HomeMy WebLinkAboutCounty of Solano - Public Financial ReportSolano CountyPopular Annual Financial Report
Fiscal Year Ended June 30, 2021
Office of the Auditor-Controller
Solano County, California
(707) 784-6280 | @CountyOfSolano
SolanoCounty.com/Depts/Auditor
TO THE CITIZENS OF SOLANO COUNTY:
it is my pleasure to present to you Solano County’s Popular Annual Financial Report
(PAFR). The PAFR, also referred to as the “Citizen’s Report”, is intended to provide
our citizens with an easy-to-read explanation of the County’s finances. The PAFR
provides an overview of the County’s financial condition for the fiscal year ended
June 30, 2021 (FY2020/21), and a brief analysis of where the County’s revenues are
derived and where those dollars are spent.
The Auditor-Controller’s Office is dedicated to promoting transparency and
fiscal accountability within local government. This Citizen’s Report serves an
important function in that mission by providing our taxpayers and stakeholders
with access to County financial information.
I am happy to announce that our first-ever PAFR issued last year for the
FY2019/20 was awarded the Government Finance Officers Association’s award
for Outstanding Achievement in Popular Annual Financial Reporting. This
prestigious national award recognizes conformance to the highest standards for
the preparation of state and local government popular reports. We believe this
PAFR continues to achieve the high standards of popular reporting.
A special thank you goes out to Jennifer Laron, Senior Accountant-Auditor, and
Matthew A. Davis, Senior Management Analyst and Public Communications
Officer, for their assistance in preparing this PAFR. I must also thank my
entire department and the dedicated County fiscal staff whose ongoing work
throughout the year and assistance to the Auditor-Controller’s Office helped us
achieve another Certificate of Excellence in Financial Reporting for the County’s
Annual Comprehensive Financial Report.
I hope you enjoy reading the County’s PAFR. If you have comments, questions, or
suggestions please reach out to my office, AuditorController@SolanoCounty.com
and (707) 784-6280.
Message from the Solano County Auditor-Controller
Phyllis S. Taynton, CPA
Table of Contents
1.2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Message from the Auditor-Controller
Purpose of the PAFR
Solano County Profile
Government Profile
Solano County Statistics
Statement of Net Position
Statement of Activities
Where the Money Comes From
Where the Money Goes
Where the Property Tax Dollar Goes
Solano County Highlights
12.Connect with Us
Phyllis S. Taynton, CPA
The Purpose
What is a Popular Annual Financial Report?
FINANCIALHIGHLIGHTS
FY2020/21 saw a continuation
of the COVID-19 Pandemic
and significant funding from
the Federal government for
COVID-related programs, such
as mass vaccination clinics,
testing centers, and rental
assistance.
The County’s Net Position
for governmental activities
at June 30, 2021, was $461.2
million; an increase of $65.0
million, or 16.4%, over the
prior year.
Revenues of governmental
activities increased by
a net $116.6 million, or
16.6%, primarily due to
COVID-19 pandemic funding
(Coronavirus Relief Funds,
Federal and State health
services grants, etc.), Public
Safety Proposition 172
revenues, Mental Health
Services Act revenues, and
increases in property tax
revenues.
Expenses of governmental
activities increased by a
net $20.2 million, or 2.8%,
over the prior year due to
$55.4 million total increases
in employee services,
professional services, client
support and direct services
such as emergency rental
assistance. The increases
were offset by a decrease in
pension expense of $35.2
million based on the GASB 68
Accounting Valuation of the
pension plans.
Page 2
THROUGHOUT the year the County produces several documents which
provide insight into the County’s finances and operations. The County
produces an Annual Budget document that provides a road map of how
the County plans to fund operations, various programs, and services for
an upcoming fiscal year. The County’s Comprehensive Annual Financial
Report (CAFR) provides the actual results of County operations for the
fiscal year in lengthy and complex detail; and the County produces
an Annual Report to its citizens of the services delivered on a calendar
year basis.
This PAFR focuses on the financial results of the County in an easy-to-read
format. It reports on the actual revenues and expenses for the fiscal year.
The source of the data is the CAFR for the fiscal year ended June 30, 2021.
The County’s CAFR and the financial statement data in this Citizen’s
Report are prepared in conformance with Generally Accepted Accounting
Principles (GAAP), applicable to governmental entities. The financial
data in this Citizen’s Report includes the governmental activities of the
County but does not include the business-type activities or component
units. Some statistics are taken from various sources and are not GAAP-
based data. The CAFR is prepared by the Auditor-Controller’s Office and
audited by an independent accounting firm, Eide Bailly, LLP, receiving an
unmodified (clean) opinion.
The Citizen’s Report is intended to complement the CAFR, not to be
a substitute for it. If you would like to read our CAFR, please visit
solanocounty.com/depts/auditor or scan the QR code.
Phyllis S. Taynton, CPA
SOLANO COUNTY was incorporated in 1850 as one of the original
27 counties of California. The County derives its name indirectly from
the Franciscan missionary, Father Francisco Solano, whose name
Solano was given in baptism to Sam Yeto, chief of one of the Indian
tribes of the region. General Mariano Guadalupe Vallejo requested
the County be named for Chief Solano, who ruled over most of the
land and tribes between Petaluma Creek and the Sacramento River.
Originally twelve townships were created in the County, but ultimately,
seven cities were incorporated: Benicia (1850 and 1851), Vallejo
(1868), Suisun City (1868), Dixon (1878), Vacaville (1892), Rio Vista
(1893), and Fairfield (1903). Most of the citizens reside in the seven
cities with only 4% residing in the unincorporated areas of the County.
GEOGRAPHY
Solano County is spread over a total of 909 square miles, including
675 miles of rural and farm lands, 150 square miles of urban land, and
84 square miles of delta and waterfront. Located 45 miles northeast
of San Francisco and 45 miles southwest of Sacramento, the
County borders Napa, Yolo, Sacramento, and Contra Costa counties.
SOLANO COUNTY PROFILE
Chief Solano
Credit: Vacaville
Heritage Council Health and Social Services
Veterans Services
Page 3
GOVERNMENT PROFILE
THE COUNTY operates under a general law form of government, which
means that the County’s policymaking and legislative authority is vested
in the County Board of Supervisors (Board).
Some of the Board’s responsibilities include adopting the annual operating
budget, adopting local ordinances, setting policies, setting the tax rates
and County fee schedules, and assisting citizens in solving problems.
The five-member Board is elected by district to a four-year term.
The Board appoints the County Administrator and County Counsel.
The County Administrator assists the Board in managing, directing, and
coordinating the operations of all County departments.
The County employed 3,141 full-time equivalent employees during
FY2020/21 in order to provide a full range of services to its residents.
ERIN HANNIGANDistrict 1 Supervisor
MONICA BROWNDistrict 2 Supervisor
JIM SPERINGDistrict 3 Supervisor
JOHN M. VASQUEZDistrict 4 Supervisor
MITCH MASHBURNDistrict 5 Supervisor
General Governmentand Support Services Public Protection
Assessor-Recorder*
Auditor-Controller*
Board of Supervisors*
County Administrator
County Counsel
General Services
Human Resources
Information Technology
Treasurer-Tax Collector-County Clerk*
Child Support Services
District Attorney*
Probation
Public Defender
Alternate Public Defender
Sheriff-Coroner*
Health andPublic Assistance
Health and Social Services
Veterans Services
Land Use, Agricultureand Transportation
Agriculture, Weights/Measures
Resource Management
Education
Library
UC Cooperative
Extension
The County provides services to its citizens through the followingdepartments, organized by function:
* represents elected officials
Page 4
SOLANO COUNTY STATISTICS
SOLANO County’s strategic location, affordable housing, natural and
human resources makes it an ideal place to live, learn, work and play.
Page 5
AT A GLANCE
438,527 TOTAL
POPULATION
Population per
Square Mile:530
0 10038.1
MEDIAN AGE
24.8%
people under
age 19
18.1%
people older
than 65
57.1%
people age
20 to 64
88.4%
28.9%High School Graduate
Bachelor’s Degree
or higher
Top 5 Employers
Travis Air
Force Base
Kaiser Foundation
Hospitals
Fairfield-Suisun
Unified School
District
County of Solano
Vallejo Unified
School District
$549K
Median
Property
Value
$86,652
Median
Household
Income
TOP 6industries
25%22%17%14%12%10%
Retail, trade, transpor-
tation and utilities
Construction, mining
and manufacturing
Education and
health services
All government
Leisure, hospitality
and other
Business, finance
and information
POPULARCROPS
Tomatoes
WalnutsAlfalfa - Hay
Wheat Grapes
STATEMENT OF NET POSITION
Page 6
Kaiser Foundation
Hospitals
County of Solano * Accounting change implemented in 2018
OPEB, Other Postemployment Benefits
COMPONENTS OF THE COUNTY’S NET POSITION
Net Investment in capital
assets – capital assets less
accumulated depreciation less the
debt associated with those assets.
Restricted Funds – funds subject
to external regulations and other
restrictions.
Unrestricted Funds – funds that
can be used for any purpose.
At June 30 2021 2020 2019 2018 2017
Current and other assets $735,145,625 $573,275,602 $549,443,905 $502,738,141 $466,641,827
Capital assets 552,597,524 555,026,101 556,102,859 558,706,180 558,288,829
Total assets 1,287,743,149 1,128,301,703 1,105,546,764 1,061,444,321 1,024,930,656
Deferred loss on refunding 1,520,672 1,672,739 1,824,806 2,433,433 1,417,652
Deferred outflows related to pension 103,567,359 95,660,970 113,643,047 149,511,864 110,688,273
Deferred outflows related to OPEB* 6,550,960 5,927,650 5,705,850 5,538,350 -
Total deferred outflows of resources 111,638,991 103,261,359 121,173,703 157,483,647 112,105,925
Other liabilities 180,402,463 95,586,887 82,540,191 722,082,785 651,607,849
Long-term obligations 750,875,510 719,364,265 696,992,545 75,857,890 77,454,569
Total liabilities 931,277,973 814,951,152 779,532,736 797,940,675 729,062,418
Deferred gain on refunding - - - 15,521 31,044
Deferred inflows related to pension 4,160,789 16,606,569 18,778,310 18,765,037 17,413,969
Deferred inflows related to OPEB* 2,701,965 4,005,607 1,001,947 1,084,784 -
Total deferred inflows of resources 6,862,754 20,612,176 19,780,257 19,865,342 17,445,013
Net investment in capital assets 484,977,193 481,312,570 477,673,000 473,434,362 465,703,178
Restricted net position 298,371,161 250,489,348 254,067,156 243,952,893 212,643,958
Unrestricted net position (322,106,941) (335,802,184) (304,332,682) (316,265,304) (287,817,986)
Total net position $461,241,413 $395,999,734 $427,407,474 $401,121,951 $390,529,150
Analysis of Change in Net Position:
The County’s Net Position of Governmental Activities increased $65.0 million. The most significant changes in the
County’s net position are due to an increase of $47.9 million in Restricted Net Position and a decrease in the deficit
unrestricted net position of $13.7 million. The County’s restricted net position increased due to increases in restricted
program funding for health services, public safety, library services, capital projects, and public facilities. These funds
must be spent for the restricted purposes. The deficit unrestricted net position improved due to net increases in general
revenues and program-specific funding. The County’s net investment in capital assets did not significantly increase (less
than 1% or $3.6 million).
THE STATEMENT of Net Position presents the County’s financial position from
a long-term perspective. It presents all of the County’s assets (what the
County owns) and deferred outflows of resources, liabilities (what the
County owes) and deferred inflows of resources, with the difference reported
as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the County’s financial position is improving or
deteriorating.
The information below presents only the County’s Governmental Activities
– which are those functions that are primarily supported by taxes and
intergovernmental revenues, as compared to the County’s only business-type
activity, the Nut Tree Airport, which operates similar to a business and recovers
its cost through user charges and fees.
STATEMENT OF ACTIVITIES
Page 7
WHAT DOES THE STATEMENT
OF ACTIVITIES TELL ME? The
Statement of Activities reports
the County’s revenues and
expenses during the fiscal year,
which increases or decreases the
County’s net position. Revenues
are classified by source and
expenses are classified by function.
The Statement of Activities below
presents only the Governmental
Activities of the County.
Funding for County Services - FY2020/21
FY 2020/21 FY 2019/20 FY 2018/19 FY 2017/18 FY 2016/17
REVENUES
Program revenues $580,034,479 $480,495,644 $490,750,106 $490,235,116 $460,169,445
General revenues* 238,947,328 221,883,493 219,101,490 205,464,743 189,789,397
Total Revenues $818,981,807 $702,379,137 $709,851,596 $695,699,859 $649,958,842
Function/Program Total
Expenses
Charges for
Services
Operating
Grants
Capital
Grants
Other (Primarily
Property Taxes)
General Government $84,019,126 $36,875,789 $4,662,138 $649,709 $41,831,490
Public Protection 251,384,379 26,874,939 113,447,199 - 111,062,241
Health Services 186,606,805 19,993,582 169,460,088 - (2,846,865)
Public Assistance 183,131,786 618,561 173,980,580 - 8,532,645
Education and Recreation 21,394,961 5,820,615 7,134,583 - 8,439,763
Public Ways and Facilities 23,540,793 1,830,557 18,213,305 472,834 3,024,097
Interest on Long-Term Debt 3,901,678 - - - 3,901,678
Total $753,979,528 $92,014,043 $486,897,893 $1,122,543 $173,945,049
* Includes Transfers
EXPENSES
General government $84,019,126 $77,400,983 $79,056,546 $73,469,037 $67,637,800
Public protection 251,384,379 256,573,399 230,141,732 230,654,519 216,932,185
Public ways and facilities 23,540,793 17,395,553 21,057,877 17,220,809 12,289,760
Health services 186,606,805 188,075,259 173,753,194 172,280,422 154,787,811
Public assistance 183,131,786 168,263,482 154,082,791 152,732,632 151,158,894
Education and recreation 21,394,961 21,746,756 20,198,264 19,273,900 18,333,677
Interest on long-term debt 3,901,678 4,331,445 5,275,669 3,347,473 6,478,003
Total Expenses $753,979,528 $733,786,877 $683,566,073 $668,978,792 $627,618,130
Change in Net Position $65,002,279 ($31,407,740) $26,285,523 $26,721,067 $22,340,712
WHERE THE MONEY COMES FROM
Page 8
OVERALL REVENUES
Program Revenues, 71%
General Revenues, 29%
PROGRAM REVENUES: Revenues
derived directly from the program
itself or from parties outside the
County’s taxpayers or citizenry; includes
Operating Grants and Contributions,
Charges for Services, and Capital Grants.
GENERAL REVENUES: Revenues
not dedicated to a specific program,
such as property taxes and related
revenues, sales taxes, and unrestricted
interest earnings.
Governmental Activities:Changes in Revenues
PROGRAM REVENUES increased
$99.5 million over the prior year due to
increases in federal and state funding
for COVID 19-Pandemic program costs
and increases in other charges for
services as the economy reopened.
GENERAL REVENUES increased by a
net $17.1 million primarily due to an
increase in property tax revenues as
property values continue to increase
and unexpected one-time revenues
from redevelopment dissolution.
WHERE THE MONEY COMES FROM FY2020/21
Program revenues 70.8%
Charges for Services 11.2%
Operating grants & contributions 59.5%
Capital grants & contributions 0.1%
General revenues*29.2%
Taxes 26.9%
Intergovernmental Revenues 0.8%
Interest Earnings 0.1%
All Others 1.4%
* Includes Transfers
TOTAL PROGRAM
REVENUES
TOTAL GENERAL
REVENUES
TOTAL REVENUE
GOVT. ACTIVITIES
$580.0
million
$238.9million $818.9
million
a a a
$99.5 million $17.1 million $116.6 million
$43.1 million - Coronavirus Relief Funds
$24.7 million - increase for health services
$6.6 million - increase for public assistance
$11.8 million - increase for public protection
(Prop 172 and Realignment funding)
$11.1 million - net increase in charges for
services revenues, including public facilities fees,
law enforcement services to other local entities
Significant changes are due to:
WHERE THE MONEY GOES
Page 9
THE EXPENSES of the County are
classified by functional areas, based on
the programs and services delivered to
the County’s citizenry. The functional
areas include General Government,
Public Protection, Public Ways and
Facilities, Health Services, Public
Assistance, Education and Recreation,
and Debt Interest. Some examples
of program expenses within these
functional areas include the costs of
operating the County Jail, Juvenile
Hall, maintenance of County parks and
roads, health clinic operations, library
operations, and supportive services
to County departments. Program
expenses include payroll and benefit
costs of program staff, materials and
supplies, computers, and small office
equipment.
THE NET INCREASE of $20.2 million is primarily the
result of $55.4 million net increases in salaries and benefits
costs, housing support and contracted direct services for
clients, increases in professional and program support
costs, offset by a $35.2 million decrease in pension
expense based on the GASB68 accounting valuation.
Governmental Activities:
Changes in Expenses
General Government
$84,019,126 8.6% increase
Public Protection
$251,384,379 2.0% decrease
Public Ways and Facilities
$23,540,793 35.3% increase
Health Services
$186,606,805 0.8% decrease
Public Assistance
$183,131,786 8.8% increase
Education and Recreation
$21,394,961 1.6% decrease
Interest on Long-Term Debt
$3,901,678 9.9% decrease
SOME COSTS are not
considered expenses, but still
require a significant outlay
of County funds: The County
spent over $21.1 million to
purchase/improve capital
assets. The County reduced its
debt by $8.4 million by making
principal payments on long-
term debt during the fiscal year.
11.1%
of budget
3.1%of budget
24.8%
of budget
24.4%of budget
2.8%
of budget
0.5%
of budget
33.3%of budget
$754.0 million CHANGES IN
EXPENSES
$20.2
million
a
WHERE THE PROPERTY TAX DOLLAR GOES
Page 10
SOLANO COUNTY’S total net assessment roll as of January 1, 2021, was valued
at $62.7 billion and increased by 2.97% over the prior year, a $1.8 billion increase.
The County’s net assessment roll consists of all assessable property valued
by the County Assessor, less those properties that are exempt from taxation.
The net roll is separated into the “secured assessment roll” – generally land
and improvements (such as structures) and the “unsecured assessment roll” –
primarily business /personal property (such as machinery and equipment). The
“secured assessment roll” generates most of the property tax revenues.
In FY2020/21, the County’s assessment rolls generated over $651.9 million in
property taxes which were distributed to county government, cities, school
districts (which includes ERAF*), redevelopment trust funds, and special districts
in Solano County.
Although Solano County only receives 23 cents per dollar, the County relies on
property taxes as the main source of revenue to pay for countywide services.
These 23 cents or 23% of the tax dollar accounts for $154.7 million in property
taxes to the County.
Property Tax
Explained
Property Tax is a major source of
revenue for local government
in California and is determined
by assessed values.
The property tax rate throughout
the State of California is 1% of
the assessed value.
Voter-approved debt is in
addition to the 1% rate.
33%Schools
19%ERAF*23%County 16%Cities 6%SpecialDistrict
The County receives 23 cents per property tax dollar
*ERAF, Educational Revenue Augmentation Fund – property taxes shifted from local agencies to schools to offset cuts in State revenues to the schools
3%
Redevelopment
SOLANO COUNTY HIGHLIGHTS
Page 11
Benicia Waterfront Vacaville Hills
Lagoon Valley Park
Suisun City Waterfront
Vallejo Harbor Rio Vista Waterfront
CONNECT WITH US
Page 12
Find us on the web at
SolanoCounty.com
Call the Auditor-Controller’s
Office at (707) 784-6280
Email the Auditor-Controller at
AuditorController@SolanoCounty.com
Find us on Facebook
@CountyOfSolano
(Facebook.com/CountyOfSolano)
FRAUD, WASTE AND ABUSE –
Whistleblower Program
As part of our role in the stewardship and
oversight of public funds, the Auditor-Controller’s
Internal Audit Division operates a Whistleblower
Program. The program provides employees and
citizens with an easy and anonymous way to
participate in helping the County protect its
financial resources, as well as identify potential
fraud, waste and abuse. An incident can be
reported 24-hours a day, 365 days a year, by
phone at 1-866-84-TIPS or by visiting our website:
https://www.solanocounty.com/depts/auditor/
whistleblower/default.asp.
Office of the Auditor-Controller
Phyllis S. Taynton, CPA
Solano County, California
675 Texas Street, Ste. 2800, Fairfield, CA 94533
(707) 784-6280 | @CountyOfSolano
SolanoCounty.com/Depts/Auditor