Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2016 Coconino County Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2016 COCONINO COUNTY BOARD OF SUPERVISORS Art Babbott District 1 Elizabeth C. Archuleta District 2 Vice Chairperson Mandy Metzger District 4 Matthew G. Ryan District 3 Lena Fowler District 5 Chairperson COCONINO COUNTY MANAGEMENT Cynthia Seelhammer County Manager Neal Young Deputy County Manager MikeTownsend Deputy County Manager Finance Team Bonny Lynn, MPA, Chief Financial Officer Thomas Johnson, CPA, Accounting Manager Nancy Ho, MBA, Senior Accountant Chyenne Schmidt, CPA, Senior Accountant Marsha Westling, Accountant www.coconino.az.gov Coconino County Table of Contents Year Ended June 30, 2016 Introductory Section Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Organization Chart Coconino County officials Page 3 13 14 15 Financial Section Independent Auditors' Report 19 Management’s Discussion and Analysis (MD&A) 23 Basic Financial Statements Government-Wide Statements Statement of Net Position Statement of Activities 41 43 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities 44 47 48 50 Proprietary Fund Financial Statements Statement of Net Position Statement of Revenues, Expenses, and Changes in Fund Net Position Statement of Cash Flows 51 52 53 Fiduciary Funds Financial Statements Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position 54 55 Notes to Financial Statements 57 Required Supplementary Information Budgetary Comparison Schedules - General Fund and Major Special Revenue Fund General Fund Public Works/HURF Fund Jail District Fund Public Health Services District Fund i 106 108 109 110 Coconino County Table of Contents Year Ended June 30, 2016 Financial Section (Continued) Notes to Budgetary Comparison Schedules Page 111 Schedule of the County’s Proportionate Share of the Net Pension Liability – Cost-Sharing Pension Plans 112 Schedule of Changes in the County’s Net Pension Liability and Related Ratios – Agent Pension Plans 113 Schedule of County Pension Contributions 115 Notes to Pension Plan Schedules 117 Schedule of Agent Retirement Plan’s and Coconino County Postemployment Healthcare Plan’s Funding Progress 118 Notes to Schedule of Agent Retirement Plan’s and Coconino County Postemployment Healthcare Plan’s Funding Progress 119 Combining and Individual Fund Statements and Schedules Listing of Nonmajor Governmental Funds Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 123 126 134 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Special Revenue Funds Adult Probation Grants and Fees Assessor Storage and Retrieval Career Center Grants Clerk of the Superior Court Grants and Fees Community Services Grants and Fees Conciliation Court County Attorney Grants and Fees County Improvement Districts-Special Revenue County Library District Emergency Services Grants Flood Control District Fund Inmate Welfare Jail Enhancement Justice Courts Grants and Fees Juvenile Court Grants and Fees Legal Defender Grants and Fees ii 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 Coconino County Table of Contents Year Ended June 30, 2016 Financial Section (Continued) Special Revenue Funds (Continued) National Forest Fees Parks and Recreation Grants and Fees Public Defender Grants and Fees Recorder Storage and Retrieval School Superintendent Grants and Fees Sheriff Grants and Fees Solid Waste Superior Court Grants and Fees Taxpayer Information Fund Other Special Revenue Funds Page 158 159 160 161 162 163 164 165 166 167 Debt Service Fund County Improvement Districts – Debt Service 168 Capital Project Funds Parks and Open Spaces Tax Projects Fund Accommodation School County Improvement Districts - Capital Projects Other Capital Projects Funds 169 170 171 172 Investment Trust Funds Combining Statement of Fiduciary Net Position – Investment Trust Funds Combining Statement of Changes in Fiduciary Net Position – Investment Trust Funds Agency Fund Statement of Changes in Assets and Liabilities – Agency Fund 173 174 175 Statistical Section Financial Trends Net Position by Component Changes in Net Position Fund Balances - Governmental Funds Changes in Fund Balances – Governmental Funds 181 182 184 185 Revenue Capacity Assessed Value and Estimated Market Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Property Tax Payers Property Tax Levies and Collections 186 187 188 189 iii Coconino County Table of Contents Year Ended June 30, 2016 Statistical Section (Continued) Debt Capacity Ratios of Outstanding Debt By Type Legal Debt Margin Pledged Revenue Coverage Page 190 191 192 Demographic and Economic Information Demographic and Economic Statistics Principal Employers 193 195 Operating Information Full-Time Equivalent Employees By Function Operating Indicators By Function/Program Capital Asset and Infrastructure Statistics By Function 196 198 200 iv INTRODUCTORY SECTION 1 THIS PAGE BLANK 2 December 22, 2016 The Honorable Board of Supervisors and Citizens of Coconino County, Arizona: We are pleased to provide you the Comprehensive Annual Financial Report (CAFR) of Coconino County for the fiscal year ended June 30, 2016. The report provides additional information to the Board and citizens on the County’s financial position and results of operations. Pursuant to Arizona Revised Statute (A.R.S.) 41-1279.21 the Coconino County CAFR was audited in accordance with generally accepted auditing standards for the year ended June 30, 2016 and has been issued an unmodified (“clean”) opinion. This report consists of management’s representations concerning the finances of Coconino County. Consequently management assumes full responsibility for the accuracy of the information and completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the County has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse, and to compile sufficient reliable information for the preparation of the County’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The Arizona Office of the Auditor General has audited the County’s financial statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County for the fiscal year ended June 30, 2016, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded that there was a reasonable basis for rendering an unmodified (“clean”) opinion that the County’s financial statements for the fiscal year ended June 30, 2016, are fairly presented in conformity with GAAP. The Independent Auditor’s Report is located at the front of the financial section of this report. The report is prepared in conformance with standards of financial reporting established by the Governmental Accounting Standards Board (GASB), and using the guidelines established by the Government Finance Officers Association of the United States and Canada (GFOA). GAAP requires that management provide an analysis, narrative introduction, and overview to accompany the basic financial statements, called the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A 3 immediately follows the independent auditor’s report in the financial section of this report. The County’s CAFR is intended to fulfill the State of Arizona Transparency Law, Arizona Revised Statutes §41-725. This report consists of management’s representations concerning the finances of the County. Consequently, management assumes full responsibility for the completeness and reliability of the information contained in this report. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Coconino County Profile Coconino County was established on February 19, 1891 by the 16 th Territorial Assembly with an initial population count of 4,000. The County encompasses approximately 18,617 square miles – it is the largest county in Arizona and the second largest in the United States. Despite its size, Coconino County is one of the most sparsely populated counties in Arizona with a population of 7.3 per square mile (2010 Census). Only 12% of the County’s total square miles are private property. The remainder is a combination of state, federal and reservation land. The estimated 2016 population of Coconino County is 143,616. Flagstaff is the County seat and the largest city in the County. The County is home to the Grand Canyon, four other federal recreation areas and three state parks. The County is also home to reservation land belonging to the Navajo, Hopi, Havasupai, Hualapai and Paiute tribes. Coconino County’s government consists of an elected Board of Supervisors (Board). There are five districts, each represented by a Supervisor who resides in the district. The Board holds the policy-making and legislative authority for the County. It is responsible for the overall management and approval of all departmental budgets and tax rates. The Board appoints a County Manager who serves as the Chief Administrative Officer for the County. Departments are either headed by an appointed official, appointed by the Board, or an elected official. Elected offices are statutorily determined and include the Sheriff, County Attorney, Recorder, Treasurer, Assessor, Superintendent of Schools, Constable, Clerk of the Superior Court, and the Judiciary. Coconino County provides a full range of services including law enforcement and public safety, health services, sanitation, welfare programs, highway construction and maintenance, parks and recreation, and education. The financial reporting entity includes all the funds of the primary government. Component units are legally separate entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the County’s operations. Additional information can be found in the notes to the financial statements (See Note 1.A.). The Board and the County Manager use a ten-year financial plan, along with fiscal management policies, budget management policies, and strategic goals and priorities 4 to guide the overall development and management of the budget. Annually, departments are required to provide revenue and expenditure estimates for the current fiscal year and planned operations for the following year. These estimates are used to update the ten-year financial plan. Departments submit their budgets which are evaluated using criteria and strategies adopted by the Board and budget recommendations are based on these evaluations. Final budget decisions are also subject to the availability of funds within the context of the ten-year financial plans; conformance with fiscal and budget management policies; and meeting the County’s strategic goals and priorities. The final budget must be adopted by the Board on or before the third Monday in July. The tax rate and levy must be set on or before the third Monday in August each year. The level of budgetary control is at the department level within a fund. Transfers between these levels must be approved by the Board. Additionally, actual expenditures may legally not exceed the final budget. Assessing Coconino County’s Economic Condition The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the County operates. Economic Outlook. Arizona’s economy contains some positive trends. As reported by the Economic and Business Research Center of the University of Arizona’s Eller College of Management in June 2016, the State of Arizona’s economy is on an accelerated growth track from the prior year. The State continues to add jobs and residents at a faster pace than the nation, and is expected to continue to do so in the next three years. Employment increased 2.6% in CY 2015 for the state outpacing last year’s 2.0% rate, with population growth rising modestly from 1.3% to 1.4%. Single family housing permits in the Greater Phoenix area were up over 44% in January 2016 compared to a year prior. Total activity at Sky Harbor Airport was up 4.5% in 2015. The local and State economy are very dependent on visitors to the State, which adds to our largest source of revenue, the sales tax. Coconino County’s local economy lags the State and includes a poverty level of 23% of total population compared to the State at 18%. For population under age 18, the level rises to 28% in the County compared to 26% for the State. The higher rates of poverty in the County create an opportunity to focus public health, education, public safety, and community services toward the needs of this population. Both the government and private sectors are experiencing slow growth, however the government sector is not growing at the rate of the private sector. This will challenge local governments in planning for adequate compensation levels to compete for experienced staff and to plan for implementing deferred capital needs in the areas of technology and facilities capital repair and replacement. In addition, retirement contributions have continued to grow at an accelerated rate prior to, and after the 5 recent recession. The changes implemented over many years to the Arizona State Retirement System resulted in slowing the growth of contribution requirements and in the next few years rates may begin to decline. The area of concern that has had the largest growth of unfunded liabilities and contribution requirements is the Public Safety Personnel Retirement System (PSPRS). Impact of State Economic Condition. Although the County’s sound long-term financial planning considered and included a recessionary growth model based on prior recessions, the depth and breadth of the most recent economic downturn to both the State and local economies continues to impact County revenues. The County anticipates potential reduced and reallocated State and Federal Highways and Streets revenues, shifts in mandated State costs to counties, and further cuts to County funding for Public Safety, Courts, Health and Social Services programs. This causes continued uncertainty for Counties across the state and into the foreseeable future. The County will continue to work with the Governor, State Legislators, County Supervisors Association and the Arizona Association of Counties to find solutions to state cost shifts to counties. In addition to these efforts, the County is actively pursuing solutions to decrease reliance on state controlled revenues and to increase locally controlled sources. Additional details are included in Management’s Discussion and Analysis (MD&A) under “Economic Factors and Next Year’s Budget” which can be found in the Financial section of the CAFR. Local economy. The economy of Coconino County is based primarily on public administration, the service industry, wholesale and retail trade, and tourism. The City of Flagstaff (the County seat) is the center of educational, governmental and scientific employment. The list of major employers include; Northern Arizona University, Flagstaff Medical Center, W.L. Gore and Associates, Flagstaff Unified School District, Coconino County, City of Flagstaff, Twin Arrows Navajo Casino and Resort, Walmart, Grand Canyon Railway, SCA Tissue, Coconino Community College, the U.S. Forest Service, the U.S. National Park Service, the Navajo Nation, and Nestle-Purina. Tourism significantly impacts the local economy. Old Route 66 runs across most of the County as well as US Interstate 40. Attractions include National Parks, National Monuments and State Parks, some of which are: the Grand Canyon, Sedona/Oak Creek Canyon, Glen Canyon National Recreation Area, Wupatki National Monument, Sunset Crater National Monument, Walnut Canyon National Monument, and Slide Rock State Park. Over 9.5 million people visited these attractions in FY16. Strategic Budget Process and Financial Planning. The County has had a comprehensive long-term financial planning process in place since fiscal year (FY) 2007. In FY16 the County continued to expand on the Strategic Budget Process begun in FY10. The goal of the process is to provide consistent delivery of essential services to its residents in times of economic growth or recession, and to identify opportunities for cost containment through prevention efforts. Keys to this process are; 1) a ten-year financial plan, 2) aligning high probability revenue types with mission critical expenditures, 3) balancing recurring expenditures with recurring revenue, 4) building prudent reserves, 5) planning the budget to include employee compensation, facilities 6 R & R, and IT, 6) continued development of the Strategic Budgeting Process, and 7) development of new revenue sources. The County, as a member of the Northern Arizona Public Employee Benefit Trust (NAPEBT), has successfully achieved lower than average growth in health insurance costs over the past several years. Through becoming a self-funded trust and implementing a wellness program, claims experience has stayed well below national averages. In addition, during FY16, NAPEBT opened an on-site-model health clinic, called the Vera Clinic. All employees and their dependents, covered by NAPEBT for health insurance, can utilize the Vera Clinic. The goal in operating the clinic is to attain sustainable, long-term health care cost containment. Budget Management Policy  The Board uses the approved County fiscal policies and strategic priorities to guide the County’s budget process. Decisions are evaluated within these contexts as well as the accompanying ten-year financial plan.  During the budget process, departments are asked to develop and evaluate a line item budget for both revenues and expenditures and present program performance measures and outcomes. Funding for all County programs is submitted to the Budget Team and County Manager, for a recommendation to the Board for approval of funding. Requests for increases to program funding must demonstrate the estimated return on investment, efficiency, or be clearly tied to a specific strategic priority outcome indicator, as adopted by the Board.  All requested funding increases should be tied to the outcomes of the adopted Strategic Priority Areas and will be evaluated for funding based on criteria adopted by the Board. Coconino County’s fiscal policies promote long-term stability, provide perspective to the financial picture of the County in its entirety rather than single issues, link long-term financial planning to day-to-day operations, and provide a framework for the Board and the citizens for measuring the fiscal impact of government services against established fiscal parameters. The fiscal policies include: Operating Budget Policies. The operating budget is a plan for allocating resources. Capital Budget Policies. The capital budget provides resources for capital maintenance and future capital needs, without adversely affecting the operating budget. Revenue Policies. Funding for public programs should be derived from a fair, equitable and adequate resource base, while minimizing tax differential burdens. 7 Reserve Policies. Responsible reserve policies will provide adequate resources for cash flow and contingency purposes, while maintaining reasonable tax rates. The County maintains a contingency for cash liquidity and as an emergency contingency in the County General Fund equal to at least 10% of its annual revenue budget. The County also maintains a revenue smoothing reserve of 5% of its annual revenue budget. These funds should only be utilized to cover short-term drops in County revenues to maintain service levels in difficult economic times. Debt Policies. Responsible debt management policy maintains the County’s ability to incur present and future debt at minimal interest rates in amounts needed for infrastructure and economic development without endangering its ability to finance essential County services. Major Initiatives/Impacts Road Maintenance Sales Tax (RMST) (Proposition 403) Revenue reductions from HURF funds and lack of federal dollars for highway and road improvements left the Board with few options to address seriously deteriorating roads. County residents were involved in a Citizens Road Advisory Committee, which came out of their deliberations with a recommendation to the Board that a ballot measure was the best option. Coconino County led a successful educational campaign, over a six month period, leading up to the November 2014 election to ask the voters of the county to approve Prop 403, a 3/10th of a cent sales tax dedicated to maintenance of the county road system. The voters approved the ballot measure by a good margin. The 3/10th of a cent sales tax went into effect on January 1, 2015. The tax will be in effect for 20 years. Fiscal Year 2016 was the first year of full twelve month collections for the RMST. Total collections were $ 8.43 million. A partial list of road projects completed using RMST funds includes; Townsend-Winona Pavement Project, Flagstaff Meadows Unit I Pavement Repair Projects, Lake Mary Road Chip Seal, Williams and Parks Chip Seal projects, Fort Tuthill Loop and Purple Sage, Pine Del Estates and Westwood Estates. With the RMST revenue, Public Works was also able to replace aging heavy equipment and fill many of the 40 vacant positions held open during the past two years, which will staff the multitude of projects slated for completion over the next 20 years. Public Safety Personnel Retirement System (PSPRS) The state oversees many of the public pension systems, but the PSPRS is the responsibility of each separate jurisdiction. In the State of Arizona, the PSPRS is only 50 percent funded. That means there is an unfunded liability – a debt -- of $6.40 billion (yes with a “b”) in the State of Arizona. These pensions are a promise that was made to our law enforcement officers, so this is a debt that must be paid. 8 For Coconino County, as of June 1, 2016, our PSPRS account had assets of $10.00 million and liabilities of $40.20 million. This means an unfunded liability (debt) of $30.20 million. The June 1, 2016 funded status was 25 percent. Coconino County pays about $2.50 million to PSPRS every year to cover the costs of current law enforcement employee pensions. During FY16 the County had the ability, and statutory authority, to make a major payment toward PSPRS. In the month of June 2016, the County Board of Supervisors authorized making a $10.00 million payment toward the PSPRS unfunded pension liability. This pay down now will improve the County’s financial situation greatly in the future. That $10.00 million paid now saves between $22.00 and $25.00 million over the next 20 years. The savings is a result of a combination of factors; 1) the much higher return on investment at PSPRS compared to local returns on the $10 million, and 2) reduction by $ 0.50 million per year now paid by Coconino County on the debt, based on current amortization of the unfunded liability on a straight line basis over 20 years. The cash to make the $10.00 million payment came from Jail District fund balance. Through the good work of the Criminal Justice Coordinating Council (CJCC), and programs to reduce recidivism and manage jail populations, jail beds became available over the past decade and a half, to rent to other agencies. A total of $28.00 million in bed rental revenue was raised. The county retired remaining Jail District debt and was able to generate savings through greater efficiency and effectiveness throughout the CJCC system; including judges, police, the sheriff, probation and specialty court programs. After making the $10.00 million payment, the Jail District has a remaining fund balance of $12.57 million at June 30, 2016. Repair and Replacement (R&R) and Strategic Capital Planning The County maintains a Facilities Repair and Replacement Fund for the routine maintenance of County facilities. This fund is used for carpet replacement, HVAC repairs and replacements, painting, window replacements, and many other projects. Facilities staff has a planned ten-year schedule of projects and the financial plan includes maintaining funding for a minimum of four years of projects. Four years of funding will allow the County to continue investing in our assets during the average two-year economic downturn and through a two-year recovery period. This four-year funding target was funded as part of the FY16 budget. The County also has a strategic plan for our Information Technology department that we hope to begin implementing in the near future. Legislative Impacts Legislation was introduced and passed at the State level, in FY14, reestablishing the County Assistance Fund which provides lottery revenues to the counties. Coconino County received additional revenue of $550,038 in FY15 and FY16. This funding is subject to loss through further legislative action. In FY15 the Legislature passed a measure which eliminated County Assistance Funding from 3 additional counties, and Coconino County is in the next level of counties which could see elimination of funding. 9 Legislation was passed at the State level, in FY15, which requires all counties to provide funds to support the operations of the Arizona Department of Revenue (ADOR) and Arizona Department of Juvenile Corrections (ADJC). The impact of this legislation, in FY16, required the County to fund ADOR in the amount of $141,935 and ADJC in the amount of $ 252,400. Compensation plan The Board approved a 1.5% compression adjustment which was implemented in FY16, in addition to continuing the budgeted funding of a 2.5% merit increase for County staff. Coconino County continued innovative one-time monetary and non-monetary compensation programs, such as, the Personal Day Purchase Program (a type of voluntary furlough), as well as a Vacation Sell Back Program. A new employee benefit program in FY16, funded by the Board, is a Tuition Reimbursement Program. Wellness program Coconino County, as a partner of the NAPEBT, implemented a Wellness Incentive Program in FY13 and continued to expand and grow the program with much success through FY16. The program provides a monetary incentive to encourage employees to participate in a proactive health screening assessment and to live healthy lifestyles. The results are healthy employees that lead more fulfilling lives and a reduction in targeted catastrophic illnesses that drive health claims experience, which keep overall health care costs lower. During FY16 NAPEBT initiated the Vera on-site model health Clinic. Vera will provide more efficient health care for NAPEBT employees, reduce time away from work, provide access to primary care at reduced co-pays with extended hours and incorporates wellness and chronic disease management. Criminal Justice Coordinating Council (CJCC) The purpose of the CJCC is to study the criminal justice systems in the region, review opportunities to collaborate, identify areas for improvement and formulate policy, plans and programs for change to create efficiencies within our criminal justice system. Its mission is to communicate and present planning, financial, operational, managerial, and programmatic recommendations to the agencies represented on the Council. The Council is committed to providing the coordinated leadership necessary to establish cohesive public policies which are based on research, evaluation and monitoring of policy decisions and program implementations. There are currently nineteen members of the council from multiple jurisdictions within the region. The consensus of these members is required for decisions and recommendations. The direction and mission of the CJCC has been clear and the partners are motivated to make improvements to the system. The CJCC has developed a system performance tool to identify changes to performance criteria. This helps to identify changes early in the process in order to analyze and understand what impacts occur throughout the system. In addition, the County’s Chief Health Officer was added to the Executive Committee as the impacts for those dealing with behavioral health problems are having an increasing impact on criminal justice systems in Coconino County and across the country. 10 Other Initiatives Coconino County completed intergovernmental agreements with municipalities for Court Services in Tusayan and Williams. This allows the Justice of the Peace to fill the duties of Town Magistrate and leverage the investment of support staff, one-stop court services for citizens and delivery of services at reduced costs for taxpayers. Other Single Audit The independent audit of the financial statements of the County included the federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report on the audited government’s internal controls and compliance with legal requirements in addition to the fair presentation of the financial statements. This “Single Audit” puts special emphasis on internal controls and compliance with legal requirements involving the administration of federal awards. These reports are available in the County’s separately issued Single Audit report. Expenditure Limitation Arizona voters approved a proposition amending the state constitution in 1980 that established expenditure limitations for local governments, including Coconino County. The County has not exceeded the limitation. The County has accumulated expenditure limit carryforwards from prior years when actual expenditures were less than the limit and used some of these this year when expenditures would otherwise exceed the limit for this year. The County is required by state statute to prepare an Annual Expenditure Limitation Report (AELR), in conjunction with the required annual financial statements. The AELR must be audited and an opinion rendered on whether the AELR presents fairly, in all material respects, the information required by the Uniform Expenditure Reporting System. This report is available in the County’s separately issued Annual Expenditure Limitation Report. Awards Coconino County has received The Government Finance Officers Association of the United States and Canada (GFOA) Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report for fiscal years 2009, 2010, 2011, 2012, 2014, and 2015. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements. In addition, Coconino County has received the GFOA’s Distinguished Budget Presentation Award for its annual budget for fiscal years 2001 through 2015. In order to qualify for the award the County’s budget had to be judged proficient as a policy document, a financial plan, an operations guide, and a communication device. 11 Acknowledgments Preparation of this report could not be accomplished without the dedicated service of the staff of the County’s Finance Department, the assistance of personnel in the various departments, and the assistance of Arizona Office of the Auditor General. We also wish to recognize that preparation of this report could not be accomplished without the interest and support of the Board of Supervisors and their continued commitment to professional and fiscally responsible financial management and planning. Respectfully submitted, 12 13 COCONINO COUNTY Organizational Chart CITIZENS OF COCONINO COUNTY JUDICIARY SUPERIOR COURT Court Administration Division I Division II Division III/Drug Court Division IV Division V Division VI Clerk of Superior Court Adult Probation JUVENILE COURT Juvenile Division Juvenile Probation JUSTICE COURTS Court Administration Flagstaff Fredonia Page Williams CONSTABLE COUNTY ATTORNEY BOARD OF SUPERVISORS Districts 1 2 3 4 5 CLERK OF THE BOARD ELECTED OFFICIALS Assessor Treasurer Attorney Recorder Sheriff Superintendent of Schools Board Assistants COUNTY MANAGER DEPUTY COUNTY MANAGER DEPUTY COUNTY MANAGER Public Defender Legal Defender Finance Facilities Management Community Services Community Development Governmental Relations Human Resources Public Information Officer 14 Emergency Management Public Health Services District Public Works Career Center Parks and Recreation Information Technology COCONINO COUNTY County Officials BOARD OF SUPERVISORS District 1 .......................................................................................................................................................... Art Babbott District 2 ...........................................................................................................Elizabeth C. Archuleta, Vice Chairperson District 3 ................................................................................................................................................ Matthew G. Ryan District 4 .................................................................................................................................................... Mandy Metzger District 5 ................................................................................................................................... Lena Fowler, Chairperson County Manager ............................................................................................................................. Cynthia Seelhammer Deputy County Manager ................................................................................................................................. Neal Young Deputy County Manager .......................................................................................................................... Mike Townsend Clerk of the Board ................................................................................................................................... Wendy Escoffier ELECTED OFFICIALS Clerk of the Superior Court ......................................................................................................................... Valerie Wyant Constable ...................................................................................................................................................Darrin Womble County Assessor ........................................................................................................................................... Chris Mazon County Attorney ....................................................................................................................................David W. Rozema County Recorder .......................................................................................................................................... Patty Hansen County Sheriff ............................................................................................................................................... William Pribil County Superintendent of Schools .......................................................................................................Risha VanderWey County Treasurer ....................................................................................................................................... Sarah Benatar Justice of the Peace Flagstaff .......................................................................................................... Howard Grodman Fredonia .............................................................................................................. Mark R. Baron Page .............................................................................................................. Donald G. Roberts Williams .......................................................................................................... Robert Krombeen Superior Court Division I ........................................................................................................... Jacqueline Hatch Division II ................................................................................................................. Dan Slayton Division III/Drug Court ................................................................. Mark Moran, Presiding Judge Division IV ............................................................................................... Elaine Fridlund-Horne Division V ............................................................................................. Cathleen Brown Nichols Division VI ................................................................................ Ted Reed, Judge Pro Tempore APPOINTED DEPARTMENT HEADS Adult Probation (Chief Probation Officer) ....................................................................................................Sarah Douthit 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 ....................................................................................................................................... Erika Philpot Finance ...........................................................................................................................................................Bonny Lynn Information Technology .......................................................................................................................... Kristopher Estes Juvenile Court Services ........................................................................................................................... Bryon Matsuda Legal Defender ....................................................................................................................................... Gary Pearlmutter Parks and Recreation ........................................................................................................................... Dustin Woodman Public Defender ............................................................................................................................................. Sandra Diehl Public Works ................................................................................................................... Lucinda Andreani/Mike Lopker Superior Court Juvenile Court Judge/Commissioner ...................................................................... Margaret McCullough 15 THIS PAGE BLANK 16 FINANCIAL SECTION 17 THIS PAGE BLANK 18 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, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 2910 NORTH 44 th STREET • SUITE 410 • PHOENIX, ARIZONA 19 85018 • (602) 553-0333 • FAX (602) 553-0051 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and aggregate remaining fund information of Coconino County as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with U.S. generally accepted accounting principles. Emphasis of matter As discussed in Note 1 to the financial statements, for the year ended June 30, 2016, the County adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application. Our opinions are not modified with respect to this matter. Other matters Required supplementary information U.S. generally accepted accounting principles require that the management’s discussion and analysis on pages 24 through 37, budgetary comparison schedules on pages 106 through 111, schedule of the County’s proportionate share of the net pension liability—cost-sharing pension plans on page 112, schedule of changes in the County’s net pension liability and related ratios—agent pension plans on pages 113 through 114, schedule of county pension contributions on pages 115 through 116, and schedule of agent retirement plans’ and Coconino County postemployment healthcare plans’ funding progress on page 118 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 management’s responsibility and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with U.S. generally accepted auditing standards. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 20 The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Compliance over the use of highway user revenue fund and other dedicated state transportation revenue monies In connection with our audit, nothing came to our attention that caused us to believe that the County failed to use highway user revenue fund monies the County received pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2, and any other dedicated state transportation revenues the County received solely for the authorized transportation purposes, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the County’s noncompliance with the use of highway user revenue fund monies and other dedicated state transportation revenues, insofar as they relate to accounting matters. The communication related to compliance over the use of highway user revenue fund and other dedicated state transportation revenue monies in the preceding paragraph is intended solely for the information and use of the members of the Arizona State Legislature, the Board of Supervisors, management, and other responsible parties within the County and is not intended to be and should not be used by anyone other than these specified parties. Other reporting required by Government Auditing Standards In accordance with Government Auditing Standards, we will issue our report on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters at a future date. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Debbie Davenport Auditor General December 22, 2016 21 THIS PAGE BLANK 22 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (REQUIRED SUPPLEMENTARY INFORMATION) 23 Coconino County Management's Discussion and Analysis June 30, 2016 Management’s Discussion and Analysis (MD&A) of the County’s financial performance provides an overview of the County’s financial activities for the fiscal year ended June 30, 2016. Please read it in conjunction with the transmittal letter on pages 3-12 and the County’s basic financial statements, which follow this section. FINANCIAL HIGHLIGHTS FOR FISCAL YEAR 2016     The assets and deferred outflows of resources of the County exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2016 by $140.54 million (net position). The unrestricted net deficit in the amount of $77.73 million consists of positive net position in the amount of $45.16 million that may be used to meet the government's ongoing obligations to citizens and creditors. The negative unrestricted net position in the amount of $122.89 million is primarily the result of the County’s unfunded pension and OPEB obligations. The increase in the County’s net position was $2.76 million in fiscal year 2016. At the close of fiscal year 2016, the County’s governmental funds reported combined ending fund balances of $96.66 million, a decrease of $2.00 million. The General Fund reported an unassigned fund balance of $28.96 million at the close of fiscal year 2016, an increase of $2.84 million. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. The County’s basic financial statements are comprised of three components: 1. 2. 3. Government-wide financial statements, Fund financial statements, and Notes to the financial statements. This report also contains other required supplementary information in addition to the basic financial statements. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private sector business. One of the most important questions asked about the County’s finances is, “Is the County as a whole better off or worse off as a result of this year’s activities?” The Statement of Net Position and the Statement of Activities report information about the County as a whole and about its activities in a way that helps answer this question. These statements include all non-fiduciary assets and liabilities using the accrual basis of accounting. 24 Coconino County Management's Discussion and Analysis June 30, 2016 The Statement of Net Position presents information on all of the County’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference reported as Net Position. Net Position = (Assets + Deferred Outflows of Resources) – (Liabilities + Deferred Inflows of Resources) When viewed over a period of time, increases and decreases in net position are a useful indicator of an improving or deteriorating County financial condition. In addition to this change, other financial and non-financial factors should be considered. The Statement of Activities presents information showing how the County’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying events giving rise to the change occur, regardless of the timing of related cash flow. Therefore, revenues and expenses are reported in these statements for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes, and expenses pertaining to earned but unused vacation and sick leave. All of the County’s basic services are considered to be governmental activities, including general government, health, welfare, public safety, highways and streets, culture and recreation, education, and sanitation. Sales taxes, property taxes, intergovernmental revenues and user fees finance most of these activities. The government-wide financial statements can be found on pages 41-43 of this report. Fund Financial Statements The fund financial statements provide detailed information about the most significant County funds – not the County as a whole. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Some funds are required to be established by State law or by bond covenants. However, the Board of Supervisors establishes other funds to help control and manage money for particular purposes or to show that legal responsibilities are being achieved for using certain taxes, grants and other money. All of the County’s funds can be divided into three categories: governmental, proprietary, and fiduciary. Governmental funds—Most of the County’s basic services are reported in governmental funds, which focus on near-term inflows and outflows of spendable resources and the balances of spendable resources available at year-end. These funds are reported using modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed, shortterm view of the County’s operations and the basic services it provides. Governmental fund information helps determine financial resources that can be spent in the near future to finance the County’s programs. 25 Coconino County Management's Discussion and Analysis June 30, 2016 Because the focus of the governmental funds is narrower than that of the government-wide statements, it is useful to compare the information presented for the governmental funds with similar information presented for the governmental activities in the government-wide financial statements. Reconciliations between governmental activities, as reported in the Statement of Net Position and the Statement of Activities, and the governmental funds, as reported in the fund financial statements, is provided to facilitate this comparison. The County maintains numerous individual governmental funds. Information is presented separately in the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Public Works/HURF Fund, Jail District Fund, Parks and Open Spaces Tax Projects Fund and Public Health Services District Fund, which are considered to be major funds. Data from the other nonmajor governmental funds are combined into a single aggregate presentation. Individual fund data for these nonmajor governmental funds are provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 44-50 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 51-53 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 54-55 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 58-104 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 Proportionate Share of the Net Pension Liability for Cost Sharing Plans, the Schedule of Changes in the County’s Net Pension Liability and Related Ratios for Agent Pension Plans, the Schedule of County Pension Contributions, and the Schedule of Agent Retirement Plans’ and Coconino County Postemployment Healthcare Plan's Funding Progress. Required supplementary information can be found on pages 106-119 of this report. 26 Coconino County Management's Discussion and Analysis June 30, 2016 GOVERNMENT-WIDE FINANCIAL ANALYSIS Statement of Net Position The Statement of Net Position presents the financial position of the County at the end of the fiscal year, including all assets and deferred outflows, all liabilities and deferred inflows. The following table summarizes the County’s assets and deferred outflows, liabilities and deferred inflows, and net position on June 30, 2016 and June 30, 2015. Net Position may serve over time as a useful indicator of a County’s financial position. Governmental Activities (in millions) 2016 2015 $109.04 $115.76 151.23 150.22 260.27 265.98 Current and other assets Capital assets Total assets Deferred outflows of resources 26.73 19.68 Current liabilities Long-term liabilities outstanding Total liabilities 10.40 128.94 139.34 12.43 123.05 135.48 7.12 12.40 Deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Total net position 150.90 67.37 (77.73) $ 140.54 149.87 74.28 (86.37) $ 137.78 The County’s net position from governmental activities at the end of the fiscal year was $140.54 million. The net position was relatively flat with a small increase of $2.76 million as recorded in the Statement of Activities. Deferred Outflows of Resources Deferred outflows of resources are consumptions of the County’s net position that are applicable to a future reporting period. In fiscal year 2015 the County implemented GASB Statement 68, Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date; an amendment of GASB Statement No. 68. Due to the implementation of the above mentioned GASBs, deferred outflows of resources increased $7.06 million compared to fiscal year 2015 which was $19.68 million (see Note 9 - PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS for more information). 27 Coconino County Management's Discussion and Analysis June 30, 2016 Total Liabilities Total liabilities increased $3.86 million compared to fiscal year 2015 due to the following: a decrease in due to other governments of $2.11 million, a decrease in accounts payable of $0.52 million, an increase in accrued payroll and employee benefits of $0.64 million, and an increase in long term liabilities of $5.89 million. The decrease in accounts payable is attributable to large Public Works projects completed over the summer of 2015. The decrease in due to other governments was the result of Forest Fee revenue received too late to expend prior to June 30, 2015. The increase in long term liabilities is attributable to future postemployment health benefit liability and net pension liability (see Note 5 – LONGTERM LIABILITIES). Deferred Inflows of Resources Deferred inflows of resources are an acquisition of net position by the County that are applicable to a future reporting period. In fiscal year 2015 the County implemented GASB Statement 68, Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27, and GASB Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date; an amendment of GASB Statement No. 68. Due to the implementation, in fiscal year 2015, of the above mentioned GASBs, deferred inflows of resources decreased $5.27 million compared to fiscal year 2015 which was $12.40 million (see Note 9 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS for more information). Net Investment in Capital Assets The County’s net investment in capital assets increased by $1.03 million in the current fiscal year, with total net investment in capital assets of $150.90 million. Capital assets include land, buildings, equipment, and infrastructure. These assets are used to provide services to citizens, but are not available for future spending. Restricted Net Position Expendable restricted net position includes resources in which the County is legally obligated to spend the resources in accordance with restrictions provided by external parties. The portion of the County’s net position which is subject to external restrictions is $67.37 million. The County’s restricted net position decreased by $6.91 million in the current fiscal year. This is mainly attributable to the use of Jail District Funds, previously restricted for construction of an additional pod, to make a substantial payment to reduce the PSPRS pension liability. Unrestricted Net Position Unrestricted net position is not subject to externally imposed stipulations; however, most of these resources have been designated for particular capital projects and for the County’s unfunded pension and OPEB obligations. The reported negative balance of the County’s net position, $77.73 million, is unrestricted and consists of, positive net position in the amount of $45.16 million that may be used to meet the government's ongoing obligations to citizens and creditors without constraints established by debt covenants or other legal requirements, and negative unrestricted net position in the amount of $122.89 million which 28 Coconino County Management's Discussion and Analysis June 30, 2016 is primarily the result of the County’s unfunded pension and OPEB obligations (see Note 9 PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS for more information). Total Net Position The County’s total net position from governmental activities at the end of the fiscal year was $140.54 million. The County’s total net position increased by $2.76 million compared to fiscal year 2015. The major cause of the increase is due to an increase in local and State sales tax revenues. Deferred Outflows of Resources & Deferred Inflows of Resources Deferred Outflows of Resources Deferred outflows of resources were new to the County’s Statement of Net Position for fiscal year 2015. This classification balance, although similar to “assets,” is set apart because these items do not meet the technical definition of being a County asset on the date of these financial statements. In other words, these amounts are not available to pay liabilities in the way assets are available. When all the recognition criteria are met, the deferred outflow of resources will become an expense/expenditure. Deferred outflow of resources being reported are related to the implementation of GASB Statement No. 68 and GASB Statement No. 71 for pension liability reporting. GASB 71 requires that employer contributions made during the fiscal year to the retirement system be reported as deferred outflows of resources. Consequently, a portion of the deferred outflows of resources reported are comprised of current year employer contributions to the retirement system. However, there are other deferred outflows of resources attributable to the various components that impact pension changes, and can include investment changes amortization, changes due to actuarial assumptions, and differences between expected or actual experience. Deferred Inflows of Resources Deferred inflows of resources are the counterpart to deferred outflows of resources on the Statement of Net Position. Deferred inflows of resources are not technically liabilities of the County as of the date of the financial statements. When all the recognition criteria are met, the deferred inflow of resources will become revenue or an increase to net position. Deferred inflows of resources being reported on the County’s Statement of Net Position are related to pensions and represent a net amount attributable to the various components that impact pension changes, and can include investment changes amortization, changes due to actuarial assumptions, and differences between expected or actual experience. 29 Coconino County Management's Discussion and Analysis June 30, 2016 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 2016 compared to the prior year. Governmental Activities (in millions) 2016 Revenues Program revenues: Charges for services $ 12.78 Operating grants and contributions 32.56 Capital grants and contributions 0.70 Total program revenue 46.04 General revenues: State shared revenue 24.58 Sales taxes 36.94 Property taxes 19.73 Grants and contributions not restricted to specific programs 2.82 Investment earnings 1.04 Gain on disposal of capital assets 0.35 Miscellaneous 0.09 Total general revenue 85.55 Total revenues 131.59 Program Expenses General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Interest on long-term debt Total program expenses Change in net position Net position - beginning Prior period adjustment Net position - beginning, as restated Net position - ending 30 33.87 40.95 21.81 2.24 13.18 4.25 7.17 5.34 0.02 128.83 2.76 137.78 137.78 $ 140.54 2015 $ 11.49 38.18 0.01 49.68 23.30 32.09 19.06 2.48 0.70 0.22 0.09 77.94 127.62 34.77 42.40 14.91 2.01 13.91 4.49 6.68 6.71 0.02 125.90 1.72 233.61 (97.55) 136.06 $ 137.78 Coconino County Management's Discussion and Analysis June 30, 2016 Overall program revenues decreased by $3.64 million in the current fiscal year. This decrease was from a reduction in operating grants and contributions of $5.62 million due primarily to the completion of large flood control projects, increase in charges for services of $1.29 million, and an increase in capital grants and contributions of $0.69 million in highway grants. Program expenses were relatively flat with a small increase of $2.93 million in the current fiscal year. Total general revenue increased by $7.61 million in fiscal year 2016. This was due in large part to increased State shared and local county sales tax collections of $6.13 million, increase in property tax collections of $0.67 million, an increase in investment earnings of $0.34 million due to investment market changes, and an increase in grants and contributions not restricted to specific programs of $0.34 million. State shared revenue increased $1.28 million due in part to the moderate rebound in taxable sales at the state level. Local county sales tax revenue increased by $4.85 million due in large part to the improving economy. Revenues by Source - Governmental Activities 2015/2016 Property taxes 15% Unrestricted Grants and contributions 2% Investment earnings 1% Charges for services 10% Capital grants and contributions 1% Miscellaneous 0% Sales taxes 28% State shared revenue 19% Gain on disposal of capital assets 0% Operating grants and contributions 24% 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, sales taxes are the largest single source of funds (28%), followed by operating grants and contributions (24%), and State shared revenue (19%). 31 Coconino County Management's Discussion and Analysis June 30, 2016 Public safety is the largest functional area in expense (32%), followed by general government (26%), highways and streets (17%) and public health services (10%). Program Revenues and Expenses for Governmental Activities Fiscal Year 2015-2016 (In thousands) $45,000 Expenses $40,000 Revenues $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 General Government expenses were relatively flat with a small decrease of $0.90 million in the current fiscal year. Highways and streets expenses increased to fund deferred road maintenance projects with the Road Maintenance Sales Tax passed by Coconino County voters in November 2014. Welfare expenses and education expenses decreased due to reduced grant expenses for Community Services, the Career Center, and in the Superintendent of Schools Office. The County uses credit cards to pay certain vendors for goods and services and for employee travel expenses. The County received a financial consideration resulting from credit card payments for the year ended June 30, 2016 in the amount of $65,746. 32 Coconino County Management's Discussion and Analysis June 30, 2016 FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS The County reported five major funds for this fiscal year – General Fund, Public Works/HURF, Jail District, Public Health Services District, and Parks and Open Spaces Tax Projects. At year-end the County’s governmental funds reported combined fund balances of $96.66 million, which is a decrease of $2.00 million from last year, or a decrease of 2.03%. Of the total, $95.49 million (98.79%) constitutes spendable fund balance. Revenues and expenditures for governmental functions overall increased by 6.49% and 10.48%, respectively. These increases were the result of an increase in local and State sales tax revenues, and on the expenditure side from the substantial payment made to reduce pension liability. Governmental fund expenditures exceeded governmental fund revenues by $2.39 million in the current fiscal year and the fund balance decreased by $2.00 million. The General Fund is the County’s primary operating fund. At the end of the current fiscal year the spendable fund balance of the General Fund was $28.96 million. Spendable fund balance represents 96.49% of the General Fund’s total fund balance. The General Fund’s fund balance increased by $2.37 million over fiscal year 2015. The Public Works/HURF Fund, fund balance decreased by $1.00 million in the current fiscal year. The decrease was from expenditures exceeding revenues. Many road maintenance projects which had been deferred for several years, were completed in FY16 from the Road Maintenance Sales Tax Revenue, and many vacant positions were filled. The Jail District Fund, fund balance decreased by $7.04 million in the current fiscal year. It decreased primarily due to a $10.00 million dollar transfer to the General Fund for payment to PSPRS to reduce the County’s unfunded pension liability. The Parks and Open Spaces Tax Projects Fund, fund balance decreased by $0.99 million in the current fiscal year. This decrease was due to completion of planned FY15 projects in FY16. The Public Health Services District Fund, fund balance increased by $0.67 million in the current fiscal year. The change in fund balance was primarily from the implementation of several cost saving measures, including closing the County Dental Clinic and replacing with dental care vouchers, and other staffing changes. 33 Coconino County Management's Discussion and Analysis June 30, 2016 General Fund Budgetary Highlights    The final budgeted expenditures for the General Fund at year-end were $2.00 million less than the original adopted budget. This change was primarily due to budget adjustments for new grants and construction projects. For the General Fund, actual expenditures were $10.58 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 flat with the original adopted budget. For the General Fund, actual revenues exceeded the final budget by $4.54 million. The increase was primarily due to significant increases in County Sales tax and State Shared Sales tax revenues. Capital Assets and Debt Administration Capital Assets (Note 4) During the current fiscal year, the County added $1.62 million to its buildings and other improvements inventory, and added to its machinery and equipment inventory by $2.27 million. The addition in machinery and equipment was to replace old, inefficient heavy equipment and vehicles which had been kept running, beyond expected life-cycle, awaiting the passage of the Road Maintenance Sales Tax. The County added $7.97 million to its infrastructure inventory. The increase in infrastructure inventory includes culverts for Turkey Trail and Bowstring Road, improvements to Koch Field Road and Pinewood Boulevard, and drainage improvements on lower Crisp Hill Road and South Paintbrush. Also added were additional improvements to Campbell Avenue. The County’s overall estimated value of capital asset inventory increased $1.01 million net of increases in depreciation (see Note 4 – CAPITAL ASSETS found on page 72 of this report). The following table reflects the changes in capital assets for the County for the fiscal year 2016 compared to fiscal year 2015. Governmental Activities (net of depreciation) (in millions) Land Buildings and other improvements Machinery and equipment Infrastructure Construction in progress Total 34 2016 2015 $ 40.84 50.52 7.35 50.58 1.94 $ 151.23 $ 40.85 51.28 5.13 45.71 7.25 $ 150.22 Coconino County Management's Discussion and Analysis June 30, 2016 Long-term Debt (Note 5) At the end of the current fiscal year the County had $260,000 in special assessment debt outstanding. The long-term liability for future postemployment health benefit (OPEB) liability has increased by $0.50 million to $6.83 million in the current year. This change is the result of $0.90 million in additional annual OPEB cost and only $0.40 million in actual contributions made during fiscal year 2016 (see Note 5 – LONG-TERM LIABILITIES found on page 73 of this report). ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS The County utilizes a Ten-Year Financial Plan, which is updated quarterly, to forecast the County’s financial future. The largest single revenue source is local and State shared sales taxes. Local and State shared sales taxes constitute approximately 45% of the County’s government-wide general revenues and approximately 67% of General Fund revenues. This makes the County’s revenues sensitive to both improvements and downturns in the economy. County staff incorporated historical financial trends, and local, national and global economic trends into the County’s fiscal 2016 budget. State shared sales tax and County sales tax revenues stabilized in fiscal year 2012 and are now above the prerecession measurement year of fiscal year 2007 levels; State shared sales tax exceeds the fiscal year 2007 level by 15.9% and County sales tax is 14.0% above the fiscal year 2007 level. The key elements of the fiscal year 2016 budget are based on the assumption that economic recovery began in fiscal year 2011, and we are now showing recovery in our state revenues. The county continues to see lower levels in federal and state grant revenue, and uncertainty in federal payments for Payments In Lieu of Taxes and the Secure Rural Schools Act. The county established the following Financial Planning Milestones in the fiscal year 2016 budget:      Align “high probability of receipt” revenue types with recurring expenditures. Allocate budgeted receipts above recessionary revenue levels to one-time or nonmission-critical expenditures. Plan adequate reserves for revenue smoothing and an emergency reserve, to allow for unknown and unplanned events. Provide adequate compensation to retain trained and experienced staff, who will efficiently and effectively deliver services. Strategically plan for long-term facility and technology resources to have appropriate work space and tools available for staff. In developing the fiscal year 2016 budget, major areas of concern were:  Impacts from the State shifting costs to the County, while reducing County revenue allocations to subsidize the State budget deficit. For FY16 new State cost shifts 35 Coconino County Management's Discussion and Analysis June 30, 2016        added more than $0.50 million impact, in addition to the over $4.00 million in continuing cost shifts from prior fiscal years. o The new shifts include;  Paying the State to operate the Arizona Department of Revenue for collecting county sales tax  Paying for the operating costs of the Arizona Department of Juvenile Corrections  Paying all the costs of the state-required Presidential Preference Election in 2016 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. Focus on Criminal Justice by back-filling reduced special revenue funds and lost State funding by using the General Fund to provide an excess of $0.30 million in one-time funding for the County Attorney and Public Defender. Focus on Public Safety by adding 6 new positions in the Jail District (4 in Flagstaff and 2 in Page) and approving a 2% market adjustment for Sheriff’s Officers and Jail Detention Officers, in addition to their pay plan step increases. The additional positions were recommended in a recent Jail study. The commitment to our employees in the form of appropriate compensation to the extent possible and avoiding the cost of increased turnover which decreases efficiency. A 2.5% merit increase, zero increase in health benefit premiums, and funding of a tuition reimbursement program are examples of support for employees. Continuing increases in pension costs that further constrict limited resources. Focus on holding health insurance costs well below national averages by expanding participation in the successful wellness program for employees, while considering other best practices. An on-site model health clinic, called the Vera Clinic, was opened in FY16 for use by all employees and dependents of agencies who are participants in the Northern Arizona Public Employee Benefit Trust (NAPEBT), of which Coconino County is a participating agency. The goal in opening the Vera Clinic is to create sustainable, long-term cost containment for health care of our employees. Addressing long-term deficits for the Public Health Services District (PHSD). This is being accomplished through programmatic changes, reductions in staffing (cutting 4.6 FTE), increases in revenue through user fees, and reorganization. A projected deficit of nearly $1.00 million has been reduced to $0.08 million. 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. 36 Coconino County Management's Discussion and Analysis June 30, 2016 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. 37 THIS PAGE BLANK 38 BASIC FINANCIAL STATEMENTS 39 THIS PAGE BLANK 40 Coconino County Statement of Net Position June 30, 2016 Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Road sales tax Jail District sales tax Accrued interest Due from other governments Inventories Prepaid items Capital assets, not being depreciated Capital assets, being depreciated, net Total assets Governmental Activities $ 90,311,693 602,590 30,209 681,771 270,182 153,644 1,618,011 2,679,956 172,990 12,161,394 184,126 170,541 42,783,144 108,446,084 260,266,335 Deferred Outflows of Resources Deferred outflows related to pensions Total deferred outflows of resources 26,733,586 26,733,586 Liabilities Accounts payable Accrued payroll and employee benefits Deposits held for others Unearned revenues Noncurrent liabilities Due within 1 year Due in more than 1 year Total liabilities 7,260,190 3,066,793 38,063 34,094 3,647,392 125,290,414 139,336,946 Deferred Inflows of Resources Deferred inflows related to pensions Total deferred inflows of resources 7,124,795 7,124,795 Net Position Net investment in capital assets Restricted for: Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Debt service Capital projects Other purposes Unrestricted Total net position 150,901,461 $ The accompanying notes are an integral part of these basic financial statements. 41 14,259,749 25,364,855 1,355,407 2,779,816 140,641 761,496 2,239,084 348,312 17,276,936 2,843,991 (77,733,568) 140,538,180 THIS PAGE BLANK 42 Coconino County Statement of Activities Year Ended June 30, 2016 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 Expenses 33,869,932 40,947,920 21,815,377 2,235,478 13,180,529 4,254,709 7,172,432 5,336,344 18,128 $ 128,830,849 Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions 5,751,943 3,159,188 72,866 1,348,145 1,143,207 123,744 810,926 373,206 1,949,408 5,686,093 13,180,607 296,727 3,786,316 1,994,181 95,611 5,569,238 $ 12,783,225 $ 32,558,181 General revenues Taxes: Property taxes, levied for general purposes Property taxes, levied for library Property taxes, levied for flood control Property taxes, levied for accommodation school Property taxes, levied for health services General county sales tax Road sales tax Jail District sales tax Parks and open spaces sales tax Excise tax Franchise tax Shared revenue - state sales tax Shared revenue - state vehicle license tax Grants and contributions not restricted to specific programs Investment earnings Gain on disposal of capital assets Miscellaneous Total general revenues Change in net position Net position, July 1, 2015 Net position, June 30, 2016 Net (Expenses) Revenues and Changes in Net Position Total $ 701,112 339 $ 701,451 $ (26,168,581) (32,102,639) (7,860,792) (590,267) (8,251,006) (2,136,784) (6,265,895) 606,100 (18,128) (82,787,992) 9,511,567 3,924,459 2,444,129 8 3,847,788 14,123,077 8,426,665 14,127,110 27,012 139,804 97,267 21,004,646 3,570,541 2,822,490 1,037,145 354,668 90,144 85,548,520 2,760,528 137,777,652 $ 140,538,180 The accompanying notes are an integral part of these basic financial statements. 43 Coconino County Balance Sheet Governmental Funds June 30, 2016 Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Road sales tax Jail District sales tax Accrued interest Advances to other funds Due from: Other funds Other governments Inventories Prepaid items Total assets General Fund Public Works/HURF Fund Jail District Fund $ 24,665,045 $ 20,366,951 $ 10,577,142 310,496 18,607 645 1,618,011 37,246 1,001,783 41,362 2,679,956 25,447 1,629,123 7,531,112 326 52,944 $ 35,246,682 177,195 1,951,095 78,787 327,285 1,667 $ 24,156,281 1,124 $ 13,690,386 $ $ Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $ 1,768,401 Accrued payroll and employee benefits 1,700,014 Advances from other funds Due to: Other funds 1,477,052 Deposits held for others 5,651 Unearned revenue 19,123 Total liabilities 4,970,241 Deferred Inflows of Resources Unavailable revenue - property taxes Unavailable revenue - special assessments Unavailable revenue - intergovernmental Unavailable revenue - other Total deferred inflows of resources 3,606,800 216,674 436,741 340,196 346,177 345,667 4,169,651 1,122,604 1,667 19,984,963 1,124 12,566,658 19,986,630 12,567,782 $ 24,156,281 $ 13,690,386 259,815 259,815 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 1,055,053 28,961,573 30,016,626 $ 35,246,682 The accompanying notes are an integral part of these basic financial statements. 44 Public Health Services District Fund Parks and Open Spaces Tax Projects Fund $ $ 1,974,219 13,916,289 Nonmajor Governmental Funds Total Governmental Funds $ 18,059,151 602,590 30,209 $ 89,558,797 602,590 30,209 230,390 159,637 153,644 681,771 236,598 153,644 1,618,011 2,679,956 171,771 1,001,783 140,885 57,709 $ $ 4,678 26,947 36,091 134,415 968,251 3,782 2,088,252 1,379,869 $ 13,947,018 37,561 $ 22,777,394 4,107,772 12,161,394 326 170,541 $ 113,175,163 $ 372,906 3,991 $ $ 77,245 3,357,402 205,964 219,913 151,709 577,586 376,897 118,748 118,748 $ 77,245 2,583,823 13,570,121 2,661,068 13,570,121 3,357,402 $ 13,947,018 779,741 352,273 1,001,783 7,170,553 2,833,061 1,001,783 2,130,276 32,412 14,971 4,311,456 4,450,881 38,063 34,094 15,528,435 189,239 153,644 256,270 10,210 609,363 567,802 153,644 256,270 10,210 987,926 37,561 19,057,814 (1,238,800) 17,856,575 $ 22,777,394 1,172,650 67,763,379 27,722,773 96,658,802 $ 113,175,163 45 THIS PAGE BLANK 46 Coconino County Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2016 Fund balances − total governmental funds $ 96,658,802 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. 150,327,400 Some receivables are not available to pay for current-period expenditures and, therefore, are reported as unavailable revenue in the funds. 987,926 Internal service fund is used by management to charge the costs of certain activities, such as automotive maintenance, to individual funds. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service fund are included in governmental activities in the Statement of Net Position. Long-term liabilities, including bonds payable, compensated absences payable, and claims and judgments payable, are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liabilities are not due and payable in the current period and, therefore, are not reported in the funds. 1,201,740 (12,836,031) (115,421,560) Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions Net position of governmental activities 26,680,145 (7,060,242) $ 140,538,180 The accompanying notes are an integral part of these basic financial statements. 47 Coconino County Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended June 30, 2016 Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Expenditures: Current: General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures General Fund Public Works/HURF Fund $ $ 9,498,577 14,360,222 Jail District Fund $ 8,426,665 1,135,405 1,351,348 28,885,641 2,142,798 298,660 245,964 188,357 58,106,972 2,425 20,472,203 29,113,447 24,945,723 451,477 22,422,188 14,127,110 25,974 11,732,298 6,592 278,249 190,258 527,292 219,294 14,000 39 15,077,993 13,863,593 28,619 1,179,379 1,489,745 458,272 57,666,662 Excess (deficiency) of revenues over expenditures 440,310 Other financing sources (uses): Capital lease agreement Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 90,011 3,300 11,213,384 (9,373,964) 1,932,731 Net change in fund balances 2,373,041 Fund balances, July 1, 2015 Fund balances, June 30, 2016 27,643,585 $ 30,016,626 The accompanying notes are an integral part of these basic financial statements. 48 22,422,188 13,863,593 (1,949,985) 1,214,400 352,249 772,160 (178,835) 945,574 2,587,635 (10,838,189) (8,250,554) (1,004,411) (7,036,154) 20,991,041 $ 19,986,630 19,603,936 $ 12,567,782 Public Health Services District Fund $ 3,839,304 5,897 Parks and Open Spaces Tax Projects Fund Nonmajor Governmental Funds Total Governmental Funds $ 6,363,869 5,682 57,851 4,650 536,294 16,873,350 3,624,490 257,775 307,838 1,248,510 29,280,309 $ 19,701,750 36,952,588 57,851 1,721,229 1,887,642 61,905,784 6,923,006 1,264,077 679,203 1,439,331 132,532,461 2,308,412 9,160,703 63,106 2,065,123 1,207,850 2,703,150 4,435,151 4,683,198 665,144 31,421,859 48,707,702 22,936,771 2,065,123 12,723,241 4,024,951 5,924,896 5,141,470 1,872,994 1,207,850 85,000 18,128 26,187,115 85,000 18,128 134,922,135 $ 27,012 555,200 4,224,237 621,834 23,678 111,401 186,421 9,381,551 213,433 737,683 12,694,622 142,422 13,574,727 (4,193,176) (994,417) 4,551 4,909,041 (49,885) 4,863,707 670,531 $ 1,990,537 2,661,068 (994,417) $ 14,564,538 13,570,121 3,093,194 (2,389,674) 1,235 3,223,994 (2,325,916) 899,313 90,011 361,335 22,706,214 (22,766,789) 390,771 3,992,507 (1,998,903) 13,864,068 $ 17,856,575 98,657,705 $ 96,658,802 49 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, 2016 Net change in fund balances − total governmental funds $ (1,998,903) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay Depreciation expense Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore, are not reported as expenditures in the governmental funds. Increase in compensated absences Decrease in claims and judgments Increase in future postemployment health benefits 7,414,846 (6,577,637) 837,209 (193,372) 45,790 (495,460) (643,042) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Debt incurred Principal repaid (90,011) 107,375 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. (1,305,959) County pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net position liability is measured a year before the County's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. County pension contribution 17,853,910 Pension expense (11,980,232) Internal service fund is 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 (19,819) $ The accompanying notes are an integral part of these basic financial statements. 50 2,760,528 Coconino County Statement of Net Position Proprietary Fund June 30, 2016 Assets Current assets: Cash and cash equivalents Receivables (net of allowances for uncollectibles): Accounts Accrued interest Due from other funds Inventories Total current assets Governmental Activities Internal Service Fund $ 752,896 33,584 1,219 343,883 183,800 1,315,382 Noncurrent assets: Capital assets, net of accumulated depreciation: Buildings, net Equipment, net Capital assets, net Total noncurrent assets 38,653 863,175 901,828 901,828 Total assets 2,217,210 Deferred Outflows of Resources Deferred outflows related to pensions Total deferred outflows of resources 53,441 53,441 Liabilities Current liabilities: Accounts payable Accrued payroll and employee benefits Due to other funds Total current liabilities 89,637 272,887 774 363,298 Noncurrent liabilities: Net pension liability Total noncurrent liabilities 641,060 641,060 Total liabilities 1,004,358 Deferred Inflows of Resources Deferred inflows related to pensions Total deferred inflows of resources 64,553 64,553 Net Position Net investment in capital assets Unrestricted Total net position $ The accompanying notes are an integral part of these basic financial statements. 51 901,828 299,912 1,201,740 Coconino County Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Fund Year Ended June 30, 2016 Governmental Activities Internal Service Fund Operating revenues: Charges for services Total operating revenues $ Operating expenses: Personal services Professional services Supplies Utilities Repairs and maintenance Travel Depreciation Total operating expenses 2,316,414 2,316,414 651,932 82,035 1,356,516 20,024 33,506 3,117 270,389 2,417,519 Operating Loss (101,105) Nonoperating revenues: Investment earnings Gain on disposal of capital assets Transfers from other funds Total nonoperating revenues 10,207 10,504 60,575 81,286 Decrease in net position (19,819) Total net position, July 1, 2015 1,221,559 Total net position, June 30, 2016 $ The accompanying notes are an integral part of these basic financial statements. 52 1,201,740 Coconino County Statement of Cash Flows Proprietary Fund Year Ended June 30, 2016 Governmental Activities- Internal Service Fund Cash flows from operating activities: Receipts from other funds for services provided Payments to suppliers and providers of goods and services Payments to employees Net cash provided by operating activities $ 2,312,271 (1,531,978) (627,313) 152,980 Cash flows from noncapital financing activities: Cash transfers from other funds Net cash provided by noncapital financing activities 60,575 60,575 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 13,075 (447,509) (434,434) Cash flows from investing activities: Interest received on investments Net increase in fair value of investments Net cash provided by investing activities 7,718 2,779 10,497 Net decrease in cash and cash equivalents (210,382) Cash and cash equivalents, July 1, 2015 963,278 Cash and cash equivalents, June 30, 2016 $ 752,896 Reconciliation of operating loss to net cash provided by operating activities: Operating loss $ (101,105) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 270,389 Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: Increase in: Due from other funds (30,254) Accrued payroll and employee benefits 32,914 Due to other funds 628 Net pension liability 25,009 Decrease in: Accounts receivable 25,483 Accounts payable (45,350) Inventories 8,570 Deferred outflows related to pensions 18,527 Deferred inflows related to pensions (51,831) Net cash provided by operating activities $ 152,980 The accompanying notes are an integral part of these basic financial statements. 53 Coconino County Statement of Fiduciary Net Position Fiduciary Funds June 30, 2016 Investment Trust Funds Assets Cash and cash equivalents Cash and investments held by trustee Interest and dividends receivable Total assets $ 122,298,508 Agency Funds $ 253,426 122,551,934 Liabilities Deposits held for others Due to other governments Total liabilities 2,773,090 $ Net Position Held in trust for investment trust participants $ 122,551,934 The accompanying notes are an integral part of these basic financial statements. 54 1,706,374 1,066,716 2,520,535 252,555 2,773,090 Coconino County Statement of Changes in Fiduciary Net Position Fiduciary Funds Year Ended June 30, 2016 Investment Trust Funds Additions: Contribution from participants Investment earnings: Interest and dividends Net increase in fair value of investments Total investment earnings Total additions $ 243,167,593 1,291,220 438,558 1,729,778 244,897,371 Deductions: Distributions to participants Total deductions 224,003,622 224,003,622 Change in net position 20,893,749 Net position, July 1, 2015 101,658,185 Net position, June 30, 2016 $ The accompanying notes are an integral part of these basic financial statements. 55 122,551,934 THIS PAGE BLANK 56 BASIC FINANCIAL STATEMENTS - NOTES 57 Coconino County Notes to Financial Statements June 30, 2016 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Coconino County’s accounting policies conform to generally accepted accounting principles applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB). For the year ended June 30, 2016, the County implemented the provisions of GASB Statement No. 72, Fair Value Measurement and Application and GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB Statement No. 72 establishes standards for measuring fair value and applying fair value to certain investments and disclosures related to all fair value measurements. GASB Statement No. 76 establishes the hierarchy of sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity with generally accepted accounting principles. A. Reporting Entity The County is a general purpose local government that is governed by a separately elected board of five county supervisors. The accompanying financial statements present the activities of the County (the primary government) and its component units. Component units are legally separate entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are so intertwined with the County that they are in substance part of the County’s operations. Therefore, data from these units is combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize they are legally separate from the County. Each blended component unit discussed below has a June 30 year-end. The County has no discretely presented component units. As the Coconino County Board of Supervisors serves as the Board of Directors of all special districts discussed below, it is able to significantly influence the programs, projects, activities, and level of services provided by the Districts; the Board also establishes policy, appoints management, exercises budgetary control and determines tax rates. Further, the Districts provide services almost entirely for the benefit of the County; therefore, the Districts are considered blended component units of the County. Separate financial statements for the Districts are not available. 58 Coconino County Notes to Financial Statements June 30, 2016 The following table describes the County’s component units: For Separate Reporting Financial Method Statements Component Unit Description; Criteria for Inclusion Coconino County Flood Control District A tax-levying district that provides flood Blended control systems; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Library District Provides and maintains library services Blended for the County’s residents; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Special Assessment Districts Constructs or improves roads, sidewalks, Blended curbs and gutters, and irrigation systems within the County; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Street Lighting Districts Operates and maintains street lighting in Blended areas outside local city jurisdictions; the County’s Board of Supervisors serves as the board of directors Not available Coconino County Jail District A tax-levying district that acquires, Blended constructs, operates, maintains, and finances county jails and jail systems; the County’s Board of Supervisors serves as the board of directors Not available Public Health Services District A tax-levying district that provides and Blended maintains health services for the County’s residents; the County’s Board of Supervisors serves as the board of directors Not available 59 Coconino County Notes to Financial Statements June 30, 2016 Related Organization: The Industrial Development Authority of Coconino County (Authority) is a legally separate entity that was created to assist in the financing of commercial activities, including a health care institution, residential real property for dwelling units located within the County, and industrial park facilities. The Authority fulfills its function through the issuance of tax exempt bonds. The County Board of Supervisors appoints the Authority’s Board of Directors, but cannot remove a member of the Authority’s Board at-will. The Authority’s operations are completely separate from the County and the County is not financially accountable for the Authority. Therefore, the financial activities of the Authority have not been included in the accompanying financial statements. B. Basis of Presentation The basic financial statements include both government-wide statements and fund financial statements. The government-wide statements focus on the County as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information’s usefulness. Government-wide statements – Provide information about the primary government (the County) and its component units. The statements include a statement of net position and a statement of activities. These statements report the financial activities of the overall government, except for fiduciary activities. Governmental activities generally are financed through taxes and intergovernmental revenues. A statement of activities presents a comparison between direct expenses and program revenues for each function of the County’s governmental activities. Direct expenses are those that are specifically associated with a program or function, and therefore, are clearly identifiable to a particular function. Program revenues include:  charges to customers or applicants for goods, services, or privileges provided,  operating grants and contributions, and  capital grants and contributions. Revenues that are not classified as program revenues, including internally dedicated resources and all taxes the County levies or imposes, are reported as general revenues. Generally, the effect of interfund activity has been eliminated from the government-wide financial statements to minimize the double-counting of internal activities. However, charges for interfund services provided and used are not eliminated if the prices approximate their external exchange values. 60 Coconino County Notes to Financial Statements June 30, 2016 Fund financial statements – Provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements are presented for the governmental, proprietary, and fiduciary fund categories. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Fiduciary funds are aggregated and reported by fund type. Proprietary fund revenues and expenses are classified as either operating or nonoperating. Operating revenues and expenses generally result from transactions associated with the fund’s principal activity. Accordingly, revenues, such as user charges in which each party receives and gives up essentially equal values are operating revenues. Other revenues, such as investment earnings, result from transactions in which the parties do not exchange equal values and are considered nonoperating revenues along with revenues generated by ancillary activities. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. The County reports the following major governmental funds: The General Fund is the County’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Public Works/HURF Fund is a special revenue fund used to account for highway user fees restricted to the construction, repair, and maintenance of county roads that are funded primarily by a State-shared fuel tax and a County Road Maintenance Sales Tax. The Jail District Fund is a special revenue fund used to account for jail operations and jail capital improvements that are funded by a one-half cent sales tax. The Public Health Services District Fund is a special revenue fund used to account for health services for County residents that are funded by a $0.2500 per $100 of assessed valuation property tax, grants and contributions, and charges for services. The Parks and Open Spaces Tax Projects Fund is a capital projects 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. Collections from the one-eighth cent sales tax ceased after September 2014. The County also reports the following fund types: The internal service fund accounts for automotive maintenance and operation provided to the County’s departments or to other governments on a cost-reimbursement basis. The investment trust funds account for pooled and non-pooled assets held and invested by the County Treasurer on behalf of other governmental entities. 61 Coconino County Notes to Financial Statements June 30, 2016 The agency fund accounts for assets held by the County as an agent for the State and various local governments, and for property taxes collected and distributed to the State, local school districts, community college districts, and special districts. C. Basis of Accounting The government-wide, proprietary fund, and fiduciary fund financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. The agency funds are custodial in nature and do not have a measurement focus but utilize the accrual basis of accounting for reporting its assets and liabilities. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Property taxes are recognized as revenue in the year for which they are levied. Grants and donations are recognized as revenue as soon as all eligibility requirements the provider imposed have been met. Under the terms of grant agreements, the County funds certain programs by a combination of grants and general revenues. Therefore, when program expenses are incurred, there are both restricted and unrestricted resources available to finance the program. The County applies grant resources to such programs before using general revenues. Governmental funds in the fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when they become both measurable and available. The County considers all revenues reported in the governmental funds to be available if the revenues are collected within 60 days after year-end. Tax revenues collected within 60 days after year-end are accrued as the County had a claim to those revenues at year-end. Other revenues, including grants from federal and state governments, are considered available if collected within 90 days if the County has a claim to the revenues, and the amount is measurable and available to pay liabilities of the current period. The County’s major revenue sources that are subject to accrual are state-shared sales taxes and fuel taxes, county sales taxes, property taxes, and grants from the federal and state governments. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they are due and payable. General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of general long-term debt and acquisitions under capital lease agreements are reported as other financing sources. D. Cash and Investments For the statement of cash flows, the County’s cash and cash equivalents are considered to be cash on hand, demand deposits, cash on deposit with the County Treasurer, highly liquid investments with a maturity of three months or less when purchased, and investments that may be called by the Treasurer at any time without penalty. 62 Coconino County Notes to Financial Statements June 30, 2016 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 that are not in the County Treasurer's investment pool are stated at amortized cost. Tuba City Unified School District bonds are stated at amortized cost. All other investments are stated at fair value. E. Inventories Inventories in the government-wide and the proprietary fund’s financial statements are recorded as assets when purchased and expensed when consumed. These inventories are stated at cost using the first-in, first-out, and moving weighted average methods of valuation for the government-wide financial statements, and the weighted average method of valuation for the proprietary fund’s financial statement. The County accounts for its inventories in the governmental funds using the consumption method. Inventories of the governmental funds are recorded as assets when purchased and expensed when consumed. Amounts on hand at year-end are shown on the balance sheet as an asset 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, firstout 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 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. 63 Coconino County Notes to Financial Statements June 30, 2016 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 acquisition value. Capitalization thresholds (the dollar values above which asset acquisitions are added to the capital asset accounts), depreciation methods, and estimated useful lives of capital assets reported in the government-wide and proprietary fund’s statements are as follows: Capitalization Threshold Land All Construction in progress $5,000 Buildings and other improvements 5,000 Machinery and equipment 5,000 Infrastructure 5,000 Depreciation Method Estimated Useful Life N/A N/A Straight-Line Straight-Line Straight-Line N/A N/A 5-50 Years 3-40 Years 7-50 Years I. Deferred Outflows and Inflows of Resources The statement of net position and balance sheet include separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources represent a consumption of net position that applies to future periods that will be recognized as an expense or expenditure in future periods. Deferred inflows of resources represent an acquisition of net position or fund balance that applies to future periods and will be recognized as a revenue in future periods. J. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. K. Fund Balance Classifications The governmental funds’ fund balances are reported separately within classifications based on a hierarchy of the constraints placed on those resources’ use. The classifications are based on the relative strength of the constraints that control how the specific amounts can be spent. The classifications are nonspendable, restricted, and unrestricted, which includes committed, assigned, and unassigned fund balance classifications. 64 Coconino County Notes to Financial Statements June 30, 2016 The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form, such as inventories, or are legally or contractually required to be maintained intact. Restricted fund balances are those that have externally imposed restrictions on their usages by creditors (such as through debt covenants), grantors, contributors, or laws and regulations. The unrestricted fund balance category is comprised of committed, assigned, and unassigned resources. Committed fund balances are self-imposed limitations that the County’s Board of Supervisors approved, which is the highest level of decision-making authority within the County. Only the Board can remove or change the constraints placed on committed fund balances. Assigned fund balances are resources constrained by the County’s intent to be used for specific purposes, but that are neither restricted nor committed. The Board of Supervisors has authorized the County Manager to assign resources for a specific purpose. The unassigned fund balance is the residual classification for the General Fund and includes all spendable amounts not reported in the other classifications. Also, deficits in fund balances of the other governmental funds are reported as unassigned. When an expenditure is incurred that can be paid from either restricted or unrestricted fund balances, the County will use restricted fund balance first. The County has no formal policy as to its disbursing of unrestricted fund balances. L. Investment Earnings Investment earnings is composed of interest, dividends, and net changes in the fair value of applicable investments. M. Compensated Absences Compensated absences payable consist of vacation leave, compensatory time, and a calculated amount of sick leave employees earned based on services already rendered. Employees may accumulate up to 240 hours of vacation depending on years of service, but they forfeit any unused vacation hours in excess of the maximum amount. Upon terminating employment, the County pays all unused and unforfeited vacation benefits to employees. Any unused vacation hours in excess of the maximum amount at fiscal year-end is forfeited. Accordingly, vacation benefits are accrued as a liability in the government-wide and proprietary fund’s financial statements. Non-exempt, eligible employees may accumulate up to 80 hours of compensatory time. Accruals beyond 80 hours require approval of the Human Resources director. The Fair Labor Standards Act requires the payoff of any compensatory time balance above 240 hours for most non-exempt positions and 480 hours for public safety positions. This is done periodically throughout the year. Upon termination, all unused compensatory time is paid to 65 Coconino County Notes to Financial Statements June 30, 2016 the employee. Accordingly, compensatory time is accrued as a liability in the governmentwide and proprietary fund’s financial statements. Employees may accumulate up to 1,040 hours of sick leave. Generally, sick leave benefits provide for ordinary sick pay and are cumulative but employees forfeit them upon terminating employment. However, for employees who terminate with a minimum of 20 years of continuous service, sick leave benefits do vest. Such eligible terminating employees are compensated at the rate of one day for each four sick days accrued. Accordingly, this vested sick leave is accrued as a liability in the government-wide and proprietary fund’s financial statements. NOTE 2 – DEPOSITS AND INVESTMENTS Arizona Revised Statutes (A.R.S.) authorize the County Treasurer to invest public monies in securities and deposits with a maximum maturity of five years. All public monies shall be invested in eligible investments, including: the State Treasurer’s investment pool; obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations, or instrumentalities; specified state and local government bonds, notes, and other evidences of indebtedness including those of counties, incorporated cities or towns, school districts or special taxing districts, including registered warrants; interest-earning investments such as savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; commercial paper of prime quality issued by corporations organized and doing business in the United States; specified bonds, debentures, notes, and other evidences of indebtedness that are denominated in United States dollars and certain open-end and closed-end mutual funds, including exchange traded funds. In addition, the County Treasurer may invest trust funds in certain fixed income securities of corporations doing business in the United States or District of Columbia. Credit risk Statutes have the following requirements for credit risk: 1. Commercial paper must be of prime quality and be rated within the top two ratings by a nationally recognized rating agency. 2. Bonds, debentures, notes, and other evidences of indebtedness that are denominated in United States dollars must be rated “A” or better at the time of purchase by at least two nationally recognized rating agencies. 3. Fixed income securities must carry one of the two highest ratings by Moody’s Investors Service and Standard and Poor’s rating service. If only one of the above-mentioned services rates the security, it must carry the highest rating of that service. 66 Coconino County Notes to Financial Statements June 30, 2016 Custodial credit risk The Arizona State Treasurer’s Office administers a State Wide Pooled Collateral Program. The purpose of the Pooled Collateral Program is to ensure all taxpayer funds on deposit with any federally insured depository in excess of any insurance is backed with 102% of eligible collateral and provide an efficient means for eligible depositories to aggregate collateral for public deposits. Under the Pooled Collateral Program, each financial institution with public deposits pledges a pool of collateral against all of the public deposits it holds for the state and local governments of the State of Arizona except as provided by law. That collateral is pledged to the pooled collateral administrator who is responsible for monitoring the collateral on behalf of all public depositors. The Pooled Collateral Administrator (“Administrator”) is established in the Arizona State Treasurer’s Office and may adopt and enforce policies and procedures as necessary to carry out its duties pursuant to A.R.S. §351202 et seq. The Administrator is responsible for ensuring that eligible depositories have posted 102% collateral for each public depositor in excess of any federally insured deposits. Coconino County’s deposits are covered under the State Wide Pooled Collateral Program. Concentration of credit risk Statutes do not include any requirements for concentration of credit risk. Interest rate risk Statutes require that public monies invested in securities and deposits have a maximum maturity of 5 years. The maximum maturity for investments in repurchase agreements is 180 days. Foreign currency risk Statutes do not allow foreign investments unless the investment is denominated in United States dollars. Deposits – At June 30, 2016, the carrying amount of the County’s deposits was $40,311,383 and the bank balance was $46,810,066. The County does not have a formal policy with respect to custodial credit risk. The County adheres to the custodial credit risk requirements in Statutes. 67 Coconino County Notes to Financial Statements June 30, 2016 Investments – The County’s investments at June 30, 2016, categorized within the fair value hierarchy established by generally accepted accounting principles, were as follows: Fair value measurement using Quoted prices in Significant Significant active markets other unobservable for identical observable inputs assets inputs Investment by fair value level U.S. agency securities Corporate bonds Commercial paper Municipal bonds Negotiable CDs Mutual funds-debt Mutual funds-equity Money market mutual funds Total investment by fair value level $ Amount 99,884,543 33,392,223 15,659,257 12,407,455 8,739,005 457,572 206,886 95,714 170,842,655 External investment pools measured at fair value State Treasurer's investment pool #7 Total investment measured at fair value $ 2,655,699 $ 2,655,699 Investments measured at amortized cost Municipal bonds Total investment measured at amortized cost $ 2,084,709 $ 2,084,709 $ 175,583,063 Total investments $ (Level 1) $ $ 457,572 206,886 95,714 760,172 (Level 2) (Level 3) $ 99,884,543 33,392,223 15,659,257 12,407,455 8,739,005 $ 170,082,483 Investments categorized as Level 1 are valued using prices quoted in active markets for those investments. The investments categorized as Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Investments in the State Treasurer’s investment pool are valued at the pool’s share price multiplied by the number of shares the County held. The fair value of a participant’s position in the pool approximates the value of that participant’s pool shares. The State Board of Investment provides oversight for the State Treasurer’s investment pools. Investments measured at amortized cost consist of school improvement bonds issued by the Tuba City Unified School District to the Coconino County Treasurer. 68 Coconino County Notes to Financial Statements June 30, 2016 Credit risk – The County Treasurer has a formal investment policy with respect to credit risk which mirrors A.R.S. 35-323. At June 30, 2016, credit risk for the County’s investments was as follows: Investment Type U.S. agency securities Rating Rating Agency Amount AAA Moody's $ 99,884,543 Corporate bonds A1 Moody's 14,180,082 Corporate bonds A2 Moody's 10,081,537 Negotiable CDs Unrated A1+ Not Applicable 8,739,005 Commercial paper Standard and Poor's 8,692,440 Moody's 6,966,817 Corporate bonds A1 Baa1 Moody's 5,566,580 Municipal bonds AAA Moody's 4,416,994 Municipal bonds AA- Standard and Poor's 3,887,798 Municipal bonds Unrated Unrated Not Applicable 3,618,251 Not Applicable 2,655,699 Corporate bonds AAA Moody's 1,018,600 Corporate bonds A+ A Standard and Poor's 1,001,050 Corporate bonds Standard and Poor's 998,220 Municipal bonds AA Standard and Poor's 990,713 Municipal bonds A+ Standard and Poor's 464,028 Municipal bonds A Standard and Poor's 408,627 Municipal bonds AA+ Standard and Poor's 402,762 Not Applicable 273,092 Municipal bonds Unrated Aa3 Moody's 252,983 Corporate bonds Aa1 Moody's 200,492 Corporate bonds Aa3 Unrated Moody's 200,446 Not Applicable 184,480 A3 Moody's 100,000 Commercial paper State Treasurer's investment pool #7 Mutual funds-debt Mutual funds-debt Corporate bonds Money market mutual funds Aaa-mf Moody's 95,714 Municipal bonds Aa2 Moody's 50,008 Corporate bonds Aa2 Moody's 45,216 $ 175,376,177 Custodial credit risk – for an investment, custodial credit risk is the risk that, in the event of the counterparty’s failure, the County will not be able to recover the value of its investments or collateral securities that are in an outside party’s possession. The County does not have a formal policy with respect to custodial credit risk. 69 Coconino County Notes to Financial Statements June 30, 2016 Concentration of credit risk – The County Treasurer has a formal policy with respect to concentration of credit risk. The policy allows more than 5% of the portfolio from any one issuer, with the exception of a corporate issuer. Corporate bonds in total shall not exceed 20% of the entire portfolio and no one corporate issuer shall exceed 5% of the entire portfolio. The County had investments at June 30, 2016, of five percent or more in Federal Home Loan Bank, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation. These investments were 15.68%, 25.06%, and 12.66%, respectively, of the County’s total investments. Interest rate risk – The County Treasurer has a formal policy with respect to interest rate risk, acknowledging that in a rising rate environment investments may have to be held to maturity rather than incur a loss of principle in a net trade situation. Diversification in the portfolio can be used to reduce the adverse effect of rising rates. At June 30, 2016, the County had the following investments in debt securities: Investment Type U.S. agency securities Corporate bonds Negotiable CDs Commercial paper Municipal bonds Money market mutual funds State Treasurer's investment pool #7 Mutual funds-debt Mutual funds-debt 70 Amount 99,884,543 33,392,223 8,739,005 15,659,257 14,492,164 95,714 2,655,699 273,092 184,480 $ 175,376,177 Weighted Average Maturity in Years 2.672 1.709 1.418 0.304 3.069 0.066 0.760 6.600 8.400 Coconino County Notes to Financial Statements June 30, 2016 A reconciliation of cash, deposits, and investments to amounts shown on the Statements of Net Position follows: Cash, deposits, and investments: Cash on hand Amount of deposits Amount of investments Total Statement of Net Position: Cash and cash equivalents Investments Cash and investments held by trustee(s) Total $ 121,644 40,311,383 175,583,063 $216,016,090 Governmental Activities Investment Trust Funds Agency Funds $ 90,311,693 602,590 $ 122,298,508 $ 1,706,374 $214,316,575 602,590 1,066,716 1,096,925 $2,773,090 $216,016,090 30,209 $ 90,944,492 $122,298,508 Total NOTE 3 – RECEIVABLES Due from other governments – Amounts due from other governments at June 30, 2016, include $3,618,367 and $1,810,476 in state-shared revenue from sales taxes and fuel taxes, respectively; $259,053 from the State of Arizona for state vehicle license tax; $2,679,725 in county sales tax; $1,360,625 in grants from the federal government; $695,905 in grants from various state agencies; and $3,429 in reimbursements from the Arizona Department of Emergency Management. The remaining balance of $1,733,814 is composed of miscellaneous receivables from federal, state, and local government. 71 Coconino County Notes to Financial Statements June 30, 2016 NOTE 4 – CAPITAL ASSETS Capital asset activity for the year ended June 30, 2016, was as follows: Governmental activities Capital assets not being depreciated: Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated: Buildings and other improvements Machinery and equipment Infrastructure Total Less accumulated depreciation for: Buildings and other improvements Machinery and equipment Infrastructure Total Total capital assets being depreciated, net Governmental activities capital assets, net Balance July 1, 2015 $ 40,845,535 7,252,539 48,098,074 Increases $ Decreases 3,478,391 3,478,391 89,774,434 35,209,276 104,512,147 229,495,857 1,617,956 3,602,035 7,974,464 13,194,455 38,492,677 30,077,735 58,806,049 127,376,461 102,119,396 $ 150,217,470 2,383,419 1,362,603 3,102,004 6,848,026 6,346,429 $ 9,824,820 $ 8,793,321 8,793,321 1,332,151 1,332,151 1,312,410 1,312,410 19,741 $ 8,813,062 Balance June 30, 2016 $ 40,845,535 1,937,609 42,783,144 91,392,390 37,479,160 112,486,611 241,358,161 40,876,096 30,127,928 61,908,053 132,912,077 108,446,084 $ 151,229,228 Depreciation expense was charged to functions as follows: Governmental activities: General government Public safety Highways and streets Sanitation Health Welfare Culture and recreation Education Internal service fund $ Total governmental activities depreciation expense 881,999 1,243,635 3,250,837 199,827 115,519 57,784 728,575 99,461 270,389 $ 6,848,026 Construction and Other Significant Commitments – The County had major contractual commitments related to various capital projects at June 30, 2016, for the repair and construction of a wastewater project and facilities upgrades. At June 30, 2016, the County had spent $1,501,113 on these projects and had remaining contractual commitments with contractors totaling $479,656. These projects are being financed by Flood Control property tax, highway user revenues, federal and state emergency management reimbursements, and state grants. 72 Coconino County Notes to Financial Statements June 30, 2016 NOTE 5 – LONG-TERM LIABILITIES The following schedule details the County’s long-term liability and obligation activity for the year ended June 30, 2016: Governmental Activities Balance July 1, 2015 Additions Reductions Balance June 30, 2016 Due within 1 year $ $ $ Bonds payable: Special assessment bonds with governmental commitment Total bonds payable Capital lease payable Net pension liability (Note 9) Compensated absences payable Claims and judgments payable Future postemployment health benefit liability (Note 9) Total Governmental activities long-term liabilities $ 345,131 345,131 $ 85,131 85,131 260,000 260,000 110,838,473 4,840,736 692,902 90,011 33,731,088 3,474,879 156,144 22,244 28,506,941 3,246,889 201,935 67,767 116,062,620 5,068,726 647,111 6,331,584 895,123 395,125 6,831,582 $ 123,048,826 $ 38,347,245 $ 32,458,265 $ 128,937,806 89,000 89,000 29,869 3,394,113 134,410 $ 3,647,392 Special Assessment Bonds – Special assessment bonds are secured by pledges of revenues from special assessments levied against the benefiting property owners. Proceeds from special assessment bonds are used for improvements such as paving, street lighting, and sewers. The special assessment districts pledged these assessments to repay the principal amount of $795,000 in special assessment debt. Payment made by the assessed property owners are 100 percent pledged to pay the scheduled principal and interest payments on special assessment bonds. In the event of default by the property owner, the lien created by the assessment is sold at public auction and the proceeds are used to offset the default assessment. At June 30, 2016, future pledged revenues through final maturity at July 1, 2019 totaled $286,850 consisting of $260,000 for principal and $26,850 for interest. Future principal and interest payments are expected to require 100 percent of pledged special assessment revenues. Principal and interest paid for the current year and total current year special assessment revenues were $103,128 and $57,851, respectively. While there is no legal obligation for the County to further secure the special assessment debt of the districts below, the County has made a moral commitment to take steps necessary to prevent default. The following special assessment bonds were outstanding at June 30, 2016: Description Special assessment bonds with governmental commitment Original Amount $ 795,000 73 Maturity Date Interest Rates Outstanding Principal July 1, 2019 4.90-5.65% $ 260,000 Coconino County Notes to Financial Statements June 30, 2016 The following schedule details debt service requirements to maturity for the County’s special assessment bonds payable at June 30, 2016: Year Ending June 30 2017 2018 2019 Total Governmental Activities Special Assessment Bonds Principal Interest 89,000 13,700 94,000 9,039 77,000 4,111 $ 260,000 $ 26,850 Capital Lease – The County has acquired equipment under the provisions of a long-term lease agreement classified as a capital lease for accounting purposes because it provides for transfer of ownership by the end of the lease term. The following assets were acquired through capital lease: Machinery and equipment Less: accumulated depreciation Carrying value Governmental activities 70,762 17,691 53,071 The following schedule details debt service requirements to maturity for the County’s capital lease payable at June 30, 2016: Governmental activities Year ending June 30 2017 30,593 2018 30,593 2019 7,648 Total minimum lease payments 68,834 Less amount representing interest 1,067 Present value of net minimum lease payments 67,767 The present value of net minimum lease payments at June 30, 2016, of $67,767 exceeds the total capital assets of $53,071 because a portion of the assets acquired through the capital lease are for computer related equipment that is below the County’s capitalization threshold. 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), 74 Coconino County Notes to Financial Statements June 30, 2016 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 2016, the County paid for compensated absences as follows: 53.10 percent from the General Fund, 32.06 percent from major funds, and 14.84 percent from other funds. The County paid for claims and judgments from the General Fund. NOTE 6 – FUND BALANCE CLASSIFICATION OF GOVERNMENTAL FUNDS The fund balance classifications of the governmental funds as of June 30, 2016, were as follows: General Fund Fund balances: Nonspendable: Advances $ 1,001,783 Inventories 326 Prepaid items 52,944 Total nonspendable 1,055,053 Restricted for: Debt Service Highways and Streets Jail and Sheriff Culture and Recreation Health Capital Projects Education Sanitation Welfare Probation Superior Court Justice Courts Public and Legal Defenders County Attorney General Govt Services Total restricted Unassigned Total fund balances Public Works/HURF Fund $ Jail District Fund Public Health Parks and Services Open Spaces District Fund Tax Projects $ $ 1,667 1,667 19,984,963 1,124 1,124 $ 77,245 77,245 194,668 5,378,225 1,326,032 638,155 13,570,121 19,984,963 12,566,658 2,583,823 13,570,121 3,706,815 1,966,656 1,340,194 140,642 1,523,355 482,372 527,484 82,531 853,710 896,975 19,057,814 $19,986,630 $12,567,782 $ 2,661,068 $13,570,121 $17,856,575 28,961,573 $30,016,626 $ 37,561 37,561 12,566,658 2,583,823 Other Governmental Funds (1,238,800) 75 Total Governmental Funds $ 1,001,783 326 170,541 1,172,650 194,668 25,363,188 13,892,690 638,155 2,583,823 17,276,936 1,966,656 1,340,194 140,642 1,523,355 482,372 527,484 82,531 853,710 896,975 67,763,379 27,722,773 $96,658,802 Coconino County Notes to Financial Statements June 30, 2016 NOTE 7 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY At June 30, 2016, the following nonmajor governmental fund reported a deficit in fund balance. Fund Governmental Funds: Emergency Services Grants Flood Control District Fund Deficit $ 139,668 1,099,132 $ 1,238,800 The fund balance deficit for the Emergency Services Grants Fund resulted from operations during the year and is expected to be corrected during normal operations in fiscal year 2017. The Flood Control District expenditures exceeded revenue in FY16 in a planned effort to finalize flood control projects from recent major flooding incidents, including the Slide and Schultz Floods. In FY17 the Flood Control District will limit expenditures to project planning efforts for future fiscal year implementation. This will allow the annual Flood Control District property tax levy in the amount of $ 2,490,852 to cover the deficit and build a fund balance for future use. NOTE 8 – RISK MANAGEMENT The County is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. These risks of loss are accounted for and financed by the following described insurance coverage and internal risk management program. The County contracts with CopperPoint Mutual Insurance Company to meet Arizona statutory requirements on workers compensation coverage for its elected officials, employees, and volunteers. There is no deductible associated with this coverage and no loss limit per claim. The employer’s liability section of our workers’ compensation policy is insured with coverage limits at the $1,000,000 level. There have been no claims against our employer’s liability to date. The County also purchases coverage from insurers for property insurance, commercial general liability, public official errors and omissions liability, law enforcement liability, employment practices liability, employee benefits liability, automobile liability and physical damage, healthcare professional liability, cyber liability, environmental impairment liability, and non-owned aircraft liability. The County self-insures liability claims for the first $125,000 with the exception of a few specialty lines noted here after. The County self- insures environmental liability claims for the first $50,000 and healthcare professional liability for the first $100,000. There is a $25,000 deductible for cyber liability, and also a $25,000 76 Coconino County Notes to Financial Statements June 30, 2016 deductible for automobile physical damage. A self-insurance retention fund has been established for these losses. There is no self-insured retention or deductible on our nonowned aircraft liability policy. The County carries excess layers of liability with a combined limit of $30,000,000 over our basic individual $1,000,000 liability limits for commercial general liability, public official errors and omissions liability, law enforcement liability, employment practices liability, employee benefits liability, and automobile liability. We carry a separate $5,000,000 on professional healthcare liability, $2,000,000 on cyber liability, $1,000,000 on environmental impairment liability, and $5,000,000 on non- owned aircraft liability which are not included in our excess liability insurance coverage. For real property and business personal property damage coverage the County has a $25,000 deductible with blanket coverage up to the property values insured on a replacement cost basis on the special property form. This property insurance includes flood with a $5,000,000 sublimit and a $100,000 deductible for most properties. Two locations are listed with higher deductibles of $250,000 and $500,000 for flood insurance. Our property insurance also includes coverage for earthquake with a $5,000,000 sublimit and a $100,000 deductible. Crime coverage is carried at a limit of $1,000,000 with a $25,000 deductible. Settled claims have not exceeded commercial insurance coverage for any of the past three fiscal years. NOTE 9 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS The County contributes to the plans described below. The plans are component units of the State of Arizona. At June 30, 2016, the County reported the following aggregate amounts related to pensions for all plans to which it contributes: Statement of Net Position and Statement of Activities Governmental Activities Net pension liabilities $116,062,620 Deferred outflows of resources 26,733,586 Deferred inflows of resources 7,124,795 Pension expense 12,007,885 The County’s accrued payroll and employee benefits includes $52,643 of outstanding pension contribution amounts payable to all pension plans for the year ended June 30, 77 Coconino County Notes to Financial Statements June 30, 2016 2016. Also, the County reported $17,853,910 of pension contributions as expenditures in the governmental funds related to all pension plans to which it contributes. A. Arizona State Retirement System Plan description – County employees not covered by the other pension plans described below participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing, multiple-employer defined benefit pension plan, a cost-sharing, multipleemployer defined benefit health insurance premium benefit (OPEB) plan, and a costsharing, multiple-employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its financial statements and required supplementary information. The report is available on its website at www.azasrs.gov. Benefits provided – The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement benefits are calculated on the basis of age, average monthly compensation, and service credit as follows: ASRS Years of service and age required to receive benefit Retirement Initial membership date: Before July 1, 2011 On or after July 1, 2011 Sum of years and age equals 80 30 years, age 55 10 years, age 62 25 years, age 60 5 years, age 50* 10 years, age 62 any years, age 65 5 years, age 50* any years, age 65 Final average salary is based on Highest 36 consecutive months of last 120 months Highest 60 consecutive months of last 120 months Benefit percent per year of service 2.1% to 2.3% 2.1% to 2.3% *With actuarially reduced benefits. Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to automatic cost-of-living adjustments based on excess investment earning. Members with a membership date on or after September 13, 2013, are not eligible for costof-living adjustments. Survivor benefits are payable upon a member’s death. For retired members, the retirement benefit option chosen determines the survivor benefit. For all other members, the beneficiary is entitled to the member’s account balance that includes the member’s contributions and employer’s contributions, plus interest earned. 78 Coconino County Notes to Financial Statements June 30, 2016 Contributions – In accordance with state statutes, annual actuarial valuations determine active member and employer contribution requirements. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. For the year ended June 30, 2016, active ASRS members were required by statute to contribute at the actuarially determined rate of 11.47 percent (11.35 percent for retirement and 0.12 percent for long-term disability) of the members’ annual covered payroll, and the County was required by statute to contribute at the actuarially determined rate of 11.47 percent (10.85 percent for retirement, 0.50 percent for health insurance premium benefit, and 0.12 percent for long-term disability) of the active members’ annual covered payroll. In addition, the County was required by statute to contribute at the actuarially determined rate of 9.36 percent (9.17 percent for retirement, 0.13 percent for health insurance premium benefit, and 0.06 percent for long-term disability) of annual covered payroll of retired members who worked for the County in positions that would typically be filled by an employee who contributes to the ASRS. The County’s contributions to the pension plan for the year ended June 30, 2016, were $4,071,019. The County’s contributions for the current and 2 preceding years for OPEB, all of which were equal to the required contributions, were as follows: ASRS Year ended June 30 2016 2015 2014 Health Benefit Supplement Fund $ 187,605 212,883 214,717 Long-Term Disability Fund $ 45,025 43,298 85,887 During fiscal year 2016, the County paid for ASRS pension and OPEB contributions as follows: 54.9 percent from the General Fund, 32.0 percent from major funds, and 13.1 percent from other funds. Pension liability – At June 30, 2016, the County reported a liability of $61,051,275 for its proportionate share of the ASRS’ net pension liability. The net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was determined using update procedures to roll forward the total pension liability from an actuarial valuation as of June 30, 2014, to the measurement date of June 30, 2015. The County’s proportion of the net pension liability was based on the County’s actual contributions to the plan relative to the total of all participating employers’ contributions for the year ended June 30, 2015. The County’s proportion measured as of June 30, 2015, was 0.392 percent, which was a decrease of .005 from its proportion measured as of June 30, 2014. Pension expense and deferred outflows/inflows of resources – For the year ended June 30, 2016, the County recognized pension expense for ASRS of $2,691,574. At June 30, 2016, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 79 Coconino County Notes to Financial Statements June 30, 2016 ASRS Deferred Outflows of Resources Differences between expected and $ actual experience Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between county contributions and proportionate share of contributions County contributions subsequent to the measurement date Total $ 1,665,957 Deferred Inflows of Resources $ 3,199,148 1,956,558 23,168 4,071,019 5,760,144 1,036,900 $ 6,192,606 The $4,071,019 reported as deferred outflows of resources related to ASRS pensions resulting from county contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ASRS pensions will be recognized in pension expense as follows: Year ending June 30 2017 2018 2019 2020 $(1,892,350) (2,556,816) (1,466,704) 1,412,389 Actuarial Assumptions – The significant actuarial assumptions used to measure the total pension liability are as follows: ASRS Actuarial valuation date Actuarial roll forward date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent benefit increase Mortality rates June 30, 2014 June 30, 2015 Entry age normal 8% 3 - 6.75% 3% Included 1994 GAM Scale BB Actuarial assumptions used in the June 30, 2014, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2012. 80 Coconino County Notes to Financial Statements June 30, 2016 The long-term expected rate of return on ASRS pension plan investments was determined to be 8.79 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: ASRS Asset Class Equity Fixed income Real estate Multi-asset Commodities Total Long-Term Expected Arithmetic Real Target Allocation Rate of Return 58% 25% 10% 5% 2% 100% 6.79% 3.70% 4.25% 3.41% 3.93% Discount Rate – The discount rate used to measure the ASRS total pension liability was 8 percent, which is less than the long-term expected rate of return of 8.79 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually required rate under Arizona statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the County’s proportionate share of the ASRS net pension liability to changes in the discount rate – The following table presents the County’s proportionate share of the net pension liability calculated using the discount rate of 8 percent, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (7 percent) or 1 percentage point higher (9 percent) than the current rate: ASRS County’s proportionate share of the net pension liability 1% Decrease (7%) Current Discount Rate (8%) $ 79,998,035 $ 61,051,275 81 1% Increase (9%) $48,066,537 Coconino County Notes to Financial Statements June 30, 2016 Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report. B. Public Safety Personnel Retirement System and Corrections Officer Retirement Plan Plan descriptions – County sheriff employees who are regularly assigned hazardous duty participate in the Public Safety Personnel Retirement System (PSPRS). The PSPRS administers an agent multiple-employer defined benefit pension plan and an agent multipleemployer defined benefit health insurance premium benefit (OPEB) plan (agent plans). A seven-member board known as the Board of Trustees and the participating local boards govern the PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. County detention officers and Administrative Office of the Courts (AOC) probation, surveillance, and juvenile detention officers participate in the Corrections Officer Retirement Plan (CORP). The CORP administers an agent multiple-employer defined benefit pension plan and an agent multiple-employer defined benefit health insurance premium benefit (OPEB) plan for county detention officers (agent plans), and a cost-sharing multipleemployer defined benefit pension plan and a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan for AOC officers (cost-sharing plans). The PSPRS Board of Trustees and the participating local boards govern CORP according to the provisions of A.R.S. Title 38, Chapter 5, Article 6. The PSPRS issues a publicly available report that includes financial statements and required supplementary information for the PSPRS and CORP plans. The report is available on the PSPRS website at www.psprs.com. Benefits provided – The PSPRS and CORP provide retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits are calculated on the basis of age, average monthly compensation, and service credit as follows: PSPRS Retirement and Disability Years of service and age required to receive benefit Final average salary is based on Initial membership date: Before January 1, 2012 On or after January 1, 2012 20 years, any age 15 years, age 62 25 years, age 52.5 Highest 36 consecutive months of last 20 years Highest 60 consecutive months of last 20 years 82 Coconino County Notes to Financial Statements June 30, 2016 PSPRS Initial membership date: Before January 1, 2012 On or after January 1, 2012 Benefit percent Normal Retirement Accidental Disability Retirement Catastrophic Disability Retirement Ordinary Disability Retirement 50% less 2.0% for each year of credited service less than 20 years OR plus 2.0% to 2.5% for each year of credited service over 20 years, not to exceed 80% 2.5% per year of credited service, not to exceed 80% 50% or normal retirement, whichever is greater 90% for the first 60 months then reduced to either 62.5% or normal retirement, whichever is greater Normal retirement calculated with actual years of credited service or 20 years of credited service, whichever is greater, multiplied by years of credited service (not to exceed 20 years) divided by 20 Survivor Benefit Retired Members 80% to 100% of retired member’s pension benefit Active Members 80% to 100% of accidental disability retirement benefit or 100% of average monthly compensation if death was the result of injuries received on the job CORP Retirement and Disability Years of service and age required to receive benefit Final average salary is based on Initial membership date: Before January 1, 2012 On or after January 1, 2012 Sum of years and age equals 80 20 years, any age 10 years, age 62 25 years, age 52.5 10 years, age 62 Highest 36 consecutive months of last 10 years Highest 60 consecutive months of last 10 years Benefit percent Normal Retirement Accidental Disability Retirement 2.0% to 2.5% per year of credited service, not to exceed 80% 50% or normal retirement if more than 20 years of credited service 83 50% or normal retirement if more than 25 years of credited service Coconino County Notes to Financial Statements June 30, 2016 CORP Initial membership date: Before January 1, 2012 On or after January 1, 2012 Total and Permanent Disability Retirement 50% or normal retirement if more than 25 years of credited service Ordinary Disability Retirement 2.5% per year of credited service Survivor Benefit Retired Members 80% of retired member’s pension benefit Active Members 40% of average monthly compensation or 100% of average monthly compensation if death was the result of injuries received on the job. If there is no surviving spouse or eligible children, the beneficiary is entitled to 2 times the member’s contributions. Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on excess investment earning. In addition, from and after December 31, 2015, the Legislature may enact permanent one-time benefit increases after a Joint Legislative Budget Committee analysis of the increase’s effects on the plan. PSPRS also provides temporary disability benefits of 50 percent of the member’s compensation for up to 12 months. Employees covered by benefit terms – At June 30, 2016, the following employees were covered by the agent pension plans’ benefit terms: Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees Total PSPRS Sheriff CORP Detention 52 9 13 54 119 54 93 156 Contributions and annual OPEB cost – State statutes establish the pension contribution requirements for active PSPRS and CORP employees. In accordance with state statutes, annual actuarial valuations determine employer contribution requirements for PSPRS and CORP pension and health insurance premium benefits. The combined active member and employer contribution rates are expected to finance the costs of benefits employees earn during the year, with an additional amount to finance any unfunded accrued liability. Contributions rates for the year ended June 30, 2016, are indicated below. Rates are a percentage of active members’ annual covered payroll. 84 Coconino County Notes to Financial Statements June 30, 2016 Active members—Pension County Pension Health insurance premium benefit PSPRS Sheriff 11.65% CORP Detention 8.41% CORP AOC 8.41% 75.15% 0.72% 10.20% 0.22% 19.10% 0.85% In addition, the County was required by statute to contribute at the actuarially determined rate of 28.62 percent for the PSPRS of annual covered payroll of retired members who worked for the County in positions that would typically be filled by an employee who contributes to the PSPRS. For the agent plans, the County’s contributions to the pension plan and annual OPEB cost and contributions for the health insurance premium benefit for the year ended June 30, 2016, were: Pension Contributions made Health Insurance Premium Benefit Annual OPEB cost Contributions made PSPRS Sheriff $12,403,682 CORP Detention $378,425 23,029 23,029 8,162 8,162 PSPRS Contributions include a voluntary $10 million excess contribution to reduce the unfunded liability. Contributions to the CORP AOC pension plan for the year ended June 30, 2016, were $642,596. The County’s contributions for the current and 2 preceding years for the CORP AOC OPEB, all of which were equal to the required contributions, were as follows: CORP AOC Year ended June 30 2016 2015 2014 Health Insurance Fund $ 28,597 43,781 39,346 During fiscal year 2016, the County paid for PSPRS, CORP, and CORP AOC pension and OPEB contributions as follows: 93.0 percent from the General Fund, 3.0 percent from major funds, and 4.0 percent from other funds. 85 Coconino County Notes to Financial Statements June 30, 2016 Pension liability – At June 30, 2016, the County reported the following net pension liabilities: Net Pension Liability $30,388,556 2,448,767 7,590,997 PSPRS Sheriff CORP Detention CORP AOC (County’s proportionate share) The net pension liabilities were measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. In May 2016 voters approved Proposition 124 that authorized certain statutory adjustments to PSPRS’ automatic cost-of-living adjustments. The statutory adjustments change the basis for future cost-of-living adjustments from excess investment earnings to the change in the consumer price index, limited to a maximum annual increase of 2 percent. The change in the County’s net pension liability as a result of the statutory adjustments is not known. Pension actuarial assumptions – The significant actuarial assumptions used to measure the total pension liability are as follows: PSPRS and CORP – Pension Actuarial valuation date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent benefit increase Mortality rates June 30, 2015 Entry age normal 7.85% 4.0%–8.0% for PSPRS and 4.0%–7.25% for CORP 4.0% Included RP-2000 mortality table (adjusted by 105% for both males and females) Actuarial assumptions used in the June 30, 2015, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2011. The long-term expected rate of return on PSPRS and CORP pension plan investments was determined to be 7.85 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: 86 Coconino County Notes to Financial Statements June 30, 2016 PSPRS and CORP Asset Class Short term investments Absolute return Risk parity Fixed income Real assets GTAA Private equity Real estate Credit opportunities Non-U.S. equity U.S. equity Total Target Allocation 2% 5% 4% 7% 8% 10% 11% 10% 13% 14% 16% 100% Long-Term Expected Geometric Real Rate of Return 0.75% 4.11% 5.13% 2.92% 4.77% 4.38% 9.50% 4.48% 7.08% 8.25% 6.23% Pension discount rates – The discount rate used to measure the PSPRS and CORP total pension liabilities was 7.85 percent. The projection of cash flows used to determine the discount rates assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the actuarially determined contribution rate and the member rate. Based on those assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 87 Coconino County Notes to Financial Statements June 30, 2016 Changes in the Net Pension Liability PSPRS Sheriff Balances at June 30, 2015 Total Pension Liability (a) 39,892,490 Increase (Decrease) Plan Net Fiduciary Net Pension Position Liability (b) (a) – (b) 9,933,371 29,959,119 542,285 542,285 3,045,276 3,045,276 Changes for the year: Service cost Interest on the total pension liability Differences between expected and actual experience in the measurement of the pension liability Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balances at June 30, 2016 (519,453) (519,453) 1,798,480 451,605 360,105 (2,740,615) (2,740,615) 327,493 40,219,983 (9,163) 37,644 (101,944) 9,831,427 88 (1,798,480) (451,605) (360,105) 9,163 (37,644) 429,437 30,388,556 Coconino County Notes to Financial Statements June 30, 2016 CORP Detention Increase (Decrease) Total Plan Net Pension Fiduciary Net Pension Liability Position Liability (a) (b) (a) – (b) 8,748,409 6,557,432 2,190,977 Balances at June 30, 2015 Changes for the year: Service cost Interest on the total pension liability Differences between expected and actual experience in the measurement of the pension liability Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net changes Balances at June 30, 2016 486,259 694,602 486,259 694,602 (79,768) (79,768) 296,134 312,482 246,544 (286,223) (296,134) (312,482) (246,544) (286,223) (6,468) (5,389) 557,080 7,114,512 814,870 9,563,279 6,468 5,389 257,790 2,448,767 The County’s proportion of the CORP AOC net pension liability was based on the County’s actual contributions to the plan relative to the total of all participating counties’ actual contributions for the year ended June 30, 2015. The County’s proportion measured as of June 30, 2015 was 3.122 percent, which was a decrease of 0.113 from its proportion measured as of June 30, 2014. Sensitivity of the County’s net pension liability to changes in the discount rate – The following table presents the County’s net pension liabilities calculated using the current discount rate of 7.85 percent, as well as what the County’s net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.85 percent) or 1 percentage point higher (8.85 percent) than the current rate: 1% Decrease (6.85%) PSPRS Sheriff Net pension liability CORP Detention Net pension liability CORP AOC County’s proportionate share of the net pension liability Current discount rate (7.85%) $ 35,017,500 $ 1% Increase (8.85%) 30,388,556 $ 26,521,869 $ 3,870,626 $ 2,448,767 $ 1,291,735 $ 9,925,269 $ 7,590,997 $ 5,648,285 89 Coconino County Notes to Financial Statements June 30, 2016 Pension plan fiduciary net position – Detailed information about the pension plans’ fiduciary net position is available in the separately issued PSPRS and CORP financial reports. Pension expense – For the year ended June 30, 2016, the County recognized the following pension expense: Pension Expense $3,452,274 432,365 979,848 PSPRS Sheriff CORP Detention CORP AOC (County's proportionate share) Pension deferred outflows/inflows of resources – At June 30, 2016, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: PSPRS Sheriff Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments County contributions subsequent to the measurement date Total Deferred Outflows of Resources Deferred Inflows of Resources $ $ 406,194 $ 406,194 22,611 3,069,204 8,099 12,403,682 15,503,596 $ 90 Coconino County Notes to Financial Statements June 30, 2016 CORP Detention Differences between expected and actual experience Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments County contributions subsequent to the measurement date Total CORP AOC Deferred Outflows of Resources Deferred Inflows of Resources $ $ 65,025 $ 65,025 79,159 285,928 28,035 378,425 771,547 $ Deferred Outflows of Resources Differences between expected and actual experience $ Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between county contributions and proportionate share of contributions County contributions subsequent to the measurement date Total $ 259,959 Deferred Inflows of Resources $ 42,845 804,601 41,737 177,380 642,596 1,748,893 $ 220,225 The amounts reported as deferred outflows of resources related to pensions resulting from county contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2017. County contributions for PSPRS include a voluntary $10 million excess payment to reduce the unfunded liability. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 91 Coconino County Notes to Financial Statements June 30, 2016 Year ending June 30 2017 2018 2019 2020 2021 PSPRS Sheriff CORP Detention $ 1,085,653 $ 1,085,653 508,527 13,888 CORP AOC 79,849 $ 79,849 79,848 94,603 (6,053) 233,203 233,203 233,203 205,148 (18,685) Agent plan OPEB actuarial assumptions – The health insurance premium benefit contribution requirements for the year ended June 30, 2016, were established by the June 30, 2014, actuarial valuations, and those actuarial valuations were based on the following actuarial methods and assumptions. Actuarial valuations involve estimates of the reported amounts’ value and assumptions about the probability of events in the future. Amounts determined regarding the plans’ funded status and the annual required contributions are subject to continual revision as actual results are compared to past expectations and new estimates are made. The required schedule of funding progress for the health insurance premium benefit presented as required supplementary information provides multiyear trend information that shows whether the actuarial value of the plans’ assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Projections of benefits are based on (1) the plans as the County and plans’ members understand them and include the types of benefits in force at the valuation date, and (2) the pattern of sharing benefit costs between the County and plans’ members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The significant actuarial methods and assumptions used are the same for all PSPRS and CORP plans and related benefits (unless noted), and the following actuarial methods and assumptions were used to establish the fiscal year 2016 contribution requirements: PSPRS and CORP – OPEB Contribution Requirements Actuarial valuation date June 30, 2014 Actuarial cost method Entry age normal Amortization method Level percent closed for unfunded actuarial accrued liability, open for excess Remaining amortization period 22 years for unfunded actuarial accrued liability, 20 years for excess Asset valuation method 7-year smoothed market value; 20% corridor Actuarial assumptions: Investment rate of return 7.85% Projected salary increases 4%–8% for PSPRS and 4%–7.25% for CORP Wage growth 4% for PSPRS and CORP 92 Coconino County Notes to Financial Statements June 30, 2016 Agent plan OPEB trend information – Annual OPEB cost information for the health insurance premium benefit for the current and 2 preceding years follows for each of the agent plans: Year Ended June 30 PSPRS Sheriff 2016 Percentage of Annual Cost Contributed Annual OPEB Cost $ Net OPEB Obligation 23,029 100% 2015 68,725 100% 0 2014 68,144 100% 0 8,162 31,500 30,825 100% 100% 100% CORP Detention 2016 2015 2014 $ $ 0 0 0 0 Agent plan OPEB funded status – The health insurance premium benefit plans’ funded status as of the most recent valuation date, June 30, 2016, along with the actuarial assumptions and methods used in those valuations follow. PSPRS Sheriff Actuarial value of assets (a) Actuarial accrued liability (b) Unfunded actuarial accrued liability (funding excess) (b) – (a) $ Funded ratio (a)/(b) Annual covered payroll (c) 647,863 468,299 424,012 186,444 (44,287) 77.7% 110.4% 6.6% 93 $ 834,307 $ 2,845,463 Unfunded actuarial accrued liability (funding excess) as a percentage of covered payroll (b) – (a) / (c) CORP Detention $ 3,421,091 (1.3)% Coconino County Notes to Financial Statements June 30, 2016 The actuarial methods and assumptions used are the same for all the PSPRS and CORP health insurance premium benefit plans (unless noted), and for the most recent valuation date are as follows: PSPRS and CORP – OPEB Funded Status Actuarial valuation date June 30, 2015 Actuarial cost method Entry age normal Amortization method Level percent closed for unfunded actuarial accrued liability, open for excess Remaining amortization period 21 years for unfunded actuarial accrued liability, 20 years for excess Asset valuation method 7-year smoothed market value; 80%/120% market corridor Actuarial assumptions: Investment rate of return 7.85% Projected salary increases 4%–8% for PSPRS and 4%–7.25% for CORP Wage growth 4% for PSPRS and CORP C. Elected Officials Retirement Plan Plan description – Elected officials and judges participate in the Elected Officials Retirement Plan (EORP). EORP administers a cost-sharing multiple-employer defined benefit pension plan and a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB) plan for elected officials and judges who were members of the plan on December 31, 2013. This plan was closed to new members as of January 1, 2014. The PSPRS Board of Trustees governs the EORP according to the provisions of A.R.S. Title 38, Chapter 5, Article 3. The PSPRS issues a publicly available financial report that includes financial statements and required supplementary information for the EORP plans. The report is available on PSPRS’s website at www.psprs.com. Benefits provided – The EORP provides retirement, health insurance premium supplement, disability, and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits are calculated on the basis of age, average yearly compensation, and service credit as follows: EORP Retirement and Disability Years of service and age required to receive benefit Final average salary is based on Initial membership date: Before January 1, 2012 On or after January 1, 2012 20 years, any age 10 years, age 62 5 years, age 65 5 years, any age* any years and age if disabled 10 years, age 62 5 years, age 65 any years and age if disabled Highest 36 consecutive months of last 10 years Highest 60 consecutive months of last 10 years 94 Coconino County Notes to Financial Statements June 30, 2016 EORP Initial membership date: Before January 1, 2012 On or after January 1, 2012 Benefit percent Normal Retirement 4% per year of service, not to exceed 80% 3% per year of service, not to exceed 75% Disability Retirement 80% with 10 or more years of service 40% with 5 to 10 years of service 20% with less than 5 years of service 75% with 10 or more years of service 37.5% with 5 to 10 years of service 18.75% with less than 5 years of service Retired Members 75% of retired member’s benefit 50% of retired member’s benefit Active Members and Other Inactive Members 75% of disability retirement benefit 50% of disability retirement benefit Survivor Benefit *With reduced benefits of 0.25% for each month early retirement precedes the member’s normal retirement age, with a maximum reduction of 30%. Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on excess investment earning. In addition, from and after December 31, 2015, the Legislature may enact permanent one-time benefit increases after a Joint Legislative Budget Committee analysis of the increase’s effects on the plan. Contributions – State statutes establish active member and employer contribution requirements. Statute also appropriates $5 million annually through fiscal year 2043 for the EORP from the State of Arizona to supplement the normal cost plus an amount to amortize the unfunded accrued liability and designates a portion of certain court fees for the EORP. For the year ended June 30, 2016, statute required active EORP members to contribute 13 percent of the members’ annual covered payroll and the County to contribute 23.5 percent of active EORP members’ annual covered payroll. The County’s contributions to the pension plan for the year ended June 30, 2016, were $394,136. No OPEB contributions were required or made for the years ended June 30, 2015 and 2016. The County’s OPEB contributions for the current and 2 preceding years, all of which were equal to the required contributions, were as follows: EORP Year ended June 30 2016 2015 2014 95 Health Insurance Fund $ 27,154 Coconino County Notes to Financial Statements June 30, 2016 During fiscal year 2016, the County paid for EORP pension contributions as follows: 96.4 percent from the General Fund and 3.6 percent from major funds. Pension liability – At June 30, 2016, the County reported a liability for its proportionate share of the EORP’s net pension liability that reflected a reduction for the County’s proportionate share of the State’s appropriation for EORP. The amount the County recognized as its proportionate share of the net pension liability, the related state support, and the total portion of the net pension liability that was associated with the County were as follows: County’s proportionate share of the EORP net pension liability State’s proportionate share of the EORP net pension liability associated with the County Total $14,583,025 4,546,380 $19,129,405 The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The County’s proportion of the net pension liability was based on the County’s actual contributions to the plan relative to the total of all participating employers’ actual contributions for the year ended June 30, 2015. The County’s proportion measured as of June 30, 2015 was 1.866 percent, which was a decrease of 0.026 from its proportion measured as of June 30, 2014. Pension expense and deferred outflows/inflows of resources – For the year ended June 30, 2016, the County recognized pension expense for EORP of $4,451,824 and revenue of $1,223,264 for the County’s proportionate share of the State’s appropriation to EORP and the designated court fees. At June 30, 2016, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 96 Coconino County Notes to Financial Statements June 30, 2016 EORP Deferred Outflows of Resources Differences between expected and actual experience $ Changes in assumptions or other inputs Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between county contributions and proportionate share of contributions County contributions subsequent to the measurement date Total $ 23,319 Deferred Inflows of Resources $ 162,362 2,443,505 88,446 78,383 394,136 2,949,406 $ 240,745 The $394,136 reported as deferred outflows of resources related to EORP pensions resulting from county contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to EORP pensions will be recognized in pension expense as follows: Year ending June 30 2017 2018 2019 2020 1,960,440 280,206 7,283 66,596 Actuarial assumptions – The significant actuarial assumptions used to measure the total pension liability are as follows: EORP Actuarial valuation date Actuarial cost method Investment rate of return Projected salary increases Inflation Permanent benefit increase Mortality rates June 30, 2015 Entry age normal 7.85% 4.25% 4.0% Included RP-2000 mortality table projected to 2025 with projection scale AA 97 Coconino County Notes to Financial Statements June 30, 2016 Actuarial assumptions used in the June 30, 2015, valuation were based on the results of an actuarial experience study for the 5-year period ended June 30, 2011. The long-term expected rate of return on EORP pension plan investments was determined to be 7.85 percent using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: EORP Asset Class Short term investments Absolute return Risk parity Fixed income Real assets GTAA Private equity Real estate Credit opportunities Non-U.S. equity U.S. equity Total Target Allocation 2% 5% 4% 7% 8% 10% 11% 10% 13% 14% 16% 100% Long-Term Expected Geometric Real Rate of Return 0.75% 4.11% 5.13% 2.92% 4.77% 4.38% 9.50% 4.48% 7.08% 8.25% 6.23% Discount rate – At June 30, 2015, the discount rate used to measure the EORP total pension liability was 4.86 percent, which was a decrease of 0.81 from the discount rate used as of June 30, 2014. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate, employer contributions will be made at the statutorily set rates, and state contributions will be made as currently required by statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be insufficient to make all projected future benefit payments of current plan members. Therefore, to determine the total pension liability for the plan, the long-term expected rate of return on pension plan investments of 7.85 percent was applied to periods of projected benefit payments through the year ended June 30, 2028. A municipal bond rate of 3.80 percent obtained from the 20-year Bond Buyer Index, as published by the Federal Reserve as of June 25, 2015, was applied to periods of projected benefit payments after June 30, 2028. 98 Coconino County Notes to Financial Statements June 30, 2016 Sensitivity of the County’s proportionate share of the EORP net pension liability to changes in the discount rate – The following table presents the County’s proportionate share of the net pension liability calculated using the discount rate of 4.86 percent, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (3.86 percent) or 1 percentage point higher (5.86 percent) than the current rate: EORP County’s proportionate share of the net pension liability 1% Decrease (3.86%) Current Discount Rate 1% Increase (5.86%) (4.86%) $ 16,976,480 $ 14,583,025 $12,570,254 Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued EORP financial report. Also, the County reported $17,853,910 of pension contributions as expenditures in the governmental funds related to all pension plans to which it contributes. D. Postemployment Healthcare Plan Plan Description—Employees retiring from Coconino County service, who receive monthly income from any of the Arizona State individual retirement plans, are eligible to continue insurance coverage through the same plan as active employees and their beneficiaries up to the age of 65 through the Northern Arizona Public Employees Benefit Trust (NAPEBT). NAPEBT administers a cost-sharing multiple employer postemployment healthcare benefit plan; however, it is reported as an agent-multiple employer plan for financial reporting purposes as the plan assets are not dedicated solely to providing benefits to retirees and their beneficiaries. Coconino County is a member of NAPEBT and the benefits and premium rates are approved by the Trust and the Board of Supervisors on an annual basis for active and retired members. NAPEBT issues a publicly available financial report that may be obtained on their website at www.napebt.com. Although Coconino County does not explicitly pay a portion of the retirees’ premiums, because of the inclusion of this class in the insured pool, there is an implicit subsidy or “premium rate differential” that is incurred by the County. Funding Policy – The contribution requirements of plan members and the County are established and may be amended by the NAPEBT board. Eligible retirees up to the age of 65 have the option to participate in the healthcare plan that is currently being offered to active employees and must pay 100% of the premium less any reimbursement from the Arizona State individual retirement plans. The program is currently funded on a pay-as-yougo basis. 99 Coconino County Notes to Financial Statements June 30, 2016 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 2016 and the two preceding years were as follows: Fiscal Year Ended 6/30/2016 6/30/2015 6/30/2014 Annual OPEB Cost $ 895,123 996,848 949,983 Actual Contributions $ 395,125 93,243 133,882 Percentage of Annual OPEB Cost Contributed 44.14% 9.35% 14.09% Change in Net OPEB Obligation $ 499,998 903,605 816,101 Components of Annual OPEB Costs and Net OPEB Obligation – The annual components of OPEB cost and net OPEB obligation as of June 30, 2016, were as follows: Annual required contribution (ARC) $ 998,908 Interest on existing net OPEB obligation $ 284,921 ARC adjustment $ (388,706) Increase in OPEB obligation $ 499,998 Net OPEB obligation $ 6,831,582 Funding Status and Funding Progress – The latest actuarial valuation done was as of July 1, 2015. The funded status of the plan as of June 30, 2016, was as follows: Actuarial Valuation Date 7/1/2015 (1) Actuarial value of plan assets $ (2) Actuarial accrued liability (AAL) $ 8,119,959 (3) Funded ratio (1) / (2) 0.00% (4) Unfunded AAL (2) - (1) $ 8,119,959 (5) Covered payroll $ 49,643,004 (6) Unfunded AAL as a percentage of covered payroll (4) / (5) 16.36% Actuarial Methods and Assumptions – Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of the funding progress presented as required supplementary information provides multiyear trend information that shows whether the actuarial value of plan’s assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Projections of benefits are based on 1) the plan as the County and plan’s members understand it and include the types of benefits in force at the valuation date, and 2) the pattern of sharing benefit costs between the County and plan’s members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods and assumptions used for most recent valuation date are as follows: 100 Coconino County Notes to Financial Statements June 30, 2016 Valuation Date Actuarial cost method Amortization method Remaining amortization period Investment rate of return Medicare coverage age Retirement and disability age Active members Retirees, beneficiaries, and dependents Asset Valuation method Inflation rate Projected salary increase Post-retirement benefits increase Healthcare cost trend rate July 1, 2015 Entry Age, Level Dollar 30-Year Amortization, level dollar, Open 30 years 4.50% 65 Based on the assumptions for the ASRS Defined Benefit valuation as of June 30, 2014 909 75 N/A. No assets in an OPEB trust N/A N/A N/A 7.00% graded down to ultimate rate of 5.00% over 8 years NOTE 10 – INTERFUND BALANCES AND ACTIVITY Interfund Receivables and Payables – Interfund balances at June 30, 2016, 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 General Fund Payable from General Fund Public Works/HURF Fund Jail District Fund Public Health Services District Fund Nonmajor Governmental Funds Internal Service Fund Total Public Public Health Nonmajor Works/ Jail District Services Governmental HURF Fund Fund District Fund Funds $ $ 12,368 $ 78,787 $ 62,478 265,277 133,619 1,166,975 164,827 774 $1,629,123 $ 177,195 $ 78,787 $ 101 133,452 963 $ 1,146,521 129,394 77,079 8,000 727,258 134,415 $ Internal Service Fund $105,924 154,305 3,311 10,090 70,253 Total $1,477,052 346,177 345,667 151,709 2,130,276 774 2,088,252 $ 343,883 $ 4,451,655 Coconino County Notes to Financial Statements June 30, 2016 Interfund Transfers – Interfund transfers for the year ended June 30, 2016, were as follows: Transfer to Public Works/ General Fund HURF Fund Jail District Fund Public Health Services District Fund $2,587,635 $ Nonmajor Government al Funds Internal Service Fund Total Transfer from General Fund Public Works/HURF Fund Jail District Fund Public Health Services District Fund Nonmajor Governmental Funds Total $ $ 20,000 4,909,041 $1,857,288 $ $ 9,373,964 49,791 129,044 178,835 10,634,769 203,420 10,838,189 49,885 478,939 $11,213,384 $ 49,885 752,160 1,034,242 772,160 $ 2,587,635 $ 60,575 2,325,916 4,909,041 $ 3,223,994 $60,575 $22,766,789 Interfund transfers are used to move revenues from the fund that collects them to the fund that expends them. Advances From/To Other Funds The General Fund has advanced $1,783 to Oakwood Pines County Road Improvement Districts to cover debt service payments and $1 million to the Flood Control District to provide cash to cover expenditures made for the catastrophic flooding. The $1 million advance to the Flood Control District is expected to be paid back in fiscal years 2017 through 2019. Advances from General Advances To Fund Oakwood Pines $ 1,783 Flood Control District 1,000,000 Total Advances From $ 1,001,783 NOTE 11 – COUNTY TREASURER’S INVESTMENT POOL Arizona Revised Statutes require community colleges, school districts, and other local governments to deposit certain public monies with the County Treasurer. The Treasurer has a fiduciary responsibility to administer those and the County’s monies under her stewardship. The Treasurer invests, on a pool basis, all idle monies not specifically invested for a fund or program. In addition, the Treasurer determines the fair value of those pooled investments annually at June 30. The County Treasurer’s investment pool is not registered with the Securities and Exchange Commission as an investment company, and there is no regulatory oversight of its operations. The pool’s structure does not provide for shares, and the County has not 102 Coconino County Notes to Financial Statements June 30, 2016 provided or obtained any legally binding guarantees to support the value of the participants’ investments. The Treasurer allocates interest earnings to each of the pool’s participants. The deposits and investments the County holds are included in the County Treasurer’s investment pool, except for $3,300,441 of deposits, $457,572 of investments in mutual funds-debt, $2,655,699 in the State Treasurer’s Investment Pool #7, and $206,886 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 Corporate bonds Negotiable CDs Commercial paper Municipal bonds Money market mutual funds $ Principal 99,688,206 33,569,258 8,682,103 15,659,257 14,324,406 95,714 Interest Rates 0-1.750% 1.000-3.350% 0.650-2.650% 0.610-1.700% 0.600-4.276% 0.191% Maturities 07/15/2016-05/17/2021 07/05/2016-09/14/2020 07/28/2016-08/12/2020 08/01/2016-04/21/2017 07/01/2016-11/01/2020 less than 1 year $ Amount 99,884,543 33,392,223 8,739,005 15,659,257 14,492,164 95,714 A condensed statement of the investment pool’s net position and changes in net position follows: Statement of Net Position Assets Net position $ 209,700,249 $ 209,700,249 Net position held in trust for: Internal participants External participants Total net position held in trust $ 89,665,783 120,034,466 $ 209,700,249 Statement of Changes in Net Position Total additions Total deletions Net increase Net position held in trust July 1, 2015 June 30, 2016 103 $ 371,508,422 357,869,289 13,639,133 196,061,116 $ 209,700,249 Coconino County Notes to Financial Statements June 30, 2016 NOTE 12 – MAINTENANCE OF EFFORT Coconino County is required to maintain statutory levels of support for the Coconino County Jail District and the Coconino County Public Health Services District. In accordance with A.R.S. Section 48-4024, Coconino County is required to make annual maintenance of effort payments (MOE) to the Coconino County Jail District, a special revenue fund type. The payments will be made through fiscal year 2027, and are determined by first establishing a base expenditure which was used as the initial fiscal year 1998 MOE payment. Subsequent payments are determined by adjusting the base expenditure by the annual change in the gross domestic product price deflator, obtained from the State of Arizona Economic Estimates Commission. These payments are recorded by the jail district as transfers. The MOE payment for fiscal year 2016 was $2,587,635. In accordance with A.R.S. Section 485802 Coconino County is required to maintain a specific level of expenditures for public health services. This is accomplished by transferring funds to the Public Health Services District, a special revenue fund type. The payment for fiscal year 2016 was $4,780,393. 104 REQUIRED SUPPLEMENTARY INFORMATION 105 Coconino County Required Supplementary Information Budgetary Comparison Schedule General Fund Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Property taxes County sales taxes Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Expenditures: General government Assessor Board of Supervisors Clerk of the Superior Court Community Development Community Initiatives County Attorney County Manager Facilities Finance/Budget Flagstaff Justice Court Fredonia Justice Court Human Resources Information Technology Legal Defender Non-departmental Page Justice Court Public Defender Recorder Superior Courts Treasurer Williams Justice Court Total general government $ 9,517,093 13,414,100 1,062,928 1,121,150 26,315,683 1,702,341 121,400 206,000 106,315 53,567,010 2,006,550 1,237,003 1,196,098 2,125,174 206,935 3,613,523 1,332,152 4,142,644 1,442,215 1,200,980 192,427 1,301,440 2,256,879 1,029,042 20,074,091 369,081 2,298,973 1,827,188 3,173,505 622,281 362,499 52,010,680 Final $ 9,517,093 13,414,100 1,062,928 1,121,150 27,338,564 1,702,341 121,400 206,000 106,315 54,589,891 Actual Amounts $ 2,087,608 1,245,383 1,196,098 2,133,225 222,744 3,576,707 1,327,052 4,208,850 1,440,175 1,200,980 192,427 1,308,324 2,265,971 1,026,322 7,309,799 369,081 2,289,367 2,327,188 3,263,998 622,281 418,486 40,032,066 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 106 9,498,577 14,360,222 1,135,405 1,351,348 28,885,641 2,142,798 298,660 245,964 188,357 58,106,972 1,754,467 1,324,346 1,174,061 1,641,559 131,484 3,239,696 1,226,936 3,115,762 1,222,666 1,185,461 187,935 1,081,851 1,485,562 1,033,304 1,039,654 376,272 2,207,186 1,722,559 3,096,786 449,083 416,817 29,113,447 Variance with Final Budget $ (18,516) 946,122 72,477 230,198 1,547,077 440,457 177,260 39,964 82,042 3,517,081 333,141 (78,963) 22,037 491,666 91,260 337,011 100,116 1,093,088 217,509 15,519 4,492 226,473 780,409 (6,982) 6,270,145 (7,191) 82,181 604,629 167,212 173,198 1,669 10,918,619 (continued) Coconino County Required Supplementary Information Budgetary Comparison Schedule General Fund (Continued) Year Ended June 30, 2016 Budgeted Amounts Original Public safety Adult Probation Constable Juvenile Probation Sheriff Total public safety Final Actual Amounts Variance with Final Budget 1,574,886 96,237 3,035,749 9,829,493 14,536,365 1,574,646 96,237 3,035,749 20,832,865 25,539,497 1,569,889 93,782 2,813,145 20,468,907 24,945,723 4,757 2,455 222,604 363,958 593,774 Highways and streets Information Technology 535,828 535,828 451,477 84,351 Health Information Technology 26,471 26,471 28,619 (2,148) Welfare Community Services 1,029,327 1,028,527 1,179,379 (150,852) Culture and recreation Parks and Recreation 1,639,911 1,638,078 1,489,745 148,333 Education School Superintendent Total expenditures 467,217 70,245,799 467,217 69,267,684 458,272 57,666,662 8,945 11,601,022 (16,678,789) (14,677,793) 440,310 15,118,103 Excess (deficiency) of revenues over expenditures Other financing sources (uses): Capital lease agreement Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 1,206,594 (9,807,050) (8,600,456) 11,206,594 (9,715,028) 1,491,566 90,011 3,300 11,213,384 (9,373,964) 1,932,731 Net change in fund balances (25,279,245) (13,186,227) 2,373,041 15,559,268 Fund balance, July 1, 2015 Fund balance, June 30, 2016 25,279,245 25,279,245 12,093,018 27,643,585 30,016,626 2,364,340 $ 17,923,608 $ $ The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 107 90,011 3,300 6,790 341,064 441,165 Coconino County Required Supplementary Information Budgetary Comparison Schedule Public Works/HURF Fund Year Ended June 30, 2016 Budgeted Amounts Revenues: County sales taxes Licenses and permits Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues 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 change in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 Actual Amounts Variance with Final Budget Original Final $ 7,839,498 28,100 11,249,165 $ 7,839,498 28,100 11,249,165 50,000 50,000 19,166,763 19,166,763 $ 8,426,665 25,974 11,732,298 6,592 278,249 2,425 20,472,203 26,121,694 26,121,694 28,681,464 28,681,464 22,422,188 22,422,188 6,259,276 6,259,276 (6,954,931) (9,514,701) (1,949,985) 7,564,716 150,000 760,000 (221,091) 688,909 150,000 780,000 (221,091) 708,909 352,249 772,160 (178,835) 945,574 (6,266,022) (8,805,792) (1,004,411) 16,715,253 $ 10,449,231 16,715,253 $ 7,909,461 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 108 20,991,041 $ 19,986,630 587,167 (2,126) 483,133 6,592 228,249 2,425 1,305,440 202,249 (7,840) 42,256 236,665 7,801,381 4,275,788 $ 12,077,169 Coconino County Required Supplementary Information Budgetary Comparison Schedule Jail District Fund Year Ended June 30, 2016 Budgeted Amounts Actual Amounts Variance with Final Budget Original Final $ 13,274,100 12,000 1,407,483 193,057 $ 13,274,100 169,254 1,407,483 193,057 14,000 14,886,640 15,057,894 $ 14,127,110 190,258 527,292 219,294 14,000 39 15,077,993 19,454,964 19,454,964 19,879,697 19,879,697 13,863,593 13,863,593 6,016,104 6,016,104 Excess (deficiency) of revenues over expenditures (4,568,324) (4,821,803) 1,214,400 6,036,203 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 2,595,929 (855,149) 1,740,780 2,595,929 (10,856,657) (8,260,728) 2,587,635 (10,838,189) (8,250,554) (2,827,544) (13,082,531) (7,036,154) Revenues: County sales taxes Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Expenditures: Public safety Sheriff Total expenditures Net change in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 18,277,784 $ 15,450,240 18,277,784 $ 5,195,253 19,603,936 $ 12,567,782 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 109 $ 853,010 21,004 (880,191) 26,237 39 20,099 (8,294) 18,468 10,174 6,046,377 $ 1,326,152 7,372,529 Coconino County Required Supplementary Information Budgetary Comparison Schedule Public Health Services District Fund Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Property taxes County sales taxes Licenses and permits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: Public safety Medical Examiner Health Health Department Welfare Community Services Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 3,850,071 $ Final Actual Amounts Variance with Final Budget 3,850,071 $ $ 9,381,551 (10,767) 5,897 (6,053) (532,060) 75,663 17,644 88,401 (66,691) (427,966) 706,409 737,683 (31,274) 13,306,130 13,823,603 12,694,622 1,128,981 142,731 142,731 142,422 309 14,155,270 14,672,743 13,574,727 1,098,016 (4,785,951) (4,863,226) (4,193,176) 4,914,244 (137,022) 4,777,222 4,910,444 (145,775) 4,764,669 4,551 4,909,041 (49,885) 4,863,707 (8,729) (98,557) 561,253 4,354,957 546,171 6,034 23,000 27,833 9,369,319 561,253 4,756,297 546,171 6,034 23,000 66,691 9,809,517 706,409 1,586,580 1,577,851 $ 1,586,580 1,488,023 The Notes to the Budgetary Comparison Schedules are an integral part of this schedule. 110 3,839,304 5,897 555,200 4,224,237 621,834 23,678 111,401 670,050 4,551 (1,403) 95,890 99,038 670,531 $ 1,990,537 2,661,068 769,088 $ 403,957 1,173,045 Coconino County Required Supplementary Information Notes to Budgetary Comparison Schedules June 30, 2016 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, 2016, expenditures exceeded final budget amounts at the department level (the legal level of budgetary control) as follows: Fund/Department General Fund Community Services Board of Supervisors Page Justice Court Legal Defender Public Health Services District Fund Medical Examiner Excess $150,543 78,963 7,191 6,982 31,274 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. 111 Coconino County Required Supplementary Information Schedule of the County’s Proportionate Share of the Net Pension Liability Cost-Sharing Pension Plans June 30, 2016 Arizona State Retirement System County’s proportion of the net pension liability County’s proportionate share of the net pension liability County’s covered payroll County’s proportionate share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability $ $ Corrections Officer Retirement Plan—Administrative Office of the Courts County’s proportion of the net pension liability County’s proportionate share of the net pension liability County’s covered payroll County’s proportionate share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability $ $ Elected Officials Retirement Plan County’s proportion of the net pension liability County’s proportionate share of the net pension liability State's proportionate share of the net pension liability associated with the County Total County’s covered payroll County’s proportionate share of the net pension liability as a percentage of its covered payroll Plan fiduciary net position as a percentage of the total pension liability $ $ $ See accompanying notes to pension plan schedules. 112 Reporting Fiscal Year (Measurement Date) 2016 2015 2014 through 2007 (2015) (2014) 0.39% 0.40% Information 61,051,275 $ 58,741,596 not available 36,081,751 $ 35,786,206 169.20% 164.15% 68.35% 69.49% Reporting Fiscal Year (Measurement Date) 2016 2015 2014 through (2015) (2014) 2007 3.12% 3.24% Information 7,590,997 $ 7,259,716 not available 3,530,713 $ 3,481,917 215.00% 208.50% 57.89% 58.59% Reporting Fiscal Year (Measurement Date) 2016 2015 2014 through (2015) (2014) 2007 1.87% 1.89% Information 14,583,025 $ 12,687,065 not available 4,546,380 19,129,405 $ 1,695,740 $ 3,889,972 16,577,037 1,740,635 859.98% 728.88% 28.32% 31.91% Coconino County Required Supplementary Information Schedule of Changes in the County’s Net Pension Liability and Related Ratios Agent Pension Plans June 30, 2016 Public Safety Personnel Retirement System - Sheriff Total pension liability Service cost Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending (a) Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending (b) Reporting Fiscal Year (Measurement Date) 2016 2015 2014 through 2007 (2015) (2014) Information $ 542,285 $ 526,940 not available 3,045,276 2,499,646 1,149,553 (519,453) - 40,499 5,497,276 (2,740,615) (2,801,153) 327,493 6,912,761 39,892,490 32,979,729 $ 40,219,983 $ 39,892,490 $ 1,798,480 $ 1,717,418 451,605 342,096 360,105 1,251,743 (2,740,615) (2,801,153) (9,163) (10,081) 37,644 24,720 (101,944) 524,743 9,933,371 9,408,628 $ 9,831,427 $ 9,933,371 County’s net pension liability—ending (a) – (b) $ 30,388,556 $ 29,959,119 Plan fiduciary net position as a percentage of the total pension liability Covered payroll 24.44% 24.90% $ 3,241,732 $ 3,069,559 County’s net pension liability as a percentage of covered payroll See accompanying notes to pension plan schedules. 113 937.42% 976.01% Coconino County Required Supplementary Information Schedule of Changes in the County’s Net Pension Liability and Related Ratios Agent Pension Plans June 30, 2016 Correction Officers Retirement Plan - Detention Total pension liability Service cost Interest on the total pension liability Changes of benefit terms Differences between expected and actual experience in the measurement of the pension liability Changes of assumptions or other inputs Benefit payments, including refunds of employee contributions Net change in total pension liability Total pension liability—beginning Total pension liability—ending (a) Plan fiduciary net position Contributions—employer Contributions—employee Net investment income Benefit payments, including refunds of employee contributions Administrative expense Other changes Net change in plan fiduciary net position Plan fiduciary net position—beginning Plan fiduciary net position—ending (b) Reporting Fiscal Year (Measurement Date) 2016 2015 2014 through 2007 (2015) (2014) Information $ 486,259 $ 536,007 not available 694,602 588,300 43,775 (79,768) - 124,233 448,734 (286,223) (437,813) 814,870 1,303,236 8,748,409 7,445,173 $ 9,563,279 $ 8,748,409 $ 296,134 $ 312,482 246,544 313,756 320,700 788,339 (286,223) (437,813) (6,468) (6,198) (5,389) (67,789) 557,080 910,995 6,557,432 5,646,437 $ 7,114,512 $ 6,557,432 County’s net pension liability—ending (a) – (b) $ 2,448,767 $ 2,190,977 Plan fiduciary net position as a percentage of the total pension liability Covered payroll 74.39% 74.96% $ 3,705,907 $ 3,669,661 County’s net pension liability as a percentage of covered payroll See accompanying notes to pension plan schedules. 114 66.08% 59.71% Coconino County Required Supplementary Information Schedule of County Pension Contributions June 30, 2016 Arizona State Retirement System Reporting Fiscal Year 2016 Statutorily required contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered payroll County’s contributions as a percentage of covered payroll $ 4,071,019 $ 3,929,303 4,071,019 3,929,303 $ $ $ 37,520,908 $36,081,751 10.85% Correction Officer Retirement Plan Administrative Office of the Courts Statutorily required contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered payroll County’s contributions as a percentage of covered payroll 2015 10.89% 10.70% Reporting Fiscal Year 2016 $ $ $ 2015 642,596 $ 525,370 642,596 525,370 $ 3,364,379 $ 3,530,713 19.10% Elected Officials Retirement Plan $ 2013 2014 through 2007 503,137 Information not 503,137 available $ $ 3,481,917 14.88% 14.45% Reporting Fiscal Year 2016 Statutorily required contribution County’s contributions in relation to the statutorily required contribution County’s contribution deficiency (excess) County’s covered payroll County’s contributions as a percentage of covered payroll 2013 through 2007 $ 3,829,124 Information not 3,829,124 available $ $35,786,206 2014 $ $ $ 2015 394,136 $ 398,499 394,136 398,499 $ 1,677,173 $ 1,695,740 23.50% See accompanying notes to pension plan schedules. 115 23.50% 2013 through 2007 403,131 Information not 403,131 available 2014 $ $ $ 1,740,635 23.16% Coconino County Required Supplementary Information Schedule of County Pension Contributions June 30, 2016 Public Safety Personnel Retirement System - Sheriff Actuarially determined contribution County’s contributions in relation to the actuarially determined contribution County’s contribution deficiency (excess) County’s covered payroll County’s contributions as a percentage of covered payroll Reporting Fiscal Year 2016 $ 2,403,682 $ 1,819,260 12,403,682 1,819,260 $ (10,000,000) $ $ 3,198,513 $ 3,241,732 387.80% Correction Officer Retirement Plan Detention Actuarially determined contribution County’s contributions in relation to the actuarially determined contribution County’s contribution deficiency (excess) County’s covered payroll County’s contributions as a percentage of covered payroll 2015 2013 through 2007 $ 1,717,418 Information not 1,717,418 available $ $ 3,069,559 2014 56.12% 55.95% Reporting Fiscal Year 2016 $ $ $ 2015 378,425 $ 295,361 378,425 295,361 $ 3,710,052 $ 3,705,907 10.20% See accompanying notes to pension plan schedules. 116 7.97% 2013 through 2007 313,756 Information not 313,756 available 2014 $ $ $ 3,669,661 8.55% Coconino County Required Supplementary Information Notes to Pension Plan Schedules June 30, 2016 Note 1 – Actuarially Determined Contribution Rates Actuarial determined contribution rates for PSPRS and CORP are calculated as of June 30 two years prior to the end of the fiscal year in which contributions are made. The actuarial methods and assumptions used to establish the contribution requirements are as follows: Actuarial cost method Amortization method Remaining amortization period as of the 2014 actuarial valuation Asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Wage growth Retirement age Mortality Entry age normal Level percent closed for unfunded actuarial accrued liability, open for excess 22 years for unfunded actuarial accrued liability, 20 years for excess 7-year smoothed market value; 80%/120% market corridor In the 2013 actuarial valuation, the investment rate of return was decreased from 8.0% to 7.85% In the 2014 actuarial valuation, projected salary increases were decreased from 4.5%–8.5% to 4.0%– 8.0% for PSPRS and from 4.5%–7.75% to 4.0%– 7.25% for CORP. In the 2013 actuarial valuation, projected salary increases were decreased from 5.0%–9.0% to 4.5%–8.5% for PSPRS and from 5.0%– 8.25% to 4.5%–7.75% for CORP In the 2014 actuarial valuation, wage growth was decreased from 4.5% to 4.0% for PSPRS and CORP. In the 2013 actuarial valuation, wage growth was decreased from 5.0% to 4.5% for PSPRS and CORP Experience-based table of rates that is specific to the type of eligibility condition. Last updated for the 2012 valuation pursuant to an experience study of the period July 1, 2006 - June 30, 2011. RP-2000 mortality table (adjusted by 105% for both males and females) Note 2 - Factors That Affect Trends In fiscal year 2016, the County made a $10 million excess payment to reduce the PSPRS unfunded liability which significantly affected the trends in the amounts reported. Had the County only made the actuarially determined contribution, the County’s contribution as a percentage of covered payroll would have been 75.15% for the 2016 fiscal year. 117 Coconino County Required Supplementary Information Schedule of Agent Retirement Plans’ and Coconino County Postemployment Healthcare Plan’s Funding Progress June 30, 2016 Health Insurance Premium Benefit Valuation Date Actuarial Value of Assets (a) PSPRS Sheriff 6/30/2016 $ 647,863 6/30/2015 633,475 6/30/2014 587,700 CORP Detention 6/30/2016 $ 468,299 6/30/2015 444,438 6/30/2014 400,984 Actuarial Accrued Liability (AAL) (b) Unfunded AAL (UAAL) (b-a) Funded ratio (a/b) Annual Covered Payroll (c) UAAL as a % of Covered Payroll ((b-a)/c)) $ 834,307 798,157 776,530 $ 186,444 164,682 188,830 77.65% 79.37% 75.68% $ 2,845,463 3,122,030 2,950,184 6.55% 5.27% 6.40% $ 424,012 402,809 366,967 $ 110.44% 110.33% 109.27% $ 3,421,091 3,670,869 3,488,706 (1.29)% (1.13)% (0.98)% 0.00% 0.00% 0.00% $ 49,643,004 49,547,980 48,579,979 16.36% 17.10% 20.40% (44,287) (41,629) (34,017) Coconino County Postemployment Healthcare Plan 7/1/2015 $ 8,119,959 $ 8,119,959 7/1/2013 8,472,061 8,472,061 7/1/2011 9,911,098 9,911,098 See accompanying notes to schedule of agent OPEB plans’ funding progress. 118 Coconino County Required Supplementary Information Notes to Schedule of Agent Retirement Plans’ and Coconino County Postemployment Healthcare Plan’s Funding Progress June 30, 2016 Note 1 – Actuarial Information Available New actuarial measurements are required by GASB 45 to be made biennially for the Coconino County Postemployment Healthcare Plan. The County used the most recent actuarial valuation, since the full actuarial valuation as of July 1, 2016 was not available. Note 2 – Factors That Affect the Identification of Trends Beginning in fiscal year 2014, PSPRS and CORP established separate funds for pension benefits and health insurance premium benefits. Previously, the plans recorded both pension and health insurance premium contributions in the same Pension Fund. During fiscal year 2014, the plans transferred prior-year health insurance premium benefit contributions that exceeded benefit payments from each plan’s Pension Fund to the new Health Insurance Fund. 119 THIS PAGE BLANK 120 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES NONMAJOR GOVERNMENTAL FUNDS 121 THIS PAGE BLANK 122 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2016 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. 25-381. 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. Flood Control District Fund – accounts for flood control services that are funded by a $0.4000 per $100 of assessed valuation property tax. Inmate Welfare – accounts for funds held in trust for the benefit and welfare of inmates, established under A.R.S. 31-121. Revenues are derived from sales of commissary items to inmates and pay phone usage. Jail Enhancement – accounts for state funds established under A.R.S. 41-2401.D.9. to be used to enhance county jail facilities and operations. Justice Courts Grants and Fees – accounts for various Justice Court programs provided by a combination of grants and fees 123 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2016 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, 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. 124 Coconino County Listing of Nonmajor Governmental Funds Year Ended June 30, 2016 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. 125 Coconino County Combining Balance Sheet Nonmajor Governmental Funds June 30, 2016 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities Assessor Storage and Retrieval Adult Probation Grants and Fees $ 743,696 $ 8,105 Career Center Grants Clerk of the Superior Court Grants and Fees $ $ 349,572 3,607 1,529 $ $ 105,336 34,580 229 888,977 62,942 89,812 675 16,308 118,307 2,596 $ 8,105 $ 134,615 $ $ 55 $ 20,986 29,908 $ 2,968 352,843 3,021 77,111 155,722 55 128,005 3,021 229 733,026 8,050 6,610 349,822 733,255 8,050 6,610 349,822 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances $ 888,977 126 $ 8,105 $ 134,615 $ 352,843 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2016 Nonmajor Governmental Funds (Continued) June 30, 2016 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities Community Services Grants and Fees $ Conciliation Court $ 39,481 County Attorney Grants and Fees $ 13,727 338,162 457,572 30,209 County Improvement Districts-Special Revenue $ 7,809 105,421 480 74 744 2,545 690,882 92,123 5,705 225,970 44,220 480 15,213 $ 797,212 $ 45,260 $ 1,104,686 $ 1,476,879 $ 32,198 28,033 $ 788 1,307 $ 27,120 14,189 $ 74,800 19,116 590,977 209,667 7,132 11,972 20,440 663,180 2,095 250,976 121,488 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 15,213 15,213 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 1,353,220 $ 134,032 43,165 853,710 1,340,178 134,032 43,165 853,710 1,340,178 797,212 127 $ 45,260 $ 1,104,686 $ 1,476,879 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2016 Nonmajor Governmental Funds (Continued) June 30, 2016 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities County Library District Emergency Services Grants Flood Control District Fund Inmate Welfare $ $ $ $ 145,988 84,402 241,332 10,789 380 382 92,472 11,453 3,429 49,738 5,032 $ 380,329 $ 14,882 $ 139,172 $ 252,503 $ 95,628 $ 18,943 8,050 $ 35,967 12,939 1,000,000 $ 2,112 4,372 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 141,489 124,553 123,500 963 95,628 151,546 1,172,406 7,447 123,341 123,341 3,004 3,004 65,898 65,898 10,196 10,196 161,360 161,360 $ 380,329 128 $ (139,668) (1,099,132) (139,668) (1,099,132) 14,882 $ 139,172 234,860 234,860 $ 252,503 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2016 Nonmajor Governmental Funds (Continued) June 30, 2016 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities Jail Enhancement $ Juvenile Court Grants and Fees Legal Defender Grants and Fees $ $ $ 832,981 112 17 1,344 1,481 1,867 $ 15,514 1,689 712,544 $ 836,346 $ $ 7,286 $ 8,133 4,339 $ 907,079 8,490 1,896 16 12,026 2,111 350 923,462 5,973 621 51,090 65,837 $ 15,100 $ 933 296,390 15,856 5,708 308,862 132,783 6,641 1,689 703,555 527,484 350 790,329 8,459 705,244 527,484 790,679 8,459 7,286 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 14 14 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 693,885 Justice Courts Grants and Fees $ 712,544 129 $ 836,346 $ 923,462 $ 15,100 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2016 Nonmajor Governmental Funds (Continued) June 30, 2016 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities National Forest Fees Parks and Recreation Grants and Fees $ $ 5,481,750 5,492,012 $ $ 76,979 Recorder Storage and Retrieval $ 385,282 119 12 1,115 153 715 $ 582,352 $ 53,756 5,978 443 137,428 $ 420,571 $ 70,917 5,966 $ 9,038 $ 4 113 10,262 $ 581,237 Public Defender Grants and Fees 34,562 113,799 13,703 53,875 113,799 14,971 105,557 62,913 117 5,378,213 476,795 443 74,072 420,454 5,378,213 476,795 74,515 420,454 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances $ 5,492,012 130 $ 582,352 $ 137,428 $ 420,571 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2016 Nonmajor Governmental Funds (Continued) June 30, 2016 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities School Superintendent Grants and Fees $ $ 220,212 Solid Waste $ 17,191 $ $ 3,465 617 72,869 743,396 34,375 2,351,629 134,759 131,636 96,391 16,154 Superior Court Grants and Fees $ 129 359,962 704 358 209,077 116,604 $ 487,224 $ 325,810 $ $ 10,097 26,753 $ 100,031 3,903 $ 286,282 4,020 475 651,801 52,729 14,458 62,757 221,860 101,767 99,607 325,794 168,954 34,375 1,966,656 387,617 16 475 482,372 2,001,031 387,617 16 482,847 112,545 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 238,053 238,053 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 1,480,333 Sheriff Grants and Fees $ 2,351,629 131 $ 487,224 $ 325,810 $ 651,801 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2016 Nonmajor Governmental Funds (Continued) June 30, 2016 Special Revenue Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities Taxpayer Information Fund $ 76,888 Other Special Revenue Funds Debt Service County Improvement Districts-Debt Service $ $ 153,644 756 147 111,705 $ 77,035 $ $ 1,551 $ 111,705 4,003 $ 350,095 $ 1,783 107,690 1,551 111,693 1,783 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 153,644 153,644 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances 195,695 $ 75,484 12 194,668 75,484 12 194,668 77,035 132 $ 111,705 $ 350,095 Coconino County Combining Balance Sheet Coconino County ajor Governmental Funds Combining Balance Sheet June 30, 2016 Nonmajor Governmental Funds (Continued) June 30, 2016 Assets Cash and cash equivalents Investments Cash and investments held by trustee Receivables (net of allowances for uncollectibles): Property taxes Accounts Special assessments Accrued interest Advances to other funds Due from: Other funds Other governments Prepaid items Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll and employee benefits Advances from other funds Due to: Other funds Other governments Deposits held for others Unearned revenue Total liabilities Accommodation School Capital Projects County Improvement Districts-Capital Projects Other Capital Projects Funds $ $ $ 110,661 211 426,462 73,004 982 3,006,198 72,014 $ 18,059,151 602,590 30,209 230,390 159,637 153,644 36,091 5,764 6,570 4,951 $ 115,823 $ 500,448 $ $ 1 $ 1 $ 3,090,546 2,088,252 1,379,869 37,561 $ 22,777,394 $ 779,741 352,273 1,001,783 2,130,276 1 32,412 14,971 4,311,456 1 Deferred Inflows of Resources Unavailable revenue Total deferred inflows of resources 609,363 609,363 Fund balances: Nonspendable Restricted Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances Total Nonmajor Governmental Funds $ 115,822 500,447 3,090,546 37,561 19,057,814 (1,238,800) 115,822 500,447 3,090,546 17,856,575 3,090,546 $ 22,777,394 115,823 133 $ 500,448 $ Coconino County Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year Ended June 30, 2016 Special Revenue Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Adult Probation Grants and Fees $ Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures $ Career Center Grants Clerk of the Superior Court Grants and Fees $ $ 2,219,770 636,569 9,801 754,918 28 55,902 4,729 2,866,140 754,946 60,631 1,580 2,878,535 98,908 813,348 2,878,535 Excess (deficiency) of revenues over expenditures 1,580 813,348 98,908 (1,580) (58,402) (38,277) 1,235 105,336 55,495 2,596 106,571 55,495 2,596 (2,907) (35,681) (12,395) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Fund balances, July 1, 2015 Fund balances, June 30, 2016 Assessor Storage and Retrieval 94,176 $ (1,580) 639,079 733,255 $ 134 9,630 8,050 $ 9,517 6,610 $ 385,503 349,822 Coconino County ent of Revenues, Coconino CountyExpenditures, in of Fund BalancesExpenditures, Combining Changes Statement Revenues, major Governmental and Changes in Fund Funds Balances ear Ended June 30, 2016 Nonmajor Governmental Funds (Continued) Year Ended June 30, 2016 Special Revenue Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Community Services Grants and Fees $ $ County Attorney Grants and Fees $ $ 11,198 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 1,048,933 21,592 3,799 84,330 71,039 1,229,693 8,387 41,127 589 513,747 444,971 31,893 24,589 1,174,925 18,897 50,103 1,015,200 21,653 1,226,673 2,686 64,815 904,270 1,426,322 1,889,802 1,892,488 Excess (deficiency) of revenues over expenditures (662,795) Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 846,506 (60,258) 786,248 Net changes in fund balances Fund balances, July 1, 2015 Fund balances, June 30, 2016 Conciliation Court County Improvement Districts-Special Revenue 904,270 (14,712) 110,930 1,426,322 (199,649) 258,146 (297,086) (38,940) 123,453 $ 64,815 (14,712) 10,579 134,032 $ 135 57,877 43,165 71,990 $ 781,720 853,710 (199,649) $ 1,539,827 1,340,178 Coconino County ent of Revenues, Coconino CountyExpenditures, in of Fund BalancesExpenditures, Combining Changes Statement Revenues, major Governmental and Changes in Fund Funds Balances ear Ended June 30, 2016 Nonmajor Governmental Funds (Continued) Year Ended June 30, 2016 Special Revenue Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues County Library District $ 3,925,585 5,682 $ Flood Control District Fund $ 2,438,276 Inmate Welfare $ 4,650 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 253,492 2,289,356 5,377 90,336 547 10,623 4,026,980 254,039 4,742,905 126,040 235,006 351,883 2,770,832 219,540 351,883 2,770,832 219,540 (97,844) 1,972,073 15,466 106,506 2,460 3,939,470 3,939,470 Excess (deficiency) of revenues over expenditures 87,510 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) (92,472) (92,472) Net changes in fund balances Fund balances, July 1, 2015 Fund balances, June 30, 2016 Emergency Services Grants (4,962) $ 166,322 161,360 $ 136 129,568 49,738 129,568 49,738 31,724 2,021,811 (171,392) (139,668) $ (3,120,943) (1,099,132) 15,466 $ 219,394 234,860 Coconino County ent of Revenues, Coconino CountyExpenditures, in of Fund BalancesExpenditures, Combining Changes Statement Revenues, major Governmental and Changes in Fund Funds Balances ear Ended June 30, 2016 Nonmajor Governmental Funds (Continued) Year Ended June 30, 2016 Special Revenue Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Jail Enhancement Justice Courts Grants and Fees Juvenile Court Grants and Fees Legal Defender Grants and Fees $ $ $ $ 22,547 206,541 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 8,955 523,858 8,781 1,989,217 54,405 12,242 215,496 555,186 253 2,056,117 157,504 171,045 Excess (deficiency) of revenues over expenditures 171,045 157,504 44,451 397,682 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Fund balances, July 1, 2015 Fund balances, June 30, 2016 44,451 $ $ 137 426,383 527,484 2,217 1,513 2,093,092 1,513 (36,975) 704 7,664 5,973 (5,708) 265 7,664 101,101 660,793 705,244 127 2,093,092 (296,581) (296,581) Net changes in fund balances 2,090 (29,311) $ 819,990 790,679 969 $ 7,490 8,459 Coconino County ent of Revenues, Coconino CountyExpenditures, in of Fund BalancesExpenditures, Combining Changes Statement Revenues, major Governmental and Changes in Fund Funds Balances ear Ended June 30, 2016 Nonmajor Governmental Funds (Continued) Year Ended June 30, 2016 Special Revenue Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues National Forest Fees Parks and Recreation Grants and Fees Public Defender Grants and Fees $ $ $ 2,500,941 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 62,172 85,000 402,096 7,400 2,563,113 14,680 509,176 Recorder Storage and Retrieval $ 20,107 1,251 48,818 123,641 4,615 21,358 177,074 28,069 51,009 495,681 1,068,247 1,068,247 495,681 28,069 51,009 Excess (deficiency) of revenues over expenditures 1,494,866 13,495 (6,711) 126,065 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 156,000 (1,057,884) (901,884) (106,150) (106,150) Net changes in fund balances Fund balances, July 1, 2015 Fund balances, June 30, 2016 592,982 $ 4,785,231 5,378,213 138 53,756 (53,756) (92,655) $ 569,450 476,795 (6,711) $ 81,226 74,515 126,065 $ 294,389 420,454 Coconino County ent of Revenues, Coconino CountyExpenditures, in of Fund BalancesExpenditures, Combining Changes Statement Revenues, major Governmental and Changes in Fund Funds Balances ear Ended June 30, 2016 Nonmajor Governmental Funds (Continued) Year Ended June 30, 2016 Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ 8 Sheriff Grants and Fees $ 3,898,555 52,013 21,899 72,618 321,343 4,366,436 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures Superior Court Grants and Fees Solid Waste $ $ 527,448 80,080 4,268 1,250 296,727 132,996 613,046 429,723 214,104 170,094 3,025 48,134 1,426 436,783 936,244 675,776 638,801 3,614,951 3,614,951 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 balances, July 1, 2015 Fund balances, June 30, 2016 Special Revenue School Superintendent Grants and Fees $ 675,776 638,801 936,244 751,485 (62,730) (209,078) (499,461) 72,869 209,077 72,869 155,353 (60,575) 94,778 500,376 (2,596) 497,780 824,354 32,048 1,176,677 2,001,031 $ 139 355,569 387,617 209,077 (1) $ 17 16 (1,681) $ 484,528 482,847 Coconino County ent of Revenues, Coconino CountyExpenditures, in of Fund BalancesExpenditures, Combining Changes Statement Revenues, major Governmental and Changes in Fund Funds Balances ear Ended June 30, 2016 Nonmajor Governmental Funds (Continued) Year Ended June 30, 2016 Special Revenue Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Taxpayer Information Fund $ Other Special Revenue Funds $ $ 46,653 15,229 975 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 1,564 16,204 153 1,717 11,498 50,316 5,001 51,654 63,106 Excess (deficiency) of revenues over expenditures 11,498 113,422 85,000 18,128 103,128 4,706 (111,705) (51,474) 111,705 11,019 (7,110) 3,909 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) 111,705 Net changes in fund balances Fund balances, July 1, 2015 Fund balances, June 30, 2016 Debt Service County Improvement Districts-Debt Service 4,706 $ (47,565) 70,778 75,484 $ 140 12 12 $ 242,233 194,668 Coconino County ent of Revenues, Coconino CountyExpenditures, in of Fund BalancesExpenditures, Combining Changes Statement Revenues, major Governmental and Changes in Fund Funds Balances ear Ended June 30, 2016 Nonmajor Governmental Funds (Continued) Year Ended June 30, 2016 Revenues: Property taxes County sales taxes Special assessments Licenses and permits Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Accommodation School Capital Projects County Improvement Districts-Capital Projects Other Capital Projects Funds Total Nonmajor Governmental Funds $ $ $ $ 1,434 9,406 35,955 65,409 691,923 701,329 35,955 6,363,869 5,682 57,851 4,650 536,294 16,873,350 3,624,490 257,775 307,838 1,248,510 29,280,309 9,004 2,308,412 9,160,703 63,106 2,065,123 2,703,150 4,435,151 4,683,198 665,144 63,975 Expenditures: Current: General government Public safety Highways and streets Sanitation Welfare Culture and recreation Education Capital outlay Debt service: Principal Interest and other charges Total expenditures 41,140 Excess (deficiency) of revenues over expenditures 615,000 41,140 615,000 9,004 85,000 18,128 26,187,115 24,269 86,329 26,951 3,093,194 486,247 (285,740) 200,507 6,570 6,570 1,235 3,223,994 (2,325,916) 899,313 286,836 33,521 3,992,507 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Fund balances, July 1, 2015 Fund balances, June 30, 2016 24,269 $ 91,553 115,822 $ 141 213,611 500,447 $ 3,057,025 3,090,546 $ 13,864,068 17,856,575 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Adult Probation Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: Public safety Adult Probation Total expenditures 2,234,649 600,000 5,050 2,839,699 $ 3,300,369 3,300,369 Excess (deficiency) of revenues over expenditures Actual Amounts Final 2,310,408 600,000 5,050 2,915,458 $ 3,257,314 3,257,314 (460,670) 2,219,770 636,569 9,801 2,866,140 Variance with Final BudgetPositive (Negative) $ 2,878,535 2,878,535 (90,638) 36,569 4,751 (49,318) 378,779 378,779 (341,856) (12,395) 329,461 283,068 163,198 1,235 105,336 1,235 (57,862) 283,068 163,198 106,571 (56,627) Net changes in fund balances (177,602) (178,658) 94,176 272,834 Fund balance, July 1, 2015 Fund balance, June 30, 2016 544,193 366,591 544,193 365,535 639,079 733,255 94,886 367,720 Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) $ 142 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Assessor Storage and Retrieval Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Total revenues $ Expenditures: General government Assessor Total expenditures Actual Amounts Final $ $ Variance with Final BudgetPositive (Negative) $ 9,912 9,912 9,630 9,630 1,580 1,580 8,050 8,050 (9,912) (9,630) (1,580) 8,050 Net changes in fund balances (9,912) (9,630) (1,580) 8,050 Fund balance, July 1, 2015 Fund balance, June 30, 2016 9,913 1 9,913 283 9,630 8,050 (283) 7,767 Excess (deficiency) of revenues over expenditures $ 143 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Career Center Grants Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Welfare Career Center Total expenditures Actual Amounts Final 1,060,619 $ 1,183,968 $ 1,060,619 1,183,968 754,918 28 754,946 1,116,895 1,116,895 1,240,244 1,240,244 813,348 813,348 Excess (deficiency) of revenues over expenditures (56,276) (56,276) (58,402) Other financing sources (uses): Transfers in Total other financing sources (uses) 55,495 55,495 55,495 55,495 55,495 55,495 Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 (781) $ 8,540 7,759 144 (781) $ 8,540 7,759 $ Variance with Final BudgetPositive (Negative) $ (429,050) 28 (429,022) 426,896 426,896 (2,126) (2,907) (2,126) 9,517 6,610 977 (1,149) $ 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, 2016 Budgeted Amounts Original Revenues: Fees, fines, and forfeits Charges for services Investment earnings Total revenues $ Expenditures: General government Clerk of the Superior Court Total expenditures Actual Amounts Final 100,000 50,300 2,000 152,300 $ 157,290 157,290 100,000 50,300 2,000 152,300 $ 157,290 157,290 Variance with Final BudgetPositive (Negative) 55,902 4,729 60,631 $ (100,000) 5,602 2,729 (91,669) 98,908 98,908 58,382 58,382 Excess (deficiency) of revenues over expenditures (4,990) (4,990) (38,277) (33,287) Other financing sources (uses): Transfers in Total other financing sources (uses) 12,581 12,581 12,581 12,581 2,596 2,596 (9,985) (9,985) 7,591 7,591 (35,681) (43,272) Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 400,189 407,780 145 $ 400,189 407,780 $ 385,503 349,822 $ (14,686) (57,958) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Services Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: General government Facilities Welfare Community Services Total expenditures Excess (deficiency) of revenues over expenditures Actual Amounts Final 1,394,115 249,997 2,000 114,016 1,800 1,761,928 $ 1,353,115 249,997 2,000 114,016 1,800 1,720,928 $ 1,048,933 21,592 3,799 84,330 71,039 1,229,693 (304,182) (228,405) 1,799 (29,686) 69,239 (491,235) 35,815 2,686 33,129 2,550,090 2,575,094 2,507,790 2,543,605 1,889,802 1,892,488 617,988 651,117 (813,166) (822,677) (662,795) 159,882 83,293 (60,258) 23,035 182,917 764,513 763,213 764,513 763,213 846,506 (60,258) 786,248 Net changes in fund balances (48,653) (59,464) 123,453 $ $ 25,004 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Fund balance, July 1, 2015 Fund balance, June 30, 2016 Variance with Final BudgetPositive (Negative) 153,593 104,940 146 $ 153,593 94,129 $ 10,579 134,032 $ (143,014) 39,903 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Conciliation Court Year Ended June 30, 2016 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, 2015 Fund balance, June 30, 2016 $ Actual Amounts Final 7,300 44,400 250 51,950 $ 8,500 44,400 250 53,150 $ 8,387 41,127 589 50,103 Variance with Final BudgetPositive (Negative) $ (113) (3,273) 339 (3,047) 85,449 85,449 86,649 86,649 64,815 64,815 21,834 21,834 (33,499) (33,499) (14,712) 18,787 (33,499) (33,499) (14,712) 18,787 55,037 21,538 147 $ 55,037 21,538 $ 57,877 43,165 $ 2,840 21,627 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Attorney Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Fees, fines, and forfeits Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: General government County Attorney Total expenditures Actual Amounts Final 450,000 469,008 37,142 7,250 963,400 $ 1,360,725 1,360,725 450,000 452,675 37,142 7,250 947,067 $ 1,256,111 1,256,111 513,747 444,971 31,893 24,589 1,015,200 Variance with Final BudgetPositive (Negative) $ 63,747 (7,704) (5,249) 17,339 68,133 904,270 904,270 351,841 351,841 419,974 Excess (deficiency) of revenues over expenditures (397,325) (309,044) 110,930 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 86,875 (35,002) 51,873 253,419 (297,110) (43,691) 258,146 (297,086) (38,940) Net changes in fund balances (345,452) (352,735) 71,990 424,725 Fund balance, July 1, 2015 Fund balance, June 30, 2016 530,828 185,376 530,828 178,093 781,720 853,710 250,892 675,617 $ 148 $ $ 4,727 24 4,751 $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Special Revenue Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Special assessments Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Sanitation KVID Total expenditures Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 11,400 1,170,600 9,465 20,000 1,211,465 $ 1,655,926 1,655,926 Excess (deficiency) of revenues over expenditures $ Actual Amounts Final 11,400 1,170,600 9,465 20,000 1,211,465 $ 1,655,926 1,655,926 11,198 1,174,925 18,897 21,653 1,226,673 Variance with Final BudgetPositive (Negative) $ 1,426,322 1,426,322 (202) 4,325 9,432 1,653 15,208 229,604 229,604 (444,461) (444,461) (199,649) 244,812 (444,461) (444,461) (199,649) 244,812 1,239,133 794,672 149 $ 1,239,133 794,672 $ 1,539,827 1,340,178 $ 300,694 545,506 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Library District Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Property taxes County sales taxes Investment earnings Contributions Total revenues $ Actual Amounts Final 3,936,314 3,936,314 3,925,585 5,682 5,377 90,336 4,026,980 3,843,842 3,843,842 3,843,842 3,843,842 3,939,470 3,939,470 (95,628) (95,628) Excess (deficiency) of revenues over expenditures 92,472 92,472 87,510 (4,962) Other financing sources (uses): Transfers out Total other financing sources (uses) (92,472) (92,472) (92,472) (92,472) (92,472) (92,472) Expenditures: Culture and recreation Library District Total expenditures 3,936,314 $ 3,936,314 $ Variance with Final BudgetPositive (Negative) Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ (4,962) $ 24,604 24,604 150 $ 24,604 24,604 $ 166,322 161,360 (10,729) 5,682 5,377 90,336 90,666 (4,962) $ 141,718 136,756 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Emergency Services Grants Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Contributions Miscellaneous Total revenues $ Actual Amounts Final 176,531 $ 363,984 $ 253,492 547 Variance with Final BudgetPositive (Negative) $ (110,492) 547 (65,000) (174,945) 65,000 241,531 65,000 428,984 340,293 65,000 405,293 339,433 65,000 404,433 351,883 351,883 (12,450) 65,000 52,550 Excess (deficiency) of revenues over expenditures (163,762) 24,551 (97,844) (122,395) Other financing sources (uses): Transfers in Total other financing sources (uses) 128,968 128,968 129,368 129,368 129,568 129,568 Net changes in fund balances (34,794) 153,919 31,724 Expenditures: Public safety County Manager Public Works Total expenditures Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 34,795 1 151 $ 34,795 188,714 254,039 $ (171,392) (139,668) 200 200 (122,195) $ (206,187) (328,382) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Flood Control District Fund Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Property taxes Licenses and permits Intergovernmental Contributions Total revenues $ Expenditures: Public Safety Flood Control Total expenditures 2,445,058 $ 2,445,058 514,726 8,063 2,967,847 514,726 8,063 2,967,847 2,438,276 4,650 2,289,356 10,623 4,742,905 3,015,085 3,015,085 3,018,042 3,018,042 2,770,832 2,770,832 247,210 247,210 1,972,073 2,022,268 49,738 49,738 2,500 2,500 2,021,811 2,024,768 Excess (deficiency) of revenues over expenditures (47,238) (50,195) Other financing sources (uses): Transfers in Total other financing sources (uses) 47,238 47,238 47,238 47,238 Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 Actual Amounts Final $ (2,957) $ Variance with Final BudgetPositive (Negative) 41,778 41,778 152 $ 41,778 38,821 $ (3,120,943) (1,099,132) $ $ (6,782) 4,650 1,774,630 2,560 1,775,058 (3,162,721) (1,137,953) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Inmate Welfare Year Ended June 30, 2016 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, 2015 Fund balance, June 30, 2016 $ Actual Amounts Final 110,000 2,000 140,250 252,250 $ 110,000 2,000 140,250 252,250 $ 106,506 2,460 126,040 235,006 Variance with Final BudgetPositive (Negative) $ (3,494) 460 (14,210) (17,244) 374,142 374,142 374,142 374,142 219,540 219,540 154,602 154,602 (121,892) (121,892) 15,466 137,358 (121,892) (121,892) 15,466 137,358 179,434 57,542 153 $ 179,434 57,542 $ 219,394 234,860 $ 39,960 177,318 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Jail Enhancement Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Public safety Sheriff Total expenditures Actual Amounts Final 213,518 2,500 216,018 $ 213,518 2,500 216,018 $ 206,541 8,955 215,496 Variance with Final BudgetPositive (Negative) $ (6,977) 6,455 (522) 667,385 667,385 667,385 667,385 171,045 171,045 496,340 496,340 (451,367) (451,367) 44,451 495,818 Net changes in fund balances (451,367) (451,367) 44,451 495,818 Fund balance, July 1, 2015 Fund balance, June 30, 2016 602,657 151,290 602,657 151,290 660,793 705,244 58,136 553,954 Excess (deficiency) of revenues over expenditures $ 154 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Justice Courts Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Fees, fines, and forfeits Charges for services Investment earnings Total revenues $ Expenditures: General government Flagstaff Justice Court Fredonia Justice Court Page Justice Court Williams Justice Court Total expenditures Actual Amounts Final 43,300 423,155 10,650 477,105 $ 43,300 423,155 10,650 477,105 $ 22,547 523,858 8,781 555,186 Variance with Final BudgetPositive (Negative) $ (20,753) 100,703 (1,869) 78,081 215,651 19,100 33,846 51,929 320,526 215,651 19,100 33,846 51,929 320,526 100,018 6,607 17,670 33,209 157,504 115,633 12,493 16,176 18,720 163,022 Excess (deficiency) of revenues over expenditures 156,579 156,579 397,682 241,103 Other financing sources (uses): Transfers out Total other financing sources (uses) (264,803) (264,803) (264,803) (264,803) (296,581) (296,581) (31,778) (31,778) Net changes in fund balances (108,224) (108,224) 101,101 209,325 Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 430,972 322,748 155 $ 430,972 322,748 $ 426,383 527,484 $ (4,589) 204,736 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Juvenile Court Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Expenditures: Public safety Juvenile Probation Total expenditures 2,105,068 51,310 5,000 1,000,000 3,161,378 Excess (deficiency) of revenues over expenditures (887,153) Other financing sources (uses): Transfers in Total other financing sources (uses) 160,320 160,320 Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 4,048,531 4,048,531 Net changes in fund balances 729,785 2,952 156 2,031,050 51,310 3,600 1,000,000 3,085,960 $ 3,799,049 3,799,049 676,114 (2,153) (2,153) (29,311) $ 819,990 790,679 (41,833) 3,095 8,642 (999,747) (1,029,843) 1,705,957 1,705,957 7,664 7,664 (703,272) 729,785 26,513 $ (36,975) 9,817 9,817 $ 1,989,217 54,405 12,242 253 2,056,117 2,093,092 2,093,092 (713,089) (726,833) $ Actual Amounts Final Variance with Final BudgetPositive (Negative) 673,961 $ 90,205 764,166 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Legal Defender Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: General government Legal Defender Total expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 2,000 71 2,071 $ 2,455 2,455 Excess (deficiency) of revenues over expenditures $ Actual Amounts Final 2,000 71 2,071 2,455 2,455 (384) (384) 5,317 (5,727) (410) 5,317 (5,727) (410) (794) (794) 6,419 5,625 157 $ $ 6,419 5,625 2,090 127 2,217 Variance with Final BudgetPositive (Negative) $ 1,513 1,513 942 942 704 1,088 5,973 (5,708) 265 656 19 675 969 $ 90 56 146 7,490 8,459 1,763 $ 1,071 2,834 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual National Forest Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues Actual Amounts Final $ $ 1,300 1,300 $ 1,300 1,300 Expenditures: Education School Superintendent Total expenditures Excess (deficiency) of revenues over expenditures 1,300 1,300 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) (1,067,138) (1,067,138) (1,046,418) (1,046,418) Net changes in fund balances (1,065,838) (1,045,118) Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 3,028,722 1,962,884 158 $ 3,028,722 1,983,604 2,500,941 62,172 2,563,113 Variance with Final BudgetPositive (Negative) $ 1,068,247 1,068,247 (1,068,247) (1,068,247) 1,494,866 1,493,566 156,000 (1,057,884) (901,884) 156,000 (11,466) 144,534 592,982 $ 2,500,941 60,872 2,561,813 4,785,231 5,378,213 1,638,100 $ 1,756,509 3,394,609 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Parks and Recreation Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Miscellaneous Total revenues $ Actual Amounts Final 7,500 581,394 7,500 590,081 85,000 402,096 7,400 14,680 509,176 496,435 496,435 496,251 496,251 495,681 495,681 Excess (deficiency) of revenues over expenditures 84,959 93,830 13,495 Other financing sources (uses): Transfers out Total other financing sources (uses) (106,150) (106,150) (106,150) (106,150) (106,150) (106,150) (21,191) (12,320) (92,655) Expenditures: Culture and recreation Parks and Recreation Total expenditures Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 164,794 409,100 505,559 484,368 159 $ $ 173,481 409,100 505,559 493,239 $ $ 569,450 476,795 Variance with Final BudgetPositive (Negative) $ (88,481) (7,004) 7,400 7,180 (80,905) 570 570 (80,335) (80,335) $ 63,891 (16,444) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Public Defender Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: General government Public Defender Total expenditures Actual Amounts Final 16,000 700 16,700 $ 16,000 700 16,700 $ 20,107 1,251 21,358 Variance with Final BudgetPositive (Negative) $ 4,107 551 4,658 30,000 30,000 30,000 30,000 28,069 28,069 1,931 1,931 (13,300) (13,300) (6,711) 6,589 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 47,855 (47,855) 47,855 (47,855) 53,756 (53,756) 5,901 (5,901) Net changes in fund balances (13,300) (13,300) (6,711) 6,589 Excess (deficiency) of revenues over expenditures Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 73,340 60,040 160 $ 73,340 60,040 $ 81,226 74,515 $ 7,886 14,475 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Recorder Storage and Retrieval Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Total revenues $ Expenditures: General government Recorder Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ Actual Amounts Final 51,665 130,000 900 182,565 $ 51,665 130,000 900 182,565 $ 48,818 123,641 4,615 177,074 Variance with Final BudgetPositive (Negative) $ $ (2,847) (6,359) 3,715 (5,491) 250,977 250,977 254,155 254,155 51,009 51,009 203,146 203,146 (68,412) (71,590) 126,065 197,655 (68,412) (71,590) 126,065 197,655 277,907 209,495 161 $ 277,907 206,317 $ 294,389 420,454 $ 16,482 214,137 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual School Superintendent Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Property taxes Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues Actual Amounts Final $ 3,405,170 45,000 350 30,000 150,000 3,630,520 4,062,093 45,000 350 70,276 150,000 4,327,719 8 3,898,555 52,013 21,899 72,618 321,343 4,366,436 3,117,532 3,117,532 3,839,289 3,839,289 3,614,951 3,614,951 224,338 224,338 Excess (deficiency) of revenues over expenditures 512,988 488,430 751,485 263,055 Other financing sources (uses): Transfers in Total other financing sources (uses) 70,671 70,671 70,671 70,671 72,869 72,869 583,659 559,101 824,354 Expenditures: Education School Superintendent Total expenditures Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ $ 1,491,649 2,075,308 162 $ $ Variance with Final BudgetPositive (Negative) 1,491,649 2,050,750 $ 1,176,677 2,001,031 $ 8 (163,538) 7,013 21,549 2,342 171,343 38,717 (2,198) (2,198) 265,253 $ (314,972) (49,719) Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Sheriff Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: Public safety Sheriff Total expenditures 752,716 61,439 1,400 5,000 2,789,000 3,609,555 $ 3,763,065 3,763,065 Excess (deficiency) of revenues over expenditures 803,047 61,439 1,400 5,000 2,757,390 3,628,276 527,448 80,080 4,268 1,250 $ 613,046 (275,599) 18,641 2,868 (3,750) (2,757,390) (3,015,230) 675,776 675,776 3,273,106 3,273,106 (153,510) (320,606) (62,730) 257,876 118,022 155,353 (60,575) 94,778 (60,373) (60,373) 32,048 197,503 118,022 215,726 (60,575) 155,151 Net changes in fund balances (35,488) (165,455) $ $ 3,948,882 3,948,882 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Fund balance, July 1, 2015 Fund balance, June 30, 2016 Actual Amounts Final Variance with Final BudgetPositive (Negative) 446,225 410,737 163 $ 446,225 280,770 $ 355,569 387,617 $ (90,656) 106,847 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Solid Waste Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Total revenues $ Expenditures: Sanitation Public Works Total expenditures Actual Amounts Final 255,000 129,470 384,470 $ 255,000 129,470 384,470 Variance with Final BudgetPositive (Negative) $ 296,727 132,996 429,723 $ 41,727 3,526 45,253 665,285 665,285 685,885 685,885 638,801 638,801 47,084 47,084 Excess (deficiency) of revenues over expenditures (280,815) (301,415) (209,078) 92,337 Other financing sources (uses): Transfers in Total other financing sources (uses) 318,868 318,868 309,088 309,088 209,077 209,077 (100,011) (100,011) 38,053 7,673 (1) (7,674) 7,673 17 16 17 (7,657) Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 38,053 164 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Superior Court Grants and Fees Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Charges for services Investment earnings Contributions Miscellaneous Total revenues $ Expenditures: General government Superior Courts Total expenditures Actual Amounts Final 173,789 151,000 850 59,000 34,400 419,039 $ 1,016,423 1,016,423 227,784 151,000 850 59,000 34,400 473,034 $ 1,055,871 1,055,871 214,104 170,094 3,025 48,134 1,426 436,783 Variance with Final BudgetPositive (Negative) $ (13,680) 19,094 2,175 (10,866) (32,974) (36,251) 936,244 936,244 119,627 119,627 Excess (deficiency) of revenues over expenditures (597,384) (582,837) (499,461) 83,376 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 485,855 (12,581) 473,274 485,855 (12,581) 473,274 500,376 (2,596) 497,780 14,521 9,985 24,506 (124,110) (109,563) (1,681) 107,882 Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 430,264 306,154 165 $ 430,264 320,701 $ 484,528 482,847 $ 54,264 162,146 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Taxpayer Information Fund Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Charges for services Investment earnings Total revenues $ Expenditures: General government Treasurer Total expenditures Actual Amounts Final 16,500 1,250 17,750 $ 16,500 1,250 17,750 $ 15,229 975 16,204 Variance with Final BudgetPositive (Negative) $ (1,271) (275) (1,546) 31,000 31,000 31,000 31,000 11,498 11,498 19,502 19,502 (13,250) (13,250) 4,706 17,956 Net changes in fund balances (13,250) (13,250) 4,706 17,956 Fund balance, July 1, 2015 Fund balance, June 30, 2016 52,600 39,350 52,600 39,350 70,778 75,484 18,178 36,134 Excess (deficiency) of revenues over expenditures $ 166 $ $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Special Revenue Funds Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Charges for services Miscellaneous Total revenues $ Actual Amounts Final 7,000 7,000 1,564 153 1,717 54,478 54,478 50,316 4,162 66,259 120,737 67,279 121,757 63,106 113,422 4,173 8,335 Excess (deficiency) of revenues over expenditures (113,737) (114,757) (111,705) 3,052 Other financing sources (uses): Transfers in Total other financing sources (uses) 113,737 113,737 113,737 113,737 111,705 111,705 (2,032) (2,032) Expenditures: General government Finance/Budget Highways and streets Public Works Total expenditures 7,000 $ Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 7,000 $ Variance with Final BudgetPositive (Negative) $ (1,020) $ $ 167 (1,020) (5,436) 153 (5,283) 1,020 $ 12 12 $ 12 1,032 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Debt Service Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Special assessments Investment earnings Total revenues $ Expenditures: Debt service: Principal Interest and other charges Total expenditures Actual Amounts Final 103,150 $ 103,150 $ 103,150 103,150 46,653 5,001 51,654 85,000 18,150 103,150 85,000 18,150 103,150 85,000 18,128 103,128 Variance with Final BudgetPositive (Negative) $ (56,497) 5,001 (51,496) 22 22 Excess (deficiency) of revenues over expenditures (51,474) (51,474) Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 11,019 (7,110) 3,909 (11,019) 7,110 (3,909) (47,565) (47,565) Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 247,529 247,529 168 $ 247,529 247,529 $ 242,233 194,668 $ (5,296) (52,861) 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, 2016 Budgeted Amounts Original Revenues: County sales taxes Investment earnings Miscellaneous Total revenues $ Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ Actual Amounts Final $ $ 27,012 186,421 Variance with Final BudgetPositive (Negative) $ 27,012 162,421 (1,972) 187,461 24,000 1,972 25,972 24,000 1,972 25,972 10,612,018 10,612,018 13,654,607 13,654,607 (10,586,046) (13,628,635) (994,417) 12,634,218 (10,586,046) (13,628,635) (994,417) 12,634,218 11,291,567 705,521 169 $ 11,291,567 (2,337,068) 213,433 1,207,850 1,207,850 14,564,538 $ 13,570,121 12,446,757 12,446,757 3,272,971 $ 15,907,189 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Accommodation School Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Intergovernmental Investment earnings Total revenues $ Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Net changes in fund balances Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ Actual Amounts Final 63,754 679 64,433 $ 63,754 679 64,433 $ 63,975 1,434 65,409 Variance with Final BudgetPositive (Negative) $ 221 755 976 56,500 56,500 56,500 56,500 41,140 41,140 15,360 15,360 7,933 7,933 24,269 16,336 7,933 7,933 24,269 16,336 88,486 96,419 170 $ 88,486 96,419 $ 91,553 115,822 $ 3,067 19,403 Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual County Improvement Districts - Capital Projects Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Investment earnings Miscellaneous Total revenues Actual Amounts Final $ $ Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures $ Fund balance, July 1, 2015 Fund balance, June 30, 2016 $ 212,240 212,240 171 $ $ 9,406 691,923 701,329 615,000 615,000 615,000 615,000 (615,000) 86,329 701,329 486,247 (285,740) 200,507 486,247 (285,740) 200,507 (615,000) 286,836 901,836 212,240 (402,760) 213,611 500,447 1,371 903,207 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net changes in fund balances 9,406 691,923 701,329 Variance with Final BudgetPositive (Negative) $ $ Coconino County Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Other Capital Projects Funds Year Ended June 30, 2016 Budgeted Amounts Original Revenues: Investment earnings Total revenues $ Expenditures: Capital outlay Total expenditures Actual Amounts Final 10,000 10,000 $ 10,000 10,000 $ 35,955 35,955 Variance with Final BudgetPositive (Negative) $ 25,955 25,955 475,890 475,890 623,568 623,568 9,004 9,004 614,564 614,564 Excess (deficiency) of revenues over expenditures (465,890) (613,568) 26,951 640,519 Other financing sources (uses): Transfers in Total other financing sources (uses) 475,890 475,890 623,569 623,569 6,570 6,570 (616,999) (616,999) Net changes in fund balances 10,000 10,001 33,521 23,520 Fund balance, July 1, 2015 Fund balance, June 30, 2016 3,038,484 3,048,484 3,038,484 3,048,485 3,057,025 3,090,546 18,541 42,061 $ 172 $ $ $ Coconino County Combining Statement of Fiduciary Net Position Investment Trust Funds June 30, 2016 Individual Investment Accounts Treasurer's Investment Pool Assets Cash and cash equivalents Interest and dividends receivable Total assets $ 119,787,461 253,426 120,040,887 $ $ 120,040,887 $ 2,511,047 Total Investment Trust Funds $ 122,298,508 253,426 122,551,934 $ 122,551,934 2,511,047 Liabilities Total liabilities Net position Held in trust for investment trust participants 173 2,511,047 Coconino County Combining Statement of Changes in Fiduciary Net Position Investment Trust Funds Year Ended June 30, 2016 Individual Investment Accounts Treasurer's Investment Pool Additions: Contribution from participants Investment earnings Total additions $ Deductions: Distributions to participants Total deductions Change in net position Net position, July 1, 2015 Net position, June 30, 2016 $ 240,600,899 1,729,778 242,330,677 2,566,694 243,167,593 1,729,778 244,897,371 223,785,125 223,785,125 218,497 218,497 224,003,622 224,003,622 18,545,552 2,348,197 20,893,749 101,495,335 162,850 101,658,185 120,040,887 174 $ $ 2,566,694 Total Investment Trust Funds 2,511,047 $ $ 122,551,934 Coconino County Statement of Changes in Assets and Liabilities Agency Fund Year Ended June 30, 2016 Assets Cash and cash equivalents Cash and investments held by trustee Total assets Balance July 1, 2015 Additions Deletions $ 1,835,811 950,113 $ 2,785,924 $ 69,145,792 1,538,225 $ 70,684,017 $ 69,275,229 1,421,622 $ 70,696,851 $ Liabilities Deposits held for others Due to other governments Total liabilities $ 2,514,606 271,318 $ 2,785,924 $ 67,100,873 3,583,143 $ 70,684,016 $ 67,094,944 3,601,906 $ 70,696,850 $ 175 Balance June 30, 2016 $ $ 1,706,374 1,066,716 2,773,090 2,520,535 252,555 2,773,090 THIS PAGE BLANK 176 STATISTICAL SECTION 177 THIS PAGE BLANK 178 Coconino County Statistical Section Year Ended June 30, 2016 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. ......................................................... 181-185 Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local revenue source, the property tax. .............................................................................................. 186-189 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. ..................................................................... 190-192 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. .............................................. 193-195 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. .................................................................... 196-200 179 THIS PAGE BLANK 180 Coconino County Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ 150,901,461 Primary government: Governmental activities Invested in capital assets, 129,694,889 $ 128,372,030 $ 145,814,515 $ 142,964,843 $ 145,559,259 $ 145,480,845 $ 149,872,339 Restricted net of related debt $ 36,994,894 29,929,358 28,345,559 28,386,829 63,914,015 65,858,399 63,564,437 69,537,246 74,284,443 67,370,287 Unrestricted 64,103,998 52,345,917 52,251,638 53,636,533 22,113,670 23,547,699 22,747,752 18,591,785 (86,379,130) (77,733,568) 210,292,086 $ 210,395,392 $ 231,842,200 $ 232,370,941 $ 231,871,448 $ 233,609,876 Total governmental activities net position Source: Note: $ 106,913,167 208,012,059 $ $ 128,198,350 210,473,625 $ $ $ 137,777,652 Coconino County Single Audit Reporting Package Due to the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions , in fiscal year 2015, net position for the year ended June 30, 2014 was restated, however this change was not reflected in this schedule. 181 $ 140,538,180 Coconino County Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal year 2007 2008 2009 2010 Expenses Governmental activities: General government $ 30,137,861 $ 32,252,372 $ 32,364,030 $ 31,501,241 Public safety 29,170,427 32,282,534 33,164,905 31,592,406 Highways and streets 18,699,298 17,990,951 16,655,737 15,639,291 3,138,878 3,216,176 3,274,456 3,138,985 Health 11,575,909 12,192,703 12,692,864 11,216,546 Welfare 5,902,878 6,666,186 7,615,522 8,273,139 Culture and recreation 5,628,042 6,957,602 7,814,879 7,725,556 Education 3,816,081 4,437,125 4,892,986 5,278,556 1,602,303 603,969 512,256 414,902 Sanitation Transportation Interest on long term debt Defeasance of long-term debt 832,030 Total expenses $ 109,671,677 $ 117,431,648 $ 118,987,635 $ 114,780,622 Program Revenues Governmental activities: Charges for services: General government 4,322,299 8,273,916 7,316,495 7,169,300 Public safety 4,132,207 2,986,695 3,421,790 3,679,918 Highways and streets 3,459,682 74,556 1,152,294 69,689 Sanitation 1,437,621 1,375,478 1,375,437 1,321,418 Health 1,520,902 1,340,236 1,316,870 1,247,031 Welfare 1,599,249 1,337,392 1,262,876 2,101,024 Culture and recreation 1,188,201 1,159,535 1,170,109 794,306 107,301 115,216 95,016 116,020 33,695,469 34,185,253 34,581,839 34,922,841 134,120 898,314 118,520 Education Transportation Operating grants and contributions Capital grants and contributions 84,811 Total governmental activities program revenues $ 51,597,051 $ 51,746,591 $ 51,811,246 $ 51,506,358 Net (expenses) revenues $ (58,074,626) $ (65,685,057) $ (67,176,389) $ (63,274,264) General Revenues and Other Changes in Net Assets Governmental activities: Property taxes, levied for general purposes 7,011,847 7,180,218 7,935,524 Property taxes, levied for library 1,263,035 3,847,035 4,708,037 5,107,399 Property taxes, levied for flood control 2,860,021 1,510,077 2,011,055 1,959,193 189,318 4,310 Property taxes, levied for accommodation school 8,185,332 Property taxes, levied for health services General county sales tax 12,384,595 12,445,915 11,497,627 10,774,208 Jail District sales tax 9,691,689 12,395,931 11,486,443 10,791,078 Parks and open spaces sales tax 3,076,949 3,105,737 2,871,495 2,689,346 Excise tax 111,593 102,863 92,118 68,688 Franchise tax 134,640 46,966 41,944 39,207 18,125,003 17,000,598 15,287,328 14,353,390 5,695,838 5,622,049 5,240,676 4,971,307 1,646,585 1,727,679 2,866,290 2,139,437 4,489,537 2,726,375 2,388,053 2,090,720 158,415 209,636 2,100 130,889 23,279 225,544 376,842 73,066 Road sales tax Shared revenue - state sales tax Shared revenue - state vehicle license tax Grants and contributions not restricted to specific programs Investment earnings Gain (loss) on disposal of capital assets Miscellaneous Donated capital (7,282,396) Total general revenues $ 59,390,630 $ 68,146,623 $ Change in net position $ 1,316,004 $ 2,461,566 $ Source: 66,994,850 Coconino County Single Audit Reporting Package 182 (181,539) $ 63,377,570 $ 103,306 Fiscal year 2011 $ 2012 30,768,963 $ 2013 31,590,773 $ 2014 32,049,113 $ 2015 29,994,545 $ 2016 34,766,812 $ 33,869,932 36,552,608 33,763,301 37,609,509 42,122,131 42,398,679 40,947,920 13,811,657 15,955,413 15,958,230 14,058,678 14,906,659 21,815,377 3,151,415 3,088,446 2,102,071 1,611,107 2,007,358 2,235,478 11,045,264 11,550,850 12,199,793 13,735,528 13,915,744 13,180,529 8,284,852 6,907,365 6,642,756 4,932,758 4,486,667 4,254,709 7,286,373 7,243,089 7,063,893 6,594,783 6,682,930 7,172,432 4,767,625 5,232,363 5,941,255 7,332,953 6,708,189 5,336,344 178,025 69,723 46,622 24,582 18,128 287,272 $ 115,956,029 $ 115,509,625 $ 119,636,343 $ 120,429,105 $ 125,897,620 $ 128,830,849 6,022,842 4,995,911 4,465,482 4,868,512 4,737,629 5,751,943 3,821,300 3,272,289 3,107,973 2,937,416 2,538,879 3,159,188 93,370 93,636 99,728 54,445 114,459 72,866 1,386,848 1,402,290 1,346,328 1,342,276 1,327,150 1,348,145 1,151,680 1,181,490 1,301,249 1,353,915 1,463,783 1,143,207 1,905,924 1,802,447 1,467,637 795,045 243,096 123,744 865,254 760,863 850,519 838,718 879,799 810,926 130,681 113,749 171,298 183,275 180,507 373,206 39,900,147 32,332,327 36,156,108 35,999,361 38,184,459 32,558,181 6,320,016 13,130 14,217 6,821 (1,892) 701,451 $ 61,598,062 $ 45,968,132 $ 48,964,430 $ 48,387,180 $ 49,676,582 $ 46,042,857 $ (54,357,967) $ (69,541,493) $ (70,671,913) $ (72,041,925) $ (76,221,038) $ (82,787,992) 8,405,307 8,807,267 8,744,783 9,040,033 9,023,305 9,511,567 4,879,638 4,313,244 4,157,084 3,906,545 3,848,918 3,924,459 1,849,054 3,179,252 2,943,787 2,462,802 2,425,568 2,444,129 275 142 33 4,923,145 4,801,721 4,390,334 11,118,458 11,369,591 11,705,643 (18) 8 8 3,816,050 3,761,327 3,847,788 12,271,635 13,579,820 14,123,077 3,778,550 8,426,665 14,127,110 11,109,910 11,368,185 11,699,874 12,270,130 13,576,136 2,775,886 2,832,704 2,923,093 3,065,409 997,627 27,012 118,795 107,980 74,510 83,589 70,356 139,804 36,969 36,788 47,198 58,608 94,022 97,267 15,670,801 17,208,420 18,592,227 19,067,396 19,995,985 21,004,646 4,932,200 4,676,609 3,082,023 3,180,936 3,301,848 3,570,541 1,974,042 1,930,854 1,902,703 2,616,490 2,484,148 2,822,490 684,904 1,162,458 1,420,929 700,571 1,037,145 1,037,009 111,114 (316,192) (882,441) 42,869 453,292 218,749 354,668 55,430 182,451 66,527 86,637 90,144 5,169,268 $ 74,796,775 $ 70,968,204 $ $ 20,438,808 $ 1,426,711 $ 70,172,420 (499,493) $ 73,780,353 $ 77,943,575 $ 85,548,520 $ 1,738,428 $ 1,722,537 $ 2,760,528 183 Coconino County Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2007 2008 2009 2010 2011 1 2012 2013 2014 2015 2016 General Fund Reserved $ Unreserved 60,623 $ 33,986,837 133,364 $ 27,495,342 173,499 $ 24,956,598 40,720 $ $ $ $ $ $ 22,206,572 Nonspendable 85,029 1,509,973 1,541,383 1,556,369 Restricted 1,517,238 1,055,053 15,000 Unassigned Total general fund $ 34,047,460 $ 27,628,706 $ 25,130,097 $ 22,247,292 26,368,723 $ 26,453,752 28,450,416 $ 29,960,389 29,184,907 $ 30,726,290 26,643,317 $ 28,214,686 26,126,347 $ 27,643,585 $ 28,961,573 30,016,626 All other governmental funds Reserved $ 7,954,393 $ 549,455 $ 384,735 $ 592,136 $ $ $ $ $ $ Unreserved, reported in: Special revenue funds Capital project funds Debt service fund 39,555,023 41,731,738 52,444,661 58,066,418 1,968,757 10,265,707 1,176,745 842,548 12,318,744 15,066 46 Nonspendable Restricted Unassigned Total all other governmental funds Source: $ 61,796,917 $ 52,561,966 $ 54,006,187 $ 59,501,102 84,711 271,992 231,804 139,493 104,770 117,597 58,606,383 60,899,020 61,776,253 69,921,012 74,212,850 67,763,379 $ 58,691,094 $ 61,171,012 $ 62,008,057 Coconino County Single Audit Reporting Package 1 Due to implementation of GASB 54 in FY 2011, categories regarding fund balances have been redefined. See Note 1 of Notes to Basic Financial Statements. 184 (2,077,795) $ 67,982,710 (3,303,500) $ 71,014,120 $ (1,238,800) 66,642,176 Coconino County Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenues: Property taxes $ County sales taxes 10,944,924 $ 12,447,359 $ 14,683,323 $ 15,286,914 $ 19,877,174 $ 21,134,274 $ 20,320,244 $ 19,255,927 $ 18,966,331 $ 19,701,750 31,096,502 33,726,601 31,235,155 29,334,804 30,092,941 30,395,929 26,455,658 27,750,211 32,096,706 Special assessments 800,422 697,085 533,246 567,822 528,262 443,889 454,223 232,948 137,434 57,851 Licenses and permits 2,412,270 2,028,139 1,596,184 1,531,423 1,544,071 2,080,424 1,428,438 1,585,215 1,520,047 1,721,229 Fees, fines, and forfeits 36,952,588 1,958,043 2,426,546 2,636,342 2,475,047 1,912,702 1,536,208 1,434,276 1,890,338 1,609,332 1,887,642 Intergovernmental 52,924,453 52,807,937 52,131,109 51,035,314 61,706,361 51,173,921 60,388,098 60,348,857 60,921,308 61,905,784 Charges for services 12,413,030 11,059,144 10,616,158 11,421,254 11,176,829 9,280,931 8,764,702 7,751,499 7,004,301 6,923,006 Investment earnings 5,076,801 3,426,238 2,941,346 2,547,186 894,731 1,450,443 1,713,752 1,038,111 1,264,077 Contributions 420,695 638,673 498,811 654,529 582,801 629,849 674,720 658,818 600,116 679,203 Miscellaneous 681,321 644,530 1,039,999 411,152 547,255 491,740 613,048 531,987 565,043 1,439,331 $ 118,728,461 $ 119,902,252 $ 117,911,673 $ 115,265,445 $ 128,863,127 $ 118,617,608 $ 120,172,715 $ 121,719,552 $ 124,458,729 $ 132,532,461 $ $ $ $ $ $ $ $ $ $ Total revenues (360,692) Expenditures: Current: General government 29,462,096 31,775,048 31,104,566 30,537,222 30,019,684 30,768,104 31,049,633 29,107,514 31,139,164 31,421,859 Public safety 28,039,150 31,240,851 31,381,596 30,336,374 36,611,002 34,375,074 39,373,290 45,050,982 43,662,534 48,707,702 Highways and streets 19,756,618 16,548,734 16,992,456 13,181,875 10,912,173 12,105,577 13,312,515 10,949,715 13,734,826 22,936,771 2,880,863 3,154,224 3,146,581 2,978,416 2,919,328 2,874,688 1,820,482 1,413,555 1,941,069 2,065,123 11,403,856 12,077,635 12,361,518 10,956,358 10,795,196 11,338,648 12,036,240 13,528,580 13,091,067 12,723,241 Welfare 5,993,228 6,605,519 7,517,819 8,149,363 8,109,040 6,806,132 6,464,632 4,936,174 4,091,392 4,024,951 Culture and recreation 5,727,983 8,320,721 8,045,985 7,607,898 19,136,103 6,650,038 6,122,803 5,986,724 6,598,582 5,924,896 Education 3,618,428 4,273,975 4,730,288 5,110,500 4,727,587 5,085,903 5,783,644 7,176,253 6,456,550 5,141,470 359,940 1,711,967 1,434,116 771,393 1,049,137 148,465 2,213,866 147,146 1,281,468 1,872,994 Principal 4,303,256 18,545,471 2,508,901 2,637,213 2,255,923 2,353,289 396,669 415,808 105,144 85,000 Interest and other charges 1,602,303 1,435,999 512,256 414,902 287,272 178,025 69,723 46,622 24,582 18,128 $ 113,147,721 $ 135,690,144 $ 119,736,082 $ 112,681,514 $ 126,822,445 $ 112,683,943 $ 118,643,497 $ 118,759,073 $ 122,126,378 $ 134,922,135 2,583,931 2,040,682 5,933,665 1,529,218 2,960,479 2,332,351 Sanitation Health Capital outlay Debt service: Total expenditures Excess (deficiency) of revenues over expenditures 5,580,740 (15,787,892) (1,824,409) (2,389,674) Other financing sources (uses): Capital lease agreement $ Sale of capital assets $ 368,694 Bond proceeds $ Transfers out Total other financing sources and uses Net changes in fund balances $ 1,329,950 $ 20,194 $ 502,570 $ 127,958 90,011 37,093,497 15,481,676 15,042,578 21,912,454 14,661,648 14,454,693 14,188,062 15,427,307 22,706,214 (12,934,995) (36,982,221) (15,508,755) (15,042,578) (21,894,634) (14,608,758) (14,401,159) (14,188,062) (15,427,307) (22,766,789) 5,157,884 28,179 $ 12,934,995 (422,856) $ $ 2,100 (791,550) Transfers in $ 22,911 361,335 795,000 134,187 $ (15,653,705) 770,021 $ (1,054,388) 28,179 $ 2,612,110 1,347,770 $ 3,388,452 52,890 $ 5,986,555 73,728 $ 1,602,946 502,570 $ 3,463,049 127,958 $ 2,460,309 390,771 $ (1,998,903) Debt service as a percentage of noncapital expenditures 5.53% Source: Note: 17.53% 2.62% 2.80% Coconino County Single Audit Reporting Package Financial statement amounts adjusted to show Capital Outlay in FY 2006 through 2008 185 2.06% 2.30% 0.42% 0.41% 0.12% 0.08% Coconino County Assessed Value and Estimated Market Value of Taxable Property Last Ten Years Property Values Assessed Fiscal Year Ended June 30, Secured Unsecured Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1,288,341,613 1,458,940,955 1,605,854,299 1,694,104,159 1,607,918,353 1,714,437,231 1,714,436,551 1,475,006,428 1,478,590,523 1,545,641,492 225,916,527 229,241,854 234,920,747 224,614,413 232,224,257 45,163,364 45,173,364 58,058,854 55,893,415 56,698,420 1,514,258,140 1,688,182,809 1,840,775,046 1,918,718,572 1,840,142,610 1,759,600,595 1,759,609,915 1,533,065,282 1,534,483,938 1,602,339,912 Source: Note: Total Direct Tax Rate 0.8521 0.8588 0.8791 0.8340 1.0820 1.3170 1.3347 1.4522 1.4702 1.4702 Total Secured and Unsecured Estimated Market Value 13,799,610,572 16,687,281,012 17,790,931,957 17,143,465,763 15,460,396,890 14,840,670,920 14,840,650,090 13,008,153,658 13,223,453,140 14,061,706,204 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. 186 Total Assessed Value as a Percentage of Total Estimated Market Value 11.0 10.1 10.3 11.2 11.9 11.9 11.9 11.8 11.6 11.4 Coconino County Direct and Overlapping Property Tax Rates Last Ten Fiscal Years Direct Rates Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 County Operating 0.4622 0.4383 0.4338 0.3973 0.3953 0.4303 0.4480 0.5466 0.5466 0.5646 Library District 0.1899 0.2205 0.2293 0.2367 0.2367 0.2367 0.2367 0.2556 0.2556 0.2556 Flood Control District 0.2000 0.2000 0.2160 0.2000 0.2000 0.4000 0.4000 0.4000 0.4000 0.4000 Public Health Service District Total Direct 0.8521 0.8588 0.8791 0.8340 1.0820 1.3170 1.3347 1.4522 1.4522 1.4702 0.2500 0.2500 0.2500 0.2500 0.2500 0.2500 Overlapping Rates Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Note: Fire District Assistance 0.1000 0.1000 0.0972 0.0904 0.0925 0.0986 0.1000 0.1000 0.1000 0.1000 School Equalization 0.3306 0.3564 0.4259 0.4717 0.5123 0.5123 0.5089 Community College 0.5269 0.4865 0.4643 0.4267 0.4308 0.4734 0.4927 0.5879 0.5879 0.6056 Cities 0 - 1.5929 0 - 1.5519 0 - 1.5169 0 - 1.4913 0 - 1.4845 0 - 1.5283 0 - 1.5497 0 - 1.6795 0 - 1.6784 0 - 1.6784 Coconino County adopted tax rate schedules Tax rates are per $100 assessed valuation. 187 Fire Districts 0.4700 - 3.0000 0.4100 - 2.7500 0.4100 - 2.7500 0.3000 - 3.0000 0.2742 - 3.0000 0.0600 - 3.2500 0.3000 - 3.2500 0.3500 - 3.2500 0.4000 - 3.2500 0.4000 - 3.2500 Other Special Districts 0 - 1.3500 0 - 2.2300 0 - 2.2300 0 - 2.9705 0 - 2.6680 0 - 1.5640 0 - 1.6919 0 - 3.3685 0 - 1.6659 0 - 1.6659 School Districts 0.0500 - 9.4606 0.0500 - 9.9025 0.0500 - 10.9896 0.0500 - 9.9371 0.0500 - 8.4520 0.0500 - 8.5934 0.0500 - 10.7007 0.0500 - 11.9461 0.0500 - 11.9461 0.0500 - 13.0827 Coconino County Principal Property Tax Payers Current Year and Seven Years Ago 2016 Total Assessed Value $ 78,375,580 25,246,409 19,498,977 19,294,328 18,164,529 15,870,784 15,446,144 9,921,570 5,697,142 4,915,014 Taxpayer Arizona Public Service Company Transwestern Pipeline Company Unisource Energy Corporation BNSF Railway Company W.L. Gore & Associates Inc. City of Los Angeles Dept of Wtr & Pwr Kinder Morgan (El Paso Natural Gas) Nevada Power Company Qwest Corporation Wal-mart Stores Inc. HTS-CHC (Sedona) LLC Total Principal Taxpayers $ Total Coconino County Primary Assessed Value Source: Rank 1 2 3 4 5 6 7 8 9 10 212,430,477 $ 1,602,339,912 Coconino County Assessor 188 2009 Percentage of Total Primary Assessed Value 4.89% 1.58 1.22 1.20 1.13 0.99 0.96 0.62 0.36 0.31 13.26% Total Assessed Value $ 77,017,813 35,331,053 18,541,722 16,356,913 18,043,975 18,018,149 19,625,984 9,866,303 13,184,230 $ 5,431,114 231,417,256 $ 1,840,775,046 Rank 1 2 4 7 5 6 3 9 8 10 Percentage of Total Primary Assessed Value 4.18% 1.92 1.01 0.89 0.98 0.98 1.07 0.54 0.72 0.30 12.59% Coconino County Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Fiscal Year Ended June 30, County Tax Levied For the Fiscal Year Amount Percentage of Levy 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ 10,373,130 11,991,569 14,061,783 14,383,909 19,513,519 19,880,920 19,356,876 18,532,923 18,693,720 19,059,353 $ 10,197,426 11,693,983 13,583,453 13,977,568 18,641,220 19,239,142 18,811,741 18,092,321 18,610,772 18,622,068 98.31 97.52 96.60 97.18 95.53 96.77 97.18 97.62 99.56 97.71 Fiscal Year Ended June 30, 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Note: Total Collections to Date Collections in Subsequent Years $ 172,828 283,373 456,882 406,803 734,404 527,319 421,051 319,253 910 Amount Percentage of Levy $ 10,370,254 11,977,356 14,040,335 14,384,371 19,375,624 19,766,461 19,232,792 18,411,574 18,611,682 18,622,068 99.97 99.88 99.85 100.00 99.29 99.42 99.36 99.35 99.56 97.71 County Tax Levied for the Fiscal Year County Operating 6,332,859 6,637,571 7,328,876 7,320,104 7,631,149 7,774,986 7,836,325 8,321,922 8,541,404 8,828,938 Public Health Service District Flood Control District County Library 5,153,351 4,588,969 4,397,524 3,828,370 3,820,326 3,848,713 1,237,412 1,508,651 2,014,075 1,961,323 1,849,827 3,172,129 2,959,452 2,468,506 2,426,088 2,446,777 2,802,859 3,845,347 4,718,832 5,102,482 4,879,193 4,344,836 4,163,575 3,914,125 3,905,901 3,934,925 Total County 10,373,130 11,991,569 14,061,783 14,383,909 19,513,519 19,880,920 19,356,876 18,532,923 18,693,720 19,059,353 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. 189 Coconino County Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Certificates of Participation $ 18,180,000 Source: Jail District Revenue Bonds $ 12,445,000 10,435,000 8,340,000 6,145,000 3,855,000 1,970,000 Special Assessments $ 2,153,550 1,885,208 2,364,178 2,016,964 1,646,042 1,262,673 866,084 450,276 345,131 260,000 Total $ 32,778,550 12,320,208 10,704,178 8,161,964 5,501,042 3,232,673 866,084 450,276 345,131 260,000 Percentage of Personal Income 0.77% 0.28% 0.24% 0.18% 0.12% 0.07% 0.02% 0.01% 0.01% NA 1 2 Per Capita $ 251.29 93.44 80.19 60.64 40.90 23.77 6.34 3.27 2.48 NA Details regarding the County's outstanding debt can be found in the Notes to the financial statements. 1 Personal income and population information can be found in the Demographics and Economic Statistics schedule. 2 Personal and income and population was not available for 2016. 190 1 2 Coconino County Legal Debt Margin Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2016 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 2007 Debt limit Total net debt applicable to the limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Source: Note: 2008 2009 2010 2011 Fiscal Year 2012 2013 2014 $ 1,602,339,912 96,140,395 $ 96,140,395 2015 2016 $ 90,855,488 $ 101,290,969 $ 110,446,503 $ 115,123,114 $ 110,408,557 $ 105,576,036 $ 105,576,595 $ 91,983,917 $ 92,069,036 $ 96,140,395 $ 90,855,488 $ 101,290,969 $ 110,446,503 $ 115,123,114 $ 110,408,557 $ 105,576,036 $ 105,576,595 $ 91,983,917 $ 92,069,036 $ 96,140,395 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Assessed value information obtained from the Coconino County Assessor. Debt amounts obtained from the Coconino County Single Audit Reports. The Arizona Constitution, Article 9, Section 8, state that the County may become indebted for an amount not to exceed six percent of taxable property. 191 0.00% 0.00% Coconino County Pledged Revenue Coverage Last Ten Fiscal Years Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Jail District Revenues 1 $ 17,132,399 20,714,914 22,039,625 23,176,800 24,465,343 25,597,226 26,432,645 29,764,353 33,158,650 37,112,310 Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Special Assessment Revenues 1 $ 762,301 1,024,569 1,082,701 938,727 1,001,654 971,522 931,380 704,051 371,959 297,796 Less: Expenditures 2 $ 10,708,410 12,543,072 12,175,349 12,060,220 12,366,420 12,638,737 12,954,957 13,793,638 13,554,714 24,544,528 Jail District Revenue Bonds Net Available Debt Service Revenue Principal Interest $ 6,423,989 $ 2,010,000 $ 566,908 8,171,842 2,095,000 477,958 9,864,276 2,195,000 383,992 11,116,580 2,290,000 284,622 12,098,923 1,885,000 177,311 12,958,489 1,970,000 89,333 13,477,688 1,500 15,970,715 19,603,936 12,567,782 Special Assessment Bonds Debt Service Principal Interest $ 293,256 $ 168,330 270,471 126,011 313,901 128,264 347,213 130,280 370,923 109,961 370,923 109,961 396,669 68,223 415,808 46,622 105,144 24,582 85,000 18,128 Coverage 1.65 2.58 2.45 1.97 2.08 2.02 2.00 1.52 2.87 2.89 Source: Details regarding the County's outstanding debt can be found in the Notes to the financial statements. 1 Revenues included beginning fund balances and transfers in. 2 Expenditures include transfers out. 192 Coverage 2.49 3.18 3.82 4.32 5.87 6.29 Coconino County Demographic and Economic Statistics Last Ten Fiscal Years Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sources: Population 130,442 131,853 133,477 134,611 134,105 136,011 136,539 137,682 139,097 143,616 Personal Income (thousands of dollars) $ 4,348,995 4,590,014 4,514,396 4,523,918 4,617,232 4,735,934 4,906,294 5,399,899 5,705,476 NA 1 Per Capita Personal Income $ 33,340 34,812 33,822 33,607 34,430 34,820 35,933 39,220 41,018 NA 1 Unemployment Rate 3.7% 5.1 7.1 8.4 8.2 8.3 7.9 7.1 6.4 6.5 Population and personal income through 2015 obtained from U.S. Department of Commerce, Bureau of Economic Analysis (BEA). Population projection for 2016 obtained from Office of Employment & Population Statistics, Arizona Department of Administration. Unemployment rate obtained from Arizona Unemployment Statistics Program, Research Administration. 1 Personal income estimates were not yet available for fiscal year 2016. 193 THIS PAGE BLANK 194 Coconino County Principal Employers Current Year and Nine Years Ago 2016 Employer Northern Arizona University Flagstaff Medical Center W.L. Gore Flagstaff Unified School District Coconino County City of Flagstaff Twin Arrows Navajo Casino Resort Walmart Grand Canyon Railway SCA Tissue Walgreens Distribution Center Total Employment in Coconino County As of June 30 3 Sources: Employees 2,815 2,350 2,200 1,436 1,294 872 700 630 421 279 1 Rank 1 2 3 4 5 6 7 8 9 10 68,662 2007 Percentage of Total County Employment 4.10% 3.42% 3.20% 2.09% 1.88% 1.27% 1.02% 0.92% 0.61% 0.41% Employees 3,393 1,999 1,300 1,700 1,056 948 Rank 1 2 4 3 5 6 279 400 67,997 1 Economic Collaborative of Northern Arizona, Flagstaff Chamber of Commerce 2 Arizona Department of Economic Security, Workforce Arizona Statistics 3 Arizona Unemployment Statistics Program, Research Administration 195 8 7 2 Percentage of Total County Employment 4.99% 2.94% 1.91% 2.50% 1.55% 1.39% 0.41% 0.59% Coconino County Full-Time Equivalent Employees by Function Last Ten Fiscal Years Function/Program General Government Assessor Board of Supervisors Clerk of the Superior Court Community Development County Attorney County Manager Facilities Management Finance Human Resources Government Relations Information Technology Justice Court - Flagstaff Justice Court - Fredonia Justice Court - Page Justice Court - Williams Legal Defender Non-Departmental Organizational Development Public Defender Recorder Superintendent of Schools Superior Court Treasurer Public Safety Adult Probation Constable Emergency Management Jail District Juvenile Court Services Sheriff Highways and Streets Public Works Sanitation Kachina Village Imp. Dist. Health Health Welfare Career Center Community Services Culture and Recreation Parks and Recreation Total Full-time Equivalent Employees as of June 30 2007 2008 2009 2010 26.00 13.50 23.50 21.50 42.00 5.00 28.00 19.00 10.00 27.00 13.50 23.35 23.00 42.75 10.50 28.00 19.00 11.00 27.08 14.50 23.35 23.50 43.00 10.50 28.00 18.00 10.00 27.00 14.00 23.35 23.50 42.00 11.00 28.00 18.00 10.00 28.00 22.00 2.50 5.00 5.00 4.48 28.00 24.25 2.50 5.00 5.00 5.00 30.00 24.50 2.50 5.00 5.00 5.00 30.00 23.50 2.50 5.00 5.00 5.00 1.00 22.00 17.00 10.40 31.00 8.50 1.00 22.00 19.00 11.36 34.75 8.50 1.00 22.00 19.00 11.36 35.00 8.00 1.00 21.00 19.00 11.36 36.00 8.00 59.60 1.00 60.10 1.00 60.10 1.00 60.10 1.00 146.33 75.28 93.50 165.83 75.48 94.50 168.83 75.28 94.50 168.83 72.08 96.50 136.40 136.40 136.40 136.40 8.00 8.00 8.00 8.00 122.50 129.58 132.53 135.17 10.88 47.92 10.88 49.15 13.88 51.65 13.00 43.17 19.00 1,065.79 20.50 1,115.88 21.00 1,129.46 21.00 1,119.46 Source: Coconino County Budget Books 2007-2016 196 2011 2012 2013 2014 2015 25.00 13.50 23.35 22.50 42.00 12.00 26.00 17.00 10.00 25.00 13.50 23.35 22.50 42.00 12.40 26.00 18.25 9.73 26.00 13.50 23.98 22.50 42.00 13.22 26.00 18.25 9.73 27.00 14.50 23.60 23.50 43.00 12.47 26.00 18.00 10.63 31.00 22.75 2.50 5.00 5.00 5.00 4.00 28.00 22.75 2.50 5.00 5.00 5.00 3.00 24.00 22.75 2.50 5.00 5.00 5.00 21.00 17.00 9.58 35.00 8.00 21.00 17.00 8.88 33.50 8.00 59.50 1.00 2016 24.00 21.50 2.50 5.00 6.00 6.00 27.00 14.50 23.60 30.00 43.00 7.00 26.00 18.00 10.63 4.00 24.00 21.50 2.50 5.00 6.00 6.00 26.00 14.50 25.60 30.00 43.00 7.00 26.00 18.00 11.75 4.00 24.25 21.50 2.75 5.00 6.00 6.25 21.00 17.00 11.66 34.33 8.00 20.00 17.50 10.83 34.33 8.00 20.00 17.50 10.00 36.33 8.00 20.00 17.50 10.71 36.33 8.00 59.50 1.00 58.80 1.00 56.80 1.00 166.83 71.20 97.50 169.63 69.58 97.50 169.68 68.63 99.65 170.98 70.11 96.83 56.80 1.00 3.00 172.89 69.93 98.75 57.81 1.00 3.00 181.50 70.55 97.13 121.15 120.50 132.13 127.54 125.51 125.51 8.00 8.00 8.00 8.00 8.00 8.00 111.65 113.71 111.60 114.33 102.32 95.43 13.00 48.22 12.00 51.22 12.00 50.32 12.00 48.33 13.00 34.83 13.00 34.42 19.75 1,074.98 19.75 1,074.75 20.00 1,083.23 19.00 1,079.28 19.00 1,065.59 19.00 1,070.49 197 Coconino County Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program 2007 2008 2009 2010 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 $ Source: County Department records and Adopted Budgets 198 1,794 6,950 1,581 6,295 1,783 4,624 8,994 52,846 $ 8,334 49,833 $ 7,518 35,028 $ 7,009 24,150 605 512 466 400 4,562 4,001 3,889 3,393 54,356 62,046 42,701 66,000 37,929 71,000 37,000 66,000 1,192 1,108 1,179 1,024 725 998 619 874 692 1,111 766 1,166 72,518 74,000 77,100 73,796 1,343 $ 244,527 1,280 $ 220,000 1,236 $ 237,055 1,253 $ 196,824 365 397 366 372 $ 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 1,934 7,487 26,801 Jail District Average Local Population Sheriff Calls for Service 3,950 27,596 Total Number of Civil Cases Filed Treasurer Total Real Property Notices Public safety Adult Probation Juvenile Court Services Delinquents and Incorrigible Petitions Filed Contributed to Community Through Restitution Hours 3,910 26,206 Superior Court Total Number of Criminal Cases Filed Total Number of Domestic Relations Cases Filed Restitution Collected 3,502 27,462 Public Defender Total Cases Recorder Documents Recorded by Fiscal Year Registered Voters Monthly Average Probationers Supervised 3,805 870 34,650 $ 878 34,779 $ 817 54,433 $ 662 46,906 42,344 38,911 40,656 50,311 42,536 43,126 45,049 41,711 1,712 28 24 2,114 35 75 2,382 53 21 2,303 45 60 10,729 3,664 10,783 4,048 10,512 3,838 10,510 3,662 21,227 23,612 3,591 24,400 25,100 3,042 20,806 24,366 3,012 20,500 25,076 3,180 Fiscal Year 2011 2012 2013 2014 2015 2016 4,575 4,583 4,343 4,296 4,465 5,822 1,880 5,545 1,311 2,629 1,250 3,496 1,280 4,100 1,200 3,600 1,065 2,076 6,278 15,231 7,002 $ 16,000 26,506 26,833 22,819 24,438 23,093 24,673 370 451 552 702 728 755 3,026 3,133 2,951 2,830 3,097 3,044 37,000 67,000 36,500 68,000 32,000 73,000 32,000 71,000 40,000 67,000 35,000 70,000 862 943 900 930 929 910 711 1,077 608 716 625 873 630 880 653 706 700 750 74,000 74,786 74,000 80,165 70,334 69,305 1,252 $ 189,911 1,222 $ 153,524 1,193 $ 198,079 1,196 $ 190,000 1,184 $ 190,000 1,230 $ 190,000 372 407 432 400 415 395 662 30,584 619 $ 34,707 481 52,601 467 $ 53,929 52,815 56,195 60,955 58,651 63,270 63,291 45,441 45,095 42,841 44,000 45,000 45,000 2,500 70 55 2,400 70 80 2,088 62 44 2,559 104 2,755 79 54 3,408 58 46 4,300 3,400 4,693 3,400 4,923 3,825 4,323 3,737 3,564 3,115 3,372 3,570 18,395 26,649 3,303 18,500 25,076 3,200 14,268 20,220 1,404 17,304 21,346 810 17,683 18,965 842 17,380 15,733 684 $ $ $ $ 6,915 13,444 608 39,814 $ $ 9,552 18,938 $ 449 43,474 $ 199 9,181 8,045 $ 8,687 9,993 Coconino County Capital Asset and Infrastructure Statistics by Function Last Nine Fiscal Years Function General government Facilities square footage managed Public safety Jails Substations Patrol vehicles Highways and streets Bridges Miles of paved roads Miles of unpaved roads Sanitation Solid Waste transfer stations Wastewater treatment facilities Wells Health Public health facilities Animal transport vehicles Culture and recreation Parks Acres protected as open space Trail miles available for public use Education School building 2008 2009 2010 Fiscal Year 2012 2011 2013 2014 2015 2016 684,914 684,914 684,914 684,914 684,914 684,914 679,914 682,455 682,455 2 8 74 2 8 74 2 8 75 2 8 77 2 8 79 2 8 55 2 7 46 2 7 47 2 7 56 30 322 711 30 323 711 30 323 711 30 332 711 30 319 611 38 319 604 39 333 590 39 323 672 39 322 676 10 1 5 10 1 5 10 1 5 10 1 5 8 1 5 8 1 5 2 1 5 2 1 5 2 1 5 1 3 1 3 1 3 1 3 1 4 1 4 1 4 1 4 1 4 9 589 16 9 589 17 9 589 17 9 2,503 18 9 2,600 18 9 2,600 18 9 2,600 18 9 2,600 23 9 2,600 23 2 2 2 2 2 2 2 2 2 Source: Note: Coconino County capital asset records and county departments Information was only available for nine years. 200