Thurston County, Washington 2009

THURSTON COUNTY COMPREHENSIVE ANNUAL FINANCIAL REPORT

TABLE OF CONTENTS Fiscal Year Ended December 31, 2009

I. INTRODUCTORY SECTION: Page Letter of Transmittal 1 Certificate of Achievement for Excellence in Financial Reporting 8 Organizational Chart 9 Elected Officials 10

II. FINANCIAL SECTION: Independent Auditor’s Opinion 11 Management Discussion and Analysis 13 Basic Financial Statements: Government Wide Financial Statements Statement of Net Assets 34 Statement of Activities 36 Fund Financial Statements: Balance Sheet – Governmental Funds 39 Reconciliation of the Balance Sheet of Governmental Funds To The Statement of Net Assets 41 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 42 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 44 General Fund Statement of Revenues, Expenditures, and Changes In Fund Balance – Budget (GAAP Basis) and Actual 45 Statement of Revenue, Expenditures, and Changes in Fund Balance – Budget (GAAP Basis) and Actual – Other Major Funds 50 Statement of Net Assets – Proprietary Funds 57 Reconciliation of the Statement of Net Assets of Proprietary Funds to the Statement of Net Assets 59 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds 60

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Reconciliation of the Statement of Revenues, Expenses, and Changes in Fund Net Assets of Proprietary Funds to the Statement of Activities 61 Statement of Cash Flows – Proprietary Funds 62 Statement of Fiduciary Net Assets – Fiduciary Funds 64 Statement of Changes in Fiduciary Net Assets – Fiduciary Funds 65 Notes to the Financial Statements 67 Required Supplementary Information: Combining and Individual Fund Statements and Schedules: Non Major Governmental Funds: Combining Balance Sheet Nonmajor Governmental Funds 117 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds 118 Description of Nonmajor Special Revenue Funds 119 Combining Balance Sheet Nonmajor Special Revenue Funds 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds 129 Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget (GAAP Basis) and Actual Nonmajor Special Revenue Funds 136 Non Major Debt Service Funds: Description of Nonmajor Debt Service Funds 167 Combining Balance Sheet Nonmajor Debt Service Funds 168 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Debt Service Funds 169 Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget (GAAP Basis) and Actual Nonmajor Debt Service Funds 170 Non Major Capital Project Funds: Description of Nonmajor Capital Project Funds 177 Combining Balance Sheet Nonmajor Capital Project Funds 178 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Project Funds 179 Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget (GAAP Basis) and Actual Nonmajor Capital Project Funds 180 Non Major Enterprise Funds: Description of Nonmajor Enterprise Funds 183 Combining Statement of Net Assets Nonmajor Enterprise Funds 184 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds 186

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Combining Statement of Cash Flows Nonmajor Enterprise Funds 188 Internal Service Funds: Description of Internal Service Funds 193 Combining Statement of Net Assets Internal Service Funds 194 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds 196 Combining Statement of Cash Flows Internal Service Funds 198 Fiduciary Funds: Description of Fiduciary Funds 203 Combining Statement of Fiduciary Net Assets Agency Funds 204 Combining Statement of Changes in Assets and Liabilities Agency Funds 205 Grant Schedules: Schedule of Expenditures of Federal Awards 207 Washington State BARS Schedule 16 Schedule of Expenditures of State and Local Awards 216 Notes to the Schedule of Expenditures of Federal, State, And Local Awards 220 III. STATISTICAL SECTION Statistical Section Overview 221 Net Assets by Category 222 Changes in Net Assets 224 Fund Balances, Governmental funds 228 Changes in Fund Balances, Governmental Funds 230 Property Tax Revenue Base Information 232 Revenue Rate Information Property Tax Levy Rate - Direct and Overlapping 233 Principal Tax Payer Information 234 Property Tax Levies and Collections Information 235 Legal Debt Margin Information 236 Total Outstanding Debt Information Ratios of Outstanding Debt by Type 237 Ratio of Net General Obligation Bonded Debt to Assessed Value 238 Computation of Direct and Overlapping Bonded Debt General Obligation Bonds 239 Demographic and Economic Information 240 Principal Employers 241 Government Employment Information Authorized Thurston County Positions by Function 242 Operating Indicators by Function/Program 244 Capital Asset Information 248

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KIM WYMAN AUDITOR

June 30, 2010

To the Honorable Board of Commissioners and Citizens of Thurston County:

In accordance with provisions of Chapter 36.22 of the Revised Code of Washington, I am pleased to submit the Comprehensive Annual Financial Report (CAFR) of Thurston County for the fiscal year ended December 31, 2009. The CAFR is prepared in accordance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by independent auditors from the Office of the Washington State Auditor.

The CAFR is developed to provide meaningful financial information to legislative bodies, creditors, investors, bond counsels, students of public finance, political researchers, and the public we serve. The CAFR consists of management’s representations concerning the finances of the County. A full discussion of these statements is included in the Management Discussion and Analysis (MD&A) section and the Notes to Financial Statements.

Thurston County has prepared this annual report in compliance with Governmental Accounting Standards Board Statement (GASB) #34, with the inclusion of government-wide statements that are based on full accrual accounting and include capital assets and long term debt. Fiscal year 2009 also includes an actuarial-based accrued liability for post employment benefits in compliance with GASB 45.

Responsibility for the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the management of Thurston County. Thurston County has established a comprehensive internal control framework to provide a reasonable basis for making these representations. Management of the County has established internal controls that are designed to both protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the presentation of the financial statements in conformity with GAAP. Because the cost of internal controls should not exceed anticipated benefits, the objective is to provide reasonable assurance that the financial statements are free of any material misstatements.

The Office of the Washington State Auditor conducts an annual audit of the financial statements of Thurston County as required by law. For the fiscal year ending December 31, 2009, the auditor issued an unqualified (“clean”) opinion on Thurston County’s financial statements. The Independent Auditor’s Report is located at the front of the financial section of this report.

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Profile of the County

Thurston County, Washington is located at the southern end of Puget Sound in the beautiful Pacific Northwest. Majestic Mount Rainier and the rugged Cascade Mountains are nearby to the east, while Washington's Pacific Ocean coast is just an hour's drive to the west. Thurston County is 60 miles south of Seattle, Washington and is 100 miles north of Portland, Oregon. Thurston County is home to almost 250,000 residents. Nearly 155,000 residents live in the more urban north county areas in and around the cities of Lacey, Olympia, and Tumwater. This urban area includes both incorporated and unincorporated land. The rest live in and around the smaller towns of Bucoda, Tenino, Rainier, and Yelm and in the more rural areas of Thurston County. Thurston County is the sixth most populated county among Washington State's 39 counties and is among the fastest growing counties in the Pacific Northwest.

Thurston County was created on January 12, 1852, by the Oregon Territorial Legislature and operates under the laws of the State of Washington applicable to county governments. The county is managed by a three member board of commissioners and provides a full range of municipal services, including: public safety, construction and maintenance of roads and bridges, water and waste management, public health and social services, cultural and recreational facilities and activities, planning and zoning services, job training, and general administrative services. The financial statements present Thurston County as the primary government as required by generally accepted accounting principles.

Thurston County is a statute county, which means the organization of the county is prescribed by state statue. Locally elected officials include the county assessor, auditor, clerk, prosecuting attorney, sheriff, treasurer, coroner, eight superior court judges, three district court judges and the three-member board of county commissioners. These elected officials govern the county and establish policies on the basis of the local community’s needs and preferences. The board of county commissioners acts as the county’s legislative body and appoints a County Manager who acts as the chief administrative officer of the county and oversees sixteen departments. By virtue of the county’s authority over their operations, this annual financial report includes financial data for all the funds and account groups of the county, including activities considered to meet the entity definition criteria established in Governmental Accounting Standards Board Statement Numbers 14, 34 and 39.

The County’s annual budget serves as the foundation for financial planning and control. Washington State law (RCW 36.40) establishes the general requirements of Thurston County’s budget process. Budgets are prepared and maintained by establishing detailed line items. Office and department heads have the authority to move budget authorizations between objects within their funds, but the County Manager is the only position authorized to transfer budget authority between offices and departments within a fund. On-line access reports are available for all elected officials and department managers, comparing current budget appropriation levels to actual revenues and expenditures by detailed line item. The budget status of offices and departments are reviewed on a quarterly basis. If there is a need for budget modifications, requests are submitted to the County Auditor’s Office, and then on to the County Manager and Board of County Commission (BoCC). Only the BoCC can approve budget increases. The Board of County Commissioners is required to adopt a final budget by no later than the close of the fiscal year. After adoption, the budget is systematically monitored on the fund level for special revenue and capital project funds and on a department level for the general fund. The acquisition of capital items is approved on an item by item basis in accordance with a long-term capital acquisition plan.

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Local Economy

Economic conditions play a significant role in the financial stability of Thurston County. The economy is dependent on many factors, including (a) population and demographic trends; (b) employment and housing factors; (c) per capita income and inflation; and (d) retail sales. From 1990 to 2000, the economy of Thurston County increased steadily, but not at the same rate as the prior two decades. The economy took a downturn in 2002, fueled first by the cutbacks in Boeing and then by the aftermath of the tragic events of September 11, 2001. In 2003 the economy in Thurston County began a steady recovery, peaking in 2008. An emphasis was placed on business recruitment and retention and the creation of quality jobs in technology-based businesses, light manufacturing, educational services, and real estate services. The year 2007 was a good economic year as housing starts were up and employment remained stable, then the economy started on a downward spin. The housing market came to a screeching halt, foreclosures increased and credit tightened. The result was a rise in unemployment and the beginning of major budget deficits at both the state and county level. Statistics and information that follows highlight the changes in Thurston County’s economic conditions for 2007 through 2009 and include a brief outlook for 2010 and beyond.

The population of Thurston County has grown from 204,300 in 2000 to 245,300 in 2008. This is an increase of 41,000 residents and an average growth rate of 2.3 percent per year. Almost 80 percent of the population increase has been due to the continued migration of people into the county. Thurston County continues to be a desirable place to live, and has been the third fastest growing of our state’s 39 counties over the past decade. In 2009 the county’s population continued to increase slightly from 245,300 to 249,800. This is a growth rate from the previous year of 1.8 percent.

In 2008 the seasonally adjusted number of full-time and part-time jobs in Thurston County was 136,087 (the latest full statistical year), up slightly by 3,084 full and part-time jobs or 2.3 percent from 133,003 in 2007. For the prior period 2006 to 2007, there was an increase of 3,759 full and part-time jobs, or 3%. The professional and technical industry and the accommodations and food industry showed the greatest growth rate in 2008, increasing by 603 employees or 9.5 percent and by 601 employees or 8.3 percent respectively. Finance and insurance showed the next greatest growth, increasing from 3,885 jobs to 4,345, an increase of 460 jobs or 11.4 percent. This was followed by increases of 372 jobs in the health care and social assistance industry and 281 jobs in the arts, entertainment and recreation industry. Within the government sector, state government employment increased by 701 jobs or 2.9 percent, while local government employment increased by just 33 jobs or 0.3 percent. While professional/technical and the accommodations/food industries were the fastest growing job sectors in Thurston County in 2008, the construction industry started a downward trend with a loss of 183 jobs and forestry and fishing reduced employment for the second consecutive year with a loss of 242 jobs.

New housing starts increased from 2,422 in 2004 to a high of 3,143 in 2006, reducing slightly to 2,714 in 2007. In 2008, the bottom started to fall out, and Thurston County only had 1,443 new housing starts. Fifty two percent of these permits were located within Thurston County cities, 24 percent in the urban growth boundaries, and 24 percent in the unincorporated areas of the county. In 2000 the average sales price of a home was $160,606. In 2004 it was $209,165, and in 2005 the average sales price rose sharply to $252,452. Sales prices continued to increase in 2006 to an average of $282,585 and in 2007 to an average of $298,290. This is an increase of 3 percent compared to 12 percent in the previous year. In 2008, the impact of the downturn in economy reflected in housing sales, and the average price of a home in Thurston County decreased to $283,933, a drop of almost 5 percent.

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Housing affordability in Thurston County continues to be relatively good compared to the statewide average. In the first quarter of 2009, the index was 129.2 vs. 125.5 statewide (an index of 100.0 is considered a good balance between monthly income and housing costs). The affordability index rebounded from the downward trend of the two prior years which were 111.6 and 110.1 respectively. The higher the index is, the more affordable the housing. For first time homebuyers, the index was 76.6 vs. 65.0 in 2008. An increase in both measures reflects more accessibility to affordable housing.

In 2007 (the last year of complete data), the estimated median household income for Thurston County was $59,547, a healthy increase of 3 percent from an estimate of $57,667 in 2006. Projections for 2008 show a virtual standstill to $59,885, or less than 0.6 percent. Compared with adjacent counties, Thurston County continues to experience a higher median household income than adjacent Lewis, Mason, and Grays Harbor counties, and is now also higher than Pierce County. Thurston County is however projected to be $125 lower than the overall median household income average for Washington State in 2007 which was $60,010. This is a reversal from the prior year when Thurston County was projected to exceed the average median household income in the state by approximately $1,000.

Real personal income for Thurston County, which is measured by dividing total personal income by population and adjusted for inflation, has increased from $31,333 to $39,988 (not adjusted for inflation) during the ten year period from 1999 to 2008. This is a per capita increase of $8,655, using 2008 dollars. In 2008 (the latest statistical year), Thurston County’s estimated per capita income increased by $503. This compares with an overall statewide increase from 2007 to 2008 of $828.

Another indication of economic conditions, especially as it applies to local government, is “taxable retail sales”. This indicator measures purchasing and consumption activity in the county. In the last reported year, from 2007 to 2008, taxable retail sales decreased for the first time in over a decade. The County as a whole experienced a 5 percent decrease as the effects of the national recession hit the local economy. This followed three very good years of growth from 2005 to 2007, although in a downward trend, of 16 percent, 10 percent and 6 percent respectively. The “taxable retail sales” for the county has increased by an average of 6.3 percent annually from 1990 to 2000, and by an average of 5.8 percent over the eight year period, 2000 to 2008. Expectations are that this average will continue to decline in 2009 and 2010.

Thurston Regional Planning Council (TRPC) predicts that the population will increase from 249,800 in 2009 to 255,000 in the year 2010 and by 2030 will be at 373,000, an average increase of 2.3 percent over this twenty-one year period. The Thurston County economy and employment growth is also expected to grow over this 20 plus year period, but not at the same rate as recent years. In fact in the latter quarters of 2009 and in 2010, both revenues and employment are expected to decrease significantly as the national, state, and local economy experiences a major recession. Thurston Regional Planning Council projects a long range increase in employment for Thurston County from 121,500 persons in 2005 to 137,200 in 2010 to 184,500 by the year 2030. This is an increase of 63,000 jobs or 2 percent per year over the twenty-five year period. The number of local government jobs is expected to increase at a rate of approximately 2.8 percent per year, with state government continuing at a much slower growth rate of 1 percent. The service industry is expected to be the most dominant employment base, with an expected 62,000 jobs in 2030 compared with 37,300 in 2005.

Thurston County’s economic vitality has traditionally come from being the state capital. Growth in state government has slowed over the past decade, with only 1,200 jobs added to the local economy during the past ten-year period. The adopted budget for the 2007-09 Biennium was estimated to add over 4,000 new government jobs, a third of which would be in Thurston County. With the downturn in the economy and significant projected budget deficits, a hiring freeze was imposed on both state and local governments in the last quarter of 2008, and re-instated in the 2009 legislative session. Expectations are that there will be decreases in both state and local county employment in 2009 and in 2010 of 2 to 4 percent.

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State government, with its substantial employment base, has significant ripple effects in the consumer business trade and services sectors. All of which experienced reductions in employment beginning in the last quarter of 2008, and continuing throughout 2009. With new housing starts coming to a screeching halt, the construction industry experienced a rise in unemployment, as did title companies, mortgage centers, and permit centers, including Thurston County’s Land Use and Permitting (formerly Development Services). Unemployment in Thurston County exceeded 8 percent for the first time in two decades. Even investments by St. Peter Hospital and Great Wolf Lodge could not temper the downturn and corresponding loss in local revenues.

Local governments in Thurston County, including the county, are also experiencing the challenges of reduced revenues and budget cutbacks. The combination of the reduction of statewide revenue sources such as sales and real estate excise taxes, limits on property tax increases, and a rapid slow down in the housing market caused many local cities and the county to tighten their budgetary positions in 2008 and again in 2009 as Washington State and the nation entered a major recession.

The long-term outlook will depend on a combination of the timeliness and strength in national, state, and local economic recovery, and the availability of dedicated revenue sources to support new and ongoing program growth opportunities. The recent passage of legislation lifting the restriction on non-supplanting and the likelihood of continued state funding for public and mental health programs will help in supporting these important county programs. However the significant cutbacks in state and local expenditures for public safety, health care, and general government services in 2008 and 2009 will most likely carry over into 2010 and 2011. One of the biggest challenges will be the ability of local governments, including Thurston County, to meet public safety and health demands with limited resources for the next few years while retaining an adequate reserve base.

Long-Term Capital Investments

The County’s main capital investment for the next several years is the construction of a new Accountability and Restitution Center (ARC) detention facility. The ARC distinguishes itself from a conventional detention center in that its focus is on the assessment, intervention and monitoring of inmates. Since its conception in 2005, the planning for the ARC has experienced several revisions. Construction of the first phase, which will add 256 beds, is already underway and is being financed up to $40 million by Detention Facility Sales Tax. Phase one of the facility is planned to be completed by late summer or early fall of 2010. Once construction is completed, the County is considering several options including moving existing jail populations into the ARC or leasing out the facility to the Department of Corrections. The facility will be operating within current General Fund budgets until the economy recovers or new revenues are realized. The full operating costs are estimated at $6 million annually.

Major Initiative and Future Outlook

For the third consecutive year, the major initiative facing Thurston County is directly related to its General Fund budget. Under the direction of the Commissioners and County Manager, Thurston County took early action in 2008 to address forecasted shortfalls in revenue. This early action resulted in General Fund savings of approximately $4 million. With property taxes, which is the largest single source of revenues to the General Fund, capped at 1% growth on all properties except new construction, and new building at a stand still, the General Fund budget challenges were heightened in 2009.

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As the full impact of the recession hit, early 2009 revenue forecasts showed even further decreases in sales taxes, real estate excise taxes and licensing and recording fees. The original adopted 2009 budget called for General Fund revenues of $75.8 million, a decrease of $6 million from the 2008 final revenue budget. General Fund expenditures for 2009 were initially budgeted at $76.0 million, a reduction of approximately $4.6 million from the 2008 budget. In the last half of 2009, the County Commissioners called for a major reorganization and further restrictions in budgeted expenditures. In total, 98 positions were held vacant or eliminated. At the conclusion of Fiscal Year 2009, the General Fund revenue budget was reduced to $75.3 million and the General Fund expenditure budget increased to $76.8 million. Actual General Fund revenues dropped to $74.3 million and General Fund expenditures to $73.5 million.

While it was expected that the passing of Washington State’s new Destination Based Sales Tax Law would result in net sales tax revenue increases to Thurston County of several million dollars at some point in time, actual revenue gains for the initial six month period July to December 2008 were very small. In 2009 projected millions turned into mere thousands. As a result, the County modified its financial revenue plan for Fiscal Year 2009 and projected very nominal growth in sales tax revenues in 2010 and 2011. The Thurston County Board of County Commissioners did approve a 1/10th of one percent Treatment Sales Tax to help preserve public safety and public health programs in mental health and chemical dependency. The new revenue is expected to bring in approximately $1 million in the last half of Fiscal Year 2009 and $2 million in 2010.

The preparation of the 2010 Thurston County budget was based on ten long-term goals and an expected slow but deliberate economic recovery. No cost of living adjustments were granted and offices and departments were again asked to absorb inflationary costs. The reorganization of county commissioner departments was fully implemented in January 2010 and resulted in a reduction from 16 departments to 8 The adopted 2010 General Fund budget reflects $75.8 million in revenues and $74.2 million in expenditures, and calls for another decrease of 49 positions.

While cutbacks in services and staff will continue to be very difficult, Thurston County has effectively used the Budget Team and Financial Management Committee to develop a series of sound principles for meeting its statutory responsibilities in the most cost effective way possible. The combination of starting reduction opportunities early in 2008, the hiring of a highly capable Budget and Fiscal Manager, and the recent reorganization to reduce overhead will be helpful in responding to the recession and rebuilding a strong County government. Expectations are that the local economy has bottomed out, and that Thurston County’s recovery may well be stronger and faster than that of the State as a whole.

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Awards and Acknowledgements

The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Thurston County for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2008. This was the third consecutive year for Thurston County under the new GASB 34 standards. In order to be awarded a Certificate of Achievement, the County has to publish an easily readable and efficiently organized CAFR that satisfies both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and are submitting it to the GFOA to determine eligibility for a 2009 certificate.

The professional and dedicated staff of the financial services division of the County Auditor’s Office prepared this report. In addition, the report could not be accomplished without the valuable assistance of the County Treasurer’s Office and accounting personnel of other County departments. I appreciate their efforts, and appreciate the approach of the Board of County Commissioners in their sound conduct of the financial affairs of the County. We also recognize the professional efforts of the State Auditor’s Office in their audit and the direction they provide us throughout the year.

Respectfully Submitted,

Kim Wyman Thurston County Auditor

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THURSTON COUNTY ORGANIZATION CHART

Assessor Prosecuting Attorney

Auditor

Sheriff

Clerk

Treasurer Coroner

Citizens

District Court SuperiorSuperior Court Court

District Court Juvenile Court Board of County Probation and Probation Commissioners

Communications County Manager

Budget Office Community Relations Office

Planning Human Resources Central Services Office Of Assigned Counsel Strategic Planning Personnel Facility Maintenance Long Range Planning Payroll & Benefits Mail Services & Records Capital Facilities Plan Risk Management Purchasing Econ Development Labor Relations Information Technology Regional Sustainability Training Equipment Rental Board of Equalization Public Health & Social Resource Stewardship Public Works Emergency Services Services

Public Health Permitting Services Roads Emergency Management Social Services Water Resources Solid Waste Medic One Environmental Health Noxious Weeds Utilities Housing & Community Fair & Recreation Parks & Trails Renewal Extension Services Engineering Workforce Consortium Capital Projects Veterans Assistance

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Elected Officials

December 31, 2009

Thurston County Board of Commissioners

Honorable Cathy Wolfe, District One Honorable Sandra Romero, District Two Honorable Karen Valenzuela, District Three

Honorable Patricia Costello, Assessor

Honorable Kim Wyman, Auditor

Honorable Betty J. Gould, Clerk

Honorable Gary Warnock, Coroner

Honorable Edward G. Holm, Prosecuting Attorney

Honorable Dan Kimball, Sheriff

Honorable Robin Hunt, Treasurer

District Court Judges Honorable Susan A. Dubuisson Honorable M. Brett Buckley Honorable Samuel G. Meyer

Superior Court Judges Honorable Paula Casey Honorable Wm. Thomas McPhee Honorable Richard D. Hicks Honorable Christine A. Pomeroy Honorable Gary R. Tabor Honorable Chris Wickham Honorable Anne Hirsch Honorable Carol Murphy

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MANAGEMENT DISCUSSION AND ANALYSIS

Thurston County’s discussion and analysis provides a narrative overview and analysis of the County’s financial activities for the year ended December 31, 2009. We encourage readers to consider the information presented here in conjunction with additional information in the letter of transmittal, which can be found preceding this narrative, and with the County’s financial statements and notes to the financial statements, which follow this discussion.

FINANCIAL HIGHLIGHTS

• As a result of prudent planning and decisive action on the part of management, the financial condition of the County remained relatively stable during 2009 despite the continued nationwide economic downturn.

• Thurston County’s total assets (governmental and business-type, combined) exceeded its total liabilities at December 31, 2009 by $529.6 million, compared to $524.8 million in 2008. This represents a 0.9% increase. Details of factors contributing to this increase are discussed later within this discussion and analysis.

• Total net assets of the County (governmental and business-type, combined) are comprised of the following:

1. Capital assets, net of related debt, of $394.2 million, include property, infrastructure, and equipment, net of accumulated depreciation, reduced for outstanding debt related to the purchase or construction of capital assets. 2. Restricted net assets of $116.3 million represent the portion restricted by constraints imposed from outside the County such as debt covenants, grants, and laws. 3. Unrestricted net assets of $19.1 million represent the portion available to maintain the County’s continuing obligations to citizens and creditors.

• Thurston County reported a positive change in governmental net assets as of December 31, 2009 of $2.3 million, compared to a negative $1.4 at the end of 2008. This represents a 264.3% increase. Details of factors contributing to this increase are discussed later within this discussion and analysis.

• Unreserved/undesignated fund balance for the General Fund was $8.6 million at December 31, 2009 compared to $7.8 million at the end of 2008. This represents a 10.3% increase between the two years and represents 12.3% of total 2009 General Fund expenditures. Details of factors contributing to this increase are discussed later within this discussion and analysis.

• Due to a conscience effort on the part of directors and managers of General Fund offices/departments, actual 2009 expenditures were $3.3 million, or 4.5%, under the final 2009 adopted budget level.

• During 2009, Thurston County sold General Obligation Bonds of $42.8 million to finance several construction projects. This caused the County’s total long term debt at December 31, 2009 to increase to $90.1 million with a remaining capacity for non-voted debt of $348.8 million. Details of factors contributing to this increase are discussed later within this discussion and analysis.

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OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to Thurston County’s basic financial statements. Thurston County’s basic financial statements comprise three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of Thurston County’s finances in a manner similar to a private sector business. Thurston County reports two Government-wide financial statements: the statement of net assets and the statement of activities.

The statement of net assets presents information on all of Thurston 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 government’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 timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods, such as revenues related to uncollected taxes and expenses related to earned but unused vacation leave and sick leave. This statement separates program income (revenue generated by specific programs through charges for services, grants, and contributions) from general revenue (revenue provided by taxes and other sources not tied to a particular program). By separating program revenue from general revenue, users can identify the extent to which each program relies on taxes for funding.

The government-wide financial statements distinguish functions of Thurston 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 include services provided to the public such as law enforcement and public safety; road construction and maintenance; recreation and open space preservation; employment and training; public health and social services; and general administration. Business-type activities of Thurston County include solid waste, land use and permitting, and sewer and water management. Both of the government-wide financial statements have separate columns for two different types of County programs or activities.

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. Thurston 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 one of three categories: governmental, proprietary, or fiduciary.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike 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 year. Such information is useful in evaluating a government’s near-term financing requirements in comparison to available near-term resources.

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Because the focus of governmental fund financial statements is narrower than that of government-wide financial statements, it is useful to compare information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This gives readers a better understanding of the long-term impact of the government’s financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances present separate columns for financial data for the following funds: General, Debt Holding – 2009, Detention Facility Sales Tax Holding, Jail Capital Projects, Real Estate Excise Tax, Roads, Medic One, Public Health and Social Services, and Other Governmental, which are considered major funds for financial reporting purposes. The Other Governmental Fund aggregates data from all of the remaining non-major governmental funds into a single, combined presentation. The governmental fund financial statements can be found immediately following the government-wide financial statements. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements, outside of the basic financial statements, following the notes to the financial statements.

The County maintains budgetary controls with an annual appropriated budget to ensure compliance with legal provisions. Budgets for governmental funds are established in accordance with state law, and are adopted on a fund level, except for the General Fund, which is adopted on a department level. A budgetary comparison of revenues, expenditures, and changes in fund balances is provided for the General Fund, all special revenue funds, debt service funds, and all capital project funds. Major fund budgetary variance statements are included with the basic financial statements, while non-major fund budget variance schedules follow the combining fund statements. Budgetary variances for the General fund are discussed in more detail later in this section.

Proprietary funds are used to account for a government’s business type activities, where all or part of the costs of activities are supported by fees and charges that are paid directly by those who benefit from the activities. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail, since both apply the accrual basis of accounting. Proprietary fund statements follow the governmental fund statements in this report. The County maintains two types of proprietary funds:

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Enterprise funds account for the County’s solid waste, land use and permitting, utilities planning and development, septic assistance community loan, storm water, and waste water programs. The Solid Waste and Grand Mound funds are both considered major funds for financial reporting purposes. The County reports six non-major enterprise funds.

Internal service funds are used to report activities that provide services to the County’s other programs and activities on a cost reimbursement basis. The County internal service funds include: risk management, engineering services, benefits and utilities administration, central services (facilities maintenance and construction and information technology support) and equipment rental and replacement. The revenues and expenses of internal service funds that are duplicated in other funds through allocations are eliminated in the government-wide statements, with the remaining balances included in the governmental activities column. All internal service funds are aggregated in a single column in the basic proprietary fund financial statements.

15 Thurston County, Washington 2009

Fiduciary funds are used to account for resources that are held by a government as a trustee or agent for parties outside of the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support Thurston County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The County has three types of fiduciary funds: 1) Investment Trust Funds which report the portion of the County investments that belong to other jurisdictions, 2) Private Purpose Trust Funds which report trust arrangements where the principal and interest benefit those outside of the County, and 3) Agency Funds which are clearing accounts for assets held by Thurston County in its role as custodian until the funds are allocated to the private parties, organizations, or government agencies to which they belong. The basic fiduciary fund financial statements can be found following the proprietary fund financial statements.

Notes to the Financial Statements

The notes 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 the financial statements can be found immediately following the basic financial statements in this report.

Other Supplementary Information

The section on grant schedules report a summary of amounts received and spent on federal and state awards. The statistical section presents a summary of County financial, revenue, debt, economic, demographic and performance information over the past ten years.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Analysis of Net Assets

Net Assets may serve over time as a useful indicator of a government’s financial position. As indicated in the condensed financial information below, which was derived from the government-wide Statement of Net Assets, the County’s combined net assets (governmental and business-type activities) were $529.6 million at the end of 2009. This reflects a net increase of 0.9%, or $4.8 million from 2008. As such, this increase reflects the County’s continuing ability to meet its ongoing obligations which includes its debt service requirements.

Of the County’s total net assets $394.2 million, or 74.4%, is invested in capital assets, less outstanding debt used to acquire those assets. These assets provide services to County citizens and are not available for future spending purposes. However, resources needed to repay this debt must be provided by other sources since capital assets cannot be readily liquidated to pay these liabilities. Of the County’s total net assets $116.3 million or 22% are subject to external spending restrictions. External restrictions include those provided by state law or by contractual agreement with outside entities, primarily state and federal agencies. The remaining $19.1 million, or 3.6%, ($37.1 million, or 7.1% in 2008) is unrestricted and represents the amount that may be used to meet the County’s ongoing general purpose obligations.

16 Thurston County, Washington 2009

Thurston County reported $671.2 million of total assets as of December 31, 2009, compared to $628.5 million for 2008. This represents an increase of $42.7 million, or 6.8%. For 2009, $473.2 million, or 70.5%, was reported as capital assets, which includes infrastructure and construction in progress. This represents an increase over 2008 of $32 million, or 7.3%. The majority of the increase was due to construction activity related to the County’s new Accountability and Restitution Center (ARC), a nonconventional detention center for low risk offenders. The remaining assets include approximately $136.6 million or 20.3% in cash and pooled investments (including restricted), and $32.6 million or 4.9% in current receivables, inventory, prepayments and long term assets.

Thurston County’s total liabilities were $141.6 million at the end of 2009 compared to $103.6 million in 2008. Noncurrent liabilities were $120.9 million as of December 31, 2009, up $42.7 million compared to the end of 2008. This increase was due to the sale of General Obligation Bonds of $42.8 million in April 2009. General obligation bonds are 63.6% of total liabilities and accumulated landfill closure costs are 13.6% of total liabilities. The other significant liability is Other Post Employment Benefits (OPEB) payable of $8 million, or 5.6% of total liabilities. Current liabilities at the end of 2009 were $20.7 million compared to $25.4 million at this point last year. This decrease ($4.7 million and 18.5%) was primarily due to the county delaying the issuance of its $42.8 million in general obligation bonds to finance the construction the ARC. The bond sale was delayed until April 2009 to provide sufficient time to review and adjust the project scope and size of the bond issuance due to budget shortfalls in 2008. The delay in financing resulted in $5.3 million expenditure liability in the Jail Capital Project Fund at the end of 2008. This liability was satisfied during 2009. Further details on this bond offering are provided later in this analysis and in the notes to the financial statements.

The condensed financial information that follows is derived from the government-wide Statement of Net Assets and reflects how the County’s net assets in 2009 compare with 2008:

Thurston County Net Assets

Governmental Governmental Busine ss-type Busine ss-type Activities Activities Activities Activities Total Account 2009 2008 2009 2008 2009 2008

Assets $ 164,060,698 $ 152,865,905 $ 33,983,011 $ 34,376,543 $ 198,043,709 $ 187,242,448 Capital Assets 435,497,051 403,691,980 37,695,440 37,538,388 473,192,491 441,230,368 Total Assets 599,557,749 556,557,885 71,678,451 71,914,931 671,236,200 628,472,816

Current Liabilities 18,477,474 21,462,551 2,237,481 3,949,310 20,714,955 25,411,861 Long Term Liabilities 91,297,210 47,566,067 29,618,237 30,647,060 120,915,447 78,213,127 Total Liabilities 109,774,684 69,028,618 31,855,718 34,596,370 141,630,402 103,624,988

Net Assets: Invested in Capital Assets, Net of Related Debt 367,485,013 357,549,686 26,673,569 26,105,070 394,158,582 383,654,756 Restricted 106,941,800 98,672,400 9,423,124 5,403,545 116,364,924 104,075,945 Unrestricted 15,356,252 31,307,181 3,726,040 5,809,946 19,082,292 37,117,127

Total Net Assets $ 489,783,065 $ 487,529,267 $ 39,822,733 $ 37,318,561 $ 529,605,798 $ 524,847,828

17 Thurston County, Washington 2009

Governmental activities – Despite a lot of activity taking place during 2009, the total net assets for governmental activities realized a modest change compared to 2008, increasing by $2.3 million. Of the County’s $489.8 million in total net assets, $367.5 million was invested in capital assets less any related outstanding debt used to acquire those assets. This represents an increase of $9.9 million from 2008. The main reason was the continued increase in construction activity described earlier. For 2009, $107 million is recorded as restricted for various purposes in almost every major service area in the County. This represents an increase of $8.3 million from the prior year and is mostly associated with the drawdown of funds related to the aforementioned bond sale. The final category of net assets, unrestricted, is $15.4 million in 2009, a decrease of $15.9 million or 50.8% over 2008. These funds are available for future spending.

Business-type activities – Business-type activities saw an increase of $2.5 million in total net assets in 2009 compared to 2008. Of the 2009 total net assets of $39.8 million, $26.7 million is invested in capital assets, net of related debt. Business-type activities use their capital assets to provide services to customers. Consequently, these assets are not available for future spending. For restricted net assets, the amount restricted for debt service increased by $4 million due to an internal reporting change. In 2009, $3.7 million in unrestricted net assets is available for future spending in business-type activities compared to $5.8 million in 2008. These funds are available for future spending by the funds.

18 Thurston County, Washington 2009

Analysis of the Statement of Activities

The following chart presents key elements in the Statement of Activities. In 2009, total County revenues (including net general revenues and adjustments) remained very consistent in 2009 compared to 2008, increasing by $0.8 million ($210.1 to $209.3 respectively). Likewise, total County expenses decreased by $1.9 million, or 0.9%, from 2009 to 2008 ($205.3 to $207.2 respectively). This overall decrease was mainly due to budget reductions taken by county offices and departments during 2009.

Thurston County's Statement of Activities

Governmental Business-Type Total Primary Activities Activities Government Account 2009 2008 2009 2008 2009 2008

Program Revenues: Charges for Services $ 24,715,365 $ 20,159,377 $ 23,002,948 $ 23,338,201 $ 47,718,313 $ 43,497,578 Operating Grants & Contrib. 45,501,657 48,779,433 1,063,007 876,042 46,564,664 49,655,475 Capital Grants & Contrib. 9,318,083 6,667,935 114,696 1,994,457 9,432,779 8,662,392 General Revenues: Taxes 98,470,757 97,420,544 - - 98,470,757 97,420,544 Interest and Invest. Earnings 6,457,964 8,209,189 1,029,658 1,765,132 7,487,622 9,974,321 Other General Revenues 381,641 34,972 22,005 18,112 403,646 53,084 Total Revenues 184,845,467 181,271,450 25,232,314 27,991,944 210,077,781 209,263,394 Program Expenses: (Net) General Government 8,569,812 10,679,357 - - 8,569,812 10,679,357 Culture and Recreation 3,780,250 3,644,750 - - 3,780,250 3,644,750 Economic Environment 15,850,367 13,173,730 - - 15,850,367 13,173,730 Health and Human Services 47,548,566 48,541,104 - - 47,548,566 48,541,104 Utilities and Environment 1,316,016 1,846,225 - - 1,316,016 1,846,225 Public Safety 70,615,888 70,421,095 - - 70,615,888 70,421,095 Transportation 28,651,349 27,925,015 - - 28,651,349 27,925,015 Interest 3,459,983 2,095,802 - - 3,459,983 2,095,802 Solid Waste - - 15,991,345 17,273,843 15,991,345 17,273,843 Water - - 894,297 817,856 894,297 817,856 Sew er - - 1,706,458 1,682,982 1,706,458 1,682,982 Stormw ater - - 2,459,443 2,738,111 2,459,443 2,738,111 Land Use & Permitting - - 4,476,037 6,406,427 4,476,037 6,406,427 Total Expenses 179,792,231 178,327,078 25,527,580 28,919,219 205,319,811 207,246,297 Excess (Deficiency) of Revenues over (under) Expenses before Transfers 5,053,236 2,944,372 (295,266) (927,275) 4,757,970 2,017,097 Transfers (2,799,438) (4,308,110) 2,799,438 4,308,110 - - Change in Net Assets 2,253,798 (1,363,738) 2,504,172 3,380,835 4,757,970 2,017,097

Ending Net Assets January 1 487,529,267 491,543,019 37,318,561 33,937,726 524,847,828 525,480,745 Prior Period Adjustment - (2,650,014) - - - (2,650,014) Restated Net Assets January1 487,529,267 488,893,005 37,318,561 33,937,726 524,847,828 522,830,731 Ending Net Assets $ 489,783,065 $ 487,529,267 $ 39,822,733 $ 37,318,561 $ 529,605,798 $ 524,847,828

19 Thurston County, Washington 2009

In 2009, Governmental activities provided $184.8 million in revenues (88% of the total), while business-type activities provided $25.2 million (12% of the total). The 2009 ratio of total revenues between governmental and business-type is consistent with 2008 with just a 1.4% shift from business-type to governmental activities. The two largest governmental revenues are taxes at $98.5 million, or 51.7%, of total governmental revenues and operating grants and contributions at $45.5 million, or 24.6%, of total governmental revenues. The remaining 23.7% of governmental revenues include charges for services, capital grants, interest and investment earnings and other general revenues.

The net change in governmental revenues between 2009 and 2008 was an increase of $3.5 million. The largest increases in governmental revenues were charges for services of $4.5 million, mainly in economic environment and capital grants and contributions of $2.6 million, mainly in Transportation. These increases were partially offset by a decrease in operating grants and contributions of $3.3 million.

In 2009, charges for services accounted for $23 million, or 91.3%, of total business-type revenues. With this category, Solid Waste revenues accounted for $15.6, or 67.8%. The remaining program revenues included $1.2 million, or 5.2%, for both operating and capital grants and contributions and $1.1 million, or 4.8%, for interest and other miscellaneous revenues. These percentages remained consistent with 2008.

The County decreased total primary governmental expenses by $2.1 million, to $205.3 million, in 2009. The decrease was mainly in General Government and Solid Waste with a slight increase offset in Economic Environment. The governmental and business-type expense distribution in 2009 closely resembles the distribution from the prior year as $179.8 million, or 87.6% was in governmental activities and $25.5 million, or 12.4%, was in business-type activities. Public safety, health and human services, transportation, and economic environment programs comprise 90.5% of governmental expenses and 79.2% of total expenses.

In 2009, Solid Waste comprised 62.7% of the $25.2 million in business-type expenses. Although total Solid Waste expenses decreased in 2009 from 2008 by $1.3 million, the percent-to-total increased from 60% in 2008. This was due to a decrease of $1.6 million in Land Use and Permitting (formerly Development Services) as a result of budget cuts. Overall expenses in Business-type activities decreased by $3.4 million compared to 2008. This represents an 11.8% decrease.

20 Thurston County, Washington 2009

The following graph illustrates the distribution of expenses by program for both governmental and business type activities.

Program Expenses - Government-Wide

$80,000,000 34.4% $70,000,000 $60,000,000 23.2% $50,000,000 $40,000,000 14.0% $30,000,000 7.8% 7.7% $20,000,000 4.2% $10,000,000 2.2% 1.8% 1.2% 1.7% 1.3% 0.6% $- 1 2 3 4 5 6 7 8 9 10 11 12

Legend: 1. Public Safety 4. Solid Waste 7. Land Use & Permitting 10. Interest 2. Health & Human Serv. 5. Economic Environment 8. Culture & Recreation 11. Water & Sewer 3. Transportation 6. Gen Government 9. Other Bus Type 12. Utilities & Environment

FINANCIAL ANALYSIS OF THE COUNTY’S MAJOR FUNDS

Following is an analysis of the county’s major governmental and proprietary funds.

Governmental Funds Analysis

The focus of Thurston County’s governmental funds is to provide information on near-term inflows, outflows, and balances of resources that are available for spending. Unreserved/undesignated fund balance serves as a useful measure of the County’s net resources available for spending at the end of the fiscal year.

As of December 31, 2009, the County’s governmental funds reported combined ending fund balances of $107.7 million, an increase of $12.5 million, or 13.1%, compared with the prior year. This increase was due mainly to the creation of a new Special Projects fund, titled Debt Holding – 2009. This fund was created to temporarily account for the drawdown of bond funds as they are needed to pay for construction costs. $13 million of unreserved fund balance was reported in this fund at year-end 2009. While these funds are reported as unreserved, they are in essence restricted to fund specific construction activities and programs.

21 Thurston County, Washington 2009

In 2009, total assets in the governmental funds increased $16.7 million compared to 2008. The largest increases in assets were in cash and pooled investments of $7.6 million and in Advances To Other Funds of $5.9 million. Within total assets, cash and pooled investments, increased by $13 million in the new Debt Holding – 2009 special revenue fund as described in the preceding paragraph. Another noteworthy increase involved a new tax imposed during 2009 that increased the cash and pooled investments by $1.4 million. This tax, which will help fund mental health and chemical dependence programs, resulted in the creation of a new special revenue fund titled Treatment Sales Tax. The tax was authorized by the Washington State legislature and amounts to an increase of 1/10 of one percent sales tax increase. One significant decrease in governmental funds cash and pooled investments happened in the Roads fund where the balance decreased by $8.4 million compared to 2008. This was due to increased transfers to help fund a new project called the Tilley Master Plan. This is a major renovation and expansion of the County’s maintenance facility. The County also set up a new non-major capital projects fund titled Tilley Master Plan for this purpose. Further, the Roads fund also transferred $3 million in Roads diversion funds to the General Fund to be used for Public Safety expenditures. The increase in Advances To Other Funds was from an advance of $6 million from the Detention Facility Sales Tax Holding Fund to the General Fund for short term liquidity purposes. The General Fund fully paid back this loan on 4/30/2010.

In 2009, total liabilities increased by $4.1 million over 2008 levels. This was primarily due to the liability side of the $6 million transfer described in the preceding paragraph as Advances From Other Funds increased this amount in the General Fund.

The following chart shows the distribution of total assets for all major governmental funds:

Total Assets - Governmental Funds

General Fund 16% Other Gov't Funds 18%

Public Health & Social Debt Holding - 2009 Services 10% 7% Detention Facilities Sales Tax Medic One 11% 15% Jail Capital Projects Roads 0% 9% Real Estate Excise Tax 14%

Governmental Fund revenues in 2009 exceeded 2008 levels by $2.1 million, or 1.5%. The increase was primarily due to increased grant revenue in workforce development and job training areas.

Governmental expenditures in 2009 exceeded 2008 levels by $22.7 million, or 11.8%. The major category of increase was Capital Outlay of $20 million. This was due to construction expenditures directly related to the sale of bonds in 2009 as previously discussed.

22 Thurston County, Washington 2009

The following chart shows revenues and expenditures for the eight major governmental funds and for the other governmental funds. Charted revenues and expenditures exclude other financing sources/uses and transfers.

In 2009, the General Fund, Public Health and Social Services Fund and Roads Fund account for 72% of total revenues and 65% of total expenditures. The 7% difference between revenues and expenditures is due to increased construction expenditures recorded in the Jail Capital Projects and no revenues reported in this fund. This fund now accounts for 11.8% of total expenditures. It did, however, have $29.3 million in Transfers In classified as other financing sources.

For 2009, the County is reporting the following as major governmental funds: General, Debt Holding – 2009, Detention Facility Sales Tax Holding, Jail Capital Projects, Real Estate Excise, Roads, Medic One, Public Health and Social Services, and Other Governmental.

The following are highlights related to each major fund in 2009:

The General Fund is the chief operating fund of the County. Including net transfers and capital lease financing, the General Fund unreserved fund balance was $8.6 million at the end of 2009, compared to $7.8 million at the end of 2008. General Fund total assets were $20.2 million and total liabilities were $11.6 million at the end of 2009. Assets increased by 71.2% and liabilities by 190% compared to 2008. As previously discussed, the respective increases in assets and liabilities were mainly due to the $6 million interfund loan to the General Fund. This loan had no effect on fund balance.

23 Thurston County, Washington 2009

General Fund revenues increased by $1.2 million, or 1.7%, from 2008 to 2009. This increase was mainly due to increased property tax revenues, including amounts diverted from the Road fund levy. This offsets a decrease in sales tax revenue. Overall expenditures in the General Fund for 2009, compared to 2008, decreased by $3.4 million, or 4.6%. All major functions within the General Fund realized slight decreases mainly due to budget cuts enacted by the Board of County Commissioners prior to the beginning of 2009.

The Debt Holding – 2009 Fund is a newly created fund in 2009. Its purpose is to account for the receipt of bond funds for the 2009 bond issue and to transfer out funds to the Jail Capital Projects Fund as expenditures become due. In 2009 the fund receipted in $42.8 million in debt issuance and transferred out $29.3 million. It both paid and receipted in interest and the difference, $13 million, is reported as cash and pooled investments and unreserved fund balance.

The Real Estate Excise Tax (REET) Fund accounts for excise taxes collected from real estate transactions. Each real estate transaction is charged ½ of 1 percent of the value of transacted property. These moneys are restricted for various capital expenditures as stipulated in state statutes.

Real Estate Excise Tax (REET) revenues were down $1.3 million, or 29.5%, in 2009 as compared to 2008. Cash and pooled investments decreased by $1.8 million, or 9.3%. Revenues associated this fund are directly tied to activity in the real-estate market and reflected the third consecutive year of reduced revenues. While revenues were down, there was again limited expenditure activity in the REET fund in 2009, resulting in a net excess of $3.1 million before other financing sources. The REET fund balance also decreased by nearly $1 million as collections of $3.1 million in revenue was offset by net transfers out of $4.1 million to fund debt payments in the Grand Mound Water/Sewer funds associated with capital projects and other debt service payments.

The Detention Facility Sales Tax Holding Fund holds 1/10-cent sales tax for future transfers for expenditures on detention-related facilities projects and debt service payments. In comparing 2009 to 2008, this fund saw a decrease in total assets of $0.9 million, or 5.8%. Liabilities, which are diminutive in this fund by design, decreased by about $175,000 in 2009 compared to 2008. During 2009 revenues decreased by $0.7 million, expenditures remained very near the same level as 2008, and transfers out for continued bond payments increased by $1.6 million. As a result, the net change in fund balance was a decrease of just over $643,000.

The Jail Capital Projects Fund is a major fund for the second time in 2009 because of continued capital project activity. Liabilities (Accounts Payable) decreased by $4.0 million, 74.1% mainly due to the timing of capital project payments. Many 2008 invoices were received at or just after year-end and needed to be accrued. In 2009, this was not the case. Expenditures in this fund, chiefly capital outlay, increased $17.9 million, or 238.7%, from 2008. To help fund these expenditures, transfers in increased by $27.1 million over the 2008 amount of $2.2 million. Fund balance at the end of 2009 was a negative $1.4 million, compared to a negative $5.4 million at the end of 2008. Since there are no assets in this fund, the $1.4 million is in Accounts Payable at year-end.

The Roads Fund provides road maintenance and construction services to the citizens of Thurston County. In this fund, total assets decreased by $7.6 million in 2009 compared to 2008. The net decrease was primarily due to a reduction of $8.4 million in cash and pooled investments and an increase of $0.8 million in Due From Other Governmental Units. The Roads ending fund balance, correspondingly, realized a decrease of $8.8 million.

Compared to 2008, revenues in the Roads fund decreased by $0.7 million, or 2.4%, and expenditures increased by $5.2 million, or 17.2%. Revenues decreased due to less than expected tax collections. Expenditures increased because of increased work on the Tilley Master Plan capital outlay and scheduled road maintenance projects.

24 Thurston County, Washington 2009

The Public Health and Social Services Fund provides social and health services to the citizens of Thurston County. Fund total assets decreased in 2009 by $1.7 million and total liabilities decreased by approximately $400,000, compared to 2008. The result was a net decrease in the Public Health and Social Services fund balance of $1.3 million.

In the Public Health fund, both revenues and expenditures decreased by approximately $5.2 million, or 13.2% respectively compared to 2008. The main category of revenue decreases in 2009 was in intergovernmental (grants). The main reasons for this was the county moved one of the divisions within Public Health, titled Developmental Disabilities, out of this fund and into the Workforce Development fund. This is a non-major special revenue fund. In so doing, it moved $6.0 million of grant revenue out of the Public Health fund.

The Medic One Fund provides basic and advanced life support services to the citizens of Thurston County. In 2009, Medic One’s total assets increased by $0.9 million, or 4.8%, compared to 2008. Liabilities remained fairly constant at just below $1.2 million.

Revenues in Medic One consist primarily of voter approved property taxes and remained very constant in 2009 at $9.2 million. Expenditures saw a slight increase of just over $217,000 compared to the previous year. The 2009 expenditure amount was $8.4 million. The increase in expenditures was due increased intergovernmental billings. Results of operations showed a net increase in fund balance of just over $858,000.

The Other Governmental Funds comprise all non-major Special Revenue, Capital Projects, and Debt Service funds of the County. During 2009 total assets in these funds increased by $6.3 million, or 35.8%. Cash and pooled investments increased the most in these funds due to the addition of a new non-major capital project fund titled Tilley Master Plan. This fund was discussed earlier and its assets added over $3.3 million to the Other Governmental Funds. Liabilities in these funds remained fairly consistent comparing 2009 to 2008 realizing an increase of just over $720,000. Revenues in the Other Governmental funds increased $8.5 million, or 32.4%. The largest increase in revenues in these funds was in Intergovernmental category. This increase was described in the Public Health fund above where the developmental disabilities division was moved and along with it $6 million of grant revenue to the non-major Workforce Development fund. This fund is reported within the other Governmental Funds. During 2009, expenditures for Other Governmental Funds showed an increase of $7.1 million, primarily in Economic Environment of $3.1 million, and in Health and Human Services of $3.3 million. Fund balance in the other governmental funds increased by $5.6 million compared to 2008 mainly due to net transfers in of $11.6 million to help pay for various construction projects and annual debt service previously discussed.

25 Thurston County, Washington 2009

Proprietary Funds Net Assets Analysis

Thurston County’s enterprise funds provide the same type of information found in the government-wide financial statements for business-type activities. This information is presented in the same accounting format. Internal service funds, although proprietary, are not included in the following section.

Thurston County Enterprise Net Assets

Other Total Solid Grand Enterprise Enterprise ASSETS W a ste Mound Funds Funds Cash & Pooled Investments $ 2,501,904 $ 1,682,204 $ 2,842,753 $ 7,026,861 Other Current Assets 2,760,526 207,252 611,013 3,578,791 Restricted Assets: Cash and Pooled Investments - 154,826 125,915 280,741 Total Current Assets 5,262,430 2,044,282 3,579,681 10,886,393 Long-Term Assets: Receivables and Deff Chrgs. - 2,930,139 1,047,019 3,977,158 Capital Assets 11,552,801 15,603,171 10,539,468 37,695,440 Restrict Assets: Cash and Pooled Investments 21,397,275 - - 21,397,275 Total Long Term Assets 32,950,076 18,533,310 11,586,487 63,069,873 Total Assets 38,212,506 20,577,592 15,166,168 73,956,266

LIABILITIES Current Liabilities: Accounts Payable/ Due To's 2,067,334 102,558 549,773 2,719,665 Lim.Tax G.O.Bond-Current - 754,768 - 754,768 Total Current Liabilities 2,067,334 857,326 549,773 3,474,433 Long-Term Liabilities: Limited G.O. Bonds Payable - 8,602,911 - 8,602,911 Comp Abs & OPEB Payable - - 294,173 294,173 Intergov. Loans & Contracts Payable - 82,641 1,418,634 1,501,275 Advances From Other Funds - - 689,252 689,252 Accumulated Landfill Closure Costs 19,219,878 - - 19,219,878 Total Long Term Liabilities 19,219,878 8,685,552 2,402,059 30,307,489 Total Liabilities 21,287,212 9,542,878 2,951,832 33,781,922

NET ASSETS Invested in Capital Assets, net rel. debt 11,552,801 6,148,346 8,972,422 26,673,569 Restricted For: Postclosure, Net Of Related Liability 5,372,493 - - 5,372,493 Debt Service - 3,085,792 964,839 4,050,631 Unrestricted (Deficit) - 1,800,576 2,277,075 4,077,651

Total Net Assets $ 16,925,294 $ 11,034,714 $ 12,214,336 $ 40,174,344

The Solid Waste and Grand Mound utilities are the only major enterprise funds for Thurston County.

26 Thurston County, Washington 2009

The Solid Waste Fund provides solid waste disposal and reduction services to the citizens of Thurston County. The Grand Mound Fund provides water and waste water services to residents of Grand Mound in southern Thurston County. These funds comprise 79.5% of enterprise assets and 91.3% of enterprise liabilities.

Combined net assets for enterprise funds were $40.2 million in 2009, of which $28 million, or 69.6%, resided in the two major funds. Of the combined net assets, $26.7 million, or 66.4%, are capital assets net of related debt, whereas $4.1 million, or 10.2%, are unrestricted. Unrestricted net assets decreased by $2.5 million from 2008. Total assets for enterprise funds decreased in 2009 by $0.7 million. The majority of this decrease was in the Due From Other Funds current asset account. At the end of 2008, the County accrued $0.9 million of transfers from the Real Estate Excise Tax (REET) fund to the Grand Mound enterprise fund for payments on various capital projects during the year. These projects were substantially complete before year-end 2009, thus a similar accrual of REET funds was not made at the end of 2009. Total liabilities in the enterprise funds at the end of 2009 were $33.8 million. This represents a $2.8 million, or 7.7%, decrease from 2008. This decrease happened mainly in the Accounts Payable, Bonds Payable, and Accumulated Landfill Closure Costs accounts.

Proprietary Funds Revenue/Expense Analysis

The following table is a summary of enterprise fund revenues and expenses in 2009.

Thurston County Washington Enterprise Funds Revenues and Expenses

Other Total Solid Grand Enterprise Enterprise W a ste Mound Funds Funds Revenues: Charges for Services $ 15,558,606 $ 1,367,705 $ 6,528,533 $ 23,454,844 Miscellaneous 7,055 8,755 6,195 22,005 Interest Revenue 708,849 209,334 111,475 1,029,658 Other Nonoperating Revenue - (49,200) 1,267,257 1,218,057 Total Revenues 16,274,510 1,536,594 7,913,460 25,724,564 Expenses: Salaries and Benefits 2,268,520 331,657 4,791,559 7,391,736 Other Supplies and Expenses 225,951 60,494 179,064 465,509 Contractual Services 1,399,825 167,571 1,196,503 2,763,899 Longhaul Contract 10,504,790 - - 10,504,790 Interfund Services and Charges 1,039,797 28,511 1,596,060 2,664,368 Depreciation/Amortization 836,275 424,236 791,044 2,051,555 Misc. Nonoperating Expenses 155,042 509,316 47,937 712,295 Total Expenses 16,430,200 1,521,785 8,602,167 26,554,152 Income (Loss) before Contrib. and Trans. (155,690) 14,809 (688,707) (829,588) Capital Contributions - 114,696 - 114,696 Transfers In (Out) (80,401) (23,763) 2,903,602 2,799,438 Change in Net Assets (236,091) 105,742 2,214,895 2,084,546 Net Assets as of January 1 17,161,385 10,928,972 9,999,441 38,089,798 Net Assets as of December 31 $ 16,925,294 $ 11,034,714 $ 12,214,336 $ 40,174,344

27 Thurston County, Washington 2009

Total operating revenues from charges for services in 2009 are $23.5 million and comprise 91.2% of total enterprise operating and non-operating revenues. Total operating revenues for enterprise funds decreased slightly by just under $300,000 in 2009. Please note that operating revenues and expenses are not segregated within the accompanying summarized table whereas they are segregated within the fund financial statements.

The Solid Waste Fund has provided waste disposal and reduction services through a solid waste transfer facility since 1999 at the Hawk’s Prairie Solid Waste and Recovery Center. Solid waste was disposed at a landfill at this site prior to that time. Maintenance of the closed landfill is fully funded through post closure reserves generated from landfill revenues prior to closure. Solid Waste Fund revenues comprise 63.6% of total enterprise revenues and 61.9% of total enterprise expenditures.

The Grand Mound Fund has provided water and waste water services to the Grand Mound area since 1999. Grand Mound Fund revenues comprise 6% of total enterprise revenues and 5.7% of total enterprise expenses. Interest revenues comprise 13.6% of total revenues in the Grand Mound Fund, primarily from funds reserved for the repayment of general obligation debt. In 2009, Charges for Services increased by just over $364,000, or 36.2%. The main reason for this increase was that 2009 was the first full year of operation of the Great Wolf Lodge, a hotel/water park that opened during the latter part of 2008.

The County has usually funded utility capital construction and major replacement with general facility charges and assessments. Consequently, depreciation expense comprises 41.9% of the $1 million Grand Mound Fund operating expenses in 2009. In April of 2007 the County signed an agreement with the Chehalis Tribe for a $1.6 million water-line construction and service agreement for a Great Wolf Lodge water park, convention center and hotel. The agreement states that the Grand Mound utility will provide up to 85,000 gallons of water per day to this facility. The lodge opened in the spring of 2008 and is one of the major utility users for the County.

General Fund Budgetary Highlights

Thurston County adopts an annual budget in December of the preceding year. Adjustments are made to the budget throughout the year with a major review in June. The following table shows the changes between the original and final budget as of December 31, 2009. A positive variance is reported if final budget revenues exceed original budget revenues whereas a negative variance is reported if final budget revenues are less than the original budgeted revenues. The reverse is shown for expenditures. A negative variance is reported if final budget expenditures exceed original budget expenditures and a positive variance is shown if the original budget expenditures exceeds the final budgeted expenditures.

28 Thurston County, Washington 2009

Thurston County General Fund Changes in Budget

Original Variance Pos Budget Final Budget (Neg) Revenues: Taxes $ 53,497,798 $ 50,797,798 $ (2,700,000) Licenses & Permits 1,635,656 1,635,656 - Intergovernmental 6,675,984 7,839,847 1,163,863 Charges for Services 7,752,470 8,375,239 622,769 Fines & Forfeitures 1,611,750 1,611,750 - Miscellaneous 2,196,867 1,444,539 (752,328) Total General Revenues 73,370,525 71,704,829 (1,665,696) Other Financing Sources 2,388,056 3,559,526 1,171,470 Total Revenues $ 75,758,581 $ 75,264,355 $ (494,226)

Expenditures by Department: Assessor's Office $ 3,598,299 $ 3,362,328 $ 235,971 Auditor's Office 5,336,103 4,947,750 388,353 Assigned Counsel 2,413,061 2,906,932 (493,871) Civil Service 109,667 109,667 - Clerk's Office 3,226,167 3,059,991 166,176 Commissioner's Office 1,582,186 1,582,186 - Coroner's Office 852,872 852,872 - Corrections 14,677,969 14,579,557 98,412 District Court 3,199,721 3,043,034 156,687 Human Resources 1,368,058 1,368,058 - Juvenile Probation 6,821,304 6,821,304 - Non-Departmental 4,354,689 5,298,331 (943,642) Prosecuting Attorney 7,886,439 7,863,293 23,146 State Examiner 115,000 115,000 - Sheriff 14,385,770 14,576,907 (191,137) Superior Court 4,445,863 4,706,442 (260,579) Treasurer's Office 1,150,959 1,100,959 50,000 WSU Extension 484,215 472,931 11,284 General Fund Expenditures 76,008,342 76,767,542 (759,200) Net Changes in Fund Balances (249,761) (1,503,187) (1,253,426) Fund Balances as of January 1 4,321,570 6,301,377 1,979,807 Fund Balances as of December 31 $ 4,071,809 $ 4,798,190 $ 726,381

29 Thurston County, Washington 2009

For revenues, the net decrease in total budgeted revenues from the original budget to the final budget was approximately $494,000, or a 0.7% decrease. The most significant dollar value change in budget revenues occurred in the categories:

• Taxes - The final budget was decreased by $2.7 million from the original budget due to updated sales tax collection projections. • Miscellaneous – The final budget was decreased by just over $752,000. The majority of this adjustment was a reduction in investment interest due to updated projections. • Intergovernmental - The final budget was increased here by just under $1.2 million due to general fund offices and departments being awarded more grant revenues than originally planned. • Charges for services – The final budget was increased here by approximately $623,000 due to a BoCC decision to adopt a more comprehensive cost allocation plan. • Other Financing Sources – The final budget was increased here by just under $1.2 million. The majority of this increase was due to the county enacting the Treatment Sales Tax described earlier. Transfers to general fund departments and offices involved in mental health and chemical dependency services were the recipients.

With regard to expenditures, the net increase in total budget expenditures from the original budget to the final budget was approximately $760,000, or 1.0%. The most significant dollar value change in budget expenditures occurred in Non-Departmental as there was an increase of approximately $944,000 here. The chief transaction was a mid-year budget amendment to transfer $1.5 million out to the County’s Land Use and Permitting enterprise fund. Other smaller increases and decreases took place in various other offices/departments as identified above.

The net change in budgeted fund balance for the general fund was a reduction of just under $1.3 million, or 19.9% of beginning 2009 fund balance.

General Fund Budget to Actual Variances

The table on the following page summarizes differences between budget and actual for revenues and expenditures in the General Fund for 2009. Operating transfers are included within the amounts reported for revenues and expenditures for each office and department. The final results for 2009 show actual revenues at approximately $992,000, or 1.3% below the final budget and actual expenditures at $3.3 million or 4.5% under budget. When compared to the prior year, actual revenues decreased by $3.6 million, or 4.6%, whereas actual expenditures (including transfers out) decreased by $3.2 million or 4.2%.

In regards to revenues, the largest negative variance between budget and actual was in the taxes category. The County’s General Fund received $2 million less in taxes than projected. This variance was mainly attributed to sales tax receipts, and was a direct result of the national and local economic downturn that hit businesses and individual taxpayers towards the end of 2008 and all of 2009.

The ending actual fund balance in the General Fund for 2009 was $8.6 million. This was a $0.8 million increase from 2008. With the efforts to reduce expenditures and increase other revenues, Thurston County was able to offset the loss in tax revenues and increase the actual General Fund ending fund balance by $3.8 million over the final budget.

30 Thurston County, Washington 2009

Thurston County General Fund Revenues, Expenditures & Fund Balance

Variance Pos Final Budget Actuals (Neg) Revenues: Taxes $ 50,797,798 $ 48,774,883 $ (2,022,915) Licenses & Permits 1,635,656 1,676,638 40,982 Intergovernmental 7,839,847 8,741,432 901,585 Charges for Services 8,375,239 7,774,044 (601,195) Fines & Forfeitures 1,611,750 2,118,710 506,960 Miscellaneous 1,444,539 1,455,696 11,157 Total General Revenues 71,704,829 70,541,403 (1,163,426) Total Other Financing Sources 3,559,526 3,730,512 170,986 Total Revenues $ 75,264,355 $ 74,271,915 $ (992,440)

Expenditures by Department: Assessor's Office $ 3,362,328 $ 3,360,429 $ 1,899 Auditor's Office 4,947,750 4,336,722 611,028 Assigned Counsel 2,906,932 2,900,381 6,551 Civil Service 109,667 17,240 92,427 Clerk's Office 3,059,991 3,059,033 958 Commissioner's Office 1,582,186 1,447,875 134,311 Coroner's Office 852,872 831,319 21,553 Corrections 14,579,557 13,991,934 587,623 District Court 3,043,034 2,864,004 179,030 Human Resources 1,368,058 1,132,542 235,516 Juvenile Probation 6,821,304 6,544,523 276,781 Non-Departmental 5,298,331 4,737,238 561,093 Prosecuting Attorney 7,863,293 7,820,479 42,814 State Examiner 115,000 97,807 17,193 Sheriff 14,576,907 14,274,023 302,884 Superior Court 4,706,442 4,578,286 128,156 Treasurer's Office 1,100,959 1,037,284 63,675 WSU Extension 472,931 456,130 16,801 General Fund Expenditures 76,767,542 73,487,249 3,280,293 Net Changes in Fund Balances (1,503,187) 784,666 2,287,853 Fund Balances as of January 1 6,301,377 7,780,436 1,479,059 Fund Balances as of December 31 $ 4,798,190 $ 8,565,102 $ 3,766,912

31 Thurston County, Washington 2009

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

Thurston County’s total net investment in governmental and business-type capital assets was $473.2 million at year end. Of this total, $309.8 million (65.5%) are non-depreciable assets and $163.4 million (34.5%) are depreciated. Capital assets comprise 70.5% of total assets. Capital assets include land, construction in progress, buildings, improvements, machinery and equipment and infrastructure. A capital asset breakdown is provided in Note VI within the financial statement section.

Government-wide, net depreciable assets decreased by $1.9 million in 2009, while non-depreciable assets increased by $33.9 million. The most significant increases in non-depreciable assets were due to the capitalization of $25.3 million in Accountability and Restitution Center, described earlier, and $11.3 million of capitalization in the Tilley Master Plan also described earlier.

Long-Term Debt

Total general obligation debt outstanding at year end was $90.1 million ($80.7 million in governmental activities and $9.4 million in Business-type activities). This total represents an increase over 2008 by $39.9 million. This increase was due to the issuance of $42.8 in general obligation debt in April 2009. This new issuance was discussed earlier in the financial highlights section of this document. Loans and leases were $2 million at year end.

The County has the capacity to issue $438.7 million in debt without a vote under the limitation of indebtedness statute. Debt liabilities exceed assets reserved for debt repayment by $89.9 million. This leaves $348.8 million of additional indebtedness available under the 1.5% limit of taxable property value. See financial statement note VII for more information on the various debt issuances outstanding and the original reason for their issuance.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of Thurston County’s finances for all those with an interest in the County’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Auditor’s Office, Thurston County, 2000 Lakeridge Drive SW, Olympia, WA. 98502.

32 Thurston County, Washington 2009

Government Wide Financial Statements

33 Thurston County, Washington 2009

Statement of Net Assets December 31, 2009 Page 1 of 2

Primary Government Governmental Business-Type ASSETS Activities Activities Total

Curre nt Asse ts: Cash & Pooled Investments $ 129,267,893 $ 7,026,861 $ 136,294,754 Receivables: Taxes Receivable 3,118,354 - 3,118,354 Special Assessment Receivables 74,670 141,902 216,572 Accrued Interest & Penalties 3,912,274 141,655 4,053,929 Customer Account Receivables 14,075,891 1,604,377 15,680,268 Internal Balances 1,439,296 (1,439,296) - Due from Other Government Units 7,631,290 852,338 8,483,628 Inventory 639,569 - 639,569 Prepayments 358,665 - 358,665 Restricted Assets: Cash & Pooled Investments - 280,741 280,741 Total Current Assets 160,517,902 8,608,578 169,126,480 Long-Term Assets: Deferred Charges 50,793 156,540 207,333 Community Loans Receivable - 191,231 191,231 Special Assessment Receivables 153,947 3,629,387 3,783,334 Investment in Joint Ventures, Net 3,338,056 - 3,338,056 Capital Assets: Non-Depreciable 302,550,801 7,239,252 309,790,053 Depreciable, Net 132,946,250 30,456,188 163,402,438 Restricted Assets : Cash and Pooled Investments - 21,397,275 21,397,275 Total Noncurrent Assets 439,039,847 63,069,873 502,109,720

Tota l Asse ts 599,557,749 71,678,451 671,236,200

See accompanying notes to the financial statements

34 Thurston County, Washington 2009

Statement of Net Assets December 31, 2009 Page 2 of 2

Primary Government Governmental Business-Type LIABILITIES Activities Activities Total

Current Liabilities: Accounts Payable 8,092,412 1,149,652 9,242,064 Notes/Leases Payable 111,496 81,099 192,595 Due to Other Government Units 871,499 - 871,499 Compensated Absences 4,779,377 158,432 4,937,809 Limited G.O. Bonds Payable 4,203,265 754,768 4,958,033 Spec Assessment Debt with Govern. Commitment - 81,818 81,818 Unearned Revenue 419,425 11,712 431,137 Total Current Liabilities 18,477,474 2,237,481 20,714,955 Long-Term Liabilities: Limited G.O. Bonds Payable 76,544,353 8,602,911 85,147,264 Spec Assessment Debt with Govern. Commitment - 838,887 838,887 Compensated Absences 2,349,343 63,924 2,413,267 Other Post Employment Benefits Payable 7,793,959 230,249 8,024,208 Claims & Judgments Payable 4,414,807 - 4,414,807 Notes/Leases Payable 194,748 662,388 857,136 Accumulated Landfill Closure Costs - 19,219,878 19,219,878 Total Noncurrent Liabilities 91,297,210 29,618,237 120,915,447 Total Liabilities 109,774,684 31,855,718 141,630,402 NET ASSETS Investment in Capital Assets, Net of Related Debt 367,485,013 26,673,569 394,158,582 Re stricte d Ne t Asse ts: Culture & Recreation 192,300 - 192,300 Economic Environment 4,751,500 - 4,751,500 General Government 16,325,000 - 16,325,000 Health and Human Services 17,787,700 - 17,787,700 Internal Service 19,449,700 - 19,449,700 Public Safety 32,343,000 - 32,343,000 Physical Environment 3,257,100 - 3,257,100 Transportation 12,835,500 - 12,835,500 Debt Service - 4,050,631 4,050,631 Landfill Postclosure - 5,372,493 5,372,493 Unrestricted (Deficit) 15,356,252 3,726,040 19,082,292 Total Net Assets $ 489,783,065 $ 39,822,733 $ 529,605,798

See accompanying notes to the financial statements

35 Thurston County, Washington 2009

Statement of Activities For The Year Ended December 31, 2009 Page 1 of 2

Program Revenues Indirect Operating Capital Expense Charges for Grants And Gra nts & Functions/Programs Expenses Allocation Services Contributions Contributions PRIMARY GOVERNMENT Governmental Activities: General Government $ 13,856,978 $ (5,287,166) $ 5,552,908 $ 19,322 $ 19,950 Culture & Recreation 3,655,755 124,495 755,406 103,493 - Economic Environment 15,780,061 70,306 4,463,060 11,621,402 1,410,257 Health & Human Services 46,636,760 911,806 3,154,554 29,552,440 3,641 Public Safety 68,382,880 2,233,008 9,250,719 4,083,723 1,647,527 Transportation 27,589,210 1,062,139 958,263 36,322 6,236,708 Utilities & Environment 1,275,014 41,002 580,455 84,955 - Interest and Fiscal Charges 3,459,983 - - - - Total Governmental Activities 180,636,641 (844,410) 24,715,365 45,501,657 9,318,083 Business-Type Activities: Solid Waste 15,860,155 131,190 15,558,195 279,590 - Water 802,337 91,960 627,236 - 38,232 Sewer 1,522,537 183,921 1,276,883 - 76,464 Stormwater 2,442,203 17,240 2,214,034 387,403 - Development Services 4,055,938 420,099 3,326,600 396,014 - Total Business-Type Activities 24,683,170 844,410 23,002,948 1,063,007 114,696 Total Primary Government $ 205,319,811 $ - $ 47,718,313 $ 46,564,664 $ 9,432,779

See accompanying notes to the financial statements

36 Thurston County, Washington 2009

Statement of Activities For The Year Ended December 31, 2009 Page 2 of 2

Net (Expense) Revenue and Changes In Net Assets Primary Government Governmental Business-Type Functions/Programs Activities Activities Total PRIMARY GOVERNMENT Governmental Activities: General Government $ (2,977,632) $ - $ (2,977,632) Culture & Recreation (2,921,351) - (2,921,351) Economic Environment 1,644,352 - 1,644,352 Health & Human Services (14,837,931) - (14,837,931) Public Safety (55,633,919) - (55,633,919) Transportation (21,420,056) - (21,420,056) Utilities & Environment (650,606) - (650,606) Interest and Fiscal Charges (3,459,983) - (3,459,983) Total Governmental Activities (100,257,126) - (100,257,126) Business-Type Activities: Solid Waste - (153,560) (153,560) Water - (228,829) (228,829) Sewer - (353,111) (353,111) Stormwater - 141,994 141,994 Development Services - (753,423) (753,423) Total Business-Type Activities - (1,346,929) (1,346,929) Total Primary Government $ (100,257,126) $ (1,346,929) $ (101,604,055) General Revenues: Taxes: Property Taxes 61,134,127 - 61,134,127 Sales Taxes 23,028,337 - 23,028,337 Shared Revenues & Entitlements 8,869,856 - 8,869,856 Excise Taxes 5,438,437 - 5,438,437 Other General Revenues: Interest & Investment Earnings 6,457,964 1,029,658 7,487,622 Miscellaneous 381,641 22,005 403,646 Transfers In/(Out) (2,799,438) 2,799,438 - Total General Revenues, Special Items and Transfers 102,510,924 3,851,101 106,362,025 Change in Net Assets 2,253,798 2,504,172 4,757,970 Net Assets as of January 1 487,529,267 37,318,561 524,847,828 Net Assets as of December 31 $ 489,783,065 $ 39,822,733 $ 529,605,798

See accompanying notes to the financial statements

37 Thurston County, Washington 2009

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38 Thurston County, Washington 2009

Balance Sheet Governmental Funds December 31, 2009 Page 1 of 2

Debt Detention Jail Real General Holding - Facility Sales Capital Estate ASSETS Fund 2009 Tax Holding Projects Excise Tax Current Assets: Cash & Pooled Investments $ 11,062,622 $ 13,034,079 $ 8,492,112 $ - $ 17,485,700 Receivables: Taxes Receivable 1,657,344 - - - - Special Assessment Receivables - - - - - Accrued Interest & Penalties 3,401,151 7,745 52,527 - 78,450 Customer Account Receivables 2,530,392 - - - - Due from Other Funds 540,031 - - - - Due from Other Government Units 998,021 - - - - Inventory - - - - - Prepayments 5,437 - - - - Advances To Other Funds - - 6,000,000 - -

Total Assets $ 20,194,998 $ 13,041,824 $ 14,544,639 $ - $ 17,564,150

LIABILITIES Current Liabilities: Accounts Payable $ 802,433 $ - $ 2,330 $ 1,405,467 $ 1,959 Due to Other Funds 13,576 - 12,175 17,533 74,033 Due to Other Government Units - - - - - Deferred Revenues 4,813,887 - - - - Advances From Other Funds 6,000,000 - - - -

Total Liabilities 11,629,896 - 14,505 1,423,000 75,992 FUND BALANCES Reserved For: Debt Service - - - - - Advances - - 6,000,000 - - Inventories - - - - - Unreserved - Designated for Petty Cash - - - - - General Fund 14,700 - - - - Special Revenue Funds - - - - - Unreserved - Undesignated, Reported In: - - - - - General Fund 8,550,402 - - - - Special Revenue Funds - 13,041,824 8,530,134 - 17,488,158 Capital Projects Funds - - - (1,423,000) -

Total Fund Balance 8,565,102 13,041,824 14,530,134 (1,423,000) 17,488,158

Total Liabilities & Fund Balances $ 20,194,998 $ 13,041,824 $ 14,544,639 $ - $ 17,564,150 See accompanying notes to the financial statements

39 Thurston County, Washington 2009

Balance Sheet Governmental Funds December 31, 2009 Page 2 of 2

Public Health Other Total Medic & Social Governmental Governmental ASSETS Roads One Services Funds Funds Current Assets: Cash & Pooled Investments $ 8,518,570 $ 18,438,517 $ 7,062,492 $ 19,696,467 $ 103,790,559 Receivables: Taxes Receivable 916,524 439,267 34,548 70,671 3,118,354 Special Assessment Receivables - - 14,904 59,766 74,670 Accrued Interest & Penalties 11,418 70,571 40,603 171,350 3,833,815 Customer Account Receivables - 5,140 - 470,791 3,006,323 Due from Other Funds 26,015 - 340,071 24,244 930,361 Due from Other Government Units 1,426,924 15,101 1,954,441 3,229,528 7,624,015 Inventory 406,608 - - - 406,608 Prepayments - - - 222,700 228,137 Advances To Other Funds 689,252 - - - 6,689,252

Total Assets $ 11,995,311 $ 18,968,596 $ 9,447,059 $ 23,945,517 $ 129,702,094

LIABILITIES Current Liabilities: Accounts Payable $ 1,062,742 $ 590,255 $ 1,987,951 $ 1,578,570 $ 7,431,707 Due to Other Funds 45,972 7,564 105,801 557,326 833,980 Due to Other Government Units 4,181 157,479 279,235 430,527 871,422 Deferred Revenues 1,293,891 439,267 49,452 250,079 6,846,576 Advances From Other Funds - - - - 6,000,000

Total Liabilities 2,406,786 1,194,565 2,422,439 2,816,502 21,983,685 FUND BALANCES Reserved For: Debt Service - - - 4,397 4,397 Advances 689,252 - - - 6,689,252 Inventories 406,608 - - - 406,608 Unreserved - Designated for Petty Cash - General Fund - - - 14,700 Special Revenue Funds 300 100 2,850 19,975 23,225 Unreserved - Undesignated, Reported In: - General Fund - - - - 8,550,402 Special Revenue Funds 8,492,365 17,773,931 7,021,770 17,132,340 89,480,522 Capital Projects Funds - - - 3,972,303 2,549,303

Total Fund Balance 9,588,525 17,774,031 7,024,620 21,129,015 107,718,409

Total Liabilities & Fund Balances $ 11,995,311 $ 18,968,596 $ 9,447,059 $ 23,945,517 $ 129,702,094 See accompanying notes to the financial statements

40 Thurston County, Washington 2009

Reconciliation Of The Balance Sheet Of Governmental Funds To The Statement Of Net Assets December 31, 2009

Governmental Funds

Fund balance as shown in the Governmental Funds Balance Sheet $ 107,718,409

The cost of capital assets and joint ventures, which is expended and not recognized in governmental funds, is deferred to future periods in the statement of net assets 374,249,201

Debt, which is not reported in governmental funds, is reported in the statement of net assets (80,689,312)

Assets, liabilities and resulting net assets of internal service funds, which are separately reported in proprietary fund statements, are included and combined with governmental balances in the statement of net assets 83,671,032

Long term special assessment receivables and unamortized debt discount on long term debt, which is not reported in governmental funds, is reported in the statement of net assets 204,740

Long term (non-available) receivables, which are deferred in governmental funds, are recognized and accrued as revenues in the statement of net assets 17,283,744

Compensated absences and other post employment benefits, which are not reported in governmental funds, are reported as an accrued liability in the statement of net assets (13,006,360)

Interfund balances, which are reported in governmental and proprietary funds, are eliminated in the statement of net assets (except for a residual amount outstanding between governmental and enterprise activities) 351,611

Net assets for governmental funds as shown in Statement of Net Assets $ 489,783,065

See accompanying notes to the financial statements

41 Thurston County, Washington 2009

Statement Of Revenues, Expenditures And Changes In Fund Balances Governmental Funds For The Year Ended December 31, 2009 Page 1 of 2

Debt Detention Jail Real General Holding - Facility Sales Capital Estate Fund 2009 Tax Holding Projects Excise Tax

Revenues: Taxes $ 48,774,883 $ - $ 3,858,484 $ - $ 2,543,895 Licenses & Permits 1,676,638 - - - - Intergovernmental 8,741,432 - - - - Charges for Services 7,774,044 - - - 13,922 Fines & Forfeits 2,118,710 - - - - Miscellaneous Revenue 1,455,696 414,176 308,638 - 546,772

Total Revenues 70,541,403 414,176 4,167,122 - 3,104,589 Expenditures: Current: General Government 11,734,415 - - - 4,542 Culture & Recreation 456,552 - - - - Economic Environment 217,952 - - - - Health & Human Services - - - - - Public Safety 56,645,451 - 17,818 62,568 - Transportation 98,244 - - - 8,087 Utilities & Environment 570,581 - - - - Capital Outlay 159,610 - - 25,335,404 - Debt Service: Principal 79,852 - - - - Interest & Fiscal Charges 23,031 804,286 - - -

Total Expenditures 69,985,688 804,286 17,818 25,397,972 12,629 Excess (Deficiency) of Revenues Over Expenditures 555,715 (390,110) 4,149,304 (25,397,972) 3,091,960

Other Financing Sources (Uses) Capital Lease Financing 94,204 - - - - Sale of Capital Assets 300,005 - - - - Debt Issuance - 42,765,000 - - - Transfers In 3,336,303 - - 29,333,066 365,000 Transfers Out (3,501,561) (29,333,066) (4,792,545) - (4,418,699)

Total Other Financing Sources (Uses) 228,951 13,431,934 (4,792,545) 29,333,066 (4,053,699) Net Changes In Fund Balances 784,666 13,041,824 (643,241) 3,935,094 (961,739)

Fund Balances as of January 1 7,780,436 - 15,173,375 (5,358,094) 18,449,897

Fund Balances as of December 31 $ 8,565,102 $ 13,041,824 $ 14,530,134 $ (1,423,000) $ 17,488,158 See accompanying notes to the financial statements

42 Thurston County, Washington 2009

Statement Of Revenues, Expenditures And Changes In Fund Balances Governmental Funds For The Year Ended December 31, 2009 Page 2 of 2

Public Health Other Total Medic & Social Governmental Governmental Roads One Services Funds Funds

Revenues: Taxes $ 15,754,560 $ 8,624,616 $ 621,559 $ 9,778,043 $ 89,956,040 Licenses & Permits 368,392 - 581,278 81,591 2,707,899 Intergovernmental 11,361,281 66,023 30,050,909 19,350,504 69,570,149 Charges for Services 386,879 30 2,440,336 3,602,869 14,218,080 Fines & Forfeits - - - 52,374 2,171,084 Miscellaneous Revenue 75,460 519,143 504,405 1,821,827 5,646,117

Total Revenues 27,946,572 9,209,812 34,198,487 34,687,208 184,269,369 Expenditures: Current: General Government - - - 1,326,914 13,065,871 Culture & Recreation 307,320 - - 2,233,950 2,997,822 Economic Environment - - - 15,420,163 15,638,115 Health & Human Services - 8,253,974 34,273,104 3,644,477 46,171,555 Public Safety 1,765,045 - - 7,979,695 66,470,577 Transportation 21,331,346 - - 1,006,924 22,444,601 Utilities & Environment - - - 716,332 1,286,913 Capital Outlay 12,022,044 177,082 - 3,092,553 40,786,693 Debt Service: Principal 6,125 5,007 7,021 2,603,664 2,701,669 Interest & Fiscal Charges 1,686 942 1,683 2,718,932 3,550,560

Total Expenditures 35,433,566 8,437,005 34,281,808 40,743,604 215,114,376 Excess (Deficiency) of Revenues Over Expenditures (7,486,994) 772,807 (83,321) (6,056,396) (30,845,007)

Other Financing Sources (Uses) Capital Lease Financing - - - - 94,204 Sale of Capital Assets 372,198 85,608 10,412 66,853 835,076 Debt Issuance - - - - 42,765,000 Transfers In 3,858,276 12,575 1,070,223 13,277,480 51,252,923 Transfers Out (5,519,575) (12,575) (2,288,467) (1,691,699) (51,558,187)

Total Other Financing Sources (Uses) (1,289,101) 85,608 (1,207,832) 11,652,634 43,389,016 Net Changes In Fund Balances (8,776,095) 858,415 (1,291,153) 5,596,238 12,544,009

Fund Balances as of January 1 18,364,620 16,915,616 8,315,773 15,532,777 95,174,400

Fund Balances as of December 31 $ 9,588,525 $ 17,774,031 $ 7,024,620 $ 21,129,015 $ 107,718,409 See accompanying notes to the financial statements

43 Thurston County, Washington 2009

Reconciliation Of The Statement Of Revenues, Expenditures And Changes in Fund Balances Of Governmental Funds To The Statement Of Activities For The Year Ended December 31, 2009

Governmental Funds

Change in fund balance as shown in the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances $ 12,544,009

Capital Assets: Capital outlays, w hich are reported as expenditures in governmental funds, are capitalized and deferred to future periods and therefore not reported in the statement of activities 40,786,693 Depreciation (asset usage), w hich is not reported in governmental funds, is recognized and reported in the statement of activities (8,409,701) Gain (Loss) on the sale and disposition of governmental capital assets, w hich is not reported in governmental funds, is reported in the statement of activities (140,687) 32,236,305

Long-Term Debt: Bond and capital lease principal payments (w hich are reported as expenditures in governmental funds), are not reported as expenditures in the statement of activities (how ever, they are reported as reductions in the amount ow ed in the statement of net assets) 2,438,014 Debt issues costs, and other similar costs on debt issues, w hich are reported as expenditures in governmental funds, are deferred in the statement of net assets and then expensed over the life of the bond issue in the statement of activities 90,577 Long-term bond and capital lease financing proceeds (w hich are reported as "other financing sources" in governmental funds), are not recognized or reported in the statement of activities (how ever, they are reported as an increase in the amount ow ed in the statement of net assets for new debt). (42,859,204) (40,330,613)

Interfund Transactions: Pr of it or (loss) from internal service funds, w hich is reported separately in proprietary fund statements, is credited or charged to governmental expenses in the statement of activities (2,542,082) Other interfund transactions, w hich are reported in governmental funds, are eliminated in the statement of activities, except for a residual amount outstanding betw een governmental and business activities (1,264,036) Unbilled internal service costs from the County's cost allocation plan, w hich is not allocated to service users in governmental fund statements, is allocated to service users in the statement of activities, resulting in a residual amount outstanding betw een governmental and business activities 844,410 (2,961,708)

Othe r: Long term (non-available) revenues, w hich are deferred in governmental funds, are reported as revenues (or as a debit adjustment) in the statement of activities 3,487,462 Compensated absences and other post employment benefits, w hich are not reported in governmental funds, are reported as an expense in the statement of activities (2,721,657) 765,805

Change in net assets for governmental funds as shown in the Statement of Activities $ 2,253,798 See accompanying notes to the financial statements

44 Thurston County, Washington 2009

General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009 Page 1 of 5

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Revenues By Funding Source General Revenues: Taxes $ 53,497,798 $ 50,797,798 $ 48,774,883 $ (2,022,915) Licenses & Permits 1,635,656 1,635,656 1,676,638 40,982 Intergovernmental 6,675,984 7,839,847 8,741,432 901,585 Charges for Services 7,752,470 8,375,239 7,774,044 (601,195) Fines & Forfeits 1,611,750 1,611,750 2,118,710 506,960 Miscellaneous Revenue 2,196,867 1,444,539 1,455,696 11,157

Total General Revenues 73,370,525 71,704,829 70,541,403 (1,163,426) Other Financing Sources: Capital Lease Financing - - 94,204 94,204 Other Finance Sources - Capital Asset Sales 950 950 300,005 299,055 Transfers In 2,387,106 3,558,576 3,336,303 (222,273) Total Other Financing Sources 2,388,056 3,559,526 3,730,512 170,986

Total Revenues $ 75,758,581 $ 75,264,355 $ 74,271,915 $ (992,440)

See accompanying notes to the financial statements

45 Thurston County, Washington 2009

General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009 Page 2 of 5

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Expenditures by Department

Asse ssor's Office : General Government $ 3,598,299 $ 3,362,328 $ 3,360,429 $ 1,899

Tota l Asse ssor's Office 3,598,299 3,362,328 3,360,429 1,899

Auditor's Office: General Government 5,330,869 4,941,326 4,330,574 610,752 Debt Service: Principal 4,430 5,737 5,540 197 Interest and Fiscal Charges 804 687 608 79 Total Auditor's Office 5,336,103 4,947,750 4,336,722 611,028

Assigned Counsel: Public Safety 2,409,186 2,903,057 2,883,236 19,821 Capital Outlay - - 12,746 (12,746) Debt Service: Principal 2,300 2,300 4,111 (1,811) Interest and Fiscal Charges 1,575 1,575 288 1,287

Total Assigned Counsel 2,413,061 2,906,932 2,900,381 6,551

Civil Service: Public Safety 109,667 109,667 17,240 92,427 Total Civil Service 109,667 109,667 17,240 92,427

Clerk's Office: Public Safety 3,206,967 3,040,791 3,023,064 17,727 Capital Outlay - - 12,570 (12,570) Debt Service: Principal 16,000 16,000 17,030 (1,030) Interest and Fiscal Charges 3,200 3,200 6,369 (3,169)

Total Clerk's Office 3,226,167 3,059,991 3,059,033 958

See accompanying notes to the financial statements

46 Thurston County, Washington 2009

General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009 Page 3 of 5

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Commissione r's Office : General Government 1,477,595 1,477,595 1,344,223 133,372 Transportation 98,860 98,860 97,918 942 Debt Service: Principal 4,486 4,486 4,485 1 Interest and Fiscal Charges 1,245 1,245 1,249 (4) Total Commissioner's Office 1,582,186 1,582,186 1,447,875 134,311

Coroner's Office: Public Safety 847,837 847,837 806,881 40,956 Economic Environment 3,000 3,000 2,100 900 Capital Outlay - - 19,530 (19,530) Debt Service: Principal 1,437 1,437 2,247 (810) Interest and Fiscal Charges 598 598 561 37 Total Coroner's Office 852,872 852,872 831,319 21,553

Corrections: Public Safety 14,677,969 14,573,648 13,977,818 595,830 Capital Outlay - - 8,359 (8,359) Debt Service: Principal - 5,816 5,694 122 Interest and Fiscal Charges - 93 63 30 Total Corrections 14,677,969 14,579,557 13,991,934 587,623

District Court Public Safety 3,197,225 3,040,538 2,861,507 179,031 Debt Service: Principal 1,843 1,843 1,842 1 Interest and Fiscal Charges 653 653 655 (2) Total District Court 3,199,721 3,043,034 2,864,004 179,030

See accompanying notes to the financial statements

47 Thurston County, Washington 2009

General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009 Page 4 of 5

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Human Resources: General Government 1,352,648 1,352,648 1,119,626 233,022 Public Safety 10,110 10,110 7,878 2,232 Debt Service: Principal 4,200 4,200 4,074 126 Interest and Fiscal Charges 1,100 1,100 964 136 Total Human Resources 1,368,058 1,368,058 1,132,542 235,516

Juvenile Probation: Public Safety 6,821,304 6,821,304 6,525,083 296,221 Capital Outlay - - 12,289 (12,289) Debt Service: Principal - - 4,469 (4,469) Interest and Fiscal Charges - - 2,682 (2,682) Total Juvenile Probation 6,821,304 6,821,304 6,544,523 276,781

Non-Departmental: General Government 988,103 988,103 444,472 543,631 Utilities & Environment 582,208 582,208 570,581 11,627 Transportation 994 994 326 668 Economic Environment 200,040 200,040 215,852 (15,812) Culture and Recreation - - 4,446 (4,446) Transfers Out 2,583,344 3,526,986 3,501,561 25,425

Total Non-Departmental 4,354,689 5,298,331 4,737,238 561,093

Prosecuting Attorney: Public Safety 7,854,939 7,774,442 7,722,882 51,560 Capital Outlay - 57,351 67,587 (10,236) Debt Service: Principal 24,500 24,500 21,471 3,029 Interest and Fiscal Charges 7,000 7,000 8,539 (1,539) Total Prosecuting Attorney 7,886,439 7,863,293 7,820,479 42,814

See accompanying notes to the financial statements

48 Thurston County, Washington 2009

General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009 Page 5 of 5

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) State Examiner: General Government 115,000 115,000 97,807 17,193 Total State Examiner 115,000 115,000 97,807 17,193

Sheriff: Public Safety 14,385,770 14,566,515 14,263,559 302,956 Capital Outlay - 10,392 10,464 (72) Total Sheriff 14,385,770 14,576,907 14,274,023 302,884

Superior Court: Public Safety 4,440,795 4,701,374 4,556,303 145,071 Capital Outlay - - 16,065 (16,065) Debt Service: Principal 4,810 4,810 5,349 (539) Interest and Fiscal Charges 258 258 569 (311) Total Superior Court 4,445,863 4,706,442 4,578,286 128,156

Treasurer's Office General Government 1,150,959 1,100,959 1,037,284 63,675 Total Treasurer's Office 1,150,959 1,100,959 1,037,284 63,675

WSU Extension Culture and Recreation 481,182 468,838 452,106 16,732 Debt Service: Principal 1,418 3,318 3,540 (222) Interest and Fiscal Charges 1,616 775 484 291 Total WSU Extension 484,215 472,931 456,130 16,801

Total General Fund Expenditures $ 76,008,342 $ 76,767,542 $ 73,487,249 $ 3,280,293

Net Changes in Fund Balances (249,761) (1,503,187) 784,666 2,287,853

Fund Balances as of January 1 4,321,570 6,301,377 7,780,436 1,479,059

Fund Balances as of December 31 $ 4,071,809 $ 4,798,190 $ 8,565,102 $ 3,766,912

See accompanying notes to the financial statements

49 Thurston County, Washington 2009

Debt Holding - 2009 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ - $ - $ 414,176 $ 414,176

Total Revenues - - 414,176 414,176 Expenditures: Debt Service: Interest & Fiscal Charges - - 804,286 (804,286)

Total Expenditures - - 804,286 (804,286) Excess (Deficiency) of Revenues Over Expenditures - - (390,110) (390,110) Other Financing Sources (Uses) Other Fin. Sources - Bond Proceeds 48,650,000 48,650,000 42,765,000 (5,885,000) Transfers Out (48,300,000) (47,800,000) (29,333,066) 18,466,934

Total Other Financing Sources (Uses) 350,000 850,000 13,431,934 12,581,934 Net Changes In Fund Balances 350,000 850,000 13,041,824 12,191,824 Fund Balances as of January 1 - - - -

Fund Balances as of December 31 $ 350,000 $ 850,000 $ 13,041,824 $ 12,191,824

See accompanying notes to the financial statements

50 Thurston County, Washington 2009

Detention Facilities Sales Tax Holding Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Revenues: Taxes $ 4,421,898 $ 4,421,898 $ 3,858,484 $ (563,414) Miscellaneous Revenue 615,227 615,227 308,638 (306,589)

Total Revenues 5,037,125 5,037,125 4,167,122 (870,003) Expenditures: Current: Public Safety - - 17,818 (17,818)

Total Expenditures - - 17,818 (17,818) Excess (Deficiency) of Revenues Over Expenditures 5,037,125 5,037,125 4,149,304 (887,821)

Other Financing Sources (Uses) Transfers Out (4,006,714) (5,306,376) (4,792,545) 513,831

Total Other Financing Sources (Uses) (4,006,714) (5,306,376) (4,792,545) 513,831 Net Changes In Fund Balances 1,030,411 (269,251) (643,241) (373,990) Fund Balances as of January 1 15,058,723 15,173,375 15,173,375 -

Fund Balances as of December 31 $ 16,089,134 $ 14,904,124 $ 14,530,134 $ (373,990)

See accompanying notes to the financial statements

51 Thurston County, Washington 2009

Real Estate Excise Tax Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 3,600,000 $ 3,600,000 $ 2,543,895 $ (1,056,105) Charges for Services 15,900 15,900 13,922 (1,978) Miscellaneous Revenue 555,625 555,625 546,772 (8,853)

Total Revenues 4,171,525 4,171,525 3,104,589 (1,066,936) Expenditures: Current: General Government - 1,300,000 4,542 1,295,458 Transportation 5,020 5,020 8,087 (3,067)

Total Expenditures 5,020 1,305,020 12,629 1,292,391 Excess (Deficiency) of Revenues Over Expenditures 4,166,505 2,866,505 3,091,960 225,455 Other Financing Sources (Uses) Transfers In 365,000 365,000 365,000 - Transfers Out (7,059,303) (7,535,231) (4,418,699) 3,116,532

Total Other Financing Sources (Uses) (6,694,303) (7,170,231) (4,053,699) 3,116,532 Net Changes In Fund Balances (2,527,798) (4,303,726) (961,739) 3,341,987 Fund Balances as of January 1 15,794,224 18,449,897 18,449,897 -

Fund Balances as of December 31 $ 13,266,426 $ 14,146,171 $ 17,488,158 $ 3,341,987

See accompanying notes to the financial statements

52 Thurston County, Washington 2009

Roads and Transportation Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Revenues: Taxes $ 16,936,752 $ 16,436,752 $ 15,754,560 $ (682,192) Licenses & Permits - 411,302 368,392 (42,910) Intergovernmental 15,399,346 16,882,625 11,361,281 (5,521,344) Charges for Services 1,000,270 1,349,898 386,879 (963,019) Miscellaneous Revenue 115,700 126,050 75,460 (50,590)

Total Revenues 33,452,068 35,206,627 27,946,572 (7,260,055) Expenditures: Current: Culture & Recreation - 308,400 307,320 1,080 Public Safety 1,456,099 1,636,297 1,765,045 (128,748) Transportation 21,894,417 24,539,117 21,331,346 3,207,771 Capital Outlay 15,731,027 17,145,927 12,022,044 5,123,883 Debt Service: Principal 6,125 6,125 6,125 - Interest & Fiscal Charges 1,682 1,682 1,686 (4)

Total Expenditures 39,089,350 43,637,548 35,433,566 8,203,982 Excess (Deficiency) of Revenues Over Expenditures (5,637,282) (8,430,921) (7,486,994) 943,927 Other Financing Sources (Uses) Sale of Capital Assets 10,000 10,000 372,198 362,198 Transfers In 1,750,000 4,437,123 3,858,276 (578,847) Transfers Out (3,285,277) (5,897,777) (5,519,575) 378,202

Total Other Financing Sources (Uses) (1,525,277) (1,450,654) (1,289,101) 161,553 Net Changes In Fund Balances (7,162,559) (9,881,575) (8,776,095) 1,105,480 Fund Balances as of January 1 16,873,259 18,364,319 18,364,620 301

Fund Balances as of December 31 $ 9,710,700 $ 8,482,744 $ 9,588,525 $ 1,105,781

See accompanying notes to the financial statements

53 Thurston County, Washington 2009

Medic One Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Revenues: Taxes $ 8,854,185 $ 8,854,185 $ 8,624,616 $ (229,569) Intergovernmental 86,000 86,000 66,023 (19,977) Charges for Services 30 30 30 - Miscellaneous Revenue 642,668 642,668 519,143 (123,525)

Total Revenues 9,582,883 9,582,883 9,209,812 (373,071)

Expenditures: Current: Health & Human Services 10,694,676 10,694,676 8,253,974 2,440,702 Capital Outlay - - 177,082 (177,082) Debt Service: Principal 5,007 5,007 5,007 - Interest & Fiscal Charges 938 938 942 (4)

Total Expenditures 10,700,621 10,700,621 8,437,005 2,263,616

Excess (Deficiency) of Revenues Over Expenditures (1,117,738) (1,117,738) 772,807 1,890,545

Other Financing Sources (Uses) Sale of Capital Assets - - 85,608 85,608 Transfers In 5,000 12,575 12,575 - Transfers Out (5,000) (12,575) (12,575) -

Total Other Financing Sources (Uses) - - 85,608 85,608 Net Changes In Fund Balances (1,117,738) (1,117,738) 858,415 1,976,153 Fund Balances as of January 1 14,878,189 16,915,516 16,915,616 100

Fund Balances as of December 31 $ 13,760,451 $ 15,797,778 $ 17,774,031 $ 1,976,253

See accompanying notes to the financial statements

54 Thurston County, Washington 2009

Public Health & Social Services Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Revenues: Taxes $ 1,125,524 $ 674,742 $ 621,559 $ (53,183) Licenses & Permits 816,267 689,347 581,278 (108,069) Intergovernmental 35,757,409 31,541,907 30,050,909 (1,490,998) Charges for Services 2,750,609 3,059,797 2,440,336 (619,461) Miscellaneous Revenue 170,300 110,300 504,405 394,105

Total Revenues 40,620,109 36,076,093 34,198,487 (1,877,606) Expenditures: Current: Health & Human Services 42,157,288 37,189,517 34,273,104 2,916,413 Capital Outlay 70,000 70,000 - 70,000 Debt Service: Principal 5,850 5,000 7,021 (2,021) Interest & Fiscal Charges 4,450 3,600 1,683 1,917

Total Expenditures 42,237,588 37,268,117 34,281,808 2,986,309 Excess (Deficiency) of Revenues Over Expenditures (1,617,479) (1,192,024) (83,321) 1,108,703 Other Financing Sources (Uses) Sale of Capital Assets - - 10,412 10,412 Transfers In 1,507,117 1,144,046 1,070,223 (73,823) Transfers Out (118,820) (91,060) (2,288,467) (2,197,407)

Total Other Financing Sources (Uses) 1,388,297 1,052,986 (1,207,832) (2,260,818) Net Changes In Fund Balances (229,182) (139,038) (1,291,153) (1,152,115) Fund Balances as of January 1 6,645,274 8,315,423 8,315,773 350

Fund Balances as of December 31 $ 6,416,092 $ 8,176,385 $ 7,024,620 $ (1,151,765)

See accompanying notes to the financial statements

55 Thurston County, Washington 2009

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56 Thurston County, Washington 2009

Statement of Net Assets Proprietary Funds December 31, 2009 Page 1 of 2

Enterprise Funds Othe r Total Internal Solid Grand Enterprise Enterprise Service ASSETS Waste Mound Funds Funds Funds

Current Assets: Cash & Pooled Investments $ 2,501,904 $ 1,682,204 $ 2,842,753 $ 7,026,861 $ 25,477,334 Receivables: Special Assessment Receivables - - 141,902 141,902 - Accrued Interest & Penalties 117,059 4,594 20,002 141,655 78,459 Customer Account Receivables 1,388,672 141,277 74,428 1,604,377 212,975 Due From Other Funds 742,795 44,963 50,761 838,519 360,084 Due From Other Government Units 512,000 16,418 323,920 852,338 7,275 Inventory - - - - 232,961 Prepayments - - - - 130,528 Restricted Assets: Cash and Pooled Investments - 154,826 125,915 280,741 - Total Current Assets 5,262,430 2,044,282 3,579,681 10,886,393 26,499,616 Noncurrent Assets: Deferred Charges - 156,540 - 156,540 - Community Loans Receivable - - 191,231 191,231 - Special Assessment Receivables - 2,773,599 855,788 3,629,387 - Capital Assets: Non-Depreciable 2,078,309 2,806,248 2,354,695 7,239,252 5,488,799 Depreciable, Net 9,474,492 12,796,923 8,184,773 30,456,188 59,097,107 Restricted Assets : Cash and Pooled Investments 21,397,275 - - 21,397,275 - Total Noncurrent Assets 32,950,076 18,533,310 11,586,487 63,069,873 64,585,906

Total Assets 38,212,506 20,577,592 15,166,168 73,956,266 91,085,522

See accompanying notes to the financial statements

57 Thurston County, Washington 2009

Statement of Net Assets Proprietary Funds December 31, 2009 Page 2 of 2

Enterprise Funds

Othe r Total Internal Solid Grand Enterprise Enterprise Service LIABILITIES Waste Mound Funds Funds Funds

Current Liabilities: Accounts Payable 1,002,729 60,101 86,822 1,149,652 660,705 Notes/Leases Payable - 14,505 66,594 81,099 4,435 Due To Other Funds 1,064,605 17,340 155,007 1,236,952 58,032 Due To Other Government Units - - - - 77 Compensated Absences - - 158,432 158,432 441,645 Unearned Revenue - 10,612 1,100 11,712 - Lim.Tax G.O.Bond-Current Portion - 754,768 - 754,768 66,494 Spec Assessment Debt w ith Govern. Commitment - - 81,818 81,818 - Total Current Liabilities 2,067,334 857,326 549,773 3,474,433 1,231,388 Noncurrent Liabilities: Limited G.O. Bonds Payable - 8,602,911 - 8,602,911 293,621 Spec Assessment Debt w ith Govern. Commitment - - 838,887 838,887 - Compensated Absences - - 63,924 63,924 599,136 Other Post Employment Benefits Payable - - 230,249 230,249 875,538 Claims and Judgments Payable - - - - 4,414,807 Notes/Leases Payable - 82,641 579,747 662,388 - Advances From Other Funds - - 689,252 689,252 - Accumulated Landfill Closure Costs 19,219,878 - - 19,219,878 - Total Noncurrent Liabilities 19,219,878 8,685,552 2,402,059 30,307,489 6,183,102

Total Liabilities 21,287,212 9,542,878 2,951,832 33,781,922 7,414,490

NET ASSET S

Invested in Capital Assets, Net Of Related Debt 11,552,801 6,148,346 9,893,127 27,594,274 64,221,356 Restricted For: Postclosure 5,372,493 - - 5,372,493 - Debt Service - 3,085,792 964,839 4,050,631 - Unrestricted (Deficit) - 1,800,576 1,356,370 3,156,946 19,449,676

Total Net Assets $ 16,925,294 $ 11,034,714 $ 12,214,336 $ 40,174,344 $ 83,671,032

See accompanying notes to the financial statements

58 Thurston County, Washington 2009

Reconciliation Of The Statement Of Net Assets Of Proprietary Funds To The Statement Of Net Assets December 31, 2009

Busine ss Type Funds

Enterprise net assets as shown in the Proprietary Funds Statement of Net Asse ts $ 40,174,344

Internal balances for additional amounts owed between governmental and business units have not been included in governmental fund statements. (351,611)

Net assets for business-type funds as shown in Statement of Net Assets $ 39,822,733

See accompanying notes to the financial statements

59 Thurston County, Washington 2009

Statement Of Revenues, Expenses And Changes In Fund Net Assets Proprietary Funds For The Year Ended December 31, 2009

Enterprise Funds Other Total Internal Solid Gr a nd Enterprise Enterprise Service Waste Mound Funds Funds Funds

Operating Revenues: Charges for Services $ 15,558,606 $ 1,367,705 $ 6,528,533 $ 23,454,844 $ 106,721 Equipment Rental - - - - 5,660,483 Interfund Contributions - - - - 22,465,110 Miscellaneous 7,055 8,755 6,195 22,005 21,330

Total Operating Revenues 15,565,661 1,376,460 6,534,728 23,476,849 28,253,644

Operating Expenses: Salaries and Benefits 2,268,520 331,657 4,791,559 7,391,736 14,009,576 Other Supplies and Expenses 225,951 60,494 179,064 465,509 2,298,684 Contractual Services 1,399,825 167,571 1,196,503 2,763,899 4,870,466 Longhaul Contract 10,504,790 - - 10,504,790 - Interfund Services and Charges 1,039,797 28,511 1,596,060 2,664,368 1,852,804 Depreciation/Amortization 836,275 424,236 791,044 2,051,555 4,392,143 Claims Payments - - - - 1,685,676

Total Operating Expenses 16,275,158 1,012,469 8,554,230 25,841,857 29,109,349

Operating Income (Loss) (709,497) 363,991 (2,019,502) (2,365,008) (855,705)

Nonoperating Revenue (Expenses): Interest Revenue 708,849 209,334 111,475 1,029,658 560,489 Other Nonoperating Revenue (Expense) (155,042) (49,200) 1,267,257 1,063,015 266,259 Interest Expense & Fiscal Charges - (509,316) (47,937) (557,253) (18,951)

Total Nonoperating Revenue (Expense) 553,807 (349,182) 1,330,795 1,535,420 807,797

Income Before Contributions and Transfers: (155,690) 14,809 (688,707) (829,588) (47,908) Capital Contributions - 114,696 - 114,696 5,614,365 Transfers In (Out) (80,401) (23,763) 2,903,602 2,799,438 (2,494,174)

Change in Net Assets (236,091) 105,742 2,214,895 2,084,546 3,072,283

Net Assets as of January 1 17,161,385 10,928,972 9,999,441 38,089,798 80,598,749

Net Assets as of December 31 $ 16,925,294 $ 11,034,714 $ 12,214,336 $ 40,174,344 $ 83,671,032

See accompanying notes to the financial statements

60 Thurston County, Washington 2009

Reconciliation of The Statement of Revenues, Expenses And Changes in Fund Net Assets of Proprietary Funds To The Statement of Activities For The Year Ended December 31, 2009

Business-Type Funds

Change in enterprise net assets as shown in the Statement of Revenues, Expenses and Changes in Fund Net Assets $ 2,084,546

Internal services, provided primarily by internal service funds, also occurs between other County funds. The net effect of the elimination of these services is reflected in the statement of activities: Other interfund transactions 1,264,036 Allocated direct and indirect costs from the County's cost plan (844,410)

Change in net assets for business-type funds as shown in the Statement of Activities $ 2,504,172

See accompanying notes to the financial statements

61 Thurston County, Washington 2009

Statement of Cash Flows Proprietary Funds For The Year Ended December 31, 2009 Page 1 of 2

Enterprise Funds Othe r Total Internal Solid Grand Enterprise Enterprise Service Waste Mound Funds Funds Funds Cash Flows from Operating Activities: Cash Received from Customers $ 15,517,043 $ 2,202,170 $ 6,576,264 $ 24,295,477 $ 28,632,373 Cash Paid for Goods & Services (13,421,364) (423,417) (4,232,719) (18,077,500) (10,636,228) Cash Paid to Employees (2,268,520) (331,657) (4,824,416) (7,424,593) (13,550,330)

Net Cash Provided (Used) by Operating Activities (172,841) 1,447,096 (2,480,871) (1,206,616) 4,445,815

Cash Flows from Noncapital Financing Activities: Transfers In 742,666 1,350,888 4,229,229 6,322,783 2,549,359 Transfers Out (823,067) (1,374,651) (1,325,627) (3,523,345) (5,043,533) Grant Proceeds 23,783 (4,309) 698,102 717,576 4,453 Tax and Assessment Receipts - - 428,521 428,521 - Community Loans Issued - - (26,446) (26,446) - Payments On Community Loans - - 31,745 31,745 - Insurance Recoveries - - - - 133,112 Tax Payments (405,911) (49,200) (54,681) (509,792) (7,885) Net Cash Provided (Used) by Noncapital Financing Activities (462,529) (77,272) 3,980,843 3,441,042 (2,364,494) Cash Flows from Capital & Related Financing Activities: Cash Proceeds from Sale of Capital Assets - - - - 246,796 Cash Disbursements for Purchases of Capital Assets (604,621) (290,731) (1,182,888) (2,078,240) (3,851,459) Bond/Loan Payments - (724,272) (1,119,540) (1,843,812) (79,376) Bond/Loan Proceeds - - 695,508 695,508 - Contributed Capital - 114,696 - 114,696 (11,347) Assessment Receipts - 438,820 166,849 605,669 - Interest Payments - (525,321) (47,937) (573,258) (18,950) Net Cash Provided (Used) by Capital & Related Financing Activities (604,621) (986,808) (1,488,008) (3,079,437) (3,714,336)

Cash Flow s from Investing Activities: Interest Receipts 892,318 217,107 164,778 1,274,203 644,206

Net Cash Provided (Used) by Investing Activities 892,318 217,107 164,778 1,274,203 644,206

Net Increase (Decrease) in Cash & Cash Equivalents (347,673) 600,123 176,742 429,192 (988,809)

Cash & Cash Equivalents as of January 1 24,246,852 1,236,907 2,791,926 28,275,685 26,466,143

Cash & Cash Equivalents as of December 31 $ 23,899,179 $ 1,837,030 $ 2,968,668 $ 28,704,877 $ 25,477,334

See accompanying notes to the financial statements

62 Thurston County, Washington 2009

Statement of Cash Flows Proprietary Funds For The Year Ended December 31, 2009 Page 2 of 2

Enterprise Funds Othe r Total Internal Solid Grand Enterprise Enterprise Service Waste Mound Funds Funds Funds Reconciliation of Operating Income To Net Cash Provided (Used) by Operating Income: Operating Income $ (709,497) $ 363,991 $ (2,019,502) $ (2,365,008) $ (855,705) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense 836,275 424,236 791,044 2,051,555 4,392,143 (Increase) Decrease in: Customer Account Receivables 2,546 (45,458) (21,173) (64,085) 106,464 Due from Other Funds (51,164) 871,168 59,664 879,668 279,540 Due from Other Government Units - - - - (7,275) Inventories - - - - (17,647) Prepaid Expense - - - - (45,371) Increase (Decrease) in: Accounts Payable 101,196 (165,812) (1,213,206) (1,277,822) (272,786) Due to Other Funds 92,088 (1,029) (47,886) 43,173 (298,772) Due to Other Government Units (773) - - (773) 77 Claims and Judgments - - - - 713,938 Compensated Absences Payable - - (29,812) (29,812) 451,209 Accumulated Landfill Closure (443,512) - - (443,512) -

Total Adjustments 536,656 1,083,105 (461,369) 1,158,392 5,301,520

Net Cash Provided (Used) by Operating Activities $ (172,841) $ 1,447,096 $ (2,480,871) $ (1,206,616) $ 4,445,815

Noncash Investing, Capital, and Financing Activities: Gain on Purchase/Sale Of Capital Assets $ - $ - $ 110,000 $ 110,000 $ 246,796 Loss on Purchase/Sale of Capital Assets $ (28,721) $ - $ - $ (28,721) $ (110,217) Prior Period Adjustment - Reclassification of G O Debt From Governmental to Proprietary $ - $ - $ - $ - $ - Contribution of Capital Assets $ - $ - $ - $ - $ 5,625,712

See accompanying notes to the financial statements

63 Thurston County, Washington 2009

Statement Of Fiduciary Net Assets Fiduciary Funds December 31, 2009

Private Investment Purpose Trust Agency ASSETS Trust Funds Funds Funds

Asse ts: Cash & Pooled Investments $ 253,684,766 $ 2,288,327 $ 15,550,926 Cash and Investments in Trust - - 60,432 Deposits with Fiscal Agent - - 50,000 Investments at Cost 200,000 - - Receivables: Accrued Interest Receivables 75,734 - - Investments at Fair Value: US Agency & Instrumentality Securities (766,061) - -

Total Assets 253,194,439 2,288,327 15,661,358

LIABILITIES

Liabilities: Warrant Payable - - 12,945,555 Accounts Payable - - 108,087 Payroll Payable - - 2,497,284 Due to Other Governments - - 110,432

Total Liabilities - - 15,661,358

NET ASSETS

Investments Held in Trust for Pool Participants 253,194,439 - - Investments Held in Trust for Other Purposes - 2,288,327 -

Total Net Assets $ 253,194,439 $ 2,288,327 $ -

See accompanying notes to the financial statements

64 Thurston County, Washington 2009

Statement of Changes in Fiduciary Net Assets Fiduciary Funds For The Year Ended December 31, 2009

Private Investment Purpose Trust Funds Trust Funds

Additions: Contributions: Additions By Participants $ 1,105,553,232 $ 13,771,461 Trust Revenues 306,050 - Total Contributions 1,105,859,282 13,771,461 Investment Income: Net Increase In Fair Value Of Investments (5,488,481) - Interest, Dividends and Other - 3,057 Total Investment Income (5,488,481) 3,057

Total Additions 1,100,370,801 13,774,518

Deductions: Distributions to Participants 1,115,329,650 12,974,791 Trust Administrative Costs 306,050 - Total Deductions 1,115,635,700 12,974,791

Change in Net Assets Held for Individuals, Organizations and Other Governments (15,264,899) 799,727

Net Assets as of January 1 - Restated 268,459,338 1,488,600

Net Assets as of December 31 $ 253,194,439 $ 2,288,327

See accompanying notes to the financial statements

65 Thurston County, Washington 2009

This Page Intentionally Left Blank

66 Thurston County, Washington 2009

NOTES TO THE FINANCIAL STATEMENTS

Guide to Notes

Year ended December 31, 2009

Note I - Summary of Significant Accounting Policies ...... 68

Note II - Reconciliation of Government Wide and Fund Financial Statements ...... 75

Note III - Stewardship, Compliance and Accountability ...... 76

Note IV - Deposits and Investments ...... 78

Note V – Property Taxes ...... 82

Note VI - Capital Assets and Commitments ...... 84

Note VII - Long-Term and Other Significant Debt ...... 86

Note VIII - Interfund Transactions ...... 95

Note IX - Pension Plans ...... 97

Note X - Risk Management ...... 104

Note XI – Other Post-Employment Benefits ...... 106

Note XII - Joint Ventures/Jointly Governed Organizations ...... 111

Note XIII - Closure And Post Closure Care Costs ...... 114

Note XIV - Other Disclosures ...... 114

67 Thurston County, Washington 2009

NOTES TO THE FINANCIAL STATEMENTS

Year Ended December 31, 2009

Note I - Summary of Significant Accounting Policies

The financial statements of Thurston County have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies are described below:

A. REPORTING ENTITY

The County was incorporated in 1852 and operates under the laws of the state of Washington applicable to counties. As required by the generally accepted accounting principles the financial statements present Thurston County as the primary government. The financial statements do not include any component units for which the County is financially accountable. Thurston County is a statute county, which means the organization of the County is prescribed by state statute. The County has a commissioner form of government with a governing body consisting of three County Commissioners.

B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

The government-wide financial statements consist of the statement of net assets and the statement of activities. These statements report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. 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 and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Our policy is to allocate indirect costs to a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements or a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Under this measurement focus, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

68 Thurston County, Washington 2009

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The County considers revenues to be generally available if they are collected within 60 days of the end of the fiscal period. Expenditures are recorded when the related fund liability is incurred, as under accrual accounting. Exceptions to this rule include redemptions and un-matured interest on general long term debt, which are recognized when due and compensated absences, which are recognized when obligations are expected to be liquidated with expendable available financial resources.

Revenues susceptible to accrual include certain taxes, earned interest, certain charges for services, and intergovernmental revenues, such as grants, where program expenditures are the prime factor determining reimbursement. Revenues such as sales based taxes, fines, licenses, and fees are not considered susceptible to accrual since they are not generally measurable until received. Only the portion of special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the County.

Thurston County reports the following major governmental funds:

 General Fund - is the County’s primary operating fund. It is used to account for all activities of the general government not accounted for in another fund.  Road Fund - accounts for the design, construction, and maintenance of Thurston County roads.  Detention Facility Sales Tax Holding Fund - is a holding fund for local option sales taxes levied to construct adult and juvenile detention facilities.  Jail Capital Projects - accounts for the planning and design of a community corrections and assessment center and for the construction of a minimum bed jail facility.  Debt Holding 2009 – A holding fund for 2009 general obligation debt proceeds pending transfer to construction funds to fund construction of the Accountability Restitution Center, communication system upgrades, and other approved capital projects.  Medic One - accounts for countywide delivery of advanced life support response and transport services.  Public Health and Social Services - accounts for the following services: mental health, developmental disabilities, substance abuse prevention & treatment, children and family, environmental, and personal health.  Real Estate Excise Tax - accounts for proceeds dedicated to capital projects from the one-half percent tax on real property sales in unincorporated Thurston County.

The County reports the following major proprietary funds:

 Solid Waste - accounts for solid waste activities county-wide which primarily includes disposal maintenance and operations of the County’s waste and recovery center.  Grand Mound Water and Wastewater - accounts for maintenance and operations of the Grand Mound water & wastewater systems.

Additionally, the County reports the following fund types:

 Internal Service Funds account for technology acquisition/improvement, building maintenance, equipment acquisition/maintenance, risk management and payroll/benefit administration provided to other departments or agencies of the County on a cost reimbursement basis.  Investment Trust Funds account for external pooled and non-pooled investments held by the County Treasurer on behalf of external participants in the County’s investment program.

69 Thurston County, Washington 2009

 Private Purpose Trust Funds report amounts deposited with the County Clerk through Superior Court trust arrangements and agreements.  Agency Funds are custodial in nature and do not present results of operations or have a measurement focus. These funds account for assets (such as property tax collected on behalf of other governments) that the County holds for others in an agency capacity.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The County has elected not to follow subsequent private-sector guidance.

As a general policy the effect of the interfund activity has been eliminated for the government-wide financial statements. Exceptions to this general policy include exchange or exchange-like transactions for internal services that are normally provided internally or to the public. This excludes internal services of internal service funds since the doubling effect of the cost of these services has already been removed from the financial statements. Amounts reported as program revenues include 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues. General revenues include all taxes, interest earnings, sale of capital assets (if material), and transfers.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Solid Waste, Grand Mound, and Other Enterprise Funds and the County’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal service funds include the payroll and contractual service cost, including other administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the County’s policy to use resources proportionately based on their overall contribution to the total resources of that fund, function or program.

D. ASSETS, LIABILITIES AND EQUITIES

1. Cash Deposits and Investments

The County’s cash and cash equivalents are considered to be cash on hand and demand deposits. The County pools internal and external cash and investments into one pool for investment purposes with the County Treasurer, except as otherwise requested, in order to facilitate the management of cash. For the purposes of the statement of cash flows, the County considers all amounts invested in its cash pool to be cash and cash equivalents. All other investments, if applicable, are reported as investments at cost.

70 Thurston County, Washington 2009

It is the County’s policy to invest all temporary cash surpluses. At December 31, 2009, all cash and cash equivalents were cash on hand and demand deposits with average maturities as noted in Note IV. This amount is classified on the balance sheet as cash and pooled investments in various funds. The interest on these investments is allocated to the various funds on an average daily balance basis. The amounts reported as cash and cash equivalents also include compensating balances maintained with certain banks in lieu of payments for services rendered. The average compensating balances maintained during the year was approximately $3,785,000.

2. Receivables

Taxes receivable consist of delinquent property taxes and related interest and penalties. See Note V – Property Taxes. The County considers property taxes to be available if they are collected within sixty days after year end. However, the County does not accrue these amounts as revenue unless they are material to the amount collected or to the outstanding balance.

Accrued interest receivable includes interest and penalties on property taxes, interest on investments and on current special assessments at year-end. The County considers interest on investments to be available if they will be collected within sixty days after year-end.

Special Assessment receivables consist of current and delinquent assessments and related penalties and interest against the property benefited. Long term special assessments are outstanding unbilled special assessments and are recorded when levied. Special assessments and utility billings are collectible through liens on property. Therefore, no estimates of uncollectible amounts are established. In the governmental funds, special assessment receivables are offset by deferred revenues and are for county road improvement districts, public health assessments, and to fund the countywide noxious weed program. In enterprise funds, they represent receivables for the replacement of a wastewater facility and construction of a wastewater collection and water distribution system within the County. To fund these assessments in the enterprise funds, the County has issued both General Obligation debt and Special Assessment debt. See Note VII for more information about the County’s debt.

Customer account receivables are amounts owed from private individuals or organizations for County services which primarily includes receivables for court, incarceration and public health services. Customer account receivables are considered to be available if they are expected to be collected within twelve months after year-end. Receivables include amounts owed for which billings have not been prepared and are recorded net of estimated uncollectible amounts.

3. Amounts Due to and from Other Funds and Governments, Interfund Loans and Advances Receivable

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “interfund loans receivable/payable” or “advances to/from other funds.” Advances to other 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 expendable available financial resources. A separate schedule of interfund loans receivable and payable is furnished in Note VIII - Interfund Receivables and Payables. All other outstanding balances between funds are reported as “due to/from other funds.”

Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Interfund balances between governmental funds and interfund balances between proprietary funds have been eliminated and are not included in the government-wide statement of net assets.

71 Thurston County, Washington 2009

Due to and from other funds and governments is reported as a cash flow change impacting operating activities in the statement of cash flows. However, cash flows from governmental receivables are treated differently for enterprise and internal service funds in the statement of cash flows. Due from other governments for enterprise funds is generally reported as a cash flow change impacting grant cash proceeds from non-capital financing activities. Due from other governments for internal service funds is generally reported as a cash flow change that impacts operating activities.

4. Inventories and Prepaid Items

Inventories are assets held for internal consumption or for resale. Any material inventory remaining at year- end is included in the balance sheet of the appropriate fund.

The purchase method, where the cost is expended when the item is purchased, is used in governmental funds, except for the Roads Fund, where the perpetual inventory method is used. The perpetual inventory method capitalizes the cost when inventory is purchased and then expends the cost when the item is consumed. Inventories recorded in the Roads Fund are stated at cost on a moving weighted average basis. Enterprise funds had no reportable material inventories at year end.

Prepayments are payments in advance of the receipt of goods and services in an exchange transaction and are recorded as an expenditure or expense only when consumed. These payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government wide and fund financial statements. These items primarily include prepaid rents for computer software.

5. Capital Assets and Depreciation

Capital assets, which include land, buildings, improvements to land and buildings, vehicles, machinery, equipment, easements, construction in progress and infrastructure assets and all other tangible and intangible assets used in operations, are reported in the applicable governmental or business-type columns in the government-wide financial statements. Infrastructure assets are usually stationary and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure include roads, bridges, drainage systems, sidewalks, trails and paths, and water and sewer systems. Capital assets are defined by the County as assets with an initial, individual cost of $5,000 or more, including ancillary costs, with an estimated useful life in excess of one year.

Capital assets are valued at cost where historical records are available and at estimated historical cost where no records exist. Donated capital assets are valued at their estimated fair value at the date of donation.

In June 1999 Government Accounting Standards Board (GASB) issued Statement #34, which required the inclusion of infrastructure capital assets in local government’s basic financial statements. In accordance with this Statement, the County has recorded the value of all infrastructure assets acquired after July 1, 1980 in its statement of net assets. In certain instances, engineering estimates, as well as annual reports of the County Road Administration Board and Washington State Department of Transportation were used to value the estimated historical costs of assets. In other instances, historical costs were derived by estimated historical costs on a discounted and depreciated current replacement value basis. Infrastructure acquired prior to June 30, 1980, except for roads right of way and easements, is not reported.

Improvements to capital assets that materially add to the value or extend the life of the asset are capitalized. Other repairs or normal maintenance are expensed. Outlays for capital assets and improvements are capitalized as projects are constructed. The net book values of replaced and depreciated components are removed from the system when replaced or when fully depreciated. The cost of normal maintenance and repairs that does not significantly impact asset value or materially extend the assets’ life is expensed in the year incurred.

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Capital assets are depreciated using the straight-line method over the following estimated useful lives:

Asset Class Estimated Useful Life Machinery & Equipment 3 – 20 years Improvements 10 – 40 years Buildings 10 – 40 years Infrastructure 20 – 40 years

Interest expense was not capitalized during asset construction since interest costs were offset by interest earnings on the investments of funds for these projects.

Machinery and equipment purchased on capital leases are treated as capital assets, indicating a constructive or actual transfer of the benefits and risks of ownership to the County, and are valued at the lesser of the fair value of the leased property or the present value of the minimum lease payments required by contract.

6. Long-Term Debt (See Note VII – Long Term and Other Significant Debt)

Revenue bonds and other long term liabilities directly related to and financed from proprietary funds are accounted for in the respective proprietary funds. All other County long-term debt is reported in the governmental column in the entity-wide statement of net assets. Bond premiums and discounts, and issuance costs are deferred and amortized over the life of the bonds using the straight-line interest method since it is not materially different than the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs in the current period. The face amount of debt is reported as other financing sources. Issuance costs, whether or not withheld from the actual debt proceeds, is reported as debt service expenditures. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance are reported as other financing uses.

Amounts reserved for the current portion of long-term debt is shown as a reservation of fund balance in the fund financial statements and a restriction of fund balance in the statement of net assets.

7. Deferred Charges, Deferred Revenues, and Unearned Revenue

Deferred charges in the government wide financial statements defer expenditures for debt issuance which are amortized over the life of the respective bond issues.

Deferred revenues in the fund financial statements include amounts collected before revenue recognition criteria are met and receivables for delinquent taxes that are not yet available under the modified accrual basis of accounting. Unearned revenues in the government-wide financial statements represent resources received but not yet earned.

73 Thurston County, Washington 2009

8. Fund Equity

Fund equity is recognized as fund balance in governmental funds, and as net assets in proprietary funds and entity wide statements. In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Unless otherwise noted, fund balances (deficits) are unreserved and undesignated.

A portion of the County’s net assets are subject to external legal restrictions on how they may be used and therefore are not available for general spending at the discretion of the County. These are considered restricted net assets. Fees and charges for services (except for the General Fund), as reported in the entity wide statements, are usually considered to be restricted since they have been charged or levied for a specific purpose or use. Operating/capital grants are also considered to be restricted if the use of the proceeds is restricted by the grantor. Solid waste cash and investments are restricted to fund a 30 year landfill post-closure care period (see Note XIII – Closure and Post Closure Care Costs). Solid waste net assets restricted for this purpose comprise the remainder of the net asset balance. An amount equal to these restricted assets, less any related liabilities, is reported as restricted assets on the government wide statement of net assets.

Investment in capital assets, net of related debt includes all capitalized assets less outstanding obligations for current and long term bonds and notes payable related to capital investments. These amounts are adjusted for unexpended bond proceeds, other borrowings, negative equities and non-capital financings as noted below.

Reconciliation of Investment In Capital Assets, Net of Related Debt

Governmental Business-Type Activities Activities

Capital Assets, Net of Depreciation $ 435,497,051 $ 37,695,440 Less: Long and Short Term Notes & Bonds Payable (81,053,862) (11,021,871) 2009 Debt Holding Fund Balance (unspent debt proceeds) 13,041,824 -

Investment In Capital Assets, Net of Related Debt $ 367,485,013 $ 26,673,569

74 Thurston County, Washington 2009

Note II - Reconciliation of Government Wide and Fund Financial Statements

A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Assets

Account balances in the governmental fund balance sheet are reconciled to balances in the government- wide statement of net assets within the accompanying “Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets” statement. Three line items in this reconciliation are described and explained in more detail below.

The first line item adjustment, as detailed below, was for $374,249,201 because the cost of capital assets, which is expended in governmental funds, is deferred to future periods in the statement of net assets:

Governmental Net Book Value - End of Prior Year $ 347,627,261 Reclassification of Governmental Assets as Internal Service Assets (5,614,365) Gains (Losses) on Dispositions of Capital Assets (140,687) Governmental Capital Outlays 40,786,693 Governmental Depreciation Expense (8,409,701)

Governmental Net Book Value - End of Current Year $ 374,249,201

The second line item adjustment, as detailed below, was for $80,689,312 because long-term debt, which is not reported in governmental funds, is reported in the statement of net assets:

Governmental Debt - End of Prior Year $ 40,340,274 Bond Proceeds 42,765,000 Debt Principal Payments (2,701,669) Lease Financing Proceeds And Adjustments 78,239 Amortization of Premium and Refunding Deferral 207,468

Computed Governmental Debt - End of Current Year $ 80,689,312

75 Thurston County, Washington 2009

The third line item adjustment, as detailed below, was for $83,671,032 because assets and liabilities of internal service funds, which are separately reported in proprietary fund statements, are included and combined with governmental balances in the statement of net assets:

Net Assets - End of Prior Year $ 80,598,749 Reclassification of Governmental Assets as Internal Service Assets 5,614,365 Net Transfers In/Out (2,494,174) Net Profit (47,908) Net Assets - End of Current Year $ 83,671,032

Cash $ 25,477,334 Capital Assets 64,585,906 Other Assets 1,022,282 Claims and Judgments Payable (4,414,807) Other Liabilities (2,999,683) Net Assets - End of Current Year $ 83,671,032

B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances and the Government-Wide Statement of Activities

Account balances in the governmental income statement (statement of revenues, expenditures and changes in fund balances) are reconciled to balances in the government-wide statement of activities within the accompanying “Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities” statement. These line item reconciliations are available and reported in detail within this statement.

Note III - Stewardship, Compliance and Accountability

BUDGETARY INFORMATION

1. Scope of Budget

Annual appropriated budgets are adopted for all County funds in accordance with the provisions of the Revised Code of Washington (RCW), as interpreted by Budgeting, Accounting, and Reporting System (BARS) of the State of Washington and on a basis consistent with generally accepted accounting principles. Appropriations are authorized at the fund level for all funds, except the General Fund, where expenditures may not exceed appropriations at the department level. The budgets constitute the legal authority for expenditures at these levels. All appropriations lapse at year-end.

During the budget process, each County official submits detailed estimates of anticipated revenues and expenditure requests for the subsequent budget year. The data is compiled and made available for public comment beginning the first Monday in October. A recommended budget is submitted to the Board of County Commissioners in the third week of November. Public hearings are held the first week of December and the final budget is adopted, through the passage of a resolution, shortly thereafter.

76 Thurston County, Washington 2009

2. Amending the Budget

The Board of County Commissioners must approve any revisions that increase the total appropriation of all County funds and General Fund departments. These changes must be approved through a resolution by a majority of the Board of County Commissioners after holding a public hearing. General Fund departments or other County funds may transfer budget amounts between certain expenditures without approval of the Board as long as they do not exceed their total department/fund budget.

The budget amounts shown in the financial statements are the final authorized amounts as revised during the year. The financial statements contain the original and final budget information. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable for the fiscal year.

3. Excess of Expenditures Over Appropriations

Expenditures, including transfers out, for the Regional Athletic Complex exceeded budget by $8,101. This fund was closed out in 2009 and the remaining fund equity was transferred to other funds. The close out and transfer of fund equity was specifically authorized by Commissioner approved resolutions and is in compliance with County budget policies.

The Investment Administration, Tax Refund and Treasurer’s M & O Funds were excluded from the special revenue combining schedules of Revenues, Expenditures and Changes in Fund Balance - Budget (GAAP Basis) and Actual because these funds are not statutorily required to have budget authority and County budget policies do not require budgets for these funds.

4. Deficit Fund Equity

The Jail Capital Projects had a $1,423,000 deficit fund balance at December 31, 2009. This deficit fund balance will be fully funded by unspent proceeds from the 2009 Debt Holding Fund.

The following proprietary funds had deficit net assets at December 31, 2009: Land Use and Permitting (name changed from Development Services in 2009), ($466,458) and Enterprise Administration, ($409,795). Additional fee increases, operating transfers and expenditure reductions will eliminate the carry forward effects of deficit net assets from 2009.

77 Thurston County, Washington 2009

Note IV - Deposits and Investments

The Thurston County Treasurer, acting in their legal capacity as Treasurer for the County and other taxing districts, receipts, disburses and invests all cash.

A. DEPOSITS

All receipts received by the Treasurer are deposited into qualified bank depositaries as specified by the Washington Public Deposit Protection Commission (PDPC). All deposits, including money markets and certificates of deposits are entirely covered by federal depositary insurance (FDIC) or by collateral held in a multiple financial institution collateral pool administered by the Washington PDPC. The PDPC is a statutory authority established under Chapter 39.58 of the Revised Code of Washington. PDPC coverage is of the nature of insurance pursuant to the Governmental Accounting Standards Board Statement No. 3. All deposits held at December 31, 2009 and throughout the year were insured or collateralized with securities held by the County Treasurer or by their agent in the County Treasurer’s name. Total undistributed cash deposits at December 31, 2009 were $16,002,756.

B. INVESTMENTS

Investments are governed by State statute and County investment policy. All investment instruments are those allowed by statute, which include U.S. Treasury Notes, Federal Agencies, bankers’ acceptances, short-term commercial paper, money market account and the State Treasurer’s Local Government Investment Pool (LGIP). There is no statutory regulatory oversight of the LGIP other than annual audits through the Washington State Auditor’s Office. The fair value of County shares in the LGIP is dollar for dollar equal to the value of pool shares.

The investment policy dictates that all investment instruments be transacted on the delivery vs. payment basis. Union Bank of California acts as safekeeping agent for the Thurston County Treasurer. During 2009 the County did not buy or own any securities earning interest at a rate which varied depending on an underlying rate or index.

As of December 31, 2009, the County’s investment values and maturities for pool and individual fund investments are as follows:

Weighted Average Investment Type Book Value Maturity (Years)

Pool Investments: State Treasurer's LGIP $ 68,000,000 0.0 Money Market Account 20,000,000 0.0 U.S. agencies 323,312,690 4.5

Pool Investments 411,312,690 3.5

Total Investments $ 411,312,690

78 Thurston County, Washington 2009

The interest rate, credit and concentration risks are described below:

Interest Rate Risk – The adopted investment policy does not limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk – State law and the adopted investment policy limit investment in securities that have one of the three highest ratings of a national rating agency at the time of investment.

The ratings of debt securities as of December 31, 2009 are:

Debt Security S&P Rating Fannie Mae (Federal National Mortgage Association) AAA Freddie Mac (Federal Home Loan Mortgage Corporation) AAA Federal Home Loan Bank AAA Federal Farm Credit Bank AAA Washington State Investment Pool Not Rated

Concentration of Credit Risk – The adopted investment policy requires that no more than 25% of the investments will be in a single security type, with the exception of U.S. treasury and agency securities and the State Local Government Investment Pool. The investments held are in compliance with this requirement.

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A reconciliation of pool investments, investments, cash, cash deposits and pool accruals to the fund and entity wide statements is as follows:

Reconciliation of Deposits and Investments December 31, 2009

Cash & Pool Total Investments Investments Composition of Cash & Investments: State Treasurer's Local Govt. Investment Pool (LGIP) $ 68,000,000 $ 68,000,000 $ - Money Market Account 20,000,000 20,000,000 - U.S. Agency & Instrumentality Securities 323,312,690 323,112,690 200,000 Total Investments 411,312,690 411,112,690 200,000

Deposits With Financial Institutions 16,002,756 16,002,756 - Pool Accruals and Fiscal and Petty Cash 279,182 279,182 - Clerk's Trust Funds 2,288,327 2,288,327 - Total Cash & Investments 429,882,955 429,682,955 200,000 Net Increase (Decrease) in Fair Value of Investments (766,061) (766,061) - Total Reported Cash & Investments $ 429,116,894 $ 428,916,894 $ 200,000

Reconciliation to Statements: Statement of Net Assets: Cash & Pooled Investments - Unrestricted $ 136,294,754 Cash & Pooled Investments - Restricted 21,678,016 Statement of Fiduciary Net Assets: Cash & Pooled Investments 253,684,766 Investments at Cost 200,000 Net Increase (Decrease) in Investment Fair Value (766,061) Private Purpose Trust Funds 2,288,327 Agency Funds 15,550,926 Accrued Interest, Trust & Fiscal Cash 186,166 Total Reported Cash & Investments $ 429,116,894

80 Thurston County, Washington 2009

A summary of current and restricted assets for pooled investments and investments is as follows:

Current and Restricted Assets December 31, 2009

Current Restricted Total Assets Assets Pooled Investments $ 411,112,690 $ 389,715,415 $ 21,397,275 Investments 200,000 - 200,000 Total $ 411,312,690 $ 389,715,415 $ 21,597,275

C. THURSTON COUNTY INVESTMENT POOL (TCIP)

The Thurston County Investment Pool (TCIP) operates on an amortized cost-book value basis. The County Treasurer, the County Auditor and the Chairman of the Board of County Commissioners, as the statutory County Finance Committee, perform oversight of the pool’s performance. There are no legally binding guarantees for the TCIP. Authorized investments for the TCIP are the same as investments held outside of the pool. These are defined in statute and discussed in Note IV (B). The TCIP also has holdings in the State Treasurer’s Local Government Investment Pool (LGIP). The LGIP operates in a manner consistent with SEC Rule 2a7. As a 2a7-like pool, investments in the LGIP are reported at amortized cost.

All funds deposited in the TCIP are available to the participant at full face value without regard to current market values of the investment pool. Earnings distributions, including any realized transactions in the pool, are distributed monthly, calculated on the average daily balance of the participant’s cash balances. The Thurston County Treasurer, by law, is the Treasurer of most local governments and districts within the County, including schools, fire and library districts. These districts do not have a legal option to have their cash handled by other than the County Treasurer.

The TCIP experienced a net decrease in the fair value of the investments during 2009, as market interest rates decreased. At 12/31/2009, the market value of investments was $766,061 lower than the amortized cost. These unrealized losses will not be recognized in the various funds as management intends to hold these investments to maturity. During 2009, TCIP sold one investment with a total realized gain of $45,502.

Fair value of the TCIP is reviewed by the County Treasurer, on an ad hoc basis, and monthly by the County Finance Committee. Fair value is determined using information from our safekeeping agent, Union Bank of California and with “Bloomberg”, an on-line financial services system.

Participation in the TCIP is voluntary. Districts do have the option to participate in the TCIP or they can have the Treasurer manage their cash and investments outside of the TCIP by requesting specific investment amounts and maturity dates.

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A condensed statement of net assets and statement of changes in net assets for the external portion of the investment trust pool and the Clerk’s private purpose trust fund at December 31, 2009 is reported in the following schedule:

Condensed Statement of Net Assets December 31, 2009

Cash and Pooled Investments - Investment Trust $ 252,918,705 Cash and Pooled Investments - Private Purpose Trust 2,288,327 Investments at Cost 200,000 Accrued Interest Receivables $ 75,734 Total Assets 255,482,766 Total Liabilities - Net Assets Held in Trust for Pool Participants $ 255,482,766

Condensed Statement of Changes in Net Assets December 31, 2009

Changes in Net Assets Resulting from Operations $ 13,389,420 Earnings Distribution to Participants (13,389,420) Changes in Net Assets Resulting from Depositor Transactions (14,465,172) Net Assets Available (14,465,172) Net Assets Beginning of Year 269,947,938 Net Assets End of Year $ 255,482,766

External Pool $ 253,194,439 Private Purpose Trust funds 2,288,327 Total Net Assets Available $ 255,482,766

Note V – Property Taxes

The County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities.

Property Tax Calendar Taxes are levied and become an enforceable lien against the January 1 properties. April 30 First of two equal installment payments is due. October 31 Second installment is due.

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Property taxes are recorded as receivables when levied, but revenue is not recognized until collected. No allowance for uncollectible taxes is established because delinquent taxes are considered fully collectible. An enforceable lien attaches at the point of levy. Interest accrues on delinquent taxes at a rate of 12% per annum. Penalties of 3% are assessed in June and 8% in December, in the first year of delinquency.

The County is permitted by law to levy up to a combined amount of $4.05 per $1,000 of assessed valuation. A maximum of $1.80 per $1,000 of assessed valuation may be levied on all property in the County for general government services. A maximum of $2.25 per $1,000 of assessed valuation may be levied on property in unincorporated Thurston County for the County Road Fund for road construction and maintenance. However a county is authorized to increase its levy from $1.80 to a rate not to exceed $2.475 per $1,000 of assessed value for general county purposes if the total levies for both the County and the County Road District do not exceed $4.05 per $1,000 of assessed value, and no other taxing district has its levy reduced as a result of the increased County levy. These levies may be reduced subject to three limitations:

1. Initiative 747 limits annual regular property tax increases to 1% or the Implicit Price Deflator, whichever is less. An increase above 1% is allowed only with voter approval. The 1% limit excludes increases due to the addition of new construction and state assessed utility increases.

2. The Washington State Constitution limits total regular property taxes to 1 percent of true and fair market valuation. This would equate to a regular levy rate of $10 per $1,000 of value if the property were assessed at its true and fair value. If taxes of regular districts (excluding the Port & PUD) exceed this amount, the junior taxing districts taxes are reduced first and then the other entities are proportionately reduced until the total is at the 1 percent limit.

3. Most taxing districts are authorized by state law to levy a certain rate each year without approval by the voters; these are commonly referred to as regular levies. The aggregate levies of junior taxing districts and senior taxing districts, other than the state, shall not exceed five dollars and ninety cents per thousand dollars of assessed valuations (RCW 84.52.043). At the county level this limitation does not apply to the Conservation Futures or Medic One levies.

The County may voluntarily levy taxes below the legal limit. Special levies approved by the voters are not subject to the above limitations.

The following identifies the tax rates levied in 2008 for collection in 2009:

Levy In Dollars Assessed Total Per Thousand Value Levy County $ 1.0431 $ 30,117,613,424 $ 31,415,653 Roads 1.1841 $ 15,815,947,622 18,727,062 $ 2.2272 $ 50,142,715

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Note VI - Capital Assets and Commitments

A. CAPITAL ASSETS

Capital assets activity for the year ended December 31, 2009 was as follows:

Beginning Ending GOVERNMENTAL TYPE ACTIVITIES Balance Balance 01/01/09 Increases Decreases 12/31/09 Capital Assets - Non-Depreciable: Land $ 251,794,316 $ 2,605,223 $ - $ 254,399,539 Construction in Progress 15,683,594 34,089,783 1,622,115 48,151,262 Capital Assets - Non-Depreciable 267,477,910 36,695,006 1,622,115 302,550,801

Capital Assets - Depreciable: Buildings 73,121,264 6,554,175 6,302,285 73,373,154 Improvements Other Than Buildings 4,960,075 1,610,031 47,699 6,522,407 Machinery & Equipment 42,789,783 9,370,682 6,451,962 45,708,503 Infrastructure 121,326,591 2,666,432 2,567,023 121,426,000 Original Cost 242,197,713 20,201,320 15,368,969 247,030,064 Less Accumulated Depreciation: Buildings (19,611,710) (2,004,836) (99) (21,616,447) Improvements Other Than Buildings (2,138,283) (312,171) (2,236) (2,448,218) Machinery & Equipment (27,693,631) (4,044,822) (2,756,867) (28,981,586) Infrastructure (56,540,019) (6,231,691) (1,734,147) (61,037,563) Accumulated Depreciation (105,983,643) (12,593,520) (4,493,349) (114,083,814) Capital Assets - Depr, Net 136,214,070 7,607,800 10,875,620 132,946,250

Total Orginal Cost 509,675,623 56,896,326 16,991,084 549,580,865 Total Accumulated Depreciation (105,983,643) (12,593,520) (4,493,349) (114,083,814) Governmental Capital Assets, Net $ 403,691,980 $ 44,302,806 $ 12,497,735 $ 435,497,051

Depreciation Expense was charged to funtions as follows: General Government $ 524,869 Public Safety 830,472 Utilities and Environment 2,605 Transportation 6,281,985 Economic Environment 5,574 Health and Human Services 38,735 Culture and Recreation 517,139 Subtotal 8,201,379

In addition, depreciation on capital assets held by the County's internal service funds is charged to the various functions based upon their usage of the assets. 4,392,143

Total Governmental Activities Depreciation Expense $ 12,593,522

84 Thurston County, Washington 2009

Business Type Activities for the year ended December 31, 2009 was as follows:

Beginning Ending BUSINESS TYPE ACTIVITIES Balance Balance 01/01/09 Increases Decreases 12/31/09 Capital Assets, not being depreciated: Land $ 1,790,309 $ 5,702 $ - $ 1,796,011 Construction In Progress 6,655,178 1,969,615 3,181,552 5,443,241 Total Capital Assets, not being depreciated 8,445,487 1,975,317 3,181,552 7,239,252

Capital Assets, being depreciated: Buildings 22,626,758 - - 22,626,758 Improvements other than buildings 33,381,027 2,382,224 - 35,763,251 Machinery & Equipment 4,546,790 1,054,682 26,456 5,575,016 Infrastructure - - - - Total Capital Assets, being depreciated 60,554,575 3,436,906 26,456 63,965,025

Less Accumulated Depreciation For: Buildings 5,573,095 626,698 - 6,199,793 Improvements other than buildings 23,178,798 1,062,708 - 24,241,506 Machinery & Equipment 2,709,781 362,149 4,392 3,067,538 Infrastructure - - - - Total Accumulated Depreciation 31,461,674 2,051,555 4,392 33,508,837

Total Capital Assets being depreciated, net 29,092,901 1,385,351 22,064 30,456,188 Business Type Activities Capital Assets, net $ 37,538,388 $ 3,360,668 $ 3,203,616 $ 37,695,440

Depreciation expense was charged to functions as follows:

Solid Waste $ 836,275 Water 281,989 Sewer 496,071 Stormwater 375,839 Development Services 61,381

Total $ 2,051,555

85 Thurston County, Washington 2009

B. CONSTRUCTION COMMITMENTS

Thurston County has the following active construction commitments, including the Accountability and Restitution Center and Tilley Master Plan project, as of December 31, 2009:

Remaining Project Spent-to-Date Commitment

Accountability and Restitution Center $ 33,730,542 $ 9,462,818 Tilley Master Plan 495,878 2,927,684 Tolmie Apartments (Renovations) 103,896 - Deschutes Cove Apartments (Renovations) 146,967 - City of Tenino (Homeowner Rehabliltation) 194,226 - $ 34,671,509 $ 12,390,502

These projects are financed with general obligation bonds which are then repaid with sales and real estate excise taxes.

Note VII - Long-Term and Other Significant Debt

A. DISCLOSURES ABOUT EACH SIGNIFICANT DEBT INCURRED

1. General Obligation Bonds

The County issues general obligation bonds to provide funds for the acquisition, construction, and improvement of capital facilities, and major equipment purchases. General obligation bonds have been issued for both general government and proprietary activities. The proprietary portion of general obligation debt is reported in proprietary funds because repayments will eventually come from proprietary fund revenues. General obligation bonds are direct obligations and pledge the full faith and credit of the government. Payments on these bonds are funded from voter approved levies, real estate excise tax fees and proprietary revenues.

1999 Grand Mound Limited General Obligation Bonds of $11,720,000 were issued in annual principal installments of $250,000 to $1,300,000 beginning in 2004 and running through 2019. The issue is serviced by the Grand Mound Debt Service Redemption Fund. Proceeds were used for constructing and equipping Grand Mound water and wastewater facilities. A portion of this debt is being used to finance a Special Assessment recorded in the Grand Mound Debt Service fund. The bonds bear an interest rate of 5.0% to 5.6%. $7,500,000 was refunded with 2005 Advanced Refunding Bonds. The remaining outstanding balance as of December 31, 2009 was $1,800,000.

2002 Limited General Obligation Bonds of $10,635,000 were issued in annual principal installments of $320,000 to $790,000 beginning in 2002 and running through 2022. Proceeds were used to payoff the 2000 General Obligation Bonds and for improvements to various county facilities. The bonds bear an interest rate of 4.0% to 5.13% with $7,510,000 outstanding as of December 31, 2009.

86 Thurston County, Washington 2009

2004 Limited General Obligation Bonds of $11,000,000 were issued in 2004. The proceeds were used to acquire property and for improvements to various county facilities including: a) acquiring land to construct a jail facility, b) expanding the county/regional park system, c) acquiring a building adjacent to the courthouse to ease overcrowding and relieve existing space problems and d) replacing the County’s 20-year old central phone system. The bonds bear an interest rate of 2.5% to 4.50% semi annually with annual principal installments from $400,000 to $800,000 a year. The term of the bonds is 20 years with the final payment due in 2024. The balance at December 31, 2009 was $9,060,000

2005 Limited General Obligation Bonds of $26,135,000 were issued in 2005. The bonds were used as follows: $15,700,000 was used for a partial advance refunding of $16,175,000 of outstanding 1997 bonds and $7,510,000 was used for an advance refunding of $7,500,000 of outstanding 1999 bonds. The other portion of the issue amounting to $2,925,000 will be utilized to finance park acquisitions and other capital improvements. The bonds bear an interest rate of 3.0% to 5.0% semi annually with annual principal installments ranging from $100,000 to $3,000,000 a year. The term of the bonds is 20 years with the final payment due in 2025. The balance at December 31, 2009 was $23,270,000.

2007 Limited General Obligation Bonds of $5,000,000 were issued in 2007. The bonds are being used to fund a second county jail. The term of the bonds is 20 years with the final payment due in 2027. The bonds bear interest rates of 3.75% to 4.0% payable semi-annually with annual principal installments ranging from $125,000 to $375,000 a year. The balance at December 31, 2009 was $4,705,000.

2009 Limited General Obligation Bonds of $42,765,000 were issued in 2009. The bonds are being used to fund construction of the Accountability Restitution Center, communication system upgrades, and other approved capital projects. The term of the bonds is 20 years with the final payment due in 2029. The bonds bear interest rates of 3.0% to 5.0% payable semi-annually with annual principal installments ranging from $755,000 to $3,130,000 a year. The balance at December 31, 2009 was $42,765,000.

2. Loans and Contracts Payable

The County has entered into an agreement with the Community Trade and Economic Development of the State of Washington (renamed to Department of Commerce in 2010), for three loans from the State of Washington, Public Works Trust Fund. The loans are to finance in part the construction of the Olympic View drain field and the Grand Mound water corrosion control project. The County has agreed to repay the Public Works Trust Fund loans from water and sewer utility revenues, general obligation tax assessments, and other available County monies.

Grand Mound-Water has a Public Works Trust Fund loan that is not to exceed $37,358 with an interest rate of 2% per annum. Yearly loan payments are due on July 1 and are equal to 1/4th of the principal balance plus interest on the unpaid balance of the loan starting in 2007. The term of the loan is for five years. The balance at December 31, 2009 is $9,339.

87 Thurston County, Washington 2009

The Community Loan Repayment Funds (Enterprise Funds) entered into seven state revolving fund (SRF) loan agreements with the State of Washington Department of Ecology to create a community loan program to provide low interest loans for the repair of failing on-site septic systems. The loan programs are 80% federal from the Environmental Protection Agency, and 20% State from the Department of Ecology. The first loan is not to exceed $300,000 with an interest rate of 5% per annum. Repayment began in 1996. The term of the loan is for twenty years. The balance at December 31, 2009 is $95,767. The second loan is not to exceed $200,000 with an interest rate of 0%. The term of the loan is for twenty years. The balance at December 31, 2009 is $49,681. The third loan is not to exceed $200,000 with an interest rate of 4.3%. Repayment began in 2003. The term of the loan is for twenty years. The balance at December 31, 2009 is $107,991. A fourth loan began in 2000 and is not to exceed $100,000 with an interest rate of 0%. Repayments began in 2003. The balance at December 31, 2009 is $14,545. During 2002 a fifth loan began with borrowing not to exceed the value of $150,000 and an interest rate of 1.5%. Repayment began after project completion on December 31, 2005. The balance as of December 31, 2009 is $81,374. The sixth loan is not to exceed $200,000 with an interest rate of 1.5%. Repayment began in 2009. The term of the loan is for twenty years and the balance at December 31, 2009 was $167,752. The seventh loan is not to exceed $250,000 with an interest rate of 2.6%. Repayment will begin when the draws are substantially complete. The term of the loan is for twenty years and the balance at December 31, 2009 was $50,244.

Water and Waste Management entered into a state revolving fund (DWSRF) loan agreement with the State of Washington Department of Community Development to construct a corrosion control system for the Grand Mound water system in 2006. The term of the loan is for 20 years and the amount to be financed is $132,518 with an interest rate of 1%. The balance at December 31, 2009 was $87,806.

Communications entered into an agreement with Government Capital Corporation to fund a new computer aided dispatch system during 2003. Principal payments began in 2003, and with a 2009 principal payment of $259,611, the amount has been fully paid as of December 31, 2009.

3. Leases a. Capital Lease Liabilities

The County has entered into the transactions that are recorded as a capital lease purchases. These long- term contracts incorporate some or all of the benefits and risks of ownership. These lease agreements qualify as capital leases that recognize the present value of future minimum lease payments at the inception of the lease. Leases payable totaled $385,229 at December 31, 2009.

The future minimum lease obligations and net present value of minimum lease payments for assets acquired through capital leases as of December 31, 2009 were as follows:

Governmental Activities Business Type Activities

Machinery & Equipment $ 569,143 $ 110,080 Less: Accumulated Depreciation (262,899) (31,095) Present Value of Minimum Lease Payments 306,244 78,985 Plus amount representing interest 42,966 10,408 Total minimum lease payments $ 349,210 $ 89,393

88 Thurston County, Washington 2009 b. Operating Lease Liabilities

The County has lease commitments for leases of buildings and office space that are cancelable and non- cancelable with lease terms primarily from month to month with one that extends to 2016. Operating lease expenditures for the year ended December 31, 2009 were $1,386,202. The future minimum lease payments for these leases are:

Year Amount 2010 $ 1,280,976 2011 $ 576,578 2012 $ 341,998 2013 $ 31,620 2014 $ 32,190 2015-2016 $ 25,236

Total Operating Leases $ 2,288,598

c. Lease Receivables

The County currently leases some of its property to various tenants under long-term cancelable and non- cancelable contracts. The following is an analysis of the County’s investment in property under long-term operating leases as of December 31, 2009:

Governmental Business-Type Activities Activities

Land $ 752,493 $ 134,529 Buildings 6,440,713 496,416 Less: accumulated depreciation (161,889) (14,347) Total invested in long term leases $ 7,031,317 $ 616,598

The county received $187,776 of operating lease revenues from these contracts in 2009. Amounts that will be received in future years under these lease agreements are noted below:

Year Amount 2010 $ 181,433 2011 $ 187,428 2012 $ 139,559 2013 $ 124,961 2014 $ 128,639 2015 $ 107,243

Total Lease Receivable $ 869,263

89 Thurston County, Washington 2009

4. Special Assessment Bonds

The County has also issued special assessment debt for the replacement of a wastewater facility and construction of a wastewater collection and water distribution system within the County. This debt will be repaid from amounts levied against the property owners benefited by this construction. In the event that a deficiency exists because of unpaid or delinquent special assessments at the time a debt service payment is due, the County must provide the resources to cover the deficiency until other resources, for example, foreclosure proceeds, are received. The special assessment debt outstanding is as follows:

In 2004, Water and Waste Management entered into a state revolving fund (SRF) loan agreement with the State of Washington Department of Ecology to create a new Utility Local Improvement District for Tamoshan/Beverly Beach Wastewater Plant Improvements in 2002. The original principal amount was $1,526,507. Repayments began in 2004 and the loan balance at December 31, 2009 was $895,954. The interest rate of the loan is 0% with a 20-year repayment term.

In 1997, Olympic View Debt Redemption Fund (Enterprise Fund) has a Public Works Trust Fund loan, which is not to exceed $110,000 with an interest rate of 5% per annum. Yearly loan payments are due on July 1 and are equal to 1/19th of the principal balance plus interest on the unpaid balance of the loan. The term of the loan is for twenty years. The original principal amount was $94,000. The loan is due in 2016 and has a balance at December 31, 2009 of $24,751.

Annual debt service requirements to maturity for special assessment debt are as follows:

Year Ending December 31 Principal Interest

2010 $ 81,818 $ 1,251 2011 $ 81,818 1,061 2012 $ 81,818 884 2013 $ 81,818 707 2014 $ 81,818 530 2015-2019 $ 398,484 530 2020-2021 $ 113,129 - Totals $ 920,705 $ 4,964

90 Thurston County, Washington 2009

5. Long-term Compensated Absences

Thurston County has traditional and alternative leave plans. Thurston County employees who chose the traditional leave plan earn 12 days of sick leave and 12-22 days of vacation leave per year depending upon the employee’s length of service. A maximum of 140 days of sick leave may be accrued and a maximum of 45 days of vacation may be accrued. County employees who chose the alternative leave plan, earn 18-28 days of annual or personal leave (a combination of sick leave and vacation leave) per year depending upon the employee’s length of service. A maximum of 185 days of personal leave may be accrued. Accumulated unpaid vacation/annual leave is recorded as earned by employees. In the traditional plan, terminating employees are entitled to be paid for unused vacation up to a maximum of 240 hours and, if retiring, half of unused sick leave, to a maximum of 360 hours. Alternative plan employees who terminate are entitled to be paid for unused leave up to 280 hours.

The County reported a liability of $7,351,076 at December 31, 2009 for that portion of unpaid accumulated vacation and personal leave payable in the Statement of Net Assets. This liability includes $6,087,939 for governmental funds, $1,040,781 for internal service funds and $222,356 for enterprise funds. $4,937,809 of this liability is expected to be incurred in 2010. Leave costs are paid from governmental funds that fund the personnel costs for those employees. Payroll, benefits and associated administrative services for enterprise funds administered by the Department of Water & Waste Management are billed to these enterprise funds by two internal service funds. Consequently, balances for compensated absences in these enterprise funds are rolled up into internal service funds which is, in turn, included within governmental activities in the following table and in the statement of net assets. Vested sick leave is not considered material and is not accrued.

6. Other Post Employment Benefits

Thurston County administers two post employment benefit programs that provide primarily post employment medical benefits to retired Thurston County employees. These programs are for retired Law Enforcement Officers and Fire Fighters (LEOFF) under the LEOFF 1 retirement act and for all Thurston County employees through the state managed Public Employees Benefits Board (PEBB). A long term governmental liability of $1,116,733 was recognized for LEOFF 1 benefits in the statement of net assets in 2009. A long term liability of $6,907,474 was also recognized for PEBB benefits in the financial statements. This liability was allocated between the governmental and proprietary funds based on current active full time employees. Consequently, $5,801,687 was recognized in the statement of net assets for governmental and internal service funds and $1,105,787 was recognized for enterprise funds. Note XI contains detailed information on these two post employment benefit programs including the computation of the current accrued cost and the associated long term liability.

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B. CHANGES IN LONG-TERM AND OTHER SIGNIFICANT DEBT

The following is a summary of long-term and other significant debt transactions of the County:

Schedule of Changes in Debt and Other Long-Term Liabilities For The Year Ended December 31, 2009

Retirements Beginning New And Ending Due Within Balance Issues Adjustments Balance One Year

Governmental Activities: Bonds payable: General obligation bonds $ 39,490,001 $ 42,765,000 $ 2,360,978 $ 79,894,023 $ 4,156,494 Deferred amounts: On refunding (570,995) - (33,588) (537,407) (33,588) For issuance premiums 1,207,706 254,239 70,943 1,391,002 80,359 Total bonds payable 40,126,712 43,019,239 2,398,333 80,747,618 4,203,265 Notes/loans payable 321,002 - 321,002 - - Capital leases payable 336,486 94,204 124,446 306,244 111,496 Claims and judgments payable 3,700,869 713,938 - 4,414,807 - Compensated absences 6,820,903 6,333,038 6,025,221 7,128,720 4,779,377 Other post employment benefits (OPEB) 4,928,910 3,003,037 137,988 7,793,959 - Total governmental activities 56,234,882 53,163,456 9,006,990 100,391,348 9,094,138

Business-type activities: Bonds payable: General obligation bonds 10,005,000 - 695,000 9,310,000 750,000 Deferred amounts: On refunding (390,264) - (35,478) (354,786) (35,478) For issuance premiums 442,711 - 40,246 402,465 40,246 Total bonds payable 10,057,447 - 699,768 9,357,679 754,768 Notes/loans payable 1,873,951 66,138 354,882 1,585,207 136,513 Capital leases payable 83,518 - 4,533 78,985 26,404 Compensated absences 304,951 148,678 231,273 222,356 158,432 Other post employment benefits (OPEB) 177,466 58,683 5,900 230,249 - Total business-type activities $ 12,497,333 $ 273,499 $ 1,296,356 $ 11,474,476 $ 1,076,117

Internal Service funds predominately serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the totals for governmental activities. At year end, $1,040,781 of internal service fund compensated absences are included in the amounts above. Internal service funds also reported a capital lease payable for $4,435, general obligation bonds payable of $360,115, and OPEB Payable of $875,538. Claims and judgments are generally liquidated by the Insurance Risk Management Internal Service Fund and compensated absences are liquidated by the funds incurring the liability. Enterprise segment information is not disclosed since revenue streams are not pledged to support proprietary long-term debt.

92 Thurston County, Washington 2009

C. DEBT SERVICE REQUIREMENTS

Annual debt requirements for all outstanding bonded and contractual debt is as follows:

Schedule Of Annual Requirements Debt Payment Schedule As of December 31, 2009

General Obligation Leases Loans/Contracts/Notes Bonded Debt Payable Payable Principal Interest Principal Interest Principal Interest Total

2010 $ 4,090,000 $ 3,967,951 $ 140,935 $ 28,431 $ 136,513 $ 15,618 $ 8,379,448 2011 4,320,000 3,790,589 120,851 15,864 128,398 13,952 8,389,654 2012 4,590,000 3,604,351 79,752 7,135 131,437 18,990 8,431,665 2013 4,980,000 3,405,874 37,991 1,776 141,246 17,257 8,584,144 2014 5,235,000 3,189,124 5,700 166 142,906 15,343 8,588,239 2015-2019 25,875,000 12,810,803 - - 620,660 40,673 39,347,136 2020-2024 20,055,000 7,385,465 - - 234,324 8,793 27,683,582 2025-2029 16,605,000 3,034,668 - - 49,723 1,581 19,690,972 2030-2031 3,454,023 172,500 - - 3,626,523

Total $ 89,204,023 $ 41,361,325 $ 385,229 $ 53,372 $ 1,585,207 $ 132,207 $ 132,721,363

D. ASSETS AVAILABLE FOR DEBT SERVICE

The County is meeting debt service requirements. The County has sufficient assets in a variety of different funds to meet current and future debt service payments. At December 31, 2009, the County had $4,397 available in reserve in governmental debt service funds to service general obligation debt. However, governmental debt will be primarily funded from the $14,530,000 in the Detention Facilities Sales Tax Holding Fund and the $17,488,000 in the Real Estate Tax Fund. At December 31, 2009, the County had $4,050,000 available in reserve for business type debt which includes $3,629,000 in long term special assessment receivables.

E. LEGAL DEBT MARGIN

State law limits Thurston County’s non-voted debt capacity of 1 ½% and voted debt capacity of 2 ½% of the assessed valuation. The capacity amounts are as follows for 2009:

Purpose of Remaining Indebtedness Total Capacity Capacity

General Government $ 438,732,875 $ 336,209,985 (No vote required) General Government $ 731,221,459 $ 628,698,569 (With 3/5-majority vote)

93 Thurston County, Washington 2009

F. CONTINGENT LIABILITY FOR REFUNDED AND DEFEASED DEBT

In prior years, the County issued general obligation refunding (new) bonds to provide resources to purchase U.S. government securities that were placed in an irrevocable trust for the purpose of generating resources for all future debt service payments on the refunded (old) debt. As a result, the refunded bonds are considered to be defeased and the liability for the defeased bonds is not included in the County’s financial statements. Currently the County has one outstanding refunded issue.

Schedule Of Refunded And Defeased Bonds, Assets, And Liabilities As of December 31, 2009

Refunded & Defeased Bonds Outstanding 01/01/09 Increases Decreases 12/31/09 $ 7,500,000 $ - $ - $ 7,500,000

General Obligation Bonds of $26,135,000 were issued in 2005 of which $7,510,000 was used for an advance refunding of $7,500,000 of outstanding 1999 enterprise bonds. The advance refunding of the 1999 bonds resulted in an economic gain of $440,635 with a $567,825 reduction in debt service payments over the next 14 years.

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Note VIII - Interfund Transactions

A. INTERFUND RECEIVABLES AND PAYABLES

Interfund transactions usually involve the exchange of goods and services between funds in a normal business relationship. The composition of interfund receivables and payables in the fund financial statements as of December 31, 2009 is shown in the following table.

Due From Other Funds Due To Other Funds

General Fund $ 540,031 $ 13,576 Detention Facilities Sales Tax Holding - 12,175 Jail Capital Projects - 17,533 Real Estate Excise Tax - 74,033 Roads 26,015 45,972 Medic One - 7,564 Public Health & Social Services 340,071 105,801 Non-Major Governmental Funds 24,244 557,326 Internal Service Funds 360,084 58,032 TOTAL GOVERNMENTAL & INTERNAL SERVICE FUNDS 1,290,445 892,012

Enterprise Funds Solid Waste 742,795 1,064,605 Grand Mound 44,963 17,340 Non-Major Enterprise Funds 50,761 155,007 TOTAL ENTERPRISE FUNDS 838,519 1,236,952

TOTAL COUNTY FUNDS 2,128,964 2,128,964

TOTAL $ 2,128,964 $ 2,128,964

B. INTERFUND LOANS AND ADVANCES

Interfund loans and advances are fund transfers, that are usually interest bearing and will be repaid in future years. Interfund loans are fund transfers for less than a year that are outstanding at year end and advances are fund transfers for more than one year. The following advances were outstanding as of December 31, 2009:

1. The Detention Facilities Sales Tax Holding Fund advanced $6,000,000 at a 3% interest rate to the General Fund in March of 2009. The entire advance, including $195,000 of accrued interest, was repaid in April of 2010.

2. The Roads Fund advanced $800,000 to the Development Services Fund in 2009. There is a five year repayment period starting in 2009 and ending in 2013. The advance bears an interest rate of 3% with monthly payments of $15,587 throughout the repayment period. The remaining balance at December 31, 2009 was $689,252.

95 Thurston County, Washington 2009

C. INTERFUND TRANSFERS

Interfund transfers are subsidies or contributions provided by one fund to another fund with no corresponding promise for repayment. These amounts, which are reported in the fund financial statements, were eliminated in the government-wide statements. Transfers out from the General Fund are usually made to subsidize activities in other funds such as Fair and Public Health that are not fully funded by taxes, grants or program and service fees. Transfers in to the General Fund are primarily from sales tax holding funds for public safety purposes. Transfers out of Detention Facilities Sales Tax and Debt Holding Funds are primarily to fund public safety capital projects in capital project funds and public safety operations in the General Fund. Transfers in to Public Health and Social Services comprise subsidies and support service payments from the General and Development Service Funds. Transfers into and out of proprietary and non- major governmental funds are primarily for debt service and associated capital projects. Transfers also include transfers of residual fund balances to active ongoing funds from funds that were closed out and terminated in 2009.

Interfund transfers occurring between major funds, non-major governmental funds, non-major enterprise funds and internal service funds of the County during the year ended December 31, 2009 are summarized below:

Transfers In Transfers Out

General Fund $ 3,336,303 $ 3,501,561 2009 Debt Holding - 29,333,066 Detention Facilities Sales Tax Holding - 4,792,545 Jail Capital Projects 29,333,066 - Real Estate Excise Tax 365,000 4,418,699 Roads 3,858,276 5,519,575 Medic One 12,575 12,575 Public Health & Social Services 1,070,223 2,288,467 Non-Major Governmental Funds 13,277,480 1,691,699 Internal Service Funds 2,549,359 5,043,533 TOTAL GOVERNMENTAL & INTERNAL SERVICE FUNDS 53,802,282 56,601,720

Enterprise Funds Solid Waste 742,666 823,067 Grand Mound 1,350,888 1,374,651 Non-Major Enterprise Funds 4,229,229 1,325,627 TOTAL ENTERPRISE FUNDS 6,322,783 3,523,345

TOTAL COUNTY FUNDS $ 60,125,065 $ 60,125,065

96 Thurston County, Washington 2009

Note IX - Pension Plans

Substantially all county full-time and qualifying part-time employees participate in one of the following statewide retirement systems administered by the Washington State Department of Retirement Systems, under cost-sharing multiple-employer public employee defined benefit and defined contribution retirement plans. The Department of Retirement Systems (DRS), a department within the primary government of the State of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained by writing to: Department of Retirement Systems, Communications Unit, P.O. Box 48380, Olympia, WA 98504-8380. The following disclosures are made pursuant to GASB Statements 27, Accounting for Pensions by State and Local Government Employers and No. 50, Pension Disclosures, an Amendment of GASB Statements No. 25 and No. 27.

A. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) Plans 1, 2, and 3

Plan Description

PERS is a cost-sharing multiple-employer retirement system comprised of three separate plans for membership purposes: Plans 1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a defined contribution component.

Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts (other than judges currently in a judicial retirement system); employees of legislative committees; community and technical colleges, college and university employees not participating in national higher education retirement programs; judges of district and municipal courts; and employees of local governments.

PERS participants who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 and by either, February 28, 2002 for state and higher education employees, or August 31, 2002 for local government employees, are Plan 2 members unless they exercise an option to transfer their membership to Plan 3. PERS participants joining the system on or after March 1, 2002 for state and higher education employees, or September 1, 2002 for local government employees have the irrevocable option of choosing membership in either PERS Plan 2 or PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported in Plan 2 until a choice is made. Employees who fail to choose within 90 days default to PERS Plan 3. Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan membership if terminally ill, with less than five years to live.

PERS Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination of investment earnings and employer and employee contributions. PERS retirement benefit provisions are established in state statute and may be amended only by the State Legislature.

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PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement after 30 years of service, or at the age of 60 with five years of service, or at the age of 55 with 25 years of service. The annual benefit is two percent of the average final compensation (AFC) per year of service, capped at 60 percent. (The AFC is based on the greatest compensation during any 24 eligible consecutive compensation months.) This annual benefit is subject to a minimum for PERS Plan 1 retirees who have 25 years of service and have been retired 20 years, or who have 20 years of service and have been retired 25 years. Plan 1 members who retire from inactive status prior to the age of 65 may receive actuarially reduced benefits. If a survivor option is chosen, the benefit is further reduced. A cost-of living allowance (COLA) is granted at age 66 based upon years of service times the COLA amount, increased by three percent annually. Plan 1 members may also elect to receive an optional COLA amount that provides an automatic annual adjustment based on the Consumer Price Index. The adjustment is capped at three percent annually. To offset the cost of this annual adjustment, the benefit is reduced.

PERS Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members may retire at the age of 65 with five years of service with an allowance of two percent of the AFC per year of service. (The AFC is based on the greatest compensation during any eligible consecutive 60-month period.) Plan 2 members who retire prior to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of service, a three percent per year reduction applies; otherwise an actuarial reduction will apply. The benefit is also actuarially reduced to reflect the choice of a survivor option. There is no cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at three percent annually.

Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component, and member contributions finance a defined contribution component. The defined benefit portion provides a benefit calculated at one percent of the AFC per year of service. (The AFC is based on the greatest compensation during any eligible consecutive 60-month period.) Effective June 7, 2006, Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or after five years of service, if twelve months of that service are earned after age 44; or after five service credit years earned in PERS Plan 2 prior to June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their plan. Vested Plan 3 members are eligible to retire with full benefits at age 65, or they may retire at age 55 with 10 years of service. Plan 3 members who retire prior to the age of 65 receive reduced benefits. If retirement is at age 55 or older with at least 30 years of service, a three percent per year reduction applies; otherwise an actuarial reduction will apply. The benefit is also actuarially reduced to reflect the choice of a survivor option. There is no cap on years of service credit, and Plan 3 provides the same cost-of-living allowance as Plan 2.

The defined contribution portion can be distributed in accordance with an option selected by the member, either as a lump sum or pursuant to other options authorized by the Employee Retirement Benefits Board.

Judicial Benefit Multiplier

Beginning January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to participate in the Judicial Benefit Multiplier Program (JBM) enacted in 2006. Justices and judges in PERS Plan 1 and 2 were able to make a one-time irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5 percent multiplier. The benefit would be capped at 75 percent of AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service benefit, capped at 37.5 percent of average compensation.

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Members who chose to participate in JBM would: accrue service credit at the higher multiplier beginning with the date of their election, be subject to the benefit cap of 75 percent of AFC, pay higher contributions, stop contributing to the Judicial Retirement Account (JRA), and be given the option to increase the multiplier on past judicial service. Members who did not choose to participate would: continue to accrue service credit at the regular multiplier; continue to participate in JRA, if applicable; never be a participant in the JBM Program; and continue to pay contributions at the regular PERS rate.

Newly elected or appointed justices and judges who chose to become PERS members on or after January 1, 2007, or who had not previously opted into PERS membership, were required to participate in the JBM Program. Members required into the JBM program would: return to prior PERS Plan if membership had previously been established; be mandated into Plan 2 and not have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all judicial service; not contribute to JRA; and not have the option to increase the multiplier for past judicial service.

There are 1,192 participating employers in PERS. Membership in PERS consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2008:

Retirees and Beneficiaries Receiving Benefits 73,122 Terminated Plan Members Entitled to but not yet Receiving Benefits 27,267 Active Plan Members Vested 105,212 Active Plan Members Non-vested 56,456 Total 262,057

Funding Policy

Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2 employer and employee contribution rates, and Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are established by statute at six percent for state agencies and local government unit employees, and at 7.5 percent for state government elected officials. The employer and employee contribution rates for Plan 2 and the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. All employers are required to contribute at the level established by the Legislature. Under PERS Plan 3, employer contributions finance the defined benefit portion of the plan, and member contributions finance the defined contribution portion. The Employee Retirement Benefits Board sets Plan 3 employee contribution rates. Six rate options are available ranging from 5 to 15 percent; two of the options are graduated rates dependent on the employee’s age. As a result of the implementation of the Judicial Benefit Multiplier Program in January 2007, a second tier of employer and employee rates was developed to fund, along with investment earnings, the increased retirement benefits of those justices and judges that participate in the program. The methods used to determine the contribution requirements are established under state statute in accordance with chapters 41.40 and 41.45 RCW.

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The required contribution rates expressed as a percentage of current year covered payroll, as of December 31, 2009, were as follows:

Members not participating in JBM:

PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer* 5.31%** 5.31%** 5.31%***

Employee 6.00%**** 3.90%**** *****

* The employer rates include the employer administrative expense fee currently set at 0.16%. ** The employer rate for state elected officials is 7.89% for Plan 1 and 5.31% for Plan 2 and Plan 3. *** Plan 3 defined benefit portion only. **** The employee rate for state elected officials is 7.50% for Plan 1 and 3.90% for Plan 2. ***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member.

Members participating in JBM:

PERS Plan 1 PERS Plan 2 PERS Plan 3 Employer- 7.81% 7.81% 7.81%** State Agency* Employer- 5.31% 5.31% 5.31%** Local Govt.* Employee- 9.76% 7.25% 7.50%*** State Agency Employee- 12.26% 9.75% 7.50%*** Local Govt.

* The employer rates include the employer administrative expense fee currently set at 0.16%. ** Plan 3 defined benefit portion only. *** Minimum rate.

Both county and the employees made the required contributions. The county’s required contributions for the years ended December 31 were as follows:

PERS Plan 1 PERS Plan 2 PERS Plan 3 2009 $ 257,638 $ 2,593,492 $ 281,482 2008 $ 398,108 $ 3,482,899 $ 361,252 2007 $ 337,846 $ 2,681,836 $ 234,290

100 Thurston County, Washington 2009

B. LAW ENFORCEMENT OFFICERS AND FIRE FIGHTERS (LEOFF) Plans 1 and 2

Plan Description

LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined benefit plans. LEOFF participants who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 are Plan 2 members. Membership in the system includes all full-time, fully compensated, local law enforcement officers, firefighters and, as of July 24, 2005, those emergency medical technicians who were given the option and chose LEOFF Plan 2 membership. LEOFF membership is comprised primarily of non-state employees, with Department of Fish and Wildlife enforcement officers, who were first included prospectively effective July 27, 2003, being an exception.

Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide governance of LEOFF Plan 2. The Board’s duties include adopting contribution rates and recommending policy changes to the Legislature for the LEOFF Plan 2 retirement plan.

LEOFF defined benefit retirement benefits are financed from a combination of investment earnings, employer and employee contributions, and a special funding situation in which the state pays through state legislative appropriations. LEOFF retirement benefit provisions are established in state statute and may be amended by the State Legislature.

LEOFF Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for retirement with five years of service at the age of 50. The benefit per year of service calculated as a percent of final average salary (FAS) is as follows:

Term of Service Percent of Final Average Salary 20 or more years 2.0% 10 but less than 20 years 1.5% 5 but less than 10 years 1.0%

The FAS is the basic monthly salary received at the time of retirement, provided a member has held the same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest consecutive 24 months’ salary within the last ten years of service. A cost-of-living allowance is granted (based on the Consumer Price Index).

LEOFF Plan 2 members are vested after the completion of five years of eligible service. Plan 2 members may retire at the age of 50 with 20 years of service, or at the age of 53 with five years of service, with an allowance of two percent of the FAS per year of service. The FAS is based on the highest consecutive 60 months. Plan 2 members who retire prior to the age of 53 receive reduced benefits. Benefits are actuarially reduced for each year that the benefit commences prior to age 53 and to reflect the choice of a survivor option. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior to age 53. There is no cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at three percent annually.

There are 375 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial valuation date for the plans of June 30, 2008:

101 Thurston County, Washington 2009

Retirees and Beneficiaries Receiving Benefits 9,268 Terminated Plan Members Entitled to but not yet Receiving Benefits 650 Active Plan Members Vested 13,120 Active Plan Members Non-vested 3,927 Total 26,965

Funding Policy

Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent as long as the plan remains fully funded. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plan. LEOFF Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. All employers are required to contribute at the level required by state law. The Legislature, by means of a special funding arrangement, appropriated money from the state General Fund to supplement the current service liability and fund the prior service costs of LEOFF Plan 2 in accordance with the requirements of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by the state constitution and this funding requirement could be returned to the employers by a change of statute.

The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2009, were as follows:

LEOFF Plan 1 LEOFF Plan 2 Employer* 0.16% 5.24%**

Employee 0.00% 8.46%

State N/A 3.38%

*The employer rates include the employer administrative expense fee currently set at 0.16%. ** The employer rate for ports and universities is 8.99%.

Both county and the employees made the required contributions. The county’s required contributions for the years ended December 31 were as follows:

LEOFF Plan 1 LEOFF Plan 2 2009 $ 294 $ 332,133 2008 $ 335 $ 399,102 2007 $ 383 $ 342,931

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C. PUBLIC SAFETY EMPLOYEE’S RETIREMEMT SYSTEM (PSERS) Plan 2

Plan Description

PSERS is a cost-sharing multiple-employer retirement system comprised of a single defined benefit plan, PSERS Plan 2. PSERS was created by the 2004 Legislature and became effective July 1, 2006.

PSERS Plan 2 membership includes full-time employees of a covered employer on or before July 1, 2006, who met at least one of the PSERS eligibility criteria, and elected membership during the election period of July 1, 2006 to September 30, 2006; and those full-time employees, hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS eligibility criteria.

A covered employer is one that participates in PSERS. Covered employers include: State of Washington agencies: Department of Corrections, Department of Natural Resources, Parks and Recreation Commission, Gambling Commission, Washington State Patrol, and Liquor Control Board; Washington state counties; and Washington state cities except for Seattle, Tacoma and Spokane.

To be eligible for PSERS, an employee must work on a full-time basis and: • have completed a certified criminal justice training course with authority to arrest, conduct criminal investigations, enforce the criminal laws of Washington, and carry a firearm as part of the job; OR • have primary responsibility to ensure the custody and security of incarcerated or probationary individuals; OR • function as a limited authority Washington peace officer, as defined in RCW 10.93.020; OR • have primary responsibility to supervise eligible members who meet the above criteria.

PSERS defined benefit retirement benefits are financed from a combination of investment earnings and employer and employee contributions. PSERS retirement benefit provisions are established in state statute and may be amended only by the State Legislature.

PSERS Plan 2 members are vested after the completion of five years of eligible service. PSERS Plan 2 members may retire at the age of 65 with five years of service, or at the age of 60 with at least ten years of PSERS service credit, with an allowance of two percent of the average final compensation (AFC) per year of service. The AFC is the monthly average of the member’s 60 consecutive highest-paid service credit months, excluding any severance pay such as lump-sum payments for deferred sick leave, vacation or annual leave. Plan 2 members who retire prior to the age of 60 receive reduced benefits. If retirement is at age 53 or older with at least 20 years of service, a three percent per year reduction for each year between the age at retirement and age 60 applies. There is no cap on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at three percent annually.

There are 73 participating employers in PSERS. Membership in PSERS consisted of the following as of the latest actuarial valuation date for the plan of June 30, 2008:

Retirees and Beneficiaries Receiving Benefits 1 Terminated Plan Members Entitled to but not yet Receiving Benefits 0 Active Plan Members Vested 0 Active Plan Members Non-vested 3,981 Total 3,982

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Funding Policy

Each biennium, the state Pension Funding Council adopts PSERS Plan 2 employer and employee contribution rates. The employer and employee contribution rates for Plan 2 are developed by the Office of the State Actuary to fully fund Plan 2. All employers are required to contribute at the level established by the Legislature. The methods used to determine the contribution requirements are established under state statute in accordance with Chapters 41.37 and 41.45 RCW.

The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2009, were as follows:

PSERS Plan 2 Employer* 7.85% Employee 6.55%

* The employer rate includes an employer administrative expense fee of 0.16%.

Both county and the employees made the required contributions. The county’s required contributions for the years ended December 31 were as follows:

PSERS Plan 2 2009 $ 437,727 2008 $ 529,464 2007 $ 464,949

Note X - Risk Management

Thurston County is exposed to various risks of loss related to torts; thefts, damage, and/or destruction of assets; errors and omissions; and natural disaster for which the County either belongs to a risk pool, carries liability insurance, or is self-insured.

A. RISK POOL AND GENERAL LIABILITY INSURANCE

Thurston County is one of twenty-eight members that participated in the Washington Counties Risk Pool (Pool) during 2009. Chapter 48.62 RCW authorizes the governing body of any one or more governmental entities to form together into or join a pool or organization for the joint purchasing of insurance, and/or joint self-insuring, and/or joint hiring or contracting for risk management services to the extent that they may individually purchase insurance, self insure, or hire or contract for risk management services.

An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW, the Interlocal Cooperation Act. The Pool was formed on August 18, 1988 when several counties in the State of Washington joined together by signing an Interlocal Agreement to pool their self-insured losses and jointly purchase insurance and administrative services. The enabling Interlocal Agreement was amended once in 2000 to add the Membership Compact, a commitment to strengthen the Pool by helping its member counties implement and/or enhance local risk management efforts to reduce losses and support best management practices. The Membership Compact supports these goals through three major elements: membership involvement, risk control practices, and targeted risk management programs.

104 Thurston County, Washington 2009

The Pool allows members to establish a plan of self-insurance, jointly purchase excess or reinsurance and provide related services. All Pool joint self-insurance liability coverage, including public officials’ errors and omissions, and property insurance program are on an “occurrence” basis. The Pool provides the following forms of group purchased insurance coverage for its members: “following form” excess liability, and property that includes vehicles, mobile equipment, and EDP equipment. Special events/concessionaires are another optional group purchase insurance coverage.

Members make an annual contribution to fund the Pool. The Pool acquires liability reinsurance and “following form” excess insurance from unrelated underwriters that is subject to a per-occurrence self- insured retention of $100,000, or the member-selected deductible, whichever is greater. Members are responsible for their elected deductible amounts ranging from $10,000 to $500,000 of each covered claim while the Pool is responsible for the remaining difference up to the pool’s $100,000 to the maximum limits of each policy. The reinsurance and excess insurance carriers cover losses exceeding the greater of the pool’s retention or the member county’s deductible to the maximum limits of each policy.

The pool is governed by a board of directors that is comprised of one designated representative from each participating member. An executive committee is elected at the annual meeting, and is responsible for conducting the business affairs of the pool. Members contract to remain in the pool for a minimum of five years, and must give notice one year before terminating participation. Thurston County rejoined the pool on October 1, 2000, after a one-year absence. The contract with the pool is renewed automatically each year until terminated. Each member is responsible for contributions to the pool for any unresolved, unreported, and in-process claims for the period(s) during which it was a signatory to the interlocal agreement, even after termination of the contractual relationship.

The pool is fully funded by its member participants as a cooperative program with joint liability among the participating members. Claims are filed by members with the pool. Any deficits or program assets which are insufficient to cover program liabilities are financed by proportional reassessments against that year’s membership. The Pool’s reassessment receivable at December 31, 2009 remains at zero.

The County has recorded in its financial statements all material liabilities. This includes estimates for expense, defense and/or payment of pending claims and claims incurred but not reported. Furthermore, the County’s settlements have not exceeded the County’s insurance coverage in each of the past three years. In the opinion of management, the County’s insurance policies, including its participation in the Washington Counties Risk Pool, in conjunction with our funded retention, are adequate to pay all known or pending claims as they come due.

The County paid general claims costs of $292,010 during 2009. The County’s suggested claim reserves, at a 70% confidence level, and therefore the County’s potential liability for claims and costs not covered by the risk pool, were estimated by the pool’s actuary on December 31, 2009 as $4,414,807. The suggested reserve includes reserves for open claims plus an estimate of incurred but not reported (IBNR) claims. It should be recognized that portions of the estimated additional liability incurred are projections. As estimates, these values fluctuate and are subject to inherent variability and may or may not become payable over the course of several years.

105 Thurston County, Washington 2009

Schedule of Claims and Judgments Payable

2009 2008

Beginning Claims Liability $ 3,700,869 $ 3,576,302 Claims Incurred During the Year (including IBNRs)* 1,005,948 748,024 Claims Payments (292,010) (623,457) Ending Claim Liability $ 4,414,807 $ 3,700,869

*Includes total provision for events of the current fiscal year and any changes in the provision for events for prior fiscal years.

B. OTHER

The County is not self insured for other types of risks and losses except as described above under “Risk Pool and General Liability Insurance”. The County reimburses Washington State Employment Security for unemployment compensation claims. These claims are funded through employee related fund transfers into the County’s Unemployment Compensation Fund. The County also pays Washington State Labor and Industries a stipulated amount per employee per payroll period for a state mandated industrial insurance program for worker compensation claims. As discussed in Note VII.F., the County also has a contingent financial liability for the payment of refunded debt.

Note XI – Other Post-Employment Benefits

The County provides other post-employment benefits (OPEB) In addition to the pension benefits described in Note IX.

A. LEOFF

Lifetime full medical coverage is provided to uniformed law enforcement officers as members of the Law Enforcement Officers and Fire Fighters (LEOFF 1) retirement system. A liability for the accumulated unfunded actuarially required contribution is reported in the Statement of Net Assets. The actual medical costs are reported as expenditures in the year they are incurred.

1. Plan Description

The County provides lifetime medical care In accordance with the Washington LEOFF 1 Act (RCW 41.26) for retired full time, fully compensated, law enforcement officers who established membership in the LEOFF 1 retirement system on or before September 30, 1977. All or most of the County’s LEOFF 1 officers are eligible for benefits when they reach normal retirement age through a defined benefit healthcare plan administered by the County.

Thurston County reimburses retired LEOFF 1 officers for reasonable medical charges usually provided by one of the County’s employee medical insurance programs. Under the authorization of the LEOFF Disability Board, direct payment is made for other retiree medical expenses not covered by standard medical plan benefit provisions. Financial reporting for the LEOFF retiree healthcare plan is included in the County’s Comprehensive Annual Financial Report.

106 Thurston County, Washington 2009

In 2009, 18 retirees received benefits under this act. As of December 31, 2009, there were 2 active officers who may become eligible for those benefits when they reach normal retirement age.

2. Funding Policy

Funding for LEOFF retiree healthcare costs is provided entirely by the County as required by RCW. The County’s funding policy is based upon pay-as-you-go financing requirements.

3. Annual OPEB Cost and Net OPEB Obligation

The County’s annual OPEB cost is calculated based upon the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over a period of thirty years as of January 1, 2009. The following table shows the components of the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the County’s net OPEB obligation. The net OPEB obligation of $1,116,733 is reported as a non-current liability on the Statement of Net Assets.

Year Ending 12/31/2009

Determination of Annual Required Contribution: Normal Cost at Year End $ 23,454 Amortization of UAAL* 553,368 Annual Required Contribution $ 576,822

Determination of Net OPEB Obligation: Annual Required Contribution $ 576,822 Interest on Prior Year Net OPEB Obligation 35,058 Adjustment to ARC (72,542) Annual OPEB Cost 539,338 Contributions Made (201,671) Increase in Net OPEB Obligation $ 337,667

Net OPEB Obligation - End Of Year: Net OPEB Obligation - Beginning of Year $ 779,066 Increase in Net OPEB Obligation 337,667 Net OPEB Obligation-end of year (NOO) $ 1,116,733

*Unfunded Actuarial Accrued Liability (UAAL)

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The County’s OPEB cost, the percentage of OPEB cost contributed to the plan, and the net OPEB obligation for 2009 were as follows:

Percentage of Fiscal Year Annual OPEB OPEB Cost Net OPEB Ended Cost Contributed Obligation

12/31/2007 $ 604,740 39.2% $ 367,545 12/31/2008 $ 633,953 35.1% $ 779,066 12/31/2009 $ 539,338 37.4% $ 1,116,733

4. Funded Status and Funding Progress

As of December 31, 2009 the plan was 0% funded. The Actuarial Accrued Liability (AAL) for benefits was $5,942,924 and the actuarial value of the assets was $0 resulting in a UAAL of $5,942,924.

The cost of retiree health care benefits is recognized in the General Fund as claims are paid. For 2009, these costs total $64,135 with a cost per retiree of $3,563. Thurston County uses the Long Term Care Special Revenue Fund to purchase additional long-term care insurance for LEOFF 1 retirees.

Actuarial valuations 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 multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liabilities for benefits.

5. Actuarial Methods and Assumptions

We used the alternative measurement method permitted under GASB Statement No. 45. A single retirement age of 56.24 was assumed for all active members for the purpose of determining the AAL and normal cost. Retirement, disablement, termination, and mortality rates were assumed to follow the LEOFF 1 rates used in the June 30, 2007 actuarial valuation report issued by the Office of the State Actuary (OSA). Healthcare costs and trends were determined by Milliman and used by OSA in the state-wide LEOFF 1 medical study performed in 2007. The results were based on grouped data with 4 active groupings and 4 inactive groupings. The actuarial cost method used to determine the AAL was Projected Unit Credit. The AAL and NOO are amortized on an open basis as a level dollar over 15 years. These assumptions are individually and collectively reasonable for the purposes of this valuation.

The UAAL is being amortized on a closed basis at the assumed discount rate. The remaining amortization period at January 1, 2010 was 28 years.

108 Thurston County, Washington 2009

B. PEBB

Thurston County provides to its retirees employer provided subsidies for post-employment medical and life insurance benefits provided through the Public Employee Benefits Board (PEBB). A liability for the accumulated unfunded actuarially required contribution is reported in the entity-wide and proprietary statements of net assets. The actual medical costs are paid through annual fees and premiums to the PEBB.

1. Plan Description

The PEBB was created within the Washington State Health Care Authority to administer medical, dental, and life insurance plans for public employees and retirees and their dependents. The subsidies provided by PEBB to the County include the following:

• Explicit Medical Subsidy for Post-65 retirees • Explicit Life Insurance Subsidy for all retirees • Implicit Medical Subsidy for Pre-65 retirees

The explicit subsidies are monthly amounts per retiree. The implicit medical subsidy is the difference between the total cost of pre-65 medical benefits and the pre-65 contributions paid by retirees.

2. Eligibility

County members are eligible for retiree medical benefits after becoming eligible for service retirement pension benefits (either reduced or full pension benefits) under Plan 2 of the PERS.

• Age 65 with 5 years of service • Age 55 with 20 years of service

Former members who are entitled to a deferred vested pension benefit are not eligible to receive medical benefits after pension benefit commencement.

3. Medical and Life Benefits

Upon retirement, members are permitted to receive medical benefits. Retirees currently pay the following monthly rates for pre-65 medical coverage:

Type of Coverage - 2009 Employee Employee & Employee & Plan Only Spouse Children Full Family

Aetna Public Employees Plan $ 531.44 $ 1,056.44 $ 925.19 $ 1,450.19 Group Health Classic $ 470.73 $ 935.02 $ 818.95 $ 1,283.24 Group Health Value $ 421.44 $ 836.44 $ 732.69 $ 1,147.69 Kaiser Permanente Classic $ 471.51 $ 936.58 $ 820.31 $ 1,285.38 Kaiser Permanente Value $ 441.08 $ 875.72 $ 767.06 $ 1,201.70 Uniform Medical Plan $ 440.20 $ 873.96 $ 765.52 $ 1,199.28

109 Thurston County, Washington 2009

For 2010, after age 65 retired members and their spouses receive a subsidy of 50% of their monthly medical premiums up to $182.89 per Medicare covered member.

For 2010, retirees also receive an explicit subsidy of $4.77/month toward Life Insurance premiums.

4. Funding Policy

The funding policy is based upon pay-as-you-go financing requirements.

5. Annual OPEB Cost and Net OPEB Obligation

The County’s annual other post employment benefit (OPEB) cost is calculated based upon the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities over a period of 28 years as of December 31, 2009. The following table shows the components of the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the County’s net OPEB.

In 2009, the actuary used by the County made a correction for 2008 that decreased the Net OPEB Obligation-end of year by $143,888. This correction was reported in the table below in the 2009 column as a Prior Period Actuarial Correction to ARC.

Year Ending Year Ending Year Ending 12/31/2007 12/31/2008 12/31/2009

Determination of Annual Required Contribution: Normal Cost at Year End $ 1,541,152 $ 1,541,152 $ 1,833,764 Amortization of UAAL* 780,202 780,202 1,188,521 Annual Required Contribution $ 2,321,354 $ 2,321,354 $ 3,022,285

Determination of Net OPEB Obligation: Annual Required Contribution $ 2,321,354 $ 2,321,354 $ 3,022,285 Interest on Prior Year Net OPEB Obligation - 93,887 188,254 Adjustment to ARC - 71,944 (159,282) Annual OPEB Cost 2,321,354 2,487,185 3,051,257 Contributions Made (234,975) (246,254) (327,205) Increase in Net OPEB Obligation $ 2,086,379 $ 2,240,931 $ 2,724,052

Net OPEB Obligation - End Of Year: Net OPEB Obligation - Beginning of Year $ - $ 2,086,379 $ 4,327,310 Prior Period Actuarial correction to ARC - - (143,888) Adjusted Net OPEB Obligation - Beginning of Year - 2,086,379 4,183,422 Increase in Net OPEB Obligation 2,086,379 2,240,931 2,724,052 Net OPEB Obligation-end of year $ 2,086,379 $ 4,327,310 $ 6,907,474 *Unfunded Actuarial Accrued Liability (UAAL) **Year End 2008 Net OPEB Obligation-end of Year Adjusted by Actuary After Completion of 2008 CAFR

110 Thurston County, Washington 2009

The County’s annual OPEB cost, the percentage of OPEB cost contributed to the plan, and the net OPEB obligation for 2009 were as follows:

Percentage of Fiscal Year Annual OPEB OPEB Cost Net OPEB Ended Cost Contributed Obligation

12/31/2007 $ 2,321,354 10.12% $ 2,086,379 12/31/2008 $ 2,343,297 10.51% $ 4,183,422 12/31/2009 $ 3,051,257 10.72% $ 6,907,474 * Note 12/31/2008 calculations are reported after Actuarial correction. See above table for details.

6. Funded Status and Funding Progress

As of December 31, 2009, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for benefits was $31.2 million, and the actuarial value of assets was $0, resulting in a UAAL of $31.2 million.

Actuarial valuations 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.

7. 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. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities, consistent with the long-term perspective of the calculations.

In the December 31, 2009 actuarial valuation, the Projected Unit Credit actuarial cost method was used. The actuarial assumptions used included a 4.50% discount rate, which is based upon the long-term investment yield on the investments that are expected to be used to finance the payment of benefits.

The UAAL is being amortized on a closed basis at the assumed discount rate. The remaining amortization period at December 31, 2009 was 28 years.

Note XII - Joint Ventures/Jointly Governed Organizations

Thurston County participates in inter-local agreements with five other Thurston County governmental units or agencies. The County participates inter-locally with Animal Control Services, the Inter-local Drug Control Unit, Olympia Region Clean Air Agency (ORCAA), the Thurston Regional Planning Council (TRPC) and the Regional Athletic Complex.

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Animal Control Services is a joint venture governed by a six-member board of which Thurston County is a member. Each member’s contribution is based on a formula factoring population and basic service components. The county contributed $508,434 as its share of operations in 2009. The 2009 contribution was 54.77% of Animal Control Services’ total budget. The financial health of this joint venture remains strong mainly due to a steady stream of revenue received from the Cities of Olympia, Lacey, and Tumwater, and Thurston County. Net Assets for Animal Control at the end of 2009 totaled $3,435,091 million. Complete financial statements for Animal Control can be obtained from its administrative office at the City of Lacey, Post Office Box 3400, Lacey, Washington 98509-3400.

Animal Control

Total Assets $ 3,700,735 Liabilities (265,644) Net Assets $ 3,435,091

Net Assets - 1/1 $ 1,933,376 Revenues 1,515,752 Expenses 417,624 Net Income

Beginning Net Assets, Restated 3,017,467 Ending Net Assets - 12/31 $ 3,435,091

The Inter-local Drug Control Unit is a joint venture governed by a five member executive committee of which Thurston County is a member. Thurston County did not have a computable equity interest in the Inter-local Drug Control Unit in 2009. The Inter-local Drug Control Unit is funded by grants and seizures of drug funds. Financial information on the Inter-local Drug Control Unit can be obtained from its administrative office at the City of Lacey, Post Office Box 3400, Lacey, Washington 98509-3400.

Olympic Region Clean Air Agency is a jointly governed organization governed by a nine-member board of which Thurston County is a member. Thurston County contributed $61,022 as its share of operations in 2009. The assessment was based on population and violation fees collected. Thurston County did not have an equity interest in ORCAA in 2009. Complete financial statements for ORCAA can be obtained from its administrative office at 2940 B Limited Lane NW, Olympia, Washington 98502.

Thurston Regional Planning Council is a jointly governed organization governed by a fifteen-member council of which Thurston County is a member. Thurston County contributed $205,014 as its share of operations in 2009. Of that $0 went to the Historic Commission and $199,740 went to intergovernmental professional services. The assessment was based on population and contractual commitments. Thurston County did not have an equity interest in TRPC in 2009. Complete financial statements for TRPC can be obtained from its administrative office at 2424 Heritage Court SE Suite A, Olympia, Washington 98502.

112 Thurston County, Washington 2009

Thurston County and the City of Lacey agreed to purchase, develop and jointly share a portion of the costs of the Regional Athletic Complex (RAC) in 1998. Phase I was completed in 2005 and Phase II was dedicated and opened in September 2009 for the benefit of the citizens of Thurston County. Thurston County’s equity contribution for the shared cost was 42.54% with the remaining 57.46% contributed by the City of Lacey. The RAC also received additional funding from sources such as grants, bonds and Public Facilities District monies.

Any excess costs for operating and maintaining the Regional Athletic Complex are jointly shared by Thurston County and the City of Lacey. The County may, in its sole discretion, transfer its share of ownership to the City of Lacey after 2014 or by mutual agreement prior to that time. Additional financial information may be obtained from Thurston County Financial Services, 2000 Lakeridge Drive SW, Olympia, Washington 98502.

The following is condensed financial information for the Regional Athletic Complex as of December 31, 2009:

Regional Athletic Complex

Total Assets $ 18,546,247 Liabilities - Net Assets - 12/31 $ 18,546,247

Capital Assets, Net of Accumulated Depreciation $ 18,546,247 Revenues 1,346,760 Expenses (1,337,757) Net Increase (decrease) in Net Assets 9,003 Beginning Net Assets, 1/1 18,537,244 Net Assets - 12/31 $ 18,546,247

The County’s residual equity interests in investments in joint ventures for Animal Control Services and the Regional Athletic Complex for the year ended December 31, 2009 were as follows:

Beginning Ending GOVERNMENTAL TYPE ACTIVITIES Balance Balance 01/01/09 Increases Decreases 12/31/09

Regional Athletic Complex $ 3,233,926 $ - $ - $ 3,233,926 Animal Shelter 959,298 - 959,298 Less Accumulated Depreciation (646,847) (208,321) - (855,168) Investment in Joint Ventures, Net $ 3,546,377 $ (208,321) $ - $ 3,338,056

113 Thurston County, Washington 2009

Note XIII - Closure And Post Closure Care Costs

State and federal laws and regulations require Thurston County to perform landfill maintenance and monitoring activities for thirty years after closure. An expense provision and related liability for these activities was recognized in the Solid Waste Enterprise Fund before the landfill was closed. This expense provision was based on estimated future post closure care costs after closure.

Cell No. 1, the last landfill cell used for waste disposal at the Hawke’s Prairie landfill site, was closed on April 30, 2000. The County’s long haul of waste to a regional landfill in Klickitat County was initiated on May 1, 2000. Post closure costs were funded with operating fees through December 31, 2002. The post closure care period was subsequently initiated on January 1, 2003. The estimated remaining liability for post closure care costs is $19,219,878 on December 31, 2009.

Thurston County, as required by state and federal laws and regulations, made annual contributions to finance post closure care. The County is in compliance with these requirements, and at December 31, 2009, cash and pooled investments of $21,397,275 are held for these purposes and reported as restricted cash and pooled investments on the balance sheet.

The post closure care cost was based on the amount that would have been paid if all equipment, facilities and services required to monitor and maintain the landfill site were acquired as of December 31, 2000. However, the actual cost of post closure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. It is anticipated that future inflation costs will be financed in part from earnings on the cash and investments. The remaining portion of anticipated future inflation costs (including inadequate earnings on investments, if any) and additional costs that may arise from changes in post closure requirements (due to changes in technology or more rigorous environmental regulations, for example) may need to be covered by charges to future landfill users, taxpayers, or both.

Note XIV - Other Disclosures

A. FUND CHANGES

During 2009, the following funds were established:

• Treatment Sales Tax Special Revenue Fund • 2009 Debt Holding Special Revenue Fund • GO Bonds 2009 Debt Service Fund • Tilley Master Plan Capital Projects Fund

During 2009, the following funds were abolished:

• Debt Holding 2007 Special Revenue Fund • Lakes Management Administration Special Revenue Fund • RSN-IRMA-Cowlitz Special Revenue Fund • RSN-IRMA-Grays Harbor Special Revenue Fund • South Pattison Lake - LMD Special Revenue Fund • Evaluation & Treatment Triage Facility Capital Projects Fund

B. CONTINGENCIES

Thurston County has other claims and lawsuits pending at this time that could be a liability to the County over the next few years. The amount of these other claims cannot be reasonably estimated.

114 Thurston County, Washington 2009

C. SUBSEQUENT EVENTS

In June 2010 the County has reached a preliminary agreement with the City of Lacey to transfer its property interest in the Regional Athletic Complex to the City of Lacey. Upon transfer, the County will cease to have any financial obligation to operate or maintain the Regional Athletic Complex.

Based on the agreement, the County will pay the City of Lacey $1,625,000 of Real Estate Excise Tax funds as settlement of the County’s share of all costs associated with the purchase, planning, development, maintenance, operation and capital costs of the Complex. Additionally, the County will make available $200,000 in Conservation Futures funds to be used to contribute to the Woodland Creek Corridor acquisition.

REQUIRED SUPPLEMENTARY INFORMATION RETIREE MEDICAL BENEFITS SCHEDULE OF FUNDING PROGRESS

LEOFF 1 Retiree Medical Benefits

Unfunded UAAL as a Actuarial Actuarial Actuarial Actuarial Percentage Valuation Value of Accrued Accrued Funded Covered of Covered Date Assets Liability Liabilities Ratio Payroll Payroll

12/31/2007 $ - $ 6,128,459 $ 6,128,459 0% $ 266,054 2303.46% 12/31/2008 $ - $ 6,128,459 $ 6,128,459 0% $ 226,117 2710.30% 12/31/2009 $ - $ 5,942,924 $ 5,942,924 0% $ 233,651 2543.50% Actuary valuation conducted every two years.

PEBB Retiree Medical Benefits

Unfunded UAAL as a Actuarial Actuarial Actuarial Actuarial Percentage Valuation Value of Accrued Accrued Funded Covered of Covered Date Assets Liability Liabilities Ratio Payroll Payroll

12/31/2007 $ - $ 23,406,060 $ 23,406,060 0% $ 75,802,799 30.88% 12/31/2008 $ - $ 23,406,060 $ 23,406,060 0% $ 76,013,118 30.79% 12/31/2009 $ - $ 31,215,533 $ 31,215,533 0% $ 78,114,300 39.96% Actuary valuation conducted every two years.

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Combining Balance Sheet Nonmajor Governmental Funds December 31, 2009

Nonmajor Nonmajor Nonmajor Special Debt Capital Revenue Service Projects ASSETS Funds Funds Funds Total

Curre nt Asse ts: Cash & Pooled Investments $ 15,666,347 $ 4,024 $ 4,026,096 $ 19,696,467 Receivables: Taxes Receivable 70,671 - - 70,671 Special Assessment Receivables 59,766 - - 59,766 Accrued Interest & Penalties 147,274 373 23,703 171,350 Customer Account Receivables 470,791 - - 470,791 Due from Other Funds 12,069 - 12,175 24,244 Due from Other Government Units 3,229,528 - - 3,229,528 Prepayments 222,700 - - 222,700

Tota l Asse ts $ 19,879,146 $ 4,397 $ 4,061,974 $ 23,945,517

LIABILITIES Current Liabilities: Accounts Payable $ 1,507,941 $ - $ 70,629 $ 1,578,570 Notes Payable - - - - Due to Other Funds 538,284 - 19,042 557,326 Due to Other Government Units 430,527 - - 430,527 Deferred Revenues 250,079 - - 250,079

Total Liabilities 2,726,831 - 89,671 2,816,502

FUND BALANCES Reserved For: Debt Service - 4,397 - 4,397 Unreserved - Designated, Reported In: Petty Cash 19,975 - - 19,975 Unreserved Undesignated 17,132,340 - 3,972,303 21,104,643

Total Fund Balance 17,152,315 4,397 3,972,303 21,129,015

Total Liabilities & Fund Balances $ 19,879,146 $ 4,397 $ 4,061,974 $ 23,945,517

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Combining Statement Of Revenues, Expenditures And Changes In Fund Balances Nonmajor Governmental Funds For The Year Ended December 31, 2009

Nonmajor Nonmajor Nonmajor Special Debt Capital Revenue Service Projects Funds Funds Funds Total

Revenues: Taxes $ 9,778,043 $ - $ - $ 9,778,043 Licenses & Permits 81,591 - - 81,591 Intergovernmental 19,350,504 - - 19,350,504 Charges for Services 3,602,869 - - 3,602,869 Fines & Forfeits 52,374 - - 52,374 Miscellaneous Revenue 1,781,517 474 39,836 1,821,827

Total Revenues 34,646,898 474 39,836 34,687,208

Expenditures: Current: General Government 1,220,723 - 106,191 1,326,914 Culture & Recreation 2,233,950 - - 2,233,950 Economic Environment 15,420,163 - - 15,420,163 Health & Human Services 3,644,477 - - 3,644,477 Public Safety 7,979,695 - - 7,979,695 Transportation 1,006,924 - - 1,006,924 Utilities & Environment 716,332 - - 716,332 Capital Outlay 1,758,673 - 1,333,880 3,092,553 Debt Service: Principal 328,076 2,275,588 - 2,603,664 Interest & Fiscal Charges 16,943 2,701,989 - 2,718,932

Total Expenditures 34,325,956 4,977,577 1,440,071 40,743,604

Excess (Deficiency) of Revenues Over Expenditures 320,942 (4,977,103) (1,400,235) (6,056,396)

Other Financing Sources (Uses) Sale of Capital Assets 66,853 - - 66,853 Transfers In 3,994,757 4,953,367 4,329,356 13,277,480 Transfers Out (1,671,854) - (19,845) (1,691,699)

Total Other Financing Sources (Uses) 2,389,756 4,953,367 4,309,511 11,652,634

Net Changes In Fund Balances 2,710,698 (23,736) 2,909,276 5,596,238

Fund Balances as of January 1 14,441,617 28,133 1,063,027 15,532,777

Fund Balances as of December 31 $ 17,152,315 $ 4,397 $ 3,972,303 $ 21,129,015

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NONMAJOR SPECIAL REVENUE FUNDS

Special revenue funds are established pursuant to state statutes or local ordinances to segregate resources designated for specific purposes.

Anti-Profiteering – A fund that uses proceeds from anti-profiteering cases to investigate and prosecute similar cases.

Auditor - Election Reserve – A fund that uses election service surcharges to acquire and replace election equipment.

Auditor - Maintenance and Operations – A fund that uses service charges (including election service surcharges, duplicating fees and document preservation fees) and grants for the replacement of recording equipment and for historic document preservation.

Clerk’s Collection – A fund that uses intergovernmental service revenues to collect past due court ordered financial obligations.

Communications – A fund that uses primarily sales and excise taxes to finance an intergovernmental agency that provides countywide emergency communication services within Thurston County.

Community Renewal & Housing – A fund that uses business, occupation and excise taxes, grants, recording surcharges and interfund payments to provide the following services: administrative and budget support to the BOCC, preparation of the County's capital facilities plan, managing debt and tax holding funds, administering grant funded environmental and community services, administering Cable TV franchise agreements and providing information services to other departments.

Conservation Futures – A fund that uses property taxes to acquire, maintain and preserve park lands and open spaces.

Emergency Management – A fund established to use intergovernmental service and miscellaneous revenues from local jurisdictions to fund joint emergency management activities.

Fair – A fund that uses event service charges, general fund subsidies and grants to fund the annual fair and other activities at the County’s fairgrounds.

Family Court Services – A fund that uses grants (federal and state), service charges (family court, civil filing and transcription) and general fund transfers to provide court ordered services to indigent parties for medication counseling, psychological evaluation, guardians ad litem and custody investigations.

Geodata Center – A fund established to use roads property tax assessments to administer and operate a spatial data support service facility for roads, other County departments and other agencies and businesses.

Investment Administration – A fund that uses Treasurer’s investment service fees on outside agencies to administer Thurston County’s Investment Pool.

Lake Lawrence L. M. D. – A fund established to levy assessments to manage water quality and for aquatic weed removal at Lake Lawrence.

119 Thurston County, Washington 2009

Law Library – A fund that uses filing fees to fund a legal law library for Thurston County’s Superior Courts.

LEOFF 1 Long Term Care – A fund that uses proceeds from the General Fund to fund a reserve to pay unfunded premiums for law enforcement long-term care insurance.

Long Lake L. M. D. – A fund established to levy assessments to manage water quality and for aquatic weed removal at Long Lake.

Noxious Weed Control – A fund established to levy and use tax assessments and inter-governmental revenues to control noxious weeds.

Prisoner Concession – A fund established to use prisoner concession and booking fees to fund prisoner commissary sales and inmate rehabilitative activities.

Recreation Services– A fund that uses primarily transfers from the General Fund and secondarily park usage fees to acquire, develop and maintain County parks, preserves, open spaces, historic sites, and trails.

REET Technology – A fund established to use real estate excise taxes and treasurer collection fees to develop and implement technology to process real estate excise tax affidavits.

Regional Athletic Complex – A fund that uses property and sales taxes, grants and donations and funds from the City of Lacey to develop maintain and operate a jointly owned athletic complex facility in northeast Thurston County.

Road Improvement District No. 2 – A fund that uses special assessments for principal and interest payments that were used to finance a landslide stabilization project on Sunrise Beach Road.

Roads Development Review – A fund established to use transfers from Roads and Development Services to review and inspect road and road frontage for privately funded land development projects constructed in unincorporated Thurston County.

RSN - IRMA - Thurston – A reserve fund funded by Cowlitz, Grays Harbor and Thurston Counties that will fund inpatient and outpatient care if there is a cash shortage to fund these services in the future.

Sheriff’s Special Programs – A fund that uses vessel registration fees to fund boating enforcement and other programs.

Stadium Convention and Arts Center – A fund that uses hotel/motel tax proceeds to promote tourism and economic development.

Tax Refunds – An abolished fund established to return taxes improperly collected as mandated by court order.

Treasurer’s Maintenance and Operations – A revolving fund that uses Treasurer’s assessment collection fees to defray costs of foreclosing and selling property due to delinquent property taxes.

Treatment Sales Tax – A fund that uses sales tax (1/10 of 1%) proceeds to fund mental health treatment.

Trial Court Improvement – A fund established to use judicial salary contributions from the state to fund improvements to superior and district courts.

120 Thurston County, Washington 2009

Veterans – A fund that uses property taxes to fund emergency assistance to eligible veterans in Thurston County.

Victim Advocate Program – A fund that uses court penalties and assessments from the County’s crime victim/witness program and grant proceeds to fund services to victims of crimes.

Workforce Development – A fund that administers federal workforce investment act grants to provide employment training, placement and development services for Thurston County and four other adjacent counties.

WRIA Water and Waste – A fund that uses grant proceeds to identify comprehensive water resource management strategies for the Deschutes River Watershed.

121 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2009 Page 1 of 7

Auditor - Anti- Election Auditor - Clerk's ASSETS Profiteering Reserve M & O Collection Communications

Curre nt Asse ts: Cash & Pooled Investments $ 21,245 $ 394,416 $ 453,775 $ 511,042 $ 2,790,405 Receivables: Taxes Receivable - - - - - Special Assessment Receivables - - - - - Accrued Interest & Penalties 65 1,863 - 1,962 11,636 Customer Account Receivables - - - 172,882 - Due from Other Funds - - - - 2,170 Due from Other Government Units - 8,002 - - 126,088 Prepayments - - - - 222,700

Tota l Asse ts $ 21,310 $ 404,281 $ 453,775 $ 685,886 $ 3,152,999

LIABILITIES

Current Liabilities: Accounts Payable $ - $ - $ 28,387 $ - $ 198,678 Due to Other Funds - - - - 173 Due to Other Government Units - - - - - Deferred Revenues - - - - 20,325

Total Liabilities - - 28,387 - 219,176

FUND BALANCES

Unreserved - Designated, Reported In: Fines & Forfeitures Petty Cash - - - - - Unreserved Undesignated 21,310 404,281 425,388 685,886 2,933,823

Total Fund Balance 21,310 404,281 425,388 685,886 2,933,823

Total Liabilities & Fund Balances $ 21,310 $ 404,281 $ 453,775 $ 685,886 $ 3,152,999

122 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2009 Page 2 of 7

Community Family Renewal & Conservation Emergency Court ASSETS Housing Futures Management Fair Services

Curre nt Asse ts: Cash & Pooled Investments $ 1,300,127 $ 3,166,364 $ 7,551 $ 85,090 $ 379,100 Receivables: Taxes Receivable - 55,561 - - - Special Assessment Receivables 26 - - - - Accrued Interest & Penalties 15,018 14,240 54 641 1,103 Customer Account Receivables - - - - 8,375 Due from Other Funds - - - - - Due from Other Government Units 1,074,897 38,797 - - - Prepayments - - - - -

Tota l Asse ts $ 2,390,068 $ 3,274,962 $ 7,605 $ 85,731 $ 388,578

LIABILITIES

Current Liabilities: Accounts Payable $ 154,879 $ 110 $ - $ 4,624 $ 202 Due to Other Funds 605 - - 44 - Due to Other Government Units 144,500 - - - - Deferred Revenues 11,216 55,561 - 6,055 1,220

Total Liabilities 311,200 55,671 - 10,723 1,422

FUND BALANCES

Unreserved - Designated, Reported In: Fines & Forfeitures Petty Cash - - - 150 - Unreserved Undesignated 2,078,868 3,219,291 7,605 74,858 387,156

Total Fund Balance 2,078,868 3,219,291 7,605 75,008 387,156

Total Liabilities & Fund Balances $ 2,390,068 $ 3,274,962 $ 7,605 $ 85,731 $ 388,578

123 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2009 Page 3 of 7

LEOFF 1 Lake Long GeoData Investment Lawrence - Law Term ASSETS Center Admin. L. M. D. Library Care

Curre nt Asse ts: Cash & Pooled Investments $ 103,770 $ 238,296 $ 42,866 $ 9,063 $ 29,086 Receivables: Taxes Receivable - - - - - Special Assessment Receivables - - 4,937 - - Accrued Interest & Penalties 756 78,288 108 - 196 Customer Account Receivables - - - - - Due from Other Funds 1,050 - - - - Due from Other Government Units - - - - - Prepayments - - - - -

Tota l Asse ts $ 105,576 $ 316,584 $ 47,911 $ 9,063 $ 29,282

LIABILITIES

Current Liabilities: Accounts Payable $ 11,080 $ 3,187 $ 1,823 $ 7,797 $ 9,538 Due to Other Funds 242 - 1,301 - - Due to Other Government Units - - - - - Deferred Revenues - - 4,937 - -

Total Liabilities 11,322 3,187 8,061 7,797 9,538

FUND BALANCES

Unreserved - Designated, Reported In: Fines & Forfeitures Petty Cash 100 - - - - Unreserved Undesignated 94,154 313,397 39,850 1,266 19,744

Total Fund Balance 94,254 313,397 39,850 1,266 19,744

Total Liabilities & Fund Balances $ 105,576 $ 316,584 $ 47,911 $ 9,063 $ 29,282

124 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2009 Page 4 of 7

Long Lake - Noxious Prisoner Recreation REET ASSETS L. M. D. Weed Concession Services Technology

Curre nt Asse ts: Cash & Pooled Investments $ 114,241 $ 121,561 $ 122,076 $ 28,533 $ 191,973 Receivables: Taxes Receivable - - - - - Special Assessment Receivables 2,679 32,477 - - - Accrued Interest & Penalties 431 462 - 1,684 433 Customer Account Receivables - - 25,950 - - Due from Other Funds - - - 7,527 - Due from Other Government Units - - - - - Prepayments - - - - -

Tota l Asse ts $ 117,351 $ 154,500 $ 148,026 $ 37,744 $ 192,406

LIABILITIES

Current Liabilities: Accounts Payable $ 3,558 $ 5,088 $ 7,130 $ 3,121 $ - Due to Other Funds 3,958 - - - - Due to Other Government Units - - - - - Deferred Revenues 2,679 32,477 - 3,269 -

Total Liabilities 10,195 37,565 7,130 6,390 -

FUND BALANCES

Unreserved - Designated, Reported In: Fines & Forfeitures Petty Cash - - - 225 - Unreserved Undesignated 107,156 116,935 140,896 31,129 192,406

Total Fund Balance 107,156 116,935 140,896 31,354 192,406

Total Liabilities & Fund Balances $ 117,351 $ 154,500 $ 148,026 $ 37,744 $ 192,406

125 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2009 Page 5 of 7

Road Roads Regional Improvement Develop- RSN - Sheriff's Athletic District ment IRMA - Special ASSETS Complex No. 2 Review Thurston Programs

Curre nt Asse ts: Cash & Pooled Investments $ - $ 17,094 $ - $ 1,468,018 $ 84,577 Receivables: Taxes Receivable - - - - - Special Assessment Receivables - 19,647 - - - Accrued Interest & Penalties - 9,331 - 4,488 667 Customer Account Receivables - - - - - Due from Other Funds - - - - - Due from Other Government Units - - - - - Prepayments - - - - -

Tota l Asse ts $ - $ 46,072 $ - $ 1,472,506 $ 85,244

LIABILITIES

Current Liabilities: Accounts Payable $ - $ - $ - $ - $ - Due to Other Funds - - - - - Due to Other Government Units - - - - - Deferred Revenues - 28,258 - - -

Total Liabilities - 28,258 - - -

FUND BALANCES

Unreserved - Designated, Reported In: Fines & Forfeitures Petty Cash - - - - - Unreserved Undesignated - 17,814 - 1,472,506 85,244

Total Fund Balance - 17,814 - 1,472,506 85,244

Total Liabilities & Fund Balances $ - $ 46,072 $ - $ 1,472,506 $ 85,244

126 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2009 Page 6 of 7

Stadium Convention Trial & Arts Tax Treasurer's Treatment Court ASSETS Center Refunds M & O Sales Tax Improvement

Curre nt Asse ts: Cash & Pooled Investments $ 67,869 $ 9,288 $ 84,042 $ 1,402,528 $ 166,898 Receivables: Taxes Receivable - 688 - - - Special Assessment Receivables - - - - - Accrued Interest & Penalties 286 - 274 276 331 Customer Account Receivables - - 68,972 - - Due from Other Funds - - - - - Due from Other Government Units - - - - - Prepayments - - - - -

Tota l Asse ts $ 68,155 $ 9,976 $ 153,288 $ 1,402,804 $ 167,229

LIABILITIES

Current Liabilities: Accounts Payable $ - $ - $ 223 $ - $ - Due to Other Funds - - 3,695 489,675 22,433 Due to Other Government Units - - - - - Deferred Revenues - 688 68,972 - -

Total Liabilities - 688 72,890 489,675 22,433

FUND BALANCES

Unreserved - Designated, Reported In: Fines & Forfeitures Petty Cash - - - - - Unreserved Undesignated 68,155 9,288 80,398 913,129 144,796

Total Fund Balance 68,155 9,288 80,398 913,129 144,796

Total Liabilities & Fund Balances $ 68,155 $ 9,976 $ 153,288 $ 1,402,804 $ 167,229

127 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Special Revenue Funds December 31, 2009 Page 7 of 7

Victim WRIA Advocate Workforce Water & ASSETS Veterans Program Development W a ste Total

Curre nt Asse ts: Cash & Pooled Investments $ 507,979 $ 97,493 $ 1,625,810 $ 24,171 $ 15,666,347 Receivables: Taxes Receivable 14,422 - - - 70,671 Special Assessment Receivables - - - - 59,766 Accrued Interest & Penalties 1,233 343 716 389 147,274 Customer Account Receivables - 181,903 12,709 - 470,791 Due from Other Funds - - 1,322 - 12,069 Due from Other Government Units - 29,145 1,952,599 - 3,229,528 Prepayments - - - - 222,700

Tota l Asse ts $ 523,634 $ 308,884 $ 3,593,156 $ 24,560 $ 19,879,146

LIABILITIES

Current Liabilities: Accounts Payable $ 22,022 $ - $ 1,046,494 $ - $ 1,507,941 Due to Other Funds 103 - 16,055 - 538,284 Due to Other Government Units - - 286,027 - 430,527 Deferred Revenues 14,422 - - - 250,079

Total Liabilities 36,547 - 1,348,576 - 2,726,831

FUND BALANCES

Unreserved - Designated, Reported In: Fines & Forfeitures Petty Cash 7,500 - 12,000 - 19,975 Unreserved Undesignated 479,587 308,884 2,232,580 24,560 17,132,340

Total Fund Balance 487,087 308,884 2,244,580 24,560 17,152,315

Total Liabilities & Fund Balances $ 523,634 $ 308,884 $ 3,593,156 $ 24,560 $ 19,879,146

128 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds For The Year Ended December 31, 2009 Page 1 of 7

Auditor - Anti- Election Auditor - Clerk's Profiteering Reserve M & O Collection Communications Revenues: Taxes $ - $ - $ - $ - $ 5,711,494 Licenses & Permits - - - - - Intergovernmental - - 142,159 312,949 1,639,166 Charges for Services - 92,327 169,548 - 284,712 Fines & Forfeits - - - 19,879 - Miscellaneous Revenue 614 10,865 3,048 12,249 155,662

Total Revenues 614 103,192 314,755 345,077 7,791,034 Expenditures: Current: General Government - 149,721 695,411 - - Culture & Recreation - - - - - Economic Environment - - - - - Health & Human Services - - - - - Public Safety - - - 251,151 6,225,339 Transportation - - - - - Utilities & Environment - - - - - Capital Outlay - - 26,220 - 1,657,532 Debt Service: Principal - - - - 264,019 Interest & Fiscal Charges - - - - 13,990

Total Expenditures - 149,721 721,631 251,151 8,160,880 Excess (Deficiency) of Revenues Over Expenditures 614 (46,529) (406,876) 93,926 (369,846) Other Financing Sources (Uses) Sale of Capital Assets - - - - 50,000 Transfers In - - - - - Transfers Out - - (3,275) - (23,600)

Total Other Financing Sources (Uses) - - (3,275) - 26,400 Net Changes In Fund Balances 614 (46,529) (410,151) 93,926 (343,446) Fund Balances as of January 1 20,696 450,810 835,539 591,960 3,277,269

Fund Balances as of December 31 $ 21,310 $ 404,281 $ 425,388 $ 685,886 $ 2,933,823

129 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds For The Year Ended December 31, 2009 Page 2 of 7

Community Family Renewal & Conservation Emergency Court Housing Futures Management Fair Services Revenues: Taxes $ 101 $ 1,090,829 $ - $ - $ - Licenses & Permits - - - - - Intergovernmental 2,126,055 4,347 2,000 41,785 11,775 Charges for Services 1,325,721 - - 122,116 251,640 Fines & Forfeits - - - - - Miscellaneous Revenue 67,679 90,905 329 264,748 21,211

Total Revenues 3,519,556 1,186,081 2,329 428,649 284,626 Expenditures: Current: General Government 21,140 - - - - Culture & Recreation - 697,516 - 526,415 - Economic Environment 3,629,324 - - - - Health & Human Services - - - - - Public Safety - - 6,000 - 230,337 Transportation - - - - - Utilities & Environment - - - - - Capital Outlay - - - - - Debt Service: Principal 341 - - - - Interest & Fiscal Charges 75 - - - -

Total Expenditures 3,650,880 697,516 6,000 526,415 230,337 Excess (Deficiency) of Revenues Over Expenditures (131,324) 488,565 (3,671) (97,766) 54,289 Other Financing Sources (Uses) Sale of Capital Assets - 10,827 - - - Transfers In - - - 35,298 - Transfers Out (2,060) (183,172) - - -

Total Other Financing Sources (Uses) (2,060) (172,345) - 35,298 - Net Changes In Fund Balances (133,384) 316,220 (3,671) (62,468) 54,289 Fund Balances as of January 1 2,212,252 2,903,071 11,276 137,476 332,867

Fund Balances as of December 31 $ 2,078,868 $ 3,219,291 $ 7,605 $ 75,008 $ 387,156

130 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds For The Year Ended December 31, 2009 Page 3 of 7

LEOFF 1 Lake Long GeoData Investment Lawrence - Law Term Center Admin. L. M. D. Library Care Revenues: Taxes $ - $ - $ - $ - $ - Licenses & Permits - - - - - Intergovernmental 25,208 - - - - Charges for Services 94,116 - - 111,424 - Fines & Forfeits - - - - - Miscellaneous Revenue 6,134 103,552 98,660 7 1,006

Total Revenues 125,458 103,552 98,660 111,431 1,006 Expenditures: Current: General Government - 211,645 - - - Culture & Recreation - - - - - Economic Environment - - - - - Health & Human Services - - - - - Public Safety - - - 136,344 232,000 Transportation 811,944 - - - - Utilities & Environment - - 69,951 - - Capital Outlay - - - - - Debt Service: Principal - - - - - Interest & Fiscal Charges - - - - -

Total Expenditures 811,944 211,645 69,951 136,344 232,000 Excess (Deficiency) of Revenues Over Expenditures (686,486) (108,093) 28,709 (24,913) (230,994) Other Financing Sources (Uses) Sale of Capital Assets - - - - - Transfers In 665,000 - - - 353,028 Transfers Out - - - - -

Total Other Financing Sources (Uses) 665,000 - - - 353,028 Net Changes In Fund Balances (21,486) (108,093) 28,709 (24,913) 122,034 Fund Balances as of January 1 115,740 421,490 11,141 26,179 (102,290)

Fund Balances as of December 31 $ 94,254 $ 313,397 $ 39,850 $ 1,266 $ 19,744

131 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds For The Year Ended December 31, 2009 Page 4 of 7

Long Lake - Noxious Prisoner Recreation REET L. M. D. Weed Concession Services Technology Revenues: Taxes $ - $ - $ - $ - $ - Licenses & Permits - - - 5,410 - Intergovernmental - 51,155 - 49,743 28,502 Charges for Services - 88,072 187,784 370,608 - Fines & Forfeits - - - - - Miscellaneous Revenue 186,389 297,551 167,383 44,757 5,055

Total Revenues 186,389 436,778 355,167 470,518 33,557 Expenditures: Current: General Government - - - - - Culture & Recreation - - - 1,008,396 - Economic Environment - - - 102,175 - Health & Human Services - - - - - Public Safety - - 353,421 - - Transportation - - - - - Utilities & Environment 214,392 419,837 - - - Capital Outlay - 5,410 - 51,210 - Debt Service: Principal - - - 1,452 - Interest & Fiscal Charges - - - 331 -

Total Expenditures 214,392 425,247 353,421 1,163,564 - Excess (Deficiency) of Revenues Over Expenditures (28,003) 11,531 1,746 (693,046) 33,557 Other Financing Sources (Uses) Sale of Capital Assets - - - - - Transfers In - - - 472,156 - Transfers Out - - - - -

Total Other Financing Sources (Uses) - - - 472,156 - Net Changes In Fund Balances (28,003) 11,531 1,746 (220,890) 33,557 Fund Balances as of January 1 135,159 105,404 139,150 252,244 158,849

Fund Balances as of December 31 $ 107,156 $ 116,935 $ 140,896 $ 31,354 $ 192,406

132 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds For The Year Ended December 31, 2009 Page 5 of 7

Road Regional Improvement Roads RSN - Sheriff's Athletic District Development IRMA - Special Complex No. 2 Review Thurston Programs Revenues: Taxes $ - $ 19,711 $ - $ - $ - Licenses & Permits - - 76,181 - - Intergovernmental - - - - 84,127 Charges for Services - - 106,810 - 700 Fines & Forfeits - - - - - Miscellaneous Revenue - 11,106 3,150 37,840 3,390

Total Revenues - 30,817 186,141 37,840 88,217 Expenditures: Current: General Government - - - - - Culture & Recreation 1,623 - - - - Economic Environment - - - - - Health & Human Services - - - - - Public Safety - - - - 110,946 Transportation - - 194,980 - - Utilities & Environment - - - - - Capital Outlay - - - - - Debt Service: Principal - 61,943 - - - Interest & Fiscal Charges - 2,478 - - -

Total Expenditures 1,623 64,421 194,980 - 110,946 Excess (Deficiency) of Revenues Over Expenditures (1,623) (33,604) (8,839) 37,840 (22,729) Other Financing Sources (Uses) Sale of Capital Assets - - - - - Transfers In - - 228,322 345,802 - Transfers Out (6,478) (26,785) - - -

Total Other Financing Sources (Uses) (6,478) (26,785) 228,322 345,802 - Net Changes In Fund Balances (8,101) (60,389) 219,483 383,642 (22,729) Fund Balances as of January 1 8,101 78,203 (219,483) 1,088,864 107,973

Fund Balances as of December 31 $ - $ 17,814 $ - $ 1,472,506 $ 85,244

133 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds For The Year Ended December 31, 2009 Page 6 of 7

Stadium Convention Trial & Arts Tax Treasurer's Treatment Court Center Refunds M & O Sales Tax Improvement Revenues: Taxes $ 22,209 $ 451 $ - $ 2,243,305 $ - Licenses & Permits - - - - - Intergovernmental - - - - 55,793 Charges for Services - - 144,327 - - Fines & Forfeits - - - - - Miscellaneous Revenue 1,752 257 2,165 11,697 5,092

Total Revenues 23,961 708 146,492 2,255,002 60,885 Expenditures: Current: General Government - - 142,806 - - Culture & Recreation - - - - - Economic Environment - - - - - Health & Human Services - - - - - Public Safety - - - - 27,195 Transportation - - - - - Utilities & Environment - - - - - Capital Outlay - - - - - Debt Service: Principal - - - - - Interest & Fiscal Charges - - - - - Total Expenditures - - 142,806 - 27,195 Excess (Deficiency) of Revenues Over Expenditures 23,961 708 3,686 2,255,002 33,690 Other Financing Sources (Uses) Sale of Capital Assets - - - - - Transfers In - - - - - Transfers Out (35,298) - - (1,341,873) (49,313)

Total Other Financing Sources (Uses) (35,298) - - (1,341,873) (49,313) Net Changes In Fund Balances (11,337) 708 3,686 913,129 (15,623) Fund Balances as of January 1 79,492 8,580 76,712 - 160,419

Fund Balances as of December 31 $ 68,155 $ 9,288 $ 80,398 $ 913,129 $ 144,796

134 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures and Changes In Fund Balances Nonmajor Special Revenue Funds For The Year Ended December 31, 2009 Page 7 of 7

Victim WRIA Advocate Workforce Water & Veterans Program Development W a ste Total Revenues: Taxes $ 269,064 $ - $ 420,879 $ - $ 9,778,043 Licenses & Permits - - - - 81,591 Intergovernmental 1,110 141,801 14,623,919 8,910 19,350,504 Charges for Services - 189,788 63,176 - 3,602,869 Fines & Forfeits - 32,495 - - 52,374 Miscellaneous Revenue 13,666 4,825 148,101 672 1,781,517

Total Revenues 283,840 368,909 15,256,075 9,582 34,646,898 Expenditures: Current: General Government - - - - 1,220,723 Culture & Recreation - - - - 2,233,950 Economic Environment 254,166 - 11,434,498 - 15,420,163 Health & Human Services - - 3,644,477 - 3,644,477 Public Safety - 352,053 54,909 - 7,979,695 Transportation - - - - 1,006,924 Utilities & Environment - - - 12,152 716,332 Capital Outlay - - 18,301 - 1,758,673 Debt Service: Principal - - 321 - 328,076 Interest & Fiscal Charges - - 69 - 16,943

Total Expenditures 254,166 352,053 15,152,575 12,152 34,325,956

Excess (Deficiency) of Revenues Over Expenditures 29,674 16,856 103,500 (2,570) 320,942

Other Financing Sources (Uses) Sale of Capital Assets 2,689 - 3,337 - 66,853 Transfers In - - 1,895,151 - 3,994,757 Transfers Out - - - - (1,671,854)

Total Other Financing Sources (Uses) 2,689 - 1,898,488 - 2,389,756 Net Changes In Fund Balances 32,363 16,856 2,001,988 (2,570) 2,710,698 Fund Balances as of January 1 454,724 292,028 242,592 27,130 14,441,617

Fund Balances as of December 31 $ 487,087 $ 308,884 $ 2,244,580 $ 24,560 $ 17,152,315

135 Thurston County, Washington 2009

Anti-Profiteering Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Fines & Forfeits $ 20,000 $ 20,000 $ - $ (20,000) Miscellaneous Revenue 500 500 614 114

Total Revenues 20,500 20,500 614 (19,886)

Expenditures: Current: Public Safety 20,000 20,000 - 20,000

Total Expenditures 20,000 20,000 - 20,000

Excess (Deficiency) of Revenues Over Expenditures 500 500 614 114

Net Changes In Fund Balances 500 500 614 114

Fund Balances as of January 1 20,000 20,696 20,696 -

Fund Balances as of December 31 $ 20,500 $ 21,196 $ 21,310 $ 114

136 Thurston County, Washington 2009

Auditor - Election Reserve Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Charges for Services $ 203,635 $ 203,635 $ 92,327 $ (111,308) Miscellaneous Revenue - - 10,865 10,865

Total Revenues 203,635 203,635 103,192 (100,443)

Expenditures: Current: General Government 187,460 187,460 149,721 37,739 Capital Outlay 40,000 40,000 - 40,000

Total Expenditures 227,460 227,460 149,721 77,739

Excess (Deficiency) of Revenues Over Expenditures (23,825) (23,825) (46,529) (22,704)

Net Changes In Fund Balances (23,825) (23,825) (46,529) (22,704)

Fund Balances as of January 1 245,359 450,810 450,810 -

Fund Balances as of December 31 $ 221,534 $ 426,985 $ 404,281 $ (22,704)

137 Thurston County, Washington 2009

Auditor - M & O Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 110,000 $ 110,000 $ 142,159 $ 32,159 Charges for Services 161,920 161,920 169,548 7,628 Miscellaneous Revenue - - 3,048 3,048

Total Revenues 271,920 271,920 314,755 42,835

Expenditures: Current: General Government 794,415 770,919 695,411 75,508 Capital Outlay 6,000 26,221 26,220 1

Total Expenditures 800,415 797,140 721,631 75,509

Excess (Deficiency) of Revenues Over Expenditures (528,495) (525,220) (406,876) 118,344

Other Financing Sources (Uses) Transfers Out - (3,275) (3,275) -

Total Other Financing Sources (Uses) - (3,275) (3,275) -

Net Changes In Fund Balances (528,495) (528,495) (410,151) 118,344

Fund Balances as of January 1 626,448 835,539 835,539 -

Fund Balances as of December 31 $ 97,953 $ 307,044 $ 425,388 $ 118,344

138 Thurston County, Washington 2009

Clerk's Collection Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 195,591 $ 195,591 $ 312,949 $ 117,358 Fines & Forfeits - - 19,879 19,879 Miscellaneous Revenue 16,000 16,000 12,249 (3,751)

Total Revenues 211,591 211,591 345,077 133,486

Expenditures: Current: Public Safety 430,828 430,828 251,151 179,677

Total Expenditures 430,828 430,828 251,151 179,677

Excess (Deficiency) of Revenues Over Expenditures (219,237) (219,237) 93,926 313,163

Net Changes In Fund Balances (219,237) (219,237) 93,926 313,163

Fund Balances as of January 1 326,360 452,447 591,960 139,513

Fund Balances as of December 31 $ 107,123 $ 233,210 $ 685,886 $ 452,676

139 Thurston County, Washington 2009

Communications Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 6,076,901 $ 6,076,901 $ 5,711,494 $ (365,407) Intergovernmental 22,000 1,714,815 1,639,166 (75,649) Charges for Services 282,566 282,566 284,712 2,146 Miscellaneous Revenue 181,174 181,174 155,662 (25,512)

Total Revenues 6,562,641 8,255,456 7,791,034 (464,422)

Expenditures: Current: Public Safety 6,498,722 7,035,922 6,225,339 810,583 Capital Outlay 109,142 1,345,859 1,657,532 (311,673) Debt Service: Principal 263,593 263,593 264,019 (426) Interest & Fiscal Charges 13,920 13,920 13,990 (70)

Total Expenditures 6,885,377 8,659,294 8,160,880 498,414

Excess (Deficiency) of Revenues Over Expenditures (322,736) (403,838) (369,846) 33,992

Other Financing Sources (Uses) Sale of Capital Assets - - 50,000 50,000 Transfers Out - (23,600) (23,600) -

Total Other Financing Sources (Uses) - (23,600) 26,400 50,000

Net Changes In Fund Balances (322,736) (427,438) (343,446) 83,992

Fund Balances as of January 1 2,155,098 3,277,269 3,277,269 -

Fund Balances as of December 31 $ 1,832,362 $ 2,849,831 $ 2,933,823 $ 83,992

140 Thurston County, Washington 2009

Community Renewal & Housing Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ - $ - $ 101 $ 101 Intergovernmental 2,721,844 2,721,844 2,126,055 (595,789) Charges for Services 1,130,576 1,130,576 1,325,721 195,145 Miscellaneous Revenue 170,000 170,000 67,679 (102,321)

Total Revenues 4,022,420 4,022,420 3,519,556 (502,864)

Expenditures: Current: General Government 29,564 29,564 21,140 8,424 Economic Environment 3,957,147 3,957,147 3,629,324 327,823 Debt Service: Principal - - 341 (341) Interest & Fiscal Charges - - 75 (75)

Total Expenditures 3,986,711 3,986,711 3,650,880 335,831

Excess (Deficiency) of Revenues Over Expenditures 35,709 35,709 (131,324) (167,033)

Other Financing Sources (Uses) Transfers Out - - (2,060) (2,060)

Total Other Financing Sources (Uses) - - (2,060) (2,060)

Net Changes In Fund Balances 35,709 35,709 (133,384) (169,093)

Fund Balances as of January 1 2,034,051 2,212,253 2,212,252 (1)

Fund Balances as of December 31 $ 2,069,760 $ 2,247,962 $ 2,078,868 $ (169,094)

141 Thurston County, Washington 2009

Conservation Futures Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 1,120,483 $ 1,120,483 $ 1,090,829 $ (29,654) Intergovernmental 7,500 7,500 4,347 (3,153) Miscellaneous Revenue 85,000 85,000 90,905 5,905

Total Revenues 1,212,983 1,212,983 1,186,081 (26,902)

Expenditures: Current: Culture & Recreation 8,318 8,318 697,516 (689,198) Capital Outlay 500,000 1,562,067 - 1,562,067

Total Expenditures 508,318 1,570,385 697,516 872,869

Excess (Deficiency) of Revenues Over Expenditures 704,665 (357,402) 488,565 845,967

Other Financing Sources (Uses) Sale of Capital Assets - - 10,827 10,827 Transfers Out (219,003) (217,210) (183,172) 34,038

Total Other Financing Sources (Uses) (219,003) (217,210) (172,345) 44,865

Net Changes In Fund Balances 485,662 (574,612) 316,220 890,832

Fund Balances as of January 1 2,407,835 2,903,071 2,903,071 -

Fund Balances as of December 31 $ 2,893,497 $ 2,328,459 $ 3,219,291 $ 890,832

142 Thurston County, Washington 2009

Emergency Management Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 2,000 $ 2,000 $ 2,000 $ - Miscellaneous Revenue - - 329 329

Total Revenues 2,000 2,000 2,329 329

Expenditures: Current: Public Safety 3,000 6,000 6,000 -

Total Expenditures 3,000 6,000 6,000 -

Excess (Deficiency) of Revenues Over Expenditures (1,000) (4,000) (3,671) 329

Net Changes In Fund Balances (1,000) (4,000) (3,671) 329

Fund Balances as of January 1 6,265 11,276 11,276 -

Fund Balances as of December 31 $ 5,265 $ 7,276 $ 7,605 $ 329

143 Thurston County, Washington 2009

Fair Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 40,000 $ 40,000 $ 41,785 $ 1,785 Charges for Services 138,600 138,600 122,116 (16,484) Miscellaneous Revenue 302,500 302,500 264,748 (37,752)

Total Revenues 481,100 481,100 428,649 (52,451)

Expenditures: Current: Culture & Recreation 597,328 597,328 526,415 70,913

Total Expenditures 597,328 597,328 526,415 70,913

Excess (Deficiency) of Revenues Over Expenditures (116,228) (116,228) (97,766) 18,462

Other Financing Sources (Uses) Transfers In 98,594 35,298 35,298 -

Total Other Financing Sources (Uses) 98,594 35,298 35,298 -

Net Changes In Fund Balances (17,634) (80,930) (62,468) 18,462

Fund Balances as of January 1 98,000 137,226 137,476 250

Fund Balances as of December 31 $ 80,366 $ 56,296 $ 75,008 $ 18,712

144 Thurston County, Washington 2009

Family Court Services Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 12,000 $ 12,000 $ 11,775 $ (225) Charges for Services 220,550 220,550 251,640 31,090 Miscellaneous Revenue 7,000 7,000 21,211 14,211

Total Revenues 239,550 239,550 284,626 45,076

Expenditures: Current: Public Safety 307,389 307,389 230,337 77,052 Capital Outlay 8,000 8,000 - 8,000 Debt Service: Principal 7,200 7,200 - 7,200 Interest & Fiscal Charges 2,000 2,000 - 2,000

Total Expenditures 324,589 324,589 230,337 94,252

Excess (Deficiency) of Revenues Over Expenditures (85,039) (85,039) 54,289 139,328

Net Changes In Fund Balances (85,039) (85,039) 54,289 139,328

Fund Balances as of January 1 214,368 332,867 332,867 -

Fund Balances as of December 31 $ 129,329 $ 247,828 $ 387,156 $ 139,328

145 Thurston County, Washington 2009

GeoData Center Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 60,000 $ 60,000 $ 25,208 $ (34,792) Charges for Services 50,000 50,000 94,116 44,116 Miscellaneous Revenue 6,000 6,000 6,134 134

Total Revenues 116,000 116,000 125,458 9,458

Expenditures: Current: Transportation 893,105 827,704 811,944 15,760

Total Expenditures 893,105 827,704 811,944 15,760

Excess (Deficiency) of Revenues Over Expenditures (777,105) (711,704) (686,486) 25,218

Other Financing Sources (Uses) Transfers In 800,000 800,000 665,000 (135,000)

Total Other Financing Sources (Uses) 800,000 800,000 665,000 (135,000)

Net Changes In Fund Balances 22,895 88,296 (21,486) (109,782)

Fund Balances as of January 1 79,448 115,640 115,740 100

Fund Balances as of December 31 $ 102,343 $ 203,936 $ 94,254 $ (109,682)

146 Thurston County, Washington 2009

Lake Lawrence - L.M.D. Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 95,600 $ 95,600 $ - $ (95,600) Miscellaneous Revenue 1,000 1,000 98,660 97,660

Total Revenues 96,600 96,600 98,660 2,060

Expenditures: Current: Utilities & Environment 100,751 100,751 69,951 30,800

Total Expenditures 100,751 100,751 69,951 30,800

Excess (Deficiency) of Revenues Over Expenditures (4,151) (4,151) 28,709 32,860

Net Changes In Fund Balances (4,151) (4,151) 28,709 32,860

Fund Balances as of January 1 4,151 11,141 11,141 -

Fund Balances as of December 31 $ - $ 6,990 $ 39,850 $ 32,860

147 Thurston County, Washington 2009

Law Library Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Charges for Services $ 116,497 $ 116,497 $ 111,424 $ (5,073) Miscellaneous Revenue - - 7 7

Total Revenues 116,497 116,497 111,431 (5,066)

Expenditures: Current: Public Safety 138,855 138,855 136,344 2,511

Total Expenditures 138,855 138,855 136,344 2,511

Excess (Deficiency) of Revenues Over Expenditures (22,358) (22,358) (24,913) (2,555)

Net Changes In Fund Balances (22,358) (22,358) (24,913) (2,555)

Fund Balances as of January 1 22,358 26,179 26,179 -

Fund Balances as of December 31 $ - $ 3,821 $ 1,266 $ (2,555)

148 Thurston County, Washington 2009

LEOFF I Long Term Care Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ 200 $ 200 $ 1,006 $ 806

Total Revenues 200 200 1,006 806

Expenditures: Current: Public Safety 232,000 232,000 232,000 -

Total Expenditures 232,000 232,000 232,000 -

Excess (Deficiency) of Revenues Over Expenditures (231,800) (231,800) (230,994) 806

Other Financing Sources (Uses) Transfers In 232,000 353,028 353,028 -

Total Other Financing Sources (Uses) 232,000 353,028 353,028 -

Net Changes In Fund Balances 200 121,228 122,034 806

Fund Balances as of January 1 10,000 - (102,290) (102,290)

Fund Balances as of December 31 $ 10,200 $ 121,228 $ 19,744 $ (101,484)

149 Thurston County, Washington 2009

Long Lake - L.M.D. Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 182,500 $ 182,500 $ - $ (182,500) Miscellaneous Revenue 2,500 2,500 186,389 183,889

Total Revenues 185,000 185,000 186,389 1,389

Expenditures: Current: Utilities & Environment 288,236 288,236 214,392 73,844

Total Expenditures 288,236 288,236 214,392 73,844

Excess (Deficiency) of Revenues Over Expenditures (103,236) (103,236) (28,003) 75,233

Net Changes In Fund Balances (103,236) (103,236) (28,003) 75,233

Fund Balances as of January 1 103,236 135,159 135,159 -

Fund Balances as of December 31 $ - $ 31,923 $ 107,156 $ 75,233

150 Thurston County, Washington 2009

Noxious Weed Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 286,446 $ 286,446 $ - $ (286,446) Intergovernmental 33,963 63,249 51,155 (12,094) Charges for Services 65,330 71,655 88,072 16,417 Miscellaneous Revenue 3,708 3,708 297,551 293,843

Total Revenues 389,447 425,058 436,778 11,720

Expenditures: Current: Utilities & Environment 418,412 460,328 419,837 40,491 Capital Outlay 3,144 3,144 5,410 (2,266)

Total Expenditures 421,556 463,472 425,247 38,225

Excess (Deficiency) of Revenues Over Expenditures (32,109) (38,414) 11,531 49,945

Net Changes In Fund Balances (32,109) (38,414) 11,531 49,945

Fund Balances as of January 1 85,432 105,404 105,404 -

Fund Balances as of December 31 $ 53,323 $ 66,990 $ 116,935 $ 49,945

151 Thurston County, Washington 2009

Prisoner Concession Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ - $ - $ - $ - Charges for Services 204,000 222,000 187,784 (34,216) Miscellaneous Revenue 208,597 208,597 167,383 (41,214)

Total Revenues 412,597 430,597 355,167 (75,430)

Expenditures: Current: Public Safety 394,529 412,529 353,421 59,108

Total Expenditures 394,529 412,529 353,421 59,108

Excess (Deficiency) of Revenues Over Expenditures 18,068 18,068 1,746 (16,322)

Net Changes In Fund Balances 18,068 18,068 1,746 (16,322)

Fund Balances as of January 1 51,221 139,150 139,150 -

Fund Balances as of December 31 $ 69,289 $ 157,218 $ 140,896 $ (16,322)

152 Thurston County, Washington 2009

Recreation Services Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Licenses & Permits $ 23,350 $ 6,067 $ 5,410 $ (657) Intergovernmental 24,197 18,197 49,743 31,546 Charges for Services 504,987 404,965 370,608 (34,357) Miscellaneous Revenue 88,503 64,792 44,757 (20,035)

Total Revenues 641,037 494,021 470,518 (23,503)

Expenditures: Current: Culture & Recreation 1,305,142 1,126,599 1,008,396 118,203 Economic Environment 130,407 127,807 102,175 25,632 Capital Outlay 369,000 28,325 51,210 (22,885) Debt Service: Principal 3,200 1,213 1,452 (239) Interest & Fiscal Charges 1,000 332 331 1

Total Expenditures 1,808,749 1,284,276 1,163,564 120,712

Excess (Deficiency) of Revenues Over Expenditures (1,167,712) (790,255) (693,046) 97,209

Other Financing Sources (Uses) Transfers In 1,104,890 565,355 472,156 (93,199)

Total Other Financing Sources (Uses) 1,104,890 565,355 472,156 (93,199)

Net Changes In Fund Balances (62,822) (224,900) (220,890) 4,010

Fund Balances as of January 1 120,000 251,944 252,244 300

Fund Balances as of December 31 $ 57,178 $ 27,044 $ 31,354 $ 4,310

153 Thurston County, Washington 2009

REET Technology Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 32,000 $ 32,000 $ 28,502 $ (3,498) Miscellaneous Revenue 5,600 5,600 5,055 (545)

Total Revenues 37,600 37,600 33,557 (4,043)

Excess (Deficiency) of Revenues Over Expenditures 37,600 37,600 33,557 (4,043)

Net Changes In Fund Balances 37,600 37,600 33,557 (4,043)

Fund Balances as of January 1 156,000 158,849 158,849 -

Fund Balances as of December 31 $ 193,600 $ 196,449 $ 192,406 $ (4,043)

154 Thurston County, Washington 2009

Regional Athletic Complex Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Expenditures: Current: Culture & Recreation $ - $ - $ 1,623 $ (1,623) *

Total Expenditures - - 1,623 (1,623)

Excess (Deficiency) of Revenues Over Expenditures - - (1,623) (1,623)

Other Financing Sources (Uses) Transfers Out - - (6,478) (6,478) *

Total Other Financing Sources (Uses) - - (6,478) (6,478)

Net Changes In Fund Balances - - (8,101) (8,101)

Fund Balances as of January 1 - 8,101 8,101 -

Fund Balances as of December 31 $ - $ 8,101 $ - $ (8,101)

* - Transfer was authorized by resolution that closed this fund

155 Thurston County, Washington 2009

Road Improvement District No. 2 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 20,000 $ 20,000 $ 19,711 $ (289) Miscellaneous Revenue 12,500 12,500 11,106 (1,394)

Total Revenues 32,500 32,500 30,817 (1,683)

Expenditures: Debt Service: Principal 65,200 65,200 61,943 3,257 Interest & Fiscal Charges 2,500 2,500 2,478 22

Total Expenditures 67,700 67,700 64,421 3,279

Excess (Deficiency) of Revenues Over Expenditures (35,200) (35,200) (33,604) 1,596

Other Financing Sources (Uses) Transfers Out (26,900) (26,900) (26,785) 115

Total Other Financing Sources (Uses) (26,900) (26,900) (26,785) 115

Net Changes In Fund Balances (62,100) (62,100) (60,389) 1,711

Fund Balances as of January 1 67,000 78,203 78,203 -

Fund Balances as of December 31 $ 4,900 $ 16,103 $ 17,814 $ 1,711

156 Thurston County, Washington 2009

Roads Development Review Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Licenses & Permits $ 470,200 $ 76,181 $ 76,181 $ - Intergovernmental 8,000 - - - Charges for Services 580,200 106,809 106,810 1 Miscellaneous Revenue 1,600 - 3,150 3,150

Total Revenues 1,060,000 182,990 186,141 3,151

Expenditures: Current: Transportation 1,187,712 194,981 194,980 1

Total Expenditures 1,187,712 194,981 194,980 1

Excess (Deficiency) of Revenues Over Expenditures (127,712) (11,991) (8,839) 3,152

Other Financing Sources (Uses) Transfers In 125,000 325,000 228,322 (96,678)

Total Other Financing Sources (Uses) 125,000 325,000 228,322 (96,678)

Net Changes In Fund Balances (2,712) 313,009 219,483 (93,526)

Fund Balances as of January 1 6,854 - (219,483) (219,483)

Fund Balances as of December 31 $ 4,142 $ 313,009 $ - $ (313,009)

157 Thurston County, Washington 2009

R.S.N. - I.R.M.A. - Thurston Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ 35,000 $ 35,000 $ 37,840 $ 2,840

Total Revenues 35,000 35,000 37,840 2,840

Expenditures: Current: Health & Human Services 950,000 950,000 - 950,000

Total Expenditures 950,000 950,000 - 950,000

Excess (Deficiency) of Revenues Over Expenditures (915,000) (915,000) 37,840 952,840

Other Financing Sources (Uses) Transfers In - - 345,802 345,802

Total Other Financing Sources (Uses) - - 345,802 345,802

Net Changes In Fund Balances (915,000) (915,000) 383,642 1,298,642

Fund Balances as of January 1 1,070,000 1,088,864 1,088,864 -

Fund Balances as of December 31 $ 155,000 $ 173,864 $ 1,472,506 $ 1,298,642

158 Thurston County, Washington 2009

Sheriff's Special Programs Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 70,000 $ 84,127 $ 84,127 $ - Charges for Services - 500 700 200 Miscellaneous Revenue 7,000 7,000 3,390 (3,610)

Total Revenues 77,000 91,627 88,217 (3,410)

Expenditures: Current: Public Safety 97,148 126,997 110,946 16,051

Total Expenditures 97,148 126,997 110,946 16,051

Excess (Deficiency) of Revenues Over Expenditures (20,148) (35,370) (22,729) 12,641

Net Changes In Fund Balances (20,148) (35,370) (22,729) 12,641

Fund Balances as of January 1 107,473 107,973 107,973 -

Fund Balances as of December 31 $ 87,325 $ 72,603 $ 85,244 $ 12,641

159 Thurston County, Washington 2009

Stadium Convention & Arts Center Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 11,500 $ 11,500 $ 22,209 $ 10,709 Miscellaneous Revenue 3,000 3,000 1,752 (1,248)

Total Revenues 14,500 14,500 23,961 9,461

Excess (Deficiency) of Revenues Over Expenditures 14,500 14,500 23,961 9,461

Other Financing Sources (Uses) Transfers Out (35,298) (35,298) (35,298) -

Total Other Financing Sources (Uses) (35,298) (35,298) (35,298) -

Net Changes In Fund Balances (20,798) (20,798) (11,337) 9,461

Fund Balances as of January 1 71,117 79,492 79,492 -

Fund Balances as of December 31 $ 50,319 $ 58,694 $ 68,155 $ 9,461

160 Thurston County, Washington 2009

Treatment Sales Tax Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 2,000,000 $ 2,000,000 $ 2,243,305 $ 243,305 Miscellaneous Revenue - - 11,697 11,697

Total Revenues 2,000,000 2,000,000 2,255,002 255,002

Expenditures: Current: General Government 101,530 140,161 - 140,161

Total Expenditures 101,530 140,161 - 140,161

Excess (Deficiency) of Revenues Over Expenditures 1,898,470 1,859,839 2,255,002 395,163

Other Financing Sources (Uses) Transfers Out (519,470) (1,575,788) (1,341,873) 233,915

Total Other Financing Sources (Uses) (519,470) (1,575,788) (1,341,873) 233,915

Net Changes In Fund Balances 1,379,000 284,051 913,129 629,078

Fund Balances as of December 31 $ 1,379,000 $ 284,051 $ 913,129 $ 629,078

161 Thurston County, Washington 2009

Trial Court Improvement Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 70,900 $ 70,900 $ 55,793 $ (15,107) Miscellaneous Revenue 3,500 3,500 5,092 1,592

Total Revenues 74,400 74,400 60,885 (13,515)

Expenditures: Current: Public Safety 86,200 86,200 27,195 59,005

Total Expenditures 86,200 86,200 27,195 59,005

Excess (Deficiency) of Revenues Over Expenditures (11,800) (11,800) 33,690 45,490

Other Financing Sources (Uses) Transfers Out - (67,119) (49,313) 17,806

Total Other Financing Sources (Uses) - (67,119) (49,313) 17,806

Net Changes In Fund Balances (11,800) (78,919) (15,623) 63,296

Fund Balances as of January 1 145,000 160,419 160,419 -

Fund Balances as of December 31 $ 133,200 $ 81,500 $ 144,796 $ 63,296

162 Thurston County, Washington 2009

Veterans Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ 278,517 $ 278,517 $ 269,064 $ (9,453) Intergovernmental 100 100 1,110 1,010 Miscellaneous Revenue 12,100 12,100 13,666 1,566

Total Revenues 290,717 290,717 283,840 (6,877)

Expenditures: Current: Economic Environment 355,660 355,660 254,166 101,494

Total Expenditures 355,660 355,660 254,166 101,494

Excess (Deficiency) of Revenues Over Expenditures (64,943) (64,943) 29,674 94,617

Other Financing Sources (Uses) Sale of Capital Assets - - 2,689 2,689

Total Other Financing Sources (Uses) - - 2,689 2,689

Net Changes In Fund Balances (64,943) (64,943) 32,363 97,306

Fund Balances as of January 1 258,745 447,224 454,724 7,500

Fund Balances as of December 31 $ 193,802 $ 382,281 $ 487,087 $ 104,806

163 Thurston County, Washington 2009

Victim Advocate Program Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 70,468 $ 144,697 $ 141,801 $ (2,896) Charges for Services 190,000 190,000 189,788 (212) Fines & Forfeits 10,000 10,000 32,495 22,495 Miscellaneous Revenue 3,000 3,000 4,825 1,825

Total Revenues 273,468 347,697 368,909 21,212

Expenditures: Current: Public Safety 226,464 368,297 352,053 16,244

Total Expenditures 226,464 368,297 352,053 16,244

Excess (Deficiency) of Revenues Over Expenditures 47,004 (20,600) 16,856 37,456

Net Changes In Fund Balances 47,004 (20,600) 16,856 37,456

Fund Balances as of January 1 103,000 145,237 292,028 146,791

Fund Balances as of December 31 $ 150,004 $ 124,637 $ 308,884 $ 184,247

164 Thurston County, Washington 2009

Workforce Development Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Taxes $ - $ 450,782 $ 420,879 $ (29,903) Intergovernmental 10,143,524 18,179,829 14,623,919 (3,555,910) Charges for Services - - 63,176 63,176 Miscellaneous Revenue 167,988 222,988 148,101 (74,887)

Total Revenues 10,311,512 18,853,599 15,256,075 (3,597,524)

Expenditures: Current: Economic Environment 10,311,512 14,755,767 11,434,498 3,321,269 Health & Human Services - 4,182,087 3,644,477 537,610 Public Safety - - 54,909 (54,909) Capital Outlay - - 18,301 (18,301) Debt Service: Principal - 800 321 479 Interest & Fiscal Charges - 800 69 731

Total Expenditures 10,311,512 18,939,454 15,152,575 3,786,879

Excess (Deficiency) of Revenues Over Expenditures - (85,855) 103,500 189,355

Other Financing Sources (Uses) Sale of Capital Assets - - 3,337 3,337 Transfers In - - 1,895,151 1,895,151 Transfers Out - (2,760) - 2,760

Total Other Financing Sources (Uses) - (2,760) 1,898,488 1,901,248

Net Changes In Fund Balances - (88,615) 2,001,988 2,090,603

Fund Balances as of January 1 - 227,592 242,592 15,000

Fund Balances as of December 31 $ - $ 138,977 $ 2,244,580 $ 2,105,603

165 Thurston County, Washington 2009

W.R.I.A. Water & Waste Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Intergovernmental $ 50,000 $ 90,000 $ 8,910 $ (81,090) Miscellaneous Revenue 300 300 672 372

Total Revenues 50,300 90,300 9,582 (80,718)

Expenditures: Current: Utilities & Environment 58,410 98,410 12,152 86,258

Total Expenditures 58,410 98,410 12,152 86,258

Excess (Deficiency) of Revenues Over Expenditures (8,110) (8,110) (2,570) 5,540

Net Changes In Fund Balances (8,110) (8,110) (2,570) 5,540

Fund Balances as of January 1 22,710 27,130 27,130 -

Fund Balances as of December 31 $ 14,600 $ 19,020 $ 24,560 $ 5,540

166 Thurston County, Washington 2009

NONMAJOR DEBT SERVICE FUNDS

Debt service funds are established to account for the accumulation of resources for the payment of current principal and interest on general obligation debt. All general obligation debt issues are funded by local option sales taxes and/or real estate excise taxes.

G. O. Bonds - 1998 – A fund that accounts for current annual principal and interest payments on general obligation bonds issued in 1998 for the acquisition of farm land development rights and to construct an emergency dispatch center.

G. O. Bonds - 2002 – A fund that accounts for current annual principal and interest payments on general obligation bonds issued in 2002 for the construction of jail facilities, coroner building and the HVAC system for the courthouse complex.

G. O. Bonds - 2004 – A fund that accounts for current annual principal and interest payments on general obligation bonds issued in 2004 for the acquisition and construction of additional office space, land acquisition for the justice center and for parks, repairs to the juvenile detention facility and for the acquisition of a phone system for the courthouse complex.

G. O. Bonds - 2005 – A fund that accounts for current annual principal and interest payments on general obligation bonds issued in 2005 for a partial advance refunding of outstanding 1997 bonds, an advance refunding of outstanding 1999 bonds and for park acquisition and other capital improvements.

G. O. Bonds - 2007 – A fund that accounts for current annual principal and interest payments on general obligation bonds issued in 2007 to fund a second county jail and to remodel a fish processing warehouse into office space.

G. O. Bonds - 2009 – A fund that accounts for current annual principal and interest payments on general obligation bonds issued in 2009 to fund the Accountability Restitution Center, communication system upgrades, and other approved capital projects.

167 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Debt Service Funds December 31, 2009

G. O. G. O. G. O. G. O. G. O. G. O. Bonds Bonds Bonds Bonds Bonds Bonds ASSETS 1998 2002 2004 2005 2007 2009 Total

Curre nt Asse ts: Cash & Pooled Investments $ 1,381 $ 618 $ 503 $ 856 $ 616 $ 50 $ 4,024 Receivables: Accrued Interest & Penalties 11 34 224 89 15 - 373

Tota l Asse ts $ 1,392 $ 652 $ 727 $ 945 $ 631 $ 50 $ 4,397

FUND BALANCES Reserved for Debt Service $ 1,392 $ 652 $ 727 $ 945 $ 631 $ 50 $ 4,397

Total Fund Balance 1,392 652 727 945 631 50 4,397

Total Liabilities & Fund Balances $ 1,392 $ 652 $ 727 $ 945 $ 631 $ 50 $ 4,397

168 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures And Changes In Fund Balances Nonmajor Debt Service Funds For The Year Ended December 31, 2009

G. O. G. O. G. O. G. O. G. O. G. O. Bonds Bonds Bonds Bonds Bonds Bonds 1998 2002 2004 2005 2007 2009 Total

Revenues: Miscellaneous Revenue $ 40 $ 97 $ 85 $ 161 $ 90 $ 1 $ 474

Total Revenues 40 97 85 161 90 1 474

Expenditures: Debt Service: Principal - 380,588 370,000 1,355,000 170,000 - 2,275,588 Interest & Fiscal Charges - 360,577 370,654 824,914 191,321 954,523 2,701,989

Total Expenditures - 741,165 740,654 2,179,914 361,321 954,523 4,977,577

Excess (Deficiency) of Revenues Over Expenditures 40 (741,068) (740,569) (2,179,753) (361,231) (954,522) (4,977,103)

Other Financing Sources (Uses) Transfers In - 735,639 733,082 2,173,615 356,459 954,572 4,953,367

Total Other Financing Sources (Uses) - 735,639 733,082 2,173,615 356,459 954,572 4,953,367

Net Changes In Fund Balances 40 (5,429) (7,487) (6,138) (4,772) 50 (23,736)

Fund Balances as of January 1 1,352 6,081 8,214 7,083 5,403 - 28,133

Fund Balances as of December 31 $ 1,392 $ 652 $ 727 $ 945 $ 631 $ 50 $ 4,397

169 Thurston County, Washington 2009

G. O. Bonds 1998 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ - $ - $ 40 $ 40

Total Revenues - - 40 40

Excess (Deficiency) of Revenues Over Expenditures - - 40 40

Net Changes In Fund Balances - - 40 40

Fund Balances as of January 1 - 1,352 1,352 -

Fund Balances as of December 31 $ - $ 1,352 $ 1,392 $ 40

170 Thurston County, Washington 2009

G. O. Bonds 2002 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ 200 $ 200 $ 97 $ (103)

Total Revenues 200 200 97 (103)

Expenditures: Debt Service: Principal 381,000 381,000 380,588 412 Interest & Fiscal Charges 362,500 362,500 360,577 1,923

Total Expenditures 743,500 743,500 741,165 2,335

Excess (Deficiency) of Revenues Over Expenditures (743,300) (743,300) (741,068) 2,232

Other Financing Sources (Uses) Transfers In 741,400 741,400 735,639 (5,761)

Total Other Financing Sources (Uses) 741,400 741,400 735,639 (5,761)

Net Changes In Fund Balances (1,900) (1,900) (5,429) (3,529)

Fund Balances as of January 1 5,959 6,081 6,081 -

Fund Balances as of December 31 $ 4,059 $ 4,181 $ 652 $ (3,529)

171 Thurston County, Washington 2009

G. O. Bonds 2004 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ 2,500 $ 2,500 $ 85 $ (2,415)

Total Revenues 2,500 2,500 85 (2,415)

Expenditures: Debt Service: Principal 435,000 370,000 370,000 - Interest & Fiscal Charges 388,700 370,800 370,654 146

Total Expenditures 823,700 740,800 740,654 146

Excess (Deficiency) of Revenues Over Expenditures (821,200) (738,300) (740,569) (2,269)

Other Financing Sources (Uses) Transfers In 823,800 740,900 733,082 (7,818)

Total Other Financing Sources (Uses) 823,800 740,900 733,082 (7,818)

Net Changes In Fund Balances 2,600 2,600 (7,487) (10,087)

Fund Balances as of January 1 5,000 8,214 8,214 -

Fund Balances as of December 31 $ 7,600 $ 10,814 $ 727 $ (10,087)

172 Thurston County, Washington 2009

G. O. Bonds 2005 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ 50 $ 50 $ 161 $ 111

Total Revenues 50 50 161 111

Expenditures: Debt Service: Principal 1,355,000 1,355,000 1,355,000 - Interest & Fiscal Charges 825,000 825,000 824,914 86

Total Expenditures 2,180,000 2,180,000 2,179,914 86

Excess (Deficiency) of Revenues Over Expenditures (2,179,950) (2,179,950) (2,179,753) 197

Other Financing Sources (Uses) Transfers In 2,180,100 2,180,100 2,173,615 (6,485)

Total Other Financing Sources (Uses) 2,180,100 2,180,100 2,173,615 (6,485)

Net Changes In Fund Balances 150 150 (6,138) (6,288)

Fund Balances as of January 1 5,000 7,083 7,083 -

Fund Balances as of December 31 $ 5,150 $ 7,233 $ 945 $ (6,288)

173 Thurston County, Washington 2009

G. O. Bonds 2007 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ 50 $ 50 $ 90 $ 40

Total Revenues 50 50 90 40

Expenditures: Debt Service: Principal 170,000 170,000 170,000 - Interest & Fiscal Charges 191,700 191,700 191,321 379

Total Expenditures 361,700 361,700 361,321 379

Excess (Deficiency) of Revenues Over Expenditures (361,650) (361,650) (361,231) 419

Other Financing Sources (Uses) Transfers In 362,028 362,028 356,459 (5,569)

Total Other Financing Sources (Uses) 362,028 362,028 356,459 (5,569)

Net Changes In Fund Balances 378 378 (4,772) (5,150)

Fund Balances as of January 1 200 5,403 5,403 -

Fund Balances as of December 31 $ 578 $ 5,781 $ 631 $ (5,150)

174 Thurston County, Washington 2009

G.O. Bonds - 2009 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ - $ - $ 1 $ 1

Total Revenues - - 1 1

Expenditures: Debt Service: Interest & Fiscal Charges - 955,000 954,523 477

Total Expenditures - 955,000 954,523 477

Excess (Deficiency) of Revenues Over Expenditures - (955,000) (954,522) 478

Other Financing Sources (Uses) Transfers In - 955,000 954,572 (428)

Total Other Financing Sources (Uses) - 955,000 954,572 (428)

Net Changes In Fund Balances - - 50 50

Fund Balances as of January 1 - - - -

Fund Balances as of December 31 $ - $ - $ 50 $ 50

175 Thurston County, Washington 2009

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176 Thurston County, Washington 2009

NONMAJOR CAPITAL PROJECT FUNDS

Capital project funds are established to account for the accumulation of resources used to develop and construct additions and improvements to capital facilities and associated systems and equipment.

County Buildings Fund – A fund that uses bond proceeds, local option sales taxes and/or real estate excise taxes to acquire, construct and repair a broad range of capital projects for Thurston County.

Jail Capital Projects Fund - A fund that accounts for the planning and design of a community corrections and assessment center and for the construction of a minimum bed jail facility. This is a major fund for 2009 and only its Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual is included in this section.

Tilley Master Plan – A fund that uses property and gas taxes transferred from the Roads Fund to construct road maintenance facilities and buildings at the Tilley road maintenance site.

177 Thurston County, Washington 2009

Combining Balance Sheet Nonmajor Capital Projects Funds December 31, 2009

County Buildings Tilley ASSETS Fund Master Plan Total

Curre nt Asse ts: Cash & Pooled Investments $ 684,718 $ 3,341,378 $ 4,026,096 Receivables: Accrued Interest & Penalties 23,318 385 23,703 Due from Other Funds 12,175 - 12,175

Tota l Asse ts $ 720,211 $ 3,341,763 $ 4,061,974

LIABILITIES Current Liabilities: Accounts Payable $ 35 $ 70,594 $ 70,629 Due to Other Funds 10,474 8,568 19,042

Total Liabilities 10,509 79,162 89,671

FUND BALANCES Unreserved - Undesignated 709,702 3,262,601 3,972,303

Total Fund Balance 709,702 3,262,601 3,972,303

Total Liabilities & Fund Balances $ 720,211 $ 3,341,763 $ 4,061,974

178 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenditures And Changes In Fund Balances Nonmajor Capital Projects Funds For The Year Ended December 31, 2009

County Buildings Tilley Fund Master Plan Total

Revenues: Miscellaneous Revenue $ 23,576 $ 16,260 $ 39,836

Total Revenues 23,576 16,260 39,836

Expenditures: Current: General Government 98,124 8,067 106,191 Capital Outlay 588,288 745,592 1,333,880

Total Expenditures 686,412 753,659 1,440,071

Excess (Deficiency) of Revenues Over Expenditures (662,836) (737,399) (1,400,235)

Other Financing Sources (Uses) Transfers In 329,356 4,000,000 4,329,356 Transfers Out (19,845) - (19,845)

Total Other Financing Sources (Uses) 309,511 4,000,000 4,309,511

Net Changes In Fund Balances (353,325) 3,262,601 2,909,276

Fund Balances as of January 1 1,063,027 - 1,063,027

Fund Balances as of December 31 $ 709,702 $ 3,262,601 $ 3,972,303

179 Thurston County, Washington 2009

County Buildings Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ 38,652 $ 38,652 $ 23,576 $ (15,076)

Total Revenues 38,652 38,652 23,576 (15,076)

Expenditures: Current: General Government 296,203 289,937 98,124 191,813 Capital Outlay 370,334 709,865 588,288 121,577

Total Expenditures 666,537 999,802 686,412 313,390

Excess (Deficiency) of Revenues Over Expenditures (627,885) (961,150) (662,836) 298,314

Other Financing Sources (Uses) Transfers In 463,702 831,964 329,356 (502,608) Transfers Out (100,000) (249,543) (19,845) 229,698

Total Other Financing Sources (Uses) 363,702 582,421 309,511 (272,910)

Net Changes In Fund Balances (264,183) (378,729) (353,325) 25,404

Fund Balances as of January 1 1,067,442 1,063,027 1,063,027 -

Fund Balances as of December 31 $ 803,259 $ 684,298 $ 709,702 $ 25,404

180 Thurston County, Washington 2009

Jail Capital Projects Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative) Expenditures: Current: Public Safety $ 800 $ - $ 62,568 $ (62,568) Capital Outlay 23,343,000 26,622,093 25,335,404 1,286,689

Total Expenditures 23,343,800 26,622,093 25,397,972 1,224,121

Excess (Deficiency) of Revenues Over Expenditures (23,343,800) (26,622,093) (25,397,972) 1,224,121

Other Financing Sources (Uses) Transfers In 46,800,000 46,800,000 29,333,066 (17,466,934)

Total Other Financing Sources (Uses) 46,800,000 46,800,000 29,333,066 (17,466,934) Net Changes In Fund Balances 23,456,200 20,177,907 3,935,094 (16,242,813) Fund Balances as of January 1 - - (5,358,094) (5,358,094)

Fund Balances as of December 31 $ 23,456,200 $ 20,177,907 $ (1,423,000) $ (21,600,907)

181 Thurston County, Washington 2009

Tilley Master Plan Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual For The Year Ended December 31, 2009

Variance with Original Final Final Budget 2009 2009 Actual Positive or Budget Budget 2009 (Negative)

Revenues: Miscellaneous Revenue $ - $ - $ 16,260 $ 16,260

Total Revenues - - 16,260 16,260

Expenditures: Current: General Government - - 8,067 (8,067) Capital Outlay 5,500,000 5,000,000 745,592 4,254,408

Total Expenditures 5,500,000 5,000,000 753,659 4,246,341

Excess (Deficiency) of Revenues Over Expenditures (5,500,000) (5,000,000) (737,399) 4,262,601

Other Financing Sources (Uses) Transfers In 5,500,000 5,000,000 4,000,000 (1,000,000)

Total Other Financing Sources (Uses) 5,500,000 5,000,000 4,000,000 (1,000,000)

Net Changes In Fund Balances - - 3,262,601 3,262,601

Fund Balances as of December 31 $ - $ - $ 3,262,601 $ 3,262,601

182 Thurston County, Washington 2009

NONMAJOR ENTERPRISE FUNDS

Enterprise funds are established to account for the financing of goods and services provided by Thurston County to the County’s residents and customers primarily through user charges on a cost reimbursement basis. All enterprise utilities and programs are funded by user fees and charges, including the Storm Water Utility which is funded by storm water tax assessments, except for Utility Planning which is funded by real estate excise taxes and interfund service payments.

Boston Harbor Utility – Funds established to account for user fees and charges for the maintenance and operation of the Boston Harbor water and wastewater systems.

Community Loan Programs – Funds established to account for loans provided to Thurston County residents to upgrade and improve failing septic systems.

Land Use & Permitting – A fund that uses development license fees and service charges to provide planning, permitting and development inspection services within the unincorporated sections of Thurston County.

Olympic View Utility – Funds established to account for user fees and charges for the maintenance and operation of the Olympic View wastewater system.

Storm and Surface Water Utility – Funds established to account for assessments levied to minimize the harmful effects of storm water run-off and to construct and improve storm water run-off facilities within the utility’s boundaries in unincorporated Thurston County.

Tamoshan Utility – Funds established to account for user fees and charges for the maintenance and operation of the Tamoshan water and wastewater system and the wastewater system serving Beverly Beach.

183 Thurston County, Washington 2009

Combining Statement of Net Assets Nonmajor Enterprise Funds December 31, 2009 Page 1 of 2

Boston Community Olympic Harbor Loan Land Use & View ASSETS Utility Programs Permitting Utility Curre nt Asse ts: Cash & Pooled Investments $ 537,279 $ 428,746 $ 582,976 $ 67,812 Receivables: Special Assessment Receivables - - - - Accrued Interest & Penalties 1,776 1,839 7,540 361 Customer Account Receivables 31,778 14,126 - - Due From Other Funds 367 - 21,013 586 Due From Other Government Units - - 67,736 - Restricted Assets: Cash and Pooled Investments - - - 6,724 Long-Term Assets: Community Loans Receivable - 191,231 - - Special Assessment Receivables 17,992 - - 11,539 Ca pita l Asse ts: Non-Depreciable 100,396 - - 3,202 Depreciable, Net 1,776,500 - 79,924 99,000 Tota l Asse ts 2,466,088 635,942 759,189 189,224 LIABILITIES Current Liabilities: Accounts Payable 20,662 815 21,437 1,263 Notes/Leases Payable - 40,190 23,028 - Due To Other Funds 7,901 - 1,926 1,298 Compensated Absences - - 156,262 - Unearned Revenue 1,100 - - - Restricted Liabilities: Spec Assessment Debt with Govern. Commitment - - - 3,536 Long-Term Liabilities: Spec Assessment Debt with Govern. Commitment - - - 21,216 Compensated Absences - - 63,049 - Other Post Employment Benefits Payable - - 230,249 - Notes/Leases Payable - 527,166 40,444 - Advances From Other Funds - - 689,252 - Total Liabilities 29,663 568,171 1,225,647 27,313 NET ASSETS Invested in Capital Assets, Net Of Related Debt 1,876,896 (567,356) 16,452 102,202 Restricted For: Debt Service 18,404 Unrestricted (Deficit) 559,529 635,127 (482,910) 41,305 Total Net Assets $ 2,436,425 $ 67,771 $ (466,458) $ 161,911

184 Thurston County, Washington 2009

Combining Statement of Net Assets Nonmajor Enterprise Funds December 31, 2009 Page 2 of 2

Surface Water Tamoshan ASSETS Utility Utility Total Curre nt Asse ts: Cash & Pooled Investments $ 1,117,929 $ 108,011 $ 2,842,753 Receivables: Special Assessment Receivables 141,902 - 141,902 Accrued Interest & Penalties 7,184 1,302 20,002 Customer Account Receivables - 28,524 74,428 Due From Other Funds 26,078 2,717 50,761 Due From Other Government Units 256,184 - 323,920 Restricted Assets: Cash and Pooled Investments - 119,191 125,915 Long-Term Assets: Community Loans Receivable - - 191,231 Special Assessment Receivables - 826,257 855,788 Ca pita l Asse ts: Non-Depreciable 1,598,532 652,565 2,354,695 Depreciable, Net 4,894,090 1,335,259 8,184,773 Tota l Asse ts 8,041,899 3,073,826 15,166,168 LIABILITIES Current Liabilities: Accounts Payable 38,686 3,959 86,822 Notes/Leases Payable 3,376 - 66,594 Due To Other Funds 138,236 5,646 155,007 Compensated Absences 2,170 - 158,432 Unearned Revenue - - 1,100 Restricted Liabilities: Spec Assessment Debt with Govern. Commitment - 78,282 81,818 Long-Term Liabilities: Spec Assessment Debt with Govern. Commitment - 817,671 838,887 Compensated Absences 875 - 63,924 Other Post Employment Benefits Payable - - 230,249 Notes/Leases Payable 12,137 - 579,747 Advances From Other Funds - - 689,252 Total Liabilities 195,480 905,558 2,951,832 NET ASSETS Invested in Capital Assets, Net Of Related Debt 6,477,109 1,987,824 9,893,127 Restricted For: Debt Service 946,435 964,839 Unrestricted (Deficit) 1,369,310 (765,991) 1,356,370 Total Net Assets $ 7,846,419 $ 2,168,268 $ 12,214,336

185 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenses And Changes In Fund Net Assets Nonmajor Enterprise Funds For The Year Ended December 31, 2009 Page 1 of 2

Boston Community Olympic Harbor Loan Land Use & View Utility Programs Permitting Utility

Operating Revenues: Charges for Services $ 309,962 $ - $ 3,375,650 $ 22,412 Miscellaneous 2,227 - 3,353 -

Total Operating Revenues 312,189 - 3,379,003 22,412

Operating Expenses: Salaries and Benefits 223,547 - 2,969,723 7,342 Other Supplies and Expenses 27,508 - 52,793 2,698 Contractual Services 55,085 - 412,773 2,062 Interfund Services and Charges 31,906 - 849,233 3,073 Depreciation/Amortization 298,402 - 61,381 11,000

Total Operating Expenses 636,448 - 4,345,903 26,175

Operating Income (Loss) (324,259) - (966,900) (3,763)

Nonoperating Revenue (Expenses): Interest Revenue 18,779 19,075 5,021 2,933 Other Nonoperating Revenue (Expense) (8,945) 25,861 396,014 109,400 Interest Expense & Fiscal Charges - (14,576) (30,908) (2,329)

Total Nonoperating Revenue (Expense) 9,834 30,360 370,127 110,004

Income Before Contributions and Transfers: (314,425) 30,360 (596,773) 106,241 Transfers In (Out) 7,491 - 2,387,482 2,616

Change in Net Assets (306,934) 30,360 1,790,709 108,857

Net Assets as of January 1 2,743,359 37,411 (2,257,167) 53,054

Net Assets as of December 31 $ 2,436,425 $ 67,771 $ (466,458) $ 161,911

186 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenses And Changes In Fund Net Assets Nonmajor Enterprise Funds For The Year Ended December 31, 2009 Page 2 of 2

Storm & Surface Water Tamoshan Utility Utility Total

Operating Revenues: Charges for Services $ 2,616,469 $ 204,040 $ 6,528,533 Miscellaneous - 615 6,195

Total Operating Revenues 2,616,469 204,655 6,534,728

Operating Expenses: Salaries and Benefits 1,481,994 108,953 4,791,559 Other Supplies and Expenses 84,426 11,639 179,064 Contractual Services 692,683 33,900 1,196,503 Interfund Services and Charges 696,052 15,796 1,596,060 Depreciation/Amortization 375,839 44,422 791,044

Total Operating Expenses 3,330,994 214,710 8,554,230

Operating Income (Loss) (714,525) (10,055) (2,019,502)

Nonoperating Revenue (Expenses): Interest Revenue 55,034 10,633 111,475 Other Nonoperating Revenue (Expense) 750,564 (5,637) 1,267,257 Interest Expense & Fiscal Charges (13) (111) (47,937)

Total Nonoperating Revenue (Expense) 805,585 4,885 1,330,795

Income Before Contributions and Transfers: 91,060 (5,170) (688,707) Transfers In (Out) 376,418 129,595 2,903,602

Change in Net Assets 467,478 124,425 2,214,895

Net Assets as of January 1 7,378,941 2,043,843 9,999,441

Net Assets as of December 31 $ 7,846,419 $ 2,168,268 $ 12,214,336

187 Thurston County, Washington 2009

Combining Statement of Cash Flows Nonmajor Enterprise Funds For The Year Ended December 31, 2009 Page 1 of 4

Boston Community Olympic Harbor Loan Land Use & View Utility Programs Permitting Utility Cash Flows from Operating Activities: Cash Received from Customers $ 308,976 $ (11,326) $ 3,385,229 $ 22,119 Cash Paid for Goods & Services (122,822) (14,514) (2,424,776) (6,675) Cash Paid to Employees (223,547) - (3,002,580) (7,342) Net Cash Provided (Used) by Operating Activities (37,393) (25,840) (2,042,127) 8,102 Cash Flows from Noncapital Financing Activities: Transfers In 14,982 20,732 2,387,482 2,616 Transfers Out (7,491) (20,732) - - Grant Proceeds - - 352,902 - Tax and Assessment Receipts - 25,861 - - Receipts On Community Loans - (26,446) - - Payments On Community Loans - 31,745 - - Tax Payments (8,945) - - (600) () y p g Activities (1,454) 31,160 2,740,384 2,016

Activities: Cash Disbursements for Purchases of Capital Assets (67,981) - - (2,616) Bond/Loan Payments - - (820,046) (21,821) Bond/Loan Proceeds - - 689,252 - Assessment Receipts 28,516 - - 4,013 Interest Payments - (14,576) (30,908) (2,329)

Activities (39,465) (14,576) (161,702) (22,753) Cash Flows from Investing Activities: Interest Receipts 17,003 21,162 46,421 3,430 Net Cash Provided (Used) by Investing Activities 17,003 21,162 46,421 3,430 Net Increase (Decrease) in Cash & Cash Equivalents (61,309) 11,906 582,976 (9,205) Cash & Cash Equivalents as of January 1 598,588 416,840 - 83,741

Cash & Cash Equivalents as of December 31 $ 537,279 $ 428,746 $ 582,976 $ 74,536

188 Thurston County, Washington 2009

Combining Statement of Cash Flows Nonmajor Enterprise Funds For The Year Ended December 31, 2009 Page 2 of 4 Storm & Surface Water Tamoshan Utility Utility Total Cash Flows from Operating Activities: Cash Received from Customers $ 2,666,282 $ 204,984 $ 6,576,264 Cash Paid for Goods & Services (1,603,947) (59,985) (4,232,719) Cash Paid to Employees (1,481,994) (108,953) (4,824,416) Net Cash Provided (Used) by Operating Activities (419,659) 36,046 (2,480,871) Cash Flows from Noncapital Financing Activities: Transfers In 1,671,675 131,742 4,229,229 Transfers Out (1,295,257) (2,147) (1,325,627) Grant Proceeds 345,200 - 698,102 Tax and Assessment Receipts 402,660 - 428,521 Receipts On Community Loans - - (26,446) Payments On Community Loans - - 31,745 Tax Payments (39,499) (5,637) (54,681) () y p g Activities 1,084,779 123,958 3,980,843

Activities: Cash Disbursements for Purchases of Capital Assets (982,681) (129,610) (1,182,888) Bond/Loan Payments 3,376 (281,049) (1,119,540) Bond/Loan Proceeds 6,256 - 695,508 Assessment Receipts 23,532 110,788 166,849 Interest Payments (13) (111) (47,937) () y p g Activities (949,530) (299,982) (1,488,008) Cash Flows from Investing Activities: Interest Receipts 65,384 11,378 164,778 Net Cash Provided (Used) by Investing Activities 65,384 11,378 164,778 Net Increase (Decrease) in Cash & Cash Equivalents (219,026) (128,600) 176,742 Cash & Cash Equivalents as of January 1 1,336,955 355,802 2,791,926

Cash & Cash Equivalents as of December 31 $ 1,117,929 $ 227,202 $ 2,968,668

189 Thurston County, Washington 2009

Combining Statement of Cash Flows Nonmajor Enterprise Funds For The Year Ended December 31, 2009 Page 3 of 4

Boston Community Olympic Harbor Loan Land Use & View Utility Programs Permitting Utility Reconciliation of Operating Income To Net Cash Provided (Used) by Operating Income: Operating Income $ (324,259) $ - $ (966,900) $ (3,763) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense 298,402 - 61,381 11,000 (Increase) Decrease in: Customer Account Receivables (3,432) (14,126) - - Due from Other Funds 219 2,800 6,226 (293) Increase (Decrease) in: Accounts Payable (10,066) (14,514) (1,093,855) (48) Due to Other Funds 1,743 - (16,122) 1,206 Due to Other Government Units - - - - Claims and Judgments Compensated Absences Payable - - (32,857) - Accumulated Landfill Closure Total Adjustments 286,866 (25,840) (1,075,227) 11,865 Net Cash Provided (Used) by Operating Activities $ (37,393) $ (25,840) $ (2,042,127) $ 8,102

Noncash Investing, Capital, and Financing Activities: Gain on Purchase/Sale of Capital Assets $ - $ - $ - $ 110,000

190 Thurston County, Washington 2009

Combining Statement of Cash Flows Nonmajor Enterprise Funds For The Year Ended December 31, 2009 Page 4 of 4

Storm & Surface Water Tamoshan Utility Utility Total Reconciliation of Operating Income To Net Cash Provided (Used) by Operating Income: Operating Income $ (714,525) $ (10,055) $ (2,019,502) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense 375,839 44,422 791,044 (Increase) Decrease in: Customer Account Receivables - (3,615) (21,173) Due from Other Funds 46,768 3,944 59,664 Increase (Decrease) in: Accounts Payable (96,399) 1,676 (1,213,206) Due to Other Funds (34,387) (326) (47,886) Due to Other Government Units - - - Claims and Judgments Compensated Absences Payable 3,045 - (29,812) Accumulated Landfill Closure Total Adjustments 294,866 46,101 (461,369) Net Cash Provided (Used) by Operating Activities $ (419,659) $ 36,046 $ (2,480,871)

Noncash Investing, Capital, and Financing Activities: Gain on Purchase/Sale of Capital Assets $ - $ - $ 110,000

191 Thurston County, Washington 2009

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192 Thurston County, Washington 2009

INTERNAL SERVICE FUNDS

Internal service funds are established to account for the financing of goods and services provided by one department, agency, or government unit to other departments, agencies or other government units on a cost reimbursement basis.

Central Services – A fund established to account for technology and building and maintenance service charges and fees to maintain, acquire and service equipment and facilities and to provide associated services including computer operations, micrographics, central mailing and custodial cleaning and maintenance services.

Enterprise Administration – A fund established to account for administrative, payroll and benefit charges used to finance administrative, payroll and benefit costs for utility funds managed by the Department of Water & Waste Management.

Enterprise Engineering – A fund established to account for professional engineering and technical service fees used to finance engineering and technical services for utility funds managed by the Department of Water & Waste Management.

Equipment Rental and Revolving – Funds established to account for equipment usage and replacement charges used to finance the maintenance, operation and acquisition of vehicles and equipment.

Insurance Risk Management – A fund established to account for risk service charges used to finance the costs of insurance coverage for Thurston County.

Benefits Administration – A fund established to account for interfund contributions used to finance the benefits administration costs of County employees.

Unemployment Compensation – A fund established to account for interfund contributions used to self insure the County against unemployment claims and settlements from former County employees.

193 Thurston County, Washington 2009

Combining Statement Of Net Assets Internal Service Funds December 31, 2009 Page 1 of 2

Equipment Central Enterprise Enterprise Rental & ASSETS Services Admin Engineering Revolv.

Curre nt Asse ts: Cash & Pooled Investments $ 3,738,196 $ 174,891 $ 68,269 $ 11,613,924 Receivables: Accrued Interest & Penalties 3,084 104 - 62,200 Customer Account Receivables 1,185 - - 99,066 Due From Other Funds 79,049 221,915 32,793 18,865 Due From Other Government Units - - - 7,275 Inventory - - - 232,961 Prepayments 84,667 - - 45,861 Ca pita l Asse ts: Non-Depreciable 5,395,260 - - 93,539 Depreciable, Net 49,458,793 258 388 9,637,668 Tota l Asse ts 58,760,234 397,168 101,450 21,811,359

LIABILITIES

Current Liabilities: Accounts Payable 295,736 25,300 - 323,181 Notes/Leases Payable 4,435 - - - Due To Other Funds 24,278 - 27,142 6,612 Due To Other Government Units - - - 77 Compensated Absences 287,590 - - 83,281 Lim.Tax G.O.Bond-Current Portion 66,494 - - - Long-Term Liabilities: Limited G.O. Bonds Payable 293,621 - - - Compensated Absences 116,038 420,939 - 33,603 Other Post Employment Benefits Payable 389,653 360,724 - 88,557 Claims and Judgments Payable - - - - Total Liabilities 1,477,845 806,963 27,142 535,311

NET ASSETS

Invested in Capital Assets, Net Of Related Debt 54,489,503 258 388 9,731,207 Unrestricted (Deficit) 2,792,886 (410,053) 73,920 11,544,841

Total Net Assets $ 57,282,389 $ (409,795) $ 74,308 $ 21,276,048

194 Thurston County, Washington 2009

Combining Statement Of Net Assets Internal Service Funds December 31, 2009 Page 2 of 2

Insurance Risk Benefits Unempl. ASSETS Management Admin Comp. Total

Curre nt Asse ts: Cash & Pooled Investments $ 6,352,704 $ 1,409,131 $ 2,120,219 $ 25,477,334 Receivables: Accrued Interest & Penalties - 4,702 8,369 78,459 Customer Account Receivables 5,266 - 107,458 212,975 Due From Other Funds - - 7,462 360,084 Due From Other Government Units - - - 7,275 Inventory - - - 232,961 Prepayments - - - 130,528 Ca pita l Asse ts: Non-Depreciable - - - 5,488,799 Depreciable, Net - - - 59,097,107 Tota l Asse ts 6,357,970 1,413,833 2,243,508 91,085,522

LIABILITIES

Current Liabilities: Accounts Payable 6,942 9,546 - 660,705 Notes/Leases Payable - - - 4,435 Due To Other Funds - - - 58,032 Due To Other Government Units - - - 77 Compensated Absences 48,758 3,723 18,293 441,645 Lim.Tax G.O.Bond-Current Portion - - - 66,494 Long-Term Liabilities: Limited G.O. Bonds Payable - - - 293,621 Compensated Absences 19,673 1,502 7,381 599,136 Other Post Employment Benefits Payable 19,187 13,284 4,133 875,538 Claims and Judgments Payable 4,414,807 - - 4,414,807 Total Liabilities 4,509,367 28,055 29,807 7,414,490

NET ASSETS

Invested in Capital Assets, Net Of Related Debt - - - 64,221,356 Unrestricted (Deficit) 1,848,603 1,385,778 2,213,701 19,449,676

Total Net Assets $ 1,848,603 $ 1,385,778 $ 2,213,701 $ 83,671,032

195 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenses And Changes In Fund Net Assets Internal Service Funds For The Year Ended December 31, 2009 Page 1 of 2

Equipment Central Enterprise Enterprise Rental & Services Admin Engineering Revolv.

Operating Revenues: Charges for Services $ 97,203 $ 20 $ 7,100 $ 2,398 Equipment Rental - - - 5,660,483 Interfund Contributions 12,403,742 5,792,461 890,824 396 Miscellaneous 14,853 20 - 5,953

Total Operating Revenues 12,515,798 5,792,501 897,924 5,669,230

Operating Expenses: Salaries and Benefits 5,486,458 5,268,983 827,841 1,240,000 Other Supplies and Expenses 531,233 33,217 5,136 1,728,365 Contractual Services 4,293,427 12,537 10,318 89,087 Interfund Services and Charges 741,765 525,952 25,601 466,852 Depreciation/Amortization 2,058,092 6,141 332 2,327,578 Claims Payments 2,905 - - -

Total Operating Expenses 13,113,880 5,846,830 869,228 5,851,882

Operating Income (Loss) (598,082) (54,329) 28,696 (182,652)

Nonoperating Revenue (Expenses): Interest Revenue 34,676 2,075 673 417,458 Other Nonoperating Revenue (Expense) (12,866) - - 200,947 Interest Expense & Fiscal Charges (18,791) (160) - -

Total Nonoperating Revenue (Expense) 3,019 1,915 673 618,405

Income Before Contributions and Transfers: (595,063) (52,414) 29,369 435,753 Capital Contributions 5,614,365 - - - Transfers In (Out) (132,877) - - (2,266,980)

Change in Net Assets 4,886,425 (52,414) 29,369 (1,831,227)

Net Assets as of January 1 52,395,964 (357,381) 44,939 23,107,275

Net Assets as of December 31 $ 57,282,389 $ (409,795) $ 74,308 $ 21,276,048

196 Thurston County, Washington 2009

Combining Statement Of Revenues, Expenses And Changes In Fund Net Assets Internal Service Funds For The Year Ended December 31, 2009 Page 2 of 2

Insurance Risk Benefits Unempl. Management Admin Comp. Total

Operating Revenues: Charges for Services $ - $ - $ - $ 106,721 Equipment Rental - - - 5,660,483 Interfund Contributions 2,480,438 461,342 435,907 22,465,110 Miscellaneous - 504 - 21,330

Total Operating Revenues 2,480,438 461,846 435,907 28,253,644

Operating Expenses: Salaries and Benefits 324,448 141,988 719,858 14,009,576 Other Supplies and Expenses 448 285 - 2,298,684 Contractual Services 200,981 264,116 - 4,870,466 Interfund Services and Charges 92,605 29 - 1,852,804 Depreciation/Amortization - - - 4,392,143 Claims Payments 1,682,771 - - 1,685,676

Total Operating Expenses 2,301,253 406,418 719,858 29,109,349

Operating Income (Loss) 179,185 55,428 (283,951) (855,705)

Nonoperating Revenue (Expenses): Interest Revenue - 39,188 66,419 560,489 Other Nonoperating Revenue (Expense) 78,178 - - 266,259 Interest Expense & Fiscal Charges - - - (18,951)

Total Nonoperating Revenue (Expense) 78,178 39,188 66,419 807,797

Income Before Contributions and Transfers: 257,363 94,616 (217,532) (47,908) Capital Contributions - - - 5,614,365 Transfers In (Out) (94,317) - - (2,494,174)

Change in Net Assets 163,046 94,616 (217,532) 3,072,283

Net Assets as of January 1 1,685,557 1,291,162 2,431,233 80,598,749

Net Assets as of December 31 $ 1,848,603 $ 1,385,778 $ 2,213,701 $ 83,671,032

197 Thurston County, Washington 2009

Combining Statement Of Cash Flows Internal Service Funds For The Year Ended December 31, 2009 Page 1 of 4

Equipment Central Enterprise Enterprise Rental & Services Admin Engineering Revolv. Cash Flows from Operating Activities: Cash Received from Customers $ 12,628,553 $ 5,719,689 $ 886,318 $ 5,821,554 Cash Paid for Goods & Services (5,605,434) (572,614) (41,191) (2,877,469) Cash Paid to Employees (5,319,421) (5,060,312) (818,525) (1,192,586)

Net Cash Provided (Used) by Operating Activities 1,703,698 86,763 26,602 1,751,499

Cash Flows from Noncapital Financing Activities: Transfers In 2,340,339 - - 209,020 Transfers Out (2,473,216) - - (2,476,000) Grant Proceeds 1,457 - - 2,996 Insurance Recoveries - - - 54,934 Tax Payments (7,885) - - -

Net Cash Provided (Used) by Noncapital Financing Activities (139,305) - - (2,209,050)

Cash Flows from Capital & Related Financing Activities: Cash Proceeds from Sale of Capital Assets - - - 246,796 Cash Disbursements for Purchases of Capital Assets (217,785) - - (3,633,674) Bond/Loan Payments (72,991) (6,385) - - Contributed Capital (11,347) - - - Interest Payments (18,791) (159) - -

Net Cash Provided (Used) by Capital & Related Financing Activities (320,914) (6,544) - (3,386,878)

Cash Flows from Investing Activities: Interest Receipts 33,509 1,971 673 492,513

Net Cash Provided (Used) by Investing Activities 33,509 1,971 673 492,513

Net Increase (Decrease) in Cash & Cash Equivalents 1,276,988 82,190 27,275 (3,351,916)

Cash & Cash Equivalents as of January 1 2,461,208 92,701 40,994 14,965,840

Cash & Cash Equivalents as of December 31 $ 3,738,196 $ 174,891 $ 68,269 $ 11,613,924

198 Thurston County, Washington 2009

Combining Statement Of Cash Flows Internal Service Funds For The Year Ended December 31, 2009 Page 2 of 4

Insurance Risk Benefits Unempl. Management Admin Comp. Total Cash Flows from Operating Activities: Cash Received from Customers $ 2,475,172 $ 461,846 $ 639,241 $ 28,632,373 Cash Paid for Goods & Services (1,277,489) (262,031) - (10,636,228) Cash Paid to Employees (307,049) (135,913) (716,524) (13,550,330)

Net Cash Provided (Used) by Operating Activities 890,634 63,902 (77,283) 4,445,815

Cash Flows from Noncapital Financing Activities: Transfers In - - - 2,549,359 Transfers Out (94,317) - - (5,043,533) Grant Proceeds - - - 4,453 Insurance Recoveries 78,178 - - 133,112 Tax Payments - - - (7,885)

Net Cash Provided (Used) by Noncapital Financing Activities (16,139) - - (2,364,494)

Cash Flows from Capital & Related Financing Activities: Cash Proceeds from Sale of Capital Assets - - - 246,796 Cash Disbursements for Purchases of Capital Assets - - - (3,851,459) Bond/Loan Payments - - - (79,376) Contributed Capital - - - (11,347) Interest Payments - - - (18,950)

Net Cash Provided (Used) by Capital & Related Financing Activities - - - (3,714,336)

Cash Flows from Investing Activities: Interest Receipts - 42,248 73,292 644,206

Net Cash Provided (Used) by Investing Activities - 42,248 73,292 644,206

Net Increase (Decrease) in Cash & Cash Equivalents 874,495 106,150 (3,991) (988,809)

Cash & Cash Equivalents as of January 1 5,478,209 1,302,981 2,124,210 26,466,143

Cash & Cash Equivalents as of December 31 $ 6,352,704 $ 1,409,131 $ 2,120,219 $ 25,477,334

199 Thurston County, Washington 2009

Combining Statement Of Cash Flows Internal Service Funds For The Year Ended December 31, 2009 Page 3 of 4

Equipment Central Enterprise Enterprise Rental & Services Admin Engineering Revolv. Reconciliation of Operating Income To Net Cash Provided (Used) by Operating Income: Operating Income $ (598,082) $ (54,329) $ 28,696 $ (182,652) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense 2,058,092 6,141 332 2,327,578 (Increase) Decrease in: Customer Account Receivables - - - (99,066) Due from Other Funds 112,755 (72,812) (11,606) 258,665 Due from Other Government Units - - - (7,275) Inventories - - - (17,647) Prepaid Expense 490 - - (45,861) Increase (Decrease) in: Accounts Payable 65,776 (908) (136) (325,805) Due to Other Funds (102,370) (762) 9,316 (203,929) Due to Other Government Units - - - 77 Claims and Judgments - - - - Compensated Absences Payable 167,037 209,433 - 47,414

Total Adjustments 2,301,780 141,092 (2,094) 1,934,151

Net Cash Provided (Used) by Operating Activities $ 1,703,698 $ 86,763 $ 26,602 $ 1,751,499

Noncash Investing, Capital, and Financing Activities: Gain on Purchase/Sale of Capital Assets $ - $ - $ - $ 246,796 Loss on Purchase/Sale of Capital Assets $ (6,438) $ - $ - $ (103,779) Contribution of Capital Assets $ 5,625,712 $ - $ - $ -

200 Thurston County, Washington 2009

Combining Statement Of Cash Flows Internal Service Funds For The Year Ended December 31, 2009 Page 4 of 4

Insurance Risk Benefits Unempl. Management Admin Comp. Total Reconciliation of Operating Income To Net Cash Provided (Used) by Operating Income: Operating Income $ 179,185 $ 55,428 $ (283,951) $ (855,705) Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities: Depreciation Expense - - - 4,392,143 (Increase) Decrease in: Customer Account Receivables (5,266) - 210,796 106,464 Due from Other Funds - - (7,462) 279,540 Due from Other Government Units - - - (7,275) Inventories - - - (17,647) Prepaid Expense - - - (45,371) Increase (Decrease) in: Accounts Payable (14,112) 2,399 - (272,786) Due to Other Funds (510) (517) - (298,772) Due to Other Government Units - - - 77 Claims and Judgments 713,938 - - 713,938 Compensated Absences Payable 17,399 6,592 3,334 451,209

Total Adjustments 711,449 8,474 206,668 5,301,520

Net Cash Provided (Used) by Operating Activities $ 890,634 $ 63,902 $ (77,283) $ 4,445,815

Noncash Investing, Capital, and Financing Activities: Gain on Purchase/Sale of Capital Assets $ - $ - $ - $ 246,796 Loss on Purchase/Sale of Capital Assets $ - $ - $ - $ (110,217) Contribution of Capital Assets $ - $ - $ - $ 5,625,712

201 Thurston County, Washington 2009

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202 Thurston County, Washington 2009

FIDUCIARY FUNDS

Fiduciary funds are used to account for monies held by Thurston County as an agent or trustee. Amounts held for other governmental units are invested in Thurston County’s Investment Pool. Amounts are also held for private parties within the Clerk’s expendable trust fund. These amounts were reported in the Statement of Fiduciary Net Assets and Statement Changes in Fiduciary Net Assets.

The County also manages five other agency funds, as noted below, with deposits held in suspense prior to transfer and distribution to other governmental units, private parties or the County.

Payroll and Claims Clearing – A fund used to process payroll and claims expenditures for County funds prior to disbursement to other private parties and governmental units.

Taxes & Refunds Pending – A fund used to hold primarily tax refunds prior to distribution to the appropriate party.

Treasurer’s Fiscal Agent – Funds used to account for deposits with the County’s fiscal agent for agency debt service payments.

Treasurer’s Trust – A fund used to hold primarily advance and partial payments on taxes in suspense prior to distribution to the appropriate account.

203 Thurston County, Washington 2009

Combining Statement of Fiduciary Net Assets Agency Funds December 31, 2009

Payroll & Taxes and Treasurer's Claims Refunds Fisca l Treasurer's ASSETS Clearing Pending Agent Trust Total

Asse ts: Cash & Pooled Investments $ 15,550,297 $ 629 $ - $ - $ 15,550,926 Cash and Investments in Trust - - - 60,432 60,432 Cash and Deposits with Fiscal Agent - - 50,000 - 50,000

Total Assets 15,550,297 629 50,000 60,432 15,661,358

LIABILITIES

Liabilities: Warrant Payable 12,945,555 - - - 12,945,555 Accounts Payable 107,458 629 - - 108,087 Payroll Payable 2,497,284 - - - 2,497,284 Due to Other Governments - - 50,000 60,432 110,432

Total Liabilities $ 15,550,297 $ 629 $ 50,000 $ 60,432 $ 15,661,358

204 Thurston County, Washington 2009

Combining Statement of Changes in Assets and Liabilities Agency Funds For The Year Ended December 31, 2009

Balance January 1- Balance Restated Additions Deductions December 31

PAYROLL & CLAIMS CLEARING

Cash, Cash Equivalents & Pooled Investments $ 18,998,709 $ - $ 3,448,412 $ 15,550,297 Total Assets $ 18,998,709 $ - $ 3,448,412 $ 15,550,297

Warrants Payable $ 15,933,862 $ - $ 2,988,307 $ 12,945,555 Accounts Payable 573,488 - 466,030 107,458 Payroll Payable 2,491,359 5,925 - 2,497,284 Total Liabilities $ 18,998,709 $ 5,925 $ 3,454,337 $ 15,550,297

TAXES & REFUNDS PENDING

Cash, Cash Equivalents & Pooled Investments $ 8,830 $ - $ 8,201 $ 629 Total Assets $ 8,830 $ - $ 8,201 $ 629

Accounts Payable $ 8,830 $ 8,201 $ 629 Total Liabilities $ 8,830 $ - $ 8,201 $ 629

TREASURER'S FISCAL AGENT

Cash, Cash Equivalents & Pooled Investments $ 75,000 $ - $ 25,000 $ 50,000 Total Assets $ 75,000 $ - $ 25,000 $ 50,000

Due to Other Government Units $ 75,000 $ - $ 25,000 $ 50,000 Total Liabilities $ 75,000 $ - $ 25,000 $ 50,000

TREASURER'S TRUST

Cash, Cash Equivalents & Pooled Investments $ 360,798 $ - $ 300,366 $ 60,432 Total Assets $ 360,798 $ - $ 300,366 $ 60,432

Due to Other Government Units $ 360,798 $ - $ 300,366 $ 60,432 Total Liabilities $ 360,798 $ - $ 300,366 $ 60,432

TOTAL AGENCY FUNDS

Cash, Cash Equivalents & Pooled Investments $ 19,443,337 $ - $ 3,781,979 $ 15,661,358 Total Assets $ 19,443,337 $ - $ 3,781,979 $ 15,661,358

Warrants Payable $ 15,933,862 $ - $ 2,988,307 $ 12,945,555 Accounts Payable 582,318 - 474,231 108,087 Payroll Payable 2,491,359 5,925 - 2,497,284 Due to Other Government Units 435,798 - 325,366 110,432 Total Liabilities $ 19,443,337 $ 5,925 $ 3,787,904 $ 15,661,358

205 Thurston County, Washington 2009

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206 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 1 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Agriculture/ Office of School Breakfast Program 10.553 $ 19,105 Superintendent of Public Instruction

Department of Agriculture/ Office of National School Lunch 10.555 $ 28,802 Superintendent of Public Instruction Program $ 7,386 3, 4 Total CFDA Number $ 36,187

Department of Agriculture/ WA Supplemental Nutrition for 10.557 $ 199,369 Department of Health Women, Infants, and Children

Total for Department of Agriculture $ 254,661

Department of Commerce/ WA State Public Safety Interoperable 11.555 $ 1,527,615 Military Dept Communications Grant

Total for Department of Commerce $ 1,527,615

Department of Defense/WA State Military Forest Yield 12.999 $ 112,403 4, 6 Treasurer

Total Department of Defense $ 112,403

Department of Housing and Urban Community Development Block 14.228 Development/ WA Department of Grants Commerce Public Service $ 116,628 Rehabilitation $ 290,128 Flood Elevation $ 432,407 Rochester Community Center $ 568,466

Total CFDA Number $ 1,407,628

Department of Housing and Urban Home Investment Partnership 14.239 Development Program FY2005 $ 83,284 FY2006 $ 45,993 FY2007 $ 123,621 FY2008 $ 216,515 FY2009 $ 4,960

Total CFDA Number $ 474,372

Total Department of Housing and Urban Development $ 1,882,001

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

207 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 2 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Interior Fish & Wildlife Management 15.608 $ 13,548 Assistance

Total Department of Interior $ 13,548

Office of National Drug Control High Intensity Drug Trafficking 16.000 $ 31,923 6 Policy/WA Traffic Safety Area Commission Office of National Drug Control Domestic Cannabis Eradication $ 7,013 Policy/WA State Patrol and Suppression

Total CFDA Number $ 38,936

Total Office of National Drug Control Policy $ 38,936

Department of Justice/WA Juvenile Accountability Block 16.523 $ 15,611 Department of Social and Health Grant Services Department of Justice/WA State Crime Victim Assistance 16.575 $ 135,449 Department of Commerce $ 67,621

Total CFDA Number $ 203,070

Department of Justice/WA State Violence Against Women 16.588 $ 7,056 Department of Commerce Formula Grant $ 10,232 $ 4,616 $ 1,149 ARRA-Violence Against $ 34,571 Women Formula Grant Department of Justice/WA Office of ARRA-Violence Against $ 9,481 Administrator of the Courts Women Formula Grant

Total CFDA Number $ 67,105

Department of Justice/WA State Residential Substance Abuse 16.593 $ 29,796 2 Department of Commerce Treatment $ 26,755

Total CFDA Number $ 56,551

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

208 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 3 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Justice State Criminal Alien 16.606 $ 143,272 Assistance Program Department of Justice Bulletproof Vest Program 16.607 $ 3,339 4 Department of Justice/WA Public Safety Partnership-State 16.710 $ 16,568 Association of Sheriffs & Police Methamphetamine Initiative Chiefs Grant $ 24,340

Total CFDA Number $ 40,908

Department of Justice/WA State Edward Byrne Memorial 16.738 $ 24,102 2 Department of Commerce Justice Assistance Grant Program Department of Justice $ 6,789

Total CFDA Number $ 30,891

Department of Justice/WA State Paul Coverdell Forensic 16.742 $ 1,418 Department of Commerce Sciences Improvement Grant Program Department of Justice/WA State ARRA-Edward Byrne Memorial 16.803 $ 102,729 Department of Commerce Justice Assistance Grant $ 72,215 Program Department of Justice/ Department of $ 102,696 Social and Health Services Department of Justice $ 68,115

Total CFDA Number $ 345,756

Total Department of Justice $ 907,922

Department of Labor/WA State WIA Adult Program 17.258 $ 744,421 Employment Security Division $ 508,360

WIA Adult Program Shared $ 223,460 Costs ARRA-WIA Adult Program $ 344,737 ARRA WIA Adult Program $ 25,693 Shared Costs

Total CFDA Number $ 1,846,672

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

209 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 4 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Labor/WA State WIA Youth Programs 17.259 $ 827,157 Employment Security Division $ 444,158 WIA Youth Programs Shared $ 234,420 Costs ARRA-WIA Youth Programs $ 1,276,095 ARRA-WIA Youth Programs $ 59,951 Shared Costs

Total CFDA Number $ 2,841,781

Department of Labor/WA State WIA Dislocated Worker 17.260 $ 779,370 Employment Security Division Programs $ 691,551

WIA Dislocated Worker Shared $ 199,163 Costs Department of Labor/WA State ARRA-Dislocated Worker 17.260 $ 585,760 Employment Security Division Programs ARRA Dislocated Worker $ 57,096 Shared Costs 2007 Storm National $ 618,121 Emergency Grant Rapid Response Additional $ 250,743 Assistance

Total CFDA Number $ 3,181,805

Department of Labor WIA Pilot Forestry Earmark 17.261 $ 20,841

Department of Labor/WA State Job Training Grant-Workforce 17.268 $ 2,234,932 Employment Security Division Innovation in Regional Economic Development

Total Department of Labor $ 10,126,031

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

210 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 5 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Transportation/WA Highway Planning & 20.205 $ 85,469 State Department of Transportation Construction ARRA-Steilacoom Rd Pedestrian Enhancements 93rd Ave SW/Littlerock Rd $ 4,266 61319 Vail Rd 153rd to Bald Hills $ 66,089 61365 Old 99-McCorkle to Rich Road $ 1,475 61425 Meridian Rd/ Mullen Rd $ 17,055 Intersection (61426) Bridge the Gap Phase II 61434 $ 1,316,220

Total CFDA Number $ 1,490,574

Department of Transportation/WA State & Community Highway 20.600 $ 153,755 2, 4 Traffic Safety Commission Safety

Total Department of Transportation $ 1,644,329

Environmental Protection Agency Indoor Air Quality Surveys, 66.034 $ 2,856 Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act

Environmental Protection Agency Targeted Watersheds Grant- 66.439 $ 197,754 Thurston County Environmental Protection Drinking Water State Revolving 66.468 $ 23,750 Agency/WA Department of Health Funds Group A Environmental Protection Water Rec/Beach Monitoring 66.472 $ 3,483 Agency/WA Department of Health

Total Environmental Protection Agency $ 227,843

Department of Energy ARRA-Energy Efficiency & 81.128 $ 13,923 Conservation Block Grant Program

Total Department of Energy $ 13,923

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

211 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 6 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Education/ North Safe & Drug-Free Schools 84.184 $ 63,600 4 Thurston Public Schools Department of Education/ Office of Twenty-First Century Schools 84.287 $ 60,162 Superintendent of Public Instruction Department of Education/ WA Dept ARRA-Rehabilitation Services- 84.390 $ 52,102 of Social and Health Services Project Hire

Total Department of Education $ 175,863

Election Assistance Help America Vote Act 90.401 $ 6,648 Commission/Secretary of State Requirements

Total Election Assistance Commission $ 6,648

Department of Health & Human Public Health Emergency 93.069 $ 120,968 Services/WA Department of Health Preparedness Department of Health & Human Advancing System 93.088 $ 295,512 Services/WA Department of Health Improvement to Support Targets for Healthy People

Department of Health & Human Projects for Assistance in 93.150 $ 47,190 Services/WA Department of Social Transition from Homelessness and Health Services Department of Health & Human Family Planning Services Title 93.217 $ 28,939 Services/WA Department of Social X and Health Services Family Planning Services Title $ 89,213 X - HIV Exp.

Total CFDA Number $ 118,152

Department of Health & Human Immunization Grant Vaccine in 93.268 $ 4,265 3 Services/WA Department of Health Lieu of Cash Immunizations $ 58,341

Total CFDA Number $ 62,606

Department of Health & Human Centers for Disease Control & 93.283 $ 25,200 Services/WA Department of Health Prevention $ 397,755 Department of Health & Human Centers for Disease Control & $ 16,806 Services/NACCHO Prevention Climate Change

Total CFDA Number $ 439,761

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

212 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 7 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Health & Human Temporary Assistance for 93.558 $ 131,774 Services/ WA State Department of Needy Families-CTED Works $ 126,442 Commerce Temporary Assistance for $ 420,580 Needy Families-Community $ 425,064 Jobs Temporary Assistance for $ 16,247 Needy Families-Community Jobs-Extended Hours

Total CFDA Number $ 1,120,108

Department of Health & Human Child Support Enforcement 93.563 $ 569,911 5 Services/WA Department of Social $ 120,013 and Health Services $ 307,704

Total CFDA Number $ 997,628

Department of Health & Human Child Care and Development 93.575 $ 13,782 Services/WA Department of Social Block Grant-Infant Toddler and Health Services Department of Health & Human Child Abuse Prevention-Nurse 93.590 $ 132,540 Services/WA Council Prevention of Family Partnership Child Abuse Department of Health & Human Voting Access for Individuals 93.617 $ 2,297 Services/Secretary of State with Disabilities $ 6,997

Total CFDA Number $ 9,294

Department of Health & Human Medical Assistance Program- 93.778 $ 300,000 Services/WA Department of Social Medicaid Match and Health Services Department of Health & Human Bioterrorism Hospital 93.889 $ 36,404 Services/WA Department of Health Preparedness Program Department of Health & Human HIV Prevention 93.940 $ 21,139 Services/Clark County Department of Health & Human Block Grant for Community 93.958 $ 234,783 Services/WA Department of Social Mental Health Services and Health Services

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

213 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 8 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Health & Human Block Grant for Prevention and 93.959 $ 896,211 Services/Department of Social and Treatment of Substance Abuse Health Services Department of Health & Human Maternal and Child Health 93.994 $ 172,435 Services/WA Department of Health Services Block Grant

Total Department of Health & Human Services $ 5,018,513

Department of Homeland Interoperable Emergency 97.001 $ 74,482 Security/WA State Military Dept. Communications Grant $ 3,240

Total CFDA Number $ 77,722

Department of Homeland Boating Safety -Financial 97.012 $ 20,560 Security/WA State Parks & Assistance Recreation Commission Boating Safety -Special $ 4,161 Emphasis

Total CFDA Number $ 24,721

Department of Homeland Disaster Grant Public 97.036 $ 33,106 Security/WA State Military Dept. Assistance -2009 Flood Disaster Grant Public $ 5,318 Assistance -2009 Snow December 2007 Flood $ 247,375 Assistance

Total CFDA Number $ 285,798

Department of Homeland Emergency Management 97.042 $ 110,264 Security/WA State Military Dept. Performance Grant Department of Homeland Pre-Disaster Mitigation 97.047 $ 1,031,244 Security/WA State Military Dept. Independence Rd. 61375 Department of Homeland FFY08 Citizens Corps Program 97.053 $ 18,927 Security/WA State Military Dept.

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

214 Thurston County, Washington 2009

Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2009 Page 9 of 9

Foot- Federal Agency Name/ Pass- CFDA Current Year Note Through Agency Name Federal Program Name Number Expenditures Ref.

Department of Homeland FFY07 State Homeland 97.067 $ 278,238 Security/WA State Military Dept. Security Program FFY08-State Homeland $ 267,825 Security Program FFY08 Homeland Security $ 4,299 Grant-Citizens Corps Program Department of Homeland FFY08 Homeland Security $ 250,266 Security/Seattle Police Department Grant-Regional Catastrophic Planning Program

Total CFDA Number $ 800,629

Department of Homeland Law Enforcement Terrorism 97.074 $ 223,364 Security/WA State Patrol Prevention Program

Total Department of Homeland Security $ 2,572,669

Total Federal Awards Expended $ 24,522,906

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

215 Thurston County, Washington 2009

Schedule of Expenditures of State Awards For the Year Ended December 31, 2009 Page 1 of 4

Current Year Footnote Grantor/Program Title Expenditures Ref.

Administrative Office of the Courts Family & Juvenile Court Improvement Plan $ 36,724 Becca Bill 412,517 Court Appointed Special Advocate Program 110,438 Dependency 101 Program 17,493 4 Total Administration Office for the Courts $ 577,171

Association of Sheriffs & Police Chiefs Registered Sex Offender Address & Residency Program $ 165,865 4 Total Association of Sheriffs & Police Chiefs $ 165,865

Auto Theft Prevention Authority Thurston County Motor Vehicle Theft Reduction $ 27,133 License Plate Reader Project 45,751 Total Auto Theft Prevention Authority $ 72,883

County Road Administration Board Skookumchuck Road $ 1,584,121 Rich Road Curve 54,996 Wilkensen Road 18,084 Delphi Road MP 8.61 to SR 101 68,974 Delphi Road 32nd - 62nd 29,054 County Arterial Preservation Program 408,501 4 Total County Road Administration Board $ 2,163,730

Department of Commerce Victim & Witness Assistance $ 16,712 Victim & Witness Assistance 35,468 Re-Employment Support 19,142 Re-Employment Support 28,853 Drug Interdiction Program 14,954 4 Homeless Grant Assistance Program-ECHO 286,783 Total Department of Commerce $ 401,912

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

216 Thurston County, Washington 2009

Schedule of Expenditures of State Awards For the Year Ended December 31, 2009 Page 2 of 4

Current Year Footnote Grantor/Program Title Expenditures Ref.

Department of Ecology Deschutes River/Budd Inlet TMDL $ 8,910 FCAAP Yelm/Thompson Creek Data Compilation 5,007 Woodland Creek Pollutant Reduction Project 101,397 Black Lake Eurasian Water milfoil Control 1,361 Chehalis River Egeria densa Control 35,848 Nisqually Watershed Phase 4 23,334 4 Flood Control Assistance Account Program 25,208 Comprehensive Shoreline Master Program 349,963 Local Toxics Control 106,823 Local Toxics Control 117,597 Waste Reduction Recycling 24,922 Waste Reduction Recycling 13,995 Septic Assistance Loans 66,132 4 Coordinated Prev Grant-HW 124,162 Coordinated Prev Grant-Off Cycle 179,153 Coordinated Prev Grant-SW 52,148 Site Hazard Assessment 119,864 Well Delegation 15,200 On-Site Assistance 49,517 Total Department of Ecology $ 1,420,548

Department of Health Emergency Medical Services $ 6,000 Emergency Medical Services 6,000 Vaccine in Lieu of Cash 1,828 On-Site Management Plan 44,819 Marine Recovery Area 46,382 Family Planning 65,200 Fish Advisory 5,667 Local Capacity Fund 279,706 Oral Health 17,555 Child Death Review 750 Blue Ribbon (5930) 333,405 Recreational-Shellfish 1,408 Safe Drinking Water (Group B) 6,875 Youth Tobacco 12,305 Total Department of Health $ 827,898

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

217 Thurston County, Washington 2009

Schedule of Expenditures of State Awards For the Year Ended December 31, 2009 Page 3 of 4

Current Year Footnote Grantor/Program Title Expenditures Ref.

Department of Social and Health Services Access and Visitation Grant $ 11,716 IVD Child Support Enforcement-State 59,093 Child Support Enforcement 280,575 Community Juvenile Accountability Act 117,249 Community Juv. Accnt. Act-Evidence Based Expansion 238,861 Consolidated Juvenile Services-At Risk 243,469 Consolidated Juvenile Services-Diagnostic Bed Days 15,458 Consolidated Juvenile Services-Special Dispos. Altern. 147,465 Chemical Dependency Disposition Alternatives 68,635 HB3900 111,434 Developmental Disabilities-Mason 269,642 4 Developmental Disabilities-Thurston 1,512,328 4 Chemical Dependency - State Grant in Aid 1,578,042 Chemical Dependency - Drug Court 46,085 Chemical Dependency - CJTA 239,108 Chemical Dependency - TANF 7,127 Chemical Dependency - OFM 36,794 DDD Crisis Stabilization 10,695 Cover All Kids 31,447 DCFS 32,810 Family Policy Council-Network 60,629 Evidence Based Prevention 395,485 RSN Non-Medicaid Consolidated-Integrated 5,884,180 RSN-Expanded Community Services 75,012 RSN-Jail Proviso 172,615 PACT 592,552 PALS 410,507 Total Department of Social and Health Services $ 12,649,014

Department of Employment Security Offender Services $ 31,323 Total Department of Employment Security $ 31,323

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

218 Thurston County, Washington 2009

Schedule of Expenditures of State Awards For the Year Ended December 31, 2009 Page 4 of 4

Current Year Footnote Grantor/Program Title Expenditures Ref.

Military Department December 2007 Flood Assistance $ 378 Public Assistance-Flood 14,177 Public Assistance-Snow 10,509 Total Military Department $ 25,065

Office of the Secretary of State State Archives $ 59 Total Office of the Secretary of State $ 59

Recreation and Conservation Office Chehalis Western Trail Phase 2 $ 25,639 4 Total Recreation and Conservation Office $ 25,639

State Conservation Commission Farmland/Working Lands Conservation Plan $ 8,795 4 Total State Conservation Commission $ 8,795

State Legislature 50% Prosecuting Attorney's salary $ 74,416 4 Total State Legislature $ 74,416

State Parks and Recreation Commission Safer Boating Grant $ 11,089 4 Total State Parks and Recreation Commission $ 11,089

Transportation Improvement Board Martin Way Sidewalk $ 87,886 Total Transportation Improvement Board $ 87,886

Traffic Safety Commission 2009 School Zone Flashing Beacon Lighting Project $ 36,322 School Zone Grant 4,525 4 Driver's License Restoration Program 21,383 4 Total Traffic Safety Commission $ 62,229

TOTAL STATE AND LOCAL ASSISTANCE $ 18,605,522

The Accompanying Notes to The Schedule of Expenditures of Federal Awards are an Integral Part of This Schedule

219 Thurston County, Washington 2009

MCAG NO. 0170 Schedule 16

THURSTON COUNTY Notes to the Schedule of Expenditures of Federal, State, and Local Awards For the Year Ended December 31, 2009

NOTE 1 – BASIS OF ACCOUNTING The Schedule of Financial Assistance is prepared on the same basis of accounting as Thurston County’s financial statements. Thurston County uses the accrual basis of accounting for all funds except the government types and agency funds, which use the modified accrual basis of accounting.

NOTE 2 – PROGRAM COSTS The amounts shown as current year expenditures represent only the federal and state portion of the costs. Actual program costs, including Thurston County’s portion, may be more than shown.

NOTE 3 – NONCASH AWARDS The amount of vaccines reported on this schedule is the value of vaccines distributed by the County during the current year and priced as prescribed by the Washington State Department of Health.

The amount of food commodities reported on this schedule is the value of the commodities distributed by the County during the current year and priced as prescribed by the Office of the Superintendent of Public Instruction.

NOTE 4 – NOT AVAILABLE (N/A) The County was unable to obtain other identification numbers.

NOTE 5 – INDIRECT COST RATE Expenditures include indirect cost recovery. The County used the indirect cost rate allowed per grant agreement.

NOTE 6 – CFDA NUMBER Per contractual agreement with Northwest HIDTA Drug Court Development Initiative, ONDCP does not use CFDA numbers.

In addition, the Department of Defense does not use a CFDA number for Military Forest Yield payments.

220 Thurston County, Washington 2009

Statistical Section

The Thurston County Comprehensive Annual Financial Report includes statistical information to show the government’s overall financial health.

Financial Trends Schedules 1-4 explain the County’s financial management and health.

Revenue Capacity Schedules 5-8 illustrate the County’s largest revenue source, property tax.

Debt Capacity Schedules 9-12 contain information on the County’s current level of outstanding debt and ability to issue debt in the future. Thurston County does not issue pledged revenue debt.

Demographic and Economic Information Schedules 13-14 show the economic and demographic environment of Thurston County.

Operating Information Schedules 15-17 incorporates services the County provides and capital asset and infrastructure information.

Sources: Previous comprehensive and annual financial reports, budget workload indicators, and as noted on schedules.

Entity wide information is presented for all years that entity wide information is available, which starts in 2002.

221 Thurston County, Washington 2009

Net Assets By Category Last Eight Years Schedule 1 Page 1 of 2

2002 2003 2004 2005 Governmental Activities:

Investment in Capital Assets, Net of Related Debt $ 341,688,727 $ 339,570,786 $ 352,042,233 $ 351,892,755 Restricted Net Assets 64,048,027 70,692,383 87,351,122 93,610,956 Unrestricted 17,726,003 22,728,573 14,412,788 19,681,853 Total governmental activities net assets 423,462,757 432,991,742 453,806,143 465,185,564

Business-type activities

Investment in Capital Assets, Net of Related Debt 11,319,538 13,409,717 12,408,331 19,788,003 Restricted (1,447,653) 18,694,153 4,936,086 4,860,017 Unrestricted 19,999,900 976,861 16,043,675 10,064,147 Total business-type activities net assets 29,871,785 33,080,731 33,388,092 34,712,167

Primary government

Investment in Capital Assets, Net of Related Debt 353,008,265 352,980,503 364,450,564 371,680,758 Restricted 62,600,374 89,386,536 92,287,208 98,470,973 Unrestricted 37,725,903 23,705,434 30,456,463 29,746,000 Total primary government net assets $ 453,334,542 $ 466,072,473 $ 487,194,235 $ 499,897,731

222 Thurston County, Washington 2009

Net Assets By Category Last Eight Years Schedule 1 Page 2 of 2

2006 2007 2008 2009 Governmental Activities:

Investment in Capital Assets, Net of Related Debt $ 351,868,678 $ 355,096,136 $ 357,549,686 $ 367,485,013 Restricted Net Assets 111,379,265 107,897,449 98,672,400 106,941,800 Unrestricted 18,563,416 28,549,434 31,307,181 15,356,252 Total governmental activities net assets 481,811,359 491,543,019 487,529,267 489,783,065

Business-type activities

Investment in Capital Assets, Net of Related Debt 20,358,678 21,723,075 26,105,070 26,673,569 Restricted 5,643,212 5,361,448 5,403,545 9,423,124 Unrestricted 9,004,514 6,853,203 5,809,946 3,726,040 Total business-type activities net assets 35,006,404 33,937,726 37,318,561 39,822,733

Primary government

Investment in Capital Assets, Net of Related Debt 372,227,356 376,819,211 383,654,756 394,158,582 Restricted 117,022,477 113,258,897 104,075,945 116,364,924 Unrestricted 27,567,930 35,402,637 37,117,127 19,082,292 Total primary government net assets $ 516,817,763 $ 525,480,745 $ 524,847,828 $ 529,605,798

223 Thurston County, Washington 2009

Changes in Net Assets Last Eight Years Schedule 2 Page 1 of 4

2002 2003 2004 2005 Governmental Activities: Expenses (Net of Indirect Expenses): General Government $ 8,872,772 $ 7,729,613 $ 9,012,729 $ 9,110,756 Culture & Recreation 2,444,790 2,012,956 2,415,435 2,764,226 Economic Environment 13,161,330 14,107,884 14,645,370 12,209,087 Health & Human Services 26,205,973 30,867,847 32,846,130 38,095,014 Public Safety 50,057,524 45,304,472 49,584,500 51,031,012 Transportation 23,163,128 25,125,598 20,166,417 21,187,304 Utilities & Environment 1,388,082 1,382,660 1,550,457 1,328,754 Interest and Fiscal Charges 1,607,743 1,561,608 1,546,419 1,895,531 Total Expenses 126,901,342 128,092,638 131,767,457 137,621,684 Program Revenues: Charges for Services: General Government 2,286,978 2,955,977 2,865,239 2,672,466 Culture & Recreation 773,151 684,795 1,845,362 771,723 Economic Environment 5,585,660 6,395,917 6,667,587 6,409,085 Health & Human Services 1,100,244 1,165,833 1,109,076 799,739 Public Safety 4,972,102 5,240,296 5,266,824 6,935,860 Transportation 571,529 828,163 502,452 558,677 Utilities & Environment 627,697 481,929 462,880 493,028 Operating Grants & Contributions 34,167,007 35,957,385 36,780,251 35,888,390 Capital Grants 2,614,344 2,836,121 3,828,515 4,327,526 Total Program Revenues 52,698,712 56,546,416 59,328,186 58,856,494 Total Net Expense (74,202,630) (71,546,222) (72,439,271) (78,765,190) General Revenues & Other Items: Taxes 77,286,257 81,141,816 82,263,513 88,684,559 Other General Revenues 4,177,370 2,923,716 2,874,783 4,392,286 Special Items, Transfers & Adjustments 726,710 (2,990,325) 8,115,376 (2,932,234) Total General Revenues & Other Items 82,190,337 81,075,207 93,253,672 90,144,611 Change in Net Assets 7,987,707 9,528,985 20,814,401 11,379,421

224 Thurston County, Washington 2009

Changes in Net Assets Last Eight Years Schedule 2 Page 2 of 4

2006 2007 2008 2009 Governmental Activities: Expenses (Net of Indirect Expenses): General Government $ 9,906,700 $ 9,729,554 $ 10,679,357 $ 8,569,812 Culture & Recreation 3,032,683 5,848,770 3,644,750 3,780,250 Economic Environment 14,204,195 10,968,763 13,173,730 15,850,367 Health & Human Services 43,346,401 45,933,859 48,541,104 47,548,566 Public Safety 55,514,228 64,826,213 70,421,095 70,615,888 Transportation 22,354,754 25,223,760 27,925,015 28,651,349 Utilities & Environment 1,593,881 1,636,119 1,846,225 1,316,016 Interest and Fiscal Charges 1,826,956 1,911,474 2,095,802 3,459,983 Total Expenses 151,779,798 166,078,512 178,327,078 179,792,231 Program Revenues: Charges for Services: General Government 2,714,911 2,465,701 4,917,000 5,552,908 Culture & Recreation 983,184 1,119,202 1,159,995 755,406 Economic Environment 6,507,519 2,443,618 1,062,430 4,463,060 Health & Human Services 2,156,834 2,503,671 3,868,018 3,154,554 Public Safety 6,750,616 8,262,962 7,663,494 9,250,719 Transportation 1,050,167 1,685,740 1,486,524 958,263 Utilities & Environment 584,671 763,846 1,916 580,455 Operating Grants & Contributions 39,764,951 43,981,345 48,779,433 45,501,657 Capital Grants 5,815,999 5,967,081 6,667,935 9,318,083 Total Program Revenues 66,328,852 69,193,166 75,606,745 79,535,105 Total Net Expense (85,450,946) (96,885,346) (102,720,333) (100,257,126) General Revenues & Other Items: Taxes 91,775,978 101,151,580 97,420,544 98,470,757 Other General Revenues 7,497,710 7,418,406 8,244,161 6,839,605 Special Items, Transfers & Adjustments 2,803,053 (1,952,980) (6,958,124) (2,799,438) Total General Revenues & Other Items 102,076,741 106,617,006 98,706,581 102,510,924 Change in Net Assets 16,625,795 9,731,660 (4,013,752) 2,253,798

225 Thurston County, Washington 2009

Changes in Net Assets Last Eight Years Schedule 2 Page 3 of 4

2002 2003 2004 2005 Proprietary Activities: Expenses (Net of Indirect Expenses): Solid Waste 13,307,547 13,368,506 13,343,861 13,822,220 Development Services - - - - Other Utilities 3,172,897 3,197,537 3,285,324 3,257,744 Total Expenses 16,480,444 16,566,043 16,629,185 17,079,964 Program Revenues: Charges for Services: Solid Waste 12,183,445 13,033,858 13,317,893 14,959,601 Development Services - - - - Other Utilities 1,907,371 1,820,313 525,884 652,668 Operating Grants & Contributions 323,438 114,927 186,400 272,826 Capital Grants 199,428 1,606,132 7,606 326,469 Total Program Revenues 14,613,682 16,575,230 14,037,783 16,211,564 Total Net Expense (1,866,762) 9,187 (2,591,402) (868,400) General Revenues & Other Items: Other General Revenues 1,764,591 1,395,773 2,615,422 2,379,852 Special Items, Transfers & Adjustments (1,779,801) 1,803,986 283,341 (187,377) Total General Revenues & Other Items (15,210) 3,199,759 2,898,763 2,192,475 Change in Net Assets (1,881,972) 3,208,946 307,361 1,324,075

Total Change In Net Assets $ 6,105,735 $ 12,737,931 $ 21,121,762 $ 12,703,496

226 Thurston County, Washington 2009

Changes in Net Assets Last Eight Years Schedule 2 Page 4 of 4

2006 2007 2008 2009 Proprietary Activities: Expenses (Net of Indirect Expenses): Solid Waste 16,150,450 18,115,101 17,273,843 15,991,345 Development Services - 6,940,241 6,406,427 4,476,037 Other Utilities 3,687,063 3,629,468 5,238,949 5,060,198 Total Expenses 19,837,513 28,684,810 28,919,219 25,527,580 Program Revenues: Charges for Services: Solid Waste 16,153,474 16,890,041 16,058,808 15,558,195 Development Services - 3,611,885 3,094,794 3,326,600 Other Utilities 1,986,244 2,148,531 4,184,599 4,118,153 Operating Grants & Contributions 284,458 284,147 876,042 1,063,007 Capital Grants 977,843 217,312 1,994,457 114,696 Total Program Revenues 19,402,019 23,151,916 26,208,700 24,180,651 Total Net Expense (435,494) (5,532,894) (2,710,519) (1,346,929) General Revenues & Other Items: Other General Revenues 942,755 1,774,783 1,783,244 1,051,663 Special Items, Transfers & Adjustments (213,024) 2,689,433 4,308,110 2,799,438 Total General Revenues & Other Items 729,731 4,464,216 6,091,354 3,851,101 Change in Net Assets 294,237 (1,068,678) 3,380,835 2,504,172

Total Change In Net Assets $ 16,920,032 $ 8,662,982 $ (632,917) $ 4,757,970

227 Thurston County, Washington 2009

Fund Balances, Governmental Funds Last Eight Years Schedule 3 Page 1 of 2

2002 2003 2004 2005

General fund Reserved $ - $ 365,000 $ - $ - Unreserved, designated 23,920 23,400 23,350 23,350 Unreserved 6,710,544 9,254,021 8,031,322 9,012,394 Total general fund 6,734,464 9,642,421 8,054,672 9,035,744

All other governmental funds Reserved 3,823,680 38,464 36,048 36,995 Unreserved, designated Special revenue funds 520,388 402,328 395,815 577,022 Unreserved, reported in: Special revenue funds 48,977,457 55,361,323 67,279,602 76,097,224 Debt service funds 70,623 38,464 - - Capital projects funds 8,260,217 12,171,565 12,153,420 8,012,217 Total all other governmental funds 61,652,365 68,012,144 79,864,885 84,723,458

Total governmental fund balances $ 68,386,829 $ 77,654,565 $ 87,919,557 $ 93,759,202

228 Thurston County, Washington 2009

Fund Balances, Governmental Funds Last Eight Years Schedule 3 Page 2 of 2

2006 2007 2008 2009

General fund Reserved $ - $ - $ - $ - Unreserved, designated 25,000 25,000 26,000 14,700 Unreserved 8,401,916 6,480,852 7,754,436 8,550,402 Total general fund 8,426,916 6,505,852 7,780,436 8,565,102

All other governmental funds Reserved 38,676 115,236 828,133 7,100,257 Unreserved, designated Special revenue funds 790,929 803,267 523,668 23,225 Unreserved, reported in: Special revenue funds 82,713,223 94,011,999 90,337,230 89,480,522 Debt service funds - - - - Capital projects funds 9,501,584 7,864,156 (4,295,067) 2,549,303 Total all other governmental funds 93,044,412 102,794,658 87,393,964 99,153,307

Total governmental fund balances $ 101,471,328 $ 109,300,510 $ 95,174,400 $ 107,718,409

229 Thurston County, Washington 2009

Changes in Fund Balances, Governmental Funds Last Eight Years Schedule 4 Page 1 of 2

2002 * 2003 * 2004 2005 Revenues Taxes $ 63,876,390 $ 67,737,066 $ 73,029,562 $ 79,956,010 Licenses & Permits 3,189,891 3,990,137 4,022,040 3,405,547 Intergovernmental 45,828,752 48,221,143 51,447,165 50,220,621 Charges for Services 10,893,062 12,590,822 12,262,767 13,101,887 Licenses & Permits 1,797,063 2,030,943 2,014,437 1,685,795 Miscellaneous Revenues 4,762,656 3,594,660 3,623,637 5,357,754 Total Revenues 130,347,814 138,164,771 146,399,608 153,727,614 Expenditures Current: General Government 12,526,820 27,465,835 12,334,046 11,087,069 Culture & Recreation 2,194,849 1,909,152 2,090,670 2,434,503 Economic Environment 12,440,678 13,928,626 14,011,780 12,214,885 Health & Human Services 30,215,637 26,104,525 31,977,912 37,928,487 Public Safety 41,390,917 32,434,249 46,354,376 50,382,437 Transportation 18,446,582 16,362,020 15,278,857 15,929,646 Utilities & Environment 1,362,896 1,390,703 1,531,650 1,683,928 Capital Outlay 11,127,093 9,780,600 19,824,822 15,966,881 Debt Service: Principal 10,503,163 1,762,244 1,686,668 2,030,687 Interest & Fiscal Charges 1,607,743 1,561,608 1,546,419 2,112,543 Total Expenditures 141,816,378 132,699,562 146,637,200 151,771,066 Excess of revenues over (under) expenditures (11,468,564) 5,465,209 (237,592) 1,956,548 Other Financing Sources (Uses) Capital Lease Financing 103,291 20,219 79,334 56,583 Sale of Capital Assets 1,782,237 619,006 - 534,338 Proceeds on Debt Issuance 10,535,820 - 10,937,244 2,925,000 Proceeds of Refunding Long-Term Debt - - - 15,700,000 Premium on Debt Issuance - - - - Premium on Refunding Long-Term Debt - - - 1,434,652 Payment on Bond Refunding - - - (16,175,000) Loss on Bond Refunding - - - (688,552) Transfers In 23,555,351 19,718,443 20,502,051 19,556,439 Transfers Out (23,354,775) (18,919,289) (20,449,780) (19,460,363) Total Other Fin. Sources (Uses) 12,621,924 1,438,379 11,068,849 3,883,097 Net Changes In Fund Balances 1,153,360 6,903,588 10,831,257 5,839,645 Fund Balances - January 1 67,233,469 68,386,829 77,654,565 87,919,557 Prior Period Adjustments - 2,364,148 (566,265) - Fund Balances - December 31 $ 68,386,829 $ 77,654,565 $ 87,919,557 $ 93,759,202 Debt Service as a percentage of noncapital expenditures 9.27% 2.70% 2.55% 3.05% * - Expenditures for general government, health and human services, and public safety in 2002 and 2003 were reclassified to reflect the classification and reporting of these expenditures in future reporting periods 230 Thurston County, Washington 2009

Changes in Fund Balances, Governmental Funds Last Eight Years Schedule 4 Page 2 of 2

2006 2007 2008 2009 Revenues Taxes $ 82,319,746 $ 91,113,992 $ 91,116,806 $ 89,956,040 Licenses & Permits 3,613,812 882,622 918,521 2,707,899 Intergovernmental 56,137,771 61,010,874 66,168,951 69,570,149 Charges for Services 14,426,571 14,368,811 14,375,638 14,218,080 Licenses & Permits 1,946,891 1,848,169 1,980,871 2,171,084 Miscellaneous Revenues 11,360,431 7,926,158 7,613,964 5,646,117 Total Revenues 169,805,222 177,150,626 182,174,751 184,269,369 Expenditures Current: General Government 12,458,313 13,205,568 14,751,746 13,065,871 Culture & Recreation 2,626,187 5,277,735 2,889,296 2,997,822 Economic Environment 13,994,510 10,915,507 12,842,043 15,638,115 Health & Human Services 42,970,710 45,177,946 47,295,544 46,171,555 Public Safety 54,521,751 62,016,426 66,370,124 66,470,577 Transportation 17,025,880 18,966,270 21,322,536 22,444,601 Utilities & Environment 1,669,964 1,618,652 1,707,449 1,286,913 Capital Outlay 12,766,428 12,434,621 20,756,004 40,786,693 Debt Service: Principal 2,338,226 3,062,950 2,564,554 2,701,669 Interest & Fiscal Charges 1,872,665 1,903,250 1,939,885 3,550,560 Total Expenditures 162,244,634 174,578,925 192,439,181 215,114,376 Excess of revenues over (under) expenditures 7,560,588 2,571,701 (10,264,430) (30,845,007) Other Financing Sources (Uses) Capital Lease Financing 118,934 227,453 131,166 94,204 Sale of Capital Assets 104,074 163,257 614,421 835,076 Proceeds on Debt Issuance - 5,000,000 - 42,765,000 Proceeds of Refunding Long-Term Debt - - - - Premium on Debt Issuance - 19,195 - Premium on Refunding Long-Term Debt - - - - Payment on Bond Refunding - - - - Loss on Bond Refunding - - - - Transfers In 12,630,062 15,502,808 22,202,676 51,252,923 Transfers Out (12,574,979) (17,634,200) (26,809,943) (51,558,187) Total Other Fin. Sources (Uses) 278,091 3,278,513 (3,861,680) 43,389,016 Net Changes In Fund Balances 7,838,679 5,850,214 (14,126,110) 12,544,009 Fund Balances - January 1 93,759,202 101,471,328 109,300,510 95,174,400 Prior Period Adjustments (126,553) 1,978,968 - - Fund Balances - December 31 $ 101,471,328 $ 109,300,510 $ 95,174,400 $ 107,718,409 Debt Service as a percentage of noncapital expenditures 2.82% 3.06% 2.62% 3.59%

231

Thurston County, Washington 2009

Principal Tax Payers 2009 Schedule 7

2009 2000

% of % of Total Total Taxable Taxable Taxable Asse sse d Taxable Asse sse d TAXPAYER Asse sse d Va lue Rank Value Asse sse d Va lue Rank Value

Vine Street Investors $ 323,672,700 1 1.07% $ 67,191,850 3 0.55% Puget Sound Energy 209,751,276 2 0.70% 168,743,041 1 1.38% Target Corporation 123,632,476 3 0.41% - - 0.00% Capital Mall 117,062,800 4 0.39% 32,155,200 10 0.26% Home Depot 85,214,605 5 0.28% - - 0.00% Panorama City Retirement Center 78,532,412 6 0.26% 45,263,593 5 0.37% Kaufman Development 72,117,326 7 0.24% 32,276,538 9 0.26% CDC Properties 65,096,800 8 0.22% 41,671,593 6 0.34% Qwest Corp 64,956,202 9 0.22% 69,562,156 2 0.57% Walt Cox 57,595,400 10 0.19% 15,692,910 - 0.13% Weyer.Timber/Weyerhaeuser - 45,606,748 4 0.37% Rainier General Real Estate Developer - 38,213,900 7 0.31% CNC Containers Corp - 33,137,600 8 0.27% -

Totals $ 1,197,631,997 3.98% $ 589,515,129 4.83%

Total County Assessed Value $ 30,117,613,424 $ 12,207,783,715

Source: Thurston County Treasurer 2000 Thurston County Comprehensive Annual Financial Statement

234 Thurston County, Washington 2009

Property Tax Levies and Collections Last Ten Years Schedule 8

Fiscal Collected Within the Collections Year Taxes Levied Fiscal Year of the Levy In Total Collections to Date Ended for the Percentage Subsequent Percentage Dec 31, Fiscal Year (1) Amount of Levy Years Amount of Levy

2000 $ 39,714,210 $ 38,417,951 96.7% $ 1,225,559 $ 39,643,510 99.8%

2001 $ 41,407,830 $ 40,123,022 96.9% $ 1,183,561 $ 41,306,583 99.8%

2002 $ 42,842,928 $ 41,365,902 96.6% $ 1,344,553 $ 42,710,455 99.7%

2003 $ 44,527,019 $ 43,201,855 97.0% $ 1,160,232 $ 44,362,087 99.6%

2004 $ 47,157,952 $ 45,941,853 97.4% $ 1,141,596 $ 47,083,449 99.8%

2005 $ 49,389,199 $ 48,213,465 97.6% $ 1,011,429 $ 49,224,894 99.7%

2006 $ 51,925,796 $ 50,710,182 97.7% $ 1,042,707 $ 51,752,889 99.7%

2007 $ 55,051,167 $ 53,584,294 97.3% $ 1,099,475 $ 54,683,769 99.3%

2008 $ 58,069,851 $ 56,320,869 97.0% $ 930,311 $ 57,251,180 98.6%

2009 $ 60,148,760 $ 58,007,320 96.4% - $ 58,007,320 96.4%

Source: Thurston County Treasurer

(1) Includes County General Fund, Roads, Veteran's, Medic One, Conservation Futures, Tax Refund, Mental Health Tax Levies, and Special Assessments. Current year taxes levied include adjustments. Spreadsheet adjusted to include adjustments, special assessments, and collections from subsequent years 2000-2008.

Percent of Levy Collected Within the Fiscal Year

100.0%

80.0%

60.0%

40.0%

20.0%

0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

235 Thurston County, Washington 2009

Legal Debt Margin Information Legal Debt Margin Calculation for Year 2009 Schedule 9

Total Assessed Property Valuation $ 29,248,858,362

Limited Tax General Obligation Debt Capacity (non-voted): Legal Limit of 1.5% of the Assessed Valuation $ 438,732,875 Less: Outstanding Limited Tax General Obligation Bond Debt (90,105,297) Add: Available Assets 158,850

Remaining Capacity (non-voted) $ 348,786,428

Limited Tax General Obligation Debt Capacity (voted and non-voted): Legal Limit of 2.5% of the Assessed Valuation $ 731,221,459 Less: Outstanding Limited Tax General Obligation Bond Debt (90,105,297) Add: Available Assets 158,850

Remaining Capacity (voted and non-voted) $ 641,275,012

Legal Debt Margin Information Legal Debt Margin Calculation for Year 2009 (amounts expressed in thousands)

Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Non-Voted Debt Limit $ 183,117 $ 195,570 $ 212,198 $ 230,269 $ 259,574 $ 298,962 $ 352,117 $ 432,141 $ 451,764 $ 438,733

Total Debt Applicable

to Non-Voted Limit $ 47,672 $ 42,683 $ 45,524 $ 43,789 $ 52,597 $ 41,349 $ 38,576 $ 52,982 $ 50,184 $ 90,105

Voted and Non- Voted

Debt Limit $ 257,523 $ 279,666 $ 308,139 $ 339,993 $ 380,027 $ 456,921 $ 548,286 $ 667,501 $ 702,782 $ 641,275

Total Debt as a

Percentage of

Non-Voted Capacity 26.03% 21.82% 21.45% 19.02% 20.26% 13.83% 10.96% 12.26% 11.11% 20.54%

236 Thurston County, Washington 2009

Total Outstanding Debt Information Last 10 Years Schedule 10 (in thousands of dollars)

Governmental-Type Activities Business-Type Activities Primary Government

Inter- Inter- % of General govern- General govern- Personal Per Fiscal Obligation mental Capital Obligation mental Capital Income (1) Capita Year Bonds Loans Leases Bonds Loans Leases Total (1) (2)

2000 $ 34,249 $ 450 $ 447 $ 14,010 $ 1,625 $ - $ 50,781 0.83% $ 249

2001 $ 32,826 $ 500 $ 336 $ 13,767 $ 1,489 $ - $ 48,918 0.75% $ 233

2002 $ 33,134 $ 474 $ 258 $ 13,500 $ 1,920 $ - $ 49,286 0.74% $ 232

2003 $ 31,541 $ 447 $ 115 $ 13,250 $ 4,040 $ - $ 49,393 0.72% $ 230

2004 $ 40,899 $ 421 $ 147 $ 12,718 $ 3,657 $ - $ 57,842 0.79% $ 265

2005 $ 41,686 $ 1,359 $ 156 $ 11,875 $ 2,317 $ - $ 57,393 0.73% $ 256

2006 $ 39,219 $ 1,109 $ 249 $ 11,470 $ 2,204 $ - $ 54,251 0.64% $ 235

2007 $ 42,444 $ 573 $ 354 $ 10,537 $ 1,917 $ 68 $ 55,893 0.61% $ 235

2008 $ 40,127 $ 231 $ 426 $ 10,057 $ 1,868 $ 89 $ 57,798 0.59% $ 215

2009 $ 80,748 $ - $ 306 $ 9,358 $ 1,585 $ 79 $ 92,076 N/A $ 369

(1) Represents County debt as a percentage of total personal income. Personal income is from the Bureau of Economic Analysis and is extracted from Schedule 14. Percent of personal income adjusted 2004-2007. (2) Represents the per capita portion of County Debt. County total population is from the Thurston County Regional Planning Council and is extracted from Schedule 14.

237 Thurston County, Washington 2009

Ratio of Net General Obligation Bonded Debt to Assessed Value Last Ten Years Schedule 11

Ratio of Net Net Gross Le ss Bonded Bonded Estimated G.O. Debt Net Debt to Debt Fisca l Popu- Actual Taxable Bonded Service Bonded Asse sse d Per Year lation (1) Value (2) Debt (3) Fund (4) Debt (4) Value Capita

2000 204,300 $ 13,504,319,864 $34,248,998 $18,672 $34,230,326 0.253% 168

2001 210,200 $ 14,616,393,055 $32,826,140 $23,485 $32,802,655 0.224% 156

2002 212,300 $ 15,415,161,583 $40,898,570 $70,331 $40,828,239 0.265% 192

2003 214,800 $ 16,512,221,448 $31,541,427 $38,381 $31,503,046 0.191% 147

2004 218,500 $ 19,052,585,828 $40,898,570 $35,896 $40,862,674 0.214% 187

2005 224,100 $ 22,008,389,994 $41,370,713 $36,833 $41,333,880 0.188% 184

2006 231,100 $ 27,232,569,553 $39,092,856 $38,676 $39,054,180 0.143% 169

2007 238,005 $ 32,983,472,843 $42,444,316 $115,236 $42,329,080 0.128% 178

2008 245,300 $ 34,657,540,113 $40,126,712 $28,133 $40,098,579 0.116% 163

2009 249,800 $ 33,965,346,087 80,747,618 4,397 $80,743,221 0.233% 339

(1) Source: Thurston County Regional Planning (2) Source: County Assessor Estimated Actual Taxable Value is the taxable value before exemptions are removed. (3) Excludes Grand Mound proprietary debt (4) 2006 Less Debt Service Fund and Net Bonded Debt adjusted

Net Bonded Debt

$90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

238

Thurston County, Washington 2009

Demographic and Economic Information Last 10 Years Schedule 13

Personal K-12 College Unincorp- Incorp- Total Income Per Capita School Enrollment Unemploy- orated orated Population (Thousands Personal Median Enrollment (Head Count) ment Rate Year Population Population (1) of Dollars) (2) (1) Age (1) (4) (1) (1) (3)

2000 115,350 88,950 204,300 $ 6,092,972 $ 34,398 36.5 37,786 10,699 5.00%

2001 116,300 93,900 210,200 $ 6,488,224 $ 35,164 36.5 35,760 10,895 5.70%

2002 117,935 94,365 212,300 $ 6,649,451 $ 34,876 36.5 37,945 10,922 5.80%

2003 119,475 95,325 214,800 $ 6,904,016 $ 34,946 36.5 38,102 11,362 5.70%

2004 122,265 96,235 218,500 $ 7,366,669 $ 35,786 36.5 38,477 11,926 5.20%

2005 126,450 97,650 224,100 $ 7,850,446 $ 36,400 37.9 39,176 11,654 5.00%

2006 131,805 99,295 231,100 $ 8,481,611 $ 37,370 37.9 39,679 12,164 4.70%

2007 135,615 102,390 238,005 $ 9,107,981 $ 38,242 37.9 39,476 12,646 4.40%

2008 139,605 105,695 245,300 $ 9,819,911 $ 39,988 37.9 40,235 13,314 6.30%

2009 139,010 110,790 249,800 n/a n/a 37.9 41,355 14,285 7.70%

(1) Thurston County Regional Planning Council, The Profile and Bureau of Economics *Per capita income adjusted for inflation 2000-2007. *Median Age reported every 5 years. *College Head count is fall of the previous year. Includes both full and part-time students enrolled at campuses located in Thurston County. (2) Bureau of Economic Analysis. 2003 through 2006 estimates adjusted to actual. (3) Washington State Employment Security Department, December 2009 (4) Washington State Superintendent of Public Instruction. 2006 enrollment adjusted.

Unincorporated Population Incorporated Population Total Population

300000 250000 200000 150000 100000 50000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

240 Thurston County, Washington 2009

Principal Employers Current Year and 10 Years Ago Schedule 14

Top Ten Employers for 2009 (1) (2)

Percentage of Total Employer Employees Rank County Employment State Government, Including Education 24,800 1 20.35% Local Government, Including Education 11,600 2 9.52% Providence St. Peter Hospital 2,400 3 1.97% Federal Government 900 4 0.74% Capital Medical Center 837 5 0.69% Red Wind Casino 626 6 0.51% Great Wolf Lodge 575 7 0.47% Lucky Eagle Casino 550 8 0.45% Fred Meyer Marketplace 470 9 0.39% Costco Wholesale Corp South Puget Sound 461 10 0.38%

Totals 43,219 35.47%

Total Employed (3) 121,890

Top Ten Employers for 2000 (1) (2)

Percentage of Total Employer Employees Rank County Employment State Government, Including Education 23,600 1 22.53% Local Government, Including Education 10,400 2 9.93% Providence St. Peter Hospital * 2,304 3 1.19% Federal Government 1,000 4 0.95% Safeway Stores * 656 5 0.63% Group Health Cooperative * 597 6 0.57% Memorial Clinic * 499 7 0.48% Capital Medical Center * 475 8 0.45% Panorama Corporation * 345 9 0.33% Miller Brewing Company 300 10 0.29%

Totals 40,176 37.35%

Total Employed (3) 104,770

(1) Source for Government Employment 2009 and 2000: Employment Security Department Not Seasonally Adjusted. (2) Source 2009 and 2000: Thurston Economic Development Council and Thurston Regional Planning. * Exact year 2000 numbers not available. Averages taken from 1999 and 2005. (3) Total Employed: Washington State Employment Security Department

241 Thurston County, Washington 2009

Government Employment Information Authorized Thurston County Positions by Function Last 10 Years Schedule 15 Page 1 of 2

Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

General Government Assessor 38.25 38.25 38.00 36.00 36.00 37.00 37.00 37.00 38.00 29.25 Auditor 41.00 39.00 37.00 37.00 37.00 40.00 40.00 41.00 40.50 39.50 Commissioners/County Admin 11.07 11.57 11.57 11.00 11.00 11.00 11.00 12.00 11.00 13.00 Treasurer 11.89 11.35 11.35 11.42 11.42 10.92 10.92 10.75 11.90 9.89 Human Resources 12.26 10.70 13.57 12.55 12.10 11.10 12.60 12.60 12.60 10.90 Planning 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6.00 Other General Gov Programs (3) 9.30 11.65 11.65 11.73 11.73 12.73 12.78 13.61 8.70 12.00 Central Services & Facilities (1) 61.75 60.75 60.75 61.75 58.00 58.00 58.00 60.34 64.34 61.00 Central Services Engineering (1) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.66 4.50 Total FTE 185.52 183.27 183.89 181.45 177.25 180.75 182.30 187.30 192.70 186.04

Public Safety Clerk 35.50 35.50 37.50 36.50 35.50 36.50 37.50 40.50 39.00 32.00 Superior Court 34.00 34.00 34.00 34.00 35.00 35.20 35.70 41.55 41.35 41.65 Dis tric t Court 29.00 29.00 29.00 28.00 29.00 30.00 30.00 32.00 33.00 24.50 Juvenile Probation 62.00 62.00 62.00 61.00 61.00 60.00 59.00 59.00 63.00 61.00 Prosecuting Attorney 60.14 62.14 65.45 68.45 67.45 65.45 66.45 69.45 70.45 63.95 Sheriff 108.50 111.00 116.00 110.00 110.00 110.00 112.00 113.25 120.25 109.00 Corrections 95.00 95.00 95.00 98.20 98.20 98.65 99.17 109.97 111.00 103.00 Coroner 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00 Assigned Counsel 8.50 8.25 9.25 9.25 9.25 16.63 20.63 21.00 24.00 19.00 Other Public Safety Programs (4) 9.00 10.25 9.25 9.25 11.25 10.10 11.33 9.68 13.15 15.65 Communications (1) 40.50 45.25 45.75 51.25 51.75 52.25 55.75 56.50 62.50 63.75 Total FTE 487.14 497.39 508.20 510.90 513.40 519.78 532.53 557.90 583.70 539.50

Culture & Recreation Cooperative Extension 3.50 3.50 3.50 3.50 3.50 2.50 2.50 2.50 2.50 1.50 Fair 3.20 3.45 3.45 3.45 4.45 3.70 3.70 3.70 3.70 3.70 Recreation Services 14.75 15.00 15.00 15.00 15.00 12.00 13.75 14.50 14.75 5.00 Total FTE 21.45 21.95 21.95 21.95 22.95 18.20 19.95 20.70 20.95 10.20

Health & Human Services Medic One & Reserve 5.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 7.00 7.00 Social Services 16.35 16.72 16.72 18.31 15.50 15.75 15.75 17.75 17.93 18.75 Public Health 90.68 94.26 100.63 103.31 103.90 108.20 106.30 112.40 110.82 92.70 Total FTE 112.03 116.98 123.35 127.62 125.40 129.95 128.05 136.15 135.75 118.45

242 Thurston County, Washington 2009

Government Employment Information Authorized Thurston County Positions by Function Last 10 Years Schedule 15 Page 2 of 2

Function/Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Transportation GeoData 6.00 6.00 7.00 8.00 7.00 7.00 8.00 7.50 7.50 7.25 County Roads 93.13 93.13 108.50 102.76 100.65 105.79 108.24 111.21 109.50 129.80 Roads Development Review 9.47 9.47 9.83 9.27 9.39 9.32 9.21 10.14 12.00 0.00 Roads Construction in Progress 12.90 12.90 10.17 13.47 23.82 15.75 17.35 14.15 18.00 15.50 ER&R Maintenance (1) 13.00 13.00 13.00 13.00 13.00 13.00 12.70 14.00 14.00 15.00 Total FTE 134.50 134.50 148.50 146.50 153.86 150.86 155.50 157.00 161.00 167.55

Economic Environment Veterans 0.44 0.31 0.31 0.18 0.63 0.63 0.63 0.75 0.75 0.75 Land Use and Permitting 48.25 48.75 49.75 53.75 57.75 58.00 62.00 65.00 64.00 39.00 Pacific Mountain 41.00 40.00 40.00 41.00 41.00 34.00 30.60 28.00 35.00 42.00 Housing & Community Review (5) 9.25 9.75 8.75 7.25 5.25 5.05 6.05 6.55 6.55 2.00 Total FTE 98.94 98.81 98.81 102.18 104.63 97.68 99.28 100.30 106.30 83.75

Utilities & Environment Water & Waste Mgt. Admin (2) 45.80 44.80 45.80 46.80 46.80 47.80 47.80 47.80 60.90 61.15 Noxious Weed Control 4.25 3.25 2.75 2.75 2.75 3.25 3.25 3.25 3.25 3.25 Total FTE 50.05 48.05 48.55 49.55 49.55 51.05 51.05 51.05 64.15 64.40

Budgeted FTE Count 1089.63 1100.95 1133.25 1140.15 1147.04 1148.27 1168.66 1210.40 1264.55 1169.89

(1) Internal Service Funds (2) Enterprise Funds (3) Other General Government Programs Include the following Internal Service Funds: Unemployment, Insurance Risk, and Benefits Admin. Also includes Auditor's M&O, Treasurer's M&O, and Investment Admin. (4) Other Public Safety Programs Include: Civil Service, Family Court-Clerk, Family Court-Superior Court, Victim Advocate Program, Prisoner's Concession and Clerk's Collection (5) Office of Program & Budget changed to Housing & Community Review

243 Thurston County, Washington 2009

Operating Indicators By Function/Program Last 10 Years Schedule 16 Page 1 of 4

Function/Program 2000 2001 2002 2003 2004

General Government General Elections Registered Voters 126,680 132,072 133,582 127,138 137,742 Votes Cast 98,610 58,131 73,859 49,949 113,996 % of Registered Voters Voting 77.84% 44.01% 55.29% 39.29% 82.76% Public Safety Sheriff's Office Jail Population (average) 428 463 446 488 473 Total Persons Booked 5,443 4,831 6,581 6,531 5,821 Citations (tickets) Issued 7,223 5,327 5,666 7,151 6,046 Juvenile Probation Average Caseload (monthly) 75 60 57 55 41 Population in Detention (average) 53 49 45 45 38 Courts District Court Filings 29,019 25,656 38,094 39,863 37,161 District Court Proceedings 28,727 32,020 30,900 34,492 37,966 Superior Court Filings (1) 11,724 11,939 12,101 13,404 13,283 Superior Court Proceedings (1) 35,930 35,291 36,270 36,514 35,585 Communications 911 Calls In 118,673 122,854 123,385 140,010 148,713 Culture and Recreation County Fair Attendance 36,419 37,857 36,152 32,827 31,240 Parks Attendance (7) 295,568 290,439 310,000 320,000 373,334 Health & Human Services Public Health Laboratory Water Tests 9,111 9,028 7,693 8,226 10,777 Persons Served/Reached (2) (4) 15,209 17,736 18,497 28,193 24,510 Social Services Cases (3) (4) 6,726 7,273 7,228 7,690 7,913 Medic One Reponses 17,610 19,876 19,894 19,595 20,545

244 Thurston County, Washington 2009

Operating Indicators By Function/Program Last 10 Years Schedule 16 Page 2 of 4

Function/Program 2005 2006 2007 2008 2009

General Government General Elections Registered Voters 136,918 134,876 134,615 148,911 147,343 Votes Cast 76,423 85,011 67,279 128,006 76,285 % of Registered Voters Voting 55.82% 63.03% 49.98% 86.96% 51.77% Public Safety Sheriff's Office Jail Population (average) 496 504 461 437 438 Total Persons Booked 6,213 6,297 6,201 6,029 5,776 Citations (tickets) Issued 5,682 6,324 4,296 5,341 5,210 Juvenile Probation Average Caseload (monthly) 45 40 42 41 39 Population in Detention (average) 45 43 47 41 31 Courts District Court Filings (8) 32,193 36,840 34,081 34,951 38,430 District Court Proceedings (8) 49,877 37,832 39,662 47,404 39,474 Superior Court Filings (1) 13,047 13,528 13,449 14,052 15,808 Superior Court Proceedings (1) 36,612 37,861 39,871 42,284 38,250 Communications 911 Calls In 148,957 147,478 150,583 152,148 143,756 Culture and Recreation County Fair Attendance 34,529 35,213 37,127 35,519 26,321 Parks Attendance (7) 433,525 691,212 1,059,085 1,292,115 1,026,663 Health & Human Services Public Health Laboratory Water Tests (4) 10,319 9,768 9,534 8,315 10,059 Persons Served/Reached (2) (4) 23,569 20,298 21,456 23,636 22,249 Social Services Cases (3) (4) 8,661 9,769 10,156 10,602 9,725 Medic One Reponses 20,600 22,743 24,800 24,625 26,605

245 Thurston County, Washington 2009

Operating Indicators By Function/Program Last 10 Years Schedule 16 Page 3 of 4

Function/Program 2000 2001 2002 2003 2004

Roads and Trans Services Litter Ctrl-Shoulder Miles 2,143 1,493 1,590 1,823 1,520 Litter Control-lbs of Litter 73,220 130,500 154,350 167,985 151,865 Striping Roads (Center Line Miles) n/a n/a 1,230 1,202.2 1,447.5 Paving-Overlay Miles 26 28 22 22 20 Paving-Chip Seal Miles 76 74 77 70 68 Economic Environment Building Permits Permits Issued 2,896 3,233 3,347 3,868 3,882 Value of Bldg (000's Omitted) 150,790 196,827 261,162 279,009 334,485 Utilities & Environment Waste and Recovery Center Customers 182,170 184,373 193,591 203,270 213,433 Recycling (tons) (5) 3,249 3,140 3,296 11,399 13,355 New Utility Connect, actuals (6) 10 9 64 6 8

246 Thurston County, Washington 2009

Operating Indicators By Function/Program Last 10 Years Schedule 16 Page 4 of 4

Function/Program 2005 2006 2007 2008 2009

Roads and Trans Services Litter Ctrl-Shoulder Miles 1,622 1,161 1,210 986 841 Litter Control-lbs of Litter 165,720 141,111 137,691 102,251 109,980 Striping Roads (Center Line Miles) 1,450.4 1,455.3 1,460 1,400 1,467 Paving-Overlay Miles 8 5 2 2 4 Paving-Chip Seal Miles 50 28 29 42 67 Economic Environment Building Permits Permits Issued 3,312 3,328 3,316 2,836 2,337 Value of Bldg (000's Omitted) 298,370 298,955 267,979 186,247 156,407 Utilities & Environment Waste and Recovery Center Customers 224,198 250,167 255,514 211,450 203,520 Recycling (tons) (5) 13,065 14,025 15,742 13,800 N/A New Utility Connect, actuals (6) 8 35 66 25 10

Source: Thurston County Offices and Departments (1) The Clerk's Office is the record keeper for all Superior Court cases which include cases for juvenile's. (2) Public Health persons served include Clinical Services, Health Education, Environmental Health Education, and Street Outreach (not available for 2000). Clinical Services no longer provided as of 06/30/09. (3) Social Services cases include Developmental Disabilities, Mental Health, and Substance Abuse cases. (4) Public Health 2007 updated. (5) 2000-2006 Include Recycling Drop Boxes and Waste and Recovery Center (WARC) Public Recycling Area, but excludes residential curbside collection. 2003-2006 also include WARC Pickline. 2007 revised. Recycling is no longer weighed and information no longer available after 2008. (6) Utility connections include sewer and water. (7) Parks attendance increased in 2006 because of the opening of the Regional Athletic Complex. (8) District Court 2006 filings and proceedings revised.

247 Thurston County, Washington 2009

Capital Asset Information Capital Asset and Infrastructure by Function/Program Last 10 Years Schedule 17 Page 1 of 2

2000 2001 2002 2003 2004 Function/Program (1) (6) (6) (2)

General Government Building Usage/Cnty Owned (sq feet) 25,236 25,236 25,236 25,901 25,901 Public Safety Building Usage/Cnty Owned (sq feet) 172,652 172,652 172,652 174,154 174,154 Sheriff's Vehicles 95 95 96 96 94 Sheriff's Boats 4 4 4 4 4 Sheriff's Special Purpose Vehicles 6 6 6 6 6 Culture & Recreation Building Usage/Cnty Owned (sq feet) 95,669 95,669 95,669 95,669 95,669 Parks 25 25 25 25 25 Parks Acres 2,773 2,773 2,773 2,773 2,773 Health & Human Services Building Usage/Cnty Owned (sq feet) 27,405 32,960 32,960 32,960 32,960 Transportation Building Usage/Cnty Owned (sq feet) 138,706 138,706 138,706 138,371 65,673 Paved Roads (in miles) 979 982 991 992 1,000 Unpaved Roads (in miles) 42 41 40 39 36 Economic Environment Building Usage/Cnty Owned (sq feet) 9,504 9,504 9,504 9,086 9,086 Utilities & Environment Building Usage/Cnty Owned (sq feet) (9) 66,411 66,411 66,411 66,411 66,411 Water Mains (in feet) 82,720 82,720 82,720 82,720 82,720 Storage Capacity (in gallons) 1,060,400 1,060,400 1,060,400 1,060,400 1,060,400 Sewer Mains (in feet) 80,270 80,270 80,270 80,270 80,270 Treatment Capacity (gallons per day) 484,000 484,000 484,000 484,000 484,000 Treat. Devices-Stormwater Sewers 11 15 20 24 26 Ponds Maintained (8) 16 20 25 29 32

248 Thurston County, Washington 2009

Capital Asset Information Capital Asset and Infrastructure by Function/Program Last 10 Years Schedule 17 Page 2 of 2

2005 2006 2007 2008 2009 Function/Program (3) (4) (7) (5) (5)

General Government Building Usage/Cnty Owned (sq feet) 92,126 92,916 92,916 99,015 79,430 Public Safety Building Usage/Cnty Owned (sq feet) 187,290 186,291 186,426 181,426 197,610 Sheriff's Vehicles 94 97 98 94 91 Sheriff's Boats 4 4 5 5 5 Sheriff's Special Purpose Vehicles 6 7 7 7 7 Culture & Recreation Building Usage/Cnty Owned (sq feet) 95,769 95,769 95,769 97,593 103,739 Parks 26 33 34 34 34 Parks Acres 2,804 2,709 2,712 2,712 2,712 Health & Human Services Building Usage/Cnty Owned (sq feet) 33,260 54,310 54,310 54,371 52,769 Transportation Building Usage/Cnty Owned (sq feet) 65,278 64,487 64,487 64,487 63,028 Paved Roads (in miles) 1,004 1,005 994 1,034 1,006 Unpaved Roads (in miles) 36 35 31 38 26 Economic Environment Building Usage/Cnty Owned (sq feet) 9,086 9,086 9,086 9,086 8,414 Utilities & Environment Building Usage/Cnty Owned (sq feet) (9) 66,411 66,411 66,411 66,411 66,411 Water Mains (in feet) 82,720 82,720 93,122 93,122 93,122 Storage Capacity (in gallons) 1,060,400 1,060,400 1,060,400 1,060,400 1,060,400 Sewer Mains (in feet) 80,270 80,270 86,836 86,836 86,836 Treatment Capacity (gallons per day) 484,000 484,000 484,000 484,000 484,000 Treat. Devices-Stormwater Sewers 29 32 34 36 36 Ponds Maintained (8) 35 38 44 95 29

Source: Thurston County Offices and Departments (1) Miles of paved and unpaved roads for year 2000 revised. (2) Roads Boulevard Building sold. (3) Mottman Building purchased. Assigned to General Government Fund occupancy. Vacant while restoring building. (4) Parks increased by 7 in 2006 because of the addition of parks for trails, but acreage decreased because the ORV Park was transferred to Grays Harbor County. (5) Decrease in roads paved and unpaved miles reflect annexation of roads to surrounding cities. (6) 2001 and 2002 Health & Human Services corrected. New building opened in 2001. (7) 2006 Health & Human Services corrected. Evaluation & Treatment Center opened in 2006. (8) Non County owned ponds are maintained during intial Homeowners Association startup. (9) Building Usage adjusted for utilities & environment to include Waste & Recovery Center and other utitlities

249 Thurston County, Washington 2009

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