Washoe County Comprehensive Annual

Financial Report for the Fiscal Year Ended

June 30, 2005Report to the Board of County

CommissionersPresented by

Katherine L. Garcia, ComptrollerNovember 15, 2005

2

FINANCIAL AUDIT:

Unqualified OpinionFinancial position, changes in financial position presented fairly - Accurate Reliable Meets standards for auditing, certification

GASBS 44 early-implemented Economic Condition Reporting – The Statistical

Section

3

COMPLIANCE AUDIT:

Unqualified opinion

Audit findings – Federal Awards

No material weaknesses

Qualified as a low risk auditee

STATEMENT OF CHANGES IN NET ASSETS

$324

$278

$46

$374

$305

$69

$396

$325

$71

$423

$339

$84

$483

$416

$67$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

Mill

ions

($)

2001 2002 2003 2004 2005

Revenues

Expenses

Changes inNet Assets

GOVERNMENT-WIDE REVENUES BY SOURCE

$54

$44

$34

$75

$117

$90

$50

$35

$77

$122

$87

$55

$34

$81

$139

$84

$62

$35

$90

$152

$110

$64

$44

$101

$164

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

Mil

lion

s ($

)

2001($324)

2002($374)

2003($396)

2004($423)

2005($483)

Ad Valorem Taxes

Consolidated Taxes

Other GeneralRevenue

Charges forServices

Grants, Interest,Contributions

GOVERNMENT-WIDE EXPENSES BY TYPE

$9$13

$90

$40

$126

$9$15

$102

$45

$134

$10$16

$108

$49

$142

$10$18

$108

$55

$148

$10$42

$146

$60

$158

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Mil

lion

s ($

)

2001($278)

2002($305)

2003($325)

2004($339)

2005($416)

Salaries and wages

Employee benefits

Services and supplies

Depreciation

Interest/fiscalcharges

GOVERNMENT-WIDE EXPENSES BY FUNCTION

20817

1519

28

38

44

$89

22815

172332

40

55

$93

25919

1823

37

42

51

$101

279

171724

43

44

55

$103

49

938

2126

49

47

60

$117

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Mill

ion

s ($

)

2001($278)

2002($305)

2003($325)

2004($339)

2005($416)

Public safety

General government

Judicial

Welfare

Culture andrecreationHealth andsanitationPublic works

Interest and fiscalchargesBusiness-typeexpenses

STATEMENT OF NET ASSETS

$883

$65

$322

$246

$91

$114

$119

$701

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Mil

lion

s ($

)

Assets ($1,271)

Liabilities ($337)

Net Assets($934)

Unrestricted

Restricted

Invested in capitalassets, net of debtLong-termliabilitiesLiabilities duewithin one yearNet capital assets

Other assets

Cash andinvestments

NET CAPITAL ASSETS

$92

$43

$137

$129

$18

$29

$98

$73

$156

$126

$20

$44

$112

$79

$112

$128

$21

$363

$122

$80

$109

$169

$41

$362

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Mil

lion

s ($

)

2002 ($448)

2003 ($517)

2004* ($815)

2005 ($883)

Infrastructure

Equipment

Buildings/improvements

Land improvements

Construction in progress

Land

*Restated for infrastructure acquired from June 30, 1980.

OUTSTANDING DEBTDEBTDEBT

$ Millions$ Millions

PRINCIPAL PRINCIPAL OUTSTANDING OUTSTANDING

JULY 1, 2004JULY 1, 2004

DEBTDEBTISSUEDISSUED

PRINCIPAL PRINCIPAL MATURED/ MATURED/

CALLEDCALLED

PRINCIPALPRINCIPALOUTSTANDINGOUTSTANDING

JUNE 30, 2005JUNE 30, 2005

%%OFOF

TOTALTOTAL

General Obligation General Obligation BondsBonds

$ 114.7 $ 13.9 ($10.4) $ 118.2 49

General Obligation- General Obligation- Revenue Backed Revenue Backed BondsBonds

73.6 15.8 (3.1) 86.3 36

Special Assessment Special Assessment BondsBonds

1.7 1.6 (0.5) 2.8 1

Revenue BondsRevenue Bonds 21.6 - (0.7) 20.9 9

Certificates of Certificates of ParticipationParticipation

13.7 - (1.6) 12.1 5

TOTALTOTAL $ 225.3 $ 31.3 ($ 16.3) $ 240.3 100%

11

CONCLUSIONS:

How are we doing?

Did we meet current year budgeted goals?

Can current financial health be maintained?

12

Did We Meet Current Year Budgeted Goals?

Functional expenditures met budget limitations Technology refresh program was maintained

Revenues were adequate to support operations Debt issued for capital outlay, not operations Federal grant revenue increased $9.7 million, to $36.7

million Stabilization Fund retained $3.25 million in cash

13

Did We Meet Current Year Budgeted Goals? (Continued)

Increase in net assets of $67 million All components of net assets are positive Value of capital assets exceed related debt by $701

million

Current assets adequate to meet current obligations Cash ratio – 3.54%

Debt Capacity: Legal debt margin of $878 million Revenues pledged for debt and/or related cash are

adequate to service pledged debt

14

Can Current Financial HealthBe Maintained?

FY 2006 Major revenue sources are projected to increase

Slower pace Ad valorem tax rate remained the same

Tax rate is 32 cents below the allowed rate In the last 10 years, lowest current year collection rate is 98.36%

Base budget requirements for functional expenditures were available

New positions were added for Public Safety and Animal Services

Positions continue to decline on a per capita basis Ongoing investment in capital

15

FINANCIAL POLICIES TO SUSTAIN SERVICE EFFORTS

Debt issued for capital projects, not operationsDebt service can’t exceed the life of the asset acquiredMaintain an adequate General Fund balance, 7% - 9%Designate “one-time” funds for capital projects, not ongoing service needsConstant financial monitoring systems Actual to plan

16

ISSUES ON THE HORIZON

Property tax initiatives AB 489

GASBS 43 and 45 Recognition of postemployment benefits Impact on governments

Are there any questions?