Douglas County, Colorado

Transcription

1 For the Year Ended December 31, 2011

2 Douglas County, Colorado BOARD OF COUNTY COMMISSIONERS Jack Hilbert, District 1 Steven A. Boand, District 2 Jill Repella, District 3 COUNTY MANAGER Douglas J. DeBord DIRECTOR OF FINANCE N. Andrew Copland Accountants Judi Dinkel Accounting Supervisor Michelle Thompson Accounting Supervisor Christy McKinzie Accountant 100 Third Street, Castle Rock, Colorado (303)

3 Comprehensive Annual Financial Report For The Year Ended December 31, 2011 Prepared by the Finance Department Member of Government Finance Officers Association of The United States and Canada

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5 Comprehensive Annual Financial Report December 31, 2011 Table of Contents Introductory Section Letter of Transmittal 1 County Officials and Statutory Boards and Commissions 5 Douglas County Government Organization 6 Certificate of Achievement for Excellence in Financial Reporting 7 Financial Section Independent Auditors Report 8 Management s Discussion and Analysis 10 Basic Financial Statements: Government-wide Financial Statements: 24 Statement of Net Assets 25 Statement of Activities 26 Governmental Fund Financial Statements: Balance Sheet 27 Reconciliation of the Governmental Funds Balance Sheet to the Governmental Activities on the Statement of Net Assets 29 Statement of Revenues, Expenditures, and Changes in Fund Balance 31 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 Proprietary Fund Financial Statements: Statement of Net Assets 34 Statement of Revenues, Expenses, and Changes in Fund Net Assets 35 Statement of Cash Flows 36 Fiduciary Fund Financial Statements: Statement of Fiduciary Assets and Liabilities 37 Notes to Basic Financial Statements 38 Page i

6 Comprehensive Annual Financial Report December 31, 2011 Table of Contents Required Supplementary Information Other than MD&A: 64 Schedules of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget: Major Funds: General Fund 65 Road and Bridge Fund 69 Human Services Fund 71 Law Enforcement Authority Fund 72 Road Sales and Use Tax Fund 73 Justice Center Sales and Use Tax Fund 74 Page Notes to Required Supplementary Information 75 Supplemental Information: 76 Nonmajor Governmental Funds: Combining Balance Sheet 79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 83 Schedules of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget: Nonmajor Funds: Developmental Disabilities Fund 87 Open Space Trails and Parks Fund 88 Park Sales and Use Tax Fund 89 Conservation Trust Fund 90 Lincoln Station Sales Tax Improvement Fund 91 Solid Waste Disposal Fund 92 Woodmoor Mountain G.I.D. 93 Debt Service Fund 94 Capital Expenditures Fund 95 LID Capital Construction Fund 96 Growth Construction Law Enforcement Fund 97 Capital Replacement Fund 98 Internal Service Funds: Combining Statement of Net Assets 101 Combining Statement of Revenues, Expenses, and Changes in Net Assets 102 Combining Statement of Cash Flows 103 ii

7 Comprehensive Annual Financial Report December 31, 2011 Table of Contents Schedules of Revenues, Expenditures, and Changes in Net Assets Actual and Budget: Internal Service Funds: Employee Benefits Fund 104 Property and Liability Fund 105 Fiduciary Funds: Combining Statement of Fiduciary Assets and Liabilities 107 Combining Statement of Changes in Assets and Liabilities 108 State Required Schedule: Local Highway Finance Report 111 Page Statistical Section Net Assets by Component 117 Changes in Net Assets 118 Fund Balances, Governmental Funds 120 Changes in Fund Balances, Governmental Funds 121 Tax Revenues by Source, Governmental Funds 123 Assessed Value and Estimated Market Value of Taxable Property 124 Direct and Overlapping Property Tax Rates 125 Principal Property Tax Payers 126 Property Tax Levies and Collections 127 Ratios of Outstanding Debt by Type 128 Legal Debt Margin Information 129 Revenue Bond Coverage 130 Special Assessment Debt with no Government Commitment 131 Demographic and Economic Statistics 132 Principal Employers 133 Budgeted Full-Time Equivalent County Employees by Function / Program 134 Operating Indicators by Function / Program 135 Capital Asset Statistics by Function / Program 136 iii

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10 Finance Department April 30, 2012 To the Board of County Commissioners and the Citizens of Douglas County: The Comprehensive Annual Financial Report of Douglas County, Colorado for the fiscal year ended December 31, 2011 is hereby submitted. This report consists of management s representations concerning the finances of Douglas County (hereafter referred to as the County). Consequently, management assumes full responsibility for both the accuracy of the presented data, and for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the County has established internal controls that are 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 in the United States of America (US GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). Since the cost of internal controls should not outweigh their benefits, the County s internal controls have been designed to provide reasonable assurance the financial statements will be free from material misstatement. To the best of our knowledge and belief, this financial report is accurate in all material aspects and reported in a manner which fairly represents the financial position and results of operations of the County as measured by the financial activity of its various funds. Further, we believe all disclosures that are necessary to enable the reader to gain the maximum understanding of the County s financial activities have been included. Colorado Revised Statutes (CRS) requires local governments to have an annual audit of their financial statements, performed in accordance with generally accepted auditing standards, by a firm of licensed certified public accountants. CRS requires the financial statements be presented in conformity with US GAAP. The County s financial statements have been audited by Eide Bailly, LLP. The goal of the independent audit is to provide reasonable assurance that the financial statements of the County, for the fiscal year ended December 31, 2011, are free of material misstatement. The independent audit involves examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used as well as the significant estimates made by management, and evaluating the overall financial statement presentation. The independent auditor, based upon their audit, rendered an unqualified opinion, concluding that these financial statements are fairly presented in conformity with US GAAP. The independent auditor s report is presented in the financial section of this report. In addition to meeting the requirements set forth in state statutes, the audit included a federally mandated Single Audit designed to meet the needs of federal grantor agencies (Single Audit Act Amendments of 1996 and related Office of Management and Budget (OMB) Circular A-133). The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the government s internal controls and compliance with legal requirements involved in 1

11 the administration of federal awards. The reports issued by the independent auditors are presented in a separately issued Single Audit Report. GASB requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of 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 can be found immediately following the report of the independent auditors. Profile of Douglas County Douglas County was formed in 1861 as one of the sixteen original Colorado counties. The County covers 844 square miles in the I-25 corridor between Denver and Colorado Springs. A majority of residents live in urban designated areas, such as unincorporated Highlands Ranch, the city of Lone Tree, the city of Castle Pines, and the towns of Castle Rock (county seat), Parker and Larkspur. The County has a population of about 291,083; this represents an increase of approximately 0.9% over the corrected 2010 census count of 288,430. Over the past 10 years Douglas County population increased 62.4%, making Douglas County the fastest growing county in Colorado and the 16 th fastest growing county in the nation. The 65 and over population increased 177.8% during the same time and they now make up 7.1% of the total population, however, by 2030, seniors are expected to be 20% of the total County population. The County provides a wide range of services that include law enforcement and public safety, planning and zoning, parks and open space, highways and streets, culture and recreation, public health and human services, elections, and general administrative services. The three-member Board of County Commissioners (BOCC) serves as the legislative, policy-making and administrative body governing the unincorporated area of the County. The commissioners are elected at large from one of three geographical districts and serve staggered four-year terms (term-limited to two terms). Budget authorization is one of the few oversight roles the Board can legally exercise with the other elected officials, who derive their responsibilities and authorities from statute. Those six elected offices include Assessor, Clerk and Recorder, Coroner, Sheriff, Surveyor and Treasurer. The County is one of four counties in the Eighteenth Judicial District served by the District Attorney, an elected official responsible for prosecuting all criminal case filings. The Public Trustee is appointed by the Governor and is responsible for processing transactions related to real property located within the County including the release of deeds and the processing of foreclosures. This office is a fiscally separate and independent agency. The Board is directly supported by the County Manager and County Attorney. Appointed officials manage the remainder of the County s functions, including Finance, Human Resources, Human Services, Information Technology, Community Planning and Sustainable Development, Facilities Management and Public Works. The Board is charged with the responsibility of providing adequate budget appropriations to fund statutory functions, as well as responding to the service needs of the citizens. In turn, the other elected and appointed officials are charged with managing their authorized budgets in order to meet their statutory obligations and service demands as cost-effectively as possible. The Board is required to adopt a final budget by no later than the end of the fiscal year. The adopted budget becomes the County s annual financial plan and mechanism to control spending. The Board is also financially accountable for three component units, the Douglas County Law Enforcement Authority, the Douglas County Woodmoor Mountain General Improvement District and the Lincoln Station Local Improvement District. The Sheriff s Forfeiture Fund is subject to audit, but not to budget law, and is also included in the financial statements of the County. 2

12 Factors Affecting the Financial Condition of Douglas County Douglas County saw an increase of 0.9% in population and a decrease of 0.6% in the unemployment rate during Municipalities located within the boundaries of the County, the Town of Castle Rock (17%), the Town of Parker (16%), the City of Lone Tree (4%), and the City of Castle Pines (3%) contain approximately 116,400 or 40% of the County s population. Unincorporated Douglas County contains the remaining 60%, or 174,683 citizens. Of the citizens in unincorporated areas of the county approximately 98,700 (34%) live in the urban area of Highlands Ranch. This leaves an estimated 75,983 citizens (26%) living in unincorporated separated urban or rural areas of the County. Douglas County has seen a dramatic decline in annual housing production. During the past decade ( ) the average level of production has been 4,148 units per year, this equates to an average annual growth rate of 8.9%. In 2011 Douglas County gained a total of only 985 new housing units which equates to a growth rate of only 0.9%. There is positive evidence that housing production is on the rise again in Douglas County; the 1,317 unit count for new permits issued in 2011 represents a 38% increase over Multi family units account for 18% of the total residential permits issued in In addition six skilled nursing facilities or senior living facilities were started in 2011 in response to the increasing senior population of the County. The average annual labor force in Douglas County was estimated at 159,844 people in 2011 by the Colorado Department of Labor and Employment, an increase of 0.5% when compared to The average annual unemployment rate in Douglas County for 2011 was 6.0%, which while still historically high for Douglas County was still lower than the state or national averages of 7.9% and 8.5% respectively. The 9,566 unemployed citizens in Douglas County is 1,729 individuals less than 2010 which represents a 15.3% decrease in the number of people unemployed in % of the workforce residing in the County commutes to a job outside of the County. The workforce in Douglas County is ranked #7 in the Nation for educational attainment. In 2010 a total of 58.4% of all people in Douglas County, age 18 years and over, held some level of college degree. In 2004, Douglas County officially became an entitlement community as a part of the U.S. Department of Housing and Urban Development s (HUD) Community Development Block Grant (CDBG) Program. The CDBG Program provides funding to Douglas County that is used to assist low and moderate-income persons in the areas of housing, economic opportunity, and services, such as transportation. The County CDBG program year runs annually from August 1 to July 31. The County s 2011 program year allocation was $757,953. Ad valorem, or property taxes, serve as the primary revenue source for the statutory and general government services. For 2011, the County collected just over $109 million in property taxes which was a 0.3% increase over the previous year. Sales and use taxes are the second major source of revenue, and are more prone to fluctuations in the economy. All sales and use taxes collected are statutorily set aside for specific costs associated with 1) road improvements, 2) the operation of and improvements to the Robert A. Christensen Justice Center and 3) the acquisition, development and maintenance of open space, trails and regional parks. In 2011 the County collected $42 million in sales and use taxes, an increase of 7.5% over The County significantly completed construction on several projects, including a new substation for the Sheriffs office in Highlands Ranch and the extension of Hess Road to I-25. These projects are just a sampling of the many projects provided by the County to serve the citizens of Douglas County. The County continues its commitment to open space lands, regional parks and trails systems. The County currently protects 48,356 acres of open space land. Several open space properties provide public recreational use including Columbine, Glendale, Greenland, Sharptail Ridge, Spruce Mountain, and Hidden Mesa. The County will continue to expand public access and passive recreational trails on open space land where it is possible. 3

13 Douglas County water users primarily obtain their supply from the non-renewable ground waters of the Denver Basin aquifers. While the aquifers are believed to contain large quantities of water, their levels are depleting at much faster rates than once believed. It is no secret that additional renewable water supplies are necessary to help augment existing ground water resources, while ambitious water conservation efforts are needed by all County water users. The County will continue to partner with other entities within its boundaries to deal with issues related to water conservation, landscaping regulations, storm water management, and ensuring the future availability of adequate water resources. The Douglas County Scorecard made its debut in October 2011 and is the result of the focused efforts of all levels of County government over 2 years to produce a document that will be used to develop operational strategic objectives that align with the Board of County Commissioner goal policies. County level strategies were aligned with department level objectives in order to allow the departments to more accurately direct resources and activities toward the highest priority areas. This system is designed to help boost performance and efficiency while allowing Douglas County to meet today's priorities and tomorrow's challenges. In December 20 II the Douglas County Scorecard was selected as the winner of the 2012 Award for Excellence from the Balanced Scorecard Institute. A wards and Acknowledgements Awards - The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Douglas County for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31,2010. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. The report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements - The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the Finance Department. 1 would like to especially thank Michelle Thompson, Christy McKinzie and Linda Scheffel for their outstanding work in preparation for the audit and for their assistance with the preparation of this document. Their professionalism, dedication, and efficiency made this report possible. In addition, the finance department wishes to extend sincere appreciation to the County Treasurer and her staff for their contributions to the preparation of this report. In closing, we wish to acknowledge the interest, leadership and support of the Board of County Commissioners, the Douglas County Audit Committee and the cooperation of each of the County's divisions as we work together to conduct the County's financial operations. The Board continues to demonstrate prudent fiscal management and stewardship with regards to the actual and ongoing financial conditions of the County to provide basic sustainable foundations that result in a high quality of life for our citizens, taxpayers and communities. ;:Jbmitted, <&0 ~~ Douglas 1. DeBord N. Andrew Copland, CPA County Manager Director of Finance Accounting Supervisor 4

14 Douglas County Government Organization December 31, 2011 Elected Officials Commissioner, District 1 Commissioner, District 2 Commissioner, District 3 Assessor Clerk & Recorder Coroner Sheriff Surveyor Treasurer Appointed Official Public Trustee In Office Since Current Term Expires Jack Hilbert January 2007 January 2015 Steven A. Boand January 2005 January 2013 Jill Repella January 2009 January 2013 Teri Cox January 2007 January 2015 Jack Arrowsmith January 2007 January 2015 Lora Thomas January 2011 January 2015 David A. Weaver September 2005 January 2015 Delmer H. Hamilton January 2011 January 2015 Diane Holbert January 2011 January 2015 In Office Current Term Since Expires George Kennedy March 2011 February 2015 Appointed Department Officials Appointment County Attorney Lance Ingalls February 2003 County Manager Douglas J. DeBord October 1998 Finance N. Andrew Copland December 2006 CPSD - Engineering Frederick Koch March 2009 CPSD - Planning Terence Quinn March 2009 Public Works Operations Randall Teague January 2010 Facilities Management Victoria Starkey January 2010 Human Services Barbara Drake March 2009 Human Resources Laura Teague April 2010 Information Systems Paul Clanton May 2008 Statutory Boards and Commissions Audit Committee Board of Adjustment Board of Appeals # of Members CDBG Advisory Board 11 Cultural Council 9 Emergency Management Coordinating Group 5 Human Services Citizen Review Panel 5 Open Space Advisory Committee 9 Parks, Trails and Building Grounds Advisory Board 9 Placement Alternatives Commission 13 Planning Commission Weed Advisory Commission 9 7 5

15 2011 Douglas County Government Organization CITIZENS ASSESSOR Property Appraisal & Assessment Mapping CLERK & RECORDER Elections Recording Motor Vehicle CORONER Death Investigations Certificate of Death BOARD OF COUNTY COMMISSIONERS Policy Strategic Mgmt. Board of Equalization SHERIFF Law Enforcement Detention Emerg. Prep. SURVEYOR Boundary Disputes Survey/Plat Review TREASURER Tax Collection Investments Cash Mgmt. DISTRICT ATTORNEY Prosecution COUNTY ATTORNEY COUNTY MANAGER DEPUTY COUNTY MANAGER Legal Counsel Litigation Contracts Operations Management Internal COUN TY Community Justice Services Human Resources Human Services Community Planning & Sustainable Development Information Technology Employee & Organizational Development Open Space & Natural Resources Facilities Management Public Affairs Finance Public Works LEGEND ELECTED OFFICIALS APPOINTED DEPARTMENT OFFICIALS DIVISION/PROGRAM/RESPONSIBILITY 6

16 Certificate of Achievement for Excellence in Financial Reporting Presented to Douglas County Colorado For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2010 A Certificate ofachievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President Executive Director 7

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18 information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the infoi1nation because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose offonning opinions on the fmancial statements that collectively comprise the Douglas County's financial statements as a whole. The introductory section, combining and individualnonmajor fund fmancial statements, Local Highway Finance Report and statistical section are presented for purposes of additional analysis and are not a required part ofthe financial statements. The combining and individual nonmajor fund financial statementsand budgetary schedules and Local Highway Finance Report are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit ofthe financial statements and certain additional procedures, including comparing and reconciling such infonnation directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the infonnation is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Greenwood Village, Colorado April 30,

19 MANAGEMENT S DISCUSSION AND ANALYSIS 10

20 Management s Discussion and Analysis December 31, 2011 This section of the Douglas County Comprehensive Annual Financial Report is presented to provide readers with a narrative overview and analysis of the County s financial performance during the fiscal year that ended on December 31, We encourage readers to consider the information presented in this overview in conjunction with the information contained in the Introductory Section (including the Letter of Transmittal), the Financial Section (including the Basic Financial Statements) along with the accompanying notes to those financial statements and the Statistical Section, in order to enhance their understanding of the activities and financial health of Douglas County. Financial Highlights At the close of the most recent fiscal year, the County s government-wide assets exceeded liabilities by $733,301,292 (net assets). Of this amount, $207,677,975 (28%) may be used to meet the government s ongoing obligations to citizens and creditors. In total, County net assets increased by $10,392,229 in comparison to The increase is largely attributable to continued and sustained efforts to contain expenses in relation to anticipated revenues. As of the close of the current fiscal year, Douglas County s governmental funds reported combined ending fund balances of $221,196,432, an increase of $26,147,471 (13%) in comparison with the prior year. Total unassigned fund balance in the General Fund was $25,452,851 as of the end of the 2011 fiscal year, an increase of 33% over The unassigned portion of fund balance in General Fund represents 27% of the total 2011 General Fund expenditures. Overview of the Basic Financial Statements This discussion and analysis is intended to serve as an introduction to the County s Basic Financial Statements. These basic financial statements are made up of three components: 1) the government-wide financial statements, 2) the governmental fund financial statements (including blended component units), and 3) the notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements 1) Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County s finances as a whole, using accounting methods comparable to those used by private-sector companies. The two statements included in this grouping are: The Statement of Net Assets presents information related to all of the assets held and liabilities owed by the County, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial health of the County is improving or deteriorating. The Statement of Activities presents information demonstrating how the County s net position changed during the most recent fiscal year as compared with the previous fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, all of the current year s revenues and expenses are accounted for in this statement regardless of when cash is actually received or paid. These statements are presented to distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from those that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). For fiscal year ended December 31, 2011, the County had no business-type activities to report. The governmental activities of the County include the 11

21 Management s Discussion and Analysis December 31, 2011 statutory functions performed by the offices of the Assessor, Clerk & Recorder, Coroner, Sheriff, and Treasurer, as well as other functions related to highways and streets, culture and recreation, conservation of natural resources, community planning and sustainable development, human services, sanitation and general government administration. 2) Governmental Fund Financial Statements A fund is an accounting device that a government uses to maintain control over and account for specific sources of funding that are to be spent for specific purposes. Douglas County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with statutory requirements. These statements focus more on the individual functions of the County, reporting on financial operations in a more detailed format than is found in the government-wide statements. Certain funds are required by state law or established by bond covenants. Other funds are established by the Board of County Commissioners to control and manage resources for particular purposes (i.e., Debt Service, Capital Projects) or to show that certain revenue sources (i.e., taxes, grants) are used appropriately. Douglas County funds can be divided into the following three categories: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental funds focus on the near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Consequently, the governmental fund statements provide a detailed short-term view that helps determine whether there are more or fewer financial resources that can be spent in the near future to finance County programs. Because this information does not encompass the additional long-term focus found in the government-wide statements, additional information is provided that helps explain the relationship or differences between the two types of statements. Proprietary funds are used to account for services for which the County charges customers a fee. Douglas County maintains only one type of proprietary fund referred to as an internal service fund. Internal service funds are used to report activities that provide supplies and services for the County s other programs and activities. The County uses internal service funds to account for self-insurance programs related to employee benefits and risk management. Because the internal service funds serve only governmental activities, those funds have been included within governmental activities in the government-wide financial statements. 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 statement because the resources of those funds are not available to support the County s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. As of December 31, 2011 the County s fiduciary funds include the Treasurer s Fund, the Public Trustee s Fund, the Colorado Information Sharing Consortium Fund and certain Sheriff s Funds. The County maintains 6 major governmental funds and 13 non-major governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the major governmental funds. By definition the general fund is always considered a major fund. Other funds must be reported as major funds if they report at least 10 percent of all governmental funds total assets, liabilities, revenue or expenditures. Funds that do not meet the 10% criteria, but are considered to be of particular importance to the financial statements may also be reported as major funds. During 2011 the Human Services Fund s expenditures reached the 10% threshold thus requiring the fund to be considered a major fund. Conversely, the Open Space, Trails and Parks fund was no 12

22 Management s Discussion and Analysis December 31, 2011 longer required to be considered a major fund, so is now included in the non-major governmental funds. Data for the non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the non-major governmental funds is provided elsewhere in this report. The County adopts an annual budget, which is appropriated for all governmental and internal service funds with the exception of the Sheriff s Forfeiture Fund. The Sheriff s Forfeiture Fund is statutorily exempted from the budget process. A budgetary comparison schedule has been provided for the governmental and internal service funds subject to appropriation to demonstrate compliance with the budget. 3) Notes to the Basic Financial Statements The Notes to the Basic Financial Statements provide a more detailed explanation of some of the information contained in the financial statements that is essential to gain a better understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information including combining and individual fund statements as well as budgetary schedules comparing original budgets, final budgets, and actual expenditures for all funds subject to budgetary restrictions. Financial Analysis of Douglas County as a Whole As noted earlier, the change in total net assets over time can be one of the best and most useful indicators of a government s financial health. The following chart reports the total net assets for the County and the various components of net assets for fiscal years Net Assets Millions Restricted Assets Unrestricted Assets Capital Assets Net of Related Debt

23 Management s Discussion and Analysis December 31, 2011 The following table was derived from the current and prior years Statement of Net Assets: Governmental Activities (in thousands) Assets: Current and other assets $ 348,349 $ 329,074 Capital assets 559, ,701 Total assets 908, ,775 Liabilities: Current and other liabilities 123, ,358 Long-term liabilities 50,988 54,508 Total liabilities 174, ,866 Net assets: Invested in capital assets, net of related debt 513, ,991 Restricted 11,692 11,756 Unrestricted 207, ,162 Total net assets $ 733,301 $ 722,909 Douglas County s governmental assets exceeded liabilities by $733.3 million in 2011 and by $722.9 million in 2010 providing an overall increase in governmental net assets of $10.4 million (1.4%). Current and other assets increased by $19.3 million (5.8%), but this increase is offset by a decrease in the value of the County s Capital assets $18.9 million (-3.3%) due to asset additions of $12.3 million being offset by the depreciation of current assets of $31.1 million. There was also a decrease of $10.0 million (-5.4%) in the total liabilities of the County from 2010 to The largest portion of the County s net assets, $513.9 million (70%), reflects its investment in capital assets (e.g., land, buildings and improvements, equipment and infrastructure); less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the County s investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the County s net assets, $11.7 million (2%), represents resources that are subject to external restrictions on how they may be used. Included in this category are statutory reserves required by the State of Colorado and federal or state grant funds that may only be used for the specific purpose for which they were received. The remaining portion of the County s net assets consists of unrestricted assets of $207.7 million (28%) which may be used to meet the government s ongoing obligations to citizens and creditors. At the end of 2011, the County reported positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and internal service funds. The same situation held true for the prior fiscal year. 14

24 Management s Discussion and Analysis December 31, 2011 The following table was derived from the current and prior years Statement of Activities: Results of Operations Governmental activities (in thousands) Revenues: Program revenues: Charges for services $ 25,982 $ 25,549 Operating Grants and contributions 36,097 38,926 Capital Grants and contributions General revenues: Property taxes 109, ,851 Sales and use taxes 42,264 39,310 Other taxes 7,556 7,812 Earnings on investments 2,548 2,851 Other revenues 2,488 2,945 Total revenues 226, ,295 Expenses: Program expenses: General government 43,747 45,879 Judicial 7,405 7,880 Public safety 52,088 52,745 Highways and streets 72,265 59,509 Health and human services 24,548 23,567 Culture and recreation 7,997 5,739 Conservation of natural resources 528 2,269 Economic development and assistance Developmental disabilities 4,942 4,899 Community services Sanitation Interest and fiscal charges 1,805 2,661 Total expenses 216, ,019 Change in net assets 10,392 20,276 Net assets beginning 722, ,633 Net assets ending $ 733,301 $ 722,909 A key factor in determining a governments ability to fund operations is whether revenues exceed expenses for each fiscal year. In 2011 revenues exceeded expenses by $10.4 million, which while less than the 2010 excess of $20.3 million, the County was able to adequately fund continued operations while also increasing reserves to protect against the uncertainty of future economic conditions. 15

25 Management s Discussion and Analysis December 31, 2011 Total revenues reported in the Government-wide Statement of Activities for 2011 increased by only $0.3 million (0.0%) over Property tax revenues remained static, generating only $0.3 million more than the prior year. This amount represents the collection of property taxes based on appraisal values from June 2008 and includes new builds. These properties were assessed in 2009 and taxed in 2010 and Due to a slow, but sustained economic recovery in 2011, revenue from sales and use taxes in 2011 increased by $3.0 million (7.5%) over Revenues from intergovernmental grants and contributions decreased $2.4 million (-6.1%) from the previous year. There were contributions of $2.6 million from municipalities for assistance in road construction projects in 2010 and only $0.3 million was received in This category often fluctuates from year to year given the one-time nature of these revenue sources. Revenues from charges for services increased by $0.4 million (2%) from 2010 due mainly to a 38% increase in the total number of permits issued by the building department during 2011 when compared to 2010, which led to an increase in building permit revenue of $0.3 million. Millions Charges for Services Grants and contributions Property Taxes Sales and use taxes Other taxes Earnings on investments Other revenues 16

26 Management s Discussion and Analysis December 31, 2011 Total reported expenses for 2011 increased by $10.2 million (5.0%) from The line items that experienced notable changes were: General Government expenses for 2011 decreased by $2.1 million (-4.6%) when compared to This decrease is due to a reduction in the losses on the sale of fixed assets category in the amount of $2.8 million. In 2010 the County disposed of, or sold, assets valuing $2.9 million while in 2011 asset disposals were valued at $0.1 million. Highway and Streets experienced an increase in expenses of $12.8 million (21.4%) over The largest increase in expense was due to net additions to capital assets of $3.7 million compared to a net decrease of $0.1 million in 2010 which also led to an increase in depreciation of $0.6 million. An additional $1.9 million was spent on maintaining and repairing roads in Douglas County in A $2.9 million contribution to the state to assist in the completion of the new State Highway 85/C470 interchange and a contribution of $1.5 million to the City of Lone Tree to fund Multi-modal transportation improvements contributed to an overall increase of $5.0 million in project funding. Increased sales and use tax revenue in 2011 led to an increase of required municipal shareback expenses of $0.9 million. Finally, due to price increases for the products used to treat highways and streets in winter weather an additional $0.5 was spent in snow removal. Millions General Government Judicial Public safety Hea Highways and streets lth & human services Culture & recreation n of natural resources E conomic development Devel 17 Conservatio opmental disabilities Community services Sanitation Int erest & fiscal charges

27 Management s Discussion and Analysis December 31, 2011 Financial Analysis of the Government s Funds As noted earlier, Douglas County uses fund accounting to comply with finance-related legal requirements. Governmental Funds The focus of the County s governmental funds is to provide information on short-term inflows and outflows, as well as, what resources remain available for future spending. Such information is useful in assessing the County s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government s net resources available for spending at the end of the fiscal year. At the close of the 2011 fiscal year, the County reported a combined fund balance in its governmental funds (including blended component units) of $221,196,432, an increase of $26,147,471 or 13.4% over Of the combined fund balance, $25,452,851 (11.5%) constitutes unassigned fund balance, which is available for spending at the government s discretion and serves as a measure of current available financial resources. The remainder of fund balance is not available for discretionary spending because it has already been constrained as follows: $4,163,398 (2%) is nonspendable as these assets are in inventories or long term receivables; $11,692,557 (5.2%) is restricted for spending only on specific programs or projects funded by restricted revenues; $34,780,123 (15.7%) is committed to specific purposes according to limitations imposed by the Board of County Commissioners. Assigned fund balances of $145,107,503 (65.6%) are set aside for planned or intended actions, or limited in use by the specific revenue source through which the fund balance was obtained. The County s six major governmental funds are the: 1) General Fund, 2) Road and Bridge Fund, 3) Human Services Fund 4) Law Enforcement Authority (LEA) Fund, a blended component unit of the County, 5) Road Sales and Use Tax Fund, and 6) Justice Center Sales and Use Tax Fund. Human Road Justice Ctr General Road & Bridge Services LEA Sales & Use Sales & Use Fund Fund Fund Fund Tax Fund Tax Fund Fiscal Year 2011 (thousands) Revenues $ 96,594 37,992 22,349 18,010 17,523 18,433 Expenditures 93,569 29,864 21,960 15,116 18,376 2,864 Other financing sources/(uses) 10,016 (28) (8) 49 (2,147) (8,003) Inc/(dec) in fund balance $ 13,041 8, ,943 (3,000) 7,566 Fiscal Year 2010 (thousands) Revenues $ 96,365 37,575 21,614 18,283 18,383 17,160 Expenditures 92,303 29,555 20,955 14,913 22,075 11,934 Other financing sources/(uses) 11,262 (1,350) (8) 11 12,165 (10,556) I nc/(dec) in fund balance $ 15,324 6, ,381 8,473 (5,330) 18

28 Management s Discussion and Analysis December 31, 2011 General Fund As the County s chief operating fund, the General Fund accounts for all transactions not accounted for in other funds. The General Fund completed the year with a total fund balance of $64,659,587, a 25.2% increase over Of the total fund balance, $25,452,851 (39.3%) is unassigned. As a measure of the fund s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 27.2% of total General Fund expenditures, while total fund balance represents 69.1% of that same amount. General Fund revenues increased only $0.2 million over Property tax collections saw a minimal increase of $0.2 million (0%). Property values were again based on the 2008 appraisal values and due to the construction slow down there was limited change due to new construction. The number of building permits issued in 2011 did increase 38% over the number of permits issued in This increase created additional building permit revenues of $0.3 million (12%). Interest on investments continued to decline in 2011 due to record low interest rates causing revenues to decrease $0.2 million (13%) below 2010 revenue levels. There were no noteworthy changes to the General Funds operating expenditures during In the General Fund, total current operating expenses increased by $0.2 million, or less than 0.01%, when compared to Capital outlay increased $1.1 million (70%) over 2010 due mainly to the Counties purchase of the Emily Griffith Children s Center in Larkspur for $1.0 million. Thus, total expenditures did increase $1.2 million (1.3%). Fiscal management strategies initially instituted during 2009 and 2010 continued to keep 2011 expenses flat. The County has chosen to focus on using new technology, consolidation and improvement of internal processes to allow for the continued effective and efficient delivery of services to citizens while planning for future revenue shortages. These strategies allowed the County to post a positive budget to actual expenditures variance in the General Fund of $8.1 million. The remainder of the General Fund increased fund balance of $13.0 million resulted from inter-fund transfers. There were net transfers into the General Fund of $10.0 million. $8.7 million was transferred in from the Justice Center Sales and Use Tax Fund to reimburse the fund for the maintenance and upkeep expenses of the Robert Christensen Justice Center. An additional $1.2 million and $0.5 million were transferred in from the Road and Bridge Fund and Road Sales and Use Tax Fund respectively, to reimburse the General Fund for expenses related to engineering services on highway and street projects. Road and Bridge Fund The Road and Bridge Fund accounts for revenue received from property taxes and other revenue sources that under statute must be expended for road or bridge construction and maintenance, and traffic signal installation, maintenance and repair. For 2011, this fund reported a total ending fund balance of $38,478,571, an increase of $8,099,980 (26.6%) from Of this ending balance, $3,668,452 (9.5%) is nonspendable as it is in inventory and long term receivables. An additional $11,436,317 (29.7%) of fund balance is already committed to specific projects through re-appropriations in the 2012 budget. Of the remaining assigned fund balance of $23,354,047 (60.7%), $18,452,299 is reserved for subsequent year s expenditures, which represents the shortfall in budgeted fund revenues over budgeted expenses in Approximately 20% of the County s total property tax revenue generated from its mill levy is allocated to this fund. In accordance with state statute, of the $21.8 million in total property taxes allocated to this fund, $4.2 million was shared with the cities and towns located within the County. After taking into consideration the shareback allowance, property tax revenue in the Road and Bridge Fund increased $0.1 million (0.7%). Total revenues increased $0.4 million (1.1%) from the previous year. Intergovernmental support increased by $0.6 million (7.1%). This increase came from a $0.1 million (2.0%) increase in Highway User Tax received from the 19

29 Management s Discussion and Analysis December 31, 2011 state, and $0.3 million in additional support was recorded as part of the Department of Energy s Energy Efficiency and Conservation Block Grant which was awarded to the County in Total expenditures in the Road and Bridge Fund increased $0.3 million (1.0%) when compared to There were no significant changes in expenditures from 2010 to Many of the unfinished projects within the Road and Bridge Fund are put on hold pending the approval of federal, state or other outside funding sources. As such, the County continues to maintain or increase fund balance as possible in the Road and Bridge fund in order to be prepared to quickly act should intergovernmental funding become available for these projects. Human Services Fund As required by state law, this fund is used to account for all federal and state public aid and assistance programs administered by the County. Revenue sources include designated property taxes and intergovernmental agency support. Approximately 90% of the support provided to Douglas County residents through Human Services is funded by federal and state grants/reimbursements. The remaining 10% is funded through the dedicated property tax revenues. During 2011 this fund s expenses increased to a level that required the fund to be added to the major funds reported in Douglas County. At the end of 2011 the fund balance in the Human Services fund was $5,327,396. Fund balance increase by $381,593 (7.7%) over the 2010 ending fund balance of $4,945,803. Human Services revenue increased $0.7 million (3.4%) above 2010 revenues. Federal support of public assistance programs went up by $0.6 million in direct correlation to the increased need for public assistance. Expenses in the Human Services Fund increased above 2010 levels by $1.0 million (4.8%). Increases were seen in food assistance programs of $1.1 million and child welfare programs of $0.5 million. Child care and low income energy assistance programs each experienced decreased expenses of $0.2 million. Law Enforcement Authority (LEA) Fund The Law Enforcement Authority is a separate statutory district with its own mill levy dedicated to providing law enforcement services. The LEA Fund accounts for revenue generated from the 4.5 mills levied to residents in the unincorporated areas of Douglas County which then funds the patrol and other related public safety services provided to these citizens. The ending fund balance for 2011 of $16,246,524 was an increase of $2,943,101 (22.1%) when compared to Because property tax collections in 2011 were basically flat, and property taxes are the major revenue source in the LEA Fund, revenue reported by the LEA Fund in 2011 was basically flat. Total revenue did decrease $0.3 million from 2010 due to reduced traffic fine collections. Expenditures in the LEA Fund also increased modestly, with an increase of only $0.2 million over 2010 expenditures. Road Sales and Use Tax Fund The Road Sales and Use Tax Fund accounts for revenue received from a dedicated sales tax which is restricted to be used for roadway infrastructure construction. Of the County s total 1.0% sales tax, 0.4% was approved by the voters for this purpose. In November 2007, the voters of Douglas County voted to extend the 0.4% sales and use tax dedicated for the improvement and maintenance of the County s roads and bridges for another 20 years, extending it through December 31, The 2011 year end fund balance of $25,604,904 was a decrease of $2,999,863 (-10.5%) when compared to Of this ending fund balance, $4.0 million is assigned to cover subsequent year expenditures, and $14.0 million is already committed to spending in the 2012 budget through capital project re-appropriations. 20

30 Management s Discussion and Analysis December 31, 2011 Total operating revenue decreased $0.9 million (-4.7%) in The dedicated sales tax revenue for the Road Sales and Use Tax Fund increased $0.2 million (2.2%) after taking into account the shareback of sales taxes to incorporated areas of the County required by statute. Total sales and use tax revenue increased $1.1 million (7.5%), however, because the County signed new intergovernmental agreements with the incorporated municipalities located with in their boundaries total shareback expense increased $0.9 million (19.8%). The previous shareback agreement included Castle Rock, Parker and Larkspur, and required the County to remit 100% of the sales tax collected within those municipalities back to the municipalities for municipal transportation purposes. The new agreement which took effect January 1, 2011 requires the County to remit 75% of the sales tax collected within the boundaries of Castle Rock, Parker, Larkspur and Lone Tree; excluding a predefined Lone Tree Exception Area (generally described as the original Park Meadows Mall area). Intergovernmental revenue in the form of contributions from cities and towns within the County decreased $2.0 million (86.8%). During 2010 the County received $0.8 million from the Town of Parker to assist in the extension of Hess Road and $1.5 million from the City of Lone Tree to assist with the extension of Ridgegate Road. In 2011 the only contribution received was a final payment from the City of Lone Tree for the Ridgegate Road Extension. Due to the issuance of $13.8 million in Road Sales and Use Tax bonds in April 2010 other financing sources decreased $14.1 million in 2011 Expenditures in the Road Sales and Use Tax Fund decreased $3.7 million (-16.8%) in 2011 when compared to There was an increase in operating expenditures of $2.7 million (114%) due to contributions of $2.9 million to Colorado Department of Transportation, an increase of $1.4 million over the 2010 donation, and $1.9 million to the City of Lone Tree. This expense category varies widely from year to year as various projects request funding from the County. Capital outlay decreased $6.9 million (-46.9%) in The completion of the Ridgegate Road project in 2010 caused a reduction of $4.1 million and $1.1 million less was spent on the Hess Road extension in 2011 than in There were also expenses of $0.6 million in 2010 for the Perry Park Emergency Evacuation Exit with no expense for this project in As stated above there was also an increase in the intergovernmental support to municipalities for their shareback portion of the sales and use tax of $0.9 million. Justice Center Sales and Use Tax Fund The Justice Center Sales and Use Tax Fund accounts for monies received from a dedicated sales tax that must be utilized for capital improvements and operating costs associated with the County s Robert A. Christensen Justice Center. In November 2007, the voters of Douglas County extended the sunset date from December 31, 2010 to December 31, 2020 for 0.13% of the tax. The remaining 0.10% that was scheduled to sunset on December 31, 2010 will now remain in perpetuity along with the existing 0.20% for ongoing operating costs. The 2011 ending fund balance, $26,793,949, was an increase of $7,565,872 (39.3%) when compared to Total revenues in the Justice Center Sales and Use Tax Fund increased $1.3 million (7.4%). Due to the fact that sales tax revenues are the only major revenue source for this fund the improving economy accounted for increased sales tax receipts of $1.3 million (7.5%). Expenditures by the Justice Center Sales and Use Tax Fund are used exclusively to build, operate and maintain facilities. Capital outlay decreased $8.9 million (-83.9%) in The additional expense in 2010 was due to the construction of a new substation in Highlands Ranch which was opened in early

31 Management s Discussion and Analysis December 31, 2011 Other Non-major Governmental Funds Combined fund balances in the other nonmajor governmental funds at the close of the 2011 fiscal year totaled $44,085,501, representing a decrease of $2,884,753 (6.1%) when compared to the adjusted beginning fund balance in 2011 of $46,970,254. Due to the Human Services Fund reclassification in 2011 to a major fund and the Open Space, Parks and Trails Fund to a non-major fund, the 2011 beginning fund balance of $46,970,254 for non-major governmental funds includes a decrease of $4,945,803 (Human Services Fund beginning fund balance) and an increase of $9,480,947 (Open Space, Parks and Trails beginning fund balance). Excluding the Capital Replacement Fund, the combined fund balance at the end of 2011 for the remaining capital projects non-major funds total $6,275,251, a decrease of 1,879,862 (23.1%) when compared to Because the Capital Expenditures Fund currently has no dedicated revenue source, any improvements required by County general government buildings will reduce the balance of this fund. Proprietary Funds Total net assets of the Internal Service Funds at the end of the year amounted to $2,313,988, comprised of $463,324 in the Employee Benefits Self-Insurance Fund and $1,850,664 in the Property and Liability Self- Insurance Fund. Asset and Debt Administration Capital Assets Douglas County s capital assets for its governmental activities as of December 31, 2011, amounts to $559,786,150 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, equipment, open space and recreational facilities, computer software, roads, streets, bridges and other infrastructure. Additional information can be found in Note 5. Major capital asset events during 2011 included: Additional construction costs for Ridgegate Road from Peoria to Mainstreet of $0.4 million. The purchase and remodel of an elections warehouse/office building in Castle Rock added $1.4 million to capital assets in Three artificial turf fields were installed in Challenger Park during 2011 at a cost of $1.1 million. The County purchased the Emily Griffith Center in Larkspur adding $1.0 million to the capital assets. Significant construction commitments as of December 31, 2011 include: $0.4 million related to the completion of the Hess Road Project. $1.2 million for miscellaneous road repair and maintenance projects. Long-Term Debt At the end of the current fiscal year, Douglas County had total bonded debt principal outstanding of $45,815,000. All of the County s bonded debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). Additional information related to the County s long-term debt can be found in Note 7 to the financial statements. 22

32 Management s Discussion and Analysis December 31, 2011 Economic Conditions Affecting the County The fiscal sustainability strategies initially implemented in 2008, have allowed Douglas County to effectively and proactively manage not only the original revenue reductions caused by the recession, but to also be positioned favorably to weather the results of the forecasted 9.1% decline in property values due to the June, 2010 re-appraisal. Property taxes collected in 2012 will be the first year to reflect the decrease in property values with an expected decrease to revenues of $6.5 million (6.0%). The steep reduction in property tax revenue will also be partially offset by a projected increase of sales and use tax revenues of $3.6 million (9.6%) due to the slow but apparently persistent economic recovery. Since 2008 we have taken a deliberate, incremental approach to implement the required reductions in expenditures that we knew would be required in Through careful planning and responsible stewardship we now find the County well positioned to begin reinvesting in the community. So, without risking the hard work of the past four years or ignoring the continued uncertainty of the future we have made substantial commitments to increase public safety, improve infrastructure and reduce outstanding debt in 2012 while still maintaining adequate and fiscally responsible reserves. Through revenue dedicated to operation of the Justice Center, a total of 14 new staff positions (8 in Detentions and 6 in Dispatch) are planned. These positions will enhance the public safety of our citizens and our employees in the Justice Center. In an effort to reduce congestion on state highways 85 and C-470 the County is setting aside a total of $20.0 million in hopes of partnering with other entities/governments to enable the necessary improvements to be undertaken. The County is also recommending that the two outstanding Parks Sales and Use Tax debt issues be called (paid off) in 2012, saving an estimated $1.0 million in interest over ten years. While the Douglas County economy still faces challenges, such as stubbornly low home prices and a still sluggish job market there are further signs of improvement. Unemployment, while still high, continued to fall throughout 2011 and the steady increase in building permit activity suggests that Douglas County remains an attractive place to employers. Audit Committee The County s audit committee appointed on March 30, 2010, consists of five residents of the County; one from each commissioner district and two from the County at large. Each member serves a staggered three year term upon initial appointment. The primary purpose of the audit committee is to provide financial oversight for the financial reporting and auditor s activities to help strengthen accountability, integrity and transparency in the County. Requests for Information This financial report is designed to provide our constituents and other interested parties with a general overview of Douglas County s finances and to demonstrate the County s accountability for the monies it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to the Douglas County Finance Department, 100 Third Street, Suite 130, Castle Rock, Colorado,

33 BASIC FINANCIAL STATEMENTS 24

34 Statement of Net Assets December 31, 2011 Governmental Activities Assets: Cash and investments $ 230,084,360 Property taxes receivable 100,372,602 Accounts receivable 12,372,327 Long term notes receivable 2,749,452 Prepaid expenses 515,609 Inventories 1,503,865 Bond issuance costs 750,827 Capital assets: Land and construction in progress 123,813,111 Other capital assets, net of accumulated depreciation 435,973,039 Total assets 908,135,192 Liabilities: Accounts payable 12,367,095 Retainage payable 880,701 Accrued liabilities 2,724,343 Claims payable 870,000 Accrued interest payable 340,410 Payable to other governments 3,303,029 Developer construction advance 520,000 Security deposits 2,852,469 Deferred revenues 99,987,630 Long-term liabilities: Due within one year: Bonds payable 3,940,000 Compensated absences 4,609,799 Due in more than one year: Bonds payable 41,915,390 Compensated absences 523,034 Total liabilities 174,833,900 Net assets: Invested in capital assets, net of related debt 513,930,760 Restricted for: General Government 27,039 Public Safety 1,568,527 Community Development 753,501 Human Services 585,670 Public Works 27,323 Water Conservation Plan 11,494 Parks and Open Space 2,428,325 Recording 389,928 Developmental Disabilities 100,000 Emergencies 5,800,750 Unrestricted 207,677,975 Total net assets $ 733,301,292 See accompanying notes to basic financial statements. 25

35 Statement of Activities Year ended December 31, 2011 Program revenues Grants and Contributions Total Charges for Governmental Functions/programs Expenses services Operating Capital Activities General government $ 43,747,376 18,985,101 2,119,849 (22,642,426) Judicial 7,405, , ,173 (6,716,782) Public safety 52,088,421 5,670,200 2,660,611 (43,757,610) Highways and streets 72,264, ,468 9,199, ,131 (62,209,984) Health and human services 24,548,313 20,501,073 (4,047,240) Culture and recreation 7,996, ,470 1,004,945 (6,257,306) Conservation of natural resources 528, ,101 (419,017) Economic development and assistance 481,648 (481,648) Developmental disabilities 4,942,046 (4,942,046) Community services 333,642 (333,642) Sanitation 76,632 36,696 (39,936) Interest and fiscal charges 1,804,643 (1,804,643) Total governmental activities $ 216,217,654 25,981,503 36,096, ,131 (153,652,280) General revenues: Taxes: Property $ 109,188,097 Sales 42,263,754 Specific ownership 7,315,809 Other 240,613 Interest earnings 2,548,574 Miscellaneous 2,487,662 Total general revenues 164,044,509 Change in net assets 10,392,229 Net assets, January 1 722,909,063 Net assets, December 31 $ 733,301,292 See accompanying notes to basic financial statements. 26

36 Balance Sheet Governmental Funds December 31, 2011 General Road and Human Assets Fund Bridge Services Equity in treasurer s cash and investments $ 70,861,580 38,399,270 5,187,196 Property taxes receivable 62,189,106 20,010,298 1,427,786 Accounts receivable 3,471,653 1,392, ,085 Long term notes receivable 2,166,924 Prepaid items 487,884 4,725 Inventories 2,337 1,501,528 Total assets $ 137,012,560 63,470,060 7,073,792 Liabilities and Fund Balance Liabilities: Accounts payable $ 7,875,200 1,317, ,810 Retainage payable 341,389 Accrued liabilities 1,933, , ,541 Developer construction advance 520,000 Security deposits 151,314 2,611,902 41,600 Payable to other governments 438,749 Deferred revenues 61,954,440 19,921,460 1,422,445 Total liabilities 72,352,973 24,991,489 1,746,396 Fund balance: Non-spendable 490,221 3,668,452 4,725 Restricted 8,060,499 19, ,228 Committed 7,744,783 11,436,317 Assigned 22,911,233 23,354,047 4,789,443 Unassigned 25,452,851 Total fund balances 64,659,587 38,478,571 5,327,396 Total liabilities and fund balances $ 137,012,560 63,470,060 7,073,792 See accompanying notes to basic financial statements 27

37 Justice Law Road Center Other Total Enforcement Sales and Sales and Nonmajor Governmental Authority Use Tax Use Tax Governmental Funds 16,494,194 25,701,250 24,046,370 46,121, ,811,021 12,271,457 4,473, ,372, ,752 2,697,169 2,954,638 1,209,335 12,371,672 2,166, ,609 1,503,865 28,958,403 28,398,419 27,001,008 51,804, ,718,693 30,238 2,412, , ,908 12,254, , ,275 57, , ,591 19,700 2,724, ,000 46,653 1,000 2,852,469 2,864,280 3,303,029 12,255,397 4,433,888 99,987,630 12,711,879 2,793, ,059 7,718, ,522,261 4,163, ,000 2,529,075 11,692,557 13,986,781 1,499, ,738 34,780,123 15,696,524 11,618,123 25,294,445 41,443, ,107,503 25,452,851 16,246,524 25,604,904 26,793,949 44,085, ,196,432 28,958,403 28,398,419 27,001,008 51,804, ,718,693 28

38 Reconciliation of the Governmental Funds Balance Sheet to the Governmental Activities on the Statement of Net Assets December 31, 2011 Total governmental fund balances $ 221,196,432 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. This amount is net of accumulated 559,786,150 depreciation of $348,143,853 Bond issuance costs are assets amortized over the life of the debt 750,827 Certain long term receivables are not currently available and, therefore are 582,528 not reported in the funds. Long-term liabilities, including bonds payable and compensated absences, are not due and payable in the current period and therefore are not reported in the funds: Bonds payable (45,815,000) Loss on refunding bonds amortized over the life of the debt 834,690 Debt premium (875,080) Compensated absences (5,132,833) Accrued interest payable (340,410) (51,328,633) Internal service funds are used by management to charge the costs of insurance and other services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. 2,313,988 Net assets of governmental activities $ 733,301,292 See accompanying notes to basic financial statements. 29

39 30

40 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year ended December 31, 2011 General Road and Human Fund Bridge Services Revenues: Taxes $ 67,823,584 28,233,190 1,534,605 Licenses and permits 4,970, ,971 Intergovernmental 5,041,587 9,360,788 20,392,863 Charges for services 15,480,068 82,737 Fines and forfeits 206,986 Interest on investments 1,330,089 5,490 Donations, rents, reimbursements, other 1,741,288 27, ,029 Total revenues 96,594,256 37,992,089 22,349,497 Expenditures: Current: General government $ 39,150,489 Judicial 7,400,948 Public safety 31,769,981 Highways and streets 6,282,360 28,693,730 Sanitation 68,849 Health and human services 2,390,330 21,959,904 Culture and recreation 3,436,725 Conservation of natural resources 415,033 Economic development and assistance 481,648 Developmental disabilities Community services 320,269 Total current 91,716,632 28,693,730 21,959,904 Capital outlay 1,852,567 1,170,707 Debt service: Principal Interest and fiscal charges Total debt service Total expenditures 93,569,199 29,864,437 21,959,904 Excess (deficiency) of revenues over expenditures 3,025,057 8,127, ,593 Other financing sources (uses): Sale of capital assets 48,552 32,328 Transfers in 10,650,932 1,140,000 Transfers out (683,000) (1,200,000) (8,000) Total other financing sources (uses) 10,016,484 (27,672) (8,000) Net change in fund balances 13,041,541 8,099, ,593 Fund balance, January 1 51,618,046 30,378,591 4,945,803 Fund balance, December 31 $ 64,659,587 38,478,571 5,327,396 See accompanying notes to basic financial statements. 31

41 Justice Law Road Center Other Total Enforcement Sales and Sales and Nonmajor Governmental Authority Use Tax Use Tax Governmental Funds 14,266,099 16,907,125 18,172,251 12,071, ,008,273 5,252, , , ,433 36,583,871 1,673, ,683 17,349,283 1,290,041 7,210 1,504, , , , ,369 2,548,574 94,892 4, ,157 2,511,859 18,009,811 17,523,415 18,433,383 13,856, ,758, ,447 39,566,936 7,400,948 14,396,620 1,155,330 36,138 47,358,069 10,925,813 45,673 45,947,576 68,849 24,350,234 2,549,686 5,986, , ,648 4,942,046 4,942, ,269 14,396,620 10,925,813 1,155,330 7,989, ,838, ,657 7,449,802 1,709,249 3,414,908 16,316,890 3,850,000 3,850,000 1,752,304 1,752,304 5,602,304 5,602,304 15,116,277 18,375,615 2,864,579 17,007, ,757,213 2,893,534 (852,200) 15,568,804 (3,150,931) 26,001,509 49,567 15, , ,000 6,750,466 19,224,398 (2,147,663) (8,700,932) (6,484,803) (19,224,398) 49,567 (2,147,663) (8,002,932) 266, ,962 2,943,101 (2,999,863) 7,565,872 (2,884,753) 26,147,471 13,303,423 28,604,767 19,228,077 46,970, ,048,961 16,246,524 25,604,904 26,793,949 44,085, ,196,432 32

42 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year ended December 31, 2011 Net change in fund balances total governmental funds $ 26,147,471 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. This is the amount by which depreciation exceeded capital outlays in the current period: Capital asset additions 16,316,890 CIP capitalized and written off in current year (discontinued projects) (4,071,706) Depreciation expense (31,107,087) Excess of depreciation over capital outlay (18,861,903) Sale of capital assets is reported as revenues in the governmental funds and not reported as revenues in the statement of activities. (145,962) The statement of activities reports gains arising from the sale of capital assets. Conversely, governmental funds do not report any gain on the sale of capital assets. 42,561 Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Bonds payable 3,850,000 Revenues in the governmental funds that provide current financial resources were previously accrued in the statement of activities when they were earned. (82,205) Some expenses reported in the statement of activities do not provide/require the use of current financial resources and therefore, are not reported as revenues/expenditures in governmental funds: Accrued interest 23,521 Compensated absences (334,322) Donation of capital assets from others 50,283 Amortization of issuance costs and premium and loss on refunding (75,860) (336,378) Internal service funds are used by management to charge the costs of certain activities, such as insurance to individual funds. The net revenue (expense) of certain internal service funds is reported with governemental activities. (221,355) Change in net assets of governmental activities $ 10,392,229 See accompanying notes to basic financial statements. 33

43 Statement of Net Assets Proprietary Funds December 31, 2011 Assets Governmental Activities Internal Service Funds Current assets: Equity in treasurer s cash and investments $ 3,273,339 Accounts receivable 655 Prepaid expenses 23,000 Total current assets 3,296,994 Total assets $ 3,296,994 Liabilities Current liabilities: Accounts payable $ 113,006 Accrued claims payable 870,000 Total current liabilities 983,006 Total liabilities 983,006 Net Assets Unrestricted 2,313,988 Total net assets 2,313,988 Total liabilities and net assets $ 3,296,994 See accompanying notes to basic financial statements. 34

44 Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds Year ended December 31, 2011 Governmental Activities Internal Service Funds Operating revenue: Charges for services $ 1,875,358 Other operating revenue 58,009 Total operating revenue 1,933,367 Operating expenses: Fixed charges 666,156 Insurance benefits/claims 1,488,566 Total operating expenses 2,154,722 Operating loss (221,355) Decrease in net assets (221,355) Total net assets beginning of year 2,535,343 Total net assets end of year $ 2,313,988 See accompanying notes to basic financial statements. 35

45 Statement of Cash Flows Proprietary Funds Year ended December 31, 2011 Governmental Activities Internal Service Funds Cash flows from operating activities: Cash received from internal customers $ 1,941,317 Cash payments to external suppliers for goods and services (1,924,450) Net cash provided by operating activities 16,867 Net increase in cash and cash equivalents 16,867 Cash and cash equivalents, January 1 3,256,472 Cash and cash equivalents, December 31 $ 3,273,339 Reconciliation of operating loss to net cash provided by operating activities: Operating loss $ (221,355) Adjustments to reconcile operating income to net cash provided by operating activities: Decrease in accounts payable (27,544) Increase in estimated liability for claims and judgments 270,816 Increase in prepaid reserves (13,000) Decrease in accounts receivable 7,950 Total adjustments 238,222 Net cash provided by operating activities $ 16,867 See accompanying notes to basic financial statements. 36

46 Statement of Fiduciary Assets and Liabilities Fiduciary Funds December 31, 2011 Assets Total Agency Funds Equity in treasurer s cash and investments $ 7,922,815 Accounts receivable 2,140,108 Total assets $ 10,062,923 Liabilities Accounts payable $ 2,157,219 Due to others 7,905,704 Total liabilities $ 10,062,923 See accompanying notes to basic financial statements 37

47 NOTES TO BASIC FINANCIAL STATEMENTS 38

48 (1) Reporting Entity Notes to Basic Financial Statements December 31, 2011 Douglas County, Colorado (the County) was formed in 1861 as a political subdivision of the State of Colorado and is subject to its statutes and empowerments. A three-member Board of County Commissioners, elected at large, governs the County. In addition, there are six other elected officials of the County which are the Assessor, Clerk and Recorder, Coroner, Sheriff, Surveyor and Treasurer. The County provides a wide range of services to its residents, including public safety, planning, zoning, building inspection, property assessment, elections, document recording, motor vehicle registration, tax assessment and collection, infrastructure construction and maintenance, parks and open space, social services, and other general administrative services. The definition of the reporting entity is based primarily on the notion of financial accountability. The elected officials governing Douglas County are accountable to their constituents for their public policy decisions, regardless of whether those decisions are carried out directly through the operations of the County or by their appointees through the operations of a separate entity. The County is financially accountable for legally separate organizations if 1) County officials serve as the governing body of the entity or appoint a voting majority of the entity s governing body and 2) the County can impose its will on that entity or there is a potential for specific financial benefits to or burdens on the County through the entity. (a) Blended Component Units As required by US GAAP, these financial statements represent the County and its component units entities for which the County is considered to be financially accountable. Although legally separate entities, blended component units are, in substance, part of the government s operations and so financial information related to these blended units are reported with the financial data of the County. The following entities are included in the financial statements as blended component units based upon their significant financial and operational relationships to the County: Douglas County Law Enforcement Authority The Law Enforcement Authority (LEA) is a district formed as a political subdivision of the state to provide law enforcement services to the unincorporated areas of the County. The district is empowered to levy property taxes (not to exceed seven mills) and is governed by the Board, which sets the mill levy and adopts and appropriates the LEA budget. This fund is classified as a Special Revenue Fund for financial reporting purposes. Douglas County Woodmoor Mountain General Improvement District This improvement district was formed in late 1992 as a political subdivision of the state upon petition by a majority of the electors who own taxable real or personal property within the district. The purpose of the district is to maintain and to make capital improvements to the roads in the district. The district has the power to levy property taxes, and the Board constitutes exofficio the board of directors of the district. The district s budget is adopted independently from the overall County budget. This entity is classified as a Special Revenue Fund for financial reporting purposes. 39

49 Notes to Basic Financial Statements December 31, 2011 Douglas County Lincoln Station Local Improvement District This improvement district was formed in January 2009 for the purpose of imposing sales tax within the boundaries of the LID to assist in financing the design, construction, installation, operation and maintenance of certain public improvements within the LID that the County is authorized to provide. These improvements generally consist of transportation improvements supporting the Lincoln Avenue Light Rail Station, including street and roadway improvements and related traffic and safety controls, park and recreation improvements, water and sanitation improvements and drainage improvements. This entity is classified as a Special Revenue Fund for financial reporting purposes. (b) Related Organizations The Board is responsible for appointing board members for other organizations; however, the commissioners accountability does not extend beyond those appointments. The commissioners themselves may serve on other organizations boards and provide some financial and operational influence, but they do not serve in a controlling capacity. These organizations are not included as component units of the County; however, any financial support and obligations of the County related to these organizations are reported in the County s financial statements. (2) Summary of Significant Accounting and Reporting Policies This summary of significant accounting and financial reporting policies of the County is presented to assist the reader in effectively evaluating the County s financial statements. These policies conform to US GAAP applicable to governmental entities. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles and their pronouncements have been consistently applied in the preparation of the accompanying financial statements. The following is a summary of the significant policies. (a) Basic Financial Statements Basic financial statements consist of the government-wide financial statements and the fund financial statements. The government-wide financial statements include a statement of net assets and a statement of activities. The fund financial statements provide a more detailed level of financial information for the various governmental and proprietary funds. Government-wide financial statements display information about the reporting entity as a whole. The effect of inter-fund activity has been removed from these statements, which focus more on the sustainability of the County as an entity and the change in aggregate financial position resulting from the activities of the reporting period. The statement of net assets presents the County s non fiduciary assets and liabilities, with the difference reported as net assets. Since the fiduciary funds are not available to the County, these funds are not reported in the government-wide statements. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to citizens who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular 40

50 Notes to Basic Financial Statements December 31, 2011 function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. Fund financial statements display information at the individual fund level. Each fund is considered to be a separate accounting entity. The County s funds are classified and summarized as governmental, proprietary, or fiduciary. Major individual governmental funds are reported as separate columns in the fund financial statements. Non-major funds are reported in a single column in the financial section of the basic financial statements and detailed further in the supplementary section. (b) Basis of Presentation The financial transactions of the County are recorded in individual funds. Each fund is accounted for by providing a separate set of self-balancing accounts that is comprised of assets, liabilities, fund balance, revenues, and expenditures. The various funds are reported by classification within the financial statements. The County reports the following major governmental funds: General Fund The General Fund is the County s primary operating fund which accounts for all financial operations of the County except those required to be accounted for in another designated fund. Principal sources of revenue for this fund are property taxes, licenses and permits, intergovernmental assistance and charges for services. Primary expenditures are for functions related to public safety, planning and zoning, property valuation, tax collection, vehicle licensing, document recording, building inspection, engineering, culture and recreation and other County administrative functions. Road and Bridge Fund The Road and Bridge Fund is a special revenue fund that is funded through the assessment of property tax and accumulates costs related to the construction/installation and maintenance of County roads, bridges and traffic signals with the exception of costs associated with engineering and public works administration, which are recorded in the General Fund. By state law, Colorado counties are required to establish a Road and Bridge Fund with a portion of any property taxes assessed for this purpose to be allocated to cities and towns located within that county. Human Services Fund - As required by state law, this fund is used to account for all federal and state public aid and assistance programs administered by the County. Restricted revenue sources include designated property taxes. Law Enforcement Authority (LEA) Fund The LEA Fund is a special revenue fund which accounts for revenues received from property tax levied by the Law Enforcement Authority (a special taxing district reported as a blended component unit of the County). Monies are used to provide public safety services to unincorporated areas of the County by the Sheriff s Office. Road Sales and Use Tax Fund The Road Sales and Use Tax Fund is a special revenue fund which accounts for revenues received from the 0.4% sales and use tax approved by voters in 1995 to be used for the improvement and maintenance of County roads and bridges. The incorporated municipalities located within the County share these revenues. In November 2007, the voters of Douglas County voted to extend the 0.4% sales and use tax dedicated for the improvement and maintenance of the County s roads and bridges for another 20 years, extending it through December 31,

51 Notes to Basic Financial Statements December 31, 2011 Justice Center Sales and Use Tax Fund The Justice Center Sales and Use Tax Fund is a special revenue fund which accounts for revenues received from the 0.43% sales and use tax approved by the voters in 1995 to be used for the construction and ongoing operation of the County s Justice Center. In November 2007, voters of Douglas County extended the sunset date from December 31, 2010 to December 31, 2020 for 0.13% of the tax. The remaining 0.10% that was set to sunset on December 31, 2010 will now remain in perpetuity along with the existing 0.20% for ongoing operating costs. In addition, the County reports the following fund types: Non-major Governmental Funds In addition to the major funds listed above, the County also reports on thirteen non-major governmental funds. There are eight special revenue type funds which account for revenues generated from various sources such as property and sales taxes, grants and contributions. These funds expend those revenues for open space, trails and parks, solid waste disposal, LID and GID improvements. Four of the non-major governmental funds are capital project funds. These funds account for the financial resources collected and used to acquire, construct, maintain and replace capital assets including facilities, vehicles and equipment. The remaining nonmajor governmental fund is a debt service fund which accounts for the payment of principal and interest on revenue bonds issued by the County. The revenues used for debt payments are generated from sales and use taxes. Internal Service Funds These funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the County on a cost-reimbursement basis. Self-insurance programs for employee benefits and property and liability are accounted for in these funds. Fiduciary Funds These funds account for assets held by the County as an agent for other entities or organizations. These funds are custodial in nature (assets equal liabilities) and do not involve the measurement of results of operations. They are excluded from the government wide statements because they do not report any net assets. The County fiduciary funds include; the Treasurer s Fund, which accounts for the receipt and disbursement of all revenues received by the County; the Public Trustee Fund used to account for the fiduciary activities of the Public Trustee; Douglas County Jail Escrow/Inmate Commissary Fund which is used to account for the receipt and disbursement of all inmate escrow and commissary transactions, the Sheriff Explorer Post funds, and the Colorado Information Sharing Consortium (CISC) which has appointed Douglas County to serve as their fiduciary agent. (c) Measurement Focus and Basis of Accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus. The government-wide financial statements are presented on a full accrual basis of accounting with an economic resources measurement focus concentrating on an entity or fund s net assets. All transactions and events that affect the total economic resources (net assets) during the period are reported. Under the full accrual basis of accounting, revenues are recorded when earned and 42

52 Notes to Basic Financial Statements December 31, 2011 expenses are recorded at the time an obligation (liability) is incurred, regardless of the timing of related cash inflows and outflows. Fiduciary funds use the accrual basis of accounting. Governmental funds financial statements are presented on a modified accrual basis of accounting with a current financial resources measurement focus. This measurement focus concentrates on the fund s resources available for spending in the near future. Only transactions and events affecting the fund s current financial resources during the period are reported. Under modified accrual accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered available if collected within 60 days of year-end. The County reports deferred revenue when the potential revenue does not meet both the measurable and available criteria for recognition in the current period. Property taxes, grant revenue, sales tax, and highway user tax are the primary revenue sources subject to accrual. Property taxes are reported as receivable and deferred revenue when an enforceable lien on the property exists. The County bills and collects its own property taxes and the taxes of various taxing agencies. Collections and remittance of taxes for the other taxing agencies are accounted for in the Treasurer s Fund (See Note 1 (f)). Under modified accrual accounting, governmental fund liabilities (and expenses) should be accrued in the absence of applicable modification. Such modifications exist for long-term indebtedness, compensated absences, claims and judgments and special termination benefit liabilities. These liabilities are accrued in the governmental funds only to the extent they are due. Since the governmental fund financial statements are presented on a different measurement focus and basis of accounting than the government-wide statements, reconciliation is provided in the fund financial statements. (d) Equity in Treasurer s Cash and Investments All cash is deposited with and invested through the County Treasurer except for funds held by third-parties (trustees) or by separate legal entities that are included in the County reporting entity. Cash includes amounts in demand deposits, money market accounts, and certificates of deposit. For purposes of the statement of cash flows, cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments with original maturities of three months or less. Investments are stated at fair value in accordance with the Colorado Revised Statutes and the County s investment policy. The Treasurer maintains a cash and investment pool for all County funds. Each fund s accounting records reflect equity in pooled cash and investments. All earnings on investments are distributed to each fund based upon their proportionate share of pooled cash and investments at the end of each month. At year-end, earnings that have been distributed to funds for which there is no statutory requirement regarding allocation of interest may be transferred to the General Fund. (e) Receivables Property Taxes Property taxes are levied on January 1 based on assessed valuation as of the previous January 1 when an enforceable lien is placed on the property. Property taxes payable in the following year are reported as a receivable at December 31. All current taxes receivable are offset by the full amount of the deferred revenue. Taxes are payable in full by April 30, or in two equal installments due 43

53 Notes to Basic Financial Statements December 31, 2011 February 28 and June 15. Management has determined there are no significant uncollectible amounts; therefore, property taxes receivable are reported without an uncollectible allowance. (f) Receivables General accounts receivable are also reported at gross as management has determined no significant uncollectible amounts. The majority of the receivable balance relates to sales and use taxes due to the County at year end. A portion of the balance also represents a long term receivable that will be repaid over a 10 year period beginning in (g) Inter-fund Transactions These are transactions between funds that would be treated as revenues or expenditures if the provision of services is reasonably equivalent to the amount paid. Transactions that constitute reimbursements of a fund for expenditures initially made from that fund which are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. All other inter-fund transactions are reported as transfers. At year-end, outstanding balances between funds are reported as due to/from other funds. (h) Inventories Inventories are valued at cost which is determined using the first-in, first-out (FIFO) method. Inventory reported in the Road and Bridge Fund consists of expendable parts/supplies and fuel. These items are recorded as expenditures at the fund level when they are purchased. Year-end adjustments are made to the recorded non-spendable fund balance and to the inventory account based on the physical inventory available at year end. Inventories do not constitute available resources even though they are a component of net current assets. (i) Prepaid Items Certain payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. (j) Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges) are reported in the government-wide financial statements. In the governmental fund statements, which follow modified accrual accounting, capital assets are charged to expenditures when purchased, but are capitalized in the proprietary funds statements, as those funds follow full accrual accounting. Capital assets are defined as assets with an initial individual cost of $5,000 or more and a useful life of more than one year and are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated assets are recorded at the estimated fair value as of the date of the donation. Additions or improvements that significantly extend the useful life of an asset are capitalized. Other costs incurred for normal maintenance and repairs that do not add value to the asset or materially extend the asset s useful life are not capitalized. All reported capital assets are depreciated for reporting purposes in the government-wide financial statements. Improvements are depreciated over the remaining useful lives of the related capital assets. 44

54 Notes to Basic Financial Statements December 31, 2011 Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives: Buildings Building improvements Improvements other than buildings Infrastructure Equipment Heavy equipment Vehicles 40 years years 5 40 years years 3 5 years 7 20 years 3 5 years (k) Compensated Absences Standard vacation is earned up to an amount of hours ranging from 96 to 168 hours annually based upon eligibility and tenure. The maximum accumulation limit is twice the standard annual accrual rate. At termination, employees are paid for any unused vacation leave up to the applicable maximum limit. Compensatory time is granted (except for employees classified as exempt under the Fair Labor Standards Act) at the rate of one and one-half hours for each overtime hour worked but must be taken before the end of the last pay period of any given year. Any unused compensatory time is paid to the employee before the end of the fiscal year; therefore, there is no reportable compensatory time liability. The County does not pay for unused sick leave upon termination; therefore, amounts are not accrued for sick leave liability, except under the sick leave conversion policy. The entire compensated absence liability is reported in the government-wide financial statements. A liability is recorded for compensated absences in the governmental funds only if it has matured as a result of employee resignation or retirement. (l) Long-Term Obligations In the government-wide statement of net assets and the proprietary fund statement of net assets, long-term debt and other long-term obligations are reported as liabilities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. In the financial statements for governmental fund types, bond proceeds and bond premiums are reported as other financing sources. Bond discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. (m) Elimination of Internal Activity and Classification of Internal Service Funds Revenues and Expenditures Transactions between funds that would be treated as revenues, expenditures, or expenses if they involve entities external to the County are accounted for as revenues, expenditures, or expenses in the funds. At year-end, outstanding balances between funds are reported in the fund financial 45

55 Notes to Basic Financial Statements December 31, 2011 statements. Amounts reported in the funds as due to or due from other funds are eliminated in the governmental activities column of the statement of net assets. The County eliminates its internal service activity in the statement of activities. This is accomplished by eliminating the revenues and expenses of the internal service funds against each other, and then distributing the residual amount among the various functions based upon the volume of activity they had during the year with each internal service fund. (n) Fund Balances (See Note 4) Beginning with fiscal year 2010 the County implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government s fund balances more transparent. In the fund financial statements the following classifications describe the relative strength of the spending constraints. Non-spendable fund balance - The portion of fund balance that cannot be spent because it is either not in spendable form (such as inventory) or is legally or contractually required to be maintained intact. Restricted fund balance - The portion of fund balance constrained to being used for a specific purpose by external parties (such as grantors or bondholders), constitutional provisions or enabling legislation. Committed fund balance - The portion of fund balance constrained for specific purposes according to limitations imposed by the County s highest level of decision making authority, the Board of County Commissioners, prior to the end of the current fiscal year. The constraint may be removed or changed only through formal action of the Board of County Commissioners. Assigned fund balance - The portion of fund balance set aside for planned or intended purposes. The intended use may be expressed by the Board of County Commissioners or other individuals authorized to assign funds to be used for a specific purpose. Assigned fund balances in special revenue funds will also include any remaining fund balance that is not restricted or committed. This classification is necessary to indicate that those funds are, at a minimum intended to be used for the purpose of that particular fund. Unassigned fund balance - The residual portion of fund balance that does not meet any of the above criteria. The County will only report a positive unassigned fund balance in the General Fund. If both restricted and unrestricted amounts of fund balance are available for use when an expenditure is incurred, it is County policy to use restricted amounts first. Unrestricted fund balance will be used in the following order; committed, assigned and unassigned. 46

56 (o) Net Assets Notes to Basic Financial Statements December 31, 2011 In the government-wide financial statements net assets are categorized into three categories. The first is net assets invested in capital assets net of related debt, reduced by accumulated depreciation and any outstanding debt incurred to acquire, construct or improve those assets excluding unexpended bond proceeds, restricted or unrestricted. This category represents net assets related to property, plant, equipment and infrastructure. The second category is restricted, which represents assets restricted by requirements of revenue bonds, other externally imposed constraints, or by legislation, in excess of the related liabilities payable from restricted assets. The third category; unrestricted net assets, consist of all net assets that do not meet the definition of either of the other two categories of net assets. (p) Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates. (3) Deposits and Investments A summary of cash and investments as of December 31, 2011 follows: Petty cash $ 17,870 Cash deposits 208,174,401 Investments 29,814,904 Total cash and investments $ 238,007,175 Cash and investments are reported in the financial statements as follows: Cash and investments $ 230,084,360 Agency cash and investments 7,922,815 Total cash and investments $ 238,007,175 Cash Deposits The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government deposit cash in eligible public depositories. Eligibility is determined by state regulations. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2011, the County had bank deposits totaling $196,859,778, of this, $5,595,655 was covered by FDIC, including the FDIC temporary liquidity guarantee program. The remaining balance of $191,264,123 was covered by PDPA. 47

57 Investments Notes to Basic Financial Statements December 31, 2011 The County is required to comply with Colorado State statutes, which specify allowable investment instruments. The statutes define the permissible rating, maturity, custodial and concentration risk criteria in which local governments may invest to include: Obligations of the United States and certain U.S. government agency securities General obligation and revenue bonds of U.S. local government entities Bankers acceptance of certain banks Commercial paper Local government investment pools Written repurchase agreements collateralized by certain authorized securities Certain money market funds Guaranteed investment contracts At December 31, 2011 the County had the following investments: Less Than Fair Investment Type Rating 1 Year 1-5 Year Value Corporate Bond Securities AA+ $ 12,142,440 $ $ 12,142,440 Federal Agency Coupon Securities AA+ 1,651,813 10,093,550 11,745,363 Local Government Investment Pool AAAm 5,927,101 5,927,101 Total $ 19,721,354 $10,093,550 $ 29,814,904 Interest Rate Risk The County s investment policy follows State statutes. State statutes limit investments in U.S. Treasury Agency securities to an original maturity of five years, and corporate securities to an original maturity of three years. Credit Risk The County s investment policy and State statutes limit investments in U.S. government agency securities to the highest rating issued by at least three nationally recognized statistical rating organizations (NRSROs). Corporate securities must not be rated below AA- or Aa3 by any NRSRO. The County s investment policy and State statutes limit investments in money market funds to those with the highest rating issued by NRSROs and with a constant share price, with a maximum remaining maturity in accordance with Rule 2a-7, and either have assets of one billion dollars or the highest rating issued by a NRSRO. Concentration of Credit Risk - The County will limit credit risk, the risk of loss due to the failure of the security issuer or backer, by diversifying the investment portfolio so that potential losses on individual securities will be minimized. In order to maintain diversification and avoid a concentration of investments by any one type, the County s internal investment policy states that up to 75% of the portfolio may be invested in government sponsored enterprises (GSE). No more than 35% of the total portfolio may be invested in the securities of a single GSE. 48

58 Investment Type Notes to Basic Financial Statements December 31, 2011 Fair Value % of Total Portfolio Held Corporate Bonds 12,142, % Federal National Mortgage Association FNMA 10,093, % Local Government Investment Pool - CSAFE 5,174, % Federal Home Loan Bank FHLB 1,651, % Local Government Investment Pool - Colotrust 752, % The County held $12,142,440 of eligible funds, classified as Corporate Bonds, which are protected under the FDIC Temporary Liquidity Guarantee Program. Local Government Investment Pool At December 31, 2011, the County had $752,146 and $5,174,955 invested respectively in the Colorado Local Government Liquid Asset Trust (ColoTrust) and Colorado Surplus Asset Fund Trust (CSAFE), investment vehicles established by State statute for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces the requirements of creating and operating the pools. The pools operate similarly to a money market fund and each share is equal in value to $1.00. The CSAFE pools are rated AAAm by Standard and Poor s as of December 31, 2011 and have a weighted average maturity of 37 days. The Douglas County Public Trustee is the only division with funds invested in the ColoTrust pool which is rated AAAm and has a weighted average maturity of 11 days. Investments of the pools are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. Substantially all securities owned are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian s internal records identify the investments owned by the participating governments. 49

59 (4) Fund Balances Notes to Basic Financial Statements December 31, 2011 The specific purposes for each fund balance classification on the balance sheet are detailed in the table below. General Fund Road and Bridge Fund Human Services Law Enforcement Authority Road Sales and Use Tax Justice Center Sales and Use Tax Other Nonmajor Governmental Fund Balances Total Nonspendable: Inventory $ 2,337 1,501,528 1,503,865 Accounts Receivable 2,166,924 2,166,924 Prepaid amounts 487,884 4, ,609 Restricted for: Emergencies (TABOR) 5,250, , ,800,750 General Government 27,039 27,039 Public Safety 1,568,527 1,568,527 Human Services 52, , ,670 Community Development 753, ,501 Recording 389, ,928 Open Space, Parks and Trails 2,428,325 2,428,325 Developmental Disabilities 100, ,000 Water Conservation Plan 11,494 11,494 Public Works 7,568 19,755 27,323 Committed to: Public Works 195,516 11,436,317 13,986,781 25,618,614 General Government 574, ,174 Historic Preservation 2,368 2,368 Water/Economic Development 5,038,800 5,038,800 Culture and Recreation 1,556, ,738 1,669,040 Public Safety 310,613 1,499,504 1,810,117 Human Services 67,010 67,010 Assigned to: General Government 10,843,799 10,843,799 Water/Economic Development 5,001,500 5,001,500 Community Development 127, ,206 Information Technology 692, ,811 Public Safety 335,664 14,806,862 23,527, ,539 38,876,610 Public Works 127,196 1,916,536 5,886, ,654 8,282,982 Human Services 3,045,317 3,045,317 Culture and Recreation 2,141,105 2,141,105 Developmental Disabilities Natural Resources 2,400 7,296,737 7,299,137 Solid Waste Disposal 236, ,147 Capital Projects/Replacements 18,680,156 18,680,156 Debt Service 269, , ,580 Working Capital/Rev Shortfall 3,939,963 2,985, , ,662 1,513,500 1,766, ,618 12,444,764 Subsequent Years Expenses 1,840,694 18,452, ,217 3,948,200 11,434,335 36,459,745 Unassigned: 25,452,851 25,452,851 Total Fund Balance $ 64,659,587 38,478,571 5,327,396 16,246,524 25,604,904 26,793,949 44,085, ,196,432 50

60 (5) Capital Assets Notes to Basic Financial Statements December 31, 2011 Capital asset activity, for the year ended December 31, 2011, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets not being depreciated: Construction in Progress $ 25,241,014 11,182,158 (15,598,785) 20,824,387 Land 102,974,255 84,425 (69,956) 102,988,724 Total capital asset not being depreciated 128,215,269 11,266,583 (15,668,741) 123,813,111 Capital assets being depreciated: Buildings & Improvements $ 190,997,803 4,758, ,755,981 Equipment 66,332,323 3,054,214 (977,963) 68,408,574 Infrastructure 511,137,059 8,815, ,952,337 Total capital assets being depreciated 768,467,185 16,627,670 (977,963) 784,116,892 Less accumulated depreciation: Buildings & Improvements $ (59,411,882) (6,629,133) - (66,041,015) Equipment (50,509,025) (5,506,917) 944,518 (55,071,424) Infrastructure (208,060,377) (18,971,037) - (227,031,414) Total accumulated depreciation (317,981,284) (31,107,087) 944,518 (348,143,853) Total capital assets being depreciated, net 450,485,901 (14,479,417) (33,445) 435,973,039 Governmental activities capital assets, net $ 578,701,170 (3,212,834) (15,702,186) 559,786,150 Depreciation expense was charged to functions/programs of the County as follows: Governmental activities: General Government $ 1,889,402 Judicial 4,575 Public Safety 4,338,545 Highways and Streets 22,534,979 Sanitation 7,783 Health and Human Services 188,049 Culture and Recreation 2,020,190 Conservation of Natural Resources 110,191 Community Services (CSU Extension) 13,373 Total depreciation expense - Governmental Activities $ 31,107,087 51

61 (6) Risk Management Notes to Basic Financial Statements December 31, 2011 The County is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets; errors or omissions; injuries to employees; or acts of God. The County self insures for certain risks with commercial insurance for excess claims, or provides benefits to employees through commercial insurance with no risk of loss. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years for any risk areas noted below. (a) (b) (c) (d) Liability and Property Insurance The County began self-insuring for liability and property claims in All operating departments pay premiums into the Property and Liability Self-Insurance Internal Service Fund, and this funding is available to pay insurance premiums, claims, and claim reserves. The County s Risk Management Division administers the program. The self-insurance deductible per claim is $250,000 for liability claims, $25,000 for property claims, and $50,000 for auto physical damage. The County also has excess policies of $163,572,752 for real property, $9,040,600 for personal property, $7,690,907 for auto physical damage, $9,288,500 for data equipment and $3,046,598 contractor s equipment liability coverage. Claims of $81,576 were incurred and paid in 2011 with no significant outstanding liability at year-end. Unemployment Benefits The County self-insures unemployment benefits. Premiums are paid into the Employee Benefits internal service fund by all operating departments and are available to pay claims, claim reserves, and administrative costs. The program is administered by a third party. Claims of $159,992 were paid in 2011 with no significant outstanding liability at year-end. Short-Term Disability Benefits The County self-insures short-term disability benefits for employees. Premiums are paid into the Employee Benefits internal service fund by all operating departments. The County s Human Resources Department administers the program. Claims of $46,449 were incurred and paid in 2011 with no material outstanding liability at year-end. Workers Compensation Benefits The County began a self-insurance program for workers compensation benefits in Premiums are paid into the Employee Benefits internal service fund by all operating departments and are available to pay claims, claim reserves, and administrative costs. The County s Risk Management Division, with a third-party claim review service, administers the program. The self-insured deductible per claim is $400,000. The County has an excess policy with the statutory limits. Claims liabilities for 2011 were as follows: Claims liability, beginning of year $ 599, , ,187 Claims incurred 1,213,462 1,282, ,428 Claims paid (942,646) (1,137,461) (688,770) Claims liability, end of year $ 870, , ,845 52

62 Notes to Basic Financial Statements December 31, 2011 The claims liability at year-end represents the estimate of accrued claims incurred but not paid (actual costs have not yet been submitted to the County for payment). Department premiums are based primarily upon their claims experience and are reported as inter-fund services provided and used. (e) Medical, Dental, Vision and Life Insurance Benefits The County provides medical, dental, vision and life insurance benefits through commercial insurance, with no risk to the County. (7) Long Term Obligations (a) Changes in Long-Term Liabilities In 2011, the following changes occurred in long-term liabilities: Due in January 1 Additions Reductions December 31 One Year Bonds payable $ 49,665,000 3,850,000 45,815,000 3,940,000 Deferred premiums/discounts 983, , ,080 Loss on refunding (939,026) (104,336) (834,690) Total Bonded Debt 49,709,851 3,854,461 45,855,390 3,940,000 Compensated absences 4,798,511 4,737,427 4,403,105 5,132,833 4,609,799 Total $ 54,508,362 4,737,427 8,257,566 50,988,223 8,549,799 The County will liquidate compensated absences paid out in 2012 from the General (70%), Human Services (2%), Road and Bridge (8%), Law Enforcement Authority (19%), and Open Space, Parks and Trails (1%) funds. All other long term liabilities will be paid from the Debt Service Fund. (b) Revenue Bonds Total annual debt service requirements for bonded debt are as follows: Principal Interest Total Year: 2012 $ 3,940,000 1,633,969 5,573, ,035,000 1,523,010 5,558, ,145,000 1,407,807 5,552, ,260,000 1,288,358 5,548, ,390,000 1,155,958 5,545, ,215,000 3,368,778 24,583, ,830, ,800 4,010,800 $ 45,815,000 10,558,680 56,373,680 53

63 Notes to Basic Financial Statements December 31, 2011 Open Space and Parks Sales and Use Tax Revenue Bonds are issued by the County for the acquisition and preservation of open space lands, and for the design and construction of County parks and trails. These bonds are special revenue obligations, payable from and secured by the open space lands portion (approximately 66%) of the open space, parks, and trails-dedicated 17% of the County s 1% sales and use tax. Sales and use tax revenue of $7,184,378 less required intergovernmental sharebacks of $961,599 reported in the Open Space, Trails and Parks Fund are pledged revenues; thus Pledged Revenues of $6,222,779 were available to pay annual debt service of $3,949,207. The remaining debt service for these bonds at December 31, 2011 was $43,640,718. Road Improvement Sales and Use Tax Revenue Bonds are issued by the County for the purpose of providing funds for the improvement of County streets, roads and bridges. The bonds are special and limited obligations, payable solely out of and secured by an irrevocable assignment and pledge of certain sales and use tax revenues derived by the County. Sales tax revenues of $16,907,125 less required intergovernmental sharebacks of $5,696,472 reported in the Roads Sales and Use Tax Fund are pledged revenues; thus pledged revenues of $11,210,653 were available to pay annual debt service of $1,647,663. The remaining debt service for these bonds at December 31, 2011 was $12,732,962. Individual debt service schedules are as follows: Parks Sales and Use Tax Revenue Bonds, Series 2002 dated September 15, 2002 ($5,140,000) were issued by the County for the purpose of providing funds for the design and construction of County parks and trails. The bonds are special revenue obligations secured by the open space, parks, and trails pledged revenues. Interest is payable semiannually on April 15 and October 15 at rates increasing from 2% to 4.5% and bond principal is payable annually. Final maturity is Bond principal redeemed during the year was $235,000. The debt service to maturity is as follows: Parks Sales and Use Tax Revenue Bonds Principal Interest Total Year: 2012 $ 245, , , , , , , , , , , , ,000 95, , ,610, ,352 1,905, ,000 16, ,650 $ 3,290, ,709 4,179,709 54

64 Notes to Basic Financial Statements December 31, 2011 Open Space Sales and Use Tax Subordinate Revenue Bonds Series, 2002 dated October 1, 2002 ($17,805,000) were issued by the County for the acquisition and preservation of open space lands. Interest is payable semiannually on April 15 and October 15 at rates increasing from 3.00% to 4.75%, and bond principal is payable annually on October 15. Final maturity is Bond principal redeemed during the year was $625,000. The debt service to maturity is as follows: Open Spaces Sales and Use Tax Subordinate Revenue Bonds Principal Interest Total Year: 2012 $ 645, ,791 1,179, , ,506 1,183, , ,056 1,180, , ,044 1,180, , ,231 1,183, ,220,000 1,716,707 7,936, ,060, ,350 3,205,350 $ 12,745,000 4,303,685 17,048,685 Parks Sales and Use Tax Revenue Bonds, Series 2004, dated July 1, 2004 ($5,160,000) were issued by the County for the purpose of providing funds for the design and construction of County parks and trails. The bonds are special revenue obligations secured by open space, parks, and trails pledged revenue. Interest is payable semiannually on April 15 and October 15 at rates increasing from 2.50% to 4.70%, and bond principal is payable annually on October 15. Final maturity is Bond principal redeemed during the year was $250,000. The debt service to maturity is as follows: Parks Sales and Use Tax Revenue Bonds Principal Interest Total Year: 2012 $ 260, , , , , , , , , , , , , , , ,750, ,057 2,088, ,000 18, ,800 $ 3,555,000 1,020,750 4,575,750 55

65 Notes to Basic Financial Statements December 31, 2011 Open Space Sales and Use Tax Revenue Refunding Bonds, Series 2009 dated May 28, 2009 ($18,010,000) were issued by the County for the purposes of 1) reducing the net effective interest rate, 2) reducing the total principal and interest payable and 3) creating a present value savings for the County on the obligations represented by the advance refunding of the Open Space Sales and Use Tax Revenue Bonds series 1999 and series The bonds are special revenue obligations secured by the Open Space, Trails and Parks Fund pledged revenues. Interest is payable semiannually on April 15 and October 15 at rates increasing from 2.5% to 4.0%, and bond principal is payable annually on October 15. Final maturity is Bond principal redeemed during the year was $1,450,000. The debt service to maturity is as follows: Open Space Sales and Use Tax Revenue Bonds Principal Interest Total Year: 2012 $ 1,490, ,013 1,982, ,530, ,313 1,977, ,580, ,412 1,981, ,625, ,962 1,982, ,675, ,212 1,984, ,250, ,662 7,928,662 $ 15,150,000 2,686,574 17,836,574 Road Improvement Sales and Use Tax Revenue Bonds, Series 2010 dated April 28, 2010 ($13,770,000) were issued by the County for the purpose of providing funds for the improvement of County streets, roads and bridges. The bonds are special and limited obligations of the County, payable solely from and secured by an irrevocable pledge of certain sales and use tax revenues derived by the County; as a result all sales tax revenue reported in the Roads Sales and Use Tax Fund are pledged revenues. Interest is payable semiannually on April 15 and October 15 at rates increasing from 2.0% to 4.0%, and bond principal is payable annually on October 15. Final maturity is Bond principal redeemed during the year was $1,290,000. The debt service to maturity is as follows: Road Sales and Use Tax Revenue Bonds Principal Interest Total Year: 2012 $ 1,300, ,962 1,618, ,315, ,963 1,607, ,335, ,662 1,601, ,355, ,625 1,591, ,385, ,750 1,587, ,385, ,000 4,725,000 $ 11,075,000 1,657,962 12,732,962 56

66 (c) Conduit Debt Obligations Notes to Basic Financial Statements December 31, 2011 The County issued several bonds to make roadway and utility improvements upon petition by the property owners in the local improvement districts. As of December 31, 2011, $1,086,017 was outstanding. The bonds are special and limited obligations, payable solely from the special assessments levied and to be levied against the assessable land in the districts. The County is not obligated in any manner with respect to these bonds; therefore, the debt is not reported as a liability in the financial statements. The County Treasurer acts as trustee for the bonds, and the balance of bond reserves, special assessments collected, and interest earned is reported in the Treasurer s agency fund as deposits held for others. The County has participated in two issues of Multifamily Housing Revenue Bonds for the Lincolnpointe Lofts Project, Series 2003 and Series As of December 31, 2011, Series 2003 had an outstanding principal amount of $8,814,613, and Series 2006 had an outstanding principal amount of $5,899,510. These bonds are not direct or contingent liabilities of the County. (d) Extinguishment of Debt On December 15 th, 2010 the County used available cash in the amount of $4,715,422 to establish an irrevocable escrow account in order to pay the remaining principal and interest on the outstanding 2005 Certificates of Participation. The County directed the Escrow Agent to purchase United States Treasury State and Local Government Series Certificates to be placed in escrow and used to pay principal and interest, on their respective due dates, resulting in a total outstanding extinguishment of $4,071,363 as of December 31, Outstanding principal remaining is $3,705,000. Accordingly, the trust account assets and the liability for the extinguished Certificates of Participation are not included in the County s financial statements and the debt is considered extinguished. 57

67 (8) Retirement Plan Benefits Notes to Basic Financial Statements December 31, 2011 The County participates in the ICMA-RC retirement association a multiple-employer public employee retirement system that is a qualified plan as defined by IRS Code Section 401(A) and Colorado Revised Statutes (CRS) The plan provides retirement benefits through a defined contribution plan to participating counties, municipalities, and special districts. In a defined contribution plan, benefits depend solely on amounts contributed to the plan, plus investment earnings. There are no unfunded past service liabilities. All full-time and part-time regular employees, other than the County Manager and the County Attorney who have a separate plan, are required to participate in the plan after one month of service. Employees may elect to contribute either 6% or 8% of their earnings, and may contribute up to an additional 10% of after-tax compensation. The County matches the employee s contribution of 6 or 8% of employee compensation, excluding overtime and bonuses. The County and its employees each made the required 6% or 8% contribution for a total amount of $8,653,218 in Depending on the employee s 401(A) election, the County also provides an additional contribution to the employee s retirement plan. For employees who elect to contribute 6% of their earnings, the County will provide a 2% additional contribution. Of this 2%, 1% is added to employees salaries and then immediately deducted and matched with an additional 1% by the County. The County s contributions to this plan were $525,647. The County s contribution for each employee, including earnings thereon, vests at 20% for each year upon completion of the employee s second year of employment. Non-vested County contributions and earnings are forfeited when employees terminate their employment with the County. The required contribution rates may be amended within the statutory limits by the Board of County Commissioners. The retirement plan of the County Manager and the County Attorney is also a multiple-employer employee retirement system administered through ICMA-RC. This is a qualified plan as defined by IRS Code Section 401(A). This plan provides retirement benefits through a defined contribution plan in which the benefits depend solely on amounts contributed to the plan, plus investment earnings. There is no liability for benefits under the plan beyond the County s matching contribution. These employees contribute 8% of compensation that is matched by the County. Required contribution rates may be amended by the Board of County Commissioners. The employee and County contributions to this plan in 2011 were $26,118 for the County Manager, $24,502 for the County Attorney for a total of $50,620. The employees covered under this plan are fully vested. 58

68 (9) Inter-fund Transfers Notes to Basic Financial Statements December 31, 2011 The following transfers occurred between funds for 2011: Transfers out General Road and Road Justice Center Fund Bridge Fund S & U Tax S & U Tax Transfers in: General Fund $ - 1,200, ,000 8,700,932 Road & Bridge Justice Center Sales &Use Tax 683,000 Nonmajor Governmental - - 1,647,663 - Transfers out: $ 683,000 1,200,000 2,147,663 8,700,932 Human Nonmajor Services Governmental Total Transfers in: General Fund $ - 250,000 10,650,932 Road & Bridge - 1,140,000 1,140,000 Justice Center Sales &Use Tax ,000 Nonmajor Governmental 8,000 5,094,803 6,750,466 Transfers out: $ 8,000 6,484,803 19,224,398 Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them; to move receipts restricted to debt service from the funds collecting the receipts to the funds making the debt service payments as payments become due; and use unrestricted revenues collected in funds to finance various programs accounted for in other funds in accordance with budgetary authorizations. The Road and Bridge Fund and the Road Sales and Use Tax Fund transfers to the General Fund are used to reimburse the General Fund for engineering services. The Justice Center Sales and Use Tax Fund transfer to the General Fund is used provide for the operational and maintenance costs related to the County s Robert Christensen Justice Center as stated in the ballot language. Other major fund transfers include amounts transferred for debt service requirements and capital replacements. 59

69 (10) Commitments and Contingencies Notes to Basic Financial Statements December 31, 2011 (a) Grants Under the terms of federal and state grants, certain costs may be questioned as not being appropriate expenditures based upon audits performed by federal and state entities, which could lead to reimbursement to the grantor agencies. County management believes disallowances, if any, will be immaterial. The Community Development Block Grant in working with the communities in Douglas County to provide assistance to low and moderate-income persons in the areas of housing, economic opportunity, and services, such as transportation continually provides funding to various organizations. (b) (c) Litigation As of December 31, 2011, there were a number of pending claims and lawsuits involving the County. The outcome of these matters is currently unknown; however, the County s legal counsel has reviewed all such litigation and claims and is of the opinion that any outstanding claims not covered by insurance would not materially affect the County s financial position. Encumbrances and Construction Commitments As of December 31, 2011 the County has encumbered amounts that they intend to honor in the subsequent year for the following major governmental funds: General Fund $ 1,866,186 Road and Bridge Fund 2,593,463 Human Services Fund 160,737 Law Enforcement Authority 94,036 Road Sales and Use Tax 1,415,358 Justice Center Sales and Use Tax 1,740,155 $ 7,869,935 The following construction commitment is included in the encumbrances listed above: $ 450,000 related to the Hess Road Project. 60

70 (11) Related Party Transactions Notes to Basic Financial Statements December 31, 2011 The County Commissioners are on the boards of various organizations in the region, including the Arapahoe County Public Airport Authority, Arapahoe/Douglas Workforce Development Board, Castle Rock Economic Development Council, Centennial Airport Community Noise Roundtable, Chatfield Watershed Authority, Cherry Creek Basin Water Quality Control Authority, Cherry Creek Basin Working Group, Colorado Counties, Inc. (CCI), CCI Front Range District, Denver Regional Council of Governments (DRCOG), DRCOG Metro Vision 2035, Douglas County Authority, Developmental Pathways, Inc., Douglas County Fair Association, Douglas County Housing Partnership, Douglas County Water Resources Authority, Douglas County Youth Initiative, E-470 Public Highway Authority, Lamb Spring Archeological Preserve Board, Local Emergency Planning Committee, Metro Area County Commissioners, National Association of Counties (NACo), Greater Parker Economic Development Council, Partnership of Douglas County Governments, Progressive 15, Rural Water Authority of Douglas County, Rural Water Supply Act Work Group, Southeast Business Partnership (SEBP), South I-25 Urban Corridor Transportation Management Authority, and the Urban Drainage Flood Control District. The County made payments of the following amounts to these organizations in 2011: Related-Party Transactions Arapahoe/Douglas Workforce Development Board $46,000 Castle Rock Economic Development Council 20,100 Chatfield Watershed Authority 35,000 Cherry Creek Basin Water Quality Control Authority 36,333 CCI 50,206 DRCOG 145,180 Developmental Pathways 4,613,176 Douglas County Fair Association 40,765 Douglas County Housing Partnership 219,951 Douglas County Water Resources Authority 66,100 Douglas County Youth Initiative 40,000 E-470 Public Highway Authority 2,112,262 Greater Parker Business Alliance 22,400 NACo 2,178 Progressive 15 2,000 Rural Water Authority of Douglas County 100,000 South I25 Urban Corridor Transportation Management Auth. 20,096 South East Business Partnership 50,570 Urban Drainage Flood Control District 1,210,020 Total $8,832,337 The County Treasurer is on the board of directors for the Colorado Surplus Asset Fund Trust (CSAFE). The County had $5,174,955 invested with CSAFE as of December 31,

71 (12) Tax, Spending and Debt Limitations Notes to Basic Financial Statements December 31, 2011 In November 1992, Colorado voters passed an amendment (Amendment One or TABOR amendment) to the State Constitution (Article X, Section 20) that limits the revenue-raising and spending abilities of state and local governments. The limits on property taxes, revenue, and fiscal year spending include allowable annual increases tied to inflation and local growth in construction valuation. Fiscal year spending as defined by the amendment excludes spending from certain revenue and financing sources such as federal funds, gifts, property sales, fund transfers, damage awards, and fund reserves (balances). The amendment requires voter approval for any increase in mill levy or tax rates, new taxes, or creation of multi-year debt. Revenue earned in excess of the spending limit must be refunded, or the entire electorate must approve retention under specified voting requirements. The amendment also requires that reserves equal to 3% of fiscal year spending be established for declared emergencies. In November 1997, Douglas County voters passed a ballot measure allowing the County and the Law Enforcement Authority, with no increase in any tax rate or mill levy, to retain and spend all revenues and other funds received from any source. This applied to all subsequent years without further voter approval. Based on estimated spending for fiscal year 2011, $5,250,000 of the General Fund balance, $550,000 of the Law Enforcement Authority Fund balance and $750 of the Woodmoor Mountain General Improvement District fund balance have been reserved to meet the emergency reserve required under the TABOR amendment. The combined amount of restricted net assets in the government wide statements for this reserve requirement is $5,800,750. (13) Excess of Expenditures over Appropriation The expenditures of the Employee Benefits Internal Service fund exceeded appropriations by $15,224 due to larger than expected worker s compensation payouts in the fourth quarter of

72 63

73 REQUIRED SUPPLEMENTARY INFORMATION (Other than Management s Discussion and Analysis) 64

74 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget General Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Taxes: General property $ 66,233,115 66,233,115 67,671,769 1,438,654 Penalty and interest 197, , ,815 (45,527) Total taxes 66,430,457 66,430,457 67,823,584 1,393,127 Licenses and permits: Business licenses and permits 2,034,100 2,034,100 2,035,312 1,212 Nonbusiness licenses and permits: Building and sign permits 1,998,500 1,998,500 2,932, ,082 Highway and street permits 1,200 1,200 2,760 1,560 Total licenses and permits 4,033,800 4,033,800 4,970, ,854 Intergovernmental: Federal grants and cost reimbursement 3,283,404 5,347,393 3,633,263 (1,714,130) State grants and cost reimbursement 1, , ,357 (19,897) State shared revenues 225, , ,346 45,346 Other governmental units 162, , , ,306 Total intergovernmental 3,672,104 6,131,962 5,041,587 (1,090,375) Charges for services: General government: Clerk and recorder s fees 4,912,500 4,912,500 5,750, ,785 Treasurer s fees 4,534,500 4,534,500 4,753, ,008 Assessor s fees 20,000 20,000 8,756 (11,244) Public trustee s fees 135, ,758 Building, zoning, development fees 779, ,600 1,478, ,470 Other fees and charges 95, , ,288 7,858 Public safety: Sheriff s fees 254, , ,388 15,500 Other fees and charges 1,703,800 1,708,200 2,255, ,332 Sanitation waste collection charges 6,000 6,000 6, Culture and recreation participation fees 708, , ,287 (55,713) Total charges for services 13,013,830 13,085,118 15,480,068 2,394,950 Fines and forfeitures 179, , ,986 27,586 Interest on investments 1,500,000 1,500,000 1,330,089 (169,911) Miscellaneous: Refunds and reimbursements 260, ,167 1,044, ,911 Donations, rents, and other 2,000 2,000 Contributions and private grants 207, , ,055 91,555 Other 360, , ,155 (250,942) Total miscellaneous 828,500 1,458,764 1,741, ,524 Total revenues 89,658,091 92,819,501 96,594,256 3,774,755 Expenditures: General government current operating Commissioners: Office of the board 600, , , ,563 County attorney 1,149,829 1,199,829 1,162,201 37,628 Board of equalization 21,620 49,620 51,818 (2,198) County administration 854, , ,524 (4,005) Public affairs 924,374 1,008, ,492 53,565 Central services 108, , ,597 8,232 Total commissioners 3,658,743 4,078,051 3,772, , (Continued)

75 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget General Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Clerk and recorder: Clerk administration $ 498, , ,134 6,052 Recording 617, , ,499 1,090 Motor vehicle 1,949,628 2,010,628 1,993,347 17,281 Elections and registration 1,161,627 1,125,427 1,107,702 17,725 Drivers license 109, , ,877 12,145 Total clerk and recorder 4,336,173 4,422,852 4,368,559 54,293 Treasurer: Treasurer administration 1,128,845 1,024, ,954 32,891 Total treasurer 1,128,845 1,024, ,954 32,891 Assessor: Administration 1,487,539 1,420,834 1,402,960 17,874 Appraisal 1,988,915 2,058,120 2,043,798 14,322 Total assessor 3,476,454 3,478,954 3,446,758 32,196 Community planning and sustainable development (CPSD): Administration 1,504,747 1,919,055 1,636, ,502 Planning 2,409,834 2,866,910 2,407, ,975 Planning commission 9,895 9,295 9, Building 2,894,370 2,797,612 2,776,307 21,305 Community Services 1,556 1,556 Total CPSD 6,818,846 7,594,428 6,829, ,530 Finance: Administration 228, , , Accounting 358, , , Budget 484, , ,429 1,039 Payroll 153, , , Purchasing 186, , , Risk management 127, , ,597 1,447 Total finance 1,538,852 1,558,121 1,553,497 4,624 Human resources 547, , ,148 2,167 Information technology: IT administration 1,155,918 1,461,795 1,133, ,020 IT program management 659, , ,564 8,378 IT networking 509, , ,157 18,050 IT ADS 1,774,988 1,711,988 1,694,779 17,209 IT system support 507,072 1,075,592 1,040,406 35,186 IT system administration 1,188,769 1,325,861 1,346,467 (20,606) GIS services 676, , ,824 19,155 Phone / communications 331, , ,019 11,956 Software maintenance 1,260,943 1,509,805 1,060, ,771 Total information technology 8,065,564 9,161,144 8,294, ,119 Facilities maintenance 5,877,412 6,243,467 6,055, ,659 County surveyor 6,775 8,274 8,269 5 General fund administration 1,325,069 2,882,680 3,075,518 (192,838) Intergovernmental-regional boards 151, , , Total general government 36,931,612 41,209,631 39,150,489 2,059,142 Judicial current operating: District attorney 6,254,475 6,170,953 6,170,953 Community justice services 1,270,271 1,260,271 1,229,995 30,276 Total judicial 7,524,746 7,431,224 7,400,948 30, (Continued)

76 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget General Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Public safety current operating: Sheriff: Administration $ 2,496,941 2,735,674 2,623, ,989 Support services 6,450,551 6,597,944 6,324, ,535 Detentions 14,518,230 14,654,929 14,136, ,032 Patrol 379, , ,817 11,713 Investigations 6,479,747 7,095,121 6,811, ,333 Total sheriff 30,324,699 31,471,198 30,272,596 1,198,602 Coroner 1,329,357 1,151,125 1,128,733 22,392 Weed control 369, , ,652 31,906 Total public safety 32,023,324 33,022,881 31,769,981 1,252,900 Highway and streets current operating: Public works administration 260, , , Engineering 5,205,508 5,697,573 6,030,399 (332,826) Total highway and streets 5,466,396 5,949,610 6,282,360 (332,750) Sanitation current operating: 84,725 72,600 68,849 3,751 Health and human services current operating: Tri-county health 1,946,605 1,946,605 1,946,605 Other health services 207, , ,054 7,241 Senior services 50, , ,527 78,122 Veterans services 21,055 24,208 23,144 1,064 Total health and human services 2,225,267 2,476,757 2,390,330 86,427 Culture and recreation current operating: Parks administration and maintenance 2,181,583 2,272,822 2,252,711 20,111 Regional parks 147, ,091 45, ,805 Fairgrounds 1,167,446 1,107,603 1,079,225 28,378 Historic preservation board 34,900 65,909 59,503 6,406 Total culture and recreation 3,531,020 3,593,425 3,436, ,700 Conservation of natural resources current operating: Natural resources 405, , ,283 44,086 Soil conservation district 36,750 36,750 36,750 Total conservation of natural resources 442, , ,033 44,086 Economic development and assistance 456, , ,648 8,586 Community services current operating: CSU extension 311, , ,269 2,609 Total community services 311, , ,269 2,609 Total current operating 88,997,079 95,028,359 91,716,632 3,311, (Continued)

77 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget General Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Capital outlay $ 1,235,000 4,856,075 1,852,567 3,003,508 Contingency 1,000,000 1,759,122 1,759,122 Total expenditures 91,232, ,643,556 93,569,199 8,074,357 Excess (deficiency) of revenues over expenditures (1,573,988) (8,824,055) 3,025,057 11,849,112 Other financing sources (uses): Sale of capital assets 48,552 48,552 Transfers in 9,583,877 10,622,147 10,650,932 28,785 Transfers out (683,000) (683,000) Total other financing sources (uses) 9,583,877 9,939,147 10,016,484 77,337 Net change in Fund Balance $ 8,009,889 1,115,092 13,041,541 11,926,449 Fund balance, January 1 51,618,046 Fund balance, December 31 $ 64,659,587 See accompanying independent auditors report. 68

78 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Road and Bridge Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Taxes: General property $ 21,309,548 21,309,548 21,763, ,666 Specific ownership 6,600,000 6,600,000 6,421,179 (178,821) Penalty and interest 63,316 63,316 48,797 (14,519) Total taxes 27,972,864 27,972,864 28,233, ,326 Licenses and permits 250, , ,971 31,971 Intergovernmental: Federal grants/reimbursements 202, ,778 1,017, ,967 Federal shared revenue 10,000 10,000 82,888 72,888 State grants/reimbursements 134, ,294 State shared revenue 6,625,000 6,625,000 7,531, ,253 Other government units reimbursements 203, , ,520 Total intergovernmental 6,837,300 7,754,866 9,360,788 1,605,922 Charges for services 85,000 85,000 82,737 (2,263) Interest on investments 5,490 5,490 Miscellaneous: Refunds and reimbursements 4,068 16,330 12,262 Contributions, private, and property owners Other 8,000 8,000 11,043 3,043 Total miscellaneous 8,000 12,068 27,913 15,845 Total revenues 35,153,164 36,074,798 37,992,089 1,917,291 Expenditures: Highways and streets current operating: Highway administration 714, , ,172 36,806 Maintenance of infrastructure 8,846,529 9,538,407 8,932, ,027 Snow and ice removal 926,660 1,135,103 1,645,653 (510,550) Traffic services 2,752,541 2,670,382 2,630,514 39,868 Highway equipment maintenance 3,063,525 2,500,483 1,446,514 1,053,969 Roads, bridges and traffic 5,546,266 5,316,348 9,049,341 (3,732,993) Total highways and streets operating 21,849,633 21,943,701 24,450,574 (2,506,873) Intergovernmental: Tax shareback 4,264,468 4,264,468 4,165,128 99,340 Cities, towns, and counties 78,028 (78,028) Total intergovernmental 4,264,468 4,264,468 4,243,156 21,312 Current operating 26,114,101 26,208,169 28,693,730 (2,485,561) Capital outlay 13,387,159 17,421,396 1,170,707 16,250,689 Total highways and streets 39,501,260 43,629,565 29,864,437 13,765,128 Contingency 302, , ,545 Total expenditures 39,803,260 43,807,110 29,864,437 13,942,673 Excess (deficiency) of revenues over expenditures (4,650,096) (7,732,312) 8,127,652 15,859, (Continued)

79 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Road and Bridge Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Other financing sources (uses): Sale of capital assets $ 32,328 32,328 Transfers in 1,140,000 1,140,000 1,140,000 Transfers out (1,200,000) (1,200,000) (1,200,000) Total other financing sources (uses) (60,000) (60,000) (27,672) 32,328 Net change in Fund Balance $ (4,710,096) (7,792,312) 8,099,980 15,892,292 Fund balance, January 1 30,378,591 Fund balance, December 31 $ 38,478,571 See accompanying independent auditors report. 70

80 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Human Services Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Taxes: General property $ 1,498,736 1,498,736 1,531,174 32,438 Penalty and interest 4,452 4,452 3,431 (1,021) Total taxes 1,503,188 1,503,188 1,534,605 31,417 Intergovernmental: Federal grants 227, ,601 (86,726) Federal grants/reimbursements 16,654,732 16,659,731 14,698,615 (1,961,116) State grants/reimbursements 9,204,488 9,426,581 5,553,647 (3,872,934) Total intergovernmental 25,859,220 26,313,639 20,392,863 (5,920,776) Miscellaneous refunds and reimbursements 20,700 20, , ,329 Total revenues 27,383,108 27,837,527 22,349,497 (5,488,030) Expenditures: Human Services-administration, current operating 1,142,560 1,205,512 1,033, ,294 Human Services-direct aid and programs: Current operating Core services 340, , ,549 95,074 Colorado Works/TANF block 908, , , ,676 Child welfare block 4,502,595 4,901,828 4,771, ,001 Child care block 2,307,325 2,362,548 1,970, ,069 Child Support Enforcements 604, , ,079 19,977 Low Income Energy Assistance Program 840, , , ,106 Other non-block grant programs 16,727,958 16,301,030 11,743,450 4,557,580 Total direct aid and programs 26,231,702 26,623,169 20,926,686 5,696,483 Total current expenditures 27,374,262 27,828,681 21,959,904 5,868,777 Contingency Total expenditures 27,374,262 27,828,681 21,959,904 5,868,777 Excess (deficiency) of revenues over expenditures 8,846 8, , ,747 Other financing sources (uses) Transfer Out (8,000) (8,000) (8,000) Total other financing sources (uses) (8,000) (8,000) (8,000) Net change in Fund Balance $ , ,747 Fund balance, January 1 4,945,803 Fund balance, December 31 $ 5,327,396 See accompanying independent auditors' report 71

81 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Law Enforcement Authority Fund Year ended December 31, Budgeted Original Final Actual Variance Revenues: Taxes: General property $ 13,064,052 13,064,052 13,347, ,261 Specific ownership 1,000,000 1,000, ,168 (106,832) Penalty and interest 32,423 32,423 25,618 (6,805) Total taxes 14,096,475 14,096,475 14,266, ,624 Intergovernmental: Federal grants 58,978 22,504 (36,474) Federal cost reimbursement 12,625 12,625 State grants 18,700 18,513 (187) Other government units 1,136, , ,637 18,562 Total intergovernmental 1,136, , ,279 (5,474) Charges for services 557,200 1,388,200 1,673, ,595 Fines and forfeits 1,134,000 1,134,000 1,290, ,041 Interest on investments 123, , ,705 82,505 Miscellaneous refunds and contributions 53,700 91,046 94,892 3,846 Total revenues 17,101,270 17,317,674 18,009, ,137 Expenditures: Public safety current operating: LEA administration 249, , ,890 20,121 LEA Support Services 371, , ,563 33,703 LEA Patrol 13,940,696 14,061,272 13,586, ,105 Total public safety 14,561,843 14,925,549 14,396, ,929 Capital outlay 665, , ,657 56,790 Contingency 400, , ,200 Total expenditures 15,626,843 15,965,196 15,116, ,919 Excess (deficiency) of revenues over expenditures 1,474,427 1,352,478 2,893,534 1,541,056 Other financing sources: Sale of capital assets 49,567 49,567 Net changes in Fund Balance $ 1,474,427 1,352,478 2,943,101 1,590,623 Fund balance, January 1 13,303,423 Fund balance, December 31 $ 16,246,524 See accompanying independent auditors report. 72

82 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Road Sales and Use Tax Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Sales and use taxes $ 14,894,000 14,894,000 16,907,125 2,013,125 Intergovernmental: State grants/reimbursements 11,401 11,401 Other government reimbursements 303, ,520 Total intergovernmental 314, ,921 Interest on investments 241, , ,369 60,369 Total revenues 15,135,000 15,135,000 17,523,415 2,388,415 Expenditures: Highways and streets: Fund administration 30,885 (30,885) Bridges, roads and traffic 5,490,977 5,397,163 5,198, ,708 Intergovernmental - shareback 6,698,386 6,698,386 5,696,473 1,001,913 Total highway and streets 12,189,363 12,095,549 10,925,813 1,169,736 Capital outlay 19,987,232 20,778,352 7,449,802 13,328,550 Total expenditures 32,176,595 32,873,901 18,375,615 14,498,286 Excess (deficiency) of revenues over expenses (17,041,595) (17,738,901) (852,200) 16,886,701 Other financing sources/(uses): Transfers out (2,151,500) (2,151,500) (2,147,663) 3,837 Total other financing sources/(uses) (2,151,500) (2,151,500) (2,147,663) 3,837 Net change in Fund Balance $ (19,193,095) (19,890,401) (2,999,863) 16,890,538 Fund balance, January 1 28,604,767 Fund balance, December 31 $ 25,604,904 See accompanying independent auditors report. 73

83 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Justice Center Sales and Use Tax Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Sales and use tax $ 16,011,050 16,011,050 18,172,251 2,161,201 Interest on investments 252, , ,552 4,242 Miscellaneous revenues 4,580 4,580 Total revenues 16,263,360 16,263,360 18,433,383 2,170,023 Expenditures: Public Safety Fund administration 662,798 1,047,572 1,155,330 (107,758) Capital outlay 1,514,400 7,093,693 1,709,249 5,384,444 Contingency 250,000 24,386 24,386 Total expenditures 2,427,198 8,165,651 2,864,579 5,301,072 Excess (deficiency) of revenues over expenditures 13,836,162 8,097,709 15,568,804 7,471,095 Other financing sources (uses): Sale of capital assets 15,000 15,000 Transfers in 683, ,000 Transfers out (7,633,877) (8,672,147) (8,700,932) (28,785) Total other financing sources (uses) (7,633,877) (7,989,147) (8,002,932) (13,785) Net change in Fund Balance $ 6,202, ,562 7,565,872 7,457,310 Fund balance, January 1 19,228,077 Fund balance, December 31 $ 26,793,949 See accompanying independent auditors report. 74

84 Notes to the Required Supplementary Information December 31, 2011 BUDGETARY INFORMATION Annual budgets for all funds are adopted on a basis consistent with the following procedures, which are statutorily defined in the local government budget law: Colorado Revised Statutes (CRS); Title 29; Article 1, Budget and Services; part 1, Local Government Budget law of Colorado. Budgets are required, and adopted, for all County governmental and proprietary funds except the Sheriffs Forfeiture Fund (a special revenue fund), which is exempt by State statute from the budget and appropriation process. Each County department (spending authority) annually submits to the Finance Department its projected revenue and estimated expenditures for the subsequent fiscal year. These estimates and requests are reviewed against the County s available financing resources to develop a countywide proposed budget On or before October 15, the County Manager submits the proposed budget for the fiscal year commencing the following January 1 to the Board of County Commissioners. The proposed budget must be balanced, meaning that available revenues or other financing sources combined with available unrestricted beginning fund balances must be equal to or greater than the proposed expenditures. Subsequent to published notice of the proposed budget s availability for inspection, public hearings are conducted by the Commissioners to obtain taxpayer comments. Prior to December 15, the Board of County Commissioners passes and approves formal resolutions to adopt the budgets, certify and levy taxes, and appropriate funds for the County, the Douglas County Law Enforcement Authority, the Woodmoor Mountain General Improvement District and the Lincoln Station Local Improvement District. Budgets for all funds are adopted on the basis consistent with US GAAP. All appropriations lapse at year-end unless formally encumbered by a purchase order or other formal commitment open and available at year-end. Legal Compliance: In accordance with Colorado law, budgets are adopted and appropriations are authorized by fund. The County Manager must approve any request to reallocate appropriations within a fund that is legally a part of the County organization; however, a formal resolution amending the budget is not required. Any increases or decreases to the adopted and appropriated budget at the fund level require that an amended or supplemental budget appropriation be approved by the Board of County Commissioners through formal resolution at a public meeting, with prior published notice of the proposed changes. The exception is that the Board of County Commissioners may increase a fund s spending authority appropriation through a reallocation from the fund s contingency appropriation without formal resolution. 75

85 SUPPLEMENTAL INFORMATION 76

86 Special Revenue Funds NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds account for the proceeds of specific revenue sources (other than expendable trusts or for major capital projects) that are legally restricted to expenditures for specified purposes. Sheriff s Forfeiture Fund This fund is used to account for the proceeds from the seizure and/or forfeiture of contraband under the Colorado Contraband Forfeiture Act. These funds must be used for the specific purpose of law enforcement activities. While these proceeds are subject to the Local Government Audit Law, they are exempt from the budget and appropriation process. Developmental Disabilities Fund This fund is used to account for revenues derived from a 1 mill property tax approved by the voters in November 2001 designated to be used in providing services for Douglas County citizens with developmental disabilities. Open Space, Trails and Parks Fund The Open Space, Trails and Parks Fund accounts for revenues received from the 0.17% sales and use tax approved by the voters in 1994 for the acquisition, development, and maintenance of open space, trails, and parks. The three wholly incorporated municipalities of Castle Rock, Parker and Larkspur located within the County share these revenues. Parks Sales and Use Tax Fund The Parks Sales and Use Tax Fund shares a portion of the revenues received from the 0.17% open space, trails, and parks sales and use tax approved by the voters in 1994 for the acquisition, development, and maintenance of open space, trails, and parks. Conservation Trust Fund This fund is used to account for revenues received from the State lottery fund specifically designated to be used for the acquisition, development, and maintenance of parks, recreation facilities and trail systems located within the County. Lincoln Station Local Improvement District (LID) Fund This fund is used to account for the revenues derived from the collection of the sales taxes (the LID Sales Taxes ), and will thereafter remit the LID Sales Taxes to the District to fund the Improvements. Solid Waste Fund This fund is used to account for the revenues derived from a service charge collected by the operators of solid waste disposal sites and facilities or transfer stations located within unincorporated Douglas County. Woodmoor Mountain General Improvement District (GID) Fund This fund is used to account for the revenues derived from a designated property tax levied by the Woodmoor Mountain General Improvement District (GID), a special taxing district, and designated for the improvement and maintenance of roads located within that District. 77

87 Debt Service Fund This fund is used to account for the debt service activities related to the County s outstanding revenue bonds. Capital Projects Funds Capital Projects funds account for the financial resources used to acquire or construct major public capital facilities and improvements. Capital Expenditures Fund This fund is used to account for the construction, improvement, and/or purchase of public facilities, including land, buildings, equipment, and furnishings. Local Improvement District (LID) Capital Construction Fund This fund is used to account for road improvements located within various Local Improvement Districts (LID's). Funding for these improvements is provided from special assessments levied against the properties located within the LID with some assistance from general governmental revenues of the County. Growth Construction Fund Law Enforcement Authority (LEA) This fund is used to account for the accumulation of legislatively enabled early-assessment property taxes derived from new construction within the Law Enforcement Authority (LEA) District which is designated to be used for capital expenditures and not for operating expenses. Capital Replacement Fund This fund is used to account for the accumulation of funds generated from interfund transfers to be used in the scheduled replacement of County vehicles and other capital equipment. 78

88 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2011 Open Space, Parks Sheriff s Developmental Trails and Sales and Assets Forfeiture Disabilities Parks Use Tax Equity in treasurer s cash and investments $ 177, ,033 12,187,670 2,959,164 Property taxes receivable 4,450,071 Accounts receivable 28,896 3,009 1,168,342 1,393 Total assets $ 206,539 4,932,113 13,356,012 2,960,557 Liabilities and Fund Balance Liabilities: Accounts payable $ 38, Retainage payable Accrued liabilities 19,700 Security deposits/unearned revenue 1,000 Payable to other governments 2,864,280 Deferred revenues 4,433,888 Total liabilities 4,433,888 2,923, Fund balance: Restricted 100,000 2,428,325 Committed Assigned 206, ,225 8,003,894 2,960,332 Total fund balance 206, ,225 10,432,219 2,960,332 Total liabilities and fund balance $ 206,539 4,932,113 13,356,012 2,960,557 See accompanying independent auditors report (Continued) 79

89 Woodmoor Total Conservation Lincoln Station Solid Waste Mountain Special Trust L.I.D. Disposal G.I.D. Revenue Funds 1,182, ,039 22,893 17,249,516 18,935 4,469,006 1,080 6,615 1,209,335 1,182,074 1, ,654 41,828 22,927, ,782 1,080 1,507 19, ,541 57,174 57,174 19,700 1,000 2,864,280 4,433, ,956 1,080 1,507 19,134 7,633, ,529, , , , ,147 21,944 12,652, , ,147 22,694 15,294,274 1,182,074 1, ,654 41,828 22,927,857 (Continued) 80

90 Combining Balance Sheet Nonmajor Governmental Funds December 31, 2011 Total Debt Debt Service Capital Assets Service Funds Expenditures Equity in treasurer s cash and investments $ 96,300 96,300 5,336,817 Property taxes receivable ,539 Accounts receivable Total assets $ 96,710 96,710 5,341,356 Liabilities and Fund Balance Liabilities: Accounts payable $ ,965 Retainage payable Accrued liabilities Security deposits/unearned revenue Payable to other governments Deferred revenues Total liabilities ,965 Fund balance: Restricted Committed Assigned 96,585 96,585 5,264,391 Total fund balance 96,585 96,585 5,264,391 Total liabilities and fund balance $ 96,710 96,710 5,341,356 (Continued) 81

91 Growth Construction Law Total Nonmajor L.I.D. Total Capital Enforcement Capital Capital Governmental Construction Authority Replacement Projects Funds Funds 446, ,451 22,419,391 28,775,345 46,121,161 4,539 4,473,955 1,209, , ,451 22,419,391 28,779,884 51,804,451 8,277 85, ,908 57,174 19,700 1,000 2,864,280 4,433,888 8,277 85,242 7,718,950 2,529, , , ,174 22,419,391 28,694,642 41,443, , ,174 22,419,391 28,694,642 44,085, , ,451 22,419,391 28,779,884 51,804,451 82

92 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year ended December 31, 2011 Open Space, Parks Sheriff s Developmental Trails and Sales and Forfeiture Disabilities Parks Use Tax Revenues: Taxes $ 4,856,770 7,184,378 Intergovernmental 14,590 Charges for services 82,183 Fines and forfeits 7,210 Interest on investments ,035 28,310 Donations, rents, reimbursements, other 67,971 Total revenues 7,316 4,856,770 7,386, ,083 Expenditures: Current operating: General government Public safety 36,138 Highways and streets Culture and recreation 2,126,859 7,799 Developmental disabilities 4,942,046 Total current operating 36,138 4,942,046 2,126,859 7,799 Capital outlay 30,220 7,815 8,385 Debt service: Principal Interest and fiscal charges Total debt service Total expenditures 66,358 4,942,046 2,134,674 16,184 Excess (deficiency) of revenues over expenditures (59,042) (85,276) 5,251, ,899 Other financing sources (uses): Sale of capital assets 515 Transfers in 1,130,872 Transfers out (4,300,438) (790,840) Total other financing sources (uses) 515 (4,300,438) 340,032 Net change to fund balance (58,527) (85,276) 951, ,931 Fund balance, January 1 265, ,501 9,480,947 2,511,401 Fund balance, December 31 $ 206, ,225 10,432,219 2,960,332 See accompanying independent auditors report. (Continued) 83

93 Woodmoor Total Conservation Lincoln Station Solid Waste Mountain Special Trust L.I.D. Disposal G.I.D. Revenue Funds 6,578 23,693 12,071, , ,433 30, ,683 7,210 19, ,356 67, ,700 6,578 30,500 23,741 13,436,072 6,081 6,081 36,138 6,578 39,095 45, ,028 2,549,686 4,942, ,028 6,578 6,081 39,095 7,579,624 1,749,075 1,795,495 2,164,103 6,578 6,081 39,095 9,375,119 (1,164,403) 24,419 (15,354) 4,060, ,130,872 (5,091,278) (3,959,891) (1,164,403) 24,419 (15,354) 101,062 2,092, ,728 38,048 15,193, , ,147 22,694 15,294,274 (Continued) 84

94 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Year ended December 31, 2011 Total L.I.D. Debt Debt Service Capital Capital Service Funds Expenditures Construction Revenues: Taxes $ Intergovernmental Charges for services Fines and forfeits Interest on investments Donations, rents, reimbursements, other 146,686 Total revenues 146,686 Expenditures: Current operating: General government 410,366 Public safety Highways and streets Culture and recreation Developmental disabilities Total current operating 410,366 Capital outlay 1,548,180 Debt service: Principal 3,850,000 3,850,000 Interest and fiscal charges 1,752,304 1,752,304 Total debt service 5,602,304 5,602,304 Total expenditures 5,602,304 5,602,304 1,958,546 Excess (deficiency) of revenues over expenditures (5,602,304) (5,602,304) (1,958,546) 146,686 Other financing sources (uses): Sale of capital assets Transfers in 5,600,394 5,600,394 Transfers out (3,525) Total other financing sources (uses) 5,600,394 5,600,394 (3,525) Net change to fund balance (1,910) (1,910) (1,962,071) 146,686 Fund balance, January 1 98,495 98,495 7,226, ,000 Fund balance, December 31 $ 96,585 96,585 5,264, ,686 See accompanying independent auditors report. (Continued) 85

95 Growth Construction Law Total Nonmajor Total Enforcement Capital Capital Governmental Authority Replacement Projects Funds Funds 12,071, , ,683 7,210 6, , , ,369 6, , ,157 6, , ,199 13,856, , ,447 36,138 45,673 2,549,686 4,942, ,366 7,989,990 71,233 1,619,413 3,414,908 3,850,000 1,752,304 5,602,304 71,233 2,029,779 17,007,202 (64,477) 266,757 (1,609,580) (3,150,931) ,200 19,200 6,750,466 (1,390,000) (1,393,525) (6,484,803) (1,370,800) (1,374,325) 266,178 (64,477) (1,104,043) (2,983,905) (2,884,753) 628,651 23,523,434 31,678,547 46,970, ,174 22,419,391 28,694,642 44,085,501 86

96 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Developmental Disabilities Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Taxes: General property $ 4,756,925 4,756,925 4,845,915 88,990 Penalty and interest 10,855 10,855 Total revenues 4,756,925 4,756,925 4,856,770 99,845 Expenditures: Developmental disabilities 5,021,042 5,021,042 4,942,046 78,996 Total expenditures 5,021,042 5,021,042 4,942,046 78,996 Net change in Fund Balance $ (264,117) (264,117) (85,276) 178,841 Fund balance, January 1 583,501 Fund balance, December 31 $ 498,225 See accompanying independent auditors' report 87

97 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Open Space, Trails, and Parks Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Sales and use taxes $ 6,329,950 6,329,950 7,184, ,428 Interest on investments 138, , ,035 (4,566) Miscellaneous: Rents 6,700 6,700 59,468 52,768 Other reimbursements 8,503 8,503 Total revenues 6,475,251 6,475,251 7,386, ,133 Expenditures: Conservation of natural resources Open space administration 506, , ,358 25,280 Open space acquisitions 570, , ,902 13,181 Capital outlay 410, ,000 7, ,185 Intergovernmental municipal shareback 833, , ,599 (78,199) Contingency 100,000 18,350 18,350 Total expenditures 2,420,061 2,425,471 2,134, ,797 Excess (deficiency) of revenues over expenditures 4,055,190 4,049,780 5,251,710 1,201,930 Other financing sources (uses): Transfers Out (4,172,131) (4,172,131) (4,300,438) (128,307) Total other financing sources (uses) (4,172,131) (4,172,131) (4,300,438) (128,307) Net change in Fund Balance $ (116,941) (122,351) 951,272 1,073,623 Fund balance, January 1 9,480,947 Fund balance, December 31 $ 10,432,219 See accompanying independent auditors report. 88

98 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Parks Sales and Use Tax Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Intergovernmental: State grants $ 14,590 14,590 Total intergovernmental 14,590 14,590 Interest on investments $ 24,886 24,886 28,310 3,424 Miscellaneous: Rents 20,000 20,000 82,183 62,183 Total revenues 44,886 44, ,083 80,197 Expenditures: Culture and recreation Regional Parks Other Recreational Facilities 1,275 (1,275) Parks sales tax 5,116 6,414 (1,298) Capital outlay 18,390 8,385 10,005 Total expenditures 23,616 16,184 7,432 Excess (deficiency) of revenues over expenditures 44,886 21, ,899 87,629 Other financing sources (uses) Transfers in 998, ,031 1,130, ,841 Transfers out (795,200) (795,200) (790,840) 4,360 Total other financing sources (uses) 202, , , ,201 Net change in Fund Balance $ 247, , , ,830 Fund balance, January 1 2,511,401 Fund balance, December 31 $ 2,960,332 See accompanying independent auditors' report 89

99 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Conservation Trust Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Intergovernmental: State shared revenue $ 1,000,000 1,000, ,843 (20,157) Total intergovernmental 1,000,000 1,000, ,843 (20,157) Interest on investments 39,800 39,800 19,857 (19,943) Total revenues 1,039,800 1,039, ,700 (40,100) Expenditures: Culture and recreation: Parks-local multi purpose 175, , ,667 (91,667) Regional parks 56, ,361 (91,554) Total cultural and recreational 175, , ,028 (183,221) Capital outlay 2,310,000 2,402,702 1,749, ,627 Total expenditures 2,485,000 2,634,509 2,164, ,406 Excess (deficiency) of revenues over expenditures (1,445,200) (1,594,709) (1,164,403) 430,306 Net change in Fund Balance $ (1,445,200) (1,594,709) (1,164,403) 430,306 Fund balance, January 1 2,092,521 Fund balance, December 31 $ 928,118 See accompanying independent auditors' report 90

100 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Lincoln Station Sales Tax Improvement Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Taxes: Sales $ 10,000 10,000 6,578 (3,422) Total revenues 10,000 10,000 6,578 (3,422) Expenditures: Highways and streets: Intergovernmental Support 10,000 10,000 6,578 3,422 Total expenditures 10,000 10,000 6,578 3,422 Net change in Fund Balance $ Fund balance, January 1 Fund balance, December 31 $ See accompanying independent auditors' report 91

101 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Solid Waste Disposal Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Waste collection charges $ 45,000 45,000 30,500 (14,500) Total revenues 45,000 45,000 30,500 (14,500) Expenditures: General government: Current operating 45,000 45,000 6,081 38,919 Total expenditures 45,000 45,000 6,081 38,919 Excess (deficiency) of revenues over expenditures 24,419 24,419 Net change in Fund Balance $ 24,419 24,419 Fund balance, January 1 221,728 Fund balance, December 31 $ 246,147 See accompanying independent auditors' report 92

102 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Woodmoor Mountain G.I.D. Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Taxes: General property $ 22,022 22,022 22, Specific ownership 1,400 1,400 1, Penalty and interest Total taxes 23,422 23,422 23, Interest on investments (52) Total revenues 23,522 23,522 23, Expenditures: Highways and streets: Current operating 46,838 49,338 39,095 10,243 Total expenditures 46,838 49,338 39,095 10,243 Net change in Fund Balance $ (23,316) (25,816) (15,354) 10,462 Fund balance, January 1 38,048 Fund balance, December 31 $ 22,694 See accompanying independent auditors' report 93

103 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Debt Service Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Interest on investments $ Total revenues Expenditures: Debt service: Principal 3,835,000 3,835,000 3,850,000 (15,000) Interest 1,767,000 1,767,000 1,746,869 20,131 Fiscal charges 7,600 7,600 5,435 2,165 Total expenditures 5,609,600 5,609,600 5,602,304 7,296 Excess (deficiency) of revenues over expenditures (5,609,600) (5,609,600) (5,602,304) 7,296 Other financing sources (uses) Bond premium Bond proceeds Payment to escrow agent Debt issuance cost Transfers in 5,609,600 5,609,600 5,600,394 (9,206) Transfers out Total other financing sources (uses) 5,609,600 5,609,600 5,600,394 (9,206) Net change in Fund Balance $ (1,910) (1,910) Fund balance, January 1 98,495 Fund balance, December 31 $ 96,585 See accompanying independent auditors' report 94

104 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Capital Expenditures Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Interest on investments $ Total revenues Expenditures: General government 76, , ,366 (219,141) Capital outlay 216,750 1,976,782 1,548, ,602 Total expenditures 292,750 2,168,007 1,958, ,461 Excess (deficiency) of revenues over expenditures (292,750) (2,168,007) (1,958,546) 209,461 Other financing sources (uses) Transfers In Transfers Out (3,525) (3,525) Total other financing sources (uses) (3,525) (3,525) Net change in Fund Balance $ (292,750) (2,168,007) (1,962,071) 205,936 Fund balance, January 1 7,226,462 Fund balance, December 31 $ 5,264,391 See accompanying independent auditors' report 95

105 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget L.I.D. Capital Construction Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: LID Dissolutions $ 146, ,686 Total revenues 146, ,686 Excess (deficiency) of revenues over expenditures 146, ,686 Net change in Fund Balance $ 146, ,686 Fund balance, January 1 300,000 Fund balance, December 31 $ 446,686 See accompanying independent auditors' report 96

106 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Growth Construction Law Enforcement Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Interest on investments $ 4,000 4,000 6,756 2,756 Total revenues 4,000 4,000 6,756 2,756 Expenditures: Capital outlay 629,533 71, ,300 Total expenditures 629,533 71, ,300 Excess (deficiency) of revenues over expenditures 4,000 (625,533) (64,477) 561,056 Net change in Fund Balance $ 4,000 (625,533) (64,477) 561,056 Fund balance, January 1 628,651 Fund balance, December 31 $ 564,174 See accompanying independent auditors' report 97

107 Schedule of Revenues, Expenditures, and Changes in Fund Balance Actual and Budget Capital Replacement Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Charges for services: Intragovernmental Rentals $ 6,500 6,500 Interest on Investments 260, ,257 Total revenues 266, ,757 Excess of revenues over expenditures 266, ,757 Other financing sources (uses) Transfers in 19,200 19,200 19,200 Transfers out (1,390,000) (1,390,000) (1,390,000) Total other financing sources (uses) (1,370,800) (1,370,800) (1,370,800) Net change in Fund Balance $ (1,370,800) (1,370,800) (1,104,043) 266,757 Fund balance, January 1 23,523,434 Fund balance, December 31 $ 22,419,391 See accompanying independent auditors' report 98

108 99

109 INTERNAL SERVICE FUNDS Internal Service Funds account for financing of goods and services provided by one department or agency to other departments or agencies of the County on a cost reimbursement basis. The County s Internal Service Funds include: Employee Benefits Fund This fund is used to account for the accumulation of funds generated from interdepartmental assessments used in the administration of various self-insured employee benefit programs. This includes short-term disability, unemployment, and workers compensation. Payments include claims and stop-loss insurance premiums. Property and Liability Fund This fund is used to account for the accumulation of funds generated from interdepartmental assessments to be used for the administration of various self-insured property and liability insurance programs. 100

110 Combining Statement of Net Assets Internal Service Funds December 31, 2011 Total Internal Employee Property and Service Benefits Liability Fund Assets: Current assets: Cash and investments $ 1,418,019 1,855,320 3,273,339 Accounts receivable Prepaid expenses 23,000 23,000 Total current assets 1,441,019 1,855,975 3,296,994 Total assets 1,441,019 1,855,975 3,296,994 Liabilities: Current liabilities: Accounts payable 107,695 5, ,006 Accrued claims payable 870, ,000 Total current liabilities 977,695 5, ,006 Total liabilities 977,695 5, ,006 Net assets: Unrestricted 463,324 1,850,664 2,313,988 Total net assets 463,324 1,850,664 2,313,988 Total liabilities and net assets $ 1,441,019 1,855,975 3,296,994 See accompanying independent auditors report. 101

111 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds Year ended December 31, 2011 Total Internal Employee Property and Service Benefits Liability Fund Operating revenues: Charges for services $ 1,164, ,986 1,875,358 Other operating revenue 35,006 23,003 58,009 Total operating revenues 1,199, ,989 1,933,367 Operating expenses: Purchased services Fixed charges 164, , ,156 Insurance benefits/claims 1,406,990 81,576 1,488,566 Total operating expenses 1,571, ,498 2,154,722 Operating income/(loss) before transfers (371,846) 150,491 (221,355) Transfers In / (Out) 400,000 (400,000) Increase/(decrease) in net assets 28,154 (249,509) (221,355) Total net assets beginning of period 435,170 2,100,173 2,535,343 Total net assets end of period $ 463,324 1,850,664 2,313,988 See accompanying independent auditors report. 102

112 Combining Statement of Cash Flows Internal Service Funds Year ended December 31, 2011 Total Internal Employee Property and Service Benefits Liability Fund Cash flows from operating activities: Cash received from internal customers $ 1,206, ,224 1,941,317 Cash payments to external suppliers for goods and services (938,620) (985,830) (1,924,450) Net cash provided/(used) by operating activities 267,473 (250,606) 16,867 Net increase/(decrease) in cash and equivalents 267,473 (250,606) 16,867 Cash balances January 1 1,150,546 2,105,926 3,256,472 Cash balances December 31 $ 1,418,019 1,855,320 3,273,339 Reconciliation of operating income/(loss) to net cash provided/(used) by operating activities: Operating income/(loss) $ 28,154 (249,509) (221,355) Adjustments to reconcile operating income/(loss) to net cash provided/(used) by operating activities: Decrease in accounts payable (25,212) (2,332) (27,544) Increase in estimated liability for claims and judgments 270, ,816 (Increase) in prepaid reserves (13,000) (13,000) Decrease in Accounts Receivable 6,715 1,235 7,950 Total adjustments 239,319 (1,097) 238,222 Net cash provided/(used) by operating activities $ 267,473 (250,606) 16,867 See accompanying independent auditors report. 103

113 Schedule of Revenues, Expenditures, and Changes in Net Assets Actual and Budget Employee Benefits Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Charges for services $ 998, ,645 1,164, ,727 Other operating revenue 35,006 35,006 Total revenues 998, ,645 1,199, ,733 Expenditures: Employee benefits: Purchased services 1,000 1,000 1,000 Fixed charges 230, , ,234 65,766 Insurance benefits/claims 750,000 1,200,000 1,406,990 (206,990) Total employee benefits 981,000 1,431,000 1,571,224 (140,224) Contingency 175, , ,000 Total expenditures 1,156,000 1,556,000 1,571,224 (15,224) Operating Income/(loss) before transfers (157,355) (557,355) (371,846) 185,509 Transfer in 400, ,000 Net change in net assets $ (157,355) (157,355) 28, ,509 Net assets, January 1 435,170 Net assets, December 31 $ 463,324 See accompanying independent auditors report. 104

114 Schedule of Revenues, Expenditures, and Changes in Net Assets Actual and Budget Property and Liability Fund Year ended December 31, 2011 Budgeted Original Final Actual Variance Revenues: Charges for services $ 718, , ,986 (7,410) Other operating revenue 15,000 15,000 23,003 8,003 Total revenues 733, , , Expenditures: Insurance: Purchased services 50,000 50,000 50,000 Fixed charges 810, , , ,816 Insurance benefits/claims 400, ,000 81, ,424 Total insurance 1,260, , , ,240 Contingency 100,000 Total expenditures 1,360, , , ,240 Operating income/(loss) before transfers (627,342) (227,342) 150, ,833 Transfer out (400,000) (400,000) Net change in net assets $ (627,342) (627,342) (249,509) 377,833 Net assets, January 1 2,100,173 Net assets, December 31 $ 1,850,664 See accompanying independent auditors report. 105

115 FIDUCIARY FUNDS Agency Funds are held by Douglas County in a custodial capacity for individuals, governmental entities, and nonpublic organizations, as established by resolution or state statute. The County s agency funds include: Treasurer s Fund This fund is used to account for the receipt and disbursement of all property tax revenues received by the Treasurer for the County and all other taxing entities in the County, as well as the receipt, investment, and disbursement of all other revenues received by the County. Public Trustee Fund This fund is used to account for the fiduciary activities of the Public Trustee including foreclosures and releases of deeds of trust. Douglas County Jail Escrow/Inmate Commissary and Explorer Post Fund This fund is used to account for the receipt and disbursement of all inmate escrow, inmate commissary and Explorer Post transactions. Colorado Information Sharing Consortium (CISC) Fund This fund is used to account for the monies collected and disbursements issued as approved and directed by the CISC Board. 106

116 Combining Statement of Fiduciary Assets and Liabilities Fiduciary Funds December 31, 2011 Total Public CISC Agency Assets Treasurer Trustee Sheriff Fiscal Agent Funds Equity in treasurer s cash and investments $ 5,413,963 1,655, , ,193 7,922,815 Accounts receivable 2,131,770 8,338 2,140,108 Total assets $ 7,545,733 1,663, , ,193 10,062,923 Liabilities Accounts payable $ 2,156,081 1,138 2,157,219 Due to others 5,389,652 1,662, , ,193 7,905,704 Total liabilities $ 7,545,733 1,663, , ,193 10,062,923 See accompanying independent auditors report. 107

117 Combining Statement of Changes in Assets and Liabilities Fiduciary Funds Year ended December 31, 2011 Balances Balances January 1, December 31, Treasurer s Funds 2011 Additions Deductions 2011 Assets: Cash and investments $ 6,015,076 3,941,238,610 3,941,839,723 5,413,963 Accounts receivable 1,694,524 70,306,265 69,869,019 2,131,770 Total assets $ 7,709,600 4,011,544,875 4,011,708,742 7,545,733 Liabilities: Accounts payable $ 1,800,764 1,129,196,617 1,128,841,300 2,156,081 Due to others 5,908, ,164, ,683,232 5,389,652 Total liabilities $ 7,709,600 1,598,360,665 1,598,524,532 7,545,733 Public Trustee Assets: Cash and investments $ 1,441,300 39,851,869 39,637,640 1,655,529 Accounts receivable 795 7,543 8,338 Total assets $ 1,442,095 39,859,412 39,637,640 1,663,867 Liabilities: Accounts payable $ 2,301 1,163 1,138 Due to others 1,439,794 39,860,575 39,637,640 1,662,729 Total liabilities $ 1,442,095 39,860,575 39,638,803 1,663,867 Jail Escrow, Commissary & Explorer Post Funds Assets: Cash and investments $ 528,160 2,802,820 2,674, ,130 Liabilities: Due to others $ 528,160 2,802,820 2,674, ,130 CISC Fiscal Agent Assets: Cash and investments $ 132,870 65,439 1, ,193 Accounts receivable 1,116 1,116 Total assets $ 132,870 66,555 2, ,193 Liabilities: Accounts payable $ Due to others 132,870 64, ,193 Total liabilities $ 132,870 64, ,193 Total all agency Funds Assets: Cash and investments $ 8,117,406 3,983,958,738 3,984,153,329 7,922,815 Accounts receivable 1,695,319 70,314,924 69,870,135 2,140,108 Total assets $ 9,812,725 4,054,273,662 4,054,023,464 10,062,923 Liabilities: Accounts payable $ 1,803,065 1,129,196,617 1,128,842,463 2,157,219 Due to others 8,009, ,891, ,995,722 7,905,704 Total liabilities $ 9,812,725 1,641,088,383 1,640,838,185 10,062,923 See accompanying independent auditors report. 108

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119 110

120 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # City or County: Douglas County LOCAL HIGHWAY FINANCE REPORT This Information From The Records Of County of Douglas YEAR ENDING : December 2011 Prepared By: Christy McKinzie Phone: x4348 I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration II. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITEM AMOUNT ITEM AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 9,043,479 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 18,250,691 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 2,312, General fund appropriations b. Snow and ice removal 1,645, Other local imposts (from page 2) 46,320,414 c. Other 18,644, Miscellaneous local receipts (from page 2) 1,589,297 d. Total (a. through c.) 22,603, Transfers from toll facilities 4. General administration & miscellaneous 352, Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5) 50,250,429 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) 0 a. Interest 357, Total (1 through 6) 47,909,711 b. Redemption 1,290,000 B. Private Contributions 540 c. Total (a. + b.) 1,647,663 C. Receipts from State government 2. Notes: (from page 2) 7,676,948 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) E. Total receipts (A.7 + B + C + D) 1,100,633 56,687,832 c. Total (a. + b.) 3. Total (1.c + 2.c) 0 1,647,663 C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D) 51,898,092 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total) 0 1. Bonds (Refunding Portion) B. Notes (Total) 0 V. LOCAL ROAD AND STREET FUND BALANCE Notes and Comments: A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 58,983,358 56,687,832 51,898,092 63,773,100 0 FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) Highway Report 2011

121 LOCAL HIGHWAY FINANCE REPORT STATE: Colorado YEAR ENDING (mm/yy): December 2011 II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM AMOUNT ITEM AMOUNT A.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 21,812,011 a. Interest on investments 306,858 b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes 16,907,125 c. Parking Garage Fees 2. Infrastructure & Impact Fees 281,971 d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 1,172, Licenses f. Charges for Services 5. Specific Ownership &/or Other 7,319,307 g. Other Misc. Receipts 6. Total (1. through 5.) 24,508,403 h. Other 110,111 c. Total (a. + b.) 46,320,414 i. Total (a. through h.) 1,589,297 (Carry forward to page 1) (Carry forward to page 1) ITEM AMOUNT ITEM AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 6,877, FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service 66,215 a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 653,693 d. Federal Transit Admin 16,673 d. Other (Specify) e. U.S. Corps of Engineers 297,287 e. Other (Specify) 145,695 f. Other Federal 720,458 f. Total (a. through e.) 799,388 g. Total (a. through f.) 1,100, Total ( f) 7,676, Total ( g) (Carry forward to page 1) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a) (b) (c) A.1. Capital outlay: a. Right-Of-Way Costs 1,472 1,472 b. Engineering Costs 1,168,540 1,168,540 c. Construction: (1). New Facilities 1,889,632 1,889,632 (2). Capacity Improvements 1,968,367 1,968,367 (3). System Preservation 78,735 78,735 (4). System Enhancement & Operation 3,936,734 3,936,734 (5). Total Construction (1) + (2) + (3) + (4) 0 7,873,467 7,873,467 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 0 9,043,479 9,043,479 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 112

122 113

123 114

124 STATISTICAL SECTION 115

125 Listing of Statistical Information Financial Trends Information - These schedules contain trend information that may aid the reader in evaluating the County's current financial performance by placing it in historical perspective. Page Net Assets by Component 117 Changes in Net Assets 118 Changes in Fund Balances, Governmental Funds 120 Fund Balances, Governmental Funds 121 Revenue Capacity - These schedules contain information that may aid the reader in assessing the County's most significant sources of revenue. Tax Revenues by Source, Governmental Funds 123 Assessed Value and Estimated Market Value of Taxable Property 124 Direct and Overlapping Property Tax Rates 125 Principal Property Tax Payers 126 Property Tax Levies and Collections 127 Debt Capacity - These schedules present information that may aid the reader in analyzing the extent of the County's current level of debt and the County's ability to issue debt in the future. Ratios of Outstanding Debt by Type 128 Legal Debt Margin Information 129 Revenue Bond Coverage 130 Special Assessment Debt without Government Commitment 131 Demographic and Economic Information - These schedules offer demographic and economic indicators that are commonly used for financial analysis and that may aid the reader in understanding the County's present and ongoing financial status. Demographic Statistics 132 Principal Employers 133 Operating Information - These schedules contain service and infrastructure indicators that may aid the reader in ascertaining how the information in the County's financial statements relate to the services the County provides and the activities it performs. Budgeted Full-time Equivalent County Employees by Function/Program 134 Operating Indicators by Function/Program 135 Capital Asset Statistics by Function/Program

126 Net Assets by Component, Last Nine Fiscal Years* (accrual basis of accounting) Fiscal Year Governmental activities Invested in capital assets, net of related debt $ 150,268,926 $ 173,102,316 $ 194,691,896 $ 505,020,940 Restricted 24,791,100 31,008,742 28,768,310 28,208,033 Unrestricted 83,472,338 88,342, ,196, ,971,413 Total governmental activities net assets $ 258,532,364 $ 292,453,425 $ 329,657,060 $ 649,200,386 Fiscal Year Governmental activities Invested in capital assets, net of related debt $ 516,517,601 $ 530,356,372 $ 528,373,772 $ 528,991,319 Restricted 8,432,119 9,230,655 7,907,839 11,755,582 Unrestricted 152,576, ,500, ,351, ,162,162 Total governmental activities net assets $ 677,526,260 $ 702,087,795 $ 702,632,622 $ 722,909, Governmental activities Invested in capital assets, net of related debt $ 513,930,760 Restricted 11,692,557 Unrestricted 207,677,975 Total governmental activities net assets $ 733,301,292 Fiscal Year *Prior to Fiscal year 2002, net assets by component is not available due to the initial year of GASB Statement No. 34 presentation. Unaudited-See accompanying independent auditors' report. 117

127 Changes in Net Assets Last Nine Fiscal Years (accrual basis of accounting) Fiscal Year Expenses Governmental activities: General government $ 35,496,576 $ 35,871,168 $ 39,189,506 $ 43,167,708 Judicial 4,441,176 5,111,927 5,485,954 6,091,006 Public safety 37,940,785 38,697,021 40,086,540 44,515,429 Highways and streets 20,888,274 23,569,041 41,648,071 55,330,574 Health and human services 8,810,074 9,499,822 13,276,426 12,919,729 Culture and recreation 5,016,527 4,966,960 5,599,196 4,858,480 Conservation of natural resources 557, ,281 1,221, ,031 Economic development and assistance 175, , , ,012 Developmental disabilities 2,892,336 3,164,232 3,344,107 3,878,064 Community services 756, , , ,253 Sanitation 82,996 79,501 77,642 51,400 Intergovernmental 7,750,208 16,939, Interest and fiscal charges 4,173,255 3,679,888 3,446,777 3,372,972 Total governmental activities espenses 128,981, ,767, ,395, ,676,658 Program Revenues Governmental activities: Charges for services: General government $ 17,202,883 $ 16,984,291 19,089,846 20,388,970 Judicial 50,975 3, , ,452 Public safety 3,332,092 4,227,352 4,191,492 3,605,137 Highways and streets 474, , , ,980 Culture and recreation 291, , , ,442 Sanitation 4,679 4,645 5,029 38,140 Intergovernmental Operating grants and contributions 30,201,801 16,930,996 19,753,408 28,028,407 Capital grants and contributions - 7,714,113 3,142, ,700 Total governmental activities program revenues 51,558,887 46,853,354 47,483,588 53,888,228 Total government program revenues $ 51,558,887 $ 46,853,354 47,483,588 53,888,228 Total government net expense $ (77,422,932) $ (95,913,911) (106,911,876) (121,788,431) General Revenue and Other Changes in Net Assets Governmental activities: Taxes Property taxes $ 69,029,421 $ 74,297,727 78,413,453 87,887,963 Sales and use taxes 37,029,051 41,143,533 43,632,927 43,114,973 Other 8,507,184 8,511,131 8,802,889 8,938,674 Interest Earnings 1,885,945 2,711,105 5,677,834 8,746,007 Gain (loss) on disposal of capital assets - - 2,940,665 - Miscellaneous 4,893,007 3,171,476 4,647,743 8,515,349 Total governmental activities 121,344, ,834, ,115, ,202,966 Change in Net Assets Total government $ 43,921,676 $ 33,921,061 $ 37,203,635 $ 35,414,535 Prior to Fiscal year 2002, changes in net assets is not available due to the initial year of GASB Statement No. 34 presentation. Beginning 2005 intergovernmental expenses reflected in corresponding functions. Unaudited-See accompanying independent auditors' report. 118

128 Changes in Net Assets Last Nine Fiscal Years (accrual basis of accounting) Expenses Governmental activities: General government Judicial Public safety Highways and streets Health and human services Culture and recreation Conservation of natural resources Economic development and assistance Developmental disabilities Community services Sanitation Intergovernmental Interest and fiscal charges Total governmental activities espenses Fiscal Year $ 47,303,017 $ 52,210,456 $ 46,118,595 $ 45,878,570 $ 43,747,376 6,856,662 9,639,408 7,879,366 7,880,242 7,405,523 45,659,580 48,129,310 49,987,445 52,744,534 52,088,421 63,476,819 59,164,628 68,887,631 59,508,847 72,264,571 15,085,403 16,543,713 21,349,438 23,566,852 24,548,313 4,702, ,168 5,713,164 5,739,426 7,996,721 3,371,732 8,508,593 2,698,545 2,268, , , , , , ,648 3,859,325 4,319,055 4,614,530 4,898,829 4,942, , , , , ,642 64,733 56,294 84,437 71,506 76, ,024,065 2,733,180 1,725,377 2,661,092 1,804, ,161, ,391, ,197, ,019, ,217,654 Program Revenues Governmental activities: Charges for services: General government Judicial Public safety Highways and streets Culture and recreation Sanitation Intergovernmental Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Total government program revenues 21,530,543 19,354,758 17,384,633 18,741,521 18,985, , , , , ,568 4,210,888 4,356,427 4,892,748 5,483,216 5,670, , , , , , , , , , ,470 42,874 53,319 30,955 48,783 36, ,898,836 30,323,471 32,420,729 38,925,620 36,096, ,140 3,972,839-50, ,131 58,323,826 59,558,246 55,935,394 64,525,488 62,565,374 58,323,826 59,558,246 55,935,394 64,525,488 62,565,374 Total government net expense General Revenue and Other Changes in Net Asse Governmental activities: Taxes Property taxes Sales and use taxes Other Interest Earnings Gain (loss) on disposal of capital assets Miscellaneous Total governmental activities Change in Net Assets Total government (135,837,904) (143,832,958) (154,262,305) (141,493,578) (153,652,280) 91,171, ,853, ,230, ,850, ,188,097 44,364,885 40,972,295 37,195,965 39,310,208 42,263,754 9,359,054 8,969,147 8,177,848 7,812,127 7,556,422 11,314,411 8,393,279 3,044,782 2,851,302 2,548, ,953,476 8,205,792 2,158,317 2,945,393 2,487, ,163, ,394, ,807, ,770, ,044,509 $ 28,325,874 $ 24,561,535 $ 544,827 $ 20,276,441 $ 10,392,

129 Fund Balances, Governmental Funds, Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year General Fund Nonspendable $ 386,053 $ 87,105 $ 38,828 $ 326,263 $ 449,667 Restricted 5,000,000-5,200,000 5,400,000 5,684,866 Committed - - 1,707,732 2,986,410 1,948,878 Assigned 6,370,125 6,896,526 4,620,559 8,195,844 12,616,860 Unassigned 3,210,148 7,961,635 10,534,970 14,324,864 15,861,529 Total General Fund 14,966,326 14,945,266 22,102,089 31,233,381 36,561,800 All Other Governmental Funds Nonspendable 863, , ,602 4,162,100 3,580,395 Restricted 350, , ,000 2,671,843 Committed 475,217 19,691,100 26,766,789 39,883,382 22,087,467 Assigned 82,641,213 65,180,636 77,373,386 62,352,179 82,952,500 Total All Other Governmental Funds $ 84,329,941 $ 85,840,147 $ 105,346,777 $ 106,797,661 $ 111,292,205 Fiscal Year General Fund Nonspendable $ 966,297 $ 351,364 $ 397,679 $ 330,342 $ 490,221 Restricted 6,108,433 6,904,088 6,323,085 8,456,740 8,060,499 Committed 6,701,175 18,245,861 8,129,497 7,468,032 7,744,783 Assigned 17,456,550 6,347,521 6,152,681 16,173,301 22,911,233 Unassigned 11,993,247 10,314,233 15,290,968 19,189,631 25,452,851 Total General Fund 43,225,702 42,163,067 36,293,910 51,618,046 64,659,587 All Other Governmental Funds Nonspendable 12,543,146 4,495,153 3,217,682 3,919,194 3,673,177 Restricted 7,293,927 3,342,274 3,306,823 3,298,842 3,632,058 Committed 11,306,819 1,785,643 1,155,557 10,417,570 27,035,340 Assigned 89,489, ,161, ,019, ,795, ,196,270 Total All Other Governmental Funds $ 120,633,159 $ 132,784,735 $ 139,699,638 $ 143,430,915 $ 156,536,845 Unaudited-See accompanying independent auditors' report. 120

130 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year Revenues Taxes $ 107,179,922 $ 114,565,656 $ 123,952,391 $ 130,849,269 $ 139,941,610 Licenses and permits 4,663,590 5,026,056 5,897,466 6,347,927 6,773,990 Intergovernmental 15,493,543 30,201,801 27,647,229 22,895,902 28,193,107 Charges for services 13,915,936 16,331,030 16,310,779 15,995,170 16,644,633 Fines and forfeits 975, , ,489 1,101, ,158 Interest on investments 4,035,035 1,885,945 2,711,105 5,677,834 8,746,007 Donations, rent, reimburse, other 3,030,795 4,090,602 4,460,722 4,610,399 8,409,189 Total revenues 150,603, ,806, ,896, ,478, ,684,694 Expenditures General government 34,256,076 33,709,185 32,032,030 34,400,061 38,236,121 Judicial 4,033,771 4,439,667 5,111,927 5,485,954 6,091,006 Public safety 31,280,750 35,324,368 35,707,309 36,819,639 39,592,230 Highways and streets 39,556,062 19,238,925 20,369,384 36,905,136 34,478,158 Sanitation 105,024 82,996 79,501 77,642 51,400 Health and human services 6,638,393 8,764,735 9,454,483 11,731,087 12,797,885 Culture and recreation 13,340,542 3,753,906 3,734,452 4,142,544 5,579,433 Conservation of natural resources 426, , ,149 1,149, ,991 Economic development and assistance 160, , , , ,012 Developmental disabilities 2,473,754 2,892,336 3,164,232 3,344,107 3,878,064 Community services 800, , , , ,253 Intergovernmental 7,512,862 7,750,207 16,939, Debt service Principal 2,925,000 3,730,000 6,449,000 6,724,000 7,084,000 Debt issuance costs ,046 - Interest and fiscal charges 3,230,726 3,482,362 3,595,497 3,631,361 3,419,731 Capital outlay 5,585,265 47,556,475 47,535,493 39,251,194 48,318,222 Total expenditures 152,325, ,040, ,301, ,984, ,240,506 Excess of revenues over (under) expenditures (1,722,295) 765,551 (3,405,386) 2,494,158 9,444,188 Other financing sources (uses) Transfers in 18,969,096 15,581,842 38,094,016 30,639,791 31,118,549 Transfers out (24,061,496) (16,482,842) (28,064,988) (30,639,791) (31,118,549) Proceeds from debt issuance 23,013,173 1,548,000 19,390,000 16,680,000 - Refunding bonds issued Premium on bonds , ,658 - Sale of capital assets 63,891 76, ,787 4,119, ,775 Payment to escrow agent (13,123,677) - Total other financing sources (uses) 17,984, ,595 30,068,839 8,088, ,775 Net change in fund balances $ 16,262,369 $ 1,489,146 $ 26,663,453 $ 10,582,176 $ 9,822,963 Debt service as a percentage of noncapital expenditures 4.2% 5.8% 7.3% 7.3% 6.9% Beginning 2005 intergovernmental expenses reflected in corresponding functions. Unaudited - See accompanying independent auditors' report. 121

131 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years (modified accrual basis of accounting) Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest on investments Donations, rent, reimburse, other Total revenues Fiscal Year $ 144,895,891 $ 151,795,422 $ 149,604,033 $ 155,973,324 $ 159,008,273 6,676,851 5,434,793 4,034,126 5,003,425 5,252,625 30,679,976 34,295,810 32,420,729 38,976,175 36,583,871 17,168,123 16,565,894 15,555,788 16,490,861 17,349,283 1,343,432 1,171,363 1,607,138 1,790,399 1,504,237 11,314,411 8,393,279 3,044,782 2,851,302 2,548,574 7,798,069 8,073,641 2,035,842 2,255,243 2,511, ,876, ,730, ,302, ,340, ,758,722 Expenditures General government Judicial Public safety Highways and streets Sanitation Health and human services Culture and recreation Conservation of natural resources Economic development and assistance Developmental disabilities Community services Intergovernmental Debt service Principal Debt issuance costs Interest and fiscal charges Capital outlay Total expenditures Excess of revenues over (under) expenditures 39,483,525 42,161,686 41,974,199 39,612,553 39,566,936 6,852,827 7,425,445 7,903,482 7,840,089 7,400,948 40,841,860 44,343,334 46,299,502 47,168,108 47,358,069 35,156,378 35,518,417 43,928,522 37,718,458 45,947,576 64,733 56,294 79,812 56,674 68,849 13,860,075 16,306,864 21,151,179 23,374,561 24,350,234 3,629,762 3,772,084 3,707,293 3,761,543 5,986,411 3,043,322 2,097,654 2,040,711 2,142, , , , , , ,648 3,859,325 4,319,055 4,614,530 4,898,829 4,942, , , , , , ,800,000 8,061,000 7,277,000 13,288,000 3,850, , ,619-3,089,572 2,798,821 2,238,825 2,416,666 1,752,304 45,908,351 46,968,718 25,021,004 35,397,454 16,316, ,347, ,028, ,634, ,614, ,757,213 15,528,933 10,701, ,758 4,725,924 26,001,509 Other financing sources (uses) Transfers in Transfers out Proceeds from debt issuance Refunding bonds issued Premium on bonds Sale of capital assets Payment to escrow agent Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 30,608,326 35,120,054 29,658,492 30,252,510 19,224,398 (30,608,326) (35,120,054) (29,658,492) (30,252,510) (19,224,398) ,770, ,010, , , , , ,108 73, , (18,398,362) , , ,989 14,329, ,962 $ 16,004,856 $ 11,088,941 $ 1,045,746 $ 19,055,413 $ 26,147, % 6.5% 5.4% 8.7% 3.1% 122

132 Tax Revenues by Source, Governmental Funds, Last Ten Fiscal Years Fiscal Property Sales and Specific Auto Year Tax Use Tax Ownership Tax Other Total ,635,050 35,315,936 8,136,990 4,785, ,873, ,142,935 37,029,051 8,393,670 4,713, ,278, ,431,318 41,143,656 8,377,417 4,919, ,871, ,617,004 43,632,927 8,599,338 4,786, ,635, ,887,963 43,114,973 8,766,566 * 172, ,941, ,171,952 44,364,885 9,148, , ,895, ,853,980 40,972,295 8,723, , ,795, ,230,220 37,195,965 7,873, , ,604, ,850,989 39,310,208 7,498, , ,973, ,188,097 42,263,754 7,315, , ,008,273 Change % 19.7% -10.1% -95.0% 42.1% *HUTF tax was changed to intergovernmental revenue in Unaudited-See accompanying independent auditors' report. 123

133 Assessed Value and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years Total Taxable Total State Exempt and Exempt Direct Fiscal Personal Assessed Assessed Assessed Tax Year Land Improvements Property (Utilities) Value Value Rate ,389,405 1,997,538, ,707, ,780, ,876,490 3,469,292, ,267,410 2,075,736, ,992, ,539, ,691,200 3,813,226, ,154,110 2,212,013, ,115, ,736, ,895,800 4,019,914, ,084,349,660 2,429,428, ,379, ,537, ,691,790 4,530,386, ,106,718,190 2,591,788, ,019, ,320, ,650,650 4,750,496, ,354,246,330 2,825,271, ,958, ,184,200 1,024,317,410 5,575,977, ,392,999,550 2,901,332, ,883, ,966,400 1,068,074,820 5,746,257, ,449,567,750 3,013,152, ,700, ,083, ,241,560 5,828,745, ,441,563,060 3,057,704, ,966, ,980, ,552,280 5,885,766, ,234,291,910 2,841,883, ,890, ,908, ,113,680 5,495,087, Total Assessed Total Value as a % of Fiscal Estimated Total Estimated Year Actual Value Actual Value ,263,821, % ,237,802, % ,312,091, % ,096,402, % ,195,971, % ,860,151, % ,415,468, % ,546,851, % ,681,439, % ,162,168, % ,717,528, % Source: Douglas County Assessor Short Abstract Summary Unaudited-See accompanying independent auditors' report. 124

134 Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years County Direct Rates Special Capital Fiscal General Revenue Projects Total Year Fund Funds Funds Direct Overlapping Rates Douglas County [1] Water [1] Fiscal School [1] Cities & [1] Law Enforce- Fire [1] and Year District Towns ment Authority Protection Sanitation Metropolitan [1] Other [1] Source: Douglas County Assessor All tax rates are per $1,000 assessed valuation. [1] Mill Levies provide for cities / towns and special districts are weighted-average rates based on the total general property tax revenue levied. *2002 includes approved at election 11/01, additional mill dedicated to Developmental Disabilities. Source: Certification of Mill Levies, adjusted for assessed valuation on Treasurer's Tax Dollar Warrant summary. Unaudited-See accompanying independent auditors' report. 125

135 Principal Property Tax Payers, Current Year and Ten Years Ago % of Total Assessed Value Assessed Value Cty Assessed Taxpayer Valuation Rank Valuation Rank Value Park Meadows Mall LLC 61,970, ,941, % HCA HealthOne LLC 48,530, Intermountain Rural Elec Assn 43,139, ,118, % Public Service Co. of Colo (Xcel) 40,741, ,791, % Century Link (was Qwest Corporation) 38,882, ,586, % Craig Realty Group Castle Rock LLC 18,898, Plaza Drive Properties LLC 16,931, ,963, % Target Corporation 16,391, Visa USA Inc 13,863, Wells Reit II South Jamaica Street LLC 11,759, ,841, % DIRECTV Operations - - Castle Rock Factory Shops Partner - 20,878, % Merrill Lynch & Co - 17,128, % TCI Realty Investments - 14,709, % Meridian Associates East - 8,056, % Thyssen-Bornemisza, Inc - 6,370, % Total Principal Taxpayers 311,108, ,544, % Total Taxable Assessed Value $ 4,504,740,930 $ 2,776,289, % Source: Douglas County Treasurer Unaudited-See accompanying independent auditors' report. 126

136 Property Tax Levies and Collections, Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Total Collections to Date Taxes levied Collections Fiscal for the Percentage in Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy ,870,404 62,761, ,062 62,812, % ,874,867 68,365, (191,706) 68,173, % ,109,141 74,013, (119,210) 73,894, % ,995,911 77,980, (75,721) 77,905, % ,160,287 87,063, (35,769) 87,027, % ,145,192 91,045, (41,539) 91,004, % ,210, ,187, (115,855) 102,071, % ,999, ,606, (73,416) 104,533, % ,917, ,295, (81,356) 110,214, % ,950, ,951, (49,053) 109,902, % Note: Collections within the fiscal year may be in excess of 100%, as the amounts collected for prior years may exceed the current year collected amounts. Source: Douglas County Treasurer Unaudited-See accompanying independent auditors' report. 127

137 Ratios of Outstanding Debt by Type, Last Ten Fiscal Years General Bonded Debt Other Governmental Activities Debt General Obligation Bonds Percentage of Assessed Property Value Justice Center Sales and Use Tax Rev. Bonds Ser Open Space Sales & UseTax Rev. Bonds Ser Open Space Sales & Use Tax Rev. Bonds Ser Open Space Sales & Use Tax Rev. Bonds Ser Parks Sales & Use Tax Rev. Bonds Ser Open Space Sales & Use Tax Rev. Bonds Ser % 22,465,000 2,770,000 4,100,000 16,740, % 20,690,000 2,420,000 4,100,000 16,305,000 5,140,000 17,805, % 18,830,000 2,055,000 4,100,000 15,855,000 4,970,000 17,305, % 16,880,000 1,675,000 4,100,000 15,385,000 4,780,000 16,770, % 2,150,000 1,280,000 4,100,000 14,890,000 4,585,000 16,230, % - 870,000 4,100,000 14,370,000 4,385,000 15,680, % - 440,000 4,100,000 13,830,000 4,180,000 15,120, % - - 4,100,000 13,255,000 3,970,000 14,545, % ,750,000 13,975, % ,525,000 13,370, % ,290,000 12,745,000 Road Imp. Sales & Use Tax Rev Bonds Ser Other Governmental Activities Debt Parks Sales & Use Tax Rev. Bonds Ser Open Space Sale & Use Tax Refunding Bond 2009 Road Imp Sales & Use Tax Rev Bonds Ser Certificates of Participation Total Primary Government Percentage of Personal Income Percentage of Assessed Property Value Total Outstanding Debt Per Capita ,625,000 50,700, % 1.83% ,260,000 70,720, % 2.34% ,423,000 68,538, % 2.10% ,840,000 5,160, ,889,000 81,479, % 2.36% ,555,000 4,950, ,080,000 78,750, % 2.06% ,240,000 4,735, ,496,000 71,666, % 1.78% ,880,000 4,515, ,321,000 63,866, % 1.40% ,470,000 4,285, ,095,000 55,805, % 1.19% ,050,000 18,010,000-6,808,000 49,183, % 1.01% ,805,000 16,600,000 12,365,000-49,665, % 1.01% ,555,000 15,150,000 11,075,000-45,815, % 1.02% Unaudited-See accompanying independent auditors' report. 128

138 Legal Debt Margin Information, Last Ten Fiscal Years Debt limit $ 52,039,338 $ 57,198,403 $ 60,298,725 $ 67,955,795 $ 71,257,449 Total net general obligation debt Legal debt margin $ 52,039,338 $ 57,198,403 $ 60,298,725 $ 67,955,795 $ 71,257,449 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% Debt limit $ 83,639,664 $ 86,193,858 $ 87,431,180 $ 88,286,501 82,426,318 Total net general obligation debt Legal debt margin $ 83,639,664 $ 86,193,858 $ 87,431,180 $ 88,286,501 $ 82,426,318 Total net debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% Legal Debt Margin Calculation Assessed Value 4,504,974,169 Exempt Property Assessed Value 990,113,680 Total Assessed Value $ 5,495,087,849 Debt Limit 1-1/2% of Total Assessed Value 82,426,318 Computation of Legal Debt Margin Less: Amount of Current Debt Applicable to Debt Limit General Obligation Bonded Debt Legal Debt Margin $ 82,426,318 Unaudited-See accompanying independent auditors' report. 129

139 Revenue Bond Coverage, Last Ten Fiscal Years FISCAL SALES & INTEREST ON TOTAL DEBT SERVICE REQUIREMENTS YEAR USE TAX RESERVES REVENUE PRINCIPAL INTEREST TOTAL COVERAGE ,175,550 5,999,636 [1] [3] 617,599 15,793,149 1,775, ,356 6,369, ,000 [2] [4] 1,195,898 1,580,889 [2] [4] 2,970, ,365, ,920,426 5,277,062 1,017,059 [1] [3] [5] 347,678 16,268,104 1,860, ,720 5,466,782 1,315,000 36,565 1,053, ,000 [2] [4] [6] 1,110,697 1,912, ,757 [2] [4] [6] 2,970, ,227, , ,689,991 6,993,718 16,459,824 [1] [3] [5] 367,739 18,057,730 1,950, ,123 7,329,841 1,575, ,719 17,201,543 2,390,000 [2] [4] [6] 1,019,557 2,074, ,595 [2] [4] [6] 2,969, ,649, ,611, ,762,157 7,417,597 17,453,173 [1] [3] [5] 242,203 19,004,360 14,730, ,707 8,193,304 1,835,000 1,393,621 18,846,793 2,285,000 [2] [4] [6] 576,064 2,164, ,800 [2] [4] [6] 15,306, ,999, ,663, ,539,438 7,329,545 17,245,989 [1] [3] [5] 441,850 18,981,288 2,290,000 1,003,446 8,332,991 1,895,000 2,163,897 19,409,886 2,315,000 [2] [4] [6] 510,375 2,099, ,250 [2] [4] [6] 2,800, ,994, ,625, ,076,900 7,542,112 17,745,954 [1] [3] [5] 641,128 19,718,028 2,310, ,104 8,455,216 1,955,000 2,227,015 19,972,969 2,360,000 [8] [4] [6] 380,050 2,029, ,800 [8] [4] [6] 2,690, ,984, ,600, ,618,087 6,965,290 16,388,918 [1] [3] [5] 681,553 18,299,640 2,395, ,124 7,681,414 2,030,000 1,417,163 17,806,081 2,410,000 [8] [4] [6] 299,200 1,956, ,400 [8] [4] [6] 2,694, ,986, ,556, ,994,265 5,488,831 10,164,857 [1] [3] [5] 447,262 16,441,527 2,495, ,268 5,744,099 1,025, ,721 10,587,578 2,470,000 [8] [9] [6] 203,400 1,878,695 74,100 [8] [9] [6] 2,698, ,903, ,544, ,903,390 5,800,386 10,970,114 [1] [3] [5] 256,337 17,159,727 2,590, ,116 5,933,502 2,485, ,775 11,337,889 1,405,000 [8] [9][7] [10] [8] 103,600 2,693, ,466,632 [9][7] 3,951, ,469 [10] 1,590, ,172,251 6,222,779 11,210,652 [1] [3] [11] [5] [11] 256,652 18,428,903 N/A 134,035 6,356,814 2,560,000 [7][9] 1,389,207 [7][9] 3,949, ,369 11,512,021 1,290,000 [10] 357,663 [10] 1,647, [1] [2] [3] There was no debt service requirement in [5] Road Sales and Use Tax imposed by the voters in the amount of 0.40% on January 1, The pledged revenue is deposited in [6] [8] Sales and Use Tax Revenue Bonds, Series There was no debt service requirement in Open Space lands portion of 0.17% open space, parks and trails sales and use tax imposed by the voters effective January 1, The pledged revenue is deposited in the Open Space, Trails and Parks Sales and Use Tax Fund. [4] Parks and Open Space Sales and Use Tax Revenue Bonds, Series 1998, Series 1999, Series 2000, Series 2002 and Series [7] Justice Center sales and use tax imposed by the voters in the amount of 0.43% effective January 1, The pledged revenue is deposited in the Justice Center Construction Sales and Use Tax Fund. the Road Sales and Use Tax Fund. Roads Sales and Use Tax Revenue Bonds, Series Open Space Sales and Use Tax Revenue Refunding Bonds, Series Justice Center Sales and Use Tax Revenue Refunding Bonds, Series [9] Parks and Open Space Sales and Use Tax Revenue Bonds, Series 1999, Series 2000 Series 2002 and Series [10] Road Improvement Sales and Use Tax Revenue Bonds, Series 2010 [11] In 2011, started backing out sharebacks to other governments to calculate coverage more accurately. Unaudited - See accompanying independent auditors' report. 130

140 Special Assessment Debt with no Government Commitment Local Improvement Districts, For Fiscal Year 2011 LID Number, Name, Series Principal outstanding as of Principal Total Year of Original December 31, redeemed debt service Final issue 2011 in 2011 in 2011 Maturity 01-01, Country Club Drive, Series 2002B 04-01, Sageport, Series ,555, ,000 80,000 93, ,256 80,017 65,000 69, , Sageport / Inca-Deleware ,636, , , , Total $ 4,114,256 1,086, , ,021 Unaudited - See accompanying independent auditors' report. 131

141 Demographic and Economic Statistics, Last Ten Fiscal Years Public School Personal Total Average School Enrollment Unemploy- Estimated Income Per Personal Median Household Enroll- % of ment Year Population [1] Capita [2] Income [2] Age [1] Size [1] ment[3] Population Rate % [1] ,048 42,474 8,379, , % 2.4% ,942 39,701 8,336, , % 4.9% ,023 39,213 8,702, , % 4.6% ,524 41,136 9,657, , % 4.3% ,988 46,115 11,347, , % 3.6% ,506 50,127 12,993, , % 4.9% ,418 54,261 14,706, , % 3.2% ,780 60,361 16,969, , % 5.1% ,059 59,358 17,108, , % 6.6% ,430 60,723 17,514, , % 6.7% ,083 62,120 18,081, , % 6.1% [1] Douglas County Planning Division Estimates [2] Bureau of Economic Analysis, Washington D.C. [3] Douglas County School District Figures included in this schedule represents the most recent data available. Data is estimated and is subject to change based on updated information and 2011 Personal Income Per Capita and Total Personal income estimated using the 2.3% population change that the Bureau of Economic Analysis office has estimated for the State of Colorado. Unaudited-See accompanying independent auditors' report. 132

142 Principal Employers, Current Year and Ten Years Ago % of % of Total County Total County Employer Employees Rank Employment Employees Rank Employment Douglas County School District 5, % 5, % Echostar Communications 1, % - - CH2M Hill 1, % - - AVAYA 1, % 1, % TW Telecom 1, % 1, % Western Union 1, % - - Douglas County Government 1, % % Healthone: Sky Ridge Medical % - - Sprint Nextel Corporation % Centura: Parker Adventist Hospital % - - Liberty Media Information Handling Services - - 1, % First Data Corporation - - 2, % Merrill Lynch - - 1, % Expanets - - 1, % Nordstrom % Dillards % Total for Principal Employers 16, % 16, % Total Employment in Douglas County as of June 30th 147,954 85,519 Unaudited-See accompanying independent auditors' report. 133

143 Budgeted Full-time Equivalent County Employees by Function/Program, Last Ten Fiscal Years Function/Program General government Board of County Commissioners Clerk and Recorder Treasurer Assessor Finance Human Resources Information Technology Facilities Maintenance Judicial Community Justice Services Public Safety Sheriff Coroner Community Planning & Sustainable Development Planning Administration Planning & Zoning Services Community Services Building Development Services Engineering Traffic Services Parks Administration and Maintenance Park Rangers Economic Development and Assistance Community Development Block Grant Public Works Weed Control Public Works Administration Maintenance of Condition Roads and Bridge Administration Fleet Management Sanitation Operating Health and Human Services Administration Block Grant Non-Block Grant Assistance Other Health Services Senior Services Open Space and Natural Resources Natural Resources Administration Land Maintenance Major Maintenance Patrol Source: Douglas County Budget Division Unaudited-See accompanying independent auditors' report , , , , , , , , ,

144 Operating Indicators by Function/Program Last Eight Fiscal Years Function/Program General government Board of County Commissioners Number of Public meetings held (2) Number of Town(Community) meetings held Number of Resolutions passed Total claims processed by Risk Management Television stations operated External web sites managed Internal web sites managed Clerk and Recorder Motor Vehicle registrations processed 231, , , , , , ,160 Total motor vehicle transactions processed 505, , , , , , ,922 Documents recorded 125, , ,780 88, , ,932 95,174 Marriage licenses issued 1,397 1,384 1,527 1,422 1,458 1,380 1,423 Number of resolutions New and cancelled voter registrations 30,000 24,150 19,556 19,856 14,535 16,451 15,136 Elections supported County Assessor Number of parcels assessed 119, , , , , , ,077 Community Development Total permits issued 10,012 7,309 6,957 5,739 6,377 9,028 7,944 Inspections completed (including DESC) 81,810 67,674 53,587 42,980 30,246 39,144 39,841 Number of CDBG applications received Human Resources Applications processed 4,621 4,927 3,236 3,628 3,435 3,244 3,413 Tuition reimbursement applications (3) HR training participants 1, ,213 1,698 1,138 2,197 1,809 Information Technology Number of PC's supported N/A 1,044 1,072 1,181 1,361 1,398 1,520 Number of support tickets closed N/A 4,500 1,990 4,738 14,527 9,000 16,964 Number of IT projects completed N/A Public safety Sheriff Total crimes reported 13,581 13,666 11,999 11,887 10,524 11,906 11,902 Calls for service 111, , , , ,292 N/A 102,487 Calls for service (citizen-initiated only) N/A 51,175 48,741 48,392 45,638 46,856 47,951 Vehicle Accidents 1,752 1,522 1,233 1,300 1,238 1,257 1,506 Total Civil Process Served 3,322 3,446 3,645 4,196 3,816 3,752 3,389 Jail average daily population (ADP) Number of Bookings 6,347 6,792 6,592 5,948 7,210 5,617 5,565 Coroner Number of cases investigated Autopsies performed Health, welfare and sanitation Human Services CSBG clients served (households) Individuals receiving commodities 9,708 10,584 10,907 6,473 8,723 9,871 11,296 Culture and recreation Parks Administration and Maintenance Park reservations 4,454 7,315 8,055 6,896 6,498 6,627 4,115 Fairgrounds Number of event bookings 1,563 1,674 1,695 1,588 1,644 1,662 1,868 Economic Development and Assistance Number of groups serving as liaison to N/A (1) Source: Various County Agencies. Note: (1) Economic Development and Assistance was started in May, (2) Schedule was changed to bi-weekly meetings in (3) Tuition Reimbursement Program was suspended for Unaudited - See accompanying independent auditor's report. 135

145 Capital Asset Statistics by Function/Program, Last Eight Fiscal Years Function/Program General government Facilities Maintenance Facility square footage 697, , ,083 1,087,353 1,096,057 1,096,410 1,102,950 1,137,950 Number of facilities Highways and Streets Public Works Administration Center line miles maintained (primary) Center line miles maintained (secondary) Lane miles maintained (primary) Lane miles maintained (secondary) 1,421 1,456 1,502 1,517 1,454 1,453 1,492 1,527 Fleet Management Numbers of vehicles / equipment Culture and recreation Parks Administration and Maintenance Local parks (acres) Regional parks (acres) ,120 1,120 Softball/baseball fields Multi-purpose fields (soccer/football) Volleyball courts Basketball courts Playgrounds ' Concrete trail (miles) N/A N/A ' Crusher fine trail (miles) N/A N/A Open Space Open space preserved (acres) 43,202 43,458 43,872 44,452 45,069 45,840 46,220 48,356 Miles of soft-surface trails maintained/patrolled Parcels owned/maintained/patrolled in subdivisions Trailheads maintained/patrolled Source: Various County Agencies. Unaudited-See accompanying independent auditors' report. Open Space # of acres have been recalculated back to

146 137