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HomeMy WebLinkAboutMINUTES - 03252003 - C65 TO: BOARD OF SUPERVISORSContra r FROM: Kenneth J. Corcoran Costa Auditor-Controller " DATE: March 18,2003 o'u n t SUBJECT: Comprehensive Annual Financial Report SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ACKNOWLEDGE that the Board of Supervisors has received the County's Comprehensive Annual Financial Report for fiscal year 2001-2402 as audited by Macias, Gini & Company, LLP. BACKGROUND: In compliance with Government Code Section 25253 the Office of the County Auditor annually prepares a Comprehensive Annual financial Report (CAFR) to summarize the County's financial activities and balances for the year ended June 30. The general-purpose financial statements contained therein are audited by independent certified public accountants who express their opinion about them on page 1 of the Report. The 2001-2002 CAFR contains significant changes and additional data, compared to prior years, resulting from the implementation of Government Accounting Standards Board (GASB) Statement,Number 34. These include govemment-wide financial statements presented on the full-accrual basis of accounting, a Management's Discussion and Analysis, reporting of infrastructure assets and required supplementary information. Please refer to the Introductory Section of the CAFR for more information about the new content. The independent auditors again gave the County's financial report an unqualified (or "clean") opinion for the year ended June 30, 2002. CONTINUED ON ATTACHMENT: NO SIGNATURE:tl� fir �-.- �v � ECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD MMITTEE �PPROVE OTHER SIGNATURE(S): ACTION OF_ ON� March 25, 2003 APPROVE AS RECOMMENDED XOTHER VITE OF SUPERVISORS - UNANIMOUS I HEREBY CERTIFY THAT THIS IS A TRUE (ABSENT g ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: —) AND ENTERED ON THE MINUTES OF THE ABSENT: ABSTAIN: BOARD OF SUPERVISORS ON THE DATE DISTRICT III SEAT VACANT SHOWN. ATTESTED_ March 25, 2003 CONTACT:JACK COOPER (925)646-2161 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY CC: COUNTY ADMINISTRATOR ADMINISTRATOR BY I 6aS�EPUTY County of Coutra Costa California COMPREHENSIVE ANWAL HNANCIAL REPORT Fiscal Year Euded June M, M Kemeth J. Corcoran Auditor-Controller COUNTY OF CONTRA COSTA COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS June 30,2002 Page Introductory Section Letter to the Board of Supervisors and Citizens of the County........................................................................................i PublicOfficials...............................................................................................................................................................ix OrganizationalChart........................................................................................................................................................x Certificateof Achievement.............................................................................................................................................xi Financial Section IndependentAuditor's Report.........................................................................................................................................1 Management's Discussion and Analysis(Required Supplementary Information)..........................................................3 Basic Financial Statements: Government-wide Financial Statements: Statementof Net Assets.......................................................................................................................................17 Statementof Activities.........................................................................................................................................18 Fund Financial Statements: Governmental Funds: BalanceSheet..................................................................................................................................................20 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets............................21 Statement of Revenues,Expenditures and Changes in Fund Balances...........................................................22 Reconciliation of the Governmental Funds Statement of Revenues,Expenditures and Changes in Fund Balances to the Statement of Activities....................................................................23 Proprietary Funds: lStatement of Fund Net Assets..........................................................................................................................24 Statement of Revenues,Expenses and Changes in Fund Net Assets...............................................................25 Statementof Cash Flows.................................................................................................................................26 Fiduciary Funds: Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets................................................................................................28 Notes to the Basic Financial Statements: Summary of Significant Accounting Policies..................................................................................................29 FundEquity.....................................................................................................................................................40 Stewardship,Compliance and Accountability.................................................................................................45 Cashand Investments......................................................................................................................................45 Receivables......................................................................................................................................................49 InterfundTransactions.....................................................................................................................................51 Capital Assets..................... : .............................................................................................................................56 Short-Term Notes Payable...............................................................................................................................58 Payables...........................................................................................................................................................59 jLeases..............................................................................................................................................................60 Long-Term Obligations................... ConduitDebt...................................................................................................................................................66 . ............................................................... ..................................... ---__' _ � ^^- ! Net Assets/Fund Balances...............................................................................................................................67 ! Permanent Fund.............................................. ................................................................................................68 Employees'Retirement Plan...........................................................................................................................68 PaulsonLawsuit Settlement..................................... .......................................................................................70 Patient Service Revenue and Receivables...................................................................... .......... .....................7l RiskManagement............................................................................................................................................7l Commitments and Contingencies....................................................................................................................73 ^�^ � Subsequent Events.............................................................. ............................................................................74 Required Supplementary Information(other than MD&&): ! Budgetary Comparison Schedule'General Fund: � Schedule n[Revenues,Expenditures and Changes ioFund Balances'Budget and Actual.................................77 Note»mRequired Supplementary Information......................................................................................................8O Combining and Individual Fund Statements and Schedules: 9400majo«Governmental Funds:...............................................................................................................................0| ! Combining Balance Sheet.................................................................................................... ...............................0| Combining Statement ofRevenues,Expenditures and Changes inFund Balances..... .......................................82 NoumajorSpecial Revenue Funds:..................................................... .....................................................................8S CombiningBalance Sheet....................................................................................................................................86 ! Combining Statement nFRevenues,Expenditures and Changes iuFund Balances.............................................88 � Budgetary Comparison Schedules: ` Road Special Revenue Funds................................................................................. ........................................90 ~—^ ^ Library Special Revenue Fund................................................... ...... ........................................... .................g} ;~1 Fire Protection Special Revenue Funds........................... ................. ........................................... .................92 Health and Sanitation Special Revenue Funds......................... ...................... ...............................................93 Service Areas Special Revenue Funds.............................................................................................................94 Flood Control Special Revenue Funds............................................................................................................9b Law Enforcement Special Revenue Funds......................................................................................................97 Courts and Criminal Justice Special Revenue Funds.......................................................................................A8 --' Recorder/Clerk Modernization Special Revenue Funds..................... ............................................................99 Land Development Special Revenue Fund............... ....................................................................................|00 Redevelopment Agency Special Revenue Funds...........................................................................................|O| Child Development Special Revenue Fund...................................................................................................l02 In-Home Supportive Services Public Authority Special Revenue Fund.................................... ...................\03 OtherSpecial Revenue Funds........................................................................................................................l04 Nu000ajo«Debt Service Funds:..................................................................... ........................................................ 105 --' CombiningBalance Sheet............................................................................................................................. ....|0h Combining Statement of Revenues,Expenditures and Changes iuFund Balances...........................................\O8 Budgetary Comparison Schedules: Recreation and Park Bonds Debt Service Fund..................... ............................................................. .........l\0 �1 Storm Drainage Bonds Debt Service Fund.................................................................................................... ll| �8on�yDu6��cn/bc�oodu.---_-----------------'--'''---{l2 Redevelopment PensionBond Debt Service Fund..................................................................................................................|l3 Noo-ujozCapital Projects Funds:...........................................................................................................................1l5 CombiningBalance Sheet................................................................... ..............................................................)lh �^� Combining Statement of Revenues,Expenditures and Changes in Fund Balances...........................................117 Budgetary Comparison Schedules: Redevelopment Agency Capital Projects Funds............................................................................................118 County Facilities Capital Projects Funds.......................................................................................................119 NonmajorPermanent Fund.....................................................................................................................................121 NonmajorEnterprise Funds:...................................................................................................................................123 Combining Statement of Net Assets....................................................................................................................124 Combining Statement of Revenues,Expenses and Changes in Fund Net Assets...............................................125 Combining Statement of Cash Flows.................................................................................................................126 InternalService Funds:............................................................................................................................................127 CombiningBalance Sheet..................................................................................................................................128 Combining Statement of Revenues,Expenses and Changes in Fund Net Assets...............................................130 CombiningStatement of Cash Flows.................................................................................................................132 :. Fiduciary Funds:......................................................................................................................................................135 AgencyFunds:........... ............................................................................................................................................136 Combining Statement of Changes in Assets and Liabilities...............................................................................136 Capital Assets Used in the Operation of Governmental Funds:................................................................................139 Scheduleof Funding Sources.............................................................................................................................141 Schedule by Function and Activity....................................................................................................................142 Schedule of Changes By Function and Activity.................................................................................................144 Statistical Section Government-wide Information: Government-wide Expenses by Function................................................................................................................147 Government-wide Revenues...................................................................................................................................148 Fund Information: General County Revenues by Source......................................................................................................................149 General County Expenditures by Function .............................................................................................................150 General County Revenues by Source-Constant Dollars........................................................................................151 General County Expenditures by Function-Constant Dollars...............................................................................152 Assessed Value of Taxable Property.......................................................................................................................153 General Taxes Levied and Collected.......................................................................................................................154 Special Assessments Levied and Collected.............................................................................................................155 Property Tax Rates-Direct and Overlapping Governments...................................................................................156 Property Taxes-Direct and All Overlapping Governments ...................................................................................157 Property Tax Levies and Delinquencies..................................................................................................................158 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita......................................159 Property Value,Construction and Bank Deposits...................................................................................................160 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures............................................................................................................................162 Computationof Legal Debt Margin........................................................................................................................163 Computation of Direct and Overlapping Debt........................................................................................................164 TenPrincipal Taxpayers...................................................................................... ....166 Demographics-Population.....................................................................................................................................167 MiscellaneousStatistics..........................................................................................................................................168 ............................. I i ♦♦ `� ` coli t ■ ■ ■ � INTRODUCT Opty � SECTION Contra Costa County Office of Kenneth J. Corcoran eor COUNTY AUDITOR-CONTROLLER StepJ.en J.iter �.f''�', StYberra Assistant Audftor-Controller 625 Court Street Martinez, California 94553-1282 Telephone (925) 646-2181 Fax (925) 646-2649 December 20,2002 Members of the Board of Supervisors and Citizens of Contra Costa County: The Comprehensive Annual Financial Report(CAFR)of the County of Contra Costa for the fiscal year of 2001- 2002 is presented in compliance with Section 25253 of the Government Code of the State of California. The .:.......: Office of the County Auditor-Controller,which is responsible for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures,prepared this report. We believe the data, as presented, are accurate in all material aspects and presented in a manner designed to fairly set forth the financial position and changes in financial position of the County as measured by the financial activity of its various funds and component units and that all disclosures necessary to enable the reader to gain the maximum understanding of the County's financial affairs have been included. This year our CAFR will be significantly different and improved from those issued in prior years. This is the result of a major new reporting standard, Governmental Accounting Standards Board(GASB) Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments. In addition to the fund financial statements and statistical section that we have presented in the past, we will now present more information to better enable readers to determine the cost of County services and how effectively it has used its resources. This includes the following: • Management's Discussion and Analysis (MD&A) is a formal narrative by the County's management to provide an overview and analysis of the County's financial activity for the year and any known facts that may significantly affect future activity. Some of the information that was previously presented in this Introductory Section is now in the Management's Discussion and Analysis. • Government-wide Financial Statements provide a broad overview of the County's finances in a manner similar to a private-sector business. The new statement of net assets presents all of the assets, including capital and infrastructure assets, net of all liabilities including long-term debt. In addition to general revenues (i.e. taxes and investment earnings), the new statement of activities presents the program revenues and expenses associated with the various functions of County government,its business-type activities and its component units. i • Required Supplementary Information (other than MD&A) consists of the General Fund's budgetary comparisons. The CAFR represents the culmination of all budgeting and accounting activities engaged in by management during the year,covering all of its financial transactions. The CAFR is organized into three sections: _.. • The Introductory Section is intended to familiarize the reader with the organizational structure of the County, the nature and scope of the services it provides, and the specifics of its legal operating environment. • The Financial Section includes the independent auditor's report on the basic financial statements, MD&A, audited basic financial statements, note disclosures and supporting statements and schedules necessary to provide readers with a comprehensive understanding of the County's financial activities of the past fiscal year. • The Statistical Section contains comprehensive statistical data for the County relating to its physical,economic,social and political characteristics. THE REPORTING ENTITY The County reporting entity includes all the financial balances and activities of the primary government as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable or other organizations for which the nature and significance of the relationship with the primary government are such that exclusion would make the enclosed financial statements misleading or incomplete. For further information on these component units see Note LA in the Notes to the Basic Financial Statements section of this report. The reporting entity excludes certain separate legal entities which may have"Contra Costa"in their title,or which _..... are required to keep their funds in the County Treasury or receive their tax apportionment from the County. Examples are school districts, the community college district, cities, city redevelopment agencies, the Bay Area Rapid Transit District,the Metropolitan Transportation Commission, and a variety of special purpose districts for cemeteries, mosquito abatement, recreation and parks, etc. These entities are autonomous organizations that handle their own fiscal affairs and for which the Board of Supervisors has no oversight responsibility. Accordingly, they are not included in the accompanying basic financial statements, except for their assets, principally cash and investments,which are held by the County Treasurer. Contra Costa County was incorporated in 1850 as one of the original 27 counties of the State. It is one of nine counties in the San Francisco-Oakland Bay Area. The County covers about 733 square miles; the western and northern shorelines are highly industrialized, while the interior sections are suburban/residential,commercial and light industrial. The County has a general law form of government. A five member Board of Supervisors, each elected to four year terms, serves as the legislative body. A County Administrative Officer is appointed by the Board and runs the day-today business. ii The County provides the full-range of services contemplated by statute. These services include public protection, highways and streets, sanitation, health and social services, planning and zoning and general administrative services. ECONOMIC CONDITIONS AND OUTLOOK Long-term population and job growth projections remain positive. As of January 1, 2002, the County's population was estimated at 981,555, an increase of 23.1 percent since 1990. A study prepared by the Association of Bay Area Governments projects a 36.0 percent increase in population between 2000 and 2040. The County's October 2002 jobless rate increased from 3.6 percent to 5.1 percent since October 2001. Consistent with historical performance, it was significantly below the State-wide average of 6.2 percent. The County's economy is very diverse; major industries include petroleum refining, steel manufacturing, chemicals, electronic equipment,paper products, services and food processing. The County consistently ranks as a leading county in both per capita and household income. Additional information on the County's economic conditions and outlook is presented in the MD&A and in the Notes to the Basic Financial Statements. MAJOR INITIATIVES AND SERVICE EFFORTS AND ACCOMPLISHMENTS The County continued to explore and initiate ways to improve its operations to provide the most efficient and effective level of service to the public. The following highlights some of the County's major accomplishments, initiatives and service-level efforts for fiscal year 2001-2002: + The County has been successful in maintaining favorable bond ratings, which continue to produce significant taxpayer savings through lower borrowing costs. Debt issuances during the period included: o The County sold$70 million in Tax and Revenue Anticipation Notes in September 2001. o Private placement leases were refunded with upfront debt-service savings of$280,000. o The County of Contra Costa Public Financing Authority issued$12,650,000 in lease revenue bonds in June 2002. + The County continued its efforts to conserve energy and successfully completed ten energy conservation projects in nine buildings and the Main Detention Facility, which included replacing 15- 30 year-old heating, ventilation and air conditioning (HVAC) systems and upgrading digital control systems. The completion of these projects will result in estimated cost savings in excess of$200,000 per year. The funding for these projects carne from low-interest loans from the California Energy Commission. iii The County also continued to explore new ways to save energy and, consistent with the County's sustainable building policy, developed the solar 309 KVP Photovoltaic System projects. The $2 million project was financed 50 percent by receiving $1 million in grant funding from P G & E to install photovoltaic roof panels at 50 Douglas Drive and the Main Detention Facility. This is the first installation of photovoltaic panels by the County and is estimated to annually reduce energy costs by approximately$80,000. _. • This year the County redesigned its Recommended Budget format to link departmental budgets with actual performance. The new Recommended Budget format includes performance measures and workload and outcome indicators. This change increases departmental accountability and assists the Board of Supervisors in making sound policy and budgetary decisions. • Because of the County's continued efforts to assess program costs with actual performance and benefits, the County secured a three-year grant for performance software for the "Spirit of Caring" initiative (Mental Health Services). This software is expected to generate data about costs, services, and performance outcomes that will lay the foundation for a cost/benefit analysis of prevention/early intervention efforts(Contra Costa Futures Initiative). • The Community Services Department was recognized as a "Program of Achievement" by the National Head Start Association, which affirms that a program has successfully performed at a very high level of quality over a sustained period of time. This recognition was given to Community Services as the first such award in the history of California and as the second such award in the West Coast Region IX. • The County continued to focus on public outreach and information. The County's Government Access Channel, CCTV, received nine awards for excellence in cable programming, including two national Telly awards and seven Western Access Video Excellence(WAVE)awards. • Library service throughout the County continued to be enhanced. In 2001-2002, the Board of Supervisors provided $1.3 million from the County's General Fund to the Library. This funding assisted in enabling the following: o Creating a strong partnership with cities by requiring cities to match the County's contribution in order to receive County funds. o Providing fair and equitable library service throughout the County, including the County funding the contribution match for unincorporated areas. o As a result of the County's efforts and commitment to enhancing library services, the number of library hours per week increased by 22 percent over the prior year and the libraries were accessible for additional evening hours. o For the first time, library circulation reached the 4 million mark, library circulation was not this high even when libraries were open 60 hours a week. IV o The County Library received a $2 million donation from Mirant California, LLC which will provide$400,000 annually over the span of five years. In accepting these funds,the Board of Supervisors requested the East Region Library Board to develop a service plan utilizing these funds. The East Region Library Board recommended,and the County's Board of Supervisors approved, using these funds to increase library services in East County by purchasing additional books and implementing after-school library programs. • The County continued to improve assistance to low-income parents by acquiring a new Head Start Center in Antioch. This newly acquired campus will allow the County to expand services provided by Head Start. The Head Start Program is critical in the County's efforts to assist low-income parents in becoming successful participants in the work force and/or move from welfare to work. • The County continued its commitment to provide excellent health care in a quality environment: o The Pittsburg Health Center was relocated from a very antiquated building to a newly renovated Los Medanos Community Clinic in February 2002. o Construction of a Martinez Ambulatory Care building at the hospital campus in Martinez. • An excellent quality of health care continued to be provided and expanded. The Contra Costa Health Plan's Advice Nurse Program became the first public entity to receive accreditation from the Utilization Review Accreditation Commission. The program was expanded to provide services under contract to eight other counties and now covers 245,000 citizens. FINANCIAL INFORMATION County management is responsible for establishing and maintaining internal controls designed to ensure that the assets of the County are protected from loss, theft or misuse, and that accounting data are compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. Budgetary Controls The objective of the County's budgetary controls is to ensure compliance with legal provisions embodied in the annual budget approved by the Board of Supervisors. Budgetary control is maintained at the object level for all annually budgeted funds; however, the legal level of control is at the department level. Using the County's automated accounting system, the Auditor-Controller restricts each department's expenditures to the amounts appropriated by the Board of Supervisors for the year. Increases in budget appropriations must be approved by the Board of Supervisors as a transfer from the Reserve for Contingencies, as a transfer from another appropriation,or as an appropriation of new or unanticipated revenue. No department is permitted to spend more than its available appropriations. Any appropriations remaining in the departments at the end of the fiscal year automatically lapse and are transferred to fund balance. The year-end fund balance, along with projected v revenues, becomes available for appropriation the following year. An encumbrance accounting system is used to facilitate effective budgetary control. An encumbrance reserves a portion of an appropriation at the time a commitment is made to acquire goods or services. Open encumbrances are reported as reservations of fund balances at June 30,2002,and are re-appropriated as part of the following year's budget. Additional information on budget policy and control is presented in the Note to Required Supplementary Information on page 80. General Governmental Functions The financial activities of the general governmental functions are reported in the General, Special Revenue,Debt Service, Capital Projects and Permanent Funds. Included in these Funds are the special districts governed by the Board of Supervisors and the County's blended component units except for the Housing Authority, which is included in enterprise operations. Enterprise Operations The County's business-type activities are reported in the Enterprise Funds. These include the County Hospital, Health Maintenance Organization,Airport,Housing Authority, Sheriff Law Enforcement Training Center and the Major Risk Medical Insurance Enterprise Funds. Cash Management Cash temporarily idle during the year was invested in accordance with California Government Code Section 53600 (et seq.) which allows investment maximums of 40.0 percent in bankers' acceptances, 30.0 percent in negotiable certificates of deposit, and up to 30.0 percent in commercial paper. There is no limit on investments in collateralized certificates of deposit and U.S. Government issues. The County Treasurer continues to have a more restrictive investment policy than required by law. The Treasurer's investment policy was approved by the Board of Supervisors. In accordance with Government Code Sections 27130-27137,an investment oversight committee has reviewed the quarterly investment reports prepared by the Treasurer. The average yield on investments for the fiscal year ended June 30,2002,was 3.27 percent. Debt Administration The County finances its cash requirements prior to collection of taxes by short-term borrowing. The 2001-2002 Tax and Revenue Anticipation Notes of$70,000,000 received ratings of MIG I from Moody's Investors Service and SP-1+ from Standard and Poor's Corporation. These are the highest ratings for this type of borrowing. For long term obligations Standard and Poor's Corporation has given the County an Issuer Credit Rating of AA. The County has capital lease obligations under lease/purchase agreements for various County buildings and other property. Past agreements have been made principally with the Contra Costa County Public Facilities Corporation, a non-profit public benefit corporation which assists the County in financing public buildings and facilities. Beginning in fiscal year 1997-1998,most new agreements have been and will be made with the County of Contra Costa Public Financing Authority, a joint powers authority consisting of the County and the Redevelopment Agency. vi Risk Management The County is self-insured for workers' compensation, general and automobile liability, medical malpractice, dental, management long-term disability and unemployment insurance. The County maintains excess insurance policies with private insurers to cover additional losses. The County's Risk Management office administers claims for the various programs, provides loss prevention services and minimizes risks through various risk control strategies. For specific information on coverage see Note 18 in the Notes to the Basic Financial Statements. Pension Trust Fund Operations The County participates in and contributes to a cost-sharing, multi-employer defined benefit pension plan that is governed by the County Employees Retirement Law of 1937 and which is administered by the Contra Costa County Employees'Retirement Association (the Association). Financial activities of the plan are reported in the County's Pension Trust Fund and a Comprehensive Annual Financial Report is available from the Association. Additional information about the plan is also presented in Note 15 in the Notes to the Basic Financial Statements in this report. The Association's address can be found in Note I.A. OTHER INFORMATION Independent Audit For over 60 years the policy of the County has been to require an annual audit of the financial statements of the County by independent certified public accountants. The Board of Supervisors selected the firm of Macias, Gini &Company LLP to perform the fiscal year 2001-2002 audit. Awards The Government Finance Officers Association of the United States and Canada(GFOA)awarded a Certificate of Achievement for Excellence in Financial Reporting to Contra Costa County for its fiscal year 2000-2001 Comprehensive Annual Financial Report. This was the twentieth consecutive fiscal year the County has received this award. In order to be awarded a Certificate of Achievement, the County must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. Such a report must satisfy both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid only for a period of one year. We believe our current report continues to conform to Certificate of Achievement requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. vii Web Site The County maintains an Internet web site with an increasing amount of information useful to its citizens at http://www.co.contra-costa.ca.us. This document is also available there. Acknowledgments The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Office of the Auditor-Controller. I would like to express my appreciation to all members of the Office who assisted and contributed to its preparation. I would also like to thank the members of the Board of Supervisors and the County Administrator for their interest and support in planning and conducting the financial operations of the County in a responsible and progressive manner. Respectfully submitted, Kenneth I Corcoran Auditor-Controller Viii .w.N.�<M<.�., �r�. .� .,M. amu.... ....... ....... .. ....:.: ..w ��"'�.«°°°"°• COUNTY OF CONTRA COSTA PUBLIC OFFICIALS June 30,2002 ELECTED OFFICIALS Supervisor,District 1 John Gioia Supervisor,District 2 Gayle B.Uilkema Supervisor,District 3 Donna Gerber Supervisor,District 4 Mark De Saulnier Supervisor,District 5 Federal Glover Assessor Gus Kramer Auditor-Controller Kenneth J.Corcoran Clerk-Recorder Stephen L.Weir District Attorney-Public Administrator Gary T.Yancey Sheriff-Coroner Warren E. Rupf Treasurer-Tax Collector William J.Pollacek APPOINTED OFFICIALS County Administrator John Sweeten County Counsel Silvan Marchesi County Librarian Anne Cain County Probation Officer Steve Bautista Director of Animal Services Michael G.Ross Director of Building Inspection Carlos Baltodano Director of Child Support Services Linda M.Dippel Director of Community Development Dennis Barry Director of Community Services Tony Colon Director of Cooperative Extension Shelley Murdock Director of Employment and Human Services John Cullen Director of General Services Barton J.Gilbert Director of Health Services William Walker,MD Director of Human Resources Leslie T.Knight Director of Information Technology Steven Steinbrecher Director of Public Works Maurice Shiu Agricultural Commissioner-Director of Weights and Measures Edward P.Meyer Public Defender David Coleman III Veterans'Services Officer Gary D.Villalba Chief,Bethel Island Fire Protection District David Wahl Chief,Contra Costa Fire Protection District Keith Richter Chief,Crockett-Carquinez Fire Protection District Jerry Littleton,Jr. Chief,East Diablo Fire Protection District Paul Hein Chief,Oakley Fire Protection District Bob Pastor AFFILIATED ORGANIZATIONS Administrator,Contra Costa County Employees'Retirement Association Patricia Wiegert Executive Director,Housing Authority of the County of Contra Costa Robert McEwan President,Contra Costa County Public Facilities Corporation John E.Whalen Executive Director,Contra Costa Children and Families Commission Brenda Blasingame Executive Director,County of Contra Costa Public Financing Authority John Sweeten Executive Director,Contra Costa County Redevelopment Agency John Sweeten Executive Director,In-Home Supportive Services Public Authority Eldon Luce ix _. .... tWi w W 'a a w d � A � O oat q � d �n _ w a Q D A W _ o W O � O X05sscc a � zg& Ut�, v waaa, °y . AsaU° wa [= G � q r+ gZpzdd d mUCLM d W N � a a o �syy W [Or i" y e L sq a m a •7 W 1 V U ZCC Z w � C � � WE" � 8i '� p" � m ✓ Uf S�+u o �. � pa y n L rig yy r� Q en a Q a d "t �, P. a nA a U U „� •x d T� p, ,r-1 IN W U .°�. O O U U �✓ Pte. AG i�i F W O W A3 CJ U {a �.7 46 w a a i x Certificate of Achievement for Excellence in Financial Deporting Presented to County of Centra Costa, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting. Prtsident -- CNIEASn j }r� Executive Director xi 1 - � r `cou ^ ■ ■ ■ SECTION Macias,Gini&Company up - CerHlied PvG1i C.nc,;nu nt anis and ,....� ' Management Consuiten2s „?? <.. , The Honorable Board of Supervisors County of Contra Costa Martinez,California INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fined, and the aggregate remaining fund information of the County of Contra Costa, California(County), as of and for the fiscal year ended June 30, 2002, which collectively comprise the County's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Contra Costa County Housing Authority (Authority),a blended component unit of the County,which represents 10.8 percent of the assets and 1.6.3 percent of the revenues of business-type activities and represents 0.8 percent of the assets and 2.2 percent of the revenues of the aggregate remaining fund information. Also,we did not audit the financial statements of the Contra Costa Children and Families Commission (Commission), a discretely presented component unit of the County, which represents 100.0 percent of the discretely presented component unit opinion unit. Those financial statements were audited by other auditors whose reports thereon have been furnished to us,and our opinion, insofar as it relates to the amounts included for the Authority and Commission,is based on the reports of the other auditors. 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 the significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinions. In our opinion,based on our audit and the reports of other auditors,the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities,the discretely presented component unit, each major fund, and the aggregate remaining fund information of the County as of June 30,2002,and the respective changes in financial position and cash flows,where applicable, thereof for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note LB to the basic financial statements, the County adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis—for State and Local Governments; GASB Statement No.37,Basic Financial Statements-- and Management's Discussion and Analvsis —for State and Local Governments: Omnibus; GASB Statement No. 38, Certain Financial Statement Note Disclosures; and GASB Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements,effective July 1,2001. In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2002, 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 grants. 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. 1 The management's discussion and analysis and general fund budgetary comparison schedule,as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. 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 do not express an opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements and,in our opinion,based on our audit and the reports of other auditors,are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements and,accordingly,we express no opinion on them. Certified Public Accountants Walnut Creek,California December 20,2002 2 __ ......... ......... ......... ......... ......... ......... ......... ....._... ............. _....._.. ......... ......... ......... ......... .................................................................................... ..... ......... ......... COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 MANAGEMENT'S DISCUSSION AND ANALYSIS This section of the County of Contra Costa's (County) Comprehensive Annual Financial Report presents a discussion and analysis of the financial activities of the County for the fiscal year ended lune 30, 2002. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS • The assets of the County exceeded its liabilities at the close of fiscal year 2001-2002 by $895,371,000 (net assets). Of this amount, $148,090,000 (unrestricted net assets) may be used to meet the County's ongoing obligations to citizens and creditors,$270,857,000 is restricted for specific purposes(restricted net assets)and $476,424,000 is invested in capital assets,net of related debt. • The County's total net assets increased by$48,623,000 during the fiscal year. • As June 30, 2002, the County's governmental funds reported ending fund balances of $468,266,000. Approximately 79.2 percent of this total amount,$370,868,000,is unreserved fund balance. • As of June 30, 2002,unreserved fund balance for the General Fund was$115,658,000 or 12.5 percent of total General Fund expenditures of$925,684,000. • The County's total debt decreased by$9,570,000 or 1.3 percent during fiscal year 2001-2002. • The downturn in the equity markets has resulted in reduced state revenues and losses in the investments of the Contra Costa County Employees' Retirement Association(CCCERA). OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The County's basic financial statements are comprised of three parts: (1) Government-wide financial statements, (2) Fund financial statements, and (3) Notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County's finances,in a manner similar to a private-sector business. The statement of net assets presents information on all of the County's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. 3 .......... .................................................. COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 The statement of activities presents information showing how the County's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs,regardless of the timing of related cash flows. Thus,revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and sick leave. Both of the government-wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public protection, health and sanitation,public assistance, education, public ways and facilities and recreation and culture. The business-type activities of the County include the County Hospital, Health Maintenance Organization, Airport, Housing Authority,Sheriff Law Enforcement Training Center and Major Risk Medical Insurance. Fund Financial Statements The fund financial statements report groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities and objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds,and fiduciary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of resources that are available _. for spending as well as on balances of resources that are available for spending at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide statements. By doing so,readers may better understand the long- term impact of the County's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains 26 individual governmental funds (e.g. General, special revenue, debt service, capital projects and permanent) for reporting purposes. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues,expenditures, and changes in fund balances for the General Fund,which is considered to be a major fund. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements and schedules elsewhere in this report. The County adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with this budget. 4 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 Proprietary funds used by the County are of two different types: enterprise funds and internal service funds. Proprietary fund financial statements provide the same type of information as the government-wide financial statements,only in more detail. s Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for the operations of its County Hospital, Health Maintenance Organization, Airport, Housing Authority, Sheriff Law Enforcement Training Center and Major Risk Medical Insurance. • Internal service funds are an accounting device used to accumulate and allocate costs internally among the County's various functions. The County uses internal service funds to account for its administrative costs and payment of claims for its various insurance programs to protect County assets and employees. They have been allocated between the governmental functions and business-type activities in the government-wide financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary funds are used to account for resources held for the benefit of entities legally separate from the County and individuals, which are not part of the reporting entity. The Contra Costa County Employees' Retirement Association pension plan, the County's investment trust fund, private-purpose trust fund and agency funds are reported under fiduciary fiords. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the County's own programs. The accounting _ used for fiduciary funds is much like that used for proprietary funds. Notes to the Basic Financial Statements The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information concerning the County's General Fund budget and actual comparisons and progress in funding its obligation to provide pension benefits to employees. Combinina Statements and Schedules The combining statements and schedules referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information (other than MD&A). Component Units The blended component units, as described in Note LA in the notes to the basic financial statements are included in all three parts of the County's basic financial statements. The County and its blended component units constitute the primary government. In addition to the blended component units, the government-wide financial statements and the notes to the basic financial statements also include the discretely presented component unit described in Note LA in the notes to the basic financial statements. 5 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 GOVERNMENT-WIDE FINANCIAL ANALYSIS This is the first year the County has reported its financial activities and balances in accordance with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis—for State and Local Governments, The County has not restated prior year information for the purpose of providing the comparative data for the Management's Discussion and Analysis (MD&A) because some of that infonnation was not readily available. However, in future years, prior year information will be available and a comparative analysis of government-wide data will be presented. COUNTY S NET ASSETS June 30,2002 (In Thousands) Governmental Business-Type Activities Activities Total Assets: Current and other assets $ 1,049,662 125,383 1,175,045 Capital assets 633,982 191,534 825,516 _ Total Assets 1,683,644 316,917 2,000,561 Liabilities: Current and other liabilities 183,899 82,365 266,264 Longterm liabilities 671,106 167,820 838,926 Total Liabilities 855,005 250,185 1,105,190 Net Assets: Invested in capital assets,net of related debt 437,866 38,558 476,424 Restricted 259,481 11,376 270,857 Unrestricted 131,292 16,798 148,090 Total Net Assets $ 828,639 66,732 895,371 Analysis of Net Assets As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. The County's assets exceeded liabilities by$895,371,000 at June 30,2002. The largest portion of the County's net assets, $476,424,000, or 53.2 percent, reflects its investment in capital assets(e.g., land, infrastructure,buildings,machinery,and equipment),less any related debt used to acquire those assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 6 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 An additional portion of the County's net assets, $270,857,000, or 30.3 percent, represents resources that are subject to external restrictions on how they may be used. The major restriction on net assets, $232,651,000,is for legally segregated taxes, grants and fees. The remaining balance, $148,090,000 or 16.5 percent, is unrestricted net assets and may be used to meet the County's ongoing obligations to citizens and creditors. COUNTY'S CHANGE IN NET ASSETS For the Fiscal Year Ended June 30,2002 -- (In Thousands) Govemmental Business-Type Activities Activities Total Revenues: Program revenues: Charges for services $ 250,536 290,866 541,402 Operrabrig grants and contributions 544,900 94,474 639,374 Capital grants and contributions 12,573 7,194 19,767 General revenues: Taxes 238,684 238,684 Grants/contributions not restricted 77,741 77,741 Inves a=t earnings 27,035 298 27,333 Other 20,158 1,076 21,234 Total revenues 1,171,627 393,908 1,565,535 Expenses: _. General government 115,534 115,534 Public protection 365,757 365,757 Health and sanitation 184,109 184,109 Public assistance 328,450 328,450 Education 16,364 16,364 Public ways and facilities 56,197 56,197 - Recreation and culture 793 793 Interest on debt 36,340 3040 County hospital 229,584 229,584 Health maintenance organization 112,386 112,386 Airport 4,323 4,323 Housing authority 65,038 65,038 Major risk medical insurance 931 931 Sheriff law enforcement training center 1,106 1,106 Total ewes 1,103,544 413,368 1,516,912 Charge m net assets before transfers 68,083 (19,460) 48,623 Transfers (11,063) 11,063 .. Change in net assets 57,020 (8,397) 48,623 Net assets,beginning of year 771,619 75,129 846,748 Net assets,end ofyear $ 828,639 66,732 895,371 7 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 Analysis of the Changes in Net Assets The County's net assets increased $48,623,000 during fiscal year 2001-2002. Governmental activities increased net assets by$57,020,000;however,business-type activities decreased net assets by$8,397,000. The changes are explained below in the governmental activities and business-type activities discussions. Expenses and Program Revenues-Governmental Activities 0 Expenses i Program Revenues 400- 350 a i 300 i e 250 0 :V_ 200- ISO 00 150 100- 50 General Public Health and Public Education Public ways and Recreation and Interest on debt govetntrent protection sanitation assistance facilities culture Revenues by Source-Governmental Activities Capital grants and i veshnent earnings contributions n 2.3% 1.1% Other 1.7% Charges for services Grants/contributions not 21,4% restricted 6.6,0 ;Y: r 3 Taxes 20.4% Operating grants and contributions 46.5% 8 COUNTY OF CONTRA.COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 304 2002 Governmental activities increased the County's net assets by $57,020,000, which was partially offset by a reduction in net assets from business-type activities. • Property taxes increased as a result of a 10.5 percent increase in assessed valuation. This was due to strength in the real estate market and construction activity in a period of historically low interest rates. • Grants and contributions were up due to increased State funding for public safety services,family income maintenance and other social services. There was also increased Federal funding for childcare,highway construction and family support services. 0 Expenses Expenses and Program Revenues-Business-type Activi tes ®Program Revenues 250 200 i h 350 c 100 _ 50 Cotmty hospital Health maintenance Airport Housing authority Major risk medical sheriff law organization instuarice enforcernent training center Revenues by Source-Business-type Activities Other 2.2% Operating grants and contributions - 24.0°io Charges for services 73.8% 9 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 Business-type activities decreased the County's net assets by$8,397,000. Expenses exceeded program revenues in the County Hospital, Health Maintenance Organization, Airport, Housing Authority and Sheriff Law Enforcement Training Center. • The cost of medical services and supplies exceeded the increases in funding sources for the costs. • The Sheriff Law Enforcement Training Center began operation in fiscal year 2001-2002 and incurred start-up costs that were not yet recovered. FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As noted earlier, this is the first year the County has reported its financial activities and balances in accordance with GASB Statement No. 34. To comply with this Statement, many of the financial balances and activities previously reported in trust and agency funds were reclassified and are now reported in governmental funds. The County has not restated prior year information for the purpose of providing the comparative data for the Management's Discussion and Analysis (MD&A) because some of that information was not readily available. However, in future years, that prior year information will be available and a comparative analysis of County fund data will be presented. The following is an analysis of the activities of the County's funds for fiscal year 2001- 2002 as reported in the fund-basis statements. Governmental Funds The focus of the County's governmental funds is to provide information on near-term inflows, outflows, and _ balances of resources that are available for spending. Such information is useful in assessing the County's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Types of government funds reported by the County include the General,special revenue,debt service,capital projects and permanent funds. As of June 30,2002,the County's governmental funds reported combined ending fund balances of$468,266,000, an increase of$20,227,000 in comparison with the prior year. Approximately $370,868,000, or 79.2 percent of these fund balances, constitutes unreserved fund balances, which are available for spending at the County's discretion. The remainder of fund balances is reserved to indicate that it is not available for new spending because it has already been committed: (1) for encumbrances-to liquidate contracts and purchase orders of the prior period($57,608,000), (2)to reflect advances due from other funds and inventories($6,893,000), (3) to pay debt service($27,464,000),or(4)for miscellaneous other restricted purposes($5,433,000). The General Fund is the primary operating fund of the County. At June 30,2002,unreserved fund balance of the General Fund was $115,658,000, while total fund balance reached$169,402,000. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 12.5 percent of total General Fund expenditures, while total fund balance represents 18.3 percent In the Public Financing Authority Debt Service Fund, which is reported as part of the nonmajor governmental funds, capital outlay expenditures exceeded proceeds from the issuance of debt in fiscal year 2001-2002 by �t..w 10 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 approximately$12,000,000. This resulted in a similar reduction in fund balance. It is not unusual to have timing differences between funding and expenditures for capital projects. Proprietary Funds As mentioned earlier, the County's proprietary fund financial statements provide the same type of information found in the government-wide financial statements,but in more detail. Net assets at June 30, 2002, were $20,858,000 for the County Hospital Enterprise Fund, $5,458,000 for the Health Maintenance Organization Enterprise Fund and $48,611,000 for the other enterprise funds. As a result of operations during the year,net assets of the County Hospital Enterprise Fund decreased by$4,552,000,net assets _ of the Health Maintenance Organization Enterprise Fund increased by $99,000 and the net assets of the other - enterprise funds decreased by$2,571,000. Net assets of the internal service funds were a deficit of$11,830,000. As a result of operations during the year, net assets of the Workers' Compensation Insurance County General Internal Service Fund decreased by $11,799,000, the net assets of the Workers' Compensation Insurance Fire Protection Internal Service Fund - decreased by$2,167,000 and the net assets of the other internal service funds increased by$394,000. The County accelerated its Workers' Compensation claim processing to reduce the future effects of rising medical treatment costs but this resulted in the actuary further increasing the reserve for benefits and claim expense. See Note 3 in the notes to the basic financial statements for further information. GENERAL FUND BUDGETARY HIGHLIGHTS The County's final budget differs from the original budget in that it contains carry-forward appropriations for various programs and projects, and supplemental appropriations approved during the fiscal year. Total budgeted revenues were increased$138,116,000 or 15.5 percent, in the final budget. Actual revenues were less than final budgeted revenues by$43,114,000,or 4.2 percent. Total budgeted expenditures were increased$141,434,000 or 14.7 percent, in the final budget. Actual expenditures were less than final budgeted expenditures by $179,058,000,or 16.2 percent. Significant factors affecting these changes were as follows. Original Budget vs.Final Budget Revenue Variances • Budgeted Intergovernmental revenues were increased because of additional state and federal grants. State grant increases were for Medi-Cal health care, family income maintenance,public safety services, other social services and miscellaneous State aid. Federal grant increases were for of childcare,highway construction and family support. • Budgeted Charges for services and Other revenues were increased to include additional funding for remodeling and construction projects. Expenditure Appropriation Variances • The Final Budget for General Government-Building Maintenance was increased to reclassify interfund charges as expenditures,which were previously recorded as transfers. 11 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 • The Final Budget for General Government - Plant Acquisition included additional appropriations for building and improvement projects that were funded during the year. • The Final Budget for Public Assistance - Community Development was increased for greater than expected affordable housing construction and acquisition activity under HUD Block Grants. + The Final Budget for Public Assistance - Employment and Human Services Department (EHSD) Child and Family Services was increased due to additional spending requirements for Foster Care and Aid To Adoption programs. + The Final Budget for Public Ways and Facilities - Road Construction was increased for projects identified and funded during the year. Final Budget vs.Actual Amounts Revenue Variances + Property taxes were greater than expected as real estate valuations were stronger than anticipated and projected,given the recession. • Licenses,permits and franchise fees revenue included gas surcharge payments received from Pacific Gas and Electric Company (PG&E). These payments were greater than budgeted, as the increase in energy prices was not anticipated. • Intergovernmental revenues were less than budgeted because the budgeted revenues included fail funding of capital projects and these projects were not completed during the year. State reimbursements to the Employment and Human Services Department were less than expected. • Charges for services revenues were less than budgeted because some County construction projects were not completed during the year, as planned. The related funding for construction services from other County funds and external sources was not realized • Other revenue was less than budgeted because some County construction projects were not completed during the year, as planned. The related funding for other construction costs from other County funds and external sources was not realized. Expenditure Variances • The Final Budget for General Government - Employee Benefits included appropriations to fund employee benefits, improve the countywide payroll system, and manage the employee benefit programs that were less than anticipated. • The Final Budget for General Government - Plant Acquisition included appropriations for various building improvement and construction projects that were not completed during the year. • The Final Budget for Public Assistance - EHSD Workforce Services included appropriations based on expected Intergovernmental revenues that were not realized. 12 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 * The Final Budget for Public Ways and Facilities- Public Works included appropriations for the design, construction and maintenance of County roads that were not completed during the year. * The Final Budget for Public Ways and Facilities - Road Construction included appropriations for construction of the State Route 4 Bypass project that was not completed during the year. CAPITAL ASSET AND LONG-TERM DEBT ACTIVITY Capital Assets Capital assets for the governmental and business-type activities are presented below to illustrate changes from the prior year: COUN N"S CHANGES IN CAPITAL ASSETS (Net of Depreciation) (In Thousands) Increase/ Governmental activities Business-type activities Total (Decrease) 2001 2001 2001 Percent 2002 as restated 2002 as restated 2002 as restated Chane hiftustrtrcture $ 239221 227,837 239,221 227,837 5.0 % Land and easements 60,108 59,997 10,464 10,454 70,572 70,461 0.2 Sm.ictures and improverrents 238,772 232,544 130,564 136,806 369,336 369,350 Equipment 42,379 41,284 13,967 18,795 56,346 60,079 (6.2) - Construction in progress 53,502 22,810 36,539 25,051 90,041 47,861 88.1 Total $ 633,982 584,472 191,534 191,116 825,516 775,588 6.4 % The County's investment in capital assets for its governmental and business type activities as of June 30, 2002, amounted to $825,516,000 (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, highways, drainage systems, and bridges. The total increase in the County's investment in capital assets for fiscal year 2001-2002 was 6.4 percent (an 8.5 percent increase for governmental activities and a 0.2 percent increase for business-type activities). Major capital asset events during fiscal year 2001-2002 included the following: * Construction in progress on two office buildings for the Employment and Human Services Department in Antioch amounted to$12,110,000 for the year. * Construction in progress on a 242-bed expansion of Juvenile Hall amounted to$10,386,000 for the year. * Construction in progress on a new five-courtroom Family Law Center amounted to$6,491,000 for the year. * Construction in progress on roads amounted to$8,070,000 for the year. * Construction in progress on drainage systems amounted to$14,187,000 for the year. 13 COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 * Construction in progress on hospital ambulatory care clinics amounted to$9,778,000 for the year. _. At June 30, 2002, the County had construction commitments totaling$36,063,000 as described in Note 19.E in the notes to the basic financial statements. Additional information on the County's capital assets can be found in Note 7 in the notes to the basic financial statements. Long-Term Debt Long-term debt for the governmental and business-type activities are presented below to illustrate changes from the prior year: COUNTY'S OUTSTANDING DEBT Capital Lease Obligations,Certificates of Participation,Pension Obligation Bonds,Notes Payable,Other Bonds Payable, Lease Revenue Bonds,Tax Allocation Bonds and Special Assessment Debt (In Thousands) Increase/ Governmental activities Business-type activities Total (Decrease) Percent 2002 2001 2002 2001 2002 2001 Change Capital lease obligations $ 16,238 8,988 2,146 2,748 18,384 11,736 56.6 % Certificates of participation 58,665 61,465 132,550 135,940 191,215 197,405 (3.1) Pension obligation bonds 281,425 297,340 281,425 297,340 (5.4) Notes payable 6 984 1,044 984 1,050 (6.3) Other bonds payable 8,055 8,505 8,055 8,505 (5.3) Lease revenue bonds 111,420 102,245 31,760 32,010 143,180 134,255 6.6 Tax allocation bonds 54,525 55,360 54,525 55,360 (1.5) Special assessment debt 18,589 20,276 18,589 20,276 (8.3) Total $ 548,917 554,185 167,440 171,742 716,357 725,927 (1.3)% At June 30, 2002, the County had total long-term debt outstanding of$716,357,000. The County's legal debt limit was $4,674,510,000. The County's total debt decreased by $9,570,000, or 1.3 percent, during fiscal year 2001-2002. In June 2002,the County of Contra Costa Public Financing Authority issued$12,650,000 in lease revenue bonds to finance various capital projects of the County. The County's credit ratings for pension obligation bonds are AA- by Standard & Poors and Aa3 by Moody's Investors Service. Its credit ratings for lease revenue bonds and certificates of participation are AA-by Standard &Poors and A I by Moody's Investors Service. Additional information of the County's long-term debt can be found in Note I l in the notes to the basic financial statements. KNOWN FACTS,DECISIONS AND CONDITIONS THAT ARE EXPECTED TO HAVE A SIGNIFICANT EFFECT ON FINANCIAL POSITION OR RESULTS OF OPERATIONS + The State has suffered from the economic slowdown, and the threat of terrorist activities. Due in part to its diversity, the County's economy has been fairly resilient, as evidenced by only a 1.5 percent increase in 14 ................................ N COUNTY OF CONTRA COSTA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30,2002 unemployment since October 2001. However, governmental revenues have been hit harder than the overall economy. The State benefited substantially from income taxes received from capital gains and stock options during the market rise in the late 1990's to 2001. In fiscal year 2000-2001., State revenue from this source peaked at$17.7 billion,which amounted to nearly 25 percent of State General Fund revenue. One year later, this revenue fell $8.2 billion to$9.5 billion. As a result of this and other factors,the State is addressing a$35 billion shortfall of projected revenues compared to expenditures for the 18-month period of January 1, 2003, through June 30, 2004. This is expected to lead to a significant, but undetermined, reduction of County revenue. The County receives approximately 20 percent of its revenues from taxes and a significant portion of the remainder is provided by the State. • To attract and maintain a high quality workforce the County must provide salaries and benefits competitive with other potential employers such as the State, other governmental entities and the private sector. In recognition of this fact, the Board of Supervisors and most of the employee organizations agreed to extend their current labor agreements another three years, with new cost-of-living adjustments and an enhanced retirement benefit. The cost-of-living adjustments range from five to six percent for the first year and from three to five percent for each of the second and third years covered by the agreement. The new retirement benefit is commonly known as "3 percent at 50" (for safety members) and "2 percent at 55" (for general members). A further explanation of the retirement benefit can be found in Note 15 in the notes to the basic financial statements. + As a result of decisions in various lawsuits affecting retirement benefits and the enhanced benefits noted above,the Unfunded Actuarial Accrued Liability(UAAL)for the County is estimated to be$406,000,000 as of December 31,2001. In addition,approximately$473,000,000 of retirement investment losses attributable to the County had not been recognized as of June 30, 2002. These factors will result in higher costs to the County in future years. General Fund subsidies to the County Hospital and Health Maintenance Organization increased$6,249,000 from the prior year to $31,401,000 and $4,811,000, respectively. State budget cuts are expected and costs continue to rise more rapidly than revenue. Even with cost containment efforts in place,similar subsidies are expected to recur in fiscal year 2002-2003. • All of these factors were considered in preparing the County's budget for fiscal year 2002-2003. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County's finances for all those with an interest in the County's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the County Auditor-Controller, 625 Court Street,Room 103,Martinez,CA 94553-1282. 15 MySrr s•�y . * % / t 1 ♦ _ !� _ lljj� Ill ry �♦ CQU1� Mt� COUNTY OF CONTRA COSTA _. S"I ATE WENT OF NET ASSETS JUNE 30,2002 (In Thousands) Count Prnrraty Government Unit and de�r C; Governmental Business-type Clr lrill re First Assets: Activities Activities Total C:onnrrrission Cash and investments $ 476,700 78,035 554,735 Receivables(net) 148,95238,939 Inventories 45,316 194,268 2,088 Internal balances1,872 1,167 3,039 Due from fiduciary funds 16,108 (16,108) 13,934 Due from conTonent unit 354 334 Notes receivable 36,5 Prepaid item 25 1,659 38,184 and deposits 2,525 3,938 Lara!held far resale 6,5'63 19 1'286 11,286 Prepaid pension asset 278,723 27 ,723 Restricted cash and investrnents 72,583 11,376 Capital assets: 83,959 Nondepreciable 113,610 lneciable,net 47,0113 160,613 520,372 144,531 664,903 Total Assets 11683,644 3 .91_ 2,000,561 41,046 16 liabilities: Short term notes payable 70,000 70,000 Accouns Payable Accrued S and accrued liabilities 68,817 43,543 112,360 169 lie 3,888 1,379 5,267 Due to fiduciary funds 38S Dee to primary government 385 Welfare program advances 4,864 354 Deferred revenue 4,864 36,330 37,058 73,388 Long-term liabilities: Due within one year 51,241 6,207 Due in more than one 5 ,` �' 619,865 161,613 7811,47878 Total Liabilities 855,0005250,185 1,105,190 Net Assets: 523 Invested in capital assets,net of related debt Restricted for: 437,866 38,55$ 476,424 Legally segregated taxes,grants and fees 232,651 232,651 Debt service 24,751 !1,376 Permanent Fund: 36,127 Evendable 353 Nonexpendable 1,726 353 Chuildren's progr ms 1,726 Unrestricted 131,29233,558 16,798 148,090 6,965 Total Net Assets $ 828,639 66,732 895,371 -- 40,523 See acconVanying notes to the basic fr.tcia]staterrents. 17 COUNTY OF CONTRA COSTA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions -- Function/Program Activities: Primary Government: Governmental activities: General government $ 115,534 73,680 19,682 Public protection 365,757 100,344 119,742 76 Health and sanitation 184,109 51,533 80,561 Public assistance 328,450 1,648 308,577 Education 16,364 738 3,152 Public ways and facilities 56,197 22,557 13,134 12,497 Recreation and culture 793 36 52 Interest on debt 36,340 Total Governmental Activities 1,103,544 250,536 544,900 12,573 Business-type activities: County hospital 229,584 178,040 31,886 7,194 Health maintenance organization 112,386 I05,157 2,757 Airport 4,323 3,002 130 Housing authority 65,038 3,536 59,459 Major risk medical insurance 931 931 Sheriff law enforcement training center 1,106 200 242 Total Business-type Activities 413,368 290,866 94,474 7,194 Total Primary Government $ 1,516,912 541,402 639,374 19,767 Component unit: Children and Families First Commission $ 4,696 16,643 GENERAL REVENUES: Taxes: Property Sales - Other Grants/contributions not restricted Investment earnings Other TRANSFERS Total general revenues and transfers Change in net assets NET ASSETS,BEGINNING OF YEAR NET ASSETS,END OF YEAR See accompanying notes to the basic financial statements. 18 Net(Expenses)Revenues and Changes in Net Assets Business- Governmental type Component - Activities Activities Total Unit (22,172) (22,172) (145,595) (145,595) (52,015) (52,015) (18,225) (18,225) (12,474) (12,474) (8,009) (8,009) (705) (705) (36,340) (36,340) (295,535) (295,535) (12,464) (12,464) (4,472) (4,472) (1,191) (1,191) (2,043) (2,043) - (664) (664) (20,834) (20,834) (295,535) (20,834) (316,369) 11,947 211,376 211,376 11,616 11,616 15,692 15,692 77,741 77,741 27,035 298 27,333 733 20,158 1,076 21,234 (11,063) 11,063 352,555 12,437 364,992 733 57,020 (8,397) 48,623 12,680 771,619 75,129 846,748 27,843 $ 828,639 66,732 895,371 40,523 19 COUNTY OF CONTRA COSTA BALANCE SHEET Ct?VERNMENTAL FUNDS JUNE 30,2002 _.. (In Thousands) Other _. General Funds Total Assets: Cash and investments $ 59,033 340,306 399,339 Accounts receivable and accrued revenue(net) 135,481 11,656 147,137 Inventories 1,872 1,872 Due from other fiords 66,311 12,075 78,386 Due from component unit 354 354 Advances to other fiords 138 4,883 5,021 Notes receivable 29,246 7,279 36,525 Prepaid items and deposits 1,801 413 2,214 Land held for resale 1,286 1286 Restricted cash and investments 72,583 72,583 Total Assets $ 366,819 377,898 744,717 liabilities and Fund Balances Liabilities: Short term notes payable $ 70,000 70,000 Accounts payable and accrued liabilities 56,267 12,550 68,817 Due to other funds 18,482 34,475 52,957 Welfare program advances 4,864 4,864 Advances from other funds 5,021 5,021 Deferred revenue 47,804 26,988 74,792 Total Liabilities 197,417 79,034 276,451 Fund Balances: Reserved for: Encumbrances 50,342 7,266 57,608 Inventories 1,872 1,872 Advances to other funds 138 4,883 5,021 Prepaid items and deposits 1,392 413 1,805 Land held for resale 1,286 1,286 Housing projects 616 616 Debt service 27,464 27,464 Nonexpendable permanent funds 1,726 1,726 Unreserved,reported in: General f nd 115,658 115,658 Special revenue hinds 176,792 176,792 Debt service funds 29,092 29,092 Capital projects fuuxis 48,973 48,973 Permanent fund 353 353 Total Fund Balances 169,402 298,864 468,266 Total Liabilities and Fund Balances $ 366,819 377,898 744,717 See accompanying notes to the basic financial statements. 20 COUNTY OF CONTRA.COSTA RECONCE L ATION OF THE GOVFIWMEWFAL FuNEIS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30,2002 (In Thousands) Fund balances-total governmental funds(page 20) $ 468,266 Aamunts reported for govennnnental activities in the statement of net assets are different because; The pension assets resulting from contributions in excess of the annual required contribution in 2001 are not financial resources and therefore not repotted in the finds. 278,723 Capital assets used in govemrnental activities are not financial resources and therefore are not reported in the govannientral fields. 633,982 Accred revenue,which is not available soon enough to pay for the current period's expenditures,is deferred in the govenvetrtal fiords. 1,937 Notes receivable are not available to pay cm-ent-period expenditures and,therefore,are deferred in the governmental finds. 36,525 Intetrmal service funds are used by management to charge the costs of self insurance to individual finds. The assets and liabilities of these funds,except for the nnedical liability insurance fund,are included as goverrunental activities in the statement of net assets. (3,639) Interest on long-term debt is recognized as it accrues,regardless of when it is due. (3,888) Costs of issuance on 2002 lease revenue bond are not recognized as current year expenditures and are deferred. $ 412 Current year amortization of costs of issuance on 2002 lease revenue bond. (1) 411 Long-team liabilities,including bonds payable,are not due and payable in the current period and therefore are not reported in the govennnental funds. Certificates of participation (58,665) Lease revenue bonds (111,420) Tax allocation bonds (54,525) Special assessment bonds (18,589) Other bonds payable (8,055) Pension obligation bonds (281,425) Capital lease obligations {16,238) Conrpensatedabsences (34,761) (583,678) Net assets of goverxurental activities(page 17) $ 828,639 See acconywying notes to the basic financial statements. 21 COUNTY OF CONTRA COSTA STATEN ENT OF REVENUES,EXPINDTrURFS AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 On Thousands) General Other Fund Funds Total Revenues: Taxes $ 200,571 122,064 322,635 Licenses,pernits and franchise fees 23,782 11,495 35,277 Fines,forfeitures and penalties 14,508 4,017 18,525 Use of money and property 10,527 13,237 23,764 Intergoverru mMI 506,352 39,372 545,724 Charges for services 155,713 40,875 196,588 Other revenue 74,613 19,667 94,280 Total Revenues 986,066 250,727 1,236,793 Expenditures: Current: General governnrnt 128,375 1,976 130,351 Public protection 254,070 123,941 378,011 Health and sanitation 172,613 9,551 182,164 Public assistance 315,112 22,561 337,673 Education 205 16,162 16,367 Public ways and facilities 45,679 43,1.51 88,830 Recreation and culture 1,099 1,099 Debt service: Principal 25,110 25,110 Band issuance cost 412 412 Interest 2,215 34,092 36,307 Capital outlay 7,415 24,821 32,26 Total Expenditures 925,684 302,876 1,228,560 Excess(Deficiency)of Revenues Over (Under)Expenditures 60,382 (52,149} 8,233 Other Financing Sources(Uses): Transfers in 23,568 48,662 72,230 Transfers out (76,347) (6,946) (83,293) Proceeds from the sale of real estate 500 500 Proceeds from issuarrce of debt 12,650 12,650 Capital lease financing 9,907 9,907 Total Other king Sources(Uses) (42,872) 54,866 11,994 Net Change in Fund Balances 17,510 2,717 20,227 Fund Balances at Beginning of Year,as Previously Reported 144,607 257,017 401,624 Adjustments to beginning field balances 7,285 39,130 46,415 Fund Balances at Beginning of Year,as Restated 151,892 296,147 448,039 Mmd Balances at End of Year $ 169,402 298,864 468,266 See accompanying notes to the basic financial statements. 22 COUNTY OF CONTRA COSTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDTI URES,AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Net change in fund balances-total govemmental funds(page 22) $ 20,227 Ar rio nits reported for governmental activities in the statement of activities are different because: Revenues that were deferred in the governmental funds because they were unavailable are reported as current revenue. 12,953 C,overntnet"fiords report capital outlay as expenditures. However,in the statemrrt of activities,the cost of those assets is allocated over their estimated usefW lives and reported as depreciation expense. Expenditures for capital assets $ $$,677 Less loss on sale/retirement of capital assets (3,753) Less current year depreciation (35,414) 49,510 Some income reported in the governmental funds was previously reported in the statement of activities and therefore is not reported ---- as current income. (500) Long-term debt proceeds provide current financial resources to governmental fiords,but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the statement of net assets. Proceeds form lease revenue bonds (12,650) Deferral of bond issuance cost 412 Principal payments 27,768 _. Issuance of capital lease (9,907) 5,623 Soiree expenses reported in the statement of activities do not require the use of cement financial resources and therefore are not reported as expenditures in govennnental fiords. Change in long-term compensated absences (3,601) Armrtization of pension asset (14,835) Arrortization of bond issuance cost (1) Change in accrued interest payable (142) (18,579) Internal service fiords are used by management to charge the costs of certain activities to individual firnds. The net revenue of the internal service firnds is reported with governmental activities. (12,214) Change in net assets of goverrrnrental activities(page 19) $ 57,020 See accompanying notes to the basic financial statements. 23 COUNTY OF CONTRA COSTA STATEIVIENr OF FUND NET ASSETS PROPRIETARY FUNDS JUNE 30,2002 (In Thousands) Enterprise Funds Health Internal County Maintenance Service Hospital Organization Other Total Funds Assets: Current assets: Cash and investments $ 39,045 21,760 13,726 74,531 80,865 Accounts receivable and accrued revenue(net) 41,243 901 3,172 45,316 1,815 Inventories 1,158 9 1,167 Due from other funds 11,131 3,816 97 15,044 1,820 Notes receivable 1,659 1,659 Prepaid items and deposits 3,589 158 191 3,938 Total Current Assets 96,166 26,635 18,854 141,655 84,500 Restricted cash and investments 11,376 11,376 Capital assets: Nondepreciable 32,762 14,241 47,003 Depreciable,net 113,762 94 30,675 144,531 Total Assets $ 254,066 26,729 63,770 344,565 84,500 Inabilities and Net Assets Liabilities: Current liabilities: Accounts payable and accrued liabilities $ 25,796 15,306 2,441 43,543 Accrued interest payable 1,325 54 1,379 Due to other fiords 20,382 5,690 1,393 27,465 1,275 Deferred revenue 29,352 7,706 37,058 Current portion of long-term liabilities 4,209 27 709 4,945 19,079 Total Current Liabilities 81,064 21,023 12,303 114,390 20,354 Noncurrent portion of long-term liabilities: Capital lease obligations 1,546 1,546 Certificates of participation,net 115,343 115,343 Compensated absences 5,689 248 391 6,328 Claims payable 75,976 Bonds and notes payable,net 31,112 919 32,031 Total Noncurrent liabilities 152,144 248 2,856 155,248 75,976 Total liabilities 233,208 21,271 15,159 269,638 96,330 Net Assets(Deficit): Invested in capital assets, net of related debt (3,508) 94 411972 3&558 Restricted for debt service 11,376 11,376 Unrestricted(Deficit) 12,990 5,364 6,639 24,993 (11,839) Total Net Assets(Deficit) 20,858 5,458 48,611 74,927 (11,830) Total Liabilities wW Net Assets $ 254,066 26,729 63,770 84,5()0 Adjustmernt to reflect the consolidation of internal service fund activities related to enterptise funds. (8,195Y Net assets of business-type activities(page 17) $ 66,732 See acmgmying notes to the basic financial statements. 24 COUNTY OF CONTRA COSTA STATEMENT OF REVENUES,EXPENSES AND CHANCES IN FUND NET ASSETS PROPRIETARY FUNDS . FOR THE YEAR.ENDED JUNE 30,2002 (In Thousands) va Aerprise Funds Health Internal County Maintenance Service Hospital Or Other Total Funds Operating Revenues: Charges for services $ 178,040 105,157 7,669 290,866 31,429 Other revenue 1,074 1,074 1,036 Total Operating Revenues 178,040 105,157 8,743 291,940 32,465 Operating Expenses: Salaries and ernployee benefits 134,768 6,199 1,494 142,461 Services and supplies 64,662 105,977 2,346 172,985 9,618 Benefit and claim expense 42,706 Other charges 9,503 62,253 71,756 Depreciation 6,530 14 4,839 11,383 Total Opemting Expenses 215,463 112,190 70,932 398,585 52,324 Operating loss (37,423) (7,033) (62,189) 106,645) (19,859) Nonoperating Revenues(Expenses) .... State and federal grants 31,886 2,757 59,831 94,474 10 Investment income 294 294 3,277 Interest expense 9,977 . 43.7) .. (10,414) Total Nonoperating Revenues(Expenses) 21,909 2,757 59,688 84,354 3,287 Loss before Capital _._.._ Contributions and Transfers (15,514) (4,276) (2,501) (22,291) (16,572) Capital contributions 7,194 7,194 Transfers in 32,626 4,811 37,437 3,000 Transfers out (28,868) _ {436) (70) 29,374 Change in Net Assets (4,562) 99 2,571 7,034 13,572) Total Net Assets at Beginning of the Year, as Previously Reported 23,566 5,286 51,825 80,677 2,497 Adjustments to beginning net assets 1,854 _ 73 (643) 1,284 (755) Total Net Assets at Beginning of the Year, as Restated 25,420 5,359 51,182 81,961 1,742 Total Net Assets at End of Year $ 20,858 5,458 48,611 74,927 (11,830) Reconciliation otenterprise tunds change in net assets to staternent of activities: Change in net assets of enterprise funds. $ (7,034) Adjustment to reflect the consolidation of internal service fiuid activities related to enterprise fiords. 1,363) Change in net assets of business-type activities(page 19) See dying notes to the basic financial statements. 25 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Contra Costa County Redevelopment Agency The Contra Costa County Redevelopment Agency (ICDA) was established for the purpose of redeveloping certain areas of the County designated as project areas. Its board members are the same as the County Board of Supervisors. The financial activities of the RDA are included in the special revenue,debt service and capital projects funds which are reported as nonmajor governmental funds. Contra Costa County Public Facilities Corporation The Contra Costa County Public Facilities Corporation (PFC) was established to provide financing for the acquisition, construction, improvement and remodeling of public buildings and facilities for the County. The County appoints a voting majority of the governing board and is able to impose its will on the Corporation. The activities of the Corporation are included in a debt service fund which is reported as part of the nonmajor governmental funds and in the County Hospital Enterprise Fund. County of Contra Costa Public Financing Authority: The County of Contra Costa Public Financing Authority(PFA) is a joint powers authority consisting of the County and the RDA. The PFA was established to provide for the financing of public improvements, obligations, working capital and liability or other insurance programs of the County and the RDA. The members of the County Board of Supervisors also serve as the Directors of the PFA. The activities of the PFA are included in a debt service fund which is reported as part of the nonmajor governmental funds and in the County Hospital Enterprise Fund. Contra Costa County Emplayees'Retirement Association .:,. The Contra Costa County Employees' Retirement Association(CCCERA) was established to provide retirement benefits to employees of the County and other member agencies. The CCCERA provides a majority of its services for the benefit of the County and, therefore, is reported as a pension trust fund in the basic financial statements. The fiscal year of the CCCERA ends on December 31 st and its «< : financial activities are reported as of that date. In-Home Supportive Services Public Authority The Contra Costa County Board of Supervisors, pursuant to 'Welfare and Institutions Code Section 12301.6, established the In-Horne Supportive Services Public Authority (IHSS). This Authority { provides screening,training and referral of in-home supportive service providers and assists recipients in finding qualified persons to assist eligible individuals who are unable to care for themselves at home. The activities of the IHSS are included in a special revenue fund which is reported as part of the nonmajor governmental funds. Special Districts and Service Areas The County has 41 agencies referred to as County Special Districts and Service Areas. Each is established by the County for the purpose of providing specific services in a defined geographic area. Their board members are the same as the County Board of Supervisors. These agencies and the 30 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Special Revenue Fund in which each is included are: Fire Protection - Bethel Island Fire Protection District, Contra Costa Fire Protection District, Crockett-Carquinez Fire Protection District, East Diablo Fire Protection District, Oakley Fire Protection District; Flood Control - Flood Control District, Storm Drainage District, Storm Drain Maintenance District No. 4 and Storm Drain District No. Z-16; Health and Sanitation - Sanitation Districts Nos. 5 and 6; Service Areas - Service Areas D- 2, EMS-1, L-100, LIB-2, LIB-10, LIB-12, LI13-13, M-1, M-8, M-16, M-17, M-20, M-23, M-25, M- 26, M-27, M-28, M-295 M30, R-4, R-7, R-9, R-10, RD-4 and Discovery Bay West Parking District; Law Enforcement - Service Areas P-1, P-2, P-5 and P-6; Other Special Revenue - Contra Costa County Water Agency. These special revenue funds are reported as nonmajor governmental funds. Discretely Presented Component Unit Children and Families First Commission The Contra Costa Children and Families First Commission (the Commission) was established to implement the provisions of Proposition 10, adopted by the voters in 1998. Proposition 10 added Division 108 (commencing with Section 130100) to the Health and Safety Code. It provides for a State tax on the sale of tobacco products and also provides that this revenue be spent for early childhood development programs by the Commission. The County Board of Supervisors appoints all nine members (and nine alternate members) of the Commission and is able to impose its will on the Commission. Two members of the Board of Supervisors serve on the Commission. The Commission provides most of its services directly to the citizens of the County. The financial activity of the Commission is reported in separate columns on the government-wide financial statements. Complete audited financial statements for each of the individual component units are issued _ separately and may be obtained at the unit's administrative offices as follows: Housing Authority of the County of Contra Costa 3133 Estudillo Street,Martinez,CA 94553 Contra Costa County Public Facilities Corporation 1220 Morello Ave., Suite 100,Martinez,CA 94553 County of Contra Costa Public Financing Authority 651 Pine Street, 6th Floor,Martinez, CA 94553 Contra Costa County Redevelopment Agency 651 Pine Street, 5th Floor North Wing, Martinez,CA 94553 Contra Costa County Employees" Retirement Association 1355 Willow Way, Suite 221,Concord,CA 94520 Contra Costa Children and Families First Commission 1340 Arnold Drive, Suite 125, Martinez,CA 94553 In-Home Supportive Services Public Authority 40 Douglas Drive,Martinez,CA 94553 31 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 B. New Accounting Pronouncements Implemented During the Year New Reporting Model: GASB Statement No. 34 In June 1999, The Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments. GASB Statement No. 34 provides for the most significant change in financial reporting in over twenty years with changes to governmental financial reporting, including changes in the basic financial statements. This new governmental reporting model is effective for the County beginning with fiscal year 2001-2002, the period covered by these statements. GASB Statement No. 34, requires the presentation of government-wide financial statements and fund financial statements. The new government-wide financial statements are prepared using the accrual basis of accounting and the economic resources measurement focus. The government-wide financial statements include the reporting of long-term liabilities and capital assets such as buildings, roads, drainage facilities, and other infrastructure within the governmental and the business-type activities. Depreciation expenses and accumulated depreciation, which were not previously reported for governmental funds, are also displayed on the goverriment-wide financial statements. The capital assets and related depreciation also include the costs and depreciation of infrastructure assets, which were not previously capitalized and depreciated. The fiend financial statements for the governmental funds continue to be prepared under the modified accrual basis of accounting. Fund financial statements are shown separately for specific .major governmental funds,and in total for all other nonmajor governmental funds. Effects of New Pronouncements The following summarizes recent GASB pronouncements and their impact, if any, on the financial statements: GASB Statement No. 34 establishes new financial reporting requirements for all governments, nationwide. The main purpose is to provide more understandable and useful governmental financial reports to a wider range of users and enhance the comparability of financial statements. Under GASB Statement No. 34, the County's basic financial statements present the following components in addition to the fund financial statements and other required supplementary information: • Management's Discussion and Analysis (MD&A) - The MD&A is the new easily readable narrative that introduces the basic financial statements and provides an analytical overview of the County's financial activities. The narrative should include currently known facts, decisions or conditions that are expected to have a significant effect on the financial position or changes in financial position. • Government-wide Financial Statements —These financial statements report the financial position and operating results of the County as an economic entity, excluding the information about 32 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30 2002 fiduciary activities, and are prepared using the economic resources measurement focus and the accrual basis of accounting. The government-wide financial statements include the statement of net assets and the statement of activities. GASB Statement.No. 37 In June 2041, GASB issued Statement No. 37, Basic Financial Statements — and Management's _. Discussion and Analysis —for State and Local Governments: Omnibus — an Amendment of GASB Statements No. 21, Accounting for Escheat Property and No. 34. This statement is effective for the same period as GASB statement No. 34 and either clarifies or modifies certain provision in GASB Statements No. 21 and No. 34. It establishes guidance in the following areas: reporting of escheat property, topics for discussion in the MD&A, program revenue classifications, the minimum level of detail required for business-type activities in the statement of activities, etc. GASB Statement No. 38 In .lune 2001, the GASB issued Statement No. 38, Certain Financial Statement Note Disclosures. This statement modifies, adds and deletes various note disclosure requirements. Those requirements address revenue recognition policies, debt service requirements, receivable and payable balances, interfund transfers and balances,and short-term debt. GASB Interpretation No. 6 In March 2000, the GASB issued Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. This interpretation clarifies the application of standards for modified accrual recognition of certain liabilities and _ expenditures in areas where differences have arisen, or potentially could arise, in interpretation and practice. The County has implemented GASB Statement Nos. 34, 37 and 38 and Interpretation No. b and these statements are presented according to those requirements. A summary of the adjustments required to implement these statements is presented in Note 2. C. Basis of Presentation Government-Wide Financial Statements GASB Statement No. 34 mandates the presentation of two basic government-wide financial statements, the Statement of Net Assets and the Statement of Activities. The statement of net assets and statement of activities display information about the primary government (the County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County and between the County and its discretely presented component unit. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported 33 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 separately from business-type activities, which rely to a significant extent on fees charged to external parties. The statement of net assets reports the County's financial and capital resources, including infrastructure, as well as the County's long-term obligations. The difference between the County's assets and liabilities is its net assets. Net assets represent the resources that the County has available for use in providing services after its debts are settled. The statement of activities presents a comparison between direct expenses and program revenues for each function of the governmental activities and each segment of the business-type activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs, including fines and forfeitures, and 2)grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, management has discretion as to which resources to apply. Generally, restricted resources are depleted before unrestricted. However,when prudent, unrestricted resources may be used first. Fund Financial Statements The fund financial statements provide information about the County's funds, including fiduciary funds and blended component units. Separate statements for each fund category — governmental, proprietary and fiduciary — are presented. The emphasis of fund financial statements is on major governmental and enterprise funds,each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. The County reports the General Fund as a major governmental fund. The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. In addition to general administration, the General Fund includes such activities as public protection, health and sanitation, public assistance, education,and public ways and facilities. The County reports the following major enterprise funds: • The County Hospital (the Hospital) accounts for hospital operations involved in providing health services to County residents. Revenues are principally fees for patient services, payments from Federal and State programs such as Medicare, Medi-Cal and Short-Doyle, realignment revenues and subsidies from the General Fund. + The Health Maintenance Organization accounts for the operations of the County's prepaid health plan. Revenues are primarily capitation payments by Medicare and Medi-Cal, premiums by private citizens and realignment revenues. 34 COUNTY OF CONTRA COS'T'A NOTES TO THE.BASIC FINANCIAL STATEMENTS June 30,2002 The County reports the following additional fund types: - • Internal Service Funds account for the County's self-insurance programs — employee dental insurance, employee medical insurance, long-term disability, workers' compensation, automotive liability insurance, general liability insurance, state unemployment insurance, medical liability insurance and special district property insurance,on a cost-reimbursement basis. • The Pension Trust Fund accumulates contributions from the County, its employees and other participating employers, and earnings from the fund's investments. Disbursements are made from the fund for retirement, disability and death benefits (based on a defined benefit formula) and administrative expenses. This fund includes all assets of the CCCERA. • The Investment Trust Fund accounts for the assets of legally separate entities who make directed investments through the County Treasurer. These entities include school and community college districts, other special districts governed by local boards, regional boards and authorities and pass through funds for tax collections for cities. These funds represent the assets, primarily cash and investments,and the related liability of the County to disburse these monies on demand. • The Private-Purpose Trust Fund accounts for assets held in trust for the City of Oakley related to its redevelopment project area,as well as assets held in trust for others. « The Agency Funds account for assets held by the County as an agent for various local governments. D. Basis of Accounting The government-wide,proprietary fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions,in which the County is giving(or receiving) value without directly receiving(or giving) equal value in exchange, include property and sales taxes, grants,entitlements and donations. On an accrual basis,revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. For its business-type activities and enterprise funds, the County has elected under GASB Statement No. 20,Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements as well as any applicable pronouncements of the Financial Accounting Standards Board, the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes accounting principles generally accepted in the United States of America for governmental units. The 35 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 County has elected not to follow subsequent private-sector guidance of the Financial Accounting Standards Board after November 30, 1989. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings,result from nonexchange transactions or ancillary activities. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes are accrued when their receipt occurs within sixty days after the end of the accounting period, all other revenues, the majority of which are from the state and federal government are accrued when their receipt occurs within one year after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. Debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are generally recorded when payment is due. However, where resources have been provided during the current year for payment of interest due early in the following year, the expenditure and related liability are accrued. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources. E. Noncurrent Governmental Assets/Liabilities GASB Statement No. 34 eliminates the presentation of account groups, and instead incorporates the information into the governmental activities column in the government-wide statement of net assets. F. Cash and Cash Equivalents For purposes of the accompanying statement of cash flows, the enterprise and internal service funds consider all highly liquid investments with a maturity of three months or less when purchased, and their equity in the County Treasurer's investment pool, to be cash equivalents. Also included is restricted cash. The restricted cash has been restricted for repayment of debt or as reseryes. G. Investments Investment transactions are recorded on the trade date. Investments in non-participating interest- earning investment contracts(certificates of deposit and guaranteed investment contracts)are stated at cost, and all other investments are stated at fair value. Fair value is defined as the amount that the County could reasonably expect to receive for an investment in a current sale between a willing buyer and seller and is generally measured by quoted market prices. Under GASB Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and ,'Vote Disclosures for Defined Contribution Plans, the Pension Trust Fund reports its investments at fair value and includes both realized and unrealized gains and losses on investments in its statement of changes in net assets. The fair values of equity and fixed income securities are derived from quoted market prices. The fair values of private market investments are estimated from fair values provided 36 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 by real estate investment funds, generally using periodic independent appraisals, and alternative investment managers. All investment purchases and sales are recorded on the trade date. The public school districts, cemetery districts, pest control districts, recreation and park districts and resource conservation districts within the County are required by legal provisions to maintain their cash and investments with the County Treasurer. The County Treasurer maintains individually directed investment accounts for these districts. The cash and investments held for these districts are included in the Investment Trust Fund. H. Inventories Inventories are valued at cost, which approximates market. Governmental fund inventories are maintained using the weighted average method. Proprietary fund inventories are maintained using the first-in, first-out method. The costs of governmental fund inventories and proprietary fund inventories are recorded as expenditures/expenses at the time individual items are consumed rather than when purchased. Reported inventories of governmental funds are equally offset by a fund balance reservation to indicate that a portion of the fund balance is not available for future appropriation. L Notes Receivable The notes receivable balances in the General Fund consist of loans made with funds provided to the County under the U.S. Department of Housing and Urban Development programs. The loans are made to carry out activities for affordable housing and economic development. Generally, the loans are either deferred or collected on a residual receipts basis with all remaining principal and interest due on the earlier of the due date of the note or sale or transfer of property. Any repayment of principal or interest is treated as program income,the use of which is restricted by federal regulations. As such, these notes receivable are recorded with an offset to deferred revenue in the fund financial statements because the amounts are unavailable. J. Prepaid Pension Asset On March 1, 1994, the CCCERA received a payment of$333,724,040 from the County as proceeds from the issuance of pension obligation bonds. The proceeds were used to reduce the County's Unfunded Actuarial Accrued Liability(URAL)at that time. K. Capital Assets Capital assets(including infrastructure)are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Contributed fixed assets are valued at their estimated fair market value on the date contributed. Capital assets include public domain(infrastructure)consisting of certain improvements including roads, bridges, water/sewer, lighting system, drainage systems, and flood control. The capitalization threshold for infrastructure is $25,000. The capitalization threshold for permanent structures is $5,000. The capitalization threshold for equipment and vehicles was increased from $3,000 to $5,000 effective July 1, 2001. Capital assets used in operations are depreciated or amortized(assets under capital leases)using the straight-line method over the lesser of 37 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 the capital lease period or their estimated useful lives in the activities within the government-wide financial statements,proprietary funds and the pension trust fund. The estimated useful lives are as follows; Infrastructure 25-50 years Buildings 25-40 years Improvements 10-20 years Equipment and vehicles 3-20 years Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities or extend useful lives, are capitalized. Upon sale or retirement of fixed assets,the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. Interest is capitalized on construction in progress in the proprietary funds in accordance with Statement of Financial Accounting Standards No. 62, Capitalization of Interest Cost in Situations Involving Certain Tax Exempt Borrowings and Certain Gifts and Grants. Accordingly, interest capitalized is the total interest cost from the date of the borrowing net of any allowable interest carried on temporary investments of the proceeds of those borrowings until the specified asset is ready for its intended use. L. Bond and Certificate of Participation Discounts, Issuance Costs and Deferred Amounts on Refundings In governmental fund financial statements, bond and certificate of participation discounts, issuance costs and deferred amounts on refundings are recognized in the period incurred. In the government- wide and proprietary fund financial statements, these charges are deferred and amortized over the term of the issuance using the straight-line method,which approximates the effective interest method. M. Property Tax Levy,Collection and Maximum Rates The County is responsible for assessing, collecting and apportioning property taxes. Taxes are levied for each fiscal year on taxable real and personal property situated in the County. The levy is based on the assessed values as of the preceding January 1st,which is also the lien date. State code requires tax rates to be set no later than the first workday in September unless the Board of Supervisors elects to extend the deadline to October P. Property taxes on the secured roll are due in two installments: November I' and February 1St and become delinquent after December 166 and April 10`h, respectively. Supplemental property taxes are levied based on changes in assessed values between the date of real property sales or construction completion and the preceding assessment date. The additional supplemental property taxes are prorated from the first day of the month following the date of such occurrence. Property taxes on the unsecured roll are due on the lien date (January 1St), and become delinquent if unpaid by August 31st. 38 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Supplementary taxes that have been collected but unapportioned at year-end and unsecured taxes collected in advance are reported in unapportioned taxes in the Unapportioned Taxes Agency Fund. Secured property taxes are recorded as revenue in the fiscal year of the levy. The County apportions _ secured property tax revenue in accordance with the alternate method of distribution prescribed by Section 4701 (et al) of the State Revenue and Taxation Code (The Teeter Plan). This alternate method provides for crediting each applicable fund with its total secured taxes upon completion of the _. secured tax roll, approximately October I st of each year. Under the alternate apportionment method, specified amounts of penalties and interest collected on delinquent secured taxes are held in the Tax Losses Reserve Agency Fund (TLRF). This reserve is used to offset the impact of accumulated delinquency remaining at year-end. The County's management believes that any ownership rights to the TLRF the County may have,are effective only upon transfer or to the extent of losses related to the sale of tax defaulted property. The County has the authority to transfer any amounts in the fund that exceed a legally defined threshold, which when calculated was $5,138,000 at June 30, 2002. The year-end balance in the TLRF was $27,095,000. Amounts in the TLRF are considered to be held in a custodial capacity for the participants in the County's Teeter Plan. N. Interfund Transactions Interfund transactions are reflected as either loans, services provided, reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation. 0. Vacation and Sick Leave Under terms of union contracts, County employees are granted vacation and sick leave in varying amounts. In the event of termination, an employee is reimbursed for accumulated vacation hours. Employees are not reimbursed for accumulated sick leave except management employees who are eligible for a payoff of unused sick leave accruals at resignation. Management employees must have a balance of at least 70.0 percent of their sick leave accruals and have been employed three years or more to be eligible for this benefit. The maximum amount payable under this Sick Leave Incentive Plan is 50.0 percent of accrued sick leave,however, the amount of sick leave payable is considered de 39 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS Julie 30,2002 minimis. Accordingly, no accrual for sick leave has been made in the accompanying basic financial statements. Accrued vacation at June 30,2002, is valued at$42,060,040,which includes$34,761,400 attributable to the General and Special Revenue Funds, $7,031,044 recorded in Enterprise Funds and $268,404 recorded in the Pension Trust Fund. Amounts attributable to the General and Special Revenue Funds are expected to be claimed in future periods and paid with future resources. Accordingly, this liability is reflected in the government-wide statement of net assets. In the proprietary funds and the Pension Trust Fund, accumulated vacation is recorded as an expense and liability as the benefits accrue to employees. In compliance with GASB Statement No. 16, Accounting for Compensated Absences, the amounts reported include estimated employer liability for taxes and workers, compensation premiums. P. Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 2. FUND EQUITY A. Restatement of Fund Equity/Net Assets Fund Reclassifications Agency Funds—During the current year,the County evaluated its agency funds and moved funds that did not meet the definition of an agency fund under GASB Statement No. 34 to the General Fund, nonmajor governmental funds, nonmajor enterprise funds and private-purpose trust fund. Previously the County had included the following activities in agency funds: road improvement fee receipts, receipts from the U.S. Department of Housing and Urban Development and receipts from benefit districts. Expendable frust Funds— GASB Statement No. 34 eliminated the use of expendable trust funds to account for assets held by the County in a trustee capacity for other governmental units. Assets held on behalf of the City of Oakley Redevelopment Agency in connection with the Jurisdictional Transfers Agreement have been retroactively reclassified to a private-purpose trust fund. Employee Medical Insurance Internal Service Fund— The County evaluated the Employee Medical Insurance Internal Service Fund and determined that it was no longer going to charge other departments on a cost-reimbursement basis for the administration activities related to its health plan, supplemental life insurance, and state disability insurance and its employees' video display terminal benefits. As a result, the functions related to these activities were reclassified from the Internal Service Fund to the General Fund at the beginning of the year. The remaining functions were terminated during the year. kk� 40 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Other Adjustments Public Financing Authority - The County made an adjustment in the amount of$3,355,000 to the Public Financing Authority's fund balance to adjust for amounts that should have been paid by the Public Facilities Corporation. The County made an adjustment in the amount of $662,000 to the Public Financing Authority's fund balance to adjust for the lease revenue bond cost of issuance to the County Hospital Enterprise Fund. Interjund Advances- The County made an adjustment to the Flood Control nonmajor special revenue fund to adjust a prior year's advance in the amount of$600,000 to reflect receipts on an advance made in a prior fiscal year. In addition, the County made an adjustment of$6,801,000 to nonmajor governmental funds to record previous year's interfund advances within the Flood Control Funds. Enterprise Fund Capital Assets - During the year, the County performed a detailed analysis of the enterprise funds' capital assets and initiated cost adjustments to record the proper book value of its capital assets. Housing Authority Enterprise Fund Adjustments - During the year, the Housing Authority wrote off prior year construction in progress costs totaling $691,000 that were originally associated with the Low Rent Aided Housing Program but did not directly enhance its value. The Housing Authority _. also adjusted beginning deferred revenue balance related to its Community Development Block Grant and Rental Rehabilitation programs ($621,000), recorded a notes payable ($185,000), and adjusted beginning net assets related to the capital grant program($125,000). Other Miscellaneous Adjustments - The County made miscellaneous adjustments to the nonmajor governmental funds to adjust prior year's activity for the Child Development Program ($122,000), revenue accrual adjustments in the Pension Obligation Bond Fund($37,000), the Assessment District Debt Service Fund ($10,000), and the Assessment District Capital Projects Fund ($19,000). The County also made adjustments to the Redevelopment Agency in the amount of $974,000 in the Special Revenue Funds and$122,000 in the Capital Projects Funds for land held for resale. Pension Trust Fund Adjustments Paulson Lawsuit ,Settlement — The Pension Trust Fund's beginning net assets were reduced by $27,600,000 as a result of the Paulson Lawsuit settlement(see Note 16). City of Pittsburg—The beginning net assets were decreased by$810,000 for an amount still owed to _ CaIPERS for membership withdrawal plus the remaining contract balance owed by the City of Pittsburg for prior service, as well as the reduction of the designations for facilities/system enhancements and capital outlay that were used by CCCERA during the initial phase of the office expansion project in 2000. 41 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Summary The impact of the restatements on the fund balances/net assets as previously reported is presented below: Nonmajor Health Nonmajor General Governmental County Maintenance Enterprise Fund Funds Hospital Organization Funds Fund balances/net assets, Jule 30,2001, as previously reported $ 144,607 257,017 23,566 5,286 51,825 Restatements: Fund reclassifications: Agency Funds 6,530 40,274 50 Expendable Tnist Funds Employee Medical Insurance Internal Service Fund 755 Other adjustments: Public Financing Authority 4,017 Interfiind Advance (6,201) Capital Amts 1,854 73 929 Housing Authority (1,622) Miscellaneous 1,00 Pension Trust Fund adjustments: Paulson Lawsuit Settlement City of Pittsburg Total restatements 7,285 39,130 1,854 73 (643) Ful balances/net assets,June 30,2001, as restated $ 151,892 296,147 25,420 5,359 51,182 42 COUNTY OF CONTRA.COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Internal Pension Expendable Private- Service Trust Trust Purpose Funds Fund Funds Trust Fund 2,497 2,931,262 6,962 _. 2,885 (6,962) 6,962 (755) _- (27,600) J810) (755) (28,410) (6,962) 9,847 1,742 2,902,852 9,847 43 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 B. Schedule of Beginning Net Assets for Governmental Activities on the Government-wide Statement of Activities The following is a reconciliation of beginning fund balances,as previously reported for governmental funds to beginning net mets reported for govennnerrtal activities on the statement of activities. Fund balances,beginning of the year,as previously reported $ 401,624 Change in accounting principles and prior period adjustments, as noted 46,415 Internal service funds,as restated 8,574 Capital assets reported in the general fixed assets account group at June 30,2001 $ 586,239 Record infrastructure assets 286,475 Record infrastructure assets-accumulated depreciation (58,638) Record accumulated depredation for structures, improvements and equipment (249,157) Record construction in progress for roads and drainage 18,899 Correct entries made on equipment in prior years 654 584,472 Net pension asset 293,558 Interest payable at June 30,2001 (3,746) Long-term obligations reported in the general long-term debt account group at June 30,2001(Excludes Claims Payable-Reported with Internal Service Funds) (585,095) Revenue earned but not considered available previous to July 1,2001 25,817 Net assets,beginning of year,as reported in the statement of activities $ 771,619 C. Reserve for Prepaid Items and Deposits Reserves are less than total prepaid items and deposits because the General Fund advanced $409,000 to subgrantees who will use the funds for federal programs during fiscal year 2002-2003. As funds are spent,the federal government reimburses the County. 44 - COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 3. STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY Deficit Net Assets The Child Development Special Revenue Fund, which is reported as part of the nonmajor governmental funds, had a fund balance deficit of$79,000 at June 30, 2002. The Child Development Program incurred increased costs while the Program was being reorganized. The activities of the restructured program are projected to restore the Fund's fund balance to a positive balance in fiscal year 2002-2003. Three Internal Service Funds had net assets deficits at June 30, 2002. The Medical Liability Insurance Fund had a deficit of$4,137,000. The County provided $4,000,000 in fiscal year 2002-2003 to reduce the deficit and plans to further evaluate funding options. The Workers' Compensation Insurance Funds, County General and Fire Protection, had deficits of$18,321;000 and$683,000,respectively. The County is currently negotiating with labor representatives to strengthen cost containment for the workers' compensation program and has increased rates to enhance revenues for fiscal years 2002-2003 and 2003- 2004 so as to reverse the negative trend in net assets. The Sheriff Law Enforcement Training Center Enterprise Fund, which is reported as part of the nonmajor enterprise funds, had a deficit of $675,000. The deficit is the result of one-time start-up costs. The Sheriff-Coroner expects to recoup these costs from future training program tuition fees collected. 4. CASH AND INVESTMENTS The cash balances of substantially all funds, except the Pension and Investment Trust Funds, are maintained in the County's internal pool and invested by the County Treasurer. Income from pooled investments is allocated to the funds based on average daily balances. As permitted by the Government Code, legally separate entities that are not part of this reporting entity also have individual investment accounts in the County Treasury. These accounts are separate from the pool and are reported in the Investment Trust Fund. Specific investments are acquired for these individual entities at their direction and the income from and changes in the value of those investments affect only the entity for which they were acquired. The Retirement Board directs the investment activity of the Pension Trust Fund. Cash and investments at June 30, 2002 (December 31, 2001, for the Pension Trust Fund and March 31, 2002, for the Housing Authority),are reported as follows(in thousands); Deposits Investments Total Primary Government $ 12,032 626,662 638,694 Children and Families First Commission 5,381 33,558 38,939 Pension Trust Fund 5,894 2,713,091 2,718,985 Investment Trust Fund 35,253 798,336 833,589 Private-Purpose Trust Fund 6,162 2,986 9,148 Agency Funds 129,591 129,591 Total $ 64,722 4,304,224 4,368,946 45 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS ,Tune 30,2002 A. Deposits Deposits include bank deposits at a carrying amount of$61,803,000. The balance reported by various financial institutions was $75,846,000. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit. Of the bank balance, $1,358,000 was covered by Federal depository insurance and$74,488,000 was collateralized by the pledging financial institutions as required by Section 53652 of the California Government Code. According to Government Code Section 53601, bank obligations such as Certificates of Deposit are considered investments. However, in accordance with generally accepted accounting principles in the United States of America, the County has classified Certificates of Deposit in the amount of $2,919,000 as deposits. Of the Certificates of Deposit balance, $1,308,000 was insured and $1,611,000 was collateralized by the pledging financial institutions as required by Section 53652 of the California Government Code. Under the California Government Code, a financial institution is required to secure deposits in excess of$100,000 made by state or local governmental units by pledging securities held in the form of an undivided collateral pool. The market value of the pledged securities in the collateral pool must equal at least 110.0 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150.0 percent of the secured public deposits. The collateral must be held at the pledging bank's trust department or other bank, acting as the pledging bank's agent, in the public agency's name. B. Investments Statutes authorize the County to invest in obligations of the United States Treasury, federal agencies, municipalities, commercial paper rated A-1 by Standard & Poor's Corporation or P-1 by Moody's Commercial Paper Record, bankers' acceptances, repurchase agreements, reverse repurchase agreements, medium-term notes, negotiable certificates of deposit, mutual funds and investments in accordance with the statutory provisions governing the issuance of bonds. Pension Trust Fund investments are authorized by the County Employees' Retirement Law of 1937. Statutes authorize a "prudent investor" guideline as to the form and types of investments, which may be purchased. The County's investments(including the Investment Trust Fund) and those of the Pension Trust Fund are categorized separately on the following page to indicate the level of custodial credit risk assumed by each investment portfolio for their respective year-ends. Category 1 includes investments that are insured or registered, or securities held by the County or its agent in the County's name. Category 2 includes uninsured and unregistered investments with the securities held by the counterparty's trust department or agent in the County's name or in the agent's nominee name with subsidiary records listing the County as the legal owner. Category 3 includes uninsured and unregistered investments, with the securities held by the counterparty or by its trust department or agent but not in the County's 46 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 name. Investments not evidenced by securities that exist in physical or book form cannot be categorized. The Local Investment Advisory Board (Board) has oversight responsibility for the State Treasurer's Local Agency Investment Fund (LAIF). The Board consists of five members as designated by State Statute. The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, which is different from the fair value of the County's position in the pool. Information is not available on if the mutual funds in which the County has invested, had used, held or wrote derivative products during the year ended June 30,2002. Investments at fair value as of June 30, 2002 (December 31, 2001, for the Pension Trust Fund and March 31, 2002,for the Housing Authority), are shown as follows(in thousands): Category ry 1 2 Total County(Including Investment Trust Fund) Negotiable certificates of deposit $ 50,000 4,000 54,000 U.S. government securities 195,849 24,176 220,025 Commercial paper 142,527 19,349 161,876 Medium-term bonds 11,050 29,467 40,517 Local obligation bonds 2,144 2,144 Bankers'acceptances 10,343 10,343 Repurchase agreements 329,372 329,372 Total categorized investments $ 411,913 406,364 818,277 _ Uncategorilzed Investments: State Treasurer's investment pool 547,504 Guaranteed investment contracts 110,252 Mutual funds 81,542 Total investments 1,557,575 Pension Trust Fund: Domestic stocks $ 795,786 795,786 International stocks 44,413 44,413 Corporate&government bonds 588,847 588,847 International bonds 79,707 79,707 Repurchase agreements 13,734 13,734 Total categorized investments $ 1,508,753 13,734 11522,487 Uncategorized Investments: Mutual funds 872,521 Real estate 267,431 _ Alternative investments 50,652 Total investments 2,713,091 Children and Families First Commission U.S.government securities 33,558 33,558 Total Investments $ 4,304,224 47 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 C. Other Financial Instruments In accordance with California statutes, the County may invest in a wide variety of investment instruments, including asset-backed securities, such as. collateralized mortgage obligations and principal-only strips and forward contracts, The Treasurer holds principal-only strip instruments for the benefit of some County school districts. Those school districts utilize the services of an independent financial advisor in determining their investment strategy. The CCCERA has investments with trustees who hold part of their portfolio in government and corporate obligations consisting of asset-backed securities, floating rate notes,constant maturity index Adjustable Rate Mortgages (ARMs), Collateralized Mortgage Obligations and LIBOR indexed ARMs. As of June 30, 2002, the County's proportionate share of structured notes and asset-backed securities held by LAW was$16,896,000 or 3.085 percent of the County's investment in LAIF. Information is not available on if the various mutual funds in which the County and CCCERA have invested, had used,held or wrote derivative financial products during the year. The investments discussed above, which are included in the accompanying financial statements, represent 10.0 percent of total investments. The Treasurer's investment policy was approved by the Board of Supervisors. In accordance with Government Code Sections 27130-27137, an investment oversight committee reviews the quarterly investment reports prepared by the Treasurer. D. Securities Lending by the Employees' Retirement Association(Pension Trust Fund) The CCCERA's investment policy permits the use of a securities lending program with its principal custodian bank. The CCCERA tends domestic and international bonds and equities to various brokers for collateral that will be returned for the same securities plus a fee in the future. The custodian bank provides loss indemnification to the CCCERA if the borrower fails to return the securities. The custodian bank manages the securities lending program and receives cash and securities as collateral. The collateral cash cannot be invested and the collateral securities cannot be pledged or sold by the CCCERA without borrower default. Securities on loan must be collateralized at 102.0 percent and 105.0 percent of the fair value of domestic securities and non-domestic securities, respectively. There are no restrictions on the amount of securities, which can be loaned at one time. The term to maturity of the security loans is generally matched with the term to maturity of the securities collateral. Such matching existed at December 31, 2001. There were no losses associated with securities lending transactions during the year. At December 31, 2001,CCCERA has no credit risk exposure to borrowers. The fair value of investments on loan at December 31, 2001, is $115,197,000,which was collateralized by cash and securities in the amount of$117,874,000. 48 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 5. RECEIVABLES Receivables at year-end of the County's major individual funds and nonmajor and internal service funds in the aggregate, including the applicable allowances for uncollectible accounts are as follows (in thousands): Internal Total Receivables- General Nonmajor Service Governmental Governmental Activities Fund Funds Funds Activities Taxes $ 9,489 1,479 10,968 _. Accounts 125,907 10,177 1,815 137,899 Advances 89 89 Grass Receivables 135,485 11,656 1,815 148,956 Less: Allowance for uncollectibles (4) (4) Total Receivables(net) $ 135,481 11,656 1,815 148,952 Health Total Receivables- Maintenance Nonmajor Business-type Business-type Activities. Hospital Organization Funds Activities Accounts S 178,565 901 3,172 182,638 Less: Allowance for uncollectibles (137,3221 (137,322) _ Total Receivables(net) S 41,243 901 3,172 45,316 Governmental funds report deferred revenues in connection with receivables for revenues not considered available to liquidate liabilities of the current period. Governmental and enterprise funds also defer revenue recognition in connection with resources that have been received,but not yet earned. 49 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS Jane 30,2002 At June 30, 2002, the various components of deferred revenue and unearned revenue reported were as follows(in thousands): Unavailable Unearned Governmental Activities:" General Fund: Notes receivable $ 29,246 Advances not yet earned 14,134 Other receivables and advances 835 Resources received that do not yet meet the criteria for revenue recognition 3,589 Nonmajor Funds: Notes receivable(Redevelopment Agency) 1,740 Notes receivable 5,539 Other advances 49 Resources that do not yet meet the criteria for revenue recognition 1,937 17,723 Total Governmental Activities $ 38,462 36,330 Business-type Activities: County Hospital Enterprise Fund: Resources received that do not yet meet the criteria for revenue recognition $ 29,352 Nonunjor Enterprise Funds: Resources received that do not yet rreet the criteria for revenue recognition 7,706 Total Business-type Activities $ 37,058 50 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL,STATEMENTS June 30,2002 6. INTERFUND TRANSACTIONS Interfund Receivables/Payables The composition of interfund balances as of June 30, 2002, are as follows(in thousands): Due TaTrom Other Funds: Receivable Fund Payable Fund Amount Geral Fund Nonmajor Governmental Funds $ 30,633 County Hospital Enterprise 15,737 Health Maintenance Organization Enterprise 200 Nonrnajor Enterprise Funds 1,171 Internal Service Funds 995 Agency Funds 16,465 Investment Trust Fund 1,107 Private-Purpose Trust Fund 3 66,311 Nonnrajor Governmental Funds General Fund 7,981 Nonmajor Governmental Funds 2'083 County Hospital Enterprise 531 Health Maintenance Organization Enterprise 24 Nonmajor Enterprise Funds 7 Internal Service Funds 116 Agency Funds 970 Investment Trust Fund 363 12,075 County Hospital Enterprise General Fund 4,807 Nonrrxa or Governmental Funds 659 Health Maintenance Organization Enterprise 5,410 Nonrrrajor Enterprise Funds 116 Internal Service Funds 122 Agcy Funds 17 11,131 Health Maintenance Organization Enterprise General Fund 39 Nonmajor Governrrrental Funds I County Hospital Enterprise 3,735 Nonmajor Enterprise Funds 4 Internal Service Funds 5 Agency Funds 32 _. 3,816 Nomnajor Enterprise Funds General Fund I Nonmajor Enterprise Funds 94 Agency Funds 2 97 Internal Service Funds General Fund 1,267 Nonmajor Governmental Funds 553 1,820 51 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Investment Trust Fund General Fund $ 6 Nonmajor Govenunental Funds 37 Agcy Funk 1,296 1,339 Private-Purpose Trust Fund General Fund 3 Agency Funds 2 5 Agency Funds Agency Funds 6,559 General Fund 2.234 Nonmajor Governmental Funds 509 County Hospital Enterprise 379 Health Maintenance Organization Enterprise 56 Nonmajor Enterprise Funds 1 Internal Service Funds 37 Investment Trust Fund 22 J797 Pension Trust Fund* General Fund 1,884 _.. 1,884 Subtotal 108,275 *Adjustment to General Fund needed due to Pension Trust Fund being reported as of December 31,2001 260 Total S 108,535 Advances To/From Other Funds Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds $ 138 Nonmajor Governmental Funds Nonmajor Governmental Funds 4,883 Total 5,021 The interfund balances resulted from the time lag between the dates that: (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, (3) payments between funds are made and (4) interfund loans. Interfund balances in the agency funds result from interfund borrowings. 52 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Transfers Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various County operations and re-allocations of special revenues. The following schedule briefly summarizes the County's transfer activity(in thousands): A. Between Governmental and Business-type Activities: Transfer From Transfer To Amount Purpose General Fund County Hospital Enterprise $ 31,401 Provide subsidy to cover portion of Hospital's operation. General Fund Health Maintenance 4,811 Provide subsidy to cover portion of HMO's Organization Enterprise operation. General Fund Internal Service Funds 3,000 Transfer funds from the General Fund to the Medical Liability Internal Service Fund. County Hospital Enterprise* General Fund 22,383 Transfer funds to reimburse the General Fund for intergovernmental transfer (IGT) payments, including a $702,000 prior year expenditure accrual. County Hospital Enterprise Nonmajor Governmental 6,042 Transfer a portion of the Salaries and Fund Benefits Expense to Pension Obligation Bond. Health Maintenance Nonmajor Governmental 240 Transfer a portion of the Salaries and Organization Enterprise Fund Benefits Expense to Pension Obligation Bond. County Hospital Enterprise Nonmajor Governmental 443 Transfer of funds to cover the County Fund Hospital and Health Maintenance Organization's pro rata share of certain project lease payments. Health Maintenance Nonmajor Governmental 196 Transfer of funds to cover the County Organization Enterprise Fund Hospital and Health Maintenance Organization's pro rata share of certain project lease payments. Nonmajor Governmental County Hospital Enterprise 1,225 Transfer interest earnings from the PFA to Funds subsidize the Los Medanos project. Nonmajor Enterprise Nonmajor Governmental 70 Transfer a portion of the Salaries and Funds Funds Benefits Expense to Pension Obligation _. Fund. $ 69,811 * The County's required transfer payment to the State Disproportionate Share and Emergency Services Fund was $24,064,000 and was recorded in the General Fund as a health expenditure. The revenue is recorded in the Hospital Enterprise Fund as patient service revenue. Reimbursement to the General Fund is recorded as an operating transfer from the Hospital to the General Fund. 53 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30.2002 B. Between Funds within the Government or Business-type Activitiest'�: Transfer From Transfer To Amount Purpose General Fund Nonmajor Governmental $ 1,300 Transfer funds to library to pay operating Funds expenses. Nonmajor Governmental 34 Provide a one-time appropriation to the Library Funds from District IV. Nonmajor Governmental 324 Transfer property tax. Funds Nonmajor Governmental 500 Transfer greater than expected state mandated Funds cost reimbursements for automated systems development. Nonmajor Governmental l I Transfer funds to pay for capital outlay. Funds Nonmajor Governmental 60 Provide an annual subsidy to cover operating Funds expenses of the Automated Wan-ant ID program. Nonmajor Governmental 24,352 Transfer a portion of the Salaries and Benefits Funds Expenses to Pension Obligation Bond. Nonmajor Governmental 143 Transfer funds for Sheriffs Patrol usage of Funds helicopter and communication services. Nonmajor Governmental 10,406 Transfer of funds to cover the General Fund's Funds pro rata share of certain project costs. Nonmajor Governmental General Fund 1,000 Transfer funds to pay for capital outlay. Funds General Fund 125 Transfer funds for mental health services performed. General Fund 60 To transfer contract housing fees from Land Development to Housing Rehab. Nonmajor Governmental 101 Transfer National Pollutant Discharge Funds Elimination funds to the Road Fund. Nonmajor Governmental 60 Transfer funds from permanent fund to Library. Funds Nonmajor Governmental 206 Transfer funds to pay for capital outlay. Funds Nonmgjor Governmental 3,032 Transfer funds to cover debt service payments. Funds to These transfers were eliminated in the consolidation,by column,for the Governmental and Business-type activities. 54 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2032 Transfer From Transfer To Amount Purpose Nonmajor Governmental Nonmajor Governmental 1,122 Transfer a portion of the Salaries and Benefits Funds Funds Expense to Pension Obligation Bond. Nonmajor Governmental 15 Transfer available funds from a Service Area Funds Special Revenue Fund to the Assessment District Special Revenue Fund. Total $ 42,856 The County pays a subsidy to the County Hospital and Health Maintenance Organization Enterprise Funds to provide resources for operating costs which are in excess of operating revenues. Subsidies for the past three years are as follows(in thousands): Year Ended June 30, Total Subsidy 2000 $ 17,856 2001 29,963 2002 36,212 Certain health and welfare realignment revenues,previously recorded in the General Fund and transferred via subsidy to the Hospital and the Health Maintenance Organization,are now recorded directly to those funds as intergovernmental revenue. In fiscal year 2001-2002,these intergovernmental revenues were$18,879,000 for the Hospital and$2,757,000 for the Health Maintenance Organization. 55 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 7. CAPITAL ASSETS Capital asset activity for the year ended June 30, 2002 (March 31, 2002, for the Housing Authority), was as follows(in thousands): Balance July 1,2001 Transfers& Balance (as restated) Additions Retirements Adjustments June 30,2002 Govermnental Activities: Capital assets, not being depreciated: Land and easements $ 59,997 117 (6) 60,108 Construction in progress 22,810 3D,692 53,502 Total capital assets,not being depreciated 82,807 30,809 (6) 113,610 Capital assets, being depreciated. Infiastructure 286,475 17,619 304,094 Structures and improvements 420,496 25,327 (84) 445,739 Equipment* 102,489 14,922 14 696 102,715 Total capital assets,being depreciated 809,460 57,868 I4,780 852,548 Less accumulated depreciation for: lnfrastructilre (58,638) (6,235) (64,873) Structures and improvements (187,952) (19,097) 82 (206,967) Equ pt* (61,205) (10,082) 10,951 (60,336) Total accumulated depreciation (307,795) 35 414 1110-33 (332,176) Total capital assets,being depreciated,net 501,665 22,454 (3,747) 520,372 Governmental activities capital assets,net $ 584,472 53,263 3,753 633,982 �— 56 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2042 Balance July 1,2001 Transfers& Balance as restatedl Additions Retirements Adjustments June 30,2002 Business-type Activities: Capital assets, not being depreciates: Land $ 10,464 10,464 Construction in progress 25,051 141267 (2,779) 36,539 Total capital assets,not being depreciated 35,515 14,267 {2,779) 47,003 Capital assets, being depreciated. Structures and improvements 226,882 389 2,000 229,271 _. Equipment* 37,300 _ 1,491 (8,981) 779 30,589 Total capital assets,being depreciated 264,182 118-8-01 (8,981) 2,779 259,860 Less accumulated depreciation for: Structures and improvements (90,076) (8,631) (98,707) Equipment* (18,505} (2,752) 41635 (16,622) Total accumulated depreciation (108,581) 11,383 4,635 (115,329) Total capital assets,being depreciated,net 155,601 _ (9,503) X4,346) 2,779 144,531 Business-type activities capital assets,net $ 191,116 4,764 (4,346) 191,534 -- -,---,� =mom * As indicated in Note 1.K, the County increased the capitalization threshold for equipment from $3,040 to $5,000. Consequently,the equipment costing less than$5,000 was removed from the accounts. The book value of the equipment removed from the general fixed assets was $1,430,004. The book value of the equipment removed from the County Hospital Enterprise Fund was $644,000, the Health Maintenance Organization Enterprise Fund was$6,000 and nonmajor enterprise funds were $5,000. At July 1, 2001 the County made the following restatements to capital assets(in thousands): Business-We activities crtpital assets as reported in the prior year: $ 185,993 Reclassify costs identified in the structures and improvements to construction in progress 431 Record cost adjustments for structures and improvements and equipment 1,042 Record adjustments to accumulated depreciation for structures and improvements and equipment 3,650 Business-type activities capital assets as restated-July 1,2001 $ 191,116 The Pension Trust Fund had net capital assets of$574,000. This consisted of leasehold improvements and office equipment. 57 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Depreciation Depreciation expense was charged to governmental functions as follows(in thousands): General government $ 20,767 Public protection 8,714 Health and sanitation 229 Public assistance 689 Education 369 Public ways and facilities 4,428 Recreation and culture 218 Total depreciation expense-governmental functions $ 35,414 Depreciation expense was charged to the business-type functions as follows(in thousands): County Hospital $ 6,530 Health Maintenance Organization 14 Nonmajor enterprise funds 4,839 Total depreciation expense-business-type functions $ 11,383 8. SHORT-TERM NOTES PAYABLE On June 30, 2002, the County had tax and revenue anticipation notes outstanding in the amount of $70,000,000 with interest at 3.0 percent per annum. The notes were issued September 6, 2001, and will be redeemed October 4,2002. Interest is payable on September 5, 2002,and at maturity. The redemption monies were from taxes and other revenues transferred to a Oscal agent during the fiscal year. Total interest incurred on these notes during fiscal year 2001-2002 was $1,717,000. These notes were issued to finance seasonal cash flow requirements for fiscal year ended June 30, 2002. As of July 1, 2001, the County had tax and revenue anticipation notes outstanding in the amount of $55,000,000. This amount was repaid on October 1,2001. 58 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 9. PAYABLES Accounts payable and accrued liabilities at year-end were as follows(in thousands): Total General Nonmajor Governmental Governmental Activities: Fund Funds Activities Accounts $ 17,621 6,297 23,918 Accrued payroll 38,646 6,253 _ 44,899 Total Accounts payable and accrued liabilities $ 56,267 12,550 68,817 Health Total Maintenance Nonmajor Business-type Business-type Activities: Hospital _Organization Funds Activities Accounts $ 14,702 14,810 2,324 31,836 Accrued payroll 11,094 496 117 11,707 Total Accounts payable and accrued liabilities $ 25,796 15,306 2,441 43,543 59 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 10. LEASES A. Operating Leases ........ Total rental expense for the year ended June 30, 2002 (March 31, 2002, for the Housing Authority), for all operating leases and month-to-month lease arrangements amounted to $9,192,000 for the General Fund, $294,000 for the nonmajor governmental funds, $2,563,000 for the Hospital Enterprise Fund, $35,000 for the HMO Enterprise Fund, $134,000 for nonmajor enterprise funds and $258,000 for the Pension Trust Fund. At June 30, 2002 (March 31, 2002, for the Housing Authority), the future minimum rental payments required under non-cancelable operating leases for buildings and equipment, other than month-to- month lease arrangements, are as follows(in thousands): Governmental Activities Business-type Activates Nonmajor Hospital Nonmajor Fiscal Year General Governmental Enterprise Enterprise Ending June 30, Fund Funds Fund Funds* Total 2003 $ 5,878 61 173 4 6,116 2004 5,172 15 111 4 5,302 2005 3,899 4 100 4 4,007 2006 3,094 5 100 3,199 2007 2,365 5 100 2,470 2008-2012 9,835 16 500 10,351 2013-2017 2,555 500 3,055 $ 32,798 106 1,584 12 34,500 *Includes only Housing Authority amounts. B. Capital Leases The County has capital lease purchase agreements for various County buildings and improvements and equipment. The assets acquired under these lease purchase agreements are included in the County's capital assets. The costs of these assets were $16,858,000 for buildings and improvements and $8,413,000 for equipment. The obligations related to these lease purchase agreements are also included in the County's long-term obligations,Note 11. New capital lease obligations for the fiscal year ended June 30, 2002 were $9,907,000. Of this amount, $7,415,000 was used to obtain various assets during the fiscal year. Remaining unspent proceeds will be used in subsequent years. 60 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 11. LONG-TERM OBLIGATIONS The fallowing is a summary of long-term liabilities transactions for the year ended June 30, 2002, (in thousands): - Balance Balance Amounts July 1, June 30, Due Within 2001 Additions Retirements 2002 One Year Govemniental activities - Compensated absences $ 31,160 3,601 34,761 3,476 Claim payable 71,438 57,912 (41,922) 87,428 17,817 Capital lease obligations 8,988 9,907 (2,657) 16,238 3,211 Certificates of participation 61,465 (2,800) 58,665 2,740 Pension bonds payable 297,340 (15,915) 281,425 16,915 Notes payable 6 (6) - - Other bonds payable 8,505 (450) 8,055 915 Lease revenue bands 102,245 12,650 (3,475) 111,420 3,855 Tax allocation bonds 55,360 (835) 54,525 945 - Special assessmed debt 20,276 (1,,6 7j 18,589 1,367 Total govemniental activities - _ - long-term obligations $ 656,783 84,070 J69.M 671,106 51,241 Business-type activities - Compensated absences $ 6,522 509 7,031 703 Medical liability claims payable 8,583 (172) (784) 7,627 1,262 Capital lease obligations 2,748 (602) 2,146 600 Certificates of participation 135,940 (3,390) 132,550 3,570 Notes payable 1,044 (60) 984 65 Lease revenue bonds 32,010 (259 31,760 710 Total business-type activities -long-term obligations-grass 186,847 337 (5,086) 182,098 6,910 ._ Capitalized prenvutm,discounts and deferred amounts on refundings1( 5,012) 734114,278)8 _ 703)3 Total busies type activities _. -long-term obligations-net $ 171,835 337 4,352) 167,820 6,207 61 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Individual issues of bonds, notes and certificates of participation outstanding at June 30, 2402 are as follows(in thousands): Annual Original Outstanding Interest Principal Issue at June 30, Type of indebtedness(purpose) Rates Installrnerits Amount 2002 Governmental activities Pension obligation bonds(4): 2014 5.55-6.80% $ 15,915-33,280 $ 313,640 $ 281,425 Certificates of participation{1): 1992 Consolidated capital projects 2019 5.50-9.50 1,555-1,625 37,300 25,870 1997 Capital projects 2021 3.55-5.10 655-2,610 34,910 32,795 58,665 Lease revenue bonds(1): 1998 Lease revenue 2025 3.80-5.15 525-1,745 24,695 23,385 1999 Lease revenue 2028 4.00.5.25 1,095-3,350 66,560 58,120 2001A Lease revenue 2026 3.15-4.15 335-900 13,905 13,570 2001B Lease revenue 2017 4.25-5.20 80-250 3,695 3,695 2002 Lease revenue 2027 2.75-5.00 155-760 12,650 12,650 111,420 Tax allocation bonds(3): 1992 Tax allocation band 2024 5.25-7.00 155-645 29,315 7,425 1995A Tax allocation bond 2026 3.90-7.00 25-115 1,645 1,505 1995B Tax allocation bond 2026 4.25-6.90 45-200 2,735 2,525 1999 Tax allocation bond 2029 4.00-5.125 475-3,250 44,615 43,070 54,525 Special assessment debt with government coffmitnvrit(5): Kensington 91-1 2013 5.25-6.00 150-300 4,684 2,380 Pleasant Hill 87-1 2005 6.80-7.30 620-770 8,785 2,155 Pleasant Hill BART 93-5 2015 5.44--6.93 55-140 1,530 1,195 San Ramon 89-1 2005 7.55-7.85 75-90 980 265 Wayside Plaza 91-2 2007 7.00.7.20 135-190 2,010 770 Pleasant 1+11 BART CFD 92-1 2016 8.00 7-14 171 144 Pleasant Hili BART CFD 98-1 2017 4.20-5.10 135-3,075 4,785 4,475 Norris Canyon 2001-1 2032 4.10-6.10 110-495 7,220 7,205 18,589 Other bonds payable(2): Recreation and park 2005 4.25-5.10 445-510 4,485 1,465 Storm drainage 2005 4.25 5 200 15 CCC PFA revenue bonds 2001 2017 4.00-5.69 360-570 6,575 6,575 8,055 Total Govenunental activities $ 532,679 62 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Annual Original Outstanding Interest Principal Issue at June 30, Type ofindebtedness(purpose) Maturity Rates InstailmenLs Amount 2002 &usiss-type activities, Notes payable(6): State Deist.of Transportation 2011 6.06% 33-53 $ 558 $ 393 State Dept.of Transportation 2016 5.08 13-25 300 251 State Dept.of Transportation 2010 5.48 13-23 200 155 _ Promissory Note 2059 7.52 185 185 984 Lease revenue bonds(1): _ Hospital Enterprise _. 1999 Los Medanos 2028 3.00-5.25 150-505 8,125 7,655 2001A Los Medanos 2026 3.15-4.15 10-265 4,125 4,025 2001B CC Regional Medical Center 2027 4.25-5.20 445-1,365 20,080 20,080 31,760 _ Certificates of participation,net(1): 1997 Certificates ofparticipaton 2023 3.75-6.00 3,390-10,185 145,340 132,550 Total lusin+ess-type activities $ 165,294 NOTES: (1) Debt service payments are made from lease payments by the County General, Special Revenue and Hospital Enterprise Funds to the PFC and the PFA. (2) Debt service payments are made from restricted property taxes and other revenues recorded in the General and Debt Service Funds. (3) Debt service payments are made from tax increment financing. (4) Debt service payments are made from all County revenues. (5) Debt service payments are made from special assessments levies on properties in each assessment district. The County administers the assessment and repayment of these bonds. Since early redemption is allowed, there may be differences between the earnings on money received from property owners wishing to pay off their debt early and the interest obligation that accumulates on their debt between the time they submit funds to the County and the next available redemption date, as stated in the bonds' official statements. The County has historically funded this difference and to that extent may be obligated in some manner for this debt. (6) Debt service payments are made from operating revenues. There are a number of limitations and restrictions contained in the various bond indentures. County management believes that the County is in compliance with all significant limitations and restrictions. 63 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Following is a schedule of debt payment requirements to maturity for governmental activities for long- term obligations, excluding compensated absences and claims payable that have indefinite maturities, outstanding at June 30, 2002 (in thousands): Fiscal Year Ending Capital Lease Obligations Certificates of Participation Pension Bores Paay We _...._. June 30, Principal Interest Principal Interest Principal Interest 2003 $ 3,211 790 2,740 3,080 16,915 18,351 2004 2,290 646 2,890 2,943 18,000 17,269 2005 1,575 540 3,040 2,797 14,485 16,099 2006 1,037 473 3,215 2,643 17,730 15,150 2007 1,072 415 3,390 2,479 21,295 13,971 2008-2012 4,859 1,178 14,685 9,852 128,400 46,375 2013-2017 1,342 403 15,900 6,081 64,600 6,118 2018-2022 852 77 12,805 1,569_ Total $ 16,238 4,522 58,665 31,444 281,425 133,333 Fiscal Year Emling Other Bonds Payable Lease Revenue Bonds June 30, Principal Interest Principal Interest 2003 $ 915 372 3,855 5,230 2004 1,010 329 4,180 5,078 2005 1,015 282 4,350 4,915 2006 530 247 4,515 4,744 2007 570 222 4,705 4,564 2008-2012 1,905 820 22,325 19,888 2013-2017 2,110 297 24,700 14,237 2018-2022 19,920 8,728 2023-2027 21,005 3,260 2028-2032 1"865 93 Total $ 8,055 2,569 111,420 70,737 Fiscal Year Ending Tax Allocation Bonds Special Assessment Bonds June 30, Principal Interest opal Interest .» 2003 $ 945 2,964 1,367 1,082 7004 995 2,917 1,568 984 2005 1,040 2,868 1,648 877 2006 1,075 2,815 793 797 2007 1,135 2,760 824 748 2008-2012 6,650 12,805 2,562 3,215 2013-2017 8,720 10,679 4,752 2,492 2018-2022 11,520 7,801 1,225 1,357 2023-2027 15,170 4,041 1,650 929 2028-2032 7,275 388 2,_200 351 Total $ 54,525 50,038 18,589 12,832 64 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 As of June 30, 2002, annual debt service requirements of business-type activities to maturity except for medical liability claims payable are as follows(in thousands): _. Fiscal Year Hospital Ending Capital Lease Oblipfions, Certificate ofParti cipation Notes Payable June 30, Principal hiterest Principal interest Principal Interest 2003 $ 600 123 3,570 7,097 65 58 2004 730 89 3,730 6,119 69 55 2005 816 47 3,925 6,718 75 50 2006 4,130 6,506 79 46 2007 4,350 6,268 84 41 2008-2012 25,715 28,129 363 139 2013-2017 33,435 19,403 64 76 2018-2022 43,510 9,033 70 2023-2027 10,185 280 70 2028-2032 70 2033-2037 70 _ 2038-2042 70 2043-2047 70 2048-2052 70 . 2053-2057 70 2058-2060 �. ._.-� 185 26 Total $ 2,146 259 132,550 90,353 _984 Fiscal Year Ending Lease Revenue Bonds _. June 30, Principal interest 2003 $ 710 1,543 2004 730 1,514 2005 760 1,484 2006 795 1,453 2007 825 1,420 2008-2012 4,680 6,546 2013-2017 5,890 5,337 2018-2022 7,510 3,716 2023-2027 9,355 1,592 2028 505 25 Total $ 31,760 24,630 Issuance of New Debt _ Public Financing Authority In June 2002, the County of Contra Costa Public Financing Authority issued $12,650,000 in lease revenue bonds (2002 Series A), with interest rates ranging from 2.75 to 5.00 percent. The costs of _ issuance amounted to $1412,000. The proceeds will be used to finance various capital projects of Contra Costa County, purchase a reserve fund surety bond, and pay costs of issuance relating to the 2002 Series A bonds. 65 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 Defeased Obligations In prior years, the County has defeased certain obligations by placing a portion of the proceeds of new debt issuances in irrevocable trusts to provide for all future debt service payments on the refunded obligations. Accordingly, the trust account assets and the liability of the defeased debt are not included on the financial statements of the County. On June 30, 2002, $156,014,000 in outstanding obligations is considered to be defeased. Legal Debt Limit As of June 30, 2002, the County's debt limit (5 percent of valuation subject to taxation) was $4.674 billion. The total amount of debt applicable to the debt limit was $336 million, net of assets in the debt service funds and other deductions allowed by law. The resulting legal debt margin was$4.338 billion. Arbitrage The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax- exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service(IRS) at least every five years. The County engages consultants to perform calculations of excess investment earnings on tax-exempt bonds and as of June 30,2002, does not expect to incur a liability. 12. CONDUIT DEBT From time to time Multifamily/Single Family Housing Revenue Bonds have been issued in the County's name to provide mortgage loans secured by first trust deeds on newly constructed and existing housing and to provide funds to builders for construction/remodeling of housing projects. The bonds do not constitute an indebtedness of the County. They are payable solely from payments made on and secured by a pledge of the acquired mortgage loans or housing units and certain funds and other monies held for the benefit of the bondholders pursuant to the bond indentures. The County is not obligated in any manner for repayment of the indebtedness. Accordingly, no liability has been recorded in the basic financial statements. As of June 30, 2002, the County had participated in the issuance of twenty-nine series of Multifamily or Single Family Housing Revenue Bonds. The aggregate principal amount remaining payable for the bonds issued was$315,966,000. Not included in the above amount is a defeased issue of$43,115,000. 66 COUNTY OF CONTRA COSTA NOTES TO THE BASF FINANCIAL STATEMENTS June 30,2002 13. NET ASSETS/FUND BALANCES The government-wide financial statements and proprietary and fiduciary fund financial statements utilize a net assets presentation. Net assets are categorized as invested capital assets (net of related debt), restricted and unrestricted. • Invested in capital assets, net of related debt - This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. • Restricted net assets — This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. • Unrestricted net assets — This category represents net assets of the County, not restricted for any project or other purpose. _ In the governmental fund financial statements, reserves segregate portions of fund balance that are either not available or have been earmarked for specific purposes. The various reserves are established by actions of the Board and management and can be increased,reduced or eliminated by similar actions. As of June 30,2002,reservations of fund balance are described below: • Encumbrances—to reflect the outstanding contractual obligations for which goods and services have not been received. • Inventories—to reflect the portion of assets which do not represent available spendable resources. • Advances to other funds — to reflect the amount due from other funds that are long-term in nature. Such amounts do not represent available spendable resources. • Prepaid items and deposits — to reflect amounts paid in advance by the County for goods not yet _ received or services not yet performed. • Land held for resale — to reflect investment in land which does not represent available spendable resources. • Housing Projects - to account for financial resources designated for increasing and improving the supply of housing for persons and families of low or moderate income. + Debt service — to reflect the funds held by trustees or fiscal agents for future payment of bond principal and interest or as reserves, These funds are not available for general operations. • Nonexpendable Permanent Funds—to reflect the fund's principal balance which is not expendable. 67 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 14. PERMANENT FUND The Permanent Fund accounts for the financial activities and balances of donor-restricted endowments for the County's libraries. Interest income may be used for the establishment and furnishing of children's areas within libraries, literacy programs and the acquisition of books that meet the criteria of the endowments. In accordance with the terms of the endowments and California Government Code Section 25355, only the interest income may be used; any unused income may be used in a subsequent year. The amount available for spending, $353,000 at June 30, 2002, is shown on the Statement of Net Assets as Net Assets Restricted for Permanent Fund-Expendable. 15. EMPLOYEES' RETIREMENT PLAN A. Plan Description The Contra Costa County Employees' Retirement Association (CCCERA) is a cost-sharing multiple- employer defined benefit pension plan (the plan) governed by the County Employees' Retirement Law of 1937 (the 1937 Act). The plan covers substantially all of the employees of the County, its special districts, the Housing Authority and thirteen other member agencies. The plan issues stand- alone financial statements which can be directly obtained from its office,as indicated in Note I.A. The plan provides for retirement, disability, death and survivor benefits, in accordance with the 1937 Act. Annual cost-of-living adjustments to retirement benefits can be granted by the Retirement Board as provided by State statutes. The plan is divided into four separate benefit sections of the 1937 Act. These sections are known as: General - Tier I, General - Tier 11, General - Tier III and Safety. Tier I includes members not mandated to be in Tier Ii and reciprocal members that elect Tier I membership. Tier I1 includes members hired on or after August 1, 1980, by the three employers adopting this benefit provision and their members who elected to transfer from Tier I at that date. Tier III was approved by the Board of Supervisors in January 1998, and implementation began in October 1998. Safety includes members in active law enforcement, active fire suppression work or certain other "Safety" classifications as designated by the Retirement Board. Service retirement benefits are based on age, length of service and final average salary. For the Tiers 1, III and Safety sections, the retirement benefit is based on a one-year average salary, in accordance with Section 31462 of the Government Code. For Tier II, the benefit is based on a three-year average salary. As of June 30,2002,3,733 Tier II employees with five years service were eligible to irrevocably elect Tier 111. Members eligible for Tier III are required to elect or decline enrollment. As of June 30, 2002, 3,015 employees elected Tier III. Subsequent enrollments will occur as more employees from Tier II acquire five years of service. 68 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 B. Funding Policy Pursuant to provisions of the 1937 Act, the Retirement Board recommends the annual contribution rates for adoption by the Board of Supervisors. New contribution rates, based on the actuarial study as of December 31, 2000, became effective July 1, 2001. The contribution requirements are determined as a percentage of payroll. The employer rates were calculated on the alternate funding method permitted by Section 31453.5 of the Government Code. The"entry age normal funding" method is used to calculate the rate required to provide all the benefits promised to a new member. Unfunded costs resulting from this calculation are amortized over 17 years from the December 31,2000,valuation date. Active plan members are required to contribute an actuarially determined percentage of their annual covered salary. The required percentage rates vary according to the benefit section and entry age of the employee. The rates in effect during fiscal year 2001-2002 (based on covered payroll as of January 1,2001)ranged from 3.99 percent to 10.37 percent of the employees' annual covered salary. The County employer rates of contribution, calculated as a percentage of the County's covered payroll of$427,866,000 as of January 1,2001, for fiscal year 2001-2002,were: General Members,Tier 1 19.09% General Members,Tier 11 13.67 General Members,Tier Ill 14.75 Safety Members 20.84 The County's annual pension cost and prepaid pension asset,computed in accordance with GASB 27, Accounting for .Pensions by State and Local Governmental Employers, for the year ended June 30, 2002,were as follows: Annual required contribution(County fiscal year basis) $ 43,833,000 Interest on pension asset (23,484,000) Adjustment to the annual required contribution 38,319,000 Annual pension cost 58,668,000 Contributions made 43,833,000 Decrease in pension asset (14,835,000) Pension asset,beginning of year 293 558,000 Pension asset,end of year $ 278,723,000 69 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2042 The following table shows the County's annual pension cost and the percentage contributed, for the 2002 _...._ fiscal year and each of the two preceding years: Fiscal Year Annual Pension Percentage of Net pension Ended June 30, Cost(APC) APC Contributed Asset 2000 $ 43,313,000 78.05% $ 305,576,000 2001 50,921,000 76.40% 293,558,000 2002 58,668,000 74.71% 278,723,000 The County has made its annual required contribution (ARC) for each of the past three years. The difference between the ARC and the annual pension cost (APC) is due to the amortization of the Net Pension Asset. See Note 20.13—Subsequent Events for additional information. 16. PAULSON LAWSUIT SETTLEMENT During the year ended December 31, 1999, CCCERA settled its litigation, entitled Vernon D. Paulson, et al. v. Board of Retirement of the Contra Costa Employees' Retirement Association, et al, As of October 14, 1999,all legal documents to finalize the case settlement were signed by the court. The consolidated lawsuit was brought on behalf of a class of retired members of CCCERA regarding the inclusions and the exclusions from"final"compensation that are used in calculating members' retirement benefits as a result of the Ventura Decision. The Ventura Decision held that a County Retirement System operating under provisions of the County Employees Retirement Law of 1937 must include certain types of cash incentive payments and additional pay elements received by an employee, within the employees' "compensation earnable" and "final" compensation when calculating the employee's retirement benefits. A settlement agreement has been entered into with all parties and a petitioners' class has been certified consisting of all retired members of CCCERA whose effective retirement date was on or before September 30, 1997(i.e.,the period prior to the October 1, 1997 effective date of the Ventura Decision). The Board has designated $90 million from unrestricted excess earnings to cover the anticipated liability of the settlement. Interest at the actuarially assumed rate(currently 8.50 percent per annum)is credited to the settlement amount until the final liability is determined. As claim forms are submitted, benefits recalculated and paid, the funds will be transferred to the Employer Advance Reserve to cover the liability. The costs will then be "funded" to the Retiree Reserves. It is anticipated that it could take another year for CCCERA to determine the final effect of this case. The recalculation and distribution of past and future benefits will be conducted in batches. As of December 31, 2001, CCCERA has already recalculated and paid 16 batches(3,203 claimants), for a total of$50.8 million. As of March 2002, CCCERA has recalculated batches 17 through 19 (462 claimants), for a total of$3.0 million in past benefits. Of the $24.8 million paid and accrued for 2001, $2.2 million 70 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 pertains to the current year and $27.6 million is for periods prior to the year ended December 31, 2001, and is recorded as a prior period adjustment on the Statement of Changes In Fiduciary Net Assets — Fiduciary Funds. The liability for past benefits cannot be reasonably estimated due to the complexity _. involved in calculating the "Paulson Benefit." As calculations are completed, the liability for the past benefits will be recognized. As of December 31, 2001, the Paulson Lawsuit settlement designation is $53.1 million. 17. PATIENT SERVICE REVENUE AND RECEIVABLES The County Hospital grants credit without collateral to its patients, most of whom are local residents and are insured under third-party payer agreements. Charges for services are reported at estimated net realizable amounts from patients, third-party payers and others for services rendered and include estimated retroactive revenue adjustments due to future audits, reviews, and investigations. Retroactive adjustments are considered in the recognition of revenue on an estimated basis in the period the related . services are rendered, and such amounts are adjusted in future periods as adjustments become known or as years are no longer subject to such audits,reviews,or investigations. Laws and regulations governing the Medicare and Medi-Cal programs are extremely complex and subject to interpretation. As a result, there is at least a reasonable possibility that recorded estimates will change _. by a material amount in the near term. The County Hospital's Medicare and Medi-Cal cost reports have been audited by the fiscal intermediary through June 30, 2000. As such,the cost reports for the prior year are still under review by Oscal intermediaries and have not been settled due to certain unresolved reimbursement issues. The County believes it has adequately provided for any liabilities that may arise from the fiscal intermediaries' audits. Net receivables from patients and third-party payers at June 30,2002,are summarized as follows: _. Medicare $ 13,617,000 Medi-Cal 10,322,000 Insurance and other third-party payers 4,137,000 Total $ 28,076,000 18. RISK MANAGEMENT The County self-insures its unemployment, dental and management long-term disability. The County is self-insured to $750,000 per occurrence for workers' compensation, and maintains $10 million of excess insurance coverage per occurrence with commercial insurance carriers. The County is self-insured to $1 million per occurrence on public and automobile liability, and maintains $30 million excess insurance coverage with commercial insurance carriers. Liability claims arising from operations at the County's two airports are fully insured to$100 million under a separate commercial insurance policy. The County is self-insured to $500,000 per occurrence on medical malpractice and maintains $10 million of excess insurance with commercial insurance carriers. The County adjusts all self-insured claims in-house. 71 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 The County maintains up to $600 million "All Risk" insurance coverage subject to a $50,000 deductible to cover its property, except for loss caused by earthquake or flood. Loss caused by earthquake is insured to $90 million and is subject to a minimum $1 million deductible. Loss caused by flood is insured to $200 million and is subject to a$100,000 deductible. The County maintains a separate insurance policy to cover the Sheriff-Coroner's helicopter for $1.6 million and up to$50 million for liability arising from the helicopter use. During the past three years there have been no instances of the amount of claim settlements exceeding insurance coverage. Internal Service Funds are used to account for the County's self-insurance activities. It is the County's policy to provide in each fiscal year, by charges to affected operating funds, amounts sufficient to cover the estimated expenditures for self-insured claims. Charges to operating funds are recorded as expenditures/expenses of such funds and revenues of the Internal Service Funds. Accrual and payment of claims are recorded in the Internal Service Funds. The County has accrued a liability of$95.1 million at June 30, 2002, for all self-insured claims in the Internal Service Funds, which includes an amount for incurred but not reported claims. The self- insurance reserve is based on actuarially determined amounts for workers' compensation, public and automobile liability, and medical liability and based on management's estimates for all other reserves. In the opinion of the County, the amounts accrued are adequate to cover claims incurred but not reported in addition to known claims. Changes to the Internal Service Funds' claims liability amount for fiscal years 2000-2001 and 2001-2002 are as follows(in thousands): Liability at June 30,2000 $ 80,337 Current year claims and changes in estimates 24,119 Claim payments (24,435) Liability at June 30,2001 80,021 Current year claims and changes in estimates 57,740 Claim payments (42,706) Liability at June 30,2002 $ 95,055 The actuarially determined claims liabilities, including incurred but not reported claims, are based on the estimated ultimate cost of settling the claims, using past experience adjusted for current trends, and any other factors that modify past experience. It also includes incremental claim adjustment expenses. In addition, estimated recoveries on settled and unsettled claims were evaluated in terms of their estimated realizable value and deducted from the liability for unpaid claims. 72 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 19. COMMITMEN'T'S AND CONTINGENCIES _. A. Grants The County participates in a number of federal and State grant programs which are subject to financial and compliance audits by the grantors or their representatives. Audits of certain grant programs through June 30, 2002, have not yet been conducted. Accordingly, the County's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The County believes that such disallowances, if any, would not have a material effect on .. the basic financial statements. B. Health Insurance Health care benefits for active and retired employees are jointly financed by the beneficiaries and by the County. Most employees have a choice of participation in five medical plans: Kaiser Permanente, a private health maintenance organization (HMO); Health Net (HMO); Health Net (PPO); and the Contra Costa Health Plans(CCHP) A and B, operated by the County Health Services Department. Employees represented by either the Deputy Sheriffs' Association (DSA), District Attorney Investigators' Association (DATA), or United Professional Fire Fighters' IAFF Local 1230 are eligible to participate in medical plans administered by the California Public Employees' Retirement System(CaIPERS). For non-CalPERS administered medical plans, the County subvents 80.0 percent of Kaiser, 80.0 percent Health Net (HMO), 60.0 percent Health Net (PPO) and 98.0 percent of CCHP A and 90.0 percent of CCHP B premiums for plan members. The County subvention for CaIPERS administered plans is a flat rate depending on the employees' union representation and the number of dependents covered under the plans. All permanent employees have a choice of two dental plans: a County self- funded plan administered by Delta Dental, and a PMI Delta Care Plan. The County's self-funded plan is an indemnity program and the PMI Delta Care plan is a prepaid program. The County's contribution to health and dental plans during fiscal year 2001-2002 for active employees was $47,711,000. The County's liability for health care benefits is limited to its annual contribution. C. Postemployinent Benefits Cather Than Pensions In addition to providing retirement benefits as described in Note 15, retired employees are allowed to continue participation in the medical and dental plans described above. As of June 30, 2002, there were 4,040 retired employees participating in the health plans, and the County contributed $16,335,000 toward payment of the premiums. The cost of retiree health care is recognized when the County makes its contribution on a pay-as-you-go basis and is accounted for in the General Fund, Special Revenue Library and Fire District Funds, Enterprise Funds, or Fiduciary Funds as appropriate. This postemployment benefit was approved by Board of Supervisors resolution number 73 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 264 on August 22, 1961, with ars effective date of October 1, 1961. To be eligible, the retiring employee must have been a member of a participating health plan at the date of retirement. D. Special Assessment Debt The County is considered to be "obligated in some manner," as defined by GASB Statement No. 6, Accounting and Financial Reporting for Special Assessments, for its special assessment debt. The County is obligated to foreclose on properties for which owners have failed to pay assessment installments as they fall due and the County may honor deficiencies to the extent that lien foreclosure _. proceeds are insufficient. The County's obligation to advance monies to pay debt service in the event of delinquent assessment installments is limited to the amount of remaining original bond proceeds and installments received. Special assessment debt is included in the County's statement of net assets and special assessment transactions are included in the Assessment Districts Debt Service Fund. Debt service payments are made from special assessments of the related special assessment district. E. Construction Commitments The County had entered into contracts for the construction of certain projects. At June 30, 2002, there were outstanding commitments of $6,067,000 for the Martinez Health Center project, _. $20,109,000 for the Juvenile Hall Replacement project, $5,422,000 for the Family Law Center project, and$4,465,000 for the new Powers Child Care Center project. F. Pending Legal Matters Numerous lawsuits are pending or threatened against the County. The County has recorded actuarially determined reserves in the Internal Service Funds to adequately cover estimated potential material adverse losses at June 30, 2002. 20. SUBSEQUENT EVENTS A. 2002-2003 Tax and Revenue Anticipation Notes On October 17, 2002, the County issued $55,000,000 of short-terns tax and revenue anticipation notes. The notes bear interest at 2.50 percent and mature on November 17,2003. B. 2002 Lease Revenue Bonds,Series B In September 2002, the County of Contra Costa Public Financing Authority issued $25,440,000 in lease revenue bonds (2002 Series B), with interest rates ranging from 2.0 to 4.6 percent, The proceeds will be used to defease $25,870,000 of 1992 Certificates of Participation (Consolidated Capital Projects issue). C. Consolidation of East County Fire Districts As of November 1, 2002, the Bethel Island, East Diablo and Oakley Fire Protection Districts will be consolidated into a new district called the East Contra Costa Fire Protection District. An informal study concluded that this consolidation allows for a more cost-effective application of existing 74 COUNTY OF CONTRA COSTA NOTES TO THE BASIC FINANCIAL STATEMENTS June 30,2002 resources to provide a higher level of fire protection and emergency medical response services in the Bethel Island, East Diablo, and Oakley Fire Protection District areas. Funding for the new district will come primarily from property taxes; and, it will also receive funds through County Service Area EMS-1 (emergency medical services). There will be no change in the governance of the new district, as the Board of Supervisors will remain the governing body. D. Contra Costa County Employees' Retirement Association(CCCERA) On October 1. 2002, the Board of Supervisors approved revised retirement benefits for CCCERA members. The revised benefits include a 3 percent of eligible salary per year of service to safety employees retiring at age 50, and 2 percent of eligible salary per year of service to regular employees _. retiring at age 55 and also a cost of living adjustment (COLA) for safety employees and regular employees. Also approved was a $200 per month additional benefit for retirees who retired prior to January 1, 1983. In the past, CCCERA has been able to contribute a portion of excess earnings from its investment portfolio to the County in the form of subsidies to cover a portion of the County's required retirement contributions. However, CCCERA's investment portfolio has experienced a decline in market value and CCCERA has recently informed the County that subsidies would cease after December 2002. The additional net County cost of retirement contributions is expected to be$12 million in fiscal year 2002-2003 and$25 million in fiscal year 2003-2004. E. State Budget The State is addressing a $35 billion shortfall of projected revenues compared to expenditures for the 18-month period of January 1, 2003, through June 30, 2004. This is expected to lead to a significant, but undetermined,reduction of County revenue. The County receives approximately 20 percent of its revenues from taxes and a significant portion of the remainder is provided by the State. 75 Y'�)Iy •♦ Rf/1 yy `, I 1 r - ! t _ ♦1jr � sI COUNTY OF CONTRA COSTA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENERAL FUND FOR TEE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Actual Amounts Variance- Budgeted Amounts Budgetary Positive Original Final Basis (Negative) Revenues: Taxes $ 190,038 190,038 200,571 10,533 Licenses,permits and franchise fees 7,335 7,787 23,782 15,995 Fines,forfeitures and penalties 13,431 13,750 14,508 758 Use of money and property 12,312 12,339 10,527 (1,812) Intergovernmental 474,330 540,418 506,352 (34,066) Charges for services 155,212 171,690 155,713 (15,977) Other revenue 38,406 93,158 74,613 18,545 T0tW Revenues: 891,064 1,029,180 986,066 (43,114) Expenditures: Current: General Government: Administrator 3,654 3,779 3,369 410 Assessor 11,760 12,442 11,694 748 Auditor Controller 6,297 5,797 5,686 111 Board of Supervisors 3,582 4,171 3,655 516 Building Maintenance 8,343 15,251 15,141 110 Building QTY Cost 17,390 17,362 14,365 2,997 Central Service/Mcrofilmn 295 472 306 166 Clerk of the Board 495 531 463 68 Community pity Access Television 895 895 698 197 County Counsel 3,526 3,858 3,149 709 Crockett-Rodeo Revenues 992 992 248 744 Economic Development 332 339 313 26 Elections 4,777 4,792 4,766 26 En ployee Benefits 29,562 24,892 15,043 9,849 Fleet Services 2,110 5,430 1,622 3,808 General Services Administration 1 1 (1) 2 Human Resources 7,445 7,414 4,877 2,537 Information Technology 2,594 2,544 1,969 575 Insurance 9,367 9,802 9,395 407 Management Information Systems 1,399 1,615 601 1,014 Personnel Merit Board 97 97 72 25 Plant Acquisition 30,907 115,396 25,513 89,883 Purchasing 732 864 729 135 Revenue Collections 1,889 1,889 1,841 48 Telephone Exchange 4,694 4,935 2,403 2,532 Treasurer-Tax Collector 3,830 4,018 3,683 335 UAAL Pension Bond Debt Service Transfers (3,225) _ (3,225) (3,225) Total Creneral Govemment 153,740 246,353 128,375 117,978 (continued) 77 COUNTY OF CONTRA COSTA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Actual Amounts Variance- Budgeted Amounts Budgetary Positive Original Final Basis (Negative) Public Protection: Agriculture 3,164 3,074 2,847 227 Aninal Services 5,400 6,050 5,672 378 CCC Departtriemt Child Support Services 21,713 21,453 19,990 1,463 Comminity Development 5,595 5,839 5,072 767 Conflict Defense Services 1,148 1,148 1,039 109 coag. 1,580 1,611 1,591 20 Criminal Grand Jury 77 77 58 19 District Attorney 20,515 20,498 18,677 1,821 District Attorney Family Support 1 1 1 Emergency Services 2.749 2,599 2,444 155 Flood Control 834 838 668 170 Grand Jury 92 92 82 10 Jail 45,035 46.243 46,107 136 Jail-Health Services 7,711 8,957 8,917 40 Justice System Program 4,495 4,495 1,460 3,435 Juvenile Dependency Mediation 108 108 108 Law and Justice Systems 346 346 272 74 Local Agency Formation 258 308 275 33 Probation-Programs 21,518 22,256 20,105 2,151 Probation-Facilities 16,214 16,963 16,719 244 Probation-Care of Court Wards 8,332 8,332 7,889 443 Public Administrator 188 188 186 2 Public 14,819 15,412 14,724 688 Recoer . 2,677 2,677 2,393 284 Sheriff 65,692 67,643 65,784 1,859 Trial Court Programs 20,520 22,154 22,152 2 Vehicle Theft Programs 1,260 1,260 740 520 UAAL Pension Bond Debt Service Transfer (11,502) (11,502) (11,542) Total Public Protection 260,539 269,120 254,070 15,050 Health and Sanitation: Children's Services6,243 5,312 5,225 87 Conservator/Guardianship 1,278 1,267 1267 Environmental Health 10 285 9,686 9,315 371 General Sewer Planning 23 24 24 Health Services Hotr less program 4,114 3,879 3,128 751 Medical Disproportionate Share 22,407 21,681 21,681 MentalHealth 79,715 84,551 78,667 5,884 Public Health 37,957 38,619 38,447 172 Solid Waste Management 478 478 344 134 Substance Abuse 16,731 18,331 17,655 676 UAAL Pension Bond Debt Service Transfer 3,140 (3,140) (3,140) Total Health and Sanitation 176,091 180,688 172,613 8,075 (continued) 78 COUNTY OF CONTRA COSTA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL GENE ARAL FUND FOR THE FISCAL YEAR ENDED JUNE 30,2002 - (In Thousands) Actual Amounts Variance- _ BudgetedAmts Budgetary Positive -original Final . Basis _ (Negative) Public Assistance: Ann.Adler Child&Fainly 195 195 172 23 CoirtnunityDeveloptnerlt 6,984 14,275 12,269 2,006 Coninunity Services 20,635 23,394 22,481 913 Housing Rehabilitation 203 229 229 EHSD-Adtn&�on 313 5,356 3,076 2,280 EHSD-Child&Family 86,598 96,426 95,812 614 EHSD-Aging&Adult 69,548 64,872 61,879 2,993 EHSD-Workforce Services 124,749 127,316 117,839 9,477 EHSD-WT-RC Investment Board 9,136 9,136 6,081 3,055 _. Services lntegmtion 626 626 232 394 Veterans Services 531 571 525 46 URAL Pension Bond Debt Service Transfer 5,483) _�)- (5,4833) Total Public Assistance 314 0353_ 36 913 315,112 �21,801 - Education: Cooperative baension Services 227 227 211 16 UAAL Pension Bond Debt Service Transfer (6) (6) {6) Total Education 221 221 205 16 Public Ways and Facilities: Public Works 30,681 30,568 23,629 6,939 RoadConstnxction 17,359 30,237 23,046 7,191 UAAL Pension Bond Debt Service Transfer (996 (996) 99 Total Public Ways and Facilities 47,044 59,809 45,679 14,130 Recreation and Culture: Park Administration 1 1 1 Total Recreation and Culture I 1 I Debt Service: hiterest 4,222 4,222 2,215 2,007 Capital Outlay 7,415 7,415 7,415 Tom Expenditures 963,308 1104`742 925,684 179,058 Excess of Revenues OverlUnder Experatitures 72,244 (75,562) 60,382 135,944 Other Finandtg Sources(Uses): ! Transfers in 23,568 23,568 23,568 Transfers out (76,347) (76,347) (76,347) Capital lease financing 9,907 9,907 9,907 Net Other Financing Sources(Uses) _ (42,872) 42,872 (42,872) Net Change in Fund Balances (115,116) 118,434 17,510 135,944 Fund Balance at Beginning of year,as Previously Reported 144,607 144,607 144,607 Prior period adjustment 7,285 7,285 7,285 Fund Balance at Beginning of Year,as Restated 151,892 151,892 151,892 Fund Balance at End of Year $ 36,776 33,458 169,402 135,944 (concluded) 79 COUNTY OF CONTRA COSTA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION June 30,2002 BUDGETS AND BUDGETARY ACCOUNTING After a series of public hearings and in accordance with the provisions of Sections 29000-29145 of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County Board of Supervisors legally adopts a budget for each fiscal year on or before October 2. This budget establishes the maximum authorized expenditures for the fiscal year that cannot be exceeded except by subsequent amendments to the budget by the Board of Supervisors. Budgets are adopted for the General Fund on the modified accrual basis. Expenditures are controlled by management at the object (summary accounts) level within budget units (departments) of the County. The legal level of control is at the department level. Supplemental appropriations, which are normally financed by unanticipated revenues during the year, and any amendments or transfers of appropriations between summary accounts or departments must be approved by the Board of Supervisors. Pursuant to a Board of Supervisors Resolution,the County Administrator is authorized to approve transfers of appropriations among summary accounts within a department as deemed necessary and appropriate. Accordingly, the legal level of budgetary control by the Board of Supervisors is at the department level. Budgeted amounts in the budgetary comparison schedule are reported as originally adopted and as amended during the fiscal year by resolutions approved by the Board of Supervisors. The County uses an encumbrance system as an extension of normal budgetary accounting. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Encumbrances are combined with expenditures for budgetary comparison purposes. Unencumbered appropriations lapse at year-end. The amounts reported as expenditures by department include amounts charged each department to service the pension obligation bond debt because the budget includes these amounts as expenditures. "URAL Pension Bond Debt Service Transfer" is a reporting adjustment made at the function level to achieve agreement with the financial statements where these expenditures are reported as transfers in accordance with GAAP. 80 - COLNTY OF CONTRA COSTA CONMr,dNG BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2002 (In Thousands) Special Debt Capital Revenue Service Projects Permanent Funds Funds Funds Fund Tota! Assets: _._.._. Cash and investinents $ 223,034 65,213 49,919 2,140 340,306 Accounts receivable and accrued revenue 11,423 232 1 11,656 Due finm other fiords 8,847 2,713 515 12,075 Advances to other fiords 4,883 4,883 Notes receivable 7,279 7,279 Prepaid items and deposits 413 413 Land held for resale 1,164 122 1,286 TtW Assets $ 257,043 68,158 50,557 2,140 377,898 Liabilities and Fund Balances: Liabilities: Short term notes $ Accounts payable and accred liabilities 11,043 1,297 210 12,550 Due to other fluids 23,808 10,215 391 61 34,475 Advances from other fimds 4,107 90 824 5,021 Deferred revenue 26,988 26,988 Total Liabilities 65,946 11,602 1,425 61 79,034 Fund Balances: Reserved for: Encunib aiices 7,229 37 7,266 Advances to other fluids 4,883 4,883 Prepaid items and deposits 413 413 Lard held for resale 1,164 122 1,286 Horsing projects 616 616 Debt service 27,464 27,464 NonwMaidabie pernranent fiord 1,726 1,726 Lhareserved,reported in: Special revenue fimds 176,792 176,792 Debt service fiords 29,092 29,092 Capital projects fiords 48,973 48,973 Pern�anent fiord 353 353 Total Fund Balances 191,097 56,556 49,132 r 2,079 `298,864 Total Liabilities and Fund Balances $ 257,043 68,158 50,557 2,140 377,898 81 COUNTY OF CONTRA COSTA COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR.ENDED JUNE 30,2002 (In Thousands) Special Debt Capital Revenue Service Projects Pemnanent Funds Funds Funds Fund Total Revenues: Taxes $ 109,423 9,814 2,827 122 064 Licenses,permits and franchise fees 11,495 11,495 Fines,forfeitures and penalties 4,017 4,017 Use of money and property 5,342 5,783 2,070 42 13,237 Intergovemm-rital 38,775 9 588 39,372 Charges for services 40,875 40,875 Other revenue 18,033 1,607 27 19,667 Toth Revenues 227,960 17,213 51512 42 250,727 Expenditures: Current: General govemnxnt 1,976 1,976 Public protection 123,863 78 123,941 Health and sanitation 9,551 9,551 Public assistance 14,982 3,781 3,798 22„561 Education 16,162 16,162 Public ways and facilities 43,150 1 43,151 Recreation and culture 1,099 1,099 Debt service: Principal 83 25,027 25,110 Bond issuance cost 412 412 Interest 683 33,385 24 34,092 Capital outlay 24,821 24,821 Total 211,549 87,426 3,901 302,876 Excess(Deficiency)of Revenues Over (Under)Expenditures 16,411 (70,213)_ 1,611 42 (52,149) Other Financing Sources(Uses): Transfers in 2,760 45,902 48,662 Transfers out (5,422) (1,464) (60) (6,946) 500 Proceeds from the sale of mal estate 500 Proceeds from issuance of debt 12,650 12,650 54,866 Total Other Financing Sources(Uses) (2,162) 57,088 (�) Net Change in Find Balances _ 14 249 (13,125) 11611 �(18) 2,717 Fund Balances at Beginning of Year, Previously Reported 65,617 47,380 257,017 Adjustments to beginning furA balances 32,828 4,064 141 2,097 39,130 Fund Balanus at Beginning of Year,as Restated 176,848 69,681 47,521 2,097 296,147 Fund Balances at End of Year $ 191,097 56,556 49,132 2 079 298,864 82 Nanmajor Special Revenue Funds SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenues that are restricted by law or administrative action to expenditures for specified purposes. Nonmajor special revenue funds used by the County are listed below: ROAD FUNDS These Funds were established to provide for maintenance and construction of roadways. Revenues consist primarily of the County's share of State highway user taxes and are supplemented by Federal funds. LIBRARY FUND This Fund was established to provide library services for all areas of the County except the City of Richmond. Property taxes provide most of the Fund's revenues. FIRE PROTECTION FUNDS These Special District Funds provide fire protection services to both cities and unincorporated areas in the County. They are financed primarily by property taxes. HEALTH AND SANITATION FUNDS These Funds provide a variety of health and sanitation services. They are financed by State grants,the County"s share of the tobacco tax and user fees. SERVICE AREAS FUNDS These Special District Funds provide services such as lighting, park, or street maintenance to specific areas in the County. They are financed by property taxes and user charges. FLOOD CONTROL FUNDS These Special District Funds provide services to control flood and storm waters. Revenues are primarily received from property taxes and federal grants. LAW ENFORCEMENT FUNDS These Funds provide for a variety of law enforcement services financed by property taxes, narcotics seizures and court fines and fees. COURTS AND CRIMINAL JUSTICE FUNDS These Funds are used for the improvement of courthouse and criminal justice facilities and related automated information systems. Revenues are derived from court fines and fees. _ 83 RECORDER/CLERK MODERNIZATION FUNDS These Funds provide for automation of civil and small claims functions of the courts and for micrographics and modernization of the Recorder's Office. Revenues received are from filing and recording fees. LAND DEVELOPMENT FUND This Fund was established to report growth management related activities, such as Building Inspection, Public Works engineering and Community Development growth management related services. REDEVELOPMENT AGENCY(RDA) FUNDS These Funds are used to account for the financial resources designated for the improvement of targeted low to moderate income housing areas and the elimination of blight. CHILD DEVELOPMENT FUND -.-. This Fund is used to account for the financial resources designated for the County's Child Development programs. IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY(IHSS)FUND This Fund is used to provide services to both providers and recipients of in-home care delivered through the In-Home Supportive Services program. OTHER SPECIAL REVENUE FUNDS These Funds account for the activities of several non-grant Special Revenue Funds. They include Fish and Game, Survey Monuments,Victim Assistance, Sans Crainte Drainage and County Water Districts. 84 / 1 1 i...., �.� may, •". J a� � V `` ` COYJ COUNTY OF CONTRA COSTA CCMINING BALANCE SHEET SPECIAL REVENUE FUNDS J1.NE 30,2002 On Thousands! Fire Health a& Service Flood Road Library Protection Sanitation Areas Control Assets: Cash and investments $ 47,400 9,900 39,043 6,065 14,298 19,634 Accounts receivable and accrued revenue 5,414 773 1,630 314 64 850 Due from other fluids 1,240 258 633 43 607 227 Advances to other funds Nates receivable Prepaid items and deposits 91 209 1 Land held for resale Total Assets $ 54,145 10,931 41,515 6,422 14,969 20,712 Liabilities and Fund Balances I.aabilities: Accounts payable and accrued liabilities $ 915 1,107 5,294 477 803 256 Due to other funds 2,884 395 248 1,941 1,051 2,746 Advances from other funds 138 Deferred revenue 1,500 14 20 9 Total inabilities 5,299 1,516 5,562 2,427 1,854 3,140 Fund Balances: Reserved for. F.ncun*mnces 442 1,252 3,808 1 162 327 Advances to other funds Prepaid items and deposits 91 209 1 land held for resale Housing projects Unreserved: Designated for equiprmnt replacement 4,341 68 296 Undesignated 43,972 8,095 31,936 3,994 12,953 16,948 Total Fund Balances 48,846 9,415 35,953 3,995 13,115 17,572 Total U"fles and Fund Balances $ 54,145 10,931 41,515 6,422 14,969 20,712 86 Courts& Recorder/ In-Home Other Law Criminal Clerk Land Redevelopment Child Supportive Special Enforcement Justice Modernization Developmrent Agency Development Services Revenue Total 26,430 1,381 7,268 29,644 4,671 17,300 223,034 95 335 36 322 1 914 377 298 11,423 70 90 24 1,324 158 3,050 746 377 8,847 4,883 4,883 1,740 5,539 7,279 100 8 4 413 1,164 1,164 26,595 1,806 7,328 31,290 7,834 3,972 1,127 28,397 257,043 150 189 50 912 643 81 166 11,043 5,778 204 312 1,778 245 3,349 866 2,011 23,808 3,969 4,107 32 17,659 1,740 59 5,955 26,988 5,928 425 362 20,349 5,954 4,051 947 8,132 65,946 629 19 485 17 4 83 7,229 4,883 4,883 100 8 4 413 1,164 1,164 616 616 369 5,074 20,038 1,381 6,947 10,087 (104) 172 15,299 171,718 20,667 1,381 6,966 10,941 1,880 (79) 180 20,265 191,097 26,595 1,806 7,328 31,290 7,834 3,972 1,127 28,397 257,043 87 __ ............................................................................... ...... .......... . ................ .................................... . . ............... COUNTY OF CONTRA COSTA COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Fire Health& Service Flood Road Library Protection Sanitation Areas Control Revenues: Taxes $ 14,596 12,650 62,695 4,519 3,179 5,178 Licenses,permits and franchise fees 149 17 3,587 Fines,forfertures and penalties 1,216 Use of money and property 1,142 17 529 129 439 443 Intergovernmental 6,286 3,317 2,615 4,761 1,411 512 Charges for services 5,036 738 2,518 103 2,969 11,380 Other revenue 2,716 1,346 871 111 845 Total Revenues 29,776 18,068 69,377 10,728 8,126 21,945 Expenditures: Current: General government 280 _.._. Public protection 67,499 6,380 16,136 Health and sanitation 9,551 Public assistance Education 16,035 127 Public ways and facilities 33,797 711 1 904 Recreation and culture Debt service: Principal 77 6 Interest 7 134 Total Expenditures 33,797 16,315 67,499 9,635 8,128 16,271 Excess(Deficiency)of Revenues Over (Under)Expenditures (4,021 1,753 1,878 1,093 (2) 5,674 Other Financing Sources(Uses): Transfers in 102 1,394 206 15 Transfers out (434) (206) (8) (15) (102) Sale of real estate 500 Total Other Financing Sources(Uses) 602 960 (8) Net Change in Fund Balances 3,419 2,713 1,878 1,085 (2) 5,572 Fund Balances at Beginning of Year, as previously Reported 33,767 6,496 29,130 2,910 11,844 15,670 Adjustments to beginning fiord balance 18,498 206 4,945 1,273 (3,670) Fund Balances at Beginning of Year,as Restated 52,265 6,702 34,075 2,910 13,117 12,000 Fund Balances at End of Year $ 48,846 9,415 35,953 3,995 13,115 17,572 88 Courts& Recorder/ In-Home Other Law Crir ianal Clerk Lard Redevelopment Child Supportive Special 1 nforcenrnt Justice Moderrtizatlon Develgxwm Services Revenue Total 4,818 1,474 314 109,423 7,692 50 11,495 387 2,395 19 4,017 469 188 528 460 (20) 1,018 5,342 9,229 174 17 76 8,026 959 1,392 38,775 701 3,113 11,130 3,187 40,875 574 6,525 3,546 3 1,496 18,433 16,178 2,757 3,130 25,951 1,934 11,552 962 7,476 227,960 _. 13 1 1,682 1,976 14,988 1 1,407 14,427 3,025 123,863 9,551 1,403 11,497 599 1,483 14,982 16,162 8,641 43,150 195 1,099 83 79 463 683 15,196 2 1,407 23,068 1,482 11,497 599 6,653 211,549 982 2,755 1,723 2,883 452 55 _ 363 823 16,411 532 11 500 2,760 (I,I06) (2,440) (22) (401) (349) (214) (125) (5,422) 500 574) (2-,-440) (22) - (390) (349) (214) _. 375 (2,162) 448 315 1,701 2,493 103 _ (159) 363 1,198 14,249 17,278 791 5,265 4,879 803 202 14,985 144,020 2,981 275 3,569 974 (122) (183) 4,082 32,828 20,259 1,066 5,265 8,448 1,777 80 (183) 19,067 176,848 20,667 1,381 6,96E Id,941 1,880 (79) 180 20,265 191,097 89 _ ............................................................................................. ...................................................... .......................... COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE ROAD SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Armunts Actual Positive Original Final_ Amounts (Negative) Reveraies: Taxes S 14,596 14,596 Use of money and property 1,810 1,810 1,142 (668} Intergovernmental23,589 9,013 6,286 (2,727) Charges for services 3,687 4,277 5,036 759 Other revenue 1,069 1,037 2,716 1,679 Total Revenues 30,155 30,733 29,776 (957) Expenditures: Public Ways and Facilities Services and supplies52,464 50,147 28,970 21,177 2,310 5,526 4,256 1,270 Other charges Fixed assets 687 868 571 297 Reserves 561 561 561 Total Expenditures 56,022 57102 33,797 23,305 Excess(Deficiency)of Revenues Over � ) � (25,867) (26,369) (4,021 22,348 Other Financing Sources Transfers in 102 102 102 Soo 500 Sale of real estate ----- Total Other Financing Sources 102 602 602 Net Change in Fund Balms 25,765 (25,767) (3,419) _ 22,348 Fund Balance at Beginning of Year, as Previously Reported 33,767 33,767 33,767 Adjustments to beginning fund balance 18,498 18,498 18,498 Fund Balance at Beginning of Year,as Restated 52>265 52,265 52,265 Fund Balance at End of Year S 26,500 26,49$ 48,846 22,348 90 ................................................................................................................ ........................... .. . .. ..................................................................................................................................... .. ................................................................................................. ............................................................ . .................... COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE LIBRARY SPECIAL REVENUE FUND FOR TIAE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Amounts Actual Positive _ Revenues: Original Final -AMDunis _ f Negative} Taxes $ 11,636 11,636 12,650 1,014 Use of money and property 4 4 17 I3 lntemgMem nrntai 2,880 2,880 3,317 437 Charges for services 699 699 738 39 Other revenue 1,973 1,017 1,346 329 Total Revenues 17,192 16,236 18,068 1,832 - Expenditures: General Govemnr:trt Fixed assets 1,576 1,549 280 1,269 Total General Government 1,576 1,549 280 1,269 Education Salaries and benefits 11,312 11,253 9,930 1,323 Services and supplies 3,283 4,263 3,638 625 Other charges 2,209 2,282 2,112 170 Fixed assets 1,032 443 355 88 Total Education 17,836 _ 18,241 16,035 2,206 Total Expenditures 19,412 _ -19,790 16,315 3,475 Excess(Deficiency)of Revenues Over (Under)Expenditures (2,220) (3,554) 1,753 5,307 Other Financing Sources(Uses): Transfers in 1,334 1,394 60 - Transfers out (434) (434) (434) Total Other Financing Sources(Uses) (434) 900 960 60 Net Charge in Fund Balance (2,654) {2,654) 2,713 5,367 Fund Balance at Beginning of Year, as Previously Reported 6,496 6,496 6,496 Adjus netts to beginning fluid balance 206 206 206 Fund Balance at Beginning of Year,as Restated 6,702 6,702 6,702 Fund Balance at End of Year $ 4,048 4,048 9,415 5,367 91 COUNTY OF CONTRA COSTA BUDGE'T'ARY COMPARISON SCHEDULE FIRE PROTECTION SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Arnounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 60,823 60,823 62,695 1,872 Licenses,permits,and franchise fees 197 197 149 (48) Use of money and property 424 424 529 I05 goy 953 953 2,615 1,662 Charges for services 1,638 1,685 2,518 833 Other revenue 420 628 871 243 Total Revenues 64,455 64,710 69,377 4,667 Expenditures: Crurent Public Protection Salaries and benefits 52,808 51,364 50,051 1,313 Services and supplies 13,041 13,010 8,533 4,477 Other charges 2,335 2,614 2,196 418 Fixed assets 18,969 20,420 6,719 13,701 T 87,153 87,408 67,499 19,909 Excess(Deficiency)of Revenues Over (Under)Expenditures (22,698) (22,698) 1,878 24,576 Other Financing Sources(Uses): Transfers in 243 206 (37) Transfers out (243) (206) 37 Total Other Financing Sources(Ekes) Net Ctrange in Fund Balance (22,698) (22,698) I,878 24,576 Fund Balance at Beginning of the Year, as Previously Reported 29,130 29,130 29,I30 Adjumnents to beginning fund balance 4,945 4,945 4,945 Fund Balance at Beginning of the Year,as Restated 34,075 34,075 34,075 Fund Balance at End of Year $ 11,377 11,377 35,953 24,576 92 COUNTY OF CONTRA COSTA BUMF TARP COWARISON SCHEDULE HEALTH AND SANITATION SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Amounts Actual Positive OrFinal Amounts (Negative) Revenues: Taxes $ 4,443 4,514 4,519 5 Fines,forfeitures and penalties 878 1,171 1,216 45 Use of money and property 4 9 129 120 Intergovernmental 5,074 4,842 4,761 (81) Charges for services 90 90 103 13 Other revenue 28 28 (28) Total Revenues 10,517 10,654 10,728 _. 74 Expenditures: Current: Health and Sanitation Salaries and benefits 385 397 145 252 Services and supplies 9,436 9,294 7,648 1,646 Other charges 3,443 3,681 1,746 1,935 Fixed assets 66 95 12 83 Total Health and Sanitation 13,330 13,467 9,5,51 3,916 Debt service: Principal 77 77 77 Interest 7 7 7 T0tal Expenditures 13,414 13,551 9,635 3,916 Excess(Deficiency)of Revenues Over (Under)Exlwnditures (2,897) (2,897) 1,093 3,990 Other Financing Uses: Transfers out (8) (8) (8) Total Other Fkwwing Uses (8) (8) (8) --- Net Change in Fund Balance (2,905) (2,905) 1,085 3,990 Fund Balance at Beginning of Year _ 2,910 2,910 2 910 Fund Balance at End of Year $ 5 5 3,995 3,990 93 COUNTY OF CONTRA COSTA BUDGETARY COMPARLSON SCHEDULE SERVICE AREAS SPECIAL.REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Ficial Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 3,003 3,005 3,179 174 Licenses,pemvts and franchise fees 20 20 17 (3) Use of money and property 542 546 439 (107) -- Intergoverarnental 1,250 1,250 1,411 161 Charges for services 2,288 2,288 2,969 681 Other revenue 141 159 111 (48) Total Revenues 7,244 7,268 8,126 858 Expendtures Current: Public Protection Services and supplies 9,726 9,288 4,316 4,972 Other charges 1,551 2,035 2,035 Fixed assets 1,665 1,655 29 1,626 Removes 59 59 59 Total Public Protection 13,001 13,037 6,380 6,657 Education Services and supplies 117 117 117 Other charges 130 130 127 3 Total Education 247 247 127 120 Public Ways and Facilities Salaries and benefits Services and supplies 2,193 2,099 578 1,521 Other charges 5 117 109 8 Fixed assets 605 588 24 564 Total Public Ways and Facilities 2,803 2,804 711 2,093 (continued) 94 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COUNTY OF CQWRA.COSTA BUDGETARY COMPARISON SCHEDULE SERVECE AREAS SPECIAL REVENUE FUNDS FOR THE.FISCAL YEAR ENDED NNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Armunts Actual Positive Original Final Arnmints (Negative) _ Recreation and Culture """ — Salaries and benefits 2 2 2 Services and supplies 521 534 226 308 Other charges 191 197 178 19 Fixed assets 2,239 2,239 498 1,741 Total Recreation and Culture 2,953 2,972 904 2,068 Debt Service: Principal 6 (6) Total Expends tm 19,004 19,060 8,128 10,932 Excess(Deficiency)of Revemues Over (Under)Expenditures (11,760) (11,792) (2) 11,790 Otlrer Financing Sources(Uses), Transfers in I5 15 Transfers out (10) (15) (15) Total Other Financing Sources(Uses) _ (10) (15) is Net C7unge in Fund Balance (11,770) 11,807 (2) 11,805 Fund Balance at Beginning of Year, - _ as Previously Reported 11,844 11,844 11,844 Adjustments to beginning fund balance 1,273 1,273 1,273 Fund Balance at Beginning of Year, as Restated 13,117 13,117 13,117 Fund Balance at End of Year $ 1,347 1,310 13,115 11,805 (concluded) 95 COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE FLOOD CONTROL SPECIAL.REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 4,715 4,785 5,178 393 Licenses,permits and franchise fees 3,174 3,472 3,587 115 Use of money and erty 422 479 443 (36) prop Intergoverntt�ntal 470 773 512 (261) Charges for services 10,266 10,781 11,380 599 Other revenue 1,125 1,542 845 (697) Total Revenues 20,172 21,832 21,945 113 Expenditures: Ctiarrent: Public Protection Salaries and benefits 3 2 2 Services and dies 16,043 18,122 15,258 2,864 Other charges 10,832 9,772 811 8,961 Fixe}assets 116 381 65 316 Reserves 487 419 419 Total Public Protection 27,481 28,696 16,136 12,560 Public Ways and Facilities Services and supplies 2,499 2,499 2 499 Other charges 2 2 1 1 Total Public Ways and Facilities 2,501 2,501 1 2,500 Debt service: Principal 448 448 hiterest 134 98 234 (36) Total Expenditures 30,116 31,743 161271 15,472 Excess(Deficiency)of Revenues Over (Under)Expenditures (9,944) (9,911) 5,674 15,585 Other Financing Sources(Uses): Transfers in 16 16 {16) Transfers out (1,500) (1,533) 102 1,431 Total Other Financing Sources(Uses) (1,484) (1,517) 102 1,415 Net Change in Fund Balance (11,428) (11,428) 5,572 17,000 Fund Balance at Beginning of Year, as Poly Reported 15,670 15,670 15,670 Adjustments to beginning fiord balance (3,670) (3,670) (3,670) Fund Balance at Beginning of Year,as Restated 12,000 12,000 12,000 Fund dance at End of Year $ 572 572 17,572 17,000 96 ............................................................................................................................................................................ ... .. _............................................................................................................................. ......................... COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE LAW ENFORCEMENT SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR R-MED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Armunts Actual Positive Original Final Amounts a tive Revenges: Taxes $ 4,736 4,998 4,818 (180) Fines,forfeitures and penalties 383 383 387 4 Use of rmneY and property 80 120 469 349 Intergovernmental 5,697 6,731 9,229 2,498 Charges for services 297 2,788 701 (2,087) Other revenue 710 715 574 (141) Total Revenges 11,903 15,735 16,178 443 Expmditsaw. General Government Services and supplies 1,072 1,071 1,071 Other charges I I Fixed assts 1,209 1,208 13 1,195 Total General Govemtnent 2,281 2,280 13 2,267 Public Protection Salaries and benefits 1,374 1,654 1,485 169 Services and supplies 17,655 16,586 8,330 8,256 Other charges 3,502 6,503 5,131 1,372 Fixed assets 161 780 42 738 Total Public Protection 22,692 25,523 14,988 10,535 Recreation and Culture Salaries and benefits 4 5 5 Services and supplies 226 223 167 56 Other charges 21 23 23 Fixed assets 10 10 10 Total Recreation and Culture 261 261 195 66 Total Expenditures 25,234 28,064 15,196 12,868 Excess Wetency)of Revenges Over (Under)Expenditures (13,331) (12,329) 982 13,311 Other Financing Sources(Uses): Transfers in 60 60 532 472 - Transfers out (106) (1,106) (1,106) Total Otter Firmw*g Sources(Uses) (46) {1,046) (574) 472 Net Change in Fund Balance (13,377) (13,375) 408 13,783 Fund Balance at Beginning of Year, as Previously P41xwW 17,278 17,278 17,278 Adjustments to beginning fund balance 2,981 2,981 2,981 Fund Balance at Beginning of Year,as Restated! 20,259 20,259 20,259 Fund Balance at End of Year $ 6,882 6,884 20,667 13,783 97 __ __ ....... __ COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE LAND DEVELOPMENT SPECIAL REVENUE FUND FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Armurts Actual Positive Original Final Amounts (Negative) Revenues: Licenses,permits and franchise fees S 10,826 10,842 7,692 {1,150) Use of rmney and property 528 528 528 Intergovemny-rntal 76 76 Charges for services 9,104 9,195 11,130 1,935 Other revenue 568 2,004 6,525 4,521 Total Revenues 21,026 22,569 25,951 3,382 Expenditures: Public Protection Salaries and benefits 7,126 6,637 6,224 413 Services and supplies 11,542 11,172 6,068 5,104 Other charges 1,071 1,833 1,811 22 Fixed assets 306 459 324 135 Total Public Protection 20,045 20,101 14,427 5,674 Public Ways and Facilities Services and supplies 9,055 10,317 8,427 1,890 Other charges 52 215 2 i4 1 Total Public Ways and Facilities 9,107 10,532 8,641 1,891 Total Expenditures 29,152 30,633 23,068 _ 7,565 Excess{Deficiency)of Revenues Over (Under)Expenditures (8,126) (8,064) 2,883 10,947 Other FinaMng Sources(Uses): Transfers in 11 11 Transfers out (341) (401) (401) Total Other Financing Sources(Uses) JL4 1) (401) (390) 11 Net Change in Fund Balance (8,467) (8,465) 2,493 10,958 Fund Balance at Beginning of Year, Previously Reported 4,879 4,879 4,879 Adjusrrnmts to beginning fund balance 3,569 3,569 3,569 Fund Balance at Beginning of Year,as Restated 8,448 8,448 8,448 Fund Balance at End of Year $ (19) (17) 10,941 10,958 100 ....... ............................. ..................................................................................................................................................... ............................................................................................................................................... . . ....................................................................................................................... . .................................................................................. ............................................ COUNTY OF CONTRA COSTA BUDGETARY GYlNWARISUN SCHEDULE REDEVELOPMENT AGENCY SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR 1010 RUNE 30,2002 (In Thousands) Variance with Final Budget yg4eted Armtmts Actual Positive Ongrnal Final Aarxuuits (Negative) Revenues: Tw(es $ 1,440 1,440 1,474 34 Use of money and property 55 55 460 405 Other revenue 2,200 2200, (2,200) Total Revenues 3,695 3,695 1,934 (1,761) Expenditures: Cturent: Public Assistance Services and applies 456 456 456 Other charges _ 6,708 6,708 1,403 5,305 Total Public Assistance 7,164 71164 1,903 5,761 Debt Service: Interest 79 {79) _. Total Expenditures 7,164 7,164 14$2 5,682 Exiess(Deficiency)of Revenues Over (Under)Eximiditures (3,469) (3,469) 452 3,921 - Other FSnancing Uses: Transfers out (349) (349) Tote Other Financing Uses (349) (349 Net Glhange in Fund Balance (3,469) (3,469) 103 _ 3,572 Fund Balance at Beginning of Year, as Previously Reported 803 803 803 Adjustments to beginning fiord balance 974 974 974 Fund Balance at Beginning of Year,as Restated 1,777 1,777 1,777 Fund Balance at End of Year $1,692) (1,692) 1,880 3,572 101 ................................................................................................... _ ........................................................ ........................................ ............ ------------ COUNTY OF CONTRA COSTA. BUDGETARY COMPARISON SCHEDULE OTHER SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Amounts Actual Positive Ori ji!Lal Final Amounts (Negative) Revenues: Taxes 228 228 314 816 Licenses,permits and franchise fees 104 104 50 (54) Fines,forfeitures and penalties 5 5 19 14 Use of money and property 2,568 2,604 1,018 (1,586) Intergovemmental 1,798 1,798 1,392 (406) Charges for services 503 581 3,187 2,606 Other revenue 498 1,933 1,496 (437) Total Revenues 5,704 7,253 7,476 223 Expenditures: Current: General Government Services and supplies 4,275 2,637 45 2,592 Other charges 1,638 1,637 1 Total General Governnient 4,275 4,275 1,682 2,593 Public Protection Salaries and benefits Services and supplies 2,804 4,200 2,904 1,296 Other charges 44 40 4 Fixed assets 70 70 Total Public Protection 2,804 4,325 3,025 1,300 Public Assistance Salaries and benefits 3 33 33 Services and supplies 8,118 8,163 1,479 6,684 Other charges 3 5 4 Total Public Assistance 8,124 8,201 1,483 6,718 Debt service: Interest 4,819 4,819 463 4,356 Total Expenditures 20,022 21,620 6,653 14,967 Excess(Deficiency)of Revenues Over (Under)Expenditures (14,318) (14,367) 823 15,190 Other Financhc Sources(Uses): Transfers in 500 500 Transfers out (125) (125) Total Other Financing Sources(Uses) 375 375 Net Change in Fund Balance (14,318) (14,367) 1,198 15,565 Fund Balance at Beginning of Year, as Previously Reported 14,985 14,985 14,985 Adjustrnents to beginning Rind balance 4,082 4,082 4,082 Fund Balance at Beginning of Year,as Restated 19,067 19,067 19,067 Fund Balance at End of Year 4,749 4,700 20,265 15,565 104 .......................- ... ........... ............................ ........... ........ .............. ........ ........ ....... Nonmajor Debt Service Funds DEBT SERVICE FUNDS Debt Service Funds are used to account for accumulation of resources for, and payment of,principal and interest on the County's general long-term debt. RECREATION AND PARK BUNDS FUND This Fund is used to accumulate monies for payment of recreation and park bonds. Financing is provided by specific property tax levies. STORM DRAINAGE BONDS FUND This Fund is used to accumulate monies for payment of stone drainage bonds. Financing is provided by specific property tax levies. PUBLIC FINANCING AUTHORITY FUNDS These Funds are used to accumulate resources for payment of general long-term debt incurred for the various financing activities of the County of Contra Costa Public Financing Authority. PUBLIC FACILITIES CORPORATION FUNDS These Funds are used to accumulate resources for payment of general long-term debt incurred for the various financing activities ofthe Contra Costa County Public Facilities Corporation. REDEVELOPMENT AGENCY(RDA) FUNDS These Funds are used to accumulate resources for payment of general long-term debt incurred for the purchase of real property within the area of the Redevelopment Agency. PENSION BOND FUND This Fund is used to accumulate monies for payment of taxable pension obligation bonds. These bonds were issued to reduce or extinguish the County's Unfunded Actuarial Accrued Liability(LJAAL). ASSESSMENT DISTRICTS FUNDS These Funds were established to account for the accumulation of monies for payment of Assessment District debt issued to fund Assessment District capital improvement projects. 105 COUNTY OF CONTRA COSTA COMBINING BALANCE SHEET DEBT SERVICE FUNDS JUNE 30,2002 (In Thousands) Recreation Storm Public and Park Drainage Financing Bonds Bonds Authority Assets: Cash and investments $ 21 44,636 Accounts receivable and accrued revenue 8 Due from other fluids Total Assets 29 44,636 liabilities and Fund Balances: liabilities: Accounts payable and accrued liabilities Due to other fiords 10,215 Advance from other fiords Total Liabilities 10,215 Fund Balances: Reserved for: Debt service 29 5,329 Unreserved,designated for: Future projects 29,092 Total Fund Balances 29 34,421 Total liabilities and Fund Balances $ 29 44,636 106 ................................................................................................._............... ..................................................................................................... .......................................................................................... ................................................. ............... Public Facilities Redevelopment Pension Assessrnent mon �eY Band Districts Total 3,536 6,927 5,005 5,088 65,213 93 128 3 232 2,713 2,713 3,536 7,024 1,896 5,091 68,158 1,091 2 244 1,297 14,215 90 94 1,181 2 204 111602 3,536 5,839 7,844 4,887 27,464 29,492 3,536 5,839 7,844 4,887 56,556 3,536 7,020 7,846 5,091 68,158 147 .......................................................................................... __ ....................................................................................... .................................................................. ............................................. COUNTY OF CONTRA COSTA COMBINING STATEMENT OF REYENUFS,EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Recreation Storm Public and Park DrainaW Financing Bonds Bonds Authority Revenues: Taxes $ 527 5 Use of money and property 1,005 lntergovernrnental 9 Other revenue Total Revenues 536 5 1,005 Expenditures: Current: General Government Public Assistance 2 Capital outlay 24,821 Debt service: pip 445 5 4,130 Bond issuance cost 412 Interest 84 1 8,689 Total Expenditures 531 6 38,052 Excess(Deficiency)of Revenues Over (Under)Expenditures 5 (1) (37,047) Other Financing Sources(Uses): Transfers in 13,728 Transfers out (1,248) Proceeds from issuance of debt 12,650 Total Other Financing Sources(lases) 25,130 Net Change in Fund Balances 5 (I) (I I M7) Fund Balances at Beginning of Year,as Previously Reported 24 1 42,321 Adjustments to beginning fund balances 401? Fund Balances at Beginning of Year,as Restated 24 1 46,338 Fund Balances at End of Year $ 29 34,421 108 .................................................................................................._._................................................. .............................................................................................................................. .......... ......................................................................... . .......................................... Public Facilities Redevelopment Pension Assessment Cion AgcY Bond Districts Total 3,071 6,211 9,814 3,450 297 920 111 5,783 9 1,282 325 1,607 3,450 3,368 2,202 6,647 17,213 192 7 3,580 3,781 24,821 2,145 700 15,915 1,687 25,027 412 1,592 2,624 19,354 1,041 33,385 3,929 3,324 35,276 6,308 87,426 - - (479) 44 (33,074) 339 (70,213) 349 31,825 45,902 (216) (1,464) 12,650 349 31,825 (216) 57,088 (479) 393 (1,249) 123 (13,125) 4,015 5,446 9,056 4,754 65,617 37 10 4,064 4,015 5,446 9,093 4,764 69,681 3,536 5,839 7,844 4,887 56,556 109 . ........................................................................................... ................................................................................................................................ . ... _ _ . ............................................................................................ .................................................................... .................................................................... ................ .... .............................. ...... ..................................... COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE RECREATION AND PARK BONDS DEBT SERVICE FUND FOR THE FISCAL YEAR.ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Arrounts Actual Positive Original Final Amounts (Negative) Revenwes: Taxes $ 529 529 527 (2) Intergovernmental 5 5 9 4 Total Revenues 534 534 536 2 Expenditures: Current: Public Assistance 28 28 2 26 Debt service: Principal 445 445 445 Interest 84 84 84 Total Expenditures 557 557 531 26 Excess(Deficiency)of Revenues Over ((ander)Expenditures (23) (23) 5 28 Net ChwVe in Fund Balance (23) (23) 5 28 Fund Balance at Beginning of Year 24 24 24 Fund Balance at End of Year $ t 1 29 28 110 COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE STORM DRAINAGE BONDS DEBT SERVICE FUND FOR THE FISCAL YEAR.ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Amounts Actual Positive Original Final Armunts (Negative) Revenues: Taxes $ 6 6 5 (I) Expenditures: Debt service: Principal 5 5 5 Interest 1 I I Services and supplies I I I Total Expenditures 7 7 6 I Excess(Deficiency)of Revenues Over (Under)Expenditures (I) (I) (I) Net Change in I+nd Balance (I) (I) (I) Fund Balance at Beginning of Year I I I Fund Balance at End of Year $ III COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY DEBT SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with ' Final Budget Budgeted Amotmts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 3,107 3,107 3,071 (36) Use of money and property 297 297 Total Revenues 3,107 3,107 3,368 261 Expenditures: Debt service: Principal 700 700 700 Interest 2,407 2,407 2,624 (217) Total Expenditures 3,107 3,107 3,324 (217) Excess(Deficiency)of Revenues Over (Under)Expenditures 44 44 Other Financing Sources Transfers in 349 349 Total Other Financing Sources 349 349 Net Change in Fund Balance 393 393 Fund Balance at Beginning of Year 5,446 5,446 5,446 Fund Balance at End of Year $ 5,446 5,446 5,839 393 112 COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCFIEDULE PENSION BOND DEBT SERVICE FUND FOR.THE FISCAL YEAR E 0ED.JUNE 30,2002 __.. (In Thousands) Variance with Final Budget Budgeted Amounts Actual Positive Original Final Airaunts a tive Revenues: - Use of money and property $ 1,063 1,063 920 (143) Other revenue 1,414 11282 (132) Total Revenues 1,063 2,477 2,202 (275) Expenditures: Current. Public Assistance 44 44 7 37 Debt service: Principal 12,406 15,915 15,915 Interest 15,163 19,354 19,354 Total Expenditures 27,613 35,313 35,276 37 Deficiency of Revenues Under Expenditures {26x550) (32,836) (33,074) (238) Other Financing Sources: Transfers in 25,539 31,825 31,825 Total Other Fmancing Sources 25,539 31,825 31,825 Net Change in Fund Balance (1,011) (1,011) (1,249) (238) Fund Balance at Beginning of Year, as Previously Reported 9,056 9,056 9,056 Adjustments to begiiuiing fiord balance 37 37 37 Fund Balance at Beginning of Year,as Restated 9,093 9,093 9,093 Fund Balance at End of Year $ $,082 8,082 7,844 (238) 113 ... ........ ..... _.. ............................................... ............................................ .. . yt • R it t + $ t� r Nonmajor Capital Projects Funds CAPITAL PROJECTS FUNDS Capital Projects Funds are used to account for financial resources to be used for the acquisition of land or acquisition and construction of major facilities other than those financed in the proprietary fund type. REDEVELOPMENT AGENCY(RDA)FUNDS The Redevelopment Agency was formed for the acquisition of real property and construction of improvements thereon in the County's unincorporated areas for the purpose of removing or preventing blight. COUNTY FACILITIES FUNDS These Funds are used to report improvements to Juvenile Hall facilities and other miscellaneous capital projects. ASSESSMENT DISTRICTS FUNDS These Funds were established to account for all the capital improvement projects constructed using Assessment District funds. 115 . .................................................................................................... ............................................................................................................................................ .................................................................................................... ..................................--.................................... COUNTY OF CONTRA COSTA COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS JUNE 30,2002 (In Thousands) Redevelopment County Assessanent Agency Facilities Districts Total Assets: Cash and investments $ 39,711 180 10,028 49,919 Accounts receivable and accrued revenue(net) I 1 Due from other funds 515 515 Land held for resale 122 122 Total Assets $ 40,349 180 10,028 50,557 liabilites and Fund Balances: liabilities: Accounts payable and accrued liabilities $ 131 78 1 210 Due to other funds 391 391 Advances from other funds 824 824 Total liabilities 1346 78 I 1,425 Fund balances: Reserved for: Encumbrances 37 37 Land held for resale 122 122 Unreserved: Designated for capital projects 38,844 38,844 Undesignated 102 10,027 10,129 Total Raid Balances 39,003 102 10,027 49,132 Total liabilities and Fund Balances $ 40,349 180 10,028 50,557 116 COUNTY OF CONTRA COSTA COMBINING STAT174IDNT OF REVENUES,EXPENDITURES ANI)CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND FOR THE FISCAL YEAR.ENDED JUNE 30,2002 (In Thousands) Redevelopment county Assessment Agency Facilities Districts Total Revenues: Taxes $ 2,827 2,827 Use of money and proper 1,833 2 235 2,070 Intergovernmental 588 588 Other revenue 27 27 Total Revenues 5,275 2 235 5,512 Expenditures: Current: General govennnent Public protection 78 78 Public assistance 3,798 3,798 Public ways and facilities 1 1 Debt service: Interest 24 24 Total Expenditures 3,822 78 1 3,901 Excess(Deficiency)of Revenues Over - (Linder)Expenditures 1,453 (76) 234 1,611 - Net Change in Fund Bunce 1,453 (76) 234 1,611 Fund Balances at Beginning of Year, as Previously Reported 37,428 178 9,774 47,380 Adjustrrents to beghft f and balances 122 19 141 Fund Balances at Beginning of Year,as Restated 37,550 178 9,793 47,521 Fund Balances at End of Year $ 39,003 102 10,027 49,132 117 .................. ... ... COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR.ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 3,246 3,246 2,827 (419) Use ofnxmey and property 292 292 1,833 1,541 Intergovernmental 588 588 Other revenue 3,153 3,153 27 (3,126) Total Revenues 6,691 6,691 5,275 (1,416) Expenditures: Current: Public Assistance Salaries and benefits 8 9 9 Services and supplies 2,945 2,945 2,945 Other charges 38,449 38,449 3,798 34,651 Total Public Assistance 41,402 41,403 3,798 37,605 Debt service: Interest 24 (24) Total Expenditures 41,402 41,403 3,822 37,581 Excess(Deficiency)of Revenues Over (Under)Expenditures (34,711) (34,712) 1,453 36,165 Net Change in Fund Balance (34,711) (34,712) 1,453 36,165 Fund Balance at Beginning of Year, as Previously Reported 37,428 37,428 37,428 Adjustments to beginning fund balance 122 122 122 Fund Balance at Beginning of Year,as Restated 37,550 37,550 37,550 Fund Balance at End of Year $ 2,839 2,838 39,003 36,165 118 COUNTY OF CONTRA COSTA BUDGETARY COMPARISON SCHEDULE COUNTY FACILITES CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Variance with Final Budget Budgeted Armunts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ 2 2 Total Revenues 2 2 FxpencGtures: Current: Public Protection Services and supplies 178 178 78 100 Total Public Protection 178 178 78 100 Total Expenditures 178 178 78 100 . Excess(Deficiency)of Revenues Over - (Under)Expenclitures (178) (178) (76) 102 Net Cluinge in Ftmd Balance (178) (178) (76) 102 Fund Balance at Beginning of Year 178 178 178 Fund Balance at End of Year $ 102 102 119 .......... . ....... _. ................ ................................................... .. .................. `� of 1 E-"J w ro i 57�ftbCO �J1`�'� Nonmajor Governmental Fund PERMANENT FUND Permanent funds are used to report resources that are legally restricted to the extent that only earnings,not principal,may be used for purposes that support the reporting government's programs. The County's permanent fund is included in the combining financial statements of the nonmajor governmental funds(starting on page 81). LIBRARY GIFT PERMANENT FUND This fund is used to account for principal trust amounts received and related interest income. The interest portion of the fund is used to support the County Libraries. 121 .............................................................................................................................................................................................................................................. i t � ' •CQUI'i'"'` ................................ ...................................................111.11,11,111,111, ........................................................................ . ...................................... ............................ ............................. Nonmajor Enterprise Funds ENTERPRISE FUNDS Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is to have the costs (expenses, including depreciation and amortization)of providing goods or services to the general public on a continuing basis be financed primarily through user charges;or where the County has decided that periodic determination of revenues earned,expenses incurred and/or net income is appropriate for capital maintenance,public policy, management control,accountability or other purposes. AIRPORT FUND This Fund was established to account for the financial activities of the Buchanan Field and Byron Airport aviation facilities. Revenues include receipts under rental and lease arrangements involving County airport facilities, and State and Federal aid. HOUSING AUTHORITY FUNDS These Funds are used to account for the financial resources designated for housing and housing assistance to low income residents of Contra Costa County. SHERIFF LAW ENFORCEMENT TRAINING CENTER FUND This Fund was established to account for the financial activities of the Sheriff Law Enforcement Training Center. The Center provides training to law enforcement personnel from the County Sheriffs Office and other agencies. Revenues include tuition fees paid by the student or law enforcement agency and State aid. MAJOR RISK MEDICAL INSURANCE FUND This Fund accounts for operations of the County's participation in the State's Major Risk Medical Insurance Program. The Program is designed to provide health insurance to Californians who are unable to obtain coverage on the open market. The Contra Costa Health Plan acts as the fiscal intermediary for the State. The County is not at risk for the costs of services in the Program, which is funded through a combination of subscriber premiums and State funding from tobacco tax monies, 123 ...................................................................... ..................... ...................... ................................................................. - 111-............ ............ COUNTY OF CONTRA COSTA - COMBINING STATEMENT OF NET ASSE'T'S NONMAJOR ENIYRPRLSE FUNDS JUNE 30,2002* (In Thousands) Sheriff Law Major Housing Enforcernent Risk Medical Airport Authonty Training Center Insurance Total Assets: Current assets: Cash and investments $ 1,186 12,540 13,726 Accounts receivable and accrued revenue(net) 137 2,330 165 540 3,172 Inventories 9 9 Are from other funds 97 97 Notes receivable 1,659 1,659 Prepaid iters and deposits 57 134 191 Total current assets 1,486 16,663 165 540 18,854 Capital assets: Nondepreciable 9,539 4,702 14,241 Depreciable,net 17,750 12,879 46 30,675 Total Assets $ 28,775 34,244 211 540 63,770 liabilities and Net Assets Liabilities: Current liabilities: Accounts payable and accrued liabilities $ 242 2,071 124 4 2,441 Accrued interest 54 54 Due to other funds 205 745 443 1,393 Deferred revenue 7,706 7,706 Current portion of long-term debt 670 37 2 709 Total current liabilities 1,171 9,814 871 447 12,303 Noncurrent portion of long-term liabilities: Capital lease obligations 1,546 1,546 Compensated absences 46 330 15 391 Bonds and notes payable 734 185 919 Total noncurrent portion of long-term liabilities 2,326 515 15 2,856 Total liabilities 3,497 10,329 886 447 15,159 Net Assets: Invested in capital assets,net of related debt 24,345 17,581 46 41,972 Unrestricted 933 6,334 (721) 93 6,639 Total Net Assets 25,278 23,915 (675) 93 48,611 Total liabilities and Net Assets S 28,775 34,244 211 540 63,770 *Housing Authority Funds reported as of March 31,2002 124 COUNTY OF CONTRA COSTA COMBINING STATE WENT OF REVS JES,EXPENSES AND CHANGES IN FUND NET ASSETS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30,2002* (In Thousands) Sheriff Law Major Housing Enforcement Risk Medical Airport Authority Lmhun Center Insurance Total Operating Revenues: Charges for services $ 3,002 3,536 200 931 7,669 Other revenue 130 944 1,074 Total Operating Revenues 3,132 � 4,480 200 931 8,743 Operating Expenses: Salaries and employee benefits 1,015 479 1,494 Services and supplies 824 591 931 2,346 Other charges 279 61,942 32 62,253 Depreciation 1,887 2,952 4,839 Total Operating Expenses 4,005 64,894 1,102 931 70,932 Operating income(loss) (873) (60,414) (902) 6( 2,189) Nonoperating Revenues(Expenses): State and federal grants 130 59,459 242 59,831 . -. Investment income 23 271 294 Interest expense (293) `...�� (437) Total Nonoperating Revenue(Expenses) (140) 59,586 242 59,688 Loss Before Transfers (1,013) (828) (660) (2,501) Transfers out (55) (15) (70) Change in Net Assets (1,068) (828) (675) (2,571) Net Assets at Beginning of Year,as Previously Reported 25,367 26,365 93 51,825 Adjustments to beginning net assets 979 (1,622) (643) Net Assets at Beginning of Year,as Restated 26,346 24,743 93 51,182 Net Assets at End of Year $ 25,278 23,915 (675) 93 48,611 *Housing Authority Funds reported as of March 31,2002. 125 .... ................... . COUNTY OF CONTRA COSTA COMBINING STATEMENT OF CASH FLAWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR.ENDED JUNE 30,2002* (In Thousands) Sheriff Law Major Housing Enforcement Risk Medical Airport Authority Training Center Insurance Total Cash Flows from Operating Activities: Cash received from customers/other fluids $ 3,013 11,615 35 1,142 15,805 Cash payrnent to suppliers for goods and services (1,083) (58,351) (233) (1,465) (61,132) Cash payment to employees far services (1,012) (6,195) (432) (7,639) Net Cash Provided by Operating Activities 9185( 2,931) (630) (323) 52,966 Cash flows from Noncapital Financing Activities: State and federal grants 130 59,459 242 59,831 Transfers paid (55) (15) (70) Due to other fiords 449 323 772 Net Cash Provided by(Used for)Noncapital Financing Activities 75 59,459 676 323 60,533 Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets (123) (2,048) (46) (2,217) Interest paid (205) (205) Lease purchase obligation principal payment (600) (600) Principal paid on bonds and certificates {60) (60) Net Cash Used in Capital and Related Financing Activities {988) 2,048) (46) (3,082) Cash Flows from Investing Activities: Interest received on investments 23 271 294 Investments,net (321) (321) Net Cash Provided by(Used in)Investing Activities 23 (50) (27) Net Increase in Cash and Cash Equivalents 28 4,430 4,458 Cash and Cash Equivalents at Beginning of Year 1,158 8,110 9,268 Cash and Cash Equivalents at End of Year $ 1,186 12,540 13,726 Reconciliation of Operating Loss to Net Cash Provided by(Used for)Operating Activities: Operating Less $ (873) (60,414) (902) (62,189) Adjustments to Reconcile Operating Loss to Net Cash Provided by(Used for)Operating Activities: Depreciation 1,887 2,952 4,839 Changes in operating assets and liabilities: Decrease(increase;)in: Accounts receivable and accrued revenue (124) (1,487) (165) 211 (1,565) Inventories 8 8 Due from other funds 5 5 Prepaid iters and deposits 1 49 50 Increase(decrease)in: Accounts payable and accred liabilities 7 (33) 124 3 101 Employee benefits payable (3) 77 17 91 Due to other funds 10 296 (537) (231) Deferred revenue 5,925 5,925 Net Cash Provided by(Used in)Operating Activities $ 9185( 2,931) (630) 323 52,966 Noncash capital financing activities(Airport): Accrued interest $ 87 Lease discount amortization 33 Capital asset adjustment 9 *Housing Authority Funds reported as of March 31,2002. 126 ................................................................................. .... ......... ......... . .. .................................................................................................................................. ................................................................... . ............................. INTERNAL SERVICE FUNDS SELF-INSURANCE FUNDS These Funds are established to account for administrative costs and for payments of claims under the various insurance programs. Revenues are primarily premiums paid by other operating funds and interest on investments. The insurance programs are: Employee Dental Insurance Employee Medical Insurance—Fund terminated as of June 30,2002 Long-Term Disability Insurance(Management Employees) Workers'Compensation Insurance • County General + Fire Protection Automotive Liability Insurance Public(General)Liability Insurance State Unemployment Insurance Medical Liability Insurance Special District Property Insurance 127 ................................................... . COUNTY OF CONTRA COSTA CONHW41[NG BALANCE SHEET INTERNAL SERVICE FUNDS JUNE 30,2002 (In Thousands) Employee Employee Long-Term Dental Medical Disability Innce Insurance Insurance Assets: Cash and investrnents $ 1,892 1,829 Accounts receivable and accrued revenue(net) Due from other fluids 72 Total Assets $ 1,892 72 1,829 IlA ities and Equity Liabilities: Due to other funds $ 43 72 26 Claims payable CLMWA 472 Noncurrent 425 Total Liabilities 515 72 451 Net Assets: Unrestricted net assets 1,377 1,378 Total Liabilities and Net Assets $ 1,892 72 1,829 128 Workers' Workers' Compensation Compensation Special Insurance Insurance Automotive Public State Medical District County Fire Liability Liability Unemployment Liability Property General Protection Insurance Insurance Insuuance Insurance Insurance Total 33,291 7,062 2,054 28,247 2,352 3,503 635 80,865 1,534 126 75 80 1y815 73 1,674 I 1,820 34,825 7,188 2,127 29,996 2,432 3,503 636 84,500 717 133 255 16 13 1,275 - 13,434 1,313 390 1,987 221 1,262 19,079 38,995 6,425 1,515 22,251 6,365 75,976 53,146 7,871 1,905 24,493 237 7,640 96,330 (18,321) (683) 222 5,503 2,195 (4,137) 636 (11,830) 34,825 7,188 2,127 29,996 2,432 3,503 636 84,500 129 ...................................................................... ...........................................-.... COUNTY OF CONTRA COSTA COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERV110E,FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (in Thousands) Employee Employee Long-Term Dental Medical Disability Insurance Insurance Insurance Operating Revenues: Charges for services $ 7,358 Other revenue 72 Total Operating Revenues 7,358 72 Operating Expenses: Services and supplies 499 104 Benefit and claim expense 6,577 943 Total Operating Expenses 7,076 1,047 Operating hWOtM(LAM) 282 72 (1,047) Nonoperating Revenues: State and federal Wants Investment income 28 64 hwmm(Loss)Before Transfers 310 72 (983) Transfers in Transfers out Changes in Net Assets 310 72 (983) Net Assets at Beginning of Year,as Previously Reported 1,067 683 2,361 Adjustments to beginning net assets (755) Net Assets at Beginning of Year,as Restated 1,067 (72) 2,361 Net Assets at End of Year 1,377 1,378 130 Workers' Workers' Compensation Compensation Special In aunce Insurance Automotive Public State Medical District County Fine Liability liability Unemployment Liability Property General Protection Insurance Insurance Insurance Insurance Insurance Total 14,233 1,546 547 6,561 902 282 31,429 964 1,036 14,233 1,546 547 6,561 902 964 282 32,465 2,742 295 93 4,397 36 1,275 177 9,618 25,096 3,695 551 5,173 542 (2) 131 42,706 27,838 3,990 644 9,570 578 1,273 308 52,324 (13,605) (2,444 (97) (3,009) 324 (309) (26) (19,859) 10 10 1,806 267 1,045 50 4 13 3,277 (11,799) (2,167) (97) (1,964) 374 (305) (13) (16,572) 3,000 3,000 (11,799) (2,167) (97) (1,964) 374 2,695 (13) (13,572) (6,522) 1,484 319 7,467 1,821 (6,832) 649 2,497 (755) (6,522) 1,484 319 7,467 1,821 (6,832) 649 1,742 (18,321) (683) 222 5,503 2,195 (4,137) 636 (11,830) 131 , -............................................................ ...................................................... COUNTY OF CONTRA COSTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Employee Employee Long-Term Dental Medical Disability Insurance Insurance Insurance Cash flows from operating activities: Cash received from customers/other funds $ 7,358 176 Cash payment to suppliers for goods and services (7,114) (662) (1,068) Net Cash Provided by(Used for)Operating Activities 244 (486) (1,068) Cash Flows from Noncapital Financing Activities: State and federal grants Transfers received Due to other finds 72 Net Cash Provided by(Used for)Noncapital Financing Activities 72. Cash Flows from Investing Activities: Interest received on investments 28 64 Net Cash Provided by Investing Activities 28 64 Net Increase(Decrease)in Cash and Cash Equivalents 272 (414) (1,004) Cash and Cash Equivalents at Beginning of Year 1,620 414 2,833 Cash and Cash Equivalents at End of Year $ 1,892 1,829 Reconciliation of Operating Income to Net Cash Provided by(Used for)Operating Activities: Operating Income(Loss) $ 282 72 (1,047) Adjustments to reconcile operating income(loss) to net cash provided by operating activities: Changes in operating assets and liabilities: Decrease(increase)in: Accounts receivable and accrued revenue 77 Due from other funds 27 Increase(decrease)in: Accounts payable and accrued liabilities (23) Due to other funds (38) (662) 2 Net Cash Provided by(Used for)Operating Activities 244 (1,068) 132 .............................. Workers' Workers' Compensation Compensation Special Insurance Insurance Automotive Public State Medical District County Fire Liability Liability Unenvloyn=t Liability Property General Protection Insurance Insurance Insurance Insurance Insurance Total 13,643 1,517 510 4,900 896 970 283 30,253 (29,003) (2,504) (239) (4,557) (582) (2,243) (328) (38,300) (5,360) (987) 271 343 314 (1,273) (45) (8,047) 10 10 3,000 3,000 72 10 3,000 3,082 1,806 267 1,045 50 4 13 3,277 1,806 267 1,045 50 4 13 3,277 -- (3,554) (710) 271 1,388 364 1,731 (32) (1,688) 36,845 7,772 1,783 26,859 1,988 1,772 667 82,553 33,291 7,062 2,054 28,247 2,352 3,503 635 80,865 - (13,605) (2,444) (97) (3,009) 324 (309) (26) (19,859) (590) (29) 13 (6) 6 1 (528) (37) (1,674) (1,68-4) 9,194 1,422 414 4,983 (956) 15,034 (359) 64 (9) 30 (4) (14) (20) (1,010) (5,360) {987) 271 343 314 (1,273) (45) 133 ;rFill ��^� 'ww■ 0 M r»,i It = t I , t - t r E3 x a !G � r r rA caIILJ� FIDUCIARY FUNDS AGENCY FUNDS TAX LOSSES RESERVE This Fund was established as a reserve for all delinquent secured taxes. It accumulates gains from tax sales and specified amounts of penalties and interest collected on delinquent secured taxes to cover --- possible future losses on the sale of tax-deeded property. UNAPPORTIONED TAXES These Funds account for unsecured taxes receivable, delinquent secured taxes, amounts which are impounded because of disputes or litigation and amounts held pending authority for apportionment. OTHER AGENCIES These Funds account for assets held by the County for individuals, private organizations and other governmental units. These funds include payroll deduction clearing and collections clearing funds. 135 ........................................................................... .................................................................. COUNTY OF CONTRA COSTA S1 ATEMENT OF CHANGES IN FI]DICUARY ASSETS AND LIABILMES AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Balance Balance July 1,2001 Additions Deductions June 30,2002 Tax Losses Reserve: Assets: Cash and investments 20,204 9,068 8,160 21,112 Due from other Rinds 4,103 5,983 4,103 5,983 Total Assets 24,307 15,051 12,263 27,095 Liabilities: Due to other fiords 59 63 59 63 ---------- Tax loss guarantees 24,248 10,240 7,456 27,032 Total Liabilities 24,307 10,303 7,515 27,095 Unapportioned Taxes: Assets: .......... Accounts receivable 8,490 73,652 81,176 966 Due fi-orn other funds 4,581 6,482 11,012 51 Taxes receivable 117,045 1,399,192 1,388,764 127,473 Total Assets 130,116 1,479,326 1,480,952 128,490 liabilities: Accounts payable $ 26,325 35,347 32,702 29,970 Due to other funds 27,580 7,323 17,342 17,561 Unapportioned taxes 76,211 1,356,158 1,350,410 81,959 Total Liabilities 130,116 1,398,828 1,400,454 128,490 Other Agencies As Restated: Assets: Cash and investments 114,976 1.577,905 1,584,402 108,479 Accounts receivable 21,987 20,451 31,657 10,781 Due from other funds 5,162 17,801 19,200 3,763 Total Assets 142,125 1,616,157 1,635,259 123,023 Liabilities: Warrants outstanding $ 34,829 584,625 579,321 40,133 Accounts payable 9,027 651,030 654,506 5,551 Due to other funds 31,411 20,529 44,221 7,719 Due to other agencies and districts 66,858 297,584 294,822 69,620 Total Liabilities 142,125 1,553,768 1,572,870 123,023 (continued) 136 ................ COUNTY OF CONTRA COSTA STATEMENT OF CHANGES IN F MCUARY ASSETS AND uABu ITIES AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Balance Balance July 1,2001 Additions Deductions June 30,2002 ToW&Agency Funds: Assets: - Cash and investments $ 135,180 1,586,973 1,592,562 129,591 Accounts receivable 30,477 94,103 112,833 11,747 Due from other frulds 13,846 30,266 34,315 9,797 Taxes receivable 117,045 1,399,192 1,388,764 127,473 Total Assets $ 296,548 3,110,534 3,128,474 278,608 - Liabilities: Warrants outstanding $ 34,829 584,625 579,321 40,133 Accounts payable 35,352 686,377 687,208 34,521 Due to other fiords 59,050 27,915 61,622 25,343 Unapportioned taxes 76,211 1,356,158 1,350,410 81,959 Tax loss guarantees 24,248 10,240 7,456 27,032 Due to other agencies and districts 66,858 297,584 294,822 69,620 Total liabilities $ 296,548 2,962,899 2,980,839 278,608 (concluded) 137 J ♦ 0 Ei x ro J � llrl` Y ........................................................................................................................................................................................................... ......................................................................... CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 139 . ..................... ............... ............................ ........ .................................................... ................................................................................................................................................................................................................................................................................................................................ / • � O ♦ 11! `� COTJ ................................................................................................................................................................................................................... .................... COUNTY OF CONTRA COSTA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF FUNDING SOURCES JUNE 30,2002 On Thousands) General Capital Assets: Land $ 60,108 Buildings and improvements 313,765 Buildings and improvements-lease purchases 131,974 Equipment 94,348 Equipinmt-lease purchase 8,367 Infi-astructure 304,094 Construction in progress 53,502 Total Governmental Funds Capital Asset 966,158 Investments in Capital Assets from General obligation bonds 10,240 Federal grants 45,153 State grants 79,409 Ckneral fund 386,134 Special revenue finds 442,119 Other government agencies 1,667 Gifts 1,436 Total Governmental Funds Capital Assets 966,158 141 ......................................................... COUNTY OF CONTRA COSTA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVPIY JUNE 30,2002 (In Thousands) Building& Buildings& Improvements Improve- Lease Function and Activity Total Land rents Purchases EquiLrwiq General Government: Legislative and adnvnistrative $ 476 476 Finance 1,008 9 849 Counsel 47 47 Personnel 61 61 Elections 1,849 1,849 Convr>unications 4,339 13 3,665 Property nunagerent 22,462 1,092 1,694 18,585 Plant acquisition 461,267 54,396 245,050 130,280 490 Other general 6,826 5,312 Total General Government 498,335 54,396 246,164 131,974 31,334 Public Protection: Judicial 1,503 1,485 Police protection 13,585 7 874 10,612 Detention and correction 35,536 1,492 30,988 1,320 Fire protection 46,184 2,020 16,862 27,302 Flood control 149,457 177 24 1,014 Protective inspection 2,308 2,207 Other protection 4,777 2,606 2,151 Total Public Protection 253,350 3,696 51,354 46,091 Health and Sanitation: Health 2,421 6 2,078 Hospital care 817 141 631 Sanitation 1,006 924 82 Total Health and Sanitation 4,244 141 930 2,791 Public Assistance: Assistance administration 3,213 2,984 Aid programs 340 74 Veteran's services 7 7 Other assistance 2,944 888 1,126 914 Total Public Assistance 6,504 888 1,126 3,979 Education: Library services 7,231 349 5,572 1,310 Agricultural education 6 6 Total Education 7,237 349 5,572 1,316 Public Ways and Facilities: Public ways 191,632 141 4,285 8,812 Total Public Ways and Facilities 191,632 141 4,285 8,812 Recreation and Cultural Services: Veteran's rerarial buildings 25 25 Recreation facilities 4,831 497 4,334 Total Recreation and Cultural Services 4,856 497 4,334 25 Total General Capital Assets $ 966,158 60,108 313,765 131,974 94,348 142 Equipnrnt Lease Construction Purchases ln�ure in Progress 150 661 1,091 31,051 1,514 3,416 31,051 18 2,092 1,736 133,861 14,381 101 20 3,967 133,861 14,381 337 45 382 229 266 16 511 91 170,233 8,070 91 170,233 8,070 8,367 304,094 53,502 143 COUNTY OF CONTRA COSTA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGES BY FUNCTION AND Acnvny FOR THE FISCAL YEAR ENDED JUNE 30,2002 (in Thousands) Balance July 1,2001 Balance Function and Activity (as restated) Additions Deletions Transfers June 30,2002 General Government: Legislative and administrative S 693 46 (251) (12) 476 Finance 1,951 171 (1,114) 1,008 Counsel 109 (62) 47 Personnel 122 (61) 61 Elections 1,626 339 (125) 9 1,849 Communications 4,058 423 (142) 4,339 Property nianagernent 21,372 2,647 (1,522) (35) 22,462 Plant acquisition 411,185 50,347 (74) (191) 461,207 Promotion 3 (3) Other general 6,294 817 (281) (4) 6,826 Total General Government 447,413 54,790 (3,635} 498,335 Public Protection: 1,503 1,801 334 (632) Judicial Police protection 13,902 1,374 (1,960) 269 13,585 Detention and correction 37,599 50 (2,118) 5 35,536 Fire protection 41,429 6,719 (1,964) 46,184 Flood control 149,318 184 (45) 149,457 2,432 367 (491) 2,308 Protective inspection 5,419 135 4.777 Other protection Total Public Protection 251,900 9,163 (7, 247 253,350 Health and Sanitation: Health 2,715 188 (482) 2,421 California children's services 16 (16) Hospital care 949 103 (221) (14) 817 1,006 Sanitation 1,010 -- - Total Health and Sanitation 4.690 291 (14) 4,244 Public Assistance: (1,133) 3,213 Assistance administration 3,279 1,067 Aid program 167 257 (84) 340 Veteran's services is (8) 3,193 116 ____.�365) 2, Other assistance Total Public Assistance 6,654 1,440 Education: 635 (117) 7,231 Library services 6,713 6 Agricultural education 6 7,237 Total Education 635 (117) Public Ways and Facilities: 170,533 2 (7 191,632_ Public ways Total Public Ways and Facilities12IL3L 191,632 Recreation and Cultural Services: 25 Veteran's memorial buildings 25 , Recreation facilities 4 333 498 4,831 , 498 4,856 Total Recreation and Cultural Services 4 358 Total Governmental Funds Capital Assets 892 966,158 267 88,677 4,786) 144 ■ ■ ■ � SECTION COUNTY OF CONTRA COSTA GOVERNMENT-WIDE EXPENSES BY FUNCTION GOVERNMENTAL ACTIVITIES FISCAL YEAR ENDED JUNE 30,2002 (In Thousands) Percentage Function Amount of Total General government $ 115,534 10.5% Public protection 365,757 33.0 Health and sanitation 184,109 16.7 Public assistance 328,450 29.8 Education 16,364 1.5 Public ways and facilities 56,197 5.1 Recreation and culture 793 0.1 Interest on debt 36,340 3.3 $ 1,103,544 100.0% - 147 .................................... ................... ..........-..... COUNTY OF CONTRA COSTA GOVERNMENT-WIDE REVENUES GOVERNMENTAL ACTIVITIES FISCAL YEAR ENDED JUNE 30,2002 (in Thousands) Percentage Program Revenues Amount of Total Charges for services $ 250,536 21.4% Operating grants and contributions 544,900 46.5 Capital grants and contributions 12,573 1.1 General Revenues Taxes 238,684 20.4 Grants/contributions not restricted 77,741 6.6 Investment earnings 27,035 2.3 Other 20,158 1.7 Total Program and General Revenues 1,171,627 100.0% 148 COUNTY OF CONTRA COSTA GENERAL COUNTY REVENUES BY SOURCE LAST TEN FISCAL YEARS _. (In Thousands) Fiscal Licenses, Fines, Year Permits& Forfeitures Use of Charges Ended Franchise and Money and Inter- for June 30, Taxes Fees Penalties _._.:perty . ;ovemmental Services Okher Totall 1993 $ 226,565 14,445 6,728 27,280 367,112 92,866 7,693 742,689 1994 173,384 12,529 12,654 27,953 448,668 102,545 14,750 792,483 1995 167,185 13,332 21,306 30,600 478,350 140,354 I4,923 866,050 1996 179,431 14,569 20,477 33,903 470,211 130,087 21,360 870,038 1997 184,805 14,265 17,343 35,457 469,257 127,208 25,585 873,920 1998 179,331 14,194 16,249 42,168 471,208 130,468 19,844 873,462 1999 192,915 16,221 17,088 40,649 502,908 145,210 27,283 942,274 2000 204,383 20,395 19,000 37,956 564,289 169,240 35,020 1,050,283 _ 2001 296,644 25,749 18,296 43,632 490,842 188,545 27,166 1,090,874 2002 322,635 35,277 18,525 23,764 545,724 196,588 94,280 1,236,793 NOTE: Includes all govenvrnental fiuid types. 149 COLTNIY OF CONTRA COSTA GENERAL COUNTY EXPENDITURES BY FUNCTION LAST TEN FISCAL YEARS (In Thousands) Fiscal Year Public Debt Ended General Public Health& Public Ways& Service June 30, Government Protection Sanitation Assistance Education Facilities &Other Total 1993 $ 66,211 226,248 136,933 239,151 11,342 41542 27,068 749,495 1994 66,008 229,263 154,556 275,713 9,260 34,743 40,817 810,360 1995 69,828 270,099 157,787 293,294 9,394 35,336 80,156 915,894 1996 84,137 257,933 138,243 286,457 12,878 39,536 72,515 891,699 1997 79,195 272,415 132,432 272,163 11,439 32,566 65,904 866,114 1998 85,786 266,707 147,867 268,633 11,774 33,071 76,088 889,926 1999 108,963 287,538 157,041 289,570 12,828 45,855 72,385 974,180 2000 101,772 307,260 164,142' 302,690 14,216 50,508 84,363 1,024,951 2001 106,380 325,821 161,220 294,317 14,589 54,611 79,084 1,036,022 2002 130,351 378,011 182,164 337,673 16,367 88,830 95,164 1,228,560 NOTE: Includes all govemtriental fiord types. Health and Sanitation includes operating transfers to the County Hospital and HMO Enterprise Funds($37,187,000 for fiscal year 2001-2002). 150 COUNTY OF CONTRA COSTA GENERAL COUNTY REVENUES BY SOURCE- CONSTANT DOLLARS(1)(2) LAST TEN FISCAL YEARS (In Thousands) Fiscal Licenses, Fines, Year Permits& Forfeitures Use of Chanes Ended Franchise and Money and Inter- For June 30, Taxes Fees Penalties Property governmental Services Other Total 1993 $ 156,478 9,977 4,647 18,841 253,548 64,138 5,313 512,942 1994 117,716 8,506 8,591 18,978 304,615 69,621 10,014 538,041 1995 111,290 8,875 14,183 20,369 318,422 93,429 9,934 576,502 1996 117,301 9,524 13,387 22,164 307,394 85,043 13,964 568,777 1997 117,287 9,053 11,007 22,503 297,815 80,733 16,238 554,636 _ 1998 110,087 8,713 9,975 25,886 289,262 80,091 12,182 536,196 1999 114,083 9,593 10,105 24,038 297,403 85,872 16,134 557,228 2000 115,962 11,572 10,780 21,535 320,164 96,023 19,870 595,906 2001 159,332 13,830 9,827 23,435 263,638 I01,270 14,591 585,923 2002 173,292 18,948 9,950 12,764 293,116 105,590 50,639 664,299 - - NOTES: (1)Includes all governmental fiend types. (2)The infomration for the years 1993 through 2002 has been adjusted using the average Consumer Price Index-Urban for each year with a base point of December, 1983,equal to 100. 151 COUNTY OF CONTRA COSTA GENERAL. COUNTY EXPENDCT WS BY FUNCTION-CONSTANT DOLLARS(1)(2) LAST TEN FISCAL YEARS {In Thousands) Fiscal Year Public Debt Ended General Public Health& Public Ways& Service June 30, Government Protection Sanitation Assistance Education Facilities &Other Total 1993 $ 45,729 156,259 94,574 165,171 7,833 29,382 18,695 517,643 1994 44,815 155,654 104,933 187,191 6,287 23,588 27,712 550,180 1995 46,482 179,796 105,034 195,236 6,253 23,522 53357 609,680 1996 55,003 168,620 90,375 187,268 8,419 25,846 47,406 582,937 1997 50,261 172,889 84,048 172,729 7,260 20,668 41,826 549,681 1998 52,662 163,724 90,772 164,907 7,228 20,301 46,708 546,302 1999 64,437 170,040 92,869 171,242 7,586 27,117 42,806 576,097 2000 57,743 174,332 93,130 171,739 8,066 28,657 47,866 581,533 2001 57,138 175,003 86,594 158,082 7,836 29,332 42,477 556,462 2002 70,013 203,035 97,843 181,369 8,791 47,7€2 51,114 659,877 NOTES: (1)Includes all governmental fund types. Health and Sanitation includes operating transfers to the County Hospital and HMC'Enterprise Funds in cm=t dollars($19,973,000 for fiscal year 2001-2002). (2)The infomration for the years 1993 through 2002 has been adjusted using the average Consurner Price Index-Urban for each year with a base point of December, 1983,equal to 100. 152 ..............I............................................................................................................................................................................ ..................................................................... COUNTY OF CONTRA COSTA ASSESSED VALUE OF TAXABLE PROPERTY(1) LAST TEN FISCAL YEARS (In Thousands) Assessed Value Net Increase Fiscal Year Assessed Ended Rim] Personal Value of Taxable Per- June 30, Property Property Total Exemptions property Amount tentage 1993 59,800,740 $ 2,501,057 62,301,797 908,476 $ 61,393,321 $ 2,971,134 5.09 % 1994 61,824,575 2,685,105 64,509,680 1,081,984 63,427,696 2,034,375 3.31 1995 63,992,943 2,406,789 66,399,732 1,105,367 65,294,365 1,866,669 2.94 1996 65,949,619 2,417,931 68,367,550 1,221,088 67,146,462 1,852,097 2.94 1997 67,846,683 2,657,824 70,504,507 1,262,407 69,242,100 2,095,638 3.12 1998 69,194,267 2,513,679 71,707,946 1,393,145 70,314,801 1,072,701 1.55 1999 72,525,051 2,728,990 75,254,041 1,554,486 73,699,555 3,384,754 4.81 2000 77,475,617 2,495,049 79,970,666 1,683,078 78,287,588 4,588,033 6.23 2001 83,329,641 2,936,004 86,265,645 1,637,667 84,627,978 6,340,390 8.10 2002 92,091,316 3,350,098 95,441,414 1,951,214 93,490,200 8,862,222 10.47 NOTE: (1) Article X[11A,added to California Constitution byifi RDpos on 13 in 1978,fixed the base for valuation of property subject to taxes at the full cash value which appeared on the Assessor's 1975-76 assessment roll. Thereafter,ftill cash value can be increased: a)to reflect annual inflation up to 2 percent; b)to reflect current market value at tinx of ownership change;and c)to reflect market value for new construction. 153 ....... ._....... ......... ......... ............................... ......... ......... ......... ........... .. .._.. .... COUNTY OF CONTRA COSTA GENERAL TAXES LEVIED AND COLLECMD LAST TEN FISCAL YEARS Fiscal Year Ended General Taxes General Taxes .lune 30, Levied(1) Collected(2) 1993 $ 613,933,210 S 613,933,210 1994 634,276,960 634,276,960 1995 652,943,650 652,943,650 1996 671,464,620 671,464,620 1997 692,421,000 692,421,000 1998 703,148,010 703,148,010 1999 736,995,550 736,995,550 2000 782,875,880 782,875,880 2001 846,279,780 846,279,780 2002 934,902,000 934,902,000 NOTES: (1) General taxes are calculated at 1 percent of total assessed value less local exemptions. - (2) General County taxes collected are the same as the amounts levied,because the County follows California's alternate method of apportionrnemt (the Teeter Plan). Under the Teeter Plan, all amounts levied are apportioned to the County and other taxing agencies regardless of whether they are collected in the current year or not. A Tax Losses Reserve Fund insures losses resulting when a property is sold for taxes, and the proceeds are insufficient to pay the outstanding amounts due. 154 COUNTY OF CONTRA COSTA SPECIAL ASSESSMENTS LEVIED AND COLLECTED LAST TEN FISCAL YEARS(1) Fiscal Year Ended Special Assessments Special Assessments June 30, Levied(2) Collected(3) 1995 $ 4,809,648 $ 4,809,648 1996 3,693,552 3,693,552 1997 3,232,099 3,232,099 1998 2,946,192 2,946,192 1999 3,155,064 3,155,064 2000 3,027,937 3,027,937 2001 3,030,800 3,030,800 2002 2,600,958 2,600,958 NOTES: (1) Data for this schedule are provided for years in which special assessment debt with government corrmtment has been reported separately in the CAFR Data are not available for years prior to fiscal year 19941995. (2) Special assessments are amounts levied to pay special assessment debt with govenunent commitment. (3) Special assessments collected are the same as the amounts levied,because the County follows California's alternate method of apportionment (the Teeter Plan). Under the Teeter Flan, all amounts levied are apportioned to the County and other taxing agencies regardless of whether they are collected in the current year or not. A Tax Losses Reserve Fund insures losses resulting when a property is sold for taxes,and the proceeds are insufficient to pay the outstanding amounts due. 155 COUNTY OF CONTRA COSTA PROPERTY TAX RATES(1) DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Fiscal Year County- County Local Ended wide Special Special Agency June 30, Rate Districts Districts Districts Schools Cities Total 1993 1.0000 .0011 .0071 .0345 .0153 .0192 1.0772 1994 1.0000 .0011 .0068 .0321 .0190 .0143 1.0733 1995 1.0000 .0010 .0071 .0314 .0206 .0147 1.0748 1996 1.0000 .0010 .0068 .0338 .0223 .0153 1.0792 1997 1.0000 .0010 .0064 .0309 .0263 .0148 1.0794 1998 1,0000 .0009 .0063 .0304 .0297 .0142 1.0815 1999 1.0000 .0008 .0061 .0262 .0342 .0139 1.0812 2000 1.0000 .0006 .0055 .0091 .0334 .0135 1.0621 2001 1.0000 .0006 .0047 .0067 .0318 .0131 1.0569 2002 1.0000 .0005 .0044 .0074 .0357 .0133 1.0613 NOTE: (1)In June, 1978, California voters approved Proposition 13 which restricted the taxing power of local government agencies. Individual agencies do not establish their own property tax rates,except for voter approved indebtedness. Instead,a countywide rate is levied with the proceeds distributed to all agencies according to formulas specified by the State legislature. The countywide rate is I percent of frill cash value($1 per$100 of taxable assessed valuation). The rates shown above are percentages of assessed valuation. 156 Kku6 N mAk k.w .uw;t gym... COUNTY OF CONTRA COSTA PROPERTY TAXES DIRECT AND ALL OVERLAPPING GovERNmENTS LAST TEN FISCAL.YEARS (In Thousands) Fiscal Year County Local Ended Special Special Redevelopment June 30, Courrty Districts Districts Schools Cities Agency Totals 1993 S 155,713 65,974 134,037 278,128 125,246 56,494 815,592 1994 101,541 75,565 143,162 335,343 127,425 58,774 841,810 1995 97,074 75,845 147,215 364,439 132,043 58,766 875,382 1996 100,025 78,752 157,323 374,506 136,030 59,137 905,773 1997 102,991 81,617 157,386 383,348 137,713 61,122 924,177 1998 103,519 84,097 169,578 390,822 134,065 62,598 944,679 1999 109,632 79,057 178,329 416,242 139,426 65,433 988,119 2000 115,829 81,995 176,174 444,126 144,964 71,203 1,034,291 2001 123,479 90,555 188,040 479,738 154,298 78,553 1,114,663 2002 134,411 98,966 213,930 535,689 168,551 93,530 1,245,077 NOTE: This schedule shoms the property tax levies by major group of taking agencies. 157 ....................................................... ............................................. ............................................... .... .. cc 0 m CA r) r- VI m 0, "D t 00 "t 00 cn C) �c (z &) 06 M C-i t— lc rl; cli 6 16 4 d C-i v V) CT rn V-) M 00 0, N 00 V) m r- w w r- V) O 0\ (A �o m tn � m m 'D N w In Tf r- CA t-- OIN Om "o O\ 0 r- kn r-- m 'n Nm N0T 0A 'n 4f r- c v c 1 � un n 0( C, C� zzr- w 'IT tic C\ Tt 00 t-- (01, It r- rq CA N N N N M rA — — — N . . . E. U 00 m �c W) M "o r ctz) r- 00 w) C', rq 0*, 00 00 IT Cy It Crrn r- V) ON VI 0� C) 00 W) .A' = >' "T — — 0 tn M — " " — O r-� r-� (3� o6 (3� r-� c4 kr� 4 - - - - - - - - - - - - - — — — — — — - - - - - U C> cd M ON coo N M CN C, 00 00 eT N to C) 00 te) r- Ch 00 -,r tt rq r- m kn 0 C> ke) r- Cn 00 C, It 0 m 110 CT 00 d �o M 00 M W) tn C'j oc� 0 O 0 w m kn �.c kn O Vi r, C-1 t-- 0, N O �o r- r-- W) "t 00 u NC, V) et 140 M V) 00 'IT V*) ct 0" #4'1 'et V) I= �c 110 ON t-- W) r- C, W) C� lc� ol� C� r-� r-,� r- W) 00 (n ') 1.0 C) - - - - — — — W— — — 0, kn C> 'n oo O00 M W a, 00 CN M oo V) �c 00 In Cll n n 00 4 m- CD- W) oo N M CT tn 14D V) V") t-- V) M (n M Ch 00 oe el) r- rn r- anitz ukn C'� "t '�j Cl� C� C� "I� lr� "- - M �cm Sc r- kn M cr, 't c) -,t m V' CT " o" — " r- x 0\ M r- oll C> M w m lS u — +.c CA " kn IT, m w �o 00 rA 69 0', C> r- r- t-- 00 w w w w 0o as 0a (7N C, a, C, ON cr, Cr oll oh C> O O 0, o" 0� F 0, a, 0, a, 0, CN 0, C, C� 0, C., C\ K:5 5 — — — — — — — — — — — — — — — — — — — — — — — rA .......... 158 CC>L1NTY OF CONTRA COSTA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA(1) LAST TEN FISCAL,YEARS Fiscal Ratio Of Net Year Assessed Value Gross Debt Service Net Bonded Debt Net Bonded Ended of Taxable Bonded Monies Borated To Assessed Debt Per June 30, Population Property Debt Available Debt Value Capita 1993 855,109 $ 61,393,320,000 $ 37,650,000 $ 39,997 $ 37,610.003 0.061 43.98 1994 868,600 63,427,697,000 374,392,000 1,233,000 373,159,000 0.588 429.61 1995 883,390 65,294,365,000 373,161,000 2,616,000 370,545,000 O567 419.46 1996 870,724 67,146,462,000 366,517,000 2,371,000 364,146,000 0.542 418.21 1997 879,206 69,242,100,000 360,830,000 2,513,000 358,317,000 0.517 407.55 1998 900,688 70,314,801,000 352,965,000 2,766,000 350,199,000 0.498 388.81 1999 916,403 73,699,555,000 317,695,000 2,711,000 314,984,000 0.427 343.72 2000 930,025 78,287,588,000 304,635,000 3,857,000 300,778,000 0.384 323.41 2001 972,103 84,627,978,000 299,270,000 10,656,000 288,614,000 0.341 296.90 2002 981,555 93,490,200,000 282,905,000 7,875,000 275,030,000 0.294 280.20 NOTE:(1) Does not include Public Financing Authority debt,Public Facilites Corporation debt,Redevelopment Agency debt nor special assessment debt with govemnient corm bnent. 159 COUNTY OF CONTRA COSTA PROPERTY VALUE,CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS New Dwelling Units(1) Construction Valuation Fiscal Year Ended Single Multiple Non- Bank June 30, Family Family Residential Residential Deposits(2) 1992 3,279 614 638,714,000 $ 207,099,000 $ 9,102,176,000 1993 3,026 451 590,000,000 183,156,000 11,462,467,000 1994 3,682 230 583,734,000 164,684,000 12,804,748,000 1995 3,137 618 619,685,000 190,443,000 13,193,883,000 1996 3,080 450 584,108,000 170,069,000 14,194,988,000 1997 3,105 381 582,793,000 180,794,000 15,210,082,000 1998 3,144 999 738,939,000 235,905,000 15,500,256,000 1999 3,909 504 852,256,000 234,752,000 17,746,965,000 2000 3,692 1,071 841,990,000 328,854,000 19,744,740,000 2001 4,144 776 921,370,000 340,959,000 19,042,604,000 Source(1) Economic Sciences Corp: 1991-2001 (2) Federal Deposit Insivance Corporation - Bank Deposits have been restated to include deposits from all institutions. NOTE: Information for the fiscal year ended June 30,2002 is not yet available. 160 Assessed Value of Taxable Property Residential Conwiercial Industrial Land Total $ 37,770,532,000 $ 7,656,657,000 $ 11,889,885,000 $ 1,105,112,000 $ 58,422,186,000 40,184,960,000 7,655,329,000 12,413,013,000 1,140,017,000 61,393,319,000 42,295,193,000 7,602,074,000 12,357,698,000 1,172,732,000 63,427,697,000 43,971,060,000 7,556,205,000 12,591,768,000 1,175,332,000 65,294,365,000 45,312,034,000 7,448,151,000 13,281,211,000 1,105,065,000 67,146,461,000 46,568,404,000 8,805,645,000 12,775,064,000 1,092,987,000 69,242,100,000 47,836,713,000 9,456,047,000 11,924,385,000 1,097,656,000 70,314,801,000 50,500,004,000 9,865,342,000 12,187,476,000 1,146,733,000 73,699,555,000 54,364,322,000 10,563,204,000 12,026,728,000 1,333,334,000 78,287,588,000 59,629,822,000 11,590,814,000 11,955,053,000 1,452,289,000 84,627,978,000 161 COUNTY OF CONTRA COSTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES(2) LAST TEN FISCAL YEARS Ratio Of Debt Fiscal Year Total Service To Ended Debt Total General Total General .lucre 30, Principal Interest Service Expenditures (1) Expenditures 1993 $ 320,000 $ 383,000 $ 703,000 $ 749,495,000 .0009 1994 614,000 6,021,000 6,635,000 810,360,000 .0082 1995 1,278,000 22,338,000 23,616,000 915,893,000 .0258 1996 4,000,000 22,435,000 26,435,000 891,699,000 .0296 1997 5,703,000 22,242,000 27,945,000 866,114,000 .0323 1998 7,475,000 21,952,000 29,427,000 889,926,000 .0331 1999 9,370,000 21,539,000 30,909,000 974,180,000 .0317 2000 11,325,000 20,952,000 32,277,000 1,024,951,000 .0315 2001 15,730,000 18,330,000 34,060,000 1,036,022,000 .0329 2002 16,365,000 19,439,000 35,804,000 1,228,560,000 .0291 NOTFS- (1)Includes all govenvnental fund types. (2)Does not include Public Financing Authority, Public Facilities Corporation, Redevelopment Agency nor Assessment District debt. 162 COUNTY OF CONTRA COSTA CONFUTATION OF LEGAL DEBT MARGIN YEAR ENDED JUNE 30,2002 (In Thousands) Assessed Value of Taxable Property $ 93,490,200 Debt Limit Five Percent of Assessed Value(1) $ 4,674,510 Amount of Debt Applicable to Debt Limit(2) Total Bonded Debt 344,005 Less: Assets in Debt Service Funds 7,875 Total Amount of Debt Applicable to Debt Limit 336,130 Legal Debt Margin $ 4,338,380 NOTES: (1) Section 29909 of the California Government Code limits General Obligation Bond indebtedness to five percent of the total assessed valuation of all taxable real and personal propertywithin the County. (2) Does not include Public Financing Authority,Public Facilities Corporation nor Assessment District debt. 163 COUNTY OF CONTRA COSTA COMPUTATION OF DIRF.,CI'AND OVERLAPPING DEBT -- -- Debt Applicable July 1,2002=" Percentage Amount DIRECT GENERAL FUND OBLIGATION DEBT: Contra Costa County General Fund Obligations 100.(W $ 334,355,000 t2} Contra Costa County Pension Obligations 100.000 281,425,000 TOTAL DIRECT DEBT 615,780,000 OVERLAPPING DEBT: Contra Costa.County Board of Education Cert.of Participation 100.000 2,720,000 Contra Costa County Mosquito Abatement Cert.of Participation 100.000 1,055,000 Alameda-Contra Costa Transit District Cert.of Participation 10.889 2,506,648 East Bay Mrmcipal Water District and Special District No. 1 49.589+6.018 5,411,977 Acalanes and Liberty Union High School Districts 100.000 129,142,569 Martinez Unified School District 100.000 41,348,920 Pittsburg Unified School District 100.000 28,585,000 Lafayette School District 100.000 28,200,000 San Ramon Valley Unified School District&Educ.Facility Corp. 100.000 29,755,000 SRV Unified School District 100.000 62,129,416 Other School Districts'Overlapping Tax and Assess?=t Debt .414-100.000 95,287,039 Antioch Unified School District Certificates of Participation 100.000 19,673,575 Other School Districts'General Fund Obligations 140-100.000 44,111,125 Cities'Overlapping Tax and Assessment Debt 100.000 16,154,977 City of Concord General Fund and Judgnient Obligations 100.000 42,095,000 City of Richmond General Fund Obligations 100.000 51,904,469 City of Richmond Pension Obligations 100.000 31,360,{)00 City ofAntioch General Furled Obligations 100.000 20,672,996 City of San Ramon General Fund Obligations 100.000 22,580,000 Other Cities`General Fund Obligations 100.000 38,120,000 East Bay Regional Park District 44.549 74,595,073 Hospital Authorities 100.000 2,555,000 Other Special Districts`Cert.of Participation 100.000 11,340,000 Other Special Districts'Overlapping Tax and Assessment Debt 100.000 1,480,000 Comnvnity Facilities District 100.000 266,420,000 1915 Act Assessment Bonds(Estimate) 100.000 461,352,000 West Contra Costa Unified School District 100.000 122,450,000 Mt.Diablo Unified School District 100.000 69,400,000 Contra Costa Community College District 100.000 50,0001000 TOTAL OVERLAPPING DEBT 1,772,405,784 (continued) 164 ................................................................................................................................................................................................................... ..................................................................... COUNTY OF CONTRA COSTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT TOTAL GROSS DIRECT AND OVERLAPPING DEBT 2,388,185,784 Less: San Ramon Unified School Dist.Certificates of Participation (Self-supporting from GIC from Bayerische Landesbank) 8,885,000 East Bay Municipal Utility District(100%Self-Supporting) 2,767,066 TOTAL NET DIRECT AND OVERLAPPING DEBT 2,376,533,718 2001 -2002 Assessed Value of Taxable Property $ 93,490,200,000 Less: Redevelopment Increments 8,835,385,357 Adjusted Assessed Valuation $ 84,654,814,643 Population 981,555 Ratio to Full Cash Per Value(%) Capita Direct Debt(Includes County Lease Revenue Obligations) 0.73 $ 627 Total Gross Direct and Overlapping Debt 2.82 2,433 Total Net Direct and Overlapping Debt 2.81 2,421 (1) Source: The offical statement, County of Contra Costa, California 2002-2003 Tax and Revenue Anticipation Notes, Series A. Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. (2) Excludes the Notes and the $25,440,000 2002 Series B Lease Revenue Refunding Bonds delivered by the County on September 5,2002, (concluded) 165 .......... ................................... ................................ .... ............. . . ..._.. COUNTY OF CONTRA COSTA TEN PRINCIPAL TAXPAYERS YEAR ENDED JUNE 30,2002 Percent Of Total 2001 -2002 Secured Secured Assessed Assessed Taxpayer Type of Business Valuation Valuation Chevron USA Petroleum Refining $ 2,140,798,550 2.29 % Equilon Enterprise Petroleum Refining 1,331,376,042 1.42 Tosco Corporation Petroleum Refining 966,368,816 1.03 Pacific Bell Utility 704,468,787 0.75 Pacific Gras&Electric Utility 703,265,721 0.75 Miirant Delta Utility 558,875,128 0.60 GMAC Con nercial Real Estate Financing 413,656,815 0.44 Seeno&Associates Construction 366,611,669 0.39 USS Pasco Steel Production 333,729,421 0.36 ORECM Escrow Real Estate Financing 268,001,606 0.29 $ 7,787,152,555 8.32 % 166 µ: :, COUNTY OF CONTRA COSTA DEMOGRAPHICS-POPULATION Date of Special Incor- Census Jurisdiction poration 1960 1970 1975 1980 1990 2000 2002 Antioch 2/2/1872 17,305 28,060 33,215 43,559 61,379 84,485 96,735 Brentwood 1/1/1948 2,186 2,649 3,662 4,434 7,515 23,090 29,641 Clayton 3/18/1964 1,385 1,790 4,325 7,219 11,373 10,978 Concord 2/2/1905 36,208 85,164 94,673 103,251 110,640 114,932 123,935 Danville 7/1/1982 28,675 40,484 43,003 El Cerrito 8/20/1917 25,437 25,190 22,950 22,731 22,684 23,874 23,511 Hercules 12/15/1900 310 252 121 5,963 16,554 19,552 20,140 _. Lafayette 7/22/1968 20,484 19,628 20,879 24,482 24,360 24,411 Martinez 4/1/1876 9,604 16,506 18,702 22,582 33,510 37,034 36,715 Morafa 11/13/1974 14,418 15,014 14,780 17,006 16,507 Oakley 7/1/1999 26,157 Orinda 7/1/1985 16,704 17,436 17,833 Pinole 6/25/1903 6,064 13,266 15,337 14,253 17,147 18,657 19,429 Pittsburg 6/22/1903 19,062 20,651 24,347 33,034 47,190 54,383 59,910 Pleasant Flill 11/14/1961 24,610 25,398 25,124 31,115 33,169 33,360 Richmond 8/7/1905 71,584 79,043 70,126 74,676 83,718 94,369 101,076 San Pablo 4/26/1948 19,687 21,461 19,392 19,750 24,709 26,827 30,912 San Ramon 7/1/1983 34,170 45,704 46,237 Walnut Creek 10/19/1914 9,903 39,844 46,034 53,643 60,542 64,710 65,883 Totallncocporated 217,350 378,565 409,793 463,218 642,733 751,445 826,373 Unincorporated 191,680 177,240 173,036 194,034 154,548 178,580 155,182 TOTAL COUNTY 409,030 555,805 582,829 657,252 797,281 930,025 981,555 Source: 1950-1990 U.S.Census;2001-2002 California State Department of Finance. 167 ................................................................................... ........................ COUNTY OF CONTRA COSTA NUSCEL.LANEOUS STATISTICS GEOGRAPHICAL LOCATION: Contra Costa County is located near San Francisco in the Bay Area. It is bordered by San Francisco Bay and San Pablo Bay on the West,by Suisun Bay and the Sacramento and San Joaquin Rivers on the North, by the delta country of San Joaquin County on the East and by Alameda County on the South. ALTITUDE: Sea level to 3,849 feet AREA OF COUNTY: 732.6 square miles of land and 73.3 square Wyles of water. COUNTY SEAT: Martinez,California FORM OF GOVERNMENT: General Law County,governed by a five member Board of Supervisors. _._.... Contra Costa County is one of the original 27 counties established when California became a state in 1850. MARCH 2002 PRIMARY ELECTION REGISTERED VOTERS 478,754 NUMBER VOTING 187,496 PERCENT VOTING 39.16 ROADS: 741.03 miles of County maintained streets and roads in the unincorporated areas. COUNTY EMPLOYEES NUMBER OF AT JUNE 30: PERCENT OF EMPLOYEES NUMBER OF INCREASE PER THOUSAND YEAR EMPLOYEES* (DECREASE) OF POPULATION 1998 7,215 3.5 8.0 1999 7,749 7.4 8.5 2000 8,321 7.4 89 2001 8,654 4.0 8.9 2002 8,788 1.5 9.0 *Full-time equivalents,authorized and funded Does not include employees of the courts or independent fire districts. Source:County Adrninistrator. 168