HomeMy WebLinkAboutSonoma County - Public Financial ReportSonoma County California
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022
June 30, 2022
Prepared by the Office of the
Auditor-Controller-Treasurer-Tax Collector
Erick Roeser
Auditor-Controller-Treasurer-Tax Collector
COUNTY OF SONOMA
STATE OF CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For The Fiscal Year Ended
TABLE OF CONTENTS
TABLE OF CONTENTS Page(s)
INTRODUCTORY SECTION
Letter to the Board of Supervisors and Citizens of the County .............................................................................................. i-viii
Directory of Appointed and Elected Officials .......................................................................................................................... x-xi
County Organizational Chart...................................................................................................................................................... xii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT .............................................................................................................................................. 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) ............................................................................................... 8
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Position ...................................................................................................................................................... 25
Statement of Activities ........................................................................................................................................................... 27
Fund Financial Statements:
Governmental Funds:
Balance Sheet ........................................................................................................................................................................ 29
Reconciliation of the Balance Sheet to Statement of Net Position ....................................................................................... 30
Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................. 31
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities ........................................................................................................................................ 32
Proprietary Funds:
Statement of Net Position ..................................................................................................................................................... 33
Statement of Revenues, Expenses and Changes in Fund Net Position ................................................................................. 36
Statement of Cash Flows ....................................................................................................................................................... 37
Fiduciary Funds:
Statement of Net Position ..................................................................................................................................................... 39
Statement of Changes in Fiduciary Net Position ................................................................................................................... 40
Notes to the Basic Financial Statements:
(1) Summary of Significant Accounting Policies .............................................................................................................. 42
(2) Cash and Investments ................................................................................................................................................ 53
(3) Receivables ................................................................................................................................................................ 68
(4) Interfund Transactions............................................................................................................................................... 68
(5) Capital Assets … ......................................................................................................................................................... 70
(6) Deferred Outflows of Resources................................................................................................................................ 72
(7) Payables ..................................................................................................................................................................... 73
(8) Advances from Grantors and Third Parties................................................................................................................ 73
(9) Leases ........................................................................................................................................................................ 74
(10) Long-Term Liabilities ................................................................................................................................................. 76
(11) Employees’ Retirement Plans .................................................................................................................................... 83
(12) Other Postemployment Benefits (OPEB) ................................................................................................................... 88
(13) Risk Management ...................................................................................................................................................... 94
COUNTY OF SONOMA, CALIFORNIA
TABLE OF CONTENTS (Continued)
Page(s)
(14) Landfill Closure and Postclosure Care Costs ........................................................................................................... 95
(15) Commitments and Contingencies ........................................................................................................................... 96
(16) Deferred Inflows of Resources ................................................................................................................................ 96
(17) Service Concession Arrangement ............................................................................................................................ 97
(18) Successor Agency Private Purpose Trust Fund ........................................................................................................ 98
(19) Net Position/Fund Balances .................................................................................................................................... 99
(20) Net Position Restatement – GASB 87 .................................................................................................................... 100
REQUIRED SUPPLEMENTARY INFORMATION (Unaudited)
Pension Plan:
Schedule of County’s Proportionate Share of the Net Pension Liability ............................................................................ 103
Schedule of County Pension Contributions ........................................................................................................................ 103
OPEB:
Schedule of County's Net OPEB Plan Liability and Related Ratios ..................................................................................... 104
Schedule of OPEB Plan Investment Returns ....................................................................................................................... 104
Schedule of County OPEB Contributions ............................................................................................................................ 104
Schedule of Changes in Net OPEB Liability and Related Ratios ......................................................................................... 105
Budgetary Comparison Schedules:
General Fund………………………………………….…………………………….…………………………………………………………………………………..... 106
Human Services Special Revenue Fund .............................................................................................................................. 108
Health and Sanitation Special Revenue Fund ..................................................................................................................... 109
Open Space Special Tax Account Special Revenue Fund .................................................................................................... 110
Notes to Required Supplementary Information ................................................................................................................. 111
OTHER SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet ................................................................................................................................................... 115
Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................ 116
Nonmajor Special Revenue Funds:
Combining Balance Sheet…….………. ................................................................................................................................... 117
Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................ 118
Budgetary Comparison Schedules:
Capital Projects Fund ......................................................................................................................................................... 119
Debt Service Fund .............................................................................................................................................................. 120
Community Investment Special Revenue Fund ................................................................................................................. 121
Agricultural Preservation and Open Space District Special Revenue Fund ....................................................................... 122
Roads Special Revenue Fund ............................................................................................................................................. 123
Mandated Revenues Special Revenue Fund ..................................................................................................................... 124
2011 Realignment Special Revenue Fund ......................................................................................................................... 125
Special Districts Fund ......................................................................................................................................................... 126
Nonmajor Enterprise Funds:
Combining Statement of Net Position ............................................................................................................................... 128
TABLE OF CONTENTS
TABLE OF CONTENTS (Continued)
Page(s)
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................................................... 129
Combining Statement of Cash Flows ................................................................................................................................. 130
Internal Service Funds:
Combining Statement of Net Position .............................................................................................................................. 132
Combining Statement of Revenues, Expenses and Changes in Fund Net Position .......................................................... 133
Combining Statement of Cash Flows ................................................................................................................................ 134
Discrete Component Units:
Combining Statement of Net Position............................................................................................................................. 136
Combining Statement of Activities .................................................................................................................................. 137
Fiduciary Funds:
Pension (and Other Employee Benefit) Trust Funds Combining Statement of Net Position ............................................ 140
Pension (and Other Employee Benefit) Trust Funds Combining Statement of Changes in Fiduciary Net Position ........... 141
Custodial External Investment Pool Funds Combining Statement of Net Position ........................................................... 143
Custodial External Investment Pool Funds Combining Statement of Changes in Fiduciary Net Position ......................... 144
Other Custodial Funds Combining Statement of Net Position .......................................................................................... 145
Other Custodial Funds Combining Statement of Changes in Fiduciary Net Position ........................................................ 146
STATISTICAL SECTION (Unaudited)
Net Position by Category ................................................................................................................................................. 149
Expenses by Function ...................................................................................................................................................... 151
Changes in Net Position .................................................................................................................................................. 153
Net Expenses by Function ............................................................................................................................................... 155
Fund Balances of Governmental Funds ........................................................................................................................... 157
Changes in Fund Balances of Governmental Funds ........................................................................................................ 159
Assessed Value of Taxable Property ............................................................................................................................... 161
Property Tax Rates – Direct and Overlapping Governments .......................................................................................... 162
Principal Revenue Taxpayers........................................................................................................................................... 163
Property Tax Levies and Collections ................................................................................................................................ 164
Ratios of Outstanding Debt ............................................................................................................................................. 165
Computation of Legal Debt Margin ................................................................................................................................. 167
Schedule of Direct and Overlapping Debt ....................................................................................................................... 168
Demographics and Economic Statistics ........................................................................................................................... 169
Major Employers ............................................................................................................................................................. 170
County Employees by Function ....................................................................................................................................... 171
Operating Indicators by Function/Program .................................................................................................................... 173
Capital Assets Statistics by Function ............................................................................................................................... 175
GLOSSARY
Glossary ………….. .............................................................................................................................................................. 180
I NTRODUCTORY S ECTION
ERICK ROESER
AUDITOR-CONTROLLER
TREASURER-TAX COLLECTOR
585 FISCAL DRIVE, SUITE 100
SANTA ROSA, CA 95403
PHONE (707) 565-2631
FAX (707) 565-3489
AMANDA RUCH, CPA
ASSISTANT AUDITOR-CONTROLLER
TREASURER-TAX COLLECTOR
BROOKE KOOP, CPA
ASSISTANT AUDITOR-CONTROLLER
TREASURER-TAX COLLECTOR
KATHLEEN PARNELL
ASSISTANT AUDITOR-CONTROLLER
TREASURER-TAX COLLECTOR
i
January 13, 2023
To the Board of Supervisors and Citizens of Sonoma County:
The Annual Comprehensive Financial Report (ACFR) of the County of Sonoma (County) for the fiscal year ended June
30, 2022, is hereby submitted in compliance with Sections 25250 and 25253 of the Government Code of the State
of California.
Management assumes full responsibility for the completeness and reliability of the information contained in this
report, based upon a comprehensive internal control framework established for this purpose. Because the cost of
internal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute,
assurance that the financial statements are free of any material misstatements.
The Independent Auditor’s Report is located at the front of the financial section of this report. Eide Bailly LLP, a firm
of licensed certified public accountants, has issued an unmodified (“clean”) opinion on the County’s financial
statements for the fiscal year ended June 30, 2022.
The Management’s Discussion and Analysis (MD&A) immediately follows the Independent Auditor’s Report and
provides a narrative introduction, overview, and analysis of the financial statements. The MD&A complements this
letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
Incorporated in 1850, the County of Sonoma is located in northwest California, about fifty miles north of San
Francisco. The County occupies over 1,768 square miles of land and water serving a population of 482,404. Open
space and agricultural land account for the majority of this acreage. Nine incorporated cities are within the County:
Santa Rosa, Petaluma, Rohnert Park, Town of Windsor, Healdsburg, Sonoma, Cloverdale, Sebastopol, and Cotati. The
largest employment categories include government, healthcare and social services, education, hospitality and food
services. The region’s world-renowned wineries, geographically diverse open spaces, and mild climate, make the
County a popular tourism and recreation destination.
The County government functions as a local government body to serve the needs of its residents. As geographical
and political subdivisions of the state, counties serve a dual role; providing municipal services in the unincorporated
areas and acting as administrative agents for state and federal government programs and services. As a general-law
county, Sonoma County is bound by state law as to the number and duties of County elected officials. The County
has five districts that are approximately equal in population with boundaries adjusted every ten years following the
federal census. Policymaking and legislative authority are vested in the County Board of Supervisors (the Board).
Board members are elected to four-year staggered terms, and each member represents one of the County’s five
districts. The County has four elected department heads: Auditor-Controller-Treasurer-Tax Collector, Clerk-
Recorder-Assessor, District Attorney, and Sheriff-Coroner. Other department heads are appointed by the Board or
the County Administrator.
COUNTY OF SONOMA, CALIFORNIA
ii
The County employed 3,827 full-time employees in fiscal year 2021-22 in order to provide a full range of services to
its residents. The County’s principal functions include seven major areas: general government, public protection,
public ways and facilities, health and sanitation, public assistance, education, and recreation and cultural services.
The State and Federal governments mandate certain minimum levels of services in the public protection, public
assistance and health areas. The majority of services performed by the County are provided for all residents,
regardless of whether those residents live in cities or unincorporated areas of the County, and every County resident
directly or indirectly benefits from these services.
Included in operations are various component units, which provide specific services County-wide or to distinct
geographic areas within the County. The governmental reporting entity consists of the County and its component
units. Component units are legally separate organizations for which the Board is financially accountable, or other
organizations whose nature and significant relationship with the County are such that exclusion would cause the
County’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment
of a voting majority of the component unit’s board, and either the County’s ability to impose its will on the
organization or the potential for the organization to provide a financial benefit to or impose a financial burden on
the County. The following component units, although legally separate entities, are considered to be part of the
primary government for financial reporting purposes: Sonoma County Fair and Exposition, Inc., the Sonoma County
Securitization Corporation, Sonoma County Agricultural Preservation and Open Space District, the Sonoma County
Public Financing Authority, and Sonoma County Employees’ Retirement Association. Seven discrete component units
are presented in the financial statements, separate from the primary government: Sonoma County Community
Development Commission (CDC), Sonoma County Water Agency (identified herein as Sonoma Water), four sanitation
districts (Sonoma Valley County Sanitation District, Russian River County Sanitation District, South Park County
Sanitation District, and Occidental County Sanitation District) and the Sonoma County Water and Wastewater
Financing Authority.
The County is required by State law to adopt a final budget each year. This annual budget serves as the foundation
for the County’s financial planning and control. Budgets are adopted for governmental and proprietary funds. The
County maintains budgetary controls to assure compliance with legal provisions embodied in the annual
appropriated budget approved by the Board. The County also maintains an encumbrance accounting system to assist
departments in accomplishing budgetary control. Unencumbered annual appropriations lapse at year-end. The legal
level of control for appropriations is exercised at the division level within fund level. Appropriations at this level may
be adjusted with Board approval or delegated Board approval. Management may adjust below this level. Such
adjustments by the Board and management are reflected in the revised budgetary data presented in the required
supplementary section of the ACFR.
REQUESTS FOR INFORMATION
Requests for additional financial information should be addressed to the Sonoma County Auditor-Controller-
Treasurer-Tax Collector, 585 Fiscal Drive, Suite 100, Santa Rosa, California 95403.
LETTER OF TRANSMITTAL
iii
FACTORS AFFECTING ECONOMIC CONDITION
The factors herein are measured at various points in time depending on the most recent information available.
Economy
• During Fiscal Year 2021-22 Sonoma County
experienced mixed economic conditions including a
significant increase in the rate of inflation, and a
continued decrease in the unemployment rate and
transient occupancy tax rebounding from pandemic
lows.
• As of June 2022, median home prices increased 5.3%.
Sonoma County remains one of the more affordable
Bay Area counties.
Unemployment
• As of June 2022, the County’s unemployment rate
decreased to 2.7% from 5.8% in June 2021. This is
lower than both California’s unemployment rate of
4.2% and the national unemployment rate of 3.6% as
of June 2022.
• As of September 2022, the County unemployment
rate was 2.5% compared to 4.5% in September 2021.
The County’s September 2022 rate is lower than both
the California and national unemployment rates of
3.9% and 3.5%, respectively.
Income
• County per capita personal income increased to
$81,591 for the 2021 calendar year, from $72,213 for
the 2020 calendar year.
Retail Sales
• Retail sales county-wide increased 19.2% to $11.8
billion for the 2021 calendar year, from $9.9 billion for
the 2020 calendar year.
• County unincorporated area retail sales increased
20% to $2.4 billion in 2021 calendar year, from $2.0
billion in the 2020 calendar year.
Unemployment Rate as of June 30
Annual Per Capita Income-Calendar Year
Annual Retail Sales-Calendar Year
0
2
4
6
8
10
12
14
2018 2019 2020 2021 2022
pe
r
c
e
n
t
55.0
60.0
65.0
70.0
75.0
80.0
85.0
2017 2018 2019 2020 2021
th
o
u
s
a
n
d
s
o
f
d
o
l
l
a
r
s
8
9
10
11
12
2017 2018 2019 2020 2021
bi
l
l
i
o
n
s
o
f
d
o
l
l
a
r
s
COUNTY OF SONOMA, CALIFORNIA
iv
Real Estate
• As of June 2022, the median home price increased
5.3% to $801,000 from $760,500 in June 2021.
• Certified valuation of secured and unsecured
property, including residential and non-residential,
increased 3.2% to $101.8 billion for fiscal year 2021-
22 from $98.6 billion for fiscal year 2020-21.
• Certified valuation of residential property increased
4.0% to $70.6 billion for fiscal year 2021-22 from
$67.9 billion for fiscal year 2020-21.
• Certified valuation of non-residential property
increased 1.6% to $31.2 billion for fiscal year 2021-22
from $30.7 billion for fiscal year 2020-21.
Tourism
• Sonoma County’s lodging industry average annual
occupancy increased to 64.0% in calendar year 2021
from 53.0% in calendar year 2020.
• County-wide transient occupancy tax (TOT)
collections increased 68.2% to $60.4 million in 2021
compared to $35.9 million in 2020. Subsequently,
TOT increased 49.7% to $26.2 million for the first two
quarters of 2022, compared to $17.5 million for the
first two quarters of 2021.
Median Home Price as of June 30
Annual Transient Occupancy Tax-
Calendar Year
500
600
700
800
900
2018 2019 2020 2021 2022
th
o
u
s
a
n
d
s
o
f
d
o
l
l
a
r
s
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0
2017 2018 2019 2020 2021
mi
l
l
i
o
n
s
o
f
d
o
l
l
a
r
s
LETTER OF TRANSMITTAL
v
FINANCIAL INDICATORS
The reporting period for the financial indicators is fiscal year 2021-22. County and other governmental agency’s
transient occupancy tax increased 35.0%, local sales tax increased 34.7%, and the County’s largest revenue source,
secured property taxes, increased 3.4%. The County General Fund’s share of secured property tax revenue increased
4.2%.
California’s 2022-23 Budget Act notes a $307.9 billion spending plan. The state budget will significantly aid millions
of Californians being paid low wages, including those who have suffered job loss and are struggling to support
themselves and their families, who continue to face housing and food insecurities, lack of child care support, and
those who are seeking education and training to gain new skills and secure good jobs. Other key areas of investment
include: addressing the impacts of climate change, higher education, students and adult learners; social safety net
resources for working families; workforce development; broadband access for all; and providing support for business
and the economy.
GOALS AND INITIATIVES
On March 2, 2021, the Sonoma County Board of Supervisors approved a Five-Year Strategic Plan that includes a
broad spectrum of goals that will shape the County's priorities and activities in the coming years. The Strategic Plan
identifies five pillars: Healthy and Safe Communities; Organizational Excellence; Racial Equity and Social Justice;
Climate Action and Resiliency; and Resilient Infrastructure. Each of these pillars have accompanying goals and
objectives. See https://sonomacounty.ca.gov/Board-of-Supervisors/Strategic-Plan/
Pillar I - Healthy and Safe Communities
Provide quality and equitable housing, health, and human services for all.
• Goal 1: Expand integrated system of care to address gaps in services to the County’s most vulnerable
• Goal 2: Establish equitable and data-driven distribution of services
• Goal 3: In collaborations with cities, increase affordable housing development near transportation and
easy access to services
• Goal 4: Reduce the County’s overall homeless population by 10% each year by enhancing services through
improved coordination and collaboration
• Goal 5: Continue to invest in public safety so that residents and visitors feel safe in our community
Pillar II - Organizational Excellence
Be an innovative, effective, engaged, and transparent organization focused on quality programs and services.
• Goal 1: Strengthen operational effectiveness, fiscal reliability, and accountability
• Goal 2: Increase information sharing and transparency and improve County and community engagement
• Goal 3: Become an employer of choice with a diverse workforce that reflects our community, and an
employer with a positive work culture that results in engaged and developed employees
• Goal 4: Seek out grant funding to enhance programs and improve infrastructure
Pillar III - Racial Equity and Social Justice
Achieve racial equity in County service provision and ensure a workforce reflective of the community we serve.
• Goal 1: Foster a County organizational culture that supports the commitment to achieving racial equity
• Goal 2: Implement strategies to make the County workforce reflect County demographic across all levels
COUNTY OF SONOMA, CALIFORNIA
vi
• Goal 3: Ensure racial equity throughout all County policy decisions and service delivery
• Goal 4: Engage community and stakeholder groups to develop priorities and to advance racial equity
Pillar IV - Climate Action and Resiliency
Make Sonoma County carbon neutral by 2030.
• Goal 1: Continue to invest in wildfire preparedness and resiliency strategies
• Goal 2: Invest in the community to enhance resiliency and become carbon neutral by 2030
• Goal 3: Make all County facilities carbon free and zero waste and resilient
• Goal 4: Maximize sustainability and emissions reductions in all County Fleet vehicles
• Goal 5: Maximize opportunities for mitigation of climate change and adaptation through land
conservation work and land use policies
Pillar V - Resilient Infrastructure
Enhance community resilience to fire and other hazards by investing in County facilities and infrastructure;
including roads, buildings and property, communications, and flood protection.
• Goal 1: Invest in County buildings and technology to enhance service delivery and improve employee
mobility
• Goal 2: Invest in capital improvements to ensure continuity of operations and disaster response
• Goal 3: Continue to invest in critical road, bridge, bicycle, and pedestrian infrastructure
• Goal 4: Implement countywide technological solutions to promote resiliency and expand community
access
• Goal 5: Support, fund, and expand flood protection
The following highlights represent a partial list of initiatives accomplished in fiscal year 2021-22 in support of the
Goals noted above:
• Disseminated $5.7 million in State Emergency Solutions Grant-CV funds to reduce the impact of COVID-19
on individuals experiencing homelessness
• Administered the completion of the new Crestwood Mental Health Facility located on the Los Guilicos
Campus
• Introduced Anti-Racist Results Based Accountability to the American Rescue Plan Act (ARPA) Equity Work
Group to support the development of priority areas for ARPA funding and possible performance measures
for future grantees
• Developed new Emergency Operations Plan Annexes for hazards and specific emergency functions
including Alert & Warning, Public Safety Power Shutoff (PSPS), Evacuation, and Mass Care & Shelter
• The Pretrial Program implementation has successfully contributed to reducing the jail population from
1,050 in December 2019 to 726 in February 2022 (31% reduction)
• Victims Services coordinated Homeless Outreach Services with the Family Justice Center and local non-
profits to house 695 unsheltered victims of crime and provided 139 nights of emergency hotel
accommodations
• Installed General Mobile Radio Service repeaters at Fitch Mountain and Schellenger Road to bolster
communication during disasters
• Created a vegetation management grant program to distribute PG&E settlement funds into the
community to help mitigate fire risk
LETTER OF TRANSMITTAL
vii
LONG-TERM FISCAL OUTLOOK
The County’s fiscal position has recovered from the Pandemic. Revenue streams have nearly all recovered to, and
in some cases surpassed, pre-pandemic levels. The long-term fiscal outlook has a high level of uncertainty due to
the related factors of high inflation and increasing interest rates.
Looking ahead, property tax growth is expected to slow significantly as property sales, which drive the majority of
growth, are impacted by higher interest rates. While a reduction in assessed value is not expected, a prolonged
period of low growth is.
Sales tax revenue is expected to grow only slowly over the next few years. Should the state enter a significant
recession, these figures could drop significantly.
While the worst of the pandemic may be behind us, demand for County services is not reducing. Disaster mitigation,
the fight against homelessness, strengthening mental health and social safety net services, and striving for social
equity all remain critical challenges.
The County is committed to fiscal sustainably, working within its means while engaging the community in
opportunities to ensure funding for community priorities, and works constantly to best provide critical services while
maintaining a balanced budget and sufficient reserves to weather potential downturns.
RELEVANT FINANCIAL POLICIES
Balanced Budget
The budget must balance expenditure appropriations with resources. The County must live within its own means
and avoid disturbing other local jurisdictions’ revenue sources to resolve its deficiencies. Furthermore, any deviation
from a balanced budget is not permitted by the California State Government Code, which states: “In the
recommended, adopted, and final budgets the funding sources shall equal the financing uses.” (Government Code
§29009).
Expenditure Management & Control
Federal and State program reductions will not be backfilled with County discretionary revenues except by the Board
of Supervisors direction. The Board typically does not backfill these programs due to their sheer size and magnitude
on the County’s financial position.
Debt Management
The County has a Debt Advisory Committee (DAC) to provide guidance and support related to all County debt
issuance and management. The DAC provides the County Administrator and the Board of Supervisors a review
process to ensure that all potential debt obligations are evaluated for cost effectiveness, optimal structure and the
ability to maintain post issuance compliance requirements.
Fund Balance Reserve
Sonoma County will create and maintain a prudent level of financial resources to protect against the need to reduce
service levels or raise fees due to temporary revenue shortfalls or unpredicted one-time expenditures. Consistent
with best practice recommendations from the Government Finance Officers Association (GFOA), the County will
strive to maintain a total unassigned General Fund Reserve balance equal to 1/6, or 2 months, of annual General
Fund operating revenues.
COUNTY OF SONOMA, CALIFORNIA
x
DIRECTORY OF APPOINTED AND ELECTED OFFICIALS
APPOINTED OFFICERS & DEPARTMENT H EADS
Agricultural Commissioner -Sealer of Weights & Measures .............................................. Andrew Smith
Agricultural Preservation & Open Space District General Manager ....................................... Misti Arias
Child Support Services Director........................................................................... Jennifer Traumann
Community Development Commission Executive Director (Interim)........................................ Dave Kiff
County Administrator.............................................................................................. Sheryl Bratton
County Counsel ..................................................................................................... Robert Pittman
Economic Development Director (Interim) .................................................................... Ethan Brown
Emergency Management Manager ..................................................................... Christopher Godley
Fair Manager ...................................................................................................... Rebecca Bartling
General Services Director........................................................................................... Caroline Judy
Health Services Director ................................................................................................ Tina Rivera
Human Resources Director ....................................................................................Christina Cramer
Human Services Director ................................................................................... Angela Struckmann
Office of Equity……………………………………………………………………………………………………………..Alegria De La Cruz
Information Systems Director ..................................................................................... John Hartwig
Permit Sonoma Director .............................................................................................. Tennis Wick
Chief Probation Officer ................................................................................................. David Koch
Public Defender......................................................................................................... Brian Morris
Regional Parks Director ............................................................................................ Bert Whitaker
Transportation & Public Works Director .............................................................. Johannes Hoevertsz
U.C. Cooperative Extension Director....................................................................... Stephanie Larson
Sonoma Water General Manager .................................................................................. Grant Davis
DIRECTORY OF APPOINTED AND ELECTED OFFICIALS
xi
DIRECTORY OF APPOINTED AND ELECTED OFFICIALS
ELECTED OFFICIALS
Board of Supervisors:
District One .......................................................................................................... Susan Gorin
District Two........................................................................................................ David Rabbitt
District Three...................................................................................................... Chris Coursey
District Four ......................................................................................................... James Gore
District Five ....................................................................................................... Lynda Hopkins
Auditor -Controller -Treasurer-Tax Collector ................................................................... Erick Roeser
County Clerk\Recorder\Assessor\Registrar of Voters ........................................................ Deva Proto
District Attorney........................................................................................................... Jill Ravitch
Sheriff-Coroner ........................................................................................................... Mark Essick
COUNTY ORGANIZATIONAL CHART
Citizens of Sonoma County
Elected
Department
Heads Board / County
Affiliated
AgenciesCounty
Administrator
(Clerk of the
Board)
Board of
Supervisors
Auditor-
Controller
Treasurer-Tax-
Collector
Clerk Recorder-
Assessor
District
Attorney
Sheriff -
Coroner
LAFCO
Executive
Director
(Local Agency
Formation
Commission)
General
Services
Director
Information
Systems
Director
Emergency
Management
Director
Grand Jury [1]
Chief Probation
Officer [1]
UC Cooperative
Extension
Director [2]
IHSS Public
Authority
Manager
Community
Development
Commission
Director
Sonoma Water
General Mgr.
Agriculture
Preservation &
Open Space
General Mgr.
County Fair
Manager
(Fair Board)
Retirement
Administrator
(SCERA Board)
Child Support
Services
Director
Human
Services
Director
Health Services
Director
Human
Resources
Director
County Counsel
Regional Parks
Director
Independent
Office of Law
Enforcement
Review &
Outreach
Director
Transportation
& Public Works
Director
Agricultural
Commissioner-
Sealer
Permit Sonoma
Director
Economic
Development
DirectorPublic
Defender
1
Elected Officials
Appointed by the County Administrator
BOS Serves as Board of Directors
Appointed by the Superior Court
Appointed by the Board of Supervisors
2 Appointed by the University of California
Governed by Affiliated Boards
LEGEND
Office of
Equity
Director
xii
F INANCIAL S ECTION
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1
Independent Auditor’s Report
Board of Supervisors
County of Sonoma, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the County of Sonoma, California (County), as of and for the year ended June 30, 2022,
and the related notes to the financial statements, which collectively comprise the County’s basic financial
statements as listed in the table of contents.
In our opinion, based on our audit and the report of other auditors, the accompanying financial
statements referred to above present fairly, in all material respects, the respective financial position of
the governmental activities, the business-type activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of the County, as of June 30, 2022,
and the respective changes in financial position, and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
We did not audit the financial statements of the Sonoma County Agricultural Preservation and Open
Space District (nonmajor governmental fund), Refuse Fund (major enterprise fund), Airport Fund (major
enterprise fund), Energy Independence Program Fund (major enterprise fund), Transit Fund (major
enterprise fund), Community Development Commission (discretely presented component unit), Sonoma
County Water Agency (discretely presented component unit), Sonoma Valley County Sanitation District
(nonmajor discretely presented component unit), Russian River County Sanitation District (nonmajor
discretely presented component unit), South Park County Sanitation District (nonmajor discretely
presented component unit), Occidental County Sanitation District (nonmajor discretely presented
component unit), Sonoma County Fair and Exposition, Inc. (nonmajor enterprise fund) and the Sonoma
County Employees’ Retirement Association (SCERA) (fiduciary fund), which represent the following
percentages of assets, net position/fund balance and revenues of the opinion units listed below as of
June 30, 2022:
Opinion Unit Assets
Net Position/
Fund Balances Revenues
Aggregate Discretely Presented Component Units 100% 100% 100%
Governmental Activities 17% 26% 1%
Business-Type Activities 96% 95% 93%
Aggregate remaining fund information 61% 69% 20%
Major Enterprise Fund – Transit Fund 100% 100% 100%
Major Enterprise Fund – Refuse Fund 100% 100% 100%
Major Enterprise Fund – Airport Fund 100% 100% 100%
Major Enterprise Fund – Energy Independence
Program Fund 100% 100% 100%
2
Those statements were audited by other auditors whose report has been furnished to us, and our
opinions, insofar as it relates to the amounts included for the Sonoma County Agricultural Preservation
and Open Space District (nonmajor governmental fund), Refuse Fund (major enterprise fund), Airport
Fund (major enterprise fund), Energy Independence Program Fund (major enterprise fund), Transit Fund
(major enterprise fund), Community Development Commission (discretely presented component unit),
Sonoma County Water Agency (discretely presented component unit), Sonoma Valley County Sanitation
District (nonmajor discretely presented component unit), Russian River County Sanitation District
(nonmajor discretely presented component unit), South Park County Sanitation District (nonmajor
discretely presented component unit), Occidental County Sanitation District (nonmajor discretely
presented component unit), Sonoma County Fair and Exposition, Inc. (nonmajor enterprise fund) and
the Sonoma County Employees’ Retirement Association (SCERA) (fiduciary fund) are based solely on the
report of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the
County and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinions.
Adoption of New Accounting Standard
As discussed in Note 1 to the financial statements, the County has adopted the provisions of
Government Accounting Standards Board (GASB) Statement No. 87, Leases, for the year ended June 30,
2022. Accordingly, a restatement has been made to the governmental activities, business-type activities,
Refuse Fund (major enterprise fund), and Airport Fund (major enterprise fund) net position as of July 1,
2021, to restate beginning net position. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the County’s ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
3
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the County’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the County’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, the schedules for the Sonoma County Employees’ Retirement Association
(SCERA) plan and the Sonoma County Other Postemployment Healthcare plan, and the budgetary
comparison information, as listed in the table of contents, be presented to supplement the basic
financial statements. Such information is the responsibility of management and, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We and other auditors have applied certain
limited procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with
4
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County’s basic financial statements. The combining and individual nonmajor
fund financial statements and schedules are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. The information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditor's report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 13,
2023, on our consideration of the County’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the County’s internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering
the County’s internal control over financial reporting and compliance.
Rancho Cucamonga, California
January 13, 2023
MANAGEMENT’S DISCUSSION
AND ANALYSIS
(UNAUDITED)
8
MANAGEMENT'S DISCUSSION AND ANALYSIS
(Unaudited)
As management of the County of Sonoma, California (County), we offer readers of the County’s financial statements
this narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2022. We encourage
readers to consider the information presented here in conjunction with additional information provided in the
County’s Basic Financial Statements, which immediately follow this section.
Financial Highlights
The County’s net position was $2.0 billion at June 30, 2022, an increase from prior year of $280.1 million.
The County’s net position included $1.6 billion net investment in capital assets, $446.7 million in restricted net
position offset by a $48.0 million deficit in unrestricted net position. The deficit is primarily the result of the
County’s deferred amounts related to pension and other postemployment benefits (OPEB).
The County’s governmental funds reported a combined ending fund balance of $869.7 million, an increase of
$84.9 million over prior year. Amounts available for spending include restricted, committed, assigned, and
unassigned fund balances and total 98.5% of ending fund balance. Of this amount, $435.0 million is restricted by
law or externally imposed requirements, $34.6 million is committed for specific purposes, $319.6 million is
assigned to specific purposes determined by the Board of Supervisors and the County Administrator’s Office,
$67.3 million is unassigned. $13.2 million is nonspendable.
The General Fund unassigned fund balance was $67.3 million, or 12.4% of total General Fund expenditures.
Additional information and analysis on the financial highlights follow in the sections and tables below.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. The
County’s basic financial statements consist of three components: 1) government‐wide financial statements, 2) fund
financial statements, and 3) notes to the basic financial statements. This report also contains supplementary
information in addition to the basic financial statements.
Government‐Wide Financial Statements
Government‐wide financial statements provide a broad overview of the County’s finances in a manner similar to a
private‐sector business. These statements provide both long‐term and short‐term information about the County’s
overall financial status.
The Statement of Net Position is conceptually the same as a balance sheet in the private‐sector. The Statement of
Activities reports income (revenues) and expenses. Changes in net position (revenues and expenses) are reported as
soon as the underlying event occurs, regardless of the timing of related cash flows, which may occur in a future fiscal
year (e.g., uncollected taxes and earned but unused vacation leave).
Government‐wide financial statements distinguish functions of the County that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of costs through user fees and charges (business‐type activities). Governmental activities include
general government, public protection, public ways and facilities, health and sanitation, public assistance, education,
and recreation and cultural services. Business‐type activities include Refuse, the Charles M. Schultz Sonoma County
Airport (Airport), Sonoma County Energy Independence Program (SCEIP), Sonoma County Transit, the Sonoma County
Fair and Exposition Inc. (Fair), Marinas, and other districts.
MANAGEMENT’S DISCUSSION AND ANALYSIS
9
Component units are included in government‐wide financial statements and are legally separate entities for which the
County is financially accountable. If the component unit provides services exclusively to the County or has substantially
the same governing board as the County, and there is a financial benefit or burden relationship or County management
has operational responsibility, then the component is classified as a blended component unit. If a component unit
does not meet the preceding requirements it is presented as a discrete component unit.
The County’s blended component units include:
Sonoma County Fair and Exposition, Inc.
Sonoma County Securitization Corporation
Sonoma County Agricultural Preservation and Open Space District
Sonoma County Public Financing Authority
Sonoma County Employees’ Retirement Association (SCERA)
The County’s discrete component units include:
Sonoma County Water Agency (Sonoma Water)
Sonoma County Community Development Commission
Four sanitation districts: Sonoma Valley County Sanitation District, Russian River County Sanitation District,
South Park County Sanitation District, and Occidental County Sanitation District
Sonoma County Water and Wastewater Financing Authority (The Financing Authority or WFA). WFA does not
issue separate financial statements and is included in the discrete component financial information for
Sonoma Water and the Sonoma Valley and South Park Sanitation Districts. Additional information on WFA is
available in the Notes to the Basic Financial Statements, Note 1 – Summary of Significant Accounting Policies.
Fund Financial Statements
Fund financial statements are groupings of related accounts used to maintain control over resources that are
segregated for specific activities or objectives. The County, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance‐related legal requirements. All the funds of the
County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government‐wide financial statements. However, unlike the government‐wide financial statements, governmental
fund financial statements focus on near‐term inflows, outflows, and balances of spendable resources. This information
is useful in assessing what financial resources are available or may be needed in the future to finance County programs.
Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government‐wide financial statements. Both the governmental funds balance sheet and
the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation
to facilitate this comparison between governmental funds and governmental activities.
The County maintains several individual governmental funds organized according to their type (general, special
revenue, debt service, and capital projects). Information is presented separately in the governmental funds balance
sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances.
The County maintains four major funds: General Fund, Human Services Special Revenue Fund, Health and Sanitation
Special Revenue Fund, and Open Space Special Tax Account Special Revenue Fund. Data from the other non‐major
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non‐
major governmental funds is provided in the form of combining statements elsewhere in this report.
The County adopts an annual appropriated budget for its General Fund, special revenue, debt service and capital
project funds. A budgetary comparison schedule is included for each of these funds.
COUNTY OF SONOMA, CALIFORNIA
10
Proprietary Funds
Proprietary funds provide the same type of information as the government‐wide financial statements, only in more
detail. The County maintains two different types of proprietary funds: enterprise funds and internal service funds.
Enterprise funds are included in the government‐wide financial statements as business‐type activities and include
Refuse, Airport, SCEIP, Transit, Fair, Marinas, and other districts.
Internal service funds are included in the government‐wide financial statements under governmental activities as they
predominantly benefit governmental rather than business‐type functions. These funds are used to account for and
allocate costs internally among the County’s various internal functions. Internal service funds used by the County
include: Insurance, Heavy Equipment Replacement, Enterprise Resource Planning (ERP) System, Employee Retirement
and Other Postemployment Benefits (OPEB).
The proprietary fund financial statements provide separate information for Refuse, Airport, SCEIP, and Transit, all of
which are considered to be major funds of the County. Conversely, all internal service funds are combined into a single,
aggregated presentation in the proprietary fund financial statements. Individual fund data for the non‐major
enterprise funds and internal service funds is provided in the form of combining statements elsewhere in this report.
Fiduciary Funds
Fiduciary funds account for resources held for the benefit of parties outside the government and therefore are not
reflected in the government‐wide financial statements.
Notes to the Basic Financial Statements ‐ The notes provide additional information essential to a full understanding
of the data provided in the government‐wide and fund financial statements.
Required Supplementary Information ‐ In addition to the basic financial statements and accompanying notes, required
supplementary information includes information on the County’s Pension Plan, OPEB Plan, and budgetary comparison
schedules.
Other Supplementary Information‐includes the combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajor enterprise funds, internal service funds, nonmajor component units and the fiduciary
combining statements.
MANAGEMENT’S DISCUSSION AND ANALYSIS
11
GOVERNMENT‐WIDE FINANCIAL ANALYSIS
Over time net position serves as a useful indicator of a government’s financial condition. In the case of the County,
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.0 billion at the
close of the fiscal year.
All dollar amounts in the following charts and analytics are expressed in thousands unless stated otherwise.
Summary of Net Position
June 30, 2022
(Dollars in Thousands)
Total
Governmental Activities Business‐Type Activities Total Dollar Percent
2022 2021 (1)2022 2021 (2)2022 2021 (1) Change Change
Assets:
Current and other assets 1,248,482$ 1,089,913$ 139,646$ 116,608$ 1,388,128$ 1,206,521$ 181,607$ 15.1%
Capital assets, net of
depreciation 1,509,311 1,488,259 175,278 166,807 1,684,589 1,655,066 29,523 1.8%
Total assets 2,757,793 2,578,172 314,924 283,415 3,072,717 2,861,587 211,130 7.4%
Deferred outflows of resources 213,989 113,375 2,384 2,021 216,373 115,396 100,977 87.5%
Liabilities:
Current and other liabilities 284,085 262,786 15,126 13,411 299,211 276,197 23,014 8.3%
Long‐term liabilities 574,509 825,242 49,610 53,763 624,119 879,005 (254,886) (29.0%)
Total liabilities 858,594 1,088,028 64,736 67,174 923,330 1,155,202 (231,872) (20.1%)
Deferred inflows of resources 366,866 112,091 44,438 35,323 411,304 147,414 263,890 (41.6%)
Net position:
Net investment in capital
assets 1,397,357 1,359,263 158,458 149,102 1,555,815 1,508,365 47,450 3.1%
Restricted 423,220 351,841 23,452 20,640 446,672 372,481 74,191 19.9%
Unrestricted (74,255) (219,676) 26,224 13,197 (48,031) (206,479) 158,448 76.7%
Total net position 1,746,322$ 1,491,428$ 208,134$ 182,939$ 1,954,456$ 1,674,367$ 280,089$ 16.7%
(1) The FY 2021 assets, liabilities, and deferred inflows of resources were restated due to the implementation of GASB 87. See Notes 5 and 20.
Analysis of Net Position
The County’s total net position increased 16.7% in the current fiscal year. Changes in the County’s net position are
described below.
Net Investment in Capital Assets
The largest portion of the County’s net position is net investment in capital assets (e.g. land, buildings, roads, bridges,
machinery, equipment, and intangible assets), less the outstanding debt used to acquire those assets. The County uses
these capital assets to provide services to citizens; as such, these assets are not available for future spending. Although
the County’s investment in capital assets is reported net of related debt, the resources needed to repay this debt must
be obtained from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
The County’s net investment in capital assets was $1.6 billion at fiscal year‐end and consists of investment in capital
assets (net of accumulated depreciation) of $1.7 billion less related debt, an increase of $47.5 million, or 3.1%.
COUNTY OF SONOMA, CALIFORNIA
12
Restricted Net Position
Restricted net position of $446.7 million represents resources that are subject to external restrictions on their use, or
by enabling legislation.
Restricted net position increased $74.2 million or 19.9%. The primary changes to restricted net position, by function,
include:
Health services increased $45.4 million primarily due to a combination of increased revenue in Health and
Mental Health Realignment funds, Measure O revenue (mainly from sales tax and vehicle license fees),
Mental Health Services Act funding, and Behavioral Health Stabilization Fund, along with mobile support
expansion programs yet to be executed, and lower salaries and benefits from unfilled positions (especially in
Mental Health Realignment fund)
Public protection increased by $10.2 million due to increases in Sheriff and Probation realignment revenues
related to Community Correction Partnership and one‐time state prepayment for Gleason Beach Cleanup
Project
Public assistance increased $15.0 million primarily due to 1991 realignment additional funding and increased
Human Services revenue
Refuse contractual agreement increased $1.2 million mainly from amount collected for landfill agreement
between county and cities
Airport facility charges increased $1.2 million due to higher fee collection from increased airport traffic
Unrestricted Net Position
The County’s prior year unrestricted net position deficit of $206.5 million was reduced by $158.5 million to a deficit of
$48.0 million. The majority of the deficit is due to deferred amounts related to pension and OPEB.
MANAGEMENT’S DISCUSSION AND ANALYSIS
13
Analysis of Primary Government
Change in net position (net revenue), of the Primary Government (Governmental and Business‐Type Activities)
decreased 37.2% to $280.1 million from $446.1 million in prior year.
Changes in Net Position
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Total
Governmental Activities Business‐Type Activities Total Dollar Percent
2022 2021 2022 2021 2022 2021 Change Change
Revenues:
Program revenues:
Charges for services 111,172$ 108,825$ 30,719$ 25,385$ 141,891$ 134,210$ 7,681$ 5.7%
Operating grants and contributions 651,763 633,524 23,639 21,099 675,402 654,623 20,779 3.2%
Capital grants and contributions 4,635 3,681 18,753 6,195 23,388 9,876 13,512 136.8%
General revenues:
Property taxes 304,492 290,134 ‐ ‐ 304,492 290,134 14,358 4.9%
Documentary transfer taxes 9,378 9,071 ‐ ‐ 9,378 9,071 307 3.4%
Transient occupancy taxes 32,830 24,289 ‐ ‐ 32,830 24,289 8,541 35.2%
Grants and other unrestricted
governmental revenues 95,805 66,463 ‐ ‐ 95,805 66,463 29,342 44.1%
Unrestricted investment earnings (23,419) 7,304 (1,980) 264 (25,399) 7,568 (32,967) (435.6%)
Other 51,793 217,255 2,960 1,285 54,753 218,540 (163,787) (74.9%)
Total operating revenues 1,238,449 1,360,546 74,091 54,228 1,312,540 1,414,774 (102,234) (7.2%)
Expenses:
General government 188,199 174,850 ‐ ‐ 188,199 174,850 13,349 7.6%
Public protection 324,378 315,399 ‐ ‐ 324,378 315,399 8,979 2.8%
Public ways and facilities 42,276 41,555 ‐ ‐ 42,276 41,555 721 1.7%
Health and sanitation 150,633 126,113 ‐ ‐ 150,633 126,113 24,520 19.4%
Public assistance 222,131 211,766 ‐ ‐ 222,131 211,766 10,365 4.9%
Education 1,049 1,047 ‐ ‐ 1,049 1,047 2 0.2%
Recreation and cultural services 33,273 28,821 ‐ ‐ 33,273 28,821 4,452 15.4%
Interest on long‐term debt 19,365 21,752 ‐ ‐ 19,365 21,752 (2,387) (11.0%)
Refuse ‐ ‐ 5,968 5,500 5,968 5,500 468 8.5%
Airport ‐ ‐ 12,342 11,028 12,342 11,028 1,314 11.9%
Energy Independence Program ‐ ‐ 2,056 2,417 2,056 2,417 (361) (14.9%)
Transit ‐ ‐ 20,387 18,505 20,387 18,505 1,882 10.2%
Fair ‐ ‐ 6,160 5,954 6,160 5,954 206 3.5%
Marinas ‐ ‐ 2,794 2,843 2,794 2,843 (49) (1.7%)
Other ‐ ‐ 1,440 1,104 1,440 1,104 336 30.4%
Total operating expenses 981,304 921,303 51,147 47,351 1,032,451 968,654 63,797 6.6%
Excess before transfers 257,145 439,243 22,944 6,877 280,089 446,120 (166,031) (37.2%)
Transfers (2,251) (1,365) 2,251 1,365 ‐ ‐ ‐ 0.0%
Change in net position 254,894 437,878 25,195 8,242 280,089 446,120 (166,031) (37.2%)
Net position, beginning of year 1,491,428 1,053,550 182,939 174,697 1,674,367 1,228,247 446,120 36.3%
Net position, end of year 1,746,322$ 1,491,428$ 208,134$ 182,939$ 1,954,456$ 1,674,367$ 280,089$ 16.7%
COUNTY OF SONOMA, CALIFORNIA
14
Analysis of Governmental Activities
Governmental activities increased the County’s net position $254.9 million and accounted for 91.0% of the County’s
total increase in net position from current year activities. Governmental activities operating revenues exceeded
operating expenses by $257.1 million. Transfers to business‐type activities decreased net position by $2.3 million.
Revenues:
Operating revenues for the County’s governmental activities decreased 9.0% from the prior year amount of $1.36
billion to $1.24 billion. Revenues are divided into two categories: program revenues and general revenues.
Program Revenues:
Program revenues increased $21.5 million or 2.9%, from the prior year to $767.6 million. The majority of program
revenues consist of charges for services and operating grants and contributions tied to federal and state
reimbursements of County costs for mandated programs such as public assistance, public protection, health and
behavioral wellness. Program revenues represent 62.0% of the County’s funding for governmental activities.
Operating grants and contributions increased by $18.2 million or 2.9% to $651.7 million due primarily to:
o Public protection increase of $13.7 million primarily related to increased State Prop 172 Public Safety
funds to Law Enforcement and Fire Services, and one‐time state prepayment for Gleason Beach
Cleanup Project
o Health and sanitation increase of $11.6 million primarily due to:
$8.0 million in 1991 Realignment from higher vehicle license fee and sale tax revenue
$2.0 million increase in Homeless Housing and Assistance (HHAP) state grant funding for
emergency shelter and street & youth outreach
$1.8 million increase in Disaster Funding mainly from Paycheck Protection Program and
Epidemiology and Laboratory Capacity grants
$1.6 million increase in COVID‐19 immunization grants
$0.8 million increase in Community Health Workers Public Health Response and Resiliency
grant
$3.0 decrease from intergovernmental state funding due to lower number of billable
months compared to prior year
o Public assistance increase of $6.4 million primarily due to:
$4.0 million increase in Realignment revenues from higher sales tax volume
$4.3 million increase in state funding reimbursements for cost‐of‐living adjustments and
additional staffing to fill vacant positions
$1.3 million increase in Welfare Programs related to increased case load
$3.9 million decrease from termination of the Title IV‐E Waiver fund in prior year
o Recreation and cultural services increase of $2.2 million mainly due to higher grant revenue from
state for wildfire prevention and forest management, and higher Sonoma Water revenue for Spring
Lake
o Public ways and facilities decrease of $10.3 million due to lower Caltrans project reimbursements as
less projects were under construction than prior year
o General government decrease of $5.4 million due in most part to discontinuation of Federal CARES
emergency funding, partially offset by new funding from American Rescue Plan and increased federal
fundings for 2020 LNU Fire and COVID‐19 Department of Health Services response
MANAGEMENT’S DISCUSSION AND ANALYSIS
15
General Revenues:
General revenues had an overall decrease of $143.6 million, or 23.4%, to $470.9 million from the prior year. These
revenues include general taxes that provide the Board of Supervisors with discretionary spending ability. The primary
reasons for the decrease are as follows:
Property tax revenue $14.4 million increase attributable to sustained growth in assessed values along with
higher supplemental assessments, growth in utilities roll, and restoration of fire affected parcels
Transient occupancy tax revenue increased $8.5 million due to continued relaxation of COVID‐19 travel
restrictions
Grants and other unrestricted revenues increased $29.3 million primarily due to increased sales and use tax
revenues, in particular from higher Measure O revenue in Health Services
Investment earnings (losses) decreased $30.7 million in total mostly due to higher unrealized investment
losses
Other general revenues decreased $165.5 million mostly from prior year revenue including the 2017 PG&E
Wildfire settlement of $149.3 million and the Kincade Fire settlement of $20.6 million
Expenses:
Total expenses for governmental activities increased $60.0 million from prior year to $981.3 million. The primary
reasons for the increase are as follows:
Health and sanitation expenses increased $24.5 million, or 19.4%, mainly due to:
o Higher salaries and benefits from COVID‐19 related labor costs, such as planning, testing, vaccination,
and community outreach
o Higher expenses primarily for mental health services at children’s shelters, residential crisis services,
adult inpatient hospital services, residential care facilities, transitional and permanent housing
programs from higher Measure O revenue
o Higher spending for contracted health workers and support services for increased COVID‐19 program
activities
o Increased expenses for youth and family services under behavioral health programs
o Cost settlement paybacks for FY12‐13 and FY13‐14 audits
General government expenses increased $13.3 million, or 7.6% due in most part to:
o Contribution from the PG&E 2017 Fire Settlement to the RED Housing Fund, a California nonprofit
public benefit corporation, to provide financing, credit enhancement, and/or guarantees to support
the development of housing projects within Sonoma County
o Payment to Sonoma County Transit Authority for road improvements per agreement with Graton
Rancheria
o Higher cost plan charges due to disaster costs
Public assistance expenses increased $10.4 million, or 4.9%, primarily due to:
o Increase in salary and benefits from filling vacant positions and cost‐of‐living adjustments
o Higher amortization expense due to new lease accounting standard implementation (GASB87)
o Increased depreciation expenses, especially under Behavioral Health
Public protection expenses increased $9.0 million, or 2.8% primarily due to:
o Higher salaries and benefits due to positions filled in Law Enforcement for new contracts and in Public
Defender with new state grant
o Higher amortization expense due to new lease accounting standard implementation (GASB87)
o Higher one‐time state‐mandated encryption project and higher detention facilities reimbursements
Recreation and cultural services expenses increased $4.5 million, or 15.4%, due to
o Increase in Regional Park operations, maintenance, and community engagement from increase in
park usage and programs
o Higher activities related to state grant for wildfire prevention and forest management
o Increase in maintenance, habitat restoration, and improvement projects in Ag + Open Space
COUNTY OF SONOMA, CALIFORNIA
16
Governmental Activities Comparisons
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Governmental Activities ‐Expenses and Program Revenues
Revenues Expenses
Charges for services
9.0%
Operating grants
and contributions
52.6%
Capital grants and
contributions
0.4%
Property taxes
24.6%
Grants and other governmental
revenue not restricted to specific
programs
7.7%
Other revenue, net of
investment losses
5.7%
Governmental Activities ‐Revenues by Source
MANAGEMENT’S DISCUSSION AND ANALYSIS
17
Business‐Type Activities Comparison
Business‐type activities net position increased by $25.2 million, from $182.9 million to $208.1 million for the year
ended June 30, 2022.
Revenues for the County’s business‐type activities had an increase from the prior year of $19.9 million or 36.6% to
$74.1 million.
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Business‐Type Activities ‐Expenses and Program Revenues
Revenues Expenses
Charges for services
41.5%
Operating grants
and contributions
31.9%
Capital grants and
contributions
25.3%
Other revenue, net of
investment losses
1.3%
Business‐Type Activities ‐Revenues by Source
COUNTY OF SONOMA, CALIFORNIA
18
Financial Analysis of the Government's Funds
As noted earlier, the County uses fund accounting to comply with finance‐related legal requirements.
Governmental Funds
The focus of the County's governmental funds is to provide information on near‐term inflows, outflows, and balances
of spendable resources. Such information is useful in assessing the County's financing requirements. In particular, total
fund balance less the nonspendable portion is a useful measure of a government’s resources available for spending at
the end of the fiscal year.
At June 30, 2022, the County's governmental funds reported combined fund balances of $869.7 million, an increase of
$84.9 million compared to fiscal year 2021. The components of fund balance are as follows, and with the exception of
nonspendable fund balance, are available for appropriation at any time (See Note 19 – Net Position/Fund Balances):
Nonspendable fund balance, $13.2 million, consists of amounts that are not spendable in form or are legally
or contractually required to be maintained intact and primarily consists of inventories of $0.9 million , prepaid
items and deposits of $8.5 million and advances of $3.8 million.
Restricted fund balance, $435.0 million, consists of amounts with constraints put on their use by externally
imposed creditors, grantors, laws, regulations and enabling legislation with amounts restricted to:
o Agricultural Preservation and Open Space District ‐ $74.9 million
o Capital projects and equipment replacement ‐ $41.7 million
o Debt service ‐ $10.5 million
o Parks donations, mitigation, and operations ‐ $10.0 million
o Courthouse/Criminal Justice Construction ‐ $2.0 million
o Health services programs ‐ $157.8 million
o Fire and emergency services ‐ $1.9 million
o Public assistance ‐ $52.1 million
o Lighting districts ‐ $10.4 million
o Public protection ‐ $66.0 million
o Clerk, Recorder, Assessor operations ‐ $5.6 million
o Other ‐ $2.1 million
Committed fund balance, $34.6 million, consists of amounts that have been committed to specific purposes
by the Board of Supervisors and consists of amounts committed to:
o Community investment ‐ $19.2 million
o Road activities and other ‐ $15.4 million
Assigned fund balance, $319.6 million, represents amounts intended for use as determined by the Board of
Supervisors and County Administrator’s Office consists of amounts assigned to:
o Capital projects and equipment replacement ‐ $135.0 million
o Tribal development impact mitigation ‐ $27.4 million
o Redevelopment agencies ‐ $6.6 million
o General services ‐ $8.9 million
o Public protection ‐ $13.2 million
o Encumbrances ‐ $13.1 million
o Fire Settlement projects ‐ $45.5 million
o Projected budget deficit ‐ $34.8 million
o Cannabis program ‐ $5.6 million
o Other programs ‐ $29.5 million
MANAGEMENT’S DISCUSSION AND ANALYSIS
19
Unassigned fund balance of $67.3 million represents the residual classification for the General Fund
Approximately 98.5%, or $856.4 million, of the total fund balance is available to the County.
General Fund
The General Fund is the main operating fund of the County. The General Fund’s total fund balance decreased by 25.6%,
or $96.3 million, to $279.9 million at June 30, 2022. The nonspendable portion of fund balance was $9.1 million. The
spendable portion was $270.8 million, a decrease of $97.0 million, or 26.4%, over the prior year balance of $367.8
million. This decrease is mainly due to:
A decrease of $101.6 million from Fire Settlements fund transfers to departments for executing designated
initiatives
A decrease of $10.2 million primarily due to transfer of Chanate Campus sales proceeds to capital project
deferred maintenance
A decrease of $5.8 million from payment to Sonoma County Transit Authority for road improvements per
agreement with Graton Rancheria
A decrease of $4.9 million from cost plan charges due to disaster costs
A fund balance increase of $26.6 million for projected budget deficits from savings of prior year and current
year initiatives
Other ‐ Governmental Funds
As compared with the prior year, the total fund balances of the remaining governmental funds increased 44.3%, or
$181.2 million, to $589.8 million with the following significant changes:
Human Services fund balance increased $8.9 million, from $33.8 to $42.7 million primarily due to higher
revenue from sales tax and vehicle license fee and state funding draw down from COLAs and filling vacant
positions, along with transfer of realignment fund to operating fund
Health and Sanitation fund balance increased $42.1 million, from $106.3 to $148.5 million primarily due to
increase revenue in Health and Mental Health Realignment funds, Measure O revenue (mainly from sales
tax and vehicle license fees), and Mental Health Services Act funding, higher General Fund transfer for
mobile support expansion programs yet to be executed, and lower salaries and benefits from unfilled
positions (especially in Mental Health Realignment fund)
Open Space Special Tax Account increased $10.9 million, from $60.5 to $71.4 million primarily from increased
Measure F sales tax allocations and capital asset acquisition transfers
Community Investment fund balance increased $8.0 million, from $11.2 to $19.2 million due to increase in
transient occupancy taxes collected resulting from continued relaxation of COVD‐19 travel restrictions
Roads fund balance increased $40.3 million, from $25.4 to $65.7 million primarily due to various construction
projects initiated during the year from the PG&E Fire Settlement
Capital Projects fund balance increased $50.1 million, from $18.4 to $68.5 million primarily due to funding
spent on the following capital projects:
o American Rescue Plan Act (ARPA) funding for replacing public health and morgue facilities currently
leasing from Chanate Campus
o Unspent general fund allocations and Chanate Campus sale proceeds for county‐wide deferred
maintenance
Mandated funds increased $4.9 million due primarily to one‐time state prepayment for Gleason Beach
Cleanup Project
2011 Realignment increased $16.1 million, from $45.2 to $61.3 million primarily due to:
o Behavioral Health realignment unspent revenue
o Higher Community Correction Partnership revenue
Special Districts decreased $2.6 million, from $24.3 to $21.7 million primarily due to increased Fire Services
capital outlay and higher spending for In‐Home Supportive and Roads
COUNTY OF SONOMA, CALIFORNIA
20
Proprietary Funds
The County's proprietary funds provide the same type of information found in the government‐wide financial
statements, but in more detail. County enterprise activities increased net position by $25.2 million in the current year
mostly due to:
Airport net position increased $23.5 million, primarily related to increases in rent/concession revenue and
FAA and CARES Act Grant funding
Fair net position increased $3.8 million, mainly related to increases in rent and concessions as well as PPP
Loan forgiveness and Target Support Program funding
Transit net position decreased $3.0 million, in most part due to the depreciation of assets
Current year activities of the internal service funds (ISF) increased the net position of the ISF $136.2 million primarily
due to the following:
Employee retirement fund net position increased $111.1 million primarily as a result of a favorable return
on the market value of assets during calendar year 2021 that was greater than the assumed rate of return
Other Postemployment Benefits (OPEB) net position increased by $23.6 million, the majority due to fund
investment performance
General Fund Budgetary Highlights
The County’s final budget appropriations for General Fund expenditures increased $137.6 million over the original
budget, or 26.9%; primarily due to implementation of the ARPA expenditure plan, Board approved increases related
to COVID‐19 response, grants and contributions made from the 2017 PG&E Settlement fund, appropriation for new
accounting standard implementation (GASB87), and other operational adjustments.
Revenues:
General Fund actual revenues were $2.9 million less than final budget revenue estimates. The main reasons are as
follows:
Intergovernmental revenue was $9.7 million lower due to delay of FEMA reimbursements for disaster
fundings
Use of money and property was $9.6 million lower due to higher unrealized investment losses
Charges for services was $2.3 million less primarily due to:
o Lower Fleet Heavy Equipment revenue due to staffing shortages and supply chain issues impacting
delivery of services
o Lower PRMD project review revenue due to no environmental review contract work and a reduction
in billable pass‐through activities in labor and third‐party contracts
Tax revenues were higher by $18.3 million over budget primarily due to growth in real property assessed
value and higher supplemental assessments, growth in utilities roll, and restoration of fire affected parcels
Expenditures:
General Fund variance between the final budget and actual expenditures resulted in $91.4 million of unspent
appropriations. Key variances are as follows:
$62.0 million savings in General Government expenditures related to:
o Disaster Recovery spending came in lower as budget was based on COVID‐19 uncertainties and actual
outlay were lower due to better‐than‐anticipated conditions
o Budget assumptions for contingencies and disaster response did not materialize
$43.1 million savings in Public Protection primarily related to delays in both recruitment/hiring and project
executions in Law Enforcement, Probation, Detention, PRMD, and Emergency Services areas.
MANAGEMENT’S DISCUSSION AND ANALYSIS
21
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The County's capital assets for its governmental and business‐type activities as of June 30, 2022, were $1.7 billion.
Capital assets include land, intangible assets, buildings and improvements, machinery and equipment, park facilities,
roads, highways, and bridges. The total net increase in the County's capital assets for the current fiscal year was $29.5
million or 1.8%.
Capital Assets (net of depreciation)
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Total
Governmental Activities Business‐Type Activities Total Dollar Percent
2022 2021 (1)2022 2021 (1)2022 2021 (1) Change Change
Capital assets, non‐depreciable:
Land 351,407$ 365,201$ 27,718$ 27,724$ 379,125$ 392,925$ (13,800)$ (3.5%)
Intangible assets 417,381 402,549 ‐ ‐ 417,381 402,549 14,832 3.7%
Work in progress 5,380 6,874 ‐ ‐ 5,380 6,874 (1,494) (21.7%)
Construction in progress 127,975 121,520 23,651 7,473 151,626 128,993 22,633 17.5%
Total capital assets, non‐
depreciable 902,143 896,144 51,369 35,197 953,512 931,341 22,171 2.4%
Capital assets, depreciable:
Intangible assets 12,012 14,295 2,887 3,388 14,899 17,683 (2,784) (15.7%)
Infrastructure 200,186 176,994 10,974 11,496 211,160 188,490 22,670 12.0%
Buildings and improvements 268,273 268,113 97,523 103,061 365,796 371,174 (5,378) (1.4%)
Land improvements 10,337 8,085 158 173 10,495 8,258 2,237 27.1%
Machinery and equipment 33,283 33,037 12,367 13,492 45,650 46,529 (879) (1.9%)
Right‐to‐use leased building 80,806 89,097 ‐ ‐ 80,806 89,097 (8,291) (9.3%)
Right‐to‐use leased land 2,271 2,494 ‐ ‐ 2,271 2,494 (223) (8.9%)
Total capital assets,
depreciable 607,168 592,115 123,909 131,610 731,077 723,725 7,352 1.0%
Total 1,509,311$ 1,488,259$ 175,278$ 166,807$ 1,684,589$ 1,655,066$ 29,523$ 1.8%
(1) The FY 2021 right‐to‐use leased building and land balances were restated due to the implementation of GASB 87. See Notes 5 and 20.
Capital asset activities during the current fiscal year included the following:
Non‐depreciable intangible assets for governmental activities increased $14.8 million primarily due to easement
acquisitions and reclassifying assets previously recorded as land by the Open Space District. This activity was largely
responsible for the reduction in land of $13.8 million.
The County purchases and constructs capital assets throughout the year. When a capital project will be completed in
a subsequent fiscal year, related current year expenditures are recorded as construction in progress (CIP) or work in
progress (WIP). In the year of completion, a project’s CIP/WIP is allocated to the appropriate capital asset category.
Total CIP increased $22.6 million. Capital outlay of $75.6 million was offset by project completions, transfers, and
retirements of $53.1 million.
The County completed and capitalized CIP projects totaling approximately $48.8 million. Major and other completed
projects include:
2021 Pavement Preservation Program – 49 different road segments $15.1 million
Boyes Blvd at Sonoma Creek Bridge $9.3 million
January and February 2017 storm repair Geysers Road & Cazadero Highway $5.2 million
Health Services, Los Guilicos Homeless Shelter $4.2 million
COUNTY OF SONOMA, CALIFORNIA
22
Regional Parks, Westside Boat Launch $2.3 million
Regional Parks, Doran Boat Launch $1.6 million
Regional Parks, Taylor Mountain (new park) $1.6 million
Stoney Point Road improvements $1.5 million
Penngrove railroad safety improvements $1.4 million
Behavioral Health relocation $1.2 million
The County acquired an additional $10.7 million in depreciable assets and recorded total depreciation of $58.3 million
against all depreciable capital assets. Capital asset disposals totaled $5.2 million net of accumulated depreciation.
Additional information on capital assets is available in the Notes to the Basic Financial Statements, Note 5 – Capital
Assets.
Debt Administration
At the end of the current fiscal year, the County had total long‐term liabilities of $732.6 million.
Long Term Liabilities
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Total
Governmental Activities Business‐Type Activities Total Dollar Percent
2022 2021(1)2022 2021(1)2022 2021(1) Change Change
Compensated absences 40,446$ 40,763$ 594$ 616$ 41,040$ 41,379$ (339)$ (0.8%)
Self‐Insurance 60,627 56,790 ‐ ‐ 60,627 56,790 3,837 6.8%
Certificates of participation 9,189 11,252 ‐ ‐ 9,189 11,252 (2,063) (18.3%)
Bonds and bond premium
payable 82,408 93,287 23,695 23,356 106,103 116,643 (10,540) (9.0%)
Pension obligation bonds 247,880 286,690 ‐ ‐ 247,880 286,690 (38,810) (13.5%)
Notes payable ‐ 840 477 996 477 1,836 (1,359) (74.0%)
Loans payable ‐ ‐ 15,683 16,150 15,683 16,150 (467) (2.9%)
Other Long‐term obligations 6,217 7,352 9,031 10,258 15,248 17,610 (2,362) (13.4%)
Lease liabilities 84,892 91,591 ‐ 84,892 91,591 (6,699) (7.3%)
Net pension liability ‐ 152,944 728 2,672 728 155,616 (154,888) (99.5%)
Net OPEB liability 148,184 184,512 2,532 3,330 150,716 187,842 (37,126) (19.8%)
Total 679,843$ 926,021$ 52,740$ 57,378$ 732,583$ 983,399$ (250,816)$ (25.5%)
(1) The FY 2021 Lease liabilities balance was restated due to the implementation of GASB 87. See Notes 5 and 20.
Long‐term liabilities decreased by $250.8 million, or 25.5%, during the current fiscal year ended June 30, 2022.
The decrease was primarily due to the following:
Net pension liability decrease of $154.9 million, due to favorable returns on investments at Sonoma County
Employee’s Retirement Association (SCERA)
Pension obligation bonds decrease of $38.8 million, due to scheduled principal payments
Net OPEB liability decrease of $37.1 million, due to fund investment performance
Additional information on long‐term liabilities is available in the Notes to the Basic Financial Statements, Note 10 –
Long‐Term Liabilities.
MANAGEMENT’S DISCUSSION AND ANALYSIS
23
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
During fiscal year 2021‐22 Sonoma County saw positive trends in the economy led by increased consumer spending,
increased real estate values, increased tourism, and decreased unemployment. For fiscal year 2022‐23 revenues are
growing at a rate largely matching cost increases but increasing demand for County services and increases in inflation
and interest rates, have potential to offset recent positive trends and affect public services provided by the County.
Requests for Information
As part of management’s commitment to transparency, open government, and citizen engagement, a budget tool is
available to facilitate the public’s review of the County’s budget. The Sonoma County Budget link is
https://sonomacounty.ca.gov/administrative‐support‐and‐fiscal‐services/county‐administrators‐office/budget‐and‐
operations/budget‐reports
BASIC FINANCIAL STATEMENTS
COUNTY OF SONOMA, CALIFORNIA
Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Primary Government Discrete Component Units
Governmental
Activities
Business-
Type Activities Total
Sonoma
Water
Community
Development
Commission
Nonmajor
Component
Units
ASSETS
Cash and investments 987,016$ 67,365$ 1,054,381$ 171,470$ 26,584$ 34,633$
Restricted cash and investments 11,495 18,275 29,770 34,711 1,078 6,134
Receivables, net 27,590 27,005 54,595 21,953 109,814 1,388
Inventories 855 1,005 1,860 - - -
Due from other governments 144,001 16,696 160,697 - - 767
Advances to other governments - 17 17 - - -
Lease receivables 5,971 8,024 13,995 - - -
Prepaid expenses and deposits 9,164 782 9,946 2,498 258 1
Net pension assets 62,270 597 62,867 5,211 628 -
Internal balances 120 (120) - - - -
Capital assets:
Nondepreciable 902,143 51,369 953,512 155,404 7,192 13,707
Depreciable, net 607,168 123,909 731,077 187,019 14,511 109,825
Total assets 2,757,793 314,924 3,072,717 578,266 160,065 166,455
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding/other 1,659 - 1,659 223 - 56
Deferred amounts related to pensions 181,776 1,756 183,532 12,281 1,324 -
Deferred amounts related to OPEB 30,554 628 31,182 2,808 396 -
Total deferred outflows of resources 213,989 2,384 216,373 15,312 1,720 56
LIABILITIES
Accounts payable and accrued liabilities 75,843 6,776 82,619 8,272 5,334 2,270
Due to other governments 10,439 1,950 12,389 493 537 -
Advances from grantors and third parties 82,136 1,621 83,757 - - -
Deposits from others 1,964 288 2,252 19 - -
Interest payable 1,824 444 2,268 2,014 - 234
Other liabilities 6,545 917 7,462 7,055 80 -
Long-term liabilities:
Due within one year 105,334 3,130 108,464 8,672 476 2,622
Due in more than one year 574,509 49,610 624,119 134,895 1,761 16,376
Total liabilities 858,594 64,736 923,330 161,420 8,188 21,502
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to leases 5,911 7,956 13,867 - - -
Service concession arrangement/other 203 31,978 32,181 142 - -
Deferred amounts related to pensions 325,697 3,685 329,382 26,191 3,246 -
Deferred amounts related to OPEB 35,055 819 35,874 3,264 782 -
Total deferred inflows of resources 366,866 44,438 411,304 29,597 4,028 -
See accompanying notes to the basic financial statements
25
COUNTY OF SONOMA, CALIFORNIA
Statement of Net Position (Continued)
June 30, 2022
(Dollars in Thousands)
Primary Government Discrete Component Units
Governmental
Activities
Business-
Type Activities Total
Sonoma
Water
Community
Development
Commission
Nonmajor
Component
Units
NET POSITION
Net investment in capital assets 1,397,357 158,458 1,555,815 232,061 21,212 107,698
Restricted:
Capital projects 29,856 - 29,856 - - -
Debt service 10,465 - 10,465 - - -
Agricultural preservation and open spaces 74,886 - 74,886 - - -
Health services programs 157,837 - 157,837 - - -
Public protection 65,961 - 65,961 - - -
Public assistance 52,122 - 52,122 - - -
Parks donations, mitigation and operations 9,980 - 9,980 - - -
Lighting districts 10,450 - 10,450 - - -
Fire and emergency services 1,914 - 1,914 - - -
Courthouse/Criminal Justice Construction 2,012 - 2,012 - - -
Clerk, Recorder, Assessor operations 5,627 - 5,627 - - -
Other programs 2,110 188 2,298 - - -
Airport Passenger Facility Charges - 3,087 3,087 - - -
Airport Customer Facility Charges - 504 504 - - -
Refuse contractual commitments - 18,090 18,090 - - -
Fair junior livestock auction - 159 159 - - -
Fair for capital asset maintenance - 121 121 - - -
Fair endowment - 1,303 1,303 - - -
Discrete Component Units - - - 94,729 1,092 4,879
Total restricted 423,220 23,452 446,672 94,729 1,092 4,879
Unrestricted (74,255) 26,224 (48,031) 75,771 127,265 32,432
Total net position 1,746,322$ 208,134$ 1,954,456$ 402,561$ 149,569$ 145,009$
See accompanying notes to the basic financial statements
26
COUNTY OF SONOMA, CALIFORNIA
Statement of Activities
For the Year Ended June 30, 2022
(Dollars in Thousands)
Program Revenues
Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants
and Contributions
FUNCTION/PROGRAM ACTIVITIES
Primary government:
Governmental activities:
General government 188,199$ 45,322$ 93,573$ 1,654$
Public protection 324,378 40,142 138,300 418
Public ways and facilities 42,276 5,379 34,421 -
Health and sanitation 150,633 11,299 153,831 35
Public assistance 222,131 1,618 226,212 256
Education 1,049 - 6 -
Recreation and cultural services 33,273 7,412 5,420 2,272
Interest on long-term debt 19,365 - - -
Total governmental activities 981,304 111,172 651,763 4,635
Business-type activities:
Refuse 5,968 7,407 - -
Airport 12,342 8,339 7,699 18,100
Energy Independence Program 2,056 1,619 - -
Transit 20,387 791 15,940 653
Fair 6,160 8,668 - -
Marinas 2,794 2,878 - -
Other 1,440 1,017 - -
Total business-type activities 51,147 30,719 23,639 18,753
Total primary government 1,032,451$ 141,891$ 675,402$ 23,388$
Discrete Component Units:
Sonoma Water 98,189$ 75,495$ 4,309$ 4,129$
Community Development Commission 107,756 - 110,452 -
Sonoma Valley Sanitation District 15,740 18,236 383 63
Russian River Sanitation District 6,274 5,711 - 1,298
South Park Sanitation District 3,358 4,551 55 -
Occidental Sanitation District 1,437 390 700 225
Total Discrete Component Units 232,754$ 104,383$ 115,899$ 5,715$
GENERAL REVENUES:
Taxes:
Property
Documentary transfer
Transient occupancy
Unrestricted investment earnings
Other
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
Grants and other governmental
revenue not restricted to specific programs
See accompanying notes to the basic financial statements
27
Net (Expense) Revenue and Changes in Net Position
Primary Government Discrete Component Units
Governmental
Activities
Business-
Type
Activities Total Sonoma Water
Community
Development
Commission
Nonmajor
Component
Units
FUNCTION/PROGRAM ACTIVITIES
Primary government:
Governmental activities:
(47,650)$ -$ (47,650)$ General government
(145,518) - (145,518) Public protection
(2,476) - (2,476) Public ways and facilities
14,532 - 14,532 Health and sanitation
5,955 - 5,955 Public assistance
(1,043) - (1,043) Education
(18,169) - (18,169) Recreation and cultural services
(19,365) - (19,365) Interest on long-term debt
(213,734) - (213,734) Total governmental activities
Business-type activities:
- 1,439 1,439 Refuse
- 21,796 21,796 Airport
- (437) (437) Energy Independence Program
- (3,003) (3,003) Transit
- 2,508 2,508 Fair
- 84 84 Marinas
- (423) (423) Other
- 21,964 21,964 Total business-type activities
(213,734) 21,964 (191,770) Total primary government
Discrete Component Units:
(14,256)$ -$ -$ Sonoma Water
- 2,696 - Community Development Commission
- - 2,942 Sonoma Valley Sanitation District
- - 735 Russian River Sanitation District
- - 1,248 South Park Sanitation District
- - (122) Occidental Sanitation District
(14,256) 2,696 4,803 Total Discrete Component Units
GENERAL REVENUES:
Taxes:
304,492 - 304,492 23,553 - - Property
9,378 - 9,378 11,431 - - Documentary transfer
32,830 - 32,830 - - - Transient occupancy
95,805 - 95,805 - - -
Grants and other governmental
revenue not restricted to specific programs
(23,419) (1,980) (25,399) (5,169) 190 (1,076) Unrestricted investment earnings
51,793 2,960 54,753 - 4,069 - Other
(2,251) 2,251 - - - - Transfers
468,628 3,231 471,859 29,815 4,259 (1,076) Total general revenues and transfers
254,894 25,195 280,089 15,559 6,955 3,727 Change in net position
1,491,428 182,939 1,674,367 387,002 142,614 141,282 Net position, beginning of year
1,746,322$ 208,134$ 1,954,456$ 402,561$ 149,569$ 145,009$ Net position, end of year
See accompanying notes to the basic financial statements
28
COUNTY OF SONOMA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2022
(Dollars in Thousands)
General
Fund
Human
Services
Special
Revenue
Health and
Sanitation
Special
Revenue
Open Space
Special Tax
Account
Special
Revenue Other Funds Total
ASSETS
Assets:
Cash and investments 335,944$ 22,086$ 135,714$ 66,432$ 304,941$ 865,117$
Cash and investments with trustee 32 - - - 10,466 10,498
Accounts receivable 14,118 54 1,915 4,950 5,870 26,907
Due from other funds 2,214 995 - - - 3,209
Inventories 149 - - - 706 855
Due from other governments 53,952 23,938 50,395 - 15,665 143,950
Advances to other funds 3,800 - - - - 3,800
Lease receivables 5,810 - - - 161 5,971
Prepaid items and deposits 5,125 3,225 7 - 465 8,822
Total assets 421,144$ 50,298$ 188,031$ 71,382$ 338,274$ 1,069,129$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued salaries and
benefits 43,512$ 1,187$ 19,301$ -$ 7,352$ 71,352$
Due to other funds 1 466 - - 1,286 1,753
Due to other governments 5,617 1,728 2,105 - 989 10,439
Advances from grantors and third parties 70,307 3,976 7,708 - 145 82,136
Deposits from others 1,954 - - - 10 1,964
Compensated absences 2,042 72 - - 9 2,123
Other liabilities 294 - 2,814 - 616 3,724
Total liabilities 123,727 7,429 31,928 - 10,407 173,491
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to leases 5,752 - - - 159 5,911
Government-mandated transactions 86 117 - - - 203
Unavailable revenue 11,709 29 7,594 - 486 19,818
Total deferred inflows of resources 17,547 146 7,594 - 645 25,932
FUND BALANCES
Nonspendable 9,074 3,225 7 - 915 13,221
Restricted 889 39,498 148,502 71,382 174,748 435,019
Committed 153 - - - 34,481 34,634
Assigned 202,488 - - - 117,078 319,566
Unassigned 67,266 - - - - 67,266
Total fund balances 279,870 42,723 148,509 71,382 327,222 869,706
Total liabilities, deferred inflows of
resources, and fund balances 421,144$ 50,298$ 188,031$ 71,382$ 338,274$ 1,069,129$
See accompanying notes to the basic financial statements
29
COUNTY OF SONOMA, CALIFORNIA
Reconciliation of the Balance Sheet to Statement of Net Position
Governmental Funds
June 30, 2022
(Dollars in Thousands)
Fund balances - total governmental funds 869,706$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the governmental funds. This amount represents capital assets net of accumulated
depreciation/amortization 1,498,968
Certain amounts are not available to pay current period expenditures and therefore are not
reported in the governmental funds
Deferred charge on refunding 1,659
Deferred amounts related to pensions (1,367)
Deferred amounts related to OPEB 121
Net pension asset 497
Certain amounts are not available to pay current period expenditures and therefore are deferred
inflows of resources in the governmental funds 19,818
Internal service funds are used by management to charge the costs of other activities to individual
funds. The assets, deferred outflows, liabilities, and deferred inflows of certain funds are included
as governmental activities in the statement of net position (421,240)
Long-term liabilities are not due and payable in the current period and therefore are not reported
in the governmental funds
Accrued interest payable (606)
Compensated absences (37,736)
Contracts payable (3,310)
Lease liability (84,460)
Bonds payable (73,631)
Bond premium (8,777)
Certificates of participation (9,189)
Net OPEB liability (1,224)
Financed purchases (2,907) (221,840)
Net position of governmental activities 1,746,322$
See accompanying notes to the basic financial statements
30
COUNTY OF SONOMA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2022
(Dollars in Thousands)
General
Fund
Human
Services
Special
Revenue
Health and
Sanitation
Special
Revenue
Open Space
Special Tax
Account
Special
Revenue Other Funds Total
Revenues:
Taxes 346,578$ -$ 25,098$ 31,880$ 38,949$ 442,505$
Licenses, permits and franchise fees 22,403 69 7,594 - 4,266 34,332
Fines, forfeitures and penalties 8,965 49 890 - 3,963 13,867
Use of money and property (4,118) (988) (3,493) (2,108) (8,901) (19,608)
Intergovernmental 183,234 195,013 143,482 - 134,669 656,398
Charges for services 50,029 1,501 3,671 - 7,772 62,973
Other 6,533 13,354 6,385 - 24,631 50,903
Total revenues 613,624 208,998 183,627 29,772 205,349 1,241,370
Expenditures:
Current:
General government 198,952 - - - 10,539 209,491
Public protection 303,127 - 5,556 - 58,150 366,833
Public ways and facilities 186 - - - 34,062 34,248
Health and sanitation - - 159,391 - 10,363 169,754
Public assistance 355 222,610 - - 28,942 251,907
Education 1,173 - - - - 1,173
Recreation and cultural services 26,651 - - - 9,880 36,531
Capital outlay 9,513 700 1,781 - 59,272 71,266
Debt service:
Principal 3,785 4,297 2,868 - 10,593 21,543
Interest and other 566 482 694 - 2,925 4,667
Total expenditures 544,308 228,089 170,290 - 224,726 1,167,413
Excess (deficiency) of revenues over
(under) expenditures 69,316 (19,091) 13,337 29,772 (19,377) 73,957
Other financing sources (uses):
Transfers in 18,675 28,549 28,071 - 166,271 241,566
Transfers out (198,462) (566) (3,173) (18,876) (27,632) (248,709)
Lease inception 1,152 - 894 - - 2,046
Sale of capital assets 12,976 - 3,015 - 7 15,998
Total other financing sources (uses)(165,659) 27,983 28,807 (18,876) 138,646 10,901
Net change in fund balances (96,343) 8,892 42,144 10,896 119,269 84,858
Fund balances, beginning of year 376,213 33,831 106,365 60,486 207,953 784,848
Fund balances, end of year 279,870$ 42,723$ 148,509$ 71,382$ 327,222$ 869,706$
See accompanying notes to the basic financial statements
31
COUNTY OF SONOMA, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
For the Year Ended June 30, 2022
(Dollars in Thousands)
Net change in fund balances - total governmental funds:84,858$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of
activities, the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense
Capital outlay 71,266
Depreciation expense (46,294)
Other related capital adjustments (2,501) 22,471
The statement of activities reports gains or losses from the sale of capital assets as the difference
between the proceeds from sale of capital assets and the book value of the sold capital assets,
while the governmental funds report the proceeds from sale of capital assets. The difference is
the book value of the sold capital assets (11,291)
Donations of capital assets increase net position in the statement of activities but do not appear
in the governmental funds because they are not financial resources 582
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in governmental funds 708
Issuance of long-term debt provides current financial resources to governmental funds.
Repayment of debt principal is an expenditure in the governmental funds. Neither has any effect
on net position. Also, governmental funds report the effect of premiums when debt is issued,
whereas these amounts are deferred and amortized in the statement of activities
Principal repayments 21,543
Lease inception (2,046)
Amortization of bond premium 615 20,112
Some expenses reported in the statement of activities do not require the use of current financial
resources and therefore are not reported as expenditures in governmental funds
Change in accrued interest 25
Change in compensated absences 569
Change in net pension liability 447
Change in net OPEB liability 158 1,199
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue (expense) of internal service funds is reported with
governmental activities 136,255
Change in net position of governmental activities 254,894$
See accompanying notes to the basic financial statements
32
COUNTY OF SONOMA, CALIFORNIA
Statement of Net Position
Proprietary Funds
June 30, 2022
(Dollars in Thousands)
Business-Type Activities-Enterprise Funds
Governmental
Activities
Refuse Airport
Energy
Independence
Program Transit Other Total
Internal Service
Funds
ASSETS
Current assets:
Cash and investments 56,352$ 3,965$ 2,052$ 1,451$ 3,545$ 67,365$ 121,899$
Cash and investments with trustee - - - - 6,820 6,820 997
Restricted cash and investments - - - - 1,621 1,621 -
Receivables, net
Accounts 1,367 853 329 94 1,166 3,809 683
Loans - 57 - - - 57 -
Contractual assessments receivable - - 801 - - 801 -
Interest and other - 14 - - - 14 -
Due from other funds 1 - - - - 1 200
Inventories - - - 903 102 1,005 -
Due from other governments 18 13,913 - 2,713 52 16,696 51
Advances to other governments - - - - 17 17 -
Lease receivable 40 335 - - - 375 -
Prepaid expenses and deposits - 63 - 7 18 88 342
Total current assets 57,778 19,200 3,182 5,168 13,341 98,669 124,172
Noncurrent assets:
Restricted cash and investments 8,028 131 - 1,675 - 9,834 -
Lease receivable 302 7,347 - - - 7,649 -
Deposits and other assets 192 476 26 - - 694 -
Contractual assessments receivable - - 22,324 - - 22,324 -
Net pension asset 190 255 - 85 67 597 61,773
Capital assets:
Nondepreciable 2,544 41,374 - 3,391 4,060 51,369 783
Depreciable, net 12,256 78,383 181 17,508 15,581 123,909 9,560
Total noncurrent assets 23,512 127,966 22,531 22,659 19,708 216,376 72,116
Total assets 81,290 147,166 25,713 27,827 33,049 315,045 196,288
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts related to pensions 517 559 - 174 506 1,756 180,660
Deferred amounts related to OPEB 200 125 - 41 262 628 30,146
Total deferred outflows of resources 717 684 - 215 768 2,384 210,806
See accompanying notes to the basic financial statements
33
COUNTY OF SONOMA, CALIFORNIA
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2022
(Dollars in Thousands)
Business-Type Activities-Enterprise Funds
Governmental
Activities
Refuse Airport
Energy
Independence
Program Transit Other Total
Internal Service
Funds
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 350 3,733 322 1,395 976 6,776 4,491
Due to other funds - - 52 - 13 65 1,592
Due to other governments - - - 1,862 88 1,950 -
Advances from grantors and third parties - - - 1,621 - 1,621 -
Deposits from others - 19 - - 269 288 -
Interest payable - 232 188 - 24 444 1,218
Compensated absences 63 89 - 33 240 425 277
Advances from other governments - - - - 380 380 -
Self-funded insurance - - - - - - 13,389
Lease liability - - - - - - 90
Bonds payable - - 1,371 - - 1,371 42,935
Notes payable - - - - 477 477 -
Loans payable - 473 - - 4 477 -
Other liabilities - 13 269 339 296 917 2,821
Total current liabilities 413 4,559 2,202 5,250 2,767 15,191 66,813
Noncurrent portion of long-term liabilities:
Self-funded insurance - - - - - - 47,238
Compensated absences 70 60 - 39 - 169 310
Advances from other funds - - - - 56 56 3,744
Advances from other governments - - - - 887 887 -
Lease liability - - - - - - 342
Bonds payable - - 22,324 - - 22,324 204,945
Loans payable - 15,203 - - 3 15,206 -
Landfill closure and postclosure costs 7,764 - - - - 7,764 -
Net pension liabilities - - - - 728 728 -
Net OPEB liabilities 435 634 - 207 1,256 2,532 146,960
Total noncurrent liabilities 8,269 15,897 22,324 246 2,930 49,666 403,539
Total liabilities 8,682 20,456 24,526 5,496 5,697 64,857 470,352
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to leases 337 7,619 - - - 7,956 -
Service concession arrangement 31,978 - - - - 31,978 -
Deferred amounts related to pensions 951 1,277 - 429 1,028 3,685 323,214
Deferred amounts related to OPEB 102 205 - 138 374 819 34,768
Total deferred inflows of resources 33,368 9,101 - 567 1,402 44,438 357,982
NET POSITION
Net investment in capital assets 14,800 104,212 181 20,899 18,366 158,458 9,911
Restricted for passenger facility charges - 3,087 - - - 3,087 -
Restricted for customer facility charges - 504 - - - 504 -
Restricted for contractual commitments 18,090 - - - - 18,090 -
Restricted for junior livestock auction - - - - 159 159 -
Restricted for capital asset maintenance - - - - 121 121 -
Restricted for endowment - - - - 1,303 1,303 -
Restricted - other - - - - 188 188 -
Unrestricted 7,067 10,490 1,006 1,080 6,581 26,224 (431,151)
Total net position (deficit)39,957$ 118,293$ 1,187$ 21,979$ 26,718$ 208,134$ (421,240)$
See accompanying notes to the basic financial statements
34
COUNTY OF SONOMA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2022
(Dollars in Thousands)
Business-Type Activities-Enterprise Funds
Governmental
Activities
Refuse Airport
Energy
Independence
Program Transit Other Total
Internal
Service Funds
Operating revenues:
Charges for services 1,313$ 843$ 1,560$ 786$ 2,384$ 6,886$ 208,592$
Rents and concessions 6,730 7,198 - - 9,911 23,839 2,825
Sales and miscellaneous 10 323 59 - 268 660 4,290
Total operating revenues 8,053 8,364 1,619 786 12,563 31,385 215,707
Operating expenses:
Services and supplies 3,328 5,637 1,387 16,152 5,810 32,314 29,856
Salaries and employee benefits 1,487 2,425 - 683 3,363 7,958 13,926
Claim expenses - - - - - - 19,016
Depreciation and amortization 1,153 3,723 29 3,552 1,170 9,627 2,397
Total operating expenses 5,968 11,785 1,416 20,387 10,343 49,899 65,195
Operating income (loss)2,085 (3,421) 203 (19,601) 2,220 (18,514) 150,512
Nonoperating revenues (expenses):
Investment income (loss)(1,937) 50 (23) (78) 8 (1,980) (3,811)
Interest expense - (557) (640) - (51) (1,248) (15,489)
Intergovernmental - 7,699 - 15,940 - 23,639 -
Gain (Loss) on disposal of capital assets (646) (25) - 5 - (666) 151
Miscellaneous - 1,663 - 96 1,201 2,960 -
Total nonoperating revenues (expenses)(2,583) 8,830 (663) 15,963 1,158 22,705 (19,149)
Income (loss) before capital contributions
and transfers (498) 5,409 (460) (3,638) 3,378 4,191 131,363
Capital contributions - 18,100 - 653 - 18,753 -
Transfers in 1,601 48 200 13 408 2,270 5,125
Transfers out (5) (8) (5) - (1) (19) (233)
Total capital contributions and transfers 1,596 18,140 195 666 407 21,004 4,892
Change in net position 1,098 23,549 (265) (2,972) 3,785 25,195 136,255
Net position (deficit), beginning of year 38,859 94,744 1,452 24,951 22,933 182,939 (557,495)
Net position (deficit), end of year 39,957$ 118,293$ 1,187$ 21,979$ 26,718$ 208,134$ (421,240)$
See accompanying notes to the basic financial statements
36
COUNTY OF SONOMA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
(Dollars in Thousands)
Business-Type Activities-Enterprise Funds
Governmental
Activities
Refuse Airport
Energy
Independence
Program Transit Other Total
Internal Service
Funds
Cash flows from operating activities:
Received from customers 6,713$ 8,019$ 59$ 917$ 12,664$ 28,372$ -$
Received from interfund services provided - - - - - - 115,798
Received from assessments - - 4,711 - - 4,711 -
Received for interest - - 1,555 - - 1,555 -
Payments for assessments - - (5,149) - - (5,149) -
Payments to suppliers for goods and services (4,166) (3,059) (223) (15,848) (5,820) (29,116) (50,141)
Payments to employees for services (1,708) (2,740) (1,119) (787) (3,898) (10,252) (11,411)
Payments for interfund services used (133) (1,722) - - - (1,855) -
Net cash provided (used) by operating activities 706 498 (166) (15,718) 2,946 (11,734) 54,246
Cash flows from noncapital financing activities:
Transfers in - 53 - - 408 461 5,125
Transfers out (5) - (5) - (1) (11) (233)
Due from other funds 1,600 - - - - 1,600 400
Due to other governments - - - - - - 134
Due to other funds - - - - - - (100)
Advances to other funds - - - - (13) (13) (1,542)
Deposits from others - - - - - - (23)
Intergovernmental receipts 45 - - - - 45 -
Proceeds from bonds - - 5,067 - - 5,067 -
Principal paid on bonds - - (4,728) - - (4,728) (38,810)
Interest paid on bonds - - (648) - - (648) (15,660)
Proceeds from other governments - 7,699 - 14,558 - 22,257 -
Contributions - - - - 662 662 -
Net cash provided (used) by noncapital financing
activities 1,640 7,752 (314) 14,558 1,056 24,692 (50,709)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets - (17,051) - (652) (430) (18,133) (806)
Principal paid on capital debt - (457) - - (56) (513) -
Principal paid on loans - - - - (10) (10) -
Due from other governments - - - - (18) (18) -
Advances to other governments - - - - (365) (365) -
Proceeds from grants and other contributions - 8,511 - - - 8,511 -
Receipts from facility charges - 1,722 - - - 1,722 -
Capital contributions - - - 618 - 618 -
Interest paid - (564) - - (58) (622) (3)
Net cash provided (used) by capital and related
financing activities - (7,839) - (34) (937) (8,810) (809)
See accompanying notes to the basic financial statements
37
COUNTY OF SONOMA, CALIFORNIA
Statement of Cash Flows (continued)
Proprietary Funds
For the Year Ended June 30, 2022
(Dollars in Thousands)
Business-Type Activities-Enterprise Funds
Governmental
Activities
Refuse Airport
Energy
Independence
Program Transit Other Total
Internal Service
Funds
Cash flows from investing activities:
Interest received (loss) on investments (1,938) 36 (23) (79) 77 (1,927) (3,811)
Proceeds on loan receivable - 63 - - - 63 -
Net cash provided by (used in) investing activities (1,938) 99 (23) (79) 77 (1,864) (3,811)
Net increase (decrease) in cash and cash
equivalents 408 510 (503) (1,273) 3,142 2,284 (1,083)
Cash and cash equivalents, beginning of year 63,972 3,586 2,555 4,399 8,844 83,356 123,979
Cash and cash equivalents, end of year 64,380$ 4,096$ 2,052$ 3,126$ 11,986$ 85,640$ 122,896$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)2,085$ (3,421)$ 203$ (19,601)$ 2,220$ (18,514)$ 150,512$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Depreciation and amortization 1,153 3,723 29 3,552 1,170 9,627 2,397
Net pension activity (169) (238) - (86) (348) (841) (78,664)
Net OPEB activity (55) (76) - (27) (141) (299) (22,817)
Service concession arrangement (1,053) - - - - (1,053) -
Changes in operating assets and liabilities:
Decrease (increase) in:
Accounts receivable (243) (287) (267) 94 209 (494) (118)
Inventories - - - 20 (40) (20) -
Prepaid expenses and deposits 10 (31) - - - (21) 53
Other assets (40) (71) (356) - (59) (526) -
Increase (decrease) in:
Accounts payable (139) 888 178 283 41 1,251 571
Unearned revenue 18 9 (5) 38 - 60 -
Landfill closure and postclosure costs (862) - - - - (862) -
Self-funded insurance - - - - - - 3,837
Compensated absences 2 (2) - 9 (46) (37) 214
Other liabilities (1) 4 52 - (60) (5) (1,739)
Net cash provided (used) by operating activities 706$ 498$ (166)$ (15,718)$ 2,946$ (11,734)$ 54,246$
Reconciliation of cash and cash equivalents to the
Statement of Net Position:
Cash and investments 56,352$ 3,965$ 2,052$ 1,451$ 10,365$ 74,185$ 121,899$
Cash and investments with trustee - - - - - - 997
Restricted cash and investments, current - - - - 1,621 1,621 -
Restricted cash and investments, noncurrent 8,028 131 - 1,675 - 9,834 -
Total cash and cash equivalents 64,380$ 4,096$ 2,052$ 3,126$ 11,986$ 85,640$ 122,896$
Noncash investing, capital and financing activities:
Acquisition of capital assets through payables -$ 632$ -$ -$ -$ 632$ -$
Right-to-use lease acquisitions - - - - - - 432
See accompanying notes to the basic financial statements
38
COUNTY OF SONOMA, CALIFORNIA
Fiduciary Funds
Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Pension (and
Other Employee
Benefit)
Trust Funds
Investment
Trust
Private
Purpose
Trust
External
Investment
Pool Other
ASSETS
Cash and investments 1,595$ 1,377,925$ 6,984$ 430,098$ 52,972$
Restricted investments with trustee 265,550 4,705 858 899 342
Accounts receivable 71,405 9,805 788 31 46,615
Due from other governments - 4,056 - - 7,119
Investments at fair value:
Cash and equivalents 4,819 - - - -
Mutual funds 77,560 - - - -
Corporate obligations 182,011 - - - -
Government obligations 273,242 - - - -
Equities 2,134,078 - - - -
Other investments 854,425 - - - -
Total investments 3,526,135 - - - -
Other assets 1,969 81,380 446 - 1,123
Total assets 3,866,654 1,477,871 9,076 431,028 108,171
LIABILITIES
Accounts payable and other liabilities 3,668 8,164 95 192 2,339
Due to other governments - 12,187 62 89,386 12,050
Other liabilities 242,639 135,720 25,897 2,602 12,420
Total liabilities 246,307 156,071 26,054 92,180 26,809
NET POSITION (DEFICIT)
Restricted for:
Pension 3,521,361 - - - -
Other postemployment benefits 98,986 - - - -
Pool participants - 1,321,800 - 338,848 -
Organizations and other governments - - (16,978) - 81,362
Total net position (deficit)3,620,347$ 1,321,800$ (16,978)$ 338,848$ 81,362$
Custodial
See accompanying notes to the basic financial statements
39
COUNTY OF SONOMA, CALIFORNIA
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
(Dollars in Thousands)
Pension (and
Other Employee
Benefit)
Trust Funds
Investment
Trust
Private
Purpose
Trust
External
Investment
Pool Other
ADDITIONS
Contributions:
Employer contributions 112,169$ 2,193$ -$ -$ -$
Employee contributions 49,056 - - - -
OPEB employer contributions outside of
trust 2,575 - - - -
Total contributions 163,800 2,193 - - -
Investment earnings:
Net increase (decrease) in fair value of
investments 490,857 (47,811) (261) (15,138) (3,806)
Interest, dividends, and other 41,510 7,789 130 2,542 10,586
Total investment earnings (loss)532,367 (40,022) (131) (12,596) 6,780
Less investment costs:
Investment expense 23,553 - - - 376
Net investment earnings (loss)508,814 (40,022) (131) (12,596) 6,404
Property taxes - 878,197 85,000 - 146,004
Other taxes - 47,664 (3) - 32,232
Licenses and fees - 46,125 14 86 82,753
Miscellaneous 122 996,851 1,237 71,594 23,990
Total additions 672,736 1,931,008 86,117 59,084 291,383
DEDUCTIONS
Benefits paid to participants or beneficiaries 218,256 - - - -
Employer Plan Expense 2,604 - - - -
OPEB employer expense outside of trust 2,575 - - - -
Payments to other governments - 1,940,862 83,140 93,985 259,186
Interest expense - 4,224 975 - -
Administrative expenses 4,182 1,739 2 28 2,692
Total deductions 227,617 1,946,825 84,117 94,013 261,878
Special item:
Special Item - (2,255) - - -
Net increase (decrease) in fiduciary net
position 445,119 (18,072) 2,000 (34,929) 29,505
Net position (deficit), beginning 3,175,228 1,339,872 (18,978) 373,777 51,857
Net position (deficit), ending 3,620,347$ 1,321,800$ (16,978)$ 338,848$ 81,362$
Custodial
See accompanying notes to the basic financial statements
40
COUNTY OF SONOMA, CALIFORNIA
42
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
(DOLLARS IN THOUSANDS)
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the County of Sonoma (the County) conform to accounting principles generally accepted in
the United States of America as applicable to governmental entities. The following is a summary of significant
accounting policies:
(a) Definition of Reporting Entity
The County is a legal subdivision of the State of California and is charged with general governmental powers. The
County's powers are exercised through a five-member Board of Supervisors (the Board), which, as the governing
body of the County, is responsible for the legislative and executive control of the County. The County provides
certain services to its citizens, such as road construction and maintenance, law enforcement and criminal justice,
regional parks, growth management, and health and social services. In addition, the County administers various
special districts governed by the Board (the Special Districts) and provides services to other special districts
governed by independent local boards. The Special Districts are located within the boundaries of the County and
were established under various sections of the California Government Code. The County provides fiscal agent and
accounting services to many of these districts.
As required by generally accepted accounting principles (GAAP) in the United States of America, these financial
statements present the County (the primary government) and its component units, entities for which the County is
considered to be financially accountable. Blended component units, although legally separate entities are, in
substance, part of the County’s operations, and the Board is typically the governing body. Blended component
units are presented in the same manner as funds of the primary government. Discretely presented component
units are reported in a separate column in the government-wide financial statements to emphasize that they are
legally separate from the County.
Blended Component Units
Sonoma County Fair and Exposition, Inc. (Fair) – The governing body of the Fair is the County’s governing
body. The County owns the Fairgrounds property and has a contract with the Fair for operations. All debts and
obligations of the Fair are County debts and obligations. The Fair’s financial statements use calendar year
reporting. The financial statements are presented as of December 31, 2021, which is the latest period audited.
Sonoma County Securitization Corporation (Corporation) – The Corporation is a California non-profit public
benefit corporation established by the County Board of Supervisors in October 2000. The Corporation is
governed by a Board of 3 directors, 2 of which are officials of the County. Transactions related to the
Corporation are included in these financial statements as a blended component unit of the County including a
liability for Series 2020 Tobacco Settlement Asset-Backed Refunding Bonds. However, in the event of a decline
in the tobacco settlement revenues that are used to repay the loan payable, including the default or
bankruptcy of a participating cigarette manufacturer, resulting in a possible default on the loan payable,
neither the California County Tobacco Securitization Agency, the County nor the Corporation have any liability
to make up any such shortfall. Corporation transactions are reported within the Mandated Revenues Special
Revenue Fund.
NOTES TO THE BASIC FINANCIAL STATEMENTS
43
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Sonoma County Agricultural Preservation and Open Space District – The governing body of the District is the
County’s governing body. Voters approved a ¼% County levied sales tax to fund District activities and the
County issued bonds secured by the sales tax revenues. The District regularly donates land to the County’s
Regional Parks and other entities for use by citizens.
Sonoma County Public Financing Authority – The governing body of the Authority is the County’s governing
body. The Authority was formed for the purpose of assisting in financing public improvements of the County
and other local agencies. The County has operational responsibility for the Authority and manages it in the
same manner as its own departments. The Authority is combined with the Sonoma County Energy
Independence Program (SCEIP) and reported as an enterprise fund.
Sonoma County Employees’ Retirement Association – (SCERA) was established January 1, 1946, under the
provisions of the 1937 County Employees Retirement Act. SCERA is a cost-sharing, multiple-employer Defined
Benefit Pension Plan (Plan) legally separate entity from the County (Sonoma County). The County’s Board of
Supervisors appoints the voting majority of SCERA’s board and is legally obligated or has otherwise assumed
the obligation to make contributions to the pension plan. Accordingly, SCERA’s December 31, 2021 financials
are reported in the Fiduciary Funds of the basic financial statements. SCERA issues calendar year stand-alone
financial statements which are available at http://scretire.org/Financial/Financial-Reports/.
Discretely Presented Component Units
The entities noted below are discretely presented component units. The County’s Board of Supervisors has the
ability to exert its will on these entities, however the County is not involved in management of these entities
and does not have a financial burden/benefit relationship.
Sonoma County Water Agency (Sonoma Water) – The governing body of Sonoma Water is the County’s
governing body. Sonoma Water is managed differently than other County departments and its employees are
not civil service employees. Sonoma Water’s activities include the transportation of water and the generation
of electrical power to eight prime contractors (the cities of Santa Rosa, Petaluma, Sonoma, Rohnert Park and
Cotati, the Town of Windsor; and two water districts, Valley of the Moon and North Marin) along with the
engineering, administration, and operational services of four sanitation zones. These activities are primarily
financed from user fees.
Sonoma County Community Development Commission (Community Development Commission) – The
governing body of the Commission is the County’s governing body. The Commission is not managed the same
as other County departments and its employees are not civil service employees. The Commission, established
as a separate public and corporate entity pursuant to Section 34110 of the Health and Safety Code, provides
the community with the option of operating and governing its housing authority. The Board of Supervisors
designated itself as the Board of Commissioners of the Community Development Commission, and Sonoma
County Housing Authority, which is also the governing body of the Housing Successor Agency to the former
Redevelopment Agency.
Sanitation Districts – Several sanitation districts managed by Sonoma Water are discretely presented
component units of the County and include the following districts:
• Sonoma Valley County Sanitation District
• Russian River County Sanitation District
• South Park County Sanitation District
• Occidental County Sanitation District
COUNTY OF SONOMA, CALIFORNIA
44
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Sonoma Water provides administrative, engineering, operational and maintenance services to the Districts.
Each District is responsible for operating and maintaining local sanitation collection systems, pump stations
and treatment plants. The Districts’ activities are primarily financed through user fees.
Sonoma County Water and Wastewater Financing Authority (The Financing Authority) The governing body of
The Financing Authority is the County’s governing body and is managed by Sonoma Water. The Financing
Authority is not managed the same as other County departments and its employees are not civil service
employees. The Financing Authority was created to issue conduit debt obligations for the express purpose of
providing capital financing on behalf of Sonoma Water and various sanitation districts located within the
County. The Financing Authority and County have no obligation to remit to bondholders anything beyond
what is received from the parties on whose behalf the debt was issued. The Financing Authority is governed by
the Board of Supervisors of the County who act ex-officio as the Board of Directors. The exercise of this
oversight responsibility causes the Financing Authority to be a component unit of the County.
Financial Statements for each of the discretely presented component units, except The Financing Authority, can be
obtained from the Auditor-Controller-Treasurer-Tax Collector’s Office at 585 Fiscal Drive, Room 100, Santa Rosa,
California, 95403.
The Financing Authority does not issue separate financial statements as the disclosure of its conduit debt is
included in the discrete component financial information presented herein for Sonoma Water, and the Sonoma
Valley and South Park Sanitation Districts.
(b) Basis of Presentation
Government - Wide Financial Statements
The statement of net position and statement of activities provide information about the primary government (the
County) and its component units. These statements include the financial activities of the overall government,
except for fiduciary activities. Eliminations are made to minimize the double counting of internal activities.
Interfund services provided and used are not eliminated in the process of consolidation. These statements
distinguish between the governmental and business-type activities of the County. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on user fees and charges to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each
segment of the business-type activities of the County and for each function of the County’s governmental
activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are
clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or
services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular program. Revenues that are not classified as program revenues, including all
taxes, are presented instead as general revenues.
Fund Financial Statements
The fund financial statements provide information about the County’s funds, including fiduciary funds and blended
component units. Separate statements for each fund category – governmental, proprietary and fiduciary – are
presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each
displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and
reported as nonmajor funds.
NOTES TO THE BASIC FINANCIAL STATEMENTS
45
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated
with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up
essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from
nonexchange transactions or ancillary activities. Operating expenses for enterprise and internal service funds
include services and supplies, salaries and employee benefits, self-insurance claims and depreciation on capital
assets. All expenses not falling within these categories are reported as nonoperating expenses.
The County reports the following major governmental funds:
• The General Fund accounts for all revenues and expenditures necessary to carry out the basic governmental
activities of the County that are not accounted for through other funds. Revenues are primarily derived from
taxes; licenses, permits and franchise fees; fines, forfeitures and penalties; use of money and property;
intergovernmental revenues; charges for services; and other revenues. Expenditures are primarily expended
for functions of general government, public protection, public ways and facilities, public assistance, education,
recreation and cultural services, capital outlay, and debt service.
• The Human Services Special Revenue Fund accounts for proceeds restricted for the activities of the County’s
various state and federally funded public assistance programs.
• The Health and Sanitation Special Revenue Fund accounts for proceeds restricted for public health and
mental health programs, which are primarily funded by state and federal agencies.
• The Open Space Special Tax Account Special Revenue Fund accounts for revenues received from County
levied sales tax Measure F which restricts funds to certain activities of the Sonoma County Agricultural
Preservation and Open Space District.
The County reports the following major proprietary funds:
• The Refuse Enterprise Fund accounts for Sonoma County integrated waste management activities throughout
the County and is administered as a division of the Sonoma County Department of Transportation & Public
Works. Activities include management of one sanitary landfill and five transfer stations; regulation of two
franchised commercial refuse haulers; and development, administration, and implementation of the County
Integrated Waste Management Plan.
• The Airport Enterprise Fund accounts for activities related to the operations of the Charles M. Schultz Sonoma
County Airport (Airport). Airport operations include commercial passenger services as well as air cargo, private
and corporate flights, military, search and rescue, firefighting, and law enforcement services.
• The Sonoma County Energy Independence Program Enterprise Fund (SCEIP or Energy Independence
Program) accounts for activities related to the passage of California Assembly Bill 811 (AB 811) in July 2008.
Activities include financing to commercial and residential property owners for energy and water efficiency
improvements on existing buildings.
• The Transit Enterprise Fund accounts for activities related to the provision of fixed-route transit and ADA
paratransit services operating throughout Sonoma County. Operation of the system is largely funded through
Transportation Development Act contributions from local governments. The route network consists of a mix
of local, intercity and SMART connector routes.
COUNTY OF SONOMA, CALIFORNIA
46
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The County reports the following additional fund types:
• Internal Service Funds account for the financing of goods or services provided by one department or agency
to other departments or agencies of the County or other governmental units on a cost reimbursement basis.
Activities include the County’s self-insurance programs, heavy equipment replacement, the County’s ERP
System, the County’s employee retirement program, and the County’s other postemployment benefits (OPEB)
program.
• Pension (and Other Employee Benefit) Trust Funds accounts for the County Defined Benefit Pension Plan, a
legally separate blended component unit of the County, and for assets held in trust by the Public Agency
Retirement Services (PARS) for future postemployment healthcare plan benefits.
• Investment Trust Funds account for the assets of legally separate entities, which invest in the County
Treasurer’s investment pool. These entities include school and community college districts and other
independent special districts governed by local boards. These funds represent the assets, primarily cash and
investments, held in trust for these entities.
• Private-Purpose Trust Fund established by the County to report trust arrangements under which principal and
income benefit other governments. This fund reports the assets, liabilities and activities of the Sonoma County
Redevelopment Successor Agency.
• Custodial Funds reports fiduciary funds that are not required to be reported in Investment Trusts, OPEB,
Pension or Private Purpose Trust funds. These include Law Enforcement, Unapportioned Tax Collections and
others.
(c) Basis of Accounting
The government-wide, proprietary funds and fiduciary trust funds financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal
value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis,
revenues from property taxes are recognized in the fiscal year for which the taxes are levied. Revenues from sales
taxes are recognized when the underlying transactions take place. Revenues from grants, entitlements and
donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.
Governmental funds financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and
available. Property taxes are accrued when the receipt occurs within sixty days of the end of the fiscal year. Sales
and other taxes, interest, certain state and federal grants and charges for services are accrued when the receipt
occurs within three hundred sixty-five days of the end of the fiscal year so as to be both measurable and available.
Licenses, permits, fines, forfeitures, and other revenues are recorded as revenues when received in cash because
they are generally not measurable until actually received. Expenditures are generally recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments are recorded only when payment is due. General capital asset
acquisitions are reported as expenditures in governmental funds. Proceeds from the issuance of general long-term
debt, long term asset leases, financed purchases, and the sale of capital assets are reported as other financing
sources.
Custodial funds apply the accrual basis of accounting using the economic resources measurement focus.
NOTES TO THE BASIC FINANCIAL STATEMENTS
47
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d) Non-Current Governmental Assets/Liabilities
Non-current governmental assets and liabilities, such as capital assets and long-term liabilities, are reported in the
governmental activities column in the government-wide statement of net position.
(e) Cash and Cash Equivalents
For purposes of the accompanying statement of cash flows, the enterprise and internal service funds consider all
highly liquid investments with a maturity of three months or less when purchased, and equity in the County
Treasurer’s investment pool, to be cash equivalents.
(f) Investments
In accordance with GASB Statement No. 31, “Accounting and Financial Reporting for Certain Investments and
External Investment Pools” and GASB Statement No. 72, “Fair Value Measurement and Application”, investments
are stated at fair value in the statement of net position and the corresponding changes in the fair value of
investments are recognized in the year in which the change occurred. The County follows the practice of pooling
cash and investments of all funds with the County Treasurer except for certain restricted funds held by outside
custodians, funds held by a trustee, or funds in dedicated investments for the benefit of an individual pool
participant.
The fair value of investments is determined annually. Interest earned on pooled investments is allocated quarterly
to the appropriate funds based on the respective average daily balance for that quarter. At the Board’s direction,
the investment income related to certain County funds is allocated to the General Fund.
(g) Restricted Cash and Investments
Restricted assets in the governmental funds represent cash and investments that are restricted for debt service
pursuant to various debt covenants. Restricted assets in the enterprise funds primarily represent cash and
investments that are restricted for debt service pursuant to various debt covenants and customer deposits.
(h) Inventories
Inventories for governmental and proprietary funds, consist of materials and supplies held for consumption,
valued at cost, using the first-in, first-out method. Governmental funds inventory costs are recorded as
expenditures when consumed, rather than when purchased. Inventories reported in governmental funds are
offset by nonspendable fund balance, which indicates that inventories do not represent expendable available
financial resources.
(i) Assets Held for Sale
Assets held for sale, are valued at the lower of cost or market for both governmental and proprietary funds, consist
of real estate assets no longer in operational use and are intended to be sold on the open market.
(j) Prepaid Items/Expenses and Deposits
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid
expenses in both the government-wide and fund financial statements. Prepaid expenses are recorded when
consumed rather than when purchased. In the fund financial statements, prepaid items/expenses and deposits are
offset by corresponding nonspendable fund balance to indicate that they are not available for appropriation and
are not expendable available financial resources.
COUNTY OF SONOMA, CALIFORNIA
48
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(k) Capital Assets
Capital assets include land, land improvements, buildings and improvements, machinery and equipment,
infrastructure (e.g. roads, bridges, sidewalks), and intangible assets (e.g. land easements, computer software,
right-to-use assets). Assets purchased or constructed are reported at historical cost or at estimated historical cost
if actual historical cost is not available. Donated capital assets are valued at estimated acquisition value on the
date of donation.
Normal maintenance and repairs are charged to operations when incurred. Betterments and major improvements
that significantly increase values, change capacities, or extend useful lives are capitalized. Upon sale or retirement
of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and
any resulting gain or loss is included in the results of operations.
Capital outlays are recorded as expenditures in the governmental funds and as additions to capital assets in the
proprietary and fiduciary funds and the government-wide financial statements, in accordance with the County’s
capitalization policy.
Capital assets used in operations are depreciated or amortized using the straight-line method over the estimated
useful life in the government-wide statements, proprietary funds, and fiduciary trust funds statements.
The capitalization thresholds and estimated useful lives for capital assets are as follows:
Capitalization Threshold Estimated Useful Life
Land and permanent easements $ -N/A
Land improvements 25 15 to 50 years
Buildings and improvements:
Buildings 25 50 years
Service and safety systems 25 20 years
Building improvements 25 15 years
Machinery and equipment
Equipment, construction and grounds equipment 5 5 to 15 years
Vehicles 15 5 to 15 years
Furniture 25 5 years
Infrastructure:
Pavement 100 25 years
Bridges 100 50 years
Other small systems 100 25 years
Intangible assets:
Purchased canned software 25 3 years
Internally created software 25 10 years
Right-to- use leased asset 25
Leasehold improvements 25
Other capital assets
Works of art or historical treasures 5 Varies
Library books and equipment 5 Varies
Construction in progress / work in progress Expected to exceed
capitalization threshold
N/A
Shorter of lease term or
useful life of asset
(l) Deferred Outflows and Inflows of Resources
The County recognizes deferred outflows and inflows of resources. A deferred outflow of resources is defined as a
consumption of net position by the government that is applicable to a future reporting period. A deferred inflow of
resources is defined as an acquisition of net position by the government applicable to a future reporting period.
NOTES TO THE BASIC FINANCIAL STATEMENTS
49
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m) Leases
The County is a lessee for noncancellable leases of buildings and land. The County recognizes a lease liability and
right-to-use asset with an initial individual value of over $25,000.
The County measures the lease liability at the commencement of the lease using the present value of payments
expected to be made during the lease term. The lease liability is reduced by the principal portion as lease
payments are made. The right-to-use asset is initially recorded at the initial amount of the lease liability, adjusted
for payments made on or before the commencement date, plus any initial direct costs. The right-to-use assets are
amortized on a straight-line basis over the short of the lease term or their useful lives.
Key estimates related to leases include their rate used to discount expected lease payments, lease terms, and lease
payments.
• Discount rate – The County uses the interest rate charged by the lessor as the discount rate. When the
interest rate charged by the lessor is unavailable, the County uses an estimated incremental borrowing
rate.
• Lease term – The lease term includes all noncancellable periods of the lease.
• Lease payments – Lease payments for measuring the lease liability include all fixed payments and
purchase option prices when the County is reasonably certain to exercise the option.
The County monitors changes in circumstances that would require a remeasurement of its leases and remeasures
lease assets and liabilities if changes occur that are expected to significantly affect the amount of the lease liability.
The County is a lessor for noncancellable leases of buildings and land. The County recognizes an associated lease
receivable and deferred inflow of resources.
At the commencement of a lease, the County initially measures the lease receivable at the present value of
payments expected to be received during the lease term. The lease receivable is reduced by the principal portion
as lease payments are received. The deferred inflow of resources is initially measured as the amount of the lease
receivable, adjusted for any lease payments received on or before the lease commencement date. The deferred
inflow of resources is recognized as revenue over the life of the lease term.
Key estimates related to leases include the rate used to discount expected lease payments, lease terms, and lease
receipts.
• Discount rate – The County uses the estimated incremental borrowing rate as the discount rate for leases.
• Lease term – The lease term includes all noncancellable periods of the lease.
• Lease receipts – Lease receipts used in the measurement of the lease receivable include all fixed
payments from the lessee.
The County monitors changes in circumstances that would require a remeasurement of its leases and remeasures
lease receivables and deferred inflows of resources if changes occur that are expected to significantly affect the
amount of the lease receivable.
(n) Long-term Obligations
In the government-wide, proprietary and fiduciary fund financial statements, long-term debt and other long-term
obligations are reported as liabilities in the respective statements of net position.
In governmental fund types, bond and certificate of participation premiums, discounts and issuance costs are
recognized in the period issued. In the government-wide statement of net position, and proprietary and fiduciary
trust statement of net position premiums and discounts are deferred and amortized over the terms of the issuance
using the straight-line method, which approximates the effective interest method.
COUNTY OF SONOMA, CALIFORNIA
50
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(o) Net Position/Fund Balance
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is
categorized as net investment in capital assets (net of related debt), restricted or unrestricted.
• Net Investment in Capital Assets – consists of capital assets, net of accumulated
depreciation/amortization, reduced by outstanding debt balances attributable to the acquisition,
construction, or improvement of those assets. Includes deferred outflows/inflows of resources and
deferred inflows of resources that are attributable to the acquisition, construction, or improvement of
those assets.
• Restricted – consists of restricted assets reduced by liabilities and deferred inflows of resources related to
those assets. Assets are reported as restricted when constraints are placed on asset use either by external
parties or by law through constitutional provision or enabling legislation.
• Unrestricted – Net position not restricted for any project or other purpose.
In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed,
assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how
specific amounts can be spent.
• Nonspendable Fund Balance – Amounts that cannot be spent because they are not spendable in form or
are legally or contractually required to be maintained intact.
• Restricted Fund Balance – Amounts with constraints placed on use by creditors, grantors, contributors
or laws or other governments regulations; or restrictions imposed by law through constitutional
provisions or enabling legislation.
• Committed Fund Balance – Amounts used for specific purposes pursuant to constraints imposed by
ordinance or resolution of the County’s highest decision-making authority (Board of Supervisors) and
that remain binding unless removed by an equally binding action.
• Assigned Fund Balance – Amounts constrained by the County’s intent to be used for specific purposes.
The intent can be established by the County’s highest level of decision-making authority (Board of
Supervisors) or by a body or an official to which the Board has delegated the authority (i.e., County
Administrator). The Board has delegated the authority to assign fund balance to the County
Administrator.
• Unassigned Fund Balance – The residual classification for the County’s General Fund that includes
amounts not contained in the other classifications. In other funds the unassigned classification is used
only if the expenditures incurred for specific purposes exceed the amounts restricted, committed, or
assigned to those purposes (i.e., negative fund balance).
The Board of Supervisors establishes, modifies or rescinds fund balance commitments by passage of an ordinance
or resolution, each resulting in equally binding constraints, and through adoption of the budget and subsequent
budget amendments that occur throughout the year.
When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted
resources first, followed by committed, assigned and unassigned resources as they are needed.
The Board will maintain a minimum level of unassigned General Fund Reserve balance equal to 1/12 (8.3%) or 1
month of annual General Fund revenues. Consistent with best practice recommendations from the Government
Finance Officers Association of the United States and Canada, the County will strive to maintain a total unassigned
General Fund Reserve balance equal to 1/6 or 2 months of annual General Fund operating revenues.
NOTES TO THE BASIC FINANCIAL STATEMENTS
51
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(p) Property Tax Levy, Collection and Maximum Rates
Property taxes, including tax rates, are regulated by the State and are administered locally by the County. The
County is responsible for assessing, collecting and distributing property taxes in accordance with state law. Liens
on real property are established January 1 for the ensuing fiscal year. The property tax is levied as of July 1 on all
taxable property located in the County.
Secured property taxes are due in two equal installments on November 1 and February 1 and are delinquent after
December 10 and April 10, respectively. Unsecured property taxes are due in a single installment due July 31 and
are delinquent after August 31. Unsecured property taxes added to the unsecured roll after July 31 are delinquent
after the last day of the month succeeding the month of enrollment. Additionally, supplemental property taxes
are levied on a pro rata basis when changes in assessed valuation occur due to sales transactions or the
completion of construction.
Since the passage of Article XIII of the California Constitution (commonly referred to as Proposition 13), beginning
with fiscal year 1978/1979, general property taxes are based either on a flat one percent rate applied to the
1975/1976 full value of the property or on one percent of the sales price of the property on sales transactions and
construction after the 1975/1976 valuation. Taxable values on properties (exclusive of increases related to sales
and construction) can rise at a maximum of two percent per year.
Net taxable valuation for the year ended June 30, 2022, was approximately $104.9 billion, which includes secured,
unsecured, Home Owner Property Tax Relief, and unitary values. The tax rate was $1 per $100 of valuation ($0.35
for the County and Special Districts, $0.48 for schools, $0.09 for cities, and $0.08 for redevelopment activities
within the County of Sonoma). On February 1, 2012, the State of California dissolved all redevelopment agencies
(see Note 19 – Successor Agency Private Purpose Trust Fund). Taxes are collected by the County and apportioned
to each taxing agency in accordance with state law. In addition, special assessments are levied to provide for debt
service on general obligations that were voter-approved. Delinquencies for the year amounted to approximately
1.3% of the current secured and unsecured property tax revenue assessed.
In fiscal year 1993-94, the County adopted the Alternate Method of Property Tax Allocation (commonly referred to
as the Teeter Plan). Under the Teeter Plan, the County Auditor-Controller-Treasurer-Tax Collector, an elected
official, is authorized to pay 100 percent of the property taxes billed (secured, supplemental, and debt service) to
the taxing agencies within the County. The County recognizes property tax revenues in the period for which the
taxes are levied and retains all penalties and interest upon collection of the applicable delinquent taxes.
(q) Compensated Absences
County employees are entitled to certain compensated absences based on length of employment and position
held. Vacation pay is subject to certain maximum accumulations and is payable upon termination. Sick leave may
be accumulated without limitation. An average of the most recent three years cost to convert sick leave to service
credits for employees separating due to retirement from the County is included in the compensated absence
liability.
(r) Pension
The County recognizes a net pension asset or liability, representing the County’s proportionate share of the excess
or deficiency the fiduciary net position of the pension plan as compared to the total pension liability over the
fiduciary net position of the pension plan as stated in the actuarial report provided by the Sonoma County
Employees’ Retirement Association (SCERA). Changes in the net pension liability are recorded, in the period
incurred, as pension expense or as deferred inflows or outflows of resources. Benefit contributions are recognized
when due and payable. Investments are reported at fair value.
COUNTY OF SONOMA, CALIFORNIA
52
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(s) Other Postemployment Benefits
The County recognizes a net other postemployment benefit (OPEB) liability, which represents the County’s excess
of the total OPEB liability over the fiduciary net position of the OPEB plan as stated in the actuarial report
completed by an external actuarial firm. Changes in the net OPEB liability are recorded, in the period incurred, as
OPEB expense or as deferred inflows or outflows of resources. Benefit contributions are recognized when due and
payable. Investments are reported at fair value.
(t) Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect certain reported amounts
and disclosures. Actual results could differ from those estimates.
(u) Implementation of Governmental Accounting Standards Board (GASB) Statements
The following GASB statements were implemented for the fiscal year ending June 30, 2022:
GASB Statement No. 87, Leases: The implementation of this standard establishes a single model for lease
accounting based on the foundational principle that leases are financings of the right to use an underlying asset.
The standard requires recognition of certain lease assets and liabilities for leases that previously were classified as
operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions
of the contract. The effect of the implementation of this standard on beginning net position is disclosed in Note 20
and the additional disclosures required by this standard is included in Note 9.
GASB Statement No. 93, Replacement of Interbank Offered Rates (IBOR): Addresses accounting and financial
reporting implications that result from the replacement of an IBOR. Effective FY 2021-22.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans: Provides guidance on accounting and financial reporting
for fiduciary component units and certain benefit plans. Effective FY 2021-22.
(v) Future GASB Pronouncements
The County has not determined the effect on the financial statements of the following issued GASB statements:
GASB Statement No. 91, Conduit Debt Obligations: Clarifies conduit debt obligation definition. Effective FY 2022-
23.
GASB Statement No. 92, Omnibus 2020: Address several other statements previously published including
Statements 74, 75, 84, 87 and asset retirement obligations in government acquisitions. Effective FY 2022-23.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements:
Provides guidance on accounting and financial reporting for these transactions. Effective FY 2022-23.
GASB Statement No. 96, Subscription-based information technology arrangements (SBITAs): Provides guidance on
accounting and financial reporting for SBITAs. Effective FY 2022-23.
GASB Statement No. 99, Omnibus 2022: Address several other statements previously published including
Statements 53, 87, 94, and 96. Effective FY 2022-23.
GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62:
Provides guidance on accounting and financial reporting for accounting changes and error corrections. Effective FY
2023-24.
NOTES TO THE BASIC FINANCIAL STATEMENTS
53
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GASB Statement No. 101, Compensated Absences: Provides guidance on accounting and financial reporting for
Compensated Absences. Effective FY 2024-25.
NOTE 2 – CASH AND INVESTMENTS
(a) Financial Statement Presentation
Total cash and investments at June 30, 2022 were presented on the County’s financial statements as follows:
Cash and
Investments Held by
Sonoma County
Treasury
Cash and
Investments Held
with Third Parties Petty Cash
Total Cash and
Investments
Primary government $ 1,064,049 $ 20,072 $ 30 $ 1,084,151
Discrete component units 235,807 38,802 1 274,610
Investment trust fund 1,377,925 4,702 3 1,382,630
Pension (and Other Employee Benefit) trust 1,595 3,791,685 - 3,793,280
Private purpose trust fund 6,984 858 - 7,842
Custodial funds 483,070 1,241 - 484,311
$ 3,169,430 $ 3,857,360 $ 34 $ 7,026,824
(b) Investment Guidelines and Investment Policy
The County’s cash and investments are invested by the County Treasurer in accordance with investment policy
guidelines and California Government Code. The objectives of the policy are, in order of priority, safety of capital,
liquidity, and yield. The policy addresses the soundness of financial institutions in which the County will deposit
funds, types of investment instruments as permitted by the California Government Code, and the percentage of
the portfolio that may be invested in certain instruments with longer terms to maturity. The Treasury Oversight
Committee requires an annual audit to ensure the County’s Investment Portfolio is in compliance with its policy
and California Government Code Section 53601.
The investment policy restricts the maximum investment the Sonoma County Pooled Investment Fund may invest
in one issuer for the following investment types:
• Bankers’ Acceptance - 30%
• Commercial Paper – 10%
• Mutual Funds – 10%
• Money Market Mutual Funds – 10%
Investments held with trustees under bond indentures or other restrictive agreements are invested by the County
Treasurer, and reviewed and approved by the Board of Supervisors.
A copy of the County investment policy is available upon request from the Sonoma County Treasurer at 585 Fiscal
Drive, Room 100, Santa Rosa, California, 95403 or can be found online at www.Sonoma-County.org on the Auditor-
Controller-Treasurer-Tax Collector’s page.
The table on the following page identifies the investment types that are authorized and references the respective
California Government Code. This table does not address investments of debt proceeds held by bond trustees that
are governed by the provisions of debt agreements of the County, rather than the general provisions of the
County’s investment policy.
COUNTY OF SONOMA, CALIFORNIA
54
NOTE 2 – CASH AND INVESTMENTS (Continued)
Investment Type
Maximum
Maturity
Maximum %
of Pool
Rating
U.S Treasury and Agency Securities
(§53601 (b & f))
Obligations Issued or Unconditionally Guaranteed by the
International Bank for Reconstruction and Development,
International Finance Corporation or Inter-American
Development Bank
(§53601 (q))
Bonds and Notes issued by local agencies
(§53601 (a & e))
Registered State Warrants and Municipal Notes and Bonds
(§53601 (c & d))
Bankers’ Acceptances
(§53601 (g))
Commercial Paper
(§53601 (h) and (§53635 (a))
Negotiable Certificates of Deposit
(§53601 (i))
Repurchase Agreements
(§53601 (j))
Reverse Repurchase Agreements and Securities Lending
Agreements
(§53601 (j))
Medium Term Corporate Notes
(§53601 (k))
Mutual Funds & Money Market Mutual Funds
(§53601 (l))
Collateralized Mortgage Obligations
(§53601 (o))
Joint Powers Agreement
(§53601 (p))
Local Agency Investment Fund (LAIF)
(§16429.1)
Investment Trust of California (CalTRUST)
(§6509.7)
Collateralized Time Deposits
(§53649et seq.)
5 years
5 years
5 years
5 years
180 days
270 days
5 years
1 year
92 days
5 years
N/A
5 years
N/A
N/A
N/A
5 years
100
30
100
100
40
40
30
100
20
30
20
20
20
As limited by
LAIF
As limited by
CalTRUST
N/A
N/A
AA
N/A
N/A
N/A
A-1/F-1/P-1
N/A
N/A
N/A
A
Aaa & AAAm
AA
N/A
N/A
N/A
N/A
NOTES TO THE BASIC FINANCIAL STATEMENTS
55
NOTE 2 – CASH AND INVESTMENTS (Continued)
(c) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. In a rising interest rate market, the fair value of investments could decline below original cost.
Conversely, in a declining interest rate market, the fair value of investments will generally increase. The County
investment policy does not contain requirements that would limit the exposure to interest rate risk. The County
manages its exposure to interest rate risk by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing evenly over
time as necessary to provide the cash flow and liquidity needed for operations, which precludes the County from
having to sell investments below original cost. Of the County’s $3.2 billion portfolio as of June 30, 2022, 30% of the
investments have a maturity of one year or less. Of the remainder less than 1%, all of which are SCEIP bonds, have
a maturity of more than 5 years.
(d) Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits or will not be able to recover collateral securities that are in the
possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure
of the counterparty to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. The California Government Code and the County’s
investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk
for deposits or investments, other than the following provision for deposits and securities lending transactions:
• The California Government Code requires that a financial institution secure deposits made by state or
local governmental units by pledging securities in an undivided collateral pool held by a depository
regulated under state law. The market value of the pledged securities in the collateral pool must equal at
least 110% of the total amount deposited by the public agencies.
• California law also allows financial institutions to secure the County’s deposits by pledging first trust deed
mortgage notes having a value of 150% of the secured public deposits.
• The California Government Code limits the total of all securities lending transactions to 20% of the fair
value of the investment portfolio.
(e) Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the
County’s policy to purchase investments meeting ratings requirements established by the California Government
Code.
(f) Concentration of Credit Risk
The County investment policy contains no limitations on the amount that can be invested in any one issuer beyond
that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury
securities, mutual funds or external investment pools) that represent 5% or more of total County pooled
investments are as follows:
Issuer Investment Type Amount Percentage Holdings
Federal Farm Credit Bank Federal Agency Security $ 280,865 8.80 %
Federal Home Loan Bank Federal Agency Security 243,959 7.65
Federal Home Loan Mortgage Corp.Federal Agency Security 189,248 5.93
Federal National Mortgage Association Federal Agency Security 244,755 7.67
International Finance Corp Supranational Obligation 168,384 5.28
COUNTY OF SONOMA, CALIFORNIA
56
NOTE 2 – CASH AND INVESTMENTS (Continued)
(g) Treasury Pool
The Treasury Pool includes amounts held for various school districts, whose participation in the Treasury Pool is
mandated by State code. Cash on deposit with the Treasury Pool at June 30, 2022 is stated at fair value. The
Treasury Pool’s fair value calculations at fiscal year-end are based on quoted market values provided by the
County’s investment software. The fair value adjustment decreased the Treasury Pool’s investment income and
carrying value by $113,388 at June 30, 2022. Involuntary participants of the County’s investment pool totaled
$1,377,391 at June 30, 2022. Investments held in the Treasury Pool are summarized as follows:
Investment Cost Fair Value Interest Rate Range Maturity Range
U.S. Agency securities 1,009,669$ 958,827$ 0.12-2.00 %7/1/22-1/22/26
U.S. Treasury Notes 413,804 404,019 0.12-2.50 7/15/22-1/31/25
Supranational obligations 427,885 411,199 0.25-7.62 7/1/22-11/17/26
Other government obligations 412,700 392,396 0.22-5.45 7/1/22-5/15/27
Certificates of deposit 360,000 357,458 0.17-0.40 7/7/22-7/27/23
Corporate and medium term notes 554,865 541,636 0.25-3.70 7/5/22-2/2/26
Money market mutual funds 11,839 11,839 0.31 1 day
CalTRUST 55,000 55,000 0.025 1 day
CAMP 58,000 58,000 0.05 1 day
Totals 3,303,762$ 3,190,374$
(h) Condensed Pool Statements
The Treasury Pool includes investments with a fair value of $3,190,374 and deposits of $108,784 The following
represents a condensed statement of net position and changes in net position for the Treasury Pool as of and for
the fiscal year ended June 30, 2022:
Statement of Net Position
Cash and investments 3,299,158$
Less: Investments held by fiscal agent (116,255)
Net position held in trust for pool participants 3,182,903$
Equity of internal participants 1,315,962$
Equity of external pool participants 1,866,941
Net position held in trust for pool participants 3,182,903$
Statement of Changes in Net Position
Net position at July 1, 2021 3,096,570$
Net change in pooled cash and investments 86,333
Net position held in trust for pool participants at June 30, 2022 3,182,903$
NOTES TO THE BASIC FINANCIAL STATEMENTS
57
NOTE 2 – CASH AND INVESTMENTS (Continued)
(i) Investment Credit Ratings and Maturity
As of June 30, 2022, the County’s investments and credit ratings are as follows:
Maturity
Credit Rating
(Moody's
/ S & P)
Under 30
Days 31-180 Days
181-365
Days 1-5 Years
Over 5
Years Fair Value
Non-pooled investments:
Cash and cash equivalents Not rated 6,111$ -$ -$ -$ -$ 6,111$
Money market mutual funds AAAm 11,157 - - - - 11,157
OPEB trust investments:
Cash and cash equivalents Not rated 4,819 - - - - 4,819
Mutual funds Not rated 77,560 - - - - 77,560
Corporate obligations A2/A - 81 - 3,208 4,216 7,505
Government obligations Aa3/AA-- - 5 1,328 7,770 9,103
Total investments held by fiscal agents 99,647$ 81$ 5$ 4,536$ 11,986$ 116,255$
Investments managed by County Treasurer:
U.S. Agency Securities:
Federal Farm Credit Bank Aaa/AAA 42,988 999 17,699 219,179 - 280,865
Federal Home Loan Bank Aaa/AAA - 1,172 18,840 223,947 - 243,959
Federal Home Loan Mortgage Corp.Aaa/AAA - - 17,294 171,954 - 189,248
Federal National Mortgage Association Aaa/AAA - 27,553 - 217,202 - 244,755
Subtotal U. S. Agency Securities 42,988 29,724 53,833 832,282 - 958,827
U.S. Treasury Aaa/AA+- - - 404,019 - 404,019
Supranational obligations Aaa/AAA 23,320 39,297 41,864 306,718 - 411,199
Other government obligations Aa2/AA 2,685 32,524 26,197 320,500 10,490 392,396
Certificates of deposit Aa2/AA 109,899 79,801 98,962 68,796 - 357,458
Corporate and medium term notes Aa3/AA-54,044 63,081 134,895 289,616 - 541,636
Money market mutual funds AAAm 11,839 - - - - 11,839
Joint Powers Authority Pool:
CalTRUST Aaa/AAA 55,000 - - - - 55,000
CAMP Aaa/AAA 58,000 - - - - 58,000
Total investments managed by County Treasurer 357,775$ 244,427$ 355,751$ 2,221,931$ 10,490$ 3,190,374
Cash and deposits N/A 35,992
Less outstanding warrants N/A (56,936)
Subtotal cash and investments managed by
County Treasurer 3,169,430
Cash and deposits - other 129,728
Subtotal cash and investments managed by
County Treasurer 3,299,158
COUNTY OF SONOMA, CALIFORNIA
58
NOTE 2 – CASH AND INVESTMENTS (Continued)
Discrete Component Units Maturity
Sonoma Water
12 Months or
Less
13 – 24
Months
25 – 60
Months
More than 60
Months Fair Value
Non-pooled investments:
Money market mutual funds AAAm 8,171$ -$ -$ -$ 8,171$
U.S. Treasury STRIPS N/A 6,256 - - - 6,256
U.S. Treasury Notes N/A - 4,529 2,181 - 6,710
SCEIP bonds N/A 453 529 565 11,512 13,059
Total investments held by bond trustees 14,880$ 5,058$ 2,746$ 11,512$ 34,196$
Sonoma Valley County Sanitation District
Non-pooled investments:
Money market mutual funds AAAm 773$ 773$
Fiduciary Component Units
SCERA non-pooled investments:3,692,697$
Total cash and investments 7,026,824$ (j) Joint Powers Authorities
The County is a voluntary participant in two Joint Powers Authorities (JPAs), the California Asset Management
Program (CAMP) and the Investment Trust of California (CalTRUST), which fall under California Government Code
53601(p). CAMP and CalTRUST are each directed by a Board of Trustees made up of experienced investment
officers, local government finance directors, and treasurers of the public agency members. The value of pool
shares in CAMP and CalTRUST that may be withdrawn is determined on an amortized cost basis, which is the same
as the fair value of the County’s portion in the pool. As of June 30, 2022 the County’s total investment in JPAs was
$113,000.
(k) Tobacco Endowment
In accordance with California Government Code Section 53601, any investment with a maturity in excess of five
years requires the express authorization of the County’s Board of Supervisors. In 2002, the County established the
Sonoma County Tobacco Endowment Fund (Endowment) for the purpose of funding future capital improvements.
The Endowment was funded from a portion of the proceeds of the Series 2002B Tobacco Securitization Bonds.
Pursuant to a resolution by the Board of Supervisors on October 24, 2000, the County Treasurer was authorized to
purchase tax-exempt municipal obligations of any state or local government with a final maturity no later than the
final maturity of the Bonds in 2030. As of June 30, 2022, the County’s investment in the Tobacco Endowment was
invested in money market mutual funds totaling $11,799.
(l) Sonoma County Energy Independence Program (SCEIP)
In accordance with California Government Code Section 53601, any investment with a maturity in excess of five
years requires the express authorization of the County’s Board of Supervisors. On March 24, 2009, the Board of
Supervisors authorized the creation of the Sonoma County Energy Independence Program (SCEIP) enabling
Sonoma County property owners to finance energy conservation and generation improvements through voluntary
contractual property assessments. State Assembly Bill 811 is the authorizing legislation for SCEIP and was signed
into law the fall of 2008. To finance the program, on April 21, 2009, the Board of Supervisors authorized the
Sonoma County Treasury Pooled Investment Fund to purchase up to $60,000 of SCEIP bonds issued by the Sonoma
County Public Financing Authority with maturities of 10 and 20 years. As of June 30, 2022, the County’s
investment in SCEIP bonds, included in other governmental obligations was $10,636.
NOTES TO THE BASIC FINANCIAL STATEMENTS
59
NOTE 2 – CASH AND INVESTMENTS (Continued)
(m) Fair Value Measurements
The County categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The three levels of the hierarchy are based on the valuation inputs used to
measure the fair value of the asset and are described as follows:
• Level 1: Investments reflect prices quoted in active markets for identical assets.
• Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly,
which may include inputs in markets that are not considered to be active.
• Level 3: Investments reflect prices based on unobservable inputs which reflect the County’s own
assumptions about the inputs market participants would use in pricing the asset (including assumptions
about risk). Unobservable inputs are developed based on a collateralized cost basis.
The County’s investments measured at fair value as of June 30, 2022 are as follows:
Fair Value Measurements Using
Investments Amount
Quoted Prices in
Active Markets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
U.S. Agency securities 958,827$ -$ 958,827$ -$
U.S. Treasury Notes 404,019 404,019 - -
Supranational obligations 411,199 - 411,199 -
Other government obligations 392,397 - 381,761 10,636
Certificates of deposit 357,458 - 357,458 -
Corporate and medium term notes 541,635 - 541,635 -
Total investments measured at fair value 3,065,535 404,019$ 2,650,880$ 10,636$
Investments not subject to fair value hierarchy:
Money market mutual funds 11,839
CalTRUST 55,000
CAMP 58,000
Total pooled and directed investments 3,190,374$
Discrete Component Units
Sonoma Water
U.S. Treasury STRIPS 6,256$ 6,256$ -$ -$
U.S. Treasury Notes 6,710 6,710 - -
SCEIP bonds 13,059 - - 13,059
Total investments measured at fair value 26,025 12,966$ -$ 13,059$
Investments not subject to fair value hierarchy:
Money market mutual funds 8,171
Sonoma Valley County Sanitation District
Money market mutual funds 773 773 - -
Total investments 34,969$
Fiduciary Component Unit
SCERA
Non-pooled investments $ 3,692,697
COUNTY OF SONOMA, CALIFORNIA
60
NOTE 2 – CASH AND INVESTMENTS (Continued)
(n) SCERA’s ACFR - Investment and Related Notes
Pages 60 through 67 below are an excerpt from SCERA’s ACFR Cash and Short-Term Investments, Deposits and
Investments, Securities Lending, Summary of Investments, and Fair Value Measurement Notes for the year ended
December 31, 2021, and all references in the excerpt are to SCERA’s ACFR 2021 at
https://scretire.org/Microsites/SCERA/Documents/Financial/ACFR2021.pdf:
NOTES TO THE BASIC FINANCIAL STATEMENTS
61
COUNTY OF SONOMA, CALIFORNIA
62
NOTES TO THE BASIC FINANCIAL STATEMENTS
63
COUNTY OF SONOMA, CALIFORNIA
64
NOTES TO THE BASIC FINANCIAL STATEMENTS
65
COUNTY OF SONOMA, CALIFORNIA
66
NOTES TO THE BASIC FINANCIAL STATEMENTS
67
COUNTY OF SONOMA, CALIFORNIA
68
NOTE 3 – RECEIVABLES
Receivables for the fiscal year ended June 30, 2022, for the County’s individual major funds, nonmajor and internal
service funds in the aggregate are as follows:
Governmental Activities General
Human Services
Special
Revenue
Health and
Sanitation
Special
Revenue
Open Space Special
Tax Account
Special Revenue Other Funds
Internal
Service Funds Total
Accounts receivable 14,118$ 54$ 1,915$ 4,950$ 5,870$ 683$ 27,590$
Due from other governments 53,952 23,938 50,395 - 15,665 51 144,001
Lease receivable 5,810 - - - 161 - 5,971
Total 73,880$ 23,992$ 52,310$ 4,950$ 21,696$ 734$ 177,562$
Business-Type Activities Refuse Airport SCEIP Transit Other Funds Total
Accounts receivable 1,367$ 853$ 329$ 94$ 1,166$ 3,809$
Loans - 57 - - - 57
Contractual assessments - - 801 - - 801
Interest and other - 14 - - - 14
Due from other governments 18 13,913 - 2,713 52 16,696
Lease receivable 342 7,682 - - - 8,024
Long term contractual assessments - - 22,324 - - 22,324
Total 1,727$ 22,519$ 23,454$ 2,807$ 1,218$ 51,725$
Governmental and business-type receivables of $25,729 and $7,956, respectively, are not expected to be collected
within the next fiscal year. See Note 16 for information on unavailable revenues.
NOTE 4 – INTERFUND TRANSACTIONS
(a) Interfund Receivables/Payables
Interfund receivables and payables result from a time lag between the dates that 1) transactions are recorded in
the accounting system or 2) payments are made between funds. Interfund balances as of June 30, 2022 are as
follows:
Due to/from other funds :
Receivable Fund Payable Fund Amount
General Fund Human Services Special Revenue Fund 466$
Energy Independence Program 52
Internal service funds 1,592
Other governmental funds 91
Other enterprise funds 13
2,214
Human Services Special Revenue Fund Other governmental funds 995
Internal service funds Other governmental funds 200
Refuse General Fund 1
Total 3,410$
Advances to/from other funds:
Receivable Fund Payable Fund Amount
General Fund Other enterprise funds 56$
Internal service funds (1)3,744
3,800$
(1) Internal service funds advance for County's Enterprise Financial Systems will be paid off
in fiscal year end 2026.
NOTES TO THE BASIC FINANCIAL STATEMENTS
69
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
(b) Transfers
Transfers are used to fund capital projects, payments for debt service, subsidies of various County operations, and
re-allocations of special revenue. The following schedules summarize the County’s transfer activity during the
fiscal year ended June 30, 2022:
(1) Between Governmental and Business-Type Activities:
Transfer from Transfer To Amount Purpose of Funding
Governmental Activities:Business-Type Activities
General Fund Refuse Enterprise Fund 1,601$ Operations
Airport Enterprise Fund 48 Operations
Energy Independence Program 200 Operations
Transit 13 Operations
Other enterprise funds 408 Operations
2,270
Business-Type Activities Governmental Activities:
Refuse Enterprise Fund General Fund (5) Operations
Airport Enterprise Fund General Fund (8) Operations
Energy Independence Program General Fund (5) Operations
Other enterprise funds General Fund (1) Operations
(19)
Total 2,251$
(2) Between Funds within the Governmental Activities:
Transfer from Transfer To Amount Purpose of Funding
General Fund Human Services Special Revenue Fund 28,549$ Operations
Health and Sanitation Special Revenue
Fund
27,505 Operations
Internal service funds 3,925 Operations and capital projects
Other governmental funds 136,213 Operations and capital projects
196,192
Health and Sanitation Special Revenue
Fund
General Fund 340 Operations
Other governmental funds 2,833 Operations
3,173
Human Services Special Revenue
Fund
Health and Sanitation Special
Revenue Fund
566 Operations
Open Space Special Tax Account
Special Revenue Fund
Other governmental funds 18,876 Operations and debt service
Other governmental funds General Fund 18,083 Operations
Internal service funds 1,200 Operations
Other governmental funds 8,349 Operations and capital projects
27,632
Internal service funds General Fund 233 Operations
Total 246,672$
COUNTY OF SONOMA, CALIFORNIA
70
NOTE 5 – CAPITAL ASSETS
Capital asset activities for the fiscal year ended June 30, 2022 are as follows:
Governmental Activities:
Balance
June 30, 2021
(Restated) (1)Additions Retirements Transfers
Balance
June 30, 2022
Capital assets, non-depreciable:
Land 365,201$ 1,118$ (80)$ (14,832)$ 351,407$
Intangible assets 402,549 - - 14,832 417,381
Work in progress 6,874 4,693 (278) (5,909) 5,380
Construction in progress 121,520 58,446 (3,544) (48,447) 127,975
Total capital assets, non-depreciable 896,144 64,257 (3,902) (54,356) 902,143
Capital assets, depreciable
Intangible assets 45,901 131 - 4,578 50,610
Infrastructure 598,869 174 (7,328) 34,115 625,830
Buildings and improvements 453,436 - - 10,308 463,744
Land improvements 9,342 - - 2,871 12,213
Machinery and equipment 110,377 6,969 (5,116) 2,484 114,714
Right-to-use asset - building 89,097 2,521 - - 91,618
Right-to-use asset - land 2,494 - - - 2,494
Total capital assets, depreciable 1,309,516 9,795 (12,444) 54,356 1,361,223
Less accumulated depreciation for:
Intangible assets (31,606) (6,992) - - (38,598)
Infrastructure (421,875) (11,032) 7,263 - (425,644)
Buildings and improvements (185,323) (10,148) - - (195,471)
Land improvements (1,257) (619) - - (1,876)
Machinery and equipment (77,340) (8,865) 4,774 - (81,431)
Right-to-use asset - building - (10,812) - - (10,812)
Right-to-use asset - land - (223) - - (223)
Total accumulated depreciation (717,401) (48,691) 12,037 - (754,055)
Total capital assets, depreciable, net 592,115 (38,896) (407) 54,356 607,168
Total capital assets, net 1,488,259$ 25,361$ (4,309)$ -$ 1,509,311$
(1) The beginning balance was restated due to the implementation of GASB 87. See Note 20.
For the fiscal year ended June 30, 2022, the right-of-use leased building and land balances, net of accumulated
depreciation, are $80,806 and $2,271 respectively.
NOTES TO THE BASIC FINANCIAL STATEMENTS
71
NOTE 5 – CAPITAL ASSETS (Continued)
Business-type activities:
Balance
June 30, 2021 Additions Retirements Transfers
Balance
June 30, 2022
Capital assets, non-depreciable
Land 27,724$ -$ -$ (6)$ 27,718$
Construction in progress 7,473 18,093 (830) (1,085) 23,651
Total capital assets, non-depreciable 35,197 18,093 (830) (1,091) 51,369
Capital assets, depreciable
Intangible assets 12,207 - - - 12,207
Infrastructure 13,048 - - - 13,048
Land improvements 225 - - - 225
Buildings and improvements 260,087 222 - 218 260,527
Machinery and equipment 40,579 642 (2,179) 873 39,915
Total capital assets, depreciable 326,146 864 (2,179) 1,091 325,922
Less accumulated depreciation/amortization for:
Intangible assets (8,819) (501) - - (9,320)
Infrastructure (1,552) (522) - - (2,074)
Land improvements (52) (15) - - (67)
Buildings and improvements (157,026) (5,977) - - (163,003)
Machinery and equipment (27,087) (2,612) 2,150 - (27,549)
Total accumulated depreciation (194,536) (9,627) 2,150 - (202,013)
Total capital assets, depreciable, net 131,610 (8,763) (29) 1,091 123,909
Total capital assets, net 166,807$ 9,330$ (859)$ -$ 175,278$
Discrete Component Units
Sonoma Water
Balance
June 30, 2021 Additions Retirements Transfers
Balance
June 30, 2022
Capital assets, non-depreciable:
Intangible assets 108,815$ -$ -$ 1,335$ 110,150$
Land 12,621 - - - 12,621
Intangible work in progress 1,625 1,509 - - 3,134
Construction in progress 21,459 17,779 (1,077) (8,662) 29,499
Total capital assets, non-depreciable 144,520 19,288 (1,077) (7,327) 155,404
Capital assets, depreciable:
Intangible assets 5,039 - - (1,335) 3,704
Infrastructure 331,996 - - 8,662 340,658
Land improvements 4,362 - - - 4,362
Buildings and improvements 56,422 - - - 56,422
Machinery and equipment 16,525 692 (492) - 16,725
Total capital assets, depreciable 414,344 692 (492) 7,327 421,871
Less accumulated depreciation/amortization for:
Intangible assets (2,295) (191) - - (2,486)
Infrastructure (187,612) (9,074) - - (196,686)
Land and improvements (2,804) (199) - - (3,003)
Buildings and improvements (20,415) (1,637) - - (22,052)
Machinery and equipment (9,823) (1,232) 430 - (10,625)
Total accumulated depreciation (222,949) (12,333) 430 - (234,852)
Total capital assets, depreciable, net 191,395 (11,641) (62) 7,327 187,019
Total capital assets, net 335,915$ 7,647$ (1,139)$ -$ 342,423$
COUNTY OF SONOMA, CALIFORNIA
72
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation/Amortization Expense
Depreciation/amortization expense charged for the fiscal year ended June 30, 2022 are as follows:
Governmental Activities:
General government $ 10,642
Public protection 10,531
Public ways and facilities 11,203
Health and sanitation 5,647
Public assistance 5,600
Education 46
Recreation and cultural services 2,625
Depreciation on Heavy Equipment Replacement ISF capital assets 817
Depreciation on Enterprise Resource Planning (ERP) ISF capital assets 1,580
Total depreciation/amortization expense $ 48,691
Business-Type Activities:
Refuse $ 1,153
Airport 3,723
Energy Independence Program 29
Transit 3,552
Fair 831
Marinas 134
Other Districts 205
Total depreciation/amortization expense $ 9,627
NOTE 6 – DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources for the fiscal year ended June 30, 2022, for the County’s individual major funds,
non-major and internal service funds in the aggregate are as follows:
Governmental Activities
Internal Service
Funds Other Funds Total
Deferred charge on refunding (1)-$ 1,659$ 1,659$
Deferred amounts related to pension 180,660 1,116 181,776
Deferred amounts related to OPEB 30,146 408 30,554
Total 210,806$ 3,183$ 213,989$
Business-Type Activities Refuse Airport Transit Other Funds Total
Deferred amounts related to pension 517$ 559$ 174$ 506$ 1,756$
Deferred amounts related to OPEB 200 125 41 262 628
Total 717$ 684$ 215$ 768$ 2,384$
(1) Deferred charge on refunding is the difference in the carrying value of refunded debt and its reacquisition
price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
For additional information on deferred amounts related to pensions see Note 11, and for deferred amounts
related to OPEB see Note 12.
NOTES TO THE BASIC FINANCIAL STATEMENTS
73
NOTE 7 – PAYABLES
Accounts payable and accrued liabilities for the fiscal year ended June 30, 2022, for the County’s individual major
funds, nonmajor and internal service funds in the aggregate are as follows:
Governmental Activities General
Human Services
Special Revenue
Health and
Sanitation
Special Revenue
Other
Funds
Internal
Service
Funds Total
Total accounts payable 43,512$ 1,187$ 19,301$ 7,352$ 4,491$ 75,843$
Business-Type Activities Refuse Airport SCEIP Transit Other Funds Total
Total accounts payable 350$ 3,733$ 322$ 1,395$ 976$ 6,776$
NOTE 8 – ADVANCES FROM GRANTORS AND THIRD PARTIES
Under both the modified accrual and accrual basis of accounting, revenue may be recognized only when earned.
Therefore, governmental and enterprise funds report advances from grantors and third parties in connection with
resources that have been received, but not yet earned, as a liability. At June 30, 2022, advances from grantors and
third parties are as follows:
Governmental Activities General
Human Services
Special Revenue
Health and
Sanitation Special
Revenue Other Funds Total
Total advances from grantors and
third parties 70,307$ 3,976$ 7,708$ 145$ 82,136$
Business-Type Activities Transit Total
Total advances from grantors and
third parties 1,621$ 1,621$
COUNTY OF SONOMA, CALIFORNIA
74
NOTE 9 – LEASES
Lessor:
As of June 30, 2022, the County was the lessor for 22 noncancelable leases comprised of 12 building space leases,
9 land leases, and one easement. The lease terms range from 18 to 420 months for building leases, 78 to 480
months for land leases, and 57 months for the easement lease. Monthly payments include both fixed and variable
payments. Variable payments are adjusted based on the Consumer Price Index (CPI). The County recognized $755
in lease revenue and $246 in interest revenue during the current fiscal year. As of June 30, 2022, the receivables
for lease payments and deferred inflow of resources were $13,995 and $13,867, respectively. Lease interest rates
range from 0.39% to 2.58%.
The future principal and interest lease payments receivable as of June 30, 2022 are as follows:
Governmental Activities
Fiscal Year Ending
June 30,
Principal
Payments
Interest
Payments Total Receivable
2023 305$ 122$ 427$
2024 322 117 439
2025 339 112 451
2026 326 104 430
2027 343 98 441
2028 - 2032 1,480 393 1,873
2033 - 2037 1,309 253 1,562
2038 - 2042 1,504 87 1,591
2043 - 2047 32 3 35
2048 - 2052 11 0 11
5,971$ 1,289$ 7,260$
Business-Type Activities
Fiscal Year Ending
June 30,
Principal
Payments
Interest
Payments Total Receivable
2023 370$ 172$ 542$
2024 350 165 515
2025 350 159 509
2026 354 153 507
2027 346 146 492
2028 - 2032 1,483 638 2,121
2033 - 2037 1,058 504 1,562
2038 - 2042 1,079 381 1,460
2043 - 2047 1,081 249 1,330
2048 - 2052 814 134 948
2053 - 2057 630 42 672
2058 - 2062 109 4 113
8,024$ 2,747$ 10,771$
Lessee:
As of June 30, 2022 the County was the lessee for 48 noncancellable leases comprised of 41 building space leases
and 7 land leases. The lease terms range from 19 to 400 months for building leases and 25 to 218 months for land
leases. Monthly payments include both fixed and variable payments. Variable payments are adjusted based on CPI.
The initial lease liability was recorded in the amount of $94,112 during the current fiscal year. At June 30, 2022, the
value of the lease liability was $84,892. Lease interest rates range from 0.32% to 2.58%.
NOTES TO THE BASIC FINANCIAL STATEMENTS
75
NOTE 9 – LEASES (Continued)
The future principal and interest lease payments as of June 30, 2022 are as follows:
Sale-Leaseback:
During fiscal year ended June 30, 2022, the County sold the Chanate campus which included leaseback agreements
for the Public Health Lab, Morgue, and Coroner’s Office. These building leases are for 4 years with two 6-month
options to extend.
Governmental Activities (1)
Fiscal Year Ending
June 30,
Principal
Payments
Interest
Payments Total Payments
2023 9,872$ 1,385$ 11,257$
2024 10,063 1,251 11,314
2025 9,120 1,117 10,237
2026 8,656 989 9,645
2027 7,905 861 8,766
2028 - 2032 22,145 2,927 25,072
2033 - 2037 9,475 1,459 10,934
2038 - 2042 5,468 527 5,995
2043 - 2047 1,448 172 1,620
2048 - 2052 470 67 537
2053 - 2056 270 9 279
84,892$ 10,764$ 95,656$
(1) Internal Service Funds (ISF) predominantly serve governmental funds, therefore ISF
future principal and interest are included in the above totals for governmental activities
COUNTY OF SONOMA, CALIFORNIA
76
NOTE 10 – LONG-TERM LIABILITIES
(a) Changes in Long-Term Liabilities
The following is a summary of long-term liabilities activity for the fiscal year ended June 30, 2022:
Governmental Activities
Balance
June 30, 2021
Restated (2)Additions Retirements
Balance
June 30, 2022
Due Within
One Year
Compensated absences $ 40,763 $ 38,491 $ (38,808) $ 40,446 $ 26,417
Self-insurance (1) 56,790 23,061 (19,223) 60,628 13,389
Certificates of participation -
direct borrowing 11,252 - (2,063) 9,189 2,143
Bonds payable 83,461 - (9,830) 73,631 9,425
Pension obligation bonds -
direct placement (1) 286,690 - (38,810) 247,880 42,935
CDC Note 840 - (840) - -
Financed Purchases 3,380 - (473) 2,907 491
Lease Liabilities 91,591 2,521 (9,220) 84,892 9,872
Contracts payable 3,972 - (662) 3,310 662
Net pension liability (1) 152,944 - (152,944) - -
Net OPEB liability (1) 184,512 36,331 (72,660) 148,183 -
Subtotal long-term liabilities 916,195 100,404 (345,533) 671,066 105,334
Unamortized issuance premiums 9,826 - (1,049) 8,777 -
Total long-term liabilities $ 926,021 $ 100,404 $ (346,582) $ 679,843 $ 105,334
(1) Internal Service Funds (ISF) predominantly serve governmental funds, therefore ISF long-term liabilities
including self-insurance, pension, pension obligation bonds and OPEB are included in the above totals for
governmental activities and 'liquidated in those funds. Compensated absences are primarily liquidated by
the General Fund.
(2) The beginning balance was restated due to the implementation of GASB 87. See Note 20.
Business-type Activities
Balance
June 30, 2021 Additions Retirements
Balance
June 30, 2022
Due Within
One Year
Compensated absences $ 616 $ 161 $ (183) $ 594 $ 425
Landfill closure and postclosure 8,626 354 (1,216) 7,764 -
Advances from other governments -
direct borrowing 1,632 - (365) 1,267 380
Energy bonds payable - direct
placement 23,356 5,067 (4,728) 23,695 1,371
Notes payable 996 477 (996) 477 477
Loans payable - direct borrowing 16,150 - (467) 15,683 477
Net pension liability 2,672 - (1,944) 728 -
Net OPEB liability 3,330 399 (1,197) 2,532 -
Total long-term liabilities $ 57,378 $ 6,458 $ (11,096) $ 52,740 $ 3,130
NOTES TO THE BASIC FINANCIAL STATEMENTS
77
NOTE 10 – LONG-TERM LIABILITIES (Continued)
Discrete Component Units (1)
Sonoma Water
Balance
June 30, 2021 Additions Retirements
Balance
June 30, 2022
Due Within
One Year
Compensated absences $ 3,395 $ 2,505 $ (2,372) $ 3,528 $ 1,990
Pollution remediation 150 - (2) 148 -
Advances from other governments -
direct borrowing 6,573 - (863) 5,710 441
Revenue and general obligation
bonds - direct placement 2,306 - (361) 1,945 372
Revenue bonds 39,240 19,680 (9,435) 49,485 1,205
Financed purchase obligations 1,248 - (483) 765 504
Contracts payable 69,925 - (4,030) 65,895 4,160
Net pension liability 12,140 - (12,140) - -
Net OPEB liability 14,763 (439) (2,149) 12,175 -
Subtotal long-term liabilities 149,740 21,746 (31,835) 139,651 8,672
Unamortized issuance premiums 2,474 1,928 (486) 3,916 -
Total long-term liabilities $ 152,214 $ 23,674 $ (32,321) $ 143,567 $ 8,672
(1) Community Development Commission's long term-liabilities are presented in its separately audited financial
statements, available at the Community Development Commission office.
(b) Long-term obligations outstanding
Individual issues of certificates of participation, bonds, loans, and financed purchase obligations outstanding at
June 30, 2022 are as follows:
Governmental Activities Maturity
Interest
Rates/
Ranges
Annual
Principal
Installments
Original
Issue
Amount
Outstanding
Balance
June 30, 2022
Certificates of Participation from direct borrowing:
2010 Administration Building COP 2024 2.89-3.8%$ 71-138 1,475$ $ 209
2017 General Services Energy 2026 2.45%660-1,080 17,225 8,980
9,189
Bonds Payable:
2015 Series A Agricultural Preservation and Open
Space (Measure F)2024 2.00–5.00%0-7,010 43,335 13,400
Unamortized issuance premium 1,565
Tobacco Settlement - Bonds Series 2020 2049 1.38-5.00%1,275-3,133 66,636 60,231
Unamortized issuance premium 7,212
82,408
Pension Obligation Bonds from direct placement:
2003 Series A 2022 1.55-5.07%7,685-25,970 210,200 7,685
2003 Series B 2022 1.55-5.07%0-21,000 21,000 21,000
2010 Series 2030 2.12-6.0%0-38,030 289,335 219,195
247,880
Financed Purchase Obligations
Various 2029 3.62-6.77%26-245 7,009 2,907
Total long-term obligations 342,384$
COUNTY OF SONOMA, CALIFORNIA
78
NOTE 10 – LONG-TERM LIABILITIES (Continued)
Business-type Activities Maturity
Interest
Rates/
Ranges
Annual
Principal
Installments
Original
Issue
Amount
Outstanding
Balance
June 30, 2022
Advances from other governments from direct borrowing:
California Department of Boating and Waterways to
Spud Point Marina 2023 4.50% $ 192-356 $ 6,000 $ 356
Various state and local agencies
for the County's other enterprise funds 2053 2.75-3.41% 4-213 4,172 911
1,267
Bonds Payable from direct placement:
Energy Independence Program 2037 3.00% 93-2,926 99,584 23,695
Notes Payable:
Sonoma County Fair 2021 3.00%100 500 477
Loans Payable from direct borrowing:
Russian River Utility Co., Inc.2023 0.00%2-8 42 2
Pacific Gas & Electric Loan 2025 0.00%0-2 20 5
iBank 2048 3.52-3.61%103-716 17,000 15,676
15,683
Total long-term obligations $ 41,122
Discrete Component Units
Sonoma Water Maturity
Interest
Rates/
Ranges
Annual
Principal
Installments
Original
Issue
Amount
Outstanding
Balance
June 30, 2022
Advances from other governments from direct borrowing:
California Department of Water Resources 2028 2.79%$ 653-1,019 15,857$ 5,710$
Revenue and General Obligation Bonds from direct placement:
2017 Water and Wastewater Revenue Bonds 2027 2.33%333-409 3,690 1,945
Revenue Bonds:
2019A Water Revenue Bonds 2039 3.0-5.0%340-770 11,010 10,310
2015A & AT Water Revenue Bonds 2040 2.30-5.2%0-1,335 23,865 19,495
2022A Water Revenue Refunding Bonds 2048 4.0-5.0%475-1,210 19,680 19,680
49,485
Contracts payable 2034 3.23%2,934-6,286 102,371 65,895
Financed purchase obligations 2023 4.30%260-505 5,835 765
Total long-term obligations 123,800$ (c) Debt Related Disclosures
Additional information related to debt including unused lines of credit; assets pledged as collateral for the debt;
and terms specified in debt agreements related to significant events of default with finance-related consequences,
significant termination events with finance-related consequences, and significant subjective acceleration clauses as
required by GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements are noted below:
Certificates of Participation (COP) – The County issued the 2010 Administration Building COP, as a direct
borrowing, to provide financing for acquisition, construction, rehabilitation and building improvements.
The County refunded the 2009 Energy COP, as a direct borrowing in March 2017 to defease outstanding debt of
$16,515, issuing new debt of $17,225 to be fully paid by the end of 2026. The proceeds provided funding for a
comprehensive energy project.
NOTES TO THE BASIC FINANCIAL STATEMENTS
79
NOTE 10 – LONG-TERM LIABILITIES (Continued)
Debt service payments for the COPs are funded by legally available resources of the County and are fully
collateralized by the facilities financed with the proceeds of the certificates of participation. The COP agreements
contain provisions, that in the event of default the interest rate increases on the outstanding balance. In the event
of default or termination, the County would be responsible for all costs incurred.
Bonds Payable - In 2015, $43,335 in Open Space revenue bonds were issued with the proceeds used to refund the
Open Space 2007A bonds. Bond proceeds fund the acquisition and preservation of open space in the County.
The bonds are payable by legally available resources of the Open Space Special Tax Account (OSSTA) and are fully
collateralized by the Measure F quarter cent sales tax revenue and assets financed with the proceeds. For the year
ended June 30, 2022, principal and interest paid were $7,502. An event of default would require the immediate
liquidation of the repurchased securities, if any, and the County would be required to transfer to the Trustee all
revenues held with the County.
The Sonoma County Securitization Corporation (Corporation) borrowed, as direct borrowing, from the California
County Tobacco Securitization Agency the proceeds of the Series 2005 Tobacco Settlement Asset-Backed
Refunding Bonds to provide additional resources and to refund the Series 2002 A and B Tobacco Settlement Asset-
Backed Bonds issued by the Agency. The Corporation has pledged all revenue from the tobacco Master Settlement
Agreement (MSA) for the repayment of the Bonds. The MSA was originally entered into by the four major cigarette
manufacturers, 46 states and six other U.S. jurisdictions (Settling States) to provide state governments (including
California) with compensation for smoking related medical costs and to help reduce smoking in the United States.
There is no limit to the annual settlement payments; they are perpetual. In addition, a Memorandum of
Understanding (MOU) and a supplemental agreement (ARIMOU) was agreed to by the State of California and all
California counties and four California cities, granting those California municipalities the right to receive tobacco
settlement allocation payments, (also known as Tobacco Settlement Revenues (TSRs)). Under the terms of the
tobacco bond indenture, the bonds are payable solely from certain funds held under the indenture, including TSRs
and earnings on such funds. However, actual payments on the bonds depend on the amount of TSRs received by
the County. The amount of these TSRs is affected by cigarette consumption and the financial capability of the
participating manufacturers. There are a number of risks associated with the amount of actual TSRs the County
receives each year, including a decline in cigarette consumption materially beyond forecasted levels, and other
future adjustments to the calculation of the TSRs. If actual events deviate from one or more of the assumptions
underlying the Base Case, the amount of TSRs available to make Turbo Redemption, interest, and principal
payments will be affected. No assurance can be given that the projected payments and Turbo Redemptions will be
realized.
On September 30, 2020, the Sonoma County Securitization Corporation issued new debt of $66,636 to refund and
defease the remaining balance of the Tobacco Settlement Asset-Backed Refunding Bonds (Sonoma County
Securitization Corporation) Series 2005 on October 30, 2020 for $66,485.
The Sonoma County Securitization Corporation has pledged all revenues received from the tobacco Master
Settlement Agreement (MSA) to repay the outstanding principal of $60,231 for the Tobacco Settlement Bonds,
Series 2020. Total principal and interest remaining on the bonds is $99,783 through 2049. During the fiscal year
ended June 30, 2022, principal and interest paid on the Series 2020 Tobacco Settlement Bonds totaled $5,232.
Based on the above information, the County presents the debt service to maturity assuming no further turbo
payments.
COUNTY OF SONOMA, CALIFORNIA
80
NOTE 10 – LONG-TERM LIABILITIES (Continued)
Pension Obligation Bonds – Pension obligation bonds were issued as direct placement debt in 2003 and 2010 to
fund the County’s unfunded pension liability.
Debt service payments are funded by charges to County departments based on the proportionate share of salaries
and benefit expenses. In the event of default, the County treasury would be required to transfer funds sufficient to
pay the principal and interest due and for expenses of the Trustee incurred in the performance of its powers and
duties.
Financed Purchase Obligations – The County has entered financed lease obligations to acquire various machinery
and equipment. Debt service payments are funded by legally available resources. In the event of default or
termination all current amounts are immediately due and payable. The Lessor has the right to retake possession of
the equipment.
Energy Bonds Payable – The Sonoma County Public Financing Authority sold increments of special Contractual
Assessment Revenue Bonds to the County’s Treasury and to Sonoma Water as direct placement debt. The
proceeds of the bonds were lent to the Energy Independence Program major enterprise fund to finance the
County’s Energy Independence program.
Loans and Advances – Advances from other governments represent direct borrowings: (a) loans from the
California Department of Boating and Waterways and the California Coastal Conservancy and (b) loans from
various state and local agencies for which debt service payments are funded by the operations of the related fund
or activity. Real and personal property and net revenues are irrevocably pledged as security for these loans. In the
event of default the lenders may declare all principal and accrued interest immediately due and payable.
Sonoma Water Agency’s detailed disclosures on debt, as required by GASB Statement No. 88, Certain Disclosures
Related to Debt, including Direct Borrowings and Direct Placements, are reported in the Sonoma Water Agency
Annual Comprehensive Financial Report (ACFR) available at https://www.sonomawater.org/basic-financial-
statements.
(d) Arbitrage
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt
bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at
an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can
be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service
(IRS) at least every five years. During the current year, the County performed calculations of excess investment
earnings on various bonds and financings, and at June 30, 2022, does not expect to incur a liability.
NOTES TO THE BASIC FINANCIAL STATEMENTS
81
NOTE 10 – LONG-TERM LIABILITIES (Continued)
(e) Debt service requirements
Schedule of debt payment requirements for long-term obligations outstanding to maturity at June 30, 2022
follows:
Governmental Activities
Certificates of Participation
from direct borrowing Bonds Payable
Pension Obligation Bonds
from direct placement
Year ending June 30:Principal Interest Principal Interest Principal Interest
2023 $ 2,143 $ 217 $ 9,425 $ 2,494 $ 42,935 $ 13,457
2024 2,126 162 8,905 2,049 21,065 11,665
2025 2,105 109 2,625 1,763 23,935 10,315
2026 2,155 56 2,955 1,632 27,045 8,785
2027 660 8 3,085 1,484 30,420 7,061
2028-2032 - - 13,248 9,115 102,480 9,001
2033-2037 - - 12,034 8,662 - -
2038-2042 - - 11,617 8,241 - -
2043-2047 - - 8,512 4,664 - -
2048 - - 1,225 102 - -
Subtotals 9,189 552 73,631 40,206 247,880 60,284
Issuance premiums - - 8,777 - - -
Total $ 9,189 $ 552 $ 82,408 $ 40,206 $ 247,880 $ 60,284
Year ending June 30:Principal Interest
2023 491 106
2024 510 88
2025 531 69
2026 519 50
2027 445 30
2028-2029 411 19
Total $ 2,907 $ 362
Financed Purchase
Obligations
Business-type
Activities Loans Payable
from direct borrowings
Advances From Other
Governments from
direct borrowing
Notes
Payable
Year ending June 30:Principal Interest Principal Interest Principal Interest Principal
2023 $ 477 $ 595 $ 380 $ 41 $ 1,371 1,425$ $ 477
2024 492 576 25 24 1,544 1,459 -
2025 525 557 26 23 1,632 1,353 -
2026 507 537 27 23 1,729 1,241 -
2027 544 649 27 22 1,839 1,122 -
2028-2032 3,021 2,521 127 99 8,937 3,649 -
2033-2037 3,595 1,618 124 83 3,811 1,515 -
2038-2042 4,278 864 142 65 2,693 456 -
2043-2047 2,244 203 163 45 139 3 -
2048-2052 - - 185 21 - - -
2053 - - 41 1 - - -
Total $ 15,683 $ 8,120 $ 1,267 $ 447 $ 23,695 $ 12,223 $ 477
Energy Bonds Payable
COUNTY OF SONOMA, CALIFORNIA
82
NOTE 10 – LONG-TERM LIABILITIES (Continued)
Discrete Component
Units
Sonoma Water
Year ending June 30:Principal Interest Principal Interest Principal Interest
2023 $ 4,160 $ 2,125 $ 372 $ 41 $ 1,205 $ 1,538
2024 4,295 1,991 377 32 2,085 1,865
2025 4,433 1,852 391 23 2,190 1,758
2026 4,576 1,709 395 14 2,300 1,646
2027 4,724 1,562 410 14 2,410 1,542
2028-2032 26,004 5,424 - - 13,595 6,120
2033-2037 17,703 1,154 - - 12,225 3,572
2038-2042 - - - - 8,655 1,624
2043-2047 - - - - 3,935 583
2048 - - - - 885 18
Subtotals 65,895 15,817 1,945 124 49,485 20,266
Issuance premiums - - - - 3,916 -
Total 65,895$ 15,817$ 1,945$ 124$ 53,401$ 20,266$
Year ending June 30:Principal Interest Principal Interest
2023 $ 504 $ 27 $ 441 $ 68
2024 261 6 899 141
2025 - - 925 116
2026 - - 951 90
2027 - - 977 63
2028-2029 - - 1,517 43
Total 765$ 33$ 5,710$ 521$
Revenue and General Obligation
Bonds from direct placement Revenue Bonds
Financed Purchase
Obligations
Advances from other Governments
from direct borrowing
Long-term Contracts
NOTES TO THE BASIC FINANCIAL STATEMENTS
83
NOTE 11 – EMPLOYEES’ RETIREMENT PLANS
(a) Plan Description
The Sonoma County Employees’ Retirement Association (SCERA) was established January 1, 1946, under the
provisions of the 1937 County Employees Retirement Act. SCERA is a cost-sharing, multiple-employer Defined
Benefit Pension Plan (Plan), legally separate entity from the County.
All General and Safety employees hired on or after January 1, 2013, with the exception of employees who are
eligible for reciprocity with another qualified California retirement system, are part of a tier called Plan B. General
and Safety employees hired before January 1, 2013 are part of the original Plan called Plan A.
Plan members include employees in a permanent position of at least half time for employees of the County of
Sonoma, Sonoma County Transportation Authority, Sonoma Valley Fire District, and Superior Courts of California.
Plan members are classified as either General or Safety (e.g., eligible Sheriff, Fire, and Probation Department
employees). Membership becomes effective on the first day of service. The Plan provides benefits as defined by
the law upon retirement, death, or disability of members and may be amended by the Board of Supervisors and
then shall be implemented by the Board of Retirement.
At December 31, 2021, the date of the most recent actuarial valuation, Plan membership consisted of the
following:
Retirees and beneficiaries currently receiving benefits 5,478
Current active members 4,066
Inactive vested members 1,569
Total 11,113
SCERA issues a financial report available to the public that includes financial statements and required
supplementary information for the Plan, available upon request from SCERA at 433 Aviation Boulevard, Santa
Rosa, California, 95403, or can be found online at www.scretire.org.
(b) Benefits Provided
Benefit Tiers
The tiers and the basic provisions are listed in the following table:
Tier Name Membership Effective Date Basic Provisions Final Average
Plan A
General Membership Before January 1, 2013 3% at 60 Highest 1-year
Safety Membership Before January 1, 2013 3% at 50 Highest 1-year
Plan B
General Membership January 1, 2013 2.5% at 67 Highest 3-year
Safety Membership January 1, 2013 2.7% at 57 Highest 3-year
Vesting
Upon completing five years of creditable service, employees have non-revocable rights to receive benefits
attributable to employer's contributions, provided employee contributions have not been withdrawn. Plan A
members are eligible to retire at age 50 with ten years of service from the date of membership or thirty years of
service (safety members-twenty years of service) regardless of age. Plan B General members are eligible to retire
at age 52 with five years of service; Plan B Safety members are eligible to retire at age 50 with five years of service.
Members in all plans are eligible to retire at age 70, regardless of years of service.
COUNTY OF SONOMA, CALIFORNIA
84
NOTE 11 – EMPLOYEES’ RETIREMENT PLANS (Continued)
Benefit Payments
Benefits are based upon a combination of age, years of service, final compensation and the benefit payment
option selected by the member. For Plan A members, final compensation is defined as the highest 12 consecutive
months of compensation earnable. The maximum benefit payable to a member or beneficiary is 100% of the final
compensation. For Plan B members, final compensation is based on the highest 36 months of pensionable
compensation. Additionally Plan B members are limited in the amount of compensation used to calculate a benefit
to 100% of the Social Security taxable wage base limit.
Cost of Living Adjustments
SCERA has approved, on an ad hoc basis, several one-time, post-retirement cost of living increases (COLAs), the last
of which was in 2008. These cost of living increases have been fully funded by transfers from the Undistributed
Earnings Reserve, Cost of Living Future Reserve, or Interest Fluctuation Reserve into the Cost of Living Current
Reserve account.
Death Benefit – Prior to Retirement
In addition to the return of contributions, a death benefit is payable to the member's beneficiary or estate equal to
one month's salary for each completed year of service under the retirement system (based on the final
compensation preceding the member's death), but not to exceed 6 months of salary. If a member dies while
eligible for service retirement or non-service connected disability, his or her spouse/domestic partner receives 60%
of the allowance that the member would have received for retirement on the day of the member’s death. If a
member dies in the performance of duty, the spouse/domestic partner will receive a lifetime benefit equal to 50%
of the member's highest average compensation or a service retirement benefit, whichever is higher.
Death Benefit – After Retirement
As part of the retirement process, members are required to select among several options for benefits continuation
upon the member's death. For married/domestic partner retirees, the most common retirement option is the
unmodified option, which pays the retiree's eligible spouse or domestic partner a lifetime benefit equal to 60% of
the benefit the retiree was receiving.
Disability Benefit
Members with 5 years of service, regardless of age, are eligible for non-service connected disability. The benefit for
Plan A members is 1.8% of final compensation for each year of service; and the benefit for Plan B members is 1.5%
of final compensation for each year of service. The maximum benefit for both Plans is 1/3 of final compensation.
All employees, regardless of years of service are eligible for service connected disability. The benefit of a service
connected disability is the greater of 50% of the highest average compensation or service retirement benefit.
Return of Contributions
If a member should resign or die before becoming eligible for retirement, his or her contribution plus interest may
be refunded. In lieu of receiving a return of contributions, a member may elect to leave his or her contributions on
deposit. Members with at least five years of service may choose to receive a deferred vested benefit when eligible
for retirement.
NOTES TO THE BASIC FINANCIAL STATEMENTS
85
NOTE 11 – EMPLOYEES’ RETIREMENT PLANS (Continued)
(c) Actuarial Methods and Assumptions
The table below summarizes the actuarial methods and assumptions of Plan A and Plan B for the actuarial
valuation and measurement date of December 31, 2021:
Actuarial cost method Entry Age
Asset valuation method 5 –year smoothed market value
Actuarial assumptions:
Investment rate of return 6.75%
Projected salary increases - General 3.55% to 8.00%
Projected salary increases - Safety 4.00% to 10.50%
Inflation 2.50%
Cost-of-living adjustments None
In the December 31, 2021 actuarial valuation, Plan A used the entry age normal cost method. Under the entry age
normal cost method, the actuarial present value of the projected benefits of each individual included in the
actuarial valuation is allocated on a level basis over the working lifetime of the individual. Plan B uses a single rate
methodology, regardless of entry age, where members pay 50% of the normal cost. The actuarial value of assets
was determined using techniques that spread the effects of short-term volatility in the market value of
investments over a 5-year period. The funding policy adopted by the Board of Retirement is to amortize the
unfunded actuarial accrued liability (UAAL) at December 31, 2007 as well as any new UAAL established on each
subsequent actuarial valuation after the December 31, 2007 valuation over separate 20-year declining periods. The
UAAL established as a result of including as pensionable salary a cash allowance of $3.45 per hour for General-
County and Safety-County members is amortized over a 20-year declining period, with 6 years remaining as of
December 31, 2021.
(d) Funding Policy
The contribution requirements of Plan members and the County are determined by an independent actuary,
approved by the SCERA Board of Retirement, and adopted by the Board of Supervisors. The contribution rates for
the fiscal year ended June 30, 2022 were based on the Plan’s valuations dated December 31, 2019 and December
31, 2020. The contribution rates determined in each actuarial valuation take effect at the beginning of the fiscal
year starting at least twelve months after the beginning of the valuation year, except when significant benefit or
actuarial assumption changes occur. Plan A members are required to contribute between approximately 10% and
15% of their annual covered salary, and the member’s particular rate is based upon age at entry into the system.
Plan B members are required to contribute a flat rate as calculated by the actuary. The County is required to
contribute the remaining amounts necessary to finance the coverage of employees through periodic contributions
at actuarially determined rates. Employer and member contributions are funded and recognized through the
County and District payroll systems via employer benefit payments and employee deductions. For the fiscal year
ended June 30, 2022, the County contributed $68,329 or approximately 20.33% of covered payroll.
(e) Pension Assets/Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2022, the County reported a net pension asset of $62,867 and a net pension liability of $728 for the
Sonoma County Fair and Exposition, Inc. (the Fair) for its proportionate share of the net pension asset/liability, and
discrete component units reported a net pension asset of $5,839 for their proportionate share. The net pension
asset/liability was measured as of December 31, 2021 and the total pension asset/liability used to calculate the net
pension asset/liability was determined by an actuarial valuation as of that date. The County’s proportion of the net
pension asset/liability was based on a projection of the County’s long-term share of contributions to the pension
plan relative to the projected contributions of all Plan participants, actuarially determined. At December 31, 2021,
the County’s proportion was 101.35%, a 19.76% increase compared to December 31, 2020, and the discrete
component unit’s proportion was 9.52%, an increase of 2.29%, compared to December 31, 2020.
COUNTY OF SONOMA, CALIFORNIA
86
NOTE 11 – EMPLOYEES’ RETIREMENT PLANS (Continued)
For the year ended June 30, 2022, the County recognized a pension expense credit of ($10,558) and the discrete
component units recognized a pension expense credit of ($617). At June 30, 2022, the County and discrete
component units reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows of
Resources
Deferred Inflows of
Resources
Governmental Activities
Differences between expected and actual experience $ 8,091 $ (19,389)
Changes in assumptions 70,293 -
Net difference between projected and actual earnings on plan investments - (298,099)
Changes in proportion and differences between County contributions and proportionate
share of contributions 40,055 (8,209)
Contributions subsequent to the measurement date 63,337 -
Total Governnmental Activities 181,776 (325,697)
Business-Type Activities
Differences between expected and actual experience 100 (288)
Changes in assumptions 611 -
Net difference between projected and actual earnings on plan investments - (3,026)
Changes in proportion and differences between County contributions and proportionate
share of contributions 517 (371)
Contributions subsequent to the measurement date 528 -
Total Business-Type Activities 1,756 (3,685)
Total Primary Government Total $ 183,532 $ (329,382)
Discrete Component Units
Differences between expected and actual experience $ 547 $ (2,134)
Changes in assumptions 5,690 -
Net difference between projected and actual earnings on plan investments - (27,067)
Changes in proportion and differences between employer contributions and
proportionate share of contributions 4,810 (236)
Contributions subsequent to the measurement date 2,558 -
Total $ 13,605 $ (29,437)
Deferred outflows of resources and deferred inflows of resources above represent the unamortized portion of
changes to net pension liability to be recognized in future periods in a systematic and rational manner.
Contributions made subsequent to the measurement date are recorded as deferred outflows of resources related
to pensions and will be recognized as a reduction of net pension liability in the year ended June 30, 2023 totaling
$31,419 for the County and $2,558 for discrete component units. The County has prepayments of future year
contributions on deposit with SCERA of $32,446 at June 30, 2022. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Fiscal Year Ending Governmental Business-Type Total Discrete
June 30,Activities (1)Activities (1)Primary Government (1)Component Units (1)
2023 $ (26,747) $ (368) $ (27,115) $ (2,170)
2024 (79,018) (851) (79,869) (7,051)
2025 (38,857) (634) (39,491) (3,390)
2026 (62,636) (604) (63,240) (5,779)
Total $ (207,258) $ (2,457) $ (209,715) $ (18,390)
(1) Brackets indicate negative expense
NOTES TO THE BASIC FINANCIAL STATEMENTS
87
NOTE 11 – EMPLOYEES’ RETIREMENT PLANS (Continued)
(f) Discount Rate
The discount rates used to measure the total pension liability were 6.75% and 7.00% as of December 31, 2021 and
December 31, 2020, respectively. The projection of cash flows used to determine the discount rate assumed plan
member contributions will be made at the current contribution rate and that employer contributions will be made
at rates equal to the actuarially determined contribution rates. For this purpose, only employee and employer
contributions that are intended to fund benefits of current plan members and their beneficiaries are included.
Projected employer contributions that are intended to fund the service costs of future plan members and their
beneficiaries, as well as projected contributions from future plan members, are not included. Based on those
assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future
benefit payments for current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability as of
both December 31, 2021 and 2020.
The long-term expected rate of return on assets was determined using a building block approach in which an
expected future real rate of return is developed for each major asset class. These expected rates are combined to
produce the long-term expected rate of return by weighting the expected future rates of return by the target asset
allocation percentage adjusted by inflation and a risk margin. The target allocation and projected arithmetic real
rates of return, after deducting inflation, but before investment expenses, used in the derivation of the long-term
expected investment rate of return assumption as of December 31, 2021 are summarized in the table below:
Asset Class
Large Cap Equity 16.50 %5.35 %
Small Cap Equity 5.00 %6.55 %
Developed International Equity 14.88 %6.31 %
Global Equity 18.00 %6.28 %
Emerging Market Equity 6.62 %8.47 %
Core Bonds 16.00 %0.70 %
Bank Loan 3.00 %2.43 %
Real Estate 10.00 %4.89 %
Infrastructure 5.00 %6.05 %
Farmland 5.00 %5.90 %
Total 100.00 %
Long-term Expected
Arithmetic Real
Rate of ReturnTarget Allocation
(g) Sensitivity of the Proportionate Share of the Net Pension Liability (Asset)
The following presents the governmental activities, business-type activities and discrete component units
proportionate share of the net pension liability (asset) calculated using the discount rate of 6.75%, as well as what
the proportionate share of the net pension liability (asset) would be if calculated using a discount rate that is 1-
percentage point lower (5.75%) or 1-percentage point higher (7.75%) than the current rate.
1% Decrease Current Discount Rate 1% Increase
(5.75%)(6.75%)(7.75%)
Governmental Activities $ 297,521 $ (62,270) $ (361,150)
Business-Type Activities * 4,156 131 (3,213)
Total Primary Government 301,677 (62,139) (364,363)
Discrete Component Units 19,500 (5,839) (26,887)
Total 321,177$ (67,978)$ (391,250)$
* Business-Type Activities include the following components:
Entities excluding Fair $ (597)
Fair 728
Net amount 131$
COUNTY OF SONOMA, CALIFORNIA
88
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS (OPEB)
(a) Plan Description
The County of Sonoma (County) maintains an Other Postemployment Healthcare Plan (OPEB or Plan). The Plan is a
single employer defined benefit plan which is administered by the County. The authority to establish and amend
benefit provisions of the Plan resides with the County Board of Supervisors.
The County established an OPEB trust with the Public Agency Retirement Services (PARS) in 2008 to accumulate
resources to fund future benefit payments of the Plan. The OPEB trust is reported in the County of Sonoma’s
Annual Comprehensive Financial Report (ACFR).
In accordance with a County Board of Supervisors approved salary resolution and memorandum of understanding,
the Plan includes unrepresented and represented employees hired prior to January 1, 2009, with at least 10
consecutive years of regular full-time paid employment. The Plan was closed to new participants on January 1,
2009.
(b) Benefits Provided
Retirees and the County share in the cost of monthly premiums for medical coverage. The County contribution
toward General plan member premiums is a $500 per month maximum contribution. Retired Safety and Law
Enforcement Management receive a County contribution of $500 per month to the Deputy Sheriff Association
Retiree Medical Trust. Retirees may enroll eligible dependents in the County medical plan elected by the retiree,
but the retiree is responsible for all premium costs in excess of the County’s contribution. In the case of a Safety
employee's line-of-duty death pursuant to the California labor code, dependents of the deceased employee are
eligible to receive County-subsidized medical coverage. In addition to the monthly contribution, the County
reimburses General retirees hired prior to January 1, 2009, a fixed amount of $96.40 per month for Medicare Part
B premiums. Safety and Law Enforcement Management retirees are not eligible for the Medicare Part B
reimbursement.
(c) Timeframes for GASB 75
For financial accounting and reporting purposes, GASB 75 requires using a reporting date of June 30, 2022. Due to
the availability of certain information, the County elected to use a measurement date of June 30, 2021 which is the
date the June 30, 2022 net OPEB liability was determined by an actuarial valuation.
The net OPEB liability and asset information is reported within certain defined timeframes as listed below:
Reporting Date June 30, 2022
Valuation Date June 30, 2021
Measurement Date June 30, 2021
As of June 30, 2021 measurement date, plan membership consisted of the following:
Retirees, beneficiaries, and dependents currently receiving benefits 4,253
Retirees eligible but not yet receiving benefits 122
Active members eligible for OPEB 3,869
Total 8,244
(d) Contributions
The Plan funding policy provides for periodic contributions by the County. The contributions rate as a percentage
of covered payroll were 8.8%, and are authorized annually by the County Board of Supervisors to finance the costs
of benefits for plan members, with an additional amount to finance the unfunded accrued liability. Employees do
not contribute to the Plan. Contributions for the year ended June 30, 2022 were $32,511. For additional
information see (k) below.
NOTES TO THE BASIC FINANCIAL STATEMENTS
89
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)
(e) Net OPEB Liability – Employer GASB 75
At June 30, 2022 the County’s governmental activities, business activities and discrete component units reported
net OPEB liabilities of $148,183, $2,533 and $13,554 respectively. The net OPEB liability decreased 19.8%.
(f) Actuarial Methods and Assumptions
The Net OPEB Liability (NOL) was measured as of June 30, 2021 and determined based on the total OPEB liability
from actuarial valuations as of June 30, 2021, respectively, using the following actuarial assumptions, applied to all
periods included in the measurement.
Inflation 2.75%
Investment rate of return 6.50%, net of OPEB plan investment expense, including inflation
Payroll growth 3.25%
Other assumptions Analysis of actuarial experience per the January 1, 2015 through December 31,
2017 Actuarial Experience Study dated September 25, 2018 for Sonoma County
Employees’ Retirement Association (SCERA)
(g) Investments
The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in
which best estimate ranges of expected future rates of return (expected returns, net of investment expense and
inflation) are developed for each major asset class. These returns are combined to produce the long-term expected
rate of return by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation and subtracting expected investment expenses and a risk margin. The target
allocation and projected arithmetic real rate of return for each major asset class, after deducting inflation, but
before investment expenses, were used in the derivation of the long-term expected investment rate of return
assumptions.
The following is the Board’s adopted asset allocation policy as of June 30, 2020:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Large Cap U.S. Equity 30.00%6.55%
Mid Cap U.S. Equity 4.00%6.55%
Small Cap U.S. Equity 8.00%6.55%
International Equity 8.00%8.25%
Global Equity 6.00%8.25%
U.S. Core Fixed Income 31.00%0.40%
Alternatives 8.00%3.03%
Cash 1.00%0.29%
Real Estate 4.00%3.65%
Total 100.00%
(h) Discount Rate
The discount rate used to measure the total OPEB liability (TOL) was 6.50% as of June 30, 2021. The projection of
cash flows used to determine the discount rate assumed that employer contributions will be made at rates
proportional to the actuarially determined contribution rates. Based on those assumptions, the OPEB Plan’s
Fiduciary Net Position was projected to be available to make all projected future benefit payments.
COUNTY OF SONOMA, CALIFORNIA
90
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)
(i) Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
Balances at June 30, 2021 279,554$ 74,719$ 204,835$
Changes for the year:
Service Cost 4,454 - 4,454
Interest 17,688 - 17,688
Differences between expected and actual experience (5,643) - (5,643)
Changes of assumptions (9,056) - (9,056)
Contributions – employer - 30,418 (30,418)
Net investment income - 17,835 (17,835)
Benefit payments (22,406) (22,406) -
Administrative expense - (245) 245
Net changes (14,963) 25,602 (40,565)
Balances at June 30, 2022 264,591$ 100,321$ 164,270$
The net OPEB liability decreased primarily due to fund investment performance and differences in experience. The
current assumption projects future contributions of 8.80% of future open payroll and that plan assets will be
sufficient to make all benefit payments. The schedule above reports the allocable share of employer net OPEB
liability based on a measurement date of June 30, 2021 (GASB 75) and will not agree to the Fiduciary Plan net
position presented in the Required Supplementary Information which is calculated based on a measurement date
of June 30, 2022 (GASB 74). In addition, the Fiduciary plan net position includes Sonoma County Transportation
Authority, a non-County entity, not included in above.
(j) Sensitivity of the Net OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in Discount Rate
The following presents the net OPEB liability as of June 30, 2022 calculated using the discount rate of 6.50%, as
well as what the County’s net OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (5.50%) or 1-percentage-point higher (7.50%) than the current rate:
1% Decrease Current Discount Rate 1% Increase
(5.50%)(6.50%)(7.50%)
Governmental Activities $ 168,672 $ 148,183 $ 130,464
Business-Type Activities 2,861 2,533 2,250
Total Primary Government 171,533 150,716 132,714
Discrete Component Units 15,429 13,554 11,933
Total $ 186,962 $ 164,270 $ 144,647
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate
The following presents net OPEB liability as of June 30, 2022, calculated using the trend rates of 1% higher, as well
as what the County’s net OPEB liability would be if it were calculated using trend rate that are 1% lower than the
current rates:
1% Decrease Current Trend 1% Increase
(Trend -1%)Rates (1)(Trend +1%)
Governmental Activities $ 143,627 $ 148,183 $ 153,063
Business-Type Activities 2,462 2,533 2,609
Total Primary Government 146,089 150,716 155,672
Discrete Component Units 13,138 13,554 14,001
Total $ 159,227 $ 164,270 $ 169,673
NOTES TO THE BASIC FINANCIAL STATEMENTS
91
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)
(k) Deferred Outflows and Deferred Inflows of Resources
For the year ended June 30, 2022 the County recognized OPEB expense of $5,714. The discrete component units
recognized OPEB expense of $592. At June 30, 2022, the County and its component units reported deferred
outflows and inflows of resources related to OPEB from the following sources:
Deferred
Outflows
Deferred Inflows
of Resources
Governmental Activities
Differences between expected and actual experience 1,219$ (311)$
Changes in assumptions - (10,708)
Net difference between projected and actual earnings on plan investments - (9,781)
Changes in proportion and differences between County contributions and
proportionate share of contributions - (14,255)
Contributions subsequent to the measurement date 29,335 -
Total Governmental Activities 30,554 (35,055)
Business-Type Activities
Differences between expected and actual experience 137 (360)
Changes in assumptions - (154)
Net difference between projected and actual earnings on plan investments - (92)
Changes in proportion and differences between County contributions and
proportionate share of contributions - (213)
Contributions subsequent to the measurement date 491 -
Total Business-Type Activities 628 (819)
Total Primary Government 31,182$ (35,874)$
Discrete Component Units
Differences between expected and actual experience $ 521 $ (868)
Changes in assumptions - (979)
Net difference between projected and actual earnings on plan investments - (895)
Changes in proportion and differences between employer contributions and
proportionate share of contributions - (1,304)
Contributions subsequent to the measurement date 2,683 -
Total 3,204$ (4,046)$
Contributions made subsequent to the measurement date are recorded as deferred outflows of resources related
to OPEB and will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2023
and totaled $29,826 for the County and $2,683 for the discrete component units. Other amounts reported as
deferred outflows of resources and deferred inflows of resources will be recognized as follows:
Fiscal Year Ending
June 30,
Governmental
Activities (1)
Business-Type
Activities (1)
Total
Primary Government (1)
Discrete
Component Units
(1)
2023 $ (8,916) $ (159) $ (9,075) $ (936)
2024 (8,858) (170) (9,028) (931)
2025 (8,767) (169) (8,936) (922)
2026 (6,338) (143) (6,481) (638)
2027 (957) (41) (998) (98)
Total $ (33,836) $ (682) $ (34,518) $ (3,525)
(1) brackets indicate negative expense
COUNTY OF SONOMA, CALIFORNIA
92
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)
(l) OPEB Fiduciary Plan – GASB 74
The following information is provided for the OPEB plan in accordance with GASB 74. The OPEB Fiduciary Plan is
the same Plan as reported above, however, the scope of GASB 74 includes the OPEB Fiduciary Trust. In addition,
the reporting periods differ and, as such, the financial information is different. Certain information requiring
footnote disclosure is repetitive.
The OPEB Plan is administered by the County and is presented in the statements of fiduciary net position and
change in fiduciary net position. The net OPEB plan liability and asset information is reported within certain
defined timeframes as listed below:
Reporting Date June 30, 2022
Valuation Date June 30, 2022
Measurement Date June 30, 2022
As of June 30, 2022 measurement date plan membership consisted of the following:
Retirees, beneficiaries, and dependents currently receiving benefits 4,305
Retirees eligible but not yet receiving benefits 119
Active members eligible for OPEB 3,862
Total 8,286
(m) Net OPEB Liability
Components of the net OPEB liability as of June 30, 2022:
Total OPEB liability $ 260,800
Plan fiduciary net position 98,986
Net OPEB liability $ 161,814
Plan fiduciary net position as a percentage of the total OPEB liability 37.95%
(n) Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood
by the County and OPEB members) and include the types of benefits provided at the time of each valuation and
the historical pattern of sharing of benefit costs between the County and OPEB members to that point. The
actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
The total OPEB liability was determined by an actuarial valuation as of June 30, 2022 with a measurement date of
June 30, 2022, using the following actuarial assumptions, applied to all periods included in the measurement.
Inflation 2.50%
Investment rate of return 6.50%, net of OPEB plan investment expense, including inflation
Projected salary increases 3.00%
Other assumptions Analysis of actuarial experience per the January 1, 2018 through
December 31, 2020 Actuarial Experience Study dated October 15,
2021 for Sonoma County Employees’ Retirement Association (SCERA)
NOTES TO THE BASIC FINANCIAL STATEMENTS
93
NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)
(o) Investments
The following is the County’s adopted asset allocation policy for OPEB as of June 2020, presented with the long-
term expected real rate of return as of the June 30, 2022 measurement date:
For the year ended June 30, 2022, the annual money-weighted rate of return on investments, net of investment
expense was 37.95%. The money-weighted rate of return expresses investment performance, net of investment
expense, adjusted for the amounts actually invested.
(p) Discount Rate
The discount rate used to measure the total OPEB liability was 6.50% as of June 30, 2022. The projection of cash
flows used to determine the discount rate assumes employer contributions at 8.8% of future open group payroll.
This rate is established annually through approval of the County’s Budget. For this purpose, employer
contributions that are intended to fund benefits of current plan members and their beneficiaries are included.
Projected employer contributions that are intended to fund the service costs for future plan members and their
beneficiaries are included. Based on those assumptions, the OPEB plan's fiduciary net position was projected to be
available to make all projected future benefit payments for current plan members.
(q) Sensitivity of the Net OPEB Liability
Sensitivity of the Net OPEB Liability to Changes in Discount Rate
The following presents the net OPEB liability as of June 30, 2022 calculated using the discount rate of 6.50%, as
well as what the County’s net OPEB liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (5.50%) or 1-percentage-point higher (7.50%) than the current rate:
1% Decrease Current Discount Rate 1% Increase
(5.50%)(6.50%)(7.50%)
$ 183,989 $ 161,814 $ 142,601 Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rate
The following present the net OPEB liability as of June 30, 2022, calculated using health care cost trend rates of
+1% higher, as well as calculated using health care cost trend rates that are 1% lower than the current rates:
1% Decrease Current Trend 1% Increase
(Trend -1%)Rates (Trend +1%)
$ 156,572 $ 161,814 $ 167,373
Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
Large Cap U.S.Equity 30.00%6.72%
Mid Cap U.S. Equity 4.00%6.72%
Small Cap U.S. Equity 8.00%6.72%
International Equity 8.00%8.09%
Global Equity 6.00%8.09%
U.S. Core Fixed Income 31.00%0.72%
Alternatives 8.00%3.50%
Cash 1.00%0.22%
Real Estate 4.00%4.22%
Total 100.00%
COUNTY OF SONOMA, CALIFORNIA
94
NOTE 13 – RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; natural disasters; and medical malpractice. The County has established an
internal service fund to account for and finance risks for workers’ compensation, general liability, health insurance
and medical malpractice. The County is self-insured for unemployment claims and reimburses the State for all
amounts paid. For general liability and workers’ compensation claims, excess coverage is provided by the Public
Risk Innovation, Solutions, and Management (Authority) (formerly known as California State Association of
Counties Excess Insurance Authority CSAC-EIA), a joint powers authority whose purpose is to develop and fund
programs of excess insurance for its members, which include cities and counties in California, as well as numerous
school districts, special districts, housing authorities, fire districts and other Joint Powers Authorities. The
Authority’s Board of Directors consists of representatives from its members.
The County retains the risk for the first $300 of an individual claim for workers’ compensation, and $1,000 for a
general liability claim. Amounts in excess of $300 per occurrence for workers’ compensation claims with statutory
limits are covered through participation in the Authority’s, Excess Worker’s Compensation Program. The County is
covered under the Authority’s Excess Liability Insurance Program for $1,000 to $35,000 per occurrence for liability
claims.
The County maintains coverages ranging from “All Risk” of physical loss or damage including flood and earthquake
coverage (for certain structures) through participation with the Authority with the following limits and deductibles:
$665,000 limit (shared) per occurrence and $50 deductible for “All-Risk”, $600,000 limit (shared) for flood, and
earthquake limits of $665,000 (shared) with a deductible of 2% of the building value ($100 minimum). Boiler and
machinery coverage is included in the All-Risk coverage.
The County also participates in the Authority’s medical malpractice program with up to $21,500 per event
coverage and a $25 deductible. Funding for this program is actuarially determined and contributions are
determined by claims experience and exposures (number of patient visits). As of June 30, 2022, the estimated
liability in the internal service fund totaled $0.
The Sonoma County Health Plan (CHP) provides self-insured medical plan options for County employees in addition
to fully insured plans. The County retains the risk for the first $275 of a health insurance claim with unlimited stop-
loss coverage and no lifetime maximum per individual.
The governmental and certain proprietary fund types contribute amounts to the internal service fund based on
actuarially determined estimates of the ultimate settlements. Such estimates are generally based upon a 70%
confidence level. Contributions for the fiscal year ended June 30, 2022, totaled $44,093, which is recorded in the
internal service fund as operating revenue. As of June 30, 2022, the estimated liability in the internal service fund
totaled $60,628 of which $13,389 is estimated to be payable in the ensuing year. The remaining $47,239 is
classified as long-term, self-funded insurance payable in the internal service fund.
A summary of activity of the claims liability is as follows:
Balance Balance
June 30, 2021 June 30, 2022
Unpaid claims liability at beginning of year $ 52,870 $ 56,790
Incurred claims 24,331 23,061
Claim payments (20,411)(19,223)
Unpaid claims liability at end of year $ 56,790 $60,628
NOTES TO THE BASIC FINANCIAL STATEMENTS
95
NOTE 14 – LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
The Refuse Enterprise Fund (REF) follows the provisions of GASB Statement No. 18, Accounting for Municipal Solid
Waste Landfill Closure and Postclosure Care Costs. Under Statement No. 18, the Refuse Enterprise Fund calculated
the total estimated current cost of closure and postclosure care for its landfill accepting solid waste (Central) and
those no longer accepting solid waste (Healdsburg and Annapolis).
As of June 30, 2022, the estimated closure and postclosure liability was $7,764 for closed landfills Annapolis and
Healdsburg. As part of the Service Concession Arrangement (SCA) effective April 1, 2015, Republic Services, Inc. has
assumed responsibility for the completion of all closure and post-closure obligations related to the Central Landfill.
Federal and state laws require landfill operators to place a cover on their landfills when closed and to perform
certain maintenance and monitoring functions for up to 30 years after closure. The estimated cost of closure and
postclosure care are subject to change due to variables such as inflation, changes in the cost of materials, revisions
of Federal and state laws, changes in technology and other variables. In addition to the above, state regulations
require that landfill closure and post-closure maintenance costs be fully funded at the time of closure, unless a
landfill owner/operator can demonstrate financial responsibility towards these activities by using other approved
financial assurance alternatives. As an alternative, on July 11, 2000, the Board of Supervisors approved two
resolutions establishing financial assurance for post-closure maintenance and corrective action via 30 year
agreements with the California Integrated Waste Management Board (CIWMB). The Annapolis Landfill agreement
provides a pledged revenue of $36 per year and Healdsburg Landfill agreement pledged $78 per year. Both 30
year agreements are subject to adjustments in the cost estimate mutually agreed to by the County, the CIWMB,
and the Regional Water Quality Control Board.
The estimated percentages of permitted landfill capacity used are as follows:
Capacity Used Closure Date
Annapolis 100% 1995
Healdsburg 100% 1989
The REF performs all post-closure maintenance and monitoring functions at all closed landfills owned by REF.
As a result of the SCA, the REF has recognized decrease closure/post-closure liability of $42,057.
Although the REF is not legally required by state or federal laws to provide funding for its landfill sites closed prior
to 1991, the REF has accepted final responsibility for these sites.
COUNTY OF SONOMA, CALIFORNIA
96
NOTE 15 – COMMITMENTS AND CONTINGENCIES
(a) Grants and Subsidies
Receipts from federal, state and local sources are subject to audit by representatives of those agencies to
determine if the monies were expended in accordance with appropriate statutes, grant terms, and regulations.
Such audits could lead to a request for reimbursement to the grantor agencies. The County believes that no
significant liabilities will be incurred as a result of these audits.
(b) Encumbrances
The County governmental funds had the following open encumbrances at June 30, 2022:
General Fund $ 13,153
Other governmental funds 15,621
Total encumbrances for governmental funds $ 28,774
(c) Other
The County from time to time is a party to various claims, legal actions, and complaints arising in the ordinary
course of business. In the opinion of the County's administration, the various claims, legal actions, and complaints
would have no material effect on the financial position of the County.
NOTE 16 – DEFERRED INFLOWS OF RESOURCES
At June 30, 2022, deferred inflows of resources are as follows:
Governmental Funds General
Human Services
Special Revenue
Health and
Sanitation
Special Revenue Other Funds Total
Deferred amounts related to leases 5,752$ -$ -$ 159$ 5,911$
Government-mandated transactions 86 117 - - 203
Unavailable revenue 11,709 29 7,594 486 19,818
Total 17,547$ 146$ 7,594$ 645$ 25,932$
Governmental Activities
Internal Service
Funds Other Funds Total
Deferred amounts related to leases -$ 5,911$ 5,911$
Service concession arrangement - 203 203
Deferred amounts related to pension 323,214 2,483 325,697
Deferred amounts related to OPEB 34,768 287 35,055
Total 357,982$ 8,884$ 366,866$
Business-Type Activities Refuse Airport Transit Other Funds Total
Deferred amounts related to leases 337$ 7,619$ -$ -$ 7,956$
Service concession arrangement 31,978 - - - 31,978
Deferred amounts related to pensions 951 1,277 429 1,028 3,685
Deferred amounts related to OPEB 102 205 138 374 819
Total 33,368$ 9,101$ 567$ 1,402$ 44,438$
(1) Unavailable revenue is a type of deferred revenue used by governmental funds. If accrued revenue is not yet available, the
related receivable is matched by a deferred inflow of resources for unavailable revenue and revenue recognition occurs
when the revenue becomes available.
For additional information on the service concession arrangement see Note 17, for deferred amounts related to
pension see Note 11, and for deferred amounts related to OPEB see Note 12.
NOTES TO THE BASIC FINANCIAL STATEMENTS
97
NOTE 17 – SERVICE CONCESSION ARRANGEMENT
On April 23, 2013, the County entered into a Master Operations Agreement (MOA) with Republic Services, Inc. for
the operation of the Central landfill and County transfer stations. The MOA between the County and Republic
Services went into effect on April 1, 2015, and meets the criteria under GASB Statement No. 60, ‘Accounting and
Financial Reporting for Service Concession Arrangements’ (SCA). The MOA grants Republic Services the ability to
extend the agreement until the landfill is closed which is currently estimated at between 30 and 35 years. As
consideration for the County granting Republic Services an exclusive right and concession to operate the County
facilities for the Committed Waste Period, Republic Services has agreed to pay the County a quarterly County
Concession Payment. The quarterly payment is based on a per ton charge on all waste that is received except for
beneficial reuse material, special waste and residuals or waste delivered to the County facilities from any other
processing or transfer facility in Sonoma County. The County Concession Payment shall be increased annually by
the amount of the Consumer Price Index.
Pursuant to a settlement agreement between the County and the committed cities, 8 of the 9 cities in the County
agreed to commit their waste to Republic Services for 25 years. In addition, under the terms of the settlement
agreement, the County is required to allocate 70% of the quarterly County Concession Payments received from
Republic for the purpose of maintaining the four former urban landfills, with the remaining 30% to be used to
cover Refuse’s administrative costs associated with those four landfills and overseeing the MOA. The quarterly
payment will be paid for the duration of the MOA, however, the committed cities will not pay their portion of
County Concession Payments attributable to maintaining the four former landfills for years 21 through 25 of the 25
year waste commitments.
Additionally, the MOA calls for Republic to assume the closure/post-closure liability in perpetuity for the Central
landfill as of April 1, 2015 and to provide financial assurances mechanisms to demonstrate, fund, and maintain
financial responsibility for the Central landfill as required by law including closure, post-closure, corrective action
and operating liability acceptable to the California Department of Resources Recycling Recovery (CalRecycle). As a
result, Refuse recognized a closure/post-closure liability decrease in the amount of $42,057 and recorded a
deferred inflow of $41,710 as of June 30, 2015. The deferred inflow is being amortized over the estimated 30 year
term of the MOA, and as a result, Refuse recognized service concession arrangement revenues in the amount of
$1,390 for the fiscal year ended June 30, 2022. As part of the SCA, capital assets (equipment) with a net book
value of $278 were transferred to Republic Services, Inc.
The deferred inflows of resources activity is as follows:
Balance
June 30, 2021 Additions Retirements
Balance
June 30, 2022
Deferred Inflows of Resources
Central Landfill and
County Transfer Stations $ 33,368 $ - $ (1,390) $ 31,978
Refuse retained certain capital assets related to the SCA. The assets carrying value, net of accumulated
depreciation at June 30, 2022 is as follows:
Central Landfill and County Transfer Stations:
Land 2,538$
Buildings and improvements 11,530
Intangibles 649
Equipment 77
SCA capital assets, net 14,794$
COUNTY OF SONOMA, CALIFORNIA
98
NOTE 18 – SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
On December 29, 2011, the California Supreme Court upheld Assembly Bill XI 26 (“the Bill”) that provides for the
dissolution of all redevelopment agencies in the State of California and that the county (or another unit of local
government) serve as the “successor agency” to hold the assets until they are distributed.
In accordance with the timeline set forth in the Bill, all redevelopment agencies in the State of California were
dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of the dissolved
former county redevelopment agency are currently reported in the Successor Agency (Successor Agency) Private-
Purpose Trust Fund, a fiduciary fund in the County financial statements.
Balance
July 1, 2021 Additions Retirements
Balance
June 30, 2022 One Year
Redevelopment Successor Agency
Tax allocation bonds payable* $ 8,205 $ - $ (430) $ 7,775 $ 450
*excludes bond premium amortization
On February 1, 2012, two Tax Allocation Bonds (Bonds); 1986 Series A, and the Springs Tax Allocation Bonds of
2008; were acquired from the former Sonoma County Community Redevelopment Agency. The Agency had
pledged future tax increment revenues, less amounts required to be set aside pursuant to ABX1 26 and AB1484,
for enforceable repayment. On April 28, 2016, Bonds outstanding were refunded and reissued as 2016 Tax
Allocation Bonds.
The 2016 Bonds were issued in the amount of $10,140 with interest rates from 2.0% to 5.0%, maturing on August
1, 2034. The 2016 Bonds are limited obligations of the successor agency and are secured by an irrevocable pledge
of, and are payable as to principal and interest from, tax revenues which are deposited in the Redevelopment
Property Tax Trust Fund and the Redevelopment Obligation Retirement Fund. The 2016 Bonds are not a debt of
the County of Sonoma. Unamortized bond premium at June 30, 2022 is $1,001.
The annual principal and interest requirements on the long-term bonds outstanding at June 30, 2022, are as
follows:
Year ending June 30:Principal Interest Total
2023 450$ 333$ 783$
2024 470 315 785
2025 485 294 779
2026 505 269 774
2027 535 243 778
2028-2032 3,110 777 3,887
2033-2035 2,220 109 2,329
Total 7,775$ 2,340$ 10,115$
NOTES TO THE BASIC FINANCIAL STATEMENTS
99
NOTE 19 – NET POSITION/FUND BALANCES
(a) Classification
Fund balances at June 30, 2022 were classified as follows:
General
Human
Services
Special
Revenue
Health and
Sanitation
Special
Revenue
Open Space
Special Tax
Account
Special Revenue Other Funds Total
Nonspendable:
Inventories 149$ -$ -$ -$ 706$ 855$
Prepaid items and deposits 5,125 3,225 7 - 209 8,566
Advances 3,800 - - - - 3,800
Total nonspendable fund balances 9,074 3,225 7 - 915 13,221
Restricted:
Agricultural Preservation and Open Space District - - - 71,382 3,504 74,886
Capital projects and equipment replacement - - - - 41,655 41,655
Debt service - - - - 10,465 10,465
Park donations, mitigations and operations - - - - 9,980 9,980
Courthouse/Criminal justice construction - - - - 2,012 2,012
Health services programs - - 147,378 - 10,460 157,838
Fire and emergency services - - - - 1,914 1,914
Public assistance - 39,498 - - 12,624 52,122
Lighting districts - - - - 10,450 10,450
Public protection - - 1,124 - 64,836 65,960
Clerk, recorder, assessor operations - - - - 5,627 5,627
Other programs 889 - - - 1,221 2,110
Total restricted fund balances 889 39,498 148,502 71,382 174,748 435,019
Committed:
Road activities - - - - 2,602 2,602
Advertising activities - - - - 19,177 19,177
Other programs 153 - - - 12,702 12,855
Total committed fund balances 153 ---34,481 34,634
Assigned:
Capital projects and equipment replacement 17,920 - - - 117,078 134,998
Tribal development impact mitigation 27,366 - - - - 27,366
Projected budget deficit 34,805 - - - - 34,805
Redevelopment agencies 6,555 - - - - 6,555
General services 8,888 - - - - 8,888
Public protection 13,177 - - - - 13,177
Encumbrances 13,153 - - - - 13,153
Fire settlement projects 45,523 - - - - 45,523
Cannabis program 5,588 - - - - 5,588
Other programs 29,513 - - - - 29,513
Total assigned fund balances 202,488 - - - 117,078 319,566
Unassigned 67,266 - - - - 67,266
Total fund balances 279,870$ 42,723$ 148,509$ 71,382$ 327,222$ 869,706$
COUNTY OF SONOMA, CALIFORNIA
100
NOTE 19 – FUND BALANCES (Continued)
(b) Retained Deficits
Internal Service Funds
The County’s Employee Retirement Internal Service Fund has a retained deficit of $324,155 at June 30, 2022. This
fund is used to account for the County’s pension related activities and includes the pension obligation bonds as
well as the net pension asset. The County funds contributions to the pension plan and debt service payments for
the pension obligation bonds with charges collected from departments through bi‐weekly payroll. Collections
from departments are sufficient to cover the annual contributions to the pension plan and debt service payments
but are not intended to build an asset balance in this fund. Consequently, this fund is expected to have a retained
deficit until the pension obligation bonds are repaid and the pension plan is fully funded.
The County’s Other Postemployment Benefits (OPEB) Internal Service Fund has a retained deficit of $142,773 at
June 30, 2022. This fund is used to account for the County’s other postemployment benefit related activities and
includes the net OPEB liability. The County funds contributions to OPEB with charges collected from departments
through bi‐weekly payroll, sufficient to cover the annual contributions to OPEB costs and contribute to the PARS
OPEB trust to fund future OPEB payments. This fund is expected to have a retained deficit until the OPEB
obligation is fully funded.
Private Purpose Trust Fund
The Private Purpose Trust Fund has retained deficit of $16,978 at June 30, 2022. This deficit is primary due to the
August 2020 assumption of Palm Drive Health Care District. At June 30, 2022, the District has $13.4 million in debt
service obligations which will be paid off over the next 11‐12 years and an additional $2.6 million in bankruptcy
debt. This fund is expected to have a retained deficit until the debt and bankruptcy obligations are settled.
NOTE 20 – NET POSITION RESTATEMENT – GASB 87
As of June 30, 2021, the County implemented GASB Statement No. 87, Leases. This standard establishes a single
model for lease accounting based on the principle that leases are financings of the right‐to‐use an underlying asset.
This resulted in recognition of a right‐to‐use asset, lease receivables, lease liability and a deferred inflow of
resources. Beginning net position was restated to reflect this change as follows:
Major Enterprise
Fund
Major Enterprise
Fund
Airport Refuse
Net position at June 30, 2021 $ 94,744 $ 38,859
Recognition of lease receivables 8,045 376
Recognition of deferred inflows from leases (8,045) (376)
Net position at June 30, 2021, as restated $ 94,744 $ 38,859
Governmental
Activities
Business‐type
Activities
Net position at June 30, 2021 $ 1,491,428 $ 133,603
Recognition of right‐to‐use asset 91,591 ‐
Recognition of lease receivables 1,625 8,421
Recognition of lease liability (91,591) ‐
Recognition of deferred inflows from leases (1,625) (8,421)
Net position at June 30, 2021, as restated $ 1,491,428 $ 133,603
REQUIRED SUPPLEMENTARY INFORMATION
(UNAUDITED)
REQUIRED SUPPLEMENTARY INFORMATION
COUNTY OF SONOMA, CALIFORNIA
Schedule of County's Proportionate Share of the Net Pension Liability (Asset)
Last Ten Fiscal Years *
(Dollars in Thousands)
Measurement Date 12/31/2021 12/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016 12/31/2015 12/31/2014
Reporting Date FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015
Proportion of net pension liability (asset)101.35%81.59%82.74%84.64%80.73%84.27%84.43%81.66%
Proportionate share of net pension liability (asset)(62,139)$ 155,616$ 187,359$ 418,350$ 136,291$ 330,831$ 348,556$ 177,023$
Covered payroll 332,953$ 323,263$ 295,896$ 300,515$ 300,546$ 285,864$ 271,061$ 262,325$
Proportionate share of net pension liability (asset)
as a percentage of covered payroll -18.66%48.14%63.32%139.21%45.35%115.73%128.59%67.48%
Plan fiduciary net position as a percentage
of the total pension liability (asset)101.77%94.16%92.80%83.91%94.21%86.02%84.68%91.46%
Schedule of County Pension Contributions
Last Ten Fiscal Years *
(Dollars in Thousands)
Measurement Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015
Reporting Date FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015
Actuarially determined contributions 62,733$ 69,858$ 55,829$ 57,797$ 55,480$ 52,981$ 56,663$ 55,981$
Contributions in relation to the actuarially
determined contribution 68,329 71,669 62,551 57,797 55,480 52,981 60,216 55,981
Contribution deficiency (excess)(5,596)$ (1,811)$ (6,722)$ -$ -$ -$ (3,553)$ -$
Covered payroll 336,023$ 329,911$ 313,806$ 307,543$ 302,281$ 293,871$ 288,885$ 265,945$
Contributions as a percentage of
covered payroll 20.33%21.72%19.93%18.79%18.35%18.03%20.84%21.05%
* The required supplementary Information is intended to show information for ten years. Additional years' information will
be displayed as this information becomes available.
Notes:
The information presented includes the funds and blended component units identified in this ACFR as part of the County of
Sonoma and does not include information of the discrete component units or other Sonoma County Employee Retirement
Association employers.
103
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Schedule of County's Net OPEB Plan Liability and Related Ratios
Last Ten Fiscal Years *
(Dollars in Thousands)
Reporting/Measurement Date:FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
Total OPEB liability 260,800$ 266,008$ 279,215$ 303,941$ 308,205$ 385,583$
Plan's fiduciary net position 98,986 101,553 73,882 66,060 57,860 49,743
Net OPEB liability 161,814$ 164,455$ 205,333$ 237,881$ 250,345$ 335,840$
Plan fiduciary net position as a percentage of the
total OPEB liability 37.95%38.18%26.46%21.73%18.77%12.90%
Covered payroll 369,909$ 364,433$ 334,716$ 327,816$ 330,039$ 321,401$
Plan net OPEB liability as a percentage of covered payroll 43.74%45.13%61.35%72.57%75.85%104.49%
Schedule of OPEB Plan Investment Returns
Last Ten Fiscal Years *
Reporting/Measurement Date:FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
Annual Money-Weighted Rate of Return,
Net of Investment Expense -12.84%26.86%3.69%7.61%7.45%11.47%
Schedule of County OPEB Contributions
Last Ten Fiscal Years *
(Dollars in Thousands)
Reporting/Measurement Date:FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
Actuarially determined contributions 13,602$ 15,787$ 17,532$ 18,206$ 18,938$ 21,653$
Contributions in relation to the actuarially determined
contributions 39,792 30,507 27,612 26,193 26,768 27,699
Contribution deficiency (excess)(26,190)$ (14,720)$ (10,080)$ (7,987)$ (7,830)$ (6,046)$
Covered payroll 369,909$ 364,433$ 334,716$ 327,816$ 330,039$ 321,401$
Contributions as a percentage of covered employee
payroll 10.76%8.37%8.25%7.99%8.11%8.62%
* The required supplementary Information is intended to show information for ten years. Additional years'
information will be displayed as this information becomes available.
Notes:
The schedules above may not agree to the basic financial statements due to the Sonoma County Fair
reporting on a calendar year which is different from the OPEB plan's fiscal year.
104
REQUIRED SUPPLEMENTARY INFORMATION
COUNTY OF SONOMA, CALIFORNIA
OPEB Plan Trust
Schedule of Changes in Net OPEB Liability and Related Ratios
Last Ten Fiscal Years *
(Dollars in Thousands)
Reporting/Measurement Date:FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
Total OPEB Liability
Service Cost 4,294$ 4,462$ 5,148$ 5,468$ 10,852$ 13,800$
Interest 16,640 17,722 19,375 19,667 14,566 12,579
Changes of benefit terms - - (245) -
Differences between expected and actual experience 262 (6,270) (17,044) (557) 3,210 (1,547)
Change due to reflecting the excise tax - - - - 2,351
Changes of assumptions 2,650 (6,715) (10,194) (6,404) (83,838) (28,454)
Benefit payments (29,056) (22,406) (22,011) (22,193) (22,168) (23,529)
Net change in total OPEB Liability (5,208) (13,207) (24,726) (4,264) (77,378) (24,800)
Total OPEB liability - beginning of year 266,008 279,215 303,941 308,205 385,583 410,383
Total OPEB liability - end of year (a)260,800$ 266,008$ 279,215$ 303,941$ 308,205$ 385,583$
Plan fiduciary net position
Contributions – PARS 10,735$ 8,101$ 5,600$ 4,000$ 4,600$ 3,000$
Contributions – Premiums net of retiree contributions 27,701 21,121 20,870 20,960 21,031 22,377
Contributions – Administrative 1,354 1,285 1,142 1,233 1,137 1,152
Contributions – Legal - - - - - 217
Contributions – Total employer 39,790$ 30,507$ 27,612$ 26,193$ 26,768$ 26,746$
Net investment income (13,024) 19,815 2,435 4,395 3,699 4,817
Benefit payments – Premiums (29,056) (22,406) (22,012) (22,193) (22,168) (23,530)
Legal expense - - - - - (217)
Administrative expense (277) (245) (213) (195) (182) (153)
Net change in plan fiduciary net position (2,567) 27,671 7,822 8,200 8,117 7,663
Plan fiduciary net position - beginning of year 101,553 73,882 66,060 57,860 49,743 42,080
Plan fiduciary net position - end of year (b)98,986 101,553 73,882 66,060 57,860 49,743
County net OPEB liability, ending (a-b)161,814$ 164,455$ 205,333$ 237,881$ 250,345$ 335,840$
* The required supplementary Information is intended to show information for ten years. Additional years'
information will be displayed as this information becomes available.
105
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
General Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with
Final Budget
Positive (Negative)
Revenues:
Taxes 325,760$ 328,247$ 346,578$ 18,331$
Licenses, permits and franchised fees 23,337 23,309 22,403 (906)
Fines, forfeitures and penalties 9,702 9,702 8,965 (737)
Use of money and property 5,288 5,483 (4,118) (9,601)
Intergovernmental 172,109 192,936 183,234 (9,702)
Charges for services 52,235 52,321 50,029 (2,292)
Other 3,939 4,495 6,533 2,038
Total revenues 592,370 616,493 613,624 (2,869)
Expenditures:
General government
Board of Supervisors / County Administrator
County Administrator 11,074 12,805 9,397 3,408
Board of Supervisors 6,480 6,558 6,133 425
Disaster Recovery and Resiliency 122 267 133 134
Auditor-Controller-Treasurer-Tax Collector 19,883 20,507 19,160 1,347
Recorder-Assessor
Assessor 12,839 13,324 12,973 351
Registrar of Voters 5,542 7,777 6,784 993
County Counsel 11,728 11,728 11,188 540
Human Resources 11,956 12,115 10,802 1,313
General Services
Administration 2,307 2,309 2,268 41
Facilities Development 15,823 21,455 16,584 4,871
Special Funds 5,899 8,365 7,934 431
Support Services 19,156 19,966 19,240 726
Economic Development Board - 45 24 21
The Office of Equity 930 2,817 1,651 1,166
Information Systems 46,433 48,072 40,217 7,855
Disaster Recovery Division 10,474 36,917 27,141 9,776
Other general government 18,767 53,727 46,415 7,312
Total general government 199,413 278,754 238,044 40,710
Public protection
District Attorney 30,381 30,957 28,928 2,029
Public Defender 13,586 13,875 13,418 457
Court Support and Grand Jury 11,149 11,258 11,190 68
Probation 64,171 68,514 59,913 8,601
Permit & Resource Management
Permit Sonoma 41,180 42,009 36,902 5,107
Resiliency Permit Center 4,241 4,241 1,419 2,822
Fire Prevention 425 477 294 183
Sheriff
Law Enforcement 110,904 114,818 107,904 6,914
Detention 81,073 79,612 73,631 5,981
106
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule (Continued)
General Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Public Protection (continued)
Agriculture / Weights & Measures 7,719 9,567 7,261 2,306
County Clerk Operations 889 889 836 53
Emergency Management 6,868 7,896 4,491 3,405
Fire Services 5,669 11,773 7,544 4,229
Independent Office of Law Enforcement
Review and Outreach 1,957 2,831 1,845 986
Total public protection 380,212 398,717 355,576 43,141
Public ways and facilities
Transportation & Public Works 265 1,099 205 894
Total public ways and facilities 265 1,099 205 894
Health and sanitation
Disaster Recovery Division 23,531 49,060 46,632 2,428
Human Services 522 522 355 167
Total public assistance 24,053 49,582 46,987 2,595
Education
U.C. Cooperative Extension 1,503 2,534 1,347 1,187
Total education 1,503 2,534 1,347 1,187
Recreation and cultural services
Regional Parks 29,680 30,794 29,927 867
General Services - Veterans Buildings 1,304 1,368 1,310 58
Total recreation and cultural services 30,984 32,162 31,237 925
Expenditures subtotal 636,430 762,848 673,396 89,452
Reimbursements (131,756) (132,285) (115,935) (16,350)
Total expenditures 504,674 630,563 557,461 73,102
Excess (deficiency) of revenues over (under)
expenditures 87,696 (14,070) 56,163 70,233
Other financing sources (uses):
Transfers in 86,582 162,069 153,698 (8,371)
Transfers out (191,133) (339,647) (333,485) 6,162
Lease Inception - 12,887 1,152 (11,735)
Sale of capital assets 400 406 12,976 12,570
Total other financing sources (uses)(113,651) (185,544) (165,659) 19,885
Net change in fund balances (25,955)$ (199,614)$ (109,496) 90,118$
GAAP basis difference - encumbrances 13,153
Fund balance, beginning of year 376,213
Fund balance, end of year 279,870$
107
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Human Services Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Licenses, permits and franchised fees 100$ 120$ 69$ (51)$
Fines, forfeitures and penalties - - 49 49
Use of money and property 83 83 (988) (1,071)
Intergovernmental 211,967 221,187 195,013 (26,174)
Charges for services 1,222 1,222 1,501 279
Other 3,832 3,832 13,354 9,522
Total revenues 217,204 226,444 208,998 (17,446)
Expenditures:
Public assistance
Human Services
Program Administration 270,461 313,306 258,490 54,816
Special Revenue 44,422 50,878 44,067 6,811
Total Public assistance 314,883 364,184 302,557 61,627
Reimbursements (72,465) (74,136) (74,425) 289
Total expenditures 242,418 290,048 228,132 61,916
Excess (deficiency) of revenues over (under)
expenditures (25,214) (63,604) (19,134) 44,470
Other financing sources (uses):
Transfers in 26,814 27,431 28,728 1,297
Transfers out (1,474) (1,474) (745) 729
Lease Inception - 38,018 - (38,018)
Total other financing sources (uses)25,340 63,975 27,983 (35,992)
Net change in fund balances 126$ 371$ 8,849 8,478$
GAAP basis difference - encumbrances 43
Fund balance, beginning of year 33,831
Fund balance, end of year 42,723$
108
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Health and Sanitation Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Taxes 24,500$ 24,500$ 25,098$ 598$
Licenses, permits and franchised fees 7,652 7,652 7,594 (58)
Fines, forfeitures and penalties 862 862 890 28
Use of money and property (153) (153) (3,493) (3,340)
Intergovernmental 116,737 124,368 143,482 19,114
Charges for services 4,065 4,065 3,671 (394)
Other (52) (12) 6,385 6,397
Total revenues 153,611 161,282 183,627 22,345
Expenditures:
Public protection
Health Services - Animal Services 6,396 6,437 5,575 862
Health and sanitation
Health Services
Administration 25,132 40,069 25,141 14,928
Behavioral Health 116,908 150,301 111,823 38,478
Public Health 61,276 75,861 60,170 15,691
Special Revenue 75,205 87,698 67,920 19,778
Total Health and sanitation 278,521 353,929 265,054 88,875
Reimbursements (113,003) (123,616) (99,938) (23,678)
Total expenditures 171,914 236,750 170,691 66,059
Excess (deficiency) of revenues over (under)
expenditures (18,303) (75,468) 12,936 88,404
Other financing sources (uses):
Transfers in 26,789 29,893 29,571 (322)
Transfers out (1,841) (4,674) (4,673) 1
Lease Inception - 40,200 894 (39,306)
Sale of capital assets - - 3,015 3,015
Total other financing sources (uses)24,948 65,419 28,807 (36,612)
Net change in fund balances 6,645$ (10,049)$ 41,743 51,792$
GAAP basis difference - encumbrances 401
Fund balance, beginning of year 106,365
Fund balance, end of year 148,509$
109
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Open Space Special Tax Account Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Taxes 26,109$ 26,109$ 31,880$ 5,771$
Use of money and property - - (2,108) (2,108)
Total revenues 26,109 26,109 29,772 3,663
Expenditures:
Recreation and cultural services 41,360 41,360 11,198 30,162
Total Expenditures 41,360 41,360 11,198 30,162
Excess (deficiency) of revenues over (under)
expenditures (15,251) (15,251) 18,574 33,825
Other financing sources (uses):
Transfers out (7,502) (7,678) (7,678) -
Total other financing sources (uses)(7,502) (7,678) (7,678) -
Net change in fund balances (22,753)$ (22,929)$ 10,896 33,825$
GAAP basis difference - encumbrances -
Fund balance, beginning of year 60,486
Fund balance, end of year 71,382$
110
111
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
NOTE 1 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
a) Change of Assumptions
OPEB Plan amounts reported for the net OPEB liability decreased due primarily to lower-than-expected
fund investment performance.
b) Actuarial Methods and Assumptions
The methods and assumptions used to establish the actuarially determined contribution (ADC) though June
30, 2022 are noted below:
Valuation date Actuarially determined contributions are based on the beginning of
the applicable period
Actuarial cost method Entry Age Actuarial Cost Method
Amortization method Level percent of payroll for total unfunded actuarial accrued liability
Remaining amortization period
June 30, 2022 valuation 25 years (declining) for outstanding balance of the June 30, 2021
unfunded OPEB liability
June 30, 2021 valuation 26 years (declining) for outstanding balance of the June 30, 2020
unfunded OPEB liability
Asset valuation method Market value of assets
Actuarial assumptions
Discount rate 6.50% net of OPEB plan investment expense, including inflation
Payroll growth 3.25%
Other assumptions June 30, 2021 - Same as those used in the June 30, 2021 GAS 74
(revised) actuarial valuation dated October 4, 2021
June 30, 2020 - Same as those used in the June 30, 2020 GAS 74
actuarial valuation dated June 11, 2021
REQUIRED SUPPLEMENTARY INFORMATION
112
NOTE 2 – BUDGETARY AND LEGAL COMPLIANCE
The County adopts a budget for each fiscal year on or before October 2 in accordance with the provisions
of Sections 29000 through 29144 and 30200 of the California Government Code and other statutory
provisions, commonly known as the County Budget Act.
An operating budget is adopted each fiscal year for all Governmental Funds. The legal level of budgetary
control (i.e. the level at which expenditures may not legally exceed appropriations) is controlled at the
division level within fund level for the County. Appropriations at this level require a Board majority
approval. Management may make adjustments below this level. State law prohibits expending
governmental funds for which there is no legal appropriation except under court order, for an emergency
as defined by statute, or as otherwise provided by law.
For the year ended June 30, 2022, no instances existed in which expenditures exceeded appropriations.
For purposes of budgetary presentation actual GAAP expenditures are typically adjusted to include current
year encumbrances and interfund transfers. Encumbered appropriations are carried forward in the ensuing
year's budget. Annual appropriations that have not been encumbered lapse at year-end. Reimbursements,
which are included in actual GAAP expenditures, are separately stated for budgetary presentation.
OTHER SUPPLEMENTARY
INFORMATION
(UNAUD I TED )
N ONMAJOR G OVERNMENTAL F UNDS
C APITAL P ROJECTS F UND
Accounts for financial resources used for the acquisition or construction of major capital facilities, other than
those financed in the proprietary fund types.
D EBT S ERVICE F UND
Accounts for the accumulation of resources for, and the payment of, long-term debt.
S PECIAL R EVENUE F UNDS
Special revenue funds are authorized by statutory provisions and are financed by specific taxes or other revenues.
The following funds are included in the Special Revenue classification:
COMMUNITY INVESTMENT
Established to account for revenues generated by the County Transient Occupancy Tax. The fund finances both
the Economic Development Department and the Community Investment Fund pursuant to Government Code
Section 26100. Tax revenues are derived from a tax on the rental revenue of hotel, motel, bed and breakfast, inn
beds, vacation rentals, and campgrounds in unincorporated areas of the County.
AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT
Formed in 1990 for the purpose of preserving agricultural land and open space in Sonoma County, and financed
primarily through a quarter-cent sales tax. The District is a separate legal entity governed by its Board of Directors,
which is the County Board of Supervisors, ex officio (California Public Resources Code 5506.5(b)).
ROADS SPECIAL REVENUE
Restricted for the planning, design, construction, maintenance and administration of County roads. The Roads
Special Revenue Fund is reimbursed by highway user tax (gas tax) distributions from the state, federal and state
reimbursement for road-related construction and improvement projects, and by billing other County departments
and non-county entities for time and materials spent on activities not related to roads.
MANDATED REVENUE
Established for state programs that are required to be accounted for in a special fund. Revenues are primarily
restricted.
2011 REALIGNMENT
Established as required by Assembly Bill 109 which transferred responsibility from the State to the County for
supervision, custody and needs of certain realigned offenders. The State realigned certain revenues from sales tax
and vehicle license fees to fund the program.
SPECIAL DISTRICTS
Special Districts are independent units of local government organized to perform a single government function or
a restricted number of related functions, including Fire and Emergency Services. This fund is governed by the
Board of Supervisors, and used to account for the activities of Special Districts operating within the unincorporated
area of the County.
COUNTY OF SONOMA, CALIFORNIA
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2022
(Dollars in Thousands)
Special Revenue
Funds
Capital Projects
Fund
Debt Service
Fund Total
ASSETS
Assets:
Cash and investments 237,233$ 67,708$ -$ 304,941$
Cash and investments with trustee 1 - 10,465 10,466
Accounts receivable 5,437 433 - 5,870
Inventories 706 - - 706
Due from other governments 14,469 1,196 - 15,665
Lease receivables 161 - - 161
Prepaid expenses and deposits 465 - - 465
Total assets 258,472$ 69,337$ 10,465$ 338,274$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued salaries and benefits 6,683$ 669$ -$ 7,352$
Due to other funds 1,286 - - 1,286
Due to other governments 989 - - 989
Advances from grantors and third parties 145 - - 145
Deposits from others 10 - - 10
Compensated absences 9 - - 9
Other liabilities 616 - - 616
Total liabilities 9,738 669 - 10,407
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to leases 159 - - 159
Unavailable revenue 312 174 - 486
Total deferred inflows of resources 471 174 - 645
FUND BALANCES
Nonspendable 915 - - 915
Restricted 164,283 - 10,465 174,748
Committed 34,481 - - 34,481
Assigned 48,584 68,494 - 117,078
Total fund balances 248,263 68,494 10,465 327,222
Total liabilities, deferred inflows of resources, and
fund balances 258,472$ 69,337$ 10,465$ 338,274$
115
COUNTY OF SONOMA, CALIFORNIA
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022
(Dollars in Thousands)
Special Revenue
Funds
Capital Projects
Fund
Debt Service
Fund Total
Revenues:
Taxes 38,949$ -$ -$ 38,949$
Licenses, permits and franchise fees 4,266 - - 4,266
Fines, forfeitures and penalties 3,963 - - 3,963
Use of money and property (7,579) (1,327) 5 (8,901)
Intergovernmental 130,743 3,926 - 134,669
Charges for services 7,772 - - 7,772
Other 18,182 1,192 5,257 24,631
Total revenues 196,296 3,791 5,262 205,349
Expenditures:
Current:
General government 9,173 1,285 81 10,539
Public protection 58,150 - - 58,150
Public ways and facilities 34,062 - - 34,062
Health and sanitation 10,363 - - 10,363
Public assistance 28,942 - - 28,942
Recreation and cultural services 9,880 - - 9,880
Capital outlay 41,044 18,228 - 59,272
Debt service:
Principal 763 - 9,830 10,593
Interest and other 21 - 2,904 2,925
Total expenditures 192,398 19,513 12,815 224,726
Excess (deficiency) of revenues over (under)
expenditures 3,898 (15,722) (7,553) (19,377)
Other financing sources (uses):
Transfers in 91,072 67,521 7,678 166,271
Transfers out (25,913) (1,719) - (27,632)
Sale of capital assets - 7 - 7
Total other financing sources (uses)65,159 65,809 7,678 138,646
Net change in fund balance 69,057 50,087 125 119,269
Fund balance, beginning of year 179,206 18,407 10,340 207,953
Fund balance, end of year 248,263$ 68,494$ 10,465$ 327,222$
116
COUNTY OF SONOMA, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Balance Sheet
June 30, 2022
(Dollars in Thousands)
Community
Investment
Agricultural
Preservation
and Open Space
District
Roads
Special
Revenue
Mandated
Revenue
2011
Realignment
Special
Districts Total
ASSETS
Assets:
Cash and investments 14,429$ 16,818$ 65,693$ 63,473$ 59,909$ 16,911$ 237,233$
Cash and investments with trustee - - - 1 - - 1
Accounts receivable 4,977 - 11 444 - 5 5,437
Inventories - - 676 - - 30 706
Due from other governments 75 544 5,521 836 2,508 4,985 14,469
Lease Receivables - - - 161 - - 161
Prepaid items and deposits 17 20 281 139 - 8 465
Total assets 19,498$ 17,382$ 72,182$ 65,054$ 62,417$ 21,939$ 258,472$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable and accrued salaries and
benefits 113$ 593$ 5,745$ 201$ -$ 31$ 6,683$
Due to other funds - - - 200 1,086 - 1,286
Due to other governments - 563 - 356 - 70 989
Advances from grantors and third parties - - - - - 145 145
Deposits from others - - - 10 - - 10
Compensated absences - - - 4 - 5 9
Other liabilities - - 616 - - - 616
Total liabilities 113 1,156 6,361 771 1,086 251 9,738
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to leases - - - 159 - - 159
Unavailable revenue 191 - 121 - - - 312
Total deferred inflows of resources 191 - 121 159 - - 471
FUND BALANCES
Nonspendable 17 20 701 139 - 38 915
Restricted - 3,504 13,813 63,985 61,331 21,650 164,283
Committed 19,177 12,702 2,602 - - - 34,481
Assigned - - 48,584 - - - 48,584
Total fund balances 19,194 16,226 65,700 64,124 61,331 21,688 248,263
Total liabilities, deferred inflows of
resources, and fund balances 19,498$ 17,382$ 72,182$ 65,054$ 62,417$ 21,939$ 258,472$
117
COUNTY OF SONOMA, CALIFORNIA
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2022
(Dollars in Thousands)
Community
Investment
Agricultural
Preservation
and Open Space
District
Roads
Special
Revenue
Mandated
Revenue
2011
Realignment
Special
Districts Total
Revenues:
Taxes 24,623$ -$ -$ -$ -$ 14,326$ 38,949$
Licenses, permits and franchise fees - - 1,218 3,047 - 1 4,266
Fines, forfeitures and penalties - - 817 3,146 - - 3,963
Use of money and property (741) (428) (2,134) (1,307) (2,243) (726) (7,579)
Intergovernmental 801 754 34,257 20,580 72,644 1,707 130,743
Charges for services - - 2,963 3,955 - 854 7,772
Other 724 1,144 543 1,056 14,619 96 18,182
Total revenues 25,407 1,470 37,664 30,477 85,020 16,258 196,296
Expenditures:
Current:
General government 9,017 - - 156 - - 9,173
Public protection - - - 22,663 30,976 4,511 58,150
Public ways and facilities - - 32,746 36 - 1,280 34,062
Health and sanitation - - - - 10,363 - 10,363
Public assistance - - - - 27,568 1,374 28,942
Recreation and cultural services - 9,728 - - - 152 9,880
Capital outlay - 363 39,472 25 - 1,184 41,044
Debt service:
Principal - 200 - 526 - 37 763
Interest and other - 4 - 12 - 5 21
Total expenditures 9,017 10,295 72,218 23,418 68,907 8,543 192,398 ( y)
(under) expenditures 16,390 (8,825) (34,554) 7,059 16,113 7,715 3,898
Other financing sources (uses):
Transfers in 1,177 11,204 76,500 995 - 1,196 91,072
Transfers out (9,563) (18) (1,690) (3,165) - (11,477) (25,913)
Total other financing sources (uses)(8,386) 11,186 74,810 (2,170) - (10,281) 65,159
Net change in fund balances 8,004 2,361 40,256 4,889 16,113 (2,566) 69,057
Fund balance, beginning of year 11,190 13,865 25,444 59,235 45,218 24,254 179,206
Fund balance, end of year 19,194$ 16,226$ 65,700$ 64,124$ 61,331$ 21,688$ 248,263$
118
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Capital Projects Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Use of money and property 2$ 2$ (1,327)$ (1,329)$
Intergovernmental 67,427 65,892 3,926 (61,966)
Other 5,201 5,011 1,192 (3,819)
Total revenues 72,630 70,905 3,791 (67,114)
Expenditures:
General government
Administration Center 10,136 10,143 3,993 6,150
Hall of Justice 117 157 95 62
Main Adult Detention Facility 44,216 43,827 2,451 41,376
Memorial Buildings 3,667 5,223 1,312 3,911
Misc. Capital Projects 20,174 18,192 10,623 7,569
Regional Parks 36,035 34,741 9,306 25,435
Total general government 114,345 112,283 27,780 84,503
Reimbursements - (192) - (192)
Total expenditures 114,345 112,091 27,780 84,311
Excess (deficiency) of revenues over (under)
expenditures (41,715) (41,186) (23,989) 17,197
Other financing sources (uses):
Transfers in 31,337 81,113 70,287 (10,826)
Transfers out (4,506) (5,075) (4,485) 590
Sale of capital assets - - 7 7
Total other financing sources (uses)26,831 76,038 65,809 (10,229)
Net change in fund balances (14,884)$ 34,852$ 41,820 6,968$
GAAP basis difference - encumbrances 8,267
Fund balance, beginning of year 18,407
Fund balance, end of year 68,494$
119
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Debt Service Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Use of money and property 230$ 230$ 5$ (225)$
Other 4,502 4,502 5,257 755
Total revenues 4,732 4,732 5,262 530
Expenditures:
Debt Service
Open Space Bonds 7,502 7,502 7,502 -
Tobacco Settlement Bonds 4,732 5,342 5,313 29
Total expenditures 12,234 12,844 12,815 29
Excess (deficiency) of revenues over (under)
expenditures (7,502) (8,112) (7,553) 559
Other financing sources (uses):
Transfers in 7,502 7,678 7,678 -
Total other financing sources (uses)7,502 7,678 7,678 -
Net change in fund balances -$ (434)$ 125 559$
GAAP basis difference - encumbrances -
Fund balance, beginning of year 10,340
Fund balance, end of year 10,465$
120
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Community Investment Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Taxes 11,775$ 11,775$ 24,623$ 12,848$
Use of money and property - - (741) (741)
Intergovernmental 177 852 801 (51)
Other - 159 724 565
Total revenues 11,952 12,786 25,407 12,621
Expenditures:
General government
Community Investment Fund 1,435 2,451 2,223 228
Economic Development Board 5,603 7,715 7,373 342
Reimbursements (423) (423) (159) (264)
Total expenditures 6,615 9,743 9,437 306
Excess (deficiency) of revenues over (under)
expenditures 5,337 3,043 15,970 12,927
Other financing sources (uses):
Transfers in 1,148 1,243 1,272 29
Transfers out (7,011) (9,829) (9,658) 171
Total other financing sources (uses)(5,863) (8,586) (8,386) 200
Net change in fund balances (526)$ (5,543)$ 7,584 13,127$
GAAP basis difference - encumbrances 420
Fund balance, beginning of year 11,190
Fund balance, end of year 19,194$
121
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Agricultural Preservation and Open Space District Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Use of money and property 145$ 145$ (428)$ (573)$
Intergovernmental 43,635 43,635 11,951 (31,684)
Other 1,850 2,350 1,144 (1,206)
Total revenues 45,630 46,130 12,667 (33,463)
Expenditures:
Recreation and cultural services 45,619 51,255 14,947 36,308
Reimbursements - - (568) 568
Total expenditures 45,619 51,255 14,379 36,876
Excess (deficiency) of revenues over (under)
expenditures 11 (5,125) (1,712) 3,413
Other financing sources (uses):
Transfers in 1,314 1,314 236 (1,078)
Transfers out (665) (665) (247) 418
Lease inception - 683 - (683)
Total other financing sources (uses)649 1,332 (11) (1,343)
Net change in fund balances 660$ (3,793)$ (1,723) 2,070$
GAAP basis difference - encumbrances 4,084
Fund balance, beginning of year 13,865
Fund balance, end of year 16,226$
122
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Roads Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Licenses, permits and franchised fees 1,390$ 1,390$ 1,218$ (172)$
Fines, forfeitures and penalties 300 300 817 517
Use of money and property 474 474 (2,134) (2,608)
Intergovernmental 52,979 52,979 34,257 (18,722)
Charges for services 1,836 1,836 2,963 1,127
Other 114 114 543 429
Total revenues 57,093 57,093 37,664 (19,429)
Expenditures:
Public ways and facilities
Roads Division 97,103 102,916 89,387 13,529
Reimbursements (15,469) (15,469) (15,425) (44)
Total expenditures 81,634 87,447 73,962 13,485
Excess (deficiency) of revenues over (under)
expenditures (24,541) (30,354) (36,298) (5,944)
Other financing sources (uses):
Transfers in 55,465 77,222 76,579 (643)
Transfers out (2,205) (3,260) (1,769) 1,491
Total other financing sources (uses)53,260 73,962 74,810 848
Net change in fund balances 28,719$ 43,608$ 38,512 (5,096)$
GAAP basis difference - encumbrances 1,744
Fund balance, beginning of year 25,444
Fund balance, end of year 65,700$
123
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Mandated Revenues Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Licenses, permits and franchised fees 2,560$ 2,560$ 3,047$ 487$
Fines, forfeitures and penalties 2,107 2,107 3,146 1,039
Use of money and property 738 751 (1,307) (2,058)
Intergovernmental 16,716 16,757 20,580 3,823
Charges for services 4,085 4,085 3,955 (130)
Other 359 359 1,056 697
Total revenues 26,565 26,619 30,477 3,858
Expenditures:
General government
County Clerk-Recorder-Assessor - Assessor 110 110 34 76
General Services - Tidelands Leases 121 392 147 245
Total general government 231 502 181 321
Public protection
County Clerk-Recorder-Assessor
Recorder 3,176 3,518 2,846 672
Agriculture / Weights & Measures 65 65 40 25
Child Support Services 12,809 14,354 11,648 2,706
Court Support and Grand Jury 80 80 49 31
District Attorney 2,777 2,881 1,135 1,746
Fire Prevention 1,805 1,805 1,572 233
Permit & Resource Management 2,410 2,445 1,235 1,210
Public Defender 415 415 198 217
Probation 3,477 3,485 2,991 494
Sheriff
Detention 225 232 186 46
Law Enforcement 3,979 4,050 1,668 2,382
Total public protection 31,218 33,330 23,568 9,762
Public ways and facilities
Transportation & Public Works Special
Projects 24 24 7 17
Special Projects 600 600 36 564
Recreation and cultural services:
Regional Parks Restricted Donations - 200 - 200
Reimbursements (262) (262) (257) (5)
Total expenditures 31,811 34,394 23,535 10,859
Excess (deficiency) of revenues over (under)
expenditures (5,246) (7,775) 6,942 14,717
Other financing sources (uses):
Transfers in 491 891 1,090 199
Transfers out (13,022) (12,020) (3,260) 8,760
Lease inception - 1,798 - (1,798)
Total other financing sources (uses)(12,531) (9,331) (2,170) 7,161
Net change in fund balances (17,777)$ (17,106)$ 4,772 21,878$
GAAP basis difference - encumbrances 117
Fund balance, beginning of year 59,235
Fund balance, end of year 64,124$
124
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
2011 Realignment Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with Final
Budget Positive
(Negative)
Revenues:
Use of money and property 455$ 455$ (2,243)$ (2,698)$
Intergovernmental 63,993 68,693 72,644 3,951
Other 3,136 3,136 14,619 11,483
Total revenues 67,584 72,284 85,020 12,736
Expenditures:
Public protection
District Attorney 441 533 526 7
Probation 24,524 24,524 19,896 4,628
Public Defender 311 311 311 -
Sheriff
Law Enforcement 10,499 10,499 9,151 1,348
Detention 1,091 1,091 1,091 -
Total public protection 36,866 36,958 30,975 5,983
Health and sanitation
Health Services - Special revenue 11,223 11,223 10,363 860
Public assistance
Human Services - Special revenue 25,799 30,499 27,569 2,930
Total expenditures 73,888 78,680 68,907 9,773
Excess (deficiency) of revenues over (under)
expenditures (6,304) (6,396) 16,113 22,509
Net change in fund balances (6,443)$ (6,535)$ 16,113 22,648$
GAAP basis difference - encumbrances -
Fund balance, beginning of year 45,218
Fund balance, end of year 61,331$
125
COUNTY OF SONOMA, CALIFORNIA
Budgetary Comparison Schedule
Special Districts Special Revenue Fund
For the Fiscal Year Ended June 30, 2022
(Dollars in Thousands)
Budgeted Amounts
Original Final
Actual Amounts
(Budgetary Basis)
Variance with
Final Budget
Positive (Negative)
Revenues:
Taxes 12,450$ 12,450$ 14,326$ 1,876$
Licenses, permits and franchises - - 1 1
Use of money and property 157 157 (726) (883)
Intergovernmental 1,258 1,258 1,707 449
Charges for services 994 1,000 854 (146)
Other - - 96 96
Total revenues 14,859 14,865 16,258 1,393
Expenditures:
Public protection
CSA #40 Fire Services District 2,341 3,201 3,200 1
PRMD - Fire Prevention 2,764 2,862 2,066 796
Fire & Emergency Services - County Facility 245 909 906 3
Rio Nido Geo Haz Abatement District 10 10 - 10
Total Public Protection 5,360 6,982 6,172 810
Public ways and facilities
County Services Area #41
Countywide Lighting 1,508 1,564 759 805
Airport Business Center 55 55 - 55
Roseland - 561 561 -
Permanent Road Districts 137 137 63 74
Total Public Ways and facilities 1,700 2,317 1,383 934
Public assistance
In Home Support Services Public Authority 1,420 1,471 1,383 88
Recreation and cultural services:
CSA #41 District Parks 160 160 151 9
Total Recreation and cultural services:160 160 151 9
Reimbursements (425) (425) (1) (424)
Total expenditures 8,215 10,505 9,088 1,841
Excess (deficiency) of revenues over (under)
expenditures 6,644 4,360 7,170 2,810
Other financing sources (uses):
Transfers in 1,218 1,276 1,198 (78)
Transfers out (12,794) (12,835) (11,479) 1,356
Lease inception - 51 - (51)
Total other financing sources (uses)(11,576) (11,508) (10,281) 1,227
Net change in fund balances (4,932)$ (7,148)$ (3,111) 4,037$
GAAP basis difference - encumbrances 545
Fund balance, beginning of year 24,254
Fund balance, end of year 21,688$
126
N ONMAJOR E NTERPRISE F UNDS
FAIR
This fund was established to account for the activities of the Sonoma County Fair and Exposition, Inc. (the Fair),
which operates through an agreement with the County to act as its agent with regard to the operation of the
Sonoma County Fairgrounds.
MARINAS
The Marinas Enterprise Fund accounts for the operations of Spud Point Marina, Mason’s Marina and the Sport
Fishing Center located in Bodega Bay.
OTHER DISTRICTS
This fund was established to account for the activities of various small enterprise funds. Components of this fund
are four small water systems within the County Service Area (CSA), including Fitch Mountain, Salmon Creek,
Freestone, and Jenner, plus Sea Ranch Zone #2. The CSA zones provide water services and are under the control
of the Board of Supervisors.
COUNTY OF SONOMA, CALIFORNIA
Nonmajor Enterprise Funds
Combining Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Fair Marinas Other Districts Total
ASSETS
Current assets:
Cash and investments 1,183$ 778$ 1,584$ 3,545$
Cash and investments with trustee 6,794 26 - 6,820
Restricted cash and investments 1,621 - - 1,621
Accounts receivable 576 587 3 1,166
Inventories - 102 - 102
Due from other governments 52 - - 52
Advances to other governments - - 17 17
Prepaid expenses and deposits - 18 - 18
Total current assets 10,226 1,511 1,604 13,341
Noncurrent assets:
Net pension asset - 67 - 67
Capital assets:
Nondepreciable 1,297 2,489 274 4,060
Depreciable, net 9,384 2,450 3,747 15,581
Total noncurrent assets 10,681 5,006 4,021 19,708
Total assets 20,907 6,517 5,625 33,049
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts related to pensions 388 118 - 506
Deferred amounts related to OPEB 223 39 - 262
Total deferred outflows of resources 611 157 - 768
LIABILITIES
Current liabilities:
Accounts payable 836 121 19 976
Due to other funds - - 13 13
Due to other governments - 91 (3) 88
Deposits from others 108 161 - 269
Interest payable - 15 9 24
Compensated absences 219 21 - 240
Advances from other governments - 356 24 380
Notes payable 477 - - 477
Loans payable - 2 2 4
Other liabilities 122 174 - 296
Total current liabilities 1,762 941 64 2,767
Noncurrent portion of long-term liabilities:
Advances from other funds - - 56 56
Advances from other governments - - 887 887
Loans payable - 3 - 3
Net pension liabilities 728 - - 728
Net OPEB liabilities 1,070 186 - 1,256
Total noncurrent liabilities 1,798 189 943 2,930
Total liabilities 3,560 1,130 1,007 5,697
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to pensions 693 335 - 1,028
Deferred amounts related to OPEB 325 49 - 374
Total deferred inflows of resources 1,018 384 - 1,402
NET POSITION
Net investment in capital assets 10,681 4,578 3,107 18,366
Restricted for junior livestock auction 159 - - 159
Restricted for capital asset maintenance 121 - - 121
Restricted for endowment 1,303 - - 1,303
Restricted - other 38 - 150 188
Unrestricted 4,638 582 1,361 6,581
Total net position 16,940$ 5,160$ 4,618$ 26,718$
128
COUNTY OF SONOMA, CALIFORNIA
Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
For the Year Ended June 30, 2022
(Dollars in Thousands)
Fair Marinas Other Districts Total
Operating revenues:
Charges for services -$ 1,368$ 1,016$ 2,384$
Rents and concessions 8,668 1,243 - 9,911
Sales and miscellaneous - 267 1 268
Total operating revenues 8,668 2,878 1,017 12,563
Operating expenses:
Services and supplies 2,689 1,913 1,208 5,810
Salaries and employee benefits 2,633 730 - 3,363
Depreciation and amortization 831 134 205 1,170
Total operating expenses 6,153 2,777 1,413 10,343
Operating income (loss)2,515 101 (396) 2,220
Nonoperating revenues (expenses):
Investment income (loss)84 (31) (45) 8
Interest expense (7) (17) (27) (51)
Miscellaneous 1,201 - - 1,201
Total nonoperating revenues (expenses)1,278 (48) (72) 1,158
Income (loss) before transfers 3,793 53 (468) 3,378
Transfers in - 388 20 408
Transfers out - (1) - (1)
Total transfers - 387 20 407
Change in net position 3,793 440 (448) 3,785
Net position, beginning of year 13,147 4,720 5,066 22,933
Net position, end of year 16,940$ 5,160$ 4,618$ 26,718$
129
COUNTY OF SONOMA, CALIFORNIA
Nonmajor Enterprise Funds
Combining Statement of Cash Flows
For the Year Ended June 30, 2022
(Dollars in Thousands)
Fair Marinas Other Districts Total
Cash flows from operating activities:
Received from customers 8,723$ 2,923$ 1,018$ 12,664$
Payments to suppliers for goods and services (2,466) (2,150) (1,204) (5,820)
Payments to employees for services (3,060) (838) - (3,898)
Net cash provided (used) by operating activities 3,197 (65) (186) 2,946
Cash flows from noncapital financing activities:
Transfers in - 388 20 408
Transfers out - (1) - (1)
Advances to other funds - - (13) (13)
Contributions 662 - - 662
Net cash provided (used) by noncapital financing activities 662 387 7 1,056
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (243) (187) - (430)
Principal paid on capital debt (56) - - (56)
Principal paid on loans - (2) (8) (10)
Due from other governments - (15) (3) (18)
Advances to other governments - (341) (24) (365)
Interest paid - (31) (27) (58)
Net cash (used) by capital and related financing activities (299) (576) (62) (937)
Cash flows from investing activities:
Interest received (loss) on investments 153 (31) (45) 77
Net cash provided by (used in) investing activities 153 (31) (45) 77
Net increase (decrease) in cash and cash equivalents 3,713 (285) (286) 3,142
Cash and cash equivalents, beginning of year 5,885 1,089 1,870 8,725
Cash and cash equivalents, end of year 9,598$ 804$ 1,584$ 11,986$
Reconciliation of operating income (loss) to net cash provided (used)
by operating activities:
Operating income (loss)2,515$ 101$ (396)$ 2,220$
Depreciation and amortization 831 134 205 1,170
Net pension activity (281) (67) - (348)
Net OPEB activity (115) (26) - (141)
Changes in assets and liabilities:
Decrease (increase) in:
Accounts receivable 163 45 1 209
Inventories - (40) - (40)
Other assets (49) (10) - (59)
Increase (decrease) in:-
Accounts payable 223 (186) 4 41
Compensated absences (31) (15) - (46)
Other liabilities (59) (1) - (60)
Net cash provided (used) by operating activities 3,197$ (65)$ (186)$ 2,946$
Reconciliation of cash and cash equivalents to the Statement of Net
Position:
Cash and investments 1,183$ 778$ 1,584$ 3,545$
Cash and investments with trustee 6,794 26 - 6,820
Restricted cash and investments 1,621 - - 1,621
Total cash and cash equivalents 9,598$ 804$ 1,584$ 11,986$
130
I NTERNAL S ERVICE F UNDS
These funds account for the financing of goods or services provided by one department or agency to other
departments or agencies within the County and to various other governmental agencies. They are exempt from
legal compliance for budgetary control and follow economic resources measurement focus and accrual basis of
accounting for a determination of operating, rather than budgetary, results. Their major source of revenue
consists of charges to user departments for services rendered. These charges are based upon standard rates
calculated on an estimated cost recovery basis. A more detailed description of the funds established and used by
the County follows:
INSURANCE
This fund was established to account for the operations of the County's self-insurance programs, which cover
general liability, medical malpractice, workers' compensation, health, long-term disability, and unemployment
insurance.
HEAVY EQUIPMENT REPLACEMENT
This fund was established for the dual purposes of (1) paying General Services Fleet Operations for the cost of
heavy equipment maintenance and operations based on usage, and (2) accumulating funds for the future
replacement of heavy equipment. Revenue is primarily derived from equipment rental charges to the Road
Department, which utilizes the heavy equipment.
ENTERPRISE RESOURCE PLANNING SYSTEM
This fund was established to provide funding for the administration of the County’s Human Resources
Management and Enterprise Financial Systems. Costs associated with the administration of these global systems
are allocated to departments that utilize the systems.
EMPLOYEE RETIREMENT
This fund was established to account for pension related activities related to governmental funds. It is used to
collect charges from departments through bi-weekly payroll which are disbursed as contributions to the pension
plan and debt service payments for the pension obligation bonds.
OTHER POSTEMPLOYMENT BENEFITS (OPEB)
This fund was established to account for other postemployment related activities related to governmental funds.
It is used to collect charges from departments through bi-weekly payroll which are disbursed as contributions to
the OPEB plan.
COUNTY OF SONOMA, CALIFORNIA
Internal Service Funds
Combining Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Insurance
Heavy
Equipment
Replacement ERP System
Employee
Retirement
Other
Postemployment
Benefits (OPEB)Total
ASSETS
Current assets:
Cash and investments 93,863$ 3,814$ 8,642$ 8,146$ 7,434$ 121,899$
Cash and investments with trustee 994 - - 3 - 997
Accounts receivable, net 520 43 13 98 9 683
Due from other funds 200 - - - - 200
Due from other governments 51 - - - - 51
Prepaid expenses 3 33 306 - - 342
Total current assets 95,631 3,890 8,961 8,247 7,443 124,172
Noncurrent assets:
Net pension asset 572 - 201 61,000 - 61,773
Capital assets:
Nondepreciable - 174 609 - - 783
Depreciable, net - 5,248 4,312 - - 9,560
Total noncurrent assets 572 5,422 5,122 61,000 - 72,116
Total assets 96,203 9,312 14,083 69,247 7,443 196,288
DEFERRED OUTFLOWS OF RESOURCES
Deferred amounts related to pensions 1,382 - 934 178,344 - 180,660
Deferred amounts related to OPEB 250 - - - 29,896 30,146
Total deferred outflows of resources 1,632 - 934 178,344 29,896 210,806
LIABILITIES
Current liabilities:
Accounts payable 897 145 64 3,385 - 4,491
Due to other funds 50 - 1,542 - - 1,592
Interest payable - - - 1,218 - 1,218
Compensated absences 223 - 54 - - 277
Self-funded insurance 13,389 - - - - 13,389
Lease liability - - 90 - - 90
Bonds payable - - - 42,935 - 42,935
Other liabilities 2,821 - - - - 2,821
Total current liabilities 17,380 145 1,750 47,538 - 66,813
Noncurrent portion of long-term liabilities:
Self-funded insurance 47,238 - - - - 47,238
Compensated absences 162 - 148 - - 310
Advances from other funds - - 3,744 - - 3,744
Lease liability - - 342 - - 342
Bonds payable - - - 204,945 - 204,945
Net OPEB liabilities 1,262 - - - 145,698 146,960
Total noncurrent liabilities 48,662 - 4,234 204,945 145,698 403,539
Total liabilities 66,042 145 5,984 252,483 145,698 470,352
DEFERRED INFLOWS OF RESOURCES
Deferred amounts related to pensions 2,947 - 1,004 319,263 - 323,214
Deferred amounts related to OPEB 354 - - - 34,414 34,768
Total deferred inflows of resources 3,301 - 1,004 319,263 34,414 357,982
NET POSITION
Net investment in capital assets - 5,422 4,489 - - 9,911
Unrestricted (deficit)28,492 3,745 3,540 (324,155) (142,773) (431,151)
Total net position (deficit)28,492$ 9,167$ 8,029$ (324,155)$ (142,773)$ (421,240)$
132
COUNTY OF SONOMA, CALIFORNIA
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
For the Year Ended June 30, 2022
(Dollars in Thousands)
Insurance
Heavy
Equipment
Replacement ERP System
Employee
Retirement
Other
Postemployment
Benefits (OPEB)Total
Operating revenues:
Charges for services 42,765$ -$ 11,172$ 121,935$ 32,720$ 208,592$
Rents and concessions - 2,825 - - - 2,825
Sales and miscellaneous 4,268 22 - - - 4,290
Total operating revenues 47,033 2,847 11,172 121,935 32,720 215,707
Operating expenses:
Services and supplies 20,801 2,015 7,040 - - 29,856
Salaries and employee benefits 4,420 - 2,027 (1,536) 9,015 13,926
Claim expenses 19,016 - - - - 19,016
Depreciation and amortization - 817 1,580 - - 2,397
Total operating expenses 44,237 2,832 10,647 (1,536) 9,015 65,195
Operating income 2,796 15 525 123,471 23,705 150,512
Nonoperating revenues (expenses):
Investment income (loss)(2,808) (76) (147) (636) (144) (3,811)
Interest expense - - (3) (15,486) - (15,489)
Gain (Loss) on disposal of capital assets - 151 - - - 151
Total nonoperating revenues (expenses)(2,808) 75 (150) (16,122) (144) (19,149)
Income (loss) before transfers (12) 90 375 107,349 23,561 131,363
Transfers in 146 1,200 29 3,750 - 5,125
Transfers out (16) - (217) - - (233)
Total transfers 130 1,200 (188) 3,750 - 4,892
Change in net position 118 1,290 187 111,099 23,561 136,255
Net position (deficit), beginning of year 28,374 7,877 7,842 (435,254) (166,334) (557,495)
Net position (deficit), end of year 28,492$ 9,167$ 8,029$ (324,155)$ (142,773)$ (421,240)$
133
COUNTY OF SONOMA, CALIFORNIA
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended June 30, 2022
(Dollars in Thousands)
Insurance
Heavy
Equipment
Replacement ERP System
Employee
Retirement
Other
Postemployment
Benefits (OPEB)Total
Cash flows from operating activities:
Receipts from interfund services provided 46,293$ 2,804$ 11,028$ 45,580$ 10,093$ 115,798$
Payments to suppliers for goods and services (41,283) (1,875) (6,975) - (8) (50,141)
Payments to employees for services (571) - (1,825) - (9,015) (11,411)
Net cash provided by operating activities 4,439 929 2,228 45,580 1,070 54,246
Cash flows from noncapital financing activities:
Transfers in 146 1,200 29 3,750 - 5,125
Transfers out (16) - (217) - - (233)
Due from other funds 400 - - - - 400
Due to other funds (100) - - - - (100)
Advances to other funds - - (1,542) - - (1,542)
Deposits from others (23) - - - - (23)
Due to other governments 134 - - - - 134
Principal paid on bonds - - - (38,810) - (38,810)
Interest paid - - - (15,660) - (15,660)
Net cash provided (used) by noncapital financing
activities 541 1,200 (1,730) (50,720) - (50,709)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets - (465) (341) - - (806)
Interest paid - - (3) - - (3)
Net cash (used) by capital and related financing
activities - (465) (344) - - (809)
Cash flows from investing activities:
Interest received (loss) on investments (2,808) (76) (147) (636) (144) (3,811)
Net cash provided by (used in) investing activities (2,808) (76) (147) (636) (144) (3,811)
Net increase (decrease) in cash and cash equivalents 2,172 1,588 7 (5,776) 926 (1,083)
Cash and cash equivalents, beginning of year 92,685 2,226 8,635 13,925 6,508 123,979
Cash and cash equivalents, end of year 94,857$ 3,814$ 8,642$ 8,149$ 7,434$ 122,896$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)2,796$ 15$ 525$ 123,471$ 23,705$ 150,512$
Depreciation and amortization - 817 1,580 - - 2,397
Net pension activity (556) - (131) (77,977) - (78,664)
Net OPEB activity (192) - - - (22,625) (22,817)
Changes in assets and liabilities:
Decrease (increase) in:
Accounts receivable 8 (43) (13) (68) (2) (118)
Prepaid expenses (3) (1) 57 - - 53
Increase (decrease) in:
Accounts payable 276 141 8 154 (8) 571
Compensated absences 12 - 202 - - 214
Self-funded insurance 3,837 - - - - 3,837
Other liabilities (1,739) - - - - (1,739)
Net cash provided (used) by operating activities
4,439$ 929$ 2,228$ 45,580$ 1,070$ 54,246$
Noncash investing, capital and financing activities:
Right-to-use lease acquisitions -$ -$ 432$ -$ -$ 432$
Reconciliation of cash and cash equivalents to the
Statement of Net Position:
Cash and investments 93,863$ 3,814$ 8,642$ 8,146$ 7,434$ 121,899$
Cash and investments with trustee 994 - - 3 - 997
Total cash and cash equivalents 94,857$ 3,814$ 8,642$ 8,149$ 7,434$ 122,896$
134
N ONMAJOR D ISCRETELY P RESENTED C OMPONENT U NITS
These nonmajor discretely presented component units account for the goods and services provided by these
component units. See also Note 1 of the Basic Financial Statements:
SONOMA VALLEY COUNTY SANITATION DISTRICT
RUSSIAN RIVER COUNTY SANITATION DISTRICT
SOUTH PARK COUNTY SANITATION DISTRICT
OCCIDENTAL COUNTY SANITATION DISTRICT
COUNTY OF SONOMA, CALIFORNIA
Discretely Presented Nonmajor Component Units
Combining Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Sonoma Valley
County
Sanitation
District
Russian River
County
Sanitation
District
South Park
County
Sanitation
District
Occidental
County
Sanitation
District Total
ASSETS
Cash and investments 17,891$ 3,178$ 12,562$ 1,002$ 34,633$
Restricted cash and investments 5,343 367 424 - 6,134
Receivables, net 745 379 212 52 1,388
Due from other governments 38 729 - - 767
Prepaid expenses and deposits 1 - - - 1
Capital assets:
Nondepreciable 12,486 745 131 345 13,707
Depreciable, net 67,761 19,653 18,362 4,049 109,825
Total assets 104,265 25,051 31,691 5,448 166,455
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 6 - 50 - 56
Total deferred outflows of resources 6 - 50 - 56
LIABILITIES
Accounts payable and accrued liabilities 774 1,216 252 28 2,270
Interest payable 217 17 - - 234
Long-term liabilities:
Due within one year 2,106 322 194 - 2,622
Due in more than one year 12,196 1,455 2,725 - 16,376
Total liabilities 15,293 3,010 3,171 28 21,502
NET POSITION
Net investment in capital assets 67,158 18,621 17,525 4,394 107,698
Restricted 4,094 367 418 - 4,879
Unrestricted 17,726 3,053 10,627 1,026 32,432
Total net position 88,978$ 22,041$ 28,570$ 5,420$ 145,009$
136
COUNTY OF SONOMA, CALIFORNIA
Discretely Presented Nonmajor Component Units
Combining Statement of Activities
For the Year Ended June 30, 2022
(Dollars in Thousands)
Program Revenues
Expenses Services
Operating Grants and
Contributions Contributions
FUNCTION/PROGRAM ACTIVITIES:
Component units:
Sonoma Valley Sanitation District 15,740$ 18,236$ 383$ 63$
Russian River Sanitation District 6,274 5,711 - 1,298
South Park Sanitation District 3,358 4,551 55 -
Occidental Sanitation District 1,437 390 700 225
Total component units 26,809$ 28,888$ 1,138$ 1,586$
GENERAL REVENUES:
Unrestricted investment earnings (loss)
Total general revenues and transfers
Change in net position
Net position, beginning of year
Net position, end of year
137
Net (Expense) Revenue and Changes in Net Position
Nonmajor Discrete Component Units
Sonoma Valley
County
Sanitation
District
Russian River
County
Sanitation
District
South Park
County
Sanitation
District
Occidental
County
Sanitation
District Total
FUNCTION/PROGRAM ACTIVITIES:
Component units:
2,942$ -$ -$ -$ 2,942$ Sonoma Valley Sanitation District
735 - - 735 Russian River Sanitation District
- - 1,248 - 1,248 South Park Sanitation District
- - - (122) (122) Occidental Sanitation District
2,942 735 1,248 (122) 4,803 Total component units
GENERAL REVENUES:
(652) (53) (377) 6 (1,076) Unrestricted investment earnings (loss)
(652) (53) (377) 6 (1,076) Total general revenues and transfers
2,290 682 871 (116) 3,727 Change in net position
86,688 21,359 27,699 5,536 141,282 Net position, beginning of year
88,978$ 22,041$ 28,570$ 5,420$ 145,009$ Net position, end of year
138
P ENSION (AND O THER E MPLOYEE B ENEFIT)
T RUST F UNDS
S ONOMA C OUNTY E MPLOYEES’ R ETIREMENT A SSOCIATION (SCERA)
SCERA is a cost‐sharing, multiple‐employer Defined Benefit Pension Plan (Plan) legally separate entity from the
County (Sonoma County).
O THER P OSTEMPLOYMENT B ENEFITS (OPEB) T RUST
The Plan is a single employer defined benefit plan which is administered by the County. The County established
an OPEB trust with the Public Agency Retirement Services (PARS) in 2008 to accumulate resources to fund future
benefit payments of the Plan.
COUNTY OF SONOMA, CALIFORNIA
Pension (and Other Employee Benefit) Trust Funds
Combining Statement of Net Position
June 30, 2022
(Dollars in Thousands)
Sonoma County
Employees'
Retirement
Association (SCERA)
Other
Postemployment
Benefits (OPEB)
Trust
Total
Pension (and Other
Employee Benefit)
Trust Funds
ASSETS
Cash and investments 1,595$ -$ 1,595$
Restricted investments with trustee 265,550 - 265,550
Accounts receivable 71,405 - 71,405
Investments at fair value:
Cash and equivalents - 4,819 4,819
Mutual funds - 77,560 77,560
Corporate obligations 174,507 7,504 182,011
Government obligations 264,139 9,103 273,242
Equities 2,134,078 - 2,134,078
Other investments 854,425 - 854,425
Total investments 3,427,149 98,986 3,526,135
Other assets 1,969 - 1,969
Total assets 3,767,668 98,986 3,866,654
LIABILITIES
Accounts payable and other liabilities 3,668 - 3,668
Other liabilities 242,639 - 242,639
Total liabilities 246,307 - 246,307
NET POSITION (DEFICIT)
Restricted for:
Pension 3,521,361 - 3,521,361
Other postemployment benefits - 98,986 98,986
Total net position (deficit)3,521,361$ 98,986$ 3,620,347$
See accompanying notes to the basic financial statements
140
COUNTY OF SONOMA, CALIFORNIA
Pension (and Other Employee Benefit) Trust Funds
Combining Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
(Dollars in Thousands)
Sonoma County
Employees'
Retirement
Association (SCERA)
Other
Postemployment
Benefits (OPEB)
Trust
Total
Pension (and Other
Employee Benefit)
Trust Funds
ADDITIONS
Contributions:
Employer contributions 74,953$ 37,216$ 112,169$
Employee contributions 49,056 - 49,056
OPEB employer contributions outside of
trust - 2,575 2,575
Total contributions 124,009 39,791 163,800
Investment earnings:
Net increase (decrease) in fair value of
investments 496,115 (5,258) 490,857
Interest, dividends, and other 49,276 (7,766) 41,510
Total investment earnings (loss)545,391 (13,024) 532,367
Less investment costs:
Investment expense 23,275 278 23,553
Net investment earnings (loss)522,116 (13,302) 508,814
Miscellaneous 122 - 122
Total additions 646,247 26,489 672,736
DEDUCTIONS
Benefits paid to participants or beneficiaries 193,130 25,126 218,256
Employer Plan Expense 2,604 - 2,604
OPEB employer expense outside of trust - 2,575 2,575
Administrative expenses 2,827 1,355 4,182
Total deductions 198,561 29,056 227,617
Net increase (decrease) in fiduciary net
position 447,686 (2,567) 445,119
Net position (deficit), beginning 3,073,675 101,553 3,175,228
Net position (deficit), ending 3,521,361$ 98,986$ 3,620,347$
See accompanying notes to the basic financial statements
141
C USTODIAL F UNDS
C USTODIAL E XTERNAL I NVESTMENT P OOL F UNDS
External investment pool used to report custodial activities for participants that voluntarily deposit funds into
the County’s Treasury.
CMSP Trust
County Medical Services Program (CMSP) was established in January 1983, when California law transferred
responsibility for providing health care services to uninsured indigent adults from the State of California to
California Counties. Thirty-five counties currently participate in CMSP. CMSP is governed by an independent
governing board.
Fire Insurance Proceeds
Accounting for Fire related private property debris removal program and insurance proceeds reimbursements
collected on behalf of the State (Cal-OES) and Federal (FEMA) agencies.
Other External Investment Pool Funds
Conservator trusts, payments to benefit providers, and assistance programs.
O THER C USTODIAL F UNDS
Custodial activities for participants that are required by law to deposit funds into the County’s Treasury.
MTC Trust
Under Transportation Development Act of 1971 as administered by the Metropolitan Transportation Commission
(MTC). Disbursements are made by the County upon receipt of allocation authorizations and disbursement
instructions issued by the MTC.
Taxes
Tax collections, refunds, and apportionments due to others outside of the County.
Sales Tax
Sales tax collections and apportionments due to others outside of the County.
Special Assessment Trust
The funding for this fund comes from a special assessment levied against property holders.
Other
Collections on behalf of other governments.
CSMP Trust
Fire Insurance
Proceeds
Other External
Investment Pool
Funds Total
ASSETS
Cash and investments 333,957$ 87,474$ 8,667$ 430,098$
Restricted investments with trustee - - 899 899
Accounts receivable - - 31 31
Total assets 333,957 87,474 9,597 431,028
LIABILITIES
Accounts payable and other liabilities - - 192 192
Due to other governments - 89,386 - 89,386
Other liabilities - 22 2,580 2,602
Total liabilities - 89,408 2,772 92,180
NET POSITION
Restricted for:
Pool participants 333,957 (1,934) 6,825 338,848
Total net position 333,957$ (1,934)$ 6,825$ 338,848$
COUNTY OF SONOMA, CALIFORNIA
Custodial External Investment Pool Funds
Combining Statement of Net Position
June 30, 2022
(Dollars in Thousands)
143
CSMP Trust
Fire Insurance
Proceeds
Other External
Investment Pool
Funds Total
ADDITIONS
Investment earnings:
Net increase (decrease) in fair value of
investments (11,860)$ (3,109)$ (169)$ (15,138)$
Interest, dividends, and other 2,025 507 10 2,542
Total investment earnings (loss)(9,835) (2,602) (159) (12,596)
Net investment earnings (loss)(9,835) (2,602) (159) (12,596)
Licenses and fees - - 86 86
Miscellaneous - (6) 71,600 71,594
Total additions (9,835) (2,608) 71,527 59,084
DEDUCTIONS
Payments to other governments 23,367 - 70,618 93,985
Administrative expense - - 28 28
Total deductions 23,367 - 70,646 94,013
Net increase (decrease) in fiduciary net
position (33,202) (2,608) 881 (34,929)
Net position, beginning 367,159 674 5,944 373,777
Net position, ending 333,957$ (1,934)$ 6,825$ 338,848$
Custodial External Investment Pool Funds
Combining Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
(Dollars in Thousands)
COUNTY OF SONOMA, CALIFORNIA
144
MTC Trust Taxes Sales Tax
Special
Assessment
Trust Other Total
ASSETS
Cash and investments 32,146$ 3,339$ 8,324$ 2,673$ 6,490$ 52,972$
Restricted investments with trustee - - - - 342 342
Accounts receivable - 36,270 - - 10,345 46,615
Due from other Govts 7,119 - - - - 7,119
Other assets - 284 - - 839 1,123
Total assets 39,265 39,893 8,324 2,673 18,016 108,171
LIABILITIES
Accounts payable and other liabilities - 416 - 17 1,906 2,339
Due to other governments - 8,242 3,768 - 40 12,050
Other liabilities - 436 - - 11,984 12,420
Total liabilities - 9,094 3,768 17 13,930 26,809
NET POSITION (DEFICIT)
Restricted for:
Organizations and other governments 39,265 30,799 4,556 2,656 4,086 81,362
Total net position (deficit)39,265$ 30,799$ 4,556$ 2,656$ 4,086$ 81,362$
COUNTY OF SONOMA, CALIFORNIA
Other Custodial Funds
Combining Statement of Net Position
June 30, 2022
(Dollars in Thousands)
145
MTC Trust Taxes Sales Tax
Special
Assessment
Trust Other Total
ADDITIONS
Investment earnings:
Net increase (decrease) in fair value of
investments (1,145)$ (2,136)$ (297)$ (93)$ (135)$ (3,806)$
Interest, dividends, and other 172 209 18 16 10,171 10,586
Total investment earnings (loss)(973) (1,927) (279) (77) 10,036 6,780
Less investment costs:
Investment expense - 16 - 320 40 376
Net investment earnings (loss)(973) (1,943) (279) (397) 9,996 6,404
Property taxes - 134,394 - 1,030 10,580 146,004
Other taxes 31,858 374 - - - 32,232
License and fees - (4,375) 68,277 5,957 12,894 82,753
Miscellaneous 2,689 139 781 6,784 13,597 23,990
Total additions 33,574 128,589 68,779 13,374 47,067 291,383
DEDUCTIONS
Payments to other governments 23,292 127,126 66,524 6,264 35,980 259,186
Administrative expenses - - - - 2,692 2,692
Total deductions 23,292 127,126 66,524 6,264 38,672 261,878
Net increase (decrease) in fiduciary
net position 10,282 1,463 2,255 7,110 8,395 29,505
Net position (deficit), beginning 28,983 29,336 2,301 (4,454) (4,309) 51,857
Net position (deficit), ending 39,265$ 30,799$ 4,556$ 2,656$ 4,086$ 81,362$
(Dollars in Thousands)
COUNTY OF SONOMA, CALIFORNIA
Other Custodial Funds
Combining Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
146
CONTENTS
Pages
Financial Trends
Trend information reflecting the County’s financial performance over the past 10 years 149-160
Revenue Capacity
Information on the County’s most significant local revenue source, the property tax 161-164
Debt Capacity
Information on the County’s current levels of outstanding debt and on the capacity for issuing
additional debt in the future 165-168
Economic and Demographic Information
Indicators on the environment within which the County’s financial activities take place 169-172
Operating Information
Service and infrastructure data relating the County’s financial statistics to services and activities
within the County provides 173-176
STATISTICAL SECTION
This section of the County’s Annual Comprehensive Financial Report presents detailed information as a context for
understanding what the information in the financial statements,note disclosures,and required supplementary
information says about the County’s overall financial health.
(UNAUDITED)
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Net Position By Category (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
(Accrual Basis of Accounting)
2012-13 (1)
as restated
2013-14 (2)
as restated
2014-15 (3)
as restated 2015-16
2016-17 (4)
as restated
Governmental activities
Net investment in capital assets 1,040,466$ 1,088,783$ 1,113,783$ 1,163,262$ 1,192,407$
Restricted 234,551 243,497 223,011 210,531 209,960
Unrestricted 55,683 (524,188) (481,556) (456,299) (457,536)
Total governmental activities net position 1,330,700$ 808,092$ 855,238$ 917,494$ 944,831$
Business-type activities
Net investment in capital assets 99,990 113,075 137,860 145,735 155,959
Restricted 883 412 1,038 4,265 7,440
Unrestricted (16,116) 11,585 8,695 7,058 (2,806)
Total business-type activities net position 84,757$ 125,072$ 147,593$ 157,058$ 160,593$
Total government
Net investment in capital assets 1,140,456 1,201,858 1,251,643 1,308,997 1,348,366
Restricted 235,434 243,909 224,049 214,796 217,400
Unrestricted 39,567 (512,603) (472,861) (449,241) (460,342)
Total primary government net position 1,415,457$ 933,164$ 1,002,831$ 1,074,552$ 1,105,424$
Notes:
(1) FY 2012-13 net position was restated for the implementation of GASB 65.
(2) FY 2013-14 net position was restated primarily for the implementation of GASB 68 related to pension.
(3) FY 2014-15 Business-type activities net position was restated for SCEIP consolidation with Public Financing Authority Trust Funds (PFA)
(4) FY 2016-17 net position was restated for the implementation of GASB 75 related to OPEB for the County
(5) FY2017-18 net position was restated for the implementation of GASB 75 related to OPEB for the Sonoma County Fair
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
149
STATISTICAL SECTION
2017-18 (5)
as restated 2018-19 2019-20 2020-21 2021-22
Governmental activities
1,208,423$ 1,251,617$ 1,293,820$ 1,359,263$ 1,397,357$ Net investment in capital assets
227,882 265,519 281,953 351,841 423,220 Restricted
(649,958) (594,644) (522,223) (219,676) (74,255) Unrestricted
786,347$ 922,492$ 1,053,550$ 1,491,428$ 1,746,322$ Total governmental activities net position
Business-type activities
162,020 150,286 149,934 149,102 158,458 Net investment in capital assets
10,390 11,715 16,654 20,640 23,452 Restricted
(7,695) 6,541 8,109 13,197 26,224 Unrestricted
164,715$ 168,542$ 174,697$ 182,939$ 208,134$ Total business-type activities net position
Total government
1,370,443 1,401,903 1,443,754 1,508,365$ 1,555,815$ Net investment in capital assets
238,272 277,234 298,607 372,481 446,672 Restricted
(657,653) (588,103) (514,114) (206,479) (48,031) Unrestricted
951,062$ 1,091,034$ 1,228,247$ 1,674,367$ 1,954,456$ Total primary government net position
).
150
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Expenses By Function (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
(Accrual Basis of Accounting)
2012-13
2013-14 (1)
as restated 2014-15 2015-16 2016-17
Expenses
Governmental activities
General government 87,504$ 89,881$ 95,094$ 109,637$ 104,166$
Public protection 241,671 243,619 272,963 281,574 310,466
Public ways and facilities 33,573 47,887 36,868 38,964 47,670
Health and sanitation 116,742 118,391 118,085 132,071 135,564
Public assistance 186,547 200,026 201,913 212,754 220,772
Education 605 840 1,020 1,056 1,118
Recreation and cultural services 12,465 13,147 14,482 16,004 33,174
Interest on long-term debt 43,801 37,978 37,598 35,344 29,136
Total governmental activities expenses 722,908$ 751,769$ 778,023$ 827,404$ 882,066$
Business-type activities
Refuse 32,803 32,532 26,492 5,494 9,935
Airport 4,283 4,223 4,743 5,330 7,596
Energy Independence Program 3,681 2,723 2,566 2,581 2,458
Transit 15,967 17,484 16,762 17,923 18,816
Fair 10,743 10,072 13,645 10,661 7,199
Marinas 2,284 2,214 2,708 2,213 2,497
Other business-type activities 1,885 1,789 1,235 1,035 1,238
Total business-type activities expenses 71,646$ 71,037$ 68,151$ 45,237$ 49,739$
Total primary government 722,980$ 751,840$ 778,091$ 872,641$ 931,805$
Notes:
(1) FY 2013-14 Refuse restated expenses for adjustment to closure/post closure liability and abandonment of capital asset.
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
151
STATISTICAL SECTION
2017-18 2018-19 2019-20 2020-21 2021-22
Expenses
Governmental activities
112,173$ 93,172$ 120,051$ 174,850$ 188,199$ General government
306,078 331,051 326,507 315,399 324,378 Public protection
52,302 43,324 52,321 41,555 42,276 Public ways and facilities
136,228 134,918 124,539 126,113 150,633 Health and sanitation
208,901 220,590 213,416 211,766 222,131 Public assistance
1,122 1,182 1,237 1,047 1,049 Education
33,943 27,355 28,405 28,821 33,273 Recreation and cultural services
28,219 26,295 24,259 21,752 19,365 Interest on long-term debt
878,966$ 877,887$ 890,735$ 921,303$ 981,304$ Total governmental activities expenses
Business-type activities
4,331 6,706 4,971 5,500 5,968 Refuse
8,821 9,941 10,844 11,028 12,342 Airport
2,253 2,299 2,306 2,417 2,056 Energy Independence Program
19,309 20,252 20,410 18,505 20,387 Transit
11,495 10,818 11,222 5,954 6,160 Fair
2,332 2,734 2,678 2,843 2,794 Marinas
1,092 1,135 1,050 1,104 1,440 Other business-type activities
49,633$ 53,885$ 53,481$ 47,351$ 51,147$ Total business-type activities expenses
928,599$ 931,772$ 944,216$ 968,654$ 1,032,451$ Total primary government
152
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Changes in Net Position (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
(Accrual Basis of Accounting)
2012-13 2013-14 2014-15 2015-16 2016-17
Program Revenue
Governmental activities
Charges for services
General government 53,062$ 46,308$ 41,223$ 52,021$ 40,057$
Public protection 32,987 29,345 32,776 34,737 35,029
Public ways and facilities 59 43 371 395 407
Health and sanitation 8,055 6,275 6,780 6,501 13,938
Public assistance 12,938 18,021 8,190 9,173 3,499
Recreation and cultural services 4,011 4,329 4,640 5,193 5,763
Total charges for services 111,112 104,321 93,980 108,020 98,693
Operating grants and contributions 406,152 437,904 426,888 471,383 464,039
Capital grants and contributions 11,116 4,832 7,754 3,102 4,013
Total governmental activities 528,380 547,057 528,622 582,505 566,745
Business - type activities
Charges for services
Refuse 34,930 37,993 29,343 7,380 6,661
Airport 4,056 4,285 4,589 4,935 5,764
Energy Independence Program 2,110 1,957 3,000 2,845 2,658
Transit 2,193 2,165 2,000 2,035 1,825
Fair 9,455 9,597 12,353 11,520 9,204
Marinas 2,241 2,312 2,858 2,145 2,343
Other business-type activities 1,904 1,711 1,106 1,078 1,158
Total charges for services 56,889 60,020 55,249 31,938 29,613
Operating grants and contributions 10,584 12,253 12,238 13,232 13,937
Capital grants and contributions 2,340 31,828 21,369 7,712 10,467
Total business - type activities program revenues 69,813 104,101 88,856 52,882 54,017
Total primary government program revenues 598,193$ 651,158$ 617,478$ 635,387$ 620,762$
Net (Expense) Revenue
Governmental activities (178,351)$ (194,528)$ (204,172)$ (249,401)$ (244,899)$
Business - type activities 2,610 (1,833) 28,182 20,705 7,645
Total primary government net expenses (175,741)$ (196,361)$ (175,990)$ (228,696)$ (237,254)$
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
153
STATISTICAL SECTION
2017-18 2018-19 2019-20 2020-21 2021-22
Program Revenue
Governmental activities
Charges for services
38,026$ 40,737$ 43,365$ 43,588$ 45,322$ General government
37,181 45,579 43,133 41,047 40,142 Public protection
4,025 3,766 4,503 4,601 5,379 Public ways and facilities
12,583 10,842 9,925 10,470 11,299 Health and sanitation
1,544 1,421 1,242 1,358 1,618 Public assistance
5,577 5,992 5,453 7,761 7,412 Recreation and cultural services
98,936 108,337 107,621 108,825 111,172 Total charges for services
514,968 501,263 510,514 633,524 651,763 Operating grants and contributions
3,071 3,318 2,143 3,681 4,635 Capital grants and contributions
616,975 612,918 620,278 746,030 767,570 Total governmental activities
Business - type activities
Charges for services
7,223 7,619 7,950 8,069 7,407 Refuse
7,053 6,888 5,054 6,359 8,339 Airport
2,313 2,033 1,937 1,603 1,619 Energy Independence Program
1,957 1,804 1,180 212 791 Transit
11,268 12,260 11,230 5,131 8,668 Fair
2,264 2,396 2,467 2,882 2,878 Marinas
1,233 803 1,102 1,129 1,017 Other business-type activities
33,311 33,803 30,920 25,385 30,719 Total charges for services
15,335 16,960 18,729 21,099 23,639 Operating grants and contributions
2,868 3,255 5,357 6,195 18,753 Capital grants and contributions
51,514 54,018 55,006 52,679 73,111 Total business - type activities program revenues
668,489$ 666,936$ 675,284$ 798,709$ 840,681$ Total primary government program revenues
Net (Expense) Revenue
(315,321)$ (261,991)$ (264,969)$ (175,273)$ (213,734)$ Governmental activities
4,278 1,881 133 5,328 21,964 Business - type activities
(311,043)$ (260,110)$ (264,836)$ (169,945)$ (191,770)$ Total primary government net expenses
154
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Net Expense By Function (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
(Accrual Basis of Accounting)
2012-13 2013-14 2014-15 2015-16 2016-17
Net (expense) revenue
Governmental activities (194,528)$ (204,712)$ (249,401)$ (244,899)$ (315,321)$
Business-type activities (1,833) 28,182 20,705 7,645 4,278
Total primary government net expense (196,361) (176,530) (228,696) (237,254) (311,043)
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property 183,429 193,221 208,316 222,211 233,256
Documentary transfer 4,301 4,439 4,953 5,541 6,047
Transient occupancy 9,705 11,037 16,759 14,188 17,701
Grants and other governmental revenues not
restricted to specific programs 34,360 38,474 39,153 40,686 42,813
Unrestricted investment earnings 8,068 11,305 6,157 8,331 7,778
Other 20,875 16,808 22,561 17,583 36,532
Transfers (886) (1,163) (1,464) (1,385) (1,469)
Special/Extraordinary item - - - - -
Total governmental activities 259,852 274,121 296,435 307,155 342,658
Business-type activities:
Unrestricted investment earnings 1,681 2,186 25 370 367
Other 568 548 70 65 (25)
Transfers 886 1,163 1,464 1,385 1,469
Special item 1,343 - - - -
Total business-type activities 4,478 3,897 1,559 1,820 1,811
Total primary government 264,330$ 278,018$ 297,994$ 308,975$ 344,469$
Changes in net position:
Governmental activities 65,324 69,409 47,034 62,256 27,337
Business-type activities 2,645 32,079 22,264 9,465 6,089
Total primary government 67,969$ 101,488$ 69,298$ 71,721$ 33,426$
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
155
STATISTICAL SECTION
2017-18 2018-19 2019-20 2020-21 2021-22
Net (expense) revenue
(261,991)$ (264,969)$ (270,457)$ (175,273)$ (213,734)$ Governmental activities
1,881 133 1,525 5,328 21,964 Business-type activities
(260,110) (264,836) (268,932) (169,945) (191,770) Total primary government net expense
General revenues and other changes in net position:
Governmental activities:
Taxes:
245,274 259,239 274,643 290,134 304,492 Property
6,201 5,585 6,817 9,071 9,378 Documentary transfer
22,237 22,377 16,234 24,289 32,830 Transient occupancy
48,721 53,018 55,566 66,463 95,805
Grants and other governmental revenues not
restricted to specific programs
10,907 22,758 15,402 7,304 (23,419) Unrestricted investment earnings
38,688 39,617 44,753 217,255 51,793 Other
(1,328) (1,480) (1,599) (1,365) (2,251) Transfers
(1,367) - (10,301) - - Special/Extraordinary item
369,333 401,114 411,816 613,151 468,628 Total governmental activities
Business-type activities:
868 2,283 1,592 264 (1,980) Unrestricted investment earnings
45 2,066 1,439 1,285 2,960 Other
1,328 1,480 1,599 1,365 2,251 Transfers
- - - - - Special item
2,241 5,829 4,630 2,914 3,231 Total business-type activities
372,941$ 406,943$ 416,446$ 616,065$ 471,859$ Total primary government
Changes in net position:
107,342 136,145 131,058 437,878 254,894 Governmental activities
4,122 5,962 6,155 8,242 25,195 Business-type activities
111,464$ 142,107$ 137,213$ 446,120$ 280,089$ Total primary government
156
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Fund Balances of Governmental Funds (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
(Accrual Basis of Accounting)
2012-13
2013-14 (1)
as restated 2014-15 2015-16 2016-17
General Fund
Nonspendable 5,179$ 13,023$ 12,074$ 14,673$ 12,974$
Restricted - - - - -
Committed 240 153 90 3 3
Assigned 45,743 50,694 64,400 73,592 76,290
Unassigned 48,479 47,658 55,325 57,497 60,403
Subtotal General Fund 99,641 111,528 131,889 145,765 149,670
All Other Governmental Funds
Nonspendable 2,566 4,045 5,456 4,326 3,973
Restricted 242,054 239,446 235,532 222,475 221,115
Committed 3,217 3,806 6,873 7,024 5,373
Assigned 28,429 34,065 31,309 48,785 42,193
Unassigned (609) - (412) - -
Subtotal all other governmental funds 275,657 281,362 278,758 282,610 272,654
Total governmental fund balance 375,298$ 392,890$ 410,647$ 428,375$ 422,324$
Notes:
(1) FY 2013-14 fund balance was restated due to misclassified business-type activity of $112
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
157
STATISTICAL SECTION
2017-18 2018-19 2019-20 2020-21 2021-22
General Fund
11,306$ 8,966$ 11,037$ 8,457$ 9,074$ Nonspendable
- - - - 889 Restricted
5 15 14 124 153 Committed
86,444 111,584 146,306 276,514 202,488 Assigned
53,224 71,294 37,870 91,118 67,266 Unassigned
150,979 191,859 195,227 376,213 279,870 Subtotal general fund
All Other Governmental Funds
3,771 3,763 3,687 3,752 4,147 Nonspendable
237,938 275,209 289,226 364,392 434,130 Restricted
8,860 9,152 6,847 13,358 34,481 Committed
46,980 46,491 39,248 27,133 117,078 Assigned
- - - - - Unassigned
297,549 334,615 339,008 408,635 589,836 Subtotal all other governmental funds
448,528$ 526,474$ 534,235$ 784,848$ 869,706$ Total governmental fund balance
158
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Changes in Fund Balances of Governmental Funds (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
(Accrual Basis of Accounting)
2012-13
2013-14 (1)
as restated 2014-15 2015-16 2016-17
Revenues (by source):
Taxes 231,920$ 247,203$ 269,220$ 282,665$ 299,817$
Licenses, permits and franchise fees 21,962 23,360 24,315 28,577 29,169
Fines, forfeitures and penalties 24,978 13,312 17,182 24,836 12,995
Use of money and property 7,276 9,919 5,954 7,561 7,130
Intergovernmental 401,810 440,438 432,396 469,363 468,052
Charges for services 74,580 67,657 52,483 54,607 56,529
Other 20,422 16,782 21,495 29,495 32,061
Total revenues 782,948 818,671 823,045 897,104 905,753
Expenditures (by function):
Current:
General government 85,869 91,087 97,029 108,126 99,429
Public protection 243,245 249,862 268,532 281,466 307,874
Public ways and facilities 25,991 41,824 29,197 30,496 39,023
Health and sanitation 122,133 123,730 122,444 135,081 137,342
Public assistance 195,708 210,568 210,166 218,413 224,976
Education 611 837 836 1,032 1,087
Recreation and cultural services 12,037 12,812 14,309 15,231 32,276
Capital outlay 32,643 46,142 39,679 39,986 52,458
Debt service:
Principal 12,149 20,573 8,509 82,754 9,957
Interest 17,838 13,169 13,178 18,697 6,981
Total expenditures 748,224 810,604 803,879 931,282 911,403
Excess (deficiency) of revenues over
(under) expenditures 34,724 8,067 19,166 (34,178) (5,650)
Other financing sources (uses):
Transfers in 79,641 82,821 86,587 143,129 80,486
Transfers out (80,543) (84,445) (88,797) (141,950) (81,597)
Lease inception - - - - -
Issuance of long-term debt 594 10,640 299 43,335 17,225
Premium on long term debt issuance - - - 7,044 -
Sale of capital assets 125 509 390 348 551
Other financing sources/(uses)- - - - (17,066)
Total other financing sources and uses (183) 9,525 (1,521) 51,906 (401)
Special/Extraordinary item - - - - -
Net change in fund balances 34,541 17,592 17,645 17,728 (6,051)
Fund balances, beginning of year, as restated 340,757 375,298 393,002 410,647 428,375
Fund balances, end of year 375,298$ 392,890$ 410,647$ 428,375$ 422,324$
Debt service as a percentage of noncapital
expenditures 4.19%4.41%2.84%11.38%1.97%
Notes:
(1) FY 2013-14 fund balance was restated due to misclassified business-type activity
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
159
STATISTICAL SECTION
2017-18 2018-19 2019-20 2020-21 2021-22
Revenues (by source):
322,433$ 340,219$ 353,260$ 389,957$ 442,505$ Taxes
29,509 34,078 33,698 32,187 34,332 Licenses, permits and franchise fees
13,129 16,247 16,951 16,500 13,867 Fines, forfeitures and penalties
9,632 19,058 13,547 6,995 (19,608) Use of money and property
518,038 504,581 512,657 637,215 656,398 Intergovernmental
56,299 58,012 56,972 60,138 62,973 Charges for services
35,267 46,826 29,921 222,792 50,903 Other
984,307 1,019,021 1,017,006 1,365,784 1,241,370 Total revenues
Expenditures (by function):
Current:
114,791 88,279 117,547 193,864 209,491 General government
322,852 340,814 350,655 360,635 366,833 Public protection
33,607 35,228 47,653 37,392 34,248 Public ways and facilities
146,623 141,141 136,668 147,393 169,754 Health and sanitation
225,460 231,592 234,557 247,687 251,907 Public assistance
1,161 1,132 1,187 1,169 1,173 Education
35,279 27,188 28,505 31,835 36,531 Recreation and cultural services
59,425 58,318 58,918 85,139 71,266 Capital outlay
Debt service:
11,473 9,368 9,753 22,574 21,543 Principal
6,338 6,008 5,506 5,509 4,667 Interest
957,009 939,068 990,949 1,133,197 1,167,413 Total expenditures
27,298 79,953 26,057 232,587 73,957
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses):
97,898 121,415 148,265 144,610 241,566 Transfers in
(98,866) (124,507) (156,760) (145,754) (248,709) Transfers out
- - - - 2,046 Lease inception
2,300 654 - 66,636 - Issuance of long-term debt
- - - 7,746 - Premium on long term debt issuance
1,080 431 486 755 - Sale of capital assets
- - - (55,967) 15,998 Other financing sources/(uses)
2,412 (2,007) (8,009) 18,026 10,901 Total other financing sources and uses
(3,506) - (10,287) - - Special/Extraordinary item
26,204 77,946 7,761 250,613 84,858 Net change in fund balances
422,324 448,528 526,474 534,235 784,848 Fund balances, beginning of year, as restated
448,528$ 526,474$ 534,235$ 784,848$ 869,706$ Fund balances, end of year
1.98%1.75%1.64%2.68%2.39%
Debt service as a percentage of noncapital
expenditures
160
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Assessed Value of Taxable Property (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
Fiscal Year Secured (1)Unsecured (2)Exempt (3)
Total Taxable
Assessed Value (4)
Total Direct
Tax Rate (4)
2012-13 65,424,659$ 2,394,378$ (2,514,061)$ 65,304,976$ 1.00
2013-14 68,023,890 2,402,413 (2,740,545) 67,685,758 1.00
2014-15 73,289,559 2,476,588 (2,916,461) 72,849,686 1.00
2015-16 78,257,731 2,681,992 (3,116,014) 77,823,709 1.00
2016-17 82,727,351 2,659,027 (3,171,082) 82,215,296 1.00
2017-18 85,835,554 2,758,806 (3,139,460) 85,454,900 1.00
2018-19 90,472,427 2,908,430 (3,212,531) 90,168,326 1.00
2019-20 96,098,191 3,241,273 (3,502,462) 95,837,002 1.00
2020-21 101,928,048 3,538,887 (3,786,024) 101,680,911 1.00
2021-22 105,018,299 3,700,904 (3,724,094) 104,995,109 1.00
Notes:
(1) Secured property is generally real property, defined as land, mines, minerals, timber, and improvements such as
buildings, structures, crops, trees, and vines.
(2) Unsecured property is generally personal property including machinery, equipment, office tools, and supplies.
(3) Exempt properties include numerous full and partial exclusions/exemptions provided by the State Constitution and
the legislature that relieve certain taxpayers from the burden of paying property taxes.
(4) Due to the 1978 passage of the property tax initiative Proposition 13 (Prop 13) the County does not track the estimated
actual value of all County properties. Under Prop 13 property is assessed at the 1978 market value with an annual increase
limited to the lesser of 2%, the CPI on properties not involved in a change of ownership, or properties that did not
undergo new construction. Newly acquired property is assessed at its new market value (usually the purchase price)
and the value of any new construction is added to the existing base value of a parcel. As a result, similar properties can
have substantially different assessed values based on the date of purchase. Additionally, Prop 13 limits the property tax
rate to 1% of assessed value plus the rate necessary to fund local voter-approved bonds and special assessments.
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
161
STATISTICAL SECTION
COUNTY OF SONOMA, CALIFORNIA
Property Tax Rates - Direct and Overlapping Governments (Unaudited)
Last Ten Fiscal Years
County Direct Rates (1)Overlapping Rates (1)
Fiscal Year County Other
County Direct
Rate Cities (2)
School Districts
(3)Special Districts Total
2012-13 0.21326 0.78674 1.0000 0.06500 0.02597 0.01174 1.10271
2013-14 0.21332 0.78668 1.0000 0.05200 0.02603 0.01259 1.09061
2014-15 0.21282 0.78718 1.0000 0.05700 0.02561 0.01170 1.09431
2015-16 0.21305 0.78695 1.0000 0.10700 0.02440 0.01263 1.14403
2016-17 0.21333 0.78667 1.0000 0.10700 0.02440 0.02440 1.15580
2017-18 0.21352 0.78648 1.0000 0.10700 0.02438 0.01152 1.14290
2018-19 0.21416 0.78584 1.0000 0.10700 0.02395 0.01298 1.14393
2019-20 0.21460 0.78540 1.0000 0.10700 0.02343 0.01317 1.14360
2020-21 0.21460 0.78540 1.0000 0.10700 0.02380 0.01290 1.14370
2021-22 0.21381 0.78619 1.0000 0.09800 0.02234 0.00997 1.13031
Notes:
(1) County Direct Rates are ad valorem taxes levied by the County as authorized by Article 13A of the Constitution
of the state of California. Overlapping rates are taxes levied to service voter-approved debt of overlapping jurisdictions
such as a school district or local city.
(2) Rates represent the weighted average of the nine incorporated cities within the County of Sonoma.
(3) Rates represent the weighted average of the various school district tax rate areas within the County of Sonoma.
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
162
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Principal Revenue Taxpayers (Unaudited)
June 30, 2022 and June 30, 2013
(Dollar Amounts in Thousands)
June 30, 2022:June 30, 2013:
Taxpayer Total Taxes (1)Rank
Percentage of Total
County Taxes Total Taxes (1)Rank
Percentage of Total
County Taxes
Pacific Gas & Electric Co.21,247$ 1 1.66%8,714$ 2 1.13%
Geysers Power Co. LLC 14,184 2 1.11 11,314 1 1.46
Keysight Technologies Inc.3,169 3 0.25 1,602 4 0.21
Foley Family Farms LP 1,904 4 0.15
Enclave Apartments LLC 1,753 5 0.14
Pacific Bell Telephone Co.1,751 6 0.14 1,718 3 0.22
Jackson Family Investments LLC 1,410 7 0.11
Foley Family Farms LLC 1,231 8 0.10
Gallo Vineyards Inc.1,192 9 0.09
CWI-Fairmont Sonoma Hotel 1,191 10 0.09
Ferrari-Carano Vineyards 961 5 0.12
EMI Santa Rosa LTD 927 6 0.12
Constellation Wines US Inc.841 7 0.11
Varenna at Fountaingrove 835 8 0.11
Silverado Sonoma Vineyards 797 9 0.10
CPN Wild Horse GeoThermal 779 10 0.10
Total 49,032$ 3.84%28,488$ 3.69%
Total taxes of all taxpayers (2)1,276,303$ 772,787$
Notes:
(1) Taxable Assessed Secured amounts.
(2) Obtained from Property Tax Statistics Summary.
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
Sonoma County Comprehensive Annual Financial Report, Fiscal Year Ended June 30, 2013
163
STATISTICAL SECTION
COUNTY OF SONOMA, CALIFORNIA
Property Tax Levies and Collections (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
Collections within the Collections in
Taxes Fiscal Year of the Levy (2)Subsequent Total Collections to Date
Fiscal Year Levied (1)Amount % of Levy Years Amount % of Levy
2012-13 653,050$ 641,750$ 98.3%10,839$ 652,589$ 99.9%
2013-14 676,858 667,922 98.7%8,491 676,413 99.9%
2014-15 728,497 721,075 99.0%6,950 728,025 99.9%
2015-16 778,237 770,592 99.0%7,025 777,617 99.9%
2016-17 822,153 815,344 99.2%6,088 821,432 99.9%
2017-18 852,241 844,872 99.1%8,686 853,557 100.2%
2018-19 901,683 893,578 99.1%6,583 900,161 99.8%
2019-20 958,370 946,295 98.7%9,311 955,606 99.7%
2020-21 1,016,809 1,003,959 98.7%8,636 1,012,595 99.6%
2021-22 1,049,951 1,036,501 98.7%- 1,036,501 98.7%
Notes:
(1) Secured and unsecured tax levy for the County itself, school districts, cities, and special districts under
the supervision of their own governing boards.
(2) Included are amounts collected by the County on behalf of itself, school districts, cities, and special districts
under the supervision of their own governing boards.
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
164
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Ratios of Outstanding Debt (Unaudited)
Last Ten Fiscal Years
(Dollars Amounts in Thousands)
Governmental Activities
Fiscal Year
Certificates of
Participation Bonds Payable
Pension Obligation
Bonds
Notes
Payable Loans Payable
2012-13 32,471$ 90,700$ 472,255$ 1,925$ 75,856$
2013-14 28,264 87,425 459,165 875 75,513
2014-15 25,384 84,020 443,565 - 76,246
2015-16 22,356 48,865 425,250 - 74,490
2016-17 20,212 43,645 404,185 - 72,423
2017-18 16,538 38,180 379,925 3,360 69,633
2018-19 14,929 32,440 352,370 - 67,974
2019-20 13,170 26,406 321,415 - 66,485
2020-21 11,252 83,461 286,690 840 -
2021-22 9,189 73,631 247,880 - -
Business-Type Activities
Fiscal Year
Certificates of
Participation
Energy
Independence
Bonds
Notes and Loans
Payable
Advances From Other
Governments
Landfill Closure and
Postclosure (4)
2012-13 3,200$ 47,648$ 810$ 12,358$ 52,778$
2013-14 1,635 45,988 15,700 12,066 -
2014-15 - 42,449 8,419 9,817 -
2015-16 - 38,250 7,217 8,799 4,834
2016-17 - 33,556 4,215 7,829 9,993
2017-18 - 30,307 448 6,595 9,831
2018-19 - 28,311 17,357 2,369 9,508
2019-20 - 25,128 16,857 1,985 NA
2020-21 - 23,356 17,146 1,632 NA
2021-22 - 23,695 16,160 1,267 NA
Ratios based on Total Primary Debt
Fiscal Year Population (1)
Percentage of
Assessed Value (2)
Percentage of
Personal Income Per Capita (3)
2012-13 490,423 1.22%3.39%1,628
2013-14 490,486 1.08%2.98%1,479
2014-15 496,253 0.96%2.59%1,388
2015-16 501,959 0.82%2.37%1,266
2016-17 505,120 0.73%2.12%1,200
2017-18 503,332 0.67%2.00%1,132
2018-19 500,675 0.60%1.79%1,076
2019-20 492,980 0.50%1.45%971
2020-21 484,207 0.47%1.34%988
2021-22 482,404 0.42%1.11%907
Notes:
(1) Population Estimate as of January 1, 2021
(2) See the "Assessed Value of Taxable Property and Actual Value of Property" table for total taxable assessed value.
Assessed value does not include tax exempt property.
(3) See the "Demographic and Economic Statistics" table for population figures. Ratio is calculated using population
for the latest calendar year for each corresponding fiscal year.
(4) FY2019-20 long-term contract payable and Land fill closure and postclosure determined to be long-term liability
not debt, noted as not applicable or NA.
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
165
STATISTICAL SECTION
s
Long-Term Contract
Payable (4)
Financed Purchase
Obligations
Unamortized
Premiums Subtotal Fiscal Year
-$ 4,315$ 3,630$ 681,152$ 2012-13
- 3,728 3,432 658,402 2013-14
- 3,390 3,234 635,839 2014-15
- 2,862 6,550 580,373 2015-16
- 2,419 5,623 548,507 2016-17
5,958 4,113 4,696 522,403 2017-18
5,296 4,407 3,913 481,329 2018-19
- 3,937 3,130 434,543 2019-20
- 3,380 9,826 395,449 2020-21
- 2,907 8,777 342,384 2021-22
s
Financed Purchase
Obligations Unamortized Loss Subtotal
Total Primary
Government Fiscal Year
669$ (100)$ 117,363$ 798,515$ 2012-13
266 - 75,655 734,057 2013-14
- - 60,685 696,524 2014-15
- - 59,100 639,473 2015-16
- - 55,593 604,100 2016-17
- - 47,181 569,584 2017-18
- - 57,545 538,874 2018-19
- - 43,970 478,513 2019-20
- - 42,134 437,583 2020-21
- - 41,122 383,506 2021-22
166
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Computation of Legal Debt Margin (Unaudited)
Last Ten Fiscal Years
(Dollar Amounts in Thousands)
Fiscal Year
Assessed
Value (1)Legal Debt Limit (2)
Debt Applicable to
Limit (3)Legal Debt Margin (4)
Legal Debt
Margin/Debt Limit
2012-13 65,304,976$ 1,306,100$ - 1,306,100$ 100%
2013-14 67,685,758 1,353,715 - 1,353,715 100%
2014-15 72,849,686 1,456,994 - 1,456,994 100%
2015-16 77,823,709 1,556,474 - 1,556,474 100%
2016-17 82,215,296 1,644,306 - 1,644,306 100%
2017-18 85,454,900 1,709,098 - 1,709,098 100%
2018-19 90,168,326 1,803,367 - 1,803,367 100%
2019-20 95,837,002 1,916,740 - 1,916,740 100%
2020-21 101,680,911 2,033,618 - 2,033,618 100%
2021-22 104,995,109 2,099,902 - 2,099,902 100%
Notes:
(1) Assessed Value does not include tax exempt property. Property value data is located in the "Assessed Value
of Taxable Property and Actual Value of Property" schedule.
(2) Legal debt limit is 2.00% of assessed value.
(3) Debt applicable to limit only includes general obligation bonds, of which the County has none.
(4) Legal debt margin is the County's available borrowing authority under state finance statutes, and is calculated
by subtracting the debt applicable to the legal debt limit from the legal debt limit.
Source:
Sonoma County Auditor-Controller-Treasurer-Tax Collector
167
STATISTICAL SECTION
COUNTY OF SONOMA, CALIFORNIA
Schedule of Direct And Overlapping Debt (Unaudited)
June 30, 2022
(Dollar Amounts in Thousands)
2021-22 Taxable Assessed Valuation:104,995,109$
Overlapping Debt and Tax Assessment Debt (1)
Percentage Applicable to
Sonoma County Taxable
Assessed Valuation Debt Outstanding
High School Districts 100% $ 253,946
Unified School Districts 100% 597,192
Elementary Districts 100% 347,672
Santa Rosa Junior College 100%324,890
Sonoma County Water Agency 100%65,895
Total Overlapping Debt and Tax Assessment Debt 1,589,595$
Direct Debt (1)
Debt
Outstanding
Percentage Applicable to
Sonoma County Taxable
Assessed Valuation
Debt Outstanding
applicable to taxable
assessed valuation
Sonoma County Certificates of Participation $ 9,189 100% $ 9,189
Sonoma County Bonds Payable 82,408 100% 82,408
Sonoma County Pension Obligation Bonds 247,880 100% 247,880
Sonoma County Notes Payable - 100% -
Sonoma County Capital Leases 2,907 100%2,907
Total Direct Debt 342,384$ 342,384$
Total Combined Overlapping and Direct Debt 1,931,979$
Assessed Valuation Ratio:
Total Overlapping Tax and Assessment Debt 1.51%
Total Direct Debt 0.33%
Total Combined Overlapping and Direct Debt 1.84%
Notes:
(1) Direct debt is an obligation of the County whereas overlapping debt is an obligation of other governments within
the geographic boundary of the County. Excludes tax and revenue anticipation notes.
Source:
Sonoma County Water Agency Comprehensive Annual Financial Report, Fiscal Year Ended June 30, 2021
Sonoma County Auditor-Controller-Treasurer-Tax Collector
168
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Demographics and Economic Statistics (Unaudited)
Last Ten Fiscal Years
Calendar Year
Estimated
Population
Personal
Income (1)
Per Capita
Personal Income School Enrollment
Unemployment
Rate
2013 490,423 22,126,957$ 45,118$ 70,637 7.1%
2014 490,486 23,548,182 48,010 70,932 5.7%
2015 496,253 24,606,709 49,585 71,096 4.3%
2016 501,959 26,874,652 53,540 71,131 4.1%
2017 505,120 27,034,022 53,520 70,940 3.6%
2018 503,332 28,457,348 56,538 70,449 2.4%
2019 500,675 30,183,693 60,286 69,734 2.8%
2020 492,980 32,889,161 66,715 68,194 11.6%
2021 484,207 35,601,803 73,526 66,450 5.8%
2022 482,404 39,359,689 81,591 64,802 2.7%
Incorporated Cities Population:
Cloverdale 8,905
Cotati 7,397
Healdsburg 11,030
Petaluma 58,945
Rohnert Park 43,998
Santa Rosa 175,775
Sebastopol 7,489
Sonoma 10,779
Town of Windsor 25,942
Total Incorporated 350,260
Total Unincorporated Areas 132,144
Total Population 482,404
Notes:
(1) Personal Income of all County residents in thousands and estimated as of November 2022.
Sources:
California Department of Finance, E-1 Population Estimates for Cities, Counties, and the State -
January 1, 2022
US Department of Commerce, Bureau of Economic Analysis - Regional Data of GDP and Personal Income
(BEARFACTS); estimates based on November 2022
California Department of Education; Data Enrollment by Grade report for 2021-22
California Employment Development Department: Labor Force Statistics
Economic Development Dept. -Local Area Unemployment Map for Counties, as of June 2022
169
STATISTICAL SECTION
COUNTY OF SONOMA, CALIFORNIA
Major Employers (Unaudited)
June 30, 2022 and June 30, 2013
June 30, 2022 June 30, 2013
Employer
Number of
Employees Rank
Percent of Total
County
Employment
Number of
Employees Rank
Percent of Total
County
Employment
County of Sonoma 3,827 1 1.57%4,258 1 1.76%
Kaiser Permanente 3,130 2 1.29 2,700 4 1.11
Santa Rosa City Schools 1,607 3 0.66 1,628 10 0.67
Santa Rosa Junior College 1,528 4 0.63 3,381 2 1.39
Providence (St. Joseph Health)1,476 5 0.61 2,669 5 1.10
City of Santa Rosa 1,247 6 0.51
Sonoma State University 1,210 7 0.50 1,785 9 0.74
Sutter Santa Rosa Regional Hospital 1,200 8 0.49
Jackson Family Wines 1,082 9 0.44
Oliver's Market 976 10 0.40
State of California 2,950 3 1.22
Keysight Technologies (Agilent)2,350 6 0.97
JDS Uniphase 1,800 7 0.74
United States Government 1,800 8 0.74
Ten largest Employer's 17,283 7.10%25,321 10.44%
All other employer's 226,017 92.90%217,079 89.56%
Total Employees 243,300 100.00%242,400 100.00%
Sources:
County of Sonoma Adopted Budget Schedules 2021-2022, 2012-2013
North Bay Business Journal Book of Lists
State of California, State Employee Demographics
Sonoma State University Fact Book (as of December 2021)
City of Santa Rosa ACFR (as of June 30, 2021)
State of California Employment Development Department: Labor Force Statistics
County of Sonoma Comprehensive Annual Financial Report 2012-2013
170
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
County Employees By Function (Unaudited)
Last Ten Fiscal Years
FTE'S:2012-13 2013-14 2014-15 2015-16
General Government
Board of Supervisors / County Administrator 32 35 37 39
General Services 116 119 119 111
County Clerk-Assessor-Recorder-PA 114 118 109 102
Auditor-Controller / Treasurer-Tax Collector 97 96 92 88
County Counsel 36 38 38 39
Human Resources 50 56 57 55
Information Systems 107 107 117 100
Economic Development 11 12 10 12
Public Protection
District Attorney 114 120 121 115
Public Defender 52 52 49 49
Sheriff 634 648 635 603
Probation 278 285 286 291
Permit and Resource Management 102 101 108 105
Emergency Services 27 27 24 23
Child Support Services 102 99 98 85
Agricultural Commissioner 37 41 32 32
Northern Sonoma County Air Pollution Control 6 6 6 6
Public Assistance
Human Services and IHSS 698 784 836 891
Health Services
H.S.-Administration and other 59 69 75 66
Public Health 202 200 206 213
Mental Health 190 196 212 201
Alcohol, Drug & Tobacco 41 44 38 35
Special Revenue Funds 7 25 26 25
County Medical Services Program 26 35 39 31
Public Ways & Facilities
Roads 128 137 124 118
Cultural & Recreational
Regional Parks (1)117 127 79 81
Agricultural Preservation and Open Space District 28 29 27 24
Education
U.C. Cooperative Extension 5 5 5 5
Enterprise Funds
Integrated Waste Enterprise Fund (2)41 41 40 9
Airport Enterprise Fund 15 15 14 15
Transit 7 6 6 5
Fairgrounds 34 34 36 27
Discrete Component Units
Community Development Commission 34 35 36 39
Sonoma Water 243 250 212 215
Library (3)138 138 - -
3,928 4,130 3,949 3,855
Notes:
(1) Regional Parks extra help employees excluded after FY 2013-14.
(2) Integrated Waste Enterprise Fund operation of the Refuse landfill transferred to third party effective April 2016.
(3) Library excluded from the Sonoma County CAFR after FY 2013-14 .
Source:
Sonoma County Auditor Controller Treasurer Tax-Collector
171
STATISTICAL SECTION
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 FTE'S:
General Government
38 45 57 64 72 68 Board of Supervisors / County Administrator
110 107 102 103 98 95 General Services
103 105 107 101 98 101 County Clerk-Assessor-Recorder-PA
90 93 99 94 94 102 Auditor-Controller / Treasurer-Tax Collector
41 44 43 41 42 42 County Counsel
56 59 67 66 68 67 Human Resources
102 99 99 100 98 96 Information Systems
12 12 12 21 14 14 Economic Development
Public Protection
122 126 125 121 122 126 District Attorney
51 51 50 52 49 52 Public Defender
625 624 611 608 595 567 Sheriff
267 262 262 269 251 240 Probation
112 133 151 139 154 154 Permit and Resource Management
21 17 9 12 10 12 Emergency Services
85 87 84 79 72 62 Child Support Services
37 36 36 35 33 36 Agricultural Commissioner
6 6 - - - - Northern Sonoma County Air Pollution Control
Public Assistance
877 834 847 852 875 866 Human Services and IHSS
Health Services
65 82 76 77 66 66 H.S.-Administration and other
210 193 197 200 195 188 Public Health
226 205 190 208 222 204 Mental Health
39 45 14 14 15 14 Alcohol, Drug & Tobacco
20 22 9 10 21 21 Special Revenue Funds
30 17 20 19 20 18 County Medical Services Program
Public Ways & Facilities
113 117 121 124 123 127 Roads
Cultural & Recreational
79 88 88 107 112 117 Regional Parks (1)
25 25 25 27 27 27 Agricultural Preservation and Open Space District
Education
5 4 5 5 4 7 U.C. Cooperative Extension
Enterprise Funds
10 8 9 10 10 11 Integrated Waste Enterprise Fund (2)
16 16 18 18 18 18 Airport Enterprise Fund
5 5 5 6 6 6 Transit
25 27 27 24 13 18 Fairgrounds
Discrete Component Units
43 41 46 44 36 50 Community Development Commission
228 222 224 222 227 235 Sonoma Water
- - - - - - Library (3)
3,894 3,857 3,835 3,872 3,860 3,827
172
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Operating Indicators by Function/Program (Unaudited)
Last Ten Fiscal Years
2012-13 2013-14 2014-15 2015-16 2016-17
Function/Program
Law & Justice
Felonies and Misdemeanors Referred by Law Enforcement Agencies (5)2,321 2,511 2,706 2,229 2,370
Felonies and Misdemeanors Filed (5)123,008 130,135 –149,121 99,714
Public Safety
Fire Prevention Inspections (1)––1,417 1,321 1,393
Dispatch Calls - Sheriff 126,959 125,149 115,351 114,980 111,568
Adult Detention Facility Bookings - Sheriff 17,773 17,703 16,881 15,953 15,987
Juvenile Hall Average Daily Population 80 76 72 60 54
Health & Public Assistance
Birth Certificates Registered - Health Services 5,058 5,166 5,224 5,380 4,997
Emergency Medical Responses - Health Services 45,980 50,634 55,157 50,567 66,680
Total Collections - Child Support Enforcement (4)28,372 28,699 29,038 31,063 34,120
Community Resources & Public Facilities
Permit & Resource Management:
Code Enforcement Cases 877 899 931 1,075 994
Customers Served (Public Counter)–35,193 35,649 33,458 –
Building Permits Issued –16,517 5,450 6,004 5,933
Integrated Waste
Tonnage - Transportation & Public Works (2)230,837 267,251 266,913 292,867 297,282
Diverted Tonnage - Transportation & Public Works 110,000 109,000 119,566 102,302 85,696
Regional Parks
Park Visitors 5,383,600 5,843,143 5,545,143 5,084,152 5,376,723
Veterans/Community Center (3):
Events 3,655 4,788 1,910 2,912 3,793
Attendance 280,885 312,570 199,883 255,018 343,136
Notes:
(1) Fire Prevention Inspections added as an operating indicator FY 2014-15
(2) Tonnage - Transportation & Public Works substantially higher due to October 2017 (FY 2017-18) fire damage waste collection
(3) Veterans/Community Center only tracking Veteran buildings in Cotati, Guerneville, Petaluma, and Sonoma.
All other buildings are operated by 3rd party organizations without County involvement.
(4) In thousands
(5) Updated reporting to show Felonies and Misdemeanors referred and filed in FY 2021-22 due to changes in department reporting. Previously 'Filed Felonies/Ne
– Long dash Indicates historical data not available at time of reporting, changed operating indicator, or statistics no longer available
Source:
Sonoma County Departments
173
STATISTICAL SECTION
2017-18 2018-19 2019-20 2020-21 2021-22
Function/Program
Law & Justice
2,553 ––2,196 8,325 Felonies and Misdemeanors Referred by Law Enforcement Agencies (5)
30,572 ––139,428 12,823 Felonies and Misdemeanors Filed (5)
Public Safety
1,737 ––––Fire Prevention Inspections (1)
114,599 105,357 96,478 124,158 81,778 Dispatch Calls - Sheriff
16,516 18,498 14,546 17,903 9,614 Adult Detention Facility Bookings - Sheriff
41 –38 90 23 Juvenile Hall Average Daily Population
Health & Public Assistance
4,715 4,642 4,559 5,532 5,116 Birth Certificates Registered - Health Services
70,310 75,000 –53,417 57,837 Emergency Medical Responses - Health Services
35,220 34,421 33,987 30,363 30,470 Total Collections - Child Support Enforcement (4)
Community Resources & Public Facilities
Permit & Resource Management:
1,890 1,821 1,687 870 1,509 Code Enforcement Cases
–––33,988 16,736 Customers Served (Public Counter)
8,625 9,094 8,445 16,340 8,067 Building Permits Issued
Integrated Waste
1,216,047 361,092 323,030 240,000 306,863 Tonnage - Transportation & Public Works (2)
85,365 92,507 101,275 107,356 99,733 Diverted Tonnage - Transportation & Public Works
Regional Parks
5,317,133 5,506,506 5,359,420 4,605,999 6,204,388 Park Visitors
Veterans/Community Center (3):
1,583 2,078 1,357 4,145 791 Events
135,182 207,640 123,681 387,500 66,003 Attendance
ew Cases/New VOP' and 'Misdemeanor/Felony Court Appearances'
174
COUNTY OF SONOMA, CALIFORNIA
COUNTY OF SONOMA, CALIFORNIA
Capital Assets Statistics By Function (Unaudited)
Last Ten Fiscal Years
2012-13 2013-14 2014-15 2015-16 2016-17
Function
Sheriff:
Stations 3 3 3 3 3
Sub-Stations (2)5 5 5 5 5
Patrol Units 179 186 161 157 159
Helicopter 1 1 1 1 1
Marine Craft 5 5 5 5 5
Streets And Highways:
Streets (miles)1,382 1,382 1,382 1,379 1,379
Bridges (longer than 20 feet)330 332 332 328 328
Traffic Lights:
Traffic Lights - County Only 37 38 38 38 40
Traffic Lights - Shared With Cities 3 3 3 3 3
Traffic Lights - Shared With State 26 27 30 30 30
Total Traffic Lights 66 68 71 71 73
Parks And Recreation:
Acreage Open to Public (1)57,980 11,372 9,403 11,037 11,036
Sonoma Water:
Water Mains (miles)90 90 90 90 85
Chlorination Facilities 3 3 3 3 3
Pumping Plants/Booster Stations 21 21 21 21 21
Production Wells 9 9 9 9 9
Tank Storage Capacity (thousands of gallons)128,800 128,800 128,800 128,800 129,000
Sanitation:
Sanitary Sewers (miles)252 230 230 230 230
Treatment Capacity (thousands of gallons)13,439 13,439 13,439 13,439 13,439
Treatment Capacity (Avg. Daily Dry Weather
Flow, MGD) (3) –––––
Transit:
Fleet (including buses and vans)81 81 80 83 80
Notes:
(1) 2011-12 Sonoma County Regional Parks assumed the management of Annadel State Park from the State of California.
In 2013-14 the State of California reassumed management back from the County.
(2) 2017-18 Roseland, Larkfield, and Amarosa sub-stations were closed
(3) In 2017-18, changed measurement from "thousands of gallons" to "millions of gallons per day"
– Long dash Indicates historical data not available at time of reporting, changed operating indicator, or statistics no longer available
Source:
Sonoma County Departments
175
STATISTICAL SECTION
2017-18 2018-19 2019-20 2020-21 2021-22
Function
Sheriff:
3 3 3 3 3 Stations
2 2 2 2 2 Sub-Stations (2)
146 148 – – –Patrol Units
1 1 1 1 1 Helicopter
5 5 5 4 4 Marine Craft
Streets And Highways:
1,368 1,368 1,368 1,369 1,369 Streets (miles)
328 328 328 327 325 Bridges (longer than 20 feet)
Traffic Lights:
38 38 38 35 35 Traffic Lights - County Only
3 1 1 5 5 Traffic Lights - Shared With Cities
30 31 32 30 30 Traffic Lights - Shared With State
71 70 71 70 70 Total Traffic Lights
Parks And Recreation:
11,071 12,556 8,976 9,218 10,887 Acreage Open to Public (1)
Sonoma Water:
85 85 85 85 85 Water Mains (miles)
3 3 3 3 3 Chlorination Facilities
21 21 21 21 21 Pumping Plants/Booster Stations
9 9 9 9 9 Production Wells
129,000 129,000 129,000 129,000 129,000 Tank Storage Capacity (thousands of gallons)
Sanitation:
230 230 273 273 271 Sanitary Sewers (miles)
13,439 – – – –Treatment Capacity (millions of gallons per day)
5.36 4.86 4.94 2.80 4.94
Treatment Capacity (Avg. Daily Dry Weather Flow,
MGD) (3)
Transit:
83 83 86 81 78 Fleet (including buses and vans)
176
G LOSSARY
GLOSSARY
180
ACCRUAL BASIS OF ACCOUNTING. Recording of revenues
when earned and expenses at the time incurred
regardless of when the cash is exchanged.
ACTUARIAL ACCRUED LIABILITY. The present value of
projected future benefits earned by employees to date.
ACTUARIAL VALUATION. The determination, as of a point
in time (the actuarial valuation date), of the service cost,
total pension liability or OPEB liability, and related
actuarial present value of projected benefit payments
performed in conformity with Actuarial Standards of
Practice unless otherwise specified by the GASB.
AMORTIZATION. (1) The portion of the cost of a limited-
life or intangible asset charged as an expense (2) The
reduction of debt by regular payments of principal and
interest sufficient to retire the debt by maturity.
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR).
Financial report that encompasses all funds and
component units of the government. Includes three
sections: 1) introductory 2) financial and 3) statistical, plus
information on each individual fund and component unit.
It is the County’s official annual report and complies with
finance-related legal and contractual provisions.
APPROPRIATION. Legal authorization granted by a
legislative body to make expenditures and to incur
obligations for specific purposes usually limited in amount
and the time it may be expended.
ASSESSED VALUATION. A valuation set upon real estate
or other property by a government as a basis for levying
taxes.
ASSIGNED FUND BALANCE. Amounts constrained by the
County’s intent to be used for specific purposes,
established at either the highest level of decision making,
or by a body or an official designated for that purpose.
BASIC FINANCIAL STATEMENTS. Minimum combination
of financial statements and note disclosures required for
fair presentation in conformity with GAAP.
BASIS OF ACCOUNTING. Term used to refer to when
revenues, expenditures, expenses, and transfers, and the
related assets and liabilities, are recognized in the
accounts and reported in the financial statements.
Specifically, it relates to the timing of the measurements
made, regardless of the nature of the measurement, on
either the cash or the accrual method.
BUSINESS-TYPE ACTIVITIES. One of two classes of
activities reported in the government-wide financial
statements. Business-type activities are financed in whole
or in part by fees charged to external parties for goods and
services. These activities are usually reported in enterprise
funds.
CAPITAL ASSETS. Land, improvements to land,
easements, buildings, building improvements, vehicles,
machinery, equipment, works of art, historical treasures,
infrastructure, and all other tangible or intangible assets
that are used in operations and that have initial useful
lives extending beyond a single reporting period.
CAPITAL PROJECTS FUND. Fund created to account for
financial resources to be used for the acquisition or
construction of major capital facilities (other than those
financed by proprietary funds and trust funds).
CASH BASIS OF ACCOUNTING. Basis of accounting under
which transactions are recognized only when cash is
received or disbursed.
CASH EQUIVALENT. Short-term, liquid investments that
are both (1) readily convertible to known amounts of cash
and (2) so near their maturity that they present
insignificant risk of changes in value due to changes in
interest rates.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN
FINANCIAL REPORTING PROGRAM. Program sponsored
by the GFOA to encourage governments to publish ACFRs
consistent with GFOA guidelines.
COMMITTED FUND BALANCE. Amounts that can only be
used for specific purposes determined by formal action of
the County’s highest level of decision-making authority
(the Board of Supervisors) and that remain binding unless
removed in the same manner.
COMPONENT UNIT. Legally separate organization for
which the elected officials of the primary government are
financially accountable.
COST–SHARING MULTIPLE-EMPLOYER DEFINED BENEFIT
PENSION PLAN. A Plan in which a single actuarial
valuation and contribution rate apply to all participating
employees.
COVERED PAYROLL. The payroll on which contributions to
a pension or OPEB plan are based.
CUSTODIAL FUND. Fiduciary funds that are not required
to be reported in Investment Trusts, OPEB, Pension or
Private Purpose Trust funds.
GLOSSARY
181
DEBT SERVICE FUND. Fund established to account for the
accumulation of resources for, and the payment of,
general long-term debt principal and interest.
DEFERRED INFLOWS OF RESOURCES. An acquisition of
net position applicable to a future reporting period.
DEFERRED OUTFLOWS OF RESOURCES. A consumption of
net position applicable to a future reporting period.
DEFINED BENEFIT PLAN. Plan having terms that specify
the amount of benefits to be provided at or after
separation from employment.
DISCOUNT RATE. The single rate of return that, when
applied to all projected benefit payments, results in an
actuarial present value of projected benefit payments.
ENCUMBRANCES. Commitments related to unperformed
contracts for goods or services.
ENTERPRISE FUND. Proprietary fund type used to report
an activity for which a fee is charged to external users for
goods and services.
EXPENDITURES. Decreases in net financial resources.
Expenditures include current operating expenses
requiring the present or future use of net position, debt
service and capital outlays, intergovernmental grants,
entitlements, and shared revenues.
EXTERNAL INVESTMENT POOL. An arrangement that
commingles (pools) the moneys of more than one legally
separate entity and invests, on the participants’ behalf, in
an investment portfolio.
FAIR VALUE. The amount at which a financial instrument
could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation sale.
FIDUCIARY FUNDS. Category of funds used to report
assets held in trustee capacity for others and therefore
cannot be used to support the government’s own
programs.
FINANCIAL RESOURCES. Resources that are or will
become available for spending, including cash and
resources ordinarily expected to be converted to cash
(e.g. receivables, investments).
FUND. A fiscal and accounting entity with a self-balancing
set of accounts in which cash and other financial
resources, all related liabilities and residual equities, or
balances, and changes therein, are recorded and
segregated to carry on specific activities or attain certain
objectives in accordance with special regulations,
restrictions, or limitations.
FUND BALANCE. Net position of a governmental fund
(difference between fund assets, and fund liabilities of
governmental and similar trust funds).
FUND FINANCIAL STATEMENTS. Basic financial
statements presented for funds, in contrast to
government-wide financial statements.
GENERAL FUND. One of five governmental fund types and
typically serves as the chief operating fund of the
government. The general fund is used to account for all
financial resources not accounted for in some other fund.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
(GAAP). The conventions, rules, and procedures that
serve as the norm for the fair presentation of financial
statements.
GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA).
Association of public finance professionals founded in
1906 as the Municipal Finance Officers Association.
Sponsors the Certificate of Achievement for Excellence in
Financial Reporting Program.
GOVERNMENTAL ACCOUNTING STANDARDS BOARD
(GASB). Ultimate authoritative accounting and financial
reporting standard setting body for state and local
governments.
GOVERNMENTAL ACTIVITIES. Activities generally
financed through taxes, intergovernmental revenues, and
other non-exchange revenues. These activities are usually
reported in governmental funds and internal service
funds.
GOVERNMENTAL FUNDS. Funds generally used to
account for tax-supported activities. There are five
different types of government funds: the general fund,
special revenue fund, debt service funds, capital projects
funds, and permanent funds.
GOVERNMENT-WIDE FINANCIAL STATEMENTS. Financial
statements that incorporate all of a government's
governmental and business-type activities, as well as its
non-fiduciary component units. There are two basic
government-wide financial statements: the statement of
net position and the statement of activities.
IMPROVEMENT. An addition made to, or change made in
a capital asset, other than maintenance, to prolong its life
or to increase its efficiency or capacity. The cost of the
addition or change is added to the book value of the asset.
GLOSSARY
182
INFRASTRUCTURE. Long-lived capital assets normally
stationary in nature and preserved for significantly more
years than most capital assets. Examples of infrastructure
assets include roads, bridges, tunnels, drainage systems,
water and sewer systems, dams, and lighting systems.
INTERFUND RECEIVABLE/PAYABLE. Short-term loans
made by one fund to another or the current portion of an
advance to or from another fund.
INTERFUND TRANSFERS. Flow of assets (such as cash or
goods) between funds and blended component units of
the primary government without equivalent flows of
assets in return and without a requirement for payment.
INTERNAL SERVICE FUND. A fund used to account for the
financing of goods or services provided by one
department or agency to other departments or agencies
of a government, or to other governments, on a cost-
reimbursement basis.
MAJOR FUND. A governmental fund or enterprise fund
reported as a separate column in the basic fund financial
statements and subject to a separate opinion in the
Independent Auditors’ Report.
MANAGEMENT'S DISCUSSION AND ANALYSIS. Required
supplementary information that introduces the basic
financial statements and provides an analytical overview
of the government's financial activities.
MEASUREMENT FOCUS. Types of balances and related
changes reported in a given set of financial statements.
NET INVESTMENT IN CAPITAL ASSETS. One of three
components of net position reported in both government-
wide and proprietary fund financial statements. Related
debt, for this purpose, includes outstanding balances of
bonds, notes, or other borrowings attributable to the
acquisition, construction, or improvement of capital
assets.
NET POSITION. The residual of all other elements
presented in a statement of financial position.
NONSPENDABLE FUND BALANCE. Amounts that cannot
be spent because they are either not spendable in form;
or legally contractually required to be maintained intact.
OTHER FINANCING SOURCES. Current financial resources
increase reported separately from revenue to avoid
distorting revenue trends, such as long-term debt
proceeds, proceeds from the sale of general fixed assets,
and operating transfers in.
OTHER FINANCING USES. Current financial resources
decrease reported separately from expenditures to avoid
distorting expenditure trends, such as operating transfers
out, and the amount of refunding bond proceeds
deposited with the escrow agent.
OVERLAPPING DEBT. The proportionate share that
property within a government must bear of the debts of
all local governments located wholly or in part within the
geographic boundaries of the reporting government.
PROPRIETARY FUND. Funds that focus on the
determination of operating income, changes in net
position (or cost recovery), financial position, and cash
flows. There are two different types of proprietary funds:
enterprise funds and internal service funds.
REPORTING ENTITY. The oversight unit and all of its
component units, if any, that are combined in the ACFR.
REQUIRED SUPPLEMENTARY INFORMATION. Consists of
statements, schedules, statistical data or other
information, which, according to the GASB, is necessary to
supplement, although not required to be a part of, the
general-purpose financial statements.
RESTRICTED ASSETS. Assets whose use is subject to
constraints that are either externally imposed by creditors
(such as through debt covenants), grantors, contributors,
or laws or regulations of other governments; or imposed
by law through constitutional provisions or enabling
legislation.
RESTRICTED FUND BALANCE or RESTRICTED NET
POSITION. Amounts with constraints placed on use by
creditors, grantors, contributors or laws or other
governments regulations; or restrictions imposed by law
through constitutional provisions or enabling legislation.
REVENUE BONDS. Bonds whose principal and interest are
payable exclusively from earnings of an enterprise fund. In
addition to a pledge of revenues, such bonds sometimes
contain a mortgage on the enterprise fund’s property.
REVENUES. Increases in the net current assets of a
governmental fund type from other than expenditure
refunds and residual equity transfers.
RIGHT-TO-USE ASSET. A lessee’s right to use an
underlying asset over the lesser or the asset’s useful life
or term of the lease.
SINGLE AUDIT. An audit performed in accordance with the
Single Audit Act of 1996 and Office of Management and
Budget (Code of Federal Regulations Part 200, Uniform
GLOSSARY
183
Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards. The Single Audit Act
sets forth standards for the audit of non-Federal entities
expending Federal awards.
SPECIAL DISTRICT. An independent unit of local
government organized to perform a single government
function or a restricted number of related functions.
SPECIAL REVENUE FUND. A fund used to account for the
proceeds of specific revenue sources (other than
expendable trusts or major capital projects) that are
legally restricted to expenditure for specified purposes.
GAAP only require the use of special revenue funds when
legally mandated.
UNASSIGNED FUND BALANCE. The residual classification
for the County’s General Fund that includes amounts not
contained in the other classifications. In other funds, the
unassigned classification is used only if expenditures
incurred for specific purposes exceed the amounts
restricted, committed, or assigned to those purposes.
UNRESTRICTED NET POSITION. That portion of net
position that is neither restricted nor invested in capital
assets (net of related debt).