Comprehensive annual financial report / Maricopa County, Arizona

              White Tank Mountain
Regional Park
Cave Creek
Recreation Area
Lake Pleasant
Regional Park
McDowell Mountain
Regional Park
Estrella Mountain
Regional Park
Usery Mountain
Recreation Area
San Tan Mountain
Regional Park
Adobe Dam
Recreation Area
Comprehensive Annual Financial Report
Maricopa County
Phoenix, Arizona
For The Fiscal Year
July 1, 1999 to June 30, 2000
Prepared By
Department of Finance
Tom Manos, Chief Financial Officer
This page intentionally left blank.
INTRODUCTORY SECTION
Table Of Contents
Listing Of Maricopa County Officials
Organizational Charts
Letter Of Transmittal
Certificate Of Achievement For Excellence
In Financial Reporting
Back of Introductory Section - Insert
Comprehensive Annual Financial Report
Table of Contents
For the Fiscal Year Ended June 30, 2000
i
Page
Introductory Section
Table of Contents i
Maricopa County Officials v
Organizational Charts vi
Letter of Transmittal viii
Certificate of Achievement for Excellence in Financial Reporting xxv
Financial Section
Independent Auditors’ Report 1
Maricopa County Citizen’s Audit Advisory Committee Letter 3
General Purpose Financial Statements:
Combined Balance Sheet - All Fund Types And Account Groups 8
Combined Statement Of Revenues, Expenditures And Changes In Fund Balances - All
Governmental Fund Types And Expendable Trust Fund 10
Combined Statement Of Revenues, Expenditures And Changes In Fund Balances - Budget
And Actual - General, Special Revenue, Debt Service And Capital Projects Funds 12
Combined Statement Of Revenues, Expenses And Changes In Fund Equity - All Proprietary
Fund Types 14
Combined Statement Of Cash Flows - All Proprietary Fund Types 15
Combining Statement Of Changes In Net Assets – Investment Trust Funds 16
Notes to the Financial Statements:
Note 1 Summary Of Significant Accounting Policies 19
Note 2 Reporting Changes 25
Note 3 Beginning Fund Equities Restated 26
Note 4 Individual Fund Deficits 26
Note 5 Deposits And Investments 26
Note 6 County Treasurer’s Investment Pool 28
Note 7 Accounts Receivable 29
Note 8 Property Taxes Receivable 29
Note 9 Due From Other Governmental Units 29
Note 10 Changes In General Fixed Assets 30
Note 11 Proprietary Fund Property, Plant And Equipment 30
Note 12 Employee Compensation Payable 31
Note 13 Long-Term Obligations 31
Note 14 Obligations Under Leases 37
Note 15 Municipal Landfill Closure And Postclosure Care Costs 39
Note 16 Risk Management 40
Note 17 Contingent Liabilities 41
Note 18 Contributed Capital 41
Note 19 Medical Center Operating Revenue 42
Note 20 Residual Equity Transfers 42
Note 21 Interfund Receivables, Payables, And Transfers 42
Note 22 Budgetary Basis of Accounting 44
Note 23 Disproportionate Share Settlement 44
Note 24 Segment Information On Enterprise Funds 45
Table of Contents (Continued)
For the Fiscal Year Ended June 30, 2000
ii
Page
Notes to the General Purpose Financial Statements: (Continued)
Note 25 Excess of Expenditures Over Budget In Individual Funds 45
Note 26 Construction and Other Significant Commitments 46
Note 27 Employee Retirement Plans 46
Note 28 Other Post-Employment Benefits 50
Combining, Individual Fund And Account Group Statements And Schedules
General Fund:
Schedule Of Expenditures – Budget And Actual 53
Special Revenue Funds:
Description Of All Special Revenue Funds 57
Combining Balance Sheet 62
Combining Statement Of Revenues, Expenditures And Changes In Fund Balances 74
Statement Of Revenues, Expenditures And Changes In Fund Balances -
Budget And Actual: Transportation 86
Flood Control 87
Adult Probation Grants 88
Human Services Grants 89
Public Health 90
Air Pollution 91
Juvenile Court Grants 92
CDBG Housing Trust 93
Library 94
Stadium District 95
Bank One Ballpark Operations 96
Animal Control 97
Adult Probation Services 98
Child Support Automation 99
Child Support Enhancement 100
Children’s Issues Education 101
Clerk of Court Grants 102
Conciliation Court Special 103
Correctional Health Grants 104
County Attorney Grants 105
County Attorney Special 106
Court Automation 107
Document Retrieval 108
Domestic Relations Education 109
Economic Development 110
Emergency Management 111
Expedited Child Support 112
Housing Department 113
Jail Operations 114
Justice Court Enhancement 115
Justice Court Grants 116
Justice Court Judicial Enhancement 117
Juvenile Probation 118
Juvenile Restitution 119
Table of Contents (Continued)
For the Fiscal Year Ended June 30, 2000
iii
Page
Special Revenue Funds (Continued):
Law Library 120
Old Courthouse 121
Palo Verde 122
Parks & Recreation Grants 123
Parks Enhancement 124
Parks Souvenir 125
Parks Lake Pleasant 126
Planning Grants 127
Planning and Development 128
Probate Programs 129
Public Defender Grants 130
Public Defender Training 131
Public Health Pharmacy 132
Recorder’s Surcharge 133
Research and Reporting 134
RICO 135
Sheriff Aviation 136
Sheriff Donations 137
Sheriff Grants 138
Sheriff Inmate Health Services 139
Sheriff Special Funding 140
Superior Court Grants 141
Superior Court Judicial Enhancement 142
Superior Court Special 143
Victim Location 144
Waste Tire Program 145
Debt Service Funds:
Combining Balance Sheet 149
Combining Statement of Revenues, Expenditures And Changes In Fund Balances 150
Statement Of Revenues, Expenditures And Changes In Fund Balances -
Budget and Actual: General Obligation Fund 151
Stadium District 152
Capital Projects Funds:
Combining Balance Sheet 156
Combining Statement Of Revenues, Expenditures And Changes In Fund Balances 158
Statement Of Revenues, Expenditures And Changes In Fund Balances -
Budget And Actual: Major League Stadium 160
Bank One Ballpark Project Reserve 161
Jail Construction Fund 162
Intergovernmental Funds 163
Schedule Of Capital Projects - Budget And Actual 164
Enterprise Funds:
Combining Balance Sheet 172
Combining Statement Of Revenues, Expenses And Changes In Fund Equity 174
Combining Statement Of Cash Flows 176
Schedule Of Operating Expenses By Department - Medical Center 178
Table of Contents (Continued)
For the Fiscal Year Ended June 30, 2000
iv
Page
Internal Service Funds:
Combining Balance Sheet 182
Combining Statement Of Revenues, Expenses And Changes In Fund Equity 184
Combining Statement Of Cash Flows 186
Trust And Agency Funds:
Combining Balance Sheet – All Trust And Agency Funds 192
Combining Schedule Of Changes In Assets And Liabilities – All Agency Funds 194
Combining Statement Of Net Assets – Investment Trust Funds 195
General Fixed Assets Account Group:
Schedule Of General Fixed Assets By Function And Activity 199
Schedule Of Changes In General Fixed Assets By Function And Activity 201
General Long-Term Debt Account Group:
Comparative Balance Sheets 205
Statistical Section
General Revenue By Source - Last Ten Fiscal Years 209
Schedule Of Expenditures/Expenses By Function - Last Ten Fiscal Years 210
Tax Revenues By Source - Last Ten Fiscal Years 211
Property Tax Levies And Collections - Last Ten Fiscal Years 212
Property Tax Levies - All Jurisdictions - Last Ten Fiscal Years 213
Assessed Value And Current Market Value Of All Taxable Property - Last Ten Fiscal Years 214
Property Value, Construction And Bank Deposits - Last Ten Fiscal Years 215
Property Tax Rates And Tax Levies - Direct And Overlapping Governments - All County
Governments – Last Ten Fiscal Years 216
Property Tax Rates And Tax Levies - Direct And Overlapping Governments – County
Controlled – Last Ten Fiscal Years 217
Comparative Ratio Of Bonded Debt To Assessed Values And Bonded Debt Per Capita - Last
Ten Fiscal Years 218
Computation Of Direct And Overlapping General Obligation Bonded Debt 219
Schedule Of Legal Debt Limit 220
Ratio Of Annual General Obligation Debt Service Requirements For General Bonded Debt
To Total General Expenditures - Last Ten Fiscal Years 221
Revenue Bond Coverage – Maricopa County Stadium District 222
Special Assessment Billings And Collections - Last Ten Fiscal Years 223
Principal Taxpayers 224
Schedule Of Insurance In Force 225
Salaries And Blanket Bond Of Elected County Officials 227
Cactus League Attendance 228
Miscellaneous Statistical Data 229
Narrative Information Regarding Cover 234
v
Maricopa County Officials
BOARD OF SUPERVISORS
Andrew Kunasek, Chairman, District 3
Don Stapley, District 2
Fulton Brock, District 1
Janice K. Brewer, District 4
Mary Rose Garrido Wilcox, District 5
¨¨¨
COUNTY ADMINISTRATIVE OFFICER
David R. Smith
¨¨¨
CHIEF FINANCIAL OFFICER
Tom Manos
Organizational Charts
vi
Board of Supervisors/ Board
of Directors for Flood Control,
Library and Stadium Districts
Board of Supervisors/ Board
of Directors for Flood Control,
Library and Stadium Districts
Superintendent of
Schools
Superintendent of
Schools
CCoonnsstatabbleless ( 2(233)) CCoouunnttyy AAttttoorrnneeyy SShheerirfifff RReeccoorrddeerr AAsssseessssoorr TTrreeaassuurreerr
Clerk of the Board
Deputy County Administrator
Elections S.T.A.R. Call Center
Maricopa County Citizens
Legal Defender
Indigent Representation
Court Appointed Counsel
Public Defender Maricopa Integrated Health System
Deputy County
Administrator
Management & Budget
Human Resources
Organizational Planning
& Training
Research & Reporting
General Government
Health Care Mandates
Medical Eligibility
Chief Health Services
Officer
Chief Public Works
Officer
Finance
Risk Management
Materials Management
Recreation Services
Library District
Public Fiduciary
Planning & Development
Community
Development
Public Health
Human Services
Medical Examiner
Correctional Health
Animal Control Services
Transportation
Flood Control District
Emergency
Management
Facilities Management
Equipment Services
Office of the C.I.O
Telecommunications
Criminal Justice Facilities
Elected/Court
Officials
Elected/Court
Officials Appointed
Housing
County Administrative Officer
Internal Audit
Chief Information
Officer
Chief Community
Services Officer
Chief Financial
Officer
Organizational Charts (Continued)
vii
Arizona Judicial Branch in Maricopa County
TTrriaial lC Coouurrtsts, ,M Maarricicooppaa C Coouunntyty
JJuuvveenniliele C Coouurrt t
CClelerrkk o of ft hthee S Suuppeerrioiorr C Coouurrt t
Superior Court Judges and
Commissioners
Superior Court Judges and
Commissioners
Juvenile Court Center Adult Probation Superior Court
Administration
Justice Court
Administration
MMaarricicooppaa C Coouunntyty J Juusstitcicee C Coouurrtsts
viii
Office of the
County Administrative Officer
Financial Resources
Management
October 20, 2000
The Honorable Board of Supervisors
Maricopa County
County Administration Building
301 W. Jefferson Street
Phoenix, AZ 85003
It is our pleasure to submit to you the Comprehensive Annual Financial Report of Maricopa
County for the year ended June 30, 2000. This report has been prepared in conformance with
generally accepted accounting principles as prescribed in pronouncements of the Governmental
Accounting Standards Board (GASB). It is a comprehensive presentation of the County’s
financial and operating activities during the past fiscal year. 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 shown in a manner designed to present fairly the financial position
and results of operations of the various funds and account groups of the County.
Financial Statement Presentation
This report is presented in three sections: the introduction, the financial section and the
statistical section. 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 auditor’s report, the general purpose financial statements,
including the notes, and the combining statements for all funds and account groups. The
Statistical Section includes various schedules and information regarding the finances,
economics and demographics of the County.
The Reporting Entity
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 types 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
ix
included in this report except to reflect amounts held in an agency capacity by the County
Treasurer. The reporting entity is further described in Note 1 to the financial statements.
Economic Condition and Outlook
Maricopa County ranks first in the nation for population change since April 1990, making it the
fastest growing county in the nation with a population over 2.9 million. Maricopa County is also
the 4th largest county in the nation in terms of population. More than half of the state of Arizona’s
population resides in Maricopa County.
Maricopa County is located in the central portion of the state with 9,222 square miles - which
includes 98 square miles of water - making it the 14th largest county in the United States. It is
also home to the nation’s largest regional park system measuring over 115,000 acres.
Maricopa County’s main economic sectors include services, trade and manufacturing.
According to the Arizona Department of Economic Security and U.S. Department of Labor
Statistics, high-tech manufacturing employment in 1999 as a percent of total manufacturing
employment in Maricopa County was 41.8% versus the United States average of 14.0%.
Maricopa County has been very successful in attracting high-tech manufacturing employment.
The March 22, 1999 Computer World magazine named Maricopa County (Phoenix metro area)
one of the nation’s top hiring locations for information technology jobs. Service industries,
construction and high-tech manufacturing pushed Arizona to the top spot in the nation for job
growth during the first half of 2000. Arizona produced 100,100 new jobs during the sixth-month
period, giving the state more than 2.2 million jobs overall. Arizona produced 4.7 percent more
nonagricultural jobs early this year compared to the same period in 1999, according to the
Western Blue Chip Economic Forecast, a survey of economists compiled by Bank One and
Arizona State University.
Maricopa County’s robust economy continues to expand. The County’s outlook remains positive
and growth appears to cover all aspects of the economy. In the eight years since the beginning
of the 1990’s, the County’s population grew more than 36% from 2.1 to 2.9 million. Maricopa
County is growing faster than any other county in the country according to the U.S. Bureau of the
Census. Figures from the U.S. Department of Commerce Bureau of Economic Analysis (BEA)
rank Arizona first among all 50 states in growth in real gross state product (GSP) – an inflation-adjusted
measure of "value added" in production. Based on figures from 1992 (the first year of
recovery from the recession of 1990-91) through 1998 (the latest year for which GSP estimates
are available), real GSP in Arizona grew 7.5% compared to 3.9% nationally. According to the
BEA, strength in high-tech manufacturing and in business services - two industries identified
with the New Economy – contributed to the rapid growth.
Even though the demand for services is high, the growth in our assessed valuation, state
assistance on the Arizona Long Term Care System (ALTCS), more efficient management of our
health system and continued fiscal discipline have allowed for a decrease in the property tax rate
in fiscal year (FY) 2000-01. This marks the second year in a row that the property tax rate has
experienced a decrease. Previously, the overall tax rate for Maricopa County of $1.6475 per
$100 of assessed valuation had been held flat for the last eight years. In FY 1999-00, the overall
tax rate was reduced by 2.27 cents. For FY 2000-01, the tax rate will be reduced by an
additional 5.0 cents to $1.5748.
x
Major Initiatives for Fiscal Year 1999-00
Managing for Results
Maricopa County’s Managing for Results initiative establishes a framework that integrates
planning, budgeting, reporting, evaluating and decision making. Managing for Results means
that the entire organization, its management system, its employees and the organizational
culture are focused on achieving results for the customer. This initiative establishes the
requirements and process to fulfill the County’s Mission and Vision of accountability to its
citizens.
Maricopa County’s accomplishments in Managing for Results over this past year have been
significant. A Managing for Results System has been created including a standardized strategic
planning process and a detailed “how to” Resource Guide. Every department/agency has a
trained strategic coordinator to support the development and maintenance of a strategic plan.
The Board of Supervisors has adopted a Managing for Results policy establishing this initiative
as a part of the budget process.
Human Resources Management
With a growing economy and low unemployment, Human Resources was focused on
recruitment and retention strategies. Over 35,000 employment applications were processed to
fill 6,300 positions. In addition to posting these jobs on the County's web site, we were
successful in recruiting from other web sites. Strategies were developed to recruit hard-to-fill
positions at professional conferences.
Employee Benefits also experienced the challenges of the marketplace with health and dental
insurance carriers. Our consumption continued to be higher than premiums paid. In order to
moderate the premium increases, the health plans were modified to provide more choices at
varying costs. To offset cost increases in the dental plans, the decision was made to self-insure
one of the two dental plans, effective January 1, 2001.
County employees continued to see their salaries more competitive with the local market.
During this third year of a broadbanding strategy, 14,000 salary advancements were processed
for equity, merit or position changes.
Comprehensive Master Space Planning
During Fiscal Year 1999-00, the Maricopa County Management Team developed a master space
plan for Maricopa County, which will cost-effectively handle county space needs to the year
2020. Department directors considered what programs and services will be delivered and how
they will be delivered. They determined how these programs will be staffed and where they will
be located. Master space plans were developed for downtown Phoenix, Maricopa Integrated
Health Systems, and the Durango complex. Based on the results of the 2020 master space
planning, long-range strategies have been developed. One of the recommendations of the 2020
master space plan was to develop a series of satellite service centers to provide County
services, including judicial services, closer to the citizens of Maricopa County. A consultant was
selected to further develop that concept and specific site recommendations will be submitted
prior to the end of 2000. Site acquisition and design could begin on two sites in 2001.
xi
The County took a major leap forward in implementing the 2020 master space plan by selecting
an architect to design the Plaza de Maricopa, a customer service center for downtown Phoenix,
to permit moving several departments from rental space into owned space and to increase the
convenience of one-stop service. The project is scheduled for completion by late 2003.
Construction began on a parking structure and customer service center for the Clerk of the
Superior Court located on Jackson Street; this project is scheduled for completion in early 2001.
Another result of the County’s space planning endeavors was the establishment of a Facilities
Review Committee by the Board of Supervisors to review all construction projects over $150,000
and all new office space leases.
Comprehensive Capital Improvement Program
To further address the County’s planning needs, a comprehensive five-year capital improvement
program has been developed. The plan will be financed through selling debt at competitive rates
and a structured repayment schedule that aligns with the County’s current budget and
forecasted resources. General Fund projects that will be undertaken in fiscal year 2000-01
include: a Medical Examiner building, a Public Health facility, planning for a downtown
administration building, justice court co-location, land acquisition, and the purchase of existing
buildings to replace leased space or antiquated existing County-owned buildings.
Jail and Detention Facilities
In November of 1998, the citizens approved a dedicated 1/5 of one-cent sales tax to fund the
construction and operation of adult and juvenile detention facilities (Proposition 400 - jail tax
initiative). This initiative will allow the County to relieve the overcrowding in our facilities, and
keep up with the growth expected as the population in Maricopa County continues to grow. A
programming study based on the Jail Master Plan was finalized in July 1999, which identified
specific facility and budget requirements. The following are the major Capital Improvement
Projects:
· 4th Avenue Jail: This new downtown jail facility will house 1,360 pre-trial maximum-security
inmates. It is a mid-rise building designed to be architecturally compatible with existing
buildings in the area. An underground tunnel will be constructed to connect this facility to the
existing tunnel system between Madison Street Jail, First Avenue Jail, and Superior Courts.
Construction will begin in the summer 2001 and be completed by the end of 2003.
· Jackson Street Garage: This design/build pilot project is currently underway. It is expected to
accommodate 1,800 vehicles, 800 of which are programmed for use of the new 4th Avenue
Jail. The Clerk of the Court Service Center will also be housed at this site. This project is
funded from a combination of General Fund and Jail Tax revenues. A contract has been
awarded and construction will be completed by May 2001.
· Lower Buckeye Jail: This campus totals 805,000 square feet. It will provide over 1,800 beds
for maximum, medium, and minimum-security adults, remanded juveniles, a psychiatric unit,
and an infirmary. Administrative support offices for jail command and Correctional Health
Services are also housed in this facility. This project will additionally provide central services
for the entire system. These services include a food factory, central warehouse, central
laundry, video visitation, inmate education, and library. Central Services construction will
begin in early 2001 and be completed by summer 2002. Construction of the detention
portion of the project will begin late spring 2001 and complete early summer, 2003.
xii
· Juvenile Detention and Courts: 220 new detention beds will be added at the Durango
Complex, with ancillary support services such as education, visitation, recreation, intake,
medical, and administration. A 48-bed residential treatment facility and a new 12-court
Juvenile Courthouse, with support space for Juvenile Court Administration, Clerk of the
Superior Court, County Attorney, Public Defender, and Probation will also be added. At the
Southeast Facility in Mesa, 120 beds will be added, with one courtroom addition, and a
parking structure for 400 spaces. Construction for all juvenile projects will be completed by
late 2003.
Maricopa Integrated Health System
During fiscal year 1999-00, Maricopa Integrated Health System (MIHS), under the leadership of
Quorum Health Resources, Inc. reported $18.1 million in net income, which is a $3.4 million
increase over the previous year. For the third year in a row, MIHS did not require an additional
County General Fund year-end deficit subsidy. The County will continue to improve the financial
management and customer satisfaction of the County health system. Ongoing efforts will be
made in deciding the best strategic option for the long-term direction of the health care system.
Procurement Practices
During Fiscal year 1999-00, the Maricopa County Procurement Code was revised to allow the
Materials Management Director to award contracts with values of $100,000 or less, and contract
terms of five years or less after competitive solicitation without requesting Board of Supervisors
approval. The Materials Management Director and the Maricopa County Integrated Health
System Chief Procurement Officer may exercise rights and provisions contained within original
contracts approved by the Board of Supervisors. These revisions will allow for a more efficient
procurement process for contracts with County vendors.
Year 2000 Results
Maricopa County has worked on Year 2000 Preparedness and Compliance issues since 1996,
when the first project leader was selected to commence research. The preparedness program
was one of the largest efforts undertaken by Maricopa County; all 54 County departments and
agencies were involved. The Y2K effort was separated into three distinct areas: information
technology, embedded systems, and the supply chain. The overall effort dealt with the correct
handling and processing of dates. Major activities included planning, inventory, scope review,
analysis, remediation, testing, implementation, contingency planning and documentation. With
the conclusion of the preparedness activities, each department/agency reaching Y2K
compliance submitted a Certificate of Compliance indicating Year 2000 Readiness. Overall
County compliance was 99.80%, with a total County expenditure of $12,346,000. The 1999
year-end rollover (December 31, 1999) and the leap-year rollover (February 29, 2000) were
completed with neither major outages nor interruption to business. County agencies were
encouraged to maintain their aggressive posture for disaster preparedness and contingency
planning.
xiii
For the Future...
Managing for Results
During 2000-01, efforts will continue on the Maricopa County’s Managing for Results initiative.
To fully integrate Managing for Results there is a great deal of work in progress including: a
complete redesign of the budget/accounting structure in order to capture costs at the activity
level; a redesign of the performance management system standardizing the system and aligning
every employee to activity results; development of a comprehensive data collection and reporting
system and an enhanced performance audit function.
In addition, Maricopa County continues to assess county preparedness for the managing for
results portion of the Governance Performance Project (GPP). The GPP is a partnership of
Governing Magazine, the Maxwell School of Citizenship and Public Affairs at Syracuse
University, and the Pew Charitable Trusts, that reviews and grades government entities on how
effectively they manage money, people, technology, and infrastructure. Efforts toward
performance measurement and performance based budgeting should prepare departments for
Governing Magazine’s grading of the County’s report scheduled for fiscal year 2002.
Human Resources Management
In order to be an active partner in the Managing for Results culture, Human Resources (HR) has
redefined its mission to state "to provide leadership and human resources systems and
programs to officials, departments and agencies so that they can achieve their business
results." The strategic goals are a mandate for change:
· By June 2002, internal customers will report that HR services and delivery methods have
been redefined and redesigned so that they meet the emerging business needs of their
department/agency.
· By 2003, HR will have implemented a responsive, flexible and competitive total
compensation and benefits program, managed within available resources, so that the
number of employees leaving voluntarily is reduced.
The Human Resources Department will demonstrate corporate leadership through performance
consulting and innovative transactional support as indicated by results achieved, customer
reporting and active partnership in department and strategic planning.
Comprehensive Master Space Planning, Comprehensive Capital Improvement Program,
Jail and Detention Facilities, and Maricopa Integrated Health System
Ongoing efforts in each of these areas will remain a strategic goal for Maricopa County for Fiscal
Year 2000-01. In addition, several new initiatives will be focused on during Fiscal Year 2000-01.
Narrative on some of these initiatives follows:
Criminal Justice System
As one of the largest segments of County operations, the Justice and Law Enforcement arena
has significant commitments to enhancing case processing. These efforts strive to resolve
cases expeditiously to ensure the efficient administration of justice. In turn, this helps lessen the
growth in the jail population, and maximizes staff and other resources throughout the system.
The County will be working towards proposing and securing enactment of all possible efficiency
improvements in the criminal justice system. This will include development of the integrated
justice information system, an improved audit function, and performance goals and measures
for the entire criminal justice system. Additional major strategies dealing with improving the
justice and law enforcement system include: expand juvenile and adult jail capacity and provide
xiv
related facilities (Proposition 400 - jail tax initiative); develop regional centers for courts not-of-record
and/or reduce transports to justice of the peace courts; implement differentiated case
management; eliminate unnecessary court proceedings; consolidate criminal divisions to a
common location; expand pretrial release supervision; enhance substance abuse evaluation and
programming; expand drug court; and expand community based programs for juveniles.
Electronic Procurement
Maricopa County has undertaken an initiative to study the potential for implementing an electronic
procurement system by July 1, 2001. With the assistance of a contract consultant, statutory
authority, policies, procedures and process are being analyzed and mapped to assist in making
changes to increase procurement effectiveness and reduce transaction costs. The consultant
will make a recommendation on the viability of implementing an electronic procurement system
by December 2000 based on the availability of applications that will fulfill the County's identified
needs. In conjunction with this initiative, the Director of Materials Management has been
appointed by the President of the Arizona State Senate as a representative on the Procurement
Reform Study Committee created by Senate Bill 1406. This committee is tasked with reviewing
current procurement statutory authority and making recommendations to increase the efficiency
and effectiveness of government procurement. These recommendations are to take into
consideration changes in the marketplace and technology. The committee's recommendations
are to be completed by December of 2000.
Medical Eligibility and Health Care Mandates
During Fiscal Year 2000-01, the County will continue to work towards implementing
management changes to the Departments of Medical Eligibility and Health Care Mandates to
comply with all AHCCCS requirements, eliminate sanctions, improve productivity, upgrade
technology, and maximize non-litigation resolution of health care providers. Specific goals of the
Departments include: complete a strategic plan with assistance from performance consultants;
reduce financial liability by improving timeliness of hospital determinations and determining
eligibility prior to client entry into the health care system; evaluate, develop, and/or procure
improved electronic systems; assist with legislative relief solutions; establish, maintain, and
enhance partnerships with external customers, e.g. AHCCCS, DES, medical providers; initiate a
unit cost study; develop and implement a plan for consolidation of community eligibility sites -
plan should also address enhancing outreach initiatives; re-engineer the eligibility work flow
processes to improve the timeliness and accuracy of determinations - share best practices
among all sites; and continue to reduce or eliminate the error rate sanctions by improving quality
initiatives.
Tobacco Settlement Funds
In mid-November of 1998, the media reported a proposed settlement, on a nationwide basis, of
the numerous tobacco lawsuits filed across the country against the tobacco industry. Forty-six
states (four had already settled) were given a one week “take-it or leave-it” offer to settle all past,
present and future claims by all public jurisdictions responsible for treating tobacco related
illness for a total of $206 billion. Because counties in Arizona have a statutory obligation to
provide for the health care of certain portions of the citizenry, including those suffering from the
effects of tobacco, the collective counties have embarked on a dual-track strategy of negotiating
with the State to apportion its share (now in excess of $3 billion) between the State and the
counties based on historic expenditures as part of the settlement while also preserving all legal
options in this matter as well.
xv
Service Efforts and Accomplishments:
Service efforts to shape and maintain Maricopa County as a sustainable community were made
in the past year. The following are some of the service efforts and accomplishments of County
staff during fiscal year 1999-00.
2000 National Association of Counties (NACO) Achievement Award Winners:
Department Program Title
Assessor Notice of Valuation Video
Attorney Victim Notification System
Clerk of the Court Family Ties and Knots
Finance & Internal Audit Self-Assessment Workshop for Employees with Cash
Handling Responsibilities
Materials Management Contract Monitoring Program
Human Services Medical & Dental Health Project
Human Services Dress for Success
Parks & Recreation Inter-Government Cooperation for San Tan Regional Park
Parks & Recreation Public/Private Partnership for Estrella Mountain Regional
Park and Phoenix International Raceway
The County has designed and implemented a number of unique approaches to address
pressing social concerns. For example, the Thomas J. Pappas School for Homeless Children
has been recognized on a national level for its valuable contributions to the area’s quality of life.
The Maricopa Medical Center has three areas of distinction, including the burn unit, the only
facility of its kind in the state. Other superior services are the pediatric intensive care unit and
the maternity ward. In addition, the organizations of Mothers Against Drunk Drivers and Parents
of Murdered Children recognized the County Attorney’s Office, Victim Witness Division for
Outstanding Community Service for their efforts during 1999-00.
Maricopa County’s Assessor’s Office is the first office in the nation that has over 98 percent of all
building permits submitted in a standardized format via an electronic transfer system from 25
different jurisdictions. They also established the first extensive Computer Assisted Mass
Appraisal (CAMA) department in the southwestern United States to rewrite the mass appraisal
regression model for Maricopa County. This has added superior uniformity and quality control
beyond what was previously available.
The County’s Information Technology Department earned the Dell Computer Corporation’s Best
Practices Award. This award highlighted the Department’s service and use of technology in both
the Recorder and Election Departments using technology to process early voting and document
images – Vote-By-Mail. The new, faster storage system implemented allowed the county to
process 195,000 ballots in a record 72 hours, compared to several weeks for a much lower
number of ballots in the 1996 election. The County experienced an increase of 400 percent in
the vote-by-mail program between 1996 and 1998. Early voting helped boost overall voter
turnout to 44 percent for the 1998 elections, compared to the national average of 36 percent. In
addition to being considered a best practice in the technology arena the system has received
prestigious recognition nationally. During April 2000, The Year 2000 Computerworld Smithsonian
Collection was formally presented to the Smithsonian's National Museum of American History,
xvi
and the Maricopa County Elections Department's Vote-By-Mail officially became a part of that
Permanent Research Collection on Information Technology.
FINANCIAL INFORMATION
Internal Controls
The management of Maricopa County is responsible for establishing and maintaining a system
of internal control. Internal accounting controls are designed to provide reasonable, but not
absolute assurance regarding: 1) the safeguarding of assets against loss from unauthorized use
or disposition; and 2) the reliability of financial records for preparing financial statements and
maintaining accountability for assets. The concept of reasonable assurance recognizes that: 1)
the cost of a control should not exceed the benefits likely to be derived; and 2) the evaluation of
costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. 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. Management and the accounting
staff periodically evaluate this internal control structure. 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 from this
report.
Budgetary Controls
The County also maintains budgetary controls. The objective of these controls is to ensure
compliance with budgetary and legal provisions embodied in the annual appropriated budget
approved by the Board of Supervisors. 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 year-end and are re-budgeted as needed in the next fiscal year.
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.
As demonstrated by the statements and schedules included in the financial section of this report,
the County continues to meet its responsibility for sound financial management.
General Government Functions
Governmental funds include general, special revenue, capital projects and debt service funds.
These funds are presented on the modified accrual basis of accounting. Revenues are
recognized when they are both measurable and available to finance current expenditures.
xvii
GOVERNMENTAL REVENUE SOURCES
The amounts of governmental fund revenues from various sources for the fiscal years 1999-00
and 1998-99 are shown below (in thousands):
Amount Percent of Total
Revenue Sources 2000 1999 Increase 2000 1999
Taxes $ 296,029 $273,423 $ 22,606 24% 26%
Licenses & Permits 22,187 17,068 5,119 2 2
Intergovernmental 783,238 659,409 123,829 64 62
Charges for Services 62,026 57,288 4,738 5 5
Fines & Forfeits 14,583 13,427 1,156 1 1
Miscellaneous 49,295 46,279 3,016 4 4
Total $1,227,358 $1,066,894 $ 160,464 100% 100%
During Fiscal Year 1999-00, the County experienced an increase in governmental revenues from
the previous year of $160.5 million, a 15.0 percent increase. The main source of this increase is
Intergovernmental revenue. The following narrative will provide information regarding the year to
year change for each revenue source.
Taxes
Assessed Valuations:
The primary valuation in 1999 increased by 9 percent to $17.5 billion and the secondary
valuation increased by 11.1 percent to $18.7 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.
Miscellaneous
4%
Fines & Forfeits
1%
Charges for Services
5%
Intergovernmental
64%
Licenses & Permits
2%
Taxes
24%
xviii
Property Tax Collections:
Current tax collections were 96.9 percent of the levy, increasing .2 percent from the
previous year. Total property tax collections were $277.5 million, approximately $21.5
million more than the previous year, due to an increase of $22.4 million in the levy.
Historically, collections against the year’s levy have been approximately 95.8 percent,
based on the last 10 years. The balance of the tax 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
declined $117,075 from the previous year to 8.9 million. Penalties and interest increased
$1.4 million from the previous year to $9.8 million.
Licenses & Permits
Fees levied for licenses and permits as authorized by Arizona Revised Statutes include
environmental permits ($6.6 million), building safety permits ($5.8 million), air pollution
permits ($4.4 million), animal licenses ($3.2 million), and others. Licenses and permits
increased by $5.1 million compared to the previous year due in part to a $3.2 million increase
in building safety permits.
Intergovernmental
Major items included in intergovernmental revenue during fiscal year 1999-00 are sales tax
($309.7 million), Jail Tax ($92.0 million), vehicle license tax ($94.4 million), highway user
revenue ($77.3 million), and Federal and State grants. The major factor driving the increase
in intergovernmental revenues ($123.8 million), is the $50.5 million increase in Jail Tax which
went into effect on January 1, 1999. It is being used to fund the construction and operation of
adult and juvenile detention facilities within Maricopa County. The remainder of the increase
in Intergovernmental revenue can be attributed to 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. This
allocation is based on a statutory formula that utilizes a county's population, assessed
value and location of actual sales tax receipts compared to the total of all of these for all
counties. Sales tax increased 10.4 percent over the previous year.
Jail Tax:
The County assesses a 0.2 per cent Jail Tax on all transactions subject to the State
Transaction Privilege Tax to fund the construction and operation of adult and juvenile
detention facilities. This tax became effective January 1, 1999. Total collections of this
tax increased from $41,480,614 in fiscal year 1998-99 to $91,984,716 in fiscal year 1999-
00.
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 16.5 percent over
the previous fiscal year.
xix
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 6.8
percent versus the previous fiscal year.
Charges for Services
County customers are charged for service provided based upon the cost of providing the
service. In fiscal year 1999-00, major items in this category included court fees ($10.7
million), recording fees ($10.6 million), probation service fees ($6.1 million), street lighting
assessments ($4.6 million), car rental surcharge ($5.7 million) and special law enforcement
($2.8 million). The total fiscal year 1999-00 charges for services increased $4.7 million or
8.3% mainly due to population growth.
Fines & Forfeits
The County assesses fines and forfeits in areas in which it is responsible for enforcing laws
and codes. Included in the $14.6 million is a total of $9.7 million in fines and forfeits collected
by the Justice Courts for traffic and misdemeanor fines. In addition, the Superior Court
collected $1.6 million in fines. Fiscal year 1999-00 experienced a $1.2 million increase over
the previous year primarily attributable to the Justice Courts.
Miscellaneous
Major items in the $49.3 million of miscellaneous revenues include interest income of $20.7
million, sales at the Sheriff’s Inmate Canteen of $7.8 million, $3.7 million of Bank One
BallPark Operations revenue and Flood Control land sales of $2.1 million.
GOVERNMENTAL EXPENDITURES BY FUNCTION
The amount of expenditures by function for fiscal years 1999-00 and 1998-99 are shown below
(in thousands):
Amount Increase Percent of Total
Function 2000 1999 (Decrease) 2000 1999
General Government $ 91,629 $ 92,527 $ (898) 8% 9%
Public Safety 422,454 364,824 57,630 39 34
Highways & Streets 55,450 52,048 3,402 5 5
Health, Welfare and Sanitation 278,987 353,141 (74,154) 25 33
Culture & Recreation 15,302 13,339 1,963 1 1
Education 17,854 13,627 4,227 2 1
Capital Outlay 181,401 149,600 31,801 17 14
Debt Service 31,717 33,085 (1,368) 3 3
Totals $1,094,794 $1,072,191 $ 22,603 100% 100%
xx
Expenditures for governmental fund types increased by $22.6 million or 2.1% from the prior year.
The following narrative will provide information regarding the year to year change for each
expenditure function.
General Government
During fiscal year 1999-00, General Government expenditures decreased minimally from the
previous year ($0.9 million). Some of the most significant expenditures within General
Government are for Facilities Management ($19.3 million), County Assessor ($13.7 million),
Elections ($6.0 million), Information Technology ($4.6 million), Treasurer ($3.1 million), and
Human Resources ($2.5 million). In addition, General Government absorbs centrally paid
costs for telecommunications ($5.9 million) and risk management ($6.0 million).
Public Safety
The major factors for the increase in Public Safety of $57.6 million during fiscal year 1999-00,
were the increases in the Sheriff’s Office ($11.4 million), Flood Control District ($10.1
million), Indigent Representation ($8.1 million), County Attorney’s Office ($4.7 million), the
Courts ($13.9 million) and various Special Revenue Grants ($6.0 million).
The increase in the Sheriff’s Office, County Attorney’s Office and Indigent Representation
was mainly due to increases in salaries. The increase in the Flood Control District
expenditures is due to a significant increase in participatory agreements for capital projects
with municipalities within the County. The increase in Special Revenue Grants was due to
increased federal funding.
Highways & Streets
The increase in Highways and Streets for fiscal year 1999-00 of $3.4 million occurred within
the Transportation Fund. This increase of 5 percent in expenditures coincides with the 6.8
percent increase in Highway user revenue versus the previous fiscal year.
Health, Welfare
& Sanitation
25%
Debt Service
3%
Capital Outlay
17% Culture &
Recreation
1%
Education
2%
Highways &
Streets
5%
Public Safety
Gen. 39%
Government
8%
xxi
Health, Welfare & Sanitation
Expenditures in Health, Welfare and Sanitation decreased by $74.1 million from the prior
year. This decrease can be attributed to the treatment of the transaction for the
Disproportionate Share Program. In the previous year the County’s payment to the State for
the Disproportionate Share Program was recorded and presented as a Health, Welfare and
Sanitation expenditure. For fiscal year 1999-00, this transaction has been recorded net of
proceeds from the Disproportionate Share Program, resulting in a $77.0 million reduction in
expenditures from the prior year.
Culture & Recreation
Expenditures in Culture and Recreation increased approximately $2.0 million during fiscal
year 1999-00. The majority of this increase is attributable to the $1.6 million increase in
expenditures for the Library District for the annual cost of the operation of the Southeast
Regional Library.
Education
The majority of the increase of $4.2 million in Education during fiscal year 1999-00 was due
to a $3.0 million increase in expenditures in Regional School District 509 (Thomas J. Pappas
School for Homeless Children).
Capital Outlay
Capital Outlay increased $32.2 million to $181.4 million during fiscal year 1999-00. The most
significant increases occurred in Flood Control, ($14.9 million), due to more available
funding, and in Jail Construction, ($14.8 million), due to planning related to the new jail and
detention facilities.
Debt Service
The decrease of $1.4 million in Debt Service expenditures compared to the previous year is
primarily due to a decrease in principal and interest payments related to the Stadium District
Bonds.
Governmental Fund Balance
Fund balance reflects the excess of revenues over expenditures and other changes in financial
reserves. For fiscal year 1999-00 total fund balance for the all governmental funds increased
$129.6 million to end the year at $461.8 million.
Proprietary Operations
The County’s five enterprise funds provide healthcare and solid waste disposal services.
Combined Enterprise Funds total fund equity increased from $98.2 million in 1999 to $116.3
million in 2000, a 18.4 percent increase. With the exception of the Medical Center, which
received a payment from the General Fund for their teaching program of $3,547,896, and Pre-
AHCCCS claims of $6,660,000, and the Non-AHCCCS Health Plan that received a Sail grant
matching subsidy of $616,200, all enterprise funds are self-supporting.
The Combined Internal Service Funds total fund deficit improved minimally from $15.6 million in
1999 to $15.2 million in 2000. Total fund equity is in a deficit position due to management’s
decision to not fully fund the liability for incurred but not reported claims in the Risk Management
Fund.
xxii
Debt Administration
Maricopa County received rating upgrades from Fitch IBCA (AA) and Moody’s Investors Service
in May of 2000 (Aa3). Moody’s Investors Service Press Release dated May 26, 2000, states that
the bond upgrade “reflects improvement in the county’s financial position, due to the continuation
of conservative fiscal strategies and the elimination of non-service support of the county
hospital”. The Aa3 rating also reflects the county’s large and diverse economic base, which
continues to experience significant growth, and the county’s low debt position.” The upgrade
from Moody’s Investors Services follows an upgraded debt rating for Maricopa County’s general
obligation bonds from Moody’s Investors Services from A2 to A1 in November 1998.
Outstanding general obligation bonds at June 30, 2000, totaled $79,595,000.
The ratio of net direct bonded debt to assessed valuation and the amount of bonded debt per
capita are useful indicators of the County’s debt position, and are used by management,
citizens, and investors. Net bonded debt is the total general obligation bonded debt (less fund
balance reserved for debt service) supported by secondary property taxes. This data as of June
30, 2000, and 1999 was as follows.
June 30, 2000 June 30, 1999
Net Direct Bonded Debt (in
thousands)
$ 79,595 $ 98,670
Net Direct Bonded Debt per capita $ 27.64 $ 35.16
Ratio of Net Direct Bonded Debt to
Secondary Assessed Valuation .43% .59%
More detailed information about outstanding bonds can be found in the notes to the financial
satements and statistical section of this report.
Cash Management
The Maricopa County Treasurer is responsible for investing cash from the county, schools, and
special districts. The Arizona Revised Statutes for investment of public monies provides
guidance to the Treasurer. The investment practice is to minimize credit and market risks while
maintaining a competitive yield on its portfolio. The effective annual yield on investments for
fiscal year 2000 was 5.23%.
Interest earned by County funds is apportioned quarterly based on the average daily cash
balance.
Risk Management
The County is exposed to various risks of loss related to general and auto liability, property,
aviation liability, medical malpractice, and workers compensation. The County is self-insured for
the first $1,000,000 per occurrence of general and auto liability, $1,000,000 per occurrence of
medical malpractice, and $250,000 per occurrence of workers compensation. Coverage in
excess of these respective amounts is provided through the purchase of commercial insurance.
During the fiscal year ending June 30, 2000, there was no significant reduction in excess
insurance coverage. Settled claims have not exceeded the County’s commercial insurance
coverage limits over the past three fiscal years.
xxiii
Maricopa County has a safety program that promotes employee safety on the job and focuses
on risk control techniques designed to minimize accident-related losses. In addition to the safety
program’s preventative measures, the Risk Management Department investigates every claim
and arbitrates each loss in order to minimize the County’s liability exposure.
Fiduciary Operations
Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement
of operations. The principal Agency Funds are Property Tax Collection and Special Purpose
Funds. In addition, the County manages Investment Trust Funds under the direction of the
County Treasurer. These funds invest cash held by the County for other governments as well
as cash held by funds within the County.
OTHER INFORMATION
Independent Audit
State law requires the State Auditor General to conduct financial audits of the accounts and
records of County and State agencies. The examination is conducted in accordance with
generally accepted governmental auditing standards, and the Auditor’s Opinion is included as
part of this report.
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 to 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 plus new construction 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 the fiscal year ended June 30, 1999.
This was the eleventh consecutive year that the government has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
satisfied both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
xxiv
Acknowledgment
The preparation of this report could not be accomplished without the efficient and dedicated
services of the Department of Finance staff, the assistance of administrative personnel in the
various departments, and the competent service of the State Auditor General’s Office. We
appreciate all of those who assisted in and contributed to the preparation of this report. We also
wish to express our sincere appreciation to the Board of Supervisors for their support in planning
and overseeing the financial operations of the County in a responsible and progressive manner.
Respectfully submitted,
David R. Smith Tom Manos
County Administrative Officer Chief Financial Officer
XXV
xxvi
This page intentionally left blank.
FINANCIAL SECTION
Independent Auditors’ Report
Audit Committee Letter
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
xxviii
Back of Financial Section - Insert
4
This page intentionally left blank.
Financial Section
General Purpose Financial Statements
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.
6
BACK of General Purpose Financial Statement TAB
7
This page intentionally left blank.
Combined Balance Sheet
All Fund Types And Account Groups
As of June 30, 2000
8
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
ASSETS AND OTHER DEBITS
Cash in bank and on hand $ 86,139 $ 12,571,822 $ $ 100
Cash and investments held by County Treasurer 25,375,011 133,873,493 24,573,067 149,663,844
Cash and investments held by trustee 7,596,720 102,309 1,641,603 9,241,341
Receivables (net of allowances for uncollectibles):
Taxes 5,143,264 1,202,557 520,129
Accounts
Accrued interest 2,021,895 1,428,798 1,159,189
Special assessments 823,040
Due from other funds 75,378,475 944,339 2,982
Due from other governmental units 74,150,888 71,646,247 39,624
Inventory of supplies 2,121,165 868,650
Prepaids
Miscellaneous 380,964 2,254,922 1,140,476
Property, plant and equipment
Accumulated depreciation
Amount available for retirement of long-term debt
Amount to be provided for retirement of long-term debt
Total assets and other debits $ 192,254,521 $ 224,893,137 $ 27,560,821 $ 161,244,574
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
Vouchers payable $ 13,832,631 $ 35,255,105 $ $ 4,433,263
Employee compensation 7,371,495 5,959,979 11,210
Accrued liabilities 1,538,352 5,130,696 450
Due to other funds 10,287,094 2,268
Due to other governmental units 4,816,133 7,784,847
Deferred revenue 3,891,255 14,795,861 1,142,448
Deposits held for other parties 1,643,213
Interest payable 4,180,426
General obligation bonds payable 20,315,000
Stadium District revenue bonds payable 800,000
Stadium District debt with governmental commitment 900,000
Special assessment debt with governmental commitment 70,060
Housing Department bonds payable
Housing Department loans payable
Capital leases payable
Certificates of participation payable
Claims and judgements payable
Liability for reported and incurred but not reported claims
Total liabilities 31,449,866 80,856,795 27,407,934 4,447,191
Equity and other credits:
Contributed capital
Investment in general fixed assets
Retained earnings (deficits):
Unreserved
Fund balances:
Reserved for inventory of supplies 2,121,165 868,650
Reserved for capital lease expenditures 4,247,293
Reserved for debt service 152,887
Reserved for investment trust participants
Unreserved 154,436,197 143,167,692 156,797,383
Total equity and other credits 160,804,655 144,036,342 152,887 156,797,383
Total liabilities, equity and other credits $ 192,254,521 $ 224,893,137 $ 27,560,821 $ 161,244,574
The accompanying notes are an integral part of these financial statements.
9
PROPRIETARY FIDUCIARY TOTALS
FUND TYPES FUND TYPE ACCOUNT GROUPS (MEMORANDUM ONLY)
INTERNAL TRUST AND GENERAL GENERAL
ENTERPRISE SERVICE AGENCY FIXED ASSETS LONG-TERM DEBT JUNE 30, 2000
$ 1,275 $ 164,199 $ 38,726,415 $ $ $ 51,549,950
157,628,704 23,315,816 1,443,058,315 1,957,488,250
5,150,644 2,347,238 26,079,855
6,865,950
30,965,149 30,965,149
735,598 240,747 14,096,367 19,682,594
823,040
659,935 76,985,731
2,340,219 19,342 115,394 148,311,714
2,927,317 1,724,817 7,641,949
2,413,430 652,255 3,065,685
3,944 3,780,306
152,497,557 9,084,036 1,023,841,892 1,185,423,485
(82,259,368) (5,433,144) (87,692,512)
152,887 152,887
271,250,733 271,250,733
$ 272,404,469 $ 32,115,306 $ 1,496,656,426 $ 1,023,841,892 $ 271,403,620 $ 3,702,374,766
$ 16,903,410 $ 1,910,558 $ 349,904 $ $ $ 72,684,871
4,838,759 576,330 27,084,256 45,842,029
18,869,549 1,090,112 26,629,159
62,955,407 543,030 3,197,932 76,985,731
3,288,904 11,176,915 27,066,799
19,829,564
80,299,933 81,943,146
4,180,426
79,595,000 99,910,000
27,704,259 28,504,259
28,225,000 29,125,000
659,388 729,448
95,975 95,975
1,976,984 1,976,984
608,794 18,121,511 18,730,305
5,666,171 17,222,210 22,888,381
70,719,037 70,719,037
42,964,831 43,199,791 86,164,622
156,095,825 47,319,821 95,024,684 271,403,620 714,005,736
93,468,652 19,632,407 113,101,059
1,023,841,892 1,023,841,892
22,839,992 (34,836,922) (11,996,930)
2,989,815
4,247,293
152,887
1,401,326,477 1,401,326,477
305,265 454,706,537
116,308,644 (15,204,515) 1,401,631,742 1,023,841,892 2,988,369,030
$ 272,404,469 $ 32,115,306 $ 1,496,656,426 $ 1,023,841,892 $ 271,403,620 $ 3,702,374,766
Combined Statement Of Revenues, Expenditures
And Changes In Fund Balances
All Governmental Fund Types And Expendable Trust Fund
For the Fiscal Year Ended June 30, 2000
10
GOVERNMENTAL FUND TYPES
SPECIAL DEBT CAPITAL
GENERAL REVENUE SERVICE PROJECTS
REVENUES
Taxes $ 222,975,967 $ 52,044,545 $ 21,008,968 $
Licenses and permits 271,025 21,915,996
Intergovernmental 402,400,291 379,977,697 859,370
Charges for services 20,744,303 40,987,616 280,976 13,389
Fines and forfeits 10,871,790 3,711,582
Miscellaneous 15,281,194 27,655,074 570,601 5,788,570
Total revenues 672,544,570 526,292,510 21,860,545 6,661,329
EXPENDITURES
Current:
General government 88,342,570 3,286,559
Public safety 202,194,917 220,258,774
Highways and streets 55,450,402
Health, welfare and sanitation 186,759,849 92,227,337
Culture and recreation 1,334,263 13,968,500
Education 1,353,609 16,499,854
Capital outlay 32,223,642 119,333,888 29,843,358
Debt service:
Principal retirement 23,808,586
Interest charges 7,908,121
Total expenditures 512,208,850 521,025,314 31,716,707 29,843,358
Excess (deficiency) of revenues over expenditures 160,335,720 5,267,196 (9,856,162) (23,182,029)
OTHER FINANCING SOURCES (USES)
Operating transfers in 633,662 95,052,830 8,623,900 154,849,043
Operating transfers out (151,792,199) (116,701,994)
Proceeds of capital leases 4,542,153
Total other financing sources (uses) (146,616,384) (21,649,164) 8,623,900 154,849,043
Excess (deficiency) of revenues and other sources
over expenditures and other uses 13,719,336 (16,381,968) (1,232,262) 131,667,014
Fund balances at beginning of year 145,038,481 160,600,449 1,385,149 25,130,369
Decrease in reserve for inventory of supplies (199,549) (182,139)
Increase in reserve for capital lease expenditures 2,246,387
Residual equity trans fer in 34,121,505
Residual equity transfer out (34,121,505)
Fund balances at end of year $ 160,804,655 $ 144,036,342 $ 152,887 $ 156,797,383
The accompanying notes are an integral part of these financial statements.
11
FIDUCIARY TOTALS
FUND TYPE (MEMORANDUM ONLY)
EXPENDABLE
TRUST JUNE 30, 2000
$ $ 296,029,480
22,187,021
783,237,358
62,026,284
14,583,372
204,156 49,499,595
204,156 1,227,563,110
91,629,129
422,453,691
55,450,402
35,000 279,022,186
10,680 15,313,443
17,853,463
181,400,888
23,808,586
7,908,121
45,680 1,094,839,909
158,476 132,723,201
259,159,435
(268,494,193)
4,542,153
(4,792,605)
158,476 127,930,596
146,789 332,301,237
(381,688)
2,246,387
34,121,505
(34,121,505)
$ 305,265 $ 462,096,532
Combined Statement Of Revenues, Expenditures
And Changes In Fund Balances
Budget And Actual - General, Special Revenue, Debt Service And
Capital Projects Funds
For the Fiscal Year Ended June 30, 2000
12
GENERAL FUND SPECIAL REVENUE FUNDS
BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE
REVENUES
Taxes $ 222,351,740 $ 222,975,967 $ 624,227 $ 53,117,699 $ 52,044,545 $ (1,073,154)
Licenses and permits 45,000 271,025 226,025 18,543,522 21,915,996 3,372,474
Intergovernmental 368,187,558 402,400,291 34,212,733 389,166,158 368,083,981 (21,082,177)
Charges for services 18,492,285 20,744,303 2,252,018 35,669,878 33,827,136 (1,842,742)
Fines and forfeits 9,970,000 10,871,790 901,790 1,485,800 3,711,582 2,225,782
Miscellaneous 12,905,483 15,281,194 2,375,711 20,269,974 26,304,439 6,034,465
Total revenues 631,952,066 672,544,570 40,592,504 518,253,031 505,887,679 (12,365,352)
EXPENDITURES
Current:
General government 128,706,892 95,197,616 33,509,276 4,974,487 3,285,621 1,688,866
Public safety 206,147,639 202,194,917 3,952,722 240,114,089 215,799,390 24,314,699
Highways and streets 42,942,854 55,450,402 (12,507,548)
Health, welfare and sanitation 256,678,300 242,255,649 14,422,651 108,744,801 92,227,337 16,517,464
Culture and recreation 1,336,056 1,334,263 1,793 14,137,483 13,439,124 698,359
Education 1,405,955 1,353,609 52,346
Capital outlay 33,441,539 27,681,489 5,760,050 168,120,289 119,078,622 49,041,667
Debt service:
Principal retirement
Interest charges
Total expenditures 627,716,381 570,017,543 57,698,838 579,034,003 499,280,496 79,753,507
Excess (deficiency) of revenues
over expenditures 4,235,685 102,527,027 98,291,342 (60,780,972) 6,607,183 67,388,155
OTHER FINANCING SOURCES (USES)
Operating transfers in 62,689,415 62,984,508 295,093 88,890,845 95,052,830 6,161,985
Operating transfers out (138,029,946) (151,792,199) (13,762,253) (121,202,529) (116,701,994) 4,500,535
Total other financing sources (uses) (75,340,531) (88,807,691) (13,467,160) (32,311,684) (21,649,164) 10,662,520
Excess (deficiency) of revenues and other
sources over expenditures and other uses (71,104,846) 13,719,336 84,824,182 (93,092,656) (15,041,981) 78,050,675
Fund balances at beginning of year 71,304,846 145,038,481 73,733,635 133,928,793 154,812,835 20,884,042
Increase (decrease) in reserve for inventory
of supplies (199,549) (199,549) (143,143) (143,143)
Fund balances at end of year $ 200,000 $ 158,558,268 $ 158,358,268 $ 40,836,137 $ 139,627,711 $ 98,791,574
The accompanying notes are an integral part of these financial statements.
13
TOTAL
DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS (MEMORANDUM ONLY)
BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE
$ 20,903,863 $ 21,008,968 $ 105,105 $ $ $ $ 296,373,302 $ 296,029,480 $ (343,822)
18,588,522 22,187,021 3,598,499
8,186,000 859,370 (7,326,630) 765,539,716 771,343,642 5,803,926
54,162,163 54,571,439 409,276
11,455,800 14,583,372 3,127,572
400,000 570,601 170,601 2,350,000 5,748,233 3,398,233 35,925,457 47,904,467 11,979,010
21,303,863 21,579,569 275,706 10,536,000 6,607,603 (3,928,397) 1,182,044,960 1,206,619,421 24,574,461
133,681,379 98,483,237 35,198,142
446,261,728 417,994,307 28,267,421
42,942,854 55,450,402 (12,507,548)
365,423,101 334,482,986 30,940,115
15,473,539 14,773,387 700,152
1,405,955 1,353,609 52,346
96,248,115 29,843,358 66,404,757 297,809,943 176,603,469 121,206,474
22,015,000 23,600,426 (1,585,426) 22,015,000 23,600,426 (1,585,426)
9,428,470 7,843,043 1,585,427 9,428,470 7,843,043 1,585,427
31,443,470 31,443,469 1 96,248,115 29,843,358 66,404,757 1,334,441,969 1,130,584,866 203,857,103
(10,139,607) (9,863,900) 275,707 (85,712,115) (23,235,755) 62,476,360 (152,397,009) 76,034,555 228,431,564
7,534,746 8,623,900 1,089,154 154,931,875 154,849,043 (82,832) 314,046,881 321,510,281 7,463,400
(259,232,475) (268,494,193) (9,261,718)
7,534,746 8,623,900 1,089,154 154,931,875 154,849,043 (82,832) 54,814,406 53,016,088 (1,798,318)
(2,604,861) (1,240,000) 1,364,861 69,219,760 131,613,288 62,393,528 (97,582,603) 129,050,643 226,633,246
2,548,314 1,240,000 (1,308,314) 25,370,624 24,912,935 (457,689) 233,152,577 326,004,251 92,851,674
(342,692) (342,692)
$ (56,547) $ $ 56,547 $ 94,590,384 $ 156,526,223 $ 61,935,839 $ 135,569,974 $ 454,712,202 $ 319,142,228
Combined Statement Of Revenues, Expenses
And Changes In Fund Equity
All Proprietary Fund Types
For the Fiscal Year Ended June 30, 2000
14
TOTALS
PROPRIETARY FUND TYPES (MEMORANDUM ONLY)
INTERNAL
ENTERPRISE SERVICE JUNE 30, 2000
OPERATING REVENUES
Net patient service revenue $ 157,286,802 $ $ 157,286,802
Charges for services 387,932,964 87,758,508 475,691,472
Other 15,645,453 392,504 16,037,957
Total operating revenues 560,865,219 88,151,012 649,016,231
OPERATING EXPENSES
Personal services 109,481,192 6,628,033 116,109,225
Supplies 35,681,804 6,408,788 42,090,592
Medical services 356,683,727 356,683,727
Other services 37,989,771 3,670,501 41,660,272
Legal 5,515,301 5,515,301
Insurance 342,569 54,305,170 54,647,739
Leases and rentals 3,306,914 1,144,824 4,451,738
Repairs and maintenance 2,489,754 3,346,329 5,836,083
Travel and transportation 428 97,435 97,863
Utilities 3,720,252 4,299,278 8,019,530
Depreciation 8,166,068 578,926 8,744,994
Miscellaneous 4,945,592 1,435,199 6,380,791
Total operating expenses 562,808,071 87,429,784 650,237,855
Operating income (loss) (1,942,852) 721,228 (1,221,624)
NON-OPERATING REVENUES (EXPENSES)
Grant revenues 5,073,775 46,832 5,120,607
Interest income 8,341,509 1,033,844 9,375,353
Interest expense (2,669,572) (20,902) (2,690,474)
Loss on disposal of fixed assets (12,884) (370,675) (383,559)
Net non-operating revenues 10,732,828 689,099 11,421,927
Net income before operating transfers 8,789,976 1,410,327 10,200,303
OPERATING TRANSFERS
Transfers in 10,824,101 10,824,101
Transfers out (1,489,343) (1,489,343)
Net income (loss) 18,124,734 1,410,327 19,535,061
Fund equities (deficit) at beginning of year – as restated 98,183,910 (15,562,347) 82,621,563
OTHER CHANGES IN FUND EQUITIES
Net residual equity transfers (34,121,505) (34,121,505)
Increase in contributed capital 34,121,505 34,121,505
Transfer to General Fixed Assets Account Group (1,052,495) (1,052,495)
Fund equities (deficits) at end of year $ 116,308,644 $ (15,204,515) $ 101,104,129
The accompanying notes are an integral part of these financial statements.
Combined Statement Of Cash Flows
All Proprietary Fund Types
For the Fiscal Year Ended June 30, 2000
15
TOTALS
PROPRIETARY FUND TYPES (MEMORANDUM ONLY)
INTERNAL
ENTERPRISE SERVICE JUNE 30, 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) $ (1,942,852) $ 721,228 $ (1,221,624)
Adjustments to reconcile operating income (loss) to net cash provided by
operating activities:
Depreciation 8,166,068 578,926 8,744,994
Changes in assets and liabilities:
Increase in:
Accounts receivable (5,337,976) (5,337,976)
Due from other governmental units (19,342) (19,342)
Inventory of supplies (766,267) (388,553) (1,154,820)
Prepaids (544,489) (544,489)
Employee compensation 670,453 670,453
Accrued liabilities 299,829 299,829
Due to other funds 202,275 202,275
Due to other governmental units 3,288,904 3,288,904
Liability for reported and incurred but not reported claims 5,704 2,251,654 2,257,358
Decrease in:
Accounts receivable 83,225 83,225
Due from other funds 1,618,745 1,618,745
Due from other governmental units 20,380,682 20,380,682
Prepaids 28,459 28,459
Miscellaneous 10,415,546 10,415,546
Vouchers payable (13,933,104) (267,764) (14,200,868)
Employee compensation (153,972) (153,972)
Accrued liabilities (245,102) (245,102)
Due to other funds (5,575,715) (5,575,715)
Net cash provided by operating activities 14,581,852 4,954,710 19,536,562
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Grants received 5,073,775 46,832 5,120,607
Operating transfers from other funds 10,824,101 10,824,101
Operating transfers to other funds (1,489,343) (1,489,343)
Interest expense (2,669,572) (20,902) (2,690,474)
Net cash provided by non-capital financing activities 11,738,961 25,930 11,764,891
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition of fixed assets (11,083,996) (2,878,234) (13,962,230)
Proceeds from sale of certificates of participation 5,300,000 5,300,000
Capital lease payments (516,364) (516,364)
Certificate of participation payments (692,403) (692,403)
Net cash used for capital and related financing activities (6,992,763) (2,878,234) (9,870,997)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 8,623,575 984,609 9,608,184
Proceeds from sale of investments held by trustee 2,363,476 2,363,476
Purchase of investments held by trustee (2,347,238) (2,347,238)
Net cash provided by investing activities 8,623,575 1,000,847 9,624,422
Net increase in cash and cash equivalents 27,951,625 3,103,253 31,054,878
Cash and cash equivalents, July 1, 1999 134,828,998 20,376,762 155,205,760
Cash and cash equivalents, June 30, 2000 $ 162,780,623 $ 23,480,015 $ 186,260,638
SCHEDULE OF NONCASH INVESTING, CAPITAL AND FINANCING
Transfer of equipment to General Fixed Assets Account Group $ $ (1,052,495) $ (1,052,495)
Restatement of July 1, 1999 accrued liabilities and retained earnings 3,769,223 3,769,223
Deletion of equipment (24,737) (745,116) (769,853)
Elimination of accumulated depreciation related to deletions 11,853 374,441 386,294
Loss on disposal of fixed assets 12,884 370,675 383,559
Residual equity transfer out to the General Fund resulting in an increase
of due to other funds. Cash will be transferred in fiscal year 2000-01. (34,121,505) (34,121,505)
Increase in contributed capital due to a residual equity transfer from the
General Fund resulting in a decrease of due to other funds. Cash will
be transferred in fiscal year 2000-01. 34,121,505 34,121,505
The accompanying notes are an integral part of these financial statements.
Combining Statement Of Changes In Net Assets
Investment Trust Funds
For the Fiscal Year Ended June 30, 2000
16
TREASURER’S INDIVIDUAL
INVESTMENT INVESTMENT
POOL ACCOUNTS TOTAL
Additions:
Contributions from participants $3,922,068,543 $ $ 3,922,068,543
Investment income:
Interest income 60,167,964 60,167,964
Net increase (decrease) in fair value of
investments
(2,777,771) 13,490 (2,764,281)
Net investment income 57,390,193 13,490 57,403,683
Total additions 3,979,458,736 13,490 3,979,472,226
Deductions:
Distributions to participants 3,919,122,208 15,299,622 3,934,421,830
Total deductions 3,919,122,208 15,299,622 3,934,421,830
Net increase (decrease) in net assets 60,336,528 (15,286,132) 45,050,396
Net assets held in trust:
July 1, 1999 1,254,572,000 101,704,081 1,356,276,081
June 30, 2000 $1,314,908,528 $ 86,417,949 $ 1,401,326,477
The accompanying notes are an integral part of these financial statements.
Financial Section
General Purpose Financial Statements - Notes
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.
18
Back of General Purpose Financial Statements - Notes - TAB
Maricopa County
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2000
19
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. Reporting 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, and so data
from these units is 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 a fiduciary capacity by the County Treasurer.
The Blended Component Units are as follows:
Maricopa County Flood Control District
The Maricopa County Flood Control District is a legally separate entity that provides flood control
facilities and regulates floodplains and drainage to prevent flooding of property in Maricopa County. As
the County Board of Supervisors serves as the Board of Directors of the Flood Control District, the
District is considered a component unit of the County. The District’s activities are reported in the
Special Revenue Funds and its fixed assets are reported in the General Fixed Assets Account Group.
Maricopa County Library District
The Library District is a legally separate entity that provides and maintains library services for the
residents of Maricopa County. As the County Board of Supervisors serves as the Board of Directors of
the Library District, the District is considered a component unit of the County. The District’s activities
are reported in the Special Revenue Funds and its fixed assets are reported in the General Fixed
Assets Account Group.
Notes to the Financial Statements
(Continued)
20
Maricopa County Stadium District
The Stadium District is a legally separate entity that provides regional leadership and fiscal resources to
assure the presence of Major League Baseball in Maricopa County. As the County Board of
Supervisors serves as the Board of Directors of the Maricopa County Stadium District, the District is
considered a component unit of the County. The District’s activities are reported in the Special
Revenue, Debt Service, and Capital Projects Funds and its fixed assets and long-term liabilities are
reported in the General Fixed Assets and General Long-Term Debt Account Groups.
Maricopa County Special Assessment Districts
The Special Assessment Districts are legally separate entities that provide improvements to various
properties within the County. As the County Board of Supervisors serves as the Board of Directors of
the Maricopa County Special Assessment Districts, the Districts are considered a component unit of
the County. The Districts’ activities are reported in the Debt Service Funds and their long-term liabilities
are reported in the General Long-Term Debt Account Group.
Maricopa County Street Lighting Districts
The Street Lighting Districts are legally separate entities that provide street lighting in areas of the
County that are not under local city jurisdictions. As the County Board of Supervisors serves as the
Board of Directors of the Maricopa County Street Lighting Districts, the Districts are considered a
component unit of the County. The Districts’ activities are reported in the Special Revenue Funds.
Complete financial statements of the Maricopa County Stadium District may be obtained at the entity’s
administrative office listed below:
Maricopa County Stadium District
Bank One Ballpark
401 East Jefferson
Phoenix, Arizona 85004
Separate financial statements of the remaining blended component units are not prepared.
Related Organization
The Industrial Development Authority of Maricopa County (Authority) is a legally separate entity that was
created to promote industry and develop trade by inducing manufacturing, industrial and commercial
enterprises to locate to Maricopa County. The Authority issues bonds for which the proceeds are lent to
qualified businesses to finance projects located within the County. The County Board of Supervisors
appoints the Authority’s Board of Directors. However, the Authority’s operations are completely
separate from the County and the County is not financially accountable for the Authority. Therefore, the
financial activities of the Authority have not been included in the accompanying financial statements.
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 the 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
Notes to the Financial Statements
(Continued)
21
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 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 General 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 disbursed 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.
2. 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 Internal 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 Investment Trust Funds account for investments made by the County on behalf of other
governmental entities using the economic resources measurement focus.
Notes to the Financial Statements
(Continued)
22
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 General Long-Term Debt Account Group accounts for all long-term obligations of the County,
except those accounted for in Proprietary Funds.
C. Basis of Accounting
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, those expenditures and related liabilities have been
recognized in the Debt Service Funds.
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 and Investment Trust 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. Budgeting and Budgetary Control
Arizona Revised Statutes (A.R.S.) require the County to prepare and adopt a balanced budget annually
for each separate fund. The Board of Supervisors must approve such operating budgets on or before the
third Monday in July to allow sufficient time for the legal announcements and hearings required for the
adoption of the property tax levy on the third Monday in August. A.R.S. prohibit expenditures or
liabilities in excess of the amounts budgeted.
Essentially, the County prepares its budget on the same modified accrual basis of accounting used to
record actual revenues and expenditures.
Notes to the Financial Statements
(Continued)
23
The County has adopted budgets in accordance with the A.R.S. requirements for the General, Special
Revenue, Debt Service, and Capital Projects Funds except for certain Special Revenue, Debt Service
and Capital Projects Funds. Formal budget integration is not employed for the Expendable Trust,
Internal Service, and Enterprise Funds because effective budgetary control is alternatively achieved
through either the terms of the trust agreement in the case of the Expendable Trust Fund, or the
capability of cost recovery in the case of Internal Service and Enterprise Funds. Budgeted amounts are
reported as originally adopted or as amended by authorization from the Board of Supervisors. All budget
adjustments require authorization from the Board of Supervisors.
Expenditures may not legally exceed appropriations at the department level. In certain instances,
transfers of appropriations between departments or from the contingency account to a department may
be made upon approval of the Board of Supervisors. With the exception of the General Fund, each fund
includes only one department.
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.
Capital projects are typically long-term projects that are planned for and budgeted over several years.
The budgets presented are on an annual basis only.
The County budgets for Governmental Fund types on a basis consistent with generally accepted
accounting principles (GAAP), with the exception of the following types of transactions:
Capital Lease Transactions
Bond Issuance Transactions
Encumbrance accounting, under which purchase orders, contracts and other commitments to expend
monies, is recorded to reserve that portion of the applicable fund balance, 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. However, the County may draw warrants against
encumbered amounts for goods or services received but unpaid at June 30 for 30 days immediately
following the close of the fiscal year. After 30 days, the remaining encumbered balances lapse.
E. Grants
Grants are recorded as intergovernmental receivables and revenues when the related expenditure (or
expense) is incurred. Grant monies received in advance and not spent 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.
F. Cash and Investments
For purposes of its statements of cash flows, the County considers only those highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents.
Nonparticipating interest-earning investment contracts are stated at cost. Money market investments
and participating interest-earning investment contracts with a remaining maturity of one year or less at
time of purchase are stated at amortized cost. All other investments are stated at fair value.
Notes to the Financial Statements
(Continued)
24
G. Inventory of Supplies
Inventories of the Governmental Funds consist of expendable supplies held for consumption and are
recorded as expenditures at the time of purchase. Amounts on hand at year-end are shown on the
balance sheet as an asset for informational purposes only and are offset by a fund balance reserve to
indicate that they do not constitute “available spendable resources.” These inventories are stated at
weighted-average cost.
Inventories of the Proprietary Funds are recorded as assets 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.
H. 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, are not capitalized.
Property, plant and equipment 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 and is charged as an expense against
operations. The cost of maintenance and repairs is charged to expense as incurred. Significant
renewals and improvements are capitalized and retirements are deducted.
The following shows the estimated useful lives of various kinds of County assets:
TYPE OF ASSETS
ESTIMATED USEFUL
LIFE IN YEARS
Buildings 20 - 50
Improvements other than buildings 20 - 50
Autos and trucks 3
Other equipment 3 - 20
I. Property Tax Revenues
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.
Notes to the Financial Statements
(Continued)
25
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 also levies various 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 after receipt of the tax notice and becomes 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.
J. Compensated Absences
Compensated absences consist of personal leave and a calculated amount of family medical leave as
defined by the Federal Family and Medical Leave Act (FMLA), earned by employees based on services
already rendered. Employees may accumulate up to 240 hours of personal leave depending on years of
service, but any personal hours in excess of the maximum amount that are unused by the calendar
year-end are converted to family medical leave. Generally, family medical leave benefits provide for
qualifying FMLA events and are cumulative but do not vest with employees and therefore, are not
accrued. However, upon retirement, County employees with accumulated family medical leave in
excess of 1,000 hours are entitled to a $3,000 bonus. The amount of such bonuses is accrued in the
liability recorded for compensated absences.
The amount of compensated absences expected to be paid by available financial resources is recorded
as a current liability at June 30 in the Governmental Funds. The remaining noncurrent amount of
compensated absences of the Governmental Funds is recorded in the General Long-Term Debt Account
Group. Vested compensated absences of the Proprietary Funds are recorded as expenses and
liabilities of those funds as the benefits accrue to employees. See Note 12 - Employee Compensation
Payable for more information.
K. 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 are not comparable to a consolidation. Interfund eliminations have
not been made in the aggregation of this data.
NOTE 2 – REPORTING CHANGES
During the fiscal year 1999-00, Maricopa County established a Planning and Development Fund as a
Special Revenue Fund.
Notes to the Financial Statements
(Continued)
26
NOTE 3 – BEGINNING FUND EQUITY RESTATED
The beginning fund equity of the Enterprise Funds was restated to correct an overstatement in the liability for
closure and postclosure costs at June 30, 1999, in the Solid Waste Fund related to the County’s landfills,
as estimated costs were not adjusted for cost information existing in prior years.
Changes in Beginning Fund Equity:
Enterprise Funds
Fund Equity at June 30, 1999, as previously reported $ 94,414,687
Correct overstatement in liability for closure and postclosure costs 3,769,223
Fund Equity at July 1, 1999, as restated $ 98,183,910
NOTE 4 – INDIVIDUAL FUND DEFICITS
Regional Schools (Special Revenue Fund), Research and Reporting (Special Revenue Fund), Risk
Management (Internal Service Fund) and Non-AHCCCS Health Plans (Enterprise Fund) had deficits of
$6,400, $140,051, $23,102,947 and $3,143,815, respectively, at June 30, 2000. For all of these funds
except the Risk Management Fund, the deficits resulted from operations during the year and are expected
to be corrected through normal operations in fiscal year 2000-01. The Risk Management Fund deficit is the
result of the County Board of Supervisors electing to not fund the Risk Management Fund’s unpaid claims.
Consequently, the Risk Management Fund only billed user departments for operating costs and
administrative expenses from fiscal year 1995-96 to fiscal year 1998-99, resulting in a fund deficit of
$23,321,519 at June 30, 1999. On July 1, 1999, Risk Management began billing user departments for
actuarially determined paid claim estimates.
NOTE 5 – DEPOSITS AND INVESTMENTS
Arizona Revised Statutes (A.R.S.) authorize the County to invest public monies in the State Treasurer’s
investment pool; U.S. Treasury obligations; specified state and local government bonds; and interest-earning
investments such as savings accounts, certificates of deposit, and repurchase agreements in eligible
depositories. Statute requires collateral for demand deposits, certificates of deposit, and repurchase
agreements at 101 percent of all deposits not covered by federal depository insurance.
County Treasurer’s Investment Pool – Arizona Revised Statutes require community colleges, school
districts, and other local governments to deposit certain public monies with the County Treasurer (see Note
6). Those monies are pooled with County monies for investment purposes.
At June 30, 2000, the investment pool had cash on hand of $4,500. The carrying amount of the pool’s total
cash in bank was $18,276,027, and the bank balance was $(811,078).
At June 30, 2000, the investments in the County Treasurer’s investment pool consisted of the following:
Reported Fair
Amount Value
U.S. government securities $ 1,845,757,254 $ 1,845,757,254
Total $ 1,845,757,254 $ 1,845,757,254
Notes to the Financial Statements
(Continued)
27
The investment pool’s investments at June 30, 2000, 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.
CATEGORY CATEGORY CATEGORY REPORTED FAIR
I II III AMOUNT VALUE
U.S. government securities $ 1,845,757,254 $ $ $1,845,757,254 $ 1,845,757,254
Total investments $ 1,845,757,254 $ $ $1,845,757,254 $ 1,845,757,254
Other Deposits – At June 30, 2000, the total nonpooled cash on hand was $96,671. The carrying amount
of the total nonpooled cash in bank was $31,733,239, and the bank balance was $32,207,158. Of the bank
balance, $5,015,928 was covered by federal depository insurance or by collateral held by the County or its
agent in the County’s name and $27,191,230 was covered by collateral held by the pledging financial
institution’s trust department or agent in the County’s name.
Other Investments - At June 30, 2000, the County’s nonpooled investments consisted of the following:
Reported Fair
Amount Value
U.S. government securities $ 34,334,036 $ 34,334,036
Repurchase agreements 77,613,948 77,613,948
Mutual funds 27,302,380 27,302,380
Total $ 139,250,364 $ 139,250,364
The County’s nonpooled investments at June 30, 2000, are categorized below to give an indication of the
level of risk assumed by the County at year-end.
CATEGORY CATEGORY CATEGORY REPORTED FAIR
I II III AMOUNT VALUE
U.S. government securities $16,123,545 $ 2,347,237 $ 15,863,254 $ 34,334,036 $ 34,334,036
Repurchase agreements 77,613,948 77,613,948 77,613,948
Mutual funds 27,302,380 27,302,380
(Not subject to categorization)
Total investments $16,123,545 $ 79,961,185 $ 15,863,254 $ 139,250,364 $ 139,250,364
The Board of Supervisors authorized $5,824,173 of interest earned in certain other funds to be transferred to
the General Fund.
A reconciliation of cash and investments to amounts shown on the Combined Balance Sheet follows:
Cash and Investments: County Treasurer’s
Investment Pool Other Total
Cash on hand $ 4,500 $ 96,671 $ 101,171
Carrying amount of deposits 18,276,027 31,733,239 50,009,266
Reported amount of investments 1,845,757,254 139,250,364 1,985,007,618
Total $ 1,864,037,781 $ 171,080,274 $ 2,035,118,055
Notes to the Financial Statements
(Continued)
28
Combined Balance Sheet:
Cash in bank and on hand $ 51,549,950
Cash and investments held by
County Treasurer 1,957,488,250
Cash and investments held by
Trustee 26,079,855
Total $ 2,035,118,055
NOTE 6 – COUNTY TREASURER’S INVESTMENT POOL
Arizona Revised Statutes require community colleges, school districts, and other local governments to
deposit certain public monies with the County Treasurer. The Treasurer has a fiduciary responsibility to
administer those and the County monies under his stewardship. The Treasurer invests, on a pool basis, all
idle monies not specifically invested for a fund or program. In addition, the Treasurer determines the fair
value of those pooled investments monthly and at June 30.
The County Treasurer’s investment pool is not registered with the Securities and Exchange Commission as
an investment company and there is no regulatory oversight of its operations. The structure of the pool does
not provide for shares and the County has not provided or obtained any legally binding guarantees to support
the value of the participants’ investments.
Details of each major investment classification follows.
Investment Interest Reported
Type Principal Rates Maturities Fair Value Amount
U. S. government securities $1,845,757,254 5.0 – 7.0% Up to 3 Years $ 1,845,757,254 $1,845,757,254
A condensed statement of the investment pool’s net assets and changes in net assets follows.
Statement of net assets
Assets $ 1,925,811,575
Liabilities 0
Net assets $ 1,925,811,575
Net assets held in trust for:
Internal participants $ 610,903,047
External participants 1,314,908,528
Total net assets held in trust $ 1,925,811,575
Statement of changes in net assets
Total additions $ 15,314,925,037
Total deductions 15,114,382,474
Net increase 200,542,563
Net assets held in trust:
July 1, 1999 1,725,269,012
June 30, 2000 $ 1,925,811,575
Notes to the Financial Statements
(Continued)
29
NOTE 7 – 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 at
June 30, 2000, follows.
ENTERPRISE
FUNDS
Gross accounts receivable $ 72,906,145
Less: estimated uncollectibles (41,940,996)
Accounts receivable $ 30,965,149
NOTE 8 - PROPERTY TAXES RECEIVABLE
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, 2000, as determined from the records of
the County Treasurer’s Office, consisted of the following:
YEAR
GENERAL
FUND
SPECIAL
REVENUE
FUNDS
DEBT
SERVICE
FUNDS
1999-00 $ 4,601,120 $ 1,052,896 $ 453,312
1998-99 129,004 37,551 14,641
1997-98 83,088 0 0
1996-97 73,405 133 977
1995-96 48,536 252 3,731
1994-95 28,616 1,000 36
Prior 179,495 110,725 47,432
Total $ 5,143,264 $ 1,202,557 $ 520,129
The portion of property taxes receivable not collected within 60 days after June 30, 2000, has been deferred
and, consequently, is not included in current year revenues. In addition, allowance for uncollectable taxes is
considered immaterial, therefore, these amounts are not calculated and presented.
NOTE 9 – DUE FROM OTHER GOVERNMENTAL UNITS
Amounts due from other governments at June 30, 2000, of $148,311,714, include $55,092,335, $17,515,558
and $13,457,595 in state-shared revenues for sales taxes, vehicle license taxes and highway user taxes,
respectively, $16,006,983 in jail tax collected by the State but not received by the County, $936,969 in
rental car surcharge collected by the State but not received by the County, $30,820,079 in various Federal
and State grants, and $4,849,653 due from other governments for prisoner detention and police services.
The balance of $9,632,542 is comprised of miscellaneous receivables from Federal, State and Local
Governments.
Notes to the Financial Statements
(Continued)
30
NOTE 10 – CHANGES IN GENERAL FIXED ASSETS
A summary of the changes in general fixed assets follows.
GENERAL FIXED ASSETS
BALANCE
JULY 1, 1999 ADDITIONS DEDUCTIONS
BALANCE
JUNE 30, 2000
Land $ 33,020,453 $ $ $ 33,020,453
Buildings 657,806,192 1,322,906 1,498,372 657,630,726
Improvements other than buildings 55,169,396 39,245 55,208,641
Machinery and equipment 209,723,708 44,558,998 8,893,751 245,388,955
Construction in progress 6,592,046 29,807,830 3,806,759 32,593,117
Total general fixed assets $ 962,311,795 $ 75,728,979 $ 14,198,882 $ 1,023,841,892
The schedule of investment in general fixed assets by source at June 30, 2000, is as follows:
General Fund $ 437,617,474
Capital Projects Fund 32,593,117
Special Revenue Funds:
Air Pollution 4,643,342
Animal Control 4,055,787
Bank One Ball Park 355,291,757
Flood Control 23,355,089
Housing Department 43,985,901
Jail Operations 2,322,269
Library 8,767,256
Other Grants 17,429,283
Other Special Revenue 9,236,779
Parks and Recreation 5,621,565
Public Health 6,400,833
Recorder’s Surcharge 5,182,955
Regional Schools 8,838,377
Sports Authority 22,333
Stadium District 13,123
Transportation 58,464,652
Total investment in general fixed assets $ 1,023,841,892
NOTE 11 – PROPRIETARY FUNDS PROPERTY, PLANT AND EQUIPMENT
The Proprietary Fund type schedule of property, plant and equipment by asset class at June 30, 2000, is as
follows:
ASSET CLASS
ENTERPRISE
FUNDS
INTERNAL
SERVICE
FUNDS
TOTAL
PROPRIETARY
FUNDS
Land $ 1,489,679 $ 0 $ 1,489,679
Buildings 71,108,245 379,533 71,487,778
Improvements other than buildings 1,375,385 0 1,375,385
Machinery and equipment 71,140,896 8,704,503 79,845,399
Construction in progress 7,383,352 0 7,383,352
Total property, plant and equipment 152,497,557 9,084,036 161,581,593
Accumulated depreciation (82,259,368) (5,433,144) (87,692,512)
Net property, plant and equipment $ 70,238,189 $ 3,650,892 $ 73,889,081
Notes to the Financial Statements
(Continued)
31
NOTE 12 – EMPLOYEE COMPENSATION PAYABLE
Compensated absences consist of personal leave and a calculated amount of family medical leave, as
defined by the Federal Family and Medical Leave Act (FMLA), earned by employees based on services
already rendered. Employees may accumulate up to 240 hours of personal leave hours, but any personal
leave hours in excess of the maximum amount that are unused by the calendar year-end are converted to
family medical leave. Generally, family medical leave benefits provide for qualifying FMLA events and are
cumulative, but do not vest with employees and therefore, are not accrued. Personal leave and other
compensated absences with similar characteristics are accrued as a liability when the benefits are earned
by the employees, if the leave is attributable to past service and it is probable that the employer will
compensate the employees for the benefits through paid time or some other means, such as cash
payments at termination or retirement. Additionally, the liability to be recognized should be based upon
these requirements:
a) Upon retirement, County employees with accumulated family medical leave in excess of
1,000 hours are entitled to a $3,000 bonus.
b) Fringe benefits related to compensated absences are susceptible to accrual.
Liabilities for personal leave and the $3,000 bonus earned by employees at June 30, 2000, were recorded in
the following funds and account group:
General $ 3,186,000
Special Revenue 2,605,320
Enterprise/Internal Service 3,648,793
General Long-Term Debt 27,084,256
Total $ 36,524,369
The remaining balance of $9,317,660 is comprised of accrued payroll and employee benefits at June 30,
2000.
NOTE 13 – LONG-TERM OBLIGATIONS
Under the direction of the U.S. Department of Housing and Urban Development (HUD) Public Housing
Authority GAAP Conversion Guide dated January 1, 2000, Maricopa County will no longer report a liability
for the $17,973,888 of Housing Department permanent notes and interest.
The Stadium District revenue bonds payable at June 30, 1999 and 2000, in the amounts of $30,230,000 and
$28,225,000 respectively, have been reclassified as Stadium District debt with governmental commitment.
The City of Peoria and the City of Mesa Municipal Development Corporation issued these revenue bonds on
behalf of the Stadium District. Under the Intergovernmental Agreements (IGA), the Stadium District has
agreed to pay the principal and interest payments due on the bonds from Stadium District revenues. As the
obligation of the Stadium District was established through these intergovernmental agreements the
reclassification is considered appropriate.
A summary of changes in the general long-term obligations follows:
Notes to the Financial Statements
(Continued)
32
BALANCE
JULY 1, 1999
ISSUES/
ADDITIONS
RETIREMENTS/
DEDUCTIONS
BALANCE
JUNE 30, 2000
General obligation bonds payable $ 99,910,000 $ $ 20,315,000 $ 79,595,000
Special assessment debt with governmental 208,160 659,388
Housing Department bonds payable 14,115 95,975
Housing Department permanent notes and interest 17,973,888
Housing Department loans payable 108,669 1,976,984
Stadium District revenue bonds 1,280,426 27,704,259
Stadium District debt with governmental commitment 2,005,000 28,225,000
Capital leases payable (Note 14) 4,542,153 4,054,594 18,121,511
Certificates of participation payable 3,445,476 17,222,210
Employee compensation payable (Note 12) 2,731,764 27,084,256
Claims and judgements payable (Note 17B and C) 11,964,099 11,195,500 70,719,037
$ 312,766,432 $ 19,238,016 $ 60,600,828 $ 271,403,620
Issues of long-term debt were as follows at June 30, 2000:
General Obligation 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.
DESCRIPTION AMOUNT OF
ISSUE
INTEREST RATES MATURITY DATES
OUTSTANDING AT
JUNE 30, 2000
1986 Bond Issue
Series Series D (1993) $ 25,575,000 4.5 - 7.5% 7-1-00/04 $ 24,000,000
1992 Refunding Bond Issue
First Series 1992
Second Series 1992
68,500,000
67,500,000
4.0 – 5.4%
6.25%
7-1-00/03
7-1-00/03
7,275,000
58,700,000
1994 Refunding Bond Issue
1994A Tax Exempt 9,220,000 5.0 – 5.2% 7-1-00/02 3,295,000
1995 Refunding Bond Issue 17,320,000 4.5 – 4.7% 7-1-00/02 6,640,000
$ 188,115,000 $ 99,910,000
Special Assessment Bonds Debt With Governmental Commitment
Special Assessments Bonds are recorded in the General Long-Term Debt Account Group and 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, 2000:
Notes to the Financial Statements
(Continued)
33
DESCRIPTION
AMOUNT OF
ISSUE INTEREST RATES MATURITY DATES
OUTSTANDING AT
JUNE 30, 2000
Fairview Lane $ 59,379 9.000% 1-1-01/06 $ 17,718
158th Street 73,587 9.000% 1-1-01/02 4,934
Boulder 48,813 9.000% 1-1-01/02 5,300
Grand View Manor 274,888 9.000% 1-1-01/05 46,816
East Fairview Lane 60,657 9.000% 1-1-01/07 26,894
Queen Creek Water 301,960 4.870% 7-1-00/17 271,260
White Fence Farms 185,810 9.000% 1-1-01/07 67,778
104th Place/University 83,236 9.000% 1-1-01/07 46,100
Central Avenue 301,905 9.000% 1-1-01/09 234,965
Billings Street 14,004 9.000% 1-1-01/08 7,683
$ 1,404,239 $ 729,448
Public Housing Bonds
Housing Department Bonds, payable from Federal government subsidies, are due annually in varying
principal and interest amounts.
DESCRIPTION
AMOUNT OF
ISSUE INTEREST RATE
MATURITY
DATES
OUTSTANDING AT
JUNE 30, 2000
AZ 9-6 $ 369,787 3.875% 11-1-00/05 $ 95,975
Housing Department Loans Payable
Housing Department loans payable at June 30, 2000, consisted of the outstanding notes below. The
Department sold notes to the Federal Financing Bank. These notes will be repaid through Federal
government subsidies.
DESCRIPTION
AMOUNT OF
NOTE
INTEREST
RATE
MATURITY
DATES
OUTSTANDING AT
JUNE 30, 2000
AZ 9-5 $ 180,839 6.60% 11-1-00 $ 15,838
AZ 9-9 3,112,494 6.60% 11-1-00/12 1,961,146
$ 3,293,333 $ 1,976,984
Following is the schedule of principal and interest requirements on the Housing Department loans payable:
YEAR PRINCIPAL INTEREST TOTAL
2000-01 $ 115,484 $ 130,838 $ 246,322
2001-02 106,578 122,859 229,437
2002-03 113,612 115,825 229,437
2003-04 121,110 106,327 227,437
2004-05 128,829 100,608 229,437
After 2005 1,391,371 444,121 1,835,492
$ 1,976,984 $ 1,020,578 $ 2,997,562
Notes to the Financial Statements
(Continued)
34
Stadium District Revenue Bonds and Debt with Governmental Commitment
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 Stadium District pursuant
to A.R.S. §48-4234. Under the statute, the Stadium 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 Stadium District
Board of Directors initially levied a surcharge at a rate of $1.50 beginning in January 1992 and 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 or 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.
On May 15, 1993, the Stadium District issued $10,640,000 of Revenue Bonds Series 1993A to renovate
Phoenix Municipal Stadium and construct a practice facility, and to pay off $2,731,000 of outstanding debt
financed by the City of Tempe for the renovation of Tempe Diablo Stadium.
On July 1, 1993, the Stadium District issued $4,870,000 of Revenue Bonds Series 1993B to purchase
Compadre Stadium.
On June 1, 1996, the Stadium District issued $9,110,000 of Revenue Bonds Series 1996 to assist in the
construction of the City of Mesa HoHoKam Stadium for use by the Chicago Cubs and to assist in the
construction of the City of Phoenix Maryvale Baseball Park for use by the Milwaukee Brewers.
Subordinate Debt - On June 1, 1993, the City of Peoria issued $24,160,000 of 1993 Series A Bonds on
behalf of the Stadium District to construct the Peoria Sports Complex for use by the San Diego Padres and
the Seattle Mariners. The Stadium District entered into an Intergovernmental Agreement (“IGA”) with the
City of Peoria and the City of Peoria Municipal Sports Complex Authority, pursuant to which the Stadium
District has agreed to pay the principal and interest payments due on the bonds from Stadium District
Revenues. Stadium District Revenues in the “Peoria Subordinate Obligation Subaccount” remain subject to
the pledge and priority lien of the Stadium District Bonds.
Second Subordinate Debt - On April 1, 1996, the City of Mesa Municipal Development Corporation issued
$10,000,000 of Revenue Bonds Series 1996B on behalf of the Stadium District. Pursuant to the terms of an
IGA with the City of Mesa, the Stadium District will, as certain specified revenues become available in the
future, repay the City of Mesa an amount equal to the debt service associated with the Series 1996B Bonds,
plus certain expenses relating thereto. The calculation of available revenues under the IGA for fiscal year
2000 is $664,333 and is due and payable October 15, 2000. At June 30, 2000, the Stadium District had
prepaid $563,837 to the City of Mesa toward future debt payments.
The bonds are secured solely by the City of Mesa’s obligation to make payments under the lease and its
pledge of excise taxes to secure such obligation. The bonds are remarketed by their remarketing agent at
an annual interest rate necessary to market such bonds at prices equal to 100% of the principal amounts
thereof, which is not to exceed 15%.
On March 10, 1997, the Stadium District issued $10,000,000 in Second Subordinate Capital Appreciation
Net Revenue Bonds to assist in the construction of the City of Phoenix Maryvale Baseball Park for use by
the Milwaukee Brewers. The bonds mature October 15, 2035. Pursuant to terms of the agreement, the
Stadium District will, as certain specified revenues become available in the future, prepay the bonds. The
calculation of certain specified revenues under the debt agreement for fiscal year 2000 is $664,333 and is
due and payable October 15, 2000. At June 30, 2000, the value of the bonds including interest is
$8,283,401, which represents the total obligation if paid on that date.
Notes to the Financial Statements
(Continued)
35
The Stadium District had the following revenue bonds outstanding at June 30, 2000:
DESCRIPTION AMOUNT OF
ISSUE
INTEREST RATES MATURITY DATES
OUTSTANDING
AT
JUNE 30, 2000
Revenue Bonds
Series 1993A $ 10,640,000 3.90 - 5.50% 7-1-00/13 $ 10,400,000
Series 1993B 4,870,000 3.70 - 4.75% 7-1-00/03 2,640,000
Series 1996 9,110,000 5.00 - 5.75% 7-1-00/14 8,795,000
IGA Peoria Sports Complex -
Series 1993A 24,160,000 4.50 - 7.70% 7-1-00/13 20,230,000
Second subordinate
obligations:
IGA Mesa Municipal Dev. 10,000,000
Variable,
15% maximum 10-15-01/16 8,895,000
Capital Appreciation Bonds 10,000,000 6.26 - 8.77% 10-15-35 6,669,259
$ 68,780,000 $ 57,629,259
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 February 1, 2000, Maricopa County issued $5,300,000 of Certificates of Participation to pay for the cost
of construction for the Avondale Family Health Center.
On August 1, 1996, Maricopa County issued $2,500,000 of Certificates of Participation to pay for the cost of
a building for Maricopa County Regional School District 509.
On August 1, 1994, Maricopa County issued $30,000,000 of Certificates of Participation to assist in the
acquisition of the County’s Southeast Juvenile Court and Detention Center and its adult detention facility
known as the Estrella Jail Complex.
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.
The following Certificates of Participation were outstanding at June 30, 2000:
DESCRIPTION
AMOUNT OF
ISSUE
INTEREST
RATES MATURITY DATES
OUTSTANDING
AT
JUNE 30, 2000
2000 Certificates of Participation $ 5,300,000 5.500 - 6.00% 7-1-01/10 $ 5,300,000
1996 Certificates of Participation 2,500,000 5.750 - 6.25% 6-1-01/11 2,003,380
1994 Certificates of Participation 30,000,000 5.125 - 6.00% 5-25-01/04 14,285,000
1993 Certificates of Participation 3,850,000 4.800 - 5.25% 6-01-01/08 1,300,001
$ 41,650,000 $ 22,888,381
The following is a schedule of future minimum principal and interest payments, for the above-described
Certificates of Participation:
Notes to the Financial Statements
(Continued)
36
YEAR
ENTERPRISE
FUNDS
GENERAL LONG-TERM
DEBT
ACCOUNT GROUP
2000-01 $ 839,557 $ 4,671,788
2001-02 803,826 4,579,683
2002-03 803,860 4,580,727
2003-04 805,447 4,482,259
2004-05 760,958 326,120
After 2005 3,752,911 1,750,445
Total principal and interest payments 7,766,559 20,391,022
Amount representing interest (2,100,388) (3,168,812)
Total Certificates of Participation payable at June 30, 2000 $ 5,666,171 $ 17,222,210
The following fixed assets are currently associated with the Certificates of Participation:
ENTERPRISE
FUNDS
GENERAL FIXED
ASSETS
ACCOUNT GROUP
Land $ 1,084,430 $
Juvenile Court 30,000,000
Justice Court/Probation Center Buildings 2,765,570
Avondale Family Health Center 155,617
Pappas School Building 2,500,000
$ 1,240,047 $ 35,265,570
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 at June 30, 2000