Washoe County Comprehensive Annual

Financial Report for the Fiscal Year Ended

June 30, 2004Report to the Board of County

CommissionersPresented by

Katherine L. Garcia, ComptrollerNovember 16, 2004

FINANCIAL AUDIT:Unqualified OpinionFinancial position, changes in

financial position presented fairly -– Accurate– Reliable– Meets standards for auditing, certification

GASB 40 early-implemented– Deposit and Investment Risk Disclosures

COMPLIANCE AUDIT:

Unqualified opinionAudit findings – Federal AwardsNo material weaknessesQualified as a low risk auditee

STATEMENT OF NET ASSETS

$7

$564

$49

$300

$223

$80

$87

$109

$421

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Millions

NetAssets

LiabilitiesAssets

Cash and investments

Other current assets

Net capital assets

Long-term assets

Liabilities due within one year

Long-term liabilities

Invested in capital assets,net of related debt

Restricted net assets

Unrestricted net assets

CASH AND INVESTMENTS

25

19

17

14

51

69

28

39

37

0

20

40

60

80

100

120

140

160

180

200

MIL

LIO

NS

($

)

RESTRICTED UNRESTRICTED

Unspent bondproceeds/Interest earnings

Capital projects

Debt service

Component units

Insurance claims

Other

Business-type activities

Governmental activities

Pre-Funded Retiree HeatlhBenefits Fund

NET CAPITAL ASSETS

$29$18

$129

$137

$43

$92

$44$20

$126

$156

$73

$98

$46$20

$128

$192

$79

$99

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

Millions

2002 2003 2004

Land

Construction in Progress

Land Improvements

Buildings/improvements

Equipment

Infrastructure

7

OUTSTANDING DEBTDEBTDEBT

$ Millions$ Millions

PRINCIPAL PRINCIPAL OUTSTANDING OUTSTANDING

JULY 1, 2003JULY 1, 2003

DEBTDEBTISSUEDISSUED

PRINCIPAL PRINCIPAL MATURED/ MATURED/

CALLEDCALLED

PRINCIPALPRINCIPALOUTSTANDINGOUTSTANDING

JUNE 30, 2004JUNE 30, 2004

%%OFOF

TOTALTOTAL

General Obligation General Obligation BondsBonds

$ 112.8 $ 13.3 ($11.4) $ 114.7 50

General Obligation- General Obligation- Revenue Backed Revenue Backed BondsBonds

71.6 3.8 (1.8) 73.6 32

Special Assessment Special Assessment BondsBonds

2.2 1.1 (1.6) 1.7 1

Revenue BondsRevenue Bonds 20.8 1.2 (0.4) 21.6 10

Certificates of Certificates of ParticipationParticipation

15.4 - (1.6) 13.8 6

Capital Leases, NotesCapital Leases, Notes 2.5 - (0.3) 2.2 1

TOTALTOTAL $ 225.3 $ 19.4 ($ 17.1) $ 227.6 100%

STATEMENT OF CHANGES IN NET ASSETS

324

278

46

374

305

69

396

325

71

423

339

84

0

50

100

150

200

250

300

350

400

450

Mill

ions

($)

2001 2002 2003 2004

Revenues

Expenses

Changes in NetAssets

GOVERNMENT-WIDE REVENUES BY SOURCE

55

4434

75

117

90

5035

77

122

88

5534

81

139

84

62

35

90

152

0

50

100

150

200

250

300

350

400

450

Mil

lion

s ($

)

2001 2002 2003 2004

Ad Valorem Taxes

ConsolidatedTaxes

Other GeneralRevenue

Charges forServices

Grants, Interest,Contributions

GOVERNMENT-WIDE EXPENSES BY TYPE

913

90

40

126

915

102

45

134

1016

108

49

142

1018

108

55

148

0

50

100

150

200

250

300

350

Mil

lion

s ($

)

2001 2002 2003 2004

Salaries and wages

Employee benefits

Services and supplies

Depreciation

Interest/fiscal charges

GOVERNMENT-WIDE EXPENSES BY FUNCTION

20817

151928

38

44

89

22815

1723

32

40

55

93

25919

1823

37

42

51

101

279

171724

43

44

55

103

0

50

100

150

200

250

300

350

Mill

ion

s ($

)

2001 2002 2003 2004

Public safety

GeneralgovernmentJudicial

Welfare

Culture andrecreationHealth andsanitationPublic works

Interest and fiscalchargesBusiness-typeexpenses

Are there any questions?

ASSETS:

Total - $920 millionCurrent - $349 million - 38%Net capital assets - $564 million -

61%Long-term assets - 1%

Statement of Net Assets

LIABILITIES:

Total $303 millionDue within one year - $80 million -

26%Noncurrent - $223 million - 74%

NET CAPITAL ASSETS:

Total - $564 millionNet Additions - $63 millionDepreciation - $16 million

DEBT:

Total - $228 millionIssued $19 millionPrincipal paid - $17 millionInterest paid - $10 millionLegal debt margin > $xxx million

LIQUIDITY:

Ability to meet current obligations–Cash ratio:

•Current – 3.62•2003 - 3.52•2002 - 3.23

–Current assets exceed total liabilities

NET ASSETS:

Total - $617 million

–increase of 16% or $85 millionInvested in capital assets,

net of related debt, 68% Restricted, 18% Unrestricted, 14%

STATEMENT OF CHANGES IN NET ASSETS

Total revenues - $423 million, 7% increase

Total expenses - $339 million, 4% increase

Change in net assets - $84 million, 18% increase

PRIMARY REVENUE SOURCES:

Property taxes - 36%, ($152 million), 9% increase

Consolidated taxes - 21%, ($90 million), 11% increase

Federal Grants - 5% of total, ($23million), 15% increase

EXPENSES BY TYPE:Personnel costs - 60%, ($203

million), 6% increaseServices and Supplies - 32%, ($108

million), 0% increaseDepreciation - 5%, ($18 million),

13% increaseInterest/fiscal charges - 3%,

($10 million), 0% increase

EXPENSES BY FUNCTION:Public Safety - 30%, ($103 million),

2% increaseGeneral Government - 16%,

($55 million), 8% increaseJudicial - 13%, ($44 million), 5%

increaseBusiness-type activities - 8%,

($27 million), 8% increase