Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2013 Coconino County Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2013 COCONINO COUNTY BOARD OF SUPERVISORS Art Babbott District 1 Elizabeth C. Archuleta Vice Chairperson District 2 Mandy Metzger District 4 Matthew G. Ryan Chairman District 3 Lena Fowler District 5 Cynthia Seelhammer County Manager Michael Townsend Deputy County Manager Larry Dannenfeldt Deputy County Manager Finance Team Michael Townsend, Interim Chief Financial Officer Holly Lindfors, CPA, Contract Accountant Thomas Johnson, CPA, Interim Accounting Manager Marsha Westling, Accountant www.coconino.az.gov COCONINO COUNTY TABLE OF CONTENTS YEAR ENDED JUNE 30, 2013 INTRODUCTORY SECTION LETTER OF TRANSMITTAL 1 CERTIFICATE OF ACHIEVEMENT 9 ORGANIZATION CHART 10 COCONINO COUNTY OFFICIALS 11 FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 12 REQUIRED SUPPLEMENTARY INFORMATION - MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 15 GOVERNMENT-WIDE STATEMENTS STATEMENT OF NET POSITION 25 STATEMENT OF ACTIVITIES 26 FUND FINANCIAL STATEMENTS GOVERNMENTAL FUNDS BALANCE SHEET 27 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION 29 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 30 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 32 PROPRIETARY FUNDS STATEMENT OF NET POSITION-PROPRIETARY FUND 33 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION-PROPRIETARY FUND 34 STATEMENT OF CASH FLOWS-PROPRIETARY FUND 35 FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION 36 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 37 NOTES TO FINANCIAL STATEMENTS 38 COCONINO COUNTY TABLE OF CONTENTS YEAR ENDED JUNE 30, 2013 FINANCIAL SECTION (CONTINUED) REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF AGENT RETIREMENT PLAN’S AND COCONINO COUNTY POSTEMPLOYMENT HEALTHCARE PLAN’S FUNDING PROGRESS 70 BUDGETARY COMPARISON SCHEDULES GENERAL FUND 71 PUBLIC WORKS/HURF FUND 73 JAIL DISTRICT FUND 74 PUBLIC HEALTH SERVICES DISTRICT FUND FLOOD CONTROL DISTRICT FUND 75 76 NOTES TO BUDGETARY COMPARISON SCHEDULES 77 LISTING OF NONMAJOR GOVERNMENTAL FUNDS 79 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS 82 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL FUNDS 90 SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL ADULT PROBATION GRANTS AND FEES 98 ASSESSOR STORAGE AND RETRIEVAL 99 CAREER CENTER GRANTS 100 CLERK OF THE SUPERIOR COURT GRANTS AND FEES 101 COMMUNITY SERVICES GRANTS AND FEES 102 CONCILIATION COURT 103 COUNTY ATTORNEY GRANTS AND FEES 104 COUNTY IMPROVEMENT DISTRICTS-SPECIAL REVENUE 105 COUNTY LIBRARY DISTRICT 106 EMERGENCY SERVICES GRANTS 107 INMATE WELFARE 108 JAIL ENHANCEMENT 109 JUSTICE COURTS GRANTS AND FEES 110 JUVENILE COURT GRANTS AND FEES 111 LEGAL DEFENDER GRANTS AND FEES 112 NATIONAL FOREST FEES 113 PARKS AND RECREATION GRANTS AND FEES 114 COCONINO COUNTY TABLE OF CONTENTS YEAR ENDED JUNE 30, 2013 FINANCIAL SECTION (CONTINUED) PUBLIC DEFENDER GRANTS AND FEES 115 RECORDER STORAGE AND RETRIEVAL 116 SCHOOL SUPERINTENDENT GRANTS AND FEES 117 SHERIFF GRANTS AND FEES 118 SOLID WASTE 119 SUPERIOR COURT GRANTS AND FEES 120 TAXPAYER INFORMATION FUND 121 OTHER SPECIAL REVENUE FUNDS 122 COUNTY IMPROVEMENT DISTRICTS – DEBT SERVICE 123 PARKS AND OPEN SPACES TAX PROJECTS FUND 124 ACCOMMODATION SCHOOL 125 COUNTY IMPROVEMENT DISTRICTS - CAPITAL PROJECTS 126 OTHER CAPITAL PROJECTS FUNDS 127 COMBINING STATEMENT OF FIDUCIARY NET POSITION – INVESTMENT TRUST FUNDS 128 COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – INVESTMENT TRUST FUNDS 129 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES – AGENCY FUND 130 COCONINO COUNTY TABLE OF CONTENTS YEAR ENDED JUNE 30, 2013 STATISTICAL SECTION FINANCIAL TRENDS NET POSITION BY COMPONENT 131 CHANGES IN NET POSITION 132 FUND BALANCES - GOVERNMENTAL FUNDS 134 CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 135 REVENUE CAPACITY ASSESSED VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY 136 DIRECT AND OVERLAPPING PROPERTY TAX RATES 137 PRINCIPAL PROPERTY TAX PAYERS 138 PROPERTY TAX LEVIES AND COLLECTIONS 139 DEBT CAPACITY RATIOS OF OUTSTANDING DEBT BY TYPE 140 LEGAL DEBT MARGIN 141 PLEDGED REVENUE COVERAGE 142 DEMOGRAPHIC AND ECONOMIC INFORMATION DEMOGRAPHIC AND ECONOMIC STATISTICS 143 PRINCIPAL EMPLOYERS 144 OPERATING INFORMATION FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION 145 OPERATING INDICATORS BY FUNCTION/PROGRAM 147 CAPITAL ASSET AND INFRASTRUCTURE STATISTICS BY FUNCTION 149 INTRODUCTORY SECTION 1 2 3 4 5 6 7 8 9 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 Adult Probation JUVENILE COURT Juvenile Division Juvenile Probation Clerk of Superior Court JUSTICE COURTS Court Administration Flagstaff Fredonia Page Williams CONSTABLE COUNTY ATTORNEY BOARD OF SUPERVISORS Districts 1 2 3 4 5 CLERK OF THE BOARD ASSISTANT COUNTY MANAGER Public Defender Legal Defender Parks and Recreation Public Works Community Development ELECTED OFFICIALS Assessor Treasurer Attorney Recorder Sheriff Superintendent of Schools Board Assistants COUNTY MANAGER DEPUTY COUNTY MANAGER ASSISTANT COUNTY MANAGER Governmental Relations Public Information Liaison to Elected Offices ASSISTANT COUNTY MANAGER Facilities Management Information Technology Career Center Public Health Services District Human Resources Finance Community Services Organizational Development 10 COCONINO COUNTY County Officials BOARD OF SUPERVISORS District 1 ................................................................................................................................................................. Art Babbott District 2 ............................................................................................................... Elizabeth C. Archuleta, Vice Chairperson District 3 ....................................................................................................................................Matthew G. Ryan, Chairman District 4 ..........................................................................................................................................................Mandy Metzger District 5 ............................................................................................................................................................... Lena Fowler County Manager ................................................................................................................................... Cynthia Seelhammer Deputy County Manager ........................................................................................................................... Michael Townsend Deputy County Manager ............................................................................................................................ Larry Dannenfeldt Clerk of the Board ......................................................................................................................................... Wendy Escoffier ELECTED OFFICIALS Clerk of the Superior Court .............................................................................................................................. Debbie Young Constable ....................................................................................................................................................... Linda Kuczynski County Assessor ................................................................................................................................................... Chris Mazon County Attorney ................................................................................................................................................David Rozema County Recorder ................................................................................................................................................ Patty Hansen County Sheriff ................................................................................................................................................... William Pribil County Superintendent of Schools ...................................................................................................................... Robert Kelty County Treasurer ................................................................................................................................................. Bonny Lynn 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 ................................................................................................................... Joseph Lodge 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 (Interim) ...................................................................................................................................... Michael Townsend Information Technology ............................................................................................................................... Kristopher Estes Juvenile Court Services .................................................................................................................................. Bryon Matsuda Legal Defender ............................................................................................................................................. Gary Pearlmutter Parks and Recreation ............................................................................................................................................ Judy Weiss Public Defender ........................................................................................................................................... H. Allen Gerhardt Public Works ..............................................................................................................................................Andrew Bertelsen Superior Court Juvenile Court Judge/Commissioner ....................................................................... Margaret McCullough 11 FINANCIAL SECTION Independent Auditors’ Report Members of the Arizona State Legislature 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, 2013, 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. 12 2910 NORTH 44 th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, 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, 2013, 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. Other Matters Required Supplementary Information U.S. generally accepted accounting principles require that the Management’s Discussion and Analysis on pages 15 through 24, the Schedule of Agent Retirement Plan’s and Coconino County Postemployment Healthcare Plan’s Funding Progress on page 70, and the Budgetary Comparison Schedules on pages 71 through 77 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with 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, based on our audit and the procedures performed as described above, 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. 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. 13 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 have also issued our report dated March 25, 2014, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Debbie Davenport Auditor General March 25, 2014 14 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (REQUIRED SUPPLEMENTARY INFORMATION) Coconino County Management’s Discussion and Analysis June 30, 2013 Our discussion and analysis of the County’s financial performance provides an overview of the County’s financial activities for the year ended June 30, 2013. Please read it in conjunction with the transmittal letter on pages 1-8 and the County’s basic financial statements, which follow this section. FINANCIAL HIGHLIGHTS FOR FISCAL YEAR 2013 • • • • • • The assets of the County exceeded its liabilities at the close of fiscal year 2013 by $231.87 million (net position). Of these $22.75 million (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. The decrease in the County’s net position was $0.50 million in fiscal year 2013. At the close of fiscal year 2013, the County’s governmental funds reported combined ending fund balances of $92.73 million, an increase of $1.60 million. The General Fund reported an unassigned fund balance of $29.18 million at the close of fiscal year 2013, an increase of $0.73 million. The primary reason for this increase was the excess of revenues over expenditures. The County continued to expend significant resources for response and mitigation efforts as a result of the flooding caused by the fiscal year 2010 Schultz fire. Over $7.7 million was expended in fiscal year 2013. In fiscal year 2013 $4.7 million in state and federal grants were received. The original 1998 issue of $21.13 million in Jail District Revenue Bonds were retired in fiscal year 2013 with the final principal payment of $1.97 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 15 Coconino County Management’s Discussion and Analysis June 30, 2013 way that helps answer this question. These statements include all non-fiduciary assets and liabilities using the accrual basis of accounting. The Statement of Net Position presents information on all of the County’s assets and liabilities, with the difference between the two reported as “net position”. Over time, increases and decreases in net position are one indicator of whether the County’s financial condition is improving or deteriorating. In addition to this change, other non-financial factors will need to 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 flows. 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 25-26 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, short-term 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. Because the focus of the governmental funds is more narrow 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. 16 Coconino County Management’s Discussion and Analysis June 30, 2013 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. The basic governmental fund financial statements can be found on pages 27-32 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 33-35 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 36-37 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 38-69 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 70-77 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Position Net Position may serve over time as a useful indicator of a County’s financial position. The following table reflects the condensed Statement of Net Position of the County for June 30, 2013 compared to the prior year. 17 Coconino County Management’s Discussion and Analysis June 30, 2013 Governmental Activities (in millions) 2013 Current and other assets Capital assets $ Total assets Current liabilities Long-term liabilities outstanding Total liabilities 2012 105.73 146.43 $ 106.58 146.20 252.16 252.78 9.58 8.59 10.71 11.82 20.29 20.41 145.56 142.96 Net position: Net investment in capital assets Restricted Unrestricted Total net position $ 63.56 65.86 * 22.75 231.87 23.55 * 232.37 $ * The fiscal year 2012 net position amounts have been reclassified for comparison with fiscal year 2013 amounts The County’s net position from governmental activities at the end of the fiscal year was $231.87 million. The net position was relatively flat with a small decrease of $0.50 million as recorded in the Statement of Activities. Net investment in capital assets 62.78% of the County net position ($145.56 million) is invested in capital assets (e.g. land, buildings, equipment, and infrastructure), net of related debt. These assets are used to provide services to citizens, but are not available for future spending. The County’s net investment in capital assets increased by 1.82% ($2.60 million) in the current fiscal year. Restricted Net Position 27.41% of the County’s net position ($63.56 million) is subject to external restrictions on how they may be used. The County’s restricted net position decreased by 3.49% ($2.30 million) in the current fiscal year due to the retirement of the revenue bonds payable in the Jail District and reduced fund balance in the Public Works/HURF fund. Unrestricted Net Position The remaining balance of the County’s net position, 9.81% ($22.75 million), is unrestricted and may be used to meet the County’s ongoing obligations to citizens and creditors without constraints established by debt covenants or other legal requirements. Unrestricted net position decreased by 3.40% ($0.80 million) in the current fiscal year. 18 Coconino County Management’s Discussion and Analysis June 30, 2013 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 2013 compared to the prior year. Governmental Activities (in millions) Revenues Program revenues: Charges for services Operating grants and contributions Capital grants and contributions Total program revenue General revenues: State shared revenue Sales taxes Property taxes Grants and contributions not restricted to specific programs Investment earnings Gain on disposal of capital assets Miscellaneous Total general revenue Total revenues 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 Net position, ending 2013 $ $ 12.81 36.15 48.96 2012 $ 13.62 33.96 0.01 47.59 21.67 26.45 20.24 20.26 25.72 21.10 1.90 (0.31) 0.04 0.18 70.17 119.13 1.93 1.16 0.16 70.33 117.92 32.05 37.61 15.96 2.10 12.20 6.64 7.06 5.94 0.07 119.63 (0.50) 232.37 231.87 32.47 33.76 15.96 3.09 11.55 6.91 7.24 5.23 0.18 116.39 1.53 230.84 232.37 $ * * * The fiscal year 2012 revenue amounts have been reclassified for comparison with fiscal year 2013 amounts Overall program revenues increased by 2.88% ($1.37 million) in the current fiscal year. This increase was from a combination of reimbursements and grants received in response to the catastrophic flooding events. Charges for services decreased by 5.95% ($0.81 million) due to a decrease in the number of prisoners being housed for other governments in the County Jail. Program expenses increased 2.78% ($3.24 million) in the current fiscal year. 19 Coconino County Management’s Discussion and Analysis June 30, 2013 Property taxes decreased by 4.08% ($0.86 million) as a result of decreased assessed valuations similar to decreasing market values across the state and southwestern United States. State shared revenue increased 6.96% ($1.41 million) due in part to the moderate rebound in taxable sales at the state level and, to a greater extent, due 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. The 6.45% ($2.19 million) increase in operating grants was from an increase in funding received to cover the mitigation efforts in response to catastrophic flooding disasters caused by the fiscal year 2010 Schultz fire. The current fiscal year investment earnings decrease of 126.72% was from unrecognized capital losses in the current fiscal year. An analysis of investment earnings and unrecognized losses is presented in Note 2 of the financial statements. Revenues by Source - Governmental Activities 2012/2013 Unrestricted Grants and contributions 2% Property taxes 17% Investment earnings < 1% Charges for services 11% Capital grants and contributions < 1% Miscellaneous < 1% Sales taxes 22% Operating grants and contributions 30% State shared revenue 18% Gain on disposal of capital assets < 1% Public Safety expenses increased 11.40% in the current fiscal year due to increased expenditures for the flooding mitigation projects. Health expenses increased 5.63% due to increased costs related to the contracted services to provide Title 36 assessments and related court ordered behavioral health treatment. Education expenses increased 13.58% as a result of increased grant funding. 20 Coconino County Management’s Discussion and Analysis June 30, 2013 Program Revenues and Expenses for Governmemtal Activities Fiscal Year 2013 (In thousands) Expenses Revenues $40,000 $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 (30.35%), followed by sales tax (22.20%), and state shared revenue (18.20%). Public safety is the largest function in expense ($37.61 million), followed by general government ($32.05 million), and highways and streets ($15.96 million). 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 $92.73 million, which is an increase of $1.60 million from last year, or an increase 1.76%. Of the total, $90.96 million (98.09%) constitutes spendable fund balance. Revenues and expenditures for governmental functions overall increased by 1.31% and 5.29%, respectively. These increases were the result of revenues and expenditures related to mitigation projects for catastrophic flooding events. Governmental fund revenues exceeded governmental fund expenditures by $1.53 million in the current fiscal year and the fund balance increased by $1.60 million. 21 Coconino County Management’s Discussion and Analysis June 30, 2013 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 $29.18 million. Spendable fund balance represents 94.98% of the General Fund’s total fund balance. The General Fund’s fund balance increased by $0.77 million. The Public Works/HURF Fund’s fund balance decreased by $1.74 million in the current fiscal year. The decrease was from expenditures exceeding revenues, including the withholding of $0.88 million of County HURF revenues by the state legislature in order to fund State of Arizona programs. The Jail District Fund’s fund balance increased by $2.58 million in the current fiscal year. The fund balance was budgeted to increase by $1.71 million. It increased primarily due to operating expenditures below budget, including vacancy savings. The Parks and Open Spaces Tax Projects Fund’s fund balance increased by $0.69 million in the current fiscal year. This increase was due to a significant decrease in the use of funds for parks and open space projects in the current year. The Public Health Services District Fund’s fund balance decreased by 0.14 million in the current fiscal year. The change in fund balance was primarily from salary savings due to vacancies and an additional General Fund transfer to offset the increased cost of the Title 36 services contract and the decreased property taxes from the previous fiscal year. The Flood Control District Fund’s fund balance decreased by $0.14 million due to decreased property taxes as a result of decreased assessed values within the district. General Fund Budgetary Highlights • • • The final budgeted expenditures for the General Fund at year-end were $362 thousand more than the original adopted budget. This change was primarily due to budget adjustments for construction programs ($83 thousand), various data processing projects ($40 thousand), the 2013 elections ($30 thousand), community initiatives ($41 thousand), and safety and other projects ($146 thousand). For the General Fund, actual expenditures were $23 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 only $43 thousand more than the original adopted budget. For the General Fund, actual revenues exceeded the final budget by $1.82 million. The increase was primarily due to significant increases in intergovernmental revenues, including a $1.41 million increase in State shared revenue. 22 Coconino County Management’s Discussion and Analysis June 30, 2013 Capital Assets and Debt Administration Capital Assets During the current fiscal year, the County added $689 thousand to the County’s buildings inventory, reduced the County’s machinery and equipment inventory by $138 thousand, and added $3.02 million to the County’s infrastructure inventory. The County’s overall estimated value of capital asset inventory increased $0.22 million net of increases in depreciation. See Note 4 to the financial statements found on page 52 of this report. The following table reflects the changes in capital assets for the County for the fiscal year 2013 compared to fiscal year 2012. Governmental Activities (net of depreciation) (in millions) 2013 Land Buildings Machinery and Equipment Infrastructure Construction in Progress Total $ 39.27 54.33 5.32 43.20 4.30 $ 146.42 2012 $ 39.22 55.98 6.16 43.21 1.63 $ 146.20 Long-term Debt At the end of the current fiscal year the County has $0.87 million in special assessment debt outstanding and has retired all outstanding revenue bonds with the final payment in fiscal year 2013. There were no new bond issues in the current year. The long-term liability for future postemployment health benefit liability has increased by $1.08 million to $4.61 million in the current year. This change is the result of $1.13 million in additional annual OPEB cost and only $0.05 million in actual contributions made during fiscal year 2013. 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 State shared sales taxes. Local and State shared sales taxes constitute approximately 40% of the County’s government-wide general revenues and approximately 60% of General Fund revenues. This makes the County’s revenues sensitive to downturns in the economy. County staff incorporated historical trends, local economic trends and national and global economic trends into the County’s fiscal 2013 budget. State shared sales tax and county sales tax revenues stabilized in fiscal year 2012 but are still more than 6% lower than their high in the fiscal year ended in 2007. 23 Coconino County Management’s Discussion and Analysis June 30, 2013 The key elements of the fiscal year 2014 budget are based on the assumption that economic recovery began in fiscal year 2011, but total revenues will not return to our fiscal year 2007 and fiscal year 2008 levels for many years to come. Many major revenues are down by double digit percentages from where they had been. The new level of revenue is referred to as our new normal. We established the following Financial Planning Milestones in the fiscal year 2014 budget: • Align high probability of receipt revenue types with recurring expenditures. • Budgeted amounts above recessionary revenue levels are allocated to one-time or nonmission-critical expenditures. • Adequate reserves for revenue smoothing and an emergency reserve need to be in place to allow for unknown or unplanned events. • To efficiently deliver services local governments need to provide adequate compensation to retain trained and experienced staff. • To be efficient in providing services the County needs to strategically plan for long-term facility and technology resources to have appropriate work space and tools available for staff. The major areas of concern considered in developing the fiscal year 2014 budget are: • 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 consistent pay increases to the extent possible and avoiding increased turnover that would decrease efficiency. • Continuing increases in pension costs that further constrict limited resources. • Continuing to hold 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. 24 THIS PAGE INTENTIONALLY LEFT BLANK BASIC FINANCIAL STATEMENTS Coconino County Statement of Net Position June 30, 2013 Governmental Activities Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments 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 $ 84,778,605 562,707 24,429 638,222 904,802 508,070 2,233,548 159,330 15,295,734 294,633 330,782 43,567,669 102,857,674 252,156,205 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 6,697,198 1,781,989 981,148 111,359 7,300 3,802,661 6,903,102 20,284,757 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 145,559,259 $ The accompanying notes are an integral part of these basic financial statements. 25 3,395,946 18,581,860 23,081,852 1,267,496 2,338,384 612,555 752,952 1,180,014 966,470 11,386,908 22,747,752 231,871,448 Coconino County Statement of Activities Year Ended June 30, 2013 Net (Expense) Revenue and Changes in Net Position Program Revenues 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 $ $ 32,049,113 37,609,509 15,961,841 2,102,071 12,199,793 6,642,756 7,063,893 5,941,255 69,723 $ 119,639,954 $ Operating Capital Charges for Grants and Grants and Services Contributions Contributions 4,465,482 3,107,973 99,728 1,346,328 1,301,249 1,467,637 850,519 171,298 $ 12,810,214 $ 1,311,742 8,738,055 12,216,903 388,075 3,906,368 3,355,071 149,850 6,090,044 36,156,108 $ 1,719 $ 1,719 Total $ (26,271,889) (25,763,481) (3,645,210) (365,949) (6,992,176) (1,820,048) (6,063,524) 320,087 (69,723) $ (70,671,913) General revenues: Taxes: Property taxes, levied for general purposes 8,744,783 Property taxes, levied for library 4,157,084 Property taxes, levied for flood control 2,943,787 Property taxes, levied for accommodation school 33 Property taxes, levied for health services 4,390,334 General county sales tax 11,705,643 Jail district sales tax 11,699,874 Parks and open spaces sales tax 2,923,093 Excise tax 74,510 Franchise tax 47,198 Shared revenue - state sales tax 18,592,227 Shared revenue - state vehicle license tax 3,082,023 Grants and contributions not restricted to specific programs 1,902,703 Investment earnings (316,192) Gain on disposal of capital assets 42,869 Miscellaneous 182,451 Total general revenues 70,172,420 Change in net position (499,493) Net position, July 1, 2012 232,370,941 Net position, June 30, 2013 $ The accompanying notes are an integral part of these basic financial statements. 26 231,871,448 Coconino County Balance Sheet Governmental Funds June 30, 2013 General Fund Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Jail district sales tax Accrued interest Advances to other funds Due from: Other funds Other governments Inventories Prepaid items Total assets $ 25,532,635 Public Works/HURF Fund $ 257,255 109,682 $ 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 Deferred revenue Total liabilities $ Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities and fund balances $ $ 11,592,927 1,258 221,340 49,832 1,442,062 31,862 2,233,548 20,509 1,871,717 6,351,783 343 98,978 35,714,287 143,195 1,857,792 89,015 212,144 618 20,423,310 11,784 14,381,267 1,149,210 988,092 $ $ 1,274,215 117,182 $ $ 279,027 191,925 2,021,102 596,077 39,813 193,703 4,987,997 391,378 64,237 33,302 44,625 1,924,939 284,306 148,595 1,541,383 618 18,497,753 11,784 13,465,630 18,498,371 20,423,310 13,477,414 14,381,267 29,184,907 30,726,290 35,714,287 The accompanying notes are an integral part of these basic financial statements. 27 18,388,585 Jail District Fund $ 903,853 $ Public Health Services District Fund $ $ $ $ 1,153,529 Flood Control District Fund $ 2,293,501 Parks and Open Spaces Tax Projects Fund $ 10,457,446 Nonmajor Governmental Funds $ 14,094,523 562,707 24,429 140,376 49,896 100,561 4,856 1,963 2,732 6,149 18,790 572,357 1,069,190 14,459 3,439,720 557,199 2,001,199 1,807,906 $ 5,859,246 $ 154 11,035,552 36,243 19,821,392 $ 2,567,703 5,724 1,000,000 $ 183,005 3,171,085 572,390 132,567 11,965 2,828 123,844 3,900 913 1,101 397,410 1,230,111 508,103 4,082,443 183,005 1,757,969 1,940,974 3,171,085 $ Total Governmental Funds $ 140,030 478,966 508,070 638,222 867,961 508,070 2,233,548 157,240 1,582,015 27,366 139,953 $ $ 722,090 228,374 582,015 83,513,146 562,707 24,429 4,691,942 15,295,734 343 330,782 $ 110,406,139 $ 6,576,600 1,666,692 1,582,015 15,894 2,173,951 168,339 38,244 613,542 4,526,555 4,996,595 981,148 111,359 1,757,383 17,671,792 1,776,803 154 11,019,504 36,243 15,258,594 1,776,803 5,859,246 11,019,658 11,035,552 15,294,837 19,821,392 1,773,187 61,776,253 29,184,907 92,734,347 $ 110,406,139 $ $ The accompanying notes are an integral part of these basic financial statements. 28 Coconino County Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2013 Fund balances − total governmental funds $ 92,734,347 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. 145,790,899 Some receivables are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 1,750,083 Internal service funds are used by management to charge the costs of certain activities, such as automotive maintenance, to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the Statement of Net Position 2,301,882 Some 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 position of governmental activities (10,705,763) $ 231,871,448 The accompanying notes are an integral part of these basic financial statements. 29 THIS PAGE INTENTIONALLY LEFT BLANK Coconino County Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2013 General Fund Revenues: Property taxes Other taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ 8,768,956 11,830,598 674,468 1,125,686 24,607,064 1,749,253 (132,118) 249,799 204,636 49,078,342 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 Public Works/HURF Fund Jail District Fund $ $ 12,885 10,394,996 12,145 (68,707) 6,936 1,425,757 (57,986) 18,764 10,370,083 28,198,760 12,526,795 457,151 11,699,874 2,894 13,077,475 12,078,544 12,787,343 895,900 1,479,891 462,350 1,500 12,080,044 44,020,847 12,787,343 Excess (deficiency) of revenues over expenditures 5,057,495 (2,417,260) 997,431 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 4,625 3,860,918 (8,157,137) (4,291,594) 11,992 1,605,077 (943,066) 674,003 2,457,240 (876,413) 1,580,827 (1,743,257) 2,578,258 20,241,628 18,498,371 10,899,156 13,477,414 Net change in fund balances 765,901 Fund balances, July 1, 2012 Fund balances, June 30, 2013 $ 29,960,389 30,726,290 The accompanying notes are an integral part of these basic financial statements. 30 $ $ Public Health Services District Fund $ 4,407,951 2,093 Flood Control District Fund $ 729,585 26 3,782,116 552,135 (7,867) 131,096 4,785 9,601,920 2,966,931 Parks and Open Spaces Tax Projects Fund $ 2,923,093 Nonmajor Governmental Funds $ 308,564 16,900,544 5,025,412 (25,433) 282,828 378,593 27,501,137 4,696,442 (50,514) 3,376 2,875,955 7,667,803 2,850,873 6,297,169 68,021 1,820,482 20,320,244 26,455,658 454,223 1,428,438 1,434,276 60,388,098 8,764,702 (360,692) 674,720 613,048 120,172,715 2,144,500 5,417,507 4,642,912 5,321,294 69,366 31,049,633 39,373,290 13,312,515 1,820,482 12,036,240 6,464,632 6,122,803 5,783,644 2,213,866 2,144,500 396,669 68,223 26,952,516 396,669 69,723 118,643,497 (62,905) 731,455 548,621 1,529,218 4,583,892 (1,397,255) 3,186,637 (76,255) (76,255) 400 (38,629) (38,229) (138,982) (139,160) 693,226 740,074 7,730,708 12,036,240 151,225 12,927,539 7,730,708 (3,325,619) $ $ 454,223 11,500 (18,067) 10,997 4,176,406 Total Governmental Funds 2,079,956 1,940,974 $ 1,915,963 1,776,803 $ 10,326,432 11,019,658 3,577 1,947,166 (2,912,404) (961,661) (413,040) $ 15,707,877 15,294,837 The accompanying notes are an integral part of these basic financial statements. 31 20,194 14,454,693 (14,401,159) 73,728 1,602,946 $ 91,131,401 92,734,347 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, 2013 Net change in fund balances − total governmental funds $ 1,602,946 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 6,962,553 (6,891,269) 71,284 Governmental funds do not report income from the donation of capital assets. However, in the Statement of Activities income from the donation of capital assets is reported. Donated capital assets 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. Increase in compensated absences Increase in claims and judgments Increase in future postemployment health benefits 110,601 (91,831) (87,197) (1,077,198) (1,256,226) 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 396,669 The sale of capital assets in the governmental funds reflects proceeds. However, in the Statement of Activities the sale of capital assets reflect the net gain (loss). Sale of capital assets (11,861) Revenues in the Statement of Activities that do not provide current financial resources are not reported in the funds. (1,184,746) 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 (228,160) $ The accompanying notes are an integral part of these basic financial statements. 32 (499,493) Coconino County Statement of Net Position Proprietary Fund June 30, 2013 Governmental Activities Internal Service Fund Assets Current assets: Cash and cash equivalents Receivables (net of allowances for uncollectibles): Accounts Accrued interest Due from other funds Inventories Total current assets $ 1,265,459 36,841 2,090 359,958 294,290 1,958,638 Noncurrent assets: Capital assets, net of accumulated depreciation: Buildings, net Equipment, net Capital assets, net Total noncurrent assets 53,147 581,297 634,444 634,444 Total assets 2,593,082 Liabilities Current liabilities: Accounts payable Accrued payroll and employee benefits Due to other funds Total current liabilities 120,598 115,297 55,305 291,200 Total liabilities Net Position Net investment in capital assets Unrestricted 291,200 634,444 1,667,438 Total net position $ The accompanying notes are an integral part of these basic financial statements. 33 2,301,882 Coconino County Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Fund Year Ended June 30, 2013 Governmental Activities Internal Service Fund Operating revenues: Charges for services Total operating revenues $ Operating expenses: Personal services Supplies Utilities Repairs and maintenance Travel Depreciation Total operating expenses 3,270,586 3,270,586 721,024 2,326,044 18,489 170,159 3,166 224,416 3,463,298 Operating loss (192,712) Nonoperating revenues: Investment earnings Gain on disposal of capital assets Total nonoperating revenues (4,589) 22,675 18,086 Loss before transfers (174,626) Transfers out (53,534) Decrease in net position (228,160) Total net position, July 1, 2012 2,530,042 Total net position, June 30, 2013 $ The accompanying notes are an integral part of these basic financial statements. 34 2,301,882 Coconino County Statement of Cash Flows Proprietary Fund Year Ended June 30, 2013 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 Governmental ActivitiesInternal Service Fund $ Cash flows from noncapital financing activities: Cash transfers to other funds Net cash used for noncapital financing activities 3,272,981 (2,547,330) (716,627) 9,024 (53,534) (53,534) 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 26,433 (285,897) (259,464) Cash flows from investing activities: Interest on investments Net cash used for investing activities (2,841) (2,841) Net decrease in cash and cash equivalents (306,815) Cash and cash equivalents, July 1, 2012 1,572,274 Cash and cash equivalents, June 30, 2013 $ Reconciliation of operating loss to net cash provided by operating activities: Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Increase in: Accounts receivable Inventories Due from other funds Accrued payroll and employee benefits Due to other funds Decrease in: Accounts payable Net cash provided by operating activities The accompanying notes are an integral part of these basic financial statements. 35 $ 1,265,459 (192,712) 224,416 (15,539) (5,558) (36,537) 7,563 54,471 $ (27,080) 9,024 Coconino County Statement of Fiduciary Net Position Fiduciary Funds June 30, 2013 Investment Trust Funds Assets Cash and cash equivalents Cash and investments held by trustee Interest and dividends receivable Total assets $ 114,820,798 201,141 115,021,939 Liabilities Deposits held for others Due to other governments Total liabilties Agency Fund $ - 4,320,414 193,632 4,514,046 - Net Position Held in trust for investment trust participants $ 115,021,939 The accompanying notes are an integral part of these basic financial statements. 36 3,423,173 1,090,873 4,514,046 $ - Coconino County Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended June 30, 2013 Investment Trust Funds Additions: Contribution from participants Investment earnings: Interest and dividends Net decrease in fair value of investments Total investment earnings Total additions $ 486,435,105 974,549 (1,650,822) (676,273) 485,758,832 Deductions: Distributions to participants Total deductions 468,416,533 468,416,533 Change in net position 17,342,299 Net position, July 1, 2012 97,679,640 Net position, June 30, 2013 $ The accompanying notes are an integral part of these basic financial statements. 37 115,021,939 Coconino County Notes to Financial Statements June 30, 2013 Note 1 – Summary of Significant Accounting Policies The accounting policies of Coconino County conform to generally accepted accounting principles applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB). 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. 38 Coconino County Notes to Financial Statements June 30, 2013 The following table describes the County’s component units: For Separate Description; Criteria Reporting Financial for Inclusion Method Statements Coconino County A tax-levying district that provides Blended Not available Flood Control District flood control systems; the County’s Blended Not available Blended Not available Blended Not available Blended Not available Blended Not available Component Unit Board of Supervisors serves as the board of directors Coconino County Provides Library District services for County’s residents; the and maintains library County’s Board of Supervisors serves as the board of directors Coconino County Constructs Special Assessment sidewalks, curbs and gutters, and Districts irrigation systems within the County; or improves roads, the County’s Board of Supervisors serves as the board of directors Coconino County Street Lighting Districts Operates and maintains street lighting in areas outside local city jurisdictions; the County’s Board of Supervisors serves as the board of directors Coconino County Jail A tax-levying district that acquires, District constructs, operates, maintains, and finances county jails and jail systems; the County’s Board of Supervisors serves as the board of directors Public District Health Services A tax-levying district that provides and maintains health services for County residents; the County’s Board of Supervisors serves as the board of directors 39 Coconino County Notes to Financial Statements June 30, 2013 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 usefulness of the information. 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. The County does not allocate indirect expenses to programs or functions. 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 imposed by the County, 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. 40 Coconino County Notes to Financial Statements June 30, 2013 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 expenditures 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. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. 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 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. 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 service that are funded by a $0.4000 per $100 of assessed valuation property tax. 41 Coconino County Notes to Financial Statements June 30, 2013 The Parks and Open Spaces Tax Projects Fund is a capital projects fund (previously reported as a special revenue fund) 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. The County 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. The investment trust funds account for pooled and nonpooled 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, with the exception of agency funds, 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 is both restricted and unrestricted net position 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 42 Coconino County Notes to Financial Statements June 30, 2013 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 tax, 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 longterm 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. D. Cash and Investments For purposes of its statement of cash flows, the County considers 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 to be cash equivalents. 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. 43 Coconino County Notes to Financial Statements June 30, 2013 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. 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. 44 Coconino County Notes to Financial Statements June 30, 2013 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 statements and proprietary funds are as follows: Capitalization Depreciation Estimated Threshold Method Useful Life N/A N/A $ 5,000 N/A N/A Buildings 5,000 Straight-Line 25-40 Years Machinery and equipment 5,000 Straight-Line 3-25 Years Infrastructure 5,000 Straight-Line 15-50 Years Land Construction in progress All I. Fund Balance Classifications Fund balances of the governmental funds are reported within classifications based on the hierarchy of the constraints placed on the use of those resources. 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. 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 approved by the County’s Board of Supervisors, which is the highest level of decision-making authority within the County. The constraints placed on committed fund balances can only be removed or changed by the Board of Supervisors. Assigned fund balances are resources constrained by the County’s intent to be used for specific purposes, but are neither restricted nor committed. The Board of Supervisors has authorized the County Manager to make assignments of resources for a specific purpose. 45 Coconino County Notes to Financial Statements June 30, 2013 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 uses restricted fund balances first. For the disbursement of unrestricted fund balances, the County will use committed amounts first, followed by assigned amounts, and lastly unassigned amounts. J. Investment Earnings Investment earnings are composed of interest, dividends, and net changes in the fair value of applicable investments. K. Compensated Absences Compensated absences payable consist of vacation leave, compensatory time, and a calculated amount of sick leave earned by employees based on services already rendered. Employees may accumulate up to 240 hours of vacation depending on years of service. Upon termination of employment, all unused and unforfeited vacation benefits are paid to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide and proprietary funds’ 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 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 of sick leave hours. Generally, sick leave benefits provide for ordinary sick pay and are cumulative but are forfeited upon termination of employment. However, for employees who terminate with a minimum of 20 years of 46 Coconino County Notes to Financial Statements June 30, 2013 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 funds’ financial statements. Note 2 – Deposits and Investments Arizona Revised Statutes (A.R.S.) authorize the County to invest public monies in 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; interest-earning investments such as savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; and specified commercial paper, bonds, debentures, and notes issued by corporations organized and doing business in the United States; 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. Corporate bonds, debentures, and notes must be rated within the top three ratings by a nationally recognized rating agency. 3. Fixed income securities must carry one of the two highest ratings by Moody’s investor’s service and Standard and Poor’s rating service. If only one of the abovementioned services rates the security, it must carry the highest rating of that service. Custodial credit risk Statutes require collateral or demand deposits and certificates of deposit at 101 percent of all deposits not covered by federal depository insurance. Concentration of credit risk Statutes do not include any requirements for concentration of credit risk. 47 Coconino County Notes to Financial Statements June 30, 2013 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 for foreign investments. Deposits — At June 30, 2013, the carrying amount of the County’s deposits was $26,858,913 and the bank balance was $33,054,010. The County does not have a formal policy with respect to custodial credit risk. At June 30, 2013, $3,795,740 of the County’s bank balance was exposed to custodial credit risk as follows: Uninsured with collateral held by the pledging financial institution Total $ $ 3,795,740 3,795,740 Investments — The County’s investments at June 30, 2013, were as follows: Investment Type U.S. agency securities State Treasurer's investment pools #7 Corporate bonds Municipal bonds Mutual funds-debt Subtotal, debt securities Mutual funds-equity Total $ $ Amount 124,600,979 10,437,703 34,991,826 7,144,303 474,979 177,649,790 127,579 177,777,369 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 the participant’s pool shares and the participant’s shares are not identified with specific investments. 48 Coconino County Notes to Financial Statements June 30, 2013 Credit risk— The County does not have a formal investment policy with respect to credit risk. At June 30, 2013, credit risk for the County’s investments was as follows: Investment Type U.S. agency securities Corporate bonds State Treasurer's investment pools #7 Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Municipal bonds Corporate bonds Municipal bonds Municipal bonds Municipal bonds Municipal bonds Corporate bonds Mutual funds-debt Municipal bonds Municipal bonds Municipal bonds Municipal bonds Municipal bonds Corporate bonds Municipal bonds Municipal bonds Municipal bonds Rating Aaa A1 Unrated A2 A3 Aa3 Aaa Baa2 Aa2 Aa2 Aaa A1 Aa3 Unrated Baa1 Unrated AAA A2 Aa1 AA Aa1 A3 AA+ AAA Rating Agency Moody's Moody's Not applicable Moody's Moody's Moody's Moody's Moody's Moody's Moody's Moody's Moody's Moody's Not Applicable Moody's Not Applicable Standard and Poor's Standard and Poor's Moody's Moody's Standard and Poor's Moody's Moody's Standard and Poor's Standard and Poor's Amount $124,600,979 11,497,508 10,437,703 6,362,929 4,994,074 4,933,284 3,157,588 2,154,868 1,974,986 1,159,197 1,150,797 704,576 621,431 545,000 540,318 474,979 435,086 399,172 398,558 319,288 200,728 192,060 156,557 141,834 96,290 $ 177,649,790 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 the possession of an outside party. The County does not have a formal policy with respect to custodial credit risk. At June 30, 2013, the County had $124,600,979 of U.S. agency securities, $7,144,303 of municipal bonds, and $34,991,826 of corporate bonds uninsured and held by the counterparty. Concentration of credit risk— The County does not have a formal policy with respect to concentration of credit risk. The County had investments at June 30, 2013, of five percent or 49 Coconino County Notes to Financial Statements June 30, 2013 more in Federal Home Loan Bank, Federal Farm Credit Bank, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation. These investments were 23.17%, 12.79%, 22.63%, and 7.95%, respectively, of the County’s total investments. Interest rate risk— The County does not have a formal policy with respect to interest rate risk. At June 30, 2013, the County had the following investments in debt securities: Investment Type U.S. agency securities Corporate bonds State Treasurer's investment pools #7 Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Municipal bonds Corporate bonds Municipal bonds Municipal bonds Municipal bonds Municipal bonds Corporate bonds Municipal bonds Municipal bonds Municipal bonds Municipal bonds Mutual funds-debt Municipal bonds Corporate bonds Mutual funds-debt Municipal bonds Municipal bonds Municipal bonds Mutual funds-debt $ Amount $124,600,979 11,497,508 10,437,703 6,362,929 4,994,074 4,933,284 3,157,588 2,154,868 1,974,986 1,159,197 1,150,797 704,576 621,431 545,000 540,318 435,086 399,172 398,558 319,288 244,048 200,728 192,060 174,008 156,557 141,834 96,290 56,923 177,649,790 50 Weighted Average Maturity in Years 4.057 1.048 0.050 0.652 0.609 0.551 0.257 0.134 0.442 0.007 0.292 0.260 0.204 0.070 0.031 0.118 0.131 0.125 0.130 6.180 0.023 0.027 4.600 0.033 0.021 0.029 4.600 Coconino County Notes to Financial Statements June 30, 2013 A reconciliation of cash and investments to amounts shown on the Statement of Net Position follows: Cash, deposits, and investments: Cash on hand Amount of deposits Amount of investments Total Statement of Net Position: Cash and cash equivalents Investments Cash and investments held by trustee(s) Total $ 64,303 26,858,913 177,777,369 $204,700,585 Governmental Activities Investment Trust Funds Agency Funds $ 84,778,605 562,707 $ 114,820,798 $ 3,423,173 $203,022,576 562,707 1,090,873 1,115,302 $ 4,514,046 $204,700,585 24,429 $ 85,365,741 $114,820,798 Total Investment Earnings as shown in the Statement of Revenues, Expenditures, and Changes in Fund Balance for Governmental Funds reflect a loss of $360,692. This is the result of Unrealized Losses recorded due to the decrease in market value on the securities held by the County Treasurer as of June 30, 2013. Governmental Funds: General Fund Public Works/HURF Fund Jail District Fund Park and Open Spaces Tax Projects Public Health Services District Fund Flood Control District Fund Other Governmental Funds Total Interest Distributed $ 201,221 144,430 79,210 75,177 10,405 23,068 157,627 $ 691,138 Interest Accrued $ 49,831 31,862 20,509 18,789 2,730 6,149 27,365 $ 157,235 Total Interest $ 251,052 176,292 99,719 93,966 13,135 29,217 184,992 $ 848,373 Unrealized Loss $ (383,170) (244,999) (157,705) (144,480) (21,002) (47,284) (210,425) $ (1,209,065) Investment Earnings $ (132,118) (68,707) (57,986) (50,514) (7,867) (18,067) (25,433) $ (360,692) It is currently projected that none of the debt securities will be redeemed until the maturity date of the individual security. Therefore, it is expected that all securities will be redeemed at face value plus any accrued interest. 51 Coconino County Notes to Financial Statements June 30, 2013 Note 3– Receivables Due from other governments—Amounts due from other governments at June 30, 2013, include $3,101,953 and $1,491,140 in state-shared revenue from sales taxes and fuel taxes, respectively; $197,640 from the State of Arizona for state vehicle license tax; $2,233,686 in county sales tax; $557,199 in parks and open space sales tax; $4,065,086 in grants from the federal government; $574,945 in grants from various state agencies; $815,419 in reimbursements from the Federal Emergency Management Agency, and $914,832 in reimbursements front the Arizona Department of Emergency Management. The balance of $1,343,834 is composed of miscellaneous receivables from federal, state, and local government. Note 4– Capital Assets Capital asset activity for the year ended June 30, 2013, 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 Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Total Balance 7/1/2012 $ 39,221,284 1,625,952 40,847,236 87,430,200 36,533,142 92,744,186 216,707,528 31,447,048 30,372,326 49,537,794 111,357,168 105,350,360 $ 146,197,596 52 Increases $ 47,127 3,715,625 3,762,752 688,943 919,243 3,018,571 4,626,757 2,338,854 1,751,973 3,024,858 7,115,685 (2,488,928) $ 1,273,824 Decreases $ Balance 6/30/2013 1,042,319 1,042,319 $ 39,268,411 4,299,258 43,567,669 1,056,945 1,056,945 88,119,143 36,395,440 95,762,757 220,277,340 1,053,187 1,053,187 3,758 $ 1,046,077 33,785,902 31,071,112 52,562,652 117,419,666 102,857,674 $ 146,425,343 Coconino County Notes to Financial Statements June 30, 2013 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 govenmental activities depreciation expense $ $ 901,663 1,011,315 3,775,930 231,021 123,002 90,439 656,109 101,790 224,416 7,115,685 Construction and Other Significant Commitments—The County had major contractual commitments related to various capital projects at June 30, 2013, for the repair and construction of a major flood control project and facilities upgrades. At June 30, 2013, the County had spent $5,067,144 on these projects and had remaining contractual commitments with contractors totaling $2,067,359. Flood Control property tax, highway user revenues, and federal and state emergency management reimbursements, and state grants will fund these projects. Note 5 – Long-Term Liabilities The following schedule details the County’s long-term liability and obligation activity for the year ended June 30, 2013: Balance July 1, 2012 Governmental Activities Additions Reductions Balance June 30, 2013 Due within 1 year Bonds payable: Revenue bonds 1,970,000 - Special assessment bonds with governmental commitment 1,262,753 - 396,669 866,084 415,552 Total bonds payable 3,232,753 - 2,366,669 866,084 415,552 3,267,588 119,521 Compensated absences payable Claims and judgments payable Future postemployment health benefit liability (Note 8) Governmental activities long-term liabilities $ $ $ 1,970,000 $ - 4,687,621 361,152 3,290,540 164,063 3,198,709 76,866 4,779,452 448,349 3,534,680 1,128,014 50,817 4,611,878 11,816,206 $ 53 4,582,617 $ 5,693,061 $ 10,705,763 $ - $ 3,802,661 Coconino County Notes to Financial Statements June 30, 2013 Revenue Bonds—The County’s revenue bonds were issued specifically to finance a jail and related facilities. Future revenues from a voter-approved sales tax are pledged to repay $21,130,000 in revenue bonds issued in 1998. The revenue bonds are payable from Jail District sales tax revenues through 2013. At June 30, 2013, $0 in principal remains outstanding, along with no future interest payments. Revenue bonds outstanding at June 30, 2013, were as follows: Description Revenue bonds Original Amount $ 21,130,000 Maturity Ranges 7/1/2006-12 Interest Rates 4.25-5.0% Outstanding Principal $ - 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. 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, 2013, $866,084 in principal remains outstanding, along with future interest payments totaling $110,993 to be paid by special assessment revenues. Special assessment bonds outstanding at June 30, 2013, were as follows: Description Special assessment bonds with governmental commitment Original Amount $ 5,186,217 54 Maturity Ranges Interest Rates 7/1/2006-19 2.47-7.50% Outstanding Principal $ 866,084 Coconino County Notes to Financial Statements June 30, 2013 The following schedule details debt service requirements to maturity for the County’s special assessment bonds payable at June 30, 2013: Year Ending June 30 2014 2015 2016 2017 2018 2019 Total Governmental Activities Assessment Bonds Principal Interest $ 415,552 $ 43,132 105,532 22,948 85,000 18,128 89,000 13,678 94,000 9,017 77,000 4,090 $ 866,084 $ 110,993 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 2013, the County paid for compensated absences as follows: 49.17 percent from the General Fund, 33.50 percent from major funds, and 17.33 percent from other funds. The County paid for claims and judgments from the General Fund. 55 Coconino County Notes to Financial Statements June 30, 2013 Note 6 – Fund Balance Classifications of Governmental Funds The fund balance classifications of the governmental funds as of June 30, 2013, were as follows: Public Works/HURF Fund General Fund Public Health Services District Fund Jail District Fund Flood Control District Fund Parks and Open Spaces Tax Projects Other Governmental Funds Total Governmental Funds Fund balances: Nonspendable: Advances $ Inventories Prepaid items Total nonspendable 1,442,062 - $ 343 $ - - $ - - $ - - $ - - $ - - $ - $ 1,442,062 98,978 618 11,784 183,005 - 154 36,243 330,782 1,541,383 618 11,784 183,005 154 36,243 1,773,187 343 Restricted for: Debt Service - - - - - - 466,488 466,488 Highways and Streets - 18,497,753 - - - - 4,538,856 23,036,609 Jail and Sheriff - - 13,465,630 - - - 1,306,819 14,772,449 Flood Control - - - - 1,776,803 - - 1,776,803 Culture and Recreation - - - - - - 646,567 646,567 Health - - - 1,757,969 - - - 1,757,969 Capital Projects - - - - - 11,019,504 367,250 11,386,754 Education - - - - - - 1,159,014 1,159,014 Sanitation - - - - - - 1,267,496 1,267,496 Emergency Services - - - - - - 51,437 51,437 Welfare - - - - - - 608,169 608,169 Probation - - - - - - 1,453,665 1,453,665 Superior Court - - - - - - 641,699 641,699 Justice Courts - - - - - - 474,794 474,794 Public and Legal Defenders - - - - - - 87,942 87,942 County Attorney - - - - - - 1,213,820 1,213,820 General Govt Services - Total restricted Unassigned Total fund balances - - - - - 974,578 974,578 18,497,753 13,465,630 1,757,969 1,776,803 11,019,504 15,258,594 61,776,253 18,498,371 $ 13,477,414 29,184,907 $ 30,726,290 29,184,907 $ $ 1,940,974 $ 1,776,803 $ 11,019,658 $ 15,294,837 $ Note 7 – 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 the State Compensation Fund of Arizona to provide workers compensation coverage for employees. There is no deductible associated with this coverage and no loss limit per claim. In 2013, one claim resulting from a car accident was reserved for $120,000. Employer liability coverage has been endorsed onto our commercial general liability coverage up to $1,000,000 in coverage. 56 92,734,347 Coconino County Notes to Financial Statements June 30, 2013 The County self-insures on commercial general liability for the first $125,000 per occurrence. A self-insurance retention fund has been established for these losses. The County purchases coverage from insurers for commercial general liability up to $30 million. For real property and business personal property damage coverage the County has a $25,000 deductible with blanket coverage up to the property values. Crime coverage is also a $25,000 deductible with limits of $1,000,000. Settled claims for commercial general liability and crime coverage have not exceeded either the self-insurance retention or the $25,000 deductible in the past three fiscal years. Four claims for property losses have exceeded the $25,000 deductible in the past three fiscal years. No settled claims for general liability, crime coverage or property damage exceeded commercial insurance coverage in the past three years. Note 8 – Pensions and Other Postemployment Benefits Pension Plan Descriptions—The County contributes to four plans, two of which are described below. The other two, the Elected Officials Retirement Plan and the Corrections Officer Retirement Plan, are not described due to their relative insignificance to the County’s financial statements. The plans are component units of the State of Arizona and benefits are established by state statute, and the plans generally provide retirement, long-term disability, and health insurance premium benefits, including death and survivor benefits. The retirement benefits are generally paid at a percentage, based on years of service, of the retirees’ average compensation. Long-term disability benefits vary by circumstance, but generally pay a percentage of the employee’s monthly compensation. Health insurance premium benefits are generally paid as a fixed dollar amount per month towards the retiree’s healthcare insurance premiums, in amounts based on whether the benefit is for the retiree or for the retiree and his or her dependents. The Arizona State Retirement System (ASRS) administers a cost-sharing, multiple-employer defined benefit pension plan; a cost-sharing, multiple-employer defined benefit health insurance premium benefit plan; and a cost-sharing, multiple-employer defined benefit longterm disability plan, that covers employees of the State of Arizona and participating political subdivisions and school districts. The ASRS is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. 57 Coconino County Notes to Financial Statements June 30, 2013 The Public Safety Personnel Retirement System (PSPRS) administers an agent multipleemployer defined benefit pension plan and an agent multiple-employer defined benefit health insurance premium benefit plan that covers public safety personnel who are regularly assigned hazardous duty as employees of the State of Arizona and participating political subdivisions. The PSPRS, acting as a common investment and administrative agent, is governed by a seven-member board, known as the Board of Trustees, and the participating local boards according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. Each plan issues a publicly available financial report that includes its financial statements and required supplementary information. A report is available at their website or may be obtained by writing or calling the applicable plan. ASRS PSPRS 3300 North Central Avenue P.O. Box 33910 Phoenix, AZ 85067-3910 (602) 240-2000 or (800) 621-3778 www.azasrs.gov 3010 E. Camelback Road, Suite 200 Phoenix, AZ 85016-4416 (602) 255-5575 www.psprs.com Funding Policy—The Arizona State Legislature establishes and may amend active plan members’ and the County’s contribution rates for the ASRS and PSPRS. Cost-sharing plan—For the year ended June 30, 2013, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.14 percent (10.90 percent for retirement and 0.24 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 11.14 percent (10.25 percent retirement, 0.65 percent for health insurance premium benefit, and 0.24 percent long-term disability) of the members’ annual covered payroll. 58 Coconino County Notes to Financial Statements June 30, 2013 The County’s contributions to ASRS for the current and two preceding years, all of which equal the required contributions, were as follows: Years ended June 30, 2013 2012 2011 Retirement Fund $3,587,945 3,411,576 3,124,217 Health Benefit Supplemental Fund $ 227,528 217,760 204,582 Long-Term Disability Fund $ 84,010 82,956 86,687 Agent plan—For the year ended June 30, 2013, active PSPRS members were required by statute to contribute 9.55 percent of the members’ annual covered payroll and the County was required to contribute at the actuarially determined rate of 52.78 percent, the aggregate of which is the actuarially required amount. The health insurance premium benefit portion of the contribution rate was actuarially set at 2.35 percent of covered payroll. Actuarial Methods and Assumptions—The contribution requirements for the year ended June 30, 2013 were established by the June 30, 2011 actuarial valuations, and those actuarial valuations were based on the following actuarial methods and assumptions. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding funded status of the plans 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 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. 59 Coconino County Notes to Financial Statements June 30, 2013 Projections of benefits are based on 1) the plans as understood by the County and plans’ members 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 that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions used to establish the fiscal year 2013 contribution requirements are as follows: Actuarial valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation Actuarial assumptions: Investment rate of return Projected salary increases Payroll growth Cost-of-living adjustments June 30, 2011 Entry age Normal Level percent-of-pay closed 25 years for unfunded actuarial liability 20 years for overfunded actuarial liability 7- year smoothed market value 8.25% 5.0% - 8.0% 5% None Annual Pension /OPEB Cost—The County’s pension cost for the agent plan for the year ended June 30, 2013, and related information follows. This is an estimate based on what was actually paid. PSPRS Pension PSPRS Health Insurance Premium Benefit Annual pension cost $ 1,314,970 $ 36,223 Contributions made $ 1,314,970 $ 36,223 60 Coconino County Notes to Financial Statements June 30, 2013 Trend Information—Annual pension cost information for the current and two preceding years follows for the PSPRS. Annual cost information for the current year and two preceding years is as follows. Year Ended June 30, Pension 2013 2012 2011 Health Insurance Premium Benefit 2013 2012 2011 Annual Pension Cost (APC) Percentage of APC Contributed $ 1,314,970 949,301 857,576 100% 100% 100% 36,223 38,569 35,060 100% 100% 100% Net Pension/ OPEB Obligation $ - - Funded Status— The funded status of the plan as of the most recent valuation date, June 30, 2013, along with the actuarial assumptions and methods used in that valuation follows. Actuarial accrued liability Actuarial value of assets Unfunded actuarial accrued liability (funding excess) Funded ratio Covered payroll Unfunded actuarial accrued liability (funding excess) as a percentage of covered payroll 61 Pension $ 32,979,729 11,083,591 21,896,138 33.6% 2,805,923 780.40% Health Insurance Premium Benefit $ 830,335 830,335 2,805,923 29.59% Coconino County Notes to Financial Statements June 30, 2013 The actuarial methods and assumptions used for the most recent valuation date are as follows: Actuarial valuation date Actuarial cost method Amortization method June 30, 2013 Entry age Normal Level percent-of-pay closed Remaining amortization period 23 years for underfunded 20 years for overfunded 7-year smoothed market value 80%/120% market Asset valuation Actuarial assumptions: Investment rate of return Projected salary increases Payroll growth Cost-of-living adjustments 7.85% 4.5% - 8.5% 4.5% None 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 retiree’s 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. 62 Coconino County Notes to Financial Statements June 30, 2013 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-you-go 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 2013 and the two preceding years were as follows: Fiscal Year Ended 6/30/2013 6/30/2012 6/30/2011 Annual OPEB Cost $ 1,128,014 $ 1,137,417 1,047,505 Actual Contributions $ 50,817 $ 517,162 176,809 Percentage of Annual OPEB Cost Contributed 4.50% 45.47% 16.88% Net OPEB Obligation $ 1,077,197 $ 620,255 870,696 Components of Annual OPEB Costs and Net OPEB Obligation—The annual components of OPEB cost and net OPEB obligation as of June 30, 2013 follows: Annual required contribution (ARC) $ 1,185,839 Interest on existing net OPEB obligation $ 158,748 ARC adjustment $ (216,573) Increase in OPEB $ 1,077,197 $ Net OPEB 4,611,878 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, 2013, was as follows: (1) Actuarial Actuarial Valuation value of plan Date assets 7/1/2013 - (2) Actuarial accrued liability (AAL) 8,472,061 (3) Funded ratio (1) / (2) 0.00% 63 (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% Coconino County Notes to Financial Statements June 30, 2013 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 understood by the County and plan’s members 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 that are 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: Valuation date Acturial 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 4.50% 65 Based on the assumptions for the ASRS actuarial 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 64 Coconino County Notes to Financial Statements June 30, 2013 Note 9 – Interfund Balances and Activity Interfund Receivables and Payables—Interfund balances at June 30, 2013, 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 Jail District Fund Public Health Services District Fund $ 78,370 $ 571,467 Public Works/ General Fund HURF Fund Flood Control District Fund Nonmajor Governmental Funds Internal Service Fund $ $ Total Payable from General Fund $ - Public Works/HURF Fund Jail District Fund Public Health Services District Fund Flood Control District Fund Parks and Open Spaces Tax Fund Nonmajor Governmental Funds $ - 1,252,576 118,689 $ 2,021,102 84,160 - - - 14,459 96,645 196,114 391,378 215,344 - - 54 - 53,460 15,448 284,306 99,490 - 10,405 - - - 13,949 123,844 - - - - - - 913 913 413 - - - - 688 - 1,101 1,472,310 87,890 240 836 - 597,830 14,845 2,173,951 - 55,305 - - - - - 55,305 Internal Service Fund Total $ 1,871,717 $ 143,195 $ 89,015 $ 572,357 $ 14,459 $ 2,001,199 $ 359,958 $ 5,051,900 Interfund Transfers—Interfund transfers for the year ended June 30, 2013, were as follows: Transfer to Public Works/ General Fund HURF Fund Public Health Services District Fund Jail District Fund Parks and Open Spaces Fund Nonmajor Governmental Funds Total Transfer from 25,000 $ 2,457,240 $ 4,583,892 Public Works/HURF Fund General Fund $ 870,070 - - - - 72,996 943,066 Jail District Fund 824,878 - - - - 51,535 876,413 1,397,255 Public Health Services District Fund - $ $ 400 $ 1,090,605 $ 8,157,137 1,397,255 - - - - - Flood Control District Fund 76,255 - - - - - 76,255 Parks and Open Spaces Tax Fund 38,629 - - - - - 38,629 600,297 1,580,077 - - - 732,030 2,912,404 53,534 - - - - - 53,534 1,947,166 $ 14,454,693 Nonmajor Governmental Funds Internal Service Fund Total $ 3,860,918 $ 1,605,077 $ 2,457,240 $ 4,583,892 $ 400 $ Interfund transfers are used to move revenues from the fund that collects them to the fund that expends them. 65 Coconino County Notes to Financial Statements June 30, 2013 Advances From/To Other Funds Advances from/to other funds represent monies owed from various County Road Improvement Districts (nonmajor governmental funds) to the Forest Fee Revolving Fund (nonmajor governmental fund) for bonds issued by the Road Districts to fund road improvements. The outstanding amount of these advances as of June 30, 2013 was $89,953. The County Road Improvement Districts are paying interest on the advances. The interest rates range from 2.470% to 4.030%. The General Fund has advanced $435,320 to the Toho Tolani Improvement District to assist with attorney fees, $6,742 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 Forest Fees Fund has advanced funds to the Toho Tolani Improvement District to assist with attorney fees. The $1 million advance to the Flood Control District is expected to be paid back in fiscal years 2016 through 2018. The advances to Toho Tolani are expected to be awarded by the Arizona Court of Appeals in fiscal 2014. Advances To Kiowa Commanche Lupine Oakwood Pines Pawnee Pinon Improvement Shoshone Tonowanda Flood Control Toho Tolani Total Advances From Advances from Forest Fees General Forest Fees Revolving Fund Fund Fund Total $ 26,974 $ - $ - $ 26,974 22,332 2,100 24,432 1,783 1,783 18,494 18,494 8,912 2,859 11,771 4,808 4,808 8,433 8,433 1,000,000 1,000,000 435,320 50,000 485,320 $ 89,953 $1,442,062 $ 50,000 $1,582,015 66 Coconino County Notes to Financial Statements June 30, 2013 Note 10– 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 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. Substantially all deposits and investments of the County’s primary government are included in the County Treasurer’s investment pool, except for $1,084,998 of deposits, $474,979 of investments in mutual funds-debt, $10,437,703 in the State Treasurer’s Investment Pool, and $127,579 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 2 for the disclosure of the County’s deposit and investment risks. Details of each major investment classification follow. Investment Type U.S. agency securities Municipal bonds Corporate securities Principal 126,758,866 7,197,755 35,640,323 Rates 0.000-3.050% 0.000-5.020% 0.744-5.000% 67 Maturities 9/15/2013-6/27/2018 $ 7/12/2013-12/1/2017 7/15/2013-5/3/2018 Amount 124,600,979 7,144,303 34,991,826 Coconino County Notes to Financial Statements June 30, 2013 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 $ $ 192,871,492 192,871,492 $ 88,148,155 104,723,337 192,871,492 $ Statement of Changes in Net Position Total additions $ Total deletions Net increase Net position held in trust July 1, 2012 June 30, 2013 $ 631,925,114 613,692,381 18,232,733 174,638,759 192,871,492 Note 11 – Maintenance of Efforts 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 2013 was $2,457,240. In accordance with A.R.S. Section 48-5802 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 2013 was $4,583,892. 68 Coconino County Notes to Financial Statements June 30, 2013 Note 12 – Loss Contingency Loss contingencies that are assessed to be at least reasonably possible are disclosed in this note. Loss contingencies involve situations where there is an uncertainty of a possible loss. The reporting of loss contingencies depends on the likelihood that a future event or events will confirm the loss or impairment of an asset or the incurrence of a liability. Terms used to assess the range for the likelihood of loss are probable, reasonably possible, and remote. Loss contingencies that are assessed as probable and measurable are accrued in the financial statements. Loss contingencies that are assessed as remote are not reported in the financial statements, nor disclosed in the notes. All other material loss contingencies are disclosed in this note. There is an administrative claim and legal action pending where an adverse decision is considered by management and legal counsel as “probable” but where an estimated potential loss cannot be determined. The Department of Justice (DOJ) has audited the Southwest Border Prosecution Initiative (SWBPI) grant reimbursements made to Coconino County. The claim is based on the interpretation as to which cases are considered federally-initiated cases. As of June 30, 2013, and to date, the claimed SWBPI grant reimbursement is a contingent charge against Coconino County and the likelihood of the federal government’s success on the merits is “probable”. It should be noted that SWBPI audits of other jurisdictions have a varied settlement history and the DOJ has verbally suggested to Coconino County that a settlement offer from Coconino County, though not made, would be considered. Therefore, although the federal government’s success on the merits is “probable”, an accurate estimate of the final amount is difficult to determine. 69 REQUIRED SUPPLEMENTARY INFORMATION Coconino County Required Supplementary Information Schedule of Agent Retirement Plan’s and Coconino County Postemployment Healthcare Plan’s Funding Progress June 30, 2013 Actuarial Valuation Date Plan Actuarial Value of Plan Assets (a) Actuarial Accrued Liability (b) Funding (Liability) Excess (a-b) 32,979,729 32,936,516 29,578,824 (21,896,138) (21,341,017) (17,444,728) 830,335 863,222 822,910 (830,335) (863,222) (822,910) Funded Ratio (a/b) Annual Covered Payroll (c) Unfunded Liability as Percentage of Covered Payroll ([a-b]/c) 33.6% 35.2% 41.0% $ 2,805,923 2,598,786 2,430,243 780.4% 821.2% 717.8% 2,805,923 2,598,786 2,430,243 29.59% 33.22% 33.86% 49,547,980 48,579,979 51,641,941 17.10% 20.40% 15.27% Public Safety Personnel Retirement System Pension 6/30/2013 6/30/2012 6/30/2011 Health Insurance 6/30/2013 6/30/2012 6/30/2011 11,083,591 11,595,499 12,134,096 Coconino County Postemployment Healthcare Plan Insurance 7/1/2013 7/1/2011 7/1/2009 - 8,472,061 9,911,098 7,887,569 (8,472,061) (9,911,098) (7,887,569) 0.0% 0.0% 0.0% Note 1: Actuarial Information Available New actuarial measurements are required by GASB Statement 45 to be made biennially for the Coconino County Postemployment Healthcare Plan. 70 Coconino County Required Supplementary Information Budgetary Comparison Schedule General Fund Year Ended June 30, 2013 Budgeted Amounts Original Revenues: Property taxes Other 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 $ 8,585,781 11,916,000 892,500 1,110,850 22,858,098 1,354,463 263,851 130,150 104,810 47,216,503 1,687,817 1,082,060 1,095,567 1,463,868 318,913 2,848,895 1,144,247 3,725,545 1,548,318 1,236,570 156,426 1,328,835 2,540,355 794,051 22,061,460 328,538 2,187,722 1,756,360 2,845,976 606,196 325,609 51,083,328 $ Final Actual Amounts 8,585,781 11,916,000 892,500 1,110,850 22,901,302 1,354,463 263,851 130,150 104,810 47,259,707 $ 1,721,706 1,090,055 1,095,567 1,477,868 344,545 2,848,895 1,144,247 3,840,321 1,548,975 1,236,570 156,426 1,379,236 2,540,232 794,051 22,067,238 328,538 2,187,722 1,756,360 2,845,976 606,196 325,609 51,336,333 The notes to the budgetary comparison schedules are an integral part of this schedule. 71 8,768,956 11,830,598 674,468 1,125,686 24,607,064 1,749,253 (132,118) 249,799 204,636 49,078,342 1,668,161 1,133,350 1,089,377 1,287,778 144,284 2,862,278 1,042,687 2,792,551 1,452,912 1,130,696 160,841 1,197,407 2,258,127 820,590 1,099,776 345,954 2,120,670 1,768,916 2,921,523 582,015 318,867 28,198,760 Variance with Final Budget $ 183,175 (85,402) (218,032) 14,836 1,705,762 394,790 (395,969) 119,649 99,826 1,818,635 53,545 (43,295) 6,190 190,090 200,261 (13,383) 101,560 1,047,770 96,063 105,874 (4,415) 181,829 282,105 (26,539) 20,967,462 (17,416) 67,052 (12,556) (75,547) 24,181 6,742 23,137,573 Coconino County Required Supplementary Information Budgetary Comparison Schedule General Fund Year Ended June 30, 2013 Budgeted Amounts Original Public safety Adult Probation Constable Juvenile Probation Sheriff Total public safety Final Variance with Final Budget Actual Amounts 1,432,642 87,145 2,579,298 7,975,741 12,074,826 1,432,642 87,145 2,579,298 8,084,651 12,183,736 1,424,208 96,440 2,555,109 8,451,038 12,526,795 592,688 592,688 457,151 135,537 Welfare Community Services 1,020,074 1,020,074 895,900 124,174 Culture and recreation Parks and Recreation 1,421,703 1,421,703 1,479,891 Education School Superintendent Total expenditures 465,680 66,658,299 465,680 67,020,214 462,350 44,020,847 3,330 22,999,367 (19,441,796) (19,760,507) 5,057,495 24,818,002 3,807,063 (9,369,041) (5,561,978) 3,890,350 (9,792,864) (5,902,514) 4,625 3,860,918 (8,157,137) (4,291,594) (25,003,774) (25,663,021) Highways and streets Information Technology 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 change in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 25,659,329 655,555 $ 25,659,329 (3,692) The notes to the budgetary comparison schedules are an integral part of this schedule. 72 8,434 (9,295) 24,189 (366,387) (343,059) (58,188) 4,625 (29,432) 1,635,727 1,610,920 765,901 $ 29,960,389 30,726,290 26,428,922 $ 4,301,060 30,729,982 Coconino County Required Supplementary Information Budgetary Comparison Schedule Public Works/HURF Fund Year Ended June 30, 2013 Budgeted Amounts Original Final Revenues: Licenses and permits Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues 8,500 11,468,060 15,025 180,000 8,500 11,468,060 15,025 180,000 11,671,585 Expenditures: Highways and streets Public Works Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 Actual Amounts Variance with Final Budget 11,671,585 12,885 10,394,996 12,145 (68,707) 18,764 10,370,083 4,385 (1,073,064) (2,880) (248,707) 18,764 (1,301,502) 21,705,450 21,705,450 21,705,450 21,705,450 12,787,343 12,787,343 8,918,107 8,918,107 (10,033,865) (10,033,865) (2,417,260) 7,616,605 3,020,000 (949,773) 2,070,227 3,020,000 (949,773) 2,070,227 11,992 1,605,077 (943,066) 674,003 11,992 (1,414,923) 6,707 (1,396,224) (7,963,638) (7,963,638) (1,743,257) 6,220,381 20,105,029 $ 12,141,391 20,105,029 $ 12,141,391 20,241,628 $ 18,498,371 The notes to the budgetary comparison schedules are an integral part of this schedule. 73 $ 136,599 6,356,980 Coconino County Required Supplementary Information Budgetary Comparison Schedule Jail District Fund Year Ended June 30, 2013 Budgeted Amounts Original Final Actual Amounts $ 11,862,999 20,000 1,883,983 193,057 13,960,039 $ 11,862,999 20,000 1,883,983 193,057 13,960,039 $ 11,699,874 6,936 1,425,757 (57,986) 2,894 13,077,475 13,826,157 13,898,793 12,078,544 1,820,249 13,826,157 13,898,793 1,500 12,080,044 (1,500) 1,818,749 Excess (deficiency) of revenues over expenditures 133,882 61,246 997,431 936,185 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 2,455,695 (881,695) 1,574,000 2,455,695 (911,129) 1,544,566 2,457,240 (876,413) 1,580,827 1,545 34,716 36,261 Net changes in fund balances 1,707,882 1,605,812 2,578,258 972,446 Fund balance, July 1, 2012 Fund balance, June 30, 2013 11,131,578 $ 12,839,460 11,131,578 $ 12,737,390 10,899,156 $ 13,477,414 Revenues: Other taxes Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues Expenditures: Public safety Sheriff Debt service: Interest and other charges Total expenditures The notes to the budgetary comparison schedules are an integral part of this schedule. 74 Variance with Final Budget $ $ (163,125) (13,064) (458,226) (251,043) 2,894 (882,564) (232,422) 740,024 Coconino County Required Supplementary Information Budgetary Comparison Schedule Public Health Services District Fund Year Ended June 30, 2013 Budgeted Amounts Original Revenues: Property taxes Other taxes Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ 4,399,025 Final $ 4,399,025 Variance with Final Budget Actual Amounts $ 4,407,951 2,093 729,585 26 3,782,116 552,135 (7,867) 131,096 4,785 9,601,920 $ 8,926 2,093 41,639 26 (512,269) 33,435 (31,347) 87,281 3,815 (366,401) 687,946 687,946 3,763,127 518,700 24,046 31,264 1,516 9,425,624 4,294,385 518,700 23,480 43,815 970 9,968,321 Expenditures: Public safety Medical Examiner 571,918 571,918 740,074 Health Health Department 11,726,074 12,854,526 12,036,240 818,286 161,417 161,417 151,225 10,192 12,459,409 13,587,861 12,927,539 660,322 (3,033,785) (3,619,540) (3,325,619) 293,921 4,038,348 (1,411,755) 2,626,593 4,621,175 (1,411,755) 3,209,420 4,583,892 (1,397,255) 3,186,637 (37,283) 14,500 (22,783) (407,192) (410,120) (138,982) Welfare Community Services Education 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, 2012 Fund balance, June 30, 2013 $ 2,056,377 1,649,185 $ 2,056,377 1,646,257 $ 2,079,956 1,940,974 The notes to the budgetary comparison schedules are an integral part of this schedule. 75 (168,156) 271,138 $ 23,579 294,717 Coconino County Required Supplementary Information Budgetary Comparison Schedule Flood Control District Fund Year Ended June 30, 2013 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final $ 2,977,549 8,000 12,355,617 1,950 40,000 10,914 15,394,030 $ 2,977,549 8,000 12,575,617 1,950 40,000 10,914 15,614,030 $ 2,966,931 11,500 4,696,442 (18,067) 10,997 7,667,803 (10,618) 3,500 (7,879,175) (1,950) (58,067) 83 (7,946,227) 17,092,151 17,092,151 17,312,151 17,312,151 7,730,708 7,730,708 9,581,443 9,581,443 Excess (deficiency) of revenues over expenditures (1,698,121) (1,698,121) (62,905) 1,635,216 Other financing sources (uses): Transfers out Total other financing sources (uses) (1,471,255) (1,471,255) (1,471,255) (1,471,255) (76,255) (76,255) 1,395,000 1,395,000 Net changes in fund balances (3,169,376) (3,169,376) (139,160) 3,030,216 Revenues: Property taxes Licenses and permits Intergovernmental Charges for services Investment earnings Contributions Total revenues Expenditures: Public Safety Flood Control Total expenditures Fund balance, July 1, 2012 Fund balance, June 30, 2013 3,176,277 $ 6,901 3,176,277 $ 6,901 1,915,963 $ 1,776,803 The notes to the budgetary comparison schedules are an integral part of this schedule. 76 $ (1,260,314) $ 1,769,902 Coconino County Required Supplementary Information Notes to Budgetary Comparison Schedules June 30, 2013 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, 2013, expenditures exceeded final budget amounts at the department level (the legal level of budgetary control) as follows: Fund/Department General Fund Sheriff Superior Courts Parks and Recreation Board of Supervisors Legal Defender Page Justice Court County Attorney Recorder Constable Fredonia Justice Court Public Health Services District Fund Medical Examiner Excess $ 366,387 75,547 58,188 43,295 26,539 17,416 13,383 12,556 9,295 4,415 168,156 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. 77 THIS PAGE INTENTIONALLY LEFT BLANK 78 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2013 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. 79 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2013 (Continued) 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. 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. 80 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2013 (Continued) 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. 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. 81 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 Special Revenue 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 Deferred revenue Total liabilities $ $ $ 720,202 - 1,078 1,347 32,905 755,532 15,769 48,706 - Assessor Storage and Retrieval $ 27,555 - Clerk of the Superior Court Grants and Fees Career Center Grants $ - - $ 445,126 - 1 - 97 4 - 771 - $ 27,556 $ 1,450 329,453 3,993 334,997 5,991 738 452,626 $ - $ - 83,141 13,642 - - $ $ 375 2,170 - 229,750 8,085 22,286 94,846 - 600 327,133 2,545 - - 3,993 738 660,686 27,556 3,871 449,343 660,686 755,532 27,556 27,556 7,864 334,997 Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 82 $ $ $ 450,081 452,626 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 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 Deferred revenue Total liabilities $ $ $ - Conciliation Court County Attorney Grants and Fees $ $ 95,545 - 688,877 418,056 24,429 County Improvement Districts-Special Revenue $ 1,220,352 - 331,139 242 - - - 163 - 1,514 - 117,087 2,000 - 627,369 509,271 393 1,468,414 1,850 97,558 151,271 55,588 300 1,340,035 22,393 1,361,832 71,863 53,725 - $ $ 3,088 654 - $ $ 722,711 5,091 14,408 - $ $ 56,410 8,473 - 106,416 6,648 15,424 863,723 3,742 125,915 22,820 94,351 393 - 300 - 604,298 93,816 1,213,820 1,267,481 604,691 1,468,414 93,816 97,558 1,214,120 1,340,035 Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 83 $ $ $ 1,267,481 1,361,832 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 Special Revenue County Library District 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 Deferred revenue Total liabilities $ Emergency Services Grants 251,556 - $ - 140,030 - 421 - - $ 392,007 $ $ - $ - Inmate Welfare $ Jail Enhancement 254,260 - $ 687,331 - - 20,679 284 - 1,186 - 140,222 29,625 169,847 58 275,281 $ 22,745 6,869 718,131 $ 33,783 1,031 3,147 - $ $ 15,813 2,396 - - - 114,232 531 240 92,681 106,260 198,941 118,410 18,740 34,023 - - - 6,869 193,066 51,437 256,541 677,239 193,066 392,007 51,437 169,847 256,541 275,281 Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 84 $ $ $ 684,108 718,131 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 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 Deferred revenue Total liabilities $ $ $ 734,832 - Juvenile Court Grants and Fees $ 853,817 - Legal Defender Grants and Fees $ 9,493 - National Forest Fees $ 4,420,893 - 1,207 1,212 - - - - 1,710 - 17 - 7,795 139,953 12,694 322 750,267 7,215 48,636 750 912,128 $ 5,253 397 15,160 $ 162,746 4,731,387 $ 2,735 $ 1 11,288 3,279 - $ $ 260,584 19,211 36,084 - - - 5,604 192,541 275,151 14,452 48,652 118,399 8,339 192,542 322 750 - - 474,794 792,979 6,821 4,538,845 475,116 750,267 793,729 912,128 6,821 15,160 Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 85 $ $ $ 4,538,845 4,731,387 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 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 Deferred revenue Total liabilities $ $ $ 474,348 - Public Defender Grants and Fees $ 86,484 - Recorder Storage and Retrieval $ 327,781 - School Superintendent Grants and Fees $ 2,962 793 - 11 151 - 594 - 3,230 2,623 - 125 478,228 $ 47,334 3,600 137,580 $ 1,431 329,806 $ 130 602,783 21,000 1,443,697 $ 9,178 $ 711 $ 7,766 2,905 - - 813,931 - - - 252,789 6,174 - 7,231 47,281 6,700 24,602 56,459 711 4,720 263,683 125 - 1,431 21,000 453,501 81,121 327,664 1,159,014 453,626 478,228 81,121 137,580 329,095 329,806 Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 86 $ $ $ 1,180,014 1,443,697 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 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 Deferred revenue Total liabilities $ $ $ 249,605 - Superior Court Grants and Fees Solid Waste $ - 300 426 - 120 - 54,486 94,151 398,968 10,198 12,278 - $ $ $ 394,098 - Taxpayer Information Fund $ 80,699 - - 1,056 806 - 137 - 337,179 85,487 422,786 304,852 7,376 322 708,510 $ 80,836 $ 4,637 83,057 10,072 - $ $ 28,586 8,290 - - - 3,453 329,642 29,613 25,929 422,771 66,489 4,637 - - 322 - Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 373,039 15 641,699 76,199 373,039 398,968 15 422,786 642,021 708,510 76,199 80,836 87 $ $ $ Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 Special Revenue Debt Service County Improvement Districts-Debt Service 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 Deferred revenue Total liabilities $ $ $ - $ 552,292 - - - - 508,070 1,706 - 97,487 97,487 $ 1,100 1,063,168 $ 3 568 1,971 - 96,695 94,937 97,476 499,982 596,680 - - 11 466,488 Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 11 97,487 88 $ 466,488 1,063,168 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2013 Accommodation School 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 Deferred revenue Total liabilities $ 53,234 - Capital Projects County Improvement Districts-Capital Projects $ 602,949 72,889 - Total Nonmajor Governmental Funds Other Capital Projects Funds $ 49,263 71,762 - $ 14,094,523 562,707 24,429 - - - 93 - 1,337 - 33 - 140,030 478,966 508,070 27,366 139,953 $ 4,250 57,577 $ 677,175 $ 1,758 122,816 $ 2,001,199 1,807,906 36,243 19,821,392 $ - $ 3 $ 4,995 $ - 485,320 - 722,090 228,374 582,015 - 485,323 4,995 2,173,951 168,339 38,244 613,542 4,526,555 - - - 36,243 Fund balances: Nonspendable Restricted Total fund balances Total liabilities and fund balances $ 57,577 191,852 117,821 15,258,594 57,577 57,577 191,852 677,175 117,821 122,816 15,294,837 19,821,392 89 $ $ $ Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Special Revenue Revenues: Property taxes Other taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Adult Probation Grants and Fees Assessor Storage and Retrieval $ $ 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 2,008,260 569,257 (3,518) 2,573,999 - Clerk of the Superior Court Grants and Fees Career Center Grants $ - 1,062,710 900 (59) 1,063,551 $ 62,700 55,380 (1,850) 116,230 2,717,447 - 22,159 - 125,663 - 1,084,160 - - 2,717,447 22,159 1,084,160 125,663 Excess (deficiency) of revenues over expenditures (143,448) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 25,809 (429) - 25,380 Net changes in fund balances Fund balances, July 1, 2012 Fund balances, June 30, 2013 (22,159) (118,068) $ 778,754 660,686 90 (22,159) $ 49,715 27,556 $ (20,609) (9,433) 1,450 5,991 1,450 5,991 (19,159) (3,442) 27,023 7,864 $ 453,523 450,081 Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Special Revenue Community Services Grants and Fees Revenues: Property taxes Other 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 2,148,601 1,402,435 (498) 147,423 3,697,961 Conciliation Court County Attorney Grants and Fees County Improvement Districts-Special Revenue $ $ $ 8,174 44,733 (362) 52,545 226,639 449,469 47,629 (6,175) 86,971 804,533 15,600 1,199,492 (4,780) 34,985 1,245,297 20,208 79,921 1,372,149 - 4,333,347 - - - 7,271 1,030,034 - 4,353,555 79,921 1,372,149 1,037,305 Excess (deficiency) of revenues over expenditures (655,594) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 594,370 (99,517) - 494,853 (160,741) Net changes in fund balances Fund balances, July 1, 2012 Fund balances, June 30, 2013 (27,376) $ 765,432 604,691 91 (27,376) $ 121,192 93,816 $ (567,616) 207,992 3,150 101,010 (190,561) (55,447) (86,401) (55,447) (654,017) 152,545 1,868,137 1,214,120 $ 1,114,936 1,267,481 Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Special Revenue County Library District Revenues: Property taxes Other 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 Emergency Services Grants 4,175,760 - $ 76,103 Inmate Welfare $ Jail Enhancement - $ 234,524 3,246 79,534 4,258,540 2 76,105 92,147 (532) 182,357 273,972 (2,994) 231,530 4,170,337 - 221,966 - 216,507 - 170,316 - 4,170,337 221,966 216,507 170,316 (145,861) 57,465 61,214 - 427 Excess (deficiency) of revenues over expenditures 88,203 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) (89,153) Net changes in fund balances (950) Fund balances, July 1, 2012 Fund balances, June 30, 2013 - 144,531 (89,153) $ 194,016 193,066 92 144,531 427 (1,330) $ 52,767 51,437 57,465 $ 199,076 256,541 61,641 $ 622,467 684,108 Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Special Revenue Revenues: Property taxes Other taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Justice Courts Grants and Fees Juvenile Court Grants and Fees Legal Defender Grants and Fees $ $ $ 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 19,225 32,866 425,777 (3,296) 474,572 268,144 2,128,950 106,869 (4,612) 798 2,232,005 1,791 National Forest Fees $ (21) 1,770 3,203,648 (7,896) 3,195,752 3,432 - - 2,255,921 - - 1,383,175 - 268,144 2,255,921 3,432 1,383,175 (23,916) (1,662) 1,812,577 5,294 5,253 (5,604) (1,929,543) (351) (1,929,543) (2,013) (116,966) Excess (deficiency) of revenues over expenditures 206,428 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) (261,709) Net changes in fund balances Fund balances, July 1, 2012 Fund balances, June 30, 2013 $ (261,709) 5,294 (55,281) (18,622) 530,397 475,116 93 $ 812,351 793,729 $ 8,834 6,821 $ 4,655,811 4,538,845 Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Special Revenue Revenues: Property taxes Other taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Parks and Recreation Grants and Fees Public Defender Grants and Fees Recorder Storage and Retrieval School Superintendent Grants and Fees $ $ $ $ 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 141,462 438,351 (2,118) 13,596 591,291 16,239 (352) 15,887 115,583 141,142 (1,433) 255,292 33 4,149,655 112,898 (8,354) 49,611 58,400 4,362,243 - 28,686 78,688 - 472,575 - - - 3,938,119 - 472,575 28,686 78,688 3,938,119 118,716 (12,799) 176,604 424,124 17,016 (123,166) 47,281 (47,281) - - Excess (deficiency) of revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) (106,150) (49,344) 12,566 Net changes in fund balances Fund balances, July 1, 2012 Fund balances, June 30, 2013 (49,344) $ 441,060 453,626 94 (12,799) $ 93,920 81,121 127,260 $ 201,835 329,095 424,124 $ 755,890 1,180,014 Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Special Revenue Sheriff Grants and Fees Revenues: Property taxes Other 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 508,058 66,543 (1,304) 3,260 576,557 Solid Waste $ 388,075 116,284 301 504,660 Superior Court Grants and Fees Taxpayer Information Fund $ $ 172,647 170,696 (1,673) 3,000 1,486 346,156 18,591 (438) 18,153 715,012 - - 791,279 7,522 790,448 - - - 715,012 790,448 791,279 7,522 (138,455) (285,788) (445,123) 10,631 - Excess (deficiency) of revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 196,858 334,844 (54,659) 368,214 (5,991) 196,858 280,185 362,223 Net changes in fund balances 58,403 Fund balances, July 1, 2012 Fund balances, June 30, 2013 $ 314,636 373,039 95 (5,603) $ 5,618 15 (82,900) $ 724,921 642,021 10,631 $ 65,568 76,199 Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Special Revenue Debt Service County Improvement Districts-Debt Service Other Special Revenue Funds Revenues: Property taxes Other taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ - $ 613 438,623 - 16,288 (6,976) 432,260 16,288 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 53,022 - 60,750 - - 113,772 396,669 68,223 464,892 (97,484) (32,632) Excess (deficiency) of revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) 97,487 97,487 3 Net changes in fund balances Fund balances, July 1, 2012 Fund balances, June 30, 2013 - $ 8 11 96 (32,632) $ 499,120 466,488 Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balalnces Nonmajor Governmental Funds June 30, 2013 Revenues: Property taxes Other taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Accommodation School Capital Projects County Improvement Districts-Capital Projects $ $ 53,729 (124) 53,605 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 - Total Nonmajor Governmental Funds Other Capital Projects Funds $ (3,872) (3,872) - $ 34,255 34,255 4,176,406 454,223 308,564 16,900,544 5,025,412 (25,433) 282,828 378,593 27,501,137 - - - 62,000 - 7,366 2,850,873 6,297,169 68,021 1,820,482 5,417,507 4,642,912 5,321,294 69,366 62,000 - 7,366 396,669 68,223 26,952,516 26,889 548,621 Excess (deficiency) of revenues over expenditures (8,395) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources and (uses) - - (8,395) Net changes in fund balances Fund balances, July 1, 2012 Fund balances, June 30, 2013 (3,872) $ 65,972 57,577 97 (3,872) $ 195,724 191,852 $ 1,758 3,577 1,947,166 (2,912,404) 1,758 (961,661) 28,647 (413,040) 89,174 117,821 $ 15,707,877 15,294,837 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Adult Probation Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: Public safety Adult Probation Total expenditures 1,848,677 614,700 18,100 2,481,477 Final $ 2,899,468 2,899,468 2,030,546 614,700 18,100 2,663,346 Actual Amounts $ 2,944,467 2,944,467 2,008,260 569,257 (3,518) 2,573,999 Final BudgetPositive (Negative) $ 2,717,447 2,717,447 (22,286) (45,443) (21,618) (89,347) 227,020 227,020 Excess (deficiency) of revenues over expenditures (417,991) (281,121) (143,448) 137,673 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 158,603 (600) 158,003 23,718 (600) 23,118 25,809 (429) 25,380 2,091 171 2,262 (259,988) (258,003) (118,068) 139,935 Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 634,127 374,139 98 $ 634,127 376,124 $ 778,754 660,686 $ 144,627 284,562 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Assessor Storage and Retrieval Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Total revenues $ Expenditures: General government Assessor Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ Final - $ Actual Amounts - $ - Final BudgetPositive (Negative) $ - 31,933 31,933 49,715 49,715 22,159 22,159 27,556 27,556 (31,933) (49,715) (22,159) 27,556 (31,933) (49,715) (22,159) 27,556 31,933 - 99 $ 31,933 (17,782) $ 49,715 27,556 $ 17,782 45,338 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Career Center Grants Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: Welfare Career Center Total expenditures Final 1,515,015 1,515,015 $ Final BudgetPositive (Negative) Actual Amounts 1,623,555 450 1,624,005 $ 1,062,710 900 (59) 1,063,551 $ 1,515,013 1,515,013 1,624,005 1,624,005 Excess (deficiency) of revenues over expenditures 2 - (20,609) (20,609) Other financing sources (uses): Transfers in Total other financing sources (uses) - - 1,450 1,450 1,450 1,450 Net changes in fund balances 2 - (19,159) (19,159) Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 27,105 27,107 100 $ 27,105 27,105 1,084,160 1,084,160 (560,845) 450 (59) (560,454) $ 27,023 7,864 539,845 539,845 $ (82) (19,241) 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, 2013 Variance with 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 165,000 49,800 5,050 219,850 Final $ 165,000 49,800 5,050 219,850 Final BudgetPositive (Negative) Actual Amounts $ 62,700 55,380 (1,850) 116,230 $ 176,701 176,701 176,701 176,701 Excess (deficiency) of revenues over expenditures 43,149 43,149 (9,433) (52,582) Other financing sources (uses): Transfers in Total other financing sources (uses) 10,000 10,000 10,000 10,000 5,991 5,991 (4,009) (4,009) Net changes in fund balances 53,149 53,149 (3,442) (56,591) Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 404,455 457,604 101 $ 404,455 457,604 125,663 125,663 (102,300) 5,580 (6,900) (103,620) $ 453,523 450,081 51,038 51,038 $ 49,068 (7,523) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Services Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: General government Facilities Welfare Community Services Total expenditures 3,900,392 1,875,088 2,000 145,334 1,800 5,924,614 Final $ 3,217,559 1,875,088 2,000 131,971 1,800 5,228,418 Actual Amounts $ 2,148,601 1,402,435 (498) 147,423 3,697,961 Final BudgetPositive (Negative) $ (1,068,958) (472,653) (2,498) 15,452 (1,800) (1,530,457) 10,000 30,480 20,208 10,272 6,745,420 6,755,420 5,853,694 5,884,174 4,333,347 4,353,555 1,520,347 1,530,619 Excess (deficiency) of revenues over expenditures (830,806) (655,756) (655,594) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 572,549 (83,708) 488,841 637,888 (99,517) 538,371 594,370 (99,517) 494,853 (43,518) (43,518) (341,965) (117,385) (160,741) (43,356) Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 479,660 137,695 102 $ 479,660 362,275 $ 765,432 604,691 162 $ 285,772 242,416 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Conciliation Court Year Ended June 30, 2013 Variance with 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, 2012 Fund balance, June 30, 2013 $ 9,000 44,400 1,000 54,400 Final $ 9,000 44,400 1,000 54,400 Actual Amounts $ 8,174 44,733 (362) 52,545 Final BudgetPositive (Negative) $ (826) 333 (1,362) (1,855) 82,118 82,118 82,118 82,118 79,921 79,921 (27,718) (27,718) (27,376) 342 (27,718) (27,718) (27,376) 342 104,908 77,190 103 $ 104,908 77,190 $ 121,192 93,816 2,197 2,197 $ 16,284 16,626 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Attorney Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: General government County Attorney Total expenditures 600,000 561,144 37,500 46,700 1,245,344 Final $ 2,094,027 2,094,027 600,000 561,644 37,500 46,700 1,245,844 Actual Amounts $ 2,134,609 2,134,609 226,639 449,469 47,629 (6,175) 86,971 804,533 Final BudgetPositive (Negative) $ 1,372,149 1,372,149 (373,361) (112,175) 10,129 (52,875) 86,971 (441,311) 762,460 762,460 Excess (deficiency) of revenues over expenditures (848,683) (888,765) (567,616) 321,149 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 236,799 (193,831) 42,968 236,799 (253,154) (16,355) 3,150 101,010 (190,561) (86,401) 3,150 (135,789) 62,593 (70,046) Net changes in fund balances (805,715) (905,120) (654,017) 251,103 Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 1,692,735 887,020 104 $ 1,692,735 787,615 $ 1,868,137 1,214,120 $ 175,402 426,505 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Special Revenue Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Special assessments Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Highways and streets Improvement Districts Sanitation KVID Total expenditures 15,600 1,170,000 10,050 20,000 1,215,650 Final $ 15,600 1,170,000 10,050 20,000 1,215,650 Actual Amounts $ 15,600 1,199,492 (4,780) 34,985 1,245,297 7,271 9,533 1,799,197 1,816,001 1,601,006 1,617,810 1,030,034 1,037,305 570,972 580,505 610,152 (402,160) 207,992 Other financing sources (uses): Transfers out Total other financing sources (uses) (55,447) (55,447) (55,447) (55,447) (55,447) (55,447) (655,798) (457,607) 152,545 $ 29,492 (14,830) 14,985 29,647 16,804 (600,351) Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 16,804 Excess (deficiency) of revenues over expenditures Net changes in fund balances Final BudgetPositive (Negative) 1,078,806 423,008 105 $ 1,078,806 621,199 $ 1,114,936 1,267,481 610,152 $ 36,130 646,282 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Library District Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Property taxes Investment earnings Contributions Total revenues $ Expenditures: Culture and recreation Library District Total expenditures 4,164,997 10,000 78,935 4,253,932 Final $ 4,427,083 4,427,083 4,164,997 10,000 78,935 4,253,932 Actual Amounts $ 4,427,083 4,427,083 4,175,760 3,246 79,534 4,258,540 Final BudgetPositive (Negative) $ 10,763 (6,754) 599 4,608 4,170,337 4,170,337 256,746 256,746 261,354 Excess (deficiency) of revenues over expenditures (173,151) (173,151) 88,203 Other financing sources (uses): Transfers out Total other financing sources (uses) (89,153) (89,153) (89,153) (89,153) (89,153) (89,153) - (262,304) (262,304) (950) 261,354 Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 262,304 - 106 $ 262,304 - $ 194,016 193,066 $ (68,288) 193,066 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Emergency Services Grants Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Public safety County Manager Public Works Total expenditures 2,391,930 2,391,930 Final $ 651,184 1,896,271 2,547,455 84,659 84,659 Actual Amounts $ 76,103 2 76,105 Final BudgetPositive (Negative) $ (8,556) 2 (8,554) 278,296 278,296 221,966 221,966 56,330 56,330 Excess (deficiency) of revenues over expenditures (155,525) (193,637) (145,861) 47,776 Other financing sources (uses): Transfers in Total other financing sources (uses) 131,582 131,582 169,706 169,706 144,531 144,531 (25,175) (25,175) Net changes in fund balances (23,943) (23,931) Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 53,593 29,650 107 $ 53,593 29,662 (1,330) $ 52,767 51,437 22,601 $ (826) 21,775 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Inmate Welfare Year Ended June 30, 2013 Variance with 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, 2012 Fund balance, June 30, 2013 $ 70,000 8,000 160,250 238,250 Final $ 70,000 8,000 160,250 238,250 Actual Amounts $ 92,147 (532) 182,357 273,972 Final BudgetPositive (Negative) $ 22,147 (8,532) 22,107 35,722 297,480 297,480 324,480 324,480 216,507 216,507 107,973 107,973 (59,230) (86,230) 57,465 143,695 (59,230) (86,230) 57,465 143,695 159,538 100,308 108 $ 159,538 73,308 $ 199,076 256,541 $ 39,538 183,233 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Jail Enhancement Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Public safety Sheriff Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Sale of capital assets Total other financing sources (uses) 213,518 5,374 218,892 $ 213,518 5,374 218,892 $ 234,524 (2,994) 231,530 $ 21,006 (8,368) 12,638 501,100 501,100 170,316 170,316 330,784 330,784 (335,208) (282,208) 61,214 343,422 427 427 427 427 61,641 343,849 - (335,208) $ Actual Amounts 554,100 554,100 - Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 Final Final BudgetPositive (Negative) 606,600 271,392 109 (282,208) $ 606,600 324,392 $ 622,467 684,108 $ 15,867 359,716 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Justice Courts Grants and Fees Year Ended June 30, 2013 Variance with 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 9,000 404,725 14,500 428,225 Final $ 9,000 51,878 404,725 14,500 480,103 Actual Amounts $ 19,225 32,866 425,777 (3,296) 474,572 Final BudgetPositive (Negative) $ 10,225 (19,012) 21,052 (17,796) (5,531) 220,837 37,350 28,605 67,518 354,310 272,715 37,350 28,605 67,518 406,188 205,679 8,900 13,746 39,819 268,144 67,036 28,450 14,859 27,699 138,044 Excess (deficiency) of revenues over expenditures 73,915 73,915 206,428 132,513 Other financing sources (uses): Transfers out Total other financing sources (uses) (248,073) (248,073) (248,073) (248,073) (261,709) (261,709) (13,636) (13,636) Net changes in fund balances (174,158) (174,158) (55,281) 118,877 Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 522,642 348,484 110 $ 522,642 348,484 $ 530,397 475,116 $ 7,755 126,632 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Juvenile Court Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Public safety Juvenile Probation Total expenditures 2,196,369 58,950 4,000 2,259,319 Final $ 2,994,413 2,994,413 2,242,547 58,950 4,000 2,305,497 Actual Amounts $ 2,971,434 2,971,434 2,128,950 106,869 (4,612) 798 2,232,005 Final BudgetPositive (Negative) $ 2,255,921 2,255,921 (113,597) 47,919 (8,612) 798 (73,492) 715,513 715,513 Excess (deficiency) of revenues over expenditures (735,094) (665,937) (23,916) 642,021 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 148,813 (82,636) 66,177 66,959 (13,725) 53,234 5,294 5,294 (61,665) 13,725 (47,940) (668,917) (612,703) (18,622) 594,081 Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 868,381 199,464 111 $ 868,381 255,678 $ 812,351 793,729 $ (56,030) 538,051 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Legal Defender Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: General government Legal Defender Total expenditures 2,000 230 2,230 $ 2,455 2,455 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, 2012 Fund balance, June 30, 2013 Final $ Final BudgetPositive (Negative) Actual Amounts 2,000 230 2,230 $ 2,455 2,455 1,791 (21) 1,770 $ 3,432 3,432 (209) (251) (460) (977) (977) (225) (225) (1,662) (1,437) 5,000 (5,105) (105) 5,000 (5,105) (105) 5,253 (5,604) (351) 253 (499) (246) (330) (330) (2,013) (1,683) 9,063 8,733 112 $ 9,063 8,733 $ 8,834 6,821 $ (229) (1,912) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual National Forest Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Education School Superintendent Total expenditures Excess (deficiency) of revenues over expenditures Final 50,902 50,902 $ Actual Amounts 267,353 50,902 318,255 $ 3,203,648 (7,896) 3,195,752 Final BudgetPositive (Negative) $ 2,936,295 (58,798) 2,877,497 - - 1,383,175 1,383,175 (1,383,175) (1,383,175) 50,902 318,255 1,812,577 1,494,322 Other financing sources (uses): Transfers out Total other financing sources (uses) (1,754,815) (1,754,815) (1,997,164) (1,997,164) (1,929,543) (1,929,543) 67,621 67,621 Net changes in fund balances (1,703,913) (1,678,909) (116,966) 1,561,943 Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 4,708,760 3,004,847 113 $ 4,708,760 3,029,851 $ 4,655,811 4,538,845 $ (52,949) 1,508,994 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parks and Recreation Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Culture and recreation Parks and Recreation Total expenditures 145,000 390,300 535,300 Final $ 143,623 390,300 533,923 Actual Amounts $ 141,462 438,351 (2,118) 13,596 591,291 Final BudgetPositive (Negative) $ (2,161) 48,051 (2,118) 13,596 57,368 572,165 572,165 555,246 555,246 472,575 472,575 82,671 82,671 Excess (deficiency) of revenues over expenditures (36,865) (21,323) 118,716 140,039 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) (106,150) (106,150) 17,016 (123,166) (106,150) 17,016 (123,166) (106,150) Net changes in fund balances (143,015) (127,473) 12,566 Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 399,962 256,947 114 $ 399,962 272,489 $ 441,060 453,626 140,039 $ 41,098 181,137 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Defender Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: General government Public Defender Total expenditures 20,000 1,700 21,700 Final $ 20,000 1,700 21,700 Actual Amounts $ 16,239 (352) 15,887 Final BudgetPositive (Negative) $ (3,761) (2,052) (5,813) 30,000 30,000 30,000 30,000 28,686 28,686 1,314 1,314 Excess (deficiency) of revenues over expenditures (8,300) (8,300) (12,799) (4,499) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 34,000 (34,000) - 34,000 (34,000) - 47,281 (47,281) - 13,281 (13,281) - (8,300) (8,300) (12,799) (4,499) Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 73,718 65,418 115 $ 73,718 65,418 $ 93,920 81,121 $ 20,202 15,703 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Recorder Storage and Retrieval Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: General government Recorder Total expenditures 130,000 2,400 132,400 Final $ 19,695 130,000 2,400 152,095 Actual Amounts $ 115,583 141,142 (1,433) 255,292 Final BudgetPositive (Negative) $ 95,888 11,142 (3,833) 103,197 110,196 110,196 131,676 131,676 78,688 78,688 52,988 52,988 Excess (deficiency) of revenues over expenditures 22,204 20,419 176,604 156,185 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 (27,140) (28,925) 127,260 Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 197,450 170,310 116 $ 197,450 168,525 $ 201,835 329,095 156,185 $ 4,385 160,570 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual School Superintendent Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Property taxes Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: Education School Superintendent Total expenditures $ 3,045,754 3,045,754 Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 2,712,083 99,256 2,598 20,000 400 2,834,337 Final $ 4,045,294 99,256 2,598 40,147 126,696 4,313,991 Actual Amounts $ 4,525,408 4,525,408 33 4,149,655 112,898 (8,354) 49,611 58,400 4,362,243 Final BudgetPositive (Negative) $ 33 104,361 13,642 (10,952) 9,464 (68,296) 48,252 3,938,119 3,938,119 587,289 587,289 (211,417) (211,417) 424,124 635,541 (211,417) (211,417) 424,124 635,541 927,440 716,023 117 $ 927,440 716,023 $ 755,890 1,180,014 $ (171,550) 463,991 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Sheriff Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Total revenues $ Expenditures: Public safety Sheriff Total expenditures 1,297,557 41,439 1,704 5,000 1,345,700 Final $ 1,545,500 1,545,500 795,838 41,439 1,704 5,000 843,981 Actual Amounts $ 508,058 66,543 (1,304) 3,260 576,557 Final BudgetPositive (Negative) $ (287,780) 25,104 (3,008) (1,740) (267,424) 927,959 927,959 715,012 715,012 212,947 212,947 Excess (deficiency) of revenues over expenditures (199,800) (83,978) (138,455) (54,477) Other financing sources (uses): Transfers in Total other financing sources (uses) 97,888 97,888 189,577 189,577 196,858 196,858 7,281 7,281 (101,912) 105,599 58,403 (47,196) Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 302,574 200,662 118 $ 302,574 408,173 $ 314,636 373,039 $ 12,062 (35,134) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Solid Waste Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: Sanitation Public Works Total expenditures 1,394,787 131,470 1,526,257 Final $ 1,634,725 1,634,725 1,044,787 131,470 1,176,257 Final BudgetPositive (Negative) Actual Amounts $ 1,697,225 1,697,225 388,075 116,284 301 504,660 $ (656,712) (15,186) 301 (671,597) 790,448 790,448 906,777 906,777 Excess (deficiency) of revenues over expenditures (108,468) (520,968) (285,788) 235,180 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 513,127 (54,659) 458,468 570,027 (54,659) 515,368 334,844 (54,659) 280,185 (235,183) (235,183) Net changes in fund balances 350,000 (5,600) (5,603) (3) Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 350,000 119 $ (5,600) $ 5,618 15 $ 5,618 5,615 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Superior Court Grants and Fees Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: General government Superior Courts Total expenditures 189,096 161,500 4,040 13,000 1,000 368,636 Final $ 189,096 161,500 4,040 10,000 1,000 365,636 Actual Amounts $ 172,647 170,696 (1,673) 3,000 1,486 346,156 Final BudgetPositive (Negative) $ (16,449) 9,196 (5,713) (7,000) 486 (19,480) 902,430 902,430 903,986 903,986 791,279 791,279 112,707 112,707 Excess (deficiency) of revenues over expenditures (533,794) (538,350) (445,123) 93,227 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 311,431 (10,000) 301,431 311,431 (10,000) 301,431 368,214 (5,991) 362,223 56,783 4,009 60,792 (232,363) (236,919) (82,900) 154,019 Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 704,730 472,367 120 $ 704,730 467,811 $ 724,921 642,021 $ 20,191 174,210 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Taxpayer Information Fund Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Charges for services Investment earnings Total revenues $ Expenditures: General government Treasurer Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 20,500 2,500 23,000 Final $ 20,500 2,500 23,000 Actual Amounts $ 18,591 (438) 18,153 Final BudgetPositive (Negative) $ (1,909) (2,938) (4,847) 29,000 29,000 29,000 29,000 7,522 7,522 21,478 21,478 (6,000) (6,000) 10,631 16,631 (6,000) (6,000) 10,631 16,631 45,173 39,173 121 $ 45,173 39,173 $ 65,568 76,199 $ 20,395 37,026 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Special Revenue Funds Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Charges for services Total revenues $ Expenditures: General government Finance/Budget Highways and streets Public Works Total expenditures Final 20,200 20,200 $ Final BudgetPositive (Negative) Actual Amounts 20,200 20,200 $ 16,288 16,288 $ (3,912) (3,912) 53,900 53,900 53,022 54,628 108,528 54,628 108,528 60,750 113,772 (6,122) (5,244) Excess (deficiency) of revenues over expenditures (88,328) (88,328) (97,484) (9,156) Other financing sources (uses): Transfers in Total other financing sources (uses) 88,328 88,328 88,328 88,328 97,487 97,487 9,159 9,159 - - 3 3 Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ - 122 $ - $ 8 11 878 $ 8 11 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Debt Service Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Property taxes Special assessments Investment earnings Total revenues $ Expenditures: Debt service: Principal Interest and other charges Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 465,690 3,875 469,565 Final $ 465,690 3,875 469,565 Final BudgetPositive (Negative) Actual Amounts $ 613 438,623 (6,976) 432,260 $ 396,953 68,737 465,690 396,953 68,737 465,690 3,875 3,875 (32,632) (36,507) 3,875 3,875 (32,632) (36,507) 495,312 499,187 123 $ 495,312 499,187 396,669 68,223 464,892 613 (27,067) (10,851) (37,305) $ 499,120 466,488 284 514 798 $ 3,808 (32,699) 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, 2013 Budgeted Amounts Original Final Actual Amounts Revenues: Other taxes Investment earnings Contributions Miscellaneous Total revenues $ 2,964,806 51,000 2,100 1,972 3,019,878 $ 2,964,806 51,000 2,100 1,972 3,019,878 $ 2,923,093 (50,514) 3,376 2,875,955 Expenditures: Capital outlay Total expenditures 10,326,866 10,326,866 10,922,123 10,922,123 (7,306,988) (7,902,245) (38,629) (38,629) 400 (38,629) (38,229) (7,345,617) (7,940,474) 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, 2012 Fund balance, June 30, 2013 $ 8,033,623 688,006 124 $ 8,033,623 93,149 Variance with Final BudgetPositive (Negative) $ (41,713) (101,514) (2,100) 1,404 (143,923) 2,144,500 2,144,500 8,777,623 8,777,623 731,455 8,633,700 400 (38,629) (38,229) - 693,226 10,326,432 $ 11,019,658 8,633,700 $ 2,292,809 10,926,509 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Accommodation School Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Fees, fines, and forfeits 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, 2012 Fund balance, June 30, 2013 $ 25,822 500 26,322 Final $ Actual Amounts 25,822 500 26,322 25,822 25,822 25,822 25,822 500 500 27,300 27,800 125 $ $ 53,729 (124) 53,605 Final BudgetPositive (Negative) $ 27,907 (624) 27,283 62,000 62,000 (36,178) (36,178) 500 (8,395) (8,895) 500 (8,395) (8,895) 27,300 27,800 $ 65,972 57,577 $ 38,672 29,777 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Capital Projects Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Investment earnings Total revenues $ Expenditures: Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ Final 5,670 5,670 $ 5,670 5,670 Actual Amounts Final BudgetPositive (Negative) $ $ (3,872) (3,872) - - 5,670 5,670 (3,872) (9,542) 5,670 5,670 (3,872) (9,542) 146,901 152,571 126 $ 146,901 152,571 - (9,542) (9,542) $ 195,724 191,852 - $ 48,823 39,281 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Capital Projects Funds Year Ended June 30, 2013 Variance with Budgeted Amounts Original Revenues: Investment earnings Total revenues $ Expenditures: Capital outlay Total expenditures 250 250 Final $ Actual Amounts 250 250 $ 34,255 34,255 Final BudgetPositive (Negative) $ 34,005 34,005 1,313,977 1,313,977 1,313,977 1,313,977 7,366 7,366 1,306,611 1,306,611 Excess (deficiency) of revenues over expenditures (1,313,727) (1,313,727) 26,889 1,340,616 Other financing sources (uses): Transfers in Total other financing sources (uses) 1,313,977 1,313,977 1,313,977 1,313,977 1,758 1,758 (1,312,219) (1,312,219) 250 250 28,647 Net changes in fund balances Fund balance, July 1, 2012 Fund balance, June 30, 2013 $ 88,510 88,760 127 $ 88,510 88,760 $ 89,174 117,821 28,397 $ 664 29,061 Coconino County Combining Statement of Fiduciary Net Position Investment Trust Funds June 30, 2013 Individual Investment Accounts Treasurer's Investment Pool Assets Cash and cash equivalents Interest receivable Total Assets $ Liabilities Total liabilities Net position Held in trust for pool participants 104,527,745 201,141 104,728,886 $ - $ 104,728,886 Total Investment Trust Funds 10,293,053 10,293,053 $ - $ 128 10,293,053 114,820,798 201,141 115,021,939 - $ 115,021,939 Coconino County Combining Statement of Changes in Fiduciary Net Position Investment Trust Funds Year Ended June 30, 2013 Individual Investment Accounts Treasurer's Investment Pool Additions: Contribution from participants Investment income Total additions $ Deductions: Distributions to participants Total deductions 472,762,757 (676,273) 472,086,484 $ 13,672,348 13,672,348 Total Investment Trust Funds $ 486,435,105 (676,273) 485,758,832 459,853,236 459,853,236 8,563,297 8,563,297 468,416,533 468,416,533 Change in net position 12,233,248 5,109,051 17,342,299 Net position, July 1, 2012 92,495,638 5,184,002 97,679,640 Net position, June 30, 2013 $ 104,728,886 129 $ 10,293,053 $ 115,021,939 Coconino County Statement of Changes in Assets and Liabilties Agency Fund Year Ended June 30, 2013 Assets Cash and cash equivalents Cash and investments held by trustee Total assets Liabilities Deposits held for others Due to other governments Total liabilties Balance June 30, 2012 $ Additions 2,103,463 907,253 $ 3,010,716 $ 61,375,515 1,306,632 $ 62,682,147 $ $ 59,994,619 2,687,528 $ 62,682,147 2,763,736 246,980 $ 3,010,716 130 Deletions $ $ $ $ Balance June 30, 2013 60,055,805 1,123,012 61,178,817 $ $ $ 3,423,173 1,090,873 4,514,046 58,437,941 2,740,876 61,178,817 $ $ $ 4,320,414 193,632 4,514,046 THIS PAGE INTENTIONALLY LEFT BLANK STATISTICAL SECTION Coconino County Statistical Section Year Ended June 30, 2013 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. ......................................................... 131-135 Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local revenue source, the property tax. .............................................................................................. 136-139 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. ..................................................................... 140-142 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. .............................................. 143-144 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. .................................................................... 145-149 Coconino County Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 2004 as restated 2005 2006 as restated 2007 2008 2009 2010 2011 2012 2013 Primary government: Governmental activities Net investment in capital assets 59,709,325 $ 109,735,410 $ 106,913,167 $ 128,198,350 $ 129,694,889 $ 128,372,030 $ 145,814,515 $ 142,964,843 $ 145,559,259 Restricted $ 38,233,250 42,603,789 39,761,272 36,994,894 29,929,358 28,345,559 28,386,829 63,914,015 65,858,399 63,564,437 Unrestricted 53,687,535 54,000,965 57,199,373 64,103,998 52,345,917 52,251,638 53,636,533 22,113,670 23,547,699 22,747,752 $ 143,679,378 $ 156,314,079 $ 206,696,055 $ 208,012,059 $ 210,473,625 $ 210,292,086 $ 210,395,392 $ 231,842,200 $ 232,370,941 $ 231,871,448 Total governmental activitities net position Source: 51,758,593 $ Coconino County Single Audit Reporting Package 131 Coconino County Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2004 2005 2006 2007 Expenses Governmental activities: General government $ 24,038,681 $ 25,093,451 Public safety 23,546,410 25,408,377 Highways and streets $ 26,858,863 $ 30,137,861 27,583,478 29,170,427 18,699,298 14,276,404 11,814,903 9,551,859 Sanitation 2,743,348 2,710,356 3,014,199 3,138,878 Health 9,631,470 10,518,140 11,160,577 11,575,909 Welfare 3,967,458 4,519,831 5,590,510 5,902,878 Culture and recreation 4,298,993 4,580,555 4,933,059 5,628,042 3,816,081 Education 2,228,618 2,920,657 3,730,202 Transportation 2,708,420 3,012,154 4,163,891 - Interest on long term debt 1,998,810 1,928,292 1,761,726 1,602,303 Defeasance of long-term debt Total expenses $ 89,438,612 $ 92,506,716 $ 98,348,364 $ 109,671,677 Program Revenues Governmental activities: Charges for services: General government 6,874,262 7,322,776 8,387,583 4,322,299 Public safety 3,787,242 3,671,837 3,643,195 4,132,207 158,596 967,377 298,492 3,459,682 Sanitation Highways and streets 1,072,675 1,033,289 1,138,057 1,437,621 Health 1,289,677 1,318,990 1,403,315 1,520,902 Welfare 768,396 921,571 1,455,946 1,599,249 Culture and recreation 907,000 995,382 1,031,838 1,188,201 5,925 8,309 71,232 107,301 266,099 286,090 542,003 - 32,101,547 31,800,725 39,359,052 33,695,469 Education Transportation Operating grants and contributions Capital grants and contributions 6,019,139 4,310,727 1,937,161 134,120 Total governmental activities program revenues $ 53,250,558 $ 52,637,073 $ 59,267,874 $ 51,597,051 Net (expenses) revenues $ (36,188,054) $ (39,869,643) $ (39,080,490) $ (58,074,626) General Revenues and Other Changes in Net Assets Governmental activities: Property taxes, levied for general purposes 5,914,008 6,159,732 6,806,423 7,011,847 Property taxes, levied for library 2,242,657 2,408,492 2,539,393 1,263,035 2,860,021 366,766 411,622 1,077,540 Property taxes, levied for accommodation school Property taxes, levied for flood control - - - - Property taxes, levied for health services - - - 12,384,595 10,153,344 10,304,992 11,580,757 Jail district sales tax General county sales tax 6,086,834 6,183,905 6,946,353 9,691,689 Parks and open spaces sales tax 2,470,248 2,573,730 2,894,657 3,076,949 Excise tax Franshise tax Shared revenue - state sales tax Shared revenue - state vehicle license tax - 93,516 100,295 111,593 102,781 115,300 141,758 134,640 14,439,695 15,283,056 16,684,292 18,125,003 4,850,913 5,073,200 5,547,275 5,695,838 1,688,999 1,720,959 1,809,330 1,646,585 61,822 1,888,242 745,407 4,489,537 1,269,042 206,469 749,146 158,415 17,606 81,129 47,325 Grants and contributions not restricted to specific programs Investment earnings Gain (loss) on disposal of capital assets Miscellaneous 23,279 Donated capital (7,282,396) Total general revenues $ 49,664,715 $ 52,504,344 $ 57,669,951 $ 59,390,630 Change in net position $ 13,476,661 $ 12,634,701 $ 18,589,461 $ 1,316,004 Source: Coconino County Single Audit Reporting Package Notes: Financial statement amounts broken out to show individual property tax categories for 2004. 132 Fiscal Year 2008 $ $ 2009 32,252,372 $ 2010 32,364,030 $ 2011 31,501,241 $ 2012 30,768,963 $ 2013 31,590,773 $ 32,049,113 32,282,534 33,164,905 31,592,406 36,552,608 33,763,301 37,609,509 17,990,951 16,655,737 15,639,291 13,811,657 15,955,413 15,958,230 3,216,176 3,274,456 3,138,985 3,151,415 3,088,446 2,102,071 12,192,703 12,692,864 11,216,546 11,045,264 11,550,850 12,199,793 6,666,186 7,615,522 8,273,139 8,284,852 6,907,365 6,642,756 6,957,602 7,814,879 7,725,556 7,286,373 7,243,089 7,063,893 4,437,125 4,892,986 5,278,556 4,767,625 5,232,363 5,941,255 - - - 287,272 603,969 512,256 414,902 178,025 69,723 832,030 - - 117,431,648 $ 118,987,635 $ 114,780,622 $ 115,956,029 $ 115,509,625 $ 119,636,343 8,273,916 7,316,495 7,169,300 6,022,842 4,995,911 4,465,482 2,986,695 3,421,790 3,679,918 3,821,300 3,272,289 3,107,973 74,556 1,152,294 69,689 93,370 93,636 99,728 1,375,478 1,375,437 1,321,418 1,386,848 1,402,290 1,346,328 1,340,236 1,316,870 1,247,031 1,151,680 1,181,490 1,301,249 1,337,392 1,262,876 2,101,024 1,905,924 1,802,447 1,467,637 1,159,535 1,170,109 794,306 865,254 760,863 850,519 115,216 95,016 116,020 130,681 113,749 171,298 - - - - 34,185,253 34,581,839 34,922,841 39,900,147 33,961,212 * 898,314 118,520 84,811 6,320,016 13,130 36,156,108 (1,892) $ 51,746,591 $ 51,811,246 $ 51,506,358 $ 61,598,062 $ 47,597,017 $ 48,964,430 $ (65,685,057) $ (67,176,389) $ (63,274,264) $ (54,357,967) $ (67,912,608) $ (70,671,913) 7,180,218 7,935,524 8,185,332 8,405,307 8,807,267 8,744,783 3,847,035 4,708,037 5,107,399 4,879,638 4,313,244 4,157,084 1,510,077 2,011,055 1,959,193 1,849,054 3,179,252 2,943,787 - 189,318 4,310 275 142 33 - - - 4,923,145 4,801,721 4,390,334 12,445,915 11,497,627 10,774,208 11,118,458 11,369,591 11,705,643 12,395,931 11,486,443 10,791,078 11,109,910 11,368,185 11,699,874 3,105,737 2,871,495 2,689,346 2,775,886 2,832,704 2,923,093 102,863 92,118 68,688 118,795 107,980 74,510 46,966 41,944 39,207 36,969 36,788 47,198 17,000,598 15,287,328 14,353,390 15,670,801 17,208,420 18,592,227 5,622,049 5,240,676 4,971,307 4,932,200 3,047,724 * 3,082,023 1,902,703 1,727,679 2,866,290 2,139,437 1,974,042 1,930,854 2,726,375 2,388,053 2,090,720 684,904 1,162,458 209,636 2,100 130,889 1,037,009 225,544 376,842 73,066 111,114 (316,192) (882,441) 42,869 55,430 182,451 5,169,268 $ 68,146,623 $ $ 2,461,566 $ 66,994,850 (181,539) $ 63,377,570 $ 74,796,775 $ 69,339,319 $ $ 103,306 $ 20,438,808 $ 1,426,711 $ * The fiscal year 2012 revenue amounts have been reclassified for comparison with fiscal year 2013 amounts. 133 70,172,420 (499,493) Coconino County Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2004 as restated 2005 2006 2007 2008 2009 2010 2011 1 2012 2013 General Fund Reserved $ Unreserved $ 24,114,908 126,359 $ 27,492,971 48,359 $ 29,626,015 60,623 $ 33,986,837 133,364 $ 27,495,342 173,499 $ 24,956,598 40,720 22,206,572 Nonspendable Unassigned Total general fund $ 24,114,908 $ 27,619,330 $ 769,789 $ 912,739 $ 29,674,374 $ 34,047,460 $ 27,628,706 $ 25,130,097 $ 22,247,292 $ 7,954,393 $ 549,455 $ 384,735 $ 592,136 $ 85,029 $ 1,509,973 $ 1,541,383 $ 26,368,723 26,453,752 $ 28,450,416 29,960,389 $ 29,184,907 30,726,290 $ 84,711 $ 271,992 $ 231,804 $ 58,606,383 58,691,094 $ 60,899,020 61,171,012 $ 61,776,253 62,008,057 All other governmental funds Reserved Unreserved, reported in: Special revenue funds 39,435,620 38,335,351 38,946,353 39,555,023 41,731,738 52,444,661 58,066,418 Capital project funds 2,992,244 4,248,949 2,097,854 1,968,757 10,265,707 1,176,745 842,548 22,630,545 18,511,896 19,967,912 12,318,744 15,066 46 - Debt service fund $ Nonspendable Restricted Total all other governmental funds $ Source: 65,828,198 $ 62,008,935 $ 61,012,119 $ 61,796,917 $ 52,561,966 $ 54,006,187 $ 59,501,102 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. 134 Coconino County Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2004 as restated 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenues: Property taxes $ Other taxes 8,545,310 $ 8,986,089 $ 10,427,635 $ 10,944,924 $ 12,447,359 $ 14,683,323 $ 15,286,914 $ 19,877,174 $ 21,134,274 $ 20,320,244 23,665,944 24,344,667 27,211,403 31,096,502 33,726,601 31,235,155 29,334,804 30,092,941 30,395,929 Special assessments 2,513,620 1,176,966 1,055,453 800,422 697,085 533,246 567,822 528,262 443,889 454,223 Licenses and permits 2,875,039 2,552,808 2,794,699 2,412,270 2,028,139 1,596,184 1,531,423 1,544,071 2,080,424 1,428,438 Fees, fines, and forfeits 26,455,658 1,393,864 1,384,704 1,894,884 1,958,043 2,426,546 2,636,342 2,475,047 1,912,702 1,536,208 1,434,276 Intergovernmental 48,840,485 52,202,702 59,239,916 52,924,453 52,807,937 52,131,109 51,035,314 61,706,361 51,173,921 60,388,098 Charges for services 8,764,702 10,072,643 10,504,525 11,811,190 12,413,030 11,059,144 10,616,158 11,421,254 11,176,829 9,280,931 Investment income 249,074 2,421,063 1,316,328 5,076,801 3,426,238 2,941,346 2,547,186 894,731 1,450,443 Contributions 524,882 334,598 285,572 420,695 638,673 498,811 654,529 582,801 629,849 Miscellaneous 408,090 712,638 888,221 681,321 644,530 1,039,999 411,152 547,255 491,740 99,088,951 $ 104,620,760 $ 116,925,301 $ 118,728,461 $ 119,902,252 $ 117,911,673 $ 115,265,445 $ 128,863,127 $ 118,617,608 $ 120,172,715 23,584,036 $ $ $ $ $ $ $ $ $ 31,049,633 Total revenues $ (360,692) 674,720 613,048 Expenditures: Current: General government $ 24,223,774 26,124,976 29,462,096 31,775,048 31,104,566 30,537,222 30,019,684 30,768,104 Public safety 22,650,149 23,967,742 26,768,092 28,039,150 31,240,851 31,381,596 30,336,374 36,611,002 34,375,074 39,373,290 Highways and streets 16,863,946 14,155,135 15,738,269 19,756,618 16,548,734 16,992,456 13,181,875 10,912,173 12,105,577 13,312,515 Sanitation 2,563,988 2,468,056 2,769,470 2,880,863 3,154,224 3,146,581 2,978,416 2,919,328 2,874,688 1,820,482 Health 9,489,392 10,322,173 11,029,368 11,403,856 12,077,635 12,361,518 10,956,358 10,795,196 11,338,648 12,036,240 Welfare 3,908,526 4,450,151 5,516,865 5,993,228 6,605,519 7,517,819 8,149,363 8,109,040 6,806,132 6,464,632 Culture and recreation 4,920,230 6,935,242 5,475,603 5,727,983 8,320,721 8,045,985 7,607,898 19,136,103 6,650,038 6,122,803 Education 2,220,609 6,003,942 3,425,244 3,618,428 4,273,975 4,730,288 5,110,500 4,727,587 5,085,903 5,783,644 Transportation 3,224,686 2,927,659 8,351,299 - - - - - - - 2,304,376 4,004,214 4,940,004 359,940 1,711,967 1,434,116 771,393 1,049,137 148,465 2,213,866 396,669 Capital outlay Debt service: Principal 3,611,446 4,082,543 4,280,700 4,303,256 18,545,471 2,508,901 2,637,213 2,255,923 2,353,289 Interest and other charges 1,998,810 1,928,292 1,761,725 1,602,303 1,435,999 512,256 414,902 287,272 178,025 97,340,194 $ 105,468,923 $ 116,181,615 $ 113,147,721 $ 135,690,144 $ 119,736,082 $ 112,681,514 $ 126,822,445 $ 112,683,943 743,686 5,580,740 2,583,931 2,040,682 5,933,665 1,529,218 20,194 Total expenditures $ Excess (deficiency) of revenues over expenditures 1,748,757 (848,163) (15,787,892) (1,824,409) 69,723 $ 118,643,497 Other financing sources (uses): Sale of capital assets $ Bond proceeds Transfers in Transfers out Total other financing sources and uses Net changes in fund balances 1,173,160 $ $ 314,542 382,917 - 11,349,358 16,765,844 14,112,086 (11,349,358) (16,765,844) (14,112,086) 3,471,783 $ 150,405 2,298,623 5,220,540 533,322 $ (314,841) $ 314,542 $ 1,058,228 368,694 $ 22,911 1,329,950 - - 795,000 - - - 12,934,995 37,093,497 15,481,676 15,042,578 21,912,454 (12,934,995) (36,982,221) (15,508,755) (15,042,578) (21,894,634) (791,550) (422,856) $ 5,157,884 $ 134,187 $ (15,653,705) 2,100 $ 770,021 $ (1,054,388) 28,179 $ 28,179 $ 2,612,110 $ 3,388,452 $ (14,608,758) 1,347,770 $ 14,661,648 (14,401,159) 52,890 $ 5,986,555 14,454,693 73,728 $ 1,602,946 Debt service as a percentage of noncapital expenditures 6.27% Source: Note: 6.30% 5.74% 5.53% 17.53% Coconino County Single Audit Reporting Package Financial statement amounts adjusted to show Capital Outlay in FY 2004 through 2008 135 2.62% 2.80% 2.06% 2.25% 0.42% Coconino County Assessed Value and Estimated Market Value of Taxable Property Last Ten Years Property Values Assessed Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Secured 963,512,887 1,049,556,398 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 Source: Note: Unsecured 210,604,408 214,223,437 223,578,936 225,916,527 229,241,854 234,920,747 224,614,413 232,224,257 45,163,364 45,173,364 Total 1,174,117,295 1,263,779,835 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 Total Direct Tax Rate 0.7449 0.7449 0.8652 0.8521 0.8588 0.8791 0.8340 1.0820 1.3170 1.3347 Total Secured and Unsecured Estimated Market Value 9,238,836,376 10,034,154,715 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 Total Assessed Value as a Percentage of Total Estimated Market Value 12.7 12.6 12.0 11.0 10.1 10.3 11.2 11.9 11.9 11.9 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. 136 Coconino County Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Direct Rates Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 County Operating 0.4753 0.4753 0.4753 0.4622 0.4383 0.4338 0.3973 0.3953 0.4303 0.4480 Library District 0.1899 0.1899 0.1899 0.1899 0.2205 0.2293 0.2367 0.2367 0.2367 0.2367 Flood Control District 0.0797 0.0797 0.2000 0.2000 0.2000 0.2160 0.2000 0.2000 0.4000 0.4000 Public Health Serivce District 0.2500 0.2500 0.2500 Total Direct 0.7449 0.7449 0.8652 0.8521 0.8588 0.8791 0.8340 1.0820 1.3170 1.3347 Overlapping Rates Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Note: Source: Fire District Assistance 0.1000 0.1000 0.1000 0.1000 0.1000 0.0972 0.0904 0.0925 0.0986 0.1000 School Equalization 0.4717 0.4560 0.4358 0.3306 0.3564 0.4259 0.4717 Community College 0.5775 0.5659 0.5525 0.5269 0.4865 0.4643 0.4267 0.4308 0.4734 0.4927 Cities 0 - 1.7127 0 - 1.7127 0 - 1.6627 0 - 1.5929 0 - 1.5519 0 - 1.5169 0 - 1.4913 0 - 1.4845 0 - 1.5283 0 - 1.5497 Tax rates are per $100 assessed valuation. Coconino County adopted tax rate schedules 137 Fire Districts .1500 - 3.0000 .6500 - 3.0000 .6500 - 3.0000 .4700 - 3.0000 .4100 - 2.7500 .4100 - 2.7500 .3000 - 3.0000 .2742 - 3.0000 .0600 - 3.2500 .3000 - 3.2500 Other Special Districts 0 - 1.1730 0 - 1.1730 0 - 1.1730 0 - 1.3500 0 - 2.2300 0 - 2.2300 0 - 2.9705 0 - 2.6680 0 - 1.5640 0 - 1.6919 School Districts .0500 - 9.6289 .0500 - 8.2761 .0500 - 10.4246 .0500 - 9.4606 .0500 - 9.9025 .0500 - 10.9896 .0500 - 9.9371 .0500 - 8.4520 .0500 - 8.5934 .500 - 10.7007 Coconino County Principal Property Tax Payers Current Year and Eight Years Ago 2013 2005 1 1 Percentage of Total Primary Assessed Value 4.35% Transwestern Pipeline Company 36,988,863 2 2.10 20,226,175 2 1.60 Unisource Energy Corporation 19,104,494 3 1.09 17,368,511 6 1.37 Burlington Northern/Santa Fe Railway Company 18,586,664 4 1.06 18,931,112 5 1.50 El Paso Natural Gas Company 17,799,035 5 1.01 19,085,580 4 1.51 City of Los Angeles Dept of Wtr & Pwr 16,987,661 6 0.97 19,095,834 3 1.51 W.L. Gore & Associates Inc. 15,992,930 7 0.91 10,282,172 8 0.81 Total Assessed Value $ 76,488,817 Taxpayer Arizona Public Service Company Rank Total Assessed Value $ 64,513,120 Rank 1 Percentage of Total Primary Assessed Value 5.10% Nevada Power Company 9,954,898 8 0.57 11,767,729 7 0.93 Qwest Corporation 6,924,246 9 0.39 5,027,767 10 0.40 Perrin Ranch Wind LLC 6,876,755 10 0.39 - 225,704,363 Questar Southern Trails Pipeline Company Total Principal Taxpayers $ Total Coconino County Primary Assessed Value $ 1,759,609,915 Source: 0 12.83% $ 7,096,504 193,394,504 $ 1,263,779,835 Coconino County Assessor 1 Arizona Department of Revenue, Central Information Services 138 9 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, 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 County Tax Levied For the Fiscal Year $ 7,884,275 8,307,325 9,576,903 10,373,130 11,991,569 14,061,783 14,383,909 19,513,519 19,880,920 19,356,876 Amount $ Percentage of Levy 7,684,016 8,116,516 9,416,476 10,197,426 11,693,983 13,583,453 13,977,568 18,641,220 19,239,142 18,811,741 97.46 97.70 98.32 98.31 97.52 96.60 97.18 95.53 96.77 97.18 Total Collections to Date Collections in Subsequent Years $ Amount Percentage of Levy 182,143 182,162 157,605 169,354 278,254 454,062 401,018 801,119 551,819 - $ 7,866,159 8,298,678 9,574,081 10,366,780 11,972,237 14,037,515 14,378,586 19,442,339 19,790,961 18,811,741 99.77 99.90 99.97 99.94 99.84 99.83 99.96 99.64 99.55 97.18 County Tax Levied for the Fiscal Year Fiscal Year Ended June 30, 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Note: County Operating Public Health Service District Flood Control District County Library Total County $ $ $ $ $ 7,884,275 8,307,325 9,576,903 10,373,130 11,991,569 14,061,783 14,383,909 19,513,519 19,880,920 19,356,876 5,321,882 5,582,027 5,998,653 6,332,859 6,637,571 7,328,876 7,320,104 7,631,149 7,774,986 7,836,325 5,153,351 4,588,969 4,397,524 370,139 404,882 1,081,336 1,237,412 1,508,651 2,014,075 1,961,323 1,849,827 3,172,129 2,959,452 2,192,254 2,320,417 2,496,913 2,802,859 3,845,347 4,718,832 5,102,482 4,879,193 4,344,836 4,163,575 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. 139 Coconino County Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 Certificates of Participation $ 21,940,000 21,940,000 20,100,000 18,180,000 - Jail District Revenue Bonds $ 16,210,000 16,210,000 14,370,000 12,445,000 10,435,000 8,340,000 6,145,000 3,855,000 1,970,000 Special Assessments $ 3,373,420 2,840,377 2,490,948 2,153,550 1,885,208 2,364,178 2,016,964 1,646,042 1,262,673 Total $ 41,523,420 40,990,377 36,960,948 32,778,550 12,320,208 10,704,178 8,161,964 5,501,042 3,232,673 Percentage of Personal Income 1.21% 1.11% 0.92% 0.77% 0.28% 0.24% 0.18% 0.12% 0.07% 2013 - - 866,084 866,084 NA Source: 1 Per Capita $ 331.88 322.70 287.20 251.29 93.44 80.19 60.64 40.90 23.77 1 2 NA 2 Details regarding the County's oustanding 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 2013. 140 Coconino County Legal Debt Margin Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2012 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 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 $ $ 2004 70,447,038 70,447,038 0.00% $ $ 2005 75,826,790 75,826,790 0.00% $ $ 2006 82,077,804 82,077,804 0.00% $ $ 2007 90,855,488 90,855,488 $ $ 0.00% 2008 101,290,969 101,290,969 Fiscal Year 2009 $ 110,446,503 $ 110,446,503 0.00% 0.00% 2010 $ $ 2011 115,123,114 115,123,114 0.00% $ $ $ $ 2012 110,408,557 110,408,557 $ $ 105,576,036 105,576,036 0.00% Source: Assessed value information obtained from the Coconino County Assessor. Debt amounts obtained from the Coconino County Single Audit Reports. Note: 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. 141 0.00% 1,759,609,915 105,576,595 105,576,595 2013 $ $ 105,576,595 105,576,595 0.00% Coconino County Pledged Revenue Coverage Last Ten Fiscal Years Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jail District Less: Revenues 1 $ 13,506,384 13,665,611 13,951,974 17,132,399 20,714,914 22,039,625 23,176,800 24,465,343 25,597,226 26,433,871 Expenditures 2 $ 10,259,298 8,825,891 9,742,506 10,708,410 12,543,072 12,175,349 12,060,220 12,366,420 12,638,737 12,954,957 Special Assessment Fiscal Revenues 1 $ 1,219,980 1,419,073 770,745 762,301 1,024,569 1,082,701 938,727 1,001,654 971,522 931,380 Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Jail District Revenue Bonds Net Debt Service Available Revenue $ 3,247,086 4,839,720 4,209,468 6,423,989 8,171,842 9,864,276 11,116,580 12,098,923 12,958,489 13,478,914 Principal $ 1,760,000 1,840,000 1,920,000 2,010,000 2,095,000 2,195,000 2,290,000 1,885,000 1,970,000 - Interest $ 816,031 735,372 956,555 566,908 477,958 383,992 284,622 177,311 89,333 1,500 Coverage 1.26 1.88 1.46 2.49 3.18 3.82 4.32 5.87 6.29 Special Assessment Bonds Debt Service Principal $ 133,916 152,297 393,571 293,256 270,471 313,901 347,213 370,923 370,923 396,669 $ Interest 33,168 34,225 155,405 168,330 126,011 128,264 130,280 109,961 109,961 68,223 Coverage 7.30 7.61 1.40 1.65 2.58 2.45 1.97 2.08 2.02 2.00 Source: Details regarding the County's oustanding 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. 142 THIS PAGE INTENTIONALLY LEFT BLANK Coconino County Demographic and Economic Statistics Last Ten Fiscal Years Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 Population 125,117 127,025 128,695 130,442 131,853 133,477 134,611 134,105 136,011 2013 NA Sources: Personal Income (thousands of dollars) $ 3,477,267 3,754,693 4,111,297 4,348,995 4,590,014 4,514,396 4,523,918 4,617,232 4,735,934 1 NA Per Capita Personal Income $ 27,792 29,559 31,946 33,340 34,812 33,822 33,607 34,430 34,820 1 NA Unemployment Rate 5.2% 4.9 4.2 3.7 5.1 7.1 8.4 8.2 8.3 1 7.9 Population and personal income through 2011 obtained from U.S. Department of Commerce, Bureau of Economic Anaysis (BEA). Unemployment rate obtained from Arizona Unemployment Statistics Program, Research Administration. 1 Population and personal income estimates were not yet available for fiscal year 2013. 143 Coconino County Prinicpal Employers Current Year and Seven Years Ago 2013 1 2006 2 Employees 2,571 Rank 1 Percentage of Total County Employment 3.86% Flagstaff Medical Center W.L. Gore 2,200 1,950 2 3 3.31% 2.93% 1,999 1,300 2 4 2.95% 1.92% Flastaff Unified School District 1,375 4 2.07% 1,700 3 2.51% Coconino County Employer Northern Arizona University Employees 3,393 Rank 1 Percentage of Total County Employment 5.02% 1,200 5 1.80% 1,056 5 1.56% City of Flagstaff 657 6 0.99% 948 6 1.40% Walmart 630 7 0.95% - - Walgreens Distribution Center 407 8 0.61% 400 7 0.59% SCA Tissue 255 9 0.38% 279 8 0.41% Nestle Purina 240 10 0.36% - - Total Employment in Coconino County As of June 30 Sources: 3 66,530 67,652 1 Flagstaff Chamber of Commerce as of March 2013 2 Arizona Department of Economic Security, Worforce Arizona Statistics 3 Arizona Unemployment Statistics Program, Research Administration Note: Information was not available prior to 2006. 144 - - 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 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 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 2004 2005 2006 2007 24.00 11.00 20.50 20.75 42.25 4.00 26.50 18.00 11.00 18.00 17.75 2.00 5.00 4.00 4.48 1.00 21.00 16.50 7.00 28.50 8.00 24.00 11.50 20.50 19.50 40.75 4.00 27.00 18.00 10.00 19.00 18.25 2.00 5.00 4.75 4.48 1.00 21.00 17.00 7.00 28.50 8.00 24.00 13.50 21.50 19.50 42.00 5.00 28.00 17.00 10.00 27.50 20.50 2.00 5.00 4.75 4.48 1.00 22.00 17.00 6.85 30.50 8.00 26.00 13.50 23.50 21.50 42.00 5.00 28.00 19.00 10.00 28.00 22.00 2.50 5.00 5.00 4.48 1.00 22.00 17.00 10.40 31.00 8.50 60.00 1.00 166.58 73.50 86.50 59.60 1.00 164.33 74.95 86.00 58.60 1.00 146.33 75.28 91.50 59.60 1.00 146.33 75.28 93.50 134.90 136.40 136.40 136.40 8.00 9.00 8.00 8.00 110.76 113.79 121.24 122.50 11.00 91.87 8.80 51.32 10.88 58.13 10.88 47.92 16.75 1,072.09 17.25 1,033.67 19.00 1,056.44 19.00 1,065.79 Source: Coconino County Budget Books 2004-2013 145 2008 Full-time Equivalent Employees as of June 30 2009 2010 2011 2012 2013 27.00 13.50 23.35 23.00 42.75 10.50 28.00 19.00 11.00 28.00 24.25 2.50 5.00 5.00 5.00 1.00 22.00 19.00 11.36 34.75 8.50 27.08 14.50 23.35 23.50 43.00 10.50 28.00 18.00 10.00 30.00 24.50 2.50 5.00 5.00 5.00 1.00 22.00 19.00 11.36 35.00 8.00 27.00 14.00 23.35 23.50 42.00 11.00 28.00 18.00 10.00 30.00 23.50 2.50 5.00 5.00 5.00 1.00 21.00 19.00 11.36 36.00 8.00 25.00 13.50 23.35 22.50 42.00 12.00 26.00 17.00 10.00 31.00 22.75 2.50 5.00 5.00 5.00 4.00 21.00 17.00 9.58 35.00 8.00 25.00 13.50 23.35 22.50 42.00 12.40 26.00 18.25 9.73 28.00 22.75 2.50 5.00 5.00 5.00 3.00 21.00 17.00 8.88 33.50 8.00 26.00 13.50 23.98 22.50 42.00 13.22 26.00 18.25 9.73 24.00 22.75 2.50 5.00 5.00 5.00 21.00 17.00 11.66 34.33 8.00 60.10 1.00 165.83 75.48 94.50 60.10 1.00 168.83 75.28 94.50 60.10 1.00 168.83 72.08 96.50 59.50 1.00 166.83 71.20 97.50 59.50 1.00 169.63 69.58 97.50 58.80 1.00 169.68 68.63 99.65 136.40 136.40 136.40 121.15 120.50 132.13 8.00 8.00 8.00 8.00 8.00 8.00 129.58 132.53 135.17 111.65 113.71 111.60 10.88 49.15 13.88 51.65 13.00 43.17 13.00 48.22 12.00 51.22 12.00 50.32 20.50 1,115.88 21.00 1,129.46 21.00 1,119.46 19.75 1,074.98 19.75 1,074.75 20.00 1,083.23 146 Coconino County Operating Indicators by Function/Program Last Nine Fiscal Years Fiscal Year Function/Program 2005 2006 2007 2008 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 3,647 3,611 3,805 3,502 1,923 10,175 2,061 8,512 1,934 7,487 1,794 6,950 9,034 65,346 $ $ 8,994 52,846 $ 8,334 49,833 27,994 24,514 27,462 26,206 705 683 605 512 4,727 4,567 4,562 4,001 59,131 65,006 61,336 65,977 54,356 62,046 42,701 66,000 1,275 1,291 1,192 1,108 595 747 597 1,030 725 998 619 874 70,043 71,111 72,518 74,000 1,204 241,440 $ 364 $ 8,624 95,474 904 34,997 1,252 242,688 $ 374 $ 860 34,569 1,343 244,527 $ 365 $ 870 34,650 1,280 220,000 397 $ 878 34,779 39,227 40,324 42,344 38,911 42,000 40,839 42,536 43,126 2,350 52 22 2,521 104 22 1,712 28 24 2,114 35 75 9,939 4,513 16,250 4,481 10,729 3,664 10,783 4,048 23,171 20,137 1,840 21,520 21,071 2,949 21,227 23,612 3,591 24,400 25,100 3,042 Source: County Department records and Adopted Budgets Note: Information was only available for nine years. 147 Fiscal Year 2010 2009 $ 2013 3,950 4,575 4,583 4,343 1,581 6,295 1,783 4,624 1,880 5,545 1,455 2,629 1,453 3,496 7,518 35,028 $ 466 3,889 7,009 24,150 $ 6,278 15,231 $ 7,002 16,000 $ 6,915 13,444 26,801 26,506 27,683 22,819 400 370 451 552 3,393 3,026 3,133 2951 37,929 71,000 37,000 66,000 37,000 67,000 36,500 68,000 1,179 1,024 862 943 900 692 1,111 766 1,166 711 1,077 608 716 625 873 77,100 73,796 74,000 74,786 74,000 1,236 237,055 1,253 $ 196,824 1,252 $ 189,911 1,222 $ 153,524 1,193 $ 198,079 366 $ 2012 3,910 27,596 $ 2011 817 54,433 372 $ 662 46,906 372 $ 662 30,584 32,000 73,000 407 $ 619 34,707 432 $ 608 39,814 40,656 50,311 52,815 56,195 60,955 45,049 41,711 45,441 45,095 42,841 2,382 53 21 2,303 45 60 2,500 70 55 2,400 70 80 2,088 62 44 10,512 3,838 10,510 3,662 4,300 3,400 4,693 3,400 3,825 4,923 20,806 24,366 3,012 20,500 25,076 3,180 18,395 26,649 3,303 18,500 25,076 3,200 14,268 20,220 1,404 148 Coconino County Capital Asset and Infrastructure Statistics by Function Last Nine Fiscal Years Function General government Facilties 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 facilties Wells Health Public health facilties Animal transport vehicles Culture and recreation Parks Acres protected as open space Trail miles available for public use Education School building Fiscal Year 2009 2005 2006 2007 2008 2010 2011 2012 2013 682,757 703,135 703,032 684,914 684,914 684,914 684,914 684,914 684,914 2 8 55 2 8 52 2 8 69 2 8 74 2 8 74 2 8 75 2 8 77 2 8 79 2 8 55 30 339 723 30 319 710 30 319 711 30 322 711 30 323 711 30 323 711 30 332 711 30 319 611 38 319 603.72 10 1 5 10 1 5 10 1 5 10 1 5 10 1 5 10 1 5 10 1 5 8 1 5 8 1 5 1 2 1 2 1 3 1 3 1 3 1 3 1 3 1 4 1 4 5 589 14 5 589 14 7 589 14 9 589 16 9 589 17 9 589 17 9 2,503 18 9 2,600 18 9 2,600 18 2 2 2 2 2 2 2 2 2 Source: Coconino County capital asset records and county departments Note: Information was only available for nine years. 149