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County of Monterey State of California County of Monterey State of California Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2016 Prepared and Submitted by the Office of the Auditor-Controller Michael J. Miller, CPA, CISA McWay Falls Julia Pfeiffer Burns State Park, Big Sur Saddle Rock Ranch In 1924 Lathrop Brown and his wife Helene Hooper Brown visited Big Sur California. They bought the Saddle Rock Ranch totaling 1,600 acres from pioneer homesteader Christopher McWay. Helene Hooper Brown was a good friend of Julia Pfeiffer Burns. Julia' granddaughter Esther Julia Pfeiffer and her husband Hans Ewoldson were caretakers of the ranch for many years. Residences The Browns first built a rough redwood cabin on a site at the top of cliffs opposite McWay Falls. They replaced that in 1940 with a modern two-story home named Waterfall House. The entryway was inlaid with an ornamental brass fish, a gold octopus, and a compass rose. The interior was decorated with fine furnishings and classic paintings. During the construction of the Carmel San Simeon Highway, Saddle Rock Ranch foreman Hans Ewoldsen worked in the machine shop of the highway construction crew to build a Pelton wheel. He used hand-split redwood from the canyon and other materials he bought. He installed the wheel on McWay Creek in 1932. The undershot wheel ran a 32-volt generator and was the first electric power in the Big Sur area. It supplied power to three residences, a blacksmith shop, and the Funicular railway. Donated to the State Lathrop and Hélène Brown left Big Sur for Florida in 1956 where Lathrop died in 1959. In 1961 Hélène Hooper Brown donated the entire property to the state, stipulating that it be used as a park and named for her good friend, Julia Pfeiffer Burns, "a true pioneer." She included the requirement that Waterfall House be converted into a "museum for the custody and display of indigenous Indian relics, flora and fauna of the California coastal area, and historical objects pertaining to the Big Sur country." The museum could not be completed in time for several reasons, including competing museums, shortage of funds, and poor access to the site. As required by the terms of the gift, the mansion was demolished in 1965. Current Use McWay Falls is visible from the shoulder of Highway 1, but not from the road itself. From the parking lot on Highway 1, visitors walk down a half-mile dirt path toward the ocean, through a short tunnel under the highway to the overlook. The Waterfall Overlook of McWay Falls was built on the site formerly occupied by the Brown's home. Visitors to the site today can view the remnants of the home's foundation, landscaping, including palm trees, and Funicular railway. The Pelton wheel is displayed in a small building. Cover Photo Credit: Becky Gong, Auditor Controller Analyst I COUNTY OF MONTEREY STATE OF CALIFORNIA Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2016 Prepared and Submitted by the Office of the Auditor-Controller Michael J. Miller, CPA, CISA This page intentionally left blank COUNTY OF MONTEREY COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2016 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................................................... i Certificate of Achievement ........................................................................................................................................ vii Directory of County Officials ................................................................................................................................... viii Organizational Structure ............................................................................................................................................ ix FINANCIAL SECTION Independent Auditor's Report ................................................................................................................................. 1 Management Discussion and Analysis ................................................................................................................... 3 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ................................................................................................................................. 19 Statement of Activities ...................................................................................................................................... 20 Fund Financial Statements: Balance Sheet Governmental Funds ................................................................................................................. 25 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................................................................. 26 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ........................... 27 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities - Governmental Activities ........ 28 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General ............. 29 Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Behavioral Health ......................................................................................................................................... 30 Statement of Net Position Proprietary Funds .................................................................................................... 31 Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds ......................................... 33 Statement of Cash Flows ................................................................................................................................... 34 Statement of Fiduciary Net Position ................................................................................................................. 36 Statement of Changes in Fiduciary Net Position ............................................................................................... 37 Notes to the Financial Statements ..................................................................................................................... 41 Required Supplementary Information (Other than MD & A): Schedule of Funding Progress - Retiree Healthcare Plan .................................................................................. 88 Schedule of Changes in Net Pension Liability and Ralated Ratios ................................................................... 89 Schedule of the Proportionate Share of the Net Pension Liability .................................................................... 91 Schedule of Pension Contributions ................................................................................................................... 92 Schedule of Pension Contributions ................................................................................................................... 93 Schedule of Pension Contributions ................................................................................................................... 94 Supplementary Information: Nonmajor Governmental Funds: COUNTY OF MONTEREY COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2016 TABLE OF CONTENTS PAGE ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................Combining Balance Sheet Nonmajor Governmental Funds 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................Governmental Funds 99 Special Revenue Funds-nonmajor: ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................Combining Balance Sheet Special Revenue-nonmajor 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................Special
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