BROWN COUNTY ANNUAL FINANCIAL STATEMENT For the year ended September 30, 2014THE COUNTY OF BROWN BROWNWOOD, TEXAS. Date: July 1, 2015 Honorable Stephen Ellis, District Judge, 36" Judicial District E. Ray West, County Judge Gary Worley, Commissioner, Precinct #1 Joe! Kelton, Commissioner, Precinct #2 Wayne Shaw, Commissioner, Precinct #3 Larry Traweek, Commissioner, Precinct #4 Citizens of Brown County: have prepared the accompanying balance sheets of all funds of Brown County, Texas as of September 30, 2014 and the statements of revenues, transfers, expenditures, and changes in fund balances and supporting schedules for all funds for the year then ended, The accompanying financial statements and schedules present fairly the financiel position of the various funds of Brown County on the modified accrual basis on September 30, 2014 and the results of operations of such funds for the year then ended. These statements were prepared on the GAAP basis of accounting, The accompanying Combined Balance Sheet — All Fund Types end Account Groups, as of September 30, 2014, Combined Statement of Revenues, Expenditures, and Changes in Fund Balance, for the year then ended, and Combined Statement of Revenues, Expenditures, and Changes in fund Balance — Budget (GAAP BASIS) and actual ~ All Governmental Fund Types, for the year then ended, have been repared from the books and records of Brown County, Texas. {lam not independent in regard to the financial statements enclosed. The office of County Auditor is an appointed office, paid by the county to establish intemal controls within the various departments of the county, evaluate these controls to various departments of the county, maintain the financial books and records of the county, prepare budget comparisons and financial statements of the county, and assist in preparation of the annual budget of the county. ‘The County Auditor’ office is responsible for both the accuracy of the presented data and the completeness and fairness of the presentations, including all disclosures, The data presented is accurate In all material aspects and is presented in a manner that fairly sets forth the financial position and results of operation of the County, Brown County has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Brown County financial statements in conformity with GAAP, Internel accounting controls are designed to provide reasonable, but not absolute, assurance Of the sateguarding of assets against loss from unauthorized use or disposition and reliable financialFecords for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, ‘This Comprehensive Annual Financial Report consists of three parts: 1) The Introductory Section includes a list of Principal Officials, Organizational Chart, and transmittal information that highlights significant aspects of financial operations during the year 2) The Financial Section includes Management's Discussion and Analysis ("MD&A") basic financial statements, related notes end supplemental financial data, 3) ‘The Statistical Section inciudes several schedules including individual fund balance sheets and budget analysis. ‘The notes to the financial statements are an integral part of this financial statement. We are pleased to present the following schedules and financial statements for your information. If you have questions or concerns, please feel free to contact our office at any time, Sincerely, Nina Cox Brown County AuditorBROWN COUNTY, TEXAS ANNUAL FINANCIAL REPORT ‘Year Ended September 30, 2014 ‘TABLE OF CONTENTS: INTRODUCTORY SECTION Page (s) Brown County... eeseean, 1 Brown County and District Officials, a 2 Brown County Organizational Chart September 2006... 3 FINANCIAL SECTION Profle ofthe Government and County... ses. sees Audit Certification Form...... 6 Combining Balance Sheet All Funds......ccssose 7 Statement of Revenues, Expenditures and Changes in Fund Balance All Funds, 8 Combining Balance Sheet Governmental Funds. : 9 Statement of Revenues, Expenditures and Changes in Fund Balance, Governmental ands. 10 Balance Sheet General Fund ee eee 11-28 Balance Sheet Road and Flood Funds ... Be Be 29-39 Balance Sheet Debt Services Funds. . wan He See Hee 40-41 Balance Sheet Special Revenue Funds... a ee 42131 Balance Sheet Long Term Debt Funds stesso ea Balance Sheet Internal Service Funds detects g32138 REQUIRED SUPPLEMENTARY INFORMATION Summary of Significant Accounting Policies. 139-154,INTRODUCTORY SECTIONTHE STATE OF TEXAS [ - KE | i ee Me. Hy LIBROWN COUNTY 200 S. Broadway, Brownwood, Texas COUNTY and DISTRICT OFFICIALS September 30, 2014 Primary County Officials E. Ray West, III Gary Worley Joel Kelton Wayne Shaw Larry Traweek Frank Griffin Shane Britton Bobby Grubbs Walter Croft Bob Wall Bryan Thompson Jim Cavanaugh Sharon Ferguson Christine Pentecost Ann Krpoun Nina Cox ~ Brown County Judge -- Commissioner, Precinct #1 -- Commissioner, Precinct #2 -- Commissioner, Precinct #3 -- Commissioner, Precinct #4 -- Brown County Court at Law Judge County Attorney Sheriff Justice of the Peace, Precinct #1 Justice of the Peace, Precinct #2 -- Justice of the Peace, Precinct #3 -- Justice of the Peace, Precinct #4 -- County Clerk -- Tax Assessor-Collector -- County Treasurer -- County Auditor Primary 35” District Officials Stephen Ellis Michael Murray Cheryl Jones -- 35" District Judge ++ 35" District Attorney -- 35" District ClerkBrown County Organizational ChartFinancial SectionProfile of the Government Brown County operates under a county judge/commissioners court type of government as provided for by state statute. The County receives funding from local, state and federal government sources and must comply with the requirements of these funding source entities. However, the County is not Included in any other governmental “reporting entity" as defined in Section 2100, Government Accounting and Financial Reporting Standards. of the County Brown County, located in Central Texas, is 156 miles northwest of Austin and 167 miles southwest of Dallas. Brown County covers 944 square miles. Brownwood, the County Seat, is considered @ micropolitan area. Brown County is home to Lake Brownwood. Local waterways are the Pecan Bayou and its tributaries and the Colorado River, which forms the southern boundary of the county, The average low temperature in January is 33° F; the average high in July is 96°, The growing season lasts 242 days, Rainfall averages 27.42 inches annually. The county is served by an adequate transportation system, with U.S, highways 67 and 84 crossing from east to west, and 377 and 183 from northeast to southwest. The Atchison, Topeka and Santa Fe Railroad crosses the state from the northeast to the west through Brownwood. Communities in Brown County include Early, Bangs, Blanket, Brookesmith, Cross Cut, Grosvenor, Indian Creek, May, and Zephyr. Brown County provides a full range of services to its citizens. These services include police protection, health and social services, public improvements, streets and traffic control, libraries, and recreation facilities, as well as general administrative services. Facts Concerning 2014 Governmental Fund Finances The overall General Fund Balance increased from 2013 to 2014 by $ 206,674.00 or approximately 6.5%. This increase is attributed in part to new property added to the tax rolls, excess tax payments, and higher than expected fine collections. Brown County Elected officials and department heads are credited with controlling expenses and conserving tax payer dollars to lower the overall expenditure rate. Factors Affecting Financial Condition When considering Long-term financial planning, there are several pressing issues that will have a financial impact on the County of Brown and its citizens: 1) National inflation Rate2) Indigent Defense 3) Indigent Health Care 4) Law Enforcement 5) Governmental Security 6) Capital Projects for Courthouse Expansion 7) Road Improvements Brown County aggressively pursues cost efficient methods to continue to provide the governmental resources necessary to ensure the public safety, health and welfare while maintaining current budget levels.k appropeiate box We have exceeds Brown County, Texas Fiscal Year Ended September 30, 2014 AUDIT CERTIFICATION FORM (ACE) Che $800,007 Federal /state enpendivace threshold audit eepoct itis nine (2) gonthy sites the end of the ausited or 8 Progran Fesecat a Feral Funds SoReSaTe ae THOTET Pega Name E [cro] Federal Grantor rantor FDA Number umber | | Expenstares [US Dasatinert ot nce Tosas Atterray Carers —| [ema Cosranaier and Usson Pree esa] W'S Deparment slice Tense Atorney Gonerat | |virehipones 35575 | | siescosel U.S Departront of lus Texas Emergency Mart | [Federal emergency Daten 97 036 s0.¢| lu. S.Depanmont of Homelend Secunty Giicecrine covenor | [suse orn 0.0] lu § Deparment af et Built Prcet Vest Gat 18807 30.0 JARRAVviience Agains Women Act Cttes of ne Govdrnoe | JVlenee Aginet Worhen Act 16880 so. Us. Ceperment ot Tresury Deparimant of Treasury | sate Chmin) Alan Asisarce Program 30.0 "al Fara Eanes Tor the Fiscal VERT TEER] ‘Se rans SI PasSTTOUgT ‘Contract State Grantor ‘Geantor Program Name umber | | Expenditures ia Sate ORUTUTES Tar Ts Fiscal Vk 3009] Tora Fadjal and Site Expensive Tor he Fiscal Ver RE. Nina Cox Brown County Auditor E Kay Waren E. Ray West lil sro aur udge Ys yg Date 6Brown County Combining Balance Sheet All Funds For the Year Ended September 30, 2014 Assets Cash and Cash Equivalents $ 1,398,094.46 investments - Current 4,919,450.58 Taxes Receivable 989,346.82 Receivables 41,021,624.10 ‘Amount Provided for Notes Payable 975,104.60 Refunding Bonds 2007 Payable 4,135,000.00 Tax Notes Series 2013 1,246,000.00 Due From Other Funds 238,179.54 Total Assets 14,916,800.07 Liabilities and Fund Equity Liabilities Accounts Payable s 834,722.26 Salaries Payable 6,716.47 Cafeteria Service Reserve 9,397.70 Benefits Payable 2,070.54 Notes Payable 975,104.60 Due to Other Funds 150,000.00 Deferred Ad Valorem Tax Revenue 989,346.82 Escheated Funds 596.54 Refunding Bonds 2007 4,495,000.00 Tax Notes Series 2013 41,246,000.00 Reserved for Right of Way 100,000.00 Total Liabilities $ 8,444,954.92 Fund Balances Reserved for: Debt Service s 6,369,346.82 Specific Purposes 4,969,726.81 Right of Way 100,000.00 Unreserved and Undesignated Reported in the General Funds 3,477,726.44 Beginning Balance $ 6,725,065.35 Fund Closure $ (120.48) Total Revenues $ 18,771,105.98 Total Expenses $ 47,024,208.71 2014 Fund Equity $ (253,099.72) Total Liabilities and Fund Balances = $ 14,916,800.07Brown County Statement of Revenues, Expenditures, and Changes in Fund Balance All Funds For the Year Ended September 30, 2014 Revenues: Taxes Grants and Subsidies Licenses and Permits Local Shared Revenue Fees of Office Fines Other Revenue Other Fees Transfers Total Revenues Expenditures General Administration Judicial Legal Election Financial Tax Administration Public Facilities Public Safety Health and Welfare Cultural and Recreational Conservation Debt Service Transfers Road Expenses Total Expenditures Net Changes in Fund Balances Fund Balance Beginning of Year Fund Closure End of Year $ — 12,938,968.25 522,963.06 1,286,485.54 135,923.96 1,209, 782.66 461,065.37 175,740.67 40,176.48 $__16,771,105.99 $ — 1,872,401.83 2,105,047.35 740,661.98 214,410.05 289,592.69 544,954.51 2,447,611.45 2,553,683.87 1,193,813.44 309,505.15 146,144.18 1,109,945.83 413,137.51 3,383,295.87 $_17,024,205.71 $ (253,099.72) 6,725,065.35 (120.48) 471,845.15Combining Balance Sheet Governmental Funds" Brown County For the Year Ended Governmental Funds September 30, 2014 Total Governmental General Fund Road and Bridge Funds Other Funds, Funds ASSETS ‘Cash and Cash Equivalents 5 eag0873 § 7345002 $ 13147284 § 1258811.58 Investments - Currant 3,047,385.62 1,242, 840.00 520,12495 § 4.918.480.58 Taxes Receivable 156,028.60 143,490.88 15982034 § 986,346.82 Governmental Receivables 596,524.27 251,409.08 5212197 § 900/085 30 ve from Other Funds 381,718.22 (18,846.49) (469322 § 268,178.51 Amount o be Proved for Notes Payable 975,104.60 3 976,104.80 Total Assets awe TE eee LIABILITIES AND FUND BALANCES Labitties: ‘Accounts Payable 8 51150065 § stores = §42.442.26 § 538,997.08 Wages and Salary Payable (85.70) 8 (088.79) Intergovernmental Payable 8 : Deterted Ad Valorem Tax 886,026.60 143,490.88 ts982038§ 989,306.82 Due to ornare 1506.64 150,000.00 8 150 596.54 Notes Payable 975.1040, 8 975.10460 Uneamed Revenues 8 ‘Toal Liabilties =a TORE = “Eure Ere Fund Balances Reserved For: Dett Service | 8 : Speci Purposes S 195057862 $= (20226260 § 1.552,881.22 Right of Way $ 100,000.00 8 +00,000'00 Capital Projects UUnreservec and Undesignated $ 4.197.817.00 8 1.197,817.00 Total Fune Balances 1297.17.00 $ __1,380.578.62 20026260 2,850,858.22 ‘otal Liabilities and Fund Balances TREO Fae PERE “S PLEO’ Fund Balances: S -3z710s24a § 1,12920808 © § | 2214z255e Ss 661457208 Total Revenue S 11.948;97403 $ 2187983530 «$1,800 34348 «$= HB. TaSaSG.8 5 1740,30003 § © -2.601,85089 -§ | 2438088.77 § «= 18.871,138.68 $ Barr 72848 «§ © 131697945 © S,875.58429 § 470,200.18 $775,503.46 $ __2,967.55807 _§ _1,077,96689 § 9.920,948.40, “Does not include Internal Service FundsGeneral Fund Revenues: Taxes $10,018,750.48 Grants, Subsidies and Loans $522,983.08 Licenses and Permits 72,426.19 Local Shared Revenue 135,923.08 Fees of Office 621,093.12 Fines 481,085.37 Other Revenue 74,575.39 Other Fees 40,176.48 Transfers Tax Note Fund Balance Total Revenues S$ 19,846,974.03 Expenditures, General Administration S 1,843,578.06 Judicial 2,061,938.70 Legal 595,001.41 Election 205,969.06 Financial 289,592.69 Tax Administration 544,954.51 Public Facilities 2,282,920.35 Public Safety 2,447,003.31 Environmental Health and Welfare 41,034,832.32 Cultural and Recreational 288,365.44 Conservation 146,144.18 Debt Service Transfers Road Expenses Violence Prevention ‘Total Expenditures 14,740,300.05, Net Change inFund Balances $ 206,674.00 $ Fund Balance Beginning of Year 3,271,052.44 Fund Closure End of Year —S3aTT T2644 * Does pet insude ilo See Furs Brown County Statement of Revenues, Expenditures, and Changes in Fund Balance ‘Governmental Funds* For the Year Ended ‘September 30, 2014 Road and Flood Other Funds" Funds $1,782,986.60 _$1,096,735.01 $139,998.26 1,074,081.00 584,964.54 22,819.61 78,645.67 2 2, 1 10 879,636.90 _§ _1,900,545.48 $ 28,8237 39,383.65 102,199.45 8,440.99 164,691.10 106,680.56 103,250.00 95,731.12 21,139.71 1,109,945.83 7.25361 691,850.89 691,444.98 (657,880.89 _2,438,904.77 187,685.41 $ (538,641.29) 129,294.04 2,214,346.06 (120.48) '$4,516,970.46 $1,676,584.29 Total Governmental s s Funds 12,898,441.07 (662,961.32 4,146,487.28 135,923.96 1,206,087.66 "461,085.37 178,740.87 40,176.48 76,726,863.84 4,872,401.83, 2,101,922.35 697,200.86 214,410.05 289,502.89 544,954.51 2.487,614.45 2,853,883.87 103,260.00 1,080,563.44 309,508.15 146,144.18 4,109,945.83 7,283.61 3,983,206.87 16,871,135.69, (144,281.88) 6,614,692.64 (120.48) $6,470 470.66Brown County General Fundsruprransxa (exam) e200coe ens’aau'y xer00a axaa/eazarmeyr1 wees 12aKaass wos Kosrevens9 casei47a sme uunccoe —of aanosow 182224wemazads wos xosravewo saoanevrameeiaas woz xosmevanoo aeonsonBrown County Road and Flood FundsRauTOds atna/sarermravr7 Wes asmnte wine awe08 29see eores srao8 quni/seruzneaves awa ouns r¢ soeromea —“aaNe somene Tere 3132-so-te'ese AutO0s axne/serartiaert x0 33xer0oa onad/satariersT awe 35cna 94 sosiomesarocs aund/earsiteavra a0 aesoba sna Twos 37Debt Service Fundse-a0eo9r ba sotaws casa -"saes 29m0TeS IWR umn sae 40a1Brown County Special Revenue Funds42ae g & = 2 = eo cS 3 7 2 2 2 ee 8 43secece'ss Anode auot/sarsrtrave4 avson bia eo 40 does ssteouad ao eanvozazieas anna sooronmoas aanco sorasne -“eames goweT¥a AvrEr 44asissy avis 4648495051525354samangu ove 5556waanenise oa noon 57“ystest oe suinbe aung/se1arareeT WSO srzeda ang awu0e 58wanaiaas vou noeravanos sapand 59Sumnbs oxea/satuetrever mesoE fare AaInbs anos TwL0r 60Sa dapsone iva cxoeooe on nose 61-00"09'e sarees oxns/eatricaest qes08 eseba guna aezoe ‘seancronaxa sew Siinos ate 6263sines aung/sorarteeT Wee azote 6465eens ane 6667686970 srae%0s anemaoe, "SHE inn cor -00's00"t 0 0 o» 00°50 a senesary qWi08 +e 0a sermis “araauos savantsunnbs a 7273et00s nna/sazararewe" o¥Lor Aureos cans awor Eia08 cho 415 a moe76ordpatoos aunaysarersseery a¥u08 ‘ns wozowtod vs/onea 29 - amis Samer ters 78aos xorsmed ¥5/enaa 739 7980818283sumn0e ovoa/satuitievrT aw9s Axzo0a ung a¥LOL 8485sins ouoe/sarartiee7 rao 00"526"80" sarod cnea a¥uoe 8687actnta aung/seriraeet mor atrooa axes "wor Poe ALxOoE oNns 88899091sao-e80'9 sar0b8 onna/sararTaANT TWO 2rogs away Te10L 9293oo-zur' sunnba qunu/sararaseert eon naade cnn “esa 9495niaoe ane 96979899100101pat0da oxne/sararcieurt TwOd porary) 102savers sunao8 cuaa/surererrt aes stops ane eae 104‘waqazaze var xosrevanoo saocae 105Speer seinba oans/srerarawey Wiss 106107e160 as 108109-s9-098°t Aureos uoa/sarsrazevr7 nyt salina wai Wous/on aoe 110W141sareda cung/ssrorareers ae sareos owns avon vace nz 112113Aurabs uoa/eareraseven menos 11411511617118119120121samba ans awz0e ‘OMe eine 122123124128sxinoa uns/saturirawr7 ayia jarnoa ans awe 126127ans on 128129regor'cor parooa auna/sararsseert aor saiota ams mao, 130131Brown County Long Term Debt132Brown County Internal Service Fundsjarooa auns ees 133xatnba aans/sareraraes aos axes anne aw208 ree omit snaaseu soumwas easiaa9 134sxenoe quoa/sarsrnzavr1 tesa 135005s Axrooa ouna/sarevniawey esos narede anne oesas 136137Ketnoa onns/satares@wn7 awEor niEva0e asa 138Required Supplementary informationBrown County Notes to Financial Statements September 30, 2014 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Brown County is a general law county operating under Vernon's Civil Statutes in the State of Texas, The County operates under a County Judge-Commissioners Court form of government and provides the following services: County and District records recording and retention, Veterans Administration, Vehicle Registration, County and District Judicial Systems, Sheriff Department, Jail, Fire Protection, Ambulance Service, Justices of the Peace, Indigent Health Care, 911 Emergency supervision, Agriculture Extension Service, County Road Maintenance, and various allotments to other entities for various services available to the public. The financial statements of the county have been prepared in conformity with general accepted accounting principles (GAAP) as applied to governmental units except when the application of GAAP would make the financial statements difficult to read or less meaningful. ‘The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. ‘The more significant of the govemment’s accounting policies are described below. + REPORTING ENTITY In evaluating how to define the County, for finaneial reporting purposes, the County Auditor has considered all potential component units. The decision to include a potential ‘component unit in the reporting entity was made by applying the criteria set forth in GAAP. The basic, but not the only, criterion for including a potential component unit in the reporting entity is the governing body's ability to exercise oversight responsibility. ‘The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability fo exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations and accountability for fiscal matters. The other criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the County is able to exercise oversight responsibilities, 1. Included in the reporting entity are all funds of Brown County. Escrow Type bank accounts of revenue producing Departments are included in the appropriate funds of the County as accounts receivable, 2. Excluded from the reporting entity are Adult and Juvenile Probation Funds, The funding of these services is from the State of Texas and Probation fees. These funds must be used exclusively for probation programs. Brown County has no control over the expenditure of these funds. Trust and similar funds established at judicial decree for the benefit of others were excluded because the County receives no benefit from these funds and they are not the property of the County. District Attorney State of Texas funds are excluded. 139FUND ACCOUNTING The accounts of the County are organized on the basis of funds or account groups, each considered to be a separate accounting entity. The Operations of each fund or account group are summarized by providing a separate set of self-balancing accounts which include its assets, liabilities, fund equity, revenues and expenses or expenditures. The following funds and groups of accounts are used by the County: Governmental Fund Types: 1 General Funds: These funds represent general operating funds of the county. All financial resources, except those required to be accounted for in another fund are accounted for in the General Funds. ‘The following funds are included in the account group “General Funds” of Brown County: © (010) General Fund Road and Flood Funds: These funds represent funds dedicated to expenses related to road and bridge maintenance, rehabilitation and construction. (021) Precinct #1 Fund (022) Precinct #2 Fund (023) Precinet #3 Fund (024) Precinet #4 Fund (025) Road and Flood Fund Debt Service Funds: The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long term debt. Long term debt refers to certificates of obligation and tax notes, This fund utilizes advalorem taxes for payment of principal and interest on long term debt, The following fund is included in the account group “Debt Service Funds”: * (060) Debt Service Fund Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. The following funds are included in the account group “Special Revenue Funds” of Brown County: (011) County Attomey Forfeiture Fund (012) Justice Court Technology Fund (013) Courthouse Security Fund (015) District Attorney Forfeiture Fund (017) Sheriff Department Contribution Fund (O18) Sheriff Training Fund (019) Indigent Defense Fund (020) District Attorney LEOSE Training Fund (026) County Attorney Forfeiture (030) Records Preservation Fund (031) Alternative Dispute Resolution Fund (032) District Court Reporter Service Fee Fund (033) Abandoned Vehicle Fund (034) Sheriff Forfeiture Fund (035) Equitable Forfeiture Sharing Fund 140(036) Inmate Phone Fund (038) Election Administration Fund (039) D.A. Equitable Forfeiture Sharing Fund (041) CCL Drug Court/$A Donation Fund (042) County Attomey Donation Fund (043) Pre Trial Diversion Fund (044) District Clerk Archive Fund (045) Records Archive Fee Fund (046) District Clerk’s Record Management Fund (047) State Disbursement Fund (048) Court Records Preservation Fund (049) Surveyor Fund (050) Law Library Fund (053) D.A. Professional Fund (054) Violence Against Women Fund (055) Federal Emergency Management Fund (056) County Clerk Tech Fund (057) District Clerk Tech Fund (061) Rural Addressing Fund (065) Law Enforcement Block Grant Fund (066) SCAAP Fund (082) Voter Registration Fund (084) Tax Assessor Collector Penalty and Interest Fund (086) Court Initiated Guardianship Fund (088) Court of Appeals Fund (096) District Clerk Records Management Fund (097) Vital Records Preservation Fund (098) Records Management Fund Capital Projects Funds: The Capital Projects Fund is used to account for major capital expenditures requiring a period of time to complete. The sources of revenue are transfers from other funds and sale of Certificates of Obligation or tax notes incurred for capital improvements. The following funds are included in the account group “Capital Projects Funds”: # (062) Capital Projects Fund General Long Term Debt Fund: The General Long Term Debt Fund is used to account for long term liabilities to be financed from governmental funds. The following funds are included in the account group “Long Term Debt Funds”: + (063) Long Term Debt Fund Intemal Service Funds: The Internal Service Funds are used to account for clearing house transactions © (040) Jury Fund (087) Conduit Fund (088) Court of Appeals Fund (085) Payroll Fund (090) Brown County Medical FSA Fund 141+ (099) Operations Clearing Fund * BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (ie., expenditures and other financing uses) in net current assets ‘The modified accrual basis of accounting is used by all govemmental fund types, Under the modified accrual basis of accounting, revenues are recognized when susceptible to acerual (ie., when they become both measurable and available), “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The County considers property taxes as available if they are collected within the fiscal year. All other revenues collected within the fiscal year by revenue producing departments are considered available, even though the amounts may not be forwarded to the County Treasurer before the end of the fiscal year. Expenditures are recorded when the related fund liability is incurred, Principal and interest on general long term debt are recorded as fund liabilities, ‘Those revenues susceptible to accrual are service fees, fines, and other revenue collected by departments during the fiscal year but not reported to or paid to the County Treasurer until the following year. ‘The county reports deferred revenue on its combined balance sheet. Deferred revenues arise when potential revenue does not meet both the measurable and available criteria for recognition in the current year. + BUDGETS AND BUDGETARY ACCOUNTING The Commissioners Court adopts an annual budget for all Governmental Fund Types. The annual budget is prepared in accordance with the basis of accounting utilized by all funds. During the year, the Commissioners Court may adopt amendments to the original adopted budget as needed. ‘Ail annual budget appropriations lapse at fiscal year end, * ENCUMBRANCES ‘The County does not encumber expenditures. + CASH AND INVESTMENTS. 142‘The county maintains cash applicable to each fund within the respective fund. Investments consist solely in Certificates of Deposit in Texas Bank of Brownwood, Brown County’s depository bank. ‘The investments are maintained in an investment pool that is available for use by all funds. Each fund type's portion of this pool is reflected in the balance sheet of each fund. Except for Certificates of Obligation and tax note related transactions, the County conducts all its banking transaetions with the depository bank. 1. At September 30, 2014, the carrying amount of the County's Certificates of Deposit was $ 4,919,450.58. 2. At September 30, 2014, the carrying amount of checking accounts was $ 1,474,343.12. Total Cash balances are secured by FDIC coverage and additional securities pledged by the depository bank. The County records all interest revenues earned from investment activities in the respective funds. Investments are stated at cost and all investment activities are conducted through the depository bank. INVENTORIES ‘The County records no inventories. COMPENSATED ABSENCES The County allows employees to accumulate vacation time not to exceed 20 days to the succeeding year, Vacation time in excess of 20 days is forfeited by the employee. Unused vacation time is compensated only if an employee voluntarily terminates employment with eamed vacation time. The County allows employees to accumulate sick time not to exceed 20 days. Unused sick time will not be paid to the employee at any time, No compensated absences are accrued on the books of the County because of the uncertainty that such liability would exist in the future. PROPERTY TAX Property taxes attach as an enforceable lien on property as of January 1, Taxes are levied ‘on October | and are payable on or before January 31 of the following year, All unpaid taxes become delinquent February | of the following year. The County contracts with the Brown County Appraisal District to collect its property taxes. County property tax revenues are recognized when collected. Uncollected property taxes are recognized as deferred ad valorem tax revenue. PROPERTY, PLANT, AND EQUIPMENT Fixed assets used in governmental fund type operations are accounted for in General Fixed Assets Group of Accounts, rather than in governmental funds. 143NOTES PAYABLE, CERTIFICATES OF OBLIGATION AND TAX NOT! No interest expense for any capital project construct INTERFUND RECEIVABLES/PAY ABLES The County does not allocate revenues and expenditures between funds. All revenues and expenditures are recorded in the appropriate fund, The interfund receivables are the result of minor adjustments to record revenue or expenditures within the appropriate fund and to provide cash to funds when a temporary shortage occurs. Brown County funds certain capital purchases through conventional notes payable, certificates of obligation, and tax notes. All outstanding obligations are backed by the full faith and credit of the County. © Note Payables are utilized to fund smaller projects within Brown County. Each fund reflects the amount required to retire the net principal and interest due for that fiscal year, with the total amount of the debt reflected on the balance sheet. Principal and interest payments are secured by revenue acquired though sources other than advalorem taxes. © Certificates of Obligation are utilized to fund major projects within Brown County. C.0.s are utilized to fund capital expenditures necessitating long term (over 7 years) debt structuring, Payment is guaranteed by the collection of advalorem taxes. On November 1, 1999, the County issued Certificates of Obligation, Series 1999 in the amount of $9,500,000. The certificates were used to fund the building of the Brown County Law Enforcement Center. On November 1, 2007, the County refinanced the C.O, Series 1999 and created C.O. series 2007 in the amount of $7,020,000. ‘Tax Notes are utilized to fund major projects within Brown County. Tax Notes ate generally used to fund debt requiring short term (under 7 years) structuring, © The County is current on all payments of principal and interest. ° CAPITALIZED INTEREST mn has been capitalized, LONG TERM DEBT SCHEDULES 144TAX SUPPORTED DEBT REQUIREMENTS Year eof Ended Ouistanding Debi Service Principal 9130 Prineipal Titer Ta 2010 505,000 275,600 780.600 2011 530.000 235,400 788400 7 2012 330,000 234,200 784,200 2013 375,000 212,200 787.200 2014 395,000 189,200 784.200 2015 625,000 165,400 790,400 2016 645.000 140,400 735400" 2017 675,000 114.600 789,600 2018 708,000 87.600 792,600 2019 730,000 59,400 789.400 2020 755.000 30,200 785.20 100,00%. $6,890,000 $1,764,200 __$ 634,300 BOND DEBT SERVICE Brown County, Texas Tax Note, Series 2013 Annual Debt Service 325,745.83, 322,822.50, 325,230.00, 321,355.00, Period Ending Principal Coupon Interest Debt Service 03/01/2014 10,995.83 10,995.83, 03/01/2014 305,000 0.550% 9,750.00 314,750.00 09/30/2014 03/01/2015 ag125 8.91125 09/01/2015 305,000 (0.850% gei.2s — 313.91125, (03/30/2018, 03/01/2016 7,615.00 7,615.00 (08/01/2016 310,000 1.250% 7615.00 317,615.00 (09/30/2036 03/01/2017 5,677.50 5,677.50 09/01/2017 310000 1.650% 5,677.50 345,677.50 (09/30/2017 03/03/2018, 3,420.00 3,120.00 (09/01/2018 320,000 1.950% 3,120.00 323,120.00 09/30/2018 326,240.00 41,350,000 71,393.33 145 1,621,393.33 3,621,393.33OTHER OBLIGATIONS Dept Pett Pet t Pot 2 Pot 3 Pet 3 Peta Peta Description Issue Date Issue Amt Rate Installment Maturity 9/30/2014 Trailers 6/19/2013 61,999.10 2.11% Monthly 5/24/2015 40,904.64 ‘Tractor!Shredder 5/24/2011 60.076.90 3.25% © Monthly 11/24/2014 2,369.11 Mack Trucks ete. 5/24/2011 198,800.06 3.25% Monthly 5/1/2017 185,144.28, Motor Graders 11182013 454,887.12 211% Monthly 6/24/2018 412,672.12 Diesel Truck 4/3/2012 32,500.00 2.11% Monthly —-—§/24/2018 4,529.59 Motor Grader 7129/2013 247,000.00 2.41% Monthly “5/24/2015 182,368.72 Motor Grader 10112012 214,028.06 3.2% Yearly 71302017 177,117.61 ©THE COUNTY HAD NO AUTHORIZED BUT UNISSUED DEBT AT 09/30/2014 © OTHER INFORMATION Risk Management: The County is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets: business interruption; errors and omissions; injuries to employees: employee health benefits: and other claims of various nature. The County participates in the Texas Association of Counties intergovernmental Risk Pool which provides protection for risks of loss. Premiums are paid to the Pool which retains the risk of loss beyond the County's policy deductibles. Any losses reported but unsettled or incurred and not reported, are believed to be insignificant to the County’s basic financial statements. For the last several years, there have been no significant reductions of insurance coverage or insurance settlements in excess of insurance coverage. Contingent Liabilities and commitments: Amounts received or receivable from grantor agencies are subject to audit and adjustment by such agencies. Any disallowed claims, including amounts already collected may constitute a liability of the applicable funds. The amounts, if any, of expenditures which may be disallowed by the grantor mnot be determined at this time although the County expects such amounts, if any, to be immaterial. 146The County periodically is defendant in various lawsuits. As of September 30, 2014, after consultation with the County’s Attorney, the county is not aware of any pending or threatened litigation which would have a material effect on the financial statements, ‘The District Clerk has invested trust funds at various financial institutions in accordance with court orders. The County has a fiduciary responsibility over these funds until their final disposition. Employee Retirement Systems and Pension Plans 1, Plan Description The County provides retirement, disability and death benefits for all ofits full time employees through a nontraditional defined benefit plan in the state-wide ‘Texas County and District Retirement System (TCDRS). The Board of Trustees of TCDRS is responsible for the administration of the statewide egent multi- employer public employee retirement system consisting of 575 nontraditional defined benefit pension plans. TCDRS issues a comprehensive annual financial report (CAFR) on a calendar year basis. The CAER is available upon written request from the TCDRS Board of Trustees at P. O. Box 2034, Austin, Texas 78768. 2. Funding Poliey ‘The County has elected the annually determined contribution rate (variable rate) plan provisions of the TCDRS ACT. The plan if funded by monthly contributions from both employee members and the employer based on the covered payroll of employce members, Under the TCDRS Act, the contribution rate of the employer is actuarially determined annually as follows: Plan Year 2012 6.91% Plan Year 2013 7.48% Plan Year 2014 7.28% The contribution rate payable by the employee members is the rate 5% as adopted annually by the commissioner’s court with the options available in the TCDRS Act. Concentrations of Credit Risk Taxes receivables are due from citizens and businesses within the County's boundaries. Risk of loss is immaterial due to wide dispersion of receivables and because of policies which address procedures for filing property tax liens. Fines receivable are due from citizens primarily within the County's boundaries. Risk of loss js immaterial due to wide dispersion of receivables and the estimated allowance for uncollectible. 147CONTINUING DISCLOSURE REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014 BROWN COUNTY, TEXAS GENERAL OBLIGATION DEBT FirstSouthwest 148BROWN County, TEXAS. 2015 GENERAL OBLIGATION DEBT REPORT ‘TABLE I ~ VALUATION, EXEMPTIONS AND GENERAL OBLIGATION Des 2014/15 Total Appraised Value Established by Brown County Apprsisal Dstt Less Exemptions/Reductions at 100% Market Valve ‘Residential Homestead Exemptions (Over 65 ot Disabled) 3 34011372 Disabled Veterans 13,741,127 Pollution Control Exemptions 8.895.930 Prodietivity Loss 54,052,302 ‘Tax Abatement Reductions 8,151,789 Homestead Cap Adjustment 63,029,762 2014/15 Net Taxable Assessed Valuation ‘General Obligation Debt Payable from Ad Valorem Taxes (as of 1/31/18) Generel Obligation Ineres and Sinking Fund (as of 31/18) Ratio General Obigation Tax Debt to Taxable Assessed Valuation 2015 Estimated Population - 38,910 Per Copita Tanable Assessed Valuation - $61,430 Per Capita General Obligation Funded Debt - $138 149 83672, 120,648 $1.281,882.652 $ 2390.237.996 S 5,380,000 Ss saso2t 023%‘Tam. 2 TAxani LE ASSESSED VALUATION BY CATEGORY “Tmable Appraise Value fr ax Year Ended September 30, mae 2014 Bais or Roser ga ale Category Amount oral Amount Toul Amount ‘ota Real Rendon, Single Pam SLOT ss arse “Twi ie —assR Tasso ea Real, Resident, Muli-Family 32225490 “oas% ——30.845030 0.90% 32275600 095% Real, Vacant Loeracte 59,062252 145% = sagongon 1.48% 52032431 135% Real, Acreage (Land Only) 1217374669 33.19% 1216974282 38.48% ——1.235,TTDGGL 36.7806 Real, Farm and Ranch iproveinens 266083450 9.97% —“HHo217365 904% = DR 941.749 BION Real, Commercial and ndusiriat 341,026,786 9.28% «35585269 8am © 32L.g92080 9 54% Real, Oil, Gas and Other Mineral Reserves, 20806300 057% = 18208716 0.83% 9061776 057% Real snd Tengibie Persona, Ulities 145,654,250 3.97% 134.184620 3.91% = 21.938890 3.43% Tangible Personal, Business $51,213,650 12.20% 422037670 1230% 391.682.0380 LL63M% Tangible Personal, Mobile Homes end Other 8900.10 028% 9506910 028% 9.778680 02% Special inventory 8.018.660 0.229% 7682810 022% se20810 020% Real Property, Inventory 16,061,320 __ 0.48% 90, _ O19 5.87650 0.20% “Total Appraised Value Before Exemptions 3672, 120.648 “Toons F~3ar0.0%s.s7 “Too F—ss61.601098 “oa Less: Total Exemptions’Redutions Taxable Assessed Value cae Rea Resse, Single-Family Real, Residential, Mult-Family Real, Vacan LowTracs Real, Acreage (Land Only) Real Farm and Ranch Inprovenens Real, Corimereial and Industrie Real, Oi, Gas and Other Mineral Reserves Real and imangibe Personal, Luis Tangible Persona, Business Tangible Personal, Mobile Homes and Oxher ‘Special lnventory Real Proper, Inventory Total Appraised Value Before Exemptions Less: Tol Exemptions/Reductons Taxable Asseseed Value NOTE: Valuations shown are cenitied taxa .281.882.552) 2590357998 E20 Taxable An 2012 Amount Swe 39,031,350) 55763,361 1,238,666,360 167,448,402 322,329,460 20921.417 109,083,670 387,863,030 4.794050 5.297.110 6,578,250 326,092,055 (1223,679,833) RUDRIE Tbs ¥ 1316,781,624 Tanase ed Value for Tax Vear Ended Suptember 30, wor Tora ers Lt 1.60% se 200% seo ones Sib Nei caste ome 820% To.D%E our Amount T8559, 138,589,000, 35652,101 1.241 345,030 259,883,305, 312499.730, 19,402,261, 1003879910 370.391,970 15222,780 5.740.120 3318320 STH sess 1 238.268512) pare or foal, Ba 118% 1396 are. 799% 954% 039% 308% 113006 see, 0.18% 028 00.00% 1,320,36375) Tamim ble assessed values reported by the Brown County Appraisel District the State Compttoller of Public Accounts, Cenified values are subject to change throughout the year as contested values are resolved end the Appraisal District updistesreconds 150‘TABLE 3 ~ VALUATION AND GeNERAL OBLIGATION DEBT History Go. Ratio of Taxable Tax Debt GO.Tax Debt G0, Tax ‘Taxable Assessed Outstanding to Taxable Debt Estimated ‘Assessed Valuation at End Assessed Per Population __Valuation” Per Capita of Your Valuation Capita BRI “FRONDS “$53,439 “S 5855,000 029% S155 38,150 2102412222 $5,109, 5,305,000, 0.25% 139 38,200 2.141.297.423$6,055 6,280,000 0.29% 16a 38,904 2213252948 36,890 5,380,000 0.24% 138 21s 3.910 239023799 61.430 4430,000 0.19% 1g (Source: County Officials. (As reported by the Brown County Appraisal District on County's Annual State Property Tax Board Reports; subject to change in the ensuing year © Prajested, TABLE 4~ TAN RATE, LEVY AND COLLECTION History Fiscal Inerest Year and Ended Tax Sioking Current 96 Totat 9130 _Rate'” Operations _ Fund TaxLew"”) Collections Collections Roll “$ 08169 “S$ 0.4023 “F O.03T1 “S 10,555,008 98.2596 10284% 201205169 0.4030 0364 ——10,867.369) 98.18% 101.639%, 2013 0535004239 oad? a. ass.948 98.17% 01.46% 201d 05744 atts gag 12,364,987 11.08% 103.189 21S stad 0.8476) godgT 13,338,378 39.26% 60.12% Tx Rates, Levies and Collection ere Mandeted homestead exemption (See Collections as of January 31,2015, ges jncluse the Farm-to-MarketFlood Control Tax which is subject toa State- able §~ Tax Rate Distribution Analysis) ‘TABLE S~TAX RATE DISTRIBUTION ANALYSIS ‘Tax Year Constitutional Tax Rare" 205 20r4 2013 2012 20 General Fund Tax Rate § 044760 “FOsssIO “SF oars90 “S040 “SOAS Interest and Sinking Pund o.o470 _0.04920 __ 003470 __0.03640 __ 0.03710 Texas Consttusonal Tax $0.49430 “S049430 “F oassen “So.4390 “FS o.43940 arn-to-tatketVPlood Contral Tax Rate 0.0801 0.0801 0.0768 oars ons Total Tax Rate S 05s “Sosme “305350 “FS osie “S asi () Tax Year begins on October I* and ends the following September 30 Limited to $0.80 por $100 assessed valuation. Certificates of Obligation ace limited ax cbligations payabte from the Constitutional Tax Rate, Limited to $0.30 per $100 Assessed Valuation‘TABLE 6~TEN LARGEST TAXPAYERS 2olaiis Sof Total Texable Taxable Nature of Assessed Assessed Name of Taxpayer Property Valuation Valuation Mimesora Mining (30 ‘Maniacturing 334087 558% Oncor Pletrie Delivery Co, Electrie Utility LORI 2.81% Superior sex Commmnications ‘Technology | 41,688,170 114% Kohler Co, Mesufacturing 32,752,360 137% (Chevton Phillips Chemical Co LP Gas and Oil 27,236,210 1%, BNSF Railway Co. Reilroad 26,830,790 112% ‘Wal-Mart Store East Ine. #813 Retail 18433150 0.77% DFC Texas Land LLC Golf Course 15233400 0.64% Minnesota Mining (3M) Manufactaring 14,030,810 0.608% Kohler Co Manufacturing 14,090,740 __ 0.59% TABLE 7 TAX ADEQUACY 2015 Principal and Interest Requirements S 1,113,223 30.04851 Tax Rate at 96% Collection Procedures 5 124819 ‘Average Annual Principal and Jnerest Requirements, 2015-2020 Ss 1,008,708 0.04379 Tax Rate a 96% Collection Procedures Ss 1o1s.i74 Maxinum Principal and Intorest Requirements, 2018 5 iss40 0.08876 Tax Rate at 96% Coliction Produces $130.95 182‘TADLE 9 ~TaX SUPPORTED Dent REQUIREMENTS Fiseal Year Ended Outstanding Debt Servioe 9130 Principal Interest, Tou Bois “ST S3000" “FE is8ads Fas 2016 985,000 Is5680 L030. 2017 985.000 125955 tings 2018 1,025,000 93,8401 118,840 2019 "730,000 59,400 789400 68.68% 2029 755,000, 30,200 788,200 100.00% SFsw0.000 “SSDs “Sage ‘TABLE 10— INTEREST AND SINKING FUND BUDGET PROJECTION Tex Supported Debt Service Requirements, Fiscal Year Ending 9130/15 5 1tn3.223 Ingerest and Sinking Fund Balance, Fseal Yeee Ending 9/30/14 S 6846 Calculated Ad Valorem Tay Receipts 1.323.087 Estimated Balance, Fises! Year Ending 9/30/15 9.865 Unaudited ‘TABLE 11 = AUTHORIZED BUT UNISSUED BONDS sof lemuary 31,2015, the County has no authorized but unissued bonds. ‘TABLE 12-OrHER OBLIGATIONS Balance Dept Description Josue Date __ssve Amount _Rate__tnstallnent__Matwriy__9/30/2014 Par Tales shoals “Fhge0.10 ‘Monthly Saano1s “5 a0.90457 Pet “ractoriSroser s24n011 9076.99 Monthly 1142014 2.36911 Pa2 Mace Tasks es S201 195,800.08 Montly sii0¥7 135118428 Pat3 Moroe Graders Haars Messi sranais 413972 12 Pa3 Diesel Truck sno12 Monthy S?24n035, 52959, Pua ‘Motor Grier m9n013 247,000.09 Monty 52472015, 182,365.72 Pa Motor Greer ron nora 211,028.05 Montly 77802017 Urine) 153‘TABLE 13 ~ GENERAL. FUND REVENUES AND EXPENDITURES Subsidies and Loans Licenses & Penni Local Shared Revere Fees of Office Fines Other Revenue Other Fees Total Revenues Expenditures General Adan 2usicial Legat Election inaneist Ta Administration Publie Fac Public Safety Environmental Health and Welfare Culture & Recreational Conservation Road Exponses “Total Expenditures Excess Revenue Over (Under) Expenditures Beginning Fund Balance Ending Fond Balance x a 511,801,706 522,963, 1146487 135,924 621.093 461,065, 97,095 40176 3 Tews 510 5 1883,s78 2,081,939, 595,001 205,969 239,593 544.955 2.282.920, 2/447.003 034,832, 288,365 146,144 2.692.108 Fiaaanaon Ss _ 394,106 S_ 4,800,346 5S 4794453 Ee Fiscal Year Ended September 30, 205 5 10,898,383 894082 1,052,221 167.986 615.938 537,900 114491 48,834, STAH29.836, $1,385,303 2.015.587 595,274 175,416 285,545, 490.727 2,208,268 2321,506 Hoar 361 304,905, 143,096 3,207,586 S571, S__ (01934) S_ £402,281 S_4100,346 2012 10301128 “5.048 1979980 10846 sig sri9e7 inane ST .806 S 1353488 1 992,378, 373,606 200016, 308.356 295538 2.221.931 25181268 32233 288,335, 139433 3,022,795 ass sassy Sanne $_suo.281 207 '$ 10,109,303 ‘saqor4 996,897 231,478 657,078 585,547 184.919 33,391 ise Tae 5 1,163,406 1.960.183, 616,069, 163,392 284,501 an3984 2,148,005 241,932 905,508 235,069 121,566 2,806,135, Sha S__c14.489 Sarat S_4707992 A 2010 $9,862,674 760,754 9913893, 2705559 682,394 569,651 103,282 56,838 Siaiee.uis S 1,952,676 11935,385 508,867 154.336 260,524 41255 2,117,282 1391.93 703,899 299,204 132.169 2.332.016 sins S_ 665,079 S_4.056,398 S427 ("The General Pund isthe primary operating fond ofthe County included in the General Fund are general operating funds and Roed and Bridge Funds © Unaudited Tas b 14 CURRENT INVESTMENTS. ‘As of January 31, 2015, the County's investable funds were invested inthe following categories: Centifieates of Deposit 154 S 6,980,577