380 1,500,155 1,500,155 1,427,418 72,737 153,837 177,072 134,966 42,106 -- 2,892 2,891 1 (307,869) (307,594) (307,596) 2 1,346,123 1,372,525 1,257,679 114,846 (continued) 72 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) General Government (continued): Purchasing: Salaries and employee benefits $ -- $ 597,780 $ 602,660 $ (4,880) Services and supplies -- 1,557,226 1,273,897 283,329 Other charges -- 16,488 16,626 (138) Other financing uses -- (1,110,374) (1,117,680) 7,306 Total Purchasing -- 1,061,120 775,503 285,617 Treasurer-Tax Collector: Salaries and employee benefits 1,744,698 1,723,698 1,611,212 112,486 Services and supplies 862,912 953,806 877,897 75,909 Other charges -- 1,500 1,303 197 Other financing uses 188,012 188,012 188,004 8 Total Treasurer-Tax Collector 2,795,622 2,867,016 2,678,416 188,600 Assessor: Salaries and employee benefits 2,861,049 2,872,444 2,743,504 128,940 Services and supplies 230,413 237,085 228,264 8,821 Other charges 5,000 7,000 6,997 3 Capital assets -- 10,000 10,000 -- Other financing uses 288,850 288,850 288,840 10 Total Assessor 3,385,312 3,415,379 3,277,605 137,774 Human Resources: Salaries and employee benefits 1,504,466 1,504,466 1,445,272 59,194 Services and supplies 167,372 244,114 161,446 82,668 Other financing uses (543,043) (543,043) (543,072) 29 Total Human Resources 1,128,795 1,205,537 1,063,646 141,891 County Counsel Salaries and employee benefits 1,164,868 1,168,488 1,153,450 15,038 Services and supplies 797,593 930,377 878,196 52,181 Other financing uses (1,353,483) (1,348,483) (1,348,790) 307 Total County Counsel 608,978 750,382 682,856 67,526 Elections: Salaries and employee benefits 852,571 828,071 794,116 33,955 Services and supplies 507,769 575,778 471,263 104,515 Other charges -- 745 653 92 Capital assets -- 388,294 58,911 329,383 Other financing uses 210,367 210,372 210,372 -- Total Elections 1,570,707 2,003,260 1,535,315 467,945 (continued) 73 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 General Government (continued): Information Systems: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Information Systems Public Works General Services: Services and supplies Other charges Other financing uses Total Public Works General Services Community Action Agency Services and supplies Other financing uses Total SPCL Grant Requirement Tax and Revenue Anticipation Notes: Other charges Total Tax and Revenue Anticipation Notes Retired Employee Benefits: Salaries and employee benefits Total Retired Employee Benefits Unallocated A-87: Services and supplies Other financing uses Total Unallocated A-87 General Revenue and Transfers: Other financing uses Total General Revenue and Transfers Total General Government Public Protection: Emergency Services: Services and supplies Total Emergency Services Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 2,423,844 $ 2,434,844 $ 2,434,037 $ 807 1,593,556 1,648,546 1,646,686 1,860 -- 305,000 300,306 4,694 391,296 20,296 -- 20,296 (2,112,079) (2,112,069) (2,114,873) 2,804 2,296,617 2,296,617 2,266,156 30,461 -- 7,070 7,068 2 -- 91,165 91,165 -- -- 233 228 5 -- 98,468 98,461 7 8,772 8,751 8,757 (6) -- 21 24 (3 ) 8,772 8,772 8,781 (9) 412,250 412,250 333,154 79,096 412,250 412,250 333,154 79,096 391,222 391,222 379,983 11,239 391,222 391,222 379,983 11,239 74,001 74,001 73,999 2 840,282 840,283 840,276 7 914,283 914,284 914,275 9 17,495,170 17,527,414 15,787,987 1,73 9,427 17,495,170 17,527,414 15,787,987 1,73 9,427 40,708,871 44,684,651 38,705,342 5,979,309 -- 194 290 (96) - 194 290 (96) (continued) 74 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Public Protection (continued): Grand Jury: Services and supplies Other financing uses Total Grand Jury Original Actual Final Amounts County Share Trial Courts: Services and supplies Other charges Other financing uses Total County Share Trial Courts District Attorney -Criminal Variance with Final Budget Positive (Negative) $ 88,000 $ 88,675 $ 88,674 $ 1 11,575 11,575 11,568 7 99,575 100,250 100,242 8 21,717 21,717 15,719 5,998 1,772,009 1,869,009 1,868,530 479 32,546 32,546 32,544 2 1,826,272 1,923,272 1,916,793 6,479 Salaries and employee benefits 7,781,352 8,197,015 7,858,506 338,509 Services and supplies 740,460 923,472 744,500 178,972 Other charges 29,700 108,741 76,460 32,281 Other financing uses 417,179 426,714 426,517 197 Total District Attorney -Criminal 8,968,691 9,655,942 9,105,983 549,959 District Attorney -Child Abduction Unit Salaries and employee benefits 167,218 178,218 178,157 61 Services and supplies 9,013 3,013 2,516 497 Other financing uses 47,896 42,896 42,822 74 Total District Attorney -Child Abduction Unit 224,127 224,127 223,495 632 District Attorney -Welfare Fraud Investigation Salaries and employee benefits 534,408 534,408 504,907 29,501 Services and supplies 22,598 22,598 9,091 13,507 Other financing uses 142,994 142,994 125,667 17,327 Total District Attorney -Welfare Fraud Invest. 700,000 700,000 639,665 60,335 District Attorney -IHSS Fraud: Salaries and employee benefits -- 88,554 82,825 5,729 Services and supplies -- 22,500 1,808 20,692 Total District Attorney -IHSS Fraud -- 111,054 84,633 26,421 Public Defender: Services and supplies 2,660,000 2,562,999 2,525,193 37,806 Other financing uses 56,166 56,168 56,169 (1) Total Public Defender 2,716,166 2,619,167 2,581,362 37,805 (continued) 75 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Public Protection (continued): Sheriff -Coroner Administration: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Sheriff -Coroner Administration Original Actual Final Amounts Sheriff -Coroner Operation: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Sheriff -Coroner Operation Sheriff -Coroner Incarc.: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Sheriff -Coroner Incarc. Sheriff -Rural County Supplement: Salaries and employee benefits Services and supplies Other financing uses Total Sheriff -Rural County Supplement Sheriff -Special Enforcement: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Sheriff -Special Enforcement Juvenile Hall General: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Juvenile Hall General Variance with Final Budget Positive (Negative) $ 4,829,750 $ 4,816,074 $ 4,815,314 $ 760 217,989 216,989 205,686 11,303 -- 3,000 2,631 369 -- 156,928 151,972 4,956 440,400 440,430 440,428 2 5,488,139 5,633,421 5,616,031 17,390 8,524,928 8,623,120 8,455,933 167,187 1,506,452 1,500,038 1,331,249 168,789 223,700 311,700 311,459 241 276,251 257,786 256,792 994 10,531,331 10,692,644 10,355,433 337,211 9,011,035 8,976,466 8,503,639 472,827 5,382,344 5,460,268 5,251,596 208,672 8,500 29,500 29,076 424 -- 14,000 13,882 118 851,544 851,556 851,556 -- 15,253,423 15,331,790 14,649,749 682,041 484,358 484,358 71,011 413,347 92,634 92,624 180 92,444 306,293 306,303 306,303 -- 883,285 883,285 377,494 505,791 810,134 1,022,696 1,021,843 853 251,039 237,819 217,412 20,407 27,500 64,500 63,507 993 76,500 26,658 3,136 23,522 56,169 (8,141) (8,150) 9 1,221,342 1,343,532 1,297,748 45,784 3,660,833 3,660,833 3,612,313 48,520 847,628 872,419 769,394 103,025 3,000 3,000 1,861 1,139 433,746 460,246 433,933 26,313 4,945,207 4,996,498 4,817,501 178,997 (continued) 76 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Public Protection (continued): Probation Victim Witness: Salaries and employee benefits $ 250,408 $ 232,308 $ 209,783 $ 22,525 Services and supplies 15,483 15,483 13,370 2,113 Capital assets -- 18,100 17,713 387 Other financing uses 22,278 22,278 22,272 6 Total Probation Victim Witness 288,169 288,169 263,138 25,031 Probation General Services Salaries and employee benefits 6,982,987 6,990,283 6,990,059 224 Services and supplies 1,056,085 1,352,622 963,290 389,332 Other charges 89,700 214,637 99,606 115,031 Other financing uses 769,351 884,361 802,953 81,408 Total Probation General Services 8,898,123 9,441,903 8,855,908 585,995 Probation BD/CON: Salaries and employee benefits 152,839 152,839 145,358 7,481 Services and supplies 145,013 145,007 72,936 72,071 Other financing uses 10,434 10,440 10,440 -- Total Probation BD/CON 308,286 308,286 228,734 79,552 Development Services Salaries and employee benefits 2,549,379 2,549,379 2,503,842 45,537 Services and supplies 955,836 1,687,358 856,239 831,119 Other charges 18,000 18,000 14,255 3,745 Other financing uses 515,025 515,025 515,040 (15) Total Development Services 4,038,240 4,769,762 3,889,376 880,386 Subdivision Inspection Salaries and employee benefits -- 462,687 462,569 118 Services and supplies 43,372 20,872 16,472 4,400 Other charges 29,986 44,986 44,661 325 Capital assets 1,071 1,071 -- 1,071 Other financing uses 34,777 34,777 34,776 1 Total Subdivision Inspection 109,206 564,393 558,478 5,915 Agriculture General Services Salaries and employee benefits 1,696,621 1,728,581 1,721,947 6,634 Services and supplies 175,097 194,929 173,220 21,709 Other charges 20,000 42,000 41,645 355 Other financing uses 166,407 166,407 166,404 3 Total Agriculture General Services 2,058,125 2,131,917 2,103,216 28,701 (continued) 77 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Public Protection (continued): Recorder: Salaries and employee benefits $ 886,627 $ 886,627 $ 731,573 $ 155,054 Services and supplies 218,626 288,302 158,613 129,689 Other charges -- 400 370 30 Other financing uses 148,117 148,117 148,104 13 Total Recorder 1,253,370 1,323,446 1,038,660 284,786 LAFCO Contribution Other charges 178,880 178,880 178,880 -- Total LAFCO Contribution 178,880 178,880 178,880 -- Total Public Protection 69,989,957 73,221,934 68,882,809 4,339,125 Public Assistance: Children's' Trust Fund -AB2994: Services and supplies 30,000 30,589 30,587 2 Total Children's' Trust Fund -AB2994 30,000 30,589 30,587 2 Welfare Domestic Violence: Services and supplies 30,000 30,000 30,000 -- Total Welfare Domestic Violence 30,000 30,000 30,000 -- Institutional/ Correction Services and supplies 150,097 150,097 45,251 104,846 Other charges 56,314 107,170 14,399 92,771 Other financing uses 2,150 2,150 2,136 14 Total Institutional/ Correction 208,561 259,417 61,786 197,631 Juvenile Court Wards: Other charges 500 500 381 119 Total Juvenile Court Wards 500 500 381 119 Veteran's Service Officer: Salaries and employee benefits 115,056 130,822 130,810 12 Services and supplies 39,402 35,092 32,999 2,093 Other charges 2,000 2,000 -- 2,000 Other financing uses 20,404 20,414 20,412 2 Total Veteran's Service Officer 176,862 188,328 184,221 4,107 Total Public Assistance 445,923 508,834 306,975 201,859 (continued) 78 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Education: Farm, Home, and 4H Department: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Farm, Home, and 4H Department Original Actual Final Amounts Total Education Recreation and cultural services: Butte Meadows Recreation Grant: Services and supplies Other charges Other financing uses Total Butte Meadows Recreation Grant Veteran's Memorial Halls: Salaries and employee benefits Services and supplies Other financing uses Total Veteran's Memorial Halls Total Recreation and Cultural Services Provisions for Contingencies: Appropriation Contingencies Total Charges to appropriations Budgetary Fund balances, ending Variance with Final Budget Positive (Negative) $ 126,549 $ 128,749 $ 128,739 $ 10 57,576 56,376 56,209 167 5,500 11,200 10,843 357 77,730 77,730 77,724 6 267,355 274,055 273,515 540 267,355 274,055 273,515 540 65,000 65,000 60,000 5,000 -- 1,500 1,361 139 8,141 6,641 876 5,765 73,141 73,141 62,237 10,904 165,867 165,867 163,575 2,292 58,729 86,164 56,932 29,232 349,792 349,792 349,764 28 574,388 601,823 570,271 31,552 647,529 674,964 632,508 42,456 11,537,301 11,261,273 -- 11,261,273 123,596,936 130,625,710 108,801,149 21,824,561 $ 13,920,543 $ 10,263,925 $ 34,835,011 $ 24,571,086 (continued) 79 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -General Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) °total resources" from the budgetary comparison schedule Differences - budget to USGAAP: Proceeds from sale of capital assets are inflows of budgetary resources but are not revenues for financial reporting purposes Transfers in are inflows of budgetary resources but are not revenues for financial reporting purposes Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance Uses/outflows of resources: Actual amounts (budgetary basis) °total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 119,353,940 (35,779) (1,606,125) $ 117,712,036 $ 108,801,149 (16,592,995) $ 92,208,154 80 COUNTY OF BUTTE Welfare Fund The Welfare Fund was established to provide social and employment services to the residents of Butte County. Services are provided through two Community Employment Centers in Oroville and Chico. 81 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Welfare Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Charges for services Other Interfund transfers Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Public Protection: Welfare -Public Guardian: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Welfare -Public Guardian Total Public Protection Public Assistance: Welfare Administration: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Welfare Administration Welfare -Eligibility: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Welfare -Eligibility Welfare Protective Services: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Welfare Protective Services Original Actual Final Amounts Variance with Final Budget Positive (Negative) $ 3,017,172 $ 3,017,172 $ 3,017,172 $ -- -- -- (22,606) (22,606) 123,036,425 141,979,444 133,906,516 (8,072,928) 737,968 737,968 559,032 (178,936) 1,154,262 1,154,262 1,489,379 335,117 -- 4,529,986 695,658 (3,834,328) 124,928,655 148,401,660 136,627,979 (11,773,681) 441,776 441,776 418,786 22,990 3,283 3,283 862 2,421 90,180 110,180 108,996 1,184 494,480 542,980 542,881 99 1,029,719 1,098,219 1,071,525 26,694 1,029,719 1,098,219 1,071,525 26,694 11,273,019 10,530,995 10,429,759 101,236 4,412,983 4,226,983 4,152,410 74,573 3,753,996 3,817,288 3,798,551 18,737 60,000 60,000 34,220 25,780 (19,497,998) (19,040,094) (19,040,140) 46 2,000 (404,828) (625,200) 220,372 11,618,357 12,558,068 11,537,413 1,020,655 52,078 669,454 511,701 157,753 239,990 239,990 187,154 52,836 -- 314,624 263,075 51,549 3,180,711 3,505,711 3,502,179 3,532 15,091,136 17,287,847 16,001,522 1,286,325 8,422,575 8,492,410 8,296,235 196,175 2,225,543 2,560,021 1,885,708 674,313 854,605 1,160,659 1,096,241 64,418 - 40,000 36,202 3,798 6,471,192 6,611,850 6,611,411 439 17,973,915 18,864,940 17,925,797 939,143 (continued) 82 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Welfare Fund -Budgetary Basis (continued) For the Fiscal Year Ended June 30, 2010 Public Assistance (continued): Welfare CALWORKS Program: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Welfare CALWORKS Program Welfare Aids: Other charges Total Welfare Aids Welfare General Relief: Services and supplies Total Welfare General Relief Total Public Assistance Total Charges to appropriations Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 4,472,924 $ 4,387,924 $ 4,213,802 $ 174,122 2,772,246 6,674,229 6,425,638 248,591 1,429,126 1,636,010 1,494,778 141,232 -- 67,222 67,222 -- 9,351,615 9,252,177 8,383,669 868,508 18,025,911 22,017,562 20,585,109 1,432,453 90,406,084 90,580,700 80,688,451 9,892,249 90,406,084 90,580,700 80,688,451 9,892,249 -- 9,194 7,637 1,557 -- 9,194 7,637 1,557 141,499,046 148,355,415 134,583,316 13,772,099 142,528,765 149,453,634 135,654,841 13,798,793 Budgetary Fund balances, ending $ (14,582,938) $ 1,965,198 $ 3,990,310 $ 2,025,112 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) °total resources" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance Uses/outflows of resources: Actual amounts (budgetary basis) °total charges to appropriations" from the budgetary comparison schedule Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 136,627,979 (695,658) $ 135,932,321 $ 135,654,841 (356,371) $ 135,298,470 83 o° Ali °~ o ~ ~ o o -~w_ ._,_ _. o o-=--es=-_ o c~U N'~y (This Page Intentionally Left Blank) 84 urr COUNTY OF BUTTE Public Health Fund The Public Health Fund was established to provide public health services to the residents of Butte County. 85 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Public Health Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year RESOURCES (inflows): Licenses and permits Fines, forfeitures, and penalties Revenues from uses of money and property Aid from other governments Charges for services Other Other financing sources Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Health and Sanitation: Public Health General Services: Salaries and employee benefits Services and supplies Other charges Capital assets Total Public Health General Services Public Health Environmental Health: Other charges Total Public Health Environmental Health Total Health and Sanitation Total Charges to appropriations Budgetary Fund balances, ending Original Actual Final Amounts Variance with Final Budget Positive (Negative) $ 16,877,354 $ 16,877,354 $ 16,877,354 $ -- 597,180 597,180 151,440 (445,740) 400,000 400,000 379,822 (20,178) -- -- 206,311 206,311 6,790,528 20,288,523 16,582,555 (3,705,968) 2,459,876 2,459,876 2,771,866 311,990 13,350 13,350 13,073 (277) -- 724,304 724,304 -- 10,260,934 24,483,233 20,829,371 (3,653,862) 12,615,515 12,892,565 11,725,909 1,166,656 9,580,359 10,120,772 8,938,488 1,182,284 4,034,883 2,041,143 1,938,394 102,749 -- 204,450 97,627 106,823 26,230,757 25,258,930 22,700,418 2,558,512 -- 95,206 95,206 -- -- 95,206 95,206 -- 26,230,757 25,354,136 22,795,624 2,558,512 26,230,757 25,354,136 22,795,624 2,558,512 $ 907,531 $ 16,006,451 $ 14,911,101 $ (1,095,350) 86 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Public Health Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) °total resources" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers in are inflows of budgetary resources but are not revenues for financial reporting purposes Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance Uses/outflows of resources: Actual amounts (budgetary basis) °total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 20,829,371 (724,304) 20,105,067 22,795,624 (124,024) $ 22,671,600 87 o° li °~ o ~ ~ o o~~'°" o CCU N'~y (This Page Intentionally Left Blank) 88 UTr COUNTY OF BUTTE Behavioral Health Fund The Behavioral Health Fund was established to provide behavioral health services to the residents of Butte County. 89 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Behavioral Health Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Budgetary fund balance, beginning of year $ (1,157,897) $ (1,157,897) $ (1,157,897) $ -- RESOURCES (inflows): Fines, forfeitures, and penalties -- Revenues from uses of money and property -- Aid from other governments 42,482,433 Charges for services 2,130,401 Other 700 Other financing sources -- Amounts available for appropriation 44,613,534 -- 126,785 126,785 -- 114,955 114,955 51,668,545 45,464,711 (6,203,834) 2,419,285 2,326,000 (93,285) 2,715 87,690 84,975 424,727 424,727 0 54,515,272 48,544,868 (5,970,404) CHANGES TO APPROPRIATIONS (outflows): Health and Sanitation: Behavioral Health General Services: Salaries and employee benefits 23,768,629 23,188,369 22,253,454 934,915 Services and supplies 18,789,490 24,406,109 18,550,946 5,855,163 Other charges 3,675,875 5,341,702 3,768,531 1,573,171 Capital assets -- 105,588 26,580 79,008 Other financing uses -- 674,282 -- 674,282 Total Mental Health General Services 46,233,994 53,716,050 44,599,511 9,116,539 Mental Health Substance Abuse: Salaries and employee benefits 1,697,060 2,024,027 1,975,693 48,334 Services and supplies 1,265,386 1,778,277 1,396,848 381,429 Other charges 222,054 289,682 239,530 50,152 Total Mental Health Substance Abuse 3,184,500 4,091,986 3,612,071 479,915 Behavioral Health Proposition 36: Salaries and employee benefits 496,475 175,457 174,845 612 Services and supplies 88,443 7,235 6,508 727 Other charges 331,987 218,341 192,731 25,610 Total Behavioral Health Proposition 36 916,905 401,033 374,084 26,949 Total Health and Sanitation 50,335,399 58,209,069 48,585,666 9,623,403 Total Charges to appropriations 50,335,399 58,209,069 48,585,666 9,623,403 Budgetary Fund balances, ending $ (6,879,762) $ (4,851,694) $ (1,198,695) $ 3,652,999 90 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Behavioral Health Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) °total resources" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers in are inflows of budgetary resources but are not revenues for financial reporting purposes Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance Uses/outflows of resources: Actual amounts (budgetary basis) °total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 48,544,868 (424,727) $ 48,120,141 $ 48,585,666 (234,310) $ 48,351,356 91 o° li °~ o ~ ~ o o~~'°" o CCU N'~y (This Page Intentionally Left Blank) 92 UTr COUNTY OF BUTTE Road Fund The Road Fund provides for planning, design, construction, maintenance, and administration of County transportation planning activities. Revenues consist primarily of the County's share of state highway user taxes and are supplemented by federal funds. 93 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Road Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Licenses and permits Fines, forfeitures, and penalties Revenues from uses of money and property Aid from other governments Charges for services Other Other financing sources Amounts available for appropriation Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 9,191,836 $ 9,191,836 $ 9,191,836 $ -- 50,000 50,000 -- 150,000 10,409,388 10,699,964 3,143,741 3,143,741 49,000 49,000 1,030,000 1,030,000 14,682,129 15,122,705 55,523 5,523 15,787 15,787 74,017 (75,983) 20, 924,224 10,224,260 2,153,855 (989,886) 20,157 (28,843) 2,461,620 1,431,620 25,705,183 10,582,478 CHANGES TO APPROPRIATIONS (outflows): Public Ways and Facilities: Road Operations: Salaries and employee benefits 7,736,859 7,736,859 7,298,309 438,550 Services and supplies 9,167,238 12,879,646 9,041,199 3,838,447 Other charges 1,307,272 1,307,272 1,101,679 205,593 Capital assets 344,500 344,500 5,120 339,380 Total Road Operations 18,555,869 22,268,277 17,446,307 4,821,970 Total Public Ways and Facilities 18,555,869 22,268,277 17,446,307 4,821,970 Provisions for Contingencies: Appropriation Contingencies 1,000,000 1,000,000 -- 1,000,000 Total Charges to appropriations 19,555,869 23,268,277 17,446,307 5,821,970 Budgetary Fund balances, ending $ 4,318,096 $ 1,046,264 $ 17,450,712 $ 16,404,448 94 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Road Fund -Budgetary Basis For the Fiscal Year Ended June 30, 2010 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) "total resources" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers in are inflows of budgetary resources but are not revenues for financial reporting purposes Proceeds from sale of capital assets are inflows of budgetary resources but are not revenues for financial reporting purposes Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 25,705,183 (2,428,505) (33,115) 23,243,563 17,446,307 (74,297) $ 17,372,010 95 COUNTY OF BUTTE, CALIFORNIA Note to Required Supplementary Information For the Fiscal Year Ended June 30, 2010 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 on or before August 30. Budgeted expenditures are enacted into law through the passage of an Appropriation Ordinance. This ordinance mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the County's Board of Supervisors. An operating budget is adopted each fiscal year for all Governmental Funds except for the JPFA. Expenditures are controlled at the object level within budget units for the County. The object level within a budget unit is the level at which expenditures may not legally exceed appropriations. Any amendments or transfers of appropriations between object levels within the same budget unit or between departments or funds are authorized by the County Administrative Officer's office and must be approved by the Board of Supervisors. The Board of Supervisors must approve supplementary appropriations normally financed by unanticipated revenues during the year. Pursuant to Board Resolution, the County Administrative Officer is authorized to approve transfers and revision of appropriations under $50,000 within a single budget unit as deemed necessary and appropriate. Budgeted amounts in the budgetary financial schedules are reported as originally adopted and as amended during the fiscal year by resolutions approved by the Board of Supervisors. The amounts reported in the budgetary basis differ from the basis used to present the basic financial statements in accordance with generally accepted accounting principles (GAAP). The County uses an encumbrances system as an extension of normal budgetary accounting for the general, special revenue, and other debt service funds and to assist in controlling expenditures of the capital projects funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Unencumbered appropriations lapse at fiscal year-end. Encumbered appropriations are carried forward in the ensuing fiscal year's budget. The budget approved by the Board of Supervisors for the general fund includes budgeted expenditures and reimbursements for amounts disbursed on behalf of other Governmental Funds. Actual reimbursements for these items have been eliminated in the accompanying budgetary financial schedules. Accordingly, the related budgets for these items have also been eliminated in order to provide a meaningful comparison of actual and budgeted results of operations. The budgets for the governmental funds may include an object level known as "intrafund transfers" in the charges for appropriations. This object level is an accounting mechanism used by the County to show reimbursements between operations within the same fund (an example would be the General Fund). 96 o° li °~ o ~ ~ o Q ~ ~_ 1 0 0 ~'~ ~_ .-.- Q c0U N'~ Combining Nonmajor Governmental Funds Statements urr COUNTY OF BUTTE Nonmajor Governmental Funds CAPITAL PROJECTS FUND Capital Project Fund is used to account for financial resources to be used for the acquisition of land or acquisition and construction of major facilities other than those financed by the proprietary fund types. SPECIAL REVENUE FUNDS Special Revenue funds are established to finance particular governmental activities and are financed by specific taxes or other revenues. Such funds are authorized by statutory provisions to pay for certain activities of a continuing nature. The nonmajor Special Revenue funds are listed below: The Equipment Replacement Fund was established to provide financing for equipment replacement. The Equipment Fund was established to provide financing for equipment purchases. The State COPS Fund was established to account for the State COPS monies received by the County. The Water Resources Fund accounts for revenues and expenditures relating to water and other resources management and conservation. The Fire Protection Fund provides fire protection services to both cities and unincorporated areas in the County. The Library Fund accounts for the revenues and expenditures relating to libraries. The Transit Fund was established to account for the local transportation tax funds. The Housing and Community Development Fund accounts for revenues and expenditures relating to housing and community improvement and development. The Fish and Game Fund is used to account for fines and forfeitures received under Section 13003 of the State of California Fish and Game Code and for other revenue and expenditures for the propagation and conservation of fish and game. The Board of Supervisors authorizes expenditures on the advice of the Fish and Game Commission. 97 COUNTY OF BUTTE Nonmajor Governmental Funds (continued) SPECIAL REVENUE FUNDS (Continued) The Child Support Services Fund was established by AB 196, AB 150, and SB 542 during fiscal year 2000-01 to provide separate fund accountability as required. These legislative bills mandated that all Family Support Divisions located in the District Attorney's Offices become separate and independent departments. Child Support Services establishes paternity, obtains and enforces court orders for child support, collects and distributes payments, and provides community outreach about those services for the benefit of minor children. The County Service Areas Fund accounts for special district funds that provide sewer, drainage, fire, and street lighting and maintenance to specific areas in the County and are financed by property taxes and user charges. The IHSS Public Authority Fund allows for the maintenance of a registry and referral system to assist consumers in finding qualified in-home supportive services (IHSS) personnel as well as training of and support for providers and recipients of IHSS. Revenues primarily come from grants. The Impact Fee Fund was established to account for Impact Fees, Mitigation Fees, or Local Agency Improvement Fees that are charged by local agencies to developers for the purpose of defraying the cost of public facilities that will be needed in relation to the development project. DEBT SERVICE FUND Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt. 98 COUNTY OF BUTTE, CALIFORNIA ASSETS Cash and investments Cash with fiscal agent Imprest cash Due from other funds Interest receivable Accounts receivable Due from other governments Deposits with others Loans receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Due to other funds Accounts payable Accrued payroll Deferred revenue Total liabilities Fund balances: Reserved for: Encumbrances Imprest cash Deposits with others General restrictions Debt service funds Unreserved: Designated Undesignated, reported in: Special revenue funds Capital project funds Total fund balances Total liabilities and fund balances Combining Balance Sheet Nonmajor Governmental Funds June 30, 2010 Special Revenue Funds Capital Projects Equipment Water Fire Fund Replacement Equipment State COPS Resources Protection $ 595,305 $ 2,146,967 $ 2,226,052 $ 195,649 $ 36,315 $ 1,825,704 -- 143,048 -- -- -- -- 3,920 13,723 12,479 4,370 361 12,711 -- -- -- -- 180,481 -- -- -- -- 191,513 -- -- $ 599,225 $ 2,303,738 $ 2,238,531 $ 391,532 $ 217,157 $ 1,838,415 $ -- $ -- $ -- $ 130,000 $ (12) $ -- 3,171 378 117,844 1,647 105,790 156,161 -- -- -- -- 21,281 755 3,171 378 117,844 131,647 127,059 156,916 44,932 -- -- 44,012 878,362 777,053 -- -- -- -- -- 1,824,231 -- 143,048 -- -- -- -- -- 2,160,312 2,120,687 215,873 (788,264) (919,785) 551,122 -- -- -- 596,054 2,303,360 2,120,687 259,885 90,098 1,681,499 $ 599,225 $ 2,303,738 $ 2,238,531 $ 391,532 $ 217,157 $ 1,838,415 continued 99 COUNTY OF BUTTE, CALIFORNIA Combining Balance Sheet (continued) Nonmajor Governmental Funds June 30, 2010 Special Revenue Funds Housing and Child Community Fish and Support Library Transit Development Game Services ASSETS Cash and investments $ 77,085 $ 5,181 $ 27,240 $ 155,298 $ 1,013,279 Cash with fiscal agent -- -- -- -- -- Imprest cash 150 -- -- -- 2,000 Due from other funds -- -- -- -- -- Interest receivable 303 2,631 677 982 8,868 Accounts receivable 216 -- -- -- -- Due from other governments -- 147,517 141,020 -- -- Deposits with others 297 -- -- -- -- Loans receivable -- -- 1,707,859 -- -- Total assets $ 78,051 $ 155,329 $ 1,876,796 $ 156,280 $ 1,024,147 LIABILITIES AND FUND BALANCES Liabilities: Due to other funds $ -- $ -- $ -- $ -- $ -- Accountspayable 64,843 576 381 5,257 173 Accrued payroll 71,924 -- -- -- 263,519 Deferred revenue -- -- 1,707,859 -- 630,343 Total liabilities 136,767 576 1,708,240 5,257 894,035 Fund balances: Reserved for: Encumbrances 43,989 -- 225,476 7,025 79,205 Imprest cash 150 -- -- -- 2,000 Deposits with others 297 -- -- -- -- General restrictions 102,452 -- -- 2 361,285 Debt service funds -- -- -- -- -- Unreserved: Designated -- -- -- -- -- Undesignated, reported in: Special revenue funds (205,604) 154,753 (56,920) 143,996 (312,378) Capital project funds -- -- -- -- -- Total fund balances (58,716) 154,753 168,556 151,023 130,112 Total liabilities and fund balances $ 78,051 $ 155,329 $ 1,876,796 $ 156,280 $ 1,024,147 continued 100 COUNTY OF BUTTE, CALIFORNIA ASSETS Cash and investments Cash with fiscal agent Imprest cash Due from other funds Interest receivable Accounts receivable Due from other governments Deposits with others Loans receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Due to other funds Accounts payable Accrued payroll Deferred revenue Total liabilities Fund balances: Reserved for: Encumbrances Imprest cash Deposits with others General restrictions Debt service funds Unreserved: Designated Undesignated, reported in: Special revenue funds Capital project funds Total fund balances Total liabilities and fund balances Combining Balance Sheet (continued) Nonmajor Governmental Funds June 30, 2010 Special Revenue Funds County Service IHSS Public Impact Areas Authority Fees Debt Service Fund Total $ 6,607,223 $ 614,151 $ 7,938,490 $ 800,644 $ 24,264,583 -- -- -- 4,690,377 4,833,425 -- -- -- -- 2,150 48 -- -- 542,813 542,861 39,009 2,877 44,581 4,630 152,122 -- 65,084 -- -- 245,781 58,502 2,082 -- 1,694,291 2,234,925 -- -- -- -- 297 -- -- -- -- 1,707,859 $ 6,704,782 $ 684,194 $ 7,983,071 $ 7,732,755 $ 33,984,003 $ 7,137 $ 829,455 $ 20,404 220 -- 12,087 -- $ -- $ 966,580 -- -- 476,845 -- -- 369,566 -- -- 2,338,202 - -- 4,151,193 97,488 -- -- -- 2,197,542 -- -- -- -- 2,150 -- -- -- -- 297 -- -- 7,766,770 -- 10,054,740 -- -- -- 7,732,757 7,875,805 4,460,824 -- -- -- 4,460,824 2,118,929 (157,568) 216,301 (2) 4,690,330 -- -- -- -- 5 51,122 6,677,241 (157,568) 7,983,071 7,732,755 29,832,810 $ 6,704,782 $ 684,194 $ 7,983,071 $ 7,732,755 $ 33,984,003 l~l COUNTY OF BUTTE, CALIFORNIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmaj or Governmental Funds For the Fiscal Year Ended June 30, 2010 Special Revenue Funds REVENUES Taxes Fines, forfeits and penalties Revenue from use of money and property Aid from other governments Charges for services Other Total revenues EXPENDITURES Current: General government Public protection Public ways and facilities Health and sanitation Public assistance Education Recreation and cultural services Debt Service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, beginning Prior period adjustment Fund balance -beginning, restated Fund balances -ending Capital Projects Equipment Water Fire Fund Replacement Equipment State COPS Resources Protection -- -- -- -- -- 1,168 16,165 66,921 63,329 11,469 2,953 60,387 -- -- -- 712,312 616,288 353,482 497,622 -- 362,884 -- -- 254,675 -- -- 50 -- 91,539 57,344 513,787 66,921 426,263 723,781 710,780 727,056 601,522 -- 305,877 -- -- -- 41,020 86,602 -- 159,921 1,780,061 11,978,201 5,303 -- -- -- -- -- 647,845 86,602 305,877 159,921 1,780,061 11,978,201 (134,058) (19,681) 120,386 563,860 (1,069,281) (11,251,145) -- -- 1,305 -- 1,157,261 10,431,121 -- -- -- (628,598) (5,282) -- -- -- 1,305 (628,598) 1,151,979 10,431,121 (134,058) (19,681) 121,691 (64,738) 82,698 (820,024) 730,112 2,323,041 1,998,996 324,623 7,400 2,501,523 730,112 2,323,041 1,998,996 324,623 7,400 2,501,523 $ 596,054 $ 2,303,360 $ 2,120,687 $ 259,885 $ 90,098 $ 1,681,499 continued 102 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmaj or Governmental Funds For the Fiscal Year Ended June 30, 2010 REVENUES Taxes Fines, forfeits and penalties Revenue from use of money and property Aid from other governments Charges for services Other Total revenues EXPENDITURES Current: General government Public protection Public ways and facilities Public ways and facilities Public assistance Education Recreation and cultural services Debt Service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, beginning Prior period adjustment Fund balance -beginning, restated Fund balances -ending Special Revenue Funds Housing and Child Community Fish and Support Library Transit Development Game Services -- -- -- 21,006 -- 5,563 8,823 (3,137) 3,970 37,996 207,279 1,836,542 810,157 -- 7,526,420 146,212 -- -- -- 29,000 143,758 -- 1,933 -- 59 502,812 1,845,365 808,953 24,976 7,593,475 1,074,686 -- -- -- 59,409 -- -- 811,420 -- -- -- -- -- -- -- 7,528,529 2,441,763 -- -- -- -- 2,441,763 811,420 1,074,686 59,409 7,528,529 (1,938,951) 1,033,945 (265,733) (34,433) 64,946 1,812,151 -- -- -- -- (15,733) (1,320,000) -- -- (64,945) 1,796,418 (1,320,000) -- -- (64,945) (142,533) (286,055) (265,733) (34,433) 1 83,817 440,808 434,289 185,913 130,421 -- -- -- (457) (310) 83,817 440,808 434,289 185,456 130,111 $ (58,716) $ 154,753 $ 168,556 $ 151,023 $ 130,112 continued 103 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmaj or Governmental Funds For the Fiscal Year Ended June 30, 2010 REVENUES Taxes Fines, forfeits and penalties Revenue from use of money and property Aid from other governments Charges for services Other Total revenues EXPENDITURES Current: General government Public protection Public ways and facilities Public ways and facilities Public assistance Education Recreation and cultural services Debt Service: Principal Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, beginning Prior period adjustment Fund balance -beginning, restated Fund balances -ending Special Revenue Funds County Debt Service IHSS Public Impact Service Areas Authority Fees Fund Total $ 845,731 $ -- $ -- $ -- $ 845,731 -- -- 479,224 -- 501,398 186,650 15,782 210,410 52,220 739,501 220,387 202,883 -- -- 12,485,750 329,092 57,240 -- 156,484 1,833,209 -- -- -- -- 294,683 1,581,860 275,905 689,634 208,704 16,700,272 -- -- 22,416 4,205 2,008,706 488,754 -- -- -- 14,593,968 -- -- -- -- 811,420 582,194 -- -- -- 587,497 -- 317,693 -- -- 7,846,222 -- -- -- -- 2,441,763 128,486 -- -- -- 128,486 88,943 -- -- 635,092 724,035 25,592 -- -- 2,035,699 2,061,291 1,313,969 317,693 22,416 2,674,996 31,203,388 267,891 (41,788) 667,218 (2,466,292) (14,503,116) -- -- -- 2,393,589 15,795,427 -- -- (1,108,505) -- (3,143,063) - -- (1,108,505) 2,393,589 12,652,364 267,891 (41,788) (441,287) (72,703) (1,850,752) 6,414,341 (115,780) 8,438,774 7,805,458 31,703,736 (4,991) -- (14,416) -- (20,174) 6,409,350 (115,780) 8,424,358 7,805,458 31,683,562 $ 6,677,241 $ (157,568) $ 7,983,071 $ 7,732,755 $ 29,832,810 104 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Capital Projects Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Charges for services Interfund transfers Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): General Government: General Services Building: Services and supplies Other charges Capital assets Total Chico Veterans Hall Oroville Veterans Hall ADA Improvements: Other charges Capital assets Total Chico Veterans Hall Total General Government Public Protection: Bangor Fire Station #55: Services and supplies Other charges Capital assets Total Bangor Fire Station #55 Total Public Protection Public Health Services Building: Capital assets Total Public Health Services Building Total Health and Sanitation Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 730,112 $ 730,112 $ 730,112 $ -- -- 20,000 16,165 (3,835) 409,605 409,605 497,622 88,017 1,041,792 1,041,792 -- (1,041,792) 1,451,397 1,471,397 513,787 (957,610) 125,000 83,000 63,709 19,291 1,682 60,634 58,560 2,074 -- 2,000 1,356 644 126,682 145,634 123,625 22,009 9,605 14,605 14,144 461 400,000 801,194 459,754 341,440 409,605 815,799 473,898 341,901 536,287 961,433 597,523 363,910 2,370 30,070 -- 30,070 7,422 26,422 25,512 910 1,032,000 989,300 19,507 969,793 1,041,792 1,045,792 45,019 1,000,773 1,041,792 1,045,792 45,019 1,000,773 $ -- $ 5,303 $ 5,303 $ -- -- 5,303 5,303 -- -- 5,303 5,303 -- (continued) 105 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Capital Projects Fund (continued) For the Fiscal Year Ended June 30, 2010 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Health and Sanitation (continued): Total Charges to appropriations 1,578,079 2,012,528 647,845 1,364,683 Budgetary Fund balances, ending $ 603,430 $ 188,981 $ 596,054 $ 407,073 106 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Equipment Replacement Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Interfund transfers Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Public Protection: Sheriff Equipment Replacement: Other charges Capital assets Total Sheriff Equipment Replacement Fire Equipment Replacement: Other charges Total Fire Equipment Replacement Total Public Protection Total Charges to appropriations Budgetary Fund balances, ending Original Actual Final Amounts Variance with Final Budget Positive (Negative) $ 2,323,041 $ 2,323,041 $ 2,323,041 $ -- 40,000 40,000 66,921 26,921 s6,lgo s6,lgo -- ~s6,lgo~ 96,1go 96,1go 66,921 ~29,2s9~ 5,387 5,387 5,387 -- -- 87,000 75,131 11,869 5,387 92,387 80,518 11,869 6,082 6,082 6,084 (2) 6,082 6,082 6,084 (2) 11,469 98,469 86,602 11,867 11,469 98,469 86,602 11,867 $ 2,407,752 $ 2,320,752 $ 2,303,360 $ (41,126) 107 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Equipment Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Charges for services Other financing sources Amounts available for appropriation 25,000 63,329 38,329 -- 362,884 362,884 -- 1,355 1,355 25,000 427,568 402,568 CHANGES TO APPROPRIATIONS (outflows): General Government: ISF Equipment Replacement: Other charges 4,049 310,329 305,877 4,452 Total ISF Equipment Replacement 4,049 310,329 305,877 4,452 Total General Government 4,049 310,329 305,877 4,452 Total Charges to appropriations 4,049 310,329 305,877 4,452 Budgetary Fund balances, ending $ 1,994,947 $ 1,713,667 $ 2,120,687 $ 407,020 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) "total resources" from the budgetary comparison schedule Differences - budget to USGAAP: Sale of capital assets Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance -equipment fund Original Actual Final Amounts Variance with Final Budget Positive (Negative) $ 1,998,996 $ 1,998,996 $ 1,998,996 $ -- $ 427,568 (1,305) $ 426,263 108 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis State COPS Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Amounts available for appropriation Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 324,623 $ 324,623 $ 324,623 $ -- -- -- 11,469 11,469 798,234 798,234 712,312 (85,922) 798,234 798,234 723,781 (74,453) CHANGES TO APPROPRIATIONS (outflows): Public Protection: District Attorney -State COPS: Services and supplies 53,488 53,488 20,719 32,769 Other charges 827 827 828 (1) Total District Attorney -State COPS 54,315 54,315 21,547 32,768 Sheriff -State COPS -Enforcement: Other charges Total Sheriff -State COPS -Enforcement Sheriff -State COPS -Jail: Services and supplies Capital assets Total Sheriff -State COPS -Jail Juvenile Justice Plan: Services and supplies Other financing uses Total Juvenile Justice Plan Total Public Protection Total Charges to appropriations Budgetary Fund balances, ending -- 236,490 236,490 -- -- 236,490 236,490 -- 70,000 30,466 30,465 1 -- 47,534 1,419 46,115 70,000 78,000 31,884 46,116 55,000 55,000 -- 55,000 618,919 618,919 498,598 120,321 673,919 673,919 498,598 175,321 798,234 1,042,724 788,519 254,205 798,234 1,042,724 788,519 254,205 $ 324,623 $ 80,133 $ 259,885 $ 179,752 (continued) 109 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis State COPS Special Revenue Fund (continued) For the Fiscal Year Ended June 30, 2010 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule $ 788,519 Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (628,598) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance -state COPS fund $ 159,921 110 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Water Resources Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Charges for services Other Interfund transfers Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Public Protection: Water Services: Salaries and employee benefits Services and supplies Other charges Capital assets Total Water Services Total Public Protection Total Charges to appropriations Budgetary Fund balances, ending Original Actual Final Amounts Variance with Final Budget Positive (Negative) $ 7,400 $ 7,400 $ 7,400 $ -- -- -- 2,953 2,953 133,767 1,914,188 616,288 (1,297,900) 110,000 110,000 -- (110,000) -- -- 91,539 91,539 1,226,745 1,226,745 1,157,261 (69,484) 1,470,512 3,250,933 1,868,041 (1,382,892) 463,294 501,579 473,155 28,424 955,727 2,672,863 1,239,067 1,433,796 51,491 51,491 52,084 (593) -- 25,000 21,037 3,963 1,470,512 3,250,933 1,785,343 1,465,590 1,470,512 3,250,933 1,785,343 1,465,590 1,470,512 3,250,933 1,785,343 1,465,590 $ 7,400 $ 7,400 $ 90,098 $ 82,698 (continued) 111 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Water Resources Special Revenue Fund (continued) For the Fiscal Year Ended June 30, 2010 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) "total resources" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance -water fund Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance -water fund $ 1,868,041 (1,157,261) $ 710,780 $ 1,785,343 (5,282) $ 1,780,061 112 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Fire Protection Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year RESOURCES (inflows): Fines, forfeitures and penalties Revenues from uses of money and property Aid from other governments Charges for services Other Other financing sources Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Public Protection: Fire Protection -Regular Service: Services and supplies Other charges Total Fire Protection -Regular Service Fire Protection -Voluntary Program Original Actual Final Amounts Variance with Final Budget Positive (Negative) $ 2,501,523 $ 2,501,523 $ 2,501,523 $ -- -- -- 1,168 1,168 -- -- 60,387 60,387 658,080 658,080 353,482 (304,598) 83,000 262,732 254,675 (8,057) 172,557 -- 57,344 57,344 11,280,786 11,265,786 10,431,121 (834,665) 12,194,423 12,186,598 11,158,177 (1,028,421) 11,544,961 11,552,136 11,067,586 484,550 421,436 425,556 425,484 72 11,966,397 11,977,692 11,493,070 484,622 Salaries and employee benefits 32,674 32,674 32,562 112 Services and supplies 459,837 459,837 389,229 70,608 Other charges 8,040 8,040 8,040 -- Total Fire Protection -Voluntary Program 500,551 500,551 429,831 70,720 Fire Protection -Ancillary Services Services and supplies 391,786 445,386 55,084 390,302 Other charges 214 214 216 (2) Capital assets 20,494 20,494 -- 20,494 Total Fire Protection -Ancillary Services 412,494 466,094 55,300 410,794 Total Public Protection 12,879,442 12,944,336 11,978,201 966,136 Total Charges to appropriations 12,879,442 12,944,336 11,978,201 966,136 Budgetary Fund balances, ending $ 1,816,504 $ 1,743,785 $ 1,681,499 $ (62,286) (continued) 113 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Fire Protection Special Revenue Fund (continued) For the Fiscal Year Ended June 30, 2010 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) "total resources" from the budgetary comparison schedule $ 11,158,177 Differences - budget to USGAAP: Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (10,431,121) Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance -fire fund $ 727,056 114 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Library Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Budgetary fund balance, beginning of year $ 83,817 $ 83,817 $ 83,817 $ -- RESOURCES (inflows): Revenues from uses of money and property -- -- 5,563 5,563 Aid from other governments 226,072 212,960 207,279 (5,681) Charges for services 161,503 148,550 146,212 (2,338) Other 188,792 175,792 143,758 (32,034) Interfund transfers 1,896,402 1,896,402 1,812,151 (84,251) Amounts available for appropriation 2,472,769 2,433,704 2,314,963 (118,741) CHANGES TO APPROPRIATIONS (outflows): Education: Libraries -Literacy Grant: Salaries and employee benefits 175,079 200,079 199,810 269 Services and supplies 47,505 62,505 62,338 167 Other charges 12,377 14,677 14,668 9 Total Libraries -Literacy Grant 234,961 277,261 276,816 445 Libraries Salaries and employee benefits 1,594,811 1,524,741 1,492,106 32,635 Services and supplies 346,703 393,692 349,177 44,515 Other charges 339,394 339,399 339,397 2 Total Libraries 2,280,908 2,257,832 2,180,680 77,152 Total Education 2,515,869 2,535,093 2,457,496 77,597 Total Charges to appropriations 2,515,869 2,535,093 2,457,496 77,597 Budgetary Fund balances, ending $ 40,717 $ (17,572) $ (58,716) $ (41,144) Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures Sources/inflows of resources: Actual amounts (budgetary basis) "total resources" from the budgetary comparison schedule $ 2,314,963 Differences - budget to USGAAP: Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,812,151) Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance -library fund $ 502,812 Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule $ 2,457,496 Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (15,733) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance -library fund $ 2,441,763 115 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Transit Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Amounts available for appropriation Original Actual Final Amounts Variance with Final Budget Positive (Negative) $ 440,808 $ 440,808 $ 440,808 $ -- -- 2,000 8,823 6,823 2,477,918 2,477,918 1,836,542 (641,376) 2,477,918 2,479,918 1,845,365 (634,553) CHANGES TO APPROPRIATIONS (outflows): Public Ways and Facilities: Transit -System Operations Other charges 2,479,296 2,479,296 2,131,420 347,876 Total Transit -System Operations 2,479,296 2,479,296 2,131,420 347,876 Total Public Ways and Facilities 2,479,296 2,479,296 2,131,420 347,876 Total Charges to appropriations 2,479,296 2,479,296 2,131,420 347,876 Budgetary Fund balances, ending $ 439,430 $ 441,430 $ 154,753 $ (286,677) Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance -transit fund $ 2,131,420 (1,320,000) $ 811,420 116 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Housing and Community Development Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Other Amounts available for appropriation Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 434,289 $ 434,289 $ 434,289 $ -- -- 2,000 (3,137) (5,137) 646,827 1,016,827 810,157 (206,670) 309,465 307,465 1,933 (305,532) 956,292 1,326,292 808,953 (517,339) CHANGES TO APPROPRIATIONS (outflows): General Government: OS-STBG-1621: Services and supplies 230,000 247,897 152,147 95,750 Other charges 411,190 411,190 511,776 (100,586) Tota105-STBG-1621 641,190 659,087 663,923 (4,836) OS-PTAA-1432 Services and supplies Tota105-PTAA-1432 06-EDBG-2616 Other charges Tota104-EDBG-0632 06-EDBG-2769 Services and supplies Other charges Tota102-EDBG-874 08-EDEF-5887: Services and supplies Other charges Tota106-EDBG-5887 08-PTAG-5358: Services and supplies Other charges Tota108-PTAG-5358 875 -- 875 -- 875 -- 875 404 404 408 (4) 404 404 408 (4) -- 92,733 92,733 -- 5,233 5,233 7,357 (2,124) 5,233 97,966 100,090 (2,124) -- 294,000 111,294 182,706 6,000 1,269 4,731 -- 300,000 112,563 187,437 66,500 66,500 66,500 -- 3,500 3,500 2,199 1,301 70,000 70,000 68,699 1,301 (continued) 117 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Housing and Community Development Special Revenue Fund (continued) For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Original CHANGES TO APPROPRIATIONS (outflows) (continued): General Government (continued): HCD -Revolving Loan: Actual Final Amounts Variance with Final Budget Positive (Negative) Services and supplies $ 285,041 $ 279,825 $ 97,849 $ 181,976 Other charges 24,424 31,424 31,154 270 Total HCD -Revolving Loan 309,465 311,249 129,003 182,246 Total General Government 1,026,292 1,439,581 1,074,686 364,895 Total Charges to appropriations 1,026,292 1,439,581 1,074,686 364,895 Budgetary Fund balances, ending $ 364,289 $ 321,000 $ 168,556 $ (152,445) 118 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Fish and Game Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Fines, forfeitures, and penalties Revenues from uses of money and property Other Amounts available for appropriation Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 185,456 $ 185,456 $ 185,456 $ -- 21,000 13,000 21,006 8,006 -- -- 3,970 3,970 -- 8,000 -- (8,000) 21,000 21,000 24,976 3,976 CHANGES TO APPROPRIATIONS (outflows): Public Protection: Fish and Game: Services and supplies 95,066 115,888 58,426 57,462 Other charges 980 980 983 (3) Total Libraries -Fish and Game 96,046 116,868 59,409 57,459 Total Public Protection Total Charges to appropriations Budgetary Fund balances, ending 96,046 116,868 59,409 57,459 96,046 116,868 59,409 57,459 $ 110,410 $ 89,588 $ 151,023 $ 61,436 119 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Child Support Services Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Charges for services Other Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Public Assistance: Child support services: Salaries and employee benefits Services and supplies Other charges Total Public Assistance Total Charges to appropriations Budgetary Fund balances, ending Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 130,111 $ 130,111 $ 130,111 $ -- -- 50,000 37,996 (12,004) 8,989,912 8,989,912 7,526,420 (1,463,492) 29,000 29,000 29,000 -- 100 100 59 (41) 9,019,012 9,069,012 7,593,475 (1,475,537) 7,573,710 7,539,802 6,316,492 1,223,310 697,184 713,874 558,118 155,756 798,118 815,336 718,864 96,472 9,069,012 9,069,012 7,593,474 1,475,538 9,069,012 9,069,012 7,593,474 1,475,538 $ 80,111 $ 130,111 $ 130,112 $ 1 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 7,593,474 (64,945) $ 7,528,529 120 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis County Service Areas Special Revenue Funds For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year $ 6,409,350 $ 6,409,350 $ 6,409,350 $ -- RESOURCES (inflows) Taxes 798,639 798,639 845,731 47,092 Revenues from uses of money and property 126,172 126,172 186,650 60,478 Aid from other governments 245,993 245,993 220,387 (25,606) Charges for services 330,070 330,070 329,092 (978) Amounts available for appropriation 1,500,874 1,500,874 1,581,860 80,986 CHANGES TO APPROPRIATIONS (outflows) Public protection 1,549,055 1,110,496 488,754 621,742 Health and sanitation 946,867 946,867 582,194 364,673 Recreation and cultural services 171,606 171,606 128,486 43,120 Other charges -- 122,326 114,535 7,791 Total Charges to appropriations 2,667,528 2,351,295 1,313,969 1,037,326 Budgetary Fund balances, ending $ 5,242,696 $ 5,558,929 $ 6,677,241 $ 1,118,312 121 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis IHSS Public Authority Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Charges for services Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Public Assistance: IHSS Public Authority: Salaries and employee benefits Services and supplies Other charges Total IHSS Public Authority Total Public Assistance Total Charges to appropriations Budgetary Fund balances, ending Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ -- $ (115,780) $ (115,780) $ -- -- -- 15,782 15,782 -- 445,927 202,883 (243,044) -- -- 57,240 57,240 -- 445,927 275,905 (170,022) -- 354,669 267,765 86,904 -- 67,684 27,309 40,375 -- 23,574 22,619 955 -- 445,927 317,693 128,234 -- 445,927 317,693 128,234 -- 445,927 317,693 128,234 $ -- $ (115,780) $ (157,568) $ (41,788) 122 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Impact Fees Special Revenue Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Fines, forfeits and penalties Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): Public Assistance: IHSS Public Authority: Other charges Othe financing uses Total IHSS Public Authority Total Public Assistance Total Charges to appropriations Budgetary Fund balances, ending Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 8,424,358 $ 8,424,358 $ 8,424,358 $ -- -- -- 210,410 210,410 7,800 7,800 479,224 471,424 7,800 7,800 689,634 681,834 -- 26,773 22,416 4,357 -- 1,108,505 1,108,505 -- -- 1,135,278 1,130,921 4,357 -- 1,135,278 1,130,921 4,357 -- 1,135,278 1,130,921 4,357 $ 8,432,158 $ 7,296,880 $ 7,983,071 $ 677,478 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 1,130,921 (1,108,505) $ 22,416 123 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Debt Service Fund For the Fiscal Year Ended June 30, 2010 Budgetary fund balance, beginning of year RESOURCES (inflows): Revenues from uses of money and property Other Other financing sources Interfund transfers Amounts available for appropriation CHANGES TO APPROPRIATIONS (outflows): General Government: POB Series A: Services and supplies Other financing uses Total POB Series A POB Series B: Services and supplies Other financing uses Total POB Series B CEC Solar Other charges Total CEC Solar Chico Memorial Hall 554 Rio Other charges Total Chico Memorial Hall 554 Rio Chico Memorial Hall 492 Rio Other charges Total Chico Memorial Hall 492 Rio Total General Government Public Protection: Justice Facility: Other financing uses Total Justice Facility Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 7,805,458 $ 7,805,458 $ 7,805,458 $ -- -- -- 52,220 52,220 -- 3,185,992 156,484 (3,029,508) -- 868,134 -- -- -- -- 2,393,589 2,393,589 -- 4,054,126 2,602,293 (583,699) 2,500 4,220 4,203 17 1,690, 992 1,690,992 1,690,992 -- 1,693,492 1,695,212 1,695,195 17 2,500 775 -- 775 1,490,000 1,490,000 124,066 1, 365,934 1,492,500 1,490,775 124,066 1,366,709 312,967 312,967 312,967 -- 312, 967 312, 967 312, 967 -- 62,275 62,275 62,275 -- 62,275 62,275 62,275 -- 61,158 61,158 61,156 2 61,158 61,158 61,156 2 3,622,392 3,622,387 2,255,659 1,366,728 423,148 423,148 419,337 3,811 423,148 423,148 419,337 3,811 (continued) 124 COUNTY OF BUTTE, CALIFORNIA Budget Comparison Schedule -Budgetary Basis Debt Service Fund (continued) For the Fiscal Year Ended June 30, 2010 Budgeted Amounts Public Protection (continued): DA-Ford Motor Credit x16373 Other charges Total DA-Ford Motor Credit x16373 Original Actual Final Amounts Total Public Protection Total Charges to appropriations Variance with Final Budget Positive (Negative) $ 8,586 $ 8,586 $ -- $ 8,586 8,586 8,586 -- 8,586 431,734 431,734 419,337 12,397 4,054,126 4,054,121 2,674,996 1,379,125 Budgetary Fund balances, ending $ 3,751,332 $ 7,805,463 $ 7,732,755 $ 795,426 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Actual amounts (budgetary basis) "total resources" from the budgetary comparison schedule $ 2,602,293 Differences - budget to USGAAP: Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (2,393,589) Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance $ 208,704 125 o° li °~ o ~ ~ o Q ~ ~_ 1 0 ~0 ~~,'~ ~_ .-.- Q \U N~% (This Page Intentionally Left Blank) 126 UTT o~ '~ ~ o c ~ll~ o o s _ _o ~ ?~ ~(~ ~~ Internal Service Funds UTr COUNTY OF BUTTE Internal Service Funds These funds were established to account for the goods or services furnished by one County department or agency to other departments or agencies of the County, or to other governments, on acost-reimbursement basis. The Data Processing Fund is supported by revenues received from County departments for services from the Data Processing department for software systems support to computer network and data structure design and organization to County computer systems. The Self-Insurance Fund accounts for the liability claims against the County, the administration of the insurance program, and associated legal and adjustment expenses. The Worker's Compensation Insurance Fund accounts for the disability, medical, and rehabilitation expenses and related costs associated with on-the job injuries. The Unemployment Insurance Fund accounts for the unemployment compensation claims filed against the County. The Medical Liability Insurance Fund accounts for the medical compensation claims filed against the County. The Self-Insurance Transit Fund accounts for the transit claims filed against the County. The Miscellaneous Insurance Fund accounts for the financing of the County's miscellaneous self- insurances. The Facilities Services Fund accounts for maintenance service provided to County departments. The Utilities Clearing Fund accounts for the utilities provided to County departments. The Duplicating Fund accounts for printing service functions such as reproduction, layouts, and related costs provided to County departments. The Stores Fund accounts for surplus property of the County departments. The Communications Fund accounts for centralized information management provided to County departments. 127 a~ ~~ ~ a ~~~~ \ 0 a a a _ _o o -~ „~ : - __~ - ~ ?-~` ~(~ ~~ (This Page Intentionally Left Blank) 128 UTT COUNTY OF BUTTE, CALIFORNIA Combining Statement of Fund Net Assets Internal Service Funds June 30, 2010 ASSETS Current Assets: Cash and Investments Cash with fiscal agent Due from other funds Interest receivable Prepaid expenses Deposits with others Total current assets Noncurrent Assets: Capital Assets: Depreciable: Equipment Accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current Liabilities: Due to other funds Accounts payable Liability for unpaid claims Total current liabilities Long-Term Liabilities: Liability for unpaid claims Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets Self Workers' Unemployment Insurance Compensation Insurance $ 1,609,349 $ 13,031,431 $ 1,589,804 -- 42,353 -- 119,371 -- -- 10,141 81,193 8,583 22,815 -- -- -- 90,000 -- 1,761,676 13,244,977 1,598,387 10,671 8,911 -- (2,312) (4,455) -- 8,359 4,456 -- 1,770,035 13,249,433 1,598,387 $ -- $ 119,371 $ -- 42,341 2,462 377 400,000 2,000,000 -- 442,341 2,121,833 377 516,000 2,248,000 -- 516,000 2,248,000 -- 958,341 4,369,833 377 8,359 4,456 -- 803,335 8,875,144 1,598,010 $ 811,694 $ 8,879,600 $ 1,598,010 continued 129 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Fund Net Assets (continued) Internal Service Funds June 30, 2010 ASSETS Current Assets: Cash and Investments Cash with fiscal agent Due from other funds Interest receivable Prepaid expenses Deposits with others Total current assets Noncurrent Assets: Capital Assets: Depreciable: Equipment Accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current Liabilities: Due to other funds Accounts payable Liability for unpaid claims Total current liabilities Long-Term Liabilities: Liability for unpaid claims Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets Medical Miscellaneous Utilities Liability Insurance Clearing Total $ 21,343 $ 19,076 $ 213,875 $ 16,484,878 -- -- -- 42,353 -- -- -- 119,371 (3) 13 1,662 101,589 -- -- -- 22,815 -- -- -- 90,000 21,340 19,089 215,537 16,861,006 19,582 (6,767) 12,815 21,340 19,089 215,537 16,873,821 $ -- $ -- $ -- 119,371 -- -- 20,258 65,438 -- -- -- 2,400,000 -- -- 20,258 2,584,809 -- -- -- 2,764,000 -- -- -- 2,764,000 -- -- 20,258 5,348,809 -- -- -- 12,815 21,340 19,089 195,279 11,512,197 $ 21,340 $ 19,089 $ 195,279 $ 11,525,012 130 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds For the Fiscal Year Ended June 30, 2010 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Salaries and employee benefits Services and supplies Premiums, claims and judgments Other charges Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest income Total nonoperating revenues (expenses) Net Income Before Transfers Transfers out Change in net assets Net assets, beginning Net assets, ending Data Self Workers' Unemployment Processing Insurance Compensation Insurance $ -- $ 2,079,760 $ 2,481,984 $ 643,903 -- 119,371 24,219 -- -- 2,199,131 2,506,203 643,903 -- -- -- 630,478 -- 726,861 579,596 2,001 -- 1,486,438 1,937,945 -- -- 80,640 306,118 2,051 -- 711 594 -- -- 2,294,650 2,824,253 634,530 -- (95,519) (318,050) 9,373 -- 39,675 364,549 39,720 -- 39,675 364,549 39,720 -- (55,844) 46,499 49,093 (1,288,797) (711) (594) -- (1,288,797) (56,555) 45,905 49,093 1,288,797 868,249 8,833,695 1,548,917 $ $ 811,694 $ 8,879,600 $ 1,598,010 continued 131 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Revenues, Expenses and Changes in Fund Net Assets (continued) Internal Service Funds For the Fiscal Year Ended June 30, 2010 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Salaries and employee benefits Services and supplies Premiums, claims and judgments Other charges Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest income Total nonoperating revenues (expenses) Net Income Before Transfers Transfers out Change in net assets Net assets, beginning Net assets, ending Medical Miscellaneous Facilities Utilities Liability Insurance Services Clearing $ 122,713 $ 130,758 $ -- $ 2,117,691 -- 113 -- 26,550 122,713 130,871 -- 2,144,241 100,288 100,895 -- 1,954,806 1,044 12,306 -- -- 101,332 113,201 -- 1,954,806 21,381 17,670 -- 189,435 385 470 -- 7,293 385 470 -- 7,293 21,766 18,140 -- 196,728 -- -- (185,921) (156,484) 21,766 18,140 (185,921) 40,244 (426) 949 185,921 155,035 $ 21,340 $ 19,089 $ $ 195,279 continued 132 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Revenues, Expenses and Changes in Fund Net Assets (continued) Internal Service Funds For the Fiscal Year Ended June 30, 2010 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Salaries and employee benefits Services and supplies Premiums, claims and judgments Other charges Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest income Total nonoperating revenues (expenses) Net Income Before Transfers Transfers out Change in net assets Net assets, beginning Net assets, ending Duplicating Stores Communications Total $ -- $ -- $ -- $ 7,576,809 -- -- -- 170,253 -- -- -- 7,747,062 -- -- -- 630,478 -- -- -- 3,464,447 -- -- -- 3,424,383 -- -- -- 402,159 -- -- -- 1,305 -- -- -- 7,922,772 -- -- -- (175,710) -- -- -- 452,092 -- -- -- 452,092 -- -- -- 276,382 (85,072) (203,051) (452,804) (2,373,434) (85,072) (203,051) (452,804) (2,097,052) 85,072 203,051 452,804 13,622,064 $ $ $ $ 11,525,012 133 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2010 Data Self Workers' Unemployment Processing Insurance Compensation Insurance CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ -- $ 2,079,760 $ 2,625,574 $ 643,903 Cash paid to suppliers for goods and services (36,243) (2,350,632) (2,466,719) (3,675) Cash paid to employees for services (452,083) (42) (625) (630,478) Internal activities -payments from (to) other funds (124,922) (75,897) (194,282) (848) Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out (613,248) (346,811) (36,052) 8,902 (73,521) (711) (594) -- Net cash provided (used) by noncapital financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending (73,521) (711) (594) -- 5,421 43,358 386,649 40,052 5,421 43,358 386,649 40,052 (681,348) (304,164) 350,003 48,954 681,348 1,913,513 12,723,781 1,540,850 $ -- $ 1,609,349 $ 13,073,784 $ 1,589,804 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET ASSETS Cash and investments $ -- $ 1,609,349 $ 13,031,431 $ 1,589,804 Cash with fiscal agent -- -- 42,353 -- Total cash and investments $ -- $ 1,609,349 $ 13,073,784 $ 1,589,804 continued 134 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2010 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Internal activities -payments from (to) other funds Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET ASSETS Cash and investments Cash with fiscal agent Total cash and investments Medical Miscellaneous Facilities Liability Insurance Services $ 122,713 $ 130,871 $ 21 (101,332) (113,201) (34,879) -- -- (226,764) (812) (286) 140,938 20,569 17,384 (120,684) -- -- 38,448 -- -- 38,448 394 464 477 394 464 477 20,963 17,848 (81,759) 380 1,228 81,759 $ 21,343 $ 19,076 $ -- $ 21,343 $ 19,076 $ -- $ 21,343 $ 19,076 $ -- continued 135 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2010 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Internal activities -payments from (to) other funds Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET ASSETS Cash and investments Cash with fiscal agent Total cash and investments Utilities Clearing Duplicating Stores $ 2,144,241 $ 46,937 $ 8,175 (1,954,232) (14,144) 93,113 -- (23,832) (12,275) 2,444 3,670 67,067 192,453 12,631 156,080 (156,484) (69,518) (195,739) (156,484) (69,518) (195,739) 8,541 128 (341) 8,541 128 (341) 44,510 (56,759) (40,000) 169,365 56,759 40,000 $ 213,875 $ -- $ -- $ 213,875 $ -- $ -- continued 136 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2010 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Internal activities -payments from (to) other funds Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET ASSETS Cash and investments Cash with fiscal agent Total cash and investments Communications Total $ 196,645 $ 7,998,840 (101,533) (7,083,477) (58,756) (1,404,855) 57,385 (125,543) 93,741 (615,035) (95,230) (553,349) (95,230) (553,349) 1,489 486,632 1,489 486,632 -- (681,752) -- 17,208,983 $ -- $ 16,527,231 $ -- $ 16,484,878 -- 42,353 $ -- $ 16,527,231 continued 137 COUNTY OF BUTTE Combining Statement of Cash Flows (continued) Internal Service Funds For the Fiscal Year Ended June 30, 2010 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in assets and liabilities: (Increase) decrease in: Accounts receivable Due from other funds Inventory Prepaid expenses and other assets Increase (decrease)in: Accounts payable Due to other funds Accrued salaries Compensated absences Claims and judgments Net cash provided (used) by operating activities Data Self Workers' Unemployment Processing Insurance Compensation Insurance $ -- $ (95,519) $ (318,050) $ 9,373 -- 711 594 -- 45,642 (88,756) 3,499 141 (36,243) (58,693) (60) 377 (170,564) (106,512) (78,410) (989) (81,061) (42) (625) -- (371,022) -- -- -- -- 2,000 357,000 -- $ (613,248) $ (346,811) $ (36,052) $ 8,902 continued 138 COUNTY OF BUTTE Combining Statement of Cash Flows (continued) Internal Service Funds For the Fiscal Year Ended June 30, 2010 Medical Liability Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in assets and liabilities: (Increase) decrease in: Accounts receivable Due from other funds Inventory Prepaid expenses and other assets Increase (decrease)in: Accounts payable Due to other funds Accrued salaries Compensated absences Claims and judgments Net cash provided (used) by operating activities Miscellaneous Facilities Insurance Services $ 21,381 $ 17,670 $ -- -- -- 21 49 50 509,416 -- -- 726 -- -- (35,605) (861) (336) (368,478) -- -- (73,782) -- -- (152,982) $ 20,569 $ 17,384 $ (120,684) continued 139 COUNTY OF BUTTE Combining Statement of Cash Flows (continued) Internal Service Funds For the Fiscal Year Ended June 30, 2010 Utilities Clearing Duplicating Stores Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ 189,435 $ -- $ -- Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation -- -- -- Changes in assets and liabilities: (Increase) decrease in: Accounts receivable -- 46,937 8,175 Due from other funds 11,863 25,855 187,966 Inventory -- -- 101,692 Prepaid expenses and other assets -- 29,424 -- Increase (decrease)in: Accounts payable 574 (43,568) (8,579) Due to other funds (9,419) (22,185) (120,899) Accrued salaries -- (6,304) (4,948) Compensated absences -- (17,528) (7,327) Claims and judgments -- -- -- Net cash provided (used) by operating activities $ 192,453 $ 12,631 $ 156,080 continued 140 COUNTY OF BUTTE Combining Statement of Cash Flows (continued) Internal Service Funds For the Fiscal Year Ended June 30, 2010 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in assets and liabilities: (Increase) decrease in: Accounts receivable Due from other funds Inventory Prepaid expenses and other assets Increase (decrease)in: Accounts payable Due to other funds Accrued salaries Compensated absences Claims and judgments Net cash provided (used) by operating activities Communications Total $ -- $ (175,710) -- 1,305 196,645 251,778 249,302 945,027 -- 101,692 -- 30,150 (101,533) (283,330) (191,917) (1,070,570) (14,683) (181,445) (44,073) (592,932) -- 359,000 $ 93,741 $ (615,035) 141 o° Ali °~ o ~ ~ o Q ~ ~ ~_ 0 \U N'~ (This Page Intentionally Left Blank) 142 urT o° Ali °~ o ~ ~ o o -~w_ ._,_ _. o o-=--es=-_ o c~U N'~y Fiduciary Funds urr COUNTY OF BUTTE Fiduciary Fund Types Fiduciary Funds account for assets held by the County in a trustee capacity, or as an agent for private organizations, other governmental units, or other funds. The following are the County's Fiduciary Funds: Agency Funds The Other Agency Fund accounts for assets held for other governmental agencies and governmental units by the Country in a fiduciary capacity. The Tax Resources Fund accounts for funds reserved for losses and property tax receipts apportioned to other local government agencies participating in the Teeter Plan. The Butte County SB-325 Fund accounts for funds held for other government agencies. The Butte County SB-620 Fund accounts for funds held for other government agencies. 143 o~ ~ o c ~ll~ o o s _ _o ~ ?~ ~(~ ~~ (This Page Intentionally Left Blank) 144 urr COUNTY OF BUTTE, CALIFORNIA Combining Statement of Fiduciary Assets and Liabilities Agency Funds June 30, 2010 Tax Butte County Other Resources SB-325 Total ASSETS Cash and investments $ 39,786,554 $ 4,861,709 $ 1 $ 44,648,264 Interest receivable -- 73,015 179 73,194 Property tax receivable -- 16,469,257 -- 16,469,257 Total assets $ 39,786,554 $ 21,403,981 $ 180 $ 61,190,715 LIABILITIES Agency funds held for others $ 39,786,554 $ 21,403,981 $ 180 $ 61,190,715 Total liabilities $ 39,786,554 $ 21,403,981 $ 180 $ 61,190,715 145 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Changes in Fiduciary Assets and Liabilities Agency Funds June 30, 2010 Balance July 1, 2009 Additions Other ASSETS Cash and investments Interest receivable Total assets LIABILITIES Agency funds held for others Total liabilities Tax Resources ASSETS Cash and investments Interest receivable Property tax receivable Total assets LIABILITIES Agency funds held for others Total liabilities Butte County SB-325 ASSETS Cash and investments Interest receivable Total assets LIABILITIES Agency funds held for others Total liabilities Deductions Balance June 30, 2010 $ 15,937,564 $ 40,355,049 $ 16,506,059 $ 39,786,554 14,898 -- 14,898 -- $ 15,952,462 $ 40,355,049 $ 16,520,957 $ 39,786,554 $ 15,952,462 $ 34,482,229 $ 10,648,137 $ 39,786,554 $ 15,952,462 $ 34,482,229 $ 10,648,137 $ 39,786,554 $ 4,342,008 $ 15,228,894 $ 14,709,193 $ 4,861,709 104,974 73,015 104,974 73,015 15,123,920 16,469,257 15,123,920 16,469,257 $ 19,570,902 $ 31,771,166 $ 29,938,087 $ 21,403,981 $ 19,570,902 $ 31,771,166 $ 29,938,087 $ 21,403,981 $ 19,570,902 $ 31,771,166 $ 29,938,087 $ 21,403,981 $ 2,337 $ 1 $ 2,337 $ 1 25 179 25 179 $ 2,362 $ 180 $ 2,362 $ 180 $ 2,362 $ 180 $ 2,362 $ $ 2,362 $ 180 $ 2,362 $ 180 continued 180 146 COUNTY OF BUTTE, CALIFORNIA Combining Statement of Changes in Fiduciary Assets and Liabilities (continued) Agency Funds June 30, 2010 Balance July 1, 2009 Butte County SB-620 ASSETS Cash and investments $ Total assets $ LIABILITIES Agency funds held for others Total liabilities Total Agency Funds ASSETS Cash and investments Interest receivable Property tax receivable Total assets LIABILITIES Agency funds held for others Total liabilities Additions Deductions Balance June 30, 2010 51 $ 12,910 $ 12,961 $ -- 51 $ 12,910 $ 12,961 $ -- 51 12,910 12,961 _ 51 $ 12,910 $ 12,961 $ $ 20,281,960 $ 55,596,854 $ 31,230,550 $ 44,648,264 119,897 73,194 119,897 73,194 15,123,920 16,469,257 15,123,920 16,469,257 $ 35,525,777 $ 72,139,305 $ 46,474,367 $ 61,190,715 $ 35,525,777 $ 66,266,485 $ 40,601,547 $ 61,190,715 $ 35,525,777 $ 66,266,485 $ 40,601,547 $ 61,190,715 147 a~ ~~ ~ a ~~~~ \ 0 a a a _ _o o -~ „~ : - __~ - ~ ?-~` ~(~ ~~ (This Page Intentionally Left Blank) 148 UTT 0 of 0 -o '~ ~ o ~~~~ \ ;~ ~~.~ ~~~ ~ --ti= _ •~ ~(~ ~~ Statistical Section UTr Statistical Section The information in this section is not covered by the Independent Auditor's Report, but is presented as supplemental data for the benefit of the readers of the comprehensive annual financial report. The objectives of statistical section information are to provide financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statements, notes to financial statements, and required supplementary information to understand and assess a government's economic condition. CONTENTS FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed overtime. REVENUE CAPACITY These schedules contain trend information to help the reader assess the County's most significant local revenue source, the property tax. DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. ECONOMIC AND DEMOGRAPHIC INFORMATION These schedules offer economic and demographic indicators to help the reader understand the environment within which the County's financial activities take place. OPERATING INFORMATION Theses schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 149 o° li °~ o ~ ~ o o~~'°" o CCU N'~y (This Page Intentionally Left Blank) 150 UTr COUNTY OF BUTTE, CALIFORNIA NET ASSETS by COMPONENT LAST NINE FISCAL YEARS (accrual basis of accounting) For the Fiscal Year Ended June 3Q, 2002 2003 2004 2005 2006 2007 2008 2009 2010 Governmental activities: Invested in capital assets, net of related debt $ 361,051,836 $ 346,872,973 $ 287,229,222 $ 328,573,058 $ 313,955,354 $ 299,087,057 $ 280,126,245 $ 269,571,545 $ 263,205,333 Restricted 50,627,806 43,991,120 29,106,697 14,971,692 16,696,959 26,321,708 45,999,726 51,089,379 55,902,915 Unrestricted 14,396,314 23,109,853 28,188,079 39,547,523 45,147,228 44,293,530 19,565,376 29,823,697 35,430,215 Total governmental activities net assets $ 426,075,956 $ 413,973,946 $ 344,523,998 $ 383,092,273 $ 375,799,541 $ 369,702,295 $ 345,691,347 $ 35Q,484,621 $ 354,538,463 Business-type activities: Invested in capital assets, net of related debt $ 3,715,815 $ 4,389,868 $ 6,799,310 $ 8,402,774 $ 8,748,541 $ 1,792,507 $ 4,389,846 $ 5,046,136 $ 7,162,066 Restricted - - 6,196,080 6,434,145 6,691,502 4,083,228 4,300,259 4,421,316 5,547,422 Unrestricted 5,987,239 9,311,498 520,516 (313,620) (753,677) 11,463,088 10,256,700 10,664,266 9,326,821 Total business-type activities net assets $ 9,703,054 $ 13,701,366 $ 13,515,906 $ 14,523,299 $ 14,686,366 $ 17,338,823 $ 18,946,805 $ 20,131,718 $ 22,036,309 Primary government: Invested in capital assets, net of related debt $ 364,767,651 $ 351,262,841 $ 294,028,532 $ 336,975,832 $ 322,703,895 $ 300,879,564 $ 284,516,091 $ 274,617,681 $ 270,367,399 Restricted 50,627,806 43,991,120 35,302,777 21,405,837 23,388,461 30,404,936 50,299,985 55,510,695 61,450,337 Unrestricted 20,383,553 32,421,351 28,708,595 39,233,903 44,393,551 55,756,618 29,822,076 40,487,963 44,757,036 Total primary govemmentnet assets $ 435,779,010 $ 427,675,312 $ 358,039,904 $ 397,615,572 $ 39Q,485,907 $ 387,041,118 $ 364,638,152 $ 370,616,339 $ 376,574,772 Source: Auditor-Controller, County of Butte Note: The Government-wide reporting requirements related to the implementation of GASB 34 were initiated during fiscal year 2001 -02. We therefore only have nine years of data available to report. 1S1 COUNTY OF BUTTE, CALIFORNIA CHANGES IN NET ASSETS LAST NINE FISCAL YEARS (accrual basis of accounting) Govenmental activities: Expenses General government Public protection Public ways and facilities Health and sanitation Public assistance Education Culture and recreation services Interest on long-term debt Total governmental activities expense Program Revenues Charges for services: General government Public protection Public ways and facilities Health and sanitation Public assistance Education Culture and recreation services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Net Expenses General Revenues and Transfers Taxes: Property taxes Sales taxes Other taxes and related revenues Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain (Loss) on Sale/Disposal of Capital Assets Miscellaneous Transfers Total general revenues and transfers Change in net assets- -governmental activities For the Fiscal Year Ended June 3Q, 2002 2003 2004 2005 2006 2007 2008 2009 2010 $ 12,073,217 $ 13,403,744 $ 19,988,028 $ 28,108,571 $ 16,617,793 $ 19,086,835 $ 20,865,771 $ 20,710,290 $ 25,115,218 61,195,775 67,875,626 69,137,314 82,634,178 81,999,331 87,500,747 96,664,267 94,362,185 88,790,678 27,590,645 28,463,533 28,079,018 17,520,672 31,531,708 34,623,721 39,999,631 34,975,071 30,009,178 49,121,198 55,095,207 55,942,561 56,395,525 58,593,884 64,268,283 72,458,490 67,582,300 72,502,065 123,118,708 127,500,579 126,530,857 130,935,568 130,966,814 135,871,668 142,125,227 142,615,875 143,688,838 2,453,904 2,522,005 2,749,824 2,723,315 2,905,270 3,117,432 3,394,070 3,291,233 2,805,328 430,377 533,602 393,637 499,967 658,741 604,386 374,615 524,852 512,353 - - - 3,608,601 4,183,940 4,315,186 3,696,005 2,659,630 2,499,474 275,983,824 295,394,296 302,821,239 322,426,397 327,457,481 349,388,258 379,578,076 366,721,436 365,923,132 6,399,673 5,856,655 6,461,374 16,760,879 16,779,891 19,903,572 20,463,697 16,567,360 21,694,710 12,695,131 13,731,788 8,021,648 6,461,794 5,581,142 5,285,862 6,000,509 9,180,534 10,708,534 1,787,913 2,631,921 925,783 2,68Q,446 2,932,837 3,439,296 3,547,975 4,082,071 2,225,165 5,424,164 6,391,541 5,929,611 4,109,596 4,041,916 5,011,027 5,176,893 5,673,115 5,756,094 834,080 1,157,862 2,289,201 393,023 205,520 354,261 543,906 711,842 676,610 164,024 327,068 72,357 72,532 118,108 101,360 89,362 113,684 146,212 52,988 57,256 58,789 - 101,775 115,716 120,209 - - 197,761,213 205,178,971 207,564,618 184,501,125 194,629,899 206,381,946 214,119,802 222,937,925 222,575,034 11,051,195 2,643,929 3,151,868 14,939,327 11,982,196 13,136,901 12,981,464 16,299,993 20,924,224 236,170,381 237,976,991 234,475,249 229,918,722 236,373,284 253,729,941 263,043,817 275,566,524 284,706,583 (39,813,443) (57,417,305) (68,345,990) (92,507,675) (91,084,197) (95,658,317) (116,534,259) (91,154,912) (81,216,549) 14,269,289 17,798,624 18,770,212 34,260,317 41,656,548 45,641,947 47,928,940 49,534,039 49,822,100 3,278,612 3,517,481 3,846,573 4,952,509 3,371,227 4,551,967 4,006,588 3,525,252 3,502,003 3,689,600 2,353,498 2,715,949 1,935,715 1,624,332 1,356,479 989,470 1,031,960 1,010,109 16,632,649 15,056,401 12,405,825 18,526,669 25,122,030 21,030,134 21,299,136 17,253,122 15,503,952 2,470,163 1,587,619 1,936,913 3,291,173 1,474,933 5,558,955 5,367,056 4,832,431 3,218,361 23,321 - (5,569) (66,147) 19,610 - - - - 3,505,351 5,008,578 8,326,140 19,507,815 8,327,670 11,430,359 12,932,121 11,688,662 4,521,606 (6,906) (8,770) 14,369 43,868,985 45,315,295 47,996,043 82,408,051 81,596,350 89,561,071 92,523,311 87,865,466 77,592,500 $ 4,055,542 $ (12,102,010) $ (20,349,947) $ (10,099,624) $ (9,487,847) $ (6,097,246) $ (24,010,948) $ (3,289,446) $ (3,624,049) 1 Net expense is the difference between the expenses and program revenues of a function or program. It indicates the degree to which a function or program supports itself with its own fees and grants versus its reliance upon funding from taxes and other general revenues. Numbers in parentheses are net expenses, indicating that expenses were greater than program revenues and general revenues were needed to finance that function or program. (continued) 152 COUNTY OF BUTTE, CALIFORNIA CHANGES IN NET ASSETS (continued) LAST NINE FISCAL YEARS (accrual basis of accounting) Business-Tune activities: Expenses Sanitation Transit Total business-type activities Program Revenues Charges for services: Sanitation Transit Operating grants and contributions Total business-type activities program revenues Net Expenses General revenues Unrestricted investment earnings Gain (Loss) on Sale/Disposal of Capital Assets Miscellaneous Transfers Total general revenues Change in net assets -business-type activities Primary Government Expenses Governmental activities Business-type activities Total primary government expenses Program Revenues Governmental activities Business-type activities Total primary government program revenues Net Expenses Governmental activities Business-type activities Total primary government net expense General revenues Governmental activities Business-type activities Total primary government general revenue For the Fiscal Year Ended June 3Q, 2002 2003 2004 2005 2006 2007 2008 2009 2010 $ 4,780,855 $ 1,425,942 $ 5,129,527 $ 4,664,895 $ 4,680,195 $ 4,403,172 $ 5,486,248 $ 5,804,049 $ 4,855,077 1,796,178 2,192,068 2,243,837 2,528,381 23,907 388,537 6,577,033 3,618,010 7,373,364 7,193,276 4,704,102 4,791,709 5,486,248 5,804,049 4,855,077 4,167,002 4,553,286 4,373,835 5,579,396 6,499,022 6,662,729 5,981,595 6,094,380 6,150,774 231,793 314,320 199,588 478,840 71,499 - - - - 1,60Q,402 2,097,391 2,103,588 1,605,044 465,263 70,717 108,566 83,808 159,913 5,999,197 6,964,997 6,677,011 7,663,280 7,035,784 6,733,446 6,090,161 6,178,188 6,310,687 (577,836) 3,346,987 (696,353) 470,004 2,331,682 1,941,737 603,913 374,139 1,455,610 700,798 632,463 522,399 384,442 89,643 701,950 1,004,069 810,774 463,350 (22,132) - - - (2,528,082) - - - - 209,152 18,862 (11,506) 152,947 186,366 - - - - 8,770 (14,369) 887,818 651,325 510,893 537,389 (2,252,073) 710,720 1,004,069 810,774 448,981 $ 309,982 $ 3,998,312 $ (185,460) $ 1,007,393 $ 79,609 $ 2,652,457 $ 1,607,982 $ 1,184,913 $ 1,904,591 $ 275,983,824 $ 295,394,296 $ 302,821,239 $ 322,426,397 $ 327,457,481 $349,388,258 $ 379,578,076 $ 366,721,436 $ 365,923,132 6,577,033 3,618,010 7,373,364 7,193,276 4,704,102 4,791,709 5,486,248 5,804,049 4,855,077 282,560,857 299,012,306 310,194,603 329,619,673 332,161,583 354,179,967 385,064,324 372,525,485 370,778,209 236,170,381 237,976,991 234,475,249 229,918,722 236,373,284 253,729,941 263,043,817 275,566,524 284,706,583 5,999,197 6,964,997 6,677,011 7,663,280 7,035,784 6,733,446 6,090,161 6,178,188 6,310,687 242,169,578 244,941,988 241,152,260 237,582,002 243,409,068 26Q,463,387 269,133,978 281,744,712 291,017,270 (39,813,443) (57,417,305) (68,345,990) (92,507,675) (91,084,197) (95,658,317) (116,534,259) (91,154,912) (81,216,549) (577,836) 3,346,987 (696,353) 470,004 2,331,682 1,941,737 603,913 374,139 1,455,610 (40,391,279) (54,070,318) (69,042,343) (92,037,671) (88,752,515) (93,716,580) (115,930,346) (90,780,773) (79,760,939) 43,868,985 45,315,295 47,996,043 82,408,051 81,596,350 89,561,071 92,523,311 87,865,466 77,592,500 887,818 651,325 510,893 537,389 (2,252,073) 710,720 1,004,069 810,774 448,981 44,756,803 45,966,620 48,506,936 82,945,440 79,344,277 90,271,791 93,527,380 88,676,240 78,041,481 Change in net assets Governmental activities 4,055,542 (12,102,010) (20,349,947) (10,099,624) (9,487,847) (6,097,246) (24,010,948) (3,289,446) (3,624,049) Business-type activities 309,982 3,998,312 (185,460) 1,007,393 79,609 2,652,457 1,607,982 1,184,913 1,904,591 Total primary government change in net assets $ 4,365,524 $ (8,103,698) $ (2Q,535,407) $ (9,092,231) $ (9,408,238) $ (3,444,789) $ (22,402,966) $ (2,104,533) $ (1,719,458) Source: Auditor-Controller, County of Butte Note: The Government-wide reporting requirements related to the implementation of GASB 34 were initiated during fiscal year 2001-02. We therefore only have nine years of data available to report. 153 COUNTY OF BUTTE, CALIFORNIA FUND BALANCES, GOVERNMENTAL FUNDS LAST NINE FISCAL YEARS (modified accrual basis of accounting) General Fund: Reserved for: Encumbrances Imprest cash Prepaid items Deposits with others General restrictions Debt service Inventories Unreserved: Designated Undesignated Total general fund balance All other Governmental Funds: Reserved for: Encumbrances Imprest cash Prepaid items Deposits with others Long-term loans receivable) Legislative/ Grant restrictions Debt service Inventories Unreserved: Designated, reported in: Special revenue funds Undesignated, reported in: Special revenue funds Capital projects funds Total other governmental fund balances For the Fiscal Year Ended June 3Q, 2002 2003 2004 2005 2006 2007 2008 2009 2010 $ 7,069,736 $ 7,257,572 $ 6,409,889 $ 5,130,723 $ 5,535,099 $ 2,829,192 $ 4,164,873 $ 2,437,136 $ 2,348,768 49,695 44,270 44,270 45,145 45,095 45,595 44,095 44,245 84,345 - - 1,100 4,140 15,503 1,138 - 1,888 1,848 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 15,695,241 18,132,280 21,069,956 3,165,083 5,196,551 5,586,824 10,611,120 11,560,087 13,844,851 1,091,371 4,656,265 787,644 787,482 792,978 808,994 801,259 1,127,040 1,572,685 - - - - - - - - 154,369 2,388,433 2,502,727 2,830,188 24,366,630 19,626,639 3,894,494 91,826 232,510 115,000 16,192,849 16,078,711 8,768,646 10,776,705 15,813,037 16,857,031 10,160,457 9,059,057 16,710,645 $ 42,489,825 $ 48,674,325 $ 39,914,193 $ 44,278,408 $ 47,027,402 $ 30,025,768 $ 25,876,130 $ 24,464,463 $ 34,835,011 $ 10,347,610 $ 7,304,377 $ 5,412,910 $ 4,389,886 $ 2,988,183 $ 10,563,974 $ 17,850,098 $ 11,526,534 $ 10,662,955 2,940 5,365 5,215 1,215 1,165 1,815 1,750 1,700 2,700 - - 2,190 297 945 1,766 - 4,088 8,945 - - 297 500 297 297 297 297 297 3,241,840 3,134,461 2,682,411 2,226,168 2,074,395 - - - - 4,369,157 4,006,428 3,862,737 731,130 948,144 1,961,755 21,963,318 22,424,759 25,932,333 - 1,150,916 417,810 8,061,829 7,684,891 8,970,613 5,522,525 7,943,619 7,875,805 95,668 119,333 280,034 267,580 310,556 231,586 293,954 273,707 284,270 5,937,454 5,594,935 5,356,679 6,053,130 7,102,915 23,931,864 - 4,558,541 4,460,824 9,327,658 7,339,842 8,004,013 10,816,972 14,336,025 8,439,849 1,249,734 12,604,968 15,206,987 (2,402,568) (1,331,347) 501,318 90,015 129,562 220,031 848,587 295,664 551,122 $ 30,919,759 $ 27,324,310 $ 26,525,614 $ 32,638,722 $ 35,577,078 $ 54,323,550 $ 47,730,263 $ 59,633,877 $ 64,986,238 1 During the fiscal year 2006-2007, the County changed the way it accounts for loans receivable by offsetting loan: receivable with deferred revenue instead of restricted fund balance. Source: Auditor-Controller, County of Butte Note 1: The Government-wide reporting requirements related to the implementation of GASB 34 were initiated during fiscal year 2001 -02. We therefore only have nine years of data available to report. Note 2: The substantial increase or decrease in fund balance reserved or designated is explained in Management's Discussion and Analysis. 154 COUNTY OF BUTTE, CALIFORNIA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST NINE FISCAL YEARS (modified accrual basis of accounting) REVENUES Taxes Licenses and permits Fines, forfeitures, and penalties Revenues from uses of money and property Aid from other governments Charges for services Other Total revenues EXPENDITURES: Current: General government Public protection Public ways and facilities Health and sanitation Public assistance Education Recreation and cultural services Debt Service: (1) Principal Interest Cost of issuance Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES): Sales of capital asset Transfers in Transfer out Proceeds from issuance of debt Total other financing sources (uses) SPECIAL ITEM: Payment for unfunded actuarial liability Net change in fund balances Debt service as a percentage of noncapital expenditures For the Fiscal Year Ended June 3Q, 2002 2003 2004 2005 2006 2007 2008 2009 2010 $ 21,237,501 $ 22,753,793 $ 23,874,775 $ 41,845,457 $ 47,395,136 $ 52,384,206 $ 53,797,238 $ 54,091,251 $ 54,334,212 3,398,347 3,988,539 4,360,823 5,143,170 4,322,084 4,861,476 4,604,498 3,720,735 3,123,312 2,115,318 2,255,129 2,741,657 1,829,081 2,446,572 2,728,930 3,139,816 3,307,221 3,835,387 3,533,053 3,053,170 2,240,655 3,081,942 1,337,150 5,285,289 4,982,969 4,063,901 2,766,269 224,680,201 223,632,528 221,567,801 217,938,378 231,688,344 240,529,554 248,376,861 256,476,762 258,983,988 20,091,942 22,705,240 22,558,577 23,166,702 22,885,477 26,645,205 27,757,939 29,300,650 34,248,626 5,637,472 3,912,473 6,852,202 19,506,239 8,327,670 11,430,359 12,932,121 11,688,660 4,521,606 280,693,834 282,300,872 284,196,490 312,510,969 318,402,433 343,865,019 355,591,442 362,649,180 361,813,400 13,295,361 13,564,592 23,53Q,072 28,041,583 18,353,948 2Q,440,643 21,640,700 21,456,259 23,438,187 68,903,950 72,318,779 73,266,989 80,974,652 80,525,118 89,379,218 97,512,700 93,854,161 85,264,302 14,798,252 13,942,349 15,811,238 10,943,957 14,332,609 17,037,110 18,547,425 22,211,130 18,183,430 48,966,706 54,706,422 55,626,131 55,683,804 59,429,613 65,632,200 72,966,299 67,928,959 71,610,453 122,398,997 127,320,047 126,018,804 128,551,888 131,916,991 137,501,206 142,597,681 143,751,638 142,383,811 2,323,995 2,595,937 2,618,241 2,604,840 2,819,417 3,056,164 3,397,317 3,227,903 2,714,077 4,065,679 629,744 455,878 356,178 540,284 475,794 574,995 538,899 344,806 - - - 4,160,315 5,562,451 2,854,718 6,774,954 746,483 767,210 - - - 3,259,717 4,218,911 4,226,524 3,599,724 2,597,561 2,398,702 162,344 19,300 274,752,940 285,077,870 297,327,353 314,739,278 317,718,642 340,603,577 367,611,795 356,312,993 347,104,978 5,940,894 (2,776,998) (13,130,863) (2,228,309) 683,791 3,261,442 (12,020,353) 6,336,187 14,708,422 26,488 55,949 16,283 184,210 22,973 24,014 463,507 72,392 68,894 6,675,214 6,628,970 11,545,776 20,333,417 23,387,710 19,802,941 24,328,799 20,862,960 21,674,746 (6,675,214) (6,358,889) (11,277,305) (22,854,312) (19,446,663) (19,292,699) (23,638,040) (20,574,185) (20,525,060) 1,428,917 5,040,019 52,387,282 15,474,418 1,254,300 23,535 123,162 1,455,405 5,366,049 52,672,036 13,137,733 5,218,320 557,791 1,277,428 361,167 1,218,580 (49,100,000) $ 7,396,299 $ 2,589,051 $ (9,558,827) $ 10,909,424 $ 5,902,111 $ 3,819,233 $ (10,742,925) $ 6,697,354 $ 15,927,002 n/a n/a n/a 2.5% 3.1% 2.1% 2.9% 1.0% 0.9% Source: Auditor-Controller, County of Butte Note 1: Debt service was shown as a separate function during fiscal year 2004-05. Note 2: The Government-wide reporting requirements related to the implementation of GASB 34 were initiated during fiscal year 2001 -02. We therefore only have nine years of data available to report. 1SS COUNTY OF BUTTE, CALIFORNIA PROPERTY TAXES LEVIES AND COLLECTIONS DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS (modified accrual basis of accounting) Total Percent of Percent of Secured Current Current Delinquent Total Tax Total Tax Fiscal Property Tax Taxes Tax Collections Collections Year Tax Levy Collections Collected Collections (1) June 30 (2) to Tax Levy 2001 $ 14,917,329 $ 14,469,809 97.00% $ 392,184 $ 14,861,993 99.63% 2002 15,421,306 14,650,240 95.00% 427,151 15,077,391 97.77% 2003 16,513,410 15,852,874 96.00% 439,062 16,291,936 98.66% 2004 17,611,617 16,907,152 96.00% 397,491 17,304,643 98.26% 2005 19,717,336 19,313,601 97.95% 372,631 19,686,232 99.84% 2006 21,909,684 21,399,946 97.67% 445,534 21,845,480 99.71% 2007 24,617,283 23,886,338 97.03% 465,174 24,351,512 98.92% 2008 26,619,209 25,813,325 96.97% 696,536 26,509,861 99.59% 2009 26,419,095 25,290,109 95.73% 828,468 26,118,577 98.86% 2010 27,320,121 26,174,805 95.81% 946,894 27,121,699 99.27% Note 1: Prior years restated to include only current year collections of delinquent taxes. Note 2: Includes current and teeter collections. $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ®Secured $14,917,329 15,421,306 16,513,410 17,611,617 19,717,336 21,909,684 24,617,283 26,619,209 26,419,095 27,320,121 ®Current $14,469,809 14,650,240 15,852,874 16,907,152 19,313,601 21,399,946 23,886,338 25,813,325 25,290,109 26,174,805 Source: Auditor-Controller, County of Butte 156 COUNTY OF BUTTE, CALIFORNIA ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Total Fiscal Secured Utility Unsecured Assessed Direct Year Roll Roll Roll Value Tax Ratio 2001 9,809,069,349 19,591,858 572,029,882 10,400,691,089 1.0% 2002 10,210,901,077 20,289,420 596,527,153 10,827,717,650 1.0% 2003 10,940,529,305 18,939,397 622,967,322 11,582,436,024 1.0% 2004 11,624,793,072 18,939,909 635,629,383 12,279,362,364 1.0% 2005 12,720,999,330 21,586,369 628,596,023 13,371,181,722 1.0% 2006 14,047,057,479 21,878,301 671,570,735 14,740,506,515 1.0% 2007 15,705,066,165 19,279,234 728,715,203 16,453,060,602 1.0% 2008 17,253,582,073 8,367,262 772,788,613 18,034,737,948 1.0% 2009 17,826,407,338 7,930,798 836,897,313 18,671,235,449 1.0% 2010 17,361,801,601 5,152,377 868,120,034 18,235,074,012 1.0% Note: Total estimated actual value of taxable property was not reasonably estimable. Source: Auditor-Controller, County of Butte 157 COUNTY OF BUTTE, CALIFORNIA PROPERTY TAX RATES -DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Basic Butte Paradise Fiscal Countywide City of City of Butte County Richvale Lake Irrigation Year Levy Chico Oroville Schools College Schools Sewer Madrone District Total 2001 1.000% 0.0000% 0.0000% 0.1916% 0.0000% 0.0000% 0.0119% 1.2500% 0.0720% 2.5255% 2002 1.000% 0.0000% 0.0000% 0.2072% 0.0000% 0.0000% 0.0280% 1.2500% 0.0780% 2.5632% 2003 1.000% 0.0000% 0.0000% 0.1810% 0.0188% 0.0000% 0.0175% 1.2500% 0.0340% 2.5013% 2004 1.000% 0.0000% 0.0000% 0.2229% 0.0171% 0.0000% 0.0078% 1.2500% 0.0390% 2.5368% 2005 1.000% 0.0000% 0.0000% 0.2177% 0.0160% 0.0000% 0.0000% 1.2500% 0.0340% 2.5177% 2006 1.000% 0.0000% 0.0000% 0.2118% 0.0209% 0.0000% 0.0000% 1.2500% 0.0330% 2.5157% 2007 1.000% 0.0000% 0.0000% 0.2518% 0.0209% 0.0000% 0.0000% 1.0200% 0.0270% 2.3197% 2008 1.000% 0.0000% 0.0000% 0.2507% 0.0209% 0.0000% 0.0000% 1.0200% 0.0240% 2.3156% 2009 1.000% 0.0000% 0.0000% 0.2488% 0.0209% 0.0000% 0.0000% 1.0200% 0.0220% 2.3117% 2010 1.000% 0.0000% 0.0000% 0.3109% 0.0209% 0.0000% 0.0000% 1.0200% 0.0260% 2.3778% Note: California voters, on June 6, 1978, approved a constitutional amendment to Article XIIIA of the California Constitution, commonly known as Proposition 13, which limits the taxing power of the California public agencies. Legislation enacted by the California Legislature to implement Article XIIIA (Statutes of 1978 Chapter 292, as amended) provides that not withstanding any other law, local agencies may not levy property tax except to pay debt service on indebtedness approved by voters prior to 3u1~~ } , }~7 ~, ~,~} Ith~~atl~ ~arJr~ ~,,,,ajl+~ ~i}} }evy the maximum tax permitted by Article XIIIA of $1 per $100 of full cash value. Assessed value is equal to full cash value, pursuant to Senate Bill 1656, Statutes of 1978. The rates shown above are percentages of assessed valuation. 1.4000% 1.2000% 1.0000% 0.8000% 0.6000% 0.4000% 0.2000% 0.0000% ®City of Chico ®City of Oroville ©Schools OButte College ^Butte County Schools ®Richvale Sewer ®Lake Madrone ®Paradise Irrigation District Source: Auditor-Controller, County of Butte I5g COUNTY OF BUTTE, CALIFORNIA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND PRIOR YEAR Taxpayer Rank Pacific Gas and Electric Corporation Wild Goose Storage, Inc. Pacific Bell California Chico Mall Partners LP California Water Service Farmland Reserve, Inc. Smucker Quality Beverages Pacific Realty Associates Chico Crossroads LP Pacific Coast Producers Pan Pacific Development LLC Sprint Communications Co. Largest Secured Property Valuation Other Secured Taxpayers Total Secured Property Valuation -net of exemptions 876,382,584 4.806% 17,358,691,428 $ 18,235,074,012 1 $ 346,921,754 2.595% 2 91,461,818 0.684% 3 58,258,685 0.436% 5 28,858,611 0.216% 4 36,651,410 0.274% 6 24,011,550 0.180% 7 24,002,189 0.180% 8 23,695,716 0.177% 633,861,733 4.741% 12,737,319,989 $ 13,371,181,722 Note L In accordance with GASB Statement No. 44, the following table presents information for the County's principal taxpayers as of June 30, 2010 and should also be presented for June 30, 2001. However, June 30, 2001 information is not available and June 30, 2005 information will be presented until there is a nine year separation. Source: Auditor-Controller, County of Butte 2010 2005 (1) Percentage Percentage Assessed of Total Assessed of Total Valuation Assessed Rank Valuation Assessed 1 $ 435,779,594 2.390% 2 169,742,532 0.931% 3 51,354,087 0.282% 4 35,315,910 0.194% 5 33,926,649 0.186% 6 31,743,821 0.174% 7 30,518,782 0.167% 8 30,307,001 0.166% 9 29,925,000 0.164% 10 27,769,208 0.152% 159 COUNTY OF BUTTE, CALIFORNIA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Total Total Legal Net Debt Legal Legal Fiscal Assessed Debt Applicable to Debt Debt Margin/ Year Valuation (1) Limit (2) Limit (3) Margin (4) Debt Limit 2001 10,400,691,089 130,008,639 - 130,008,639 100% 2002 10,827,717,650 135,346,471 - 135,346,471 100% 2003 11,582,436,024 144,780,450 - 144,780,450 100% 2004 12,279,362,364 153,492,030 - 153,492,030 100% 2005 13,371,181,722 167,139,772 - 167,139,772 100% 2006 14,740,506,515 184,256,331 - 184,256,331 100% 2007 16,453,060,602 205,663,258 - 205,663,258 100% 2008 18,034,737,948 225,434,224 - 225,434,224 100% 2009 18,671,235,449 233,390,443 - 233,390,443 100% 2010 18,235,074,012 227,938,425 - 227,938,425 100% Note: (1) Total assessed valuation includes exempt property. (2) The legal debt limit is set by statute at 1.25 percent of the total assessed valuation. (3) The County does not have any General Bonded Debt. (4) The legal debt margin is the legal debt limit reduced by all general bonded debt. 20,000,000,000 15,000,000,000 10,000,000,000 5,000,000,000 2001 2003 2005 2007 2009 ®Total Assessed Valuation (1) ®Legal Debt Margin (4) Source: Auditor-Controller, County of Butte 160 COUNTY OF BUTTE, CALIFORNIA RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO TAXABLE ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: County Population (1) 205,400 207,300 210,800 212,237 214,119 217,209 218,069 220,407 220,748 221,331 Gross Assessed Bonded Value Debt Debt Payable from Enterprise Net Revenue Debt 10,400,691,089 - - - 10,827,717,650 - - - 11,582,436,024 - - - 12,279,362,364 - - - 13,371,181,722 - - - 14,740,506,515 - - - 16,453,060,602 - - - 18,034,737,948 - - - 18,671,235,449 - - - 18,235,074,012 - - - (1) State of California, Employment Development Department, Labar ik~arlcet IrrforrnaMierr~ DreT~ian (www.labormarketinfo.edd.ca.gov/cgi/dataanalysis~ Source: Auditor-Controller, County of Butte Ratio of Net Net Bonded Bonded Debt to Debt per Assessed Value Capita 0.000% - 0.000% - 0.000% - 0.000% - 0.000% - 0.000% - 0.000% - 0.000% - 0.000% - 0.000% - 161 COUNTY OF BUTTE, CALIFORNIA RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (In Thousands, except Per Capita) Governmental Activities Business-type Activities Certificates Certificates Total Percentage Percentage Fiscal of Loans/ Capital of Capital Primary of Assessed of Personal Per Year Bonds Participation Notes Leases Loans Participation Leases Government Value Income Capita 2001 1,167 4,675 5,077 1,809 - - - 12,728 0.1176% 0.27% 60 2002 1,109 4,440 - 2,998 - - - 8,547 0.0738% 0.18% 40 2003 1,052 9,345 - 2,366 - - 2,258 15,021 0.1223% 0.30% 70 2004 50,879 5,150 2,492 1,019 - - 1,780 61,320 0.4586% 1.14% 282 2005 61,515 4,540 4,111 688 - - 1,289 72,143 0.4894% 1.24% 332 2006 57,212 3,920 3,935 1,479 500 - 784 67,830 0.4123% 1.11% 311 2007 56,424 3,290 2,903 1,097 450 12,025 303 76,491 0.4649% 1.18% 351 2008 50,575 2,650 2,703 1,134 400 12,025 20 69,506 0.3854% 0.98% 315 2009 50,492 2,300 2,494 1,029 350 12,025 20 68,710 0.3680% 1.02% 311 2010 50,403 1,945 2,278 922 300 11,300 20 67,167 0.3683% 0.94% 303 Source: Auditor-Controller, County of Butte 162 COUNTY OF BUTTE, CALIFORNIA OVERLAPPING BONDED DEBT JUNE 30, 2010 BUTTE COUNTY 2009-10 Assessed Valuation: $19,285,763,930 (includes unitary utility valuation) Redevelopment Incremental Valuation: 4,156256,702 Adjusted Assessed Valuation: $15,129,507,228 Total Debt County's Share of OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/10 % Applicable (1) Debt 6/30/10 Butte-Glenn Community College District $79,673,079 85.016% $ 67,734,865 Yuba Joint Community College District 93,316,325 0.185 172,635 Chico Unified School District 53,805,000 100. 53,805,000 Marysville Joint Unified School District 69,493,777 1.272 883,961 Oroville Union High School District 20,636,385 100. 20,636,385 Manzanita School District 745,000 100. 745,000 Oroville School District 4,821,411 100. 4,821,411 Thermalito Union School District 1,939,515 100. 1,939,515 City 1915 Act Bonds 370,000 100. 370,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $151,108,772 DIRECT AND OVERLAPPING GENERAL FUND DEBT: Butte County Certificates of Participation $13,245,000 100. % $13,245,000 Butte County Pension Obligations 49,895,000 100. 49,895,000 Butte-Glenn Community College District General Fund Obligations 3,085,000 85.016 2,622,744 Chico Unified School District Certificates of Participation 1,935,000 100. 1,935,000 Paradise Unified School District Certificates of Participation 1,305,000 100. 1,305,000 City of Oroville Pension Obligations 6,825,000 100. 6,825,000 City of Paradise Certificates of Participation 15,000 100. 15,000 City of Paradise Pension Obligations 10,269,920 100. 10269,920 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $86,112,664 COMBINED TOTAL DEBT $237,221,436 (2) (1) Percentage of overlapping agency's assessed valuation located within boundaries of the county. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to 2009-10 Assessed Valuation: Total Overlapping Tax and Assessment Debt ...................................0.78% Ratios to Adjusted Assessed Valuation: Combined Direct Debt ($63,140,000) ............................................0.42% Combined Total Debt ........................................................................1.57% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10: $0 AB: ($450) Source: California Municipal Statistics, Inc. 163 COUNTY OF BUTTE, CALIFORNIA RATIO OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General Obligation Bonds $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Less: Amounts Available in Debt Service Fund - - - - - - - - - - Total Net Obligation Bonds Outstanding $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Percentage of Estimated Actual Taxable Value of Property 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.00% Per Capita $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements. Source: Auditor-Controller, County of Butte 164 COUNTY OF BUTTE, CALIFORNIA DEMOGRAPHICS AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Fiscal Personal Year Population (1) Income (2) Per Capita Personal Income School Unemployment Enrollment (3) Rate (1) 2001 207,300 4,798,095,000 23,146 34,433 6.5% 2002 210,800 4,879,434,000 23,147 34,454 7.3% 2003 212,237 5,025,193,000 23,677 34,260 7.4% 2004 214,119 5,393,454,000 25,189 33,768 7.2% 2005 217,209 5,811,000,000 26,753 33,385 6.7% 2006 217,209 6,099,731,000 28,082 33,192 4.9% 2007 218,069 6,494,706,000 29,783 32,827 6.1% 2008 220,407 7,100,740,000 32,216 32,559 8.2% 2009 220,748 6,752,580,000 30,590 32,069 13.2% 2010 221,331 7,163,944,000 32,368 31,539 13.1 Detail of estimated population, as July, 2010: Incorporated Cities/Towns: City of Biggs 1,800 City of Chico 87,713 City of Gridley 6,285 City of Oroville 14,490 Town of Paradise 26,465 Total of incorporated 136,753 Total of unincorporated 84, 578 Total Population 221,331 Sources: (1) State of California, Employment Development Department, Labor Market Information Division (www.labormarketinfo.edd.ca.gov/cgi/dataanalysis/) (2) Bureau of Economic Analysis (www.bea.gov/bea/regional/reis~ (3) Ed-data. (www.ed-data.kl2.ca.us) 16$ COUNTY OF BUTTE, CALIFORNIA MISCELLANEOUS STATISTICAL INFORMATION JUNE 30, 2010 Geographical Location: One of the State's origina127 counties, Butte County is located in the northern portion of the Sacramento Valley. Rising from the Sacramento River, its western boundary, to the Sierra Nevada Mountains, its eastern perimeter, the county's 1,665 square miles range in elevation from sixty feet to over 7,000 feet, resulting in a considerable variation in climate. Area of County: County Seat: 1,665 square miles Oroville, California Date of Incorporation: February 18, 1850 Form of Government: Fiscal Year Begins County Employees General Law County, governed by afive-member Board of Supervisors July 1 as of June 30, 2010: 2,262 Employment Distribution (2006 Annual Average)(1): Agriculture 3.9% Information 1.5% Other Services 4.3% Leisure and Hospitality 10.2% Educational and Health Services 18.1% Government 23.4% Professional & Business Services 6.4% Financial Activities 6.1% Trade, Transportation, & Utilities 17.7% Manufacturing 5.6% Natural Resources, Mining, & Construction 2.8% Natural Resources, Minivg, ManufaRuring & ConstruRion ggricWNre Information 6% 3~ 4% 2% Other Services 1Yade, ltansportation, & Utilities 4 18% Fivavcial Activities 6% Educational avd Health Services Professional & Busivess Services 18% 6% Source: State of California, Employment Development Department, Labor Market Information Division, Snap Shot (http://www.calmis.ca.gov/file/COsnaps/buttesnap.pd~ 166 COUNTY OF BUTTE, CALIFORNIA PRINCIPAL EMPLOYERS JUNE 30, 2010 and Nine Years Ago Major County Employers 2010 12,052 Percentage of Total County Company Employees Rank Employment Employees California State University, Chico 2,275 1 2.38% n/a Butte County 2,262 2 2.37% n/a Enloe Medical Center, Inc. 1,825 3 1.91% n/a Butte Glenn Community College 1,500 4 1.57% n/a Oroville Hospital 1,170 5 1.23% n/a Tyme Maidu Tribe of Berry Creek 700 6 0.73% n/a Feather River Hospital 620 7 0.65% n/a Associated Students California 600 8 0.63% n/a Butte County Office of Education 600 9 0.63% n/a Electronic Data Systems Company 500 10 0.52% n/a Total 12.62% Note: June 30, 2001 complete information is not available. 2001 Percentage of Total County Rank Employment n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Source: www.labormarketinfo.eee.ca.aov/maiorer/countvmaiorer.as~ 167 COUNTY OF BUTTE, CALIFORNIA OPERATING INDICATORS BY FUNCTION LAST SEVEN FISCAL YEARS For the Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 2009 2010 Function/Program Sheriff Number of Bookings 11,356 12,964 13,543 13,920 12,693 14,241 Coroner Case Load 1,588 1,618 1,701 1,709 1,632 1,677 Calls for Services -Unincorporated Areas 45,536 43,585 43,261 56,131 64,121 63,871 Fire Medical Assistance 13,383 13,964 13,240 8,287 8,101 8,021 Fires Extinguished 905 884 740 753 1,311 1,089 Probation Juveniles in Detention Facilities (bed days) 22,354 19,967 20,987 21,484 19,242 17,949 Waste Management Landfill Tonnage 209,466 202,189 191,676 196,153 192,073 163,370 Recycling Tonnage 22,762 20,186 13,640 26,484 23,377 19,390 County Library Total Circulation 653,985 662,590 723,178 744,881 826,821 910,249 Reference Questions Answered 49,276 41,672 37,703 36,948 38,546 42,366 Patrons 97,023 106,696 96,049 90,702 93,616 94,574 Programs Offered 1,106 975 1,169 1,019 1,214 1,353 Program Attendance 20,788 18,917 22,510 23,439 30,916 34,764 Visitor Count 581,194 628,430 662,302 656,949 723,460 756,901 Clerk-Recorder Official Records Recorded 87,054 77,545 74,963 77,497 61,002 51,388 Vital Records Copies Issued 12,201 12,813 13,179 13,903 13,629 13,689 Official Records Copies Issued 6,942 7,319 6,665 6,442 6,172 5,408 Community Health Agency Facilities Inspections N/A 3,200 4,015 4,905 5,577 5,276 Public Social Services Ca1WORKS Clients 134,259 122,799 115,616 121,734 105,953 103,947 Food Stamp Clients 167,912 206,012 209,550 221,324 228,513 251,732 Medi-Cal Clients 119,660 152,590 148,090 144,901 159,384 157,048 In-Home Support Services 32,355 33,044 30,927 36,416 35,951 37,593 Foster Care Placements 9,682 9,166 8,859 8,343 8,417 7,542 Child Welfare Services 11,850 12,193 12,019 11,130 12,282 11,237 Note: Information was not available for ten years' reporting, but will be accumulated over time as it becomes available Source: Auditor-Controller, County of Butte 13,487 1,734 63,787 11,941 2,169 17,564 152,257 13,768 840,078 27,449 79,326 1,415 28,395 842,112 52,738 12,430 4,272 5,714 102,663 290,417 169,544 36,322 7,065 10,150 168 COUNTY OF BUTTE, CALIFORNIA CAPITAL ASSET STATISTICS BY FUNCTION LAST SEVEN FISCAL YEARS Function/Program Sheriff Patrol Stations Patrol Vehicles Fire Stations Trucks Waste Management Landfills Capacity in Tons County Libraries Branch Libraries Book Mobiles Books in Collection 4 4 4 4 4 4 4 65 65 65 60 60 50 50 26 26 26 26 26 26 26 38 40 40 40 40 40 40 1 1 1 1 1 1 1 13,141,300 12,608,230 12,427,121 12,257,452 12,088,756 11,931,691 11,793,202 6 6 6 6 6 6 6 1 1 1 1 1 1 1 284,355 296,795 299,262 309,681 306,155 321,799 302,828 Note: Information was not available for ten years' reporting, but will be accumulated over time as it becomes available. Source: Auditor-Controller, County of Butte For the Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 2009 2010 169 COUNTY OF BUTTE, CALIFORNIA FULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION/ PROGRAM LAST FIVE FISCAL YEARS Function/Program General government: Legislative and Administrative Finance Purchasing Treasurer Assessor Human Resources County Counsel Elections Development Services Recorder Other General Public Protection: Judicial Police Protection Detention and Correction Fire Protection Probation Water Services Other Protection Public ways and Facilities: Public ways Health and Sanitation: Health Agriculture Public Assistance: Aid Programs Veterans Services Other Assistance Education: Library Services Farm Advisor County Business-type Functions Full-time Equivalent Employees 2006 2007 2008 2009 2010 28 24 35 35 38 30 35 19 16 20 3 4 6 6 6 28 24 26 28 30 44 44 44 38 39 12 13 22 17 18 12 12 9 9 9 14 8 13 60 60 44 45 42 40 40 17 17 15 12 11 11 11 14 - - 97 97 104 118 115 167 163 175 163 175 167 159 168 191 176 3 - 4 5 4 92 102 105 94 93 5 5 4 4 4 7 8 7 6 6 106 117 106 103 100 571 565 591 579 566 22 19 24 24 28 555 565 557 514 521 1 2 3 3 3 111 122 101 107 109 54 56 58 43 43 3 3 3 3 4 Landfill 25 25 23 21 20 Internal Service Funds 66 67 67 24 24 2,295 2,312 2,345 2,263 2,262 Note: Information was not available for ten years' reporting, but will be accumulated over time as it becomes available Source: Human Resources Department, County of Butte 170 o° Ali °~ o ~ ~ o ~ ~ ~- - 0 \C _„ y \U N~ Glossary urr COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report ACCOUNTS PAYABLE. Ashort-term liability account reflecting amounts owed to private persons or organizations for goods and services received by a government. ACCOUNTS RECEIVABLE. An asset account reflecting amounts due from private persons or organizations for goods and services furnished by a government (but not including amounts due from other funds or other governments). ACCRUAL BASIS. The recording of the financial effects on a government of transactions and other events and circumstances that have cash consequences for the government in the periods in which those transactions, events and circumstances occur, rather than only in the periods in which cash is received or paid by the government. ACCUMULATED DEPRECIATION. Acontra-asset account used to report the accumulation of periodic credits to reflect the expiration of the estimated service life of capital assets. ADVANCE FROM OTHER FUNDS. A liability account used to record noncurrent portions of a long-term debt owed by one fund to another fund within the same reporting entity. See DUE TO OTHER FUNDS and INTERFUND RECEIVABLE/PAYABLE. ADVANCE TO OTHER FUNDS. An asset account used to record noncurrent portions of a long-term loan from one fund to another fund within the same reporting entity. See DUE FROM OTHER FUNDS. AGENCY FUND. A fund normally used to account for assets held by a government as an agent for individuals, private organizations or other governments and/or other funds. AMORTIZATION. (1) The portion of the cost of a limited-life or intangible asset charged as an expense during a particular period. (2) The reduction of debt by regular payments of principal and interest sufficient to retire the debt by maturity. APPROPRIATION. A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation usually is limited in amount and time it may be expended. ASSESSED VALUATION. A valuation set upon real estate or other property by a government as a basis for levying taxes. AUDITOR'S REPORT. In the context of a financial audit, a statement by the auditor describing the scope of the audit and the auditing standards applied in the examination, and setting forth the auditor's opinion on the fairness of presentation of the financial information in conformity with GAAP or some other comprehensive basis of accounting. BALANCE SHEET. The financial statement disclosing the assets, liabilities and equity of an entity at a specified date in conformity with GAAP. BASIC FINANCIAL STATEMENTS (BFS). The minimum combination of financial statements and note disclosures required for fair presentation in conformity with GAAP. Basic financial statements have three components: government-wide financial statements, fund financial statements and notes to the financial statements. BASIS OF ACCOUNTING. A term used to refer to when revenues, expenditures, expenses, and transfers -and the related assets and liabilities are recognized in the accounts and reported in the financial statements. Specifically, it relates to the riming of the measurements made, regardless of the nature of the measurement, on either the cash or the accrual method. BUDGET. A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. Used without any modifier, the term usually indicates a financial plan for a single fiscal year. The term "budget" is used in two senses in practice. Sometimes it designates the financial plan presented to the appropriating governing body for adoption, and sometimes, the plan finally approved by that body. BUDGETARY CONTROL. The control or management of a government or enterprise in accordance with an approved budget to keep expenditures within the limitations of available appropriations and available revenues. CAPITAL ASSETS. Long-lived tangible assets obtained or controlled as a result of past transactions, events or circumstances. Capital assets include buildings, equipment, and improvements other than buildings, land and infrastructure. In the private sector, these assets are referred to most often as property, plant and equipment. CAPITAL EXPENDITURES. Expenditures resulting in the acquisition of or addition to the government's general capital assets. CAPITALIZATION POLICY. The criteria used by a government to determine which outlays should be reported as capital assets. CAPITAL LEASE. An agreement that conveys the right to use property, plant or equipment, usually for a stated period of time. See LEASE-PURCHASE AGREEMENTS. CAPITAL PROJECTS FUND. A fund created to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). 171 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report CASH BASIS. A basis of accounting under which transactions are recognized only when cash is received or disbursed. CASH WITH FISCAL AGENT. An asset account reflecting deposits with fiscal agents, such as commercial banks, for the payment of bond principal and interest. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING PROGRAM. A voluntary program administered by the GFOA to encourage governments to publish efficiently organized and easily readable CAFR's and to provide technical assistance and peer recognition to the finance officers preparing them. CHANGE IN THE FAIR VALUE OF INVESTMENTS. The difference between the fair value of investments at the beginning of the year and at the end of the year, taking into consideration investment purchases, sales, and redemptions. COMPENSATED ABSENCES. Absences, such as vacation, illness and holidays, for which it is expected employees will be paid. The term does not encompass severance or termination pay, postretirement benefits, deferred compensation or other long-term fringe benefits, such as group insurance and long-term disability pay. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR). A financial report that encompasses all funds and component units of the government. The CAFR should contain (a) the basic financial statements and required supplementary information, (b) combining statements to support columns in the basic financial statements that aggregate information from more than one fund or component unit, and (c) individual fund statements as needed. The CAFR is the governmental units official annual report and also should contain introductory information, schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, and statistical data. CONCENTRATION OF CREDIT RISK. The risk of loss attributed to the magnitude of a governments investment in a single issuer. CONTINGENT LIABILITY. Items that may become liabilities as a result of conditions undetermined at a given date, such as guarantees, pending lawsuits, judgments under appeal, unsettled disputed claims, unfilled purchase orders and uncompleted contracts. Contingent liabilities should be disclosed within the financial statements (including the notes) when there is a reasonable possibility a loss may have been incurred. Guarantees, however, should be disclosed even though the possibility of loss maybe remote. CREDIT RISK The risk that an issuer or a counter-party to an investment will not fulfill its obligations. CURRENT FINANCIAL RESOURCES MEASUREMENT FOCUS. Measurement focus according to which the aim of a set of financial statements is to report the near-term (current) inflows, outflows, and balances of expendable (spendable) financial resources. The current financial resources measurement focus is unique to accounting and financial reporting for state and local governments and is used solely for reporting the financial position and results of operations of governmental funds. DEBT. An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of governments include bonds, time warrants and notes. DEBT SERVICE FUND. A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. DEFERRED CHARGES. Expenditures that are not chargeable to the fiscal period in which they were made but that are carried as an asset on the balance sheet, pending amortization or other disposition (e.g. bond issuance costs). Deferred charges differ from prepaid items in that they usually extend over a long period of time (more than five years) and are not regularly recurring costs of operation. DEFERRED REVENUE. Resource inflows that do not yet meet the criteria for revenue recognition. Unearned amounts are always reported as deferred revenue. In governmental funds, earned amounts also are reported as deferred revenue until they are available to liquidate liabilities of the current period. DEFICIT. (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over revenues during an accounting period or, in the case of proprietary funds, the excess of expenses over revenues during an accounting period. DEFINED BENEFIT PENSION PLAN. A pension plan having terms that specify the amount of pension benefits to be provided at a future date or after a certain period of time; the amount specified usually is a function of one or more factors such as age, years of service, and compensation. DEPRECIATION. (1) Expiration in the service life of capital assets, other than wasting assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence. (2) The portion of the cost of a capital asset, other than a wasting asset, charged as an expense during a particular period. In accounting for depreciation, the cost of a capital asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost. Through this process, the entire cost of the asset is ultimately charged off as an expense. 172 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report DESIGNATED FUND BALANCE. A portion of an unreserved fund balance that has been "earmarked" by the chief executive officer or the legislative body for specified purposes. DUE FROM OTHER FUNDS. An asset account used to indicate amounts owed to a particular fund by another fund for goods sold or services rendered. This account includes only short-term obligations on open account, not interfund loans. DUE TO OTHER FUNDS. A liability account reflecting amounts owed by a particular fund to another fund for goods sold or services rendered. These amounts include only short-term obligations on open account, not interfund loans. ECONOMIC RESOURCES MEASUREMENT FOCUS. Measurement focus under which the aim of a set of financial statements is to report all inflows, outflows, and balances affecting or reflecting an entity's net assets. The economic resources measurement focus is used for proprietary and fiduciary funds, as well as for government-wide financial reporting. It is also used by business enterprises in the private sector. ENCUMBRANCES. Commitments related to unperformed (executory) contracts for goods or services. Used in budgeting, encumbrances are not GAAP expenditures or liabilities, but represent the estimated amount of expenditures ultimately to result if unperformed contracts in process are completed. ENTERPRISE FUND. Proprietary fund type used to report an activity for which a fee is charged to external users for goods and services. EXPENDITURE-DRIVEN GRANTS. Government-mandated or voluntary nonexchange transactions in which expenditure is the prime factor for determining eligibility. Also referred to as reimbursement grants. EXCHANGE-LIKE TRANSACTION. Transaction in which there is an identifiable exchange between the reporting government and another party, but the values exchanged may not be quite equal or the direct benefits of the exchange may not be exclusively for the parties to the exchange. EXPENDITURES. Decreases in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, and intergovernmental grants, entitlement and shared revenues. EXPENSES. Outflows or other using up of assets or incurrences of liabilities (or a combination of both) from delivering or producing goods, rendering services or carrying out other activities that constitute the entity's ongoing major or central operations. EXTERNAL AUDITORS. Independent auditors typically engaged to conduct an audit of a government's financial statements. EXTERNAL INVESTMENT POOL. An arrangement that commingles (pools) the moneys of more than one legally separate entity and invests, on the participants' behalf, in an investment portfolio; one or more of the participants is not part of the sponsors reporting entity. An external investment pool can be sponsored by an individual government, jointly by more than one government, or by a nongovernmental entity. An investment pool that is sponsored by an individual state or local government is an external investment pool if it includes participation by a legally separate entity that is not part of the same reporting entity as the sponsoring government. If agovernment-sponsored pool includes only the primary government and its component units, it is an internal investment pool and not an external investment pool. FAIR VALUE. The amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in aforced or liquidation sale. FEDERAL DEPOSIT INSURANCE CORPORATION. A corporation created by the federal government that insures deposits in banks and savings associations. FIDUCIARY FUNDS. The trust and agency funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. FINANCIAL RESOURCES. Resources that are or will become available for spending. Financial resources include cash and resources ordinarily expected to be converted to cash (e. g. receivables, investments). Financial resources may also include inventories and pre-paids (because they obviate the need to expend current available resources). FISCAL AGENT. A fiduciary agent, usually a bank or county treasurer, who performs the function of paying debt principal and interest when due. FOREIGN EXCHANGE RISK. The risk that changes in exchange rate will adversely affect the fair value of an investment or a deposit. FUND. A fiscal and accounting entity with aself-balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations. 173 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report FUND BALANCE. The difference between fund assets and fund liabilities of governmental and similar trust funds. FUND FINANCIAL STATEMENTS. Basic financial statements presented on the basis of funds. Term used in contrast with government-wide financial statements. FUND TYPE. Any one of seven categories into which all funds are classified in governmental accounting. The seven fund types are: general, special revenue, debt service, capital projects, enterprise, internal service, and trust and agency. GENERAL REVENUES. All revenues that are not required to be reported as program revenues. All taxes, even those that are levied for a specific purpose, are general revenues and should be reported by type of tax -for example, property tax, sales tax, and transient occupancy tax. All other nontax revenues (including interest, grants and contributions) that do not meet the criteria to be reported as program revenues should also be reported as general revenues. GENERAL FUND. The general fund is one of five governmental fund types and typically serves as the chief operating fund of the government. The general fund is used to account for all financial resources except those required to be accounted for in another fund. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). The conventions, rules, and procedures that serve as the norm for the fair presentation of financial statements. The various sources of GAAP for state and local governments are set forth by SAS No. 69, The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles" in the Independent Auditor's Report. GOVERNMENTAL ACCOUNTING. The composite activity of analyzing, recording, summarizing, reporting and interpreting the financial transactions of governments. GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB). The ultimate authoritative accounting and financial reporting standard-setting body for state and local governments. The GASB was established in June 1984 to replace the National Council on Governmental Accounting (NCGA). GOVERNMENTAL FUNDS. Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, debt service funds, capital projects funds and permanent funds. GOVERNMENT-WIDE FINANCIAL STATEMENTS. Financial statements that incorporate all of a government's governmental and business-type activities, as well as its nonfiduciary component units. There are two basic government-wide financial statements: the statement of net assets and the statement of net activities. Both basic governmental financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. INFRASTRUCTURE. Long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams and lighting systems. INTEREST RATE RISK. The risk that changes in interest rates will adversely affect the fair value of an investment or a deposit. INTERFUND RECEIVABLE/PAYABLE. Short-term loans made by one fund to another, or the current portion of an advance to or from another fund. INTERFUND TRANSFERS. Flow of assets (such as cash or goods) between funds and blended component units of the primary government without equivalent flows of assets in return and without a requirement for payment. INTERNAL SERVICE FUND. A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on acost-reimbursement basis. JOINT VENTURE. A legal entity or other contractual arrangement in which a government participates as a separate and specific activity for the benefit of the public or service recipients and in which the government retains an ongoing financial interest. LAPSE. As applied to appropriations, the automatic termination of an appropriation. Except for indeterminate appropriations and continuing appropriations, an appropriation is made for a certain period of time. At the end of this period, any unexpended or unencumbered balance thereof lapses, unless otherwise provided by law. LEASE-PURCHASE AGREEMENTS. Contractual agreements that are termed leases, but that in substance are purchase contracts. LEGAL LEVEL OF BUDGETARY CONTROL. The level at which spending in excess of budgeted amounts would be a violation of law. LEVEL OF BUDGETARY CONTROL. The level at which a government's management may not reallocate resources without special approval from the legislative body. 174 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report LIABILITIES. Probable future sacrifices of economic benefits, arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. LOANS RECEIVABLE. An asset account reflecting amounts loaned to individuals or organizations external to a government, including notes taken as security for such loans. Loans to other funds and governments should be recorded and reported separately. MAJOR FUND. A governmental fund or enterprise fund reported as a separate column in the basic fund financial statements. The general fund is always a major fund. Otherwise, major funds are funds whose revenues/expenditures, assets or liabilities are at least 10 percent of corresponding totals for all government or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds for the same item. Any other government or enterprise fund maybe reported as a major fund if the government's officials believe that fund is particularly important to financial statement users. MANAGEMENT'S DISCUSSION AND ANALYSIS. A component of required supplementary information used to introduce the basic financial statements and to provide an analytical overview of the government's financial activities. MEASUREMENT FOCUS. A way of presenting an entity's financial performance and position by considering which resources are measured (financial or economic) and when the effects of transactions or events involving those resources are recognized (the basis of accounting). The measurement focus of government-wide financial statements, proprietary fund financial statements and fiduciary fund financial statements is economic resources. The measurement focus of governmental fund financial statements is current financial resources. MODIFIED ACCRUAL BASIS. The accrual basis of accounting adapted to the governmental fund-type measurement focus. Under it, revenues and other financial resource increments (e.g. bond issue proceeds) are recognized when they become susceptible to accrual, that is when they become both "measurable" and "available to finance expenditures of the current period." "Available" means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Generally, expenditures are recognized when the fund liability is incurred. All governmental funds, expendable trust funds and agency funds are accounted for using the modified accrual basis of accounting. OTHER FINANCING SOURCES. An increase in current financial resources that is reported separately from revenues to avoid distorting revenue trends. The use of the other financing sources category is limited to items so classified by GAAP. OPERATING LEASE. A lease dose not transfer ownership rights, risks and rewards from the lessor to the lessee, the lease is called an operation lease and is similar to a rental. OTHER FINANCING USES. A decrease in current financial resources that is reported separately from expenditures to avoid distorting expenditure trends. The use of other financing uses category is limited to items so classified by GAAP. OVERLAPPING DEBT. The proportionate share property within each government must bear of the debts of all local governments located wholly or in part within the geographic boundaries of the reporting government. Except for special assessment debt, the amount of debt of each unit applicable to the reporting unit is arrived at by (1) determining what percentage of the total assessed value of the overlapping jurisdiction lies within the limits of the reporting unit, and (2) applying this percentage to the total debt of the overlapping jurisdiction. Special assessment debt is allocated on the basis of the ratio of assessment receivable in each jurisdiction, which will be used wholly or in part to pay off the debt, to total assessments receivable, which will be used wholly or in part for this purpose. PROGRAM REVENUES. Term used in connection with the government-wide statement of activities. Revenues that derive directly from the program itself or from parties outside the reporting government's taxpayers or citizenry, as a whole; they reduce the net cost of the function to be financed from the government's general revenues. PROPRIETARY FUNDS. Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds. REBATABLE ARBITRAGE. A term used in connection with the reinvestment of the proceeds of tax-exempt debt. A requirement to remit to the federal government interest revenue in excess of interest costs when the proceeds from the sale of tax-exempt securities are reinvested in a taxable money market instrument with a materially higher yield. REPORTING ENTITY. The oversight unit and all of its component units, if any, that are combined in the CAFR/BFS. REQUIRED SUPPLEMENTARY INFORMATION. Consists of statements, schedules, statistical data or other information which, according to the GASB, is necessary to supplement, although not required to be a part of the basic financial statements. RESERVED FUND BALANCE. The portion of a governmental fund's net assets that is not available for appropriation. RESTRICTED ASSETS. Assets whose use is subject to constraints that are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. 175 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report RESTRICTED NET ASSETS. A component of net assets calculated by reducing the carrying value of restricted assets by the amount of any related debt outstanding. RETAINED EARNINGS. An equity account reflecting the accumulated earnings of an enterprise or internal service fund. REVENUE BONDS. Bonds whose principal and interest are payable exclusively from earnings of an enterprise fund. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the enterprise fund's property. RISK MANAGEMENT. All the ways and means used to avoid accidental loss or to reduce its consequences if it does occur. SELF-INSURANCE. A term often used to describe the retention by an entity of a risk of loss arising out of the ownership of property or from some other cause, instead of transferring that risk to an independent third party through the purchase of an insurance policy. It is sometimes accompanied by the setting aside of assets to fund any related losses. Because no insurance is involved, the term self insurance is a misnomer. SINGLE AUDIT. An audit performed in accordance with the Single Audit Act of 1997 and Office of Management and Budget's (OMB) Circular A-133, Audits of State and Local Governments and Non- Profit Organizarions. The Single Audit Act allows or requires governments (depending on the amount of federal assistance received) to have one audit performed to meet the needs of all federal agencies. SPECIAL DISTRICT. An independent unit of local government organized to perform a single government function or a restricted number of related functions. Special districts usually have the power to incur debt and levy taxes; however, certain types of special districts are entirely dependent upon enterprise earnings and cannot impose taxes. Examples of special districts are water districts, drainage districts, flood control districts, hospital districts, fire protection districts, transit authorities, port authorities and electric power authorities. SPECIAL REVENUE FUND. A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specified purposes. TAX AND REVENUE ANTICIPATION NOTES (TRANS). Notes issued in anticipation of the collection of taxes and revenues, usually retirable only from tax collections, and frequently only from the proceeds of the tax and revenues levy whose collection they anticipate. TRUST FUNDS. Funds used to account for assets held by a government in a trustee capacity for individuals, private organizations, other governments and/or other funds. UNDESIGNATED UNRESERVED FUND BALANCE. That portion of a fund balance that is available for spending or appropriation and has not been "earmarked" for specified purposes by the chief executive officer or the legislative body. UNQUALIFIED OPINION. An opinion rendered without reservation by the independent auditor that financial statements are fairly presented. UNRESERVED FUND BALANCE. That portion of a fund balance available for spending or appropriation in the future. UNRESTRICTED NET ASSETS. That portion of net assets that is neither restricted not invested in capital assets (net of related debt). VARIABLE-RATE INVESTMENT. An investment with terms that provide for the adjustment of its interest rate (such as the last day of the month or a calendar quarter) and that, upon each adjustment until the final maturity of the instrument or the period remaining until the principal amount can be recovered through demand, can reasonably be expected to have a fair value that will be unaffected by interest rate changes. 176