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Comrehensive Annual Financial Report - FY ended 6-30-16 (1 of 3)
LVUIIMT'T,f OF BUTTE State of California. ANNUALCOMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 "'�rNP� 'x-:. ���"i P ,�f". ✓ �',,�u,'� u,N re�, iWr�h � i r,.wx °i���� NV s �r P vrfi44 � rd � �r v"ro a� r, i r. Oregon City Covered Bridge Photo by Peggy Moak Prepared Under the Supervision of: David A. Houser, county Auditor-Controller ® / [ | F 0 k \ | & ® 1 ;v%a��rey�i Introductory � C ALIF0RN! IA COUNTY OF BUTTE,CALIFORNIA TABLE OF CONTENTS INT'RODUC'TORY SECTION Letterof Transmittal...........................................................................................................i Boardof Supervisors.........................................................................................................vi Principal County Officials................................................................................................. vii OrganizationChart...........................................................................................................viii GFOA Certificate of Achievement for Excellence in Reporting............................................ ix FINANCIAL SECTION IndependentAuditor's Report ...........................................................................................1 Management's Discussion and Analysis..............................................................................3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ............................................................................................ 17 Statement of Activities.................................................................................................. 18 Fund Financial Statements: Governmental Funds: BalanceSheet................................................................................................................ 21 Reconciliation of the Governmental Funds Balance Sheet to the Government Wide Statement of Net Position ............................................................................................22 Statement of Revenues, Expenditures, and Changes in Fund Balances.......................23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Government-wide Statement of Activities.. 24 ProprietaryFunds ............................................................................................................. 25 Statement of Net Position ............................................................................................ 25 Statement of Revenues, Expenses, and Changes in Net Position ................................ 27 Statement of Cash Flows .............................................................................................. 28 FiduciaryFunds:................................................................................................................ 31 Statement of Fiduciary Net Position............................................................................. 31 Statement of Changes in Fiduciary Net Position-Investment Trust Fund ....................32 Notes to the Basic Financial Statements ..........................................................................34 RequiredSupplementary Information..............................................................................89 Schedule of Changes in Net Pension Liability and Related Ratios....................................90 County Employee's Retirement Plan (Defined Pension Benefit Plan): Schedule of Changes in Net Pension Liability and Related Ratios....................................91 COUNTY OF BUTTE,CALIFORNIA TABLE OF CONTENTS Schedule of Plan Contributions......................................................................................... 92 Other Post-Employment Benefits(OPEB) Plan................................................................... 93 Schedule of Funding Progress........................................................................................... 93 Major Governmental Funds: GeneralFund.....................................................................................................................95 SocialServices Fund..........................................................................................................97 PublicHealth Fund............................................................................................................99 BehavioralHealth Fund................................................................................................... 102 RoadFund....................................................................................................................... 105 Supplemental Information: Combining and Individual Fund Statements and Schedules: Non-major Governmental Funds: Combining Statements: Combining Balance Sheet............................................................................................... 111 Child Support Services Fund ........................................................................................... 117 County Service Areas Special Revenue Fund.................................................................. 118 Equipment Replacement Fund ....................................................................................... 119 Fishand Game Fund ....................................................................................................... 121 Housing and Community Development Fund................................................................. 122 IHSS Public Authority Special Revenue Fund.................................................................. 123 Impact Fees Special Revenue Fund................................................................................. 124 Transit Special Revenue Fund......................................................................................... 125 DebtService Fund........................................................................................................... 126 CapitalProjects Fund...................................................................................................... 129 PermanentFund ............................................................................................................. 133 InternalService Funds........................................................................................................ 135 Combining Statement of Net Position............................................................................ 136 Combining Statement of Revenues, Expenses and Changes in Fund Net Position........ 138 Combining Statement of Cash Flows.............................................................................. 140 FiduciaryFund Types.......................................................................................................... 145 Combining Statement of Fiduciary Assets and Liabilities............................................... 146 Combining Statement of Changes in Fiduciary Assets and Liabilities ............................ 147 COUNTY OF BUTTE, CALIFORNIA TABLE OF CONTENTS Detail Schedule of Expenditures Budget to Actual........................................................... 148 GeneralFund................................................................................................................... 149 SocialServices Fund........................................................................................................ 155 PublicHealth................................................................................................................... 157 BehavioralHealth............................................................................................................ 158 Road................................................................................................................................ 159 STATISTICAL SECTION Financial Trends: Net Position by Component................................................................................................ 163 Changesin Net Position...................................................................................................... 164 Fund Balances-Governmental Funds.................................................................................. 166 Changes in Fund Balances-Governmental Funds ............................................................... 167 Revenue Capacity: Property Taxes Levies and Collections................................................................................ 168 Assessed Value of Taxable Property................................................................................... 170 Property Tax Rates-Direct and Overlapping Governments................................................ 171 PrincipalProperty Tax Payers............................................................................................. 172 Debt Capacity: Legal Debt Margin Information .......................................................................................... 173 Ratio of Net General Obligation Bonded Debt to Taxable Assessed Value and Net General Obligation Bonded Debt per Capita.................................................................................... 174 Ratio of Outstanding by Debt and Type.............................................................................. 175 OverlappingBonded Debt .................................................................................................. 176 Ratio of General Bonded Debt Outstanding....................................................................... 177 Demographic and Economic Statistics................................................................................ 178 County Industry Employment Distribution......................................................................... 179 Miscellaneous Statistical Information ................................................................................ 180 PrincipalEmployers............................................................................................................. 181 Operating Information Operating Indicators by Function....................................................................................... 182 Capital Asset Statistics by Function .................................................................................... 183 Glossary....................................................................................................................................... 184 CArkFC7RNIA 'B u t t e"..�.. o u n ty C A L I F O R N I A 25 COUNTY CENTER DRIVE OROVILLE, CALIFORNIA 95965-3392 Telephone(530)538-7607 Fax;(530)538-7633 December 21, 2016 To the Citizens of Butte County, California Dear Citizens:. The Comprehensive Annual Financial Report(CAFR)of the County of Butte(County)for the fiscal year ended June 30, 2016, is hereby submitted in compliance with Sections 25256 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, 2016, and the respective changes in financial position and cash flow,where applicable,thereof for the fiscal year then ended. AIII 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 3 through 15 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. i ` Letter 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 1& 185O. The County islocated [nthe northern portion ofthe Sacramento VaOey. R[s[mghnnnthe Sacramento River, the County's western boundary, tmthe Sierra Nevada Mountains, its eastern perime1er, the County's 1,665 square miles range in elevation from sixty feet to over 7.008 feet resulting in a considerable variation in climate. Thee are five incorporated cities/town located within the County: Biggs, Chico, Gridley, Oomv||Xe, and Paradise. The County's popuUationis221'3l6with approximately 3896cf 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 commlttees, appointing the Chief Administrative Officer ([AD), and appointing non-elected department heads. Supervisors are elected tofour-year terms staggered every two years with two supervisors being elected during an election and two years I ater,three supervisors are elected. The County Charter designates that certain officers are elected which are responsible for the offices of the County: Assessor, Auditor-[ontrmI|er. Clerk-Recorder, District Attorney, Sheriff-[mronecand Tneasurer'Tax[o1|ector. The County provides afu|| range ofservices including sheriff; health and sanitation; the construction and maintenance of highwa}s, streets' and infrastructure assets; recreational activities and cultural events; election; library; social services; and admimis1robon. The County maintains awebsite located at:www.butteC0UDVQet 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 namem few. MAJOR INITIATIVES Butte County is undertaking several major initiatives notwithstanding significant fiscal limitations: Capital' Proje,cts � 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 Rea||gmnment, which affected an increase in the number of criminal offenders incarcerated and supemised |oca||\c Butte County was awarded $40 nui|Uon in funding from the State and will be required to provide 1096 in match funding. v 0eai| Road Recycling and Waste Facility Module Expansion As identified in the Neal Road Recycling and VVas|a Facility Strategic Plan, an additional muduLewiU be added to the facility. In addition,as an alternative to the existing ponds,a septage receiving facility is being evaluated. � Government Campus Infrastructure Improvements The 8roviU|eGovernment Center Campus Master Plan, adopted bythe Board pnAugust 28, 2Q12, provided conceptual plans for future development ofthe OroviUecampus. Roof replacements atChico Library and 25 County Center Drive will be completed this year. Accessibility improvements at 3 and 7 County [enter Drive are also underway. ° Technology Upgrade Butte County Information Systems is updating and replacing outdated IT network components, Initial funding for and upgrade of the mobile radio system is provided in the 2016-17 budget. The recommended upgrade will allow clearer, faster communications and reponse to improve public safety communications. FACTORS AFFECTING FINANCIAL CONDITION Economic Challenges As a result of Butte County Board of Supervisors and County employee's strong commitment toward prudent financial management,the County has been able to strengthen fund balance.Overafl fiscal position is showing improvement, and the U.S. Economy is projected in the coming year. In the second quarter of 2016i the U.S. economy �ncneased at an annual rate pf2.996compared to an increase of 1496 in the first quarter of2O1G. This positive change is the result of increased personal consumption expenditures,exports, and increases instate and local government spending. The real estate madket, 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. Although unemployment rates continue to improve there are still thousands of residents looking for employment, We're in the midst nfavery serious drought which impacts the surrounding agriculture community. Pension and healthcare costs continue to dominate the conversation about future position, The County has proactively Laken steps over that past years to mitigate increased costs by increasing the employee contributions to CAPERS retirement plan and capping the County's share of healthcare pnenniums. The County is negotiating member cost sharing amounts as existing collective bargaining agreements come up for renewal. The County remains onthe path towards fiscal stability and the economy isbeginning tmsee growth, the County must continue to be prudent when utilizing our limited resources in tackling the challenges previously identified: restoration of services, improvements to infrastructure, unfunded pension liabilities, deferred maintenance of facilities, retiree health care costs, pension obligation bund costo and compensation for employees. The Board of Supem�smrs 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 hais established a comprehensive framework of internal controls designed to ensure that the assets of the government are protected from loss,theft or misuse.This frarnework 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 mfestimates and judgments bvmanagememt Single Audit Asarecipient offederal and state financial assistance, the County is required to undergo an annual single audit inconformity with the provisions ofthe S|ng[eAudit Act Amendments of1995and the U.S. Office of Management and Budget CircuflsrA-133,Audits ofStates, Local Governments, and Non-profit Organizations. Information related to this single audit include the Schedule of Expenditures of Federal Am/ands. Schedule of Findings and'Questioned Costs,and the independent auditor's report oninternal control and compliance. The County is also responsible for ensuring that adequate internao controls are in place to ensure compliance with applicable laws and regulations related to those programs. Internal controls are subject tm periodic evaluation by management and the Auditor-Controller Division's internal audit staff, The 2015-16 Single Audit will be issued Linder separate cover and will be available by contacting the Auditor-Controller's office after March 31. 2U17. Budgeting Controls |naddition toaccounting controls,the County maintains budgetary cmntro|s.Theobiectivemfthesecontnois istoensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board cfSupervisors. 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 onorbefore August 3D. Budgeted expenditures are enacted into law through the passage of an appropriation. This mandates the maximum authorized expenditures for the fisca� year and cannot be exceeded except by subsequent amendments tothe budget bythe County's Board of Supervisors. An operating budget is adopted each fiscal year for all Governmental Funds. Expenditures are controlled atthe object level within budget units for the County. The object level within abudget unit [sthe level at which expenclltures may not legally exceed appropriations, Pursuant to Board Resolution 14-154 transfers of appropriations between object levels within the same budget unit require approval of the Chief Administrative Office.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 upon approval ofthe Board mfSupervisors. 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 ofapplicable appropriations, The County also maintains an encumbrance accounting system as one technique of accomplishing budgetary control and cash p|anning. Encumbered appropriations lapse at the end of each fiscal year. Cc .►�. f tt ....,,. ..,..,. iM] t tiff Credit Rating This year Butte County received a credit upgrade from A to A+ by Standard and IPoor's Rating Service. The County proudly maintains a strong credit rating and strives to continue this achievement. OTHER INFORMATION Independent Audit County charter requires an annual audit by independent certified public accountants. The firm of Gallina, LLP was selected by the County to rneet 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 .Mune 30, 2016, 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, 2016, 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, 2015. This achievement represents the County's 8th 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 CAFR that satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe 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. 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 V COUNTY OF BUTTE Board of Supervisors June 30, 2016 District ...... ........................................Bill Connelly Chair* District 2........ .......................................Larry Wahl District ,3------------------------------- -_ _ Maureen Kirk, vice Chair* District 4...................................... ...... ....1—.......... Steve Lambert District 5- -- - ••. ........................................Doug Teeter *Chosen annually at the first meeting in January. vi COUNTY OF BUTTE Principal County Officials June 30, 2016 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 Dorian Kittrell Chief Administrative Officer Paul Hahn Child Support Services_____________ _____________ _ __-_____Sean Farrell County Counsel--------------------------------------------------------------Bruce Alpert Development Services.................................................Tim Snellings Employment and Social Services...............................Cathi Grams Farm, Home &4-H Advisor-----------------------------------------Randall "Cass" Mutters Fire Chief Darren Read General Services Grant Hunsicker Human Resources,... ..................................... ------.Pamela Knorr Information Systems____________________________________________________Art Robison Library_________________----------------------------------------------------------- __ _____._.._Melanie Lightbody Chief Probation Officer Steve Bordin Public Health------- ...... . .. Cathy Raevsky Public Works Dennis Schmidt ------------------------------------------------------------------- Water & Resource Conservation Paul Gosselin -------------------------------- VIE -A kil luj D U. 0 0 ce. t COUNTY OF BUTTE GFOA Certificate of Achievement for Excellence in Reporting Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to County of'Blytta California For its Comprehensive AntILIal Financial Report for the Fiscal Year Ended June, 30, 2015 Executive Director/CEO ix �i As C A L I F 0 R N I A C A L I F 0 R N I A � Financial Section ;6iA ® J & [ | F 0 k \ | A © p��!f uuli�Jli�l��1 GALLINAH,1 1 NNAMMOMaut r,rx nr- rem 0 w' e) rna r� a rC )Urax v'ui 77, INDEPENDENT AUDITOR'S REPORT Board of Supervisors County of Butte 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, 2016, and the related notes to the financial statements, which collectively comprise the County's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with 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. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our aud`xt. 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 Govermaent Auditing S'tand'ards, issuedby the Comptroller General of the United States. Those standards requure 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, 2016, 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. 1 925 Iliglrlanrl POilrlIC Drive,SUib 450,Roseville,CA 95678 5418 lel:916.7811 J800 0 fix:O10.811,7950 0 vvrtie ,gallinur.rum Board of Supervisors County of Butte 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 post-employment 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 21, 2016 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. cuf Roseville, California December 21, 2016 2 Managernent's Discussion acrd Analysis The information in this section is not cowered by the Independent Auditor's Report. It is presented as required supplementary information for the benefit of the readers of the Comprehensive Annual Financial Report. ui�%rrr r; r �,rr rriiiri rii r,r rr-ri rirrir ��ir rii rrr;ir r,r„rim cirri �rri r�.ir r - rr rrr-+ rr ri rr-ir .. r JllU,r/�'�dO,�r/l6Om/Jdd/?OILr.�iO////P/f.Ir!/Ier1 L/rlCd/,rr/r/Q�,/ilk/L/PJL/,,,:,,✓%l//r/.,OLId./L<e!r///d'"%!JGl/✓/ll/,r�r/L!�//r/GO�l�dO%!07//i/L/Gl,rl/JO//!/�/U%Ur///d.;/rrrGI,LJY,�/l/r//�.1�///til,JLO//�//lig/„G✓lJ%r/00///////.//.6,�,LGIG//,�L.U!//,.O/L!lOrrd2//9`. 3 In this section of the County of Butte's (County) Comprehensive Annual Financial Report, the County's management d5scuis esfinmwda| results for the fiscal year ended June 30 3016 It should be reed 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 Net Position- Change in Net Position from the previous year was a decre7ase Government $74 miHion of$5.6 million or 6%, due to increase in pension 111111iabil Wide Fund Balance- Change in Governmental Fund balance from the prev.ous year Governmental $136 million was an, increaise of$9 miHion or 7% due to increased revenue and operating efficiencies. Change in General Fund balance from the previous year was an General Fund $58 million increase of $7 million or 13%, due to increased revenue and operating efficiencies. Expenses $365 million Change in Expenses for Governmental Activities from the previous-year was an increase or$1.8 million or less than 1%, Change in Revenues for Governmental Activities from the Revenues $358 million previous year was a decrease of$1 million. Change in Long Term Liabilities for Govern,men�a Acflviit�ies Long Term $263 7million from the previous year was an increase of $20 million as a Liabilities result of borrowing for construction of the Hall of Records and tincreased retireme.nt benefit obligations. OVERVIEW [)FTHE FINANCIAL STATEMENTS A. Basic Financial Statements The basic financial statements presented in the [nunty^oCAFR 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 themiselves. 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 Lowhich it has met operating objectives efficiently and effectively, using all resources available,and whether itcan continue todmso.The statement of net position presents information onall ofthe County's 4 assets and liabilities, and deferred) 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 ofthe County isimproving ordeclining. 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 tothe change occurs, regardless cf the timing ofrelated cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in futurefiscal periods(e,.g.,uncoflected taxes and earned but unused vacation |eave). 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 ntherfunctiomsthat are intended torecover all orasignificant portion oftheir costs through user fees and charges(business-type activities).The governmental activities of the County include general government, public protection, public ways a,ndfacilities, health and sanitation, public assistance, education,and recreation. The business-type activities ofthe County include awaste 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 acmmuntab|e. Blended component units, although legally separate entities, are in substance pert of the County's operations and therefore data from these component units are blended in with operational funds of the County. Fimemda| 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 inpublic forum, Afund isagrouping ofrelated accounts that are used to maintain cmmtro] over resources that have been segregated for specific activities or purposes stipulated by |mvvs, regulations or policies. The funds of the County are divided into three categories: governmental, proprietary, and fiduciary funds. Governmental fonds are used to account for essentially the same functions reported as, governmental activities in the government-wide financial statememts. 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 ear-termainf|ovvsamdoutf|owspfspendaNeresources, asweUesunbm[ancesof spendable resources available at the end of the fiscal year. Such, information may be useful in evaluating a government's near-term financing requirements. Because the focus ofgovernmental funds isnarrower than that mfthe govermment'vvidefinancim| statements,it is useful to comparethe information presented forgovernmental 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 � !Cgilint f Butte Ma .............._,_.....___M49gmenfs_.Qisc 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 governmentali 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 othergovernmental 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. 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 OPER(Other Post-Employment Benefits) benefits to its em:ployees. 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 OPER. mrrrirrrrrrr��ri,r�rrrrrrrrrrrrrrrrfmrrrrrrfrrLirrgrrrr�rrrerrrrrru,.rr,r,rc„✓ .r6 County ofDiscussion and Anal 1 GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS Table 1-Net Position Governmental Business-type Activities Activities Total Total Cha nge %Cha nge 2016 to 2015 2016 to 2016 2015 2016 2015 2016 2015 2015 Current and otherassets $181,634 $173,674 $20,438 $20,939 $202,072 $194,613 $7,458 3.7% Capital assets 161,443 177,116 22,988 19,356 184,431 196,472 (6,5%) Deferred outflow ofresources 16,815 15,174 162 145 16,977 15,319 1,659 9.8% Total assets&deferred outflows- 359,893 365,964 43,587 40,440 403,480 _406,404 (2,924) (0.7%) Current and other liabilities 28,950 29,237 2,283 367 31,233 29,604 1,629 5.2% Long-term liabilities 263,907 242,575 14,262 13,940 278,169 256,525 21,654 7.8% Deferred inflow ofresources 19,5100 39,785 208 433 19,708 40,218 (20,510) (104.1%) Total liabilities deferred inflows 312,357 311,597 16,753 14,740 329,110 326,337 2,773 1% Net position: Net investment in capital assets 151,756 168,983 16,065 11,296 167,822 180,279 (12,457) (7.4%) Restricted 136,834 95,932 136,834 95,932 40,902 29.9% Unrestricted (241,0551 (210,556) 10,769 14,404 (230,286) (196,152) (34,134) 14,8% Total net position 47,536 54,359 26,834 25,700 74,371 80,059 (5,688) (7.6%) The largest portion of the County's net position, $151,756 in governmental activities and $16,065 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 $136,834 for governmental activities is the net position subject to external restrictions on how they may be used. The remaining deficit balance of ($241,055) in governmental activities is the result of the County's unfunded Pension and Other Postemiployment 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 $6,823 primarily due to increased retirement costs. 7 mwAIon,an;LA6u#-1 YA 1:_s 0 Business-Type Activities accounted for an increase in net position of $1,134, primarily due to operating efficiencies. 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 $$Change %Change 2016to 2016 to 2.015 2016 2015 2016 2015 2016 2015 2015 Revenues: Program revenues: Charges for service 31,805 21,865 8,406 7,548 40,211 29,413 (10,798) (26.9%) Operatinggrants and contribution 212,696 227,392 - - 212,696 227,392 14,696 6.9% Capital grants and contributions 12,186 15,755 12,186 15,755 3,569 29.3% General Revenues: Propertytaxes 58,629 62,252 58,629 62,252 3,623 6.2% Sales taxes 4,338 4,715 4,338 4,715 377 8.7% Othertaxes and related revenues 1,302 987 1,302 987 (315) (24.2%) Unrestricted grants&contributions 34,030 15,399 34,030 15,399 (18,631) (54.7%) Unrestricted investment income 3,042 3,802 233 199 3,276 4,001 725 22,1% Miscellaneous revenues 329 6,927 30 - 358 6,927 6,569 1833.5% "total revenues 358,360 359,094 8,669 7,747 367,028 366,841 187 0.1% Program expenses: General government 19,494 33,285 - - 19,494 33,285 13,791 70,7% Public protection 109,431 104,222 109,431 104,222 (5,209) (4.8%) Public ways and facilities 33,074 34,940 33,074 34,940 1,866 5.6% Health and sanitation 68,462 63,593 68,462 63,593 (4,869) (7.1%) Public assistance 129,103 121,696 129,103 121,696 (7,407) (5.7%) Education 3,256 3,383 3,256 3,383 127 3.9% Culture and recreation services 271 274 271 274 3 1.2% Interest on long-term debt 2,090 1,922 - - 2,090 1,922 (168) (8.1%) Sanitation - - 7,535 6,151 7,535 6,151 -1,,384 (18.4%) Total expenses 365,182 363,315 7,535 6,151 372,716 369,466 3,250 0.9% Change in net position (6,822) (4,221) 1,134 1,596 (5,688) (2,625) (3,063) 53.9% Net position-beginning 54,359 276,492 25,700 25,863 80,059 302,355 (12) (0.0%) Prior period adjustment - (217,912) - (1,,759) (219,671) Net position-ending 47,536 54,359 26,834 25,700 74,371 80,059 (5,688) (7,6%) 8 Manp Discussion and A 5 Expenses and Program Revenues- Governmental Activities %40,0O0 120,000 ]O0,0VV 80,000 60,000 40,000 70,000 O Q�l 61 61 61 MProgram Expense in,Program revenue FINANCIAL ANALYSIS OF GOVERNMENTAL FUNDS Asnoted earlier,the County uses fund accounting toensure 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 inthese funds are the special districts governed by the Board of Supervisors. The focus of the County's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's financing requirements. In particular, total fund balance less the nonspendable portion is a useful measure of the County's net resources available forspencling at the end ufthe fiscal year. At June 30,2016,the County's governmental funds reported combined ending fund balainces of$136,834. The components oftotal fund balance are asfollows: w Nonspenclable fund balance,—$527 are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, aind are made up of inventories and prepaid expenses. • Restricted fund balance — $1Q5,487 consists of amounts with constraints put on their use by externally imposed creditors,grantors, contributions, laws, regulations or enabling legislation. m Committed fund balance-$7,500 has been established by the Board as an emergency reserve. • Assigned fund balance—$28 are amounts intended to be used for specific purposes by the Board of Supervisors, • Unassigned fund balance—$23,372 represents the residual c1lassification forthe County's General Fund. 9 Approximately 99.27%, or$13�6,278 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, withiin the constraints applied to the various categories of fund balance. With the exception of the nonspenclable 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 increased by $6,802 during the current fiscal year. As a measure of the general fund's liquidity, it is useful to compare both total fund bailance and spendable fund balance tototal fund expenditures. Total fund balance equates to44%cftotal fund expenditures, while spemda:Nefund balance equates tm42Y6oftotal fund expenditures. Ofthe general fund spendable fund balance,$Z7,1]2or4G96isrestricted. The social services fund has a total fund balance of$5,163 of which$5,148 is restricted. The overall fund balance decreased by$1,263 primarily due to increased expenditures imthe Title |V-EtVa|ver program. The public health fund has a total fund balance of$13,411 of which$13,411 is restricted. The overall fund balance decreased by $1,267 due to decreased sales tan realignment and capital improvement expenditures. The behavioral health fund has a total fund balance of $9,559 of which $9,559 is restricted. The overall fund balance increaised by$1,966 primarily resulting from operational efficiencies. The road fund has a total fund balance of$6,555. Ofthis amount, $2S6isnmnspendab|e,and the balance of$6,399 is restricted. The overall fund balance decreased by$2,012 during the current fiscal year, due tndeclining road taxes. 10 want y—of Butte and Anal 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 FY 2015 FY 2016 Change Revenue Sources Amount %of Total Amount %of Total Amount of Total Taxes $67,954 19.1% $64,270 17.2% ($3,684) (5.4%) Licenses and permits 3,996, 1,1% 3,604 1.0% (293) (7,5%) Fines,forfeitures and persalt 3,148 0.91% 8,144 2.2% 4,996 158.796' use of moneyand property 3,802 1.1% 6,867 1.8% 3,065, 80.6% Intergovernmental 255,545 71.8% 256,812 68.9% 1,267 0.5% Charges forservices 14,787 4.2% 29,675 8,09eo 14,888 100.7% other 6,891 1.9% 3,539 0.9% (3,352) 0.0% Tota 1 $356,023 100.0% $372,911 10010% $16,887 4.7% Significant changes for major revenue sources are explained below. • Charges for service—increase due to implementatiion of new accounting structure, • Taxes-decrease due to a larger than usual Teeter settlement in the previous yeair. Revenues in the Governmental Funds Other,0 V"' Chm'ps " ,1 , e ornoney,3r'id ,roperty,1,8,, Intergover Count LIMA Butt n and na[Y gnt -A— !L� 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 FY 2015 FY 2016, Change Function Amount ofTotaG Amount % of Tota I Amount % of Total General government $31,818 9,3% $28,942 7.9% (2,876) (9.0%) Public: protection 97,118 28.4% 112,321 30.6% 15,203 15,7% Public ways and facilities 19,082 5.6% 16,888 4.6% (2,194) (11.5%) Health and sanitation 64,446 18.9% 72,135 19.6% 7,689 11.9% Public assistance 121,408 35.596 128,880 35.1% 7,472 6.2% Education 3,256 110% 3,654 1.0% 398 12.2% Culture and recreation 463 0.1% 116 0.0% (347) (74.9%) Debtservice 3,952 1.2% 4,369 1.290 417 10.6% Tota I $341,543 100.0% $367,306 100.0% $25,763 7.59./ Expenditures in the ernmenital Funds 0 e bt s ervice, 1.2% Culture and recreation,0.0% Geneial Educa tion, 1.0% gow: i,� Flutfl ir,protection, 30,6% Public assistance, 35.1% H e a 10 1 a nd PUbliC'ways and s a nitation, '19.6% Ctrru'iMrlrw 6% Significant changes for major functions are explained below. • General Government—Decrease due to operating efficiencies. • Public Protection —The increase in this function is mainly due to a shift of responsibilities from the State to Counties. 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 fuind consists of the Neal Road Landfill Management fund and has a total net position of$26,834. Of this amount, $16,065 is investment in capital assets, and the balance of$10,769 is unrestricted. Overall net position increased by $1,134 due to an increase in revenue from fuel sales. 12 Coun P, Discussion and An yK The County's internal service funds have an aggregate net position of $49�35. Of this amount $005 is invested incapital assets, GENERAL FUND BUDGETARY HUGHLIGHTS Differences between the original budget and the final amended budget for revenues were an increase of S3,924. Tax revenues outperformed revenue estimates primarily due to better than expected estimates forPropertyTax and increased revenuefrom other governments.Differences betweenthe original budget and the final amended budget for expenditures were aincrease of$4,237. During the fiscal year, actual revenues were more than budgetary estimates by $7,648. The primary reason for the increase was the increased revenue received by aid from other governments. Differences in ao1um| expenditures to budgetary estimates were a decrease of$21,317. The primary reason for the decrease was efficiencies. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County's investment in capital assets for its governmental and business-type activities as of June 3O,2O16,amounts to$184,431(net ofaccumulated deprec)a1ion). Thisinvestment incapital assets includes land, structures and improvements, equipment, construction-in-progress, and infrastructure. The total decrease in the County's net investment in capital assets for the current period was 6.O%. Additional information on the County's capital assets can be found in the Notes tothe Financial Statements section ofthis report, note 4—Capital Assets. Key events affecting capital assets during the fiscal year included the following: A. Construction in progress capital assets were transferred to structures and improvements and equipment. B. For 8owermment-wiJe 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 asexpenditures. 13 Table 5- Capital Assets(Net of Depreciation) Governmental Business-type activities activities Total 2015 2016 2015 2016 2015 2016 Land $2,616 $2,740 $421 $421 $3,037 $3,161 Structures &improvements 38,780 46,238 17,455 17,025 56,235 63,262 Equipment 16,492 16,612 1,412 1,228 17,904 17,840 Infrastructure 111,784 9,3,011 0 0 111,784 93,011 Construction in progress 7,443 2,842 68 4,314 7,511 7,156 Total $177,115 $161,443 $19,356 $22,988 $196,472 $184,431 Long-Terim Obligations At June 30, 2016, the County had total long-term, obligations outstanding of$58,167 consisting of $8,583 in Certificates of Participation, capital lease obligations of $450, bonds payable of $48,480, and notes payable of$654. Additional long-term, liabilities include compensated leave payable of $15,106, actuarial claims liability of $7,833 for general insurance and worker's compensation self-insurance. Business activities had total long-term obligations of$13,869 consisting of$534 of capital lease obligations,$6,388 of Certificates of Participation, and landfill closure/post-closure care liability of$,6,757. Additional long-term liabilities include compensated leave payable of$190. Additional information on the County's long-term liabilities can, be found, in, the Notes to the Financial Statements section of this report, note 6-Long-Term Obligations. DEFERRED OUTFLOWS OF RESOURCES & 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 fiinancial statements. On the date of the financial statement these amounts are not available to pay liabilities,which other assets are. Once,the recognition criiteria 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 are 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. Whein all the recognition criteria are met,the deferred inflow of resources will become revenue or and increase to net pos,ition. The deferred outflow of resources reported on the Statement of Net Position for this fiscal year 14 B. Deferred Inflows ofResources (continued) 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 oractual experience. FISCAL OUTLOOK The County adopted its fiscal year 2OI6'2O17Final Budget|nthe total amount of$526,5OU,with a General Fund overall emergency reserve level of$7,500.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 ovvw fiscal problems, including the public safety and health and human services realignment. REQUEST FOR INFORMATION This financial report iodesigned toprovide ageneral 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 beaddressed to: Auditor-Controller 25County Center Drive Suite 12O 8roviUe, CA 95965 The County's Comprehensive Annual Financial Report can also be found at www.bluttecounty.net. 15 ® C A L | F U k N | A # Sit Financial Statements . Government-wide, Financial Statement 16 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF NET POSITION JUNE 30,2016 Primary Government Governmental Business-type Activities Activities Total ASSETS Cash and investments $ 142,851,842 $ 17,477,937 $ 160,329,779 Cash and investments with fiscal agent 653,71.3 2,330,844 2,984,557 Imprest cash 22,355 2,800 25,155 Interest receivable 316,397 39,933 356,330 Accounts receivable 4,510,902 558,862 5,069,764 Due from other governments 28,297,831 28,297,831 Prepaid items 219,924 26,906 246,830 Internal Balances (581) 581 - Inventories 290,394 - 290,394 Loans receivable 4,470,520 - 4,470,520 Capital assets, net Non-depreciable 5,582,232 4,735,151 10,317,383 Depreciable assets,net 155,861,102 18,252,393 174,113,495 Total Assets 343,076,631 43,425,407 386,502,038 DEFERRED OUTFLOWS OF RESOURCES-PENSION 16,815,333 161,937 16,977,270 LIABILITIES Current liabilities: Accounts payable 7,405,477 842,338 8,247,815 Salaries and benefits payable 6,703,449 57,645 6,761,094 Deposits payable 268,569 - 268,569 Unearned revenue 14,419,750 - 14,419,750 Accrued interest 152,247 131,650 283,897 Long term liabilities: Due within one year 18,911,532 1,183,706 20,095,238 Due in more than one year 62,194,432 12,685,888 74,880,320 OPEB Obligation 26,961,184 - 26,961,184 Net pension liability 155,839,648 1,643,876 157,483,524 Total Liabilities 292,856,288 16,545,103 309,401,391 DEFERRED INFLOWS OF RESOURCES Earnings on Pension Plan Investments 19,402,449 208,260 19,610,709 Deferred lease incentive payment 97,500 - 97,500 Total Deferred Inflaw of Resources 19,499,949 208,260 19,708,209 NET POSITION Net investment in capital assets 151,756,436 16,065,466 167,821,902 Restricted for: Health and sanitation 22,970,189 - 22,970,189 Publicsafety 23,814,650 - 23,814,650 Public ways &facilities 6,655,207 - 6,655,207 Social services 5,163,589 - 5,163,589 Other government programs 78,230,578 - 78,230,578 Unrestricted (deficit) (241,054,922) 10,768,515 (230,286,407) Total Net Position $ 47,535,727 $ 26,833,981 $ 74,369,708 The accompanying notes are an integral part of these financial statements. 17 COUNTY OF BUTTE, CALIFORNIA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30,2016 Net(Expense)Revenue and Program Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary government: Governmental activities: General government $ 19,494,479 $17,099,501 $ 19,159,588 $ $ 16,764,610 $ $ 16,764,610 Public protection 109,431,367 8,176,255 31,710,615 (69,544,497) (69,544,497) Public ways and facilities 33,073,748 8S7,994 44,179 12,186,193 (19,985,382) (19,985,382) Health and sanitation 68,462,617 4,293,783 43,806,232 - (20,362,602) (20,362,602) Public assistance 129,102,977 1,138,165 117,696,749 (10,268,063) (10,268,063) Education 3,256,166 171,464 275,716 - (2,808,986) (2,808,986) Culture and recreation services 270,721 68,258 3,475 (199,048) (199,048) Interest on long-term debt 2,090,317 - - - (2,090,317) (2,090,317) Total Governmental activities 365,182,392 31,805,420 212,696,494 12,186,193 (108,494,285) (108,494,285) Business-type activities: Sanitation 7,534,619 8,405,871 - - 871,252 871,252 Total Business-type activities 7,534,619 8,405,871 - - 871,252 871,252 Total Primary Government $372,717,011 $40,211,291 $212,696,494 $ 12,186,193 (108,494,285) 871,252 (107,623,033) General revenues: Taxes: Propertytaxes 58,629,417 58,629,417 Sales and use taxes 4,338,344 4,338,344 Other taxes and related revenues 1,302,226 1,302,226 Grants and contributions not restricted to specific programs 34,030,358 34,030,358 Unrestricted interest and investment earnings 3,042,352 233,271 3,275,623 Other revenues 328,758 29,500 358,258 Total general revenues and transfers 101,671,455 262,771 101,934,226 Change in net position (6,822,830) 1,134,023 (5,688,807) Netposition-beginning 54,358,557 25,699,958 80,058,515 Netposition-ending $ 47,535,727 $26,833,981 $ 74,369,708 The accompanying notes are an integral part of these financial statements. 18 //i%✓/il%l/!j///�/�J/��/�/// iii/����%�%ijii 1 ✓io�li%���/,i oCALIF0RN' IA � Basic Financial Statements- Fund! t t ent - Furr ! Financial Statements 19 ; 11 ® / & [ | F 0 k N | & ® 20 COUNTY OF BUTTE, CALIFORNIA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2016 Public Behavioral Other Total General Social Services Health Health Road Governmental Governmental Fund Fund Fund Fund Fund Funds Funds ASSETS Cash and investments $ 55,720,857 $ 5,928,608 $ 12,963,991 $ 9,298,305 $ 7,180,264 $ 39,177,628 $130,269,653 Restricted Assets; Cash with fiscal agent 6,598 - - - - 460,100 466,698 Imprest cash 18,655 - 650 1,000 50 2,000 22,355 Due from otherfunds 274,527 15,209 - - 5,460 6,057 301,253 Interest receivable 125,672 17,423 27,431 20,247 10,010 86,529 287,312 Accounts receivable 821,947 2,774,619 180,333 178,601 555,402 - 4,510,902 Due from other governments 8,750,868 6,717,516 2,284,629 9,880,035 72,001 592,781 28,297,830 Prepaid items 204,448 15,476 - - - - 219,924 Deposits with others - - Inventory 34,170 256,224 - 290,394 Loans receivable - - 4,470,520 4,470,520 Total assets 65,957,742 15,468,851 15,457,034 19,378,188 8,079,411 44,795,615 169,136,841 LIABILITIES Due to other funds 21,251 3,818 - - - 270,709 295,778 Accounts payable 3,276,684 573,830 380,822 2,047,020 576,929 521,098 7,376,383 Salaries and benefits payable 3,082,257 1,708,780 406,153 990,085 286,154 230,020 6,703,449 Unearned revenue 617,084 7,990,264 111,187 5,695,496 5,719 - 14,419,750 Deposits payable 268,573 - - - - 268,573 Total liabilities 7,265,849 10,276,692 898,162 8,732,601 868,802 1,021,827 29,063,933 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 420,453 28,570 1,147,842 1,086,428 555,402 - 3,238,695 Total deferred inflows of resources 420,453 28,570 1,147,842 1,086,428 555,402 - 3,238,695 FUND BALANCES Nonspendable 238,618 15,476 - - 256,224 16,287 526,605 Restricted 27,132,083 5,148,113 13,411,030 9,559,159 6,398,983 43,757,501 105,406,869 Committed 7,500,000 - - - - - 7,500,000 Assigned 28,867 28,867 Unassigned 23,371,872 - - - - - 23,371,872 Total fund balances 58,271,440 5,163,589 13,411,030 9,559,159 6,655,207 43,773,788 136,834,213 Total liabilities deferred inflow of resources and fund balances $ 65,957,742 $ 15,468,851 $ 15,457,034 $ 19,378,188 $ 8,079,411 $ 44,795,615 $169,136,841 The accompanying notes are an integral part of these financial statements. 21