Washoe County Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2005 Report to the Board of County Commissioners Presented by Katherine L. Garcia, Comptroller November 15, 2005

2 FINANCIAL AUDIT: Unqualified Opinion Financial position, changes in financial position presented fairly - Accurate Reliable Meets standards for auditing, certification GASBS 44 early-implemented Economic Condition Reporting – The Statistical Section

3 COMPLIANCE AUDIT: Unqualified opinion Audit findings – Federal Awards No material weaknesses Qualified as a low risk auditee

STATEMENT OF CHANGES IN NET ASSETS

GOVERNMENT-WIDE REVENUES BY SOURCE

GOVERNMENT-WIDE EXPENSES BY TYPE

GOVERNMENT-WIDE EXPENSES BY FUNCTION

STATEMENT OF NET ASSETS

NET CAPITAL ASSETS *Restated for infrastructure acquired from June 30, 1980.

OUTSTANDING DEBT DEBT $ Millions PRINCIPAL OUTSTANDING JULY 1, 2004 DEBT ISSUED PRINCIPAL MATURED/ CALLED PRINCIPAL OUTSTANDING JUNE 30, 2005 % OF TOTAL General Obligation Bonds $ 114.7$ 13.9($10.4)$ General Obligation- Revenue Backed Bonds (3.1) Special Assessment Bonds (0.5)2.81 Revenue Bonds 21.6-(0.7)20.99 Certificates of Participation 13.7-(1.6)12.15 TOTAL $ 225.3$ 31.3($ 16.3)$ %

11 CONCLUSIONS: How are we doing? Did we meet current year budgeted goals? Can current financial health be maintained?

12 Did We Meet Current Year Budgeted Goals? Functional expenditures met budget limitations Technology refresh program was maintained Revenues were adequate to support operations Debt issued for capital outlay, not operations Federal grant revenue increased $9.7 million, to $36.7 million Stabilization Fund retained $3.25 million in cash

13 Did We Meet Current Year Budgeted Goals? (Continued) Increase in net assets of $67 million All components of net assets are positive Value of capital assets exceed related debt by $701 million Current assets adequate to meet current obligations Cash ratio – 3.54% Debt Capacity: Legal debt margin of $878 million Revenues pledged for debt and/or related cash are adequate to service pledged debt

14 Can Current Financial Health Be Maintained? FY 2006 Major revenue sources are projected to increase Slower pace Ad valorem tax rate remained the same Tax rate is 32 cents below the allowed rate In the last 10 years, lowest current year collection rate is 98.36% Base budget requirements for functional expenditures were available New positions were added for Public Safety and Animal Services Positions continue to decline on a per capita basis Ongoing investment in capital

15 FINANCIAL POLICIES TO SUSTAIN SERVICE EFFORTS Debt issued for capital projects, not operations Debt service cant exceed the life of the asset acquired Maintain an adequate General Fund balance, 7% - 9% Designate one-time funds for capital projects, not ongoing service needs Constant financial monitoring systems Actual to plan

16 ISSUES ON THE HORIZON Property tax initiatives AB 489 GASBS 43 and 45 Recognition of postemployment benefits Impact on governments

Are there any questions?