ORDER NO. 31740 APPROVE BASIC FINANCIAL STATEMENT AND SUPPLEMENTARY INFORMATION AUDIT FOR PERIOD END SEPTEMBER 30, 2009 Came to be heard this the 24th day of May, 2010, with a motion made by Commissioner Letz, seconded by Commissioner Williams, the Court unanimously approved by a vote of 4 -0 -0 to: Approve the Basic Financial Statement and Supplementary Information Audit for the period ending September 30, 2009, as presented. PC) 374/0 COMMISSIONERS' COURT AGENDA REQUEST MADE BY: Jeannie Hargis OFFICE: Auditor's Office MEETING DATE: May 24, 2010 TIME PREFERRED: 10:00 AM SUBJECT: Consider, Discuss and Take Appropriate Action to approve the Basic Financial Statement and Supplementary Information Audit for the period ending September 30, 2009. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Keith Neffendorf ESTIMATED LENGTH OF PRESENTATION: 15 minutes IF PERSONNEL MATTER - NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 PM previous Tuesday THIS REQUEST RECEIVED BY: THIS RQUEST RECEIVED ON: @ .M. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. KERR COUNTY, TEXAS BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2009 PRELIMINARY DRAFT KERR COUNTY, TEXAS ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2009 TABLE OF CONTENTS Exhibit Page Independent Auditors' Report 1 Management's Discussion and Analysis 2 Basic Financial Statements Government Wide Statements: A -1 Statement of Net Assets 9 B -1 Statement of Activities 10 Governmental Fund Financial Statements: C-1 Balance Sheet 12 C -2 Reconciliation for C -1 14 C -3 Statement of Revenues, Expenditures and Changes in Fund Balance 15 C -4 Reconciliation for C -3 17 Fiduciary Funds: E -1 Statement of Fiduciary Net Assets 18 Notes to the Financial Statements 19 Required Supplementary Information G -1 Budgetary Comparison Schedule - General Fund 38 G -2 Budgetary Comparison Schedule - Road and Bridge Fund 39 G -3 Schedule of Funding Progress for the Retirement Plan 40 PRELIMINARY DRAFT NEFFENDORF, KNOPP, DOSS & COMPANY, P.C. Certified Public Accountants P.O. BOX 874.736 S. WASHINGTON ST. FREDERICKSBURG, TEXAS 78624 -0874 (830) 997 -3348 MEMBER FAX: (830) 997 -3333 MEMBER AMERICAN INSTITUTE OF Email: nkhd @austin.rr.com TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT Honorable Judge and County Commissioners Kerr County, Texas Kerrville, TX 78028 We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Kerr County, Texas, as of and for the year ended September 30, 2009, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of Kerr County, Texas's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of Kerr County, Texas, as of September 30, 2009, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 14, 2010 on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The management's discussion and analysis (pages 2 through 8), budgetary comparison information (pages 38 and 39), and schedule of funding progress for the County's retirement plan (page 39) are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. NEFFENDORF, KNOPP, DOSS & COMPANY, P.C. Fredericksburg, Texas May 14, 2010 1 PRELIMINARY DRAFT KERR COUNTY, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) FOR THE YEAR ENDED SEPTEMBER 30, 2009 MANAGEMENTS DISCUSSION AND ANALYSIS As management of Kerr County, Texas, we offer readers of the County's financial statements this narrative overview and analysis of the financial statements of the County for the year ended September 30, 2009. Please read it in conjunction with the independent auditors' report on page 1, and County's Basic Financial Statements which begin on page 9. FINANCIAL HIGHLIGHTS ➢ The assets of the County exceeded its liabilities at the close of the most recent fiscal year by $47,091,164 (net assets). Of this amount, $4,017,164 (unrestricted net assets) may be used to meet the County's ongoing obligations to citizen's and creditors. ➢ The County's net assets decreased by $613,779; $610,249 as a result of this year's operations and $3,530 as a result of a prior period adjustment. ➢ At September 30, 2009, the County's governmental funds reported combined ending fund balances of $4,780,939, a decrease of $596,570 in comparison with the prior year. ➢ At September 30, 2009, the unreserved fund balance of the general fund was $2,162,649, or 12,8 percent of total general fund expenditures. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The government -wide financial statements include the Statement of Net Assets and the Statement of Activities (on pages 9 and 10). These provide information about the activities of the County as a whole and present a longer -term view of the County's property and debt obligations and other financial matters. They reflect the flow of total economic resources in a manner similar to the financial reports of a business enterprise. Fund financial statements (on pages 12 & 15) report the County's operations in more detail than the government -wide statements by providing information about the County's most significant funds. For governmental activities, these statements tell how services were financed in the short term as well as what resources remain for future spending. They reflect the flow of current financial resources, and supply the basis for tax levies and the appropriations budget. The notes to the financial statements (starting on page 19) provide narrative explanations or additional data needed for full disclosure in the government -wide statements or the fund financial statements. The Budgetary Comparison Schedules (operating fund) are presented as required supplementary information on pages 38 and 39. 2 PRELIMINARY DRAFT Reporting the County as a Whole The Statement of Net Assets and the Statement of Activities The analysis of the County's overall financial condition and operations begins on page 9. Its primary purpose is to show whether the County is better off or worse off as a result of the year's activities. The Statement of Net Assets includes all the County's assets and liabilities at the end of the year while the Statement of Activities includes all the revenues and expenses generated by the County's operations during the year. These apply the accrual basis of accounting which is the basis used by private sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. All the County's assets are reported whether they serve the current year or future years. Liabilities are considered regardless of whether they must be paid in the current or future years. These two statements report the County's net assets and changes in them. The County's net assets (the difference between assets and liabilities) provide one measure of the County's financial health, or financial position. Over time, increases or decreases in the County's net assets are one indicator of whether its financial health is improving or deteriorating. To fully assess the overall health of the County, however, you should consider other factors as well, such as changes in the County's customers or its property tax base and the condition of the County's facilities. In the Statement of Net Assets and the Statement of Activities, the County has one kind of activity: ➢ Governmental activity - Most of the County's basic services are reported here, including the public safety, streets and highways, justice system, juvenile services, health and human services, culture and recreation, conservation and development and administration. Property taxes, grants, fees of office, automobile registration, sales tax and other taxes finance most of these activities. Reporting the County's Most Significant Funds Fund Financial Statements The fund financial statements on pages 12 & 15 provide detailed information about the most significant funds - not the County as a whole. ➢ Governmental funds - All of the County's basic services are reported in governmental funds. These use modified accrual accounting (a method that measures the receipt and disbursement of cash and all other financial assets that can be readily converted to cash) and report balances that are available for future spending. The governmental fund statements provide a detailed short-term view of the County's general operations and the basic services it provides. We describe the differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds in Note 2 to the financial statements. 3 PRELIMINARY DRAFT GOVERNMENT -WIDE FINANCIAL ANALYSIS Net assets of the County's governmental activities decreased from $47,704,943 to $47,091,164. Unrestricted net assets - the part of net assets that can be used to finance day -to -day operations without constraints established by debt covenants, enabling legislation, or other legal requirements was $4,017,164 at September 30, 2009. This decrease in governmental net assets was the result of five factors. First, the County's expenditures exceeded the revenues by $610,249. Second, the County acquired capital assets in the amount of $798,956. Third, the County issued long -term debt in the amount of $425,045 and retired long -tern debt of $1,424,737. Fourth, the County recorded depreciation in the amount of $1,828,323, Fifth, the County recorded a prior period adjustment of ($3,530) to Machinery & Equipment assets. Table I KERR COUNTY, TEXAS NET ASSETS in thousands Governmental Activities 2009 2008 Current and Other Assets $ 5,537 $ 5,826 Receivables 2,763 2,674 Other Noncurrent Assets 57 86 Capital Assets 44,868 46,107 Total Assets $ 53,225 $ 54,693 Long -Term Liabilities Accounts Payable $ 1,084 $ 872 Other Liabilities and Deferred Revenue 39 105 Short-term Debt (Due Within One Year) 1,345 1,310 Long -term Debt 3,666 4,701 Total Liabilities $ 6,134 $ 6,988 Net Assets: Invested in Capital Assets Net of Related Debt $ 40,456 $ 40,370 Restricted 2,618 2,803 Unrestricted 4,017 4,532 Total Net Assets $ 47,091 $ 47,705 4 PRELIMINARY DRAFT Table 1(7 KERR COUNTY, TEXAS CHANGES IN NET ASSETS in thousands Governmental Activities 2009 2008 Revenues: Program Revenue Charges for Services $ 4,012 $ 4,086 Operating Grants and Contributions 481 162 Capital Grants and Contributions 87 - General Revenues Property Taxes 14,984 12,778 Other Taxes 2,955 2,981 Grants and Contributions Not Restricted 1,038 644 Investment Earnings 77 238 Other General Revenues 232 1,287 Total Revenue $ 23,866 $ 22,176 Expenses: General Government $ 4,756 $ 4,026 Administration of Justice 4,768 4,103 Public Safety 5,086 4,476 Corrections 3,766 3,531 Health and Human Services 1,094 1,647 Community & Economic Development 1,225 1,107 Infrastructure & Environmental Services 3,598 3,198 Debt Expenditures 183 264 Total Expenses $ 24,476 $ 22,352 Increase (Decrease) in Net Assets $ (610) $ (176) Net Assets — Beginning 47,705 47,987 Prior Period Adjustment (4) (106) Net Assets - Ending $ 47,091 $ 47,705 5 PRELIMINARY DRAFT The cost of all governmental activities this year was $24,475,737. However, the amount that our taxpayers ultimately financed for these activities through County taxes was only $14,983,819 because the other costs were paid by other taxes ($2,954,899), operating grants and contributions ($1,606,073), user charges ($4,011,352) investment earnings ($77,028) and other miscellaneous ($232,317). THE COUNTY'S FUNDS As the County completed the year, its governmental funds (as presented in the balance sheet on pages 12 and 13) reported a combined fund balance of $4,780,939, which is less than last year's total of $5,377,509. Included in this year's total change in fund balance is a decrease of $411,927 in the County's General Fund. The primary reason for the General Fund's decrease is because revenues were Tess than budgeted amounts. The Commissioner's Court adopted the General Fund and Road and Bridge Fund budgets. In the General Fund, actual revenues and expenditures were less than the budgeted amounts, resulting in a net negative variance of $441,023. In the Road and Bridge Fund, actual revenues and expenditures were less than the budgeted amounts, resulting in a net negative variance of $20,606. CAPITAL ASSET AND DEBT ADMINISTRATION At September 30, 2009, the County had the following amounts invested in capital assets, net of depreciation: CAPITAL ASSETS in thousands 2009 2008 Land $ 497 $ 497 Buildings & Improvements 15,188 15,131 Machinery & Equipment 9,666 9,373 Infrastructure 38,833 38,680 Total Capital Assets $ 64,184 $ 63,681 Accumulated Depreciation 19,313 17,574 Capital Assets, Net $ 44,871 $ 46,107 6 PRELIMINARY DRAFT This year's major additions included: Buildinjis and Improvements FEMA Trailer — Road and Bridge Department $ 3,000 Air Conditioner Units — Jail 24,900 Horse Stall Covers - Ag Barn 1,300 Courthouse & Ag Barn Electrical 27,820 Machinery and Equipment 2009 Ford F150 - Custodial Department 17,523 Radio Equipment — Sheriff Dept 89,453 Mazda M3H — Sheriff Department 19,750 (2) 2009 Ford Crown Victoria — Sheriff Department 74,304 2008 Chevrolet Van — Extension Service 20,878 2008 Ford F150 Crew Cab - HC Youth Exhibition 19,498 2007 Dodge Ram Pickup — HC Youth Exhibition 22,049 Kioti Tractor — Maintenance Department 18,500 John Deere Gator — Maintenance Department 6,100 65E Motorgrader — Road and Bridge Department 117,962 (2) 2008 Chevy C7500 Dump Trucks — Road and Bridge Department 142,068 (2) 2009 Oil Tackers with Trailers — Road and Bridge Department 21,240 Rock Auger — Road and Bridge Department 3,200 Hydraulic Side Loader — Road and Bridge Department 11,703 Road Surfacing — Road and Bridge Department 153,120 Various Other Equipment 4,588 TOTALS $ 798,956 More detailed information about the County's capital assets is presented in Note 3.D. to the financial statements. DEBT At September 30, 2009, the County had the following outstanding debt: OUTSTANDING DEBT in thousands 2009 2008 Certificates of Obligation $ 3,550 $ 4,515 Notes Payable 436 642 Capital Leases 426 525 Total Outstanding Debt $ 4,412 $ 5,682 For governmental activities, the County had $4,411,960 in certificates of obligation and other long -term debt outstanding, a decrease of 22.4 percent. The County paid $1,365,796 in principal on the outstanding long -term debt, and issued $95,182 in capital lease obligations. More detailed information about the County's long -term liabilities is presented in Note 3.F. to the financial statements. 7 PRELIMINARY DRAFT ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES The County's elected and appointed officials considered many factors when setting the fiscal -year 2010 budget and tax rates. The major factors are the economy, population growth, and assessed property valuation. These indicators were taken into account when adopting the General Fund budget for 2010. Amounts available for appropriation in the General Fund budget are $18,216,571 and expenditures are estimated to be $18,100,108. If these estimates are realized, the County's budgetary General fund balance is expected to increase $116,463 by the close of 2010. Amounts available for appropriation in the Road and Bridge Fund budget are $2,797,469 and expenditures are estimated to be $2,844,042. If these estimates are realized, the County's budgetary Road and Bridge fund balance is expected to decrease $46,573 by the close of 2010. The total budget for capital expenditures is $4,850,000 for fiscal year 2010. The expenditures include construction of a building for Adult Probation and Sheriff; water line, master airport study and construction of hangers for the Airport; dredging and repair of dams at Ingram and Flat Rock Parks; equipment for the IT Department; air conditioners, scanners and a van with equipment for the County Jail; furnishings for the Hill Country Youth Exhibit Center; (2) front end loaders and other heavy equipment for the Road and Bridge Department; (10) patrol cars with equipment for the Sheriff's department; E -scans and pollbooks for the Elections Services Department; Radio equipment for all the Constables, the Sheriff Department; the Security Department, and the Environmental Health Department; safety equipment for the Main Courthouse; (2) Ford F150 Trucks for the Maintenance Department and Ag Barn; and pay off existing leases on Sheriff Department Tahoes and Crown Victorias and Extension Service Van. CONTACTING THE COUNTY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the County's finances and to show the County's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the County Auditor or Commissioners' Court at the Kerr County offices in Kerrville, Texas. 8 PRELIMINARY DRAFT BASIC FINANCIAL STATEMENTS PRELIMINARY DRAFT - V KERR COUNTY EXHIBIT A -1 STATEMENT OF NET ASSETS SEPTEMBER 30, 2009 Primary Government Governmental Activities ASSETS Cash and Cash Equivalents $ 5,536,775 Receivables (net of allowance for uncollectibles) 836,765 Court Fees and Fines Receivable 1,901,235 Due from Others 25,000 Prepaid Items 37,808 Capitalized Debt Issuance Costs 19,682 Capital Assets: Land 497,457 Infrastructure, net 33,998,610 Buildings, net 8,938,723 Machinery and Equipment, net 1,432,950 Total Assets 53,225,005 LIABILITIES Accounts Payable 1,084,110 Accrued Interest Payable 38,012 Deferred Revenues 750 Noncurrent Liabilities Due Within One Year 1,345,114 Due in More Than One Year 3,665,855 Total Liabilities 6,133,841 NET ASSETS Invested in Capital Assets, Net of Related Debt 40,455,780 Restricted for; Special Revenue 1,733,414 Debt Service 74,490 Capital Projects 810,386 Unrestricted Net Assets 4,017,094 Total Net Assets $ 47,091,164 The notes to the Financial Statements are an integral part of this statement. 9 PRELIMINARY DRAFT KERR COUNTY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2009 Program Revenues Operating Charges for Grants and Expenses Services Contributions Primary Government: GOVERNMENTAL ACTIVITIES: General Government $ 4,756,236 $ 105,247 $ 20,000 Administration of Justice 4,767,520 2,227,845 271,439 Public Safety 5,085,971 228,639 97,511 Corrections 3,766,442 424,352 - Health and Human Services 1,093,762 29,034 63,119 Community and Economic Development 1,225,488 - - Infrastructure and Environmental 3,597,638 996,235 28,857 Debt Interest 161,818 - - Fiscal Agent's Fees 1,181 - - Issuance Costs 19,681 - - TOTAL PRIMARY GOVERNMENT: $ 24,475,737 $ 4,011,352 $ 480,926 General Revenues: Taxes: Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Other Taxes Grants and Contributions Not Restricted Miscellaneous Revenue Investment Earnings Total General Revenues Change in Net Assets Net Assets -- Beginning Prior Period Adjustment Net Assets -- Ending The notes to the Financial Statements are an integral part of this statement, 10 PRELIMINARY DRAFT EXHIBIT B -1 Net (Expense) Revenue and Changes in Net Assets Capital Primary Government Grants and Governmental Contributions $ - $ (4,630,989) (2,268,236) (4,759,821) (3,342,090) (1,001,609) (1,225,488) 86,850 (2,485,696) (161,818) (1,181) (19,681) $ 86,850 (19,896,609) 13,654,065 1,329,754 2,954,899 1,038,297 232,317 77,028 19,286,360 (610,249) 47,704,943 (3,530) $ 47,091,164 11 PRELIMINARY DRAFT KERR COUNTY BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2009 Road and Indigent General Bridge Health Care Fund Fund Fund ASSETS Cash and Cash Equivalents $ 2,792,479 $ 404,572 $ 694,422 Interest Receivable - investments 2,107 - - Taxes Receivable 415,054 51,127 35,131 Allowance for Uncollectible Taxes (credit) (20,753) (2,556) (1,757) Intergovernmental Receivables 224,131 178 Due from Insurance Company 25,000 - - Prepaid Items 26,297 3,758 - Total Assets $ 3,464,315 $ 456,901 $ 727,974 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ 906,720 $ 88,518 $ 35,426 Deferred Revenues 394,946 48,571 33,374 Total Liabilities 1,301,666 137,089 68,800 Fund Balances: Unreserved and Undesignated: Reported in the General Fund 2,162,649 - - Reported in the Special Revenue Fund - 319,812 659,174 Reported in the Debt Service Fund - - - Reported in the Capital Projects Fund - - - Total Fund Balances 2,162,649 319,812 659,174 Total Liabilities and Fund Balances $ 3,464,315 $ 456,901 $ 727,974 The notes to the Financial Statements are an integral part of this statement. 12 PRELIMINARY DRAFT EXHIBIT C -1 Capital Total Projects Other Govemmental Fund Funds Funds $ 798,433 $ 846,869 $ 5,536,775 - 2,107 99,266 600,578 (4,858) (29,924) 39,695 264,004 25,000 7,753 37,808 $ 798,433 $ 988,725 $ 6,436,348 $ 5,231 $ 48,215 $ 1,084,110 94,408 571,299 5,231 142,623 1,65 5,409 2,162,649 754,428 1,733,414 74,490 74,490 793,202 17,184 810,386 793,202 846,102 4,780,939 $ 798,433 $ 988,725 $ 6,436,348 13 PRELIMINARY DRAFT EXHIBIT C -2 KERR COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS SEPTEMBER 30, 2009 Total Fund Balances - Governmental Funds $ 4,780,939 Capital assets used in governmental activities are not financial resources and 40,028,285 therefore are not reported in governmental funds. At the beginning of the year, the cost of these assets was $63,682,114 and the accumulated depreciation was $17,574,507. In addition, long -term liabilities, including bonds payable, are not due and payable in the current period, and, therefore are not reported as liabilities in the funds. The net effect of including the beginning balances for capital assets (net of depreciation) and long -term debt in the governmental activities is to increase net assets. Current year capital outlays and long -term debt principal payments are expenditures 2,069,570 in the fund financial statements,but they should be shown as increases in capital assets and reductions in long -term debt in the government -wide financial statements. The net effect of including the 2009 capital outlays and debt principal payments is to increase net assets. The 2009 depreciation expense increases accumulated depreciation. The net effect of the current year's depreciation is to decrease net assets. (1,828,323) Various other reclassifications and eliminations are necessary to convert from the 2,040,693 modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, eliminating interfund transactions, reclassifying the proceeds of bond sales as an increase in bonds payable, and recognizing the liabilities associated with maturing long -term debt and interest. The net effect of these reclassifications and recognitions is to increase net assets. Net Assets of Governmental Activities $ 47,091,164 The notes to the Financial Statements are an integral part of this statement. 14 PRELIMINARY DRAFT KERR COUNTY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2009 Road and Indigent General Bridge Health Care Fund Fund Fund REVENUES: Taxes: Property Taxes $ 10,449,487 $ 1,136,194 $ 835,321 Other Taxes, Licenses, Permits 2,954,899 - - Automobile Registration - 996,235 - Intergovernmental Revenue and Grants 403,923 28,857 58,973 Fees of Office 1,888,650 434,934 - Fines and Forfeitures 332,158 6,670 - Investment Earnings 65,649 751 472 Other Revenue 348,095 9,803 24,853 Total Revenues 16,442,861 2,613,444 919,619 EXPENDITURES: Current: General Government 3,890,996 - - Administration of Justice 4,230,924 - - Public Safety 4,222,161 - - Corrections 2,670,197 - - Health and Human Services 562,004 - 513,273 Community and Economic Development 699,886 - - Infrastructure and Environmental 298,965 2,466,675 - Debt Service: Debt Principal 116,103 79,012 - Debt Interest 10,396 18,067 - Fiscal Agent's Fees - - - Capital Outlay: General Government 15,757 - - Administration of Justice 1,357 - - Public Safety 75,474 - Community and Economic Development 87,706 - Infrastructure and Environmental 880 227,441 - Corrections 24,900 - - Health and Human Services 2,414 - - Total Expenditures 16,910,120 2,791,195 513,273 Excess (Deficiency) of Revenues Over (Under) (467,259) (177,751) 406,346 Expenditures - - - -- OTHER FINANCING SOURCES (USES): Proceeds from Capital Leases 74,304 - - Non- Current Loans 20,878 - - Transfers In - - - Insurance Proceeds 12,150 - - Transfers Out (Use) (52,000) - - Total Other Financing Sources (Uses) 55,332 - - Net Change in Fund Balances (411,927) (177,751) 406,346 Fund Balance - October 1 (Beginning) 2,574,576 497,563 252,828 Fund Balance - September 30 (Ending) $ 2,162,649 $ 319,812 $ 659,174 The notes to the Financial Statements are an integral part of this statement. 15 PRELIMINARY DRAFT EXHIBIT C -3 Capital Total Projects Other Governmental Fund Funds Funds - $ 2,462,297 $ 14,883,299 2,954,899 996,235 1,114,320 1,606,073 252,968 2,576,552 24,091 362,919 8,480 1,676 77,028 44,087 426,838 8,480 3,899,439 23,883,843 174,580 4,065,576 520,147 4,751,071 410,825 4,632,986 1,015,882 3,686,079 1,075,277 467,387 1,167,273 92,475 2,858,115 1,170,681 1,365,796 199,537 228,000 1,181 1,181 221,829 8,347 245,933 1,357 569 76,043 16,046 - 103,752 70,924 299,245 24,900 2,747 - 5,161 240,622 4,132,535 24,587,745 (232,142) (233,096) (703,902) 74,304 20,878 136,141 136,141 12,150 (84,141) (136,141) 52,000 107,332 (232,142) (181,096) (596,570) 1,025,344 1,027,198 5,377,509 $ 793,202 $ 846,102 $ 4,780,939 16 PRELIMINARY DRAFT EXHIBIT C -4 KERR COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2009 Total Net Change in Fund Balances - Governmental Funds $ (596,570) Current year capital outlays and long -tern debt principal payments are expenditures in 2,069,570 the fund financial statements, but they should be shown as increases in capital assets and reductions in long -term debt in the government -wide financial statements. The net effect of removing the 2009 capital outlays and debt principal payments is to increase net assets. Depreciation is not recognized as an expense in governmental funds since it does not (1,828,323) require the use of current financial resources. The net effect of the current year's depreciation is to decrease net assets. Various other reclassifications and eliminations are necessary to convert from the (254,926) modified accrual basis of accounting to accrual basis of accounting. These include recognizing deferred revenue as revenue, adjusting current year revenue to show the revenue earned from the current year's tax levy, eliminating interfund transactions, reclassifying the proceeds of bond sales, and recognizing the liabilities associated with maturing long -term debt and interest. The net effect of these reclassifications and recognitions is to increase net assets. Change in Net Assets of Governmental Activities $ (610,249) The notes to the Financial Statements are an integral part of this statement. 17 PRELIMINARY DRAFT EXHIBIT E -1 KERR COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS SEPTEMBER 30, 2009 Agency Funds ASSETS Cash and Cash Equivalents $ 672,803 Due from Others 4,956 Total Assets $ 677,759 LIABILITIES Accounts Payable $ 930 Due to Other Governments 122,119 Due to Others 554,710 Total Liabilities $ 677,759 The accompanying notes are an integral part of this statement. 18 PRELIMINARY DRAFT KERR COUNTY, TEXAS NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2009 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Kerr County have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental accounting and financial reporting principles. The more significant of the government's accounting policies are described below: 1.A. REPORTING ENTITY The County has developed criteria to determine if the activities of any outside agencies or organizations should be included within its financial statements. The criteria includes the amount of oversight responsibility exercised by the County over the activities of an agency or organization, the scope of public service of an agency or organization, and the nature of any special financing relationships which may exist between the County and an agency or organization. Oversight responsibility includes financial interdependency, selection of the governing authority, designation of management, the ability to significantly influence operations, and accountability for fiscal matters. The County's financial statements include all funds over which the County exercises oversight responsibility. Also, the County is not included as a part of any other reporting entity. 1.B. BASIS OF PRESENTATION Government -wide Financial Statements: The Statement of Net Assets and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business -type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business -type activities are financed in whole or in part by fees charged to external parties for goods or services. Fund Financial Statements: 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 expenditure /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. a. 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 b. Total assets, liabilities, revenues, or expenditure /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. 19 PRELIMINARY DRAFT The funds of the financial reporting entity are described below: Governmental Funds General Fund The General Fund, the primary operating fund of the County, is always classified as a major fund. It is the basic fund of the County and covers all activities for which a separate fund has not been established. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Debt Service Funds The Debt Service Fund accounts for the accumulation of financial resources for and the payment of principal and interest on general long -term debt of the County other than debt service payments made by enterprise funds. Ad valorem taxes are used for the payment of principal and interest on the County's debt. Capital Projects Fund The Capital Projects Fund is used to account for proceeds of general long -term debt and other revenues. Expenditures are restricted to the construction and acquisition of major capital facilities. Fiduciary Funds (Not included in government -wide statements) Agency Funds Agency funds account for assets held by the County in a purely custodial capacity. Since Agency funds are custodial in nature (i.e., assets equal liabilities), they do not involve the measurement of results of operations. Major and Nonmajor Funds The funds are further classified as major or nonmajor. The major funds are as follows: Major Fund Brief Description General Fund See above for description. Special Revenue Funds: Road and Bridge Fund Accounts for all road and bridge construction and maintenance activity. Indigent Health Care Fund Accounts for all indigent health care revenue (ad valorem taxes and tobacco settlement funds) and expenditures. Capital Projects Fund: Accounts for all Capital Projects activity. Nonmajor funds consist of special revenue funds, debt service funds, and capital project funds. 20 PRELIMINARY DRAFT 1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government -wide Statement of Net Assets and the Statement of Activities, both governmental and business -like activities are presented using the economic resources measurement focus as defined below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate: a. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. Agency and Permanent Trust Funds are not involved in the measurement of results of operations; therefore, measurement focus is not applicable to them. Basis of Accounting In the government -wide Statement of Net Assets and Statement of Activities, governmental activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expense, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statement, governmental funds and agency funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized revenues when both "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectable within the current period or within 60 days after year end. Also under the modified accrual basis of accounting, expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported as expenditures in the year due. 1.D. ASSETS, LIABILITIES AND EQUITY Cash and Cash Investments For the purpose of the Statement of Net Assets, "Cash and Cash Equivalents" includes demand deposit accounts, certificates of deposit and government investment pools. All amounts are considered available upon demand and are considered to be "cash equivalents." Several funds may be invested in an investment account and each fund has an equity interest therein. Interest earned on the Investment of these monies is allocated based upon relative equity at month end. 21 PRELIMINARY DRAFT Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year 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). All other outstanding balances between funds are reported as "due to /from other funds." All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 60 days comprise the trade accounts receivable allowance for uncollectibles. Ad valorem property taxes attach as enforceable liens as of January 1. Taxes are levied prior to September 30, payable on October 1, and are delinquent on February 1. The majority of the County's property tax collections occur during December and early January each year. To the extent that County property tax revenue results in current receivables as defined by the Governmental Accounting Standards Board (GASB), they are recognized when levied. Capital Assets Government -wide Statements Capital assets, which include property, plant, equipment and infrastructure assets (e.g. roads, bridges, sidewalks and similar items) are reported in the governmental activities column in the government -wide financial statements. The County defines capital assets as assets with an initial, individual cost of more than $1,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment is depreciated using the straight -line method over the following estimated useful lives: Assets Years Buildings and Improvements 25 — 50 Improvements 10 — 50 Furniture and Equipment 3 — 20 Infrastructure 25 — 50 Fund Financial Statements In the fund financial statements, fixed assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. 22 PRELIMINARY DRAFT Compensated Absences Full time and regular part time employees who work 20 hours per week or more are granted vacation benefits in varying amounts to specified maximums depending on tenure with the County. Sick leave accrues to full time and regular part time employees to specified maximums. Accumulated vacation time may be taken in pay upon termination or retirement up to a maximum of twenty (20) days; however, this policy does not apply to accumulated sick leave. Sick leave accrues to full time employees to specified maximums; however neither the vacation or comp time accrual policy applies to accumulated sick leave. The liability for accrued compensated absences is not accrued in governmental funds using the modified accrual basis of accounting, but is reflected in the Government -Wide Statement of Net Assets. Long -term Obligations In the government -wide financial statements, long -term debt and other long -term obligations are reported as liabilities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Equity Classifications Government -wide Statements Equity is classified as net assets and displayed in three components: a. 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. b. Restricted net assets — Consists of net assets with constraints placed on the use either by (1) external groups such as creditors, grantors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted net assets — All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt." Fund Statements Governmental fund equity is classified as fund balance. Fund balance is further classified as reserved and unreserved, with unreserved further split between designated and undesignated. Use of Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual amounts could differ from those estimates. 23 PRELIMINARY DRAFT 1.E. REVENUES, EXPENDITURES AND EXPENSES Property Taxes Property taxes are levied by October 1, in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1, of the year following the year in which imposed. On January 1, of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed. For the 2008 tax roll, the total assessed valuation was $3,619,382,250 and the taxes assessed amounted to $15,538,008. The total tax rate was $.4293 per $100 valuation and allocated $.3592 to the General Fund and $.0379 to the Debt Service Funds and .0322 to the Road and Bridge Fund. The maximum tax levy allowed by State law for the above purposes is $.80 per $100 valuation. In the fund financial statements, property taxes are recorded as revenue in the period levied to the extent they are collected within 60 days of year -end. Due to the immaterial amount of additional property taxes receivable after the 60 -day period, no additional accrual is made in the government - wide financial statements. Expenditures/Expenses In the government -wide financial statements, expenses are classified by function for governmental activities. In the fund financial statements, expenditures are classified as follows: Governmental Funds - by Character: Current (further classified by function) Debt Service Capital Outlay In the fund financial statements, governmental funds report expenditures of financial resources. Interfund Transfers Permanent reallocation of resources between funds of the reporting entity is classified as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information The County Judge and staff prepare the proposed budget, using revenue estimates furnished by the County Auditor. The proposed budget is then submitted to Commissioners Court for a public hearing. Before determining the final budget, Commissioners Court may increase or decrease the amounts requested by the various departments. In the final budget, which is usually adopted in September, expenditures for current operating funds cannot exceed the estimated available cash balances in such funds on October 1, plus the estimate of revenues for the ensuing year. At any time during the year, Commissioners Court may increase the budget for unexpected revenues. Commissioners Court may transfer amounts among individual budget line items within major expenditure categories during the year, but no such transfer may increase the overall total of the budget. Formal budgetary integration is employed for the General, Special Revenue, Debt Service and Capital Projects Funds. Budgets for these funds are prepared on a cash basis. Unused appropriations lapse at the end of each year. 24 PRELIMINARY DRAFT NOTE 3 - DETAILED NOTES ON ALL FUNDS 3.A. DEPOSITS AND INVESTMENTS The funds of the County must be deposited and invested under the terms of a contract, contents of which are set out in the Depository Contract Law. The depository bank places approved pledged securities for safekeeping and trust with the County's agent bank in an amount sufficient to protect County funds on a day -to -day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation ( "FDIC ") insurance. At September 30, 2009, the carrying amount of the County's deposits was $953,915 and the bank balance was $1,163,216. The County's cash deposits held at Security State Bank and Trust at September 30, 2009 and during the year ended September 30, 2009 were entirely covered by FDIC insurance or by pledged collateral held by the County's agent bank in the County's name. The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the County to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar- weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, (9) and bid solicitation preferences for certificates of deposit. Statutes authorize the County to invest in (1) obligations of the U.S. Treasury, certain U.S. agencies, and the State of Texas, (2) certificates of deposit, (3) certain municipal securities, (4) money market savings accounts, (5) repurchase agreements, (6) bankers acceptances, (7) Mutual funds, (8) Investment pools and guaranteed investment contracts. The Act also requires the County to have independent auditors perform test procedures related to investment practices as provided by the Act. The County's deposits and temporary investments at September 30, 2009 are shown below: Carrying Market FDIC Pledged Fiduciary/Type of Deposit Amount Value Coverage Securities Security State Bank & Trust Depository Bank Demand Deposit Accounts $ 953,915 $ 953,915 $ 250,000 $ 8,692,110 Certificate of Deposit 1,000,000 1,000,000 250,000 750,000 Texas Security Bank Money Market Account 246,420 246,420 246,420 - Texas Capital Bank Certificate of Deposit 245,000 245,000 245,000 - Hill Crest Bank Certificate of Deposit 245,000 245,000 245,000 - TEXPOOL Liquid Asset Portfolio 2,846,440 2,846,440 Total Governmental Activities $ 5,536,775 $ 5,536,775 $ 1,236,420 $ 9,442,110 25 PRELIMINARY DRAFT * The investment in Texpool is considered a government pool investment. Government pool investments are not categorized in accordance with GASB Statement No. 3, because they are not evidenced by securities that exist in physical or book entry form. Also, investments in government investment pools are not required to disclose custodial credit risk, concentration of credit risk and interest rate risk in accordance with GASB Statement No. 40. Policies Governing Deposits and Investments In compliance with the Public Funds Investment Act, the County has adopted a deposit and investment policy. That policy does address the following risks: Custodial Credit Risk - Deposits: This is the risk that in the event of bank failure, the County's deposits may not be returned to it. The County was not exposed to custodial credit risk since its deposits at year -end were covered by depository insurance or by pledged collateral held by the County's agent bank in the County's name. Custodial Credit Risk - Investments: This is the risk that, in the event of the failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The County's investments (certificates of deposit) were secured by FDIC insurance and pledged securities. Other Credit Risk: There is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. At September 30, 2009, the County was not exposed to concentration of credit risk, interest rate risk or foreign currency risk. For the year ended September 30, 2009, the County complied in all material respects with the requirements of the Public Funds Investment Act and with local policies. 3.B. RECEIVABLES Receivables as of year -end for the government's individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Governmental Funds Road Indigent Other and Health Governmental General Bridge Care Funds TOTAL Receivables: Property Taxes $ 415,054 $ 51 ,127 $ 35, 131 $ 99,266 $ 600,578 Interest 2,107 - - - 2,107 Intergovernmental 224,131 - 178 39,695 264,004 Other 25,000 - - - 25,000 Gross Receivables $ 666,292 $ 51,127 $ 35,309 $ 138,961 $ 891,689 Less: Allowance for Uncollectibles 20,753 2,556 1,757 4,858 29,924 Net Total Receivables $ 645,539 $ 48,571 $ 33,552 $ 134,103 $ 861,765 26 PRELIMINARY DRAFT Governmental funds report deferred revenue in connection with receivables for revenue that is not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, deferred revenues reported in the governmental funds were as follows: General Fund - Delinquent Property Taxes Receivable $ 394,301 Other Receivables 645 Road and Bridge Fund - Delinquent Property Taxes Receivable 48,571 Indigent Health Care Fund - Delinquent Property Taxes Receivable 33,374 Other Governmental Funds - Delinquent Property Taxes Receivable 94,408 TOTAL DEFERRED REVENUES $ 571,299 3.C. COURT FINES AND FEES RECEIVABLE The County has determined the amount of court fines and fees receivable at September 30, 2009 to be $1,901,235 which represents amounts owed and outstanding for the last 10 years. This receivable is included on the government wide statement of net assets and is net of an allowance for uncollectible court fines and fees based on historical collection rates for the various courts. 3D. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2009, was as follows: Primary Government Balance Prior Period Balance 10/1/08 Increases Decreases Adjustments 9/30/09 Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 497,457 $ - $ - $ - $ 497,457 Capital Assets, Being Depreciated: Buildings and Improvements 15,131,264 57,020 - 15,188,284 Furniture and Equipment 9,373,760 588,816 (292,751) (3,530) 9,666,295 Infrastructure 38,679,333 153,120 - - 38,832,453 Total Capital Assets Being Depreciated 63,184,357 798,956 (292,751) (3,530) 63,687,032 Less Accumulated Depreciation: Buildings and Improvements (5,877,408) (372,153) - - (6,249,561) Furniture and Equipment (7,300,230) (1,019,196) 86,081 - (8,233,345) Infrastructure (4,396,869) (436,974) - - (4,833,843) Total Accumulated Depreciation (17,574,507) (1,828,323) 86,081 - (19,316,749) Total Capital Assets Being Depreciated, Net 45,609,850 (1,029,367) (206,670) (3,530) 44,370,283 Governmental Activities Capital Assets, Net $ 46,107,307 $ (1,029,367) (206,670) (3,530) $ 44,867,740 The County recorded a prior period adjustment of ($3,530) for the retroactive reduction of furniture and equipment assets. 27 PRELIMINARY DRAFT Depreciation expense was charged to functions /programs of the County as follows: Governmental Activities: General Government $ 431,734 Public Safety 454,627 Administration of Justice 20,457 Community & Economic Development 56,085 Health and Human Services 19,083 Corrections 63,268 Infrastructure & Environmental 783,069 Total Depreciation Expense - Governmental Activities $ 1,828,323 3.E. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Transfers In Transfers Out General Fund $ - $ 52,000 Road and Bridge Fund - - Nonmajor Special. Revenue 71,000 19,000 Funds Nonmajor Debt Service Funds 65,141 65,141 TOTAL $ 136,141 136,141 Transfers are used to 1) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due, 2) move restricted amounts from borrowings to the debt service fund to establish mandatory reserve accounts, 3) move unrestricted general fund revenues to finance various programs that the government must account for in other fiends in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs. 3.F. LONG -TERM LIABILITIES The following is a summary of the long -term liability transactions of the County for the year ended September 30, 2009. Balance Balance Due Within Type of Debt 10/01/08 Issued Retired 9/30/09 One Year Governmental Activities: Limited Tax General $ 1,970,000 $ - $ 455,000 $ 1,515,000 $ 480,000 Obligation Series 1994 Public Property Finance - - Contractual Obligation 2001 Certificates of Obligation 765,000 - 375,000 390,000 390,000 Series 2005 Tax Notes Series 2009 1,780,000 - 135,000 1,645,000 135,000 Bank of America Note Payable 642,149 - 205,681 436,468 213,939 Capital Lease Obligations 525,425 95,182 195,115 425,492 126,175 SUBTOTAL 5,682,574 95,182 1,365,796 4,411,960 1,345,114 28 PRELIMINARY DRAFT Balance Balance Due Within Type of Debt 10/01/08 Issued Retired 9/30/09 One Year Other Post - employment benefits - 315,730 58,941 256,789 - Compensated Absences 328,087 14,133 - 342,220 - SUBTOTAL 328,087 329,863 58,941 599,009 - TOTAL $ 6,010,661 $ 425,045 $ 1,424,737 $ 5,010,969 $ 1,345,114 Balance at Due Within Certificates of Obligation and Notes Payable 9/30/09 One Year Limited Tax General Obligation Bonds, Series 1994 Original issue amount $5,900,000, interest rates of 4.25% to 6.25 %, with final maturity February 15, 2012 $ 1,515,000 $ 480,000 Certificates of Obligation, Series 2005 Original issue amount $2,000,000, interest rates of 3.25% to 3.50 %, with final maturity date February 15, 2010 390,000 390,000 Bank of America Note for purchase of computer software dated May 1, 2006, principal and interest payment of $231,463, interest rate is 4.015 %, final maturity date of March 16, 2011 436,468 213,939 Tax Notes, Series 2008 Original issue amount $1,780,000, interest rates of 3.30 %, With final maturity date February 15, 2013 1,645,000 135,000 TOTAL CERTIFICATES OF OBLIGATION AND NOTES PAYABLE $ 3,986,468 $ 1,218,939 The annual requirements for principal and interest on the outstanding certificates of obligation and notes payable are as follows: Year Ending Annual September 30, Principal Interest Requirements 2010 $ 1,218,939 $ 130,108 $ 1,349,047 2011 862,529 89,795 952,324 2012 665,000 54,410 719,410 2013 1,240,000 20,460 1,260,460 TOTAL $ 3,986,468 $ 294,773 $ 4,281,241 29 PRELIMINARY DRAFT Balance at Due Within Capital Lease Obligations 9/30/08 One Year Security State Bank & Trust: Capital lease obligation for (2) Motor Graders and (1) Wheel Loader dated December 27, 2006, annual principal and interest payments of $45,637, interest rate of 4.82 %, final maturity date December 27, 2013. $ 197,583 $ 35,758 Capital lease obligation for a 2008 Chevy Van dated December 22, 2008, annual principal and interest payments of $7,523, interest rate of 4.00 %, final maturity date December 22, 2011. 20,878 6,688 Caterpillar Financial Services:, Capital lease obligation for (2) Caterpillar 420D Backhoe Loaders dated April 28, 2006, annual principal and interest payments of $23,368, interest rate of 5.35 %, final maturity April, 2011. 85,752 19,260 Ford Motor Credit Corporation: Capital lease obligation for four (4) 2007 Crown Victoria Police Sedans dated March 9, 2007, annual principal and interest payments of $37,332, interest rate of 6.60 %, final maturity date March 9, 2009. 35,021 35,021 Capital lease obligation for three (3) 2008 Chevrolet Tahoe's Sheriff Vehicles dated January 24, 2008, annual principal and interest payments of $34,027, interest rate of 6.10 %, final maturity date January 24, 2011. 62,297 30,277 Capital lease obligation for two (2) 2008 Crown Victoria Police Sedans dated February 5, 2008, annual principal and interest payments of $23,357, interest rate of 6.10 %, final maturity date February 5, 2010. 10,914 10,914 Capital lease obligation for two (2) 2009 Crown Victoria Police Sedans dated December 12, 2008, annual principal and interest payments of $26,236, interest rate of 6.05 %, final maturity date December 12, 2010. 48,068 23,328 TOTAL CAPITAL LEASE OBLIGATIONS $ 425,492 $ 126,175 A summary of the future minimum lease payments under the lease along with the present value of the minimum lease payments as of September 30, 2009 follows: Year Ended September 30 2010 $ 148,225 2011 181,777 2012 53,170 2013 45,637 2014 45,637 Total Minimum Lease Payments $ 474,446 Less Amount Representing Interest 48,954 Present Value of Lease Payments $ 425,492 30 PRELIMINARY DRAFT 3.G. EMPLOYEE RETIREMENT PLAN Plan Description Kerr County provides retirement, disability, and death benefits for all of its full -time employees through a nontraditional defined benefit pension plan in the statewide Texas County and District Retirement System (TCDRS). The Board of Trustees of TCDRS is responsible for the administration of the statewide agent multiple- employer public employee retirement system consisting of 586 nontraditional defined benefit pension plans. TCDRS in the aggregate issues a comprehensive annual financial report (CAFR) on a calendar year basis. The CAFR is available upon written request from the TCDRS Board of Trustees at P.O. Box 2034, Austin, Texas 78768- 2034. The plan provisions are adopted by the governing body of the County, within the options available in the Texas state statutes governing TCDRS (TCDRS Act). Members can retire at ages 60 and above with 8 or more years of service, with 30 years of service regardless of age, or when the sum of their age and years of service equals 75 or more. Members are vested after 8 years of service but must leave their accumulated contributions in the plan to receive any employer- financed benefit. Members who withdraw their personal contributions in a lump sum prior to retirement are not entitled to any amounts contributed by their employer. Partial lump sum distributions are allowed at retirement. Benefit amounts are determined by the sum of the employee's contributions to the plan, with interest, and employer - financed monetary credits. The level of these monetary credits is adopted by the governing body of the County within the actuarial constraints imposed by the TCDRS Act so that the resulting, benefits can be expected to be adequately financed by the employer's commitment to contribute. At retirement, death, or disability, the benefit is calculated by converting the sum of the employee's accumulated contributions and the employer - financed monetary credits to a monthly annuity using annuity purchase rates prescribed by the TCDRS Act. Funding Policy Kerr County has elected the annually determined contribution rate (variable rate) plan provisions of the TCDRS Act. The plan is funded by monthly contributions from both employee members and the County based on the covered payroll of employee members. Under the TCDRS Act, the contribution rate of the employer is actuarially determined annually. The County contributed using the actuarially determined rate of 10.05% for the months of the accounting year in 2009 and 9.08% for the months of the accounting year in 2008. The contribution rate payable by the employee members for calendar year 2009 is the rate of 7 %, as adopted by the governing body of the County. For calendar year 2008, the employee contribution rate was also 7 %. The employee and the employer contribution rate may be changed by the governing body of the County within the options available in the TCDRS Act. Annual Pension Cost For Kerr County's accounting year ended September 30, 2009, the annual pension cost for the TCDRS plan for its employees was $1,239,952, and the actual contributions were $1,239,952 The annual required contributions were actuarially determined as a percent of the covered payroll of the participating employees, and were in compliance with the GASB Statement No. 27 parameters based on the actuarial valuation as of December 31, 2008 and December 31, 2007, the basis for determining the contribution rate for calendar years 2009 & 2008. The December 31, 2008 actuarial 31 PRELIMINARY DRAFT valuation is the most recent valuation. ACTUARIAL VALUATION INFORMATION Actuarial valuation date 12/31/08 12/31/07 12/31/06 Actuarial cost method entry age entry age entry age Amortization method level percentage level percentage level percentage of payroll, closed of payroll, closed of payroll, closed Amortization period 20 15 15 Asset valuation method SAF: 10 -yr SAF: 10 -yr SAF: 10 -yr smoothed value smoothed value smoothed value ESF: Fund value ESF: Fund value ESF: Fund value Actuarial Assumptions: Investment return' 8% 8% S% Projected salary increases' 5.3% 5.3% 5.3% Inflation 3,5% 3.5% 3.5% Cost -of- living adjustments 0.0% 0.0% 0.0% 'Includes inflation at the stated rate TREND INFORMATION FOR THE RETIREMENT PLAN FOR THE EMPLOYEES OF KERR COUNTY Accounting Annual Percentage Net Year Pension of APC Pension Ending Cost (APC) Contributed Obligation 9/30/06 $ 741,520 100% -0- 9/30/07 800,621 100% -0- 9/30/08 821,096 100% -0- 9/3 0/09 1,239, 952 100% -0- SCHEDULE OF FUNDING PROGRESS FOR THE RETIREMENT PLAN FOR THE EMPLOYEES OF KERR COUNTY Actuarial UAAL as a Actuarial Value Accrued Annual Covered Percentage of Actuarial of Assets Liability (AAL) Unfunded AAL Funded Ratio Payroll Covered Payroll Valuation Date (a) (b) (UAAL) (b -a) (a/b) (c) Kb-a)/c] 12/31/03 $ 13,000,396 $ 15,187,317 $ 2,186,921 85.60% $ 8,020,926 27.27% 12/31/04 14,260,964 16,668,166 2,407,202 85.56% 8,870,350 27.14% 12/31/05 16,152,206 18,786,439 2,634,233 85.98% 9,247,537 28.49% 12/31/06 18,402,681 20,642,315 2,239,639 89.15% 9,320,152 24,03% 12/31/07 3 19,612,015 22,356,274 2,744,259 87.72% 9,954,080 27.57% 12/31/08 20,565,974 24,950,014 4,384,040 82.43% 10,805,642 40.57% I The annual covered payroll is based on the employee contributions received by TCDRS for the year ending with the valuation date, 2 Funding information may differ fiom prior year compliance data due to plan changes effective 1/1/2008. 3 Funding information may differ from prior year compliance data due to plan changes effective 1/1/2009, 32 PRELIMINARY DRAFT 3.H. INVESTMENT IN JOINT VENTURE The County and the City of Kerrville (the "participants ") operate a municipal airport under a joint venture agreement. Each participant provides financial support and is entitled to an undivided 50% interest in the physical property. Separate financial statements of the joint venture are not available. Following is a financial summary for the airport as of and for the year ended September 30, 2009: ASSETS REVENUES Cash $ 242,072 Charges for Services $ 727,552 Investments 494,412 Capital Grants & Contributions 22,671 Prepaid Expenses 505,598 Total Revenues 750,223 Nondepreciable Property Land 2,849,809 EXPENSES Construction in Progress 1,431,868 Airport Operations 667,225 Depreciable Property (Net) Terminal 12,234 Buildings 1,258,572 Depreciation 90,798 Improvements 214,805 Total Expenses 770,257 Vehicles 17,448 Machinery & Equipment 7,239 OPERATING INCOME (20,034) Total Assets 7,021,823 GENERAL REVENUES LIABILITIES Unrestricted Investment Earnings 2,639 Accounts Payable 32,196 (17,395) Customer Deposits 3,900 Unearned Revenue 8,027 Net Assets — Beginning (Restated) 6,995,095 Total Liabilities 44,123 Net Assets - Ending $ 6,977,700 NET ASSETS Invested in Capital Assets 5,779,741 Restricted for Capital Projects 454,573 Unrestricted 743,386 Total Net Assets $ 6,977,700 3.1. RISK MANAGEMENT Workers Compensation, Unemployment, and Property and Liability Coverage The County is exposed to various risks of loss related to torts; damage to and theft or destruction of assets; errors and omissions; injuries to employees; automobile liability and natural disasters. To reduce the risk of exposure in these areas, the County contracts in the form of interlocal agreements with risk pools created by the Texas Association of Counties (TAC). The County is a member of workers compensation, unemployment, and property and liability risk pools. The pools are public entity risk pools and were created based on the general objectives of formulating, developing and administering a program of self - insurance for the membership and obtaining lower costs for coverage. The pools have the power to establish fees, contributions and methods for establishing rates. Under contract with the pools, the TAC provides for such services as claims administration and management, underwriting, loss control services and training, and financial reporting for its members. The pools are governed by a board of directors made up of employees or officials of counties which are members of the pool. Member counties make contributions to the pools, and the pools provide insurance coverage and applicable reinsurance or stop loss coverage. Contributions are set annually and the interlocal agreements carry various deductibles and aggregate maximum loss totals. Liability by the County is generally limited to the amounts calculated by the County interlocal agreements. The by -laws and audited financial statements of the pools are detailed in separate documents and can be obtained from the Texas Association of Counties, 1210 San Antonio Street, Austin, TX 78701. The County has had no significant reduction in insurance coverage from prior years and the County has had no settlements which exceeded insurance coverage in the current or prior 33 PRELIMINARY DRAFT years. Self Insured Group Medical Insurance The County has elected to provide group medical benefits to their employees on a partially self - funded basis. They have contracted with an outside plan supervisor to administer all claims payments. The County sets a specific amount of money aside each month and as claims are submitted to the plan supervisor the County reimburses them when notified. Under this plan, the County is limited to $50,000 per employee per calendar year with an aggregate amount of $2,000,000 per year. After the deductible and aggregate amount, the balance is paid by a third party carrier. 3.J. COMMITMENTS AND CONTINGENCIES Operating Leases The reporting entity has entered into a number of operating leases, which contain cancellation provisions and are subject to annual appropriations. For the year ended September 30, 2009, rent expenditures approximated $75,615 for all types of operating leases. These expenditures were made primarily from the General Fund. Commitments under operating (non- capitalized) lease agreements for equipment provide for minimum future rental payments as of September 30, 2009, as follows: Year Ended September 30 2010 $ 70,034 2011 58,956 2012 44,187 2013 28,093 2014 13,634 Total Minimum Rentals $ 214,904 Grant Program Involvement In the normal course of operations, the County participates in various federal or state grant programs. The grant programs are often subject to additional audits by agents of the granting or funding agency, the purpose of which is to ensure compliance with the specific conditions of the grant. Any liability for reimbursement that may arise as a result of these audits cannot be reasonably determined at this time, although it is believed the amount, if any, would not be material. 3.K. RESTRICTED NET ASSETS Net assets restricted for debt service include the excess of assets over certain liabilities restricted for the debt service on revenue bonds. Net assets of governmental funds restricted by enabling legislation for the specific purpose of debt service total $74,490 at September 30, 2009. 3 .L. PRIOR PERIOD ADJUSTMENT The Government Wide Statement of Net Assets and the Government Wide Statement of Activities shows a net prior period adjustment of $3,530. This decrease in Net Assets was due to a prior period adjustment made to furniture, machinery and equipment for $3,530 in order to 34 PRELIMINARY DRAFT reclassify assets to expendable inventory. 3.M. POST- EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS During 2009, Kerr County adopted GASB Statement No. 45 (GASB 45) Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. GASB 45 establishes standards for the measurement, recognition, and display of other post - employment benefit costs (OPEB), contributions, related liabilities and assets, financial statement disclosures, and, if applicable, required supplementary information in the financial reports of state and local governmental employers. OPEB PLAN DESCRIPTION PLAN PARTICIPANTS Retirees of the County are eligible to receive partially subsidized full retiree health care benefits. NORMAL RETIREMENT BENEFITS Members are eligible at age 60 with 8 years of continuous service. EARLY RETIREMENT BENEFITS Members retiring under early retirement conditions are not eligible for retiree health care benefits. DEFERRED RETIREMENT BENEFITS Members who terminate employment are not eligible for retiree health care benefits. DUTY AND NON- DUTY DEATI l IN SERVICE RETIREMENT BENEFITS Survivors of employees who die while actively employed are not eligible for retiree health benefits. DUTY AND NON -DUTY DISABLED RETIREMENT BENEFITS Employees who retire under a disability retirement are immediately eligible for partially retiree health care benefits. BENEFITS FOR SPOUSES OF RETIRED EMPLOYEES Spouse and eligible dependents are eligible to receive County partially subsidized County retiree' health care coverage for the life of the retiree. County partially subsidized coverage continued for surviving spouse and eligible dependents less than 19 years of age of deceased retired member. Surviving spouses and eligible dependents of deceased retired members may continue their health care coverage by reimbursing the cost to the County. Coverage continues to non Medicare eligible surviving spouses of deceased retirees. NON - MEDICARE AND MEDICARE— ELIGIBLE PROVISIONS Effective November 23, 2009, Kerr County requires retirees over 65 to enroll in Medicare Part A and Part B. DENTAL AND VISION COVERAGE The County does not offer dental or vision coverage for retirees or their dependents. LIFE INSURANCE COVERAGE The County does not offer life insurance coverage for retirees or their dependents. RETIREE OPT -OUT Retirees who decide to opt -out of health care plan will not be eligible to opt back in. There is no 35 PRELIMINARY DRAFT additional stipend provided for those who opt out of retiree health care. Funding Policy and Annual OPEB Cost The County's annual other post employment benefits (OPEB) cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameter of GASB Statement No. 45. The ARC represents a level of accrual that is projected to recognize the normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The County had its first OPEB actuarial valuation performed for the fiscal year beginning October 1, 2008 as required by GASB. The County's annual OPEB cost for the fiscal year ending September 30, 2009, is as follows: Annual required contribution $ 315,730 Interest on OPEB obligation - Adjustment to ARC - Annual OPEB cost (expense) end of year 315,730 Net estimated employer contributions (58,941) Increase in net OPEB obligation 256,789 Net OPEB obligation — as of beginning of the year - Net OPEB obligation (asset)— as of end of year $ 256,789 Funding status and funding progress The funded status of the County's retiree health care plan, under GASB Statement No. 45 as of December 31, 2008 is as follows: Actuarial Actuarial Value of Accrued Liability Unfunded AAL Actuarial Valuation Assets (AAL) (UAAL) Funded Ratio Date as of December 31 (a) (b) (b -a) (a/b) 2008 - $2,685,863 $2,685,863 0% Under the reporting parameters, the County's retiree health care plan is 0% funded with an estimated actuarial accrued liability exceeding actuarial assets by $2,685,863 at December 31, 2008. Actuarial methods and assumptions The Projected Unit Credit actuarial cost method is used to calculate the GASB ARC for the County's retiree health care plan. Using the plan benefits, the present health premiums and a set of actuarial assumptions, the anticipated future payments are projected. The projected unit credit method then provides for a systematic recognition of the cost of these anticipated payments. The yearly ARC is computed to cover the cost of benefits being earned by covered members as well as to amortize a portion of the unfunded accrued liability. Projections of health benefits are based on the plan as understood by the County and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the County and the County's employees to that point. Actuarial calculations reflect a long -term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows: 36 PRELIMINARY DRAFT Actuarial Methods and Assumptions Investment rate of return 4.5 %, net of expenses Actuarial cost method Projected Unit Credit Cost Method Amortization method Level as a percentage of payroll Growth Rate 3.0% per annum Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status and the annual required contributions of the County's retiree health care plan are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presented as required supplementary information provides multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. KERR COUNTY — OPEB Disclosure as of September 30, 2009 Employer Employer Annual Amount ARC Fiscal Year Required Contributed Interest on NO0 Adjustment Amortization OPEB Cost Change in NO0 NO0 Balance Ended Contribution (estimated) (9) x 4.5% (9) / (6) Factor (2) + (4) _ (5) (7) — (3) NO0 + (8) (1) (2) (3) (4) (5) (6) (7) (8) (9) 9/30/2008 9/30/2009 $ 315,730 $ 58,941 $ - $ - 24.16630 $ 315,730 $ 256,789 $ 256,789 3.N. SUBSEQUENT EVENT On January 15, 2010, Kerr County issued $4,350,000 of tax notes. Proceeds from the sale of the Notes will be used to construct and equip a new building primarily for use by the Sheriff's Department and for adult probation; construct a water line at the City /County airport and fund a master study for the airport; construct repairs and improvements to certain dams; acquire and equip Sheriff patrol cars; acquire other vehicles and various items of equipment and other personal property for various County departments; and pay cost of issuance. 3.0. CONTINGENT LIABILITIES The County is currently involved in several pending litigation suits and is subject to other various litigation and claims arising out of the normal course of operations. Although the outcome of these claims is not presently determinable, in the opinion of the government's management, the resolution of these matters will not have a material adverse effect on the accompanying financial statements. Therefore, no provision for any liability, if any, has been made in the accompanying financial statements. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial. 37 PRELIMINARY DRAFT REQUIRED SUPPLEMENTARY INFORMATION PRELIMINARY DRAFT KERR COUNTY EXHIBIT G -1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2009 Actual Amounts Variance With Budgeted Amounts (GAAP BASIS) Final Budget Positive or Original Final (Negative) REVENUES: Taxes: Property Taxes $ 10,633,109 $ 10,633,109 $ 10,449,487 $ (183,622) Other Taxes, Licenses, Permits 3,015,211 3,121,552 2,954,899 (166,653) Intergovernmental Revenue and Grants 306,848 306,848 403,923 97,075 Fees of Office 2,197,335 2,197,864 1,888,650 (309,214) Fines and Forfeitures 390,800 390,800 332,158 (58,642) Investment Earnings 275,000 275,000 65,649 (209,351) Other Revenue 470,086 551,950 348,095 (203,855) Total Revenues 17,288,389 17,477,123 16,442,861 (1,034,262) EXPENDITURES: Current: General Government 4,011,414 4,029,519 3,890,996 138,523 Administration ofJustice 4,165,982 4,286,638 4,230,924 55,714 Public Safety 4,407,394 4,523,644 4,222,161 301,483 Corrections 2,754,629 2,763,029 2,670,197 92,832 Health and Human Services 597,213 594,713 562,004 32,709 Community and Economic Development 692,039 734,465 699,886 34,579 Infrastructure and Environmental 326,972 326,972 298,965 28,007 Debt Service: Debt Principal - - 116,103 (116,103) Debt Interest - 13,304 10,396 2,908 Capital Outlay: General Government 17,775 17,775 15,757 2,018 Administration ofJustice 2,500 2,594 1,357 1,237 Public Safety 27,507 5,074 75,474 (70,400) Community and Economic Development 71,900 71,900 87,706 (15,806) Infrastructure and Environmental 900 900 880 20 Corrections 25,000 25,000 24,900 100 Health and Human Services - 2,500 2,414 86 Total Expenditures 17,101,225 17,398,027 16,910,120 487,907 Excess (Deficiency) of Revenues Over (Under) 187,164 79,096 (467,259 Expenditures (467,259) {546,355) OTHER FINANCING SOURCES (USES): Proceeds from Capital Leases - - 74,304 74,304 Non - Current Loans - - 20,878 20,878 Insurance Proceeds - 12,150 12,150 Transfers Out (Use) (50,000) (50,000) (52,000) (2,000) Total Other Financing Sources (Uses) (50,000) (50,000) 55,332 105,332 Net Change in Fund Balances 137,164 29,096 (411,927) (441,023) Fund Balance - October 1 (Beginning) 2,574,576 2,574,576 2,574,576 - Fund Balance - September 30 (Ending) $ 2,711,740 $ 2,603,672 $ 2,162,649 $ (441,023) 38 PRELIMINARY DRAFT KERR COUNTY EXHIBIT G -2 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - ROAD AND BRIDGE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2009 Actual Variance With Budgeted Amounts Final Budget GAAP BASIS Positive or Original Final (See Note) (Negative) REVENUES: Taxes: Property Taxes $ 1,046,053 $ 1,046,053 $ 1,136,194 $ 90,141 Automobile Registration 1,196,000 1,196,000 . 996,235 (199,765) intergovernmental Revenue and Grants 29,000 29,000 28,857 (143) Fees of Office 372,000 372,000 434,934 62,934 Fines and Forfeitures 3,000 3,000 6,670 3,670 Investment Earnings 14,500 14,500 751 (13,749) Other Revenue 12,500 13,418 9,803 (3,615) Total Revenues 2,673,053 2,673,971 2,613,444 (60,527) • EXPENDITURES: Current: Infrastructure and Environmental 2,535,430 2,510,527 2,466,675 43,852 Debt Service: Debt Principal 69,004 75,588 79,012 (3,424) Debt Interest 17,560 18,067 (50� Capital Outlay: (507) Infrastructure and Environmental 227,600 227,441 227,441 - Total Expenditures 2,832,034 2,831,116 2,791,195 39,921 • Change in Fund Balance (158,981) (157,145) (177,751) (20,606) Fund Balance - October 1 (Beginning) 497,563 497,563 497,563 Fund Balance - September 30 (Ending) $ 338,582 $ 340,418 $ 319,812 $ (20,606) • • .39 PRELIMINARY DRAFT EXHIBIT G -3 KERR COUNTY REQUIRED SUPPLEMENTARY INFORMATION TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM SEPTEMBER 30, 2009 SCHEDULE OF FUNDING PROGRESS FOR THE RETIREMENT PLAN FOR THE EMPLOYEES OF KERR COUNTY UAAL as a Actuarial Annual Covered Percentage of Actuarial Actuarial Value Accrued Liability Unfunded AAL Funded Ratio Payroll Y Covered Payroll Valuation Date ofAssets(a) (AAL)(b) (UAAL) (b -a) (a /b) (c) [(b -a) /c] 12/31/03 $13,000,396 $15,187,317 $ 2,186,921 85.60% $ 8,020,926 27.27% 12/31/04 14,260,964 16,668,166 2,407,202 85.56% 8,870,350 27.14% 12/31/05 16,152,206 18,786,439 2,634,233 85.98% 9,247,537 28.49% 12/31/06 18,402,681 20,642,315 2,239,639 89.15% 9,320,152 24.03% 12/31/07 3 19,612,015 22,356,274 2,744,259 87.72% 9,954,080 27.57% 12/31/08 20,565,974 24,950,014 4,384,040 82.43% 10,805,642 40.57% 1 The annual covered payroll is based on the employee contributions received by TCDRS for the year ending with the valuation date. 2 Funding information may differ from prior year compliance data due to plan changes effective 1/1/2008. 3 Funding information may differ from prior year compliance data due to plan changes effective 1/1/2009. 40 PRELIMINARY DRAFT KERR COUNTY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2009 212 214 218 219 Election Fire County Public Services Protection Law Library Library Fund Fund Fund Fund ASSETS Cash and Cash Equivalents $ 8,771 $ 24,214 $ 116,286 $ 39,987 Taxes Receivable - 13,875 - 15,614 Allowance for Uncollectible Taxes (credit) - (121) - (781) Intergovernmental Receivables 1,840 - - - Prepaid Items - - - - Total Assets $ 10,611 $ 37,968 $ 116,286 $ 54,820 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ - $ 13,617 $ 528 $ - Deferred Revenues - 13,754 - 14,833 Total Liabilities - 27,371 528 14,833 Fund Balances: Unreserved and Undesignated: Reported in the Special Revenue Fund 10,611 10,597 115,758 39,987 Reported in the Debt Service Fund - - - - Reported in the Capital Projects Fund - - - - Total Fund Balances 10,611 10,597 115,758 39,987 Total Liabilities and Fund Balances $ 10,611 $ 37,968 $ 116,286 $ 54,820 The notes to the Financial Statements are an integral part of this statement. EXHIBIT H -1 (Cont'd) 220 222 226 228 229 231 233 236 Road Flood JP Records Mgmt Courthouse District Clrk Child Abuse Districts Control Technology Preservation Security Parks Records Mgmt Prevention Fund Fund Fund Fund Fund Fund Fund Fund $ 19,097 $ 83,577 $ 35,370 $ 84,007 $ (45,152) $ 12,736 $ 19,049 $ 503 - - - - 1,796 976 - - - - - - (146) (49) - - $ 19,097 $ 83,577 $ 35,370 $ 84,007 $ (43,502) $ 13,663 $ 19,049 $ 503 $ - $ - $ - $ 2,835 $ (14) $ - $ 3,800 $ - - - - - 1,650 927 - - - - - 2,835 1,636 927 3,800 19,097 83,577 35,370 81,172 (45,138) 12,736 15,249 503 19,097 83,577 35,370 81,172 (45,138) 12,736 15,249 503 $ 19,097 $ 83,577 $ 35,370 $ 84,007 $ (43,502) $ 13,663 $ 19,049 $ 503 KERR COUNTY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2009 237 240 241 271 Centerpoint Alternative Records Schreiner Wastewater Dispute Archival Road Trust Fund Resolution Fund Fund ASSETS Cash and Cash Equivalents $ (55,493) $ 21,733 $ 77,348 $ 45,485 Taxes Receivable - - Allowance for Uncollectible Taxes (credit) - - - - Intergovernmental Receivables - - - - Prepaid Items - - - - Total Assets $ (55,493) $ 21,733 $ 77,348 $ 45,485 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ 15,258 $ - $ - $ - Deferred Revenues - - - - - -- - -- __ _ ---- - - - - -- -..._...._.---- - - -- Total Liabilities 15,258 - - - Fund Balances: Unreserved and Undesignated: Reported in the Special Revenue Fund (70,751) 21,733 77,348 45,485 Reported in the Debt Service Fund - - - - Reported in the Capital Projects Fund - - - - Total Fund Balances (70,751) 21,733 77,348 45,485 Total Liabilities and Fund Balances $ (55,493) $ 21,733 $ 77,348 $ 45,485 The notes to the Financial Statements are an integral part of this statement, F EXHIBIT H -1 (Cont'd) 276 277 279 282 283 285 Total 558 Juvenile War Sheriff 216th 216th Nonmajor Certificate Detention LEOSE Memorial Seizure District District Special Of Obligation Facility Fund Fund Fund Attorney Probation Revenue Funds 2005 Fund $ 50,038 $ 33,274 $ 50 $ 40,319 $ 25,244 $ 118,752 $ 755,195 $ 23,668 13,662 - - - - - 45,923 13,437 (1,057) - - - - - (2,154) (672) 34,984 - - - 2,871 - 39,695 - 7,753 - - - - - 7,753 - $ 105,380 $ 33,274 $ 50 $ 40,319 $ 28,115 $ 118,752 $ 846,412 $ 36,433 $ 7,340 $ 175 $ - $ - $ 4,676 $ - $ 48,215 $ - 12,605 - - - - 43,769 12,765 19,945 175 - - 4,676 - 91,984 12,765 85,435 33,099 50 40,319 23,439 118,752 754,428 - - - - - - - 23,668 85,435 33,099 50 40,319 23,439 118,752 754,428 23,668 $ 105,380 $ 33,274 $ 50 $ _40,319 $ 28,115 $ _ 118,752 $ 846,412 $ 36,433 KERR COUNTY COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2009 559 562 564 565 General 1994 Jail Capital 2007 Capital Contractual Bond Lease Financing Obligation Fund Fund Fund ASSETS Cash and Cash Equivalents $ - $ 7,512 $ 14,880 $ 28,430 Taxes Receivable - 20,688 9,056 9,686 Allowance for Uncollectible Taxes (credit) - (768) (383) (484) Intergovernmental Receivables - - - - Prepaid Items - - - - Total Assets $ - $ 27,432 $ 23,553 $ 37,632 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ - $ - $ - $ Deferred Revenues - 19,920 8,673 9,202 Total Liabilities - 19,920 8,673 9,202 Fund Balances: Unreserved and Undesignated: Reported in the Special Revenue Fund - - - - Reported in the Debt Service Fund - 7,512 14,880 28,430 Reported in the Capital Projects Fund - - - - Total Fund Balances 7,512 14,880 28,430 Total Liabilities and Fund Balances $ - $ 27,432 $ 23,553 $ 37,632 The notes to the Financial Statements are an integral part of this statement, EXHIBIT H -1 Total 632 670 Total Total Nonmajor Community Permanent Nonmajor Nonmajor Debt Service Development Improvement Capital Governmental Funds Grant Fund Fund Project Funds Funds $ 74,490 $ 2,320 $ 14,864 $ 17,184 $ 846,869 52,867 - 476 476 99,266 (2,307) - (397) (397) (4,858) - - - - 39,695 - - - - 7,753 $ 125,050 $ 2,320 $ 14,943 $ 17,263 $ 988,725 $ - $ - $ - $ - $ 48,215 50,560 - 79 79 94,408 50,560 - 79 79 142,623 - - - - 754,428 74,490 - - - 74,490 2,320 14,864 17,184 17,184 74,490 2,320 14,864 17,184 846,102 $ 125,050 $ 2,320 $ 14,943 $ 17,263 $ 988,725 KERR COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2009 212 214 218 219 Election Fire County Public Services Protection Law Library Library Fund Fund Fund Fund REVENUES: Taxes: Property Taxes $ - $ 348,870 $ - $ 393,092 Intergovernmental Revenue and Grants - - - - Fees of Office 18,457 - 45,443 - Fines and Forfeitures - - - - Investment Earnings 12 25 152 77 Other Revenue - - - - Total Revenues 18,469 348,895 45,595 393,169 EXPENDITURES: Current: General Government 15,760 - - - Administration of Justice - Public Safety - 272,092 - - Corrections - - - Health and Human Services: Community and Economic Development - - 58,181 400,000 Infrastructure and Environmental - - - - Debt Service: Debt Principal - - _ Debt Interest - _ - - Fiscal Agent's Fees - - - - Capital Outlay: General Government - - - Public Safety - _ - - Infrastructure and Environmental - - - - Total Expenditures 15,760 272,092 58,181 400,000 Excess (Deficiency) of Revenues Over (Under) 2,709 76,803 (12,586) (6,831) Expenditures — -- OTHER FINANCING SOURCES (USES): Transfers In - - - - Transfers Out (Use) - - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balance 2,709 76,803 (12,586) (6,831) Fund Balance - October 1 (Beginning) 7,902 (66,206) 128,344 46,818 Fund Balance - September 30 (Ending) $ 10,611 $ 10,597 $ 115,758 $ 39,987 The notes to the Financial Statements are an integral part of this statement. EXHIBIT H -2 (Cont'd) 220 222 226 228 229 231 233 236 Road Flood JP Records Mgmt Courthouse District Clrk Child Abuse Districts Control Technology Preservation Security Parks Records Mgmt Prevention Fund Fund Fund Fund Fund Fund Fund Fund $ 4,897 $ - $ - $ - $ 45,206 $ 24,568 $ - $ - 16,049 41,201 31,733 - 4,789 308 19 101 44 107 - 7 21 - 4,916 101 16,093 41,308 76,939 24,575 4,810 308 - 18,100 54,968 - - 5,925 - 123,975 - - - - - - 9,206 - - - - - - 569 - - - - - 18,100 54,968 124,544 9,206 5,925 4,916 101 (2,007) (13,660) (47,605) 15,369 (1,115) 308 - - - 19,000 52,000 - - - - 19,000 52,000 - - 4,916 101 (2,007) 5,340 4,395 15,369 (1,115) 308 14,181 83,476 37,377 75,832 (49,533) (2,633) 16,364 195 $ 19,097 $ 83,577 $ 35,370 $ 81,172 $ (45,138) $ 12,736 $ 15,249 $ 503 KERR COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2009 237 240 241 271 Centerpoint Alternative Records Schreiner Wastewater Dispute Archival Road Trust Fund Resolution Fund Fund REVENUES: Taxes: Property Taxes $ - $ - $ - $ - Intergovernmental Revenue and Grants - - - Fees of Office - 16,999 77,989 - Fines and Forfeitures - _ - - Investment Earnings 11 17 102 31 Other Revenue - - 36,000 Total Revenues 11 17,016 78,091 36,031 EXPENDITURES: Current: General Government - - 79,827 - Administration of Justice - 15,000 - Public Safety _ _ - - Corrections - - - Health and Human Services: Community and Economic Development - - - - Infrastructure and Environmental - - - 8,215 Debt Service: Debt Principal - - - - Debt Interest _ - - Fiscal Agent's Fees _ - - - Capital Outlay: General Government - - - - Public Safety - - - - Infrastructure and Environmental 70,924 - - Total Expenditures 70,924 15,000 79,827 8,215 Excess (Deficiency) of Revenues Over (Under) (70,913) 2,016 (1,736) 27,816 Expenditures — — -- — - -- OTHER FINANCING SOURCES (USES): Transfers In - - - Transfers Out (Use) _ - (19,000) - Total Other Financing Sources (Uses) - - (19,000) - Net Change in Fund Balance (70,913) 2,016 (20,736) 27,816 Fund Balance - October 1 (Beginning) 162 19,717 98,084 17,669 Fund Balance - September 30 (Ending) $ (70,751) $ 21,733 $ 77,348 $ 45,485 The notes to the Financial Statements are an integral part of this statement. ^ EXHIBIT 11-2 (Cont'd) ___ _____ ����� ______ 276 277 279 282 283 285 Total 558 Juvenile War Sheriff 216th 216th Nonmajor Certificate Detention LEOSE Memorial Seizure District District Special Of Obligation Facility Fund Fund Fund Attorney Probation Revenue Funds 2005 Fund --____- $ 302 $ - $ - $ - $ - $ - $ 1 $ 3]8 524 9/484 - - 493 - 1,027 ' ' - - - - ' 252,968 ' - - ' 24,091 - - 24,091 ' 220 39 ' 27 223 146 1,381 120 6,181 - 50 - 1,856 44,087 - 833,435 9,523 50 24,118 494,136 2,002 2,469,581 338.419 - - - ' ' - 174,580 - - - - - 505.147 - 520,147 - ' 7')6G 7,595 ' 7,595 ' - 410,825 - 1,010,741 ' - - - 5,141 1/015.883 - - - - ' ' - 467387 L - - - - - - 8,215 ' _ _ - - _ _ ' �7��OO _ _ _ - - - - 19,238 - _ - _ _ ' ' 431 - ' - ' ' - - - ' ' ' - ' ' 569 - - ' ' � - - 70,924 - 1/)]0,741 7,163 - 7,595 505 5,141 2,608529 394,669 (177 2,360 50 16,523 (11,011) (3,139) (198,948) (56,256) - ' - - - - 71.000 - --------- ------ '------� - - - - (25,000 - - - _ - - - 52,000 (25,000 (177,316) 2,360 50 16.523 (11,011) (3.139) (146,948 ) (8 262,751 30,739 . 23,796 34,450 121,891 901,376 104,924 $ 85,435 $ __ S3.099 $ 50 $ 40,319 $ 23,439 $ 118,752 $ 754,428 $ 23,668 KERR COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2009 559 562 564 565 General 1994 Jail Capital 2007 Capital Contractual Bond Lease Financing Obligation Fund Fund Fund REVENUES: Taxes: Property Taxes $ - $ 520,847 $ 227,994 $ 243,859 Intergovernmental Revenue and Grants - - - - Fees of Office - - - - Fines and Forfeitures - - - - Investment Earnings 44 31 55 32 Other Revenue - - _ - - Total Revenues 44 520,878 228,049 243,891 EXPENDITURES: Current: General Government - - - - Administration of Justice - - - - Public Safety - - - - Corrections - - - - Health and Human Services: Community and Economic Development - - - - Infrastructure and Environmental - - - - Debt Service: Debt Principal - 455,000 205,681 135,000 Debt Interest - 74,056 25,782 80,461 Fiscal Agent's Fees - 750 - - Capital Outlay: General Government - - - - Public Safety - - - - Infrastructure and Environmental - - - Total Expenditures = 529,806 231,463 215,461 Excess (Deficiency) of Revenues Over (Under) 44 (8,928) (3,414) 28,430 Expenditures — - -- OTHER FINANCING SOURCES (USES): Transfers In - 65,141 - - Transfers Out (Use) (40,141) - - - Total Other Financing Sources (Uses) (40,141) 65,141 - - Net Change in Fund Balance (40,097) 56,213 (3,414) 28,430 Fund Balance - October 1 (Beginning) 40,097 (48,701) 18,294 - Fund Balance - September 30 (Ending) $ - $ 7,512 $ 14,880 $ 28,430 The notes to the Financial Statements are an integral part of this statement. EXHIBIT H -2 Total 632 670 Total Total Nonmajor Community Permanent Nonmajor Nonmajor Debt Service Development Improvement Capital Governmental Funds Grant Fund Fund Project Funds Funds $ 1,330,993 $ - $ 11,990 $ 11,990 $ 2,462,297 86,580 - 86,580 1,114,320 - - - - 252,968 - - - - 24,091 282 - 13 13 1,676 - - - 44,087 1,331,275 86,580 12,003 98,583 3,899,439 - - - - 174,580 - - - - 520,147 - - - 410,825 - - - - 1,015,882 - - - - 467,387 84,260 - 84,260 92,475 1,170,681 - - - 1,170,681 199,537 - - - 199,537 1,181 - - - 1,181 - - 8,347 8,347 8,347 - - - - 569 - - - - 70,924 1,371,399 84,260 8,347 92,607 4,132,535 (40,124) 2,320 3,656 5,976 (233,096) 65,141 - - 136,141 (65,141) - - - (84,141) - - - - 52,000 (40,124) 2,320 3,656 5,976 (181,096) 114,614 11,208 11,208 1,027,198 $ 74,490 $ 2,320 $ 14,864 $ 17,184 $ 846,102 EXHIBIT H -9 KERR COUNTY COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2009 BALANCE BALANCE OCTOBER 1 SEPTEMBER 30 2008 ADDITIONS DEDUCTIONS 2009 LAKE INGRAM ROAD DISTRICT Assets: Cash and Cash Equivalents $ 4,834 $ 23,879 $ 22,855 $ 5,858 Liabilities: - - - -- - - Due to Other Governments $ 4,834 $ 23,879 $ 22,855 $ 5,858 HISTORICAL COMMISSION Assets: Cash and Cash Equivalents $ 3,551 $ 5 $ - $ 3,556 Liabilities: _ - -- - -- _ Due to Others $ 3,551 $ 5 $ - $ 3,556 DISTRICT ADMINISTRATION Assets: Cash and Cash Equivalents $ (15,292) $ 967,943 $ 922,085 $ 30,566 Other Receivables - 4,956 - 4,956 Due from Others 14,938 - 14,938 - Total Assets $ (354) $ 972,899 $ 937,023 $ 35,522 __ Liabilities: - _ - - - -- Accounts Payable $ 354 $ - $ - $ 354 Due to Others - 35,168 - 35,168 Total Liabilities $ 354 $ 35,168 $ - $ 35,522 COUNTY ATTORNEY HOT CHECK FUND Assets: Cash and Cash Equivalents $ 33,262 $ 34,805 $ - - 39,000 $ 29,067 .•-_ - -- - - - - - - -- Liabilities: Due to Others $ 33,262 $ 34,805 $ 39,000 $ 29,067 TEXAS SPECIAL TAX FUND Assets: Cash and Cash Equivalents $ 144,064 $ 729,733 $ 756,960 $ 116,837 Liabilities: Accounts Payable $ - $ 576 $ - $ 576 Due to Other Governments 144,064 729,733 757,536 116,261 Total Liabilities $ 144,064 $ 730,309 $ 757,536 $ 116,837 OFFICIALS' FEES FUND Assets: Cash and Cash Equivalents $ 381,307 $ 5,192,771 $ 5,087,159 $ 486,919 Liabilities: - -- _ _ - __ - � - ____ _ - -= Due to Others $ 381,307 $ 5,192,771 $ 5,087,159 $ 486,919 TOTAL AGENCY FUNDS Assets; Cash and Cash Equivalents $ 551,726 $ 6,949,136 $ 6,828,059 $ 672,803 The notes to the Financial Statements are an integral part of this statement. EXHIBIT H-9 (Cont'd) KERR COUNTY COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2009 BALANCE BALANCE OCTOBER 1 SEPTEMBER 30 2008 ADDITIONS DEDUCTIONS 2009 Other Receivables - 4,956 - 4,956 Due From Others 14,938 14,938 Total Assets $ 566,664 $ 6,954,092 $ 6,842,997 $ 677,759 Liabilities: Accounts Payable $ 354 $ 576 $ - $ 930 Due to Other Governments 148,898 753,612 780,391 122,119 Due to Others 418,120 5,262,749 5,126,159 554,710 Total Liabilities $ 567,372 $ 6,016,937 $ 5,906,550 $ 677,759 __ — --- -----_ —_= _ _ -_ --_- -- -------- The notes to the Financial Statements are an integral part of this statement. 04/06/2010 09:19 FAX x006 Kerr County Notes to Basic Financial Statements (continued) Fungi; Policv ant} A nnual OPEB Cost The County's annual other post employment benefits (OPEB) cost is calculated based on ' the annual required contribution of the employer (ARC), an amount actuarially deteri pined in accordance with the parameter of GASB Statement No. 45. The ARC represents a level of accrual that is projected to recognize the normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The County had its first OPEB actuarial valuation performed for the fiscal year beginning October 1, 2008 as required by GASB. The County's annual OPEB cost for the fiscal year ending September 30, 2009, is as follows: Annual required contribution $315,730 interest on OPEB obligation 0 Adjustment to ARC 0 Annual OPEB cost (expense) end of year $315,730 Net estimated employer contributions $(58,941) Increase in net OPEB obligation $256,789 Net OPEB obligation — as of beginning of the year 0 Net OPEB obligation (asset) — as of end of year $256,789 Kerr County Retiree Health Care Fran r • EXPENSES AND PROGRAM REVENUES - GOVERNMENTAL ACTIVITIES 1 % of Program % of Net(Expense) Total Revenues Total Revenue Functions /Programs Expenses General Government $ 4,756,236 19.43% $ 125,248 2.74% $ (4,630,988) Administration of Justice 4,767,520 19.48% 2,499,284 54.58% (2,268,236) Public Safety 5,085,971 20.78% 326,150 7.12% (4,759,822) Corrections 3,766,442 15.39% 424,352 9.27% (3,342,090) Health and Human Services 1,093,762 4.47% 92,153 2.01% (1,001,609) Community and Economic Develop 1,225,488 5.01% - 0.00% (1,225,488) Infrastructure and Enviormenta 3,597,638 14.70% 1,111,942 24.28% (2,485,696) Interest on Long Term Debt 182,680 0.75% - 0.00% (182,680) $ 24,475,737 100.01% $ 4,579,128 100.00% $ (19,896,609) 6000K 5000K Fill'IllIP 4000K ' . . 3000K ( . ill . ■ Sum of @Expenses 2000K I . . ■ Sum of @Program 1000K) r . Revenues OK - i i • i i c0 c� oc o � C\ � a C\ Ic a Coco, / z 5 e ° , :� \ o Q J ce O .o p o r\ o c c � . • 4- �� J o 41 �occ mca �� � O � 4 � J 0 � � c � y\. . o Jc z :, ,.,c,‘- C a � ` � oQ o'` �' a c � o co o \ `o c�` \c• c� 1'p F J 0 O o �� �0 1' h O c 0 � 0 '$' O �G� �Z 0 o (<5" o REVENUES BY SOURCE - GOVERNMENTAL ACTIVITIES % of Revenue Source Revenue Total Property Tax Levied $ 14,983,819 77.69% Sales and Other Taxes 2,954,899 15.32% Investment Earnings 77,028 0.40% Other Income 1,270,614 6.59% $ 19,286,360 100.00% Sales and Other Taxes Investment Earnings Other Income IN Investment Earnings 0.4% • Other Income 6.6% 7 • o 77.7% Sales Pr and Tax Other Taxes Levied 15.3% Transfers perty 0.0% Total: 100.0% Property Tax Levied