Coconino County Arizona comprehensive annual financial report

              Coconino County,
Arizona
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2009
Coconino County, Arizona
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2009
COCONINO COUNTY BOARD OF SUPERVISORS
Carl Taylor Elizabeth C. Archuleta Matthew G. Ryan
District 1 Vice - Chairman Chairman
District 3 District 2
Mandy Metzger Lena Fowler
District 4 District 5
Steve Peru
County Manager
Michael Townsend, CPA
Deputy County Manager, Chief Operations Officer
Sandra Schulz, CPA
Chief Financial Officer
Prepared By:
Holly Lindfors, CPA
Financial Reporting and Audit Manager
Coconino County
Comprehensive Annual Financial Report
Year Ended June 30, 2009
Table of Contents
INTRODUCTORY SECTION Page
Letter of Transmittal ......................................................................................................................................... 1
Organization Chart ............................................................................................................................................ 9
Coconino County Officials ............................................................................................................................... 10
FINANCIAL SECTION
Independent Auditors’ Report ............................................................................................................................ 11-12
Management’s Discussion and Analysis
(Required Supplementary Information) .......................................................................................................... 13-22
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ............................................................................................................................. 23
Statement of Activities ............................................................................................................................... 25
Fund Financial Statements:
Balance Sheet – Governmental Funds ........................................................................................................ 26-27
Reconciliation of the Balance Sheet to the Statement of Net Assets–Governmental Funds ...................... 29
Statement of Revenues, Expenditures, and Changes in Fund Balances–Governmental Funds ................. 30-31
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities–Governmental Funds ...................................................... 32
Statement of Net Assets–Proprietary Fund ................................................................................................ 33
Statement of Revenues, Expenses, and Changes in Fund Net Assets–Proprietary Fund ........................... 34
Statement of Cash Flows–Proprietary Fund ............................................................................................... 35
Statement of Fiduciary Net Assets–Fiduciary Funds ................................................................................. 36
Statement of Changes in Fiduciary Net Assets–Fiduciary Funds .............................................................. 37
Notes to Financial Statements ......................................................................................................................... 38-66
Required Supplementary Information:
Schedule of Agent Retirement Plan and Coconino County Retiree Insurance Program
Funding Progress ......................................................................................................................................... 67
Budgetary Comparison Schedules:
General Fund ............................................................................................................................................... 68-69
Public Works/HURF Fund ........................................................................................................................... 70
Jail District Fund ......................................................................................................................................... 71
Parks and Open Spaces Tax Fund ................................................................................................................ 72
Notes to Budgetary Comparison Schedules ................................................................................................. 73
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds ......................................................................... 78-85
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds ................................................................................................. 86-93
Schedules of Revenues, Expenditures, and Changes in Fund
Balances – Budget and Actual:
Adult Probation Grants and Fees ............................................................................................................ 94
Assessor Storage and Retrieval ............................................................................................................... 95
Career Center Grants ............................................................................................................................... 96
Clerk of the Superior Court Grants and Fees .......................................................................................... 97
Community Services Grants and Fees .................................................................................................... 98
Conciliation Court .................................................................................................................................. 99
County Attorney Grants and Fees ........................................................................................................... 100
County Improvement Districts-Special Revenue .................................................................................... 101
County Library District ........................................................................................................................... 102
Emergency Services Grants .................................................................................................................... 103
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Coconino County
Comprehensive Annual Financial Report
Year Ended June 30, 2009
Table of Contents
(Continued)
ii
County Flood Control District ................................................................................................................ 104
Health Grants ......................................................................................................................................... 105
Health Services and Fees ........................................................................................................................ 106
Inmate Welfare ....................................................................................................................................... 107
Jail Enhancement ................................................................................................................................... 108
Justice Courts Grants and Fees ............................................................................................................... 109
Juvenile Court Grants and Fees .............................................................................................................. 110
Legal Defender Grants and Fees ............................................................................................................. 111
National Forest Fees ............................................................................................................................... 112
Parks Open Space Tax Projects .............................................................................................................. 113
Parks and Recreation Grants and Fees .................................................................................................... 114
Public Defender Grants and Fees ............................................................................................................ 115
Recorder Storage and Retrieval .............................................................................................................. 116
School Superintendent Grants and Fees .................................................................................................. 117
Sheriff Grants and Fees ........................................................................................................................... 118
Solid Waste ............................................................................................................................................ 119
Superior Court Grants and Fees .............................................................................................................. 120
Taxpayer Information Fund .................................................................................................................... 121
Other Special Revenue Funds ................................................................................................................. 122
County Improvement Districts – Debt Service ....................................................................................... 123
Accommodation School .......................................................................................................................... 124
County Improvement Districts-Capital Projects ..................................................................................... 125
Parks Capital Projects ............................................................................................................................. 126
Other Capital Projects Funds .................................................................................................................. 127
Combining Statement of Fiduciary Net Assets – Investment Trust Funds ..................................................... 128
Combining Statement of Changes in Fiduciary Net Assets – Investment Trust Funds .................................. 129
Statement of Changes in Assets and Liabilities-Agency Fund ....................................................................... 130
STATISTICAL SECTION
Financial Trends
Net Assets by Component ............................................................................................................................ 133
Changes in Net Assets ................................................................................................................................. 134-135
Fund Balances, Governmental Funds ........................................................................................................... 136
Changes in Fund Balances, Governmental Funds ........................................................................................ 137
Revenue Capacity
Assessed Value and Estimated Market Value of Taxable Property ............................................................. 138
Direct and Overlapping Property Tax Rates ................................................................................................. 139
Principal Property Tax Payers ...................................................................................................................... 140
Property Tax Levies and Collections ............................................................................................................ 141
Debt Capacity
Ratios of Outstanding Debt by Type ............................................................................................................ 142
Legal Debt Margin....................................................................................................................................... 143
Pledged Revenue Coverage .......................................................................................................................... 144
Demographic and Economic Information
Demographic and Economic Statistics ......................................................................................................... 145
Principal Employers .................................................................................................................................... 146
Operating Information
Full-Time Equivalent Employees by Function ............................................................................................. 147
Operating Indicators by Function/Program .................................................................................................. 148
Capital Asset and Infrastructure Statistics by Function ................................................................................ 149
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INTRODUCTORY SECTION
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COCONINO COUNTY ARIZONA
OFFICE OF THE COUNTY MANAGER
219 East Cherry Avenue • Flagstaff, AZ 86001-4695
(928) 679-7130 • Fax: (928) 679-7171
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January 25, 2010
The Honorable Board of Supervisors and Citizens of Coconino County, Arizona:
We are pleased to provide you the Comprehensive Annual Financial Report (CAFR) of
Coconino County for the fiscal year ended June 30, 2009. The CAFR provides additional
information to the Board and the citizens on the County’s financial position and results of
operations. Pursuant to Arizona Revised Statute (A.R.S.) 41-1279.21 the Coconino
County CAFR was audited in accordance with generally accepted auditing standards for
the year ended June 30, 2009 and has been issued an unqualified (“clean”) opinion.
This report consists of management’s representations concerning the finances of
Coconino County. Consequently, management assumes full responsibility for the
completeness and reliability of all the information presented in this report. To provide a
reasonable basis for making these representations, management of the County has
established a comprehensive internal control framework that is designed both to protect
the government’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the County’s financial statements in conformity with
generally accepted accounting principles (GAAP). Because the cost of internal controls
should not exceed anticipated benefits, the objective is to provide reasonable, rather than
absolute, assurance that the financial statements are free of any material misstatements.
Fester & Chapman P.C., a firm of licensed certified public accountants, have audited the
County’s financial statements. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the County for the fiscal year ended
June 30, 2009, are free of material misstatement. The independent audit involved
examining, on a test basis, evidence supporting amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The
independent auditor concluded that there was a reasonable basis for rendering an
unqualified (“clean”) opinion that the County’s financial statements for the fiscal year
ended June 30, 2009, are fairly presented in conformity with GAAP. The Independent
Auditors’ Report is located at the front of the financial section of this report.
The report is prepared in accordance with generally accepted accounting principles, in
conformance with standards of financial reporting established by the Governmental
Accounting Standards Board (GASB), and using the guidelines established by the
Government Finance Officers Association of the United States and Canada (GFOA).
GAAP requires that management provide an analysis, narrative introduction, and
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overview to accompany the basic financial statements, called the Management’s
Discussion and Analysis (MD&A). This letter of transmittal is designed to complement
the MD&A and should be read in conjunction with it. The MD&A immediately follows
the Independent Auditors’ Report in the financial section of this report.
This report consists of management’s representations concerning the finances of the
County. Consequently, management assumes full responsibility for the completeness and
reliability of the information contained in this report. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all
material respects.
The CAFR consists of three sections:
The Introductory section, which includes the Letter of Transmittal.
The Financial section, which includes the Independent Auditors’ Report, MD&A,
audited basic financial statements, notes to the statements, and required
supplementary information.
The Statistical section, which presents comprehensive statistical data on the
County’s financial, physical, economic, and demographic characteristics.
Coconino County Profile
Coconino County was established on February 19, 1891 by the 16th Territorial Assembly
with an initial population count of 4,000. The County encompasses approximately
18,661 square miles – the largest county in Arizona and the second largest in the United
States. Despite its size, Coconino County is one of the most sparsely populated counties
in Arizona with a population of 6.9 per square mile. Only 13% of the County’s total
square miles is private property. The remainder is a combination of state, federal and
reservation land.
The June 30, 2009 population of the County was estimated to be 139,388. Flagstaff is the
County seat and the largest city in the County. The County is home to the Grand
Canyon, four other federal recreation areas, and three state parks. The County is also
home to reservation land belonging to the Navajo, Hopi, Havasupai, Hualapai and Paiute
tribes.
Coconino County’s government consists of an elected Board of Supervisors (Board).
There are five districts, each represented by a Supervisor who resides in the district. The
Board holds the policy-making and legislative authority for the County. It is responsible
for the overall management and approval of all departmental budgets and tax rates. The
Board appoints a County Manager who serves as the Chief Administrative Officer for the
County. Departments are either headed by an appointed official, appointed by the Board,
or by an elected official. Elected offices are statutorily determined and include the
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Sheriff, County Attorney, Recorder, Treasurer, Assessor, Superintendent of Schools,
Constable, Clerk of the Superior Court, and the Judiciary.
Coconino County provides a full range of services including law enforcement and public
safety, health services, sanitation, welfare programs, highway construction and
maintenance, parks and recreation, and education.
The financial reporting entity includes all the funds of the primary government.
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. Additional information can be found in the
notes to the financial statements (See Note 1.A.).
The Board and the County Manager use a ten-year financial plan, along with fiscal
policies, budget management policies, and strategic goals and priorities to guide the
overall development and management of the budget. Annually, departments are required
to provide revenue and expenditure estimates for the current fiscal year and planned
revenues for the following year. These estimates are used to update the ten-year financial
plan. Budget increases are based on funding for program and service changes rather than
the specific items to be purchased; are subject to the availability of funds; conformance
with fiscal and budget management policies; and meeting the County’s strategic goals
and priorities.
The final budget must be adopted by the Board on or before the third Monday in July.
The tax rate and levy must be set on or before the third Monday in August each year.
The level of budgetary control is at the department level within fund. Transfers between
these levels must be approved by the Board. Additionally, actual expenditures may not
legally exceed the final budget.
Assessing Coconino County’s Economic Condition
The information presented in the financial statements is best understood when it is
considered from the broader perspective of the specific environment within which the
County operates.
Local economy. The economy of Coconino County is based primarily on public
administration, the service industry, wholesale and retail trade, and tourism. The City of
Flagstaff (the County seat) is the center of educational, governmental, and scientific
employment. Major employers included Northern Arizona University, City of Flagstaff,
Coconino Community College, the unified school districts, the U.S. Forest Service, the
U.S. National Park Service, the Navajo Nation, Flagstaff Medical Center, W.L. Gore and
Associates, Aramark Leisure Services, Nestle-Purina, Walgreens, and SCA Tissues.
Tourism significantly impacts the local economy. Old Route 66 runs across most of the
County as well as US Route 40. Attractions include the Grand Canyon,
Sedona/Oakcreek Canyon, Glen Canyon National Recreation Area, Wupatki National
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Monument, Sunset Crater National Monument, Walnut Canyon Monument, and Slide
Rock State Park. Over 6.9 million people visited these attractions in 2008.
Long–term financial planning. The County began a long-term financial planning process
in fiscal year 2007. This long-term planning has been a key factor in Coconino County’s
fiscal health. Fiscal conservatism, sound fiscal and budget management policies, and a
ten-year financial plan have put the County in a position to respond to the current and
future economic challenges it faces.
Impact of State Economic Condition. Although the County’s sound long-term financial
planning considered and included a recessionary growth model based on prior recessions,
the depth and breadth of economic downturn to both the State and local economies was
not anticipated. The uncertainty about the level and impact of State declining revenues
and the unbalanced FY10 budget for the State of Arizona which could result in the
shifting of costs, reductions in program funding and reduced revenue allocations to the
County was cause for concern during the development of the FY10 budget. As of the
date of this report, the State has not completely addressed its FY10 budget shortfall of
nearly $1.6 billion dollars which has caused continued uncertainty for Counties across the
state. The County will continue to work with the Governor, State Legislators, and the
County Supervisors Association to find solutions to state budget shortfall that have the
least impact to counties. In addition to these efforts, the County is actively pursuing
solutions to decrease reliance on state controlled revenues and to increase locally
controlled sources. Additional details are included in Management’s Discussion and
Analysis under “Economic Factors and Next Year’s Budget” which can be found in the
Financial section of the CAFR.
Economic Outlook. The County’s local revenues as well as those allocated by the State
continue to be impacted by the economic downturn. Arizona was among the states
hardest hit by the recession with economists predicting that the economic recovery in
Arizona will span several years and include years of no growth or slow growth levels.
Further, Arizona is likely to fare worse than the national economy in 2010 due to
continued weakness in the housing market, dependence on growth industries, and the
uncertainty with regard to the political environment and budget outcome within the state.
The County will continue to address this outlook through the strategic budget process,
mid-year budget reviews and expenditure cuts, potential new revenue sources, and the
ongoing long-term financial planning process. Additional details are included in the
MD&A under “Economic Factors and Next Year’s Budget”.
Significant Financial Policies. Coconino County’s financial policies include:
Capital Budgeting Policies. The capital budget provides resources for capital
maintenance and future capital needs, without adversely affecting the operating budget.
Revenue Policies. Funding for public programs should be derived from a fair, equitable
and adequate resource base, while minimizing tax differential burdens.
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Reserve Policies. Responsible reserve policies will provide adequate resources for cash
flow and contingency purposes, while maintaining reasonable tax rates. The County
maintains a contingency for cash liquidity purposes in the County General Fund equal to
at least 10% of its annual operating budget.
Debt Policies. Responsible debt management policy maintains the County’s ability to
incur present and future debt at minimal interest rates in amounts needed for
infrastructure and economic development without endangering its ability to finance
essential County services.
Budget Management Policies. The Board uses the approved County fiscal polices and
priorities to guide the budget process. Decisions are evaluated within these contexts as
well as the accompanying ten-year financial plan.
Major Initiatives
Performance Measures
In FY09, the County continued to expand on the development of meaningful performance
measures. In FY09, we began to refine existing measures and mold our data collection
methods to focus more on outcome and efficiency measures. For FY 10 the County will
consider measures that assist not only the Board in budget decisions, but also that assist
the departments in planning and preparation in the areas of programs, staff, and budget
needs, tied to the impacts and outcomes of County programs.
Repair and Replacement
The County has some critical needs related to information technology (IT) and updating
our IT to meet the needs of our employees. For this reason a comprehensive IT study, the
IT Strategic Plan, was completed in early FY09 to determine not only the County’s
immediate needs, but plan for future projects that will allow for efficiencies across
departments. An IT upgrade fund of $2 million has been established to fund these
efforts.
Facilities master plan
For the past two years, the Facilities Plan Advisory Team (FPAT) has directed the
mission of the Facilities Master plan (FMP) to provide Coconino County citizens and
staff with facilities that promote the delivery of quality services. Goals include aligning
facility improvements and investments with the County’s future development and
growth, critical needs, funding strategies, and environmental responsibility. Guiding
principles established by the plan are efficiency, and environmentally and culturally
sound governance.
EXODUS Program
The EXODUS program is the in-custody drug and alcohol treatment program that was
implemented in May 2007 following the increase in the Jail District sales tax. The goals
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of the program are to reduce the jail recidivism rate; to provide a proactive response to
substance abuse; to create a safer community; to assist inmates in recognizing their
substance abuse problem; and to help them make positive changes in their lives, so they
may become productive citizens in the community. The program was originally only
offered to men, however the County is excited to expand this program in FY10 to include
a women’s group.
Compensation Plan
In FY 2007 as a part of the 10 year-term planning process, the County embarked on an
evaluation of its compensation plan in an effort to reduce turnover and related costs. As a
result of the evaluation, a comprehensive compensation plan was developed. In the first
phase of the plan, pay adjustments were made to the positions that needed the largest
grade adjustments and 2.5% merit increases based on performance and pay scale cost of
living adjustments were established. Subsequent phases included completing a review of
all County positions, receiving recommendations on market and grade comparisons, and
making the adjustments needed to better align all employees within the market. Because
of the economic situation, the FY09 budget did not include adjustments to the pay scale
in the form of cost of living increases; however, 2.5% merit increases were included.
While budget constraints required suspension of the merit increase and adjustments to the
pay scale in FY10, when economic conditions and revenues improve sufficiently, the
County plans to adjust employee pay to better align all employees within the market and
resume merit increases. Currently, the review of all County positions and receiving
recommendations on market and grade comparisons is in progress.
Strategic Budget Process
During FY09, the County prepared its FY 10 budget using a new process modeled after
“Budgeting for Outcomes/Results” which is emerging as a recognized best practice for
governments. Designed to create a budget that focuses on results and priorities with an
emphasis on accountability, innovation and partnerships, the Strategic Budget Process
better aligns services delivered with what matters most to our community. The Board of
Supervisors established six strategic priority areas and all County departments submitted
Program Funding Requests that identified how their programs’ impacts/outcomes aligned
with the outcomes in one or more priority areas. The County will continue to evaluate
and refine the process over the next several years to produce budgets that best reflect
citizen priorities and that work toward the most efficient and effective delivery of
services.
Other Initiatives
The County has implemented many web-based solutions, including an on-line job
application system and an on-line system for receiving required food handler training and
permits. These web-based solutions result not only in decreased staff and operating costs
for the County, but decreased costs to our citizens who may otherwise expend time and
money for travel.
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Other
Single Audit
The independent audit of the financial statements of the County included the federally
mandated “Single Audit” designed to meet the special needs of federal grantor agencies.
The standards governing Single Audit engagements require the independent auditor to
report on the audited government’s internal controls and compliance with legal
requirements in addition to the fair presentation of the financial statements. This “Single
Audit” puts special emphasis on internal controls and compliance with legal requirements
involving the administration of federal awards. These reports are available in the
County’s separately issued Single Audit report.
Expenditure Limitation
Arizona voters approved a proposition amending the state constitution in 1980 that
established expenditure limitations for local governments, including Coconino County.
The County has not exceeded the limitation. The County has accumulated expenditure
limit carryforwards from prior years when actual expenditures were less than the limit
and used some of these this year when expenditures would otherwise exceed the limit for
the year. The County is required by state statute to prepare an Annual Expenditure
Limitation Report (AELR), in conjunction with the required annual financial statements.
The AELR must be audited and an opinion rendered on whether the AELR presents
fairly, in all material respects, the information required by the Uniform Expenditure
Reporting System. This report is available in the County’s separately issued Annual
Expenditure Limitation Report.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA)
awards a Certificate of Achievement for Excellence in Financial Reporting to
governmental units that publish an easily readable and efficiently organized
comprehensive annual financial report with contents that conform to program standards.
This year is the first year Coconino County has prepared a CAFR and we look forward to
receiving this award for the first time.
In addition, Coconino County has received the GFOA’s Distinguished Budget
Presentation Award for its annual budget for fiscal years 2001 through 2009. The annual
budget for fiscal year 2010 has been submitted and we look forward to receiving this
award for the tenth consecutive year. In order to qualify for the award, the County’s
budget had to be judged proficient as a policy document, a financial plan, operations
guide, and a communication device.
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Organization Chart
COCONINO COUNTY
CITIZENS OF
COCONINO COUNTY
JUDICIARY
SUPERIOR COURT
Court Administration
Division I
Division II
Division III/Drug Court
Division IV
Division V
Division VI
Adult Probation
JUVENILE COURT
Juvenile Division
Juvenile Probation
Clerk of Superior Court
JUSTICE COURTS
Court Administration
Flagstaff
Fredonia
Page
Williams
CONSTABLE
COUNTY ATTORNEY
ELECTED OFFICIALS
Assessor
Treasurer
Attorney
Recorder
Sheriff
Superintendent of Schools
BOARD OF SUPERVISORS
Districts
1
2
3
4
5
Board Assistants
DEPUTY COUNTY MANAGER
Human Resources
Finance/Budget
Facilities
Information Technology
COUNTY MANAGER
Executive Secretary
Assistant to County Manager
Organization Dev. Director
Special Initiatives Director
Governmental Relations Director
CLERK OF THE BOARD
DEPUTY COUNTY
MANAGER
Community Development
Community Services
Health
Parks & Recreation
Public Works
Career Center
Legal Defender
Public Defender
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Officials
COCONINO COUNTY
BOARD OF SUPERVISORS
District 1.......................................................................................................................................................................... Carl Taylor
District 2...............................................................................................................................Elizabeth C. Archuleta, Vice Chairman
District 3...............................................................................................................................................Matthew G. Ryan, Chairman
District 4....................................................................................................................................................................Mandy Metzger
District 5......................................................................................................................................................................... Lena Fowler
County Manager................................................................................................................................................................ Steve Peru
Deputy County Manager ......................................................................................................................................Michael Townsend
Deputy County Manager ....................................................................................................................................... Larry Dannenfeldt
Clerk of the Board................................................................................................................................................... Wendy Escoffier
ELECTED OFFICIALS
Clerk of the Superior Court......................................................................................................................................... Debbie Young
Constable................................................................................................................................................................. Linda Kuczynski
County Assessor.............................................................................................................................................................Chris Mazon
County Attorney..........................................................................................................................................................David Rozema
County Recorder .......................................................................................................................................................Candace Owens
County Sheriff..............................................................................................................................................................William Pribil
County Superintendent of Schools................................................................................................................................Cecilia Owen
County Treasurer............................................................................................................................................................ Bonny Lynn
Justice of the Peace Flagstaff .................................................................................................................................Brian Kolb
Fredonia............................................................................................................................Mark R. Baron
Page............................................................................................................................Donald G. Roberts
Williams .................................................................................................................William B. Sutton, Jr.
Superior Court Division I........................................................................................................................... Danna Hendrix
Division II.............................................................................................................................Fred Newton
Division III/Drug Court ........................................................................................................Mark Moran
Division IV ..................................................................................................................Charles D. Adams
Division V ............................................................................................................. Dan Slayton, Pro Tem
Division VI ........................................................................................................... Elaine Fridlund-Horne
Juvenile Court Judge/Commissioner .....................................................................Margaret McCullough
APPOINTED DEPARTMENT HEADS
Adult Probation (Chief Probation Officer).......................................................................................................................Cindy Winn
Career Center ..................................................................................................................................................................Carol Curtis
Community Development ........................................................................................................................................William Towler
Community Services ................................................................................................................................................... Verna Fischer
Court Administrator ................................................................................................................................................... Gary Krcmarik
Facilities Management ....................................................................................................................................................Jody Gilbert
Health ..................................................................................................................................................................... Barbara Worgess
Human Resources ....................................................................................................................................................... Allison Eckert
Finance.........................................................................................................................................................................Sandra Schulz
Information Technology..........................................................................................................................................Maureen Jackson
Juvenile Court Services .............................................................................................................................................Bryon Matsuda
Legal Defender........................................................................................................................................................ Gary Pearlmutter
Parks and Recreation ......................................................................................................................................................Todd Graeff
Public Defender......................................................................................................................................................H. Allen Gerhardt
Public Works ........................................................................................................................................................ Andrew Bertelsen
FINANCIAL SECTION
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MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
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Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
The management of Coconino County (the County) offers the following narrative
overview and analysis of the County’s financial activities for the fiscal year ended June
30, 2009. It is designed to give the reader an easy-to-understand discussion of the
County’s financial position and results of operations for the current fiscal year. Please
consider this information in conjunction with the County’s basic financial statements,
which follow this section.
FINANCIAL HIGHLIGHTS FOR FISCAL YEAR 2009
• The assets of the County exceeded its liabilities at the close of fiscal year 2009
by $210.29 million (net assets). Of these $52.25 million (unrestricted net
assets) may be used to meet the government’s ongoing obligations to citizens
and creditors.
• The decrease in the County’s net assets was $181.5 thousand in fiscal year
2009. Net assets increased $1.13 million as a result of normal operations.
However, implementation of GASB Statement No 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions, resulted in a net decrease of $181.5 thousand.
• At the close of fiscal year 2009, the County’s governmental funds reported
combined ending fund balances of $79.14 million, a decrease of $1.05 million.
• The General Fund reported an unreserved fund balance of $24.96 million at the
close of fiscal year 2009, a decrease of $2.54 million. The primary reason for
this decrease was increases in expenditures that were not offset by increases in
revenues.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County’s basic
financial statements. The County’s basic financial statements are comprised of three
components:
1. Government-wide financial statements,
2. Fund financial statements, and
3. Notes to the financial statements.
This report also contains other supplementary information in addition to the basic
financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the County’s finances, in a manner similar to a private sector business.
The Statement of Net Assets and the Statement of Activities
One of the most important questions asked about the County’s finances is, “Is the County
as a whole better off or worse off as a result of this year’s activities?” The Statement of
Net Assets and the Statement of Activities report information about the County as a
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Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
whole and about its activities in a way that helps answer this question. These statements
include all non-fiduciary assets and liabilities using the accrual basis of accounting.
The Statement of Net Assets presents information on all of the County’s assets and
liabilities, with the difference between the two reported as “net assets”. Over time,
increases and decreases in net assets are one indicator of whether the County’s financial
condition is improving or deteriorating. In addition to this change, other non-financial
factors will need to be considered.
The Statement of Activities presents information showing how the County’s net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon
as the underlying events giving rise to the change occur, regardless of the timing of
related cash flows. Therefore, revenues and expenses are reported in these statements for
some items that will result in cash flows in future fiscal periods, such as revenues
pertaining to uncollected taxes and expense pertaining to earned but unused vacation and
sick leave.
All of the County’s basic services are considered to be governmental activities, including
general government, health and welfare, public safety, highways and streets,
transportation, culture and recreation, education and sanitation. Sales taxes, property
taxes, intergovernmental revenues, and user fees finance most of these activities. The
government-wide financial statements can be found on pages 23-25 of this report.
Fund Financial Statements
The fund financial statements provide detailed information about the most significant
County funds—not the County as a whole. A fund is a grouping of related accounts that
is used to maintain control over resources that have been segregated for specific activities
or objectives. Some funds are required to be established by State law or by bond
covenants. However, the Board of Supervisors establishes many other funds to help it
control and manage money for particular purposes or to show that it is meeting legal
responsibilities for using certain taxes, grants and other money. All of the County’s
funds can be divided into three categories: governmental, proprietary, and fiduciary.
Governmental funds—Most of the County’s basic services are reported in governmental
funds, which focus on near-term inflows and outflows of spendable resources and the
balances of spendable resources available at year-end. These funds are reported using an
accounting method called modified accrual accounting, which measures cash and all
other financial assets that can readily be converted to cash. The governmental fund
statements provide a detailed short-term view of the County’s operations and the basic
services it provides. Governmental fund information helps the reader determine whether
there are more or fewer financial resources that can be spent in the near future to finance
the County’s programs.
14
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
Because the focus of the governmental funds is narrower than that of the government-wide
statements it is useful to compare the information presented for the governmental
funds with similar information presented for the governmental activities in the
government-wide financial statements. Reconciliations between governmental activities
as reported in the Statement of Net Assets and the Statement of Activities and the
governmental funds as reported in the fund financial statements is provided to facilitate
this comparison.
The County maintains numerous individual governmental funds. Information is
presented separately in the governmental funds balance sheet and the governmental funds
statement of revenues, expenditures, and changes in fund balances for the General Fund,
and the Public Works/HURF Fund, Jail District Fund, and the Parks and Open Spaces
Tax Fund, which are considered to be major funds. Data from the other governmental
funds are combined into a single aggregate presentation. The basic governmental fund
financial statements can be found on pages 26-32 of this report.
Proprietary funds—The County uses one type of proprietary fund, an internal service
fund, to report fleet service activities provided for the County’s other programs and
activities. The County’s internal service fund only provides services to County
departments so it is reported as a governmental activity in the Statement of Net Assets
and the Statement of Activities. The basic proprietary fund financial statements can be
found on pages 33-35 of this report.
Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit
of parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to
support the County’s programs. The basic fiduciary funds financial statements can be
found on pages 36-37 of this report.
Notes to the financial statements—The notes to the financial statements provide
additional information that is essential to the full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements
can be found on pages 38-65 of this report.
Required supplementary information—In addition to the basic statements and
accompanying notes, the report presents required supplementary information on the
County’s budgeting and budgetary control and the County’ progress in funding its
obligation to provide pension benefits to its employees. Required supplementary
information can be found on pages 67-73 of this report.
The combining statements referred to earlier in connection with nonmajor governmental
funds are presented immediately following the required supplementary information.
Combining and individual fund statements and schedules can be found on pages 75-130
of this report.
15
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Statement of Net Assets
Net assets may serve over time as a useful indicator of a County’s financial position. The
following table reflects the condensed Statement of Net Assets of the County for June 30,
2009 compared to the prior year.
2009 2008
Current and other assets $ 97.21 $ 97.07
Capital assets 140.40 140.52
Total assets 237.61 237.59
Current liabilities 10.46 10.22
Long-term liabilities outstanding 16.86 16.90
Total liabilities 27.32 27.12
Net assets:
Invested in capital assets, net of related debt 129.69 128.20
Restricted 28.35 29.93
Unrestricted 52.25 52.34
Total net assets $ 210.29 $ 210.47
Governmental Activities
(in millions)
The County’s net assets from governmental activities at the end of the fiscal year were
$210.29 million. The decrease of $181.5 thousand comes from the change in net assets
as recorded in the Statement of Activities. A large portion of the County’s net assets
(61.67%) reflects its investment in capital assets net of accumulated depreciation and
related debt. The County uses these assets to provide services but they are not available
for future spending.
Investment in Capital Assets, net of related debt
61.67% of the County net assets ($129.69 million) are invested in capital assets (e.g.
land, buildings, equipment, and infrastructure), net of related debt. These assets are used
to provide services to citizens but are not available for future spending. The County’s
capital assets, net of related debt, increased by 1.16% ($1.49 million) in the current fiscal
year.
Restricted Net Assets
13.48% of the County’s net assets ($28.35 million) are subject to external restrictions on
how they may be used. The County’s restricted net assets decreased by 5.28% ($1.58
million) in the current fiscal year.
16
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
Unrestricted Net Assets
The remaining balance of the County’s net assets, 24.85% ($52.25 million), is
unrestricted and may be used to meet the County’s ongoing obligations to citizens and
creditors without constraints established by debt covenants or other legal requirements.
Unrestricted net assets decreased by less than 1% ($94.28 thousand).
Statement of Activities
The Statement of Activities presents information on how the County’s net assets changed
during the most current fiscal year. The following table reflects the condensed Statement
of Activities of the County for the fiscal year 2009 compared to the prior year.
2009 2008
Revenues
Program Revenues:
Charges for services $ 17.11 $ 16.66
Operating grants and contributions 34.58 34.19
Capital grants and contributions 0.12 0.90
Total program revenues 51.81 51.75
General Revenues:
State shared revenue 20.53 22.62
Sales taxes 25.99 28.09
Property taxes 14.84 12.54
Grants and contributions not restricted to
specific programs 2.87 1.73
Investment earnings 2.39 2.73
Gain on disposal of capital assets 0.21
Miscellaneous 0.38 0.23
Total general revenues 67.00 68.15
Total revenues 118.81 119.90
Program Expenses:
General government 32.36 32.25
Public safety 33.17 32.29
Highways and streets 16.66 17.99
Sanitation 3.27 3.22
Health 12.69 12.19
Welfare 7.62 6.67
Culture and recreation 7.82 6.96
Education 4.89 4.44
Interest on long-term debt 0.51 0.60
Payment to bond escrow account 0.83
Total program expenses 118.99 117.44
Change in net assets (0.18) 2.46
Net assets, beginning 210.47 208.01
Net assets, ending $ 210.29 $ 210.47
(in millions)
Governmental Activities
17
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
Program revenues increased less than $65 thousand in the current fiscal year. This lack
of growth was a combination of decreases in building permit revenues and reductions in
grant funding from the State. Program expenses only increased 1.31% ($1.55 million) in
the current fiscal year. Implementation of GASB Statement No 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions,
increased program expenses by $1.4 million, and $830 thousand was spent in the prior
fiscal year for debt defeasance that was not incurred in the current fiscal year.
Sales taxes decreased by 7.48% primarily due to the economic recession. Property taxes
increased by 18.34% ($2.3 million), primarily the result of an increase in assessed values.
The current fiscal year investment earnings decrease of 12.45% was a combination of a
decrease in the average earnings rate, a decrease of in the average monthly investment of
$9.5 million, and a capital loss.
Investment earnings
2.01%
Charges for services
14.40%
Capital grants and
contributions
0.10%
Operating grants
and contributions
29.11%
State shared
revenue
17.28%
Sales taxes
21.88%
Miscellaneous
0.31%
Property taxes
12.49%
Unrestricted grants
and contributions
2.42%
Revenues by Source - Governmental Activities
Fiscal Year 2008-2009
Culture and recreation expenses increased 12.36% in the current fiscal year due to
increased funding for libraries. Welfare expenses increased 14.24% primarily due to
increases in the Home Program and Youth Build grants. Education expenses increased
10.14% as a result of increased Forest Fee funding for schools.
18
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Program Revenues and Expenses for Governmental Activties Fiscal
Year 2008-2009
(In thousands) Expenses
Revenues
As shown in the “Revenues by Source for Governmental Activities” chart and “Program
Revenues and Expenses for Governmental Activities” chart, for governmental activities
overall, without regard to program, operating grants and contributions are the largest
single source of funds (29.11%), followed by sales tax (21.88%), and state shared
revenue (17.28%). Public safety is the largest function in expense ($33.17 million),
followed by general government ($32.36 million), and highways and streets ($16.66
million).
FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS
The County reported four major funds for this fiscal year – General Fund, Public
Works/HURF, Jail District, and Parks and Open Spaces Tax. At year-end, the County’s
governmental funds reported combined fund balances of $79.14 million, which is a
decrease of $1.05 million from last year or a decrease of 1.31%. Of the total, $78.58
million (99.30%) constitutes unreserved fund balance.
Revenues for governmental functions overall decreased by $1.99 million, a decrease of
1.66% and expenditures for governmental functions decreased by $15.95 million, a
decrease of 11.76%, in the current fiscal year. The large decrease in expenditures was
due to the expenditures for debt defeasance incurred in the prior fiscal year.
19
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
Governmental function expenditures exceeded governmental fund revenues by $1.82
million in the current fiscal year and the fund balance decreased by $1.05 million.
The General Fund is the County’s primary operating fund. At the end of the current
fiscal year, the unreserved fund balance of the General Fund was $24.96 million.
Unreserved fund balance represents 99.31% of General Fund’s total fund balance. The
General Fund’s fund balance decreased by $2.50 million. The primary reason for this
decrease was increases in expenditures that were not offset by increases in revenues.
The Public Works/HURF Fund’s fund balance decreased by $2.15 million in the current
fiscal year. This was primarily the result of lower expenditures in fiscal year 2008.
The Jail District Fund’s fund balance increased by $1.69 million in the current fiscal year
as a result of normal operations.
The Parks and Open Spaces Tax Fund’s fund balance increased by $1.89 million in the
current fiscal year due to normal operations.
General Fund Budgetary Highlights
• The final budgeted expenditures for the General Fund at year-end were $3.11
million less than the original adopted budget. This decrease offset increases in
other fund’s budgets keeping the overall County budget from exceeding the
adopted budget ceiling. For the General Fund, actual revenues were under the
final budget by $3.22 million while actual expenditures were $21.57 million less
than the final budget.
• The budget variance for revenues in the General Fund was primarily due to
unanticipated decreases in state shared sales tax, county sales tax and building
permits revenue. All of these decreases were the result of the County’s
deteriorating economy. The expenditures variance was primarily unexpended
contingency funds and fiscal reserves.
Capital Asset and Debt Administration
Capital Assets
During the current fiscal year, the County completed and continued various construction
projects that added $1.14 million to the County’s buildings inventory and $4.84 million
to the County’s infrastructure inventory. Other capital expenses added $.89 million to
the County’s land inventory and $.71 million to the County’s equipment inventory. The
County’s overall capital asset inventory decreased $.12 million net of increases in
depreciation.
20
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
The following table reflects the changes in capital assets for the County for the fiscal year
2009 compared to fiscal year 2008.
2009 2008
Land $ 23.68 $ 22.79
Buildings 59.52 60.56
Machinery and Equipment 10.21 12.60
Infrastructure 43.96 41.95
Construction in Progress 3.03 2.62
Total $ 140.40 $ 140.52
Governmental Activities
(net of depreciation)
(in millions)
Additional information on Coconino county’s capital assets can be found in Note 4 on
page 51 of this report.
Long-term Debt
At the end of the current fiscal year, the County had $8.34 million in revenue bonds and
$2.36 million in special assessment debt outstanding. This includes $795,000 in special
assessment bonds issued in the current year. Additional information on Coconino
County’s long-term debt can be found in Note 5 on pages 52-55 of this report.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS
The County utilizes a Ten-Year Financial Plan, which is updated quarterly, to forecast the
County’s financial future. The largest single revenue source is State shared sales taxes.
Various sales taxes, including State shared sales taxes, constitute 53% of the County’s
government-wide general revenues and over 63% of General Fund revenues. This makes
the County’s revenues sensitive to slumps in the economy. County staff incorporated
historical trends, local economic trends and national and global economic trends into the
County’s fiscal 2010 budget. FY09 was a difficult financial year for the County, and
especially for sales tax revenues. Given how far sales tax revenues fell in FY09, we are
anticipating a slow recovery to begin in FY10. County staff is forecasting conservative
increases to County sales taxes (3.5%), reflecting a local recession continuing through
early FY10, with some gradual economic turnaround beginning in the second quarter.
The State shared sales tax return growth estimate was more aggressive (4%), reflecting an
earlier recovery from the deeper recession that occurred in FY08 and FY09 at the State
level. During the development of the budget, there was much uncertainty about the
budget for the State of Arizona. The County receives funding from the State to offset the
cost of many of our mandated programs. In FY09 State grant revenue was reduced
10.7% for those programs. The FY10 funding from State grant revenues is anticipated to
be reduced as the State finalizes its budget. Overall revenues and General Fund revenues
21
Coconino County
MANAGEMENT’S DISCUSSION AND ANALYSIS
22
are estimated to increase by approximately 16% due to anticipated American Recovery
and Reinvestment Act funding. General Fund revenues are anticipated to decrease 1%
because the projected increase in sales taxes will be offset by the loss of one-time
Payments In Lieu of Taxes funding that was received in FY09. In response to the
revenue reductions we have seen County-wide, the FY10 budget included about a 2.5%
reduction to General Fund programs from the FY09 “base” level.
The major issues addressed in the fiscal 2010 budget are:
• Impacts from the State shifting costs to the County while reducing revenues to
plug the State budget deficit
• Maintaining levels of service with reduced revenues
• Keeping employee pay “whole” after retirement and benefit rate changes
• Funding an Assessor system in response to the loss of a State supported system
• Matching recurring expenditures with recurring revenue streams
The County’s financial planning is based on conservative revenue estimates and the use
of a strategic planning process to focus the expenditure of limited resources on meeting
the current and future needs of its citizens.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors,
and creditors with a general overview of the County’s finances and to show the County’s
accountability for the money it receives. If you have questions about this report or need
additional financial information, contact the County’s Finance Department, Coconino
County, 219 East Cherry Avenue, Flagstaff, Arizona 86001.
BASIC FINANCIAL STATEMENTS
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Governmental
Activities
Assets
Cash and cash equivalents $ 74,165,447
Investments 603,163
Cash and investments held by trustee 2,397,123
Receivables (net of allowances for uncollectibles):
Property taxes 543,441
Accounts 1,170,480
Special assessments 2,533,716
Jail district sales tax 2,024,548
Accrued interest 359,407
Due from other governments 12,986,980
Inventories 282,131
Prepaid items 148,442
Capital assets, not being depreciated 26,708,657
Capital assets, being depreciated, net 113,690,410
Total assets 237,613,945
Liabilities
Accounts payable 4,532,903
Accrued payroll and employee benefits 3,335,173
Due to other governments 576,929
Deposits held for others 1,823,656
Deferred revenues 2,720
Bond interest payable 189,160
Noncurrent liabilities
Due within 1 year 6,007,545
Due in more than 1 year 10,853,773
Total liabilities 27,321,859
Net Assets
Invested in capital assets, net of related debt 129,694,889
Restricted for:
Highways and streets 19,204,943
Education 902,746
Debt service 7,469,063
Capital projects 768,807
Unrestricted 52,251,638
Total net assets $ 210,292,086
Coconino County
Statement of Net Assets
June 30, 2009
See accompanying notes to financial statements.
23
24
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Net (Expenses) Revenues and
Operating Capital Changes in Net assets
Charges for Grants and Grants and
Expenses Services Contributions Contributions Total
Functions/Programs
Primary government:
Governmental activities:
General government $ 32,364,030 $ 7,316,495 $ 1,621,829 $ (23,425,706)
Public safety 33,164,905 3,421,790 5,353,626 (24,389,489)
Highways and streets 16,655,737 1,152,294 11,805,961 $ 71,977 (3,625,505)
Sanitation 3,274,456 1,375,437 1,189,162 46,543 (663,314)
Health 12,692,864 1,316,870 4,769,679 (6,606,315)
Welfare 7,615,522 1,262,876 4,553,815 (1,798,831)
Culture and recreation 7,814,879 1,170,109 555,600 (6,089,170)
Education 4,892,986 95,016 4,732,167 (65,803)
Interest on long-term debt 512,256 (512,256)
Total governmental activities $ 118,987,635 $ 17,110,887 $ 34,581,839 $ 1 18,520 (67,176,389)
7,935,524
4,708,037
2,011,055
189,318
11,497,627
11,486,443
2,871,495
92,118
41,944
15,287,328
5,240,676
2,866,290
2,388,053
2,100
376,842
66,994,850
(181,539)
210,473,625
Net assets, June 30, 2009 $ 210,292,086
Coconino County
Statement of Activities
Year Ended June 30, 2009
Program Revenues
Miscellaneous
Total general revenues
Change in net assets
Net assets, July 1, 2008
Shared revenue - state vehicle license tax
Grants and contributions not restricted to specific programs
Investment earnings
Gain on disposal of capital assets
Parks and open spaces sales tax
Excise tax
Franchise tax
Shared revenue - state sales tax
Property taxes, levied for flood control
Property taxes, levied for accommodation school
General county sales tax
Jail district sales tax
General revenues
Taxes:
Property taxes, levied for general purposes
Property taxes, levied for library
See accompanying notes to financial statements.
25
General Fund
Public
Works/HURF
Fund
Jail District
Fund
Assets
Cash and cash equivalents $ 21,408,548 $ 16,135,412 $ 5,635,435
Investments
Cash and investments held by trustee 2,385,007
Receivables (net of allowances for uncollectibles):
Property taxes 279,156
Accounts 208,610 1,478 272,907
Special assessments
Jail district sales tax 2,024,548
Accrued interest 99,353 74,370 26,736
Advances to other funds
Due from:
Other funds 8,117,138 552,009 137,436
Other governments 5,450,173 2,077,323 364,612
Inventories 38,887
Prepaid items 134,612 55
Total assets $ 35,736,477 $ 18,840,647 $ 10,846,681
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 2,050,205 $ 630,740 $ 449,254
Accrued payroll and employee benefits 1,591,055 298,998 378,186
Advances from other funds
Due to:
Other funds 4,777,083 416,552 317,067
Other governments 205,578 30,330
Deposits held for others 1,754,763
Bond interest payable 189,160
Revenue bonds payable 2,195,000
Deferred revenue 227,696 2,400
Total liabilities 10,606,380 1,346,290 3,561,397
Fund balances:
Reserved for:
Inventories 38,887
Prepaid items 134,612 55
Debt service
Unreserved, reported in:
General fund 24,956,598
Special revenue funds 17,494,302 7,285,284
Capital projects funds
Total fund balances 25,130,097 17,494,357 7,285,284
Total liabilities and fund balances $ 35,736,477 $ 1 8,840,647 $ 10,846,681
Coconino County
Balance Sheet
Governmental Funds
June 30, 2009
See accompanying notes to financial statements
26
Parks and
Open Spaces
Tax Fund
Other
Governmental
Funds
Total
Govermental
Funds
$ 11,175,573 $ 1 7,699,377 $ 7 2,054,345
603,163 603,163
12,116 2,397,123
264,285 543,441
675,145 1,158,140
2,533,716 2,533,716
2,024,548
50,101 99,200 349,760
456,394 456,394
105,161 6,893,057 15,804,801
506,168 4,588,704 12,986,980
38,887
13,775 148,442
$ 11,837,003 $ 33,838,932 $ 111,099,740
$ 1 ,322,822 $ 4,453,021
948,986 3,217,225
456,394 456,394
$ 1,484,872 9,094,470 16,090,044
341,021 576,929
68,893 1,823,656
189,160
2,195,000
2,731,931 2,962,027
1,484,872 14,964,517 31,963,456
38,887
13,775 148,442
370,905 370,905
24,956,598
10,352,131 17,312,944 52,444,661
1,176,791 1,176,791
10,352,131 18,874,415 79,136,284
$ 1 1,837,003 $ 33,838,932 $ 1 11,099,740
27
28
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Coconino County
Reconciliation of the Balance Sheet to the Statement of Net Assets
Governmental Funds
June 30, 2009
Fund balances—total governmental funds $ 79,136,284
Amounts reported for governmental activities in the Statement of Net Assets
are different because:
Capital assets used in governmental activities are not financial resources
and therefore, are not reported in the funds. 139,170,465
Some receivables are not available to pay for
current-period expenditures and therefore, are deferred in the funds. 2,959,307
Internal service funds are used by management to charge the costs of
certain activities, such as automotive maintenance, to individual funds.
The assets and liabilities of the internal service fund are included
in governmental activities in the Statement of Net Assets. 3,692,348
Some liabilities, including bonds payable, compensated absences
payable, and claims and judgments payable, are not due and payable
in the current period and therefore, are not reported in the funds. (14,666,318)
Net assets of governmental activities $ 210,292,086
See accompanying notes to financial statements.
29
Coconino County
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2009
General Fund
Public
Works/HURF
Fund Jail District Fund
Revenues:
Property taxes $ 7,864,398
Other taxes 14,838,752 $ 2,036,697 $ 1 1,486,444
Special assessments
Licenses and permits 867,759 13,640
Fees, fines, and forfeits 1,233,056
Intergovernmental 19,637,037 9,115,384 98,708
Charges for services 2,512,763 2,337,421
Investment earnings 986,352 599,318 205,892
Contributions 166,379
Miscellaneous 810,460 2,234 3,720
Total revenues 48,916,956 11,767,273 14,132,185
Expenditures:
Current:
General government 28,061,796
Public safety 12,490,595 12,175,349
Highways and streets 741,344 16,145,720
Sanitation
Health 3,676,222
Welfare 983,520
Culture and recreation 1,064,907
Education 523,903
Capital outlay
Debt service:
Principal 2,195,000
Interest and other charges 383,992
Total expenditures 47,542,287 16,145,720 14,754,341
Excess (deficiency) of revenues
over (under) expenditures 1,374,669 (4,378,447) (622,156)
Other financing sources (uses):
Sale of capital assets 2,100
Bond proceeds
Transfers in 3,143,345 3,368,542 2,308,556
Transfers out (7,016,623) (1,146,663)
Total other financing sources (uses) (3,873,278) 2,223,979 2,308,556
Net change in fund balances (2,498,609) (2,154,468) 1,686,400
Fund balances, July 1, 2008 27,628,706 19,648,825 5,598,884
Fund balances, June 30, 2009 $ 25,130,097 $ 17,494,357 $ 7,285,284
See accompanying notes to financial statements.
30
Parks and Open
Spaces Tax
Fund
Other
Governmental
Funds
Total
Governmental
Funds
$ 6 ,818,925 $ 14,683,323
$ 2,871,495 1,767 31,235,155
533,246 533,246
714,785 1,596,184
1,403,286 2,636,342
23,279,980 52,131,109
5,765,974 10,616,158
401,528 748,256 2,941,346
332,432 498,811
223,585 1,039,999
3,273,023 39,822,236 117,911,673
3,042,770 31,104,566
6,715,652 31,381,596
105,392 16,992,456
3,146,581 3,146,581
8,685,296 12,361,518
6,534,299 7,517,819
6,981,078 8,045,985
4,206,385 4,730,288
1,434,116 1,434,116
313,901 2,508,901
128,264 512,256
41,293,734 119,736,082
3,273,023 (1,471,498) (1,824,409)
2,100
795,000 795,000
6,661,233 15,481,676
(1,379,711) (5,965,758) (15,508,755)
(1,379,711) 1,490,475 770,021
1,893,312 18,977 (1,054,388)
8,458,819 18,855,438 80,190,672
$ 10,352,131 $ 1 8,874,415 $ 79,136,284
31
Coconino County
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities
Governmental Funds
Year Ended June 30, 2009
Net change in fund balances—total governmental funds $ (1,054,388)
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.
Capital outlay $ 7,889,520
Depreciation expense (7,573,780) 315,740
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds. 817,557
Debt proceeds provide current financial resources to governmental funds,
but issuing debt increases long-term liabilities in the Statement of Net
Assets. Repayment of debt principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in
the Statement of Net Assets.
Debt issued or incurred ( 795,000)
Principal repaid 2,508,901 1,713,901
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and therefore, are not reported as
expenditures in governmental funds.
Increase in compensated absences ( 263,186)
Increase in claims and judgments (9,908)
Increase in future postemployment health benefits (1,300,722) (1,573,816)
Internal service funds are used by management to charge the costs of
certain activities, such as automotive maintenance, to individual funds.
The net loss of the internal service fund is reported with governmental
activities in the Statement of Activities. (400,533)
Change in net assets of governmental activities $ (181,539)
(181,539)
$ -
See accompanying notes to financial statements.
32
Coconino County
Statement of Net Assets
Proprietary Fund
June 30, 2009
Governmental
Activities -
Internal Service
Fund
Assets
Current assets:
Cash and cash equivalents $ 2,111,102
Receivables (net of allowances for uncollectibles):
Accounts 12,340
Accrued interest 9,647
Due from other funds 289,539
Inventories 243,244
Total current assets 2,665,872
Noncurrent assets:
Capital assets, net of accumulated depreciation:
Buildings, net 72,473
Equipment, net 1,156,129
Capital assets, net 1,228,602
Total noncurrent assets 1,228,602
Total assets 3,894,474
Liabilities
Current liabilities:
Accounts payable 79,882
Accrued payroll and employee benefits 117,948
Due to other funds 4,296
Total current liabilities 202,126
Total liabilities 202,126
Net Assets
Invested in capital assets, net of related debt 1,228,602
Unrestricted 2,463,746
Total net assets $ 3,692,348
See accompanying notes to financial statements.
33
Coconino County
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Fund
Year Ended June 30, 2009
Governmental
Activities -
Internal Service
Fund
Operating revenues:
Charges for services $ 3,129,040
Total operating revenues 3,129,040
Operating expenses:
Personal services 734,538
Professional services 187,840
Supplies 2,011,323
Utilities 20,023
Repairs and maintenance 129,514
Travel 11,041
Depreciation 537,144
Total operating expenses 3,631,423
Operating loss (502,383)
Nonoperating revenues:
Investment earnings 74,771
Transfers from other funds 27,079
Total nonoperating revenues 101,850
Decrease in net assets (400,533)
Total net assets, July 1, 2008 4,092,881
Total net assets, June 30, 2009 $ 3,692,348
See accompanying notes to fianancial statements.
34
Coconino County
Statement of Cash Flows
Proprietary Fund
Year Ended June 30, 2009
Governmental
Activities-
Internal
Service Fund
Cash flows from operating activities:
Receipts from other funds for services provided $ 3,092,027
Payments to suppliers and providers of goods
and services (2,419,069)
Payments to employees (724,846)
Net cash used for operating activities (51,888)
Cash flows from noncapital financing activities:
Cash transfers from other funds 27,079
Net cash provided by noncapital financing activities 27,079
Cash flows from capital and related financing activities:
Purchases of capital assets (6,192)
Net cash used for capital and related financing activities (6,192)
Cash flows from investing activities:
Interest received on investments 80,022
Net cash provided by investing activities 80,022
Net increase in cash and cash equivalents 49,021
Cash and cash equivalents, July 1, 2008 2,062,081
Cash and cash equivalents, June 30, 2009 $ 2,111,102
Reconciliation of operating loss to net cash used for operating activities
Operating loss $ (502,383)
Adjustments to reconcile operating loss to
net cash used for operating activities:
Depreciation 537,144
Changes in assets and liabilities:
Increase in:
Accrued payroll and employee benefits 20,733
Decrease in:
Due from other funds 65,663
Inventories 46,611
Accounts receivable 7,465
Accounts payable (116,977)
Due to other funds (110,144)
Net cash used for operating activities $ (51,888)
See accompanying notes to financial statements.
35
Coconino County
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2009
Investment Trust
Funds Agency Fund
Assets
Cash and cash equivalents $ 100,444,080 $ 1,198,140
Cash and investments held by trustee 658,736
Interest and dividends receivable 461,425
Total assets 100,905,505 $ 1,856,876
Liabilities
Deposits held for others $ 1,596,217
Due to other governments 260,659
Total liabilties $ 1,856,876
Net Assets
Held in trust for investment trust participants $ 100,905,505
See accompanying notes to financial statements.
36
Coconino County
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
June 30, 2009
Investment
Trust Funds
Additions:
Contributions from participants $ 339,099,324
Investment earnings 6,357,881
Total additions 345,457,205
Deductions:
Distributions to participants 334,830,919
Total deductions 334,830,919
Change in net assets 10,626,286
Net assets, July 1, 2008 90,279,219
Net assets, June 30, 2009 $ 100,905,505
(100,905,505.00)
0.46
See accompanying notes to financial statements.
37
Coconino County
Notes to Financial Statements
June 30, 2009
38
Note 1 – Summary of Significant Accounting Policies
The accounting policies of Coconino County conform to generally accepted accounting
principles applicable to governmental units adopted by the Governmental Accounting Standards
Board (GASB).
During the year ended June 30, 2009, Coconino County implemented the provisions of GASB
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions. GASB Statement No. 45 establishes governmental employer
accounting and financial reporting requirements for postemployment benefits other than
pensions.
A. Reporting Entity
The County is a general purpose local government that is governed by a separately elected board
of five county supervisors. The accompanying financial statements present the activities of the
County (the primary government) and its component units.
Component units are legally separate entities for which the County is considered financially
accountable. Blended component units, although legally separate entities, are in substance part of
the County’s operations. Therefore, 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 discussed below has a June 30 year-end. The County has
no discretely presented component units.
Coconino County
Notes to Financial Statements
June 30, 2009
39
The following table describes the County’s component units:
Component Unit
Description; Criteria
for Inclusion
Reporting
Method
For Separate
Financial
Statements
Coconino County
Flood Control District
A tax-levying district that provides
flood control systems; the County’s
Board of Supervisors serves as the
board of directors
Blended Not available
Coconino County
Library District
Provides and maintains library
services for the County’s residents;
the County’s Board of Supervisors
serves as the board of directors
Blended Not available
Coconino County
Special Assessment
Districts
Constructs or improves sidewalks,
curbs and gutters, irrigation systems,
and street lighting within the County;
the County’s Board of Supervisors
serves as the board of directors
Blended Not available
Coconino County
Street Lighting Districts
Operates and maintains street lighting
in areas outside local city
jurisdictions; the County’s Board of
Supervisors serves as the board of
directors
Blended Not available
Coconino County Jail
District
A tax-levying district that acquires,
constructs, operates, maintains, and
finances county jails and jail systems;
the County’s Board of Supervisors
serves as the governing board
Blended Not available
Coconino County
Notes to Financial Statements
June 30, 2009
40
B. Basis of Presentation
The basic financial statements include both government-wide statements and fund financial
statements. The government-wide statements focus on the County as a whole, while the fund
financial statements focus on major funds. Each presentation provides valuable information that
can be analyzed and compared between years and between governments to enhance the
usefulness of the information.
Government-wide statements—provide information about the primary government (the
County) and its component units. The statements include a statement of net assets and a
statement of activities. These statements report the financial activities of the overall government,
except for fiduciary activities. Governmental activities generally are financed through taxes and
intergovernmental revenues.
A statement of activities presents a comparison between direct expenses and program revenues
for each function of the County’s governmental activities. Direct expenses are those that are
specifically associated with a program or function and, therefore, are clearly identifiable to a
particular function. The County does not allocate indirect expenses to programs or functions.
Program revenues include:
• charges to customers or applicants for goods, services, or privileges provided,
• operating grants and contributions, and
• capital grants and contributions, including special assessments.
Revenues that are not classified as program revenues, including internally dedicated resources
and all taxes, are reported as general revenues.
Generally, the effect of interfund activity has been eliminated from the government-wide
financial statements to minimize the double counting of internal activities. However, charges for
interfund services provided and used are not eliminated if the prices approximate their external
exchange values.
Coconino County
Notes to Financial Statements
June 30, 2009
41
Fund financial statements—provide information about the County’s funds, including fiduciary
funds and blended component units. Separate statements are presented for the governmental,
proprietary, and fiduciary fund categories. The emphasis of fund financial statements is on major
governmental funds, each displayed in a separate column. All remaining governmental funds are
aggregated and reported as nonmajor funds. Fiduciary funds are aggregated and reported by
fund type.
Proprietary fund revenues and expenditures are classified as either operating or nonoperating.
Operating revenues and expenses generally result from transactions associated with the fund’s
principal activity. Accordingly, revenues, such as user charges, in which each party receives and
gives up essentially equal values, are operating revenues. Other revenues, such as investment
earnings, result from transactions in which the parties do not exchange equal values and are
considered nonoperating revenues. Operating expenses include the cost of services,
administrative expenses, and depreciation on capital assets.
The County reports the following major governmental funds:
The General Fund is the County’s primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Public Works/HURF Fund is used to account for highway user fees restricted for the
construction, repair, and maintenance of county roads.
The Jail District Fund is used to account for jail operations and jail capital improvements that are
funded by a one-half cent sales tax.
The Parks and Open Spaces Tax Fund is used to account for the collection of a one-eighth cent
sales tax to be used for parks and open space acquisitions and improvements.
Coconino County
Notes to Financial Statements
June 30, 2009
42
The County reports the following fund types:
The internal service fund accounts for automotive maintenance and operation provided to the
County’s departments or to other governments on a cost-reimbursement basis.
The investment trust funds account for pooled and nonpooled assets held and invested by the
County Treasurer on behalf of other governmental entities.
The agency fund accounts for assets held by the County as an agent for the State and various
local governments, and for property taxes collected and distributed to the State, local school
districts, community college districts, and special districts.
C. Basis of Accounting
The government-wide, proprietary fund, and fiduciary fund financial statements are presented
using the economic resources measurement focus, with the exception of the agency fund, and the
accrual basis of accounting. The agency fund is custodial in nature and does not have a
measurement focus. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place. Property taxes are
recognized as revenue in the year for which they are levied. Grants and donations are recognized
as revenue as soon as all eligibility requirements the provider imposed have been met.
Governmental funds in the fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Under this method,
revenues are recognized when they become both measurable and available. The County
considers all revenues reported in the governmental funds to be available if the revenues are
collected within 60 days after year-end. The County’s major revenue sources that are subject to
accrual are state-shared sales taxes and fuel taxes, county sales tax, property taxes, and grants
from the federal and state government. Expenditures are recorded when the related fund liability
is incurred, except for principal and interest on general long-term debt, claims and judgments,
and compensated absences, which are recognized as expenditures to the extent they are due and
payable. General capital asset acquisitions are reported as expenditures in governmental funds.
Issuances of general long-term debt and acquisitions under capital lease agreements are reported
as other financing sources.
Coconino County
Notes to Financial Statements
June 30, 2009
43
Under the terms of grant agreements, the County funds certain programs by a combination of
grants and general revenues. Therefore, when program expenses are incurred, there are both
restricted and unrestricted net assets available to finance the program. The County applies grant
resources to such programs before using general revenues.
D. Cash and Investments
For purposes of its statement of cash flows, the County considers cash on hand, demand deposits,
cash on deposit with the County Treasurer, and only those highly liquid investments with a
maturity of 3 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
1 year or less at time of purchase are stated at amortized cost. All other investments are stated at
fair value.
E. Inventories
The County accounts for its inventories in the governmental funds using the consumption
method. Inventories of the governmental funds are recorded as assets when purchased and
expensed when consumed. 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 cost using
the first-in, first-out method of valuation.
Inventories in the government-wide and the proprietary fund’s financial statements are recorded
as assets when purchased and expensed when consumed. These inventories are stated at cost
using the first-in, first-out, and moving weighted average methods of valuation, for the
government-wide financial statements and the weighted average method of valuation for the
proprietary fund’s financial statement.
F. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the governmental-wide and fund financial statements.
Coconino County
Notes to Financial Statements
June 30, 2009
44
G. Property Tax Calendar
The County levies real and personal 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.
A lien assessed against real and personal property attaches on the first day of January preceding
assessment and levy.
H. Capital Assets
Capital assets are reported at actual cost, or estimated historical cost if historical records are not
available. Donated assets are reported at estimated fair value at the time received.
Capitalization thresholds (the dollar values above which asset acquisitions are added to the
capital asset accounts), depreciation methods, and estimated useful lives of capital assets
reported in the government-wide statements and proprietary funds are as follows:
Capitalization
Threshold
Depreciation
Method
Estimated
Useful Life
Land All N/A N/A
Construction in progress $ 5,000 N/A N/A
Buildings 5,000 Straight-Line 25-40 Years
Machinery and equipment 5,000 Straight-Line 3-25 Years
Infrastructure 5,000 Straight-Line 15-50 Years
I. Investment Earnings
Investment earnings is composed of interest, dividends, and net changes in the fair value of
applicable investments.
Coconino County
Notes to Financial Statements
June 30, 2009
45
J. Compensated Absences
Compensated absences consist of vacation leave, compensatory time, and a calculated amount of
sick leave earned by employees based on services already rendered.
Employees may accumulate up to 240 hours of vacation. Upon termination of employment, all
unused and unforfeited vacation benefits are paid to employees. Accordingly, vacation benefits
are accrued as a liability in the government-wide and proprietary fund’s financial statements.
Non-exempt, eligible employees may accumulate up to 60 hours of compensatory time.
Accruals beyond 60 hours require approval by the county manager. The Fair Labor Standards
Act requires the pay off of any compensatory time balance above 240 hours for most non-exempt
positions and 480 hours for public safety positions. This is done periodically throughout the year.
Upon termination all unused compensatory time is paid to the employee. Accordingly,
compensatory time is accrued as a liability in the government-wide and proprietary fund’s
financial statements.
Employees may accumulate up to 1,040 of sick leave hours. Generally, sick leave benefits
provide for ordinary sick pay and are cumulative but are forfeited upon termination of
employment. However, for employees who terminate with a minimum of 20 years of continuous
service, sick leave benefits do vest. Such eligible terminating employees are compensated at the
rate of 1 day for each 4 sick days accrued. Accordingly, this vested sick leave is accrued as a
liability in the government-wide and proprietary fund’s financial statements. A liability for any
of these amounts is reported in the governmental funds financial statements only if they have
matured, for example, as a result of employee resignations and retirements by fiscal year end.
Note 2 – Deposits and Investments
Arizona Revised Statutes (A.R.S.) authorize the County to invest public monies in the State
Treasurer’s investment pool; obligations issued or guaranteed by the United States or any of the
senior debt of its agencies, sponsored agencies, corporations, sponsored corporations, or
instrumentalities; specified state and local government bonds; interest-earning investments such
as savings accounts, certificates of deposit, and repurchase agreements in eligible depositories;
and specified commercial paper, bonds, debentures, and notes issued by corporations organized
Coconino County
Notes to Financial Statements
June 30, 2009
46
and doing business in the United States. In addition, the County Treasurer may invest trust funds
in fixed income securities of corporations doing business in the United States or District of
Columbia.
Credit Risk
Statutes give the following requirements for credit risk:
1. Commercial paper must be rated P1 by Moody’s investors service or A1 or better by
Standard and Poor’s rating service.
2. Corporate bonds, debentures, and notes must be rated A or better by Moody’s investors
service or Standard and Poor’s rating service.
3. Fixed income securities must carry one of the two highest ratings by Moody’s investors
service and Standard and Poor’s rating service. If only one of the above-mentioned
services rates the security, it must carry the highest rating of that service.
Custodial credit risk
Statutes require collateral for demand deposits, certificates of deposit, and repurchase
agreements at 101 percent of all deposits not covered by federal depository insurance.
Concentration of credit risk
Statutes do not include any requirements for concentration of credit risk.
Interest rate risk
Statutes require that public monies invested in securities and deposits have a maximum maturity
of 5 years and that public operating fund monies invested in securities and deposits have a
maximum maturity of 3 years. Investment in repurchase agreements must have a maximum
maturity of 180 days.
Foreign currency risk
Statutes do not allow for foreign investments.
Deposits—At June 30, 2009, the carrying amount of the County’s deposits was $36,053,042 and
the bank balance was $37,078,830. The County does not have a formal policy with respect to
custodial credit risk.
Coconino County
Notes to Financial Statements
June 30, 2009
47
At June 30, 2009, $802,809 of the County’s bank balance was exposed to custodial risk as
follows:
Uninsured and Uncollateralized $802,809
Investments— The County’s investments at June 30, 2009, were as follows:
Investment Type Amount
U.S. agency securities $ 92,469,088
Corporate bonds 26,052,813
State Treasurer's investment pools 19,363,137
Money market mutual funds 2,778,205
Municipal bonds 1,032,626
Mutual funds-equity 16,167
$ 141,712,036
The State Board of Investment provides oversight for the State Treasurer’s pools. The fair value
of a participant’s position in the pool approximates the value of the participant’s pool shares and
the participant’s shares are not identified with specific investments.
Coconino County
Notes to Financial Statements
June 30, 2009
48
Credit risk— The County does not have a formal investment policy with respect to credit risk.
At June 30, 2009, credit risk for the County’s investments was as follows:
Investment Type Rating Rating Agency Amount
U.S. agency securities Aaa Moody's $ 92,159,649
State Treasurer's investment pool #7 Unrated Not applicable 19,353,203
Corporate bonds Aa2 Moody's 12,094,617
Corporate bonds Aaa Moody's 4,061,448
Corporate bonds Aa3 Moody's 2,666,018
Corporate bonds A1 Moody's 2,657,564
Mutual funds-debt Aaa Moody's 2,385,007
Corporate bonds A2 Moody's 2,308,813
Corporate bonds A3 Moody's 1,963,040
Municipal bonds Unrated Not Applicable 985,838
Mutual funds-debt Unrated Not Applicable 393,198
U.S. agency securities Unrated Not Applicable 309,439
Corporate bonds Aa1 Moody's 186,334
Corporate bonds Unrated Not Applicable 114,979
Municipal bonds A1 Moody's 46,788
State Treasurer's investment pool #5 AAAf/SI+ Standard and Poor's 9,934
$ 141,695,869
Custodial credit risk— For an investment, custodial credit risk is the risk that, in the event of the
counterparty’s failure, the County will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. The County does not have a
formal policy with respect to custodial credit risk. At June 30, 2009, the County had
$92,469,088 of U.S. agency securities, $1,032,626 of municipal bonds, $2,778,205 of mutual
funds-debt, and $26,052,813 of corporate bonds that were uninsured and held by the
counterparty.
Concentration of credit risk— The County does not have a formal policy with respect to
concentration of credit risk. Five percent or more of the County’s investments as of June 30,
2009, were in Federal Home Loan Mortgage Corporation, Federal Home Loan Bank, Federal
National Mortgage Association, Federal Farm Credit Bank, and General Electric Capital
Corporation bonds. These investments were 22.9 percent, 20.2 percent, 16.1 percent, 5.9 percent,
and 5.1 percent, respectively, of the County’s total investments.
Coconino County
Notes to Financial Statements
June 30, 2009
49
Interest rate risk— The County does not have a formal policy with respect to interest rate risk.
At June 30, 2009, the County had the following investments in debt securities:
Weighted Average
Investment Type Amount Maturity in Years
U.S. agency securities $ 92,159,649 3.774
State Treasurer's investment pool #7 19,353,203 0.030
Corporate bonds 12,094,617 1.599
Corporate bonds 4,061,448 0.130
Corporate bonds 2,666,018 0.393
Corporate bonds 2,657,564 0.231
Mutual funds-debt 2,385,007 0.386
Corporate bonds 2,308,813 0.237
Corporate bonds 1,963,040 0.229
Municipal bonds 985,838 3.630
U.S. agency securities 309,439 0.009
Mutual funds-debt 207,387 2.840
Mutual funds-debt 185,811 4.600
Corporate bonds 186,334 0.033
Corporate bonds 114,979 0.000
Municipal bonds 46,788 0.141
State Treasurer's investment pool #5 9,934 0.110
$ 141,695,869
Coconino County
Notes to Financial Statements
June 30, 2009
50
A reconciliation of cash and investments to amounts shown on the Statements of Net Assets
follows:
Cash, deposits, and investments:
Cash on hand $ 1,701,611
Amount of deposits 36,053,042
Amount of investments 141,712,036
Total $ 179,466,689
Governmental Investment Agency
Statement of Net Assets: Activities Trust Funds Fund Total
Cash and cash
equivalents $ 74,165,447 $ 100,444,080 $ 1,198,140 $ 1 75,807,667
Investments 603,163 603,163
Cash and investments
held by trustees 2,397,123 658,736 3,055,859
Total $ 77,165,733 $ 1 00,444,080 $ 1 ,856,876 $ 1 79,466,689
Note 3 – Receivables
Due from other governments
Amounts due from other governments at June 30, 2009, include $2,357,386 and $1,741,637 in
state-shared revenue from sales taxes and fuel taxes, respectively; $476,860 from the State of
Arizona for state vehicle license tax; $2,027,439 in county sales tax; $506,168 in parks and open
space sales tax; $2,622,959 in grants from the federal government; $469,387 in grants from
various state agencies; and $1,118,219 from antiracketeering forfeitures. The balance of
$1,666,925 is composed of miscellaneous receivables from federal, state, and local governments.
Coconino County
Notes to Financial Statements
June 30, 2009
51
Note 4 – Capital Assets
Capital asset activity for the year ended June 30, 2009, was as follows:
Balance Balance
Governmental activities: 7/1/2008 Increases Decreases 6/30/2009
Capital assets not being depreciated:
Land $ 22,786,675 $ 890,951 $ 23,677,626
Construction in progress 2,619,197 6,018,474 $ 5,606,640 3,031,031
Total capital assets not being depreciated 25,405,872 6,909,425 5,606,640 26,708,657
Capital assets being depreciated:
Buildings 83,297,863 1,136,050 84,433,913
Machinery and equipment 33,608,241 711,083 34,319,324
Infrastructure 79,734,486 4,841,516 84,576,002
Total capital assets being depreciated 196,640,590 6,688,649 203,329,239
Less accumulated depreciation for:
Buildings 22,738,132 2,179,196 24,917,328
Machinery and equipment 21,005,094 3,104,976 24,110,070
Infrastructure 37,784,679 2,826,752 40,611,431
Total accumulated depreciation 81,527,905 8,110,924 89,638,829
Total capital assets being depreciated, net 115,112,685 (1,422,275) 113,690,410
Total $ 140,518,557 $ 5,487,150 $ 5,606,640 $ 140,399,067
Depreciation expense was charged to functions as follows:
General government $ 9 48,612
Public safety 997,429
Highways and streets 4,572,261
Sanitation 255,352
Health 130,448
Welfare 75,361
Culture and recreation 494,080
Education 100,237
Internal service fund 537,144
Total governmental activities depreciation expense $ 8,110,924
Coconino County
Notes to Financial Statements
June 30, 2009
52
Note 5 – Long-Term Liabilities
The following schedule details the County’s long-term liability and obligation activity for the
year ended June 30, 2009.
Governmental Activities
Balance
July 1, 2008 Additions Reductions
Balance
June 30, 2009
Due within
1 year
Bonds payable:
Revenue bonds $ 10,435,000 $ 2 ,095,000 8,340,000 $ 2 ,195,000
Special assessment bonds with
governmental commitment 1,885,208 $ 795,000 3 16,030 2,364,178 335,431
Total bonds payable 12,320,208 795,000 2 ,411,030 10,704,178 2,530,431
Compensated absences payable 4,306,840 3,167,298 2 ,904,112 4,570,026 3,290,191
Claims and judgments payable 276,484 53,494 4 3,586 286,392 99,834
Future postemployment health
benefit liability (Note 7) 1,386,909 8 6,187 1,300,722 87,089
Total governmental activities long-term
liabilities $ 16,903,532 $ 5,402,701 $ 5 ,444,915 $ 16,861,318 $ 6 ,007,545
Revenue Bonds—The County’s revenue bonds were issued specifically to finance a jail and
related facilities. Future revenues from a voter-approved sales tax are pledged to repay
$21,130,000 and $3,630,000 in revenue bonds issued in 1998 and 2000, respectively. The
revenue bonds are payable from Jail District sales tax revenues through 2013. At June 30, 2009,
$8,340,000 in principal remains outstanding, along with future interest payments totaling
$730,236, to be repaid by future Jail District sales tax revenues. For the fiscal year ended June
30, 2009, net revenues available for service of this debt was $11,486,444. The principal and
interest paid in fiscal year 2009 was $2,578,992 (22.45% of available net revenues). The annual
principal and interest payments on the revenue bonds are expected to require approximately 21%
of net revenues. They are generally noncallable with interest payable semiannually.
Coconino County
Notes to Financial Statements
June 30, 2009
53
Revenue bonds outstanding at June 30, 2009, were as follows:
Description
Original
Amount
Maturity
Ranges
Interest
Rates
Outstanding
Principal
Revenue bonds $ 24,760,000 7/1/2006-12 4.25-5.0% $ 8,340,000
The following schedule details debt service requirements to maturity for the County’s revenue
bonds payable at June 30, 2009:
Year
Ending
June 30 Principal Interest
2010 $ 2,195,000 $ 328,635
2011 2,290,000 226,213
2012 1,885,000 131,063
2013 1,970,000 44,325
Total $ 8,340,000 $ 730,236
Revenue Bonds
Governmental Activities
Certificates of Participation—In prior years the County defeased certain certificates of
participation debt by depositing funds in an irrevocable trust to provide for all future debt service
on the certificates of participation. Accordingly, the trust account and the liability for these
defeased certificates of participation are not included in the County’s financial statements. At
June 30, 2009, the following certificates of participation were considered defeased:
Series 2001 $6,230,000
Special Assessment Bonds—Special assessment bonds are secured by pledges of revenues from
special assessments levied against the benefiting property owners. Proceeds from special
assessment bonds are used for improvements such as paving, street lighting, and sewers.
Payments made by the assessed property owners are pledged as collateral. In the event of default
by the property owner, the lien created by the assessment is sold at public auction and the
proceeds are used to offset the default assessment. Annual principal and interest on the bonds
are expected to require 100% of net revenues. The total principal and interest to be paid is
generally noncallable with interest payable semiannually. The principal and interest paid in fiscal
year 2009 was $442,165 (82.92% of available net revenues). The total principal and interest
remaining on the bonds is $2,840,697, payable through July 2019. The original amount of special
assessment bonds issued in prior years was $4,391,217. In addition, special assessment bonds
totaling $795,000 were issued for road improvements in fiscal year 2009.
Coconino County
Notes to Financial Statements
June 30, 2009
54
Special assessment bonds outstanding at June 30, 2009, were as follows:
Description
Original
Amount
Maturity
Ranges
Interest
Rates
Outstanding
Principal
Special assessment bonds with
governmental commitment $ 5,186,217 7/1/2006-19 2.47-7.50% $ 2,364,178
The following schedule details debt service requirements to maturity for the County’s special
assessment bonds payable at June 30, 2009:
Year
Ending
June 30 Principal Interest
2010 $ 335,431 $ 116,565
2011 365,090 99,591
2012 384,682 81,855
2013 398,291 63,166
2014 417,019 43,807
2015 - 2019 367,665 66,493
2020 96,000 5,042
Total $ 2,364,178 $ 476,519
Special
Assessment Bonds
Governmental Activities
Insurance claims—The County provides life, health, and disability benefits to its employees and
their dependents through the Northern Arizona Public Employee Benefit Trust, currently
composed of five members. The Trust provides benefits through a self-funding agreement with
its participants and administers the program. The County is responsible for paying the premium
and requires its employees to contribute a portion of that premium. If it withdraws from the
Trust, the County is responsible for any claims run-out costs, including claims reported but not
settled, claims incurred but not reported, and administrative costs. If the Trust were to terminate,
the County would be responsible for its proportional share of any Trust deficit.
Coconino County
Notes to Financial Statements
June 30, 2009
55
Compensated absences and claims and judgments—Compensated absences are paid from
various funds in the same proportion that those funds pay payroll costs. Claims and judgments
are generally paid from the fund that accounts for the activity that gave rise to the claim. During
fiscal year 2009, the County paid for compensated absences as follows: 51.66 percent from the
General Fund, 21.37 percent from major funds, and 26.97 percent from other funds. The County
paid for claims and judgments from the General Fund.
Note 6 – Risk Management
The County is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; injuries to employees and others; and natural disasters. These
risks of loss are accounted for and financed by the following described insurance coverage and
internal risk management program.
The County contracts with the State Compensation Fund of Arizona to provide workers
compensation coverage for employees. There is no deductible associated with this coverage and
the maximum coverage is $500,000 per occurrence. Claims over this amount are covered by the
County’s liability insurance policy up to $30 million. Settled claims did not exceed this
commercial insurance coverage in any of the past 3 fiscal years.
The County self-insures on commercial general liability for the first $125,000 per occurrence. A
self-insurance retention fund is set up for these losses. The County then purchases coverage
from insurers up to $30 million. For real property and business personal property damage
coverage the County has a $25,000 deductible with blanket coverage up to the property values.
Crime coverage is also a $25,000 deductible with limits of $1,000,000. Settled claims for
commercial general liability and crime coverage have not exceeded either the self-insurance
retention or the $25,000 deductible in the past 3 fiscal years. Three claims for property losses
have exceeded the $25,000 in the past 3 fiscal years.
2009 2008
Claims payable, beginning of year $276,484 $263,020
Current-year claims and changes in
estimates 53,494 66,924
Claim payments (43,586) (53,460)
Claims payable, end of year $286,392 $276,484
Coconino County
Notes to Financial Statements
June 30, 2009
56
Note 7 – Pensions and Other Postemployment Benefits
Plan Descriptions—The County contributes to four plans, two of which are described below.
The other two, the Elected Officials Retirement Plan and the Corrections Officer Retirement
Plan, are not described due to their relative insignificance to the County’s financial statements.
Benefits are established by state statute and generally provide retirement, long-term disability,
and health insurance premium benefits, including death and survivor benefits. The retirement
benefits are generally paid at a percentage, based on years of service, of the retirees’ average
compensation. Long-term disability benefits vary by circumstance, but generally pay a
percentage of the employee’s monthly compensation. Health insurance premium benefits are
generally paid as a fixed dollar amount per month towards the retirees’ healthcare insurance
premiums, in amounts based on whether the benefit is for the retiree or for the retiree and his or
her dependents.
The Arizona State Retirement System (ASRS) administers a cost-sharing, multiple-employer
defined benefit pension plan; a cost-sharing, multiple-employer defined benefit health insurance
premium plan; and a cost-sharing, multiple-employer defined benefit long-term disability plan
that covers employees of the State of Arizona and employees of participating political
subdivisions and school districts. The ASRS is governed by the Arizona State Retirement System
Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2.
The Public Safety Personnel Retirement System (PSPRS) administers an agent multiple-employer
defined benefit pension plan and an agent multiple-employer defined benefit health
insurance premium plan that covers public safety personnel who are regularly assigned
hazardous duty as employees of the State of Arizona or participating political subdivisions. The
PSPRS, acting as a common investment and administrative agent, is governed by a five-member
board, known as The Fund Manager, and the participating local boards according to the
provisions of A.R.S. Title 38, Chapter 5, Article 4.
Coconino County
Notes to Financial Statements
June 30, 2009
57
Each plan issues a publicly available financial report that includes its financial statements and
required supplementary information. A report may be obtained by writing or calling the
applicable plan.
ASRS PSPRS
3300 N. Central Ave. 3010 E. Camelback Road, Suite 200
P.O. Box 33910 Phoenix, AZ 85016-4416
Phoenix, AZ 85067-3910 (602) 255-5575
(602) 240-2000 or (800) 621-3778
Funding Policy—The Arizona State Legislature establishes and may amend active plan
members’ and the County’s contribution rates for the ASRS and PSPRS.
Cost-sharing plans—For the year ended June 30, 2009, active ASRS members were required by
statute to contribute at the actuarially determined rate of 9.45 percent (8.95 percent for retirement
and 0.5 percent for long-term disability) of the members’ annual covered payroll and the County
as required by statute to contribute at the actuarially determined rate of 9.45 percent (7.99
percent retirement, 0.96 percent for health insurance premium, and 0.5 percent long-term
disability) of the members’ annual covered payroll.
The County’s contributions for the current and 2 preceding years, all of which were equal to the
required contributions, were as follows:
Year ended Retirement Health Benefit Long-Term
June 30, Fund Supplement Fund Disability Fund
2009 $ 2,974,352 $357,369 $186,131
2008 2,928,708 382,005 181,908
2007 2,663,764 370,457 176,408
Agent plan—For the year ended June 30, 2009, active PSPRS members were required by statute
to contribute 7.65 percent of the members’ annual covered payroll, and the County was required
to contribute 28.63 percent, the aggregate of which is the actuarially required amount. The
health insurance premium portion of the contribution rate was actuarially set at 0.74 percent of
covered payroll.
Coconino County
Notes to Financial Statements
June 30, 2009
58
Actuarial methods and assumptions—The contribution requirements for the year ended June 30,
2009, were established by the June 30, 2007 actuarial valuations, and those actuarial valuations
were based on the following actuarial methods and assumptions.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of events in the future. Amounts determined regarding the funded status of the
plan and the annual required contributions are subject to continual revision as actual results are
compared to past expectations and new estimates are made. The required schedule of funding
progress presented as required supplementary information provides multiyear trend information
that shows whether the actuarial value of the plan’s assets are increasing or decreasing over time
relative to the actuarial accrued liability for benefits.
Projections of benefits are based on 1) the plan as understood by the County and plan’s members
and include the types of benefits in force at the valuation date, and 2) the pattern of sharing
benefit costs between the County and plan’s members to that point. Actuarial calculations reflect
a long-term perspective and employ methods and assumptions that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial
methods and assumptions used to establish the fiscal year 2009 contribution requirements are as
follows:
Actuarial valuation date June 30, 2007
Actuarial cost method Projected unit credit
Amortization method Level percent closed for unfunded actuarial accrued liability,
open for excess
Remaining amortization period 29 years for unfunded actuarial accrued liability, 20 years for
excess
Asset valuation method Smoothed market value
Actuarial assumptions:
Investment rate of return 8.50%
Projected salary increases 5.50% - 8.50%
includes inflation at 5.00%
Coconino County
Notes to Financial Statements
June 30, 2009
59
Annual Pension/OPEB Cost—The County’s pension cost for the agent plan for the year ended
June 30, 2009, and OPEB related information follows. This is an estimate based on what was
actually paid.
PSPRS
PSPRS Health
Pension Insurance
Annual pension/OPEB cost $ 910,054 $ 36,441
Contributions made $ 910,054 $ 36,441
Trend Information—Annual pension and OPEB cost information for the current and 2
preceding years follows for the PSPRS. Annual cost information for the current and preceding
years is as follows. Information about the prior year will be added next year.
Year Ended
June 30, Cost (APC) Contributed Obligation
Pension
2009 $ 9 10,054 100% $0
2008 764,755 100% 0
Health
Insurance
2009 36,441 100% 0
2008 25,169 100% 0
Pension and
Health
Insurance
2007 703,332 100% 0
Coconino County
Notes to Financial Statements
June 30, 2009
60
Funded Status— The funded status of the agent plan as of the most recent valuation date, June
30, 2009, along with the actuarial assumptions and methods used in that valuation follows.
Pension
Health
Insurance
Actuarial accrued $ 26,050,300 $ 769,572
liability (a)
Actuarial value of
assets (b) 13,206,756
Unfunded actuarial
accrued liabilty
(funding excess)
(a) - (b) 12,843,544 769,572
Funded ratio (b)/(a) 50.70% 0.0%
Cover payroll (c) 3,216,304 3,216,304
Unfunded actuarial
accrued liability
(funding excess) as
a percentage of
covered payroll
([(a) - (b)]/(c)) 399.3% 23.9%
The actuarial methods and assumptions used for the most recent valuation date are as follows:
Actuarial valuation date June 30, 2009
Actuarial cost method Projected unit credit
Amortization method Level percent for closed unfunded actuarial accrued
liability, open for excess
Remaining amortization period 27 years for unfunded actuarial accrued liability,
20 years for excess
Asset valuation Smoothed market value
Actuarial assumptions:
Investment rate of return 8.5%
Projected salary increases 5.5% - 8.5%
includes inflation at 5.5%
Coconino County
Notes to Financial Statements
June 30, 2009
61
Postemployment Healthcare Plan
Plan Description—Employees retiring from Coconino County service, who receive monthly
income from any of the Arizona State individual retirement plans, are eligible to continue
insurance coverage at group rates through the Northern Arizona Public Employees Benefit Trust
(NAPEBT). Coconino County is a member of (NAPEBT) and the benefits and premium rates
are approved by the Trust and the Board of Supervisors on an annual basis for active and retired
members. Although Coconino County does not explicitly pay a portion of the retiree’s
premiums, because of the inclusion of this class in the insured pool, there is an implicit subsidy
or “premium rate differential” that is incurred by the County.
Funding Policy
The program is currently funded on a pay-as-you-go basis.
Actuarial valuation date July 1, 2009
Actuarial accrued
liability (a) $ 7,887,569
Actuarial value of
assets (b)
Unfunded actuarial
accrued liabilty
(funding excess) (a) - (b) 7,887,569
Funded ratio (b)/(a) 0.00%
Covered payroll (c) 51,641,941
Unfunded actuarial
accrued liability
(funding excess) as
a percentage of
covered payroll
([(a) - (b)]/(c)) 15.27%
Annual pension cost and net pension obligations Governmental
Activities
Annual required contribution $ 1,386,909
Contributions made (86,187)
Increase in net pension obligation 1,300,722
Net pension obligation at beginning of year
Net pension obligation at end of year $ 1,300,722
Coconino County
Notes to Financial Statements
June 30, 2009
62
Methods/Assumptions
Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of events far into the future. Actuarially determined amounts are subject to
continual revision as actual results are compared to past expectations and new estimates are
made about the future. The required schedule of the funding progress presented as required
supplementary information provides multiyear trend information that shows whether the
actuarial value of the plan’s assets are increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
Projections of benefits are based on 1) the plan as understood by the County and plan’s members
and include the types of benefits in force at the valuation date, and 2) the pattern of sharing
benefit costs between the County and plan’s members to that point. Actuarial calculations reflect
a long-term perspective and employ methods and assumptions that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial
methods and assumptions used for the most first and most recent valuation date are as follows:
Valuation Date July 1, 2009
Actuarial cost method Entry Age Normal, Level Dollar
Amortization method 30-Year Amortization Open
Remaining amortization period 30
Asset valuation method No assets in OPEB trust
Investment rate of return 4.50%
Inflation rate N/A
Medical cost trend rate 9.00% graded down to ultimate rate of 5.0% over 8 years
Medicare coverage age 65
Retirement and disability age
Based on the assumptions for the ASRS actuarial
valuation as of June 30, 2008
Active members 63
Retireees, beneficiaries, and dependents 1,053
Coconino County
Notes to Financial Statements
June 30, 2009
63
Note 8 – Interfund Balances and Activity
Interfund receivables and payables—Interfund balances at June 30, 2009, were as follows:
Ge ne ra l
Fund
Public
Wo rks /HURF
Fund
Ja il
Dis tric t
Fund
P a rks & Ope n
S pa c e s Ta x
Fund
No nma jo r
Go ve rnme nta l
Funds
In te rn a l
S e rvic e
Fund To ta l
P a ya ble from
Ge ne ra l Fund $ 2 7,994 $ 1 09,177 $ 4 ,533,113 $ 1 06,799 $ 4,777,083
P ublic Works /HURF Fund $ 1 58,343 117,240 140,969 416,552
Ja il Distric t Fund 294,291 16,710 1,272 4,794 317,067
Pa rks & Open Spa c e s Tax Fund 360,197 1,124,675 1,484,872
Nonma jor Gove rnme nta l Funds 7,304,307 504,937 26,607 $ 105,161 1,116,481 36,977 9,094,470
Inte rna l S e rvic e Fund 2,368 1,652 276 4,296
Tota l $ 8,117,138 $ 5 52,009 $ 1 37,436 $ 105,161 $ 6 ,893,057 $ 2 89,539 $ 16,094,340
P a ya ble to
The interfund balances resulted from time lags between the dates that (1) interfund goods and
services are provided or reimbursable expenditures occur, (2) transactions are recorded in the
accounting system, and (3) payments between funds are made.
Interfund transfers—Interfund transfers for the year ended June 30, 2009, were as
follows:
General
Fund
Public
Works/HURF
Fund
Jail
District
Fund
Nonmajor
Governmental
Funds
Internal
Service
Fund Total
Transfer from
General Fund $ 45,685 $ 2,308,556 $ 4,662,382 $ 7,016,623
Public Works/HURF Fund $ 1,012,463 107,121 $ 27,079 1,146,663
Parks & Open Spaces Tax Fund 360,197 1,019,514 1,379,711
Nonmajor Governmental Funds 1,770,685 3,322,857 872,216 5,965,758
Total $ 3,143,345 $ 3,368,542 $ 2,308,556 $ 6,661,233 $ 27,079 $ 15,508,755
Transfer to
Interfund transfers are used to move revenues from the fund that collects them to the fund that
expends them.
Coconino County
Notes to Financial Statements
June 30, 2009
64
Advances from/to other funds
Advances from/to other funds represent monies owed from various County Road Improvement
Districts (nonmajor governmental funds) to the Forest Fee Revolving Fund (nonmajor
governmental fund) to assist citizens with road improvements. The amount of advances as of
June 30, 2009 was $456,394. The County Road Improvement Districts are paying interest on the
advances. The interest rates range from 2.510% to 4.0299%.
Advances From the
Forest Fees
Advances To Revolving Fund
Buckboard Trail $ 39,912
Hashknife 35,000
Kiowa Commanche 87,742
Lupine 88,004
Oakwood Pines 37,100
Pawnee 69,089
Pinon Improvement 51,112
Shoshone 20,076
Tonowanda 28,359
Total $ 456,394
Coconino County
Notes to Financial Statements
June 30, 2009
65
Note 9 – 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 her 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 annually 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 pool’s structure 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.
The Treasurer allocates interest earnings to each of the pool’s participants.
Substantially all deposits and investments of the County’s primary government are included in
the County Treasurer’s investment pool, except for $2,882,591 of deposits, $2,778,205 of
investments in Mutual Funds-debt, $18,336,932 in the State Treasurer’s Investment Pool, and
$16,167 of investments in equities; therefore, the deposit and investment risks of the Treasurer’s
investment pool are substantially the same as the County’s deposit and investment risks. See
Note 2 for the disclosure of the County’s deposit and investment risks.
Details of each major investment classification follow.
Interest
Investment Type Principal Rates Maturities Amount
State Treasurer's
investment pools $ 1,026,205 None stated None stated $ 1,026,205
U.S. agency securities 92,683,740 1.150-5.550% 6/30/2009-5/28/2013 92,469,088
Municipal bonds 1,031,130 3.600-5.970% 6/01/2010-6/01/2014 1,032,626
Corporate securities 26,035,109 2.750-7.875% 8/01/2009-6/01/2014 26,052,813
Coconino County
Notes to Financial Statements
June 30, 2009
66
A condensed statement of the investment pool’s net assets and changes in net assets follows.
Statement of Net Assets
Assets $ 155,582,782
Net assets $ 155,582,782
Net assets held in trust for:
Internal participants $ 71,398,113
External participants 84,184,669
Total net assets held in trust $ 155,582,782
Statement of Changes in Net Assets
Total additions $ 470,108,687
Total deletions 468,894,218
Net increase 1,214,469
Net assets held in trust
July 1, 2008 154,368,313
June 30, 2009 $ 155,582,782
Note 10 – Maintenance of Effort Payments
In accordance with Arizona Revised Statute Section 48-4024, Coconino County is required to
make annual maintenance of effort payments (MOE) to the Coconino County Jail District, a
special revenue fund type. The payments will be made through fiscal year 2027, and are
determined by first establishing a base expenditure which was used as the initial fiscal year 1998