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Home My WebLink About2012 Butte CAFR - FINALCOUNTY OF BUTTE STATE OF CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Prepared Under the Supervision of: David A. Houser County Auditor-Controller Beautiful Riverbend Park- Oroville, CA Photo by Lynne Skinner COUNTY OF BUTTE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2012 Table of Contents INTRODUCTORY SECTION: Page Table of Contents i ---------------------------------------------------------------------------------------------------------------------- Letter of Transmittal v ----------------------------------------------------------------------------------------------------------------- Board of Supervisors and Principal County Officials___________________________________________________________________ ix Organization Chart--------------------------------------------------- --------- --------- --------- --------- --------- ------------- x GFOA Certificate of Achievement for Excellence in Financial Reporting_____________________________________ xi 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 ..................... Statement of Activities ....................... 13 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 ........................................... Statement of Changes in Net Assets -Investment Trust Fund Notes to the Basic Financial Statements 25 26 27 i COUNTY OF BUTTE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2012 FINANCIAL SECTION (CONTINUED): Required Supplementary Information (other than MD&A): County Employee's Retirement Plan (Defined Pension Benefit Plan): Schedule of Funding Progress ................................................................................... ................. 73 Budgetary Comparison Schedule -General Fund ....................................................... ................. 75 Budgetary Comparison Schedule -Welfare Fund ...................................................... ................. 87 Budgetary Comparison Schedule -Public Health Fund ............................................. ................. 91 Budgetary Comparison Schedule -Behavioral Health Fund ...................................... ................. 95 Budgetary Comparison Schedule -Road Fund .......................................................... ................. 99 Notes to Required Supplementary Information ........................................................... ................. 102 OTHER SUPPLEMENTARY INFORMATION: Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet .................................................................................................... .... 105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............ .... 108 Budgetary Comparison Schedules: Capital Projects Fund ...................................................................................................... .... 111 Equipment Replacement Fund ........................................................................................ .... 114 Equipment Fund .............................................................................................................. .... 115 State COPS Fund ............................................................................................................. .... 116 Transit Fund .................................................................................................................... .... 118 Housing and Community Development Fund ................................................................. .... 119 Fish and Game Fund ....................................................................................................... .... 121 Child Support Services Fund ........................................................................................... .... 122 County Service Areas Fund ............................................................................................. .... 123 IHSS Public Authority Fund ........................................................................................... .... 124 Impact Fees Special Revenue Fund ................................................................................. .... 125 Debt Service Fund ........................................................................................................... .... 126 Internal Service Funds: Combining Statement of Net Assets ........................................................................................ 131 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets ................... 133 Combining Statement of Cash Flows ....................................................................................... 135 Fiduciary Funds: Agency Funds: Combining Statement of Fiduciary Assets and Liabilities ....................................................... 141 Combining Statement of Changes in Fiduciary Assets and Liabilities .................................... 142 ii COUNTY OF BUTTE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2012 STATISTICAL SECTION: Net Assets by Component .......................................................................................................... ........ 147 Changes in Net Assets ............................................................................................................... ........ 148 Fund Balances, Governmental Funds ........................................................................................ ........ 150 Changes in Fund Balances, Governmental Funds ..................................................................... ........ 151 Property Taxes Levies and Collections ...................................................................................... ........ 152 Assessed Value of Taxable Property ......................................................................................... ........ 153 Property Tax Rates -Direct and Overlapping Governments ..................................................... ........ 154 Principal Property Tax Payers .................................................................................................... ........ 155 Legal Debt Margin Information ................................................................................................. ........ 156 Ratio of Net General Obligation Bonded Debt to Taxable Assessed Value and Net General Obligation Bonded Debt per Capita ........................................................................... ........ 157 Ratio of Outstanding by Debt by Type ...................................................................................... ........ 158 Overlapping Bonded Debt ......................................................................................................... ........ 159 Ratio of General Bonded Debt Outstanding .............................................................................. ........ 160 Demographics and Economic Statistics ..................................................................................... ........ 161 Miscellaneous Statistical Information ........................................................................................ ........ 162 Principal Employers ................................................................................................................... ........ 163 Operating Indicators by Function .............................................................................................. ........ 164 Capital Asset Statistics by Function ........................................................................................... ........ 165 Full-Time Equivalent County Government Employees by Function/Program .......................... ........ 166 GLOSSARY: Glossary to the Comprehensive Annual Financial Report ................................................................. 167 iii o~ ~ ~ o a ~ll~ o a a _ _o o -~ „~ : - __~ - ~ ?-~` ~(~ ~~ (This Page Intentionally Left Blank) iv urr o~UTtFo o _~ = o ~~ ~ BUTTE COUNTY C~uN,i~ 25 COUNTY CENTER DRIVE OROVILLE, CALIFORNIA 95965-3392 Telephone (530)-538-7607 Fax: (530)-538-7693 December 20, 2012 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, 2012, 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, 2012, 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 221,273 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 2011/2012 fiscal year, the County continued to be affected by the global recession and increasingly dire outlook from the California state government. The Board of Supervisors continues to act quickly and decisively to ensure that the County remains financially stable through the fiscal year and to create a prudent spending plan for the coming year. These actions included budget cuts and some reductions in employee benefit costs in the County. 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 possible reductions to be put in place based on lower revenue receipts that the State is expenencmg. Economy-driven impacts to County provided programs and services can be less severe with proactive management of the County's budget. Finance, 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 2011-12 Single Audit will be issued under separate cover and will be available by contacting the Auditor-Controller's office, after March 31, 2013. 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 unanticipated revenues during the year. Pursuant to Board Resolution, the County Chief Administrative vii 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. The County also maintains an encumbrance accounting system as one technique of accomplishing budgetary control and cash planning. Unencumbered appropriations lapse at the end of each fiscal year. 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, 2012, 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, 2012, 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. 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, 2011. The award was also given for the fiscal years ended June 30, 2009 and 2010. 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. Res~ectfixll~ submitted, .~~ ~ ,-~ David A. Houser County Auditor-Controller viii COUNTY OF BUTTE BOARD OF SUPERVISORS AND PRINCIPAL COUNTY OFFICIALS June 30, 2012 Board of Supervisors First District.____________________________ _______________________Bill Connelly Second District_________ _________ ___ ______ ________________Larry Wahl Third District___________________________ _______________________Maureen Kirk, Vice Chair* Fourth District _________ _________ ___ ______ ________________Steue Lambert, 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 County Counsel----------------------------------------------------------Bruce Alpert ix FAN ~~ ~ d~a~ r~tt~a~oecx„r~ ~~ 1 ~~ ~ ~ ~ ~! a J ~~i >~, ~~~.• . ~~'~~ L~ rte g~ ., ~ ~ ~' ..~ _~u~ u ~i .~ ~i~~ :I X Certificate of Achievement for Excellence in Financial Reporting l~es~ County of Butte California For its Coingrchensi~e Annual Fis~ncial R,elwrt for the Fiscal Year Bnded June 30, 2011 A Ce~tifica6e of Adueveme~rc far>3ecellence hm Financial Itepo2ting ie pseee®ted by ~e C~oveanment FSnance Ofliceis Aeeociatian of the United States end Canada to ~ovensment omits end public empl~ee retQement systems whose aompa+ehenaivoe annual >'tnauciat rePrats {CAFRs) scbiere the highest standards in gavrsnment accotmtmg and ~nancisl reportFng. ~~ ~~' ~ President `~ l~vc Direcbvr xi o~ ~ ~ o a ~ll~ o a a _ _o o -~ „~ : - __~ - ~ ?-~` ~(~ ~~ (This Page Intentionally Left Blank) xii urr U o~ ~lii,. o a ~ _ ~` o _~ „_ c ._-=- ~ _=~~_: - ~ ?~= _ ~ ~(~ ~~ 0 ~o 0 of 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 i III i 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, (the County), as of and for the year ended June 30, 2012, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County's management. 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 also audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements, 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 opinions. In our opinion, 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 as of June 30, 2012, and the respective changes in financial position and cash flows, where applicable, thereof 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 20, 2012, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise the County of Butte's basic financial statements. The introductory section, combining and individual nonmajor 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 nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or provide any assurance on it. :+~e~ a~ Roseville, California December 20, 2012 2 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, 2012. 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 $334,254 (net assets). Of this amount, $15,440 (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 $17,511 during the fiscal year excluding prior period adjustments. • As of June 30, 2012, the County's governmental funds reported combined ending fund balances of $100,378, a net increase of $1,183 in comparison with the prior fiscal year, excluding the previous period adjustments. Amounts available for spending include restricted, committed, assigned and unassigned fund balances; these totaled $99,724, or 99% of ending fund balance. Of this amount $83,185 is restricted by law or externally imposed requirements, and $809 is committed for specific purposes. At the end of the current fiscal year, the assigned and unassigned fund balances for the general fund was $17,456 or 14.7% of total general fund expenditures. The County's total long-term obligations as of June 30, 2012 increased by $1,831 over the prior period. The key factors in the increase were the addition of $347 in Claims and Judgments, reduction of $337 in Compensated Absences, reduction of $234 in long-term notes, and the addition of $2,920 in the OPEB obligation. 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 six 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 insurance and utilities. 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) Governmental Business-type Total Activities Activities Total Dollar Change % Change 2012 '~~11 2012 '~~11 2012 '~~11 '~~11 to 2012 2011 to 2012 Current and other assets $ 193,812 ~ I^~_~~, $ 19,518 ~ Is_~~~ $ 213,=,0 S ,IZ,h~~ $ (4,050) (1.9)% Capital assets 231,479 ,~s_~,61 18,888 I ~_ ~sn 250,367 '~,Zu~l (16,674) (6.7)% Total assets 425,291 ~-FZ I ~~ ~ 38 ~~ ~6 „~ 463,697 ~~-F ~, I (20,724) (4.5)% Current and otherliablilities 31,356 ~~~~~~' 1,,~~~ ~~l 32,661 ?~~_91n 1,751 5.4 Long-term liabilities 83,988 S7us^ 12,794 I~_~I, 96,782 llil~ul (4,619) (4.8)% Total liabilities 115,344 IIZ~~s 14,099 I~_7r„ 129,443 13,_~Il (2,868) (22)% Net assets: Invested in capital assets, net of related debt 226,632 ,~3_~,l 8,997 Z~~~ 235,629 ,~n_7r,~~ (15,137) (6.4)% Restricted net assets 83,185 ~, iK,;~ ~_7>; 83,185 >!s_~>, 26,333 31.7 Unrestricted net assets 1_~~ ~-F__'_'~ 15,310 I~~__'!s7 15,4F0 ~-F-F~', (29,052) (188.2)% Total net assets $ 309,947 S i_!s~~ $ 24,:~~7 S ,_'~!s> $ 334,2~~ S ~,_III $ (17,857) (53)% 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 4.7% 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) Governmental Business-type Total Acticiiies Acticiii~s Total Dollar Ckiange %Ckiange 2012 ^_~l l 2012 ^_Ol1 2012 ^_011 2011 Tp 2012 2011 Tp 2012 Revenues: Program revenues: Cktarges for services $ 38.~~ti S II_-'[ $ 6,626 S ,_~I~~ $ II_~~(:~I S IS2 ~o $ (3,332) (7.4)% Operating grants and conhibutions 2 ~8.~i3 _7-31R -- l u l ~ ;8_~i3 __-_.-_ 11,114 4.7 Capital grants and conhibutions 1. ~~~ I 10_ I~,~, - 13 °~~ I 10_ I~,~, 2,798 21.1 General revenues: Property taxes 46,50 J-_>-o -- - I~~,S(~~ J-_>-o (1,071) (23)% Sales taxes 3,810 --~~_ -- - 3,81 ~~ --~~_ (15) (0.4)% Other taxes and related revenues 1,0~ ~ " I _' -- - 1,0~ ~ " L' 80 7.8 Unreshicted grants and conhibutions 1--- l~ I ~,_-~ ~ -- - 17,74- I ~,_-~ ~ 994 5.6 Unrestricted investment income 1,7~~ 3,~:;~s3 ]"- __ 1-^V' 3.-R_ (1,333) (68.4)% Miscellaneous revenues 3,93 LSS~.~ - 3,93 LSS~.~ (951) (242)% Total revenues 36 Van - - 6,823 ~~~'~~?~~ 371,7x^ 31-~ 8,284 22 Program expenses: General government 30,061 -"_ I oR -- - 30,061 _'"_ I oR 893 3.0 Public protection 9. °4~ '~ I _ I ~~- -- - 93 ° I~~ ~~ I _ I ~~- 2,079 22 Public ways and facilities 37,08" - ~-~ a. -- - 37,Ob'~ - ~-~ a. 396 1.1 Health and sanitation 75,31 -- ~::~ I o -- - 75,3] - -- ~::~ I o 3,301 4.4 Public assistance 141,^~" I IS_22[l -- - 141-""" I IS2~0 (6,221) (4.4)% Education _-~01' _ ~_, -- - 3,26^' __ ,. 249 7.8 Culture and recreation services 58~I ~ ~0 -- - Sb' I ~ ~0 54 92 Interest on long-term debt ~_ 18" ? -G I -- - 2,4b'"' ~_-01 (212) (8.5)% Sanitation - - 5-~82 „'~~~ 5,2b'~ - (704) (133)% Total expenses 38.-"8~ 3R ~_ I IR s-~82 - 38" ~~~^ "_ I_~ I (165) (0.0)% Ckiange in net assets before transfers (I ^_051: i~~,_~-~~i 1.41 °2G (17,510) _.-_ - 8,449 (483)% Transfers ] ~ (15) - Ckiange in net assets (19,03n:~ _._.- ]-~'~~ -, .. (17,510) _.-_ - 8,449 (483)% Net assets at beg'nrnng ofyear .„L F4~ ~s l,s ~ti _~_ISS _I_~o~ 352,1]~~ _hl~:i~ 23,993) (6.8)% Prior period adjustment leek, L"uo 316 - 3h~:~ I_"oo Net assets, ending $ 309,947 S _o l~ $ 24,307 S ? log $ 33d,2Sd S x2.110 $ (17,856) (53)% 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 $19,036, primarily due to current year depreciation expense of the County's infrastructure (roads and bridges), which amounted to $24,347. • Business-Type Activities accounted for an increase in net assets of $1,526, primarily due to current year revenues exceeding expenses. Expenses and Program Revenues -Governmental Activities O Rev enues ®Exp ens es $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000, 000 $20,000, 000 $- ~~40 ~~~ti~~ ~~ ~~~ ~~~~o ~~~~ti° tio~~ C~~'~~ 4 0 ~~ ~~~ 4 ~~~~ 5 0~ 4~~~ti ~~ '~~'~~ ~~~~~ ~ ~~~~ 1 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, total fund balance less the nonspendable portion is a useful measure of the County's net resources available for spending at the end of the fiscal year. At June 30, 2012, the County's governmental funds reported combined ending fund balances of $100,378. The components of total fund balance are as follows: • Nonspendable fund balance - $655, are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of inventories and prepaid expenses. • Restricted fund balance - $83,185, consists of amounts with constraints put on their use by externally imposed creditors, grantors, contributions, laws, regulations or enabling legislation. • Committed fund balance - $809, are amounts for specific purposes determined by the Board of Supervisors, such as debt service of $721. • Assigned fund balance - $5,059 represents $3,500 set aside for emergency reserves and $1,559 as a reserve for contingencies. • Unassigned fund balance - $10,670, represents the residual classification for the County's General Fund. Approximately 99%, or $99,724, of the total fund balances is available to meet the County's current and future needs. With the approval of the Board of Supervisors, County management can earmark a portion of fund balance to a particular function, project or activity, and can also earmark it for purposes beyond the current year, within the constraints applied to the various categories of fund balance. With the exception of the nonspendable portion, fund balances are available for appropriation at any time. The general fund is the main operating fund of the County. The general fund's fund balance increased by $9,015 during the current fiscal year, excluding prior period adjustments. As a result of GASB 54 implementation, Funds categorized as Special Revenue were analyzed to determine they still qualified for that classification. Analysis determined fire fund, water fund and library fund no longer met that classification therefore were collapsed into general fund, which contributed to the increase in general fund balance. Negotiations with all bargaining units resulted in Butte County employees increased contribution towards their pension resulting in a shift of expenditures from the County to the employees which also contributed to increased fund balance. As a measure of the general fund's liquidity, it is useful to compare both total fund balance and spendable fund balance to total fund expenditures. Total fund balance equates to 31.3% of total fund expenditures, while spendable fund balance equates to 31.0% of total fund expenditures. Of the general fund spendable fund balance, $18,715 or 50.2% is restricted, and $809, or 2.2% is committed. The welfare fund has a total fund balance of $4,636. The entire amount, $4,636 is restricted. The overall fund balance increased by $3,251 due to the new complicated 2011 Realignment delaying payments from the State. The public health fund has a total fund balance of $12,254. The entire amount, $12,254 is restricted. The overall fund balance decreased by $839 due primarily due to Health Realignment Vehicle License Fees being received at $652,734 below base level funding. In addition, the department planned and budgeted to use restricted cash to help support one-time costs. The behavioral health fund has a total fund balance of $(1,726). The entire amount, $(1,726) is unassigned. The overall fund balance decreased by $1,569 mainly due to the State converting to new information systems specifically for implementing HIPAA compliance and data transfers. This conversion created a delay in current fiscal year payments. In addition, the new complicated 2011 Realignment Program delaying payments from the state also contributed to the decrease in fund balance. The road fund has a total fund balance of $15,879. Of this amount, $364 is nonspendable, and the balance of $15,515 is restricted. The overall fund balance decreased by $136 during the current fiscal year, due to decreased revenues from other local governmental projects. 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 2011 FY 2012 Change Revenue Sources Amount % of total Amount % of total Amount % of change Taxes $ 52,344 14.8% $ 51,337 14.1% $ (1,007) (1.9%) Licenses and permits 3,146 0.9% 3,120 0.9% (26) (0.8%) Fines, forfeitures, and penalties 3,303 0.9% 3,233 0.9% (70) (2.1%) Use of money and property 2,833 0.8% 1,571 0.4% (1,262) (44.5%) Intergovernmental 254,567 71.8% 269,779 74.2% 15,212 6.0% Charges for services 33,316 9.4% 30,672 8.4% (2,644) (7.9%) Other 4,886 1.4% 3,935 1.1% ~ (1 ~~ Total ~S ~T ~ ~T ~ o County of Butte General Fund Revenues For the Fiscal Year Ended June 30, 2012 Intergovernmental 74% Use of money and property 0% Fines, forfeitures, Tapes Other Charges for services Licenses and permits o 9% and penalties I % 14% 1 % 1% Significant changes for major revenue sources are explained below. • Taxes -Residential and Secured Business Values declined resulting in reduced Property Tax Revenue. • Use of Money and Property -Interest rates on investments and the value of investments continued to decrease in the current year. • Other -Decreased revenue under other is primarily due to decrease in other sales as a result of demand falling in this weak economy. 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 2011 FY 2012 Change Function Amount % of total Amount % of total Amount % of change General government $ 24,604 6.9% $ 29,192 8.1% $ 4,588 15.7% Public protection 90,860 25.4% 92,590 25.5% 1,730 1.9% Public ways and facilities 17,281 4.8% 18,434 5.1% 1,153 6.3% Health and sanitation 71,324 19.9% 74,749 20.6% 3,425 4.6% Public assistance 147,195 41.1% 140,937 38.9% (6,258) (4.4%) Education 2,857 0.8% 3,149 0.9% 292 9.3% Culture and recreation services 349 0.1% 363 0.1% 14 3.9% Debt service 3,799 1.1% 3,153 0.9% (646) (20.5%) Total $ 358,269 100% $ 362,567 100% $ 4,298 1.2% Culture and recreation Debt service services 1% General government Education ~% 8% 1% Public protection 25% Public assistance 39% Public ways and Health and sanitation facilities 21% 5% Significant changes for major functions are explained below. • General Government -The increase in this function is mainly due to increased expenditures for major maintenance in order to become ADA compliant. • Education -The increase in this function is mainly due to increased regulations requiring additional training. • Debt Service -The decrease in this function is mainly due to interest rates dropping very low. 10 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 $24,307. Of this amount, $8,797 is invested in capital assets, net of related debt, and the balance of $15,510 is unreserved. Overall net assets increased by $1,842 due to an increase in capital assets and revenues exceeding expenses. V. GENERAL FUND BUDGETARY HIGHLIGHTS Differences between the original budget and the final amended budget for revenues were an increase of $23,527. This increase was due to the County anticipating more aid from other governments than was originally anticipated. During the fiscal year, actual revenues were less than budgetary estimates by $24,770. The primary reason for the decrease was the decreased revenue received by aid from other governments. 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, 2012, amounts to $250,367 (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 6.6%. The decrease resulted from infrastructure depreciation exceeding infrastructure assets acquired by $16,674. Additional information on the County's capital assets can be found in the Notes to the Financial Statements section of this report on page 48, note 5 -Capital Assets. Key events affecting capital assets during the fiscal year included the following: • Construction in progress capital assets being transferred to 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) Land Structures & improvements Equipment Infrastructure Construction in progress Total Governmental activities Business-type activities 2011 2012 2011 2012 $ 2,281 ~ ?.641 $ 431 ~ 4 ~ I $ 2,712 ~ 3.072 42,539 42.84 13,760 17. ~ 14 56,299 6U. I ~9 11,844 12.066 869 6>> 12,713 12.719 189,674 170. 13 ~ -- -- 189,674 170. 13 2,323 x.792 3,320 490 5,643 4.282 $ 248,661 $ 2 ~ 1.479 $ 18,380 $ 18.888 $ 267,041 $ 2>0_ ,67 Total 2011 2012 11 B. Long-Term Obligations At June 30, 2012, the County had total long-term obligations outstanding of $103,232 consisting of $12,129 in Certificates of Participation, capital lease obligations of $791, bonds payable of $49,895, loan payable of $200, and notes payable of $1,818. Additional long-term liabilities include compensated leave payable of $14,057, actuarial claims liability of $5,926 for general insurance and worker's compensation self insurance, landfill closure/post closure care liability of $3,431, and OPEB obligation of $14,985. Additional information on the County's long-term liabilities can be found in the Notes to the Financial Statements section of this report on page 50, note 7 -Long-Term Obligations. VII. Fiscal Outlook The County adopted its fiscal year 2012-2013 Final Budget in the total amount of $448,308, with a General Fund overall emergency reserve level of $4,500. This emergency reserve consists of General Reserve for $3,500 and an Appropriation for Contingency of $1,000. 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 including the new public safety and health and human services realignment. Declining revenues, 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. Conversely, real estate values are improving in certain areas of the County, resulting in a 2% property tax increase allowed under Proposition 13. Also, the County has negotiated agreements with southern California water districts to lease our excess water that will produce up to $1.2 million annually for the next two years. 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: Auditor-Controller 25 County Center Drive Suite 120 Oroville, CA 95965 The County's Comprehensive Annual Financial Report can also be found at www.buttecoun .net. 12 o~ ~ o o ~1~~ o 0 0 o i~ -~_ _ - _~- - - _ o o -_---~- _ =~~. o ~(~ ~~ Basic Financial Statements- Government-wide Financial Statements urr COUNTY OF BUTTE, CALIFORNIA STATEMENT OF NET ASSETS JUNE 30, 2012 Primary Government Governmental Business-type Activities Activities Total ASSETS Cash and investments $ 110,157,254 $ 16,404,021 $ 126,561,275 Cash and investments with fiscal agent 1,639,220 2,219,993 3,859,213 Imprest cash 88,470 2,800 91,270 Interest receivable 394,790 58,548 453,338 Accounts receivable 5,341,411 578,373 5,919,784 Due from other governments 24,261,599 - 24,261,599 Prepaid items 176,664 - 176,664 Deposits from others 177,796 22,188 199,984 Inventories 477,850 - 477,850 Loans receivable 2,731,732 - 2,731,732 Net pension asset 48,246,989 - 48,246,989 Deferred debt issuance costs 118,437 231,053 349,490 Capital assets, net Non-depreciable 6,433,013 920,684 7,353,697 Depreciable assets, net 225,046,024 17,967,733 243,013,757 Total Assets 425,291,249 38,405,393 463,696,642 LIABILITIES Liabilities Due to other funds - 13,232 13,232 Accounts payable 9,979,571 152,369 10,131,940 Salaries and benefits payable 3,029,791 26,527 3,056,318 Deposits payable 13,115 - 13,115 Unearned revenue 12,782,302 - 12,782,302 Accrued interest 12,788 200,650 213,438 Long term liabilities: Due within one year 5,538,307 911,545 6,449,852 Due in more than one year 83,988,230 12,794,350 96,782,580 Total Liabilities 115,344,104 14,098,673 129,442,777 NET ASSETS Invested in capital assets, net of related debt 226,632,409 8,996,514 235,628,923 Restricted for: General restrictions 69,938,282 - 69,938,282 County Service Areas 6,953,538 - 6,953,538 Debt service 6,293,520 - 6,293,520 Unrestricted 129,396 15,310,206 15,439,602 Total Net Assets $ 309,947,145 $ 24,306,720 $ 334,253,865 The accompanying notes are an integral part of these financial statements. 13 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Functions/Programs Expenses Primary government: Governmental activities: General government $ 30,060,660 Public safety 93,246,404 Public ways and facilities 37,081,727 Health and sanitation 75,317,142 Public assistance 141,998,777 Education 3,208,699 Culture and recreation services 583,937 Interest on long-term debt 2,488,759 Total Governmental Activities 383,986,105 Business-type activities: Sanitation 5,281,891 Total business-type activities 5,281,891 Total Primary Government $ 389,267,996 General revenues: Program Revenues Operating Charges for Grants and Services Contributions $ 19,859,373 9,364,760 2,286,810 5, 607,73 8 1,012,741 146,391 3 8,277, 813 6,626,025 6,626,025 $ 44,903,838 Taxes: Property taxes Sales and use taxes Other taxes and related revenues 24,932, 570 37,762,157 2,561,682 44,43 5, 520 128,851,859 79,511 23 8, 623,299 $ 238,623,299 Grants and contributions not restricted to specific programs Unrestricted interest and investment earnings Other revenues Transfers Total general revenues Change in net assets Net assets -beginning, as restated Net assets -ending The accompanying notes are an integral part of these financial statements. 14 Program Net (Expense) Revenue and Revenues Changes in Net Assets Capital Grants and Governmental Business-Type Contributions Activities Activities Total $ - $ 14,731,283 $ - $ 14,731,283 - (46,119,487) - (46,119,487) 13,263,837 (18,969,398) - (18,969,398) - (25,273, 884) - (25,273, 884) - (12,134,177) - (12,134,177) - (3,062,308) - (3,062,308) - (504,426) - (504,426) - (2,488,759) - (2,488,759) 13,263,837 (93,821,156) - (93,821,156) $ 13,263,837 (93,821,15 46,504,613 - 3,809,695 - 1,022,342 - 17,747,085 - 1,751,760 196,221 3,934,721 - 14,788 (14,788) 74,785,004 181,433 46,504,613 3,809,695 1,022,342 17,747,085 1,947,981 3,934,721 74,966,437 ~19,o36,1s2~ l,s2s,s67 ~17,s1o,s8s~ 328,983,297 22,781,153 351,764,450 $ 309,947,145 $ 24,306,720 $ 334,253,865 1,344,134 1,344,134 1,344,134 1,344,134 1,344,134 (92,477,022) The accompanying notes are an integral part of these financial statements. 15 o~ ~ ~ o a ~ll~ o a a _ _o o -~ „~ : - __~ - ~ ?-~` ~(~ ~~ (This Page Intentionally Left Blank) 16 urr o~ ~ ~ o 1~ ~, a o a a _ _o o -~ „~ : - __~ - ~ ?-~` ~(~ ~~ Basic Financial Statements- Fund Financial Statements urr COUNTY OF BUTTE, CALIFORNIA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 Public Behavioral Other Total General Welfare Health Health Road Governmental Governmental Fund Fund Fund Fund Fund Funds Funds ASSETS Cash and investments $ 32,770,262 $ 4,011,478 $ 6,704,832 $ 3,924,430 $ 14,388,486 $ 31,674,238 $ 93,473,726 Restricted Assets: Cash with fiscal agent 751,146 - - - - 888,074 1,639,220 Imprest cash 84,770 - 650 1,000 50 2,000 88,470 Due from other funds 2,025,812 115,923 4,125,032 - 8,132 - 6,274,899 Interest receivable 147,038 6,515 35,173 (2,455) 43,992 102,474 332,737 Accounts receivable 1,214,432 758,546 1,180,881 - 2,172,366 10,072 5,336,297 Due from other governments 6,075,542 9,718,485 924,611 6,227,556 913,884 386,651 24,246,729 Prepaid items 176,664 - - - - - 176,664 Deposits from others 2,796 - - - - - 2,796 Inventory 113,819 - - - 364,031 - 477,850 Loans receivable - - - - - 2,731,732 2,731,732 Total assets $ 43,362,281 $ 14,610,947 $ 12,971,179 $ 10,150,531 $ 17,890,941 $ 35,795,241 $ 134,781,120 LIABILITIES Liabilities: Due to other funds $ - $ 1,988,589 $ 1,467 $ 4,238,686 $ 35,602 $ 3,650 $ 6,267,994 Accounts payable 3,278,932 1,124,056 357,171 2,502,092 1,821,998 493,546 9,577,795 Salaries and benefits payable 1,373,791 716,662 217,917 471,512 134,306 115,603 3,029,791 Deposits payable 13,115 - - - - - 13,115 Deferred revenue 1,426,612 6,145,937 141,046 4,664,281 20,414 3,115,744 15,514,034 Total liabilities 6,092,450 9,975,244 717,601 11,876,571 2,012,320 3,728,543 34,402,729 FUND BALANCES Nonspendable 290,483 - - - 364,031 - 654,514 Restricted 18,714,771 4,635,703 12,253,578 - 15,514,590 32,066,698 83,185,340 Committed 808,712 - - - - - 808,712 Assigned 5,059,485 - - - - - 5,059,485 Unassigned 12,396,380 - - (1,726,040) - - 10,670,340 Total fund balances 37,269,831 4,635,703 12,253,578 (1,726,040) 15,878,621 32,066,698 100,378,391 Total liabilities and fund balances $ 43,362,281 $ 14,610,947 $ 12,971,179 $ 10,150,531 $ 17,890,941 $ 35,795,241 $ 134,781,120 The accompanying notes are an integral part of these financial statements. 17 COUNTY OF BUTTE, CALIFORNIA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Amounts reported for governmental activities in the statement of net assets are different because: Fund balances-total governmental funds $ 100,378,391 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. These assets consist of: Land $ 2,640,691 Construction in progress 3,792,322 Infrastructure 590,523,872 Structures and improvements 66,329,578 Equipment 54,807,379 Less: accumulated depreciation (486,645,341) Total capital assets 231,448,501 In governmental funds, other long-term assets are not available to pay for current-period expenditures: Net pension asset 48,246,989 Loans receivable 2,731,732 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. 118,437 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. (12,788) 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. 10,636,420 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. Balances as of June 30, 2012 are: Certificates of participation (2,237,333) Bonds payable (49,895,000) Notes payable (1,818,663) Capital leases (790,632) Other postemployment benefits (13,873,612) Compensated absences (14,985,297) Total long-term liabilities (83,600,537) Net assets of governmental activities $ 309,947,145 The accompanying notes are an integral part of these financial statements. 18 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 REVENUES Taxes Licenses and permits Fines, forfeitures, 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): Sales of capital assets Transfers in Transfers out Issuance of debt Total other financing sources (uses) Net change in fund balances Fund balances, beginning Prior period adjustments Fund balances -beginning, restated Public Behavioral Other Total General Welfare Health Health Road Governmental Governmental Fund Fund Fund Fund Fund Funds Funds $ 50,515,660 $ - $ - $ - $ - $ 820,990 $ 51,336,650 2,921,465 - 120,409 - 78,519 - 3,120,393 2,478,604 - 327,287 98,817 - 328,335 3,233,042 1,109,616 (32,298) 146,395 (172,665) 197,096 322,845 1,570,990 43,707,200 135,866,344 17,419,254 47,093,533 13,263,837 12,429,068 269,779,236 18,554,491 895,613 2,877,236 2,183,989 2,208,291 3,952,617 30,672,237 2,811,391 887,860 14,828 70,884 54,572 95,186 3,934,721 122,098,427 137,617,519 20,905,409 49,274,558 15,802,315 17,949,041 363,647,269 25,859,007 - 88,470,574 1,037,070 388,239 132,980,692 3,149,115 - 265,977 - 22,354,854 50,538,485 - 3,333,380 29,192,387 - 3,082,688 92,590,332 17,096,875 1,337,119 18,433,994 - 1,855,126 74,748,465 - 7,567,659 140,936,590 - 171 3,149,286 - 97,088 363,065 392,696 - - - - 373,261 765,957 410,694 - - - - 1,976,477 2,387,171 118,936,302 134,017,762 22,354,854 50,538,485 17,096,875 19,622,969 362,567,247 3,162,125 3,599,757 (1,449,445) (1,263,927) (1,294,560) (1,673,928) 1,080,022 137,913 - - - 27,446 4,005 169,364 2,456,745 - 724,304 285,189 1,211,569 3,136,967 7,814,774 (2,869,715) (349,113) (113,572) (242,456) (80,636) (3,836,727) (7,492,219) 32,150 - - - - 240,765 272,915 (242,907) (349,113) 610,732 42,733 1,158,379 (454,990) 764,834 2,919,218 3,250,644 (838,713) (1,221,194) (136,181) (2,128,918) 1,844,856 34,350,613 1,385,059 13,092,291 157,130 16,014,802 34,195,616 99,195,511 - - - (661,976) - - (661,976) 34,350,613 1,385,059 13,092,291 (504,846) 16,014,802 34,195,616 98,533,535 Fund balances, ending $ 37,269,831 $ 4,635,703 $ 12,253,578 $ (1,726,040) $ 15,878,621 $ 32,066,698 $ 100,378,391 The accompanying notes are an integral part of these financial statements. 19 COUNTY OF BUTTE, CALIFORNIA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENTS OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2012 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances, which measure only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Assets of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis. Net change to fund balances-total governmental funds Amounts reported for governmental activities in the statements of activities are different because: Governmental funds reported 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. Capital outlay expenditures are therefore added back to fund balances Depreciation expense not reported in governmental funds Other capital asset adjustments Governmental funds 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 Repayment oflong-term receivables is treated as revenue in governmental funds, but the repayment reduces long-term receivables in the Statement of Net Assets. Issuance oflong-term receivables is treated as expenditures in the governmental funds, but the issuance increases long-term receibables in the Statement of Net Assets. Change in loans receivable 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 expenditure in the governmental funds, but in the statement of net assets the repayment reduces long-term liabilities. Principal payments Proceeds from issuance of debt Amortization expense of costs of issuance not reported in governmental funds 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 Other postemployment benefits Compensated absences 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 of internal service funds is reported with governmental activities. Change in net assets of governmental activities $ 1,844,856 $ 6,970,132 (24,341,024) 169,364 (17,201,528) 765,957 (272,915) (1,356,101) 944,177 (101,751) 391,291 163 (2,920,263) 336,862 (2,583,238) (1,075,609) $ (19,036,152) The accompanying notes are an integral part of these financial statements. 20 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2012 Governmental Activities Internal Service Landfill Total Funds ASSETS Current assets: Cash and investments $ 16,404,021 $ 16,404,021 $ 16,683,528 Cash and investments with fiscal agent 2,219,993 2,219,993 - Imprest cash 2,800 2,800 - Due from other funds - - 7,965 Interest receivable 58,548 58,548 62,053 Accounts receivable 578,373 578,373 5,114 Deposits with others 22,188 22,188 175,000 Total current assets 19,285,923 19,285,923 16,933,660 Noncurrent assets Deferred debt issuance costs 231,053 231,053 - Capital assets: Nondepreciable: Land 430,939 430,939 - Construction in progress 489,745 489,745 - Depreciable: Structures 18,486,894 18,486,894 - Equipment 4,300,520 4,300,520 45,461 Less: Accumulated depreciation (4,819,681) (4,819,681) (14,924) Total capital assets, net 18,888,417 18,888,417 30,537 Total noncurrent assets 19,119,470 19,119,470 30,537 Total assets 38,405,393 38,405,393 16,964,197 LIABILITIES Current liabilities Due to other funds 13,232 13,232 - Interestpayable 200,650 200,650 - Accounts payable 152,369 152,369 401,777 Accrued salaries and benefits 26,527 26,527 - Compensated absences, current portion 38,000 38,000 - Claims and judgments, current portion - - 3,300,000 COP payable, current portion 810,000 810,000 - Loans payable, current portion 50,000 50,000 - Total current liabilities 1,290,778 1,290,778 3,701,777 Noncurrent liabilities: Compensated absences, less current portion 145,453 145,453 - Loans payable, less current portion 150,000 150,000 - COP payable, less current portion 9,081,903 9,081,903 - Claims and judgments, less current portion - - 2,626,000 Landfill closure/post-closure care costs 3,430,539 3,430,539 - Total noncurrent liabilities 12,807,895 12,807,895 2,626,000 Total liabilities 14,098,673 14,098,673 6,327,777 NET ASSETS Invested in capital assets, net of related debt 8,996,514 8,996,514 30,537 Unrestricted 15,310,206 15,310,206 10,605,883 Total net assets $ 24,306,720 $ 24,306,720 $ 10,636,420 The accompanying notes are an integral part of these financial statements. 21 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Governmental Activities Internal Service Landfill Total Funds OPERATING REVENUES Charges for services Landfill fees Other revenue Total operating revenues OPERATING EXPENSES Salaries and employee benefits Service and supplies Claims and judgments Operation and maintenance Depreciation Other expenses Landfill closure/post-closure care cost Total operating expenses Operating income (loss) $ - $ - $ 6,331,444 6,509,100 6,509,100 - 116,925 116,925 768,612 6,626,025 6,626,025 7,100,056 1,389,190 1,389,190 384,785 - - 2,836,817 - - 4,227,661 2,684,109 2,684,109 - 580,832 580,832 6,425 - - 592,980 226,460 226,460 - 4,880,591 4,880,591 8,048,668 1,745,434 1,745,434 (948,612) NONOPERATING REVENUES (EXPENSES) Interest income 196,221 196,221 180,770 Interest expense (401,300) (401,300) - Total nonoperating revenues (expenses) (205,079) (205,079) 180,770 NET INCOME BEFORE TRANSFERS 1,540,355 1,540,355 (767,842) Transfers in Transfers out Change in net assets Net assets, beginning of year Prior period adjustments Net assets -beginning, restated Net assets, end of year - - 11,625 (14,788) (14,788) (319,392) 1,525,567 1,525,567 (1,075,609) 22,465,196 22,465,196 11,712,029 315,957 315,957 - 22,781,153 22,781,153 11,712,029 $ 24,306,720 $ 24,306,720 $ 10,636,420 The accompanying notes are an integral part of these financial statements. 22 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Governmental Business-type Activities Activities Internal Service Landfill Total Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 6,549,846 $ 6,549,846 $ 7,167,283 Cash paid to suppliers for goods and services (2,409,958) (2,409,958) (7,220,162) Cash paid to employees for services (1,414,420) (1,414,420) (384,860) Internal activities -payments from (to) other funds 13,232 13,232 - Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Principal repayment on loans payable Transfers in Transfers out 2,738,700 2,738,700 (437,739) (50,000) (50,000) - - - 11,625 (14,788) (14,788) (319,392) 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 (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 and investments with fiscal agent Imprest cash Total cash and investments (64,788) (64,788) (307,767) (1,089,235) (1,089,235) (25,879) (793,545) (793,545) - (395,870) (395,870) - (2,278,650) (2,278,650) (25,879.00) 216,383 216,383 204,293 216,383 216,383 204,293 611,645 611,645 (567,092) 18,015,169 18,015,169 17,250,620 $ 18,626,814 $ 18,626,814 $ 16,683,528 $ 16,404,021 $ 16,404,021 $ 16,683,528 2,219,993 2,219,993 - 2,800 2,800 - $ 18,626,814 $ 18,626,814 $ 16,683,528 (continued) The accompanying notes are an integral part of these financial statements. 23 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF CASH FLOWS (continued) PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Business-type Activities Landfill Total Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustment 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 external parties Deposits Increase (decrease)in: Accounts payable Due to other funds Accrued salaries and benefits Compensated absences Landfill closure/post-closure cost Claims and judgments Governmental Activities Internal Service Funds $ 1,745,434 $ 1,745,434 $ (948,612) 580,832 (76,179) (22,188) 296,339 13,232 (36,325) 11,095 226,460 Net cash provided (used) by operating activities 580,832 (76,179) (22,188) 296,339 13,232 (36,325) 11,095 226,460 6,424 117,227 (50,000) 90,297 (75) 347,000 $ 2,738,700 $ 2,738,700 $ (437,739) The accompanying notes are an integral part of these financial statements. 24 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 Investment Trust ASSETS Cash and investments $ 196,672,079 Imprest cash 18,496 Interest receivable 696,116 Property tax receivable - Total assets 197,386,691 LIABILITIES Due to other funds - Agency funds held for others - Total liabilities - NET ASSETS Held in trust for pool participants 197,386,691 Total net assets $ 197,386,691 Agency Funds $ 25,662,072 49,761 15,192,871 40,904,704 1,638 40,903,066 $ 40,904,704 The accompanying notes are an integral part of these financial statements. 25 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS INVESTMENT TRUST FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Additions: Contributions to pooled investments Interest and investment income Total additions Deductions: Distributions from investment pool Total deductions Net increase Net assets, beginning Net assets, ending $ 1,232,520,314 3,307,610 1,235,827,924 (1,272,997,747) (1,272,997,747) (37,169,823) 234,556,514 $ 197,386,691 The accompanying notes are an integral part of these financial statements. 26 U °~ I 0 °-~---~ p ~ ~^„ ~ -: _~ ~ T~- ~ ~U ~~ 0 ~o 0 o~ 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, 2012 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, 2012 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 #33 Oro-Wyandotte CSA #62 Rancho De Thunder CSA #75 North Park CSA #85 Carriage Manor CSA #103 Morris Subdivision CSA #12 Stirling City Lighting CSA #16 West Chico CSA #27 Richvale CSA #36 Glen Haven CSA #67 Vista Del Cerro CSA #78 Woodside CSA #92 Rosewood Subdivision CSA #161 Mulberry Street 27 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 #79 Big Chico Creek Estates 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 #120 Oak Way Park CSA #125 Willow Bend Subdivision CSA #128 Wildflower Estates Subdivision CSA #129 Orchard House Estates CSA #133 Ceres Avenue Subdivision CSA #154 Forebay Vista CSA #177 Blossom Estates CSA #181 Palm Crest Village Subdivision CSA - Drainage CSA #4 Sierra Del Oro CSA #23 Pleasant Valley CSA #24 Chico -Mud Creek CSA #25 Shasta Union CSA #87 Keefer Road/Rock Creek CSA #95 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, 2012 1. Summary of Significant Accounting Policies (continued) A. The Financial Reporting Entity (continued) CSA -Other CSA #26 Thermalito Sewer and Drainage CSA #31 Biggs (Schohr's) Swimming Pool -Recreation CSA #34 Gridley Swimming Pool -Recreation CSA #37 Gridley -Biggs Ambulance CSA #90 Southgate Acres Drainage and Fire Protection CSA #94 Sycamore Valley Sewer, Lighting, and Drainage CSA # 114 County of Butte -Nitrate Study Plan CSA #131 Walnut Manor -Lighting, Drainage, and Landscape CSA #135 Keefer Creek Estates -Lighting, Drainage, and Sewer 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 # 163 Thorntee Industrial Park -Lighting, Drainage, and Fire CSA # 164 County of Butte -Animal Control CSA # 165 Justin Manor Subdivision -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 #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 #176 Pheasant Landing Estates #3 -Lighting, Drainage, and Fire CSA #178 Twin Palms Subdivision -Lighting, Drainage, and Fire CSA # 179 Chambers & Speedway Subdivision -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 Reporting Entity 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, 2012 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, 2012 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 and operating expenses, 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 and nonoperating expenses, 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, 2012 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, 2012 1. Summary of Significant 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, 2012 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, 2012 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, 2012 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 90.6% 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, 2012 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 reported as a nonspendable component of fund balance since 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 $25,000 for machinery, equipment and computer software; more than $125,000 for infrastructure, buildings and land improvements; 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, 2012 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 Machinery & Equipment 5 to 20 years Vehicles 5 to 15 years I. 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. 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, 2012 1. Summary of Significant Accounting Policies (continued) L. 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. M. 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. N. Fund Equity In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent. • Nonspendable Fund Balance -amounts that are not in a spendable form or are legally or contractually required to be maintained intact (such as inventories or prepaid amounts). • Restricted Fund Balance -amounts that can be spent only for specific purposes stipulated by external parties (such as creditors, grant providers or contributors) or by law. 38 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 1. Summary of Significant Accounting Policies (continued) N. Fund Equity (continued) • Committed Fund Balance -amounts that can be used only for the specific purpose determined by the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action that imposed the constraint originally. The formal action must occur prior to the end of the reporting period. The amount which will be subject to the constraint maybe determined in the subsequent period. • Assigned Fund Balance -amounts intended to be used by the government entity for specific purposes that are neither restricted nor committed. Intent can be expressed by the Board of Supervisors or by an official or body to which the Board delegates the authority. Assigned fund balance can be used to eliminate a projected budgetary deficit in the subsequent year's budget. Unassigned Fund Balance -the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically mailable for any purpose. Fund Balance Policy -based on the County's policy regarding the fund balance classification that was approved by the Board of Supervisors, when both restricted and unrestricted funds are mailable for expenditure, restricted funds should be spent first unless legal requirements disallow it. When expenditures are incurred for purposes for which amounts in any unrestricted fund balance classification could be used, committed funds are to be spent first, assigned funds second, and unassigned funds last. Only the Board of Supervisors has the authority to assign unassigned fund balance amounts where the County's intent is for those amounts to be used for specific purposes. 39 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 2. Cash and Investments Cash and investments as of June 30, 2012 are classified in the accompanying financial statements as follows: Statement of net assets: Primary government: Cash and investments $ 126,561,275 Cash and investments with fiscal agents 3,859,213 Imprest cash 91,270 Fiduciary funds: Cash and investments 222,334,151 Imprest cash 18,496 Total cash and investments 352.864.405 Cash and investments as of June 30, 2012 consist of the following: Cash on hand $ 169,547 Deposits with financial institutions 15,834,604 Investments 352,272,839 Outstanding warrants (15,412,585) Total cash and investments 352.864.405 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. 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 40 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 2. Cash and Investments (continued) 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 Butte County Treasurer's Pooled Portfolio None None None 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: 41 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 2. Cash and Investments (continued) Disclosures Relating to Interest Rate Risk (continued) Remaining Maturity Investment Fair Less than One to Two to Three to Four to Type Value One year Two years Three years Four years Five years With Treasurer: FAMCA FFCB FHLB FHLMC FNMA TVA NEGOTIABLE CD CAL TRUST LAIF CORPORATE NOTES Money Market Funds Total with Treasurer With fiscal agents: Money Market Funds FHLB FNMA LAIF Total with fiscal agent Total investments $ 21,809,261 $ - $ - $ 10,270,773 $ 3,489,109 $ 8,049,379 66,068,190 7,795,351 3,122,499 -- 5,004,330 50,146,010 96,522,388 24,853,773 15,679,286 16,720,451 15,408,700 23,860,178 35,073,554 2,012,334 -- 4,980,755 -- 28,080,465 35,066,035 5,000,000 -- -- 15,030,665 15,035,370 11,109,975 -- 5,244,175 -- -- 5,865,800 3,000,000 -- 750,000 1,250,000 500,000 500,000 3,973 3,973 -- -- -- -- 44,410,651 44,410,651 -- -- -- -- 5,170,790 5,170,790 -- -- -- -- 30,208,807 30,208,807 -- -- -- -- 348,443,624 119,455,679 24,795,960 33,221,979 39,432,804 131,537,202 2,225,624 2,225,624 -- -- -- -- 401,359 -- 401,359 -- -- -- 1,200,612 -- -- 1,200,612 -- -- 1,620 1,620 -- -- -- -- 3,829,215 2,227,244 401,359 1,200,612 -- -- $ 352,272,839 $ 121,682,923 $ 25,197,319 $ 34,422,591 $ 39,432,804 $ 131,537,202 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. 42 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 2. Cash and Investments (continued) Disclosures Relating to Credit Risk (continued) Minimum Exempt Rating as of Fiscal Year End Investment Fair Legal From Moody's S & P Moody's Not Type Value Rating Disclosure AAA Aa A1/P1 Rated FAMCA $ 21,809,261 N/A $ -- $ -- $ -- $ 21,809,261 FFCB 66,068,190 N/A 66,068,190 -- -- -- FHLB 96,522,388 N/A 96,522,388 -- -- -- FHLMC 35,073,554 N/A 35,073,554 -- -- -- FNMA 35,066,035 N/A 35,066,035 -- -- -- TVA 11,109,975 N/A 11,109,975 -- -- -- NEGOTIABLE CD 3,000,000 N/A -- -- -- 3,000,000 CAL TRUST 3,973 N/A -- 3,973 -- -- LAIF 44,410,650 N/A -- -- -- 44,410,650 CORPORATE NOTES 5,170,790 N/A -- -- 5,170,790 -- Money Market Funds 71,786 A 71,786 -- -- -- BANK MMF 30,137,022 N/A -- -- -- 30,137,022 Held by bond trustee: Money Market 2,225,624 A 2,225,624 -- -- -- FHLB 401,359 N/A 401,359 -- -- -- FNMA 1,200,612 N/A 1,200,612 -- -- -- LAIF 1,620 N/A -- -- -- 1,620 Total ~ 352,272,839 ~ -- ~ 247,739,523 ~ 3,973 X5,170,790 ~ 99,358,553 Concentration of Credit Risk 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 Tvpe Reported Amount 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 Federal Agricultural Mortgage Corp. Federal agency securities $ 96,523,335 66,068,190 35,066,035 35,073,554 21,809,261 43 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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. It is our practice to disallow first trust deed mortgage notes as collateral for the County's secured 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. 44 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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, 2012: Statement of Net Assets Net Assets held for pool participants 348.895.427 Equity of internal pool participants $ 152,223,347 Equity of external pool participants (voluntary and involuntary) 196,672,079 Total Equity 348.895.427 Statement of Changes in Net Assets Net Assets held for pool participants at July 1, 2011 $ 388,400,260 Net change in investments by pool participants (39,504,833 Net Assets held for pool participants at June 30, 2012 348.895.427 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 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 Unavailable $ -- 2,731,732 $ 2,731,732 Unearned $ 1,426,612 6,145,937 141,046 4,664,281 20,414 384,012 $ 12,782,302 Management believes all of its receivables are collectible. 45 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 4. Interfund Transactions Interfund Receivables/Payables The composition of Interfund balances as of June 30, 2012 are as follows: Balances due to/from other funds: Receivable Fund Payable Fund Amount General Fund Welfare Fund 1,988,589 Road Fund 28,657 Nonmajor Governmental Funds 2,848 Landfill Fund 4,080 Fiduciary Funds 1,638 Welfare Fund Public Health Fund Behavioral Health Fund Nonmajor Governmental Funds Public Health Fund Road Fund Internal Service Funds Behavioral Health Fund Landfill Fund Road Fund Landfill Fund Total 1,467 113,654 802 115,923 4,125,032 4,125,032 8,132 8,132 6,945 1,020 7,965 6,282,864 These Interfund balances result from the time lag between the dates that (1) Interfund goods and services are provided or reimbursable expenditures occur, and (2) payments between funds are made. 46 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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: Transfers From Transfers To Amount Reason General Fund Public Health Fund $ 724,304 Transfer for county match Behavioral Health Fund 285,189 Transfer for county match Nonmajor Governmental Funds 123,431 Transfer for debt service Nonmajor Governmental Funds 826,657 Transfer for capital projects Nonmajor Governmental Funds 910,134 Transfer for debt service - POB 2,869,715 Welfare Fund Nonmajor Governmental Funds 349,113 Transfer for debt service - POB Public Health Fund Nonmajor Governmental Funds 113,572 Transfer for debt service - POB Behavioral Health Fund Nonmajor Governmental Funds 17,730 Transfer for capital projects Nonmajor Governmental Funds 224,726 Transfer for debt service - POB 242,456 Road Fund Nonmajor Governmental Funds 10,245 Transfer for Worker's Comp Ins. Nonmajor Governmental Funds 70,391 Transfer for debt service - POB 80,636 Landfill Nonmajor Governmental Funds 1,380 Transfer for Worker's Comp Ins. Nonmajor Governmental Funds 13,408 Transfer for debt service - POB 14,788 Nonmajor Governmental Funds General Fund 4,966 Transfer for road operating subsidy - TDA General Fund 59,476 Transfer for road operating subsidy General Fund 168,525 Transfers for CDBG program grants General Fund 2,223,778 Transfers to close Fire, Water, Library Road Fund 1,211,569 Transfers of Transit funds Nonmajor Governmental Funds 108,823 Transfer for debt service - POB Nonmajor Governmental Funds 59,590 Transfer for debt service - POB 3,836,727 Internal Service Funds Nonmajor Governmental Funds 312,968 Transfer for debt service Nonmajor Governmental Funds 711 Transfer for equipment depreciation Nonmajor Governmental Funds 5,713 Transfer for equipment depreciation 319,3 92 Total $ 7,826,399 47 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 5. Capital Assets Capital asset activity for the fiscal year ended June 30, 2012 was as follows: Restated Transfers Balance (1) and Balance July 1, 2011 Additions Retirements Adjustments June 30, 2012 Governmental Activities Capital assets, not being depreciated: Land $ 2,281,119 $ 359,572 $ -- $ -- $ 2,640,691 Construction in progress 2,323,172 3,287,596 -- (1,818,446) 3,792,322 Total capital assets, not being depreciated 4,604,291 3,647,168 -- (1,818,446) 6,433,013 Capital assets, being depreciated: Infrastructure 590,523,872 -- -- -- 590,523,872 Structures and improvements 64,590,664 -- -- 1,738,914 66,329,578 Equipment 52,624,854 3,428,400 (1,279,946) 79,532 54,852,840 Total capital assets, being depreciated 707,739,390 3,428,400 (1,279,946) 1,818,446 711,706,290 Less: accumulated depreciation for: Infrastructure (400,849,769) (19,538,956) -- -- (420,388,725) Structures and improvements (22,051,661) (1,409,509) -- (23,842) (23,485,012) Equipment (40,781,141) (3,398,984) 1,392,213 1,383 (42,786,529) Total accumulated depreciation (463,682,571) (24,347,449) 1,392,213 (22,459) (486,660,266) Total capital assets, being depreciated, net 244,056,819 (20,919,049) 112,267 1,795,987 225,046,024 Governmental activities capital assets, net $ 248,661,110 $ (17,271,881) $ 112,267 $ (22,459) $ 231,479,037 Business-Type Activities: Capital assets, not being depreciated: Land $ 430,940 $ -- $ -- $ -- $ 430,940 Construction in progress 3,355,522 638,745 -- (3,504,523) 489,744 Total capital assets, not being depreciated 3,786,462 638,745 -- (3,504,523) 920,684 Capital assets, being depreciated: Structures and improvements 14,885,724 -- -- 3,601,170 18,486,894 Equipment 4,262,634 37,886 -- -- 4,300,520 Total capital assets, being depreciated 19,148,358 37,886 -- 3,601,170 22,787,414 Less: accumulated depreciation for: Structures and improvements (844,858) (328,353) -- -- (1,173,211) Equipment (3,393,991) (252,479) -- -- (3,646,470) Total accumulated depreciation (4,238,849) (580,832) -- -- (4,819,681) Total capital assets, being depreciated, net 14,909,509 (542,946) -- 3,601,170 17,967,733 Business-type activities capital assets, net $ 18,695,971 $ 95,799 $ -- $ 96,647 $ 18,888,417 (1) The beginning balance of Business-Type Activities was restated as explained in Note 14. 48 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 1,269,663 2,561,656 19,545,833 479,865 153,392 95,707 234,908 Business-Type Activities: Landfill 6. Short-Term Debt Tax and Revenue Anticipation Notes 6,425 $ 24,347,449 $ 580,832 $ 580,832 In July 2011, the County issued $15,252,750 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, 2012, was as follows: Balance Balance July 1, 2011 Additions Retirements June 30, 2012 Governmental Activities: FY 2011-12 TRANS $ -- $ 15,252,750 $ 15,252,750 $ -- Total governmental activities $ -- $ 15,252,750 $ 15,252,750 $ -- 49 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 $224,195, 896. A summary of long-term obligations follows: Annual Original Outstanding Type of Indebtedness Interest Principal Issue at (Purpose) Maturity Rates Installments Amount June 30, 2012 Governmental Activities: Pension Obligation Bonds: Series A 6/30/14-6/30/34 Variable $55,000 -$3,440,000 28,020,000 28,020,000 Series B 6/30/14-6/30/34 Variable $295,000-$2,105,000 21,875,000 21,875,000 49,895,000 49,895,000 Certificates of Participation 2003 Certificates of Participation 7/1/04-7/1/14 2%-3.4% $325,000-$415,000 5,150,000 1,205,000 2010 Bangor Fire Station #55 COP 8/1/50 4% $12,000-$52,000 1,100,000 1,032,333 Total Certificates of Participation 6,250,000 2,237,333 Capital Leases Chico Memorial Hall - 492 Rio Lindo 4/10/20 7.40% $33,166-$56,943 583,400 359,589 Chico Memorial Hall - 554 Rio Lindo 4/10/20 5.20% $39,461-$59,196 670,900 399,259 Ford Motor Credit 7/15/14 5.85% $7,500-$8,523 32,150 23,116 Megabyte -Computer System 7/9/12 0.00% $8,668 26,000 8,668 Total Notes Payable 1,312,450 790,632 Notes Payable California Energy Commission Solar Project -phase 1 12/22/18 3.95% $63,794-$263,961 2,777,000 1,575,257 Solar Project -phase 2 6/22/20 3.95% $8,057-$34,750 390,000 243,406 Total Capital Leases 3,167,000 1,818,663 Total Governmental Activities $ 60,624,450 $ 54,741,628 Business-type Activities: 2006 Certificates of Participation 7/1/09-7/1/21 3.4%-4.5% $725,000-$1,165,000 12,025,000 9,770,000 Loan-Neal Road Recycling & Waste Fac. 6/1/16 0% $50,000 500,000 200,000 Total Business-type Activities $12,525,000 $9,970,000 50 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 7. Long-Term Obligations (continued) Summary of Long-Term Obligations The following is a summary of changes in long-term obligations: Governmental Activities: Capital lease obligations Bonds payable Notes payable Certificates of participation Claims and judgments Compensated absences OPEB obligation Total governmental activities Business-Type Activities: Certificates of participation Premium on debt Landfill closure/post- -closure care costs Loan payable Compensated absences Amounts Balance Balance Due Within 7/1/2011 Additions Retirements 6/30/2012 One Year $ 847,810 $ 32,150 $ 89,328 $ 790,632 $ 92,804 49,895,000 -- -- 49,895,000 -- 2,052,624 -- 233,961 1,818,663 243,503 2,439,235 240,765 442,667 2,237,333 402,000 5,579,000 4,227,661 3,880,661 5,926,000 3,300,000 14,210,475 17,736,025 18,072,888 13, 873,612 1,534,220 12,065,034 4,755,994 1,835,731 14,985,297 -- $ 87,089,178 $ 26,992,595 $ 24,555,236 $ 89,526,537 $ 5,572,527 10,550,000 -- 780,000 9,770,000 810,000 135,448 -- 13,545 121,903 13,545 3,204,079 226,460 -- 3,430,539 -- 250,000 -- 50,000 200,000 50,000 172,358 172,956 161,861 183,453 38,000 Total business-type activities $ 14,311,885 $ 399,416 $ 1,005,406 $ 13,705,895 $ 911,545 51 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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, 2012: Fiscal Year Ending Governmental June 30, Activities 2013 141,120 2014 132,452 2015 132,452 2016 123,431 2017 123,431 2018-2020 370,292 Total minimum lease payments 1,023,178 Less: Amount representing interest 232,546 Present value of minimum lease payments $ 790,632 The following is a schedule of net remaining property leased under capital leases at June 30, 2012: Acquisition Accumulated Value Depreciation Governmental Activities: Chico Memorial Halls 1,254,300 139,838 Megabyte Property Tax Acct. Reporting 26,000 6,139 2012 Ford F-350 34,563 4,032 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 2013 $ 4,624,835 2014 4,007,357 2015 3,673,538 2016 3,558,799 2017 3,206,678 Totals 19.071207 52 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 7. Long-Term Obligations (continued) Rental expense was $5,188,955 for all funds for the year ended June 30, 2012 Bonds Payable At June 30, 2012, bonds outstanding consist of the following: 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 2011/2012, the average rate paid for Series B was .53574%. The next payment of interest for Series A is due December 1, 2012, 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, 2012, the estimated (Series B is a variable rate) annual debt service requirements to maturity for the Pension Obligation Bonds are as follows: Fiscal Year Ending June 30, Principal Interest Total 2013 $ -- $ 2,128,492 $ 2,128,492 2014 350,000 2,347,242 2,697,242 2015 470,000 2,443,317 2,913,317 2016 595,000 2,530,532 3,125,532 2017 735,000 2,732,797 3,467,797 2018-2022 6,145,000 12,892,772 19,037,772 2023-2027 11,595,000 10,637,525 22,232,525 2028-2032 19,385,000 6,543,237 25,928,237 2033-2034 10,620,000 921,966 11,541,966 Total $ 49,895,000 $ 43,177,880 $ 93,072,880 53 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 7. Long-Term Obligations (continued) Notes Payable At June 30, 2012, 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, 2012, annual debt service requirements to maturity are as follows: Fiscal Year Ending June 30, Principal 2013 243,503 2014 253,216 2015 263,317 2016 273,721 2017 2018-2020 284,740 500.166 Total Certificates of Participation Governmental Activities Interest 69,464 59,751 49,651 39,247 28,228 22.963 Total 312,967 312,967 312,968 312,968 312,968 523.129 $ 1,818,663 $ 269,304 $ 2,087,967 2003 Certificates of Participation On June 30, 2003, the County issued $5,150,000 in Certificates of Participation (COPS). The proceeds of the COP'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 COPS is 2.57%. Beginning on July 1, 2004, principal payments are due on July 1 of each year. The final principal payment is due on July 1, 2014. 2010 Bangor Fire Station Certificates of Participation On August 11, 2011, the County issued $1,100,000 in Certificates of Participation. The proceeds, which have been paid in installments, have funded the majority of the costs associated with the construction of improvements to Bangor Fire Station #55. Commencing with the interest only payment on February 1, 2011, a payment of interest only is due on February 1 of each year and a payment comprised of principal and interest is due on August 1 of each year. The interest rate is fixed at 4.0% per year. The final principal payment is due on August 1, 2050. 54 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 7. Long-Term Obligations (continued) Certificates of Participation (continued) Fiscal Year Ending June 30, Principal Interest Total 2013 402,000 76,040 $ 478,040 2014 413,000 63,290 476,290 2015 428,000 49,315 477,315 2016 14,000 41,720 55,720 2017 14,000 41,160 55,160 2018-2022 80,000 196,640 276,640 2023-2027 97,000 178,980 275,980 2028-2032 120,000 157,400 277,400 2033-2037 145,000 130,900 275,900 2038-2042 175,000 99,060 274,060 2043-2047 213,000 60,380 273,380 2048-2051 136,333 15,040 151,373 Total $ 2,237,333 $ 1,109,925 $ 3,347,258 Business-Type Activities On November 1, 2006, the County issued $12,025,000 in Certificates of Participation (COPS), to finance 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. Fiscal Year Ending June 30, Principal Interest Total 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 915,000 281,600 1,196,600 2017 950,000 244,300 1,194,300 2018-2022 5,370,000 576,325 5,946,325 Total $ 9,770,000 $ 2,156,825 $ 11,926,825 55 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 7. Long-Term Obligations (continued) Loan Payable Business-Type Activities In 2006, the County 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, 2012, annual debt service requirements to maturity are as follows: Fiscal Year Ending June 30, Principal Interest Total 2013 $ 50,000 $ -- $ 50,000 2014 50,000 -- 50,000 2015 50,000 50,000 2016 Total Compensated Absences 50,000 -- 50,000 $ 200,000 $ -- $ 200,000 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 expense is allocated to each function based on usage. The compensated absences liability attributable to the governmental activities will be liquidated as follows: General Fund 53%, Welfare Fund 16%, Public Health Fund 6%, Behavioral Health Fund 15%, Road Fund 6%, and Nonmajor funds 4%. 56 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 7. Long-Term Obligations (continued) 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 $3,430,539 reported as landfill closure and post-closure care liability at June 30, 2012, represents the cumulative amount reported to date based on the use of 20.25 percent of the estimated capacity of the landfill. The County will recognize the remaining estimated cost of closure and post-closure care of $13,508,134 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 2012. 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, 2012, investments of $4,792,927 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. 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 $16,607,092 at June 30, 2011 to $16,938,673 at June 30, 2012, and the remaining capacity of the landfill decreased from 80.71 percent to 79.75 percent at June 30, 2011 and 2012, respectively. These changes resulted in an increase to the landfill closure and post-closure care liability and caused an increase in expense of $226,460 at June 30, 2012. 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. 57 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 7. Long-Term Obligations (continued) 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, 2012 does not expect to incur a liability. 58 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 8. Restricted Net Assets/Fund Balances Fund Balances Fund balances are presented in the following categories: nonspendable, restricted, committed, assigned and unassigned. A detailed schedule of fund balances at June 30, 2012 is as follows: Nonsp endable: Inventory Prepaid items Total nonspendable fund balance Restricted: Purpose of fund Public Safety HHS Realign. Inmate Welfare DNA-ID Local Share Prob - Uncl Victim Restitu. Env Impact Review Sheriff -Civil Equipment Criminal Justice Facility Sheriff Veh ~ Equip Maint. DA RL Est Fraud Prosecut. Rock Creek Flood Project Planning 2nd Dwelling Tax Collector Cost Drug ~ Gang Activity Fed Forfeitures to DA DA Env ~ Consumer Prot. Asset Seizure -Sheriff Juv Ed/Rec/Special Proj. Sheriff-Fed Revenue Sh. Prob. - Titie IV/TANF Recorder Micrographics Recording System GC27585 Survey Monum. Fire -Water Tender Fire -County Cost Share Llme Saddle Diso. Restit. Sheritf Rural rest. Cash DWR IRWM Cash Indian Gaming Cash Prob. - CCPIA SB678 Prob. - YOBG Rest. Cash Other Total restricted fund balance Connnitted: Imprest cash Deposits Debt service Total committed fund balance Assigned: Emergency reserve Contingencies Total assigned fund balance Unassigned fund balance: Total Fund Balances Other Total Public Behavioral Governmental Governmental General Welfare Health Health Road Funds Funds $ 113,819 $ - $ - $ - $ 364,031 $ - $ 477,850 176,664 176,664 290,483 364,031 654, 514 - 2,257,966 12,253,578 - 15,514,590 32,022,363 62,048,497 2,244,417 2,377,737 - - - 44,335 4,666,489 2,210,583 - - - - - 2,210,583 198,671 - - - - - 198,671 217,172 - - - - - 217,172 413,342 - - - - - 413,342 246,997 - - - - - 246,997 864,177 - - - - - 864,177 135,663 - - - - - 135,663 230,929 - - - - - 230,929 121,264 - - - - - 121,264 254,365 - - - - - 254,365 139,372 - - - - - 139,372 183,991 - - - - - 183,991 126,444 - - - - - 126,444 135,178 - - - - - 135,178 100,323 - - - - - 100,323 220,455 - - - - - 220,455 967,886 - - - - - 967,886 356,934 - - - - - 356,934 223,545 - - - - - 223,545 2,465,279 - - - - - 2,465,279 157,843 - - - - - 157,843 611,081 - - - - - 611,081 929,883 - - - - - 929,883 1,193,706 - - - - - 1,193,706 879,172 - - - - - 879,172 259,524 - - - - - 259,524 593,279 - - - - - 593,279 116,409 - - - - - 116,409 931,780 - - - - - 931,780 985,106 985,106 18,714,771 4,635,703 12,253,578 15,514,590 32,066,698 83,185,340 84,770 - - - - - 84,770 2,796 - - - - - 2,796 721,146 721,146 808,712 808,712 3,500,000 - - - - - 3,500,000 1,559,485 1,559,485 5,059,485 5,059,485 12,396,3 80 (1,726,040) 10, 670, 340 $ 37,269,831 $ 4,635,703 $ 12,253,578 $ (1,726,040) $ 15,878,621 $ 32,066,698 $ 100,378,391 59 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 8. Restricted Net Assets/Fund Balances (continued) The Board of Supervisors adopted the Fund Balance Reserve Policy in January 2010. The policy was created to mitigate operational impacts during difficult economic times, allow the County to respond strategically and responsibly to the challenges of a changing fiscal environment, absorb unanticipated costs, and provide flexibility to react to reductions in County revenues from other governmental agencies. This policy sets forth the parameters and funding methods the County may utilize to establish and maintain an adequate General Fund reserve. General Fund Reserve requirements are classified as follows: • Appropriation for Contingencies -during the annual public hearing on the Proposed Budget, the Board will consider maintaining an amount equal to or greater than five percent (5%) of the proposed budget for the General Fund. • General Fund Reserve should be maintained at an amount equivalent to two months operating expenses for all County governmental funds. Excess Fund Balance Available -when the Fund Balance Available is less than estimated the Auditor-Controller will be directed to reduce the Appropriation for Contingencies. When the Fund Balance Available is greater than estimated the direction will be to, in order of priority, ensure the Appropriation for Contingencies is at the five percent (5%) level, increase the General Fund Reserve to maintain the two months of operating expenses, designate for known and quantified unfunded liabilities, such as Employee pension plan, other Post-Employment benefits or accrued Employee leave. • Unreserved Fund Balance should be maintained to provide adequate working capital and accommodate required adjustments to other reserve accounts, including advances to other funds. • Other Designations of the General Fund establishment of these policies do not preclude the Board of Supervisors from setting aside additional funds for a specific project, program or capital item. 60 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 8. Restricted Net Assets/Fund Balances (continued) Net Assets The government-wide statement of net assets reports $52 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 $ 231,479,037 $ 18,888,417 Outstanding principal of capital-related debt (4,846,628) (9,891,903) Net assets, invested in capital assets, net of related debt $ 226,632,409 $ 8,996,514 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. Fundin..~X 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 10.268% for non-safety employees and 15.726% 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. 61 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 9. County Employees Retirement Plan (Defined Benefit Pension Plan) (continued) Annual Pension Cost For the year ended June 30, 2012, the County's annual pension cost was $13,991,146. The required contribution was determined as part of the June 30, 2009 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 CalPERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a thirty-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, 2009 was 30 years for the Miscellaneous Plan and 30 years for the Safety Plan. Funded Status and Fundin.~ r. The following is the funded status information for each plan as of June 30, 2011, the most recent actuarial valuation date: Entry Age Normal Actuarial Unfunded/ Annual Liability of Assets Liability Ratio Payroll % of Pa.. rr Miscellaneous $ 490,241,593 $ 433,640,093 $ 56,601,500 88.5% $ 89,342,440 63.4% Safety 120,716,989 108,173,489 12,543,500 89.6% 16,885,154 74.3% 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. 62 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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, 2012 were as follows: Miscellaneous 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 $ 10,249,806 (2,769,163) 2,321,707 9,802,350 8,852,251 (950,099) 34,752,470 33.802.371 Percentage of APC Contributed Three-Year Trend Information for PERS Miscellaneous Fiscal Year Ending 6/30/2010 6/30/2011 6/30/2012 Safety Fiscal Year Ending 6/30/2010 6/30/2011 6/30/2012 Annual Pension Cost (APC) 8, 392,159 8, 996, 914 9, 802, 350 Annual Pension Cost (APC) 3,586,184 3,844,611 4,188,796 Contribution 7,655,482 7,701,872 8, 852,251 Contribution 3,271,384 3,291,207 3,782,794 Safety $ 4,380,005 (1,183,334) 992,125 4,188,796 3,782,794 (406,002) 14,850,620 14.444.618 91% 86% 90% Percentage of APC Contributed 91% 86% 90% Total $ 14,629,811 (3,952,497) 3,313,832 13,991,146 12,635,045 (1,356,101) 49,603,090 48246.989 Net Pension Asset 36,047,511 34,752,470 33,802,371 Net Pension Asset 15,404,025 14, 850, 620 14,444,618 63 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 $108.00 per employee per month for 2011. The $108.00 per month increased by law to $112.00 on January 1, 2012, and will be indexed with medical inflation (CPI) for years 2013 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 or the retiree and dependents, if applicable, are deducted from the account until it is depleted, or until the retiree reaches age 65, if earlier. 64 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 10. Other Post Employment Benefits (OPEB) (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 2011, the monthly County contributions are $97.20 and $108.00 for Unequal and Equal Contribution Methods, respectively. For 2012, those amounts increased to $106.40 and $112.00, respectively. Changes in Eligibility for Sick-Leave Buy-out Employees other than non-represented groups hired after June 30, 2010 will not be eligible for sick-leave buyout nor will they receive one year of County-paid health benefits after retirement. Retirees other than non-represented groups who retired on or after January 1, 2010 will be subject to a limit on County reimbursements equal to the sum of the Blue Shield HMO premium, Delta DPO and vision premiums. Healthcare Premiums The following table shows January 1, 2012 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 2011-12 are also included. Blue PERS PERS Delta Delta Shield Kaiser Choice Care Premier Dental HMO HMO PPO PPO Dental PPO Vision Basic Plan Retiree $ 704.69 $ 616.14 $ 559.25 $ 1,002.53 $ 36.02 $ 33.15 $ 13.87 Retiree+l 1,409.38 1,232.28 1,118.50 2,005.06 77.82 72.26 13.87 Family 1,832.19 1,601.96 1,454.05 2,606.58 115.58 113.49 13.87 Medicare Sup plement Retiree 337.99 277.81 383.44 432.43 N/A N/A N/A Retiree+l 675.98 555.62 766.88 864.86 N/A N/A N/A Family 1,013.97 833.43 1,150.32 1,297.29 N/A N/A N/A B. Funding Policy 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. 65 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 10. Other Post Employment Benefits (OPEB) (continued) 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. 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, 2012, the amount actually contributed to the plan, and changes in the County's Net OPEB Obligation/(Asset): Annual required contribution $ 4,937,590 Interest on net OPEB obligation 603,252 Adjustment of annual required contribution (784,848) Annual OPEB cost 4,755,994 Contributions made (1,835,731) Change in net OPEB obligation (Asset) 2,920,263 Net OPEB obligation (Asset) -beginning of year 12,065,034 Net OPEB obligation (Asset) -end of year $14,985,297 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, 2010, 2011, and 2012 are as follows: Fiscal Year Annual Actual Employer Ended OPEB Cost Contribution 6/30/2010 $ 4,583,232 $ 1,398,316 6/30/2011 $ 4,535,295 $ 1,670,400 6/30/2012 $ 4,755,994 $ 1,835,731 AnnuaIOPEB Obligation Cost Contributed (Asset) 30.51% $ 9,200,139 36.83% $ 12,065,034 38.60% $ 14,985,297 The general fund and the special revenue funds have typically been used in prior years to liquidate the net OPEB obligation. 66 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 10. Other Post Employment Benefits (OPEB) (continued) D. Schedule of Fundin.~. The funded status of the plan as of the most recent three 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 Payroll 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% July 1, 2011 $0 $38,478,208 $38,478,208 0.00% 106,227,594 36.22% 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, 201 L 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 8 percent initially, reduced by decrements to an ultimate rate of 5 percent after 3 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, 2012 was 30 years. The County's plan is considered asingle-employer plan under GASB 45. 67 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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, 2012. The claims liability includes all allocated loss adjustment expenses. Changes in the insurance funds' claims liability amount during the fiscal years ended June 30, 2011 and 2012 were as follows: 68 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 11. Risk Mana>ement (continued) Claims Current Year Claims Liability Claims and Changes Current Year Liability Fiscal Year July 1 in Estimates Claim June 30 2010-2011 $ 5,164,000 $ (4,492,903) $ 4,907,903 $ 5,579,000 2011-2012 $ 5,579,000 $ (3,880,661) $ 4,227,661 $ 5,926,000 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, 2012, are presented below: Amount Statement of Net Assets Assets $ 562,081 Liabilities 142,279 Equity $ 419.802 Revenue and Expenses Revenues $ 1,856,610 Expenses 1,778,482 Net Income (Loss) $ 78 128 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, 2012, 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. 69 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 13. Contingencies (continued) Litigation 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, 2012 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: Government-Wide Statement of Activities Fund Statements Government-Wide Statement of Activities Other Business-Type Governmental General Public Bektavioral Road Governmental Activities/ Activities Fund Welfare Health Health Fund Funds Landfill Fhnd balance/net assets, June 30, 2011, as previously reported $ 329,645,273 $ 34,350,613 $ 1,385,059 $ 13,092,291 $ 157,130 $ 16,014,802 $ 34,195,617 $ 22,465,196 Restatements: Reclassify prior year revenue recorded in current year (661,976) -- -- -- (661,976) -- -- -- Capital asset corrections -- -- -- -- -- -- -- 315,957 Total Restatements (661,976) (661,976) 315,957 Fhnd balance/net assets, July 1, 2011, as restated $ 328,983,297 $ 34,350,613 $ 1,385,059 $ 13,092,291 $ (504,846) $ 16,014,802 $ 34,195,617 $ 22,781,153 15. Subsequent Events California State Budd 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 2013 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. 70 COUNTY OF BUTTE, CALIFORNIA NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 16. Stewardship, Compliance, and Accountability Deficit Fund Balance The following fund had deficit fund balances at June 30, 2012: Deficit Fund Balance Behavioral Health Fund $ 1,726,040 Behavioral Health Fund had a deficit fund balance of $1,726,040 at June 30, 2012. The deficit fund balance for the Behavioral Health Fund primarily resulted from reimbursement delays from Federal Financial Participation and the State of California changing their cost report method. The County feels these issues have been resolved and will eliminate the deficit fund balance. 71 o~ ~ ~ o o ~ll~ o 0 0 ~ ~~ ^~i . _ -~ - - _ o ~ T~- ~U ~~ (This Page Intentionally Left Blank) 72 urr o° li °~ o ~ ~ o o~~'°" o \U N'~ Required Supplementary Information urr COUNTY OF BUTTE, CALIFORNIA County Employees' Retirement Plan (Defined Benefit Pension Plan) Schedule of Funding Progress For the Fiscal Year Ended June 30, 2012 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 Date 6/30/2009: Misc. Safety Total 6/30/2010: Misc. Safety Total 6/30/2011: Misc. Safety Total Entry Age Unfunded UAAL as Actuarial Actuarial Actuarial Funded Percentage Value of Accrued Accrued (UAAL) Covered of Covered Assets Liability Liability Ratio Payroll Payroll (A) (B) (B-A) (A/B) (C) ((B-A)/C) $ 389,091,737 $ 435,914,875 $ 46,823,138 89.3% $ 88,613,206 52.8% 96,658,588 107,030,449 10,371,861 90.3% 17,025,702 60.9% $ 485,750,325 $ 542,945,324 $ 57,194,999 89.5% $ 105,638,908 54.1% $ 409,783,064 $ 458,068,571 $ 48,285,507 89.5% $ 88,837,791 54.4% 101,887,180 112,862,174 10,974,994 90.3% 16,802,391 65.3% $ 511,670,244 $ 570,930,745 $ 59,260,501 89.6% $ 105,640,182 56.1% $ 433,640,093 $ 490,241,593 $ 56,601,500 108,173,489 120,716,989 12,543,500 $ 541,813,582 $ 610,958,582 $ 69,145,000 88.5% $ 89,342,440 63.4% 89.6% 16,885,154 74.3% 88.7% $ 106,227,594 65.1% 73 COUNTY OF BUTTE, CALIFORNIA Other Post Employment Benefits (OPEB) Plan Schedule of Funding Progress For the Fiscal Year Ended June 30, 2012 (4) Unfunded (6) (2) Actuarial UAAL as a (1) Actuarial Accrued Percentage Actuarial Actuarial Accrued (3) Liability of Covered Valuation Value of Liability Funded (UAAL) (5) Annual Payroll Date Plan Assets (AAL) ratio (2) - (1) Covered Payroll (4) - (5) 7/1/2007 $ - $ 27,660,497 0.00% $ 27,660,497 $ 101,759,340 27.18% 7/1/2009 - 33,471,811 0.00% 33,471,811 105,638,908 31.69% 7/1/2011 - 38,478,208 0.00% 38,478,208 106,227,594 36.22% 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. 74 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. 75 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND- BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgetary fund balance, beginning of year -restated 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 CHARGES TO APPROPRIATIONS (outflows): General Government: Board of Supervisors: Salaries and employee benefits Services and supplies Other charges Capital assets 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 Auditor-Controller: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Auditor-Controller Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 19,701,217 $ 10,869,280 $ 34,350,613 $ 23,481,333 50,385,691 50,385,681 50,515,660 129,979 3,368,794 3,368,794 2,921,465 (447,329) 2,238,730 2,337,255 2,478,604 141,349 1,059,600 1,059,600 1,109,616 50,016 33,685,009 39,512,309 43,707,200 4,194,891 20,082,325 19,347,530 18,554,491 (793,039) 3,375,849 3,021,248 2,811,391 (209,857) 550,000 6,725,168 2,626,808 (4,098,360) 114,745,998 125,757,585 124,725,235 (1,032,350) 662,449 662,449 659,154 3,295 164,141 167,131 149,3 81 17,750 - 4,604 4,604 - 4,604 - - - 1,445,948 1,457,182 1,449,153 8,029 2,277,142 2,291,366 2,262,292 29,074 3,009,591 2,994,591 2,938,114 56,477 1,099,127 1,658,820 984,142 674,678 - 404,721 229,495 175,226 16,374 369,783 109,522 260,261 (182,601) (8,081) (125,990) 117,909 3,942,491 5,419,834 4,135,283 1,284,551 1,526,451 1,521,841 1,464,356 57,485 157,098 211,937 172,403 39,534 - 9,258 9,258 - 8,487 - - - (197,203) (174,010) (179,968) 5,958 1,494,833 1,569,026 1,466,049 102,977 (continued) 76 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) General Government (continued): General Services Salaries and employee benefits $ 3,516,247 $ 3,571,485 $ 3,353,207 $ 218,278 Services and supplies 3,647,292 4,169,551 3,707,736 461,815 Other charges 37,000 219,270 200,598 18,672 Capital assets 114,700 4,618 - 4,618 Other financing uses (4,264,589) (3,984,847) (3,989,145) 4,298 Total Purchasing 3,050,650 3,980,077 3,272,396 707,681 Treasurer-Tax Collector: Salaries and employee benefits 1,770,354 1,770,354 1,700,776 69,578 Services and supplies 1,034,004 1,094,207 961,331 132,876 Other charges - 7,300 7,299 1 Capital assets 6,768 - - - Otherfinancing uses 158,592 176,741 171,724 5,017 Total Treasurer-Tax Collector 2,969,718 3,048,602 2,841,130 207,472 Assessor: Salaries and employee benefits 2,952,087 2,952,087 2,807,405 144,682 Services and supplies 274,870 252,729 247,777 4,952 Other charges 18,666 42,999 42,998 1 Capital assets 21,301 - - - Other financing uses 270,365 346,894 331,129 15,765 Total Assessor 3,537,289 3,594,709 3,429,309 165,400 Human Resources: Salaries and employee benefits 1,538,393 1,538,393 1,491,851 46,542 Services and supplies 379,310 441,453 281,108 160,345 Other charges - 2,118 2,118 - Capital assets 2,118 - - - Other financing uses (519,225) (519,225) (519,276) 51 Total Human Resources 1,400,596 1,462,739 1,255,801 206,938 County Counsel Salaries and employee benefits 1,202,831 1,202,831 1,225,238 (22,407) Services and supplies 789,914 1,491,587 1,461,748 29,839 Other charges - 9,645 9,645 - Capital assets 9,645 - - - Other financing uses (1,548,202) (1,535,355) (1,538,972) 3,617 Total County Counsel 454,188 1,168,708 1,157,659 11,049 Public Works General Services: Services and supplies 12,031 12,031 11,868 163 Other charges 88,323 88,323 88,323 - Other financing uses 814 814 804 10 Total Public Works General Services 101,168 101,168 100,995 173 (continued) 77 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) General Government (continued): Information Systems Salaries and employee benefits $ 2,450,509 $ 2,450,509 $ 2,443,241 $ 7,268 Services and supplies 1,700,504 1,583,329 1,561,066 22,263 Other charges - 549,479 549,478 1 Capital assets 297,978 51,497 - 51,497 Other financing uses (1,344,486) (1,103,909) (1,282,086) 178,177 Total Information Systems 3,104,505 3,530,905 3,271,699 259,206 Elections: Salaries and employee benefits 760,045 760,045 773,970 (13,925) Services and supplies 770,272 771,200 734,220 36,980 Other charges - 7,127 7,127 - Capital assets 6,307 - - - Other financing uses 49,649 66,884 62,109 4,775 Total Elections 1,586,273 1,605,256 1,577,426 27,830 Community Action Agency Services and supplies 9,578 9,578 9,584 (6) Other charges 344 344 344 - Other financing uses 37,162 37,162 37,152 10 Total SPCL Grant Requirement 47,084 47,084 47,080 4 Tax and Revenue Anticipation Notes: Other charges 240,000 365,635 363,696 1,939 Other financing uses 1,625 1,635 1,632 3 Total Tax and Revenue Anticipation Notes 241,625 367,270 365,328 1,942 Retired Employee Benefits: Salaries and employee benefits - - 5,529 (5,529) Other financing uses - - 1,848 (1,848) Total Retired Employee Benefits - - 7,377 (7,377) Table A Water: Services and supplies 1,380,000 1,380,000 1,203,315 176,685 Total Table A Water 1,380,000 1,380,000 1,203,315 176,685 Unallocated A-87: Services and supplies 61,162 61,162 61,166 (4) Other charges 24,067 24,067 24,067 - Other financing uses 1,070,603 1,070,603 1,090,191 (19,588) Total Unallocated A-87 1,155,832 1,155,832 1,175,424 (19,592) General Revenue and Transfers: Other financing uses 4,609,648 4,609,648 1,132,924 3,476,724 Total General Revenue and Transfers 4,609,648 4,609,648 1,132,924 3,476,724 Total General Government 29,973,042 35,332,224 28,701,487 6,630,737 (continued) 78 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Public Protection: Emergency Services: Services and supplies Total Emergency Services Grand Jury: Services and supplies Other financing uses Total Grand Jury County Share Trial Courts: Services and supplies Other charges Other financing uses Total County Share Trial Courts District Attorney -Criminal: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total District Attorney -Criminal District Attorney -Child Abduction Unit Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 194 $ 194 $ - $ 194 194 194 - 194 111,227 111,227 61,202 50,025 31,196 31,196 31,188 8 142,423 142,423 92,390 50,033 18,257 18,257 12,255 6,002 1,935,979 1,935,979 1,832,485 103,494 63,296 63,296 63,312 (16) 2,017,532 2,017,532 1,908,052 109,480 8,093,171 8,198,025 7,800,658 397,367 739,943 1,096,005 1,017,480 78,525 56,086 105,025 73,324 31,701 29,438 11,037 10,821 216 94,098 136,854 148,640 (11,786) 9,012,736 9,546,946 9,050,923 496,023 Salaries and employee benefits 178,710 175,571 151,231 24,340 Services and supplies 4,046 7,185 7,185 - Other financing uses 42,565 42,565 37,377 5,188 Total District Attorney -Child Abduction Unit 225,321 225,321 195,793 29,528 District Attorney -Welfare Fraud Investigation Salaries and employee benefits 544,128 753,950 683,800 70,150 Services and supplies 10,916 132,306 82,842 49,464 Other charges - 323 323 - Other financing uses 132,530 165,760 148,373 17,387 Total District Attorney -Welfare Fraud Invest. 687,574 1,052,339 915,338 137,001 District Attorney -IHSS Fraud: Salaries and employee benefits Services and supplies Other financing uses Total District Attorney -IHSS Fraud Public Defender: Services and supplies Other charges Other financing uses Total Public Defender 172,287 172,287 61,220 111,067 2,091 2,091 706 1,385 5,175 5,175 5,184 (9) 179,553 179,553 67,110 112,443 2,803,866 2,852,901 2,650,658 202,243 - - 41,078 (41,078) 3,378 3,378 3,372 6 2,807,244 2,856,279 2,695,108 161,171 (continued) 79 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Public Protection (continued): Sheriff -Coroner: Salaries and employee benefits $ 24,144,456 $ 24,679,246 $ 23,736,582 $ 942,664 Services and supplies 8,467,140 9,856,470 8,564,505 1,291,965 Other charges 264,900 1,187,578 1,183,896 3,682 Capital assets 366,659 290,355 245,971 44,384 Other financing uses 1,922,098 1,878,519 1,864,089 14,430 Total Sheriff -Coroner Administration 35,165,253 37,892,168 35,595,043 2,297,125 Criminal Justice Construction: Other charges - 422,060 421,985 75 Other financing uses 1,449,060 1,606,733 590,270 1,016,463 Total Criminal Justice Construction 1,449,060 2,028,793 1,012,255 1,016,538 Juvenile Hall General: Salaries and employee benefits 3,863,428 3,863,428 3,978,474 (115,046) Services and supplies 963,934 965,221 856,742 108,479 Other charges 3,000 19,247 17,537 1,710 Capital assets 14,247 - - - Otherfinancing uses 483,214 483,214 259,212 224,002 Total Juvenile Hall General 5,327,823 5,331,110 5,111,965 219,145 Probation Victim Witness: Salaries and employee benefits 225,647 112,824 104,083 8,741 Services and supplies 18,713 9,314 5,241 4,073 Other charges - 43 43 - Other financing uses 16,864 8,431 8,442 (ll) Total Probation Victim Witness 261,224 130,612 117,809 12,803 Probation General Services: Salaries and employee benefits 7,125,705 7,594,958 7,192,858 402,100 Services and supplies 1,276,580 1,665,247 1,250,706 414,541 Other charges 103,890 228,495 134,354 94,141 Capital assets 5,464 90,000 82,113 7,887 Other financing uses 416,890 505,130 435,613 69,517 Total Probation General Services 8,928,529 10,083,830 9,095,644 988,186 Probation BD/CON: Salaries and employee benefits 126,670 63,335 63,014 321 Services and supplies 157,280 78,640 35,546 43,094 Other financing uses 4,162 2,081 2,088 (7) Total Probation BD/CON 288,112 144,056 100,648 43,408 (continued) 80 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Public Protection (continued): Development Services: Salaries and employee benefits $ 2,531,489 $ 2,531,489 $ 2,437,263 $ 94,226 Services and supplies 1,130,886 1,581,058 884,083 696,975 Other charges 17,000 24,174 22,160 2,014 Capital assets 7,174 - - - Other financing uses 208,345 208,345 202,621 5,724 Total Development Services 3,894,894 4,345,066 3,546,127 798,939 Subdivision Inspection Salaries and employee benefits 457,506 457,506 405,665 51,841 Services and supplies 38,094 30,024 20,310 9,714 Other charges 25,672 34,856 34,855 1 Capital assets 1,114 - - - Other financing uses 15,991 15,991 15,996 (5) Total Subdivision Inspection 538,377 538,377 476,826 61,551 Fire Protection -Regular Service Services and supplies 13,534,584 13,531,852 13,210,908 320,944 Other charges 637,974 469,360 469,360 - Capital assets - - - - Other financing uses 40,914 212,260 172,208 40,052 Total Fire Protection -Regular Service 14,213,472 14,213,472 13,852,476 360,996 Fire Protection -Voluntary Program Salaries and employee benefits 28,923 28,923 23,816 5,107 Services and supplies 636,192 628,192 585,200 42,992 Other charges 43,454 8,000 7,952 48 Capital assets - 43,454 43,897 (443) Total Fire Protection -Voluntary Program 708,569 708,569 660,865 47,704 Fire Protection -Ancillary Services: Services and supplies 41,623 273,472 270,248 3,224 Other charges 586 586 588 (2) Total Fire Protection -Ancillary Services 42,209 274,058 270,836 3,222 Agriculture General Services Salaries and employee benefits 1,753,373 1,753,373 1,743,216 10,157 Services and supplies 229,706 233,758 204,360 29,398 Other charges 25,000 35,794 35,794 - Capital assets 103,346 101,500 99,273 2,227 Other financing uses 102,841 102,841 102,887 (46) Total Agriculture General Services 2,214,266 2,227,266 2,185,530 41,736 (continued) 81 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Public Protection (continued): Original Final Recorder: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Recorder LAFCO Contribution Other charges Total LAFCO Contribution Water Services: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Water Services Total Public Protection Variance with Final Budget Actual Positive Amounts (Negative) $ 791,844 $ 758,844 $ 771,942 $ (13,098) 395,591 350,637 326,455 24,182 400 8,708 8,338 370 15,808 7,500 7,323 177 80,295 302,999 297,132 5,867 1,283,938 1,428,688 1,411,190 17,498 200,000 200,000 198,753 1,247 200,000 200,000 198,753 1,247 527,964 527,964 432,381 95,583 528,654 826,455 477,618 348,837 - 2,178 2,178 - 737 - - - 55,858 55,858 55,872 (14) 1,113,213 1,412,455 968,049 444,406 75,737,266 96,979,107 89,528,730 7,450,377 (continued) 82 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Public Assistance: Children's' Trust Fund -AB2994: Services and supplies $ 155,000 $ 155,000 $ 102,582 $ 52,418 Other financing uses 391 391 384 7 Total Children's' Trust Fund -AB2994 155,391 155,391 102,966 52,425 Welfare Domestic Violence: Services and supplies 30,000 33,000 33,000 - Total Welfare Domestic Violence 30,000 33,000 33,000 - InstitutionaU Correction Services and supplies 286,058 362,052 7,508 354,544 Other charges 49,221 49,221 14,447 34,774 Other financing uses (760) (760) (756) (4) Total InstitutionaU Correction 334,519 410,513 21,199 389,314 Juvenile Court Wards: Other charges 490 490 215 275 Other financing uses 10 10 10 Total Juvenile Court Wards 500 500 215 285 Veteran's Service Officer: Salaries and employee benefits 144,960 169,761 159,894 9,867 Services and supplies 54,957 58,457 52,076 6,381 Other charges - 213 213 - Capital assets 213 - - - Other financing uses 20,213 20,213 20,208 5 Total Veteran's Service Officer 220,343 248,644 232,391 16,253 Total Public Assistance 740,753 848,048 389,771 458,277 (continued) 83 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Education: Farm, Home, and 4H Department: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Farm, Home, and 4H Department Libraries -Literacy Grant: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Libraries -Literacy Grant Libraries Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Libraries Total Education Recreation and cultural services: Butte Meadows Recreation Grant: Services and supplies Other charges Other financing uses Total Butte Meadows Recreation Grant Provisions for Contingencies: Appropriation Contingencies Total Charges to appropriations Budgetary Fund balances, ending Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) $ 150,448 $ 150,448 $ 125,712 $ 24,736 60,953 60,953 52,439 8,514 6,271 7,221 7,118 103 59,544 58,594 53,581 5,013 2,956 2,956 2,964 (8) 280,172 280,172 241,814 38,358 207,275 207,275 180,681 26,594 37,367 37,246 24,519 12,727 4,370 2,082 2,081 1 - 4,370 4,273 97 249,012 250,973 211,554 39,419 1,492,650 1,492,650 1,461,100 31,550 369,721 445,935 379,304 66,631 800,649 71,442 71,442 - 71,419 - - - - 800,649 800,486 163 2,734,439 2,810,676 2,712,332 98,344 3,263,623 3,341,821 3,165,700 176,121 60,000 64,613 19,511 45,102 - 387 386 1 8,247 8,247 432 7,815 68,247 73,247 20,329 52,918 1,559,485 843,971 - 843,971 111,342,416 137,418,418 121,806,017 15,612,401 $ 23,104,799 $ (791,553) $ 37,269,831 $ 14,580,051 (continued) 84 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-GENERAL FUND -BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 -general 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 -general fund $ 124,725,235 (137,913) (2,456,745) $ 122,098,427 $ 121,806,017 (2,869,715) $ 118,936,302 85 o~ ~ ~ o o ~ll~ o 0 0 ~ ~~ ^~i . _ -~ - - _ o ~ T~- ~U ~~ (This Page Intentionally Left Blank) 86 urr 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. 87 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-WELFARE FUND-BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) Budgetary fund balance, beginning of year -restated $ 169,653 $ 1,968,384 $ 1,385,059 $ (583,325) RESOURCES (inflows) Revenues from uses of money and property - - (32,298) (32,298) Aid from other governments 131,075,839 134,216,426 135,866,344 1,649,918 Charges for services 925,089 846,290 895,613 49,323 Other 1,750,256 1,750,256 887,860 (862,396) Other financing sources 3,474,575 16,152,381 - (16,152,381) Amounts available for appropriation 137,225,759 152,965,353 137,617,519 (15,347,834) CHARGES TO APPROPRIATIONS (outflows): Public Protection: Welfare -Public Guardian: Salaries and employee benefits 441,921 436,121 418,092 18,029 Services and supplies 3,300 1,879 266 1,613 Other charges 134,220 141,441 141,402 39 Other financing uses 514,764 514,764 481,933 32,831 Total Welfare -Public Guardian 1,094,205 1,094,205 1,041,693 52,512 Total Public Protection 1,094,205 1,094,205 1,041,693 52,512 Public Assistance: Welfare Administration: Salaries and employee benefits 11,624,504 10,640,512 10,252,516 387,996 Services and supplies 4,425,169 4,861,416 4,597,642 263,774 Other charges 2,769,138 3,114,257 2,906,912 207,345 Capital assets 150,000 205,000 139,432 65,568 Other financing uses (18,968,811) (18,666,119) (17,791,436) (874,683) Total Welfare Administration - 155,066 105,066 50,000 Welfare -Eligibility Salaries and employee benefits 12,998,979 14,438,638 13,622,125 816,513 Services and supplies 146,749 367,053 285,032 82,021 Other charges 505,000 711,890 524,430 187,460 Other financing uses 4,998,472 4,522,774 4,247,661 275,113 Total Welfare -Eligibility 18,649,200 20,040,355 18,679,248 1,361,107 Welfare Protective Services: Salaries and employee benefits 9,001,634 9,044,688 8,413,208 631,480 Services and supplies 2,249,526 2,619,311 1,794,746 824,565 Other charges 1,311,964 1,484,428 1,167,096 317,332 Other financing uses 6,383,079 6,268,047 5,886,890 381,157 Total Welfare Protective Services 18,946,203 19,416,474 17,261,940 2,154,534 (continued) 88 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-WELFARE FUND-BUDGETARY BASIS (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Welfare CALWORKS Program Original Final Variance with Final Budget Actual Positive Amounts (Negative) Salaries and employee benefits $ 4,184,752 $ 4,072,450 $ 4,139,428 $ (66,978) Services and supplies 2,436,634 3,887,285 2,958,389 928,896 Other charges 1,129,116 1,556,130 1,124,951 431,179 Other financing uses 7,072,496 7,410,534 7,174,952 235,582 Total Welfare CALWORKS Program 14,822,998 16,926,399 15,397,720 1,528,679 Welfare Aids: Services and supplies Other charges Total Welfare Aids Welfare General Relief: Services and supplies Total Welfare General Relief Total Public Assistance Total Charges to appropriations Budgetary Fund balances, ending 5,000 9,280 1,480 7,800 83,708,153 84,498,385 81,879,728 2,618,657 83,713,153 84,507,665 81,881,208 2,626,457 - 2,170 2,170 - 2,170 2,170 136,131,554 141,048,130 133,325,182 7,722,948 137,225,759 142,142,335 134,366,875 7,775,460 $ 169,653 $ 12,791,403 $ 4,635,703 $ (8,155,699) 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 fmancial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 134,366,875 (349,113) $ 134,017,762 89 o~ '~ ~ o ~~,~ \ Q a ~ ~~ ^~i . _ -~ - - _ o ~ T~- ~U ~~ (This Page Intentionally Left Blank) 90 urr COUNTY OF BUTTE Public Health Fund The Public Health Fund was established to provide public health services to the residents of Butte County. 91 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-PUBLIC HEALTH FUND-BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Budgetary fund balance, beginning of year -restated $ 12,292,046 $ 11,119,248 $ 13,092,291 $ 1,973,043 RESOURCES (inflows): Licenses and permits 100,000 100,000 120,409 20,409 Fines, forfeitures, and penalties 350,000 350,000 327,287 (22,713) Revenues from uses of money and property 215,000 215,000 146,395 (68,605) Aid from other governments 18,153,765 18,658,313 17,419,254 (1,239,059) Charges for services 2,948,366 3,066,544 2,877,236 (189,308) Other 12,066 12,066 14,828 2,762 Other financing sources 724,304 724,304 724,304 - Amounts available for appropriation 22,503,501 23,126,227 21,629,713 (1,496,514) CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation: Public Health General Services: Salaries and employee benefits 12,631,638 12,709,854 10,950,118 1,759,736 Services and supplies 9,967,489 11,088,203 9,863,807 1,224,396 Other charges 2,020,034 1,767,800 1,416,626 351,174 Capital assets 96,343 297,553 237,875 59,678 Other financing uses - 795,623 - 795,623 Total Public Health General Services 24,715,504 26,659,033 22,468,426 4,190,607 Total Health and Sanitation 24,715,504 26,659,033 22,468,426 4,190,607 Total Charges to appropriations 24,715,504 26,659,033 22,468,426 4,190,607 Budgetary Fund balances, ending $ 10,080,043 $ 7,586,442 $ 12,253,578 $ 4,667,136 92 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE-PUBLIC HEALTH FUND-BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 $ 21,629,713 (724,304) $ 20,905,409 $ 22,468,426 (113,572) $ 22,354,854 93 o~ ~ ~ o o ~ll~ o 0 0 ~ ~~ ^~i . _ -~ - - _ o ~ T~- ~U ~~ (This Page Intentionally Left Blank) 94 urr COUNTY OF BUTTE Behavioral Health Fund The Behavioral Health Fund was established to provide behavioral health services to the residents of Butte County. 95 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BEHAVIORAL HEALTH FUND-BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) Budgetary fund balance, beginning of year -restated $ 72,714 $ (4,482,176) $ (504,846) $ 3,977,330 RESOURCES (inflows): Fines, forfeitures, and penalties 29,268 12,885 98,817 85,932 Revenues from uses of money and property - - (172,665) (172,665) Aid from other governments 50,760,303 50,945,444 47,093,533 (3,851,911) Charges for services 2,164,163 2,443,805 2,183,989 (259,816) Other - - 70,884 70,884 Other financing sources 285,189 1,993,452 285,189 (1,708,263) Amounts available for appropriation 53,238,923 55,395,586 49,559,747 (5,835,839) CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation: Behavioral Health General Services: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Mental Health General Services Mental Health Substance Abuse: Salaries and employee benefits Services and supplies Other charges Total Mental Health Substance Abuse Total Health and Sanitation Total Charges to appropriations Budgetary Fund balances, ending 23,791,396 23,835,897 22,684,065 1,151,832 22,796,738 26,779,105 20,992,663 5,786,442 2,091,596 3,281,928 2,900,283 381,645 6,488 606,610 96,396 510,214 - 174,172 17,730 156,442 48,686,218 54,677,712 46,691,137 7,986,575 2,129,558 2,230,011 2,211,333 18,678 680,839 1,669,200 1,408,639 260,561 438,656 500,397 469,832 30,565 3,249,053 4,399,608 4,089,804 309,804 51,935,271 59,077,320 50,780,941 8,296,379 51,935,271 59,077,320 50,780,941 8,296,379 $ 1,376,366 $ (8,163,910) $ (1,726,040) $ 6,437,870 96 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BEHAVIORAL HEALTH FUND-BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 $ 49,559,747 (285,189) $ 49,274,558 $ 50,780,941 (242,456) $ 50,538,485 97 o~ ~ ~ o o ~ll~ o 0 0 ~ ~~ ^~i . _ -~ - - _ o ~ T~- ~U ~~ (This Page Intentionally Left Blank) 98 urr 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. 99 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -ROAD FUND -BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) Budgetary fund balance, beginning of year -restated $ 13,695,848 $ 12,632,031 $ 16,014,802 $ 3,382,771 RESOURCES (inflows): Licenses and permits Revenues from uses of money and property Aid from other governments Charges for services Other Other financing sources Amounts available for appropriation 44,000 44,000 250,000 250,000 22,863,004 22,599,004 1,973,724 3,035,624 750,000 91,200 2,046,200 1,955,000 27,926,928 27,974,828 78,519 34,519 197,096 (52,904) 13,263,837 (9,335,167) 2,208,291 (827,333) 54,572 (36,628) 1,239,015 (715,985) 17,041,330 (10,933,498) CHARGES TO APPROPRIATIONS (outflows): Public Ways and Facilities: Road Operations: Salaries and employee benefits Services and supplies Other charges Capital assets Other financing uses Total Road Operations Total Public Assistance Provisions for Contingencies: Appropriation Contingencies Total Charges to appropriations Budgetary Fund balances, ending 7,418,253 7,436,253 7,172,454 263,799 19,469,187 21,355,461 8,408,942 12,946,519 667,119 717,680 559,148 158,532 2,603,516 2,642,105 1,026,722 1,615,383 - 230,000 10,245 219,755 30,158,075 32,381,499 17,177,511 15,203,988 30,158,075 32,381,499 17,177,511 15,203,988 1,000,000 1,000,000 - 1,000,000 31,158,075 33,381,499 17,177,511 16,203,988 $ 10,464,701 $ 7,225,360 $ 15,878,621 $ 8,653,261 100 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -ROAD FUND -BUDGETARY BASIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 fmancial reporting purposes Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 17,041,330 (1,211,569) (27,446) $ 15,802,315 $ 17,177,511 (80,636) $ 17,096,875 101 COUNTY OF BUTTE, CALIFORNIA Note to Required Supplementary Information For the Fiscal Year Ended June 30, 2011 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 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). 102 o° li °~ o ~ ~ o Q ~ ~_ 1 0 0 ~'~ ~_ .-.- Q c0U N'~ Combining Nonmajor Governmental Fund 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. This fund is now included in the General Fund. The Fire Protection Fund provides fire protection services to both cities and unincorporated areas in the County. This fund is now included in the General Fund. The Library Fund accounts for the revenues and expenditures relating to libraries. This fund is now included in the General Fund. 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. 103 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. 104 COUNTY OF BUTTE, CALIFORNIA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Capital Projects Equipment Water Fund Replacement Equipment State COPS Resources ASSETS Cash and investments $ 1,628,087 $ 2,651,138 $ 2,211,057 $ 373,372 $ - Cash and investments with fiscal agent - 150,354 - - - Imprestcash - - - - - Interestreceivable 2,709 6,527 7,146 1,383 - Accounts receivable - - - - - Due from other governments 44,335 - - - - Loans receivable - - - - - Total assets $ 1,675,131 $ 2,808,019 $ 2,218,203 $ 374,755 $ - LIABILITIES AND FUND BALANCES Liabilities: Due to other funds $ - $ - $ - $ - $ - Accounts payable 361,907 8,886 19,129 1,233 - Salaries and benefits payable - - - - - Deferred revenue - - - - - Totalliabilities 361,907 8,886 19,129 1,233 - Fund balances: Restricted 1,313,224 2,799,133 2,199,074 373,522 - Total fund balances 1,313,224 2,799,133 2,199,074 373,522 - Total liabilities and fund balances $ 1,675,131 $ 2,808,019 $ 2,218,203 $ 374,755 $ - continued 105 COUNTY OF BUTTE, CALIFORNIA COMBINING BALANCE SHEET (Continued) NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Housing and Child Fire Community Fish and Support Protection Library Transit Development Game Services ASSETS Cash and investments $ - $ - $ 256,270 $ 117,630 $ 108,744 $ 591,994 Cash and investments with fiscal agent - - - - - - Imprestcash - - - - - 2,000 Interest receivable - - 1,718 894 358 4,763 Accounts receivable - - - - - - Due from other governments - - 130,758 87,523 - - Loans receivable - - - 2,731,732 - - Total assets $ - $ - $ 388,746 $ 2,937,779 $ 109,102 $ 598,757 LIABILITIES AND FUND BALANCES Liabilities: Due to other funds $ - $ - $ - $ - $ - $ - Accounts payable - - - 23,282 5,000 4,475 Salaries and benefits payable - - - - - 109,623 Deferred revenue - - - 2,731,732 - 384,012 Total liabilities - - - 2,755,014 5,000 498,110 Fund balances: Restricted - - 388,746 182,765 104,102 100,646 Total fund balances - - 388,746 182,765 104,102 100,646 Total liabilities and fund balances $ - $ - $ 388,746 $ 2,937,779 $ 109,102 $ 598,756 continued 106 COUNTY OF BUTTE, CALIFORNIA COMBINING BALANCE SHEET (Continued) NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds County Debt Service IHSS Public Impact Service Areas Authority Fees Fund Total ASSETS Cash and investments $ 6,943,889 $ 33,977 $ 8,719,015 $ 8,039,065 $ 31,674,238 Cash and investments with fiscal agent - - - 737,720 888,074 Imprest cash - - - - 2,000 Interest receivable 22,837 107 28,378 25,654 102,474 Accounts receivable 10,072 - - - 10,072 Due from other governments 46,302 77,733 - - 386,651 Loans receivable - - - - 2,731,732 Total assets $ 7,023,100 $ 111,817 $ 8,747,393 $ 8,802,439 $ 35,795,241 LIABILITIES AND FUND BALANCES Liabilities: Due to other funds $ - $ - $ 3,650 $ - $ 3,650 Accounts payable 69,562 72 - - 493,546 Salaries and benefits payable - 5,980 - - 115,603 Deferred revenue - - - - 3,115,744 Total liabilities 69,562 6,052 3,650 - 3,728,543 Fund balances: Restricted 6,953,538 105,765 8,743,743 8,802,439 32,066,697 Total fund balances 6,953,538 105,765 8,743,743 8,802,439 32,066,698 Total liabilities and fund balances $ 7,023,100 $ 111,817 $ 8,747,393 $ 8,802,439 $ 35,795,241 107 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Special Revenue Funds Capital Projects Equipment Water Fund Replacement Equipment State COPS Resources REVENUES Taxes $ - $ - $ - $ - $ - Fines, forfeitures, and penalties - - - - - Revenues from uses of money and property 16,697 25,020 22,144 (526) (347) Aid from other governments 561,090 - - 3,612 - Charges for services 2,198,916 963,314 361,745 - - Other 20,195 - - - 3 Total revenues 2,796,898 988,334 383,889 3,086 (344) EXPENDITURES: Current: General government $ 1,129,723 $ - $ 404,852 $ - $ - Public protection 830,751 440,018 - 175,135 77,154 Public ways and facilities - - - - - Health and sanitation 1,216,683 - - - - Public assistance - - - - - Education - - - - - Recreation and cultural services - - - - - Debt Service: Principal - - - - - Interest - - - - - Total expenditures 3,177,157 440,018 404,852 175,135 77,154 Excess (deficiency) of revenues over expenditures (380,259) 548,316 (20,963) (172,049) (77,498) OTHER FINANCING SOURCES (USES): Sale of capital assets - 4,005 - - - Transfers in 844,387 - 6,424 - - Transfer out (108,823) - - (59,476) (112,835) Issuance of debt 240,765 - - - - Total other financing sources (uses) 976,329 4,005 6,424 (59,476) (112,835) Net change in fund balances 596,070 552,321 (14,539) (231,525) (190,333) Fund balances, beginning 717,154 2,246,812 2,213,613 605,047 190,333 Fund balances, ending $ 1,313,224 $ 2,799,133 $ 2,199,074 $ 373,522 $ - continued 108 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (Continued) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 REVENUES Taxes 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: Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES): Sale of capital assets Transfers in Transfer out Issuance of debt Total other financing sources (uses) Net change in fund balances Fund balances, beginning Fund balances, ending Special Revenue Funds Housing and Fire Community Fish and Protection Library Transit Development Game Child Support Services - - - - 21,732 - (14,535) (1,503) 9,053 2,665 745 12,435 - - 2,561,682 1,684,784 - 7,247,102 684 - - - - 26,503 1,840 41 - 68,293 - 4,814 (12,011) (1,462) 2,570,735 1,755,742 22,477 7,290,854 $ - $ - $ - $ 1,764,071 $ - $ - 921,444 - - - 52,251 - - - 1,337,119 - - - - - - - - 7,270,222 - 171 - - - - 921,444 171 1,337,119 1,764,071 52,251 7,270,222 (933,455) (1,633) 1,233,616 (8,329) (29,774) 20,632 (1,997,265) (113,678) (1,211,569) (168,525) - (59,590) (1,997,265) (113,678) (1,211,569) (168,525) - (59,590) (2,930,720) (115,311) 22,047 (176,854) (29,774) (38,958) 2,930,720 115,311 366,699 359,619 133,876 139,604 $ - $ - $ 388,746 $ 182,765 $ 104,102 $ 100,646 continued 109 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (Continued) NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 REVENUES Taxes 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: Principal Interest Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES): Sale of capital assets Transfers in Transfer out Issuance of debt Total other financing sources (uses) Net change in fund balances Fund balances, beginning Fund balances, ending Special Revenue Funds County Debt Service IHSS Public Impact Service Areas Authority Fees Fund Total $ 820,990 $ - $ - $ - $ 820,990 - - 306,603 - 328,335 65,008 847 87,501 97,641 322,845 127,222 243,576 - - 12,429,068 356,455 45,000 - - 3,952,617 - - - - 95,186 1,369,675 289,423 394,104 97,641 17,949,041 $ - $ - $ 14,480 $ 20,255 $ 3,333,380 585,935 - - - 3,082,688 - - - - 1,337,119 638,443 - - - 1,855,126 - 297,437 - - 7,567,659 - - - - 171 97,088 - - - 97,088 - - - 373,261 373,261 - - - 1,976,477 1,976,477 1,321,466 297,437 14,480 2,369,993 19,622,969 48,209 (8,014) 379,624 (2,272,352) (1,673,928) - - - - 4,005 - - - 2,286,156 3,136,967 - - (4,966) - (3,836,727) - - - - 240,765 - - (4,966) 2,286,156 (454,990) 48,209 (8,014) 374,658 13,804 (2,128,918) 6,905,329 113,779 8,369,085 8,788,635 34,195,616 $ 6,953,538 $ 105,765 $ 8,743,743 $ 8,802,439 $ 32,066,698 110 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Final Variance with Final Budget Actual Positive Amounts (Negative) Budgetary fund balance, beginning of year -restated $ 1,075,860 $ (6,724) $ 717,154 $ 723,878 RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Charges for services Other Other financing sources Amounts available for appropriation CHARGES TO APPROPRIATIONS (outflows): General Government: Debt Service Transfer: Other financing uses Total Debt Service Transfer Hall of Records: Capital assets Total Hall of Records County Center Master Plan: Services and supplies Other charges Total County Center Master Plan General Services Building: Services and supplies Total General Services Building Chico Public Works Yard: Services and supplies Capital assets Total Chico Public Works Yard Veterans Memorial Park: Other charges Capital assets Total Veterans Memorial Park Total General Government - - 16,697 16,697 142,500 593,500 561,090 (32,410) 674,122 674,122 2,198,916 1,524,794 - 400,000 20,195 (379,805) 1,353,828 4,406,922 844,387 (3,562,535) 2,170,450 6,074,544 3,641,285 (2,433,259) - 121,316 108,823 12,493 121,316 108,823 12,493 - 600,000 571,694 28,306 600,000 571,694 28,306 195,257 194,427 187,438 6,989 - 6,565 6,561 4 195,257 200,992 193,999 6,993 - 182 - 182 - 182 - 182 - 226,814 36,509 190,305 - 3,186 - 3,186 - 230,000 36,509 193,491 14,300 14,300 14,032 268 129,000 315,147 313,489 1,658 143,300 329,447 327,521 1,926 338,557 1,481,937 1,238,546 243,391 (continued) 111 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS CAPITAL PROJECTS FUND (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Public Protection: Bloomer Mt. Communication Tower: Other charges $ - $ 2,470 $ 2,469 $ 1 Capital assets - 426,492 247,260 179,232 Total Bllomer Mt. Communication Tower - 428,962 249,729 179,233 Public Safety Facilities Modification: Other charges Capital assets Total Public Safety Facilities Modification Victim Witness Remodel: Other charges Capital assets Total Victim Witness Remodel Bangor Fire Station #55: Other charges Capital assets Total Bangor Fire Station #55 Jail Security System - 15,000 14,254 746 - 250,000 175,407 74,593 - 265,000 189,661 75,339 - 8,500 473 8,027 - 64,000 46,924 17,076 - 72,500 47,397 25,103 - 4,144 4,144 - - 15,894 15,432 462 - 20,038 19,576 462 Other charges - 10,000 9,617 383 Capital assets 332,160 333,560 314,771 18,789 Total Jail Security System 332,160 343,560 324,388 19,172 Sheriff Evidence Storage Facility: Services and supplies 450,000 410,456 - 410,456 Other charges - 39,544 - 39,544 Capital assets 50,000 50,000 - 50,000 Total Sheriff Evidence Storage Facility 500,000 500,000 500,000 Total Public Protection 832,160 1,630,060 830,751 799,309 Health and Sanitation: Public Health Lab Services and supplies 80,000 80,000 - 80,000 Other charges - 56,187 21,758 34,429 Capital assets 712,512 702,336 56,133 646,203 Total Public Health Lab 792,512 838,523 77,891 760,632 (continued) 112 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS CAPITAL PROJECTS FUND (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Behavioral Health - Cohasset Remodel: Other charges Capital assets Total Behavioral Health Remodel Original Final Variance with Final Budget Actual Positive Amounts (Negative) $ - $ 20,093 $ 20,081 $ 12 - 397,446 397,339 107 - 417,539 417,420 119 Behavioral Health -Rio Lindo Remodel: Other charges Capital assets Total Behavioral Health Remodel CSS Remodel: Other charges Capital assets Total CSS Remodel Total Health and Sanitation Total Charges to appropriations Budgetary Fund balances, ending - 24,600 9,942 14,658 294,127 351,900 210,234 141,666 294,127 376,500 220,176 156,324 - 39,291 39,291 - - 465,485 461,905 3,580 - 504,776 501,196 3,580 1,086,639 2,137,338 1,216,683 920,655 2,257,356 5,249,335 3,285,980 1,963,355 $ 988,954 $ 818,485 $ 1,072,459 $ 253,974 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 $ 3,641,285 Differences -budget to USGAAP: Transfers from other funds are inflows of budgetary resources but are not revenues for fmancial reporting purposes (844,387) Total revenues as reported on the statement of revenues, expenditures, and changes in fund balance $ 2,796,898 Uses/outflows of resources: Actual amounts (budgetary basis) "total charges to appropriations" from the budgetary comparison schedule $ 3,285,980 Differences -budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (108,823) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 3,177,157 113 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS EQUIPMENT REPLACEMENT SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ 2,291,338 $ 2,204,278 $ 2,246,812 $ 42,534 RESOURCES (inflows): Revenues from uses of money and property 25,000 25,000 25,020 20 Charges for services - - 963,314 963,314 Other financing sources 963,314 963,314 4,005 (959,309) Amounts available for appropriation 988,314 988,314 992,339 4,025 CHARGES TO APPROPRIATIONS (outflows): Public Protection: Sheriff Equipment Replacement: Capital assets Total Sheriff Equipment Replacement Fire Equipment Replacement: Capital assets Total Fire Equipment Replacement Total Public Protection Total Charges to appropriations Budgetary Fund balances, ending 232,000 266,579 265,857 722 232,000 266,579 265,857 722 1,030,000 174,161 855,839 - 1,030,000 174,161 855,839 232,000 1,296,579 440,018 856,561 232,000 1,296,579 440,018 856,561 $ 3,047,652 $ 1,896,013 $ 2,799,133 $ (810,002) 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 $ 992,339 (4,005) $ 988,334 114 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS EQUIPMENT SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ 1,721,601 $ 1,113,008 $ 2,213,613 $ 1,100,605 RESOURCES (inflows) Revenues from uses of money and property - - 22,144 22,144 Charges for services - - 361,745 361,745 Other financing sources 361,745 361,745 6,424 (355,321) Amounts available for appropriation 361,745 361,745 390,313 28,568 CHARGES TO APPROPRIATIONS (outflows): General Government: ISF Equipment Replacement: Other charges Total ISF Equipment Replacement Total General Government Total Charges to appropriations Budgetary Fund balances, ending 567,676 850,922 404,852 446,070 567,676 850,922 404,852 446,070 567,676 850,922 404,852 446,070 567,676 850,922 404,852 446,070 $ 1,515,670 $ 623,831 $ 2,199,074 $ 1,575,243 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 $ 390,313 (6.4241 $ 383,889 115 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS STATE COPS SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Budgetary fund balance, beginning of year -restated $ 324,623 $ (10,832) $ 605,047 $ 615,879 RESOURCES (inflows): Revenues from uses of money and property - - (526) (526) Aid from other governments 646,600 (80,300) 3,612 83,912 Amounts available for appropriation 646,600 (80,300) 3,086 83,386 CHARGES TO APPROPRIATIONS (outflows) Public Protection: District Attorney -State COPS: Services and supplies 46,184 79,697 79,623 74 Other charges (284) - - - Total District Attorney -State COPS 45,900 79,697 79,623 74 Sheriff -State COPS -Jail: Services and supplies 50,000 97,185 95,512 1,673 Other charges 700 - - - Total Sheriff -State COPS -Jail 50,700 97,185 95,512 1,673 Juvenile Justice Plan: Other financing uses 550,000 59,500 59,476 24 Total Juvenile Justice Plan 550,000 59,500 59,476 24 Total Public Protection 646,600 236,382 234,611 1,771 Total Charges to appropriations 646,600 236,382 234,611 1,771 Budgetary Fund balances, ending $ 324,623 $ (327,514) $ 373,522 $ 701,036 (continued) 116 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS STATE COPS SPECIAL REVENUE FUND (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 $ 234,611 Differences -budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (59,476) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 175,135 117 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS TRANSIT SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ 433,364 $ 435,364 $ 366,699 $ (68,665) RESOURCES (inflows): Revenues from uses of money and property Aid from other governments Amounts available for appropriation CHARGES TO APPROPRIATIONS (outflows): Public Ways and Facilities: Transit -System Operations Other charges Other financing uses Total Transit -System Operations Total Public Ways and Facilities Total Charges to appropriations Budgetary Fund balances, ending 10,000 10,000 9,053 (947) 3,000,000 3,000,000 2,561,682 (438,318) 3,010,000 3,010,000 2,570,735 (439,265) 1,210,000 1,338,293 1,337,119 1,174 1,800,000 1,671,707 1,211,569 460,138 3,010,000 3,010,000 2,548,688 461,312 3,010,000 3,010,000 2,548,688 461,312 3,010,000 3,010,000 2,548,688 461,312 $ 433,364 $ 435,364 $ 388,746 $ (46,618) 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 $ 2,548,688 Differences -budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (1,211,569) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 1,337,119 118 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Budgetary fund balance, beginning of year -restated $ 329,820 $ 61,229 $ 359,619 $ 298,390 RESOURCES (inflows): Revenues from uses of money and property 2,000 2,000 2,665 665 Aid from other governments 563,875 5,012,875 1,684,784 (3,328,091) Other 221,690 221,690 68,293 (153,397) Amounts available for appropriation 787,565 5,236,565 1,755,742 (3,480,823) CHARGES TO APPROPRIATIONS (outflows): General Government: CDBG Administration: Other charges (1,072) (1,072) (1,092) 20 Other financing uses - 168,525 168,525 - Total CDBG Administration (1,072) 167,453 167,433 20 08-EDEF-5887: Services and supplies - 48,334 48,334 - Tota108-EDEF-5887 - 48,334 48,334 - 09-EDEF-6537: Services and supplies 153,000 292,864 78,676 214,188 Other charges - 6,000 6,488 (488) Tota109-EDEF-6537 153,000 298,864 85,164 213,700 09-PTAE-6559: Services and supplies 1,375 31,782 31,782 - Other charges - 2,128 1,628 500 Tota109-PTAE-6559 1,375 33,910 33,410 500 11-PTEC-7614: Services and supplies - 10,000 - 10,000 Other charges - 40,000 2,132 37,868 Totalll-PTEC-7614 - 50,000 2,132 47,868 CDBG General Allocation Grant: Services and supplies 410,000 452,926 286,504 166,422 Other charges - 28,372 9,921 18,451 Total CDBG General Allocation Grant 410,000 481,298 296,425 184,873 DRI 2008 Fires: Services and supplies - 3,068,420 1,087,329 1,981,091 Other charges - 1,329,827 108,330 1,221,497 Total DRI 2008 Fires - 4,398,247 1,195,659 3,202,588 HCD -Revolving Loan: Services and supplies 209,300 248,485 90,104 158,381 Other charges 14,390 15,790 13,935 1,855 Total HCD -Revolving Loan 223,690 264,275 104,039 160,236 Total General Government 786,993 5,742,381 1,932,596 3,809,785 Total Charges to appropriations 786,993 5,742,381 1,932,596 3,809,785 Budgetary Fund balances, ending $ 330,392 $ (444,587) $ 182,765 $ 627,352 (continued) 119 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS HOUSING AND COMMUNITY DEVELOPMENT SPECIAL REVENUE FUND (continued) FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Explanation of Differences between Budgetary Inflows and Outflows and USGAAP Revenues and Expenditures: Sources/inflows of resources: Uses/outflows of resources: Actual amounts (budgetary basis) °total charges to appropriations" from the budgetary comparison schedule $ 1,932,596 Differences - budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (168,525) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 1,764,071 120 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS FISH AND GAME SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ 78,555 $ 50,708 $ 133,876 $ 83,168 RESOURCES (inflows): Fines, forfeitures, and penalties Revenues from uses of money and property Amounts available for appropriation CHARGES TO APPROPRIATIONS (outflows): Public Protection: Fish and Game: Services and supplies Other charges Total Fish and Game Total Public Protection Total Charges to appropriations Budgetary Fund balances, ending 18,867 18,867 2,337 2,337 21,204 21,204 40,692 49,988 17,946 17,946 58,638 67,934 21,732 2,865 745 (1,592) 22,477 1,273 34,311 15,677 17,940 6 52,251 15,683 58,638 67,934 52,251 15,683 58,638 67,934 52,251 15,683 $ 41,121 $ 3,978 $ 104,102 $ 100,124 121 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS CHILD SUPPORT SERVICES SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ 80,111 $ 130,111 $ 139,604 $ 9,493 RESOURCES (inflows) Revenues from uses of money and property 30,000 30,000 12,435 (17,565) Aid from other governments 8,995,946 8,995,946 7,247,102 (1,748,844) Charges for services 29,000 29,000 26,503 (2,497) Other 100 100 4,814 4,714 Amounts available for appropriation 9,055,046 9,055,046 7,290,854 (1,764,192) CHARGES TO APPROPRIATIONS (outflows): Public Assistance: Child Support Services: Salaries and employee benefits Services and supplies Other charges Other financing uses Total Child Support Services Total Public Assistance Total Charges to appropriations Budgetary Fund balances, ending 7,740,446 7,235,670 5,778,001 1,457,669 722,032 721,564 505,837 215,727 592,568 593,036 960,061 (367,025) - 504,776 85,913 418,863 9,055,046 9,055,046 7,329,812 1,725,234 9,055,046 9,055,046 7,329,812 1,725,234 9,055,046 9,055,046 7,329,812 1,725,234 $ 80,111 $ 130,111 $ 100,646 $ (29,465) 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 $ 7,329,812 Differences -budget to USGAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (59,590) Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balance $ 7,270,222 122 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS COUNTY SERVICE AREAS SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ 4,524,971 $ 4,524,971 $ 6,905,329 $ 2,380,358 RESOURCES (inflows) Taxes 829,127 Revenues from uses of money and property 135,780 Aid from other governments 98,080 Charges for services 343,034 Other 5,348 Amounts available for appropriation 1,411,369 CHARGES TO APPROPRIATIONS (outflows): 829,127 820,990 (8,137) 135,780 65,008 (70,772) 98,080 127,222 29,142 343,034 356,455 13,421 5,348 - (5,348) 1,411,369 1,369,675 (41,694) Public protection 1,046,922 1,046,922 585,935 460,987 Health and sanitation 1,259,864 1,259,864 638,443 621,421 Recreation and cultural services 131,095 131,095 97,088 34,007 Other charges 3,750 3,750 - 3,750 Total Charges to appropriations 2,441,631 2,441,631 1,321,466 1,120,165 Budgetary Fund balances, ending $ 3,494,709 $ 3,494,709 $ 6,953,538 $ 3,458,829 123 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS IHSS PUBLIC AUTHORITY SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ - $ (115,780) $ 113,779 $ 229,559 RESOURCES (inflows): Revenues from uses of money and property - - 847 847 Aid from other governments 250,622 250,622 243,576 (7,046) Charges for services 45,000 45,000 45,000 - Amounts available for appropriation 295,622 295,622 289,423 (6,199) CHARGES TO APPROPRIATIONS (outflows): Public Assistance: IHSS Public Authority Salaries and employee benefits 259,977 259,977 261,204 (1,227) Services and supplies 44,948 44,948 31,073 13,875 Other charges 5,152 5,152 5,160 (8) Total IHSS Public Authority 310,077 310,077 297,437 12,640 Total Public Assistance 310,077 310,077 297,437 12,640 Total Charges to appropriations 310,077 310,077 297,437 12,640 Budgetary Fund balances, ending $ (14,455) $ (130,235) $ 105,765 $ 236,000 124 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS IMPACT FEES SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ 8,864,556 $ 7,729,278 $ 8,369,085 $ 639,807 RESOURCES (inflows): Fines, forfeitures, and penalties Revenues from uses of money and property Amounts available for appropriation CHARGES TO APPROPRIATIONS (outflows): Public Assistance: IHSS Public Authority: Other charges Other financing uses Total IHSS Public Authority Total Public Assistance Total Charges to appropriations Budgetary Fund balances, ending 376,378 376,378 306,603 (69,775) 83,640 83,640 87,501 3,861 460,018 460,018 394,104 (65,914) 114 114 14,480 (14,366) 160,000 160,000 4,966 155,034 160,114 160,114 19,446 140,668 160,114 160,114 19,446 140,668 160,114 160,114 19,446 140,668 $ 9,164,460 $ 8,029,182 $ 8,743,743 $ 433,225 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 $ 19,446 (4,966) $ 14,480 125 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS DEBT SERVICE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Budgeted Amounts Original Actual Final Amounts Variance with Final Budget Positive (Negative) Budgetary fund balance, beginning of year -restated $ (302,794) $ 7,805,323 $ 8,788,635 $ 983,312 RESOURCES (inflows) Revenues from uses of money and property - - 97,641 97,641 Other financing sources 61,316 121,316 - (121,316) Interfundtransfers 2,727,089 2,727,089 2,286,156 (440,933) Amounts available for appropriation 2,788,405 2,848,405 2,383,797 (464,608) CHARGES TO APPROPRIATIONS (outflows): General Government: POB Series A: Services and supplies Other charges Total POB Series A POB Series B: Services and supplies Other charges Total POB Series B Chico Memorial Ha11492 Rio Lindo: Other charges Total Chico Memorial Ha11492 Rio L. Chico Memorial Ha11554 Rio Lindo: Other charges Total Chico Memorial Ha11554 Rio L. CEC Solar: Other charges Total CEC Solar Total General Government 6,703 6,703 6,703 - 1,699,283 1,699,293 1,699,284 9 1,705,986 1,705,996 1,705,987 9 2,500 2,500 2,500 - 578,529 578,494 119,695 458,799 581,029 580,994 122,195 458,799 61,454 61,459 61,456 3 61,454 61,459 61,456 3 62,578 62,588 62,587 1 62,578 62,588 62,587 1 314,494 314,504 314,503 1 314,494 314,504 314,503 1 2,725,541 2,725,541 2,266,728 458,813 (continued) 126 COUNTY OF BUTTE, CALIFORNIA BUDGET COMPARISON SCHEDULE -BUDGETARY BASIS (continued) DEBT SERVICE FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Public Protection: DA-Ford Motor Credit x16373: Other charges 1,548 1,548 - 1,548 Total DA-Ford Motor Credit x16373 1,548 1,548 - 1,548 Bangor Fire Station Other charges 61,316 121,316 103,265 18,051 Total Bangor Fire Station 61,316 121,316 103,265 18,051 Total Public Protection 62,864 122,864 103,265 19,599 Total Charges to appropriations 2,788,405 2,848,405 2,369,993 478,412 Budgetary Fund balances, ending $ (302,794) $ 7,805,323 $ 8,802,439 $ 997,116 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 $ 2,383,797 (2 2RF 15F1 $ 97,641 127 o~ ~ ~ o o ~ll~ o 0 0 ~ ~~ ^~i . _ -~ - - _ o ~ T~- ~U ~~ (This Page Intentionally Left Blank) 128 urr o~ ~ o o ~1~~ o 0 0 o i~ -~_ _ - _~- - - _ o o -_---~- _ =~~. o ~(~ ~~ Internal Service Funds urr 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 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 Miscellaneous Insurance Fund accounts for the financing of the County's miscellaneous self- insurances. The Utilities Clearing Fund accounts for the utilities provided to County departments. 129 o~ ~ o c ~ll~ o o s _ _o ~ ?~ ~(~ ~~ (This Page Intentionally Left Blank) 130 urr COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF FUND NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2012 ASSETS Self Insurance Worker's Compensation Unemployment Insurance Current assets: Cash and investments Due from other funds Interest receivable Accounts receivable Deposits with others Total current assets Noncurrent assets: Capital assets: Depreciable: Equipment Less: Accumulated depreciation Total capital assets, net Total noncurrent assets Total assets $ 3,223,448 $ 11,487,736 $ 1,263,207 - 7,965 - 11,619 43,719 4,902 - 5,114 - - 175,000 - 3,235,067 11,719,534 1,268,109 10,671 34,790 - (3,735) (11,189) - 6,936 23,601 - 6,936 23,601 - 3,242,003 11,743,135 1,268,109 LIABILITIES Current liabilities: Accounts payable Claims and judgments, current portion Total current liabilities 111,236 141,260 383 1,400,000 1,900,000 - 1,511,236 2,041,260 383 Noncurrent liabilities: Claims and judgments, less current portion Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets 92,000 2,534,000 92,000 2,534,000 1,603,236 4,575,260 383 6,936 23,601 - 1,631, 831 7,144,274 1,267,726 $ 1,638,767 $ 7,167,875 $ 1,267,726 (continued) 131 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF FUND NET ASSETS (continued) INTERNAL SERVICE FUNDS JUNE 30, 2012 Medical Liability ASSETS Current assets: Cash and investments Due from other funds Interest receivable Accounts receivable Deposits with others Total current assets Noncurrent assets: Capital assets: Depreciable: Equipment Less: Accumulated depreciation Total capital assets, net Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Claims and judgments, current portion Total current liabilities Noncurrent liabilities: Claims and judgments, less current portion Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets Miscellaneous Insurance Utilities Clearing Total $ 111,019 $ 53,363 $ 544,755 $ 16,683,528 - + - 7,965 363 175 1,275 62,053 - - - 5,114 - - - 175,000 111,382 53,538 546,030 16,933,660 - - - 45,461 - - - (14, 924) - - - 30,537 - - - 30,537 111,382 53,538 546,030 16,964,197 - 2,626,000 -_ - 2,626,000 148,898 6,327,777 - - - 30,537 111,382 53,538 397,132 10,605,883 $ 111,382 $ 53,538 $ 397,132 $ 10,636,420 - - 148,898 401,777 - - 3,300,000 - - 148,898 3,701,777 132 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, 2012 OPERATING REVENUES Charges for services Other revenue Total operating revenue OPERATING EXPENSES Salaries and employee benefits Service and supplies Claims and judgments Other expenses Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Interest income Total nonoperating revenue (expense) Net Income (Loss) Before Transfers Transfers in Transfers out Change in net assets Net assets, beginning Total net assets, ending Self Worker's Unemployment Insurance Compensation Insurance $ 1,736,464 $ 1,645,010 $ 262,092 74,504 694,108 - 1,810,968 2,339,118 262,092 - - 384,785 305,170 250,266 1,908 1,547,858 2,679,803 - 273,007 296,969 4,260 712 5,713 - 2,126,747 3,232,751 390,953 (315,779) (893,633) (128,861) 34,642 123,060 13,586 34,642 123,060 13,586 (281,137) (770,573) (115,275) - 11,625 - (711) (5,713) - (281,848) (764,661) (115,275) 1,920,615 7,932,536 1,383,001 $ 1,638,767 $ 7,167,875 $ 1,267,726 (continued) 133 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, 2012 OPERATING REVENUES Charges for services Other revenue Total operating revenue OPERATING EXPENSES Salaries and employee benefits Service and supplies Claims and judgments Other expenses Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Interest income Total nonoperating revenue (expense) Net Income (Loss) Before Transfers Transfers in Transfers out Change in net assets Total net assets, beginning Total net assets, ending Medical Miscellaneous Utilities Liability Insurance Clearing Total $ 115,000 $ 147,895 $ 2,424,983 6,331,444 - - - 768,612 115,000 147,895 2,424,983 7,100,056 - - - 384,785 87,226 137,658 2,054,589 2,836,817 - - - 4,227,661 1,104 1,3 56 16,284 592, 980 - - - 6,425 88,330 139,014 2,070,873 8,048,668 26,670 8,881 354,110 (948,612) 1,940 821 6,721 180,770 1, 940 821 6,721 180,770 28,610 9,702 360,831 (767,842) - - - 11,625 - - (312,968) (319,392) 28,610 9,702 47,863 (1,075,609) 82,772 43,836 349,269 11,712,029 $ 111,382 $ 53,538 $ 397,132 $ 10,636,420 134 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Self Insurance CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 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 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 Total cash and investments Worker's Compensation Unemployment Insurance 1,938,428 $ 2,276,039 $ 262,092 (1,404,764) (3,633,960) (5,785) - (75) (384,785) 533,664 (1,357,996) (128,478) - 11,625 (711) (5,713) (711) 5,912 (25,879) (25,879) 35,005 143,655 16,077 35,005 143,655 16,077 567,958 (1,234,308) (112,401) 2,655,490 12,722,044 1,375,608 $ 3,223,448 $ 11,487,736 $ 1,263,207 $ 3,223,448 $ 11,487,736 $ 1,263,207 $ 3,223,448 $ 11,487,736 $ 1,263,207 (continued) 135 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CASH FLOWS (continued) INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers Cash paid to suppliers for goods and services Cash paid to employees for services Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 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 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 Medical Miscellaneous Utilities Liability Insurance Clearing Total $ 115,000 $ 147,895 $ 2,427,829 7,167,283 (88,330) (139,014) (1,948,309) (7,220,162) - - - (384,860) 26,670 8,881 479,520 (437,739) - - - 11,625 - - (312,968) (319,392) - - (312,968) (307,767) - - - (25,879) - - - (25,879) 1,954 855 6,747 204,293 1,954 855 6,747 204,293 28,624 9,736 173,299 (567,092) 82,395 43,627 371,456 17,250,620 $ 111,019 $ 53,363 $ 544,755 $ 16,683,528 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO STATEMENT OF NET ASSETS: Cash and investments $ 111,019 $ 53,363 $ 544,755 $ 16,683,528 Total cash and investments $ 111,019 $ 53,363 $ 544,755 $ 16,683,528 (continued) 136 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CASH FLOWS (continued) INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Self Insurance Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) Adjustment to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in assets and liabilities: (Increase) decrease in: Accounts receivable Deposits with others Increase (decrease)in: Accounts payable Accrued salaries and benefits Claims and judgments Net cash provided (used) by operating activities Worker's Compensation Unemployment Insurance $ (315,779) $ (893,633) $ (128,861) 711 5,713 - 127,460 (13,079) - - (50,000) - 55,272 (87,922) 383 - (75) - 666,000 (319,000) - $ 533,664 $ (1,357,996) $ (128,478) (continued) 137 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CASH FLOWS (continued) INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Medical Miscellaneous Utilities Liability Insurance Clearing Total Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ 26,670 $ 8,881 $ 354,110 $ (948,612) Adjustment to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation - - - 6,424 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable - - 2,846 117,227 Deposits with others - - - (50,000) Increase (decrease)in: Accounts payable - - 122,564 90,297 Accrued salaries and benefits - - - (75) Claims and judgments - - - 347,000 Net cash provided (used) by operating activities $ 26,670 $ 8,881 $ 479,520 $ (437,739) 138 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-620 Fund accounts for funds held for other government agencies. 139 /~ o, 0 o ~~,o l'# o a ~_ o \o (This Page Intentionally Left Blank) 140 UTT COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUNDS JUNE 30, 2012 Tax Other Resources Total ASSETS Cash and investments Interest receivable Property tax receivable Total assets LIABILITIES Agency funds held for others Total liabilities $ 15,341,647 $ 10,320,425 $ 25,662,072 - 49,761 49,761 - 15,192,871 15,192,871 $ 15,341,647 $ 25,563,057 $ 40,904,704 $ 15,341,647 $ 25,563,057 $ 40,904,704 $ 15,341,647 $ 25,563,057 $ 40,904,704 (continued) 141 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES (continued) AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Other ASSETS Cash and investments 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-620 ASSETS Cash and investments Interest receivable Total assets LIABILITIES Agency funds held for others Total liabilities Balance July 1, 2011 Additions Deductions $ 15,436,580 $ 26,747,516 $ 26,842,449 $ 15,341,647 $ 15,436,580 $ 26,747,516 $ 26,842,449 $ 15,341,647 $ 15,436,580 $ 26,747,516 $ 26,842,449 $ 15,341,647 $ 15,436,580 $ 26,747,516 $ 26,842,449 $ 15,341,647 $ 7,722,531 $ 8,520,800 $ 5,922,906 $ 10,320,425 62,775 49,761 62,775 49,761 15,554,053 15,192,871 15,554,053 15,192,871 $ 23,339,359 $ 23,763,432 $ 21,539,734 $ 25,563,057 $ 23,339,359 $ 23,763,432 $ 21,539,734 $ 25,563,057 $ 23,339,359 $ 23,763,432 $ 21,539,734 $ 25,563,057 Balance June 30, 2012 $ 613 $ - $ 613 $ - 26 - 26 - $ 639 $ - $ 639 $ - 639 - 639 - $ 639 $ - $ 639 $ - (continued) 142 COUNTY OF BUTTE, CALIFORNIA COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES (continued) AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 Balance July 1, 2011 Additions Deductions Balance June 30, 2012 Total Agency Funds ASSETS Cash and investments $ 23,159,724 $ 35,268,316 $ 32,765,968 $ 25,662,072 Interest receivable 62,801 49,761 62,801 49,761 Property tax receivable 15,554,053 15,192,871 15,554,053 15,192,871 Total assets $ 38,776,578 $ 50,510,948 $ 48,382,822 $ 40,904,704 LIABILITIES Agency funds held for others $ 38,776,578 $ 50,510,948 $ 48,382,822 $ 40,904,704 Total liabilities $ 38,776,578 $ 50,510,948 $ 48,382,822 $ 40,904,704 143 o~ ~ o c ~ll~ o o s _ _o ~ ?~ ~(~ ~~ (This Page Intentionally Left Blank) 144 urr 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. 145 o~ ~ ~ o o ~ll~ o 0 0 ~ ~~ ^~i . _ -~ - - _ o ~ T~- ~U ~~ (This Page Intentionally Left Blank) 146 urT COUNTY OF BUTTE, CALIFORNIA NET ASSETS by COMPONENT LAST TEN FISCAL YEARS (accrual basis of accountinel For the Fiscal Year Ended June 3Q, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Governmental activities: Invested in capital assets, net of related debt $ 346,872,973 $ 28Z~„'-~ ~ ~ $ 328,573,058 $ 313,955,354 $ 299,087,057 $ 280,126,245 $ 269,571,545 $ 263,205,332 $ 243,321,441 $ 226,632,409 Restricted 43,991,120 29,10~~_~s~7 14,971,692 16,696,959 26,321,708 45,999,726 51,089,379 49,225,674 78,363,897 83,185,340 Unrestricted 23,109,853 28,188,0-^ 39,547,523 45,147,228 44,293,530 19,565,376 29,823,697 35,430,215 7,959,935 129,396 Total governmental activities net assets $ 413,973,946 $ 344,523,998 $ 383,092,273 $ 375,799,541 $ 369,702,295 $ 345,691,347 $ 350,484,621 $ 347,861,221 $ 329,645,273 $ 309,947,145 Businesatvoe activities: Invested in capital assets, net of related debt $ 4,389,868 $ 6,799,310 $ 8,402,774 $ 8,748,541 $ 1,792,507 $ 4,389,846 $ 5,046,136 $ 7,162,066 $ 8,912,181 $ 8,996,514 Restricted - 6,196,080 6,434,145 6,691,502 4,083,228 4,300,259 4,421,316 5,547,422 4,753,072 - Unrestricted 9,311,498 520,516 (313,620) (753,677) 11,463,088 10,256,700 10,664,266 9,326,821 8,799,943 15,310,206 Total business-Type activities net assets $ 13,701,366 $ 13,515,906 $ 14,523,299 $ 14,686,366 $ 17,338,823 $ 18,946,805 $ 20,131,718 $ 22,036,309 $ 22,465,196 $ 24,306,720 Primary eovernment: Invested in capital assets, net of related debt $ 351,262,841 $ 294,028,532 $ 336,975,832 $ 322,703,895 $ 300,879,564 $ 284,516,091 $ 274,617,681 $ 270,367,398 $ 252,233,622 $ 235,628,923 Restricted 43,991,120 35,302,777 21,405,837 23,388,461 30,404,936 50,299,985 55,510,695 54,773,096 83,116,969 83,185,340 Unrestricted 32,421,351 28,708,595 39,233,903 44,393,551 55,756,618 29,822,076 4Q,487,963 44,757,037 16,759,878 15,439,602 Total primary government net assets $ 427,675,312 $ 358,039,904 $ 397,615,572 $ 390,485,907 $ 387,041,118 $ 364,638,152 $ 370,616,339 $ 369,897,531 $ 352,110,469 $ 334,253,865 Source: Auditor-Controller, County of Butte 147 COUNTY OF BUTTE, CALIFORNIA CHANGES IN NET ASSETS LAST TEN FISCAL YEARS (accrual basis of accountinel Governmental 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 contibutions Capital grants and contibutions Total governmental activities program revenues Net Expense General Revenues and Transfers Taxes: Property Taxes Sales taxes Other taxes and related revenues Grants and contributions not restricted to specific programs Unreshicted investment earnings Gain (Loss) on Sale/Disposal of Capital Assets Miscellaneous Transfers Total general revenues and transfers Change in net assets- -governmeral activities For the Fiscal Year Ended June 3Q, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ 13,403,744 $ 19,988,028 $ 28,108,571 $ 16,617,793 $ 19,086,835 $ 20,865,771 $ 20,710,290 $ 25,025,047 $ 29,168,334 $ 30,060,660 67,875,626 69,137,314 82,634,178 81,999,331 87,500,747 96,664,267 94,362,185 88,781,607 91,167,264 93,246,404 28,463,533 28,079,018 17,520,672 31,531,708 34,623,721 39,999,631 34,975,071 30,108,420 36,686,173 37,081,727 55,095,207 55,942,561 56,395,525 58,593,884 64,268,283 72,458,490 67,582,300 72,502,065 72,015,960 75,317,142 127,500,579 126,530,857 130,935,568 130,966,814 135,871,668 142,125,227 142,615,875 143,688,838 148,22Q,091 141,998,777 2,522,005 2,749,824 2,723,315 2,905,270 3,117,432 3,394,070 3,291,233 2,805,328 2,959,473 3,208,699 533,602 393,637 499,967 658,741 604,386 374,615 524,852 512,353 530,319 583,937 3,608,601 4,183,940 4,315,186 3,696,005 2,659,630 2,499,474 2,701,482 2,488,759 295,394,296 302,821,239 322,426,397 327,457,481 349,388,258 379,578,076 366,721,436 365,923,132 383,449,096 383,986,105 5,856,655 6,461,374 16,760,879 16,779,891 19,903,572 20,463,697 16,567,360 21,694,710 22,092,523 19,859,373 13,731,788 8,021,648 6,461,794 5,581,142 5,285,862 6,000,509 9,180,534 10,708,534 10,398,936 9,364,760 2,631,921 925,783 2,68Q,446 2,932,837 3,439,296 3,547,975 4,082,071 2,225,165 2,216,854 2,286,810 6,391,541 5,929,611 4,109,596 4,041,916 5,011,027 5,176,893 5,673,115 5,756,094 5,785,533 5,607,738 1,157,862 2,289,201 393,023 205,520 354,261 543,906 711,842 676,610 1,079,724 1,012,741 327,068 72,357 72,532 118,108 101,360 89,362 113,684 146,212 146,391 146,391 57,256 58,789 - 101,775 115,716 120,209 - - - - 205,178,971 207,564,618 184,501,125 194,629,899 206,381,946 214,119,802 222,937,925 222,575,034 227,348,490 238,623,299 2,643,929 3,151,868 14,939,327 11,982,196 13,136,901 12,981,464 16,299,993 20,924,224 10,465,668 13,263,837 237,976,991 234,475,249 229,918,722 236,373,284 253,729,941 263,043,817 275,566,524 284,706,583 279,534,119 290,164,949 (57,417,305) (68,345,990) (92,507,675) (91,084,197) (95,658,317) (116,534,259) (91,154,912) (81,216,549) (103,914,977) (93,821,156) 17,798,624 18,770,212 34,260,317 41,656,548 45,641,947 47,928,940 49,534,039 49,822,100 47,576,400 46,504,613 3,517,481 3,846,573 4,952,509 3,371,227 4,551,967 4,006,588 3,525,252 3,502,003 3,825,307 3,809,695 2,353,498 2,715,949 1,935,715 1,624,332 1,356,479 989,470 1,031,960 1,010,109 942,242 1,022,342 15,056,401 12,405,825 18,526,669 25,122,030 21,030,134 21,299,136 17,253,122 15,503,952 16,753,325 17,747,085 1,587,619 1,936,913 3,291,173 1,474,933 5,558,955 5,367,056 4,832,431 3,218,361 3,053,171 1,751,760 - (5,569) (66,147) 19,610 - - - - - - 5,00$578 8,326,140 19,507,815 8,327,670 11,430,359 12,932,121 11,688,662 4,521,606 4,886,259 3,934,721 (6,906) - - - (8,770) - - - - 14,788 45,315,295 47,996,043 82,408,051 81,596,350 89,561,071 92,523,311 87,865,466 77,578,131 77,036,704 74,785,004 $ (12,102,010) $ (20,349,947) $ (10,099,624) $ (9,487,847) $ (6,097,246) $ (24,010,948) $ (3,289,446) $ (3,638,418) $ (26,878,273) $ (19,036,152) ' 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) 148 COUNTY OF BUTTE, CALIFORNIA CHANGES IN NET ASSETS LAST TEN FISCAL YEARS (accrual basis of accounting) For the Fiscal Year Ended June 3Q, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Business-Twe activities: Expenses Sanitation $ 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 $ 5,281,891 Transit 1,796,178 2,192,068 2,243,837 2,528,381 23,907 388,537 - - - - Totalbusiness-Type activities 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 5,281,891 Program Revenues Charges for services: Sanitation 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 6,626,025 Transit 231,793 314,320 199,588 478,840 71,499 - - - - - Operating grants and contributions 1,600,402 2,097,391 2,103,588 1,605,044 465,263 70,717 108,566 83,808 159,913 - Total business-type activities program revenues 5,999,197 6,964,997 6,677,011 7,663,280 7,035,784 6,733,446 6,090,161 6,178,188 6,310,686 6,626,025 Net Expense' (577,836) 3,346,987 (696,353) 470,004 2,331,682 1,941,737 603,913 374,139 1,455,610 1,344,134 General revenues Unrestricted investment earnings 700,798 632,463 522,399 384,442 89,643 701,950 1,004,069 810,774 463,350 196,221 Crain (Loss) on Sale/Disposal of Capital Assets (22,132) - - - (2,528,082) - - - - - Miscellaneous 209,152 18,862 (11,506) 152,947 186,366 - - - - - Transfers - - - - - 8,770 - - - (14,788) Total general revenues 887,818 651,325 510,893 537,389 (2,252,073) 710,720 1,004,069 810,774 463,350 181,433 Change in net assets -business-type activities $ 309,982 $ 3,998,312 $ (185,460) $ 1,007,393 $ 79,609 $ 2,652,457 $ 1,607,982 $ 1,184,913 $ 1,918,960 $ 1,525,567 Primary Government Expenses Governmental activities $ 295,394,296 $ 302,821,239 $ 3~~_ L~~; ~~~~ $ 327,457,481 $ 349,388,258 $379,578,076 $366,721,436 $365,923,132 $ 365,923,133 $ 383,986,105 Business-type activities 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 5,281,891 Total primary government expenses 301,971,329 306,439,249 3„~,7°'1,761 334,650,757 354,092,360 384,369,785 372,207,684 371,727,181 370,778,210 389,267,996 Program Revenues Governmental activities 237,976,991 234,475,249 229,918,722 236,373,284 253,729,941 263,043,817 275,566,524 284,706,583 284,706,583 290,164,949 Business-type activities 5,999,197 6,964,997 6,677,011 7,663,280 7,035,784 6,733,446 6,090,161 6,178,188 6,310,686 6,626,025 Total primary government program revenues 243,976,188 241,440,246 236,595,733 244,036,564 260,765,725 269,777,263 281,656,685 290,884,771 291,017,269 296,790,974 Net Expense Governmental activities (57,417,305) (68,345,990) (92,507,675) (91,084,197) (95,658,317) (116,534,259) (91,154,912) (81,216,549) (81,216,550) (93,821,156) Business-type activities (577,836) 3,346,987 (696,353) 470,004 2,331,682 1,941,737 603,913 374,139 1,455,610 1,344,134 Total primary government net expense (57,995,141) (64,999,003) (93,204,028) (90,614,193) (93,326,635) (114,592,522) (90,550,999) (80,842,410) (79,760,940) (92,477,022) General revenues Governmental activities 45,315,295 47,996,043 82,408,051 81,596,350 89,561,071 92,523,311 87,865,466 77,578,131 77,578,131 74,785,004 Business-type activities 887,818 651,325 510,893 537,389 (2,252,073) 710,720 1,004,069 810,774 463,350 181,433 Total primary government general revenues 46,203,113 48,647,368 82,918,944 82,133,739 87,308,998 93,234,031 88,869,535 78,388,905 78,041,481 74,966,437 Change in net assets Governmental activities (12,102,010) (20,349,947) (10,099,624) (9,487,847) (6,097,246) (24,010,948) (3,289,446) (3,638,418) (3,638,419) (19,036,152) Business-type activities 309,982 3,998,312 (185,460) 1,007,393 79,609 2,652,457 1,607,982 1,184,913 1,918,960 1,525,567 Total primary government cktange in net assets $ (11,792,028) $ (16,351,635) $ (10,285,084) $ ($48Q,454) $ (6,017,637) $ (21,358,491) $ (1,681,464) $ (2,453,505) $ (1,719,459) $ (17,510,585) Source: Auditor-Controller, County of Butte 149 COUNTY OF BUTTE, CALIFORNIA FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accountinel For the Fiscal Year Ended June 3Q, 2003 2004 2005 2006 2007 2008 2009 2010 General Ntind: Reserved for: Encumbrances Imprest cash Prepaid items Deposits with others General reshictions Debt service Inventory Unreserved: Designated Undesigrtated Total general fund balance $ 7,257,572 $ 6,409,889 $ 5,130,723 $ 5,535,099 $ 2,829,192 $ 4,164,873 44,270 44,270 45,145 45,095 45,595 44,095 - 1,100 4,140 15,503 1,138 - 2,500 2,500 2,500 2,500 2,500 2,500 18,132,280 21,069,956 3,165,083 5,196,551 5,586,824 10,611,120 4,656,265 787,644 787,482 792,978 808,994 801,259 $ 2,437,136 $ 2,348,768 44,245 84,345 1,888 1,848 2,500 2,500 11, 560, 087 13, 844, 851 1,127,040 1,572,685 - 154,369 All other Governmerrtal Funds: Reserved for: Encumbrances Imprest cash Prepaid items Deposits with others Long-term loans receivable' Legislative/ Grant reshictions Debt service Inventories Unreserved: Designated, reported in: Special revenue funds Undesigrtated, reported in: Special revenue funds Capital projects funds Total other governmental fund balances General Ntind: Nonspendable Restricted Committed Assigned Unassigned Total general fund All other Governmerrtal Funds: Nonspendable Restricted Unassigned Total other governmental fund Source: Auditor-Controller, County of Butte 2,502,727 2,830,188 24,366,630 19,626,639 3,894,494 91,826 232,510 115,000 16,078,711 8,768,646 10,776,705 15,813,037 16,857,031 10,160,457 9,059,057 16,710,645 $ 48,674,325 $ 39,914,193 $ 44,278,408 $ 47,027,402 $ 30,025,768 $ 25,876,130 $ 24,464,463 $ 34,835,011 $ 7,304,377 $ 5,412,910 $ 4,389,886 $ 2,988,183 $ 10,563,974 $ 17,850,098 $ 11,526,534 $ 10,662,956 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 3,134,461 2,682,411 2,226,168 2,074,395 - - - - 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 7,875,805 119,333 280,034 267,580 310,556 231,586 293,954 273,707 284,270 5,594,935 5,356,679 6,053,130 7,102,915 23,931,864 - 4,558,541 4,460,824 7,339,842 8,004,013 10,816,972 14,336,025 8,439,849 1,249,734 12,604,968 15,206,987 (1,331,347) 501,318 90,015 129,562 220,031 848,587 295,664 551,122 $ 27,324,310 $ 26,525,614 $ 32,638,722 $ 35,577,078 $ 54,323,550 $ 47,730,263 $ 59,633,877 $ 64,986,239 z 2011 2012 $ 122,064 $ 29Q,483 13,842,210 18,714,771 2,628,878 808,712 6,559,485 5,059,485 11,197,976 12,396,380 $ 34,350,613 $ 37,269,831 $ 323,212 $ 364,031 64,521,687 64,470,569 - (1,726,040) $ 64,844,899 $ 63,108,560 Note 1: During the fiscal year 2006-2007, the County changed the way it accounts for loans receivable by offsetting loans receivable with deferred revenue instead of restricted fund balance. Note 2: The County implemented GASB Statement No. 54 under wMch governmental fund balances are reported as nonspendable, restricted, committed, assigned and unassigned compared to reserved and unreserved. 150 COUNTY OF BUTTE, CALIFORNIA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accountinel 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 firtancing sources (uses) SPECIAL ITEM: Payment for unfunded actuarial liability Net change in fund balances Debt service as a percentage of noncapital expenditures Source: Auditor-Controller, County of Butte For the Fiscal Year Ended June 3Q, 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $ 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 $ 51,336,650 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 3,120,393 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 3,233,042 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 1,570,990 224,680,201 223,632,528 221,567,801 217,938,378 231,688,344 240,529,554 248,376,861 256,476,762 258,983,988 269,779,236 20,091,942 22,705,240 22,558,577 23,166,702 22,885,477 26,645,205 27,757,939 29,300,650 34,248,627 30,672,237 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 3,934,721 280,693,834 282,300,872 284,196,490 312,510,969 318,402,433 343,865,019 355,591,442 362,649,180 361,813,401 363,647,269 13,295,361 13,564,592 23,530,072 28,041,583 18,353,948 20,440,643 21,640,700 21,456,259 23,348,016 29,192,387 68,903,950 72,318,779 73,266,989 80,974,652 80,525,118 89,379,218 97,512,700 93,854,161 84,903,509 92,590,332 14,798,252 13,942,349 15,811,238 10,943,957 14,332,609 17,037,110 18,547,425 22,211,130 18,282,672 18,433,994 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 74,748,465 122,398,997 127,320,047 126,018,804 128,551,888 131,916,991 137,501,206 142,597,681 143,751,638 142,735,533 140,936,590 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 3,149,286 4,065,679 629,744 455,878 356,178 540,284 475,794 574,995 538,899 344,806 363,065 - - - 4,160,315 5,562,451 2,854,718 6,774,954 746,483 767,210 765,957 - - - 3,259,717 4,218,911 4,226,524 3,599,724 2,597,561 2,398,702 2,387,171 - - - 162,344 19,300 - - - - - 274,752,940 285,077,870 297,327,353 314,739,278 317,718,642 340,603,577 367,611,795 356,312,993 347,104,978 362,567,247 5,940,894 (2,776,998) (13,130,863) (2,228,309) 683,791 3,261,442 (12,020,353) 6,336,187 14,708,423 1,080,022 26,488 55,949 16,283 184,210 22,973 24,014 463,507 72,392 68,894 169,364 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 7,814,774 (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) (7,492,219) 1,428,917 5,040,019 52,387,282 15,474,418 1,254,300 23,535 123,162 - - 272,915 1,455,405 5,366,049 52,672,036 13,137,733 5,218,320 557,791 1,277,428 361,167 1,218,580 764,834 - - (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 $ 15,927,003 $ 1,844,856 n/a n/a n/a 2.5% 3.1% 2.1% 2.9% 1.0% 0.9% 0.9% Note 1: Debt eervice was ehown ae a eeparate function during fiecal year 2004-05. 151 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 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 9826% 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 9927% 2011 26,239,383 25,884,970 98.65% 941,274 26,826,244 10224% 2012 26,171,085 26,457,017 101.09% 946,894 27,403,911 104.71 Note 1: Includes current year collections of delinquent taxes. Taxes by levy year will be reported when information is available. Note 2: Includes current and teeter collections. 30000000 25000000 20000000 15000000 10000000 5000000 0 0 1i 4 1]61161] 1 l 24,6 119, 2], 121 1]1, ~~,.,.,_,8]4 1.,,.,x],1.,_ - - .,, ]4,.,.,., _.,,15],01] Source: Auditor-Controller, County of Butte 152 COUNTY OF BUTTE, CALIFORNIA ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Secured Utility Unsecured Assessed Year Roll Roll Roll Value 2003 10,940,529,305 18,939,397 622,967,322 11,582,436,024 2004 11,624,793,072 18,939,909 635,629,383 12,279,362,364 2005 12,720,999,330 21,586,369 628,596,023 13,371,181,722 2006 14,047,057,479 21,878,301 671,570,735 14,740,506,515 2007 15,705,066,165 19,279,234 728,715,203 16,453,060,602 2008 17,253,582,073 8,367,262 772,788,613 18,034,737,948 2009 17,826,407,338 7,930,798 836,897,313 18,671,235,449 2010 17,716,534,370 7,930,548 867,980,662 18,592,445,580 2011 17,361,801,601 5,152,377 868,120,034 18,235,074,012 2012 17,015,198,786 4,882,202 915,590,669 17,935,671,657 Note: Total estimated actual value of taxable property was not reasonably estimable. Source: Auditor-Controller, County of Butte 153 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 2003 1.00% 0.000% 0.000% 0.1810% 0.0188% 0.000% 0.0175% 1.250% 0.034% 2.5013% 2004 1.00% 0.000% 0.000% 0.2229% 0.0171% 0.000% 0.0078% 1.250% 0.039% 2.5368% 2005 1.00% 0.000% 0.000% 0.2177% 0.0160% 0.000% 0.0000% 1.250% 0.034% 2.5177% 2006 1.00% 0.000% 0.000% 0.2118% 0.0209% 0.000% 0.0000% 1.250% 0.033% 2.5157% 2007 1.00% 0.000% 0.000% 0.2518% 0.0209% 0.000% 0.0000% 1.020% 0.027% 2.3197% 2008 1.00% 0.000% 0.000% 0.2507% 0.0209% 0.000% 0.0000% 1.020% 0.024% 2.3156% 2009 1.00% 0.000% 0.000% 0.2488% 0.0209% 0.000% 0.0000% 1.020% 0.022% 2.3117% 2010 1.00% 0.000% 0.000% 0.3109% 0.0209% 0.000% 0.0000% 1.020% 0.026% 2.3778% 2011 1.00% 0.000% 0.000% 0.2974% 0.0209% 0.000% 0.0000% 1.150% 0.024% 2.4923% 2012 1.00% 0.000% 0.000% 0.3109% 0.0209% 0.000% 0.0000% 1.250% 0.028% 2.6098% 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 July 1, 1978, and that each County will levy 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 _ ,, 1 ~, , w;~ 0.6000% 0.4000% 0.2000% 0.0000% 2003 ®City of CMco ®City of Oroville O Schools O Butte College ^Butte County Schools ®Richvale Sewer ®Lake Madrone OParadise Irrigation District Source: Auditor-Controller, County of Butts 154 2005 2007 2009 2011 COUNTY OF BUTTE, CALIFORNIA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND PRIOR YEAR Taxpayer Pacific Gas and Electric Corporation Wild Goose Storage, Inc. Pacific Bell California Chico Mall Partners LP California Water Service Chico Crossroads LP Farmland Reserve, Inc. Pacific Realty Associates Union Pacific Railroad Pacific Coast Producers North Valley Mall LLC Pan Pacific Development LLC Sprint Communications Co. Western Investment Real Estate Trust Largest Secured Property Valuation Other Secured Taxpayers Total Secured Property Valuation -net of exemptions 2012 Zoos (1) Percentage Percentage Assessed of Total Assessed of Total Rank Valuation Assessed Rank Valuation Assessed 1 $ 491,814,588 2.939% 2 221,731,818 1.325% 3 61,177,859 0.366% 4 45,511,700 0.272% 5 41,019,831 0.245% 6 32,375,000 0.193% 7 32,170,889 0.192% 8 31,688,433 0.189% 9 27,240,107 0.163% 10 27,005,017 0.161% 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% 9 23,425,271 0.175% 6 24,011,550 0.180% 7 24,002,189 0.180% 8 23,695,716 0.177% 10 19,262,765 0.144% 1,011,735,242 6.045% 15,721,105,589 $ 16,732,840,831 676,549,769 5.061% 12,694,631,953 $ 13,371,181,722 Note 1: In accordance with GASB Statement No. 44, the following table presents information for the County's principal taxpayers as of June 30, 2012 and should also be presented for June 30, 2003. However, June 30, 2003 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 155 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 Margin (4) Debt Limit 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 18,592,445,580 232,405,570 - 232,405,570 100% 2011 18,235,074,012 227,938,425 - 227,938,425 100% 2012 17,935,671,657 224,195,896 - 224,195,896 100% 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. zo,ooo,ooo,ooo is,ooo,ooo,ooo io,ooo,ooo,ooo s,ooo,ooo,ooo ~~~ zoii ®Total Assessed Valuation (1) ®Legal Debt Margin (4) Source: Auditor-Controller, County of Butte 156 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 Debt Ratio of Net Gross Payable from Net Bonded Bonded Fiscal County Assessed Bonded Enterprise Net Debt to Debt per Year Population (1) Value Debt Revenue Debt Assessed Value Capita 2003 210,800 11,582,436,024 0.000% 2004 212,237 12,279,362,364 0.000% 2005 214,119 13,371,181,722 0.000% 2006 217,209 14,740,506,515 0.000% 2007 218,069 16,453,060,602 0.000% 2008 220,407 18,034,737,948 0.000% 2009 220,748 18,671,235,449 0.000% 2010 221,331 18,592,445,580 0.000% 2011 221,388 18,235,074,012 0.000% 2012 221,273 17,935,671,657 0.000% Source: (1) State of California, Department of Finance xxx/ epg~pv~Osf t f bsdi Oef n hp sbai i dOsf ~~sut Of t ui nbuf t Of 20vti f x/ ai a Source: Auditor-Controller, County of Butte 157 COUNTY OF BUTTE, CALIFORNIA RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (In Thousands, except Per Capita) Governmental Activities Business-type Activi ties 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 2003 1,052 9,345 2,366 2,258 15,021 0.1223% 030% 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% 124% 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 69,486 03854% 0.98% 315 2009 50,492 2,300 2,494 1,029 350 12,025 20 68,710 03680% 1.02% 311 2010 50,403 1,945 2,278 922 300 11,300 20 67,167 03613% 0.94% 303 2011 49,895 2,439 2,053 848 250 10,550 - 66,035 03621% 0.88% 298 2012 49,895 2,237 1,819 791 200 9,770 - 64,712 03608% 0.85% 292 Source: Auditor-Controller, County of Butte 158 COUNTY OF BUTTE, CALIFORNIA OVERLAPPING BONDED DEBT JUNE 30, 2012 2011-12 Assessed Valuation: $18,716,515,062 (includes unitary utility valuation) Redevelopment Incremental Valuation: 3,143,182,033 Adjusted Assessed Valuation: $15,573,333,029 Total Debt County's Share of OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/12 % Applicable (11 Debt 6/30/12 Butte-Glenn Community College District $ 75,763,079 85.769% $ 64,981,235 Yuba Joint Community College District 127,102,120 0.189 240,223 Chico Unified School District 50,510,000 100. 50,510,000 Marysville Joint Unified School District 68,763,777 1.324 910,432 Oroville Union High School District 19,421,385 100. 19,421,385 Manzanita School District 680,000 100. 680,000 Oroville School District 4,186,411 100. 4,186,411 Thermalito Union School District 1,834,445 100. 1,834,445 City 1915 Act Bonds 195,000 100. 195,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $142,959,131 Ratios to 2011-12 Assessed Valuation: Total Overlapping Tax and Assessment Debt ...................................0.76% DIRECT AND OVERLAPPING GENERAL FUND DEBT: Butte County Certificates of Participation $12,063,000 100. % $12,063,000 Butte County Pension Obligations 49,895,000 100. 49,895,000 Butte-Glenn Community College District General Fund Obligations 2,690,000 85.769 2,307,186 Yuba Joint Community College District General Fund Obligations 21,025,247 0.189 39,738 Chico Unified School District Certificates of Participation 1,460,000 100. 1,460,000 Paradise Unified School District Certificates of Participation 1,115,000 100. 1,115,000 Biggs Unified School District Certificates of Participation 420,000 100. 420,000 City of Oroville Pension Obligations 6,355,000 100. 6,355,000 City of Paradise Pension Obligations 9,009,980 100. 9,009,980 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $82,664,904 TOTAL DIRECT DEBT TOTAL OVERLAPPING DEBT COMBINED TOTAL DEBT $61,958,000 $163,666,035 $225,624,035 (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 Adjusted Assessed Valuation: Total Direct Debt ($61,958,000) ....................................................0.40% Combined Total Debt ........................................................................1.45% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/12: $0 Source: California Municipal Statistics, Inc. 159 COUNTY OF BUTTE, CALIFORNIA RATIO OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General Obligation Bonds $ 1,051,620 $ 50,878,665 $ 57,070,000 $ 57,212,322 $ 56,423,916 $ 50,575,340 $ 50,491,664 $ 50,402,721 $ 49,895,000 $ 49,895,000 LCSS: Amounts Available in Debt .S'erVlce FUnd (1) - - 20,839,083 7,257,602 8,536,527 5,385,967 7,805,458 7,732,755 8,788,635 8,802,439 Total Net Obligation Bonds Outstanding $ 1,051,620 $ 50,878,665 $ 36,230,917 $ 49,954,720 $ 47,887,389 $ 45,189,373 $ 42,686,206 $ 42,669,966 $ 41,106,365 $ 41,092,561 Percentage of Estimated Actual Taxable Value of Property 0.0% 0.4% 0.27% 0.34% 0.29% 0.25% 0.23% 0.23% 0.23% 0.23% Per Capita $ 5.0 $ 237.6 $ 166.8 $ 230.0 $ 219.6 $ 205.0 $ 193.4 $ 192.8 $ 185.7 $ 185.7 Note 1: Debt Service was not a separate fund prior to 2005. Note 2: Details regarding the county's outstanding debt can be found in the notes to the financial statements. Source: Auditor-Controller, County of Butte 160 COUNTY OF BUTTE, CALIFORNIA DEMOGRAPHICS AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Per Capita Fiscal Personal Personal School Year Population (1) Income (2) Income (2) Enrollment (3) 2003 212,237 5,025,193,000 23,677 34,260 2004 214,119 5,393,454,000 25,189 33,768 2005 217,209 5,811,000,000 26,753 33,385 2006 217,209 6,099,731,000 28,082 33,192 2007 218,069 6,494,706,000 29,783 32,827 2008 220,407 7,100,740,000 32,216 32,559 2009 220,748 6,752,580,000 30,590 32,069 2010 221,331 7,163,944,000 32,368 31,539 2011 221,388 7,500,846,828 33,881 31,226 2012 221,273 7,643,654,512 34,544 31,255 Detail of estimated population, as June, 2012: Incorporated Cities/Towns: City of Biggs 1,707 City of Chico 87,713 City of Gridley 6,584 City of Oroville 15,546 Town of Paradise 27,373 Total of incorporated 138,923 Total of unincorporated 82,350 Total Population 221,273 Unemployment Rate (1) 7.4% 7.2% 6.7% 4.9% 6.1% 8.2% 13.2% 13.1% 13.1% 12.6% Note: Personal income and per capita income are based on the calendar year information ending during the fiscal year. 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) California Dept. of Education (http://dq.cde.ca.gov/dataquest/Enrollment) 161 COUNTY OF BUTTE, CALIFORNIA MISCELLANEOUS STATISTICAL INFORMATION JUNE 30, 2012 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: 1,665 square miles County Seat: Oroville, California Date of Incorporation: February 18, 1850 Form of Government: General Law County, governed by afive-member Board of Supervisors Fiscal Year Begins: July 1 County Employees: as of June 30, 2012: 2,154 Employment Distribution (2011 Annual Average)(1): Agriculture 3.7% Information 1.4% Other Services 4.9% Leisure and Hospitality 9.6% Educational and Healtb Services 19.7% Government 22.1 Professional & Business Services 7.6% Financial Activities 4.2% Trade, Transportation, & Utilities 17.4% Manufacturing 5.6% Natural Resources, Mining, & Construction Natural Resowces, Nlinivg, Man~fact~nvg Covsn~rnov 4% 3.8% & gq~Nlnue Lifrnmati on 4% ~% 162 COUNTY OF BUTTE, CALIFORNIA PRINCIPAL EMPLOYERS JUNE 30, 2012 and Ten Years Ago Major County Employers 2012 2003 Percentage Percentage of Total County of Total County Company Employees Rank Employment Employees Rank Employment Enloe Medical Center, Inc. 2,2'75 1 2.55% n/a n/a n/a Butte County 2,154 2 2.42% n/a n/a n/a California State University, Chico 1,834 3 2.06% n/a n/a n/a Butte Glenn Community College 1,500 4 1.68% n/a n/a n/a Chico Unified School District 1,400 5 1.57% n/a n/a n/a Pacific Coast Producers 1,250 6 1.40% n/a n/a n/a Oroville Hospital 1,233 7 1.38% n/a n/a n/a Feather River Hospital 1,160 8 1.30% n/a n/a n/a Associated Students California 600 9 0.67% n/a n/a n/a Butte County Office of Education 600 10 0.67% n/a n/a n/a Total 14,006 15.72% Note: June 30, 2003 complete information is not available. Source: xxx/ rrbcpsnbsl f uJ4ao/fee/ db/ hpv~Onbk sf s0 pvouznbkpsf s/ bt a Individual company websites 163 COUNTY OF BUTTE, CALIFORNIA OPERATING INDICATORS BY FUNCTION LAST NINE FISCAL YEARS For the Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 2009 2010 2011 2012 Function/Program Sheriff Number of Bookings 11,356 12,964 13,543 13,920 12,693 14,241 13,487 12,792 13,285 Coroner Case Load 1,588 1,618 1,701 1,709 1,632 1,677 1,734 1,606 1,656 Calls for Services -Unincorporated Areas 45,536 43,585 43,261 56,131 64,121 63,871 63,787 60,499 58,843 Fire Medical Assistance 13,383 13,964 13,240 8,287 8,101 8,021 11,941 12,054 12,511 Fires Extinguished 905 884 740 753 1,311 1,089 2,169 2,022 2,311 Probation Juveniles in Detention Facilities (bed days) 22,354 19,967 20,987 21,484 19,242 17,949 17,564 17,789 17,593 Waste Management Landfill Tonnage 209,466 202,189 191,676 196,153 192,073 163,370 152,257 152,822 154,531 Recycling Tonnage 22,762 20,186 13,640 26,484 23,377 19,390 13,768 12,420 12,094 County Library Total Circulation 653,985 662,590 723,178 744,881 826,821 910,249 840,078 918,069 963,052 Reference Questions Answered 49,276 41,672 37,703 36,948 38,546 42,366 27,449 32,526 39,798 Patrons 97,023 106,696 96,049 90,702 93,616 94,574 79,326 74,057 80,135 Programs Offered 1,106 975 1,169 1,019 1,214 1,353 1,415 1,377 1,510 Program Attendance 20,788 18,917 22,510 23,439 30,916 34,764 28,395 32,943 36,751 Visitor Count 581,194 628,430 662,302 656,949 723,460 756,901 642,112 640,096 672,851 Clerk-Recorder Official Records Recorded 87,054 77,545 74,963 77,497 61,002 51,388 52,738 52,863 53,996 Vital Records Copies Issued 12,201 12,813 13,179 13,903 13,629 13,689 12,430 12,393 11,771 Official Records Copies Issued 6,942 7,319 6,665 6,442 6,172 5,408 4,272 5,431 5,161 Community Health Agency Facilities Inspections N/A 3,200 4,015 4,905 5,577 5,276 5,714 5,704 4,905 Public Social Services Ca1WORKS Clients 134,259 122,799 115,616 121,734 105,953 103,947 102,663 103,267 101,884 Food Stamp Clients 167,912 206,012 209,550 221,324 228,513 251,732 290,417 311,695 339,557 Medi-Cal Clients 119,660 152,590 148,090 144,901 159,384 157,048 169,544 245,592 230,464 In-Home Support Services 32,355 33,044 30,927 36,416 35,951 37,593 36,322 33,376 33,660 Foster Care Placements 9,682 9,166 8,859 8,343 8,417 7,542 7,065 5,812 5,070 Child Welfare Services 11,850 12,193 12,019 11,130 12,282 11,237 10,150 9,800 8,936 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 164 COUNTY OF BUTTE, CALIFORNIA CAPITAL ASSET STATISTICS BY FUNCTION LAST NINE FISCAL YEARS For the Fiscal Year Ended June 30, Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sheriff Patrol Stations 4 4 4 4 4 4 4 4 4 Patrol Vehicles 65 65 65 60 60 50 50 61 82 Fire Stations 26 26 26 26 26 26 26 26 26 Trucks 38 40 40 40 40 40 40 40 40 Waste Management Landfills 1 1 1 1 1 1 1 1 1 Capacity in Tons 13,141,300 12,608,230 12,427,121 12,257,452 12,088,756 11,931,691 11,793,202 11,652,343 11,509,906 County Libraries Branch Libraries 6 6 6 6 6 6 6 6 6 Book Mobiles 1 1 1 1 1 1 1 1 1 Books in Collection 284,355 296,795 299,262 309,681 306,155 321,799 302,828 243,280 256,893 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 165 COUNTY OF BUTTE, CALIFORNIA FULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION/ PROGRAM LAST SEVEN FISCAL YEARS Full-time Equivalent Employees 2006 2007 2008 2009 2010 2011 2012 Function/Program General government: Legislative and Administrative 28 24 35 35 38 39 38 Finance 30 35 19 16 20 20 22 Purchasing 3 4 6 6 6 6 6 Treasurer 28 24 26 28 30 27 24 Assessor 44 44 44 38 39 39 41 Human Resources 12 13 22 17 18 18 19 County Counsel 12 12 9 9 9 9 9 Elections 14 8 13 10 10 9 10 Development Services 44 45 42 40 40 40 39 Recorder 17 17 15 12 11 13 12 Other General 11 11 14 50 50 44 47 Public Protection: Judicial 97 97 104 118 115 109 106 Police Protection 167 163 175 163 175 176 161 Detention and Correction 167 159 168 191 176 158 155 Fire Protection 3 - 4 5 4 3 5 Probation 92 102 105 94 93 93 92 Water Services 5 5 4 4 4 3 3 Other Protection 7 8 7 6 6 4 4 Public ways and Facilities: Public ways 106 117 106 103 100 101 100 Health and Sanitation: Health 571 565 591 579 566 555 497 Agriculture 22 19 24 24 28 23 22 Public Assistance: Aid Programs 555 565 557 514 521 555 551 Veterans Services 1 2 3 3 3 2 2 Other Assistance 111 122 101 107 109 111 109 Education: Library Services 54 56 58 43 43 43 32 Farm Advisor 3 3 3 3 4 3 2 County Business-type Functions Landfill 25 25 23 21 20 23 22 Internal Service Funds 66 67 67 24 24 24 24 Totals 2,295 2,312 2,345 2,263 2,262 2,250 2,154 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 166 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 parkicular 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. ASSIGNED FUND BALANCE, Amounts that are constrained by the County's intent to be used for specific purposes. The intent can be established at either the highest level of decision making, or by a body or an official designated for that purpose. This is also the classification for residual funds in the County's special revenue funds. 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 timing 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. 167 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report 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. CAPTTAL 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). 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. COMMITTED FUND BALANCE, Amounts that can only be used for specific purposes determined by formal action of the County's highest level of decision-making authority (the Board of Supervisors) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. 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 unit's 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 government's investment in a single issuer. CONTINGENT LIABILTTY. 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 may be remote. CREDIT RISK The risk that an issuer or counter-party to an investment will not fulfill its obligations 168 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report 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 fmancial 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. 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 fmancial 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. 169 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report EXCFIANGE-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 fmancial 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 fmancial 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 a forced 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 prepaids (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 EXCFIANGE 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. 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. 170 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report 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 fmancial 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 fmancial 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 a cost- reimbursementbasis. 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. 171 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report 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. 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 may be 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 fmancial 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. NONSPENDABLE FUND BALANCE, Amounts that cannot be spent because they are either (a) not spendable in form or (b) legally or contractually required to be maintained intact. 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, 172 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report 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 oftax-exempt debt. A requirement to remit to the federal government interest revenue in excess of interest costs when the proceeds from the sale oftax-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 fmancial 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. 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 Organizations. 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, fue protection districts, transit authorities, port authorities and electric power authorities. 173 COUNTY OF BUTTE Glossary for the Comprehensive Annual Financial Report 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. UNASSIGNED FUND BALANCE, The residual classification for the County's General fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes. 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. 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. 174