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 ...... 186 External Investment Pool: Combining Statement of Fiduciary Net Position ...... 190 Combining Statement of Changes in Fiduciary Net Position ...... 191
STATISTICAL SECTION
Description: ...... 193 Schedule 1 – Net Position by Component, Last Ten Fiscal Years ...... 194 Schedule 2 – Changes in Net Position, Last Ten Fiscal Years ...... 195 Schedule 3 – Fund Balances - Governmental Funds, Last Ten Fiscal Years ...... 197 Schedule 4 – Changes in Fund Balances - Governmental Funds, Last Ten Fiscal Years ...... 198 Schedule 5 – Taxable and Estimated Actual Value of Taxable Property, Last Ten Fiscal Years ..... 200 Schedule 6 – Property Tax Rates - Direct and Overlapping Governments, Last Ten Fiscal Years ...... 201 Schedule 7 – Principal Property Tax Payers, For 2020 and 2011 Property Tax Levies ...... 202 Schedule 8 – Property Tax Levies and Collections, County Operating Funds, Last Ten Fiscal Years ...... 203 Schedule 9 – Ratios of Outstanding Debt by Type, Last Ten Fiscal Years ...... 204 Schedule 10 – Ratios of General Bonded Debt Outstanding, Last Ten Fiscal Years ...... 205 Schedule 11 – Legal Debt Margin Information, Last Ten Fiscal Years ...... 206 Schedule 12 – Pledged-Revenue Coverage, Last Ten Fiscal Years ...... 207 Schedule 13 – Demographic Statistics, Last Ten Fiscal Years ...... 208 Schedule 14 – Principal Employers, Current Year and Ten Years Ago ...... 209 Schedule 15 – Full-Time Equivalent County Government Employees by Function, Last Ten Fiscal Years ...... 210 Schedule 16 – Operating and Capital Indicators by Function, Last Ten Fiscal Years ...... 211
Finance Department GARY ROBINSON Director
950 Fawcett Avenue, Suite 100 Tacoma, Washington 98402 (253) 798-7285 FAX (253) 798-6699
June 30, 2021
Honorable County Executive, Members of the County Council, and Pierce County Residents
TRANSMITTAL LETTER
I INTRODUCTION
I am pleased to present the 2020 Annual Financial Report for Pierce County, Washington prepared by the Finance Department that displays the County’s financial position as of December 31, 2020, the results of its operations, and cash flows of its proprietary funds for the year then ended. Responsibility for accuracy of the data presented, and completeness and fairness of presentation, including disclosures, rests with the County.
The report is prepared using the governmental financial reporting model required by Generally Accepted Accounting Principles so that it will provide a clear fiscal picture of the County as a single unified entity while continuing to provide traditional fund-based financial statements. Both the government-wide and major fund reporting perspectives let the reader address relevant questions; establish a basis for comparison (year-to-year, or government-to-government); and enhance County accountability. The Office of the State Auditor conducts annual financial and compliance audits as required by state law. The 2020 audit of County financial statements was conducted in accordance with generally accepted auditing standards and resulted in an unmodified audit opinion.
The independent audit of the financial statements was part of a broader, federally-mandated “Single Audit” designed to meet special needs of federal grantor agencies. Standards governing Single Audit engagements require the independent auditor to report not only on fair presentation of the financial statements, but also on the audited government’s system of internal controls and compliance with legal requirements. Special emphasis is placed on internal controls and legal requirements involving the administration of federal awards. Reports on internal control and compliance with legal requirements are available in the separately issued Single Audit Report.
The County also maintains an internal audit function to ensure adequacy of internal accounting controls. The accounting system is structured to facilitate the effectiveness of internal accounting controls designed to provide reasonable assurance that assets are safeguarded and that financial records are reliable for preparing financial statements and maintaining accountability of assets. In addition, the Performance Audit Division of the County Council conducts operational audits of County agencies. Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A compliments this letter of transmittal and should be read in conjunction with it. II PIERCE COUNTY PROFILE The first settlers of the land that is now Pierce County were ancestors of today's Nisqually, Puyallup, Squaxin, Steilacoom, and Muckleshoot tribes who lived in the area many thousands of years ago, where saltwater, lakes, and rivers provided abundant food, trade and transportation. The same tribes were all here as English sea captain George Vancouver sailed the inland waters south to what would become Seattle where he instructed his lieutenant, Peter Puget, to continue exploring southward in smaller boats. The inland waters were named Puget's Sound in honor of the young naval officer.
In 1852, the Territorial Legislature of Oregon determined that Thurston County, which stretched from Olympia to the Canadian border and from the Cascades to the Pacific Ocean, was far too large. In response, the Legislature portioned out of it King, Jefferson, and Pierce Counties. The Legislature also appointed the first County officers and located the County seat at Steilacoom – the only town in Washington with its own jail.
Pierce County became a Home Rule County in 1981 by a vote of the people. The County is governed by an elected County Executive and seven elected Council members. The Prosecutor, Assessor-Treasurer, Auditor, Superior Court Judges, Sheriff, and District Court Judges are also elected.
The County provides certain services on a countywide basis and other services only to unincorporated areas of the County. Depending on the jurisdiction the County provides law enforcement, criminal detention, fire prevention, judicial administration, parks and recreation facilities, planning and zoning, road maintenance and construction, a sewer utility, community services, tax assessments and collections, economic development, and general administrative functions.
The County has ten hospitals, fifteen public school districts, several private schools, and is served by two technical colleges, two community colleges, and six four-year colleges or universities.
Population, Income and Economic Conditions
Pierce County covers 1,794 square miles (1,676 square miles of land and 118 square miles of water). As of 2020, there were an estimated 900,700 people living in Pierce County – up from 2019 by 12,400 or 1.4 percent. Approximately 52.7 percent of Pierce County residents live in cities and towns. The four largest cities are Tacoma (213,300), Lakewood (60,030), Puyallup (42,700), and University Place (33,310).
Beginning in March 2020, the COVID-19 pandemic had a substantial impact on the global, national, state and Pierce County economies through the balance of the year. This is most readily seen in the average annual unemployment rate for the Tacoma/Pierce County area that reached 9.8 percent in 2020 (US Department of Labor-Bureau of Labor Statistics) – up from 5.1 percent in 2019. Federal relief from direct payments and expanded unemployment benefits provided needed support for households, families, and business. For the last year where data were available, median household income increased 1.86 percent from $70,321 in 2018 to $71,629 by 2019.
Port facilities play an important role in the County economy. In 2015, the Port of Tacoma and the Port of Seattle formed a strategic alliance now known as the Northwest Seaport Alliance. That same year, the state Legislature passed a $16.2 billion transportation package with major investments to complete State Routes 167 and 509 and to add capacity to Interstate 5 at Joint Base Lewis McChord and Interstate 90 at Snoqualmie Pass – all key to the Seaport Alliance’s goals to increase terminal utilization, enhance productivity, and expand rail competitiveness.
Pierce County’s major employers include Joint Base Lewis-McChord, major hospitals, the public schools, a variety of universities and colleges, and several large state and local governments.
2020 Pierce County Major Employers – Public and Private Sector Rank Organization Employees Industry 1 JOINT BASE LEWIS-MCCHORD 54,000 MILITARY 2 MULTICARE HEALTH SYSTEM 8,264 HEALTHCARE 3 STATE OF WASHINGTON 7,859 GOVERNMENT 4 CHI FRANCISCAN HEALTH 5,682 HEALTHCARE 5 TACOMA PUBLIC SCHOOLS 3,649 EDUCATION 6 CITY OF TACOMA & TACOMA PUBLIC UTILITIES 3,623 GOVERNMENT 7 PIERCE COUNTY GOVERNMENT 3,304 GOVERNMENT 8 PUYALLUP SCHOOL DISTRICT 2,711 EDUCATION 9 BETHEL SCHOOL DISTRICT 2,689 EDUCATION 10 SAFEWAY & ALBERTSONS 2,153 RETAIL 11 EMERALD QUEEN CASINO 2,146 GAMING 12 FRED MEYER RETAIL & DISTRIBUTION CENTER 1,802 RETAIL & DISTRIBUTION 13 AMAZON DISTRIBUTION CENTERS 1,800 DISTRIBUTION 14 CLOVER PARK SCHOOL DISTRICT 1,782 EDUCATION 15 BOEING 1,550 AEROSPACE 16 U.S. POSTAL SERVICES 1,336 GOVERNMENT 17 COSTCO 1,318 RETAIL 18 PENINSULA SCHOOL DISTRICT 1,284 EDUCATION 19 PUYALLUP TRIBE 1,274 GOVERNMENT 20 SUMNER SCHOOL DISTRICT 1,270 EDUCATION
Source: Economic Development Board for Tacoma-Pierce County
Construction Activity
Construction activity is an important economic indicator that affects both sales and property tax revenues – and has an impact on planning, permits, land services, public works, and public construction activities. In 2020 construction activity measured by permits decreased 0.2 percent from the prior year.
Real Estate Excise Tax Building Permits $ Thousands
20,000 30,000 18,000 24,063 3,096 2,853 25,000 16,000 2,905 3,169 21,829 2,926 20,722 14,000 2,748 18,962 20,000 12,000 15,715 10,000 15,000 12,937 8,000 14,084 14,507 13,697 14,688 14,335 6,000 12,626 10,000 4,000 5,000 2,000 0 0 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 All Other Residential
In addition, real estate excise tax (REET) is collected on the sale or transfer of real property in unincorporated Pierce County. The revenue is used to finance new capital improvements or major repairs/enhancements to existing County structures and facilities.
Property Taxes
Property taxes and other related taxes are a major revenue source for Pierce County. Beginning in 2002, state statute limits annual property tax revenue growth to a one percent increase, plus new construction and improvements. Growth in excess of one percent is primarily from new construction.
Property Taxes and Valuation (General Fund) 2015-2020
Percent Change $ Billions Total Assessed Valuation 160.0 15.0% 12.6% 12.1% 137.7 10.2% 140.0 10.1% 9.5% 125.8 10.0% 120.0 114.2 6.2% 101.4 5.0% 100.0 90.5 82.2 0.0% 80.0 -5.0% 60.0 -10.0% 40.0 -15.0% 20.0
0.0 -20.0% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
$ Millions Total Property Tax Amount Percent Change 160.0 147.9 143.8 3.0% 2.9% 140.2 2.8% 140.0 136.4 132.9 133.7 2.6% 2.5% 120.0 2.3%
2.0% 100.0 2.0%
80.0 1.5%
60.0 1.0% 40.0 0.6% 0.5% 20.0
0.0 0.0% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Sales Taxes
Sales and use taxes are also a significant source of revenue. Growth occurs in “normal” years due to inflation, population increase, and fluctuations in the strength of the local economy. State Department of Revenue audit activity, annexations, business openings and closings, and consumer confidence also affect sales tax revenue. During the pandemic, households and businesses received direct payments, loans, rental assistance, and enhanced unemployment insurance payments that supported spending on taxable goods and services. This resulted in near-normal amounts of sales tax revenue for the County.
Sales and Use Taxes (General Fund) 2015–2020
Total Sales Tax Amount Percent Change $ Millions
120.0 14.0% 11.7% 99.2 12.0% 100.0 94.1 86.6 77.5 10.0% 80.0 8.7% 8.7% 71.3 66.1 7.9% 8.0% 60.0 5.8% 6.0% 5.4% 40.0 4.0%
20.0 2.0%
0.0 0.0% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Long Term Financial Planning
Pierce County’s Executive and Council proposed, and voters approved, a charter amendment to adopt biennial budgeting starting in the 2020-21 period. Much of the work to plan, prepare, and modify systems and procedures to implement the 2020-21 biennial budget took place in 2019. Having a biennial budget in place as the COVID-19 pandemic took hold provided needed stability and organizational capacity to focus on public health responses, economic and community supports, and essential government services.
Pierce County’s estimated population grew 1.4 percent from 2019 to 2020 for a net gain of 12,400 people with the economic outlook showing significant growth and improvement. The 2020-21 budget addressed growing service demands by adding capacity in various departments such as: Human Services to better address behavioral health issues; Facilities Management; Assigned Counsel; Sheriff; Human Resources; and the Prosecuting Attorney.
Revenue to pay for these additions will come from a combination of property taxes, added sales tax revenue, and certain increases in licenses, permits, and service charges. In 2020-21 the County may be affected by:
• Federal and State Grants. Grant allocations from the state and federal governments in response to the pandemic resulted in large direct allocations of funds to the County including $158 million from the CARES Act of 2020 and substantial state allocations primarily for emergency rental assistance. The County will continue to receive large federal allocations and additional state allocations so will adjust the 2020-21 budget and prepare the 2022-23 budget accordingly.
• Property Tax Payments - The 2020-21 budget assumes the 1.0 percent growth rate available under state law, plus new construction and improvements. Tax payments are expected to be received in line with the pattern of prior years. Delinquencies or foreclosure collections for 2017 are expected to continue to decline with growth in the real estate market.
• Building and Facility Needs – Many parts of County government shifted to remote work in response to the pandemic. Planning is underway for a post-pandemic re-occupation of County facilities that reduces the amount of physical space needed, changes how it is used, and reconfigures the County owned and leased facility portfolio accordingly. With limited revenue available for infrastructure projects there may need to be resources reallocated should there be need to make repairs.
• Planning and Public Works - The Division of Planning and Land Services (PALS) is charged with the review of all development and construction permits in the County. Total construction projects increased during 2020.
• Pierce County participates in local long-range planning processes to develop and implement strategies that will ensure the long-term economic prosperity in the Central Puget Sound region such as:
o Employment & Training Consortium o South Sound Together o Pacific NW Aerospace Alliance o Tacoma-Pierce County Chamber of Commerce o Pierce and Sound Transit o Washington Association of Counties o Pierce County Regional Council o South Puget Sound Council o Puget Sound Regional Council o Washington Aerospace Partnership o Regional Access & Mobility Project o Transportation 2040 Prioritization Working o Seattle Trade Development Alliance o Water Utility Coordinating Committee o Tacoma-Pierce County Health o Tacoma Regional Convention and Visitors Department Board of Health Bureau
o South Sound Military Communities o Tacoma-Pierce County Economic Partnership Development Board
Financial Policies
The County maintains a set of financial policies to guide fiscal and budgetary decision making including:
• County Investment Policies and Procedures that guide investment management.
• County Debt Management Policies that outline procedures for financing County capital needs.
• Finance Department Fiscal Policies that – among others – guide:
Budget Preparation and Monitoring o o Revenue Sources and Uses
Fund Balance Management o o Expenditure Authorization and Control
Major Initiatives
Major initiatives in Pierce County’s 2020-21 budget focused on creating vibrant communities, an entrepreneurial climate, and a customer-focused, effective government designed to enhance the livability of the region.
Vibrant Communities • The 2020-21 budget includes many key initiatives to build and sustain vibrant communities, by:
o Investing in creating healthy neighborhoods by funding support for the “Help Me Grow” family support program and waiving fees to expand Tacoma Public Schools’ Housing Assistance Program.
o Supporting military veterans by expanding the one-stop Service Center where veterans and their family members can conveniently access benefits support, housing vouchers, job referrals, and other services they’ve earned.
o Building on the proven success of the Mobile Community Intervention Response Team by designing and building a new Crisis Recovery Center that will provide evaluation and treatment for our community members dealing with behavioral health challenges.
o Funding programs that brings greater community awareness and outreach help for those victimized by human trafficking in the region.
o Investing in technology that will provide administrative support for law enforcement and the courts.
Entrepreneurial Climate • An entrepreneurial climate is where companies have access to an outstanding workforce, a reasonable cost for doing business, and are in a great place for their employees to live. Pierce County is investing in:
o Deploying a new website called Invest Pierce County (InvestPierceCounty.com) that gives users access to a robust interactive online search tool to find available commercial sites and buildings in Pierce County.
o Adding several permitting jobs to increase the speed with which building permits for commercial and multi-family buildings are reviewed and processed.
o A planned initiative to bring the innovative PALS+ permit system into the cloud to bring even better service to permit applicants.
Effective Government • The 2020-21 budget steps up efforts to deliver Pierce County residents the effective, transparent and accountable government they deserve and expect, by:
o Bringing together department teams performing similar work into integrated “Centers of Excellence.” The teams include Communications, Facilities Management, Finance, and Human Resources.
o Embarking on an ambitious effort to create a more diverse, equitable, and inclusive place to work. Over the next two years, internal work teams will focus on improving outreach to attract diverse candidates to apply for open positions, and to ensure that all County employees are provided with opportunities to succeed.
III AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Pierce County for its Annual Financial Report for the year ended December 31, 2019. The County has received this award annually since 1983.
To earn the Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized annual report with contents that conform to program standards and satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. The current report continues to conform to the Certificate of Achievement program requirements, and is being submitted to GFOA to determine eligibility for another certificate.
The timely preparation of this report would not have been possible without the efficient and dedicated work of the Accounting Division of the Finance Department and the many other County personnel who assisted and contributed during the year. We especially thank the County Executive and the County Council whose interest in, and support of, properly meeting the County’s financial obligations have significantly contributed to creating financial operations of the highest quality.
Respectfully submitted,
Gary Robinson Director of Finance
Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting
Presented to Pierce County Washington
For its Comprehensive Annual Financial Report For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
ELECTED OFFICIALS Pierce County December 31, 2020
COUNCIL: District 1 Dave Morell District 2 Pam Roach District 3 Jim McCune District 4 Connie Ladenburg District 5 Marty Campbell District 6 Doug Richardson District 7 Derek Young
COUNTY EXECUTIVE Bruce Dammeier
PROSECUTING ATTORNEY Mary Robnett
SHERIFF Paul Pastor
AUDITOR Julie Anderson
ASSESSOR/TREASURER Mike Lonergan
JUDICIAL: Superior Court Judges: Edmund Murphy Stephanie A. Arend Kathryn J. Nelson Bryan E. Chushcoff Jack Nevin Jerry Costello James R. Orlando G. Helen Whitener Stanley J. Rumbaugh Frank E. Cuthbertson Michael Schwartz John R. Hickman Susan K. Serko Karena Kirkendoll Philip Sorensen Gary Johnson Grant Blinn Gretchen Leanderson Timothy Ashcraft Elizabeth Martin Kitty-Ann van Doorninck Shelly Speir
District Court Judges: Karla E. Buttorff Kevin McCann Lloyd Oaks Karl Williams Lizanne Padula Claire Sussman Judy Rae Jasprica Jeanette A. Lineberry
II
ORGANIZATIONAL OVERVIEW PIERCE COUNTY 2020
Pierce County’s home-rule charter was approved by the voters in November 1980 and became effective on May 1, 1981. The charter separated executive and legislative responsibilities by establishing the position of County Executive to serve as the chief executive officer and a seven-member Council to serve as the legislative branch.
The Council sets policy and approves the annual budget. Council members are nominated and elected by the voters of seven districts in Pierce County. Legislative authority is exercised by adoption and enactment of ordinances or resolutions. The executive branch is comprised of the Executive and all executive departments established by the Charter or ordinance. Executive departments include three currently elected positions (Assessor/Treasurer, Auditor and Sheriff) with the other department directors recommended by the Executive and approved by the Council.
III
Office of the Washington State Auditor Pat McCarthy
INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS
The Honorable County Executive and Members of the Pierce County Council Pierce County Tacoma, Washington
REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Pierce County, as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
1 accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Pierce County, as of December 31, 2020, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General, COVID-19 Relief Act, and Roads Special Revenue funds for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Matters of Emphasis As discussed in Note 1 to the financial statements, in 2020, the County adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. Our opinion is not modified with respect to this matter.
As discussed in Note 19 to the 2020 financial statements, the full extent of the COVID-19 pandemic’s direct or indirect financial impact on the County is unknown. Management’s plan in response to this matter is also described in Note 19. Our opinion is not modified with respect to this matter.
Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2 Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements as a whole. The combining and individual fund statements and schedules are presented for the purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. This information has been subjected to auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
The Introductory and Statistical Sections are presented for purposes of additional analysis and are not a required part of the basic financial statements of the County. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we will also issue our report dated June 29, 2021, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report will be issued under separate cover in the County’s Single Audit Report. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance.
Sincerely,
Pat McCarthy, State Auditor Olympia, WA June 29, 2021
3 4
MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the Annual Comprehensive Financial Report for Pierce County provides an overview of County financial activities for the fiscal year ended December 31, 2020 that provides a view of the County’s financial performance as a whole.
OVERVIEW OF THE FINANCIAL STATEMENTS
A world-wide COVID pandemic emerged in early 2020 that resulted in emergency declarations by the US President, the Washington State Governor, and the County Executive. Pierce County was one of five local jurisdictions in Washington state to receive a direct allocation of federal funds pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act adopted by the US Congress in March, 2020. Pierce County’s allocation of $158 million was received and expended during 2020 to provide public health response, economic relief, community services, and essential government services. The receipt and expenditure of this large federal allocation appears in several places in this report.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The statement of net position presents information on all County assets, liabilities, and deferred inflows/outflows with the difference reported as net position. Increases or decreases in net position help to assess how the financial position of the County changes over time.
The statement of activities shows changes in the government’s net position for the most recent fiscal year. Changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows so revenues and expenditures reported in this statement for some items will affect cash flows in future fiscal periods.
Both government-wide financial statements distinguish between County governmental functions principally supported by taxes and intergovernmental revenues and business-type activities intended to recover all or a significant portion of operating costs through user fees and charges. County governmental activities include general government, public safety, physical environment, legal, judicial, economic development, transportation, health and human services, culture and recreation. Business- type activities include the sewer utility, Chambers Creek Regional Park, solid waste management and the associated landfill reserve, two airports, ferry services, and one golf course.
FUND FINANCIAL STATEMENTS
Fund financial statements are designed to report information about a group of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. County funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
GOVERNMENTAL FUNDS
Essentially the same functions reported as governmental activities in government-wide financial statements are reported in the governmental fund financial statements. Unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources and on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
5
Because the focus of governmental funds 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 government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term 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 as reported in government-wide statements.
The County maintains a general fund and other individual governmental funds organized by type (special revenue, debt service, and capital projects). Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the COVID-19 Relief Fund, and the Roads Fund that are considered major funds. Data from other governmental funds are combined into a single, aggregated presentation. Individual fund data for each nonmajor governmental fund are provided in the form of combining statements elsewhere in this report.
Budgetary comparison statements are presented for the General Fund, COVID-19 Relief Fund, and Roads Fund that display the flow of resources for these funds in relation to the legally adopted budget.
PROPRIETARY FUNDS
Pierce County’s two types of proprietary funds are Enterprise Funds and Internal Service Funds. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements such as the Sewer Utility, Chambers Creek Regional Park, Solid Waste Management, Landfill Reserve, Airport, Ferry Services, and the Golf Courses. Internal Service Funds accumulate and allocate costs internally among various County functions such as Equipment and Fleet services, Information Technology Services, Facilities Management, Radio Communications, General Services, Self-Insurance, and Workers Compensation activities.
Proprietary funds provide the same type of information as the government-wide financial statement, only in more detail. The proprietary fund financial statements provide separate information for the Sewer Utility Fund which is considered by the County to be a major fund. Data from other Enterprise Funds and all nine Internal Service Funds are combined into individual, aggregated columns for presentation with individual fund data provided in combining statements elsewhere in this report.
FIDUCIARY FUNDS
Resources held for the benefit of parties outside the government are accounted for in fiduciary funds. These funds are not available to support County programs so are not reflected in government-wide financial statements. The accounting for fiduciary funds is much like that for proprietary funds.
GOVERNMENT- WIDE FINANCIAL ANALYSIS
Condensed versions of the government-wide statements of activities and net position for both governmental and business-type operations are shown on the next page with government-wide statements presented in detail in the financial section of this report.
6
STATEMENT OF NET POSITION
The following is a summary of the government-wide statement of net position presented in detail in the financial section of this report:
Government-Wide Financial Analysis Condensed Statement of Net Position (In Thousands) Governmental Business-Type Activities Activities Total 2020 2019 2020 2019 2020 2019
Current Assets $ 602,081 $ 535,084 $ 85,394 $ 80,038 $ 687,475 $ 615,122 Restricted Assets 25,302 27,542 25,927 39,792 51,229 67,334 Capital Assets 1,243,911 1,193,793 819,386 824,749 2,063,297 2,018,542 Total Assets 1,871,293 1,756,419 930,707 944,579 2,802,000 2,700,998 Deferred Outflows of Resources 33,629 24,513 2,726 1,973 36,355 26,487
Current Liabilities 80,881 52,273 10,620 14,169 91,501 66,442 Noncurrent Liabilities 323,830 288,371 343,554 355,470 667,384 643,841 Total Liabilities 404,711 340,644 354,174 369,639 758,885 710,283 Deferred Inflows of Resources 28,591 51,730 8,640 3,597 37,231 55,327 Net Investment in Capital Assets 1,109,160 1,041,817 486,858 482,286 1,596,018 1,524,103 Restricted 215,657 230,195 22,477 35,797 238,134 265,992 Unrestricted 146,803 116,547 61,284 55,233 208,087 171,780 Total Net Position$ 1,471,620 $ 1,388,559 $ 570,619 $ 573,316 $ 2,042,239 $ 1,961,875
Financial Highlights
Overall economic growth resulted in most County revenue increasing for a total close to $190.8 million in 2020 while expenditure activity increased by $211.9 million. This resulted in an increase in total net position for the County. Government-wide net position increased $80.4 million from 2019 to 2020. Government-wide unrestricted net position increased $36.3 million in 2020 which increases the County’s ability to support short term operating costs or to fund capital improvement projects. Of the total net position of $2.04 billion for 2020, approximately $1.47 billion (72.1%) is related to governmental activities, with $570.6 million (27.9%) in business-type activities. Implementation of the Washington State Public Employee Benefits Board (PEBB) health and dental benefits plan in 2020 resulted in a change in benefit terms for the County. The subsidies provided by PEBB include an explicit medical subsidy, and implicit medical and dental subsidies for retirees. This change in benefit terms impacted the overall liabilities and deferred outflows of the government wide financial statements.
7
STATEMENT OF ACTIVITIES
The following is a summary of the changes in net position from the statement of activities: Government-Wide Financial Analysis Condensed Statement of Activities (In Thousands) Governmental Business-Type Activities Activities Total 2020 2019 2020 2019 2020 2019 Program Revenues: Charges for Services $ 143,203 $ 143,865 $ 91,247 $ 90,664 $ 234,450 $ 234,529 Operating Grants and Contributions 293,020 116,486 3,138 3,152 296,159 119,638 Capital Grants and Contributions 30,505 9,645 18,039 41,650 48,544 51,295 General Revenues: - - - Taxes 390,675 370,130 - - 390,675 370,130 Earnings1 2,793 16,346 1,339 1,235 14,132 17,581 Other General Revenue - - 11 - 11 - Total Revenues 870,197 656,472 113,775 136,701 983,971 793,173 Expenses: General Government 41,121 29,022 - - 41,121 29,022 Public Safety 271,575 188,307 - - 271,575 188,307 Utilities 13,549 13,836 - - 13,549 13,836 Transportation 69,736 78,590 - - 69,736 78,590 Legal and Judicial 92,716 92,239 - - 92,716 92,239 Economic Environment 94,335 42,725 - - 94,335 42,725 Social Services 143,768 69,586 - - 143,768 69,586 Culture and Recreation 15,296 15,341 - - 15,296 15,341 Interest on Long-Term Debt 3,017 3,663 - - 3,017 3,663 Sewer Utility - - 91,031 87,770 91,031 87,770 Chambers Creek Regional Park - - 7,928 8,718 7,928 8,718 Solid Waste Mgmt and Landfill Reserve - - 4,344 4,364 4,344 4,364 Airport - - 2,477 3,196 2,477 3,196 Ferry Services - - 5,713 7,408 5,713 7,408 Golf Course - - 1,794 1,777 1,794 1,777 Total Expenses 745,113 533,308 113,288 113,232 858,401 646,540 Change in Net Position Before Transfers 125,083 123,164 487 23,469 125,573 146,633 Special Item (40,918) - (4,289) - (45,206) - Transfers (1,104) (675) 1,104 675 - - Change in Net Position 83,061 122,489 (2,697) 24,144 80,367 146,633 Net Position - Beginning of Year 1,388,559 1,267,497 573,316 549,169 1,961,875 1,816,666 Prior Period Adjustment - (1,427) - - - (1,427)
Net Position - End of Year $ 1,471,620 $ 1,388,559 $ 570,619 $ 573,313 $ 2,042,242 $ 1,961,872
8
Financial Highlights
Total government-wide expenses for 2020 were approximately $858.4 million, consisting of $745.1 million (86.8%) in governmental activities and $113.2 million (13.2%) for business-type activities. The total 2020 net position increased 4.1% or $80.4 million driven by current year growth in revenues over expenditures – primarily from governmental activities where total revenues increased, largely from general fund activities. Total revenues for all activities in 2020 were $984.0 million compared with $793.2 million in 2019 for an increase of 24.1% or $190.8 million. Sales and property tax revenues continued to perform well in 2020. The most significant program revenue increase was in Operating Grants & Contributions, increasing in 2020 by $176.5 million, this is almost entirely attributed to receiving $157.9 million in the COVID-19 Relief Fund. Governmental activities received program revenues of $466.7 million (53.6% of the total from general revenues that resulted in 46.4% which is along the lines of 58.9% in 2019). Business-type activities generated program revenues of approximately $112.4 million in 2020 to fund 98.8% of related expenses, compared with $135.5 million that funded, 99.1% in 2019. Governmental activity programs receiving majority of general revenue support were public safety and the legal and judicial system at $364.3 million, but due to COVID-19 Cares Act spending in Economic Environment and Social Services had substantial increases.
9
FINANCIAL ANALYSIS OF MAJOR COUNTY FUNDS
GENERAL FUND
The General Fund is budgeted separately to provide budgetary control and comparability over time. Comparisons and highlights of 2020 General Fund revenues, expenditures, and fund balance to current budgets and prior results are presented below.
Revenues. The General Fund receives unrestricted County revenue that supports activities such as law enforcement, detention facilities, the judicial system, parks, recreation programs, various human and health services, and general government. Tax revenue and all other sources for the General Fund totaled $478.4 million in 2020 – a 38.9% increase over 2019. Specific changes from 2019 include:
General Fund Summary of Revenues and Other Financing Sources (In Thousands) Increase Amount (Decrease) Category 2020 2019 Amount Percent Revenue: Property Taxes $ 146,919 $ 142,773 $ 4,145 2.9 % Sales And Use Taxes 102,639 95,072 7,567 8.0 % Excise And Other Taxes 814 896 (82) (9.1) % Licenses And Permits 5,418 5,495 (77) (1.4) % Intergovernmental Revenues 32,253 23,710 8,542 36.0 % Charges For Services 43,690 47,201 ( 3,510) (7.4) % Fines And Forfeits 3,480 4,232 (753) (17.8) % Interest 11,860 15,201 ( 3,341) (22.0) % Miscellaneous 3,927 5,037 ( 1,110) (22.0) % Total Revenue 351,000 339,617 11,382 3.4 % Other Financing Sources 127,397 4,740 122,657 2,587.7 % Total Funding Sources $ 478,396 $ 344,357 $ 134,039 38.9 %
Total General Fund revenue sources were 38.9% greater in 2020 than in 2019. The most significant of these were:
Property Taxes. 42% of total revenues are from property taxes with an increase of $4.1 million of the $11.4 million total increase from 2019 to 2020 from underlying statutorily limited annual growth and recognition of new construction. Sales Tax. 29.2% of total revenues are from sales tax revenue that grew by $7.6 million out of the $11.4 million total from 2019 to 2020. Intergovernmental Revenues. 9.2% of total revenues are from intergovernmental revenues increased by $8.5 million from 2019 to 2020. Charges for Services. 12.5% of total revenues are from charges for services that decreased by $3.5 million from 2019 to 2020 primarily due to prior year election services that are only provided in odd years. These election costs are reimbursed by special purpose districts. Other Financing Sources. Increased $122.7 million which are the result of receiving funding from COVID-19 Relief Fund for economic relief for businesses, essential government services and the public health response to the pandemic.
10
Expenditures. During 2020, General Fund expenditures and transfers out totaled $450 million, an increase of $128.2 million from 2019. Transfers are classified into related functional areas and are included in the comparison of expenditures.
Comparisons of expenditures for the last two years are as follows:
General Fund Summary of Expenditures and Transfers Out (In Thousands) Increase Amount (Decrease) Functional Area 2020 2019 Amount Percent
General Government$ 41,968 $ 38,475 $ 3,493 9.1 % Public Safety 209,277 158,067 51,209 32.4 % Utilities 142 124 18 14.9 % Legal And Judicial 97,405 97,883 (478) (0.5) % Transportation 308 288 21 7.2 % Economic Environment 52,216 9,446 42,771 452.8 % Social Services 39,850 8,221 31,628 384.7 % Culture And Recreation 8,826 9,297 (471) (5.1) % Other Financing Uses 3 2 1 - % Total Expenditures and Transfers Out (Budget Basis) $ 449,996 $ 321,804 $ 128,192 39.8 %
Total General Fund expenditures increased by 39.8% in 2020 over 2019. The most significant of these increases were:
Public Safety. 46.5% of total expenditures were spent supporting public safety functional programs. This increase was $51.2 million of the $128.2 million total expenditure increase from 2019 to 2020 as the County continued to respond to public demands and population growth- driven needs for law enforcement services. In 2020 the majority of the increase was for COVID- 19 public health response efforts. Economic Environment. 11.6% of total expenditures were spent supporting economic functional programs. This increase was $42.8 million driven by assistance to small businesses for COVID-19 response. Social Services. 8.9% of total expenditures were spent supporting social services functional programs. This increase was $31.6 million driven by rental assistance programs and homelessness for COVID-19 response.
The 2020 “bottom-line" fiscal result for the General Fund produced a $28.4 million increase in fund balance as summarized below.
General Fund Summary of Changes in Fund Balance (In Thousands) 2020 2019
Revenues $ 351,000 $ 339,617 Expenditures 442,835 309,229 Excess of Revenues Over Expenditures (91,836) 30,388 Other Financing Sources (Uses), Net 120,236 (7,835) Changes in Fund Balance (Budget Basis) $ 28,400 $ 22,553
11
General Fund Balance. The County’s financial policy is to maintain a substantial fund balance throughout the year to provide sufficient liquidity until receipt of first half property tax payments at the end of April. The fund balance also provides a reserve for emergency expenditures, and allows for longer term planning for subsequent budgets. As of December 31, 2020, there were no significant availability limitations placed on the fund balance for such purposes.
As revenues rebounded from property taxes and sales tax in 2020, delinquent property tax payments decreased to pre-recessionary levels and interest payments increased indicators of a healthy economy and financial system. Though increases in revenue have allowed the County to make targeted investments to address higher priority needs, attention has been given to ensuring that County revenues will support ongoing expenditures in the future.
The budget basis General Fund unassigned fund balance was $108.7 million as of December 31, 2019 and increased by $28.0 million to $136.7 million as of December 31, 2020 to yield a 2020 operating surplus of $28.4 million.
Budget Comparisons. The original 2020 – 2021 Biennial General Fund budget approved by the County Council totaled $730.3 million for expenditures and transfers out. That budget was increased to $859.3 million after the Council’s adoption of a supplemental budget requested by the Executive. The main purpose of the increase was due to the Federal COVID-19 Relief Act money received mid-year.
The details of 2020 budget revisions for revenues and transfers-in are:
General Fund Summary of Budget Revisions for Revenue and Other Resources (In Thousands) 2020 Excise and Other Taxes $ 1,420 Intergovernmental Revenues 1,663 Charges For Services (51) Miscellaneous Revenue 1,032 Other Financing Sources 124,313 Budget Revisions for Revenue and Other Resources$ 128,377
The revenue adjustments that support a corresponding change in the budget for expenditures and transfers-out are summarized: General Fund Summary of Budget Revisions for Expenditures and Transfers Out (In Thousands) 2020 General Government $ 10,735 Legal and Judicial 490 Public Safety 32,297 Transportation 145 Natural And Economic Environment 46,180 Social Services Activities 37,069 Culture And Recreation (877) Budget Revisions for Expenditures and Transfers Out$ 126,039
12
COVID-19 RELIEF FUND
The COVID-19 Relief Fund is funded by non-grant assistance appropriated by the Federal Government to State and Local governments in response to the global coronavirus pandemic. The 2020 expenditures total $155.4 million in line with reflief activities as outlined under the Federal CARES Act.
The following is a comparison of all revenue and expenditures (including other sources and uses).
COVID-19 Relief Fund Summary of Revenues and Expenditures (In Thousands) 2020 2019 Revenues/Sources $ 158,161 $ - Expenditures/Uses 155,379 - Revenues/Sources Over (Under) Expenditures/Uses 2,782 - Fund Balance - Beginning of Year - - Fund Balance - End of Year $ 2,782 $ -
The remaining relief proceeds in the COVID-19 Relief Fund were expended for public health and safety and economic relief in early 2021 and therefore the fund will be closed after 2021.
ROADS SPECIAL REVENUE FUND
The Roads Fund finances road maintenance, traffic control, engineering, and general administrative activities for all County roads and bridges. The Roads Fund also allocates funding to support major road construction and transportation building projects. The 2020 expenditures for all activities total $76.9 million supported primarily by property taxes ($60.7 million) and state gasoline tax revenues ($9.7 million).
The following is a comparison of all revenue and expenditures (including other sources and uses).
Roads Special Revenue Fund Summary of Revenues and Expenditures (In Thousands) 2020 2019 Revenues/Sources $ 77,023 $ 76,705 Expenditures/Uses 76,870 77,770 Revenues/Sources Over (Under) Expenditures/Uses 153 (1,066) Fund Balance - Beginning of Year 15,495 16,560 Fund Balance - End of Year $ 15,647 $ 15,495
The fund balance maintained in the Roads Fund in recent years resulted from increased tax collections and comparatively level expenditures. Fund balance will be applied in future years to road maintenance, and capital projects.
13
SEWER UTILITY FUND
The Sewer Utility Fund is by far the largest County Enterprise Fund, serving over 68,345 commercial and residential accounts that pay service charges. Secondary sources of operating revenue are permit and plan review fees and other billings.
The chart below compares the Sewer Utility Fund net position for 2020 with 2019: Sewer Utility Summary of Net Position (In Thousands) Amount Increase / (Decrease)
2020 2019 Amount Percent Current Unrestricted and Other Assets $ 60,245 $ 62,014 $ (1,768) (2.9) % Restricted Assets 18,780 31,948 (13,168) - % Capital Assets 750,724 753,482 (2,758) (0.4) % Total Assets 829,750 847,444 (17,694) (2.1) %
Deferred Outflows of Resources 2,204 1,577 627 - % Current Unrestricted and Restricted Liabilities 18,036 21,387 (3,350) (15.7) % Long-Term Unrestricted and Restricted Liabiliites 312,270 322,716 (10,446) (3.2) % Total Liabilities 330,306 344,103 (13,796) (18.9) % Deferred Inflows of Resources 8,118 2,844 5,274 - % Net Position: Net Investment in Capital Assets 433,456 427,387 6,069 1.4 % Restricted 18,780 31,948 (13,168) (41.2) % Unrestricted 41,293 42,739 (1,446) (3.4) % Total Net Position $ 493,529 $ 502,074 $ (8,545) (1.7) %
A comparison of results of operations for the Sewer Utility Fund for 2020 to 2019 are: Sewer Utility Summary of Revenues, Expenses, and Changes in Net Position (In Thousands) Amount Increase / (Decrease) 2020 2019 Amount Percent
Operating Revenues $ 67,618 $ 70,709 $ (3,091) (4.4) % Nonoperating Revenues 2,429 1,913 516 27.0 % Total Revenues 70,047 72,622 (2,575) (3.5) % Operating Expenses 36,078 34,331 1,747 5.1 % Depreciation 29,127 41,541 (12,414) (29.9) % Nonoperating Expenses 25,556 12,227 13,329 109.0 % Total Expenses 90,761 88,099 2,662 3.0 % Income Before Transfers and Contributions (20,714) (15,477) (5,237) 33.8 % Transfers (Net) (2,309) (2,556) 248 (9.7) % Special Item (3,562) - (3,562) - % Capital Contributions 18,039 41,650 (23,611) (56.7) % Change in Net Position (8,545) 23,617 (32,162) (136.2) % Beginning Net Position 502,074 478,457 23,617 4.9 % Prior Period Adjustment - - - N/A % Ending Net Position $ 493,529 $ 502,074 $ (8,545) (1.7) %
14
Financial Highlights
Total assets at year-end are $829.8 million with liabilities of $330.3 million for a net position of $493.5 million, a decrease of $8.5 million or 1.7%. Of the total net position at year-end, $41.3 million is unrestricted and available to support short- term operations or to fund capital improvement projects. The $4.9 million net reduction in ending position resulted from a combination of temporarily foregoing penalties and interest due to the COVID pandemic, a bond refunding that included expenditure of debt service reserve funds to pay down debt, and somewhat slower than usual construction activity during 2020 due to the COVID pandemic.
NONMAJOR SPECIAL REVENUE FUNDS (COMBINED)
The Nonmajor Special Revenue Funds (47 funds) reported the following results for 2020 and 2019: Nonmajor Special Revenue Funds Summary of Combined Revenues, Expenses and Changes in Fund Balance (In Thousands) 2020 2019 Combined Revenues $ 244,509 $ 220,762 Combined Expenditures 192,025 151,623 Excess Revenues Over Expenditures 52,483 69,139 Combined Other Sources (Uses), Net (28,885) (44,693) Change in Fund Balance 23,598 24,446 Fund Balance - Beginning of Year 126,454 103,436 Prior Period Adjustment - (1,427) Fund Balance - End of Year $ 150,052 $ 126,454
Fund balance for these non-major funds increased in 2020 as revenues grew $23.7 million or 10.8% while expenses increased by $40.4 million or 26.6%. Combined other uses decreased in 2020 by $15.8 or 35.4% as a result of additional transfers in received to support CARES Act Programs and COVID-19 relief. The net 2020 fund balance increased $23.6 million or 18.7% from 2019.
15
INTERNAL SERVICE FUNDS
Internal Service Funds are designed to collect sufficient revenues and capital transfers to cover their operating expenses. Internal Service Funds Summary of Revenues, Expenses, and Changes in Net Position (In Thousands) 2020 2019 Operating Revenues $ 90,332 $ 103,665 Operating Expenses 93,048 99,900 Operating Income (Loss) (2,716) 3,765 Nonoperating Revenues and Net Transfers 338 8,339 Change in Net Position (2,378) 12,104 Beginning Net Position 160,627 148,523 Ending Net Position $ 158,249 $ 160,627
Total net position was $158.2 million as of December 31, 2020 compared to $160.6 million at year-end 2019, respectively. The 2020 net operating results for Internal Service Funds decreased $2.4 million or 1.5%. Changes in the Internal Service Funds were:
Equipment Services Division. Total net income had minimal change at $0.8 million. Information Technology Division. Total operating income was $1.6 million which increased from operating income in prior year by $0.4 million. Facilities Management. Total operating expenses exceeded revenues resulting in an operating loss of $1.4 million. The fund did have transfer activity that reduced the loss and provided overall gain. This resulted in a change in net position of $1.8 million. Radio Communications. Total operating expenses exceeded revenues resulting in operating loss of $1.3 million, which was mostly offset by transfers in of $0.9 million. Fleet Rental Services. Total operating loss was $0.01 million with transfers in of $0.5 million that resulted in a change in net position of $0.5 million. General Services. Total operating gain was $0.2 million with combined activity resulted in nearly break even change in Net Position with minor decrease to net position of $0.1 million. Self-Insurance. Total net income was $1.3 million and after combined other financing activities resulted in change in net position of $1.1 million. Worker’s Compensation. Total operating expenses exceeded revenues resulting in an operating loss of $3.0 million, this carries through to a change in its net position. Medical Self Insurance. The operating loss was $0.5 million which carries through to the change in net position. This is expected as this fund will be closed out since the County transitioned to State Public Employee Benefit Board (PEBB) in 2020.
16
CAPITAL ASSET ACTIVITY
The County investment in capital assets for governmental and business-type activities totals $2.1 billion as of December 31, 2020. Capital assets include land, infrastructure, buildings and other improvements, furnishings, and equipment, as well as construction in progress. Additional information on County capital assets can be found in Note 8 to the financial statements.
Total capital assets for the County increased $44.8 million in 2020 from the previous year. Summary of Capital Asset Activity (In Thousands)
Governmental Activities Business-Type Activities Asset 2020 Ending Asset 2020 Ending Asset Classification Changes Values Changes Values
Land and Land Rights$ 7,560 $ 303,628 -$ $ 57,791 Infrastructure and Other Improvements 24,316 820,792 12,737 781,728 Building and Systems 6,688 268,178 834 247,499 Machinery and Equipment (638) 176,554 633 149,664 Intangible Assets 3,434 14,639 - 4,718 Accumulated Depreciation (21,852) (432,493) (32,023) (440,046) Capital Assets, Net 19,508 1,151,298 (17,819) 801,354 Construction In Progress 30,610 92,615 12,456 18,032
Total Capital Assets, Net $ 50,118 $ 1,243,913 $ (5,363) $ 819,386
HIGHLIGHTS OF CAPITAL ASSET ACTIVITY
Governmental Activities:
Capital assets for governmental activities experienced a $50.1 million net increase. This was primarily due to an increase in construction project costs.
Business-Type Activities:
Capital assets for business-type activities had a net decrease of $5.4 million due to developer contributions reduced by depreciation expense.
17
DEBT ADMINISTRATION
The ratios of net direct tax supported bonded debt to assessed valuation and to population (per capita) present useful indicators of relative debt burden of the county. Additional information on county debt can be found in Note 9 to the financial statements.
A summary of outstanding debt is presented below:
Summary of Outstanding Debt (In Thousands) Governmental Business-Type Activities Activities Total 2020 2019 2020 2019 2020 2019 General Obligation Bonds$ 119,990 $ 135,980 $ 13,135 $ 13,735 $ 133,125 $ 149,715 Sewer Revenue Bonds - - 248,350 263,225 248,350 263,225 Installment Contracts 3,626 4,025 56,791 59,955 60,417 63,979 Total Debt $ 123,616 $ 140,005 $ 318,276 $ 336,915 $ 441,892 $ 476,919
During 2020, total outstanding County debt decreased $16.4 million. This decrease is due to debt payments and bond refunding during the fiscal period. The County refunded $196 million in Business- Type Revenue bonds for $189 million in new bonds with reduction in required reserves of $14 million.
Moody’s Investor Service bond ratings are Aa1 for the General Obligation bonds and Aa2 for Sewer Revenue bonds. Standard & Poor’s ratings are AA+ for the General Obligation bonds and Sewer Revenue bonds. These ratings are comparatively high for a county and indicate to investors that Pierce County bonds are a good investment risk. Additional information on County long-term debt can be found in Note 9 to the financial statements.
REQUEST FOR INFORMATION
This financial report is designed to provide various interested parties with a general overview of Pierce County finances and to show accountability of the County for the money it receives. Questions concerning the information provided in this report or requests for additional financial information should be addressed to Pierce County Finance Department, 950 Fawcett Avenue, Suite 100, Tacoma, Washington, 98402.
18 Statement Of Net Position As of December 31, 2020 (In Thousands) Page 1 of 2 Governmental Business - Activities Type Activities Total ASSETS Cash And Cash Equivalents $ 241,442 $ 9,550 $ 250,992 Cash With Trustee 229 615 844 Investments 271,030 59,389 330,419 Receivables, Net 44,641 9,451 54,092 Internal Balances (4,022) 4,022 - Due From Other Governments 43,505 520 44,025 Inventory, At Cost 3,457 1,802 5,258 Prepaid Items 1,799 46 1,845 Restricted Assets Cash And Cash Equivalents 3 2,219 2,223 Investments - 22,859 22,859 Landfill Closure Receivable - 849 849 Pension Asset 25,299 - 25,299 Nondepreciable Capital Assets Land And Land Rights 303,628 57,791 361,419 Construction In Progress 92,615 18,032 110,647 Depreciable Capital Assets, Net Of Accumulated Depreciation Infrastructure And Other Improvements 619,764 479,397 1,099,161 Buildings and Systems 146,600 183,027 329,627 Machinery And Equipment 72,168 79,852 152,020 Intangible Assets 9,135 1,287 10,422 TOTAL ASSETS 1,871,293 930,707 2,802,000
DEFERRED OUTFLOWS OF RESOURCES Pension Deferred Outflow 28,294 2,057 30,351 Deferred Loss On Refunding 324 164 488
Other Post Employment Benefits Deferred Outflows 5,011 506 5,517 TOTAL DEFERRED OUTFLOWS OF RESOURCES 33,629 2,726 36,355
See Accompanying Notes to Financial Statements
19 Statement Of Net Position As of December 31, 2020 (In Thousands) Page 2 of 2 Governmental Business - Activities Type Activities Total LIABILITIES Vouchers And Accounts Payable 42,726 4,348 47,074 Due To Other Governments 10,510 1,472 11,982 Accrued Wages And Benefits Payable 4,932 325 5,257 Accrued Interest Payable 2,283 1,936 4,219 Other Accrued Liabilities 16,780 1,497 18,277 Unearned Revenues 3,650 1,042 4,692 Noncurrent Liabilities Due Within One Year 23,034 10,860 33,894 Due In More Than One Year 300,796 332,694 633,490 TOTAL LIABILITIES 404,711 354,174 758,885
DEFERRED INFLOWS OF RESOURCES Pension Deferred Inflow 28,591 2,172 30,763 Deferred Gain on Refunding - 6,468 6,468 TOTAL DEFERRED INFLOWS OF RESOURCES 28,591 8,640 37,231
NET POSITION Net Investment In Capital Assets 1,109,160 486,858 1,596,018 Restricted For: Capital Projects 99,696 16,260 115,956 Human Services 9,249 - 9,249 Debt Service 7,707 2,520 10,227 Physical Environment 27,373 - 27,373 Public Safety 7,706 - 7,706 Culture & Recreation 4,774 - 4,774 Transportation 27,130 - 27,130 Economic Environment 6,723 - 6,723 Pension 25,299 - 25,299 Other Purposes - 3,697 3,697 Unrestricted 146,803 61,284 208,087
TOTAL NET POSITION $ 1,471,620 $ 570,619 $ 2,042,239
See Accompanying Notes to Financial Statements
20 Statement Of Activities For the Year Ended December 31, 2020 (In Thousands) Net Revenue (Expense) Program Revenues and Changes In Net Position Operating Capital Grants Business- Charges for Grants and and Governmental Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities General Government $ 41,121 $ 18,516 $ 168,525 $ 11,196 $ 157,116 $ - $ 157,116 Public Safety 271,575 25,565 17,281 884 (227,844) - (227,844) Utilities 13,549 30,334 1,731 - 18,516 - 18,516 Transportation 69,736 11,457 19,235 18,425 (20,619) - (20,619) Legal and Judicial 92,716 11,979 10,655 - (70,081) - (70,081) Economic Environment 94,335 21,255 5,227 - (67,853) - (67,853) Social Services 143,768 13,906 69,985 - (59,877) - (59,877) Culture and Recreation 15,296 10,191 381 - (4,725) - (4,725) Interest on Long-Term Debt 3,017 - - - (3,017) - (3,017) Total Governmental Activities 745,113 143,203 293,020 30,505 (278,384) - (278,384) Business-type Activities Sewer Utility 91,031 67,618 1,163 18,039 - (4,211) (4,211) Chambers Creek Regional Park 7,928 6,090 318 - - (1,521) (1,521) 21 Solid Waste Management and Landfill Reserve 4,344 6,626 199 - - 2,480 2,480 Airport 2,477 1,333 235 - - (909) (909) Ferry Services 5,713 7,886 1,224 - - 3,397 3,397 Golf Course 1,794 1,695 - - - (100) (100) Total Business-type Activities 113,287 91,248 3,139 18,039 - (864) (864) Total Government $ 858,400 $ 234,451 $ 296,159 $ 48,544 (278,384) (864) (279,248)
General Revenues Taxes: Property Taxes 226,739 - 226,739 Sales Taxes 138,429 - 138,429 Excise and Other Taxes 25,508 - 25,508 Unrestricted Investment Earnings 12,793 1,339 14,132 Gain on Sale of Capital Assets - 11 11 Special Item (40,918) (4,289) (45,206) Transfers (1,104) 1,104 - Total General Revenues and Transfers 361,447 (1,835) 359,613 Change in Net Position 83,063 (2,697) 80,364 Net Position Begining of Year 1,388,559 573,316 1,961,875 Net Position End of Year $ 1,471,622 $ 570,619 $ 2,042,239
See Accompanying Notes to Financial Statements Governmental Funds Balance Sheet At December 31, 2020 (In Thousands)
Other Total General COVID-19 Governmental Governmental Fund Relief Act Roads Funds Funds ASSETS Cash In Treasury Pool $ 79,264 $ 1,388 $ 8,262 $ 97,526 $ 186,440 Cash With Trustee - - - 229 229 Investments 62,712 1,394 7,991 131,986 204,082 Receivables, Net 31,863 - 1,361 5,873 39,097 Due From Other Funds 4,126 - - - 4,126 Due From Other Governments 12,198 - 297 30,695 43,189 Prepaid Items 598 - 7 4 610 TOTAL ASSETS 190,761 2,782 17,918 266,313 477,773
DEFERRED OUTFLOWS OF RESOURCES - - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS 190,761 2,782 17,918 266,313 477,773
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers And Accounts Payable 20,264 - 368 18,212 38,843 Due To Other Funds - - - 4,126 4,126 Due To Other Governments 3,995 - 24 6,205 10,223 Accrued Wages And Benefits Payable 3,204 - 473 827 4,503 Unearned Revenues 1,759 - - 1,891 3,650 Interfund Loans Payable - - - 291 291 Other Liabilities 16,352 - 371 33 16,756 TOTAL LIABILITIES 45,574 - 1,236 31,585 78,392
Deferred Inflows of Resources Deferred Property Taxes 2,431 - 1,035 1,782 5,248 Unavailable Revenue - - - 259 259 Deferred Tax - Interest/Penalty 5,467 - - - 5,467 TOTAL DEFERRED INFLOWS OF RESOURCES 7,898 - 1,035 2,041 10,974
Fund Balances Nonspendable 598 - 7 4 610 Restricted - 2,782 14,160 148,140 165,083 Committed - - 1,480 57 1,537 Assigned - - - 85,476 85,476 Unassigned 136,692 - - (991) 135,701 TOTAL FUND BALANCES 137,290 2,782 15,647 232,686 388,407
TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 190,762 $ 2,782 $ 17,918 $ 266,312 $ 477,773
See Accompanying Notes to Financial Statements
22 Reconciliation Of The Balance Sheet Of Governmental Funds To The Statement Of Net Position At December 31, 2020 (In Thousands)
Total Fund Balances Of Governmental Funds $ 388,407
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in governmental fund statements as follows: Capital Assets: Land and Land Rights 303,417 Construction in progress 92,263 Infrastructure and other improvements 619,585 Buildings 139,424 Machinery and equipment 26,568 Total capital assets (net of accumulated depreciation) 1,181,257
Certain receivables for county taxes and other revenues will be collected after year-end, and will not be available soon enough after year-end to pay current period expenditures. Accordingly such receivables are either reported as revenue when received or are reported as deferred revenue or deferred inflows of resources in governmental fund statements. 15,498
Certain liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in governmental fund statements as follows: Bonds Payable (119,671) Leases and installment contracts payable (4,188) Interest payable (2,283) Compensated absences (24,800) Pension-related liabilities (60,094) Other postemployment benefits (74,661) Premiums on debt issues (11,719) Discounts on debt issues 138 Total long-term liabilities (297,278)
Net pension Deferred inflow and Outflow are not available resources and, therefore, are not reported in the funds. Deferred Loss on Refunding 324 Pension Assets 25,299 Pension Deferred Outflows 25,725 OPEB Deferred Outflows 4,246 Pension Deferred Inflows (26,086)
Total net pension and OPEB deferred inflows and outflows 29,508
Internal Service Funds are used to charge individual funds for the cost of certain activities such as equipment and vehicle rental, information services, facilities management, radio communications, general services, self insurance and workers compensation. The statement of net position includes assets, liabilities, and net position of Internal Service Funds in governmental activities, net of amounts allocated to Business-type activities. 158,249
Amounts allocated to Business-type activities. (4,022)
Net Position Of Governmental Activities $ 1,471,619
See Accompanying Notes to Financial Statements
23 Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 (In Thousands)
Other Total General COVID-19 Governmental Governmental Fund Relief Act Roads Funds Funds REVENUES Property Taxes $ 146,919 $ - $ 60,667 $ 20,172 $ 227,758 Sales And Use Taxes 102,639 - - 36,035 138,674 Excise And Other Taxes 814 - 283 24,166 25,263 Licenses And Permits 5,418 - 289 15,501 21,208 Intergovernmental Revenues 32,253 157,912 11,639 89,390 291,194 Charges For Services 43,690 - 1,904 65,846 111,440 Fines And Forfeits 3,480 - - 3 3,483 Interest 11,860 249 - 522 12,631 Miscellaneous 3,927 - 519 2,866 7,312 Capital Contributions - - - 884 884 TOTAL REVENUES 351,000 158,161 75,301 255,385 839,847
EXPENDITURES Current: General Government 38,392 - 2 1,075 39,469 Public Safety 206,865 - 561 25,669 233,095 Utilities 102 - 3 10,426 10,531 Legal And Judicial 97,158 - - 431 97,589 Transportation - - 57,407 712 58,119 Economic Environment 52,029 - 36 40,840 92,905 Social Services 37,986 - - 106,911 144,897 Culture And Recreation 8,051 - - 4,132 12,183 Capital Projects: General Government 354 - - 8,224 8,578 Public Safety 1,050 - - 30,183 31,233 Utilities - - - 6,653 6,653 Legal And Judicial 172 - - - 172 Transportation - - 49 26,497 26,546 Economic Environment - - - 2,132 2,132 Social Services 107 - - 5,854 5,961 Culture And Recreation 566 - - 7,855 8,421 Debt Service: Principal Retirement - - - 14,719 14,719 Interest And Fiscal Charges - - - 5,397 5,397 Bond Issuance Costs 3 - - 138 141 TOTAL EXPENDITURES 442,835 - 58,058 297,848 798,741
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (91,835) 158,161 17,243 (42,463) 41,106
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - 1,314 (4) 1,310 Transfer In 127,397 - 408 114,308 242,113 Transfer Out (7,161) (155,379) (18,812) (68,160) (249,512)
Payment to Refunded Bonds Escrow - - - (13,261) (13,261) Refunding Bonds Issued - - - 11,380 11,380 Premiums on Debt Issued - - - 2,020 2,020 TOTAL OTHER FINANCING SOURCES (USES) 120,236 (155,379) (17,090) 46,283 (5,950)
NET CHANGE IN FUND BALANCE 28,401 2,782 153 3,820 35,156 FUND BALANCE - Beginning Of Year 108,891 - 15,495 228,866 353,252 FUND BALANCE - End Of Year $ 137,292 $ 2,782 $ 15,648 $ 232,686 $ 388,408
See Accompanying Notes to Financial Statements
24 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, 2020 (In Thousands)
Net Changes in Fund Balances - Total Governmental Funds $ 35,156
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays in governmental fund statements exceeded depreciation for the current period. 19,473
Certain portions of county taxes and other revenue that do not provide current financial are either reported as revenue when received or reported as deferred revenues or deferred inflows of resources in governmental fund statements, but recognized currently as revenue in government-wide statements. Current year changes in such revenues are included as a change of net position in the statement of activities. 27,246
Governmental funds report the issuance of long-term debt; the repayment of the principal on long-term debt; and related items occurring when debt is first issued (such as premiums and/or discounts) as increases or decreases in total governmental fund balances. Issuing and repaying long-term debt has no effect on government-wide net position. Further, the related debt issuance items are deferred and amortized in the statement of activities. This amount represents the net effect of such differences in the treatment of long-term debt and related items. 17,175
Changes in certain accrued assets and liabilities are included in the statement of activities. Such changes do not require the use of current financial resources and, therefore, are not included in the change in governmental fund balances. (20,441)
Internal Service Funds are used by management to charge the costs of certain activities to individual funds. The effect of net revenues (expenses) of such activity is not included in the change in governmental fund balances. 4,452
Change in Net Position of Governmental Activities $ 83,061
See Accompanying Notes to Financial Statements
25 General Fund Statement of Revenues, Expenditures And Changes in Fund Balance Budget (GAAP Basis) And Actual For the Year Ending: December 31, 2020 (In Thousands) Variance with Final Budget Budget Positive Original Final Actual (Negative) REVENUES Property Taxes $ 295,719 $ 295,719 $ 146,919 $ (148,800) Sales And Use Taxes 196,785 198,205 102,639 (95,566) Excise And Other Taxes 1,400 1,400 814 (586) Licenses And Permits 11,319 11,319 5,418 (5,901) Intergovernmental Revenues 46,743 48,407 32,253 (16,154) Charges For Services 111,457 111,406 43,690 (67,716) Fines And Forfeits 7,570 7,670 3,480 (4,190) Interest 20,797 20,797 11,860 (8,937) Miscellaneous 5,716 6,748 3,927 (2,821) Capital Contributions - - - - TOTAL REVENUES 697,506 701,671 351,000 (350,671)
EXPENDITURES Current: General Government 97,035 105,336 38,392 66,944 Public Safety 352,234 382,978 206,865 176,113 Utilities 304 304 102 202 Legal And Judicial 199,882 200,079 97,158 102,921 Transportation - - - - Economic Environment 21,399 67,423 52,029 15,394 Social Services 15,910 51,296 37,986 13,310 Culture And Recreation 20,227 19,114 8,051 11,063 Capital Projects: General Government 41 399 354 45 Public Safety 145 1,399 1,050 349 Legal And Judicial - 292 172 120 Social Services - 1,323 107 1,216 Culture And Recreation - 203 566 (363) Debt Service: Bond Issuance Costs 8 8 3 5 TOTAL EXPENDITURES 707,185 830,154 442,835 387,319
EXCESS OF REVENUES OVER EXPENDITURES (9,679) (128,483) (91,835) 36,648
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets 8,510 8,510 - (8,510) Transfer In 15,805 140,118 127,397 (12,721) Transfer Out (23,104) (26,175) (7,161) 19,014 Total Other Financing Sources (Uses) 1,211 122,453 120,236 (2,217) NET CHANGE IN FUND BALANCE $ (8,468) $ (6,030) 28,401 $ 34,431
FUND BALANCE - Beginning Of Year 108,891
FUND BALANCE - End Of Year $ 137,292
See Accompanying Notes to Financial Statements
26 COVID-19 Relief Act Special Revenue Fund Statement of Revenues, Expenditures And Changes in Fund Balance Budget (GAAP Basis) And Actual For the Year Ending: December 31, 2020 (In Thousands) Variance with Final Budget Budget Positive Original Final Actual (Negative) REVENUES Intergovernmental Revenues $ - $ 157,912 $ 157,912 $ - Interest - 249 249 - TOTAL REVENUES - 158,161 158,161 -
EXPENDITURES Current: General Government - 153,272 - 153,272 TOTAL EXPENDITURES - 153,272 - 153,272
EXCESS OF REVENUES OVER EXPENDITURES - 4,889 158,161 153,272
OTHER FINANCING SOURCES (USES) Transfer Out - (4,889) (155,379) (150,490) Total Other Financing Sources (Uses) - (4,889) (155,379) (150,490) NET CHANGE IN FUND BALANCE $ - $ - 2,782 $ 2,782
FUND BALANCE - Beginning Of Year -
FUND BALANCE - End Of Year $ 2,782
See Accompanying Notes to Financial Statements
27 Roads Special Revenue Fund Statement of Revenues, Expenditures And Changes in Fund Balance Budget (GAAP Basis) And Actual For the Year Ending: December 31, 2020 (In Thousands) Variance with Final Budget Budget Positive Original Final Actual (Negative) REVENUES Property Taxes $ 123,128 $ 123,128 $ 60,667 $ (62,461) Excise And Other Taxes 570 570 283 (287) Licenses And Permits 470 470 289 (181) Intergovernmental Revenues 38,023 38,125 11,639 (26,486) Charges For Services 4,302 4,302 1,904 (2,398) Miscellaneous 1,460 1,460 519 (941) TOTAL REVENUES 167,953 168,055 75,301 (92,754)
EXPENDITURES Current: General Government - - 2 (2) Public Safety - - 561 (561) Utilities - - 3 (3) Transportation 134,081 133,926 57,407 76,519 Economic Environment 1 1 36 (35) Capital Projects: Transportation 778 778 49 729 TOTAL EXPENDITURES 134,860 134,705 58,058 76,647
EXCESS OF REVENUES OVER EXPENDITURES 33,093 33,350 17,243 (16,107)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - 1,400 1,314 (86) Transfer In 709 2,628 408 (2,220) Transfer Out (34,689) (34,018) (18,812) 15,206 Total Other Financing Sources (Uses) (33,980) (29,990) (17,090) 12,900 NET CHANGE IN FUND BALANCE $ (887) $ 3,360 153 $ (3,207)
FUND BALANCE - Beginning Of Year 15,495
FUND BALANCE - End Of Year $ 15,648
See Accompanying Notes to Financial Statements
28 Proprietary Funds Statement of Net Position As of December 31, 2020 (In Thousands) Page 1 of 3
Governmental Other Activities - Enterprise Internal Service Sewer Utility Funds Total Funds ASSETS Current Assets Unrestricted Cash In Treasury Pool$ 3,649 $ 5,901 $ 9,550 $ 55,002 Cash With Trustees - 615 615 - Investments 46,007 13,382 59,389 66,948 Receivables, Net 8,539 912 9,451 1,021 Due From Other Governments 469 51 520 315 Interfund Loans Receivable - - - 291 Inventory At Cost 1,580 221 1,801 3,457 Prepaid Expense 1 45 46 1,189 Restricted Cash In Treasury Pool 696 263 959 - Cash With Trustee 1,259 - 1,259 3 Investments 16,824 6,034 22,858 - Total Current Assets 79,024 27,424 106,448 128,226
Noncurrent Assets Restricted Landfill Postclosure Charges - 849 849 - Total Noncurrent Restricted Assets - 849 849 - Capital Assets Land And Land Rights 47,656 10,135 57,791 211 Construction Work In Progress 17,698 334 18,032 351 Infrastructure and Other Improvements 725,114 56,613 781,727 303 Buildings and Systems 236,342 11,158 247,500 10,160 Machinery and Equipment 113,331 36,333 149,664 102,055 Intangible Assets 4,156 562 4,718 14,639 Accumulated Depreciation (393,572) (46,474) (440,046) (65,066) Total Capital Assets, Net 750,725 68,661 819,386 62,653 Total Noncurrent Assets 750,725 69,510 820,235 62,653 TOTAL ASSETS 829,749 96,934 926,683 190,879
DEFERRED OUTFLOW OF RESOURCES Deferred Loss On Refunding 164 - 164 - Pension Deferred Outflow 1,620 437 2,057 2,569 Other Post Employment Benefits Deferred Outflows 420 86 506 765 TOTAL DEFERRED OUTFLOW OF RESOURCES $ 2,204 $ 522 $ 2,726 $ 3,334
See Accompanying Notes to Financial Statements
29 Proprietary Funds Statement of Net Position As of December 31, 2020 (In Thousands) Page 2 of 3
Governmental Other Activities - Enterprise Internal Service Sewer Utility Funds Total Funds LIABILITIES Current Liabilities Liabilities Payable From Unrestricted Assets Vouchers And Accounts Payable$ 3,519 $ 780 4,299 $ 3,883 Due To Other Governments 1,270 202 1,472 287 Accrued Wages And Benefits Payable 281 44 325 429 Compensated Absences 131 32 163 226 Other Accrued Liabilities 1,214 234 1,449 23 Installment Contracts Payable 83 378 461 - Estimated Claims Settlements, Current - - - 5,413 Unearned Revenue - 1,042 1,042 - Other Post Employment Benefits 25 5 30 45 Liabilities Payable From Restricted Assets Vouchers And Accounts Payable - 49 49 - Accrued Interest Payable 1,933 3 1,936 - Installment Contracts Payable 2,766 - 2,766 - Current Portion Of Bonds Payable 6,815 625 7,440 - Total Current Liabilities 18,036 3,395 21,432 10,306
Noncurrent Liabilities Liabilities Payable From Unrestricted Assets Compensated Absences 1,126 204 1,330 2,527 Installment Contracts Payable 330 1,133 1,463 - Estimated Claims Settlements - - - 6,144 Other Post Employment Benefits 4,128 842 4,970 7,518 Pension Obligations 5,718 1,771 7,488 6,963 Liabilities Payable From Restricted Assets Installment Contracts Payable 52,102 - 52,102 - Bonds Payable, Net Of Premium/Discount 248,867 13,123 261,990 - Landfill Postclosure Liabilities - 3,352 3,352 - Other Accrued Liabilities - 48 48 - Total Noncurrent Liabilities 312,270 20,473 332,743 23,152 TOTAL LIABILITIES 330,306 23,868 354,174 33,458
DEFERRED INFLOWS OF RESOURCES Pension Deferred Inflow 1,651 521 2,172 2,505 Deferred Gain on Refunding 6,468 - 6,468 - TOTAL DEFERRED INFLOWS OF RESOURCES 8,118 521 8,640 2,505
See Accompanying Notes to Financial Statements
30 Proprietary Funds Statement of Net Position As of December 31, 2020 (In Thousands) Page 3 of 3
Governmental Other Activities - Enterprise Internal Service Sewer Utility Funds Total Funds NET POSITION Net Investment In Capital Assets 433,456 53,402 486,858 62,653 Restricted For: Capital Projects 16,260 - 16,260 - Debt Service 2,520 - 2,520 - Reserve for Landfill Expenses - 3,697 3,697 - Other Purposes - - - 3 Unrestricted 41,293 15,969 57,262 95,593 TOTAL NET POSITION $ 493,529 $ 73,068 566,597 $ 158,249
Adjustment to reflect consolidation of Internal Service Funds Net Position of Business-type Activities 4,022 Net Position of Business-type Activities$ 570,619
See Accompanying Notes to Financial Statements
31 Proprietary Funds Statement Of Revenues, Expenses And Changes In Net Position For The Year Ended: December 31, 2020 (In Thousands)
Governmental Other Activities - Enterprise Internal Service Sewer Utility Funds Total Funds OPERATING REVENUES Charges For Services $ 67,005 $ 23,544 $ 90,549 $ 89,776 Miscellaneous 613 86 699 556 TOTAL OPERATING REVENUES 67,618 23,630 91,248 90,332
OPERATING EXPENSES Personnel Services 15,601 3,159 18,760 29,283 Materials And Supplies 2,573 578 3,151 15,544 System Support Services 17,200 14,445 31,645 23,714 Depreciation And Amortization 29,127 3,304 32,431 9,610 Recoveries 703 143 846 14,897 TOTAL OPERATING EXPENSES 65,204 21,629 86,833 93,048 OPERATING INCOME (LOSS) 2,414 2,001 4,415 (2,716)
NONOPERATING REVENUES (EXPENSE) Interest Income 1,267 72 1,339 175 Interest Expense (25,512) (464) (25,976) - Operating Grants 1,163 1,975 3,138 - Gain (Loss) On Disposal Of Capital Assets (44) (80) (124) 356 TOTAL NONOPERATING REVENUES (EXPENSES) (23,126) 1,503 (21,623) 531
NET INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (20,712) 3,504 (17,208) (2,185)
Capital Contributions 18,039 - 18,039 - Special Item (3,562) (727) (4,289) (6,488) Transfers In 881 4,638 5,519 6,821 Transfers Out (3,189) (1,225) (4,414) (526) CHANGE IN NET POSITION (8,543) 6,190 (2,353) (2,378) NET POSITION - Beginning of Year 502,074 66,878 160,627 NET POSITION - End Of Year $ 493,531 $ 73,068 $ 158,249
Adjustment to reflect consolidation of Internal Service Fund activities related to Enterprise Funds (343) Change in net position of Business-type activities per Statement of Activities $ (2,697)
See Accompanying Notes to Financial Statements 32 Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 1 of 2 Governmental Other Activities - Enterprise Internal Service Sewer Utility Funds Total Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers $ 69,421 $ 23,623 $ 93,044 $ 20,399 Receipts from Interfund Services 55 132 187 69,813 Payments to Suppliers and Service Providers ( 17,921) ( 15,335) ( 33,256) ( 38,501) Payments to Employees - Services and Benefits ( 17,250) ( 3,443) ( 20,693) ( 32,141) Payments to Other Funds - Interfund Services Used - (30) (30) - Cash Paid for Claims and Insurance ( 703) ( 143) ( 846) ( 10,127) Cash Received for Third Party Claims Recoveries - ( 297) ( 297) - Other Payments ( 561) - ( 561) - NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 33,041 4,507 37,548 9,443 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds From Sale of Investments 45,811 349 46,160 6,019 Purchase of Investments ( 43,400) ( 4,789) ( 48,189) ( 4,303) Interest on Investments 909 72 981 49 NET CASH PROVIDED BY INVESTING ACTIVITIES 3,320 ( 4,368) ( 1,048) 1,765 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Repayment of Advances (To) From Other Funds - - - 546 Operating Grants 1,397 2,070 3,467 - Interfund Interest Income - - - 13 Transfers In 881 4,369 5,250 3,572 Transfers Out ( 3,171) ( 1,211) ( 4,382) ( 526) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (893) 5,228 4,335 3,605 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Assessment Principal, Interest and Penalties Received 18 - 18 - Proceeds From Sale of Capital Assets - 22 22 1,105 Acquisition of Capital Assets ( 15,082) ( 946) ( 16,028) ( 12,611) Proceeds From Borrowings 195,840 - 195,840 - Principal Paid on Debt ( 10,621) ( 978) ( 11,599) - Interest Paid on Debt ( 13,763) ( 596) ( 14,359) - Bond Defeasance ( 209,869) - ( 209,869) - Capital Contributions 7,985 - 7,985 - Taxes ( 292) 14 ( 278) - Landfill Closure and post-closure care - 135 135 - Transfers In For Capital Purposes - 269 269 3,249 Transfers Out For Capital Purposes ( 19) ( 14) ( 33) - NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (45,803) (2,094) (47,897) (8,257)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,335) 3,273 (7,062) 6,556 CASH - Beginning of Year CAFR 15,939 3,505 19,444 48,449 CASH - End of Year $ 5,604 $ 6,778 $ 12,382 $ 55,005
See Accompanying Notes To Financial Statements
33 Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 2 of 2 Governmental Other Activities - Enterprise Internal Service Sewer Utility Funds Total Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 2,414 $ 2,003 $ 4,417 $ ( 2,716) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities Depreciation and Amortization 29,127 3,305 32,432 9,610 Pension Expense GASB 68 ( 1,663) ( 322) ( 1,985) ( 3,178) Other Post Retirement Benefits GASB 75 170 33 203 310 Other 435 - 435 - Decrease (Increase) in Assets Receivables 1,858 328 2,186 ( 65) Due From Other Funds - - - 15 Inventory ( 27) 3 ( 24) ( 509) Prepaid Expense 3 ( 38) ( 35) 776 Increase (Decrease) In Liabilities Vouchers and Accounts Payable 1,441 ( 402) 1,039 355 Due To Other Funds - ( 30) ( 30) - Wages and Benefits Payable ( 221) ( 32) ( 253) ( 359) Compensated Absences 65 34 99 369 Other Accrued Liabilities ( 561) 5 ( 556) 33 Unearned Revenue - ( 208) ( 208) - Estimated Claims Settlements - - - 4,802 Landfill Postclosure Liabilities - ( 172) ( 172) - Total Adjustments 30,627 2,504 33,131 12,159 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 33,041 $ 4,507 $ 37,548 $ 9,443
RECONCILIATION OF CASH AT END OF YEAR TO BALANCE SHEET Cash per Statement of Net Position Cash and cash equivalents, unrestricted 3,649 5,900 9 ,549 55,002 Cash held with trustee, unrestricted - 615 615 - Cash and cash equivalents, restricted 696 263 959 - Cash held with trustee, restricted 1,259 - 1,259 3 TOTAL CASH - End of Year $ 5,604 $ 6,778 $ 12,382 $ 55,005
Schedule of Noncash Transactions Estimated Landfill Closure Receivable, Noncash - 395 395 - Interest and Fiscal Charges Expenses - 131 131 - Bad Debt Write Off, Noncash - ( 5) ( 5) ( 32) Capital Contributions, noncash - - - - Pension Expense GASB 68 Adjustments 1,663 322 1,985 3,178 Other Post Retirement Benefits GASB 75 ( 170) ( 33) ( 203) ( 310) Total Noncash Transactions $ 1,493 $ 810 $ 2,303 $ 2,836
See Accompanying Notes To Financial Statements
34 Fiduciary Funds Statement Of Fiduciary Net Position At December 31, 2020 (In Thousands) Custodial Funds Private- Other External Purpose Trust Custodial Investment Funds Funds Pool ASSETS Cash in Treasury Pool $ 895 $ 173,739 $ 9,112 Cash with Trustee 17,104 958 - Investments, At Amortized Cost - - 1,872,227 Receivables - 27,063 - Due From Other Governments - - - Other Assets - 5,235 - TOTAL ASSETS 17,999 206,995 1,881,339
DEFERRED OUTFLOWS OF RESOURCES - - -
LIABILITIES Accounts Payable And Other Liabilities - 1,224,223 - Due to Other Governments - (12) - TOTAL LIABILITIES - 1,224,211 -
DEFERRED INFLOWS OF RESOURCES - - -
NET POSITION Reserved For Specific Program Use 17,999 (1,017,216) 1,881,339 TOTAL NET POSITION $ 17,999 $ (1,017,216) $ 1,881,339
See Accompanying Notes To Financial Statements
35 Fiduciary Funds Statement of Changes in Fiduciary Net Position For The Year Ended December 31, 2020 (In Thousands) Custodial Funds Private External Purpose Trust Custodial Investment Funds Funds Pool ADDITIONS Taxes $ - $ 1,048,943 $ - Licenses & Permits - 93 - Intergovernmental Revenue - 1,751,316 - Charges for Goods & Services - 56,527 - Fines & Forfeitures - 365 - Miscellaneous Revenue 4,824 2,051,085 452,993 TOTAL ADDITIONS 4,824 4,908,329 452,993
DEDUCTIONS General Government - 2,280,423 - Public Safety - 148,573 - Utilities - 4,394 - Economic Environment - 1,072 - Social Services - 6,369 - Culture And Recreation - (17,616) - Payroll Related Pass Through And Other - 2,367,413 - TOTAL DEDUCTIONS - 4,790,628 -
CHANGE IN NET POSITION 4,824 117,703 452,993 NET POSITION - Beginning of Year 13,174 29,924 1,428,346 Prior Period Adjustment - (1,164,843) -
NET POSITION - End of Year $ 17,999 $ (1,017,216) $ 1,881,339
See Accompanying Notes To Financial Statements
36 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Pierce County is a municipal corporation governed by a locally elected seven-member council. The executive branch of government is elected at-large and consists of the County Executive, Assessor- Treasurer, and Auditor. The County provides services in the areas of public safety, fire inspection, road construction and maintenance, flood control, parks and recreation, judicial administration, land use planning and development, health and social services, sewer utility services, and certain solid waste programs.
REPORTING ENTITY
The accompanying financial statements present all funds, departments, and its blended component units, entities of Pierce County for which the County is considered to be financially accountable. Blended component units are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. Certain Custodial Funds referred to as Custodial Funds‐Other Governments/Special Districts are also included. Pursuant to the laws of the State of Washington, the County Treasurer, as custodian of the Custodial fund assets, is the ex-officio treasurer of all special districts within the County. Funds received from or for such special districts are deposited in a central bank account and invested or disbursed according to instructions from the respective special districts. There are no other relationships with organizations of such a nature and significance that exclusion would render the County financial statements incomplete or misleading.
BLENDED COMPONENT UNITS
The Flood Control Zone District (FCZD) was created under the authority of RCW 86.15 to manage, plan, and construct flood control facilities within the County. By statute, the County Council and County Executive serve as the District’s Board of Supervisors.
The FCZD is a blended component unit of the County for the following reasons: (1) it is a legally separate entity established as a quasi-municipal corporation and independent taxing authority; and (2) Pierce County appoints the voting majority of the FCZD board because the County Council members are the ex officio supervisors of the district. The FCZD financial presentation is on a blended basis because the two governing boards are substantively the same and the primary government has operational responsibility for the component unit. It issues its own financial statements, which are audited by the State Auditor. Financial statements of the FCZD are included in Non-major Special Revenue Funds in the Governmental Funds section of this CAFR. Independently audited statements for the FCZD can be obtained from 2702 S 42nd St, Ste 201; Tacoma, WA 98409.
In December 2014, the Pierce County Council formed a Transportation Benefit District (TBD) as a taxing district to provide funding for transportation and related safety projects within the bounds of unincorporated Pierce County. There were no funds collected or expended for the TBD in 2020. The TBD will be reported as a blended component unit as the majority of the governing board will be members of the County Council, acting in an ex-officio capacity, and the County Assessor-Treasurer will act as the District’s Treasurer.
37 RELATED ORGANIZATIONS
County officials are responsible for appointing the members of the boards of certain related organizations. There is no evidence that the Council can influence the programs and activities of these organizations or that they create a significant financial benefit or burden to the County. For these reasons they do not warrant inclusion in the reporting entity. There were no material financial transactions during 2020 between the County and the following related organizations: the Pierce County Housing Authority, the Community Development Corporation, and the Economic Development Corporation.
In 2019, South Sound 911 (SS911) became a Public Development Authority (PDA) in accordance with RCW 35.21.730-755 and is now governed by an 11-member Board of Directors to which the SS911 executive director reports. All local government agencies contracting for the agency’s services are represented on the board, either directly or indirectly. The County’s relationship with SS911 includes imposition of a 1/10 of a cent sales tax in 2012 that will be collected by the state, remitted to the County, and subsequently provided to SS911 for its use until 2036. In addition, as of 2020, the County has three series of General Obligation Bonds outstanding issued for public safety radio and answering point equipment and facilities. Debt service costs are deducted from the SS911 sales tax receipts monthly by the County after which the remainder of each month’s revenue is provided to SS911. The bonds were issued for radio system improvements and SS911 building construction and improvements. These capital assets will be owned and operated by SS911 when the bonds are fully paid.
JOINT VENTURES
The County participated one joint venture during 2020. The joint venture is with the City of Tacoma: The Tacoma-Pierce County Health Department.
JOINT OPERATIONS
In January of 2015, Pierce County and Pierce Transit entered into an agreement to provide for the maintenance, operation, and governance of shared radio and microwave systems to carry voice and data traffic – the Pierce County Combined Communications Network (CCN). This 700 MHz network ensures consistent communications for the County’s public safety programs, Pierce Transit’s transportation operations, as well as other public agencies (as approved by CCN’s Executive Board).
The governing board is comprised of two representatives of each of the parties to the agreement or their designee. The Executive Board is responsible for the overall management, administration, and policy and strategic planning for the CCN. A joint board consisting of the Executive Director of Pierce Transit Service Delivery and Maintenance and the Director of the Pierce County Department of Emergency Management, or their designee, advises the Executive Board and is charged with the day- to-day monitoring of CCN operations.
GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all non-fiduciary activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
38 The statement of activities demonstrates the degree to which direct expenses of given functions or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) Charges to 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 of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, though the latter are excluded from government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in fund financial statements.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND BASIS OF PRESENTATION
Government‐Wide Financial Statements. The economic resources measurement focus and the accrual basis of accounting are used to prepare government-wide financial statements. Revenues are recorded when earned and expenses are recorded when a liability is 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.
As a general rule the effect of interfund activity has been eliminated from government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the sewer utility and various other County functions, and certain indirect costs that have been included as part of program expenses reported for various functional activities. Elimination of these charges would distort direct costs and program revenues reported for the related functional activities.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Governmental Funds. General government programs are accounted for in governmental funds using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the flow of current financial resources measurement focus, only current assets and current liabilities are generally included in governmental fund balance sheets. Reported fund equity (net current assets) is considered a measure of "expendable available financial resources". Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, governmental fund operating statements present a summary of sources and uses of "expendable available financial resources" during the current period.
Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when "measurable and available"). "Measurable" means the amount of a transaction can be determined. "Available" means the revenue is collectible within the current fiscal period or collected within 60 days of the end of the current fiscal period in order to pay liabilities of the current period. Expenditures are recorded when related liabilities are incurred and will be liquidated with expendable available resources. However, debt service expenditures, as well as claims and judgments are recorded
39 only when payment is due.
Revenues susceptible to accrual, such as certain taxes, interest earnings on investments, rents, interfund payments for services and payments from other governmental units, are recorded when earned. Other taxes and receipts become measurable and available when received and are recognized as revenue at that time. Entitlements are recorded at the time of receipt or earlier if the “susceptible to accrual” criteria are met. Expenditure-driven grants are recognized as revenue when qualifying expenditures have been incurred and all other grant requirements have been met.
Proprietary Funds. Certain county business‐type activities and centralized intra-governmental activities are accounted for in Enterprise Funds and Internal Service Funds, respectively. Proprietary funds use the cost of services or flow of economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when liabilities are incurred. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing, producing, and/or delivering goods in connection with respective principal ongoing fund operations. Principal operating revenues are charges to customers for sales and services.
The Sewer Utility Fund specifically recognizes operating revenues for the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses result directly from transactions that provide principal services. All other revenues and expenses that do not meet these criteria are reported as non-operating revenues and expenses.
Fiduciary Funds are used to account for assets held in a trustee capacity or as an agent on behalf of other governments, special districts, private organizations or individuals. Fiduciary funds include Private Purpose Trust funds and Custodial Funds.
Custodial Funds account for resources that are held by the county in a custodial capacity. These funds include two separate classifications: funds used to account for resources of other governments and special districts and their investments balances identified in the external investment pool.
County private-purpose trust funds are accounted for in essentially the same manner as proprietary funds.
The County reports the following private-purpose trust funds:
Cash with Trustee Fund – Used to account for deposits held by the Clerk of the Superior Court pending resolution of court action, public deposits held by District Court pending resolution of court actions, jail inmate and juvenile detention inmate monies, and deposits held by the County Auditor for auto licenses.
County Surety & Impact Deposit Fund – Accounts for contractor deposits held for Planning & Public Works construction projects. The deposits are reimbursed when the construction project is complete.
Lake Tapps Trust Fund – Accounts for contributions held in fiduciary capacity for the Lake Tapps Task Force. The Task Force is dedicated to the preservation of Lake Tapps as an important public resource.
40 Nisqually Interpretive Center Fund – Accounts for revenues generated from timber sales. Proceeds are to be used for specific authorized activities for timber management needs.
Treasurers Trust Fund – Accounts for unclaimed effects and assets of deceased individuals
FUND FINANCIAL STATEMENT PRESENTATION
The County reports three major governmental funds and one major proprietary fund. All non-major governmental funds are summarized into a single column in the governmental fund financial statements. All non-major proprietary funds are similarly summarized in a single column in proprietary fund statements, which also include a summary column for Internal Service Fund statements. Fiduciary fund statements include private‐purpose trust funds and certain Custodial funds.
A variety of County programs are accounted for in non-major governmental funds, primarily programs such as arts; community development; criminal justice activities; enhanced 911 emergency telephone system; parks; open space acquisition; surface water management; payment of debt service; non- major capital projects and certain other services.
Governmental Fund Types. The County reports the following governmental fund types:
General Fund is the primary County operating fund and accounts for all general government financial resources except those required to be accounted for in another fund type.
Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are generally legally restricted to expenditure for specific purposes other than debt service or capital projects.
Debt Service Fund is used to account for the accumulation of resources for payment of principal and interest on County general obligation bonds.
Capital Project Funds account for acquisition, construction, and remodeling of major capital facilities and for major capital equipment purchases.
The County reports the following major governmental funds:
General Fund provides general government services funded primarily by general revenues such as property and sales taxes, and charges for general government services.
Roads Special Revenue Fund is funded primarily by portions of property and sales taxes dedicated to maintenance and operation of public roads in the County.
Covid-19 Relief Act Fund is funded by non-grant assistance appropriated by the Federal Government to State and Local governments in response to the global coronavirus pandemic.
Proprietary Fund Types. Two classifications of Proprietary Funds are used to account for certain business‐type activities and interfund services:
41 Enterprise Funds account for various business‐type activities for which a fee is charged to external users for services such as sewer utilities, solid waste collection, ferry and airport operations, and public golf courses.
The County reports the following major Enterprise Fund:
Sewer Utility Fund accounts for all activities needed to provide sewer services to County residents, including but not limited to administration, operations, maintenance, construction, and related debt service.
Non-major Enterprise Funds include the business‐type activities for ferry services, solid waste management and landfill reserve, airport operations, and certain golf course operations.
Internal Service Funds account for centralized services provided to other County departments or agencies on a cost reimbursement basis. Centralized intragovernmental services include heavy equipment and vehicle acquisition and maintenance; computer systems and data processing; operation of County facilities and communications systems; risk management; and general administrative services.
CASH
Cash includes cash on hand, demand deposits, and certain short‐term investments held in the treasury pool or held in certain trustee accounts. The treasury pool invests all short‐term cash surpluses not otherwise invested by individual funds. Earnings from these investments are largely allocated to the General Fund for financing general County operations. Since participating funds use the pool as if it were a demand deposit account, proprietary fund equity in treasury pool is considered cash for cash flow reporting purposes.
INVESTMENTS
Investments held by the County are reported at fair value. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. County government funds are invested based on a predetermined percentage of cash balance in each fund. Certain fiduciary funds direct the nature of investments made by the County as trustee or agent for such funds.
RECEIVABLES
Receivables include charges for services rendered by the County. All unbilled service receivables are recorded at year-end. The provisions for estimated uncollectible receivables are reviewed and updated at year-end. These provisions are estimated based on an analysis of an aging of the year-end Accounts Receivable balance or the historical rate of uncollectibility.
Taxes Receivable - Property taxes levied for the current year are recorded on the balance sheet as taxes receivable and unearned revenues. Property taxes are recognized as revenue when collected in cash at which time the balance sheet accounts, taxes receivable and unearned revenues, are reduced by the amount of the collection. The amount of taxes receivable at year-end that would be collected
42 soon enough to be used to pay liabilities of the current period is not material. At year-end all uncollected property taxes are reported on the balance sheet as taxes receivable - delinquent and unearned revenues.
Assessments Receivable In the governmental funds, unpaid assessments are reported in three accounts: Current, Delinquent, and Unearned. Current assessments are those due within one year, Delinquent assessments are past due, and unearned assessments are due in the future. Revenues from the assessments are recognized as they become current; that is, both measurable and available to finance expenditures of the current period.
Accounts Receivable consist of amounts owed by private individuals and organizations for goods delivered or services rendered in the regular course of business operations. Receivables are shown net of allowances for uncollectible accounts.
Contracts Receivable arise from a written agreement or contract with private individuals or organizations.
DUE TO/FROM OTHER GOVERNMENTS
Amounts due to or from other governments for activity such as grants, shared revenues and charges for services are accrued at year-end.
INTERFUND RECEIVABLES AND PAYABLES
Receivables and payables resulting from lending or borrowing activity between funds are classified as “Interfund Loans Receivable/Payable“ when repayment is expected during the next fiscal year; or as “Advances To/From Other Funds“ when long‐term repayment is expected. Such long‐term advances are offset by a fund balance reserve for governmental fund types to indicate such amounts are not expendable available financial resources. All other interfund balances are classified as “Due From Other Funds“, or “Due To Other Funds“. Any residual balances outstanding between governmental activities and business‐type activities are reported in government‐wide financial statements as “internal balances”.
INVENTORIES AND PREPAID ITEMS
Inventories are valued at cost using the first‐in, first‐out costing method. Inventories for governmental fund types are not significant at December 31, 2020 and, accordingly, are not recorded for financial reporting purposes and are recorded as expenditure when purchased. Proprietary fund types recognize the cost of inventory items as expense when consumed. Certain other purchases representing costs applicable to future accounting periods are recorded as prepaid items in both government‐wide and fund financial statements. Any prepaid items in governmental fund statements are offset by fund balance reserves to indicate amounts that are not considered to be expendable available financial resources.
43 RESTRICTED ASSETS
Resources for construction, debt service and other future obligations within Enterprise Funds are segregated and classified as restricted assets. Related liabilities are included on the balance sheet as liabilities payable from restricted assets or as certain long‐term liabilities. Specific debt service reserve requirements are described in Note 9, Debt.
The restricted assets of the enterprise funds are composed of the following (in thousands): Cash In Treasury Pool - Current $959 Cash with Trustee – Current $1,259 Investments – Current $22,858 Landfill Postclosure Charges - Noncurrent $849
CAPITAL ASSETS AND DEPRECIATION
Capital Assets. Capital assets, including land, buildings, property, plant, equipment and public domain infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in applicable governmental or business‐type activities columns in government‐wide financial statements. Intangible assets and computer software are considered capital assets when capitalizable costs exceed $1.0 million. Buildings and infrastructure assets are considered capital assets when initial individual cost exceeds $75,000. Other assets are defined as capital assets when initial individual cost is more than $5,000 with an estimated useful life in excess of one year. Such assets are reported at historical cost or estimated historical cost determined using the current replacement cost method, if actual historical cost is not available. Donated assets are recorded at acquisition value at date of donation. Estimated cost of infrastructure assets includes the entire network of roads, bridges, levees, and surface water improvements acquired after January 1, 1981. Certain proprietary fund asset costs include related interest expense incurred during construction.
Depreciation. Exhaustible capital assets are depreciated on the straight-line method over their estimated useful lives as follow:
Structures and buildings – 25 to 75 yrs Transportation equipment – 3 to 10 yrs Airport hangars – 10 yrs Tools and shop equipment – 3 to 5 yrs Furniture and office equipment – 4 to 15 yrs. Other equipment – 5 yrs Sewer pumping plant, collection – 10 to 99 yrs Infrastructure – 25 to 99 yrs and transmission lines Intangible Assets/Software – 5 to 10 yrs
Proprietary funds charge depreciation of exhaustible capital assets to operating expense. Repairs and maintenance are expensed as incurred. Major renewals, replacements and betterments are capitalized.
DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
In addition to assets, the statement of net position may report a separate financial statement element for deferred outflows of resources. This separate element represents consumption of net position that applies to future periods and, accordingly, will not be recognized as an outflow of resources (expense/ expenditure) until then. The County has activity that qualifies for reporting in this category due to pension liability reporting requirements of GASB 68 and loss on refunding.
44 In addition to liabilities, the statements reflecting financial position may report a separate financial statement element for deferred inflows of resources. This separate element represents an acquisition of net position that applies to future periods and, accordingly, will not be recognized as an inflow of resources (revenue) until that time. The County has three categories of activity that qualifies for reporting in this category: unavailable revenue from property taxes, grants received in advance, and pension inflows due to reporting requirements of GASB 68. These amounts are deferred and will be recognized as an inflow of resources in the period that the amounts become available.
VOUCHERS AND ACCOUNTS PAYABLE
Vouchers and accounts payable are obligations due to vendors and trade suppliers who have provided inventory, goods or services used in operations.
ACCRUED WAGES AND BENEFITS PAYABLE
Accruals include wages, payroll taxes, and employee benefits accruals such as pension funds.
UNEARNED REVENUES
Unearned revenues are amounts recognized as receivables but not revenues in governmental funds because the revenue recognition criteria have not been met.
LONG‐TERM OBLIGATIONS AND UNEARNED CHARGES
Governmental funds recognize bond premium and discounts, and issuance costs in the current period. Bond proceeds are reported as other financing sources net of any applicable premium or discount. Issuance costs are reported as debt service expenditures.
Long‐term obligations are reported as liabilities in the statements of net position for applicable governmental and business‐type activities in government‐wide financial statements and in proprietary fund type statements. Bond premiums and discounts are amortized over the life of the related bonds using the straight line method (which approximates the effective interest method). Debt issuance costs are expensed in the period incurred. Bonds payable are reported net of premiums and discounts.
Unearned charges in Enterprise Funds include preliminary survey charges, and landfill closure and post- closure costs. Preliminary planning costs incurred for proposed projects are delayed pending construction of the project. Costs relating to projects ultimately constructed are transferred to construction in progress. Costs relating to abandoned projects are charged to expense. Solid Waste Management Fund landfill post-closure costs are amortized over an estimated post-closure care period of 25 years.
Arbitrage occurs when County funds borrowed at tax‐exempt interest rates are invested by the County in higher yielding taxable securities. When such investment interest earnings exceed interest expense for tax‐exempt debt, the County records a liability to the federal government and reduces interest revenue. When such interest earnings are less than interest expense, a receivable and interest revenue for any federal government refund are recorded.
45 COMPENSATED ABSENCES
The liability for compensated absences consists of unpaid vacation, sick leave, compensatory time, and County portions of related payroll taxes. The liability for compensated absences is accrued when incurred in government wide, proprietary, and fiduciary fund financial statements.
Vacation is earned based on a legally prescribed formula that allows an employee to accumulate at year end the greater of forty five days or one year's vested accrual of vacation hours.
Sick leave is earned at the rate of one day per month with no maximum accumulation specified. Employees are entitled to receive 25% to 75% of accumulated sick leave (up to 200 days) upon termination due to retirement, disability, or death; or 10% of accumulated sick leave (up to 200 days) upon other termination in good standing. For reporting purposes, 10% of accumulated sick leave is accrued. The vesting method is used to calculate sick leave.
The reduction in the Compensated Absences liability reflects the actual payout at termination. The addition to the liability represents the calculated difference between the ending and the beginning balance plus the reduction. The short-term liability amounts is the actual average termination payout over the last three years, plus 10% of the leave benefits. The long-term liability amount is the difference between the total ending balance less the short term liability.
PENSIONS
For purposes of measuring the net pension liability or asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension plans and additions to/deductions from those plans’ fiduciary net position have been determined on the same basis as they are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Lifetime full medical coverage is provided to full‐time law enforcement officers who became members of the Law Enforcement Officers and Fire Fighters (LOEFF) retirement system prior to October 1, 1977. During 2018, the County adopted current financial reporting standards to measure and report the costs of this benefit program.
In addition, as of 2020, the County implemented participation in the State Public Employees Benefits Board (PEBB) medical and dental health benefits plan. As a part of this plan, employers provide OPEB through PEBB’s implicit and explicit rate subsidies for retirees. This implementation results in a change in benefit terms for the 2020 fiscal year. The implementation resulted in special item recorded in the financial statements.
Accordingly, a liability for the accumulated unfunded actuarially required contribution is reported in the statement of net position. Actual postemployment medical benefit costs are reported as expenditures in the year incurred.
46 FUND BALANCE COMPONENTS
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. Fund balance of governmental funds are reported as either non-spendable, restricted, committed, assigned, or unassigned. The government itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance).
Non-spendable Fund Balance includes items that cannot be spent because the related assets are not in spendable form or must be maintained intact. This includes non-spendable resources such as the long-term portions of loans and contract receivable.
Restricted Fund Balance represents resources with restrictions on use imposed either by an external party (such as creditors, grantors, or donors); or imposed by law (such as federal or state regulations, the County charter, or enabling legislation).
Committed Fund Balance can be used only for specific purposes pursuant to constraints imposed by a formal action such as a County ordinance adopted by the County’s highest level of decision-making authority, the County Council with approval of the County Executive. Similar formal action is required to create, modify, or rescind an ordinance.
Assigned Fund Balance includes amounts that are constrained by the County’s intent to be used for a specific purpose, but are neither restricted nor committed. Use of assigned fund balance may be established by the County Council, the County Executive, or, in certain circumstances, by the Director of Finance. No formal action is required to reallocate assigned fund balance. For governmental funds other than the General Fund, assigned fund balance is the residual amount within the fund that is not restricted or committed.
Unassigned Fund Balance is the residual amount of the General Fund not included in the four categories described above. Also, any deficit fund balances within the other governmental fund types are reported as unassigned.
Funds are created by ordinance by the County Council and County Executive and money is authorized to be transferred to certain funds for a particular purpose. At this point, balances in these funds are at least committed, and may be further restricted depending on whether there is an external party, constitutional provision, or enabling legislation constraint involved. Subsequent transfers in to these funds are classified as assigned fund balance.
NET POSITION AND FUND BALANCE POLICIES
Net Position Flow Assumption. When both restricted resources (such as bond or grant proceeds) and unrestricted resources are used to fund outlays for a particular purpose, County policy stipulates use of restricted resources first, then unrestricted resources as needed. This flow assumption is used to determine amounts reported as restricted – net position and unrestricted – net position in the government‐wide and proprietary fund financial statements.
47 Fund Balance Flow Assumptions. When both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance) are available for use to fund outlays for a particular purpose in governmental funds, County policy stipulates use of restricted resources first, then unrestricted resources as needed. When expenditures are incurred which can be paid from unrestricted resources, committed fund balance will be spent first, followed by assigned fund balance and then by unassigned fund balance.
Minimum Fund Balances. The long-term goal of Pierce County is to have an unreserved General Fund balance of fifteen percent of the upcoming year's expenditures (determined on the budget basis of accounting).
The goal for all other funds is to retain sufficient fund balance to provide adequate cash flow; support designated mandates; finance infrastructure needs; meet equipment replacement schedules; and comply with other minimum requirements as may be established specifically for each fund.
Use of Fund Balance. Fund balance in the General Fund may be utilized to fund one‐time activities such as, but not limited to, equipment outlay, capital construction, and one‐time operational projects.
EFFECTIVE GASB STATEMENTS
The following Governmental Accounting Standards Board (GASB) Statement was implemented early as of 2020:
GASB Statement No. 89 Accounting for Interest Cost Incurred before the End of a Construction Period
The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period.
48 NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
BUDGETARY DATA
Budget Policies and Controls. In accordance with the Pierce County Charter, the County Council is required to adopt biennial budgets for all budgeted funds for the next two fiscal years no later than thirty days prior to the end of the current fiscal year. Each quarter during the fiscal year, the executive must submit a written report to the council explaining the relationship between actual and budgeted year-to-date revenues and expenses, and the estimated income and expenses. If income is estimated to be less than anticipated, the council may reduce appropriations as necessary to keep expenditures within income. Budgets may be administratively revised within all funds except the General Fund and within departments in the General Fund as long as the total appropriation is not changed. All appropriations lapse at the end of the biennium with the exception of project-length budgets for certain capital projects.
The County Council may also modify the budget on an emergency basis by appropriating contingency funds, revenues received in excess of budgeted revenues, or funds from any other legally available source.
The legal level of budgetary control, the level at which expenditures may not legally exceed appropriations, is the fund level for all funds except for the General Fund, which is budgeted at the department level.
Four special revenue funds were not budgeted in 2020-21. No budget is required for the Treasurer’s Operations and Maintenance Special Revenue Fund pursuant to RCW 84.56.020. The Anti-Profiteering and Revolving Special Revenue Fund, Taxpayer Accountability Special Revenue Fund, In-Lieu Fee Wetlands Mitigation Program Special Revenue Fund, and the Federal Forest Services Special Revenue Fund were not budgeted because no expenditures were anticipated. The Flood Control Zone District Fund budget is not included in the County’s budget as that district’s board is primarily responsible for adopting the budget, and it is separately audited from the County.
Note: There are two other funds that were not budgeted for in 2020-21 but were also not budgeted in 2018 or 2019: the Permanent Jail Construction Fund and South Sound 911 Construction Fund.
Basis of Budgeting. The biennial budget is prepared using the modified accrual basis of budgeting consistent with generally accepted accounting principles (GAAP) for governmental fund types (the General Fund, and Special Revenue, Capital Project and Debt Service Funds). For GAAP financial reporting purposes, the General Fund budget basis financial reports are combined with budget basis financial reports of two funds (Geographical Information Systems and Arts Commission) which are budgeted as separate Special Revenue Funds for budgetary control purposes. Budget basis accounts are integrated in the accounting system and presented herein with comparison to actual results of operations for the General Fund and the major Special Revenue Funds.
The Pierce County Charter requires proprietary fund budgets. Budgets for proprietary funds are prepared on a revenue and expense basis similar to the budgets for governmental fund types.
49 Encumbrances. An encumbrance system is maintained to account for commitments resulting from approved purchase orders. All appropriations lapse at the end of the year with the exception of Capital Project Funds. Accordingly, encumbrances outstanding at year-end must be absorbed within budget appropriations for the next year. Outstanding encumbrances in Capital Project Funds do not constitute expenditures or liabilities and are included in restricted, committed, and assigned fund balance classifications as appropriate. Outstanding encumbrances for governmental funds other than Capital Project Funds are not material at year-end.
DEFICIT FUND EQUITY
FIDUCIARY FUNDS The Custodial Funds reported a deficit fund balance of $1 billion. The balance of this deficit is held in the External Investment Pool. All available cash for the Custodial Funds is invested in the Local Government Investment Pool (LGIP) managed by the State of Washington. This pool is deemed an external investment pool. Per GASB 84, custodial fund investments in an external investment pool must be reported in a separate External Investment Pool Fund. In total, the balance of the Custodial Funds and the External Investment Pool present a positive net position for the Custodial Funds.
GOVERNMENTAL NON MAJOR SPECIAL REVENUE FUNDS The Housing and Homeless Special Revenue Fund reported a net deficit fund balance of $139,000. The primary reason for this deficit fund is due to the fully reimbursable nature of the grant activity in this fund. County activity is recorded as expenditures and then reimbursement of those expenditures is requested from the grantor. The timing of these requests may not meet timing of closing the prior year.
The Treasurer’s Operations & Maintenance fund reported a net deficit fund balance of $2,600. The primary reason for this deficit is due to programmatic expenditures that were not sufficiently covered by associated revenues.
ENTERPRISE FUNDS The Chambers Creek Regional Park Fund reported a net position deficit of $641,000 due primarily to start-up costs from bonds issued for the golf course for construction and operations.
50
NOTE 3 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
As mentioned earlier, government-wide financial statements are prepared using the economic resources measurement focus and full accrual method of accounting; and fund financial statements are prepared using the flow of resources measurement focus and modified accrual method of accounting. The different measurement focuses and methods of accounting result in certain differences between government- wide and fund financial statements. Such differences are summarized in reconciliations included as part of the governmental fund financial statements.
Governmental fund balance sheet. The balance sheet for governmental funds includes a reconciliation of differences between total governmental fund balances and net position of governmental activities reported in the government-wide statement of net position. The schedule presents detailed explanations for major elements of the reconciliation including certain government-wide assets, liabilities, and net position not included in governmental fund balance sheets.
Governmental fund statement of revenues, expenditures, and changes in fund balances. The statement of revenues, expenditures, and changes in fund balances of governmental funds includes a reconciliation that summarizes differences between “Net Change in Fund Balances – Total Governmental Funds” and “Changes in Net Position of Governmental Activities” reported in the government-wide statement of activities. Detailed explanations of certain differences are presented below.
The first element of the reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense...” Details of the $19.5 million difference are as follows: (In Thousands)
Increases in government-wide net position on the statement of activities for capital outlay expenditures in funds that are capitalized in government-wide statements, not expensed $ 89,651
Decreases in government-wide net position in the statement of activities for capital costs of construction in progress expensed for certain projects, or donated to or annexed by other governments, but not expensed in governmental fund statements (40,688) Depreciation expense for capital assets used by governmental activities is reported in the government-wide statement of activities, but is not included in governmental fund statements (29,490)
Net adjustment to increase Net Changes in Fund Balances - Total Governmental Funds to determine Changes in Net Position of Governmental Activities $ 19,473
51
The second element of the reconciliation states “Certain portions of county taxes and other revenue that do not provide current financial are either reported as revenue when received or reported as deferred revenues or deferred inflows of resources in governmental fund statements, but recognized currently as revenue in government-wide statements…” Details of the $27.2 million difference are as follows:
(In Thousands) Increase in net position from certain capital assets donated to the county is not reported in governmental funds $ 29,621
Decrease in net position from various miscellaneous capital asset transactions (i.e., disposals for sales, trade-ins, and donations) is not reported in governmental funds. $ (1,311) Current year year changes in county taxes and civil penalties not reported in the funds but included in the Statement of Activities. (1,065) Net adjustment to taxes and other revenue $ 27,246
The third element of the reconciliation states “Governmental funds report the issuance of long-term debt; the repayment of the principal on long-term debt; and related items occurring when debt is first issued (such as premiums and/or discounts) as increases or decreases in total governmental fund balances. Issuing and repaying long-term debt has no effect on government-wide net position…” and “This amount represents the net effect of such differences in the treatment of such long-term debt and related items.” The difference of $17.2 million consists of the following: (In Thousands)
Changes in governmental fund balances include decreases for repayment of principal on long-term debt and changes in related premiums, discounts, issue costs and amortization of losses on refundings. In entity-wide statements, principal payments and related charges are treated as a reduction of debt resulting in adjustments to governmental fund balance to determine changes in net assets for government-wide reporting as follows: Repayment of principal on long-term debt $ 27,980 Related premium, discounts, issue costs and amortization, net 2,596
Net adjustment to increase Net Changes in Fund Balances - Total Governmental Funds to determine Changes in Net Assets of Governmental Activities $ 30,576
Changes in governmental fund balances include increases for debt issued or incurred. Such increases in debt and related premiums, discounts, issue costs and losses on refundings are excluded from changes in net assets for government-wide reporting as follows: Refunding bonds issued $ (11,380) General obilgation bond issued - Related premiums, discounts, and issue costs, net ( 2,020) Capital leases and other contracts payable incurred - Increase in debt and premiums, net of discount, and issue costs $ ( 13,400) Total Debt Activity $ 17,175
52
The fourth element of the reconciliation states “Changes in certain accrued assets and liabilities are included in the statement of activities. Such changes do not require the use of current financial resources and, therefore, are not included in the change in governmental fund balances.” The detail of the $26.3 million difference are as follows:
(In Thousands) Compensated absences $ ( 2,391) Pension related revenues and expenses 26,520 Other post employment benefits obligation ( 44,481) Accrued interest ( 89) Total Changes in Certain Accrued Assets and Liabilities $ (20,441)
And the final element of the reconciliation states “Internal Service Funds are used by management to charge the costs of certain activities to individual funds. The effect of net revenues (expenses) of such activity is not included in the change in governmental fund balances.” The detail of the $5.2 million difference are as follows:
(In Thousands) To eliminate profit (loss) from services provided between Internal Service Funds and services provided to governmental funds. $ (2,373) To eliminate interest income and expense between Internal Service Funds and governmental funds. 175 To eliminate transfers between Internal Service Funds and transfers to or from governmental funds. 6,294 To record income from external sources for Internal Service Funds 356
Net adjustment to increase Net Changes In Fund Balances - Total Governmental Funds to determine Changes In Net Position of Governmental Activities $ 4,452
53 NOTE 4 - CASH AND INVESTMENTS
As of December 31, 2020, the County has the following investments and maturities:
Local Government Investment Pool (LGIP). The LGIP is not registered with the Securities and Exchange Commission (SEC) as an investment company and is not rated. It is a voluntary investment vehicle operated by the Washington Office of the State Treasurer (OST). Over 530 local governments have participated in the Pool since it was started in 1986 to provide safe, liquid, and competitive investment options for local governments pursuant to the Revised Code of Washington (RCW) 43.250. All investments are subject to written policies and procedures adopted by the State Treasurer’s Office. The LGIP is considered extremely low risk. Funds are invested in a portfolio of securities in a manner generally consistent with the SEC’s Rule 2A-7 of the Investment Company Act of 1940 as it currently stands. The LGIP functions as a demand deposit account where the County receives an allocation of its proportionate share of pooled earnings using an amortized cost methodology. Unrealized gains and losses due to changes in the fair values are not distributed to the County.
The LGIP manages a portfolio of securities that meet the maturity, quality, diversification, and liquidity requirements set forth by the Governmental Accounting Standards Board (GASB) for external investment pools that elect to measure, for financial reporting purposes, investments at amortized cost.
The LGIP transacts with its participants at a stable net asset value per share of $1.00, the same method used for reporting. Participants may contribute and withdraw funds on a daily basis. Participants must inform OST of any contribution or withdrawal over one million dollars no later than 9am on the same day the transaction is made. Contributions or withdrawals for one million dollars or less can be requested at any time prior to 10am on the day of the transaction. However, participants may complete transactions greater than one million dollars when notification is made between 9am and 10am, at the sole discretion of OST. All participants are required to file with the State Treasurer documentation containing the names and titles of the officials authorized to contribute or withdraw funds. The LGIP does not impose liquidity fees or redemption gates on participant withdrawals.
The County utilizes the LGIP for its own investments as well as investments made on behalf of Special Purpose Districts. Total investments in LGIP made on behalf of Special Purpose Districts are reported in the External Investment Pool.
54 Separately Managed Portfolio. Pierce County entered into an Interagency Agreement with the State of Washington’s Office of the State Treasurer in 2019. The purpose of this agreement was to authorize the State Treasurer’s Office to invest the County’s core funds in a separately managed investment portfolio. On June 1, 2018 a deposit in the amount of $200 million was made to the State of Washington. The State Treasurer’s Office invests these funds in accordance with the State’s investment policies and procedures and provides monthly reporting to Pierce County. The County does not record the individual transactions but records the net investment changes monthly. As these are longer-term funds, the balance of the portfolio is reported at market value as of the valuation date.
Interest Rate Risk. The County investment policy does not specifically address the management of interest rate risk. The exposure to fair value losses arising from increasing interest rates is managed by requiring that at least twenty percent of the portfolio is comprised of investments maturing within the next year.
Credit Risk. Through its investment policy, the County manages credit risk by restricting County investments to obligations of the U.S. Treasury, U.S. Government agencies and instrumentalities; bankers acceptances; primary certificates of deposit issued by qualified public depositories designated by the Washington Public Deposit Protection Commission; the Washington State local government investment pool; municipal bonds issued by the state or its local governments; and repurchase agreements collateralized by any previously authorized investments. Bankers’ acceptances must be ranked in either of the two highest rating categories by Moody’s Investor Service or Standard & Poor’s. Diversification of the portfolio is achieved by limiting the maximum percentage of investments by type of investment in the portfolio as follows: Moody's Investment Type Investor Service Standard & Poor's Separately Managed Portfolio Not rated Not rated Local Government Investment Pool Not rated Not rated United States Treasury Notes Aaa AA+ Federal Farm Credit Bank Aaa AA+ Federal Home Loan Bank Aaa AA+ Federal Home Loan Mortgage Corp Aaa AA+ Federal National Mortgage Association Aaa AA+
Maximum % of Portfolio Washington State Local Government Investment Pool 100% U.S. Treasury Obligations 100% Federal Agency securities 90% Certificates of Deposit (CDs) 40% Repurchase Agreements (Repos) 40% Bonds of State of Washington or any local government in the State of Washington 20% Bonds of other states or local governments of a state other than State of Washington 15% Commercial Paper 10% Banker’s Acceptance 10%
Custodial Credit Risk. All investments purchased by Pierce County are held and registered in the County’s name in the trust or safekeeping department of a financial institution as established by a written third-party safekeeping agreement between the County and financial institution. Investments in the Separately Managed Portfolio are purchased by the State of Washington’s office of the State Treasurer and are held and registered in the State’s name in the trust or safekeeping department of a financial institution as established by a written third-party safekeeping agreement between the State and financial institution. At December 31, 2019 all cash and time deposits, which total $123.2 million, are insured by either federal depository insurance or by the Washington Public Deposit Protection Commission (WPDPC).
55 Fair Value. GASB 72 addresses accounting and financial reporting issues related to fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GASB 72 establishes a hierarchy of inputs to valuation techniques used to measure fair value.
This hierarchy has three levels:
Level 1 – Pricing inputs are observable inputs such as quoted prices, available in active markets, for identical assets or liabilities on the date of measurement.
Level 2 – Pricing inputs are either directly or indirectly observable inputs available in active markets as of the measurement date.
Level 3 – Pricing inputs are unobservable inputs used in cases where financial instruments are considered illiquid, with no significant market activity and little or no pricing information on the date of measurement.
The table below shows the County’s investments in the hierarchy of inputs format:
Fair Value Measurements Using
Quoted Prices In Significant Other Significant Investments by Fair Active Markets for Observable Unobservable Value Level Identical Assets Inputs Inputs (In Thousands) 12/31/2020 (Level 1) (Level 2) (Level 3) Certificates of Deposit $ 5,000 $ 5,000 $ - $ - United States Treasury Notes - - - - Federal Farm Credit Bank - - Federal Home Loan Bank - - - - Federal Home Loan Mtg Corp - - - - Federal Nat'l Mtg Assn - - - - Separately Managed Portfolio 219,081 219,081 $ 224,081 $ 5,000 $ 219,081 $ -
Fair Value Measurements Using
Quoted Prices In Significant Other Significant Investments by Fair Active Markets for Observable Unobservable Value Level Identical Assets Inputs Inputs (In Thousands) 12/31/2019 (Level 1) (Level 2) (Level 3) Certificates of Deposit $ 10,000 $ 10,000 $ - $ - United States Treasury Notes 15,054 15,054 - - Federal Farm Credit Bank 4,998 4,998 Federal Home Loan Bank 5,027 5,027 - - Federal Home Loan Mtg Corp 9,995 9,995 - - Federal Nat'l Mtg Assn - - - - Separately Managed Portfolio 210,801 210,801 $ 255,875 $ 45,074 $ 210,801 $ -
Investments measured at amortized cost (not subject to fair value hierarchy) Local Gov't Investment Pool 2,415,098 Total Investments 2,639,179
Pricing for the Separately Managed Portfolio comes from Northern Trust
56 NOTE 5 - RESTRICTED ASSETS
Certain assets are restricted for specific purposes under provisions of various bond indentures and County ordinances. Certain assets of Enterprise Funds are restricted for debt service and future construction in Sewer Utility Funds; for landfill self-insurance and post-closure costs in the Solid Waste Management Fund; and for capital purposes in the Airport Fund and Ferry Services Fund.
MAJOR ENTERPRISE FUNDS
Sewer Utility Funds. Restricted assets for sewer utilities at December 31, 2020 are as follows:
Sewer Utility Restricted Assets Capital Improvement (In Thousands) Bond Accounts Accounts Total
Cash and Cash Equivalents $ 696 $ 1,259 $ 1,955 Investments 1,824 15,000 16,824 Total Restricted Assets $ 2,520 $ 16,259 $ 18,779
NONMAJOR ENTERPRISE FUNDS
Solid Waste Management Funds. Restricted assets for operations, landfill reserves, and post-closure care costs at December 31, 2020 are as follows:
Solid Waste Management Restricted Assets Self-Insurance Postclosure (In Thousands) Operations Reserve Care Total Cash In Treasury Pool $ - $ 93 $ 170 $ 263 Investments - 1,637 4,397 6,034 Landfill Postclosure Charges - - 849 849 Total Restricted Assets $ - $ 1,730 $ 5,417 $ 7,147
The County contracts with Pierce County Recycling, Composting, and Disposal, LLC (PCRCD) to provide post-closure maintenance for the two closed County-owned landfills. The Purdy Landfill closed in 1989 and the Hidden Valley Landfill closed in 1999. Post-closure care costs include maintaining the integrity and effectiveness of any final cover, maintaining and operating leachate collection system, monitoring groundwater quality and maintaining and operating gas monitoring system. Post-closure care period ends after the health department assesses the above listed factors and determines that the landfills are not a threat to human health or the environment.
57 The County is required by the Code of Federal Regulations and the Washington Administrative Code to provide financial assurance that post-closure care costs associated with County-owned landfills will be funded. At year-end, $5.4 million of assets in the post-closure care accounts are held as restricted assets to fund liabilities of $97,000 and estimated liabilities of $3.4 million. Changes in estimated liabilities may occur in the future due to inflation or deflation, technology, or changes in post-closure care requirements. Unfunded portions of certain post-closure liabilities are recorded as a receivable (deferred charge). In addition, the Landfill Reserve Self-Insurance Trust Account was established to fund future investigation and remediation, if any, of custodial landfill sites. At year-end, $1.7 million is held as restricted assets in the self-insurance reserve fund for such purposes. Net position restricted for Solid Waste Management Funds total $3.7 million at year-end. At December 31, 2020, the County and PCRCD are in compliance with all provisions of the contract, and with related state and federal regulations.
58 NOTE 6 ‐ RECEIVABLES
Assessments Receivable. Assessments levied against real property located within sewer utility local improvement districts are recorded as “Assessments Receivable” and “Capital Contributions” when assessment rolls are issued. Proceeds are restricted for revenue bond debt service. Similarly, road improvement district special assessments are recorded as “Assessments Receivable” and “Deferred Revenues” when assessment rolls are issued. Special assessments are recognized as revenue when available for payment of current liabilities and proceeds are restricted for special assessment debt service. At year-end, delinquent amounts and allowance for uncollectible assessments were not material.
Receivables, as stated on the Entity Wide Statement of Net Position are as follows: Governmental Business-Type Total (In Thousands) Activities Activities Unrestricted Taxes Receivable $ 33,398 $ - $ 33,398 Assessments Receivable 683 71 754 Accounts Receivable 7,502 9,416 16,917 Allowance for Doubtful Accounts - (37) (37) Contracts Receivable 80 - 80 Interest Receivable 1,939 2 1,941 Other Receivables 1,039 - 1,039 Due From Other Governments 43,505 520 44,025 Total Unrestricted 88,145 9,971 98,116
Restricted Landfill Closure Receivable - 849 849 Total Restricted - 849 849
Total $ 88,145 $ 10,820 $ 98,965
Receivables, as stated in the Governmental Funds Balance Sheet are as follows: Other General Governmental (In Thousands) Fund Roads Funds Total Unrestricted Taxes Receivable $ 29,006 $ 1,260 $ 3,523 $ 33,789 Accounts Receivable 1,367 101 945 2,412 Contracts Receivable - - 80 80 Other Receivables 8 - 1,030 1,039 Interest Receivable 1,482 - 3 1,485 Due From Other Governments 12,198 297 30,987 43,482 Total Unrestricted $ 44,061 $ 1,658 $ 36,568 $ 82,286
59 Receivables, as stated in the Proprietary Funds Statement of Net Position are as follows:
Other Internal Sewer Enterprise Service (In Thousands) Utility Funds Total Funds Current Unrestricted Taxes Receivable $ - $ 71 $ 71 $ - Accounts Receivable 8,575 841 9,416 567 Allowance for Doubtful Accounts (37) - (37) - Interest Receivable 1 0 2 454 Due From Other Governments 469 51 520 315 Total Current Unrestricted 9,008 964 9,971 1,336 Current Restricted Total Current Restricted - - - -
Noncurrent Unrestricted Accounts Receivable - - - - Noncurrent Restricted Landfill Closure Receivable - 849 849 - Total Noncurrent Restricted - 849 849 -
Total $ 9,007 $ 1,813 $ 10,820 $ 1,336
60 NOTE 7 - PROPERTY TAXATION
Taxes Receivable. Property taxes are recorded on governmental fund balance sheets as “Net Receivables” and “Deferred Inflows of Resources” based on the levy date. Taxes assessed upon real property and mobile homes that meet the definition of real property attach as a lien on January 1 of each year. Taxes assessed upon personal property attach as a lien when listed with and valued by the County Assessor. Property taxes are levied for subsequent year collection by the County Council no later than the first Monday in December of the year preceding the lien and collection year. Property tax payments can be made on or after February 15 and are due in equal semi-annual installments by April 30 and October 31 of each year. Delinquent taxes are subject to 12% interest per annum computed on a monthly basis. Additionally, property taxes becoming delinquent on June 1 of the year due are subject to a 3% penalty and property taxes still delinquent on December 1 of the year due are subject to an additional 8% penalty. In accordance with state law, the County may begin foreclosure proceedings for a tax lien on real property when three years have passed since the first delinquency. The County does not record an allowance for uncollectible property tax because taxes are generally secured by liens on related real property and are realizable.
Property tax revenues are distributed monthly on a levy basis to junior taxing districts including cities and towns; fire protection, sewer, school, water, and drainage districts; the port; the rural library; and parks and recreation districts.
State law permits the levy of taxes, to a maximum of $1.80 per $1,000 of assessed valuation for general governmental services and $2.25 per $1,000 of assessed valuation for county road districts. However, state law also dictates that unless a higher rate is approved by a majority of voters through an election, the annual increase in property taxes payable in the following year shall be limited. For districts over 10,000 in population the annual levy increase is limited to the lesser of 1% or the Implicit Price Deflator (IPD) of the amount of regular property taxes that could have been lawfully levied since 1985. In addition, a district is allowed additional revenue from the current year’s new construction value and any increase over the prior year’s state assessed value multiplied by the prior year’s levy rate and divided by 1,000, provided that the levy calculation does not exceed the maximum statutory rates when divided by the current year’s assessed value of the district.
For 2020, Pierce County was permitted to levy $1.0130 per $1,000 on 2019 assessed valuation of $125.8 billion for general operating purposes and $.0379 for conservation futures programs. Statute also authorizes a levy of $1.4090 per $1,000 based on upon 2019 assessed valuation of $53.5 billion for County road construction, road maintenance, and related services within unincorporated Pierce County. The diverted county road levy for 2020 was $0.275242 per $1000 on an assessed valuation of $14,736,620 for a total diverted road levy of $2,954,415 for Traffic and Policing which is allowed by law.
Tax Abatements. The Governmental Accounting Standards Board (GASB) Statement No. 77 requires state and local governments to disclose tax abatements where a decrease in specific taxes for a particular payer may contribute to economic development or otherwise benefits the government or its citizens. This disclosure is required even if tax abatements do not result in a loss of revenue to the reporting jurisdiction.
61 The following are totals of abated taxes (arrayed by authorizing government) pertaining to Pierce County in fiscal year 2020, respectively.
Pierce County Housing projects with 5 or more units. $ 17,115 City of University Place Housing projects with 5 or more units. 27,376 City of Lakewood Housing projects with 5 or more units. 30,913
City of Tacoma Housing projects with 5 or more units. 479,808 Total $ 555,212
The tax abatements did not result in a reduction or loss of revenue to the County because, pursuant to state law, these taxes were reallocated to other property tax payers.
62 NOTE 8 ‐ CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020, is summarized as follows:
Governmental Activities Capital Asset Activity Balance Balance (In Thousands) 1/1/2020 Additions Reductions 12/31/2020 Capital Assets Not Being Depreciated: Land and Land Rights* $ 296 ,068 $ 8 ,118 $ ( 558) $ 303,628 Construction in Progress* 62 ,005 83,907 ( 53,297) 92 ,615 Total Capital Assets Not Being Depreciated 358,073 92,025 (53,855) 396,243
Capital Assets Being Depreciated: Infrastructure and Other Improvements* 796,476 25,834 ( 1,519) 820,791 Buildings 261,489 11,034 (4,346) 268,177 Machinery and Equipment* 177,192 14,575 (15,212) 176,555 Intangibles 11 ,205 3,434 - 14,639 Total Capital Assets Being Depreciated 1,246,362 54,877 (21,077) 1,280,162
Less Accumulated Depreciation For: Infrastructure and Other Improvements* (187,614) (14,693) 1 ,279 (201,028) Buildings* (114,952) (8,976) 2,352 (121,576) Machinery and Equipment* (103,796) (14,206) 13,616 (104,386) Intangibles (4,279) (1,225) - (5,504) Total Accumulated Depreciation (410,641) (39,100) 17,247 (432,493) Total Capital Assets Being Depreciated, Net 835,721 15,777 (3,830) 847,669
Governmental Activities Capital Assets, Net $ 1,193,794 $ 107,802 $ (57,685) $ 1,243,912
Business-Type Activities Capital Asset Activity Balance Balance (In Thousands) 1/1/2020 Additions Reductions 12/31/2020 Capital Assets Not Being Depreciated: Land and Land Rights* $ 57 ,791 $ - $ - $ 57,791 Construction in Progress 5,576 17,601 (5,145) 18,032 Total Capital Assets Not Being Depreciated 63,367 17,601 ( 5,145) 75,823
Capital Assets Being Depreciated: Infrastructure and Other Improvements* 768 ,991 12,737 - 781,728 Buildings* 246 ,664 834 - 247,498 Machinery and Equipment* 149 ,031 1,188 ( 555) 149,664 Intangibles* 4 ,718 - - 4,718 Total Capital Assets Being Depreciated 1,169,404 14,759 (555) 1,183,608
Less Accumulated Depreciation For: Infrastructure and Other Improvements* ( 280,938) ( 21,392) - (302,330) Buildings* ( 59,215) ( 5,257) - (64,472) Machinery and Equipment* ( 64,531) ( 5,690) 408 (69,813) Intangibles* ( 3,339) ( 92) - (3,431) Total Accumulated Depreciation (408,023) (32,431) 408 (440,046) Total Capital Assets Being Depreciated, Net 761,381 (17,672) (147) 743,562
Business-Type Activities Capital Assets, Net $ 824,748 $ (71) $ (5,292) $ 819,385 * Restated
Governmental activities beginning balance restatement for construction in progress of $1.7 million consists of prior period completed roads and surface water management construction. This restatement also includes adjustments to land and infrastructure and other improvements. In addition, existing capitalized asset and accumulated depreciation classifications were reviewed and reclassifications were reflected in the restated beginning balances.
63 Accumulated depreciation activity includes depreciation, disposals, and classification adjustments for previously reported amounts.
Construction in Progress activity during 2020 included certain completed projects for governmental and business-type activities transferred within capital assets from construction in progress to the departments responsible for maintaining the assets. The reduction of construction in progress for governmental activities of $53.3 million primarily includes $18.7 million in completed projects placed in service and transferred to other capital asset classifications combined with $28.7 million in expenditures to South Sound 911 for the construction of a Public Safety Communication Center. Some of the major capitalized completed projects in governmental activities include $2.5 million of road construction, $2.0 million related to surface water management projects and $10.7 million of facilities and $3.4 million of parks construction reported in other real estate and improvements. The total debt related interest cost in business-type activities was $10.2 million, which was reduced to $6.1 million by premium and discount amortization and was expensed. A summary of capital assets placed in service from capital projects for governmental activities during 2020 follows: Governmental Activities Infrastructure Capital Projects Placed in Land and and Other Service Land Rights Buildings Improvements Equipment Total Roads Construction$ 1,518 $ - $ 985 $ - $ 2,503 Conservation Futures Land 13 - - - 13 Water Programs 703 - 1,268 - 1,971 Other Real Estate and Improvements - 9,327 3,319 1,526 14,172 Other Equipment - - - 9 9 Total Governmental Activities $ 2,235 $ 9,327 $ 5,571 $ 1,536 $ 18,668
Depreciation expense charged to functions and/or programs of Pierce County for the year ended December 31, 2020 is as follows:
Governmental Activities Depreciation Expense (In Thousands) General Government $ 5,977 Public Safety 8,243 Physical Environment 2,502 Transportation 10,538 Economic Environment 34 Health and Human Services 181 Culture and Recreation 2,016 Capital Assets Held by Internal Service Funds (Charged to various functions based on usage of related equipment and services) 9,610 Total Depreciation Expense, Governmental Activities $ 39,100
Business-Type Activities Depreciation Expense (In Thousands) Sewer Utility $ 29,126 Chambers Creek Regional Park 1,196 Golf Course 25 Airport 980 Solid Waste Management 297 Ferry Services 807 Total Depreciation Expense, Business-type Activities $ 32,431
64
NOTE 9 ‐ DEBT
LONG-TERM LIABILITIES
General obligation debt and revenue debt are used to finance purchases of major capital items, including acquisition or construction of major capital facilities. General obligation bonds are issued for general governmental and business-type activities. Revenue bonds and certain general obligation debt are repaid from proprietary fund revenues and are accounted for in proprietary fund financial statements.
General obligation bonds are direct obligations and pledge the full faith and credit of the County.
The following general obligation bonds are serviced by General Fund revenues:
Governmental Activities Bonds General Obligation Bonds Date of Maturity Interest Original Outstanding (In Thousands) Issue Date Rates Amount 12-31-20 County 911 System Improvements 09-04-12 07-01-22 2.00% to 5.00% $ 15,195 $ 3,690 South Sound 911 System Improvements 09-11-13 07-01-23 2.00% to 5.00% 28,880 10,100 Sheriff Parkland Precinct Facility 09-11-13 07-01-23 2.00% to 3.125% 2,150 715 2015 G.O. Refunding 2006 Bonds 04-16-15 08-01-26 2.00% to 5.00% 17,405 11,210 2015 G.O. Refunding 2006B Bonds 04-16-15 08-01-26 2.00% to 5.00% 15,940 10,005 2015 G.O. Refunding 2005 LTGOR Bonds 05-04-15 08-01-25 2.00% to 5.00% 21,575 11,025 SS911 Building Construction and Improvements 09-25-19 07-01-36 2.25% to 5.00% 52,910 50,805 2019 G.O Refunding 2019 LTGO Bonds 09-25-19 07-01-29 1.25% to 4.40% 12,100 11,060 2020 G.O. Refunding PIELTGOBAB10 10-22-20 08-01-29 4% 11,380 11,380
$ 177,535 $ 119,990
General obligation bonds serviced by business-type activities are as follow:
Business-Type Activities Bonds General Obligation Bonds Date of Maturity Interest Original Outstanding (In Thousands) Issue Date Rates Amount 12-31-20 Chambers Bay Golf Course 2015 04-16-15 08-01-35 2.00% to 5.00% $ 16,430 $ 13,135 $ 16,430 $ 13,135
Revenue Bonds are issued to finance construction of certain sewer installations and are secured by net revenues of the Sewer Utility, the reserve account and utility special assessments. Bond agreements contain restrictive covenants relating primarily to rate setting, utilization of revenues and maintenance of property, plant and equipment. During 2020, the Enterprise Funds were in compliance with all significant financial bond covenants.
65
Details of the revenue bonds outstanding at year-end serviced by the Sewer Utility follow:
Business-Type Activities Bonds Revenue Bonds Date of Maturity Interest Original Outstanding (In Thousands) Issue Date Rates Amount 12-31-20 Sewer Refunding Revenue, 2010A 10-19-10 08-01-21 2.00% to 4.00% $ 7,565 $ 920 Sewer Revenue, 2012 09-05-12 08-01-42 2.00% to 5.00% 196,090 9,645 Sewer Revenue, 2014 09-25-14 08-01-44 3.375% to 5.00% 32,525 28,970 Sewer Revenue, 2015 10-27-15 08-01-45 3.00% to 5.00% 21,440 19,415 Sewer Refunding Revenue, 2020A 10-22-20 08-01-40 4% 31,440 31,440 Sewer Refunding Revenue, 2020B 10-22-20 08-01-42 0.826% to 2.87% 157,960 157,960 $ 447,020 $ 248,350
Installment Contracts (Direct Borrowings) primarily include loans from the Washington State Public Works Trust Fund to finance construction of ferry boats, sewer system improvements, and expansion of a major arterial in Pierce County.
Governmental activities debt includes road expansion loans to be repaid from the Road Fund and a loan from the Department of Ecology to be repaid from the Surface Water Management Fund as follows:
Governmental Activities Installment Installment Contracts Date of Maturity Interest Original Outstanding (In Thousands) Issue Date Rates Amount 12-31-20 *Public Works Trust Fund Loan #3 - Road Expansion 06-15-05 07-01-25 0.50%$ 2,942 $ 781
Public Works Trust Fund Loan #4 - Road Expansion 11-01-12 06-01-31 0.50% 4,145 2,400
*Department of Ecology - 2010 Septic Repair Loan 03-15-10 04-01-30 2.90% 500 445 $ 7,587 $ 3,626
Business-type activities debt includes one ferry boat loan, two sewer system loans and a loan from the Department of Ecology that represent general obligation debt and are expected to be repaid from revenues of the Ferry Services and Sewer Utility Enterprise Funds as follows:
Business-Type Activities Installment Installment Contracts Date of Maturity Interest Original Outstanding (In Thousands) Issue Date Rates Amount 12-31-20 Public Works Trust Fund Loan #2 - Ferry 07-07-04 07-01-24 0.50% $ 7,058 $ 1,510 Public Works Trust Fund Loan #2 - Sewer 04-08-05 07-01-25 0.50% 1,886 413 *Department of Ecology Loan, 2014 12-10-13 01-31-37 2.30% 60,000 54,868 $ 68,944 $ 56,791
*Contract contains an acceleration clause.
REVOLVING FUND LOAN AGREEMENT
The County’s Public Works and Utilities Department entered into a revolving fund loan agreement with the Washington State Department of Ecology in 2014, which provided $60 million in funds for the County’s Chambers Creek Regional Wastewater Treatment Plant expansion. Repayment terms of the revolving fund agreement are 20 Years with an interest rate of 2.3 percent. Repayment of this loan commenced in 2018. The final loan repayment schedule was established in 2017 and accrued interest in the amount of $2,851,153.79 was incorporated into the principal value of the original loan.
66
CHANGES IN LONG-TERM LIABILITIES
A summary of all long-term Liability activity of Pierce County for the year ended December 31, 2020 follows:
Amount Due Amount Due Governmental Activities Balance Balance Within In More Than (In Thousands) 01-01-20 Additions Reductions 12-31-20 One Year One Year Bonds Payable: General Obligation Bonds$ 135,980 $ 11,380 $ (27,370) $ 119,990 $ 13,595 $ 106,395 Premiums 12,304 2,020 (2,605) 11,719 - 11,719 Discounts (146) - 9 (137) - (137) Total Bonds and Notes Payable 148,138 13,400 (29,966) 131,572 13,595 117,977 Installment Contracts 4,268 - (399) 3,868 399 3,469 Claims and Judgments 6,787 4,770 - 11,557 5,413 6,144 Total OPEB Liabilities 33,130 49,094 - 82,224 724 81,500 Compensated Absences Payable 24,793 5,848 (3,088) 27,553 2,902 24,650 Net Pension Liabilities 71,255 - (4,199) 67,056 - 67,056 Total Long-Term Liabilities for Governmental Activities $ 288,370 $ 73,112 $ (37,652) $ 323,830 $ 23,034 $ 300,797
Amount Due Amount Due Business Type Activities Balance Balance Within In More Than (In Thousands) 01-01-20 Additions Reductions 12-31-20 One Year One Year Bonds Payable: Revenue Bonds $ 263,225 $ 189,400 $ (204,275) $ 248,350 $ 6,815 $ 241,535 Premiums 5,360 6,440 (4,276) 7,524 - 7,524 Discounts (395) - 202 (193) - (193) Total Revenue Bonds and Notes Payable 268,189 195,840 (208,349) 255,681 6,815 248,866 General Obligation Bonds 13,735 - (600) 13,135 625 12,510 Premiums 881 - (141) 740 - 740 Discounts (136) - 10 (126) - (126) Total General Obligation Bonds Payable 14,480 - (731) 13,749 625 13,124 Total Bonds Payable 282,669 195,840 (209,080) 269,430 7,440 261,990 Installment Contracts 59,956 - (3,164) 56,792 3,227 53,566 Landfill Postclosure Liabilities 3,649 65 (362) 3,352 - 3,352 Postemployment Health Care Benefits 0 4,999 0 4,999 30 4,970 Compensated Absences Payable 1,395 237 (139) 1,493 163 1,330 Pension Liabilities 7,802 - (314) 7,488 - 7,488 Total Long-Term Liabilities for Business-Type Activities $ 355,471 $ 201,141 $ (213,058) $ 343,555 $ 10,859 $ 332,696
Internal Service Funds predominantly serve governmental funds. Accordingly, compensated absences of $2.9 million from Internal Service Funds are included in year-end long-term liabilities for governmental activities as of December 31, 2020. The remaining governmental activities liability for compensated absences is generally liquidated by individual governmental funds in which the employees receiving payments are budgeted, most significantly in the General Fund, Roads Fund, and Community Connections Fund. The governmental liability for postemployment health care benefits is liquidated by the General Fund.
67
Maturities of Long-Term Liabilities
A schedule of principal and interest payments for outstanding debt as of December 31, 2020 follows:
Governmental Activities Business-Type Activities General Obligation General Obligation Revenue Debt Bonds Debt (In Thousands) Principal Interest Principal Interest Principal Interest 2021 $ 13,995 $ 5,090 $ 3,852 $ 1,831 $ 6,815 $ 12,321 2022 15,736 4,535 3,941 1,733 6,185 13,062 2023 14,696 3,802 4,042 1,632 1,310 6,499 2024 11,377 3,163 4,139 1,536 1,370 6,439 2025 11,918 2,649 3,860 1,429 2,495 6,371 2026-2030 32,499 6,901 20,594 5,452 57,490 29,148 2031-2035 19,315 2,015 23,608 2,437 64,590 22,073 2036-2040 4,080 106 5,891 137 74,020 12,602 2041-2045 - - - - 34,075 2,237 2046-2050 ------
$ 123,615 $ 28,260 $ 69,926 $ 16,185 $ 248,350 $ 110,752
Refunded Bonds
Limited Term General Obligation Debt Refunded: On October 22, 2020 the county issued $11,380,000 Limited Tax General Obligation refunding bonds (2020 LTGOR) with an average interest rate of 4.00 percent to refund $13,050,000 of outstanding limited tax general obligation Build America bonds with an average interest rate of 5.34 percent. The bonds were issued at a premium of $2,020,410 and, after paying issuance costs of $137,951, the net proceeds were $13,262,459. From the net proceeds of the issuance, $13,260,723 was used to purchase US government securities which were deposited with an escrow agent to provide for all future debt service payments on the refunded bonds until they were called on November 23, 2020. The remaining $1,736 resides in Pierce County’s Debt Service Fund. As a result, the refunded bonds are considered defeased and the liability for those bonds has been removed from the statement of net assets. This advance refunding was undertaken to reduce total debt service payments over the life of the bonds by $1,647,264 and resulted in an economic gain of $1,638,038.
68
Sewer Revenue Debt Refunded: On October 22, 2020 the county issued $31,440,000 Sewer Revenue Refunding Bonds (Tax-Exempt Series 2020A) with an average interest rate of 4.00 percent to refund $40,400,000 of outstanding Sewer Revenue Build America Bonds with an average interest rate of 5.25 percent. The bonds were issued at a premium of $6,440,320 and, after paying issuance costs of $136,695, the net proceeds, along with a contribution of $3,222,172 from the Sewer Debt Service Reserve Fund were $40,965,797. From the available proceeds, $40,964,594 was used to purchase US government securities which were deposited with an escrow agent to provide for all future debt service payments on the refunded bonds until they were called on November 11, 2020. The remaining $1,203 resides in Pierce County’s Sewer Debt Service Fund. As a result, the refunded bonds are considered defeased and the liability for those bonds has been removed from the statement of net assets. This advance refunding was undertaken to reduce total debt service payments over the life of the bonds by $8,572,242 and resulted in an economic gain of $4,986,916.
On October 22, 2020 the county issued $157,960,000 Sewer Revenue Refunding Bonds (Taxable 2020B Series, Green Bonds) with an average interest rate of 2.41 percent to advance refund $156,040,000 of outstanding Sewer Revenue Bonds with an average interest rate of 3.96 percent. The bonds were issued at par and, after paying issuance costs of $626,416, the net proceeds, along with a contribution of $10,809,292 from the Sewer Debt Service Reserve Fund were $168,142,876. From the available proceeds $168,141,640 was used to purchase US government securities which were deposited with an escrow agent to provide for all future debt service payments on the refunded bonds. The remaining $1,236 resides in Pierce County’s Sewer Debt Service Fund. As a result, the refunded bonds are considered defeased and the liability for those bonds has been removed from the statement of net assets. This advance refunding was undertaken to reduce total debt service payments over the life of the bonds by $29,166,938 and resulted in an economic gain of $17,022,984.
69 NOTE 10 ‐ COMMITMENTS
OPERATING LEASES
Pierce County has various operating lease agreements for office facilities and equipment. Agreements provide various annual minimum rental payments due in monthly installments. Total cost of such leases was $1.8 million for governmental activities and $1.15 million for business-type activities in 2020. Future minimum lease payments as of December 31, 2020 are as follows: Governmental Activities Operating Lease Payments (In Thousands) 2021$ 4,541 2022 2,742 2023 2,416 2024 1,653 2025 1,466 2026-2030 - Total$ 12,818
The County leases certain property to various tenants under noncancelable operating lease agreements. For business-type activities, the Airport Fund leases out most of the buildings and grounds to companies in the aviation industry. Certain other land and building space devoted to governmental activities are also leased out under long-term operating leases. A summary of County investment in property under long-term, noncancelable operating leases as of December 31, 2020 follows:
Property Under Long-Term Lease Governmental Business-Type (In Thousands) Activities Activities Total Land$ 2,808 $ 393 $ 3,201 Buildings 4,825 2,121 6,946 Less Depreciation (2,018) (1,404) (3,422) Total Property Leased To Others, Net$ 5,615 $ 1,110 $ 6,725
70 Minimum future lease receipts based on contract amounts and terms as of December 31, 2020 are as follows:
Minimum Lease Receipts Governmental Business-Type (In Thousands) Activities Activities Total 2021 $ 881 $ 508 $ 1,389 2022 583 483 1,066 2023 499 430 929 2024 443 431 873 2025 430 443 874 2026-2030 2 ,019 1,791 3,810 2031-2035 2,015 - 2,015 2036-2040 2 ,008 1,433 3,441 2041-2045 2 ,008 1,589 3,597 2046-2050 2 ,008 1,725 3,732 2051-2055 1 ,654 1,839 3,494 2056-2060 241 1,955 2,196 2061-2065 241 2,153 2,394 Total $ 15,031 $ 14,780 29,810$
CAPITAL PROJECTS
Active County construction projects as of December 31, 2020 include street construction, wastewater treatment system improvements and facility expansion. Capital projects will be funded from undesignated fund balance, general obligation debt, and future revenues. Commitments for capital projects at December 31, 2020 are as follows:
Capital Project Description (In Thousands) County Roads Transportation improvement plan projects $ 26,636 Sewer Utilities System capital improvements 143,299 Airports Runway safety improvements 535 Water programs Capital improvements and services 5,196 Other Various other construction projects 4,708 Total $ 180,374
71 NOTE 11 ‐ NET POSITION AND FUND BALANCES
The difference between assets and liabilities is “Net Position” on the government-wide, proprietary fund, and fiduciary fund financial statements, and is “Fund Balance” on the governmental fund financial statements. Government-wide and proprietary fund statements present net position in three categories: net investment in capital assets; restricted net position; and unrestricted net position. Governmental fund statements report fund balance amounts as nonspendable, restricted, committed, assigned, or unassigned.
RESTRICTED NET POSITION
Restricted net position presented in the government-wide financial statements results when constraints on the use of net assets are stipulated either by external parties or by law through constitutional provisions or enabling legislation. At December 31, 2020, $67 million of $238 million restricted net position on the government-wide statement of net position is restricted by enabling legislation.
FUND BALANCES
The composition of the fund balances (in thousands) for each governmental fund-type for the year ended December 31, 2020 follows:
Special Revenue Debt Service Capital Project Total Governmental (In Thousands) General Fund Funds Funds Funds Funds Nonspendable: Prepaids $ 598 $ 12 $ - $ - $ 610 Total Nonspendable 598 12 - - 610
Restricted for: Acquisition and/or Construction of Capital Equipment and Facilities - - - 74,939 74,939 Citizen's Assistance - 9,249 - - 9,249 Communications, Records and Elections - - - - - Debt - - 7,765 - 7,765 Environmental Protection - 27,373 - - 27,373 Law Enforcement - 7,706 - - 7,706 Parks and Recreation - 4,774 - - 4,774 Road Maintenance - 26,554 - - 26,554 Tourism - 6,723 - - 6,723 Total Restricted - 82,379 7,765 74,939 165,083
Committed for: Administrative Operating Improvements - - - - - Communications, Records and Elections - 57 - - 57 Road Maintenance - 1,480 - - 1,480 Total Committed - 1,537 - - 1,537
Assigned for: Administrative Operating Improvements - 8,171 - - 8,171 Citizen's Assistance - 20,642 - - 20,642 Communications, Records and Elections - 8,291 - - 8,291 Environmental Protection - 24,309 - - 24,309 Law Enforcement - 4,759 - - 4,759 Parks and Recreation - 7,432 - - 7,432 Road Maintenance - 10,841 - - 10,841 Tourism - 1,033 - - 1,033 Total Assigned - 85,478 - - 85,478
Unassigned 136,692 (922) (58) (11) 135,701 Total Fund Balances $ 137,290 $ 168,484 $ 7,707 $ 74,928 $ 388,409
72 NOTE 12 - INTERFUND TRANSACTIONS
Interfund loans and advances at December 31, 2020, consist of the following:
Nonmajor Interfund Loans & Advances Internal Nonmajor Business- (In Thousands) Service Governmental Type Total Interfund Loans Receivable $ 291 $ - $ - $ 291 Interfund Loans Payable - (291) - (291) Total $ 291 $ (291) $ - $ -
The $291K due to Internal Service Funds from Nonmajor Governmental and Nonmajor Business Type Funds is for advances to fund capital projects and to provide working capital during business start-up phases will be repaid in annual payments ratably through 2021.
Interfund balances at December 31, 2020, consist of the following: Interfund Balances Nonmajor Nonmajor (In Thousands) General Fund Governmental Business-Type Total Due From $ 4,126 $ - $ - $ 4,126 Due To - (4,126) - (4,126)
Total $ 4,126 $ (4,126) $ - $ -
Interfund balances result from the time lag between dates that reimbursable expenditures for interfund goods and services occur and when actual payments between funds are recorded in the accounting system and from loans between funds due within 30 days. A $4.1 million loan from General Fund to Nonmajor Governmental and Nonmajor Business Type was made at year end to cover negative fund balances and was repaid in January 2020.
Interfund transfers for the year ended December 31, 2020, were as follows:
Interfund Nonmajor Transfers General Covid Sewer Internal Nonmajor Business- (In Thousands) Fund Roads Relief Act Utility Service Governmental Type Total Transfer In $127,397 $ 408 $ - $ 881 $ 6,821 $ 114,308 $ 4,638 $254,453 Transfer Out (7,161) (18,812) (155,379) (3,189) (526) (68,160) (1,225) (254,453)
Total $ 120,236 $ (18,403) $ (155,379) $ (2,309) $ 6,294 $ 46,148 $ 3,413 $ -
Interfund transfers are routinely used to move revenues from the fund that statute or budget requires to collect them, to the fund that statute or budget requires to expend them.
73
For the year ended December 31, 2020, the following transfers were significant and of a non-routine nature:
$1.2 million from the General Fund to the Behavioral Health Partnership Fund for behavioral health services. $1.2 million from the 911 System Fund to the Combined Communications Network Fund for reduction of rates purposes. $3.3 million from the Second REET Roads Fund to the Public Works Construction Fund to finance capital projects. $4.3 million from the County Road Fund to the General Fund largely for traffic enforcement and personnel movement purposes. $1.2 million from the County Road Fund to the Ferry Services Fund for ferry services and operations purposes. $2.0 million from the Flood Control Zone District Fund to the Surface Water Management Fund for environmental protection purposes. $3.6 million from the Flood Control Zone District Fund to the Flood Control Zone District Opportunity Fund for environmental protection purposes. $5.1 million from the Behavioral Health Partnership Fund to the REET Capital Improvement Fund for the Crisis Recovery Center. $8.6 million from the Real Estate Excise Tax Fund to the REET Capital Improvement Fund for the Crisis Recovery Center. $2.5 million from the Real Estate Excise Tax Fund to the Surface Water Management Construction Fund to finance capital projects. $155 million from the COVID-19 Relief Act Fund to various funds to finance Public Health Emergency Response, Economic Stabilization and Recovery Programs, Community Response and Resilience, and Essential Government Services. $1.4 million from the Sewer Utility Fund to the Chambers Creek Regional Park Fund for the maintenance of parks.
74 NOTE 13 ‐ JOINT VENTURES
During 2020, Pierce County participated with other local governments in one joint venture with the Tacoma-Pierce County Health Department.
Summary financial information is presented below as evidence that the joint venture is not experiencing fiscal stress that may place an additional financial burden on the County in the future. This information represents the most recent financial data.
TACOMA - PIERCE COUNTY HEALTH DEPARTMENT
Tacoma - Pierce County Health Department provides health services to constituents of the City of Tacoma, Pierce County and other cities and towns within the County. The governing board consists of the following: three members of the Pierce County Council, the County Executive, the Mayor, one member of the Council of the City of Tacoma, one member nominated from elected representatives of the other cities and towns, and one member at-large. Funding is provided by all municipalities in the County (based on population and services provided), federal and state grants, city and County licenses and permits, and charges for services. The governing board and legislative bodies of the city and the County are responsible for approving the annual budget. The County is fiscal agent for the joint operation which is accounted for in the County-City Health Pooling Agency Fund. During 2020, Pierce County contributed $2.5 million from the General Fund for operation of the health department. The most recent audited health department financial statements are for the fiscal year ending December 31, 2019, and may be obtained through the Washington State Auditor’s Office website.
2019 audited financial data for the Tacoma - Pierce County Health Department is summarized as follows:
In Thousands Total Assets $ 14,079 Deferred Outflows 10,949 Total Assets & Deferred Outflows 25,028
Total Liablilities 14,580 Deferred Inflows 1,221 Total Liabilities & Deferred Inflows 15,801
Invested Capital Assets 968 Restricted 1,965 Unrestricted 6,294 Total Net Position $ 9,227
Total Revenues $ 34,972 Total Expenditures $ 37,596
75
NOTE 14 ‐ RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; natural disasters; and injuries to employees. The County accounts for self-insurance activities in three Internal Service Funds. The Self-Insurance Fund is used for general risk management losses; the Workers Compensation Fund manages costs of injuries to covered employees; and the Medical Self-Insurance Fund administers medical benefits for certain County employees.
SELF-INSURANCE FUND
General risk management is financed primarily through a program of self-insurance supplemented by several purchased insurance policies. All County departments participate in the program and pay premiums to the fund in interfund transactions. Individual department claims experience is evaluated annually to determine premium rates sufficient to pay prior and current year claims. Insurance is purchased to cover various losses including property damage ($735 million policy limit), watercraft ($175,000 to $700,000 limit), aircraft ($5 million limit), water pollution coverage for Sheriff watercraft ($5 million), airport operations ($40 million limit), non-owned aircraft ($5 million), medical professional liability ($2 million limit), premise pollution liability ($2 million to $5 million limit), fiduciary liability for administration of employee benefit programs ($5 million limit), and performance/honesty bonds/accident coverage for employees and public officials ($50,000 to $600,000 limit). The County also purchases excess liability policies ($18 million aggregate limit) to provide coverage in excess of the self-insured retention limit of $2 million per occurrence.
Liabilities for claims are recorded when it is probable that a loss has occurred, and the amount of loss can be reasonably estimated. Total claims liability is determined based on the estimated ultimate cost of settling all claims net of salvage and subrogation. Factors such as frequency and amount of settlement payments, and inflation are considered when estimating liabilities. Total claims liability excludes non- incremental costs such as administrative and overhead costs that are expensed as incurred over the life of each claim. Total claims liability includes an estimate of claims that have been incurred but not reported (IBNR) and unallocated loss adjustment expenses (ULAE) at the balance sheet date. Accordingly, $4.23 million for IBNR and $117,000 for ULAE, of which $105,300 will be paid within one year and $11,700 is considered long term, of Self-Insurance Fund net assets is designated for such claims.
WORKERS COMPENSATION FUND
Workers’ Compensation benefits are provided to all County departments through a self-insured program certified under the Industrial Insurance Act, Title 51, Revised Code of Washington and is supplemented by an excess loss insurance policy. Benefits are financed by premiums paid to the Workers Compensation Fund as interfund transactions. Premiums are based on various hourly rates for different employee risk classifications. Workers compensation excess loss self-insured liability insurance provides stop-loss coverage (subject to statutory limits) for losses in excess of a self-insured retention limit of $850,000 per occurrence.
76
Liabilities for workers compensation claims are recorded when losses occur and are reported to management. The amount of loss is estimated by the plan administrator based on Washington State Department of Labor and Industries guidelines. Total claims liability includes an estimate of claims that have been incurred but not reported at the balance sheet date. Total claims liability excludes non- incremental costs such as administrative and overhead costs that are expensed as incurred over the life of each claim. Total claims liability is reduced by estimated recoveries from subrogation and stop-loss insurance coverage where estimated claims costs exceed applicable retention limits of stop-loss coverage.
MEDICAL SELF-INSURANCE FUND
Effective January 1, 2011, the County adopted a self-insured medical benefits plan covering a substantial number of County employees. Funding is provided by premium contributions from County departments and employees. The cost of benefits is billed as incurred and paid to the third-party administrator the week following the date of service. The plan is essentially self-funding, with premiums set to recover period costs of the benefits.
Effective January 1, 2020 the County adopted Washington State’s Public Employees Benefits Board (PEBB) administered by Washington State Health Care Authority for a substantial number of County employees which replaced the Medical Self Insurance fund for eligible employees. The transition from Medical Self Insurance to the State PEBB plan decreased amounts held in the Medical Self-Insurance Fund in 2020 and will continue to decrease until the fund has closed out all outstanding claim liabilities.
Revenue and other resources of $1.2, $19.7 and $18.4 million funded program costs including benefit payments and administrator fees totaling $1.6, $15.9, and $14.8 million for the years ended December 31, 2020, 2019, and 2018, respectively.
SELF-INSURED CLAIMS ACTIVITY
A summary of changes in Self-Insurance Fund and Workers Compensation Fund liabilities for estimated claim settlements for the years ended December 31, 2020, 2019 and 2018 follows:
Self-Insurance Workers Compensation (In Thousands) 2020 2019 2018 2020 2019 2018 Balance - Beginning Of Year $ 3,976 $ 7,090 $ 9,767 $ 2,811 $ 899 $ 1,080 Claims Incurred - Current Period 4,531 1,239 821 3,253 2,490 2,063 Changes - Prior Years Estimated Claims 2,353 1,982 1,246 4,204 1,068 1,393 Claim Payments, Net of Recoveries (4,360) (6,335) (4,744) (5,211) (1,646) (3,637) Balance - End Of Year $ 6,500 $ 3,976 $ 7,090 $ 5,057 $ 2,811 $ 899
Estimated To Be Paid Within One Year $ 794 $ 705 $ 4,065 $ 4,619 $ 2,573 $ 809 Estimated Long-Term Portion 5,705 3,271 3,025 439 238 90 Balance - End Of Year $ 6,500 $ 3,976 $ 7,090 $ 5,057 $ 2,811 $ 899
No reductions in self-insurance or workers compensation coverage occurred during 2020. Interfund premiums and insurance coverage have generally been sufficient to fund claims settlement payments over the past three years.
77 NOTE 15 ‐ OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS
The following table represents the aggregate Other Post-Employment Benefits (OPEB) amounts for all plans subject to the requirements of GASB 75 for the year 2020:
Aggregate OPEB Amounts - All Plans (In Thousands)
OPEB Liabilities $ 87,223 OPEB Assets N/A Deferred Outflows of Resources $ 5,516 Deferred Inflows of Resources - OPEB Expenses/Expenditures $ 4,264
The County participates in two plans that provide OPEB to its members. They are the Washington Law Enforcement Officers and Fire Fighters Plan 1 (LEOFF 1) and Public Employee Benefits Board (PEBB). Below is a description of each plan.
Law Enforcement Officers’ and Fire Fighters’ Retirement System Plan 1 (LEOFF 1)
As required by Washington State law (RCW 41.26.150), health care benefits are provided under a defined benefit healthcare plan to certain law enforcement officers. The plan is a single employer benefit plan that is administered by the County to provide benefits for retired full-time law enforcement officers who were members of the Washington Law Enforcement Officers and Fire Fighters Retirement System (LEOFF) prior to October 1, 1977. The plan provides necessary hospital, medical and nursing care expenses not covered by workers compensation, Social Security, or other coverage. The plan provides benefits to a closed group of 73 retirees and one active law enforcement officer. No new participants are permitted. The plan does not include assets accumulated in a qualifying trust.
The following table represents the aggregate OPEB amount for the LEOFF 1 plan which is subject to the requirements of GASB 75 for the year ending December 31, 2020:
Aggregate OPEB Amounts - LEOFF 1 (In Thousands)
OPEB Liabilities $ 34,524 OPEB Assets N/A Deferred Outflows of Resources $ 185 Deferred Inflows of Resources N/A OPEB Expenses/Expenditures $ 2,102
Employees covered by benefit terms: At December 31, 2020, the following employees were covered by the benefit terms:
78 Employees Covered by Benefit Terms (LEOFF 1) At December 31, 2020
Inactive employees or beneficiaries currently receiving benefits 73 Active employees 1 Total 74
The County used the alternative measurement method permitted under GASB Statement No. 75. Therefore, the LEOFF 1 GASB Reporting AAM Online Tool developed by the Washington State Actuary was used to calculate the OPEB liability.
Methodology (LEOFF 1)
Actuarial Valuation Date 6/30/2020 Actuarial Measurement Date 6/30/2020 Actuarial Cost Method Entry Age Amortization Method Recognized Immediately Asset Valuation Method N/A (No Assets)
Specific assumptions made by the State Actuary when developing this tool included the following:
Assumed any remaining active members will retire immediately following the measurement date. o This simplifying assumption was made considering that over 99 percent of LEOFF 1 members are already retired and the remaining members are eligible to retire. o This approach inherently assumes that all liabilities are fully earned and the Service Cost equals zero. In other words, the Entry Age Normal total OPEB Liability is by definition equal to the Present Value of Future Benefits. Further, the State Actuary implicitly does not need to make an assumption with respect to Projected Salary Changes. Each cohort is assumed to be 100 percent male. o As of the measurement date, greater than 98 percent of the eligible LEOFF 1 population is male. For purposes of the AAM Online Tool, the State Actuary believes this simplification is reasonable and note that it only impacts the mortality assumptions selected. This assumption will continue to be monitored for future versions of the online tool. The State Actuary selected four age-based cohorts for the AAM Online Tool based upon the overall distribution of the LEOFF 1 eligible population. The State Actuary believes this grouping approach is reasonable for the purposes of the AAM. Medical and long-term care costs were projected from June 30, 2018 to the measurement date of June 30, 2020 using the healthcare trend rates detailed in the 2018 LEOFF 1 Medical Benefits Actuarial Valuation Report.
The total OPEB Liability of Pierce County calculated using the discount rate of 3.50 percent for the beginning of the measurement year and 2.21 percent at the end of the measurement year. In addition, the total liability is calculated using the current healthcare cost trend rate of 6 percent. The following presents the total liability using the current rates as well as what the rates would be if they were calculated using a rate that is 1-percentage point lower or 1-percentage point higher than the current rates.
79 Sensitivity Analysis (LEOFF 1) (In Thousands)
Total OPEB Liability 1% Decrease Current 1% Increase Discount Rate $ 38,281 $ 34,524 $ 31,306 Healthcare Trend $ 31,480 $ 34,524 $ 37,990
Changes in Total OPEB Liability (LEOFF 1) Measurment Date of June 30, 2020 (In Thousands)
Total OPEB Liability Balance at 12/31/2019 $ 33,130 Changes for the year: Service Cost - Interest 1,129 Changes in Benefit Terms - Difference in Experience Data and Assumptions 2,048 Benefit Payments (1,783) Other Changes - Net Changes 1,394
Balance at 12/31/2020 $ 34,524
At December 31, 2020 the County reported deferred outflows of resources related to OPEB from the following sources:
Deferred Outflows of Resources (LEOFF 1) (In Thousands)
Differences between expected and actual experience $ - Changes of Assumptions - Payments subsequent to the measurement date 185 Total $ 185
80 Public Employees Benefits Board (PEBB)
Effective January 1, 2020 the County adopted Washington State’s Public Employees Benefits Board (PEBB) administered by Washington State Health Care Authority. Eligible retirees and spouses are entitled to subsidies associated with post-employment medical benefits provided through PEBB. Per RCW 41.05.065 the PEBB was created within the Washington State Health Care Authority to administer medical, dental, and life insurance plans for public employees and retirees.
The subsidies provided by PEBB and valued in the actuarial report include explicit medical subsidy for post-65 retirees and spouses, implicit medical subsidy and implicit dental subsidy.
The following table represents the aggregate OPEB amount for the PEBB plan which is subject to the requirements of GASB 75 for the year ending December 31, 2020:
Aggregate OPEB Amounts - PEBB (In Thousands)
OPEB Liabilities $ 52,699 OPEB Assets N/A Deferred Outflows of Resources $ 5,331 Deferred Inflows of Resources - OPEB Expenses/Expenditures $ 2,162
Employees covered by benefit terms: At December 31, 2020, the following employees were covered by the benefit terms:
Employees Covered by Benefit Terms (PEBB) At December 31, 2020
Inactive employees or beneficiaries currently receiving benefits 95 Active employees 1,300 Total 1,395
81 Assumptions:
The total liability was determined using the following methodologies:
Methodology (PEBB)
Actuarial Valuation Date 6/30/2020 Actuarial Measurement Date 6/30/2020 Actuarial Cost Method Entry Age Amortization Method Recognized Immediately Asset Valuation Method N/A (No Assets)
The total OPEB Liability of Pierce County is also calculated using the discount rate of 2.74 percent for the beginning of the measurement year and 2.21 percent at the end of the measurement year.
Inflation Rate 2.75% 3.50%, plus service-based Projected salary/wage growth salary increases Initial Rate is 6.1% and trends down to 4.3% by Healthcare cost trend rate 2096
Post-retirement participation percentage 65% Percentage with spouse coverage 45% Medicare Coverage Assumption 100%
Health Cost Trend The health cost trend assumptions used in this valuation were developed by the actuary for use in the forthcoming 2020 OPEB valuation for the PEBB Program, performed by the Office of the State Actuary.
Dental Cost Trend 2.00% for the year ending June 30, 2021, 2.50% for the year ending June 30, 2022, 3.50% for the year ending June 30, 2023, 4.00% for the year ending June 30, 2024, 4.00% for the year ending June 30, 2025, and 4.0% per year thereafter.
Rationale: Medical and Dental Cost Trends are based on the actuary’s trend models and the actuary’s dental Health Cost Guidelines and are consistent with assumptions used by the Office of the State Actuary for PEBB.
Salary Assumptions Even though the benefits are not based upon pay, salary assumptions are necessary for the actuarial cost method. These assumptions are for promotion and longevity and reflect the assumptions used in the 2019 actuarial valuation for the Washington State Retirement Systems.
Demographic Assumptions Demographic assumptions regarding retirement, mortality, disability mortality, turnover, and marriage are based on assumptions used in the 2019 actuarial valuation for the Washington State retirement systems and modified for Pierce County.
82 For mortality, the actuary used the assumptions from the 2019 actuarial valuation for the Washington State retirement systems, adjusted for Pierce County. For healthy PERS members, the actuary used the PubG.H-2010 base mortality table with generational mortality adjustments using the long-term MP-2017 generational improvement scale. For healthy PSERS members, the actuary used the PubS.H- 2010 base mortality table with generational mortality adjustments using the long-term MP-2017 generational improvement scale. For healthy LEOFF members, the actuary used the PubS.H-2010 base mortality table, with a one year setback for males and no setback for females, with generational mortality adjustments using the long-term MP-2017 generational improvement scale. For disabled LEOFF members, the actuary used the PubS.H-2010 disabled base mortality rates consistent with the 2019 actuarial valuation for the Washington State retirement systems.
For other termination of employment, the actuary used the assumptions by plan from the 2019 actuarial valuation for the Washington State retirement systems.
Sensitivity Analysis (PEBB) (In Thousands)
Total OPEB Liability 1% Decrease Current 1% Increase Discount Rate $ 65,236 $ 52,699 $ 43,013
Healthcare Trend $ 41,386 $ 52,699 $ 68,109
As of December 31, 2020, Pierce County reported a total OPEB Liability of $52,699,332. The following table presents the change in the total OPEB Liability as of the measurement date:
Changes in Total OPEB Liability (PEBB) Measurement Date of June 30, 2020 (In Thousands)
Total OPEB Liability Balance at 12/31/2019 $ 45,206 Changes for the year: Service Cost 1,545 Interest 635 Changes in Benefit Terms - Difference in Experience Data and Assumptions 5,438 Benefit Payments (126) Other Changes - Net Changes 7,493
Balance at 12/31/2020 $ 52,699
At December 31, 2020 the County reported deferred outflows of resources related to OPEB from the following sources:
83 Deferred Outflows of Resources (PEBB) (In Thousands)
Differences between expected and actual experience - Changes of Assumptions 5,174 Payments subsequent to the measurement date 156 Total $ 5,331
Deferred outflows of resources of $156,000 resulting from payments subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Measurement Period Ending June 30: (In Thousands) 2021 $ 528 2022 528 2023 528 2024 528 2025 528
Thereafter $ 2,534
One Time Special Item – PEBB Implementation GASB Statement No.34, Basic Financial Statements-and Management’s Discussion and Analysis- for State and Local Governments, defines Special Items as significant transactions or other events within the control of management that are either unusual in nature or infrequent in occurrence. With the change to PEBB, the County is recognizing $45,206,262 as a one-time Special Item in the reporting year. This is identified as the PEBB balance as of December 31, 2019 per the actuarial report.
84 NOTE 16 – EMPLOYEE RETIREMENT SYSTEMS AND PLANS
The following table represents the aggregate pension amounts for all plans for the year 2020:
Aggregate Pension Amounts - All Plans (In Thousands) Pension liabilities $ (74,545) Pension assets $ 25,299 Deferred outflows of resources $ 30,351 Deferred inflows of resources $ (30,763) Pension expense/expenditures $ 1,196
STATE SPONSORED PENSION PLANS
Substantially all Pierce County’s 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 state Legislature establishes, and amends, laws pertaining to the creation and administration of all public retirement systems.
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 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees of the legislature; employees of district and municipal courts; employees of local governments; and higher education employees not participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution component.
85 PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the member’s 24 highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer contribution rate is developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1 required contribution rates (expressed as a percentage of covered payroll) for 2020 were as follows:
PERS Plan 1 Actual Contribution Rates Employer Employee* January – August 2020: PERS Plan 1 7.92% 6.00% PERS Plan 1 UAAL 4.76% Administrative Fee 0.18% Total 12.86% 6.00% September - December 2020: PERS Plan 1 7.92% 6.00% PERS Plan 1 UAAL 4.87% Administrative Fee 0.18% Total 12.97% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap on years of service credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and are 55 years of age or older, are eligible for early retirement with a benefit that is reduced by a factor that varies according to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can retire under one of two provisions:
With a benefit that is reduced by three percent for each year before age 65; or With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules.
86 PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five percent for each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and Industries. PERS 2 members are vested after completing five years of eligible service. 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 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution rates (expressed as a percentage of covered payroll) for 2020 were as follows:
PERS Plan 2/3 Actual Contribution Rates Employer 2/3 Employee 2* January – August 2020: PERS Plan 2/3 7.92% 7.90% PERS Plan 1 UAAL 4.76% Administrative Fee 0.18% Employee PERS Plan 3 varies Total 12.86% 7.90% September – December 2020: PERS Plan 2/3 7.92% 7.90% PERS Plan 1 UAAL 4.87% Administrative Fee 0.18% Employee PERS Plan 3 Varies Total 12.97% 7.90%
* For employees participating in JBM, the contribution rate was 19.75%
Pierce County’s actual PERS plan contributions were $11.3 million to PERS Plan 1 and $16.6 million to PERS Plan 2/3 for the year ended December 31, 2020.
87 PUBLIC SAFETY EMPLOYEES’ RETIREMENT SYSTEM (PSERS)
PSERS Plan 2 was created by the 2004 Legislature and became effective July 1, 2006. To be eligible for membership, 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 membership includes:
PERS 2 or 3 employees hired by a covered employer before July 1, 2006, who met at least one of the PSERS eligibility criteria and elected membership during the period of July 1, 2006 to September 30 2006; and Employees hired on or after July 1, 2006 by a covered employer, that meet at least one of the PSERS eligibility criteria.
PSERS covered employers include:
Certain State of Washington agencies (Department of Corrections, Department of Natural Resources, Gambling Commission, Liquor Control Board, Parks and Recreation Commission, and Washington State Patrol), Washington State Counties, Washington State Cities (except for Seattle, Spokane, and Tacoma), Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
PSERS Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the average final compensation (AFC) for each year of service. The AFC is based on the member’s 60 consecutive highest creditable months of service. Benefits are actuarially reduced for each year that the member’s age is less than 60 (with ten or more service credit years in PSERS), or less than 65 (with fewer than ten service credit years). There is no cap on years of service credit. Members are eligible for retirement 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; or at age 53 with 20 years of service. Retirement before age 60 is considered an early retirement. PSERS 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. PSERS Plan 2 retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of living adjustment (COLA), and a one-time duty- related death benefit, if found eligible by the Department of Labor and Industries. PSERS Plan 2 members are vested after completing five years of eligible service.
Contributions
The PSERS Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2. The Plan 2 employer rates include components to address the PERS Plan 1 unfunded actuarial accrued liability and administrative expense currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates.
88 The PSERS Plan 2 required contribution rates (expressed as a percentage of current-year covered payroll) for 2020 were as follows:
PSERS Plan 2 Actual Contribution Rates Employer Employee January – August 2020: PSERS Plan 2 7.20% 7.20% PERS Plan 1 UAAL 4.76% Administrative Fee 0.18% Total 12.14% 7.20% September – December 2020 PSERS Plan 2 7.20% 7.20% PERS Plan 1 UAAL 4.87% Administrative Fee 0.18% Total 12.25% 7.20%
Pierce County’s actual contributions to the plan were $1.7 million for the year ended December 31, 2020.
LAW ENFORCEMENT OFFICERS’ AND FIRE FIGHTERS’ RETIREMENT SYSTEM (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service calculated as a percent of final average salary (FAS) as follows:
20+ years of service – 2.0% of FAS 10-19 years of service – 1.5% of FAS 5-9 years of service – 1% of FAS
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. Members are eligible for retirement with five years of service at the age of 50. Other benefits include duty and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2020. Employers paid only the administrative expense of 0.18 percent of covered payroll.
89 LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the final average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are eligible for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of 53 receive reduced benefits. 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. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries. LEOFF 2 members are vested after the completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund Plan 2. The employer rate includes an administrative expense component set at 0.18 percent. Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board.
Effective July 1, 2017, when a LEOFF employer charges a fee or recovers costs for services rendered by a LEOFF 2 member to a non-LEOFF employer, the LEOFF employer must cover both the employer and state contributions on the LEOFF 2 basic salary earned for those services. The state contribution rate (expressed as a percentage of covered payroll) was 3.44% in 2020.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2020 were as follows:
LEOFF Plan 2 Actual Contribution Rates Employer Employee January – December 2020 State and local governments 5.15% 8.59% Administrative Fee 0.18% Total 5.33% 8.59% Ports and Universities 8.59% 8.59% Administrative Fee 0.18% Total 8.77% 8.59%
Pierce County’s actual contributions to the plan were $2.0 million for the year ended December 31, 2020.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state constitution and could be changed by statute. For the state fiscal year ending June 30, 2020, the state contributed $76.3 million to LEOFF Plan 2. The amount recognized by the County as its proportionate share of this amount is $1.3 million.
90 ACTUARIAL ASSUMPTIONS
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed in 2020 with a valuation date of June 30, 2019. The actuarial assumptions used in the valuation were based on the results of the Office of the State Actuary’s (OSA) 2013-2018 Experience Study and the 2019 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2019 actuarial valuation report. The TPL was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2020. Plan liabilities were rolled forward from June 30, 2019, to June 30, 2020, reflecting each plan’s normal cost (using the entry-age cost method), assumed interest and actual benefit payments.
• Inflation: 2.75% total economic inflation; 3.50% salary inflation • Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also expected to grow by promotions and longevity. • Investment rate of return: 7.4%
Mortality rates were developed using the Society of Actuaries’ Pub. H-2020 mortality rates, which vary by member status, as the base table. The OSA applied age offsets for each system, as appropriate, to better tailor the mortality rates to the demographics of each plan. OSA applied the long-term MP-2017 generational improvement scale, also developed by the Society Actuaries, to project mortality rates for every year after the 2010 base table. Mortality rates are applied on a generational basis; meaning, each member is assumed to receive additional mortality improvements in each future year throughout his or her lifetime.
There were changes in methods and assumptions since the last valuation.
OSA updated its demographic assumptions based on the results of its latest demographic experience study. See OSA’s 2013-2018 Demographic Experience Study at leg.wa.gov/osa. OSA updated the Early Retirement Factors and Joint-and-Survivor factors used in its model to match the ones implemented by DRS on October 1, 2020. These factors are used to value benefits for members who elect to retire early and for survivors of members that die prior to retirement. The valuation includes liabilities and assets for Plan 3 members purchasing Total Allocation Portfolio annuities when determining contribution rates and funded status. OSA simplified its modeling of medical premium reimbursements for survivors of duty-related deaths in LEOFF 2. OSA changed its method of updating certain data items that change annually, including the public safety duty-related death lump sum and Washington state average wage. OSA set these values at 2018 and will project them into the future using assumptions until the next Demographic Experience Study in 2025. See leg.wa.gov/osa for more information on this method change.
91 DISCOUNT RATE
The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent.
To determine that rate, an asset sufficiency test was completed to test whether each pension plan’s fiduciary net position was sufficient to make all projected future benefit payments for current plan members. Based on OSA’s assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long- term expected rate of return of 7.4 percent was used to determine the total liability.
LONG-TERM EXPECTED RATE OF RETURN
The long-term expected rate of return on the DRS pension plan investments of 7.4 percent was determined using a building-block-method. In selecting this assumption, the Office of the State Actuary (OSA) reviewed the historical experience data, considered the historical conditions that produced past annual investment returns, and considered Capital Market Assumptions (CMA’s) and simulated expected investment returns provided by the Washington State Investment Board (WSIB). The WSIB uses the Capital Market Assumptions (CMA’s) and their target asset allocation to simulate future investment returns at various future times.
ESTIMATED RATES OF RETURN BY ASSET CLASS
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2020, are summarized in the table below. The inflation component used to create the table is 2.2 percent and represents the WSIB’s most recent long-term estimate of broad economic inflation.
Asset Class Target % Long-Term Expected Real Allocation Rate of Return Arithmetic Fixed Income 20% 2.20% Tangible Assets 7% 5.10% Real Estate 18% 5.80% Global Equity 32% 6.30% Private Equity 23% 9.30% 100%
SENSITIVITY OF THE NET PENSION LIABILITY/(ASSET)
The table below presents Pierce County’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.4 percent, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.4 percent) or 1-percentage point higher (8.4 percent) than the current rate.
92 Current 1% Decrease Discount Rate 1% Increase (In Thousands) (6.4%) (7.4%) (8.4%) PERS 1 $ 65,962 $ 52,662 $ 41,063 PERS 2/3 136,166 21,884 (72,228) PSERS 2 5,729 (526) (5,477) LEOFF 1 (3,208) (3,942) (4,576) LEOFF 2 (412) (20,831) (37,549) TOTAL $ 204,237 $ 49,247 $ (78,768)
PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS financial report.
PENSION LIABILITIES (ASSETS), PENSION EXPENSE, AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RELATED TO PENSIONS
At June 30, 2020, Pierce County reported a total pension liability of $74.5 million for its proportionate share of the net pension liabilities as follows:
(In Thousands) Liability PERS 1$ 52,662 PERS 2/3 21,884 $ 74,545
At June 30, 2020, Pierce County reported a total pension asset of $25.3 million for its proportionate share of the net pension asset as follows:
(In Thousands) Assets LEOFF 1$ (3,942) LEOFF 2 (20,831) PSERS 2 (526) $ (25,299)
The amount of the asset reported above for LEOFF Plans 1 and 2 reflects a reduction for State pension support provided to the County. The amount recognized by the County as its proportionate share of the net pension asset, the related State support, and the total portion of the net pension asset that was associated with the County were as follows:
(In Thousands) LEOFF 1 LEOFF 2 Employer’s proportionate share $ 3,942 $ 20,831 State’s proportionate share of the net pension asset associated with the employer 26,661 13,320 $ 30,603 $ 34,151
93 At June 30, the County’s proportionate share of the collective net pension liabilities was as follows:
Proportionate Proportionate (Increase) / Share Share Decrease in 6/30/2019 6/30/2020 Proportion
PERS 1 1.5999% 1.4916% 0.1083% PERS 2/3 1.8051% 1.7111% 0.0940% PSERS 2 5.1633% 3.8248% 1.3385% LEOFF 1 0.2132% 0.2087% 0.0045% LEOFF 2 0.9780% 1.0212% -0.0432%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis for determining each employer’s proportionate share of the collective pension amounts reported by the DRS in the Schedules of Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through 2000 and the retirement benefit payments in fiscal year 2020. Historical data was obtained from a 2011 study by the Office of the State Actuary (OSA). In fiscal year 2020, the state of Washington contributed 87.12 percent of LEOFF 1 employer contributions and all other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully funded and no further employer contributions have been required since June 2000. If the plan becomes underfunded, funding of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected long-term contribution effort based on historical data.
In fiscal year 2020, the state of Washington contributed 39 percent of LEOFF 2 employer contributions pursuant to RCW 41.26.725 and all other employers contributed the remaining 61 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2020, and the actuarial valuation date on which the total pension liability (asset) is based was as of June 30, 2019, with update procedures used to roll forward the total pension liability to the measurement date.
PENSION EXPENSE
For the year ended December 31, 2020, the County recognized pension expense as follows:
(In Thousands) Pension Expense PERS 1 $ (1,869) PERS 2/3 1,217 PSERS 2 1,174 LEOFF 1 (124) LEOFF 2 797 TOTAL $ 1,195
94 DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES
At December 31, 2020, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
PERS 1 Deferred Outflows Deferred Inflows (In Thousands) of Resources of Resources
Net difference between projected and actual investment earnings on pension plan investments $ - $ (293) Contributions subsequent to the measurement date 5,895 - TOTAL $ 5,895 $ (293)
PERS 2/3 Deferred Outflows Deferred Inflows (In Thousands) of Resources of Resources
Differences between expected and actual experience $ 7,834 $ (2,743) Net difference between projected and actual investment earnings on pension plan investments - (1,111) Change in Assumptions 312 (14,948) Changes in proportion and differences between contributions and proportionate share of contributions 1,551 (5,414) Contributions subsequent to the measurement date 8,619 - TOTAL $ 18,316 $ (24,216)
PSERS 2 Deferred Outflows Deferred Inflows (In Thousands) of Resources of Resources
Differences between expected and actual experience $ 723 $ (39) Net difference between projected and actual investment earnings on pension plan investments 28 - Change in Assumptions 3 (995) Changes in proportion and differences between contributions and proportionate share of contributions 29 (163) Contributions subsequent to the measurement date 865 - TOTAL $ 1,648 $ (1,197)
LEOFF 1 Deferred Outflows Deferred Inflows (In Thousands) of Resources of Resources
Net difference between projected and actual investment earnings on pension plan investments $ - $ (41) TOTAL $ - $ (41)
95 LEOFF 2 Deferred Outflows Deferred Inflows (In Thousands) of Resources of Resources
Differences between expected and actual experience $ 2,882 $ (369) Net difference between projected and actual investment earnings on pension plan investments - (232) Change in Assumptions 30 (3,226) Changes in proportion and differences between contributions and proportionate share of contributions 570 (1,189) Contributions subsequent to the measurement date 1,009 - TOTAL $ 4,491 $ (5,016)
Deferred outflows of resources related to pensions resulting from the County’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
For the Year Ended December 31, 2020 (In Thousands)
PERS 1 PERS 2/3 PSERS 2 LEOFF 1 LEOFF 2
2021 $ (1,331) $ (9,737) $ (163) $ (147) $ (1,561) 2022 (42) (2,827) (57) (8) (287) 2023 406 (267) 27 42 228 2024 673 997 107 72 616 2025 - (1,284) (55) - (221) Thereafter - (1,402) (283) - (309) TOTAL $ (294) $ (14,520) $ (424) $ (41) $ (1,534)
96 NOTE 17 ‐ CONTINGENCIES
SOLID WASTE MANAGEMENT LANDFILL RESERVE FUNDS
The County has contracted with Pierce County Recycling, Composting, and Disposal, LLC (PCRCD) to provide postclosure maintenance for the two County landfills now closed. Prior to closure of both landfills, PCRCD had operated the landfills and collected landfill user fees in trust sufficient to fund current postclosure care costs. Interest earnings on restricted investments will fund any future cost increases due to inflation. However, should interest earnings not be sufficient or should future postclosure care costs increase because of changes in technology or regulations, any additional costs may be funded by charges to future landfill users or paid from future County tax revenue.
FEDERAL AND STATE GRANTS
The County receives certain federal and state grant funding for specific purposes. Use of such funding is subject to examination by the state auditor. In accordance with terms of the grant agreements, grantors could request reimbursement of disallowed expenditures should any be disclosed during an audit. Based on prior experience, the County believes that such disallowance, if any, would be immaterial.
LITIGATION
Several lawsuits and claims are pending which involve the County. Any potential material losses from such suits and claims are included in estimated claims liabilities of the Self-Insurance Fund. Based on recommendations of legal counsel, the County has provided amounts for potential liabilities which management considers sufficient to cover any material uninsured losses that may arise from such claims.
97 NOTE 18 ‐ SUBSEQUENT EVENTS
In January 2021, the United States Department of the Treasury began distribution of Emergency Rental Assistance Program as authorized by the United States Congress as part of its response to the COVID- 19 pandemic. Nationally, this program provides $25 billion to qualifying households that are unable to pay rent and utilities . Funds are provided directly to States, U.S. Territories, local governments, and Indian tribes. The County’s initial allocation from this program was $20.7 million, received in March 2021. These funds will be distributed according to eligibility requirements set forth in federal law and pursuant to guidance from the Treasury Department.
Congress passed the American Rescue Plan Act (ARP) that was enacted March 11, 2021. Among other actions, ARP provides $350 billion in emergency funding for state, local, territorial, and Tribal governments to respond to the COVID-19 public health emergency or its negative economic impacts. The County expects to receive $175 million from ARP – split between two annual installments – as well as additional funding for Emergency Rental Assistance. These funds are intended to provide emergency assistance, public health services, and economic relief for individuals, families, and businesses affected by the COVID-19 pandemic.
98 NOTE 19 ‐ COVID-19 PANDEMIC
In February 2020, the Governor of the state of Washington declared a state of emergency in response to the rapidly spreading deadly new virus referred to as COVID-19. In the months following the declaration, precautionary measures to slow the spread of the virus were ordered. These measures included closing schools, canceling public events, limiting public and private gatherings, and restricting business operations, travel and non-essential activities.
In response to this event, the County Executive issued an Emergency Declaration in March 2020 in which he asked County employees to work remotely to the greatest extent possible. Employees are encouraged to telework to the greatest extent possible through June 30, 2021. As a result, several departments have sharply limited the number of staff working in County facilities, and some County services have been placed on hold. Meanwhile, the County implemented several programs to assist individuals and businesses in the County that are experiencing economic injury due to the COVID-19 pandemic.
In April 2020, the County received Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funds in the amount of approximately $158 million. These funds are intended to be used for providing emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.
Similar to other jurisdictions across the United States, the length of time these measures will continue to be in place, and the full extent of the financial impact on the County is unknown at this time.
99 NOTE 20 ‐ PRIOR PERIOD ADJUSTMENTS
During the fiscal year ended December 31, 2020 a prior period adjustment was made to the Custodial Funds to correct classifications of certain transactions on the financial statements. It was determined that a ledger account balance reported as a liability in the prior year should have been reported as an expenditure. The erroneous liability balance was rolled into net position to begin 2020. The 2020 activity in this ledger is now correctly reported as an expenditure. The prior period adjustment establishes the proper beginning net position and the ending net position for these funds as a result of the reporting correction.
Statement of Changes in Fiduciary Net Position:
Net Position Net Position Prior Period 1/1/2020 Change in Net Net Position (In Thousands) 1/1/2020 Adjustment (Adjusted) Position 12/31/2020 Cusodial Funds 29,924 (1,164,843) (1,134,919) 117,703 (1,017,216)
Combining Statement of Changes in Fiduciary Net Position:
Net Position Net Position Prior Period 1/1/2020 Change in Net Net Position (In Thousands) 1/1/2020 Adjustment (Adjusted) Position 12/31/2020 Fire District Funds 119,963 (109,980) 9,983 8,636 18,618 Miscellaneous District Funds 6,261 18,816 25,077 (17,767) 7,309 Pierce County Library Funds 50,484 (31,970) 18,514 (16,359) 2,155 Park District Funds 17,096 (39,039) (21,943) 27,286 5,343 School District Funds (104,191) (988,407) (1,092,598) 149,348 (943,250) Sewer District Funds 322 177 499 21 521 Tacoma/Pierce County Health Department Fund (47,628) (14,878) (62,506) (31,253) (93,759) Water District Funds (18,813) 438 (18,375) (4,276) (22,651)
100 REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Changes in Total OPEB Liability and Related Ratios LEOFF 1 For the year ended June 30, 2020 Last 10 Fiscal Years* (In Thousands)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Total OPEB liability - beginning $ 42,959 $ 41,535 $ 33,130 Service cost - - - Interest 1,509 1,569 1,129 Changes in benefit terms - - - Differences between expected and actual experience (1,287) (7,959) 2,049 Changes of assumptions - - -
101 Benefit payments (1,646) (2,015) (1,783) Other changes Total OPEB liability - ending $ 41,535 $ 33,130 $ 34,525
Covered-employee payroll 157 172 170
Total OPEB liability as a % of covered payroll 26407.05% 19295.28% 20339.81%
Notes to Schedule: * Until a full 10-year trend is compiled, only information for those years available is presented. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Changes in Total OPEB Liability and Related Ratios PEBB For the year ended June 30, 2020 Last 10 Fiscal Years* (In Thousands)
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Total OPEB liability - beginning $ 45,206 Service cost 1,545 Interest 635 Changes in benefit terms - Differences between expected and actual experience - 102 Changes of assumptions 5,438 Benefit payments (126) Other changes - Total OPEB liability - ending $ 52,699
Covered-employee payroll 119,065
Total OPEB liability as a % of covered payroll 44.26%
Notes to Schedule: * Until a full 10-year trend is compiled, only information for those years available is presented. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Proportionate Share of the Net Pension Liability Public Employees' Retirement System Plan 1 As of June 30, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Employer's proportion of the net pension liability (asset) % 1.759320% 1.658734% 1.722775% 1.600167% 1.599949% 1.491600%
Employer's proportionate share of the net pension liability $ 92,029 89,082 81,747 71,464 61,524 52,662
Covered payroll* $ 180,389 176,480 193,124 189,452 198,126 200,777
Employer's proportionate share of the net pension liability as a percentage of covered payroll % 51.02% 50.48% 42.33% 37.72% 31.05% 26.23%
Plan fiduciary net position as a percentage of the total pension liability % 59.10% 57.03% 61.24% 63.22% 67.12% 68.64% 103
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Proportionate Share of the Net Pension Liability Public Employees' Retirement System Plans 2 & 3 As of June 30, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Employer's proportion of the net pension liability (asset) % 1.989176% 1.859455% 1.936556% 1.802422% 1.805125% 1.711080%
Employer's proportionate share of the net pension liability $ 71,074 93,622 67,286 30,775 17,534 21,884
Covered payroll* $ 176,506 173,256 189,726 186,958 196,298 199,459
Employer's proportionate share of the net pension liability as a percentage of covered payroll % 40.27% 54.04% 35.46% 16.46% 8.93% 10.97%
Plan fiduciary net position as a percentage of the total pension liability % 89.20% 85.82% 90.97% 95.77% 97.77% 97.22% 104
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Proportionate Share of the Net Pension Liability Public Safety Employees' Retirement System Plan 2 As of June 30, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Employer's proportion of the net pension liability (asset) % 5.619492% 5.381027% 5.529473% 5.097570% 5.163311% 3.824832%
Employer's proportionate share of the net pension liability (asset) $ 1,026 2,287 1,083 63 (671) (526)
Covered payroll* $ 16,455 17,434 19,577 19,995 23,831 23,486
Employer's proportionate share of the net pension liability as a percentage of covered payroll % 6.23% 13.12% 5.53% 0.32% -2.82% -2.24%
Plan fiduciary net position as a percentage of the total pension liability % 95.08% 90.41% 96.26% 99.79% 101.85% 101.68% 105
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Proportionate Share of the Net Pension Asset Law Enforcement Officers' and Firefighters Retirement System Plan 1 As of June 30, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Employer's proportion of the net pension liability (asset) % 0.221236% 0.217888% 0.216165% 0.217343% 0.213178% 0.208718%
Employer's proportionate share of the net pension asset $ (2,666) (2,245) (3,280) (3,946) (4,214) (3,942)
Covered payroll* $000000
Employer's proportionate share of the net pension liability as a percentage of covered payroll % N/A N/A N/A N/A N/A N/A
Plan fiduciary net position as a percentage of the total pension liability % 127.36% 123.74% 135.96% 144.42% 148.78% 146.88% 106
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Proportionate Share of the Net Pension Asset Law Enforcement Officers' and Firefighters Retirement System Plan 2 As of June 30, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Employer's proportion of the net pension liability (asset) % 0.976557% 0.932437% 1.006497% 1.021644% 0.977994% 1.021183%
Employer's proportionate share of the net pension asset $ (10,037) (5,423) (13,967) (20,742) (22,657) (20,831)
State's proportionate share of the net pension liability (asset) associated with the employer $ 946 930 1,031 1,147 1,181 1,277
TOTAL $ (9,091) (4,493) (12,936) (19,595) (21,476) (19,553)
Covered payroll* $ 28,344 28,247 31,485 31,890 32,470 36,903 107 Employer's proportionate share of the net pension liability as a percentage of covered payroll % -35.41% -19.20% -44.36% -65.04% -69.78% -56.45%
Plan fiduciary net position as a percentage of the total pension liability % 111.67% 106.04% 113.36% 118.50% 119.43% 115.83%
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Employer Contributions Public Employees' Retirement System Plan 1 For the year ended December 31, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Statutorily or contractually required contributions $ 8,949 9,841 10,378 11,102 11,098 11,332
Contributions in relation to the statutorily or contractually required contributions* $ (8,949) (9,841) (10,378) (11,102) (11,098) (11,332)
Contribution deficiency (excess) $000 000
Covered payroll* $ 182,777 183,541 188,674 193,654 198,683 210,597
Contributions as a percentage of covered payroll % 4.90% 5.36% 5.50% 5.73% 5.59% 5.38% 108
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Employer Contributions Public Employees' Retirement System Plans 2 & 3 For the year ended December 31, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Statutorily or contractually required contributions $ 10,038 11,243 12,646 14,353 15,193 16,588
Contributions in relation to the statutorily or contractually required contributions* $ (10,038) (11,243) (12,646) (14,353) (15,193) (16,588)
Contribution deficiency (excess) $000 000
Covered payroll* $ 179,171 180,326 185,625 191,495 197,218 209,471
Contributions as a percentage of covered payroll % 5.60% 6.23% 6.81% 7.50% 7.70% 7.92% 109
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Employer Contributions Public Safety Employees' Retirement System Plan 2 For the year ended December 31, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Statutorily or contractually required contributions $ 1,133 1,215 1,291 1,548 1,632 1,720
Contributions in relation to the statutorily or contractually required contributions* $ (1,133) (1,215) (1,291) (1,548) (1,632) (1,720)
Contribution deficiency (excess) $000 000
Covered payroll* $ 17,505 18,444 19,380 22,663 22,884 23,898
Contributions as a percentage of covered payroll % 6.47% 6.59% 6.66% 6.83% 7.13% 7.20% 110
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available REQUIRED SUPPLEMENTARY INFORMATION
Pierce County Schedule of Employer Contributions Law Enforcement Officers' and Firefighters Retirement System Plan 2 For the year ended December 31, 2020 Last 10 Fiscal Years* (In Thousands)
2015 2016 2017 2018 2019 2020 20XX 20XX 20XX 20XX
Statutorily or contractually required contributions $ 1,466 1,515 1,598 1,839 1,948 1,960
Contributions in relation to the statutorily or contractually required contributions* $ (1,466) (1,515) (1,598) (1,839) (1,948) (1,960)
Contribution deficiency (excess) $000 000
Covered payroll* $ 29,036 30,007 31,058 32,222 35,563 36,420
Contributions as a percentage of covered payroll % 5.05% 5.05% 5.15% 5.71% 5.48% 5.38% 111
Notes to Schedule:
* There were no changes in benefit terms or assumptions * Until a full 10-year trend is compiled, governments should present information only for those years for which information is available
112 GENERAL FUND
The General Fund accounts for all revenues and expenditures that are not accounted for in another fund based on legal requirements, sound financial management, and budgetary control purposes. The fund is reported on the modified accrual basis of accounting. The fund receives and uses unrestricted revenue of the county for activities such as the Sheriff’s Department, county detention facilities, judicial system, development planning and regulation, general governmental services, parks and recreation programs, and various human and health services.
The General Fund is a budgeted fund. Budgets may be administratively revised within departments of the fund with the stipulation that the total appropriation is not changed. Appropriations are authorized by ordinance at the department level and, in accordance with Washington State law, all appropriations lapse at the end of the year.
113 General Fund Schedule of Expenditures And Other Financing Uses by Department Budget (GAAP Basis) And Actual For The Year Ended December 31, 2020 With Comparative Actuals for 2019 (in Thousands) Variance with Final 2020-21 Budget 2020 Actual Budget - 2019 Actual Amount Amount Positive Amount
Original Final (Budget Basis) (Negative) (Budget Basis) Departments Assessor/Treasurer $ 24,169 $ 23,935 $ 11,552 $ 12,383 $ 11,263 Assigned Counsel 43,074 43,679 17,986 25,693 20,023 Auditor 20,841 23,238 12,499 10,738 11,031 Bond Debt Service 672 672 1,829 (1,157) 374 Capital Improvement Projects 330 330 - 330 130 Clerk 14,897 14,661 7,133 7,528 6,992 Communications 3,991 3,993 1,756 2,237 848 County Council 12,702 12,826 5,405 7,420 5,141 County Executive 5,389 5,257 2,267 2,990 2,362 District Court 31,978 31,342 15,064 16,277 15,030 Economic Development 3,559 54,067 44,424 9,643 1,432 Emergency Management 8,739 50,119 54,068 (3,949) 3,925 Finance and Performance Management 14,056 48,011 40,504 7,507 6,370 Health Services 5,135 9,315 160 9,155 2,615 Human Resources 10,577 10,255 4,673 5,582 4,482 Juvenile 47,105 45,691 21,610 24,081 22,252 Medical Examiner 8,758 10,596 4,494 6,102 3,571 Miscellaneous Current Expense 25,296 28,356 (4,055) 32,411 (1,091) Parks 18,611 17,802 7,863 9,939 8,386 Pierce County - - 2,942 (2,942) - Planning and Land Services 12,223 12,045 5,039 7,007 5,422 Prevention Services 4,036 4,036 1,292 2,745 1,798 Prosecuting Attorney 71,980 72,345 34,756 37,589 33,725 Sheriff's Corrections 121,751 117,877 54,567 63,310 57,238 Sheriff's Law Enforcement 174,563 170,757 81,117 89,640 77,280 Special Projects 3,829 3,215 1,282 1,933 1,389 State Auditor 431 431 249 182 154 Superior Court 40,789 40,667 19,139 21,528 19,297 WSU PC Extension 812 812 382 430 369 $ 730,289 $ 856,329 $ 449,996 $ 406,332 $ 321,804
114 NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds – Account for resources legally restricted for a specified purpose or to segregate expenditures incurred for specific activities. These funds are reported on the modified accrual basis. Other restricted resources are accounted for in trusts, debt service or capital project funds. (see individual fund descriptions for more details)
Debt Service Funds – Created to account for resources necessary to pay principal and interest for the current year on county general long-term debt. Individual funds are maintained to ensure compliance with applicable Washington State statutes. Debt Service Funds are reported on the modified accrual basis.
Capital Project Funds – Account for financial resources to be used for acquisition and/or construction of major capital facilities. These funds are reported on the modified accrual basis. Revenues are recognized when they are measurable and available for operations in the current year or when cash is received. Expenditures are recorded when incurred. (see individual fund descriptions for more details)
115 Nonmajor Governmental Funds Combining Balance Sheet At December 31, 2020 (In Thousands)
Special Debt Capital Total Other Revenue Service Project Governmental Funds Funds Funds Funds ASSETS Cash In Treasury Pool $ 63,925 $ 7,707 $ 25,893 $ 97,525 Cash With Trustee - - 229 229 Investments 80,359 - 51,626 131,985 Receivables, Net 5,869 - 4 5,873 Due From Other Governments 27,558 - 3,137 30,695 Prepaid Expense 4 - - 4 TOTAL ASSETS 177,715 7,707 80,889 266,311 DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF 177,715 7,707 80,889 266,311 RESOURCES
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities Vouchers And Accounts Payable 13,356 - 4,856 18,212 Due To Other Funds 3,714 - 412 4,126 Due To Other Governments 5,904 - 300 6,204 Accrued Wages And Benefits Payable 731 - 96 827 Unearned Revenues 1,891 - - 1,891 Interfund Loans Payable - - 291 291 Other Liabilities 27 - 6 33 Total Liabilities 25,623 - 5,961 31,584
DEFERRED INFLOWS OF RESOURCES 2,041 - - 2,041
Fund Balances Nonspendable 4 - - 4 Restricted 65,437 7,765 74,939 148,141 Committed 57 - - 57 Assigned 85,476 - - 85,476 Unassigned (922) (58) (11) (991) Total Fund Balances 150,052 7,707 74,928 232,687 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 177,716 $ 7,707 $ 80,889 $ 266,312
116 Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2020 (In Thousands)
Special Debt Capital Total Other Revenue Service Projects Governmental Funds Funds Funds Funds REVENUES Property Taxes $ 20,172 $ - $ - $ 20,172 Sales And Use Taxes 36,035 - - 36,035 Excise And Other Taxes 23,962 - 203 24,165 Licenses And Permits 15,501 - - 15,501 Intergovernmental Revenues 79,414 244 9,732 89,390 Charges For Services 65,544 - 303 65,847 Fines And Forfeits 3 - - 3 Interest 216 - 307 523 Miscellaneous 2,778 - 88 2,866 Capital Contributions 884 - - 884 TOTAL REVENUES 244,509 244 10,633 255,386
EXPENDITURES Current General Government 1,075 - - 1,075 Public Safety 25,669 - - 25,669 Physical Environment 10,426 - - 10,426 Legal And Judicial 431 - - 431 Transportation 712 - - 712 Economic Environment 40,840 - - 40,840 Health And Human Services 106,911 - - 106,911 Culture And Recreation 4,132 - - 4,132 Capital Projects General Government - - 8,224 8,224 Public Safety 1,226 - 28,957 30,183 Physical Environment 117 - 6,536 6,653 Transportation - - 26,497 26,497 Economic Environment - - 2,132 2,132 Health And Human Services 99 - 5,754 5,853 Culture And Recreation 350 - 7,505 7,855 Debt Service Principal Retirement 25 14,694 - 14,719 Interest And Fiscal Charges 13 5,370 14 5,397 Bond Issuance Costs - 138 - 138 TOTAL EXPENDITURES 192,026 20,202 85,619 297,847
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 52,483 (19,958) (74,986) (42,461)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets (4) - - (4) Transfer In 39,255 24,291 50,762 114,308 Transfer Out (68,137) - (23) (68,160) Refunding Bonds Issued - 11,380 - 11,380 Payment to Refunded Bonds Escrow - (13,261) - (13,261) Premiums on Debt Issued - 2,020 - 2,020 Total Other Financing Sources (Uses) (28,886) 24,430 50,739 46,283 NET CHANGE IN FUND BALANCES 23,597 4,472 (24,247) 3,822
FUND BALANCES - Begining Of Year 126,454 3,236 99,175 228,865 FUND BALANCES - End Of Year $ 150,051 $ 7,708 $ 74,928 $ 232,687
117
118 NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds account for financial resources restricted or committed to use for specific purposes other than debt service or capital projects. These funds are reported on the modified accrual basis. Revenues are recognized when measurable and available for operations in the current year or when cash is received. Expenditures are recorded when incurred. The Roads Fund is the major Special Revenue Funds reported in the basic financial statements section.
The following funds are reported in this section:
Veterans Relief – Established to provide housing, food and medical costs for indigent veterans. Financing is provided by a specific annual property tax as mandated under State of Washington R.C.W. 73.08.080.
Drug Enforcement – Fund will accept state marijuana excise tax revenues. The fund accounts for enforcing state and county laws upon non-compliant recreational and medical marijuana storefronts. The Pierce County Sheriff’s Department and the Prosecuting Attorney’s Office are the lead agencies.
Auditor’s Maintenance And Operation – Accounts for a surcharge collected on recording fees authorized by R.C.W. 36.22.170. Revenue must be used for ongoing preservation of historical documents. The fund also receives distributions from the State of Washington Centennial Document Preservation and Modernization Fund to be used solely for installation and maintenance of an improved system for copying, preserving and indexing documents recorded in the county.
Criminal Justice – Accounts for state grants restricted to use for the criminal justice system.
Conservation Futures – Accounts for acquisition, protection and conservation of open space, habitat areas, wetlands, farming, agricultural land, and timberlands. Funding is provided by an allocation of the property tax levy authorized by R.C.W. 84.34.230.
Dispute Resolution Center – Established by Ordinance 93-4 to provide mediation services to citizens of Pierce County. Funding is provided by a surcharge collected on civil and small claims filings in county courts.
Pierce County Fair – Accounts for maintenance and operation of the county fair. Financing is provided by user fees supplemented by allocations from the State of Washington State Fair Fund and the county General Fund.
Human Services – Administers County programs for mental health, developmental disabilities, and chemical dependency, and coordinates services mandated under the Older Americans Act. The majority of funding comes from state and federal grants. Accounts for maintenance and operation of the county fair. Financing is provided by user fees.
Rainier Communications Commission – Formed under an interlocal agreement to administer cable television franchises within the county and contiguous cities and towns. The Commission also plans and develops shared use of communication systems between members, and advises members regarding public education, and municipal communications. Funding is provided by participant fees.
Marine Services – Accounts for that portion of vessel registration fees collected by the State of Washington and allocated to counties with approved boating safety programs.
119
Detention Center Commissary – Accounts for commissary operations provided solely for the convenience of jail inmates. Proceeds are restricted to operations and maintenance of the commissary and/or prisoner welfare expenditures.
Federal Forest Services – Accounts for revenues received from federal forestry distributions. Use of these resources is restricted to specific purposes enumerated in federal law, and can only be used on or to benefit federal forest lands.
Drug Investigation – Established by Resolution No. 20494 to administer funds for investigation and apprehension of persons criminally involved in illegal sale, possession or distribution of controlled substances. Funding is provided by monies and property seized in narcotics and drug abuse cases.
911 System – Accounts for operation of the public safety emergency communication system which allows citizens to access police, fire, medical and aid or ambulance from virtually any telephone in the county. The emergency communication system is funded by an excise tax levied on telephone lines.
Antiprofiteering Revolving – Established in accordance with R.C.W. 9A.82.110 to investigate and prosecute criminal profiteering. Funding is provided from forfeitures of real and/or personal property judgments and penalties assessed against persons engaged in criminal profiteering.
Mental Health – Established by Ordinance 2007-40 to account for mental health services. Funding is provided by the State of Washington through Pierce County’s membership in the Regional Support Network and by charges for services.
Tourism Promotion Area – Established in accordance with RCW 35.101 to account for tourism promotion. Funding is provided by special assessments paid by operators of qualifying lodging facilities located throughout Pierce County.
Housing And Homeless – Administers programs funded by federal grants to provide financial and technical assistance to eligible low-income clients for repair or rehabilitation of their housing. These funds also provide down payment assistance to first time homebuyers and technical assistance to local nonprofit organizations offering housing development.
Community Development – Administers programs designed to improve quality of life for socially and economically disadvantaged people, and to encourage and foster community development throughout Pierce County.
Affordable Housing Document Recording Fee – Accounts for ten-dollar surcharge collected on certain documents to fund affordable housing opportunities for very-low income households in the county.
Homeless Document Recording Fee – Accounts for funding provided by the Homeless Housing Act to be used for homeless planning, housing and supportive services. The program is administered by the Department of Community Services Housing Program.
Emergency Management Grants – Established to account for grants awarded to Pierce County for administration and oversight of an approved Project Impact-Disaster Resistant Community Initiative. This is a national program to reduce effects of disasters on local communities.
Endangered Species Act – Established in response to the Endangered Species Act to track related programs and grants that are not associated with “routine” operations of county departments.
120 Parks Impact Fee – Accounts for impact fees assessed to minimize impact of new growth and development on public streets, parks, recreation facilities, school facilities, and certain fire protection facilities.
Parks Sales Tax – Accounts for the 0.1% sales tax imposed within Pierce County to be used for regional and local parks, accredited zoos, aquariums and wildlife preserves.
Second REET Parks – Accounts for 25 percent of the second one-quarter of one percent excise tax allowed under R.C.W 82.46 on the sale of real property in unincorporated Pierce County allocated for Parks and Recreation projects. Revenue provided must be used for infrastructure projects.
Second REET Roads – Accounts for 75 percent of the second one-quarter of one percent excise tax allowed under R.C.W 82.46 on the sale of real property in unincorporated Pierce County allocated for Transportation projects. Revenue provided must be used for infrastructure projects.
Traffic Impact Fees – Accounts for impact fees assessed to minimize impact of new growth and development on public streets and road facilities.
Paths And Trails – Established in accordance with R.C.W. 47.30 to finance construction and maintenance of paths and trails within the right-of-way of county roads. Funding is provided by 0.5% of gas tax revenue.
Surface Water Management – Accounts for surface water and storm drainage service charges for the development and construction of storm and surface water management facilities within Pierce County as authorized by Ordinance No. 87.205.
Flood Control Zone District – Established in accordance with R.C.W. 86.15 to finance construction, maintenance, and operations of flood control projects. Funding is provided by annual flood control improvement service charges on certain real property parcels within the county and contiguous cities and towns as authorized by Ordinance No. 2011-95s. As this is a legally separate entity, and reported as a blended component unit of Pierce County, no budgetary information is included in this schedule.
Emergency Communications Sales Tax – SS911 – Accounts for funding provided by a supplemental sales tax to fund the South Sound 911 emergency communication system.
Treasurer’s Operation And Maintenance – Accounts for seizure and sale of personal property and foreclosure of real property for nonpayment of taxes. Funding is provided by fees collected on delinquent accounts. Pursuant to State of Washington R.C.W. 84.56.020, the fund is excluded from the annual budget.
Community Action Agency – Provides social services to seniors and low-income citizens. Funding is provided by federal and state grants.
Tourism Promotion and Capital Facilities – Accounts for a special 2.0% excise tax on the sale of or charge made for furnishing lodging by a hotel, motel, or trailer camp. Use of these funds is restricted to acquiring, constructing or operating stadium facilities and convention centers.
Judson Family Justice Center – Administers funds received through an interlocal agreement between Pierce County and the City of Tacoma to provide enhanced community response to domestic violence victims and their families. Funding is provided by budgeted contributions from the funding partners.
121 REET Electronic Technology – Accounts for $5 recording filing fee assessed to provide funds to develop automated systems that allow counties to send real estate excise tax affidavit data to the State electronically.
Elections Equipment Replacement – Accounts for certain elections fees, voter registration fees, county funds and state reimbursements restricted to use for replacement of elections equipment. No expenditures were budgeted for 2013.
Planning and Land Services Building and Development – Accounts for permitting charges that were previously accounted for in the General Fund. The revenues received fund the permitting functions of PALS.
In-Lieu Fee Wetlands Mitigation Program – Provides for compensatory mitigation for unavoidable adverse impacts to waters of the United States and waters of the State of Washington, including wetlands, aquatic resources, and their buffers that result from activities authorized by federal, state, and local authorities.
Blighted Property Maintenance – The County Council adopted Ordinance No. 2014-4s that amended Chapters 17C and 18.140 of the Pierce County Code in an effort to reduce blight and encourage compliance in the unincorporated areas of Pierce County.
Election Stabilization – Accounts for the collection of funds, per County Ordinance 2014-76s2, to be used to minimize the year to year fluctuation in the General Fund net election costs.
Pierce County Law Library – Accounts for the county fiduciary responsibility as treasurer for the law library in accordance with R.C.W. 27.24.
Combined Communications Network – Provides for the management and delivery of interoperable wireless communications for public safety, public transportation, and general government operations in Pierce County. This operates under a Joint Venture created in 2014 with the approval by Pierce County Council, Resolution No. R2014-95S. The fund is governed by the CCN Executive Board, which is comprised of equal members from Pierce Transit and Pierce County.
Behavioral Health Partnership – Leverages public and private resources and promotes partnerships to help build infrastructure, capacity, and programming in Pierce County's behavioral health system.
Real Estate Excise Tax – Ordinance No. 2017-51 amended County Code 4.24.010 by creating a new fund for collection of one-quarter of one percent Real Estate Excise Tax (First REET), on each sale of real property situated in the unincorporated areas of the County.
Affordable and Supportive Housing Sales Tax - The County Council adopted Ordinance No. 2019- 57s, Chapter 4.29 of the Pierce County Code, creating the Affordable and Supportive Housing Sales and Use Tax. The tax imposed is deducted from the amount otherwise collected or paid to the Department of Revenue. The rate of the tax imposed is the maximum rate permitted counties under Chapter 338, Laws of 2019, and expires 20 years after the date on which the tax is first imposed. Funds generated from this tax can only be used for the acquisition, rehabilitation, or construction of affordable housing units, or to fund the operations and maintenance costs of new units of affordable or supportive housing. Housing and services may only be provided to persons whose income is at or below 60% of the County median income.
122 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 1 of 12
Auditor's Maintenance Drug and Veterans Enforcement Operations Criminal Relief Fund Fund Fund Justice Fund ASSETS Cash in Treasury Pool $ 1,011 $ 955 $ 456 $ 1 Investments 1,015 959 458 - Receivables, Net 49 - - - Due From Other Governments - - - 294 Prepaid Expense - - - - TOTAL ASSETS 2,075 1,914 914 295
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 2,075 1,914 914 295
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 44 - - 23 Due to Other Funds - - - 3 Due to Other Governments 12 - - - Accrued Wages and Benefits Payable 6 1 4 2 Unearned Revenue - - - 224 Other Liabilities - - - 2 Total Liabilities 62 1 4 254
DEFERRED INFLOWS OF RESOURCES 27 - - -
Fund Balances Nonspendable - - - - Restricted - 1,913 - - Committed - - - - Assigned 1,984 - 910 41 Unassigned - - - - Total Fund Balances 1,984 1,913 910 41 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 2,073 $ 1,914 $ 914 $ 295
123 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 2 of 12
Dispute Pierce Conservation Resolution County Fair Human Futures Fund Center Fund Fund Services Fund ASSETS Cash in Treasury Pool $ 1,383 $ 26 $ 39 $ 1 Investments 1,388 26 29 - Receivables, Net 94 - - 188 Due From Other Governments - - - 15,580 Prepaid Expense - - - - TOTAL ASSETS 2,865 52 68 15,769
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 2,865 52 68 15,769
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable - - - 2,815 Due to Other Funds - - - 2,140 Due to Other Governments - - - 3,939 Accrued Wages and Benefits Payable 11 - - 192 Unearned Revenue - - - 914 Other Liabilities 3 - - 4 Total Liabilities 14 - - 10,004
DEFERRED INFLOWS OF RESOURCES 77 - - 15
Fund Balances Nonspendable - - - - Restricted 2,774 - - - Committed - - - - Assigned - 52 68 5,752 Unassigned - - - - Total Fund Balances 2,774 52 68 5,752 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 2,865 $ 52 $ 68 $ 15,771
124 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 3 of 12
Detention Rainier Marine Center Communications Services Commissary Federal Forest Commission Fund Fund Fund Services Fund ASSETS Cash in Treasury Pool $ 504 $ 63 $ 557 $ 4 Investments 782 64 560 4 Receivables, Net - - - - Due From Other Governments 59 - - - Prepaid Expense - - - - TOTAL ASSETS 1,345 127 1,117 8
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 1,345 127 1,117 8
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 108 - 45 - Due to Other Funds - - - - Due to Other Governments 2 - - - Accrued Wages and Benefits Payable 10 - 4 - Unearned Revenue - - - - Other Liabilities - - 1 - Total Liabilities 120 - 50 -
DEFERRED INFLOWS OF RESOURCES - - - -
Fund Balances Nonspendable - - - - Restricted - - - 7 Committed 57 - - - Assigned 1,526 127 1,067 - Unassigned (359) - - - Total Fund Balances 1,224 127 1,067 7 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 1,344 $ 127 $ 1,117 $ 7
125 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 4 of 12
Drug Investigation 911 System Antiprofiteering Mental Fund Fund Revolving Fund Health Fund ASSETS Cash in Treasury Pool $ 1,411 $ 1,762 $ 25 $ 67 Investments 1,381 1,770 25 67 Receivables, Net - 1,502 - - Due From Other Governments 6 9 - - Prepaid Expense - - - - TOTAL ASSETS 2,798 5,043 50 134
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 2,798 5,043 50 134
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 16 - - - Due to Other Funds - - - - Due to Other Governments 121 - - - Accrued Wages and Benefits Payable - 4 - - Unearned Revenue - - - - Other Liabilities 1 - - - Total Liabilities 138 4 - -
DEFERRED INFLOWS OF RESOURCES - - - -
Fund Balances Nonspendable - - - - Restricted - 5,039 50 129 Committed - - - - Assigned 2,660 - - 5 Unassigned - - - - Total Fund Balances 2,660 5,039 50 134 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 2,798 $ 5,043 $ 50 $ 134
126 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 5 of 12
Affordable Housing Tourism Housing and Community Document Promotion Homeless Development Recording Area Fund Fund Fund Fee Fund ASSETS Cash in Treasury Pool $ 493 $ 1 $ 1 $ 1,799 Investments 495 - - 1,807 Receivables, Net - - - - Due From Other Governments - 7,065 1,576 39 Prepaid Expense - - - - TOTAL ASSETS 988 7,066 1,577 3,645
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 988 7,066 1,577 3,645
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 22 6,050 106 1,133 Due to Other Funds - 107 1,036 - Due to Other Governments - 1,024 371 148 Accrued Wages and Benefits Payable 1 24 9 2 Unearned Revenue - - - - Other Liabilities - 1 - - Total Liabilities 23 7,206 1,522 1,283
DEFERRED INFLOWS OF RESOURCES - - - -
Fund Balances Nonspendable - - - - Restricted - - 24 - Committed - - - - Assigned 965 - 31 2,361 Unassigned - (139) - - Total Fund Balances 965 (139) 55 2,361 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 988 $ 7,067 $ 1,577 $ 3,644
127 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 6 of 12
Homeless Document Emergency Endangered Recording Management Species Act Parks Impact Fee Fund Grants Fund Fund Fee Fund ASSETS Cash in Treasury Pool $ 5,251 $ 1 $ 70 $ 3,814 Investments 5,273 - 70 3,830 Receivables, Net - - - 122 Due From Other Governments - 639 - - Prepaid Expense - - - - TOTAL ASSETS 10,524 640 140 7,766
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 10,524 640 140 7,766
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 540 62 - - Due to Other Funds - 66 - - Due to Other Governments - 10 - - Accrued Wages and Benefits Payable 1 10 - - Unearned Revenue - - - - Other Liabilities - 1 - - Total Liabilities 541 149 - -
DEFERRED INFLOWS OF RESOURCES - - - 122
Fund Balances Nonspendable - - - - Restricted - - 140 213 Committed - - - - Assigned 9,983 490 - 7,432 Unassigned - - - - Total Fund Balances 9,983 490 140 7,645 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 10,524 $ 639 $ 140 $ 7,767
128 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 7 of 12
Parks Sales Second REET Second REET Traffic Impact Tax Fund Parks Fund Roads Fund Fee Fund ASSETS Cash in Treasury Pool $ 1,155 $ 744 $ 5,867 $ 356 Investments 1,160 747 5,892 10,571 Receivables, Net 791 - - 136 Due From Other Governments - - - - Prepaid Expense - - - - TOTAL ASSETS 3,106 1,491 11,759 11,063
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 3,106 1,491 11,759 11,063
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 11 - - 1 Due to Other Funds - - - - Due to Other Governments 6 - - - Accrued Wages and Benefits Payable 19 - - - Unearned Revenue - - - - Other Liabilities 1 - - - Total Liabilities 37 - - 1
DEFERRED INFLOWS OF RESOURCES - - - 137
Fund Balances Nonspendable - - - - Restricted 3,070 1,491 11,760 634 Committed - - - - Assigned - - - 10,710 Unassigned - - - (420) Total Fund Balances 3,070 1,491 11,760 10,924 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 3,107 $ 1,491 $ 11,760 $ 11,062
129 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 8 of 12
Emergency Surface Water Flood Control Communication Paths and Management Zone District Sales Tax SS911 Trails Fund Fund Fund Fund ASSETS Cash in Treasury Pool $ 69 $ 1,936 $ 18,849 $ 348 Investments 70 20,395 6,178 350 Receivables, Net - 1,117 227 - Due From Other Governments - 164 - - Prepaid Expense - 4 - - TOTAL ASSETS 139 23,616 25,254 698
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 139 23,616 25,254 698
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable - 330 5 - Due to Other Funds - - - - Due to Other Governments 4 54 - - Accrued Wages and Benefits Payable 5 154 - - Unearned Revenue - - - - Other Liabilities - 1 - - Total Liabilities 9 539 5 -
DEFERRED INFLOWS OF RESOURCES - 895 184 -
Fund Balances Nonspendable - 4 - - Restricted - - 24,459 698 Committed - - - - Assigned 130 22,176 605 - Unassigned - - - - Total Fund Balances 130 22,180 25,064 698 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 139 $ 23,614 $ 25,253 $ 698
130 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 9 of 12
Treasurer's Tourism Judson Operations & Promotion and Family Maintenance Community Capital Justice Fund Action Fund Facilities Fund Center Fund ASSETS Cash in Treasury Pool $ 1 $ 1 $ 3,260 $ 79 Investments 1 - 3,273 80 Receivables, Net - 85 271 11 Due From Other Governments - 1,908 - 33 Prepaid Expense - - - - TOTAL ASSETS 2 1,994 6,804 203
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 2 1,994 6,804 203
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 1 1,049 81 39 Due to Other Funds - 362 - - Due to Other Governments - 63 - - Accrued Wages and Benefits Payable 4 46 1 9 Unearned Revenue - - - - Other Liabilities - - - - Total Liabilities 5 1,520 82 48
DEFERRED INFLOWS OF RESOURCES - - - -
Fund Balances Nonspendable - - - - Restricted - - 6,723 - Committed - - - - Assigned - 474 - 154 Unassigned (3) - - - Total Fund Balances (3) 474 6,722 154 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 2 $ 1,994 $ 6,804 $ 202
131 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 10 of 12
Planning and REET Elections Land Services In-Lieu Fee Electronic Equipment Building and Wetlands Technology Replacement Development Mitigation Fund Fund Fund Program Fund ASSETS Cash in Treasury Pool $ 182 $ 954 $ 3,591 $ 488 Investments 183 958 3,606 517 Receivables, Net - - 32 - Due From Other Governments - 48 - - Prepaid Expense - - - - TOTAL ASSETS 365 1,960 7,229 1,005
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 365 1,960 7,229 1,005
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable - - 9 - Due to Other Funds - - - - Due to Other Governments - - - - Accrued Wages and Benefits Payable 1 - 184 - Unearned Revenue - - - - Other Liabilities 7 - 6 - Total Liabilities 8 - 199 -
DEFERRED INFLOWS OF RESOURCES - - - -
Fund Balances Nonspendable - - - - Restricted - - - - Committed - - - - Assigned 356 1,960 7,029 1,007 Unassigned - - - (2) Total Fund Balances 356 1,960 7,029 1,005 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 364 $ 1,960 $ 7,228 $ 1,005
132 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 11 of 12
Blighted Property Election Pierce County Combined Maintenance Stabilization Law Library Communications Fund Fund Fund Network Fund ASSETS Cash in Treasury Pool $ 293 $ 116 $ 139 $ 2,227 Investments 294 116 140 2,237 Receivables, Net 587 - - - Due From Other Governments - - - 139 Prepaid Expense - - - - TOTAL ASSETS 1,174 232 279 4,603
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 1,174 232 279 4,603
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 56 - 54 1 Due to Other Funds - - - - Due to Other Governments - - - 150 Accrued Wages and Benefits Payable 14 - 5 4 Unearned Revenue - - - - Other Liabilities - - - - Total Liabilities 70 - 59 155
DEFERRED INFLOWS OF RESOURCES 583 - - -
Fund Balances Nonspendable - - - - Restricted - - - - Committed - - - - Assigned 520 232 219 4,448 Unassigned - - - - Total Fund Balances 520 232 219 4,448 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 1,173 $ 232 $ 278 $ 4,603
133 Nonmajor Special Revenue Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 12 of 12
Behavioral Affordable and Health Real Estate Supportive Total Nonmajor Partnership Excise Tax Housing Sales Special Fund Fund Tax Revenue Funds ASSETS Cash in Treasury Pool $ 1,507 $ 1,340 $ 728 $ 63,925 Investments 1,514 1,346 731 80,359 Receivables, Net 366 - 292 5,869 Due From Other Governments - - - 27,558 Prepaid Expense - - - 4 TOTAL ASSETS 3,387 2,686 1,751 177,715
DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 3,387 2,686 1,751 177,715
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES Liabilities Vouchers and Accounts Payable 754 - - 13,356 Due to Other Funds - - - 3,714 Due to Other Governments - - - 5,904 Accrued Wages and Benefits Payable 2 - - 731 Unearned Revenue 753 - - 1,891 Other Liabilities - - - 27 Total Liabilities 1,509 - - 25,623
DEFERRED INFLOWS OF RESOURCES - - - 2,041
Fund Balances Nonspendable - - - 4 Restricted 1,877 2,686 1,752 65,437 Committed - - - 57 Assigned - - - 85,476 Unassigned - - - (922) Total Fund Balances 1,877 2,686 1,752 150,052 TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES $ 3,386 $ 2,686 $ 1,752 $ 177,716
134 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 1 of 12 Auditor's Maintenance Drug and Veterans Enforcement Operations Criminal Relief Fund Fund Fund Justice Fund REVENUES Property Taxes $ 1,750 $ - $ - $ - Sales And Use Taxes - - - - Excise And Other Taxes 9 - - - Licenses And Permits - - - - Intergovernmental Revenues - 1,037 249 468 Charges For Services - - 560 - Fines And Forfeits - - - - Interest - - - 1 Miscellaneous - - - - Capital Contributions - - - - TOTAL REVENUES 1,759 1,037 809 469
EXPENDITURES Current General Government - - 608 - Public Safety - 87 - 349 Utilities - - - - Legal and Judicial - 80 - 121 Economic Environment - - - - Transportation - - - - Social Services 3,239 - - 262 Culture And Recreation - - - - Capital Projects Public Safety - - - - Utilities - - - - Social Services 99 - - - Culture And Recreation - - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 3,338 167 608 732
EXCESS OF REVENUES OVER EXPENDITURES (1,579) 870 201 (263)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In 2,266 3 - 300 Transfers Out - (402) - - TOTAL OTHER FINANCING SOURCES 2,266 (399) - 300 (USES)
NET CHANGE IN FUND BALANCE 687 471 201 37 FUND BALANCE - Beginning of Year 1,297 1,441 709 4 FUND BALANCE - End Of Year $ 1,984 $ 1,912 $ 910 $ 41
135 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 2 of 12
Dispute Pierce Conservation Resolution County Fair Human Futures Fund Center Fund Fund Services Fund REVENUES Property Taxes $ 4,766 $ - $ - $ 897 Sales And Use Taxes - - - - Excise And Other Taxes 28 - - 5 Licenses And Permits - - - - Intergovernmental Revenues - - 34 35,362 Charges For Services 3 128 11 4,143 Fines And Forfeits - - - - Interest - - - - Miscellaneous 20 - - - Capital Contributions - - - - TOTAL REVENUES 4,817 128 45 40,407
EXPENDITURES Current General Government - - - (339) Public Safety - - - 86 Utilities - - - - Legal and Judicial - 159 - - Economic Environment - - - - Transportation - - - - Social Services - - - 44,061 Culture And Recreation 1,128 - 103 - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation 33 - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 1,161 159 103 43,808
EXCESS OF REVENUES OVER EXPENDITURES 3,656 (31) (58) (3,401)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In 64 28 76 4,865 Transfers Out (1,978) - - (44) TOTAL OTHER FINANCING SOURCES (1,914) 28 76 4,821 (USES)
NET CHANGE IN FUND BALANCE 1,742 (3) 18 1,420 FUND BALANCE - Beginning of Year 1,031 55 51 4,332 FUND BALANCE - End Of Year $ 2,773 $ 52 $ 69 $ 5,752
136 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 3 of 12
Detention Rainier Marine Center Communications Services Commissary Federal Forest Commission Fund Fund Fund Services Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes - - - - Excise And Other Taxes - - - - Licenses And Permits 647 - - - Intergovernmental Revenues 708 110 - 14 Charges For Services 104 - 1,087 - Fines And Forfeits - - - - Interest - - - - Miscellaneous 2 - - - Capital Contributions - - - - TOTAL REVENUES 1,461 110 1,087 14
EXPENDITURES Current General Government - - - - Public Safety 4 129 1,085 20 Utilities 1,095 - - - Legal and Judicial - - - - Economic Environment - - - - Transportation - - - - Social Services - - - - Culture And Recreation - - - - Capital Projects - Public Safety 61 - - - Utilities 117 - - - Social Services - - - - Culture And Recreation - - - - Debt Service - Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 1,277 129 1,085 20
EXCESS OF REVENUES OVER EXPENDITURES 184 (19) 2 (6)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets 1 - - - Transfers In 5 25 - - Transfers Out - - (18) - TOTAL OTHER FINANCING SOURCES 6 25 (18) - (USES)
NET CHANGE IN FUND BALANCE 190 6 (16) (6) FUND BALANCE - Beginning of Year 1,035 122 1,084 13 FUND BALANCE - End Of Year $ 1,225 $ 128 $ 1,068 $ 7
137 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 4 of 12
Drug Mental Investigation 911 System Antiprofiteering Health Fund Fund Revolving Fund Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes - 8,746 - - Excise And Other Taxes - - - - Licenses And Permits - - - - Intergovernmental Revenues 47 36 - - Charges For Services - - - - Fines And Forfeits 3 - - - Interest 2 11 - - Miscellaneous 1,095 8 - - Capital Contributions - - - - TOTAL REVENUES 1,147 8,801 - -
EXPENDITURES Current General Government - - - - Public Safety 354 6,038 - - Utilities - - - - Legal and Judicial 71 - - - Economic Environment - - - - Transportation - - - - Social Services - - - 11 Culture And Recreation - - - - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation - - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 425 6,038 - 11
EXCESS OF REVENUES OVER EXPENDITURES 722 2,763 - (11)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - (4) - - Transfers In - - - - Transfers Out - (1,927) - - TOTAL OTHER FINANCING SOURCES - (1,931) - - (USES)
NET CHANGE IN FUND BALANCE 722 832 - (11) FUND BALANCE - Beginning of Year 1,938 4,207 50 145 FUND BALANCE - End Of Year $ 2,660 $ 5,039 $ 50 $ 134
138 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 5 of 12 Affordable Housing Tourism Housing and Community Document Promotion Homeless Development Recording Area Fund Fund Fund Fee Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes - - - - Excise And Other Taxes - - - - Licenses And Permits - - - - Intergovernmental Revenues - 22,700 2,849 81 Charges For Services 933 776 - 1,516 Fines And Forfeits - - - - Interest 1 - - - Miscellaneous - - 180 - Capital Contributions - - - - TOTAL REVENUES 934 23,476 3,029 1,597
EXPENDITURES Current General Government - - - - Public Safety - - - - Utilities - - - - Legal and Judicial - - - - Economic Environment 830 1,200 2,230 4,727 Transportation - - - - Social Services - 34,622 818 40 Culture And Recreation - - - - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation - - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 830 35,822 3,048 4,767
EXCESS OF REVENUES OVER EXPENDITURES 104 (12,346) (19) (3,170)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In - 12,358 127 3,125 Transfers Out - - (97) - TOTAL OTHER FINANCING SOURCES - 12,358 30 3,125 (USES)
NET CHANGE IN FUND BALANCE 104 12 11 (45) FUND BALANCE - Beginning of Year 861 (152) 42 2,406 FUND BALANCE - End Of Year $ 965 $ (140) $ 53 $ 2,361
139 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 6 of 12
Homeless Document Emergency Endangered Recording Management Species Act Parks Impact Fee Fund Grants Fund Fund Fee Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes - - - - Excise And Other Taxes - - - - Licenses And Permits - - - - Intergovernmental Revenues - 1,773 - - Charges For Services 9,439 - - 7,850 Fines And Forfeits - - - - Interest - - - - Miscellaneous - 48 - - Capital Contributions - 884 - - TOTAL REVENUES 9,439 2,705 - 7,850
EXPENDITURES Current General Government - - - - Public Safety - 1,635 - - Utilities - - - - Legal and Judicial - - - - Economic Environment - - - - Transportation - - - - Social Services 6,231 - - - Culture And Recreation - - - 17 Capital Projects Public Safety - 1,165 - - Utilities - - - - Social Services - - - - Culture And Recreation - - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 6,231 2,800 - 17
EXCESS OF REVENUES OVER EXPENDITURES 3,208 (95) - 7,833
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In 250 217 - - Transfers Out - - - (5,062) TOTAL OTHER FINANCING SOURCES 250 217 - (5,062) (USES)
NET CHANGE IN FUND BALANCE 3,458 122 - 2,771 FUND BALANCE - Beginning of Year 6,525 368 140 4,873 FUND BALANCE - End Of Year $ 9,983 $ 490 $ 140 $ 7,644
140 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 7 of 12
Traffic Parks Sales Second REET Second REET Impact Fee Tax Fund Parks Fund Roads Fund Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes 4,176 - - - Excise And Other Taxes - 3,008 9,024 - Licenses And Permits - - - - Intergovernmental Revenues - - - - Charges For Services 6 - - 7,621 Fines And Forfeits - - - - Interest - - - 52 Miscellaneous 323 - - - Capital Contributions - - - - TOTAL REVENUES 4,505 3,008 9,024 7,673
EXPENDITURES Current General Government - - - - Public Safety - - - - Utilities - - - - Legal and Judicial - - - - Economic Environment - - - - Transportation - - 1 168 Social Services - - - - Culture And Recreation 1,955 104 - - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation 281 - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 2,236 104 1 168
EXCESS OF REVENUES OVER EXPENDITURES 2,269 2,904 9,023 7,505
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In 40 - - - Transfers Out (1,676) (3,454) (10,521) (6,348) TOTAL OTHER FINANCING SOURCES (1,636) (3,454) (10,521) (6,348) (USES)
NET CHANGE IN FUND BALANCE 633 (550) (1,498) 1,157 FUND BALANCE - Beginning of Year 2,437 2,041 13,258 9,767 FUND BALANCE - End Of Year $ 3,070 $ 1,491 $ 11,760 $ 10,924
141 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 8 of 12
Surface Emergency Water Flood Communication Paths and Management Control Zone Sales Tax SS911 Trails Fund Fund District Fund Fund REVENUES Property Taxes $ - $ - $ 12,759 $ - Sales And Use Taxes - - - 19,628 Excise And Other Taxes - - 60 - Licenses And Permits - - - - Intergovernmental Revenues 305 700 - - Charges For Services 4 25,206 - - Fines And Forfeits - - - - Interest - 107 39 - Miscellaneous 55 11 - - Capital Contributions - - - - TOTAL REVENUES 364 26,024 12,858 19,628
EXPENDITURES Current General Government - - - - Public Safety - 278 - 9,797 Utilities - 9,331 - - Legal and Judicial - - - - Economic Environment - 10,998 2,305 - Transportation 460 83 - - Social Services - - - - Culture And Recreation 184 - - - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation 36 - - - Debt Service Principal Retirement - 25 - - Interest - 13 - - TOTAL EXPENDITURES 680 20,728 2,305 9,797
EXCESS OF REVENUES OVER EXPENDITURES (316) 5,296 10,553 9,831
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In 299 1,997 - - Transfers Out - (5,501) (2,674) (9,825) TOTAL OTHER FINANCING SOURCES 299 (3,504) (2,674) (9,825) (USES)
NET CHANGE IN FUND BALANCE (17) 1,792 7,879 6 FUND BALANCE - Beginning of Year 147 20,387 17,186 692 FUND BALANCE - End Of Year $ 130 $ 22,179 $ 25,065 $ 698
142 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 9 of 12 Tourism Treasurer's Promotion Judson Operation & and Capital Family Maintenance Community Facilities Justice Fund Action Fund Fund Center Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes - - 1,822 - Excise And Other Taxes - - - - Licenses And Permits - - - - Intergovernmental Revenues - 7,413 - 583 Charges For Services 396 18 - - Fines And Forfeits - - - - Interest - - - - Miscellaneous - 565 - 15 Capital Contributions - - - - TOTAL REVENUES 396 7,996 1,822 598
EXPENDITURES Current General Government 420 33 - - Public Safety - - - 1,398 Utilities - - - - Legal and Judicial - - - - Economic Environment - 333 870 - Transportation - - - - Social Services - 13,642 - - Culture And Recreation - - - - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation - - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 420 14,008 870 1,398
EXCESS OF REVENUES OVER EXPENDITURES (24) (6,012) 952 (800)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In - 6,037 - 741 Transfers Out - (14) - - TOTAL OTHER FINANCING SOURCES - 6,023 - 741 (USES)
NET CHANGE IN FUND BALANCE (24) 11 952 (59) FUND BALANCE - Beginning of Year 21 463 5,770 214 FUND BALANCE - End Of Year $ (3) $ 474 $ 6,722 $ 155
143 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 10 of 12 Planning and In-Lieu Fee REET Elections Land Services Wetlands Electronic Equipment Building and Mitigation Technology Replacement Development Program Fund Fund Fund Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes - - - - Excise And Other Taxes - - - - Licenses And Permits - - 14,853 - Intergovernmental Revenues 49 - - - Charges For Services 80 131 2,531 106 Fines And Forfeits - - - - Interest - - - - Miscellaneous - - - - Capital Contributions - - - - TOTAL REVENUES 129 131 17,384 106
EXPENDITURES Current General Government 141 213 - - Public Safety - - 16 - Utilities - - - - Legal and Judicial - - - - Economic Environment - - 16,884 - Transportation - - - - Social Services - - - - Culture And Recreation - - - - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation - - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 141 213 16,900 -
EXCESS OF REVENUES OVER EXPENDITURES (12) (82) 484 106
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In - 139 1,038 - Transfers Out - - (572) - TOTAL OTHER FINANCING SOURCES - 139 466 - (USES)
NET CHANGE IN FUND BALANCE (12) 57 950 106 FUND BALANCE - Beginning of Year 368 1,903 6,079 898 FUND BALANCE - End Of Year $ 356 $ 1,960 $ 7,029 $ 1,004
144 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 11 of 12 Pierce Blighted County Property Election Law Combined Maintenance Stabilization Library Communications Fund Fund Fund Network Fund REVENUES Property Taxes $ - $ - $ - $ - Sales And Use Taxes - - - - Excise And Other Taxes - - - - Licenses And Permits - - - - Intergovernmental Revenues - - - - Charges For Services - - 451 2,442 Fines And Forfeits - - - - Interest - - - - Miscellaneous 455 - - - Capital Contributions - - - - TOTAL REVENUES 455 - 451 2,442
EXPENDITURES Current General Government - - - - Public Safety 1,263 - - 3,131 Utilities - - - - Legal and Judicial - - - - Economic Environment 443 - - - Transportation - - - - Social Services - - - - Culture And Recreation - - 642 - Capital Projects Public Safety - - - - Utilities - - - - Social Services - - - - Culture And Recreation - - - - Debt Service Principal Retirement - - - - Interest - - - - TOTAL EXPENDITURES 1,706 - 642 3,131
EXCESS OF REVENUES OVER EXPENDITURES (1,251) - (191) (689)
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - - Transfers In 1,246 - 134 1,150 Transfers Out (31) (968) - - TOTAL OTHER FINANCING SOURCES 1,215 (968) 134 1,150 (USES)
NET CHANGE IN FUND BALANCE (36) (968) (57) 461 FUND BALANCE - Beginning of Year 557 1,200 275 3,986 FUND BALANCE - End Of Year $ 521 $ 232 $ 218 $ 4,447
145 Nonmajor Special Revenue Funds Combining Statements Of Revenues, Expenditures And Changes In Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 12 of 12 Affordable Total Behavioral Real and Nonmajor Health Estate Supportive Special Partnership Excise Housing Sales Revenue Fund Tax Fund Tax Funds REVENUES Property Taxes $ - $ - $ - $ 20,172 Sales And Use Taxes - - 1,663 36,035 Excise And Other Taxes - 11,828 - 23,962 Licenses And Permits - - - 15,501 Intergovernmental Revenues 4,896 - - 79,414 Charges For Services - - - 65,544 Fines And Forfeits - - - 3 Interest 2 - - 216 Miscellaneous - - - 2,778 Capital Contributions - - - 884 TOTAL REVENUES 4,898 11,828 1,663 244,509
EXPENDITURES Current General Government - - - 1,075 Public Safety - - - 25,669 Utilities - - - 10,426 Legal and Judicial - - - 431 Economic Environment - - 20 40,840 Transportation - - - 712 Social Services 3,984 - - 106,911 Culture And Recreation - - - 4,132 Capital Projects Public Safety - - - 1,226 Utilities - - - 117 Social Services - - - 99 Culture And Recreation - - - 350 Debt Service Principal Retirement - - - 25 Interest - - - 13 TOTAL EXPENDITURES 3,984 - 20 192,026
EXCESS OF REVENUES OVER EXPENDITURES 914 11,828 1,643 52,483
OTHER FINANCING SOURCES (USES) Sale Of Capital Assets - - - (4) Transfers In 2,725 - - 39,255 Transfers Out (5,920) (11,107) - (68,137) TOTAL OTHER FINANCING SOURCES (3,195) (11,107) - (28,886) (USES)
NET CHANGE IN FUND BALANCE (2,281) 721 1,643 23,597 FUND BALANCE - Beginning of Year 4,158 1,965 109 126,454 FUND BALANCE - End Of Year $ 1,877 $ 2,686 $ 1,752 $ 150,051
146 NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Funds account for financial resources to be used for acquisition and/or construction of capital equipment and major capital facilities. These funds are reported on the modified accrual basis. Revenues are recognized when measurable and available for operations in the current year or when cash is received. Expenditures are recorded when incurred.
Real Estate Excise Tax (REET) Capital Improvement – Established by Ordinance No. 91-55 to account for 72% of the proceeds of the first one-quarter of one percent excise tax allowed under R.C.W. 82.46 on the sale of real property in the unincorporated county. The monies are to be used for new capital projects or major repairs/enhancements to existing county structures and facilities.
1% For Arts Construction – Established to account for activities financed through the 1% for Arts Program. One percent of the cost of eligible construction projects is set aside for selection, acquisition, execution, display, placement and maintenance of works of art.
Parks Construction – Established to account for revenues such as impact fees allocated for parks construction.
Clear Zone Land Acquisition – Established to account for funding received from a federal grant and disbursements for acquisition of land adjacent to McChord Air Force Base.
South Sound 911 Bond Construction – Established to account for acquisition of and improvements to the county’s emergency radio and telephone communications systems. Funding is provided by two general obligation bond issues.
Public Works Construction – Accounts for funding and disbursement of funds received from state and federal grants, from construction bond proceeds, or from budgeted allocation from the Roads Special Revenue Fund for County road construction.
Transportation Facilities – Established to account for construction costs of new capital facility projects such as the roads maintenance shops or other support facilities. Funding is provided by a general obligation bond issue.
Surface Water Management Construction – Established to account for costs related to development and construction of storm and surface water management facilities within Pierce County. Funding is provided by the Surface Water Management Special Revenue Fund. Funds previously accounted for under the Real Estate Excise Tax (REET) River Improvement non-major special revenue fund are now included in this fund.
Paths and Trails Construction – Established to account for costs related to construction and maintenance of paths and trails within transportation right-of-way within Pierce County. Funding is provided by the Paths and Trails Special Revenue Fund.
Conservation Futures Construction – Established to account for costs related to acquisition, protection and conservation of open space, habitat areas, wetlands, farming, agricultural land, and timberlands within the county. Funding is provided by grants and certain property tax levies from the Conservation Futures Special Revenue Fund.
Administration Building Lease – Established to account for costs to design a new consolidated administration building. The design costs are financed by county funding.
South Sound 911 Building Lease – Established and funded primarily by bond proceeds to be dispersed to South Sound 911 for the construction of a Public Safety Communications Center.
147 Nonmajor Capital Projects Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 1 of 3
Clear Zone REET Capital 1% For Arts Parks Land Improvement Construction Construction Acquisition ASSETS Cash In Treasury Pool $ 8,306 $ 307 $ 540 $ 153 Cash With Trustee 229 - - - Investments 8,341 309 542 154 Receivables, Net - - - 1 Due From Other Governments 15 - - - TOTAL ASSETS 16,891 616 1,082 308 DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 16,891 616 1,082 308
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities Vouchers And Accounts Payable 671 - 267 - Due To Other Funds - - - - Due To Other Governments 1 - - - Accrued Wages And Benefits Payable 18 - - - Interfund Loans Payable 291 - - - Other Liabilities - - - - Total Liabilities 981 - 267 -
DEFERRED INFLOWS OF RESOURCES - - - -
Fund Balances Restricted 15,910 616 815 308 Unassigned - - - - Total Fund Balances 15,910 616 815 308
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 16,890 $ 616 $ 1,082 $ 308
148 Nonmajor Capital Projects Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 2 of 3
Surface South Sound Public Water 911 Bond Works Transportation Management Construction Construction Facilities Construction ASSETS Cash In Treasury Pool $ 1 $ 9,846 $ 561 $ 4,553 Cash With Trustee - - - - Investments 9 9,887 564 4,572 Receivables, Net - - - - Due From Other Governments - 1,675 - 1,392 TOTAL ASSETS 10 21,408 1,125 10,517 DEFERRED OUTFLOWS OF RESOURCES - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 10 21,408 1,125 10,517
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities Vouchers And Accounts Payable - 2,774 5 1,087 Due To Other Funds 3 - - - Due To Other Governments - 2 - 297 Accrued Wages And Benefits Payable - 61 - 17 Interfund Loans Payable - - - - Other Liabilities - 1 - 5 Total Liabilities 3 2,838 5 1,406
DEFERRED INFLOWS OF RESOURCES - - - -
Fund Balances Restricted 18 18,570 1,119 9,112 Unassigned (11) - - - Total Fund Balances 7 18,570 1,119 9,112
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 10 $ 21,408 $ 1,125 $ 10,517
149 Nonmajor Capital Projects Funds Combining Balance Sheet At December 31, 2020 (In Thousands) Page 3 of 3
Total South Nonmajor Paths and Conservation Sound 911 Capital Trails Futures Administration Building Projects Construction Construction Building Lease Lease Funds ASSETS Cash In Treasury Pool $ 346 $ 1,271 $ 8 $ 1 $ 25,893 Cash With Trustee - - - - 229 Investments 348 1,276 8 25,617 51,626 Receivables, Net - - - 3 4 Due From Other Governments 55 - - - 3,137 TOTAL ASSETS 749 2,547 16 25,621 80,889 DEFERRED OUTFLOWS OF RESOURCES - - - - -
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 749 2,547 16 25,621 80,889
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities Vouchers And Accounts Payable 52 - - - 4,856 Due To Other Funds - - - 409 412 Due To Other Governments - - - - 300 Accrued Wages And Benefits Payable - - - - 96 Interfund Loans Payable - - - - 291 Other Liabilities - - - - 6 Total Liabilities 52 - - 409 5,961
DEFERRED INFLOWS OF RESOURCES - - - - -
Fund Balances Restricted 697 2,547 15 25,212 74,939 Unassigned - - - - (11) Total Fund Balances 697 2,547 15 25,212 74,928
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $ 749 $ 2,547 $ 15 $ 25,621 $ 80,889
150 Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures And Changes in Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 1 of 3
Clear Zone REET Capital 1% for Arts Parks Land Improvement Construction Construction Acquisition REVENUES Excise And Other Taxes $ 158 $ - $ - $ - Intergovernmental Revenues 184 - - - Charges For Services 5 - - - Interest - - - - Miscellaneous - - - 24 TOTAL REVENUES 347 - - 24
EXPENDITURES Capital Projects General Government 8,201 - - 23 Public Safety 254 - - - Utilities - - - - Transportation - - - - Economic Environment - - - - Social Services 5,754 - - - Culture And Recreation - - 7,492 - Debt Service Interest And Fiscal Charges 14 - - - TOTAL EXPENDITURES 14,223 - 7,492 23
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (13,876) - (7,492) 1
OTHER FINANCING SOURCES (USES) Transfer In 14,596 23 7,387 - Transfer Out - - (23) - Total Other Financing Sources (Uses) 14,596 23 7,364 -
NET CHANGE IN FUND BALANCES 719 23 (128) - FUND BALANCES - Begining Of Year 15,191 593 942 307 FUND BALANCES - End Of Year $ 15,910 $ 616 $ 814 $ 307
151 Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures And Changes in Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 2 of 3
South Sound Surface Water 911 Bond Public Works Transportation Management Construction Construction Facilities Construction REVENUES Excise And Other Taxes $ - $ - $ - $ 45 Intergovernmental Revenues - 7,504 - 1,943 Charges For Services - 297 - - Interest - - - - Miscellaneous - - - - TOTAL REVENUES - 7,801 - 1,988
EXPENDITURES Capital Projects General Government - - - - Public Safety - - - - Utilities - - - 6,536 Transportation - 25,703 128 - Economic Environment - - - 795 Social Services - - - - Culture And Recreation - - - - Debt Service Interest And Fiscal Charges - - - - TOTAL EXPENDITURES - 25,703 128 7,331
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - (17,902) (128) (5,343)
OTHER FINANCING SOURCES (USES) Transfer In - 19,515 - 8,048 Transfer Out - - - - Total Other Financing Sources (Uses) - 19,515 - 8,048
NET CHANGE IN FUND BALANCES - 1,613 (128) 2,704 FUND BALANCES - Begining Of Year 6 16,957 1,248 6,407 FUND BALANCES - End Of Year $ 6 $ 18,570 $ 1,120 $ 9,111
152 Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures And Changes in Fund Balances For the Year Ended December 31, 2020 (In Thousands) Page 3 of 3
South Total Paths and Conservation Sound 911 Nonmajor Trails Futures Administrative Building Capital Construction Construction Building Lease Lease Project Funds REVENUES Excise And Other Taxes $ - $ - $ - $ - $ 203 Intergovernmental Revenues 102 - - - 9,732 Charges For Services - - - - 302 Interest - - - 307 307 Miscellaneous - 65 - - 88 TOTAL REVENUES 102 65 - 307 10,632
EXPENDITURES Capital Projects General Government - - - - 8,224 Public Safety - - - 28,703 28,957 Utilities - - - - 6,536 Transportation 667 - - - 26,497 Economic Environment - 1,337 - - 2,132 Social Services - - - - 5,754 Culture And Recreation 12 - - - 7,505 Debt Service Interest And Fiscal Charges - - - - 14 TOTAL EXPENDITURES 679 1,337 - 28,703 85,619
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (577) (1,272) - (28,396) (74,987)
OTHER FINANCING SOURCES (USES) Transfer In 665 529 - - 50,762 Transfer Out - - - - (23) Total Other Financing Sources (Uses) 665 529 - - 50,739
NET CHANGE IN FUND BALANCES 88 (743) - (28,397) (24,248) FUND BALANCES - Begining Of Year 609 3,290 15 53,609 99,175 FUND BALANCES - End Of Year $ 697 $ 2,547 $ 15 $ 25,212 $ 74,927
153 Governmental Funds Supplementary Budget Comparison Legal Level of Budgetary Control For The Year Ended December 31, 2020 (in Thousands) Page 1 of 2
2020-2021 Variance with Budget 2020 Actual Final Budget - Amount Amount Positive Final (Budget Basis) (Negative)
NONMAJOR SPECIAL REVENUE FUNDS Veterans Relief Fund $ 5,391 $ 3,339 $ 2,052 Drug Enforcement Fund 2,432 569 1,864 Auditor's Maintenance and Operations Fund 1,785 608 1,177 Criminal Justice Fund 946 732 214 Conservation Futures Fund 9,697 3,139 6,559 Dispute Resolution Center Fund 318 159 159 Pierce County Fair Fund 449 103 346 Human Services 87,620 43,852 43,768 Rainier Communication Commission Fund 2,965 1,276 1,689 Marine Services Fund 411 129 281 Detention Center Commissary Fund 2,434 1,103 1,331 Federal Forest Services Fund - 20 (20) Drug Investigation Fund 1,585 425 1,160 911 System Fund 18,622 7,965 10,657 Mental Health Fund 68 11 57 Tourism Promotion Area Fund 3,102 830 2,272 Housing and Homeless Fund 132,975 35,822 97,153 Community Development Fund 11,143 3,144 7,999 Affordable Housing Document Recording Fee Fund 8,529 4,767 3,762 Homeless Document Recording Fee Fund 15,857 6,231 9,626 Emergency Management Grants Fund 5,728 2,800 2,929 Parks Impact Fee Fund 9,745 5,079 4,666 Parks Sales Tax Fund 9,611 3,912 5,699 Second REET Parks Fund 8,207 3,557 4,650 Second REET Roads Fund 18,333 10,522 7,811 Traffic Impact Fee Fund 16,556 6,516 10,040 Paths And Trails Fund 1,355 679 676 Surface Water Management Fund 64,232 26,229 38,003 Flood Control Zone District - 4,979 (4,979) Emergency Communication Sales Tax SS911 Fund 46,512 19,622 26,890 Treasurer's Operations & Maintenance Fund - 420 (420) Community Action Fund 24,925 14,023 10,903 Tourism Promotion and Capital Facilities Fund 4,333 870 3,463 Judson Family Justice Center Fund 2,940 1,398 1,543 REET Electronic Technology Fund 419 141 278 Elections Equipment Replacement Fund 1,223 213 1,010 Pals Bldg & Development Fund 38,753 17,472 21,282 Blighted Property Maintenance Fund 4,807 1,737 3,069 Election Stabilization Fund 1,200 968 232
154 Governmental Funds Supplementary Budget Comparison Legal Level of Budgetary Control For The Year Ended December 31, 2020 (in Thousands) Page 2 of 2
2020-2021 Variance with Budget 2020 Actual Final Budget - Amount Amount Positive Final (Budget Basis) (Negative)
Pierce County Law Library Fund 1,757 642 1,116 Combined Communications Network 7,030 3,131 3,899 Behavioral Health Partnership Fund 16,289 9,904 6,385 Real Estate Excise Tax Fund 18,148 11,107 7,041 Affordable and Supportive Housing Sales Tax 2,232 20 2,212 Total Nonmajor Special Revenue Funds $ 610,664 $ 260,165 $ 350,504
NONMAJOR DEBT SERVICE FUND 42,391 33,464 8,927
NONMAJOR CAPITAL PROJECT FUNDS REET Capital Improvement Fund $ 62,865 $ 14,223 $ 48,642 1% For Arts Construction Fund 287 - 287 Parks Construction Fund 16,378 7,515 8,863 Clear Zone Land Acquisition 581 23 558 Public Works Construction Fund [320.000] 64,278 25,703 38,575 Transportation Facilities Fund 2,148 128 2,019 Surface Wtr Mgmt Construction 40,998 7,332 33,666 Paths & Trails Construction 6,212 679 5,533 Conservation Futures Construct 9,750 1,337 8,413 Ss911 Building Lease Fund 55,000 28,703 26,297 Total Nonmajor Capital Project Funds $ 258,497 $ 85,643 $ 172,853
Total Nonmajor Governmental Funds $ 911,552 $ 379,272 $ 532,284
155
156 INTERNAL SERVICE FUNDS
Internal Service Funds account for financing of goods or services provided to other county funds on a cost reimbursement basis. The accrual basis of accounting is used for Internal Service Funds.
Equipment Services Division – Purchases, maintains and repairs heavy equipment; and purchases materials needed to maintain county roadways. Rates for rental of equipment owned by the fund are intended to cover all costs of maintenance and repair, materials consumed, and future replacements. Roadway materials are billed at cost.
Information Technology – Provides central computing and data processing services to all county departments. These services include design, development and implementation of new computer systems, as well as the maintenance and operation of existing systems. Information Services is also responsible for the maintenance and operation of county telecommunications systems. Funding is provided by user fees.
Facilities Management – Maintains and operates county buildings, including janitorial services, general maintenance and repairs, and grounds maintenance. User fees provide funding.
Radio Communications – Purchases, maintains and repairs the countywide microwave communications system, and associated radios and other hardware. Funding is provided by user fees.
Fleet Rental Services – Purchases, maintains and repairs county passenger vehicles. Rates for rental of vehicles owned by the fund are intended to cover all costs of maintenance and repair, materials and supplies consumed, and future replacements.
General Services – Provides and accounts for the following services to county government: office supplies, photocopying, printing, mail processing, routing, delivery services, and records management. Funding is provided by user fees.
Self-Insurance – Manages county self-insurance activities, including purchasing of insurance coverage, payment of claim settlements, and minimization of potential loss exposure. Funding is provided by user fees charged to county departments based upon loss experience factors.
Workers Compensation – Administers employee safety and training programs in accordance with Washington Industrial Safety and Health Act of 1973, and the county Self-Insured Workers Compensation Program as provided by the Industrial Insurance Act, Title 51, State of Washington. Funding is provided by premium charges to county departments.
Medical Self-Insurance – To fund and administer certain employee medical benefits, claims expenses, and administrative expenses in accordance with Washington Administrative Code. Funding is provided by contributions from county departments and employee contributions.
157 Internal Service Funds Combining Statement of Net Position At December 31, 2020 (in Thousands) Page 1 of 3
Equipment Services Information Facilities Division Technology Management ASSETS Current Assets Unrestricted Cash in Treasury Pool $ 5,764 $ 8,971 $ 1,151 Investments 17,503 8,967 1,196 Receivables, Net 454 12 12 Due From Other Governments 7 225 57 Interfund Loans Receivable - - - Inventory, At Cost 2,872 - 71 Prepaid Expense - - 52 Restricted Cash With Trustee - - 3 Total Current Assets 26,600 18,175 2,542 Noncurrent Assets Capital Assets Land and Land Rights - - - Construction In Progress - - - Infrastructure And Other Improvements 148 - 112 Buildings And Systems 3,597 - 1,941 Machinery And Equipment 46,545 7,039 1,212 Capital Leases - - - Intangible Assets - 14,639 - Accumulated Depreciation (29,489) (11,699) (1,050) Total Capital Assets, Net 20,801 9,979 2,215 TOTAL ASSETS 47,401 28,154 4,757 DEFERRED OUTFLOWS OF RESOURCES Pension Deferred Outflow 248 1,628 409 Other Post Employment Benefits Deferred Outflows 36 569 71 TOTAL DEFERRED OUTFLOWS OF RESOURCES 284 2,197 480 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Current Liabilities Liabilities Payable From Unrestricted Assets: Vouchers and Accounts Payable 853 1,683 957 Due to Other Governments 20 49 109 Accrued Wages and Benefits Payable 39 266 77 Compensated Absences 29 125 35 Other Accrued Liabilities 12 1 3 Estimated Claims Settlements, Current - - - Other Post Employment Benefits 2 33 4 Total Current Liabilities 955 2,157 1,185 Noncurrent Liabilities Liabilities Payable From Unrestricted Assets: Compensated Absences 201 1,654 405 Estimated Claims Settlement - - - Other Post Employment Benefits 358 5,591 697 Pension Obligations 790 4,347 1,001 Total Noncurrent Liabilities 1,349 11,592 2,103 TOTAL LIABILITIES 2,304 13,749 3,288 TOTAL DEFERRED INFLOWS OF RESOURCES Pension Deferred Inflow 251 1,546 432 TOTAL DEFERRED INFLOWS OF RESOURCES 251 1,546 432 NET POSITION Net Investment In Capital Assets 20,802 9,979 2,215 Restricted - - 3 Unrestricted 24,328 5,076 (703) TOTAL NET POSITION $ 45,130 $ 15,055 $ 1,515
158 Internal Service Funds Combining Statement of Net Position At December 31, 2020 (in Thousands) Page 2 of 3
Radio Fleet Rental General Communications Service Services ASSETS Current Assets Unrestricted Cash in Treasury Pool $ 5,867 $ 1,425 $ 132 Investments 5,891 1,431 133 Receivables, Net - - - Due From Other Governments 8 - 11 Interfund Loans Receivable - - - Inventory, At Cost - 101 413 Prepaid Expense - - - Restricted Cash With Trustee - - - Total Current Assets 11,766 2,957 689 Noncurrent Assets Capital Assets Land and Land Rights - 211 - Construction In Progress 351 - - Infrastructure And Other Improvements 42 - - Buildings And Systems 4,054 568 - Machinery And Equipment 27,171 19,983 86 Capital Leases - - - Intangible Assets - - - Accumulated Depreciation (10,705) (12,064) (58) Total Capital Assets, Net 20,913 8,698 28 TOTAL ASSETS 32,679 11,655 717 DEFERRED OUTFLOWS OF RESOURCES Pension Deferred Outflow 86 34 62 Other Post Employment Benefits Deferred Outflows 7 2 39 TOTAL DEFERRED OUTFLOWS OF RESOURCES 93 36 101 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Current Liabilities Liabilities Payable From Unrestricted Assets: Vouchers and Accounts Payable 77 138 24 Due to Other Governments 9 - - Accrued Wages and Benefits Payable 13 6 12 Compensated Absences 5 3 23 Other Accrued Liabilities 6 1 1 Estimated Claims Settlements, Current - - - Other Post Employment Benefits - - 2 Total Current Liabilities 110 148 62 Noncurrent Liabilities Liabilities Payable From Unrestricted Assets: Compensated Absences 61 49 82 Estimated Claims Settlement - - - Other Post Employment Benefits 68 18 380 Pension Obligations 289 93 156 Total Noncurrent Liabilities 418 160 618 TOTAL LIABILITIES 528 308 680 TOTAL DEFERRED INFLOWS OF RESOURCES Pension Deferred Inflow 82 34 64 TOTAL DEFERRED INFLOWS OF RESOURCES 82 34 64 NET POSITION Net Investment In Capital Assets 20,914 8,698 28 Restricted - - - Unrestricted 11,247 2,650 45 TOTAL NET POSITION $ 32,161 $ 11,348 $ 73
159 Internal Service Funds Combining Statement of Net Position At December 31, 2020 (in Thousands) Page 3 of 3
Self- Workers Medical Insurance Compensation Insurance Total ASSETS Current Assets Unrestricted Cash in Treasury Pool $ 23,537 $ 2,750 $ 5,406 $ 55,002 Investments 23,636 2,761 5,429 66,948 Receivables, Net 532 11 - 1,021 Due From Other Governments 8 - - 315 Interfund Loans Receivable 291 - - 291 Inventory, At Cost - - - 3,457 Prepaid Expense 1,137 - - 1,189 Restricted Cash With Trustee - - - 3 Total Current Assets 49,141 5,522 10,835 128,226 Noncurrent Assets Capital Assets Land and Land Rights - - - 211 Construction In Progress - - - 351 Infrastructure And Other Improvements - - - 303 Buildings And Systems - - - 10,160 Machinery And Equipment - 18 - 102,055 Capital Leases - - - - Intangible Assets - - - 14,639 Accumulated Depreciation - (1) - (65,066) Total Capital Assets, Net - 17 - 62,653 TOTAL ASSETS 49,141 5,539 10,835 190,879 DEFERRED OUTFLOWS OF RESOURCES Pension Deferred Outflow 51 32 20 2,569 Other Post Employment Benefits Deferred Outflows 25 12 5 765 TOTAL DEFERRED OUTFLOWS OF RESOURCES 76 44 25 3,334 LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Current Liabilities Liabilities Payable From Unrestricted Assets: Vouchers and Accounts Payable 58 73 19 3,883 Due to Other Governments - 99 - 287 Accrued Wages and Benefits Payable 9 4 2 429 Compensated Absences 2 3 3 226 Other Accrued Liabilities - - 1 23 Estimated Claims Settlements, Current 794 4,619 - 5,413 Other Post Employment Benefits 1 1 - 45 Total Current Liabilities 864 4,799 25 10,306 Noncurrent Liabilities Liabilities Payable From Unrestricted Assets: Compensated Absences 67 6 - 2,527 Estimated Claims Settlement 5,705 439 - 6,144 Other Post Employment Benefits 245 113 47 7,518 Pension Obligations 117 105 64 6,963 Total Noncurrent Liabilities 6,134 663 111 23,152 TOTAL LIABILITIES 6,998 5,462 136 33,458 TOTAL DEFERRED INFLOWS OF RESOURCES Pension Deferred Inflow 55 19 21 2,505 TOTAL DEFERRED INFLOWS OF RESOURCES 55 19 21 2,505 NET POSITION Net Investment In Capital Assets - 17 - 62,653 Restricted - - - 3 Unrestricted 42,160 85 10,704 95,593 TOTAL NET POSITION $ 42,160 $ 102 $ 10,704 $ 158,249
160 Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For The Year Ended December 31, 2020 (In Thousands) Page 1 of 3
Equipment Service Information Facilities Division Technology Management OPERATING REVENUES Charges For Services $ 13,935 $ 33,561 $ 16,727 Miscellaneous 16 3 42 TOTAL OPERATING REVENUES 13,951 33,564 16,769
OPERATING EXPENSES Personnel Services 2,681 17,798 5,505 Materials And Supplies 6,056 4,669 1,821 System Support Services 1,324 7,542 10,132 Depreciation And Amortization 3,425 1,608 193 Insurance And Claims Settlements, Net Of Recoveries 60 302 593 TOTAL OPERATING EXPENSES 13,546 31,919 18,244 OPERATING INCOME (LOSS) 405 1,644 (1,474)
NONOPERATING REVENUES (EXPENSE) Interest Income 162 - - Gain (Loss) On Disposal Of Capital Assets 261 (26) 62 TOTAL NONOPERATING REVENUES (EXPENSES) 423 (26) 62
NET INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 828 1,618 (1,412)
Capital Contributions - - - Special Item (309) (4,825) (601) Transfers In 174 1,296 3,962 Transfers Out (150) (139) (114) CHANGE IN NET POSITION 543 (2,050) 1,835 NET POSITION - Beginning of Year 44,588 17,104 (316) NET POSITION - End Of Year $ 45,131 $ 15,054 $ 1,519
161 Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For The Year Ended December 31, 2020 (In Thousands) Page 2 of 3
Radio Fleet Rental General Communications Services Services OPERATING REVENUES Charges For Services $ 3,242 $ 4,255 $ 2,675 Miscellaneous 22 - - TOTAL OPERATING REVENUES 3,264 4,255 2,675
OPERATING EXPENSES Personnel Services 975 394 845 Materials And Supplies 364 1,273 1,261 System Support Services 835 301 352 Depreciation And Amortization 2,044 2,336 3 Insurance And Claims Settlements, Net Of Recoveries 334 19 10 TOTAL OPERATING EXPENSES 4,552 4,323 2,471 OPERATING INCOME (LOSS) (1,288) (68) 204
NONOPERATING REVENUES (EXPENSE) Interest Income - - - Gain (Loss) On Disposal Of Capital Assets (90) 149 - TOTAL NONOPERATING REVENUES (EXPENSES) (90) 149 -
NET INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (1,378) 81 204
Capital Contributions - - - Special Item (59) (15) (328) Transfers In 829 463 15 Transfers Out (122) - - CHANGE IN NET POSITION (730) 529 (109) NET POSITION - Beginning of Year 32,888 10,820 182 NET POSITION - End Of Year $ 32,158 $ 11,349 $ 73
162 Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position For The Year Ended December 31, 2020 (In Thousands) Page 3 of 3
Self- Workers Medical Self- Insurance Compensation Insurance Total OPERATING REVENUES Charges For Services $ 10,711 $ 4,010 $ 659 $ 89,776 Miscellaneous - - 473 556 TOTAL OPERATING REVENUES 10,711 4,010 1,132 90,332
OPERATING EXPENSES Personnel Services 622 309 154 29,283 Materials And Supplies 86 7 7 15,544 System Support Services 2,416 647 165 23,714 Depreciation And Amortization - 1 - 9,610 Insurance And Claims Settlements, Net Of Recoveries 6,335 5,953 1,292 14,897 TOTAL OPERATING EXPENSES 9,459 6,917 1,618 93,048 OPERATING INCOME (LOSS) 1,252 (2,907) (486) (2,716)
NONOPERATING REVENUES (EXPENSE) Interest Income 14 - - 176 Gain (Loss) On Disposal Of Capital Assets - - - 356 TOTAL NONOPERATING REVENUES (EXPENSES) 14 - - 532
NET INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 1,266 (2,907) (486) (2,184)
Capital Contributions - - - - Special Item (212) (98) (40) (6,488) Transfers In - 9 72 6,821 Transfers Out - - - (526) CHANGE IN NET POSITION 1,054 (2,996) (454) (2,377) NET POSITION - Beginning of Year 41,107 3,098 11,157 160,627 NET POSITION - End Of Year $ 42,161 $ 102 $ 10,703 $ 158,250
163 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 1 of 6
Equipment Information Facilities Services Division Technology Management CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers $ 13,944 $ 557 $ 1,064 Receipts from Interfund Services - 32,860 15,700 Payments to Suppliers and Service Providers ( 7,192) ( 10,399) ( 12,071) Payments to Employees - Services and Benefits ( 2,970) ( 19,471) ( 6,077) Cash Paid for Claims and Insurance ( 59) ( 302) ( 593) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 3,723 3,245 (1,977)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds From Sale of Investments 4,030 - - Purchase of Investments ( 2,049) ( 1,365) ( 37) Interest on Investments 49 - - NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 2,030 (1,365) (37)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advances (To) From Other Funds - - - Interfund Interest Income - - - Transfers In - 1,213 1,442 Transfers Out ( 150) ( 139) ( 114) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (150) 1,074 1,328
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds From Sale of Capital Assets 578 - 65 Acquisition of Capital Assets ( 6,489) ( 644) ( 1,748) Transfers In For Capital Purposes 174 83 2,520 NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (5,737) (561) 837
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (134) 2,393 151 CASH - Beginning of Year 5,898 6,578 1,003 CASH - End of Year $ 5,764 $ 8,971 $ 1,154
164 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 2 of 6
Equipment Information Facilities Services Division Technology Management
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 405 $ 1,644 $ ( 1,474)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities Depreciation and Amortization 3,425 1,608 193 Pension Expense GASB 68 ( 281) ( 1,966) ( 585) Other Post Retirement Benefits GASB 75 15 231 29 Decrease (Increase) in Assets Receivables ( 6) ( 146) ( 11) Due From Other Funds - - 5 Inventory ( 213) - 7 Prepaid Expense - 868 65 Increase (Decrease) in Liabilities Vouchers and Accounts Payable 386 909 ( 166) Wages and Benefits Payable ( 30) ( 219) ( 68) Compensated Absences 6 281 54 Other Accrued Liabilities 16 35 ( 26) Estimated Claims Settlements - - - Total Adjustments 3,318 1,601 ( 503) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 3,723 $ 3,245 $ (1,977)
RECONCILIATION OF CASH AT END OF YEAR TO BALANCE SHEET Cash per Statement of Net Position Cash and cash equivalents, unrestricted 5,764 8,971 1,151 Cash held with trustee, restricted - - 3 TOTAL CASH - End of Year $ 5,764 $ 8,971 $ 1,154
Schedule of Noncash Transactions Bad Debt Write Off, Noncash - - - Pension Expense GASB 68 Adjustments 281 1,966 585 Other Post Retirement Benefits GASB 75 ( 15) ( 231) ( 29) Total Noncash Transactions $ 266 $ 1,735 $ 556
165 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 3 of 6
Radio General Communications Fleet Rental Services CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers $ 105 $ 4,255 $ - Receipts from Interfund Services 3,156 1 2,684 Payments to Suppliers and Service Providers ( 1,133) ( 1,592) ( 1,906) Payments to Employees - Services and Benefits ( 1,077) ( 437) ( 936) Cash Paid for Claims and Insurance ( 334) ( 19) ( 10) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 717 2,208 (169)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds From Sale of Investments - 348 101 Purchase of Investments ( 298) - - Interest on Investments - - - NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (298) 348 101
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advances (To) From Other Funds - - - Interfund Interest Income - - - Transfers In 829 - 15 Transfers Out ( 122) - - NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 707 - 15
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds From Sale of Capital Assets 5 457 - Acquisition of Capital Assets ( 103) ( 3,590) ( 18) Transfers In For Capital Purposes - 463 - NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (98) (2,670) (18)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,028 (114) (71) CASH - Beginning of Year 4,839 1,539 203 CASH - End of Year $ 5,867 $ 1,425 $ 132
166 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 4 of 6
Radio General Communications Fleet Rental Services
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ ( 1,288) $ ( 68) $ 204
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities Depreciation and Amortization 2,044 2,336 3 Pension Expense GASB 68 ( 100) ( 41) ( 90) Other Post Retirement Benefits GASB 75 3 1 16 Decrease (Increase) in Assets Receivables ( 3) - - Due From Other Funds - 1 9 Inventory - ( 21) ( 282) Prepaid Expense - - - Increase (Decrease) in Liabilities Vouchers and Accounts Payable 57 3 ( 9) Wages and Benefits Payable ( 15) ( 5) ( 10) Compensated Absences 10 2 ( 7) Other Accrued Liabilities 9 - ( 3) Estimated Claims Settlements - - - Total Adjustments 2,005 2,276 ( 373) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 717 $ 2,208 $ (169)
RECONCILIATION OF CASH AT END OF YEAR TO BALANCE SHEET Cash per Statement of Net Position Cash and cash equivalents, unrestricted 5,867 1,425 132 Cash held with trustee, restricted - - - TOTAL CASH - End of Year $ 5,867 $ 1,425 $ 132
Schedule of Noncash Transactions Bad Debt Write Off, Noncash - - - Pension Expense GASB 68 Adjustments 100 41 90 Other Post Retirement Benefits GASB 75 ( 3) ( 1) ( 16) Total Noncash Transactions $ 97 $ 40 $ 74
167 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 5 of 6
Self Workers Medical Self Total Internal Insurance Compensation Insurance Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers $ - $ - $ 473 $ 20,399 Receipts from Interfund Services 10,743 4,010 659 69,813 Payments to Suppliers and Service Providers ( 2,668) ( 752) ( 789) ( 38,501) Payments to Employees - Services and Benefits ( 671) ( 333) ( 169) ( 32,141) Cash Paid for Claims and Insurance ( 3,843) ( 3,674) ( 1,292) ( 10,127) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 3,561 (749) (1,118) 9,443
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds From Sale of Investments - 600 941 6,019 Purchase of Investments ( 554) - - ( 4,303) Interest on Investments - - - 49 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (554) 600 941 1,765
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Advances (To) From Other Funds 546 - - 546 Interfund Interest Income 13 - - 13 Transfers In - - 72 3,572 Transfers Out - - - ( 526) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 559 - 72 3,605
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds From Sale of Capital Assets - - - 1,105 Acquisition of Capital Assets - ( 18) - ( 12,611) Transfers In For Capital Purposes - 9 - 3,249 NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES - (9) - (8,257)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,566 (158) (105) 6,556 CASH - Beginning of Year 19,971 2,908 5,511 48,449 CASH - End of Year $ 23,537 $ 2,750 $ 5,406 $ 55,005
168 Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 6 of 6
Self Workers Medical Self Total Internal Insurance Compensation Insurance Service Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 1,252 $ ( 2,907) $ ( 486) $ ( 2,716)
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities Depreciation and Amortization - 1 - 9,610 Pension Expense GASB 68 ( 65) ( 32) ( 16) ( 3,178) Other Post Retirement Benefits GASB 75 10 5 2 310 Decrease (Increase) in Assets Receivables 101 - - ( 65) Due From Other Funds - - - 15 Inventory - - - ( 509) Prepaid Expense ( 157) - - 776 Increase (Decrease) in Liabilities Vouchers and Accounts Payable ( 111) ( 98) ( 617) 355 Wages and Benefits Payable ( 11) - ( 2) ( 359) Compensated Absences 18 4 1 369 Other Accrued Liabilities - - - 33 Estimated Claims Settlements 2,524 2,278 - 4,802 Total Adjustments 2,309 2,158 ( 632) 12,159 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 3,561 $ (749) $ (1,118) $ 9,443
RECONCILIATION OF CASH AT END OF YEAR TO BALANCE SHEET Cash per Statement of Net Position Cash and cash equivalents, unrestricted 23,537 2,750 5,406 55,002 Cash held with trustee, restricted - - - 3 TOTAL CASH - End of Year $ 23,537 $ 2,750 $ 5,406 $ 55,005
Schedule of Noncash Transactions Bad Debt Write Off, Noncash ( 32) - - ( 32) Pension Expense GASB 68 Adjustments 65 32 16 3,178 Other Post Retirement Benefits GASB 75 ( 10) ( 5) ( 2) ( 310) Total Noncash Transactions $ 23 $ 27 $ 14 $ 2,836
169
170 NONMAJOR ENTERPRISE FUNDS
The accrual basis of accounting is used for Enterprise Funds. The cost of providing services to the general public is financed or recovered primarily through user charges.
Chambers Creek Regional Park – Accounts for maintenance and operation of Chambers Bay Golf Course. Funding is partially provided by user fees. This golf course is operated under contract by Kemper Sports Management.
Airport – Accounts for maintenance, operation, and construction of the Pierce County and Tacoma Narrows Airports. Maintenance and operations are funded by user fees. Real Estate Excise Tax provides the funding for certain capital improvements.
Golf Course – Accounts for maintenance and operation of one county golf course. Funding is provided by user fees.
Solid Waste Management and Landfill Reserve – Accounts for revenue from disposal fees and related expenses from County solid waste landfill and composting sites operated under private contract. Also accounts for amounts held in trust to fund expenses related to current and future postclosure costs for the solid waste landfills.
Ferry Services – Accounts for maintenance and operation of the County owned ferry system. Maintenance and operations are funded by user fees and transportation grants.
171 Nonmajor Enterprise Funds Combining Statement of Net Position For The Year Ended December 31, 2020 (In Thousands) Page 1 of 2
Chambers Solid Waste Creek Management Regional and Landfill Ferry Park Golf Course Airport Reserve Services Total ASSETS Current Assets Unrestricted Cash In Treasury Pool $ 1,598 $ 204 $ 309 $ 425 $ 3,364 $ 5,900 Cash With Trustee 615 - - - - 615 Investments 2,678 205 307 6,813 3,378 13,381 Accounts Receivable, Net 179 10 110 614 - 913 Due From Other Governments - - 26 9 16 51 Inventory, At Cost 141 80 - - - 221 Prepaid Expense 41 3 - 1 - 45 Restricted Cash In Treasury Pool - - - 263 - 263 Investments - - - 6,034 - 6,034 Total Current Assets 5,252 502 752 14,159 6,758 27,423
Noncurrent Assets Restricted Landfill Postclosure Charges - - - 849 - 849 Total Noncurrent Restricted Assets - - - 849 - 849 Capital Assets Land And Land Rights - 900 8,332 762 140 10,134 Construction Work In Progress - - 180 - 154 334 Improvements Other Than Buildings 19,756 1,102 28,093 418 7,245 56,614 Buildings and Systems 3,452 405 2,616 4,228 456 11,157 Machinery and Equipment 2,812 556 1,522 1,866 29,578 36,334 Intangible Assets - - 562 - - 562 Accumulated Depreciation (16,504) (1,668) (10,991) (4,140) (13,171) (46,474) Total Capital Assets, Net 9,516 1,295 30,314 3,134 24,402 68,661 Total Noncurrent Assets 9,516 1,295 30,314 3,983 24,402 69,510 TOTAL ASSETS 14,768 1,797 31,066 18,142 31,160 96,933
Other Post Employment Benefits Deferred Outflows 20 1 11 41 13 86 Pension Deferred Outflows 77 62 58 191 48 436 DEFERRED OUTFLOWS OF RESOURCES $ 98 $ 63 $ 69 $ 231 $ 62 $ 522
172 Nonmajor Enterprise Funds Combining Statement of Net Position For The Year Ended December 31, 2020 (In Thousands) Page 2 of 2
Chambers Solid Waste Creek Management Regional and Landfill Ferry Park Golf Course Airport Reserve Services Total LIABILITIES Current Liabilities Liabilities Payable From Unrestricted Assets: Vouchers And Accounts Payable $ 146 $ 8 $ 36 $ 73 $ 516 $ 779 Due To Other Governments 96 8 48 46 3 201 Accrued Wages And Benefits Payable 10 5 5 16 8 44 Compensated Absences 12 13 1 2 5 33 Other Accrued Liabilities 1 1 105 5 121 233 Installment Contracts Payable - - - - 378 378 Unearned Revenue 863 108 - 71 - 1,042 Other Post Employment Benefits 1 - 1 2 1 5 Liabilities Payable From Restricted Assets: Vouchers And Accounts Payable - - - 49 - 49 Accrued Interest Payable - - - - 3 3 Current Portion Of Bonds Payable 625 - - - - 625 Total Current Liabilities 1,754 143 196 264 1,035 3,392
Noncurrent Liabilities Liabilities Payable From Unrestricted Assets: Compensated Absences 26 56 16 71 35 204 Installment Contracts Payable - - - - 1,133 1,133 Other Post Employment Benefits 197 9 105 401 130 842 Pension Obligations 319 215 256 830 151 1,771 Liabilities Payable From Restricted Assets Bonds Payable, Net Of Premium/Discount 13,123 - - - - 13,123 Landfill Postclosure Liabilities - - - 3,352 - 3,352 Other Accrued Liabilities - - - 48 - 48 Total Noncurrent Liabilities 13,665 280 377 4,702 1,449 20,473 TOTAL LIABILITIES 15,419 423 573 4,966 2,484 23,865
DEFERRED INFLOWS OF RESOURCES 85 79 50 274 33 521
NET POSITION Net Investment In Capital Assets (4,233) 1,296 30,312 3,134 22,892 53,401 Restricted - - - 3,697 - 3,697 Unrestricted 3,592 62 199 6,302 5,814 15,969 TOTAL NET POSITION $ (641) $ 1,358 $ 30,511 $ 13,133 $ 28,706 $ 73,067
173 Nonmajor Enterprise Funds Combining Statement Of Revenues, Expenses And Changes In Net Position For The Year Ended December 31, 2020 (In Thousands)
Chambers Solid Waste Total Creek Management Nonmajor Regional And Landfill Ferry Enterprise Park Golf Course Airport Reserve Services Funds OPERATING REVENUES Charges For Services $ 6,009 $ 1,692 $ 1,333 $ 6,625 $ 7,886 $ 23,545 Miscellaneous 82 3 - 1 - 86 TOTAL OPERATING REVENUES 6,091 1,695 1,333 6,626 7,886 23,631
OPERATING EXPENSES Personnel Services 649 515 358 1,126 510 3,158 Materials And Supplies 69 115 10 30 353 577 System Support Services 5,536 1,111 1,064 2,755 3,979 14,445 Depreciation And Amortization 1,196 25 980 297 807 3,305 Insurance And Claims Settlements, Net Of Recoveries 8 16 54 26 39 143 TOTAL OPERATING EXPENSES 7,458 1,782 2,466 4,234 5,688 21,628 OPERATING INCOME (LOSS) (1,367) (87) (1,133) 2,392 2,198 2,003
NONOPERATING REVENUES (EXPENSE) Interest Income - - 6 67 - 73 Interest Expense (456) - - - (8) (464) Operating Grants 317 - 235 199 1,224 1,975 Gain (Loss) On Disposal Of Capital Assets - 9 (1) (88) (1) (81) TOTAL NONOPERATING REVENUES (EXPENSES) (139) 9 240 178 1,215 1,503
NET INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS (1,507) (78) (892) 2,568 3,413 3,504
Special Item (170) (8) (90) (346) (113) (727) Transfers In 2,416 511 - 166 1,545 4,638 Transfers Out - - - (1,183) (42) (1,225) CHANGE IN NET POSITION 739 425 (982) 1,205 4,803 6,190 NET POSITION - Beginning of Year (1,379) 933 31,493 11,928 23,903 66,878 NET POSITION - End Of Year $ (640) $ 1,358 $ 30,511 $ 13,133 $ 28,706 $ 73,068
174 Nonmajor Enterprise Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 1 of 2
Chambers Total Creek Nonmajor Regional Golf Solid Waste Ferry Enterprise Park Courses Airport Management Services Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers $ 6,127 $ 1,723 $ 1,236 $ 6,651 $ 7,886 $ 23,623 Receipts from Interfund Services 2 - 130 - - 132 Payments to Suppliers and Service Providers ( 5,712) ( 1,216) ( 1,243) ( 2,759) ( 4,405) ( 15,335) Payments to Employees - Services and Benefits (709) (586) (392) (1,203) (553) (3,443) Payments to Other Funds - Interfund Services Used - (30) - - - (30) Cash Paid for Claims and Insurance ( 8) ( 16) ( 54) ( 26) ( 39) ( 143) Cash Received for Third Party Claims Recoveries - - - (297) - (297) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (300) (125) (323) 2,366 2,889 4,507
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds From Sale of Investments - - 105 237 7 349 Purchase of Investments (260) (205) - (1,869) (2,455) ( 4,789) Interest on Investments - - 6 66 - 72 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (260) (205) 111 (1,566) (2,448) (4,368)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating Grants 313 - 356 198 1,203 2,070 Transfers In 2,373 511 - 166 1,319 4,369 Transfers Out - - - ( 1,169) ( 42) ( 1,211)
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 2,686 511 356 (805) 2,480 5,228
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds From Sale of Capital Assets - 22 - - - 22 Acquisition of Capital Assets ( 543) ( 3) ( 187) ( 13) ( 200) ( 946) Principal Paid on Debt ( 600) - - - ( 378) ( 978) Interest Paid on Debt ( 587) - - - ( 9) ( 596) Taxes 16 3 ( 5) - - 14 Landfill Closure and post-closure care - - - 135 - 135 Transfers In For Capital Purposes 43 - - - 226 269 Transfers Out For Capital Purposes - - - ( 14) - ( 14)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (1,671) 22 (192) 108 (361) (2,094)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 455 203 (48) 103 2,560 3,273 CASH - Beginning of Year 1,758 1 357 585 804 3,505 CASH - End of Year $ 2,213 $ 204 $ 309 $ 688 $ 3,364 $ 6,778
175 Nonmajor Enterprise Funds Combining Statement of Cash Flows For the Year Ended December 31, 2020 (In Thousands) Page 2 of 2
Chambers Total Creek Nonmajor Regional Golf Solid Waste Ferry Enterprise Park Courses Airport Management Services Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ ( 1,367) $ ( 87) $ ( 1,133) $ 2,392 $ 2,198 $ 2,003
Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities Depreciation and Amortization 1,196 25 980 297 807 3,305 Pension Expense GASB 68 ( 63) ( 53) ( 40) ( 111) ( 55) ( 322)
Other Post Retirement Benefits GASB 75 8 - 4 16 5 33 Decrease (Increase) in Assets Receivables 256 19 28 25 - 328 Inventory ( 3) 6 - - - 3 Prepaid Expense ( 41) ( 3) - 6 - ( 38) Increase (Decrease) in Liabilities Vouchers and Accounts Payable ( 63) 7 ( 169) ( 105) ( 72) ( 402) Due To Other Funds - ( 30) - - - ( 30) Wages and Benefits Payable ( 8) ( 8) ( 2) ( 10) ( 4) ( 32) Compensated Absences 2 ( 10) 4 28 10 34 Other Accrued Liabilities - - 5 - - 5 Unearned Revenue ( 217) 9 - - - ( 208) Landfill Postclosure Liabilities - - - ( 172) - ( 172) Total Adjustments 1,067 ( 38) 810 ( 26) 691 2,504 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ (300) $ (125) $ (323) $ 2,366 $ 2,889 $ 4,507
RECONCILIATION OF CASH AT END OF YEAR TO BALANCE SHEET Cash per Statement of Net Position Cash and cash equivalents, unrestricted 1,598 204 309 425 3,364 5,900 Cash held with trustee, unrestricted 615 - - - - 615 Cash and cash equivalents, restricted - - - 263 - 263 TOTAL CASH - End of Year $ 2,213 $ 204 $ 309 $ 688 $ 3,364 $ 6,778
Schedule of Noncash Transactions Estimated Landfill Closure Receivable - Noncash - - - 395 - 395 Interest and Fiscal Charges Expenses 131 - - - - 131 Bad Debt Write Off, Noncash - - ( 5) - - ( 5) Pension Expense GASB 68 63 53 40 111 55 322 Other Post Retirement Benefits GASB 75 ( 8) - ( 4) ( 16) ( 5) ( 33) Total Noncash Transactions $ 186 $ 53 $ 31 $ 490 $ 50 $ 810
176 TRUST AND CUSTODIAL FUNDS
Private-Purpose Trust Funds and Custodial Funds are used by Pierce County in its fiduciary capacity as trustee or agent for assets held for other governments, special districts, private organizations and individuals. Custodial Funds do not require annual budgets.
PRIVATE-PURPOSE TRUST FUNDS
County private-purpose trust funds are accounted for in the same manner as proprietary funds.
Cash with Trustee Fund – Used to account for deposits held by the Clerk of the Superior Court pending resolution of court action, public deposits held by District Court pending resolution of court actions, jail inmate and juvenile detention inmate monies, and deposits held by the County Auditor for auto licenses.
County Surety & Impact Deposit Fund – Accounts for contractor deposits held for Planning & Public Works construction projects. The deposits are reimbursed when the construction project is complete.
Lake Tapps Trust Fund – Accounts for contributions held in fiduciary capacity for the Lake Tapps Task Force. The Task Force is dedicated to the preservation of Lake Tapps as an important public resource.
Nisqually Interpretive Center Fund – Accounts for revenues generated from timber sales. Proceeds are to be used for specific authorized activities for timber management needs.
Treasurers Trust Fund – Accounts for unclaimed effects and assets of deceased individuals
CUSTODIAL FUNDS
Custodial Funds account for resources that are held by the county in a custodial capacity and are not required to be reported pension trust funds, investment trust funds, and private purpose trust funds. Disbursements from these funds are made in accordance with applicable legislative enactment for each particular fund. These funds are used to account for resources of other governments and special districts.
OTHER GOVERNMENTS/SPECIAL DISTRICTS:
Cities And Towns Funds – A group of funds used to account for collection and payment of property taxes and other remittances which the county distributes to cities and towns within Pierce County in accordance with R.C.W. 36.29.110.
Drainage District Funds – A group of funds used by the county to account for its fiduciary responsibility as treasurer for nine drainage districts within Pierce County in accordance with R.C.W. 36.29.010.
Fire District Funds – A group of funds used to account for the county fiduciary responsibility as treasurer for seventeen fire protection districts that are within Pierce County in accordance with R.C.W. 52.16.010.
177 Miscellaneous District Funds - include the following:
State Of Washington – As an agent of the state, the county uses a group of funds to account for collections and payments of taxes, fines, forfeits and fees to the State of Washington.
South Sound 911 – Accounts for the operations of and improvements to the county-wide emergency communications system for South Sound 911, a joint venture with certain cities, towns, fire protection districts and the County. SS 911 is funded by an excise tax levied on telephone services.
Other Custodial Funds - include the following:
County Tax Title Property Fund – To account for collection and distribution of tax title property proceeds.
Property Tax Overpayment Fund – Accounts for property tax overpayment and subsequent disposition.
Tax Refunds Fund – To account for court ordered property tax refunds. Funding is provided by annual property tax levies against the specific taxing district involved in accordance with R.C.W. 84.68.030.
Other District Funds – include the following:
PC Community Network – Used to account for activities of the Pierce County Community Network, a non profit organization established under the provisions of R.C.W 70.190. Pierce County is a fiscal agent for the Network
TRAIN Consortium – T.R.A.I.N is a consortium of local government agencies to share training resources and conduct one conference per year (Support Staff Conference and Supervisor Conference held in alternating years).
Park District Funds – In accordance with R.C.W. 36.68.510, Custodial funds are used to account for the county fiduciary responsibility as treasurer for four park districts within Pierce County.
Pierce County Library Funds – A fund used to account for the county fiduciary responsibility as treasurer for the Pierce County Library in accordance with R.C.W. 27.12.070.
Port District Funds – A fund used to account for collection and payment of property taxes in accordance with R.C.W. 53.36.010.
Road District Funds – A fund used to account for the county fiduciary responsibility as treasurer for the Road Improvement District in accordance with R.C.W. 36.83.050.
School District Funds – Agency funds account for the county fiduciary responsibility as treasurer for sixteen school districts within Pierce County in accordance with R.C.W. 28A.58.440.
Sewer District Funds – Funds used to account for treasury activities of two sewer districts within Pierce County in accordance with R.C.W. 57.20.140.
Tacoma/Pierce County Health Department Fund – A fund used to account for the Pierce County and City of Tacoma joint Health Department operations recorded by Pierce County in its capacity as treasurer.
178 Water District Funds – In accordance with R.C.W. 57.20.140, the county uses Custodial funds to account for its fiduciary responsibility as treasurer for ten water districts within Pierce County.
Weed District Funds – Funds used to account for treasury activities of seven weed control districts within Pierce County in accordance with R.C.W. 17.04.250.
EXTERNAL INVESTMENT POOL FUND
External Investment Pool Fund is the external portion of investment pools that is not held in a trust. This fund accounts for the custodial fund investment activity that is held in the Local Government Investment Pool (LGIP) administered by the Washington State Treasurer.
179 Private Purpose Trust Funds Combining Statement of Fiduciary Net Position At December 31, 2020 (In Thousands)
County Surety & Total Cash With Impact Lake Nisqually Private Trustee Deposit Tapps Interpretive Treasurers Purpose Fund Fund Trust Fund Center Fund Trust Fund Trust Funds ASSETS Cash in Treasury Pool $ - $ 858 $ 20 $ 12 $ 4 $ 895 Cash with Trustee 17,104 - - - - 17,104 TOTAL ASSETS 17,104 858 20 12 4 17,999
DEFERRED OUTFLOWS OF RESOURCES ------
LIABILITIES TOTAL LIABILITIES ------
DEFERRED INFLOWS OF RESOURCES ------
FIDUCIARY NET POSITION Reserved For Specific Program Use 17,104 858 20 12 4 17,999 TOTAL NET POSITION $ 17,104 $ 858 $ 20 $ 12 $ 4 $ 17,999
180 Private Purpose Trust Funds Combining Statement of Changes in Fiduciary Net Position At December 31, 2020 (In Thousands)
County Total Surety & Private Cash With Impact Nisqually Purpose Trustee Deposit Lake Tapps Interpretive Treasurers Trust Fund Fund Trust Fund Center Fund Trust Fund Funds ADDITIONS Miscellaneous Revenue $ 4,974 $ (150) $ - $ - $ - $ 4,824 TOTAL ADDITIONS 4,974 (150) - - - 4,824
DEDUCTIONS TOTAL DEDUCTIONS ------
CHANGE IN NET POSITION 4,974 (150) - - - 4,824 NET POSITION - Beginning of Year 12,129 1,008 20 12 4 13,174
NET POSITION - End of Year $ 17,104 $ 858 $ 20 $ 12 $ 4 $ 17,998
181 Other Custodial Funds Combining Statement of Fiduciary Net Position At December 31, 2020 (In Thousands) Page 1 of 4
Drainage Cities & District Fire District Miscellaneous Towns Funds Funds Funds District Funds ASSETS Cash in Treasury Pool $ 4,286 $ 2,120 $ 31,431 $ 10,173 Cash with Trustee - - 958 - Receivables 3,095 16 3,869 7,484 Due From Other Governments - - - - Other Assets - - - - TOTAL ASSETS 7,381 2,136 36,258 17,657
DEFERRED OUTFLOWS OF RESOURCES - - - -
LIABILITIES Accounts Payable And Other Liabilities 3,095 22 17,639 10,348 Due to Other Governments - (1) - - TOTAL LIABILITIES 3,095 21 17,639 10,348
DEFERRED INFLOWS OF RESOURCES - - - -
FIDUCIARY NET POSITION Reserved For Specific Program Use 4,286 2,115 18,618 7,309 TOTAL NET POSITION $ 4,286 $ 2,115 $ 18,618 $ 7,309
182 Other Custodial Funds Combining Statement of Fiduciary Net Position At December 31, 2020 (In Thousands) Page 2 of 4
Pierce Other Other County Custodial District Park District Library Funds Funds Funds Funds ASSETS Cash in Treasury Pool $ 3,895 $ 60 $ 33,802 $ 3,284 Cash with Trustee - - - - Receivables - - 1,028 756 Due From Other Governments - - - - Other Assets - - - - TOTAL ASSETS 3,895 60 34,830 4,040
DEFERRED OUTFLOWS OF RESOURCES - - - -
LIABILITIES Accounts Payable And Other Liabilities 3,034 - 29,487 1,886 Due to Other Governments - - - - TOTAL LIABILITIES 3,034 - 29,487 1,886
DEFERRED INFLOWS OF RESOURCES - - - -
FIDUCIARY NET POSITION Reserved For Specific Program Use 861 60 5,343 2,155 TOTAL NET POSITION $ 861 $ 60 $ 5,343 $ 2,155
183 Other Custodial Funds Combining Statement of Fiduciary Net Position At December 31, 2020 (In Thousands) Page 3 of 4
School Sewer Port District Road District District District Funds Funds Funds Funds ASSETS Cash in Treasury Pool $ 177 $ 408 $ 81,475 $ 148 Cash with Trustee - - - - Receivables 441 - 10,337 - Due From Other Governments - - - - Other Assets - - - 395 TOTAL ASSETS 618 408 91,812 543
DEFERRED OUTFLOWS OF RESOURCES - - - -
LIABILITIES Accounts Payable And Other Liabilities 441 - 1,035,062 22 Due to Other Governments - - - - TOTAL LIABILITIES 441 - 1,035,062 22
DEFERRED INFLOWS OF RESOURCES - - - -
FIDUCIARY NET POSITION Reserved For Specific Program Use 177 408 (943,250) 521 TOTAL NET POSITION $ 177 $ 408 $ (943,250) $ 521
184 Other Custodial Funds Combining Statement of Fiduciary Net Position At December 31, 2020 (In Thousands) Page 4 of 4
Tacoma/Pierce County Health Water Weed Total Other Department District District Custodial Fund Funds Funds Funds ASSETS Cash in Treasury Pool $ (86) $ 1,937 $ 629 $ 173,739 Cash with Trustee - - - 958 Receivables 1 1 34 27,063 Due From Other Governments - - - - Other Assets - 4,840 - 5,235 TOTAL ASSETS (85) 6,778 663 206,995
DEFERRED OUTFLOWS OF RESOURCES - - - -
LIABILITIES Accounts Payable And Other Liabilities 93,673 29,441 73 1,224,223 Due to Other Governments - (12) - (12) TOTAL LIABILITIES 93,673 29,429 73 1,224,211
DEFERRED INFLOWS OF RESOURCES - - - -
FIDUCIARY NET POSITION Reserved For Specific Program Use (93,759) (22,651) 590 (1,017,216) TOTAL NET POSITION $ (93,759) $ (22,651) $ 590 $ (1,017,216)
185 Other Custodial Funds Combining Statement of Changes in Fiduciary Net Position At December 31, 2020 (In Thousands) Page 1 of 4
Drainage Cities & District Fire District Miscellaneous Towns Funds Funds Funds District Funds ADDITIONS Taxes $ 164,178 $ - $ 182,995 $ 31,628 Licenses & Permits - - 93 - Intergovernmental Revenue - - 8,062 - Charges for Goods & Services 9,403 - 37,902 1,530 Fines & Forfeitures 314 - 4 - Miscellaneous Revenue - 417 46,514 7,457 TOTAL ADDITIONS 173,895 417 275,570 40,615
DEDUCTIONS Current General Government 172,150 14 95,478 58,262 Public Safety - - 148,451 122 Utilities - 142 - - Economic Environment - 55 - - Social Services - - - - Culture And Recreation - - - -
Payroll Related Pass Through And Other - - 23,006 - TOTAL DEDUCTIONS 172,150 211 266,935 58,384
CHANGE IN NET POSITION 1,745 207 8,636 (17,767) NET POSITION - Beginning of Year 2,541 1,908 119,963 6,261 Prior Period Adjustment - - (109,980) 18,816
NET POSITION - End of Year $ 4,286 $ 2,115 $ 18,618 $ 7,309
186 Other Custodial Funds Combining Statement of Changes in Fiduciary Net Position At December 31, 2020 (In Thousands) Page 2 of 4
Pierce Other Other County Custodial District Park District Library Funds Funds Funds Funds ADDITIONS Taxes $ - $ - $ 58,334 $ 40,723 Licenses & Permits - - - - Intergovernmental Revenue - - 458 - Charges for Goods & Services - - - - Fines & Forfeitures - - - - Miscellaneous Revenue - - 704 - TOTAL ADDITIONS - - 59,496 40,723
DEDUCTIONS Current General Government - 4 51,715 58,243 Public Safety - - - - Utilities - - - - Economic Environment - - - - Social Services - - - - Culture And Recreation - - (20,130) (1,160)
Payroll Related Pass Through And Other - - 624 - TOTAL DEDUCTIONS - 4 32,209 57,083
CHANGE IN NET POSITION 1 (4) 27,286 (16,359) NET POSITION - Beginning of Year 860 64 17,096 50,484 Prior Period Adjustment - - (39,039) (31,970)
NET POSITION - End of Year $ 861 $ 60 $ 5,343 $ 2,155
187 Other Custodial Funds Combining Statement of Changes in Fiduciary Net Position At December 31, 2020 (In Thousands) Page 3 of 4
School Sewer Port District Road District District District Funds Funds Funds Funds ADDITIONS Taxes $ 23,216 $ - $ 547,868 $ - Licenses & Permits - - - - Intergovernmental Revenue - - 1,742,780 - Charges for Goods & Services - - 7,692 - Fines & Forfeitures - - 47 - Miscellaneous Revenue - - 1,992,389 10 TOTAL ADDITIONS 23,216 - 4,290,776 10
DEDUCTIONS Current General Government 23,157 - 1,796,513 - Public Safety - - - - Utilities - - - (21) Economic Environment - - - - Social Services - - - - Culture And Recreation - - 3,674 -
Payroll Related Pass Through And Other - - 2,341,241 10 TOTAL DEDUCTIONS 23,157 - 4,141,428 (11)
CHANGE IN NET POSITION 59 - 149,348 21 NET POSITION - Beginning of Year 118 408 (104,191) 322 Prior Period Adjustment - - (988,407) 177
NET POSITION - End of Year $ 177 $ 408 $ (943,250) $ 521
188 Other Custodial Funds Combining Statement of Changes in Fiduciary Net Position At December 31, 2020 (In Thousands) Page 4 of 4
Tacoma/Pierce County Health Water Weed Total Other Department District District Custodial Fund Funds Funds Funds ADDITIONS Taxes $ - $ - $ - $ 1,048,943 Licenses & Permits - - - 93 Intergovernmental Revenue - - 15 1,751,316 Charges for Goods & Services - - - 56,527 Fines & Forfeitures - - - 365 Miscellaneous Revenue - 2,532 1,063 2,051,085 TOTAL ADDITIONS - 2,532 1,078 4,908,329
DEDUCTIONS Current General Government 24,885 1 - 2,280,423 Public Safety - - - 148,573 Utilities - 4,274 - 4,394 Economic Environment - - 1,017 1,072 Social Services 6,369 - - 6,369 Culture And Recreation - - - (17,616)
Payroll Related Pass Through And Other - 2,532 - 2,367,413 TOTAL DEDUCTIONS 31,253 6,808 1,017 4,790,628
CHANGE IN NET POSITION (31,253) (4,276) 60 117,703 NET POSITION - Beginning of Year (47,628) (18,813) 530 29,924 Prior Period Adjustment (14,878) 438 - (1,164,843)
NET POSITION - End of Year $ (93,759) $ (22,651) $ 590 $ (1,017,216)
189 External Investment Pool Combining Statement of Fiduciary Net Position At December 31, 2020 (In Thousands)
Total External Investment Pool ASSETS Cash in Treasury Pool $ 9,112 Investments, At Amortized Cost 1,872,227 Receivables - TOTAL ASSETS 1,881,339
DEFERRED OUTFLOWS OF RESOURCES -
LIABILITIES TOTAL LIABILITIES -
DEFERRED INFLOWS OF RESOURCES -
FIDUCIARY NET POSITION Reserved For Specific Program Use 1,881,339 TOTAL NET POSITION $ 1,881,339
190 External Investment Pool Combining Statement of Changes in Fiduciary Net Position At December 31, 2020 (In Thousands)
Total External Investment Pool ADDITIONS Miscellaneous Revenue $ 452,993 TOTAL ADDITIONS 452,993
DEDUCTIONS TOTAL DEDUCTIONS -
CHANGE IN NET POSITION 452,993 NET POSITION - Beginning of Year 1,428,346
NET POSITION - End of Year $ 1,881,339
191
192 STATISTICAL SECTION
The statistical section includes certain financial and nonfinancial data to provide context for interpreting information in the financial statements, note disclosures, and required supplementary information. The additional information is provided to present the economic, financial, and social framework in which the county operates, and to assist the financial statement users to better understand the overall operations and financial health of Pierce County.
Financial Trends – Schedules 1 through 4 present trend information to provide historical context for county financial performance and financial health.
Revenue Capacity – Schedules 5 through 8 present information on key factors that affect the county’s ability to generate property and sales taxes.
Debt Capacity – Schedules 9 through 12 present information to help the reader assess affordability of current levels of outstanding debt and assess ability of the county to issue additional debt in the future.
Demographic and Economic Information – Schedules 13 and 14 present demographic and economic indicators to help the reader understand the environment in which the county financial activities take place, and to provide a history of county operations and comparisons with other governments.
Operating Information – Schedules 15 and 16 present information about county operations and resources to help the reader understand how county financial information relates to services the county provides and to the activities the county performs.
193 NET POSITION BY COMPONENT SCHEDULE 1 Last Ten Fiscal Years (Accrual Basis of Accounting) (In Thousands)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (1) (2) Governmental Activities: Net Investment In Capital Assets $ 891,619 $ 914,286 $ 943,719 $ 963,952 $ 978,091 $ 1,009,954 $ 1,043,518 $ 1,068,409 $ 1,041,817 $ 1,109,160 Restricted 74,269 70,182 76,327 59,190 90,931 124,915 133,137 155,424 230,194 215,657 Unrestricted 105,545 110,756 123,818 146,555 (11,184) 5,513 24,471 43,663 116,547 146,803 Total Net Position - Governmental 1,071,433 1,095,224 1,143,864 1,169,697 1,057,838 1,140,381 1,201,126 1,267,496 1,388,558 1,471,620 Activities
Business-Type Activities: Net Investment In Capital Assets 433,776 419,708 419,707 442,139 463,052 486,763 495,487 475,241 482,286 486,858 Restricted 37,595 66,580 72,008 67,958 57,452 44,378 26,423 35,827 35,798 22,478 Unrestricted 41,055 31,602 35,309 29,029 10,053 18,747 36,722 38,101 55,233 61,284 Total Net Position - Business-Type 512,426 517,890 527,024 539,126 530,558 549,888 558,632 549,169 573,316 570,620 Activities
Total Primary Government: Net Investment in Capital Assets 1,325,395 1,333,994 1,363,426 1,406,091 1,441,144 1,496,716 1,539,005 1,543,650 1,524,102 1,596,018 194 Restricted 111,864 136,762 148,335 127,148 148,383 169,293 159,560 191,251 265,992 238,135 Unrestricted 146,600 142,358 159,127 175,584 (1,131) 24,260 61,194 81,764 171,780 208,087 Total Net Position - Primary Government $ 1,583,859 $ 1,613,114 $ 1,670,888 $ 1,708,823 $ 1,588,395 $ 1,690,269 $ 1,759,758 $ 1,816,665 $ 1,961,874 $ 2,042,240
Notes: (1) In 2012, the Water Utility was merged into the Sewer Utility for reporting purposes. (2) In accordance with the implementation of GASB No. 63 in 2012, the measurement of Net Assets was redefined and titled Net Position. CHANGES IN NET POSITION SCHEDULE 2 Last Ten Fiscal Years (Accrual Basis of Accounting) (In Thousands) Page 1 of 2
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (2) EXPENSES Governmental Activities: General Government $ 47,493 $ 42,988 $ 38,869 $ 45,152 $ 22,252 $ 26,758 $ 43,045 $ 30,198 $ 29,022 $ 41,121 Public Safety 150,692 150,523 151,898 162,579 170,281 168,751 177,508 181,058 188,307 271,575 Utilities 19,520 24,707 20,974 22,042 13,345 11,388 12,828 12,029 13,836 13,549 Transportation 57,238 59,924 57,907 65,016 76,387 76,757 69,755 70,226 78,590 69,736 Legal And Judicial 75,819 75,405 75,447 78,931 78,439 83,611 86,336 86,249 92,239 92,716 Economic Environment 37,693 35,199 41,083 42,624 36,398 38,435 44,522 46,726 42,725 94,335 Social Services 35,795 31,362 33,509 31,594 56,825 52,773 59,391 62,506 69,586 143,768 Culture And Recreation 13,110 13,226 14,403 17,004 11,869 12,427 14,056 14,437 15,341 15,296 Interest On Long-Term Debt 6,288 6,195 4,372 7,103 4,796 4,022 3,333 3,225 3,663 3,017 Total Expenses - Governmental Activities 443,648 439,529 438,462 472,045 470,592 474,920 510,775 506,655 533,308 745,113 Business-Type Activities: Sewer Utility 44,355 49,078 50,923 49,816 56,154 55,068 83,022 89,058 87,770 91,031 Chambers Creek Regional Park 7,232 9,677 9,245 10,196 10,566 8,546 9,086 9,025 8,718 7,928 Solid Waste Management and Landfill Reserve 4,258 5,876 4,540 4,574 4,852 4,802 5,412 5,593 4,364 4,344
195 Airport 2,103 2,201 2,257 2,309 2,439 2,094 1,910 3,562 3,196 2,477 Ferry Services 4,063 4,838 3,753 4,595 6,461 5,370 4,640 7,087 7,408 5,713 Golf Course 1,885 2,173 1,905 1,900 1,832 1,954 2,055 2,513 1,777 1,794 Water Utility (1) 162 ------Total Expenses - Business-Type Activities 64,058 73,843 72,623 73,390 82,304 77,832 106,126 116,839 113,232 113,288 Total Expenses - Primary Government 507,706 513,372 511,085 545,435 552,896 552,752 616,901 623,493 646,540 858,401
PROGRAM REVENUES Governmental Activities: Charges For Services: General Government 23,439 22,204 21,590 26,975 28,848 26,230 29,027 14,818 17,149 18,516 Utilities 19,306 20,189 20,542 27,308 19,616 26,630 28,581 28,883 29,803 30,334 Legal And Judicial 15,491 15,301 16,087 12,283 13,539 14,275 13,963 14,630 14,193 11,979 Economic Environment 13,398 13,697 14,910 5,359 14,665 16,097 18,330 18,470 21,005 21,255 Other Activities 6,932 8,324 7,014 12,815 32,241 45,002 45,765 52,605 61,715 61,119 Operating Grants And Contributions 114,810 115,965 113,848 109,661 98,172 102,288 106,743 109,338 116,486 293,020 Capital Grants And Contributions 10,627 8,077 16,831 9,149 - 6,732 385 2,826 9,645 30,505 Total Program Revenues - Governmental Activities 204,003 203,757 210,822 203,550 207,081 237,254 242,795 241,570 269,996 466,728
Notes: (1) In 2012, the Water Utility was merged into the Sewer Utility for reporting purposes. (2) In accordance with the implementation of GASB No. 63 in 2012, the measurement of Net Assets was redefined and titled Net Position. CHANGES IN NET POSITION SCHEDULE 2 Last Ten Fiscal Years (Accrual Basis of Accounting) (In Thousands) Page 2 of 2
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (2) Business-type Activities: Charges For Services: Sewer Utility $ 44,506 $ 48,897 $ 54,098 $ 56,132 $ 57,496 $ 60,798 $ 60,406 $ 64,673 $ 70,709 $ 67,618 Other Activities 14,407 14,885 16,137 17,448 20,813 16,316 16,495 17,538 19,956 23,629 Operating Grants And Contributions 1,310 3,111 1,310 4,818 3,411 2,903 5,008 4,621 3,152 3,138 Capital Grants And Contributions 6,570 9,512 10,357 5,080 5,866 13,886 15,037 13,465 41,650 18,039 Total Program Revenues - Business-Type Activitities 66,793 76,405 81,902 83,478 87,586 93,903 96,946 100,296 135,466 112,425 Total Program Revenues - Primary Government 270,550 287,227 292,724 287,028 294,667 331,157 339,741 341,866 405,462 579,153 NET REVENUE (EXPENSE) Governmental Activities (235,772) (227,640) (227,640) (268,495) (263,511) (237,666) (267,981) (265,085) (263,312) (278,385) Business-Type Activities 2,562 9,279 9,279 10,088 5,282 16,071 (9,180) (16,542) 22,234 (863) TOTAL NET EXPENSE - Primary Government (233,210) (218,361) (218,361) (258,407) (258,229) (221,595) (277,161) (281,628) (241,078) (279,248)
GENERAL REVENUES AND OTHER
196 CHANGES IN NET POSITION Governmental Activities: Taxes 245,396 254,917 275,608 293,197 302,569 320,568 333,530 354,821 370,130 390,675 Investment Earnings 2,837 2,193 382 2,042 2,116 3,850 5,210 13,690 16,346 12,793 Special Item ------(40,918) Transfers 333 250 (101) (1,211) (686) (2,352) (3,040) (7,134) (675) (1,104) Other 27 2,203 391 300 (58) 182 - 445 - - Total Governmental Activities 248,593 259,563 276,280 294,328 303,941 322,249 335,700 361,821 385,801 361,446 Business-Type Activities: Taxes 289 388 471 569 - - - Investment Earnings 17 56 542 514 277 436 548 898 1,235 1,339 Special Item ------(4,289) Transfers (333) (250) 101 1,211 686 2,352 3,040 7,134 675 1,104 Other 89 3,096 (788) - (56) - 5 - 4 11 Total Business-Type Activities (227) 2,902 (145) 2,014 1,295 3,260 4,161 8,033 1,914 (1,834) Total Primary Government 248,366 262,465 276,135 296,342 305,236 325,509 339,861 369,854 387,715 359,612 CHANGE IN NET POSITION Governmental Activities 12,821 31,923 48,640 25,833 40,430 84,583 67,719 96,736 122,489 83,061 Business-Type Activities 2,335 12,181 9,134 12,102 6,577 19,331 (5,018) (8,510) 24,148 (2,697) TOTAL CHANGE IN NET POSITION OF PRIMARY GOVERNMENT $ 15,156 $ 44,104 $ 57,774 $ 37,935 $ 47,007 $ 103,914 $ 62,701 $ 88,226 $ 146,636 $ 80,364
Notes: (1) In 2012, the Water Utility was merged into the Sewer Utility for reporting purposes. (2) In accordance with the implementation of GASB No. 63 in 2012, the measurement of Net Assets was redefined and titled Net Position. FUND BALANCES - GOVERNMENTAL FUNDS SCHEDULE 3 Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (In Thousands)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(1)
General Fund: Reserved $ 881 $ 315 $ - -$ -$ $ - $ - $ - $ - $ - Unreserved 30,093 30,371 ------Nonspendable - - 238 150 89 1 63 515 214 598 Restricted - - 256 ------Committed ------Assigned - - 180 ------Unassigned - - 39,028 46,476 49,134 67,789 72,633 85,822 108,677 136,692 Total General Fund $ 30,974 $ 30,686 $ 39,702 $ 46,626 $ 49,223 $ 67,790 $ 72,696 $ 86,338 $ 108,891 $ 137,290 (2) (2)
197 All Other Governmental Funds: Reserved $ 724 $ 100 $ - -$ -$ $ - $ - $ - $ - $ - Unreserved Reported In: Special Revenue Funds 68,416 60,009 ------Debt Service Funds - 880 ------Capital Project Funds 22,558 11,991 ------Nonspendable - - 526 505 1 14 168 36 129 12 Restricted - - 99,352 65,795 79,198 101,497 92,975 106,936 180,787 165,083 Committed - - 14 80 400 1,031 1,604 938 1,282 1,537 Assigned - - 15,786 25,714 25,968 24,955 49,741 54,622 65,869 85,476 Unassigned - - (2,156) (776) (105) (2,740) (4,237) (1,770) (3,707) (991)
Total All Other Governmental Funds $ 91,698 $ 72,980 $ 113,522 $ 91,318 $ 105,461 $ 124,758 $ 140,250 $ 160,762 $ 244,360 $ 251,116 (2) (2) Notes: (1) Prior year amounts have not been restated for implementation of GASB Statement No. 54 in 2011. (2) Three funds classified as Special Revenue Funds prior to 2011 are included in General Fund for GAAP reporting purposes in 2011 and 2012 in accordance with GASB Statement No. 54. CHANGES IN FUND BALANCES SCHEDULE 4 GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (In Thousands) Page 1 of 2
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (1) (1) (1) (3)
Revenues Taxes $ 247,365 $ 254,225 $ 277,244 $ 294,585 $ 307,589 $ 319,671 $ 335,722 $ 355,113 $ 370,842 $ 391,695 Licenses And Permits 7,590 8,544 9,236 11,451 21,831 17,940 19,265 18,913 20,313 21,207 Intergovernmental Revenues 127,214 122,388 121,113 114,087 95,430 99,740 105,074 107,620 114,628 291,194 Charges For Services 58,678 62,760 67,673 62,296 76,497 99,954 107,142 101,468 110,691 111,440 Fines And Forfeits 6,449 5,820 5,326 5,329 5,159 4,829 4,391 4,364 4,260 3,483 Interest And Penalties 2,755 2,148 245 2,030 2,019 3,771 5,015 13,444 16,066 12,631 Miscellaneous 5,867 6,804 4,875 5,932 6,898 6,583 5,657 5,727 8,597 7,312 Capital Contributions ------13 2,259 884 Total Revenues 455,918 462,689 485,712 495,710 515,422 552,488 582,265 606,660 647,656 839,847 198
Expenditures Current: General Government 38,178 35,639 35,109 41,638 35,156 38,884 38,565 28,445 31,157 39,469 Public Safety 145,997 146,949 147,603 156,436 161,826 163,145 168,720 181,155 187,666 233,095 Utilities 26,663 19,345 19,867 18,712 9,601 9,136 9,913 11,053 12,189 10,532 Legal And Judicial 75,723 75,382 76,030 78,385 79,951 87,903 87,418 93,705 98,076 97,589 Transportation 51,104 51,717 52,677 55,321 54,125 55,826 58,445 60,412 62,377 58,119 Economic Environment 38,163 35,994 41,406 43,431 36,661 39,362 44,210 48,050 44,014 92,905 Social Services 35,971 31,614 33,601 31,525 57,213 54,354 59,395 64,362 71,084 144,897 Culture And Recreation 11,353 12,480 12,104 12,465 9,912 10,932 12,193 12,415 13,872 12,183 Capital Projects: Capital Projects Non Capital Project Funds - - - - 724 1,438 2,240 1,103 2,196 4,090 Capital Projects Capital Project Funds 37,711 40,529 52,698 42,030 34,417 40,560 48,174 44,172 51,605 85,606 Debt Service: Principal 6,944 7,191 8,557 11,254 14,650 11,659 11,881 12,254 12,618 14,719 Interest And Fiscal Charges 5,933 5,785 6,267 6,782 6,481 5,765 5,359 4,925 5,054 5,537 Total Expenditures 473,740 462,625 485,919 497,979 500,718 518,963 546,514 562,051 591,908 798,741
Excess (Deficiency) Of Revenues Over Expenditures $ (17,822) $ 64 $ (207) $ (2,269) $ 14,704 $ 33,525 $ 35,752 $ 44,610 $ 55,748 $ 41,106 CHANGES IN FUND BALANCES SCHEDULE 4 GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) (In Thousands) Page 2 of 2
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (1) (1) (1) (3)
Other Financing Sources (Uses): Sale Of Capital Assets $ 2,122 $ 273 $ 1,669 $ 335 $ 386 $ 206 $ 1,088 $ 2,056 $ 317 $ 1,310 General Obligation Bonds Issued - 15,195 31,030 - - - - - 52,910 - Premium On Bonds - 2,700 3,199 - 6,836 - - - 8,645 2,020 Discounts On Bonds Sold ------Bond Escrow Payments - - - - (55,589) - - - (14,228) (13,261) Refunding Bonds Issued 320 2,647 1,663 14 55,030 - - - 12,100 11,380 Transfers In 30,664 42,784 39,055 42,693 42,611 37,726 48,515 82,436 75,765 242,113 Transfers Out (34,031) (60,567) (48,953) (56,053) (47,237) (45,124) (57,871) (94,685) (83,675) (249,512) Total Other Financing Sources (Uses) (925) 3,032 27,663 (13,011) 2,037 (7,192) (8,268) (10,193) 51,833 (5,950) 199
Extraordinary And Special Items ------Net Change In Fund Balances (18,747) 3,096 27,456 (15,280) 16,741 26,333 27,483 34,417 107,581 35,156 Change In Reserves ------Total Change In Fund Balances $ (18,747) $ 3,096 $ 27,456 $ (15,280) $ 16,741 $ 26,333 $ 27,483 $ 34,417 $ 107,581 $ 35,156
Debt Service As A Percentage Of Noncapital Expenditures (2) 3.00% 3.07% 3.41% 3.90% 4.49% 3.59% 3.45% 3.27% 3.20% 2.73%
Notes: (1) Certain reclassifications were made for the years 2011 thru 2013 to enhance comparability with the current data. (2) 2011 thru 2017 ratios restated to include in noncapital expenditures capital project-related costs reported as capital outlays that were not ultimately capitalized. (3) 2018 restated to report capital contributions in revenue. TAXABLE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY SCHEDULE 5 Last Ten Fiscal Years (Property Values In Thousands)
(2) RATIO OF ASSESSED REAL PROPERTY TOTAL PROPERTY VALUE TO TOTAL DIRECT TOTAL TAX RATE (1) (2) (2) (1) ESTIMATED ESTIMATED (Per $1,000 of LEVY RESIDENTIAL R.P. COMMERCIAL MANUFACTURING TOTAL REAL PERSONAL P.P. ASSESSED ACTUAL ACTUAL Assessed YEAR PROPERTY RATIO PROPERTY PROPERTY PROPERTY PROPERTY RATIO VALUE VALUE VALUE Value)
2011 58,101,732 91.8 19,131,102 2,162,054 79,394,888 1,867,645 91.0 81,262,532 88,539,162 91.8 3.0093 2012 53,842,161 86.3 17,918,553 2,080,801 73,841,515 1,856,343 99.0 75,697,858 87,438,842 86.6 3.3047 2013 47,920,482 85.8 17,313,947 2,044,802 67,279,231 1,845,335 99.5 69,124,566 80,268,630 86.1 3.6997 2014 48,937,543 86.0 15,301,423 5,413,636 69,652,602 1,895,135 99.6 71,547,737 82,865,128 86.3 3.6681 2015 54,754,197 86.6 18,283,535 2,325,519 75,363,251 2,020,133 99.6 77,383,384 89,052,785 86.9 3.4433 2016 58,845,808 86.3 17,411,389 5,920,929 82,178,126 2,033,011 99.7 84,211,137 97,251,916 86.6 3.3403 2017 65,995,085 86.7 16,162,556 6,255,313 88,412,954 2,078,861 99.7 90,491,815 104,056,740 87.0 3.1088 2018 74,987,245 87.4 17,538,384 6,726,302 99,251,931 2,141,501 99.7 101,393,432 115,716,295 87.6 2.8548
200 2019 84,964,374 87.7 19,658,889 7,341,158 111,964,421 2,198,838 99.8 114,163,259 129,817,248 87.9 2.6183 2020 92,576,537 68.6 24,633,195 8,624,690 125,834,422 2,420,306 80.7 128,254,728 186,366,572 68.8 2.4600
Source: Pierce County Assessor-Treasurer Notes: Certain restatements were made to enhance comparability with the current data. (1) Property taxes are levied in the current year based on the prior year assessed valuations. (2) Ratio provided by Pierce County Assessor-Treasurer. PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS SCHEDULE 6 Last Ten Fiscal Years (Per $1,000 of Assessed Valuation)
TOTAL DIRECT COUNTY PORT CITIES FIRE AND LEVY CONSERVATION ROAD OF RURAL AND PROTECTION PARK FLOOD OTHER OVERLAPPING YEAR TOTAL GENERAL FUTURES LEVY STATE TACOMA LIBRARIES TOWNS DISTRICTS DISTRICTS CONTROL SCHOOLS DISTRICTS RATES
2011 3.0093 1.2415 0.0465 1.7213 2.2738 0.1819 0.5011 2.2147 1.9713 0.8992 - 4.9769 0.1186 12.8830 2012 3.3047 1.3714 0.0513 1.8820 2.4079 0.1814 0.5009 2.4088 1.8288 0.9239 - 5.5633 0.1293 13.8043 2013 3.6997 1.5263 0.0571 2.1163 2.6293 0.1833 0.4924 1.7038 1.2241 0.5236 0.0998 6.3320 0.1495 15.3572 2014 3.6681 1.5046 0.0563 2.1072 2.5271 0.1833 0.4923 1.5086 1.1466 0.7123 0.1012 6.2153 0.1366 15.0233 2015 3.4433 1.4279 0.0267 1.9887 2.3863 0.1837 0.4910 1.3631 0.7516 0.5696 0.1016 6.3389 0.1188 14.9560 2016 3.3403 1.3785 0.0516 1.9102 2.2339 0.1827 0.4904 1.4643 1.0680 1.0917 0.1000 6.1747 0.1150 14.6778 2017 3.1088 1.2848 0.0481 1.7759 2.0670 0.1841 0.4668 1.2862 0.9611 1.0688 0.0917 5.8568 0.1054 14.0788 2018 2.8466 1.1749 0.0443 1.6273 1.4553 0.1837 0.4213 1.2761 0.8815 1.2611 0.0830 5.1674 0.0911 13.9976 2019 2.6183 1.0850 0.0406 1.4926 1.3108 0.1834 0.4890 1.1655 0.7748 0.4518 0.0762 3.7097 - 11.8394 2020 2.4600 1.0130 0.0379 1.4091 1.5073 0.1840 0.4612 1.1383 0.8076 1.4728 0.1018 4.2512 0.6350 12.6627
Source: Pierce County Assessor-Treasurer
State law limits the total "regular" property tax levy to a maximum of $10 per $1,000 of assessed valuation. The aggregate levies of junior and senior taxing districts, other than the state, may not exceed $5.90 per $1,000 of
201 assessed valuation. Within this limit the county can levy up to $1.80 for general government services and $2.25 for road construction and maintenance. However, state law also dictates that unless a higher rate is approved by a majority of voters through an election, the annual increase in property taxes is limited to the lesser of the implicit price deflator, or 1% of the amount of regular property taxes lawfully levied in the highest of the three most recent years in which such taxes were levied plus an amount applicable to new construction.
Overlapping rates are those property tax rates of the state, local governments, and districts that also apply to certain property owners subject to county property tax rates. However, not all overlapping rates apply to all county property owners. For example, although the county general property tax rates apply countywide to all property owners, the additional Fire Protection Districts' rates apply only to the property owners whose property is located within each district's geographic boundaries. PRINCIPAL PROPERTY TAXPAYERS COMPARISON OF ASSESSED VALUATIONS SCHEDULE 7 For 2020 and 2011 Property Tax Levies (In Thousands)
2020 (1) 2011 (2)
PERCENT OF PERCENT OF TOTAL TOTAL ASSESSED ASSESSED ASSESSED ASSESSED TAXPAYER TYPE OF BUSINESS VALUATION VALUATION VALUATION VALUATION The Boeing Company Airplane Manufacturer $ 554,118 0.44 % $ 552,936 0.68 % Puget Sound Energy/Gas Electric and Natural Gas Utility 456,505 0.36 $ 466,284 0.57 Tacoma Mall Partnership #9600 Retail Shopping Mall 300,114 0.24 $ 188,529 0.23 Puget Sound Energy/Elec Electric and Natural Gas Utility 268,613 0.21 $ - - U S Oil & Refining Co Oil Refining 238,948 0.19 $ - - Rocktenn Cp LLC Telecommunications 222,365 0.18 $ - - Northwest Building LLC Industrial Park 202,563 0.16 $ 122,131 0.15 Prologis Targeted U S Logistics Fund LP Real Estate 199,908 0.16 $ - - Comcast Cable Communications Management Llc Communications 181,258 0.14 $ - -
202 Costco Wholesale Corporation Retail Sales 171,583 0.14 $ 129,817 0.16 IH6 Property Washington LP Real Estate 159,228 0.13 $ 166,554 0.20 Total Assessed Valuation of Principal Taxpayers $ 2,955,203 2.35 % $ 1,626,251 2.00 %
Total Assessed Valuation of Pierce County (3) $ 125,834,422 $ 81,262,532
Notes: (1) 2019 taxable value is basis for 2020 property tax levies. (2) 2010 taxable value is basis for 2011 property tax levies. (3) Totals include valuation of real, personal and operating properties. PROPERTY TAX LEVIES AND COLLECTIONS SCHEDULE 8 Pierce County Operating Funds Last Ten Fiscal Years (In Thousands)
COLLECTED WITHIN TOTAL COLLECTIONS FISCAL YEAR OF LEVY TO DATE ORIGINAL NET TOTAL CURRENT PERCENT COLLECTIONS TOTAL PERCENT OF FISCAL TAX ADJUSTMENTS ADJUSTED TAX OF ORIGINAL IN SUBSEQUENT TAX ADJUSTED YEAR LEVY TO TAX LEVIES LEVY COLLECTIONS LEVY YEARS COLLECTIONS LEVY
2011 164,637 (1,002) 163,635 159,310 96.76 4,090 163,400 99.86 2012 168,969 (270) 168,700 163,119 96.54 3,115 166,228 98.53 2013 171,903 (192) 171,711 167,420 97.39 3,615 171,027 99.60 2014 175,449 (9) 175,440 171,568 97.79 2,474 174,031 99.20 2015 180,080 (59) 180,021 177,843 98.76 4,235 177,843 98.79 2016 184,492 3,988 188,479 183,708 99.58 4,254 187,962 99.73
203 2017 189,517 4,002 193,520 189,009 99.73 6,341 195,350 100.95 2018 195,376 4,155 199,532 195,312 99.97 5,868 201,180 100.83 2019 201,655 5,592 207,247 201,867 100.11 4,050 205,917 99.36 2020 $ 207,689 $ 3,013 $ 210,702 $ 207,593 99.95 % $ 207,593 98.52 %
Source: Pierce County Assessor-Treasurer RATIOS OF OUTSTANDING DEBT BY TYPE SCHEDULE 9 Last Ten Fiscal Years (In Thousands)
PERCENT OF GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES ESTIMATED ACTUAL GENERAL GENERAL TAXABLE TOTAL LONG- PERCENT OF OBLIGATION OBLIGATION REVENUE TOTAL LONG- VALUE OF TERM DEBT PERSONAL FISCAL BONDS INSTALLMENT BONDS BONDS INSTALLMENT TERM DEBT PROPERTY PER CAPITA INCOME YEAR (1) CONTRACTS (1) (1) CONTRACTS (1) (2) (3) (3) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated) (Restated)
2011 128,286 2,508 20,427 60,618 6,598 218,437 0.25 272.31 0.66 2012 138,692 4,999 19,335 268,496 5,909 437,431 0.50 541.24 1.23 2013 163,837 6,288 18,272 261,524 5,405 455,326 0.57 559.03 1.26 2014 151,719 5,928 17,689 288,642 4,902 468,880 0.57 570.90 1.32 2015 143,248 5,610 15,965 302,744 31,528 499,095 0.56 607.69 1.31 2016 128,896 5,406 16,628 294,248 63,894 509,072 0.52 602.82 1.26
204 2017 115,705 5,076 15,919 285,618 66,241 488,559 0.47 568.19 1.13 2018 102,399 4,667 15,203 276,944 63,156 462,369 0.40 530.11 1.01 2019 148,138 4,587 14,480 268,189 59,955 495,349 0.38 557.64 1.02 2020 $ 131,572 $ 3,868 $ 13,749 $ 255,681 $ 56,792 461,663 0.25 512.56 N/A
Notes: Details regarding the county's outstanding debt can be found in the notes to the financial statements. (1) Presented net of unamortized original issuance discounts and premiums. (2) See Schedule 5 for estimated actual value of taxable property. (3) See Schedule 13 for population and personal income data. (Restated) 2013 and prior years have been restated to be net of unamortized original issuance discounts and premiums for comparability. 2015 Governmental activities General Obligation bonds erroneously included 15.965M Business type activities General Obligation bonds RATIOS OF GENERAL BONDED DEBT OUTSTANDING SCHEDULE 10 Last Ten Fiscal Years (In Thousands)
PROPRIETARY PERCENT OF ESTIMATED TOTAL GENERAL GENERAL GENERAL TOTAL GENERAL ACTUAL TAXABLE VALUE BONDED DEBT PER OBLIGATION BONDS OBLIGATION BONDS BONDED DEBT OF PROPERTY CAPITA FISCAL YEAR (1) (1) (1) (1) (2) (Restated) (Restated) (Restated) (Restated) (Restated)
2011 128,286 20,427 148,713 0.17 185 2012 138,692 19,335 158,027 0.18 196 2013 163,837 18,272 182,109 0.23 224 2014 151,719 17,689 169,408 0.20 206 2015 143,248 15,965 159,213 0.18 194 2016 128,896 16,628 145,524 0.15 172 2017 115,705 15,919 131,624 0.13 153 205 2018 102,399 15,203 117,602 0.10 135 2019 148,138 14,480 162,618 0.13 183 2020 $ 255,681 $ 13,749 269,430 0.14 $ 299
Notes: Details regarding the county's outstanding debt can be found in Note 9 in the financial statements. (1) Presented net of unamortized original issuance discounts and premiums. (2) See Schedule 5 for estimated actual value of taxable property. (Restated) 2013 and prior years have been restated to be net of unamortized original issuance discounts and premiums for comparability. (Restated) 2015 Governmental activities General Obligation bonds erroneously included 15.965M Business type activities General Obligation bonds. LEGAL DEBT MARGIN INFORMATION SCHEDULE 11 Last Ten Fiscal Years (In Thousands)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Restated) Total Assessed Value $ 81,262,532 $ 75,697,857 $ 69,124,566 $ 71,547,737 $ 77,383,384 $ 84,211,137 $ 90,491,815 $ 101,393,432 $ 114,163,259 $ 128,254,728 Limited Tax General Obligation Debt Not Requiring A Vote:
Debt Limit: 1.5% of Total Assessed Value 1,218,938 1,135,468 1,036,868 1,073,216 1,160,751 1,263,167 1,357,377 1,520,901 1,712,449 1,923,821
Debt applicable to debt limit 181,771 190,883 212,081 206,839 237,185 239,795 229,035 211,400 253,348 241,205 Less: Amounts set aside to repay Limited Tax General Obligations ------
Total net debt applicable to debt limit 181,771 190,883 212,081 206,839 237,185 239,795 229,035 211,400 253,348 241,205 Remaining Debt Capacity Not Requiring Vote 1,037,167 944,585 824,787 866,377 923,566 1,023,372 1,128,342 1,309,502 1,459,101 1,682,616
Total net debt applicable to debt limit as a percent of debt limit 14.91% 16.81% 20.45% 19.27% 20.43% 18.98% 16.87% 13.90% 14.79% 12.54%
Total General Obligation Debt
206 Including Voted Debt:
Debt Limit: 2.5% of Total Assessed Value $ 2,031,563 $ 1,892,446 $ 1,728,114 $ 1,788,693 $ 1,934,585 $ 2,105,278 $ 2,262,295 $ 2,534,836 $ 2,854,081 $ 3,206,368
Debt applicable to debt limit 181,771 190,883 212,081 206,839 237,185 239,795 229,035 211,400 253,348 241,205 Less: Amounts set aside to repay Limited Tax General Obligations ------
Total net debt applicable to debt limit 181,771 190,883 212,081 206,839 237,185 239,795 229,035 211,400 253,348 241,205 Remaining Debt Capacity Including Voted Debt 1,849,792 1,701,563 1,516,033 1,581,854 1,697,400 1,865,484 2,033,260 2,323,436 2,600,734 2,965,164 Total net debt applicable to debt limit as a percent of debt limit 8.95% 10.09% 12.27% 11.56% 12.26% 11.39% 10.12% 8.34% 8.88% 7.52%
Source: Annual Summary of Assessed Value of Property prepared by Pierce County Assessor-Treasurer Note: Details regarding the county outstanding debt can be found in Note 9 of the financial statements. PLEDGED-REVENUE COVERAGE SCHEDULE 12 Last Ten Fiscal Years (In Thousands) REVISED REVISED REVISED REVISED REVISED 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (3) (4) (4) (4) (4) (4) (4)
Operating Revenues $ 43,573 $ 47,740 $ 54,098 $ 56,150 $ 57,099 $ 60,251 $ 60,013 $ 64,151 $ 70,099 $ 67,005 Connection Charges 2,046 2,383 4,582 4,817 5,097 6,751 7,512 8,781 8,176 7,982 Unrestricted Investment Income 173 130 535 409 297 436 487 721 990 1,267 Miscellaneous Adjustments 399 716 - - 397 547 394 390 543 490 Total Revenue 46,191 50,969 59,215 61,376 62,890 67,985 68,405 74,043 79,808 76,744
Less: Operating And Maintenance Expense (1) 28,455 30,512 34,971 35,598 36,871 34,799 36,796 37,456 34,331 35,612 Net Revenue Available 17,736 20,457 24,244 25,778 26,019 33,186 31,610 36,588 45,477 41,132 Assessment Collections And Withdrawals (5) 2,946 785 1,726 1,164 395 411 364 996 151 90
Net Revenue And Assessment
207 Collections Available $ 20,682 $ 21,242 $ 25,970 $ 26,942 $ 26,414 $ 33,597 $ 31,974 $ 37,584 $ 45,628 $ 41,222
Annual Revenue Debt Service $ 3,881 $ 4,839 $ 15,120 $ 16,154 $ 17,695 $ 18,831 $ 19,061 $ 18,999 $ 18,936 $ 19,136 Junior Lien Debt Service 300 294 913 256 527 527 526 4,543 4,542 4,488 Total Debt Service $ 4,181 $ 5,133 $ 16,033 $ 16,410 $ 18,222 $ 19,358 $ 19,588 $ 23,542 $ 23,477 $ 23,625
Revenue Bond Coverage Ratio (2) 5.33 4.39 1.72 1.67 1.49 1.78 1.68 1.98 2.41 2.15
Total Coverage Ratio 4.95 4.14 1.62 1.64 1.45 1.74 1.63 1.60 1.94 1.74
Notes: (1) Per bond covenants, maintenance and operating expenses exclude depreciation and amortization of utility plant. (2) The Sewer Utility is obligated by bond ordinance to collect net revenue equal to at least 1.25 times the defined debt service requirements payable from utility revenues. (3) 2013 and certain other prior years have been restated to enhance comparability with current data. (4) Annual Revenue Debt Service and Junior Lien Debt Service restated to represent 100% of annual parity bond debt service (5) Revised 2015-2019 Assessment Collections And Withdrawals. SCHEDULE 13 DEMOGRAPHIC STATISTICS Last Ten Fiscal Years
MEDIAN PERSONAL PER CAPITA FISCAL HOUSEHOLD INCOME PERSONAL SCHOOL UNEMPLOYMENT YEAR POPULATION INCOME (In Thousands) INCOME ENROLLMENT RATE (1) (1) (2) (3) (4) 2011 802,150 56,114 31,946,268 39,826 125,537 10.1 2012 808,200 57,162 33,258,186 41,151 126,956 9.3 2013 814,500 57,238 34,302,498 42,115 126,315 8.3 2014 821,300 59,998 36,548,565 44,501 127,583 7.0 2015 830,120 59,566 38,492,409 46,370 132,051 6.5 2016 844,490 61,042 40,552,080 48,020 134,573 6.0 2017 859,400 65,517 42,995,131 50,029 136,245 5.4 208 2018 872,220 70,321 45,753,481 52,456 138,913 5.3 2019 888,300 71,629 48,481,266 54,578 140,085 5.1 2020 900,700 N/A N/A N/A 141,383 9.8
Sources:
(1) Washington State Office of Financial Management, Research Division (Median Household Income - 2018 is preliminary estimate; 2019 is a projection) (2) Federal Bureau of Economic Analysis - 2019 updated (3) Superintendent of Public Instruction (4) Bureau of Labor Statistics
Notes: Starting in 2018 the Per Capita Personal Income is calculated by dividing the Personal Income by Total Population N/A Not Available SCHEDULE 14 PRINCIPAL EMPLOYERS Comparison of Number of Employees and Percent of Total Employment For 2020 and 2011
2020 2011
PERCENT OF PERCENT OF TOTAL COUNTY TOTAL COUNTY TEN LARGEST EMPLOYERS EMPLOYEES RANK EMPLOYMENT EMPLOYEES RANK EMPLOYMENT Federal Government 56,810 1 14.00 % 56,899 1 16.35 % Local Government 39,017 2 9.61 33,744 2 9.70 Multicare Health System 8,264 3 2.04 6,756 3 1.94 Franciscan Health System 5,682 4 1.40 5,507 4 1.58 Safeway & Albertsons 2,153 5 0.53 1,123 9 0.32 Emerald Queen Casino 2,146 6 0.53 2,230 5 0.64
209 Fred Meyer Stores 1,802 7 0.44 1,301 8 0.37 Amazon Distribution Centers 1,800 8 0.44 - - - Boeing 1,550 9 0.38 1,450 6 0.42 Costco 1,318 10 0.32 1,115 10 0.32 Wal-Mart Stores, Inc. - - - 1,447 7 0.42 Total Principal Taxpayer Employment 120,542 29.69 % 111,572 32.06 %
Total Employment In Pierce County 405,946 348,021
Source: Bureau of Labor Statistics and Tacoma-Pierce County Economic Development Board SCHEDULE 15 FULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES By Functional Activity Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Functional Activity: General Government 476 482 478 485 484 491 500 507 518 537 Public Safety 834 831 812 750 759 790 793 809 816 830 Physical Environment 372 366 381 398 398 393 403 393 391 410 Transportation 349 346 351 352 356 349 351 355 357 347 Legal And Judicial 732 717 707 711 713 719 723 732 733 736 Economic Environment 88 85 87 91 83 78 79 77 76 75 Health And Human Services 141 131 115 121 117 118 135 142 149 163 Culture And Recreation 57 66 66 69 70 73 73 75 72 79
210 Total Equivalent County Governmental Employees 3,049 3,024 2,997 2,977 2,980 3,011 3,057 3,090 3,112 3,177
Source: The full-time equivalent numbers presented were adopted for that year by the Pierce County Council. SCHEDULE 16 OPERATING AND CAPITAL INDICATORS BY FUNCTION Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Property Activity: Single Family Residential (SFR) Building Permits 955 1,190 1,468 1,368 1,431 1,495 1,796 1,550 1,587 1,595 Value of Residential Permits (in thousands) $ 232,250 $ 317,696 $ 398,574 $ 389,756 $ 416,075 $ 473,938 $ 540,028 $ 467,640 $ 480,229 $ 467,350 Number of Assessed Parcels 336,764 336,802 336,349 337,423 337,690 340,336 342,072 343,456 345,243 347,205 Number of Parcel Recordings 24,512 24,593 29,485 27,090 29,732 32,960 34,599 33,135 31,797 32,150
Public Safety: Adult Detention: Bookings 22,944 21,242 17,472 13,929 14,342 15,870 18,036 18,515 18,209 8,555 Average Daily Population 1,279 1,286 1,148 1,132 1,139 1,156 1,159 1,091 1,030 658 Juvenile Detention: Admissions 1,590 1,539 1,608 1,571 1,454 1,238 1,224 1,202 966 351 Average Daily Population 34 34 30 30 35 33 24 26 21 11 Sheriff Department: Number of Employees 373 362 362 367 373 384 392 407 416 424 Number of Sheriff Vehicles in Fleet 344 357 348 345 344 359 380 376 407 407
Judicial System: Felony Filings 5,157 4,865 4,950 5,219 5,193 5,103 4,927 5,201 4,969 3,092
211 Misdemeanor Filings 9,536 11,728 9,870 8,358 8,208 7,149 8,271 7,792 6,178 2,437
Parks and Land Use: Acres of Parks 5,025 5,123 5,040 5,039 5,039 5,101 5,145 5,183 5,243 5,219 County Golf Courses 3 3 3 3 3 3 3 2 2 2
Public Works: Miles of County Roads 1,553 1,554 1,557 1,557 1,550 1,556 1,558 1,562 1,567 1,573 Bridges 148 148 148 149 149 153 155 155 154 155 Traffic Signals 97 114 117 122 123 124 129 130 132 140 Ferry Vessels 2 2 2 2 2 2 2 2 2 2
Sewer Utility: Sewer Customers - Residential 56,245 52,659 58,103 58,935 59,513 60,750 61,669 62,990 64,305 65,518 Sewer Customers - Commercial 2,687 2,786 2,751 2,753 2,725 3,190 2,762 2,773 2,785 2,823 Wastewater Treated (Millions of gallons per day) 19.24 20.10 20 20 17.92 18.75 19.06 18.32 18.03 19.04 Sewer Rates: Single Family Residence $ 34.19 $ 37.83 $ 41.86 $ 42.82 $ 44.18 $ 45.64 $ 47.14 $ 48.44 $ 50.04 $ 51.94 Multi-Family Residence $ 30.10 $ 33.32 $ 36.89 $ 37.74 $ 38.61 $ 39.88 $ 41.19 $ 42.32 $ 43.72 $ 45.38 Commercial - Fixed Monthly Rate $ 10.31 $ 11.41 $ 12.63 $ 12.92 $ 13.22 $ 13.66 $ 14.11 $ 14.50 $ 14.98 $ 15.55 $ 2.87 - $ 3.18 - $ 3.52 - $ 3.60 - $ 3.68 - $ 3.80 - $3.92 - $4.03 - $4.17 - $5.77 - Commercial CCF Usage Charges $ 5.80 $ 6.42 $ 7.11 $ 7.27 $ 7.44 $ 7.69 $7.94 $8.16 $8.43 $8.75
County Facilities: Square Footage of Facilities Maintained 1,469,408 1,479,956 1,479,956 1,452,486 1,463,037 1,489,036 1,565,124 1,653,704 1,658,053 1,686,334
Source: Internal Workload Service Data