state of california - monterey county, ca of california comprehensive annual ... from big sur’s...

County of Monterey State of California

COMPREHENSIVE ANNUAL

FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2010

Prepared and Submitted by the Office of the Auditor-Controller Michael J. Miller, CPA, CISA

Monterey County Districts The County of Monterey districts pictured on the cover clockwise from the top right: District 3, District 1, District 2, District 5, District 4. Monterey County highlights everything that's best about California. From Monterey’s seaside restaurants to the Salinas Valley’s hillside vineyards, from Big Sur’s redwood groves to Pebble Beach’s perfectly groomed golf courses, from Salinas’ old-fashioned rodeo to Carmel-by-the-Sea’s elite music and art festivals, Monterey County has a feast of fun just waiting to be sampled. Monterey offers iconic California experiences. Experience the top road trip in the United States as you wind along the breathtaking Big Sur coastline on Highway One. Sip handcrafted wines at tucked-away tasting rooms. Take a surfing lesson and catch a glimpse of a barefoot beach wedding as you ride your board to shore or play 18 holes at legendary golf courses. Monterey County has a little something special for everyone. Monterey County's hundreds of thousands of acres of parks range from the “mini-Yosemite” of Pfeiffer Big Sur State Park to the austere beauty of Pinnacles National Monument, the coastal beauty of Point Lobos State Reserve and everything in between. Walk or ride your bike on the Monterey Bay Coastal Recreation Trail, which stretches 18 miles along the coast and connects many of the coastal parks. Go hang gliding, mountain biking, camping, horseback riding, surfing, birding, diving and more at the more than 30 parks in Monterey County.

*Registered Voters:

**County Road Mileage: ***Acres:

DISTRICT #1 17,528 0.00 5,845DISTRICT #2 34,551 239.93 108,110DISTRICT #3 20,478 691.17 1,506,689DISTRICT #4 33,623 31.45 53,875DISTRICT #5 52,381 277.92 452,840TOTAL: 158,561 1,240.47 2,127,359Source: *Monterey County Elections Department, 2009 **Monterey County Public Works Department , 2009 ***Monterey County Building Services and Planning Department, 2007

Cover photographs courtesy of Ma Mon

COUNTY of MONTEREY

STATE of CALIFORNIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the Fiscal Year Ended June 30, 2010

Prepared and Submitted by the Office of the Auditor-Controller Michael J. Miller, CPA, CISA

This page is intentionally left blank.

COUNTY OF MONTEREY COMPREHENSIVE ANNUAL FINANCIAL REPORT

For the Year Ended June 30, 2010

Table of Contents

Page INTRODUCTORY SECTION Letter of Transmittal .......................................................................................................................... i-ix Awards for Achieving Excellence in Financial Reporting ................................................................ x-xi Directory of County Officials ............................................................................................................ xii Organizational Structure .................................................................................................................... xiii FINANCIAL SECTION Independent Auditor’s Report ............................................................................................................ 1-2 Management’s Discussion and Analysis (Required Supplementary Information) ............................ 3-16 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets ........................................................................................................... 19 Statement of Activities ............................................................................................................. 20-21 Fund Financial Statements: Governmental Funds: Balance Sheet ...................................................................................................................... 24-25 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets – Governmental Activities .......................... 26 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 28-29 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities – Governmental Activities ........................................................... 30 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: General Fund ....................................................................................................................... 31 Road Fund ........................................................................................................................... 32 Community Development ................................................................................................... 33 Proprietary Funds: Statement of Net Assets ...................................................................................................... 34 Statement of Revenues, Expenses, and Changes in Net Assets .......................................... 35 Statement of Cash Flows ..................................................................................................... 36-37 Fiduciary Funds: Statement of Fiduciary Net Assets ...................................................................................... 38 Statement of Changes in Fiduciary Net Assets ................................................................... 39 Notes to the Financial Statements ................................................................................................. 41-88



Table of Contents

Page FINANCIAL SECTION (continued) Required Supplementary Information (Other than MD & A): Schedules of Funding Progress County of Monterey Employees’ Retirement Plan .................................................................. 91 County of Monterey Retiree Healthcare Plan .......................................................................... 92 Supplementary Information: Nonmajor Governmental Funds: Combining Balance Sheet ...................................................................................................... 97 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............... 98 Special Revenue Funds: Nonmajor Special Revenue Funds: Definition .......................................................................................................................... 99-100 Combining Balance Sheet ................................................................................................. 101-105 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......... 106-110 Budgetary Comparison Schedules: County Library Fund .................................................................................................... 111 In-Home Support Services ........................................................................................... 112 Fish and Game Propagation ......................................................................................... 113 Office of Employment Training ................................................................................... 114 Community Services .................................................................................................... 115 Inclusionary Housing ................................................................................................... 116 Disaster Assistance ....................................................................................................... 117 Productivity Investment ............................................................................................... 118 Lakes Resort Parks ....................................................................................................... 119 Emergency Medical Services ....................................................................................... 120 Fort Ord Reuse ............................................................................................................. 121 Nacimiento Hydroelectric Operations .......................................................................... 122 Water Resources Agency ............................................................................................. 123 County Service Areas ................................................................................................... 124 Sanitation Districts ....................................................................................................... 125 Redevelopment Agency – Set Aside Fund ................................................................... 126 Debt Service Funds: Nonmajor Debt Service Funds: Definition .......................................................................................................................... 127-128 Combining Balance Sheet ................................................................................................. 129 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......... 130 Budgetary Comparison Schedules: Debt Service – County ................................................................................................. 131 Debt Service – RDA ..................................................................................................... 132 County Financing Authority ......................................................................................... 133 Public Improvement Corporation ................................................................................. 134 Capital Projects Funds: Definition ............................................................................................................................... 135-136 Major Capital Projects Funds: Budgetary Comparison Schedule – Facility Master Plan ................................................. 137



Table of Contents Page FINANCIAL SECTION (continued) Supplementary Information (continued) Capital Projects Funds: Nonmajor Capital Projects Funds: Combining Balance Sheet ................................................................................................. 138-139 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......... 140-141 Budgetary Comparison Schedules: Capital Projects............................................................................................................. 142 Enterprise Resource Planning ...................................................................................... 143 Facilities Maintenance Projects .................................................................................... 144 Other Water Resources Agencies ................................................................................. 145 NGEN Radio Project .................................................................................................... 146 Redevelopment Capital Projects................................................................................... 147 Internal Service Funds: Definition ............................................................................................................................... 149-150 Combining Statement of Fund Net Assets ............................................................................. 151 Combining Statement of Revenues, Expenses and Changes in Net Assets ........................... 152 Combining Statement of Cash Flows ..................................................................................... 153 Agency Funds: Combining Statement of Changes in Assets and Liabilities .................................................. 157-158 Detailed Budget Schedule: General Fund – Schedule of Expenditures – Budget and Actual on Budgetary Basis ................................................................................................................... 161-163 STATISTICAL SECTION (Unaudited) Statistical Section ................................................................................................................... 165 Schedule 1: Net Assets by Component ............................................................................... 167 Schedule 2: Changes in Net Assets ..................................................................................... 168-169 Schedule 3: Fund Balances of Governmental Funds .......................................................... 170 Schedule 4: Changes in Fund Balances of Governmental Funds ........................................ 171 Schedule 5: Assessed Value and Actual Value of Taxable Property .................................. 172 Schedule 6: Principal Property Taxpayers .......................................................................... 173 Schedule 7: Property Tax Levies and Collections .............................................................. 174 Schedule 8: Debt Service Tax Rates for County and Major Overlapping Governments per $100 of Assessed Value .................................................... 175-176 Schedule 9: Taxable Sales by Category .............................................................................. 177 Schedule 10: Transient Occupancy Tax Actual Receipts ..................................................... 178 Schedule 11: Ratios of Outstanding Debt by Type ............................................................... 179 Schedule 12: Legal Debt Margin Information ...................................................................... 180 Schedule 13: Pledged Revenue Coverage .............................................................................. 181 Schedule 14: Direct and Overlapping Bonded Debt ............................................................. 182 Schedule 15: Demographics and Economic Statistics .......................................................... 183 Schedule 16: Major Industries by Number of Businesses, Employees and Payroll .............. 184



Table of Contents

Page STATISTICAL SECTION (Unaudited) (continued) Schedule 17: Full-Time Equivalent County Government Employees by Function/Program .......................................................................................... 185 Schedule 18: Operating Indicators by Function/Program ..................................................... 186-189 Schedule 19: Capital Asset Statistics by Function ................................................................ 190-191

INTRODUCTORY SECTION

M

(831) MIAUDI

ALFASSIS

MONTE

) 755-5040 ▪ FAX (831)

CHAEL J. MILITOR-CONTROLLER

FRED R. FRIEDSTANT AUDITOR-CONTR

To the C I am ple(CAFR) above an It is mySupervisand to futhe Coun This CAFof Califoreport onconformaindependgovernmthese req This repoControllepresentedassuranceCounty consists systems statemen The finanin this CPublic Aauditors accompa

EREY

AUDITOR 755-5098 ▪ P.O. BOX 3

LLER, CPA, CIS

RICH, CGFM ROLLER

itizens of the

eased to prefor the Cou

nd beyond wh

y hope that ors, and oth

urther assist nty.

FR is in comornia. Thesen the financiaance with gedent firm of

ment auditingquirements.

ort contains er. Montered data, and e of accuracassets, manof policies, sufficient to

nts in conform

ncial statemCAFR have Accountants

have concluanying Notes

COUN

- CONTRO390 ▪ SALINAS, CALIF

SA

e County of

esent this Funty of Monhat is requir

this reporther users a bthe users of

mpliance wit statutes reqal position anenerally accecertified pub

g standards (G

managemeney County m

the completcy of the infnagement ha

procedures o ensure relimity with GA

ments and accbeen audite(GALLINA)uded, based s present fai

NTYOLLER

FORNIA 93902

Monterey an

Fiscal Year nterey(Couned by genera

t will give broader viewf our financi

th Sections 2quire all gennd activitiesepted accoublic accountGAGAS). T

nt representamanagement

teness and fformation pras instituted

and compuiable informAAP.

companyinged by GALL). Their audon their aurly, in all m

i

nd the Board

2009-10 Conty). This CAally accepted

the residenw and underial statement

25250 & 252neral-purposs of that goveunting principtants (CPA) he financial

ations and is(managemenfairness of tresented in td an internauter-based acmation for th

Notes to thLINA LLP, dit was perfoudit that the material respe

d of Supervi

omprehensivAFR is inted accounting

nts of Montrstanding of ts in assessi

253 of the Gse local government. Thples (GAAPin conformastatements c

s prepared bnt) is responthe presentathese financal control fccounting anhe preparatio

he financial sa Profession

ormed in accfinancial st

ects, the fina

De

isors:

ve Annual Fended to preg principles o

terey Countf County finang the finan

Government Cvernments tohe report musP) and must ance with gecontained in

by the Officensible for theation. To proial statemen

framework. nd managemon of the C

statements (Nnal Corporacordance wiatements coancial condit

ecember 17,

Financial Resent informor state law.

y, the Boarancial opera

ncial conditio

Code of the o issue an anst be presentbe audited benerally accen this CAFR

e of the Aude accuracy oovide reason

nts and to prThis frame

ment informounty’s fina

Notes) contaation of Cerith GAGAS

ombined wittion of Mon

2010

Report mation

rd of ations on of

State nnual ted in by an epted meet

ditor-of the nable rotect ework

mation ancial

ained rtified . The th the nterey

ii

County as of June 30, 2010. A copy of their report is included on page 1 in the “Financial Section” of this CAFR. In planning and performing the audit of the financial statements, GALLINA considered the internal control structure of the County in order to determine appropriate audit procedures. During this review, no significant deficiencies or material weaknesses were noted. All fiscal year 2008-09 findings were implemented and corrected. This information was presented in a letter to the Board of Supervisors and management. Management is required by GAAP (GASB 34) to provide a management discussion and analysis (MD&A) in conjunction with financial statement reporting. The purpose of the MD&A is to introduce the basic financial statements and to provide an analytical overview of the financial activities of the County. The MD&A begins on page 3 in the “Financial Section” of this CAFR.

PROFILE OF THE COUNTY OF MONTEREY

Overview of the County History and Geography: Monterey, described as the “greatest meeting of land and sea” celebrated its quadricentennial in 2002. In 1602, Spanish merchant Sebastian Vizcaino became the first European on the Monterey Peninsula. He christened Monterey after the viceroy of New Spain, Count de Monte Rey. Eventually, the City of Monterey served as California’s first capital, where the State constitution was signed in 1849. Monterey County is one of the 27 original California counties, incorporating in 1850. With an area of about 3,300 square miles, the County of Monterey borders the Pacific Ocean almost at the midpoint of California with 99 miles of coastline. The County is located about 100 miles south of San Francisco and 240 miles north of Los Angeles. It is bordered by Santa Cruz County to the north, San Benito (originally part of Monterey County), Fresno and Kings Counties to the east and San Luis Obispo County to the south. There are two distinct sub-regions in the County. One is the Monterey Peninsula, world famous for beautiful ocean views, opulent homes, the 17-mile drive, delicious seafood and world-class golf courses. The other, the Salinas Valley, is equally renowned as an area full of fertile farmland, running almost the entire length of the County and is one of the world’s major vegetable producing areas. The County also benefits from two wilderness areas set aside for recreational enjoyment, consisting of 468,538 total acres. The Los Padres National Forest has 304,035 acres and the Ventana Wilderness totals 164,503 acres. Structure: The County is a general law county. The County government is comprised of ten elected officials including a five-member Board of Supervisors, the Assessor-Clerk-Recorder, the Auditor-Controller, the District Attorney, the Sheriff and the Treasurer-Tax Collector; all

iii

elected to four-year terms. A County Administrative Officer (CAO) is appointed by the Board of Supervisors and functions as the Chief Executive Officer. The accounts of the County are organized on the basis of funds, each of which is considered a separate entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, net assets, revenues and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which the spending activities are controlled. Services: The County government provides a full range of public services including public safety, roads and facilities, social services, administrative services, health services, sanitation services and leisure services. Typically, the department heads who run these operations, other than the elected department heads, report to the CAO. Population: The County maintains a steady population base in excess of 400,000 people. About 98% of the 3,300 square miles in the County are outside of a municipality, with about 25% of the residents living in these unincorporated areas. The City of Salinas serves as the County seat, and is the County’s largest city with a population of over 150,000. The eleven other incorporated cities are Carmel-by-the-Sea, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Sand City, Seaside, Soledad and Pacific Grove. Component Units This report includes all of the funds of the County of Monterey, Natividad Medical Center, and the entities described in Note 1 of the Notes. Although all these entities (except for Natividad Medical Center) are legally separate from the County, the County Board of Supervisors serve as the governing board of each entity and the entities meet the test required by GAAP to be presented as blended component units in the County Financial Statements except for the Children and Family Commission which is a discretely presented component unit of the County. In addition, individual financial statements are available for many of the above component units and can be obtained by contacting the Office of the Auditor-Controller of the County of Monterey. Budgetary Process The County is required by State law to adopt a balanced budget by July 1 of each fiscal year. Budgets are adopted for the general fund, special revenue funds, debt service funds and capital project funds. The legal level of budgetary control is at the Appropriations Unit level. Budget data is prepared on the modified accrual basis consistent with comparable actual amounts. A budget is also adopted for the enterprise fund (Natividad Medical Center) and the internal service funds. Encumbrance accounting is utilized during the year for budget control purposes. Encumbrances outstanding at year-end do not constitute expenditures or liabilities, but rather restrictions (reserves) of net assets. The County does, however, honor the contracts represented by year-end

iv

encumbrances. Unencumbered budget appropriations lapse at the end of the fiscal year. Board of Supervisors policy requires re-appropriation of carryover capital improvement projects on an annual basis after review of each project status. The Board approves supplemental appropriations, which are normally financed by unanticipated revenues during the year.

FACTORS AFFECTING FINANCIAL CONDITION

State of California Budgetary difficulties: California has experienced steep declines in revenues from personal income tax, corporate tax, and sales tax, three of its main revenue sources. To mitigate this loss of revenue, the State has imposed temporary tax increases, claimed portions of local property tax revenues, and cut allocations to counties during the last two years. With the State facing a potential deficit of almost $20 billion in 2010-11, counties can expect more cuts in the next fiscal year. Additionally, as local revenue sources decline, the County will also experience losses in American Recovery and Reinvestment Act (ARRA) funding as the 18 month Federal stimulus program comes to an end in 2010. This may affect the County’s abilities to administer State and local services. Local Economy The local economy has traditionally centered on agribusiness, tourism, and government, but the trade, transportation and utilities group continues to become a larger part of the Monterey County economy. Agribusiness: Agribusiness is the County’s No. 1 industry, with a gross production value in excess of $4 billion. In terms of land allocation, out of 2,121,126 acres in the County, approximately 300,000 acres are prime farmland. Employment in this sector shows an increase of 1,300 from January 2009 to January 2010. Tourism: As the No. 2 industry in Monterey County, hospitality generated approximately $2.0 billion. However, the economic downturn has negatively impacted the amount of Transient Occupancy Tax (TOT) by 12.9% from FY 2008-09 to FY 2009-10, continuing the trend that began in 2008. The attractions in the Monterey Peninsula should cause tourism to rebound quickly as the economic downturn abates. Employment: The County normally experiences periods of relatively high unemployment as the agribusiness moves from one season to the next. However, the unemployment rate has been higher than normal at approximately 10.7% as of June, 2010, an adjusted increase of .8% over June of 2009. While this is still lower than the State average of 12.2%, it continues to be a condition that is the result of the economic downturn.

v

Real Estate / Housing: During the housing boom, the County experienced an unprecedented growth in the value of homes, with homes in some areas seeing an appreciation in excess of 150%. At the collapse of the market in the last three to four years, prices and sales plummeted. The median price has started to rebound. A median home price comparison of June 2009 to June 2010 show a 36% increase from $205,000 to $279,500. However, the number of sales in the same months shows a decrease of 32%. Long-Term Financial Planning Three-Year Financial Forecast: In order to provide County policy-makers and the public an updated assessment of the County’s financial conditions, the County Office of Administration develops an annual Three-Year Financial Forecast. This report takes into account the latest economic developments, and includes historical perspective on General Fund revenues and expenditures, an updated current year estimate, and three-year financial outlook. Capital Improvements Plan: In March 2010, the Monterey County Board of Supervisors unanimously approved and accepted the annual Capital Improvements Program (CIP) Five Year Plan, covering fiscal years 2010-11 through 2014-15. The CIP identified collectively a total of 172 capital projects with an estimated value of $1.02 billion over the next five-year period. Of this total amount, $205 million, or 20%, in funding sources have been identified. The remaining $816 million are recognized as unfunded. The FY 2010-11 CIP capital projects requests (in millions) by functional area are: General Government - $121.4 Public Protection - $274.3 Public Ways & Facilities - $529.8 Health - $30.0 Public Assistance - $0.2 Recreation & Education - $65.9 Debt Administration: In fiscal year 2009-10, the County implemented the interface with the Sympro Debt Management System to monitor and manage the debt for the County, schools and special districts. This tool will readily assist management to develop scenarios, and monitor market activities, and also capitalize on financial opportunities. County Debt Obligations: The County entered into two debt issuances in fiscal year 2009-10. • A Tax and Revenue Anticipation Note (TRAN) was issued through the California State

Communities Development Agency (CSCDA) on July 1, 2009 for $55 million. This TRAN was promptly paid with principal and interest on the maturity date.

• On December 30, 2009, a partial refunding of $43,700,000 of the outstanding Natividad Medical Center 1998 Series E Certificates of Participation took place with the issuance of new debt – 2009 Refunding Project. The partial refunding resulted in cash savings of $1,495,140 over the term of the bonds, equating to present value savings of $1,380,741 or 3.16% of the refunded principal. Unfortunately, at pricing, the maturities for years 2024 thru 2027 were unsold due to an upsurge in the long end of the yield curve. The County remained poised to

vi

take advantage of additional savings through refunding those maturities however such savings did not materialize during FY 2010.

Credit Ratings: The County utilized Standard and Poor’s and Fitch to provide credit ratings of the refunding. The County’s previously existing bond issuances were subjected to a follow-up review by both Fitch and Moody’s Investor Services at the end of FY 2009-10. During the year, Fitch and Moody’s adjusted their ratings scale which upgraded the County’s COP ratings. During the Fitch annual review, the county outlook was upgraded from Negative to Stable:

Fitch Rating/Outlook

Moody’s Rating/Outlook

S&P Rating/Outlook

General Obligation Bonds

Aa2/Negative

Judgment obligation Bonds

Aa3/Negative

Lease Obligation Bonds (COPs)

AA-/Stable A1/Negative AA/Stable

Short Term Mig-1 SP1+ The County continues developing strategies to aggressively improve the efficiencies and effectiveness of operations, and capitalize on these re-engineering efforts to improve its finances. Proposed and Subsequent Financings: The County has closed two financings since year end. A TRAN was issued on August 24, 2010 in the amount of $40 million as a stand alone tranche of the CSCDA. The Monterey County’s offering was purchased by several bidders with a coupon rate of 1.5% and a yield of 0.33% resulting in a premium to the County. The County closed a refunding of the remaining $16,800,000 of 1998 Natividad Medical Center Improvement Bonds, Series E which were not refunded in 2009. This refunding resulted in actual cash savings of $1,229,865 and a present value savings of $927,146 or 5.52%. The County recently approved two additional projects. The Next Generation radio infrastructure project will enable Monterey County safety radio and data interconnectivity to comply with the narrowband mandate set by the FCC by January 2013. The project is being slated for a private placement lease transaction in the amount of $8.5 million to allow for compliance with numerous grant funding requirements and to allow for the assumption of the liability by a JPA which may possibly be formed sometime in the future. The County will act as lead borrower pursuant to a MOU among the various cities and safety agencies throughout the County. Each participant will pay their proportionate share of the construction costs determined by radio capacities on the system. In addition, Natividad Medical Center’s lease financing in the amount of $15 million will obtain (and reimburse for prior expenditures related to) medical equipment, electronic health records software, seismic retrofits, and other projects contained in its five year Capital Improvement Plan.

vii

Relevant Financial Policies Reserve Policy: The Monterey County Board of Supervisors unanimously adopted in ordinance form a formal reserve policy for strategic reserves and contingencies. Beginning in fiscal year 2005-06, General Fund reserves were to be funded over eight years to equal ten percent of General Fund budgeted revenues. The reserve was established for use in legal judgment settlements against the County, economic downturns, natural disasters and for one-time State budget reductions that could not be addressed through the annual appropriations for contingencies. Because of current budget issues, the Board elected to suspend contributions to the strategic reserve fund for fiscal year 2008-09. On June 23, 2009, the Board again elected to continue suspension of the annual contribution to the Strategic Reserve in FY 2009-10 for the same reasons. Public Financing Policy: On April 29, 2008, the Board rescinded the previously adopted Public Financing Policies and the Mello Roos Financing Policy and adopted a revised formal written Monterey County Public Financing Policy dated April 21, 2008. The revised policy established a Debt Advisory Committee comprised of the County Administrative Officer (or his designee), the County Auditor, and the County Treasurer-Tax Collector to provide additional oversight of debt related matters. In addition, the policy provides general guidelines for the decision making process with regard to the issuance of debt instruments. The use of debt must provide general or specific benefits to its citizens in relation to the cost of repayment levied upon those citizens. Funding Plan: In fiscal year 2004-05, the County approved a 10 year plan to fund the deficit in the self insured Workers’ Compensation Fund. The County approved a one year postponement to this plan in fiscal year 2010-11, which may increase the deficit in the fund. The County anticipates continuing the funding plan starting in fiscal year 2011-12. Major Initiatives: The Next Generation Radio System: This project will bring the County and municipal law enforcement, fire, emergency services, and local government field forces into compliance with the Federal Communications Commission (FCC) regulations. The County plans on completing this project by 2013 and terminating the use of all obsolete band width as mandated by the FCC rules. The County is exploring financing alternatives for the Project. Once the contract for design and build of the infrastructure is awarded, the participants will determine the best method of financing. Natividad Medical Center The Natividad Medical Center (NMC) is a 172 bed inpatient hospital facility that operates with a medical staff of over 235 physicians. The mission of NMC is to provide high-quality healthcare access to all patients regardless of their ability to pay. Natividad is the only teaching hospital on the Central Coast and is one of the 15 California safety net hospitals that, combined, provide 50% of all hospital care for California’s 6.6 million uninsured.

viii

In fiscal year 2009-10, NMC expanded access to health care by increasing staffing and services in Pediatric, Obstetrics, Family Medicine, Orthopedics and Internal Medicine as well as implementing new clinical information technology systems to enhance patient care deliveries. NMC’s fiscal performance has continued to progress over the last three years and did not need, or receive, a contribution from the General Fund in fiscal year 2009-10. ADDITIONAL AVAILABLE INFORMATION Copies of this CAFR, the Single Audit Report, the County Proposed and Final Budgets, the Tax Rate Books, and other documents are available on the internet, www.co.monterey.ca.us/auditor.

AWARDS AND ACKNOWLEDGEMENTS

Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County of Monterey for its comprehensive annual financial report for the fiscal year ended June 30, 2009. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report 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 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. The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The GFOA is a nonprofit professional association serving approximately 17,600 government finance professionals with offices in Chicago, IL and Washington, DC.

xii

COUNTY OF MONTEREY

DIRECTORY OF COUNTY OFFICIALS

Elected Officials: Legislative Branch: Board of Supervisors District #1.......................................................................................... Fernando Armenta District #2........................................................................................... Louis R. Calcagno District #3..................................................................................................Simon Salinas District #4...................................................................................................... Jane Parker District #5......................................................................................................Dave Potter

Executive Branch: Assessor – County Clerk-Recorder .................................................. Stephen L. Vagnini Auditor-Controller ................................................................ Michael J. Miller, CPA, CISA District Attorney ..................................................................................... Dean D. Flippo Sheriff-Coroner ...................................................................................... Mike Kanalakis Treasurer-Tax Collector ......................................................................... Louis G. Solton

Appointed Department Heads: County Administrative Officer .................................................................. Lew Bauman Agricultural Commissioner .......................................................................Eric Lauritzen Building Services Director ....................................................................Tim McCormick Child Support Services Director .................................................... Stephen H. Kennedy Clerk of the Board .................................................................................. Gail Borkowski Cooperative Extension Director ............................................ Sonya L.Varea-Hammond County Counsel ................................................................................... Charles J. McKee County Librarian ................................................................................. Jayanti Addleman Emergency Communications Director ...................................................... Lynn Diebold Equal Opportunity Officer ..................................................................... David Medrano Health Services Director ................................................................................ Len Foster Information Technology Director ............................................................ Virgil Schwab Military and Veterans’ Affairs Officer .................................................... Richard Garza Natividad Medical Center Chief Executive Officer ...................................... Harry Weis Parks Director .................................................................................................John Pinio Planning Director .......................................................................................... Mike Novo Public Defender ............................................................................................ James Egar Public Works Director ............................................................................ Yazdan Emrani Registrar of Voters ....................................................................................... Linda Tulett Resource Management Agency Director .................................................. Wayne Tanda Social Services Director ........................................................................ Elliott Robinson Water Resources Agency General Manager .............................................. Curtis Weeks

Appointed by Superior Court: Chief Probation Officer ............................................................................... Manuel Real

xiv


FINANCIAL SECTION

BC WtfJoMoCptd WAipmbeAsaoo Iaaatbc

Board of SupCounty of M

We have autype activitiefund informJune 30, 201of contents. Monterey, Cour audit. WCommissionpresented cothereon has bdiscretely pre

We conducteAmerica andssued by th

perform the material misbasis for desexpressing aAccordinglysupporting thaccounting poverall finanopinion.

In our opinioabove presenactivities, theaggregate remthe respectivbudgetary coconformity w

pervisors Monterey, Ca

dited the aces, the discr

mation of th0, which coThese finan

California. OWe did not n, which repomponent unbeen furnishesented com

ed our audit d the standarhe Comptrol

audit to obstatement. Aigning audit

an opinion o, we expreshe amounts principles usncial stateme

on, based onnt fairly, ine business-tymaining funve changes omparisons fwith account

INDE

lifornia

ccompanyingetely presene County ollectively concial statem

Our responsibaudit the fin

present 100 nit. Those hed to us, an

mponent units

in accordancrds applicabller Generalbtain reasonaAn audit inct procedures on the effecss no such and disclosused and signent presentat

n our audit an all materiaype activitiend informatio

in financiafor the Geneting principle

EPENDENT

g financial snted componof Montereyomprise the

ments are thbility is to enancial statepercent of

financial stand our opinis, is based so

ce with audible to financil of the Uniable assuranludes considthat are app

ctiveness of opinion. An

ures in the finificant estimtion. We be

and the reporal respects, s, the discreon of the Co

al position aeral Fund andes generally

1

T AUDITOR

statements onent unit, eacy, CaliforniaCounty’s ba

he responsibexpress opinements of th

the assets, atements weions insofar olely on the

iting standarial audits coited States. nce about wderation of ipropriate in tthe County

n audit inclinancial statemates madelieve that ou

rts of other the respecttely presenteounty of Moand cash flod major specaccepted in

R’S REPOR

of the governch major funa (County), asic financialility of the

nions on theshe Monterey

liabilities, ere audited as they relareport of the

rds generallyontained in G

Those stanwhether the internal contthe circumst

y’s internal cludes examiements. An by manageur audit pro

auditors, thetive financiaed componeonterey, Caliows, where cial revenuethe United S

925 Highland Ptel: 916.784

RT

nmental actind, and the as of and

l statements managemen

se financial y County Chand revenuby other auated to the ae other audit

y accepted inGovernment

ndards requirfinancial statrol over fintances, but ncontrol overining, on a audit also in

ement, as wovides a reas

e financial stal position ont unit, eachifornia, as o

applicable, funds for thStates of Am

Pointe Drive, Suit4.7800 fax: 91

ivities, the baggregate refor the yeaas listed in

nt of the Cstatements b

hildren and ues of the duditors, whoamounts incltors.

n the United Auditing St

re that we patements are

nancial repornot for the pur financial rtest basis,

ncludes asseell as evalusonable basi

tatements reof the goveh major fundf June 30, 2, and the rehe year then merica.

te 450, Roseville,16.784.7850 w

business-emaining ar ended the table ounty of based on Families

discretely se report luded for

States of tandards, plan and e free of rting as a urpose of reporting. evidence

essing the ating the s for our

eferred to ernmental d, and the 2010, and espective ended in

CA 95678-5418 www.gallina.com

Board of County o In accordour reporcontrol oregulatioour testintesting, acomplianAuditing The Maninformatistatemenaccepted consistedpresentatinformati Our audicollectivecombininpresentedstatemenbudget scbasic finato the banot beenstatemen

RosevilleDecembe

f Supervisorsof Monterey,

dance with Grt dated Dec

over financians, contractsng of internand not to pnce. That repStandards a

nagement’s ion, as liste

nts but are sin the Unit

d principallytion of the ion and expr

it was conduely comprisng and indivd for purpos

nts. The comchedules havancial statem

asic financialn subjected nts and, accor

e, Californiaer 17, 2010

s , California

Governmentcember 17, 2al reporting s and grant a

nal control oprovide an port is an intand should b

Discussioned in the tabsupplementarted States oy of inquirie

required sress no opini

ucted for thse the Couvidual fund ses of additi

mbining and ve been subjments and, inl statements to the aud

rdingly, we

a

t Auditing St2010, on ourand our test

agreements. over financiaopinion on

tegral part ofbe considered

n and Analyble of contery informatif America. es of managsupplementaion on it.

e purpose ounty’s basic

financial stional analysiindividual fuected to the n our opiniotaken as a w

diting proceexpress no o

2

tandards, wr consideratits of its comThe purposeal reporting the internal

f an audit ped in assessin

ysis (MD &ents, are noion requiredWe have ap

gement regarary informat

of forming oc financial tatements anis and are n

fund financiaauditing pron, are fairly whole. The idures applie

opinion on th

we have also ion of the Co

mpliance wite of that repoand compli

l control overformed in ang the results

& A) and t a required

d by the accpplied certairding the mtion. Howev

opinions on statements.

nd schedulenot a requireal statementocedures appstated in all

introductoryed in the ahem.

issued undeounty of Moh certain proort is to desciance and th

ver financialaccordance ws of our audit

the requiredd part of thcounting prinin limited pr

methods of mver, we did

the financia The intros, and statis

ed part of ths and scheduplied by us il material re

y and statistiaudit of the

er separate conterey’s intovisions of cribe the scohe results ofl reporting owith Governt.

d supplemee basic financiples generocedures, wmeasurementd not audit

al statementsoductory secstical sectionhe basic finaules and detin the audit ospects in relcal sections e basic fina

cover ternal laws,

ope of f that or on nment

entary ancial erally which t and t the

s that ction, n are ancial tailed of the lation have

ancial

COUNTY OF MONTEREY MANAGEMENT’S DISCUSSION AND ANALYSIS

3

This section of the County of Monterey’s (County) annual report presents the discussion and analysis of the County’s financial performance during the fiscal year that ended on June 30, 2010. Please read it in conjunction with the transmittal letter at the front of this report and the County’s financial statements, which follow this section. All amounts, unless otherwise indicated, are expressed in millions of dollars. FINANCIAL HIGHLIGHTS

• The assets of the County exceeded its liabilities at the close of the fiscal year by $727.3 (net assets). Of this amount, $71.9 represents unrestricted net assets, which will be available to meet the County’s ongoing obligations to citizens and creditors. Restricted net assets of $106.8 may be used for the County’s ongoing obligations related to programs with external restrictions. The remaining $548.6 represents the County’s investment in capital assets, less any related outstanding debt used to acquire those assets (invested in capital assets, net of related debt). (See Table 1 – Net Assets.)

• The County’s total net assets decreased by $9.9 during the current fiscal year. The

decrease in net assets represents the degree to which expenses exceeded revenues by $5.7. The remaining decrease of $4.2 includes a transfer of $2.1 in Courts Facilities to the State and a Supplemental ERAF payment of $2.1. (See Table 1 – Net Assets and Table 2 – Change in Net Assets).

• As of June 30, 2010, the County’s governmental funds reported total ending fund

balances of $200.7. The decrease of $43.1 is due to the use of fund balances in current year to cover operations as revenues decreased, especially for Facilities Master Plan Projects $16.0 and Capital Projects $19.3. Approximately 86.2%, or $173.1, of this total amount is available for spending (unreserved fund balance). $62.2 of the unreserved balance is for capital projects, $35.6 is for special revenue fund purposes and $0.7 is for debt service. Of the remaining $74.6 unreserved fund balance, $1.9 is earmarked by management for self-insurance purposes, and $58.8 is designated by the Board of Supervisors for future plans or projects. Please refer to Note 10 for more specific details. (See further discussion in Financial Analysis of the County’s Funds beginning on page 11.)

• At the end of the current fiscal year, the General Fund showed $74.6 in unreserved

fund balance, which is a decrease of $6.1 or a negative 7.6% from the prior year unreserved fund balance. (See further discussion in Financial Analysis of the County’s Funds beginning on page 11.)

• The total long-term debt for the current fiscal year decreased by $11.1 or 3.8% due to

principal payments on debt. (See Table 4 – Long-Term Debt on page 15.)


4

OVERVIEW OF THE FINANCIAL STATEMENTS Management’s discussion and analysis is intended to serve as an introduction to the County’s financial statements. The County’s financial statements include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to financial statements. Government-wide financial statements The Government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private-sector business and are presented on a full accrual basis. The statement of net assets presents information on all of the County’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The statement of activities presents information showing how the County’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g. uncollected taxes and earned, but unused, vacation leave). The government–wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County are: administration and support, public safety and protection, public ways and facilities, health and sanitation, public assistance, education, and recreation and cultural services. The County has one business-type activity: Natividad Medical Center. Component units consist of legally separate entities for which the County is financially accountable. Those entities that have substantially the same governing board as the County or provide services entirely to the County are blended as if they were a part of the County. The County has seven blended component units (See Note 1 in the Notes to Financial Statements for more details). Financial information on discretely presented component units is reported separately from the financial information presented for the County. The County has one discretely presented component unit. The government-wide financial statements can be found on pages 19 – 21 of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental, proprietary, and fiduciary.


5

Governmental funds 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 fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the County’s near-term financing decisions. Both the governmental funds’ balance sheet and the governmental funds’ statement of revenues, expenditures, and changes in fund balances provide a reconciliation to the government-wide financial statements in order to facilitate this comparison between governmental funds and governmental activities. The County maintains over 130 individual governmental funds. For financial reporting purposes, these funds have been combined into five groupings. The County segregates within the governmental funds the major funds: General Fund, Road Fund, Community Development Fund, Facility Master Plan Implementation Fund and a grouping for all nonmajor 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 four funds, which are considered to be major funds according to the rules stated in Government Accounting Standards Board Statement No. 34 (GASB 34). Data for the remaining governmental funds are combined into the presentation of Other Governmental Funds. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements located in the Supplementary Information section of this report. The County adopts an annual appropriated budget for all of its operating funds. A budgetary comparison statement has been provided for the General Fund, on page 161, to demonstrate performance against this budget. For individual fund budget comparisons for the Nonmajor Special Revenue, Capital Project and Debt Service funds please see the supplementary information schedules. The governmental funds’ financial statements can be found on pages 24 – 33 of this report. Proprietary funds Proprietary Funds include both Internal Service and Enterprise Funds and are presented on a full accrual basis similar to Government-wide financial statements. The County has two Internal Service Funds. These Internal Service Funds are used to account for the general liability and workers’ compensation insurance activities. The County maintains one Enterprise Fund to account for the County hospital (Natividad Medical Center) activities. The proprietary fund’s financial statements can be found on pages 34 – 37 of this report.


6

Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside the County. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the County’s own programs. The external portion of the Treasurer’s Investment Pool and agency funds are reported as fiduciary funds. The fiduciary funds’ financial statements can be found on pages 38 and 39 of this report. Notes to financial statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to financial statements can be found on pages 41 – 88 of this report. Other Information In addition to the financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County’s progress in funding its obligations to provide pension and retiree health care benefits to its employees. Required supplementary information can be found on pages 91 and 92 of this report. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 97 – 163 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets exceeded liabilities by $727.3 at the close of the current fiscal year (Table 1 – Net Assets). The largest portion of the County’s net assets, $548.6 or 75.4% reflects its investment in capital assets, (land, buildings, roads, bridges, machinery and equipment) less any related outstanding debt used to acquire those assets. This area decreased by $0.8 mainly due to the pay down of debt used to fund the construction or purchase of assets. 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, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used. Another portion of the County’s net assets, $106.8, represents resources that are subject to constraints by either external creditors or government entities or by law through constitutional provisions or enabling legislation. The major restrictions on the County’s net assets are imposed by state and federal restrictions for allocations to areas such as: flood control, sanitation, debt service, roads, low income housing, emergency medical services, capital projects, and developments of unincorporated areas. Restricted net assets increased by $1.6, or 1.5%, which represents increases in Capital Projects and Debt Services.


7

2010 2009 2010 2009 2010 2009Current and other assets $368.6 $397.6 $73.1 $53.4 $441.7 $451.0 ($9.3) -2.1%Capital assets 684.6 660.4 113.8 113.6 798.4 774.0 24.4 3.2% Total assets 1,053.2 1,058.0 186.9 167.0 1,240.1 1,225.0 15.1 1.2%

Current and other liabilities 144.5 125.5 20.2 22.0 164.7 147.5 17.2 11.7%Long-term liabilities 275.1 275.4 73.0 64.9 348.1 340.3 7.8 2.3% Total liabilities 419.6 400.9 93.2 86.9 512.8 487.8 25.0 5.1%

Net assets:Invested in capital assets, net of related debt 499.4 502.1 49.2 47.3 548.6 549.4 (0.8) -0.1%Restricted 106.8 105.2 - - 106.8 105.2 1.6 1.5%Unrestricted 27.4 49.8 44.5 32.8 71.9 82.6 (10.7) 13.0% Total net assets $633.6 $657.1 $93.7 $80.1 $727.3 $737.2 ($9.9) -1.3%

TABLE 1 - County of Monterey's Net Assets (in millions)

Governmental Activities Dollar

ChangePercent Change

Total Business-type Activites Total

The County’s unrestricted net assets balance of $71.9 represents resources that are available to meet the County’s ongoing obligations to citizens and creditors. The prior year data has been adjusted to reflect final recognition of expenditures and revenue then omitted due to timing issues. For additional details, please see Note 21 - Restatement of Net Assets and Fund Balances on page 87. The net decline of $9.9 represents the degree to which expenses exceeded revenue by $5.7. The remaining decrease of $4.2 includes a transfer of $2.1 in Courts Facilities to the State and a Supplemental ERAF payment of $2.1.


8

2010 2009 2010 2009 2010 2009RevenuesProgram Revenues: Charges for services $107.4 $118.0 $219.4 $185.6 $326.8 $303.6 $23.2 7.6% Operating grants and contributions 311.0 303.2 - 12.9 311.0 316.1 (5.1) -1.6% Capital grants and contributions 11.9 - - 3.2 11.9 3.2 8.7 N/AGeneral revenues: Property taxes 130.8 149.2 - - 130.8 149.2 (18.4) -12.3% Sales tax & Sales Tax in lieu 5.4 6.5 - - 5.4 6.5 (1.1) -16.9% Transient occupancy and other taxes 12.9 15.0 - - 12.9 15.0 (2.1) -14.0% Franchise taxes 4.7 7.9 - - 4.7 7.9 (3.2) -40.5% Other taxes 3.5 2.0 - - 3.5 2.0 1.5 75.0% Vehicle license fees 11.6 12.2 - - 11.6 12.2 (0.6) -4.9%Unrestricted investment earnings 4.1 2.1 - - 4.1 2.1 2.0 95.2%Tobacco settlement revenues 4.1 4.9 - - 4.1 4.9 (0.8) -16.3%Other - 0.2 - - - 0.2 (0.2) -100.0%Donations - - - 0.7 - 0.7 (0.7) N/A Total revenues 607.4 621.2 219.4 202.4 826.8 823.6 3.2 0.4%

ExpensesGeneral government 89.4 77.8 - - 89.4 77.8 11.6 14.9%Public safety and protection 168.4 177.7 - - 168.4 177.7 (9.3) -5.2%Public ways and facilities 47.4 46.4 - - 47.4 46.4 1.0 2.2%Health and sanitation 124.0 135.2 - - 124.0 135.2 (11.2) -8.3%Public assistance 169.0 158.1 - - 169.0 158.1 10.9 6.9%Education 7.8 7.6 - - 7.8 7.6 0.2 2.6%Recreation and culture services 11.0 11.2 - - 11.0 11.2 (0.2) -1.8%Interest on long-term debt 9.7 10.2 - - 9.7 10.2 (0.5) -4.9%Natividad Medical Center - - 205.8 194.9 205.8 194.9 10.9 5.6% Total expenses 626.7 624.2 205.8 194.9 832.5 819.1 13.4 1.6%

Change in net assets before special and extraordinary items (19.3) (3.0) 13.6 7.5 (5.7) 4.5 (10.2) N/ASpecial and extraordinary items (4.2) - - - (4.2) - (4.2) N/AIncrease (decrease) in net assets (23.5) (3.0) 13.6 7.5 (9.9) 4.5 (14.4) -320.0%

Net assets, beginning 657.1 658.5 80.1 72.6 737.2 731.1 6.1 0.8%Prior Period Adjustment - 1.6 - - - 1.6 (1.6) -100.0%Net assets, ending $633.6 $657.1 $93.7 $80.1 $727.3 $737.2 ($9.9) -1.3%

TABLE 2 - County of Monterey's Changes in Net Assets (in millions)



Total Business-type Activities Total

Governmental Activities Governmental activities decreased the County’s net assets by $23.5. This reduction is primarily due to the use of fund balance to finance government operations as tax revenues were decreasing due to the recession. (See Table 2 Change in Net Assets). Revenues Governmental activities’ revenue (not including special and extraordinary items) decreased $13.8 from $621.2 to $607.4, or a negative 2.2%. This net decrease was mainly due to the decrease in charges for services and property taxes with an offset of increased operating grants and contributions.


9

• Charges for Services decreased by $10.6 due to a drop in special assessments in various county service areas and special districts; reduction in various services within planning and engineering, licenses and permits, agricultural services, election and others due to economic factors and slower demands.

• Operating grants and contributions increased by $7.8 and capital grants and contributions

increased by $11.9. A large portion of the combined increase represents funding of $12.1 through the American Recovery and Reinvestment Act (ARRA). Capital grants and contributions increased, as well, due to $4.0 in contributions of land and buildings. The Health Department received $2.9 in contributions for the Tenant Improvement Project while the remainder was received by the Redevelopment Agency for a park.

• Property taxes decreased by $18.4. This is due mainly to revaluation of properties

reducing the net assessed valuations by nearly $4 billion dollars (see Schedule 5 in the Statistical Section of this report). The recession continues to impact tax revenues from sales, tourism, and franchises with decreases of $1.1, $2.1, and $3.2, respectively.

• Interest and investment earnings increased by $2.0. This increase was due mainly to the

recovery of $1.5 of the loss in the prior year from the Washington Mutual Bank bankruptcy.

Expenses Total governmental expenses increased by $2.5 or 0.4% to $626.7. The County implemented a new financial system and faced difficulties in extracting some data at a detailed level in time for reporting. This caused some functional grouping based at a higher fund level compared to activity level resulting in variance by function. After considering this reclassification effects, the variance numbers by function stated above in Table 2 changed in opposite direction in some cases. General government, public protection, and health and sanitation had impacts with the reclassification.

• General government expenses show an increase by $11.6 or 14.9%. However, a later analysis of reclassification effect revealed expenses in this area decreased due to implementation of a non essential spending restriction and hiring freeze.

• Public safety and protection expenses show a decrease by $9.3 or 5.2%. However,

analysis of the reclassification effect revealed expenses in this area increased due to continued rising costs of pension and workers compensation.

• Health and sanitation expenses show a decrease by $11.2 or 8.3%. However, analysis of

the reclassification effect revealed expenses in this area only slightly dropped due to streamlining and cost readjustment measures to meet the challenge of shrinking revenues.


10

• Public assistance expenses moved up by $10.9 or 6.9%. The increase in this category was a result of increased assistance program activities (CalWORKS, food stamps, Medi-Cal, In-Home Supportive Services, general assistance, food aid, cash assistance, and medical assistance) due to continued declining economy and continuous job losses.

For FY 2009-10 the County has proactively managed the downturn of revenues by implementing a hiring freeze and a strategic control of all expenses. In addition to the 210 staff positions that were eliminated during the FY 2009-10 Adopted Budget process, the Board also approved the additional elimination of 25 positions during mid-year as County management deals proactively with current and anticipated economic challenges. As shown in the following chart, program revenues are less than the expenses in all functional areas. The difference of program expenses over program revenue is $196.4.

Program revenues are not intended to fully support governmental programs. This presentation is meant to show the net cost of each program prior to allocation of general revenues. The net cost of $196.4 of these programs is almost totally funded by general revenues of $177.1 with the deficit funded by prior year unrestricted net assets.

$0.0

$50.0

$100.0

$150.0

$200.0

General government Public safety Public ways and facilities

Health and sanitation

Public assistance Education Recreation and culture services

Interest on long-term debt

Expenses & Program Revenues- Governmental Activities

Expenses Program Revenues


11

Total revenue by sources for governmental activities is shown on the following chart.

Business-type Activities. Natividad Medical Center (NMC) is owned and operated by the County and governed by a separate Board of Trustees. As a County entity, NMC is mandated to treat patients, regardless of ability to pay. NMC experienced a net operating gain of $15.6 in FY 2009-10. This gain, coupled with a net non-operating decrease of $1.8, resulted in the third year of profitability for NMC. The total positive increase in net assets for the fiscal year was $13.8. A strengthened collection and claiming process implemented by the NMC management team was responsible for the healthy increase in net assets. The components of the non-operating revenues consisted of $1.4 net rental income; $.5 from interest earnings and ($3.7) interest expense. FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources at the end of the fiscal year available for spending in the upcoming year.


12

As of the end of the fiscal year, the County’s governmental funds reported total fund balances of $200.7, a decrease of $43.1 from the adjusted prior year total fund balances. Approximately 86.2%, or $173.1, of this amount constitutes unreserved fund balance, which is available to meet the County’s current and future needs. Designations by management of unreserved fund balance represent funds earmarked for planned activities, contingency or use during emergency need (see Note 10). The remainder of fund balance is reserved as these funds are not available for new spending but are designated for the following purposes:

• $9.7 to liquidate contracts and purchase orders of the current period (Encumbrances) • $15.9 to pay debt service • $2.0 of unavailable assets and other reserves

General Fund The General Fund is the main operating fund of the County. All County activities not included in a separate fund are included in the General Fund. At June 30, 2010, unreserved fund balance totaled $74.6, a decrease of $6.1 from the adjusted unreserved fund balance of $80.7 from prior fiscal year. Overall, revenue fell by $15.1 mostly due to decline of Property Taxes as housing market continues to devalue, loss of Transient Occupancy Tax, and Sales & Use Tax. The revenue is expected to continue current trend due to a severe economic downturn. Expenditures decreased by $6.5 from prior year, primarily due to reduction in spending and workforce via the hiring freeze. Road Fund The Road Fund is used to segregate the revenues and expenditures associated with streets and roads within the County. The Road Fund has a total fund balance of $2.4, of which $1.6 is reserved to liquidate contracts and purchase orders, $0.1 is unavailable assets, and $0.7 is unreserved. The recession has reduced the collection of permits by $1.7 and operating grants and contributions by $4.0. While there was an offsetting reduction in expenditures of $3.7, the total expenditures exceeded revenues by $2.1. Due to net transfers of $2.5 from the General Fund and the Capital Projects Fund to the Road Fund for specific projects, the total fund balance increased $0.5, or 28.3%, from the prior fiscal year. Community Development Community Development is used for a variety of economic development activities. Total revenues of $3.1 were slightly less than total expenditures of $3.3, reducing the fund balance by $0.2 to $1.2. Facility Master Plan Implementation The Facility Master Plan Implementation Fund ends the fiscal year with a total fund balance of $30.2, all of which is unreserved. This is a 34.6% decrease from the prior fiscal year’s total fund balance of $46.2. The completed projects that contributed to the decline of the fund balance were: 1) The Health Department Headquarters, 2) Probation – Youth Center Probation Module Education Center, and 3) the Agricultural Commissioner’s building.


13

Other Governmental Funds The sum of the fund balances of the remaining governmental funds decreased $16.4 to a balance of $90.4. The major decreases were in:

• Special Revenue Funds – $8.7 decrease, mainly in Water Resources where there was an influx of bond proceeds in fiscal year 2008-09 but no new debt was issued in fiscal year 2009-10. In addition, in FY 2008-09, Road Fund was included in Other Governmental Funds, but is a major fund in FY 2009-10.

• The Debt Service Funds – $3.7 decrease mostly due to even out effect of funds transferred in this category in fiscal year 2008-09 that got used for debt service in 2009-10.

• Capital Projects – $4.0 decrease mainly due to supplemental ERAF payment of $2.2 and higher capital outlay offset by funds transferred from other categories.

Proprietary funds. The County’s proprietary fund, Natividad Medical Center, increased its net assets by $13.8, reporting net assets of $93.2 at year end. NMC has improved operations due to aggressive receivable collection program implemented by the new management team. NMC achieved a positive net operating income of $15.6, a vast improvement over the prior year operating loss. The unrestricted cash balance for NMC is $45.0, a 57.3% growth when compared to the $28.6 cash balance at June 30, 2009. GENERAL FUND BUDGETARY HIGHLIGHTS

Original Budget to Final Budget Increase

Original Final (Decrease) Estimated revenues $ 543.1 $ 564.0 $ 20.9 Appropriations $ 547.1 $ 564.3 $ 17.2

Estimated revenues increase of $20.9: The final estimated revenue budget increased compared to the original budget by 3.8% due to unanticipated grant funding from ARRA-American Recovery and Reinvestment stimulus funds and various other grants to provide employment programs, housing for families in need, combat gang violence, and strengthen public health emergency response. Appropriations increase of $17.2: Appropriation budgets were increased to reflect the ARRA-American Recovery and Reinvestment stimulus funds and other various grants. These increases were mitigated by savings as departments eliminated or deferred non-essential activities and filled only crucial vacancies. The net result was an increase from the original budget of 3.1%.


14

Final Budget to Actual Variance Positive

Revenues

Final $ 564.0

Actual $ 528.1

(Negative) ($ 35.9)

Expenditures $ 564.3 $ 517.0 $ 47.3 Revenues actual was lower than final budget by $35.9: Taxes, VLF and franchises revenues exceeded the budget slightly. State and Federal Aids were significantly lower than the budget due to initial anticipation of case loads for entitlement programs that did not materialized and the anticipated reimbursement of earned revenue was not received within the 90-day accrual period. The decline in Prop 172 revenue and delayed state payments contribute slightly to the budget shortfall. Permit fees and services associated with housing and construction declined with the downturn of the housing market. Expenditures actual was less than final budget by $47.3: Savings in expenditures are mainly a result of elimination of more full-time equivalent (FTE) positions, reduction in non-essential spending, and excess of budget for entitlement and public assistance programs spending that did not materialized due to lower than expected case loads. CAPITAL ASSETS

2010 2009 2010 2009 2010 2009Land 177.2$ 174.8$ -$ -$ 177.2$ 174.8$ 2.4$ 1.4%Structures and improvements 173.6 141.7 154.0 153.3 327.6 295.0 32.6 11.1%Equipment 91.5 79.3 48.5 42.2 140.0 121.5 18.5 15.2%Infrastructure 524.9 491.4 - - 524.9 491.4 33.5 6.8%Construction in Progress (CIP) 123.7 156.0 1.7 1.3 125.4 157.3 (31.9) -20.3% Total Capital Assets 1,090.9 1,043.2 204.2 196.8 1,295.1 1,240.0 55.1 4.4%Accumulated Depreciation (406.4) (382.8) (90.5) (83.2) (496.9) (466.0) (30.9) 6.6% Total 684.5$ 660.4$ 113.7$ 113.6$ 798.2$ 774.0$ 24.2$ 3.1%

TABLE 3- County of Monterey's Capital Assets



Total Business-type Activites Total

Capital projects are generally completed over multiple fiscal years. Costs accumulate within the construction in progress (CIP) account until the completion of projects. At completion, current year costs and all prior years’ costs of a project are totaled then transferred to structures and improvements, equipment or infrastructure. The County’s governmental activities’ major capital asset events in the current fiscal year included CIP completions of $77.1, CIP addition of $44.8 with a net decrease to CIP of $32.3.


15

The accompanying government-wide financial statements include the costs of those assets that were either completed during the fiscal year or considered CIP at year-end. Additional information on the County’s capital assets can be found in Note 5 on page 62 of this report. DEBT ADMINISTRATION State statutes limit the amount of general obligation debt a government entity may issue to 1.25% of the total assessed valuation of property within the County. The current debt limitation of the County is $614.0. The County’s outstanding long-term issues payable is $281.7 but none is applicable to the debt limit. The following schedule does not include the liabilities for self-insurance, compensated absences, and estimated landfill closure, which are components of the long-term liabilities balance of $373.2 reported in Note 8. At June 30, 2010, the County had total long-term debt outstanding of $281.7. This was a decrease of $11.1 or 3.8% from the prior year balance of $292.8. The net decrease is due to the payment of debt.

2010 2009 2010 2009 2010 2009Certificates of participation 132.8$ 136.3$ 68.0$ 71.3$ 200.8$ 207.6$ (6.8)$ -3.3%Revenue bonds 33.8 33.9 - - 33.8 33.9 (0.1) -0.3%Loans payable-Bureau of Reclamation 29.8 30.8 - - 29.8 30.8 (1.0) -3.2%Judgment Obligation Bonds 3.3 4.0 - - 3.3 4.0 (0.7) -17.5%Notes payable 13.5 14.3 - - 13.5 14.3 (0.8) -5.6%Other bonds and notes 0.4 0.8 0.1 1.4 0.5 2.2 (1.7) -77.3% Total 213.6$ 220.1$ 68.1$ 72.7$ 281.7$ 292.8$ (11.1)$ -3.8%

TABLE 4 - County of Monterey's Long Term Debt (in millions)



Total Business-type Activities Total

Additional information on the County’s long-term debt can be found in Note 8 beginning on page 66 of this report. ECONOMIC ANALYSIS AND NEXT YEAR’S BUDGET AND RATES The following are economic factors for fiscal year 2010-11:

• Property tax revenues will remain low due to prior year major reassessments of property which brought the assessed values down.

• The County of Monterey continues to experience the effects of the economic

downturn in California and the nation. Reduced state intergovernmental funding is projected to continue as more state funding is cut, and programs, such as the American Recovery and Reinvestment Act, wind down.


16

• The Board adopted a fiscal year 2010-11 balanced budget for the General Fund totaling $549.2, a decrease of $20.8 or 3.7% less than the fiscal year 2009-10 adopted budget. The decrease reflects County management’s continued commitment to align expenditures with available funding, streamline service levels while providing essential and mandated services and programs, and minimize the negative effects on County personnel.

REQUESTS FOR INFORMATION This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the County’s finances and to demonstrate the County’s accountability for the money it receives. If you have questions about this report or need additional information, contact the County of Monterey, Office of Auditor-Controller, 168 West Alisal Street, Salinas, CA 93901.

17

BASIC FINANCIAL STATEMENTS – GOVERNMENT-WIDE FINANCIAL STATEMENTS

18


COUNTY OF MONTEREY

Statement of Net AssetsJune 30, 2010

ComponentPrimary Government Unit

Governmental Business-Type Children andActivities Activities Total Families Commission

ASSETSCash and investments:

Held in County treasury 246,511,938$ 44,967,648$ 291,479,586$ 21,983,203$ Held with trustee 17,690,039 492,396 18,182,435 -- Other bank accounts -- 163,307 163,307 438,654 Imprest cash 23,550 2,128 25,678 -- Restricted cash 2,168,496 -- 2,168,496 --

Receivables 78,733,378 21,767,079 100,500,457 956,018 Inventories 500,509 2,236,209 2,736,718 -- Land held for resale and development 856,017 -- 856,017 -- Prepaid items 146,869 1,531,619 1,678,488 4,196 Internal balances (502,166) 502,166 -- -- Long-term receivables 19,593,980 -- 19,593,980 -- Bond issuance costs, net of amortization 2,944,179 1,468,209 4,412,388 -- Capital assets:

Nondepreciable 300,928,623 1,697,360 302,625,983 -- Depreciable, net 383,644,954 112,038,468 495,683,422 20,687

Total assets 1,053,240,366$ 186,866,589$ 1,240,106,955$ 23,402,758$

LIABILITIESVouchers and accounts payable 23,340,611$ 6,365,786$ 29,706,397$ 2,720,084$ Accrued salaries and benefits 9,993,109 3,044,287 13,037,396 12,137 Accrued interest payable 3,239,019 1,458,660 4,697,679 -- Accrued liabilities 4,631,478 6,152,970 10,784,448 -- Deposits from others 6,524,534 3,179,656 9,704,190 -- Unearned revenues 63,491,742 -- 63,491,742 -- Long-term liabilities:

Due within one year 33,304,382 8,511,030 41,815,412 31,732 Due beyond one year 268,232,955 63,126,747 331,359,702 64,275 Liability for post-employment benefits 6,862,415 1,373,664 8,236,079 --

Total liabilities 419,620,245 93,212,800 512,833,045 2,828,228

NET ASSETSInvested in capital assets, net of related debt 499,357,153 49,185,313 548,542,466 13,561 Restricted for:

Community resources and facilities 30,245,670 -- 30,245,670 -- Health and public assistance 2,284,924 -- 2,284,924 -- Disaster assistance 258,355 -- 258,355 -- Capital projects 61,789,611 -- 61,789,611 -- Debt service 4,682,785 -- 4,682,785 -- Housing and redevelopment 7,528,424 7,528,424 -- Other -- -- -- 20,560,969

Unrestricted 27,473,199 44,468,476 71,941,675 -- Total net assets 633,620,121 93,653,789 727,273,910 20,574,530

Total liabilities and net assets 1,053,240,366$ 186,866,589$ 1,240,106,955$ 23,402,758$

The accompanying notes are an integral part of these financial statements.19

COUNTY OF MONTEREY

Statement of ActivitiesFor the Year Ended June 30, 2010

Program RevenuesFees, Fines, and Operating Capital

Charges for Grants and Grants andExpenses Services Contributions Contributions

Functions/ProgramsPrimary government

Governmental activities:General government 89,451,318$ 25,187,142$ 10,664,742$ --$ Public safety and protection 168,426,837 18,752,548 53,055,408 -- Public ways and facilities 47,463,448 19,700,184 12,102,035 9,015,518Health and sanitation 123,965,661 35,502,103 77,662,375 2,943,000Public assistance 168,967,862 1,591,224 156,220,094 -- Education 7,808,427 381,064 328,594 -- Recreation and cultural services 10,962,720 6,353,474 931,289 -- Interest on long-term debt 9,749,683 -- -- --

Total governmental activities 626,795,956 107,467,739 310,964,537 11,958,518

Business-type activities:Natividad Medical Center 205,759,528 219,326,424 -- --

Total business-type activities 205,759,528 219,326,424 -- --

Total primary government 832,555,484$ 326,794,163$ 310,964,537$ 11,958,518$

Component unitChildren and Families Commission 7,525,458$ --$ 6,119,354$ --$

General revenues:Taxes:

Property taxesSales and use taxesTransient occupancy taxesFranchise taxesOther taxes

Intergovernmental not restricted to specific programsUnrestricted interest and investment earningsTobacco settlement revenuesOther revenues

Total general revenues

Special Item - Transfer of Courts FacilityExtraordinary Item: Supplemental ERAF payment

Change in net assetsNet assets - July 1, 2009 as restated

Net assets - June 30, 2010

20

Net (Expenses) Revenues andChanges in Net Assets

ComponentPrimary Government Unit

Business- Children andGovernmental Type Families

Activities Activities Total Commission

(53,599,434)$ --$ (53,599,434)$ --$ (96,618,881) -- (96,618,881) --

(6,645,711) -- (6,645,711) -- (7,858,183) -- (7,858,183) --

(11,156,544) -- (11,156,544) -- (7,098,769) -- (7,098,769) -- (3,677,957) -- (3,677,957) -- (9,749,683) -- (9,749,683) --

(196,405,162) -- (196,405,162) --

-- 13,566,896 13,566,896 -- -- 13,566,896 13,566,896 --

(196,405,162) 13,566,896 (182,838,266) --

(1,406,104)

130,817,335 -- 130,817,335 -- 5,378,707 -- 5,378,707 --

12,952,337 -- 12,952,337 -- 4,691,532 -- 4,691,532 -- 3,525,705 -- 3,525,705 --

11,609,856 -- 11,609,856 -- 4,090,748 -- 4,090,748 383,730 4,069,510 -- 4,069,510 --

-- -- -- 275,000 177,135,730 -- 177,135,730 658,730

(2,050,109) -- (2,050,109) -- (2,170,500) -- (2,170,500) --

(23,490,041) 13,566,896 (9,923,145) (747,374) 657,110,162 80,086,893 737,197,055 21,321,904

633,620,121$ 93,653,789$ 727,273,910$ 20,574,530$


22


23

BASIC FINANCIAL STATEMENTS – FUND FINANCIAL STATEMENTS

COUNTY OF MONTEREY

Balance SheetGovernmental Funds

June 30, 2010

General Road CommunityFund Fund Development

ASSETSCash and investments:

Held in County Treasury 78,149,009$ 16,831,979$ 591,323$ Held with trustee -- -- 430,358 Imprest cash 23,550 -- -- Restricted cash 2,168,496 -- --

Receivables 70,504,982 1,511,897 276,804 Due from other funds 23 -- -- Advances to other funds -- -- 150,000 Inventories 388,354 112,155 -- Land held for resale -- -- -- Prepaid items and other assets -- -- 24,296 Long-term receivables -- -- 14,053,119

Total assets 151,234,414$ 18,456,031$ 15,525,900$

LIABILITIESVouchers and accounts payable 15,108,097$ 1,715,491$ 261,293$ Due to other funds -- -- -- Accrued salaries and benefits 9,182,476 269,467 -- Accrued liabilities 4,628,594 85 -- Claims liability 656,168 -- -- Deposits from others 3,340,305 2,895,008 22,112 Deferred revenues 41,815,398 11,157,576 14,057,492 Advances from other funds -- -- --

Total liabilities 74,731,038 16,037,627 14,340,897

FUND BALANCESReserved for:

Encumbrances 1,479,206 1,609,917 -- Unavailable assets 411,904 112,155 24,296 Debt service -- -- --

Unreserved:General

Designated 60,681,823 -- -- Undesignated 13,930,443 -- --

Special revenue funds:Designated -- -- -- Undesignated -- 696,332 1,160,707

Capital projects funds:Undesignated -- -- --

Debt service funds:Undesignated -- -- --

Total fund balances 76,503,376 2,418,404 1,185,003

Total liabilities and fund balances 151,234,414$ 18,456,031$ 15,525,900$

24

Facility OtherMaster Plan Governmental

Implementation Funds TotalASSETSCash and investments:

28,313,205$ 77,691,448$ 201,576,964$ Held in County Treasury4,897,402 11,861,794 17,189,554 Held with trustee

-- -- 23,550 Imprest cash-- -- 2,168,496 Restricted cash

345,874 6,093,821 78,733,378 Receivables-- 447,842 447,865 Due from other funds-- 60,295 210,295 Advances to other funds-- -- 500,509 Inventories-- 856,017 856,017 Land held for resale-- -- 24,296 Prepaid items and other assets-- 5,540,861 19,593,980 Long-term receivables

33,556,481$ 102,552,078$ 321,324,904$ Total assets

LIABILITIES3,391,799$ 2,474,619$ 22,951,299$ Vouchers and accounts payable

-- 447,865 447,865 Due to other funds-- 541,166 9,993,109 Accrued salaries and benefits-- 2,799 4,631,478 Accrued liabilities-- -- 656,168 Claims liability-- 267,109 6,524,534 Deposits from others-- 8,179,252 75,209,718 Deferred revenues-- 210,295 210,295 Advances from other funds

3,391,799 12,123,105 120,624,466 Total liabilities

FUND BALANCESReserved for:

-- 6,585,315 9,674,438 Encumbrances-- 1,487,026 2,035,381 Unavailable assets-- 15,893,401 15,893,401 Debt service

Unreserved:General

-- -- 60,681,823 Designated-- -- 13,930,443 Undesignated

Special revenue funds:-- 10,679,240 10,679,240 Designated-- 23,072,936 24,929,975 Undesignated

Capital projects funds:30,164,682 32,059,877 62,224,559 Undesignated

Debt service funds:-- 651,178 651,178 Undesignated

30,164,682 90,428,973 200,700,438 Total fund balances

Total liabilities and33,556,481$ 102,552,078$ 321,324,904$ fund balances


COUNTY OF MONTEREY

Reconciliation of the Governmental Funds Balance Sheet tothe Government-Wide Statement of Net Assets - Governmental Activities

June 30, 2010

Fund balance - Total governmental funds 200,700,438$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resourcesand, therefore, are not reported in the governmental funds. 679,522,219

Other long-term assets are not available to pay for current periodexpenditures and, therefore are deferred in the governmental funds. 11,717,976

Internal service funds are used by the County to charge the cost of generalliability and workers' compensation insurance to individual funds. Theassets and liabilities of the internal service funds are included ingovernmental activities in the statement of net assets. (18,521,077)

Issuance costs on certificates of participation and revenue bonds are capitalized and amortized over the life of the related debt issue. 2,944,179

Long-term liabilities, including bonds payable, are not due and payablein the current period and therefore are not reported in the governmentalfunds. Interest on long-term debt is not accrued in governmental funds,but rather is recognized as an expenditure when due. All liabilities arereported in the statement of net assets. Balances as of June 30, 2009 are:

Bonds and notes payable (63,819,379)$ Certificates of participation (132,800,000) Unamortized premium on certificates of participation (2,824,090) Unamortized gain on refunding of certificates of participation 2,496,846 Capital lease obligations (213,032) Accrued interest on long-term debt (3,184,436) Compensated absences (32,327,926) Estimated landfill closure and postclosure costs (2,707,016) OPEB liability (6,862,415) (242,241,448)

Adjustment necessary to close Internal Service Funds activities. This is thecummulative excess of revenues over expenses allocable to business-typeactivities (502,166)

Net assets of governmental activities 633,620,121$


27


COUNTY OF MONTEREY

Statement of Revenues, Expenditures, and Changes in Fund BalancesGovernmental Funds


General Road CommunityFund Fund Development

Revenues:Taxes 148,222,739$ --$ --$ Licenses and permits 10,616,599 450,299 -- Fines, forfeitures and penalties 8,080,377 -- -- Revenue from use of money and property 1,967,288 71,240 31,164 Aid from other governmental agencies 283,019,307 19,719,791 2,282,925 Charges for services 68,549,773 3,572,478 2,094 Tobacco settlement and other revenue 7,619,976 78,097 739,813

Total revenues 528,076,059 23,891,905 3,055,996

Expenditures:Current:

General government 74,385,512 -- 3,280,682 Public safety and protection 166,183,507 -- -- Public ways and facilities -- 25,945,968 -- Health and sanitation 119,856,188 -- -- Public assistance 153,253,146 -- -- Education 545,067 -- -- Recreation and cultural services 8,720,985 -- --

Debt service:Principal -- -- -- Interest and debt service costs 233,951 -- --

Capital outlay -- -- -- Total expenditures 523,178,356 25,945,968 3,280,682

Excess (deficiency) of revenues over (under) expenditures 4,897,703 (2,054,063) (224,686)

Other financing sources (uses):Inception of capital leases 23,285 -- -- Transfers in 925,000 2,887,421 -- Transfers out (18,970,031) (300,000) -- Sale of capital assets 244,888 -- --

Total other financing sources (uses) (17,776,858) 2,587,421 --

Extraordinary Item:Supplemental ERAF payment -- -- --

Net change in fund balances (12,879,155) 533,358 (224,686)

Fund balances, beginning of year, restated 89,382,531 1,885,046 1,409,689

Fund balances, end of year 76,503,376$ 2,418,404$ 1,185,003$

28

Facility OtherMaster Plan Governmental

Implementation Funds TotalRevenues:

--$ 13,997,757$ 162,220,496$ Taxes-- 77,385 11,144,283 Licenses and permits-- 2,317,231 10,397,608 Fines, forfeitures and penalties

783,809 1,985,257 4,838,758 Revenue from use of money and property-- 15,640,839 320,662,862 Aid from other governmental agencies

18 20,292,982 92,417,345 Charges for services-- 617,356 9,055,242 Tobacco settlement and other revenue

783,827 54,928,807 610,736,594 Total revenues


-- 4,579,305 82,245,499 General government-- -- 166,183,507 Public safety and protection-- 17,991,446 43,937,414 Public ways and facilities-- 3,634,773 123,490,961 Health and sanitation-- 14,728,470 167,981,616 Public assistance-- 7,175,649 7,720,716 Education-- 2,852,539 11,573,524 Recreation and cultural services

Debt service:-- 4,919,722 4,919,722 Principal-- 8,719,567 8,953,518 Interest and debt service costs

16,784,769 18,164,611 34,949,380 Capital outlay16,784,769 82,766,082 651,955,857 Total expenditures

Excess (deficiency) of revenues(16,000,942) (27,837,275) (41,219,263) over (under) expenditures

Other financing sources (uses):-- 61,476 84,761 Inception of capital leases-- 53,218,031 57,030,452 Transfers in-- (37,760,421) (57,030,452) Transfers out-- -- 244,888 Sale of capital assets-- 15,519,086 329,649 Total other financing sources (uses)

Extraordinary Item:-- (2,170,500) (2,170,500) Supplemental ERAF payment

(16,000,942) (14,488,689) (43,060,114) Net change in fund balances

46,165,624 104,917,662 243,760,552 Fund balances, beginning of year, restated

30,164,682$ 90,428,973$ 200,700,438$ Fund balances, end of year


COUNTY OF MONTEREY

Reconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balances of Governmental Funds to the

Government-Wide Statement of Activities - Governmental ActivitiesFor the Year Ended June 30, 2010

Net change in fund balance - Total governmental funds (43,060,114)$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlay as expenditures. However, in the statementof activities, the cost of those assets is allocated over their estimated useful livesand reported as depreciation expense.

Expenditures for general capital assets, infrastructure, and other related capital asset additions 53,125,521$ Transfer of Court facilities (2,050,109) Less current year depreciation (25,060,641) 26,014,771

The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins and donations) is to decrease net assets (1,128,657)

Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. (7,651,924)

Some expenses reported in the statement of activities do not require the use ofcurrent financial resources and, therefore, are not reported as expenditures ingovernmental funds. In addition, interest on long-term debt is not recognizedunder the modified accrual basis of accounting until due, rather than as it accrues.

Change in accrued interest on long-term debt 200,264Change in compensated absences (1,481,089)Change in estimated landfill closure and postclosure 208,227Ch i OPEB li bili (1 462 490)


Change in OPEB liability (1,462,490)Amortization of issuance costs (104,149)Amortization of refunding loss (46,327)Amortization of premiums and discounts 51,513 (2,634,051)

Long-term debt proceeds provide current financial resources for governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Costsassociated with the issuance of debt are reported as expenditures in the governmentalfunds, but deferred and amortized through out the period during which the associateddebt is outstanding. Prepayment of debt principal is an expenditure in the governmentalfunds, but the repayment reduces long-term liabilities in the statement of net assets.

Debt issued or incurred:Issuance of capital leases (84,761)

Principal repayments:Certificates of participation 3,460,000Revenue and special assessment bonds 59,000 Notes and loans 1,425,349 Capital leases 124,861 4,984,449

Internal service funds are used by management to charge the costs of certainactivities to individual funds. The net revenue of certain activities of theinternal service funds is reported with governmental activities. (239,916)

Adjustment necessary to close internal service funds activities. This is the current yearexcess of revenues over expenses allocable to business-type activities 225,401

Change in net assets of governmental activities (23,490,041)$


COUNTY OF MONTEREY

Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualGeneral Fund

For the Year Ended June 30, 2010Variance withFinal Budget

Budgeted Amounts Actual Amounts PositiveOriginal Final (Budgetary Basis) (Negative)

Revenues:Taxes, VLF and franchises 144,859,392$ 144,859,392$ 148,222,739$ 3,363,347$ Licenses and permits 11,495,999 11,495,999 10,616,599 (879,400) Fines, forfeitures and penalties 10,096,923 10,096,923 8,080,377 (2,016,546) Revenue from use of money and property 2,839,844 2,839,844 1,967,288 (872,556) Aid from other governmental agencies 286,620,560 305,209,877 283,019,307 (22,190,570) Charges for services 76,823,366 78,823,211 68,549,773 (10,273,438) Tobacco settlement and miscellaneous 10,360,088 10,660,170 7,619,976 (3,040,194)

Total revenues 543,096,172 563,985,416 528,076,059 (35,909,357)


General government 87,934,734 88,955,567 73,066,653 15,888,914 Public safety and protection 167,359,806 170,875,007 164,509,327 6,365,680 Health and sanitation 122,419,157 124,895,846 117,164,030 7,731,816 Public assistance 157,368,131 168,398,902 152,935,848 15,463,054 Education 631,462 631,462 544,921 86,541 Recreation and cultural services 9,751,141 9,751,141 8,546,183 1,204,958 Debt service 432,155 432,155 233,951 198,204 Contingency 1,174,230 311,063 -- 311,063

Total expenditures 547,070,816 564,251,143 517,000,913 47,250,230

Excess (deficiency) of revenues over(under) expenditures (3,974,644) (265,727) 11,075,146 11,340,873

Other financing sources (uses):Inception of capital leases -- -- 23,285 23,285Transfers in 924,500 2,461,530 925,000 (1,536,530)Transfers out (17,773,425) (18,398,425) (18,970,031) (571,606)Sale of capital assets -- -- 244,888 244,888

Total other financing sources (uses) (16,848,925) (15,936,895) (17,776,858) (1,839,963)

Net change in budgetary fund balances (20,823,569) (16,202,622) (6,701,712) 9,500,910

Budgetary fund balances, beginning 89,382,531 89,382,531 89,382,531 -- Budgetary fund balances, ending 68,558,962$ 73,179,909$ 82,680,819$ 9,500,910$

Explanation of differences between budgetary inflows and outflows and GAAP revenues and expenditures:

Uses/outflows of resourcesActual amounts (budgetary basis) of expenditures from the budgetary comparison statement 517,000,913$ Differences - budget to GAAP:

Encumbrances for supplies and services ordered but not received is reported in theYear the order is placed for budgetary purposes, but in the year the supplies areReceived for financial reporting purposes 6,177,443

Total expenditures as reported on the statement of revenues, Expenditures, and changes in fund balances - governmental funds 523,178,356$


COUNTY OF MONTEREY

Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualRoad Fund


Variance withFinal Budget


Revenues:Licenses, permits and franchises 2,116,967$ 2,116,967$ 450,299$ (1,666,668)$ Revenue from use of money and property 15,679 15,679 71,240 55,561Aid from other governmental agencies 27,021,787 27,021,787 19,719,791 (7,301,996)Charges for services 3,050,888 3,050,888 3,572,478 521,590Other revenue 32,144 32,144 78,097 45,953

Total revenues 32,237,465 32,237,465 23,891,905 (8,345,560)


Public ways and facilities 35,390,465 35,090,465 26,867,038 8,223,427Total expenditures 35,390,465 35,090,465 26,867,038 8,223,427

Excess (deficiency) of revenues over (under) expenditures (3,153,000) (2,853,000) (2,975,133) (122,133)

Other financing sources (uses):Transfers in 2,028,000 2,828,000 2,887,421 59,421Transfers out -- (300,000) (300,000) --

Total other financing sources (uses) 2,028,000 2,528,000 2,587,421 59,421

Net change in budgetary fund balances (1,125,000) (325,000) (387,712) (62,712)

Budgetary fund balances, beginning 1,885,046 1,885,046 1,885,046 --

Budgetary fund balances, ending 760,046$ 1,560,046$ 1,497,334$ (62,712)$

Explanation of differences between budgetary inflows and outflows and GAAP expenditures:

Uses/outflows of resources

Actual amounts (budgetary basis) of expenditures from the budgetary comparison statement 26,867,038$

Differences - budget to GAAP:Encumbrances for supplies and services ordered but not received is reported in the

Year the order is placed for budgetary purposes, but in the year the supplies areReceived for financial reporting purposes (921,070)

Total expenditures as reported on the combining statement of revenues, Expenditures, and changes in fund balances - governmental funds 25,945,968$


COUNTY OF MONTEREY

Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and ActualCommunity Development




Revenues:Revenue from use of money and property 124,399$ 124,399$ 31,164$ (93,235)$ Aid from other governmental agencies 1,429,427 3,570,141 2,282,925 (1,287,216)Charges for services 9,000 9,000 2,094 (6,906)Other revenue 317,091 2,067,091 739,813 (1,327,278)

Total revenues 1,879,917 5,770,631 3,055,996 (2,714,635)


General government 3,046,679 7,149,894 3,136,264 4,013,630Total expenditures 3,046,679 7,149,894 3,136,264 4,013,630

Other financing sources (uses):Transfers in 75,000 75,000 -- (75,000)Transfers out (75,000) (75,000) -- 75,000

Total other financing sources (uses) -- -- -- --

Net change in budgetary fund balances (1,166,762) (1,379,263) (80,268) 1,298,995


Budgetary fund balances, ending 242,927$ 30,426$ 1,329,421$ 1,298,995$

Explanation of differences between budgetary inflows and outflows and GAAP expenditures:

Uses/outflows of resources

Actual amounts (budgetary basis) of expenditures from the budgetary comparison statement 3,136,264$

Differences - budget to GAAP:Encumbrances for supplies and services ordered but not received is reported in the

year the order is placed for budgetary purposes, but in the year the supplies arereceived for financial reporting purposes. 144,418

Total expenditures as reported on the combining statement of revenues, expenditures, and changes in fund balances - governmental funds 3,280,682$


COUNTY OF MONTEREY

Statement of Net AssetsProprietary Funds

June 30, 2010

Business-TypeActivities - Governmental

Enterprise Fund ActivitiesNatividad InternalMedical ServiceCenter Funds

AssetsCurrent assets:

Cash and cash equivalents 44,967,648$ 44,934,974$ Imprest cash 2,128 --Other bank accounts 163,307 --Patient’s accounts receivable, net of estimated uncollectable of $113,995,129 18,700,372 --Due from other agencies 3,066,707 --Inventories 2,236,209 --Prepaid expenses 1,531,619 122,573

Total current assets 70,667,990 45,057,547

Noncurrent assets:Restricted assets:

Held by trustee 492,396 500,485Capital assets:

Non-depreciable 1,697,360 --Depreciable, net 112,038,468 5,051,358

Deferred charges, net of amortization 1,468,209 --Total noncurrent assets 115,696,433 5,551,843Total assets 186,364,423 50,609,390

LiabilitiesCurrent liabilities:

Accounts payable and deposits 9,545,442 389,312Accrued salaries and benefits 3,044,287 --Accrued interest payable 1,458,660 54,583Accrued liabilities 6,152,970 --Current portion of long-term debt and other liabilities 8,511,030 13,403,340

Total current liabilities 28,712,389 13,847,235

Long-term liabilities:Claims liability -- 40,028,755Bonds and notes payable -- 15,254,477Certificates of participation 62,467,260 --Liability for post-employment benefits 1,373,664 --Compensated absences 659,487 --

Total long-term liabilities 64,500,411 55,283,232Total liabilities 93,212,800 69,130,467

Net assetsInvested in capital assets, net of related debt 49,185,313 303,187Unrestricted (deficit) 43,966,310 (18,824,264)

Total net assets 93,151,623 (18,521,077)$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise fund 502,166

Net assets of business-type activities 93,653,789$


COUNTY OF MONTEREY

Statement of Revenues, Expenses and Changes in Net AssetsProprietary Funds




Operating revenues:Net patient services revenues 202,833,885$ --$ Other charges for services -- 20,376,546Other operating revenues 14,597,331 --

Total operating revenues 217,431,216 20,376,546

Operating expenses:Salaries and wages 68,575,364 --Employee benefits 25,560,063 --Services and supplies 14,326,222 3,017,081Provisions for doubtful accounts receivable 47,590,815 --Claims expense -- 14,244,432Utilities 2,724,649 --Purchased services 30,247,765 936,139Insurance 2,522,074 1,246,557Depreciation 7,177,782 732,955Other 3,111,513 --

Total operating expenses 201,836,247 20,177,164

Net operating income (loss) 15,594,969 199,382

Non-operating revenues (expenses):Interest income 456,068 458,168Interest expense (3,697,880) (897,466)Rental income 1,439,140 --

Total non-operating revenues (expenses) (1,802,672) (439,298)

Change in net assets 13,792,297 (239,916)

Net assets, beginning of year, restated 79,359,326 (18,281,161)

Net assets, end of year 93,151,623$ (18,521,077)$

Change in net assets, from above 13,792,297$ Adjustment to reflect the consolidation of internal service funds activities related to enterprise fund (225,401)

Change in net assets of business-type activities 13,566,896$


COUNTY OF MONTEREY

Statement of Cash FlowsProprietary Funds




Cash flows from operating activities:Cash received from patients and third party payors 168,713,301$ --$ Cash receipts from customers and users -- 20,409,027Cash paid to employees for services (92,576,788) -- Cash paid to suppliers for goods and services (48,216,249) (13,892,704)

Net cash provided (used) by operating activities 27,920,264 6,516,323

Cash flows from capital and related financing activities:Principal paid on capital related debt (3,699,135) (1,524,678)Interest paid on capital related debt (2,292,089) (842,883)Payments related to the acquisition of capital assets (7,469,532) --

Net cash provided (used) by capital and related financing activities (13,460,756) (2,367,561)

Cash flow from investing activities:Cash received from rental income 2,079,872 -- Cash paid on rental property operations (464,451) -- Interest payments received 456,067 458,168

Net cash provided (used) by investing activities 2,071,488 458,168

Net increase (decrease) in cash and cash equivalents 16,530,996 4,606,930 Cash and cash equivalents, July 1 29,094,483 40,828,529 Cash and cash equivalents, June 30 45,625,479$ 45,435,459$

Reconciliation of cash and cash equivalents to statement of net assetsCash and cash equivalents 44,967,648$ 44,934,974$ Imprest cash 2,128 -- Other bank accounts 163,307 -- Restricted cash 492,396 500,485 Total cash and cash equivalents 45,625,479$ 45,435,459$

continued


COUNTY OF MONTEREY

Statements of Cash Flows (continued)Proprietary Funds




Reconciliation of operating income to net cashProvided by operating activities:Operating income (loss) $ 15,594,969 $ 199,382 Adjustments to reconcile operating income to net

Cash provided (used) by operating activities:Depreciation and amortization 7,177,782 732,955 (increase) decrease in provision for doubtful accounts 16,499,798 -- (increase) decrease in receivables (19,197,130) 32,481 (increase) decrease in inventories (513,110) -- (increase) decrease in prepaid items 234,916 -- Increase (decrease) in accounts payable 3,519,537 111,433 Increase (decrease) in other accrued liabilities 1,956,922 -- Increase (decrease) in patient refunds 1,846,265 -- Increase (decrease) in unearned revenue (40,361) -- Increase (decrease) in compensated absences 721,301 -- Increase (decrease) in post-employment liability 355,047 -- Increase (decrease) in estimated third-party payor settlements (235,672) -- Increase (decrease) in claims liability -- 5,440,072

Total adjustments 12,325,295 6,316,941

Net cash provided (used) by operating activities 27,920,264$ 6,516,323$

Noncash investing, capital, and financing activities:Refunding bonds issued to paydown existing indebtedness 44,520,000$ --$ Premium included in proceeds 2,356,020 -- Issuance costs withheld from bond proceeds (577,518) -- Interest costs withheld from bond proceeds (958,502) -- Repayment of capital related debt (43,700,000) -- Depreciation on leased assets (176,281) --


COUNTY OF MONTEREY

Statement of Fiduciary Net AssetsJune 30, 2010

Investment AgencyTrust Funds

AssetsCash and investments held in county treasury 622,150,426$ 27,137,440$ Taxes receivable -- 33,341,969 Long-term receivables -- 30,000

Total assets 622,150,426 60,509,409

LiabilitiesAccounts payable -- 838,647 Agency funds held for others -- 59,670,762

Total liabilities -- 60,509,409

Net assetsNet assets held in trust for investment pool

participants 622,150,426 --

Total net assets 622,150,426$ --$


COUNTY OF MONTEREY

Statement of Changes in Fiduciary Net AssetsFor the Year Ended June 30, 2010

InvestmentTrust

AdditionsContributions to investment pool 974,479,293$ Interest and investment income 9,442,035

Total additions 983,921,328

DeductionsDistributions from investment pool 978,408,940

Total deductions 978,408,940

Change in net assets 5,512,388

Net assets, beginning of year 616,638,038

Net assets, end of year 622,150,426$


40


41

NOTES TO FINANCIAL STATEMENTS

The notes provided in the financial section are considered an integral and essential part of adequate disclosure and fair presentation of this report. The notes include a summary of significant accounting policies for the County, and other necessary disclosure of pertinent matters relating to the financial position of the County. The notes express significant insight to the financial statements and are conjunctive to understanding the rationale for presentation of the financial statements and information contained in this document.

42


COUNTY OF MONTEREY

Notes to Financial Statements For the Year Ended June 30, 2010

43

Note 1: Summary of Significant Accounting Policies

A. The Financial Reporting Entity

The County of Monterey (County) was created pursuant to general law as a subdivision of the State of California. It is governed by a five-member elected Board of Supervisors. As required by generally accepted accounting principles, the accompanying financial statements present the County (the primary government) and its component units, entities for which the government is considered to be financially accountable under the criteria set by Government Auditing Standards Board (GASB) Statement No. 14.

Although they are legally separate from the County, the following blended component units are reported as if they were a part of the County because the Monterey County Board of Supervisors also serves as the governing board of each component unit:

– Monterey County Water Resources Agency, including Storm Drain Maintenance District No. 2 and Gonzales Slough Maintenance District

– All County Service Areas – All County Sanitation Districts except Seaside County Sanitation District – Monterey County Redevelopment Agency – Nacimiento Hydroelectric Operations – Monterey County Financing Authority – Monterey County Public Improvements Corporation

Complete financial statements of the Monterey County Redevelopment Agency, Monterey County Financing Authority and Monterey County Public Improvements Corporation can be obtained by contacting the County of Monterey, Intergovernmental Affairs, P.O. Box 180, Salinas, CA 93902.

Monterey County Children and Families Commission (Commission) was established under the provisions of the California Children and Families Act. The Commission is a legally separate entity governed by a board of seven members. Three members are representatives of the County’s health care departments, County’s social services departments and the Board of Supervisors. The County Board of Supervisors may remove any Commission member at any time. Since the County Board of Supervisors can impose their will on the Commission, the Commission is considered a discretely presented component unit of the County. Separately issued statements may be obtained by contacting the Commission at 1125 Baldwin Street, Salinas, CA 93906.

COUNTY OF MONTEREY


44

Note 1: Summary of Significant Accounting Policies (continued)

A. The Financial Reporting Entity (continued)

The Monterey County Board of Supervisors appoints a voting majority of the governing boards of the following entities; however, such entities are excluded from the accompanying financial statements due to the fact that (1) the County is not able to impose its will on the entity and (2) there is not a financial benefit/burden relationship between the County and the entity:

– Monterey County Housing Authority – Monterey Bay Unified Air Pollution Control District – All Cemetery Districts – Carmel Highlands Fire Protection District – Mid-Carmel Valley Fire Protection District – Mission Soledad Rural Fire Protection District – Salinas Rural Fire Protection District – North County Public Recreation District

B. New Accounting Pronouncements

The GASB has issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement enhances the usefulness of fund balance information by establishing fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.

The definitions of the general fund, special revenue fund types, capital project fund types, debt service fund types and permanent fund types are clarified by the provisions in this statement. Interpretations of certain items within the definition of the special revenue fund type have been provided and, for some governments, those interpretations may affect the activities chosen to be reported as special revenue funds.

The requirements of this statement are effective for financial statements for periods beginning after June 5, 2010. Fund balance reclassifications made to conform to the provisions of the statement are required to be applied retroactively by restating beginning fund balance.

COUNTY OF MONTEREY


45


C. Basis of Presentation

Government-Wide Financial Statements

The statement of net assets and statement of activities display information about the primary government (County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. All internal balances in the statement of net assets have been eliminated with the exception of those representing balances between governmental activities and the business-type activities, which are presented as internal balances. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

The statement of activities presents a comparison between program expenses and program revenues for each segment of the business-type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments for services where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the County’s funds. Elimination of these charges would distort the direct costs and program revenues reported for the various functions.

When both restricted and unrestricted net assets are available, restricted resources are used first, then unrestricted resources as they are needed.

COUNTY OF MONTEREY


46


C. Basis of Presentation (continued)

Fund Financial Statements

The fund financial statements provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operation. The principal operating revenues of the County’s enterprise fund and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The County reports the following major governmental funds:

• The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. For the County, the General Fund includes such activities as general government, public safety and protection, public ways and facilities, health and sanitation, public assistance, education and recreation and cultural services.

• The Road Fund carries out basic governmental activities of the County that relate to public ways not accounted for through other funds.

• The Community Development Fund is used for a variety of economic development activities and for planning and technical assistance studies. This fund is also used to account for monies received from the State and Federal Governments and loaned by the County to individuals and businesses to encourage economic growth.

• The Facility Master Plan Implementation Fund is designated for the renovation of the North, East and West Wings of the Courthouse, the Government Center Parking Structure and the New Health Headquarters. Additionally, funds will be used to address space needs for various other County departments.

COUNTY OF MONTEREY


47


C. Basis of Presentation (continued)

Fund Financial Statements (continued)

The County reports the following major enterprise fund:

• The Natividad Medical Center (NMC) accounts for hospital operations involved in providing health services to County residents. Revenues are principally fees for patient services, payments from federal and state programs such as Medicare, Medi-Cal and Short Doyle, realignment revenues and subsidies from the General Fund. For more detailed information on the Center, refer to the Natividad Medical Center audit report.

The County reports the following additional fund types:

• Internal Service Funds account for the County’s self-insurance programs including workers’ compensation and general liability insurance.

• The Investment Trust Fund accounts for the assets of legally separate entities that deposit cash with the County Treasurer. These entities include school and community college districts and other special districts governed by local boards, regional boards and authorities. These funds represent the assets, primarily cash and investments, and the related liability of the County to disburse these monies on demand.

• The Agency Funds account for assets held by the County as an agent for various local governments.

D. Basis of Accounting

The government-wide, proprietary and agency fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds have no measurement focus and report only assets and liabilities. However, agency funds use the accrual basis of accounting when recognizing receivables and payables.

Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes

COUNTY OF MONTEREY


48


D. Basis of Accounting (continued)

are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available (“susceptible to accrual”). The County considers property tax revenues to be available if they are collected within 60 days of the end of the current fiscal period. All other revenues are considered to be available if they are collected within 90 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.

For its business-type activities and enterprise fund, the County has elected under GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements as well as any applicable pronouncements of the Financial Accounting Standards Board, the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 30, 1989 unless those pronouncements conflict with or contradict GASB pronouncements. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units.

E. Cash and Investments

The County follows the practice of pooling cash and investments of all funds with the County Treasurer, except for certain restricted funds which are generally held by outside custodians and classified as “Cash and investments with fiscal agents” on the accompanying financial statements. Interest earned on pooled investments is allocated to the funds entitled to receive interest based on the average daily cash balance of each fund for the quarter in which the interest was earned.

COUNTY OF MONTEREY


49


E. Cash and Investments (continued)

For purposes of the Statement of Cash Flows, the proprietary fund types consider all highly liquid investments with a maturity date of three months or less at the time of purchase to be cash equivalents. Proprietary fund types deposits with the County Treasurer are demand-type deposits and are therefore considered to be cash equivalents.

Investment in the Treasurer’s Pool

Statutes authorize the County to invest its surplus cash in obligations of the U.S. Treasury, agencies and instrumentalities, corporate bonds rated P-1 by Standard & Poor’s Corporation or A-1 by Moody’s Investor Service, bankers’ acceptances, certificates of deposit, commercial paper, repurchase agreements, and the State of California Local Agency Investment Fund. Gains and losses are recognized upon sale based upon the specific identification method. Investments in nonparticipating interest-earning investment contracts (guaranteed investment contracts) are reported at cost, commercial paper which have maturities of less than 90 days and investments in external pools are reported at amortized cost and all other investments are reported at fair value. The fair values of investments are obtained by using quotations obtained from independent published sources.

The fair value of participants’ position in the County’s investment pool is the same as the value of the pool shares. The method used to determine the value of participants’ equity withdrawn is based on the book value of the participants’ percentage at the date of such withdrawal.

F. Inventories

Inventories are stated at cost (first-in, first-out basis) for governmental funds and lower of average cost or market for proprietary funds. Inventory recorded by governmental funds includes postage and materials, fleet vehicles and parts and supplies for roads. Governmental fund inventories are recorded as expenditures at the time the inventory is consumed. Reported inventories of governmental funds are equally offset by a fund balance reservation to indicate that portion of fund balance not available for future appropriation.

Inventory recorded in the proprietary funds mainly consists of maintenance supplies as well as pharmaceutical supplies maintained by the Center. Inventory is expensed as the supplies are consumed.

COUNTY OF MONTEREY


50


G. Property Taxes

Property taxes attach as an enforceable lien on secured and unsecured property as of January 1, and are levied as of July 1. Secured property taxes are due in two installments on November 1 and February 1 and become delinquent on December 10 and April 10, respectively. Unsecured property taxes are due on July 1 and become delinquent, if unpaid, on August 31. The County bills and collects its own property taxes and also collects such taxes for cities, schools, and special districts.

H. Capital Assets

Capital assets (including infrastructure) are recorded at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, bridges, lighting system, drainage system, dams and water systems. The County defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. For infrastructure and buildings, the capitalization threshold is $100,000. Capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide statements and proprietary funds.

The estimated useful lives are as follows:

Infrastructure (except for the maintained pavement subsystem) 15 to 50 years Structures and improvements 40 to 50 years Equipment 3 to 25 years The County has four networks of infrastructure assets – roads, lighting, drainage system, dams and water system.

I. Compensated Absences (Accrued Vacation, Paid-Time-Off, Sick Leave, and Compensatory Time)

Vacation and Paid-Time-Off

Unused vacation and paid-time-off (PTO) leaves may be accumulated up to a specified maximum cap based on an employee’s bargaining unit or management group.

COUNTY OF MONTEREY


51


I. Compensated Absences (Accrued Vacation, Paid-Time-Off, Sick Leave, and Compensatory Time) (continued)

Vacation and Paid-Time-Off (continued)

Vacation and PTO leaves are paid to the employee at the time of separation from County employment. Some County employees have an option to buy back up to 80 hours of vacation or PTO leave. The current portion of the liability for vacation and PTO leaves is based on an estimated percentage of employees that will separate from County employment in the next fiscal year (turnover rate), applied to the total liability for vacation and PTO leaves. Sick Leave

Sick Leave can be accumulated indefinitely. Upon retirement or death, unused sick leave is paid up to 500 hours or 750 hours if an employee opts to exchange time to pay for health benefits. All unused sick leave above the 500-750 hours or any unused sick leave for employees separated from the County for other reasons is forfeited.

Compensatory Time

Compensatory time-off can be accrued in lieu of overtime payments. An employee can accumulate compensatory time-off up to 240 hours or 480 hours for public safety and seasonal workers. The compensatory time-off balances are expected to be used within the next fiscal year. All compensatory time-off balances are considered current year liabilities.

The County includes its share of Social Security and Medicare taxes payable on behalf of the employees in the accrual for compensated absences.

J. Bond Issuance Costs and Premium Discounts

In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using a method that approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Unamortized bond issuance costs are reported on the statement of net assets and amortized over the term of the related debt.

COUNTY OF MONTEREY


52


J. Bond Issuance Costs and Premium Discounts (continued)

Gains or losses from advance refundings are deferred and amortized as interest expense over the life of the new refunding debt.

In the fund financial statements, governmental fund types recognize bond premiums and discount, as well as bond issuance costs, during the current period. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

K. Interfund Transactions

Interfund transactions are reflected as either loans, services provided/(received), reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

Services provided/(received), deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.

L. Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

COUNTY OF MONTEREY


53


M. Budgetary Basis of Accounting

In accordance with the provisions of Sections 29000 and 29143, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year on or before August 30. Budgeted expenditures are enacted into law through the passage of an Appropriation Ordinance. This ordinance mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the County’s Board of Supervisors.

An operating budget is adopted each fiscal year for the majority of the Governmental Funds. Expenditures are controlled at the appropriation unit level for the County. Appropriation unit level expenditures may not legally exceed appropriations. Any amendments or transfers of appropriations between departments or funds are authorized by the County Administrator’s office and must be approved by the Board of Supervisors. Supplementary appropriations normally financed by unanticipated revenues during the year must be approved by the Board of Supervisors. Budgeted amounts in the budgetary financial schedules are reported as originally adopted and as amended during the fiscal year by resolutions approved by the Board of Supervisors. The amounts reported in the budgetary basis differ from the basis used to present the basic financial statements in accordance with generally accepted accounting principles (GAAP). The County uses an encumbrances system as an extension of normal budgetary accounting for the general, special revenue, and debt service funds and to assist in controlling expenditures of the capital projects funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Unencumbered appropriations lapse at year-end. Encumbered appropriations are carried forward in the ensuing year’s budget. An annual budget was not adopted for the Natural Disaster Assistance special revenue fund.

COUNTY OF MONTEREY


54

Note 2: Cash and Investments

Cash and investments for most County activities are included in an investment pool. The investment pool includes both voluntary and involuntary participation from external entities. The State of California statutes require certain special districts and other governmental entities to maintain their cash surplus with the County Treasurer.

The County investment pool is not registered with the Securities and Exchange Commission as an investment company. Investments made by the Treasurer are regulated by the California Government Code and by the County’s investment policy. The objectives of the policy are, in order of priority: safety, liquidity, yield, and public trust.

As of June 30, 2010, the County’s cash, deposits and investments were as follows:

With FiscalPooled Agents Other Total

Imprest cash and cash on hand 81,615$ --$ 25,678$ 107,293$ Deposits with financial institutions 6,412,973 921,012 2,770,457 10,104,442 Outstanding warrants and wires (16,532,456) -- -- (16,532,456) Investments 972,788,523 17,261,423 -- 990,049,946

Totals 962,750,655$ 18,182,435$ 2,796,135$ 983,729,225$

Total cash and investments at June 30, 2010 were presented on the County’s financial statements as follows:

Primary government 312,019,502$ Investment trust fund 622,150,426 Agency funds 27,137,440 Discretely presented component unit 22,421,857

Total cash and investments 983,729,225$

Investments The following table identifies the investment types that are authorized for the County by the California Government Code or the County’s investment policy, wherever is more restrictive. The table also identifies certain provisions of the County’s investment policy that address interest rate risk, credit risk, and concentration risk.

COUNTY OF MONTEREY


55

Note 2: Cash and Investments (continued)

Investments (continued) Maximum Maximum

Authorized Maximum Percentage InvestmentInvestment Type Maturity of Portfolio in One Issuer

Local agency bonds 5 years None 5%U.S. treasury obligations 5 years None NoneState of California obligations 5 years None 5%U.S. agency securities 5 years None NoneBanker's acceptances 180 days 40% 5%Commercial paper 270 days 40% 5%Negotiable CDs/CD placement service 5 years 30% 5%Repurchase agreements 1 year 20% NoneReverse repurchase agreements 92 days 20% NoneMedium term notes 5 years 30% 5%Mutual/money market funds N/A 20% 5%Collateralized bank deposits 5 years None 5%Mortgage pass-through securities 5 years 20% 5%Time deposits 2 years None NoneLocal Agency Investment Fund (LAIF) N/A None* None

* The investment policy limits the pool's investments in LAIF to $40,000,000 per account,regardless of the percentage this represents.

At June 30, 2010, the County had the following investments:

Interest Carrying Fair WAMRates Maturities Par Value Value (Years)

Investments in investment poolFederal agency obligations 0.375% - 6.875% 7/1/2010 - 6/8/2015 371,250,000$ 376,273,882$ 373,533,587$ 1.14 U.S. treasury obligations 0.250% - 5.750% 8/15/2010 - 4/30/2011 190,000,000 193,417,861 191,850,100 0.48 Medium term notes 0.433% - 6.450% 2/1/2011 - 11/1/2012 54,000,000 55,304,790 54,807,910 1.34 Negotiable CDs 0.400% 2/24/2011 10,000,000 10,000,000 9,974,400 0.65 Commercial paper 0.350% 10/4/2010 10,000,000 9,982,694 9,975,700 0.26 Money market mutual funds Variable On Demand 142,047,954 142,047,954 142,047,954 - California asset management program Variable On Demand 95,761,342 95,761,342 95,761,342 - California Local Agency Investment Fund Variable On Demand 90,000,000 90,000,000 90,000,000 -

Total investment pool excluding defaulted securities 963,059,296$ 972,788,523$ 967,950,993$ 0.62

Default securitiesLehman Brothers medium-term notes N/A In Default 10,000,000$ --$ --$ N/A

Total investment pool 973,059,296$ 972,788,523$ 967,950,993$

Investments outside investment poolCash held with fiscal agent

Money market mutual funds Variable On Demand 4,845,048$ 4,845,048$ 4,845,048$ - Investment contract 4.851%-5.171% 7/29/2037 - 9/1/2038 12,416,375 12,416,375 12,416,375 27.27 Total outside investment pool 17,261,423$ 17,261,423$ 17,261,423$

COUNTY OF MONTEREY


56


Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the County manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. The County limits its exposure to interest rate risk inherent in its portfolio by managing the investment maturities, the weighted average maturity of its portfolio, as well as limiting the weighted average maturity to two years or less. Credit Risk and Concentration of Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The County Treasurer mitigates these risks by holding a diversified portfolio of high quality investments. The adopted investment policy contains specific limitations on investments by credit quality, maturity length and the maximum allocation by asset class. In all instances, the adopted investment policy is equal to or more restrictive than applicable codified statutes.

Commercial paper obligations must be rated a minimum of F1 by Fitch, P1 by Moody’s or A1 by Standard & Poor’s. Corporate bonds must be rated A or better by one of these three rating agencies. In addition, total exposure of all asset classes to any single issuer shall not exceed 5% of the 12-month projected minimum size of the portfolio, other than securities issued by the U.S. Government, its agencies and sponsored enterprises.

The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the County Investment Pool’s fair value at June 30, 2010.

COUNTY OF MONTEREY


57


Credit Risk and Concentration of Credit Risk (continued)

Standard & % ofMoody's Poor's Portfolio

U.S. treasury obligations Not rated Not rated 19.80%Federal agency obligations AAA AAA 38.59%Commercial paper P-1 A-1+ 1.03%Negotiable CDs P-1 A-1+ 1.03%Medium-term notes A1 AA- 1.57%Medium-term notes Aa3 AA- 1.06%Medium-term notes Aa2 AA+ 2.63%Medium-term notes Aa3 A+ 0.41%Money market mutual funds Not rated Not rated 14.68%California asset management fund AAA Not rated 9.90%California local agency investment fund Not rated Not rated 9.30%

Total 100.00%

As of the year ended June 30, 2010, the following Federal Agency Obligations, individually, were more than 5% of the County’s pooled investments.

Issuer AmountFederal Home Loan Bank 166,919,987$ Federal Home Loan Mortgage Corporation 90,602,700 Federal National Mortgage Association 85,692,200 Custodial Credit Risk Custodial credit risk for investments is the risk that the County will not be able to recover the invested securities that are in the possession of an outside party. The County’s investment policy requires the use of a safekeeping agent to mitigate custodial risk. Securities are invested on a “Delivery vs. Payment” basis using the custodian agent. In no case does the County engage in securities purchases that are held in broker or dealer accounts. At June 30, 2010, the County’s investment pool had no securities exposed to custodial risk.

COUNTY OF MONTEREY


58


Local Agency Investment Fund The County Treasurer’s Pool maintains an investment in the State of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the state in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer’s Office. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California Government Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. At June 30, 2010, the County’s investment position in LAIF was $90 million, which approximates fair value and is the same as the value of the pool shares which is determined on an amortized cost basis. The total amount invested by all public agencies in PMIA on that day was $69.6 billion. Of that amount, 5.42% was invested in structured notes and asset-backed securities with the remaining 94.58% invested in other non-derivative financial products. Investment Trust of California Joint Powers Authority Pool The County Treasurer’s Pool maintains an investment in the Investment Trust of California Joint Powers Authority Pool (CalTRUST). CalTRUST is not registered with the Securities and Exchange Commission as an investment company, but is overseen by a Board of Trustees composed of officials of the public agencies that participate in CalTRUST. The fair value of the County’s position in the pool is approximately the same as the value of the pool shares.

California Asset Management Program Joint Powers Authority Pool

The County Treasurer’s Pool maintains an investment in the California Asset Management Program Joint Powers Authority Pool (CAMP). CAMP is not registered with the Securities and Exchange Commission as an investment company, but is overseen by a Board of Trustees composed of officials of the public agencies that participate in CAMP. CAMP’s investments are limited to those permitted by Government Code Section 53601. The fair value of the County’s position in the pool is approximately the same as the value of the pool shares.

COUNTY OF MONTEREY


59


County Investment Pool Condensed Financial Statements The following represents a condensed statement of net assets and changes in net assets for the Treasurer’s investment pool as of June 30, 2010: Statement of net assets

Net assets held for pool participants 962,750,655$

Equity of internal pool participants 340,600,229$ Equity of external pool participants 622,150,426

Total net assets 962,750,655$

Statement of changes in net assets

Net investment earnings 9,934,776$ Investment expenses (810,201) Net contribution from pool participants 1,659,385

Change in net assets 10,783,960

Net assets at July 1, 2009 951,966,695

Net assets at June 30, 2010 962,750,655$

The County has not provided nor obtained any legally binding guarantees during the fiscal year ended June 30, 2010 to support the value of shares in the pool.

Note 3: Interfund Transactions

The composition of interfund balances as of June 30, 2010, is as follows:

Due to/from other Funds

Receivable fund Payable Fund Amount

Other governmental funds Other governmental funds 447,842$ General fund Other governmental funds 23

Totals 447,865$

COUNTY OF MONTEREY


60

Note 3: Interfund Transactions (continued)

Due to/from other Funds (continued)

Amounts due to and from other funds are for tax increment due as of the end of the fiscal year and temporary loans to cover deficit cash.

Advances to/from other Funds

Receivable fund Payable Fund Amount

Community development Other governmental funds $ 150,000 Other governmental funds Other governmental funds 60,295

$ 210,295

The above interfund advances were to advance funds to fund certain redevelopment projects and to fund redevelopment payments to the Supplementary Education Revenue Augmentation Fund as required by legislation. These loans are long-term loans that are not expected to be repaid during the next fiscal year.

Transfers

Transfers are indicative of funding for capital projects, debt service, subsidies of various County operations and re-allocations of special revenues. Transfers between funds for the year ended June 30, 2010, were as follows:

Transfer from Transfer to Amount

General fund Road fund $ 2,087,421 Other governmental funds 16,882,610

18,970,031

Road fund General fund 300,000

Other governmental funds General fund 625,000 Road fund 800,000 Other governmental funds 36,335,421

37,760,421 Totals $ 57,030,452

COUNTY OF MONTEREY


61

Note 4: Receivables

Receivables as of June 30, 2010, for the County’s individual major, nonmajor, internal service, and enterprise funds are as follows:

Other NatividadGeneral Community Road Facility Master Governmental MedicalFund Development Fund Plan Implementation Funds Center

Receivables:Accounts - net 16,917,292$ --$ --$ 345,874$ 1,928,212$ 18,700,372$ Taxes receivable 13,081,630 -- -- -- 1,731,323 -- Due from other agencies 40,506,060 276,804 1,511,897 -- 2,434,286 3,066,707

Totals 70,504,982$ 276,804$ 1,511,897$ 345,874$ 6,093,821$ 21,767,079$

Notes receivable balances of $19,593,980 are not expected to be collected within the next fiscal year.

At June 30, 2010, accounts receivable reported by Natividad Medical Center were reduced by allowances for doubtful accounts and contractual adjustments as follows:

Allowance for doubtful accounts $ 19,982,706 Allowance for contractual adjustments 94,012,423 $ 113,995,129 Governmental funds report deferred revenue in connection with receivables for revenues considered unavailable to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. As of June 30, 2010, the various components of deferred revenue and unearned revenue in the governmental funds were as follows:

Unavailable Unearned TotalNotes receivable issued from grants on a revolving basis --$ 19,023,266$ 19,023,266$ Grant drawdowns prior to meeting all eligibility requirements -- 44,468,476 44,468,476 Receivables collected after the period of availability 11,717,976 -- 11,717,976

Totals 11,717,976$ 63,491,742$ 75,209,718$

Assembly Bill X4 15 Mandatory Loan

On July 28, 2009, the California legislature and the Governor passed the State budget which included the suspension of the property tax protection provisions of Proposition 1A (2004) for FY 09-10 and required cities, counties and special districts to loan to the State 8% of the amount of property tax revenues apportioned to them in FY 08-09. This loan is known as the AB X4 15 Mandatory Loan (Loan).

COUNTY OF MONTEREY


62

Note 4: Receivables (continued)

Assembly Bill X4 15 Mandatory Loan (continued)

The provision also created an option, known as the Proposition 1A Securitization, for California public agencies to sell their Loan to the California Statewide Communities Development Authority. While the loan to the State was mandatory for all agencies, the participation in the securitization program was voluntary.

The law required the Loan from agencies to the State to be transferred in two equal installments on January 15, 2010 and May 3, 2010. Those agencies participating in the Proposition 1A Securitization program received proceeds from the securitization for the same amounts on the same dates. The County chose to participate in the Proposition 1A Securitization, resulting in the Loan having no significant impact on its current year cash flow or financial statements.

Note 5: Capital Assets

Capital asset activity for the year ended June 30, 2010 was as follows:

Balance Transfers & BalanceJuly 1, 2009 Additions Retirements Adjustments June 30, 2010

Governmental activitiesCapital assets, not being depreciated:

Land 174,834,273$ 2,401,579$ --$ --$ 177,235,852$ Construction in progress 155,972,711 44,792,453 -- (77,072,393) 123,692,771

Total capital assets, not being depreciated 330,806,984 47,194,032 -- (77,072,393) 300,928,623

Capital assets, being depreciated:Infrastructure 491,439,776 -- -- 33,441,522 524,881,298 Structures and improvements 141,718,842 1,759,069 (3,218,446) 33,352,089 173,611,554 Equipment 79,252,710 4,172,420 (1,213,436) 9,311,496 91,523,190

Total capital assets, being depreciated 712,411,328 5,931,489 (4,431,882) 76,105,107 790,016,042

Less accumulated depreciation for:Infrastructure (279,584,597) (13,282,212) -- -- (292,866,809) Structures and improvements (44,722,209) (4,516,988) 1,168,337 -- (48,070,860) Equipment (58,491,088) (7,994,396) 1,052,065 -- (65,433,419)

Total accumulated depreciation (382,797,894) (25,793,596) 2,220,402 -- (406,371,088)

Total capital assets, being depreciated, net 329,613,434 (19,862,107) (2,211,480) 76,105,107 383,644,954

Government activities capital assets, net 660,420,418$ 27,331,925$ (2,211,480)$ (967,286)$ 684,573,577$

COUNTY OF MONTEREY


63

Note 5: Capital Assets (continued)

Balance Transfers & BalanceJuly 1, 2009 Additions Retirements Adjustments June 30, 2010

Business-type activitiesCapital assets, not being depreciated:

Construction in progress 1,276,278$ 5,112,555$ --$ (4,691,473)$ 1,697,360$ Total capital assets, not being depreciated 1,276,278 5,112,555 -- (4,691,473) 1,697,360

Capital assets, being depreciated:Structures and improvements 153,297,004 121,320 -- 606,318 154,024,642 Equipment 42,217,572 2,235,657 -- 4,085,155 48,538,384

Total capital assets, being depreciated 195,514,576 2,356,977 -- 4,691,473 202,563,026

Less accumulated depreciation for:Structures and improvements (51,092,606) (4,004,414) -- -- (55,097,020) Equipment (32,077,889) (3,349,649) -- -- (35,427,538)

Total accumulated depreciation (83,170,495) (7,354,063) -- -- (90,524,558)

Total capital assets, being depreciated, net 112,344,081 (4,997,086) -- 4,691,473 112,038,468

Business-type activities capital assets, net 113,620,359$ 115,469$ --$ --$ 113,735,828$

Depreciation

Depreciation expense was charged to governmental functions as follows:

General government 8,342,882$ Public safety and protection 1,638,748 Public ways and facilities 13,904,278 Health and sanitation 373,894 Public assistance 173,984 Education 57,877 Recreation and cultural services 568,978 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 732,955

Total depreciation expense - Governmental functions 25,793,596$

Depreciation expense was charged to the business-type activities as follows: Natividad Medical Center

OperationsRental property (netted with rental income in 7,177,782$ non-operating section) 176,281

7,354,063$

COUNTY OF MONTEREY


64

Note 6: Leases

Operating Leases

The County has commitments under long-term and personal property operating lease agreements. During the fiscal year ended June 30, 2010, the County paid rents on these leases of $8,476,132. Future minimum lease payments are as follows:

Governmental Business-TypeActivities Activities

Year Ended June 30:2011 6,578,190$ 304,944$ 2012 6,243,605 304,944 2013 4,245,695 157,192 2014 3,947,561 50,203 2015 3,641,914 --

2016-2020 14,060,272 -- 2021-2025 10,274,700 -- 2026-2027 4,109,880 --

Total minimum lease payments 53,101,817$ 817,283$

However, the County believes that it would be able to terminate the leases early, should the need arise, based on California case City of Los Angeles v. Offner, 19 Cal.2d 483 dated February 13, 1942.

Capital Leases The County leases equipment under certain lease obligations accounted for as capital leases. Included in the governmental and business-type activities are the following capital asset amounts under capital leases:


Equipment 672,732$ 4,876,880$ Less: accumulated depreciation (416,883) (4,876,880)

Totals 255,849$ --$

COUNTY OF MONTEREY


65

Note 6: Leases (continued)

Capital Leases (continued)

The following is a schedule of future minimum lease payments under capital leases together with the present value of future minimum lease payments as of June 30, 2010:


Year Ended June 30:2011 102,512$ 153,337$ 2012 81,932 -- 2013 47,559 -- 2014 41,274 -- 2015 11,651 --

Totals 284,928 153,337 Less: Amount representing interest (29,079) (2,686) Present value of future minimum lease payments 255,849$ 150,651$

Note 7: Rental Income Under Operating Leases

The following is a schedule of minimum future rental income on noncancellable operating leases as of June 30, 2010. These operating leases, for vacant office spaces located on the campus of Natividad Medical Center, contain no material restrictions. All are to be paid to Natividad Medical Center.

Business-TypeActivities

Year Ended June 30:2011 563,591$ 2012 394,554 2013 93,343

Total 1,051,488$

Total rental income under operating lease agreements during the year ended June 30, 2010 was $1,071,834.

COUNTY OF MONTEREY


66

Note 8: Long-Term Liabilities

Legal Debt Limit

The County’s legal debt limit for the year ended June 30, 2010 was $614 million. This limit is based on 1.25% of the net assessed valuation of property within the County. The County’s outstanding long-term issues payable is approximately $281.7 million, but none is applicable to the debt limit. The County has complied with all significant debt covenants.

Summary of Long-Term Liabilities

Interest Principal Date of Amount OutstandingGovernmental activities Maturity Rates Installments Issue Authorized June 30, 2010

Certificates of participation2007 issue 2008-2038 4.0%-5.0% $2,785,000-$6,845,000 2007 $ 144,400,000 $ 132,800,000 (defeased the 1993 sheriff facility and the2001 issue master plan financing issue plusnew monies for completion of public healthand court related facilities)

Judgment obligation bonds 2004-2014 3.0%-4.0% $695,000-$870,000 2004 7,470,000$ $ 3,275,000 (liquidate litigation liabilities)

Revenue bondsAgencies under Board of Supervisors 2004-2036 5.0% $16,000-$37,000 1980-95 $ 56,859,700 993,000$

Revenue bondsAgencies under Board of Supervisors July 30, 2038 4.0%-5.0% $550,000 - $ 2,085,000 2008 $ 32,855,000 32,855,000$

(finance Salinas Valley water project)Notes payable – Redevelopment Agency 2004-2010 5.73%-6.49% $25,000 2001 250,000$ $ 209

(finance redevelopment activities)Notes payable – Redevelopment Agency 2014 3.0% Principal and 2004 936,146$ 36,146$

(finance redevelopment activities) interest due 2014Notes payable – Parks and Recreation

(acquire recreational properties)San Antonio Lakes Resort July 15, 2023 5.0% $33,095 2007 $ 4,185,000 3,650,213$ Lake Nacimento Resort July 15, 2023 5.0% $89,478 2007 $ 11,315,000 9,869,116$

Loans payable – Bureau of ReclamationAgencies under Board of Supervisors 2004-2037 1.65%-7.63% $16,847-$1,207,699 1995 $ 35,035,790 29,785,024$ (infrastructure and facility improvements)

Special assessment bonds with governmental commitment:

General County 2004-2025 4.25%-7.2% $4,000-$26,000 1984-93 257,000$ $ 150,000 (infrastructure and facility improvements)

Business-type activities

Certificate of participation(refunding debt used to make facility improvements)1998 series E refunding 2004-2027 4.5%-4.75% $2,715,000-$4,935,000 1998 $ 77,375,000 $ 16,800,000 2007 refunding 2008-2028 4.0%-5.0% $250,000-$565,000 2007 $ 8,280,000 7,495,000$ 2009 refunding 2010-2023 2.0%-5.25% $2,175,000-$4,225,000 2009 43,700,000$ 43,700,000$

COUNTY OF MONTEREY


67

Note 8: Long-Term Liabilities (continued)

Summary of Long-Term Liabilities (continued)

The following is a summary of long-term liabilities transactions for the year ended June 30, 2010:

AmountsBalance Balance Due Within

July 1, 2009 Additions Deletions June 30, 2010 One YearGovernmental activities:

Certificates of participation 136,260,000$ --$ 3,460,000$ 132,800,000$ 3,630,000$ Unamortized premium 2,123,209 -- 39,900 2,083,309 -- Unamortized refunding loss (2,543,173) -- (46,327) (2,496,846) --

Judgment obligation bonds 4,015,000 -- 740,000 3,275,000 770,000 Unamortized premium 54,414 -- 10,883 43,531 --

Revenue bonds 33,901,000 -- 53,000 33,848,000 607,000 Unamortized premium 752,394 -- 11,613 740,781 --

Notes payable - RDA 2,083 -- 1,874 209 209 Notes payable - RDA CA Housing Finance Agency 416,146 -- 380,000 36,146 -- Loans payable 45,121,624 -- 1,817,270 43,304,354 1,858,866 Special assessment bonds 156,000 -- 6,000 150,000 7,000 Capital leases 253,132 84,761 124,861 213,032 86,154 Compensated absences 30,846,837 22,182,229 20,701,140 32,327,926 13,660,802 Estimated self-insurance liabilities 47,102,549 14,221,882 8,819,552 52,504,879 12,476,124 Estimated landfill postclosure costs 2,915,243 -- 208,227 2,707,016 208,227

Total governmental activities long-term liabilities 301,376,458$ 36,488,872$ 36,327,993$ 301,537,337$ 33,304,382$

Business-type activitiesCertificates of participation 71,265,000$ 43,700,000$ 46,970,000$ 67,995,000 2,425,000$

Unamortized premium (discount) (1,027,241) 2,356,020 (1,136,095) 2,464,874 -- Unamortized refunding loss (4,742,427) -- 825,187 (5,567,614) --

Net certificates of participation 65,495,332 46,056,020 46,659,092 64,892,260 2,425,000 Capital leases 1,399,786 -- 1,249,135 150,651 150,651 Compensated absences 5,873,565 6,056,982 5,335,681 6,594,866 5,935,379

Total business-type activities long-term liabilities 72,768,683$ 52,113,002$ 53,243,908$ 71,637,777$ 8,511,030$

Estimated self-insurance liabilities are liquidated by the General Fund and the internal service funds. Compensated absences are generally liquidated by the General Fund and related special revenue funds. Estimated landfill postclosure costs are liquidated from the General Fund.

COUNTY OF MONTEREY


68


Payment Requirements for Debt Service

As of June 30, 2010, annual debt service requirements of governmental activities to maturity are as follows:

Year Ending Bonds Payable Certificates of Participation Loans and Notes PayableJune 30: Principal Interest Principal Interest Principal Interest

2011 1,384,000$ 1,761,052$ 3,630,000$ 6,007,045$ 1,859,075$ 1,542,276$ 2012 1,435,000 1,703,956 3,795,000 5,839,570 1,902,629 1,387,044 2013 1,498,000 1,647,559 3,980,000 5,645,195 1,948,685 1,318,043 2014 1,558,000 1,588,681 4,180,000 5,441,195 2,033,301 1,256,372 2015 716,000 1,542,396 4,375,000 5,249,195 2,048,166 1,172,670

2016 - 2020 4,125,000 7,163,781 23,010,000 22,994,462 11,104,853 4,655,149 2021 - 2025 5,000,000 6,038,287 24,395,000 17,488,387 8,661,659 2,602,317 2026 - 2030 6,067,000 1,049,675 28,785,000 11,600,887 5,580,543 1,677,804 2031 - 2035 7,740,000 -- 26,745,000 4,725,340 5,799,889 884,826 2036 - 2039 7,750,000 -- 9,905,000 696,263 2,401,909 111,360

37,273,000$ 22,495,387$ 132,800,000$ 85,687,539$ 43,340,709$ 16,607,861$

As of June 30, 2010, annual debt service requirements of business-type activities to maturity are as follows:

Year Ending Certificates of ParticipationJune 30: Principal Interest

2011 2,425,000$ 3,300,839$ 2012 2,660,000 3,058,393 2013 2,755,000 2,959,418 2014 2,870,000 2,844,093 2015 3,005,000 2,711,643

2016-2020 17,445,000 11,103,176 2021-2025 22,340,000 6,181,257 2026-2029 14,495,000 985,102

67,995,000$ 33,143,921$

COUNTY OF MONTEREY


69


New Debt Issuance The County of Monterey Public Improvement Corporation issued 2009 Refinancing Project Certificates of Participation on December 1, 2009 in the amount of $43,700,000 to partially refund the 1998 Natividad Medical Center Improvement Project, Series E originally issued in the amount of $77,375,000. The new bonds bear interest from 2% to 5.25% and are due in annual installments ranging from $2,175,000 to $4,225,000 through August 1, 2023. The bonds are payable pursuant to a lease agreement with NMC. The new issue will reduce debt service payments for NMC by $1,495,140 with an economic gain of $1,380,741 or 3.16%.

Irrevocable Trust

In fiscal year 2006-07, the County issued 2007 refunding certificates of participation to refund existing debt. The proceeds of the refunded bonds were placed in an irrevocable trust for the purpose of generating resources for all future debt payments in accordance with the schedule of remaining payments due. As a result, the refunded bonds are considered to be defeased and the liability does not appear on the governmental and business-type activities’ columns of the Statement of Net Assets and the Proprietary Fund Statements for Natividad Medical Center. As of June 30, 2010, certificates defeased had the following outstanding balances:

Governmental activities:2001 master plan financing certificates of participation 70,425,000$

Pledged Revenues

The Monterey County Financing Authority has pledged certain specified assessments, all Hydroelectric Facility net revenues, all ad valorem taxes and all annexation fees to secure the payment of principal and interest on the bonds in accordance with the terms and the provisions of the Indenture. The Indenture provides that the pledge shall constitute a first lien on all such assets. Proceeds from the bonds provided financing for the Salinas Valley Water Project – an effort to halt further seawater intrusion, provide flood protection, and create new water supplies for the Salinas Valley. Total principal and interest remaining on the bonds is $61,966,314, payable through June 2038. Interest paid for the current fiscal year was $1,597,913. No principal was due. Net pledged revenues for the fiscal year ended June 30, 2010 were $1.1 million.

COUNTY OF MONTEREY


70

Note 9: Short-Term Note Payable

On July 1, 2009, the County issued a $55 million tax and revenue anticipation note to manage the temporary cash flow deficits that occur when the timing of required expenditures does not coincide with the timing of the collection of taxes and other revenues. The note was issued in anticipation of collection of taxes and other revenues to be received during the fiscal year ended June 30, 2010, and was repaid with taxes and other revenues on June 30, 2010. The County incurred and paid interest of $0.2 million.

Short-term note payable activity for the year ended June 30, 2010, was as follows:

Balance BalanceJuly 1, 2009 Additions Retirements June 30, 2010

Short-term note payable --$ 55,000,000$ 55,000,000$ --$

Note 10: Net Assets/Fund Balances

Net Assets

The government-wide and business-type activities financial statements utilize a net assets presentation. Net assets are categorized as invested capital assets (net of related debt), restricted and unrestricted. These categories are described below:

• Invested in Capital Assets, Net of Related Debt – This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

• Net assets invested in capital assets, net of related debt, was comprised of the following:


Capital assets, net of accumulated depreciation 684,573,577$ 113,735,828$ Outstanding principal of capital-related debt (201,975,621) (65,042,911) Unspent debt proceeds 16,759,196 492,396

Net assets, invested in capital assets, net of related debt 499,357,152$ 49,185,313$

COUNTY OF MONTEREY


71

Note 10: Net Assets/Fund Balances (continued)

Net Assets (continued)

• Restricted Net Assets – This category represents net assets that are subject to constraints either (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. As of June 30, 2010, the County did not have any net assets that were restricted by enabling legislation.

• Unrestricted Net Assets – This category represents net assets of the County, not restricted for any project or other purpose.

Fund Balances

In the fund financial statements, reserves and designations segregate portions of fund balance that are either not available or have been earmarked for specific purposes. The various reserves and designations are established by actions of the Board and management and can be increased, reduced or eliminated by similar actions.

The term “reserved” is used to indicate that a portion of reported fund balance is (1) legally restricted to a specific use or (2) not available for appropriation or expenditure. The County’s management will sometimes designate portions of unreserved (available) fund balance based on tentative future spending plans. Designated portions of fund balance represent financial resources legally available for uses other than those tentatively planned.

The County has “reserved” fund balances as follows:

• Reserved for encumbrances – to reflect outstanding contractual obligations for which goods and services have not been received.

• Reserved for unavailable assets – to indicate that certain assets such as imprest cash, inventories, advances, prepaid items and land held for development and resale do not represent available spendable resources.

• Reserved for debt service – to indicate that the fund balance is restricted for the retirement of debt.

COUNTY OF MONTEREY


72

Note 10: Net Assets/Fund Balances (continued)

Fund Balances (continued)

The County has designated fund balance as follows to indicate that a portion of the governmental fund balance is designated for the following projects and purposes:

OtherGeneral Governmental

Fund Funds

Strategic $ 37,291,395 $ 734,724 Infrastructure improvements 15,000 9,934,810 Vehicle replacement 3,183,966 -- Health clinics 1,070,000 -- Social services 724,715 -- NGEN radio system design 3,155,563 -- Self-insurance 1,890,532 -- Contingency 11,546,486 -- Miscellaneous 1,804,166 9,706

Total other designations $ 60,681,823 $ 10,679,240

Note 11: Employee’s Retirement Plan and Post Retirement Benefits

Plan Description

The County of Monterey contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees’ Retirement Law. The County selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local County ordinance. CalPERS issues a separate comprehensive annual financial report which is available to the public. Copies of the CalPERS’ annual financial report may be obtained by contacting the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814.

COUNTY OF MONTEREY


73

Note 11: Employee’s Retirement Plan and Post Retirement Benefits (continued)

Funding Policy

Active plan members in PERS are required to contribute a percentage of the annual covered salary of their miscellaneous employees and of their public safety employees. County employees are represented by 18 bargaining units. Of these 18 units, 14 bargaining units represent miscellaneous employees for which the County pays the 7% PERS retirement. The required contribution rates for fiscal year 2009-10 were 9.927% for miscellaneous employees and 25.37% for public safety employees. The contribution requirements of the plan members are established by state statute and the employer contribution rate is established and may be amended by PERS.

Annual Pension Cost

For fiscal year 2009-10, the County’s annual pension cost was $36,331,853, and was equal to the County’s required and actual contributions.

Three-Year Trend Information for PERS

Annual Percentage Fiscal Pension of APC Year Ending Cost (APC) Contributed 06/30/10 $ 36,331,853 100% 06/30/09 35,512,168 100% 06/30/08 32,100,384 100% The required contribution for fiscal year 2009-10 was determined as part of the June 30, 2007 actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 3.25% to 14.45% depending on age, service and type of employment, and (c) 3.25% cost-of-living adjustment. Both (a) and (b) include an inflation component of 3.0%. The actuarial value of plan assets was determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a two to five year period depending on the size of investment gains and/or losses. The unfunded actuarial accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 2007 was thirty years.

COUNTY OF MONTEREY


74


Funded Status and Funding Progress The following is the funded status information (in thousands) for each plan as of June 30, 2009, the most recent actuarial valuation date:

Entry AgeNormal Actuarial Unfunded/ Annual UAAL asAccrued Value (Overfunded) Funded Covered a % ofLiability of Assets Liability Ratio Payroll Payroll

Miscellaneous 1,033,506$ 918,422$ 115,084$ 88.9% 255,212$ 45.09%Safety 395,268 293,618 101,650 74.3% 49,244 206.42%

The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The Monterey County Water Resources Agency (MCWRA) Plan Plan Description

The MCWRA plan of the County of Monterey contributes to the California Public Employees Retirement System (CalPERS), a cost-sharing multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees’ Retirement Law. The County selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local County ordinance. Information on this plan is available on a pooled-basis only and may be obtained by contacting the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814.

Funding Policy

Active plan members in CalPERS are required to contribute 7% for employees of their annual covered salary. The County makes the contributions required of MCWRA employees on their behalf and for their account. The County is required to contribute at an actuarially determined rate of 9.927% of annual covered payroll. The contribution requirements of plan members and the County are established and may be amended by PERS.

COUNTY OF MONTEREY


75


The Monterey County Water Resources Agency (MCWRA) Plan (continued) Annual Pension Cost

For fiscal year 2009-10, the County’s annual pension cost for the MCWRA plan was $384,006, and was equal to the County’s required and actual contributions.

Three-Year Trend Information for CalPERS

Annual Percentage Fiscal Pension of APC Year Ended Cost (APC) Contributed 06/30/10 $ 384,006 100% 06/30/09 355,669 100% 06/30/08 346,700 100%

Note 12: Other Post Employment Benefits (OPEB)

Plan Description

The County of Monterey Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan administered by the County. The Plan provides healthcare insurance benefits to eligible retirees. Benefit provisions are established and may be amended by the County.

The County provides retiree medical benefits through the California Public Employees’ Retirement System healthcare program. The County contributes the Public Employees’ Medical and Hospital Care Act (PEMHCA) minimum required employer contribution ($101 per month in 2010) towards the retiree monthly premium for eligible retirees participating in PEMHCA.

Funding Policy

The contribution requirements of the plan members and the County are established and may be amended by the County. The County prefunds all or a portion of the plan through the California Employers’ Retiree Benefit Trust (CERBT) by contributing up to 100% of the annual required contribution.

COUNTY OF MONTEREY


76

Note 12: Other Post Employment Benefits (OPEB) (continued)

Funding Policy (continued)

The annual required contribution (ARC) is an amount actuarially determined in accordance with the parameters of GASB Statement 45 – Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pension. The County’s ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize the unfunded actuarial liability over a period of 20 years. The fiscal year 2009-10 ARC is $3,202,000.

For fiscal year 2009-10, the amount of healthcare insurance benefits reimbursed to eligible retirees was $1,384,463. Of this amount, $605,223, was paid directly by the CERBT, while the County paid $779,240 to the OPEB trust to fund future retirees’ healthcare benefits.

CERBT is a tax-qualified irrevocable trust organized under Internal Revenue Code Section 115 and established to pre-fund retiree healthcare benefits. CERBT issues a publicly available financial report including GASB 43 – Financial Reporting for Postemployment Benefit Plans Other than Pension Plans disclosure information in aggregate with the other CERBT participating employers. That report may be obtained by contacting CalPERS, Executive Office, 400 P Street, Sacramento, CA 95814.

The following are the components of the County’s annual OPEB cost for the fiscal year ended June 30, 2010:

Annual Required Contribution (ARC) 3,202,000$ Interest on net OPEB obligation -- Adjustments to ARC -- Annual OPEB cost (expense) 3,202,000 Contributions made (1,384,463) Increase in net OPEB obligation 1,817,537 Net OPEB obligation, beginning of year 6,418,542 Net OPEB obligation, end of year 8,236,079$

Annual OPEB Cost and Net OPEB Obligation

For fiscal year 2009-10, the County’s annual OPEB cost (expense) of $3,202,000 was equal to the annual required contribution.

COUNTY OF MONTEREY


77


Annual OPEB Cost and Net OPEB Obligation (continued)

The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan (as described in the funding policy above), and the net OPEB obligation for fiscal years 2009-10 and the prior two fiscal years:

Fiscal Year

Ended

Annual

OPEB Cost

Percentage of Annual OPEB

Cost Contributed

Net OPEB

Obligation 6/30/10 6/30/09

$3,202,000 4,075,360

43.2% 19.5%

$ 8,236,079 6,418,542

6/30/08 3,711,000 15.4% 3,140,133

General Fund, Road Fund, Library, In-Home Supportive Services, Office of Employment Training, Community Development, Parks Lakes, and Water Resources funds have been used to liquidate the net other postemployment benefit obligation. Funded Status and Funding Progress

The funded status of the plan, based on an actuarial valuation as of June 30, 2009, the plan’s most recent actuarial valuation date, was as follows (amounts in thousands):

Actuarial accrued liability (AAL) $23,292 Actuarial value of plan assets 150 Unfunded actuarial accrued liability (UAAL) $23,142 Funded ratio (actuarial value of plan assets/AAL) 0.65% Covered payroll (active Plan members) $293,876 UAAL as a percentage of covered payroll 7.87%

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the Plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

COUNTY OF MONTEREY


78


Actuarial Methods and Assumptions

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the June 30, 2009 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 7.75% investment rate of return (net of administrative expenses), which is the expected long-term investment return on CERBT investments, and an annual healthcare minimum cost trend rate of 4.5% after 3 years (actual healthcare minimum costs were used for the first 3 years). This rate includes a 3% inflation assumption. The actuarial value of assets is equal to the market value. The UAAL is being amortized as a level percentage of projected payroll over 20 years on a closed basis. The remaining amortization period at June 30, 2010 was 17 years.

Note 13: Joint Powers Agreement

Natividad Medical Center (NMC) participates in the Beta Healthcare Group (BHG). The purpose of Program Beta (Program), established by a Joint Powers Agreement, is to self-insure member hospital districts for professional liability. The BHG administers the Program pursuant to the joint powers provision of the Government Code of the State of California. After a $5,000 deductible, the BHG provides payment in full on covered individual malpractice claims up to $5,000,000. Claims in excess of $5,000,000 are the responsibility of individual program participants. Also, after a $25,000 deductible, the BHG provides payment on covered directors, officers, and trustee liability claims up to an annual maximum of $500,000. NMC’s contribution to the program was approximately $807,000 in 2010.

COUNTY OF MONTEREY


79

Note 13: Joint Powers Agreement (continued)

Condensed financial information of the Program for the calendar year ended December 31, 2009, (audited by Larson & Rosenberger LLP) is as follows:

Cash and investments $ 378,532,491 Other assets 75,358,007

Total Assets $ 453,890,498

Loss reserves $ 251,050,158 Other liabilities 51,816,635 Fund balance 151,023,705

Total Liabilities and Fund Balance $ 453,890,498

Total Revenues $ 89,434,805 Total Expenses (58,325,343)Revenue in excess of expenses before minority interest,

member surplus funds, and change in unrealized gainson investments $ 31,109,462

Financial statements for the Program can be obtained from Beta Healthcare Group, 1443 Danville Blvd., Suite 200, Alamo, CA 94507-1973.

In January 1997, the County entered into a Joint Powers Agreement with the City of Salinas, the City of Gonzales, the City of Greenfield, the City of King, and the City of Soledad creating the Salinas Valley Waste Authority (Authority). The purpose of the Authority, established by the Joint Powers Agreement, is to undertake and perform: solid waste planning and program management, including collection services and siting; and the transfer and disposal of solid waste generated within each of the parties’ jurisdictional boundaries. The Authority administers the agreement pursuant to the joint powers provision of the Government Code of the State of California.

Financial statements for the Authority can be obtained from Salinas Valley Solid Waste Authority, 337 Melody Lane, Salinas, CA 93901.

COUNTY OF MONTEREY


80

Note 13: Joint Powers Agreement (continued)

Condensed financial information of the Authority for the fiscal year ended June 30, 2009 (the most current available) is as follows:

Cash and investments $ 8,134,014 Other assets 22,110,921 Capital assets, net 27,640,919 Total assets 57,885,854 Closure liability 12,376,496 Other liabilities 57,061,328 Total liabilities 69,437,824 Net assets (deficit) $ (11,551,970) Total operating revenues $ 15,298,739 Total operating expenses (19,782,305) Other revenues and expenses (1,458,903) Change in net assets $ (5,942,469)

COUNTY OF MONTEREY


81

Note 14: Landfill Closure and Postclosure Costs

State and federal laws and regulations require the County to place a final cover on all landfill sites when closed and, for thirty years after, perform mandated maintenance and monitoring functions at those sites. All County owned landfills are closed, thus only the liability for future maintenance and monitoring activities is shown on the statement of net assets. The estimated liability and total costs for the landfill sites are shown below:

Post Closure Groundwater Post ClosureLandfill Site Activities Monitoring Liability

Bradley 180,146$ 301,852$ 481,998$ San Ardo II 180,146 301,852 481,998 Lake San Antonio North Shore 180,146 301,852 481,998 Lake San Antonio South Shore 180,146 N/A 180,146 San Ardo I 180,146 N/A 180,146 Parkfield I 180,146 N/A 180,146 Parkfield II 180,146 N/A 180,146 Chualar 180,146 N/A 180,146 Arroyo Seco / Greenfield 180,146 N/A 180,146 Lockwood 180,146 N/A 180,146

Totals 1,801,460$ 905,556$ 2,707,016

Landfill costs as of June 30, 2010 11,223,875

Total estimated costs to June 30, 2023 13,930,891$

Post closure activities are comprised of costs which are estimated equally per site for the thirteen remaining years. The liability and total costs are estimated annually based on the premise that all equipment, facilities and services required to monitor and maintain the landfill sites were acquired as of June 30, 2010. Actual total costs may be higher due to future changes in technology or landfill laws and regulations.

The County is required by state and federal laws and regulations to provide annual funding to finance future post closure care costs. The County is in compliance with these regulations, establishing appropriations for these activities, based on the annual estimated liability, in each year’s annual budget.

COUNTY OF MONTEREY


82

Note 15: Commitments and Contingencies

In prior years, the Monterey County Water Resources Agency (MCWRA), a blended component unit of Monterey County, entered into an agreement with the Monterey County Water Pollution Control Agency (MCWPCA) to provide tertiary treated water. The MCWPCA built the tertiary water treatment plant and the MCWRA built the distribution pipelines from the plant to the users. Both projects were financed by loans between each agency and the Bureau of Reclamation and/or State Water Resources Control Board. A special assessment was established and is collected by the MCWRA. Based on the agreement between the MCWRA and the MCWPCA, the financing and operating expenses incurred by the MCWPCA on this project are paid by this special assessment on an advance basis from the MCWRA. The loans entered into directly between the MCWPCA and the lenders are not included in the County’s financial statements.

As of June 30, 2010, the outstanding loan balances of the MCWPCA related to the above project are as follows:

Loan from the Bureau of Reclamation $ 17,249,744 Loan from the State Water Resources Control Board $ 4,417,897 Arbitrage

The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. During the current year, the County performed calculations of excess investment earnings on various bonds and financings, and at June 30, 2010 does not expect to incur a significant liability.

Grant Entitlement

The County is a participant in a number of federal and state assisted programs. These programs are subject to compliance audits by the grantors. The audits of these programs for the fiscal year ended June 30, 2010 and certain earlier years have not been completed. Accordingly, the County’s compliance with applicable program requirements is not completely established. The amount, if any, of expenditures which may be disallowed by the grantors cannot be determined at this time. Management believes it has adequately provided for potential liabilities, if any, which may arise from the grantor’s audits.

COUNTY OF MONTEREY


83

Note 15: Commitments and Contingencies (continued)

Medi-Cal and Medicare Reimbursements

Natividad Medical Center’s Medi-Cal and Medicare cost reports for certain prior years are in various stages of review by the third-party intermediaries and, as such, have not been settled. Management believes it has adequately provided for any potential liabilities which may arise from the intermediaries’ audit.

Construction Commitments

At June 30, 2010, the County had ongoing construction commitments that totaled approximately $16.1 million.

Note 16: Natividad Medical Center – Net Patient Service Revenue and Government Programs

Natividad Medical Center (NMC) has agreements with third party payors to provide for payments to NMC at amounts different from its established rates. A summary of the basis of the payment arrangements with major third-party payors follows:

Medicare

Inpatient acute care services rendered to Medicare program beneficiaries are paid at predetermined prospective rates per discharge. These rates vary according to the diagnostic related group that the patient’s condition is classified under. Services other than inpatient acute care are paid based on a reimbursement methodology specific to the type of service which generally entails reimbursement rates at the lower of costs, charges, or a published limit. NMC is reimbursed at a tentative rate during the year that is later subject to final settlement after submission and audit of an annual cost report.

Medi-Cal

Inpatient acute care services rendered to Medi-Cal program beneficiaries are reimbursed under a cost reimbursement methodology that is limited to a maximum allowable rate per discharge. Outpatient hospital services are reimbursed based on a published fee schedule. Skilled nursing services are reimbursed at a published per diem rate. NMC is reimbursed at a tentative rate during the year that is later subject to final settlement after submission and audit of an annual cost report.

Short Doyle

Inpatient acute care services rendered to County mental health patients under the Short Doyle program are reimbursed based on a per diem rate specified in an agreement between NMC and the Monterey County Health Department.

COUNTY OF MONTEREY


84

Note 16: Natividad Medical Center – Net Patient Service Revenue and Government Programs (continued)

Other Third Party Payors

NMC contracts with numerous employers, other county departments, and health plans to provide health care services to their beneficiaries. Reimbursement varies by contract and can be based on a combination of per diem, fee schedule, or percent of charges payment rates.

During the year ended June 30, 2010, patients for which reimbursement was calculated under the third-party payor programs comprised approximately 100% of NMC’s gross patient services revenues, as follows:

Other third parties 31.6% Medi-Cal 49.5% Medicare 17.3% Short Doyle 1.6% Total 100.0%

The State of California provides funding from tobacco taxes and realignment to cover write-offs of accounts receivable pertaining to qualified indigent care under the California Health Care for Indigents program. NMC recognized funding under this program, net of amounts passed through other providers, of approximately $4.5 million in fiscal year 2010, as net patient services revenue.

NMC participates in the Medi-Cal Redesign Waiver Demonstration Program with the California Medical Assistance Commission.

Note 17: Natividad Medical Center Enterprise Fund – Charity Care

NMC maintains records to identify and monitor the level of charity care it provides. These records include the amount of charges foregone for services and supplies furnished under its charity care policy. The following information measures the level of charity care provided during the fiscal year ended June 30, 2010.

Charges foregone, based on established rate $ 45,582,847

Estimated costs and expenses incurred to provide charity care $ 11,000,115

Equivalent percentage of charity care patients to all patients served 7%

COUNTY OF MONTEREY


85

Note 18: Related Party Transactions

Incorporated in 1988, the Natividad Medical Foundation (Foundation) is a non-profit, non-governmental organization separately incorporated from NMC. Recognizing the need for quality health care and decreased funding from the Federal, State, and local levels, community leaders accepted the responsibility of providing financial assistance to NMC and developed the Natividad Medical Foundation.

The criteria established in GASB 39, Determining Whether Certain Organizations are Component Units, determines whether the Foundation is reported as a component unit of NMC. Since the revenues reported by the Foundation are not significant to NMC, the Foundation is not a component unit of NMC, but is a related party.

Note 19: Insurance and Contingent Liabilities

The County is exposed to various risk of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; natural disasters; medical malpractice; and unemployment. The County has chosen to establish risk financing internal service funds where assets are set aside for claim settlements associated with such risks of loss up to certain limits.

Excess coverage is provided by the California State Association of Counties Excess Insurance Authority (CSAC), a joint powers authority whose purpose is to develop and fund programs of excess insurance for its member counties. A board of directors consisting of representatives of its member counties govern CSAC. CSAC’s financial statements can be obtained at 3017 Gold Canal Drive, Rancho Cordova, CA 95670. The County paid premiums totaling approximately $1.2 million.

The County participates in the CSAC property program. The County’s deductible is $25,000 per occurrence. The County has primary coverage up to $25 million. Coverage in excess of this is provided by a private insurance carrier to an aggregate limit of $45 million.

On July 1, 1998, the County contracted with Liberty Mutual to provide workers compensation insurance coverage. Claims incurred/reported prior to July 1, 1996, remain a part of the County’s self-insurance program for workers compensation and are administered by Helmsman, a wholly owned subsidiary of Liberty Mutual.

The unpaid claims liabilities are based on the results of actuarial studies and include amounts for claims incurred but not reported and adjustment expenses. Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts, and other economic and social factors. General liability and workers’ compensation liabilities are carried at present value using a discount rate of

COUNTY OF MONTEREY


86

Note 19: Insurance and Contingent Liabilities (continued)

4%. Premiums are charged by the internal service funds using various allocation methods that include actual costs, trends in claims experience, and number of participants. Non-incremental claims adjustments have been included as part of the liability for claims and judgments. The County accounts for its risk financing activities in internal service funds for General Liability and Workers’ Compensation. All other risk financing activities are accounted for in the General Fund. As such, $656,168 of the County’s total estimated unpaid claims liabilities has been recorded as a current liability of the General Fund since that amount is expected to be paid within the succeeding year from expendable, available financial resources.

Changes in the balance of claims liabilities during fiscal years 2009-10 and 2008-09 for all self-insurance risks are approximately as follows:

2009-10 2008-09 Unpaid claims, beginning of year $ 47,102,549 $ 43,809,601 Estimated claims, incurred 14,221,882 19,907,246 Claim payments (8,819,552) (16,614,298) Unpaid claims, end of year $ 52,504,879 $ 47,102,549

The County is a defendant in several lawsuits arising in the normal course of business. In the aggregate these claims seek monetary damages in significant amounts. Litigation where loss to the County is reasonably possible has not been accrued in the accompanying financial statements; however, County Counsel estimates that several lawsuits could result in a significant loss. The County exposure in this case is estimated to be in the multi-million dollar range. Amounts of settlements has not exceeded insurance coverage in each of the past three years.

Note 20: Subsequent Events

Debt Issuance

In August 2010, the County entered into a tax and revenue anticipation note, due April 29, 2011. The note was for $40 million with an interest rate of 1.5%.

In September 2010, the County closed a refunding of the remaining $16,800,000 of 1998 Natividad Medical Center Improvement Bonds Series E which were not refunded in 2009. The refunding resulted in actual cash savings of $1,229,865 and a present value savings of $927,146 or 5.52%.

COUNTY OF MONTEREY


87

Note 20: Subsequent Events (continued)

Debt Issuance (continued)

In December 2010, the County approved a lease financing agreement of $8.5 million to finance the Next Generation Radio System Project. The project will enable Monterey County safety radio and data interconnectivity to comply with the narrowband mandate set by the FCC by January 2013. The County will act as lead borrower pursuant to a MOU among the various cities and safety agencies throughout the County. Each participant will pay their proportionate share of the construction costs determined by radio capacities on the system, which is collateralized by participants’ property tax revenue.

In December 2010, the County approved a $15 million lease financing for Natividad Medical Center to obtain (and reimburse for prior expenditures related to) medical equipment, electronic equipment, electronic health records software, and other projects contained in its five year Capital Improvement Plan.

Note 21: Restatement of Net Assets and Fund Balances

Adjustments resulting from errors or changes to comply with provisions of the accounting standards are treated as adjustments to prior periods. Accordingly, the County reports these changes as restatements of beginning fund balance / net assets.

The impact of the restatements on the fund balances/net assets as previously reported is presented below:

Government-Wide Statement of Activities Fund Statements

Governmental General Internal ServiceActivities Fund Funds

Net assets/fund balances, June 30, 2009, as previously reported 655,514,322$ 88,330,965$ (18,825,435)$

Prior period adjustments:Final recognition of revenue and expenses/expenditures 1,283,124 1,283,124 -- Correct revenue recognition from prior year 312,716 (231,558) 544,274

Net assets/fund balances July 1, 2009, as restated 657,110,162$ 89,382,531$ (18,281,161)$

COUNTY OF MONTEREY


88

Note 22: Stewardship, Compliance and Accountability

Deficit Fund Balances/Net Assets

The General Liability internal service fund had deficit net assets of $9,863,362 as of June 30, 2010. The County settled for a $15,500,000 Notes Payable in fiscal year 2007-08 from its Lakes Resort which caused the deficit in the fund. The Note amount with interest was approved to be paid in full by the County Board over 15 years. This fund experienced deficit five years ago when the County was on a pay-as-you-go basis. The County approved a 5 year plan to fund the deficit in fiscal year 2004-05. The original 5 year funding plan was successfully completed. The payment of Lakes’ liability will correct the deficit in this fund over the remaining 12 year period.

In addition, the Workers Compensation internal service fund had deficit net assets of $8,657,715 as of June 30, 2010. The County approved a 10 year plan to fund the deficit in fiscal year 2004-05. Prior to that the County was on a pay-as-you-go basis which caused the deficit in the fund. Due to budget constraints, the County approved a one year postponement of the deficit funding plan for fiscal year 2010-11 which will cause the County to go on a pay-as-you-go basis and may increase the deficit in this fund. The County anticipates continuing the funding plan starting in fiscal year 2011-12.

Note 23: Special Item

In compliance with California’s Trial Court Facilities Act of 2002, the County transferred one of four county-owned court facilities to the State of California. At the time of transfer, the County incurred a loss of $2,050,109, consisting of historical costs of $3,218,446 and accumulated depreciation of $1,168,337, for a net book value of $2,050,109.

Note 24: Extraordinary Item

In July 2009, legislation was approved to redirect a portion of redevelopment tax increment revenues to fund schools. For the year ended June 30, 2010, the Redevelopment Agency of the County of Monterey paid $2,170,500 as supplementary Education Revenue Augmentation Funds (ERAF) as required by legislation.

89

REQUIRED SUPPLEMENTARY INFORMATION

90


COUNTY OF MONTEREY

Required Supplementary Information For the Fiscal Year Ended June 30, 2010

91

COUNTY OF MONTEREY EMPLOYEE’S RETIREMENT PLAN SCHEDULE OF FUNDING PROGRESS The tables below show a three-year analysis of the actuarial value of assets as a percentage of the actuarial accrued liability and the unfunded actuarial accrued liability as a percentage of the annual covered payroll as of June 30:

Funded Status of Miscellaneous Plan

Entry Age Normal Actuarial Unfunded/ Annual Valuation Accrued Value (Overfunded) Funded Covered UAAL as a Date Liability of Assets Liability Ratio Payroll % of Payroll 6/30/07 $ 858,405,731 $ 796,726,808 $ 61,678,923 92.8% $ 208,760,671 29.5% 6/30/08 936,249,365 862,966,236 73,283,129 92.2% 235,274,627 31.1% 6/30/09 1,033,505,576 918,422,057 115,083,519 88.9% 255,212,291 45.1%

Funded Status of Safety Plan

Entry Age Normal Actuarial Unfunded/ Annual Valuation Accrued Value (Overfunded) Funded Covered UAAL as a Date Liability of Assets Liability Ratio Payroll % of Payroll 6/30/07 $ 322,496,295 $ 252,069,253 $ 70,427,042 78.2% $ 39,460,056 178.5% 6/30/08 363,113,495 275,250,058 87,863,437 75.8% 45,713,049 192.2% 6/30/09 395,267,914 293,618,315 101,649,599 74.3% 49,244,300 206.4%

COUNTY OF MONTEREY

Required Supplementary Information For the Fiscal Year Ended June 30, 2010

92

COUNTY OF MONTEREY RETIREE HEALTHCARE PLAN SCHEDULE OF FUNDING PROGRESS

Funded Status of Miscellaneous Plan

Unfunded Actuarial Actuarial Actuarial Actuarial Annual Valuation Value of Accrued Accrued Funded Covered UAAL as a Date Assets Liability Liability Ratio Payroll % of Payroll 6/30/07 $ -- $ 28,297,000 $ 28,297,000 0% $ 256,156,000 11.0% 6/30/09 150,000 23,292,000 23,142,000 0.6% 293,876,000 7.9%

93

SUPPLEMENTARY INFORMATION

94


95

NONMAJOR GOVERNMENTAL FUNDS

96


COUNTY OF MONTEREY

Combining Balance SheetNonmajor Governmental Funds

June 30, 2010

Special Debt CapitalRevenue Service Projects

Funds Funds Funds TotalAssetsCash and investments:

Held in County Treasury 36,259,100$ 4,667,823$ 36,764,525$ 77,691,448$ Held with trustee -- 11,861,794 -- 11,861,794

Receivables 5,578,665 396,070 119,086 6,093,821Due from other funds -- -- 447,842 447,842Advances to other funds 60,295 -- -- 60,295Land held for resale and development -- -- 856,017 856,017Long-term receivables 4,852,693 -- 688,168 5,540,861

Total assets 46,750,753$ 16,925,687$ 38,875,638$ 102,552,078$

LiabilitiesVouchers and accounts payable 1,021,884$ 74,607$ 1,378,128$ 2,474,619$ Due to other funds 335,343 112,522 -- 447,865Accrued salaries and benefits 541,166 -- -- 541,166Accrued expenses 2,799 -- -- 2,799Deposits from others 95,081 -- 172,028 267,109Deferred revenues 7,392,417 193,979 592,856 8,179,252Advances from other funds -- -- 210,295 210,295

Total liabilities 9,388,690 381,108 2,353,307 12,123,105

Fund balancesReserved for:

Encumbrances 3,549,592 -- 3,035,723 6,585,315Unavailable assets 60,295 -- 1,426,731 1,487,026Debt service -- 15,893,401 -- 15,893,401

Unreserved:Designated, reported in:

Special revenue funds 10,679,240 -- -- 10,679,240Undesignated reported in:

Special revenue funds 23,072,936 -- -- 23,072,936Capital projects funds -- -- 32,059,877 32,059,877Debt service funds -- 651,178 -- 651,178

Total fund balances 37,362,063 16,544,579 36,522,331 90,428,973

Total liabilities and fund balances 46,750,753$ 16,925,687$ 38,875,638$ 102,552,078$

97

COUNTY OF MONTEREY

Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental Funds


Special Debt CapitalRevenue Service Projects

Funds Funds Funds TotalRevenues:

Taxes 8,008,471$ 5,971,254$ 18,032$ 13,997,757$ Licenses, permits and franchises 77,385 -- -- 77,385Fines, forfeitures and penalties 972,395 1,344,836 -- 2,317,231Revenue from use of money and property 820,631 688,286 476,340 1,985,257Aid from other governmental agencies 15,507,678 39,096 94,065 15,640,839Charges for services 17,699,196 1,858,060 735,726 20,292,982Other revenue 562,586 -- 54,770 617,356

Total revenues 43,648,342 9,901,532 1,378,933 54,928,807


General government 1,243,502 217,926 3,117,877 4,579,305Public ways and facilities 17,989,946 1,500 -- 17,991,446Health and sanitation 3,634,773 -- -- 3,634,773Public assistance 14,728,470 -- -- 14,728,470Education 7,175,649 -- -- 7,175,649Recreation and cultural services 2,852,539 -- -- 2,852,539

Debt service:Principal 357,247 4,562,475 -- 4,919,722Interest and debt service costs 13,428 8,706,139 -- 8,719,567

Capital outlay -- -- 18,164,611 18,164,611


Excess (deficiency) of revenues over (under) expenditures (4,347,212) (3,586,508) (19,903,555) (27,837,275)

Other financing sources (uses):Inception of leases 61,476 -- -- 61,476Transfers in 7,590,479 18,578,755 27,048,797 53,218,031Transfers out (10,133,612) (18,674,563) (8,952,246) (37,760,421)

Total other financing sources (uses) (2,481,657) (95,808) 18,096,551 15,519,086

Extraordinary Item:Supplemental ERAF payment -- -- (2,170,500) (2,170,500)

Net change in fund balances (6,828,869) (3,682,316) (3,977,504) (14,488,689)

Fund balances, beginning of year 44,190,932 20,226,895 40,499,835 104,917,662

Fund balances, end of year 37,362,063$ 16,544,579$ 36,522,331$ 90,428,973$

98

99

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes.

100

SPECIAL REVENUE FUNDS

County Library – Established as a special taxing authority under the County Library Law of 1911 and, as such, is funded primarily through its own share of property tax to provide library services to residents of Monterey County.

In-Home Support Services – Program to provide services to aged, blind and disabled persons who are unable to remain in their homes without assistance.

Fish and Game Propagation – Administration of the County’s Fish and Game Commission, which consists of fifteen members, three from each supervisorial district to oversee allocation of fish and game fine monies.

Office of Employment Training – Receives federal funds for the design, implementation and oversight of youth and adult employment training services.

Community Services – Administration of the Community Services Block Grant for provision of specified programs to advance and advocate for the low-income population.

Inclusionary Housing – To facilitate the development of lower income housing throughout Monterey County through either direct grants or low interest rate loans.

Disaster Assistance – To help minimize the loss of life and property damage throughout the County resulting from the potential impact of any natural, technological or human-conflict related disasters.

Productivity Investment – Established by the Board of Supervisors in February 1996 with $1.1 million allocated from Public Employee Retirement surplus funds to foster innovation and to provide a source of funding for implementation of cost-effective departmental and formal employee organization projects.

Lakes Resort Parks – This fund consists of Lake San Antonio, North and South Shore, and Lake Nacimiento which offers to the public camping, fishing, hiking, equestrian trails, swimming, picnicking, boating and water skiing plus special events are provided. Costs are funded by user fees and, if necessary, by County contribution.

Natural Disaster Assistance – Finances the County General Fund expenditures for March 1995 and Winter Storm of 1997 and reflects the anticipated federal and State reimbursements for nonpersonnel related emergency services.

Emergency Medical Services – Established at the beginning of 1989 to provide for the collection and distribution of fine proceeds authorized by the California State Legislature’s adoption of Senate Bill 612.

Fort Ord Reuse – Implementation of the Fort Ord Redevelopment Project Area A28.

Nacimiento Hydroelectric Operations – Responsible for the management of Nacimiento hydroelectric operations in Monterey County.

Other Water Resources Agencies – Responsible for the management of groundwater resources and flood control protection in Monterey County.

County Service Areas – Provide a variety of services to the unincorporated developments within the County including storm drain and surface water disposal, street and sidewalk maintenance, street lighting, wastewater reclamation and open space maintenance.

Sanitation Districts – Administers and maintains four sanitation districts, operating costs are funded with user fees and property taxes.

Redevelopment Agency Set Aside Fund – Includes the set aside fund of the Redevelopment Agency of the County of Monterey that accounts for tax increment revenues set aside for low to moderate income housing projects.

COUNTY OF MONTEREY

Combining Balance SheetNonmajor Special Revenue Funds

June 30, 2010

In-Home Fish and Office ofCounty Support Game EmploymentLibrary Service Propagation Training

AssetsCash and investments:

Held in County Treasury 2,141,955$ --$ 18,837$ 165,667$ Receivables 413,946 124,480 -- 263,511Advances to other funds -- -- -- -- Long-term receivables -- -- -- --

Total assets 2,555,901$ 124,480$ 18,837$ 429,178$

Liabilities and fund balancesLiabilities:

Vouchers and accounts payable 89,916$ 221$ 2,000$ 12,585$ Due to other funds -- 5,761 -- -- Accrued salaries and benefits 111,800 8,923 -- 242,532Accrued expenses 1,578 -- -- 25Deposits from others -- 398 -- -- Deferred revenues 215,490 -- -- --

Total liabilities 418,784 15,303 2,000 255,142

Fund balances:Reserved for encumbrances 32,435 -- -- -- Reserved for unavailable assets -- -- -- -- Unreserved, designated -- -- -- -- Unreserved, undesignated 2,104,682 109,177 16,837 174,036

Total fund balances 2,137,117 109,177 16,837 174,036

Total liabilities and fund balances 2,555,901$ 124,480$ 18,837$ 429,178$

continued

101

COUNTY OF MONTEREY

Combining Balance Sheet (continued)Nonmajor Special Revenue Funds

June 30, 2010

Community Inclusionary Disaster ProductivityServices Housing Assistance Investment


Held in County Treasury --$ 430,481$ 258,355$ 878,144$ Receivables 464,813 -- -- -- Advances to other funds -- -- -- -- Long-term receivables -- 656,327 -- --

Total assets 464,813$ 1,086,808$ 258,355$ 878,144$


Vouchers and accounts payable 122,494$ 10,927$ --$ --$ Due to other funds 169,418 -- -- -- Accrued salaries and benefits 4,924 -- -- -- Accrued expenses -- -- -- -- Deposits from others -- -- -- -- Deferred revenues -- 656,327 -- --

Total liabilities 296,836 667,254 -- --

Fund balances:Reserved for encumbrances -- -- -- -- Reserved for unavailable assets -- -- -- -- Unreserved, designated 9,706 -- -- -- Unreserved, undesignated 158,271 419,554 258,355 878,144

Total fund balances 167,977 419,554 258,355 878,144

Total liabilities and fund balances 464,813$ 1,086,808$ 258,355$ 878,144$

continued

102

COUNTY OF MONTEREY


June 30, 2010

Lake Natural EmergencyResort Disaster Medical Fort OrdParks Assistance Services Reuse


Held in County Treasury --$ 1,106,473$ 48,857$ 69,986$ Receivables 7,602 -- -- -- Advances to other funds -- -- -- -- Long-term receivables -- -- -- --

Total assets 7,602$ 1,106,473$ 48,857$ 69,986$


Vouchers and accounts payable 48,061$ --$ --$ 14,184$ Due to other funds 160,164 -- -- -- Accrued salaries and benefits 28,894 -- -- -- Accrued expenses 528 -- -- -- Deposits from others -- -- -- 72,225Deferred revenues 2 1,106,473 -- --

Total liabilities 237,649 1,106,473 -- 86,409

Fund balances:Reserved for encumbrances 6,975 -- -- -- Reserved for unavailable assets -- -- -- -- Unreserved, designated -- -- -- -- Unreserved, undesignated (237,022) -- 48,857 (16,423)

Total fund balances (230,047) -- 48,857 (16,423)

Total liabilities and fund balances 7,602$ 1,106,473$ 48,857$ 69,986$

continued

103

COUNTY OF MONTEREY


June 30, 2010

Agencies Under Boardof Supervisors

Nacimiento Other Water CountyHydroelectric Resources Service Sanitation RDA

Operations Agencies Areas Districts Set-AsideAssetsCash and investments:

Held in County Treasury 483,256$ 13,494,642$ 9,457,829$ 1,810,553$ 5,894,065$ Receivables -- 3,543,454 136,790 115,639 508,430Advances to other funds -- -- -- -- 60,295Long-term receivables -- -- -- -- 4,196,366

Total assets 483,256$ 17,038,096$ 9,594,619$ 1,926,192$ 10,659,156$


Vouchers and accounts payable 7,208$ 623,950$ 16,726$ 59,542$ 14,070$ Due to other funds -- -- -- -- -- Accrued salaries and benefits -- 144,093 -- -- -- Accrued expenses -- 668 -- -- -- Deposits from others -- -- (142) 22,600 -- Deferred revenues -- 560,788 89,368 59,173 4,704,796

Total liabilities 7,208 1,329,499 105,952 141,315 4,718,866

Fund balances:Reserved for encumbrances 25,122 955,516 -- 320,722 2,208,822Reserved for unavailable assets -- -- -- -- 60,295Unreserved, designated -- 5,939,867 3,994,943 734,724 -- Unreserved, undesignated 450,926 8,813,214 5,493,724 729,431 3,671,173

Total fund balances 476,048 15,708,597 9,488,667 1,784,877 5,940,290

Total liabilities and fund balances 483,256$ 17,038,096$ 9,594,619$ 1,926,192$ 10,659,156$

continued

104

COUNTY OF MONTEREY


June 30, 2010

TotalsAssetsCash and investments:

Held in County Treasury 36,259,100$ Receivables 5,578,665Advances to other funds 60,295Long-term receivables 4,852,693

Total assets 46,750,753$


Vouchers and accounts payable 1,021,884$ Due to other funds 335,343Accrued salaries and benefits 541,166Accrued expenses 2,799Deposits from others 95,081Deferred revenues 7,392,417

Total liabilities 9,388,690

Fund balances:Reserved for encumbrances 3,549,592Reserved for unavailable assets 60,295Unreserved, designated 10,679,240Unreserved, undesignated 23,072,936

Total fund balances 37,362,063

Total liabilities and fund balances 46,750,753$

105

COUNTY OF MONTEREY

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended June 30, 2010

In-Home Fish and Office ofCounty Support Game EmploymentLibrary Service Propagation Training

Revenues:Taxes 6,396,674$ --$ --$ --$ Licenses, permits and franchises -- -- -- -- Fines, forfeitures and penalties -- -- 12,501 -- Revenue from use of money and property 25,164 1,449 219 -- Aid from other governmental agencies 167,046 480,150 -- 13,021,239Charges for services 140,437 -- -- 8,882Other revenue 297,447 -- -- 7,214

Total revenues 7,026,768 481,599 12,720 13,037,335


General government -- -- -- -- Public ways and facilities -- -- -- -- Health and sanitation -- -- -- -- Public assistance -- 540,557 -- 13,058,296Education 7,175,649 -- -- -- Recreation and cultural services -- -- 21,809 --

Debt service:Principal -- -- -- -- Interest -- -- -- --

Total expenditures 7,175,649 540,557 21,809 13,058,296

Excess (deficiency) of revenues over (under) expenditures (148,881) (58,958) (9,089) (20,961)

Other financing sources (uses):Inception of leases -- -- -- -- Transfers in 179,621 85,392 10,000 20,961Transfers out -- -- -- --

Total other financing sources (uses) 179,621 85,392 10,000 20,961

Net change in fund balances 30,740 26,434 911 --

Fund balances, beginning of year 2,106,377 82,743 15,926 174,036

Fund balances, end of year 2,137,117$ 109,177$ 16,837$ 174,036$

continued

106

COUNTY OF MONTEREY

Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued)Nonmajor Special Revenue FundsFor the Year Ended June 30, 2010

Community Inclusionary Disaster ProductivityServices Housing Assistance Investment

Revenues:Taxes --$ --$ --$ --$ Licenses, permits and franchises -- 54,250 -- -- Fines, forfeitures and penalties -- -- -- -- Revenue from use of money and property 1,138 18,054 -- 11,680Aid from other governmental agencies 1,093,191 6,846 -- -- Charges for services -- 2,000 -- -- Other revenue -- 52,107 -- --

Total revenues 1,094,329 133,257 -- 11,680


General government -- 249,227 -- -- Public ways and facilities -- -- -- -- Health and sanitation -- -- -- -- Public assistance 1,129,617 -- -- -- Education -- -- -- -- Recreation and cultural services -- -- -- --


Total expenditures 1,129,617 249,227 -- --

Excess (deficiency) of revenues over (under) expenditures (35,288) (115,970) -- 11,680

Other financing sources (uses):Inception of leases -- -- -- -- Transfers in 780 -- -- -- Transfers out -- (7,350) -- --

Total other financing sources (uses) 780 (7,350) -- --

Net change in fund balances (34,508) (123,320) -- 11,680

Fund balances, beginning of year 202,485 542,874 258,355 866,464

Fund balances, end of year 167,977$ 419,554$ 258,355$ 878,144$

continued

107

COUNTY OF MONTEREY


Lake Natural EmergencyResort Disaster Medical Fort OrdParks Assistance Services Reuse

Revenues:Taxes --$ --$ --$ --$ Licenses, permits and franchises -- -- -- -- Fines, forfeitures and penalties -- -- 959,894 -- Revenue from use of money and property 371,719 -- 5,224 1,758Aid from other governmental agencies -- -- -- -- Charges for services 847,649 -- -- -- Other revenue 272 -- -- (103,311)

Total revenues 1,219,640 -- 965,118 (101,553)


General government -- -- -- 42,003Public ways and facilities -- -- -- -- Health and sanitation -- -- 1,100,919 -- Public assistance -- -- -- -- Education -- -- -- -- Recreation and cultural services 2,830,730 -- -- --


Total expenditures 2,830,730 -- 1,100,919 42,003

Excess (deficiency) of revenues over (under) expenditures (1,611,090) -- (135,801) (143,556)

Other financing sources (uses):Inception of leases -- -- -- -- Transfers in 791,240 -- -- 42,000Transfers out -- -- -- --

Total other financing sources (uses) 791,240 -- -- 42,000

Net change in fund balances (819,850) -- (135,801) (101,556)

Fund balances, beginning of year 589,803 -- 184,658 85,133

Fund balances, end of year (230,047)$ --$ 48,857$ (16,423)$

continued

108

COUNTY OF MONTEREY


Agencies Under Boardof Supervisors

Nacimiento Other Water CountyHydroelectric Resources Service Sanitation RDA

Operations Agencies Areas Districts Set-AsideRevenues:

Taxes --$ --$ 1,611,797$ --$ --$ Licenses, permits and franchises -- 23,135 -- -- -- Fines, forfeitures and penalties -- -- -- -- -- Revenue from use of money and property 6,004 161,309 89,271 48,877 78,765Aid from other governmental agencies -- 735,674 2,331 1,201 -- Charges for services 55,000 14,609,333 766,444 1,239,451 30,000Other revenue -- 200,010 -- 28,225 80,622

Total revenues 61,004 15,729,461 2,469,843 1,317,754 189,387


General government -- -- -- -- 952,272Public ways and facilities 642,096 15,678,674 413,027 1,256,149 -- Health and sanitation -- -- 1,222,818 1,311,036 -- Public assistance -- -- -- -- -- Education -- -- -- -- -- Recreation and cultural services -- -- -- -- --

Debt service:Principal -- -- -- -- 357,247Interest -- -- -- -- 13,428

Total expenditures 642,096 15,678,674 1,635,845 2,567,185 1,322,947

Excess (deficiency) of revenues over (under) expenditures (581,092) 50,787 833,998 (1,249,431) (1,133,560)

Other financing sources (uses):Inception of leases -- 61,476 -- -- -- Transfers in -- 3,195,900 7,350 1,851,000 1,406,235Transfers out -- (10,020,337) -- (105,925) --

Total other financing sources (uses) -- (6,762,961) 7,350 1,745,075 1,406,235

Net change in fund balances (581,092) (6,712,174) 841,348 495,644 272,675

Fund balances, beginning of year 1,057,140 22,420,771 8,647,319 1,289,233 5,667,615

Fund balances, end of year 476,048$ 15,708,597$ 9,488,667$ 1,784,877$ 5,940,290$

continued

109

COUNTY OF MONTEREY


TotalsRevenues:

Taxes 8,008,471$ Licenses, permits and franchises 77,385Fines, forfeitures and penalties 972,395Revenue from use of money and property 820,631Aid from other governmental agencies 15,507,678Charges for services 17,699,196Other revenue 562,586

Total revenues 43,648,342


General government 1,243,502Public ways and facilities 17,989,946Health and sanitation 3,634,773Public assistance 14,728,470Education 7,175,649Recreation and cultural services 2,852,539

Debt service:Principal 357,247Interest 13,428

Total expenditures 47,995,554

Excess (deficiency) of revenues over (under) expenditures (4,347,212)

Other financing sources (uses):Inception of leases 61,476Transfers in 7,590,479Transfers out (10,133,612)

Total other financing sources (uses) (2,481,657)

Net change in fund balances (6,828,869)

Fund balances, beginning of year 44,190,932

Fund balances, end of year 37,362,063$

110

COUNTY OF MONTEREY

Budgetary Comparison ScheduleCounty Library Fund




Revenues:Taxes 6,652,481$ 6,652,481$ 6,396,674$ (255,807)$ Revenue from use of money and property 16,975 16,975 25,164 8,189Aid from other governmental agencies 155,665 155,665 167,046 11,381Charges for services 143,100 143,100 140,437 (2,663)Other revenue 205,671 205,671 297,447 91,776

Total revenues 7,173,892 7,173,892 7,026,768 (147,124)


Education 7,601,232 7,601,232 7,138,019 463,213Total expenditures 7,601,232 7,601,232 7,138,019 463,213

Excess (deficiency) of revenues over (under) expenditures (427,340) (427,340) (111,251) 316,089

Other financing sources (uses):Transfers in 179,622 179,622 179,621 (1)

Total other financing sources (uses) 179,622 179,622 179,621 (1)

111

g ( ) , , , ( )

Net change in budgetary fund balances (247,718) (247,718) 68,370 316,088


Budgetary fund balances, ending 1,858,659$ 1,858,659$ 2,174,747$ 316,088$

111

COUNTY OF MONTEREY

Budgetary Comparison ScheduleIn-Home Support Services




Revenues:Revenue from use of money and property --$ --$ 1,449$ 1,449$ Aid from other governmental agencies 563,868 646,610 480,150 (166,460)

Total revenues 563,868 646,610 481,599 (165,011)


Public assistance 684,939 767,681 539,029 228,652Total expenditures 684,939 767,681 539,029 228,652


Other financing sources (uses):Transfers in 121,071 121,071 85,392 (35,679)

Total other financing sources (uses) 121,071 121,071 85,392 (35,679)

Net change in budgetary fund balances -- -- 27,962 27,962

Budgetary fund balances, beginning 82,743 82,743 82,743 --

Budgetary fund balances, ending 82,743$ 82,743$ 110,705$ 27,962$

112

COUNTY OF MONTEREY

Budgetary Comparison ScheduleFish and Game Propagation




Revenues:Fines, forfeitures and penalties 2,000$ 2,000$ 12,501$ 10,501$ Revenue from use of money and property 700 700 219 (481)

Total revenues 2,700 2,700 12,720 10,020


Recreation and cultural services 22,261 22,261 21,809 452Total expenditures 22,261 22,261 21,809 452


Other financing sources (uses):Transfers in 20,786 20,786 10,000 (10,786)

Total other financing sources (uses) 20,786 20,786 10,000 (10,786)

Net change in budgetary fund balances 1,225 1,225 911 (314)


Budgetary fund balances, ending 17,151$ 17,151$ 16,837$ (314)$

113

COUNTY OF MONTEREY

Budgetary Comparison ScheduleOffice of Employment Training




Revenues:Aid from other governmental agencies 8,575,951$ 14,716,345$ 13,021,239$ (1,695,106)$ Charges for services -- -- 8,882 8,882Other revenue -- -- 7,214 7,214

Total revenues 8,575,951 14,716,345 13,037,335 (1,679,010)


Public assistance 8,596,912 14,737,306 13,058,296 1,679,010Total expenditures 8,596,912 14,737,306 13,058,296 1,679,010

Excess (deficiency) of revenues over (under) expenditures (20,961) (20,961) (20,961) --

Other financing sources (uses):Transfers in 20,961 20,961 20,961 --

Total other financing sources (uses) 20,961 20,961 20,961 --

Net change in budgetary fund balances -- -- -- --


Budgetary fund balances, ending 174,036$ 174,036$ 174,036$ --$

114

COUNTY OF MONTEREY

Budgetary Comparison ScheduleCommunity Services




Revenues:Revenue from use of money and property 3,000$ 3,000$ 1,138$ (1,862)$ Aid from other governmental agencies 1,163,205 1,500,425 1,093,191 (407,234)

Total revenues 1,166,205 1,503,425 1,094,329 (409,096)


Public assistance 1,166,985 1,504,205 1,129,617 374,588Total expenditures 1,166,985 1,504,205 1,129,617 374,588

Excess (deficiency) of revenues over (under) expenditures (780) (780) (35,288) (34,508)

Other financing sources (uses):Transfers in 780 780 780 --

Total other financing sources (uses) 780 780 780 --

Net change in budgetary fund balances -- -- (34,508) (34,508)


Budgetary fund balances, ending 202,485$ 202,485$ 167,977$ (34,508)$

115

COUNTY OF MONTEREY

Budgetary Comparison ScheduleInclusionary Housing




Revenues:Licenses, permits and franchises 50,000$ 50,000$ 54,250$ 4,250$ Revenue from use of money and property 7,000 7,000 18,054 11,054Aid from other governmental agencies -- -- 6,846 6,846Charges for services -- -- 2,000 2,000Other revenue 35,125 35,125 52,107 16,982

Total revenues 92,125 92,125 133,257 41,132


General government 162,322 632,326 99,573 532,753Total expenditures 162,322 632,326 99,573 532,753

Excess (deficiency) of revenues over (under) expenditures (70,197) (540,201) 33,684 573,885

Other financing sources (uses):Transfers out -- -- (7,350) (7,350)

Total other financing sources (uses) -- -- (7,350) (7,350)




116

COUNTY OF MONTEREY

Budgetary Comparison ScheduleDisaster Assistance





Public safety and protection 258,355$ 258,355$ --$ 258,355$ Total expenditures 258,355 258,355 -- 258,355

Net change in budgetary fund balances (258,355) (258,355) -- 258,355


Budgetary fund balances, ending --$ --$ 258,355$ 258,355$

117

COUNTY OF MONTEREY

Budgetary Comparison ScheduleProductivity Investment




Revenues:Revenue from use of money and property 10,000$ 10,000$ 11,680$ 1,680$

Total revenues 10,000 10,000 11,680 1,680

Excess (deficiency) of revenues over (under) expenditures 10,000 10,000 11,680 1,680

Other financing sources (uses):Transfers out (912,197) (912,197) -- 912,197

Total other financing sources (uses) (912,197) (912,197) -- 912,197



Budgetary fund balances, ending (35,733)$ (35,733)$ 878,144$ 913,877$

118

COUNTY OF MONTEREY

Budgetary Comparison ScheduleLakes Resort Parks




Revenues:Revenue from use of money and property 1,150,000$ 1,150,000$ 371,719$ (778,281)$ Charges for services 900,000 900,000 847,649 (52,351)Other revenue -- -- 272 272

Total revenues 2,050,000 2,050,000 1,219,640 (830,360)


Recreation and cultural services 2,754,366 2,754,366 2,744,459 9,907Total expenditures 2,754,366 2,754,366 2,744,459 9,907

Excess (deficiency) of revenues over (under) expenditures (704,366) (704,366) (1,524,819) (820,453)

Other financing sources (uses):Transfers in -- -- 791,240 791,240

Total other financing sources (uses) -- -- 791,240 791,240

Net change in budgetary fund balances (704,366) (704,366) (733,579) (29,213)


Budgetary fund balances, ending (114,563)$ (114,563)$ (143,776)$ (29,213)$

119

COUNTY OF MONTEREY

Budgetary Comparison ScheduleEmergency Medical Services




Revenues:Fines, forfeitures and penalties 950,000$ 950,000$ 959,894$ 9,894$ Revenue from use of money and property 20,000 20,000 5,224 (14,776)Aid from other governmental agencies 288,806 -- -- --

Total revenues 1,258,806 970,000 965,118 (4,882)


Health and sanitation 1,184,160 1,184,160 1,100,919 83,241Total expenditures 1,184,160 1,184,160 1,100,919 83,241

Net change in budgetary fund balances 74,646 (214,160) (135,801) 78,359


Budgetary fund balances, ending 259,304$ (29,502)$ 48,857$ 78,359$

120

COUNTY OF MONTEREY

Budgetary Comparison ScheduleFort Ord Reuse




Revenues:Revenue from use of money and property 1,500$ 1,500$ 1,758$ 258$ Other revenue -- -- (103,311) (103,311)

Total revenues 1,500 1,500 (101,553) (103,053)


General government 162,832 162,832 (51,890) 214,722Total expenditures 162,832 162,832 (51,890) 214,722


Other financing sources (uses):Transfers in 42,000 42,000 42,000 --

Total other financing sources (uses) 42,000 42,000 42,000 --

Net change in budgetary fund balances (119,332) (119,332) (7,663) 111,669


Budgetary fund balances, ending (34,199)$ (34,199)$ 77,470$ 111,669$

121

COUNTY OF MONTEREY

Budgetary Comparison ScheduleNacimiento Hydroelectric Operations




Revenues:Revenue from use of money and property 10,000$ 10,000$ 6,004$ (3,996)$ Charges for services 55,000 55,000 55,000 --

Total revenues 65,000 65,000 61,004 (3,996)


Public ways and facilities 930,762 1,085,244 635,600 449,644Total expenditures 930,762 1,085,244 635,600 449,644

Net change in budgetary fund balances (865,762) (1,020,244) (574,596) 445,648



122

COUNTY OF MONTEREY

Budgetary Comparison ScheduleWater Resources Agency




Revenues:Licenses, permits and franchises 29,000$ 29,000$ 23,135$ (5,865)$ Revenue from use of money and property 183,050 183,050 161,309 (21,741)Aid from other governmental agencies 2,757,431 3,125,431 735,674 (2,389,757)Charges for services 15,219,715 15,019,715 14,609,333 (410,382)Other revenue 1,116,000 1,116,000 200,010 (915,990)

Total revenues 19,305,196 19,473,196 15,729,461 (3,743,735)


Public ways and facilities 24,736,003 26,576,460 11,097,840 15,478,620Total expenditures 24,736,003 26,576,460 11,097,840 15,478,620

Excess (deficiency) of revenues over (under) expenditures (5,430,807) (7,103,264) 4,631,621 11,734,885

Other financing sources (uses):Transfers in 3,821,676 3,821,676 3,195,900 (625,776)Transfers out (3 586 589) (3 586 589) (10 020 337) (6 433 748)

123

Transfers out (3,586,589) (3,586,589) (10,020,337) (6,433,748)Total other financing sources (uses) 235,087 235,087 (6,824,437) (7,059,524)



Budgetary fund balances, ending 17,225,051$ 15,552,594$ 20,227,955$ 4,675,361$

123

COUNTY OF MONTEREY

Budgetary Comparison ScheduleCounty Service Areas




Revenues:Taxes 1,550,000$ 1,550,000$ 1,611,797$ 61,797$ Revenue from use of money and property 123,440 123,440 89,271 (34,169)Aid from other governmental agencies 1,065 1,065 2,331 1,266Charges for services 751,720 751,720 766,444 14,724

Total revenues 2,426,225 2,426,225 2,469,843 43,618


Public ways and facilities 2,389,944 2,409,944 392,187 2,017,757Health and sanitation 1,680,112 1,680,112 1,222,818 457,294


Excess (deficiency) of revenues over (under) expenditures (1,643,831) (1,663,831) 854,838 2,518,669



Net change in budgetary fund balances (1,643,831) (1,663,831) 862,188 2,526,019

Budgetary fund balances, beginning restated 8,647,319 8,647,319 8,647,319 --


124

COUNTY OF MONTEREY

Budgetary Comparison ScheduleSanitation Districts

For the Year Ended June 30, 2010Variance withFinal Budget


Revenues:Revenue from use of money and property 52,371$ 52,371$ 48,877$ (3,494)$ Aid from other governmental agencies 2,388,550 2,388,550 1,201 (2,387,349)Charges for services 1,166,700 1,166,700 1,239,451 72,751Other revenues -- -- 28,225 28,225

Total revenues 3,607,621 3,607,621 1,317,754 (2,289,867)


Public ways and facilities 3,044,260 3,671,260 1,475,962 2,195,298Health and sanitation 1,529,429 1,529,429 1,311,036 218,393


Excess (deficiency) of revenues over (under) expenditures (966,068) (1,593,068) (1,469,244) 123,824

Other financing sources (uses):Transfer in 1,249,000 1,876,000 1,851,000 (25,000)Transfers out (1,105,925) (1,105,925) (105,925) 1,000,000

Total other financing sources (uses) 143,075 770,075 1,745,075 975,000

Net change in budgetary fund balances (822,993) (822,993) 275,831 1,098,824



125

COUNTY OF MONTEREY

Budgetary Comparison ScheduleRedevelopment Agency Set-Aside Fund




Revenues:Revenue from use of money and property 85,447$ 85,447$ 78,765$ (6,682)$ Other revenue -- -- 80,622 80,622

Total revenues 85,447 85,447 159,387 73,940


General government 3,342,069 7,026,400 3,098,434 3,927,966Debt service:

Principal -- -- 357,247 (357,247)Interest -- -- 13,428 (13,428)


Excess (deficiency) of revenues over (under) expenditures (3,256,622) (6,940,953) (3,309,722) 3,631,231

Other financing sources (uses):Transfers in 1,308,279 1,308,279 1,406,235 97,956



Budgetary fund balances, beginning, restated 5,667,615 5,667,615 5,667,615 --

Budgetary fund balances, ending 3,719,272$ 34,941$ 3,764,128$ 3,729,187$

126

127

DEBT SERVICE FUNDS

Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. The County debt service funds provide for the repayment of debt, other than those financed by proprietary funds, for certificates of participation, revenue bonds and short-term borrowing.

128

DEBT SERVICE FUNDS

Debt Service County Fund – Created to assure the County meets all the debt service obligations in connection with the County’s adopted financing policies and State statutes so that the County’s credit ratings continue at the current positive levels. The debt is managed by the Auditor-Controller’s Office in coordination with the Chief Administrative Office. Debt Service Redevelopment Agency (RDA) Fund – Created to account for the debt incurred by the Redevelopment Agency including payments to agencies and the housing set-aside. The debt is managed by the Auditor-Controller’s Office and the Redevelopment & Housing Office of the Resource Management Agency. County Financing Authority – Established to support the debt service activities funding the County’s portion of the construction of the Salinas Valley Water Project. The fund is managed by the Auditor-Controller’s Office and the Water Resources Agency. Public Improvement Corporation – The Corporation assists the County in acquiring, purchasing, constructing, improving and financing real property, facilities and equipment needed for County operations. With County assistance, the Corporation acts as a conduit between the County and bond holders. The Auditor-Controller’s office is the oversight agency for all funds provided by the Corporation for capital projects.

Debt Debt County PublicService Service Financing ImprovementCounty RDA Authority Corporation Total

AssetsCash and investments in County Treasury 4,489,770$ 78,185$ --$ 99,868$ 4,667,823$ Cash with fiscal agent -- -- 2,189,255 9,672,539 11,861,794Taxes receivable -- 396,070 -- -- 396,070

Total assets 4,489,770$ 474,255$ 2,189,255$ 9,772,407$ 16,925,687$


Vouchers and accounts payable --$ 74,607$ --$ --$ 74,607$ Due to other funds -- 112,522 -- -- 112,522Deferred revenues -- 193,979 -- -- 193,979

Total liabilities -- 381,108 -- -- 381,108

Fund balances:Reserved for debt service 3,931,739 -- 2,189,255 9,772,407 15,893,401Unreserved, undesignated 558,031 93,147 -- -- 651,178

Total fund balances 4,489,770 93,147 2,189,255 9,772,407 16,544,579

Total liabilities and fund balances 4,489,770$ 474,255$ 2,189,255$ 9,772,407$ 16,925,687$

COUNTY OF MONTEREY

Combining Balance SheetNonmajor Debt Service Funds

June 30, 2010

129

COUNTY OF MONTEREY

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Debt Service Funds


Debt Debt County PublicService Service Financing ImprovementGeneral RDA Authority Corporation Totals

Revenues:Taxes 6,193$ 5,965,061$ --$ --$ 5,971,254$ Fines, forfeitures and penalties -- -- -- 1,344,836 1,344,836Revenue from use of money and property 49,994 24,295 113,860 500,137 688,286Aid from other governmental agencies -- 39,096 -- -- 39,096Charges for services 1,858,060 -- -- -- 1,858,060

Total revenues 1,914,247 6,028,452 113,860 1,844,973 9,901,532

Expenditures:General government -- 217,926 -- -- 217,926Public ways and facilities -- -- 1,500 -- 1,500Debt service:

Principal 1,102,475 -- -- 3,460,000 4,562,475Interest and debt service costs 931,363 -- 1,597,913 6,176,863 8,706,139

Total expenditures 2,033,838 217,926 1,599,413 9,636,863 13,488,040

Excess (deficiency) of revenues over (under) expenditures (119,591) 5,810,526 (1,485,553) (7,791,890) (3,586,508)

Other financing sources (uses):

Transfers in 105,925 -- 908,533 17,564,297 18,578,755Transfers out (9,673,791) (5,854,536) (3,146,236) -- (18,674,563)

Total other financing sources (uses) (9,567,866) (5,854,536) (2,237,703) 17,564,297 (95,808)

Net change in fund balances (9,687,457) (44,010) (3,723,256) 9,772,407 (3,682,316)

Fund balances, beginning 14,177,227 137,157 5,912,511 -- 20,226,895

Fund balances, ending 4,489,770$ 93,147$ 2,189,255$ 9,772,407$ 16,544,579$

130

COUNTY OF MONTEREY

Budgetary Comparison ScheduleDebt Service - County




Revenues:Taxes --$ --$ 6,193$ 6,193$ Revenue from use of money and property 70,000 70,000 49,994 (20,006)Charges for services 1,650,000 1,850,000 1,858,060 8,060

Total revenues 1,720,000 1,920,000 1,914,247 (5,753)

Expenditures:Debt service:

Principal 1,052,304 1,052,304 1,102,475 (50,171)Interest and debt service costs 962,425 996,228 931,363 64,865

Total expenditures 2,014,729 2,048,532 2,033,838 14,694


Other financing sources (uses):

131

Other financing sources (uses):Transfers in -- -- 105,925 105,925Transfers out -- -- (9,673,791) (9,673,791)

Total other financing sources (uses) -- -- (9,567,866) (9,567,866)

Net change in budgetary fund balances (294,729) (128,532) (9,687,457) (9,558,925)


Budgetary fund balances, ending 13,882,498$ 14,048,695$ 4,489,770$ (9,558,925)$

131

COUNTY OF MONTEREY

Budgetary Comparison ScheduleDebt Service - RDA




Revenues:Taxes 5,137,985$ 7,147,985$ 5,965,061$ (1,182,924)$ Revenue from use of money and property 1,000 1,000 24,295 23,295Aid from other governmental agencies -- -- 39,096 39,096

Total revenues 5,138,985 7,148,985 6,028,452 (1,120,533)

Expenditures:General government -- -- 217,926 (217,926)

Total expenditures -- -- 217,926 (217,926)

Excess (deficiency) of revenues over (under) expenditures 5,138,985 7,148,985 5,810,526 (1,338,459)

Other financing sources (uses):Transfers out (5,138,985) (7,372,055) (5,854,536) 1,517,519

Total other financing sources (uses) (5,138,985) (7,372,055) (5,854,536) 1,517,519

Net change in budgetary fund balances -- (223,070) (44,010) 179,060


Budgetary fund balances, ending 137,157$ (85,913)$ 93,147$ 179,060$

132

COUNTY OF MONTEREY

Budgetary Comparison ScheduleCounty Financing Authority




Revenues:Revenue from use of money and property --$ --$ 113,860$ 113,860$

Total revenues -- -- 113,860 113,860

Expenditures:Public ways and facilities 1,500 1,500 1,500 -- Debt service:

Interest and debt service costs -- 1,597,913 1,597,913 -- Total expenditures 1,500 1,599,413 1,599,413 --

Excess (deficiency) of revenues over (under) expenditures (1,500) (1,599,413) (1,485,553) 113,860

Other financing sources (uses):Transfers in -- -- 908,533 908,533Transfers out (3,146,236) (3,146,236) (3,146,236) --

Total other financing sources (uses) (3,146,236) (3,146,236) (2,237,703) 908,533




133

COUNTY OF MONTEREY

Budgetary Comparison SchedulePublic Improvement CorporationFor the Year Ended June 30, 2010



Revenues:Revenue from use of money and property 238,330$ 238,330$ 500,137$ 261,807$ Fines, forfeitures and penalties 1,500,000 1,500,000 1,344,836 (155,164)

Total revenues 1,738,330 1,738,330 1,844,973 106,643

Expenditures:Debt service:

Principal 3,460,000 5,910,000 3,460,000 2,450,000Interest and debt service costs 6,178,145 9,260,470 6,176,863 3,083,607



Other financing sources (uses):Transfers in 7,899,815 7,899,815 17,564,297 9,664,482

Total other financing sources (uses) 7,899,815 7,899,815 17,564,297 9,664,482

Net change in budgetary fund balances -- (5,532,325) 9,772,407 15,304,732

Budgetary fund balances, beginning -- -- -- --

Budgetary fund balances, ending --$ (5,532,325)$ 9,772,407$ 15,304,732$

134

135

CAPITAL PROJECT FUNDS

Nonmajor Capital Project Funds

Capital project funds are used to account for financial resources to be used for implementation and construction of specific Board approved capital equipment or facilities in a timely and cost-effective manner. The following are the County’s nonmajor capital project funds, other than those financed by proprietary funds.

136

CAPITAL PROJECT FUNDS

Major Capital Project Fund

Facilities Master Plan Implementation – Established to account for capital projects undertaken with debt in order to adhere to reporting requirements and assure the County is on schedule with project implementation and completion. Current projects include the Courthouse Complete (north, east and west wings), the Government Center Parking Structure and the New Health Headquarters.

Nonmajor Capital Project Funds

Capital Projects Fund – Created to provide for capital improvements, replacement and construction of new County facilities. The fund is administered by the Architectural Services Division within the Resource Management Agency. Enterprise Resource Planning Fund – Established to account for the implementation of the County’s Enterprise Applications project, including the Financial Accounting, Budget Preparation and the Human Resources/Payroll Systems. The Auditor-Controller’s Office acts as the project manager of the fund. Facilities Maintenance Projects Fund – Provides for major maintenance including remodeling, improving, renovation, and upgrading of existing County facilities. The fund is administered by the Public Works Department within the Resource Management Agency. Water Resources Funds – Provides for construction of the Salinas River Diversion Facility portion and Nacimiento Spillway Modification portion of the Salinas Valley Water Project. NGEN Radio Project – Provides for the design/build project to make the radio system compliant with the Federal Communications Commission mandate. Redevelopment Capital Projects – Provides for the administration and implementation of the Castroville/Pajaro Redevelopment Plan adopted in 1986, Boronda Redevelopment Plan adopted in 1988, and Fort Ord Redevelopment Project Area.

COUNTY OF MONTEREY

Budgetary Comparison ScheduleFacility Master Plan




RevenuesRevenue from use of money and property 889,000$ 889,000$ 783,809$ (105,191)$

Total revenues 889,000 889,000 783,809 (105,191)

ExpendituresCapital outlay 31,351,679 31,351,679 6,449,356 24,902,323





137

COUNTY OF MONTEREY

Combining Balance SheetNonmajor Capital Projects Funds

June 30, 2010

Enterprise Facilities Other WaterCapital Resource Maintenance ResourcesProjects Planning Projects Agencies

AssetsCash and investments in County Treasury 15,154,349$ 1,697,878$ 3,411,501$ 2,722,887$ Receivables -- -- 24,158 -- Due from other funds 335,320 -- -- -- Land held for resale and development -- -- -- -- Long term receivable 570,714 -- -- --

Total assets 16,060,383$ 1,697,878$ 3,435,659$ 2,722,887$


Vouchers and accounts payable 134,053$ 640,525$ 105,278$ 427,262$ Deposits from others -- -- -- -- Deferred revenues 200,359 -- -- -- Advances payable -- -- -- --

Total liabilities 334,412 640,525 105,278 427,262

Fund balances:Reserved for:

Encumbrances 126,440 -- 486,496 2,374,682Unavailable assets 570,714 -- -- --

Unreserved 15,028,817 1,057,353 2,843,885 (79,057)

Total fund balances 15,725,971 1,057,353 3,330,381 2,295,625

Total liabilities and fund balances 16,060,383$ 1,697,878$ 3,435,659$ 2,722,887$

138

NGEN RedevelopmentRadio CapitalProject Projects Total

AssetsCash and investments

443,556$ 13,334,354$ 36,764,525$ in County Treasury-- 94,928 119,086 Receivables-- 112,522 447,842 Due from other funds-- 856,017 856,017 Land held for resale and development-- 117,454 688,168 Long term receivable

443,556$ 14,515,275$ 38,875,638$ Total assets


3,885$ 67,125$ 1,378,128$ Vouchers and accounts payable-- 172,028 172,028 Deposits from others-- 392,497 592,856 Deferred revenues-- 210,295 210,295 Advances payable

3,885 841,945 2,353,307 Total liabilities

Fund balances:Reserved for:

8,215 39,890 3,035,723 Encumbrances-- 856,017 1,426,731 Unavailable assets

431,456 12,777,423 32,059,877 Unreserved

439,671 13,673,330 36,522,331 Total fund balances

443,556$ 14,515,275$ 38,875,638$ Total liabilities and fund balances

139

COUNTY OF MONTEREY

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Capital Projects FundsFor the Year Ended June 30, 2010

Enterprise Facilities Other WaterCapital Resource Maintenance ResourcesProjects Planning Projects Agencies

Revenues:Taxes --$ --$ --$ --$ Revenue from use of

money and property 231,670 1,916 23,190 53,485Aid from other

governmental agencies -- -- 56,060 -- Charges for services -- -- -- -- Other revenue -- -- 755 --

Total revenues 231,670 1,916 80,005 53,485


General government -- -- -- -- Capital outlay 2,811,567 5,896,148 2,446,328 6,948,900


Excess (deficiency) of revenues over (under) expenditures (2,579,897) (5,894,232) (2,366,323) (6,895,415)

Other financing sources (uses):Transfers in 625,000 6,351,505 3,176,324 12,191,040Transfers out (5,952,246) -- -- (3,000,000)

Total other financing sources (uses) (5,327,246) 6,351,505 3,176,324 9,191,040

Extraordinary Item:Supplemental ERAF payment -- -- -- --

Net change in fund balances (7,907,143) 457,273 810,001 2,295,625

Fund balances, beginning 23,633,114 600,080 2,520,380 --

Fund balances, ending 15,725,971$ 1,057,353$ 3,330,381$ 2,295,625$

140

NGEN RedevelopmentRadio CapitalProject Projects Totals

Revenues:--$ 18,032$ 18,032$ Taxes

Revenue from use of 1,339 164,740 476,340 money and property

Aid from other-- 38,005 94,065 governmental agencies

294,578 441,148 735,726 Charges for services-- 54,015 54,770 Other revenue

295,917 715,940 1,378,933 Total revenues


-- 3,117,877 3,117,877 General government 61,668 -- 18,164,611 Capital outlay 61,668 3,117,877 21,282,488 Total expenditures

Excess (deficiency) of revenues 234,249 (2,401,937) (19,903,555) over (under) expenditures

Other financing sources (uses): 205,422 4,499,506 27,048,797 Transfers in

-- -- (8,952,246) Transfers outTotal other financing

205,422 4,499,506 18,096,551 sources (uses)

Extraordinary Item:-- (2,170,500) (2,170,500) Supplemental ERAF payment

439,671 (72,931) (3,977,504) Net change in fund balances

-- 13,746,261 40,499,835 Fund balances, beginning

439,671$ 13,673,330$ 36,522,331$ Fund balances, ending

141

COUNTY OF MONTEREY

Budgetary Comparison ScheduleCapital Projects




Revenues:Revenue from use of money and property 219,162$ 219,162$ 231,670$ 12,508$

Total revenues 219,162 219,162 231,670 12,508

Expenditures:Capital outlay 15,067,821 13,159,796 2,466,558 10,693,238



Other financing sources (uses):Transfers in -- -- 625,000 625,000Transfers out -- (4,320,329) (5,952,246) (1,631,917)

Total other financing sources (uses) -- (4,320,329) (5,327,246) (1,006,917)




142

COUNTY OF MONTEREY

Budgetary Comparison ScheduleEnterprise Resource Planning




Revenues:Revenue from use of money and property --$ --$ 1,916$ 1,916$

Total revenues -- -- 1,916 1,916

Expenditures:Capital outlay 5,469,334 6,301,505 5,491,781 809,724

Total expenditures 5,469,334 6,301,505 5,491,781 809,724

Excess (deficiency) of revenues over (under) expenditures (5,469,334) (6,301,505) (5,489,865) 811,640

Other financing sources (uses):Transfers in 5,469,334 6,101,505 6,351,505 250,000


Net change in budgetary fund balances -- (200,000) 861,640 1,061,640



143

COUNTY OF MONTEREY

Budgetary Comparison ScheduleFacilities Maintenance Projects




Revenues:Revenue from use of money and property 50,000$ 50,000$ 23,190$ (26,810)$ Aid from other governmental agencies -- -- 56,060 56,060Other revenue -- -- 755 755

Total revenues 50,000 50,000 80,005 30,005

Expenditures:Capital outlay 4,303,465 4,303,465 2,194,189 2,109,276



Other financing sources (uses):Transfers in 750,000 2,288,799 3,176,324 887,525

Total other financing sources (uses) 750,000 2,288,799 3,176,324 887,525

Net change in budgetary fund balances (3,503,465) (1,964,666) 1,062,140 3,026,806


Budgetary fund balances, ending (983,085)$ 555,714$ 3,582,520$ 3,026,806$

144

COUNTY OF MONTEREY

Budgetary Comparison ScheduleOther Water Resources AgenciesFor the Year Ended June 30, 2010



Revenues:Revenue from use of money and property --$ --$ 53,485$ 53,485$ Aid from other governmental agencies 559,375 559,375 -- (559,375)

Total revenues 559,375 559,375 53,485 (505,890)

Expenditures:Current:Capital outlay 8,269,296 10,787,082 9,323,582 1,463,500


Excess (deficiency) of revenues over (7,709,921) (10,227,707) (9,270,097) 957,610 (under) expenditures

Other financing sources (uses):Transfers in 8,560,000 8,806,714 12,191,040 3,384,326Transfers out (3,000,000) (3,000,000) (3,000,000) --

Total other financing sources (uses) 5,560,000 5,806,714 9,191,040 3,384,326

Net change in budgetary fund balances (2,149,921) (4,420,993) (79,057) 4,341,936


Budgetary fund balances, ending (2,149,921)$ (4,420,993)$ (79,057)$ 4,341,936$

145

COUNTY OF MONTEREY

Budgetary Comparison ScheduleNGEN Radio Project




Revenues:Revenue from use of money and property --$ --$ 1,339$ 1,339$ Charges for services -- 500,000 294,578 (205,422)

Total revenues -- 500,000 295,917 (204,083)

Expenditures:Capital outlay 267,426 267,426 69,883 197,543

Total expenditures 267,426 267,426 69,883 197,543

Excess (deficiency) of revenues over (267,426) 232,574 226,034 (6,540) (under) expenditures



Net change in budgetary fund balances (267,426) 232,574 431,456 198,882


Budgetary fund balances, ending (267,426)$ 232,574$ 431,456$ 198,882$

146

COUNTY OF MONTEREY

Budgetary Comparison ScheduleRedevelopment Capital Projects




Revenues:Taxes --$ --$ 18,032$ 18,032Revenue from use of money and property 104,300 104,300 164,740 60,440Aid from other governmental agencies 100,000 675,000 38,005 (636,995)Charges for services 104,935 144,935 441,148 296,213Other revenue -- -- 54,015 54,015

Total revenues 309,235 924,235 715,940 (208,295)


General government 14,091,179 17,513,736 2,373,568 15,140,168Debt service:

Principal 55,750 55,750 -- 55,750Interest 26,500 26,500 -- 26,500


Excess (deficiency) of revenues over (13,864,194) (16,671,751) (1,657,628) 15,014,123 (under) expenditures

Other financing sources (uses):Transfers in 3,896,496 3,896,496 4,499,506 603,010Transfers out (65,789) (65,789) -- 65,789


Net change in budgetary fund balances (10,033,487) (12,841,044) 2,841,878 15,682,922


Budgetary fund balances, ending 3,712,774$ 905,217$ 16,588,139$ 15,682,922$

147

148


149

INTERNAL SERVICE FUNDS

Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments, or agencies of the County, or to other governments on a cost-reimbursement basis. Financing requirements are based upon actuarial studies that provide several scenarios that estimate ultimate losses. The County has adopted policies to fund each of these funds at the 70% confidence level. Each participant department of the fund’s services contributes to the recovery of expenses based on the participant department’s loss history and exposure to risk. Both funds are managed by the Risk Management Division of the County Administrative Office.

150

INTERNAL SERVICE FUNDS

General Liability Fund – Created to provide for all liability judgments, settlements, and claims against the County, including claims that are not covered by the County’s excess insurance policy. Workers Compensation Fund – Created to provide for all workers compensation judgments, settlements, and claims against the County, including prevention expenses and the Return-to-Work program.

COUNTY OF MONTEREY

Combining Statement of Fund Net AssetsInternal Service Funds

June 30, 2010

General WorkersLiability Compensation Total

AssetsCurrent assets:

Cash and cash equivalents 7,265,106$ 37,669,868$ 44,934,974$ Prepaid expenses 122,573 -- 122,573

Total current assets 7,387,679 37,669,868 45,057,547

Noncurrent assets:Restricted assets:

Held by trustee 500,485 -- 500,485Capital assets:

Depreciable, net 5,051,358 -- 5,051,358Total noncurrent assets 5,551,843 -- 5,551,843

Total assets 12,939,522$ 37,669,868$ 50,609,390$

Liabilities and Net AssetsCurrent liabilities:

Accounts payable and deposits 33,673$ 355,639$ 389,312$ Accrued interest 54,583 -- 54,583Current portion of claims liability 2,134,427 9,685,529 11,819,956Current portion of bonds and notes payable 1,583,384 -- 1,583,384

Total current liabilities 3,806,067 10,041,168 13,847,235

Long-term liabilities:Claims liability 3,742,340 36,286,415 40,028,755Bonds and notes payable 15,254,477 -- 15,254,477

Total long-term liabilities 18,996,817 36,286,415 55,283,232Total liabilities 22,802,884 46,327,583 69,130,467

Net assets:Invested in capital assets, net of related debt 303,187 -- 303,187 Unrestricted (deficit) (10,166,549) (8,657,715) (18,824,264)

Total net assets (9,863,362) (8,657,715) (18,521,077)

Total liabilities and net assets 12,939,522$ 37,669,868$ 50,609,390$

151

COUNTY OF MONTEREY

Combining Statement of Revenues, Expenses and Changes in Net AssetsInternal Service Funds



Operating revenues:Charges for services 7,805,957$ 12,570,589$ 20,376,546$

Total operating revenues 7,805,957 12,570,589 20,376,546

Operating expenses:Services and supplies 1,341,921 1,675,160 3,017,081Claims expense 786,372 13,458,060 14,244,432Purchased services 139,353 796,786 936,139Insurance 487,533 759,024 1,246,557Depreciation 732,955 -- 732,955

Total operating expenses 3,488,134 16,689,030 20,177,164

Net operating income (loss) 4,317,823 (4,118,441) 199,382

Non-operating revenues (expenses):Interest income 84,159 374,009 458,168Interest expense (897,466) -- (897,466)

Total non-operating revenues (expenses) (813,307) 374,009 (439,298)

Change in net assets 3,504,516 (3,744,432) (239,916)

Net assets - beginning of year (13,724,558) (5,100,877) (18,825,435)Prior period adjustment 356,680 187,594 544,274

Net assets - end of year (9,863,362)$ (8,657,715)$ (18,521,077)$

152

COUNTY OF MONTEREY

Combining Statement of Cash FlowsInternal Service Funds



Cash flows from operating activities:Cash receipts from customers and users 7,805,957$ 12,603,070$ 20,409,027$ Cash paid to suppliers for goods and services (3,529,063) (10,363,641) (13,892,704)

Net cash provided by operating activities 4,276,894 2,239,429 6,516,323

Cash flows from capital and related financing activities:Principal payments on COPS, bonds and loans (1,524,678) -- (1,524,678)Interest payments on COPS, bonds and loans (842,883) -- (842,883)

Net cash provided (used) by capital and related financing activities (2,367,561) -- (2,367,561)

Cash flow from investing activities:Interest payments received 84,159 374,009 458,168 Net cash provided (used) by investing activities 84,159 374,009 458,168

Net increase (decrease) in cash and cash equivalents 1,993,492 2,613,438 4,606,930

Cash and cash equivalents, July 1 5,772,099 35,056,430 40,828,529

Cash and cash equivalents, June 30 7,765,591$ 37,669,868$ 45,435,459$

Reconciliation of operating income to net cashProvided by operating activities:Operating income (loss) 4,317,823$ (4,118,441)$ 199,382$ Adjustments to reconcile operating income to net

Cash provided (used) by operating activities:Depreciation 732,955 -- 732,955 (Increase) decrease in accounts receivable -- 32,481 32,481 Increase (decrease) in accounts payable 38,470 72,963 111,433 Increase (decrease) in claims liability (812,354) 6,252,426 5,440,072

Total adjustments (40,929) 6,357,870 6,316,941

Net cash provided (used) by operating activities 4,276,894$ 2,239,429$ 6,516,323$

153

154


155

AGENCY FUNDS

156


COUNTY OF MONTEREY

Combining Statement of Changes in Assets and LiabilitiesAgency Funds


Balance Balance

July 1, 2009 Additions Deductions June 30, 2010Clearing and revolving fundsAssets:

Cash and cash equivalents 1,333,992$ 2,262,908$ --$ 3,596,900$ Total assets 1,333,992$ 2,262,908$ --$ 3,596,900$

Liabilities:Accounts payable (49,091)$ 891,523$ --$ 842,432$ Assets held as agency for others 1,383,083 1,371,385 -- 2,754,468

Total liabilities 1,333,992$ 2,262,908$ --$ 3,596,900$

Taxes and interestAssets:

Cash and cash equivalents 11,221,340$ --$ 1,756,893$ 9,464,447$ Receivables - Taxes 36,008,911 - 2,666,942 33,341,969

Total assets 47,230,251$ --$ 4,423,835$ 42,806,416$

Liabilities:Accounts payable 2,054,997$ --$ 2,054,345$ 652$ Assets held as agency for others 45,175,254 -- 2,369,490 42,805,764

Total liabilities 47,230,251$ --$ 4,423,835$ 42,806,416$

DepartmentalAssets:

Cash and cash equivalents 8,023,502$ --$ 434,894$ 7,588,608$ Long term receivables 30,000 -- -- 30,000

Total assets 8,053,502$ --$ 434,894$ 7,618,608$

Liabilities:Accounts payable (9,658)$ 5,221$ --$ (4,437)$ Assets held as agency for others 8,063,160 -- 440,115 7,623,045

Total liabilities 8,053,502$ 5,221$ 440,115$ 7,618,608$

continued

157

COUNTY OF MONTEREY

Combining Statement of Changes in Assets and LiabilitiesAgency Funds


Balance Balance

July 1, 2009 Additions Deductions June 30, 2010TransitAssets:

Cash and cash equivalents 5,170,945$ 1,316,540$ --$ 6,487,485$ Total assets 5,170,945$ 1,316,540$ --$ 6,487,485$

Liabilities:Assets held as agency for others 5,170,945$ 1,316,540$ --$ 6,487,485

Total liabilities 5,170,945$ 1,316,540$ --$ 6,487,485$

Total all agency fundsAssets:

Cash and cash equivalents 25,749,779$ 3,579,448$ 2,191,787$ 27,137,440$ Receivables - Taxes 36,008,911 -- 2,666,942 33,341,969 Long term receivables 30,000 -- -- 30,000

Total assets 61,788,690$ 3,579,448$ 4,858,729$ 60,509,409$

Liabilities:Accounts payable 1,996,248$ 896,744$ 2,054,345$ 838,647$ Assets held as agency for others 59,792,442 2,687,925 2,809,605 59,670,762

Total liabilities 61,788,690$ 3,584,669$ 4,863,950$ 60,509,409$

158

159

DETAILED BUDGET SCHEDULES

160


COUNTY OF MONTEREY

General FundSchedule of Expenditures-Budget and Actual on Budgetary Basis


Original Final Actual AmountsGeneral Government

Assessor 5,446,967$ 5,446,967$ 4,992,120$ 454,847$ Auditor-Controller 5,500,334 5,500,334 5,235,728 264,606 Annual County Audit 200,000 200,000 147,682 52,318 County Overhead Recovered (6,235,628) (6,235,628) (6,620,241) 384,613 Short Term Borrowing 95,000 95,000 84,697 10,303 Board of Supervisors 3,073,620 3,073,620 2,910,887 162,733 CAO - Administration / Finance / Budget 2,899,479 2,809,337 2,801,419 7,918 Contracts & Purchasing 912,166 912,166 863,167 48,999 Human Resources 2,759,523 2,759,523 2,458,980 300,543 Intergovernmental / Legislative Affairs 1,188,755 1,218,922 1,133,462 85,460 Office of Emergency Services 1,797,032 1,797,032 1,745,336 51,696 Risk Management 495,793 495,793 199,844 295,949 Contributions 2,597,234 2,597,234 2,421,773 175,461 Courts 8,723,350 8,723,350 8,031,052 692,298 Economic Development 1,619,833 1,619,833 1,444,633 175,200 County Memberships 55,500 55,500 46,881 8,619 Insurance & Other General Expenditures 1,210,431 1,210,431 960,938 249,493 Medical Care Services 8,449,274 8,449,274 8,291,172 158,102 Other Financing Uses 1,010,000 1,010,000 131,068 878,932 Self Insurance 4,286,500 4,286,500 -- 4,286,500 Clerk of the Board 753,200 753,200 667,258 85,942 County Counsel 3,005,665 3,465,665 3,207,243 258,422 Elections 4,930,525 4,930,525 3,817,518 1,113,007 Equal Opportunity Office 619,038 619,038 533,904 85,134 Telecommunications 1,391,498 1,741,498 1,434,860 306,638 Information Technology Systems 1,016,149 1,076,985 (298,290) 1,375,275 Printing & Graphics 349,653 349,653 339,146 10,507 Records Retention 513,322 513,322 508,436 4,886 Planning Services 6,407,596 6,407,596 5,625,487 782,109 Litter Control 1,072,598 1,072,598 1,014,859 57,739 Architectural Services 293,558 293,558 (28,338) 321,896 Courier & Mail Services 199,520 199,520 (73,627) 273,147 Facilities Services 6,459,559 6,459,559 6,437,389 22,170 Fleet Services 749,250 749,250 608,768 140,482 Vehicle Lease Program 826,639 826,639 401,476 425,163 Surveyor 402,468 402,468 349,215 53,253 Building Services 5,906,515 6,114,515 5,296,368 818,147 RMA Administration 275,272 275,272 270,203 5,069 RHO Administration -- -- 45,000 (45,000) County Disposal Sites 408,010 408,010 141,886 266,124 Treasurer - Tax Collector 6,269,536 6,271,508 5,487,294 784,214

Total General Government 87,934,734 88,955,567 73,066,653 15,888,914

continued

Variance with Final Budget

Positive (Negative)

Budgeted Amounts

161

COUNTY OF MONTEREY



Original Final Actual Amounts


Positive (Negative)

Budgeted Amounts

Public Safety and ProtectionAgriculture Commissioner 8,579,793$ 8,726,243$ 8,283,881$ 442,362$ Child Support Services 11,059,616 11,059,616 10,738,001 321,615 Clerk-Recorder 1,741,815 1,746,315 1,351,146 395,169 District Attorney 16,892,173 17,412,030 16,462,970 949,060 Emergency Communications 9,103,724 9,206,083 8,261,778 944,305 Probation 33,482,131 34,614,545 34,524,504 90,041 Public Defender 9,499,146 9,872,146 9,872,146 -- Sheriff - Admin & Enforcement Ops 37,776,787 39,003,987 38,260,182 743,805 Sheriff - Coroner Operations 1,820,900 1,860,900 1,759,493 101,407 Sheriff - Custody Operations 31,600,679 31,570,100 29,540,897 2,029,203 Sheriff - Inmate Medical Costs 5,803,042 5,803,042 5,454,329 348,713

Total Public Safety and Protection 167,359,806 170,875,007 164,509,327 6,365,680

Health and SanitationAnimal Services 2,157,277 2,157,277 1,994,175 163,102 Behavioral Health 61,560,346 61,560,346 57,486,108 4,074,238 Public Health 16,232,787 17,559,553 16,819,552 740,001 Children's Medical Services 8,287,549 8,287,549 7,882,851 404,698 Environmental Health 8,719,385 8,719,385 8,313,525 405,860 Emergency Medical Services 1,603,685 1,448,282 1,070,892 377,390 Clinic Services 22,656,822 23,962,148 22,397,283 1,564,865 Public Guardian / Administrator 1,201,306 1,201,306 1,199,644 1,662

Total Health and Sanitation 122,419,157 124,895,846 117,164,030 7,731,816

Public AssistanceEntitlement Programs 73,900,135 73,803,461 69,247,327 4,556,134 Entitlement Programs - Gen. Assistance 764,695 837,695 833,870 3,825 Military & Veterans' Services 658,314 658,314 605,640 52,674 Community Programs 508,871 2,108,871 593,576 1,515,295 Social Services 77,711,034 86,451,694 77,425,481 9,026,213 Child Care Planning Council 548,616 1,413,270 1,244,921 168,349 Senior & Aging Services 3,276,466 3,125,597 2,985,033 140,564

Total Public Assistance 157,368,131 168,398,902 152,935,848 15,463,054

EducationCooperative Extension Service 631,462 631,462 544,921 86,541

Total Education 631,462 631,462 544,921 86,541

continued

162

COUNTY OF MONTEREY



Original Final Actual Amounts


Positive (Negative)

Budgeted Amounts

Recreation and Cultural ServicesParks 9,751,141$ 9,751,141$ 8,546,183$ 1,204,958$

Total Recreation and Cultural Services 9,751,141 9,751,141 8,546,183 1,204,958

Non-Appropriations UnitDebt service 432,155 432,155 233,951 198,204 Contingency 1,174,230 311,063 -- 311,063

Total General Fund 547,070,816$ 564,251,143$ 517,000,913$ 47,250,230$

163

164


165

STATISTICAL SECTION

166

STATISTICAL SECTION

The information in this section is not covered by the Independent Auditor’s Report, but is presented as supplemental data for the benefit of the readers of the comprehensive financial report. Financial Trends These schedules contain trend information to help the reader understand how the County’s

financial performance and well-being have changed over time. (Schedule 1-4) Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local

revenue sources, property tax and sales tax. (Schedule 5-10) Debt Capacity These schedules present information to help the reader assess the affordability of the County’s

current levels of outstanding debt and the County’s ability to issue additional debt in the future. (Schedule 11-13)

Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the

environment within which the County’s financial activities take place. (Schedule 14-16) Operating Information These schedules contain service and infrastructure data to help the reader understand how the

information in the County’s financial report relates to the services the County provides and the activities it performs. (Schedule 17-18)

Schedule 1

Fiscal Year Ended June 30,

2002 2003 2004 2005 2006 2007 2008 2009 2010

Governmental activities:Invested in capital assets, net of related debt 368,529$ 465,234$ 470,684$ 459,041$ 463,900$ 472,945$ 488,623$ 502,815$ 499,357$

Restricted -- 95,272 65,960 75,421 94,186 105,712 103,947 105,250 106,790

Unrestricted 156,552 (7,278) 532 39,461 42,940 67,582 61,497 47,043 27,473

Total governemental activities net assets 525,081 553,228 537,176 573,923 601,026 646,239 654,067 655,108 633,620

Business-type activities:Invested in capital assets, net of related debt 62,635 49,678 46,684 55,814 50,634 47,334 46,079 47,265 49,185

Unrestricted (26,006) (23,307) (19,159) (1,831) 734 12,522 26,513 32,795 44,469

Total business-type activities net assets 36,629 26,371 27,525 53,983 51,368 59,856 72,592 80,060 93,654

Total Primary government Invested in capital assets, net of related debt 431,164 514,912 517,368 514,855 514,534 520,279 534,702 550,080 548,542

Restricted -- 95,272 65,960 75,421 94,186 105,712 103,947 105,250 106,790

Unrestricted 127,546 (30,585) (18,627) 37,630 43,674 80,104 88,010 79,838 71,942 Total primary government net assets 558,710$ 579,599$ 564,701$ 627,906$ 652,394$ 706,095$ 726,659$ 735,168$ 727,274$

Notes:

1 Accounting standards require that net assets be reported in the three components in the financial statements:

invested in capital assets, net of related debt; restricted; and unrestricted. Net assets are considered restricted

when (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations

of other governments or (2) imposed by law through constitutional provisioins or enabling legislation.

2.GASB 44 requires this schedule to present information for the last ten years. However, until the county is able to

acquire a full ten-year trend, the title will reflect the actual number of years for which data has been accumulated

(accrual basis of accounting)

Net Assets by Component,

Last Nine Fiscal Years (in thousands)

County of Monterey

167

Schedule 2

Fiscal Year Ended June 30,2002 2003 2004 2005 2006 2007 2008 2009 2010

Expense (by function)Governmental activities:

General government 85,809$ 118,440$ 76,319$ 46,864$ 69,797$ 74,425$ 78,259$ 77,858$ 89,451$ Public safety and protection 186,131 160,948 127,057 150,392 153,047 144,628 187,688 177,793 168,427 Public ways and facilities 29,686 32,199 50,948 52,600 63,174 44,829 39,158 46,389 47,463 Health and sanitation 117,938 88,817 100,883 100,380 93,290 115,157 130,618 135,229 123,966 Public assistance 136,114 124,209 120,371 126,017 129,735 136,395 150,406 158,130 168,968 Education 6,242 5,722 4,969 5,699 5,958 6,341 7,271 7,562 7,808 Recreation and cultural services 7,975 6,857 7,208 6,041 7,154 8,316 10,156 1,158 10,963 Interest on long-term debt 5,049 5,885 4,430 5,987 4,650 3,216 8,780 10,173 9,750

Total governmental activities expenses 574,944 543,077 492,185 493,980 526,805 533,307 612,336 614,292 626,796 Business-type activities:

Natividad Medical Center 130,515 137,192 130,310 166,433 137,698 135,634 186,121 194,876 205,760 Total busisness type activities expenses 130,515 137,192 130,310 166,433 137,698 135,634 186,121 194,876 205,760

Total primary government expenses 705,459$ 680,269$ 622,495$ 660,413$ 664,503$ 668,941$ 798,457$ 809,168$ 832,556$

Program Revenues (by function)Governmental activities:Charges for services:

General government 39,242$ 37,783$ 42,360$ 34,516$ 24,384$ 38,268$ 29,719$ 36,313$ 25,187$ Public safety and protection 41,939 40,745 9,743 23,586 26,289 11,786 15,015 16,789 18,753 Public ways and facilities 11,441 8,288 26,189 25,790 31,184 24,099 27,436 26,336 19,700 Health and sanitation 11,727 13,283 16,385 19,526 23,342 27,163 31,021 30,835 35,502 Public assistance 23 68 12 9 6 8 2,083 64 1,591 Education 139 159 79 94 110 273 413 493 382 Recreation and cultural services 4,637 4,489 5,545 5,058 7,774 5,994 7,573 6,974 6,353 Operating grants and contributions 310,594 235,457 227,820 244,208 279,696 294,631 286,808 303,095 310,965 Capital grants and contributions 9,720 3,174 1,094 427 7,327 718 -- -- 11,958

Total governmental activities program revenues 429,462 343,446 329,227 353,214 400,112 402,940 400,068 420,899 430,391 Business-type activities:

Charges for services:Patient services 142,807 128,424 147,993 150,638 107,387 133,071 182,947 185,600 219,326

Operating grants and contributions -- -- -- -- -- -- -- 12,921 -- Capital grants and contributions -- -- 255 -- -- -- 10,339 3,158 --

Total business-type activities revenues 142,807 128,424 148,248 150,638 107,387 133,071 193,286 201,679 219,326 Total primary governement program revenues 572,269 471,870 477,475 503,852 507,499 536,011 593,354 622,578 649,717 Net (expense) revenue

Governmental activities (130,367) (199,631) (162,958) (140,766) (126,693) (130,367) (212,268) (203,393) (196,405) Business-type activities (2,563) (8,768) (17,938) (15,794) (30,311) (2,563) 7,165 6,803 13,567

Total primary net expense (132,930)$ (208,399)$ (180,896)$ (156,560)$ (157,004)$ (132,930)$ (205,103)$ (196,590)$ (182,838)$

continued

County of MontereyChanges in Net Assets

Last Nine Fiscal Years (in thousands)(accrual basis of accounting)

168

Schedule 2

Fiscal Year Ended June 30,2002 2003 2004 2005 2006 2007 2008 2009 2010

General Revenues & Other Changes in Net AssetsGovernmental activities:

Taxes:Property taxes 62,771$ 66,809$ 74,994$ 79,088$ 127,363$ 137,625$ 156,088$ 149,239$ 130,817$ Sales tax 7,437 7,555 6,503 6,717 6,552 5,767 6,782 6,565 5,379 Sales tax in-lieu -- -- -- 1,497 -- -- -- -- -- Vehicle license fees and in-lieu 37,463 39,726 33,325 28,493 -- -- 13,773 -- -- Transient occupancy & Other 15,286 15,064 21,679 39,312 23,814 24,627 24,941 24,846 21,170

Unrestricted grants & contributions -- 2,608 -- -- -- -- -- 12,243 11,610 Investment earnings 11,415 10,070 5,641 7,355 12,620 14,366 11,609 2,073 4,091 Other 3,457 6,332 9,934 17,325 10,369 7,213 8,265 5,067 4,070 Transfers 14,361 7,095 18,931 -- (26,776) (10,372) (4,200) -- -- Special item -- -- -- -- -- -- -- -- (2,050) Extraordinary item -- -- -- -- -- -- -- -- (2,171)

Total governemental activities 152,190 155,259 171,007 179,787 153,942 179,226 217,258 200,033 172,915 Business-type activities:

Unrestricted grants & contributions 1,180 608 -- 42,253 920 679 -- -- -- Miscellaneous 2,211 7,997 2,147 -- -- -- 1,371 665 -- Transfers (14,361) 7,095 (18,931) -- 26,776 10,372 4,200 -- --

Total business-type activities (10,970) 15,700 (16,784) 42,253 27,696 11,051 5,571 665 -- Total primary government 141,220 170,959 154,223 222,040 181,638 190,277 222,829 200,698 172,915

Changes in Net AssetsGovernmental activities 6,438 (44,372) 8,049 39,021 27,249 48,859 4,990 (3,360) (23,490) Business type activities 1,322 (7,258) 1,154 26,459 (2,615) 8,488 12,736 7,468 13,567

Total primary government 7,760$ (51,630)$ 9,203$ 65,480$ 24,634$ 57,347$ 17,726$ 4,108$ (9,923)$

Note: GASB 44 Requires this schedule to present information for the last ten years.However until the County is able to compile a full ten - year trend, the title of thewill reflect the the actual number of years for which has been accumulated.

Changes in Net Assets (continued)Last Nine Fiscal Years (in thousands)

(accrual basis of accounting)

County of Monterey

169

Schedule 3

Fiscal Year Ended June 30,2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

General FundReserved 10,657$ 10,639$ 9,959$ 10,618$ 8,316$ 9,756$ 8,789$ 8,524$ 7,600$ 1,891$ Unreserved 36,253 39,886 21,872 41,737 78,701 77,932 92,334 95,308 80,731 74,612

Total general fund 46,910 50,525 31,831 52,355 87,017 87,688 101,123 103,832 88,331 76,503

All Other Governmental FundsReserved 26,797 33,352 26,705 40,071 20,528 5,976 4,581 6,071 20,764 9,819

Debt service 12,536 12,655 10,135 9,592 9,684 8,088 16,352 15,238 13,240 15,893 Other reserves -- -- -- -- 3,816 3,778 -- -- -- --

Unreserved, reported in:Special revenue funds 26,105 53,403 43,409 28,388 29,316 24,860 31,774 34,326 40,372 35,609 Capital project funds 23,962 105,034 92,491 62,362 67,585 86,317 129,255 117,420 73,033 62,225 Debt service funds -- -- -- -- 250 1,500 750 -- 6,986 651

Total all other governemental funds 89,400 204,444 172,740 140,413 131,179 130,519 182,712 173,055 154,395 124,197

Total governmental fund balances 136,310$ 254,969$ 204,571$ 192,768$ 218,196$ 218,207$ 283,835$ 276,887$ 242,726$ 200,701$

Notes:Accounting standards require that net assets be reported in three components in the financial statements:invested in capital assets, net of related debt;restricted; and unrestricted. Net assets are consideredrestricted when 1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments or 2) imposed by law through constitutional provisions or enabling legislation.

Fund Balances, Governmental FundsLast Ten Fiscal Years (in thousands)

(modified accrual basis of accounting)

County of Monterey

170

Schedule 4

Fiscal Year Ended June 30,2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Revenues:Taxes 82,094$ 85,013$ 89,910$ 136,501$ 155,107$ 157,728$ 181,923$ 187,810$ 181,287$ 162,220$ Licenses and permits 12,569 17,766 12,400 12,097 14,366 13,840 17,545 13,584 12,114 11,144 Fines,forfeitures & penalties 12,622 16,021 16,354 4,109 5,244 8,634 4,574 8,079 8,795 10,398 Revenues from use of money & property 10,955 11,415 10,030 5,605 7,111 11,653 13,426 10,580 3,872 4,839 Aid from other government agencies 236,727 357,777 278,357 228,914 244,635 281,804 281,075 284,063 306,557 320,663 Charges for services 65,473 75,089 76,062 84,107 88,971 96,596 81,442 97,944 102,163 92,417 Tobacco settlement and miscellaneous 4,094 3,457 6,331 9,934 8,603 10,222 10,576 11,245 9,728 9,055

Total revenues 424,534 566,538 489,444 481,267 524,037 580,477 590,561 613,305 624,516 610,737


General government 54,997 69,062 110,304 73,832 44,532 74,348 74,491 73,785 74,058 82,245 Public safety and protection 132,399 183,795 159,304 125,849 148,873 154,382 149,144 178,397 174,034 166,184 Public ways and facilities 24,633 43,260 29,591 41,140 39,031 65,207 32,993 24,895 65,068 43,937 Health and sanitation 77,857 117,399 87,970 100,711 100,452 95,321 116,715 130,333 133,964 123,491 Public assistance 104,615 135,566 124,588 119,820 125,181 129,802 136,993 147,789 156,667 167,982 Education 5,093 6,154 5,826 4,953 5,548 5,851 6,278 7,023 7,388 7,721 Recreation and cultural services 6,211 7,737 6,972 8,759 5,755 7,001 8,584 8,455 11,097 11,574

Debt service:Interest 2,401 3,112 5,929 2,856 5,444 4,432 7,266 6,004 4,559 4,920 Principal 14,041 7,934 3,562 4,643 2,310 3,186 3,633 5,744 9,787 8,954

Capital outlay 7,262 11,855 12,547 16,511 25,120 15,976 36,932 31,090 46,535 34,949 Total expenditures 429,509 585,874 546,593 499,074 502,246 555,506 573,029 613,515 683,157 651,956 Excess (dificiency) of revenues over (under) expenditures (4,975) (19,336) (57,149) (17,807) 21,791 24,971 17,532 (210) (58,641) (41,220)

Other financing sources (uses):Inception of capital leases -- -- -- -- -- -- 71 -- 74 85 Transfers in 39,270 128,124 44,488 39,179 32,128 32,395 31,736 23,121 55,215 57,030 Transfers out (26,046) (113,763) (37,393) (20,248) (44,314) (57,390) (42,107) (29,821) (55,215) (57,030) Proceeds from borrowing 5,670 83,658 -- 7,579 853 36 146,598 -- 33,618 -- Sale of receivables -- -- -- -- 8,721 -- -- -- -- -- Sale of capital assets -- -- -- -- -- -- -- -- -- 245 Payment to refund bond escrow agent -- -- -- -- -- -- (87,895) -- -- -- Miscellaneous -- -- 24 -- -- -- -- 241 187 -- Total other financing sources (uses) 18,894 98,019 7,119 26,510 (2,612) (24,959) 48,403 (6,459) 33,879 330

Extraordinary item:Supplemental ERAF payment -- -- -- -- -- -- -- -- -- (2,171)

Net change in fund balances: 13,919$ 78,683$ (50,030)$ 8,703$ 19,179$ 12$ 65,935$ (6,669)$ (24,762)$ (43,061)$

Debt Service as a percentage of non-capital expenditures 3.89% 2.01% 1.82% 1.58% 1.63% 1.46% 2.05% 2.03% 2.39% 2.32%

Changes in Fund Balances, Governmental FundsLast Ten Fiscal Years(in thousands)

(modified accrual basis of accounting)

County of Monterey

171

Schedule 5

Fiscal (1) (2) (3) (4)Year Net Total

Ended Secured Unsecured Assessed DirectJune 30, Roll Roll Exemptions Valuations Tax Rate

2001 27,432,425$ 1,448,301$ (904,216)$ 27,976,510$ 1.00%2002 30,481,587 1,550,890 (1,005,420) 31,027,057 1.00%2003 33,363,333 1,633,842 (989,319) 34,007,856 1.00%2004 35,742,970 1,669,501 (1,157,406) 36,255,065 1.00%2005 38,434,502 1,713,181 (1,235,833) 38,911,850 1.00%2006 42,538,965 1,859,928 (1,329,452) 43,069,441 1.00%2007 47,388,757 1,999,660 (1,471,788) 47,916,629 1.00%2008 51,334,367 2,035,086 (1,525,258) 51,844,195 1.00%2009 52,454,129 2,234,086 (1,608,033) 53,080,182 1.00%2010 48,774,186 2,116,423 (1,770,929) 49,119,680 1.00%

Source: Monterey County Property Tax Records

Notes:(1) Secured property is generally the real property, which is defined as land, mineral, timber,

and improvements such as buildings, structures, crops, trees and vines. Also included insecured roll are unitary properties, including railroads and utilities, which cross the countyand are assessed by the State Board of Equalization.

(2) Unsecured property is generally personal property, including machinery, equipment , office tools, supplies mobile homes and aircraft.

(3) Exempt properties include numerous full and partial exclusions/exemptions provided.(4) Article XIIIA, added to the California Construction by Proposition 13 in 1978, fixed the

base for valuation of property subject to taxes at the full cash value. Additionally,Proposition 13 limits the property tax rate to 1% of assessed value, plus the rate necessary to fund local voter-approved bonds and special assessments.

Assessed Value and Actual Value of Taxable PropertyLast Ten Fiscal Years

(in thousands of dollars)

County of Monterey

172

Schedule 6

County of MontereyPrincipal Property Taxpayers

Fiscal Year Ended June 30, 2010 and June 30, 2001

2010 2001Taxable Percentage of Taxable Percentage of Assessed Total County Assessed Total County

Type of Value Assessed Value AssessedTaxpayer Business ($'000) Rank Value ($'000) Rank Value

Dynergy Moss Landing LLC Utility 653,200$ 1 1.33% 393,900$ 2 1.41%Pebble Beach Company Tourism 545,858 2 1.11% 625,100 1 2.23%Pacific Gas & Electric Company Utility 382,288 3 0.78% 249,168 3 0.89%Texaco Inc. Petroleum 304,249 4 0.62% 104,318 7 -Pacific Bell Company Utility 108,485 5 0.22% 173,209 4 0.62%Pacific Holdings LP ET AL Real Estate 93,794 6 0.19% -- - -D'Arrigo Brothers Company Agriculture 92,248 7 0.19% -- - -California- American Water Company Utility 87,398 8 0.18% -- - -Northridge Fashion Center Retail 75,511 9 0.15% -- - -Dole Fresh Vegetables Inc. Agriculture 65,984 10 0.13% 97,572 5 0.35%Creekbridge Homes LP Construction -- - 97,149 6 0.35%Tanimura Land Company Agriculture -- - 85,703 8 0.31%Basic American Foods Inc Agriculture -- - 80,055 9 0.29%CMP-1 LLC -- - 80,151 10 0.29%Ten Largest Taxpayers' Total 2,409,015 4.90% 1,986,325 7.10%All Other Taxpayers' Total 46,710,665 95.10% 25,990,185 92.90%

Total 49,119,680$ 100% 27,976,510$ 100%

Source : County of Monterey Property Tax Records

Note:For Total Taxable Assessed Value refer to Schedule 5" Assessed Value and Actual Value of Taxable Property".

173

Schedule 7

(1) (3)Fiscal Year Taxes Levied Fiscal Year of the Levy CollectionsEnded for the Percentage in Subsequent Percentage

June 30 Fiscal Year Amount of Levy Years Amount of Levy2001 295,668$ 292,026$ 98.77% 3,199$ 295,225$ 99.85%2002 326,633 320,879 98.24% 4,451 325,330 99.60%2003 360,268 353,783 98.20% 5,127 358,910 99.62%2004 410,453 404,618 98.58% 7,266 411,884 100.35%2005 440,553 434,059 98.52% 8,378 442,437 100.43%2006 487,644 476,758 97.77% 7,098 483,856 99.22%2007 541,741 522,686 96.48% 7,930 530,616 97.95%2008 588,831 556,021 94.43% 15,065 571,086 96.99%2009 603,438 576,924 95.61% 29,000 605,924 100.41%2010 585,686 565,453 96.55% 24,288 589,741 100.69%

Sources: Monterey County Property Tax Records.

Notes:1 Includes Secured , Unsecured, and Unitary Taxes levied for the county itself, school

districts, cities and special districts under the supervision of their own governing boards. Includes adjustments to the tax rolls from the levy date to deliquency date.

2 Includes amounts collected by the County on behalf of itself, school districts, citiesand special districts under the supervision of their own governing boards.

3 Includes adjustments to the levy.Taxes levied less collections to date equal thedeliquent taxes receivable.

County of Monterey

(2)

Total Collections to DateCollected within the

Property Tax Levies and Collections Last Ten Years

(in thousands of dollars)

174

Schedule 8

For Fiscal Year Ended June 30,2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

County Wide 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

Water Resources 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00409 0.00410 0.00329

Cities & Special DistrictsCarmel 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.01000 0.00911Del Rey Oaks 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000Gonzales 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.04495 0.02000 0.00000Greenfield 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.11000 0.22089King City 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.10000 0.16311Marina 0.00439 0.00460 0.00514 0.03559 0.02753 0.00638 0.00624 0.00624 0.04000 0.04041Monterey 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000Pacific Grove 0.00400 0.00400 0.00500 0.00500 0.00300 0.00700 0.00700 0.03000 0.02317 0.00700Sand City 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000Seaside 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000Soledad 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02320 0.13000 0.12307Boronda County Sanitation Dist 0.00000 0.00000 0.00000 0.00000 0.06534 0.00636 0.00800 0.01738 0.01175 0.02612San Lucas County Water Dist 0.00000 0.00000 0.03349 0.03205 0.03780 0.04472 0.04904 0.05000 0.05099 0.05379Soledad Community Health Care 0.01509 0.01144 0.11520 0.12900 0.01561 0.01776 0.02120 0.02320 0.02554 0.02844Aromas County Water District 0.00100 0.00080 0.01200 0.00090 0.00100 0.00700 0.00140 0.00140 0.00170 0.00200

Schools Districts:Alisal Union 0.21223 0.08780 0.09043 0.09082 0.10008 0.05898 0.06457 0.10415 0.07000 0.08070Aromas/San Juan JT Unif Sch District 0.05270 0.04840 0.04810 0.04890 0.02390 0.04750 0.06870 0.00750 0.02000 0.01200Bradley Union 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.05559 0.07000 0.14146Cabrillo College 0.03598 0.03324 0.00108 0.02669 0.03700 0.03800 0.01900 0.01900 0.02100 0.02100Carmel Unified 0.01807 0.01696 0.01349 0.01784 0.01180 0.01263 0.01324 0.01562 0.01000 0.00911Chualar Unified School District 0.04978 0.03818 0.03622 0.04746 0.04597 0.04915 0.01547 0.03040 0.00000 0.00000Coalinga Joint Unified 0.04121 0.02686 0.01584 0.07010 0.03374 0.03281 0.07979 0.11064 0.10000 0.13141 Gonzales Union 0.02417 0.03044 0.02903 0.04666 0.01934 0.03623 0.02986 0.00000 0.02000 0.00000Graves Elementary School District 0.04077 0.00823 0.02278 0.02305 0.02615 0.00000 0.00000 0.00000 0.00000 0.00000Greenfield Union 0.05441 0.04251 0.02869 0.04451 0.06604 0.03787 0.03853 0.07590 0.11000 0.07943

continued

COUNTY OF MONTEREY

Debt Service Tax Rate For County And Major Overlapping GovernmentPer $100 of Assessed Value

Last Ten Fiscal Years

175

Schedule 8

For Fiscal Year Ended June 30,2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Hartnell Community College District 0.02104 0.01852 0.01609 0.02023 0.01714 0.01862 0.01737 0.00000 0.00000 0.00000King City Union 0.04902 0.03802 0.04118 0.08329 0.08885 0.09977 0.10291 0.08527 0.10000 0.16311Mission Union Elementary School District 0.01883 0.01945 0.01523 0.01396 0.02767 0.00000 0.00000 0.00000 0.00000 0.00000Monterey Peninsula Community College 0.02241 0.01978 0.01994 0.02066 0.01800 0.02062 0.01232 0.00000 0.00000 0.00000North Monterey County Unified 0.04122 0.03757 0.03406 0.03703 0.04899 0.01340 0.05051 0.00000 0.00000 0.01587Pacific Grove Unified 0.06020 0.04830 0.02780 0.02297 0.02278 0.02550 0.03086 0.01912 0.02000 0.01617Pajaro JT Unified 0.03012 0.02686 0.02323 0.02545 0.02900 0.03000 0.01900 0.01900 0.02000 0.01200Paso Robels JT Unified 0.01120 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000Pleasant Valley Joint Union 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.05700 0.18000 0.18000Salinas Union High School District 0.03539 0.29660 0.03372 0.03426 0.03549 0.04312 0.05877 0.03842 0.00000 0.00000San Antonio Union 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.05559 0.07000 0.14146San Ardo Union 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.05559 0.07000 0.14146San Lucas Union 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.05590 0.07000 0.14146San Miguel Elementary School 0.03613 0.03516 0.03517 0.03519 0.03624 0.05122 0.05700 0.00000 0.00000 0.00000Santa Rita Union 0.07224 0.06798 0.06216 0.03136 0.03255 0.03774 0.04563 0.07921 0.01000 0.04441Shandon Joint Unified 0.00480 0.00584 0.00600 0.00642 0.00645 0.00646 0.00860 0.00860 0.01000 0.00970Soledad Unified School District 0.06761 0.06032 0.05209 0.05210 0.06373 0.07575 0.08631 0.09952 0.13000 0.12307Spreckles Union 0.04468 0.03936 0.05316 0.05882 0.03075 0.04955 0.05455 0.06730 0.04000 0.03223Washington Union 0.04963 0.04384 0.05144 0.05136 0.05301 0.06992 0.04240 0.09879 0.03000 0.01815West Hills College 0.01467 0.00000 0.01926 0.00057 0.02086 0.02202 0.02715 0.02087 0.06110 0.01388

Source: Monterey County Records

Debt Service Tax Rate For County And Major Overlapping Government (continued)Per $100 of Assessed Value


COUNTY OF MONTEREY

176

Schedule 9

Type of Business 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Apparel stores 6,283$ 7,074$ 7,179$ 7,405$ 9,495$ 9,925$ 11,465$ 13,000$ 11,510$ 9,510$ General merchandise 2,508 2,869 2,473 2,572 2,783 2,776 3,007 3,290 3,372 3,591 Food stores 32,088 41,805 40,699 41,811 42,819 42,613 45,968 48,355 49,372 48,232 Eating and drinking places 48,176 61,696 62,847 61,988 65,854 70,276 69,973 73,007 70,039 67,711 Building materials 58,578 79,845 81,548 94,590 104,464 109,928 110,170 103,443 97,273 84,937 Auto dealers and suppliers 30,083 38,112 38,452 34,305 36,113 40,736 42,028 40,176 37,671 25,189 Service stations 56,120 63,571 57,589 65,687 79,455 93,058 104,121 116,676 129,404 102,257 Other retail stores 62,626 76,063 74,353 73,843 79,324 80,454 83,323 84,600 70,959 56,986 All other outlets 323,142 377,520 340,181 283,026 346,743 374,043 392,575 415,640 396,001 320,728

Totals 619,604$ 748,555$ 705,321$ 665,227$ 767,050$ 823,809$ 862,630$ 898,187$ 865,601$ 719,141$

County direct sales tax rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.08% 0.08% 0.08%

Source: State of California Board of Equalization and The HdL Companies

Notes: 1). Due to confidentiality issues, the names of the ten largest revenue payers are not available . The categories presented are intended to provide alternative information regarding the sources of the county's revenues.2). Prior year data has been updated to include adjustments

Taxable Sales by CategoryLast Ten Calendar Years

(amounts expressed in thousands)

County of Monterey(Unincorporated)

177

Schedule 10

Fiscal Annual GrowthYear Revenue ($) Rate2001 14,430,000 13.80%2002 13,286,548 -7.92%2003 13,476,749 1.43%2004 13,452,336 -0.18%2005 14,420,192 7.19%2006 15,569,105 7.97%2007 16,912,274 8.63%2008 16,441,176 -0.05%2009 14,533,941 -11.60%2010 12,656,751 -12.92%

COUNTY OF MONTEREYTransient Occupancy Tax

Actual ReceiptsLast Ten Fiscal Years

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

TOT revenue trend for period: 2001-10

Revenue ($)

Source :

Monterey County Treasurer- Tax Collector Transient Occupancy Tax Statements and Advantage System report.

Note: The general decline in transient occupancy tax revenue for fiscal year 2010 can be attributed to fewer guests visiting and lower rates due to the general slow down in business as a result of recession during the year.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Fiscal yr

TOT revenue trend for period: 2001-10

Revenue ($)

178

Schedule 11COUNTY OF MONTEREY

As of Fiscal Year 2009-10

Fiscal Government ActivitiesYear Certificates Special General Judgement Certificates Total Percentage Percentage

Ended of Capital Redevelopm Revenue Longterm Assessment Obligation Obligation of Capital Primary of Assessed Per of PersonalJune 30 Particiaption Leases Notes Bonds Loans Bonds Bonds Bonds Participation Leases Gov (1) Value (2) Capita (3) Income (3)

2001 13,360$ 246$ --$ 13,691$ 48,637$ 834$ 28$ --$ 76,796$ --$ 153,592$ 0.55% 382$ 1.27%2002 92,155 645 205 6,725 51,952 420 24 -- 85,710 -- 237,836 0.77% 576 1.90%2003 91,600 403 165 4,242 35,020 183 19 -- 83,995 -- 215,627 0.63% 516 1.70%2004 91,025 147 140 1,995 35,003 179 15 7,470 82,180 -- 218,154 0.60% 516 1.62%2005 89,285 205 115 1,477 34,986 175 10 6,750 80,260 -- 213,263 0.55% 503 1.52%2006 87,470 252 953 1,177 33,948 171 5 6,095 77,495 -- 207,566 0.48% 489 1.43%2007 144,400 223 621 1,131 32,910 166 -- 5,425 75,950 -- 260,826 0.54% 636 1.66%2008 139,570 158 574 1,082 47,939 161 -- 4,730 73,610 2,624 270,448 0.53% 639 1.67%2009 136,260 253 418 33,901 45,122 156 -- 4,015 71,265 1,449 292,839 0.55% 720 1.71%2010 132,800 256 36 33,848 43,365 150 -- 3,275 67,995 83 281,808 0.57% (4) (4)

Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements(1) Includes general bonded debt, other governmental activities debt, business-type activities debt(2) Property value data can be found in Schedule 5 : Assessed Value and Actual Value of Taxable Property(3) Population and personal income data can be found in Schedule 15 : Economic and Demographic Indicators.(4) Data not available

Activities

Ratios of Outstanding Debt by Type Last Ten Fiscal Years (in thousand, except per capita)

Business -Type

179

Schedule 12

Legal Debt Margin Calculation for Fiscal Year Ended June 30, 2010

Net assessed value 49,119,680

Debt Limit 1.25% of net assessed value $613,996

Debts applicable to limit:

General Obligation bonds $0

Less: Amount set aside for

repayment of debt $0

Net debt applicable to limit $0

Legal Debt Margin $613,996

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001Debt Limit 613,996 663,502 648,052 598,958 538,368 486,398 453,188 425,098 387,838 349,706

Total Net Debt Applicable to limit 0 0 0 0 5 10 15 19 24 28

Legal Debt Margin 613,996 663,502 648,052 598,958 538,363 486,388 453,173 425,079 387,814 349,678

Total net debt applicable to the limit

as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.004% 0.01% 0.01%

Notes:

1). Article XIII A of the California State Constitution and Senate Bill 1656, Statutes of 1978, provided for changing assessed value from 25% of cash value to

full cash value. Hence , the 5% limitation on general obligation bond indebtedness imposed by Section 29909 of the Government Code become 1.25%

of assessed value

2). For net assessed value refer to Schedule 5" Assessed Value and Actual Value of Taxable Property"

Fiscal Year Ended June30

County of MontereyLegal Debt Margin InformationLast Fiscal Years ( in thousands)

180

COUNTY OF MONTEREYPledged Revenue Coverage

Last Ten Fiscal YearsAs of Fiscal Year 2009-10

Sanitation Revenue Bonds Water Revenue Bonds

Sanitation Less: Net Water Less: Net Special

Fiscal Year Charges Operating Available Charges Operating Available Assessment

Ended June 30 and Other Expenses Revenue Principal Interest Coverage and Other Expenses Revenue Principal¹ Interest Coverage Collections Principal Interest Coverage

2001 2,445,671 1,847,686 597,985 46,100 84,475 4.58 - - - - - - 18,745 4,000 12,304 1.15

2002 1,498,461 1,013,390 485,071 47,650 58,400 4.57 - - - - - - 17,155 4,000 12,049 1.07

2003 1,192,829 1,060,278 132,551 39,000 67,200 1.25 - - - - - - 15,280 4,000 11,794 0.97

2004 1,296,375 1,123,348 173,026 40,000 65,250 1.64 - - - - - - 13,948 4,000 11,539 0.90

2005 898,415 958,726 (60,311) 43,000 63,250 (0.57) - - - - - - 13,737 4,000 11,284 0.90

2006 1,071,888 1,156,509 (84,621) 45,000 61,100 (0.80) - - - - - - 16,836 4,000 11,029 1.12

2007 1,226,772 1,488,878 (262,106) 46,000 58,850 (2.50) - - - - - - 15,402 5,000 10,742 0.98

2008 1,325,204 1,210,923 114,281 49,000 56,550 1.08 - - - - - - 14,211 5,000 10,423 0.92

2009 1,221,319 1,337,849 (116,530) 52,000 54,100 (1.10) 2,120,037 - 2,120,037 - - - 14,560 5,000 10,104 0.96

2010 1,312,106 1,115,506 196,600 53,000 51,500 1.88 2,028,699 912,582 1,116,117 - 1,597,913 0.70 14,696 6,000 9,754 0.93

Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Sanitation, Water, and Other charges include property tax revenues and investment

earnings. Where expenses exceed revenues in any one year, excess revenues from prior years (Fund Balance) were used to meet debt requirements

¹ No principal payments are scheduled until FY2011

Debt Service Debt Service Debt Service

Schedule 13

Special Assessment Bonds

181

Schedule 14

2009-10 Assessed Valuation (includes unitary utility valuation): 51,230,774,397$ Less: Redevelopment Incremental Valuation 4,286,136,506 Adjusted Assessed Valuation 46,944,637,891$

(1) Percentage Debt at Overlapping tax and assessment debt Applicable June 30, 2010Hartnell Community College District 99.801% 123,796,150$ Monterey Peninsula Community College District 100 125,988,685 Carmel Unified School District 100 38,273,445 North Monterey County Unified School District 100 17,775,000 Pacific Grove Unified School District 100 44,561,000 Soledad Unified School District 100 3,823,829 King City Joint Union High School District 98.599 13,271,425 Salinas Union High School District and School Facilities Improvement District 100 61,794,025 Alisal Union School District 100 43,236,051 King City Union School District 100 10,199,531 Salinas City School District 100 24,825,000 Santa Rita Union School District 100 23,534,523 Washington Union School District 100 13,735,000 Other School Districts Various 36,000,046 City of Marina 100 8,470,000 City of Pacific Grove 100 625,000 Soledad Community Hospital District 100 1,650,000 Monterey County Water Resources Agency Benefit Assessment District, Zone 2C 100 32,855,000 Community Facilities Districts 100 4,302,542 City 1915 Act Bonds 100 28,115,000 Special District 1915 Act Bonds 100 5,086,000 Total overlapping tax and assessment debt 661,917,252$

Direct and overlapping General Fund debtMonterey County General Fund Obligations 100% 200,795,000$ Monterey County Judgment Obligations 100 3,275,000 Monterey Peninsula Unified School District Certificates of Participation 100 7,130,000 Other School District General Fund Obligations Various 18,065,150 City of Carmel General Fund Obligations 100 7,710,000 City of Marina Pension Obligations 100 3,685,000 City of Monterey General Fund Obligations 100 14,535,000 City of Pacific Grove Pension Obligations 100 15,986,138 City of Salinas Certificates of Participation 100 40,710,000 City of Seaside Pension Obligations 100 6,565,000 Carmel Valley Fire Protection District Certificates of Participation 100 1,430,000 Monterey Bay Unified Air Pollution Control Authority 58.87 1,436,428 Pajaro/Sunny Mesa Community Services District General Fund Obligations 100 475,000

Total Direct and overlapping General Fund debt 321,797,716$

Combined total debt (2) 983,714,968$

Ratios to 2009-10 Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.29%Ratios to Adjusted Assessed Valuation: Combined Direct Debt ($204,070,000) 0.43% Combined Total Debt 2.10%

Notes: (1) Percentage of each overlapping agency's assessed valuation located within the boundaries of the county.(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds, and non-bonded capital lease obligations.

STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10: $0

County of MontereyDirect and Overlapping Bonded Debt

As of June 30, 2009(amounts expressed in hundreds)

182

Schedule 15

(1) (2) (3) (4) (5) (6)

Calendar Per Capita Total Personal Median School UnemploymentYear Population Income Income Age Enrollment Rate2000 403,065 30,005$ 12,097,144$ 31.7 71,186 7.4%2001 407,065 30,723 12,540,815 32.0 72,529 7.8%2002 409,210 30,800 12,676,027 31.0 73,416 9.0%2003 410,419 32,469 13,455,580 32.7 73,812 9.0%2004 408,867 33,952 14,074,798 34.5 73,863 8.3%2005 405,090 34,172 14,519,770 36.1 71,971 7.4%2006 401,374 38,193 15,667,000 31.9 69,851 7.0%2007 402,116 38,373 15,586,498 32.1 69,838 7.2%2008 405,660 42,144 17,205,000 32.3 69,828 8.4%2009 410,370 42,356 17,381,644 32.4 70,523 12.0%

Sources:(1) U.S. Census Bureau(2) U.S. Department of Commerce, Bureau of Economic Analysis(3) U.S. Department of Commerce, Bureau of Economic Analysis (in thousands).(4) U.S. Census Bureau, American Community Survey(5) California Department of Education, Education Demographics Unit(6) California Employment Development Department; Labor Market Info Division

Notes:Population data estimates are as of July 2009Per capita personal income was computed using preliminary Census Bureau midyear population estimates.Total personal income is in thousand of dollarsSchool enrolment data includes Kindergarten through grade 12Unemployment Rate is based on annual rate

Demographics and Economic StatisticsLast Ten Calendar Years

County of Monterey

183

Schedule 16

2002 2003 2004 2005 2006 2007 2008 2009Total Total Total Total Total Total Total Total

SALINAS MSATotal

No.of Businesses 10,898 11,096 11,270 11,167 11,543 11,547 12,249 11,770No.of Employees 146,325 147,057 149,475 150,590 150,949 150,960 152,283 146,140Payroll (in thousands) $1,063,998 $1,105,746 $1,162,537 $1,253,718 $1,275,051 $1,274,537 $1,354,222 $1,283,015

AgricultureNo. of Businesses 631 630 602 584 577 571 564 546No. of Employees 43,597 45,581 1,078 51,053 51,097 52,341 52,848 54,635Payroll (in thousands) $246,826 $266,179 $307,580 $336,288 $342,021 $369,556 $367,621 $380,582

Mining6

No. of Businesses 9 9 10 9 9 8 7No. of Employees 225 225 213 192 201 195 207Payroll (in thousands) $3,677 $3,677 $2,359 $3,429 $3,742 $3,828 $4,006

UtilitiesNo. of Businesses 23 25 24 25 26 25 23 21No. of Employees 592 589 480 528 569 553 498 500Payroll (in thousands) $9,635 $10,084 $9,756 $9,714 $8,836 $9,265 $10,210 $11,086

Construction and MiningNo. of Businesses 971 977 995 965 1,012 991 972 930No. of Employees 6,588 6,516 6,920 6,886 7,367 7,101 6,032 4,578Payroll (in thousands) $65,749 $68,047 $71,493 $73,121 $80,519 $81,141 $72,734 $59,777

ManufacturingNo. of Businesses 304 302 293 283 281 267 251 255No. of Employees 8,296 7,888 7,043 6,735 6,274 6,163 6,017 5,861Payroll (in thousands) $77,342 $74,410 $73,187 $73,030 $65,346 $64,045 $62,193 $56,038

Wholesale TradeNo. of Businesses 388 398 411 408 429 421 404 402No. of Employees 5,038 5,207 4,710 5,016 4,938 4,987 5,313 4,940Payroll (in thousands) $57,681 $59,362 $59,857 $71,940 $69,628 $72,518 $77,892 $74,947

Retail TradeNo. of Businesses 1,406 1,372 1,358 1,300 1,330 1,290 1,272 1,221No. of Employees 17,058 16,951 16,969 16,828 16,688 17,045 16,661 14,877Payroll (in thousands) $108,210 $109,210 $114,448 $120,898 $120,907 $123,776 $123,527 $107,453

Transportation and WarehousingNo. of Businesses 264 264 240 231 248 250 250 241No. of Employees 2,860 2,860 2,814 2,955 2,925 3,228 3,152 3,032Payroll (in thousands) $23,957 $23,957 $26,107 $28,851 $28,644 $34,636 $36,686 $34,856

InformationNo. of Businesses 123 123 119 117 116 105 107 98No. of Employees 2,440 2,440 2,307 2,310 2,163 2,137 2,052 1,671Payroll (in thousands) $28,549 $28,549 $31,249 $33,578 $33,618 $35,997 $31,165 $24,735

Finance and InsuranceNo. of Businesses 376 376 375 388 389 398 393 363No. of Employees 4,328 4,328 3,711 3,757 3,816 3,819 3,548 2,857Payroll (in thousands) $54,759 $54,759 $50,791 $63,242 $63,144 $69,518 $68,173 $47,648

Real Estate, Rental and LeasingNo. of Businesses 399 414 428 432 445 420 407 393No. of Employees 2,342 2,405 2,313 2,364 2,497 2,243 1,940 1,730Payroll (in thousands) $17,916 $18,598 $20,400 $21,537 $22,315 $21,402 $17,372 $15,087

ServicesNo. of Businesses 6,004 6,220 6,415 6,425 6,681 7,900 7,233 7,300No. of Employees 52,961 52,539 50,917 51,966 52,414 65,328 53,496 51,459Payroll (in thousands) $369,697 $384,284 $395,309 $418,089 $436,331 $598,670 $479,053 $470,805

Source: Employment Development Department , Labor Market Information

Notes:1 Data are confidential if there are fewer than 3 businesses in a category or one employer makes up 80 percent or more of the

employment in a category2 Data are suppressed because confidential data could be extrapolated if these totals were included3 Figures are as per third quarter of the calendar year4 Data do not include totals for government employment5 Rules instituted by the Federal Bureau of Labor Statistics after September 11, prohibit state departments of labor or economic security from

publicly identifying the names of individual employers. County of Monterey has removed the Major Employers' data from the statistical sectioGASB Statement No 44 allows employment by industry data to be published instead of Major Employers' data

6 Mining industry has been combined with the Construction industry starting in 2009

MSA and Industry

COUNTY OF MONTEREYMajor Industries by Number of Businesses, Employees and Payroll

Last Eight Years

184

Schedule 17

COUNTY OF MONTEREYFull-time Equivalent County Government Employees by Function/Program

Approved Budgeted PositionsLast Ten Fiscal Years

Function/Program 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General government 557.0 581.0 596.0 510.0 462.0 489.0 492.0 485.0 507.0 472.5

Public protection 1,271.0 1,393.0 1,418.0 1,361.0 1,319.0 1,343.0 1,397.0 1,396.0 1,274.0 1,224.5

Public ways and facilities 171.0 178.0 178.0 178.0 150.0 153.0 135.0 135.0 373.0 339.0

Health and sanitation 548.0 599.0 616.0 614.0 688.0 757.0 820.0 814.0 863.0 809.8

Public assistance 784.0 813.0 838.0 772.0 759.0 775.0 781.0 781.0 817.0 806.0

Recreation and Education 123.0 130.0 131.0 130.0 136.0 140.0 145.0 145.0 169.0 153.5

Hospital 740.0 885.0 956.0 795.0 775.0 799.0 754.0 754.0 785.0 770.9

Total governmental positions 4,194.0 4,579.0 4,733.0 4,360.0 4,289.0 4,456.0 4,524.0 4,510.0 4,788.0 4,576.2

Special District:

Water Resource Agency 57.0 59.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0 63.0

Total Positions: 4,251.0 4,638.0 4,793.0 4,420.0 4,349.0 4,516.0 4,584.0 4,570.0 4,848.0 4,639.2

Source: Monterey County Recommended Budget Book Position Information

Note: Public ways and facilities includes Resources Management Agency.

Fiscal Year Ended June 30,

185

Schedule 18

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010GENERAL GOVERNMENT101 Assessment Appeals Board

Applications Reviewed 234 132 265 331 524 212 123 360 825 1,265115 Revenue

Accounts 92,000 90,000 125,000 125,000 125,000 125,000 125,000 91,764 95,000 125,000117 Treasurer- Tax Collector

Number of payments transactions 218,500 285,000 304,000 329,000 350,000 362,000 354,000 362,000 360,000 355,000Treasury deposits processed 9,303 9,529 8,500 9,000 8,500 9,100 9,000 9,200 10,000 13,000

118 AssessorDeeds processed 18,561 19,722 21,712 25,181 26,309 24,903 20,460 16,555 16,527 18,504

151 TelecommunicationsTelephone instruments and radios supported unavail 13,500 7,290 7,330 7,061 7,511 7,625 7,920 8,025 9,262Telephone calls completed unavail 7,300,000 10,000,000 14,000,000 18,000,000 16,300,000 17,750,000 19,000,000 18,500,000 18,100,000

193 Information TechnologyPCs and laptops supported unavail 2,938 3,954 4,149 4,159 4,485 4,643 4,885 5,705 5,189Calls to the Call Center unavail 6,800 7,000 12,000 12,000 15,000 37,000 45,000 45,000 37,604Training classes unavail 1,200 1,350 1,400 1,400 1,650 1,200 2,000 1,400 1,425

291 Recorder -County ClerkDocuments recorded 86,638 110,804 127,597 157,438 138,690 137,348 114,673 94,913 88,153 85,686Marriage licenses issued 3,471 3,776 3,278 3,150 3,123 3,067 2,990 2,913 2,828 2,625Fictitious business names filed 2,580 2,428 2,561 2,810 2,059 3,040 3,097 2,719 2,625 2,664

continued

Fiscal Year

County of MontereyOperating Indicators by Function/ Program


186

Schedule 18

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010PUBLIC PROTECTION152 Emergency Communications

911 and non-emergency calls unavail unavail unavail 600,000 600,000 612,000 650,000 614,295 650,000 650,000CAD incidents unavail unavail unavail 556,059 560,422 560,026 560,000 560,000 560,000 - (1)CAD comments unavail unavail unavail unavail unavail unavail unavail unavail unavail 6,896,906 (2)

224 District Attorney's OfficeFelonies and misdemeanors reviewed 18,400 17,968 17,475 17,612 17,146 18,348 18,250 16,123 16,523 14,139Civil cases opened unavail 197 199 191 231 228 253 298 300 243

225 Child Support ServicesCases 23,728 22,752 22,116 21,280 21,370 20,266 19,860 19,709 19,639 19,366

227 Public DefenderFelonies reviewed 2,255 2,688 2,928 3,306 3,798 4,592 5,289 5,977 4,756 5,689Misdemeanors 4,607 6,192 6,229 6,535 6,859 8,170 7,322 7,834 7,556 10,545Juveniles 2,013 3,612 1,932 1,864 2,143 1,091 999 929 2,632 2,185

228 Court Assigned CounselFelonies reviewed unavail 618 707 918 952 986 991 996 unavail 824Misdemeanors unavail 673 646 537 573 609 640 678 unavail 491Juveniles unavail unavail unavail 194 211 190 198 184 unavail 512

230 Sheriff -Administration and Enforcement BureauWarrants reviewed 12,136 12,500 17,000 13,355 14,538 15,348 15,900 14,890 11,784 10,280Felony and misdemeanor offenses reported 3,500 3,700 4,700 4,935 5,181 5,447 5,475 5,818 5,474 4,816

235 Sheriff- Joint Gang Task ForceFelony and misdemeanor arrests n/a n/a n/a n/a 437 573 653 717 545 656Task Force and/or Gang Awareness n/a n/a n/a n/a 12 20 55 55 52 29

251 Sheriff- Custody Operations BureauPrisoners booked 18,927 18,022 18,397 17,705 17,919 17,144 16,963 17,434 17,252 16,209Average daily prisoner population 972 963 930 1,000 1,100 1,151 1,152 1,085 1,037 1,030Court transportation 19,473 21,000 23,000 23,047 24,848 25,866 25,387 23,770 21,890 21,924

255 ProbationJuvenile referrals unavail unavail unavail 3,113 2,892 3,034 3,034 2,841 2,736 3,102Standard reports unavail unavail unavail unavail 2,652 3,581 3,637 3,460 3,228 3,246Supervision unavail unavail unavail unavail 7,089 7,995 8,079 8,485 8,714 9,011

256 Juvenile Institutions and Alternative ProgramAdmissions 1,680 1,800 1,702 1,611 16,335 1,284 1,285 1,323 1,438 1,376

292 Sheriff-CoronerTotal investigations 1,082 1,155 1,185 1,178 1,064 1,064 1,015 1,039 994 1,025Coroner's cases 284 328 345 388 348 287 279 309 320 335

293 PlanningDiscretionary permits initiated 536 568 635 480 411 748 852 804 691 736

299 Building ServicesBuilding and grading permits 2,760 3,185 3,471 4,252 3,906 3,681 3,425 2,905 2,614 2,273Plan checks 3,278 3,404 3,354 2,252 2,388 2,725 2,468 2,097 1,890 1,141Building inspections 28,615 22,000 23,000 25,154 25,154 26,939 20,901 17,475 15,725 9,685

930 Water ResourcesTotal water deliveries- acre- feet 18,025 19,486 19,628 21,982 17,754 16,663 21,245 23,155 21,598 17,355Nacimiemento Hydro Project kilowatt hours 15,307,481 16,550,656 11,569,402 13,027,168 13,118,178 17,427,225 16,928,820 12,138,366 10,150,151 9,905,705

continued

Operating Indicators by Function/ Program (continued)Last Ten Fiscal Years

Fiscal Year

County of Monterey

187

Schedule 18

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010PUBLIC WAYS AND FACILITIES:300 Public Works

Road miles maintained 1,254 1,243 1,243 1,240 1,240 1,240 1,240 1,240 1,240 1157Bridges maintained 173 173 173 173 173 173 173 173 173 173

HEALTH AND SANITATION296 Animal Field Services

Licenses sold / Citations issued 4,174 3,809 5,991 7,576 7,287 7,724 7,340 7,367 7,400 - (1)Citations issued unavail unavail unavail unavail unavail unavail unavail unavail unavail 3,000 (2)Service calls 7,293 6,951 6,400 4,433 3,684 6,050 7,450 7,220 7,500 7,000Animals admitted to shelter 6,521 5,702 5,452 4,143 4,364 4,083 3,947 3,654 3,750 2,900

411 HealthPublic health nursing home visits 6,828 9,402 10,233 10,516 8,736 9,110 2,805 6,943 9,918 13,380Laboratory tests unavail 46,492 57,500 53,819 59,406 60,553 37,563 37,475 37,489 42,000

413 Clinic ServicesPrimary care clinic visits 40,180 47,439 55,245 60,993 99,971 118,165 150,200 145,705 152,942 166,097

415 Mental HealthInpatient services (days) 18,772 23,762 14,107 11,675 17,572 1,345 1,350 2,663 2,700 1,940Locked facilities (days) 7,452 7,596 7,524 11,122 8,042 13,888 13,888 12,042 12,100 8,130

419 Public GuardianConservatorship cases n/a n/a n/a n/a n/a n/a 239 240 240 263Representative payee cases n/a n/a n/a n/a n/a n/a 370 381 381 394

417 Alcohol and Drug ProgramsMethadone maintenance dosing 36,840 43,302 52,742 54,016 54,958 50,509 49,825 52,416 52,077 46,431Narcotic treatment program counseling 14,280 14,765 19,238 19,086 19,086 23,021 24,338 23,406 22,892 25,292Residential bed days 46,897 50,012 56,344 55,530 55,530 79,426 54,521 54,885 49,686 39,091

440 Children's Medical ServicesCCS Referrals reviewed for medical eligibility 1,750 1,761 2,181 1,504 2,013 2,476 4,641 2,894 2,818 3,000CCS Referrals opened for medical services 550 970 1,196 1,051 1,006 770 1,296 1,810 1,538 1,820CHDP review preventive health screens 26,123 21,082 16,135 15,880 15,557 17,527 15,450 11,711 14,143 14,200CHDP patient tracking for follow-up screens 2,132 3,708 3,390 3,327 2,642 2,718 3,561 2,234 2,174 2,300

PUBLIC ASSISTANCE 501 Social Services

Food Stamps and Medi-Cal 23,554 26,260 25,488 26,071 27,764 29,200 29,913 32,795 36,133 38,743CWS permanent placement 389 104 331 215 306 303 328 299 289 243Adult Protective Services & In- Home Supportive Servic 2,494 93 2,906 2,659 2,694 2,809 3,108 3,361 3,618 3,832

531 CalWORKs/TANF Benefits CaseloadsOngoing 4,832 4,543 4,675 4,811 4,359 4,518 4,389 4,583 5,160 5,708Employment services 1,589 1,935 1,950 1,633 1,373 1,137 2,436 2,538 2,883 3,228Childcare services 445 352 334 286 273 247 334 360 406 412

535 Out-of-Home Care, Average Monthly CaseloadFoster care ongoing 422 371 402 492 462 535 504 534 478 404Court dependent children 19 15 12 5 4 4 4 6 4 5Aid to adoptions 364 437 495 449 578 609 644 702 731 758

continued


Fiscal Year

County of MontereyOperating Indicators by Function/ Program (continued)

188

Schedule 18

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010PUBLIC ASSISTANCE (continued)548 In- Home Support Services- Client Services paid cases

Personal care services program 1,930 2,105 2,296 2,037 2,112 2,418 2,615 2,859 3,129 3,291Residual/ Waiver Plus 564 596 610 621 581 391 382 384 399 424

551 Aid to IndigentsRegular general assistance 221 266 148 178 148 110 125 151 180 206

559 Military and Veterans Affair caseload itemsClaims filed 5,755 5,757 4,489 2,641 2,191 1,878 1,745 1,793 1,409 1,544Veterans transported to VA Medical 2,653 2,134 1,963 1,545 2,790 884 1,350 1,612 1,095 952

EDUCATION611 Library

Customers visiting library 668,324 665,620 637,787 688,246 642,226 694,259 826,716 942,871 1,085,041 996,065Customers using library computers 113,765 124,657 135,458 140,806 162,531 187,651 229,676 245,082 259,731 275,344

621 Cooperative Extension Seminars and presentations organized unavail unavail 174 192 161 200 195 171 126 1324-H Youth development activities unavail unavail 4,727 4,744 4,687 5,827 6,032 4,663 4,201 4,100

RECREATION AND CULTURAL SERVICES750 Parks

Visitors 1,392,823 1,419,565 1,384,571 1,415,262 1,400,000 1,400,000 1,400,000 1,400,000 1,255,235 1,255,235

Notes:Data for prior years may change as more updated information becomes available

(1)discontinued data(2)previously unreported data

Fiscal Year

County of MontereyOperating Indicators by Function/ Program (continued)


189

Schedule 19COUNTY OF MONTEREY

Capital Asset StatisticsLast Six Fiscal Years

2005 2006 2007 2008 2009 2010General Government

Buildings 19 21 21 15 11 11Vehicles 0 125 134 114 113 112Heavy Equipment 0 17 13 2 7 9Communication Tower - - - - - 6 (1)

Public ProtectionBuildings 20 19 23 27 26 26Vehicles 468 493 484 553 411 453Heavy Equipment 0 36 58 3 0 24

Public Ways & Facilities (Road Dept)Bridges 123 171 171 173 171 173Culverts (ft) 218749 218749 218749 219943 219943 218749Drain System Inlets 226 226 226 977 977 226Drain System Pipe (ft) 68752 68752 68752 68752 68752 68752Fuel Stations 3 3 3 3 3 3Heavy Road Equipment 44 45 44 46 84 76Lift Stations 2 16 21 18 16 21Maintained Road Miles (paved) 1239 1100 1099 1100 1100 1157Maintenance District Facility Buildings 5 5 5 5 5 5Public Parks & Open Space Acreage 4 4 4 8 8 4Road Lane Miles 2611 2611 2611 2480 2480 2611Sanitary Heavy Equipment 2 2 2 1 1 2Sanitary Sewer Lines(miles) 54 44 60 45 30 60Street Light 106 1026 0 835 850 113Traffic Signals 40 20 20 30 24 39Vehicles 0 111 89 125 71 102

Water ResourcesDams 2 2 2 2 2 2Salinas River Diversion Facility - - - - - 1 (2)Heavy Equipment 6 6 7 7 7 7Hydro-Electric Plants 1 1 1 1 1 1Levees 1 1 1 1 1 1Pump Stations 2 5 5 5 5 5Reclamation Ditches 1 1 1 1 1 1Vehicles 24 29 29 30 27 29Petrero Tide Gate 0 1 1 1 1 1Homes 0 2 2 2 2 2Pipe Miles 0 50 50 50 50 50Wells 0 21 21 21 21 21Booster Pumps 0 3 3 3 3 3

HealthBuildings 32 7 15 7 8 15Vehicles 94 131 171 161 33 148

Public AssistanceBuildings 1 1 1 1 1 5Vehicles 75 107 114 114 101 118

continued

For Fiscal Year Ended June 30,

190

Schedule 19

COUNTY OF MONTEREY

Capital Asset Statistics (continued)Last Six Fiscal Years

2005 2006 2007 2008 2009 2010Recreation and Cultural Services

Basketball courts 1 1 1 1 1 1Boats 14 14 14 15 15 15Buildings 159 175 175 178 175 202Heavy Equipment 34 286 317 27 28 34Lakes Acres 10000 10000 10000 10000 10000 10000Land Acres 12155 12155 12155 12750 12750 12750Parks 7 7 7 7 9 9Tennis Courts 1 1 1 1 1 1Vehicles 88 94 85 126 107 130Communication Tower 1 1

EducationBookmobiles 3 3 3 3 3 3Buildings 5 4 5 4 5 6Vehicles 0 15 17 19 17 14

Source:Owned buildings and parcels from General Services "Real Property Specialist Reports".Vehicles & Heavy Equipment from General Services "FleetFocus Equipment Inventory List".

Note:Reporting differences in assets between fiscal years due to updated information sources.GASB 44, implemented in May 2004, requires this schedule to present information for ten years.However, until Monterey County is able to compile a full ten year trend, the title will reflect the actual number of years for which data has been accumulated, as allowed by GASB 44.

(1) information not previously reported(2) new asset completed in FY 0910

For Fiscal Year Ended June 30,

191