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PIERCE COUNTY STATE of WASHINGTON Annual Comprehensive Financial Report for the Year Ended December 31, 2020

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PIERCE COUNTY STATE of WASHINGTON Annual Comprehensive Financial Report for the Year Ended December 31, 2020 PIERCE COUNTY STATE OF WASHINGTON Annual Comprehensive Financial Report For the Year Ended December 31, 2020 Pierce County Executive BRUCE DAMMEIER Pierce County Council MARTY CAMPBELL CONNIE LADENBURG JIM MCCUNE DAVE MORELL DOUG RICHARDSON PAM ROACH DEREK YOUNG Director of Finance Department GARY ROBINSON Note: Elected officials as of December 31, 2020 Finance staff whose contributions made this document possible: Laura Balbi, Jim Block, Bill Coughlin, Brandon Kirkwood, Beth Pall-Brogan, Karen Shiles, Melissa Sturzen, Thomas Taylor, and Chris Yoo Pierce County encompasses 1,794 square miles with elevations ranging from sea level at Puget Sound in the west to Mount Rainier standing at 14,411 feet in the southeast. TABLE OF CONTENTS December 31, 2020 INTRODUCTORY SECTION Transmittal Letter ................................................................................................................. I Elected Officials ................................................................................................................... II Organizational Structure ......................................................................................................III FINANCIAL SECTION Independent Auditor’s Opinion ......................................................................................... 1 Management’s Discussion and Analysis ............................................................................ 5 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ...............................................................................................19 Statement of Activities ...................................................................................................21 Fund Financial Statements: Governmental Funds: Balance Sheet ...........................................................................................................22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..................................................................................23 Statement of Revenues, Expenditures and Changes in Fund Balances ...............................24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ....................................25 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: General Fund ..........................................................................................................26 COVID-19 Relief Act Fund .........................................................................................27 Roads Special Revenue Fund .....................................................................................28 Proprietary Funds: Statement of Net Position ...........................................................................................29 Statement of Revenues, Expenses and Changes in Net Position .......................................32 Statement of Cash Flows .............................................................................................33 Fiduciary Funds: Combined Statement of Fiduciary Net Position ................................................................35 Combined Statement of Changes in Fiduciary Net Position ...............................................36 Notes to Financial Statements: Note 1 – Summary of Significant Accounting Policies ........................................................37 Note 2 – Stewardship, Compliance and Accountability ......................................................49 Note 3 – Reconciliation of Government-Wide and Fund Financial Statements .......................51 Note 4 – Cash and Investments .....................................................................................54 Note 5 – Restricted Accounts .........................................................................................57 Note 6 – Receivables ....................................................................................................59 Note 7 – Property Taxation ...........................................................................................61 Note 8 – Capital Assets .................................................................................................63 Note 9 – Debt ..............................................................................................................65 Note 10 – Commitments ................................................................................................70 Note 11 – Net Position and Fund Balances ........................................................................72 Note 12 – Interfund Transactions .....................................................................................73 Note 13 – Joint Ventures ................................................................................................75 Note 14 – Risk Management............................................................................................76 Note 15 – Postemployment Health Care Benefits ...............................................................78 Note 16 – Employee Retirement Systems and Plans ..........................................................85 Note 17 – Contingencies ................................................................................................97 Note 18 – Subsequent Events .........................................................................................98 Note 19 – Covid-19 Pandemic .........................................................................................99 Note 20 – Prior Period Adjustments ............................................................................... 100 Required Supplementary Information: Schedule of Changes in Total Other Postemployment Benefit Plan Liability ............................ 101 Schedule of Proportionate Share of the Net Position ........................................................... 103 Schedule of Employer Contributions ................................................................................. 108 Combining and Individual Fund Statements and Schedules: Supplemental General Fund Schedules: Fund Description ......................................................................................................... 113 Schedule of Expenditures and Other Financing Uses by Department .................................. 114 Nonmajor Governmental Funds: Fund Type Descriptions ................................................................................................ 115 Combining Balance Sheet ............................................................................................. 116 Combining Statement of Revenue, Expenditures and Changes in Fund Balances .................. 117 Nonmajor Special Revenue Funds: Fund Descriptions ..................................................................................................... 119 Combining Balance Sheet .......................................................................................... 123 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............. 135 Nonmajor Capital Project Funds: Fund Descriptions ..................................................................................................... 147 Combining Balance Sheet .......................................................................................... 148 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............. 151 Nonmajor Governmental Funds Supplementary Budget Comparison: Nonmajor Special Revenue Funds ............................................................................... 154 Nonmajor Debt Service Funds .................................................................................... 155 Nonmajor Capital Project Funds .................................................................................. 155 Internal Service Funds: Fund Descriptions ........................................................................................................ 157 Combining Statement of Net Position ............................................................................. 158 Combining Statement of Revenues, Expenses and Changes in Net Position ......................... 161 Combining Statement of Cash Flows .............................................................................. 164 Nonmajor Enterprise Funds: Fund Descriptions ........................................................................................................ 171 Combining Statement of Net Position ............................................................................. 172 Combining Statement of Revenues, Expenses and Changes in Net Position ......................... 174 Combining Statement of Cash Flows .............................................................................. 175 Trust and Custodial Funds: Fund Descriptions ........................................................................................................ 177 Private-Purpose Trust Funds: Combining Statement of Fiduciary Net Position ............................................................. 180 Combining Statement of Changes in Fiduciary Net Position ............................................ 181 Other Custodial Funds: Combining Statement of Fiduciary Net Position ............................................................. 182 Combining Statement of Changes in Fiduciary Net Position ...........................................
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