HomeMy WebLinkAboutComprehensive Annual Financial Report - FY 2016-17 COUNTY OF BUTTE
State of California
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED
JUNE 30, 2017
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Prepared Under the Supervision of:
DAVID A. HOUSER, COUNTY AUDITOR-CONTROLLER
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COUNTY OF BUTTE, CALIFORNIA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
INTRODUCTORY SECTION
Letter of Transmittal 1
Board of Supervisors 9
Principal County Officials 10
Organizational Chart 11
GFOA Certificate of Achievement for Excellence in Reporting 12
FINANCIAL SECTION
Independent Auditors' Report 13
Management's Discussion and Analysis 15
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 26
Statement of Activities 27
Fund Financial Statements
Governmental Funds
Balance Sheet 28
Reconciliation of the Governmental Funds Balance Sheet to the
Government-Wide Statement of Net Position 29
Statement of Revenues, Expenditures, and Changes in Fund balance 30
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the Government-
Wide Statement of Activities 31
Proprietary Fund
Statement of Net Position 32
Statement of Revenues, Expenses, and Changes in Net Position 34
Statement of Cash flows 35
Fiduciary Fund
Statement of Fiduciary Net Position 37
Statement of Changes in Fiduciary Net Position 38
Notes to Basic Financial Statements 39
COUNTY OF BUTTE, CALIFORNIA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
Required Supplementary Information
County Employees' Retirement Plan (Defined Benefit Pension Plans)
Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios —
Miscellaneous Plan 94
Schedule of Changes in Net Pension Liability and Related Ratios —Safety
Plan 95
Schedule of Plan Contributions 96
Other Postemployment Benefits (OPEB) Plan
Schedule of Funding Progress 97
Major Governmental Funds — Budgetary Comparison Schedules
General Fund 98
Social Services Fund 102
Behavioral Health Fund 103
Budgetary Comparison Schedules
Road Fund 104
Note to Required Supplementary Information 105
Supplementary Information
Nonmajor Governmental Funds 106
Combining Balance Sheet 108
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balance 111
Public Health Fund 114
Child Support Services Special Revenue Fund 115
County Service Area Special Revenue Fund 116
Equipment Replacement Fund 117
Fish and Game Fund 118
Housing and Community Development Fund 119
IHSS Public Authority Special Revenue Fund 120
Impact Fees Special Revenue Fund 121
Transit Special Revenue Fund 122
Debt Service Fund 123
Capital Projects Fund 124
Permanent Fund 125
COUNTY OF BUTTE, CALIFORNIA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED JUNE 30, 2017
Supplementary Information (Continued)
Internal Service Funds 126
Combining Statement of Net Position 127
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position 129
Combining Statement of Cash Flows 131
Fiduciary Fund 133
Combining Statement of Fiduciary Assets and Liabilities 134
Combining Statement of Changes in Fiduciary Assets and Liabilities 135
STATISTICAL SECTION 136
Financial Trends
Net Position by Component 137
Changes in Net Position by Component 138
Fund Balances —Governmental Funds 140
Changes in Fund Balances —Governmental Funds 141
Revenue Capacity
Property Taxes, Levies, and Collections— Direct and Overlapping
Governments 142
Assessed Value of Taxable Property 143
Property Tax Rates — Direct and Overlapping Governments 144
Principal Property Tax Payers 145
Debt Capacity
Legal Debt Margin Information 146
Ratio of Net General Obligation Bonded Debt to Taxable Assessed Value
and Net General Obligation Debt per Capita 147
Ratio of General Bonded Debt Outstanding 148
Overlapping Bonded Debt 149
Ratio of General Bonded Debt Outstanding 150
Demographic and Economic Statistics 151
County Industry Employment Distribution 152
Miscellaneous Statistical Information 153
Principal Employers 154
Operating Information
Operating Indicators by Function 155
Capital Asset Statistics by Function 156
GLOSSARY 157
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INTRODUCTORY SECTION
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25 COUNTY CENTER DRIVE
December 22, 2017
To the Citizens of Butte County, California
The Comprehensive Annual Financial Report (CAFR) of the County of Butte (County) for the fiscal
year ended June 30, 2017, is hereby submitted in compliance with Sections 25250 and 25253 of the
Government Code of the State of California (State). The report contains financial statements that
have been prepared in conformity with generally accepted accounting principles in the United
States of America (GAAP) prescribed for government entities. Responsibility for both the accuracy
of the data and the completeness and fairness of the presentation, including all disclosures, rests
with the County. To the best of our knowledge and belief, the enclosed data are accurate in all
material respects and present fairly the respective financial position of the governmental activities,
business-type activities, each major fund, and the aggregate remaining fund information of the
County, as of June 30, 2017, and the respective changes in financial position and cash flow, where
applicable, thereof for the fiscal year then ended. All disclosures necessary to enable the reader to
gain an understanding of the County's financial activities have been included.
This letter of transmittal is designed to complement the Management's Discussion and Analysis
(MD&A) and should be read in conjunction with it. The County's MD&A can be found on pages 15
through 28 of this report.
The financial reporting entity of the County includes all the funds of the primary government (i.e.,
Butte County as legally defined), as well as all of its component units. Component units are legally
separate entities for which the primary government is financially accountable.
Blended component units, although legally separate entities, are, in substance, part of the primary
government's operations and are included as part of the primary government. Accordingly, certain
districts and agencies accounted for in the Special Revenue are reported as part of the primary
government. For a more detailed overview of the County's component units see the Notes to the
Basic Financial Statements.
(1)
PROFILE OF THE GOVERNMENT
One of the State's original 27 counties, the County was established by an act of the State
Legislature on February 18, 1850. The County is located in the northern portion of the Sacramento
Valley. Rising from the Sacramento River, the County's western boundary, to the Sierra Nevada
Mountains, its eastern perimeter, the County's 1,665 square miles range in elevation from sixty feet
to over 7,000 feet resulting in a considerable variation in climate. There are five incorporated
cities/town located within the County: Biggs, Chico, Gridley, Oroville, and Paradise. The County's
population is 226,404 with approximately 36% of the residents living in the unincorporated area.
Policymaking and legislative authority is vested in the County Board of Supervisors (the Board),
which consists of an elected supervisor from each of five districts. The Board is responsible,
among other things for passing ordinances, adopting the budget, appointing committees,
appointing the Chief Administrative Officer (CAO), and appointing nonelected department heads.
Supervisors are elected to four-year terms staggered every two years with two supervisors being
elected during an election and two years later, three supervisors are elected. The County Charter
designates that certain officers are elected which are responsible for the offices of the County:
Assessor, Auditor-Controller, Clerk-Recorder, District Attorney, Sheriff-Coroner, and Treasurer-Tax
Collector.
The County provides a full range of services including public safety; health and sanitation; the
construction and maintenance of highways, streets, and infrastructure assets; recreational
activities and cultural events; election; library; social services; and administration.
The County maintains a website located at: �N�Nw.buttocou_nay net that provides online services
and extensive information about County government. The County's website includes information
about the Board of Supervisors, Board meeting agendas, County job listings, viewing and paying
Property Taxes, purchasing bid solicitations, County directories, financial information and links to
other local resources just to name a few.
(2)
MAJOR INITIATIVES
Butte County is undertaking several major initiatives notwithstanding significant fiscal limitations:
Capital Projects
• Jail Capacity Expansion Construction
Senate Bill 863 provides for a total of up to $500 million dollars in funding to counties for the
acquisition and construction of adult local criminal justice facilities, which will be made available
through a competitive funding process administered by the State. Butte County submitted an
application for funding in order to construct a new supplemental adult local criminal justice facility
that will help the County cope with the impacts of the 2011 Public Safety Realignment, which
affected an increase in the number of criminal offenders incarcerated and supervised locally.
Butte County was awarded $40 million in funding from the State and will be required to provide
$4.445 million in County funds. The jail construction is slated to begin
In the spring of 2019 with completion anticipated in fiscal year 2020-2021.
• Neal Road Recycling and Waste Facility Module Expansion
This project includes the management, design, construction, and quality assurance for the
development of four waste modules (5A-5D). Modules (5A-5C) are expected to be developed over
the next 7 years. The build-out of the base liner system is anticipated to create the foundation for
the remainder of the landfill's life (estimated to end in 2048). Funding will come from Neal Road
Landfill Enterprise Fund balance and landfill facility fees. The total project cost is estimated at
$10,500,000.
• Neal Road Recycling and Waste Facility Septage Receiving Station
This project is to acquire and construct additional land to provide for permanent septage
receiving, treatment, and disposal facilities. The funding source of this estimated $5,000,000 is the
State Revolving Loan Fund for wastewater projects, Neal Road Landfill Enterprise Fund balance
and landfill facility fees. The project is slated to begin fiscal year 2017-2018 to be completed in
fiscal year 2022-2023.
• Government Campus Infrastructure Improvements
The Oroville Government Center Campus Master Plan Phase I, is expected to be completed in
fiscal year 2017-2018. The project will improve road and utility infrastructure on the north side of
the campus in order to meet the future needs of the jail, Evidence Storage Building & Morgue,
increased utilization of the Day Reporting Center and Probation Administration Offices. The project
will rely on debt financing and be funded by facility reserve in the Capital Projects Fund. Additional
phases of the Government Campus Infrastructure will be required in the future.
(3)
• HR Training Room
This project consists of constructing an accessible training facility that meets the needs of the
Human Resources department and can be used as an emergency operations center. The total
cost is anticipated at$1,882,958 to be completed in fiscal year 2017-2018.
• Technology Upgrade
Butte County Information Systems is in the implementation phase of the LYNC Unified Messaging
System. The LYNC Unified Messaging system leverages the County's data network and will
transition the County's analog voice network to the County's existing data network. The LYNC
implementation is continuing and anticipated to be completed in the spring of 2018.
• Butte Regional Radio Project
The Butte County Radio Communications System is obsolete both in terms of technology and
condition of the equipment. This project will include new equipment for communications towers,
desktop and vehicle radio communications to support the Sheriff's Office, Probation, Animal
Control, Public Works and other departments in the field on a regular basis at an anticipated
project cost of$7,166,380. The project is expected to be completed in fiscal year 2018-2019.
FACTORS AFFECTING FINANCIAL CONDITION
Economic Challenges
The 2017 fiscal year proved to be a challenge as California emerged from a five-year drought
period with above average rain in the fall and winter of the past year. With the increased rain and
snow levels in the Sierra Mountains resulting in high water flows that caused a failure of parts of
the Oroville Dam and the collapse of the spillway. This extreme situation required the evacuation
of more than 200,000 people in Butte County and locations south. While the dam is currently under
repair it is estimated that it will take several years to complete the total repairs. In addition the
county experienced a number of wild fires such as the Wall Fire, Ponderosa Fire, Cherokee Fire
and LaPorte Fire to name a few, that burned several thousand acres and displaced a number of
citizens. Overall the fiscal position of the county continues to show some improvement as the
unemployment rate in the County has continue to drop. As the unemployment rate continues to
show improvement the new challenge becomes retention. The County has experienced retention
issues resulting in much needed negotiated increases to the hard working government
employees of the County in order to maintain a competitive workforce.
The U.S. Economy is projected to continue to grow in the coming year. Strong growth in property
values and increased property sales continue to be positive. The real estate market, from which
the General Fund derives its largest revenue (property taxes) continues to recover. Assessed
property values, which property taxes are based on, have recovered to pre-recession amounts.
(4)
Pension and healthcare costs continue to dominate the conversation about future costs. The
County has proactively taken steps over the past years to mitigate increased costs by increasing
the employee contributions to CalPERS retirement plan and capping the County's share of
healthcare premiums. The County successfully completed negotiations with all of its collective
bargaining agreements. As CalPERS experiences unfavorable returns on their investments, the
unfunded pension liability continues to grow for the local governmental agencies including the
County. The County continues to explore options of funding this growing debt.
The County must continue to be prudent when utilizing our limited resources in tackling the
challenges previously identified: disaster recovery, restoration of services, improvements to
infrastructure, unfunded pension liabilities, deferred maintenance of facilities, retiree health care
costs, pension obligation bond costs and compensation for employees. The Board of Supervisors
and County staff will continue to prioritize the needs of the community in effectively and efficiently
serving its citizens.
Internal Control
The management of the County has established a comprehensive framework of internal controls
designed to ensure that the assets of the government are protected from loss, theft or misuse. This
framework ensures that adequate accounting data is compiled to allow for the preparation of
financial statements in conformity with accounting principles generally accepted in the United
States of America. Internal controls are designed to provide reasonable, but not absolute,
assurance that these objectives are met. Reasonable assurance provides that the cost of internal
controls should not exceed the benefits and that decisions often require the use of estimates and
judgments by management.
Single Audit
As a recipient of federal and state financial assistance, the County is required to undergo an
annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996
and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-profit Organizations. Information related to this single audit includes the
Schedule of Expenditures of Federal Awards, Schedule of Findings and Questioned Costs, and the
independent auditor's report on internal control and compliance. The County is also responsible
for ensuring that adequate internal controls are in place to ensure compliance with applicable
laws and regulations related to those programs. Internal controls are subject to periodic
evaluation by management and the Auditor-Controller Division's internal audit staff. The 2016-2017
Single Audit will be issued under separate cover and will be available by contacting the Auditor-
Controller's office after March 31, 2018.
(5)
Budgeting Controls
In addition to accounting controls, the County maintains budgetary controls. The objective of
these controls is to ensure compliance with legal provisions embodied in the annual appropriated
budget approved by the Board of Supervisors.
In accordance with the provisions of Sections 29000 and 29143, inclusive, of the California
Government Code and other statutory provisions, commonly known as the County Budget Act, the
County prepares a budget for each fiscal year on or before August 30. Budgeted expenditures are
enacted into law through the passage of an appropriation. This mandates the maximum
authorized expenditures for the fiscal year and cannot be exceeded except by subsequent
amendments to the budget by the County's Board of Supervisors.
An operating budget is adopted each fiscal year for all Governmental Funds. Expenditures are
controlled at the object level within budget units for the County. The object level within a budget
unit is the level at which expenditures may not legally exceed appropriations. Pursuant to Board
Resolution 04-029 transfers of appropriations between object levels within the same budget unit
require approval of the Chief Administrative Office and Auditor-Controller. Any amendments or
transfers of appropriations between departments or funds must be approved by the Board of
Supervisors. The Board of Supervisors must approve supplementary appropriations normally
financed by unanticipated revenues during the year. Budgeted amounts in the budgetary financial
schedules are reported as originally adopted and are amended during the fiscal year by
resolutions approved by the Board of Supervisors.
The County uses an encumbrance system as an extension of normal budgetary accounting for
the general, special revenue, and other debt service funds and to assist in controlling
expenditures of the capital projects funds. Under this system, purchase orders, contracts, and
other commitments for the expenditure of monies are recorded in order to reserve that portion of
applicable appropriations.
The County also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control and cash planning. Encumbered appropriations lapse at the
end of each fiscal year.
Credit Rating
The County continues to maintain its credit rating of A+ by Standard and Poor's Rating Service.
The County proudly maintains a strong credit rating and strives to continue this achievement.
(6)
OTHER INFORMATION
Independent Audit
County charter requires an annual audit by independent certified public accountants. The firm of
Clifton, Larson & Allen, LLP was selected by the County to meet this requirement. The goal of the
independent audit was to provide reasonable assurance that the financial statements of the
County, for the fiscal year ended June 30, 2017, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and evaluating the overall financial statement presentation.
The independent auditors concluded, based upon their audit results, that there was a reasonable
basis for rendering an unqualified (clean) opinion that the County's basic financial statements for
the fiscal year ended June 30, 2017, are fairly presented in conformity with accounting standards
generally accepted in the United States of America. The independent auditor's report is presented
as the first item of the financial section of the report.
Awards and Acknowledgments
The GFOA awarded the prestigious Certificate of Achievement for Excellence in Financial
Reporting to the County for successful completion of the CAM for the fiscal year ended June 30,
2016. This achievement represents the County's 11th consecutive award. This award is the highest
form of recognition for excellence in state and local government reporting. In order to be awarded
a Certificate of Achievement, the government had to publish an easily readable and efficiently
organized CAM that satisfied both accounting principles generally accepted in the United States
of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe this current CAM
continues to meet the Certificate of Achievement Program's requirements and we are submitting it
to the GFOA to determine its eligibility for another certificate.
(7)
The preparation of this Comprehensive Annual Financial Report could not have been
accomplished without the efficient and dedicated services of staff from the Auditor-Controller
office and the cooperation and assistance of all County departments. I would like to commend the
Board of Supervisors for its interest, support, and exemplary leadership in planning and
conducting the financial operations of the County in a responsive and progressive manner.
Respectfully submitted,
David A. Houser
County Auditor-Controller
(8)
COUNTY OF BUTTE, CALIFORNIA
BOARD OF SUPERVISORS
JUNE 30, 2017
District 1------------------------------------------------------------------------Bill Connelly Chair*
District 2.........................................................................
-----------Larry Wahl
District 3.............................................................
Kirk, Vice Chair*
District 4 Steve Lambert
-------------------------------------------------------------------------------
District5-----------------------------------------------------------------------------------Doug Teeter
*Chosen annually at the first meeting in January.
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COUNTY OF BUTTE, CALIFORNIA
PRINCIPAL COUNTY OFFICIALS
JUNE 30, 2017
Elected Officials
Assessor Diane Brown
............................................................................................................
Auditor-Controller David A. Houser
-----------------------------------------------------------------------------------------
Clerk/Recorder Candace Grubbs
District Attorney................................................................................................Mike Ramsey
Sheriff-Coroner....................................................................................................Kory Honea
Treasurer-Tax Collector-------------------------------------------------------------------------------------Peggy Moak
Appointed Officials
Agricultural Commissioner.............................................................................Louie Mendoza
Behavioral Health Director Dorian Kittrell
Chief Administrative Officer Paul Hahn
-----------------------------------------------------------------------------------
Chief Probation Officer Steve Bordin
--------------------------------------------------------------------------------------
Child Support Services Director.........................................................................Sean Farrell
County Counsel------------------------- -------- -------- -------- -------- -------- -------- ---------Bruce Alpert
Development Services Director______________________________________________________________________ Tim Snellings
Employment and Social Services Director.....................................................Shelby Boston
Farm, Home &4-H Advisor Randall Mutters
Fire Chief Darren Read
General Services Director Grant Hunsicker
............................................................................
Human Resources Director Pamela Knorr
------------------------------------------------------------------------------
Information Systems Director___________________________________________________________________________ Art Robison
Library Director---------------- -------- -------- -------- -------- -------- -------- ---------.Melanie Lightbody
Public Health Director....................................................................................Cathy Raevsky
Public Works Director Dennis Schmidt
Water& Resource Conservation Director Paul Gosselin
.......................................................
(10)
COUNTY OF BUTTE, CALIFORNIA
ORGANIZATION CHART
JUNE 30, 2017
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COUNTY OF BUTTE, CALIFORNIA
GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN REPORTING
JUNE 30, 2017
Government 1"e'in ance Officers Asso;iation
Certificate of
Achievement
for Excellence
in Financial
Reporting
'resented to
County of Butte
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 0, 2416
Executive DirectarXE
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FINANCIAL SECTION
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CliftonLarsonAllen LLP
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Clifton Larson A len
INDEPENDENT AUDITORS' REPORT
Board of Supervisors
County of Butte, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the County of Butte, California (the
County), as of and for the year ended June 30, 2017, 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 accounting principles generally accepted in the United States of America; 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 auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free 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 auditor's 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 auditor considers internal control relevant to the entity'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 entity'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.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the County, as of June 30, 2017, and the respective changes in financial position,
and where applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
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Board of Supervisors
County of Butte, California
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, the schedule of changes in net pension liability and related ratios and schedule of
plan contributions for the County's employees' retirement plan, the schedule of funding progress for the
County's other postemployment benefits (OPEB) plan, and budgetary comparison information, as listed in
the table of contents, be presented to supplement the basic financial statements. Such information, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County of Butte's basic financial statements. The introductory section, combining and
individual nonmajor fund financial statements and schedules, and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The combining
and individual nonmajor fund financial statements and schedules are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare the
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 auditing standards generally accepted in the United States of America. In our opinion,
the supplementary information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 22,
2017 on our consideration of the County's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the County's 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.
CliftonLarsonAllen LLP
Roseville, California
December 22, 2017
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MANAGEMENT'S DISCUSSION AND ANALYSIS
The information in this section is not covered by the Independent Auditors' Report. It is presented as
required supplementary information for the benefit of the readers of the Comprehensive Annual
Financial Report.
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
In this section of the County of Butte's (County) Comprehensive Annual Financial Report, the County's
management discusses financial results for the fiscal year ended June 30, 2017. It should be read in
conjunction with the County's financial statements following this section. All dollar amounts included in
the Management's Discussion and Analysis section are expressed in thousands unless otherwise
indicated.
FINANCIAL HIGHLIGHTS
Change in Net Position from the previous year was a
decrease of $18 million or 6%, due to to the increase in
Net Position- $56 million retirement benefit obligations. CalPERS experienced a poor
Government Wide investment return. Earnings were 0.6% as opposed to an
expected 7.375% resulting in an increased Net Pension
Liabilit .
X
Change in Governmental Fund balance from the previous
Fund Balance- year was a decrease of$2 million or 1.4% due to increased
Governmental $104 million expenditures relating to the emergencies in the County such
as the Oroville S illwa .
Change in General Fund balance from the previous year
was a decrease of $7 million or 14%, due to increased
General Fund $51 million spending on payroll and public protection in response to the
Oroville Spillway emergency. In addition, one-time funds
expended for one-time projects for example such as the
modernization of the radio and data s stems.
Expenses $411 million Change in Expenses for Governmental Activities from the
revious ear /o
increase or$45 million or 11 .
was an
Revenues $392 million Change in Revenues for Governmental Activities from the
previous year was a increase of$33.8 million.
Change in Long Term Liabilities for Governmental Activities
Long Term Liabilities $320 million from the previous year was an increase of $56 million as a
result of borrowing for the regional radio system, and
increased retirement benefit obligations.
OVERVIEW OF THE FINANCIAL STATEMENTS
A. Basic Financial Statements
The basic financial statements presented in the County's CAFR are divided into three different sections:
1) government-wide financial statements, 2) fund financial statements and 3) the notes to the financial
statements. This report also includes supplementary information intended to furnish additional detail to
support the basic financial statements themselves.
(15)
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
B. Government-Wide Financial Statements
The government-wide financial statements are designed to provide an overview of the County's
finances, in a manner similar to a private-sector business that is, using the accrual basis of
accounting. They demonstrate accountability of Butte County by showing the extent to which it has
met operating objectives efficiently and effectively, using all resources available, and whether it can
continue to do so. The statement of net position presents information on all of the County's
assets and liabilities, and deferred inflows/outflows of resources, with the difference reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the County is improving or declining.
The statement of activities presents information showing how the County's net position changed
during the fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes and earned but unused vacation leave).
The statement of net position and the statement of activities distinguish functions of the County that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the County include
general government, public protection, public ways and facilities, health and sanitation, public
assistance, education, and recreation. The business-type activities of the County include a waste
management operation.
The government-wide financial statements also provide information regarding the County's
component units, entities for which the County (the primary government) is considered to be
financially accountable. Blended component units, although legally separate entities, are in
substance part of the County's operations and therefore data from these component units are
blended in with operational funds of the County. Financial information for the Children and Families
Commission of Butte County, a discretely presented component unit, is reported separately from
the financial information presented for the primary government.
C. Fund Financial Statements
The fund financial statements provide evidence of accountability by demonstrating compliance with
budgetary decisions made in public forum. A fund is a grouping of related accounts that are used to
maintain control over resources that have been segregated for specific activities or purposes
stipulated by laws, regulations or policies. The funds of the County are divided into three categories:
governmental, proprietary, and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government's
near-term financing requirements.
(16)
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The County maintains 100 individual governmental funds. On the financial statements for
governmental funds information is presented separately for five major funds: the General Fund, the
Social Services Fund, the Public Health Fund, the Behavioral Health Fund, and the Road Fund.
Data from the other governmental funds are aggregated into a single column. Individual fund data
for each of these nonmajor governmental funds is provided in the combining statements and
schedules section of this report.
The County adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
Proprietary funds are of two types. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The County
uses an enterprise fund to account for its central landfill operations. Internal service funds are used
to accumulate and allocate costs internally among the County's various functions. The County uses
internal service funds to account for insurance and utilities. Because these services predominantly
benefit governmental rather than business-type functions, they have been included within
governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the part of government-wide financial
statements, only in more detail. The County's internal service funds are combined into a single,
aggregated presentation in the proprietary fund financial statements.
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement because
the resources of those funds are not available to support the County's programs. The accounting
used for fiduciary funds is much like that used for proprietary funds.
D. Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full
understanding of the financial information provided in the government-wide and fund financial
statements.
(17)
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
E. Required Supplementary Information
In addition to the basic financial statements, this report presents Required Supplementary
Information. The required supplementary information is presented concerning the County's
progress in funding its obligation to provide pension and OPEB (Other Postemployment Benefits)
benefits to its employees.
The combining statements referred to earlier in connection with nonmajor governmental funds and
internal service funds are presented immediately following the required supplementary information
on pensions and OPEB.
GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS
Table 1
The County's Net Position
Governmental Business-Type
Activities Activities Total Total
(in Thousands) (in Thousands) (in Thousands) $Change %Change
2017 2016 2017 2016 2017 2016 2017 to 2016 2017 to 2016
Current and Other Assets $ 182,532 $ 181,634 $ 20,044 $ 20,438 $ 202,576 $ 202,072 $ 504 0.25%
Capital Assets 148,635 161,443 24,670 22,988 173,305 184,431 (11,126) (6.03)
Total Assets 331,167 343,077 44,714 43,426 375,881 386,503 (10,622) (2.75)
Deferred Outflow of Resources 51,617 16,815 397 162 52,014 16,977 35,037 206.38
Total Assets and
Deferred Outflows 382,784 359,892 45,111 43,588 427,895 403,480 24,415 6.05
Current and Other Liabilities 24,413 28,950 2,366 2,283 26,779 31,233 (4,454) (14.26)
Long-Term Liabilities 320,293 263,907 14,295 14,262 334,588 278,169 56,419 20.28
Total Liabilities 344,706 292,857 16,661 16,545 361,367 309,402 51,965 16.80
Deferred Inflow of Resources 10,051 19,500 78 208 10,129 19,708 (9,579) (48.60)
Total Liabilities and
Deferred Inflows 354,757 312,357 16,739 16,753 371,496 329,110 42,386 12.88
Net Position:
Net Investment in Capital Assets 132,252 151,756 19,313 16,065 151,565 167,821 (16,256) (9.69)
Restricted 122,023 136,834 - - 122,023 136,834 (14,811) (10.82)
Unrestricted (226,249) (241,055) 9,059 10,769 (217,190) (230,286) 13,096 (5.69)
Total Net Position $ 28,026 $ 47,535 $ 28,372 $ 26,834 $ 56,398 $ 74,369 $ (17,971) (24.16)
The largest portion of the County's net position, $132,252 in governmental activities and $19,313 in
business-type activities, reflects the County's investment in capital assets (i.e. its land, structures and
improvements, infrastructure, and equipment), less any related outstanding debt issued to acquire
those assets. The County uses these capital assets to provide a variety of services to citizens.
Accordingly, these assets are not available for future spending. Although the County's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Restricted net position of $122,023 for governmental activities is the net position subject to external
restrictions on how they may be used.
(18)
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
The remaining deficit balance of ($226,249) in governmental activities is the result of the County's
unfunded Pension and Other Postemployment Benefits obligations.
The following highlights significant factors that affected the governmental and business-type activities
and contributed to the decrease in net position:
• Governmental Activities accounted for a decrease in net position of $19,509 primarily due to
increased retirement costs.
• Business-Type Activities accounted for an increase in net position of $1,538 primarily due to
increased revenues.
The following table presents the activities that accounted for the changes in net position.
Table 2
Changes in Net Position
Governmental Business-Type
Activities Activities Total Total
(in Thousands) (in Thousands) (in Thousands) $Change %Change
2017 2016 2017 2016 2017 2016 2017 to 2016 2017 to 2016
Revenues:
Program Revenues:
Charges for Service $ 42,748 $ 31,805 $ 8,756 $ 8,406 $ 51,504 $ 40,211 11,293 28.08%
Operating Grants and Contribution 270,058 212,696 207 - 270,265 212,696 57,569 27.07
Capital Grants and Contributions 5,734 12,186 5,734 12,186 (6,452) (52.95)
General Revenues:
Property Taxes 59,713 58,629 - 59,713 58,629 1,084 1.85
Sales Taxes 5,035 4,338 5,035 4,338 697 16.07
Other Taxes and Related Revenues 474 1,302 474 1,302 (828) (63.59)
Unrestricted Grants and Contributions - 34,030 - - 34,030 (34,030) (100.00)
Unrestricted Investment Income 4,375 3,042 42 233 4,417 3,275 1,142 34.87
Miscellaneous Revenues 3,584 329 116 30 3,700 359 3,341 930.64
Total Revenues 391,721 358,357 9,121 8,669 400,842 367,026 33,816 9.21
Program Expenses:
General Government 34,998 19,494 - - 34,998 19,494 15,504 79.53
Public Protection 120,176 109,431 120,176 109,431 10,745 9.82
Public Ways and Facilities 41,036 33,074 41,036 33,074 7,962 24.07
Health and Sanitation 79,781 68,462 79,781 68,462 11,319 16.53
Public Assistance 128,712 129,103 128,712 129,103 (391) (0.30)
Education 3,827 3,256 3,827 3,256 571 17.54
Culture and Recreation Services 329 271 329 271 58 21.40
Interest on Long-Term Debt 2,371 2,090 2,371 2,090 281 13.44
Sanitation - 7,583 7,535 7,583 7,535 48 0.64
Total Expenses 411,230 365,181 7,583 7,535 418,813 372,716 46,097 12.37
Change in Net Position (19,509) (6,824) 1,538 1,134 (17,971) (5,690) (12,281) 215.83
Net Position-Beginning 47,535 54,359 26,834 25,700 74,369 80,059 (5,690) (7.11)
Net Position-Ending $ 28,026 $ 47,535 $ 28,372 $ 26,834 $ 56,398 $ 74,369 $ (17,971) (24.16)
(19)
COUNTY OFBUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30i 2017
Expenses, and I�-'Imogra00 Reve0�es- Govern00en-ta��
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FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with
budgetary and legal requirements.
Governmental Funds. The general government functions are included in the General, Special
Revenue, Capital Project, Permanent. and Debt Service Funds. Included in these funds are the special
districts governed by the Board of Supervisors. The focus of the County's governmental funds is to
provide information on near-term inflowo, ou0ovvo, and balances of spendable resources. Such
information is useful in assessing the County's financing requirements. In partiou|ar, total fund balance
|eoo the nonopendab|e portion is a useful measure of the County's net resources available for spending
at the end of the fiscal year.
At June 30. 2017. the County's governmental funds reported combined ending fund balances of
$139.981. The components of total fund balance are as follows:
* Nonopendab|e fund balance — $1.007 are amounts that are not spendable in form, or are legally
or contractually required to be maintained intaot, and are made up of inventories and prepaid
expenses.
* Restricted fund balance — $110.057 oonoiob; of amounts with constraints put on their use by
externally imposed oneditoro, grantors, contributions, |avvo, regulations or enabling legislation.
* Committed fund balance— $8.000 has been established by the Board as an emergency reserve.
* Assigned fund balance — $O are amounts intended to be used for specific purposes by the
Board of Supervisors.
* Unassigned fund balance — $14.857 represents the residual classification for the County's
General Fund.
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
Approximately 99.24% or, $138,914 of the total fund balances is available to meet the County's current
and future needs. With the approval of the Board of Supervisors, County management may allocate a
portion of fund balance to a particular function, project, or activity, and may also allocate for purposes
beyond the current year, within the constraints applied to the various categories of fund balance. With
the exception of the nonspendable portion, fund balances are available for appropriation at any time.
The general fund is the main operating fund of the County. The General Fund balance decreased by
$7,331 or 14 % during the current fiscal year due to increased spending on payroll and public protection
in response to the Oroville Spillway emergency. In addition, one-time funds expended for one-time
projects such as the modernization of the radio and data systems contributed to the current year
decrease of fund balance in the General Fund.
The social services fund has a total fund balance of $6,210 of which all is restricted. The overall fund
balance increased by $1,047 primarily due to increased revenue recognition for program advances and
building of a "reserve" in order to address countercyclical mandates.
The behavioral health fund has a total fund balance of $18,426 of which all is restricted. The overall
fund balance increased by $8,867 primarily resulting from improved system functionality permitting
revenue recognition of matching revenues to expenditures during the modified accrual period.
The road fund has a total fund balance of$3,289 of which $3,020 is restricted. The overall fund balance
decreased by $3,365 primarily resulting from increased number of road projects and increase in
unavailable revenue for reimbursements due from other governmental agencies.
The following table presents revenues from various sources as well as reflecting increases or
decreases from the prior fiscal year in the governmental funds.
Table 3
Revenues in the Governmental Funds
2017 2016 Change
Amount Percent of Amount Percent of Amount Percent of
Revenue Sources (in Thousands) Total (in Thousands) Total (in Thousands) Total
Taxes $ 65,223 16.8% $ 64,270 17.2 % $ 953 6.2 %
Licenses and Permits 3,614 0.9 3,604 1.0 10 0.1
Fines, Forfeitures,and Penalties 6,655 1.7 8,144 2.2 (1,489) (9.7)
Use of Money and Property 4,364 1.1 6,867 1.8 (2,503) (16.3)
Intergovernmental 272,627 70.2 256,812 68.9 15,815 102.8
Charges for Services 32,349 8.3 29,675 8.0 2,674 17.4
Other 3,463 0.9 3,539 0.9 (76) (0.5)
Total $ 388,295 100.0 $ 372,911 100.0 $ 15,384 100.0
Significant changes for major revenue sources are explained below.
• Intergovernmental — increase due to increased timing of federal and state payments such as the
Federal Share of Medi-Cal and Prop 172 payments.
(21)
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
Revenues in the Governmental Funds
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The following table presents expenditures by function compared to prior fiscal year's amounts in the
governmental funds.
Table 4
Expenditures in the Governmental Funds
2017 2016 Change
Amount Percent of Amount Percent of Amount Percent of
Function (in Thousands) Total (in Thousands) Total (in Thousands) Total
General Government $ 39,249 10.0% $ 28,942 7.9% $ 10,307 40.7%
Public Protection 118,494 30.2 112,321 30.6 6,173 24.4
Public Ways and Facilities 21,030 5.4 16,888 4.6 4,142 16.4
Health and Santiation 78,742 20.1 72,135 19.6 6,607 26.1
PublicAssistance 127,459 32.5 128,880 35.1 (1,421) (5.6)
Education 4,056 1.0 3,654 1.0 402 1.6
Culture and Recreation 158 - 116 - 42 0.2
Debt Service 3,429 0.9 4,369 1.2 (940) (3.7)
Total $ 392,617 100.0 $ 367,305 100.0 $ 25,312 100.0
(22)
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
perir.itures in Lhe GovernrnenLa�l Funds,
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Significant changes for major functions are explained below.
• There has been an increase across many of the functions primarily due to increased payroll
costs.
• Public Protection — In addition to increased payroll costs, public protection experienced an
increase due to the Oroville Spillway emergency.
Proprietary funds. The County's proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail. These funds include the County's enterprise
fund; and the internal service funds, which are presented in aggregate.
The County's only enterprise fund consists of the Neal Road Landfill Management fund and has a total
net position of $28,372. Of this amount, $19,313 is investment in capital assets, and the balance of
$9,059 is unrestricted. Overall net position increased by $1,538 due to an increase in revenue landfill
services. The County's internal service funds have an aggregate net position of$3,110. Of this amount,
$3,106 is unrestricted.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget for revenues were an increase
of $2,402. Aid from Other Government revenues outperformed revenue estimates primarily due to
better than expected estimates. Differences between the original budget and the final amended budget
for expenditures were an increase of$5,030.
During the fiscal year, actual revenues were less than budgetary estimates by $3,216. The primary
reason for the decrease was the decreased revenue received from taxes. Teeter Plan Proceeds were
less than budgeted primarily due to the negative tax auction proceeds. Differences in actual
expenditures to budgetary estimates were a decrease of $23,064. The primary reason for the decrease
was efficiencies.
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COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The County's investment in capital assets for its governmental and business-type activities as of
June 30, 2017 amounts to $173,305 (net of accumulated depreciation). This investment in capital
assets includes land, structures and improvements, equipment, construction-in-progress, and
infrastructure. The total decrease in the County's net investment in capital assets for the current period
was 7.0%.
Additional information on the County's capital assets can be found in the Notes to the Financial
Statements section of this report, Note 4 -Capital Assets.
Key events affecting capital assets during the fiscal year included the following:
A. Construction in progress increased for Business-Type Activities.
B. For government-wide financial statement presentation, all depreciable capital assets were
depreciated from acquisition date to the end of the current fiscal year. Fund financial statements
record capital asset purchases as expenditures.
Table 5
Capital Assets (Net of Depreciation)
Governmental Business-Type
Activities Activities Total
(in Thousands) (in Thousands) (in Thousands)
2017 2016 2017 2016 2017 2016
Land $ 2,740 $ 2,740 $ 421 $ 421 $ 3,161 $ 3,161
Structures and Improvements 44,849 46,238 47 47 44,896 46,285
Equipment 15,644 16,612 1,809 1,228 17,453 17,840
Infrastructure 80,379 93,011 16,548 16,978 96,927 109,989
Construction in Progress 5,023 2,842 5,845 4,314 10,868 7,156
Total $ 148,635 $ 161,443 $ 24,670 $ 22,988 $ 173,305 $ 184,431
Long-Term Debt
At June 30, 2017, the County had total long-term debt obligations outstanding of $64,128 consisting of
$8,471 in Certificates of Participation, capital lease obligations of $7,512, bonds payable of $47,745,
and notes payable of$400.
Business activities had total long-term debt obligations of $5,357 consisting of $1,137 of capital lease
obligations and $4,220 of Certificates of Participation. During the year the County refinanced the
Certificates of Participation.
Additional information on the County's long-term liabilities can be found in the Notes to the Financial
Statements section of this report, Note 5- Long-Term Obligations.
(24)
COUNTY OF BUTTE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2017
DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOW OF RESOURCES
A. Deferred Outflows of Resources
Deferred outflows of resources are new to the County's Statement of Net Position for this fiscal
year. This classification balance, although similar to "assets," is set apart because these items do
not meet the technical definition of being a County asset on the date of these financial statements.
On the date of the financial statement these amounts are not available to pay liabilities, which other
assets are. Once the recognition criteria are met, the deferred outflow of resources will become and
expense/expenditure.
The deferred outflow of resources reported on the Statement of Net Position this year is related to
the implementation of GASB 68 and GASB 71 for pension liability reporting. GASB 71 requires that
contributions made during the fiscal year to the retirement system be reported as deferred outflows
of resources.
B. 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 and increase to net position.
The deferred outflow of resources reported on the Statement of Net Position for this fiscal year is
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.
FISCAL OUTLOOK
The County adopted its fiscal year 2017-2018 Final Budget in the total amount of $535,910, with a
General Fund overall emergency reserve level of$8,000. The County will continue to face difficult fiscal
challenges in the foreseeable future. The most critical fiscal uncertainty facing the County continues to
be the impact on local government resulting from actions the State of California may take in addressing
its own fiscal problems, including fire safety, the California Department of Water Spillway, road repairs
as a result of the Oroville Spillway emergency, and health and human services IHSS.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the County's finances for all those
with an interest. Questions concerning any of the information presented in this report or requests for
additional financial information should be addressed to:
Auditor-Controller
25 County Center Drive Suite 120
Oroville, CA 95965
The County's Comprehensive Annual Financial Report can also be found at www.buttecounty.net.
(25)
Ad
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ALIFO, RNIA
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENT
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF NET POSITION
JUNE 30, 2017
Primary Government
Governmental Business-Type
ASSETS Activities Activities Totals
Current Assets:
Cash and Investments $ 133,803,638 $ 19,304,088 $ 153,107,726
Cash and Investments with Fiscal Agent 563,237 - 563,237
Imprest Cash 22,555 2,800 25,355
Interest Receivable 585,934 52,378 638,312
Accounts Receivables, Net 871,255 - 871,255
Due from Other Government Agencies 41,356,133 658,612 42,014,745
Prepaid Items 668,635 26,368 695,003
Inventories 269,054 - 269,054
Loans Receivable 4,391,498 - 4,391,498
Noncurrent Assets:
Capital Assets:
Nondepreciable 7,762,993 6,266,308 14,029,301
Depreciable, Net 140,872,025 18,404,173 159,276,198
Total Assets 331,166,957 44,714,727 375,881,684
DEFERRED OUTFLOWS OF RESOURCES
Pension 51,617,099 397,273 52,014,372
LIABILITIES
Current Liabilities:
Accounts Payable 8,405,096 2,271,535 10,676,631
Salaries and Benefits Payable 7,028,741 57,058 7,085,799
Due to Other Governments 1,320,956 - 1,320,956
Deposits Payable 9,030 - 9,030
Unearned Revenue 7,350,067 - 7,350,067
Accrued Interest 299,340 37,769 337,109
Long-Term Liabilities:
Due within One Year 20,894,330 1,420,602 22,314,932
Due in More than One Year 68,267,373 11,305,678 79,573,051
OPEB 30,419,050 - 30,419,050
Net Pension Liability 200,712,322 1,569,014 202,281,336
Total liabilities 344,706,305 16,661,656 361,367,961
DEFERRED INFLOWS OF RESOURCES
Pension 10,051,467 77,941 10,129,408
Total Deferred Inflows of Resources 10,051,467 77,941 10,129,408
NET POSITION
Net Investment in Capital Assets 132,252,207 19,313,442 151,565,649
Restricted for:
Health and Sanitation 36,591,277 - 36,591,277
Public Safety 24,898,074 - 24,898,074
Public Ways and Facilities 4,621,647 - 4,621,647
Social Services 6,552,639 - 6,552,639
Other Government Programs 49,359,053 - 49,359,053
Unrestricted (226,248,613) 9,058,961 (217,189,652)
Total Net Position $ 28,026,284 $ 28,372,403 $ 56,398,687
See accompanying Notes to Basic Financial Statements.
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COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2017
Net(Expenses)Revenues and
Changes in Net Position
Program Revenues Primary Government
Fees,Fines,and Operating Capital Business-
Charges for Grants and Grants and Governmental Type
Expenses Services Contributions Contributions Activities Activities Total
Functions/Programs
PRIMARY GOVERNMENT
Governmental Activities:
General Government $ 34,998,187 $ 21,707,525 $ 19,743,934 $ $ 6,453,272 $ $ 6,453,272
Public Safety 120,176,236 9,160,994 30,027,244 (80,987,998) (80,987,998)
Public Ways and Facilities 41,036,447 3,915,390 10,308,200 5,734,412 (21,078,445) (21,078,445)
Health and Sanitation 79,780,776 7,378,175 82,162,114 - 9,759,513 9,759,513
Public Assistance 128,712,112 407,561 127,756,721 (547,830) (547,830)
Education 3,827,098 112,870 58,793 (3,655,435) (3,655,435)
Recreation and Cultural Services 328,803 65,327 1,041 (262,435) (262,435)
Debt Service:
Interest on Long-Term Debt 2,370,509 - - (2,370,509) (2,370,509)
Total Governmental Activities 411,230,168 42,747,842 270,058,047 5,734,412 (92,689,867) (92,689,867)
Business-Type Activities:
Sanitation 7,583,173 8,755,702 206,974 - - 1,379,503 1,379,503
Total Primary Government $ 418,813,341 $ 51,503,544 $ 270,265,021 $ 5,734,412 (92,689,867) 1,379,503 (91,310,364)
GENERAL REVENUES
Taxes:
Property Taxes 59,712,848 - 59,712,848
Sales and Use Taxes 5,035,435 5,035,435
Other Taxes and Related Revenues 474,438 474,438
Unrestricted Interest and Investment Earnings 4,375,159 41,693 4,416,852
Other Revenues 3,560,331 139,433 3,699,764
Transfers 22,208 (22,208) -
Total General Revenues and Transfers 73,180,419 158,918 73,339,337
CHANGE IN NET POSITION (19,509,448) 1,538,421 (17,971,027)
Net Position-Beginning 47,535,732 26,833,982 74,369,714
NET POSITION-ENDING $ 28,026,284 $ 28,372,403 $ 56,398,687
See accompanying Notes to Basic Financial Statements.
(27)
/
ALIFO, RNIA
BASIC FINANCIAL STATEMENTS
FUND FINANCIAL STATEMENT
COUNTY OF BUTTE, CALIFORNIA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2017
Behavioral Other Total
General Social Health Road Governmental Governmental
Fund Services Fund Fund Funds Funds
ASSETS
Cash and Investments $ 49,437,012 $ 6,039,104 $ 5,157,447 $ 4,058,319 $ 57,262,505 $ 121,954,387
Restricted Assets:
Cash with Fiscal Agent 30,000 - - - 375,882 405,882
ImprestCash 18,855 - 1,000 50 2,650 22,555
Due from Other Funds 806,444 - - - 7,890 814,334
Interest Receivable 350,909 23,218 20,712 3,547 155,510 553,896
Accounts Receivable 248,120 267,999 124,790 2,983 227,363 871,255
Due from Other Governments 8,283,435 7,708,562 20,548,354 2,259,456 2,556,326 41,356,133
Prepaid Items 668,635 - - - - 668,635
Inventory - - - 269,054 - 269,054
Long-Term Receivables - - - - 4,391,498 4,391,498
Total Assets $ 59,843,410 $ 14,038,883 $ 25,852,303 $ 6,593,409 $ 64,979,624 $ 171,307,629
LIABILITIES
Liabilities:
Accounts Payable $ 3,059,731 $ 41,498 $ 2,950,426 $ 1,435,216 $ 783,384 $ 8,270,255
Accrued Payroll 3,230,659 1,631,107 1,167,992 286,353 712,533 7,028,644
Due to Other Funds 1,330,656 - - - 803,277 2,133,933
Unearned Revenue 801,780 6,068,603 468,085 11,599 - 7,350,067
Deposits Payable 9,030 - - - - 9,030
Total Liabilities 8,431,856 7,741,208 4,586,503 1,733,168 2,299,194 24,791,929
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 471,368 86,962 2,839,498 1,570,533 1,565,406 6,533,767
Total Deferred Inflows
of Resources 471,368 86,962 2,839,498 1,570,533 1,565,406 6,533,767
FUND BALANCES
Nonspendable 798,397 - - 269,054 - 1,067,451
Restricted 27,284,624 6,210,713 18,426,302 3,020,654 61,115,024 116,057,317
Committed 8,000,000 - - - - 8,000,000
Unassigned 14,857,165 - - - - 14,857,165
Total Fund Balances 50,940,186 6,210,713 18,426,302 3,289,708 61,115,024 139,981,933
Total Liabilities,Deferred Inflows
of Resources,and Fund Balances $ 59,843,410 $ 14,038,883 $ 25,852,303 $ 6,593,409 $ 64,979,624 $ 171,307,629
See accompanying Notes to Basic Financial Statements.
(28)
COUNTY OF BUTTE, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION
JUNE 30, 2017
Fund Balance-Total Governmental Funds $ 139,981,933
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 governmental funds.
These assets consist of:
Land $ 2,740,002
Construction in Progress 5,022,991
Infrastructure 593,076,871
Structures and Improvements 71,489,967
Equipment 64,493,520
Less: Accumulated Depreciation (588,192,009)
Total Capital Assets 148,631,342
Some of the County's revenue will be collected after year end, but is not
available soon enough to pay for the current period's expenditures, and
therefore is reported as unavailable revenue in the governmental funds. 6,533,767
Interest payable on long-term debt does not require current financial
resources, therefore, interest payable is not reported as a liability in the
governmental funds. (299,340)
Internal service funds are used by the County to charge the cost of
insurance and utilities to individual funds. The assets and liabilities of the
internal service funds are included in the governmental activities in the
statement of net position. 3,110,025
Long-term liabilities applicable to the County's governmental activities are
not due and payable in the current period and accordingly are not reported
as fund liabilities. Interest on long-term debt is not accrued in
governmental funds, but rather is recognized as an expenditure when due.
All liabilities are reported in the statement of net position.
Certificates of Participation (8,471,287)
Bonds Payable (47,745,000)
Notes Payable (399,858)
Capital Leases (7,511,666)
Compensated Absences (16,237,892)
Net Pension Liability (200,712,322)
Other Post-Employment Benefits (30,419,050)
Total Long-Term Liabilities (311,497,075)
Net Position of Governmental Activities $ 28,026,284
See accompanying Notes to Basic Financial Statements.
(29)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2017
Behavioral Other Total
General Social Health Road Governmental Governmental
Fund Services Fund Fund Funds Funds
REVENUES
Taxes $ 64,381,818 $ - $ - $ - $ 840,903 $ 65,222,721
Licenses and Permits 3,379,667 98,928 - 46,671 88,837 3,614,103
Fines,Forfeits,and Penalties 6,215,992 9,546 169,038 4,200 256,429 6,655,205
Use of Money and Property 4,065,530 43,092 121,116 (3,521) 137,410 4,363,627
Aid from Other Governments 41,601,576 127,653,262 66,960,135 11,809,616 24,602,661 272,627,250
Charges for Services 20,314,467 212,125 3,236,960 2,822,122 5,762,997 32,348,671
Other 3,187,515 1,309 67,596 177,138 29,273 3,462,831
Total Revenues 143,146,565 128,018,262 70,554,845 14,856,226 31,718,510 388,294,408
EXPENDITURES
Current:
General Government 28,475,417 - - - 10,773,637 39,249,054
Public Protection 108,861,129 641,328 - - 8,991,934 118,494,391
Public Ways and Facilities - - - 19,686,474 1,343,294 21,029,768
Health and Sanitation - - 61,571,325 - 17,170,327 78,741,652
Public Assistance - 126,453,632 - - 1,005,691 127,459,323
Education 4,056,341 - - - - 4,056,341
Recreation and Cultural Services 5,263 - - - 152,389 157,652
Debt Service:
Principal 7,820 - - - 1,197,645 1,205,465
Interest 1,415 - - - 2,222,002 2,223,417
Total Expenditures 141,407,385 127,094,960 61,571,325 19,686,474 42,856,919 392,617,063
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 1,739,180 923,302 8,983,520 (4,830,248) (11,138,409) (4,322,655)
OTHER FINANCING SOURCES(USES)
Capital Leases - - - - 7,166,380 7,166,380
Transfers in 580,936 809,250 856,778 1,578,630 10,453,097 14,278,691
Transfers out (9,651,370) (685,428) (973,155) (113,881) (2,550,860) (13,974,694)
Total Other Financing
Sources(Uses) (9,070,434) 123,822 (116,377) 1,464,749 15,068,617 7,470,377
NET CHANGE IN FUND BALANCES (7,331,254) 1,047,124 8,867,143 (3,365,499) 3,930,208 3,147,722
Fund Balance-Beginning 58,271,440 5,163,589 9,559,159 6,655,207 57,184,816 136,834,211
FUND BALANCE-ENDING $ 50,940,186 $ 6,210,713 $ 18,426,302 $ 3,289,708 $ 61,115,024 $ 139,981,933
See accompanying Notes to Basic Financial Statements.
(30)
COUNTY OF BUTTE, CALIFORNIA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2017
Net Change to Fund Balance-Total Governmental Funds $ 3,147,722
Amounts reported for governmental activities in the statement of activities
are different because:
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the fund statements. 3,295,072
Governmental funds report capital outlay as expenditures. However,
in the statement of activities, the cost of those assets is capitalized
and allocated over their estimated useful lives and reported as
depreciation expense.
Capital Outlay Expenditures $ 5,624,864
Depreciation Expense Not Reported in Governmental Funds (25,573,997)
Capital Assets Acquired Under Capital Leases 7,166,380
Capital Asset Retirements and Other Capital Asset Adjustments (24,213) (12,806,966)
Debt proceeds provide current financial resources to governmental funds;
however, issuing debt increases long-term liabilities in the statement of net
position. Repayment of debt principal is an expenditures in the
governmental funds, but in the statement of net position the repayment
reduces long-term liabilities.
Principal Payments on Long-term Debt 1,205,466
Capital Lease (7,166,380) (5,960,914)
Under the modified accrual basis of accounting used in the governmental
funds, expenditures are not recognized for transactions that are normally
paid with expendable available financial resources. In the statement of
activities, however, which is presented on the accrual basis, expenses and
liabilities are reported regardless of when financial resources are available.
Interest Payable (147,093)
Other Postemployment Benefits (3,457,866)
Net pension Liability and Related Deferred Inflows/Outflows of Resources (719,926)
Compensated Absences (1,131,825) (5,456,710)
Amortization of deferred lease incentive reduces rent expense in the
Statement of Activities. 97,500
Internal service funds are used by the County to charge the costs of
insurance and utilities to individual funds. The net revenue/expense of
internal service funds is reported with governmental activities. (1,825,152)
Change in Net Position of Governmental Activities $ (19,509,448)
See accompanying Notes to Basic Financial Statements.
(31)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF NET POSITION
PROPRIETARY FUND
JUNE 30, 2017
Business-Type Governmental
Activities Activities
Internal
Neal Road Service
Landfill Funds
ASSETS
Current Assets:
Cash and Investments $ 19,304,088 $ 11,849,251
Cash with Fiscal Agent - 157,355
Imprest Cash 2,800 -
Interest Receivable 52,378 32,038
Due from Other Governments 658,612 -
Prepaid Items 26,368 -
Total Current Assets 20,044,246 12,038,644
Noncurrent Assets:
Capital Assets:
Nondepreciable:
Land 420,932 -
Construction in Progress 5,845,376 -
Depreciable:
Structures and Improvements 19,871,848 -
Equipment 5,467,740 45,461
Accumulated Depreciation (6,935,415) (41,785)
Total Noncurrent Assets 24,670,481 3,676
Total Assets 44,714,727 12,042,320
Deferred Outflows of Resources 397,273 -
See accompanying Notes to Basic Financial Statements.
(32)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF NET POSITION (CONTINUED)
PROPRIETARY FUND
JUNE 30, 2017
Business-Type Governmental
Activities Activities
Internal
Neal Road Service
Landfill Funds
LIABILITIES
Current Liabilities:
Accounts Payable 2,271,535 134,841
Accrued Salaries and Benefits 57,058 97
Interest Payable 37,769 -
Due to Other Funds - 1,357
Capital Lease 375,602 -
COP Payable, Current Portion 1,025,000 -
Compensates Absences, Current Portion 20,000 -
Claims and Judgments, Current Portion - 2,600,000
Loans Payable, Current Portion - -
Total Current Liabilities 3,786,964 2,736,295
Noncurrent Liabilities:
Capital Lease Payable 761,437 -
COP Payable, Less Current Portion 3,195,000 -
Claims and Judgments - 6,196,000
Compensates Absences, Less Current Portion 173,884 -
Loans Payable, Less Current Portion - -
Net Pension Liability 1,569,014 -
Landfill Closure/Postclosure Care Costs 7,175,357 -
Total Noncurrent Liabilities 12,874,692 6,196,000
Total Liabilities 16,661,656 8,932,295
Deferred Inflows of Resources 77,941 -
NET POSITION
Net Investment in Capital Assets 19,313,442 3,676
Unrestricted 9,058,961 3,106,349
Total Net Position $ 28,372,403 $ 3,110,025
See accompanying Notes to Basic Financial Statements.
(33)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUND
YEAR ENDED JUNE 30, 2017
Business-Type Governmental
Activities Activities
Internal
Neal Road Service
Landfill Funds
OPERATING REVENUES
Charges for Services $ 8,755,702 $ 9,098,260
Miscellaneous 139,433 -
Total Operating Revenues 8,895,135 9,098,260
OPERATING EXPENSES
Salaries and Employee Benefits 1,136,483 271,420
Services and Supplies 5,318,237 4,300,276
Premiums, Claims, and Judgments - 6,080,102
Depreciation and Amortization 671,807 1,357
Landfill Closure/Postclosure Care Costs 417,651 -
Total Operating Expenses 7,544,178 10,653,155
OPERATING INCOME (LOSS) 1,350,957 (1,554,895)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 206,974 -
Interest Income 41,693 11,532
Interest Expense (38,995) -
Gain (Loss) on Sale of Capital Assets - -
Total Nonoperating Revenues (Expenses) 209,672 11,532
NET INCOME BEFORE TRANSFERS 1,560,629 (1,543,363)
Transfers out (22,208) (281,789)
CHANGE IN NET POSITION 1,538,421 (1,825,152)
Net Position - Beginning of Year 26,833,982 4,935,177
NET POSITION - END OF YEAR $ 28,372,403 $ 3,110,025
See accompanying Notes to Basic Financial Statements.
(34)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
YEAR ENDED JUNE 30, 2017
Business-Type Governmental
Activities Activities
Internal
Service
Landfill Funds
CASH FLOWS FROM OPERATING ACTIVATES
Cash Received from Customers $ 8,795,385 $ 9,098,260
Cash Paid to Suppliers for Goods and Services (3,888,501) (9,311,536)
Cash Paid to Employees for Services (1,573,516) (271,420)
Internal Activities- Payments from (to) Other Funds -
Net Cash Provided (Used) by Operating Activities 3,333,368 (484,696)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Grant Proceeds Not Restricted for Capital Purposes 206,974 -
Payments from Other County Funds 581 -
Payments to Other County Funds (22,208) (286,491)
Net Cash Provided (Used) by Noncapital
Financing Activities 185,347 (286,491)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments Related to the Acquisition of Capital Assets (1,538,351) -
Principal Payment on Long-Term Debt (2,313,706) -
Proceeds from Refunded Debt 4,220,000 -
Payment to Refunded Debt Escrow Agent (4,287,724) -
Interest Paid (132,876) -
Net Cash Provided (Used) by Capital and
Related Financing Activities (4,052,657) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 29,249 8,590
NET DECREASE IN CASH AND CASH EQUIVALENTS (504,693) (762,597)
Cash and Cash Equivalents- Beginning 19,811,581 12,769,203
CASH AND CASH EQUIVALENTS - ENDING $ 19,306,888 $ 12,006,606
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO
STATEMENT OF NET POSITION
Cash and Investments $ 19,304,088 $ 11,849,251
Cash with Fiscal Agent - 157,355
Imprest Cash 2,800 -
Total $ 19,306,888 $ 12,006,606
See accompanying Notes to Basic Financial Statements.
(35)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUND
YEAR ENDED JUNE 30, 2017
Business-Type Governmental
Activities Activities
Internal
Service
Landfill Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) $ 1,350,957 $ (1,554,895)
Adjustments to Reconcile Operating Income (Loss)to Net
Cash Provided (Used) by Operating Activities:
Depreciation 671,807 1,357
Changes in Assets and Liabilities:
(Increase) Decrease in:
Accounts Receivable (99,750) -
Prepaid Expenses and Other Assets 538 -
Increase (Decrease) in:
Accounts Payable 1,429,197 105,842
Accrued Salaries (587) -
Compensated Absences 4,071 -
Claims and Judgements - 963,000
Net Pension Liability and Related Deferrals (440,517) -
Landfill Closure/Post-Closure Cost 417,652
Net Cash Provided (Used) by Operating Activities $ 3,333,368 $ (484,696)
NONCASH INVESTING, CAPITAL,AND FINANCING ACTIVITIES
Borrowing under Capital Lease $ 816,393 $ -
See accompanying Notes to Basic Financial Statements.
(36)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2017
Investment Agency
Trust Funds
ASSETS
Cash and investments $ 332,798,738 $ 19,466,281
Interest Receivable 625,516 123,162
Due from Other Funds 1,055,558 376,306
Property Tax Receivable - 10,479,303
Total Assets 334,479,812 30,445,052
LIABILITIES
Due to Other Funds - 110,907
Agency Funds Held for Others - 30,334,145
Total Liabilities - $ 30,445,052
NET ASSETS
Held in Trust for Pool Participants 334,479,812
Total Net Position 334,479,812
Total Liabilities and Net Position $ 334,479,812
See accompanying Notes to Basic Financial Statements.
(37)
COUNTY OF BUTTE, CALIFORNIA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
INVESTMENT TRUST FUNDS
YEAR ENDED JUNE 30, 2017
Additions:
Contributions to Investment Pool $ 1,214,426,397
Interest and Investment Income 1,374,652
Total Additions 1,215,801,049
Deductions:
Distributions from Investment Pool 1,114,516,992
CHANGE IN NET POSITION 101,284,057
Net Position - Beginning 233,195,755
NET POSITION - ENDING $ 334,479,812
See accompanying Notes to Basic Financial Statements.
(38)
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ALIFO, RNIA
BASIC FINANCIAL STATEMENTS
NOTES TO BASIC FINANCIAL STATEMENTS
/
ALIFO, RNIA
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. The Financial Reporting Entity
The County of Butte (County), which was incorporated as a County in 1850 as one of the
State's original 27 counties, is a legal subdivision of the State of California charged with
governmental powers. The County's powers are exercised through a Board of
Supervisors, which, as the governing body of the County, is responsible for the
legislative and executive control of the County. As required by accounting principles
generally accepted in the United States of America, these financial statements present
the government and its component units; legally separate entities for which the County is
considered to be financially accountable. Financial accountability is demonstrated by the
County Board of Supervisors acting as the governing board for each of the component
units.
In evaluating how to define the County for financial reporting purposes, management
has considered all potential component units. The decision to include a potential
component unit in the reporting entity was made by applying the criteria set forth in
Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial
Reporting Entity.
Blended component units, although legally separate entities are, in substance, part of
the County's operations: therefore data from these units are combined with data of the
primary government. Financial accountability is primarily demonstrated by the County's
Board acting as, or appointing, the governing board for each of the component units and
its ability to impose its will. Because of their relationship with the County and the nature
of their operations, component units are, in substance, part of the County's operations
and, accordingly, the activities of these component units are combined, or blended with
the activities of the County for purposes of reporting in the accompanying basic financial
statements. Each blended component unit has a June 30, 2017 fiscal year-end.
Discretely presented component units, also legally separate entities are separately
stated from the County in the financial report. These component units are financially
accountable to the County but for all practical purposes, function on their own.
Based on the criteria established by GASB 14, as amended by GASB Statement No. 39,
the reporting entity also includes the following blended component units, which are
Special Districts under control of the Board of Supervisors:
County Service Area
CSA#11 Durham CSA#12 Stirling City Lighting
CSA#14 East Chico CSA #16 West Chico
CSA#17 South Oroville— Las Plumas Park CSA#27 Richvale
CSA#33 Oro-Wyandotte CSA#36 Glen Haven
CSA#62 Rancho De Thunder CSA#67 Vista Del Cerro
CSA#75 North Park CSA#78 Woodside
CSA#85 Carriage Manor CSA#92 Rosewood Subdivision
CSA#103 Morris Subdivision CSA#161 Mullberry Street
(39)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. The Financial Reporting Entity (Continued)
CSA— Sewer CSA — Lighting and Maintenance
CSA#21 Oakridge CSA#68 Crestwood
CSA#69 Lindo Gardens CSA#82 Stirling City
CSA#71 Joshua Tree #2 CSA#141 Mountain Oaks Subdivision
CSA— Drainage and Lighting CSA — . . -
CSA#47 East and Guynn CSA#4 Sierra Del Oro
CSA#76 Quail Run CSA#23 Pleasant Valley
CSA#79 Big Chico Creek Estates CSA#24 Chico — Mud Creek
CSA#96 Silvertree Subdivision CSA#25 Shasta Union
CSA#97 Stoney Brook CSA#87 Keefer Road/Rock Creek
CSA#101 Carriage Estates Subdivision CSA#95 Copley Acres
CSA#102 Meadowlark Acres CSA#98 Oro Monte Estates
CSA#116 Pistachio Grove Estates CSA#119 South Fork Estates
CSA#125 Willow Bend Subdivision CSA#128 Wildflower Ests Subdivision
CSA#129 Orchard House Estates CSA#169 Sierra Moon Subdivision
CSA#177 Blossom Estates
WE • -
CSA#26 Thermalito Sewer and Drainage
CSA#31 Biggs (Schohr's) Swimming Pool — Recreation
CSA#34 Gridley Swimming Pool — Recreation
CSA#37 Gridley— Biggs Ambulance
CSA#90 Southgate Acres Drainage and Fire Protection
CSA#94 Sycamore Valley Sewer, Lighting, and Drainage
CSA#114 County of Butte— Nitrate Study Plan
CSA#131 Walnut Manor— Lighting, Drainage, and Landscape
CSA#135 Keefer Creek Estates — Lighting, Drainage, and Sewer
CSA#137 Durham-Dayton Industrial Partners for Extended Structural Fire Protection
CSA#149 Biggers Subdivision — Lighting, Drainage, and Snow removal
-D— Permanent - ... Divisions
Tonriha Subdivision — Street Lighting, Drainage, and Road Maintenance
Siskiyou Grove Estate —Street Lighting, Drainage, and Road Maintenance
(40)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. The Financial Reporting Entity (Continued)
The County has created the Public Facilities Financing Corporation (Corporation) for the
purposes of facilitating the financing of public projects within the County. The Board of
Supervisors appoints the governing board of the Corporation and it is responsible for the
fiscal and administrative activities of the entity. For financial reporting purposes
capitalized leases between the County and the Corporation have been eliminated and
the financial data of the entity has been included within the County's reporting entity and
is accounted for in a debt service fund.
Excluded from the Reporting Entity
Local Board Governed Districts and School Districts: These potential component units
have been excluded from the reporting entity. They are legally separate primary
governmental units. The financial reporting for these governmental entities, which are
independent of the County, are limited to the total amount for cash and investments and
the related fiduciary responsibilities of the County for disbursement of these assets.
Activities of school districts and local board governed districts are administered by
boards which are separately elected and which are independent of the County Board of
Supervisors. The following local board governed districts and school districts have been
excluded from the County's financial statements:
Protection to Persons and Property Cemetery
EI Medio Fire District Bangor Cemetery
Gridley-Biggs Cemetery
Kimshew Cemetery
Oroville Cemetery
Chico Area Recreation & Park Paradise Cemetery
Durham Recreation & Park Pine Creek Cemetery
Feather River Recreation & Park Thompson Flat Cemetery
Paradise Recreation & Park Upham Cemetery
Richvale Recreation & Park
Butte County Mosquito Abatement
Butte Creek Drainage Durham Mosquito Abatement
Drainage District#1 Oroville Mosquito Abatement
Drainage District#2 Richvale Sanitary Operating
Drainage District#100
Drainage District#200
(41)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. The Financial Reporting Entity (Continued)
Excluded from the Reporting Entity (Continued)
Other
Butte County Association of Governments Buzztail Community Services
Butte County Resource Conservation Children's and Families Commission
Butte County Office of Education Reclamation District#833
Representing County School Districts Rock Creek Reclamation District
Butte County Fair Sacramento River Reclamation District
Certain entities have separate elected boards and provide services to residents,
generally within the geographic boundaries of the County. In addition, these entities are
excluded from the reporting entity because they are not financially accountable to the
County.
(42)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Presentation
Government-Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are
interrelated. The governmental activities column incorporates data from governmental
funds and internal service funds, while business-type activities incorporate data from the
government's enterprise funds. Separate financial statements are provided for
governmental funds, proprietary funds, and fiduciary funds, even though the latter are
excluded from the government-wide financial statements.
The statement of activities presents a comparison between program expenses and
program revenues for each segment of the business-type activities of the County and for
each function of the County's governmental activities. Program expenses include direct
expenses, which are clearly identifiable with a specific function, and allocated indirect
expenses. Program revenues include 1) charges paid by the recipients of goods or
services offered by the programs and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular program. Revenues that
are not classified as program revenues, including all taxes, are presented instead as
general revenues.
The County has no discretely presented component units to present at this time but will
continue to assess any potential component units. While they may not be considered as
a major component unit, they would nevertheless be shown in a separate column in the
government-wide financial statements.
Fund Financial Statements
The fund financial statements provide information about the government's funds,
including its fiduciary funds and blended component units. Separate statements for each
fund category—governmental, proprietary, and fiduciary—are presented. The emphasis
of fund financial statements is on major governmental and enterprise funds, each
displayed in a separate column. All remaining governmental and enterprise funds are
aggregated and reported as nonmajor funds. Major individual governmental and
enterprise funds are reported as separate columns in the fund financial statements.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal ongoing
operation. The principal operating revenues of the County's enterprise funds and internal
services funds are charges to customers for sales and services. Operating expenses for
enterprise funds and internal service funds include the cost of sales and services,
administration expenses, and depreciation of capital assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
(43)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Presentation
Fund Financial Statements (Continued)
The County reports the following major governmental funds:
• The General Fund is used to account for all revenues and expenditures
necessary to carry out basic governmental activities of the County that are not
accounted for through other funds. For the County, the General Fund includes
such activities as public protection, public ways and facilities, health and
sanitation, public assistance, education and recreation services.
• The Social Services Fund was established to account for the activities of the
Butte County Department of Employment and Social Services. The department
administers the CaIWORKs program, Adult and Children's Protection Services
and various other state, federal, and local assistance programs that are funded
primarily by state and federal grants.
• The Behavioral Health Fund was established to account for the activities of the
Butte County Department of Behavioral Health. The department provides a
comprehensive continuum of services meeting community needs related to
mental health and substance abuse problems. Revenue sources are primarily
sales tax revenue and state grants.
• The Road Fund provides for planning, design, construction, maintenance, and
administration of County transportation planning activities. Revenues consist
primarily of the County's share of state highway user taxes and are
supplemented by federal funds.
The County reports the following major enterprise fund:
• The Landfill Fund was established to account for the County's costs of providing
landfill and related waste disposal services to the citizens of Butte County in both
the unincorporated and incorporated areas of the County.
(44)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Presentation
Fund Financial Statements (Continued)
The County reports the following additional fund types:
• Internal Service Funds account for the County's risk management,
unemployment insurance, and utilities on a cost-reimbursement basis. Internal
Service Funds are presented in summary form as part of the proprietary fund
financial statements. In the government-wide financial statements, the changes
in net position at the end of the fiscal year, as presented in the statements of
activities, were allocated to the user functions of the governmental activities, to
reflect the entire activity for the year. Since the predominant users of the internal
services are the County's governmental activities, the asset and liability balances
of the internal service funds are consolidated into the governmental activities
column at the government-wide level.
• The Investment Trust Fund accounts for the assets of legally separate entities
that deposit cash with the County Treasurer in an investment pool, which
commingles resources in the investment portfolio for the benefit of all
participants. These entities include school and community college districts, other
special districts governed by local boards, regional boards and authorities and
pass through funds for tax collections for cities.
• The Agency Funds are custodial in nature and do not involve measurement of
the results of operations. Such funds have no equity accounts since all assets
are due to individuals or entities at some future time. These funds account for
assets held by the County as an agent for other government units. These units
include Butte County SB-325 and SB-620, and other special districts governed
by local boards, regional boards and authorities, and pass through funds for tax
collections for cities.
(45)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable
measurement focus and basis of accounting. Measurement focus indicates the type of
resources being measured such as current financial resources or economic resources.
The Basis of accounting indicates the timing of transactions or events for recognition in
the financial statements.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the fiscal year
for which the taxes are levied. Operating revenues are those that result from providing
services. Operating expenses for proprietary funds include the cost of sales and
services, administrative expenses, and depreciation of capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and
expenses. Grants and similar items are recognized in the fiscal year in which all eligible
requirements have been satisfied.
The governmental fund financial statements are reported using the current financial
resources measurement focus and modified accrual basis of accounting. Under this
method, revenues are recognized when they become both measurable and available.
"Measurable" means the amount of the transaction can be determined and "available"
means that revenues are collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. Property tax revenues are recognized in
the current year if they are collected within 60 days of fiscal year-end. For all other
revenues, the County considers revenues to be available if they are collected within
60 days of the end of the current fiscal period. Revenues not considered available are
recorded as deferred inflows. The County's other primary revenue sources: investment
income, intergovernmental revenues, and charges for services have been treated as
"susceptible to accrual" under the modified accrual basis. Licenses and permits, fines,
forfeitures and penalties, and other revenue are not considered "susceptible to accrual"
under the modified accrual basis and are recorded as revenues when received.
Expenditures generally are recorded when a liability is incurred. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
Judgments, are recorded when payment is due.
When both restricted and unrestricted net positions are available, unrestricted resources
are used only after the restricted resources are depleted.
(46)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Cash and Cash Equivalents
The County maintains a Cash and Investment Pool that holds deposits for all County
funds, Butte County Schools and Special Districts, and certain other local agency
depositors. For some entities, participation is mandatory. Some of the outside agencies
under mandatory participation in the Investment Pool are Superior Court, Autonomous
Special Districts, Schools, and Community College Districts. Other local agencies may
qualify to participate on a voluntary basis, such as the Butte County Association of
Governments, the Natural Resource Conservation Service, Thermalito Water & Power
and the Butte County Fair, to name a few.
The Pool is not registered as an investment company with the Securities and Exchange
Commission (SEC) nor is it an SEC Rule 2a7-like pool. The Treasurer's Statement of
Investment Policy is prepared in accordance with California Government Code, and
approved annually by the County's Treasury Oversight Committee, and the Board of
Supervisors.
State statutes and the County's investment policy authorize the County Treasurer to
invest in instruments described in California Government Code Section 53601 and
53635, including but not limited to: U.S. Government Treasury and Agency Securities,
bankers' acceptances, commercial paper, corporate bonds and notes, repurchase
agreements and the State Treasurer's Local Agency Investment Fund (LAIF). In
accordance with GASB Statement No. 31, Accounting and Financial Reporting for
Certain Investments and External Investment Pools, investments held by the County
Treasurer are stated at fair value.
The fair value of investments in the Pool is determined monthly based upon quoted
market prices. The County has not provided nor obtained any legally binding guarantees
during the fiscal year ended June 30, 2017 to support the values of shares in the Pool.
However, management believes that the investments in the Pool are of high quality and
that the risk of participation in the Pool is negligible. The Pool is subject to oversight by
the Treasury Oversight Committee, as recommended by the California Debt and
Investment Advisory Commission.
The Pool values participants' shares on an amortized cost basis. Specifically, the Pool
distributes income to participants quarterly based on their relative participation during the
month, which is calculated based on (1) realized investment gains and losses computed
on an amortized cost basis, (2) interest income based on stated rates (both paid and
accrued), (3) amortization of discounts and premiums on a straight-line basis, and
(4) investment and administrative expenses. This method differs from the fair value
method used to value investments in these financial statements because the amortized
cost method is not designed to distribute to participants all unrealized gains and losses
in the fair value of the Pool's investments. Investment income related to investments
reported in certain funds may be assigned to other funds based upon legal or contractual
provisions.
(47)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Cash and Cash Equivalents (continued)
For purposes of the accompanying statement of cash flows — Proprietary Funds, the
County considers all highly liquid investments with a maturity of three months or less
when purchased, and their equity in the County Treasurer's investment pool, to be cash
equivalents.
E. Inventories and Prepaid Items
Inventories are valued at cost, which is determined on a first-in, first-out basis, and
consist primarily of expendable supplies held for consumption. The cost is recorded as
expenditure when the items are used. In the governmental funds balance sheet, there is
a reservation of fund balance equal to the inventory balance as these amounts are not
available for appropriation.
Payments made for services that will benefit future accounting periods are recorded as
prepaid items. In the governmental fund types, there is a reservation of fund balance
equal to the amount of prepaid items, since these amounts are not available for
appropriation.
F. Property Taxes
Property taxes attach as an enforceable lien on January 1. Secured taxes are levied on
July 1 and are payable in two installments due by December 10 and April 10. All general
property taxes are then allocated by the County Auditor-Controller's Office to the various
taxing entities per the legislation-implementing Proposition 13. The method of allocation
used by the County is subject to review by the State of California.
Alternative Method of Distribution of Tax Levies
The County utilizes the alternative method of property tax distribution, whereby the
County, through the legally required Tax Resource Agency Fund' purchases the current
secured unpaid taxes remaining at year-end from participating agencies. In return, the
Tax Resource Agency Fund records a tax receivable and receives the delinquent
secured taxes. The Tax Loss Reserve Agency Fund receives delinquent penalties and
redemption interest accruing to delinquent collections related to participating agencies.
The participating agencies, including the County, the special districts, and the school
districts, in turn, receive their full tax distribution with no liability for uncollected taxes to
the Tax Resource Agency Fund. Therefore, for participating agencies, revenue is
measurable and available and is recorded in the period the payment of current secured
unpaid taxes is received.
(48)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. Property Taxes (Continued)
Alternative Method of Distribution of Tax Levies
The County is required to create a tax loss reserve fund (an agency fund) under one of
two alternative methods: 1) 1% of the total amount of taxes and assessments levied on
the secured roll for the year or 2) 25% of the total delinquent secured taxes and
assessments as calculated at the end of the fiscal year. The County is using 3% of the
total amount of taxes and assessments levied on the secured roll for the year to
establish its tax loss reserve.
G. Loans Receivable
Loans receivable relate to the Housing and Community Development Program funded
by federal and state monies. Loans receivable are collateralized by deeds of trust.
Proceeds from the collection of the loans receivable and resale of assets held for sale
are restricted by the terms of the grant and, accordingly, are reported as a nonspendable
component of fund balance since they do not constitute available spendable resources.
No amount has been provided as an allowance for doubtful accounts because all
material amounts are collectible.
H. Capital Assets
Capital assets (including infrastructure) are recorded at historical cost or estimated cost
if actual historical cost is not available. Contributed capital assets such as works of art of
similar items, and capital assets received in a service arrangement should be reported at
acquisition value rather than fair value. Capital assets include public domain
(infrastructure) general capital assets consisting of certain improvements including
roads, bridges, water/sewer, lighting system, drainage systems, and flood control. The
County defines capital assets as assets with an initial, individual cost of more than
$25,000 for machinery, equipment and computer software; more than $125,000 for
infrastructure, buildings, and land improvements; and an estimated useful life in excess
of one year. Capital assets used in operations are depreciated or amortized (assets
under capital leases) using the straight-line method over the lesser of the capital lease
period or their estimated useful lives in the government-wide statements and the
proprietary funds.
The estimated useful lives are as follows:
Infrastructure 20 to 50 Years
Land Improvements 20 Years
Buildings and Building Improvements 50 Years
Machinery and Equipment 5 to 20 Years
Vehicles 5 to 15 Years
(49)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Capital Assets (Continued)
The County has five networks of infrastructure assets — roads, water/sewer, lighting,
drainage, and flood control. Infrastructure has been included in the County's capital
assets at historical cost and net of related depreciation.
I. Deferred outflows/inflows of resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to
a future period(s) and so will not be recognized as an outflow of resources (expense/
expenditure) until then. The County has only one type of item, from pension activities.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that
applies to a future period (s) and so will not be recognized as an inflow of resources
(revenue) until that time. The County has deferred inflows of resources related to
unavailable revenues reported under the modified actual basis of accounting in the
governmental funds balance sheet and related to pensions in its proprietary and
government-wide statements. The governmental funds report unavailable revenues from
amounts due from the Federal and State, and other sources as appropriate. These
amounts are deferred and recognized as revenues in the period the amounts become
available.
J. Compensated Absences
The liability for compensated absences reported in the government-wide and proprietary
fund statements consists of unpaid, accumulated leave balances. The liability has been
calculated using the vesting method, in which leave amounts for both employees who
currently are eligible to receive termination payments and other employees who are
expected to become eligible in the future to receive such payments upon termination are
included.
(50)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. InterFund Receivables and Payables
Interfund transactions are reflected as either loans, services provided, reimbursements,
or transfers. Loans are reported as receivables and payables as appropriate, are subject
to elimination upon consolidation and are referred to as either "due to/from other funds"
(i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the
noncurrent portion of interfund loans). Any residual balances outstanding between the
governmental activities and the business-type activities are reported in the government-
wide financial statements as "internal balances". Advances between funds, as reported
in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation
and are not available financial resources.
All interfund transactions are treated as transfers. Transfers between governmental or
proprietary funds are netted as part of the reconciliation to the government-wide
presentation.
L. Use of Estimates
The preparation of basic financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
M. Presentation of Financial Information Related to County Fiduciary Responsibilities
The basic financial statements also include an Investment Trust fund to account for cash
and investments held by the County Treasurer for numerous self-governed school and
special districts. The financial reporting for these governmental entities, which are
independent of the County, is limited to the total amount of cash and investments and
other assets, and the related fiduciary responsibility of the County for disbursement of
these assets. School and special district boards that are separately elected, and that are
independent of the County Board of Supervisors, administer activities of the school
districts and special districts. The County Auditor-Controller makes disbursements upon
the request of the responsible self-governed special district officers. The Board has no
effective authority to govern, manage, approve budgets, assume financial accountability,
establish revenue limits, or appropriate surplus funds available in these entities.
Therefore, these entities are fiscally independent of the County. Five cities and
numerous self-governed special districts provide services to the residents of the County.
The operations of these entities have been excluded from the basic financial statements
since each entity conducts its own day-to-day operations and is controlled by its own
governing board.
(51)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Net Position
The government-wide financial statements and proprietary fund financial statements
utilize a net position presentation. Net position is categorized as net investment in capital
assets, restricted, or unrestricted. Net investment in Capital Assets — This category
groups all capital assets, including infrastructure, into one component of net position.
Accumulated depreciation and the outstanding balances of debt that are attributable to
the acquisition, construction, or improvement of these assets reduce the balance in this
category. Restricted— This category presents external restrictions imposed by creditors,
grantors, contributors or laws or regulations of other governments and restrictions
imposed by law through constitutional provisions or legislation. Unrestricted— This
category represents net position of the County, not restricted for any project or other
purpose.
O. Fund Balance
In the fund financial statements, governmental funds report fund balance as
nonspendable, restricted, committed, assigned, or unassigned based primarily on the
extent to which the County is bound to honor constraints on how specific amounts can
be spent.
• Nonspendable Fund Balance — amounts that are not in a spendable form or are
legally or contractually required to be maintained intact (such as inventories or
prepaid amounts).
• Restricted Fund Balance — amounts that can be spent only for specific purposes
stipulated by external parties (such as creditors, grant providers or contributors)
or by law.
• Committed Fund Balance — amounts that can be used only for the specific
purpose determined by a resolution approved by the Board of Supervisors.
Commitments remain binding unless changed or lifted only by the Board of
Supervisors taking the same formal action that imposed the constraint originally.
The formal action must occur prior to the end of the reporting period. The amount
which will be subject to the constraint may be determined in the subsequent
period.
• Assigned Fund Balance— amounts intended to be used by the government entity
for specific purposes that are neither restricted nor committed. Intent can be
expressed by the Board of Supervisors or by an official or body to which the
Board delegates the authority. Assigned fund balance can also be used to
eliminate a projected budgetary deficit in the subsequent year's budget.
(52)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Fund Balance (Continued)
• Unassigned Fund Balance — the residual classification for the General Fund,
including all amounts not contained in the other classifications. Unassigned
amounts are technically available for any purpose. The General Fund is the only
fund that reports a positive unassigned fund balance amount. In other
governmental funds it is not appropriate to report a positive unassigned fund
balance amount. However, in governmental funds other than the general fund, if
expenditures incurred for specific purposes exceed the amounts that are
restricted, committed or assigned to those purposes, it may be necessary to
report a negative unassigned fund balance in that fund.
• Fund Balance Policy — based on the County's policy regarding the fund balance
classification that was approved by the Board of Supervisors, when both
restricted and unrestricted funds are available for expenditure, restricted funds
should be spent first unless legal requirements disallow it. When expenditures
are incurred for purposes for which amounts in any unrestricted fund balance
classification could be used, committed funds are to be spent first, assigned
funds second, and unassigned funds last.
Only the Board of Supervisors has the authority to assign unassigned fund
balance amounts where the County's intent is for those amounts to be used for
specific purposes.
P. 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 fiduciary net position of the Plan and additions to/deductions from the Plan's
fiduciary net position have been determined on the same basis as they are reported by
the CalPERS Financial office. For this purpose, benefit payments (including refunds of
employee contributions) are recognized when currently due and payable in accordance
with the benefit terms. Investments are reported at fair value.
(53)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2017 are classified in the accompanying financial
statements as follows:
Statement of Net Position
Primary Government:
Cash and Investments $ 153,107,726
Cash with Fiscal Agents 563,237
Imprest Cash 25,355
Fiduciary Funds:
Cash and Investments 352,265,019
Total Cash and Investments $ 505,961,337
Cash and investments as of June 30, 2017 consisted of the following:
Cash on Hand $ 95,869
Deposits with Financial Institutions 17,360,001
Investments 505,953,422
Outstanding Warrants (17,447,955)
Total Cash and Investments $ 505,961,337
(54)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the County's
Investment Policy
The table below identifies the investment types that are authorized for the County by the
California Government Code (or the County's investment policy, where more restrictive).
The table also identifies certain provisions of the California Government Code (or the
County's investment policy, where more restrictive) that address interest rate risk, credit risk,
and concentration of credit risk. This table does not address investments of debt proceeds
held by bond trustee that are governed by the provisions of debt agreements of the County,
rather than the general provisions of the California Government Code or the County's
investment policy.
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer
Local Agency Bonds 5 Years None None
U.S. Treasury Obligations 5 Years None None
U.S. Agency Securities 5 Years None None
Banker's Acceptances 180 Days 40% 30%
Commercial Paper 270 Days 25% 10%
Negotiable Certificates of Deposit 5 Years 30% None
Repurchase Agreements 1 year 20% None
Reverse Repurchase Agreements 92 Days 20% of Base Value None
Medium-Term Notes 5 Years 30% None
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 5 Years 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (Other Investment Pools) N/A None None
Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
(55)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
County's investment policy. The table below identifies the investment types that are
authorized for investments held by bond trustee. The table also identifies certain provisions
of these debt agreements that address interest rate risk, credit risk, and concentration of
credit risk.
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity Allowed in One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 180 Days None None
Commercial Paper 270 Days None None
Money Market Mutual Funds N/A None None
Investment Contracts 30 Years None None
Local Agency Investment Fund (LAIF) None None None
Butte County Treasurer's
Pooled Portfolio None None None
(56)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. One of the ways that the
County manages its exposure to interest rate risk is by purchasing a combination of shorter
term and longer term investments and by timing cash flows from maturities so that a portion
of the portfolio is maturing or coming close to maturity evenly over time as necessary to
provide the cash flow and liquidity needed for operations. Information about the sensitivity of
the fair values of the County's investments (including investments held by bond trustee) to
market interest rate fluctuations is provided by the following table that shows the distribution
of the County's investments by maturity:
Remaining Maturity by Fair Value'
Total Less than One to Two to Three to Four to
Investment Type Fair Value One Year Two Years Three Years Four Years Five Years
With Treasurer:
FAMCA $ 34,241,936 $ 19,236,321 $ $ 10,007,570 $ $ 4,998,045
FFCB 37,931,068 17,978,968 4,976,090 5,025,435 9,950,575
FHLB 43,469,195 9,989,395 - 15,201,948 4,950,340 13,327,512
FHLMC 12,941,139 9,970,620 - 2,970,519 -
FNMA 24,877,000 9,987,040 4,990,710 9,899,250 -
IBRD 48,185,589 5,485,655 9,924,955 17,770,790 15,004,189
Municipal Bonds 38,708,095 - 8,057,980 12,558,149 12,853,180 5,238,786
U.S.Treasury Note 8,979,921 - - 8,979,921 - -
Negotiable CD 7,003,429 1,002,457 503,800 1,009,398 2,014,759 2,473,015
Cal Trust 4,585 4,585 - - - -
CAMP 40,196,503 40,196,503
LAIF 155,634,715 155,634,715 - - - -
Corporate Notes 48,210,813 10,003,340 14,199,994 14,089,514 5,023,520 4,894,445
MMF 5,006,197 5,006,197 - - - -
Total with Treasurer 505,390,185 284,495,796 27,737,864 81,787,600 55,482,358 55,886,567
With Fiscal Agents:
Money Market 375,882 375,882 - - - -
Business Checking 157,355 157,355
Discovery Benefits" 30,000 30,000
Total with Fiscal Agents 563,237 563,237
Total Investments $ 505,953,422 $ 285,059,033 $ 27,737,864 $ 81,787,600 $ 55,482,358 $ 55,886,567
(57)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Credit Risk (continued)
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to
the holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required by
(where applicable) the California Government Code, the County's investment policy, or debt
agreements, and the actual rating as of fiscal year-end for each investment type.
Rating as of Fiscal Year-End
S&P\Moody's
r"murn
Investment Type Fair Value Legal Rating AAAJAaa AAAJAa1 AA+/Aaa NR/Aaa AA+MR AA+AA-/A1 AA+AA-/Aa1 AA/Aa2 AA-/Aa3 Not Rated
With Treasurer:
FAMCA $ 34,241,936 N/A $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 34,241,936
FFCB 37,931,068 N/A - - 37,931,068 - - - - - - -
FHLB43,469,195 N/A - - 43,469,195 - - - - - - -
FHLMC 12,941,139 N/A - - 9,970,620 - 2,970,519 - - - - -
FNMA 24,877,000 N/A - - 24,877,000 - - - - - - -
IBRD 48,185,589 N/A 30,299,524 - - 9,960,585 - - - - - 7,925,480
Municipal Bonds 38,708,095 N/A 8,231,616 5,035,000 - - - - 2,585,549 9,981,200 12,874,730 -
U.S.Treasury Note 8,979,921 N/A - - 8,979,921 - - - - - - -
Negotiable CD 7,003,429 N/A - - - - - - - - - 7,003,429
Cal Trust 4,585 N/A - - - - - - - - - 4,585
CAMP40,196,503 N/A - - - - - - - - - 40,196,503
LAIF 155,634,715 N/A - - - - - - - - - 155,634,715
Corporate Notes 48,210,813 N/A 12,541,775 - 4,992,895 - - 9,225,352 11,419,011 - 10,031,780 -
MMF 5,006,197 N/A - - - - - - - - - 5,006,197
Money Market 375,882 A - - 375,882 - - - - - - -
Business Checking 157,355 N/A - - - - - - - - - 157,355
Discovery Benefits 30,000 A 30,000
Total $ 505,953,422 $ 51,072,915 $ 5,035,000 $ 130,596,581 $ 9,960,585 $ 2,970,519 $ 9,225,352 $ 14,004,560 $ 9,981,200 $ 22,906,510 $ 250,200,200
Concentration of Credit Risk
The investment policy of the County contains no limitations on the amount that can be
invested in any one issuer beyond that stipulated by the California Government Code.
Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and
external investment pools) that represent 5% or more of total County investments are as
follows:
Reported
Issuer Investment Type Amount
Federal Agricultural Mortgage Corp. Federal Agency Securities $ 43,184,479
Federal Farm Credit Bank Federal Agency Securities 39,793,330
Federal Home Loan Bank Federal Agency Securities 37,928,073
Federal Home Loan Mortgage Corp. Federal Agency Securities 29,230,256
Federal National Mortgage Assoc. Federal Agency Securities 19,876,930
(58)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The custodial
credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code and the County's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or
investments, other than the following provision for deposits: The California Government
Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a
depository regulated under state law (unless so waived by the governmental unit). The
market value of the pledged securities in the collateral pool must equal at least 110% of the
total amount deposited by the public agencies. California law also allows financial
institutions to secure County deposits by pledging first trust deed mortgage notes having a
value of 150% of the secured public deposits. It is the County's practice to disallow first trust
deed mortgage notes as collateral for the County's secured deposits.
Investment in State Investment Pool
The County is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California. This fund is not registered with the Securities and Exchange Commission
as an investment company, but is required to invest according to California State Code.
Participants in the pool include voluntary and involuntary participants, such as special
districts and school districts for which there are legal provisions regarding their investments.
The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The
Board consists of five members as designated by state statute. The fair value of the
County's investment in this pool is reported in the accompanying financial statements at
amounts based upon the County's pro-rata share of the fair value provided by LAIF for the
entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available
for withdrawal is based on the accounting records maintained by LAIF, which are recorded
on an amortized cost basis.
Investment Trust of California Joint Powers Authority Pool
The County Treasurer's Pool maintains an investment in the Investment Trust of California
Joint Powers Authority Pool (CalTRUST). CaITRUST is not registered with the Securities
and Exchange Commission as an investment company, but is overseen by a Board of
Trustees composed of officials of the public agencies that participate in CaITRUST. The fair
value of the County's position in the pool is approximately the same as the value of the pool
shares.
(59)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements
GASB Statement 72, Fair Value Measurements and Application, sets for the framework for
measuring fair value. That framework provides a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. The hierarchy gives the highest
priority to unadjusted quoted prices in active markets for identical assets or liabilities
(Level1 measurements) and the lowest priority to unobservable inputs (Level 3
measurements). The three levels of the fair value hierarchy under GASB 72 are described
as follows:
Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the County has the ability to access.
Level 2— Inputs to the valuation methodology include:
• Quoted prices for similar assets or liabilities in active markets;
• Quoted prices for identical or similar assets or liabilities in inactive markets;
• Inputs other than quoted prices that are observable for the asset or liability;
• Inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
Level 3— Inputs to the valuation methodology are unobservable and significant to the fair
value measurement. Unobservable inputs reflect the County's own assumptions about
the inputs market participants would use in pricing the asset or liability (including
assumptions about risk). Unobservable inputs are developed based on the best
information available in the circumstances and may include the County's own data.
The asset's level within the hierarchy is based on the lowest level of input that is significant
to the fair value measurement. Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs.
The determination of what constitutes observable requires judgment by the County's
management. County management considers observable data to be that market data which
is readily available, regularly distributed or updated, reliable, and verifiable not proprietary,
and provided by multiple independent sources that are actively involved in the relevant
market.
The categorization of an investment within the hierarchy is based upon the relative
observability of the inputs to its fair value measurement and does not necessarily
correspond to County management's perceived risk of that investment.
(60)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
The following is a description of the valuation methods and assumptions used by the County
to estimate the fair value of its investments. There have been no changes in the methods
and assumptions used for the previous year-end. The methods described may produce a
fair value calculation that may not be indicative of the realizable value or reflective of future
fair values. County management believes its valuation methods are appropriate and
consistent with other market participants. The use of different methodologies or assumptions
to determine the fair value of certain financial instruments could result in a different fair value
measurement at the reporting date.
When available, quoted prices are used to determine fair value. When quoted prices in
active markets are available, investments are classified within Level 1 of the fair value
hierarchy. The County's Level 1 investments primarily consist of investments in corporate
debt securities, and mutual funds. When quoted prices in active markets are not available,
fair values are based on evaluated prices received from the County's custodian of
investments.
For the large portion of the County's portfolio, the County's custodians generally use a multi-
dimensional relational model. Inputs to their pricing models are based on observable
markets inputs in active markets. The inputs to the pricing models are typically benchmark
yields, reported trades, broker-dealer quotes, issuer spreads, and benchmark securities,
among others. The County owns no Level 2 or 3 investments
(61)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurements (Continued)
Fair Value Measurement Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
June 30, Assets Inputs Inputs
2017 (Level 1) (Level 2) (Level 3)
Investments by Fair
Value Level:
Debt Securities:
FAMCA $ 34,241,936 $ $ 34,241,936 $
FFCB 37,931,067 37,931,067
FHLB 43,469,195 43,469,195
FHLMC 12,941,139 12,941,139
FNMA 24,877,000 24,877,000
IBRD 48,185,589 48,185,589
Municipal Bonds 38,708,095 38,708,095
U.S.Treasury Notes 8,979,921 8,979,921 -
Negotiable CD 7,003,429 - 7,003,429
Cal Trust 4,585 4,585
Corporate Notes 48,210,813 48,210,813
MM F 5,006,197 5,006,197
Money Market 375,882 375,882
Business Checking 157,355 157,355
Discovery Benefits 30,000 - 30,000
Total Investments by
Fair Value Level $ 310,122,204 $ 8,979,921 $ 301,142,283 $
Investments Measured at
Amortized Costs:
CAMP 40,196,503
LAI F 155,634,715
Total Investments
Measured at Fair Value $ 505,953,422
(62)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Treasury Investment Pool
Condensed Financial Information for the Treasurer's Investment Pool
In lieu of separately issued financial statements for the Treasurer's investment pool,
condensed financial information is presented below as of and for the fiscal year ended
June 30, 2017:
Statement of Net Position:
Net Position Held for Pool Participants $ 505,372,745
Equity of Internal Pool Participants $ 172,574,007
Equity of External Pool Participants (Voluntary
and Involuntary) 332,798,738
Total Equity $ 505,372,745
Statement of Changes in Net Position:
Net Position Held for Pool Participants
at July 1, 2016 $ 416,384,946
Net Change in Investments by Pool Participants 88,987,799
Net Position Held for Pool Participants
at June 30, 2017 $ 505,372,745
NOTE 3 INTERFUND TRANSACTIONS
Interfund Receivables/Payables
The interfund balances as of June 30, 2017 are as follows:
Balances due to/from other funds:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 695,537
General Fund Agency Fund 110,907
Investment Trust Funds General Fund 1,055,558
Agency Funds General Fund 268,566
Agency Funds Nonmajor Governmental Funds 107,740
Nonmajor Governmental Funds General Fund 6,532
Nonmajor Governmental Funds Internal Service Funds 1,358
Total $ 2,246,198
These interfund balances result from the time lag between the dates that (1) interfund goods
and services are provided or reimbursable expenditures occur, and (2) payments between
funds are made.
(63)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 3 INTERFUND TRANSACTIONS (CONTINUED)
Transfers to/from other funds:
Transfers are indicative of funding for capital projects, lease payments or debt service,
subsidies of various County operations and re-allocations of special revenue. The following
schedule briefly summarizes the County's transfer activity
Transfers From Transfers To Amount
General Fund Behavioral Health Fund $ 856,778
Social Services Fund 809,250
Nonmajor Governmental Funds 7,985,342
Subtotal 9,651,370
Behavioral Health Fund General Fund 2,796
Nonmajor Governmental Funds 970,359
Subtotal 973,155
Road Fund Nonmajor Governmental Funds 113,881
Subtotal 113,881
Social Services Fund General Fund 16,232
Nonmajor Governmental Funds 669,196
Subtotal 685,428
Enterprise Funds Nonmajor Governmental Funds 22,208
Subtotal 22,208
Internal Service Funds Nonmajor Governmental Funds 281,789
Subtotal 281,789
Nonmajor Funds General Fund 561,908
Road Fund 1,578,630
Nonmajor Governmental Funds 410,322
Subtotal 2,550,860
Total Transfers $ 14,278,691
(64)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 4 CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2017 was as follows:
Beginning Transfers and Ending
Balance Additions Retirements Adjustments Balance
Governmental Activities
Capital Assets,Not Being Depreciated:
Land $ 2,740,002 $ - $ $ - $ 2,740,002
Construction in Progress 2,842,230 4,037,071 (1,856,310) 5,022,991
Total Capital Assets,Not Being Depreciated 5,582,232 4,037,071 (1,856,310) 7,762,993
Capital Assets,Being Depreciated:
Infrastructure 585,910,491 7,166,380 - 593,076,871
Structures and Improvements 71,153,146 - 336,821 71,489,967
Equipment 62,909,893 1,993,639 (1,478,194) 1,113,643 64,538,981
Total Capital Assets,Being Depreciated 719,973,530 9,160,019 (1,478,194) 1,450,464 729,105,819
Accumulated Depreciation for:
Infrastructure (492,899,529) (19,797,857) - (512,697,386)
Structures and Improvements (24,915,449) (1,725,558) - (11) (26,641,018)
Equipment (46,297,443) (4,051,939) 1,453,981 11 (48,895,390)
Total Accumulated Depreciation (564,112,421) (25,575,354) 1,453,981 - (588,233,794)
Total Capital Assets,Being Depreciated,Net 155,861,109 (16,415,335) (24,213) 1,450,464 140,872,025
Governmental Activities Capital Assets,Net $ 161,443,341 $ (12,378,264) $ (24,213) $ (405,846) $ 148,635,018
Business-Type Activities
Capital Assets,Not Being Depreciated:
Land $ 420,932 $ - $ $ $ 420,932
Construction in Progress 4,314,219 1,531,157 5,845,376
Total Capital Assets,Not Being Depreciated 4,735,151 1,531,157 6,266,308
Capital Assets,Being Depreciated:
Infrastructure 19,771,159 - 19,771,159
Structures and Improvements 100,690 - 100,690
Equipment 4,655,392 822,007 (9,660) 5,467,739
Total Capital Assets,Being Depreciated 24,527,241 822,007 (9,660) 25,339,588
Accumulated Depreciation for:
Infrastructure (2,792,739) (429,943) (3,222,682)
Structures and Improvements (54,357) - (54,357)
Equipment (3,427,752) (241,864) 9,660 1,580 (3,658,376)
Total Accumulated Depreciation (6,274,848) (671,807) 9,660 1,580 (6,935,415)
Total Capital Assets,Being Depreciated,Net 18,252,393 150,200 - 1,580 18,404,173
Business-Type Activities Capital Assets,Net $ 22,987,544 $ 1,681,357 $ - $ 1,580 $ 24,670,481
(65)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 4 CAPITAL ASSETS (CONTINUED)
Depreciation expense was allocated to functions as follows:
Governmental Activities:
General Government $ 1,804,485
Public Protection 3,007,973
Public Ways 19,657,144
Health and Sanitation 607,955
Public Assistance 241,038
Education 87,003
Recreation and Cultural Services 168,399
Capital Assets Held by the Government's
Internal Service Funds are Charged to the
Various Functions based on their Usage
of Assets 1,357
Total Government Activities $ 25,575,354
Business-Type Activities:
Landfill $ 671,807
(66)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS
Annual Original Outstanding
Interest Principal Issue at June 30,
Type of Indebtedness(Purpose) Maturity Rates Installments Amount 2017
Governmental Activities:
Pension Obligation Bonds:
Series A 6/30/14-6/30/34 5.408%-6.076% $55,000-$3,440,000 $ 28,020,000 $ 27,360,000
Series B 6/30/14-6/30/34 Variable $295,000-$2,105,000 21,875,000 20,385,000
Total Pension Obligation Bonds 49,895,000 47,745,000
Capital Lease Obligations:
Chico Memorial Hall-492 Rio Lindo 4/10/20 7.40% $32,166-$56,943 583,400 159,328
Chico Memorial Hall-554 Rio Lindo 4/10/20 5.20% $39,461-$59,196 670,900 168,955
Ford Motor Credit 2/22/19 5.70% $8,737-$9,235 34,059 17,003
Motorola Solutions, Inc.-Equipment 12/15/26 1.02% $757,453 7,166,380 7,166,380
Total Capital Lease Obligations 8,454,739 7,511,666
Certificates of Participation:
Hall of Records COP 7/1/54 3.50% $100,000-$362,000 8,000,000 7,504,954
2010 Bangor Fire Station#55 COP 8/1/50 4.00% $12,000-$52,000 1,100,000 966,333
Total Certificates of Participation 9,100,000 8,471,287
Notes Payable:
California Energy Commission
Solar Project-Phase 1 12/22/18 3.95% $63,794-$263,961 2,777,000 399,858
Total Governmental Activities $ 70,226,739 $ 64,127,811
Business-Type Activities:
Capital Lease Obligations:
JP Morgan Chase-Dozer 12/24/17 1.774% $108,802-$115,750 $ 558,924 $ 115,750
JP Morgan Chase-Compactor 2/20/01 1.641% $96,771-$103,282 500,000 204,896
JP Morgan Chase-Loader&Haul Truck 11/15/21 1.568% $158,238-$168,398 816,393 816,393
Total Capital Lease Obligations 1,875,317 1,137,039
Certificates of Participation:
2006 Certificates of Participation 7/1/09-7/1/21 3.4%-4.5% $725,000-$1,165,000 - -
Refunded 2006 COP 9/1/2020 1.790% $1,025,000-$1,085,000 4,220,000 4,220,000
4,220,000 4,220,000
Total Business-Type Activities $ 6,095,317 $ 5,357,039
Long-term obligations of the County consist of capital lease obligations, bonds, certificates
of participation, notes, and other liabilities, which are payable from the General, Debt
Service, Capital Projects, Enterprise, and Internal Service Funds. The calculated legal debt
limit for the County is $264,730,132.
(67)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
Summary of Changes in Long-Term Obligations
Amounts
Beginning Ending Due Within
Balance Additions Retirements Balance One Year
Governmental Activities:
Pension Obligation Bonds $ 48,480,000 $ - $ 735,000 $ 47,745,000 $ 880,000
Capital Lease Obligations 449,916 7,166,380 104,630 7,511,666 795,477
Certificates of Participation 8,583,287 - 112,000 8,471,287 117,000
Claims and Judgments 7,833,000 4,347,274 3,384,274 8,796,000 2,600,000
Compensated Absences 15,106,067 23,179,915 22,048,090 16,237,892 16,237,892
Notes Payable 653,693 - 253,835 399,858 263,961
Total Government Activities $ 81,105,963 $ 34,693,569 $ 26,637,829 $ 89,161,703 $ 20,894,337-
Business-Type Activities:
Capital Lease Obligations $ 534,352 $ 816,393 $ 213,706 $ 1,137,039 $ 375,602
Certificates of Participation 6,320,000 4,220,000 6,320,000 4,220,000 1,025,000
Premium on Debt 67,725 - 67,725 - -
Compensated Absences 189,813 179,359 175,288 193,884 20,000
Landfill Closure,Post-Closure Care Costs 6,757,705 417,652 - 7,175,357 -
TotalBusiness-TypeActivities $ 13,869,595 $ 5,633,404 $ 6,776,719 $ 12,726,280 $ 1,420,602
Capital Leases
The following is a summary, by year, of future minimum lease payments, together with the
present value of the minimum lease payments, as of June 30, 2017:
Governmental Business-Type
Year Ending June 30, Activities Activities
2018 $ 890,119 $ 393,819
2019 890,119 276,015
2020 880,884 171,039
2021 757,453 171,039
2022 757,453 171,039
2023-2027 3,787,266 -
Total Minimum Lease Payments 7,963,294 1,182,951
Less: Amount Representing Interest 451,628 45,912
Present Value of Minimum Lease Payments $ 7,511,666 $ 1,137,039
(68)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
The following is a schedule of net remaining property leased under capital leases at
June 30, 2017:
Capital Leases
Acquisition Accumulated Net
Value Depreciation Remaining
Governmental Activities:
Structures and Improvements $ 880,019 $ 193,493 $ 686,526
Land 374,281 - 374,281
Equipment 7,200,439 7,709 7,192,730
Total $ 8,253,537
Business-Type Activities:
Equipment $ 2,160,125 $ 554,454 $ 1,605,671
Total $ 1,605,671
Operating Leases
The County is committed under various noncancellable operating leases for office buildings
and equipment. The minimum future lease commitments on the real estate leases are as
follows:
Year Ending June 30, Payments
2018 $ 4,891,519
2019 1,862,497
2020 1,124,713
2021 708,237
2022 647,952
Total Five-Year Comitment $ 9,234,918
Rental expense was $5,267,514 for all funds for the year ended June 30, 2017.
(69)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
Bonds Payable
At June 30, 2017, bonds outstanding consist of the following:
Pension Obligation Bonds
The pension obligation bonds were issued in three series (A, B, and C) in 2004. These
bonds were issued to save future interest costs associated with the County's pension
obligations. Series A is comprised of serial and term bonds with fixed interest rates. The
average coupon rate is 6.002% over the remaining life of the bonds. Series B has a
variable rate derived from the one-month LIBOR index plus a margin of .30%. (The
County elected to exercise its option to prepay Series C on September 1, 2007.) For
fiscal year 2016/2017, the average rate paid for Series B was .1.01034%. The next
payment of interest for Series A is due December 1, 2017. The interest payments for
Series B are paid the first business day of each month. Principal payments for both
Series A and B are due annually through maturity in fiscal year 2034.
As of June 30, 2017, the estimated (Series B is a variable rate) annual debt service
requirements to maturity for the Pension Obligation Bonds are as follows:
Year Ending June 30, Principal Interest Total
2018 $ 880,000 $ 2,407,002 $ 3,287,002
2019 1,045,000 2,366,334 3,411,334
2020 1,215,000 2,317,368 3,532,368
2021 1,405,000 2,259,807 3,664,807
2022 1,600,000 2,192,694 3,792,694
2023-2027 11,595,000 9,567,093 21,162,093
2028-2032 19,385,000 5,909,819 25,294,819
2033-2034 10,620,000 835,377 11,455,377
Total $ 47,745,000 $ 27,855,494 $ 75,600,494
Notes Payable
At June 30, 2017, notes outstanding consist of the following:
The County has in operation solar panels to generate power for certain County buildings.
This solar project was funded in 2005, in part, through notes from the California Energy
Commission totaling $3,167,000. Principal and interest, at a fixed rate of 3.95%, are due
semi-annually beginning in fiscal year 2005-06.
As of June 30, 2017, annual debt service requirements to maturity are as follows:
Year Ending June 30, Principal Interest Total
2018 $ 263,961 $ 13,221 $ 277,181
2019 135,897 2,691 138,591
Total $ 399,858 $ 15,912 $ 415,770
(70)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
Certificates of Participation
Governmental Activities
2010 Bangor Fire Station Certificates of Participation
On August 11, 2010, the County issued $1,100,000 in Certificates of Participation. The
proceeds, have funded the majority of the costs associated with the construction of
improvements to Bangor Fire Station #55. Commencing with the interest only payment
on February 1, 2011, a payment of interest only is due on February 1 of each year and a
payment comprised of principal and interest is due on August 1 of each year. The
interest rate is fixed at 4.0% per year. The final principal payment is due on August 1,
2050.
Year Ending June 30, Principal Interest Total
2018 $ 15,000 $ 38,353 $ 53,353
2019 15,000 37,753 52,753
2020 16,000 37,133 53,133
2021 17,000 36,473 53,473
2022 17,000 35,793 52,793
2023-2027 97,000 167,846 264,846
2028-2032 120,000 146,266 266,266
2033-2037 145,000 119,766 264,766
2038-2042 175,000 87,926 262,926
2043-2047 213,000 49,246 262,246
2048-2050 136,333 7,793 144,126
Total $ 966,333 $ 764,348 $ 1,730,681
(71)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
Certificates of Participation (Continued)
Governmental Activities (Continued)
Hall of Records Certificates of Participation
On July 17, 2014, the County issued $8,000,000 in Certificates of Participation to the
United States Department of Agriculture Rural Development to finance the construction
of a Hall of Records. Commencing on July 1, 2015, a principal and interest payment is
due on July 1 of each year and an interest only payment is due on January 1 of each
year. The interest rate is fixed at 3.5% per annum. The final principal payment is due
July 1, 2054.
Year Ending June 30, Principal Interest Total
2018 $ 102,000 $ 260,888 $ 362,888
2019 105,000 257,266 362,266
2020 109,000 253,521 362,521
2021 113,000 249,636 362,636
2022 117,000 245,611 362,611
2023-2028 647,000 1,162,709 1,809,709
2029-2033 767,000 1,039,334 1,806,334
2034-2038 912,000 892,772 1,804,772
2039-2043 1,083,000 718,629 1,801,629
2044-2048 1,286,000 511,797 1,797,797
2049-2051 1,528,000 266,167 1,794,167
2052-2055 735,954 28,486 764,440
Total $ 7,504,954 $ 5,886,816 $ 13,391,770
(72)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
Debt Refunding
Business-Type Activities
In July of 2016, the County entered into a lease financing with Capital One Public Founding
for $4,220,000. The proceeds were used for a current refunding of the 2006 Certificates of
Participation (COPs) for Neal Road Recycling and Waste Facility improvements. The
refunding was undertaken to reduce total debt service payments by, approximately
$345,000 over four (4) year term and resulted in an economic gain of$320,675.
Year Ending June 30, Principal Interest Total
2018 $ 1,025,000 $ 74,489 $ 1,099,489
2019 1,045,000 57,191 1,102,191
2020 1,065,000 38,485 1,103,485
2021 1,085,000 19,422 1,104,422
Total $ 4,220,000 $ 189,587 $ 4,409,587
Compensated Absences
Upon termination, an employee may be compensated for sick leave amounts accrued over
240 hours at half the normal pay rate not to exceed $3,000. Employees other than
nonrepresented groups hired after June 30, 2010 will not be eligible for sick-leave buyout
nor will they receive one year of County-paid health benefits after retirement. Retirees other
than nonrepresented groups who retired on or after January 1, 2010 will be subject to a limit
on County reimbursements equal to the sum of the Blue Shield HMO premium, Delta DPO
and vision premiums. Vacation is accrued at varying rates depending on an employee's
years of services. Upon termination, an employee is paid at 100% of the amount accrued.
Compensated absences for vacation are paid out at the employee's current rate of pay.
Administrative leave is accrued by employees exempt from paid overtime and may be
accrued up to a maximum of 352 hours.
The County does not accrue for compensated absences in its governmental fund
statements and recognizes liabilities for compensated absences only if they are due and
payable in an event such as termination. However, in the statement of activities the expense
is allocated to each function based on usage.
The compensated absences liability attributable to the governmental activities will be
liquidated as follows: General Fund 54%, Social Services Fund 17%, Public Health Fund
6%, Behavioral Health Fund 14%, Road Fund 5%, and Nonmajor Funds 4%.
(73)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
Landfill Closure and Post-Closure Costs
State and federal laws and regulations require the County operator to place a final cover on
its Neal Road Landfill site when it stops accepting waste, and to perform certain
maintenance and monitoring functions at the site for thirty years after closure. Although
closure and post-closure care costs will be paid only near to or after the date the landfill
stops accepting waste, the County reports a portion of these closure and post-closure care
costs as an operating expense in each period based on landfill capacity used as of each
balance sheet date.
The County Neal Road Landfill Joint Technical Document (JTD) was revised in May 2016,
resulting in change of available landfill capacity from the original design in 2002. The new
calculated capacity for the Landfill is smaller compared with the original design, which
resulted in a greater percent of capacity filled. According to the revised JTD document, as of
August 31, 2016, with the annual inflation factor, the estimated highest closure costs,
highest correction costs and highest post-closure costs are $12,175,165, $1,842,113, and
$10,271,138, respectively.
Annually, the Landfill adjusts estimated closure and correction costs due to changes in
inflation and capacity. Such changes resulted in an increase to the Landfill closure,
correction care and post-closure liability and caused an increase in expense. Based upon
new estimated capacity, 29.542% capacity is reported to date as the cumulative usage as of
June 30, 2017. The $7,175,357, reported as landfill closure and corrective action and post-
closure liability at June 30, 2017, represents the 29.542% of the estimated closure and
corrective action and post-closure costs.
The County will recognize the remaining estimated closure costs of $17,113,059 as the
remaining estimated capacity is filled. These amounts are based on what it would cost to
perform all closure, corrective actions and post-closure maintenance in 2017. The County
expects to close the landfill in the fiscal year 2031.
In addition, the County Board established a Pledge of Revenue in 2005 to demonstrate
financial responsibility for post-closure maintenance of the Neal Road Landfill. The amount
of $342,371 Pledge Revenue per year in 2017 dollars for the thirty years period of post-
closure maintenance, representing the most recent post-closure maintenance cost estimate
of$10,271,138.
Limitations and Restrictions
There are a number of limitations and restrictions contained in the various debt indentures.
The County's management believes that the County is in compliance with all significant
limitations and restrictions.
(74)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 5 LONG-TERM OBLIGATIONS (CONTINUED)
Rebatable Arbitrage Earnings
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the
issuance of tax-exempt bonds after August 31, 1986. Arbitrage regulations deal with the
investment of all tax-exempt bond proceeds at an interest yield greater than the interest
yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively
rendered taxable if applicable rebates are not reported and paid to the Internal Revenue
Service at least every five years. During the current year, the County performed calculations
of excess investment earnings on various bonds and financings and at June 30, 2017 does
not expect to incur a liability.
NOTE 6 RESTRICTED NET POSITION/FUND BALANCES
Fund Balances
Fund balances are presented in the following categories: nonspendable, restricted,
committed, assigned, and unassigned. A detailed schedule of fund balances at June 30,
2017 is as follows:
Behavioral Other Total
Social Health Road Governmental Governmental
General Services Fund Fund Funds Funds
Nonspendable:
Prepaid Items $ 668,635 $ - $ - $ - $ - $ 668,635
Revolving loan 110,907 - - - - 110,907
ImprestCash Reserve 18,855 - - - - 18,855
Inventory 269,054 269,054
Total Nonspendable 798,397 269,054 1,067,451
Restricted:
Purpose of Fund - 5,091,706 18,426,302 3,020,654 61,115,024 87,653,686
Clerk Recorder 2,593,417 - - - - 2,593,417
District Attorney 1,455,109 - - - - 1,455,109
Administration 1,875,185 - - - - 1,875,185
Probation 2,019,477 - - - - 2,019,477
Sheriff 3,419,951 - - - - 3,419,951
Fire 1,775,243 - - - - 1,775,243
Library 161,540 - - - - 161,540
Public Works 292,369 - - - - 292,369
2011 Realignment 13,692,333 1,119,007 14,811,340
Total Restricted 27,284,624 6,210,713 18,426,302 3,020,654 61,115,024 116,057,317
Committed:
General Reserve 8,000,000 8,000,000
Assigned:
Secure Rural Schools
Unassigned Fund Balance 14,857,165 14,857,165
Total Fund Balances $ 50,940,186 $ 6,210,713 $ 18,426,302 $ 3,289,708 $ 61,115,024 $ 139,981,933
(75)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 6 RESTRICTED NET POSITION/FUND BALANCES (CONTINUED)
The restricted component of net position are assets that are subject to constraints either
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments, or imposed by law through constitutional provisions or enabling legislation.
The Board of Supervisors revised the General Fund Reserve Policy originally adopted in
2010 on 5/9/2017. The policy was created to allow the County to respond strategically and
responsibly to legally declared emergencies as defined in Government Code § 29086. This
policy sets forth the parameters and funding methods the County may utilize to establish
and maintain an adequate General Fund reserve.
General Reserve requirements are classified as follows:
• Appropriation for Contingencies — if the combined General Fund Reserve and
Appropriation for Contingencies for the upcoming budget year is less than fifteen
percent (15%) of the prior year's actual General Fund operating expenditures, the
Board of Supervisors will consider increasing the General Fund Reserve and/or
Appropriation for Contingencies during the public hearing on the Recommended
Budget in the following circumstances:
o When projected General Fund tax revenue receipts for the upcoming fiscal
year are expected to increase by more than four percent (4%) over the
current (closing) fiscal year.
o When one-time, unanticipated, discretionary revenues exceeding $500,000
with no offsetting expenditures were received over the current (closing) fiscal
year.
o When the County Auditor-Controller and the Chief Administrative Officer
determine additional working capital is needed in the General Fund for cash
flow of the County, the Board of Supervisors will consider contributing the
calculated amount needed to cover cash flow demands to the General Fund
Appropriation for Contingencies.
• General Fund Reserve — during the public hearing on the Recommended Budget, in
response to a fiscal emergency or as part of a multiyear plan to adjust to revenue
losses, the Board of Supervisors may consider reducing the amount set aside in the
General Fund Reserve.
• Excess Fund Balance Available — when the Fund Balance Available is less than
estimated the Auditor-Controller may be directed to reduce the Appropriation for
Contingencies.
o The first priority for Excess General Fund Balance Available at the beginning
of each fiscal year, if any, is to increase the General Fund Reserve and/or the
General Fund Appropriation for Contingencies to ensure it is maintained
within the recommended range of ten to fifteen percent (10-15%) of the prior
year's General Fund operating expenditures.
(76)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 6 RESTRICTED NET POSITION/FUND BALANCES (CONTINUED)
o The second priority for Excess General Fund Balance Available at the
beginning of each fiscal year, if any, is to dedicate excess fund balance for
known and quantified unfunded liabilities or one-time unmet needs, including
but not limited to the following:
■ Employee pension plan contributions and pension obligation bond
debt service
■ Other postemployment benefits (retiree health)
■ Unmet building or maintenance needs
■ Accrued employee needs
• Unreserved Fund Balance — should be maintained to provide adequate working
capital and accommodate required adjustments to other reserve accounts, including
advances to other funds. Appropriations or use of funds from Unreserved Fund
Balances will require approval by the Board of Supervisors.
• Other Assignments or Commitments of the General Fund — establishment of these
policies do not preclude the Board of Supervisors from setting aside additional funds
for a specific project, program or capital item.
Net Position
The government-wide statement of net position reports $122 million of restricted net
position. Net investment in capital assets, was comprised of the following:
Governmental Business-Type
Activities Activities
Capital Assets, Net of Accumulated Depreciation $ 148,635,018 $ 24,670,481
Outstanding Principal of Capital-Related Debt (16,382,811) (5,357,039)
Net Investment in Capital Assets $ 132,252,207 $ 19,313,442
(77)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the
Butte County's separate Safety and Miscellaneous Plans, agent multiple-employer
defined benefit pension plan administered by the California Public Employees'
Retirement System (CalPERS), which acts as a common investment and administrative
agent for its participating member employers. Benefit provisions under the Plan are
established by state statute and Butte County Resolution. CalPERS issues publicly
available reports that include a full description of the pension plans including benefit
provisions, actuarial assumptions and membership information that may be viewed on
their website: http://www.calpers.ca.gov
Benefits Provided
CalPERS provide service retirement disability and death benefits, annual cost of living
adjustments to plan members, who must be public employees and/or beneficiaries.
Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for nonduty disability benefits after
20 years of service. The death benefit is one of the following: the Basic Death Benefit,
the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of
living adjustments for each plan are applied as specified by the Public Employees'
Retirement Law.
The contribution requirements of plan members and the County are established and may
be amended by the Board of Supervisors in accordance with union contracts and plan
provisions.
(78)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
A. General Information about the Pension Plan (Continued)
Benefits Provided (Continued)
The Plan's provisions and benefits in effect at June 30, 2017 are summarized as follows:
Miscellaneous
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2% @ 55 2% @ 62
Benefit Vesting Schedule 5 Years of Service 5 Years of Service
Benefit Payment Monthly for Life Monthly for Life
Retirement Age 50-55 52-67
Monthly Benefits, as a% of Eligible Compensation 2.00% 2.00%
Required Employee Contribution Rates 7% 6.25%
Required Employer Contribution Rates 12.447% 12.447%
Safety
Prior to On or After
Hire Date January 1, 2013 January 1, 2013
Benefit Formula 2%-3% @ 50 2.7% @ 57
Benefit Vesting Schedule 5 Years of Service 5 Years of Service
Benefit Payment Monthly for Life Monthly for Life
Retirement Age 50 52-67
Monthly Benefits, as a% of Eligible Compensation 2.00% 2.00%
Required Employee Contribution Rates 9% 11.00%
Required Employer Contribution Rates 21.621% 21.621%
Employees Covered
Miscellaneous Safety
Inactive Employees or Beneficiaries
Receiving Benefits 1,711 268
Inactive Employees Entitled to but Not Yet
Receiving Benefits 1,318 153
Active Employees 1,915 299
Total 4,944 720
(79)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
A. General Information about the Pension Plan (Continued)
Contributions
Section 20814(c) of the California Public Employees' Retirement Law (PERL) requires
that the employer contribution rates for all public employers be determined on an annual
basis by the actuary and shall be effective on July 1 following notice of a change in rate.
The total plan contributions are determined through CaIPERS' annual actuarial valuation
process. The actuarially determined rate is the estimated amount necessary to finance
the costs of benefits earned by employees during the year, with an additional amount to
finance any unfunded accrued liability. The employer is required to contribute the
difference between the actuarially determined rate and the contribution rate of the
employees. For the measurement period ended June 30 ,2015 (the measurement date),
the average active employee contribution rate is 6.757% of the annual pay for the
Miscellaneous Plan, and 8.778% of annual pay for the Safety Plan. The employer's
contribution rate is 11.652% of the annual payroll for the Miscellaneous Plan, and
19.837% for the Safety Plan. Employer contribution rates may change if plan contracts
are amended. It is the responsibility of the employer to make necessary accounting
adjustments to reflect the impact due to any Employer Paid Member Contributions or
situations where members are paying a portion of the employer contribution.
B. Net Pension Liability
Butte County's net pension liability for each Plan is measured as the total pension
liability, less the pension plan's fiduciary net position. The net pension liability of each of
the Plans is measured as of June 30, 2016 using standard update procedures. A
summary of principal assumptions and methods used to determine the net pension
liability is shown below
Miscellaneous Safety
Valuation Date June 30, 2015 June 30, 2015
Measurement Date June 30, 2016 June 30, 2016
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.65% 7.65%
Inflation 2.75% 2.75%
Payroll Growth' Varies Varies
Investment Rate of Return 7.50% 7.50%
Mortality Rate Table Derived using CaIPERS' Membership Data
Postretirement Benefit Increase Contract COLA up to 2.75% until
Purchasing Power Applies,
2.75% Thereafter
(80)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
B. Net Pension Liability (Continued)
1 Varies by Entry Age and Service
2 Net of pension plan investment and administrative expenses, includes inflation
3 The mortality table used was based on CalPERS' specific data. The table includes
20 years of mortality improvement using the Society of Actuaries Scale BB.
Discount Rate
The discount rate used to measure the total pension liability was 7.65%. To determine
whether the municipal bond rate should be used in the calculation of a discount rate for
each plan, CalPERS stress tested plans that would most likely result in a discount rate
that would be different from the actuarially assumed discount rate. Based on the testing,
none of the tested plans run out of assets. Therefore, the current 7.65% discount rate is
adequate and the use of the municipal bond rate calculation is not necessary. The long-
term expected discount rate of 7.65% is applied to all plans in the Public Employees
Retirement Fund. The stress test results are presented in a detailed report called "GASB
Crossover Testing Report" that can be obtained at CalPERS' website under the GASB
68 section.
According to Paragraph 30 of Statement 68, the long-term discount rate should be
determined without reduction for pension plan administrative expense. The 7.50%
investment return assumption used in this accounting valuation is net of administrative
expenses. Administrative expenses are assumed to be 15 basis points. An investment
return excluding administrative expenses would have been 7.65%. Using this lower
discount rate has resulted in a slightly higher total pension liability and net pension
liability. This difference was deemed immaterial to the agent multiple-employer plan.
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset
Liability management review cycle that is scheduled to be completed in February 2018.
Any changes to the discount rate will require Board action and proper stakeholder
outreach. For these reasons, CalPERS expects to continue using a discount rate net of
administrative expenses for GASB 67 and 68 calculations through at least the 2017-18
fiscal year. CalPERS will continue to check the materiality of the difference in calculation
until such time there is a change in methodology.
The long-term expected rate of return on pension plan investments was determined
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.
(81)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
B. Net Pension Liability (Continued)
In determining the long-term expected rate of return, CaIPERS took into account both
short-term and long-term market return expectations as well as the expected pension
fund cash flows. Such cash flows were developed assuming that both members and
employers will make their required contributions on time and as scheduled in all future
years. Using historical returns of all the fund asset classes, expected compound
(geometric) returns were calculated over the short-term (first 10 years) and the long-term
(11 — 60 years) using a building-block approach. Using the expected nominal returns for
both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the single equivalent expected
return that arrived at the same present value of benefits for cash flows as the one
calculated using both short-term and long-term returns. The expected rate of return was
then set equivalent to the single equivalent rate calculated above and rounded down to
the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate
of return was calculated using the capital market assumption applied to determine the
discount rate and asset allocation. These geometric rates of return are net of
administrative expenses.
New Strategic Real Return Real Return
Pension Allocation Years 1-101 Years 11+2
Global Equity 47.00 % 4.90 % 5.38 %
Global Fixed Income 19.00 0.80 2.27
Inflation Sensitive 6.00 0.60 1.39
Private Equity 12.00 6.60 6.63
Real Estate 11.00 2.80 5.21
Infrastructure and Forestland 3.00 3.90 5.36
Liquidity 2.00 (0.40) (0.90)
1 An expected inflation of 2.5% used for the period
2 An expected inflation of 3.0% used for this period
(82)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
C. Changes in Net Pension Liability
The changes in the net pension liability for each Plan follow:
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Miscellaneous Plan (a) (b) (c)=(a)-(b)
Balance at June 30,2015
(Valuation Date)' $ 582,679,617 $ 463,023,799 $ 119,655,818
Changes Recognized for the
Measurement Period:
Service Cost 13,394,007 - 13,394,007
Interest on Total Pension Liability 43,273,635 - 43,273,635
Changes in Benefit Terms - - -
Differences between Expected
and Actual Experience (890,486) - (890,486)
Plan to Plan Resource Movement - (640,888) 640,888
Contributions from the Employer - 12,439,191 (12,439,191)
Contributions from the Employees - 6,329,016 (6,329,016)
Net Investment Incomez - 2,408,140 (2,408,140)
Benefit Payments, including
Refunds of Employee - - -
Contribution (29,432,567) (29,432,567) -
Administrative Expenses - (278,169) 278,169
Change of Allocation (8,101,429) (6,596,372) (1,505,057)
Net Change During 2015-16 18,243,160 (15,771,649) 34,014,809
Balance at June 30,2016
(Measurement Date) $ 600,922,777 $ 447,252,150 $ 153,670,627
(83)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
C. Changes in Net Pension Liability (Continued)
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Safety Plan (a) (b) (c)=(a)-(b)
Balance at June 30, 2015
(Valuation Date)' $ 163,793,187 $ 125,965,480 $ 37,827,707
Changes Recognized for the
Measurement Period:
Service Cost 4,747,270 - 4,747,270
Interest on Total Pension Liability 12,479,374 - 12,479,374
Changes in Benefit Terms - - -
Differences between Expected
and Actual Experience 424,701 - 424,701
Changes in Assumptions - (14,804) 14,804
Contributions from the Employer - 4,542,710 (4,542,710)
Contributions from the Employees - 1,806,428 (1,806,428)
Net Investment Income - 610,779 (610,779)
Benefit Payments, including
Refunds of Employee - - -
Contribution (6,924,924) (6,924,924) -
Administrative Expenses - (76,770) 76,770
Net Change During 2015-16 10,726,421 (56,581) 10,783,002
Balance at June 30, 2016
(Measurement Date) $ 174,519,608 $ 125,908,899 $ 48,610,709
(84)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
C. Changes in Net Pension Liability (Continued)
Sensitivity of Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the Plan as of the measurement date,
calculated using the discount rate of 7.65%, as well as what the net pension liability
would be if it were calculated using a discount rate that is 1 percentage-point lower
(6.65%) or 1 percentage point higher (8.65%) than the current rate.
Miscellaneous Safety
1% Decrease 6.65% 6.65%
Net Pension Liability $ 231,265,707 $ 73,737,771
Current Discount Rate 7.65% 7.65%
Net Pension Liability $ 153,670,627 $ 48,610,709
1% Increase 8.65% 8.65%
Net Pension Liability $ 89,142,848 $ 28,004,963
Subsequent Events
There were no subsequent events that would materially affect the results presented in
this disclosure.
D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2017, Butte County recognized pension expense of
$20,587,139. At June 30, 2017, Butte County reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Governmental Business-Type Governmental Business-Type
Activities Activities Activities Activities
Pension Contributions Subsequent
to Measurement Date $ 20,159,470 $ 148,261 $ - $ -
Differences Between Actual and
Expected Experience 334,339 - 3,603,534 30,133
Changes in Assumptions on
Plan Investments - - 6,447,933 47,808
Net Difference Between Projected
and Actual Earnings 31,123,290 249,012 - -
Total $ 51,617,099 $ 397,273 $ 10,051,467 $ 77,941
(85)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 7 COUNTY EMPLOYEES RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN)
(CONTINUED)
D. Pension Expense and Deferred Outflows/Inflows of Resources Related to
Pensions
Deferred outflows of resources of$20,159,470 for governmental activities, and $148,261
for business-type activities related to contributions subsequent to the measurement date
will be recognized as a reduction of the net pension liability in the year ended
June 30, 2018. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized as pension expense as
follows:
Year Endinq June 30, Governmental Business-Type
2018 $ (471,399) $ (7,497)
2019 296,649 426
2020 13,390,475 112,845
2021 8,190,437 65,298
Total $ 21,406,162 $ 171,072
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Plan Description
The County sponsor's healthcare coverage under the California Public Employees Medical
and Hospital Care Act (PEMHCA), commonly referred to as PERS Health. PEMHCA
provides health insurance through a variety of Health Maintenance Organization (HMO) and
Preferred Provider Organization (PPO) options. Participation in PEMHCA is financed in part
by the County through a contribution to PEMHCA of $122.00 per employee per month for
2015. The $122.00 per month increased by law to $125.00 on January 1, 2016, and will be
changed by CAL-PERS and legislation for years 2017 and thereafter. Delta Dental (Premier
and DPO), vision and life insurance are also available.
Postretirement Coverage
The County also offers medical, dental and vision coverage (but not life insurance) to its
retirees who meet certain requirements per the County's agreement with the employee. The
County makes the required statutory PEMHCA contribution as described above.
Furthermore, the County will make additional contributions towards certain eligible retirees'
premiums until age 65 according to the County's agreements with its various employee
groups, as describe below.
(86)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Postretirement Coverage (Continued)
Retirees who have completed at least 10 cumulative years of service with the County, have
accrued sick leave in excess of certain hours, and elect retiree health insurance rather than
the sick leave payout option, are eligible to receive reimbursements from the County for the
cost of medical, dental and vision insurance (offset by the County's statutory contribution
to PEMHCA.)
Employees other than nonrepresented groups hired after June 30, 2010 will not be eligible
for sick-leave buyout nor will they receive one year of County-paid health benefits after
retirement. Retirees other than nonrepresented groups who retired on or after January 1,
2010 will be subject to a limit on County reimbursements equal to the sum of the Blue Shield
HMO premium, Delta DPO and vision premiums.
For Teamsters-General, Teamsters-SSW, BCMEA, BCCOA-General, BCCOA-Supervisory,
PPOA, PPOA-Mgmt, Supervisor's Administrative Services Assistants, and Miscellaneous
and Assistant Probation Officer positions within the "Assistant Department Heads and
Nonrepresented" group, the retiree may make an irrevocable election at the time of
retirement to receive one of the following benefit options in addition to 12 months of County-
paid health insurance:
1) One month of retiree-only premiums for each day of accrued sick leave at retirement;
2) One month of 2-party premiums (employee and spouse) for each 2-1/2 days in
excess of 30 days accrued sick leave to cover both employee and spouse until age
65; or
3) One month of retiree-only premiums for each day of accrued sick leave until the sick
leave credit is exhausted or the retiree reaches age 65, and one month of premiums
for spousal coverage for each day of accrued sick leave in excess of thirty days until
the sick leave credit is exhausted or the spouse reaches age 65.
For DSA General, DSA Management, Under Sheriffs, and BCPEA, the retiree will receive 12
months of County-paid retiree-only health coverage. In addition, each one day of accrued
sick leave is converted to one month of retiree-only health insurance premiums and credited
to an account for the retiree. Premiums of the retiree and dependents, if applicable, are
deducted from the account until it is depleted, or until the retiree reaches age 65, if earlier.
Elected and appointed department heads or officials retiring in good standing before age 65
under the provisions of the County's contract with PERS may continue to cover themselves
and eligible dependents under the health plans. The County pays the full premium until
age 65.
In all cases, once the additional County contributions (as described above) end, the County
pays the applicable PEMHCA statutory contribution for the remainder of the retiree's lifetime.
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COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Changes in Eligibility for Sick-Leave Buy-out
Employees other than nonrepresented groups hired after June 30, 2010 will not be eligible
for sick-leave buyout nor will they receive one year of County-paid health benefits after
retirement. Retirees other than nonrepresented groups who retired on or after January 1,
2010 will be subject to a limit on County reimbursements equal to the sum of the Blue Shield
HMO premium, Delta DPO and vision premiums.
Healthcare Premiums
The following table shows January 1, 2016 monthly PERS Health (PEMHCA) premiums for
retirees within the Other Northern California region (Bay Area/Sacramento for Kaiser).
Dental and vision rates in effect for 2015-16 are also included.
Blue PERS PERS PERS Delta Delta
Shield Kaiser Choice Care Select Premier Dental
HMO HMO PPO PPO PPO Dental PPO Vision
Basic Plan
Retiree $ 964.91 $ 755.27 $ 795.57 $ 886.15 $ 727.47 $ 32.50 $ 29.90 $ 14.15
Retiree+1 1,929.82 1,510.54 1,591.14 1,772.30 1,454.94 70.20 65.10 14.15
Family 2,508.77 1,963.70 2,068.48 2,303.99 1,891.42 104.20 102.30 14.15
Medicare Supplemental
Retiree N/A $ 297.23 $ 366.38 $ 408.04 $ 366.38 N/A N/A N/A
Retiree+1 N/A 594.46 732.76 816.08 732.70 N/A N/A N/A
Family N/A 891.69 1,099.14 1,224.12 1,018.41 N/A N/A N/A
Funding Policy
As required by GASB 45, an actuary will determine the County's Annual Required
Contributions (ARC) at least once every two fiscal years. The ARC is calculated in
accordance with certain parameters, and includes (1) the Normal Cost for one year, and
(2) a component for amortization of the total unfunded actuarial accrued liability (UAL) over
a period not to exceed 30 years.
GASB 45 does not require pre-funding of OPEB benefits. Therefore, the County's funding
policy is to continue to pay healthcare premiums for retirees as they fall due. However, the
County has elected to establish a trust for the Postemployments Benefits in April 2015.
FY2015-2016 contribution of$686,869 to the trust was made on July 25, 2016.
The Board of Supervisors reserves the authority to review and amend this funding policy
from time to time, in order to ensure that the funding policy continues to best suit the
circumstances of the County.
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COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation/(Asset)
The following table shows the components of the County's Annual OPEB Cost for the fiscal
year ended June 30, 2016, the amount actually contributed to the plan, and changes in the
County's Net OPEB Obligation/(Asset):
Annual Required Contribution (ARC) for 2016-2017 $ 7,710,808
Intrest on Net OPEB Obligation 1,078,447
Amortization Adjustment to ARC (1,559,167)
Annual OPEB Cost 2016-17 7,230,088
Employer Contribution* (3,772,222)
Change in Net OPEB Obligation 2016-17 3,457,866
Net OPEB Obligation -June 30, 2016 26,961,184
Net OPEB Obligation -June 30, 2017 $ 30,419,050
*multiplied by the implicit subsidy factor 1.5038, see page 6 of June 30, 2015 valuation report
The County's Annual OPEB Cost, the percentage of Annual OPEB Cost contributed to the
plan, and the Net OPEB Obligation/(Asset) for the fiscal years ended June 30, 2015, 2016,
and 2017 are as follows:
Percentage
Actual of Annual Net OPEB
Annual Employer OPEB Cost Obligation
Year Ended OPEB Cost Contribution Contributed (Asset)
6/30/15 $ 5,073,559 $ 2,403,577 47.37 % $ 23,558,715
6/30/16 7,290,755 3,888,286 53.33 % 26,961,184
6/30/17 7,230,088 3,772,222 52.17 % 30,419,050
The general fund and the special revenue funds have typically been used in prior years to
liquidate the net OPEB obligation.
Schedule of Funding Progress
The funded status of the plan as of the most recent three actuarial valuations was as
follows:
Projected
Unit Credit UAAL as a
Actual Actuarial Actuarial Unfunded Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (UAAL) Ratio Payroll Payroll
July 1,2015 - 63,812,459 63,812,459 -% 114,246,103 55.86%
(89)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED)
Schedule of Funding Progress (Continued)
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend.
Amounts determined regarding the funded status of the plan and the Annual Required
Contributions of the County are subject to continual revision as actual results are compared
with past expectations and new estimates are made about the future. The schedule of
funding progress, presented as required supplementary information following the notes to
the financial statements, presents multiyear trend information that shows whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The methods and assumptions
used include techniques that are designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
The plan's most recent actuarial valuation was performed as of July 1, 2015. In that
valuation, the Projected Unit Credit (PUC) Cost Method was used. The actuarial
assumptions included a 4.5% investment rate of return (net of administrative expenses) and
an annual healthcare cost trend rate of 8% initially, reduced by decrements to an ultimate
rate of 5% after 3 years. These assumptions reflect an implicit 3% general inflation
assumption. The County's unfunded actuarial accrued liability is being amortized as a level
dollar amount on an open basis over 30 years. The remaining amortization period as of
June 30, 2016 was 28 years. The County's plan is considered a single-employer plan under
GASB 45.
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COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 9 RISK MANAGEMENT
The County is exposed to various risk of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The County has three risk management funds (Internal Service Funds) to consolidate the
County's insurance programs that are partially self-insured. Fund revenues are primarily
premium charges to other funds and are planned to equal estimated expenses resulting
from self-insurance programs, liability insurance coverage in excess of the self-insured
amount, and operating expenses. The primary activities of the funds consist of risk
management programs related to the following:
General Liability Insurance
Unemployment Insurance
Workers' Compensation Insurance
For general liability and workers' compensation claims, the County is a participant in the
California State Association of Counties (CSAC) — Excess Insurance Authority excess
liability insurance program. The County maintains a self-insured retention (SIR) of $100,000
per occurrence for its general liability program and $125,000 for its workers' compensation
program. The purpose of the pool is to spread the adverse effects of losses among the
member agencies. The County pays an annual basic premium for excess coverage and is
assessed an annual risk premium based on an actuarial review that estimates each of the
program's participant's ultimate liabilities. Should the actual losses among participants be
greater than anticipated, the County will be assessed its pro rata share of that deficiency.
Conversely, if the actual losses are less than anticipated, the County will be refunded its pro
rata share of the excess.
Commercial insurance covers claims between $100,000 and $20,000,000 for general
liability. Settled claims have not exceeded this commercial coverage in any of the past three
fiscal years.
The County is fully self-insured for its unemployment insurance program. Quarterly billings
from the State Employment Development Department are sent to the County's claims
reviewers, R.E. Harrington, Inc. After the claims are reviewed by R.E. Harrington, Inc., they
are turned over to the County for payment.
It is the County's policy to accrue to the Internal Service Fund the estimated liability, as
determined with the assistance of independent actuaries, for claims in cases where such
amounts are reasonably determinable and where the likelihood of liability exists.
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COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 9 RISK MANAGEMENT(CONTINUED)
All operating funds participate in the program and make payments to the insurance funds
based on actuarial estimates of the amounts needed to pay prior and current year claims,
and to allow accrual of estimated incurred but not reported claims. These claims liability
estimates are based on the requirements of GASB Statements Nos. 10 and 30 and include
estimate claims incurred but not yet reported as of June 30, 2017. The claims liability
includes all allocated loss adjustment expenses as well as nonincremental claims
adjustment expenses. Changes in the insurance funds' claims liability amount during the
fiscal years ended June 30, 2016 and 2017 were as follows:
Claims
Claims Incurred Claims
Liability and Changes Claim Liability
Fiscal Year July 1 in Estimates Payments June 30
2015-2016 $ 7,052,000 $ 6,270,081 $ (5,489,081) $ 7,833,000
2016-2017 $ 7,833,000 $ 6,080,102 $ (5,117,102) $ 8,796,000
NOTE 10 CONTINGENCIES
Grants
The County participates in a number of grant programs funded, in whole or part, by federal,
state and other sources. These programs are subject to program compliance audits by the
grantors or their representatives. The audits of these programs for or including the fiscal
year ended June 30, 2017, have not yet been conducted. Additionally, certain audits related
to prior fiscal years have not been finalized. Accordingly, the County's compliance with
applicable grant requirements will be established at some future date. The amount, if any, of
expenditures which may be disallowed by the granting agencies cannot be determined at
this time, although, the County expects such amounts, if any, to be immaterial.
Litigation
The County is a defendant in various matters of litigation. Of these matters, management
and County's legal counsel do not anticipate any material effect on the June 30, 2017
financial statements.
(92)
COUNTY OF BUTTE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2017
NOTE 11 SUBSEQUENT EVENTS
California State Budget
The State is the source for a significant amount of Butte County's revenues. The State has
adopted a balanced budget for the 2017-2018 fiscal year and the County doesn't anticipate
additional state cuts. However, as in the past, if State revenue is cut midyear the County will
make the necessary adjustments to address the reductions.
Debt Issued
On August 22, 2017, the County executed a loan with Compass Bank for $2,658,000. The
funds were received on September 27, 2017. The proceeds are for funding project costs
associated with the Government Campus infrastructure improvements. The obligation will
amortize over 15 years calling for semiannual principal and interest payments due on each
10/16 and 04/16 over the tenor. Debt was issued with an average rate of 2.99%.
Capital Improvement Plan Update, Budget Adjustment and Contract Award for Chico DESS
Facility
On October 24, 2017, the Board approved a new lease for the relocation of the Department
of Employment and Social Services (DESS) to the North Valley Plaza Mall located at 765
East Avenue in Chico. Estimates for total project costs, which includes tenant improvements
to the interior of the building to make it functional for the department, data infrastructure,
furniture necessary to meet the needs of the department, and the move to the new location,
total $3.5 million. The project will be funded by DESS using a combination of fund balance in
the Social Services Fund and departmental revenues. The next phase will require final
construction documents to be drawn, permits to be obtained and the formal solicitation for
construction bids. Staff recommends that the Board approve an update of the Capital
Improvement Plan, approve a budget adjustment from DESS to the Capital Project fund of
$300,000 to facilitate this next phase and approve a $157,462 contract with RGA Office of
Architectural Design, located in Chico, to allow General Services and DESS to proceed.
Staff will return to the Board for approval of a construction contract subsequent to solicitation
for bids.
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REQUIRED SUPPLEMENTARY INFORMATION
COUNTY OF BUTTE, CALIFORNIA
COUNTY EMPLOYEES' RETIREMENT PLAN
(DEFINED BENEFIT PENSION PLAN)
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
YEAR ENDED JUNE 30, 2017
Last 10 Fiscal Years* MISCELLANEOUS PLAN
2017 2016 2015
TOTAL PLAN LIABILITY
Service Cost $ 13,394,007 $ 13,400,002 $ 13,859,395
Interest 43,273,635 41,926,195 40,193,350
Difference Between Expected and Actual Experience (890,486) (4,927,030) -
Changes in Assumptions - (10,024,368) -
Benefit Payments Including Refunds
of Employee Contributions (29,432,567) (28,002,841) (25,453,443)
Change in Allocation (8,101,428) - -
Net Change in Total Pension Liability 18,243,161 12,371,958 28,599,302
Total Pension Liability-Beginning 582,679,617 570,307,659 541,708,357
Total Pension Liability-Ending (A) $ 600,922,778 $ 582,679,617 $ 570,307,659
PLAN FIDUCIARY NET POSITION
Plan to Plan Resource Movement $ (640,888) $ - $ -
Contributions-Employer 12,439,191 11,234,311 10,606,484
Contributions-Employee 6,329,016 6,686,660 6,497,335
Net Investment Income 2,408,140 10,452,870 69,463,572
Benefit Payments Including Refunds of
Employee Contributions (29,432,567) (28,002,841) (25,106,484)
Administrative Expense (278,169) - -
Change of Allocation (6,596,372) (520,140) (346,959)
Net Change in Fiduciary Net Position (15,771,649) (149,140) 61,113,948
Plan Fiduciary Net Position-Beginning 463,023,800 463,172,940 402,058,992
Plan Fiduciary Net Position-Ending (B) $ 447,252,151 $ 463,023,800 $ 463,172,940
Plan Net Pension Liability/(Asset)-Ending (A-B) $ 153,670,627 $ 119,655,817 $ 107,134,719
Plan Fiduciary Net Position as a Percentage of the 74.43% 79.46% 81.21%
Total Pension Liability
Covered Payroll $ 99,700,929 $ 92,240,000 $ 95,493,743
Plan Net Pension Liability/(Asset) as a Percentage of
Covered Payroll 154.13% 129.72% 112.19%
*Amounts presented above were determined as of 6/30. Additional years will be presented as they become
available.
(94)
COUNTY OF BUTTE, CALIFORNIA
COUNTY EMPLOYEES' RETIREMENT PLAN
(DEFINED BENEFIT PENSION PLAN)
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS
YEAR ENDED JUNE 30, 2017
Last 10 Fiscal Years* SAFETY PLAN
2017 2016 2015
TOTAL PLAN LIABILITY
Service Cost $ 4,747,270 $ 4,630,445 $ 4,896,054
Interest 12,479,374 11,705,847 11,071,603
Difference Between Expected and Actual Experience 424,701 (1,153,098) -
Changes in Assumptions - (3,063,979) -
Benefit Payments Including Refunds of
Employee Contributions (6,924,924) (6,490,975) (5,952,108)
Net Change in Total Pension Liability 10,726,421 5,628,240 10,015,549
Total Pension Liability-Beginning 163,793,187 158,164,947 148,149,398
Total Pension Liability-Ending (A) $ 174,519,608 $ 163,793,187 $ 158,164,947
PLAN FIDUCIARY NET POSITION
Plan to Plan Resource Movement $ (14,804) $ - $ -
Contributions-Employer 4,542,710 4,084,403 3,736,119
Contributions-Employee 1,806,428 1,717,710 1,692,897
Net Investment Income 610,779 2,751,766 18,471,003
Benefit Payments Including Refunds of
Employee Contributions (6,924,924) (6,490,975) (5,952,108)
Other Changes in Fiduciary Net Position (76,770) (141,777) -
Net Change in Fiduciary Net Position (56,581) 1,921,127 17,947,911
Plan Fiduciary Net Position- Beginning 125,965,480 124,044,353 106,096,442
Plan Fiduciary Net Position- Ending (B) $ 125,908,899 $ 125,965,480 $ 124,044,353
Plan Net Pension Liability/(Asset)- Ending (A-B) $ 48,610,709 $ 37,827,707 $ 34,120,594
Plan Fiduciary Net Position as a Percentage of the 72.15% 76.91% 78.43%
Total Pension Liability
Covered Payroll $ 19,250,893 $ 18,457,545 $ 18,120,594
Plan Net Pension Liability/(Asset)as a Percentage of
Covered Payroll 252.51% 204.94% 188.30%
*Amounts presented above were determined as of 6/30. Additional years will be presented as they become
available.
(95)
COUNTY OF BUTTE, CALIFORNIA
COUNTY EMPLOYEES' RETIREMENT PLAN
(DEFINED BENEFIT PENSION PLAN)
SCHEDULE OF PLAN CONTRIBUTIONS
YEAR ENDED JUNE 30, 2017
Contributions in Contributions
*Last 10 Fiscal Years Relation to as a%of
Actuarially Actuarially Contributions Employer's Covered
Determined Required Deficiency Employee Employee
Contribution Contribution (Excess) Payroll Payroll
2017
Miscellaneous Plan $ 12,429,191 $ (12,429,191) $ - $ 99,700,929 12.47 %
Safety Plan 4,542,710 (4,542,710) - 19,250,893 23.60 %
Total $ 16,971,901 $ (16,971,901) $ - $ 118,951,822 14.27 %
2016
Miscellaneous Plan $ 11,935,872 $ (11,935,872) $ - $ 92,240,000 12.94 %
Safety Plan 4,084,403 (4,084,403) - 18,457,545 22.13 %
Total $ 16,020,275 $ (16,020,275) $ - $ 110,697,545 14.47 %
2015
Miscellaneous Plan $ 11,121,405 $ (11,121,405) $ - $ 95,493,743 11.65 %
Safety Plan 3,736,119 (3,736,119) - 18,752,360 19.92 %
Total $ 14,857,524 $ (14,857,524) $ - $ 114,246,103 13.00 %
*Amounts presented above were determined as of 6/30. Additional years will be presented as they become available.
(96)
COUNTY OF BUTTE, CALIFORNIA
OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
SCHEDULE OF FUNDING PROGRESS
YEAR ENDED JUNE 30, 2017
Projected
Unit Credit UAAL as a
Actuary Actuarial Actuarial Unfunded Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (UAAL) Ratio Payroll Payroll
July 1, 2013 $ - $ 38,478,208 $ 38,478,208 - % $ 106,227,594 36.22%
July 1, 2013 - 47,629,292 47,629,292 _ % 110,918,547 42.94%
July 1, 2017 - 63,812,459 63,812,459 _ % 114,246,103 55.86%
Notes to Required Supplementary Information
This information is intended to help users assess the County's OPEB plan's status on a going-concern
basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons
with other public employers.
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MAJOR GOVERNMENTAL FUNDS
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 67,574,000 $ 67,574,000 $ 64,381,818 $ (3,192,182)
Licenses and Permits 3,479,283 3,479,283 3,379,667 (99,616)
Fines, Forfeitures, and Penalties 3,693,217 3,693,217 6,215,992 2,522,775
Use of Money and Property 4,064,146 4,064,146 4,065,530 1,384
Aid from Other Governments 40,355,054 42,691,956 41,601,576 (1,090,380)
Charges for Services 22,028,993 22,060,721 20,314,467 (1,746,254)
Miscellaneous Revenue 2,765,474 2,799,474 3,187,515 388,041
Total Revenues 143,960,167 146,362,797 143,146,565 (3,216,232)
EXPENDITURES
General Government:
Assessor:
Salaries and Benefits 3,172,421 3,172,421 2,844,245 (328,176)
Services and Supplies 233,432 233,432 225,662 (7,770)
Other Charges 31,492 31,492 27,078 (4,414)
Special Items 530,578 530,578 364,753 (165,825)
Auditor-Controller:
Salaries and Benefits 1,925,223 1,925,223 1,758,042 (167,181)
Services and Supplies 192,075 192,075 175,230 (16,845)
Other Charges 7,670 7,670 7,670
Special Items (33,718) (33,718) (82,521) (48,803)
Board of Supervisors:
Salaries and Benefits 658,972 697,353 687,286 (10,067)
Services and Supplies 237,927 199,546 120,070 (79,476)
Other Charges 4,439 4,439 4,439
Special Items 763,005 763,005 729,771 (33,234)
Clerk-Recorder:
Salaries and Benefits 2,099,069 2,049,069 1,772,932 (276,137)
Services and Supplies 1,920,158 2,034,945 1,504,585 (530,360)
Other Charges 15,150 15,363 15,163 (200)
Special Items 474,253 504,253 272,447 (231,806)
County Administration:
Salaries and Benefits 2,968,530 2,968,530 2,613,125 (355,405)
Services and Supplies 1,108,084 1,108,084 642,988 (465,096)
Other Charges 11,587 11,587 11,587
Special Items (470,144) (470,144) (553,061) (82,917)
County Counsel:
Salaries and Benefits 1,394,126 1,412,576 1,389,965 (22,611)
Services and Supplies 947,623 929,173 670,348 (258,825)
Other Charges 12,314 12,314 12,314
Special Items (1,449,570) (1,449,570) (1,486,762) (37,192)
(98)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE (CONTINUED)
GENERALFUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
EXPENDITURES Original Final Actual Final Budget
General Government(Continued)
General Services:
Salaries and Benefits $ 4,621,102 $ 4,340,247 $ 4,270,993 $ (69,254)
Services and Supplies 4,569,535 4,743,529 4,344,606 (398,923)
Other Charges 113,090 127,596 127,595 (1)
Special Items (4,476,851) (3,379,193) (3,379,193) -
General Fund Contingencies:
Appropriation for Contingencies 7,800,000 8,447,621 - (8,447,621)
Human Resources:
Salaries and Benefits 2,279,171 2,196,113 1,842,907 (353,206)
Services and Supplies 656,233 739,291 705,060 (34,231)
Other Charges 180 180 180
Special Items (482,001) (482,001) (550,750) (68,749)
Information Systems:
Salaries and Benefits 2,906,748 2,904,748 2,618,986 (285,762)
Services and Supplies 2,021,776 2,005,793 1,901,802 (103,991)
Other Charges 6,189 9,418 9,418 -
Specialltems (1,704,861) (1,700,107) (1,700,108) (1)
Treasurer-Tax Collector:
Salaries and Benefits 1,986,812 1,943,434 1,802,483 (140,951)
Services and Supplies 1,110,061 1,138,984 990,415 (148,569)
Other Charges 6,703 13,358 13,357 (1)
Special Items 121,651 129,451 77,333 (52,118)
Nondepartmental:
Services and Supplies 2,292,207 2,292,207 2,135,632 (156,575)
Other Charges 7,277 7,277 7,277
Special Items (381,839) (381,839) (469,932) (88,093)
Total General Government 40,207,879 41,945,803 28,475,417 13,470,386
Public Protection:
Agriculture:
Salaries and Benefits 1,896,396 1,896,396 1,738,035 (158,361)
Services and Supplies 296,153 296,153 228,386 (67,767)
Other Charges 28,651 28,651 23,230 (5,421)
Special Items 228,444 228,444 225,316 (3,128)
County Administration:
Salaries and Benefits 214,382 214,382 180,704 (33,678)
Services and Supplies 86,586 229,055 154,791 (74,264)
Other Charges 1,946 285,142 92,800 (192,342)
Special Items 62,049 62,049 55,013 (7,036)
Development Services:
Salaries and Benefits 3,427,862 3,427,862 2,930,964 (496,898)
Services and Supplies 1,502,199 1,499,062 1,086,344 (412,718)
Other Charges 13,883 17,020 17,019 (1)
Capital Assets 33,000 33,000 29,032 (3,968)
Special Items 723,558 723,558 585,699 (137,859)
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COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE (CONTINUED)
GENERALFUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
EXPENDITURES Original Final Actual Final Budget
Public Protection (Continued):
District Attorney:
Salaries and Benefits $ 10,832,414 $ 10,847,389 $ 10,085,290 $ (762,099)
Services and Supplies 1,335,898 1,699,633 1,555,359 (144,274)
Other Charges 72,513 82,582 82,581 (1)
Capital Assets - 80,000 78,410 (1,590)
Special Items 943,744 974,744 629,767 (344,977)
Fire:
Salaries and Benefits 139,695 139,695 100,296 (39,399)
Services and Supplies 16,997,559 17,011,429 15,914,888 (1,096,541)
Other Charges 76,371 76,371 76,333 (38)
Capital Assets 600,000 558,724 96,578 (462,146)
Special Items 403,609 522,015 522,014 (1)
Grand Jury:
Services and Supplies 121,318 121,318 65,606 (55,712)
Special Items 6,217 6,217 6,192 (25)
Probation:
Salaries and Benefits 14,927,410 14,927,410 13,961,027 (966,383)
Services and Supplies 3,356,983 3,356,983 3,245,740 (111,243)
Other Charges 883,191 883,191 880,122 (3,069)
Capital Assets - 26,813 26,813
Special Items 1,188,209 1,188,209 1,145,760 (42,449)
PW-General Fund:
Salaries and Benefits 501,055 503,623 495,775 (7,848)
Services and Supplies 202,502 199,934 88,056 (111,878)
Other Charges 205,620 205,620 167,116 (38,504)
Special Items 45,874 45,874 28,201 (17,673)
Sheriff-Coroner:
Salaries and Benefits 31,379,078 31,338,433 30,539,451 (798,982)
Services and Supplies 12,099,481 12,675,828 11,873,707 (802,121)
Other Charges 600,858 1,007,813 1,007,813 -
Capital Assets 162,000 976,053 509,331 (466,722)
Special Items 2,448,767 2,596,367 2,252,490 (343,877)
Water and Resource Conservation:
Salaries and Benefits 556,400 556,400 519,441 (36,959)
Services and Supplies 300,145 428,745 296,231 (132,514)
Other Charges - 1,400 1,243 (157)
Special Items 22,580 22,580 22,536 (44)
Nondepartmental:
Services and Supplies 3,558,598 3,558,598 3,542,444 (16,154)
Other Charges 2,345,685 2,345,685 1,612,814 (732,871)
Special Items 84,416 84,416 84,371 (45)
Total Public Protection 114,913,299 117,990,866 108,861,129 9,129,737
(100)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE (CONTINUED)
GENERALFUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
EXPENDITURES Original Final Actual Final Budget
Education:
Farm Home and 4 H:
Salaries and Benefits $ 208,785 $ 208,785 $ 185,277 $ 23,508
Services and Supplies 81,756 81,756 68,731 13,025
Other Charges 6,000 6,000 5,997 3
Special Items 77,742 77,742 77,700 42
Library:
Salaries and Benefits 2,252,671 2,262,867 1,901,594 361,273
Services and Supplies 543,507 578,888 578,887 1
Other Charges 75,477 75,477 71,100 4,377
Capital Assets 50,000 50,000 26,687 23,313
Special Items 1,012,145 1,181,145 1,140,368 40,777
Total Education 4,308,083 4,522,660 4,056,341 466,319
Recreation and Culture:
General Services:
Services and Supplies 3,454 3,454 5,263 1,809
Total Recreation and Culture 3,454 3,454 5,263 (1,809)
Debt Service 9,236 9,236 9,235 1
Contingencies - - - -
Total Expenditures 159,441,951 164,472,019 141,407,385 23,064,634
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER) EXPENDITURES (15,481,784) (18,109,222) 1,739,180 19,848,402
OTHER FINANCING SOURCES (USES)
Transfers In 15,501,476 17,045,501 580,936 (16,464,565)
Transfers Out (23,840,761) (26,278,269) (9,651,370) 16,626,899
Total Other Financing Sources(Uses) (8,339,285) (9,232,768) (9,070,434) 162,334
NET CHANGE IN FUND BALANCES (23,821,069) (27,341,990) (7,331,254) 20,010,736
Fund Balances-Beginning 58,271,440 58,271,440 58,271,440 -
FUND BALANCES-ENDING $ 34,450,371 $ 30,929,450 $ 50,940,186 $ 20,010,736
(101)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
SOCIAL SERVICES FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ - $ - $ - $ -
Licenses and Permits 38,000 38,000 98,928 60,928
Fines, Forfeitures, and Penalties 16,000 16,000 9,546 (6,454)
Use of Money and Property 47,534 47,534 43,092 (4,442)
Aid from Other Governments 140,264,235 141,620,661 127,653,262 (13,967,399)
Charges for Services 223,744 223,744 212,125 (11,619)
Miscellaneous Revenue 10,000 10,000 1,309 (8,691)
Total Revenues 140,599,513 141,955,939 128,018,262 (13,937,677)
EXPENDITURES
Public Protection:
Salaries and Benefits 571,968 571,968 511,973 59,995
Services and Supplies 28,440 53,440 8,826 44,614
Other Charges 263,615 238,615 120,529 (273,358)
Public Assistance:
Salaries and Benefits 49,309,467 49,309,467 42,395,993 6,913,474
Services and Supplies 11,088,112 10,653,182 8,630,601 2,022,581
Other Charges 80,560,695 82,065,271 75,427,038 6,638,233
Capital Assets 116,000 116,000 - 116,000
Total Expenditures 141,938,297 143,007,943 127,094,960 15,521,539
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (1,338,784) (1,052,004) 923,302 1,583,862
OTHER FINANCING SOURCES (USES)
Transfers In 21,790,791 22,020,498 809,250 (21,211,248)
Transfers Out (21,131,953) (21,455,705) (685,428) 20,770,277
Total Other Financing Sources (Uses) 658,838 564,793 123,822 (440,971)
NET CHANGE IN FUND BALANCES (679,946) (487,211) 1,047,124 1,142,891
Fund Balances-Beginning 5,163,589 5,163,589 5,163,589 -
FUND BALANCES -ENDING $ 4,483,643 $ 4,676,378 $ 6,210,713 $ 1,142,891
(102)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
BEHAVIORAL HEALTH FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ - $ - $ - $ -
Licenses and Permits - - - -
Fines, Forfeitures, and Penalties 83,168 83,168 169,038 85,870
Use of Money and Property 10,473,281 115,641 121,116 5,475
Aid from Other Governments 52,001,704 64,162,936 66,960,135 2,797,199
Charges for Services 3,309,231 3,315,031 3,236,960 (78,071)
Miscellaneous Revenue - - 67,596 67,596
Total Revenues 65,867,384 67,676,776 70,554,845 2,878,069
EXPENDITURES
Health and Sanitation:
Salaries and Benefits 31,632,896 31,413,273 28,898,690 2,514,583
Services and Supplies 31,000,971 33,862,383 29,648,535 4,213,848
Other Charges 3,291,255 3,394,472 2,924,136 470,336
Capital Assets 105,450 126,050 99,964 26,086
Total Expenditures 66,030,572 68,796,178 61,571,325 7,224,853
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (163,188) (1,119,402) 8,983,520 10,102,922
OTHER FINANCING SOURCES (USES)
Transfers In 12,144,936 13,101,150 856,778 (12,244,372)
Transfers Out (11,562,994) (12,369,208) (973,155) 11,396,053
Total Other Financing Sources(Uses) 581,942 731,942 (116,377) (848,319)
NET CHANGE IN FUND BALANCES 418,754 (387,460) 8,867,143 9,254,603
Fund Balances-Beginning 9,559,159 9,559,159 9,559,159 -
FUND BALANCES -ENDING $ 9,977,913 $ 9,171,699 $ 18,426,302 $ 9,254,603
(103)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
ROAD FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Licenses and Permits $ 45,000 $ 45,000 $ 46,671 $ 1,671
Fines, Forfeitures, and Penalties 17,000 17,000 4,200 (12,800)
Use of Money and Property 105,000 105,000 (3,521) (108,521)
Aid from Other Governments 20,217,206 20,217,206 11,809,616 (8,407,590)
Charges for Services 2,652,000 2,652,000 2,822,122 170,122
Miscellaneous Revenue 59,600 59,600 177,138 117,538
Total Revenues 23,095,806 23,095,806 14,856,226 (8,239,580)
EXPENDITURES
Public Way and Facilities:
Salaries and Benefits 8,281,724 8,281,724 7,759,037 522,687
Services and Supplies 17,053,423 17,253,423 10,583,443 6,669,980
Other Charges 1,391,894 1,391,894 944,013 447,881
Capital Assets 490,000 490,000 399,981 90,019
Appropriation for Contingencies 1,000,000 800,000 - 800,000
Total Expenditures 28,217,041 28,217,041 19,686,474 8,530,567
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (5,121,235) (5,121,235) (4,830,248) 290,987
OTHER FINANCING SOURCES (USES)
Transfers In 2,229,958 2,229,958 1,578,630 (651,328)
Transfers Out - - (113,881) (113,881)
Total Other Financing Sources(Uses) 2,229,958 2,229,958 1,464,749 (765,209)
NET CHANGE IN FUND BALANCES (2,891,277) (2,891,277) (3,365,499) (474,222)
Fund Balances-Beginning 6,655,207 6,655,207 6,655,207 -
FUND BALANCES -ENDING $ 3,763,930 $ 3,763,930 $ 3,289,708 $ (474,222)
(104)
COUNTY OF BUTTE, CALIFORNIA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2017
BUDGETARY INFORMATION
Budgets are prepared on the modified accrual basis of accounting consistent with GAAP. In
accordance with the provisions of Sections 29000 and 29143, inclusive, of the California Government
Code and other statutory provisions, commonly known as the County Budget Act, the County prepares
a budget for each fiscal year on or before August 30. Budgeted expenditures are enacted into law
through the passage of an Appropriation Resolution. This ordinance mandates the maximum
authorized expenditures for the fiscal year and cannot be exceeded except by subsequent
amendments to the budget by the County's Board of Supervisors.
An operating budget is adopted each fiscal year for all Governmental Funds except. Expenditures are
controlled at the object level within budget units for the County. The object level within a budget unit is
the level at which expenditures may not legally exceed appropriations. Any amendments or transfers of
appropriations between object levels within the same budget unit or between departments or funds are
authorized by the County Administrative Officer's office and must be approved by the Board of
Supervisors. The Board of Supervisors must approve supplementary appropriations normally financed
by unanticipated revenues during the year. Pursuant to Board Resolution, the County Administrative
Officer is authorized to approve transfers and revision of appropriations under $50,000 within a single
budget unit as deemed necessary and appropriate. Budgeted amounts in the budgetary financial
schedules are reported as originally adopted and as amended during the fiscal year by resolutions
approved by the Board of Supervisors.
The budget approved by the Board of Supervisors for the General Fund includes budgeted
expenditures and reimbursements for amounts disbursed on behalf of other Governmental Funds.
Actual reimbursements for these items have been eliminated in the accompanying budgetary financial
schedules. Accordingly, the related budgets for these items have also been eliminated in order to
provide a meaningful comparison of actual and budgeted results of operations.
The budgets for the governmental funds may include an object level known as "intrafund transfers" in
the charges for appropriations. This object level is an accounting mechanism used by the County to
show reimbursements between operations within the same fund (an example would be the General
Fund).
(105)
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SUPPLEMENTARY INFORMATION
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NONMAJOR GOVERNMENTAL FUNDS
COUNTY OF BUTTE, CALIFORNIA
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue funds are established to finance particular governmental activities and are financed
by specific taxes or other revenues. Such funds are authorized by statutory provisions to pay for certain
activities of a continuing nature. The nonmajor Special Revenue funds are listed below:
The Public Health Fund was established to provide public health services to the residents of Butte
County.
The Equipment Replacement Fund was established to provide financing for equipment purchases.
The Transit Fund was established to account for the local transportation tax funds.
The Housing and Community Development Fund accounts for revenues and expenditures relating to
housing and community improvement and development.
The Fish and Game Fund is used to account for fines and forfeitures received under Section 13003 of
the State of California Fish and Game Code and for other revenue and expenditures for the
propagation and conservation of fish and game. The Board of Supervisors authorizes expenditures on
the advice of the Fish and Game Commission.
The Child Support Services Fund was established by AB 196, AB 150, and SB 542 during fiscal year
2000-01 to provide separate fund accountability as required. These legislative bills mandated that all
Family Support Divisions located in the District Attorney's Offices become separate and independent
departments. Child Support Services establishes paternity, obtains and enforces court orders for child
support, collects and distributes payments, and provides community outreach about those services for
the benefit of minor children.
The County Service Areas Funds account for special district funds that provide sewer, drainage, fire,
and street lighting and maintenance to specific areas in the County and are financed by property taxes
and user charges.
The IHSS Public Authority Fund allows for the maintenance of a registry and referral system to assist
consumers in finding qualified in-home supportive services (IHSS) personnel as well as training of and
support for providers and recipients of IHSS. Revenues primarily come from grants.
The Impact Fee Fund was established to account for Impact Fees, Mitigation Fees, or Local Agency
Improvement Fees that are charged by local agencies to developers for the purpose of defraying the
cost of public facilities that will be needed in relation to the development project.
(106)
COUNTY OF BUTTE, CALIFORNIA
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
DEBT SERVICE FUND is used to account for the accumulation of resources for, and the payment of,
general long-term debt.
CAPITAL PROJECTS FUND is used to account for financial resources to be used for the acquisition of
land or acquisition or construction of major facilities other than those financed by the proprietary fund
types.
PERMANENT FUND is used to account for and report resources that are restricted to the extent that
only earnings, and not principal, may be used for purposes that support the reporting government's
programs, that is, for the benefit of the government or its citizenry.
(107)
COUNTY OF BUTTE, CALIFORNIA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Special Revenue Funds
Housing and
Public Equipment Community
Health Replacement Transit Development
ASSETS
Cash and Investments $ 14,313,191 $ 7,138,882 $ 5,230 $ 50,845
Cash with Fiscal Agent - - - -
Imprest Cash 650 -
Due from Other Funds - 1,358 - -
Interest Receivable 37,321 20,622 2,301 (61)
Accounts Receivable 30,754 - - 184,394
Due from Other Governments 2,024,564 83,278 254,964
Inventory - - -
Loans Receivable - - - 4,391,498
Total Assets $ 16,406,480 $ 7,160,862 $ 90,809 $ 4,881,640
LIABILITIES AND FUND BALANCES
Liabilities:
Due to Other Funds $ - $ - $ - $ 695,537
Accounts Payable 265,861 3,712 83,664 711
Accrued Payroll 455,141 - - -
Unearned Revenue - - - -
Total Liabilities 721,002 3,712 83,664 696,248
Deferred Inflows of Resources:
Unavailable Revenue 1,192,782 - - 254,964
Fund Balances:
Nonspendable - - - -
Restricted 14,492,696 7,157,150 7,145 3,930,428
Total Fund Balances 14,492,696 7,157,150 7,145 3,930,428
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 16,406,480 $ 7,160,862 $ 90,809 $ 4,881,640
(108)
COUNTY OF BUTTE, CALIFORNIA
COMBINING BALANCE SHEET(CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Special Revenue Funds
Child County
Fish and Support Service IHSS Public Impact
Game Services Areas Authority Fees
ASSETS
Cash and Investments $ 125,112 $ 248,944 $ 9,143,839 $ 149,458 $ 8,812,154
Cash with Fiscal Agent - - - - -
Imprest Cash 2,000 -
Due from Other Funds - - 6,532 -
Interest Receivable 308 1,010 24,536 23,628
Accounts Receivable - - - - 12,215
Due from Other Governments 75,860 -
Inventory -
Loans Receivable - - - - -
Total Assets $ 125,420 $ 251,954 $ 9,174,907 $ 225,318 $ 8,847,997
LIABILITIES AND FUND BALANCES
Liabilities:
Due to Other Funds $ - $ - $ 107,740 $ - $
Accounts Payable 3,782 380 27,813 136
Accrued Payroll - 248,564 - 8,828
Unearned Revenue - - - -
Total Liabilities 3,782 248,944 135,553 8,964
Deferred Inflows of Resources:
Unavailable Revenue - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 121,638 3,010 9,039,354 216,354 8,847,997
Total Fund Balances 121,638 3,010 9,039,354 216,354 8,847,997
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 125,420 $ 251,954 $ 9,174,907 $ 225,318 $ 8,847,997
(109)
COUNTY OF BUTTE, CALIFORNIA
COMBINING BALANCE SHEET(CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2017
Debt Capital
Service Projects Permanent
Fund Fund Fund Total
ASSETS
Cash and Investments $ 11,495,995 $ 5,762,583 $ 16,272 $ 57,262,505
Cash with Fiscal Agent 375,882 - - 375,882
Imprest Cash - 2,650
Due from Other Funds - - - 7,890
Interest Receivable 31,296 14,506 43 155,510
Accounts Receivable - - - 227,363
Due from Other Governments 117,660 2,556,326
Inventory - -
Loans Receivable - - - 4,391,498
Total Assets $ 12,020,833 $ 5,777,089 $ 16,315 $ 64,979,624
LIABILITIES AND FUND BALANCES
Liabilities:
Due to Other Funds $ $ - $ $ 803,277
Accounts Payable 397,325 783,384
Accrued Payroll - 712,533
Unearned Revenue - -
Total Liabilities 397,325 2,299,194
Deferred Inflows of Resources:
Unavailable Revenue 117,660 - 1,565,406
Fund Balances:
Nonspendable - - -
Restricted 11,903,173 5,379,764 16,315 61,115,024
Total Fund Balances 11,903,173 5,379,764 16,315 61,115,024
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 12,020,833 $ 5,777,089 $ 16,315 $ 64,979,624
(110)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF REVENUE, EXPENDITURES,
AND CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 2017
Special Revenue Funds
Housing and
Public Equipment Community
Health Replacement Transit Development
REVENUES
Taxes $ $ $ $
Licenses and Permits 88,837
Fines, Forfeits,and Penalties 228,200 -
Revenue from Use of Money and Property 26,018 18,874 6,132 13,154
Aid from Other Governments 13,438,577 - 2,688,012 509,133
Charges for Services 3,583,576 - -
Other 29,273 - -
Total Revenues 17,394,481 18,874 2,694,144 522,287
EXPENDITURES
Current:
General Government - 244,529 - -
Public Protection 1,052,302 -
Public Ways and Facilities - - 1,129,585
Health and Sanitation 16,860,852 - -
Public Assistance - 697,751
Education -
Recreation and Cultural Services
Debt Service:
Principal
Interest - - - -
Total Expenditures 16,860,852 1,296,831 1,129,585 697,751
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 533,629 (1,277,957) 1,564,559 (175,464)
OTHER FINANCING SOURCES(USES)
Sale of Capital Asset - -
Capital Leases - -
Transfers in 724,304 3,895,901
Transfers out (176,267) (240,000) (1,564,709) (90,064)
Total Other Financing Sources(Uses) 548,037 3,655,901 (1,564,709) (90,064)
NET CHANGE IN FUND BALANCES 1,081,666 2,377,944 (150) (265,528)
FundBalances-Beginning 13,411,030 4,779,206 7,295 4,195,956
FUND BALANCES-ENDING $ 14,492,696 $ 7,157,150 $ 7,145 $ 3,930,428
(111)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF REVENUE, EXPENDITURES,
AND CHANGES IN FUND BALANCE (CONTINUED)
YEAR ENDED JUNE 30, 2017
Special Revenue Funds
Child County
Fish and Support Service IHSS Public Impact
Game Services Areas Authority Fees
REVENUES
Taxes $ $ $ 840,903 $ $
Licenses and Permits -
Fines, Forfeits,and Penalties 28,229 -
Revenue from Use of Money and Property 150 14,879 16,739 5,019
Aid from Other Governments - 7,534,521 11,169 307,189 -
Charges for Services 23,122 558,757 - 913,482
Other - - - - -
Total Revenues 28,379 7,572,522 1,427,568 307,189 918,501
EXPENDITURES
Current:
General Government - - - - -
Public Protection 19,676 7,474,210 445,746
Public Ways and Facilities - - 213,709
Health and Sanitation 309,475 -
Public Assistance - 307,940
Education - -
Recreation and Cultural Services 152,389
Debt Service:
Principal -
Interest - - 193 -
Total Expenditures 19,676 7,474,210 1,121,512 307,940 -
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 8,703 98,312 306,056 (751) 918,501
OTHER FINANCING SOURCES(USES)
Sale of Capital Asset - - - - -
Capital Leases
Transfers in
Transfers out (97,292) (324,037)
Total Other Financing Sources(Uses) - (97,292) (324,037)
NET CHANGE IN FUND BALANCES 8,703 1,020 306,056 (751) 594,464
Fund Balances-Beginning 112,935 1,990 8,733,298 217,105 8,253,533
FUND BALANCES-ENDING $ 121,638 $ 3,010 $ 9,039,354 $ 216,354 $ 8,847,997
(112)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF REVENUE, EXPENDITURES,
AND CHANGES IN FUND BALANCE (CONTINUED)
YEAR ENDED JUNE 30, 2017
Debt Capital
Service Projects Permanent
Fund Fund Fund Total
REVENUES
Taxes $ $ $ $ 840,903
Licenses and Permits 88,837
Fines, Forfeits,and Penalties 256,429
Revenue from Use of Money and Property 26,064 10,352 29 137,410
Aid from Other Governments 112,480 1,580 - 24,602,661
Charges for Services - 684,060 5,762,997
Other - - - 29,273
Total Revenues 138,544 695,992 29 31,718,510
EXPENDITURES
Current:
General Government 7,165,578 3,363,530 - 10,773,637
Public Protection - - 8,991,934
Public Ways and Facilities 1,343,294
Health and Sanitation 17,170,327
Public Assistance 1,005,691
Education -
Recreation and Cultural Services - 152,389
Debt Service: -
Principal 1,197,645 1,197,645
Interest 2,221,809 2,222,002
Total Expenditures 10,585,032 3,363,530 42,856,919
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (10,446,488) (2,667,538) 29 (11,138,409)
OTHER FINANCING SOURCES(USES)
Sale of Capital Asset - - -
Capital Leases 7,166,380 - 7,166,380
Transfers in 4,013,287 1,819,605 10,453,097
Transfers out - (58,491) (2,550,860)
Total Other Financing Sources(Uses) 11,179,667 1,761,114 - 15,068,617
NET CHANGE IN FUND BALANCES 733,179 (906,424) 29 3,930,208
Fund Balances-Beginning 11,169,994 6,286,188 16,286 57,184,816
FUND BALANCES-ENDING $ 11,903,173 $ 5,379,764 $ 16,315 $ 61,115,024
(113)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PUBLIC HEALTH FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Licenses and Permits $ 100,000 $ 100,000 $ 88,837 $ (11,163)
Fines, Forfeitures, and Penalties 259,500 259,500 228,200 (31,300)
Use of Money and Property 104,400 104,400 26,018 (78,382)
Aid from Other Governments 14,678,526 14,697,323 13,438,577 (1,258,746)
Charges for Services 3,650,556 3,650,556 3,583,576 (66,980)
Miscellaneous Revenue 15,050 15,050 29,273 14,223
Total Revenues 18,808,032 18,826,829 17,394,481 (1,432,348)
EXPENDITURES
Health and Sanitation:
Salaries and Benefits 14,038,173 14,038,173 11,670,035 2,368,138
Services and Supplies 5,408,772 5,427,569 3,923,963 1,503,606
Other Charges 1,728,389 1,728,389 1,162,085 566,304
Capital Assets 390,000 390,000 104,769 285,231
Total Expenditures 21,565,334 21,584,131 16,860,852 4,723,279
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (2,757,302) (2,757,302) 533,629 3,290,931
OTHER FINANCING SOURCES (USES)
Transfers In 1,704,847 1,723,644 724,304 (999,340)
Transfers Out (1,205,543) (1,224,340) (176,267) 1,048,073
Total Other Financing Sources(Uses) 499,304 499,304 548,037 48,733
NET CHANGE IN FUND BALANCES (2,257,998) (2,257,998) 1,081,666 3,339,664
Fund Balances-Beginning 13,411,030 13,411,030 13,411,030 -
FUND BALANCES -ENDING $ 11,153,032 $ 11,153,032 $ 14,492,696 $ 3,339,664
(114)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CHILD SUPPORT SERVICES FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 20,000 $ 20,000 $ 14,879 $ (5,121)
Aid from Other Governments 9,138,313 9,138,313 7,534,521 (1,603,792)
Charges for Services 29,000 29,000 23,122 (5,878)
Miscellaneous Revenue 50 50 - (50)
Total Revenues 9,187,363 9,187,363 7,572,522 (1,614,841)
EXPENDITURES
Public Protection:
Salaries and Benefits 7,713,615 7,713,615 384,294 7,329,321
Services and Supplies 672,917 672,917 6,376,205 (5,703,288)
Other Charges 800,831 800,831 713,711 87,120
Total Expenditures 9,187,363 9,187,363 7,474,210 1,713,153
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES - - 98,312 98,312
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - (97,292) (97,292)
Total Other Financing Sources (Uses) - - (97,292) (97,292)
NET CHANGE IN FUND BALANCES - - 1,020 1,020
Fund Balances-Beginning 1,990 1,990 1,990 -
FUND BALANCES -ENDING $ 1,990 $ 1,990 $ 3,010 $ 1,020
(115)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
COUNTY SERVICE AREA FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Taxes $ 743,278 $ 743,278 $ 840,903 $ 97,625
Use of Money and Property 58,614 58,614 16,739 (41,875)
Aid from Other Governments 11,558 11,558 11,169 (389)
Charges for Services 537,980 538,036 558,757 20,721
Miscellaneous Revenue - - - -
Total Revenues 1,351,430 1,351,486 1,427,568 76,082
EXPENDITURES
Public Protection:
Salaries and Benefits 240,160 255,836 26,237 229,599
Other Charges 443,635 440,458 419,509 20,949
Appropriation for Contingencies 20,197 20,197 - 20,197
Public Way and Facilities:
Salaries and Benefits 108,136 114,309 86,676 27,633
Other Charges 433,635 440,458 127,033 313,425
Appropriation for Contingencies 20,197 20,197 - 20,197
Health and Sanitation:
Salaries and Benefits 273,239 286,581 170,249 116,332
Other Charges 107,639 193,619 139,226 54,393
Appropriation for Contingencies 2,800 1,800 - 1,800
Recreation and Culture:
Salaries and Benefits 149,226 149,226 128,960 20,266
Other Charges 3,050 51,050 23,429 27,621
Appropriation for Contingencies 4,000 4,000 - 4,000
Debt Service 3,400 3,400 193 3,207
Total Expenditures 1,809,314 1,981,131 1,121,512 859,619
NET CHANGE IN FUND BALANCES (457,884) (629,645) 306,056 935,701
Fund Balances-Beginning 8,733,298 8,733,298 8,733,298 -
FUND BALANCES -ENDING $ 8,275,414 $ 8,103,653 $ 9,039,354 $ 935,701
(116)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
EQUIPMENT REPLACEMENT FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ - $ - $ 18,874 $ 18,874
Total Revenues - - 18,874 18,874
EXPENDITURES
General Government:
Other Charges 132,192 132,192 131,419 773
Capital Assets 53,500 118,500 113,110 5,390
Public Protection:
Other Charges 28,799 28,799 (1,428) 30,227
Capital Assets 2,137,800 2,137,800 1,053,730 1,084,070
Total Expenditures 2,352,291 2,417,291 1,296,831 1,120,460
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (2,352,291) (2,417,291) (1,277,957) 1,139,334
OTHER FINANCING SOURCES (USES)
Transfers In 3,430,050 3,995,050 3,895,901 (99,149)
Transfers Out (240,000) (240,000) (240,000) -
Total Other Financing Sources(Uses) 3,190,050 3,755,050 3,655,901 (99,149)
NET CHANGE IN FUND BALANCES 837,759 1,337,759 2,377,944 1,040,185
Fund Balances-Beginning 4,779,206 4,779,206 4,779,206 -
FUND BALANCES -ENDING $ 5,616,965 $ 6,116,965 $ 7,157,150 $ 1,040,185
(117)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
FISH AND GAME FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Fines, Forfeitures, and Penalties $ 21,000 $ 21,000 $ 28,229 $ 7,229
Use of Money and Property 1,300 1,300 150 (1,150)
Total Revenues 22,300 22,300 28,379 6,079
EXPENDITURES
Public Protection:
Services and Supplies 31,662 41,912 20,805 21,107
Other Charges (1,112) (1,112) (1,129) 17
Total Expenditures 30,550 40,800 19,676 21,124
NET CHANGE IN FUND BALANCES (8,250) (18,500) 8,703 27,203
Fund Balances-Beginning 112,935 112,935 112,935 -
FUND BALANCES -ENDING $ 104,685 $ 94,435 $ 121,638 $ 27,203
(118)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
HOUSING AND COMMUNITY DEVELOPMENT FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 300 $ 300 $ 13,154 $ 12,854
Aid from Other Governments 1,488,000 1,488,000 509,133 (978,867)
Total Revenues 1,488,300 1,488,300 522,287 (966,013)
EXPENDITURES
Public Assistance:
Services and Supplies 503,000 468,484 431,506 36,978
Other Charges 552,000 590,516 266,245 324,271
Total Expenditures 1,055,000 1,059,000 697,751 361,249
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 433,300 429,300 (175,464) (604,764)
OTHER FINANCING SOURCES (USES)
Transfers In 1,272,000 1,272,000 - (1,272,000)
Transfers Out (1,470,000) (1,466,000) (90,064) 1,375,936
Total Other Financing Sources (Uses) (198,000) (194,000) (90,064) 103,936
NET CHANGE IN FUND BALANCES 235,300 235,300 (265,528) (500,828)
Fund Balances-Beginning 4,195,956 4,195,956 4,195,956 -
FUND BALANCES -ENDING $ 4,431,256 $ 4,431,256 $ 3,930,428 $ (500,828)
(119)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
IHSS PUBLIC AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Aid from Other Governments $ - $ 358,029 $ 307,189 $ (50,840)
Total Revenues - 358,029 307,189 (50,840)
EXPENDITURES
Public Assistance:
Salaries and Benefits 1,469 284,292 251,880 32,412
Services and Supplies - 53,936 39,944 13,992
Other Charges 11,798 19,801 16,116 3,685
Total Expenditures 13,267 358,029 307,940 50,089
NET CHANGE IN FUND BALANCES (13,267) - (751) (751)
FundBalances-Beginning 217,105 217,105 217,105 -
FUND BALANCES -ENDING $ 203,838 $ 217,105 $ 216,354 $ (751)
(120)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
IMPACT FEES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 37,437 $ 37,437 $ 5,019 $ (32,418)
Charges for Services 857,073 857,073 913,482 56,409
Total Revenues 894,510 894,510 918,501 23,991
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 894,510 894,510 918,501 23,991
OTHER FINANCING SOURCES (USES)
Transfers In 42,000 42,000 - (42,000)
Transfers Out (903,074) (1,012,995) (324,037) 688,958
Total Other Financing Sources (Uses) (861,074) (970,995) (324,037) 646,958
NET CHANGE IN FUND BALANCES 33,436 (76,485) 594,464 670,949
Fund Balances-Beginning 8,253,533 8,253,533 8,253,533 -
FUND BALANCES -ENDING $ 8,286,969 $ 8,177,048 $ 8,847,997 $ 670,949
(121)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
TRANSIT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 5,000 $ 5,000 $ 6,132 $ 1,132
Aid from Other Governments 3,087,191 3,087,191 2,688,012 (399,179)
Total Revenues 3,092,191 3,092,191 2,694,144 (398,047)
EXPENDITURES
Public Way and Facilities:
Services and Supplies 1,413,205 1,413,205 1,130,568 282,637
Other Charges (972) (972) (983) 11
Total Expenditures 1,412,233 1,412,233 1,129,585 282,648
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 1,679,958 1,679,958 1,564,559 (115,399)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out (1,679,958) (1,679,958) (1,564,709) 115,249
Total Other Financing Sources(Uses) (1,679,958) (1,679,958) (1,564,709) 115,249
NET CHANGE IN FUND BALANCES - - (150) (150)
Fund Balances-Beginning 7,295 7,295 7,295 -
FUND BALANCES -ENDING $ 7,295 $ 7,295 $ 7,145 $ (150)
(122)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ - $ - $ 26,064 $ 26,064
Aid from Other Governments - - 112,480 112,480
Total Revenues - - 138,544 138,544
EXPENDITURES
General Government:
Services and Supplies 9,146 9,146 9,146 -
Other Charges (9,943) (9,943) 7,156,432 (7,166,375)
Debt Service 3,513,357 3,513,357 3,419,454 93,903
Total Expenditures 3,512,560 3,512,560 10,585,032 (7,072,472)
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (3,512,560) (3,512,560) (10,446,488) (6,933,928)
OTHER FINANCING SOURCES (USES)
Capital Leases - - 7,166,380 7,166,380
Transfers In 3,565,135 4,302,735 4,013,287 (289,448)
Transfers Out - (741,063) - 741,063
Total Other Financing Sources(Uses) 3,565,135 3,561,672 11,179,667 7,617,995
NET CHANGE IN FUND BALANCES 52,575 49,112 733,179 684,067
Fund Balances-Beginning 11,169,994 11,169,994 11,169,994 -
FUND BALANCES -ENDING $ 11,222,569 $ 11,219,106 $ 11,903,173 $ 684,067
(123)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 30,000 $ 30,000 $ 10,352 $ (19,648)
Aid from Other Governments 1,000,000 1,001,580 1,580 (1,000,000)
Charges for Services 685,460 683,880 684,060 180
Miscellaneous Revenue 3,930,750 3,966,750 - (3,966,750)
Total Revenues 5,646,210 5,682,210 695,992 (4,986,218)
EXPENDITURES
General Government:
Services and Supplies 1,035,000 1,135,025 915,730 219,295
Other Charges 550,909 597,998 292,968 305,030
Capital Assets 8,025,902 8,299,788 2,154,832 6,144,956
Total Expenditures 9,611,811 10,032,811 3,363,530 6,669,281
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (3,965,601) (4,350,601) (2,667,538) 1,683,063
OTHER FINANCING SOURCES (USES)
Transfers In 4,191,215 4,576,215 1,819,605 (2,756,610)
Transfers Out (813,000) (818,600) (58,491) 760,109
Total Other Financing Sources(Uses) 3,378,215 3,757,615 1,761,114 (1,996,501)
NET CHANGE IN FUND BALANCES (587,386) (592,986) (906,424) (313,438)
Fund Balances-Beginning 6,286,188 6,286,188 6,286,188 -
FUND BALANCES -ENDING $ 5,698,802 $ 5,693,202 $ 5,379,764 $ (313,438)
(124)
COUNTY OF BUTTE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
PERMANENTFUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Variance with
Original Final Actual Final Budget
REVENUES
Use of Money and Property $ 200 $ 200 $ 29 $ (171)
Total Revenues 200 200 29 (171)
EXCESS (DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 200 200 29 (171)
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
NET CHANGE IN FUND BALANCES 200 200 29 (171)
Fund Balances-Beginning 16,286 16,286 16,286 -
FUND BALANCES -ENDING $ 16,486 $ 16,486 $ 16,315 $ (171)
(125)
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INTERNAL SERVICE FUNDS
COUNTY OF BUTTE, CALIFORNIA
INTERNAL SERVICE FUNDS
Internal Service Funds were established to account for the goods or services furnished by one County
department or agency to other departments or agencies of the County, or to other governments, on a
cost-reimbursement basis.
The Self-Insurance Fund accounts for liability claims against the County, the administration of the
insurance program, and associated legal and adjustment expenses.
The Worker's Compensation Insurance Fund accounts for disability, medical, and rehabilitation
expenses and related costs associated with on-the-job injuries.
The Unemployment Insurance Fund accounts for unemployment compensation claims filed against the
County.
The Medical Liability Insurance Fund accounts for medical compensation claims filed against the
County.
The Miscellaneous Insurance Fund accounts for financing of the County's miscellaneous self-
insurances.
The Utilities Clearing Fund accounts for utilities provided to County departments.
(126)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2017
Self Workers' Unemployment
Insurance Compensation Insurance
ASSETS
Current Assets:
Cash and Investments $ 2,467,742 $ 8,607,446 $ 211,906
Cash and Investments with Fiscal Agent - 157,355 -
Interest Receivable 6,594 23,545 524
Total Current Assets 2,474,336 8,788,346 212,430
Noncurrent Assets:
Capital Assets:
Depreciable:
Equipment 10,671 34,790 -
Accumulated Depreciation (7,292) (34,493) -
Total Capital Assets, Net 10,671 34,790 -
Total Noncurrent Assets 3,379 297 -
Total Assets 2,477,715 8,788,643 212,430
LIABILITIES
Current Liabilities:
Due to Other Funds 712 645 -
Accounts Payable 87,452 16,555 -
Accrued Salaries and Benefits - 97 -
Claims and Judgments, Current Portion 600,000 2,000,000 -
Total Current Liabilities 688,164 2,017,297 -
Long-Term Liabilities:
Claims and Judgments, Less Current Portion 823,000 5,373,000 -
Total Liabilities 1,511,164 7,390,297 -
NET POSITION
Net Investment in Capital Assets 3,379 297 -
Unrestricted 963,172 1,398,049 212,430
Total Net Position $ 966,551 $ 1,398,346 $ 212,430
(127)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF NET POSITION (CONTINUED)
INTERNAL SERVICE FUNDS
JUNE 30, 2017
Medical Miscellaneous Utilities
Liability Insurance Clearing Total
ASSETS
Current Assets:
Cash and Investments $ 13,471 $ 26,028 $ 522,658 $ 11,849,251
Cash and Investments with Fiscal Agent - - - 157,355
Interest Receivable 36 70 1,269 32,038
Total Current Assets 13,507 26,098 523,927 12,038,644
Noncurrent Assets:
Capital Assets:
Depreciable:
Equipment - - - 45,461
Accumulated Depreciation - - - (41,785)
Total Capital Assets, Net - - - 45,461
Total Noncurrent Assets - - - 3,676
Total Assets 13,507 26,098 523,927 12,042,320
LIABILITIES
Current Liabilities:
Due to Other Funds - - - 1,357
Accounts Payable - - 30,834 134,841
Accrued Salaries and Benefits - - - 97
Claims and Judgments, Current Portion - - - 2,600,000
Total Current Liabilities - - 30,834 2,736,295
Long-Term Liabilities:
Claims and Judgments, Less Current Portion - - - 6,196,000
Total Liabilities - - 30,834 8,932,295
NET POSITION
Net Investment in Capital Assets - - - 3,676
Unrestricted 13,507 26,098 493,093 3,106,349
Total Net Position $ 13,507 $ 26,098 $ 493,093 $ 3,110,025
(128)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2017
Self Workers' Unemployment
Insurance Compensation Insurance
OPERATING REVENUES
Charges for Services $ 1,602,732 $ 4,280,854 $ 203,489
Total Operating Revenues 1,602,732 4,280,854 203,489
OPERATING EXPENSES
Salaries and Employee Benefits - - 271,420
Services and Supplies 962,094 771,311 2,804
Premiums, Claims, and Judgments 1,282,609 4,797,493 -
Depreciation and Amortization 712 645 -
Total Operating Expenses 2,245,415 5,569,449 274,224
OPERATING INCOME(LOSS) (642,683) (1,288,595) (70,735)
NONOPERATING REVENUES (EXPENSES)
Sale of Asset - - -
Interest Income (2,808) 14,213 (206)
Total Nonoperating Revenues(Expenses) (2,808) 14,213 (206)
NET INCOME BEFORE TRANSFERS (645,491) (1,274,382) (70,941)
Transfers out (1,423) (6,417) -
CHANGE IN NET POSITION (646,914) (1,280,799) (70,941)
Net Position-Beginning of Year 1,613,465 2,679,145 283,371
NET POSITION -ENDING $ 966,551 $ 1,398,346 $ 212,430
(129)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN FUND NET POSITION (CONTINUED)
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2017
Medical Miscellaneous Utilities
Liability Insurance Clearing Totals
OPERATING REVENUES
Charges for Services $ 158,000 $ 139,301 $ 2,713,884 $ 9,098,260
Total Operating Revenues 158,000 139,301 2,713,884 9,098,260
OPERATING EXPENSES
Salaries and Employee Benefits - - - 271,420
Services and Supplies 157,729 143,664 2,262,674 4,300,276
Premiums, Claims, and Judgments - - - 6,080,102
Depreciation and Amortization - - - 1,357
Total Operating Expenses 157,729 143,664 2,262,674 10,653,155
OPERATING INCOME(LOSS) 271 (4,363) 451,210 (1,554,895)
NONOPERATING REVENUES (EXPENSES)
Sale of Asset - - - -
Interest Income 61 (1) 273 11,532
Total Nonoperating Revenues(Expenses) 61 (1) 273 11,532
NET INCOME BEFORE TRANSFERS 332 (4,364) 451,483 (1,543,363)
Transfers out - - (273,949) (281,789)
CHANGE IN NET POSITION 332 (4,364) 177,534 (1,825,152)
Net Position-Beginning of Year 13,175 30,462 315,559 4,935,177
NET POSITION -ENDING $ 13,507 $ 26,098 $ 493,093 $ 3,110,025
(130)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2017
Self Workers' Unemployment
Insurance Compensation Insurance
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers $ 1,602,732 $ 4,280,854 $ 203,489
Cash Paid to Suppliers for Goods and Services (2,020,251) (4,726,414) (3,222)
Cash Paid to Employees for Services - - (271,420)
Net Cash Provided (Used)
by Operating Activities (417,519) (445,560) (71,153)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers Out (1,423) (11,119) --
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received (Paid) (3,455) 11,692 (42)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (422,397) (444,987) (71,195)
Cash and Cash Equivalents-Beginning 2,890,139 9,209,788 283,101
CASH AND CASH EQUIVALENTS-ENDING $ 2,467,742 $ 8,764,801 $ 211,906
RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET
POSITION
Cash and Investments $ 2,467,742 $ 8,607,446 $ 211,906
Cash with Fiscal Agent - 157,355 -
Total Cash and Investments $ 2,467,742 $ 8,764,801 $ 211,906
RECONCILIATION OF OPERATING INCOME
(LOSS)TO NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES
Operating Income(Loss) $ (642,683) $ (1,288,595) $ (70,735)
Adjustments to Reconcile Operating Income
(Loss)to Net Cash Provided (Used) by
Operating Activities:
Depreciation 712 645 -
Increase(Decrease) in Liabilities:
Accounts Payable 87,452 16,390 (418)
Claims and Judgments 137,000 826,000 -
Net Cash Provided (Used)
by Operating Activities $ (417,519) $ (445,560) $ (71,153)
(131)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF CASH FLOWS (CONTINUED)
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2017
Medical Miscellaneous Utilities
Liability Insurance Clearing Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers $ 158,000 $ 139,301 $ 2,713,884 $ 9,098,260
Cash Paid to Suppliers for Goods and Services (157,729) (143,664) (2,260,256) (9,311,536)
Cash Paid to Employees for Services - - - (271,420)
Net Cash Provided (Used)
by Operating Activities 271 (4,363) 453,628 (484,696)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers Out - - (273,949) (286,491)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received (Paid) 48 (7) 354 8,590
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 319 (4,370) 180,033 (762,597)
Cash and Cash Equivalents-Beginning 13,152 30,398 342,625 12,769,203
CASH AND CASH EQUIVALENTS-ENDING $ 13,471 $ 26,028 $ 522,658 $ 12,006,606
RECONCILIATION OF CASH AND CASH
EQUIVALENTS TO STATEMENT OF NET
POSITION
Cash and Investments $ 13,471 $ 26,028 $ 522,658 $ 11,849,251
Cash with Fiscal Agent - - - 157,355
Total Cash and Investments $ 13,471 $ 26,028 $ 522,658 $ 12,006,606
RECONCILIATION OF OPERATING INCOME
(LOSS)TO NET CASH PROVIDED(USED)
BY OPERATING ACTIVITIES
Operating Income (Loss) $ 271 $ (4,363) $ 451,210 $ (1,554,895)
Adjustments to Reconcile Operating Income
(Loss)to Net Cash Provided (Used) by
Operating Activities:
Depreciation - - - 1,357
Increase(Decrease) in Liabilities:
Accounts Payable - - 2,418 105,842
Claims and Judgments - - - 963,000
Net Cash Provided (Used)
by Operating Activities $ 271 $ (4,363) $ 453,628 $ (484,696)
(132)
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FIDUCIARY FUND TYPES
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ALIFO, RNIA
COUNTY OF BUTTE, CALIFORNIA
FIDUCIARY FUNDS
Fiduciary Funds account for assets held by the County in a trustee capacity, or as an agent for private
organizations, other governmental units, or other funds.
AGENCYFUNDS
The Other Agency Fund accounts for assets held for other governmental agencies and governmental
units by the County in a fiduciary capacity.
The Tax Resources Fund accounts for funds reserved for losses and property tax receipts apportioned
to other local governmental agencies participating in the Teeter Plan.
(133)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCYFUNDS
JUNE 30, 2017
Tax
Other Resources Total
ASSETS
Cash and Investments $ 12,882,440 $ 6,583,841 $ 19,466,281
Due from Other Governments - - -
Interest Receivable 13,894 109,268 123,162
Due from Other Funds 376,306 - 376,306
Property Tax Receivable - 10,479,303 10,479,303
Total Assets $ 13,272,640 $ 17,172,412 $ 30,445,052
LIABILITIES
Due to Other Funds $ 110,907 $ - $ 110,907
Agency Funds Held for Others 13,161,733 17,172,412 30,334,145
Total Liabilities $ 13,272,640 $ 17,172,412 $ 30,445,052
(134)
COUNTY OF BUTTE, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
AGENCYFUNDS
YEAR ENDED JUNE 30, 2017
Balance Balance
July 1, 2016 Additions Deductions June 30, 2017
OTHER
ASSETS
Cash and Investments $ 16,428,526 $ - $ 3,546,086 $ 12,882,440
Due from Other Governments 23,167 - 23,167 -
Interest Receivable 12,685 1,209 - 13,894
Due from Other Funds - 376,306 - 376,306
Total Assets $ 16,464,378 $ 377,515 $ 3,569,253 $ 13,272,640
LIABILITIES
Due to Other Funds $ - $ 110,907 $ - $ 110,907
Agency Funds Held for Others 16,464,378 - 3,302,645 13,161,733
Total Liabilities $ 16,464,378 $ 110,907 $ 3,302,645 $ 13,272,640
TAX RESOURCES
ASSETS
Cash and Investments $ 6,450,397 $ 133,444 $ - $ 6,583,841
Interest Receivable 83,040 26,228 - 109,268
Property Tax Receivable 10,728,094 - 248,791 10,479,303
Total Assets $ 17,261,531 $ 159,672 $ 248,791 $ 17,172,412
LIABILITIES
Agency Funds Held for Others $ 17,261,531 $ 159,672 $ 248,791 $ 17,172,412
TOTAL AGENCY FUNDS
ASSETS
Cash and Investments $ 22,878,923 $ 133,444 $ 3,546,086 $ 19,466,281
Due from Other Governments 23,167 - 23,167 -
Interest Receivable 95,725 27,437 - 123,162
Due from Other Funds - 376,306 - 376,306
Property Tax Receivable 10,728,094 - 248,791 10,479,303
Total Assets $ 33,725,909 $ 537,187 $ 3,818,044 $ 30,445,052
LIABILITIES
Due to Other Funds $ - $ 110,907 $ - $ 110,907
Agency Funds Held for Others 33,725,909 159,672 3,551,436 30,334,145
Total Liabilities $ 33,725,909 $ 270,579 $ 3,551,436 $ 30,445,052
(135)
/
ALIFO, RNIA
Ad
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ALIFO, RNIA
STATISTICAL SECTION
STATISTICAL SECTION
The information in this section is not covered by the Independent Auditor's Report, but is presented as
supplemental data for the benefit of the reader of the Comprehensive Annual Financial Report. The
objectives of statistical section information are to provide financial statement users with additional
historical perspective, context, and detail to assist in using the information in the financial statements,
notes to financial statements, and required supplementary information to understand and assess a
government's economic condition.
CONTENTS
FINANCIAL TRENDS
These schedules contain trend information to help the reader understand how the County's financial
performance and well-being have changed over time.
REVENUE CAPACITY
These schedules contain trend information to help the reader assess the County's most significant local
revenue source, which is property tax.
DEBT CAPACITY
These schedules present information to help the reader assess the affordability of the County's current
levels of outstanding debt and the County's ability to issue additional debt in the future.
ECONOMIC AND DEMOGRAPHIC INFORMATION
These schedules offer economic and demographic indicators to help the reader understand the
environment within which the County's financial activities take place.
OPERATING INFORMATION
These schedules contain service and infrastructure data to help the reader understand how the
information in the County's financial reports relates to the services the County provides and the
activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
report for the relevant year.
(136)
COUNTY OF BUTTE, CALIFORNIA
NET POSITION BY COMPONENT
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$280,126,245 $269,571,545 $ 263,205,332 $ 243,321,441 $ 209,052,322 $ 209,080,492 $ 191,735,949 $168,982,913 $151,756,436 $132,252,207
45,999,726 51,089,379 49,225,674 78,363,897 84,780,705 79,227,923 16,595,483 95,931,964 136,834,213 122,022,690
19,565,376 29,823,697 35,430,215 7,959,935 (9,893,841) 588,586 389,388,834 (210,556,320) (241,054,922) (226,248,613)
$345,691,347 $350,484,621 $ 347,861,221 $ 329,645,273 $ 283,939,186 $ 288,897,001 $ 597,720,266 $ 54,358,557 $ 47,535,727 $ 28,026,284
$ 4,389,846 $ 5,046,136 $ 7,162,066 $ 8,912,181 $ 19,287,944 $ 10,161,697 $ (9,160,848) $ 11,295,555 $ 16,065,466 $ 19,313,442
4,300,259 4,421,316 5,547,422 4,753,072 3,685,767 - - - - -
10,256,700 10,664,266 9,326,821 8,799,943 2,489,032 15,111,391 34,433,936 14,404,403 10,768,515 9,058,961
$ 18,946,805 $ 20,131,718 $ 22,036,309 $ 22,465,196 $ 25,462,743 $ 25,273,088 $ 25,273,088 $ 25,699,958 $ 26,833,981 $ 28,372,403
$284,516,091 $274,617,681 $ 270,367,398 $ 252,233,622 $ 228,340,266 $ 219,242,189 $ 182,575,101 $180,278,468 $167,821,902 $151,565,649
50,299,985 55,510,695 54,773,096 83,116,969 88,466,472 79,227,923 16,595,483 95,931,964 136,834,213 122,022,690
29,822,076 40,487,963 44,757,037 16,759,878 (7,404,809) 15,699,977 423,822,770 (196,151,917) (230,286,407) (217,189,652)
$364,638,152 $370,616,339 $ 369,897,531 $ 352,110,469 $ 309,401,929 $ 314,170,089 $ 622,993,354 $ 80,058,515 $ 74,369,708 $ 56,398,687
of Butte
(137)
COUNTY OF BUTTE, CALIFORNIA
CHANGES IN NET POSITION BY COMPONENT
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$ 19,086,835 $ 20,865,771 $ 20,710,290 $ 25,025,047 $ 29,168,334 $ 30,060,660 $ 28,890,588 $ 33,284,793 $ 19,494,479 $ 34,998,187
87,500,747 96,664,267 94,362,185 88,781,607 91,167,264 93,246,404 88,471,224 104,222,488 109,431,367 120,176,236
34,623,721 39,999,631 34,975,071 30,108,420 36,686,173 37,081,727 41,001,623 34,940,310 33,073,748 41,036,447
64,268,283 72,458,490 67,582,300 72,502,065 72,015,960 75,317,142 70,530,585 63,592,673 68,462,617 79,780,776
135,871,668 142,125,227 142,615,875 143,688,838 148,220,091 141,998,777 136,125,651 121,695,661 129,102,977 128,712,112
3,117,432 3,394,070 3,291,233 2,805,328 2,959,473 3,208,699 2,486,523 3,382,972 3,256,166 3,827,098
604,386 374,615 524,852 512,353 530,319 583,937 166,481 274,130 270,721 328,803
4,315,186 3,696,005 2,659,630 2,499,474 2,701,482 2,488,759 1,999,865 1,921,981 2,090,317 2,370,509
349,388,258 379,578,076 366,721,436 365,923,132 383,449,096 383,986,105 369,672,540 363,315,008 365,182,392 411,230,168
19,903,572 20,463,697 16,567,360 21,694,710 22,092,523 19,859,373 10,020,782 8,482,864 17,099,501 21,707,525
5,285,862 6,000,509 9,180,534 10,708,534 10,398,936 9,364,760 7,597,320 9,345,835 8,176,255 9,160,994
3,439,296 3,547,975 4,082,071 2,225,165 2,216,854 2,286,810 1,057,902 347,898 857,994 3,915,390
5,011,027 5,176,893 5,673,115 5,756,094 5,785,533 5,607,738 3,945,720 2,877,011 4,293,783 7,378,175
354,261 543,906 711,842 676,610 1,079,724 1,012,741 316,723 373,010 1,138,165 407,561
101,360 89,362 113,684 146,212 146,391 146,391 - 120,413 171,464 112,870
115,716 120,209 - - - - - 317,359 68,258 65,327
206,381,946 214,119,802 222,937,925 222,575,034 227,348,490 238,623,299 231,245,236 227,391,828 212,696,494 270,058,047
13,136,901 12,981,464 16,299,993 20,924,224 10,465,668 13,263,837 17,867,527 15,754,932 12,186,193 5,734,412
253,729,941 263,043,817 275,566,524 284,706,583 279,534,119 290,164,949 272,051,210 265,011,150 256,688,107 318,540,301
(95,658,317) (116,534,259) (91,154,912) (81,216,549) (103,914,977) (93,821,156) (97,621,330) (98,303,858) (108,494,285) (92,689,867)
45,641,947 47,928,940 49,534,039 49,822,100 47,576,400 46,504,613 47,223,804 62,251,988 58,629,417 59,712,848
4,551,967 4,006,588 3,525,252 3,502,003 3,825,307 3,809,695 3,911,514 4,715,299 4,338,344 5,035,435
1,356,479 989,470 1,031,960 1,010,109 942,242 1,022,342 1,311,434 986,621 1,302,226 474,438
21,030,134 21,299,136 17,253,122 15,503,952 16,753,325 17,747,085 17,353,808 15,399,497 34,030,358 -
5,558,955 5,367,056 4,832,431 3,218,361 3,053,171 1,751,760 3,167,371 3,801,898 3,042,352 4,375,159
11,430,359 12,932,121 11,688,662 4,521,606 4,886,259 3,934,721 5,044,991 6,927,395 328,758 3,560,331
(8,770) 14,788 (24,770) 22,208
89,561,071 92,523,311 87,865,466 77,578,131 77,036,704 74,785,004 77,988,152 94,082,698 101,671,455 73,180,419
$ (6,097,246) $ (24,010,948) $ (3,289,446) $ (3,638,418) $ (26,878,273) $ (19,036,152) $ (19,633,178) $ (4,221,160) $ (6,822,830) $ (19,509,448)
(138)
COUNTY OF BUTTE, CALIFORNIA
CHANGES IN NET POSITION BY COMPONENT (CONTINUED)
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$ 4,680,195 $ 4,403,172 $ 5,486,248 $ 5,804,049 $ 4,855,077 $ 5,281,891 $ 5,867,934 $ 6,151,270 $ 7,534,619 $ 7,583,173
23,907 388,537
4,704,102 4,791,709 5,486,248 5,804,049 4,855,077 5,281,891 5,867,934 6,151,270 7,534,619 7,583,173
6,499,022 6,662,729 5,981,595 6,094,380 6,150,774 6,626,025 6,729,881 7,548,245 8,405,871 8,755,702
71,499 - - - - - - - - -
465,263 70,717 108,566 83,808 159,913 206,974
7,035,784 6,733,446 6,090,161 6,178,188 6,310,686 6,626,025 6,729,881 7,548,245 8,405,871 8,962,676
2,331,682 1,941,737 603,913 374,139 1,455,610 1,344,134 861,947 1,396,975 871,252 1,379,503
89,643 701,950 1,004,069 810,774 463,350 196,221 182,000 199,250 233,271 41,693
(2,528,082) - - - - - - - - -
186,366 - - - - - 107,674 - 29,500 139,433
8,770 (14,788) 24,770 (22,208)
(2,252,073) 710,720 1,004,069 810,774 463,350 181,433 314,444 199,250 262,771 158,918
$ 79,609 $ 2,652,457 $ 1,607,982 $ 1,184,913 $ 1,918,960 $ 1,525,567 $ 1,176,391 $ 1,596,225 $ 1,134,023 $ 1,538,421
$ 349,388,258 $ 379,578,076 $ 366,721,436 $ 365,923,132 $ 365,923,133 $ 383,986,105 $ 369,672,540 $ 363,315,008 $ 365,182,392 $ 411,230,168
4,704,102 4,791,709 5,486,248 5,804,049 4,855,077 5,281,891 5,867,934 6,151,270 7,534,619 7,583,173
354,092,360 384,369,785 372,207,684 371,727,181 370,778,210 389,267,996 375,540,474 369,466,278 372,717,011 418,813,341
253,729,941 263,043,817 275,566,524 284,706,583 284,706,583 290,164,949 272,051,210 265,011,150 256,688,107 318,540,301
7,035,784 6,733,446 6,090,161 6,178,188 6,310,686 6,626,025 6,729,881 7,548,245 8,405,871 8,962,676
260,765,725 269,777,263 281,656,685 290,884,771 291,017,269 296,790,974 278,781,091 272,559,395 265,093,978 327,502,977
(95,658,317) (116,534,259) (91,154,912) (81,216,549) (81,216,550) (93,821,156) (97,621,330) (98,303,858) (108,494,285) (92,689,867)
2,331,682 1,941,737 603,913 374,139 1,455,610 1,344,134 861,947 1,396,975 871,252 1,379,503
(93,326,635) (114,592,522) (90,550,999) (80,842,410) (79,760,940) (92,477,022) (96,759,383) (96,906,883) (107,623,033) (91,310,364)
89,561,071 92,523,311 87,865,466 77,578,131 77,578,131 74,785,004 77,988,152 94,082,698 101,671,455 73,180,419
(2,252,073) 710,720 1,004,069 810,774 463,350 181,433 314,444 199,250 262,771 158,918
87,308,998 93,234,031 88,869,535 78,388,905 78,041,481 74,966,437 78,302,596 94,281,948 101,934,226 73,339,337
(6,097,246) (24,010,948) (3,289,446) (3,638,418) (3,638,419) (19,036,152) (19,633,178) (4,221,160) (6,822,830) (19,509,448)
79,609 2,652,457 1,607,982 1,184,913 1,918,960 1,525,567 1,176,391 1,596,225 1,134,023 1,538,421
$ (6,017,637) $ (21,358,491) $ (1,681,464) $ (2,453,505) $ (1,719,459) $ (17,510,585) $ (18,456,787) $ (2,624,935) $ (5,688,807) $ (17,971,027)
(139)
COUNTY OF BUTTE, CALIFORNIA
FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year Ended June 30,
2008 2009 2010
General Fund
Reserved for:
Encumbrances $ 4,164,873 $ 2,437,136 $ 2,348,768
Imprest Cash 44,095 44,245 84,345
Prepaid Items - 1,888 1,848
Deposits with Others 2,500 2,500 2,500
General Restrictions 10,611,120 11,560,087 13,844,851
Debt Service 801,259 1,127,040 1,572,685
Inventory - - 154,369
Unreserved:
Designated 91,826 232,510 115,000
Undesignated 10,160,457 9,059,057 16,710,645
Total General Fund Balance $25,876,130 $24,464,463 $34,835,011
All other Governmental Funds
Reserved for:
Encumbrances $ 17,850,098 $ 11,526,534 $ 10,662,956
Imprest Cash 1,750 1,700 2,700
Prepaid Items - 4,088 8,945
Deposits with Others 297 297 297
Long-Term Loans Receivable - - -
Legislative/Grant Restrictions 21,963,318 22,424,759 25,932,333
Debt Service 5,522,525 7,943,619 7,875,805
Inventories 293,954 273,707 284,270
Unreserved:
Designated,Reported in:
Special Revenue Funds - 4,558,541 4,460,824
Undesignated,Reported in:
Special Revenue Funds 1,249,734 12,604,968 15,206,987
Capital Projects Funds 848,587 295,664 551,122
Total Other Governmental
Fund Balances $47,730,263 $59,633,877 $64,986,239
Fiscal Year Ended June 30,
2011 2012 2013 2014 2015 2016 2017
General Fund
Nonspendable $ 122,064 $ 290,483 $ 150,080 $ 157,012 $ 607,460 $ 238,618 $ 798,397
Restricted 13,842,210 18,714,771 15,812,903 19,171,026 26,840,249 27,132,083 27,284,624
Committed 2,628,878 808,712 5,709,505 5,831,455 - 7,500,000 8,000,000
Assigned 6,559,485 5,059,485 714,346 30,278 28,259 28,867 -
Unassigned 11,197,976 12,396,380 17,267,531 14,708,683 23,993,723 23,371,872 14,857,165
Total $34,350,613 $37,269,831 $39,654,365 $39,898,454 $51,469,691 $58,271,440 $50,940,186
All other Governmental Funds
Nonspendable $ 323,212 $ 364,031 $ 340,758 $ 322,391 $ 314,201 $ 287,987 $ 269,054
Restricted 64,521,687 64,470,569 63,415,020 67,838,156 75,587,815 78,274,786 88,772,693
Committed - - - - - - -
Assigned - (2,203,060)
Unassigned - (1,726,040) - - - - -
Total $64,844,899 $63,108,560 $61,552,718 $68,160,547 $ 75,902,016 $ 78,562,773 $89,041,747
Note:In 2011,the County implemented GASB Statement No.54 under which governmental fund balances were reported as
nonspendable,restricted,committed,assigned and unassigned compared to reserved and unreserved.
Source: Auditor-Controller,County of Butte
(140)
COUNTY OF BUTTE, CALIFORNIA
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$ 52,384,206 $ 53,797,238 $ 54,091,251 $ 54,334,212 $ 51,336,650 $ 52,446,752 $ 54,343,606 $ 67,953,905 $ 64,269,987 $ 65,222,721
4,861,476 4,604,498 3,720,735 3,123,312 3,120,393 3,316,514 3,808,020 3,896,371 3,603,798 3,614,103
2,728,930 3,139,816 3,307,221 3,835,387 3,233,042 3,138,357 2,173,480 3,147,613 8,144,022 6,655,205
5,285,289 4,982,969 4,063,901 2,766,269 1,570,990 3,167,371 3,719,926 3,801,896 6,866,665 4,363,627
240,529,554 248,376,861 256,476,762 258,983,988 269,779,236 266,362,753 245,850,909 255,545,197 256,811,754 272,627,250
26,645,205 27,757,939 29,300,650 34,248,627 30,672,237 16,483,576 16,810,792 14,787,538 29,675,113 32,348,671
11,430,359 12,932,121 11,688,660 4,521,606 3,934,721 5,041,631 4,459,273 6,891,119 3,539,473 3,462,831
343,865,019 355,591,442 362,649,180 361,813,401 363,647,269 349,956,954 331,166,006 356,023,639 372,910,812 388,294,408
20,440,643 21,640,700 21,456,259 23,348,016 29,192,387 29,382,721 34,986,797 31,817,707 28,942,422 39,249,054
89,379,218 97,512,700 93,854,161 84,903,509 92,590,332 89,451,403 87,074,775 97,118,079 112,321,201 118,494,391
17,037,110 18,547,425 22,211,130 18,282,672 18,433,994 22,205,964 21,242,482 19,082,142 16,887,900 21,029,768
65,632,200 72,966,299 67,928,959 71,610,453 74,748,465 70,982,915 65,096,539 64,445,786 72,134,878 78,741,652
137,501,206 142,597,681 143,751,638 142,735,533 140,936,590 135,233,719 112,558,764 121,408,562 128,880,213 127,459,323
3,056,164 3,397,317 3,227,903 2,714,077 3,149,286 2,407,061 2,508,004 3,255,644 3,654,022 4,056,341
475,794 574,995 538,899 344,806 363,065 76,733 252,717 463,469 116,409 157,652
2,854,718 6,774,954 746,483 767,210 765,957 738,305 1,105,042 2,028,202 2,278,656 1,205,465
4,226,524 3,599,724 2,597,561 2,398,702 2,387,171 2,001,044 1,969,457 1,923,814 2,090,317 2,223,417
340,603,577 367,611,795 356,312,993 347,104,978 362,567,247 352,479,865 326,794,577 341,543,405 367,306,018 392,617,063
JE
3,261,442 (12,020,353) 6,336,187 14,708,423 1,080,022 (2,522,911) 4,371,429 14,480,234 5,604,794 (4,322,655)
=S)
24,014 463,507 72,392 68,894 169,364 96,457 238,595 36,275 163,128 -
- - - - - - - - 34,059 7,166,380
19,802,941 24,328,799 20,862,960 21,674,746 7,814,774 23,917,358 31,781,697 26,978,872 15,818,443 14,278,691
(19,292,699) (23,638,040) (20,574,185) (20,525,060) (7,492,219) (23,131,187) (31,079,686) (26,978,872) (15,361,724) (13,974,694)
23,535 123,162 - - 272,915 - 1,539,884 4,796,195 3,203,805
557,791 1,277,428 361,167 1,218,580 764,834 882,628 2,480,490 4,832,470 3,857,711 7,470,377
ibility - - - - - - - - - -
$ 3,819,233 $ (10,742,925) $ 6,697,354 $ 15,927,003 $ 1,844,856 $ (1,640,283) $ 6,851,919 $ 19,312,704 $ 9,462,505 $ 3,147,722
capital
3.1% 2.1% 2.9% 1.0% 0.9% 0.8% 0.9% 1.2% 1.2% 0.9%
Butte
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COUNTY OF BUTTE, CALIFORNIA
PROPERTY TAXES, LEVIES, AND COLLECTIONS
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Collected within the
Fiscal Year of the Levy Total Collections to Date(2)
Collections of
Total Tax Levy For Percentage Delinquent Tax from Amount Percentage of
Fiscal Year Fiscal Year Amount Colletcted of Levy Prior Year(1) Collected Levy
2008 $ 188,829,719 $ 181,185,658 95.95% $ 4,143,155 $ 185,328,813 98.15%
2009 198,409,898 189,418,909 95.47% 4,496,295 193,915,204 97.73%
2010 199,175,438 190,591,457 95.69% 4,447,409 195,038,866 97.92%
2011 193,037,125 186,558,046 96.64% 2,945,199 189,503,245 98.17%
2012 190,697,309 185,141,785 97.09% 2,537,452 187,679,237 98.42%
2013 188,546,914 183,835,994 97.50% 2,528,186 186,364,180 98.84%
2014 196,435,975 192,402,835 97.95% - 192,402,835 97.95%
2015 203,133,678 198,864,507 97.90% - 198,864,507 97.90%
2016 212,108,378 207,989,382 98.06% - 207,989,382 98.06%
2017 219,852,299 215,651,973 98.09% - 215,651,973 98.09%
Note 1: No longer include the current year collections of delinquent taxes since 2014. Taxes by levy year
will be reported when information is available.
Note 2: Includes current collections.
Source:Auditor-Controller, County of Butte
(142)
COUNTY OF BUTTE, CALIFORNIA
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN YEARS
fired Utility Unsecured Unitary/RR Assessed
III Roll Roll Roll Value
'327,918 $ 8,367,262 $ 772,788,613 $ 627,348,634 $ 18,337,832,427
407,338 779307798 836,897,313 616,678,400 19,287,913,849
534,370 7,930,548 867,980,662 693,318,350 19,285,763,930
1801,601 5,152,377 868,120,034 731,199,247 18,966,273,259
,198,786 478827202 915,590,669 808,441,660 18,744,113,317
245,966 4,857,082 906,224,159 846,160,978 18,527,488,185
988,143 4,821,511 933,895,987 827,992,521 18,790,698,162
71377111 672707694 987,011,434 830,560,304 19,433,979,543
757,968 6,270,694 1,002,100,240 869,583,584 20,378,712,486
290,670 672757182 1,054,636,741 852,207,957 21,178,410,550
County of Butte
(143)
COUNTY OF BUTTE, CALIFORNIA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN YEARS
Basic Paradise
Fiscal Countywide Butte Lake Irrigation
Year Levy Schools College Madrone District Total
2008 1.00% 0.1939% 0.0209% 1.020% 0.024% 2.2588%
2009 1.00% 0.1899% 0.0209% 1.020% 0.022% 2.2528%
2010 1.00% 0.1822% 0.0209% 1.020% 0.026% 2.2491%
2011 1.00% 0.1620% 0.0209% 1.150% 0.024% 2.3569%
2012 1.00% 0.3479% 0.0209% 1.250% 0.028% 2.6468%
2013 1.00% 0.1603% 0.0209% 1.400% 0.026% 2.6072%
2014 1.00% 0.1955% 0.0209% 2.000% 0.021% 3.2373%
2015 1.00% 0.1866% 0.0209% 2.000% 0.025% 3.2325%
2016 1.00% 0.1628% 0.0209% 2.000% 0.021% 3.2047%
2017 1.00% 0.1803% 0.0209% 2.000% 0.025% 3.2262%
Note: California voters, on June 6, 1978, approved a constitutional amendment to Article XIIIA of the
California Constitution, commonly known as Proposition 13, which limits the taxing power of the
California public agencies. Legislation enacted by the California Legislature to implement Article
XII IA(Statutes of 1978 Chapter 292, as amended) provides that not withstanding any other law,
local agencies may not levy property tax except to pay debt service on indebtedness approved by
voters prior to July 1, 1978, and that each County will levy the maximum tax permitted by Article
XII IA of$1 per$100 of full cash value. Assessed value is equal to full cash value, pursuant to
Senate Bill 1656, Statutes of 1978. The rates shown above are percentages of assessed valuation.
Source: Auditor-Controller, County of Butte
(144)
COUNTY OF BUTTE, CALIFORNIA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND TEN YEARS AGO
2017 2008
Percentage of Percentage of
Total Total
Taxpayer Rank Assessed Valuation Assessed Rank Assessed Valuation Assessed
Pacific Gas and Electric Company 1 $ 583,601,139 3.028% 1 $ 375,132,582 2.215%
Wild Goose Storage LLC 2 130,120,306 0.675% 2 112,607,341 0.665%
Farmland Reserve,Inc. 3 71,763,341 0.372% 4 39,932,845 0.236%
Pacific Bell California 4 50,622,499 0.263% 3 53,086,263 0.313%
Pacific Realty Associates L P 5 48,818,529 0.253% 14,397,552 0.085%
Chico Mall Investors LP 6 41,504,413 0.215% 5 38,122,503 0.225%
Merle A Webb&Sons 7 43,707,492 0.227% 7 -
Union Pacific Railroad Company 8 36,097,088 0.187% -
Chico Crossroads LP 9 38,469,624 0.200% 7 30,000,000 0.177%
Butte County Rice Growers Assn 10 37,395,370 0.194% -
Carwood Skypark LLC ETAL 6 31,500,000 0.186%
Sprint Communications Co 8 26,485,508 0.156%
North Valley Mall LLC 9 24,388,318 0.144%
Pacific Coast Producers 10 24,029,975 0.142%
Largest Secured Property Valuation 1,082,099,801 5.615% 769,682,887.00 4.544%
Total Secured Property Valuation $ 19,271,565,852 $ 16,937,695,180
Source:Auditor-Controller,County of Butte
(145)
COUNTY OF BUTTE, CALIFORNIA
LEGAL DEBT MARGIN INFORMATION
LAST TEN YEARS
Total
Total Legal Net Debt Legal Legal
Fiscal Assessed Debt Applicable to Debt Debt Margin/
Year Valuation (1) Limit(2) Limit(3) Margin (4) Debt Limit
2008 $ 18,337,832,427 $ 229,222,905 $ - $ 229,222,905 100%
2009 19,287,913,849 241,098,923 - 241,098,923 100%
2010 19,285,763,930 241,072,049 - 241,072,049 100%
2011 18,966,273,259 237,078,416 - 237,078,416 100%
2012 18,744,113,317 234,301,416 - 234,301,416 100%
2013 18,527,488,185 231,593,602 - 231,593,602 100%
2014 18,790,698,162 234,883,727 - 234,883,727 100%
2015 19,433,979,543 242,924,744 - 242,924,744 100%
2016 20,378,712,486 254,733,906 - 254,733,906 100%
2017 21,178,410,550 264,730,132 - 264,730,132 100%
Notes:
(1) Total assessed valuation includes exempt property.
(2) The legal debt limit is set by statute at 1.25%of the total assessed valuation.
(3) The County does not have any General Bonded Debt.
(4) The legal debt margin is the legal debt limit reduced by all general bonded debt.
•
Source: Chief Administrative Office, County of Butte
(146)
COUNTY OF BUTTE, CALIFORNIA
RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO TAXABLE
ASSESSED VALUE AND NET GENERAL OBLIGATION DEBT PER CAPITA
LAST TEN YEARS
Debt Ratio of Net
Gross Payable from Net Bonded Bonded
Fiscal County Assessed Bonded Enterprise Net Debt to Debt per
Year Population (1) Value Debt Revenue Debt Assessed Value Capita
2008 220,407 $ 18,337,832,427
2009 220,748 19,287,913,849
2010 221,331 19,285,763,930
2011 221,388 18,966,273,259
2012 221,273 18,744,113,317
2013 221,485 18,527,488,185
2014 222,316 18,790,698,162
2015 224,323 19,433,979,543
2016 224,601 20,378,712,486
2017 226,404 21,178,410,550
Source:
(1) State of California, Department of Finance
www.dof.ca. ov/research/demora hic/re orts/estimates/e-1/view. h
(2) No general obligation bonds issued.
(147)
COUNTY OF BUTTE, CALIFORNIA
RATIO OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN YEARS
(IN THOUSANDS, EXCEPT PER CAPITA)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0,575,340 $ 50,491,664 $ 50,402,721 $ 49,895,000 $ 49,895,000 $ 49,895,000 $ 49,545,000 $ 49,075,000 $ 48,480,000 $ 47,745,000
5,385,967 7,805,458 7,732,755 8,788,635 8,802,439 8,844,215 9,355,363 9,940,403 11,169,994 11,090,959
5,189,373 $ 42,686,206 $ 42,669,966 $ 41,106,365 $ 41,092,561 $ 41,050,785 $ 40,189,637 $ 39,134,597 $ 37,310,006 $ 36,654,041
0.25% 0.23% 0.24% 0.23% 0.24% 0.23% 0.22% 0.21% 0.19% 0.17%
205.0 $ 193.4 $ 192.8 $ 185.7 $ 185.7 $ 185.3 $ 180.8 $ 174.5 $ 166.1 $ 161.9
Wfte
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COUNTY OF BUTTE, CALIFORNIA
OVERLAPPING BONDED DEBT
JUNE 30, 2017
2016-17 Assessed Valuation: $21,178,410,550(includes unitary utility valuation and railroad)
Total Debt County's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/17 %Applicable(1) Debt 6/30/17
Butte-Glenn Community College District $104,118,079 87.613% $ 91,220,973
Yuba Joint Community College District 161,232,824 0.158 254,748
Chico Unified School District 98,070,000 100.0 98,070,000
Marysville Joint Unified School District 66,703,777 100.0 66,703,777
Gridley Unified School District School Facilities Improvement District No. 1 2,440,000 100.0 2,440,000
Oroville Union High School District 14,611,385 100.0 14,611,385
Manzanita School District 490,000 100.0 490,000
Oroville School District 2,351,231 100.0 2,351,231
Thermalito Union School District 1,497,601 100.0 1,497,601
Sutter Butte Flood Control Agency Assessment District 87,605,000 7.011 6,141,987
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $283,781,702
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Butte County Certificates of Participation $12,988,333 100.0 % $12,988,333
Butte County Pension Obligation Bonds 47,745,000 100.0 47,745,000
Yuba Joint Community College District General Fund Obligations 13,255,006 0.158 20,943
Chico Unified School District Certificates of Participation 35,000 100.0 35,000
Paradise Unified School District Certificates of Participation 560,000 100.0 560,000
City of Oroville Pension Obligation Bonds 4,515,000 100.0 4,515,000
City of Paradise Pension Obligation Bonds 6,097,858 100.0 6,097,858
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $71,962,134
Less: Butte County Certificates of Participation supported by landfill revenues 4,220,000
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $67,742,134
OVERLAPPING TAX INCREMENT DEBT(Successor Agencies): $113,015,000 100.0 % $113,015,000
TOTAL GROSS DIRECT DEBT $60,733,333
TOTAL NET DIRECT DEBT $56,513,333
TOTAL OVERLAPPING DEBT $408,025,503
GROSS COMBINED TOTAL DEBT $468,758,836(2)
NET COMBINED TOTAL DEBT $464,538,836
(1) The percentage of overlapping debt applicable to the county is estimated using taxable assessed property value.
Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is
within the boundaries of the county divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and nonbonded capital lease
obligations.
Ratios to 2016-17 Assessed Valuation:
Total Overlapping Tax and Assessment Debt........................1.34%
Total Gross Direct Debt ($60,733,333)...............................0.29%
Total Net Direct Debt ($56,513,333)....................................0.27%
Gross Combined Total Debt...................................................2.21%
Net Combined Total Debt.......................................................2.19%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($3,752,827,711):
Total Overlapping Tax Increment Debt...................................3.01%
AB:($500)
(149)
COUNTY OF BUTTE, CALIFORNIA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN YEARS
imental Activities Business-Type Activities
Total Percentage Percentage
S of Loans/ Capital Certificates of Capital Primary of Assessed of Personal Per
ion Notes Leases Loans Participation Leases Government Value Income Capita
650 $ 2,703 $ 1,134 $ 400 $ 12,025 $ $ 76,491 0.4649% 1.08% 351
300 2,494 1,029 350 12,025 68,709 0.3854% 1.02% 310
945 2,278 922 300 1,130 20 67,168 0.3743% 0.94% 303
439 2,053 848 250 10,550 20 67,167 0.3806% 0.90% 304
835 1,575 699 200 9,770 63,974 0.3677% 0.84% 289
835 1,575 699 150 8,960 559 63,673 0.3601% 0.87% 287
422 1,322 2,150 100 8,210 951 64,050 0.3495% 0.81% 288
791 1,059 1,284 50 7,235 744 65,238 0.3507% N/A 1 291
583 651 450 - 6,320 534 65,021 0.3333% N/A 1 289
471 400 7,512 4,220 1,137 69,485 0.3281% N/A 1 N/A 1
as of reporting date.
tte
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COUNTY OF BUTTE, CALIFORNIA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN YEARS
Per Capita
Fiscal Personal Personal School Unemployment
Year Population (1) Income (2) Income (2) Enrollment (3) Rate (1)
2008 220,407 $ 7,100,740,000 32,216 32,559 8.2%
2009 220,748 6,752,580,000 30,590 32,069 13.2%
2010 221,331 7,163,944,000 32,368 31,539 13.1%
2011 221,388 7,500,846,828 33,881 31,226 13.1%
2012 221,273 7,643,654,512 34,544 31,255 12.6%
2013 221,485 7,347,286,000 33,356 31,262 12.2%
2014 222,316 8,298,110,000 37,326 31,069 8.3%
2015 224,323 8,774,842,791 39,117 31,002 8.6%
2016 224,601 8,989,495,795 40,024 31,155 7.3%
2017 226,404 9,009,925,000 39,971 31,384 6.0%
Detail of estimated population, as January, 2017:
Incorporated Cities/Towns:
City of Biggs 1,905
City of Chico 93,383
City of Gridley 6,704
City of Oroville 18,037
Town of Paradise 25,841
Total of incorporated 145,870
Total of unincorporated 80,534
Total Population 226,404
Note: Personal income and per capita income are based on the calendar year information ending
during the fiscal year.
Source:
(1) State of California, Employment Development Department, Labor Market Information Division
(www.labormarketinfo.edd.ca.gov/cgi/dataanalysisn
(2) Bureau of Economic Analysis (www.bea.gov/bea/regional/reisn.
(3) California Dept. of Education (http://dq.cde.ca.gov/dataquest/Enrollment)
(151)
COUNTY OF BUTTE, CALIFORNIA
COUNTY INDUSTRY EMPLOYMENT DISTRIBUTION
JUNE 30, 2017
Industry Employment Distribution
Farm 3.5%
Mining Logging and Construction 4.8%
Manufacturing 4.7%
Trade, Transportation, and Utilities 16.6%
Information 1.2%
Financial Activities 4.3%
Professional and Business Services 6.9%
Education and Health Services 23.7%
Leisure and Hospitality 10.1%
Other Services 5.3%
Government 18.9%
Industry Employment Distribution
0.25
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0.15
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Source: State of California, Employment Development Department, Labor Market Information Division, Snap Shot
(152)
COUNTY OF BUTTE, CALIFORNIA
MISCELLANEOUS STATISTICAL INFORMATION
JUNE 30, 2017
Geographical Location: One of the State's original 27 counties, Butte County is located in the
northern portion of the Sacramento Valley. Rising from the Sacramento
River, its western boundary, to the Sierra Nevada Mountains, its eastern
perimeter, the county's 1,665 square miles range in elevation from sixty
feet to over 7,000 feet, resulting in a considerable variation in climate.
Area of County: 1,665 square miles
County Seat: Oroville, California
Date of Incorporation: February 18, 1850
Form of Government: General Law County, governed by a five-member Board of Supervisors
Fiscal Year Begins: July 1
County Employees: 2,405 as of June 30, 2017
Source: Auditor-Controller, County of Butte
(153)
COUNTY OF BUTTE, CALIFORNIA
PRINCIPAL EMPLOYERS
JUNE 30, 2017 AND TEN YEARS AGO
2017 2008
Percentage Percentage
of Total of Total
County County
Company Employees Rank Employment Employees Rank Employment
Enloe Medical Center, Inc. 3,266 1 3.45% 1,800 3 1.82%
Butte County 2,405 2 2.54% 2,345 1 2.38%
Chico Unified School District 2,162 3 2.29% N/A N/A N/A
California State University, Chico 1,989 4 2.10% 300 12 0.30%
Butte County Office of Education 1,767 5 1.87% 400 11 0.41%
Oroville Hospital 1,738 6 1.84% 920 4 0.93%
Butte Glenn Community College 1,417 7 1.50% 410 10 0.42%
Pacific Coast Producers 1,265 8 1.34% 185 20 0.19%
Feather River Hospital 1,235 9 1.31% 620 6 0.63%
Associated Students California 836 10 0.88% 600 7 0.61%
Total 18,080 18.66% 7,580 7.69%
Source: www.labormarketinfo.edd.ca.gov/maiorer/countymaiorer.asp
Individual companies
(154)
COUNTY OF BUTTE, CALIFORNIA
OPERATING INDICATORS BY FUNCTION
LAST TEN YEARS
Function/Program 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sheriff
Number of Bookings 12,693 14,241 13,487 12,792 13,285 12,597 13,009 11,613 12,037 11,373
Coroner Case Load 1,632 1,677 1,734 1,606 1,656 1,729 1,521 1,741 1,832 1,797
Calls for Services-Unincorp.Areas 64,121 63,871 63,787 60,499 58,843 63,664 62,065 63,239 66,236 72,449
Fire
Medical Assistance 8,101 8,021 11,941 12,054 12,511 12,255 11,148 12,527 11,644 12,339
Fires Extinguished 1,311 1,089 2,169 2,022 2,311 2,426 2,167 2,713 1,789 1,891
Probation
Juveniles in Detention(bed days) 19,242 17,949 17,564 17,789 17,593 17,086 12,466 11,877 9,801 10,016
Waste Management
Landfill Tonnage 192,073 163,370 152,257 152,822 154,531 153,691 135,919 151,865 166,783 183,842
Recycling Tonnage 23,377 19,390 13,768 12,420 12,094 11,643 13,183 11,775 11,704 9,992
County Libraries
Total Circulation 826,821 910,249 840,078 918,069 963,052 748,756 980,903 978,698 920,489 831,571
Reference Questions Answered 38,546 42,366 27,449 32,526 39,798 39,798 50,391 55,110 46,163 32,906
Patrons 93,616 94,574 79,326 74,057 80,135 87,954 103,439 105,479 113,524 121,164
Programs Offered 1,214 1,353 1,415 1,377 1,510 1,510 2,010 1,865 2,060 2,080
Program Attendance 30,916 34,764 28,395 32,943 36,751 6,036 27,554 36,146 33,452 31,218
Visitor Count 723,460 756,901 642,112 640,096 672,851 672,851 622,692 648,421 620,782 617,098
Clerk-Recorder
Official Records Recorded 61,002 51,388 52,738 52,863 53,996 62,605 51,662 52,826 54,854 56,788
Vital Records Copies Issued 13,629 13,689 12,430 12,393 11,771 10,785 11,410 10,913 8,492 11,418
Official Records Copies Issued 6,172 5,408 4,272 5,431 5,161 4,954 4,347 4,276 4,379 5,355
Public Social Services
CalWORKS Clients 105,953 103,947 102,663 103,267 101,884 100,669 97,567 94,415 88,239 83,793
Food Stamp Clients 228,513 251,732 290,417 311,695 339,557 356,989 365,153 377,296 386,989 377,332
Medi-Cal Clients 159,384 157,048 169,544 245,592 230,464 211,106 242,111 380,421 439,199 448,142
In-Home Support Services 35,951 37,593 36,322 33,376 33,660 33,749 31,952 33,747 36,001 37,872
Foster Care Placements 8,417 7,542 7,065 5,812 5,070 4,402 4,615 5,084 5,262 5,066
Child Welfare Services 12,282 11,237 10,150 9,800 8,936 7,441 6,581 7,802 7,732 8,082
Source: Auditor-Controller,County of Butte
(155)
COUNTY OF BUTTE, CALIFORNIA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017
4 4 4 4 4 4 4 4 4 4
60 50 50 61 82 81 92 97 97 104
26 26 26 26 26 26 26 26 26 26
40 40 40 40 40 40 40 40 40 40
1 1 1 1 1 1 1 1 1 1
756 11,931,691 11,793,202 11,652,343 11,509,906 11,367,858 11,233,172 11,081,307 10,963,435 9,269,503
6 6 6 6 6 6 6 6 6 6
1 1 1 1 1 1 1 1 1 2
155 321,799 302,828 243,280 256,893 246,731 222,150 214,510 204,358 193,648
N/A N/A N/A N/A N/A 3,406 581 716 55,426 94,861
of Butte
(156)
Ad
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ALIFO, RNIA
GLOSSARY
COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT
JUNE 30, 2017
ACCOUNTABILITY. The term used by the Government Accounting Standards Board (GASB) to
describe a government's duty to justify the raising and spending of public resources. The GASB has
identified accountability as the "paramount objective" of financial reporting "from which all other
objectives must flow."
ACCOUNTS PAYABLE. A short-term liability account reflecting amounts owed to private persons or
organizations for goods and services received by a government.
ACCOUNTS RECEIVABLE. An asset account reflecting amounts due from private persons or
organizations for goods and services furnished by a government (but not including amounts due from
other funds or other governments).
ACCRUAL BASIS OF ACCOUNTING. Method of accounting that recognizes the financial effect of
transactions, events, and interfund activity when they occur, regardless of the timing of related cash
flow.
ACCUMULATED DEPRECIATION. A contra-asset account used to report the accumulation of periodic
credits to reflect the expiration of the estimated service life of capital assets.
ADVANCE FROM OTHER FUNDS. A liability account used to record noncurrent portions of a long-
term debt owed by one fund to another fund within the same reporting entity. See DUE TO OTHER
FUNDS and INTERFUND RECEIVABLE/PAYABLE.
ADVANCE TO OTHER FUNDS. An asset account used to record noncurrent portions of a long-term
loan from one fund to another fund within the same reporting entity. See DUE FROM OTHER FUNDS.
AGENCY FUND. A fund normally used to account for assets held by a government in a custodial
capacity for individuals, private organizations or other governments and/or other funds.
AMORTIZATION. (1) The portion of the cost of a limited-life or intangible asset charged as an expense
during a particular period. (2) The reduction of debt by regular payments of principal and interest
sufficient to retire the debt by maturity.
APPROPRIATION. A legal authorization granted by a legislative body to make expenditures and to
incur obligations for specific purposes. An appropriation usually is limited in amount and time it may be
expended.
ASSESSED VALUATION. A valuation set upon real estate or other property by a government as a
basis for levying taxes.
ASSIGNED FUND BALANCE. Amounts that are constrained by the County's intent to be used for
specific purposes. The intent can be established at either the highest level of decision-making, or by a
body or an official designated for that purpose. This is also the classification for residual funds in the
County's special revenue funds.
(157)
COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
AUDITORS' REPORT. In the context of a financial audit, a statement by the auditor describing the
scope of the audit and the auditing standards applied in the examination, and setting forth the auditor's
opinion on the fairness of presentation of the financial information in conformity with GAAP or some
other comprehensive basis of accounting.
BALANCE SHEET. The financial statement disclosing the assets, liabilities, and equity of an entity at a
specified date in conformity with GAAP.
BASIC FINANCIAL STATEMENTS. The minimum combination of financial statements and note
disclosures required for fair presentation in conformity with GAAP. Basic financial statements have
three components: government-wide financial statements, fund financial statements, and notes to the
financial statements.
BASIS OF ACCOUNTING. A term used to refer to when revenues, expenditures, expenses, and
transfers - and the related assets and liabilities are recognized in the accounts and reported in the
financial statements. Specifically, it relates to the timing of the measurements made, regardless of the
nature of the measurement, on either the cash or the accrual method.
BUDGET. A plan of financial operation embodying an estimate of proposed expenditures for a given
period and the proposed means of financing them. Used without any modifier, the term usually
indicates a financial plan for a single fiscal year. The term "budget" is used in two senses in practice.
Sometimes it designates the financial plan presented to the appropriating governing body for adoption,
and sometimes, the plan finally approved by that body.
BUDGETARY CONTROL. The control or management of a government or enterprise in accordance
with an approved budget to keep expenditures within the limitations of available appropriations and
available revenues.
CAPITAL ASSETS. Land, improvements to land, easements, buildings, building improvements,
vehicles, machinery, equipment, and all other tangible or intangible assets that are used in operations
and that have initial useful lives extending beyond a single reporting period.
CAPITAL EXPENDITURES. Expenditures resulting in the acquisition of or addition to the government's
general capital assets.
CAPITALIZATION THRESHOLD. The criteria used by a government to determine which outlays
should be reported as capital assets.
CAPITAL LEASE. An agreement that conveys the right to use property, plant, or equipment, usually for
a stated period of time. See LEASE-PURCHASE AGREEMENTS.
CAPITAL PROJECTS FUND. A fund created to account for financial resources that are restricted,
committed or assigned for the acquisition or construction of major capital facilities (other than those
financed by proprietary funds and trust funds).
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
CASH BASIS. A basis of accounting under which transactions are recognized only when cash is
received or disbursed.
CASH WITH FISCAL AGENT. An asset account reflecting deposits with fiscal agents, such as
commercial banks, for the payment of bond principal and interest.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING PROGRAM. A
voluntary program administered by the GFOA to encourage governments to publish efficiently
organized and easily readable CAFR's and to provide technical assistance and peer recognition to the
finance officers preparing them.
CHANGE IN THE FAIR VALUE OF INVESTMENTS. The difference between the fair value of
investments at the beginning of the year and at the end of the year, taking into consideration
investment purchases, sales, and redemptions.
COMMITTED FUND BALANCE, Amounts that can only be used for specific purposes determined by
formal action of the County's highest level of decision-making authority (the Board of Supervisors) and
that remain binding unless removed in the same manner. The underlying action that imposed the
limitation needs to occur no later than the close of the reporting period.
COMPENSATED ABSENCES. Absences, such as vacation, illness and holidays, for which it is
expected employees will be paid. The term does not encompass severance or termination pay,
postretirement benefits, deferred compensation or other long-term fringe benefits, such as group
insurance and long-term disability pay.
COMPONENT UNIT. A legally separate organization that must be included in the financial report of the
primary government (primary government+ component units = financial reporting entity).
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR). A financial report that contains, at a
minimum, three sections: 1) introductory 2) financial, and 3) statistical, and whose financial section
provides information on each individual fund and component unit.
CONCENTRATION OF CREDIT RISK. The risk of loss attributed to the magnitude of a government's
investment in a single issuer.
CONTINGENT LIABILITY. Items that may become liabilities as a result of conditions undetermined at a
given date, such as guarantees, pending lawsuits, judgments under appeal, unsettled disputed claims,
unfilled purchase orders, and uncompleted contracts. Contingent liabilities should be disclosed within
the financial statements (including the notes) when there is a reasonable possibility a loss may have
been incurred. Guarantees, however, should be disclosed even though the possibility of loss may be
remote.
CREDIT RISK. The risk that an issuer or counter-party to an investment will not fulfill its obligations.
(159)
COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
CURRENT FINANCIAL RESOURCES MEASUREMENT FOCUS. Measurement focus according to
which the aim of a set of financial statements is to report the near-term (current) inflows, outflows, and
balances of expendable (spendable) financial resources. The current financial resources measurement
focus is unique to accounting and financial reporting for state and local governments and is used solely
for reporting the financial position and results of operations of governmental funds.
DEBT. An obligation resulting from the borrowing of money or from the purchase of goods and
services. Debts of governments include bonds, time warrants, and notes.
DEBT SERVICE FUND. A fund established to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
DEFERRED INFLOWS. An acquisition of net position by the government that is applicable to a future
reporting period.
DEFERRED OUTFLOWS. A consumption of net position by the government that is applicable to a
future reporting period.
DEFICIT. (1) The excess of the liabilities of a fund over its assets. (2) The excess of expenditures over
revenues during an accounting period or, in the case of proprietary funds, the excess of expenses over
revenues during an accounting period.
DEFINED BENEFIT PENSION PLAN. A pension plan having terms that specify the amount of pension
benefits to be provided at a future date or after a certain period of time; the amount specified usually is
a function of one or more factors such as age, years of service, and compensation.
DEPRECIATION. A method of allocating the cost of an asset over its useful life. In accounting for
depreciation, the cost of a capital asset, less any salvage value, is prorated over the estimated service
life of such an asset, and each period is charged with a portion of such cost. Through this process, the
entire cost of the asset is ultimately charged off as an expense.
DUE FROM OTHER FUNDS. An asset account used to indicate amounts owed to a particular fund by
another fund for goods sold or services rendered. This account includes only short-term obligations on
open account, not interfund loans.
DUE TO OTHER FUNDS. A liability account reflecting amounts owed by a particular fund to another
fund for goods sold or services rendered. These amounts include only short-term obligations on open
account, not interfund loans.
ECONOMIC RESOURCES MEASUREMENT FOCUS. Measurement focus under which the aim of a
set of financial statements is to report all inflows, outflows, and balances affecting or reflecting an
entity's net position. The economic resources measurement focus is used for proprietary and fiduciary
funds, as well as for government-wide financial reporting. It is also used by business enterprises in the
private sector.
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
ENCUMBRANCES. Commitments related to unperformed (executory) contracts for goods or services.
Used in budgeting, encumbrances are not GAAP expenditures or liabilities, but represent the estimated
amount of expenditures ultimately to result if unperformed contracts in process are completed.
ENTERPRISE FUND. Proprietary fund type used to report an activity for which a fee is charged to
external users for goods and services.
EXPENDITURE-DRIVEN GRANTS. Government-mandated or voluntary nonexchange transactions in
which expenditure is the prime factor for determining eligibility. Also referred to as reimbursement
grants.
EXCHANGE-LIKE TRANSACTION. Transaction in which there is an identifiable exchange between
the reporting government and another party, but the values exchanged may not be quite equal or the
direct benefits of the exchange may not be exclusively for the parties to the exchange.
EXPENDITURES. Decreases in net financial resources. Expenditures include current operating
expenses requiring the present or future use of net current assets, debt service and capital outlays, and
intergovernmental grants, entitlement and shared revenues.
EXPENSES. Outflows or other using up of assets or incurrences of liabilities (or a combination of both)
from delivering or producing goods, rendering services or carrying out other activities that constitute the
entity's ongoing major or central operations.
EXTERNAL AUDITORS. Independent auditors typically engaged to conduct an audit of a government's
financial statements.
EXTERNAL INVESTMENT POOL. An arrangement that commingles (pools) the moneys of more than
one legally separate entity and invests, on the participants' behalf, in an investment portfolio; one or
more of the participants is not part of the sponsors reporting entity. An external investment pool can be
sponsored by an individual government, jointly by more than one government, or by a nongovernmental
entity. An investment pool that is sponsored by an individual state or local government is an external
investment pool if it includes participation by a legally separate entity that is not part of the same
reporting entity as the sponsoring government. If a government-sponsored pool includes only the
primary government and its component units, it is an internal investment pool and not an external
investment pool.
FAIR VALUE. The amount at which a financial instrument could be exchanged in a current transaction
between willing parties, other than in a forced or liquidation sale.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). A corporation created by the federal
government that insures deposits in banks and savings associations.
FIDUCIARY FUNDS. The trust and agency funds used to account for assets held by a government unit
in a trustee capacity or as an agent for individuals, private organizations, other government units, and
or other funds.
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
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FINANCIAL RESOURCES. Resources that are or will become available for spending. Financial
resources include cash and resources ordinarily expected to be converted to cash (receivables,
investments). Financial resources may also include inventories and prepaids (because they obviate the
need to expend current available resources).
FISCAL ACCOUNTABILITY. Responsibility of governments to justify that their actions in the current
period have complied with public decisions concerning the raising and spending of public moneys in the
short term (usually one budgetary cycle or one year).
FISCAL AGENT. A fiduciary agent, usually a bank or county treasurer, who performs the function of
paying debt principal and interest when due.
FOREIGN CURRENCY RISK. The risk that changes in exchange rate will adversely affect the fair
value of an investment or a deposit.
FUND. A fiscal and accounting entity with a self-balancing set of accounts in which cash and other
financial resources, all related liabilities and residual equities, or balances, and changes therein, are
recorded and segregated to carry on specific activities or attain certain objectives in accordance with
special regulations, restrictions, or limitations.
FUND BALANCE. Net position of a governmental fund (difference between assets, liabilities, deferred
outflows of resources, deferred inflows of resources).
FUND FINANCIAL STATEMENTS. Basic financial statements presented for funds, in contrast with
government-wide financial statements.
FUND TYPE. Any one of eleven categories into which all individual funds can be classified.
Governmental fund types include the general fund, special revenue funds, debt service funds, capital
projects funds, and permanent funds. Proprietary fund types include enterprise funds and internal
service funds. Fiduciary fund types include pension (and other employee benefit) trust funds,
investment trust funds, private-purpose trust funds and agency funds.
GENERAL FUND. The general fund is one of five governmental fund types and typically serves as the
chief operating fund of the government. The general fund is used to account for all financial resources
except those required to be accounted for in another fund.
GENERAL REVENUES. All revenues not reported as program revenues in the government-wide
statement of activities.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). The conventions, rules, and
procedures that serve as the norm for the fair presentation of financial statements. The various sources
of GAAP for state and local governments are set forth by SAS No. 69, The Meaning of"Present Fairly
in Conformity with Generally Accepted Accounting Principles" in the Independent Auditors' Report.
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
GOVERNMENTAL ACCOUNTING. The composite activity of analyzing, recording, summarizing,
reporting and interpreting the financial transactions of governments.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB). The ultimate authoritative
accounting and financial reporting standard-setting body for state and local governments. The GASB
was established in June 1984 to replace the National Council on Governmental Accounting (NCGA).
GOVERNMENTAL FUNDS. Funds generally used to account for tax-supported activities. There are
five different types of governmental funds: the general fund, special revenue funds, debt service funds,
capital projects funds, and permanent funds.
GOVERNMENT-WIDE FINANCIAL STATEMENTS. Financial statements that incorporate all of a
government's governmental and business-type activities, as well as its nonfiduciary component units.
There are two basic government-wide financial statements: the statement of net position and the
statement of net activities. Both basic governmental financial statements are presented using the
economic resources measurement focus and the accrual basis of accounting.
INFRASTRUCTURE. Long-lived capital assets that normally are stationary in nature and normally can
be preserved for a significantly greater number of years than most capital assets. Examples of
infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems,
dams and lighting systems.
INTEREST RATE RISK. The risk that changes in interest rates will adversely affect the fair value of an
investment or a deposit.
INTERFUND LOANS. Flow of assets (such as cash or goods) between funds and blended component
units of the primary government without equivalent flows of assets in return and without a requirement
for payment.
INTERNAL SERVICE FUND. Proprietary fund type that may be used to report any activity that provides
goods or services to other funds, departments or agencies of the primary government and its
component units, or to other governments, on a cost-reimbursement basis.
JOINT VENTURE. A legal entity or other organization that results from a contractual arrangement and
that is owned, operated, or governed by two or more participants.
LAPSE. As applied to appropriations, the automatic termination of an appropriation. Except for
indeterminate appropriations and continuing appropriations, an appropriation is made for a certain
period of time. At the end of this period, any unexpended or unencumbered balance thereof lapses,
unless otherwise provided by law.
LEASE-PURCHASE AGREEMENTS. Contractual agreements that are termed leases, but that in
substance are purchase contracts.
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
LEGAL LEVEL OF BUDGETARY CONTROL. The level at which a government's management may
not reallocate resources without special approval from the legislative body.
LIABILITIES. Probable future sacrifices of economic benefits, arising from present obligations of a
particular entity to transfer assets or provide services to other entities in the future as a result of past
transactions or events.
LOANS RECEIVABLE. An asset account reflecting amounts loaned to individuals or organizations
external to a government, including notes taken as security for such loans. Loans to other funds and
governments should be recorded and reported separately.
MAJOR FUND. A governmental fund or enterprise fund reported as a separate column in the basic
fund financial statements and subject to a separate opinion in the independent auditor's report. The
general fund is always a major fund. Otherwise, major funds are funds whose revenues/expenditures,
assets or liabilities are at least 10% of corresponding totals for all government or enterprise funds and
at least 5% of the aggregate amount for all governmental and enterprise funds for the same item. Any
other government or enterprise fund may be reported as a major fund if the government's officials
believe that fund is particularly important to financial statement users.
MANAGEMENT'S DISCUSSION AND ANALYSIS. Is required supplementary information that
introduces the basic financial statements and provides an analytical overview of the government's
financial activities.
MEASUREMENT FOCUS. Types of balances (and related changes) reported in a given set of financial
statements (economic resources, current financial resources, assets and liabilities resulting from cash
transactions).
MODIFIED ACCRUAL BASIS. Basis of accounting used in conjunction with the current financial
resources measurement focus that modifies the accrual basis of accounting in two important ways: 1)
revenues are not recognized until they are measureable and available and 2) expenditures are
recognized in the period in which governments in general normally liquidate the related liability rather
than when that liability is first incurred (if earlier).
NONSPENDABLE FUND BALANCE. The portion of the net position of a governmental fund that
cannot be spent either because the underlying resources are not in spendable form or because the
government is legally or contractually required to maintain the resources intact.
OPERATING LEASE. A lease dose not transfer ownership rights, risks and rewards from the lessor to
the lessee, the lease is called an operation lease and is similar to a rental.
OTHER FINANCING SOURCES. An increase in the net position of a governmental fund other than
revenues. Only items identified as other financing sources in authoritative accounting standards may be
classified as such.
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
OTHER FINANCING USES. A decrease in the net position of a governmental fund other than
expenditures. Only items identified as other financing uses in authoritative accounting standards may
be classified as such.
OVERLAPPING DEBT. In the context of the statistical section, the outstanding long-term debt
instruments of governments that geographically overlap, at least in part, the government preparing the
statistical section. That is, debt of another government that at least some of the reporting government's
taxpayers will also have to pay in whole or part. Lower levels of government are not required to treat
debt of the state as overlapping debt, even though it technically meets this definition. Furthermore,
states, regional governments, and counties are exempted from the requirement to present overlapping
debt, although counties are still encouraged to do so.
PROGRAM REVENUES. Term used in connection with the government-wide statement of activities.
Revenues that derive directly from the program itself or from parties outside the reporting government's
tax base directly related to the program. They reduce the net cost of the function to be financed from
the government's general revenues.
PROPRIETARY FUNDS. Funds that focus on the determination of operating income, changes in net
position (or cost recovery), financial position, and cash flows. There are two different types of
proprietary funds: enterprise funds and internal service funds.
REBATABLE ARBITRAGE. A requirement to remit to the federal government interest earnings in
excess of interest costs when the proceeds from the sale of tax-exempt securities are reinvested in
materially higher yielding taxable securities.
REPORTING ENTITY. The oversight unit and all of its component units, if any, that are combined in the
CAFR/BFS.
REQUIRED SUPPLEMENTARY INFORMATION. (RSI) One of two categories of supporting
information: required supplementary information (RSI) and supplementary information (SI)
RESTRICTED ASSETS. Assets whose use is subject to constraints that are either (a) externally
imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of
other governments or (b) imposed by law through constitutional provisions or enabling legislation.
RESTRICTED FUND BALANCE. The portion of the net position of a governmental fund that
represents resources subject to externally enforceable constraints.
RESTRICTED NET POSITION. One of three components of net position that must be reported in both
government-wide and proprietary fund financial statements. It consists of restricted assets reduced by
liabilities or deferred inflows of resources related to those assets. Generally, a liability or deferred inflow
of resources relates to restricted assets if the assets results from a resource flow that also results in the
recognition of a liability/deferred inflow of resources or if the liability will be liquidated with the restricted
assets reported.
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
RETAINED EARNINGS. An equity account reflecting the accumulated earnings of an enterprise or
internal service fund.
REVENUE BONDS. Bonds whose principal and interest are payable exclusively from earnings of an
enterprise fund. In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the
enterprise fund's property.
RISK MANAGEMENT. All the ways and means used to avoid accidental loss or to reduce its
consequences if it does occur.
SELF-INSURANCE. A term often used to describe the retention by an entity of a risk of loss arising out
of the ownership of property or from some other cause, instead of transferring that risk to an
independent third party through the purchase of an insurance policy. It is sometimes accompanied by
the setting aside of assets to fund any related losses. Because no insurance is involved, the term self-
insurance is a misnomer.
SINGLE AUDIT. An audit designed to meet the needs of all federal grantor agencies and performed in
accordance with the Single Audit Act of 1984 (as amended) and Office of Management and Budget
(OMB) Circular A-133, Audits of States, Local Governments and Non-Profit Organizations.
SPECIAL DISTRICT. An independent unit of local government organized to perform a single
government function or a restricted number of related functions. Special districts usually have the
power to incur debt and levy taxes; however, certain types of special districts are entirely dependent
upon enterprise earnings and cannot impose taxes. Examples of special districts are water districts,
drainage districts, flood control districts, hospital districts, fire protection districts, transit authorities, port
authorities, and electric power authorities.
SPECIAL REVENUE FUND. Governmental fund type used to account for the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified purposes other than debt
service or capital projects and exclusive of resources held in trust for individuals, private organizations
or other governments.
TAX AND REVENUE ANTICIPATION NOTES (TRANS). Notes issued in anticipation of the collection
of taxes and revenues, usually retirable only from tax collections, and frequently only from the proceeds
of the tax and revenues levy whose collection they anticipate.
TRUST FUNDS. Funds used to account for assets held by a government in a trustee capacity for
individuals, private organizations, other governments, and/or other funds.
UNASSIGNED FUND BALANCE, The residual classification for the County's General fund that
includes amounts not contained in the other classifications. In other funds, the unassigned classification
is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or
assigned to those purposes.
UNDESIGNATED UNRESERVED FUND BALANCE. The difference between total fund balance in a
governmental fund and its nonspendable, restricted, committed and assigned components.
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COUNTY OF BUTTE, CALIFORNIA
GLOSSARY FOR THE COMPREHENSIVE ANNUAL REPORT (CONTINUED)
JUNE 30, 2017
UNQUALIFIED OPINION. An opinion rendered without reservation by the independent auditor that
financial statements are fairly presented.
UNRESTRICTED NET POSITION. One of three components of net position that must be reported in
both government-wide and proprietary fund financial statements. It is the difference between total net
position and its two other components (net investment in capital assets and restricted net position).
VARIABLE-RATE INVESTMENT. An investment with terms that provide for the adjustment of its
interest rate (such as the last day of the month or a calendar quarter) and that, upon each adjustment
until the final maturity of the instrument or the period remaining until the principal amount can be
recovered through demand, can reasonably be expected to have a fair value that will be unaffected by
interest rate changes.
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