A look at the Mariposa County Financial Audit for 2010
A link to the Audio file of the March 8, 2011 Mariposa County Board of Supervisors meeting where the audit was discussed.
The 2010Audit
The Audit covers Mariposa County fiscal year which ends at the end of June.
From page 15:
FINANCIAL HIGHLIGHTS
The net assets of the County at the close of the fiscal year were $59,997.746. Of this amount, $3,040,926 represents unrestricted net assets that may be used to meet ongoing obligations of citizens and creditors. $10,926,201 is restricted for specific purposes and $46,030,619 is invested in capital assets, net of related debt.
The County’s total net assets decreased by $1,047,721.
This decrease is mostly attributable to Business-Type Activities. Expenditures exceeded program revenues by $1,004,300 during the fiscal year for all business-type activities. (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. Increases and decreases in net assets may serve as a useful indicator of whether or not the financial position of the County is improving or deteriorating. The statement of net assets also provides information on unrestricted and restricted net assets and net assets invested in capital assets, net of related debt.)
As of June 30, 2010 the County’s governmental funds reported combined ending fund balances of $17,663,940, a decrease of $433,804.
The total undesignated fund balances of all governmental funds are $11,632,980. The fund balance of the County general fund at June 30th was $6,737,738. Of this amount, $2,180,321 is undesignated and available as a financial resource for next year’s budget.
The County’s total long-term liabilities for Governmental and Business-type activities are $25,543,863, an increase of $1,533,432 in comparison with the prior year.
This resulted from an increase in recognized OPEB obligations of $2,087,432 which more than offset a decrease of $642,752 due to continuing payments on loans, leases, bonds, and certificates of participation. Recognition of OPEB obligations will continue to add $2,000,000 or more each year to the County’s long term liabilities. Amounts due within one year for both Governmental and Business-Type activities are $1,486,580.
From page 20:
There are some notable trends in the government-wide financials for the period of 2007 to 2010.
The notable items over that three year period on the General Revenue side are:
The Transient Occupancy Tax increased $1,153,590 (12.5%) despite a dip in 2009.
Property Taxes increased $911,936 (13.4%) with an increase each year
Interest and Investment Earnings decreased $569,667 (54.6%) as interest rates have declined
The notable items over that same three year period on the Governmental Activities side are:
General Government expense increased $2,102,493 (29.9%)
Public Protection expense increased $4,108,969 (29.5%)
Health and Welfare expense increased $1,595,794 (36.6%)
Public Assistance expense increased $3,531,467 (37.6%)
Public Ways and Facilities expense increased $317,523 (4.5%)
Interest on Long Term Debt increased $350,862 (138.9%)
Number of full-time County employees increased 32 (8.7%)
Page 17:
On the following table compare 2010 to 2009 on:
Sales and use taxes, property transfer taxes, tobacco settlement funds, interest and investment earnings and misc. All these were down compared to 2009.
On the expenses 2010 compared to 2009 every line is up except Public Ways and facilities.
Public assistance was up $1,500,000. General Govt. up $700,000.
Page 18:
Certificates of Participation: Composting Facility (Solid Waste) Still owe: $ 2,986,000 original loan was for40 years, still owe for 33 more years. Interest Rate is 4.25%. (page 64)
Page 67: The Landfill:
F. Closure/Post Closure
The County of Mariposa has one landfill site. State and Federal laws and regulations require the County to place a final cover on its landfill site when it stops accepting waste and to perform certain closure and post closure maintenance and monitoring functions at the landfill site for thirty years after closure. Although closure and post closure care costs will be paid only near or after the date that the landfill stops accepting waste, the County reports a portion of these closure and post closure costs as an expenditure in each year based on landfill capacity used as of each balance sheet date. The $2,487,364 reported as closure/post closure liability at June 30, 2010, represents the cumulative amount reported to date based on the use of 61.93 percent of total estimated site capacity.
The County will recognize the remaining estimated cost of closure and post closure care of $1,528,838, as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and post closure care in 2010. Actual costs may be higher due to inflation, change in technology or changes in regulations. The County is required by State and Federal laws and regulations to make annual contributions to an account to finance closure and post closure care. At June 30, 2010, cash and investments of $848,910 was held for funding purposes resulting in a deficit of $1,638,454 in the Solid Waste Closure fund. The County expects that future inflation costs will be paid from interest earnings on annual contributions to the closure reserve. However, if interest earnings are inadequate or additional post closure care requirements are determined, (due to changes in technology or applicable laws or regulations,
Page 72:
At June 30, 2010, there was a deficit in net assets of the risk management funds of $1,197,232. This deficit was the result of unfunded Workers’ Compensation of $1,197,869 and liability of $26,053 and insurance net assets of $26,690.
page 75
Pensions:
For 2007 the Unfunded Liability was at $10,053,056 and has steadily increased by millions of dollars over the years. As of October 2010 the Unfunded Liability is at $17,500,000.
The county taxpayers pay CalPERS 7.75% interest on this money. Currently the payment is over $1,300,000 a year.
Pensions1. SCHEDULE OF FUNDING PROGRESS - PENSION
Miscellaneous Plan: The table below shows a three-year analysis of the most recent actuarial value of assets as a percentage of the actuarial accrued liability and the unfunded actuarial accrued liability as a percentage of the annual covered payroll for the County Miscellaneous Plan.
Safety Plan:
The County specific funding information is no longer available for the Safety Plan. The County’s Safety Plan participates in a risk sharing pool with other safety plans. Participation was required as of June 30, 2003 (when CalPERS set up risk sharing pools) since the plan had less than 100 active members at that time. Funding information is available on a pooled-basis only and can be obtained upon request to the County or directly from CalPERS, P.O. Box 942709, Sacramento, CA 94229-2709.
The following is GASB 25:
The health benefits to the retirees: as of July 2008 the Unfunded Liability was at $24,640,613.
The county could prefund this but prefers to pay this year by year.
Eventually this will cost the taxpayers of Mariposa County millions of dollars a year.
2. SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS (OPEB)
The table below shows a one year analysis of the actuarial value of assets as a percentage of the actuarial accrued liability and the unfunded actuarial accrued liability as a percentage of the annual covered payroll as of July 1, 2009, for the County Other Post-Employment Benefit Plan. As additional years are available, a three year trend analysis will be presented.
