Comprehensive annual financial report: Maricopa County, Phoenix, Arizona for the fiscal year ended July 1, 1995 - June 30, 1996 |
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Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 1996
Maricopa County Phoenix, Arizona
Board of Supervisors
Tom Rawles Member
Don Stapley Member
Ed King
Chairman
Betsey Bayless Member
Mary Rose Garrido Wilcox Member
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Comprehensive Annual Financial Report
Maricopa County Phoenix, Arizona
For The Fiscal Year July 1, 1995 to June 30, 1996
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Prepared By Department of Finance Deborah S. Larson, Chief Financial Officer
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INTROD UCTOR Y S E C T I O N
Table Of Contents Listing Of Maricopa County Officials Organizational Charts Letter Of Transmittal Certificate Of Achievement For Excellence In Financial Reporting
Comprehensive Annual Financial Report Table of Contents
For the Fiscal Year Ended June 30, 1996
Page
Introductory Section
Table of Contents Maricopa County Officials Organizational Charts Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting
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V
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XXV
Financial Section
Independent Auditors' Report General Purpose Financial Statements: Combined Balance Sheet - All Fund Types And Account Groups Combined Statement Of Revenues, Expenditures And Changes In Fund Balances - All Governmental Fund Types And Expendable Trust Fund Combined Statement Of Revenues, Expenditures And Changes In Fund Balances - Budget And Actual - General, Special Revenue, Debt Service And Capital Projects Funds Combined Statement Of Revenues, Expenses And Changes In Fund Equity - All Proprietary Fund Types Combined Statement Of Cash Flows - All Proprietary Fund Types Notes to the Financial Statements: Note 1 Summary Of Significant Accounting Policies Note 2 Reporting Changes Note 3 Beginning Fund Balances/Equities Restated Note 4 Individual Fund Deficits Note 5 Cash And Investments Note 6 Accounts Receivable Note 7 Property Taxes Receivable Note 8 Due From Other Governmental Units Note 9 General Fixed Assets Note 10 Proprietary Fund Property, Plant And Equipment Note 11 Leases Note 12 Long-Term Obligations Note 13 Compensated Absences Note 14 Line Of Credit Note And Tax Anticipation Notes Note 15 Employee Retirement Plans Note 16 Deferred Compensation Plan Note 17 Contingent Liabilities Note 18 Interfund Receivables, Payables, Transfers Note 19 Risk Management Note 20 Disproportionate Share Settlement Note 21 Segment Information On Enterprise Funds Note 22 Patient Service Revenue Note 23 Construction And Other Significant Commitments Note 24 Contributed Capital Note 25 Excess Of Expenditures Over Budget In Individual Funds Note 26 Budgetary Basis Of Accounting Note 27 Subsequent Events Note 28 Municipal Landfill Closure And Postclosure Care Costs
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10 12 13 17 22 23 23 23 25 25 25 25 26 27 28 33 33 34 40 40 41 42 43 43 44 44 45 45 46 46 47
Table of Contents (Continued)
For the Fiscal Y e a r E n d e d J u n e 30, 1996 Page Note 29 Note 30 Other Post-Employment Benefits Residual Equity Transfers 48 49
Combining, Individual Fund And Account Group Statements And Schedules General Fund: Schedule Of Expenditures - Budget And Actual Special Revenue Funds: Combining Balance Sheet Combining Statement Of Revenues, Expenditures And Changes In Fund Balances Statement Of Revenues, Expenditures And Changes In Fund Balances Budget And Actual: Grants And Contracts Auto License Flood Control Fund Transportation Fund Air Pollution Fund Rabies/Animal Control Fund Public Health Fund Street Lighting Fund Library Fund Stadium District Fund Lake Pleasant Recreation Housing Authority Sheriff's Inmate Canteen Document Storage Probation Services Juvenile Probation Recorder's Surcharge Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures And Changes In Fund Balances Statement Of Revenues, Expenditures And Changes In Fund Balance Budget and Actual: General Obligation Fund Special Assessment Fund Housing Authority Stadium District Capital Projects Funds: Combining Balance Sheet Combining Statement Of Revenues, Expenditures And Changes In Fund Balances Statement Of Revenues, Expenditures And Changes In Fund Balance Budget And Actual: Bond Funds Major League Stadium Intergovernmental Funds Schedule Of Capital Projects - Budget And Actual
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58 62 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82
85 86 87 88 89 90
93 94 95 96 97 98
Table of Contents (Continued)
For t h e Fiscal Y e a r E n d e d J u n e 30, 1996 Page
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Enterprise Funds:
Combining Balance Sheet Combining Statement Of Revenues, Expenses And Changes In Fund Equity Combining Statement Of Cash Flows Schedule Of Operating Expenses By Department - Medical Center 106 108 110 112
Internal Service Funds:
Combining Balance Sheet Combining Statement Of Revenues, Expenses And Changes In Fund Equity Combining Statement Of Cash Flows 116 118 120
Trust And Agency Funds:
Combining Balance Sheet Combining Statement Of Changes In Assets And Liabilities 126 128
General Fixed Assets Account Group:
Schedule Of General Fixed Assets By Function And Activity Schedule Of Changes In General Fixed Assets By Function And Activity 133 135
General Long Term Debt Account Group:
Comparative Balance Sheets 139
Statistical Section
General Revenue By Source - Last Ten Fiscal Years Schedule Of Expenditures/Expenses By Function - Last Ten Fiscal Years Tax Revenues By Source - Last Ten Fiscal Years Property Tax Levies And Collections - Last Ten Fiscal Years Property Tax Levies - All Jurisdictions - Last Ten Fiscal Years Assessed Value And Current Market Value Of All Taxable Property - Last Ten Fiscal Years Property Value, Construction And Bank Deposits - Last Ten Fiscal Years Property Tax Rates And Tax Levies - Direct And Overlapping Governments - All County Governments - Last Ten Fiscal Years Property Tax Rates And Tax Levies - Direct And Overlapping Governments - County Controlled Governments - Last Ten Fiscal Years Comparative Ratio Of Bonded Debt To Assessed Values And Bonded Debt Per Capita Last Ten Fiscal Years Computation Of Direct And Overlapping General Obligation Bonded Debt Statement Of Legal Debt Limit Ratio Of Annual General Obligation Debt Service Requirements - Last Ten Fiscal Years Revenue Bond Coverage - Maricopa County Stadium District Special Assessment Billings And Collections - Last Ten Fiscal Years Principal Taxpayers Schedule Of Insurance In Force Salaries And Blanket Bond Of Elected County Officials Miscellaneous Statistical Data 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161
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Maricopa C o u n t y Officials
BOARD OF SUPERVISORS Ed King, Chairman, District 4 Tom Rawles, District 1 Don Stapley, District 2 Betsey Bayless, District 3 Mary Rose Garrido Wilcox, District 5
COUNTY ADMINISTRATIVE OFFICER David R. Smith
CHIEF FINANCIAL OFFICER Deborah S. Larson
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I Officeofthe CountyAdministrativeOfficer ~~~ FinancialResources Management
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October 31, 1996 The Honorable Board of Supervisors Maricopa County County Administration Building 301 W. Jefferson Street Phoenix, AZ 85003
We are pleased to submit to you, in accordance with Arizona Revised Statutes, the Comprehensive Annual Financial Report of Maricopa County, prepared by the Department of Finance, for the fiscal year ended June 30, 1996. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the management of Maricopa County. We believe the data, as presented, is accurate in all material aspects and that it is presented in a manner designed to openly disclose the financial position and results of operations of the various funds and account groups of Maricopa County. All disclosures necessary to enable the reader to gain an understanding of Maricopa County's financial activities have been included. The financial report is presented in three main sections: The Introductory Section includes the table of contents, a list of principal Maricopa County officials, the organizational chart, this transmittal letter, and the Certificate of Achievement for Excellence in Financial Reporting. This section is intended to give the reader of the financial report some basic background about the governmental unit as a whole. The Financial Section includes the opinion of Maricopa County's independent auditor, the general purpose financial statements, including the notes (these materials provide an overview of the County's financial position and results of operations), the combining statements by fund type, the individual fund statements and other schedules that provide additional detailed information relative to the general purpose financial statements. The Statistical Section includes statistical tables and charts that present various financial, economic, social and demographic data about Maricopa County over the last ten years.
M A R I C O P A COUNTY 301 W. Jefferson, Suite 960 * Phoenix, Arizona 85003-2278. (602) 506-3561 4, (Fax) 506-4451
The County is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A-128, Audits of State and Local Governments. Due to the size and complexity of the County's financial systems, the Single Audit report is issued separately from the Comprehensive Annual Financial Report. Copies are available upon request. The financial reporting entity includes all the funds and account groups of the primary government (Maricopa County), as well as its component units. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are, in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, the Maricopa County Flood Control District, Stadium District, Library District and various improvement districts are reported as part of the governmental fund type of the primary government. There are various school districts, irrigation districts, and fire districts within Maricopa County governed by independently elected boards. The financial statements of such districts are not included in this report except to reflect amounts held in an agency capacity by the County Treasurer. Maricopa County offers a wide variety of governmental services. Health care services are provided by the Health Care Systems which include the departments of Maricopa Medical Center, Long Term Care and Maricopa County Health Plan and numerous Primary Care Centers. Environmental quality and community services are provided by the departments of Environmental Services, Social Services, Library, Community Health, Community Development, Public Health, Solid Waste Management, and Parks and Recreation. Transportation and development services are provided by the departments of Planning and Development, Transportation, and Flood Control. Justice and law enforcement services are provided by the departments of Adult Probation, Superior Court, Juvenile Court, Justice Court, Public Defender, Public Fiduciary, Clerk of the Superior Court, Medical Examiner, Sheriff, County Attorney, Constable, and Correctional Health. Maricopa County also provides a full range of general government and administrative support services.
ECONOMIC CONDITION AND OUTLOOK
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Maricopa County is Arizona's most populous county. It is located in the central portion of the State within a 9,226 square mile region and is comprised of desert terrain, low mountains and man-made lakes. Its economy is based on high technology, manufacturing, light manufacturing and commercial activities (including construction and trade), tourism, government, and agriculture. Maricopa County's economic indicators have continued to improve over the past five years. The overall value of building permits increased 117 percent from 1991 to 1995, (from $2.5 billion to $5.4 billion, respectively) and 11 percent from 1994 to 1995. The most dramatic change from 1994 to 1995 occurred in the value of industrial building permits with a growth of 185 percent to $413,835.
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The County's population has increased 20 percent from 1990 to 1995. The 1995 mid-decade U.S. Census tabulated a population of 2,551,765. While this growth has a positive impact, it also presents significant challenges to the County: ? ? Health Care mandates increase indigent health costs. Increased construction activity requires additional resources in the Assessor's and Recorder's offices to update the tax roll. Increased population adds to the workload of the Sheriff's office, the County Attorney, and the Court Institution.
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The County anticipates that the combination of increasing needs for service, potential cutbacks at the State and Federal levels, and stable assessed valuations will continue to require strong budgetary and financial controls to maximize County resources for its citizens. Stated simply, resources will become even more scarce, and tough decisions will continue to loom on the horizon, sometimes without the luxuries of time and thorough contemplation.
MAJOR INITIA"I IVES
For the Current Year...
The Board of Supervisors and executive staff met together in a strategic planning session in October 1995, to define the County's mission, vision, tactical objectives and strategic issues. This process served as the basis for updating the County's Business Plan, goals, and performance targets. The County's Tax Anticipation Notes, Series 1995, were issued in the amount of $40 million one-third the size of the 1994 note issue. Moody's Investors Service assigned its highest quality short term rating, MIG 1, an upgrade from the MIG 2 assigned in 1994. Standard & Poor's Corporation maintained an SP-1 rating, but revised its long term outlook to "stable" from "negative" in light of improved financial operations and controls. The Maricopa County Auto License Facilities were sold to the Arizona Department of Transportation, Motor Vehicle Division on July 1, 1995, for $6.9 million. The County received the initial payment of $5.0 million in July 1995. The second and final payment of $1.9 million was received on July 15, 1996. The STAR system, an automated telephone center, was developed by the County Treasurer, Recorder, and Assessor, in conjunction with the Board of Supervisors. This STAR system will provide greater phone accessibility to the citizenry and improved customer service through a combination of automated systems and "live" trained call center representatives. The STAR call center consolidates the telephone functions of the Treasurer, Assessor, Recorder, Elections and the main County switchboard.
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The County Elections Department implemented a new scan vote system which streamlines the voting process, greatly reduces the opportunity for overvoting, effectively identifies write-in votes, and tallies the votes. The totals are then transmitted to election headquarters shortly after the polls close. The new scan vote system was successfully utilized during the September 1996, primary election. The Finance Department has completed a year of energetic concentration on the issue of Fixed Assets. The following resulted: ? Distribution of a comprehensive Fixed Asset Property Manual which included: Documented procedures. Process for monthly reconciliations and certifications. Process of annual audits on all departments to ensure complaince with the Property Manual. Capitalization levels raised. Procedures to process fixed asset information electronically. Implementation of Fixed Asset Tags with Bar Codes. The Department of Finance is currently reviewing vendor information associated with Bar Code scanners and software to streamline the inventory/tracking process.
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In October 1995, the Board of Supervisors approved a five-year business plan for the Solid Waste Management Department. This plan was developed in response to projections of significant waste flow reduction to the County landfills due to the developing market, industry dynamics and landfill closure costs. In summary, the plan required the sale of the Northwest Regional Landfill, which occurred on September 13, 1996 for $17,510,000. The Northwest Regional Landfill was the newest, best documented, and most valuable County landfill. The proceeds of that sale will be used to gradually close the five remaining landfills within the next five years. On January 9, 1996, Maricopa County voters authorized proceeding with the next step in the charter government process, and elected a 15 member Citizen Charter Committee to draft a proposed charter for Maricopa County government. The charter will lay out the structure, powers, and finances of Maricopa County. Voters will approve or reject the charter at the November 1996 General Election. On March 21, 1996, the Board of Supervisors approved entering into negotiations with Healthcare Providers, Inc. (HPI) for the proposed transition of Maricopa County's Health System. This transition would involve a long-term lease and operating agreement. On September 30, 1996, the Maricopa County Board of Supervisors approved the final phase of negotiations that would lead to the transition of Maricopa Health System to management by Healthcare Providers, Inc. (HPI). Through a joint effort by the Department of Planning and Infrastructure Development and the Department of Transportation, a comprehensive plan is being developed to guide growth and infrastructure development in unincorporated areas of the County. This comprehensive plan will provide direction to the Planning & Zoning Commission and the Board of Supervisors concerning that vast unincorporated area. To date, a series of open community workshops have been conducted which has resulted in the definition of two Comprehensive Land Use and Transportation alternatives. These alternatives are continuing to be discussed and reviewed
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by utilizing an open community workshop forum. It is anticipated that the final plan will be presented for public comment in the last series of workshops scheduled for the second quarter of calendar year 1997.
For the Future...
A major goal for fiscal year 1996-97 is to begin to investigate the next generation software and hardware for financial systems. A multi-disciplinary team will be established which will begin to research the departmental expectations and technological improvement needs. It is expected that the new technology will be client server based and will have much greater reporting flexibility. The system should also integrate budgeting, financing processes, human resources and purchasing within one package. The arrival of the year 2000 poses challenges for many counties, municipalities, states and corporations as many software packages do not support dating records for the new century. This is a critical issue for both the Human Resource Management System (HRMS) and the Local Governmental Financial System (LGFS). Maricopa County has developed a plan of action to upgrade the current systems to support the new century issue. Forecasts indicate that the Maricopa County Jail System's average daily population will continue to increase. Many program enhancements have been implemented but the system continues to realize the following pressures: ? ? ? ? ? staff to inmate ratios are higher than standards; increased threat to safety for staff and inmates; facilities deteriorate faster when overcrowded; operating costs are higher for on-call and overtime staff; greater staff turnover.
In addition to the pressures associated with the adult jail facilities, the Juvenile Detention Facilities are experiencing many of the same pressures and issues. The County will proceed to explore the feasibility of and community support for various approaches to alleviate the increasing systemic pressures. Privatization is an instrumental component in achieving Countywide fiscal goals. Outsourcing alternatives enable departments to achieve quality service levels, while maintaining productivity and economic efficiencies. To survive the current financial environment of shrinking resources, Maricopa County will continue to seek to optimize service levels and to innovate productivity improvements. The annual identification and priortization of services that are ideal for privatization is conducted during the budget process and as requested by County management. Some of the services currently in the process of competitive bidding or under consideration for outsourcing include:
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Acquisition and Management of Maricopa County Health System Rabies/Animal Control Services Reprographics Facilities Management Employee Assistance Program Herbicide Spraying/Weed Abatement
FINANCIAL INFORMATION
Internal Controls The management of Maricopa County is responsible for establishing and maintaining an internal control structure designed to ensure that assets of the government are protected from loss, theft, or misuse. We are also responsible for ensuring that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP). The internal control structure is 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 valuation of costs and benefits requires estimates and judgements by management. We believe that Maricopa County's accounting controls adequately safeguard assets and provide reasonable assurance that financial transactions are properly recorded. Single Audit Maricopa County receives both federal and state financial assistance, and is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is periodically evaluated by management and the accounting staff. As part of the government's single audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal and state financial assistance programs, and County compliance with applicable laws and regulations. The Federal Single Audit Report is issued separately. Budgetary Controls In addition to the internal controls noted previously, the County maintains budgetary controls. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Supervisors. The County's budget process provides for input from department administrators, top management, elected officials, and the public in developing revenue and expenditure projections and determining the County's programs and services for the coming year.
The County's fiscal year begins on July I st and ends the following June 3 0 th. Each fiscal year's
process starts in early December with an analysis of revenue and expenditure data from the first half of the current fiscal year. A preliminary forecast of economic conditions is made for the next fiscal year. A preliminary estimate of maximum expenditure levels for the County as a whole is made which is the basis for the development of budget policies that will guide the departmental budget process. Budgets are prepared and submitted by County departments
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for review by the Office of Management and Budget (OMB). OMB submits a total recommended budget to the Board of Supervisors in May as the County's Tentative Budget. The Tentative Budget, which sets the maximum level of revenues and expenditures, is then approved by the Board. The final adopted budget is approved by late June, followed by the setting of the property tax rates by the third Monday in August. Maricopa County adopts annual budgets for all Governmental Fund Types and Proprietary Fund Types. Budgets for Capital Improvement Projects are adopted on a project basis. The level of Budgetary Control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level and is aided during the fiscal year by the use of encumbrances of estimated purchases. Open encumbrances lapse at yearend and are rebudgeted as needed in the next fiscal year.
General Government Revenues
Revenues for the recurring operations of the County (the General Fund, Special Revenue Funds, and Debt Service Funds) for the fiscal year ended June 30, 1996, totaled $820.6 (expressed in millions), a 3.2 percent increase from the preceding year. Capital Projects Funds are not considered part of General Government recurring operations. The following is a summary of the governmental fund revenues:
PRIMARY GOVERNMENT REVENUE SUMMARY
Revenue Source Taxes Licenses & Permits Intergovemmental Charges for Services Fines & Forfeits Miscellaneous Total $ 1995-96 Amount IMillions) 234.6 12.4 478.7 47.6 9.9 37.4 820.6 1994-95 Amount IMillions) $ 225.4 14.9 461.2 46.1 8.5 39.3 795.4 Variance IMillions) $ 9.2 (2.5) 17.5 1.5 1.4 (1.9) 25.2
% 28.6 1.5 58.3 5,8 1.2 4.6 100.0
% 28.3 1.9 58.0 5.8 1.1 4.9 100.0
$
$
$
Taxes
Assessed Valuations: The primary valuation in 1995 increased by 1.5 percent to $13.5 billion and the secondary valuation increased by 4.4 percent to $14.1 billion when compared to the previous year. The secondary valuation is a more accurate indicator of market conditions since increases in the primary valuation are controlled by State Statute.
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Property Tax Collections: Current tax collections were 98.3 percent of the levy, 2.9 percent higher than the previous year. Total property tax collections were $215.1 million, approximately $13.9 million more than the previous year, due to an increase of $8.2 million in the levy. Historically, collections against the year's levy have been approximately 94.0 percent, based on the last 10 years. The balance of the taxes revenue source is comprised of in lieu taxes and penalties and interest on past due taxes. In lieu taxes include the Salt River Project contributions and in lieu taxes from various governmental entities. In lieu taxes decreased $100,000 from the previous year to $10.0 million. Penalties and interest decreased $5.2 million from the previous year to $9.5 million.
Licenses & Permits
Fees levied for licenses and permits as authorized by Arizona Revised Statutes include environmental permits ($3.7 million), air pollution permits ($2.1 million), animal licenses ($2.7 million), building safety permits ($2.0 million) and others. Licenses and permits decreased by $2.5 million compared to the previous year due to reduced auto registration fees ($2.9 million) resulting from the sale of the Auto License Division operations to the State.
Intergovernmental
Major items included in intergovernmental (State-shared) revenues during fiscal year 1995-96 are sales tax ($231.0 million), vehicle license tax ($53.4 million) and highway user revenue ($70.1 million) received from the State of Arizona, and Federal grants. The major factors driving the increases in these intergovernmental revenues ($17.5 million) are the population increases within the State of Arizona and Maricopa County. Sales Tax: The State collects transaction privilege taxes (sales tax) on nearly 20 types of business activities. A portion of each of these taxes is allocated to a pool for distribution to cities, counties and the State. Of this pool, 40.5 percent is allocated to Arizona counties. Half of the amount earmarked for counties is allocated based upon assessed valuation, and half is allocated based upon location of actual sales tax receipts. Sales tax increased 7.4 percent over the previous year. Vehicle License Tax: The State assesses vehicle license tax annually on all vehicles. The County distributes 50 percent of vehicle license tax received from the State to incorporated cities and towns and retains the remaining amount in the General Fund. The distribution to the cities and towns is based upon relative population. Vehicle license tax increased 0.1 percent over the previous fiscal year.
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Highway User Fee: The State levies a gas (highway user) tax on motor fuel sold within the State. The primary purpose of the gas tax is to fund the construction and maintenance of streets and highways. Of the gas tax revenues collected, 20 percent is allocated to counties based upon fuel sales and estimated consumption. Highway user revenue increased 8.8 percent over fiscal year 1994-95.
Charges for Services
County customers are charged for service provided based upon the cost of providing the service. In fiscal year 1995-96, major items in this category included court fees ($4.7 million), recording fees ($5.3 million), record automation surcharge ($1.7 million), rental car surcharge ($4.9 million), street lighting assessments ($2.7 million) and probation service fees ($2.8 million). The total fiscal year 1995-96 charges for services were $47.6 million or $1.5 million higher than the prior year.
Fines & Forfeits
The County assesses fines and forfeits in areas in which it is responsible for enforcing laws and codes. Citations are issued by the Sheriff and Air Pollution Departments. Fiscal year 1995-96 experienced a $1.4 million increase over the previous year mainly due to an $800,000 increase in court fines.
Miscellaneous
Major items included in the $37.4 million of miscellaneous revenues include interest income of $12.4 million, a refund from Arizona Long Term Care System of $5.3 million, sale of the Auto License Facilities to the State of Arizona for an initial payment of $5.0 million (with a secondary payment of $1.9 million that was received on July 15, 1996), the Lake Pleasant Settlement of $3.3 million and Flood Control land sales of $2.8 million. The decrease of $1.9 million versus the previous year is mainly the result of reduced Flood Control land sales of $1.5 million.
General Government Expenditures
Expenditures for the recurring operations of the County (the General Fund, Special Revenue Funds, and Debt Service Funds) for the fiscal year ended June 30, 1996, totaled $745.1 million, a 21.1 percent increase over the preceding year. Capital Projects Funds are not considered part of General Government recurring operations. Governmental fund expenditures a r e summarized on the following page:
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PRIMARY GOVERNMENT EXPENDITURE SUMMARY
1995-96 Amount (Millions) $ 84.4 285.0 42.2 292.0 11.7 1.1 28.7 745.1 1994?95 Amount IMillions) $ 161.1 310.8 42.1 68.1 17.6 1.1 14.3 615.1 Variance IMillions) $ (76.7) (25.8) 0.I 223.9 (5.9) 0.0 14.4 130.0
Function General Government Public Safety Highways & Streets Health, Welfare & Sanitation Culture & Recreation Education Debt Service Total
% 1t .3 38.2 5.7 39.2 1.6 0.1 3.9 100.0
% 26.2 50.5 6.8 11.1 2.9 0.2 2.3 100.0
$
$
$
General Government
The decrease in expenditures in General Government ($76.7 million) is mainly due to the reclassification of the County's Arizona Long Term Care System subsidy ($58.1 million in fiscal year 1994-95) and the Arizona Health Care Cost Containment System payment ($43.0 million in fiscal year 1994-95) from General Government to Health, Welfare and Sanitation. These reductions were partially offset by increases in expenses related to information systems ($3.8 million) and facilities management ($15.4 million) due to a policy change in which these expenditures are not charged to other General Fund functions in fiscal year 1995-96.
Public Safety
The decrease in Public Safety of $25.8 million is due to reductions in a number of the departments within Public Safety but most noticeably in the Sheriff's Office ($12.9 million) and the County Attorney's Office ($7.4 million). These reductions are mainly due to lower information systems and facilities management expenses: The expenses are lower because the costs of those services were charged directly to General Government instead of Public Safety for fiscal year 1995-96. During fiscal year 199495, those expenses were charged to Public Safety agencies. This is the result of a policy change in which the expenditures are simply accounted for in General Government and are not the consequence of an overall decrease in the Public Safety service level provided to the public.
Highways & Streets
The increase in Highways and Streets of $100,000 occurred entirely within the Transportation Fund.
Health I Welfare & Sanitation
Expenditures in Health, Welfare and Sanitation increased by $223.9 million versus the preceding year. This increase occurred as the result of the following reclassifications:
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the Arizona Long Term Care System payment of $76.6 million to the State and the Arizona Health Care Cost Containment System payment of $38.6 million to the State were reclassified from General Government to Health, Welfare and Sanitation; the Disproportionate share payment of $62.1 million, the Medical Assistance Program ($19.1 million) and the Seriously Mentally III (SMI) payments of $25.2 million were reclassified out of the County Responsible Fund to Health, Welfare and Sanitation.
Culture & Recreation
The decrease of $5.9 million in Culture and Recreation versus prior year occurred primarily as a result of the reclassification of the Major League Stadium Fund out of the Special Revenue Fund Group into the Capital Projects Fund Group ($7.6 million). This was partially offset by an increase in the Stadium District ($3.0 million) due mainly to the grant to the City of Mesa for the construction of a new stadium and practice facilities for the Chicago Cubs baseball team.
Debt Service
The increase of $14.4 million in Debt Service expenditures compared to the previous year is due to an increase in principal payments on the General Obligation Bonds ($15.0 million). The increase is due to the advance refunding of the outstanding Maricopa County General Obligation Bonds. This refunding allowed the County to restructure its General Obligation Bond payments so that no principal payments were required in fiscal year 1994-95.
General Government Fund Balance
Fund balances reflect the excess of revenues over expenditures and other changes in financial reserves. Unencumbered appropriations lapse at the end of the fiscal year and revert to unreserved fund balance. A comparison of fund balances for budgeted governmental funds is as follows:
PRIMARY GOVERNMENT FUND BALANCE SUMMARY
Fund General Fund Special Revenue Funds Debt Service Funds $
6/30/96 (Millions) 60.9 88.1 0.6 $
6/30/95 (Millions) 19.3 90.1 2.4 $
Variance (Millions) 41.6 (2.0) (1.8)
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General Fund The fund balance of the General Fund increased by $41.6 million to $60.9 million. This increase was the result of the deficiency of revenues over expenditures of $2.9 million, which was offset by net transfers of $24.2 million, proceeds from capital leases of $8.7 million and an equity transfer from County Responsible Fund (an Enterprise Fund) of $11.7 million. Special Revenue Funds The fund balance of the Special Revenue Funds decreased by $2.0 million to $88.1 million. Major changes occurred in the Library Fund (decrease of $3.8 million), Public Health (increase of $3.6 million) and Auto License (decrease of $3.1 million). The Library Fund 1995 levy was decreased, resulting in a decrease in tax revenue of $3.9 million. Public Health intergovernmental revenue increased by $4.4 million. The Auto License Division was sold to the State of Arizona, resulting in the elimination of the Auto License fund balance of $3.1 million. Debt Service Funds The fund balance of the Debt Service Funds decreased by $1.8 million to $0.6 million. The decrease was due to a $3.0 million deficiency of revenues over expenditures, partially offset by the receipt of a $1.1 million residual equity transfer from the Capital Projects Funds. The Residual Equity transfer was for the repayment of funds which were designated for specific capital projects but will not be used. Capital Projects Funds The Capital Projects Funds account for resources used for the acquisition or construction of major capital facilities other than those financed by Enterprise Funds. Completed projects and uncompleted construction-in-progress at fiscal year-end, except for infrastructure fixed assets, are capitalized in the General Fixed Assets Account Group. During fiscal year 1995-96 expenditures in the Capital Projects Funds totaled $90.5 million, compared with fiscal year 1994-95 expenditures of $60.7 million. The three funds in the Capital Projects Fund Group are as follows: Major League Baseball Stadium expenditures account for 87 percent of capital projects expenditures. The expenditures are financed through the .25 percent stadium sales tax and are used for the construction of the Arizona Diamondbacks Stadium. Bond Funds which are financed through proceeds from the General Obligation Bond Issue account for approximately 13 percent of the capital projects expenditures. Major projects financed during the fiscal year were the Lake Pleasant Outdoor Recreation Center, Sheriff's convict tents, Health Systems life safety issue, Salt River Bridge and various computer projects.
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Intergovernmental Funds are funds transferred from other funds to finance capital projects. Transfers for the fiscal year totaled $2.0 million. No expenditures occurred during fiscal year 1995-96.
Proprietary Operations
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 for the costs of providing services to the general public be financed primarily through user charges. The County's five Enterprise Funds provide health care and solid waste disposal services. The health care funds receive a subsidy from the General Fund which is summarized below:
PUBLIC HEALTH EliminateCurrentYearDeficit PublicHealthSubsidy HospitalSubsidy SAILGrantsSubsidy $ 5,216,199
MEDICAL CENTER $ 11,330,448 26,276,572
NON-AHCCCS HEALTH PLANS $ 5,356,909 585,201
TOTAL $ 16,687,357 5,216,199 26,276,572 585,201 $ 48,765,329
$ 5,216,199
$ 37,607,020
$
5,942,110
The following is a summary of the Enterprise Funds at June 30, 1 996:
MaricopaHealthPlan MedicalCenter CountyResponsible ArizonaLong-TermCareSystem Non-AHCCCSHealth Plans Solid Waste TOTAL
OPERATING REVENUES (Thousands) $ 60,596 153,853 231,462 17,881 6,143 $ 471,935
OPERATING EXPENSES (Thousands) $ 55,933 193,105 40 220,413 24,491 15,558 $ 509,540
NET INCOME/(LOSS) (Thousands) $ 5,163 (2,851) (40) 14,184 461 (7,086) $ 9,831
Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments of the County or to other governmental units on a cost reimbursement basis. The following is a summary of certain selected operating results of the Internal Service Funds for the current fiscal year:
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OPERATING REVENUES (Thousands) Health ServiceAdministra'don Equipment Services Telecommunications Risk Management Employee BenefitTrust TOTAL $ 6,540 11,842 9,563 3,702
OPERATING EXPENSES (Thousands) $ 6,007 11,936 9,007 10,782
NET INCOME/(LOSS) (Thousands) $ 578 2,069 470 (4,655)
..
$
39,689
71,336 $
42,4o4
80,136 $
(2,375)
13,913)
Fiduciary Operations
Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of operation. The principal Agency Funds are Property Tax Collection, Special Purpose Funds and Deferred Compensation. In addition, the County maintains other Agency Funds not under the control of the Board of Supervisors (i.e. School and Special Districts).
DEBT ADMINISTRATION
At June 30, 1996, Maricopa County had outstanding bonded debt issues of $154,555,000. The County issued $40,000,000 in Series 1995 Tax Anticipation Notes at an interest rate of 4.5 percent and a yield of 3.95 percent in August 1995. The notes were issued to finance working capital requirements and matured July 31, 1996. During August 1995, Moody's Investors Service upgraded the County's short-term notes to MIG-1, the firm's highest rating for short-term debt. Standard and Poor's Corporation has removed its "negative outlook" on the County's long-term debt and declared the County "stable." County bond ratings are as follows:
General Obligation Moody's Investors Service Standard & Poor's Corporation A A
Tax Anticipation Notes MIG-1 SP-1
Net direct bonded debt per capita was $60.38 as of June 30, 1996. Under current State Statutes, a local government's outstanding general obligation debt is subject to legal limitations based on six percent of the value of the County's taxable property ascertained by the last assessment. However, with voter approval the County may become indebted not to exceed 15 percent of such taxable property. The legal debt margin as of June 30, 1996, was well below the legal limit:
XX
6% TvDe Bonds General Purpose Legal Limit Outstanding Bonds Legal Debt Margin $ 847,166,097 69,515,000 $ 777,651,097 $ $
15% TVDeBonds Specific Purposes 2,117,915,242 2,117,915,242
CASH MANAGEMENT
The County invests all cash, other than imprest accounts, with the Maricopa County Treasurer's Office. The Treasurer's Office investment practice is to minimize credit and market risks while maintaining a competitive yield on its portfolio. The securities purchased are held by the County's financial institution's trust department or agent. The actual purchased security indicates the financial institution as the owner. However, these securities are booked in the financial institution's records as Maricopa County securities. The effective annual yield on investments was 5.05%. The Department of Finance maintains a monthly cash flow analysis which contributed to the elimination of the County's need to draw on its line of credit for fiscal year 1995-96. Interest earned by County funds is apportioned twice a month based upon their mid-month and month-end balance. Interest expense is charged to funds with deficit balances.
RISK MANAGEMENT
Maricopa County has an established Self Insurance Fund to account for the risk management function of the County. The fund is administered by an appointed Board of Trustees and provides self-insurance coverage to the County for medical malpractice, workers compensation, unemployment, general liability, property damage, environmental damage and employee benefits as well as acquiring coverage for other risks. Claims and litigation management are also involved in this program. Self-insured retention (SIR) levels have been reviewed and have been maintained at $1,000,000 for general liability, $1,000,000 for nonowned auto liability and $300,000 for workers compensation. The fund is financed by charges to specific user departments and to the General Fund. The following loss control techniques are employed to enhance our overall risk management program: ? ? employee safety programs which include safety awareness and training. regular inspections of all facilities and operations by the Maricopa County Safety and Loss Control offices. inspections by third party inspectors such as State OSHA and insurance company loss control specialists.
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xxi
OTHER INFORMATION
Independent Audit
Maricopa County engages the audit services of the Office of the Auditor General, State of Arizona, to comply with Arizona Revised Statutes which require an annual audit of the County's financial statements. The Independent Auditor's Report has been included to demonstrate compliance with Arizona Revised Statutes.
Securities And Exchange Commission (SEC)
in October of 1994, the County was contacted by representatives of the Pacific Regional Office of the Securities and Exchange Commission (SEC). They were interested in the 1993 bonds and refunding issue that had been authorized back on July 26, 1993. The SEC conducted a confidential, informal investigation into those bond offerings. The County cooperated fully with the SEC staff. The inquiry culminated with the SEC issuing an Order dated September 30, 1996, instituting cease and desist proceedings against Maricopa County. This is a civil administrative proceeding, and no current or former County employees have been charged. This administrative proceeding inquires into the contents of several specific documents prepared in 1993 in connection with the bond issue. On October 2, 1996, the Maricopa County Board of Supervisors approved an offer to settle this matter. The terms for this settlement were prepared in collaboration with attorneys for the SEC. The County has every reasonable expectation that the settlement will be accepted by the Commission in the very near future. In doing so, the County will neither admit nor deny any of the SEC's allegations. No fines or penalties are to be imposed. In addition, the County would agree to comply with all requirements of the SEC in the future.
Expenditure Limitation
On June 30, 1980, Arizona voters approved general propositions amending the Arizona Constitution to establish expenditure and revenue limitations for local governments. The purpose of the expenditure limitation is to control expenditures and limit future increases in spending to adjustments for inflation, deflation and population growth of the County. The Constitution also limits the amount of revenues that may be generated from property taxes. A two percent annual increase is the maximum allowed by law unless special voter approval is obtained.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Maricopa County, Arizona for its comprehensive annual financial report for fiscal year ended June 30, 1995. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
xxii
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Maricopa County has received a Certificate of Achievement for the last seven consecutive years (fiscal years ended 6130189-6130195). We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA.
Acknowledgment
The preparation of this report could not be accomplished without the efficient and dedicated services of the Department of Finance staff. Appreciation is expressed to all of those who assisted in and contributed to the preparation of this report. We would also like to thank the Board of Supervisors for its interest and support in planning and conducting the financial operations of the County in a responsible manner. Respectfully submitted,
Davi;:l R.-Smith -' County Administrative Officer
Deborah S. L a B o r Chief Financial ODncer ~
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!1 i I I I I I i I I I I I I I I I I
Certificate of Achievement for Excellence in Financial Reporting
Presented to
County of Maricopa, Arizona
For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1995
A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government F'mance 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.
Presideo?"
Executive Director
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FINANCIAL S E C T I O N
Independent Auditors' Report General Purpose Financial Statements General Purpose Financial Statements - Notes Combining, Individual Fund And Account Group Statements And Schedules: General Fund Special Revenue Funds Debt Service Funds Capital Projects Funds Enterprise Funds Internal Service Funds Trust And Agency Funds General Fixed Assets Account Group General Long-Term Debt Account Group
I
STATE
D O U G L A S R. N O R T O N . C P A AUDITOR G(N I~NAI.
OF ARIZONA
OF THE DEBRA K. DAVENPORT. CPA o(puTY AU0,TOUG~N[~AL
OFFICE
I I I I I I I I I I I I I I I I
AUDITOR
GENERAL
Independent Auditors' Report Members of the Arizona State Legislature
The Board of Supervisors of Maricopa County, Arizona
We have audited the accompanying general purpose financial statements of Maricopa County as of and for the year ended June 30, 1996, as listed in the table of contents. These general purpose financial statements are the responsibility of the County's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of the Maricopa County Major League Stadium District which statements reflect total assets of $24,790,434 and $89,063,314 of the Capital Projects Funds and the General Fixed Assets Account Group, respectively, as of June 30, 1996, and total revenues and other financing sources of $87,380,214 of the Capital Projects Funds for the year then ended. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion on the financial statements, insofar as it relates to the amounts included for the Maricopa County Major League Stadium District in the Capital Projects Funds and the General Fixed Assets Account Group, is based solely on the report of the other auditors. We conducted our audit in accordance with generally accepted auditing standards and Govemment 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the report of the other auditors provide a reasonable basis for our opinion. In our opinion, based on our audit and the report of the other auditors, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Maricopa County as of June 30, 1996, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles.
1
2910 NORTH 44TH STREET ? SUITE 410 ? PHOENIX, ARIZONA 85018 ? (602) 553-O333 ? FAX (602) 553-OO51
As discussed in Note 27E, the County is currently negotiating an operating agreement with an independent health care provider to assume the responsibility for managing, maintaining, and operating the County Health System. If such an operating agreement is consummated, the impact on the future financial position and operations of the County's Proprietary Fund Types Enterprise Funds will be significant. As discussed in Note 2, the County reclassified a Special Revenue Fund to a Capital Projects Fund and certain Agency Funds to the Special Revenue Funds, which constitute a change in reporting entity. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of Maricopa County taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The information included in the introductory and statistical sections listed in the table of contents has not been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, accordingly, we express no opinion on such information. In accordance with Govemment Auditing Standards, we will also issue reports on our consideration of the County's internal control structure and on its compliance with laws and regulations at a future date.
\/-"
d ~
Douglas R. Norton Auditor General October 18, 1996
2
I I I I I I I I I I I I I I I I I I I
I I I I I I I I I I I i I i I I I I I
Financial Section
(D .M (D
e-
"ID 0 m
~?
"11
-i
m,
m
General Purpose Financial Statements
3
'9
The General Purpose Financial Statements are intended to provide the users with an overview and broad perspective of the financial position and results of operations for Maricopa County as a whole.
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Combined Balance Sheet All Fund Types And Account Groups June 30, 1996
GOVERNMENTALFUNDTYPES SPECIAL DEBT REVENUE SERVICE $ 94,259,199 $ 20,471,954 1,550,626 1,130,426 1,017,190 31,129 1,189,675 1,233,154 29,098,823 972,017 412,724 428,945 2,093 844,560 885,100 156,758 $ CAPITAL PROJECTS 22,5.39,824
I
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n
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ASSETS AND OTHER DEBITS Cash and cash equivalents Marketablesecurities Cash and investmentswith trustee Receivables(net of allowancesfor uncollestibles): Taxes Accounts Accrued interest Special assessments Depositswith other governmentalunits Due from other funds Due from other governmentalunits Inventoryof supplies Prepaids Miscellaneousdue from Property, plant and equipment Accumulated depreciation Amount availablefor retirementof long-termdebt Amount to be providedfor retirementof long-termdebt Total assets and other debits UABIMTIES. EQUITYAND OTHERICREDITS Liabilities: Vouchers payable Employeecompensation Accrued liabilities Notes payable Due to other funds Due to other governmentalunits Deferred revenue Deposits held for other parties General obligationbonds payable General obligationbonds interestpayable Stadium District revenuebends payable Special assessmentdebt with governmentalcommitment Special assessmentinterest payable Housing Authority permanentnotes payable Housing Authority bonds payable Housing Authority loans payable $ $
GENERAL 36,146,120 3,430,419 2,385,197 643 701,707
69,712,638 48,789,699 2,803,113 160,770
708,766 15,141,949
$
164,130,306
$
120,344,337
$
24,163,278
$
38,547,297
9,708,210 11,289,322 2,516,819 40,000,000 20,748,697 15,323,160 3,659,499
$
13,308,312 4,332,306 195,519 1,068,922 9,593,616 3,765,794
$
$
8,371,167
930,839 1,312,815 14,960,000 5,931,530 1,300,000 35,247 27,420
i I I I I I I I !
I
Capita/leasespayab/e
Certific~es of participationpayable Claims and judgementspayable Liability for reportedand incurredbut not reported claims Total liabilities Equity and other credits: Contributedcapital Investment in generalfixed assets Retainedearnings: Unreserved Fund balances: Reservedfor inventoryof supplies Reservedfor debt service Unreserved Total equity and other credits Total liabilities,equity and other credits See the accompanyingnotes to the financial statements. $
103,245,707
32,264,469
23,567~012
9,302,006
I
I
2,803,113 58,081 ~486 60,884~599 164,130,306 $
972,017 616,266 67,107r851 88,079,358 120,344,337 $ 616,266 24,183,278 $ 29~245,291 29,245,291 35,547,297
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PROPRIETARY FUND TYPES INTERNAL ENTERPRISE SERVICE 60,557,475 2,808,691 $ 60,352,444 1,803,935 $ FIDUCIARY FUND TYPE TRUST AND AGENCY 953,756,980 19,963,600 89,448,242 ACCOUNT GROUPS GENERAL GENERAL FIXED ASSETS LONG-TERM DEBT TOTALS (MEMORANDUM ONLY) JUNE 30, 1996 $ 1,249,083,996 21,787,538 97,237,978 3,944,568 58,886,074 14,615,503 875,689 1,189,675 104,845,036 86,946,145 5,935,860 915,816 2,116,983 817,207,886 (91,027,861) 616,266 341,933,432 2,716,110,584
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58,885,431 725,294
701,147
11,311,314
21,101,700 2,813,197 1,655,242 303,510 1,234,503 118,611,163 (55,915,571)
1,802,616 505,488 612,306 307,926 43,968,488 (35,112,290)
9,401,062 102,477
1,060 654,628,235 616,266 341,933r482 342,549,~8
$
212,780,635
$
74,942,063
$
1,084,004,735
$
654,628,235
$
$
$
15,3~,555 7,904,678 40,934,~7 66,503,291 2,795,731
$
1,265,547 566,8~ 331,2~ 1,023,637
$
2~,~8
$ 19,684,629
$
14,569,650 945,150,337 123,981,752 154,555,000 37,560,000 549,405 17,942,385 149,609 2,397,237 12,482,894 27,807,099 69,421,440
3,855,754 6,648,911 49,3231483 52~530r744 17,730,833 654,~8,235 15,687,585 4,680,486
143,972~717
1,0831906,707
342~549r698
48,207,759 48,777,739 48,978,408 40,000,000 104,845,036 972,862,844 8,738,108 123,981,752 169,515,000 5,931,530 38,860,000 584,652 27,420 17,942,385 149,609 2,397,237 16,338,648 34,456,010 69,421,440 491323,483 1~791~339~060 70,651,166 654,628,235 20,568,071 3,775,130 616,266 174,532~656 924,771,524
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$
52,920,333
681807~918 212,780,635 $
221411~319 74,942,063 $
981028 98,028 1,094,004,735 $
6,54,~8,235 654,628,235 $ 342,549,698 $
2,716,110,$84
7
Combined Statement Of Revenues, Expenditures And Changes In Fund Balances All Governmental Fund Types And Expendable Trust Fund Year Ended June 30, 1996
GOVERNMENTAL FUND TYPES SPECIAL REVENUE 37,949,582 $ 10,074,284 165,801,257 21,659,510 1,254,251 13,669,393 250,408,277 DEBT SERVICE 20,072,454 277,295 527,225 1,075,861 21 ~952,835 $ 87,061,064 89,650 1,257,867 88,408~581 CAPITAL PROJECTS
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GENERAL REVENUES Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Miscellaneous Total revenues $ 176,554,624 $ 2,340,983 312,660,997 25,416,938 8,608,556 22,698,183 548,280,281
E,E~.EB~TJJBE~
Current: General government Public safety Highways and streets Health, welfare and sanitation Culture and recreation Education Capital outlay Debt service: Principal retirement Interest charges Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES~ Operating transfers in Operating transfers out Proceeds of capital leases Total other financing sources (uses) Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year - as adjusted Decrease in reserve for inventory of supplies Residual equity transfer Fund balances at end of year Sea the accompanying notes to the financial statements. $ 82,343,610 218,315,447 225,812,711 1,821,375 1,113,304 21,805,890 2,050,062 66,701,441 42,260,676 66,144,572 9,864,757 67,995,751 16,563,238 12,095,162 551 ~212,337 (2.932.056) 255,017,259 ('4.608.982) 28,658~400 (6.705.565) 90~618,087 (2.209,506~ 90,618,087
75,886,800 (51,704,278) 8.747.4C~4 32.929.986
8,488,381 (6,083,072) 364~422 2.769.731
3,857,334 (113,122) 3,744~212
2,115,355 (109,727) 2.005,l~28
29~997,930
(1,839,251)
{2,961,353) 2,439,895 1~ 137,724
(2O3.878)
30,586,893 (1,137,724) $ 29,245.291
19,289,215
(88,286) 11~685,740 60.884.599 $
90,098,559 (179,440) 88.079.868
616,266
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FIDUCIARY FUND TYPE EXPENDABLE TRUST
TOTALS fMEMORANDUM ONLY~
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JUNE 30. 1996 $ 234,576,660 12,415,267 565,800,613 47,693,323 9,652,807 38,758,547 909,107,217
$
57,243 57,243
i |;
16,172
1
84,393,672 265,016,888 42,260,676 291,957,263 11,702,304 1,113,304 180,419,728 16,563,238 12~095~162
i
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16.172 41,071
925.522.255 f16.415.038)
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90,347,870 (58,010,199) 9~111~886 41~449,557
41,071 56,957
25.034.519 142,471,519 (267,726) 11.685,740 178,924.052
$
98,028
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Combined Statement Of Revenues, Expenditures And Changes In Fund Balances Budget And Actual - General, Special Revenue, Debt Service And Capital Projects Funds Year Ended June 30, 1996
BUDGET REVENUES Taxes Licenses and permits Intergovemmeofal Charges for services Fines and forfeits Miscellaneous Total revenues $ 171,804,029 $ 2,000,800 297,086,241 31,329,986 13,460,767 515,681,823 176,554,624 $ 2,340,983 312,660,997 25,416,938 8,608,556 22,698,183 548,280,281 4,750,595 $ 340,183 15,574,756 (5,913,048) 8,608,556 9,237,416 32,598,458 38,514,345 $ 10,055,833 197,410,952 27,514,413 126,956 26,205,833 299,828,332 37,940,582 10,074,284 165,388,204 19,807,685 1,242,988 13,368,020 247,830,763 $ (564,763) 18,451 (32,022,748) (7,706,728) 1,116,032 (12,837,813) (51,997,569) GENERAL FUND ACTUAL VARIANCE BUDGET SPECIAL REVENUE FUNDS ACTUAL VARIANCE
Current: General government Public safety Highways and streets Health, welfare and sanitation Culture and recreation Education Capital outlay Debt service: Principal retirement Interest charges Total expenditures Excess (deficiency) of revenuesover e0?penditures
86,379,576 223,608,144 229,703,065 2,087,712 1,157,196 12,189,433
82,343,610 218,315,447 225,812,711 1,821,375 1,113,304 13,416,720
4,035,966 5,292,697 3,890,354 266,337 43,892 (1,227,287)
3,589,488 78,601,456 35,753,202 86,805,653 20,167,942 97,655,001
2,050,062 64,365,888 42,260,676 65,987,663 9,701,099 67,602,074
1,539,426 14,235,568
(6,507,474)
20,817,990 10,466,843 30,052,927
555,125,126 (39,443,303)
542,823,167 5,457,114
12,301,959 44,900,417
322,572,742 (22,744,410)
251,967,462 (4,136,699)
70,605,280 18,607,711
OTHER FINANCING SOURCES IUSES~ Operating transfers in Operating transfers out
74,182,400 (33,271,913)
75,886,800 (51,704,278)
1,704,400 (18,432,365)
6,277,792 (8,175,000)
8,488,381 (6,083,072)
2,210,589 2,091,928
Total ether financing sources (uses) Excess (deficiency) of revenues and other sources over expendituresand other uses Fund balancesat beginning of year - as adjusted Decrease in reservefor Inventory of supplies Residual equity transfer
40,910,487
24,182,522
(16,727,965)
(1,897,208)
2,405,309
4,302,517
1,467,184 19,289,215
29,639,636 19,289,215 (88,286) 11,685,740
28,172,452
(24,641,618) 89,078,224
(1,731,390) 89,078,224 (196,088)
22,910,228
(88,286) 11,685,740
(196,088)
Fund balances (deficits) at end of year
$
20,756,399
$
60,526,305 $
39,769,906
$
64,436,606
$
87,150,746
$
22,714,140
See the accompanying notes to the financial statements.
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$ BUDGET DEBT SERVICE FUNDS ACTUAL VARIANCE CAPITAL PROJECTS FUNDS BUDGET ACTUAL VARIANCE TOTALS (MEMORANDUM ONLY) BUDGET ACTUAL VARIANCE 21,632,875 $ 20,072"454 $ 277.295 527.225 1,075,861 21,952,835 (1,560,421) $ 277.295 291,554 384,221 (607,351) 82,350,001 82,350,001 87,061,064 89,650 1,257,867 88,408,581 $ 4,711,063 89,650 1,257,867 6,058,580 $ 235,671 231,951,249 $ 12,056,633 576,847,194 59,080,070 126,956 40,358,240 920,420,342 234,576,660 $ 12,415.267 565,387,560 45,841,498 9,851,544 38,399,931 906'472,460 2,~.5,411 358,634 (11,459,634) (13,238,572) 9,724,588 (1,958,309) (13,947,882)
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691,640 22,560,186
1,449,777 101,458,036 16,402,893 11,991,023 28,393,916 (5,833,730) 16,563,238 12,095,162 28,658,4100 (6,705,565) (160,345) (104,139) (264,484) (871,835) 1(~,907,813 (20,557,812) 90,618,087 (2,209,506) 00,618,087
1,449,777 10,839,949
89,969,064 30~,209,600 35,753.202 316,508,718 23,705,431 1,157,196 211,30~,470 16,402,893 11,991,023
84,393,672 282,681,335 42,260,676 291,800,374 11,522,474 1,113,304 171,636,881 16,563.238 12,095,162 914,067,116 (7,594,656)
5,575,392 19,528,265 (6,507,474) 24,708,344 12,182,957 43,892 39,665,589 (160,345) (104,139) 94.,9G2,481 80,984,599
12,289,726 18,348,306
1,008,999,597 (88,579,255)
2,115,355 (109,727) 2,005,628
2,115,355 (109,727) 2,005,628
80,460,1g~ (41,446,913) 39,013.279
86,490,536 (57,897,077) 28,593,459
6,030,344 (16,450,164) (10"419,820)
(s,s33,73o)
2,439,895
(s,7os,5ss)
2,439,895
(s71 ,e35)
(20,557,812) 30,586,8g~
(203,S7e) 30,586,893
20,353,934
(49,5SS,g76) t41,394,227
20,gee,eo~ 141,394,227 (284,374) 11,685,740
70,564,779
1,137,724 $ (3,393,835) $ (3,127,946) $
1,137,724 265,889 $ 10,0~9,081 $
(1,137,724) 29,245,291 $
(1,137,724) 19,216.210 $ 91,828.251 $
(284,374) 11,685,740 81,966,145
173,794,396 $
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Combined Statement Of Revenues, Expenses And Changes In Fund Equity All Proprietary Fund Types
Year Ended June 30, 1996 TOTALS (MEMORANDUM ONLY}
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PROPRIETARY FUND T Y P E S INTERNAL SERVICE $ 71,231,729 104,646 71,336,375
ENTERPRISE OPERATING REVENUES Net patient service revenue Charges for services Other Total operating revenues OPERATING EXPENSES Personal services Supplies Professionalservices Other services Legal Insurance Leases and rentals Repairs and maintenance Travel and transportation Support and care of persons Utilities Depreciation Miscellaneous Total operating expenses Operating loss NON OPERATING REVENUES fEXPENSES~ Grant revenues Disproportionateshare settlement Interest income Interest expense Gain (loss) sale of fixed assets Net non-operatingrevenues (expenses) Net income (loss) before operating transfers OPERATING TRANSFERS Transfers in Transfers out Net income (loss) Fund equities at beginning of year, as adjusted OTHER CHANGES IN FUND EQUITIES Residual equity transfer Increase in Contributed Capital Decrease in Contributed Capital Transfer Fund Equity to General Fund Transfer Fund Equity to Non-AHCCCS Health Plans Transfer Fund Equity to Enterprise Fund Transfer to General Fixed Assets Account Group Transfer to General Long-Term Debt Account Group Fund equities at end of year See the accompanying notes to the financial statements. 184,782,924 281,902,780 5,249,093 471,934~797
JUNE 30, 1996 $ 184,782,924 353,134,509 5,353,739 543,271,172
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114,284,173 26,491,449 52,134,091 28,015,729 5,125,346 485,992 3,038,069 2,498,933 4,373,821 249,938,633 2,801,692 5,257,472 15,094,698 509,540,098 (37,605,301) 4,138,822 75,886,800 4,327,935 (4,024,352) (555,251) 79,773,954 42,168,653
5,016,190 3,517,340 9,865,226 3,292,871 47,502,545 875,639 3,894,755 69,655 177,240 4,870,263 1,054,530 80,136,254 (8,799,879)
119,300,363 30,008,789 52,134,091 37,880,955 8,418,217 47,988,537 3,913,708 6,393,688 4,443,476 249,938,633 2,978,932 10,127,735 16,149,228 589,676,352 (46,405,180) 4,138,822 75,886,800 8,030,435 (4,113,651) 718,654 84,661~060 38,255,880
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3,702,500 (89,299) 1~2731905 4,887,106 (3,912,773)
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43,549,129
43,549,129
(75,886,8001
9,830,952 56,557,559 (3,912,773) 30,412,249
(75,886,800)
5,918,209 86,969,808
14,541 2,401,442 (11,685,740) (9,401) (3,196) 11,701 ~731 68,807,918
720,312 (9,254,252)
$
(714,467) 4,234,045 926,205 22,411,319
$
14,541 3,121,754 (9,254,252) (11,685,740) (9,401) (714,467) 4,230,849 12,627,936 91,219,237
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I, Combined Statement Of Cash Flows All Proprietary Fund Types Year Ended June 30, 1996
CASH FLOWS FROM OPERATING ACTIVITIES Operating less Adjustments to reconcile operating loss to nat cash provided by operating activities: Depreciation Changes in assets and liabilities: increase in: Marketable securities Due from other funds Due from other govemmantel units Miscellaneous due from Prepalds Due to other funds Due to other governmontal units Decrease in: Accounts receivable Inventory of supplies Prepalds Miscellaneous due fi'om Vouchers payable Employee compensation Accrued liabilities Due to other funds Liability for reported and incurred but not reported claims Net cash used for operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants received Disproportionate share settlement Operating transfers from other funds Operating transfers to other funds Interest expense Cash transfer from Internal Service Fund Net cash provided by (used for) noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of fixed assets Proceeds from sale of fixed assets Proceeds from sale of certificates of participation Capital lease payments Certificate of participation payments Net cash used for capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Interest income Net cash provided by investing activities NOt increase (decrease) in cash and cash equivalents Cash and cash equivalents, July 1, 1995 (as adjusted) Cash and cash equivalents, June 30, 1996 ' SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Transfer Fund Equity to Enterprise Fund Transfer of equipment from Internal Service Fund Transfer of accumulated depreciation from Intemel Service Fund Transfer of equipment from County Responsible Fund Transfer of accumulated depreciation from County Responsible Fund Transfer of equipment from General Fixed Assets Account Group Transfer of employee compensation liability from Internal Service Fund Transfer to General Fixed Assets Account Group and Enterprise Fund Transfer to General Fund and General Long-Term Debt Account Group Additions to Fixed Assets through Contributed Capital Adjustment to equipment due to fixed asset correction Deletion of equipment due to change in capitalization policy Deletion of equipment Elir~r,.~on of eocumdated depreelat~onrelated to detotions Adjustment to accumulated depreciation of equipment due to fixed asset corre~on Transfer of depreciation to General Fixed Assets Account Group and Enterprise Fund Deletion of accumulated depreciation due to change in capitalization policy Purchase of equipment under previsions of capital leases Total Noncash Investing, Capital and Financing Activities See the accompanying notes to the financial statements. $ PROPRIETARYFUNDTYPES INTERNAL ENTERPRISE SERVICE (37,e0~,301) 5,257,472 $ (8,799,979) 4,870,263 (1,803,938) (197,037) (262,336) $ TOTALS (MEMORANDUMONL~ JUNE 30. 1996 (46,405,180) 10,127,735
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(1,803,938)
(17,374,576)
(17,177,539) (2,813,197)
(657,276)
(113,113) 13,076,720 34,366 5,004,568 705,767 40,375 (443,962) (561,990) (4,969,027) (40.222.137~ 4,138,822 75,886,800 43,549,129 (75,865,800) (4,024,352) 65.553 43.729.152 (5,866,047) 6,900,000 (1,270,676) (1.043.9o~1) (1.280.71~) 3.909.061 3.909.061 6,135,363 57.230.803 63.366.166
(2,813,197)
(657,276) (375,449) 13,076,720 34,366 5,025,569 843,468 40,375 1,304,827 (3,370,993) (1,977,960) (6,290,460) (3,153,4g~) (668.1571 ~54.437.618~ 4,138,82.2 75,886,800 43,549,129 (75,886,800) (4,113,650) 65.553 43.639.854 (10,519,163) 1,849,463 6,900,000 (1,274,456) ~1.043.990) (4.088.146) 7.240.473 7.240.473 (7,645,437) 131.364.047 129,718,610
21,001 137,701 1,304,827 (2,927,031) (1,415,970) (1,321,433) (3,153,4,~) (668.1573 f14.215.481~
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(89,298)
(89.298)
(4,653,116) 1,849,463 (3,780) (;~.807.433~ 3.331.412 3.331.41~ (13,780,800) 74.133.244 60.352.444
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$
$
I
$ 5,991,119 4,836,576 (14,946) (11,751) 905,928 505,629 15,991 786,188 2,152,617 (782,412) (7,750,808)
14,541
$
14,541 5,g91,119 4,836,576 (14,946)
(11,751)
(16,503,889) (926,205) 720,312 (791,032) (134,054) (9,383,887) (758,266) 905,928 505,629 (16,503,889) (910,214) 1,506,500
I
1,361,585
I i
(7,~gs,197)
(389,369) (565,036) 520.373 ~995.098)
(e,44s,3~)
(109,231)
(916,466) (17,134,695)
(15,6~.ssl)
(1,147,635) (10,783,755) (674,267) 520.373 $
(lO,783,755)
$ f47.103.850)
f48.og8.g48)
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Financial Section
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G e n e r a l P u r p o s e Financial Statements - Notes.
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The Notes to the General Purpose Financial Statements include a summary of significant accounting policies and other disclosures considered necessary for a clear understanding of the accompanying financial statements. ~
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Maricopa County Notes to the Financial Statements
For the Fiscal Year Ended June 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of Maricopa County conform to generally accepted accounting principles applicable to governmental units as promulgated by the Governmental Accounting Standards Board (GASB). A summary of the County's more significant accounting policies follows. The County's major operations include general government, public safety, highways and streets, health, welfare and sanitation, culture and recreation, education, maintenance and construction. In addition, the County owns and operates five enterprise activities: two health plans, a long-term care system, a medical center and landfills. A. Reportinq Entity Maricopa County is a general purpose local government governed by a separately elected board of five county supervisors. These general purpose financial statements present all fund types and account groups of the County (a primary government) and its component units. Component units are legally separate entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the County's operations, so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize they are legally separate from the County. Each blended component unit has a June 30 year-end. The County has no discretely presented component units. The reporting entity is thus comprised of the primary government, Maricopa County Flood Control District, Maricopa County Library District, Maricopa County Stadium District, various Special Assessment Districts and the Maricopa County Street Lighting Districts. The various school districts and some special districts within the County are governed by independently elected boards, and the County is not obligated in any manner for the debt of such districts. Therefore, the financial statements of such districts are not included in the accompanying financial statements except to reflect amounts held in an agency capacity by the County Treasurer. The Component Units are as follows: Maricopa County Flood Control District The Maricopa County Flood Control District provides flood control facilities and regulates floodplains and drainage to prevent flooding of property in Maricopa County. The County Board of Supervisors serves as the Board of Directors of the Flood Control District. Maricopa County Library District The Library District provides and maintains library services for the residents of Maricopa County. The County Board of Supervisors serves as the Board of Directors of the Library District. Maricopa County Stadium District The Stadium District provides regional leadership and fiscal resources to assure the presence of Major League Baseball in Maricopa County. The County Board of Supervisors serves as the Board of Directors of the Maricopa County Stadium District.
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Notes to the Financial Statements (Continued)
MaricopaCountySpecial Assessment Districts
The Special Assessment Districts provide improvements to various properties within the County. The County Board of Supervisors serves as the Board of Directors of the Maricopa County Special Assessment Districts.
MaricopaCountyStreet Liqhtinq Districts
The Street Lighting Districts provide street lighting in areas of the County that are not under local city jurisdictions. The County Board of Supervisors serves as the Board of Directors of the Maricopa County Street Lighting Districts. Separate financial statements of the blended component units are not prepared. During fiscal year 1995-96, the Health Select Fund was renamed Non-AHCCCS Health Plans for financial reporting purposes. B. Fund Accounting The County's accounts are maintained in accordance with the principles of fund accounting to ensure that limitations and restrictions on the County's available resources are observed. The principles of fund accounting require that resources be classified for accounting and reporting purposes into funds or account groups in accordance with activities or objectives specified for those resources. Each fund is considered a separate accounting entity, and its operations are accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses. Account groups are reporting devices to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Accounts are separately maintained for each fund and account group; however, in the accompanying financial statements, funds that have similar characteristics have been combined into generic fund types that are further classified into broad fund categories. A description of the fund categories, types, and account groups used by the County follows. 1. Governmental Funds account for the County's general government activities using the flow of current financial resources measurement focus and include the following fund types. The Genera/Fund is the County's primary operating fund. It accounts for all financial resources of the County, except those required to be accounted for in other funds. The Special Revenue Funds account for specific revenue sources (other than expendable trusts and major capital projects) that are legally restricted to expenditures for specific purposes. The Debt Service Funds account for resources accumulated and used for the payment of general long-term debt principal, interest and related costs. The Capital Projects Funds account for resources to be used for acquiring or constructing major capital facilities (other than those financed by Proprietary Funds).
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Notes to the Financial Statements (Continued)
. Proprietary Funds account for the County's ongoing activities that are similar to those found in the private sector using the flow of economic resources measurement focus. The County applies only those applicable FASB Statements and Interpretations, APB Opinions, and ARBs issued on or before November 30, 1989, to its proprietary activities unless those pronouncements conflict with or contradict GASB pronouncements. The County's proprietary funds include the following fund types: The Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises, in which the intent of the Board of Supervisors is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or for which the Board of Supervisors has decided that periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The Intemal Service Funds account for the financing of goods and services provided by the department or agency to the County departments or agencies, or to other governments on a cost-reimbursement basis. 3. Fiduciary Funds account for assets held by the County on behalf of others, and include the following fund types. The Expendable Trust Fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus. Expendable trust funds account for assets where both the principal and interest may be spent. The Agency Fund is custodial in nature and does not present results of operations or have a measurement focus. This fund is used to account for assets that the government holds for others in an agency capacity. 4.
Account Groups are used to establish control and accountability for certain County assets and liabilities that are not recorded in the funds and include the following two groups.
The General Fixed Assets Account Group accounts for all fixed assets of the County, except those accounted for in Proprietary Funds. The Genera/ Long-Term Debt Account Group accounts for all long-term obligations of the County, except those accounted for in Proprietary Funds.
C. Basis of Accountinq Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied and determines when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The financial statements of the Governmental, Expendable Trust, and Agency Funds are presented on the modified accrual basis of accounting. Revenues are recognized when they become measurable and available to finance expenditures of the current period. Expenditures are recognized when the related fund liability is incurred, except for principal and interest on general long-term debt that are recognized when due. However, since debt service resources are provided during the current year for payment of general long-term debt principal and interest due early in the following year, the expenditures and related liabilities have been recognized in the Debt Service Funds.
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Notes to the Financial Statements
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(Continued)
Those revenues susceptible to accrual prior to receipt are property taxes; franchise taxes; special assessments; intergovernmental aid, grants and reimbursements; interest revenue; charges for services; and sales taxes collected and held by the State at year-end on behalf of the County. Fines and forfeits, licenses and permits, rents, contributions, and miscellaneous revenues are not susceptible to accrual because generally they are not measurable until received in cash. The financial statements of the Proprietary Funds are presented on the accrual basis of accounting. Revenues are recognized when they are earned, and the expenses are recognized when they are incurred. D. Budqetinq and Budgetary Control The County is required by Arizona law to prepare and adopt a balanced budget annually for the General, Special Revenue, Debt Service, and Capital Projects Funds except for the Courts Fund (a Special Revenue Fund) which is exempted by Arizona Revised Statutes from a legally adopted budget. Arizona law further requires that no expenditure shall be made or liability incurred in excess of the amounts budgeted except as provided by law. Appropriation the year from Supervisors. from reserves levels are established on a departmental basis and lapse annually. Transfers during the contingency account to a department's budget require approval by the Board of Budgeted amounts are reported as originally adopted or as adjusted by allocations (contingency) or as amended by authorization from the Board of Supervisors.
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Increases in budgeted revenues and budgeted appropriations resulting from unanticipated grant funds are included in the budget columns in the financial statements. These increases are not subject to Arizona budgetary law. All grant agreements require approval by the Board of Supervisors. The County budgets for Governmental Fund types on a basis consistent with generally accepted accounting principles (GAAP), except for the following types of transactions that are not budgeted for: Capital Lease Transactions Bond Issuance Transactions Transfers In and Transfers Out in the Debt Service Funds In addition, the Courts Fund (Special Revenue Fund) is exempted from submitting a legally adopted budget. Encumbrance accounting, under which purchase orders, contracts and other commitments to expend monies are recorded to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control. Encumbrances outstanding at year end for goods or services which were not received before fiscal year end are canceled. E. Grants Grants are recorded as intergovernmental receivables and revenues when the related expenditure (or expenses) are incurred. Grant monies received in advance are recorded as liabilities in their respective fund. Reimbursement grants for the acquisition of fixed assets of Proprietary Fund Types are recorded as intergovernmental receivables and contributed capital when the related expense is incurred.
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Notes to the Financial Statements (Continued)
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F. Cash and Cash Equivalents Cash belonging to the County is placed in the custody of the County Treasurer. The Treasurer has a fiduciary responsibility for administering all funds held in the County Treasury. The County considers all highly liquid investments with a maturity of three months or less from the date of the financial statements to be cash equivalents. G. Investments Investments are stated at cost except Deferred Compensation investments which are recorded at market value. H. Inventory of Supplies Inventories consist of expendable supplies held for consumption. Inventories of the General and Special Revenue Funds have been recorded as expenditures at the time of purchase and are shown on the balance sheet as assets for informational purposes only. Accordingly, they are fully reserved and are valued at average cost. Inventories of the Proprietary Funds are capitalized when purchased and expensed when consumed. The amount shown on the balance sheet for the Enterprise Funds is valued at cost using the first-in, first-out method. The amount shown on the balance sheet for the Internal Service Funds is valued at cost using the moving average method. I. Property, Plant and Equipment Property, plant and equipment expenditures are recorded in the Governmental Fund types, while the assets are recorded in the General Fixed Assets Account Group. Property, plant and equipment for general governmental purposes are capitalized at cost or estimated fair market value at date of donation in the case of gifts. Depreciation on property, plant and equipment in the General Fixed Assets Account Group is not recorded. The County capitalizes equipment that is relatively permanent and of significant value. Relatively permanent is defined as a useful life of one year or longer. Significant value is defined as $1,000 or more. Structures and improvements of $5,000 or more are capitalized. Certain infrastructure assets, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the County; therefore, the purposes of stewardship and cumulative accountability for capital expenditures are satisfied without capitalizing these assets. Property, plant and equipment which has been acquired by the Proprietary Funds are recorded at cost or estimated fair market value at date of donation in the case of gifts. Depreciation is computed using the straight-line method applied over the estimated useful lives of the assets. The cost of maintenance and repairs is charged to expense as incurred. Significant renewals and improvements are capitalized and retirements are deducted.
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Notes to the Financial Statements (Continued)
The following shows the estimated useful lives of various kinds of County assets:
TYPE OF ASSETS ESTIMATED USEFUL LIFE IN YEARS
Buildings Autosand trucks Otherequipment J. Property Tax Revenues
20 - 5 0 3 3 to 20
Property taxes are recognized as revenues in the fiscal year they are levied and collected or if they are collected within 60 days subsequent to fiscal year-end. Property taxes not collected within 60 days subsequent to fiscal year-end or collected in advance of the fiscal year for which they are levied are reported as deferred revenues. The County levies real property taxes on or before the third Monday in August that become due and payable in two equal installments. The first installment is due on the first day of October and becomes delinquent after the first business day of November. The second installment is due on the first day of March of the next year and becomes delinquent after the first business day of May. The County levies personal property taxes throughout the year. Rolls are compiled by the Assessor as property is discovered and certified to the Board of Supervisors. The Board acting as the Board of Equalization, conducts hearings on the roll and certifies the amended roll to the County Treasurer at regular monthly Board meetings. The taxes are then due the second Monday of the following month and become delinquent 30 days thereafter. The County also assesses personal property taxes upon secured and unsecured property. Secured personal property taxes are assessed and billed with real estate taxes. Unsecured personal property taxes are billed annually and are payable 30 days after the billing date. A lien assessed against real and personal property attaches on the first day of January preceding assessment and levy thereof. K. Compensated Absences The noncurrent liability for vested compensated absences of the Governmental Funds is recorded in the General Long-Term Debt Account Group. Accordingly, no expenditure is reported for this amount until payments are made to employees. Vested compensated absences of the Proprietary Funds are recorded as expenses and liabilities of those funds as the benefits accrue to employees. L. Total Columns on Combined Statements The total columns on the combined statements are captioned "Memorandum Only" to indicate the aggregate of the columnar statements by fund type and account group. The data in these columns does not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles and is not comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
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NOTE 2 - REPORTING
CHANGES
As a result of internal reviews of reporting entities, the County chose to reclassify or close the following funds during fiscal year 1995-96:
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Notes to the Financial Statements (Continued)
FUND NAME
FISCAL YEAR 1995-96 CLASSIFICATION Special Revenue Fund Special Revenue Fund Capital Pr~ec~ Fund
FISCAL YEAR 1994-95 CLASSIFICATION Agency Fund Agency Fund Special Revenue Fund
Grants and Contracts Probate Programs Major League Stadium
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In addition, County Responsible Fund and Managed Care Support Fund were closed during fiscal year 1995-96. The financial impact of these reclassifications is disclosed in Note 3 - Beginning Fund Balances/Equities Restated and Note 30 - Residual Equity Transfers.
NOTE 3 - BEGINNING FUND BALANCES/EQUITIES RESTATED
The beginning fund balance of the Maricopa Medical Center (Enterprise Fund) was increased by $3,191,796 for medical buildings that were reclassified from the General Fixed Assets Account Group to the Maricopa Medical Center. All grant activity was restated from the Agency Funds to the General Fund, the appropriate Special Revenue Funds and to the Maricopa Medical Center and Solid Waste Funds (Enterprise Funds). The Major League Stadium Fund was reclassified from a Special Revenue Fund t o a Capital Projects Fund. The beginning fund balances for the General Fund, the Stadium District (Special Revenue Fund), Major League Stadium (Capital Projects Fund), and Arizona Long Term Care Service Fund (Enterprise Fund) were adjusted for misstatements of accounts receivable and accounts payable at 6/30/95. The property, plant and equipment capitalization threshhold was raised to $1,000 and all fixed assets under that level were eliminated. The resulting loss on disposal of fixed assets was treated as a reduction in beginning retained earnings in the Enterprise Funds and Internal Service Funds. Fixed assets in the Enterprise Funds and Internal Service Funds were adjusted to agree with the detailed records.
General
Fund Balance/Equity at June 30, 1995 as previously reported Reclassification of Medical Center Fixed Assets Reclassification of Grant Activity out of Agency Funds Reclassification of Major League Stadium Fund Correct misstatement of receivables/payables Change Fixed Asset Capitalization level to $1,000 Correct overstatement of Property, Plant and Equipment
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Special Revenue $102,769,659 (466,374) (11,282,633) (922,093)
Capital Projects $ 21,682,538 11,282,633 (2,378,278)
Enterprise
Intemal Service $ 30,469,837
$ 21,519,184 (1,168,058) (1,061,911)
$ 50,663,419 3,191,796 4,262,903 (693,371) (217,377) (649,8111
$ 56,557,559
(24,823) t32,765)
$ 30,412,249
FundBalance/Equityat July1, 1995 as adjusted
$ 19,289,215
$ 90,098,559
$ 30,586,893
NOTE 4 - INDIVIDUAL FUND DEFICITS
The Sports Authority Fund (Special Revenue Fund) and Risk Management Fund (Internat Service Fund) deficits of $55,443, and $3,522,832 respectively, at June 30, 1996, resulted from operations during the year, but are expected to be corrected through normal operations in fiscal year 1996-97.
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NOTE 5 - CASH AND INVESTMENTS Arizona Revised Statutes authorize the County to invest public monies in the State Treasurer's investment pool; interest-bearing savings accounts, certificates of deposit and repurchase agreements in eligible depositories; bonds or other obligations of the U.S. government that are guaranteed as to
23
Notes to the Financial Statements (Continued)
principal and interest by the U.S. government; and bonds of the State of Arizona counties, cities, towns, school districts, and special districts as specified by statute. As required by statute, collateral is required for demand deposits, certificates of deposit, and repurchase agreements at 101 percent of all deposits not covered by federal depository insurance. Cash and investments held by the County Treasurer consist of both County monies and monies of other entities not under the control of the Board of Supervisors (i.e., primarily monies of the various school districts). However, the Treasurer has a fiduciary responsibility to administer all monies held in the County Treasury. The Treasurer invests, on a pool basis, all cash not specifically invested for a fund or program. Interest earned from investments purchased with such pooled monies is allocated to each of the funds based on their mid-month and month-end cash balance. Investments and deposits are presented in four categories on the combined balance sheet:
Totals (Memorandum OnlyI Cash and cash equivalents Marketable securities Cash and investments with trustee Deposits with other governmental units
Total
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i
$
1,248,083,996 21,787,538 97,237,978 1,1 89,675 1,368,299,187
$
At least monthly, the County determines that the collateral has a market value adequate to cover the deposits. All deposits were fully collateralized at fiscal year-end and at all times during the year. The carrying amount of the County's total cash in bank was ($24,059,086) and the bank balance was $31,887,703 at June 30, 1996. Of the bank balance, $300,015 was covered by Federal depository insurance, and the remaining $31,587,688 was collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the County's name. In addition to these deposits the County has $89,448,242 in the deferred compensation plan which is not a categorized investment (see Note 16). The investments are categorized below to give an indication of the level of risk assumed by the County at year-end. Category 1 includes investments that are insured or registered in the County's name, or for which the securities are held by the County or its agent in the County's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the County's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent but not in the County's name.
CREDIT RISK II Repurchase agreements Govemment securities Money market accounts Subtotal Deposits with other governmental units Total investments $ 101,569,000 1,184,380,835 1,285,949,835 $ 15,770,521 15,770,521 III $ CARRYING AMOUNT 101,569,000 $ 1,184,380,835 15,770,521 1,301,720,356 1,189,675 $ 1,285,949,835 $ 15,770,521 $ 1,302,910,031 $ MARKET VALUE 101,569,000 1,163,432,715 15,770,521 1,280,772,236 1,189,675 1,281,961,911
II ! ! i ! II il I
24
Notes to the Financial Statements
(Continued) NOTE 6 - ACCOUNTS RECEIVABLE
Accounts receivable balances shown on the combined balance sheet for the Enterprise Funds are stated net of allowances for uncollectibles. A summary of such receivables and related estimated uncollectibles as of June 30, 1996, follows:
ENTERPRISE FUNDS
I !
Gross accounts receivable Less: estimateduncollectibles Accounts receivable
$ $
121,432,440 (62,547,0091 58,885,431
NOTE 7 - PROPERTY TAXES RECEIVABLE
I I
The County Treasurer is responsible for the collection of property taxes for all governmental entities within the County. Uncollected real property taxes receivable at June 30, 1996 as determined from the records of the County Treasurer's Office, consisted of the following:
SPECIAL REVENUE FUNDS $ 898,824 70,707 85,606 33,474 36,161 5,654 0 1,130,426 $ DEBT SERVICE FUNDS 358,498 686 19,764 9,350 15,978 9,109 15,560 428,945
I
I I I !
YEAR 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91 Prior $
GENERAL FUND 1,676,213 245,974 194,664 72,204 93,720 51,697 140,725 2,385,197
$
$
$
The portion of property taxes receivable not collected within 60 days after June 30, 1996 has been deferred and, consequently, is not included in current year revenues.
NOTE 8 - DUE FROM OTHER GOVERNMENTAL
UNITS
I
k
Amounts due from other governments at June 30, 1996, include $40,049,267, $4,663,649 and $11,371,454 in state shared revenues for sales taxes, auto license taxes and highway user taxes, respectively, $15,141,949 in Major League Stadium tax collected by the State, $6,469,115 in various Federal and State grants and $4,119,619 due from local governments for prisoner detention and police services. The balance of $5,131,092 is comprised of miscellaneous receivables from Federal, State and local governments.
NOTE 9 - GENERAL
FIXED ASSETS
The balance in the General Fixed Assets Account Group on July 1, 1995, was reduced by $8,087,524 to record the effect of the change in the capitalization threshhold for equipment from $500 to $1,000, and by $3,700,818 to adjust for reconciling differences between the general ledger and subsidiary fixed asset records at June 30, 1995. The balance in the General Fixed Assets Account Group on July 1, 1995, was increased $2,378,278 to record assets constructed by the Major League Stadium Fund (Capital Projects)
25
Notes to the Financial Statements (Continued)
and erroneously ommitted at June 30, 1995. A summary of the changes in General Fixed Assets for the year ended June 30, 1996, is as follows:
GENERALFIXEDASSETS Land Buildings Improvementsother than buildings Machineryand equipment Construction in progress Total generalfixed assets $ BALANCE JULY 1, 1995 (As adiusted I 35,762,182 322,274,608 4,711,490 103,923,994 36~302,546 502,974,820 $ ADDITIONS 0 40,000 35,414,861 28,549,235 1561996,078 $ 221,000,174 $ DEDUCTIONS 2,751,727 17,731,395 0 14,027,462 34,836,175 69T346~759 $ BALANCE JUNE30, 1996 33,010,455 304,583,213 40,126,351 118,445,767 158,462,449 654,628~235
i i
ii
I I I
$
$
$
The schedule of investment in General Fixed Assets by Source as of June 30, 1996, is as follows:
General Fund Capital Projects Fund Special Revenue Funds: Transportation Fund Library Fund Air Pollution Fund Public Health Rabies/Animal Control Fund Housing Authority Flood Control Fund Stadium District Major League Stadium Sports Authority Lake Pleasant Recreation Total investment in general fixed assets $ 374,866,172 158,462,449 35,828,204 9,006,268 2,932,557 4,064,587 2,754,033 33,719,204 16,591,921 4,321,095 1,666,917 14,557 10,400,271 $ 654,628,235
I
N O T E 10 - P R O P R I E T A R Y
FUND PROPERTY,
PLANT AND EQUIPMENT
The Proprietary Fund type schedule of property, plant and equipment by asset class as of June 30, 1996, is as follows:
INTERNAL SERVICE FUNDS $ 841,526 32 43,126,930 43,968,488 (35,112,290) $ 8,656,198 TOTAL PROPRIETARY FUNDS $ 7,176,403 59,194,443 6,638,646 89,570,159 162,579,651 (91,027,861) $ 71,551,790
ASSET CLASS Land Buildings Improvements other than buildings Machinery and equipment Total property, plant and equipment Accumulated depreciaUon Net property, plant and equipment
ENTERPRISE FUNDS $ 7,176,403 58,352,917 6,638,614 46,443,229 118,611,163 (55,915,571 ) 62,695,592
$
I
! I ! |
26
N o t e s to t h e F i n a n c i a l S t a t e m e n t s (Continued) NOTE 11 - LEASES
A. Operating Leases - The County's operating leases are for office equipment, land and buildings. Rental expenses under the terms of these operating leases were $9,330,637 for the year ended June 30, 1996. These operating leases have remaining lease terms from one to nine years. Also, they provide renewal options and are contingent on budgetary appropriations each fiscal year. The future minimum rental payments required under these operating leases as of June 30, 1996, are as follows:
SPECIAL REVENUE FUNDS $ 1,370,054 908,269 592,058 258,399 146,137 33,011 $ 3,307~928 $ INTERNAL SERVICE FUNDS $ 329,857 0 0 0 0 0 329,857 $
m
I I I
YEAR 1996-97 1997-98 1998-99 1999-2000 2000-2001 Thereafter Total minimum paymentsrequired
GENERALFUND $ 4,829,717 3,688,200 2,994,089 2,414,067 1,004,753 1~396,162 16~326,988
ENTERPRISE FUNDS 684,498 406,169 268,978 161,127 0 0 1,520,772
TOTAL 7,214,126 5,002,638 3,855,125 2,833,593 1,150,890 1,429,173
$
$
$
$ 21~465,545
B. Capital Leases - The County has entered into various lease-purchase agreements, which are noncancellable, for the acquisitions of the following equipment:
INTERNAL SERVICE FUNDS $ 10,339 15,012 1,326,027 51,849 777,585 104,907 4,535,464 637,144 6,682 102,921 4,212,000 7,699,261 121,594 18,249,407 $ 18,249,407 GENERALFIXED ASSETS ACCOUNT GROUP $
ENTERPRISE FUNDS Medical Building Modular Office Building Land Caterpillar Equipment Vehicles Telephone Systems VMX Voice Mail System Data Communications Equipment Copiers/Facsimile Machines Exercise Equipment Security System Optical Scan Counter Computer Systems and Equipment Medical Equipment Total Fixed Assets Accumulated Depreciation Net Value of Leased Fixed Assets $ 556,344
4,747,716 6,645,099 (1,607,825) $ 5,037,274 $
10,339 1692) 9,647
These lease-purchase agreements require the County to pay all maintenance costs. At the time of the final principal and interest payments, title to the leased equipment transfers to the County. These leases are contingent on budgetary appropriations each fiscal year. The assets are capitalized at total principal cost.
27
Notes to the Financial Statements (Continued)
The following is a schedule of future minimum lease payments for the above described capital leases:
ENTERPRISE FUNDS $ 1,297,054 1,082,784 818,283 575,916 417,415 242,396 4,433,848 (578,094) 3,855,754 GENERAL LONGTERM DEBT ACCOUNT GROUP $ 4,403,206 4,089,598 2,745,950 1,634,272 973,481 0 13,846,507 (1,363,613) 12,482,894
I
! i I I i I ,J
YEAR 1996-97 1997-98 1998-99 1999-2000 2000-2001 After 2001
Total minimum lease payments Amount representing interest Present value of net minimum lease payments
$
$
N O T E 12 - L O N G - T E R M
OBLIGATIONS
A summary of changes in the general long-term obligations of the County for the year ended June 30, 1996, follows:
LongTerm Debt BALANCE JULY 1, 1995
General ObligationBonds Special Assessment Debt With Govemment Commitment Public HousingBonds Public Housing Notes Public Housing Loans Stadium DistrictRevenue Bonds Capital Leases (Note 11) Certificates of Participation Long-Term Compensated Absences*
ADDITIONS
DEDUCTIONS $ 14,960,000 196,547 11,291 $
BALANCE JUNE 30~ 1996 154,555,000 549,405 149,609 17,942,385
$
169,515,000 686,573 160,900 17,800,677 2,492,637 38,860,000 5,142,759 30,623,023 18,459,558 49,905,500
$
59,379
141,708 95,400 1,300,000 10,249,038 2,908,903 2,815,924 1,225,071 31r421r440 $ 4370961636 $
11 r905,500
2,397,237 37,560,000 12,482,894 27,807,099 19,684,629 69,421,440 342r549,698
I
Claims and Judgements Payable**
TotaJ Long-Term Debt
t
$
333,646~627
34r1931565
See Note 13 Compensated Absences See Note 17 Contingent Liabilities
Issues of long-term debt were as follows at June 30, 1996: General Obliqation Bonds General obligation (G.O.) bonds are direct obligations of the County. Prior to issuance, G.O. bonds must have a majority vote approval from the residents. Principal and interest are payable from secondary property taxes levied on all taxable property within the County without limitation as to rate or amount. The bonds are generally callable and the interest payable semiannually.
I ! !
I
i I
28
Notes to the Financial Statements (Continued)
DESCRIPTION 1986 Bond Issue Series C (1990) Series D (1993) 1992 Refunding Bond Issue First Series 1992 Second Series 1992 1993 Refunding Bond Issue 1994 Refunding Bond Issue 1994A Tax Exempt 1995 Refunding Bond Issue AMOUNTOF ISSUE $ 75,000,000 25,575,000 68,500,000 67,500,000 22,250,000 9,220,000 17,320~000 $ 285,365,000 INTEREST RATES 6.625 - 8.900 4.500 - 7.500 4.000 - 7.000 6.250 5.250 4.500 - 7.500 4.500 - 5.000 MATURITYDATES 7-1-99/03 7-1-99/04 7-1-92/03 7-1-94/03 7-1-96/98 7-1-96/02 7-1-96/02 $ $ OUTSTANDINGAT JUNE 30, 1996 6,000,000 25,575,000 27,500,000 61,650,000 22,250,000 9,220,000 17,320~000 169t5151000
I I ! i I I I I I t i
Special Assessment Bonds Debt With Government Commitment Special Assessments Bonds are recorded in the General Long Term Debt Account Group and are payable from assessments collected from property owners benefited by the respective improvements. The proceeds were used to finance construction in these districts. While there is no legal obligation for the County to further secure the special assessment bonds of the districts below, the County has made a moral commitment to take steps necessary to prevent default. The following special assessment districts had bonds outstanding at June 30, 1996.
OUTSTANDING AT JUNE 30, 1996 $ 9,275 269 3,184 171,363 1,631 4,280 5,070 3,560 3,842 7,415 59,933 11,721 16,222 11,489 216,039 5gv379 584v652
DESCRIPTION
Thunderbird North Valencia 99th Place Pecos - McQueen 98th Street 99th Street 98th Way Vine 97th Place 5th Avenue Inland Del Witt 158th Street Boulder Grandview Manor Fairview Lane
AMOUNT OF ISSUE $ 325,000 92,763 42,043 1,505,000 54,675 32,697 25,351 27,630 47,103 54,909 289,383 86,848 73,587 48,813 274,888 59~379 3~039,769
IWrEREST RATES 7.875% 9.000% 9.000% 8.300% 9.000?/o 9.000% 9.000% 9.000% 9.000% 9.000% 9.000% 9.000o/o 9.000% 9.000o/o 9.000% 9.000%
MATURITY DATES 1-1-88/97 1-1-88/97 1-1-88/97 1-1-89/03 1-1 ?89/98 1-1-89/98 1-1-89/98 1-1-90/99 1-1-90/99 1-1-91/00 1-1-91/00 1-1-91100 1-1-93/02 1-1-93/02 1-1-96/05 1-1-g7/06
$
$
Public Housing Bonds Housing Authority Bonds, payable from Federal government subsidies, are due annually in varying principal and interest amounts.
OUTSTANDING AT JUNE 30, 1996 $ 149~609
DESCRIPTION AZ 9-6 $
AMOUNTOF ISSUE 369~787
INTERESTRATE 3.875%
MATURITYDATES 11-1-67?05
29
Notes to the Financial Statements (Continued)
Public Housin.q Notes The Housing Authority has permanent notes payable to the U.S. Department of Housing and Urban Development (HUD). At June 30, 1996, Permanent Notes HUD on Contract SF 220 were $17,942,385 at interest rates ranging from 6.625% to 10% per annum. The maturity of these notes is indefinite and determined by HUD. The Housing Authority does not make principal and interest payments on these notes, as outstanding debt and interest likely will be forgiven by HUD. Housing Authority Loans Payable Housing Authority loans payable at June 30, 1996, consisted of the outstanding notes below. The Authority sold notes to the Federal Financing Bank. These notes will be repaid through Federal government subsidies.
DESCRIPTION AZ 9-5 AZ 9-7 AZ 9-9 AMOUNT OF NOTE $ 180,839 132,574 3,112,494 3,425,907 INTEREST RATE 6.60% 6.60% 6.60% MATURITY DATES 11-1-82/00 11-1-82/97 11-1-81/12 OUTSTANDING AT JUNE 30, 1996 $ 69,969 24,707 2,302,561 2,397,237
$
$
Following is the schedule of principal and interest requirements on the Housing Authority loans payable:
YEAR 1996-97 1997-98 1998-99 1999-00 2000-01 After 2001 $ PRINCIPAL 101,263 108,380 101,941 108,669 115,484 1,861,500 2,397,237 $ INTEREST 158,651 151,534 144,381 137,653 130,838 889,420 1,612,477 $ TOTAL 259,914 259,914 246,322 246,322 246,322 2,750,920 4,009,714
$
$
$
Stadium District Revenue Bonds Stadium District Revenue Bonds are special obligations of the District. The bonds are payable solely from pledged revenues, consisting of car rental surcharges levied and collected by the District pursuant to Arizona Revised Statutes ?48-4234. Under the statute, the District may set the surcharge at $2.50 on each lease or rental of a motor vehicle licensed for hire, for less than one year, and designed to carry fewer than 15 passengers, regardless of whether such vehicle is licensed in the State of Arizona. The District Board of Directors initially levied a surcharge at a rate of $1.50 beginning in January 1992. The District Board of Directors increased the surcharge to $2.50, the maximum amount permitted by statute, in January 1993. The bonds do not constitute a debt or a pledge of the faith and credit of Maricopa County, the State of Arizona, or any other political subdivision. The payment of the bonds is enforceable solely out of the pledged revenues and no owner shall have any right to compel any exercise of taxing power of the District, except for surcharges.
i I I i, 1 I ,i I I I ! ! I i m I i I I
30
Notes to the Financial Statements
(Continued)
AMOUNT OF ISSUE $ 10,640,000 4,870,000 24,160,000 $ 39,670,000 MATURITY DATES 7-1-96/13 7-1-96/03 7-1-94/13 $ OUTSTANDING AT JUNE 30, 1996 $ 10,640,000 4,870,000 23~350r000 38,860,000
DESCRIPTION
INTEREST RATES 3.90 - 5.50% 3.70 - 4.75% 4.50 - 7.70%
Revenue Bonds Series 1993A Series 1993B Peoria Sports Complex Series 1993A
Certificates of Participation Certifications of Participation represent proportionate interests in semiannual lease payments. The County's obligation to make lease payments are subject to annual appropriations being made by the County for that purpose. On August 1, 1994, Maricopa County issued $30,000,000 of Certificates of Participation to assist the Maricopa County Public Finance Corporation in financing the acquisition of the County's Southeast Juvenile Court and Detention Center and its adult detention facility known as the Estrella Jail Complex. The County will lease the property from the corporation for 10 years, at which time title will pass back to the County. On August 1, 1993, Maricopa County issued $3,850,000 of Certificates of Participation to assist in the acquisition, construction and equipping of the County's West Mesa Justice Court and Northwest Regional Probation Center facilities. Additionally, the proceeds were used for an advance refunding of the Certificates of Participation Series 1989 and to prepay land purchase agreements the County had previously executed with the State of Arizona. On October 18, 1995, Maricopa County issued $6,900,000 of Certificates of Participation to pay for the cost of a new information system for the Maricopa Medical Center.
AMOUNT OF ISSUE DESCRIPTION 1995 Certificates of Participation 1994 Certificates of Participation 1993 Certificates of Participation INTEREST RATES 5.69% 4.35 - 6.00% 3.90 - 6.00% OUTSTANDING AT JUNE 30, 1996 $ 5,856,010 25,785,000 2~815~000 34,456,010
MATURITY DATES
$
6,900,000 30,000,000 3,850~000 40,750,000
11-1-95/99
5-25-95/04 6-01-94/08
$.
$
The following is a schedule of future minimum lease payments, for the above described Certificates of Participation:
ENTERPRISE FUNDS $ 2,087,105 2,089,238 2,064,067 748,174 105,645 326,389 7,420,618 (771 r707) 6,648,911 GENERAL LONGTERM DEBT ACCOUNT GROUP $ 4,539,095 4,543,464 4,477,337 4,406,988 4,416,522 13rl 66,574 35,549,980 (7,742,881) 27r807,099
YEAR 1996-97 1997-98 1998-99 1999-00 2000-01 After 2000
Total principal and interest payments Amount representing interest Total Certificates of Participation payable
$
$
31
Notes to the Financial Statements
(Continued)
The following fixed assets are currently associated with the Certificates of Participation:
ENTERPRISE FUNDS Land JuvenileCourt Justice CourtJPmbationCenterBuildings ComputerSystems $ 1,084,429 4,251,485 $ 5r335,914 $ 32,7651569 GENERALFIXED ASSETS ACCOUNTGROUP $ 30,000,000 2,765,569
Refunded and Refinanced Obligations Future debt service on refunded bonds has been provided through advanced refunding bond issues whereby refunding bonds are issued and the net proceeds, plus any additional resources that may be required, are used to purchase securities issued or guaranteed by the United States government. These securities are then deposited in an irrevocable trust under an escrow agreement which states that all proceeds from the trust will be used to fund the principal and interest payments of the previously issued debt being refunded. The trust deposits have been computed so that the securities in the trust, along with future cash flows generated by the securities, will be sufficient to service the previously issued bonds. The proceeds of the refunding issues have been placed in irrevocable trusts and invested in U.S. Treasury obligations that, together with the interest earned thereon, will provide amounts sufficient for future payment of principal and interest of the issues refunded. The outstanding balance of the refunded debt and the related assets held in trust are not included in the accompanying financial statement.
Genera
Object Description
| Rating | |
| TITLE | Comprehensive annual financial report / Maricopa County, Arizona |
| CREATOR | Maricopa County (Ariz.). Board of Supervisors. |
| SUBJECT | Maricopa County (Ariz.). Board of Supervisors--Periodicals; Maricopa County (Ariz.)--Politics and government--Periodicals; Maricopa County (Ariz.)--Appropriations and expenditures--Periodicals; Maricopa County (Ariz.)--Finance; Maricopa County (Ariz.)--Statistics; |
| Browse Topic |
Government and politics |
| DESCRIPTION | This title contains one or more publications. Published annually. Prepared by Dept. of Finance. Include independent auditor's reports by Auditor General's Office. |
| Language | English |
| Contributor | Arizona. Office of the Auditor General. |
| Publisher | Maricopa County (Ariz.). Board of Supervisors. |
| Material Collection |
Annual Reports County Documents |
| Source Identifier | LG 6.3:M 16 F 45 |
| Location | 20288782 |
Description
| TITLE | Comprehensive annual financial report: Maricopa County, Phoenix, Arizona for the fiscal year ended July 1, 1995 - June 30, 1996 |
| DESCRIPTION | 183 pages (PDF version). File size: 11507.928 KB. Prepared by Dept. of Finance. Includes independent auditor's report submitted by Auditor General. |
| Contributor | Arizona. Office of the Auditor General. |
| TYPE |
Text |
| RIGHTS MANAGEMENT | Copyright to this resource is held by the creating agency and is provided here for educational purposes only. It may not be downloaded, reproduced or distributed in any format without written permission of the creating agency. Any attempt to circumvent the access controls placed on this file is a violation of United States and international copyright laws, and is subject to criminal prosecution. |
| DATE ORIGINAL | [1996-10-31] |
| Time Period | 1990s (1990-1999) |
| ORIGINAL FORMAT | Paper |
| Source Identifier | LG 6.3:M 16 F 45/ 1996 |
| DIGITAL IDENTIFIER | 1996.pdf |
| DIGITAL FORMAT |
PDF (Portable Document Format) |
| REPOSITORY | Arizona State Library, Archives and Public Records. |
| Full Text |
Comprehensive Annual Financial Report Fiscal Year Ended June 30, 1996 Maricopa County Phoenix, Arizona Board of Supervisors Tom Rawles Member Don Stapley Member Ed King Chairman Betsey Bayless Member Mary Rose Garrido Wilcox Member I ! i I Comprehensive Annual Financial Report Maricopa County Phoenix, Arizona For The Fiscal Year July 1, 1995 to June 30, 1996 I l il I l I a I 1 I I II ! ! i Prepared By Department of Finance Deborah S. Larson, Chief Financial Officer This page intentionally left blank. I I 1 I I I I I I I i I I ! i t I I I i I I i i I INTROD UCTOR Y S E C T I O N Table Of Contents Listing Of Maricopa County Officials Organizational Charts Letter Of Transmittal Certificate Of Achievement For Excellence In Financial Reporting Comprehensive Annual Financial Report Table of Contents For the Fiscal Year Ended June 30, 1996 Page Introductory Section Table of Contents Maricopa County Officials Organizational Charts Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting i iv V vii XXV Financial Section Independent Auditors' Report General Purpose Financial Statements: Combined Balance Sheet - All Fund Types And Account Groups Combined Statement Of Revenues, Expenditures And Changes In Fund Balances - All Governmental Fund Types And Expendable Trust Fund Combined Statement Of Revenues, Expenditures And Changes In Fund Balances - Budget And Actual - General, Special Revenue, Debt Service And Capital Projects Funds Combined Statement Of Revenues, Expenses And Changes In Fund Equity - All Proprietary Fund Types Combined Statement Of Cash Flows - All Proprietary Fund Types Notes to the Financial Statements: Note 1 Summary Of Significant Accounting Policies Note 2 Reporting Changes Note 3 Beginning Fund Balances/Equities Restated Note 4 Individual Fund Deficits Note 5 Cash And Investments Note 6 Accounts Receivable Note 7 Property Taxes Receivable Note 8 Due From Other Governmental Units Note 9 General Fixed Assets Note 10 Proprietary Fund Property, Plant And Equipment Note 11 Leases Note 12 Long-Term Obligations Note 13 Compensated Absences Note 14 Line Of Credit Note And Tax Anticipation Notes Note 15 Employee Retirement Plans Note 16 Deferred Compensation Plan Note 17 Contingent Liabilities Note 18 Interfund Receivables, Payables, Transfers Note 19 Risk Management Note 20 Disproportionate Share Settlement Note 21 Segment Information On Enterprise Funds Note 22 Patient Service Revenue Note 23 Construction And Other Significant Commitments Note 24 Contributed Capital Note 25 Excess Of Expenditures Over Budget In Individual Funds Note 26 Budgetary Basis Of Accounting Note 27 Subsequent Events Note 28 Municipal Landfill Closure And Postclosure Care Costs 6 8 10 12 13 17 22 23 23 23 25 25 25 25 26 27 28 33 33 34 40 40 41 42 43 43 44 44 45 45 46 46 47 Table of Contents (Continued) For the Fiscal Y e a r E n d e d J u n e 30, 1996 Page Note 29 Note 30 Other Post-Employment Benefits Residual Equity Transfers 48 49 Combining, Individual Fund And Account Group Statements And Schedules General Fund: Schedule Of Expenditures - Budget And Actual Special Revenue Funds: Combining Balance Sheet Combining Statement Of Revenues, Expenditures And Changes In Fund Balances Statement Of Revenues, Expenditures And Changes In Fund Balances Budget And Actual: Grants And Contracts Auto License Flood Control Fund Transportation Fund Air Pollution Fund Rabies/Animal Control Fund Public Health Fund Street Lighting Fund Library Fund Stadium District Fund Lake Pleasant Recreation Housing Authority Sheriff's Inmate Canteen Document Storage Probation Services Juvenile Probation Recorder's Surcharge Debt Service Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures And Changes In Fund Balances Statement Of Revenues, Expenditures And Changes In Fund Balance Budget and Actual: General Obligation Fund Special Assessment Fund Housing Authority Stadium District Capital Projects Funds: Combining Balance Sheet Combining Statement Of Revenues, Expenditures And Changes In Fund Balances Statement Of Revenues, Expenditures And Changes In Fund Balance Budget And Actual: Bond Funds Major League Stadium Intergovernmental Funds Schedule Of Capital Projects - Budget And Actual 53 58 62 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 85 86 87 88 89 90 93 94 95 96 97 98 Table of Contents (Continued) For t h e Fiscal Y e a r E n d e d J u n e 30, 1996 Page I i I I I i I i I Enterprise Funds: Combining Balance Sheet Combining Statement Of Revenues, Expenses And Changes In Fund Equity Combining Statement Of Cash Flows Schedule Of Operating Expenses By Department - Medical Center 106 108 110 112 Internal Service Funds: Combining Balance Sheet Combining Statement Of Revenues, Expenses And Changes In Fund Equity Combining Statement Of Cash Flows 116 118 120 Trust And Agency Funds: Combining Balance Sheet Combining Statement Of Changes In Assets And Liabilities 126 128 General Fixed Assets Account Group: Schedule Of General Fixed Assets By Function And Activity Schedule Of Changes In General Fixed Assets By Function And Activity 133 135 General Long Term Debt Account Group: Comparative Balance Sheets 139 Statistical Section General Revenue By Source - Last Ten Fiscal Years Schedule Of Expenditures/Expenses By Function - Last Ten Fiscal Years Tax Revenues By Source - Last Ten Fiscal Years Property Tax Levies And Collections - Last Ten Fiscal Years Property Tax Levies - All Jurisdictions - Last Ten Fiscal Years Assessed Value And Current Market Value Of All Taxable Property - Last Ten Fiscal Years Property Value, Construction And Bank Deposits - Last Ten Fiscal Years Property Tax Rates And Tax Levies - Direct And Overlapping Governments - All County Governments - Last Ten Fiscal Years Property Tax Rates And Tax Levies - Direct And Overlapping Governments - County Controlled Governments - Last Ten Fiscal Years Comparative Ratio Of Bonded Debt To Assessed Values And Bonded Debt Per Capita Last Ten Fiscal Years Computation Of Direct And Overlapping General Obligation Bonded Debt Statement Of Legal Debt Limit Ratio Of Annual General Obligation Debt Service Requirements - Last Ten Fiscal Years Revenue Bond Coverage - Maricopa County Stadium District Special Assessment Billings And Collections - Last Ten Fiscal Years Principal Taxpayers Schedule Of Insurance In Force Salaries And Blanket Bond Of Elected County Officials Miscellaneous Statistical Data 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 '1 i i I i i i iii ! N Maricopa C o u n t y Officials BOARD OF SUPERVISORS Ed King, Chairman, District 4 Tom Rawles, District 1 Don Stapley, District 2 Betsey Bayless, District 3 Mary Rose Garrido Wilcox, District 5 COUNTY ADMINISTRATIVE OFFICER David R. Smith CHIEF FINANCIAL OFFICER Deborah S. Larson iv ' I--I o ~1} ~ -~ -~ 0 o)~ ~ eu= "~.oo .o.~ (ti ~ O "~ ~.-~ ,=..o~11 ~ II II li II II Ir JJ II Jl ~ ~. ~ _~ ~ ._~ " ~11~.=;11~? I1~.~11 ~11~ :~ I I , , . U ~ l l ,,: ~ II I ? " ?l' , ",i" ,, ,,,, ,i, il~ I, ,' ' I .~" ~ ~' ~l[_r_j~[]__r_'?? ' ?l_~,]"L~ ; "~ ~" ~,."E ~ E <~ -I~ 0~ ~'~ ?:: ~ .E (~j= - 11 ? 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