County of Nevada, California
Comprehensive Annual Financial Report
For the Fiscal Year Ended
June 30, 2008
Marcia L. Salter, Auditor-Controller
Gentle Giant Monument, Grass Valley
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
Page
Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i-vii
Government Finance Officers Association Certificate of Achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii
County Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
. . . . . . . 2-17
Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Governmental Funds:
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Reconciliation of the Governmental Fund Balances to the Government-Wide
Statement of Net Assets – Governmental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . . . . . . . 22
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Government-Wide Statement of Activities – Governmental
Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Proprietary Funds:
Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-25
Statement of Revenues, Expenses, and Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . 26
Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27-28
Fiduciary Funds:
Statement of Fiduciary Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Statement of Changes in Fiduciary Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
1 Financial Reporting Entity and Summary of Significant Accounting Policies . . . . . . . . . . . . . . 31-40
2 Stewardship, Compliance, and Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-42
3 Detailed Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42-53
4 Employees’ Retirement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53-54
5 Post Employment Benefits Other Than Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54-56
6 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
7 Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57-58
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
Page
Schedule of Funding Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Budgetary Comparison Schedule - Budgetary Basis - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 60-62
Budgetary Comparison Schedule - Budgetary Basis - Road Fund - Major Special Revenue Fund . . . . . . 63
Budgetary Comparison Schedule - Budgetary Basis - Community Development Agency - Major
Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Budgetary Comparison Schedule - Budgetary Basis - Human Services Agency - Major Special
Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Budgetary Comparison Schedule - Budgetary Basis - Health and Welfare Realignment - Major
Special Revenue Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Notes to Required Supplementary Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67-68
Nonmajor Governmental Funds:
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . . . . . . . . 70
Special Revenue Funds:
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71-72
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . 73-74
Budgetary Comparison Schedules - Budgetary Basis:
Fish and Game . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Child Support Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
County-wide Tech Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Recycled Oil Block Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Probation Fire Insurance Admin Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
St/County Property Tax Admin Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Motor Vehicle License . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Public Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Inet Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Nonmajor Human Services Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Community Development Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
District Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Probation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Recorder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Sheriff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Housing Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Special Districts Governed by the Board of Supervisors . . . . . . . . . . . . . . . . . . . . . . . . 93
Department of Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
Page
Nonmajor Governmental Funds (Continued):
Budgetary Comparison Schedules - Budgetary Basis: (Continued)
Housing and Community Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Debt Service Funds:
Combining Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances . . . . . . 97
Budgetary Comparison Schedules - Budgetary Basis:
Government Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Special Assessment Debt with County Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Finance Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Nonmajor Proprietary Funds:
Enterprise Funds
Combining Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Combining Statement of Revenues, Expenses, and Changes in Net Assets . . . . . . . . . . . 102
Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Internal Service Funds:
Combining Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Combining Statement of Revenues, Expenses, and Changes in Net Assets . . . . . . . . . . . . . . . 105
Combining Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106-107
Fiduciary Funds:
Trust Funds:
Combining Statement of Fiduciary Net Assets - Investment Trust Funds . . . . . . . . . . . . . . 108
Combining Statement of Changes in Fiduciary Net Assets - Investment Trust Funds . . . . 109
Agency Funds:
Combining Statement of Assets and Liabilities - Agency Funds . . . . . . . . . . . . . . . . . . . . . 110
Combining Statement of Changes in Assets and Liabilities - Agency Funds . . . . . . . . . . . 111
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2008
TABLE OF CONTENTS
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Net Assets by Component
Last Six Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Changes in Net Assets
Last Six Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113-114
Fund Balances-Governmental Funds
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Changes in Fund Balances-Governmental Funds
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Principal Property Tax Payers
Current Year and Eight Years Ago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Property Tax Levies and Collections
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Ratios of Net Obligation Bonded Debt to Assessed Value and Net General Obligation
Bonded Debt Per Capita
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Legal Debt Margin Information
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Demographic and Economic Indicators
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Labor Force and Employment
Current Year and Nine Years Ago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Full-time Equivalent County Government Employees by Function
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Operating Indicators by Function
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Capital Asset Statistics by Function
Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
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COUNTY OFFICIALS
FOR THE YEAR ENDED JUNE 30, 2008
Supervisor, District 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nate Beason
Supervisor, District 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sue Horne
Supervisor, District 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . John Spencer
Supervisor, District 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wm. Hank Weston
Supervisor, District 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ted Owens
Assessor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dale Flippin
Auditor-Controller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marcia Salter
Clerk-Recorder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gregory Diaz
District Attorney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Clifford Newell
Sheriff-Coroner/Public Administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Keith Royal
Treasurer-Tax Collector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chris Dabis
Agricultural Commissioner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jeff Pylman
Behavioral Health Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Michael Heggarty
Building Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brian Washko
Chief Information Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steve Monaghan
Chief Probation Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Doug Carver
Child Support Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kathy Hrepich
Clerk of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cathy Thompson
Community Development Agency Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steve DeCamp
County Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Robert Shulman
County Executive Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rick Haffey
Environmental Health Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wesley Nicks
Health & Human Services Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jeff Brown
Human Resources Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gayle Satchwell
Librarian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mary Ann Trygg
Planning Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jory Stewart
Public Defender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Donald Lown Jr.
Public Health Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Joseph Iser, M.D.
Public Works Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Douglas Farrell
Sanitation Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mark Miller
Social Services Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Allison Lehman
Nevada County Government
Organization
Elective Offices Appointive Offices
Auditor-Controller
Assessor
Board of Supervisors
County Executive Officer
Airport
Clerk of the Board
County Counsel
Commissions,
Boards &
Committees
Clerk-Recorder
District Attorney
 Clerk-Recorder
 Elections
Sheriff-Coroner
 Animal Care Services
 Corrections
 Court Security
 Operations
Treasurer-Tax
Collector
 Collections
Superintendent of
Schools
Superior Court
 Grand Jury
Community
Development Agency
Health & Human
Services Agency
Ag Commissioner Department of
Social Services
 Ag Services
 Weights & Measures
 Adult Protective Services
 Child Protective Services
 Public Assistance
 Veterans’ Services
Farm Advisor
Building Inspection Behavioral Health
Public Health
 Public Health Officer
Planning
 Code Compliance
 Housing Programs
Environmental Health
Child Support Services
Probation
 Juvenile Hall
 Victim/Witness
Public Works
 Solid Waste
 Wastewater
Human Resources
 Personnel Services
 Risk Management
Information &
General Services
 Information Systems
 GIS
 Cable TV
 Central Services
 Emergency Services
 Facilities Management
 Purchasing
Library
Public Defender
 Roads
 Fleet
 Transit Services
Sanitation
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- 5 -
Current and other
assets 69,487,274 67,896,533 24,338,926 27,208,640 93,826,200 95,105,173 -1.34%
Capital Assets 258,347,801 257,942,703 57,407,075 39,981,773 315,754,876 297,924,476 5.98%
327,835,075 325,839,236 81,746,001 67,190,413 409,581,076 393,029,649 4.21%
Long-term liabilities 25,888,118 24,136,470 53,155,837 45,590,748 79,043,955 69,727,218 13.36%
Other liabilities 7,899,768 7,807,152 3,632,791 3,176,309 11,532,559 10,983,461 5.00%
33,787,886 31,943,622 56,788,628 48,767,057 90,576,514 80,710,679 12.22%
Net Assets:
Invested in capital
assets, net of related
debt 240,377,169 238,955,459 25,611,733 17,773,325 265,988,902 256,728,784 3.61%
Restricted 38,274,175 40,643,025 0 0 38,274,175 40,643,025 -5.83%
Unrestricted 15,395,845 14,297,129 -654,360 650,031 14,741,485 14,947,160 -1.38%
294,047,189 293,895,613 24,957,373 18,423,356 319,004,562 312,318,969 2.14%
- 6 -
Governmental Business-Type
Activities Activities TOTAL Variance
2008 2007 2008 2007 2008 2007
Revenues
Program revenues:
Charges for services 15,891,037 15,375,856 15,086,805 15,922,138 30,977,842 31,297,994 -1.02%
Operating Grants and contributions 68,069,772 60,489,775 1,039,974 475,587 69,109,746 60,965,362 13.36%
Capital Grants and Contributions 0 54,876 75,636 1,380,188 75,636 1,435,064 -94.73%
General Revenues:
Property Taxes 33,565,001 31,516,285 6723 7009 33,571,724 31,523,294 6.50%
Other taxes 7,275,899 7,963,171 2,698,395 2,499,667 9,974,294 10,462,838 -4.67%
Unrestricted interest and investment
earnings
2,441,133 2,412,223 1,251,801 1,167,496 3,692,934 3,579,719 3.16%
Miscellaneous 2,851,196 3,679,684 1,712,677 1,172,322 4,563,873 4,852,006 -5.94%
Total Revenues 130,094,038 121,491,870 21,872,011 22,624,407 151,966,049 144,116,277 5.45%
Expenses:
General Government 13,734,811 12,221,901 13,734,811 12,221,901 12.38%
Public Ways and Facilities 10,455,997 10,077,775 10,455,997 10,077,775 3.75%
Public Protection 52,982,684 46,998,768 52,982,684 46,998,768 12.73%
Health and sanitation 21,056,211 17,680,812 21,056,211 17,680,812 19.09%
Public Assistance 25,413,676 23,173,587 25,413,676 23,173,587 9.67%
Education 3,015,545 2,541,343 3,015,545 2,541,343 18.66%
Recreation 245,653 237,357 245,653 237,357 3.50%
Interest on long-term debt 917,161 832,300 917,161 832,300 10.20%
Eastern Nevada County Solid Waste 127,515 135,640 127,515 135,640 -5.99%
Western Nevada County Solid Waste 7,369,951 6,935,822 7,369,951 6,935,822 6.26%
Transit Services 3,858,023 3,253,773 3,858,023 3,253,773 18.57%
Airport 1,441,091 1,282,831 1,441,091 1,282,831 12.34%
Sanitation District 5,191,420 4,502,075 5,191,420 4,502,075 15.31%
Total Expenses 127,821,738 113,763,843 17,988,000 16,110,141 145,809,738 129,873,984 12.27%
Change in net assets before
transfers
2,272,300 7,728,027 3,884,011 6,514,266 6,156,311 14,242,293 -56.77%
Transfers (660,365) (381,600) 660,365 381,600 0
Change in net assets 1,611,935 7,346,427 4,544,376 6,895,866 6,156,311 14,242,293 -56.77%
Prior Period adjustments -1,460,359 -256,942 1,989,641 434,933 529,282 177,991 197.36%
Net Assets 7/1 293,895,613 286,806,128 18,423,356 11,092,557 312,318,969 297,898,685 4.84%
Net Assets 06/30 294,047,189 293,895,613 24,957,373 18,423,356 319,004,562 312,318,969 2.14%
- 7 -
Charges for services
12%
Operating Grants and
contributions
52%
Capital Grants and
Contributions
0%
General Revenues:
0%
Property Taxes
26%
Other taxes
6%
Unrestricted interest and
investment earnings
2%
Miscellaneous
2%
- 8 -
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Program Revenues
Expenses
(
- 9 -
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
General
Government
Public Ways
and Facilities
Public
Protection
Health and
sanitation
Public
Assistance
Education Recreation Interest on
long-term debt
FY 2007-08
FY 2006-07
- 10 -
General Revenues:
0%
Operating Grants and
contributions
5%
Property Taxes
0%
Miscellaneous
8%
Capital Grants and
Contributions
0%
Other taxes
12%
Unrestricted interest and
investment earnings
6%
Charges for services
69%
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Program Revenues
Expenses
- 11 -
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Eastern Nevada
County Solid Waste
Western Nevada
County Solid Waste
Transit Services Airport Sanitation District
FY 2007-08
FY 2006-07
- 12 -
2008 2007 Variance Change
Total Assets 71,490,510 69,316,634 3.14% 2,173,876
Total Liabilities 14,485,188 12,716,495 13.91% 1,768,693
Fund Balance
Reserved 7,686,557 7,215,240 6.53% 471,317
Unreserved, reported in:
General
Designated 16,073,000 11,596,259 38.61% 4,476,741
Undesignated 2,290,975 3,675,440 -37.67% -1,384,465
Special Revenue Funds
Undesignated 30,954,790 34,113,200 -9.26% -3,158,410
Total Undesignated 33,245,765 37,788,640 -12.02% -4,542,875
Total Fund Balance 57,005,322 56,600,139 0.72% 405,183
Total Liabilities and Fund Balance 71,490,510 69,316,634 3.14% 2,173,876
- 13 -
Increase
FY 2008 Percent FY 2007 Percent (Decrease)
Percentage
of
Revenue Type Amount of Total Amount of Total Amount Change
Taxes and
Assessments 37,998,736 68.20% 36,445,320 67.84% 1,553,416 4.26%
License and Permits 1,109,512 1.99% 1,064,449 1.98% 45,063 4.23%
Fines and
Forfeitures 2,459,742 4.41% 2,029,952 3.78% 429,790 21.17%
Use of Money and
Property 1,352,702 2.43% 1,128,937 2.10% 223,765 19.82%
Intergovernmental 4,521,081 8.11% 3,709,196 6.90% 811,885 21.89%
Charges for Service 6,993,841 12.55% 6,732,794 12.53% 261,047 3.88%
Other Revenues 1,278,075 2.29% 2,612,084 4.86% -1,334,009 -51.07%
Total 55,713,689 100.00% 53,722,732 100.00% 1,990,957 3.71%
- 14 -
Increase
FY 2008 Percent FY 2007 Percent (Decrease) Percentage of
Expenditures by Function Amount of Total Amount of Total Amount Change
General government 11,931,463 22.28% 11,479,993 23.31% 451,470 3.93%
Public protection 40,281,940 75.23% 36,500,979 74.10% 3,780,961 10.36%
Public Assistance 326,602 0.61% 291,213 0.59% 35,389 12.15%
Education 109,691 0.20% 94,378 0.19% 15,313 16.23%
Capital outlay 877,178 1.64% 873,008 1.77% 4,170 0.48%
Debt Service 15,271 0.03% 18,477 0.04% -3,206 -17.35%
Total 53,542,145 100.00% 49,258,048 100.00% 4,284,097 8.70%
- 15 -
􀂃􈌠
􀂃􈌠
Land and Easements 101,596,798 101,579,438 3,593,251 3,593,251 105,190,049 105,172,689 0.02%
Infrastructure (road sys) 99,413,403 100,965,723 0 0 99,413,403 100,965,723 -1.54%
Infrastructure 17,559,784 17,266,471 12,237,413 11,089,698 29,797,197 28,356,169 5.08%
Structures and Improvements 32,846,013 32,758,004 1,829,659 1,860,916 34,675,672 34,618,920 0.16%
Construction in Progress 1,721,146 1,484,577 38,252,789 22,289,452 39,973,935 23,774,029 68.14%
Equipment 5,210,657 3,888,489 1,493,963 1,148,456 6,704,620 5,036,945 33.11%
- 16 -
Certificate of Participation 13,850,000 14,730,000 7,789,519 8,216,119 21,639,519 22,946,119 -5.7%
Accrued Claims Liability 841,191 689,198 841,191 689,198 22.1%
Loans 3,752,254 3,893,757 31,623,342 23,373,698 35,375,596 27,267,455 29.7%
Special Assessment Debt 320,000 329,908 172,000 234,000 492,000 563,908 -12.8%
Landfill Post Closure 13,251,906 13,514,659 13,251,906 13,514,659 -1.9%
Capital Leases 48,378 33,577 48,378 33,577 44.1%
Compensated Absences 5,136,295 4,460,030 319,070 252,272 5,455,365 4,712,302 15.8%
Net OPEB Obligation 1,940,000 0 0 0 1,940,000 0 100.0%
Total
- 17 -
Expenditures
Capital
Improvements
Preservation
Maintenance
General
Maintenance Total Cost
Planned 1,809,000 2,338,068 243,495 4,390,563
Actual 1,335,344 3,407,548 2,726,774 7,469,666
Difference -473,656 1,069,480 2,483,279 3,079,103
STATEMENT OF NET ASSETS
JUNE 30, 2008
Cash and investments $ 41,465,234 $ 2 2,501,862 $ 63,967,096
Restricted cash and investments 2,138,574 1 ,031,887 3 ,170,461
Accounts receivable (net of allowance) 1,131,092 7 19,812 1,850,904
Taxes receivable 1,243,625 - 1,243,625
Due from other governmental agencies 9,784,631 1 72,440 9,957,071
Due from other agencies 8,902,179 - 8,902,179
Internal balances 149,237 ( 149,237) -
Inventory 204,729 6 2,162 266,891
Deposits 35,000 - 35,000
Prepaid costs 18,911 - 18,911
Loans receivable 4,414,062 - 4,414,062
Capital assets:
Non depreciable 202,731,347 4 1,846,040 244,577,387
Depreciable, net 55,616,454 1 5,561,035 71,177,489
Total capital assets 258,347,801 5 7,407,075 315,754,876
327,835,075 8 1,746,001 409,581,076
Accounts payable 3,643,600 1 ,363,499 5 ,007,099
Accrued salaries and benefits 2,908,698 2 09,803 3,118,501
Accrued interest payable 202,931 3 03,163 5 06,094
Deposits payable 244,096 3 5,552 279,648
Unearned revenue 900,443 1 ,720,774 2 ,621,217
Long-term liabilities:
Due within one year 7,066,803 4 ,783,734 11,850,537
Due in more than one year 18,821,315 4 8,372,103 67,193,418
33,787,886 5 6,788,628 90,576,514
Invested in capital assets, net of related debt 240,377,169 2 5,611,733 265,988,902
Restricted for:
Debt service 2,271,913 - 2,271,913
Grants, taxes, and fees 36,002,262 - 36,002,262
Unrestricted 15,395,845 ( 654,360) 14,741,485
$ 294,047,189 $ 2 4,957,373 $ 319,004,562
The notes to the basic financial statments are an integral part of this statement.
-18-
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008
Governmental activities:
General government $ 1 3,734,811 $ 5,999,606 $ 1,769,094 $ -
Public ways and facilities 1 0,455,997 2,730,449 5,667,356 -
Public protection 5 2,982,684 5,240,057 16,344,042 -
Health and sanitation 2 1,056,211 1,759,838 17,610,432 -
Public assistance 2 5,413,676 59,647 22,056,481 -
Education 3 ,015,545 99,526 66,409 -
Recreation 2 45,653 1,914 158,968 -
Interest on long-term debt 9 17,161 - - -
1 27,821,738 15,891,037 63,672,782 -
Business-type activities:
Eastern Nevada County Solid Waste 1 27,515 112,302 - -
Western Nevada County Solid Waste 7 ,369,951 7,711,070 153,543 -
Transit Services 3 ,858,023 519,658 874,324 -
Airport 1 ,441,091 773,809 12,107 75,636
Sanitation District 5 ,191,420 5,969,966 - -
1 7,988,000 15,086,805 1,039,974 7 5,636
$ 145,809,738 $ 30,977,842 $ 64,712,756 $ 75,636
Taxes:
Property taxes
Sales and use taxes
Property transfer taxes
Transient occupancy taxes
Timber yield taxes
Aircraft taxes
Franchise taxes
Transportation taxes
Other taxes
Grants and contributions - unrestricted
Tobacco settlement
Interest and investment earnings
Miscellaneous
Gain (loss) on sale of capital assets
Prior period adjustment
The notes to the basic financial statments are an integral part of this statement.
-19-
$ ( 5,966,111) $ - $ ( 5,966,111)
( 2,058,192) - ( 2,058,192)
( 31,398,585) - ( 31,398,585)
( 1,685,941) - ( 1,685,941)
( 3,297,548) - ( 3,297,548)
( 2,849,610) - ( 2,849,610)
( 84,771) - ( 84,771)
( 917,161) - ( 917,161)
( 48,257,919) - ( 48,257,919)
- ( 15,213) ( 15,213)
- 4 94,662 4 94,662
- ( 2,464,041) ( 2,464,041)
- ( 579,539) ( 579,539)
- 7 78,546 7 78,546
- ( 1,785,585) ( 1,785,585)
( 48,257,919) ( 1,785,585) ( 50,043,504)
3 3,565,001 6 ,723 3 3,571,724
5 ,065,713 - 5 ,065,713
6 73,351 - 6 73,351
2 85,205 1 7,920 3 03,125
5 2,232 - 5 2,232
8 2,318 4 8,611 1 30,929
1 ,013,065 - 1 ,013,065
6 2,727 2 ,631,864 2 ,694,591
4 1,288 - 4 1,288
4 ,396,990 - 4 ,396,990
1 ,017,403 - 1 ,017,403
2 ,441,133 1 ,251,801 3 ,692,934
1 ,032,807 1 ,712,677 2 ,745,484
8 00,986 - 8 00,986
( 660,365) 6 60,365 -
4 9,869,854 6 ,329,961 5 6,199,815
1 ,611,935 4 ,544,376 6 ,156,311
2 93,895,613 1 8,423,356 3 12,318,969
( 1,460,359) 1 ,989,641 5 29,282
2 92,435,254 2 0,412,997 3 12,848,251
$ 2 94,047,189 $ 2 4,957,373 $ 3 19,004,562
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2008
Cash and investments $ 8,222,206 $ 4,856,994 $ 369,875 $ 2 80
Restricted cash and investments - - - -
Accounts receivable (net of allowance) 7 58,742 1 ,919 1 63,719 5 9,218
Due from other governmental agencies 1 ,514,425 1 ,133,413 7 6,571 3 ,144,022
Due from other agencies 8 ,902,179 - - -
Taxes receivable 9 62,625 - - -
Due from other funds 2,411,448 2 51,672 3 04,999 1 ,551,996
Inventory - 1 32,713 - -
Advances to other funds 9 7,000 - - -
Loans receivable - - - -
$ 22,868,625 $ 6,376,711 $ 915,164 $ 4,755,516
LIABILITIES
Accounts payable $ 1,175,381 $ 464,225 $ 81,680 $ 922,416
Accrued salaries and benefits 1 ,746,730 1 84,695 1 99,489 5 36,958
Deposits payable - 3 1,754 1 68,179 4 4,163
Due to other funds 4 05,336 1 27,204 5 4,135 4 47,328
Deferred revenue 8 10,031 1 87,764 8 6,017 3 22,572
Unearned revenue - 1 10,227 2 56,182 3 03,800
Advance from other funds - - - -
4,137,478 1,105,869 8 45,682 2,577,237
FUND BALANCES
Reserved for:
Debt service - - - -
Encumbrances 270,172 3 37,761 - 1 23,500
Inventory - 1 32,713 - -
Advances 9 7,000 - - -
Loans receivable - - - -
Unreserved, reported in:
General
Designated 16,073,000 - - -
Undesignated 2,290,975 - - -
Special revenue funds
Undesignated - 4 ,800,368 6 9,482 2 ,054,779
18,731,147 5,270,842 69,482 2,178,279
$ 22,868,625 $ 6,376,711 $ 915,164 $ 4,755,516
The notes to the basic financial statments are an integral part of this statement.
-20-
$ 6,179,452 $ 18,433,860 $ 38,062,667
- 2,138,574 2 ,138,574
- 134,805 1 ,118,403
1 ,182,380 2,733,820 9 ,784,631
- - 8 ,902,179
- 281,000 1 ,243,625
2 1,211 835,591 5 ,376,917
- - 1 32,713
- 219,739 3 16,739
- 4,414,062 4 ,414,062
$ 7,383,043 $ 29,191,451 $ 71,490,510
$ - $ 593,098 $ 3,236,800
- 205,791 2 ,873,663
- - 2 44,096
9 35,207 3,566,518 5 ,535,728
- 298,569 1 ,704,953
- - 6 70,209
- 219,739 2 19,739
9 35,207 4,883,715 14,485,188
- 2,271,913 2 ,271,913
- 39,436 7 70,869
- - 1 32,713
- - 9 7,000
- 4,414,062 4 ,414,062
- - 1 6,073,000
- - 2 ,290,975
6 ,447,836 17,582,325 3 0,954,790
6 ,447,836 24,307,736 57,005,322
$ 7,383,043 $ 29,191,451 $ 71,490,510
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCES
TO THE GOVERNMENT-WIDE STATEMENT OF
JUNE 30, 2008
$ 5 7,005,322
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the governmental funds balance sheets. 2 56,917,256
Other long term assets are not available to pay for current period expenditures and therefore, are
not reported in the funds or are reported as deferred in the governmental funds.
Deferred revenue 1 ,704,953
Interest payable on long-term debt does not require the use of current financial resources and,
therefore, is not accrued as a liability in the governmental funds balance sheets. ( 202,931)
Certain liabilities are not due and payable in the current period and therefore, are not reported in
the governmental funds.
Bonds payable ( 320,000)
Certificates of participation ( 13,850,000)
Loans payable ( 3,752,253)
Capital leases payable ( 32,099)
Compensated absences ( 5,058,861)
Net OPEB obligation ( 1,940,000)
Internal service funds are used by management to charge the cost of certain activities, such as
insurance and equipment maintenance and operations, to individual funds. The assets and
liabilities of the internal service funds must be added to the statement of net assets. 3 ,575,802
$ 294,047,189
NET ASSETS - GOVERNMENTAL ACTIVITIES
The notes to the basic financial statments are an integral part of this statement.
-21-
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Taxes and assessments $ 37,998,736 $ 6 2,727 $ 17,920 $ -
Licenses and permits 1 ,109,512 2 8,772 1 ,670,201 5 88
Fines and forfeitures 2 ,459,742 - 5 35 6 72
Use of money and property 1 ,352,702 2 02,362 5 1,251 ( 25,908)
Intergovernmental 4 ,521,081 5 ,865,441 8 57,551 2 9,465,875
Charges for services 6 ,993,841 4 74,351 2 ,082,826 4 75,699
Other revenues 1,278,075 8 7,412 1 98,019 1 30,420
55,713,689 6,721,065 4,878,303 30,047,346
Current:
General government 1 1,931,463 - - -
Public ways and facilities - 8 ,834,055 - -
Public protection 40,281,940 - 5 ,050,252 -
Health and sanitation - - 2 ,227,369 1 5,565,235
Public assistance 3 26,602 - - 2 2,063,382
Education 1 09,691 - - -
Recreation - - - -
Debt service:
Principal 1 3,120 - - -
Interest and other charges 2 ,151 - - -
Capital outlay 8 77,178 3 ,655,806 - -
53,542,145 12,489,861 7,277,621 37,628,617
2,171,544 ( 5,768,796) ( 2,399,318) ( 7,581,271)
Transfers in 8,177,686 4 ,438,921 2 ,443,740 9 ,100,757
Transfers out ( 8,408,933) - ( 262,423) ( 3,883)
Issuance of debt 3 2,750 - - -
Sale of capital assets 8 00,986 - - -
602,489 4,438,921 2,181,317 9,096,874
2,774,033 ( 1,329,875) ( 218,001) 1,515,603
15,957,114 6 ,600,717 2 87,483 6 62,676
$ 18,731,147 $ 5,270,842 $ 6 9,482 $ 2,178,279
The notes to the basic financial statments are an integral part of this statement.
-22-
$ - $ 1 ,696,220 $ 39,775,603
- 1 1,224 2,820,297
- 6 21,151 3,082,100
8 00 7 18,502 2,299,709
6 ,822,089 1 9,801,195 67,333,232
- 9 84,588 11,011,305
- 1 ,055,405 2,749,331
6 ,822,889 2 4,888,285 129,071,577
- 7 29,911 1 2,661,374
- 3 23,905 9 ,157,960
- 6 ,114,905 5 1,447,097
- 2 ,934,613 2 0,727,217
- 2 ,761,107 2 5,151,091
- 2 ,778,678 2 ,888,369
- 2 45,653 2 45,653
- 1 ,031,412 1 ,044,532
- 8 64,588 8 66,739
- 8 8,267 4 ,621,251
- 1 7,873,039 128,811,283
6 ,822,889 7 ,015,246 260,294
1 27,268 5 ,105,931 2 9,394,303
( 8,296,826) ( 13,111,085) ( 30,083,150)
- - 3 2,750
- - 8 00,986
( 8,169,558) ( 8,005,154) 144,889
( 1,346,669) ( 989,908) 405,183
7 ,794,505 2 5,297,644 5 6,600,139
$ 6,447,836 $ 2 4,307,736 $ 57,005,322
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
FOR THE YEAR ENDED JUNE 30, 2008
$ 4 05,183
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities
the cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense.
Expenditures for capital outlay 4 ,621,251
Depreciation expense (2,138,567)
Various adjustments affecting capital assets (including sales, trade-ins, and developer contributions) (140,889)
Governmental funds only report the disposal of assets to the extent proceeds are received from the
sale. In the statement of activities, a gain or loss is reported for each disposal. This is the cost of
the capital assets disposed. There were no significant proceeds. (694,037)
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases
long-term liabilities in the statement of net assets. Repayment of principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in the statement of net assets.
Principal retirements 1 ,044,532
Proceeds from issuance of debt (32,750)
Some revenues reported in the statement of activities will not be collected for several months after
the County's year end and do not provide current financial resources and therefore are not reported as
revenues in the governmental funds.
Change in accounts receivable (930,866)
Change in deferred revenue 1 ,704,953
Some expenses reported in the statement of activities, do not require the use of current financial
resources and therefore are not reported as expenditures in the governmental funds.
Change in net OPEB obligation (1,940,000)
Change in compensated absences payable (662,185)
Change in accrued interest on long-term debt (50,422)
Internal service funds are used by management to charge the cost of certain activities, such as insurance
and equipment maintenance and operations, to individual funds. The net revenue (expense) of certain
internal services funds is reported with governmental activities. 4 25,732
$ 1,611,935
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES - GOVERNMENTAL ACTIVITIES
The notes to the basic financial statments are an integral part of this statement.
-23-
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2008
Current Assets
Cash and investments $ 12,461,465 $ 128,339 $ 7,953,496 $ 1,958,562
Restricted cash and investments 1,006,887 - 25,000 -
Accounts receivable (net of allowance) 455,477 97,409 8,324 158,602
Due from other governmental agencies 35,265 - - 137,175
Due from other funds 37,426 33,504 1,519,772 6 ,163
Prepaid costs - - - -
Inventory - 60,439 - 1,723
Deposits - - - -
13,996,520 3 19,691 9,506,592 2,262,225
Noncurrent Assets
Capital assets:
Non-depreciable 765,867 1,887,633 39,166,131 2 6,409
Depreciable, net 1,416,859 2,910,108 10,541,023 6 93,045
2,182,726 4,797,741 49,707,154 719,454
16,179,246 5,117,432 59,213,746 2,981,679
Current Liabilities
Accounts payable 357,961 84,821 591,298 329,419
Accrued salaries and benefits 66,811 9,013 76,783 57,196
Accrued interest payable 33,619 57,551 211,993 -
Deposits payable 3 3,552 2 ,000 - -
Due to other funds 136,021 5 40 1,525,949 6 3,636
Unearned revenue - 24,877 - 1,695,897
Compensated absences payable 57,802 22,630 166,835 71,803
Capital leases payable - - - -
Certificates of participation 441,600 - - -
Bonds payable - - 72,000 -
Loans payable - 45,351 1,443,630 -
Accrued claims payable - - - -
Closure/postclosure costs 2,459,083 - - 3,000
3 ,586,449 2 46,783 4 ,088,488 2 ,220,951
Noncurrent Liabilities
Advances from other funds - 93,000 4,000 -
Capital leases payable - - - -
Certificates of participation 7 ,347,919 - - -
Bonds payable - - 100,000 -
Loans payable - 246,050 29,888,311 -
Closure/postclosure costs 1 0,678,754 - - 1 11,069
1 8,026,673 3 39,050 2 9,992,311 1 11,069
21,613,122 5 85,833 34,080,799 2,332,020
The notes to the basic financial statments are an integral part of this statement.
-24-
$ 22,501,862 $ 3,402,567
1 ,031,887 -
7 19,812 12,689
1 72,440 -
1 ,596,865 488,205
- 18,911
6 2,162 72,016
- 35,000
26,085,028 4,029,388
4 1,846,040 -
1 5,561,035 1,430,545
57,407,075 1,430,545
83,492,103 5,459,933
1 ,363,499 406,800
2 09,803 35,035
3 03,163 -
3 5,552 -
1 ,726,146 200,113
1 ,720,774 230,234
3 19,070 77,435
- 5,281
4 41,600 -
7 2,000 -
1 ,488,981 -
- 841,191
2 ,462,083 -
1 0,142,671 1,796,089
9 7,000 -
- 10,998
7 ,347,919 -
1 00,000 -
3 0,134,361 -
1 0,789,823 -
4 8,469,103 1 0,998
58,611,774 1,807,087
Continued (Page 1 of 2)
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2008
Invested in capital assets, net of related debt 2 ,182,726 4,506,340 18,203,213 719,454
Unrestricted ( 7,616,602) 2 5,259 6 ,929,734 ( 69,795)
$ (5,433,876) $ 4,531,599 $ 25,132,947 $ 649,659
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
The notes to the basic financial statments are an integral part of this statement.
-25-
25,611,733 1,414,266
( 731,404) 2,238,580
24,880,329 $ 3,652,846
7 7,044
$ 24,957,373
Continued (Page 2 of 2)
STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Charges for services $ 7,711,070 $ 1 8,855 $ 5,969,966 $ 631,960
Fuel sales - 754,954 - -
7 ,711,070 7 73,809 5,969,966 631,960
Salaries and benefits 1 ,837,017 2 56,314 2 ,074,616 1 ,562,714
Services and supplies 4 ,207,540 8 09,552 1 ,366,157 2 ,036,352
Benefit and claim expense 1 0,328 - - 6 ,477
Other charges 2 01,008 3 8,730 3 04,789 8 4,736
Expenditure transfers 7 6,147 3 ,933 1 55,137 5 6,412
Closure/post closure expense 3 45,396 - - 2 ,999
Depreciation 1 69,960 2 97,650 6 57,767 2 14,039
6 ,847,396 1,406,179 4,558,466 3,963,729
8 63,674 ( 632,370) 1,411,500 ( 3,331,769)
Taxes and assessments - 7 3,253 - 2 ,631,865
Forfeitures and penalties - - - -
Intergovernmental revenues 1 53,543 8 7,743 - 8 74,324
Interest income 5 84,963 6 ,447 6 08,435 5 1,956
Other revenues 3 4,905 1 92,675 1 ,471,315 2 ,077
Interest expense ( 492,503) ( 34,331) ( 38,570) 3 ,332
Amortization ( 25,590) - - -
Impairment loss - - ( 584,122) -
Gain (loss) on disposition of capital assets 6 ,930 - 4 ,775 -
2 62,248 325,787 1,461,833 3,563,554
1 ,125,922 ( 306,583) 2,873,333 231,785
Capital contribution - - - -
Transfers in 1 6,246 2 9,908 6 14,211 -
Transfers out - - - -
1 ,142,168 ( 276,675) 3 ,487,544 2 31,785
( 6,576,044) 4,808,274 19,655,762 417,874
Prior period adjustment - - 1,989,641 -
( 6,576,044) 4,808,274 21,645,403 417,874
$ (5,433,876) $ 4,531,599 $ 2 5,132,947 $ 649,659
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.
The notes to the basic financial statments are an integral part of this statement.
-26-
$ 1 4,331,851 $ 7,248,280
7 54,954 -
1 5,086,805 7,248,280
5 ,730,661 9 73,881
8 ,419,601 4 ,515,100
1 6,805 1 ,073,806
6 29,263 6 8,023
2 91,629 1 75,836
3 48,395 -
1 ,339,416 4 23,386
1 6,775,770 7,230,032
( 1,688,965) 18,248
2 ,705,118 -
- 1 0,953
1 ,115,610 -
1 ,251,801 1 41,425
1 ,700,972 1 0,617
( 562,072) ( 1,698)
( 25,590) -
( 584,122) -
1 1,705 3 6,370
5 ,613,422 197,667
3 ,924,457 215,915
- 1 40,889
6 60,365 4 4,728
- ( 16,246)
4 ,584,822 3 85,286
3 ,267,560
-
3 ,267,560
$ 3,652,846
( 40,446)
$ 4 ,544,376
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Receipts from customers $ 7,970,566 $ 766,709 $ 5,961,715 $ 526,664
Payments to suppliers (5,067,048) ( 837,665) ( 3,511,696) ( 1,925,877)
Payments to employees (1,807,325) ( 244,066) ( 2,037,022) ( 1,547,386)
1,096,193 ( 315,022) 412,997 ( 2,946,599)
Grants and other receipts 181,103 3 64,486 1 ,671,137 5 ,021,990
Transfers from other funds 16,246 2 9,908 4 0,873,221 -
Transfers to other funds - - ( 40,548,708) -
Interfund loans received 78,006 - 5 18,549 3 ,327
Interfund loans made - ( 29,072) ( 384,620) ( 8,393)
Interfund loans repaid - ( 939) ( 1,280,508) ( 35,022)
Interfund loan repayments received 6,539 - 1 ,306,859 -
281,894 364,383 2,155,930 4,981,902
Acquisition of capital assets ( 518,147) ( 7,102) ( 16,422,278) ( 463,937)
Proceeds from sale of capital assets - - - -
Proceeds from issuance of debt - - 1 7,801,308 -
Principal paid on capital debt ( 490,000) ( 42,957) ( 9,570,707) -
Interest paid on capital debt ( 421,074) ( 27,675) ( 204,209) -
(1,429,221) ( 77,734) ( 8,395,886) ( 463,937)
Interest and dividends 584,963 6 ,447 6 08,437 5 1,956
584,963 6,447 608,437 51,956
533,829 ( 21,926) ( 5,218,522) 1,623,322
12,934,523 1 50,265 13,197,018 335,240
$ 13,468,352 $ 128,339 $ 7,978,496 $ 1,958,562
The notes to the basic financial statments are an integral part of this statement.
-27-
$ 15,225,654 $ 7,225,603
( 11,342,286) ( 5,462,316)
(5,635,799) ( 953,588)
(1,752,431) 8 09,699
7,238,716 2 1,570
40,919,375 4 4,728
( 40,548,708) ( 16,246)
599,882 2 5,667
( 422,085) ( 161,345)
(1,316,469) ( 190,453)
1,313,398 1 92,743
7,784,109 ( 83,336)
( 17,411,464) ( 507,196)
- 4 3,369
17,801,308 -
( 10,103,664) ( 4,830)
( 652,958) ( 1,698)
(10,366,778) ( 470,355)
1,251,803 1 41,425
1,251,803 1 41,425
(3,083,297) 3 97,433
26,617,046 3,005,134
$ 23,533,749 $ 3,402,567
Continued (Page 1 of 2)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Operating income (loss) $ 8 63,674 $ ( 632,370) $ 1,411,500 $ ( 3,331,769)
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation 1 69,960 2 97,650 6 57,767 2 14,039
Decrease (increase) in:
Accounts receivable 2 58,859 ( 17,209) ( 8,251) ( 105,296)
Deposits - - - -
Prepaid costs - - - -
Inventory - ( 1,594) - 4 ,534
Increase (decrease) in:
Accounts payable 3 9,123 1 6,144 ( 1,685,613) 2 53,566
Accrued salaries and benefits 1 0,178 8 54 9 ,731 7 ,301
Deposits payable 6 37 - - -
Unearned revenue - 1 0,109 - -
Compensated absences payable 1 9,514 1 1,394 2 7,863 8 ,027
Claims payable - - - -
Closure/post closure ( 265,752) - - 2 ,999
$ 1,096,193 $ (315,022) $ 412,997 $ (2,946,599)
Capital asset impairment $ - $ - $ ( 584,122) $ -
Debt abatement - - 614,211 -
Contribution of capital assets from governmental activities - - - -
The notes to the basic financial statments are an integral part of this statement.
-28-
$ ( 1,688,965) $ 1 8,248
1 ,339,416 4 23,386
1 28,103 ( 10,306)
- 6 ,310
- 7 9,170
2 ,940 -
( 1,376,780) 1 39,286
2 8,064 6 ,212
6 37 -
1 0,109 1 5,023
6 6,798 ( 19,623)
- 1 51,993
( 262,753) -
$ ( 1,752,431) $ 809,699
$ ( 584,122) $ -
6 14,211 -
- 140,889
Continued (Page 2 of 2)
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2008
Cash and investments $ 6 4,700,923 $ 2,052,327
Restricted cash and investments - 323,016
Accounts receivable 5 19,800 -
Taxes receivable - 11,018,559
6 5,220,723 13,393,902
Accounts payable 1 37,370 -
Due to other agencies - 8,902,179
Agency obligations - 4,491,723
1 37,370 13,393,902
Net assets held in trust for investment pool participants $ 6 5,083,353 $ -
The notes to the basic financial statments are an integral part of this statement.
-29-
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Contributions:
Contributions to investment pool $ 3 84,619,561
Net investment income:
Interest income 3 ,136,001
Net investment income 3 ,136,001
3 87,755,562
Distributions from investment pool 3 88,330,886
3 88,330,886
( 575,324)
6 5,658,677
$ 65,083,353
The notes to the basic financial statments are an integral part of this statement.
-30-
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-31-
The County operates under an Administrator-Board of Supervisors form of government and provides various services on
a county wide basis including law and justice, education, detention, social, health, fire protection, road construction, road
maintenance, transportation, park and recreation facilities, elections and records, communications, planning, zoning and
tax collection.
The accounting methods and procedures adopted by the County conform to generally accepted accounting principles as
applied to governmental entities. These financial statements present the government and its component units, entities
for which the government is considered to be financially accountable under the criteria set by Governmental Accounting
Standards Board (GASB) Statement No. 14.
The governmental reporting entity consists of the County (Primary Government) and its component units. Component
units are legally separate organizations for which the Board of Supervisors is financially accountable or other organizations
whose component units nature and significant relationship with the County are such that exclusion would cause the
County’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of
a voting majority of the component unit’s board, and (i) either the County’s ability to impose its will on the organization
or (ii) there is potential for the organization to provide a financial benefit to or impose a financial burden on the County.
Reporting for component units on the County’s financial statements can be blended or discretely presented. Blended
component units are, although legally separate entities, in substance part of the County’s operations and, therefore, data
from these units are combined with data of the primary government. Discretely presented component units, on the other
hand, would be reported in a separate column in the government-wide financial statements to emphasize it is legally
separate from the government.
For financial reporting purposes, the County’s basic financial statements include all financial activities that are controlled
by or are dependent upon actions taken by the County’s Board. The financial statements of the individual component
units may be obtained by writing to the County of Nevada, Auditor-Controller’s Office, 950 Maidu Avenue, Nevada City,
CA 95959.
The blended component units’ governing bodies are substantively the same as the governing body of the primary
government. Component units that are blended into the reporting activity types of the County’s report are presented
below:
Special Revenue Funds:
Nevada County Housing Authority
Special Districts Governed by the Board of Supervisors
Debt Service Funds:
Special Assessment Debt with County Commitment
Nevada County Finance Authority
Enterprise Funds:
Sanitation District
The statement of net assets and statement of activities display information on all of the nonfiduciary activities of the
County, and its blended component units. Eliminations have been made to minimize the double counting of internal
activities. These statements distinguish between the governmental and business-type activities of the County.
Governmental activities, which are normally supported by taxes and inter-governmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees charged to external parties.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-32-
The statement of activities presents a comparison between direct expenses and program revenues for each different
identifiable activity of the County’s business-type activities and each function of the County’s governmental activities.
Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable
to a particular function. Certain indirect costs, which cannot be identified and broken down, are included in the program
expense reported for individual functions and activities. Program revenues include (1) charges paid by the recipients of
goods and services offered by the program, (2) operating grants and contributions, and (3) capital grants and
contributions. Taxes and other items not properly included among program revenues are presented instead as general
revenues.
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate
accounting entities. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its
assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories:
governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary
categories. A fund is considered major if it is the primary operating fund of the County or meets the following criteria:
• Total assets, liabilities, revenues or expenditures/expenses of that individual governmental or enterprise fund
are at least 10 percent of the corresponding total for all funds of that category or type; and
• Total assets, liabilities, revenues or expenditures/expenses of the individual governmental fund or enterprise
fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.
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 Road Fund is a special revenue fund used to account for the revenues and expenditures for streets and
road expansion.
• The Community Development Agency Fund is a special revenue fund used to account for the operation of
community development programs.
• The Human Services Agency Fund is a special revenue fund used to account for revenues and expenditures
for human service programs.
• The Health and Welfare Realignment Fund is a special revenue fund used to account for revenues and
expenditures for public and mental health and social services programs.
The County reports the following major proprietary funds:
• The Western Nevada County Solid Waste Fund is an enterprise fund used to account for activity related to
providing customers with solid waste management and billing for services provided by the County.
• The Airport Fund is an enterprise fund used to account for activity related to the County Airport and billing for
services provided by the County.
• The Sanitation District Fund is an enterprise fund used to account for activity related to providing customers with
sanitation management and billing for services provided by the County.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-33-
The County reports the following additional fund types:
• Internal Service Funds account for the County’s fleet maintenance and self insurance programs which provide
services to other departments on a cost reimbursement basis.
• The Investment Trust Funds account for the assets of legally separate entities that deposit cash with the County
Treasurer. The assets of these funds are held in trust for other agencies and are part of the County’s external
pool. The external investment pool is made up of five separate funds; Special Districts governed by Local
Boards, School Districts, School Districts Debt Service, Courts and Jury/Witness and Local Transportation
Authority. These funds account for assets, primarily cash and investments in the County’s investment pool,
owned by legally separate entities such as school and community colleges, special districts governed by local
boards, regional boards and authorities, and pass through funds for tax collections for cities. The County is
obligated to disburse monies from these funds on demand.
• Agency Funds account for the receipt and disbursement of various taxes, deposits, deductions, and property
collected by the County, acting in the capacity of an agent for distribution to other governmental units or other
organizations. The agency funds maintained by the County include two separate components.
Accrued Trust Funds - Accounts for property tax receipts awaiting apportionment to other local
governmental agencies and investment earnings awaiting apportionment to other local government
agencies.
County Departmental Agency - Accounts for all assets under the control of County departments which are
held in a fiduciary capacity.
The government-wide, proprietary funds and fiduciary funds financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. However, because agency funds only report assets
and liabilities, they do not have a measurement focus. Revenues are recorded when earned and expenses are recorded
at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in
which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property
and sales tax, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the
fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take
place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility
requirements have been satisfied.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis
of accounting. Under this method, revenues are recognized when measurable and available. Revenues are considered
to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current
period. The County considers revenues reported in the governmental funds to be available if they are collected within
sixty days after the end of the current fiscal year. Expenditures are generally recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures as well as expenditures related to claims and judgments
are recorded only when payment is due. Governmental capital assets acquisitions are reported as expenditures in the
various functions of the governmental funds. Proceeds of governmental long-term debt and acquisitions under capital
leases are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, grants, entitlements, special assessments and investment earnings
associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues in the current fiscal period when they meet the measurable and available criteria. Fines, licenses and permits,
and charges for services are considered to be measurable and available only when the County receives cash.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-34-
For its business-type activities and enterprise funds, the County has elected, under Governmental Accounting Standards
Board (GASB) Statement No. 20, “Accounting and Financial Reporting for Proprietary Funds and Other Governmental
Entities That Use Proprietary Fund Accounting”, to apply all applicable pronouncements as well as any applicable
pronouncements of the Financial Accounting Standards Board, the Accounting Principles Board or any Accounting
Research Bulletins issued on or before November 30, 1989, unless those pronouncements conflict with or contradict
GASB pronouncements. The County has elected not to follow subsequent private sector guidance. The GASB
periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards which,
along with subsequent GASB pronouncements (Statements and Interpretations), constitutes accounting principles
generally accepted in the United States of America (GAAP) for government units.
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 operations. The principal operating revenues of the enterprise and internal service funds are
charges to customers for sales and services. Operating expenses for enterprise and internal service 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.
For purposes of the accompanying statement of cash flows, the County considers all highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents. All cash and investments, except cash with
fiscal agent, of the proprietary fund types are pooled with the County’s pooled cash and investments.
The County sponsors an investment pool that is managed by the County Treasurer. The Treasurer invests on behalf of
most funds of the County and external participants in accordance with the California State Government Code and the
County’s investment policy. State statutes authorize the County to invest its cash surplus in obligations of the U.S.
Treasury, agencies and instrumentalities, corporate bonds, medium term notes, bankers’ acceptances, certificates of
deposit, commercial paper, repurchase agreements, and the State of California Local Agency Investment Fund
Investment transactions are recorded on the trade date. Investments are reported at fair value which is determined using
selected bases annually. The fair value represents the amount the County could reasonably expect to receive for an
investment in a current sale between a willing buyer and seller. Short term investments are reported at cost, which
approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales
price at current exchange rates. Cash deposits are reported at carrying amount which reasonably estimates fair value.
Managed funds not listed on an established market are reported at the estimated fair value as determined by the
respective fund managers based on quoted sales prices of the underlying securities.
Participant’s equity in the investment pool is determined by the dollar amount of participant deposits, adjusted for
withdrawals and distributed investment income. Investment income is determined on an amortized cost basis. Amortized
premiums and accreted discounts, accrued interest, and realized gains and losses, net of expenses, are apportioned to
pool participants each quarter. This method differs from the fair value method used to value investments in these financial
statements, as unrealized gains or losses are not apportioned to pool participants. During the fiscal year ended June 30,
2008, the County Treasurer has not entered into any legally binding guarantees to support the value of participant equity
in the investment pool.
Income from pooled investments is allocated to the individual funds or external participants based on the fund or
participant’s average daily cash balance at quarter end in relation to the total pool investments. Interest income earned
in agency funds where there are no interest earnings requirements are assigned to the General Fund per County Policy.
Income from non-pooled investments is recorded based on the specific investments held by the fund. The interest income
is recorded in the fund that earned the interest.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-35-
In the government-wide and proprietary fund financial statements, receivables consist of all revenues earned at year-end
and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic
aging of accounts receivable. Major receivable balances for the governmental activities include taxes, grants, and interest.
Business-type activities report user fees and interest earnings as their major receivables.
In the fund financial statements, material receivables in governmental funds include revenue accruals such as taxes,
grants, interest, and other similar intergovernmental revenues since they are usually both measurable and available.
Nonexchange transactions collectible but not available are deferred in the fund financial statements in accordance with
modified accrual, but not deferred in the government-wide financial statements in accordance with the accrual basis.
Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered
both measurable and available.
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.
Loans reported as receivables and payables 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) as appropriate and
are subject to elimination upon consolidation. 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.
Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or
expenses.
Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially
paid for them. Such reimbursements are treated as an adjustment to expenditures or expenses; that is, a corresponding
increase in expenditures or expenses in the reimbursing fund and a corresponding decrease in expenditures or expenses
in the reimbursed fund.
All other interfund transactions are treated as transfers. Transfers between governmental and proprietary funds are netted
as part of the reconciliation to the government-wide presentation.
See Note 3 for details of interfund transactions, including receivables and payables at year end.
Inventories are stated at average cost for governmental and proprietary funds. Inventory recorded by governmental funds
includes materials and supplies for roads. Governmental fund inventories are recorded as expenditures at the time the
inventory is consumed. Inventory recorded by proprietary funds includes supplies for internal service funds. Proprietary
fund inventories are recorded as expenses at the time the inventory is consumed.
Certain payments to vendors reflect costs applicable to future accounting periods and are accounted for as prepaid costs.
For the purpose of the governmental fund financial statements, special revenue fund expenditures relating to long-term
loans receivable arising from mortgage subsidy programs are charged to operations upon funding and the loans
receivable are recorded. The balance of the long-term receivable includes loans that may be forgiven if certain terms and
conditions of the loans are met.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-36-
Capital assets, which include property, plant, equipment, and infrastructure assets (roads, bridges, sidewalks, sewer, and
similar items), are reported in the governmental activities column in the government-wide financial statements. Capital
assets are defined by the County as assets with a cost of more than $5,000 for equipment and $25,000 for structures and
infrastructure and an estimated useful life of more than two years. Such assets are recorded at historical or estimated
historical cost. Contributed capital assets are recorded at estimated fair market value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the
asset are not capitalized.
The accounting treatment over property, plant, and equipment (capital assets) depends on whether the assets are used
in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide
or fund financial statements.
In the government-wide financial statements, property, plant, equipment and infrastructure (except for the maintained road
system) are accounted for as exhaustible capital assets in the governmental or business-type activities column. All capital
assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated capital assets
which are recorded at their estimated fair value at the date of donation.
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with
accumulated depreciation reflected in the Statement of Net Assets. Depreciation is provided over the assets’ estimated
useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as
follows:
Depreciable Asset Estimated Lives
Equipment 3-25 years
Structures and improvements 5-50 years
Infrastructure (except for the maintained road system) 20-75 years
The County has elected to use the modified approach to report its maintained road system . Under the modified approach
depreciation is not reported for this system and all expenditures, except for betterments and major improvements, made
to the system are expensed.
The County manages its maintained road system using the Metropolitan Transportation Commission’s Pavement
Management program (Program) and accounts for them using the modified approach. The Program establishes a
Pavement Condition Index (PCI) on a scale from zero to one hundred (0-100) for each road segment being maintained
by the Department of Public Works. The Program has defined the pavement of roads with PCIs of 40 or better to be in
a “Fair” or better condition and roads with a PCI of 55 or better to be in a “Good” or better condition. The system-wide
average PCI number for all paved or chip sealed roads in the County maintained road system is calculated on a weighted
by section, road area basis. The amount that an individual road section’s condition contributes to the overall system
average rating is proportionate to the amount of the total systems surfaced area that the individual segment contains.
It is the County’s policy relative to maintaining the maintained road system to keep an average PCI rating of 62. This
rating must be achieved over a three year period.
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements which
significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital
assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain
or loss is included in the results of operations.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-37-
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay
expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted
for the same as in the government-wide financial statements.
Unearned revenue is recorded for assets recognized in connection with a transaction before the earnings process is
complete. Those assets are offset by a corresponding liability for unearned revenue. In addition, loans receivable for
which repayment is deferred or for which the balance may be forgiven if certain terms and conditions of the loans are met
have also been offset by unearned revenue.
Deferred revenue is recorded under the modified accrual basis of accounting when revenue which has been earned during
the current period has met the measurable criteria but has not met the available criteria.
See Note 3 for details of unearned/deferred revenues at year end.
The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations
or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.
All long-term debt to be repaid from governmental and business-type resources is reported as liabilities in the
government-wide financial statements. The long-term debt consists primarily of certificates of participation, special
assessment bonds with County commitment, loans, capital leases, and accrued compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds
are reported as other financing sources and payment of principal and interest is reported as expenditures. The accounting
for proprietary funds is the same in the fund financial statements as it is in the government-wide financial statements.
It is the County’s policy to permit employees to accumulate a limited amount of earned but unused vacation or personal
paid leave. An unlimited amount of sick leave may be accrued in accordance with each bargaining unit’s MOU and, upon
separation from County’s service, will either be paid to employees or converted to PERS service credit. In the
government-wide financial statements the accrued compensated absences is recorded as an expense and related liability,
with the current portion estimated based on historical trends. In the governmental fund financial statements the
expenditures and liabilities related to those obligations are recognized only when they mature. In the proprietary funds
the accrued compensated absences is recorded as an expense and related liability in the year earned. The County
includes its share of social security and medicare taxes payable on behalf of the employees in the accrual for
compensated absences.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-38-
Equity is classified as net assets and displayed in three components:
• Invested in capital assets, net of related debt – Consists of capital assets including restricted capital assets, net
of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other
borrowings that are attributable to the acquisition, construction or improvement of those assets.
• Restricted net assets – Consists of net assets with constraints placed on the use either by (1) external groups
such as creditors, grantors, contributors or laws or regulations of other governments; or (2) law through
constitutional provisions or enabling legislation. These principally include restrictions for capital projects, debt
service requirements and other special revenue fund purposes.
• Unrestricted net assets – All other net assets that do not meet the definition of “restricted” or “invested in capital
assets, net of related debt.”
When both restricted and unrestricted net assets are available, unrestricted resources are depleted first before the
restricted resources are used.
In the governmental fund financial statements reserves and designations segregate portions of fund balance.
Reservations of fund balance are for amounts that are not available or are legally restricted by outside parties for use for
a specific purpose. Designations of fund balance are established by action of management and represent tentative plans
that are subject to change.
As of June 30, 2008, reservations of fund balance included:
Debt Service - to reflect the funds held for future payment on debt principal and interest.
Encumbrances - to reflect the outstanding contractual obligations for which goods and services have not been
received.
Inventory - to reflect the portion of assets which represent inventory and do not represent available spendable
resources.
Advances - to reflect the amount due from other funds that are long-term in nature. Such amounts do not represent
available spendable resources.
Loans Receivable - to reflect the portion of loans receivable which is long-term in nature. Such amounts do not
represent available spendable resources.
As of June 30, 2008, designations of fund balance included:
Designated for General - to reflect the funds the County has set aside to fund subsequent year expenditures and
projects not yet approved.
Designated for Leave Liability - to reflect the funds the County has set aside to fund subsequent payment to retire
compensated absences.
Designated for PERS Pension - to reflect funds the County has set aside to fund future PERS costs.
Designated for Special Projects - to reflect the funds the County has set aside to fund subsequent projects.
Designated for General Plan Update - to reflect the funds the County has set aside to fund the General Plan update.
Designated for Realignment - to reflect the funds the County has set aside to fund subsequent potential State
expenditures.
Designated for COP Lease Payment - to reflect the funds the County has set aside to fund subsequent COP Lease
payments.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-39-
Designated for Civil Litigation - to reflect the funds the County has set aside to fund subsequent civil litigation.
Designated for Technology - to reflect the funds the County has set aside to fund subsequent upgrades.
As of June 30, 2008, the County’s designations are reported in the financial statements as follows:
General
Designated for:
General $ 5,277,000
Leave liability 1,650,000
PERS pension 1,000,000
Special projects 6,170,000
General plan update 600,000
Realignment 300,000
COP 43,000
Civil litigation 40,000
Technology 993,000
Total $ 16,073,000
The State of California’s (State) Constitution Article XIIIA provides that the combined maximum property tax rate on any
given property may not exceed 1 percent of its assessed value unless an additional amount for general obligation debt
has been approved by voters. Assessed value is calculated at 100 percent of market value, as defined by Article XIIIA,
and may be adjusted by no more than 2 percent per year unless the property is sold or transferred. The State Legislature
has determined the method of distribution of receipts from a 1 percent tax levy among the County, cities, school districts,
and other districts.
The County of Nevada is responsible for assessing, collecting, and distributing property taxes in accordance with State
law. Property taxes are levied on both secured (real property) and unsecured (personal property other than land and
buildings) property. Supplemental property taxes are assessed upon transfer of ownership in property or completion of
new construction.
The County levies, bills, and collects taxes as follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates January 1 January 1
Due dates November 1 (1st installment) July 1
February 1 (2nd installment)
Delinquent dates December 10 (1st installment) August 31
April 10 (2nd installment)
The County of Nevada apportions secured property tax revenue in accordance with the alternate methods of distribution,
the “Teeter Plan”, as described by Section 4717 of the California Revenue and Taxation code. Under the Teeter Plan,
the County Auditor-Controller, an elected official is authorized to pay 100 percent of the property taxes billed (secured,
supplemental, and debt service) to the taxing agencies within the County. The County recognizes property tax revenues
in the period for which the taxes are levied. Previously, such taxes were allocated and paid as the taxes were collected.
To fund the advances, the County borrowed from its pooled cash and investments. The advances are secured by
delinquent taxes receivable and will be repaid as delinquencies plus penalties (10 percent) and interest (18 percent) are
collected. As of June 30, 2008, the outstanding net borrowing totaled $8,902,179 and was recorded as a reduction of
cash in the General fund.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-40-
Certain grant revenues are recognized when specific related expenditures have been incurred. In other grant programs,
monies are virtually unrestricted as to purpose of expenditure and are only revocable for failure to comply with prescribed
compliance requirements. These revenues are recognized at the time of receipt, or earlier if susceptible to accrual criteria
is met. Cash received prior to incurrence of the related expenditure is recorded as unearned revenue.
In the government-wide financial statements, expenses are classified by function for both governmental and business-type
activities.
In the fund financial statements, expenditures are classified as follows:
Government Funds – By Character
Current (further classified by function)
Debt Service
Capital Outlay
Proprietary Funds – By Operating and Nonoperating
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.
Adjustments resulting from errors or a change to comply with provisions of the accounting standards are treated as
adjustments to prior periods. Accordingly, the County reports these changes as restatements of beginning fund
balance/net assets. During the current year the County analyzed one agency fund and determined that it would be more
correctly classified as an enterprise fund. In addition, an adjustment to net assets was required to correct a prior year
misstatement of capital assets. The capital assets adjustment in governmental activities was due to errors in the
calculation of depreciation on structures and improvements in the manual depreciation schedules used in prior years and
an adjustment to infrastructure cost and accumulated depreciation to remove assets with a cost below the capitalization
threshold. The capital assets adjustment in business-type activities was to capitalize assets acquired in a prior year that
had not previously been capitalized and record the accumulated depreciation on those assets.
The impact of the restatements on the net assets on the government-wide financial statements as previously reported
is presented below:
Governmental Business-Type
Activities Activities
Net Assets, June 30, 2007, as previously reported $ 293,895,613 $ 18,423,356
Adjustment associated with:
Reclassification of funds - 52,264
Correction of capital assets ( 1,460,359) 1,937,377
Total Adjustments ( 1,460,359) 1,989,641
Net Assets, July 1, 2008, as restated $ 292,435,254 $ 20,412,997
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-41-
The impact of the restatements on the net assets on the fund financial statements as previously reported is presented
below:
Sanitation
District
Net Assets, June 30, 2007,as previously reported $ 19,655,762
Adjustment associated with:
Reclassification of funds 52,264
Correction of capital assets 1,937,377
Total Adjustments 1,989,641
Net Assets, July 1, 2008, as restated $ 21,645,403
The following major enterprise fund had deficit net assets:
The Western Nevada County Solid Waste fund had a net asset deficit of $5,433,876, due to the post closure liability
of $13,137,837. The County has established a pledge of revenues consisting of parcel charges to demonstrate
financial responsibility for postclosure maintenance in accordance with California Code of Regulations.
The following internal service fund had deficit net assets:
The Central Services fund had a net asset deficit of $10,965, which is expected to be eliminated through cost
containment.
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 (IRS) at least every five
years. During the current year, the County performed calculations of excess investment earnings on various bonds and
financing and at June 30, 2008, does not expect to incur a liability.
Under Article XIIIB of the California Constitution (the Gann Spending Limitation), the County is restricted as to the amount
of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must
either be refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules
or other refund arrangements.
For fiscal year ended June 30, 2008, the County has elected to early implement GASB Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other than Pensions. This statement addresses how
state and local governments should account for and report their costs and obligations related to postemployment
healthcare and other nonpension benefits. These benefits are collectively referred to as other postemployment benefits
(OPEB).
The GASB allows governments to apply this statement prospectively, establish the OPEB liability at zero at the beginning
of the initial year of implementation, and does not require governments to fund the OPEB plans. The statement
supersedes or amends all previous authoritative guidance on accounting and financial reporting for an employer’s OPEB
expense and related information.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-42-
The County implemented GASB Statement No. 50, Pension Disclosures. This statement, an amendment of GASB
Statement No. 25 and No. 27, enhances the information disclosed in the notes to the financial statements or presented
as required supplementary information (RSI). Statement No. 50 is intended to improve the transparency and decision
usefulness of reported information about pensions by state and local governmental plans and employers, and conforms
to the applicable changes adopted in Statement No. 45.
The County sponsors an investment pool that is managed by the County Treasurer for the purpose of increasing interest
earnings through investment activities. The investment pool is not registered with the Securities and Exchange
Commission as an investment company. Investments made by the Treasurer are regulated by the California Government
Code and by the County’s investment policy. The objectives of the policy are in order of priority, safety, liquidity, yield and
public trust. The Board of Supervisors review and approve the investment policy annually. The County Treasurer
prepares and submits a comprehensive investment report to the members of the Board and the investment pool
participants every month. The report covers the type of investments in the pool, maturity dates, par value, actual cost
and fair value. All cash and investments with the exception of deposits with fiscal agents and investments with fiscal
agents are considered a part of the investment pool.
The County sponsored investment pool includes both internal and external participants. The portion of the pool
attributable to external pool participants, which are considered involuntary participants, are included in the primary
government as an Investment Trust Fund which does not have separate financial reports. The State of California statutes
require certain special districts and other governmental entities to maintain their cash surplus with the County Treasurer.
The net assets value of involuntary participation in the investment pool totaled $64,700,923 at June 30, 2008
As of June 30, 2008, the County’s cash and investments are reported in the financial statements as follows:
Primary government $ 67,137,557
Investment trust fund 64,700,923
Agency funds 2,375,343
Total Cash and Investments $ 134,213,823
As of June 30, 2008, the County’s cash and investments consisted of the following:
Cash:
Cash on hand $ 1,204,667
Deposits in Treasurer’s Pool (less outstanding warrants) 8,093,423
Deposits with fiscal agents 409,977
Total Cash 9,708,067
Investments:
In Treasurer’s Pool 121,422,256
Investments with fiscal agents 3,083,500
Total Investments 124,505,756
Total Cash and Investments $ 134,213,823
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-43-
At year end, the carrying amount of the County’s cash deposits (including amount in checking accounts, money market
accounts and deposits with fiscal agents) was $8,503,400 and the bank balance was $18,813,227. The difference
between the bank balance and the carrying amount represents outstanding warrants and deposits in transit.
Custodial Credit Risk For Deposits - Custodial Credit Risk is the risk that, in the event of the failure of a depository
financial institution, the County will not be able to recover its deposits or collateral securities that are in the possession
of an outside party. The County’s investment policy requires that deposits in banks must meet the requirements of the
California Government Code. Under this code, deposits of more than $100,000 must be collateralized at 105 percent
to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $100,000 of the County’s
deposits are insured by the Federal Deposit Insurance Corporation and the balance in excess of $100,000 is fully
collateralized.
As of June 30, 2008, the County had the following investments:
Maturities
Weighted
Average
Interest Over Fair Maturity
Rates 0-1 year 1-5 years 5 years Value (Years)
Commercial Paper 1.95-2.40% $ 19,963,650 $ - $ - $ 19,963,650 0.01
Government Agency Securities 2.375-3.625% - 57,458,606 - 57,458,606 2.11
Negotiable CD’s 2.50% 10,000,000 - - 10,000,000 0.52
Certificates of Deposit 2.43-3.06% 34,000,000 - - 34,000,000 0.41
Total Pooled Investments 63,963,650 57,458,606 - 121,422,256 1.16
Corporate Notes 5.00% - - 945,000 945,000 5.76
IXIS 5.91% 2,138,500 - - 2,138,500 -
Total Investments Held By Fiscal Agents 2,138,500 - 945,000 3,083,500 1.76
Total Investments $ 66,102,150 $ 57,458,606 $ 945,000 $ 124,505,756 1.27
Interest Rate Risk - Interest rate risk is the risk of loss due to the fair value of an investment falling due to interest rates
rising. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market
interest rates. Through its investment policy, the County manages its exposure to fair value losses arising from
increasing interest rates by limiting the maturity of its investments to 5 years or less. Of the County’s $124,505,756
investment portfolio, over 99% of the investments have a maturity of one year or less. Of the remainder, less than 0.1%
have a maturity of more than 5 years.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-44-
Credit Risk - Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. State law and County investment policy limit investments in commercial paper to the rating of A1 by
Standards and poor’s or P1 by Moody’s Investors Service. State law also limits investments in corporate bonds to the
rating of A by both Standards & Poor’s and Moody’s Investors Service. The County does not have credit limits on U.S.
government securities or U.S. government agency securities. The County’s investment policy does not further limit its
investment choices.
Standard & Poor’s % of
Investments at June 30, 2008 Rating Portfolio
Commercial paper A-1 12.02%
Commercial paper A-1+ 4.01%
Federal Farm Credit Bank AAA 26.37%
Federal Home Loan Bank AAA 15.81%
Federal Home Loan Mortgage AAA 3.97%
Corporate notes AA 0.76%
Negotiable CD’s Unrated 8.03%
Certificates of Deposit Unrated 27.31%
IXIS Unrated 1.72%
Total 100%
Concentration of Credit Risk - Concentration of credit risk is the risk of loss attributed to the magnitude of the County’s
investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents
a heightened risk of potential loss. State law restricts the County’s investments in commercial paper to 40% of its
investment pool and to 10% per issuer and corporate notes and negotiable certificates of deposit to 30% of its investment
pool and to 10% per issuer. Approximately 73% of the County’s investments at year-end are in U.S. Government Agency
securities and certificates of deposit. There is no limitation on amounts invested in these types of issues.
A condensed statement of net assets and changes in net assets for the investment pool as of and for the year ended June
30, 2008 follows:
Internal External Total
Participants Participants Pool
Cash on hand $ 1,204,667 $ - $ 1,204,667
Deposits (Less outstanding warrants) 8,093,423 - 8,093,423
Investments 56,721,333 64,700,923 121,422,256
Other assets - 519,800 519,800
Other liabilities - ( 137,370) ( 137,370)
Net Assets at June 30, 2008 $ 66,019,423 $ 65,083,353 $ 131,102,776
Net assets at July 1, 2007 $ 72,178,263 $ 65,658,677 $ 137,836,940
Net changes in investments by pool participants ( 6,158,84 0 ) ( 575,324) ( 6,734,164)
Net Assets at June 30, 2008 $ 66,019,423 $ 65,083,353 $ 131,102,776
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-45-
The County reflects cash and investments held for certificates of participation as restricted cash of $2,138,574, in non-major
governmental funds, cash and investments held for certificates of participation as restricted cash of $1,006,887 in
the Western Nevada County Solid Waste major enterprise fund and cash held for payment of retention on the Lake
Wildwood treatment plant project as restricted cash of $25,000 in the Sanitation District major enterprise fund.
In addition the Agency funds reflect cash and investments held for various restricted purposes as restricted cash of
$323,016.
Capital assets activity for the year ended June 30, 2008, was as follows:
Balance Adjustments/ Balance
July 1, 2007 Additions Retirements Transfers June 30, 2008
Capital Assets, Not Being Depreciated:
Land and easements $ 101,579,438 $ 17,360 $ - $ - $ 101,596,798
Infrastructure (maintained road system) 100,965,723 647,990 - ( 2,200,310) 99,413,403
Construction in progress 1,484,577 1,072,099 - ( 835,530) 1,721,146
Total Capital Assets, Not Being Depreciated 204,029,738 1,737,449 - ( 3,035,840) 202,731,347
Capital Assets, Being Depreciated:
Infrastructure 29,038,996 769,227 ( 185,090) ( 93,021) 29,530,112
Structures and Improvements 50,04 1 , 6 3 7 97,230 ( 976,343) 20,510 49,183,034
Equipment 15,462,419 2,524,541 ( 1,678,620) - 16,308,340
Total Capital Assets, Being Depreciated 94,543,052 3,390,998 ( 2,840,053) ( 72,511) 95,021,486
Less Accumulated Depreciation For:
Infrastructure ( 11,772,525 ) ( 465,539) 86,191 181,545 ( 11,970,328)
Structures and Improvements ( 1 7 , 2 8 3 ,63 3 ) ( 955,033) 435,198 1,466,447 ( 16,337,021)
Equipment ( 11,573,9 3 0 ) ( 1,141,381) 1,617,628 - ( 11,097,683)
Total Accumulated Depreciation ( 40,630, 0 8 8 ) ( 2,561,953) 2,139,017 1,647,992 ( 39,405,032)
Total Capital Assets, Being Depreciated, Net 53,912,964 829,045 ( 701,036) 1,575,481 55,616,454
Governmental Activities Capital Assets, Net $ 257,942,702 $ 2,566,49 4 ($ 701,036) ($ 1,460,359) $ 258,347,801
Balance Adjustments/ Balance
July 1, 2007 Additions Retirements Transfers June 30, 2008
Capital Assets, Not Being Depreciated:
Land $ 3,593,251 $ - $ - $ - $ 3,593,251
Construction in progress 22,289,452 1 6 , 5 4 7 , 4 5 9 - ( 584,122) 38,252,789
Total Capital Assets, Not Being Depreciated 25,882,703 16,547,459 - ( 584,122) 41,846,040
Capital Assets, Being Depreciated:
Infrastructure 22,932,957 - - 4,939,622 27,872,579
Structures and Improvements 3,192,941 118 , 2 5 8 - - 3,311,199
Equipment 3,725,802 750,022 ( 260 533) - 4,215,291
Total Capital Assets, Being Depreciated 29,851,700 868, 2 8 0 ( 260,533) 4,939,622 35,399,069
Less Accumulated Depreciation For:
Infrastructure ( 11,843 , 2 5 9 ) ( 789,662) - ( 3,002,245) ( 15,635,166)
Structures and Improvements ( 1,332,025) ( 1 4 9 , 5 1 5 ) - - ( 1,481,540)
Equipment ( 2,577,346) ( 400,239) 256,257 - ( 2,721,328)
Total Accumulated Depreciatio n ( 15,752,630) ( 1,339,416) 256,2 5 7 ( 3,002,245) ( 19,838,034)
Total Capital Assets, Being Dep r e c i a t e d , N e t 14,099,070 ( 4 7 1 , 1 3 6 ) ( 4,276) 1,937,377 15,561,035
Business-type Activities Capital Assets, Net $ 39,981,773 $ 16,076,323 ($ 4,276) $ 1,353,255 $ 57,407,075
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-46-
Depreciation expense was charged to governmental functions as follows:
General government $ 411,373
Public Ways and facilities 791,332
Public Protection 722,124
Health and sanitation 93,727
Public assistance 56,170
Education 63,841
Subtotal Governmental funds 2,138,567
Depreciation on capital assets held by the County’s internal service funds are charged
to the various functions based on their usage of the assets 423,386
Total Depreciation Expense – Governmental Functions $ 2,561,953
Depreciation expense was charged to business-type functions as follows:
Western Nevada County Solid Waste 169,960
Airport 297,650
Transit 214,039
Sanitation District 657,767
Total Depreciation Expense - Business-Type Functions $ 1,339,416
Construction in progress for governmental activities related primarily to work performed on Allison Ranch Road, Dog Bar
Road, Magnolia Road, Brunswick Road, Duggans Road, Rough and Ready Highway, Washington Road, Wolf Road,
Hirschdale Bridges, Maybert Bridge, Floriston bridge replacement, Purdon bridge replacement, Stinson Road culvert #2,
Gold Country Drive drainage, and Alta Street sidewalk. Construction in progress for the business-type activities related
primarily to work performed on Cascade Shores treatment facility upgrade, Lake Wildwood wastewater treatment plant
upgrade, Lake of the Pines wastewater treatment plant upgrade, Penn Valley treatment facility upgrade, airport structure,
MRTS redesign, and NSJ expansion project.
During the current year, the Sanitation District major enterprise fund recorded an asset impairment loss of $584,122 for
the Cascade Shores Wastewater Treatment Plant. The impairment is due to a change in the facility construction. Due
to increasing costs the facility design that had been capitalized as construction in progress was scrapped and a prefab
structure has replaced it.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-47-
At June 30, 2008,the components of deferred revenue and of unearned revenue reported were as follows:
Deferred Unearned Total
General Fund
State, Federal and other agency grant revenue receivable $ 5 5 2 , 8 4 7 $ - $ 552,847
State mandated costs receivable 69,514 - 69,514
Federal contract revenue receivable 187,670 - 187,670
Road Fund
Federal grant revenue receivable 187,764 - 187,764
Grantor drawdowns prior to meeting all eligibility requirements - 110,227 110,227
Community Development Agency
Building inspection fees - 169,943 169,943
Plan/Site review fees 86,239 86,239
Plan/Site review fees receivable 48,426 - 48,426
Environmental health fees receivable 27,472 - 27,472
Other agency grant revenue receivable 10,119 - 10,119
Human Services Agency
State and other agency grant revenue receivable 322,572 - 322,572
Advances from California Department of Social Services - 303,800 303,800
Non Major Governmental Funds
State grant revenue receivable 61,089 - 61,089
Federal grant revenue receivable 237,480 - 237,480
Airport
Tiedown and hangar payments - 24,877 24,877
Non Major Enterprise Funds
N.V. County Transportation Commission allocation - 1,695,897 1,695,897
Internal Service Funds
Fleet vehicle maintenance charges - 230,234 230,234
Total $ 1,704,953 $ 2,621,217 $ 4,326,170
The following is a summary of all long-term liabilities transactions for the year ended June 30, 2008:
Amounts
Balance Additions/ Balance Due Within
July 1, 2007 Adjustments Retirements June 30, 2008 One Year
Certificates of Participation $ 14,730,000 $ - $ 880,000 $ 13,850,000 $ 910,000
Special Assessment Bonds with
County Commitment 329,908 - 9,908 320,000 10,000
Loans 3,893,757 - 141,503 3,752,254 150,700
Accrued claims liability (Note 6) 689,198 1,225,799 1,073,806 841,191 841,191
Capital Lease (Note 3F) 33,577 32,750 17,949 48,378 18,617
Compensated Absences (Note 1M) 4,460,030 5,295,335 4,619,070 5,136,295 5,136,295
Net OPEB Obligation (Note 5) - 4,002,000 2,062,000 1,940,000 -
$ 24,136,470 $ 10,555,884 $ 8,804,236 $ 25,888,118 $ 7,066,803
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-48-
Amounts
Balance Additions/ Balance Due Within
July 1, 2007 Adjustments Retirements June 30, 2008 One Year
Certificates of Participation $ 9,165,000 $ - $ 490,000 $ 8,675,000 $ 505,000
Less: bond issue costs ( 381,725) 25,590 - ( 356,135) ( 25,590)
Less: deferred reacquisition costs ( 567,156) 37,810 - ( 529,346) ( 37,810)
Certificates of Participation, Net 8,216,119 63,400 490,000 7,789,519 441,600
Special Assessment Bonds
with County Commitment 234,000 - 62,000 172,000 72,000
Loans 23,953,580 20,325,196 9,551,664 34,727,112 1,488,981
Less: Unamortized Discount ( 579,882) ( 2,523,888) - ( 3,103,770) -
Loans, Net 23,373,698 17,801,308 9,551,664 31,623,342 1,488,981
Closure/Post-Closure (Note 3G) 13,514,659 348,395 611,148 13,251,906 2,462,083
Compensated Absences (Note 1M) 252,272 379,458 312,660 319,070 319,070
$ 45,590,748 $ 18,592,561 $ 11,027,472 $ 53,155,837 $ 4,783,734
Internal service funds predominately serve the governmental funds. Accordingly, long-term liabilities for these funds are
included as part of the above totals for governmental activities. Estimated claims are liquidated by charges for services
collected through individual internal service funds. The capital lease liability is liquidated by lease payments made by the
departments leasing the equipment. Compensated absences for the governmental activities are generally liquidated by
the fund where the accrued liability occurred.
Special assessment bonds with County commitment are not a direct responsibility of the County. Principal and interest
payments are funded from the collection of special assessments. For the governmental activities, the debt is accounted
for in the Special Assessment Debt with County Commitment Component Unit debt service fund. For the business-type
activities, the debt is accounted for in the Sanitation District component unit enterprise fund. The County is obligated for
special assessment debt only to the extent of special assessments collected.
Governmental Business-Type
Activities Activities
At June 30, 2008, Certificates of Participation consisted of the following:
2002 Issue Certificates of Participation, issued in the amount
of $21,385,000 and payable in annual installments of $880,000
to $1,660,000, with an interest rate of 4.05% to 5.25% and
maturity date of June 30, 2020. These bonds were used to defease
1991 and 1993 Certificates of Participation financing the acquisition
and construction of the County Administration building and the County
jail. $ 13,850,000 $ -
2002 Refunding of 1991 Certificates of Participation, issued in the
amount of $11,415,000, and payable in annual installments of
$475,000 to $900,000 with an interest rate of 2.30% to 5.00% and
maturity of June 30, 2021. These bonds were used to refund the 1991
Certificates of Participation which were used for landfill closure costs. - 8,675,000
Total Certificates of Participation $ 13,850,000 $ 8,675,000
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-49-
Governmental Business-Type
Activities Activities
At June 30, 2008, Special Assessment Bonds with County Commitment
consisted of the following:
County Service Area 22 Assessment District Limited Obligation Improvement
Bonds, issued in the amount of $329,908 and payable in annual installments
of $9,908 to $25,000 with an interest rate of 5.25% to 5.50% and maturity of
September 2, 2026. Bond proceeds were used for the construction of
improvements. $ 320,000 $ -
USDA Rural Development Bond - North San Juan, issued in the amount of
$76,130 and payable in annual installments of $1,000 to $3,000 with an interest
rate of 5.00% and maturity of September 2, 2018. Bond proceeds were used
to construct improvements in the North San Juan Sewer Assessment District. - 27,000
USDA Rural Development Bond - Penn Valley, issued in the amount of
$1,264,703 and payable in semi-annual installments of $35,000 to $75,000
and maturity of September 2, 2009. Bond proceeds were used for the
construction of a wastewater collection, treatment, and disposal system
in the Penn Valley Sewer Assessment District. - 145,000
Total Special Assessment Bonds $ 320,000 $ 172,000
At June 30, 2008, Loans consisted of the following:
Crown Point Building Loan, issued in the amount of $3,210,000
and payable in annual installments of $52,000 to $120,000, with an
interest rate of 4.75 to 8.00% and maturity of November 1, 2025. Loan
proceeds were used to finance the acquisition of the Crown Point building
to house County health programs. $ 2,940,949 -
Laura Wilcox Building Loan, issued in the amount of $880,000 and
payable in annual installments of $13,400 to $34,200 with an interest
rate of 4.99% and maturity of August 31, 2025. Loan proceeds were used
to finance the acquisition of the Laura Wilcox building to house County
children’s programs. 811,305 -
California Airport Loan, issued in the amount of $360,000 and payable
in annual installments of $17,215 to $30,519 with an interest rate of
4.28% and maturity of July 26, 2017. Loan proceeds were used to finance
the construction of an above ground aircraft fuel storage and dispensing system. - 226,488
California Airport Loan, issued in the amount of $258,500 and payable
in annual installments of $16,600 to $24,701 with an interest rate of
6.06% and maturity of September 21, 2011. Loan proceeds were used to
finance airport improvements. - 64,913
SWRCB Revolving Loan, issued in the amount of $170,367 and payable
in annual installments of $8,445 to $11,116 with an interest rate of
3.10% and maturity of January 22, 2016. Loan proceeds were used to
finance modifications to the Cascade Shores Wastewater collection system
with upgrade and modification to the existing lift station. - 80,109
LaSalle Bank National Association loan, issued in the amount of $8,000,000
and payable in one installment of $8,000,000 with an interest rate of 4.48% and
maturity of August 1, 2009. Loan proceeds were used for interim financing
for the acquisition and construction of improvements to the Lake of the Pines
Zone 2 wastewater system. - 2,500,000
LaSalle Bank National Association loan, issued in the amount of $8,500,000
and payable in one installment of $8,500,000, with an interest rate of 4.48% and
maturity of August 1, 2009. Loan proceeds were used for interim financing
for the acquisition and construction of improvements to the Lake Wildwood Zone 1
wastewater system. - 1,000,000
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-50-
Governmental Business-Type
Activities Activities
At June 30, 2008, Loans consisted of the following: (Continued)
State Water Resources Control Board loan, issued in the amount of $12,122,824
plus accrued interest of $110,523 and payable in annual installments of $492,213
to $739,310, with an interest rate of 2.2% and maturity on November 23, 2027.
Loan proceeds were used for the acquisition and construction of improvements
to the Lake Wildwood Zone 1 wastewater system. - 12,233,347
State Water Resources Control Board loan, issued in the amount of $18,964,071
and payable in annual installments of $948,204, with an interest rate of 0.0% and
maturity on January 12, 2028. Loan proceeds were used for the acquisition
and construction of improvements to the Lake of the Pines Zone 2 wastewater
system. The loan includes a loan discount of $3,160,742. Loan proceeds are
being drawndown as the project is constructed. At June 30, 2008, $18,622,255
of the loan had been drawndown and a loan discount of $3,103,770 had been incurred. - 18,622,255
Total Loans $ 3,752,254 $ 34,727,112
The annual aggregate maturities for the years subsequent to June 30, 2008, are as follows:
Certificates of Participation
Governmental Activities Business-Type Activities
Year Ended
June 30 Principal Interest Principal Interest Total
2009 $ 910,000 $ 618,904 $ 505,000 $ 403,434 $ 2,437,338
2010 940,000 584,785 530,000 384,244 2,439,029
2011 980,000 547,560 545,000 363,044 2,435,604
2012 1,010,000 507,760 575,000 341,244 2,434,004
2013 1,055,000 465,801 595,000 317,094 2,432,895
2014-2018 6,025,000 1,526,244 3,415,000 1,138,388 12,104,632
2019-2023 2,930,000 160,913 2,510,000 256,750 5,857,663
Total $ 13,850,000 $ 4,411,967 $ 8,675,000 $ 3,204,198 $ 30,141,165
Special Assessment Bonds with County Commitment
Governmental Activities Business-Type Activities
Year Ended
June 30 Principal Interest Principal Interest Total
2009 $ 10,000 $ 17,050 $ 72,000 $ 9,110 $ 108,160
2010 11,000 16,499 77,000 3,863 108,362
2011 11,000 15,921 2,000 1,100 30,021
2012 12,000 15,318 2,000 1,000 30,318
2013 13,000 14,661 2,000 900 30,561
2014-2018 74,000 62,288 14,000 2,600 152,888
2019-2023 95,000 39,463 3,000 75 137,538
2024-2028 94,000 10,615 - - 104,615
Total $ 320,000 $ 191,815 $ 172,000 $ 18,648 $ 702,463
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-51-
Loans
Governmental Activities Bus i n e s s-Type Activities
Year Ended Service
June 30 Principal Interest Principal Interest Charge Total
2009 $ 150,700 $ 187,010 $ 1,488,981 $ 301,573 $ 118,826 $ 2,247,090
2010 160,501 177,208 4,992,195 232,670 117,326 5,679,900
2011 170,948 166,762 1,496,777 145,450 112,285 2,092,222
2012 170,564 155,626 1,492,992 136,922 107,133 2,063,237
2013 167,797 146,875 1,506,126 129,205 101,868 2,051,871
2014-2018 969,529 603,830 7,666,259 524,069 426,220 10,189,907
2019-2023 1,229,184 344,175 7,859,149 331,312 276,093 10,039,913
2024-2028 733,031 53,650 8,224,633 130,451 108,709 9,250,474
Total $ 3,752,254 $ 1,835,136 $ 34,727,112 $ 1,931,652 $ 1,368,460 $ 43,614,614
The County leases office buildings and equipment under non-cancellable operating leases. Total costs for these leases
was $799,703 for the year ended June 30, 2008. The future minimum lease payments are as follows:
Year Ended Lease
June 30 Obligations
2009 $ 267,007
2010 260,459
2011 259,385
2012 273,866
2013 281,948
Total $ 1,342,665
The County has entered into certain capital lease agreements under which the related equipment will become the property
of the County when all terms of the lease agreements are met.
Present Value
Of remaining
Stated Payments at
Interest Rate June 30, 2008
Governmental activities 5.90% - 11.91% $ 48,378
Total $ 48,378
Equipment and related accumulated depreciation under capital lease are as follows:
Governmental
Activities
Equipment $ 87,322
Less: Accumulated depreciation ( 28,534)
Net Value $ 58,788
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-52-
As of June 30, 2008, capital lease annual amortization is as follows:
Year Ended Governmental
June 30 Activities
2009 $ 21,466
2010 15,821
2011 14,733
2012 1,548
Total Requirements 53,568
Less Interest ( 5,190)
Present Value of Remaining Payments $ 48,378
The County is responsible for one closed and one inactive solid waste landfill site. State and federal laws and regulations
require the County to place a final cover on its landfill sites when they stop accepting waste and to perform certain
maintenance and monitoring functions at the landfill sites for thirty years after closure. GASB Statement No. 18 requires
a portion of these closure and postclosure care costs be reported as an operating expense in each period based on landfill
capacity used as of each statement of net assets date. Since the landfills are no longer accepting waste, the entire
estimated expense and liability have been reported.
As of June 30, 2008, the County’s estimated remaining liability for post closure maintenance costs for the closed landfill
was $13,137,837. The estimated remaining liability for closure of the inactive landfill was zero with $114,069 estimated
for postclosure maintenance. These estimates are based on the amount that would be paid if all equipment, facilities,
and services required to close and/or monitor the landfills were acquired as of June 30, 2008. Actual costs may be higher
due to inflation, change in technology, or changes in regulations.
The County is required by the California Code of Regulations to demonstrate financial responsibility for post closure
maintenance costs through a pledge of revenues. The County has met this requirement for the closed landfill through
a pledge of annual parcel charges. A pledge of the remaining fund balance for the inactive landfill is pending approval
by the California Integrated Waste Management Board.
During the course of operations, transactions occur between funds to account for goods received or services rendered.
These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their
share of pooled cash, the receivables and payables are also classified as due from or due to other funds. The following
are due from and due to balances as of June 30, 2008:
Due From Due To
Other Funds Other Funds
General fund $ 2,411,448 $ 405,336
Road fund 251,672 127,204
Community Development Agency 304,999 54,135
Human Services Agency 1,551,996 447,328
Health and Welfare Realignment 21,211 935,207
Nonmajor Governmental funds 835,591 3,566,518
Western Nevada County Solid Waste 37,426 136,021
Airport 33,504 540
Sanitation District 1,519,772 1,525,949
Nonmajor Enterprise funds 6,163 63,636
Internal Service Funds 488,205 200,113
Total $ 7,461,987 $ 7,461,987
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-53-
Advances to/from other funds are non-current interfund loans and are offset by a fund balance reserve account in
applicable governmental funds to indicate they are not available for appropriations and are not expendable available
financial resources. The following are advances to/from other funds as of June 30, 2008:
Advance to Advance from
Other Funds Other Funds
General fund $ 97,000 $ -
Nonmajor Governmental funds 219,739 219,739
Airport - 93,000
Sanitation District - 4,000
Total $ 316,739 $ 316,739
Transfers are indicative of funding for capital projects, lease payments or debt service, reimbursement of various County
operations and re-allocations of special revenues. The following are the interfund transfer balances as of June 30, 2008:
Transfer Transfer
In Out
General fund $ 8,177,686 $ 8,408,933
Road fund 4,438,921 -
Community Development Agency 2,443,740 262,423
Human Services Agency 9,100,757 3,883
Health and Welfare Realignment 127,268 8,296,826
Nonmajor Governmental funds 5,105,931 13,111,085
Western Nevada County Solid Waste 16,246 -
Airport 29,908 -
Sanitation District 614,211 -
Internal Service funds 44,728 16,246
Total $ 30,099,396 $ 30,099,396
The County contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public
employee defined benefit plan. PERS provides retirement and disability benefits, annual cost of living adjustments, and
death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for
participating public entities within the State of California. Benefit provisions and all other requirements are established by
statute. Copies of PERS’ annual financial report may be obtained from their executive office – 400 P Street, Sacramento,
CA 95814.
Miscellaneous plan members are required to contribute 8 percent of their annual covered salary. Safety plan members
are required to contribute 9 percent of their annual covered salary. The County is required to contribute the actuarially
determined remaining amounts necessary to fund the benefits for its members. The County has committed to contribute
a portion of the required employee contribution in addition to their own required contributions. The actuarial methods and
assumptions used are those adopted by the PERS Board of Administration. The required employer contribution rate for
fiscal year 2007/2008 was 18.198 percent for miscellaneous employees and 31.458 percent for safety employees. The
contribution requirements of the plan are established by State statute and the employer contribution rate is established
and may be amended by PERS. The County is required to contribute the remaining amounts necessary to fund the
benefits of its members using the actuarial basis adopted by the PERS Board of Administrators.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-54-
For fiscal year 2007/2008, the County’s annual pension cost of $8,351,103 for the miscellaneous plan and $1,557,114
for the safety plan was equal to the County’s required and actual contributions. The required contribution was determined
as part of the June 30, 2005, actuarial valuation using the entry age normal actuarial cost method. The actuarial
assumptions included (a) 7.75 percent investment rate of return (net of administrative expenses), (b) projected annual
salary increases of 3.25 percent to 14.45 percent for miscellaneous plan and 3.25 percent to 14.45 percent for safety plan,
depending on age, service, and type of employment, and (c) 3.25 percent per year cost of living adjustment. Both (a) and
(b) included an inflation component of 3.00 percent. The actuarial value of PERS assets was determined using techniques
that smooth the effect of short term volatility in the market value of investments over a three-year period (smoothed market
value). Pers unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed
basis. Initial unfunded liabilities are amortized over a closed period that depends on the plan’s date of entry into PERS.
Subsequent plan amendments are amortized as a level percentage of pay over a closed 20 year period. The table below
presents three-year trend information.
Fiscal Year Annual Pension Percentage of Net Pension
Ending Cost (APC) APC Contributed Obligation
June 30, 2006 $ 6,171,136 100% -
June 30, 2007 8,729,365 100% -
June 30, 2008 9,908,217 100% -
As of June 30, 2007, the most recent actuarial valuation date, the miscellaneous plan was 79.8 percent funded. The
actuarial accrued liability for benefits was $248,063,046, and the actuarial value of assets was $197,968,605, resulting
in an unfunded actuarial accrued liability (UAAL) of $50,094,441. The covered payroll (annual payroll of active employees
covered by the plan) was $45,650,537, and the ratio of the UAAL to the covered payroll was 109.7 percent.
Since the safety plan has less than 100 active members in at least one valuation since June 30, 2003, it is required to
participate in a risk pool and does not present individual plan funded status.
The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multi-year
trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liability for benefits.
The County of Nevada provides, under a defined benefit plan, retiree healthcare benefits to qualifying employees retiring
directly from the County. The benefit level is determined by date of hire and length of service. The County has
contracted for medical coverage to be provided through an agent multiple-employer CalPERS Healthcare (PEHMCA) plan.
The County pays the least expensive available plan single premium up to Medicare eligible age for retirees with more than
20 years of County Service. For employees hired before July 1, 2000, with less than 20 years of County service at
retirement, receive a fixed stipend amount. After reaching Medicare eligible age, the County also pays 80% of the least
expensive Medicare supplemental plan single premium for all retirees hired before July 1, 2000 and for employees hired
after July 1, 2000 with 20 years of County service. For safety employees with disability retirement, the County pays 100%
of the least expensive medical single premium for life.
Employees Hired On or After July 1, 2008—Employees hired on or after July 1, 2008, and who retire from the County,
the County will continue to provide access to medical insurance coverage for those employees who retire from
employment with the County and who constitute “annuitants” as defined by the Public Employees Medical and Hospital
Care Act (PEMHCA) only.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-55-
The minimum employer contribution requirement is a per participant amount contributed by the County and which is
established and amended by the plan administrators, the CalPERS Board of Trustees, for the PEHMCA plan. The fixed
stipend amount is a negotiated benefit between the County and the various employee bargaining groups.
The County has adopted a 5-year phase-in funding plan for the Annual Required Contribution (ARC). The actuarially
determined ARC amount represents the level of funding that, if paid on an ongoing basis, is projected to cover the normal
cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The 2007-08 contribution equals 5% of annual covered payroll and is equal to the pay-as-you-go cost plus 20% between
the full pre-funding ARC and the pay-as-you-go. The second year will be 40% of the difference and each proceeding year
increasing equally to reach the 100% full funding after 5 years. The County has established an irrevocable trust with
CalPERS- California Employers’ Retiree Benefit Trust Fund (CERBT) to deposit the contributions above the current year
pay-as-you-go portion.
The County’s OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC). The
ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liabilities (or funding excess). (The following table shows the County’s annual OPEB cost
for the year, the amount actually contributed to the plan, and the resulting net OPEB obligation.)
Annual required contribution $ 4,002,000
Contributions made:
Pay as you go contribution 1,462,000
Funding of full ARC Contribution 600,000
Net OPEB Obligation $ 1,940,000
The County annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation
for the year ended June 30, 2008, was as follows:
Fiscal Year
Ended
Annual OPEB
Cost
Percentage of Annual
OPEB Cost Contributed
Net OPEB
Obligation
6/30/2008 $ 4,002,000 51.5% $1,940,000
The quantifications of costs set forth above should not be interpreted in any way as vesting such benefits: rather the
disclosures are made solely to comply with the County’s reporting obligations under GASB 45, as the County understands
these obligations.
The funded status of the plan as of June 30, 2008, was as follows:
Actuarial accrued liability (AAL) $ 35,208,000
Actuarial value of plan assets 0
Unfunded actuarial accrued liability (UAAL) $ 35,208,000
Funded ratio (actuarial value of plan assets/AAL) 0.00%
Covered payroll (active plan members) $ 41,158,000
UAAL as a percentage of covered payroll 85.5%
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 employer 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 (RSI) following the notes to the financial statements, presents the initial information for this transition year.
In subsequent years, the RSI schedule will present multi-year trend information that will show whether the actuarial value
of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2008
-56-
Project