Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 THIS PAGE BLANK Coconino County Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 COCONINO COUNTY BOARD OF SUPERVISORS Art Babbott District 1 Vice Chair Elizabeth C. Archuleta District 2 Mandy Metzger District 4 Chairperson Matthew G. Ryan District 3 Lena Fowler District 5 Cynthia Seelhammer County Manager Larry Dannenfeldt Deputy County Manager MikeTownsend Deputy County Manager Finance Team Bonny Lynn, MPA, Chief Financial Officer Thomas Johnson, CPA, Accounting Manager Nancy Ho, MBA, Senior Accountant Chyenne Schmidt, Senior Accountant Marsha Westling, Accountant www.coconino.az.gov THIS PAGE BLANK Coconino County Table of Contents Year Ended June 30, 2015 Introductory Section Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Organization Chart Coconino County officials Page 3 12 13 14 Financial Section Independent Auditors' Report 17 Management’s Discussion and Analysis (MD&A) 21 Basic Financial Statements Government-Wide Statements Statement of Net Position Statement of Activities 39 41 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities 42 45 46 48 Proprietary Fund Financial Statements Statement of Net Position Statement of Revenues, Expenses, and Changes in Fund Net Position Statement of Cash Flows 49 50 51 Fiduciary Funds Financial Statements Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position 52 53 55 Notes to Financial Statements Required Supplementary Information Budgetary Comparison Schedules - General Fund and Major Special Revenue Fund General Fund Public Works/HURF Fund Jail District Fund Public Health Services District Fund Flood Control District Fund i 106 108 109 110 111 Coconino County Table of Contents Year Ended June 30, 2015 Financial Section (Continued) Page 112 Notes to Budgetary Comparison Schedules Schedule of the County’s Proportionate Share of the Net Pension Liability – Cost-Sharing Pension Plans 113 Schedule of Changes in the County’s Net Pension Liability and Related Ratios – Agent Pension Plans 114 Schedule of County Pension Contributions 116 Notes to Pension Plan Schedules 118 Schedule of Agent Retirement Plan’s and Coconino County Postemployment Healthcare Plan’s Funding Progress 119 Notes to Schedule of Agent Retirement Plan’s and Coconino County Postemployment Healthcare Plan’s Funding Progress 120 Combining and Individual Fund Statements and Schedules List of Nonmajor Governmental Funds Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 123 126 134 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Revenue Funds Adult Probation Grants and Fees Assessor Storage and Retrieval Career Center Grants Clerk of the Superior Court Grants and Fees Community Services Grants and Fees Conciliation Court County Attorney Grants and Fees County Improvement Districts-Special Revenue County Library District Emergency Services Grants Inmate Welfare Jail Enhancement Justice Courts Grants and Fees Juvenile Court Grants and Fees Legal Defender Grants and Fees National Forest Fees ii 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Coconino County Table of Contents Year Ended June 30, 2015 Financial Section (Continued) Special Revenue Funds (Continued) Parks and Recreation Grants and Fees Public Defender Grants and Fees Recorder Storage and Retrieval School Superintendent Grants and Fees Sheriff Grants and Fees Solid Waste Superior Court Grants and Fees Taxpayer Information Fund Other Special Revenue Funds Page 158 159 160 161 162 163 164 165 166 Debt Service Fund County Improvement Districts – Debt Service 167 Capital Project Funds Parks and Open Spaces Tax Projects Fund Accommodation School County Improvement Districts - Capital Projects Other Capital Projects Funds 168 169 170 171 Investment Trust Funds Combining Statement of Fiduciary Net Position – Investment Trust Funds Combining Statement of Changes in Fiduciary Net Position – Investment Trust Funds Agency Fund Statement of Changes in Assets and Liabilities – Agency Fund 172 173 174 Statistical Section Financial Trends Net Position by Component Changes in Net Position Fund Balances - Governmental Funds Changes in Fund Balances – Governmental Funds 179 180 182 183 Revenue Capacity Assessed Value and Estimated Market Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Property Tax Payers Property Tax Levies and Collections 184 185 186 187 iii Coconino County Table of Contents Year Ended June 30, 2015 Statistical Section (Continued) Page Debt Capacity Ratios of Outstanding Debt By Type Legal Debt Margin Pledged Revenue Coverage 188 189 190 Demographic and Economic Information Demographic and Economic Statistics Principal Employers 191 193 Operating Information Full-Time Equivalent Employees By Function Operating Indicators By Function/Program Capital Asset and Infrastructure Statistics By Function 194 196 198 iv INTRODUCTORY SECTION 1 THIS PAGE BLANK 2 3 the finances of the County. Consequently, management assumes full responsibility for the completeness and reliability of the information contained in this report. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Coconino County Profile Coconino County was established on February 19, 1891 by the 16th Territorial Assembly with an initial population count of 4,000. The County encompasses approximately 18,617 square miles – it is the largest county in Arizona and the second largest in the United States. Despite its size, Coconino County is one of the most sparsely populated counties in Arizona with a population of 7.3 per square mile (2010 Census). Only 12% of the County’s total square miles are private property. The remainder is a combination of state, federal and reservation land. The estimated 2015 population of Coconino County is 135,695. Flagstaff is the County seat and the largest city in the County. The County is home to the Grand Canyon, four other federal recreation areas and three state parks. The County is also home to reservation land belonging to the Navajo, Hopi, Havasupai, Hualapai and Paiute tribes. Coconino County’s government consists of an elected Board of Supervisors (Board). There are five districts, each represented by a Supervisor who resides in the district. The Board holds the policy-making and legislative authority for the County. It is responsible for the overall management and approval of all departmental budgets and tax rates. The Board appoints a County Manager who serves as the Chief Administrative Officer for the County. Departments are either headed by an appointed official, appointed by the Board, or an elected official. Elected offices are statutorily determined and include the Sheriff, County Attorney, Recorder, Treasurer, Assessor, Superintendent of Schools, Constable, Clerk of the Superior Court, and the Judiciary. Coconino County provides a full range of services including law enforcement and public safety, health services, sanitation, welfare programs, highway construction and maintenance, parks and recreation, and education. The financial reporting entity includes all the funds of the primary government. Component units are legally separate entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the County’s operations. Additional information can be found in the notes to the financial statements (See Note 1.A.). The Board and the County Manager use a ten-year financial plan, along with fiscal management policies, budget management policies, and strategic goals and priorities to guide the overall development and management of the budget. Annually, departments are required to provide revenue and expenditure estimates for the current fiscal year and planned operations for the following year. These estimates are used to update the ten-year financial plan. Departments submit their budgets which are evaluated using criteria and strategies adopted by the Board of Supervisors and budget recommendations are based on these evaluations. Final budget decisions are also subject to the availability of funds within the context of the ten-year financial 4 plans; conformance with fiscal and budget management policies; and meeting the County’s strategic goals and priorities. The final budget must be adopted by the Board on or before the third Monday in July. The tax rate and levy must be set on or before the third Monday in August each year. The level of budgetary control is at the department level within a fund. Transfers between these levels must be approved by the Board. Additionally, actual expenditures may legally not exceed the final budget. Assessing Coconino County’s Economic Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the County operates. Economic Outlook. As reported by the Arizona Department of Administration Employment Forecast, released in February, 2015, the Office of Employment and Population Statistics within the Arizona Department of Administration is forecasting gradual gains in non-farm employment in Arizona for the 2015-2016 time period. An over-the-year gain of 56,600 non-farm job is expected in 2015 and 63,100 in 2016, representing growth of 2.2 percent in 2015 and 2.4 percent in 2016 across the State of Arizona. The overall employment situation in Arizona continues to improve. This is consistent with improvement seen in many economic indicators including population growth. While the U.S. has recovered all the jobs shed since the prerecession peak, Arizona has recovered approximately 73.9 percent of jobs lost as of December, 2014. The recovery is expected to continue in Arizona. All eleven major sectors are expected to grow in 2015 and 2016. There are several factors supporting Arizona’s economic growth, including continued improvement in real Gross Domestic Product (GDP), real personal income, employment, and retail sales. There is a continuation of private sector employment gains. Governmental revenues are not growing at the rate of the private sector. This will challenge local governments in planning for adequate compensation levels to compete for experienced staff and to plan for implementing deferred capital needs in the areas of technology and facilities capital repair and replacement. In addition, retirement contributions have continued to grow at an accelerated rate prior to, and after the recent recession. The changes implemented over many years to the Arizona State Retirement System resulted in slowing the growth of contribution requirements and in the next few years rates may begin to decline. The area of concern that has had the largest growth of unfunded liabilities and contribution requirements is the Public Safety Personnel Retirement System (PSPRS). Impact of State Economic Condition. Although the County’s sound long-term financial planning considered and included a recessionary growth model based on prior recessions, the depth and breadth of the most recent economic downturn to both the State and local economies continues to impact County revenues. The County anticipates potential reduced and reallocated State and Federal Highways and Streets revenues, shifts in mandated State costs to counties, and further cuts to County funding for Public Safety, Courts, Health and Social Services programs. This causes continued uncertainty for Counties across the state and into the foreseeable future. The County will continue to work with the Governor, State Legislators, County Supervisors Association and the Arizona Association of Counties to find solutions to 5 state cost shifts to counties. In addition to these efforts, the County is actively pursuing solutions to decrease reliance on state controlled revenues and to increase locally controlled sources. Additional details are included in Management’s Discussion and Analysis (MD&A) under “Economic Factors and Next Year’s Budget” which can be found in the Financial section of the CAFR. Local economy. The economy of Coconino County is based primarily on public administration, the service industry, wholesale and retail trade, and tourism. The City of Flagstaff (the County seat) is the center of educational, governmental and scientific employment. The list of major employers experienced a change during fiscal year 2015. The Walgreens Distribution Center, which employed 400 highly compensated people closed in April 2015. A new addition to the list is the Twin Arrows Navajo Casino and Resort which employs 700. The list of major employers include; Northern Arizona University, Flagstaff Medical Center, W.L. Gore and Associates, Flagstaff Unified School District, Coconino County, City of Flagstaff, Twin Arrows Navajo Casino and Resort, Walmart, Grand Canyon Railway, SCA Tissue, Coconino Community College, the U.S. Forest Service, the U.S. National Park Service, the Navajo Nation, and Nestle-Purina. Tourism significantly impacts the local economy. Old Route 66 runs across most of the County as well as US Interstate 40. Attractions include National Parks, National Monuments and State Parks, some of which are: the Grand Canyon, Sedona/Oak Creek Canyon, Glen Canyon National Recreation Area, Wupatki National Monument, Sunset Crater National Monument, Walnut Canyon National Monument, and Slide Rock State Park. Over 9.5 million people visited these attractions in FY15. Strategic Budget Process and Financial Planning. The County has had a comprehensive longterm financial planning process in place since fiscal year (FY) 2007. In FY15 the County continued to expand on the Strategic Budget Process begun in FY10. The goal of the process is to provide consistent delivery of essential services to its residents in times of economic growth or recession, and to identify opportunities for cost containment through prevention efforts. Keys to this process are; 1) a ten-year financial plan, 2) aligning high probability revenue types with mission critical expenditures, 3) balancing recurring expenditures with recurring revenue, 4) building prudent reserves, 5) planning the budget to include employee compensation, facilities R & R, and IT, 6) continued development of the Strategic Budgeting Process, and 7) development of new revenue sources. The County, as a member of the Northern Arizona Public Employee Benefit Trust (NAPEBT), has successfully achieved lower than average growth in health insurance costs over the past several years. Through becoming a self-funded trust and implementing a wellness program, claims experience has stayed well below national averages. Budget Management Policy  The Board uses the approved County fiscal policies and strategic priorities to guide the County’s budget process. Decisions are evaluated within these contexts as well as the accompanying ten-year financial plan. 6  During the budget process, departments are asked to develop and evaluate a line item budget for both revenues and expenditures and present program performance measures and outcomes. Funding for all County programs is submitted to the Budget Team and County Manager, for a recommendation to the Board of Supervisors for approval of funding. Requests for increases to program funding must demonstrate the estimated return on investment, efficiency, or be clearly tied to a specific strategic priority outcome indicator, as adopted by the Board of Supervisors.  All requested funding increases should be tied to the outcomes of the adopted Strategic Priority Areas and will be evaluated for funding based on criteria adopted by the Board of Supervisors. Coconino County’s fiscal policies promote long-term stability, provide perspective to the financial picture of the County in its entirety rather than single issues, link long-term financial planning to day-to-day operations, and provide a framework for the Board of Supervisors and the citizens for measuring the fiscal impact of government services against established fiscal parameters. The fiscal policies include: Operating Budget Policies. The operating budget is a plan for allocating resources. Capital Budget Policies. The capital budget provides resources for capital maintenance and future capital needs, without adversely affecting the operating budget. Revenue Policies. Funding for public programs should be derived from a fair, equitable and adequate resource base, while minimizing tax differential burdens. Reserve Policies. Responsible reserve policies will provide adequate resources for cash flow and contingency purposes, while maintaining reasonable tax rates. The County maintains a contingency for cash liquidity and as an emergency contingency in the County General Fund equal to at least 10% of its annual revenue budget. The County also maintains a revenue smoothing reserve of 5% of its annual revenue budget. These funds should only be utilized to cover short-term drops in County revenues to maintain service levels in difficult economic times. Debt Policies. Responsible debt management policy maintains the County’s ability to incur present and future debt at minimal interest rates in amounts needed for infrastructure and economic development without endangering its ability to finance essential County services. Major Initiatives/Impacts Schultz Fire and Flood In late June 2010, the Schultz Fire burned approximately 15,000 acres on steep mountain slopes in the County. The annual monsoon season started one week later and the County began to experience catastrophic flooding in an unincorporated residential area east of Flagstaff. Significant risk to public safety and health existed with over 1,500 properties affected and by the end of FY11 over $5 million was spent on response and mitigation efforts. Full-time staff identified and applied for funding and managed the mitigation efforts. These efforts have secured over $20 million in Federal and State funding to date. We estimate there will be 7 flooding concerns for the next 10 years. The mitigation investments constructed and future projects planned will protect life and property in the area and reduce the costs of County staff to maintain and repair infrastructure in the flood area. Over $8 million was expended in fiscal year 2015; of that amount $2.8 million was in state and federal grants. Final mitigation projects were completed in the summer of 2015. Slide Fire and Flood On May 20, 2014, the Slide Fire began in Oak Creek Canyon, north of Slide Rock State Park along State Route 89A north of Sedona. The fire charred more than 21,000 acres and has created the potential for severe flooding within Oak Creek and West Fork Canyons and several smaller drainages. County Public Works Department and its partner, Natural Resources Conservation Service performed many pre-flood mitigation projects beginning as soon as the fire was extinguished. County Emergency Management and the Sheriff’s Department responded to multiple flood emergency incidents in FY15. Road Maintenance Sales Tax (Proposition 403) Revenue reductions from HURF funds and lack of federal dollars for highway and road improvements left the Board of Supervisors with few options to address seriously deteriorating roads. County residents were involved in a Citizens Road Advisory Committee, which came out of their deliberations with a recommendation to the Board of Supervisors that a ballot measure was the best option. Coconino County led a successful educational campaign, over a six month period, leading up to the November 2014 election to ask the voters of the county to approve Prop 403, a 3/10th of a cent sales tax dedicated to maintenance of the county road system. The voters approved the ballot measure by a good margin. The 3/10th of a cent sales tax went into effect on January 1, 2015. The tax will be in effect for 20 years. Repair and Replacement (R&R) and Strategic Capital Planning The County maintains a Facilities Repair and Replacement Fund for the routine maintenance of County facilities. This fund is used for carpet replacement, HVAC repairs and replacements, painting, window replacements, and many other projects. Facilities staff has a planned ten-year schedule of projects and the financial plan includes maintaining funding for a minimum of four years of projects. Four years of funding will allow the County to continue investing in our assets during the average two-year economic downturn and through a two-year recovery period. This four-year funding target was funded as part of the FY15 budget. The County also has a strategic plan for our Information Technology department that we hope to begin implementing in the near future. Legislative Impacts Legislation was introduced and passed at the State level, in FY14, reestablishing the County Assistance Fund which provides lottery revenues to the counties. Coconino County received additional revenue of $550,038 in FY15. This funding is subject to loss through further legislative action. In FY15 the Legislature passed a measure which eliminated County Assistance Funding from 3 additional counties, and Coconino County is in the next level of counties which could see elimination of funding. 8 Legislation was passed at the State level, in FY15, which requires all counties to provide funds to support the operations of the Arizona Department of Revenue and Arizona Juvenile Corrections Department. This impact will be realized and reported in FY16. Compensation plan The Board of Supervisors approved a 1.5% compression adjustment in FY15, which was implemented in FY16, in addition to budgeted funding of a 2.5% merit increase for County staff. Coconino County continued innovative one-time monetary and non-monetary compensation programs, such as, the Personal Day Purchase Program (a type of voluntary furlough), as well as a Vacation Sell Back Program. Wellness program Coconino County, as a partner of the Northern Arizona Public Employees Benefit Trust, implemented the Wellness Incentive Program in FY13 and continued to expand and grow the program with much success in FY15. The program provides a monetary incentive to encourage employees to participate in a proactive health screening assessment and to live healthy lifestyles. The results are healthy employees that lead more fulfilling lives and a reduction in targeted catastrophic illnesses that drive health claims experience, which keep overall health care costs lower. The next major initiative for NAPEBT is to pursue an “Onsite” Clinic, which will provide more efficient health care for NAPEBT employees, reduce time away from work, provide access to primary care at reduced co-pays with extended hours and incorporates wellness and chronic disease management. Criminal Justice Coordinating Council (CJCC) The purpose of the CJCC is to study the criminal justice systems in the region, review opportunities to collaborate, identify areas for improvement and formulate policy, plans and programs for change to create efficiencies within our criminal justice system. Its mission is to communicate and present planning, financial, operational, managerial, and programmatic recommendations to the agencies represented on the Council. The Council is committed to providing the coordinated leadership necessary to establish cohesive public policies which are based on research, evaluation and monitoring of policy decisions and program implementations. There are currently nineteen members of the council from multiple jurisdictions within the region. The consensus of these members is required for decisions and recommendations. The direction and mission of the CJCC has been clear and the partners are motivated to make improvements to the system. The CJCC has developed a system performance tool to identify changes to performance criteria. This helps to identify changes early in the process in order to analyze and understand what impacts occur throughout the system. In addition, the County’s Chief Health Officer was added to the Executive Committee as the impacts for those dealing with behavioral health problems are having an increasing impact on criminal justice systems in Coconino County and across the country. Other Initiatives Coconino County completed intergovernmental agreements with municipalities for Court Services in Tusayan and Williams. This allows the Justice of the Peace to fill the duties of Town Magistrate and leverage the investment of support staff, one-stop court services for citizens and delivery of services at reduced costs for taxpayers. 9 Coconino County Parks and Recreation implemented a third creative and successful public/private partnership located at Fort Tuthill County Park. The county partnered with the Flagstaff Biking Association, and won a Bell Helmet Grant in the amount of $30,000 to build Phase I of a regional Bike Park at Fort Tuthill. The Bike Park is a totally free amenity which benefits county residents and visitors. The two existing public/private partnerships, Flagstaff Extreme Adventure Course and North Pole Experience continue to provide capital improvements in the park for the benefit of and future ownership of county residents, and through revenue sharing agreements, provide needed recurring revenues to increase funding available for maintenance needs within the park. Both of these partners increased revenue generation during FY15 with more successful promotions and additional improvements. Other Single Audit The independent audit of the financial statements of the County included the federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report on the audited government’s internal controls and compliance with legal requirements in addition to the fair presentation of the financial statements. This “Single Audit” puts special emphasis on internal controls and compliance with legal requirements involving the administration of federal awards. These reports are available in the County’s separately issued Single Audit report. Expenditure Limitation Arizona voters approved a proposition amending the state constitution in 1980 that established expenditure limitations for local governments, including Coconino County. The County has not exceeded the limitation. The County has accumulated expenditure limit carryforwards from prior years when actual expenditures were less than the limit and used some of these this year when expenditures would otherwise exceed the limit for this year. The County is required by state statute to prepare an Annual Expenditure Limitation Report (AELR), in conjunction with the required annual financial statements. The AELR must be audited and an opinion rendered on whether the AELR presents fairly, in all material respects, the information required by the Uniform Expenditure Reporting System. This report is available in the County’s separately issued Annual Expenditure Limitation Report. Awards Coconino County has received The Government Finance Officers Association of the United States and Canada (GFOA) Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report for fiscal years 2009, 2010, 2011, 2012, and 2014. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements. In addition, Coconino County has received the GFOA’s Distinguished Budget Presentation Award for its annual budget for fiscal years 2001 through 2014. In order to qualify for the 10 11 12 COCONINO COUNTY Organizational Chart CITIZENS OF COCONINO COUNTY JUDICIARY SUPERIOR COURT Court Administration Division I Division II Division III/Drug Court Division IV Division V Division VI Clerk of Superior Court Adult Probation JUVENILE COURT Juvenile Division Juvenile Probation JUSTICE COURTS Court Administration Flagstaff Fredonia Page Williams CONSTABLE COUNTY ATTORNEY BOARD OF SUPERVISORS Districts 1 2 3 4 5 CLERK OF THE BOARD ELECTED OFFICIALS Assessor Treasurer Attorney Recorder Sheriff Superintendent of Schools Board Assistants COUNTY MANAGER DEPUTY COUNTY MANAGER DEPUTY COUNTY MANAGER Public Defender Legal Defender Finance Facilities Management Community Services Community Development Governmental Relations Human Resources Public Information Officer 13 Emergency Management Public Health Services District Public Works Career Center Parks and Recreation Information Technology COCONINO COUNTY County Officials BOARD OF SUPERVISORS District 1 ....................................................................................................................................... Art Babbott, Vice Chair District 2 ........................................................................................................................................ Elizabeth C. Archuleta District 3 ................................................................................................................................................ Matthew G. Ryan District 4 .............................................................................................................................. Mandy Metzger, Chairperson District 5 ......................................................................................................................................................... Lena Fowler County Manager ............................................................................................................................. Cynthia Seelhammer Deputy County Manager ....................................................................................................................... Larry Dannenfeldt Deputy County Manager .......................................................................................................................... Mike Townsend Clerk of the Board ................................................................................................................................... Wendy Escoffier ELECTED OFFICIALS Clerk of the Superior Court ......................................................................................................................... Valerie Wyant Constable ...................................................................................................................................................Darrin Womble County Assessor ........................................................................................................................................... Chris Mazon County Attorney ....................................................................................................................................David W. Rozema County Recorder .......................................................................................................................................... Patty Hansen County Sheriff ............................................................................................................................................... William Pribil County Superintendent of Schools .......................................................................................................Risha VanderWey County Treasurer ....................................................................................................................................... Sarah Benatar Justice of the Peace Flagstaff .......................................................................................................... Howard Grodman Fredonia .............................................................................................................. Mark R. Baron Page .............................................................................................................. Donald G. Roberts Williams .......................................................................................................... Robert Krombeen Superior Court Division I ........................................................................................................... Jacqueline Hatch Division II ................................................................................................................. Dan Slayton Division III/Drug Court ................................................................. Mark Moran, Presiding Judge Division IV ............................................................................................... Elaine Fridlund-Horne Division V ............................................................................................. Cathleen Brown Nichols Division VI ................................................................................ Ted Reed, Judge Pro Tempore APPOINTED DEPARTMENT HEADS Adult Probation (Chief Probation Officer) ....................................................................................................... Cindy Winn Career Center .................................................................................................................................................Carol Curtis Community Development ......................................................................................................................... Jay Christelman Community Services ................................................................................................................................... Janet Regner Court Administrator .....................................................................................................................................Gary Krcmarik Facilities Management ................................................................................................................................. Susan Brown Public Health Services District ...................................................................................................................Marie Peoples Human Resources ...................................................................................................................................... Allison Eckert Finance ...........................................................................................................................................................Bonny Lynn Information Technology .......................................................................................................................... Kristopher Estes Juvenile Court Services ........................................................................................................................... Bryon Matsuda Legal Defender ....................................................................................................................................... Gary Pearlmutter Parks and Recreation .................................................................................................................................... Judy Weiss Public Defender ............................................................................................................................................. Sandra Diehl Public Works ........................................................................................................................................Andrew Bertelsen Superior Court Juvenile Court Judge/Commissioner ...................................................................... Margaret McCullough 14 FINANCIAL SECTION 15 THIS PAGE BLANK 16 STATE OF ARIZONA OFFICE OF THE DEBRA K. DAVENPORT, CPA AUDITOR GENERAL MELANIE M. CHESNEY AUDITOR GENERAL DEPUTY AUDITOR GENERAL Independent Auditors’ Report Members of the Arizona State Legislature P0F The Board of Supervisors of Coconino County, Arizona Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and aggregate remaining fund information of Coconino County as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 2910 NORTH 44 th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and aggregate remaining fund information of Coconino County as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with U.S. generally accepted accounting principles. Emphasis of Matter As discussed in Note 1 to the financial statements, for the year ended June 30, 2015, the County adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information U.S. generally accepted accounting principles require that the Management’s Discussion and Analysis on pages 22 through 35, Budgetary Comparison Schedules on pages 106 through 112, Schedule of the County’s Proportionate Share of the Net Pension Liability—Cost-Sharing Pension Plans on page 113, Schedule of Changes in the County’s Net Pension Liability and Related Ratios—Agent Pension Plans on pages 114 through 115, Schedule of County Pension Contributions on pages 116 through 117, and Schedule of Agent Retirement Plans’ and Coconino County Postemployment Healthcare Plan’s Funding Progress on page 119. 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 U.S. generally accepted auditing standards, 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. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual fund statements and schedules and the introductory and statistical sections listed in the table of contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. The combining and individual fund 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 basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with U.S. generally accepted auditing standards. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 18 The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Compliance Over the Use of Highway User Revenue Fund and Other Dedicated State Transportation Revenue Monies In connection with our audit, nothing came to our attention that caused us to believe that the County failed to use highway user revenue fund monies received by the County pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2, and any other dedicated state transportation revenues received by the County solely for the authorized transportation purposes, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the County’s noncompliance with the use of highway user revenue fund monies and other dedicated state transportation revenues, insofar as they relate to accounting matters. The communication related to compliance over the use of highway user revenue fund and other dedicated state transportation revenue monies in the preceding paragraph is intended solely for the information and use of the members of the Arizona State Legislature, the Board of Supervisors, management, and other responsible parties within the County and is not intended to be and should not be used by anyone other than these specified parties. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we will issue our report 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 at a future date. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Debbie Davenport Auditor General December 23, 2015 19 THIS PAGE BLANK 20 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (REQUIRED SUPPLEMENTARY INFORMATION) 21 Coconino County Management's Discussion and Analysis June 30, 2015 Management’s Discussion and Analysis (MD&A) of the County’s financial performance provides an overview of the County’s financial activities for the fiscal year ended June 30, 2015. Please read it in conjunction with the transmittal letter on page 3-11 and the County’s basic financial statements, which follow this section. FINANCIAL HIGHLIGHTS FOR FISCAL YEAR 2015     The assets and deferred outflows of resources of the County exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2015 by $137.78 million (net position). The unrestricted net deficit in the amount of -$86.37 million consists of positive net position in the amount of $24.47 million that may be used to meet the government's ongoing obligations to citizens and creditors. The negative unrestricted net position in the amount of $110.84 million is primarily the result of the County’s unfunded pension and OPEB obligations. The decrease in the County’s net position was $95.83 million in fiscal year 2015. At the close of fiscal year 2015, the County’s governmental funds reported combined ending fund balances of $98.66 million, an increase of $2.46 million. The General Fund reported an unassigned fund balance of $26.13 million at the close of fiscal year 2015, a decrease of $0.52 million. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. The County’s basic financial statements are comprised of three components: 1. 2. 3. Government-wide financial statements, Fund financial statements, and Notes to the financial statements. This report also contains other required supplementary information in addition to the basic financial statements. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private sector business. One of the most important questions asked about the County’s finances is, “Is the County as a whole better off or worse off as a result of this year’s activities?” The Statement of Net Position and the Statement of Activities report information about the County as a whole and about its activities in a way that helps answer this question. These statements include all non-fiduciary assets and liabilities using the accrual basis of accounting. 22 Coconino County Management's Discussion and Analysis June 30, 2015 The Statement of Net Position presents information on all of the County’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as Net Position. Net Position = (Assets + Deferred Outflows of Resources) – (Liabilities + Deferred Inflows of Resources) Over time, increases and decreases in net position are a useful indicator of an improving or deteriorating County financial condition. In addition to this change, other financial and nonfinancial factors should be considered. The Statement of Activities presents information showing how the County’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying events giving rise to the change occur, regardless of the timing of related cash flow. Therefore, revenues and expenses are reported in these statements for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes, and expenses pertaining to earned but unused vacation and sick leave. All of the County’s basic services are considered to be governmental activities, including general government, health, welfare, public safety, highways and streets, culture and recreation, education, and sanitation. Sales taxes, property taxes, intergovernmental revenues and user fees finance most of these activities. The government-wide financial statements can be found on pages 39-41 of this report. Fund Financial Statements The fund financial statements provide detailed information about the most significant County funds – not the County as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Some funds are required to be established by State law or by bond covenants. However, the Board of Supervisors establishes other funds to help control and manage money for particular purposes or to show that legal responsibilities are being achieved for using certain taxes, grants and other money. All of the County’s funds can be divided into three categories: governmental, proprietary, and fiduciary. Governmental funds—Most of the County’s basic services are reported in governmental funds, which focus on near-term inflows and outflows of spendable resources and the balances of spendable resources available at year-end. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed, shortterm view of the County’s operations and the basic services it provides. Governmental fund information helps determine financial resources that can be spent in the near future to finance the County’s programs. 23 Coconino County Management's Discussion and Analysis June 30, 2015 Because the focus of the governmental funds is narrower than that of the government-wide statements, it is useful to compare the information presented for the governmental funds with similar information presented for the governmental activities in the government-wide financial statements. Reconciliations between governmental activities, as reported in the Statement of Net Position and the Statement of Activities, and the governmental funds, as reported in the fund financial statements, is provided to facilitate this comparison. The County maintains numerous individual governmental funds. Information is presented separately in the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Public Works/HURF Fund, Jail District Fund, Parks and Open Spaces Tax Projects Fund, Public Health Services District Fund and Flood Control District Fund, which are considered to be major funds. Data from the other nonmajor governmental funds are combined into a single aggregate presentation. Individual fund data for these nonmajor governmental funds are provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 42-48 of this report. Proprietary funds—The County has one proprietary fund, an internal service fund, to report fleet service activities provided to the County’s other programs and activities. The County’s internal service fund only provides services to County departments, as such it is reported as a governmental activity in the Statement of Net Position and the Statement of Activities. The basic proprietary fund financial statements can be found on pages 49-51 of this report. Fiduciary funds—Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements as the resources of those funds are not available to support the County’s programs. The basic fiduciary funds financial statements can be found on pages 52-53 of this report. Notes to the Financial Statements and Required Supplementary Information Notes to the financial statements—The notes to the financial statements provide additional information that is essential to the full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 56-103 of this report. Required supplementary information—In addition to the basic statements and accompanying notes, the report presents required supplementary information on the County’s budgeting and budgetary control and the County’s progress in funding its obligation to provide pension and other postemployment benefits to its employees. Required supplementary information can be found on pages 106-120 of this report. 24 Coconino County Management's Discussion and Analysis June 30, 2015 GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Position The Statement of Net Position presents the financial position of the County at the end of the fiscal year, including all assets and deferred outflows, all liabilities and deferred inflows. The following table summarizes the County’s assets and deferred outflows, liabilities and deferred inflows, and net position on June 30, 2015 and June 30, 2014. Net Position may serve over time as a useful indicator of a County’s financial position. Governmental Activities (in millions) 2015 2014 $115.76 $106.56 150.22 145.93 265.98 252.49 Current and other assets Capital assets Total assets Deferred outflows of resources 19.68 Current liabilities Long-term liabilities outstanding Total liabilities 12.43 123.05 135.48 Deferred inflows of resources 7.47 11.41 18.88 12.40 Net position: Net investment in capital assets Restricted Unrestricted Total net position 149.87 74.28 (86.37) $ 137.78 145.48 69.54 18.59 $ 233.61 The implementation of GASB 68, which included a restatement of net position, also significantly contributed to an increase of $19.68 million in total deferred outflows of resources, an increase of $12.40 million in total deferred inflows of resources, an increase of $110.84 million in net pension liability, and a decrease of $104.96 million in unrestricted net position. Deferred Outflows of Resources Deferred outflows of resources are consumptions of the County’s net position that are applicable to a future reporting period. In fiscal year 2015 the County implemented GASB Statement 68, Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date; an amendment of GASB Statement No. 68. Due to the implementation of the above mentioned GASBs, deferred outflows of resources 25 Coconino County Management's Discussion and Analysis June 30, 2015 increased $19.68 million compared to fiscal year 2014 which was $0.00 million (see Note 10 - PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS for more information). Total Liabilities Total liabilities increased $116.60 million compared to fiscal year 2014 due to the following: an increase in accounts payable of $2.98 million, an increase in due to other governments of $1.67 million, and an increase in long term liabilities of $111.64 million. The increase in accounts payable is attributable to large Public Works projects completed over the summer of 2015. The increase in due to other governments was the result of Forest Fee revenue received too late to expend prior to June 30, 2015. The increase in long term liabilities is attributable to future postemployment health benefit liability and net pension liability (see Note 6 – LONG-TERM LIABILITIES). Deferred Inflows of Resources Deferred inflows of resources are an acquisition of net position by the County that are applicable to a future reporting period. In fiscal year 2015 the County implemented GASB Statement 68, Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date; an amendment of GASB Statement No. 68. Due to the implementation, in fiscal year 2015, of the above mentioned GASBs, deferred inflows of resources increased $12.40 million compared to fiscal year 2014 which was $0.00 million (see Note 10 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS for more information). Net investment in capital assets The County’s net investment in capital assets increased by $4.39 million in the current fiscal year, with total net investment in capital assets of $149.87 million. Capital assets include land, buildings, equipment, and infrastructure. These assets are used to provide services to citizens, but are not available for future spending. Restricted Net Position Expendable restricted net position includes resources in which the County is legally obligated to spend the resources in accordance with restrictions provided by external parties. The portion of the County’s net position which is subject to external restrictions is $74.28 million. The County’s restricted net position increased by $4.74 million in the current fiscal year. Unrestricted Net Position Unrestricted net position is not subject to externally imposed stipulations; however, most of these resources have been designated for particular capital projects and for the County’s unfunded pension and OPEB obligations. The reported negative balance of the County’s net position, -$86.37 million, is unrestricted and consists of, positive net position in the amount of $24.47 million that may be used to meet the government's ongoing obligations to citizens and creditors without constraints established by debt covenants or other legal requirements, and negative unrestricted net position in the amount of -$110.84 million 26 Coconino County Management's Discussion and Analysis June 30, 2015 which is primarily the result of the County’s unfunded pension and OPEB obligations (see Note 10 - PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS for more information). Total Net Position The County’s total net position from governmental activities at the end of the fiscal year was $137.78 million. The County’s total net position decreased by $95.83 million compared to fiscal year 2014. The major cause of the decrease is the unfunded pension liability in the amount of $110.84 million. As explained above, the County experienced a net decrease mainly due to changes in unrestricted net position as a result of implementing in fiscal year 2015 GASB Statement 68, Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date; an amendment of GASB Statement No. 68. Deferred Outflows of Resources & Deferred Inflows of Resources Deferred Outflows of Resources Deferred outflows of resources are new to the County’s Statement of Net Position for this fiscal year. This classification balance, although similar to “assets,” is set apart because these items do not meet the technical definition of being a County asset on the date of these financial statements. In other words, these amounts are not available to pay liabilities in the way assets are available. When all the recognition criteria are met, the deferred outflow of resources will become an expense/expenditure. Deferred outflow of resources being reported are related to the implementation of GASB Statement No. 68 and GASB Statement No. 71 for pension liability reporting. GASB 71 requires that employer contributions made during the fiscal year to the retirement system be reported as deferred outflows of resources. Consequently, a portion of the deferred outflows of resources reported are comprised of current year employer contributions to the retirement system. However, there are other deferred outflows of resources attributable to the various components that impact pension changes, and can include investment changes amortization, changes due to actuarial assumptions, and differences between expected or actual experience. Deferred Inflows of Resources Deferred inflows of resources are the counterpart to deferred outflows of resources on the Statement of Net Position. Deferred inflows of resources are not technically liabilities of the County as of the date of the financial statements. When all the recognition criteria are met, the deferred inflow of resources will become revenue or an increase to net position. Deferred inflows of resources being reported on the County’s Statement of Net Position are related to pensions and represent a net amount attributable to the various components that impact pension changes, and can include investment changes amortization, changes due to actuarial assumptions, and differences between expected or actual experience. 27 Coconino County Management's Discussion and Analysis June 30, 2015 Statement of Activities The Statement of Activities presents information on how the County’s net position changed during the most current fiscal year. The following table reflects the condensed Statement of Activities of the County for the fiscal year 2015 compared to the prior year. Governmental Activities (in millions) 2015 Revenues Program revenues: Charges for services $ 11.49 Operating grants and contributions 38.18 Capital grants and contributions 0.01 Total program revenue 49.68 General revenues: State shared revenue 23.30 Sales taxes 32.09 Property taxes 19.06 Grants and contributions not restricted to specific programs 2.48 Investment earnings 0.70 Gain on disposal of capital assets 0.22 Miscellaneous 0.09 Total general revenue 77.94 Total revenues 127.62 Program Expenses General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Interest on long-term debt Total program expenses Change in net position Net position - beginning Prior period adjustment Net position - beginning, as restated Net position - ending 28 34.77 42.40 14.91 2.01 13.91 4.49 6.68 6.71 0.02 125.90 1.72 233.61 (97.55) 136.06 $ 137.78 2014 $ 12.37 36.00 0.01 48.38 22.25 27.75 19.23 2.62 1.42 0.45 0.07 73.79 122.17 29.99 42.12 14.06 1.61 13.74 4.93 6.60 7.33 0.05 120.43 1.74 231.87 $ 233.61 Coconino County Management's Discussion and Analysis June 30, 2015 Note: The County implemented GASB Statement Nos. 68 and 71 in fiscal year 2015; therefore, pension liability and the related elements were not a required presentation in fiscal year 2014. The implementation of GASB Statement Nos. 68 and 71 resulted in a restatement of the County’s beginning net position from fiscal year 2014, which is reflected in the comparative table shown on the previous page. Overall program revenues increased by $1.30 million in the current fiscal year. This increase was from an increase in operating grants and contributions of $2.19 million and a reduction in charges for services of $0.88 million due to a decrease in the number of prisoners being housed for other governments in the County Jail. Program expenses increased $5.47 million in the current fiscal year. Total general revenue increased by $4.15 million in fiscal year 2015. This was due in large part to increased State shared and local county sales tax collections of $5.39 million, offset by reductions in property tax collections of $0.17 million, due to a few large property tax delinquencies, and reductions in investment earnings of $0.72 million due to investment market changes, and a reduction in gains from disposal of capital assets of $0.23 million. State shared revenue increased $1.05 million due in part to the moderate rebound in taxable sales at the state level, and can also be attributed to an additional “hold harmless” allocation based on assessed values in Coconino County representing a larger percentage of the total state assessed values that is greater than Coconino County’s percentage of the total state population. Local county sales tax revenue increased by $4.34 million due in large part to the new Road Maintenance Sales Tax (RMST), passed as a ballot measure by county voters in November 2014, for 3/10th of a cent, specifically for road maintenance and improvement projects. Collection of this sales tax began on January 1, 2015. The improving economy was also a factor in the increase in local sales tax collection. 29 Coconino County Management's Discussion and Analysis June 30, 2015 Revenues by Source - Governmental Activities 2014/2015 Property taxes 15% Unrestricted Grants and contributions 2% Investment earnings 1% Charges for services 9% Capital grants and contributions 0% Miscellaneous 0% Sales taxes 25% State shared revenue 18% Loss on disposal of capital assets 0% Operating grants and contributions 30% General Government expenses increased $4.78 million in the current fiscal year due to increased expenses for State mandated “restoration to competency” as well as the completion of the County data center relocation project. Highways, streets and sanitation expenses increased due to the implementation of a new permit tracking system, the start of summer road maintenance projects, and repair, replacement and maintenance projects at Kachina Village Improvement District. Welfare expenses and education expenses decreased due to reduced grant expenses for Community Services, the Career Center, and in the Superintendent of Schools Office. 30 Coconino County Management's Discussion and Analysis June 30, 2015 Program Revenues and Expenses for Governmental Activities Fiscal Year 2014-2015 (In thousands) $45,000 Expenses $40,000 Revenues $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 As shown in the “Revenues by Source for Governmental Activities” chart and “Program Revenues and Expenses for Governmental Activities” chart, for governmental activities overall, without regard to program, operating grants and contributions are the largest single source of funds (30%), followed by sales taxes (25%), and State shared revenue (18%). Public safety is the largest functional area in expense (34%), followed by general government (28%), highways and streets (12%) and public health services (11%). The County uses credit cards to pay certain vendors for goods and services and for employee travel expenses. The County received a financial consideration resulting from credit card payments for the year ended June 30, 2015 in the amount of $69,186. 31 Coconino County Management's Discussion and Analysis June 30, 2015 FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS The County reported six major funds for this fiscal year – General Fund, Public Works/HURF, Jail District, Public Health Services District, Parks and Open Spaces Tax Projects and Flood Control District. At year-end the County’s governmental funds reported combined fund balances of $98.66 million, which is an increase of $2.46 million from last year, or an increase of 2.56%. Of the total, $97.04 million (98.36%) constitutes spendable fund balance. Revenues and expenditures for governmental functions overall increased by 2.25% and 2.84%, respectively. These increases were the result of an increase in local and State sales tax revenues and annual merit increases for employees. Governmental fund revenues exceeded governmental fund expenditures by $2.33 million in the current fiscal year and the fund balance increased by $2.46 million. The General Fund is the County’s primary operating fund. At the end of the current fiscal year the spendable fund balance of the General Fund was $26.13 million. Spendable fund balance represents 94.51% of the General Fund’s total fund balance. The General Fund’s fund balance decreased by $0.57 million over fiscal year 2014. The Public Works/HURF Fund, fund balance increased by $0.64 million in the current fiscal year. The increase was from revenues exceeding expenditures, partially due to a very mild winter resulting in much lower expenditure for snow removal. A fiscal year 2014 Board approved transfer from HURF to Flood Control District for flood mitigation work, in the amount of $1.96 million, was completed in fiscal year 2015. The Flood Control District Fund, fund balance decreased by $1.09 million due to a reduction in grant awards. The reduction is based upon a return to more normal flood control activity, following five years of flood remediation projects as a result of the 2010 Schultz Flood event. The Jail District Fund, fund balance increased by $3.63 million in the current fiscal year. It increased primarily due to decreased operating expenditures, including vacancy savings. The Parks and Open Spaces Tax Projects Fund, fund balance increased by $0.50 million in the current fiscal year. This increase was due to final sales tax collected revenue and a delay in completing planned FY15 projects. The project expenditures will be realized in FY16. The Public Health Services District Fund, fund balance increased by $0.31 million in the current fiscal year. The change in fund balance was primarily from a decrease in the cost of the Title 36 (involuntary commitment) services contract. 32 Coconino County Management's Discussion and Analysis June 30, 2015 General Fund Budgetary Highlights    The final budgeted expenditures for the General Fund at year-end were $0.33 million more than the original adopted budget. This change was primarily due to budget adjustments for new grants and construction projects. For the General Fund, actual expenditures were $23.89 million less than the final budget. The expenditures variance was primarily unexpended contingency funds and fiscal reserves. The final budgeted revenues for the General Fund at year-end were $1,340 more than the original adopted budget. For the General Fund, actual revenues exceeded the final budget by $2.14 million. The increase was primarily due to significant increases in County Sales tax and State Shared Sales tax revenues. Capital Assets and Debt Administration Capital Assets (Note 5) During the current fiscal year, the County added $1.31 million to its buildings and other improvements inventory, reduced its machinery and equipment inventory by $0.37 million. The reduction in machinery and equipment was the result of performing a physical inventory during FY15 where previously unreported equipment and vehicle disposals were identified and removed from the capital asset list. The County added $4.43 million to its infrastructure inventory. The increase to land was the purchase of two parcels for the Copeland Detention Basin. The increase in buildings and other improvements includes 3 new signs at the entrance to Fort Tuthill, a building at KVID, shade structures at Rogers Lake and the Amphitheater and the creation of the Peaks View Equestrian arena. The increase to infrastructure includes a culvert for Rodeo Drive, improvements to the Munds Canyon Wash bridge, drainage improvements on Bowstring Road, North Paintbrush, Alice Drive and Campbell Avenue. Also added were improvements to the Campbell Avenue channel and a section of the upper Campbell Avenue roadway. The County’s overall estimated value of capital asset inventory increased $4.29 million net of increases in depreciation (see Note 5 – CAPITAL ASSETS found on page 71 of this report). 33 Coconino County Management's Discussion and Analysis June 30, 2015 The following table reflects the changes in capital assets for the County for the fiscal year 2015 compared to fiscal year 2014. Governmental Activities (net of depreciation) (in millions) Land Buildings and other improvements Machinery and equipment Infrastructure Construction in progress Total 2015 2014 $ 40.85 51.28 5.13 45.71 7.25 $ 150.22 $ 39.27 52.33 4.92 44.37 5.04 $ 145.93 Long-term Debt (Note 6) At the end of the current fiscal year the County had $345,131 in special assessment debt outstanding. The long-term liability for future postemployment health benefit (OPEB) liability has increased by $0.90 million to $6.33 million in the current year. This change is the result of $997 thousand in additional annual OPEB cost and only $93 thousand in actual contributions made during fiscal year 2015 (see Note 6 – LONG-TERM LIABILITIES found on page 72 of this report). ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS The County utilizes a Ten-Year Financial Plan, which is updated quarterly, to forecast the County’s financial future. The largest single revenue source is local and State shared sales taxes. Local and State shared sales taxes constitute approximately 43% of the County’s government-wide general revenues and approximately 60% of General Fund revenues. This makes the County’s revenues sensitive to both improvements and downturns in the economy. County staff incorporated historical financial trends, and local, national and global economic trends into the County’s fiscal 2015 budget. State shared sales tax and County sales tax revenues stabilized in fiscal year 2012 and are now above the prerecession measurement year of fiscal year 2007 levels; State shared sales tax exceeds the fiscal year 2007 level by 10.3% and County sales tax is 9.7% above the fiscal year 2007 level. The key elements of the fiscal year 2015 budget are based on the assumption that economic recovery began in fiscal year 2011, and we are now showing recovery in our state revenues. The county continues to see lower levels in federal and state grant revenue, and uncertainty in federal PILT and SRS. 34 Coconino County Management's Discussion and Analysis June 30, 2015 The county established the following Financial Planning Milestones in the fiscal year 2015 budget:      Align “high probability of receipt” revenue types with recurring expenditures. Allocate budgeted receipts above recessionary revenue levels to one-time or nonmission-critical expenditures. Plan adequate reserves for revenue smoothing and an emergency reserve, to allow for unknown and unplanned events. Provide adequate compensation to retain trained and experienced staff, who will efficiently and effectively deliver services. Strategically plan for long-term facility and technology resources to have appropriate work space and tools available for staff. In developing the fiscal year 2015 budget, major areas of concern were:  Impacts from the State shifting costs to the County, while reducing County revenue allocations to subsidize the State budget deficit.  Potential reductions in Federal funding, particularly the loss of Secure Rural Schools funding (previously known as Forest Fees), a major source of funding for schools and roads.  The commitment to our employees in the form of appropriate compensation to the extent possible and avoiding the cost of increased turnover which decreases efficiency.  Continuing increases in pension costs that further constrict limited resources.  Focus on holding health insurance costs well below national averages by expanding participation in the successful wellness program for employees, while considering other best practices. The County’s financial planning is based on realistic revenue estimates and the use of a strategic planning process to focus the expenditure of limited resources on meeting the current and future needs of its citizens, including the level of recurring costs that may be maintained during a recession. REQUESTS FOR INFORMATION This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the County’s finances and to show the County’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the County’s Finance Department, Coconino County, 219 East Cherry Avenue, Flagstaff, Arizona 86001. 35 THIS PAGE BLANK 36 BASIC FINANCIAL STATEMENTS 37 THIS PAGE BLANK 38 Coconino County Statement of Net Position June 30, 2015 Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Road sales tax Jail District sales tax Accrued interest Due from other governments Inventories Prepaid items Capital assets, not being depreciated Capital assets, being depreciated, net Total assets Governmental Activities $ 93,779,020 584,951 27,996 692,674 414,729 190,165 1,515,367 2,643,218 154,028 15,393,919 192,696 173,420 48,098,074 102,119,396 265,979,653 Deferred Outflows of Resources Deferred outflows related to pensions Total deferred outflows of resources 19,678,355 19,678,355 Liabilities Accounts payable Accrued payroll and employee benefits Due to other governments Deposits held for others Unearned revenues Noncurrent liabilities Due within 1 year Due in more than 1 year Total liabilities 3,487,293 119,561,533 135,481,409 Deferred Inflows of Resources Deferred inflows related to pensions Total deferred inflows of resources 12,398,947 12,398,947 7,781,371 2,424,836 2,111,531 65,807 49,038 Net Position Net investment in capital assets Restricted for: General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Debt service Capital projects Unrestricted Total net position 149,872,339 $ The accompanying notes are an integral part of these basic financial statements. 39 2,604,868 21,192,016 25,822,841 1,539,844 2,441,638 20,096 855,646 1,447,023 433,744 17,926,727 (86,379,130) 137,777,652 THIS PAGE BLANK 40 Coconino County Statement of Activities Year Ended June 30, 2015 Expenses Functions/Programs Primary government: Governmental activities: General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Interest on long-term debt Total governmental activities 34,766,812 42,398,679 14,906,659 2,007,358 13,915,744 4,486,667 6,682,930 6,708,189 24,582 $ 125,897,620 Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions 4,737,629 2,538,879 114,459 1,327,150 1,463,783 243,096 879,799 180,507 2,166,744 10,116,459 13,229,517 258,854 3,794,463 2,154,596 191,494 6,272,332 $ 11,485,302 $ 38,184,459 General revenues Taxes: Property taxes, levied for general purposes Property taxes, levied for library Property taxes, levied for flood control Property taxes, levied for accommodation school Property taxes, levied for health services General county sales tax Road sales tax Jail District sales tax Parks and open spaces sales tax Excise tax Franchise tax Shared revenue - state sales tax Shared revenue - state vehicle license tax Grants and contributions not restricted to specific programs Investment earnings Gain on disposal of capital assets Miscellaneous Total general revenues Change in net position Net (Expenses) Revenues and Changes in Net Position Total $ 6,744 77 $ 6,821 $ (27,862,439) (29,743,341) (1,555,939) (421,277) (8,657,498) (2,088,975) (5,611,637) (255,350) (24,582) (76,221,038) 9,023,305 3,848,918 2,425,568 8 3,761,327 13,579,820 3,778,550 13,576,136 997,627 70,356 94,022 19,995,985 3,301,848 2,484,148 700,571 218,749 86,637 77,943,575 1,722,537 Net position - beginning Prior period adjustment (Note 2) Net position, July 1, 2014 Net position, June 30, 2015 233,609,876 (97,554,761) 136,055,115 $ 137,777,652 The accompanying notes are an integral part of these basic financial statements. 41 Coconino County Balance Sheet Governmental Funds June 30, 2015 Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Road sales tax Jail District sales tax Accrued interest Advances to other funds Due from: Other funds Other governments Inventories Prepaid items Total assets General Fund Public Works/HURF Fund Jail District Fund $ 22,967,974 $ 22,002,978 $ 17,678,516 308,649 32,561 42,926 32,703 1,515,367 36,016 1,448,262 34,679 2,643,218 29,235 5,129,806 7,074,135 326 68,650 $ 37,066,379 1,681,540 1,900,436 107,456 246,837 9,617 $ 27,187,543 472 $ 20,738,437 $ $ Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $ 1,241,789 Accrued payroll and employee benefits 1,274,980 Advances from other funds Due to: Other funds 4,802,149 Other governments 1,792,978 Deposits held for others 21,305 Unearned revenue 42,768 Total liabilities 9,175,969 Deferred Inflows of Resources Unavailable revenue - property taxes Unavailable revenue - special assessments Unavailable revenue - intergovernmental Unavailable revenue - charges for services Unavailable revenue - other Total deferred inflows of resources 2,975,738 155,204 342,940 282,085 3,018,503 500 297,034 189,578 6,149,945 1,111,637 46,557 246,825 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 246,825 46,557 14,321 600 7,943 22,864 1,517,238 9,617 20,981,424 472 19,603,464 20,991,041 19,603,936 $ 27,187,543 $ 20,738,437 26,126,347 27,643,585 $ 37,066,379 The accompanying notes are an integral part of these basic financial statements. 42 Public Health Services District Fund Flood Control District Fund $ $ 674,528 142,627 48,285 Parks and Open Spaces Tax Projects Fund $ 93,159 $ 148,148 171,704 $ $ 11,165 6,256,652 2,045,839 6,198 1,000,000 137,823 91,188 4,284,166 548,863 7,336,203 114,857 60,045 321,012 16,107 1,981,347 451,976 2,041,392 67,296 1,923,241 11,165 2,991,376 $ 92,815,742 584,951 27,996 148,239 187,577 190,165 692,674 355,662 190,165 1,515,367 2,643,218 152,519 1,498,262 27,442 50,000 2,624,906 3,527,422 4,279,467 1,577,824 $ 14,582,167 $ 14,276 3,353 17,629 14,564,538 (3,132,108) (3,120,943) 1,990,537 $ $ 14,944,201 584,951 27,996 23,012 989,240 1,067,265 67,296 2,991,376 Total Governmental Funds 11,610 2,135 $ 14,547,545 Nonmajor Governmental Funds $ 6,256,652 14,564,538 $ 14,582,167 43 16,220 $ 22,034,082 14,812,415 15,393,919 326 173,420 $ 130,856,636 $ $ 877,654 291,339 498,262 7,646,384 2,184,863 1,498,262 2,586,223 37,287 44,502 6,270 4,341,537 15,125,898 2,111,531 65,807 49,038 28,681,783 119,874 191,511 385,980 46 10,123 707,534 541,601 191,511 2,749,217 16,753 18,066 3,517,148 16,220 17,140,183 (171,392) 16,985,011 $ 22,034,082 1,622,008 74,212,850 22,822,847 98,657,705 $ 130,856,636 THIS PAGE BLANK 44 Coconino County Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2015 Fund balances − total governmental funds $ 98,657,705 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 149,490,191 Some receivables are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 3,517,148 Internal service funds are used by management to charge the costs of certain activities, such as automotive maintenance, to individual funds. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service fund are included in governmental activities in the Statement of Net Position. 1,221,559 Long-term liabilities, including bonds payable, compensated absences payable, and claims and judgments payable, are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liabilities are not due and payable in the current period and, therefore, are not reported in the funds. (12,210,353) (110,222,422) Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions Net position of governmental activities 19,606,387 (12,282,563) $ 137,777,652 The accompanying notes are an integral part of these basic financial statements. 45 Coconino County Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2015 Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Expenditures: Current: General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures General Fund Public Works/HURF Fund $ $ 8,974,992 13,744,308 3,778,550 669,503 1,300,142 26,782,924 1,789,308 386,158 185,737 189,457 54,022,529 4,113 15,595,103 28,717,395 12,966,175 509,354 13,158,153 Jail District Fund $ 13,576,136 30,969 11,594,209 1,947 185,315 1,219 897,899 154,205 13,600 2,729 14,645,788 13,514,000 98,776 1,003,175 2,309,376 450,298 46,054,549 13,158,153 13,514,000 Excess (deficiency) of revenues over expenditures 7,967,980 2,436,950 1,131,788 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 605,473 (9,144,554) (8,539,081) 110,958 1,517,555 (3,427,015) (1,798,502) 2,542,147 (40,714) 2,501,433 Net change in fund balances (571,101) Fund balances, July 1, 2014 Fund balances, June 30, 2015 28,214,686 $ 27,643,585 The accompanying notes are an integral part of these basic financial statements. 46 638,448 3,633,221 20,352,593 $ 20,991,041 15,970,715 $ 19,603,936 Public Health Services District Fund Flood Control District Fund $ $ 3,740,930 42 818,425 300 3,869,962 605,451 10,245 113,804 48,788 9,207,947 2,421,758 Parks and Open Spaces Tax Projects Fund $ 997,627 1,150 3,043,812 5,496 4 10,157 129,855 841 1,133,819 5,476,881 685,206 308,890 15,623,686 3,709,696 172,329 276,818 319,115 24,376,662 635,177 105,144 24,582 25,140,264 105,144 24,582 122,126,378 635,177 (4,606,718) (4,332,689) 498,642 4,917,178 (3,056) 4,914,122 3,250,383 (4,009) 3,246,374 307,404 (1,086,315) (2,034,628) (3,120,943) $ 18,966,331 32,096,706 137,434 1,520,047 1,609,332 60,921,308 7,004,301 1,038,111 600,116 565,043 124,458,729 3,828,651 43 137,434 2,951,049 4,289,206 6,006,252 646,291 9,809,570 $ $ 31,139,164 43,662,534 13,734,826 1,941,069 13,091,067 4,091,392 6,598,582 6,456,550 1,281,468 13,814,665 1,683,133 1,990,537 Total Governmental Funds 2,421,769 6,687,583 67,319 1,941,069 9,809,570 12,992,291 137,168 $ Other Governmental Funds (763,602) 17,000 2,594,571 (2,807,959) (196,388) 498,642 $ 14,065,896 14,564,538 47 (959,990) 17,945,001 $ 16,985,011 2,332,351 127,958 15,427,307 (15,427,307) 127,958 2,460,309 96,197,396 $ 98,657,705 Coconino County Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities Year Ended June 30, 2015 Net change in fund balances − total governmental funds $ 2,460,309 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay Depreciation expense Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in the governmental funds. Decrease in compensated absences Increase in claims and judgments Increase in future postemployment health benefits 11,059,957 (6,613,095) 4,446,862 88,668 (91,895) (903,605) (906,832) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Principal repaid 105,145 Revenues in the Statement of Activities that do not provide current financial resources are not reported in the funds. 2,917,133 County pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net position liability is measured a year before the County's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. County pension contribution 6,927,134 Pension expense (14,088,354) Internal service funds are used by management to charge the costs of certain activities, such as automotive maintenance, to individual funds. The activities of the internal service fund is reported with governmental activities. Change in net position of governmental activities (138,860) $ The accompanying notes are an integral part of these basic financial statements. 48 1,722,537 Coconino County Statement of Net Position Proprietary Fund June 30, 2015 Assets Current assets: Cash and cash equivalents Receivables (net of allowances for uncollectibles): Accounts Accrued interest Due from other funds Inventories Total current assets Governmental Activities Internal Service Fund $ 963,278 59,067 1,509 313,629 192,370 1,529,853 Noncurrent assets: Capital assets, net of accumulated depreciation: Buildings, net Equipment, net Capital assets, net Total noncurrent assets 43,484 683,795 727,279 727,279 Total assets 2,257,132 Deferred Outflows of Resources Deferred outflows related to pensions Total deferred outflows of resources 71,968 71,968 Liabilities Current liabilities: Accounts payable Accrued payroll and employee benefits Due to other funds Total current liabilities 134,987 239,973 146 375,106 Noncurrent liabilities: Net pension liability Total noncurrent liabilities 616,051 616,051 Total liabilities 991,157 Deferred Inflows of Resources Deferred inflows related to pensions Total deferred inflows of resources 116,384 116,384 Net Position Net investment in capital assets Unrestricted Total net position $ The accompanying notes are an integral part of these basic financial statements. 49 727,279 494,280 1,221,559 Coconino County Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Fund Year Ended June 30, 2015 Governmental Activities Internal Service Fund Operating revenues: Charges for services Total operating revenues $ Operating expenses: Personal services Professional services Supplies Utilities Repairs and maintenance Travel Depreciation Total operating expenses 2,384,937 2,384,937 743,720 98,397 1,422,210 17,170 70,732 6,775 264,158 2,623,162 Operating Loss (238,225) Nonoperating revenues: Investment earnings Gain on disposal of capital assets Total nonoperating revenues 8,574 90,791 99,365 Decrease in net position (138,860) Total net position, July 1, 2014, as restated 1,360,419 Total net position, June 30, 2015 $ The accompanying notes are an integral part of these basic financial statements. 50 1,221,559 Coconino County Statement of Cash Flows Proprietary Fund Year Ended June 30, 2015 Governmental Activities- Internal Service Fund Cash flows from operating activities: Receipts from other funds for services provided Payments to suppliers and providers of goods and services Payments to employees Net cash provided by operating activities $ Cash flows from capital and related financing activities: Proceeds from sale of capital assets Purchases of capital assets Net cash used for capital and related financing activities 2,430,186 (1,576,642) (741,805) 111,739 98,762 (111,615) (12,853) Cash flows from investing activities: Interest received on investments Net increase (decrease) in fair value of investments Net cash provided by investing activities 7,554 790 8,344 Net increase in cash and cash equivalents 107,230 Cash and cash equivalents, July 1, 2014 856,048 Cash and cash equivalents, June 30, 2015 Reconciliation of operating loss to net cash provided by operating activities: Operating loss Adjustments to reconcile operating loss to net cash used for operating activities: Depreciation Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: Increase in: Accounts receivable Accrued payroll and employee benefits Deferred outflows related to pensions Deferred inflows related to pensions Decrease in: Accounts payable Due from other funds Due to other funds Inventories Net pension liability Net cash provided by operating activities The accompanying notes are an integral part of these basic financial statements. 51 $ 963,278 $ (238,225) 264,158 (40,620) 12,573 (31,810) 116,384 $ (58,993) 88,871 (3,002) 90,860 (88,457) 111,739 Coconino County Statement of Fiduciary Net Position Fiduciary Funds June 30, 2015 Investment Trust Funds Assets Cash and cash equivalents Cash and investments held by trustee Interest and dividends receivable Total assets $ 101,474,046 Agency Funds $ 184,139 101,658,185 1,835,811 950,113 2,785,924 Liabilities Deposits held for others Due to other governments Total liabilities 2,514,606 271,318 2,785,924 Net Position Held in trust for investment trust participants $ 101,658,185 The accompanying notes are an integral part of these basic financial statements. 52 $ Coconino County Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended June 30, 2015 Investment Trust Funds Additions: Contribution from participants Investment earnings: Interest and dividends Net increase in fair value of investments Total investment earnings Total additions $ 229,577,154 943,369 128,587 1,071,956 230,649,110 Deductions: Distributions to participants Total deductions 237,701,848 237,701,848 Change in net position (7,052,738) Net position, July 1, 2014 108,710,923 Net position, June 30, 2015 $ The accompanying notes are an integral part of these basic financial statements. 53 101,658,185 THIS PAGE BLANK 54 BASIC FINANCIAL STATEMENTS - NOTES 55 Coconino County Notes to Financial Statements June 30, 2015 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Coconino County’s accounting policies conform to generally accepted accounting principles applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB). For the year ended June 30, 2015, the County implemented the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. GASB Statement Nos. 68 and 71 establish standards for measuring and recognizing net pension (assets and) liabilities, deferred outflows of resources, deferred inflows of resources, and expenses/expenditures related to pension benefits provided through defined benefit pension plans. In addition, Statement No. 68 requires disclosure of information related to pension benefits. A. Reporting Entity The County is a general purpose local government that is governed by a separately elected board of five county supervisors. The accompanying financial statements present the activities of the County (the primary government) and its component units. Component units are legally separate entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are so intertwined with the County that they are in substance part of the County’s operations. Therefore, data from these units is combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize they are legally separate from the County. Each blended component unit discussed below has a June 30 year-end. The County has no discretely presented component units. As the Coconino County Board of Supervisors serves as the Board of Directors of all special districts discussed below, it is able to significantly influence the programs, projects, activities, and level of services provided by the Districts; the Board also establishes policy, appoints management, exercises budgetary control and determines tax rates. Further, the Districts provide services almost entirely for the benefit of the County; therefore, the Districts are considered blended component units of the County. Separate financial statements for the Districts are not available. 56 Coconino County Notes to Financial Statements June 30, 2015 The following table describes the County’s component units: For Separate Reporting Financial Method Statements Component Unit Description; Criteria for Inclusion Coconino County Flood Control District A tax-levying district that provides flood Blended control systems; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Library District Provides and maintains library services Blended for the County’s residents; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Special Assessment Districts Constructs or improves roads, sidewalks, Blended curbs and gutters, and irrigation systems within the County; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Street Lighting Districts Operates and maintains street lighting in Blended areas outside local city jurisdictions; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Jail District A tax-levying district that acquires, Blended constructs, operates, maintains, and finances county jails and jail systems; the County’s Board of Supervisors serves as the board of directors Not available Public Health Services District A tax-levying district that provides and Blended maintains health services for the County’s residents; the County’s Board of Supervisors serves as the board of directors Not available 57 Coconino County Notes to Financial Statements June 30, 2015 Related Organization: The Industrial Development Authority of Coconino County (Authority) is a legally separate entity that was created to assist in the financing of commercial activities, including a health care institution, residential real property for dwelling units located within the County, and industrial park facilities. The Authority fulfills its function through the issuance of tax exempt bonds. The County Board of Supervisors appoints the Authority’s Board of Directors, but cannot remove a member of the Authority’s Board at-will. The Authority’s operations are completely separate from the County and the County is not financially accountable for the Authority. Therefore, the financial activities of the Authority have not been included in the accompanying financial statements. B. Basis of Presentation The basic financial statements include both government-wide statements and fund financial statements. The government-wide statements focus on the County as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information’s usefulness. Government-wide statements – Provide information about the primary government (the County) and its component units. The statements include a statement of net position and a statement of activities. These statements report the financial activities of the overall government, except for fiduciary activities. Governmental activities generally are financed through taxes and intergovernmental revenues. A statement of activities presents a comparison between direct expenses and program revenues for each function of the County’s governmental activities. Direct expenses are those that are specifically associated with a program or function, and therefore, are clearly identifiable to a particular function. Program revenues include:  charges to customers or applicants for goods, services, or privileges provided,  operating grants and contributions, and  capital grants and contributions. Revenues that are not classified as program revenues, including internally dedicated resources and all taxes the County levies or imposes, are reported as general revenues. Generally, the effect of interfund activity has been eliminated from the government-wide financial statements to minimize the double-counting of internal activities. However, charges for interfund services provided and used are not eliminated if the prices approximate their external exchange values. 58 Coconino County Notes to Financial Statements June 30, 2015 Fund financial statements – Provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements are presented for the governmental, proprietary, and fiduciary fund categories. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Fiduciary funds are aggregated and reported by fund type. Proprietary fund revenues and expenses are classified as either operating or nonoperating. Operating revenues and expenses generally result from transactions associated with the fund’s principal activity. Accordingly, revenues, such as user charges in which each party receives and gives up essentially equal values are operating revenues. Other revenues, such as investment earnings, result from transactions in which the parties do not exchange equal values and are considered nonoperating revenues along with revenues generated by ancillary activities. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. Other expenses, such as interest expense, are considered nonoperating expenses. The County reports the following major governmental funds: The General Fund is the County’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Public Works/HURF Fund is a special revenue fund used to account for highway user fees restricted to the construction, repair, and maintenance of county roads that are funded primarily by a State-shared fuel tax and a County Road Maintenance Sales Tax. The Jail District Fund is a special revenue fund used to account for jail operations and jail capital improvements that are funded by a one-half cent sales tax. The Public Health Services District Fund is a special revenue fund used to account for health services for County residents that are funded by a $0.2500 per $100 of assessed valuation property tax. The Flood Control District Fund is a special revenue fund used to account for flood control services that are funded by a $0.4000 per $100 of assessed valuation property tax. The Parks and Open Spaces Tax Projects Fund is a capital projects fund (reported as a special revenue fund prior to fiscal year 2013) used to account for parks and open space acquisitions and improvements that are funded by collections from a one-eighth cent sales tax and grants. Collections from the one-eighth cent sales tax ceased after September 2014. The County also reports the following fund types: The internal service fund accounts for automotive maintenance and operation provided to the County’s departments or to other governments on a cost-reimbursement basis. 59 Coconino County Notes to Financial Statements June 30, 2015 The investment trust funds account for pooled and non-pooled assets held and invested by the County Treasurer on behalf of other governmental entities. The agency fund accounts for assets held by the County as an agent for the State and various local governments, and for property taxes collected and distributed to the State, local school districts, community college districts, and special districts. C. Basis of Accounting The government-wide, proprietary fund, and fiduciary fund financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. The agency funds are custodial in nature and do not have a measurement focus but utilize the accrual basis of accounting for reporting its assets and liabilities. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Property taxes are recognized as revenue in the year for which they are levied. Grants and donations are recognized as revenue as soon as all eligibility requirements the provider imposed have been met. Under the terms of grant agreements, the County funds certain programs by a combination of grants and general revenues. Therefore, when program expenses are incurred, there are both restricted and unrestricted resources available to finance the program. The County applies grant resources to such programs before using general revenues. Governmental funds in the fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when they become both measurable and available. The County considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year-end. Tax revenues collected within 60 days after year-end are accrued as the County had a claim to those revenues at year-end. Other revenues, including grants from federal and state governments, are considered available if collected within 90 days if the County has a claim to the revenues, and the amount is measurable and available to pay liabilities of the current period. The County’s major revenue sources that are subject to accrual are state-shared sales taxes and fuel taxes, county sales taxes, property taxes, and grants from the federal and state governments. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they are due and payable. General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of general long-term debt and acquisitions under capital lease agreements are reported as other financing sources. 60 Coconino County Notes to Financial Statements June 30, 2015 D. Cash and Investments For the statement of cash flows, the County’s cash and cash equivalents are considered to be cash on hand, demand deposits, cash on deposit with the County Treasurer, highly liquid investments with a maturity of three months or less when purchased, and investments that may be called by the Treasurer at any time without penalty. Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and participating interest-earning investment contracts with a remaining maturity of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. E. Inventories Inventories in the government-wide and the proprietary fund’s financial statements are recorded as assets when purchased and expensed when consumed. These inventories are stated at cost using the first-in, first-out, and moving weighted average methods of valuation for the government-wide financial statements, and the weighted average method of valuation for the proprietary fund’s financial statement. The County accounts for its inventories in the governmental funds using the consumption method. Inventories of the governmental funds are recorded as assets when purchased and expensed when consumed. Amounts on hand at year-end are shown on the balance sheet as an asset for informational purposes only and as nonspendable fund balance to indicate that they do not constitute “available spendable resources.” These inventories are stated at cost using the first-in, first-out method of valuation. F. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Amounts on hand at year-end are shown on the balance sheet as an asset for informational purposes only and as nonspendable fund balance to indicate that they do not constitute “available spendable resources.” G. Property Tax Calendar The County levies real and personal property taxes on or before the third Monday in August that become due and payable in two equal installments. The first installment is due on the first day of October and becomes delinquent after the first business day of November. The second installment is due on the first day of March of the next year and becomes delinquent after the first business day of May. A lien assessed against real and personal property attaches on the first day of January preceding assessment and levy. 61 Coconino County Notes to Financial Statements June 30, 2015 H. Capital Assets Capital assets are reported at actual cost or estimated historical cost if historical records are not available. Donated assets are reported at estimated fair value at the time received. Capitalization thresholds (the dollar values above which asset acquisitions are added to the capital asset accounts), depreciation methods, and estimated useful lives of capital assets reported in the government-wide and proprietary fund’s statements are as follows: Capitalization Threshold Land All Construction in progress $5,000 Buildings and other improvements 5,000 Machinery and equipment 5,000 Infrastructure 5,000 Depreciation Method Estimated Useful Life N/A N/A Straight-Line Straight-Line Straight-Line N/A N/A 5-50 Years 3-40 Years 7-50 Years I. Deferred Outflows and Inflows of Resources The statement of net position and balance sheet include separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources represent a consumption of net position that applies to future periods that will be recognized as an expense or expenditure in future periods. Deferred inflows of resources represent an acquisition of net position or fund balance that applies to future periods and will be recognized as a revenue in future periods. J. Pensions For purposes of measuring the net pension (asset and) liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. K. Fund Balance Classifications The governmental funds’ fund balances are reported separately within classifications based on a hierarchy of the constraints placed on those resources’ use. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications. 62 Coconino County Notes to Financial Statements June 30, 2015 The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form, such as inventories, or are legally or contractually required to be maintained intact. Restricted fund balances are those that have externally imposed restrictions on their usages by creditors (such as through debt covenants), grantors, contributors, or laws and regulations. The unrestricted fund balance category is comprised of committed, assigned, and unassigned resources. Committed fund balances are self-imposed limitations that the County’s Board of Supervisors approved, which is the highest level of decision-making authority within the County. Only the Board can remove or change the constraints placed on committed fund balances. Assigned fund balances are resources constrained by the County’s intent to be used for specific purposes, but that are neither restricted nor committed. The Board of Supervisors has authorized the County Manager to assign resources for a specific purpose. The unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not reported in the other classifications. Also, deficits in fund balances of the other governmental funds are reported as unassigned. When an expenditure is incurred that can be paid from either restricted or unrestricted fund balances, the County will use restricted fund balance first. The County has no formal policy as to its disbursing of unrestricted fund balances. L. Investment Earnings Investment earnings is composed of interest, dividends, and net changes in the fair value of applicable investments. M. Compensated Absences Compensated absences payable consist of vacation leave, compensatory time, and a calculated amount of sick leave employees earned based on services already rendered. Employees may accumulate up to 240 hours of vacation depending on years of service, but they forfeit any unused vacation hours in excess of the maximum amount. Upon terminating employment, the County pays all unused and unforfeited vacation benefits to employees. Any unused vacation hours in excess of the maximum amount at fiscal year-end is forfeited. Accordingly, vacation benefits are accrued as a liability in the government-wide and proprietary fund’s financial statements. Non-exempt, eligible employees may accumulate up to 80 hours of compensatory time. Accruals beyond 80 hours require approval of the Human Resources director. The Fair Labor Standards Act requires the payoff of any compensatory time balance above 240 hours for most non-exempt positions and 480 hours for public safety positions. This is done periodically throughout the year. Upon termination, all unused compensatory time is paid to 63 Coconino County Notes to Financial Statements June 30, 2015 the employee. Accordingly, compensatory time is accrued as a liability in the governmentwide and proprietary fund’s financial statements. Employees may accumulate up to 1,040 hours of sick leave. Generally, sick leave benefits provide for ordinary sick pay and are cumulative but employees forfeit them upon terminating employment. However, for employees who terminate with a minimum of 20 years of continuous service, sick leave benefits do vest. Such eligible terminating employees are compensated at the rate of one day for each four sick days accrued. Accordingly, this vested sick leave is accrued as a liability in the government-wide and proprietary fund’s financial statements. NOTE 2 – CHANGE IN ACCOUNTING PRINCIPLE Net position as of July 1, 2014, has been restated as follows for the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Governmental Activities Net Position as previously reported at June 30, 2014 Internal Service Fund $233,609,876 $2,024,769 104,321,327 704,508 (6,766,566) (40,158) 97,554,761 664,350 $136,055,115 $1,360,419 Prior period adjustment– implementation of GASB 68: Net pension liability (measurement date as of June 30, 2013) Deferred outflowscounty contributions made during fiscal year 2014 Total prior period adjustment Net position as restated, July 1, 2014 64 Coconino County Notes to Financial Statements June 30, 2015 NOTE 3 – DEPOSITS AND INVESTMENTS Arizona Revised Statutes (A.R.S.) authorize the County Treasurer to invest public monies in securities and deposits with a maximum maturity of five years. All public monies shall be invested in eligible investments, including; the State Treasurer’s investment pool; obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations, or instrumentalities; specified state and local government bonds, notes, and other evidences of indebtedness including those of counties, incorporated cities or towns, school districts or special taxing districts, including registered warrants; interest-earning investments such as savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; commercial paper of prime quality issued by corporations organized and doing business in the United States; specified bonds, debentures, notes, and other evidences of indebtedness that are denominated in United States dollars and certain open-end and closed-end mutual funds, including exchange traded funds. In addition, the County Treasurer may invest trust funds in certain fixed income securities of corporations doing business in the United States or District of Columbia. Credit risk Statutes have the following requirements for credit risk: 1. Commercial paper must be of prime quality and be rated within the top two ratings by a nationally recognized rating agency. 2. Bonds, debentures, notes, and other evidences of indebtedness that are denominated in United States dollars must be rated “A” or better at the time of purchase by at least two nationally recognized rating agencies. 3. Fixed income securities must carry one of the two highest ratings by Moody’s Investors Service and Standard and Poor’s rating service. If only one of the above-mentioned services rates the security, it must carry the highest rating of that service. Custodial credit risk The Arizona State Treasurer’s Office became the Administrator of a State Wide Pooled Collateral Program, with an effective date of July 1, 2014. The purpose of the Pooled Collateral Program is to ensure all taxpayer funds on deposit with any federally insured depository in excess of any insurance is backed with 102% of eligible collateral and provide an efficient means for eligible depositories to aggregate collateral for public deposits. Under the Pooled Collateral Program, each financial institution with public deposits pledges a pool of collateral against all of the public deposits it holds for the state and local governments of the State of Arizona except as provided by law. That collateral is pledged to the pooled collateral administrator who is responsible for monitoring the collateral on behalf of all public depositors. The Pooled Collateral Administrator (“Administrator”) is established in the 65 Coconino County Notes to Financial Statements June 30, 2015 Arizona State Treasurer’s Office and may adopt and enforce policies and procedures as necessary to carry out its duties pursuant to A.R.S. §35-1202 et seq. The Administrator is responsible for ensuring that eligible depositories have posted 102% collateral for each public depositor in excess of any federally insured deposits. Coconino County’s deposits are covered under the State Wide Pooled Collateral Program. Concentration of credit risk Statutes do not include any requirements for concentration of credit risk. Interest rate risk Statutes require that public monies invested in securities and deposits have a maximum maturity of 5 years. The maximum maturity for investments in repurchase agreements is 180 days. Foreign currency risk Statutes do not allow foreign investments unless the investment is denominated in United States dollars. Deposits – At June 30, 2015, the carrying amount of the County’s deposits was $33,895,801 and the bank balance was $38,549,108. The County does not have a formal policy with respect to custodial credit risk. The County adheres to the custodial credit risk requirements in Statutes. At June 30, 2015, $8,489,697 of the County’s bank balance was exposed to custodial credit risk as follows: Uninsured and uncollateralized Total $ $ 66 8,489,697 8,489,697 Coconino County Notes to Financial Statements June 30, 2015 Investments – The County’s investments at June 30, 2015, were as follows: Investment Type U.S. agency securities Corporate bonds Negotiable CDs Commercial paper Municipal bonds Money market mutual funds Mutual funds-debt State Treasurer's investment pool #7 Subtotal, debt securities Mutual funds-equity Total Amount $ 102,388,897 35,036,474 11,391,475 5,983,524 5,870,571 3,020,000 439,933 307,502 164,438,376 148,796 $ 164,587,172 The State Board of Investment provides oversight for the State Treasurer’s pools. The fair value of a participant’s position in the pool approximates the value of that participant’s pool shares, and the participant’s shares are not identified with specific investments. Credit risk – The County Treasurer has a formal investment policy with respect to credit risk which mirrors A.R.S. 35-323. At June 30, 2015, credit risk for the County’s investments was as follows: 67 Coconino County Notes to Financial Statements June 30, 2015 Investment Type U.S. agency securities Corporate bonds Negotiable CDs Corporate bonds Corporate bonds Corporate bonds Money market Mutual funds Commercial paper Commercial paper Municipal bonds Corporate bonds Municipal bonds Municipal bonds Municipal bonds Corporate bonds Corporate bonds Municipal bonds Municipal bonds State Treasurer's investment pool #7 Corporate bonds Corporate bonds Mutual funds-debt Municipal bonds Municipal bonds Mutual funds-debt Corporate bonds Corporate bonds Municipal bonds Municipal bonds Municipal bonds Rating AAA A1 Unrated Baa1 A A2 Aaa-mf A2 A1 A+ A+ AA AAA AA+ BBB+ AA+ AAA Unrated AAAa3 Unrated Aa3 A2 Unrated AAA A1 AAA Aa2 Rating Agency Amount Moody's $ 102,388,897 Moody's 16,653,848 Not Applicable 11,391,475 Moody's 6,936,740 Standard and Poor's 4,299,095 Moody's 3,524,465 Moody's 3,020,000 Standard and Poor's 2,996,823 Standard and Poor's 2,986,702 Standard and Poor's 1,782,335 Standard and Poor's 1,651,369 Standard and Poor's 942,820 Standard and Poor's 812,788 Standard and Poor's 722,763 Standard and Poor's 658,384 Standard and Poor's 507,244 Standard and Poor's 486,368 Standard and Poor's 441,370 Not Applicable 307,502 Standard and Poor's 302,382 Moody's 300,411 Not Applicable 261,428 Moody's 255,175 Moody's 196,037 Not Applicable 178,505 Standard and Poor's 101,620 Standard and Poor's 100,916 Moody's 100,448 Moody's 80,170 Moody's 50,296 $ 164,438,376 Custodial credit risk – for an investment, custodial credit risk is the risk that, in the event of the counterparty’s failure, the County will not be able to recover the value of its investments or collateral securities that are in an outside party’s possession. The County does not have a formal policy with respect to custodial credit risk. Concentration of credit risk – The County Treasurer has a formal policy with respect to concentration of credit risk. The policy allows more than 5% of the portfolio from any one issuer, with the exception of a corporate issuer. Corporate bonds in total shall not exceed 20% of the entire portfolio and no one corporate issuer shall exceed 5% of the entire portfolio. The County had investments at June 30, 2015, of five percent or more in Federal Home Loan Bank, Federal Farm Credit Bank, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation. These investments were 32.18%, 10.92%, 10.91%, and 6.29%, respectively, of the County’s total investments. 68 Coconino County Notes to Financial Statements June 30, 2015 In May and June 2015, a total of $15 million in agency bonds were called. The last position purchased by the Treasurer was on March 9, 2015. Cash received from the called bonds were not reinvested and were used for cash flow purposes. As a result, corporate bonds exceeded 20% of the portfolio total on June 30, 2015 by 1.3%. Interest rate risk – The County Treasurer has a formal policy with respect to interest rate risk, acknowledging that in a rising rate environment investments may have to be held to maturity rather than incur a loss of principle in a net trade situation. Diversification in the portfolio can be used to reduce the adverse effect of rising rates. At June 30, 2015, the County had the following investments in debt securities: Investment Type U.S. agency securities Corporate bonds Negotiable CDs Commercial paper Municipal bonds Money market mutual funds State Treasurer's investment pool #7 Mutual funds-debt Mutual funds-debt 69 Amount 102,388,897 35,036,474 11,391,475 5,983,524 5,870,571 3,020,000 307,502 261,428 178,505 $ 164,438,376 Weighted Average Maturity in Years 2.450 2.111 1.754 0.206 2.264 0.066 0.300 7.300 6.600 Coconino County Notes to Financial Statements June 30, 2015 A reconciliation of cash, deposits, and investments to amounts shown on the Statements of Net Position follows: Cash, deposits, and investments: Cash on hand $ Amount of deposits 33,895,801 Amount of investments 164,587,172 Total Statement of Net Position: Cash and cash equivalents Investments Cash and investments held by trustee(s) Total 168,964 $ 198,651,937 Governmental Activities $ Investment Trust Funds 93,779,020 584,951 $ 101,474,046 27,996 $ 94,391,967 $ 101,474,046 Agency Funds Total $ 1,835,811 $ 197,088,877 584,951 950,113 978,109 $ 2,785,924 $ 198,651,937 NOTE 4 – RECEIVABLES Due from other governments – Amounts due from other governments at June 30, 2015, include $3,356,573 and $1,696,629 in state-shared revenue from sales taxes and fuel taxes, respectively; $220,103 from the State of Arizona for state vehicle license tax; $2,643,419 in county sales tax; $3,929,796 in grants from the federal government; $1,418,254 in grants from various state agencies; and $372,364 in reimbursements from the Arizona Department of Emergency Management. The remaining balance of $1,775,531 is composed of miscellaneous receivables from federal, state, and local government. 70 Coconino County Notes to Financial Statements June 30, 2015 NOTE 5 – CAPITAL ASSETS Capital asset activity for the year ended June 30, 2015, was as follows: Governmental activities Capital assets not being depreciated: Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings and other improvements Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings and other improvements Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Total Balance July 1, 2014 Increases $ 39,271,117 5,043,736 44,314,853 $ 1,574,418 8,895,365 10,469,783 88,463,980 35,579,576 100,081,490 224,125,046 1,310,454 1,648,274 4,430,657 7,389,385 36,130,530 30,659,348 55,718,900 122,508,778 101,616,268 $ 145,931,121 2,362,147 1,427,957 3,087,149 6,877,253 512,132 $ 10,981,915 Decreases $ 6,686,562 6,686,562 2,018,574 2,018,574 2,009,570 2,009,570 9,004 $ 6,695,566 Balance June 30, 2015 $ 40,845,535 7,252,539 48,098,074 89,774,434 35,209,276 104,512,147 229,495,857 38,492,677 30,077,735 58,806,049 127,376,461 102,119,396 $ 150,217,470 Depreciation expense was charged to functions as follows: Governmental activities: General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Internal service fund $ Total governmental activities depreciation expense 895,784 1,217,383 3,226,473 222,261 113,441 67,126 771,166 99,461 264,158 $ 6,877,253 Construction and Other Significant Commitments – The County had major contractual commitments related to various capital projects at June 30, 2015, for the repair and construction of a major flood control project and facilities upgrades. At June 30, 2015, the County had spent $6,444,506 on these projects and had remaining contractual commitments with contractors totaling $1,716,598. These projects are being financed by Flood Control property tax, highway user revenues, federal and state emergency management reimbursements, and state grants. 71 Coconino County Notes to Financial Statements June 30, 2015 NOTE 6 – LONG-TERM LIABILITIES The following schedule details the County’s long-term liability and obligation activity for the year ended June 30, 2015: Governmental Activities Balance July 1, 2014, as restated Additions Reductions Balance June 30, 2015 Due within 1 year $ $ $ Bonds payable: Special assessment bonds with governmental commitment Total bonds payable Compensated absences payable Claims and judgments payable Future postemployment health benefit liability (Note 10) Net pension liability* (Note 10) Governmental activities long-term liabilities $ 450,276 450,276 $ 105,145 105,145 345,131 345,131 4,929,404 601,007 3,015,071 163,527 3,103,739 71,632 4,840,736 692,902 5,427,979 104,321,327 996,848 14,863,921 93,243 8,346,775 6,331,584 110,838,473 $ 115,729,993 $ 19,039,367 $ 11,720,534 $ 123,048,826 85,000 85,000 3,271,131 131,162 $ 3,487,293 * There was a restatement of net position as a result of the implementation of GASB Statement No.68 (see Note 2). Special Assessment Bonds – Special assessment bonds are secured by pledges of revenues from special assessments levied against the benefiting property owners. Proceeds from special assessment bonds are used for improvements such as paving, street lighting, and sewers. The special assessment districts pledged these assessments to repay the principal amount of $3,767,917 in special assessment debt. Payment made by the assessed property owners are 100 percent pledged to pay the scheduled principal and interest payments on special assessment bonds. In the event of default by the property owner, the lien created by the assessment is sold at public auction and the proceeds are used to offset the default assessment. At June 30, 2015, future pledged revenues through final maturity at July 1, 2019 totaled $390,131 consisting of $345,131 for principal and $45,000 for interest. Future principal and interest payments are expected to require 100 percent of pledged special assessment revenues. Principal and interest paid for the current year and total current year special assessment revenues were $129,726 and $126,033, respectively. While there is no legal obligation for the County to further secure the special assessment debt of the districts below, the County has made a moral commitment to take steps necessary to prevent default. 72 Coconino County Notes to Financial Statements June 30, 2015 The following special assessment bonds were outstanding at June 30, 2015: Description Special assessment bonds with governmental commitment Original Amount Maturity Ranges Interest Rates Outstanding Principal $ 3,767,917 7/1/2014-19 4.75-5.65% $ 345,131 The following schedule details debt service requirements to maturity for the County’s special assessment bonds payable at June 30, 2015: Governmental Activities Year Ending June 30 2016 2017 2018 2019 Total Assessment Bonds Principal Interest 85,000 18,150 89,000 13,700 94,000 9,039 77,131 4,111 $ 345,131 $ 45,000 Insurance Claims – The County provides life, health and disability benefits to its employees and their dependents through the Northern Arizona Public Employee Benefit Trust (Trust), currently composed of seven members. The Trust provides benefits through a self-funding agreement with its participants and administers the program. The County is responsible for paying the premium and requires its employees to contribute a portion of that premium. If it withdraws from the Trust, the County is responsible for any claims run-out costs, including claims reported but not settled, claims incurred but not reported, and administrative costs. If the Trust were to terminate, the County would be responsible for its proportional share of any Trust deficit. Compensated Absences and Claims and Judgments – Compensated absences are paid from various funds in the same proportion that those funds pay payroll costs. Claims and judgments are generally paid from the fund that accounts for the activity that gave rise to the claim. During fiscal year 2015, the County paid for compensated absences as follows: 52.14 percent from the General Fund, 32.50 percent from major funds, and 15.36 percent from other funds. The County paid for claims and judgments from the General Fund. 73 Coconino County Notes to Financial Statements June 30, 2015 NOTE 7 – FUND BALANCE CLASSIFICATION OF GOVERNMENTAL FUNDS The fund balance classifications of the governmental funds as of June 30, 2015, were as follows: Fund balances: Nonspendable: Advances Inventories Prepaid items Total nonspendable Restricted for: Debt Service Highways and Streets Jail and Sheriff Culture and Recreation Health Capital Projects Education Sanitation Welfare Probation Superior Court Justice Courts Public and Legal Defenders County Attorney General Govt Services Total restricted Unassigned Total fund balances General Fund $ 1,448,262 326 68,650 1,517,238 Public Works/HURF Fund $ 9,617 9,617 20,981,424 Jail District Fund Public Health Services District Fund $ $ Flood Control District Fund 67,296 67,296 242,233 4,785,243 1,230,464 735,772 1,923,241 19,603,464 1,923,241 $20,991,041 $19,603,936 $ 1,990,537 14,564,538 3,362,189 1,175,434 1,539,844 18,922 1,457,360 482,741 426,383 87,941 777,480 818,177 17,140,183 $14,564,538 $16,985,011 14,564,538 (171,392) (3,132,108) 26,126,347 $27,643,585 16,220 16,220 11,165 11,165 19,603,464 20,981,424 Other Governmental Funds $ $ $ 472 472 Parks and Open Spaces Tax Projects $(3,120,943) Total Governmental Funds $ 1,448,262 326 173,420 1,622,008 242,233 25,766,667 20,833,928 735,772 1,923,241 17,926,727 1,175,434 1,539,844 18,922 1,457,360 482,741 426,383 87,941 777,480 818,177 74,212,850 22,822,847 $98,657,705 NOTE 8 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY At June 30, 2015, the following nonmajor governmental fund reported a deficit in fund balance. Fund Governmental Funds: Emergency Services Grants Deficit $ 171,392 The fund balance deficit for the Emergency Services Grants Fund resulted from operations during the year and is expected to be corrected during normal operations in fiscal year 2016. 74 Coconino County Notes to Financial Statements June 30, 2015 NOTE 9 – RISK MANAGEMENT The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. These risks of loss are accounted for and financed by the following described insurance coverage and internal risk management program. The County contracts with CopperPoint Mutual Insurance Company to meet Arizona statutory requirements on workers compensation coverage for its elected officials, employees, and volunteers. There is no deductible associated with this coverage and no loss limit per claim. The employer’s liability section of our workers’ compensation policy is insured with coverage limits at the $1,000,000 level. There have been no claims against our employer’s liability to date. The County also purchases coverage from insurers for property insurance, commercial general liability, public official errors and omissions liability, law enforcement liability, employment practices liability, employee benefits liability, automobile liability and physical damage, healthcare professional liability, cyber liability, environmental impairment liability, and non-owned aircraft liability. The County self-insures liability claims for the first $125,000 with the exception of a few specialty lines noted here after. The County self- insures environmental liability claims for the first $50,000 and healthcare professional liability for the first $100,000. There is a $25,000 deductible for cyber liability, and also a $25,000 deductible for automobile physical damage. A self-insurance retention fund has been established for these losses. There is no self-insured retention or deductible on our nonowned aircraft liability policy. The County carries excess layers of liability with a combined limit of $30,000,000 over our basic individual $1,000,000 liability limits for commercial general liability, public official errors and omissions liability, law enforcement liability, employment practices liability, employee benefits liability, and automobile liability. We carry a separate $5,000,000 on professional healthcare liability, $1,000,000 on cyber liability, $1,000,000 on environmental impairment liability, and $5,000,000 on non- owned aircraft liability which are not included in our excess liability insurance coverage. For real property and business personal property damage coverage the County has a $25,000 deductible with blanket coverage up to the property values insured on a replacement cost basis on the special property form. This property insurance includes flood with a $5,000,000 sublimit and a $100,000 deductible for most properties. Two locations are listed with a higher $500,000 deductible for flood insurance. Our property insurance also includes coverage for earthquake with a $5,000,000 sublimit and a $100,000 deductible. Crime coverage is carried at a limit of $1,000,000 with a $25,000 deductible. Settled claims have not exceeded commercial insurance coverage for any of the past three fiscal years. 75 Coconino County Notes to Financial Statements June 30, 2015 NOTE 10 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The County contributes to the plans described below. The plans are component units of the State of Arizona. At June 30, 2015, the County reported the following aggregate amounts related to pensions for all plans to which it contributes: Statement of Net Position and Statement of Activities Governmental Activities Net pension liabilities $110,838,473 Deferred outflows of resources 19,678,355 Deferred inflows of resources 12,398,947 Pension expense 14,125,130 The County’s accrued payroll and employee benefits includes $34,447 of outstanding pension contribution amounts payable to all pension plans for the year ended June 30, 2015. Also, the County reported $6,927,134 of pension contributions as expenditures in the governmental funds related to all pension plans to which it contributes. A. Arizona State Retirement System Plan description - County employees not covered by the other pension plans described below participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing, multiple-employer defined benefit pension plan, a cost-sharing, multipleemployer defined benefit health insurance premium benefit (OPEB) plan, and a costsharing, multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on its Web site at www.azasrs.gov. Benefits provided – The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit as follows: 76 Coconino County Notes to Financial Statements June 30, 2015 ASRS Years of service and age required to receive benefit Retirement Initial membership date: Before July 1, 2011 On or after July 1, 2011 Sum of years and age equals 80 30 years age 55 10 years age 62 25 years age 60 5 years age 50* 10 years age 62 any years age 65 5 years age 50* any years age 65 Final average salary is based on Highest 36 consecutive months of last 120 months Highest 60 consecutive months of last 120 months Benefit percent per year of service 2.1% to 2.3% 2.1% to 2.3% *With actuarially reduced benefits. Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earning. Members with a membership date on or after September 13, 2013, are not eligible for costof-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit is determined by the retirement benefit option chosen. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned. Contributions – In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the year ended June 30, 2015, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.6 percent (11.48 percent for retirement and 0.12 percent for long-term disability) of the members’ annual covered payroll, and the County was required by statute to contribute at the actuarially determined rate of 11.6 percent (10.89 percent for retirement, 0.59 percent for health insurance premium benefit, and 0.12 percent for long-term disability) of the active members’ annual covered payroll. In addition, the County was required by statute to contribute at the actuarially determined rate of 9.57 percent (9.31 percent for retirement, 0.20 percent for health insurance premium benefit, and 0.06 percent for long-term disability) of annual covered payroll of retired members who worked for the County in positions that would typically be filled by an employee who contributes to the ASRS. The County’s contributions to the pension plan for the year ended June 30, 2015, were $3,929,303. The County’s contributions for the current and 2 preceding years for OPEB, all of which were equal to the required contributions, were as follows: 77 Coconino County Notes to Financial Statements June 30, 2015 Year ended June 30, 2015 2014 2013 Health Benefit Supplement Fund $ 212,883 214,717 232,842 Long-Term Disability Fund $ 43,298 85,887 85,972 During fiscal year 2015, the County paid for ASRS pension and OPEB contributions as follows: 53.7 percent from the General Fund, 32.8 percent from major funds, and 13.5 percent from other funds. Pension liability – At June 30, 2015, the County reported a liability of $58,741,596 for its proportionate share of the ASRS’ net pension liability. The net pension liability was measured as of June 30, 2014. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2013, to the measurement date of June 30, 2014. The County’s proportion of the net pension liability was based on the County’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2014. The County’s proportion measured as of June 30, 2014, was 0.397 percent, which was a decrease of .007 from its proportion measured as of June 30, 2013. Pension expense and deferred outflows/inflows of resources – For the year ended June 30, 2015, the County recognized pension expense for ASRS of $3,533,238. At June 30, 2015, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ASRS Deferred Outflows of Resources Differences between expected and $ actual experience Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between county contributions and proportionate share of contributions County contributions subsequent to the measurement date Total $ 2,985,420 Deferred Inflows of Resources $ 10,272,092 40,990 3,929,303 6,955,713 805,207 $ 11,077,299 The $3,929,303 reported as deferred outflows of resources related to ASRS pensions resulting from county contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2016. Other amounts 78 Coconino County Notes to Financial Statements June 30, 2015 reported as deferred outflows of resources and deferred inflows of resources related to ASRS pensions will be recognized in pension expense as follows: Year ending June 30 2016 2017 2018 2019 $(1,602,282) (1,602,282) (2,278,301) (2,568,024) Actuarial Assumptions – The significant actuarial assumptions used to measure the total pension liability are as follows: ASRS Actuarial valuation date Actuarial roll forward date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent benefit increase Mortality rates June 30, 2013 June 30, 2014 Entry age normal 8% 3 - 6.75% 3% Included 1994 GAM Scale BB Actuarial assumptions used in the June 30, 2013, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2012. The long-term expected rate of return on ASRS pension plan investments was determined to be 8.79 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: ASRS Target Allocation 63% 25% 8% 4% 100% Asset Class Equity Fixed income Real estate Commodities Total 79 Long-Term Expected Real Rate of Return 7.03% 3.20% 4.75% 4.50% Coconino County Notes to Financial Statements June 30, 2015 Discount Rate – The discount rate used to measure the ASRS total pension liability was 8 percent, which is less than the long-term expected rate of return of 8.79 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the County’s proportionate share of the ASRS net pension liability to changes in the discount rate – The following table presents the County’s proportionate share of the net pension liability calculated using the discount rate of 8 percent, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (7 percent) or 1 percentage point higher (9 percent) than the current rate: ASRS County’s proportionate share of the net pension liability 1% Decrease (7%) Current Discount Rate (8%) $ 74,246,365 $ 58,741,596 1% Increase (9%) $50,329,480 Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report. B. Public Safety Personnel Retirement System and Corrections Officer Retirement Plan Plan descriptions – County sheriff employees who are regularly assigned hazardous duty participate in the Public Safety Personnel Retirement System (PSPRS). The PSPRS administers an agent multiple-employer defined benefit pension plan and an agent multipleemployer defined benefit health insurance premium benefit (OPEB) plan (agent plans). A seven-member board known as the Board of Trustees and the participating local boards govern the PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. County detention officers and Administrative Office of the Courts (AOC) probation, surveillance, and juvenile detention officers participate in the Corrections Officer Retirement Plan (CORP). The CORP administers an agent multiple-employer defined benefit pension plan and an agent multiple-employer defined benefit health insurance premium benefit (OPEB) plan for county detention officers (agent plans), and a cost-sharing multipleemployer defined benefit pension plan and a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan for AOC officers (cost-sharing plans). The PSPRS Board of Trustees and the participating local boards govern CORP according to the provisions of A.R.S. Title 38, Chapter 5, Article 6. 80 Coconino County Notes to Financial Statements June 30, 2015 The PSPRS and CORP issue publicly available financial reports that include their financial statements and required supplementary information. The reports are available on the PSPRS Web site at www.psprs.com. Benefits provided – The PSPRS and CORP provide retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits are calculated on the basis of age, average monthly compensation, and service credit as follows: PSPRS Retirement and Disability Years of service and age required to receive benefit Final average salary is based on Initial membership date: Before January 1, 2012 On or after January 1, 2012 20 years any age 15 years age 62 25 years age 52.5 Highest 36 consecutive months of last 20 years Highest 60 consecutive months of last 20 years Benefit percent Normal Retirement Accidental Disability Retirement Catastrophic Disability Retirement Ordinary Disability Retirement 50% less 2.0% for each year of credited service less than 20 years OR plus 2.0% to 2.5% for each year of credited service over 20 years, not to exceed 80% 2.5% per year of credited service, not to exceed 80% 50% or normal retirement, whichever is greater 90% for the first 60 months then reduced to either 62.5% or normal retirement, whichever is greater Normal retirement calculated with actual years of credited service or 20 years of credited service, whichever is greater, multiplied by years of credited service (not to exceed 20 years) divided by 20 Survivor Benefit Retired Members 80% to 100% of retired member’s pension benefit Active Members 80% to 100% of accidental disability retirement benefit or 100% of average monthly compensation if death was the result of injuries received on the job 81 Coconino County Notes to Financial Statements June 30, 2015 CORP Retirement and Disability Years of service and age required to receive benefit Final average salary is based on Initial membership date: Before January 1, 2012 On or after January 1, 2012 Sum of years and age equals 80 20 years any age 10 years age 62 25 years age 52.5 10 years age 62 Highest 36 consecutive months of last 10 years Highest 60 consecutive months of last 10 years Benefit percent Normal Retirement Accidental Disability Retirement 2.0% to 2.5% per year of credited service, not to exceed 80% 50% or normal retirement if more than 20 years of credited service 50% or normal retirement if more than 25 years of credited service Total and Permanent Disability Retirement 50% or normal retirement if more than 25 years of credited service Ordinary Disability Retirement 2.5% per year of credited service or normal retirement, whichever is greater Survivor Benefit Retired Members 80% of retired member’s pension benefit Active Members 40% of average monthly compensation or 100% of average monthly compensation if death was the result of injuries received on the job. If there is no surviving spouse or eligible children, the beneficiary is entitled to 2 times the member’s contributions. Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on excess investment earning. PSPRS also provides temporary disability benefits of 50 percent of the member’s compensation for up to 12 months. 82 Coconino County Notes to Financial Statements June 30, 2015 Employees covered by benefit terms – At June 30, 2015, the following employees were covered by the agent pension plans’ benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees Total PSPRS Sheriff CORP Detention 52 8 13 51 116 44 90 142 Contributions and annual OPEB cost – State statutes establish the pension contribution requirements for active PSPRS and CORP employees. In accordance with state statutes, annual actuarial valuations determine employer contribution requirements for PSPRS and CORP pension and health insurance premium benefits. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. Contributions rates for the year ended June 30, 2015, are indicated below. Rates are a percentage of active members’ annual covered payroll. Active members—Pension County Pension Health insurance premium benefit PSPRS Sheriff 11.05% CORP Detention 8.41% CORP AOC 8.41% 56.12% 2.12% 7.97% 0.85% 14.88% 1.24% In addition, the County was required by statute to contribute at the actuarially determined rate of 19.65 percent for the PSPRS of annual covered payroll of retired members who worked for the County in positions that would typically be filled by an employee who contributes to the PSPRS. For the agent plans, the County’s contributions to the pension plan and annual OPEB cost and contributions for the health insurance premium benefit for the year ended June 30, 2015, were: 83 Coconino County Notes to Financial Statements June 30, 2015 Pension Contributions made Health Insurance Premium Benefit Annual OPEB cost Contributions made PSPRS Sheriff $1,819,260 CORP Detention $295,361 68,725 68,725 31,500 31,500 Contributions to the CORP AOC pension plan for the year ended June 30, 2015, were $525,370. The County’s contributions for the current and 2 preceding years for the CORP AOC OPEB, all of which were equal to the required contributions, were as follows: CORP AOC Year ended June 30 2015 2014 2013 Health Insurance Fund $ 43,781 39,346 43,994 During fiscal year 2015, the County paid for PSPRS, CORP, and CORP AOC pension and OPEB contributions as follows: 71.5 percent from the General Fund, 12.3 percent from major funds, and 16.3 percent from other funds. Pension liability – At June 30, 2015, the County reported the following net pension liabilities (and asset): Net Pension Liability PSPRS Sheriff $29,959,119 CORP Detention 2,190,977 CORP AOC (County’s proportionate share) 7,259,716 The net pension liabilities were measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The total pension liabilities as of June 30, 2014, reflect the following changes of benefit terms and actuarial assumptions.  In February 2014, the Arizona Supreme Court affirmed a Superior Court ruling that a 2011 law that changed the mechanism for funding permanent benefit increases was unconstitutional. As a result, the plans changed benefit terms to reflect the prior mechanism for funding permanent benefit increases and revised actuarial assumptions to explicitly value future permanent benefit increases. 84 Coconino County Notes to Financial Statements June 30, 2015  The wage growth actuarial assumption was decreased from 4.5 percent to 4.0 percent. Pension actuarial assumptions – The significant actuarial assumptions used to measure the total pension liability are as follows: PSPRS and CORP – Pension Actuarial valuation date Actuarial cost method Discount rate Projected salary increases Inflation Permanent benefit increase Mortality rates June 30, 2014 Entry age normal 7.85% 4.0%–8.0% for PSPRS and 4.0%–7.25% for CORP 4.0% Included RP-2000 mortality table (adjusted by 105% for both males and females) Actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2011. The long-term expected rate of return on PSPRS and CORP pension plan investments was determined to be 7.85 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: PSPRS and CORP Asset Class Short term investments Absolute return Risk parity Fixed income Real assets GTAA Private equity Real estate Credit opportunities Non-U.S. equity U.S. equity Total Target Allocation 2% 4% 4% 7% 8% 10% 11% 11% 13% 14% 16% 100% 85 Long-Term Expected Real Rate of Return 3.25% 6.75% 6.04% 4.75% 5.96% 5.73% 9.50% 6.50% 8.00% 8.63% 7.60% Coconino County Notes to Financial Statements June 30, 2015 Pension discount rates – The following discount rates were used to measure the total pension liabilities: Discount rates PSPRS Sheriff CORP Detention CORP AOC 7.85% 7.85% 7.85% The projection of cash flows used to determine the PSPRS and CORP discount rates assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the actuarially determined contribution rate and the member rate. Based on those assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 86 Coconino County Notes to Financial Statements June 30, 2015 Changes in the Net Pension Liability PSPRS Sheriff Balances at June 30, 2014 Increase (Decrease) Total Plan Net Pension Fiduciary Net Pension Liability Position Liability (a) (b) (a) – (b) 32,979,729 9,408,628 23,571,101 Changes for the year: Service cost 526,940 526,940 Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability 2,499,646 1,149,553 2,499,646 1,149,553 40,499 40,499 Changes of assumptions or other inputs 5,497,276 5,497,276 Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balances at June 30, 2015 1,717,418 342,096 1,251,743 (2,801,153) (2,801,153) 6,912,761 39,892,490 (10,081) 24,720 524,743 9,933,371 87 (1,717,418) (342,096) (1,251,743) 10,081 (24,720) 6,388,018 29,959,119 Coconino County Notes to Financial Statements June 30, 2015 CORP Detention Increase (Decrease) Total Plan Net Pension Fiduciary Net Pension Liability Position Liability (a) (b) (a) – (b) 7,445,173 5,646,437 1,798,736 Balances at June 30, 2014 Changes for the year: Service cost Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability Changes of assumptions or other inputs Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balances at June 30, 2015 536,007 588,300 43,775 536,007 588,300 43,775 124,233 124,233 448,734 448,734 313,756 320,700 788,339 (437,813) 1,303,236 8,748,409 (313,756) (320,700) (788,339) (437,813) (6,198) (67,789) 910,995 6,557,432 6,198 67,789 392,241 2,190,977 The County’s proportion of the CORP AOC net pension liability as of June 30, 2013 and 2014 was based on the County’s actual contributions to the plan relative to the total of all participating counties’ actual contributions for the year ended June 30, 2014. The County’s proportion measured as of June 30, 2013 and 2014 was 3.235 percent. Sensitivity of the County’s net pension liability to changes in the discount rate – The following table presents the County’s net pension liabilities calculated using the discount rates noted above, as well as what the County’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate: 88 Coconino County Notes to Financial Statements June 30, 2015 1% Decrease PSPRS Sheriff Rate Net pension liability CORP Detention Rate Net pension liability CORP AOC Rate County’s proportionate share of the net pension liability Current Discount Rate 6.85% $ 35,544,412 $ $ 6.85% 3,521,323 $ 7.85% 8.85% 29,959,119 $ 26,133,967 7.85% 2,190,977 $ 6.85% $ 9,586,285 $ 1% Increase 8.85% 1,109,772 7.85% 8.85% 7,259,716 $ 5,326,647 Pension plan fiduciary net position – Detailed information about the pension plans’ fiduciary net position is available in the separately issued PSPRS and CORP financial reports. Pension expense – For the year ended June 30, 2015, the County recognized the following pension expense: PSPRS Sheriff CORP Detention CORP AOC Pension Expense $ 4,208,139 498,685 971,440 Pension deferred outflows/inflows of resources – At June 30, 2015, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: PSPRS Sheriff Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments County contributions subsequent to the measurement date Total Deferred Outflows of Resources Deferred Inflows of Resources $ $ 31,555 4,283,240 417,498 1,819,260 6,134,055 $ 89 $ 417,498 Coconino County Notes to Financial Statements June 30, 2015 CORP Detention Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments County contributions subsequent to the measurement date Total CORP AOC Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments County contributions subsequent to the measurement date Total Deferred Outflows of Resources Deferred Inflows of Resources $ $ 101,696 367,331 261,715 295,361 764,388 $ $ 261,715 Deferred Outflows of Resources Deferred Inflows of Resources $ $ 344,598 1,066,569 401,898 525,370 1,936,537 $ $ 401,898 The amounts reported as deferred outflows of resources related to pensions resulting from county contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ending June 30 2016 2017 2018 2019 2020 PSPRS Sheriff CORP Detention $ 1,118,606 $ 1,118,606 1,118,606 541,480 90 CORP AOC 38,511 $ 38,511 38,511 38,511 53,266 207,668 207,668 207,668 207,668 178,599 Coconino County Notes to Financial Statements June 30, 2015 Agent plan OPEB actuarial assumptions – The health insurance premium benefit contribution requirements for the year ended June 30, 2015, were established by the June 30, 2013, actuarial valuations, and those actuarial valuations were based on the following actuarial methods and assumptions. Actuarial valuations involve estimates of the reported amounts’ value and assumptions about the probability of events in the future. Amounts determined regarding the plans’ funded status and the annual required contributions are subject to continual revision as actual results are compared to past expectations and new estimates are made. The required schedule of funding progress for the health insurance premium benefit presented as required supplementary information provides multiyear trend information that shows whether the actuarial value of the plans’ assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Projections of benefits are based on (1) the plans as the County and plans’ members understand them and include the types of benefits in force at the valuation date, and (2) the pattern of sharing benefit costs between the County and plans’ members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The significant actuarial methods and assumptions used are the same for all PSPRS and CORP plans and related benefits (unless noted), and the following actuarial methods and assumptions were used to establish the fiscal year 2015 contribution requirements: PSPRS and CORP – OPEB Contribution Requirements Actuarial valuation date June 30, 2013 Actuarial cost method Entry age normal Amortization method Level percent closed for unfunded actuarial accrued liability, open for excess Remaining amortization period 23 years for unfunded actuarial accrued liability, 20 years for excess Asset valuation method 7-year smoothed market value; 20% corridor Actuarial assumptions: Investment rate of return 7.85% Projected salary increases 4.5%–8.5% for PSPRS and 4.5%–7.75% for CORP Wage growth 4.5% for PSPRS and CORP 91 Coconino County Notes to Financial Statements June 30, 2015 Agent plan OPEB trend information – Annual OPEB cost information for the health insurance premium benefit for the current and 2 preceding years follows for each of the agent plans: Year Ended June 30 PSPRS Sheriff 2015 Percentage of Annual Cost Contributed Annual OPEB Cost 68,725 100% 2014 68,144 100% 0 2013 67,838 100% 0 Year Ended June 30 CORP Detention 2015 2014 2013 $ Net OPEB Obligation Percentage of Annual Cost Contributed Annual OPEB Cost $ $ 31,500 30,825 31,371 0 Net OPEB Obligation 100% 100% 100% $ 0 0 0 Agent plan OPEB funded status – The health insurance premium benefit plans’ funded status as of the most recent valuation date, June 30, 2015, along with the actuarial assumptions and methods used in those valuations follow. PSPRS Sheriff Actuarial value of assets (a) Actuarial accrued liability (b) Unfunded actuarial accrued liability (funding excess) (b) – (a) $ Funded ratio (a)/(b) Annual covered payroll (c) 633,475 444,438 402,809 164,682 (41,629) 79.4% 110.3% 5.3% 92 $ 798,157 $ 3,122,030 Unfunded actuarial accrued liability (funding excess) as a percentage of covered payroll (b) – (a) / (c) CORP Detention $ 3,670,869 0.0% Coconino County Notes to Financial Statements June 30, 2015 The actuarial methods and assumptions used are the same for all the PSPRS and CORP health insurance premium benefit plans (unless noted), and for the most recent valuation date are as follows: PSPRS and CORP – OPEB Funded Status Actuarial valuation date June 30, 2015 Actuarial cost method Entry age normal Amortization method Level percent closed Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Wage growth 21 years for unfunded 20 years for overfunded 7-year smoothed market value; 80%/120% 7.85% 4%–8% for PSPRS and 4%–7.25% for CORP 4% for PSPRS and CORP C. Elected Officials Retirement Plan Plan description – Elected officials and judges participate in the Elected Officials Retirement Plan (EORP). EORP administers a cost-sharing multiple-employer defined benefit pension plan and a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan for elected officials and judges who were members of the plan on December 31, 2013. This plan was closed to new members as of January 1, 2014. The PSPRS Board of Trustees governs the EORP according to the provisions of A.R.S. Title 38, Chapter 5, Article 3. The EORP issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on PSPRS’s Web site at www.psprs.com. Benefits provided – The EORP provides retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits are calculated on the basis of age, average yearly compensation, and service credit as follows: EORP Retirement and Disability Years of service and age required to receive benefit Final average salary is based on Initial membership date: Before January 1, 2012 On or after January 1, 2012 20 years any age 10 years age 62 5 years age 65 5 years any age* any years and age if disabled 10 years age 62 5 years age 65 any years and age if disabled Highest 36 consecutive months of last 10 years Highest 60 consecutive months of last 10 years 93 Coconino County Notes to Financial Statements June 30, 2015 EORP Initial membership date: Before January 1, 2012 On or after January 1, 2012 Benefit percent Normal Retirement 4% per year of service, not to exceed 80% 3% per year of service, not to exceed 75% Disability Retirement 80% with 10 or more years of service 40% with 5 to 10 years of service 20% with less than 5 years of service 75% with 10 or more years of service 37.5% with 5 to 10 years of service 18.75% with less than 5 years of service Retired Members 75% of retired member’s benefit 50% of retired member’s benefit Active Members and Other Inactive Members 75% of disability retirement benefit 50% of disability retirement benefit Survivor Benefit *With reduced benefits of 0.25% for each month early retirement precedes the member’s normal retirement age, with a maximum reduction of 30%. Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on excess investment earning. Contributions – State statutes establish active member and employer contribution requirements. Statute also appropriates $5 million annually through fiscal year 2043 for the EORP from the State of Arizona to supplement the normal cost plus an amount to amortize the unfunded accrued liability and designates a portion of certain court fees for the EORP. For the year ended June 30, 2015, active EORP members were required by statute to contribute 13 percent of the members’ annual covered payroll, and the County was required to contribute 23.5 percent of active EORP members’ annual covered payroll. The County’s contributions to the pension plan for the year ended June 30, 2015, were $398,499. No OPEB contributions were required or made for the year ended June 30, 2015. The County’s OPEB contributions for the current and 2 preceding years, all of which were equal to the required contributions, were as follows: EORP Year ended June 30 2015 2014 2013 94 Health Insurance Fund $ 27,154 18,087 Coconino County Notes to Financial Statements June 30, 2015 During fiscal year 2015, the County paid for EORP pension contributions as follows: 96.4 percent from the General Fund and 3.6 percent from major funds. Pension liability – At June 30, 2015, the County reported a liability for its proportionate share of the EORP’s net pension liability that reflected a reduction for the County’s proportionate share of the State’s appropriation for EORP. The amount the County recognized as its proportionate share of the net pension liability, the related state support, and the total portion of the net pension liability that was associated with the County were as follows: County’s proportionate share of the EORP net pension liability State’s proportionate share of the EORP net pension liability associated with the County Total $12,687,065 3,889,972 $16,577,037 The net pension liability was measured as of June 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. In February 2014, the Arizona Supreme Court affirmed a Superior Court ruling that a 2011 law that changed the mechanism for funding permanent benefit increases was unconstitutional. As a result, for the June 30, 2014, actuarial valuation, the plan changed benefit terms to reflect the prior mechanism for funding permanent benefit increases and revised actuarial assumptions to explicitly value future permanent benefit increases. The County’s proportion of the net pension liability as of June 30, 2013 and 2014 was based on the County’s actual contributions to the plan relative to the total of all participating employers’ actual contributions for the year ended June 30, 2014. The County’s proportion measured as of June 30, 2013 and 2014 was 1.892 percent. Pension expense and deferred outflows/inflows of resources – For the year ended June 30, 2015, the County recognized pension expense for EORP of $4,913,628 and revenue of $1,153,033 for the County’s proportionate share of the State’s appropriation to EORP. At June 30, 2015, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 95 Coconino County Notes to Financial Statements June 30, 2015 EORP Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments County contributions subsequent to the measurement date Total Deferred Outflows of Resources Deferred Inflows of Resources $ $ 55,747 3,433,416 240,537 398,499 3,887,662 $ $ 240,537 The $398,499 reported as deferred outflows of resources related to EORP pensions resulting from county contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to EORP pensions will be recognized in pension expense as follows: Year ending June 30 2016 $ 2017 2018 2019 1,949,289 1,419,605 (60,134) (60,134) Actuarial assumptions – The significant actuarial assumptions used to measure the total pension liability are as follows: EORP Actuarial valuation date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent benefit increase Mortality rates June 30, 2014 Entry age normal 7.85% 4.25% 4.0% Included RP-2000 mortality table projected to 2025 with projection scale AA Actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2011. 96 Coconino County Notes to Financial Statements June 30, 2015 The long-term expected rate of return on EORP pension plan investments was determined to be 7.85 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: EORP Target Allocation 2% 4% 4% 7% 8% 10% 11% 11% 13% 14% 16% 100% Asset Class Short term investments Absolute return Risk parity Fixed income Real assets GTAA Private equity Real estate Credit opportunities Non-U.S. equity U.S. equity Total Long-Term Expected Real Rate of Return 3.25% 6.75% 6.04% 4.75% 5.96% 5.73% 9.50% 6.50% 8.00% 8.63% 7.60% Discount rate – At June 30, 2014, the discount rate used to measure the EORP total pension liability was 5.67 percent, which was a decrease of 2.18 from the discount rate used as of June 30, 2013. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate, employer contributions will be made at the statutorily set rates, and state contributions will be made as currently required by statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be insufficient to make all projected future benefit payments of current plan members. Therefore, to determine the total pension liability for the plan, the long-term expected rate of return on pension plan investments of 7.85 percent was applied to periods of projected benefit payments through the year ended June 30, 2030. A municipal bond rate of 4.29 percent obtained from the 20-year Bond Buyer Index, as published by the Federal Reserve as of June 30, 2014, was applied to periods of projected benefit payments after June 30, 2030. Sensitivity of the County’s proportionate share of the EORP net pension liability to changes in the discount rate – The following table presents the County’s proportionate share of the net pension liability calculated using the discount rate of 5.67 percent, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (4.67 percent) or 1 percentage point higher (6.67 percent) than the current rate: 97 Coconino County Notes to Financial Statements June 30, 2015 EORP Rate County’s proportionate share of the net pension liability Current 1% Decrease 1% Increase Discount Rate (4.67%) (6.67%) (5.67%) $ 14,811,089 $ 12,687,065 $10,893,663 Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued EORP financial report. D. Postemployment Healthcare Plan Plan Description—Employees retiring from Coconino County service, who receive monthly income from any of the Arizona State individual retirement plans, are eligible to continue insurance coverage through the same plan as active employees and their beneficiaries up to the age of 65 through the Northern Arizona Public Employees Benefit Trust (NAPEBT). NAPEBT administers a cost-sharing multiple employer postemployment healthcare benefit plan; however, it is reported as an agent-multiple employer plan for financial reporting purposes as the plan assets are not dedicated solely to providing benefits to retirees and their beneficiaries. Coconino County is a member of NAPEBT and the benefits and premium rates are approved by the Trust and the Board of Supervisors on an annual basis for active and retired members. NAPEBT issues a publicly available financial report that may be obtained on their website. Although Coconino County does not explicitly pay a portion of the retirees’ premiums, because of the inclusion of this class in the insured pool, there is an implicit subsidy or “premium rate differential” that is incurred by the County. Funding Policy – The contribution requirements of plan members and the County are established and may be amended by the NAPEBT board. Eligible retirees up to the age of 65 have the option to participate in the healthcare plan that is currently being offered to active employees and must pay 100% of the premium less any reimbursement from the Arizona State individual retirement plans. The program is currently funded on a pay-as-yougo basis. Annual OPEB Cost and Net OPEB Obligation – The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligations for 2015 and the two preceding years were as follows: Fiscal Year Ended 6/30/2015 6/30/2014 6/30/2013 Annual OPEB Cost $ 996,848 949,983 1,128,014 Actual Contributions $ 93,243 133,882 50,817 98 Percentage of Annual OPEB Cost Contributed 9.35% 14.09% 4.50% Change in Net OPEB Obligation $ 903,605 816,101 1,077,197 Coconino County Notes to Financial Statements June 30, 2015 Components of Annual OPEB Costs and Net OPEB Obligation – The annual components of OPEB cost and net OPEB obligation as of June 30, 2015, were as follows: Annual required contribution (ARC) $ 1,086,643 Interest on existing net OPEB obligation $ 246,517 ARC adjustment $ (336,312) Increase in OPEB $ 903,605 Net OPEB Obligation $ 6,331,584 Funding Status and Funding Progress – The latest actuarial valuation done was as of July 1, 2013. The funded status of the plan as of June 30, 2015, was as follows: (1) (2) Actuarial Actuarial Actuarial (3) Valuation Funded ratio value of plan accrued Date (1) / (2) assets liability (AAL) 7/1/2013 $ $ 8,472,061 0.00% (4) Unfunded AAL (2) - (1) $ 8,472,061 (5) Covered payroll $ 49,547,980 (6) Unfunded AAL as a percentage of covered payroll (4) / (5) 17.10% Actuarial Methods and Assumptions – Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of the funding progress presented as required supplementary information provides multiyear trend information that shows whether the actuarial value of plan’s assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Projections of benefits are based on 1) the plan as the County and plan’s members understand it and include the types of benefits in force at the valuation date, and 2) the pattern of sharing benefit costs between the County and plan’s members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions used for most recent valuation date are as follows: 99 Coconino County Notes to Financial Statements June 30, 2015 Valuation Date Actuarial cost method Amortization method Remaining amortization period Investment rate of return Medicare coverage age Retirement and disability age Active members Retirees, beneficiaries, and dependents Asset Valuation method Inflation rate Projected salary increase Post-retirement benefits increase Healthcare cost trend rate July 1, 2013 Entry Age, Level Dollar 30-Year Amortization, level dollar, Open 30 years 4.50% 65 Based on the assumptions for the ASRS Defined Benefit valuation as of June 30, 2012 945 81 N/A. No assets in an OPEB trust N/A N/A N/A 7.50% graded down to ultimate rate of 5.0% over 5 years NOTE 11 – INTERFUND BALANCES AND ACTIVITY Interfund Receivables and Payables – Interfund balances at June 30, 2015, were as follows: The interfund balances resulted from time lags between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Payable to Public Public Health Flood Nonmajor Works/ Jail District Services Control Government General Fund HURF Fund Fund District Fund District Fund al Funds Internal Service Fund Total $3,622,018 $ 84,208 $ 4,802,149 103,228 196,328 3,018,503 40,714 7,849 297,034 Payable from General Fund Public Works/HURF Fund $ $ 2,737 $ 104,446 $ 988,740 94,041 Jail District Fund 248,471 Public Health Services District Fund 124,079 2,624,906 Flood Control District Fund 2,941,091 1,342,456 Nonmajor Governmental Funds 1,722,124 336,347 3,010 Internal Service Fund Total $ 500 513,361 146 $ 5,129,806 $1,681,540 $ 107,456 $ 100 13,744 137,823 619 4,284,166 10,881 2,586,223 146 989,240 $ 2,624,906 $ 4,279,467 $313,629 $15,126,044 Coconino County Notes to Financial Statements June 30, 2015 Interfund Transfers – Interfund transfers for the year ended June 30, 2015, were as follows: Transfer to General Fund Public Public Health Nonmajor Works/ Jail District Services Flood Control Governmental HURF Fund Fund District Fund District Fund Funds Total Transfer from General Fund $ $ 23,516 $2,542,147 $ 4,917,178 $ $ 1,661,713 $ 9,144,554 Public Works/HURF Fund 94,041 3,250,383 82,591 3,427,015 Jail District Fund 40,714 40,714 Public Health Services District Fund3,056 3,056 Flood Control District Fund 4,009 4,009 Nonmajor Governmental Funds 508,376 1,490,030 809,553 2,807,959 Total $605,473 $1,517,555 $ 2,542,147 $ 4,917,178 $ 3,250,383 $ 2,594,571 $15,427,307 Interfund transfers are used to move revenues from the fund that collects them to the fund that expends them. Advances From/To Other Funds Advances from/to other funds represent monies owed from the Toho Tolani Improvement District (nonmajor governmental funds) to the Forest Fees Revolving Fund (nonmajor governmental fund) to assist with attorney fees. The outstanding amount of these advances as of June 30, 2015 was $50,000. The General Fund has advanced $435,320 to the Toho Tolani Improvement District to assist with attorney fees, $12,942 to various County Road Improvement Districts to cover debt service payments and $1 million to the Flood Control District to provide cash to cover expenditures made for the catastrophic flooding. The $1 million advance to the Flood Control District is expected to be paid back in fiscal years 2017 through 2019. The advances to Toho Tolani are expected to be awarded by the Arizona Court of Appeals in fiscal year 2016. Advances from Forest Fees General Advances To Fund Fund Total Rio Arroyo $ $ 1,545 $ 1,545 Lupine 2,100 2,100 Oakwood Pines 1,783 1,783 Pinon Improvement 7,514 7,514 Flood Control 1,000,000 1,000,000 Toho Tolani 50,000 435,320 485,320 Total Advances From $ 50,000 $ 1,448,262 $ 1,498,262 101 Coconino County Notes to Financial Statements June 30, 2015 NOTE 12 – COUNTY TREASURER’S INVESTMENT POOL Arizona Revised Statutes require community colleges, school districts, and other local governments to deposit certain public monies with the County Treasurer. The Treasurer has a fiduciary responsibility to administer those and the County’s monies under her stewardship. The Treasurer invests, on a pool basis, all idle monies not specifically invested for a fund or program. In addition, the Treasurer determines the fair value of those pooled investments annually at June 30. The County Treasurer’s investment pool is not registered with the Securities and Exchange Commission as an investment company, and there is no regulatory oversight of its operations. The pool’s structure does not provide for shares, and the County has not provided or obtained any legally binding guarantees to support the value of the participants’ investments. The Treasurer allocates interest earnings to each of the pool’s participants. The deposits and investments the County holds are included in the County Treasurer’s investment pool, except for $1,863,786 of deposits, $439,933 of investments in mutual funds-debt, $307,502 in the State Treasurer’s Investment Pool #7, and $148,796 of investments in equities. Therefore, the deposit and investment risks of the Treasurer’s investment pool are substantially the same as the County’s deposit and investment risks. See Note 3 for the disclosure of the County’s deposit and investment risks. Details of each major investment classification follow: Investment Type U.S. agency securities Corporate bonds Negotiable CDs Commercial paper Municipal bonds Money market mutual funds Principal $ 102,499,103 35,389,818 11,350,210 5,983,524 5,900,727 3,020,000 102 Interest Rates 0.500-1.850% 0.779-3.625% 0.400-2.650% 0.480-1.220% 1.110-4.276% 0.01% Maturities 08/12/2015-01/23/2020 08/15/2015-01/15/2020 07/06/2015-07/23/2019 less than 1 year 7/01/2015-04/01/2020 less than 1 year Amount $ 102,388,897 35,036,474 11,391,475 5,983,524 5,870,571 3,020,000 Coconino County Notes to Financial Statements June 30, 2015 A condensed statement of the investment pool’s net position and changes in net position follows: Statement of Net Position Assets Net position Net position held in trust for: Internal participants External participants Total net position held in trust $ $ 196,061,116 196,061,116 $ 94,555,121 101,505,995 196,061,116 $ Statement of Changes in Net Position Total additions Total deletions Net increase Net position held in trust July 1, 2014 June 30, 2015 $ $ 354,845,986 346,700,500 8,145,486 187,915,630 196,061,116 NOTE 13 – MAINTENANCE OF EFFORT Coconino County is required to maintain statutory levels of support for the Coconino County Jail District and the Coconino County Public Health Services District. In accordance with A.R.S. Section 48-4024, Coconino County is required to make annual maintenance of effort payments (MOE) to the Coconino County Jail District, a special revenue fund type. The payments will be made through fiscal year 2027, and are determined by first establishing a base expenditure which was used as the initial fiscal year 1998 MOE payment. Subsequent payments are determined by adjusting the base expenditure by the annual change in the gross domestic product price deflator, obtained from the State of Arizona Economic Estimates Commission. These payments are recorded by the jail district as transfers. The MOE payment for fiscal year 2015 was $2,542,147. In accordance with A.R.S. Section 485802 Coconino County is required to maintain a specific level of expenditures for public health services. This is accomplished by transferring funds to the Public Health Services District, a special revenue fund type. The payment for fiscal year 2015 was $3,928,438. 103 THIS PAGE BLANK 104 REQUIRED SUPPLEMENTARY INFORMATION 105 Coconino County Required Supplementary Information Budgetary Comparison Schedule General Fund Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Property taxes County sales taxes Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Expenditures: General government Assessor Board of Supervisors Clerk of the Superior Court Community Development Community Initiatives County Attorney County Manager Facilities Finance/Budget Flagstaff Justice Court Fredonia Justice Court Human Resources Information Technology Legal Defender Non-departmental Page Justice Court Public Defender Recorder Superior Courts Treasurer Williams Justice Court Total general government $ Final 9,241,236 12,834,600 878,500 1,091,650 25,840,813 1,536,797 238,860 130,150 90,015 51,882,621 2,194,832 1,255,051 1,173,336 1,810,274 230,770 3,286,392 1,315,441 4,060,927 1,642,856 1,171,036 166,840 1,586,037 2,460,706 962,147 19,633,811 345,692 2,256,211 1,975,413 2,907,335 669,790 331,854 51,436,751 $ 9,241,236 12,834,600 878,500 1,091,650 25,842,153 1,536,797 238,860 130,150 90,015 51,883,961 2,194,832 1,257,143 1,173,336 1,840,530 222,864 3,257,993 1,315,441 4,376,589 1,642,856 1,184,643 169,887 1,608,170 2,466,861 966,147 19,405,135 355,624 2,256,211 1,975,413 3,101,382 669,790 344,958 51,785,805 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 106 Actual Amounts $ 8,974,992 13,744,308 669,503 1,300,142 26,782,924 1,789,308 386,158 185,737 189,457 54,022,529 1,069,265 937,833 1,123,919 1,461,209 113,056 3,028,872 1,079,298 3,018,424 1,336,735 1,169,612 166,301 1,124,117 2,140,498 1,158,263 1,168,340 361,946 2,192,567 1,844,271 3,321,973 557,102 343,794 28,717,395 Variance with Final Budget $ (266,244) 909,708 (208,997) 208,492 940,771 252,511 147,298 55,587 99,442 2,138,568 1,125,567 319,310 49,417 379,321 109,808 229,121 236,143 1,358,165 306,121 15,031 3,586 484,053 326,363 (192,116) 18,236,795 (6,322) 63,644 131,142 (220,591) 112,688 1,164 23,068,410 (continued) Coconino County Required Supplementary Information Budgetary Comparison Schedule General Fund (Continued) Year Ended June 30, 2015 Budgeted Amounts Original Public safety Adult Probation Constable Juvenile Probation Sheriff Total public safety Final Actual Amounts Variance with Final Budget 1,549,004 101,804 2,884,418 9,150,350 13,685,576 1,542,941 101,804 2,884,418 9,139,399 13,668,562 1,520,852 94,726 2,571,584 8,779,013 12,966,175 22,089 7,078 312,834 360,386 702,387 Highways and streets Information Technology 537,578 537,578 509,354 28,224 Health Information Technology 121,203 121,203 98,776 22,427 Welfare Community Services 1,019,066 1,027,123 1,003,175 23,948 Culture and recreation Parks and Recreation 2,298,970 2,348,145 2,309,376 38,769 Education School Superintendent Total expenditures 512,750 69,611,894 453,716 69,942,132 450,298 46,054,549 3,418 23,887,583 (17,729,273) (18,058,171) 7,967,980 26,026,151 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 205,161 (10,319,171) (10,114,010) 327,166 (10,095,932) (9,768,766) 605,473 (9,144,554) (8,539,081) 278,307 951,378 1,229,685 Net change in fund balances (27,843,283) (27,826,937) (571,101) 27,255,836 Excess (deficiency) of revenues over expenditures Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 27,259,345 (583,938) $ 27,259,345 (567,592) The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 107 $ 28,214,686 27,643,585 955,341 $ 28,211,177 Coconino County Required Supplementary Information Budgetary Comparison Schedule Public Works/HURF Fund Year Ended June 30, 2015 Budgeted Amounts Original Final 9,500 10,041,203 $ 3,500,000 9,500 10,041,203 Revenues: County sales taxes Licenses and permits Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues 50,000 50,000 10,100,703 Expenditures: Highways and streets Public Works Total expenditures Actual Amounts Variance with Final Budget 13,600,703 $ 3,778,550 30,969 11,594,209 1,947 185,315 4,113 15,595,103 278,550 21,469 1,553,006 1,947 135,315 4,113 1,994,400 17,365,818 17,365,818 20,865,818 20,865,818 13,158,153 13,158,153 7,707,665 7,707,665 Excess (deficiency) of revenues over expenditures (7,265,115) (7,265,115) 2,436,950 9,702,065 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 150,000 1,523,516 (1,513,430) 160,086 150,000 1,523,516 (3,477,354) (1,803,838) 110,958 1,517,555 (3,427,015) (1,798,502) Net changes in fund balances (7,105,029) (9,068,953) Fund balance, July 1, 2014 Fund balance, June 30, 2015 16,866,173 $ 9,761,144 16,866,173 $ 7,797,220 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 108 (39,042) (5,961) 50,339 5,336 638,448 9,707,401 20,352,593 $ 20,991,041 3,486,420 $ 13,193,821 Coconino County Required Supplementary Information Budgetary Comparison Schedule Jail District Fund Year Ended June 30, 2015 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final $ 12,697,600 12,000 1,407,483 193,057 $ 12,697,600 12,000 1,407,483 193,057 13,600 14,310,140 14,323,740 $ 13,576,136 1,219 897,899 154,205 13,600 2,729 14,645,788 17,848,643 17,848,643 18,289,263 18,289,263 13,514,000 13,514,000 4,775,263 4,775,263 Excess (deficiency) of revenues over expenditures (3,538,503) (3,965,523) 1,131,788 5,097,311 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 2,545,028 (41,979) 2,503,049 2,545,028 (56,878) 2,488,150 2,542,147 (40,714) 2,501,433 (1,035,454) (1,477,373) 3,633,221 Revenues: County sales taxes Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Expenditures: Public safety Sheriff Total expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 16,166,579 $ 15,131,125 16,166,579 $ 14,689,206 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 109 15,970,715 $ 19,603,936 $ 878,536 (10,781) (509,584) (38,852) 2,729 322,048 (2,881) 16,164 13,283 5,110,594 $ (195,864) 4,914,730 Coconino County Required Supplementary Information Budgetary Comparison Schedule Public Health Services District Fund Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Property taxes County sales taxes Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: Public safety Medical Examiner Health Health Department Welfare Community Services Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources and (uses) Net change in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 3,836,210 Actual Amounts Variance with Final Budget 3,836,210 $ $ 717,830 717,830 4,556,970 285,688 12,340 49,754 900 9,459,692 4,875,796 285,688 12,340 49,754 214,042 9,991,660 3,740,930 42 818,425 300 3,869,962 605,451 10,245 113,804 48,788 9,207,947 684,958 684,958 685,206 13,286,853 13,614,744 12,992,291 622,453 142,850 142,850 137,168 5,682 14,114,661 14,442,552 13,814,665 627,887 (4,654,969) (4,450,892) (4,606,718) (155,826) 4,826,555 (21,203) 4,805,352 4,851,555 (21,203) 4,830,352 4,917,178 (3,056) 4,914,122 65,623 18,147 83,770 150,383 379,460 307,404 (72,056) 1,813,800 1,964,183 $ Final $ 1,813,800 2,193,260 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 110 $ 1,683,133 1,990,537 (95,280) 42 100,595 300 (1,005,834) 319,763 (2,095) 64,050 (165,254) (783,713) (248) $ (130,667) (202,723) Coconino County Required Supplementary Information Budgetary Comparison Schedule Flood Control District Fund Year Ended June 30, 2015 Budgeted Amounts Revenues: Property taxes Licenses and permits Intergovernmental Charges for services Investment earnings Contributions Total revenues Expenditures: Public Safety Flood Control Total expenditures Excess (deficiency) of revenues over expenditures Original Final $ 2,552,722 $ 2,552,722 17,430,855 Fund balance, July 1, 2014 Fund balance, June 30, 2015 Variance with Final Budget 17,430,855 $ 2,421,758 1,150 3,043,812 (130,964) 1,150 (14,387,043) 20,000 10,404 20,013,981 20,000 10,404 20,013,981 4 10,157 5,476,881 (19,996) (247) (14,537,100) 22,846,721 22,846,721 22,861,091 22,861,091 9,809,570 9,809,570 13,051,521 13,051,521 (2,832,740) (2,847,110) (4,332,689) (1,485,579) 1,338,448 3,302,372 1,338,448 3,302,372 3,250,383 (4,009) 3,246,374 (4,009) (4,009) 455,262 (1,086,315) (1,541,577) 1,673,644 $ 2,128,906 (2,034,628) $ (3,120,943) (3,708,272) $ (5,249,849) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Actual Amounts (1,494,292) $ 1,673,644 179,352 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 111 Coconino County Required Supplementary Information Notes to Budgetary Comparison Schedules June 30, 2015 NOTE 1 – BUDGETING AND BUDGETARY CONTROL A.R.S. requires the County to prepare and adopt a balanced budget annually for each governmental fund. The Board of Supervisors must approve such operating budgets on or before the third Monday in July to allow sufficient time for the legal announcements and hearings required for the adoption of the property tax levy on the third Monday in August. A.R.S. prohibits expenditures or liabilities in excess of the amounts budgeted. Expenditures may not legally exceed appropriations at the department level. In certain instances, transfers of appropriations between departments or from the contingency account to a department may be made upon the Board of Supervisors’ approval. With the exception of the General Fund and the Public Health Services District Fund, each fund includes only one department. NOTE 2 – BUDGETARY BASIS OF ACCOUNTING The County’s budget is prepared on a basis consistent with generally accepted accounting principles. NOTE 3 – EXPENDITURES IN EXCESS OF APPROPRIATIONS For the year ended June 30, 2015, expenditures exceeded final budget amounts at the department level (the legal level of budgetary control) as follows: Fund/Department General Fund Superior Courts Legal Defender Page Justice Court Public Health Services District Fund Medical Examiner Excess $ 220,591 192,116 6,322 248 Departments may exceed their department’s budget for various reasons, including unexpected events. When departments exceed their budget, this is addressed with the departments in their subsequent budget meetings with the County Manager and the Board of Supervisors. 112 Coconino County Required Supplementary Information Schedule of the County’s Proportionate Share of the Net Pension Liability Cost-Sharing Pension Plans June 30, 2015 Arizona State Retirement System County’s proportion of the net pension liability County’s proportionate share of the net pension liability County’s covered-employee payroll County’s proportionate share of the net pension liability as a percentage of its covered-employee payroll Plan fiduciary net position as a percentage of the total pension liability $ $ 164.15% 69.49% Corrections Officer Retirement Plan—Administrative Office of the Courts County’s proportion of the net pension liability County’s proportionate share of the net pension liability County’s covered-employee payroll County’s proportionate share of the net pension liability as a percentage of its covered-employee payroll Plan fiduciary net position as a percentage of the total pension liability $ $ See accompanying notes to pension plan schedules. 113 Reporting Fiscal Year (Measurement Date) 2015 2014 through (2014) 2006 3.24% Information 7,259,716 not available 3,481,917 208.50% 58.59% Elected Officials Retirement Plan County’s proportion of the net pension liability County’s proportionate share of the net pension liability State's proportionate share of the net pension liability associated with the County Total County’s covered-employee payroll County’s proportionate share of the net pension liability as a percentage of its covered-employee payroll Plan fiduciary net position as a percentage of the total pension liability Reporting Fiscal Year (Measurement Date) 2015 2014 through 2006 (2014) 0.40% Information 58,741,596 not available 35,786,206 $ $ $ Reporting Fiscal Year (Measurement Date) 2015 2014 through (2014) 2006 1.89% Information 12,687,065 not available 3,889,972 16,577,037 1,740,635 728.88% 31.91% Coconino County Required Supplementary Information Schedule of Changes in the County’s Net Pension Liability and Related Ratios Agent Pension Plans June 30, 2015 Public Safety Personnel Retirement System - Sheriff Total pension liability Service cost Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending (a) Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending (b) County’s net pension liability (asset)—ending (a) – (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Reporting Fiscal Year (Measurement Date) 2015 2014 through 2006 (2014) Information $ 526,940 not available 2,499,646 1,149,553 40,499 5,497,276 (2,801,153) 6,912,761 32,979,729 $ 39,892,490 $ 1,717,418 342,096 1,251,743 (2,801,153) (10,081) 24,720 524,743 9,408,628 $ 9,933,371 $ 29,959,119 24.90% $ 3,069,559 County’s net pension liability (asset) as a percentage of covered-employee payroll See accompanying notes to pension plan schedules. 114 976.01% Coconino County Required Supplementary Information Schedule of Changes in the County’s Net Pension Liability and Related Ratios Agent Pension Plans June 30, 2015 Correction Officers Retirement Plan - Detention Total pension liability Service cost Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending (a) Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending (b) County’s net pension liability (asset)—ending (a) – (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Reporting Fiscal Year (Measurement Date) 2015 2014 through (2014) 2006 Information $ 536,007 not available 588,300 43,775 124,233 448,734 (437,813) 1,303,236 7,445,173 $ 8,748,409 $ 313,756 320,700 788,339 (437,813) (6,198) (67,789) 910,995 5,646,437 $ 6,557,432 $ 2,190,977 74.96% $ 3,669,661 County’s net pension liability (asset) as a percentage of covered-employee payroll See accompanying notes to pension plan schedules. 115 59.71% Coconino County Required Supplementary Information Schedule of County Pension Contributions June 30, 2015 Arizona State Retirement System Reporting Fiscal Year 2015 Statutorily required contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered-employee payroll County’s contributions as a percentage of covered-employee payroll $ 3,929,303 $ 3,929,303 $ $ 36,081,751 $ $ 35,786,206 10.89% Correction Officer Retirement Plan Administrative Office of the Courts 10.70% Reporting Fiscal Year 2015 Statutorily required contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered-employee payroll County’s contributions as a percentage of covered-employee payroll $ 525,370 $ 525,370 $ $ 3,530,713 $ $ 14.88% Elected Officials Retirement Plan 2013 through 2014 2006 503,137 Information not 503,137 available 3,481,917 14.45% Reporting Fiscal Year 2015 Statutorily required contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered-employee payroll County’s contributions as a percentage of covered-employee payroll 2013 through 2006 3,829,124 Information not 3,829,124 available 2014 $ 398,499 $ 398,499 $ $ 1,695,740 23.50% See accompanying notes to pension plan schedules. 116 $ $ 2013 2014 through 2006 403,131 Information not 403,131 available 1,740,635 23.16% Coconino County Required Supplementary Information Schedule of County Pension Contributions June 30, 2015 Public Safety Personnel Retirement System - Sheriff Reporting Fiscal Year 2015 Actuarially determined contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered-employee payroll County’s contributions as a percentage of covered-employee payroll $ 1,819,260 $ 1,819,260 $ $ 3,241,732 $ $ 56.12% Correction Officer Retirement Plan Detention 3,069,559 55.95% Reporting Fiscal Year 2015 Actuarially determined contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered-employee payroll County’s contributions as a percentage of covered-employee payroll 2013 through 2006 1,717,418 Information not 1,717,418 available 2014 $ 295,361 $ 295,361 $ $ 3,705,907 7.97% See accompanying notes to pension plan schedules. 117 $ $ 2013 through 2014 2006 313,756 Information not 313,756 available 3,669,661 8.55% Coconino County Required Supplementary Information Notes to Pension Plan Schedules June 30, 2015 Note 1 – Actuarially Determined Contribution Rates Actuarial determined contribution rates for PSPRS and CORP are calculated as of June 30 two years prior to the end of the fiscal year in which contributions are made. The actuarial methods and assumptions used to establish the contribution requirements are as follows: Actuarial cost method Amortization method Remaining amortization period as of the 2013 actuarial valuation Asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Wage growth Retirement age Mortality Entry age normal Level percent closed for unfunded actuarial accrued liability, open for excess 23 years for unfunded actuarial accrued liability, 20 years for excess 7-year smoothed market value; 20% corridor In the 2013 actuarial valuation, the investment rate of return was decreased from 8.0% to 7.85% In the 2013 actuarial valuation, projected salary increases were decreased from 5.0%–9.0% to 4.5%– 8.5% for PSPRS and from 5.0%–8.25% to 4.5%– 7.75% for CORP In the 2013 actuarial valuation, wage growth was decreased from 5.0% to 4.5% for PSPRS and CORP Experience-based table of rates that is specific to the type of eligibility condition. Last updated for the 2012 valuation pursuant to an experience study of the period July 1, 2006 - June 30, 2011. RP-2000 mortality table (adjusted by 105% for both males and females) 118 Coconino County Required Supplementary Information Schedule of Agent Retirement Plans’ and Coconino County Postemployment Healthcare Plan’s Funding Progress June 30, 2015 Valuation Date Actuarial Value of Assets (a) Actuarial Accrued Liability (AAL) (b) Unfunded AAL (UAAL) (b-a) Funded ratio (a/b) Annual Covered Payroll (c) UAAL as a % of Covered Payroll ((b-a)/c)) PSPRS Sheriff 6/30/2015 6/30/2014 6/30/2013 633,475 587,700 798,157 776,530 830,335 164,682 188,830 830,335 79.37% 75.68% 0.00% 3,122,030 2,950,184 2,805,923 5.27% 6.40% 29.59% CORP Detention 6/30/2015 6/30/2014 6/30/2013 444,438 400,984 402,809 366,967 327,222 (41,629) (34,017) 327,222 110.33% 109.27% 0.00% 3,670,869 3,488,706 3,691,861 0.00% 0.00% 8.86% 0.00% 0.00% 0.00% 49,547,980 48,579,979 51,641,941 17.10% 20.40% 15.27% Coconino County Postemployment Healthcare 7/1/2013 8,472,061 7/1/2011 9,911,098 7/1/2009 7,887,569 Plan 8,472,061 9,911,098 7,887,569 See accompanying notes to schedule of agent OPEB plans’ funding progress. 119 Coconino County Required Supplementary Information Notes to Schedule of Agent Retirement Plans’ and Coconino County Postemployment Healthcare Plan’s Funding Progress June 30, 2015 Note 1 – Actuarial Information Available New actuarial measurements are required by GASB 45 to be made biennially for the Coconino County Postemployment Healthcare Plan. The County used the most recent actuarial valuation, since the full actuarial valuation as of July 1, 2015 was not available. Note 2 – Factors That Affect the Identification of Trends Beginning in fiscal year 2014, PSPRS and CORP established separate funds for pension benefits and health insurance premium benefits. Previously, the plans recorded both pension and health insurance premium contributions in the same Pension Fund. During fiscal year 2014, the plans transferred prior-year health insurance premium benefit contributions that exceeded benefit payments from each plan’s Pension Fund to the new Health Insurance Fund. 120 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS 121 THIS PAGE BLANK 122 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2015 Special Revenue Funds Adult Probation Grants and Fees – accounts for various Adult Probation programs provided by a combination of grants and fees. Assessor Storage and Retrieval – accounts for the collection and use of a special recording surcharge, not to exceed four dollars, to be used to convert the assessor’s property information and storage retrieval system to micrographics or computer automation, as established by A.R.S. 11-269.06. Career Center Grants – accounts for various federal and state employment grants, such as the Workforce Investment Act and the Youthbuild Program. Clerk of the Superior Court Grants and Fees – accounts for various Clerk of the Court programs provided by a combination of grants and fees. Community Services Grants and Fees – accounts for various public assistance programs provided by a combination of grants and fees. Conciliation Court – this program provides a means for the reconciliation of spouses and the amicable settlement of domestic and family controversies. This program is funded by fees collected under A.R.S. 25-311. County Attorney Grants and Fees – accounts for various County Attorney programs funded by a combination of fees, grants and forfeiture. Programs included AntiRacketeering, Attorney Enhancement and Victim Rights. County Improvement Districts – Special Revenue – accounts for the operation of various Road Maintenance Districts and the Kachina Village Water and Wastewater operations. County Library District – accounts for the provision and maintenance of libraries and library services through the County. Funded by a secondary property tax levy. Emergency Services Grants – accounts for various federal and state grants that fund purchases of equipment and disaster planning and training. Inmate Welfare – accounts for funds held in trust for the benefit and welfare of inmates, established under A.R.S. 31-121. Revenues are derived from sales of commissary items to inmates and pay phone usage. Jail Enhancement – accounts for state funds established under A.R.S. 41-2401.D.9. to be used to enhance county jail facilities and operations. Justice Courts Grants and Fees – accounts for various Justice Court programs provided by a combination of grants and fees Juvenile Court Grants and Fees – accounts for various Juvenile Probation programs, including Juvenile Court, provided by a combination of grants and fees 123 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2015 Legal Defender Grants and Fees – accounts for various Legal Defender programs provided by a combination of grants and fees National Forest Fees – accounts for funds received under the federal Secure Rural Schools and Community Self-Determination Act of 2000. These funds may be used to fund schools, roads, search and rescue, wildfire protection, and wildlife protection. Parks and Recreation Grants and Fees – accounts for various parks programs funded by federal and state grants, fees and General Fund transfers. These programs include the County Fair and the County Horse Races. Public Defender Grants and Fees – accounts for various Public Defender programs provided by a combination of grants and fees Recorder Storage and Retrieval – accounts for a recording surcharge, established by A.R.S. 11-475.01, to be used to defray the cost of converting the Recorder’s document and storage retrieval system to micrographics or computer automation. School Superintendent Grants and Fees – accounts for various Schools programs, including the Accommodation School, provided by a combination of grants and fees Sheriff Grants and Fees – accounts for various Sheriff programs provided by a combination of grants and fees Solid Waste – accounts for the costs of providing solid waste services, including the operation of transfer stations and payments for the use of the City of Flagstaff landfill. Funded by a combination of grants, fees and General Fund transfers. Superior Court Grants and Fees – accounts for various Superior Court programs provided by a combination of grants and fees Taxpayer Information Fund – accounts for fees collected by the County Treasurer, established by A.R.S. 11-495, to be used to upgrade an automated taxpayer information system. Other Special Revenue Funds – accounts for other small grants and fees. Debt Service Fund County Improvement Districts – Debt Service – accounts for special assessment collected for the payment of principal and interest on the revenue bonds issued for special assessment bonds issued by various county improvement districts, or National Forest Fees loans, for road improvements. 124 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2015 Capital Projects Funds Accommodation School – accounts for various grants used to fund capital improvements for the Accommodation School. County Improvement Districts – Capital Projects – accounts for the construction of road improvements in various county improvement districts, funded by special assessment bonds, assessment payments by benefiting property owners and National Forest Fees contributions or loans. Other Capital Projects Funds – accounts for other small capital projects funded by fees, grants and transfers from the General Fund. 125 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2015 Special Revenue Assessor Storage and Retrieval Adult Probation Grants and Fees Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities $ 694,377 $ 9,741 Career Center Grants Clerk of the Superior Court Grants and Fees $ $ 3,420 1 1,815 1,262 $ $ 18,273 52,089 1,709 771,130 23,931 75,804 380,736 588 $ 9,741 $ $ 111 $ 20,230 12,086 45,134 165,517 472 212,939 19,837 21,810 6,409 $ 387,733 $ 49 2,181 159,971 132,051 111 1,804 203,422 2,230 1,709 637,370 9,630 472 9,045 385,503 639,079 9,630 9,517 385,503 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances $ 771,130 126 $ 9,741 $ 212,939 $ 387,733 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2015 Nonmajor Governmental Funds (Continued) June 30, 2015 Special Revenue Community Services Grants and Fees Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities $ Conciliation Court $ 61,311 County Attorney Grants and Fees $ $ 36,245 407 $ $ 588,267 84,374 702 709,995 26,917 23,957 1,608,511 106,440 92 1,285 $ 62,688 $ $ 3,843 968 $ 627,140 490 2,467 96,385 67,387 4,240 840,798 20,637 24,108 14,104 $ 1,738,055 $ 157,698 15,200 15,568 2,230 21,402 23,100 699,416 4,811 53,780 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 198,228 5,298 5,298 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 204,367 439,933 27,996 County Improvement Districts-Special Revenue $ 702 9,877 57,877 4,240 777,480 1,539,827 10,579 57,877 781,720 1,539,827 709,995 127 $ 62,688 $ 840,798 $ 1,738,055 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2015 Nonmajor Governmental Funds (Continued) June 30, 2015 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities County Library District Emergency Services Grants Inmate Welfare Jail Enhancement $ $ $ $ 148,239 205 132,563 85,824 $ 286,196 $ Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 128 1,227 1,214 287 1,016 218,387 $ 233,456 $ $ 1,171 6,249 $ 8,435 4,852 $ 3,771 10,915 297,061 775 3,000 304,481 14,062 6,771 85,298 85,298 690 690 (171,392) 166,322 286,196 640,728 $ 166,322 $ 221,027 400 19,604 5,292 668,254 119,874 119,874 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 137,752 (171,392) $ 218,387 $ 219,394 5,292 655,501 219,394 660,793 233,456 $ 668,254 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2015 Nonmajor Governmental Funds (Continued) June 30, 2015 Special Revenue Justice Courts Grants and Fees Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities $ 705,339 Juvenile Court Grants and Fees Legal Defender Grants and Fees National Forest Fees $ $ $ 913,154 6,748 3,556,628 106 1,063 1,621 11 5,551 50,000 3,000 18,081 5,506 5,164 5,613 607 1,780,498 $ 727,589 $ 925,445 $ $ 21,481 3,356 $ 14,793 56,299 $ 12,979 $ 5,392,677 $ 2 276,369 9,162 25,201 5,489 607,444 301,206 105,455 5,489 607,446 426,383 819,990 7,490 4,785,231 426,383 819,990 7,490 4,785,231 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances $ 727,589 129 $ 925,445 $ 12,979 $ 5,392,677 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2015 Nonmajor Governmental Funds (Continued) June 30, 2015 Special Revenue Parks and Recreation Grants and Fees Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities $ 567,443 Public Defender Grants and Fees $ 82,627 589 15 919 132 $ 605,275 $ 50,516 4,985 775 139,050 $ 15,505 3,850 $ 7,308 36,324 Recorder Storage and Retrieval $ 328,536 School Superintendent Grants and Fees $ 21,687 496 3,606 14,705 $ 343,737 $ $ 4 $ 193,980 826,408 1,243 1,670,267 204,500 17,300 12,004 50,516 49,344 1,444 4,466 35,825 57,824 49,348 223,244 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 270,346 270,346 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 623,343 $ 569,450 775 80,451 294,389 1,243 1,175,434 569,450 81,226 294,389 1,176,677 605,275 130 $ 139,050 $ 343,737 $ 1,670,267 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2015 Nonmajor Governmental Funds (Continued) June 30, 2015 Special Revenue Sheriff Grants and Fees Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities $ $ 3,985 $ 15 291,767 Taxpayer Information Fund $ 511 68,213 82,895 70,668 330 675 297,860 85,981 $ 620,439 $ 383,856 $ $ 179,916 15,361 $ 119,705 16,347 $ Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 257,541 10,810 1,787 562,746 44,463 10,820 111 $ 70,779 $ 1 35,122 247,787 22,935 230,399 383,839 78,218 1 355,569 17 1,787 482,741 70,778 355,569 17 484,528 70,778 34,471 34,471 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 464,671 Solid Waste Superior Court Grants and Fees $ 620,439 131 $ 383,856 $ 562,746 $ 70,779 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2015 Nonmajor Governmental Funds (Continued) June 30, 2015 Special Revenue Other Special Revenue Funds Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities $ $ 242,314 437 10,052 190,165 755 113,136 3,400 $ 113,574 $ $ 103 2,881 $ 446,686 12,942 110,532 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 1 Debt Service County Improvement Districts-Debt Service $ 113,516 12,942 46 46 191,511 191,511 12 242,233 12 242,233 113,574 132 $ 446,686 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2015 Nonmajor Governmental Funds (Continued) June 30, 2015 Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities Accommodation School Capital Projects County Improvement Districts-Capital Projects Other Capital Projects Funds $ $ $ 85,558 133 624,667 73,004 1,261 2,422,186 72,014 591,142 $ 91,554 $ 698,932 $ $ 1 $ 1 $ 3,089,125 148,239 187,577 190,165 27,442 50,000 485,320 32,100 485,321 4,279,467 1,577,824 16,220 $ 22,034,082 $ 32,100 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 877,654 291,339 498,262 2,586,223 37,287 44,502 6,270 4,341,537 707,534 707,534 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances $ 14,944,201 584,951 27,996 3,783 994 4,869 1 Total Nonmajor Governmental Funds $ 91,553 213,611 3,057,025 16,220 17,140,183 (171,392) 91,553 213,611 3,057,025 16,985,011 3,089,125 $ 22,034,082 91,554 133 $ 698,932 $ Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2015 Special Revenue Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Adult Probation Grants and Fees $ Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures $ Career Center Grants $ Clerk of the Superior Court Grants and Fees $ 14,250 2,240,759 619,188 6,576 1,014,609 4 53,782 3,496 2,866,523 1,014,613 71,528 7,667 2,890,199 101,015 1,061,546 2,890,199 Excess (deficiency) of revenues over expenditures 7,667 (23,676) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) Net changes in fund balances Fund balances, July 1, 2014 Fund balances, June 30, 2015 Assessor Storage and Retrieval (7,667) 101,015 (46,933) (29,487) 2,444 44,950 6,409 2,444 44,950 6,409 (1,983) (23,078) (21,232) $ 1,061,546 660,311 639,079 (7,667) $ 134 17,297 9,630 $ 11,500 9,517 $ 408,581 385,503 Coconino County Coconino County tatement of Revenues, Expenditures, Combining Statement of Revenues, Expenditures, d Changes in Fund Balances and Changes in Fund Balances nmajor Governmental Funds Nonmajor Governmental Funds (Continued) Year Ended June 30, 2015 Year Ended June 30, 2015 Special Revenue Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Community Services Grants and Fees $ $ 1,013,603 181,533 2,048 129,277 18,358 1,344,819 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures (10,151) County Attorney Grants and Fees $ $ 11,400 9,839 45,706 557 273,985 420,229 36,926 12,900 1,180,310 13,939 56,102 744,040 23,848 1,229,497 67,013 1,070,420 1,275,248 1,889,503 1,879,352 Excess (deficiency) of revenues over expenditures 67,013 (534,533) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) Net changes in fund balances Fund balances, July 1, 2014 Fund balances, June 30, 2015 Conciliation Court County Improvement Districts-Special Revenue (10,911) 108,078 (272,424) 463,706 (164,346) 81,406 10,579 (10,911) $ 135 68,788 57,877 1,275,248 (326,380) 17,000 581,267 (134,561) (70,827) $ 1,070,420 (45,751) (490,726) $ 1,272,446 781,720 (45,751) $ 1,585,578 1,539,827 Coconino County Coconino County tatement of Revenues, Expenditures, Combining Statement of Revenues, Expenditures, d Changes in Fund Balances and Changes in Fund Balances nmajor Governmental Funds Nonmajor Governmental Funds (Continued) Year Ended June 30, 2015 Year Ended June 30, 2015 Special Revenue Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues County Library District $ 3,828,643 43 $ Inmate Welfare Jail Enhancement $ $ 77,141 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 218,459 84,368 1,871 4,563 84,104 804 5,692 3,917,353 77,945 133,092 219,331 224,151 352,308 268,914 171,414 352,308 268,914 171,414 (274,363) (49,583) 52,737 (49,583) 52,737 3,835,523 3,835,523 Excess (deficiency) of revenues over expenditures 81,830 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 127,388 (99,153) Net changes in fund balances Fund balances, July 1, 2014 Fund balances, June 30, 2015 Emergency Services Grants $ (99,153) 127,388 (17,323) (146,975) 183,645 166,322 $ 136 (24,417) (171,392) $ 268,977 219,394 $ 608,056 660,793 Coconino County Coconino County tatement of Revenues, Expenditures, Combining Statement of Revenues, Expenditures, d Changes in Fund Balances and Changes in Fund Balances nmajor Governmental Funds Nonmajor Governmental Funds (Continued) Year Ended June 30, 2015 Year Ended June 30, 2015 Special Revenue Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Justice Courts Grants and Fees $ Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures $ Legal Defender Grants and Fees $ 20,655 34,605 443,576 5,571 2,070,648 78,083 8,792 504,407 194 2,157,717 210,120 National Forest Fees $ 2,091 3,146,173 66 39,147 2,157 3,185,320 2,632 2,177,865 1,365,675 210,120 Excess (deficiency) of revenues over expenditures 2,177,865 294,287 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) $ 2,632 (20,148) 4,305 124 15,156 (15,843) (351) 137 $ 835,833 819,990 1,819,645 5,613 (5,489) (279,131) 411,227 426,383 1,365,675 (475) 4,305 (279,131) Net changes in fund balances Fund balances, July 1, 2014 Fund balances, June 30, 2015 Juvenile Court Grants and Fees $ 7,841 7,490 (1,772,682) (1,772,682) 46,963 $ 4,738,268 4,785,231 Coconino County Coconino County tatement of Revenues, Expenditures, Combining Statement of Revenues, Expenditures, d Changes in Fund Balances and Changes in Fund Balances nmajor Governmental Funds Nonmajor Governmental Funds (Continued) Year Ended June 30, 2015 Year Ended June 30, 2015 Special Revenue Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Parks and Recreation Grants and Fees $ $ 17,167 18,550 639,149 School Superintendent Grants and Fees $ 750 90,258 119,483 2,432 17,917 212,173 21,960 73,774 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 4,640,577 453,683 21,960 73,774 185,466 (4,043) 138,399 (106,150) 50,516 (50,516) (49,344) (106,150) Net changes in fund balances 79,316 $ 490,134 569,450 138 8 4,018,561 56,691 19,424 48,148 123,666 4,266,498 453,683 Excess (deficiency) of revenues over expenditures Fund balances, July 1, 2014 Fund balances, June 30, 2015 $ 181,064 435,251 4,284 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures Recorder Storage and Retrieval Public Defender Grants and Fees (4,043) $ 85,269 81,226 $ 4,640,577 (374,079) 48,530 (49,344) 48,530 89,055 (325,549) 205,334 294,389 $ 1,502,226 1,176,677 Coconino County Coconino County tatement of Revenues, Expenditures, Combining Statement of Revenues, Expenditures, d Changes in Fund Balances and Changes in Fund Balances nmajor Governmental Funds Nonmajor Governmental Funds (Continued) Year Ended June 30, 2015 Year Ended June 30, 2015 Special Revenue Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Sheriff Grants and Fees $ Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures $ 572,984 81,931 3,296 2,100 258,854 109,254 660,311 368,108 Taxpayer Information Fund $ $ 176,575 163,542 3,828 12,385 1,407 357,737 826,883 13,757 612 14,369 813,786 11,401 665,821 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) Net changes in fund balances Fund balances, July 1, 2014 Fund balances, June 30, 2015 Solid Waste Superior Court Grants and Fees $ 826,883 665,821 813,786 11,401 (166,572) (297,713) (456,049) 2,968 269,153 297,714 343,926 (6,409) 269,153 297,714 337,517 102,581 1 252,988 355,569 139 $ 16 17 (118,532) $ 603,060 484,528 2,968 $ 67,810 70,778 Coconino County Coconino County tatement of Revenues, Expenditures, Combining Statement of Revenues, Expenditures, d Changes in Fund Balances and Changes in Fund Balances nmajor Governmental Funds Nonmajor Governmental Funds (Continued) Year Ended June 30, 2015 Year Ended June 30, 2015 Special Revenue Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Other Special Revenue Funds $ Debt Service County Improvement Districts-Debt Service $ 126,034 6,315 4,304 6,315 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 130,338 52,132 67,319 105,144 24,582 129,726 119,451 Excess (deficiency) of revenues over expenditures (113,136) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 612 113,136 113,136 Net changes in fund balances Fund balances, July 1, 2014 Fund balances, June 30, 2015 612 $ 12 12 140 $ 241,621 242,233 Coconino County Coconino County tatement of Revenues, Expenditures, Combining Statement of Revenues, Expenditures, d Changes in Fund Balances and Changes in Fund Balances nmajor Governmental Funds Nonmajor Governmental Funds (Continued) Year Ended June 30, 2015 Year Ended June 30, 2015 Revenues: Property taxes County sales taxes Special assessments Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Accommodation School Capital Projects County Improvement Districts-Capital Projects Other Capital Projects Funds Total Nonmajor Governmental Funds $ $ $ $ 771 7,195 20,211 60,838 7,195 20,211 3,828,651 43 137,434 308,890 15,623,686 3,709,696 172,329 276,818 319,115 24,376,662 597,420 2,421,769 6,687,583 67,319 1,941,069 2,951,049 4,289,206 6,006,252 646,291 597,420 105,144 24,582 25,140,264 60,067 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 48,871 48,871 Excess (deficiency) of revenues over expenditures 11,967 7,195 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) Net changes in fund balances Fund balances, July 1, 2014 Fund balances, June 30, 2015 11,967 $ 79,586 91,553 141 7,195 $ 206,416 213,611 $ (577,209) (763,602) 591,142 (32,100) 17,000 2,594,571 (2,807,959) 559,042 (196,388) (18,167) (959,990) 3,075,192 3,057,025 $ 17,945,001 16,985,011 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Adult Probation Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Public safety Adult Probation Total expenditures 1,994,677 582,000 11,350 608,966 3,196,993 $ 3,659,312 3,659,312 Excess (deficiency) of revenues over expenditures 2,336,876 582,000 11,350 448,101 3,378,327 $ 3,652,748 3,652,748 (462,319) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Actual Amounts Final (274,421) 2,240,759 619,188 6,576 Variance with Final BudgetPositive (Negative) $ 2,866,523 (96,117) 37,188 (4,774) (448,101) (511,804) 2,890,199 2,890,199 762,549 762,549 (23,676) 250,745 205,553 2,444 2,444 205,553 2,444 2,444 Net changes in fund balances (256,766) (274,421) (21,232) 253,189 Fund balance, July 1, 2014 Fund balance, June 30, 2015 453,372 196,606 453,372 178,951 660,311 639,079 206,939 460,128 $ 142 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Assessor Storage and Retrieval Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Total revenues $ Expenditures: General government Assessor Total expenditures Actual Amounts Final $ $ Variance with Final BudgetPositive (Negative) $ 23,921 23,921 17,296 17,296 7,667 7,667 9,629 9,629 (23,921) (17,296) (7,667) 9,629 Net changes in fund balances (23,921) (17,296) (7,667) 9,629 Fund balance, July 1, 2014 Fund balance, June 30, 2015 23,921 23,921 6,625 17,297 9,630 (6,624) 3,005 Excess (deficiency) of revenues over expenditures $ $ 143 $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Career Center Grants Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Welfare Career Center Total expenditures Actual Amounts Final 1,233,824 $ 1,370,200 $ 1,233,824 1,370,200 1,014,609 4 1,014,613 1,278,774 1,278,774 1,415,150 1,415,150 1,061,546 1,061,546 Excess (deficiency) of revenues over expenditures (44,950) (44,950) (46,933) Other financing sources (uses): Transfers in Total other financing sources (uses) 44,950 44,950 44,950 44,950 44,950 44,950 Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 Variance with Final BudgetPositive (Negative) $ 353,604 353,604 (1,983) (1,983) $ 2,836 2,836 144 $ 2,836 2,836 $ 11,500 9,517 (355,591) 4 (355,587) (1,983) $ 8,664 6,681 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Clerk of the Superior Court Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Fees, fines, and forfeits Charges for services Investment earnings Total revenues $ Expenditures: General government Clerk of the Superior Court Total expenditures Actual Amounts Final 100,000 48,100 4,500 152,600 $ 100,000 48,100 4,500 152,600 $ 14,250 53,782 3,496 71,528 Variance with Final BudgetPositive (Negative) $ (85,750) 5,682 (1,004) (81,072) 173,177 173,177 173,177 173,177 101,015 101,015 72,162 72,162 Excess (deficiency) of revenues over expenditures (20,577) (20,577) (29,487) (8,910) Other financing sources (uses): Transfers in Total other financing sources (uses) 14,300 14,300 14,300 14,300 6,409 6,409 (7,891) (7,891) Net changes in fund balances (6,277) (6,277) (23,078) (16,801) Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 473,542 467,265 145 $ 473,542 467,265 $ 408,581 385,503 $ (64,961) (81,762) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Services Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: General government Facilities Welfare Community Services Total expenditures Excess (deficiency) of revenues over expenditures Actual Amounts Final 1,268,216 114,957 2,000 114,016 1,800 1,500,989 $ 1,309,597 120,825 2,000 114,016 1,800 1,548,238 35,729 36,004 2,314,860 2,350,589 2,311,448 2,347,452 (849,600) $ 1,013,603 181,533 2,048 129,277 18,358 1,344,819 Variance with Final BudgetPositive (Negative) $ (10,151) (295,994) 60,708 48 15,261 16,558 (203,419) 46,155 1,889,503 1,879,352 421,945 468,100 (799,214) (534,533) 264,681 17,000 (242,112) 32,214 (192,898) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 823,379 (333,549) 489,830 823,379 (166,775) 656,604 17,000 581,267 (134,561) 463,706 Net changes in fund balances (359,770) (142,610) (70,827) 71,783 Fund balance, July 1, 2014 Fund balance, June 30, 2015 242,674 (117,096) 242,674 100,064 81,406 10,579 (161,268) (89,485) $ 146 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Conciliation Court Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: General government Superior Courts Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ Actual Amounts Final 9,000 44,400 750 54,150 $ 9,000 44,400 750 54,150 $ 9,839 45,706 557 56,102 Variance with Final BudgetPositive (Negative) $ 839 1,306 (193) 1,952 84,735 84,735 84,735 84,735 67,013 67,013 17,722 17,722 (30,585) (30,585) (10,911) 19,674 (30,585) (30,585) (10,911) 19,674 67,399 36,814 147 $ 67,399 36,814 $ 68,788 57,877 $ 1,389 21,063 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Attorney Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: General government County Attorney Total expenditures Actual Amounts Final 650,000 484,959 37,000 15,450 1,187,409 $ 1,569,822 1,569,822 650,000 476,950 37,000 15,450 1,179,400 $ 1,569,822 1,569,822 273,985 420,229 36,926 12,900 744,040 Variance with Final BudgetPositive (Negative) $ 1,070,420 1,070,420 (376,015) (56,721) (74) (2,550) (435,360) 499,402 499,402 Excess (deficiency) of revenues over expenditures (382,413) (390,422) (326,380) 64,042 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 84,129 (31,908) 52,221 99,449 (275,666) (176,217) 108,078 (272,424) (164,346) 8,629 3,242 11,871 Net changes in fund balances (330,192) (566,639) (490,726) 75,913 Fund balance, July 1, 2014 Fund balance, June 30, 2015 478,219 148,027 478,219 (88,420) $ 148 $ $ 1,272,446 781,720 $ 794,227 870,140 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Special Revenue Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Special assessments Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Sanitation KVID Total expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 11,400 1,170,500 9,600 20,000 1,211,500 $ 1,529,170 1,529,170 Excess (deficiency) of revenues over expenditures $ Actual Amounts Final 11,400 1,170,500 9,600 20,000 1,211,500 $ 1,587,367 1,587,367 Variance with Final BudgetPositive (Negative) 11,400 1,180,310 13,939 23,848 1,229,497 9,810 4,339 3,848 17,997 1,275,248 1,275,248 312,119 312,119 (317,670) (375,867) (45,751) 330,116 (317,670) (375,867) (45,751) 330,116 1,189,745 872,075 149 $ 1,189,745 813,878 $ 1,585,578 1,539,827 $ 395,833 725,949 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Library District Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Property taxes County sales taxes Investment earnings Contributions Total revenues $ Actual Amounts Final 3,922,141 3,922,141 3,828,643 43 4,563 84,104 3,917,353 3,829,669 3,829,669 3,829,669 3,829,669 3,835,523 3,835,523 (5,854) (5,854) Excess (deficiency) of revenues over expenditures 92,472 92,472 81,830 (10,642) Other financing sources (uses): Transfers out Total other financing sources (uses) (92,472) (92,472) (92,472) (92,472) (99,153) (99,153) (6,681) (6,681) (17,323) (17,323) Expenditures: Culture and recreation Library District Total expenditures 3,922,141 $ 3,922,141 $ Variance with Final BudgetPositive (Negative) Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 100,594 100,594 150 $ 100,594 100,594 $ 183,645 166,322 $ $ (93,498) 43 4,563 84,104 (4,788) 83,051 65,728 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Emergency Services Grants Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Contributions Miscellaneous Total revenues $ Expenditures: Public safety County Manager Public Works Total expenditures Actual Amounts Final 191,470 $ 252,808 12,029,440 12,220,910 8,464,000 8,716,808 366,991 12,029,440 12,396,431 364,622 8,464,000 8,828,622 $ 77,141 804 352,308 (111,814) (274,363) Other financing sources (uses): Transfers in Total other financing sources (uses) 127,388 127,388 127,388 127,388 127,388 127,388 Net changes in fund balances (48,133) 15,574 (146,975) 48,240 107 151 $ 48,240 63,814 $ (24,417) (171,392) (175,667) 804 (8,464,000) (8,638,863) 12,314 8,464,000 8,476,314 352,308 (175,521) $ $ 77,945 Excess (deficiency) of revenues over expenditures Fund balance, July 1, 2014 Fund balance, June 30, 2015 Variance with Final BudgetPositive (Negative) (162,549) (162,549) $ (72,657) (235,206) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Inmate Welfare Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Public safety Sheriff Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ Actual Amounts Final 70,000 8,000 196,250 274,250 $ 208,000 8,000 196,250 412,250 $ 84,368 1,871 133,092 219,331 Variance with Final BudgetPositive (Negative) $ (123,632) (6,129) (63,158) (192,919) 595,774 595,774 370,774 370,774 268,914 268,914 101,860 101,860 (321,524) 41,476 (49,583) (91,059) (321,524) 41,476 (49,583) (91,059) 313,794 (7,730) 152 $ 313,794 355,270 $ 268,977 219,394 $ (44,817) (135,876) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Jail Enhancement Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Public safety Sheriff Total expenditures Actual Amounts Final 213,518 5,374 218,892 $ 213,518 5,374 218,892 $ 218,459 5,692 224,151 Variance with Final BudgetPositive (Negative) $ 4,941 318 5,259 657,900 657,900 662,385 662,385 171,414 171,414 490,971 490,971 (439,008) (443,493) 52,737 496,230 Net changes in fund balances (439,008) (443,493) 52,737 496,230 Fund balance, July 1, 2014 Fund balance, June 30, 2015 572,531 133,523 572,531 129,038 608,056 660,793 35,525 531,755 Excess (deficiency) of revenues over expenditures $ 153 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Justice Courts Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: General government Flagstaff Justice Court Fredonia Justice Court Page Justice Court Williams Justice Court Total expenditures Actual Amounts Final 38,700 15,600 411,155 13,720 479,175 $ 38,700 50,205 411,155 13,720 513,780 $ 20,655 34,605 443,576 5,571 504,407 Variance with Final BudgetPositive (Negative) $ (18,045) (15,600) 32,421 (8,149) (9,373) 270,220 18,001 28,604 56,342 373,167 253,126 18,001 28,604 56,342 356,073 167,624 8,126 12,752 21,618 210,120 85,502 9,875 15,852 34,724 145,953 Excess (deficiency) of revenues over expenditures 106,008 157,707 294,287 136,580 Other financing sources (uses): Transfers out Total other financing sources (uses) (255,594) (255,594) (255,594) (255,594) (279,131) (279,131) (23,537) (23,537) Net changes in fund balances (149,586) (97,887) 15,156 113,043 Fund balance, July 1, 2014 Fund balance, June 30, 2015 440,234 290,648 440,234 342,347 411,227 426,383 (29,007) 84,036 $ 154 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Juvenile Court Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Public safety Juvenile Probation Total expenditures Actual Amounts Final 2,114,242 51,310 17,722 72,000 2,255,274 $ 3,115,280 3,115,280 2,105,972 51,310 11,422 72,000 2,240,704 $ 3,019,600 3,019,600 2,070,648 78,083 8,792 194 2,157,717 Variance with Final BudgetPositive (Negative) $ 2,177,865 2,177,865 (35,324) 26,773 (2,630) (71,806) (82,987) 841,735 841,735 Excess (deficiency) of revenues over expenditures (860,006) (778,896) (20,148) 758,748 Other financing sources (uses): Transfers in Total other financing sources (uses) 126,201 126,201 52,651 52,651 4,305 4,305 (48,346) (48,346) (733,805) (726,245) (15,843) 710,402 Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 754,119 20,314 155 $ 754,119 27,874 $ 835,833 819,990 $ 81,714 792,116 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Legal Defender Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: General government Legal Defender Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ Actual Amounts Final 2,500 230 2,730 $ 2,500 230 2,730 2,455 2,455 2,455 2,455 275 275 $ 2,091 66 2,157 Variance with Final BudgetPositive (Negative) $ 2,632 2,632 (409) (164) (573) (177) (177) (475) (750) 4,907 (5,358) (451) 4,907 (5,539) (632) 5,613 (5,489) 124 706 50 756 (176) (357) (351) 6 5,482 5,306 156 $ 5,482 5,125 $ 7,841 7,490 $ 2,359 2,365 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual National Forest Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues Actual Amounts Final $ $ 5,000 5,000 $ 5,000 5,000 Expenditures: Education School Superintendent Total expenditures Excess (deficiency) of revenues over expenditures 5,000 5,000 Other financing sources (uses): Transfers out Total other financing sources (uses) (1,798,659) (1,798,659) (1,798,659) (1,798,659) Net changes in fund balances (1,793,659) (1,793,659) Fund balance, July 1, 2014 Fund balance, June 30, 2015 3,609,226 1,815,567 3,609,226 1,815,567 $ 157 $ 3,146,173 39,147 3,185,320 Variance with Final BudgetPositive (Negative) $ 1,365,675 1,365,675 (1,365,675) (1,365,675) 1,819,645 1,814,645 (1,772,682) (1,772,682) $ 3,146,173 34,147 3,180,320 25,977 25,977 46,963 1,840,622 4,738,268 4,785,231 1,129,042 2,969,664 $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parks and Recreation Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Actual Amounts Final 7,500 526,600 7,500 596,337 181,064 435,251 4,284 18,550 639,149 478,343 478,343 543,152 543,152 453,683 453,683 89,469 89,469 Excess (deficiency) of revenues over expenditures 48,257 53,185 185,466 132,281 Other financing sources (uses): Transfers out Total other financing sources (uses) (106,150) (106,150) (106,150) (106,150) (106,150) (106,150) (57,893) (52,965) 79,316 Expenditures: Culture and recreation Parks and Recreation Total expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 110,000 409,100 519,917 462,024 158 $ $ 179,737 409,100 519,917 466,952 $ Variance with Final BudgetPositive (Negative) $ 490,134 569,450 $ 1,327 26,151 4,284 11,050 42,812 132,281 $ (29,783) 102,498 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Defender Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: General government Public Defender Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ Actual Amounts Final 20,000 1,700 21,700 $ 20,000 1,700 21,700 $ 17,167 750 17,917 Variance with Final BudgetPositive (Negative) $ (2,833) (950) (3,783) 30,000 30,000 30,000 30,000 21,960 21,960 8,040 8,040 (8,300) (8,300) (4,043) 4,257 45,453 (45,453) 45,453 (45,453) 50,516 (50,516) 5,063 (5,063) (8,300) (8,300) (4,043) 4,257 73,918 65,618 159 $ 73,918 65,618 $ 85,269 81,226 $ 11,351 15,608 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Recorder Storage and Retrieval Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: General government Recorder Total expenditures Actual Amounts Final 48,665 130,000 400 179,065 $ 187,725 187,725 48,665 130,000 400 179,065 $ 187,725 187,725 90,258 119,483 2,432 212,173 147,059 (8,660) 138,399 Other financing sources (uses): Transfers out Total other financing sources (uses) (49,344) (49,344) (49,344) (49,344) (49,344) (49,344) Net changes in fund balances (58,004) (58,004) 89,055 228,092 170,088 160 $ 228,092 170,088 $ 41,593 (10,517) 2,032 33,108 113,951 113,951 (8,660) $ $ $ 73,774 73,774 Excess (deficiency) of revenues over expenditures Fund balance, July 1, 2014 Fund balance, June 30, 2015 Variance with Final BudgetPositive (Negative) 205,334 294,389 147,059 $ (22,758) 124,301 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual School Superintendent Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Property taxes Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: Education School Superintendent Total expenditures Excess (deficiency) of revenues over expenditures 4,681,119 40,000 350 42,000 60,000 4,823,469 $ 5,881,849 40,000 350 64,000 60,000 6,046,199 8 4,018,561 56,691 19,424 48,148 123,666 4,266,498 4,564,552 4,564,552 5,917,915 5,917,915 4,640,577 4,640,577 258,917 128,284 (374,079) (502,363) 62,512 62,512 48,530 48,530 13,982 13,982 190,796 (325,549) (516,345) Other financing sources (uses): Transfers in Total other financing sources (uses) Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 258,917 $ Actual Amounts Final 816,030 1,074,947 161 $ $ Variance with Final BudgetPositive (Negative) 816,030 1,006,826 $ 1,502,226 1,176,677 $ 8 (1,863,288) 16,691 19,074 (15,852) 63,666 (1,779,701) 1,277,338 1,277,338 $ 686,196 169,851 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Sheriff Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: Public safety Sheriff Total expenditures Actual Amounts Final 699,110 61,439 3,549 5,000 1,414,262 2,183,360 $ 2,404,363 2,404,363 895,540 61,439 3,549 5,000 1,134,562 2,100,090 $ 2,350,605 2,350,605 572,984 81,931 3,296 2,100 Variance with Final BudgetPositive (Negative) $ 660,311 (322,556) 20,492 (253) (2,900) (1,134,562) (1,439,779) 826,883 826,883 1,523,722 1,523,722 Excess (deficiency) of revenues over expenditures (221,003) (250,515) (166,572) 83,943 Other financing sources (uses): Transfers in Total other financing sources (uses) 82,411 82,411 326,755 326,755 269,153 269,153 (57,602) (57,602) Net changes in fund balances (138,592) 76,240 102,581 26,341 Fund balance, July 1, 2014 Fund balance, June 30, 2015 388,108 249,516 388,108 464,348 252,988 355,569 (135,120) (108,779) $ 162 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Solid Waste Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Total revenues $ Expenditures: Sanitation Public Works Total expenditures Actual Amounts Final 205,000 129,470 334,470 $ 316,655 129,470 446,125 Variance with Final BudgetPositive (Negative) $ 258,854 109,254 368,108 $ (57,801) (20,216) (78,017) 676,905 676,905 788,560 788,560 665,821 665,821 122,739 122,739 Excess (deficiency) of revenues over expenditures (342,435) (342,435) (297,713) 44,722 Other financing sources (uses): Transfers in Total other financing sources (uses) 342,435 342,435 342,435 342,435 297,714 297,714 (44,721) (44,721) Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 1 $ $ 163 $ 16 17 1 $ 16 17 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Superior Court Grants and Fees Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: General government Superior Courts Total expenditures Actual Amounts Final 185,785 166,000 2,500 9,000 10,000 373,285 $ 944,292 944,292 237,107 166,000 2,500 59,000 10,000 474,607 $ 1,036,492 1,036,492 176,575 163,542 3,828 12,385 1,407 357,737 105,836 (561,885) (456,049) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 348,233 (14,300) 333,933 348,234 (14,300) 333,934 343,926 (6,409) 337,517 (237,074) (227,951) (118,532) $ 526,197 289,123 164 $ 526,197 298,246 $ (60,532) (2,458) 1,328 (46,615) (8,593) (116,870) 222,706 222,706 (571,007) Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 813,786 813,786 Excess (deficiency) of revenues over expenditures Net changes in fund balances Variance with Final BudgetPositive (Negative) 603,060 484,528 (4,308) 7,891 3,583 109,419 $ 76,863 186,282 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Taxpayer Information Fund Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Charges for services Investment earnings Total revenues $ Expenditures: General government Treasurer Total expenditures Actual Amounts Final 16,500 1,250 17,750 $ 16,500 1,250 17,750 $ 13,757 612 14,369 Variance with Final BudgetPositive (Negative) $ (2,743) (638) (3,381) 31,000 31,000 31,000 31,000 11,401 11,401 19,599 19,599 (13,250) (13,250) 2,968 16,218 Net changes in fund balances (13,250) (13,250) 2,968 16,218 Fund balance, July 1, 2014 Fund balance, June 30, 2015 73,273 60,023 73,273 60,023 67,810 70,778 (5,463) 10,755 Excess (deficiency) of revenues over expenditures $ 165 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Special Revenue Funds Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Charges for services Total revenues $ Expenditures: General government Finance/Budget Highways and streets Public Works Total expenditures Actual Amounts Final 15,000 15,000 $ 15,000 15,000 $ 6,315 6,315 Variance with Final BudgetPositive (Negative) $ (8,685) (8,685) 55,371 55,371 52,132 3,239 62,737 118,108 62,737 118,108 67,319 119,451 (4,582) (1,343) Excess (deficiency) of revenues over expenditures (103,108) (103,108) (113,136) (10,028) Other financing sources (uses): Transfers in Total other financing sources (uses) 103,108 103,108 103,108 103,108 113,136 113,136 10,028 10,028 Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ $ 166 $ 12 12 $ 12 12 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Debt Service Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Special assessments Investment earnings Total revenues $ Expenditures: Debt service: Principal Interest and other charges Total expenditures Actual Amounts Final 173,681 $ 173,681 $ 173,681 173,681 126,034 4,304 130,338 149,079 24,602 173,681 149,079 24,602 173,681 105,144 24,582 129,726 43,935 20 43,955 612 612 612 612 Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ Variance with Final BudgetPositive (Negative) 480,867 480,867 167 $ 480,867 480,867 $ 241,621 242,233 $ $ (47,647) 4,304 (43,343) (239,246) (238,634) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parks and Open Spaces Tax Projects Fund Year Ended June 30, 2015 Budgeted Amounts Original Revenues: County sales taxes Intergovernmental Investment earnings Contributions Miscellaneous Total revenues $ 579,589 Actual Amounts Final $ 579,589 $ 997,627 5,496 129,855 Variance with Final BudgetPositive (Negative) $ 418,038 5,496 105,855 (2,100) (1,131) 526,158 24,000 2,100 1,972 607,661 24,000 2,100 1,972 607,661 841 1,133,819 13,565,896 13,565,896 14,260,175 14,260,175 635,177 635,177 13,624,998 13,624,998 (12,958,235) (13,652,514) 498,642 14,151,156 Net changes in fund balances (12,958,235) (13,652,514) 498,642 14,151,156 Fund balance, July 1, 2014 Fund balance, June 30, 2015 13,293,424 $ 335,189 $ 13,293,424 (359,090) 14,065,896 $ 14,564,538 772,472 $ 14,923,628 Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures 168 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Accommodation School Year Ended June 30, 2015 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ Actual Amounts Final 63,754 679 64,433 $ 63,754 679 64,433 $ 60,067 771 60,838 Variance with Final BudgetPositive (Negative) $ (3,687) 92 (3,595) 56,500 56,500 56,500 56,500 48,871 48,871 7,629 7,629 7,933 7,933 11,967 4,034 7,933 7,933 11,967 4,034 7,933 169 $ 7,933 $ 79,586 91,553 $ 79,586 83,620 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Capital Projects Year Ended June 30, 2015 Budgeted Amounts Original Actual Amounts Final Revenues: Investment earnings Total revenues $ 7,195 7,195 Variance with Final BudgetPositive (Negative) $ 7,195 7,195 Expenditures: Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 204,104 204,104 170 $ 204,104 204,104 $ 7,195 7,195 7,195 7,195 206,416 213,611 $ 2,312 9,507 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Capital Projects Funds Year Ended June 30, 2015 Budgeted Amounts Original Actual Amounts Final Revenues: Investment earnings Total revenues $ Expenditures: Capital outlay Total expenditures 20,211 20,211 Variance with Final BudgetPositive (Negative) $ 20,211 20,211 1,292,317 1,292,317 1,214,711 1,214,711 597,420 597,420 617,291 617,291 Excess (deficiency) of revenues over expenditures (1,292,317) (1,214,711) (577,209) 637,502 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 1,292,317 (32,100) 1,260,217 1,214,711 (32,100) 1,182,611 591,142 (32,100) 559,042 (623,569) (623,569) (32,100) (32,100) (18,167) 13,933 Net changes in fund balances Fund balance, July 1, 2014 Fund balance, June 30, 2015 $ 3,079,671 3,047,571 171 $ 3,079,671 3,047,571 $ 3,075,192 3,057,025 $ (4,479) 9,454 Coconino County Combining Statement of Fiduciary Net Position Investment Trust Funds June 30, 2015 Individual Investment Accounts Treasurer's Investment Pool Assets Cash and cash equivalents Interest and dividends receivable Total assets $ 101,311,196 184,139 101,495,335 $ $ 101,495,335 $ 162,850 Total Investment Trust Funds $ 101,474,046 184,139 101,658,185 $ 101,658,185 162,850 Liabilities Total liabilities Net position Held in trust for investment trust participants 172 162,850 Coconino County Combining Statement of Changes in Fiduciary Net Position Investment Trust Funds Year Ended June 30, 2015 Individual Investment Accounts Treasurer's Investment Pool Additions: Contribution from participants Investment earnings Total additions $ Deductions: Distributions to participants Total deductions $ 234,060,972 234,060,972 Change in net position (3,420,284) Net position, July 1, 2014 Net position, June 30, 2015 229,568,732 1,071,956 230,640,688 101,495,335 173 $ 8,422 229,577,154 1,071,956 230,649,110 3,640,876 3,640,876 237,701,848 237,701,848 (3,632,454) 104,915,619 $ 8,422 Total Investment Trust Funds (7,052,738) 3,795,304 $ 162,850 108,710,923 $ 101,658,185 Coconino County Statement of Changes in Assets and Liabilities Agency Fund Year Ended June 30, 2015 Assets Cash and cash equivalents Cash and investments held by trustee Total assets Balance July 1, 2014 Additions Deletions $ 1,938,582 1,141,351 $ 3,079,933 $ 68,252,927 1,749,389 $ 70,002,316 $ 68,355,698 1,940,627 $ 70,296,325 $ Liabilities Deposits held for others Due to other governments Total liabilities $ 2,858,403 221,530 $ 3,079,933 $ 65,475,922 4,526,394 $ 70,002,316 $ 65,819,719 4,476,606 $ 70,296,325 $ 174 Balance June 30, 2015 $ $ 1,835,811 950,113 2,785,924 2,514,606 271,318 2,785,924 STATISTICAL SECTION 175 THIS PAGE BLANK 176 Coconino County Statistical Section Year Ended June 30, 2015 This part of the Coconino County’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County’s overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed over time. .........................................................179-183 Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local revenue source, the property tax. ..............................................................................................184-187 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. ......................................................................188-190 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place. ...............................................191-193 Operating Information These 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. .....................................................................194-198 177 THIS PAGE BLANK 178 Coconino County Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2006 as restated 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ 149,872,339 Primary government: Governmental activities Invested in capital assets, 128,198,350 $ 129,694,889 $ 128,372,030 $ 145,814,515 $ 142,964,843 $ 145,559,259 $ 145,480,845 Restricted net of related debt $ 39,761,272 36,994,894 29,929,358 28,345,559 28,386,829 63,914,015 65,858,399 63,564,437 69,537,246 74,284,443 Unrestricted 57,199,373 64,103,998 52,345,917 52,251,638 53,636,533 22,113,670 23,547,699 22,747,752 18,591,785 (86,379,130) 210,473,625 $ 210,292,086 $ 210,395,392 $ 231,842,200 $ 232,370,941 $ 231,871,448 $ 233,609,876 Total governmental activities net position Source: Note: $ 109,735,410 206,696,055 $ $ 106,913,167 208,012,059 $ $ Coconino County Single Audit Reporting Package Due to the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions , in fiscal year 2015, net position for the year ended June 30, 2014 was restated, however this change was not reflected in this schedule. 179 $ 137,777,652 Coconino County Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal year 2006 2007 2008 2009 Expenses Governmental activities: General government $ Public safety 26,858,863 $ 30,137,861 $ 32,252,372 $ 32,364,030 27,583,478 29,170,427 32,282,534 33,164,905 Highways and streets 9,551,859 18,699,298 17,990,951 16,655,737 Sanitation 3,014,199 3,138,878 3,216,176 3,274,456 Health 11,160,577 11,575,909 12,192,703 12,692,864 Welfare 5,590,510 5,902,878 6,666,186 7,615,522 Culture and recreation 4,933,059 5,628,042 6,957,602 7,814,879 Education 3,730,202 3,816,081 4,437,125 4,892,986 Transportation 4,163,891 Interest on long term debt 1,761,726 603,969 512,256 1,602,303 Defeasance of long-term debt 832,030 Total expenses $ 98,348,364 $ 109,671,677 $ 117,431,648 $ 118,987,635 Program Revenues Governmental activities: Charges for services: General government 8,387,583 4,322,299 8,273,916 7,316,495 Public safety 3,643,195 4,132,207 2,986,695 3,421,790 298,492 3,459,682 74,556 1,152,294 Sanitation 1,138,057 1,437,621 1,375,478 1,375,437 Health 1,403,315 1,520,902 1,340,236 1,316,870 Welfare 1,455,946 1,599,249 1,337,392 1,262,876 Culture and recreation 1,031,838 1,188,201 1,159,535 1,170,109 71,232 107,301 115,216 95,016 39,359,052 33,695,469 34,185,253 34,581,839 1,937,161 134,120 898,314 Highways and streets Education Transportation 542,003 Operating grants and contributions Capital grants and contributions 118,520 Total governmental activities program revenues $ 59,267,874 $ 51,597,051 $ 51,746,591 $ 51,811,246 Net (expenses) revenues $ (39,080,490) $ (58,074,626) $ (65,685,057) $ (67,176,389) General Revenues and Other Changes in Net Assets Governmental activities: Property taxes, levied for general purposes 6,806,423 7,011,847 7,180,218 Property taxes, levied for library 2,539,393 1,263,035 3,847,035 7,935,524 4,708,037 Property taxes, levied for flood control 1,077,540 2,860,021 1,510,077 2,011,055 Property taxes, levied for accommodation school 189,318 Property taxes, levied for health services General county sales tax 11,580,757 12,384,595 12,445,915 11,497,627 Jail District sales tax 6,946,353 9,691,689 12,395,931 11,486,443 Parks and open spaces sales tax 2,894,657 3,076,949 3,105,737 2,871,495 Excise tax 100,295 111,593 102,863 92,118 Franchise tax 141,758 134,640 46,966 41,944 16,684,292 18,125,003 17,000,598 15,287,328 5,547,275 5,695,838 5,622,049 5,240,676 Road sales tax Shared revenue - state sales tax Shared revenue - state vehicle license tax Grants and contributions not restricted to specific 1,809,330 1,646,585 1,727,679 2,866,290 Investment earnings programs 745,407 4,489,537 2,726,375 2,388,053 Gain (loss) on disposal of capital assets 749,146 158,415 209,636 2,100 47,325 23,279 225,544 376,842 Miscellaneous Donated capital (7,282,396) Total general revenues $ 57,669,951 $ 59,390,630 $ 68,146,623 $ Change in net position $ 18,589,461 $ 1,316,004 $ 2,461,566 $ Source: Coconino County Single Audit Reporting Package 180 66,994,850 (181,539) Fiscal year 2010 $ 2011 31,501,241 $ 2012 30,768,963 $ 2013 31,590,773 $ 2014 32,049,113 $ 2015 29,994,545 $ 34,766,812 31,592,406 36,552,608 33,763,301 37,609,509 42,122,131 42,398,679 15,639,291 13,811,657 15,955,413 15,958,230 14,058,678 14,906,659 3,138,985 3,151,415 3,088,446 2,102,071 1,611,107 2,007,358 11,216,546 11,045,264 11,550,850 12,199,793 13,735,528 13,915,744 8,273,139 8,284,852 6,907,365 6,642,756 4,932,758 4,486,667 7,725,556 7,286,373 7,243,089 7,063,893 6,594,783 6,682,930 5,278,556 4,767,625 5,232,363 5,941,255 7,332,953 6,708,189 178,025 69,723 46,622 24,582 287,272 414,902 $ 114,780,622 $ 115,956,029 $ 115,509,625 $ 119,636,343 $ 120,429,105 $ 125,897,620 7,169,300 6,022,842 4,995,911 4,465,482 4,868,512 4,737,629 3,679,918 3,821,300 3,272,289 3,107,973 2,937,416 2,538,879 69,689 93,370 93,636 99,728 54,445 114,459 1,321,418 1,386,848 1,402,290 1,346,328 1,342,276 1,327,150 1,247,031 1,151,680 1,181,490 1,301,249 1,353,915 1,463,783 2,101,024 1,905,924 1,802,447 1,467,637 795,045 243,096 794,306 865,254 760,863 850,519 838,718 879,799 116,020 130,681 113,749 171,298 183,275 180,507 34,922,841 39,900,147 32,332,327 36,156,108 35,999,361 38,184,459 84,811 6,320,016 13,130 (1,892) 14,217 6,821 $ 51,506,358 $ 61,598,062 $ 45,968,132 $ 48,964,430 $ 48,387,180 $ 49,676,582 $ (63,274,264) $ (54,357,967) $ (69,541,493) $ (70,671,913) $ (72,041,925) $ (76,221,038) 8,185,332 8,405,307 8,807,267 8,744,783 9,040,033 9,023,305 5,107,399 4,879,638 4,313,244 4,157,084 3,906,545 3,848,918 1,959,193 1,849,054 3,179,252 2,943,787 2,462,802 2,425,568 4,310 275 142 33 4,923,145 4,801,721 4,390,334 3,816,050 3,761,327 10,774,208 11,118,458 11,369,591 11,705,643 12,271,635 13,579,820 10,791,078 11,109,910 11,368,185 11,699,874 12,270,130 13,576,136 2,689,346 2,775,886 2,832,704 2,923,093 3,065,409 997,627 68,688 118,795 107,980 74,510 83,589 70,356 39,207 36,969 36,788 47,198 58,608 94,022 14,353,390 15,670,801 17,208,420 18,592,227 19,067,396 19,995,985 4,971,307 4,932,200 4,676,609 3,082,023 3,180,936 3,301,848 2,139,437 1,974,042 1,930,854 1,902,703 2,616,490 2,484,148 2,090,720 684,904 1,162,458 1,420,929 700,571 130,889 1,037,009 73,066 111,114 (18) 8 3,778,550 (316,192) (882,441) 42,869 453,292 218,749 55,430 182,451 66,527 86,637 5,169,268 $ 63,377,570 $ 74,796,775 $ 70,968,204 $ $ 103,306 $ 20,438,808 $ 1,426,711 $ 70,172,420 (499,493) 181 $ 73,780,353 $ 77,943,575 $ 1,738,428 $ 1,722,537 Coconino County Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2006 2007 2008 2009 2010 2011 1 2012 2013 2014 2015 General Fund Reserved $ 48,359 Unreserved $ 29,626,015 60,623 $ 33,986,837 133,364 $ 27,495,342 173,499 $ 24,956,598 40,720 $ $ $ $ $ 22,206,572 Nonspendable 85,029 1,509,973 1,541,383 1,556,369 Restricted 1,517,238 15,000 Unassigned Total general fund $ 29,674,374 $ 34,047,460 $ 27,628,706 $ 25,130,097 $ 22,247,292 26,368,723 $ 26,453,752 28,450,416 $ 29,960,389 29,184,907 $ 30,726,290 26,643,317 $ 28,214,686 $ 26,126,347 27,643,585 All other governmental funds Reserved $ $ 7,954,393 $ 549,455 $ 384,735 $ 592,136 $ $ $ $ $ Unreserved, reported in: Special revenue funds Capital project funds Debt service fund 38,946,353 39,555,023 41,731,738 52,444,661 58,066,418 2,097,854 1,968,757 10,265,707 1,176,745 842,548 19,967,912 12,318,744 15,066 46 Nonspendable Restricted Unassigned Total all other governmental funds Source: $ 61,012,119 $ 61,796,917 $ 52,561,966 $ 54,006,187 $ 59,501,102 84,711 271,992 231,804 139,493 104,770 58,606,383 60,899,020 61,776,253 69,921,012 74,212,850 $ 58,691,094 $ 61,171,012 $ 62,008,057 Coconino County Single Audit Reporting Package 1 Due to implementation of GASB 54 in FY 2011, categories regarding fund balances have been redefined. See Note 1 of Notes to Basic Financial Statements. 182 (2,077,795) $ 67,982,710 $ (3,303,500) 71,014,120 Coconino County Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenues: Property taxes $ 10,427,635 $ 10,944,924 $ 12,447,359 $ 14,683,323 $ 15,286,914 $ 19,877,174 $ 21,134,274 $ 20,320,244 $ 19,255,927 $ 18,966,331 27,211,403 31,096,502 33,726,601 31,235,155 29,334,804 30,092,941 30,395,929 26,455,658 27,750,211 Special assessments 1,055,453 800,422 697,085 533,246 567,822 528,262 443,889 454,223 232,948 137,434 Licenses and permits 2,794,699 2,412,270 2,028,139 1,596,184 1,531,423 1,544,071 2,080,424 1,428,438 1,585,215 1,520,047 County sales taxes 32,096,706 1,894,884 1,958,043 2,426,546 2,636,342 2,475,047 1,912,702 1,536,208 1,434,276 1,890,338 1,609,332 Intergovernmental 59,239,916 52,924,453 52,807,937 52,131,109 51,035,314 61,706,361 51,173,921 60,388,098 60,348,857 60,921,308 Charges for services 11,811,190 12,413,030 11,059,144 10,616,158 11,421,254 11,176,829 9,280,931 8,764,702 7,751,499 7,004,301 1,316,328 5,076,801 3,426,238 2,941,346 2,547,186 894,731 1,450,443 1,713,752 1,038,111 Contributions 285,572 420,695 638,673 498,811 654,529 582,801 629,849 674,720 658,818 600,116 Miscellaneous 888,221 681,321 644,530 1,039,999 411,152 547,255 491,740 613,048 531,987 565,043 $ 116,925,301 $ 118,728,461 $ 119,902,252 $ 117,911,673 $ 115,265,445 $ 128,863,127 $ 118,617,608 $ 120,172,715 $ 121,719,552 $ 124,458,729 $ $ $ $ $ $ $ $ $ $ Fees, fines, and forfeits Investment income Total revenues (360,692) Expenditures: Current: General government 26,124,976 29,462,096 31,775,048 31,104,566 30,537,222 30,019,684 30,768,104 31,049,633 29,107,514 31,139,164 Public safety 26,768,092 28,039,150 31,240,851 31,381,596 30,336,374 36,611,002 34,375,074 39,373,290 45,050,982 43,662,534 Highways and streets 15,738,269 19,756,618 16,548,734 16,992,456 13,181,875 10,912,173 12,105,577 13,312,515 10,949,715 13,734,826 2,769,470 2,880,863 3,154,224 3,146,581 2,978,416 2,919,328 2,874,688 1,820,482 1,413,555 1,941,069 11,029,368 11,403,856 12,077,635 12,361,518 10,956,358 10,795,196 11,338,648 12,036,240 13,528,580 13,091,067 Welfare 5,516,865 5,993,228 6,605,519 7,517,819 8,149,363 8,109,040 6,806,132 6,464,632 4,936,174 4,091,392 Culture and recreation 5,475,603 5,727,983 8,320,721 8,045,985 7,607,898 19,136,103 6,650,038 6,122,803 5,986,724 6,598,582 Education 3,425,244 3,618,428 4,273,975 4,730,288 5,110,500 4,727,587 5,085,903 5,783,644 7,176,253 6,456,550 Transportation 8,351,299 4,940,004 359,940 1,711,967 1,434,116 771,393 1,049,137 148,465 2,213,866 147,146 1,281,468 Principal 4,280,700 4,303,256 18,545,471 2,508,901 2,637,213 2,255,923 2,353,289 396,669 415,808 105,144 Interest and other charges 1,761,725 1,602,303 1,435,999 512,256 414,902 287,272 178,025 69,723 46,622 24,582 $ 116,181,615 $ 113,147,721 $ 135,690,144 $ 119,736,082 $ 112,681,514 $ 126,822,445 $ 112,683,943 $ 118,643,497 $ 118,759,073 $ 122,126,378 743,686 5,580,740 2,583,931 2,040,682 5,933,665 1,529,218 2,960,479 2,332,351 20,194 502,570 127,958 Sanitation Health Capital outlay Debt service: Total expenditures Excess (deficiency) of revenues over expenditures (15,787,892) (1,824,409) Other financing sources (uses): Sale of capital assets $ 314,542 $ Bond proceeds 368,694 $ 22,911 $ (791,550) Transfers in Transfers out Total other financing sources and uses Net changes in fund balances $ 28,179 $ 1,329,950 14,112,086 12,934,995 37,093,497 15,481,676 15,042,578 21,912,454 (14,112,086) (12,934,995) (36,982,221) (15,508,755) (15,042,578) (21,894,634) 314,542 $ 2,100 795,000 1,058,228 (422,856) $ 5,157,884 134,187 $ (15,653,705) 770,021 $ (1,054,388) 28,179 $ 2,612,110 $ 1,347,770 $ 3,388,452 14,661,648 $ (14,608,758) 52,890 $ 5,986,555 14,454,693 $ (14,401,159) 73,728 $ 1,602,946 14,188,062 $ (14,188,062) 502,570 $ 3,463,049 15,427,307 (15,427,307) 127,958 $ 2,460,309 Debt service as a percentage of noncapital expenditures 5.74% Source: Note: 5.53% 17.53% 2.62% Coconino County Single Audit Reporting Package Financial statement amounts adjusted to show Capital Outlay in FY 2006 through 2008 183 2.80% 2.06% 2.25% 0.42% 0.41% 0.12% Coconino County Assessed Value and Estimated Market Value of Taxable Property Last Ten Years Property Values Assessed Fiscal Year Ended June 30, Secured Unsecured Total 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1,144,384,468 1,288,341,613 1,458,940,955 1,605,854,299 1,694,104,159 1,607,918,353 1,714,437,231 1,714,436,551 1,475,006,428 1,478,590,523 223,578,936 225,916,527 229,241,854 234,920,747 224,614,413 232,224,257 45,163,364 45,173,364 58,058,854 55,893,415 1,367,963,404 1,514,258,140 1,688,182,809 1,840,775,046 1,918,718,572 1,840,142,610 1,759,600,595 1,759,609,915 1,533,065,282 1,534,483,938 Source: Note: Total Direct Tax Rate 0.8652 0.8521 0.8588 0.8791 0.8340 1.0820 1.3170 1.3347 1.4522 1.4702 Total Secured and Unsecured Estimated Market Value 11,396,633,513 13,799,610,572 16,687,281,012 17,790,931,957 17,143,465,763 15,460,396,890 14,840,670,920 14,840,650,090 13,008,153,658 13,223,453,140 Coconino County Assessor Secured and Unsecured assessed property values and estimated market values are determined each calendar year. The tax rates are applicable beginning July 1st of the next fiscal year. The Board of Supervisors approves the tax rates on the third Monday of August. 184 Total Assessed Value as a Percentage of Total Estimated Market Value 12.0 11.0 10.1 10.3 11.2 11.9 11.9 11.9 11.8 11.6 Coconino County Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Direct Rates Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 County Operating 0.4753 0.4622 0.4383 0.4338 0.3973 0.3953 0.4303 0.4480 0.5466 0.5646 Library District 0.1899 0.1899 0.2205 0.2293 0.2367 0.2367 0.2367 0.2367 0.2556 0.2556 Flood Control District 0.2000 0.2000 0.2000 0.2160 0.2000 0.2000 0.4000 0.4000 0.4000 0.4000 Public Health Service District Total Direct 0.8652 0.8521 0.8588 0.8791 0.8340 1.0820 1.3170 1.3347 1.4522 1.4702 0.2500 0.2500 0.2500 0.2500 0.2500 Overlapping Rates Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Note: Fire District Assistance 0.1000 0.1000 0.1000 0.0972 0.0904 0.0925 0.0986 0.1000 0.1000 0.1000 School Equalization 0.4358 0.3306 0.3564 0.4259 0.4717 0.5123 0.5089 Community College 0.5525 0.5269 0.4865 0.4643 0.4267 0.4308 0.4734 0.4927 0.5879 0.6056 Cities 0 - 1.6627 0 - 1.5929 0 - 1.5519 0 - 1.5169 0 - 1.4913 0 - 1.4845 0 - 1.5283 0 - 1.5497 0 - 1.6795 0 - 1.6784 Coconino County adopted tax rate schedules Tax rates are per $100 assessed valuation. 185 Fire Districts 0.6500 - 3.0000 0.4700 - 3.0000 0.4100 - 2.7500 0.4100 - 2.7500 0.3000 - 3.0000 0.2742 - 3.0000 0.0600 - 3.2500 0.3000 - 3.2500 0.3500 - 3.2500 0.4000 - 3.2500 Other Special Districts 0 - 1.1730 0 - 1.3500 0 - 2.2300 0 - 2.2300 0 - 2.9705 0 - 2.6680 0 - 1.5640 0 - 1.6919 0 - 3.3685 0 - 1.6659 School Districts 0.0500 - 10.4246 0.0500 - 9.4606 0.0500 - 9.9025 0.0500 - 10.9896 0.0500 - 9.9371 0.0500 - 8.4520 0.0500 - 8.5934 0.0500 - 10.7007 0.0500 - 11.9461 0.0500 - 11.9461 Coconino County Principal Property Tax Payers Current Year and Ten Years Ago 2015 2005 1 1 Percentage of Total Primary Assessed Value 5.15% 1 Percentage of Total Primary Assessed Value 5.10% 2 1.48 20,226,175 2 1.60 Burlington Northern/Santa Fe Railway Company 19,361,537 3 1.26 18,931,112 5 1.50 Unisource Energy Corporation 18,995,903 4 1.24 17,368,511 6 1.37 W.L. Gore & Associates Inc. 16,852,228 5 1.10 10,282,172 8 0.81 City of Los Angeles Dept of Wtr & Pwr 16,628,776 6 1.08 19,095,834 3 1.51 Kinder Morgan (El Paso Natural Gas) 14,508,410 7 0.95 19,085,580 4 1.51 Nevada Power Company 10,022,570 8 0.65 11,767,729 7 0.93 Perrin Ranch Wind, LLC 6,069,480 9 0.40 Qwest Corporation 5,934,692 10 0.39 5,027,767 10 0.40 7,096,504 193,394,504 9 Arizona Public Service Company Total Assessed Value $ 79,072,397 Transwestern Pipeline Company 22,673,775 Taxpayer Questar Southern Trails Pipeline Company Total Principal Taxpayers $ Total Coconino County Primary Assessed Value $ 1,534,483,938 Source: Rank 210,119,768 13.70% Total Assessed Value $ 64,513,120 $ $ 1,263,779,835 Coconino County Assessor 1 Arizona Department of Revenue, Central Information Services 186 Rank 0.56 15.29% Coconino County Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Fiscal Year Ended June 30, County Tax Levied For the Fiscal Year Amount Percentage of Levy 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ 9,576,903 10,373,130 11,991,569 14,061,783 14,383,909 19,513,519 19,880,920 19,356,876 18,532,923 18,532,923 $ 9,416,476 10,197,426 11,693,983 13,583,453 13,977,568 18,641,220 19,239,142 18,811,741 18,092,321 18,184,357 98.32 98.31 97.52 96.60 97.18 95.53 96.77 97.18 97.62 98.12 County Operating 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ 5,998,653 6,332,859 6,637,571 7,328,876 7,320,104 7,631,149 7,774,986 7,836,325 8,321,922 8,321,922 Note: Collections in Subsequent Years Amount Percentage of Levy 166,352 172,808 283,290 456,342 406,557 733,375 525,707 419,108 311,028 $ 9,582,828 10,370,234 11,977,273 14,039,795 14,384,125 19,374,595 19,764,849 19,230,850 18,403,350 18,184,357 100.06 99.97 99.88 99.84 100.00 99.29 99.42 99.35 99.30 98.12 Flood Control District County Library Total County $1,081,336 1,237,412 1,508,651 2,014,075 1,961,323 1,849,827 3,172,129 2,959,452 2,468,506 2,468,506 $ 2,496,913 2,802,859 3,845,347 4,718,832 5,102,482 4,879,193 4,344,836 4,163,575 3,914,125 3,914,125 $ 9,576,903 10,373,130 11,991,569 14,061,783 14,383,909 19,513,519 19,880,920 19,356,876 18,532,923 18,532,923 $ County Tax Levied for the Fiscal Year Fiscal Year Ended June 30, Source: Total Collections to Date Public Health Service District $ 5,153,351 4,588,969 4,397,524 3,828,370 3,828,370 Taxes levied and collections are obtained from the Coconino County Treasurer. Collections to date may exceed 100%, as the initial amount levied is not updated to reflect any adjustments or exemptions arising from taxpayer disputes. 187 Coconino County Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Certificates of Participation $ 20,100,000 18,180,000 Source: Jail District Revenue Bonds $ 14,370,000 12,445,000 10,435,000 8,340,000 6,145,000 3,855,000 1,970,000 Special Assessments $ 2,490,948 2,153,550 1,885,208 2,364,178 2,016,964 1,646,042 1,262,673 866,084 450,276 345,131 Total $ 36,960,948 32,778,550 12,320,208 10,704,178 8,161,964 5,501,042 3,232,673 866,084 450,276 345,131 Percentage of Personal Income 0.92% 0.77% 0.28% 0.24% 0.18% 0.12% 0.07% 0.02% 0.01% NA 1 2 Per Capita $ 287.20 251.29 93.44 80.19 60.64 40.90 23.77 6.34 3.27 NA Details regarding the County's outstanding debt can be found in the Notes to the financial statements. 1 Personal income and population information can be found in the Demographics and Economic Statistics schedule. 2 Personal and income and population was not available for 2015. 188 1 2 Coconino County Legal Debt Margin Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2015 Assessed value Debt limit (6% of assessed value) Debt applicable to limit: General obligation bonds Less: Amount set aside for repayment of general obligation debt Total net debt applicable to limit Legal debt margin $ 1,534,483,938 92,069,036 $ 92,069,036 Fiscal Year 2006 Debt limit Total net debt applicable to the limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Source: Note: 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ 82,077,804 $ 90,855,488 $ 101,290,969 $ 110,446,503 $ 115,123,114 $ 110,408,557 $ 105,576,036 $ 105,576,595 $ 91,983,917 $ 92,069,036 $ 82,077,804 $ 90,855,488 $ 101,290,969 $ 110,446,503 $ 115,123,114 $ 110,408,557 $ 105,576,036 $ 105,576,595 $ 91,983,917 $ 92,069,036 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Assessed value information obtained from the Coconino County Assessor. Debt amounts obtained from the Coconino County Single Audit Reports. The Arizona Constitution, Article 9, Section 8, state that the County may become indebted for an amount not to exceed six percent of taxable property. 189 0.00% 0.00% Coconino County Pledged Revenue Coverage Last Ten Fiscal Years Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Jail District Revenues 1 13,951,974 17,132,399 20,714,914 22,039,625 23,176,800 24,465,343 25,597,226 26,432,645 29,764,353 33,158,650 Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Special Assessment Revenues 1 770,745 762,301 1,024,569 1,082,701 938,727 1,001,654 971,522 931,380 704,051 371,959 Less: Expenditures 2 9,742,506 10,708,410 12,543,072 12,175,349 12,060,220 12,366,420 12,638,737 12,954,957 13,793,638 13,554,714 Jail District Revenue Bonds Net Available Debt Service Revenue Principal Interest 4,209,468 1,920,000 956,555 6,423,989 2,010,000 566,908 8,171,842 2,095,000 477,958 9,864,276 2,195,000 383,992 11,116,580 2,290,000 284,622 12,098,923 1,885,000 177,311 12,958,489 1,970,000 89,333 13,477,688 1,500 15,970,715 19,603,936 Special Assessment Bonds Debt Service Principal Interest 393,571 155,405 293,256 168,330 270,471 126,011 313,901 128,264 347,213 130,280 370,923 109,961 370,923 109,961 396,669 68,223 415,808 46,622 105,144 24,582 Coverage 1.40 1.65 2.58 2.45 1.97 2.08 2.02 2.00 1.52 2.87 Source: Details regarding the County's outstanding debt can be found in the Notes to the financial statements. 1 Revenues included beginning fund balances and transfers in. 2 Expenditures include transfers out. 190 Coverage 1.46 2.49 3.18 3.82 4.32 5.87 6.29 Coconino County Demographic and Economic Statistics Last Ten Fiscal Years Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sources: Population 128,695 130,442 131,853 133,477 134,611 134,105 136,011 136,539 139,372 137,903 Personal Income (thousands of dollars) $ 4,111,297 4,348,995 4,590,014 4,514,396 4,523,918 4,617,232 4,735,934 4,906,294 5,399,899 NA 1 Per Capita Personal Income $ 31,946 33,340 34,812 33,822 33,607 34,430 34,820 35,933 39,220 NA 1 Unemployment Rate 4.2% 3.7 5.1 7.1 8.4 8.2 8.3 7.9 7.1 6.4 Population and personal income through 2014 obtained from U.S. Department of Commerce, Bureau of Economic Analysis (BEA). Population projection for 2015 obtained from Office of Employment & Population Statistics, Arizona Department of Administration. Unemployment rate obtained from Arizona Unemployment Statistics Program, Research Administration. 1 Personal income estimates were not yet available for fiscal year 2015. 191 THIS PAGE BLANK 192 Coconino County Principal Employers Current Year and Nine Years Ago 2015 Employer Northern Arizona University Flagstaff Medical Center W.L. Gore Flagstaff Unified School District Coconino County City of Flagstaff Twin Arrows Navajo Casino Resort Walmart Grand Canyon Railway SCA Tissue Walgreens Distribution Center Total Employment in Coconino County As of June 30 3 Sources: Employees 2,815 2,300 2,200 1,436 1,294 872 700 630 421 279 1 Rank 1 2 3 4 5 6 7 8 9 10 68,940 2006 Percentage of Total County Employment 4.08% 3.34% 3.19% 2.08% 1.88% 1.26% 1.02% 0.91% 0.61% 0.40% Employees 3,393 1,999 1,300 1,700 1,056 948 Rank 1 2 4 3 5 6 279 400 67,652 1 Economic Collaborative of Northern Arizona, Flagstaff Chamber of Commerce 2 Arizona Department of Economic Security, Workforce Arizona Statistics 3 Arizona Unemployment Statistics Program, Research Administration 193 8 7 2 Percentage of Total County Employment 5.02% 2.95% 1.92% 2.51% 1.56% 1.40% 0.41% 0.59% Coconino County Full-Time Equivalent Employees by Function Last Ten Fiscal Years Function/Program General Government Assessor Board of Supervisors Clerk of the Superior Court Community Development County Attorney County Manager Facilities Management Finance Human Resources Government Relations Information Technology Justice Court - Flagstaff Justice Court - Fredonia Justice Court - Page Justice Court - Williams Legal Defender Non-Departmental Organizational Development Public Defender Recorder Superintendent of Schools Superior Court Treasurer Public Safety Adult Probation Constable Emergency Management Jail District Juvenile Court Services Sheriff Highways and Streets Public Works Sanitation Kachina Village Imp. Dist. Health Health Welfare Career Center Community Services Culture and Recreation Parks and Recreation Total Full-time Equivalent Employees as of June 30 2006 2007 2008 2009 24.00 13.50 21.50 19.50 42.00 5.00 28.00 17.00 10.00 26.00 13.50 23.50 21.50 42.00 5.00 28.00 19.00 10.00 27.00 13.50 23.35 23.00 42.75 10.50 28.00 19.00 11.00 27.08 14.50 23.35 23.50 43.00 10.50 28.00 18.00 10.00 27.50 20.50 2.00 5.00 4.75 4.48 28.00 22.00 2.50 5.00 5.00 4.48 28.00 24.25 2.50 5.00 5.00 5.00 30.00 24.50 2.50 5.00 5.00 5.00 1.00 22.00 17.00 6.85 30.50 8.00 1.00 22.00 17.00 10.40 31.00 8.50 1.00 22.00 19.00 11.36 34.75 8.50 1.00 22.00 19.00 11.36 35.00 8.00 58.60 1.00 59.60 1.00 60.10 1.00 60.10 1.00 146.33 75.28 91.50 146.33 75.28 93.50 165.83 75.48 94.50 168.83 75.28 94.50 136.40 136.40 136.40 136.40 8.00 8.00 8.00 8.00 121.24 122.50 129.58 132.53 10.88 58.13 10.88 47.92 10.88 49.15 13.88 51.65 19.00 1,056.44 19.00 1,065.79 20.50 1,115.88 21.00 1,129.46 Source: Coconino County Budget Books 2006-2015 194 2010 2011 2012 2013 2014 2015 27.00 14.00 23.35 23.50 42.00 11.00 28.00 18.00 10.00 25.00 13.50 23.35 22.50 42.00 12.00 26.00 17.00 10.00 25.00 13.50 23.35 22.50 42.00 12.40 26.00 18.25 9.73 26.00 13.50 23.98 22.50 42.00 13.22 26.00 18.25 9.73 27.00 14.50 23.60 23.50 43.00 12.47 26.00 18.00 10.63 30.00 23.50 2.50 5.00 5.00 5.00 31.00 22.75 2.50 5.00 5.00 5.00 4.00 28.00 22.75 2.50 5.00 5.00 5.00 3.00 24.00 22.75 2.50 5.00 5.00 5.00 24.00 21.50 2.50 5.00 6.00 6.00 27.00 14.50 23.60 30.00 43.00 7.00 26.00 18.00 10.63 4.00 24.00 21.50 2.50 5.00 6.00 6.00 1.00 21.00 19.00 11.36 36.00 8.00 21.00 17.00 9.58 35.00 8.00 21.00 17.00 8.88 33.50 8.00 21.00 17.00 11.66 34.33 8.00 20.00 17.50 10.83 34.33 8.00 20.00 17.50 10.00 36.33 8.00 60.10 1.00 59.50 1.00 59.50 1.00 58.80 1.00 56.80 1.00 168.83 72.08 96.50 166.83 71.20 97.50 169.63 69.58 97.50 169.68 68.63 99.65 170.98 70.11 96.83 56.80 1.00 3.00 172.89 69.93 98.75 136.40 121.15 120.50 132.13 127.54 125.51 8.00 8.00 8.00 8.00 8.00 8.00 135.17 111.65 113.71 111.60 114.33 102.32 13.00 43.17 13.00 48.22 12.00 51.22 12.00 50.32 12.00 48.33 13.00 34.83 21.00 1,119.46 19.75 1,074.98 19.75 1,074.75 20.00 1,083.23 19.00 1,079.28 19.00 1,065.59 195 Coconino County Operating Indicators by Function/Program Last Ten Fiscal Years F Function/Program 2006 2007 2008 2009 General Government Clerk of the Superior Court New Court Cases Community Development Building Permits Issued Building Inspection/Site Visits County Attorney Adult Felony and Misdemeanor cases Victim Restitution Collected for Bad Checks Justice Courts Total Cases Legal Defender Total Cases $ Public Defender Total Cases Recorder Documents Recorded by Fiscal Year Registered Voters Superior Court Total Number of Criminal Cases Filed Total Number of Domestic Relations Cases Filed Total Number of Civil Cases Filed Treasurer Total Real Property Notices Public safety Adult Probation Monthly Average Probationers Supervised Restitution Collected $ Jail District Average Local Population Juvenile Court Services Delinquents and Incorrigible Petitions Filed Contributed to Community Through Restitution Hours $ Sheriff Calls for Service Culture and recreation Parks and Recreation County Fair participants Highways and streets Public Works Number of miles graded Number of miles resurfaced Miles of road chip sealed Health Health Department Patient Vaccination visits Restaurant/Public Facility Inspections Welfare Community Services Home Delivered Meals Congregate Meals Cases Managed Source: County Department records and Adopted Budgets 196 3,611 3,805 3,502 3,910 2,061 8,512 1,934 7,487 1,794 6,950 1,581 6,295 8,624 95,474 $ 8,994 52,846 $ 8,334 49,833 $ 7,518 35,028 24,514 27,462 26,206 27,596 683 605 512 466 4,567 4,562 4,001 3,889 61,336 65,977 54,356 62,046 42,701 66,000 37,929 71,000 1,291 1,192 1,108 1,179 597 1,030 725 998 619 874 692 1,111 71,111 72,518 74,000 77,100 1,252 242,688 1,343 $ 244,527 1,280 $ 220,000 1,236 $ 237,055 374 365 397 366 860 34,569 $ 870 34,650 $ 878 34,779 $ 817 54,433 40,324 42,344 38,911 40,656 40,839 42,536 43,126 45,049 2,521 104 22 1,712 28 24 2,114 35 75 2,382 53 21 16,250 4,481 10,729 3,664 10,783 4,048 10,512 3,838 21,520 21,071 2,949 21,227 23,612 3,591 24,400 25,100 3,042 20,806 24,366 3,012 Fiscal Year 2010 2011 2012 2013 2014 2015 3,950 4,575 4,583 4,343 4,296 4,465 1,783 4,624 1,880 5,545 1,311 2,629 1,250 3,496 1,280 4,100 1,200 3,600 6,278 15,231 7,002 $ 16,000 26,801 26,506 26,833 22,819 24,438 23,093 400 370 451 552 702 728 3,393 3,026 3,133 2,951 2,830 3,097 37,000 66,000 37,000 67,000 36,500 68,000 32,000 73,000 32,000 71,000 40,000 67,000 1,024 862 943 900 930 929 766 1,166 711 1,077 608 716 625 873 630 880 653 706 73,796 74,000 74,786 74,000 80,165 70,334 1,253 $ 196,824 1,252 $ 189,911 1,222 $ 153,524 1,193 $ 198,079 1,196 $ 190,000 1,184 $ 190,000 372 372 407 432 400 415 662 30,584 619 $ 34,707 50,311 52,815 56,195 60,955 58,651 63,270 41,711 45,441 45,095 42,841 44,000 45,000 2,303 45 60 2,500 70 55 2,400 70 80 2,088 62 44 2,559 104 2,755 79 54 10,510 3,662 4,300 3,400 4,693 3,400 4,923 3,825 4,323 3,737 3,564 3,115 20,500 25,076 3,180 18,395 26,649 3,303 18,500 25,076 3,200 14,268 20,220 1,404 17,304 21,346 810 17,683 18,965 842 $ $ 7,009 24,150 662 46,906 $ $ $ $ 6,915 13,444 608 39,814 $ $ 197 9,552 18,938 449 43,474 $ $ 9,181 8,045 481 52,601 Coconino County Capital Asset and Infrastructure Statistics by Function Last Nine Fiscal Years Function General government Facilities square footage managed Public safety Jails Substations Patrol vehicles Highways and streets Bridges Miles of paved roads Miles of unpaved roads Sanitation Solid Waste transfer stations Wastewater treatment facilities Wells Health Public health facilities Animal transport vehicles Culture and recreation Parks Acres protected as open space Trail miles available for public use Education School building 2007 2008 2009 Fiscal Year 2011 2010 2012 2013 2014 2015 703,032 684,914 684,914 684,914 684,914 684,914 684,914 679,914 682,455 2 8 69 2 8 74 2 8 74 2 8 75 2 8 77 2 8 79 2 8 55 2 7 46 2 7 47 30 319 711 30 322 711 30 323 711 30 323 711 30 332 711 30 319 611 38 319 604 39 333 590 39 323 672 10 1 5 10 1 5 10 1 5 10 1 5 10 1 5 8 1 5 8 1 5 2 1 5 2 1 5 1 3 1 3 1 3 1 3 1 3 1 4 1 4 1 4 1 4 7 589 14 9 589 16 9 589 17 9 589 17 9 2,503 18 9 2,600 18 9 2,600 18 9 2,600 18 9 2,600 23 2 2 2 2 2 2 2 2 2 Source: Note: Coconino County capital asset records and county departments Information was only available for nine years. 198