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YearEnded
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December 31, 2022
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Prepared by:
County Administrator/Controller
Kevin A. Catlin
Finance Director
Ryan Post
Deputy Finance Director
Jenna LeRoy
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COUNTY OF KALAMAZOO, MICHIGAN
� Table of Contents
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INTRODUCTORY SECTION 1
List of Officials 2
Letter of Transmittal 3
Table of Organization 10
GFOA Certificate of Achievement 11
FINANCIAL SECTION 13
Independent Auditors' Report 15
Management's Discussion and Analysis 19
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position 34
Statement of Activities 35
Fund Financial Statements:
Balance Sheet—Governmental Funds 38
Reconciliation of Fund Balances of Governmental Funds to Net Position
of Governmental Activities 41
Statement of Revenues, Expenditures and Change in Fund Balances—
Governmental Funds 42
Reconciliation of Net Change in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities 45
Statement of Revenues, Expenditures and Change in
Fund Balances—Budget and Actual:
General Fund 46
Law Enforcement Fund 47
General Grants Fund 48
Statement of Net Position—Proprietary Funds 50
Reconciliation of Net Position of Enterprise Funds to
Net Position of Business-type Activities 51
Statement of Revenues, Expenses and Change in
Fund Net Position—Proprietary Funds 52
Reconciliation of Net Change in Fund Net Position of Enterprise Funds to Change in
Net Position of Business-type Activities 53
Statement of Cash Flows—Proprietary Funds 54
Statement of Fiduciary Net Position—Fiduciary Funds 56
Statement of Changes in Fiduciary Net Position—Fiduciary Funds 57
Combining Statement of Net Position—Discretely Presented Component Units 58
Combining Statement of Activities—Discretely Presented Component Units 60
Notes to Financial Statements 63
COUNTY OF KALAMAZOO, MICHIGAN
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Required Supplementary Information 117
Employees' Retirement System:
Schedule of the County's Proportionate Share of the Net Pension Asset 118
Schedule of Pension Contributions 120
Retiree Medical Benefits Plan:
Schedule of the County's Proportionate Share of the Net OPEB Liability 122
Schedule of OPEB Contributions 123
Notes to Required Supplementary Information 124
Combining and Individual Fund Financial Statements and Schedules 127
General Fund:
Detailed Schedule of Revenues, Expenditures and Change in Fund
Balance—Budget and Actual 130
Nonmajor Governmental Funds:
Combining Balance Sheet 138
Combining Statement of Revenues, Expenditures and Change in Fund Balances 142
Schedule of Revenues, Expenditures and Change in Fund
Balances—Budget and Actual—Nonmajor Special Revenue Funds 146
Internal Service Funds:
Combining Statement of Net Position 154
Combining Statement of Revenues, Expenditures and Change in Fund Net
Position 156
Combining Statement of Cash Flows 158
Custodial Funds:
Combining Statement of Fiduciary Net Position 164
Combining Statement of Changes in Fiduciary Net Position 165
Component Unit—Drainage Districts:
Balance Sheet 168
Reconciliation of Fund Balance of Governmental Fund to Net Position
of Component Unit 169
Statement of Revenues, Expenditures and Change in Fund Balance 170
Reconciliation of Net Change in Fund Balance of Governmental Fund to
Change in Net Position of Component Unit 171
COUNTY OF KALAMAZOO, MICHIGAN
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Combining and Individual Fund Financial Statements and Schedules(Concluded)
Component Unit—Lake Level Districts:
Balance Sheet 172
Reconciliation of Fund Balance of Governmental Fund to Net Position
of Component Unit 173
Statement of Revenues, Expenditures and Change in Fund Balance 174
Reconciliation of Net Change in Fund Balance of Governmental Fund to
Change in Net Position of Component Unit 175
Component Unit—Brownfield Redevelopment Authority:
Balance Sheet 176
Reconciliation of Fund Balance of Governmental Fund to Net Position
of Component Unit 177
Statement of Revenues, Expenditures and Change in Fund Balance 178
STATISTICAL SECTION (UNAUDITED) 179
TABLE
1 Net Position by Component 182
2 Change in Net Position 184
3 Fund Balances,Governmental Funds 188
4 Change in Fund Balances, Governmental Funds 190
5 Assessed and Estimated Actual Value of Taxable Property 192
6 Property Tax Rates—Direct and Overlapping Governments 194
7 Principal Property Taxpayers 196
8 Property Taxes, Levies and Collections 197
9 Ratios of Outstanding Debt by Type 198
10 Ratios of Net Bonded Debt Outstanding 199
11 Computation of Direct and Overlapping Debt 200
12 Computation of Legal Debt Margin for General Obligation Bonds 212
13 Demographic Statistics 204
14 Principal Employers 205
15 Full-Time Equivalent Government Employees by Function/Program 206
16 Operating Indicators by Function/Program 208
17 Capital Asset Statistics by Function/Program 210
COUNTY OF KALAMAZOO, MICHIGAN
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SINGLE AUDIT ACT COMPLIANCE 213
Independent Auditors' Report on the Schedule of Expenditures of Federal Awards Required
by the Uniform Guidance and the Supplemental Schedule of Expenditures by Service 215
Schedule of Expenditures of Federal Awards 216
Notes to Schedule of Expenditures of Federal Awards 222
Supplemental Schedule of Expenditures by Service-September 30, 2022 224
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with GovernmentAuditing Standards 227
Independent Auditors' Report on Compliance for Each Major Federal Program and
Internal Control over Compliance Required by the Uniform Guidance 229
Schedule of Findings and Questioned Costs 232
Summary Schedule of Prior Audit Findings 237
Corrective Action Plan 238
■ ■ ■ ■ ■
INTRODUCTORY SECTION
1
COUNTY OF KALAMAZOO, MICHIGAN
LIST OF OFFICIALS
For the Year Ended December 31, 2022
COUNTY BOARD OF COMMISSIONERS
Mike Quinn -Chairperson
Monteze Morales-Vice Chairperson
Fran Bruder Melgar
John Gisler
Tracy Hall
Jeff Heppler
Veronica McKissack
Tami Rey
Dale Shugars
Jen Strebs
Roger Tuinier
CIRCUIT COURT JUDGES
Alexander C. Lipsey
Gary C. Giguere,Jr. -Chief Judge of Circuit and Probate Courts
Paul J. Bridenstine
Stephen D. Gorsalitz
Pamela L. Lightvoet
DISTRICT COURT JUDGES
Christopher T. Haenicke-Chief Judge
Richard A. Santoni
Alisa Parker-LaGrone
Kathleen P. Hemingway
Namita Sharma-serving in Circuit Court
Vincent C.Westra
PROBATE JUDGES
Curtis J. Bell
G.Scott Pierangeli
Tiffany A.Ankley-Chief Judge Pro Tempore, serving in District Court
OTHERS
Prosecutor-Jeffrey Getting
Sheriff- Richard Fuller
County Clerk/Register of Deeds- Meredith Place
Treasurer-Thomas Whitener
Drain Commissioner-Jason Weirsma
Surveyor-Gary Hahn
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June 26, 2023
Kalamazoo County Board of Commissioners
County of Kalamazoo, Michigan
Kalamazoo, Michigan 49007
Members of the County Board of Commissioners:
We are pleased to submit the Annual Comprehensive Financial Report of the County of Kalamazoo,
Michigan (the County),for the year ended December 31, 2022.The basic financial statements included
in this report have been audited by Rehmann Robson LLC, an independent firm of licensed certified
public accountants.This report is prepared for the purpose of disclosing the County's financial condition
to its electorate, elected officials, and other interested parties.
This report consists of management's representations concerning the finances of the County.
Consequently, management assumes full responsibility for the completeness and reliability of all
information presented in this report.To provide a reasonable basis for making those representations,
management of the County has established a comprehensive internal control framework designed to
protect the government's assets from loss,theft, or misuse and to compile sufficient reliable
information for the preparation of the County's financial statements in conformity with generally
accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their
benefits, the County's comprehensive framework of internal controls has been designed to provide
reasonable rather than absolute assurance that the financial statements will be free from material
misstatement.As management, we assert, to the best of our knowledge and belief, this financial report
is complete and reliable in all material respects.
One of the goals of the County's audited financial statements is to provide reasonable assurance that
the financial statements for the year ended December 31, 2022, are free of material misstatement.The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures
reported in the financial statements; assessing the accounting principles used and any significant
estimates made by management; and evaluating the overall financial statement presentation.The
independent auditors concluded, based upon the audit,that there was a reasonable basis for rendering
an unmodified opinion and that the County's financial statements for the year ended December 31,
2022, are fairly presented in conformity with GAAP.The independent auditors' report is presented as
the first component of the financial section of this report.
The independent audit of the financial statements of the County was part of a broader,federally
mandated "Single Audit" designed to meet the special needs of the federal grantor agencies.The
standards governing Single Audit engagements require the independent auditors to report not only on
the fair presentation of the financial statements, but also on the audited government's internal controls
and compliance with legal requirements, with special emphasis on internal controls and legal
requirements involving the administration of federal awards.
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GAAP requires management to provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management's Discussion and Analysis (MD&A).This letter
of transmittal is designed to complement MD&A and should be read in conjunction with it.The County's
MD&A can be found immediately following the independent auditor's report.
Profile of the Government
The County of Kalamazoo, Michigan, the ninth most populous county in the state of Michigan,
encompasses an area of approximately 576 square miles with the 2020 estimated census population of
261,670 and is located in the southwest portion of Michigan's Lower Peninsula. It is approximately 75
miles southwest of Lansing,the state capital.The County is empowered by the state to levy a property
tax on real and personal properties located within the County.
The County is composed of 15 townships, 5 villages, and 4 cities.The County seat is located in the City of
Kalamazoo, which is the largest municipality in the County.The County was organized as a county by the
territorial legislature on July 30, 1830.
The area has a diversified employment base adding to the strength of the local economy. Major
employers in the area are found in the pharmaceutical, banking, health and education sectors.
The County is governed by the County Board of Commissioners (the County Board),which in 2022,
consists of 11 members.The County Board is responsible for establishing policies, adopting the budget,
appointing committee memberships, and hiring the County Administrator/Controller and Corporation
Counsel.The Administrator/Controller is responsible for carrying out the policies set forth by the County
Board and overseeing the day-to-day operations of the County.The County Board is elected on a
partisan basis every two years from districts of approximately the same size.The other five elected
officers of the County are elected on a partisan basis serving four-year terms.
The County provides a full range of municipal services.These services are either mandated by the state
statute or authorized by the County Board.These include legislative,judicial, public works, public safety,
health, welfare, cultural, recreation,transportation, public improvements, and general administrative
services.
The annual budget serves as the foundation for the County's financial planning and control. All
departments of the County are required to submit requests for appropriations to the
Administrator/Controller.These requests form the basis for the development of a proposed budget.The
Administrator/Controller will present to the County Board a recommended budget for consideration and
deliberation. After the review is completed, a public hearing will be held at an annual meeting and the
budget will be adopted.The budget is appropriated at the departmental level.The budget is prepared at
the fund, department, and account level. Department directors may request transfers within fund
appropriations under their administrative control. Transfers of appropriations between departments or
funds require approval of the board.Appropriation increases also require approval by the County Board.
Budget-to-actual comparisons are provided in this report for each individual special revenue fund for
which an appropriated annual budget has been adopted.The General Fund, Law Enforcement Fund, and
General Grants Fund are found on pages 46-48 as part of the basic financial statements for the
governmental funds. For special revenue funds, other than the General Fund, Law Enforcement Fund,
and General Grants Fund, this comparison is found starting on page 146.
Financial Condition Factors
Short Term Factors Affecting Budget
Over time,the County has managed to collectively remain sustainable.The area has a diversified
employment base adding to the strength of the local economy. Major employers in the area are found in
the pharmaceutical, banking, health, and education sectors.
Forecasting and budgetary stewardship have allowed the County to proactively make budgetary
decisions to minimize reactionary impacts to core services.A large percentage of County revenue comes
from the state and local property taxes. With these realities in mind, budget recommendations focus on
continuing the prudent, long-term fiscal policies of the Board of Commissioners, supporting mandated
and essential services, and protecting the public safety and welfare.
The COVID-19 pandemic continued to create some uncertainty in 2022. While many operations were
restored to their pre-pandemic levels as the year progressed,the 8th District Court and 9th Circuit Court
efforts to address case backlogs were slowed by ever changing COVID-19 mitigation requirements. The
Office of the Sheriff has recognized reduced inmate populations; however, the number of violent
offenses and the average length of stay has significantly increased. Across the County, departments are
experiencing staffing retention and recruitment concerns.
As we participated in mitigation efforts of the COVID-19 pandemic, the important work of County staff
over the last three years has positioned the County to continue to improve business continuity functions
and service enhancements.
Long Term Financial Planning
The County completes a five-year analysis during each budget cycle and updates them frequently to
ensure that budgetary impacts are considered. Based on these projections and economic indicators,
budget policies have been adopted to implement a baseline spending reduction.The Board of
Commissioners is committed to ensuring the long-term fiscal stability of the County.The County has
operated cautiously over the past several years making sound financial decisions.The County monitors
budgetary spending throughout the year. Quarterly projections are prepared, and spending goals are
reviewed based on analysis. Future forecasting projects expenditures to outpace revenues.The County
will continue to align expenditure to these indicators. Cautious budgeting decisions and ongoing
monitoring of revenues and expenditures must continue, or the County will find it necessary to reduce
services in order to balance the budget.
Capital Improvement
The Board of Commissioners reviews annual funding requests for routine capital improvement items.
For major capital items, a Facilities Master plan has been established.The primary mission of this plan is
to account for and develop a county-wide strategy for facilities.This completed project included a
property manual update with physical descriptions of all buildings, a facilities audit with planned
maintenance, and projected long-term capital improvement requirements.The plan is a working
document that guides long term asset construction and renovation projects.
Relevant Financial Policies
The Budget Stabilization Policy was adopted in 1980. Currently,this fund retains$2.5 million.This
reserve was established to ensure an amount was encumbered for an unforeseen situation, which could
create an inability to balance revenues and expenditures in future budget adoptions. It is the intent of
the policy that any amount utilized for these situations requires a plan of action for reimbursement to
the fund.
To solidify the Board of Commissioner's commitment to financial responsibility, a Fund Balance Policy
was adopted. Recognizing Governmental Accounting Standards Board Statement No. 54,the target of
unassigned General Fund balance to General Operating Revenues will be 25%. It is the intent that should
the General Fund Balance fluctuate above or below this target by 5%or more, Administration will make
recommendations to the County Board to adhere to the policy objective.
The 2022 unrestricted, uncommitted and unassigned fund balance in comparison to revenues for the
County's operating funds (General Fund, Law Enforcement Fund, and certain special revenue funds that
receive significant appropriation from the General Fund or have expenditures that are paid through the
General Fund) was 40.48%.
Major Initiatives
Budgetary pressures have continued to be placed on the County. Long-term pressures resulted from
revenue streams which do not grow at the pace of expenditure needs and long-term facility needs.To
remain committed to providing essential services, a strategic initiative has been outlined and utilized.
The County has created a strategic plan that is reviewed to emphasize framework in the following areas:
deliver consistent high-quality programs and services, strengthen engagement in our community and
build a relationship-focused culture. In 2022,the following strategic initiatives were prioritized.
■ Diversity, Equity,and Inclusion (DEI)
The Board of Commissioners determined DEI initiatives serve as critical components of any
modern workplace, including county governments.The Board hired its inaugural DEI Director in
February 2022. DEI directors are professionals who are tasked with promoting diversity, equity,
and inclusion within institutions.The Board also established the DEI Community Advisory
Committee, which provides advice and recommendations to the Board to promoting equity and
fairness in their policies and programs.They review policies and procedures to identify any
potential biases or barriers that may exist, and develop strategies to address them. By
promoting equity,these committed DEI professionals can help ensure that all county residents
have access to the same opportunities and services, regardless of their race, gender, or other
characteristics.The Board has also endeavored to foster an inclusive workplace environment
where everyone feels welcome and valued.The DEI Director has been tasked with developing
training programs and resources to promote cultural competence and address implicit bias and
encourage open dialogue and feedback to help ensure that all employees feel heard and
respected.The overall goal is to foster inclusion to improve collaboration and innovation within
county government, leading to better services for residents.
■ American Rescue Plan State and Local Fiscal Recovery Funds
In May 2021, Kalamazoo County was granted $51,485,963 in American Rescue Plan (ARP)State
and Local Fiscal Recovery Funds to use through 2024. These funds are available from the federal
government to communities across the country to assist in recovery efforts from the impacts of
the COVID-19 pandemic.
Kalamazoo County recognized the significant impact that the COVID-19 pandemic has had within
our community and the historic opportunity State, and Local Fiscal Recovery Funds provide to
address that impact. When Treasury released the Interim Final Rule in May 2021, Kalamazoo
County Government staff began participating in a variety of webinars hosted by the White
House, National Association of Counties, State of Michigan, and the Government Finance
Officers Association to gain a thorough knowledge of the eligible uses of these funds and the
corresponding reporting requirements. Kalamazoo County Government received our first
deposit of$25,742,981.50 at the end of June 2021, and presentations to the Board of
Commissioners,which outlined important planning information, began in July 2021.
After securing the funds, Finance Department staff worked to develop a draft grant application
process that will allow the community, County departments, and other municipalities to apply
for these funds. The preliminary results of that work were presented to the Board of
Commissioners in August for their feedback. Additionally, a community feedback session
regarding proposed use of the funds was held on August 24, 2021. The County also began to
seek proposals and ultimately selected a consulting firm in December of 2021 to ensure that
allocations meet the federal government's specifications for American Rescue Plan spending.
The grant application process opened in 2022 and the Board of Commissioners finalized funding
decisions during the summer/fall of 2022.The grant agreement was finalized and routed to all
successful grantees in November 2022.
■ Justice Center
In April of 2017, Kalamazoo County Government entered into an agreement for a real estate
transfer which initiated the beginning of the development of a future downtown County
building. A project Owner's Representative and Architect were selected during 2017 and
programming to discuss the space needs of staff located within the Michigan Avenue
Courthouse, Crosstown Complex and Administration Building ensued. Due to cost constraints, it
was decided that this facility would house the staff located within the Michigan Avenue
Courthouse and Crosstown Complex. Design on the facility began in 2019 and continued into
the spring of 2020 with construction documents completed in the fall of 2020.The project was
bid out in December of 2020 and construction began in the spring of 2021. Construction has
progressed through 2022 and the project is expected to be completed in the fall of 2023.
■ Segal Market Study
A compensation and classification market study was commissioned to make our large and
complex workforce more competitive, financially speaking.The Board of Commissioners
endeavored to ensure county government could attract and retain top talent.They also wanted
to mitigate potential legal issues related to pay disparities and discrimination.The Segal market
study was commissioned in the fall of 2021 and the implementation plan was approved on
November 1, 2022, with an effective date of January 1, 2023.
The impetus of improving employee morale and engagement was at the forefront of the Board.
When employees feel that their pay is fair and equitable,they are more likely to be engaged and
motivated at work.Additionally,the study helped identify areas where employees may be
undervalued or underutilized, and provided opportunities to increase their pay and
responsibilities. By addressing these issues, Kalamazoo County Government created a more
satisfied and engaged workforce, with the goal increasing productivity and improved overall
performance.
■ Housing Millage
The County Board of Commissioners recognized that the lack of housing is a serious challenge in
our community and that more resources were required to ensure that County residents have
access to safe, affordable, and supportive housing. Through a series of community-wide
meetings regarding the housing needs of our community, a decision was made to seek voter
approval for the expansion of the existing housing millage during the November 2020 election.
Voters were asked to increase the millage to 0.75 mills for eight years (2021-2028)to support
rental subsidies, permanent housing, and related supportive services. Voters approved the
millage increase which was effective with the December 2021 tax bills. Work occurred over
2022 to distribute funds to various agencies/developers making an impact on affordable and
workforce housing.The funds also help to address the following areas; supportive services,
multi-family housing, single-family housing, single-family rehab, and opportunistic creative
projects.
■ Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Achievement for Excellence in Financial Reporting to the County of Kalamazoo,
Michigan,for its annual comprehensive financial report for the fiscal year ended December 31,
2021.This was the twenty fourth consecutive year that the government has achieved this
prestigious award. To be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report.This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current report
continues to meet the Certificate of Achievement Program requirements and we are submitting
it to the GFOA to determine its eligibility for a certificate.
The preparation of this report on a timely basis would not have been accomplished without the
cooperation of all involved in the financial accounting process. We want to thank members of
the Kalamazoo County Board of Commissioners for your interest and support in planning and
conducting the financial operations of the County in a responsible and progressive manner.
Respectfully submitted,
Kevin A. Catlin
County Administrator/Controller
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Ryan J. Post
Finance Director
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FINANCIAL SECTION
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INDEPENDENT AUDITORS' REPORT
June 26, 2023
Honorable Members of the
Board of Commissioners
of the County of Kalamazoo, Michigan
Kalamazoo, Michigan
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 Kalamazoo, Michigan (the "County"), as of and for the year ended
December 31, 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 reports of the 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
December 31, 2022, and the respective changes in financial position and, where applicable, cash flows
thereof, and the respective budgetary comparisons for the general fund and each major special
revenue fund 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 following entities, which represent the indicated
percentages of total aggregate discretely presented component units:
Percent of
Assets and
Deferred Percent of Percent of
Outflows Revenues Net Position
Kalamazoo County Transportation Authority 0.2% 5.1% 0.0%
Central County Transportation Authority 16.0% 38.2% 14.8%
Kalamazoo County Road Commission 75.9% 53.5% 76.5%
Kalamazoo County Public Housing Commission 0.6% 0.3% 0.8%
HLB TMEGL06ALADVISORVeci.��r
AND ACCOUNTING NETWORK
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Those statements were audited by other auditors whose reports thereon were furnished to us, and our
opinions, insofar as they relate to the amounts included for the above entities, are based solely on the
reports 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. The financial statements of the
Kalamazoo County Transportation Authority and the Kalamazoo County Road Commission were not
audited in accordance with Government Auditing Standards. Our responsibilities under those
standards are further described in the Independent Auditors' 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.
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.
Independent Auditors'Responsibilities for the Audit of the Financial5tatements
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 auditors' 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.
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In performing an audit in accordance with GAAS and GovernmentAuditing 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 and the schedules for the pension and other postemployment
benefit plans, 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 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 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.
17
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 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 were derived from and relate 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 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 comprehensive financial
report. The other information comprises the introductory and statistical sections but does not include
the basic financial statements and our auditors' 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 basic 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 GovernmentAuditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 26,
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.
�r�. ��C
1g
MANAGEMENT'S DISCUSSION AND ANALYSIS
19
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
As management of the County of Kalamazoo, Michigan (the "County' or the "government"), we offer readers of the County's
financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended
December 31, 2022. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal.
Financial Highlights
• Total net position $ 274,383,434
• Change in total net position 32,101,132
• Fund balances,governmental funds 119,179,767
• Change in fund balances,governmental funds (29,809,289)
• Unassigned fund balance,general fund 39,695,700
• Change in fund balance,general fund (2,882,941)
• General obligation bonds 142,535,000
• Change in general obligation bonds 47,510,000
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 comprise three components: 1) government-wide financial statements, 2) fund financial
statements,and 3) notes to the financial statements.This report also contains other supplementary information in addition to
the basic financial statements themselves.
Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a
broad overview of the County's finances,in a manner similar to a private-sector business.
The statement of net position presents information on all of the County's assets, deferred outflows of resources, liabilities,
and deferred inflows of resources, with the difference being net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the County is improving or deteriorating.
The statement of activities presents information showing how the County's net position changed during the most recent fiscal
year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of
the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods(e.g.,uncollected taxes and earned but unused vacation leave).
Both of the 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 their costs through user fees and charges (business-type activities). The governmental activities of the County
include general government, public safety, public works, health and welfare, cultural and recreation,judicial and community
and economic development. The business-type activities of the County include the Kalamazoo/Battle Creek International
Airport, Delinquent Tax Revolving Funds,the Local Government Public Works Financing Fund and the Tax Reversion Fund.
The government-wide financial statements include not only the County itself(known as the primary government),but also the
following legally separate entities: Transportation Authority, Central County Transportation Authority, Road Commission,
Drainage Districts, Land Bank Authority, Lake Level Districts, Public Housing Commission, and Brownfield Redevelopment
Authority. Financial information for these component units is reported separately from the financial information presented
for the primary government itself.
20
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have
been 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 of 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 and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
governmenYs near-term financing requirements.
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. By doing so, readers may better understand the long-term impact of the
government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The County maintains various individual governmental funds. Information is presented separately in the governmental funds
balance sheet and in the governmental funds statement of revenues, expenditures, and change in fund balances for the
General Fund, Law Enforcement Fund, General Grants Fund, Capital Projects Fund, and the Justice Facility Capital Projects
Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these nonmajor 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 and special revenue funds. Budgetary comparison
statements or schedules have been provided for the General and special revenue funds to demonstrate compliance with this
budget.
Proprietary Funds. The County maintains two different types of proprietary funds. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial statements.The County uses enterprise
funds to account for the Airport Fund,the Delinquent Tax Revolving Fund,the Local Government Public Works Financing Fund
and the Tax Reversion Fund. Internal service funds are used to accumulate and allocate costs internally among the County's
various functions. The County uses internal service funds to account for its employee benefits program, technology systems,
Alcott facility lease program (closed in 2022), central stores activity, local site remediation and insurance. Because these
services predominately benefit governmental rather than business-type activities, they have been included within
governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,only in more detail.The
proprietary fund financial statements provide separate information for the Airport Fund,the Delinquent Tax Revolving Fund,
and the Local Government Public Works Financing Fund, each considered to be a major fund of the County,as well as the Tax
Reversion Fund,the only nonmajor enterprise fund.The County's internal service funds are presented in the proprietary fund
financial statements in the Governmental Activities-Internal Service Funds column. Also, individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report.
21
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not
available to support the County's own programs.The accounting used for fiduciary funds is much like that used for proprietary
funds.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the
data provided in the government-wide and fund financial statements.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information concerning the County's progress in funding its obligation to provide pension and other
postemployment benefits to its employees.
The combining and individual fund financial statements and schedules referred to earlier in connection with nonmajor
governmental funds and internal service funds are presented immediately following the required supplementary information.
Government-wide Financial Analysis
As previously stated,net position may serve over time as a useful indicator of a government's financial position. In the case of
the County, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by$274,383,434
at the close of the most recent fiscal year.
Net Position
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Current and
other assets $ 240,157,282 $ 284,584,695 $ 86,877,755 $ 32,036,862 $ 327,035,037 $ 316,621,557
Capital assets,net 156,409,027 107,483,968 50,457,926 49,170,198 206,866,953 156,654,166
Total assets 396,566,309 392,068,663 137,335,681 81,207,060 533,901,990 473,275,723
Total deferred outflows
of resources 23,652,376 4,946,337 364,816 321,409 24,017,192 5,267,746
Long-term liabilities 107,802,720 122,346,315 57,293,342 7,085,891 165,096,062 129,432,206
Other liabilities 64,364,529 46,429,284 3,647,359 1,747,690 68,011,888 48,176,974
Totalliabilities 172,167,249 168,775,599 60,940,701 8,833,581 233,107,950 177,609,180
Total deferred inflows
of resources 49,337,282 58,217,970 1,090,516 434,017 50,427,798 58,651,987
Net position
Net investment in
capital assets 88,290,754 74,296,286 50,457,926 47,084,190 138,748,680 121,380,476
Restricted 31,186,072 40,368,492 176,733 496,020 31,362,805 40,864,512
Unrestricted 79,237,328 55,356,653 25,034,621 24,680,661 104,271,949 80,037,314
Total net position $ 198,714,154 $ 170,021,431 $ 75,669,280 $ 72,260,871 $ 274,383,434 $ 242,282,302
Current and other assets increased, along with the other liabilities for unearned revenues, due in part to the receipt of
Coronavirus State and Local Fiscal Recovery Funds that have not yet been spent.
22
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
A substantial portion of the County's net position,$138,748,680(50.6%), reflects its investment in capital assets(e.g., land,in
progress assets,intangible easements,land improvements,buildings and improvements,furniture, machinery and equipment,
vehicles and books), less any related outstanding debt used to acquire those assets. The County uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending. Although the County's
investment in its capital assets is reported net of related debt,it should be noted that the resources needed to repay this debt
must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the County's net position of$31,362,805 (11.4%) represents resources that are subject to external
restrictions on how they may be used. The County may use the remaining balance of unrestricted net position of
$104,271,949(38.0%)to meet its ongoing obligations to citizens and creditors.
At the end of the current fiscal year,the County is able to report positive balances in all three categories of net position, both
for the government as a whole,and for its separate governmental and business-type activities.
23
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Change in Net Position
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Program revenues:
Charges for services $ 13,405,796 $ 14,539,259 $ 6,065,398 $ 6,157,874 $ 19,471,194 $ 20,697,133
Operating grants
and contributions 37,285,450 34,519,073 6,067,232 820,789 43,352,682 35,339,862
Capital grants
and contributions - - 331,021 911,306 331,021 911,306
Generalrevenues:
Property taxes 77,347,010 68,241,673 - - 77,347,010 68,241,673
SLFRF 10,270,054 - - - 10,270,054 -
Opioid settlement 5,566,729 - - - 5,566,729 -
State revenue
sharing 5,633,015 5,457,862 - - 5,633,015 5,457,862
Other taxes 3,495,596 2,741,031 - - 3,495,596 2,741,031
Other 1,229,321 994,694 (30,011) - 1,199,310 994,694
Total revenues 154,232,971 126,493,592 12,433,640 7,889,969 166,666,611 134,383,561
Expenses:
General
government 21,973,983 8,899,301 - - 21,973,983 8,899,301
Public safety 33,995,442 33,872,354 - - 33,995,442 33,872,354
Public works 505,596 552,800 - - 505,596 552,800
Health and welfare 31,259,614 30,909,234 - - 31,259,614 30,909,234
Cultural and
recreation 4,367,262 4,390,610 - - 4,367,262 4,390,610
Judicial 31,392,758 25,476,207 - - 31,392,758 25,476,207
Community and economic -
development 1,250,111 1,473,348 - - 1,250,111 1,473,348
Interest and fiscal
charges 484,419 1,578,623 - - 484,419 1,578,623
Airport operations - - 7,144,431 6,468,754 7,144,431 6,468,754
Local government public
works financing - - 1,926,288 857,769 1,926,288 857,769
Tax reversion - - 265,575 286,217 265,575 286,217
Total expenses 125,229,185 107,152,477 9,336,294 7,612,740 134,565,479 114,765,217
Change in net position,
before transfers 29,003,786 19,341,115 3,097,346 277,229 32,101,132 19,618,344
Transfers (311,063) 780,606 311,063 (780,606) - -
Change in net
position 28,692,723 20,121,721 3,408,409 (503,377) 32,101,132 19,618,344
Net position:
Beginning of year 170,021,431 149,899,710 72,260,871 72,764,248 242,282,302 222,663,958
End of year $ 198,714,154 $ 170,021,431 $ 75,669,280 $ 72,260,871 $ 274,383,434 $ 242,282,302
24
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Governmental Activities. Governmental activities increased the County's net position by$28,692,723,as compared to a prior
year increase of$20,121,721. Key elements of this increase consisted of the following:
• Operating grants increased by $2,766,377 which is largely due to and increase of approximately $2,750,000 in indigent
defense grant funding.
• Property taxes increased by $9,105,337, which is largely due to an overall increase of 5.52% to the taxable value in
Kalamazoo County.
• The County began to spend the Coronavirus State and Local Fiscal Recovery Funds during the year and as such as
recognized revenue of$10,270,054.
• The County expects to receive$5,566,729 as a result of an opioid settlement and recorded a receivable and the revenue
for the anticipated amount to be collected.
• Overall expenses increased by$18,076,708, which $10,270,054 is due to American Rescue Plan spending which include
the essential worker pay of $8,844,460 and contractual services of $1,213,247. Contract timing related to Kalamazoo
defender contributed$2,460,839. Additionally,the County saw an increase county wide healthcare costs of$1,256,553.
Expenses and Program Revenues-Governmental Activities
$40,000,000 $33,995,442
$35,000,000 $31,259,614 $31,392,758
$30,000,000 $Z1,973,983
$25,000,000
$20,000,000 $15,699,834
$14,462,204
$15,000,000
$8,585,899 $7,606,422
$10,000,000
$4,367,262 $2,240,126 $3,095,681
$s,00a,000 � , ■ =zni,zo6 _ -
S-
General Public safety Health and welfare Cultural and Judicial Other
government recreation
■Expenses ■Program Revenues
25
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Revenues by Source-Governmental Activities
State revenue Other
sharing � 1%
4%
Other taxes 2% Charges for
services
10%
Operating grants
and contributions
27%
Property taxes
56%
Business-type Activities. Business-type activities increased the County's net position by $3,408,409, as compared to a prior
year decrease of$503,377. Key elements of this increase consisted of the following:
• Operating grants increased by $5,246,443, which is largely due to Coronavirus Aid, Relief and Economic Security Act
(CARES)of$3,169,076 and the Coronavirus State and Local Fiscal Recovery Funds of$2,150,062.
• Overall expenses increased by$1,723,554 from prior year. In 2022, a bond was issued for the Road Commission's new
facility in the Local Government Public Works Financing fund and as a result, increased expenses by $714,171. The
Airport saw a increase in their indirect costs of $323,571 and had several capital improvement projects to the airfield
building and road maintenance contributing$541,731 to the increase.
Expenses and Program Revenues-Business-type Activities
Siz,000,000
$9,910,653
$10,000,000
$7,144,431
$8,000,000
$6,000,000
$4,000,000
$2,019,324 $1,926,288
$2,000,000 . .
$- Slls,a6z Sz6s,s�s S41s,ziz
5- � �
Airport operations Delinquent tax collection Local Government Public Works Tax Reversion
Financing
■Expenses ■Program Revenues
26
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Revenues by Source-Business-type Activities
Capital grants and
contributions
20�
Charges for services
49%
Operating grants and
contributions
49%
Financial Analysis of the County's Funds
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance 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, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at
the end of the fiscal year.
Fund balance components have been classified as nonspendable, restricted, committed, assigned and/or unassigned based
primarily on the extent to which the County is bound to observe constraints imposed on the use of the resources of the fund.
Nonspendable fund balances make up $443,166 (0.4%) of the fund balance. Governmental funds report nonspendable fund
balance for amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually
required to be maintained intact.The County's inventories,prepaids and advances to component units are nonspendable.
Restricted fund balances make up $42,215,800 (35.4%) of the fund balance. Spending of these resources is constrained by
externally imposed (statutory, bond covenant, contracts, or grantors) limitations on their use. The amounts are for budget
stabilization,debt service,capital,and special revenue funds.
Committed fund balances make up$647,656 (0.5%) of the fund balance. Spending of these resources is for specific purposes
pursuant to constraints imposed by formal action of the Board of Commissioners (the government's highest level of decision-
making authority). A formal resolution of the Board of Commissioners is required to establish, modify, or rescind a fund
balance commitment.
27
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Assigned fund balance makes up $36,177,445 (30.4%) of the fund balance. These funds are primarily assigned for Capital
Projects Fund capital expenditures.
Unassigned fund balance represents the General Fund remaining fund balance. The General Fund unassigned fund balance is
available to support general operations of the County. The unassigned amount of$39,695,700 represents 33.3%of the total
governmental fund balances.
The General Fund is the chief operating fund of the County. At the end of the current fiscal year, unassigned fund balance of
the General Fund was $39,965,700, while total fund balance amounted to $42,238,908. As a measure of the General Fund's
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.
Unassigned fund balance represents 49.8% of total General Fund expenditures and transfers out, while total fund balance
represents 54.3%of that same amount.
The fund balance of the County's General Fund decreased by$2,882,941 during the current fiscal year. The key factor in this
change is planned use of fund balance for the purchase of the Alcott property in amount of$9,911,670 and parking lot land of
$1,150,000.This was offset by tax revenue being$2.9 million above projections and decreased required General Fund support
by various funds including the Child Care Fund in the amount of$1,049,332,the Health Fund in the amount of$861,225 and
the Capital Projects Fund in the amount of$280,529. The remaining difference was due to overall conservative spending by
departments in the General Fund.
The Law Enforcement Fund accounts for specific revenue derived from a special voter-approved millage, state and federal
grants, and charges for services, and are to be expended as dictated by legal, regulatory, or administrative requirements. At
the end of the current fiscal year, total fund balance of the Law Enforcement Fund was $994,108. The fund balance of the
County's Law Enforcement Fund decreased by$1,837,796 during the current fiscal year. The key contributor to the decrease
is higher salaries and overtime for the Sheriff's department employees as well as retroactive pay once their union contract was
finalized.Approved capital spending in the law enforcement fund also increased.
The General Grants Fund accounts for American Rescue Plan Act and other grant programs. At the end of the current fiscal
year,total fund balance of the General Grant Fund was$748,090.
The Capital Projects Fund was established to account for renovation/construction projects performed on the County facilities
and for the purchase of capital improvement equipment. These projects are funded primarily by the General Fund. The
County continues to transfer a portion of the State Shared Revenue payments into the Capital Projects Fund to pay for capital
facility needs. The fund balance increased by$2,051,203, bringing the total fund balance to $35,492,010. There are several
key factors that account for this change, including 2022 construction in progress purchases being placed on hold until 2023
and various other large projects that are in progress, including the new ERP system, disaster recovery and District Court
Imagesoft system.
The Justice Facility Capital Projects Fund was established to account for construction of the new justice facility. The fund
balance decreased by$36,790,725,due to spending of bond proceeds received in the prior year on construction projects.
Proprietary Funds. The County's proprietary funds provide the same type of information found in the government-wide
financial statements,but in more detail.
28
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Unrestricted net position of the Airport Fund at the end of the year amounted to $6,160,354. The net position for the
Delinquent Tax Revolving Fund amounted to $17,433,356 and the net position for the Local Government Public Works
Financing Fund totaled$237.The Airport Fund had a total increase in net position of$2,730,912,the Delinquent Tax Revolving
Fund experienced an increase in net position of$489,313 (primarily as a result of tax collections in excess of transfers out to
other funds), and the Local Government Public Works Financing Fund saw a change of$237 in net position from prior year.
Other factors concerning the finances of these three funds have already been addressed in the discussion of the County's
business-type activities.
General Fund Budgetary Highlights
The original General Fund budget projected no change in fund balance. The final amended budget planned for a $9,749,200
decrease in fund balance. The actual decrease in fund balance was$2,882,941.Significant changes between original and final
amended budget are as follows:
• The budget for general government expenditures was increased by $415,400. The increase is related to various
expenditures including information technology salaries,legal services,consultant fees and classification consultant.
• The budget for other expenditures increased by $542,700, related to spending of the restricted reserve. The County
restricted reserves as it continued to bargain with the Sheriff's Deputies, Sheriff's Supervisor's and Sheriff's Sergeants
Associations for retro pay payments.
• The budget for transfers out was increased by $10,182,900, primarily related to transfers into the County's capital
projects fund to purchase the Alcott property and land for a parking lot construction to support the new Justice Facility
Center.
Revenues
Taxes-$1,002,042 over budget. This revenue overage is due to a 5.52%o actual growth rate in taxable value. A 2.5% rate was
used for budgeting purposes.
Intergovernmental -$2,497,714 over budget.This revenue overage is primarily due to Marijuana tax dollars in the amount of
$1,387,236 and Local Community Stabilization Share tax dollars totaling$1,191,260 over projections.
Investment earnings-$1,326,838 under budget.This revenue shortage is due to investment selections and market conditions
that provided earnings lower than projected.
Expenditures
General government - $649,889 under budget. This activity was under budget primarily due to lower than projected
restitution costs, lower utilities costs, lower than projected information technology costs, and overall conservative spending
by department heads and elected officials.
Public safety- $429,420 under budget. This activity was under budget primarily due to overall conservative spending by the
Sheriff's Department and Animal Services.
Judicial -$796,213 under budget.This activity was under budget primarily due to overall conservative spending by the Circuit
Court,District Court and Prosecuting Attorney's Office.
Other-$1,344,217 under budget.This activity was under budget primarily due to unused restricted reserve.
29
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Transfers out - $2,277,842 under budget. This is primarily due to a lower need for General Fund support by various funds
including the Child Care Fund in the amount of $1,049,332, the Health Fund in the amount of $861,225 and the Capital
Projects Fund in the amount of$280,529.
Capital Assets and Debt Administration
Capital Assets. The County's investment in capital assets for its governmental and business-type activities as of December 31,
2022, amounts to $206,866,953 (net of accumulated depreciation/amortization). This investment in capital assets includes
land, in process assets, intangible easements, land improvements, building and improvements, furniture, machinery and
equipment,vehicles, books and leased buildings and improvements. The total increase in the County's investment in capital
assets for the current fiscal year was $50,212,787 (an increase of 45.5%for governmental activities and an increase of 2.6%
for business-type activities).
Significant additions to capital assets are as follows:
• Downtown Justice Facility construction in progress.
• The County acquired the building and land of property 315 East Alcott Street.
Capital Assets(Net of Depreciation)
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Land $ 6,221,147 $ 5,050,097 $ 5,323,562 $ 5,323,562 $ 11,544,709 $ 10,373,659
Construction in
progress 60,443,103 22,587,753 9,915,830 10,057,934 70,358,933 32,645,687
Intangible
easements 147,493 147,493 - - 147,493 147,493
Land improvements 5,634,787 6,300,641 11,074,570 9,649,882 16,709,357 15,950,523
Buildings and
improvements 80,316,899 69,075,073 23,079,036 23,873,431 103,395,935 92,948,504
Furniture,machinery
and equipment 2,240,768 2,814,063 318,583 161,278 2,559,351 2,975,341
Vehicles 1,187,975 1,074,608 746,345 104,111 1,934,320 1,178,719
Law library books 529 1,588 - - 529 1,588
Leased building and
improvements 216,326 432,652 - - 216,326 432,652
Total $ 156,409,027 $ 107,483,968 $ 50,457,926 $ 49,170,198 $ 206,866,953 $ 156,654,166
Additional information on the County's capital assets can be found in Note 7 of this report.
30
COUNTY OF KALAMAZOO, MICHIGAN
� Management's Discussion and Analysis
Long-term Debt. At the end of the current fiscal year, the County had total long-term debt outstanding of$153,761,672, an
increase of$48,576,757 from the prior year,mainly due to new debt issuance for the Road Commission capital project.
Governmental Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
General obligation
bonds $ 87,165,000 $ 88,455,000 $ 55,370,000 $ 6,570,000 $ 142,535,000 $ 95,025,000
Bond premium/
discount 4,576,918 4,873,945 1,738,029 280,069 6,314,947 5,154,014
Compensated
absences 4,777,657 4,902,727 134,068 103,174 4,911,725 5,005,901
Total $ 96,519,575 $ 98,231,672 $ 57,242,097 $ 6,953,243 $ 153,761,672 $ 105,184,915
The County maintains an "AA+" rating from Standard & Poor's and "Aa3" rating from Moody's for its general obligation debt.
State statutes limit the amount of general obligation debt a governmental entity may issue to 10%of its total state equalized
valuation.
The current debt limitation for the County is $1,255,540,958, which is significantly higher than the County's outstanding
general obligation debt. Additional information on the County's long-term obligations is found in Note 8.
Economic Factors and Next Year's Budget and Rates
• The unemployment rate for the County as of March 2023 is 4.1%which is a 0.2%increase from March 2022.This is lower
than the state average of 3.8%.
• Property values increased by 56.80%in 2023.
• While Inflationary trends in the region compare favorable to national indices, rates of inflation continue to be high and
will be monitored closely.
These factors were considered in preparing and monitoring the County's budget for the 2023 fiscal year.
At calendar year end, the unassigned fund balance in the General Fund was $39,695,700. This has allowed the County to
adopt a balanced budget and eliminates the need to raise taxes or charges above the current recommended levels during the
2023 fiscal year.
Requests for Information
This financial report is designed to provide a general overview of the County's finances for all those with an interest in the
County's finances. Questions concerning any of the information provided in this report, or requests for additional financial
information,may be addressed to the Finance Director, Kalamazoo County Government,201 West Kalamazoo Ave, Room 402,
Kalamazoo, MI 49007.
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32
BASIC FINANCIAL STATEMENTS
33
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Net Position
December 31,2022
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Assets
Cash and cash equivalents $ 25,800,283 $ 15,878,419 $ 41,678,702 $ 32,484,153
Restricted cash 4,141,727 448 4,142,175 38,591,150
Investments 111,194,590 328,437 111,523,027 989,409
Restricted investments 42,878,841 - 42,878,841 -
Receivables 47,420,314 70,309,063 117,729,377 16,294,830
Restricted receivables - 46,628 46,628 -
Internalbalances (112,387) 112,387 - -
Advances to component unit 306,481 - 306,481 -
Other assets 1,250,551 72,716 1,323,267 3,484,255
Net pension asset 7,276,882 129,657 7,406,539 11,294,619
Net OPEB asset - - - 323,561
Capital assets not being depreciated 66,811,743 15,239,392 82,051,135 53,685,942
Capital assets being depreciated/amortized,net 89,597,284 35,218,534 124,815,818 172,967,207
Total assets 396,566,309 137,335,681 533,901,990 330,115,126
Deferred outflows of resources
Deferred charge on refunding 129,865 - 129,865 -
Deferred pension amounts 17,511,730 309,008 17,820,738 2,574,090
Deferred other postemployment benefit amounts 6,010,781 55,808 6,066,589 840,689
Total deferred outflows of resources 23,652,376 364,816 24,017,192 3,414,779
Liabilities
Accounts payable and accrued liabilities 21,769,669 3,448,973 25,218,642 11,758,235
Advances from primary government - - - 306,481
Unearned revenue 42,594,860 198,386 42,793,246 1,572,211
Bonds,notes and other long-term liabilities:
Due within one year 7,125,833 171,524 7,297,357 1,366,730
Due in more than one year 89,539,373 57,070,573 146,609,946 63,091,685
Net other postemployment benefit liability(due in more than one year) 11,137,514 51,245 11,188,759 950,048
Totalliabilities 172,167,249 60,940,701 233,107,950 79,045,390
Deferred inflows of resources
Deferred lease amounts 210,056 944,745 1,154,801 118,162
Property taxes levied for subsequent period 32,920,967 - 32,920,967 453,310
Deferred pension amounts 274,424 45,987 320,411 4,764,366
Deferred other postemployment benefit amounts 15,931,835 99,784 16,031,619 5,657,796
Total deferred inflows of resources 49,337,282 1,090,516 50,427,798 10,993,634
Net position
Net investment in capital assets 88,290,754 50,457,926 138,748,680 200,178,996
Restricted for:
Public safety 2,896,590 2,896,590 -
Health and welfare 9,791,918 - 9,791,918 -
Cultural and recreation 3,602 - 3,602 -
Judicial 205 - 205 -
Community and economic development 6,356,131 - 6,356,131 -
Capital projects - 47,076 47,076 -
Pension 7,276,882 129,657 7,406,539 11,294,619
OPEB - - - 323,561
Budget stabilization 2,504,073 - 2,504,073 -
Other state mandated programs 2,356,671 - 2,356,671 -
Donorspecified purposes - - - 991,666
Replacement and insurance escrow reserves - - - 296,326
Public housing - - - 1,485,953
Unrestricted 79,237,328 25,034,621 104,271,949 28,919,760
Total net position $ 198,714,154 $ 75,669,280 $ 274,383,434 $ 243,490,881
The accompanying notes are an integral part of these basic financial statements.
34
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Activities
For the Year Ended December 31,2022
Program Revenues
Indirect Operating Capital Net
Expense Charges Grantsand Grantsand (Expense)
Functions/Programs Expenses Allocation for Services Contributions Contributions Revenue
Primary government
Governmental activities:
General government $ 26,454,623 $ (4,480,640) $ 1,390,512 $ 7,195,387 $ - $ (13,388,084)
Public safety 33,813,675 181,767 2,548,722 5,057,700 - (26,389,020)
Public works 505,596 - 59,215 - - (446,381)
Health and welfare 27,755,881 3,503,733 1,727,419 13,972,415 - (15,559,780)
Cultural and recreation 4,367,262 - 1,188,564 52,642 - (3,126,056)
Judicial 31,113,605 279,153 3,548,171 10,914,033 - (16,930,554)
Community and economic
development 1,178,884 71,227 2,943,193 93,273 - 1,786,355
Interest and fiscal charges 484,419 - - - - (484,419)
Total governmental activities 125,673,945 (444,760) 13,405,796 37,285,450 - (74,537,939)
Business-type activities:
Airport operations 6,699,671 444,760 3,512,637 6,066,995 331,021 2,766,222
Delinquent tax collection
and administration - - 2,019,324 - - 2,019,324
Local government public works financing 1,926,288 - 115,225 237 - (1,810,826)
Tax reversion 265,575 - 418,212 - - 152,637
Total business-type activities 8,891,534 444,760 6,065,398 6,067,232 331,021 3,127,357
Totalprimarygovernment $ 134,565,479 $ - $ 19,471,194 $ 43,352,682 $ 331,021 $ (71,410,582)
Component units
Kalamazoo County Transportation Authority 3,105,882 - - 130,003 - (2,975,879)
Central County Transportation Authority 12,733,326 - 1,874,130 13,212,336 3,113,932 5,467,072
Road Commission 25,604,459 - 230,018 32,298,807 - 6,924,366
Drainage Districts 206,907 - - - - (206,907)
Land Bank Authority 1,074,694 - 387,723 132,125 - (554,846)
Lake Level Districts (150,589) - - - - 150,589
Public Housing Commission 284,429 - 61,808 162,758 - (59,863)
Brownfield Redevelopment Authority 2,450,260 - 2,500 92,172 - (2,355,588)
Total component units $ 45,309,368 $ - $ 2,556,179 $ 46,028,201 $ 3,113,932 $ 6,388,944
continued...
35
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Activities
For the Year Ended December 31,2022
Primary Government
Governmental Business-type Component
Activities Activities Total Units
Changes in net position
Net(expense)revenue $ (74,537,939) $ 3,127,357 $ (71,410,582) $ 6,388,944
General revenues:
Property taxes 77,347,010 - 77,347,010 8,701,398
Coronavirus State and Local Fiscal Recovery funds,
not restricted to a specific program 10,270,054 - 10,270,054 -
Opioid settlement 5,566,729 - 5,566,729 -
State revenuesharing 5,633,015 - 5,633,015 -
Lodging excise taxes 3,495,596 - 3,495,596 -
Unrestricted investment earnings(loss) 445,396 (30,011) 415,385 32,059
Gain on sale of capital assets 90,086 - 90,086 5,853
Otherrevenues 693,839 - 693,839 428,159
Transfers-internal activities (311,063) 311,063 - -
Total general revenues and transfers 103,230,662 281,052 103,511,714 9,167,469
Change in net position 28,692,723 3,408,409 32,101,132 15,556,413
Net position,beginning of year,as restated 170,021,431 72,260,871 242,282,302 227,934,468
Net position,end of year $ 198,714,154 $ 75,669,280 $ 274,383,434 $ 243,490,881
concluded
The accompanying notes are an integral part of these basic financial statements.
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COUNTY OF KALAMAZOO, MICHIGAN
� Balance Sheet
Governmental Funds
December 31,2022
General Law General
Fund Enforcement Grants
Assets
Cash and cash equivalents $ - $ 2,210,500 $ -
Restricted cash - - -
Investments 86,992,164 71,174 -
Restricted investments - - 42,878,841
Receivables:
Accounts 848,258 17,500 -
Taxes 1,885,937 13,430,793 -
Due from other governments 2,049,744 - -
Leases 213,098 - -
Accrued interest 176,658 6,142 -
Advances to component units 306,481 - -
Inventories 40,147 - -
Prepaids 44,851 10,000 -
Total assets $ 92,557,338 $ 15,746,109 $ 42,878,841
Liabilities
Negative equity in pooled cash and cash equivalents $ 44,020,831 $ - $ 849,757
Accounts payable 2,066,348 44,654 71,744
Accrued liabilities 1,380,436 499,899 -
Due to other governments - - -
Deposits payable 249,113 - -
Unearned revenue - - 41,209,250
Totalliabilities 47,716,728 544,553 42,130,751
Deferred inflows of resources
Deferred lease amounts 210,056 - -
Property taxes levied for subsequent period - 14,187,775 -
Unavailable revenue-opioid settlement - - -
Unavailable revenue-property taxes 1,391,646 19,673 -
Total deferred inflows of resources 1,601,702 14,207,448 -
Fund balances
Nonspendable 391,479 10,000 -
Restricted 2,504,073 984,108 748,090
Committed 647,656 - -
Assigned - - -
Unassigned 39,695,700 - -
Total fund balances 43,238,908 994,108 748,090
Total liabilities,deferred inflows of resources and fund balances $ 92,557,338 $ 15,746,109 $ 42,878,841
The accompanying notes are an integral part of these basic financial statements.
38
Justice
Facility Nonmajor Total
Capital Capital Governmental Governmental
Projects Projects Funds Funds
$ 34,081,181 $ 3,459,437 $ 20,156,925 $ 59,908,043
- 4,141,727 - 4,141,727
1,581,974 22,404,925 144,353 111,194,590
- - - 42,878,841
- - 6,696,364 7,562,122
- - 17,727,159 33,043,889
- - 3,442,680 5,492,424
- - - 213,098
2,720 - - 185,520
- - - 306,481
- - 1,513 41,660
36,265 - 3,909 95,025
$ 35,702,140 $ 30,006,089 $ 48,172,903 $ 265,063,420
$ - $ - $ 811,355 $ 45,681,943
210,130 6,341,002 5,209,268 13,943,146
- 25,676 849,030 2,755,041
- - 524,750 524,750
- - 7,635 256,748
- - 1,385,610 42,594,860
210,130 6,366,678 8,787,648 105,756,488
- - - 210,056
- - 18,733,192 32,920,967
- - 5,566,729 5,566,729
- - 18,094 1,429,413
- - 24,318,015 40,127,165
36,265 - 5,422 443,166
- 23,639,411 14,340,118 42,215,800
- - - 647,656
35,455,745 - 721,700 36,177,445
- - - 39,695,700
35,492,010 23,639,411 15,067,240 119,179,767
$ 35,702,140 $ 30,006,089 $ 48,172,903 $ 265,063,420
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40
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Fund Balances of Governmental Funds
to Net Position of Governmental Activities
December 31,2022
Fund balances-totalgovernmentalfunds $ 119,179,767
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 fund
statements.
Capital assets not being depreciated 66,811,743
Capital assets being depreciated/amortized,net 89,597,284
Less:amounts accounted for in internal service funds (654,731)
The focus of governmental funds is on short-term financing.Accordingly,some assets will not be available to pay for
current-period expenditures.Those assets(such as certain receivables)are offset by deferred inflows of resources in
the governmental funds,and thus are not included in fund balance.
Deferred inflows for opioid settlement 5,566,729
Deferred inflows for property taxes receivable 1,429,413
Internal service funds are used by management to charge the costs of certain activities,such as insurance and other
centralized costs,to individual funds. The assets and liabilities of certain internal service funds are included in
governmental activities.
Net position of governmental activities accounted for in internal service funds:
Total internal service fund net position 10,426,174
Internal service fund net position accounted for in business-type activities (112,387)
Certain liabilities,such as bonds payable,are not due and payable in the current period,and therefore are not
reported in the funds.
Bonds,notes and other long-term liabilities (87,310,631)
Bond premiums/discounts,net (4,576,918)
Deferred charge on bond refunding 129,865
Compensated absences (4,777,657)
Less:amounts accounted for in internal service funds 35,999
Accrued interest on long-term debt (486,116)
Certain pension and OPEB-related amounts,such as the net pension asset,net other postemployment benefit liability
and deferred amounts are not due and payable in the current period or do not represent current financial resources
and therefore are not reported in the funds.
Net pension asset 7,276,882
Net other postemployment benefit liability (11,137,514)
Deferred outflows related to the net pension asset 17,511,730
Deferred outflows related to the net other postemployment benefit liability 6,010,781
Deferred inflows related to the net pension asset (274,424)
Deferred inflows related to the net other postemployment benefit liability (15,931,835)
Net position of governmental activities $ 198,714,154
The accompanying notes are an integral part of these basic financial statements.
41
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Revenues, Expenditures and Change in Fund Balances
Governmental Funds
For the Year Ended December 31,2022
General Law General
Fund Enforcement Grants
Revenues
Taxes $ 45,628,142 $ 13,475,045 $ -
Licenses and permits 688,251 - -
Intergovernmental 16,396,914 570,757 10,270,054
Charges for services 6,868,201 - -
Fines and forfeitures 843,671 - -
Investment earnings(loss) (421,838) (271,496) 744,268
Contributions,grants and reimbursements 4 - -
Other 5,148,919 - -
Total revenues 75,152,264 13,774,306 11,014,322
Expenditures
Current:
General government 14,088,411 - 10,058,498
Public safety 16,893,880 9,198,334 -
Public works 473,712 - -
Health and welfare 5,067,082 578,413 -
Cultural and recreation - - -
ludicial 14,024,687 3,946,556 -
Community and economic development 1,302,945 - -
Other 68,283 - -
Debt service:
Principal - - -
Principal-leases 287,021 - -
Interest and fiscal charges 12,980 - -
Capital outlay - - 211,555
Totalexpenditures 52,219,001 13,723,303 10,270,053
Revenuesover(under)expenditures 22,933,263 51,003 744,269
Other financing sources(uses)
Transfers in 1,605,852 - -
Transfers out (27,444,558) (1,888,799) -
Proceeds from sale of capital assets 22,502 - -
Total other financing sources(uses) (25,816,204) (1,888,799) -
Net change in fund balances (2,882,941) (1,837,796) 744,269
Fund balances,beginning of year 46,121,849 2,831,904 3,821
Fund balances,end of year $ 43,238,908 $ 994,108 $ 748,090
The accompanying notes are an integral part of these basic financial statements.
42
Justice
Facility Nonmajor Total
Capital Capital Governmental Governmental
Projects Projects Funds Funds
$ - $ - $ 21,491,374 $ 80,594,561
- - 864,970 1,553,221
- - 25,514,177 52,751,902
- - 4,133,323 11,001,524
- - - 843,671
25,975 359,992 8,495 445,396
- - 436,613 436,617
- - 32,940 5,181,859
25,975 359,992 52,481,892 152,808,751
- - 13,457 24,160,366
- - 9,576,187 35,668,401
- - - 473,712
- - 25,549,108 31,194,603
- - 3,800,796 3,800,796
- - 12,125,126 30,096,369
- - 943,879 2,246,824
- - - 68,283
- - 1,290,000 1,290,000
- - - 287,021
- - 769,685 782,665
17,985,992 37,150,717 90,603 55,438,867
17,985,992 37,150,717 54,158,841 185,507,907
(17,960,017) (36,790,725) (1,676,949) (32,699,156)
19,943,636 - 13,882,947 35,432,435
- - (3,299,297) (32,632,654)
67,584 - - 90,086
20,011,220 - 10,583,650 2,889,867
2,051,203 (36,790,725) 8,906,701 (29,809,289)
33,440,807 60,430,136 6,160,539 148,989,056
$ 35,492,010 $ 23,639,411 $ 15,067,240 $ 119,179,767
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44
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Net Change in Fund Balances of Governmental Funds
to Change in Net Position of Governmental Activities
For the Year Ended December 31,2022
Net change in fund balances-total governmental funds $ (29,809,289)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However,in the statement of activities,the cost of those
assets is allocated over their estimated useful lives and reported as depreciation/amortization expense.
Capital assets purchased/constructed 53,632,493
Capital assets transferred from internal service fund 735,017
Depreciation/amortization expense (4,705,588)
Proceeds from sale of capital assets (90,086)
Gain on sale of capital assets 90,086
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues
in the funds,but rather are deferred to the following fiscal year.
Change in deferred opioid settlement 5,566,729
Change in deferred property taxes receivable 248,045
Bond proceeds provide current financial resources to governmental funds in the period issued, but issuing bonds
increases long-term debt in the statement of net position. Repayment of bond principal is an expenditure in the
governmental funds,but the repayment reduces long-term debt in the statement of net position.
Principal payments on bonds,notes and other long-term liabilities 1,577,021
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 payable on long-term debt 15,133
Amortization of bond premiums/discounts 297,027
Amortization of deferred charge on refunding (13,914)
Change in the accrual for compensated absences 87,411
Change in the net pension asset and related deferred amounts (4,900,939)
Change in the net other postemployment benefit liability and related deferred amounts 8,060,182
An internal service fund is used by management to charge the costs of certain services to individual governmental
funds. The net revenue(expense)attributable to those funds is reported with governmental activities.
Net operating income of the internal service funds 1,746,422
Operating income of the internal service funds allocated to business-type activities (35,310)
Investment earnings accounted for in the internal service funds 38,144
Operating transfers accounted for in the internal service funds (3,845,861)
Change in net position of governmental activities $ 28,692,723
The accompanying notes are an integral part of these basic financial statements.
45
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Revenues, Expenditures and Change in Fund Balances
Budget and Actual-General Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Revenues
Taxes $ 44,626,100 $ 44,626,100 $ 45,628,142 $ 1,002,042
Licenses and permits 879,500 879,500 688,251 (191,249)
Intergovernmental 13,899,200 13,899,200 16,396,914 2,497,714
Charges for services 6,524,900 7,224,900 6,868,201 (356,699)
Fines and forfeitures 800,600 800,600 843,671 43,071
Investment earnings(loss) 905,000 905,000 (421,838) (1,326,838)
Contributions,grants,and reimbursements - - 4 4
Other 5,455,700 5,484,500 5,148,919 (335,581)
Total revenues 73,091,000 73,819,800 75,152,264 1,332,464
Expenditures
Current:
General government 14,322,900 14,738,300 14,088,411 (649,889)
Public safety 18,686,100 17,323,300 16,893,880 (429,420)
Public works 439,000 513,000 473,712 (39,288)
Health and welfare 5,171,100 5,224,500 5,067,082 (157,418)
Judicial 14,409,500 14,820,900 14,024,687 (796,213)
Community and economic development 1,258,100 1,419,100 1,302,945 (116,155)
Other 869,800 1,412,500 68,283 (1,344,217)
Debt service:
Principal-leases - - 287,OZ1 287,021
Interest and fiscal charges - - 12,980 12,980
Total expenditures 55,156,500 55,451,600 52,Z19,001 (3,232,599)
Revenues over expenditures 17,934,500 18,368,200 22,933,263 4,565,063
Other financing sources(uses)
Transfers in 1,590,000 1,590,000 1,605,852 15,852
Transfers out (19,539,500) (29,722,400) (27,444,558) (2,277,842)
Proceeds from sale of capital assets 15,000 15,000 22,502 7,502
Total other financing uses(uses) (17,934,500) (28,117,400) (25,816,204) 2,301,196
Net change in fund balance - (9,749,200) (2,882,941) 6,866,259
Fund balance,beginning of year 46,121,849 46,121,849 46,121,849 -
Fund balance,end of year $ 46,121,849 36,372,649 $ 43,Z38,908 $ 6,866,259
The accompanying notes are an integral part of these basic financial statements.
46
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Revenues, Expenditures and Change in Fund Balances
Budget and Actual- Law Enforcement Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Revenues
Taxes $ 13,462,400 $ 13,462,400 $ 13,475,045 $ 12,645
Intergovernmental 585,400 585,400 570,757 (14,643)
Investment earnings(loss) 30,500 30,500 (Z71,496) (301,996)
Total revenues 14,078,300 14,078,300 13,774,306 (303,994)
Expenditures
Current:
Public safety:
Community corrections 11,000 11,000 11,000 -
Sheriff-jail 8,243,800 8,713,900 8,619,884 (94,016)
Sheriff-field operations - 162,900 162,900 -
Animal services&enforcement 391,700 409,700 404,550 (5,150)
Total public safety 8,646,500 9,297,500 9,198,334 (99,166)
Health and welfare-
Circuit court family division 622,700 590,700 578,413 (12,287)
Judicial:
Prosecuting attorney 2,117,100 2,006,500 1,965,348 (41,152)
Circuit court trial division 572,900 582,900 542,368 (40,532)
District court 1,575,500 1,460,000 1,438,840 (21,160)
Total judicial 4,265,500 4,049,400 3,946,556 (102,844)
Other:
Contingencies 50,000 50,000 - (50,000)
Total expenditures 13,584,700 13,987,600 13,723,303 (264,297)
Revenues over(under)expenditures 493,600 90,700 51,003 (39,697)
Other financing uses
Transfers out (1,889,000) (1,889,000) (1,888,799) (201)
Net change in fund balance (1,395,400) (1,798,300) (1,837,796) (39,496)
Fund balance,beginning of year 2,831,904 2,831,904 2,831,904 -
Fund balance,end of year $ 1,436,504 $ 1,033,604 $ 994,108 $ (39,496)
The accompanying notes are an integral part of these basic financial statements.
47
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Revenues, Expenditures and Change in Fund Balances
Budget and Actual-General Grants Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Revenues
Intergovernmental $ - $ 24,458,300 $ 10,270,054 $ (14,188,246)
Investment earnings - - 744,268 744,268
Other 50,000 3,945,800 - (3,945,800)
Total revenues 50,000 28,404,100 11,014,322 (17,389,778)
Expenditures
Current:
General government 50,000 24,617,400 10,058,498 (14,558,902)
Capital outlay - 3,786,700 211,555 (3,575,145)
Total expenditures 50,000 28,404,100 10,270,053 (18,134,047)
Net change in fund balance - - 744,269 744,269
Fund balance, beginning of year 3,821 3,821 3,821 -
Fund balance,end of year $ 3,821 $ 3,821 $ 748,090 $ 744,269
The accompanying notes are an integral part of these basic financial statements.
48
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49
COUNTY OF KALAMAZOO,MICHIGAN
� Statement of Net Position
Proprietary Funds
December 31,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Local Nonmajor
Government Fund- Internal
Delinquent Tax Public Works Tax Service
Airport Revolving Financing Reversion Total Funds
Assets
Current assets:
Cash and cash equivalents $ 2,621,742 $ 10,015,482 $ 237 $ 3,240,958 $ 15,878,419 $ 12,366,824
Investments - 328,437 - - 328,437 -
Receivables:
Accounts 795,683 - - S,S00 801,183 922,557
Taxes - 7,089,437 - - 7,089,437 -
Due from other governments 3,950,019 - - - 3,950,019 -
Installment sales agreements,current portion - - 505,437 - 505,437 -
Leases 55,762 - - - 55,762 -
Accrued interest - - - - - 704
Inventories 59,115 - - - 59,115 127,400
Prepaids 13,595 - - - 13,595 956,466
Totalcurrentassets 7,495,922 17,433,356 505,674 3,246,458 25,681,410 14,403,951
Noncurrent assets:
Restricted�ash and cash equivalents 44S - - - 44S -
Restricted ac�ounts receivable 46,625 - - - 46,625 -
Installment sales agreements,net of current portion - - 57,003,775 - 57,003,775 -
Leasesreceivable 903,447 - - - 903,447 -
Net pension asset 129,657 - - - 129,657 -
Capital assets not being depre�iated 15,239,392 - - - 15,239,392 453,904
Capital assets being depreciated,net 35,218,534 - - - 35,218,534 200,827
Totalnoncurrentassets 51,538,106 - 57,003,775 - 108,541,884 654,731
Totalassets 59,034,025 17,433,356 57,509,452 3,246,458 137,223,294 15,058,682
Deferred outflows of resources
Deferred pension amounts 309,OOS - - - 309,OOS -
Deferred other postemployment benefit amounts 55,805 - - - 55,805 -
Total deferred outflows of resources 364,816 - - - 364,816 -
Liabilities
Current liabilities:
Negative equity in cash and�ash equivalents - - - - - 792,641
Accounts payable 1,011,068 - - 13,866 1,024,934 630,427
Accrued liabilities 76,501 - - - 76,501 269,449
Deposits payable 42,047 - - - 42,047 64,955
A�crued interest - - 401,186 - 401,186 -
Undistributed receipts - - - 1,904,305 1,904,305 -
Unearnedrevenue 198,386 - - - 195,386 -
Claims payable - - - - - 2,839,007
Current portion of bonds,notes and other long-term liabilities 67,273 - 104,251 - 171,524 35,999
Total current liabilities 1,395,275 - 505,437 1,918,171 3,818,883 4,632,508
Noncurrent liabilities,net of current portion:
Bonds,notes and other long-term liabilities 66,795 - 57,003,775 - 57,070,573 -
Net other postemployment benefit liability 51,245 - - - 51,245 -
Total non�urrent liabilities 115,040 - 57,003,775 - 57,121,815 -
Totalliabilities 1,513,315 - 57,509,215 1,918,171 60,940,701 4,632,508
Deferred inflows of resources
Deferred lease amounts 944,745 - - - 944,745 -
Deferred pension amounts 45,987 - - - 45,987 -
Deferred other postemployment benefit amounts 99,784 - - - 99,784 -
Total deferred inflows of resources 1,090,516 - - - 1,090,516 -
Net position
investment in capital assets 50,457,926 - - - 50,457,926 654,731
Restricted for capital projects 47,076 - - - 47,076 -
Restricted for pension 129,657 - - - 129,657 -
Unrestricted 6,160,354 17,433,356 237 1,328,257 24,922,234 9,771,443
Totalnetposition $ 56,795,013 $ 17,433,356 5 237 $ 1,328,287 $ 75,556,893 $ 10,426,174
The accompanying notes are an integral part of these basic financial statements.
50
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Net Position of Enterprise Funds
to Net Position of Business-type Activities
December 31, 2022
Net position-total enterprise funds $ 75,556,893
Amounts reported for business-type activities in the statement of net position are different
because:
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and other centralized costs, to individual funds. A portion of the net
position of the internal service funds is allocated to the enterprise funds and reported in
the statement of net position.
Net position of business-type activities accounted for in governmental-type internal
service funds 112,387
Net position of business-type activities $ 75,669,280
The accompanying notes are an integral part of these basic financial statements.
51
COUNTY OF KALAMAZOO,MICHIGAN
� Statement of Revenues,Expenses and Change in Fund Net Position
Proprietary Funds
For the Year Ended December 31,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Local Nonmajor
Government Fund- Internal
Delinquent Tax Public Works Tax Service
Airport Revolving Financing Reversion Total Funds
Operatingrevenues
Charges for services $ 3,512,637 $ - $ - $ - $ 3,512,637 $ 30,499,360
Collectionfees - 712,148 - 418,212 1,130,360 -
Interest and penalties - 1,307,176 - - 1,307,176 -
Instalmentsalesagreementsinterestrevenue - - 115,225 - 115,225 -
Totaloperetingrevenues 3,512,637 2,019,324 115,225 418,212 6,065,398 30,499,360
Operating expenses
Salaries and fringes 1,691,440 - - - 1,691,440 681,352
Suppliesand otheroperating expenses 3,127,589 - - 265,575 3,393,164 1,991,468
Depreciation 2,305,220 - - - 2,305,220 120,356
Insurance benefits and daims - - - - - 25,959,702
Totaloperating expenses 7,127,249 - - 265,575 7,392,824 28,752,938
Operating income(loss) (3,614,612) 2,019,324 115,225 152,637 (1,327,426) 1,746,422
Nonoperatingrevenues(expenses)
Investment earnings(loss) 1,114 (30,011) 237 - (28,660) 38,144
Othercontractrevenue 37,495 - - - 37,495 -
Grants and contributions 6,025,386 - - - 6,028,386 -
Interest expense (52,492) - (1,926,285) - (1,978,780) -
Totalnonoperatingrevenues(expenses) 6,014,503 (30,011) (1,926,051) - 4,058,441 38,144
Income(loss)before capital
contributions and transfers 2,399,891 1,989,313 (1,810,826) 152,637 2,731,015 1,784,566
Capital contributions
Passengerfacilitycharges 235,893 - - - 235,593 -
Grantsand donations 95,125 - - - 95,125 -
Totalcapitalcontributions 331,021 - - - 331,021 -
Income(loss)before trensfers 2,730,912 1,989,313 (1,810,826) 152,637 3,062,036 1,784,566
Transfers in - - 1,811,063 - 1,811,063 868,323
Transfers out - (1,500,000) - - (1,500,000) (4,714,154)
Changein netposition 2,730,912 459,313 237 152,637 3,373,099 (2,061,295)
Net position,beginning of year 54,064,101 16,944,043 - 1,175,650 72,183,794 12,487,469
Netposition,end ofyear $ 56,795,013 $ 17,433,356 $ 237 $ 1,328,257 $ 75,556,893 $ 10,426,174
The accompanying notes are an integral part of these basic financial statements.
52
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Net Change in Fund Net Position of Enterprise Funds
to Change in Net Position of Business-type Activities
For the Year Ended December 31, 2022
Change in net position-total enterprise funds $ 3,373,099
Amounts reported for business-type activities in the statement of activities
are different because:
Internal service funds are used by management to charge the costs of certain activities,
such as insurance and other centralized costs, to individual funds. A portion of the
operating income of the internal service funds is allocated to the enterprise funds and
reported in the statement of activities.
Net operating income from business-type activities accounted for in governmental-type
internal service funds 35,310
Change in net position of business-type activities $ 3,408,409
The accompanying notes are an integral part of these basic financial statements.
53
COUNTY OF KALAMAZOO,MICHIGAN
� Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Local Nonmajor
Government Fund- Internal
DelinquentTax PublicWorks Tax Service
Airport Revolving Financing Reversion Total Funds
Cash flows from operating activities
Receipts from customers and users $ 3,656,526 $ 13,953,745 $ 4,179,471 $ 1,329,252 $ 23,118,994 $ 30,522,990
Payments[o vendors (4,912,495) - - (278,650) (5,191,145) (1,895,345)
Payments for personnel services (1,617,099) - - - (1,617,099) (733,142)
Benefit payments - - - - - (26,350,951)
Delinquen[[axes purchased - (11,860,899) - - (11,860,899) -
Net cash provided by(used in)operating
activities (2,873,068) 2,092,846 4,179,471 1,050,602 4,449,851 1,543,552
Cash flows from noncapital financing activities
Othercontractrevenuereceived 37,495 - - - 37,495 -
Grantsand contributions 6,028,386 - - - 6,028,386 -
Proceeds onissuance oflong-term debt - - 55,235,000 - 55,235,000 -
Premium on issuance of long-term debt - - 1,762,717 - 1,762,717 -
Issuance of installment sales agreement - - (56,997,717) - (56,997,717) -
Principal paid on long-term debt - - (4,320,000) - (4,320,000) -
Interest paid on long-term debt - - (1,670,534) - (1,670,534) -
Transfers from other funds - - 1,811,063 - 1,811,063 868,323
Transfers to other funds - (1,500,000) - - (1,500,000) -
Net cash provided by(used in)noncapital
financing activities 6,065,881 (1,500,000) (4,179,471) - 386,410 868,323
Cash flows from capital and related financing
activities
Passenger facility charges collec[ed 235,893 - - - 235,893 -
O[her capital con[ributions received 95,128 - - - 95,128 -
Purchase of capital assets (3,595,948) - - - (3,595,948) (118,540)
Principal paid on long-term debt (2,115,000) - - - (2,115,000) -
Interest paid on long-term debt (35,188) - - (35,188) -
Net cash used in capital and related
financing activities (5,415,115) - - - (5,415,115) (118,540)
Cash flows from investing activities
Purchase of investments - (1,394) - - (1,394) -
Investment earnings(loss) 1,114 (30,011) 237 - (28,660) 38,144
Net cash provided by(used in)investing activities 1,114 (31,405) 237 - (30,054) 38,144
Net increase(decrease)in cash and cash equivalents (2,221,188) 561,441 237 1,050,602 (608,908) 2,331,479
Cash and cash equivalents,beginning of year 4,843,378 9,454,041 - 2,190,356 16,487,775 10,035,345
Cash and cash equivalents,end of year $ 2,622,190 $ 10,015,482 $ 237 $ 3,240,958 $ 15,878,867 $ 12,366,824
Classification on the statement of net position
Cash and cash equivalents $ 2,621,742 $ 10,015,482 $ 237 $ 3,240,958 $ 15,878,419 $ 12,366,824
Noncurrent restricted cash and cash equivalents 448 - - - 448 -
$ 2,622,190 $ 10,015,482 $ 237 $ 3,240,958 $ 15,878,867 $ 12,366,824
Noncash trensaction: continued...
The internal service funds had noncash trensfers of$735,017 in capital assets during the year to governmental activities.
The internal service funds had trensfers of$3,979,167 in prepaids during the year[o[he Capital Projec[s fund.
54
COUNTY OF KALAMAZOO,MICHIGAN
� Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31,2022
Governmental
Business-type Activities-Enterprise Funds Activities
Local Nonmajor
Government Fund- Internal
DelinquentTax PublicWorks Tax Service
Airport Revolving Financing Reversion Total Funds
Reconciliation of operating income(loss)to net
cash provided by(used in)operating activities
Operating income(loss) $ (3,614,612) $ 2,019,324 $ 115,225 $ 152,637 $ (1,327,426) $ 1,746,422
Adjustmen[s to reconcile opera[ing income(loss)
to net cash provided by(used in)operating activities:
Depreciation expense 2,308,220 - - - 2,308,220 120,386
Changein:
Accounts receivable (1,369) - - 2,600 1,231 (216,692)
Taxesreceivable - 45,217 - 260,843 306,060 -
Due from other governments (2,507,126) - - - (2,507,126) -
Installment sales agreement receivable - - 4,064,246 - 4,064,246 -
Leasesreceivable (959,209) - - - (959,209) -
Accrued interest receivable - 28,305 - - 28,305 3,068
Inven[ories (10,461) - - - (10,461) (24,606)
Prepaids 7,898 - - - 7,898 204,550
Netpension asset 653,676 - - - 653,676 -
Deferred ou[flows of resources-pension amounts (240,603) - - - (240,603) -
Deferred ou[flows of resources-other pos[employment
benefit amounts (13,618) - - - (13,618) -
Negative equity in cash and cash equivalents - - - - - 247
Accountspayable 694,759 - - (13,075) 681,684 14,120
Accrued liabilities 13,641 - - - 13,641 (14,101)
Undistribu[ed receipts - - - 647,597 647,597 -
Deposits payable 30,024 - - - 30,024 (17,285)
Unearned revenue 159,722 - - - 159,722 -
Claims payable - - - - - (234,898)
Compensated absences 30,894 - - - 30,894 (37,659)
Net other pos[employment benefit liability (81,403) - - - (81,403) -
Deferred inflows of resources-lease amounts 944,745 - - - 944,745 -
Deferred inflows of resources-pension amounts (336,801) - - - (336,801) -
Deferred inflows of resources-other pos[employment
benefit amounts 48,555 - - - 48,555 -
Net cash provided by(used in)operating activities $ (2,873,068) $ 2,092,846 $ 4,179.471 $ 1,050,602 $ 4,449,851 $ 1,543,552
conduded
The accompanying notes are an integral par[of[hese basic financial statements.
55
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Fiduciary Net Position
Fiduciary Funds
December 31,2022
Pension
and Retiree
Health Care Custodial
Trust Funds Funds
Assets
Cash and cash equivalents $ 9,712,951 $ 1,813,616
Investments,at fair value:
U.S.government securities 19,246,745 -
U.S.agency securities 18,527,103 -
Corporate obligations 22,175,480 -
Municipal bonds 42,697 -
Foreign corporate obligations 2,763,631 -
Mortgage-backed funds 2,691,038 -
Domestic equity mutual funds/
collective trust funds 123,397,433 -
Emerging market mutual funds 25,179,085 -
International equity mutual funds 26,151,335 -
Real estate investment trust 6,094,680 -
Real estate pooled separate account 9,314,583 -
Receivables:
Sale of investments 2,664,409 -
Interest and dividends 435,990 -
Employer contributions 99,884 -
Other 71,481 134,265
Other assets-prepaids 111,387 -
Total assets 268,679,912 1,947,881
Liabilities
Accounts payable 66,917 -
Benefits payable 1,045,583 -
Purchase of investments 5,900,307 -
Undistributed collections - 1,098,509
Total liabilities 7,012,807 1,098,509
Net position
Restricted for:
Employees'pension benefits 229,572,460 -
Other postemployment benefits 32,094,645 -
Individuals,organizations and other governments - 849,372
Total net position $ 261,667,105 $ 849,372
The accompanying notes are an integral part of these basic financial statements.
56
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended December 31,2022
Pension
and Retiree
Health Care Custodial
TrustFunds Funds
Additions
Contributions:
Employer S 6,803,422 S -
Investment earnings(loss):
Net depreciation in fair value of investments (44,912,709) -
Income on mutual funds 5,190,469 -
Interest and dividends 2,081,687 -
Income on real estate pooled separate account 239,576 -
Total investment earnings(loss) (37,400,977) -
Investment expense (909,331) -
Net investment earnings(loss) (38,310,308) -
Collections:
Inmate trust collections - 1,291,752
Library collections - 309,529
Circuit court trial division collections - 799,794
District court collections - 143,737
Probate court collections - 50,578
County clerk/register of deeds collections - 875,266
Treasurer collections - 71,757,484
Sheriff-administration/support collections - 94,476
Other collections - 51,748
Total additions(net of investment loss) (31,506,886) 75,374,364
Deductions
Benefit payments 16,349,638 -
Administrative expenses 790,376 -
Distributions:
Inmate trust distributions - 1,278,387
Library distributions - 309,529
Circuit court trial division distributions - 668,220
Circuit court family division distributions - 45
District court distributions - 143,737
Probate court distributions - 3,023
County clerk/register of deeds distributions - 874,058
Treasurer distributions - 71,548,470
Sheriff-administration/support distributions - 94,603
Other deductions - 72,582
Total deductions 17,140,014 74,992,654
Change in net position (48,646,900) 381,710
Net position,beginning of year 310,314,005 467,662
Net position,end of year $ 261,667,105 $ 849,372
The accompanying notes are an integral part of these basic financial statements.
57
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Net Position
Discretely Presented Component Units
September 30,2022 December 31,2022
Kalamazoo
County Central County
Transportation Transportation Road Drainage
Authority Authority Commission Districts
Assets
Cash and cash equivalents $ - $ 9,145,943 $ 11,744,673 $ 1,358,931
Restricted cash - - 38,279,189 -
Investments - - - -
Receivables 604,568 7,086,993 5,359,022 2,412,064
Other assets - 916,431 1,443,587 -
Net pension asset - 10,647,972 646,647 -
Net OPEB asset - - 323,561 -
Capital assets not being depreciated - 2,040,922 51,156,787 98,912
Capital assets being depreciated,net - 21,958,970 142,168,468 5,649,454
Total assets 604,568 51,797,231 251,121,934 9,519,361
Deferred outflows of resources
Deferred pension amounts - 1,016,540 1,557,550 -
Deferred other postemployment benefit amount� - 489,309 351,380 -
Total deferred outflows of resources - 1,505,849 1,908,930 -
Liabilities
Accounts payable and accrued liabilitie� 604,568 1,249,461 8,354,859 301,923
Advances from primary government - - - 306,481
Unearned revenue - 1,372,231 194,634 -
Bonds,notes and other long-term liabilities,
Due within one year - 433,606 196,225 326,899
Due in more than one year - 3,705,479 56,997,717 1,054,316
Net other postemployment benefit
liability(due in more than one year; - 950,048 - -
Totalliabilities 604,568 7,710,825 65,743,435 1,989,619
Deferred inflows of resources
Deferred lease amounts - - - -
Property taxes levied for subsequent period - - - -
Deferred pension amounts - 4,405,067 359,299 -
Deferred other postemployment benefit amount� - 5,048,849 608,947 -
Total deferred inflows of resources - 9,453,916 968,246 -
Net position
Net investment in capital asset<_ - 23,999,892 168,632,317 4,367,151
Restricted for:
Pension - 10,647,972 646,647 -
OPEB - - 323,561 -
Donor specified purposes - - - -
Replacement and insurance escrow reserve< - - - -
Assets held at Community Foundation - - - -
Millage service agreement - - - -
Keystone veterans initiative - - - -
Unrestricted - 1,490,475 16,716,658 3,162,591
Total net position $ - $ 36,138,339 $ 186,319,183 $ 7,529,742
The accompanying notes are an integral part of these basic financial statements.
58
December 31,2022
Kalamazoo
County
Lake Public Brownfield
Land Bank Level Housing Redevelopment
Authority Districts Commission Authority Total
$ 2,107,268 $ 11,944 $ 1,504,622 $ 6,610,772 $ 32,484,153
311,961 - - - 38,591,150
- - - 989,409 989,409
218,760 13,260 95,846 504,317 16,294,830
966,961 - 157,276 - 3,484,255
- - - - 11,294,619
- - - - 323,561
16,001 340,985 32,335 - 53,685,942
3,081,800 - 108,515 - 172,967,207
6,702,751 366,189 1,898,594 8,104,498 330,115,126
- - - - 2,574,090
- - - - 840,689
- - - - 3,414,779
318,905 - 32,749 895,770 11,758,235
- - - - 306,481
5,346 - - - 1,572,211
- 400,000 - 10,000 1,366,730
- - - 1,334,173 63,091,685
- - - - 950,048
324,251 400,000 32,749 2,239,943 79,045,390
82,270 - 35,892 - 118,162
- - - 453,310 453,310
- - - - 4,764,366
- - - - 5,657,796
82,270 - 35,892 453,310 10,993,634
3,097,801 (59,015) 140,850 - 200,178,996
- - - - 11,294,619
- - - - 323,561
991,666 - - - 991,666
296,326 - - - 296,326
- - 147,315 - 147,315
- - 1,309,934 - 1,309,934
- - 28,704 - 28,704
1,910,437 25,204 203,150 5,411,245 28,919,760
$ 6,296,230 $ (33,811) $ 1,829,953 $ 5,411,245 $ 243,490,881
59
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Activities
Discretely Presented Component Units
Year Ended September 30,2022 Year Ended December 31,2022
Kalamazoo
County Central County
Transportation Transportation Road Drainage
Authority Authority Commission Districts
Expenses
Kalamazoo County Transportation Authority $ 3,105,882 $ - $ - $ -
Central County Transportation Authority - 12,733,326 - -
Road Commission - - 25,604,459 -
Drainage Districts - - - 206,907
Land Bank Authority - - - -
Lake Level Districts - - - -
Public Housing Commission - - - -
Brownfield Redevelopment Authority - - - -
Total expenses 3,105,882 12,733,326 25,604,459 206,907
Progrem revenues
Charges for services - 1,874,130 230,018 -
Operating grants and contributions 130,003 13,212,336 32,298,807 -
Capital grants and contributions - 3,113,932 - -
Total program revenues 130,003 18,200,398 32,528,825 -
Net(expense)revenue (2,975,879) 5,467,072 6,924,366 (206,907)
General revenues
Property taxes 2,975,879 5,005,102 - -
Unrestricted investment earnings(loss; - 10,452 - 6,944
Gain on sale of capital asset<_ - 5,853 - -
Other revenues - - 45,312 132,478
Total general revenues 2,975,879 5,021,407 45,312 139,422
Change in net position - 10,488,479 6,969,678 (67,485)
Net position,beginning of year,as restatec - 25,649,860 179,349,505 7,597,227
Net position,end ofyear $ - $ 36,138,339 $ 186,319,183 $ 7,529,742
The accompanying notes are an integral part of these basic financial statements.
60
Year Ended December 31,2022
Kalamazoo
County
Lake Public Brownfield
Land Bank Level Housing Redevelopment
Authority Districts Commission Authority Total
$ - $ - $ - $ - $ 3,105,882
- - - - 12,733,326
- - - - 25,604,459
- - - - 206,907
1,074,694 - - - 1,074,694
- (150,589) - - (150,589)
- - 284,429 - 284,429
- - - 2,450,260 2,450,260
1,074,694 (150,589) 284,429 2,450,260 45,309,368
387,723 - 61,808 2,500 2,556,179
132,125 - 162,758 92,172 46,028,201
- - - - 3,113,932
519,848 - 224,566 94,672 51,698,312
(554,846) 150,589 (59,863) (2,355,588) 6,388,944
- - - 720,417 8,701,398
14,638 284 (31,142) 30,883 32,059
- - - - 5,853
250,098 271 - - 428,159
264,736 555 (31,142) 751,300 9,167,469
(290,110) 151,144 (91,005) (1,604,288) 15,556,413
6,586,340 (184,955) 1,920,958 7,015,533 227,934,468
$ 6,296,230 $ (33,811) $ 1,829,953 $ 5,411,245 $ 243,490,881
61
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62
NOTES TO FINANCIAL STATEMENTS
63
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The County of Kalamazoo, Michigan (the "County" or the "government")was organized as a county by the
territorial legislature on July 30, 1830. An eleven-member Board of Commissioners governs the County.
The County provides the following services: general governmental administrative services, public safety,
public works, health and welfare, cultural and recreation, judicial and community and economic
development.
The financial statements of the County have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards
Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial
reporting principles.The more significant of the County's accounting policies are described below.
Reporting Entity
As required by generally accepted accounting principles, these financial statements present the government
and its component units, entities for which the County is financially accountable. Blended component units,
although legally separate entities, are, in substance, part of the government's operations and as such, data
from these units are combined with data of the primary government. Discretely presented component
units, on the other hand, are reported in a separate column in the combined financial statements to
emphasize that they are legally separate from the government. Fiduciary component units include certain
pension and OPEB plans and other component units that are fiduciary in nature. Each blended, discretely
presented, and fiduciary component unit has a December 31 year-end, except for the Kalamazoo County
Transportation Authority and the Central County Transportation Authority, which have September 30 year-
ends to be consistent with the fiscal period of their grantor agencies.
elended Component Unit
Kalamazoo County Building Authority - The Kalamazoo County Building Authority is governed by a board
which is appointed by the County Board of Commissioners. Although it is legally separate from the County,
the Kalamazoo County Building Authority is reported as if it were part of the primary government because
its sole purpose is to finance and construct the County's public buildings. A separate report is not prepared
for the Building Authority.
Discretely Presented Component Units
Kalamazoo County Transportation Authority - The Kalamazoo County Transportation Authority (the
"Authority"), established pursuant to the provisions of Act No. 196, of the Public Acts of 1986, as amended,
is governed by a nine-member board of directors appointed by the County Board. The Authority may issue
debt without the approval of the County Board and may levy a tax on all of the taxable property within the
jurisdictional limits/boundaries of the Authority, for transportation purposes, with the approval of the
registered electors residing in the jurisdictional limits/boundaries. The County is a direct beneficiary of the
services provided. The Authority's fiscal year end is September 30. The component unit is audited
individually and complete financial statements can be obtained from the Authority's administrative offices.
64
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Central County Transportation Authority - The Central County Transportation Authority (the
"Transportation Authority"), established pursuant to the provisions of Act No. 196, of the Public Acts of
1986, as amended, is governed by an eleven-member board of directors appointed by the County Board.
The Transportation Authority may issue debt without the approval of the County Board and may levy a tax
on all of the taxable property within the jurisdictional limits/boundaries of the Transportation Authority,for
transportation purposes, with the approval of the registered electors residing in the jurisdictional
limits/boundaries. The County is a direct beneficiary of the services provided. The Transportation
Authority's fiscal year end is September 30. The component unit is audited individually and complete
financial statements can be obtained from the Transportation Authority's administrative offices.
Kalamazoo County Road Commission -The Kalamazoo County Road Commission (the "Road Commission")
is responsible for the maintenance and construction of the County road system. The County appoints the
members of the Road Commission Board and is a direct beneficiary of the services provided. The Road
Commission may not issue debt or levy a tax without the approval of the County Board.The component unit
is audited individually and complete financial statements can be obtained from the Road Commission's
administrative office.
Drainage Districts - The Drainage Districts consist of multiple individual districts created for alleviating
drainage problems and is under the control of the County Drain Commissioner. Each drainage district
accounts for the construction, maintenance, and financing costs associated with its drain program. Each
individual district is a separate legal entity with power to assess the benefiting communities, including the
County and the State of Michigan for road drainage. The County is a direct beneficiary of the service
provided and its employees run the day-to-day operations. In addition, the County often pledges its full
faith and credit for the long-term debt of the drainage districts. Based on the recommendations of the
Michigan Department of Treasury, the County has determined that it would be misleading to exclude this
entity from the County reporting entity. The financial activity of the Drainage Districts for the year ended
December 31, 2022 is reported discretely as a governmental fund type. There are no separately issued
financial statements of this component unit.
Kalamazoo County Land Bank Authority - The Kalamazoo County Land Bank Authority (the "Land Bank"),
established in 2009 under agreement with the Michigan Land Bank Fast Track Authority and the Treasurer
of the County of Kalamazoo with approval of the Board of Commissioners for the County of Kalamazoo
under PA 128 of 2003 as amended, is governed by the County appointed seven member County Authority
Board. The Kalamazoo County Land Bank Authority has the authority to acquire, manage, and dispose of
interests in property, borrow money, and issue bonds and notes. Because members of the Land Bank are
appointed by the County Board, the County exercises effective control over its activities. The County is a
direct beneficiary of the services provided. The component unit is audited individually and complete
financial statements can be obtained from the Land Bank's administrative office.
65
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Lake Level - The County Drain Commissioner also administers the activity reported in the County's Lake
Level Fund, as permitted by Act 451 PA 1994, as amended, (MCL 324.30701 et al.). Lake level projects
establish the lake levels for inland lakes and perform construction and maintenance related to maintaining
the established levels. Projects may be funded through the levying of special assessments or by issuing debt,
and the County is a direct beneficiary of the services provided. The financial activity of the Lake Level Fund
for the year ended December 31, 2022 is reported discretely as a governmental fund type. There are no
separately issued financial statements of this component unit.
Kalamazoo County Public Housing Commission - The Kalamazoo County Public Housing Commission (the
"Housing Commission") was created by ordinance adopted by the County Board in 2002. The Housing
Commission is authorized to acquire and operate housing facilities for low income families within
unincorporated areas of Kalamazoo County, and to contract for similar services with incorporated areas of
the County. The County appoints the members of the Housing Commission Board and is a direct beneficiary
of the services provided. The component unit is audited individually and complete financial statements can
be obtained from the Housing Commission's administrative office.
Brownfield Redevelopment Authority - The Brownfield Redevelopment Authority (the "Brownfield") was
established to review and approve plans for business development within designated areas of the County
where property was once contaminated. Property tax revenues from the "captured" portion of these
properties are restricted to pay for site clean-up expenditures and future development depending on the
development plan adopted for each project. Funding is provided through tax increment financing, federal
and state grants, and General Fund appropriations. The Chairperson of the Kalamazoo County Board of
Commissioners, with the advice and consent of the Kalamazoo County Board of Commissioners shall
appoint the members to the Authority." The financial activity of the Brownfield for the year ended
December 31, 2022 is reported discretely as a governmental fund type. There are no separately issued
financial statements of this component unit.
The Economic Development Corporation of the County of Kalamazoo - The Economic Development
Corporation of the County of Kalamazoo (EDC) is a separate legal entity that was established pursuant to
Michigan Public Act 338 of 1974, in order to stimulate business capital investment, contribute to the area's
employment, increase tax base, and provide needed public services.The EDC shall be directed and governed
by a Board of Directors of not less than nine (9) members known as "Directors," ...each to be appointed by
the Chairperson of the County Board of Commissioners, with the advice and consent of said County Board
of Commissioners. In certain situations, members of the EDC Board of Directors may be removed by a
majority decision of the County Board. Separate financial statements are not prepared for this entity. The
EDC had no activity during the year, and has therefore not been included in the financial statements.
Administrative Offices
Kalamazoo County Transportation Authority Kalamazoo County Land Bank Authority
201 West Kalamazoo Avenue 229 East Michigan Avenue, Suite 340
Kalamazoo, Michigan 49007 Kalamazoo, Michigan 49007
Central County Transportation Authority Kalamazoo County Public Housing Commission
530 N. Rose Street P.O. Box 101
Kalamazoo, Michigan 49007 Nazareth, Michigan 49074
66
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Administrative Offices(Concluded)
Kalamazoo County Road Commission
3801 East Kilgore Road
Kalamazoo, Michigan 49002
Complete financial statements for these discretely presented component units may be obtained at the
entity's administrative offices listed above.Accordingly,the County has elected to omit substantially all note
disclosures related to these component units in these financial statements.
Fiduciary Component Units
The Employees' Retirement System (the System) is a cost-sharing multiple-employer defined benefit
contributory retirement plan which provides pension, death and disability benefits covering certain full-time
employees of Kalamazoo County. The System is administered through a qualified trust and reported in the
Pension Trust Fund. Plan amendments are under the authority of County ordinances. The County is
financially accountable for the System, as it obligated to make employer contributions; accordingly, it is
included as a fiduciary component unit in the County's financial statements. Changes in required
contributions are subject to collective bargaining agreements and approval by the Kalamazoo County Board
of Commissioners.
The Retiree Health Care Trust (the Plan) is a cost-sharing multiple-employer defined benefit
postemployment healthcare plan established and administered by Kalamazoo County to provide medical
and healthcare benefits for retirees and their beneficiaries. The Plan is administered through a qualified
trust and reported in the Retiree Health Care Trust Fund. The County is financially accountable for the Plan,
as it obligated to make employer contributions; accordingly, it is included as a fiduciary component unit in
the County's financial statements. Plan provisions are established and may be amended by the Kalamazoo
County Board of Commissioners, subject to the County's various collective bargaining agreements.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. 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 fees
and charges for services. Likewise, the primary government is reported separately from certain component
units for which the primary government is financially accountable.
67
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment
and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 90 days of the end of the current
fiscal period, except taxes which must be collected within 60 days, and expenditure-driven grants which
must be collected within one year. Expenditures generally are 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.
Property taxes, intergovernmental revenue, licenses, and interest associated with the current fiscal period
are all considered to be susceptible to accrual and as such have been recognized as revenues of the current
fiscal period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
The County reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all the financial resources
of the general government, except those accounted for and reported in another fund.
The Law Enforcement Fund accounts for specific revenue derived from a special vote approved millage,
state and federal grants, and charges for services that are to be expended as dictated by legal,
regulatory, or administrative requirements.
68
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The General Grants Fund accounts for various federal, state and local grants not associated with a
specific department or activity, including the Coronavirus State and Local Fiscal Recovery Funds received.
The Capital Projects Fund accounts for renovation/construction projects performed on the County
facilities and for the purchase of capital improvement equipment. These projects are funded primarily
by the General Fund.
The Justice Facility Capital Projects Fund accounts for the construction of the new justice facility.
The County reports the following major enterprise funds:
The Airport Fund accounts for the operation and maintenance of the Kalamazoo/Battle Creek
International Airport. Financing is provided primarily by user charges.
The Delinquent Tax Revolving Fund accounts for money advanced by the County to other local taxing
units and various County funds to pay for their delinquent taxes and fees. Revenues are generated by
the collection of the delinquent taxes and fees.
The Local Government Public Works Financing Fund accounts for revenues received from local
municipalities for the payment of the limited obligation long-term debt (principal, interest and fees) of
the County. The proceeds of such debt are used to fund construction projects, which the local
governments agree to operate and lease over the life of the bonds. The County has entered into
installment sales agreements with the local municipalities and the payments to the County are generally
equal to the debt service requirements of the County's bonds.
Additionally,the County reports the following fund types:
Special revenue funds are used to account for and report the proceeds of specific revenue sources that
are restricted or committed to expenditure for specified purposes other than debt service or capital
projects.
Debt service funds are used to account for and report financial resources that are restricted, committed,
or assigned to expenditure for principal and interest.
Enterprise funds account for those operations that are financed and operated in a manner similar to
private business or where the County has decided that the determination of revenues earned, costs
incurred and/or net income is necessary for management accountability.
Internal service funds account for the employee benefits/programs, technology, document, and facility
activities provided to other departments or funds on a cost reimbursement basis.
Pension and Retiree Health Care Trust Funds account for the activities of the Employees' Retirement
System, a defined-benefit pension plan, and the Retiree Health Care Trust, which accumulates resources
for other postemployment benefit payments to qualified employees.
69
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Custodial funds are used to account for assets that the government holds for others in a custodial
capacity(such as taxes collected for other governments).
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are revenues in excess of expenses for tax collection.
Elimination of the revenues would distort the activity of the functions and would not reflect the proper
future uses of the excesses collected for their specific governmental purposes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
enterprise funds and of the government's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
Restricted assets represent amounts subject to restrictions beyond the government's control. The
restrictions may be externally imposed or imposed by law. When both restricted and unrestricted resources
are available for use, it is the government's policy to use restricted resources first, then unrestricted
resources as they are needed.
Assets,Deferred Outflows of Resources, Liabilities,Deferred Inflows of Resources,and Equity
Deposits and Investments
The government's cash and cash equivalents include amounts in demand deposit accounts, certificates of
deposit and short term investments with original maturities of three months or less from the date of
acquisition. Investments are stated at fair value.
State statutes and County policy authorize the County to invest in:
• Bonds, securities, other obligations and repurchase agreements of the United States, or an agency or
instrumentality of the United States.
• Certificates of deposit, savings accounts, deposit accounts or depository receipts of a qualified financial
institution.
• Commercial paper rated at the time of purchase within the two highest classifications established by not
less than two standard rating services and that matures not more than 270 days after the date of
purchase.
• Bankers' acceptances of United States banks.
• Obligations of the State of Michigan and its political subdivisions, that, at the time of purchase are rated
as investment grade by at least one standard rating service.
70
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
• Mutual funds registered under the Investment Company Act of 1940 with the authority to purchase only
investment vehicles that are legal for direct investment by a public corporation.
• External investment pools as authorized by Public Act 20 as amended through December 31, 1997.
The County pools cash resources of various funds in order to facilitate the management of cash. Cash
applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to
meet current operating requirements. Cash in excess of current requirements is invested in various interest-
bearing securities and disclosed as part of the County's investments.
Receivables and Payables
Transactions between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of
interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). All
other outstanding balances between funds are reported as "due to/from other funds." Any residual
balances outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as "internal balances."
Property taxes receivable in governmental funds represent amounts due from taxpayers on the July 1 and
December 1 tax levies in the General Fund and other governmental funds, respectively. Any amounts
outstanding on the July 1 levy on March 1 (excluding personal property taxes) are purchased by the
Delinquent Tax Revolving enterprise fund through the settlement process.
Property taxes receivable in the Delinquent Tax Revolving enterprise fund represent unpaid balances from
the previous years' levies for the County itself as well as other local taxing authorities in the County's
geographical region. The County is responsible for pursuing and administering collection of these balances
and coordinating the forfeiture and foreclosure activities for the related parcels. This process takes place
over a 3-year period. Interest at 1% per month (increased to 1.5% after 12 months, retroactive to the date
of delinquency) and administrative fees at 4% are accrued in accordance with State statute. No amounts
have been included in an allowance for uncollectible balances, as the structure of the Delinquent Tax
Revolving enterprise fund has been designed to make the fund whole either through the eventual auction of
the foreclosed parcels or through chargebacks to the local taxing authorities initially levying the taxes.
Advances between funds are offset by nonspendable fund balance in applicable governmental funds to
indicate they are not available for appropriation and are not expendable available financial resources.
All trade receivables are shown net of an allowance for uncollectibles, as applicable.
Amounts due from other governments include amounts due from grantors for specific programs and capital
projects. Program grants and capital grants for capital assets are recorded as receivables and revenues at
the time reimbursable project costs are incurred. Amounts received in advance of project costs being
incurred are reported as unearned revenue.
71
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Leases
Lessee. The County is a lessee for a noncancellable lease of a building and improvements. The County
recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide
financial statements. The County recognizes lease liabilities with an initial, individual value of $5,000 or
more.
At the commencement of a lease, the County initially measures the lease liability at the present value of
payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the
principal portion of lease payments made. The lease asset is initially measured as the initial amount of the
lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain
initial direct costs. Subsequently,the lease asset is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the County determines (1) the discount rate it
uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The
County uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by
the lessor is not provided, the County generally uses its estimated incremental borrowing rate as the
discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments
included in the measurement of the lease liability are composed of fixed payments and purchase option
price (if applicable)that the County is reasonably certain to exercise.
The County monitors changes in circumstances that would require a remeasurement of its lease and will
remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the
amount of the lease liability.
Lessor. The County is a lessor for noncancellable leases of land and buildings and improvements. The
County recognizes a lease receivable and a deferred inflow of resources in the government-wide,
governmental fund, proprietary fund and component unit financial statements.
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. Subsequently, the lease receivable is reduced by
the principal portion of lease payments received. The deferred inflow of resources is initially measured as
the initial amount of the lease receivable, adjusted for prepaid lease payments received at lease inception.
Subsequently,the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the County determines (1) the discount rate it uses to discount
the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The County uses its
estimated incremental borrowing rate as the discount rate for leases. The lease term includes the
noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is
composed of fixed payments from the lessee.
The County monitors changes in circumstances that would require a remeasurement of its lease and will
remeasure the lease receivable if certain changes occur that are expected to significantly affect the amount
of the lease receivable.
72
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Restricted Assets
Assets which are restricted for specified uses by bond debt requirements, grant provisions or other external
requirements are classified as restricted assets. Liabilities payable from such restricted assets are separately
classified.
The Airport Fund's restricted receivable is restricted for capital improvements related to passenger facility
charges. The General Grants Fund's restricted investments consist of unspent State and Local Fiscal
Recovery Funds(CSLFRF) received.
Other Assets
Inventories reported in the proprietary funds are valued at the lower of cost or market. Cost is determined
under the first-in,first-out (FIFO) method. The costs of governmental fund type inventories are recorded as
expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs
applicable to future accounting periods and are recorded as prepaid expenditures. Prepaids are accounted
for in governmental funds using the consumption method whereby expenditures are recognized over the
benefitting period.
Capital Assets
Capital assets, which include property, buildings and equipment, are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements. Capital
assets are defined by the government as assets having a useful life in excess of three years and whose costs
exceed $5,000. Capital assets are stated at historical cost or estimated historical cost where actual cost
information is not available. Donated capital assets, donated works of art and similar items, and capital
assets received in a service concession arrangement are recorded at their estimated acquisition value as of
the donation date.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets are capitalized as projects are constructed.
Capital assets are being depreciated using the straight-line method over the following estimated useful
I ives:
Years
Land improvements 20
Infrastructure 5-50
Building and improvements 15-50
Furniture, machinery, and equipment 5-20
Vehicles 5
73
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The County evaluates its capital assets for impairment in accordance with GASB Statement No. 42,
Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. Assets
to be disposed of would be recognized at the lower of carrying value or fair value less the estimated cost of
disposal. Assets held and in use are reviewed for impairment whenever indicators of impairment exist. All
recognized impairment losses, whether for assets to be disposed of or assets to be held and used, are
recorded as operating expenses. No impairments have been identified as of December 31, 2022.
Deferred Outflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/expenditure) until then. The County reports deferred outflows of resources
for the deferred charge on refunding reported in the government-wide statement of net position. A
deferred charge on refunding results from the difference in the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized on a straight-line basis over the shorter of the
life of the refunded or refunding debt. In addition, the County reports deferred outflows of resources
related to its pension and other postemployment benefit plans.
Compensated Absences
County employees are granted vacation and sick leave in varying amounts based on length of service. Upon
termination or retirement, employees are paid for unused vacation and sick leave reduced to the maximum
amount allowed. Vacation and sick pay is accrued when incurred in the government-wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if they have
matured,for example, as a result of employee resignations and retirements.
Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and
discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds
payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed
when incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
74
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Deferred Inflows of Resources
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The governmental funds report unavailable revenues, which
arise only under a modified accrual basis of accounting, from an opioid settlement, property taxes and
special assessments. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available. In addition, deferred inflows of resources are reported in the
government-wide and governmental fund financial statements for property taxes levied during the year that
were intended to finance future periods.The County also reports deferred inflows of resources related to its
pension and other postemployment benefit plans. Finally the statements of net position and governmental
fund balance sheet report deferred inflows related to leases.The amounts are deferred and amortized over
the remaining life of the lease.
Property taxes (excluding those for the General Fund, which are subject to a different timeline) are levied
and attach as an enforceable lien on property on December 1. Property taxes unpaid as of February 28 are
considered to be delinquent. Although the County's 2021 ad valorem tax (excluding the portion for general
operations) is levied and collectible on December 1, 2022, it is the County's policy to recognize revenues
from the December 1 tax levy in the subsequent year when the proceeds of this levy are budgeted and
made available for the financing of the County's operations. Therefore, the entire amount of the
December 1, 2022 levies is reported as deferred inflows of resources at year-end.
Fund Equity
Governmental funds report nonspendable fund balance for amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted
fund balance is reported when externally imposed constraints are placed on the use of resources by
grantors, contributors, or laws or regulations of other governments. Committed fund balance is reported for
amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of
the Board of Commissioners (the government's highest level of decision-making authority). A formal
resolution of the Board of Commissioners is required to establish, modify, or rescind a fund balance
commitment. The County reports assigned fund balance for amounts that are constrained by the
government's intent to be used for specific purposes, but are neither restricted nor committed. The Board
of Commissioners has the authority to assign fund balance and has not delegated this authority.
Unassigned fund balance is the residual classification for the General Fund and includes all amounts not
contained in the other classifications. Other governmental funds besides the General Fund can only report a
negative unassigned fund balance, which would occur if expenditures were to be incurred for specific
purposes that exceeded the amounts restricted, committed or assigned in the fund.
75
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
In connection with Michigan Public Act 30 of 1978, the County Board of Commissioners has formally
established a budget stabilization arrangement, under which a portion of the balance may be utilized during
the budget process to prevent a reduction in the level of public service provided, or prevent a reduction in
the number of employees providing these services. It can also be used due to a natural disaster. The use of
these funds requires a 2/3 majority vote of County Board members. Per budget policy, the release of these
funds must accompany a pay-back plan. In addition, per the Public Act, the amount of money in the fund
shall not exceed 20% of the most recent General Fund budget or the average of the last five adjusted
budgets, whichever is less. As of December 31, 2022, the balance in the stabilization arrangement was
$2,504,073 which is reported in the General Fund within restricted fund balance.
The County Board of Commissioners has adopted a minimum fund balance policy in which the uncommitted
fund balance of the General Fund will be 20 to 25% of general operating revenues. Any amounts over the
20%threshold shall be limited to non-operational expenditures.
When the government incurs an expenditure for purposes for which various fund balance classifications can
be used, it is the government's policy to use restricted fund balance first, then committed fund balance,
assigned fund balance, and finally unassigned fund balance.
Interfund Transactions
During the course of normal operations, the County has numerous transactions between funds and
component units, including expenditures and transfers of resources to provide services, construct assets,
and service debt. The accompanying financial statements generally reflect such transactions as transfers.
Transfers between governmental or proprietary funds are netted as part of the reconciliation to the
government-wide financial statements. Internal service funds are used to record charges for services to all
County departments and funds as transfers or operating revenue. All County funds record these payments
to the internal service funds as transfers or operating expenditures/expenses.
Capital Contributions
Certain expenses for airport capital improvements are significantly funded through the Airport
Improvement Program of the Federal Aviation Administration, with certain matching funds provided by the
Aeronautics Department and the State of Michigan. Capital funding provided under government grants is
considered earned as the related allowable expenditures are incurred and reimbursement has been
requested. Grants for capital assets acquisition,facilities development and rehabilitation are reported in the
statement of revenues, expenses and changes in fund net position, after nonoperating revenues and
expenses as capital contributions.
76
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Pension Plan
For purposes of ineasuring the net pension asset, deferred outflows of resources and deferred inflows of
resources related to pensions, and pension expense, information about the fiduciary net position of the
plan and additions to/deductions from the plan fiduciary net position have been determined on the same
basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
Other Postemployment Benefit Plan
For purposes of ineasuring the net other postemployment benefit liability, deferred outflows of resources
and deferred inflows of resources related to other postemployment benefit plans, and other
postemployment benefit expense, information about the fiduciary net position of the plan and additions
to/deductions from the plan fiduciary net position have been determined on the same basis as they are
reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
Use of 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 the
amounts reported in the financial statements and accompanying notes. Actual results may differ from
those estimates. The County utilizes various investment instruments which are exposed to various risks,
such as interest rate, credit and overall market volatility. Due to the level of risk associated with certain
investment securities, it is reasonably possible that changes in the values of investment securities will occur
in the near term and that such changes could materially affect the amounts reported in the financial
statements.
Grants and Third Party Cost Reimbursement Settlements
The County receives grants from other governmental units to finance specific programs.The grant revenues
are recorded based on qualifying program expenditures, as determined by the County, and are subject to
audit by the responsible agencies. Adjustments required upon final settlements are recorded in the period
of settlement. Third party cost reimbursements are recorded at prospective rates and provisions are made
at the end of each year to adjust such revenues to the reimbursable cost expected to be received.
Adjustments required upon final settlements are recorded in the period of settlement.
Budgets
Budgets presented in the financial statements were prepared on the same basis as the accounting basis
used to reflect actual results. The General Fund and special revenue funds are subject to legal budgetary
accounting controls and all are budgeted annually. Debt service and capital project funds are also included
in the budgetary process; however, state statutes do not require legally adopted budgets for such funds.
77
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
2. EXCESS OF EXPENDITURES OVER BUDGET
P.A. 621 of 1978, as amended, provides that a local unit shall not incur expenditures in excess of the
amount budgeted.The approved budgets of the County were adopted on the department (activity) level for
the General Fund and at the fund level basis for all other governmental funds, which is the legal level of
control.
During the year ended December 31, 2022, the County incurred expenditures in certain budgetary funds
which were in excess of the amounts budgeted, as follows:
Actual Over
Final Budget Actual Final Budget
General fund:
General government-County clerk $ 417,500 $ 575,434 $ 157,934
General government-Treasurer 1,045,200 1,052,339 7,139
Debt service- principal - leases - 287,021 287,021
Debt service- interest and fiscal charges - 12,980 12,980
Nonmajor governmental funds:
Law Library 76,300 77,985 1,685
Indigent Defense 4,800,800 5,959,023 1,158,223
3. DEPOSITS AND INVESTMENTS
Following is a reconciliation of deposit and investment balances as of December 31, 2022:
Primary Component Fiduciary
Government Units Funds Totals
Statement of Net Position
Cash and cash equivalents $ 41,678,702 $ 32,484,153 $ - $ 74,162,855
Restricted cash 4,142,175 38,591,150 - 42,733,325
Investments 111,523,027 989,409 - 112,512,436
Restricted investments 42,878,841 - - 42,878,841
Statement of Fiduciary Net Position
Cash and cash equivalents - - 11,526,567 11,526,567
Investments - - 255,583,810 255,583,810
Total deposits and investments 200,222,745 72,064,712 267,110,377 539,397,834
Less component units separately audited and
not held by the County Treasurer
Central County Transportation
Authority - (9,145,943) - (9,145,943)
Road Commission - (50,023,862) - (50,023,862)
Land Bank Authority - (2,419,229) - (2,419,229)
Public Housing Commission - (1,504,622) - (1,504,622)
Total $ 200,222,745 $ 8,971,056 $ 267,110,377 $ 476,304,178
78
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Deposits and investments
Bank deposits:
Checking and savings accounts $ 53,257,823
Certificates of deposit:
Due within one year 21,964,702
Due in one to five years 1,465,513
Due in six to ten years 1,990,500
Investments:
County 142,029,556
Retiree Health Care Trust Fund 27,859,872
Pension Trust Fund 227,723,938
Cash on hand 12,274
Total $ 476,304,178
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that, in the event of a bank failure, the
County's deposits might not be returned. The County does not have a policy for mitigating custodial credit
risk over deposits. As of year-end, $74,898,623 of the County's bank balance of $79,919,822 was exposed
to custodial credit risk because it was uninsured and uncollateralized. Due to the dollar amounts of cash
deposits and the limits of FDIC insurance,the County believes it is impractical to insure all bank deposits. As
a result, the County evaluates each financial institution with which it deposits County funds and assesses
the level of risk of each institution; only those institutions with an acceptable estimated risk level are used
as depositories.
Custodial Credit Risk - Investments. For an investment, custodial credit risk is the risk that, in the event of
the failure of the counterparty, the County will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. Although uninsured and unregistered,
the County's investments are not exposed to custodial credit risk since the securities are held by the
counterparty's trust department or agent in the County's name. Short-term investments in money market
funds and equity mutual funds are not exposed to custodial credit risk because their existence is not
evidenced by securities that exist in physical or book form. As of December 31, 2022, the County had no
investments exposed to custodial credit risk.
In addition, the Pension and Retiree Health Care Trust funds will only conduct business with investment
management firms that will: comply with all relevant provisions contained in Act 485 of the Public Acts of
1996 as amended (Michigan Compiled Laws 38.1132 et seq.); support the overall investment policies of the
System; understand and accept their designated "role" within the System's investment structure; construct
a portfolio of securities that reflect the execution of their assigned investment strategy; and adhere to the
guidelines the investment policy statement (as amended). The following criteria are used to evaluate each
investment manager's performance: a) achievement of fund objectives as outlined in the investment policy;
b) comparisons with other managers, indexes, etc.; c) subjective observations regarding the manager's
organization, professionalism, administrative skills, etc.; and d) biannual due diligence meetings.
79
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The County's investments are held in a number of portfolios administered by various investment managers.
Following is a summary of the County's investments at fair value, as determined by quoted market price:
Retiree Health Pension Trust
County Care Trust Fund Fund
U.S. government securities $ 27,732,331 $ 2,097,988 $ 17,148,757
U.S. agency securities 5,758,890 2,019,544 16,507,559
Corporate obligations - 2,417,235 19,758,245
Municipal bonds 961,684 4,654 38,043
Foreign corporate obligations - 301,249 2,462,382
Mortgage-backed funds 2,687,347 293,336 2,397,702
Domestic equity mutual funds/collective trust funds 88,549,304 13,450,917 109,946,516
MILAF- Michigan Term Series 16,340,000 - -
Emerging market mutual funds - 2,744,642 22,434,443
International equity mutual funds - 2,850,622 23,300,713
Real estate investment trust - 664,350 5,430,330
Real estate pooled separate account - 1,015,335 8,299,248
Total investments $ 142,029,556 $ 27,859,872 $ 227,723,938
Credit Risk. Statutes and various bond indentures authorized the County to invest in obligations of the U.S.
Treasury, governmental agencies and instrumentalities, commercial paper rated at the time of purchase
within the two highest classifications established by not less than two standard rating services, bankers'
acceptances of U.S. banks, U.S. government or federal agency obligation repurchase agreements,
obligations of the State of Michigan or any of its political subdivisions rated as investment grade by not less
than one standard rating service, and mutual funds composed of the types of investment vehicles named
previously.
For the Pension and Retiree Health Care Trust funds, credit risk is the risk that an issuer or other
counterparty to an investment will not fulfill its obligations. The investment policy limits commercial paper
to be those at the time of purchase are within the two highest classifications established by not less than
two national rating services as determined by the State Treasurer of Michigan. These also must mature no
more than 270 days after date of issue. The investment policy requires the average fixed income portfolio
quality rating to be an "A" or better. All bonds owned should be rated "BBB" or better by Standard & Poor's
or an equivalent rating agency as determined by the State Treasurer of Michigan with the following
exception: when bond ratings have dropped below "BBB" after purchase, and when the investment
manager deems it economically beneficial,the manager may retain ownership.
80
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The County's investments were rated as follows:
Retiree Health Pension Trust
County Care Trust Fund Fund
Standard & Poor's AAA $ 1,884,695 $ 2,500,911 $ 20,442,205
Standard & Poor's AA+ 34,293,873 19,020 155,467
Standard & Poor's AA 351,807 15,934 130,243
Standard & Poor's AA- - 118,281 966,821
Standard & Poor's A+ - 68,765 562,078
Standard & Poor's A - 118,200 966,152
Standard & Poor's A- - 651,898 5,328,555
Standard & Poor's BBB+ - 707,522 5,783,213
Standard & Poor's BBB - 276,411 2,259,356
Standard & Poor's BBB- - 112,447 919,129
Moody's Aaa - 2,544,617 20,799,469
Moody's AAAm 88,549,304 - -
Moody's Aa1 609,877 - -
Fitch AAAf 16,340,000 - -
Unrated - 1,015,335 8,299,248
Not subject to credit risk - 19,710,531 161,112,002
Total investments $ 142,029,556 $ 27,859,872 $ 227,723,938
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair
market value of an investment. The County's policy provides for its fixed income portfolio to have a
weighted-average duration within 0.05 years of the Lehman Brothers Government/Credit Intermediate
Index and the Lehman Brothers Government/Credit Long Index. Maturities of the County's investments
were as follows:
Retiree Health Pension Trust
County Care Trust Fund Fund
Less than 1 year $ 29,395,406 $ 42,599 $ 348,204
1-5 years 22,833,414 2,411,942 19,714,982
6- 10 years 280,486 1,116,073 9,122,677
More than 10 years 970,946 3,563,392 29,126,825
No maturity 88,549,304 20,725,866 169,411,250
Total $ 142,029,556 $ 27,859,872 $ 227,723,938
81
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of
the County's investment in a single issuer. The State generally limits investments in a single issuer to no
more than 5%of the total portfolio assets,with the exception of obligations issued, assumed, or guaranteed
by the United States. To minimize concentration of credit risk and increase portfolio diversification, the
County places the following additional limits to investments:
• 70% of the portfolio will be invested in common stock with the balance invested in notes, bonds, equity
real estate, and short-term securities.
• No more than 5%of portfolio assets at market value will be invested in equity real estate.
The investment portfolio was concentrated as follows:
Percentage of Portfolio
Retiree Health Pension Trust
Investment Type Issuer Care Trust Fund Fund
Collective trust funds Blackrock Fund 28.9% 28.9%
International equity mutual funds Dimensional 10.2% 10.2%
Emerging market mutual fund Dimensional 9.9% 9.9%
Domestic equity mutual fund -small cap Dimensional 9.8% 9.8%
Foreign Currency Risk. Foreign currency risk is the risk that changes in exchange rates will adversely affect
the fair value of an investment or deposit. The State permits investments in investment grade, dollar
denominated obligations issued in the United States by foreign governments, banks, or corporations.
Investments in foreign securities are limited to not exceed more than 20%of the County's holdings. It is the
County's policy to not purchase foreign investments except those listed in the United States.
Retiree Health Pension Trust
Investment(currency in U.S.dollars) Care Trust Fund Fund
Foreign corporate obligations $ 301,249 $ 2,462,382
Emerging market mutual funds 2,744,642 22,434,443
International equity mutual funds 2,850,622 23,300,713
Total $ 5,896,513 $ 48,197,538
82
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Fair Value Measurement. The County categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles.The hierarchy is based on the valuation inputs used
to measure the fair value of the asset, as determined by the investment advisors. Level 1 inputs are quoted
prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level
3 inputs are significant unobservable inputs. These levels are determined by the County's investment
manager, and are determined at the fund level based on a review of the investment's class, structure, and
what kind of securities are held in the funds.The investment manager will request the information from the
fund manager, if necessary. The County had the following recurring fair value measurements as of
December 31, 2022:
Levell Level2 Level3 Total
U.S.government securities $ - $ 46,979,076 $ - $ 46,979,076
U.S. agency securities - 24,285,993 - 24,285,993
Corporate obligations - 22,175,480 - 22,175,480
Municipal bonds - 1,004,381 - 1,004,381
Foreign corporate obligations - 2,763,631 - 2,763,631
Mortgage-backed funds - 5,378,385 - 5,378,385
Domestic equity mutual funds/
collective trust funds 123,397,433 - - 123,397,433
Emerging market mutual funds 25,179,085 - - 25,179,085
International equity mutual funds 26,151,335 - - 26,151,335
Real estate investment trust 6,094,680 - - 6,094,680
Real estate pooled
separate account - 9,314,583 - 9,314,583
$ 180,822,533 $ 111,901,529 $ - 292,724,062
Investments at net asset value per share- Michigan CLASS& MILAF 104,889,304
Total investments $ 397,613,366
The fair value of the County's Level 1 investments is based on quotes from publicly traded securities
markets, where available. The fair value of the County's Level 2 investments is determined primarily by a
matrix pricing technique, which is used to value securities based on their relationship to benchmark quoted
prices. Due to the inherent uncertainty of determining the fair value of investments that are not publicly
traded, the fair value reported for these investments may differ significantly from the values that would
have been used had a publicly traded market existed for such investments.
The County holds shares in Michigan CLASS whereby the fair value of the investment is measured on a
recurring basis using net asset value per share (or its equivalent) of the investment pool as a practical
expedient.
83
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
At year end, the net asset value of the County's investment in Michigan CLASS government investment pool
was $88,549,304. The investment pool had no unfunded commitments, specific redemption frequency or
redemption notice period required. The Michigan CLASS government investment pool invests in U.S.
treasury obligations,federal agency obligations of the U.S.government, high-grade commercial paper(rated
`A-1' or better) collateralized bank deposits, repurchase agreements (collateralized at 102% by Treasuries
and agencies), and approved money-market funds. The program seeks to provide safety, liquidity,
convenience, and competitive rates of return, and is designed to meet the needs of Michigan public sector
investors. It purchases securities that are legally permissible under state statutes and are available for
investment by Michigan counties, cities,townships, school districts, authorities and other public agencies.
In addition,the County holds shares in the Michigan Liquid Asset Fund (MILAF)Term Series whereby the fair
value of the investment is measured on a recurring basis using net asset value per share (or its equivalent)
of the investment pool as a practical expedient.
At year end, the net asset value of the County's investment in the MILAF Term Series was $16,340,000. The
investment pool had no unfunded commitments and requires a minimum investment of$100,000.
The MILAF Term Series provides a fixed rate, fixed-term investment with a minimum maturity of 60 days
and a maximum maturity of one year. The pool allows the County to set a specific redemption date upon
initiation of the investment. Early redemptions are permitted; however, an early redemption fee would
apply.The investment pool includes investments which the County does not control.
The investment pool invests primarily in high quality money market instruments, including certificate of
deposits, commercial paper, and U.S. government and agency obligations, to protect the investment
principal and provide liquidity.
4. RECEIVABLES
Receivables of the primary government are comprised of the following at year-end:
Governmental Business-type
Activities Activities
Accounts $ 8,484,679 $ 801,183
Taxes (current) 32,960,152 -
Taxes (delinquent) 83,737 7,089,437
Due from other governments 5,492,424 3,950,019
Leases 213,098 959,209
Installment sales agreements - 57,509,215
Accrued interest 186,224 -
Total receivables $ 47,420,314 $ 70,309,063
The Airport enterprise fund reported restricted receivables of $46,628. The Airport Fund's restricted
receivable is restricted for capital improvements related to passenger facility charges.
84
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Of the amounts reported for receivables above, accounts receivable of $4,284,577, installment sales
agreements receivable of$57,003,778 and leases receivable of$1,076,407 are not expected to be collected
within one year.
Housing Rehabilitation Loan Receivable. The County has used grant funding provided through the Michigan
Economic Development Corporation (MEDC) to finance housing rehabilitation projects for qualified
homeowners. Such assistance was provided in the form of a deferred loan receivable, due and payable upon
sale or foreclosure of the related property. Management has estimated the amount of such loans
outstanding at year-end may approximate $810,000, but has determined that the collectible portion (if any)
would be immaterial, and would further be due to MEDC upon collection. Accordingly, the County has
recorded an allowance for the entire receivable to reflect this determination.
5. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities of the primary government are comprised of the following at year-
end:
Governmental Business-type
Activities Activities
Accounts payable $ 14,573,573 $ 1,024,934
Accrued liabilities 3,024,490 76,501
Undistributed receipts - 1,904,305
Claims payable 2,839,007 -
Due to other governments 524,750 -
Deposits payable 321,733 42,047
Accrued interest on long-term debt 486,116 401,186
Total $ 21,769,669 $ 3,448,973
85
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
6. INTERFUND RECEIVABLES AND PAYABLES AND TRANSFERS
An internal balance existed between governmental activities and business-type activities in the amount of
$112,387. This resulted from the allocation of a portion of internal service fund net position of
governmental-type internal service funds to business-type activities.
Advances to and from component units
Advances to Advances from
Component Primary
Units Government
General Fund $ 306,481 $ -
Drainage Districts - 306,481
Total $ 306,481 $ 306,481
These balances resulted from the time lag between the dates that (1) interfund goods and services are
provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and
(3) payments between funds are made.
86
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
For the year ended December 31,2022,interfund transfers consisted of the following:
Transfers In
Local
Nonmajor Government
Governmental Governmental Public Works Internal Service
Transfers Out General Capital Projects Funds Activities Financing Funds Totals
General $ - $14,295,670 $ 10,469,502 $ - $ 1,811,063 $ 868,323 $27,444,558
Law Enforcement - 1,668,799 220,000 - - - 1,888,799
Nonmajor governmental
funds 105,852 - 3,193,445 - - - 3,299,297
Internal service funds - 3,979,167 - 735,017 - - 4,714,184
Delinquent Tax
Revolving 1,500,000 - - - - - 1,500,000
Total $ 1,605,852 $ 19,943,636 $ 13,882,947 $ 735,017 $ 1,811,063 $ 868,323 $ 38,846,838
Transfers are used to:(1)move revenues from the fund that is required to collect them to the fund that is required or allowed to expend
them;(2) move receipts restricted to or allowed for debt service from the funds collecting the receipts to the debt service fund as debt
service payments become due;and(3)use unrestricted revenues collected in the general fund to finance various programs accounted for
in other funds in accordance with budgetary authorizations.
The current year transfer from the General fund to the Capital Projects fund is related to CIP projects, building&grounds maintenance
costs, technology projects, and funding for future capital projects. The current year transfers from the General fund to nonmajor
governmental funds related to County support for various grant programs,the law library,the FOC fund,the Health fund,and the Child
Care fund. The current year transfer from the internal service fund to governmental activities and the Capital Project fund was for capital
assets and prepaids that were transferred between the two funds.
g7
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
7. CAPITAL ASSETS
Primary�overnment
Capital asset activity for the primary government for the year ended December 31, 2022,was as follows:
Beginning Ending
Balance* Additions Disposals Transfers Balance
Governmental Activities
Capital assets, not being depreciated:
Land $ 5,050,097 $ 1,171,050 $ - $ - $ 6,221,147
Construction in progress 22,587,753 37,855,350 - - 60,443,103
Intangible easements 147,493 - - - 147,493
27,785,343 39,026,400 - - 66,811,743
Capital assets, being depreciated/amortized:
Land improvements 16,268,109 - - - 16,268,109
Buildings and improvements 112,967,559 13,887,811 - - 126,855,370
Furniture, machinery, and
equipment 13,528,663 261,170 (122,346) - 13,667,487
Vehicles 5,940,657 575,652 (383,281) - 6,133,028
Law library books 410,688 - - - 410,688
Leased building and
improvements(Note 9) 432,652 - - - 432,652
149,548,328 14,724,633 (505,627) - 163,767,334
Less accumulated depreciation/amortization for:
Land improvements (9,967,468) (665,854) - - (10,633,322)
Buildings and improvements (43,892,486) (2,645,985) - - (46,538,471)
Furniture, machinery, and
equipment (10,714,600) (834,465) 122,346 - (11,426,719)
Vehicles (4,866,049) (462,285) 383,281 - (4,945,053)
Law library books (409,100) (1,059) - - (410,159)
Leased building and
improvements(Note 9) - (216,326) - - (216,326)
(69,849,703) (4,825,974) 505,627 - (74,170,050)
Total capital assets
being depreciated/
amortized, net 79,698,625 9,898,659 - - 89,597,284
Governmental activities
capital assets, net $ 107,483,968 $ 48,925,059 $ - $ - $ 156,409,027
88
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
At December 31, 2022, the County's governmental activities had outstanding commitments through
construction contracts of approximately$1.5 million.
*The County implemented the provisions of GASB Statement No. 87, Leases, in the current year. In
accordance with this Statement, leased assets have been added to the beginning balances shown above and
a corresponding lease payable has been recorded for the same amount.
Beginning Ending
Balance Additions Disposals Transfers Balance
Business-type Activities
Capital assets, not being depreciated:
Land $ 5,323,562 $ - $ - $ - $ 5,323,562
Construction in progress 10,057,934 3,595,948 - (3,738,052) 9,915,830
15,381,496 3,595,948 - (3,738,052) 15,239,392
Capital assets, being depreciated:
Land improvements 50,250,766 - - 2,778,057 53,028,823
Buildings and improvements 35,063,236 - - 38,838 35,102,074
Vehicles 3,947,250 - - 728,327 4,675,577
Furniture, machinery, and
equipment 7,107,087 - - 192,830 7,299,917
96,368,339 - - 3,738,052 100,106,391
Less accumulated depreciation for:
Land improvements (40,600,884) (1,353,369) - - (41,954,253)
Buildings and improvements (11,189,805) (833,233) - - (12,023,038)
Vehicles (3,843,139) (86,093) - - (3,929,232)
Furniture, machinery, and
equipment (6,945,809) (35,525) - - (6,981,334)
(62,579,637) (2,308,220) - - (64,887,857)
Total capital assets
being depreciated, net 33,788,702 (2,308,220) - 3,738,052 35,218,534
Business-type activities
capital assets, net $ 49,170,198 $ 1,287,728 $ - $ - $ 50,457,926
At December 31, 2022, the County's business-type activities had outstanding commitments through
construction contracts of approximately$18,000.
89
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Depreciation/amortization expense was charged to functions/programs of the primary government as
follows:
Depreciation/amortization of governmental activities by function
General government $ 596,174
Public safety 1,489,824
Health and welfare 952,288
Cultural and recreation 719,377
Judicial 947,925
Internal service funds 120,386
Total $ 4,825,974
Depreciation of business-type activities by function
Airport $ 2,308,220
Discretely presented component units
Capital assets activity for the Drainage District component unit for the year ended December 31, 2022,
consists of the following:
Beginning Ending
Balance Additions Disposals Transfers Balance
Component Unit- Drainage District
Capital assets, not being depreciated:
Construction in progress $ - $ 98,912 $ - $ - $ 98,912
Capital assets, being depreciated:
Infrastructure 11,200,221 - - - 11,200,221
Less accumulated depreciation for:
Infrastructure (5,380,494) (170,273) - - (5,550,767)
Total capital assets
being depreciated, net 5,819,727 (170,273) - - 5,649,454
Drainage District
capital assets, net $ 5,819,727 $ (71,361) $ - $ - $ 5,748,366
90
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Capital assets activity for the Lake Level component unit for the year ended December 31, 2022, consists of
the following:
Beginning Ending
Balance Additions Disposals Transfers Balance
Component Unit-Lake Level
Capital assets, not being depreciated:
Construction in progress $ - $ 340,985 $ - $ - $ 340,985
8. BONDS, NOTES AND OTHER LONG-TERM LIABILITIES
Bond, notes and other long-term liabilities activity for the year ended December 31, 2022,was as follows:
Beginning Ending Due Within
Balance* Additions Deductions Balance One Year
Governmental activities
General obligation bonds $ 88,455,000 $ - $ (1,290,000) $ 87,165,000 $ 2,985,000
Lease payable (Note 9) 432,652 - (287,021) 145,631 145,631
Net bond premium/discount 4,873,945 - (297,027) 4,576,918 297,026
Compensated absences 4,902,727 3,575,520 (3,700,590) 4,777,657 3,698,176
Total governmental activities $ 98,664,324 $ 3,575,520 $ (5,574,638) $ 96,665,206 $ 7,125,833
Business-type activities
General obligation bonds $ 6,570,000 $ 55,235,000 $ (6,435,000) $ 55,370,000 $ 45,000
Net bond premium/discount 280,069 1,762,717 (304,757) 1,738,029 59,251
Compensated absences 103,174 98,167 (67,273) 134,068 67,273
Total business-type
activities $ 6,953,243 $ 57,095,884 $ (6,807,030) $ 57,242,097 $ 171,524
* The County implemented the provisions of GASB Statement No. 87, Leases, in the current year. In
accordance with this Statement, leases payable have been added to the beginning balances shown above
and a corresponding lease asset has been recorded for the same amount.
91
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Discretely presented component units
erownfield Redevelopment Authority
Direct borrowings/
placements-
Loans payable $ 1,344,173 $ - $ - $ 1,344,173 $ 10,000
Drainage Districts
Direct borrowings/
placements-
Notes payable $ 1,700,508 $ - $ (319,293) $ 1,381,215 $ 326,899
Lake Level Districts
Direct borrowings/
placements-
Notes payable $ 400,000 $ 400,000 $ (400,000) $ 400,000 $ 400,000
Governmental activities
$19,390,000 2017 Juvenile Home Facilities Refunding Bonds, due in annual installments of
$850,000 to$1,875,000 plus interest ranging from 4.00 to 5.00%, payable semi-annually,
through April 1, 2032. $ 14,570,000
$3,000,000 2011 Expo Center Improvement Bonds, due in annual installments of
$75,000 to$125,000 plus interest of 3.20%, payable semi-annually,
through April 1, 2026. 845,000
$71,750,000 2021 Justice Facility Limited Tax General Obligation Bonds due in
annual installments of$1,645,000 to$3,390,000 plus interest ranging from
2.00 to 3.00%, payable semi-annually,through April 1, 2051. 71,750,000
Total governmental activities $ 87,165,000
$750,000 2025 Village of Augusta Water Supply, due in annual installments of
$15,000 to$45,000 plus interest at 2.125%, payable semi-annually,
through April 1, 2025. $ 135,000
$55,235,000 2022 Road Commission Limited Tax General Obligation Bonds,
due in annual installments of$945,000 to$3,2100,000 plus interest ranging
from 4.00 to 5.00%, payable semi-annually,through May 1, 2052. 55,235,000
Total business-type activities $ 55,370,000
92
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Discretely presented component units
Brownfield Redevelopment Authority
$150,000 2015 Eliza Street,Schoolcraft Project loan payable due in annual installments of
$14,015 to$16,025 plus interest at 1.50%, payable annually beginning in 2023,through
September 14, 2038. $ 150,000
$1,194,173 2018 Paper City Development loan payable due in annual installments of
$100,661 to$116,822 plus interest at 1.50%, payable annually beginning in 2024,
through December 5, 2034. 1,194,173
Total erownfield RedevelopmentAuthority component unit $ 1,344,173
Drainage Districts
$825,000 2017 Lexington Green Drain note payable, due in annual installments of
$90,520 to$113,527, plus interest of 2.71%,through July 1, 2025. $ 331,539
$380,000 2018 Townline-Galesburg Drain note payable, due in annual installments of
$33,021 to$43,319, plus interest of 2.99%,through July 1, 2028. 241,964
$70,000 2019 Reinbold Drain note payable, due in annual installments of
$17,137 to$17,927, plus interest of 2.25%,through July 1, 2023. 17,969
$150,000 2019 Texas Heights Drain note payable, due in annual installments of
$36,378 to$38,683, plus interest of 2.12%,through July 1, 2023. 38,767
$586,000 2020 East Corp Drain note payable, due in annual installments of
$69,290 to$78,272, plus interest of 2.00%,through July 1, 2028. 447,177
$300,000 2020 Vineyards Drain note payable, due in annual installments of
$33,298 to$40,621, plus interest of 2.19%,through July 1, 2028. 231,033
$90,500 2021 Eagle Lakes Drain note payable, due in annual
installments of$17,734 to$18,496 plus interest of 1.10%through July 1, 2026. 72,766
Total Drainage Districts component unit $ 1,381,215
Lake Level Districts
$400,000 2022 Crooked and Eagle Lakes note payable, due in annual installments of
$400,000 plus interest of 2.22%,through August 1, 2023. $ 400,000
93
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Annual debt service requirements to maturity for long-term debt are as follows:
Governmental Activities Business-type Activities
YearEnded
December 31, Principal Interest Principal Interest
2023 $ 2,985,000 $ 2,493,932 $ 45,000 $ 2,405,209
2024 3,090,000 2,379,719 990,000 2,380,628
2025 3,200,000 2,261,246 1,035,000 2,331,339
2026 3,220,000 2,137,510 1,040,000 2,280,069
2027 3,245,000 2,013,538 1,090,000 2,226,819
2028-2032 18,580,000 8,016,638 6,335,000 10,236,969
2033-2037 11,795,000 5,368,113 8,060,000 8,478,819
2038-2042 13,245,000 3,916,725 9,915,000 6,611,344
2043-2047 14,735,000 2,430,681 12,070,000 4,413,516
2048-2052 13,070,000 659,562 14,790,000 1,624,138
Totals $ 87,165,000 $ 31,677,664 $ 55,370,000 $ 42,988,850
Discretely Presented Component Units
Direct Borrowings/Placements
Brownfield Redevelopment
Authority Drainage Districts
Year Ended
December 31, Principal Interest Principal Interest
2023 $ 10,000 $ - $ 326,899 $ 32,366
2024 126,472 350 276,609 24,681
2025 110,335 16,486 283,116 18,038
2026 111,869 14,952 173,437 11,248
2027 113,427 13,395 158,535 7,448
2028-2032 591,304 42,804 162,619 3,772
2033-2037 278,084 5,561 - -
2038 2,682 7 - -
Totals $ 1,344,173 $ 93,555 $ 1,381,215 $ 97,553
The County has entered into agreements to lease certain facilities acquired and constructed by the
Kalamazoo County Building Authority. The agreements are, in substance, lease purchases. Upon
termination of the lease agreements,titles to the facilities and equipment will pass to the County.
The County has debt that is being repaid by special assessments. This debt is the responsibility of the local
unit using the special assessment. If the local unit defaults on the debt, it is the County's responsibility.
The full faith, credit, and resources of the County have been pledged for the prompt payment of all long-
term debt requirements.
94
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The local government public works financing bonds were issued by the County pursuant to contracts
entered into with the Village of Augusta for financing additional sewage collection and disposal and water
supply systems for the contractees. Additionally, the County financed bonds for Integrated Services of
Kalamazoo and Kalamazoo County Road Commission used for construction of facilities. Under the terms of
the agreements, the contractees are to pay the County each year amounts sufficient to provide for debt
service. For certain of the above debt issuances and as described in the individual agreements, the full faith
and credit of the County and that of the respective participating municipalities are pledged for repayment of
the bonds.
There are a number of limitations and restrictions contained in the various debt issues. At December 31,
2022,the County complied with all significant limitations and restrictions.
The compensated absence liability attributable to the governmental activities will be liquidated by the
County's General, Law Enforcement, Alcott Facility, Parks, Friend of the Court, Health, Child Care, Public
Safety Special Grants and HSD Pooled Costs funds.
9. LEASES
Lessee- The County is involved in one agreement as a lessee that qualifies as a long-term lease agreement.
Below is a summary of the nature of this agreement. This agreement qualifies as an intangible, right-to-use
asset and not a financed purchase, as the County will not own the asset at the end of the contract term and
the noncancelable term of the agreement surpasses one year.
The right-to-use-assets and the related activity are included in Note 7, Capital Assets. The lease liability and
related activity are presented in Note 8, Bonds, Notes and Other Long-term Liabilities.
Remaining Term
of Agreement
Asset Type
Building and improvements 1 year
The assets acquired through the lease are summarized as follows:
Building and improvements $ 432,652
Less accumulated amortization (216,326)
Net book value $ 216,326
95
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The net present value of future minimum payments as of December 31, 2022 were as follows:
YearEnded
December 31, Principal Interest
2023 $ 145,631 $ 4,369
Lessor-The County is involved in agreements as a lessor that qualify as long-term lease agreements. Below
is a summary of these agreements. These agreements qualify as long-term lease agreements as the County
will not surrender control of the assets at the end of the term and the noncancelable term of the
agreements surpasses one year.Total lease revenue for the year ended December 31, 2022 was$126,209.
Remaining Term
of Agreements
AssetType
Land 36 years
Buildings and improvements 4-12 years
Lease receivable activity for the year ended December 31, 2022,was as follows:
Beginning Ending
Balance Additions Deductions Balance
Governmental activities
Leases receivable $ 292,937 $ - $ (79,839) $ 213,098
Business-type activities
Leases receivable $ 1,005,579 $ - $ (46,370) $ 959,209
Regulated lease agreements - In accordance with GASB No. 87, the Airport does not recognize a lease
receivable and a deferred inflow of resources for regulated leases. Regulated leases are certain leases that
are subject to external laws, regulations, or legal rulings, e.g.the U.S. Department of Transportation and the
Federal Aviation Administration, regulated aviation leases between airports and aeronautical users. The
leasing operations of the Airport consist principally of the leasing of land, hangars, and office space. The
Airport has eight lease agreements that consist of noncancelable agreements and permit the Airport to
periodically adjust rents and maximize operational flexibility. Leased land and building and improvements
are leased on an exclusive basis.
Remaining Term
of Agreements
AssetType
Land 2-16 years
Buildings and improvements 10 years
96
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The net present value of future minimum payments as of December 31, 2022 were as follows:
YearEnded
December 31, Amount
2023 $ 45,560
2024 40,563
2025 37,400
2026 31,808
2027 30,689
2028-2032 143,557
2033-2037 53,871
2038-2039 8,051
$ 391,499
The Airport recognized $47,322 of rental income for the year ended December 31, 2022.
10. BENEFIT PLANS
Kalamazoo County Employees'Retirement System("System"J
The County participates in the Kalamazoo County Employees' Retirement System (the "System"), a cost-
sharing multiple-employer defined benefit pension plan, which provides retirement and disability benefits
to eligible plan members and beneficiaries. The System was established by the County of Kalamazoo Board
of Commissioners and is administered by the Office of Finance of the County of Kalamazoo, Michigan.
Accordingly, it is included as a fiduciary component unit in the County's annual comprehensive financial
report.The County of Kalamazoo, Michigan (the "County"), Kalamazoo County Road Commission (the "Road
Commission", a discretely presented component unit of the County), and Integrated Services of Kalamazoo
("ISK"), are participating employers of the System and are required to contribute to the System under state
of Michigan statutes. Employees of participating employers holding regular positions, either full-time or
part-time of 20 hours or more per week, are included by law in the System. Employees of the Sheriff's
Deputy Association, Sheriff's Supervisory Association, certain District Court employees, and Judges elected
or appointed after March 31, 1997, are excluded from the plan pursuant to past negotiations.
The System is controlled by laws established by the State of Michigan. Any changes to the plan document
must be approved by the County of Kalamazoo Board of Commissioners and subsequently implemented by
the County of Kalamazoo Office of Finance.The System provides retirement, disability and death benefits to
plan members and their beneficiaries. It is accounted for as a separate pension trust fund. Stand-alone
financial reports are issued that include financial statements and required supplementary information for
the System, which may be obtained from the Office of Finance, County of Kalamazoo, Michigan, 201 West
Kalamazoo Avenue, Kalamazoo, Michigan,49007.
97
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Eligibility
An employee becomes a member in the System as of his or her date of eligible employment. Participants
become 100% vested for benefits after eight years of service. Terminated members vested in the System
are eligible for deferred retirement benefits.
Benefits Provided
Regular retirement benefits begin at age 60 with 8 years or more of service for County employees hired
before July 1, 2009. Regular retirement benefits begin at age 65 with 8 years or more of service for the
County employees hired on or after July 1, 2009. Certain County employees are eligible for normal
retirement at age 55 with 25 years of service. Members may retire at age 55 with 8 years of service for a
reduced benefit.
Deferred members of the County hired before October 1, 2009 may elect to receive a lump sum benefit at
any time before or after reaching the retirement age. All deferred members may receive annuity benefits at
the normal or early retirement age.
Benefits are determined at the member's retirement date based on a formula of the member's service
credit, final average compensation, and a percentage factor. Service credit is determined by the total
number of full or part-time (at least 20 hours per week) years and months of employment. Additional
service may be credited for any member with a military leave. The final average compensation is the
average compensation received during the highest 5 consecutive years of the last 10 years of service or all
years of service if the employee has less than 10 years of service. The percentage is determined by the
participating employers of the System and ranged from 1.7% to 2.5% in 2022. Annual benefits are reduced
for early retirement or beneficiary benefits. Employees may choose to receive benefits in monthly
payments or as a lump sum payment. Lump sum payments for employees hired before October 1, 2009 are
calculated using the annual benefit, expected future lifetime, and a discount rate. Lump sum payments are
no longer an option available for County employees hired on or after October 1, 2009. The discount rate
shall be the investment return assumption as adopted by the Retirement Investment Committee to be used
in the annual actuarial valuation of the System.
Contributions
Employer Contributions. The System's funding policy provides for periodic employer contributions at
actuarially determined rates that are expressed as percentages of annual covered payroll, and are designed
to accumulate sufficient assets to pay benefits when due. The contribution rate ranged from 0.00% to
10.96% of projected valuation payroll for the year ended December 31, 2022. The normal cost and
amortization payment were determined using an entry-age actuarial funding method. Unfunded actuarial
accrued liabilities are being amortized as a level percent-of-payroll over an open period of 10 years.
Employee Contributions. No employee contributions are required for participation in the System. The only
contributions recognized are those relating to purchased years of service.
98
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
It is the County's policy to fund the actuarial determined pension liability in order for funds to be available
when a member retires. The employers are required to contribute a percentage of payroll at an actuarially
determined rate. The contribution rate is based on the actuarial assumptions and experiences. Once a
group is full or overfunded, the employer no longer contributes for that group. The County required to
contribute the following percentages of payroll for the year ended December 31, 2022:
Airport 0.00%
AS&E/B&G/Parks 0.00%
Head start I 0.00%
Head start II 0.00%
Juvenile court 10.35%
Juvenile home 4.51%
Non-represented 4.22%
Sheriff command 0.00%
FO P 0.00%
The sheriff command no longer has active members and therefore no contribution rate can be determined
based on a percentage of payroll. The County contributed a fixed dollar amount for the sheriff command of
$50,366 for the year ended December 31, 2022.
The County's contractually determined and actual contributions were as follows for the year ended
December 31, 2022:
Contractually
Determined Actual Percent
Contribution Contribution Contributed
$ 1,753,777 $ 1,753,777 100.00%
System members may purchase credited service for time served in the military. To purchase credited
service for military leave, members pay an amount equal to 5% of the member's annual compensation for
each year purchased. Members of the County of Kalamazoo Board of Commissioners electing to participate
in the plan must contribute 100% of the actuarial cost annually. System members retain the right upon
termination to withdraw their contributions plus regular interest, as defined by the System, in lieu of any
pension rights they may have. Members may repurchase past service credit for an amount equal to the
aggregate amount of contributions the County made at the time of the previous service plus accrued
interest from the date of separation to the date of the deposit.
The System maintains a member deposit fund, which is used to accumulate contributions made by plan
members and related accrued interest. As detailed in the plan document, the fund is legally required to
distribute individual employee contributions and related interest, upon request by a terminated plan
member. The balance in the member deposit fund at December 31, 2022 is$486,499.
99
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Net Pension Asset. At December 31, 2022, the County reported an asset of$7,406,539 for its proportionate
share of the net pension asset.The System's net pension asset was measured as of December 31, 2022, and
the total pension liability used to calculate the net pension asset was determined by an actuarial valuation
as of December 31, 2021, which used update procedures to roll forward the estimated liability to
December 31, 2022. At December 31, 2022, the County's proportion was 72.319 percent, which was a
decrease of 1.397 percent from its proportion measured as of December 31, 2021.
Actuarial Assumptions. The County's net pension asset was measured as of December 31, 2022, and the
total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of
December 31, 2021, using the following actuarial assumptions applied to all periods included in the
measurement:
Inflation 3.25%
Salary increases(includes inflation, as noted above) 3.25%to 7.25%
Investment rate of return 7.25%
Mortality rates were based on the Pub-2010 amount weighted, general, employee, healthy retiree, disabled
retiree, safety, male, and female tables, with future mortality improvements projected to 2025 using scale
M P-2019.
The actuarial assumptions used in the December 31, 2021 valuation (measurement date of December 31,
2022) were based on the results of an actuarial experience study for the period January 1, 2014 to
December 31, 2018.
100
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Long-term Expected Rate of Return. The long-term expected rate of return on pension plan investments
was determined using a building-block method in which best-estimate ranges of expected future real rates
of return (expected returns, net of investment expense and inflation) are developed for each major asset
class. These ranges 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. Best estimates of arithmetic real rates of return for each major asset class included in the System's
target asset allocation are summarized in the following table as of December 31, 2022:
Expected
Long-term Money-
Target Expected Real Weighted Rate
Asset Class Allocation Rate of Return of Return
U.S. small cap (manager 1) 5.00% 4.13% 0.21%
U.S. small cap (manager 2) 10.00% 4.13% 0.41%
International developed equity 10.00% 3.43% 0.34%
U.S. large cap (manager 1) 30.00% 3.63% 1.09%
U.S. large cap (manager 2) 5.00% 3.63% 0.18%
Emerging markets 10.00% 5.73% 0.57%
Domestic fixed income 25.00% 2.03% 0.51%
Real estate (manager 1) 2.50% 3.43% 0.09%
Real estate (manager 2) 2.50% 3.43% 0.09%
100.00%
Inflation 3.25%
Diversified portfolio additional returns 0.51%
Investment rate of return 7.25%
Not only is the time horizon longer for an actuarial valuation relative to the time horizon over which the
above projected returns were generated, but also there is an additional correlation resulting from a
diversified portfolio that will provide additional returns, as reflected above.
Discount Rate. The discount rate used to measure the total pension liability was 7.25%. The projection of
cash flows used to determine the discount rate assumed that County contributions will be made at rates
equal to the actuarially determined contribution rates. Based on those assumptions, the County's fiduciary
net position was projected to be available to make all projected future benefit payments of 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.
101
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Sensitivity of the Net Pension Asset to Changes in the Discount Rate. The following table presents the
County's net pension asset, calculated using a single discount rate of 7.25%, as well as what the County's net
pension asset would be if it were calculated using a single discount rate that is one-percentage-point lower
(6.25%)or one-percentage-point higher(8.25%)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
6.25% 7.25% 8.25%
County's net pension (asset) liability $ 12,593,335 $ (7,406,539) $ (24,138,990)
Pension Plan Fiduciary Net Position. Detailed information about the System's fiduciary net position is
available in the combining statements for the pension and other postemployment benefit trust funds in
Note 12.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions. For the year ended December 31, 2022, the County's total pension expense amounted to
$6,730,988. At December 31, 2022, the County reported pension-related deferred outflows of resources
and deferred inflows of resources from the following sources:
Net Deferred
Deferred Deferred Outflows
Outflows of Inflows of (Inflows)of
County Resources Resources Resources
Difference between expected and
actual experience $ 2,232,336 $ 53,214 $ 2,179,122
Changes of assumptions 245,314 - 245,314
Net difference between projected and
actual investment earnings on
pension plan investments 14,608,777 - 14,608,777
Changes in proportionate share and differences
between employer contributions and proportionate
share of contributions 734,311 267,197 467,114
Total $ 17,820,738 $ 320,411 $ 17,500,327
102
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Amounts reported as pension-related deferred outflows of resources and deferred inflows of resources will
be recognized in pension expense as follows:
YearEnded
December 31, County
2023 $ 999,679
2024 4,203,821
2025 4,246,517
2026 8,050,310
$ 17,500,327
Payable to the Pension Plan. At December 31, 2022, the County reported a payable of $99,884 to the
pension plan.
Defined Contribution Plans
Sheriff's Department
The County provides pension benefits for all of its full-time employees of the Sheriff's Department not
covered by the Kalamazoo County Employees' Retirement System through a defined contribution plan,
established and administered by the Fraternal Order of Police, Lodge No. 98 (FOP). In a defined
contribution plan, benefits depend solely on amounts contributed to the plan, plus investment earnings.
Employees are eligible to participate from the date of employment. For employees hired before
September 17, 2013, the County contributes an amount equal to 16.00% of the employee's salary each pay
period. For employees hired after this date, the County contributes an amount equal to 10.00% of the
employee's salary each pay period. The County's contributions for each employee (and interest allocated to
the employee's account) are fully vested upon deposit into a participant's account. The County made the
required 2022 contribution of $2,250,712. The County is not a fiduciary with respect to this plan and,
accordingly, assets and liabilities of the plan have been excluded from these financial statements.
Contribution requirements are established or amended under the authority of the County Board and
collective bargaining.
Other Defined Contribution Plan
Currently, one Probate Court judge and four District Court employees have elected not to participate in the
County's defined benefit plan described above. The probate judge is considered a State of Michigan
employee and has elected to participate in a State of Michigan retirement plan under which the State and
participant share in the cost of the plan.
The County has agreed to contribute, on behalf of the District Court employees, to defined contribution
plans that are administered by unrelated third parties. The County made the required 2022 contributions
on behalf of the District Court employees in the amount of$707. The County is not a fiduciary with respect
to these plans and, accordingly, the assets and liabilities of these plans have been excluded from these
financial statements.
103
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
11. OTHER POSTEMPLOYMENT BENEFITS(OPEB)
Kalamazoo County Retiree Medical 8enefits Plan("Plan")
The County participates in the Kalamazoo County Retiree Medical Benefits Plan (the "Plan), a cost-sharing
multiple-employer defined benefit OPEB plan, which provides retiree health care benefits to eligible Plan
members and beneficiaries. The Plan was established by the County Board of Commissioners and is
administered by the Office of Finance of the County of Kalamazoo, Michigan. Accordingly, it is included as a
fiduciary component unit in the County's annual comprehensive financial report. The County, the Road
Commission, and ISK are participating employers of the Plan.
Stand-alone financial reports are issued that include financial statements and required supplementary
information for the Plan, which may be obtained from the Office of Finance, County of Kalamazoo,
Michigan, 201 West Kalamazoo Avenue, Kalamazoo, Michigan,49007.
Eligibility and Benefits Provided
County policy established that retiring employees, who terminate employment after becoming eligible for
immediate commencement of retirement benefits from the County, shall be eligible for group health
insurance. These benefits are established and can be amended by the County Board of Commissioners.
Active participants of the Fraternal Order of Police ("FOP") defined contribution plan are eligible under the
terms of their collective bargaining agreement. Changes are made through collective bargaining. All other
retiring employees reach eligibility based on hire date, years of retirement plan, credited service and age at
retirement. A retiree and his/her covered dependents must obtain Medicare Parts A& B at the earliest date
eligible. Eligibility conditions for retiree health care benefits are as follows:
Members hired on or before 12/31/2008 - Age 55 with 8 years of service; Members hired on or after
1/1/2009 - Age 60 with 8 years of service (until age 65 for members hired on or after 1/1/2010);
Members hired on or after 1/1/2012- not eligible for retiree health care benefits.
Contributions
The Kalamazoo County Retiree Medical Benefits Plan is funded under the authority defined by the
Kalamazoo County Board of Commissioners. Plan members are charged contributions at a set rate per
member depending on years of service over eight years and the type of optional coverage elected. The
County is currently contributing 50% of the fixed rate determined in the most recent actuarial valuation
adjusted for plan design changes made during the year.
The contribution rates include amortization of the unfunded actuarial accrued liability over a closed period
of 20 years for County, except for a 25 year closed period for Sheriff(FOP).
104
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
The County's contractually determined and actual contributions were as follows for the year ended
December 31, 2022:
Contractually
Determined Actual Percent
Contribution Contribution Contributed
$ 1,251,682 $ 3,981,434 318.09%
Net OPEB Liability. At December 31, 2022, the County reported a liability of $11,188,759 for its
proportionate share of the net OPEB liability. The County's net OPEB liability was measured as of December
31, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of December 31, 2021, which used update procedures to roll forward the estimated liability to
December 31, 2022. At December 31, 2022, the County's proportion was 104.382 percent, which was an
increase of 7.532 percent from its proportion measured as of December 31, 2021.
Actuarial Assumptions. The County's net OPEB liability was measured as of December 31, 2022, and the
total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of
December 31, 2021, using the following actuarial assumptions applied to all periods included in the
measurement:
Inflation 3.25%
Salary increases(includes inflation at 3.5%) 3.25%to 7.25%
Investment rate of return 7.25%
Healthcare cost trend rates Initial trend of 7.50%gradually decreasing to
3.50%
Mortality rates were based on the Pub-2010 amount weighted, general, employee, healthy retiree, disabled
retiree, safety, male, and female tables, with future mortality improvements projected to 2025 using scale
M P-2019.
The actuarial assumptions used in the December 31, 2021 valuation (measurement date of December 31,
2022) were based on the results of an actuarial experience study for the period January 1, 2014 to
December 31, 2018.
The 2022 assumption changes resulted from a change in healthcare cost trend rates.
105
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Long-term Expected Rate of Return. 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 real rates of
return (expected returns, net of investment expense and inflation) are developed for each major asset class.
These ranges 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. Best
estimates of arithmetic real rates of return for each major asset class included in the Plan's target asset
allocation are summarized in the following tables as of December 31, 2022:
Expected
Long-term Money-
Target Expected Real Weighted Rate
Asset Class Allocation Rate of Return of Return
U.S. small cap (manager 1) 5.00% 4.13% 0.21%
U.S. small cap (manager 2) 10.00% 4.13% 0.41%
International developed equity 10.00% 3.43% 0.34%
U.S. large cap (manager 1) 30.00% 3.63% 1.09%
U.S. large cap (manager 2) 5.00% 3.63% 0.18%
Emerging markets 10.00% 5.73% 0.57%
Domestic fixed income 25.00% 2.03% 0.51%
Real estate (manager 1) 2.50% 3.43% 0.09%
Real estate (manager 2) 2.50% 3.43% 0.09%
100.00%
Inflation 3.25%
Diversified portfolio additional returns 0.51%
Investment rate of return 7.25%
Not only is the time horizon longer for an actuarial valuation relative to the time horizon over which the
above projected returns were generated, but also there is an additional correlation resulting from a
diversified portfolio that will provide additional returns, as reflected above.
Discount Rate. The discount rate used to measure the total OPEB liability at December 31, 2022 was 7.25%.
The projection of cash flows used to determine the discount rate assumed that the County will contribute at
a rate equal to the greater of the pay-as-you-go cost or 50% of the actuarially determined employer
contribution, plus an additional $300,000 per year. Based on those assumptions, the County's fiduciary net
position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all
periods of projected benefit payments to determine the total OPEB liability.
106
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate. The following table presents the net
OPEB liability, calculated using a single discount rate of 7.25%, as well as what the County's net OPEB
liability would be if it were calculated using a single discount rate that is one-percentage-point lower
(6.25%) or one-percentage-point higher(8.25%)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
6.25% 7.25% 8.25%
County's net OPEB liability $ 14,908,665 $ 11,188,759 $ 8,006,687
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate Assumption. The following
table presents the net OPEB liability of the County, as well as what the County's net OPEB liability would be
if it were calculated using healthcare cost trend rates that are 1% lower (6.50% decreasing to 2.50%) or 1%
higher(8.50%decreasing to 4.50%)than the current healthcare cost trend rates:
Healthcare
1%Decrease Cost Trend 1%Increase
(6.50% Rates(7.50% (8.50%
Decreasing to Decreasing to Decreasing to
2.50%) 3.50%) 4.50%)
County's net OPEB liability $ 7,560,128 $ 11,188,759 $ 15,446,749
OPEB Plan Fiduciary Net Position. Detailed information about the OPEB plan's fiduciary net position is
available in the combining statements for the pension and other postemployment benefit trust funds in
Note 12.
107
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB. For
the year ended December 31, 2022, the County's total OPEB expense amounted to $(4,125,214). At
December 31, 2022, the County reported OPEB-related deferred outflows of resources and deferred inflows
of resources from the following sources:
Net Deferred
Deferred Deferred Outflows
Outflows of Inflows of (Inflows)of
County Resources Resources Resources
Difference between expected and
actual experience $ - $ 15,905,305 $ (15,905,305)
Changes in assumptions 3,597,490 71,429 3,526,061
Net difference between projected and
actual investment earnings on
OPEB plan investments 2,414,214 - 2,414,214
Changes in proportionate share and differences
between employer contributions and proportionate
share of contributions 54,885 54,885 -
Total $ 6,066,589 $ 16,031,619 $ (9,965,030)
Amounts reported as OPEB-related deferred outflows of resources and deferred inflows of resources will be
recognized in OPEB expense as follows:
Year Ended
December 31, County
2023 $ (5,508,936)
2024 (4,662,745)
2025 (873,451)
2026 1,080,102
$ (9,965,030)
Payable to the OPEB Plan. At December 31, 2022, the County reported no amounts payable to the OPEB
plan.
The OPEB liability attributable to the governmental activities will be liquidated by the County's General,
special revenue funds and internal service funds.
108
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements ,
12. FINANCIAL STATEMENTS FOR INDIVIDUAL PENSION AND OTHER POSTEMPLOYMENT BENEFIT FUNDS
Financial statements for the individual pension and other postemployment benefits plans are as follows:
Combining Statement of Fiduciary Net Position
Retiree
Health Care Pension
Trust Fund Trust Fund Total
Assets
Cash and cash equivalents $ 4,394,568 $ 5,318,383 $ 9,712,951
Investments, at fair value:
U.S. government securities 2,097,988 17,148,757 19,246,745
U.S. agency securities 2,019,544 16,507,559 18,527,103
Corporate obligations 2,417,235 19,758,245 22,175,480
Municipal bonds 4,654 38,043 42,697
Foreign corporate obligations 301,249 2,462,382 2,763,631
Mortgage-backed funds 293,336 2,397,702 2,691,038
Domestic equity mutual funds/
collective trust funds 13,450,917 109,946,516 123,397,433
Emerging market mutual funds 2,744,642 22,434,443 25,179,085
International equity mutual funds 2,850,622 23,300,713 26,151,335
Real estate investment trust 664,350 5,430,330 6,094,680
Real estate pooled separate account 1,015,335 8,299,248 9,314,583
Receivables:
Sale of investments 290,433 2,373,976 2,664,409
Interest and dividends 47,525 388,465 435,990
Employer contributions - 99,884 99,884
Other 71,481 - 71,481
Other assets- prepaids 98,034 13,353 111,387
Total assets 32,761,913 235,917,999 268,679,912
Liabilities
Accounts payable - 66,917 66,917
Benefits payable 24,106 1,021,477 1,045,583
Purchase of investments 643,162 5,257,145 5,900,307
Totalliabilities 667,268 6,345,539 7,012,807
109
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Retiree
Health Care Pension
Trust Fund Trust Fund Total
Net position
Restricted for:
Employees' pension benefits $ - $ 229,572,460 $ 229,572,460
Other postemployment benefits 32,094,645 - 32,094,645
Total net position $ 32,094,645 $ 229,572,460 $ 261,667,105
Combining Statement of Changes in Fiduciary Net Position
Retiree
Health Care Pension
Trust Fund Trust Fund Total
Additions
Contributions:
Employer $ 4,052,143 $ 2,751,279 $ 6,803,422
Investment earnings(loss):
Net depreciation in fair value of investments (4,718,839) (40,193,870) (44,912,709)
Income on mutual funds 558,255 4,632,214 5,190,469
Interest and dividends 221,343 1,860,344 2,081,687
Income on real estate pooled separate account 25,767 213,809 239,576
Total investment earnings (loss) (3,913,474) (33,487,503) (37,400,977)
Investment expense (95,064) (814,267) (909,331)
Net investment earnings(loss) (4,008,538) (34,301,770) (38,310,308)
Total additions(net of investment loss) 43,605 (31,550,491) (31,506,886)
Deductions
Benefit payments 2,029,288 14,320,350 16,349,638
Administrative expenses 314,109 476,267 790,376
Total deductions 2,343,397 14,796,617 17,140,014
Change in net position (2,299,792) (46,347,108) (48,646,900)
Net position, beginning of year 34,394,437 275,919,568 310,314,005
Net position,end of year $ 32,094,645 $ 229,572,460 $ 261,667,105
110
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
13. RISK MANAGEMENT
The risks of loss arising from general liability, property, and crime are managed through a combination of
purchased commercial insurance, through the Michigan Municipal Risk Management Authority, and the set
aside of assets. Assets have been set aside for the coverage of up to a maximum of $150,000 for each
general liability claim, and $1,000 for each property and crime claim (also, 10% of next $100,000 of each
property and crime claim). Purchased commercial insurance provides coverage in excess of these limits and
for all other risks of loss. With regard to vehicle physical damage claims, the County is entirely self-insured
due to the prohibitive cost of commercial insurance for such losses.
The Employee Benefit Fund provides coverage for up to a maximum of $550,000 for each workers'
compensation claim ($600,000 for Sheriff's Office employees). The County purchases commercial insurance
for claims in excess of this coverage up to a maximum of $1,000,000 for each claim and $5,000,000 for
aggregate claims. Workers' compensation claim expenditures and liabilities are reported when it is
probable that a loss has occurred and the amount of that loss may be reasonably estimated.
Liabilities include an amount for claims that have been incurred but not reported. Because actual claim
liabilities depend on such complex factors as inflation, changes in legal doctrines, and damage awards, the
process used in computing claim liabilities does not necessarily result in an exact amount. Claim liabilities
are reevaluated periodically to take into consideration recently settled claims, the frequency of claims, and
other economic and social factors. Liabilities for incurred losses to be settled by fixed or reasonably
determinable payments over a long period are not significant, as the County prefers to liquidate such
liabilities immediately.
The County manages its risk of loss arising from health and medical claims through a combination of
purchased commercial insurance and a set aside of assets for claims settlements. For those claims(up to an
annual maximum of$225,000 per individual)financed from the set aside of assets, the County reports claim
expenditures and liabilities when it is probable that a loss has occurred and the amount of loss may be
reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported.
Health and medical claim liabilities are subject to the same estimation limitations and periodic reevaluation
as workers' compensation claims. For all risks of loss,there have been no significant reductions in insurance
coverage from coverage provided in prior years. In addition, in the past three fiscal years, settlements did
not exceed insurance coverage.
111
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
Changes in the balances of claim liabilities consists of the following:
Estimated Current Year Estimated
Liability Claims and Liability
Beginning Changes in Claims End
of Year Estimates Payments of Year
General liability and crime:
2021 $ 244,862 $ 424,893 $ (117,905) $ 551,850
2022 551,850 436,994 (254,272) 734,572
Workers' compensation:
2021 1,212,699 1,223,015 (615,659) 1,820,055
2022 1,820,055 470,468 (848,274) 1,442,249
Employee health and medical:
2021 610,000 9,436,084 (9,377,084) 669,000
2022 669,000 9,299,132 (9,320,571) 647,561
Employee dental:
2021 33,999 613,148 (614,147) 33,000
2022 33,000 521,270 (539,645) 14,625
The County considers all claims payable to be current liabilities and to be liquidated within the next year.
The County considers property and vehicle damage claims arising from natural disasters, catastrophes, or
other extraordinary events as subject to the provisions of the accounting standards governing risk
management ad, therefore, reportable. Expenditures incurred in connection with assets repairs or
replacements not associated with such causes are considered outside the measurement and reporting
standards.
14. PROPERTY TAXES
Property taxes are levied on the assessed taxable value of the property as established by local units,
accepted by the County and equalized under State statute at approximately 50% of the current estimated
market value.
Tax Abatements
The County received reduced property tax revenues during 2022 as a result of industrial facilities tax
exemptions (IFT's) entered into by cities,villages,townships, and authorities within the County.
The IFT's were entered into based upon the Plant Rehabilitation and Industrial Developments Districts Act
(known as the Industrial Facilities Exemption), PA 198 of 1974, as amended. IFT's provide a tax incentive to
manufacturers to enable renovation and expansion of aging facilities, assist in the building of new facilities,
and to promote the establishment of high-tech facilities. Properties qualifying for IFT status are taxed at
50% of the millage rate applicable to other real and personal property in the county. The abatements
amounted to$467,716 in reduced county tax revenues for 2022.
112
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
15. CONTINGENT LIABILITIES
The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, in the opinion of the County and its Corporate Counsel, the resolution of these matters will
not have a material adverse effect on the financial condition of the County.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor
agencies, principally the Federal government. Any disallowed claims, including amounts already collected,
may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be
disallowed by the grantor cannot be determined at this time although the County expects such amounts, if
any,to be immaterial.
113
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
16. FUND BALANCES-GOVERNMENTAL FUNDS
Detailed information on fund balances of governmental funds is as follows:
Nonmajor
Law Capital Justice Facility Governmental
General Fund Enforcement General Grants Projects Capital Projects Funds Total
Nonspendable
Inventories $ 40,147 $ - $ - $ - $ - $ 1,513 $ 41,660
Prepaids 44,851 10,000 - 36,265 - 3,909 95,025
Long-term advances 306,481 - - - - - 306,481
Total nonspendable 391,479 10,000 - 36,265 - 5,422 443,166
Restricted
Budget stabilization 2,504,073 - - - - - 2,504,073
Law enforcement - 984,108 - - - - 984,108
Justice Facility - - - - 23,639,411 - 23,639,411
Senior millage - - - - - 4,220,426 4,220,426
Register of deeds
automation - - - - - 381,473 381,473
Community development - - - - - 6,352,938 6,352,938
Accommodation tax - - - - - 1,227,108 1,227,108
Grant programs - - 748,090 - - 811,124 1,559,214
911 millage - - - - - 610,023 610,023
Concealed pistol license - - - - - 453,782 453,782
Debt service - - - - - 283,244 283,244
Total restricted 2,504,073 984,108 748,090 - 23,639,411 14,340,118 42,215,800
Committed
Disaster recovery project 40,000 - - - - - 40,000
Circuit court drug court 360,696 - - - - - 360,696
Health&community service 239,010 - - - - - 239,010
Social welfare 5,250 - - - - - 5,250
Candidate filing fees 2,700 - - - - - 2,700
Total committed 647,656 - - - - - 647,656
Assigned
Capital projects - - - 35,455,745 - - 35,455,745
Grant programs - - - - - 721,700 721,700
Total assigned - - - 35,455,745 - 721,700 36,177,445
Unassigned 39,695,700 - - - - - 39,695,700
Total fund balances,
governmental funds $ 43,238,908 $ 994,108 $ 748,090 $ 35,492,010 $ 23,639,411 $ 15,067,240 $ 119,179,767
114
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
17. NET INVESTMENT IN CAPITAL ASSETS
The composition of the County's net investment in capital assets as of December 31, 2022,was as follows:
Governmental Business-type
Activities Activities
Capital assets:
Capital assets not being depreciated $ 66,811,743 $ 15,239,392
Capital assets being depreciated/amortization, net 89,597,284 35,218,534
156,409,027 50,457,926
Related debt:
General obligation bonds 87,165,000 55,370,000
Net bond premium/discount 4,576,918 1,738,029
Unexpended bond proceeds (23,639,411) -
Deferred charge on refunding (129,865) -
Lease payable 145,631 -
Bonds payable related to installment
sales agreements - (55,370,000)
Bond premiums related to installment
sales agreements - (1,738,029)
68,118,273 -
Net investment in capital assets $ 88,290,754 $ 50,457,926
18. OPIOID SETTLEMENT
The County is a Participating Subdivision in the nationwide $21 billion dollar Distributor Settlement
Agreement, dated July 21, 2021 (as subsequently updated) brought by states and local political
subdivisions against McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, and
AmerisourceBergen Drug Corporation, together with their subsidiaries, referred to as, "Settling
Distributors." The Distributor Settlement Agreement releases the Settling Distributors from all claims
asserted in this opioid litigation and also resulted in the entry of a Final Consent Judgment and Dismissal of
the Settling Distributors with Prejudice, to dismiss, with prejudice, the lawsuit brought by the State of
Michigan captioned, State of Michigan, Ex Rel., Dana Nessel v. Cardinal Health, et. al. (Case No. 19-016896-
NZ), in the Circuit Court for Wayne County. The County also executed a Participation Agreement and is a
"Participating Local Government," under the $5 billion dollar nationwide settlement agreement against
manufacturer, Janssen Pharmaceuticals, Inc. ("Janssen") and its parent company, Johnson &Johnson (J&J),
collectively ("Janssen"). The term of the settlement varies by entity; however, the County expects to
receive eighteen (18) installments from the Distributors with the first two installments being paid early in
2023 in the amount of $323,120 and the remaining 16 installments expected to be made annually
beginning in 2024. Additionally, the County expects to receive eleven (11) installments from Janssen with
the first five installments being paid early in 2023 in the amount of $958,731 and the remaining
installments expected to be made annually beginning in 2026. The County is currently allocated
approximately 2.143% of the total State of Michigan local unit settlement and the total amount of the
settlement is expected to be$5,572,465 and $1,280,824 from the Distributors and Janssen, respectively.
115
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Financial Statements
As a result of the payment terms issued to the Directing Administrator of the National Opioid Settlements,
the receivable for the Distributor and Janssen settlement agreements was recorded at the net present
value, using a discount rate for payments to be received subsequent to 2023 of 3%. The net present value
of the combined settlement payments to be received as of December 31, 2022 is$5,566,729.
Additional settlements with pharmacies and manufacturers were entered into during 2022, including CVS,
Walgreens, Walmart, Allergan and Teva. However, as of December 31, 2022, the amounts to be allocated
to and collected by the County were not able to be determined, and as such, no amounts have been
reported related to these settlements in the financial statements.
19. CORONAVIRUS
In March 2020,the World Health Organization declared the novel coronavirus outbreak (COVID-19)to be a
global pandemic. While the pandemic has resulted in an increase in the demands on the County for
providing emergency services to its citizens, the Federal Government has also provided significant
resources to help mitigate the impacts of COVID-19. Between 2021 and 2022, the County received
approximately $51.5 million in payments related to the State and Local Fiscal Recovery Fund. As of
December 31, 2022, the County had $41.2 million of that allocation remaining to spend and recorded as
unearned revenue.
20. RESTATEMENT
The separately issued discretely presented component unit, Central County Transportation Authority,
restated beginning net position by a decrease of$763,929 during the current year. The restatement was a
result of a change to the accounting for OPEB trust assets held in a secondary trust.
■ ■ ■ ■ ■
116
REQUIRED SUPPLEMENTARY INFORMATION
117
COUNTY OF KALAMAZOO, MICHIGAN
� Required Supplementary Information
Employees' Retirement System
Schedule of the County's Proportionate Share of the Net Pension Asset
Year Ended December 31,
2022 2021 2020
County's proportionate share of the net
pension asset $ 7,406,539 $ 46,794,281 $ 26,483,836
County's proportion of the net pension asset 72.319% 73.716% 74.434%
County's covered payroll $ 39,560,340 $ 35,426,516 $ 34,916,796
County's proportionate share of the net pension
asset as a percentage of its covered payroll 18.72% 132.09% 75.85%
Plan fiduciary net position as a percentage
of the total pension liability 104.67% 129.88% 117.25%
See notes to required supplementary information.
118
Year Ended December 31,
2019 2018 2017 2016 2015
$ 25,493,446 $ 9,795,854 $ 38,242,716 $ 26,864,174 $ 19,636,788
74.601% 73.559% 73.738% 74.614% 74.480%
$ 33,819,547 $ 32,319,766 $ 31,090,984 $ 30,382,053 $ 29,100,398
75.38% 30.31% 123.00% 88.42% 67.48%
117.33% 106.99% 129.41% 121.02% 115.68%
119
COUNTY OF KALAMAZOO, MICHIGAN
� Required Supplementary Information
Employees' Retirement System
Schedule of Pension Contributions
�
Year Ended December 31,
2022 2021 2020
Contractually required contribution $ 1,753,777 $ 2,130,345 $ 2,412,288
Contributions in relation to the contractually
required contribution (1,753,777) (2,130,345) (2,412,288)
Contribution deficiency(excess) $ - $ - $ -
County's covered payroll $ 39,560,340 $ 35,426,516 $ 34,916,796
Contributions as a percentage of covered payroll 4.43% 6.01% 6.91%
See notes to required supplementary information.
120
I 1 '
Year Ended December 31,
2019 2018 2017 2016 2015
$ 1,603,818 $ 424,057 $ 662,427 $ 949,476 $ 843,226
(1,603,818) (424,057) (662,427) (4,014,379) (843,226)
$ - $ - $ - $ - $ -
$ 33,819,547 $ 32,319,766 $ 31,090,984 $ 30,382,053 $ 29,100,398
4.74% 1.31% 2.13% 27.65% 2.90%
121
COUNTY OF KALAMAZOO, MICHIGAN
� Required Supplementary Information
Retiree Medical Benefits Plan
Schedule of the County's Proportionate Share of the Net OPEB Liability
Year Ended December 31,
2022 2021 2020 2019 2018
County's proportionate share of
the net OPEB liability $ 11,188,759 $ 23,814,639 $ 29,221,051 $ 33,015,163 $ 38,659,129
County's proportion of the
net OPEB liability 104.382% 96.850% 95.152% 93.767% 92.944%
County's covered payroll $ 30,175,841 $ 27,784,720 $ 31,060,472 $ 32,567,422 $ 33,626,921
County's proportionate share of the
net OPEB liability as a percentage
of its covered payroll 37.08% 85.71% 94.08% 101.37% 114.96%
Plan fiduciary net position as a percentage
of the total OPEB liability 70.31% 53.94% 42.56% 35.11% 27.05%
See notes to required supplementary information.
122
COUNTY OF KALAMAZOO, MICHIGAN
� Required Supplementary Information
Retiree Medical Benefits Plan
Schedule of OPEB Contributions
Year Ended December 31,
2022 2021 2020 2019 2018
Contractually required contributions $ 1,251,682 $ 2,975,221 $ 2,965,720 $ 3,304,770 $ 3,292,072
Contributions in relation to the
contractually required contributions (3,981,434) (4,185,172) (4,377,173) (3,409,685) (5,707,497)
Contribution excess $ (2,729,752) $ (1,209,951) $ (1,411,453) $ (104,915) $ (2,415,425)
County's covered payroll $ 30,175,841 $ 27,784,720 $ 31,060,472 $ 32,567,422 $ 33,626,921
Contributions as a percentage of
covered payroll 13.19°/o 15.06% 14.09%o 10.47% 16.97%o
See notes to required supplementary information.
123
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Required Supplementary Information
Employees' Retirement System
GASB 68 was implemented in 2015. These schedules are being built prospectively. Ultimately, 10 years of data
will be presented.
The 2019 assumption changes resulted from the following:
• Wage inflation decreased from 3.50%to 3.25%
• The spread between investment return and wage inflation increased from 3.75%to 4.00%
• Mortality rates for 2019 were based on the Pub-2010 amount weighted, general, employee, healthy retiree,
disabled retiree, safety, male, and female tables, with future mortality improvements projected to 2025 using
scale MP-2019. Mortality rates for 2018 were based on the RP-2000 Mortality Combined Healthy Tables,
projected 20 years with U.S. Projection Scale BB.
The 2018 assumption changes resulted from a change in the discount rate from 7.50%to 7.25%.
The 2015 assumption changes resulted from the following:
• 1994 Group Annuity Mortality Table used in 2014 and RP-2000 Mortality Combined Healthily Tables used in
2015
• Salary increases for the County ranged from 3.5%to 9.5% in 2014 and 3.5%to 7.5%in 2015
• Salary increases for the Road Commission ranged from 3.5%to 8.2%in 2014 and 3.5%to 7.2%in 2015
124
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Required Supplementary Information
Retiree Medical Benefits Plan
GASB 75 was implemented in 2018. These schedules are being built prospectively. Ultimately, 10 years of data
will be presented.
The 2022 assumption changes resulted from a change in healthcare cost trend rates.
The 2020 assumption changes resulted from a change inflation rate, healthcare cost trend rates, mortality
tables, and salary increase percentages.
The 2019 assumption changes resulted from a change in aging factors. In 2018, aging factors were based on an
internal GRS study using several pricing manuals from National Health Care Consultant Groups and
incorporating analysis and data from a SOA survey regarding aging practices used in health care valuations. In
2019, aging factors were based on the 2013 SOA Study"Health Care Costs- From Birth to Death".
The 2018 assumption changes resulted from a change in the discount rate from 7.50%to 7.25%.
The 2017 change in benefit terms resulted from the following:
• The Kalamazoo County Road Commission eligibility requirements in 2016 included members hired on or
before 12/31/2012. In 2017, eligibility included non-union members hired on or before 12/31/2012 and union
members hired on or before 12/31/2016.
• In 2016, Sheriff employees age 55 with a least 25 years of service or age 60 with at least 10 years of service
were eligible. In 2017,Sheriff employees age 55 or older with at least 8 years of County service were eligible.
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126
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
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128
COUNTY OF KALAMAZOO, MICHIGAN
� General Fund
The General Fund is the principal operating fund of the County. It is used to account for all revenues,
expenditures, and activities not specifically accounted for and reported in another fund. Revenues are derived
primarily from property taxes, intergovernmental revenues, and charges for services.
129
COUNTY OF KALAMAZOO, MICHIGAN
� Detailed Schedule of Revenues, Expenditures and Change in Fund Balance
Budget and Actual-General Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Revenues
Taxes:
Property $ 44,507,100 $ 44,507,100 $ 45,500,391 $ 993,291
Treasurer 95,000 95,000 104,577 9,577
Trailer 24,000 24,000 23,174 (826)
Total taxes 44,626,100 44,626,100 45,628,142 1,002,042
Licenses and permits:
County clerk 9,000 9,000 9,010 10
Animal services and enforcement 701,000 701,000 487,041 (213,959)
Treasurer 14,500 14,500 15,885 1,385
Soil erosion&sedimentation control 45,000 45,000 58,315 13,315
Medical examiner 110,000 110,000 118,000 8,000
Total licenses and permits 879,500 879,500 688,251 (191,249)
Intergovernmental:
Federal grants:
Prosecuting attorney 1,200 1,200 - (1,200)
State grants:
State revenue sharing 5,533,500 5,533,500 5,633,015 99,515
State stabilization sharing 2,624,000 2,624,000 2,963,223 339,223
State court fund distribution 1,200,000 1,200,000 1,088,382 (111,618)
Convention and tourism 1,334,000 1,334,000 1,564,587 230,587
Elections - - 18,090 18,090
Friend of the court 249,000 249,000 317,862 68,862
Circuit court trial division 183,000 183,000 194,327 11,327
Circuit court family division 358,000 358,000 313,238 (44,762)
District court 327,000 327,000 300,572 (26,428)
Prosecuting attorney 245,000 245,000 190,973 (54,027)
Probate court 150,000 150,000 241,892 91,892
Register of deeds 2,500 2,500 2,165 (335)
M a rij u n a 168,000 168,000 1,561,101 1,393,101
Local unit contributions:
Sheriff 1,524,000 1,524,000 2,007,487 483,487
Total intergovernmental 13,899,200 13,899,Z00 16,396,914 2,497,714
continued...
130
COUNTY OF KALAMAZOO, MICHIGAN
� Detailed Schedule of Revenues, Expenditures and Change in Fund Balance
Budget and Actual-General Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Revenues(continued)
Charges for services:
Circuit court administration $ 564,300 $ 564,300 $ 581,272 $ 16,972
District court 1,429,400 1,429,400 1,087,608 (341,792)
Friend of the court 181,000 181,000 190,157 9,157
Probate court 82,300 82,300 102,378 20,078
Elections 225,400 225,400 166,778 (58,622)
Deposits - 700,000 540,818 (159,182)
Identification program 11,500 11,500 16,617 5,117
Animal services and enforcement 54,200 54,200 119,222 65,022
County clerk 421,900 421,900 427,728 5,828
Register of deeds 2,064,000 2,064,000 2,745,753 681,753
Equalization - - 2,500 2,500
Human resources - - 550 550
Prosecuting attorney 28,600 28,600 32,801 4,201
Treasurer 41,500 41,500 40,888 (612)
Buildings&grounds - - 329 329
Drain commissioner 1,600 1,600 900 (700)
Sheriff 1,413,600 1,413,600 804,502 (609,098)
HCS administration 3,600 3,600 7,400 3,800
Planning 2,000 2,000 - (2,000)
Total charges for services 6,524,900 7,224,900 6,868,201 (356,699)
Fines and forfeitures:
Circuit court administration 25,000 25,000 66,994 41,994
District court 775,000 775,000 776,677 1,677
Treasurer 100 100 - (100)
Soil erosion&sedimentation control 500 500 - (500)
Total fines and forfeitures 800,600 800,600 843,671 43,071
Investment earnings(loss) 905,000 905,000 (421,838) (1,326,838)
Contributions and reimbursements:
Identification program - - 4 4
continued...
131
COUNTY OF KALAMAZOO, MICHIGAN
� Detailed Schedule of Revenues, Expenditures and Change in Fund Balance
Budget and Actual-General Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Revenues(concluded)
Other:
Non department revenue $ - $ - $ 25,533 $ 25,533
Circuit court administration - - 684 684
District court - - 848 848
Family counseling services 23,700 23,700 19,515 (4,185)
County clerk - - 1,699 1,699
Register of deeds 1,000 1,000 106 (894)
Finance 127,500 156,300 181,270 24,970
Central service cost recovery 5,066,100 5,066,100 4,748,381 (317,719)
Prosecuting attorney 1,800 1,800 2,080 280
Treasurer 500 500 135 (365)
Sheriff 217,100 217,100 144,576 (72,524)
Planning 18,000 18,000 15,500 (2,500)
Legal services - - 8,592 8,592
Total other 5,455,700 5,484,500 5,148,919 (335,581)
Total revenues 73,091,000 73,819,800 75,152,264 1,332,464
Expenditures
Current:
General government:
Board of commissioners 279,700 369,500 317,888 (51,612)
County administration 1,097,400 1,156,300 1,111,889 (44,411)
Communications 134,800 133,800 127,387 (6,413)
Legal services 525,100 610,000 552,279 (57,721)
Elections 568,000 571,900 537,539 (34,361)
County identification program 57,500 60,100 50,614 (9,486)
County clerk 397,600 417,500 575,434 157,934
Finance 2,246,300 2,167,000 2,104,253 (62,747)
Equalization 550,100 488,100 466,791 (21,309)
Fringe benefits,temporary 925,500 1,046,200 990,330 (55,870)
Information systems 1,369,200 1,668,200 1,499,786 (168,414)
Treasurer 991,200 1,045,200 1,052,339 7,139
Buildings&grounds 3,075,Z00 2,891,200 2,875,882 (15,318)
Utilities 1,472,700 1,472,700 1,243,176 (229,524)
Security 494,600 519,600 485,858 (33,742)
Diversity,equity&inclusion 138,000 121,000 96,966 (24,034)
Total general government 14,322,900 14,738,300 14,088,411 (649,889)
continued...
132
COUNTY OF KALAMAZOO, MICHIGAN
� Detailed Schedule of Revenues, Expenditures and Change in Fund Balance
Budget and Actual-General Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Expenditures(continued)
Current(continued):
Public safety:
Sheriff $ 17,368,100 $ 15,925,400 $ 15,659,199 $ (266,201)
Animal services and enforcement 976,900 977,600 864,363 (113,237)
Emergency management 290,400 314,400 294,598 (19,802)
Adult probation 50,700 105,900 75,720 (30,180)
Total public safety 18,686,100 17,323,300 16,893,880 (429,420)
Public works:
Contractual services 346,100 392,100 365,937 (26,163)
Contractual temp employees 92,900 120,900 107,775 (13,125)
Total public works 439,000 513,000 473,712 (39,288)
Health and welfare:
HCS administration 825,500 767,500 673,844 (93,656)
Circuit court family division 997,500 1,037,000 1,020,053 (16,947)
Veterans affairs 236,000 252,000 237,685 (14,315)
Advertising 829,400 829,400 803,835 (25,565)
Veterans burial 15,000 8,000 6,600 (1,400)
Soldiers&sailors relief 50,000 72,000 69,263 (2,737)
Appropriations to:
Community mental health 2,217,700 2,229,700 2,226,998 (2,702)
Social services - 100 100 -
Public housing - 28,800 28,704 (96)
Total health and welfare 5,171,100 5,224,500 5,067,082 (157,418)
Judicial:
Circuit court administration 5,132,300 4,966,100 4,708,092 (258,008)
Circuit court trial division 540,900 459,100 455,566 (3,534)
District court 4,713,600 4,692,600 4,366,897 (325,703)
Prosecuting attorney 3,086,200 3,116,200 3,092,603 (23,597)
Jury board 3,300 3,300 2,968 (332)
Probate court 933,200 883,600 857,743 (25,857)
Restitution - 700,000 540,818 (159,182)
Total judicial 14,409,500 14,820,900 14,024,687 (796,213)
Community and economic development:
Planning 403,400 313,400 281,583 (31,817)
MSU extension 309,500 316,500 253,925 (62,575)
Appropriation to SW Michigan First 75,000 75,000 75,000 -
Register of deeds 470,200 714,200 692,437 (21,763)
Total community and economic development 1,258,100 1,419,100 1,302,945 (116,155)
continued...
133
COUNTY OF KALAMAZOO, MICHIGAN
� Detailed Schedule of Revenues, Expenditures and Change in Fund Balance
Budget and Actual-General Fund
For the Year Ended December 31, 2022
Actual Over
Original Final (Under)Final
Budget Budget Actual Budget
Expenditures(concluded)
Current(concluded):
Other:
Contingency $ 100,500 $ 4,800 $ - $ (4,800)
Restricted reserve 539,300 1,217,700 - (1,217,700)
At-large drains 85,000 85,000 64,582 (20,418)
Insurance 20,000 20,000 1,476 (18,524)
Strategic issues 125,000 85,000 2,225 (82,775)
Total other 869,800 1,412,500 68,283 (1,344,217)
Debt service:
Principal-leases - - 287,021 287,021
Interest and fiscal charges - - 12,980 12,980
Total debt service - - 300,001 300,001
Total expenditures 55,156,500 55,451,600 52,219,001 (3,232,599)
Revenues over expenditures 17,934,500 18,368,200 22,933,263 4,565,063
Other financing sources(uses)
Transfers in 1,590,000 1,590,000 1,605,852 15,852
Transfers out (19,539,500) (29,722,400) (27,444,558) (2,277,842)
Proceeds from sale of capital assets 15,000 15,000 22,502 7,502
Total other financing sources(uses) (17,934,500) (28,117,400) (25,816,204) 2,301,196
Net change in fund balance - (9,749,200) (Z,882,941) 6,866,259
Fund balance,beginning of year 46,121,849 46,121,849 46,121,849 -
Fund balance,end of year $ 46,121,849 $ 36,372,649 $ 43,238,908 $ 6,866,259
concluded
134
COUNTY OF KALAMAZOO, MICHIGAN
� Nonmajor Governmental Funds
Special Revenue Funds
The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than
expendable trusts or major capital projects) requiring separate accounting because of legal or regulatory
provisions or administrative action.
Parks Fund —accounts for the maintenance and operation of the County owned parks and fairgrounds. Funding
is provided from charges for services,grants,and interfund transfers.
Health Fund — accounts for the costs of providing health protection and health services. Funding is provided
through licenses and permits, federal and state grants, charges for services, General Fund appropriations, and
interfund transfers.
Capital Outlay Special Grants Fund — accounts for various capital outlay function activities financed by federal
and/or state grants restricted for such activities. None are considered individually significant to require
presentation in a separate fund.
Friend of the Court Fund — accounts for operations of the Friend of the Court, including costs incurred in the
collection and subsequent disbursement of child support payments. Fund is provided through federal and state
grants and charges for services. Most of the Friend of the Court revenues are deposited in the General Fund and
later transferred to the Friend of the Court Fund as needed.
County Special Grants Fund — accounts for various activities financed by federal and/or state grants. None are
considered individually significant to require presentation in a separate fund.
Community Economic Development Special Grants Fund — accounts for the tax collections received and
distributed to the Public Housing Commission.
Accommodation Tax Fund — accounts for the collection of a 5% excise tax, which is imposed on all individuals
engaged in the business of providing rooms for transient guests within the County. This tax provides funding for
the Kalamazoo Convention and Visitors Bureau. The County Board resolutions allocate the use of these
revenues to promote tourism and convention business.
Public Safety Special Grants Fund — accounts for various public safety function activities financed by charges for
services and federal and/or state grants restricted for such activities. None are considered individually
significant to require presentation in a separate fund.
Concealed Pistol Licensing Fund —accounts for the fees collected and expenditures related to the County Clerk
issuing licenses to carry a concealed pistol and administering Public Act 3 of 2015.
Law Library Fund —accounts for funds provided for the maintenance of a law library. Funding is provided from
penal fees and interfund transfers.
Area Agency on Aging Fund —accounts for operation and administration of services programs to senior citizens.
Funding is provided through federal and state grants.
135
COUNTY OF KALAMAZOO, MICHIGAN
� Nonmajor Governmental Funds
Child Care Fund —accounts for the County court-administered health and welfare of minor children. Funding is
provided through federal and state grants and interfund transfers.
Community Corrections Fund — accounts for alternatives such as tethers, bail screening, and additional
probation to alleviate jail-overcrowding problems. Funding is provided through state grants and charges for
services.
Indigent Defense Fund — accounts for state grant revenue and local share contributions to provide indigent
defendants in criminal cases with effective assistance of counsel.
911 Millage Fund — accounts for activity related to the collection of the special voter approved millage to
support emergency services.
Senior Millage Fund— accounts for activity related to the collection of the special voter approved millage to
support the programs for Kalamazoo County residents age 60 and older.
Opioid Settlement Fund— accounts for activity related to the opioid settlement.
Debt Service Funds
Debt Service Funds account for the collection of resources and the payment of general long-term debt.
2007 Juvenile Home eond Fund — accounts for the collection of ad valorem taxes and the payment of the
general obligation debt service. This debt is secured by the unlimited taxing power of the County, issued in
connection with the construction of a new Juvenile Home.
2011 Expo Center Improvements Fund —accounts for the transfer of the Accommodation Tax revenue and the
payment of the limited tax general obligation debt service. This debt is secured by Accommodation Tax revenue
and the limited taxing power of the County, issued in connection with the improvements to the Expo Center.
136
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137
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Balance Sheet
Nonmajor Governmental Funds
December 31,2022
Special Revenue Funds
Capital County
Outlay Friend of Special
Parks Health Special Grants the Court Grants
Assets
Cash and cash equivalents $ - $ 658,754 $ 737,625 $ - $ 1,051,438
Investments - - - - -
Receivables:
Accounts 58,033 53,429 - - 497,711
Taxes - - - - -
Due from other governments - 28,123 - 433,273 551,642
Inventories 1,308 - - 205 -
Prepaids 2,294 1,110 - - -
Total assets $ 61,635 $ 741,416 $ 737,625 $ 433,478 $ 2,100,791
Liabilities
Negative equity in pooled cash and
cash equivalents $ 10,807 $ - $ - $ 290,547 $ -
Accounts payable 9,819 83,924 5,256 32,613 223,213
Accrued liabilities 31,938 147,249 896 110,113 219,593
Due to other governments - 216,294 - - 308,456
Deposits payable 5,469 2,166 - - -
Unearned revenue - 21,373 - - 1,349,529
Totalliabilities 58,033 471,006 6,152 433,273 2,100,791
Deferred inflows of resources
Property taxes levied for subsequent period - - - - -
Unavailable revenue-opioid settlement - - - - -
Unavailable revenue-property taxes - - - - -
Total deferred inflows of resources - - - - -
Fund balances
Nonspendable 3,602 1,110 - 205 -
Restricted - - 381,473 - -
Assigned - 269,300 350,000 - -
Total fund balances 3,602 270,410 731,473 205 -
Total liabilities,deferred inflows of resources
and fund balances $ 61,635 $ 741,416 $ 737,625 $ 433,478 $ 2,100,791
138
Special Revenue Funds
Community
Economic Public Concealed
Development Accommodation Safety Pistol Law
Special Grants Tax Special Grants Licensing Library
$ 6,810,094 $ 1,581,860 $ 1,046,890 $ 460,936 $ 38,993
- 174,689 304,382 - -
6,954,707 - - - -
- - 141,498 - -
- - 505 - -
$ 13,764,801 $ 1,756,549 $ 1,493,275 $ 460,936 $ 38,993
$ - $ - $ - $ - $ -
50,084 529,441 758,040 4,820 38,993
5,214 - - 2,334 -
55,298 529,441 758,040 7,154 38,993
7,353,372 - - - -
3,193 - - - -
7,356,565 - - - -
- - 505 - -
6,352,938 1,227,108 734,730 453,782 -
6,352,938 1,227,108 735,235 453,782 -
$ 13,764,801 $ 1,756,549 $ 1,493,275 $ 460,936 $ 38,993
continued...
139
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Balance Sheet
Nonmajor Governmental Funds
December 31,2022
Special Revenue Funds
Area
Agency on Community Indigent 911
Aging Child Care Corrections Defense Millage
Assets
Cash and cash equivalents $ 272,238 $ - $ 20,396 $ 1,885,995 $ 958,467
Investments - - - 97 -
Receivables:
Accounts 41,391 - - - -
Taxes - - - - 6,031,590
Due from other governments 342,541 978,838 229,500 737,265 -
Inventories - - - - -
Prepaids - - - - -
Total assets $ 656,170 $ 978,838 $ 249,896 $ 2,623,357 $ 6,990,057
Liabilities
Negative equity in pooled cash and
cash equivalents $ - $ 510,001 $ - $ - $ -
Accounts payable 584,959 247,778 17,923 2,622,405 -
Accrued liabilities 56,516 221,059 53,179 939 -
Due to other governments - - - - -
Deposits payable - - - - -
Unearned revenue 14,695 - - 13 -
Totalliabilities 656,170 978,838 71,102 2,623,357 -
Deferred inflows of resources
Property taxes levied for subsequent period - - - - 6,372,659
Unavailable revenue-opioid settlement - - - - -
Unavailable revenue-property taxes - - - - 7,375
Total deferred inflows of resources - - - - 6,380,034
Fund balances
Nonspendable - - - - -
Restricted - - 76,394 - 610,023
Assigned - - 102,400 - -
Total fund balances - - 178,794 - 610,023
Total liabilities,deferred inflows of resources
and fund balances $ 656,170 $ 978,838 $ 249,896 $ 2,623,357 $ 6,990,057
140
Special Revenue Funds Debt Service Funds
2007 2011
Opioid Juvenile Expo Center
Senior Millage Settlement Home Bond Improvements Total
$ 4,407,079 $ - $ 226,160 $ - $ 20,156,925
- - 144,256 - 144,353
- 5,566,729 - - 6,696,364
3,233,832 - 1,507,030 - 17,727,159
- - - - 3,442,680
- - - - 1,513
- - - - 3,909
$ 7,640,911 $ 5,566,729 $ 1,877,446 $ - $ 48,172,903
$ - $ - $ - $ - $ 811,355
- - - - 5,209,268
- - - - 849,030
- - - - 524,750
- - - - 7,635
- - - - 1,385,610
- - - - 8,787,648
3,415,722 - 1,591,439 - 18,733,192
- 5,566,729 - - 5,566,729
4,763 - 2,763 - 18,094
3,420,485 5,566,729 1,594,202 - 24,318,015
- - - - 5,422
4,220,426 - 283,244 - 14,340,118
- - - - 721,700
4,220,426 - 283,244 - 15,067,240
$ 7,640,911 $ 5,566,729 $ 1,877,446 $ - $ 48,172,903
concluded
141
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Revenues, Expenditures
and Change in Fund Balances-Nonmajor Governmental Funds
For the Year Ended December 31,2022
Special Revenue Funds
Capital County
Outlay Friend of Special
Parks Health Special Grants the Court Grants
Revenues
Taxes $ - $ - $ - $ - $ -
Licenses and permits - 759,784 - - -
Intergovernmental - 1,870,723 - 1,960,540 8,431,165
Charges for services 1,188,564 899,212 197,440 75,257 40,028
Investment earnings(loss) 4,106 - - - -
Contributions,grants and reimbursements 52,642 18,102 - - 320,356
Other 13,664 - - - -
Total revenues 1,258,976 3,547,821 197,440 2,035,797 8,791,549
Expenditures
Current:
General government - - - - 13,457
Public safety - - - - 416,243
Health and welfare - 6,434,853 - - 6,042,402
Cultural and recreation 1,495,340 - - - -
Judicial - - - 3,155,610 2,932,508
Community and economic development - - 108,589 - 65,995
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Capital outlay - 7,442 8,395 - 44,804
Total expenditures 1,495,340 6,442,295 116,984 3,155,610 9,515,409
Revenues over(under)expenditures (236,364) (2,894,474) 80,456 (1,119,813) (723,860)
Other financing sources(uses)
Transfers in 237,201 2,894,474 350,000 1,119,612 723,860
Transfers out - - - - (15,852)
Total other financing sources(uses) 237,201 2,894,474 350,000 1,119,612 708,008
Net change in fund balances 837 - 430,456 (201) (15,852)
Fund balances,beginning of year 2,765 270,410 301,017 406 15,852
Fund balances,end of year $ 3,602 $ 270,410 $ 731,473 $ 205 $ -
142
� Special Revenue Funds
Community
Economic Public Concealed
Development Accommodation Safety Pistol Law
Special Grants Tax Special Grants Licensing Library
$ 7,009,474 $ 3,495,596 $ - $ - $ -
- - - 105,186 -
91,108 - 494,905 - -
- - 1,194,597 20,667 -
- - 45,513 - -
- - 11,555 1,221 6,500
7,100,582 3,495,596 1,746,570 127,074 6,500
- - 1,822,351 86,166 -
- 2,305,456 - - -
- - - - 77,985
769,295 - - - -
13,000 - 225 - -
782,295 2,305,456 1,822,576 86,166 77,985
6,318,287 1,190,140 (76,006) 40,908 (71,485)
- - - - 71,485
- (585,010) - - -
- (585,010) - - 71,485
6,318,287 605,130 (76,006) 40,908 -
34,651 621,978 811,241 412,874 -
$ 6,352,938 $ 1,227,108 $ 735,235 $ 453,782 $ -
continued...
143
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Revenues, Expenditures
and Change in Fund Balances-Nonmajor Governmental Funds
For the Year Ended December 31,2022
Special Revenue Funds
Area
Agency on Community Indigent 911
Aging Child Care Corrections Defense Millage
Revenues
Taxes $ - $ - $ - $ - $ 6,113,543
Licenses and permits - - - - -
Intergovernmental 2,029,131 4,020,238 785,993 4,746,324 596,379
Charges for services 45,612 14,991 408,854 48,101 -
Investment earnings(loss) - - - (2) -
Contributions,grants and reimbursements - - - - -
Other - - - - -
Total revenues 2,074,743 4,035,229 1,194,847 4,794,423 6,709,922
Expenditures
Current:
General government - - - - -
Public safety - - 1,113,606 - 6,137,821
Health and welfare 4,869,982 8,201,871 - - -
Cultural and recreation - - - - -
Judicial - - - 5,959,023 -
Community and economic development - - - - -
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Capital outlay - - 16,737 - -
Total expenditures 4,869,982 8,201,871 1,130,343 5,959,023 6,137,821
Revenues over(under)expenditures (2,795,239) (4,166,642) 64,504 (1,164,600) 572,101
Other financing sources(uses)
Transfers in 2,795,239 4,166,267 102,400 1,164,600 -
Transfers out - - - - -
Total other financing sources(uses) 2,795,239 4,166,267 102,400 1,164,600 -
Net change in fund balances - (375) 166,904 - 572,101
Fund balances,beginning of year - 375 11,890 - 37,922
Fund balances,end of year $ - $ - $ 178,794 $ - $ 610,023
144
Special Revenue Funds Debt Service Funds
2007 2011
Opioid Juvenile Expo Center
Senior Millage Settlement Home Bond Improvements Total
$ 3,258,637 $ - $ 1,614,124 $ - $ 21,491,374
- - - - 864,970
319,659 - 168,012 - 25,514,177
- - - - 4,133,323
- - 4,391 - 8,495
- - - - 436,613
- - - - 32,940
3,578,296 - 1,786,527 - 52,481,892
- - - - 13,457
- - - - 9,576,187
- - - - 25,549,108
- - - - 3,800,796
- - - - 12,125,126
- - - - 943,879
- - 1,065,000 225,000 1,290,000
- - 736,876 32,809 769,685
- - - - 90,603
- - 1,801,876 257,809 54,158,841
3,578,296 - (15,349) (257,809) (1,676,949)
- - - 257,809 13,882,947
(2,698,435) - - - (3,299,297)
(2,698,435) - - 257,809 10,583,650
879,861 - (15,349) - 8,906,701
3,340,565 - 298,593 - 6,160,539
$ 4,220,426 $ - $ 283,244 $ - $ 15,067,240
concluded
145
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Revenues, Expenditures and Change in Fund Balances
Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended December 31,2022
Parks Health
Actual Over Actual Over
Final (Under)Final Final (Under)Final
Budget Actual Budget Budget Actual Budget
Revenues
Taxes $ - $ - $ - $ - $ - $ -
Licenses and permits - - - 762,600 759,784 (2,816)
Intergovernmental - - - 1,723,700 1,870,723 147,023
Charges for services 1,376,200 1,188,564 (187,636) 904,200 899,212 (4,988)
Investment earnings(loss) 5,500 4,106 (1,394) - - -
Contributions,grants and reimbursements 127,600 52,642 (74,958) 13,000 18,102 5,102
Other 22,300 13,664 (8,636) - - -
Total revenues 1,531,600 1,258,976 (272,624) 3,403,500 3,547,821 144,321
Expenditures
Current:
General government - - - - - -
Public safety - - - - - -
Health and welfare - - - 7,151,700 6,434,853 (716,847)
Cultural and recreation 1,940,500 1,495,340 (445,160) - - -
Judicial - - - - - -
Community and economic
development - - - - - -
Capital outlay - - - 7,500 7,442 (58)
Total expenditures 1,940,500 1,495,340 (445,160) 7,159,200 6,442,295 (716,905)
Revenues over(under)expenditures (408,900) (236,364) 172,536 (3,755,700) (2,894,474) 861,226
Other financing sources(uses)
Transfers in 408,900 237,201 (171,699) 3,755,700 2,894,474 (861,226)
Transfers out - - - - - -
Total other financing sources(uses) 408,900 237,201 (171,699) 3,755,700 2,894,474 (861,226)
Net change in fund balances - 837 837 - - -
Fund balances,beginning of year 2,765 2,765 - 270,410 270,410 -
Fund balances,end of year $ 2,765 $ 3,602 $ 837 $ 270,410 $ 270,410 $ -
146
Capital Outlay Special Grants Friend of the Court County Special Grants
Actual Over Actual Over Actual Over
Final (Under)Final Final (Under)Final Final (Under)Final
Budget Actual Budget Budget Actual Budget Budget Actual Budget
$ - $ - $ - $ - $ - $ - $ - $ - $ -
- - - 2,299,400 1,960,540 (338,860) 14,707,600 8,431,165 (6,276,435)
237,500 197,440 (40,060) 77,600 75,257 (2,343) 51,100 40,028 (11,072)
- - - - - - 338,800 320,356 (18,444)
237,500 197,440 (40,060) 2,377,000 2,035,797 (341,203) 15,097,500 8,791,549 (6,305,951)
- - - - - - 917,700 13,457 (904,243)
- - - - - - 493,500 416,243 (77,257)
- - - - - - 9,317,400 6,042,402 (3,274,998)
- - - 3,263,200 3,155,610 (107,590) 4,983,000 2,932,508 (2,050,492)
276,000 108,589 (167,411) - - - 96,300 65,995 (30,305)
403,000 8,395 (394,605) - - - 263,100 44,804 (218,296)
679,000 116,984 (562,016) 3,263,200 3,155,610 (107,590) 16,071,000 9,515,409 (6,555,591)
(441,500) 80,456 521,956 (886,200) (1,119,813) (233,613) (973,500) (723,860) 249,640
350,000 350,000 - 886,200 1,119,612 233,412 971,500 723,860 (247,640)
- - - - - - - (15,852) 15,852
350,000 350,000 - 886,200 1,119,612 233,412 971,500 708,008 (263,492)
(91,500) 430,456 521,956 - (201) (201) (2,000) (15,852) (13,852)
301,017 301,017 - 406 406 - 15,852 15,852 -
$ 209,517 $ 731,473 $ 521,956 $ 406 $ 205 $ (201) $ 13,852 $ - $ (13,852)
continued...
147
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Revenues, Expenditures and Change in Fund Balances
Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended December 31,2022
Community Economic Development Special
Grants Accommodation Tax
Actual Over Actual Over
Final (Under)Final Final (Under)Final
Budget Actual Budget Budget Actual Budget
Revenues
Taxes $ 7,065,000 $ 7,009,474 $ (55,526) $ 3,400,000 $ 3,495,596 $ 95,596
Licenses and permits - - - - - -
Intergovernmental 50,000 91,108 41,108 - - -
Charges for services - - - - - -
Investment earnings(loss) - - - - - -
Contributions,grants and reimbursements - - - - - -
Other - - - - - -
Total revenues 7,115,000 7,100,582 (14,418) 3,400,000 3,495,596 95,596
Expenditures
Current:
General government - - - - - -
Public safety - - - - - -
Health and welfare - - - - - -
Cultural and recreation - - - 2,665,800 2,305,456 (360,344)
Judicial - - - - - -
Community and economic
development 7,115,000 769,295 (6,345,705) - - -
Capital outlay - 13,000 13,000 - - -
Total expenditures 7,115,000 782,295 (6,332,705) 2,665,800 2,305,456 (360,344)
Revenues over(under)expenditures - 6,318,287 6,318,287 734,200 1,190,140 455,940
Other financing sources(uses)
Transfers in - - - - - -
Transfers out - - - (734,200) (585,010) (149,190)
Total other financing sources(uses) - - - (734,200) (585,010) 149,190
Net change in fund balances - 6,318,287 6,318,287 - 605,130 605,130
Fund balances,beginning ofyear 34,651 34,651 - 621,978 621,978 -
Fund balances,end of year $ 34,651 $ 6,352,938 $ 6,318,287 $ 621,978 $ 1,227,108 $ 605,130
148
Public Safety Special Grants Concealed Pistol Licensing Law Library
Actual Over Actual Over Actual Over
Final (Under)Final Final (Under)Final Final (Under)Final
Budget Actual Budget Budget Actual Budget Budget Actual Budget
$ - $ - $ - $ - $ - $ - $ - $ - $ -
- - - 88,800 105,186 16,386 - - -
491,300 494,905 3,605 - - - - - -
1,232,200 1,194,597 (37,603) 20,000 20,667 667 - - -
- 45,513 45,513 - - - - - -
64,400 11,555 (52,845) - 1,221 1,221 6,500 6,500 -
1,787,900 1,746,570 (41,330) 108,800 127,074 18,274 6,500 6,500 -
1,902,400 1,822,351 (80,049) 95,800 86,166 (9,634) - - -
- - - - - - 76,300 77,985 1,685
7,500 225 (7,275) 13,000 - (13,000) - - -
1,909,900 1,822,576 (87,324) 108,800 86,166 (22,634) 76,300 77,985 1,685
(122,000) (76,006) 45,994 - 40,908 40,908 (69,800) (71,485) (1,685)
- - - - - - 69,800 71,485 1,685
- - - - - - 69,800 71,485 1,685
(122,000) (76,006) 45,994 - 40,908 40,908 - - -
811,241 811,241 - 412,874 412,874 - - - -
$ 689,241 $ 735,235 $ 45,994 $ 412,874 $ 453,782 $ 40,908 $ - $ - $ -
continued...
149
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Revenues, Expenditures and Change in Fund Balances
Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended December 31,2022
Area Agency on Aging Child Care
Actual Over Actual Over
Final (Under)Final Final (Under)Final
Budget Actual Budget Budget Actual Budget
Revenues
Taxes $ - $ - $ - $ - $ - $ -
Licenses and permits - - - - - -
Intergovernmental 2,407,700 2,029,131 (378,569) 4,285,000 4,020,238 (264,762)
Chargesforservices 46,200 45,612 (588) 109,300 14,991 (94,309)
Investment earnings(loss) - - - - - -
Contributions,grants and reimbursements 700 - (700) 2,700 - (2,700)
Other 2,960,000 - (2,960,000) - - -
Total revenues 5,414,600 2,074,743 (3,339,857) 4,397,000 4,035,229 (361,771)
Expenditures
Current:
General government - - - - - -
Public safety - - - - - -
Health and welfare 8,912,100 4,869,982 (4,042,118) 9,612,600 8,201,871 (1,410,729)
Cultural and recreation - - - - - -
Judicial - - - - - -
Community and economic
development - - - - - -
Capital outlay - - - - - -
Total expenditures 8,912,100 4,869,982 (4,042,118) 9,612,600 8,201,871 (1,410,729)
Revenues over(under)expenditures (3,497,500) (2,795,239) 702,261 (5,215,600) (4,166,642) 1,048,958
Other financing sources(uses)
Transfers in 3,485,500 2,795,239 (690,261) 5,215,600 4,166,267 (1,049,333)
Transfers out - - - - - -
Total other financing sources(uses) 3,485,500 2,795,239 (690,261) 5,215,600 4,166,267 (1,049,333)
Net change in fund balances (12,000) - 12,000 - (375) (375)
Fund balances,beginning ofyear - - - 375 375 -
Fund balances,end of year $ (12,000) $ - $ 12,000 $ 375 $ - $ (375)
150
Community Corrections Indigent Defense 911 Millage
Actual Over Actual Over Actual Over
Final (Under)Final Final (Under)Final Final (Under)Final
Budget Actual Budget Budget Actual Budget Budget Actual Budget
$ - $ - $ - $ - $ - $ - $ 6,099,900 $ 6,113,543 $ 13,643
1,096,800 785,993 (310,807) 3,384,000 4,746,324 1,362,324 38,000 596,379 558,379
400,000 408,854 8,854 70,000 48,101 (21,899) - - -
- - - 100 (2) (102) - - -
- - - 182,100 - (182,100) - - -
1,496,800 1,194,847 (301,953) 3,636,200 4,794,423 1,158,223 6,137,900 6,709,922 572,022
1,563,700 1,113,606 (450,094) - - - 6,137,900 6,137,821 (79)
- - - 4,800,800 5,959,023 1,158,223 - - -
17,800 16,737 (1,063) - - - - - -
1,581,500 1,130,343 (451,157) 4,800,800 5,959,023 1,158,223 6,137,900 6,137,821 (79)
(84,700) 64,504 149,204 (1,164,600) (1,164,600) - - 572,101 572,101
84,700 102,400 17,700 1,164,600 1,164,600 - - - -
84,700 102,400 17,700 1,164,600 1,164,600 - - - -
- 166,904 166,904 - - - - 572,101 572,101
11,890 11,890 - - - - 37,922 37,922 -
$ 11,890 $ 178,794 $ 166,904 $ - $ - $ - $ 37,922 $ 610,023 $ 572,101
continued...
151
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Revenues, Expenditures and Change in Fund Balances
Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended December 31,2022
Senior Millage
Actual Over
Final (Under)Final
Budget Actual Budget
Revenues
Taxes $ 3,248,200 $ 3,258,637 $ 10,437
Licenses and permits - - -
Intergovernmental 317,900 319,659 1,759
Charges for services - - -
Investment earnings(loss) - - -
Contributions,grants and reimbursements - - -
Other - - -
Total revenues 3,566,100 3,578,296 12,196
Expenditures
Current:
General government - - -
Public safety - - -
Health and welfare - - -
Cultural and recreation - - -
ludicial - - -
Community and economic
development - - -
Capital outlay - - -
Totalexpenditures - - -
Revenuesover(under)expenditures 3,566,100 3,578,296 12,196
Other financing sources(uses)
Transfers in - - -
Transfers out (5,816,100) (2,698,435) (3,117,665)
Total other financing sources(uses) (5,816,100) (2,698,435) 3,117,665
Net change in fund balances (2,250,000) 879,861 3,129,861
Fund balances,beginning of year 3,340,565 3,340,565 -
Fund balances,end of year $ 1,090,565 $ 4,220,426 $ 3,129,861
concluded
152
COUNTY OF KALAMAZOO, MICHIGAN
� Internal Service Funds
The 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, and to other governmental units on a cost reimbursement
basis.
Employee eenefits Fund —was established to accumulate and allocate the costs of fringe benefits provided to
employees of the primary government. Funding is provided through charges to the departments based upon
payroll costs.
Technology Fund — was established to accumulate and allocate the costs to provide telephone and network
services throughout all departments of the primary government. Funding is provided through charges for
services to benefited departments.
Alcott Facility Fund —was established to accumulate and allocate the operating and maintenance costs of the
facility that house many health and welfare departments of the primary government. Funding is provided
through rental charges to benefited departments.
Central5tores Fund —was established to accumulate and allocate the costs of print shop and central stores of
the primary government. Funding is provided through charges for services and products to benefited
departments.
HSD Personnel Pool Fund —was established to accumulate and allocate the costs of a personnel pool utilized by
many of the health and welfare departments of the primary government. Funding is provided through charges
for services to benefited departments.
LocalSite Remediation Revolving Fund —was established to account for the money available to the Brownfield
Development Authority to pay for the costs of eligible activities on eligible property located in the County in
accordance with MCL 125.2663,Section 13(5).
Insurance Fund — was established to account for insurance costs associated with the Michigan Municipal Risk
Management Authority and other purchased commercial insurance as well as proceeds related to insurance
claims. Funding is provided by the General Fund.
153
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Net Position
Internal Service Funds
December 31, 2022
Employee Alcott Central
Benefits Technology Facility Stores
Assets
Current assets:
Cash and cash equivalents $ 9,616,220 $ 938,055 $ 89,457 $ -
Receivables:
Accounts 74,232 - - 13
Accrued interest 704 - - -
Inventories - 918 - 126,482
Prepaids 45,021 233,787 - -
Total current assets 9,736,177 1,172,760 89,457 126,495
Noncurrent assets:
Capital assets not being depreciated - 453,904 - -
Capital assets being depreciated, net - 183,760 - 17,067
Total noncurrent assets - 637,664 - 17,067
Total assets 9,736,177 1,810,424 89,457 143,562
Liabilities
Current liabilities:
Negative equity in cash and cash equivalents - - - 7,587
Accounts payable 430,423 44,276 89,457 29,927
Accrued liabilities 251,313 13,032 - 5,104
Deposits payable 61,150 - - 3,835
Claims payable 2,104,435 - - -
Current portion of long-term debt 5,716 24,438 - 5,845
Total liabilities(all current) 2,853,037 81,746 89,457 52,298
Net position
Investment in capital assets - 637,664 - 17,067
Unrestricted 6,883,140 1,091,014 - 74,197
Total net position $ 6,883,140 $ 1,728,678 $ - $ 91,264
154
Local Site �
Remediation
Revolving
Fund Insurance Total
$ 1,723,092 $ - $ 12,366,824
- 848,312 922,557
- - 704
- - 127,400
- 707,658 986,466
1,723,092 1,555,970 14,403,951
- - 453,904
- - 200,827
- - 654,731
1,723,092 1,555,970 15,058,682
- 785,054 792,641
- 36,344 630,427
- - 269,449
- - 64,985
- 734,572 2,839,007
- - 35,999
- 1,555,970 4,632,508
- - 654,731
1,723,092 - 9,771,443
$ 1,723,092 $ - $ 10,426,174
155
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Revenues, Expenditures and
Change in Fund Net Position
Internal Service Funds
For the Year Ended December 31, 2022
Employee Alcott Central
Benefits Technology Facility Stores
Operating revenues
Charges for services $ 26,581,817 $ 1,488,701 $ 672,952 $ 585,697
Operating expenses
Salaries and fringes - 324,262 234,345 122,775
Supplies and other operating expenses 108,241 782,585 638,765 460,625
Depreciation - 117,246 - 3,140
Insurance benefits and claims 25,031,760 - - -
Total operating expenses 25,140,001 1,224,093 873,110 586,540
Operating income(loss) 1,441,816 264,608 (200,158) (843)
Nonoperating revenues
Investment earnings 17,287 - - -
Income(loss) before transfers 1,459,103 264,608 (200,158) (843)
Transfers in - - 134,806 -
Transfers out - - (4,714,184) -
Change in net position 1,459,103 264,608 (4,779,536) (843)
Net position, beginning of year 5,424,037 1,464,070 4,779,536 92,107
Net position,end of year $ 6,883,140 $ 1,728,678 $ - $ 91,264
156
Local Site �
Remediation
Revolving
Fund Insurance Total
$ 996,625 $ 173,568 $ 30,499,360
- - 681,382
1,252 - 1,991,468
- - 120,386
- 927,942 25,959,702
1,252 927,942 28,752,938
995,373 (754,374) 1,746,422
- 20,857 38,144
995,373 (733,517) 1,784,566
- 733,517 868,323
- - (4,714,184)
995,373 - (2,061,295)
727,719 - 12,487,469
$ 1,723,092 $ - $ 10,426,174
157
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2022
Employee Alcott Central
Benefits Technology Facility Stores
Cash flows from operating activities
Receipts from customers and users $ 26,605,460 $ 1,488,701 $ 672,952 $ 585,684
Payments to vendors (108,241) (808,167) (438,462) (538,120)
Payments for personnel services - (330,565) (279,839) (122,738)
Benefit payments (25,423,009) - - -
Net cash provided by(used in)operating activities 1,074,210 349,969 (45,349) (75,174)
Cash flows from noncapital financing activities
Transfers from other funds - - 134,806 -
Cash flows from capital and related financing activities
Purchase of capital assets - (118,540) - -
Cash flows from investing activities
Investment earnings 17,287 - - -
Net increase(decrease)in cash and
cash equivalents 1,091,497 231,429 89,457 (75,174)
Cash and cash equivalents, beginning of year 8,524,723 706,626 - 75,174
Cash and cash equivalents,end of year $ 9,616,220 $ 938,055 $ 89,457 $ -
Noncash transaction:
The Alcott Facility fund had transfers of$735,017 in capital assets during the year to governmental activities.
The Alcott Facility fund had transfers of$3,979,167 in prepaids during the year to the Capital Projects fund.
158
Local Site �
Remediation
Revolving
Fund Insurance Total
$ 996,625 $ 173,568 $ 30,522,990
(2,355) - (1,895,345)
- - (733,142)
- (927,942) (26,350,951)
994,270 (754,374) 1,543,552
- 733,517 868,323
- - (118,540)
- 20,857 38,144
994,270 - 2,331,479
728,822 - 10,035,345
$ 1,723,092 $ - $ 12,366,824
continued...
159
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended December 31, 2022
Employee Alcott Central
Benefits Technology Facility Stores
Reconciliation of operating income(loss)to net
cash provided by(used in)operating activities
Operating income(loss) $ 1,441,816 $ 264,608 $ (200,158) $ (843)
Adjustments to reconcile operating income(loss)
to net cash provided by(used in) operating activities:
Depreciation expense - 117,246 - 3,140
Change in:
Accounts receivable 20,575 - - (13)
Accrued interest receivable 3,068 - - -
Inventories - 5,557 2,788 (32,951)
Prepaids 22,034 15,565 125,000 4,917
Negative equity in cash
and cash equivalents - - - 7,587
Accounts payable 20,154 (46,704) 72,515 (55,580)
Accrued liabilities 227 731 (15,291) 232
Deposits payable (15,817) - - (1,468)
Claims payable (417,620) - - -
Compensated absences (227) (7,034) (30,203) (195)
Net cash provided by(used in)operating activities $ 1,074,210 $ 349,969 $ (45,349) $ (75,174)
160
Local Site �
Remediation
Revolving
Fund Insurance Total
$ 995,373 $ (754,374) $ 1,746,422
- - 120,386
- (237,254) (216,692)
- - 3,068
- - (24,606)
- 37,034 204,550
- (7,340) 247
(1,103) 24,838 14,120
- - (14,101)
- - (17,285)
- 182,722 (234,898)
- - (37,659)
$ 994,270 $ (754,374) $ 1,543,552
concluded
161
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162
COUNTY OF KALAMAZOO, MICHIGAN
� Custodial Funds
General Custodial Fund — accounts for collected taxes, court fees, and other assets held by the County in a
trustee capacity or as an agent to be distributed to other individuals, private organizations, and other
governments.
Library Trust Fund — accounts for monies collected by circuit and district courts, which are disbursed at the
request of the State of Michigan Library Service to local libraries.
Inmates' Trust Fund — accounts for the receipt and distribution of monies belonging to individuals residing in
the County's corrections facility.
163
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Fiduciary Net Position
Custodial Funds
December 31, 2022
General Library Inmate's
Custodial Trust Trust Total
Assets
Cash and cash equivalents $ 1,623,191 $ 139,499 $ 50,926 $ 1,813,616
Receivables 134,265 - - 134,265
Total assets 1,757,456 139,499 50,926 1,947,881
Liabilities
Undistributed collections 959,010 139,499 - 1,098,509
Net position
Restricted for-
Individuals,organizations
and other governments $ 798,446 $ - $ 50,926 $ 849,372
164
COUNTY OF KALAMAZOO, MICHIGAN
� Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
For the Year Ended December 31, 2022
General Library Inmate's
Custodial Trust Trust Total
Additions
Inmate trust collections $ - $ - $ 1,291,752 $ 1,291,752
Library collections - 309,529 - 309,529
Circuit court trial division collections 799,794 - - 799,794
District court collections 143,737 - - 143,737
Probate court collections 50,578 - - 50,578
County clerk/register of deeds collections 875,266 - - 875,266
Treasurer collections 71,757,484 - - 71,757,484
Sheriff-administration/support collections 94,476 - - 94,476
Other collections 51,748 - - 51,748
Total additions 73,773,083 309,529 1,291,752 75,374,364
Deductions
Inmate trust distributions - - 1,278,387 1,278,387
Library distributions - 309,529 - 309,529
Circuit court trial division distributions 668,220 - - 668,220
Circuit court family division distributions 45 - - 45
District court distributions 143,737 - - 143,737
Probate court distributions 3,023 - - 3,023
County clerk/register of deeds distributions 874,058 - - 874,058
Treasurer distributions 71,548,470 - - 71,548,470
Sheriff-administration/support distributions 94,603 - - 94,603
Other deductions 72,582 - - 72,582
Total deductions 73,404,738 309,529 1,278,387 74,992,654
Change in net position 368,345 - 13,365 381,710
Net position, beginning of year 430,101 - 37,561 467,662
Net position,end of year $ 798,446 $ - $ 50,926 $ 849,372
165
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166
COUNTY OF KALAMAZOO, MICHIGAN
� Component Unit
Drainage Districts— The Drainage Districts consist of multiple individual districts created for alleviating drainage
problems and is under the control of the County Drain Commissioner. Each drainage district accounts for the
construction, maintenance, and financing costs associated with its drain program. Each individual district is a
separate legal entity with power to assess the benefiting communities, including the County and the State of
Michigan for road drainage. The County is a direct beneficiary of the service provided and its employees run the
day-to-day operations. In addition,the County often pledges its full faith and credit for the long-term debt of the
drainage districts. Based on the recommendations of the Michigan Department of Treasury, the County has
determined that it would be misleading to exclude this entity from the County reporting entity.
Lake Level— The County Drain Commissioner also administers the activity reported in the County's Lake Level
Fund, as permitted by Act 451 PA 1994, as amended, (MCL 324.30701 et al.). Lake level projects establish the
lake levels for inland lakes and perform construction and maintenance related to maintaining the established
levels. Projects may be funded through the levying of special assessments or by issuing debt, and the County is a
direct beneficiary of the services provided.
Brownfield Redevelopment Authority — The Brownfield Redevelopment Authority (the "Brownfield") was
established to review and approve plans for business development within designated areas of the County where
property was once contaminated. Property tax revenues from the "captured" portion of these properties are
restricted to pay for site clean-up expenditures and future development depending on the development plan
adopted for each project. Funding is provided through tax increment financial, federal and state grants, and
General Fund appropriations.The County Board appoints the governing body of the Brownfield.
167
COUNTY OF KALAMAZOO, MICHIGAN
� Balance Sheet
Drainage Districts Component Unit
December 31, 2022
Assets
Cash and cash equivalents $ 1,358,931
Accounts receivable 614,693
Special assessments receivable 1,797,371
Total assets $ 3,770,995
Liabilities
Accounts payable $ 284,920
Advance from primary government 306,481
Total liabilities 591,401
Deferred inflows of resources
Unavailable revenue-special assessment receivable 1,640,210
Fund balance
Unassigned 1,539,384
Total liabilities,deferred inflows of
resources and fund balance $ 3,770,995
168
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Fund Balance of Governmental Fund
to Net Position of Component Unit
Drainage Districts Component Unit
December 31, 2022
Fund balance-governmental fund $ 1,539,384
Amounts reported for component unit 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 fund statements.
Capital assets not being depreciated 98,912
Capital assets being depreciated, net 5,649,454
Certain assets, such as assessments receivable from local units, are not due and
receivable in the current period and therefore are offset with deferred inflows of
resources in the fund statement.
Deferred special assessments receivable 1,640,210
Certain liabilities, such as notes payable, are not due and payable in the current period,
and therefore are not reported in the funds.
Notes payable (1,381,215)
Accrued interest on long-term debt (17,003)
Net position of component unit $ 7,529,742
169
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Revenues, Expenditures
and Change in Fund Balance
Drainage Districts Component Unit
For the Year Ended December 31, 2022
Revenues
Other $ 487,041
Interest 6,944
Totalrevenues 493,985
Expenditures
Current:
Public works 99,436
Debt service:
Principal 319,293
Interest expense 39,845
Total expenditures 458,574
Change in fund balance 35,411
Fund balance, beginning of year 1,503,973
Fund balance, end of year $ 1,539,384
170
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Net Change in Fund Balance of Governmental Fund
to Change in Net Position of Component Unit
Drainage Districts Component Unit
For the Year Ended December 31, 2022
Net change in fund balance-governmental fund $ 35,411
Amounts reported for component unit in the statement of activities are different because:
Governmental funds report capital outlays 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 assets purchased/constructed 98,912
Depreciation expense (170,273)
Special assessments receivable are long-term in nature and are collectable over several
years. However,the current receipts are reflected as revenues on the fund statements.
Net change in deferred special assessments receivable (354,563)
Note proceeds provide current financial resources to governmental funds in the period
issued, but issuing notes increases long-term liabilities in the statement of net position.
Repayment of note principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position.
Principal payments on long-term debt 319,293
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 payable on long-term debt 3,735
Change in net position of governmental activities $ (67,485)
171
COUNTY OF KALAMAZOO, MICHIGAN
� Balance Sheet
Lake Level Districts Component Unit
December 31, 2022
Assets
Cash and cash equivalents $ 11,944
Receivables:
Accounts 13,260
Totalassets $ 25,204
Fund balance
Unassigned $ 25,204
172
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Fund Balance of Governmental Fund
to Net Position of Component Unit
Drainage Districts Component Unit
December 31, 2022
Fund balance-governmental fund $ 25,204
Amounts reported for component unit 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 fund statements.
Capital assets not being depreciated 340,985
Certain liabilities, such as notes payable, are not due and payable in the current period,
and therefore are not reported in the funds.
Notes payable (400,000)
Net position of component unit $ (33,811)
173
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Revenues, Expenditures
and Change in Fund Balance
Lake Level Districts Component Unit
For the Year Ended December 31, 2022
Revenues
Other $ 271
Interest 284
Totalrevenues 555
Expenditures
Capital outlay 190,396
Change in fund balance (189,841)
Fund balance, beginning of year 215,045
Fund balance, end of year $ 25,204
174
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Net Change in Fund Balance of Governmental Fund
to Change in Net Position of Component Unit
Drainage Districts Component Unit
For the Year Ended December 31, 2022
Net change in fund balance-governmental fund $ (189,841)
Amounts reported for component unit in the statement of activities are different because:
Governmental funds report capital outlays 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 assets purchased/constructed 340,985
Change in net position of governmental activities $ 151,144
175
COUNTY OF KALAMAZOO, MICHIGAN
� Balance Sheet
Brownfield Redevelopment Authority Component Unit
December 31, 2022
Assets
Cash and cash equivalents $ 6,610,772
Investments 989,409
Accounts receivable 500,961
Due from other governments 3,356
Total assets $ 8,104,498
Liabilities
Accounts payable $ 895,770
Deferred inflows of resources
Property taxes levied for subsequent period 453,310
Fund balance
Unassigned 6,755,418
Total liabilities,deferred inflows of
resources and fund balance $ 8,104,498
176
COUNTY OF KALAMAZOO, MICHIGAN
� Reconciliation
Fund Balance of Governmental Fund
to Net Position of Component Unit
Brownfield Redevelopment Authority Component Unit
December 31, 2022
Fund balance-governmental fund $ 6,755,418
Amounts reported for component unit in the statement of net position are different because:
Certain liabilities, such as loans payable, are not due and payable in the current period,
and therefore are not reported in the funds.
Direct borrowings/placements- Loans payable (1,344,173)
Net position of component unit $ 5,411,245
177
COUNTY OF KALAMAZOO, MICHIGAN
� Statement of Revenues, Expenditures
and Change in Fund Balance
Brownfield Redevelopment Authority Component Unit
For the Year Ended December 31, 2022
Revenues
Taxes $ 720,417
Charges for services 2,500
Intergovernmental 92,172
Investment earnings 30,883
Totalrevenues 845,972
Expenditures
Current-
Community and economic development 2,450,260
Change in fund balance (1,604,288)
Fund balance, beginning of year 8,359,706
Fund balance, end of year $ 6,755,418
178
STATISTICAL SECTION
179
This page intentionally left blank.
180
COUNTY OF KALAMAZOO, MICHIGAN
� Statistical Section Table of Contents
This part of the County's Annual Comprehensive Financial Report presents detailed information to assist
the user in understanding what the financial statements, note disclosures and required supplementary
information say about the overall economic condition of the County of Kalamazoo, Michigan.
Pa�e
Financial Trends These schedules contain trend information to help the reader
Tables 1-4 understand and evaluate how the County's financial condition,
performance and well-being have changed over time. 182
Revenue Capacity These schedules contain information to help the reader assess the
Tables 5-8 County's ability to generate its most significant local revenue
source, the property tax. 192
Debt Capacity These schedules present information to help the reader assess the
Tables 9- 12 affordability of the County's current levels of outstanding debt and
its ability to issue additional debt in the future. 198
Demographic and These schedules present various demographic and economic
Economic Information indicators to help the reader understand the environment within
Tables 13- 15 which the County operates and how they affect the County's
financial activities. 204
Operating Information These schedules contain information about the County's
Tables 16- 17 operations and resources to help the reader understand how the
information in the County's financial report relates to the services
the County provides and the activities it performs. 208
181
COUNTY OF KALAMAZOO, MICHIGAN
� Net Position By Component
Last Ten Fiscal Years
2022 2021 2020 2019
Governmental activities
Net investment in capital assets $ 88,290,754 $ 74,296,286 $ 73,348,642 $ 70,585,884
Restricted 31,186,072 40,368,492 34,364,467 32,267,283
Unrestricted 79,237,328 55,356,653 42,186,601 28,678,958
Total governmental activities $ 198,714,154 $ 170,021,431 $ 149,899,710 $ 131,532,125
Business-type activities
Net investment in capital assets $ 50,457,926 $ 47,084,190 $ 48,609,105 $ 50,239,227
Restricted 176,733 496,020 406,349 442,752
Unrestricted 25,034,621 24,680,661 23,748,794 23,414,065
Total business-type activities $ 75,669,280 $ 72,260,871 $ 72,764,248 $ 74,096,044
Primary government
Net investment in capital assets $ 138,748,680 $ 121,380,476 $ 121,957,747 $ 120,825,111
Restricted 31,362,805 40,864,512 34,770,816 32,710,035
Unrestricted 104,271,949 80,037,314 65,935,395 52,093,023
Total primary government $ 274,383,434 $ 242,282,302 $ 222,663,958 $ 205,628,169
Source: County of Kalamazoo,Michigan,Office of Finance.
Note:GA56 Statement No. 68 was implemented for the year ended December 31,2015.This resulted in presentation of the County's net
pension liability on the statement of net position.Prior years were not restated.
Certain restatements and reclassifications were made in 2016.Prior years were not restated.
GASB Statement No. 75 was implemented for the year ended December 31, 2017.This resulted in presentation of the County's net OPEB
liability on the statement of net position.Prior years were not restated.
GASB Statement No. 84 was implemented for the year ended December 31, 2019.This resulted in certain activity previously reported in
agency funds being included in governmental activities.Prior years were not restated.
182
Table 1-Unaudited
2018 2017 2016 2015 2014 2013
$ 67,501,240 $ 66,358,000 $ 67,512,686 $ 60,182,534 $ 54,014,762 $ 43,130,177
31,190,162 34,422,473 32,393,370 22,862,531 36,523,766 7,707,379
22,064,271 18,886,165 34,649,904 41,640,330 38,866,094 51,652,911
$ 120,755,673 $ 119,666,638 $ 134,555,960 $ 124,685,395 $ 129,404,622 $ 102,490,467
$ 47,143,684 $ 48,141,803 $ 47,755,499 $ 48,993,268 $ 49,480,694 $ 50,504,667
430,619 432,165 366,757 459,843 247,565 -
22,523,158 22,567,806 27,412,103 27,650,978 28,891,477 32,634,972
$ 70,097,461 $ 71,141,774 $ 75,534,359 $ 77,104,089 $ 78,619,736 $ 83,139,639
$ 114,644,924 $ 114,499,803 $ 115,268,185 $ 109,175,802 $ 103,495,456 $ 93,634,844
31,620,781 34,854,638 32,760,127 23,322,374 36,771,331 7,707,379
44,587,429 41,453,971 62,062,007 69,291,308 67,757,571 84,287,883
$ 190,853,134 $ 190,808,412 $ 210,090,319 $ 201,789,484 $ 208,024,358 $ 185,630,106
183
COUNTY OF KALAMAZOO, MICHIGAN
� Change in Net Position
Last Ten Fiscal Years
2022 2021 2020 2019
Expenses
Governmental activities:
General government $ 21,973,983 $ 8,899,301 $ 12,923,845 $ 18,399,236
Public safety 33,995,442 33,872,354 31,581,494 28,291,340
Public works 505,596 552,800 550,334 465,388
Health and welfare 31,259,614 30,909,234 30,072,723 30,875,354
Cultural and recreation 4,367,262 4,390,610 2,844,492 4,549,433
Legislative - - - -
Judicial 31,392,758 25,476,207 26,235,706 30,175,753
Community and economic development 1,250,111 1,473,348 2,339,133 588,647
Interest and fiscal charges 484,419 1,578,623 668,516 715,789
125,229,185 107,152,477 107,216,243 114,060,940
Business-type activities:
Airport operations 7,144,431 6,468,754 6,805,031 7,516,636
Local government public works financing 1,926,288 857,769 147,766 156,643
Other enterprise funds 265,575 286,217 350,722 -
9,336,294 7,612,740 7,303,519 7,673,279
Total primary government expenses 134,565,479 114,765,217 114,519,762 121,734,219
Program revenues
Governmental activities:
Charges for services:
General government 1,390,512 5,733,465 4,521,633 4,429,880
Public safety 2,548,722 2,553,407 2,850,195 3,502,946
Public works 59,215 54,005 46,365 42,911
Health and welfare 1,727,419 1,670,830 1,742,937 1,869,719
Cultural and recreation 1,188,564 1,082,374 571,523 1,212,077
ludicial 3,548,171 3,187,275 3,075,590 3,600,923
Community and economic development 2,943,193 257,903 233,988 205,258
Operating grants and contributions:
General government 7,195,387 6,652,214 7,770,676 5,376,480
Public safety 5,057,700 5,450,135 6,270,022 4,819,175
Public works - 75,385 92,829 -
Health and welfare 13,972,415 14,273,986 14,170,234 14,305,227
Cultural and recreation 52,642 38,915 62,265 101,554
Judicial 10,914,033 7,937,784 8,221,140 10,742,701
Community economic development 93,273 90,654 77,834 -
Capital grants and contributions - - - -
50,691,246 49,058,332 49,707,231 50,208,851
184
Table 2-Unaudited
2018 2017 2016 2015 2014 2013
$ 13,146,316 $ 12,005,684 $ 18,745,016 $ 21,807,060 $ 17,791,407 $ 18,178,504
33,251,992 29,226,541 30,068,549 26,082,119 25,452,319 26,770,373
440,731 458,479 223,444 493,776 843,526 118,527
32,503,422 28,358,828 25,352,602 30,666,561 28,763,908 33,943,631
4,566,708 4,294,714 4,614,096 5,029,523 4,690,557 4,746,386
- - 932,316 789,219 1,032,729 915,035
24,545,359 23,306,159 20,181,383 19,884,101 20,157,134 19,913,091
868,624 803,110 637,206 331,984 178,482 162,897
755,701 1,020,546 1,082,933 1,329,290 1,268,294 1,334,369
110,078,853 99,474,061 101,837,545 106,413,633 100,178,356 106,082,813
7,177,992 6,865,096 6,811,127 8,119,278 7,144,340 7,231,919
164,390 182,021 201,631 - - -
357,654 1,135,113 1,546,620 816,195 630,876 812,633
7,700,036 8,182,230 8,559,378 8,935,473 7,775,216 8,044,552
117,778,889 107,656,291 110,396,923 115,349,106 107,953,572 114,127,365
3,657,793 3,480,241 3,432,129 4,839,529 4,953,679 5,264,150
3,335,737 3,034,532 3,597,799 2,556,031 2,029,458 2,189,115
46,450 50,545 - 371,576 108,770 112,768
1,822,398 1,851,619 2,225,346 1,825,814 1,685,714 1,699,642
1,226,658 1,231,210 1,199,359 3,763,599 3,524,463 3,331,511
3,648,823 3,548,605 3,826,966 4,121,357 4,066,792 4,523,285
210,050 230,077 - - - -
4,371,800 5,145,180 4,966,044 5,638,554 5,019,816 4,210,224
4,672,491 4,243,117 3,085,903 1,302,264 1,390,921 1,573,156
- 84,124 198,805 186,508 79,247 118,350
15,896,804 13,669,745 12,435,279 13,019,722 17,251,266 21,826,508
204,220 168,242 106,217 2,640,112 2,562,781 2,551,873
5,369,723 5,442,305 5,979,336 8,342,056 7,584,795 7,179,923
5,000 5,000 - - - 80,115
- - 689,000 - - -
44,467,947 42,184,542 41,742,183 48,607,122 50,257,702 54,660,620
continued...
185
COUNTY OF KALAMAZOO, MICHIGAN
� Change in Net Position
Last Ten Fiscal Years
2022 2021 2020 2019
Business-type activities:
Charges for services:
Airport operations $ 3,512,637 $ 3,482,701 $ 1,728,077 $ 5,545,334
Delinquent tax collection and administration 2,019,324 1,862,493 1,783,118 1,777,053
Local government public works financing 115,225 138,375 147,682 156,448
Other enterprise funds 418,212 674,305 231,215 -
Operating grants and contributions:
Airport operations 6,066,995 784,715 3,072,704 260,671
Delinquent tax collection and administration - 36,074 39,640 81,017
Local government public works financing 237 - 23 160
Other enterprise funds - - - -
Capital grants and contributions:
Airport operations 331,021 911,306 805,864 5,678,979
12,463,651 7,889,969 7,808,323 13,499,662
Total primary government program revenues 63,154,897 56,948,301 57,515,554 63,708,513
Net(expense)revenue
Governmental activities (74,537,939) (58,094,145) (57,509,012) (63,852,089)
Business-type activities 3,127,357 277,229 504,804 5,826,383
Total primary government net expense (71,410,582) (57,816,916) (57,004,208) (58,025,706)
General revenues and other changes in
net position
Governmental activities:
Property taxes 77,347,010 68,241,673 60,826,553 58,788,815
Coronavirus State and Local Recovery funds 10,270,054 - - -
Opioid settlement 5,566,729 - - -
State revenue sharing 5,633,015 5,457,862 4,155,631 5,332,503
Lodging excise taxes 3,495,596 2,741,031 1,605,240 3,127,316
Unrestricted investment earnings 445,396 91,534 1,971,051 2,398,950
Gain on sale of capital assets 90,086 - 319,735 -
Other revenues 693,839 903,160 5,161,787 2,901,343
Transfers in (311,063) 780,606 1,836,600 1,827,800
Total governmental activities 103,230,662 78,215,866 75,876,597 74,376,727
Business-type activities:
Unrestricted investment earnings(loss) (30,011) - - -
Other - - - -
Transfers-internal activities 311,063 (780,606) (1,836,600) (1,827,800)
Total business-type activities 281,052 (780,606) (1,836,600) (1,827,800)
Total primary government 103,511,714 77,435,260 74,039,997 72,548,927
Changes in net position
Governmental activities 28,692,723 20,121,721 18,367,585 10,524,638
Business-type activities 3,408,409 (503,377) (1,331,796) 3,998,583
Total primary government changes in net position $ 32,101,132 $ 19,618,344 $ 17,035,789 $ 14,523,221
Source: County of Kalamazoo,Michigan,Finance Office.
Note:Certain restatements and reclassifications were made in 2016.Prior years were not restated.
186
Table 2-Unaudited
2018 2017 2016 2015 2014 2013
$ 4,523,803 $ 4,393,811 $ 4,295,639 $ 4,336,589 $ 4,616,801 $ 4,578,069
1,677,671 1,866,637 1,772,140 1,832,230 1,987,138 2,586,938
164,367 117,267 201,631 - - -
918,589 1,100,003 875,502 1,128,377 1,243,266 1,856,636
39,694 75,057 6,381 - 1,212,558 127,989
90,272 56,302 15,098 - - -
96 135 35 - - -
- - - 249,649 - -
1,091,831 3,401,193 1,881,974 1,440,882 1,538,535 640,768
8,506,323 11,010,405 9,048,400 8,987,727 10,598,298 9,790,400
52,974,270 53,194,947 50,790,583 57,594,849 60,856,000 64,451,020
(65,610,906) (57,289,519) (60,095,362) (57,806,511) (49,920,654) (51,422,193)
806,287 2,828,175 489,022 52,254 2,823,082 1,745,848
(64,804,619) (54,461,344) (59,606,340) (57,754,257) (47,097,572) (49,676,345)
54,047,666 52,375,761 51,866,549 49,166,240 51,140,600 49,321,723
5,292,086 5,255,201 5,204,061 - - -
3,068,301 2,851,544 2,920,184 - - -
852,631 876,523 595,652 503,800 1,784,898 311,871
- 270,213 - - - -
1,588,657 1,698,019 1,664,583 1,537,244 1,647,760 651,375
1,850,600 6,892,300 1,883,400 1,880,000 7,614,391 1,830,609
66,699,941 70,219,561 64,134,429 53,087,284 62,187,649 52,115,578
- - - 41,636 12,932 22,464
- - - 37,500 - -
(1,850,600) (6,892,300) (1,883,400) (1,880,000) (7,614,391) (1,830,609)
(1,850,600) (6,892,300) (1,883,400) (1,800,864) (7,601,459) (1,808,145)
64,849,341 63,327,261 62,251,029 51,286,420 54,586,190 50,307,433
1,089,035 12,930,042 4,039,067 (4,719,227) 12,266,995 693,385
(1,044,313) (4,064,125) (1,394,378) (1,748,610) (4,778,377) (62,297)
$ 44,722 $ 8,865,917 $ 2,644,689 $ (6,467,837) $ 7,488,618 $ 631,088
concluded
187
COUNTY OF KALAMAZOO, MICHIGAN
� Fund Balances,Governmental Funds
Last Ten Fiscal Years
2022 2021 2020 2019
General fund
Nonspendable $ 391,479 $ 383,917 $ 601,626 $ 572,641
Restricted 2,504,073 2,500,000 2,500,000 2,500,000
Committed 647,656 656,046 651,914 4,048,723
Assigned - - - -
Unassigned 39,695,700 42,581,886 35,742,705 31,324,324
Total general fund 43,238,908 46,121,849 39,496,245 38,445,688
All other governmental funds
Nonspendable 51,687 30,106 16,238 14,515
Restricted 39,711,727 69,136,007 7,018,073 7,003,174
Committed - - - 78,050
Assigned 36,177,445 33,701,094 28,666,903 19,309,141
Unassigned(deficit) - - - -
Total all other governmental funds 75,940,859 102,867,207 35,701,214 26,404,880
Total fund balance for governmental funds $ 119,179,767 $ 148,989,056 $ 75,197,459 $ 64,850,568
Source: County of Kalamazoo,Michigan,Office of Finance.
Certain restatements and reclassifications were made in 2016.Prior years were not restated.
GASB Statement No.84 was implemented in 2019.This resulted in certain activity previously reported in agency funds being included
in governmental activities.Prior years were not restated.
188
Table 3-Unaudited
2018 2017 2016 2015 2014 2013
$ 1,149,741 $ 379,290 $ 488,478 $ 303,118 $ 145,027 $ 157,879
2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
2,532,014 2,664,077 2,715,700 7,894,020 3,475,421 3,859,384
- - - 290,500 2,600,000 329,500
27,203,921 27,217,070 27,816,125 23,634,426 23,371,325 21,838,815
33,385,676 32,760,437 33,520,303 34,622,064 32,091,773 28,685,578
36,506 10,469 133,368 262,488 46,853 206,773
4,479,432 3,973,926 3,885,784 1,023,454 533,873 5,166,830
- - - 9,246,358 19,158,599 16,496,564
21,279,104 21,112,748 12,435,363 - - -
- - - (58,582) - (169,288)
25,795,042 16,454,515 10,473,718 19,739,325 21,700,879 23,908,045
$ 59,180,718 $ 49,974,818 $ 45,095,782 $ 51,831,098 $ 50,386,457 $ 51,774,049
189
COUNTY OF KALAMAZOO, MICHIGAN
� Change in Fund Balances,Governmental Funds
Last Ten Fiscal Years
2022 2021 2020 2019
Revenues
Taxes $ 80,594,561 $ 71,025,351 $ 62,262,526 $ 61,985,133
Licenses and permits 1,553,221 1,738,728 1,541,745 1,643,723
Intergovernmental 52,751,902 38,135,155 40,223,675 39,986,269
Charges for service 11,001,524 11,861,989 10,589,601 12,110,945
Fines and forfeitures 843,671 931,627 898,737 1,076,875
Investment earnings 445,396 91,534 1,971,051 2,398,950
Contributions,grants and reimbursements 436,617 1,841,780 596,956 691,371
Other 5,181,859 5,629,585 5,173,935 2,933,514
Total revenues 152,808,751 131,255,749 123,258,226 122,826,780
Expenditures
General government 24,160,366 14,410,996 13,229,357 13,705,116
Public safety 35,668,401 33,485,202 29,826,601 29,865,105
Public works 473,712 526,559 493,133 381,619
Health and welfare 31,194,603 31,595,333 31,236,379 30,152,368
Cultural and recreation 3,800,796 3,323,408 2,239,382 3,833,161
Legislative - - - -
Judicial 30,096,369 26,469,312 26,171,000 28,468,018
Community economic development 2,246,824 1,786,738 2,565,341 790,096
Oth er 68,283 161,842 1,115,572 1,740,948
Debt service:
Pri nci pa I 1,290,000 1,190,000 1,195,000 1,145,000
Principal-leases 287,021 - - -
Interest and fiscal charges 782,665 822,956 869,074 914,106
Bond issuance costs - 708,848 - -
Capital outlay 55,438,867 17,908,072 5,912,091 6,748,526
Total expenditures 185,507,907 132,389,266 114,852,930 117,744,063
Excess of revenues over(under)expenditures (32,699,156) (1,133,517) 8,405,296 5,082,717
Other financing sources(uses)
Transfers in 35,432,435 24,444,522 29,910,223 16,134,418
Transfers out (32,632,654) (24,119,446) (28,548,604) (15,827,618)
Proceeds from sale of capital assets 90,086 8,470 579,976 28,519
Issuance of notes - - - -
Issuance of bonds - 71,750,000 - -
Issuance of refunding bonds - - - -
Premium on bond - 2,841,568 - -
Payments to refunded bond escrow agent - - - -
Total other financing sources(uses) 2,889,867 74,925,114 1,941,595 335,319
Net change in fund balances $ (29,809,289) $ 73,791,597 $ 10,346,891 $ 5,418,036
Debt service as a percentage of
noncapital expenditures 1.8% 1.8% 1.9% 1.8%
Source: County of Kalamazoo,Michigan,Office of Finance.
190
Table 4-Unaudited
2018 2017 2016 2015 2014 2013
$ 56,880,817 $ 55,239,703 $ 54,891,462 $ 52,101,773 $ 50,607,197 $ 51,733,873
1,473,617 1,249,929 1,258,556 1,218,025 1,119,636 1,050,273
34,981,053 33,190,373 31,158,359 32,043,570 35,028,706 37,284,230
11,329,314 11,184,560 11,843,020 10,410,652 9,657,487 9,943,390
1,116,455 965,614 1,076,752 1,316,244 1,357,351 1,584,425
852,631 876,523 595,652 731,250 1,784,898 311,871
831,071 822,541 817,286 683,063 521,043 921,577
1,617,180 1,724,745 1,767,854 1,939,829 2,268,477 1,321,630
109,082,138 105,253,988 103,408,941 100,444,406 102,344,795 104,151,269
14,006,428 12,896,809 14,767,659 14,506,746 13,565,337 13,276,576
30,020,726 28,044,049 28,274,715 25,199,083 24,427,363 25,342,943
366,015 430,249 211,382 493,772 843,528 118,528
29,566,561 28,068,429 25,191,336 30,710,052 28,877,376 33,470,275
3,837,456 3,530,468 3,959,008 4,189,750 3,783,331 3,930,816
- - 935,399 797,279 1,032,729 915,035
21,292,995 20,837,174 19,548,291 19,154,467 19,375,297 18,440,279
865,198 775,210 650,000 331,984 178,482 162,897
2,402,022 67,192 945,646 - 923,111 1,399,324
1,045,000 1,140,000 1,080,000 1,605,000 1,490,000 1,755,000
953,907 928,271 1,130,518 1,341,322 1,307,725 1,367,857
- 250,885 - - - -
3,924,409 2,526,916 3,300,479 15,960,665 12,702,849 7,190,933
108,280,717 99,495,652 99,994,433 114,290,120 108,507,128 107,370,463
801,421 5,758,336 3,414,508 (13,845,714) (6,162,333) (3,219,194)
14,660,709 24,857,342 17,511,053 15,695,110 21,998,555 12,952,105
(14,205,980) (23,183,587) (15,676,367) (13,890,269) (14,391,581) (11,120,503)
66,988 538,730 17,688 - - -
- - - 150,000 - -
- - - 5,000,000 - -
- 19,390,000 - - - -
- 3,030,652 - 155,557 - -
- (22,508,711) - - - -
521,717 2,124,426 1,852,374 7,110,398 7,606,974 1,831,602
$ 1,323,138 $ 7,882,762 $ 5,266,882 $ (6,735,316) $ 1,444,641 $ (1,387,592)
1.9% 2.1% 2.3% 3.1% 2.6% 3.1%
191
COUNTY OF KALAMAZOO, MICHIGAN Table 5-Unaudited
. Assessed and Estimated Actual Value of Taxable Property�a�
Last Ten Fiscal Years
State Equalized Real Property Value(a)
(b)
Total
Direct
Fiscal Tax
Year Agricultural Commercial Industrial Residential Personal Total Rate
2013 $ 246,429,582 $ 1,494,605,525 $ 363,764,345 $ 5,419,836,318 $ 901,028,023 $ 8,425,663,793 63695
2014 260,740,862 1,536,258,273 376,652,416 5,583,276,707 874,725,038 8,631,653,296 63601
2015 278,782,491 1,569,670,300 381,032,065 5,857,974,999 915,603,263 9,003,063,118 6.4890
2016 298,493,875 1,617,143,141 399,137,804 6,147,579,563 670,976,890 9,133,331,273 6.4663
2017 314,205,704 1,791,444,752 441,009,523 6,446,770,891 656,559,953 9,649,990,823 6.4420
2018 333,502,116 1,912,116,583 434,847,395 6,636,198,436 640,101,811 9,956,766,341 6.7653
2019 328,446,799 2,079,513,788 434,818,350 7,079,917,979 655,834,791 10,578,531,707 6.7631
2020 330,606,231 2,326,235,900 465,439,650 7,586,881,125 665,952,503 11,375,115,409 73614
2021 331,597,775 2,340,501,150 490,927,550 8,065,825,737 641,999,275 11,870,851,487 8.0028
2022 350,492,400 2,400,817,500 510,446,350 8,617,217,828 676,435,503 12,555,409,581 7.9685
Taxable Real Property Value(a)
(b)
Total
Direct
Fiscal Tax
Year Agricultural Commercial Industrial Residential Personal Total Rate
2013 $ 125,192,900 $ 1,389,983,754 $ 345,318,005 $ 5,108,027,139 $ 899,131,746 $ 7,867,653,544 6.3695
2014 129,398,410 1,403,033,284 356,358,958 5,197,236,563 873,525,166 7,959,552,381 63601
2015 131,035,680 1,444,832,170 358,203,022 5,323,405,225 913,393,709 8,170,869,806 6.4890
2016 132,631,977 1,430,404,974 372,677,644 5,420,542,336 670,550,960 8,026,807,891 6.4663
2017 133,787,037 1,471,168,974 405,890,405 5,576,598,604 656,293,152 8,243,738,172 6.4420
2018 136,926,976 1,543,182,165 391,590,521 5,795,151,687 639,889,884 8,506,741,233 6.7653
2019 140,721,483 1,624,267,839 391,532,797 6,041,928,253 655,672,342 8,854,122,714 6.7631
2020 145,807,349 1,706,485,656 409,528,356 6,283,873,425 665,805,811 9,211,500,597 73614
2021 150,084,351 1,744,131,167 433,236,647 6,518,075,380 641,890,584 9,487,418,129 8.0028
2022 154,983,154 1,819,571,158 451,187,284 6,908,672,259 676,429,694 10,010,843,549 7.9685
�a� Property is assessed at the legal market value determined by the local assessor's office.
�b� Per$1,000 of value.
Source: County of Kalamazoo,Michigan,Equalization Department.
Note: Property is assessed annually. In Michigan,the proportion of real and tangible personal property not exempt by law is assessed at 50%of
true cash value.
192
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193
COUNTY OF KALAMAZOO, MICHIGAN
� Property Tax Rates- Direct and Overlapping Governments
Last Ten Fiscal Years
Year Taxes Are Payable
2022 2021 2020 2019
County direct rates:
Operating 4.6318 4.6514 4.6608 4.6810
Law enforcement 1.4380 1.4380 1.4409 1.4472
Juvenile home debt 0.1613 0.1685 0.1620 0.1851
Housing assistance fund 0.7453 0.7485 0.0993 0.0998
Senior millage 0.3462 0.3477 0.3484 0.3500
9-1-1 0.6459 0.6487 0.6500 0.0000
Total county direct rate 7.9685 8.0028 7.3614 6.7631
Kalamazoo County
Transportation Authority 0.3110 0.3124 0.3131 0.3145
Central County Transportation 0.8956 0.7500 0.7470 0.7500
City rates:
Galesburg 13.0000 12.0000 12.0000 9.8118
Kalamazoo 13.8000 13.8000 13.8000 13.8000
Parchment 16.4701 16.6854 16.7239 16.7239
Portage 10.6400 10.6400 10.6400 10.6400
Township rates 0.7643-11.0313 0.7692-11.2928 0.7739-11.4912 0.7782-11.5912
Village rates 9.5000-15.6327 9.5000-15.7939 9.5000-15.8178 9.5000-15.8527
Intermediate school rates 3.9507-6.9853 3.9649-7.0129 3.9783-7.2893 3.9783-6.4028
Local school rates 21.0000-28.5500 21.0000-28.5500 22.1400-28.5500 22.0000-27.6000
Library rates 0.4825-3.8999 0.4878-3.9117 0.4929-3.9213 0.4955-3.9487
Community college rates:
Glen Oaks 2.7109 2.7186 2.7249 2.7249
Kalamazoo Valley 2.7802 2.7918 2.7970 2.8089
Kellogg 3.6109 3.6136 3.6136 3.6136
State education tax rates 6.0000 6.0000 6.0000 6.0000
Source: County of Kalamazoo, Michigan, Equalization Department.
Note: Rates are stated in dollars per one thousand of state equalized or taxable valuation.
194
Table 6- Unaudited
Year Taxes Are Payable
2018 2017 2016 2015 2014 2013
4.6810 4.6810 4.6871 4.6871 4.6871 4.6871
1.447 2 1.447 2 1.4491 1.4491 1.4491 1.4491
0.1873 0.2140 0.2301 0.2528 0.2239 0.2333
0.0998 0.0998 0.1000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
6.7653 6.4420 6.4663 6.4890 6.3601 6.3695
0.3145 0.3145 0.4000 0.4000 0.4000 0.4000
0.7500 0.7500 0.0000 0.0000 0.0000 0.0000
9.8118 9.8118 9.8118 9.8118 9.8118 9.8512
13.8000 13.8000 21.0705 20.8205 20.8205 20.8205
16.7239 16.7239 16.7239 16.7239 16.6772 16.6377
10.8205 10.9205 10.9256 10.9256 10.9256 10.7778
0.7835-11.5912 0.78250-11.4891 0.7839-9.4785 0.7860-9.7199 0.7860-8.9691 0.7860-8.9691
9.0000-15.8257 9.0000-15.8527 9.0000-15.9005 9.5000-15.9005 9.5000-15.9005 9.5000-15.9005
2.9783-5.9469 2.7500-6.2057 2.9783-6.4066 2.9783-6.4066 2.9783-6.2057 2.6837-6.2057
22.0000-27.1000 21.9900-27.1000 21.9600-27.1000 22.3400-27.5900 22.3400-26.7796 22.1700-27.1000
0.5000-3.9487 0.4913-3.9487 0.4952-3.9583 0.4985-3.9583 0.4985-3.9583 0.5000-3.9583
2.7249 2.7249 2.7249 2.7249 2.7249 2.7249
2.8089 2.8089 2.8135 2.8135 2.8135 2.8135
3.6136 3.6136 3.6136 3.6136 3.6136 3.6136
6.0000 6.0000 6.0000 6.0000 6.0000 6.0000
195
COUNTY OF KALAMAZOO, MICHIGAN Table 7-Unaudited
� Principal Property Taxpayers
Current Year and Nine Years Ago
2022 2013
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Taxpayer Valuation Rank Valuation Valuation Rank Valuation
Consumers Energy Company $ 267,236,422 1 2.62% $ 135,518,623 2 1.69%
Pfizer,Pharmacia&Upjohn 123,388,401 2 1.21% 407,316,337 1 5.09%
Zoetis 58,660,292 3 0.57%
Edward Rose Etal 49,503,346 4 0.48% 30,405,131 5 0.38%
Stryker Corporation 46,981,064 5 0.46% 48,866,100 3 0.61%
Michigan Electric Transmission 40,295,463 6 0.39%
19 Props,LLC etal 39,564,408 7 0.39%
MIMG LXVI Drakes Pond,LLC/Etc. 29,748,090 8 0.29%
Catalyst Development 29,205,050 9 0.29% 23,441,711 10 0.29%
Enbridge Energy 28,474,491 10 0.28%
KaiserAluminum 31,471,633 4 0.39%
Graphic Packaging 30,347,000 6 0.38%
Target/Marshall Fields 26,209,250 7 0.33%
Meijer/Goodwill 24,719,326 8 0.31%
Connecticut General Life Ins.Co. 24,478,607 9 0.31%
Source:County of Kalamazoo,Michigan,Equalization Department.
196
COUNTY OF KALAMAZOO, MICHIGAN Table 8-Unaudited
� Property Taxes,Levies and Collections
Last Ten Fiscal Years
Collected Within the Fiscal Year of
the Levy Total Collections to Date
Taxes�a�
Levied Collections in
Fiscal forthe Percentage Subsequent Percentage
Year Fiscal Year Amount of Levy Years Amount of Levy
2013 $ 50,113,019 $ 44,716,135 89.23% $ 1,481,275 $ 46,197,410 92.19%
2014 50,623,549 45,259,899 89.40% 1,391,118 46,651,017 92.15%
2015 53,020,774 46,356,761 87.43% 1,152,593 47,509,354 89.61%
2016 51,903,748 45,776,972 88.20% 1,292,095 47,069,067 90.69%
2017 53,106,161 47,055,256 88.61% 1,130,814 48,186,070 90.74%
2018 57,550,656 48,267,616 83.87% 1,318,492 49,586,108 86.16%
2019 59,881,317 50,673,837 84.62% 1,324,530 51,998,367 86.84%
2020 68,285,775 51,704,088 75.72% 1,476,704 53,180,792 77.88%
2021 75,925,910 52,709,265 69.42% 1,654,559 54,363,824 71.60%
2022 79,771,407 54,635,761 68.49% 1,794,109 56,429,870 70.74%
�a� Taxes levied for the fiscal year included the operating levy,law enforcement levy,juvenile home debt service,housing assistance
levy,senior millage and 911 millage.
Source: County of Kalamazoo,Michigan, Treasurer's Office,Equalization Reports and Office of Finance.
Note: The information in this schedule relates to the County's own property levies,and does not include those it collects on behalf
of other governments.
197
COUNTY OF KALAMAZOO, MICHIGAN Table 9-Unaudited
� Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type
Governmental Activities Activities
General General Total Percentage of Debt
Fiscal Obligation Obligation Outstanding Personal Per
Year Bonds Leases Bonds Debt Income Population Capita
2013 $ 31,544,067 $ - $ 7,311,034 $ 38,855,101 0.39% 256,725 $ 151.35
2014 30,037,657 - 6,761,387 36,799,044 0.35% 258,818 142.18
2015 33,713,617 - 6,095,783 39,809,400 0.36% 260,263 152.96
2016 25,330,000 - 12,002,011 37,332,011 0.32% 261,654 142.68
2017 24,175,956 - 10,783,394 34,959,350 0.29% 262,985 132.93
2018 22,928,913 - 9,854,776 32,783,689 0.25% 264,870 123.77
2019 21,581,870 - 8,876,158 30,458,028 0.23% 265,066 114.91
2020 20,184,827 - 7,872,539 28,057,366 0.20% 261,670 107.22
2021 93,328,945 - 6,850,069 100,179,014 0.66% 261,108 383.67
2022 91,741,918 145,631 57,108,029 148,995,578 0.98% 261,108 570.63
Source: County of Kalamazoo,Michigan,Office of Finance.
Note: 2022 percentage of Personal Income and Per Capita calculated using 2021 personal income and 2021 per capita data,which is
the most recent available.
Note: In 2016,debt obligations were reclassed between governmental and business-type activities,prior years have not been restated.
198
COUNTY OF KALAMAZOO, MICHIGAN Table 10-Unaudited
� Ratios of Net Bonded Debt Outstanding
Last Ten Fiscal Years
General Bonded Debt Outstanding
6overnmental Business-Type Less: Percentage
Activities Activities Amounts of Actual
General General Total Restricted Net Bonded Value of
Fiscal Obligation Obligation Primary to Repaying Debt Taxable Per
Year Bonds Bonds Government Principal Outstanding Property Capita
2013 $ 31,544,067 $ 7,311,034 $ 38,855,101 $ - $ 38,855,101 0.49% 151.35
2014 30,037,657 6,761,387 36,799,044 - 36,799,044 0.46% 142.18
2015 33,713,617 6,095,783 39,809,400 236,488 39,572,912 0.48% 152.05
2016 25,330,000 12,002,011 37,332,011 75,219 37,256,792 0.46% 142.39
2017 24,175,956 10,783,394 34,959,350 77,707 34,881,643 0.42% 132.64
2018 22,928,913 9,854,776 32,783,689 63,577 32,720,112 0.38% 123.53
2019 21,581,870 8,876,158 30,458,028 130,100 30,327,928 034% 114.42
2020 20,184,827 7,872,539 28,057,366 157,876 27,899,490 0.30% 105.25
2021 93,328,945 6,850,069 100,179,014 - 100,179,014 1.06% 382.84
2022 91,741,918 57,108,029 148,849,947 - 148,849,947 1.49% 570.07
Source: County of Kalamazoo,Michigan,Office of Finance.
Note: 2022 percentage of Personal Income and Per Capita calculated using 2021 personal income and 2021 per capita data,which is the
most recent available.
Note: In 2016,debt obligations were reclassed between governmental and business-type activities,prior years have not been restated.
199
COUNTY OF KALAMAZOO, MICHIGAN Table 11-Unaudited
� Computation of Direct and Overlapping Debt
December 31,2022
Estimated
Net Estimated Share of
General Percentage Direct and
Obligation Applicable Overlapping
Governmental Unit Debt to County Debt
Libraries
Allegan $ 5,515,000 35.92% $ 1,980,988
Otsego 1,290,000 33.81% 436,149
Portage 6,185,000 100.00% 6,185,000
Total libraries 8,602,137
Townships
Kalamazoo 4,950,000 100.00% 4,950,000
Ross 4,229,000 100.00% 4,229,000
Texas 6,395,000 100.00% 6,395,000
Total townships 15,574,000
Cities
Galesburg 725,000 100.00% 725,000
Kalamazoo 150,905,000 100.00% 150,905,000
Portage 50,389,127 100.00% 50,389,127
Total cities 202,019,127
Villages
Augusta 135,000 100.00% 135,000
Schoolcraft 255,000 100.00% 255,000
Vicksburg 3,634,000 100.00% 3,634,000
Total villages 4,024,000
School districts
Climax Scotts 10,630,365 86.15% 9,158,059
Colon 4,750,000 1.58% 75,050
Comstock 49,685,000 100.00% 49,685,000
Galesburg Augusta 15,079,053 100.00% 15,079,053
Gull Lake 75,375,000 83.25% 62,749,688
Kalamazoo 203,381,667 100.00% 203,381,667
Lawton 22,282,137 0.64% 142,606
Mattawan 93,306,555 66.07% 61,647,641
Mendon 16,441,290 5.82% 956,883
Otsego 74,124,933 42.05% 31,169,534
Parchment 32,509,398 100.00% 32,509,398
Plainwell 70,631,804 36.35% 25,674,661
Portage 194,380,000 100.00% 194,380,000
Schoolcraft 36,136,297 100.00% 36,136,297
Vicksburg 31,770,000 97.58% 31,001,166
Total school districts 753,746,703
continued...
200
COUNTY OF KALAMAZOO, MICHIGAN Table 11-Unaudited
� Computation of Direct and Overlapping Debt
December 31,2022
Estimated
Net Estimated Share of
General Percentage Direct and
Obligation Applicable Overlapping
Governmental Unit Debt to County Debt
Community colleges
Glen Oaks $ 7,568,000 0.61% $ 46,165
Kalamazoo Valley Community College 5,780,000 94.28% 5,449,384
Kellogg Community College 9,355,000 0.35% 32,743
Total community colleges 5,528,291
Intermediate school districts
Allegan 1,470,000 12.00% 176,400
Kalamazoo RESA 2,510,000 0.53% 13,303
St.Joseph 3,775,000 14.97% 565,118
Total intermediate school districts 754,821
Subtotal,overlapping debt 990,249,078
County direct debt,governmental activities 91,887,549
Total direct and overlapping debt $1,082,136,627
concluded
Source: County of Kalamazoo,Michigan,Office of Finance.
Note: Percentage of overlap based on assessed property values.
2�1
COUNTY OF KALAMAZOO, MICHIGAN
� Computation of Legal Debt Margin for General Obligation Bonds
Last Ten Fiscal Years
2022 2021 2020 2019
Legal debt margin
Assessed value of property(SEV) $ 12,555,409,581 $ 11,870,851,487 $ 11,375,115,409 $ 10,578,531,707
Debt limit,10%of assessed value(SEV)
(constitutional debt limit) 1,255,540,958 1,187,085,149 1,137,511,541 1,057,853,171
Amount of debt applicable to limit:
Debt issues for purpose of
the County functions only:
Building authority 87,165,000 90,570,000 20,615,000 22,415,000
Brownfield redevelopment authority - - - -
Debt issues for benefit of
local improvements:
CMH capital improvements - 4,275,000 4,475,000 4,650,000
Road Commission 55,235,000 - - -
Water 135,000 180,000 225,000 275,000
Sewage - - 135,000 270,000
Drainage - - - -
Total net debt applicable to limit 142,535,000 95,025,000 25,450,000 27,610,000
Legal debt margin $ 1,113,005,958 $ 1,092,060,149 $ 1,112,061,541 $ 1,030,243,171
Total net debt applicable to limit
as a percentage of debt limit 11.35% 8.00% 2.24% 2.61%
Source: County of Kalamazoo,Michigan,Equalization Department&Office of Finance.
Note: Prior to Board of Review actions.
Certain restatements and reclassifications were made in 2016.Prior years were not restated.
2�2
Table 12-Unaudited
2018 2017 2016 2015 2014 2013
$ 9,956,766,341 $ 9,649,990,823 $ 9,133,331,273 $ 9,003,063,118 $ 8,631,653,296 $ 8,425,663,793
995,676,634 964,999,082 913,333,127 900,306,312 863,165,330 842,566,379
24,165,000 25,815,000 30,805,366 32,830,000 33,805,000 35,200,000
- - - 150,000 - -
4,800,000 4,900,000 5,139,183 5,000,000 - -
325,000 375,000 425,000 475,000 525,000 570,000
405,000 540,000 962,462 1,470,000 2,005,000 2,535,000
- - - 145,000 190,000 235,000
29,695,000 31,630,000 37,332,011 40,070,000 36,525,000 38,540,000
$ 965,981,634 $ 933,369,082 $ 876,001,116 $ 860,236,312 $ 826,640,330 $ 804,026,379
2.98% 3.28% 4.09% 4.45% 4.23% 4.57%
203
COUNTY OF KALAMAZOO, MICHIGAN Table 13 - Unaudited
� Demographic Statistics
Last Ten Fiscal Years
Fiscal Per Capita Unemployment
Year Population Personal Income Personal Income Percentage Rate
2013 256,725 $ 10,055,548,000 $ 39,169 7.1%
2014 258,818 10,658,638,000 41,182 5.6%
2015 260,263 11,207,427,000 43,062 3.2%
2016 261,654 11,703,476,000 44,729 3.4%
2017 262,985 12,199,565,000 46,389 3.9%
2018 264,870 12,905,261,000 48,723 3.3%
2019 265,066 13,118,941,000 49,493 2.7%
2020 261,670 13,938,547,000 52,403 4.5%
2021 261,108 15,281,103,000 58,524 3.8%
2022 N/A N/A N/A 3.8%
Source: Michigan Department of Technology, Management and Budget, U.S. Census Bureau, and U.S. Department of
Commerce-eureau of Economic Analysis.
N/A Data is Not Available
204
COUNTY OF KALAMAZOO, MICHIGAN Table 14-Unaudited
� Principal Employers
Current and Nine Years Ago
2022 2013
Percentage Percentage
of Total of Total
County County
Industry Employees�l� Rank Employment Employees�l� Rank Employment
Health Care and Social Assistance 22,711 1 14.66% 20,357 1 13.96%
Manufacturing 20,458 2 13.20% 17,671 2 12.12%
Retail trade 15,819 3 10.21% 14,847 3 10.18%
Accommodation and food services 10,570 4 6.82% 12,226 4 8.39%
Professional,scientific,and
technical services 8,650 5 5.58% 7,204 9 4.94%
Local government 8,567 6 5.53% 8,254 6 5.66%
Other services,except public
administration 8,424 7 5.44% 8,059 8 5.53%
Administrative,support and waste
management remediation services 8,293 8 5.35% 9,677 5 6.64%
Construction 7,888 9 5.09%
Real estate and rental and leasing 7,809 10 5.04% 6,535 10 4.48%
Finance and insurance 8,216 7 5.64%
Tota I 119,189 113,046
Total full-time and part-time
County employment 154,941 145,786
�l� Source: U.S.Department of Commerce, Bureau of Economic Analysis,CA25N-Total full-time and part-time employment by NAICS industry
for Kalamazoo County.
205
COUNTY OF KALAMAZOO, MICHIGAN
� Full-Time Equivalent Government Employees by Function/Program
Last Ten Fiscal Years
2022 2021 2020 2019
Function/program
General government 126.4 120.7 112.0 116.8
Public safety 255.8 249.8 249.8 248.8
Health and welfare 220.0 220.0 221.7 218.7
Cultural and recreation 15.0 16.0 16.0 16.0
Legislative - - - -
Judicial 270.7 270.4 268.4 268.2
Other 25.1 24.4 23.4 22.4
Airport 22.0 21.5 21.5 21.5
Total 935.0 922.8 912.7 912.3
Source: County of Kalamazoo, Michigan, Office of Finance.
206
Table 15 - Unaudited
2018 2017 2016 2015 2014 2013
112.3 135.5 140.7 143.9 143.2 138.8
252.6 251.6 248.6 244.3 241.8 241.8
221.6 226.3 223.8 217.0 208.1 203.8
16.0 15.6 17.5 17.6 17.6 18.4
- 6.8 6.8 6.3 6.3 6.3
269.4 225.1 224.5 224.3 226.5 224.0
23.8 23.8 15.6 15.0 16.0 16.0
21.5 21.5 21.5 21.5 21.0 22.0
917.2 906.2 899.0 889.9 880.5 871.1
207
COUNTY OF KALAMAZOO, MICHIGAN
� Operating Indicators by Function/Program
Last Ten Fiscal Years
2022 2021 2020 2019
Function/program
General government:
Revenue from sale of maps, aerial
directories $ - $ 913 $ 3,018 $ 1,758
Revenue from soil erosion and
permits issued 58,315 53,255 44,715 40,625
Public safety:
Jail bookings 6,580 6,352 6,442 11,740
Average daily population 298 231 223 378
Judicial:
8th district court caseloads 36,080 33,697 34,728 45,507
Airport:
Based aircraft 127 120 120 111
Enplanements 72,693 73,984 54,671 156,010
Source: County of Kalamazoo, Michigan, Office of Finance and individual County departments.
208
Table 16 - Unaudited
2018 2017 2016 2015 2014 2013
$ 1,605 $ 1,467 $ 2,442 $ 1,848 $ 4,146 $ 5,056
43,725 49,995 32,340 34,158 24,107 30,285
12,642 11,865 11,957 12,024 12,171 12,973
385 359 371 391 400 404
46,161 46,303 43,999 49,214 50,640 54,898
111 111 111 110 110 109
158,154 151,662 160,131 124,355 134,175 127,559
209
COUNTY OF KALAMAZOO, MICHIGAN
� Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2022 2021 2020 2019
Function/program
Public safety:
Correction facility capacity 482 482 482 482
Juvenile home capacity 64 64 64 64
Cultural and recreation:
Parks 6 6 6 6
County fairgrounds 1 1 1 1
Judicial:
Courthouse buildings 3 3 3 3
Airport operations:
Number of runways 3 3 3 3
Number of hangars 84 84 84 84
Source: County of Kalamazoo, Michigan, Office of Finance and individual County departments
210
Table 17 - Unaudited
2018 2017 2016 2015 2014 2013
482 482 482 482 327 327
64 64 64 64 64 64
6 6 6 6 6 6
1 1 1 1 1 1
3 3 3 3 3 3
3 3 3 3 3 3
84 84 84 84 84 84
211
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212
SINGLE AUDIT ACT COMPLIANCE
213
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214
�ehmann
INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE AND THE
SUPPLEMENTAL SCHEDULE OF EXPENDITURES BY SERVICE
June 26, 2023
Honorable Members of the
Board of Commissioners
of the County of Kalamazoo, Michigan
Kalamazoo, Michigan
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 Kalamazoo, Michigan (the "County"), as of and for the year ended
December 31, 2022, and the related notes to the financial statements, which collectively comprise the
County's basic financial statements. We issued our report thereon dated June 26, 2023, which
contained unmodified opinions on those financial statements. Our report includes a reference to other
auditors. Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the basic financial statements. The accompanying schedule of expenditures of
federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Additionally, the supplemental schedule of
expenditures by service has also been presented for additional analysis. These schedules 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 schedule of expenditures of federal awards and the supplemental
schedule of expenditures by service are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
�-�. L�C
HLB TMEGL06ALADVISORVeei.��r
AND ACCOUNTING NETWORK
� � � � ' � �./ � � � �• • • � � ��
215
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Expenditures of Federal Awards
For the Year Ended December 31,2022
Assistance
Listing Passed Pass-through/ Total Federal
Federal Agency/Cluster/Program Title Number Through Grantor Number Subawards Expenditures
U.S.Department of Agriculture
Child Nutrition Cluster:
School Breakfast Program 10.553 MDE 211970 $ - $ 6,562
School Breakfast Program 10.553 MDE 221971 - 14,778
School Breakfast Program 10.553 MDE 231970 - 7,258
- 28,598
National School Lunch Program:
Section 11-Free and Reduced 10.555 MDE 221960 - 12,838
Section 11-Free and Reduced 10.555 MDE 231960 - 14,220
Section 11-Free and Reduced 10.555 MDE 221961 - 25,947
- 53,005
Total Child Nutrition Cluster - 81,603
Special Supplemental Nutrition Program for Women,
Infants,and Children(WIC)-Resident Services 10.557 MDHHS 20230138/50035 - 304,391
Special Supplemental Nutrition Program for Women,
Infants,and Children(WIC)-Resident Services 10.557 MDHHS 20220346/50035 - 915,717
Special Supplemental Nutrition Program for Women,
Infants,and Children(WIC)-Breastfeeding 10.557 MDHHS 20230138/50022/50035 - 29,926
Special Supplemental Nutrition Program for Women,
Infants,and Children(WIC)-Breastfeeding 10.557 MDHHS 20220346/50022/50035 - 94,813
- 1,344,847
Total U.S.Department of Agriculture - 1,426,450
U.S.Department of Justice
COVID-19-Coronavirus Emergency Supplemental Funding 16.034 MSP 2020-VD-BX-0434 - 3,900
Crime Victim Assistance:
Victims of Violence-Assistance Program 16.575 MDHHS E20211537-00 - 99,608
Drug Court Discretionary Grant Program:
BJA FY 22 OJJDP-Juvenile and Family Drug Courts 16.585 Direct 2018-DC-BX-0130 - 84,919
State Criminal Alien Assistance Program(SCAAP) 16.606 Direct 2019APBX0607 - 28,840
Edward Byrne Memorial Justice Assistance Grant Program:
Adult Men's Drug Treatment Court 2021/2022 16.738 MDCGP 72159-SCAO-2022 - 79,713
Adult Men's Drug Treatment Court 2022/2023 16.738 MDCGP 72159-SCAO-2023 - 37,731
Adult Women's Drug Treatment Court 2021/2022 16.738 MDCGP 72159-SCAO-2022 - 48,585
Adult Women's Drug Treatment Court 2022/2023 16.738 MDCGP 72159-SCAO-2023 - 11,689
Kalamazoo County Sheriffs Department Byrne Justice 16.738 COK 2017-H2675-MI-DJ - 20,200
- 197,918
Total U.S.Department of Justice - 415,185
U.S.Department of Trensportation
Airport Improvement Program:
COVID-19-Airport Improvement Program 20.106 Direct 3-26-0052-047-2020 - 3,169,076
COVID-19-AirportlmprovementProgram 20.106 Direct 3-26-0052-048-2021 - 634,760
COVID-19-AirportlmprovementProgram 20.106 Direct 3-26-0052-050-2021 - 2,150,063
- 5,953,899
Highway Safety Cluster:
State and Community Highway Safety:
Strategic Traffic Enforcement Program-
Police Traffic Services 20.600 MSP PT21-84 - 116,163
Interagency Hazardous Materials Public Sector
Training&Planning Grants:
Hazardous Materials Emergency Preparedness
Planning Program 20.703 MSP HM-HMP-0558-19-01-00 - 3,919
Total U.S.Department of Transportation - 6,073,981
continued...
216
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Expenditures of Federal Awards
For the Year Ended December 31,2022
Assistance
Listing Passed Pass-through/ Total Federal
Federal Agency/Cluster/Program Title Number Through Grantor Number Subawards Expenditures
U.S.Department of Treasury
COVID-19-Coronavirus State and Local Fiscal Recovery Funds 21.027 Direct n/a $ - $ 10,270,054
COVID-19-Coronavirus State and Local Fiscal Recovery Funds 21.027 COK n/a - 12,900
Total U.S.Department of Treasury - 10,282,954
U.S.Environmental Protection Agency
Drinking Water State Revolving Fund Cluster:
Capitalization Grants for Drinking Water State
Revolving Funds:
Nontransient NCW System FY2021/2022 66.468 EGLE F597548719 - 200
Operator Assistance NCW System FY 2022/2023 66.468 EGLE FS97548718 - 274
Operator Assistance NCW System FY 2021/2022 66.468 EGLE FS97548719 - 3,711
- 4,185
Brownfield Assessment Grants:
Hazardous Substance Assessment Funds and
Petroleum Assessment Funds 66.818 Direct OOE03048 - 80,839
Total U.S.Environmental Protection Agency - 85,024
U.S.Department of Health and Human Services
Special Programs for the Aging-Title VII,Chapter 3-
Programs for Prevention of Elder Abuse,Neglect,
and Exploitation:
Title VII EAP Services 93.041 AASA E20224105-00 - 6,445
Title VII EAP Services 93.041 AASA E20234257-00 - 2,150
- 8,595
Special Programs for the Aging-Title VII,
Chapter 2-Long Term Care Ombudsman
Services for Older Individuals:
Title Vll/A LTC Ombudsman 93.042 AASA E20224105-00 - 13,201
Title Vll/A LTC Ombudsman 93.042 AASA E20234257-00 - 2,523
- 15,724
Special Programs for the Aging-Title III,
Part D-Disease Prevention and Health
Promotion Services:
Title III D Services 93.043 AASA E20224105-00 - 27,865
Title III D Services 93.043 AASA E20224105-00 - 2,235
- 30,100
Aging Cluster:
Special Programs for the Aging-Title III,
Part B-Grants for Supportive Services and
Senior Centers:
Expanding Older Adult Access 93.044 Direct 2101MIVACS - 310
Expanding Older Adult Access 93.044 Direct E20234568-001 - 40
TitIeIIIB-Administration 93.044 AASA E20224105-00 - 19,142
Title III B-Services(Program Development) 93.044 AASA E20224105-00 - 33,700
Title III B-Services 93.044 AASA E20224105-00 13,585 13,585
TitlelllB-Administration 93.044 AASA E20234257-00 - 6,373
Title III B-Services(Program Development) 93.044 AASA E20234257-00 - 11,130
continued...
21�
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Expenditures of Federal Awards
For the Year Ended December 31,2022
Assistance
Listing Passed Pass-through/ Total Federal
Federal Agency/Cluster/Program Title Number Through Grantor Number Subawards Expenditures
U.S.Department of Health and Human Services(Continued)
Aging Cluster(Concluded):
Special Programs for the Aging-Title III,
Part B-Grants for Supportive Services and
Senior Centers(Concluded):
Title III B-Services 93.044 AASA E20234257-00 $ 3,903 $ 3,903
Title III B-Supported Services-Care Management 93.044 AASA E20224105-00 - 116,318
Title III B-Services 93.044 AASA E20234257-00 - 38,218
Title III B-Supported Services 93.044 AASA E20224105-00 - 950
Title III B-Services 93.044 AASA E20234257-00 - 267
Title III B-Supported Services 93.044 AASA E20224105-00 - 2,400
Title III B-Services 93.044 AASA E20234257-00 - 558
Title III B-Supported Services 93.044 AAA36 R3b2020-5111 - 1,828
Title III B-Supported Services 93.044 AAA3C 2019-1597 - 1,500
Title III B-Services 93.044 AAA3B R3b2020-5111 - 609
Title III B-Services 93.044 AAA3C 2020-2309 - 500
Title III B-Services 93.044 AASA E20224105-00 - 9,250
Title III B-Services 93.044 AASA E20234257-00 - 1,982
Title VII-Ombudsman 93.044 AASA E20224105-00 - 17,000
Title III B-Services(HLP) 93.044 AASA E20224105-00 - 26,548
Title III B-Supported Services-Care Management 93.044 AASA E20224105-00 - 62,110
17,488 368,221
Special Programs for the Aging-Title III,
Part C-Nutrition Services:
Home Del'd Meal IIIC2 93.045 AASA E20224105-00 - 1,647
Home Del'd Meal IIIC2 93.045 AASA E20234257-00 - 702
Title III C1 Administration 93.045 AASA E20224105-00 - 24,797
Title III C2 Administration 93.045 AASA E20224105-00 - 14,445
Congregate Meals IIIC1 93.045 AASA E20224105-00 190,056 190,056
Home Del'd Meal IIIC2 93.045 AASA E20224105-00 97,044 97,044
Title III C1 Administration 93.045 AASA E20234257-00 - 8,279
Title III C2 Administration 93.045 AASA E20234257-00 - 4,651
Title III C15ervices 93.045 AASA E20234257-00 72,974 72,974
Title III C2 Services 93.045 AASA E20234257-00 39,996 39,996
400,070 454,591
Nutrition Services Incentive Program:
Area Agency on Aging-USDA Senior Citizen Meals 93.053 AASA E20224105-00 6,648 6,648
Area Agency on Aging-USDA Senior Citizen Meals 93.053 AASA E20234257-00 31,805 31,805
Area Agency on Aging-USDA Senior Citizen Meals 93.053 AASA E20224105-00 52,593 52,593
91,046 91,046
Total Aging Cluster 508,604 913,858
National Family Caregiver Support:
Title III,Part E:
Title III E-Administration 93.052 AASA E20224105-00 - 9,139
Title III E-NFCSP 93.OSZ AASA E20224105-00 2,700 2,700
Title III E-Administration 93.052 AASA E20234257-00 - 3,050
Title III E-NFCSP 93.052 AASA E20234257-00 300 300
Title III E-Care Management 93.052 AASA E20224105-00 - 42,144
Title III E-Caregiver Counseling 93.052 AASA E20224105-00 - 2,548
Title III E-Care Management 93.052 AASA E20234257-00 - 18,305
Title III E-Caregiver Counseling 93.052 AASA E20234257-00 - 328
Title III E-Services 93.052 AASA E20224105-00 - 652
Title III E-Information and Assistance 93.052 AASA E20224105-00 - 35,223
Title III E-Information and Assistance 93.052 AASA E20234257-00 - 7,863
3,000 122,252
continued...
21$
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Expenditures of Federal Awards
For the Year Ended December 31,2022
Assistance
Listing Passed Pass-through/ Total Federal
Federal Agency/Cluster/Program Title Number Through Grantor Number Subawards Expenditures
U.S.Department of Health and Human Services(Continued)
Public Health Emergency Preparedness:
Laboratory Services Bio-FY 22 93.069 MDHHS 20230138/251184 $ - $ 124
Laboratory Services Bio-FY 23 93.069 MDHHS 20200072 - 377
- 501
Medicare Enrollment Assistance Program 93.071 MMAP 2101MIMISH - 1,400
Project Grants and Cooperative Agreements for
Tuberculosis Control Programs:
TB Control-FY22/23 93.116 MDHHS 20230138/251165 - 130
TB Control-FY21/22 93.116 MDHHS 20220346/251165 - 2,296
- 2,426
Substance Abuse and Mental Health Service Admin:
SAMHSA Treatment Drug Court-Men's 2021/2022 93.243 Direct n/a - 162,196
SAMHSA Treatment Drug Court-Men's 2022/2023 93.243 Direct n/a - 94,096
SAMHSA Treatment Drug Court-Women's 2021/2022 93.243 Direct n/a - 88,143
SAMHSA Treatment Drug Court-Women's 2022/2023 93.243 Direct n/a - 38,576
383,011
Immunization Cooperative Agreements:
Immunization Support Grant 93.268 AASA E20214176;4361 - 31,923
Immunization Support Grant 93.268 AASA E20230652-001 - 20
Vaccine Provided(non-cash assistance) 93.268 MDHHS 20220346 - 75,722
Immunization Action Plan-2022/2023 93.268 MDHHS 20230138/251129 - 26,652
Immunization Action Plan-2021/2022 93.268 MDHHS 20220346/251129 - 102,327
Immunizations Fixed Fees-2021/2022 93.268 MDHHS 20220346/251129 - 500
Immunizations Fixed Fees-2022/2023 93.268 MDHHS 20230138/251129 - 400
CSHCS Vaccine Initiative 2021/2022 93.268 MDHHS 20220346/251129 - 2,967
CSHCS Vaccine Initiative 2022/2023 93.268 MDHHS 20230138/251129 - 682
COVID-19-Immunizations 2021/2022 93.268 MDHHS 20220195/251129 - 39,454
COVID-19-Immunizations 2022/2023 93.268 MDHHS 20230183/251129 - 28,014
- 308,661
Epidemiology and Laboratory Capacity for Infectious Diseases:
COVID-19-ELC Covid-19 Regional Lab FY 21/22 93323 MDHHS 20220195/251156 - 120
COVID-19-ELC Covid-19-Infection Prevention FY 21/22 93.323 MDHHS 20220195/251156 - 1,858
COVID-19-ELC Contact Tracing,Investigation,Monitoring FY 21/22 93.323 MDHHS 20220195/251156 - 103,203
COVID-19-ELC Contact Tracing,Investigation,Monitoring FY 22/23 93.323 MDHHS 20230183/251156 - 15,954
- 121,135
State Health Insurance Assistance Program:
State Health Insurance Assistance Program 93.324 MMAP 90SAPG0090-02-00 563 563
State Health Insurance Assistance Program 93.324 MMAP 90SAPG0090-02-00 - 5,065
State Health Insurance Assistance Program 93.324 MMAP EZOZ252Z8-00 - 1,095
State Health Insurance Assistance Program 93.324 MMAP E20225228-00 - 10,765
State Health Insurance Assistance Program 93.324 MMAP 905APG0010-02-00 341 341
State Health Insurance Assistance Program 93324 MMAP 90SAPG0010-02-00 - 5,048
State Health Insurance Assistance Program 93.324 MMAP 90SAPG0010-02-00 - 4,062
State Health Insurance Assistance Program 93324 MMAP 90SAPG0010-02-00 - 270
904 27,209
Title IV-E Kinship Navigator Program:
Families First(FFPSA) 93.471 MDHHS 20220346-90357 - 12,072
Child Support Enforcement(CSE):
Federal Performance Incentive Payment 93.563 MDHHS CSFOCI7-39001 - 273,591
Federal Performance Incentive Payment 93.563 MDHHS CS/FOC17-39001 - 87,256
Medical Support Enforcement 93.563 MDHHS CSFOCI7-39001 - 77,568
continued...
219
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Expenditures of Federal Awards
For the Year Ended December 31,2022
Assistance
Listing Passed Pass-through/ Total Federal
Federal Agency/Cluster/Program Title Number Through Grantor Number Subawards Expenditures
U.S.Department of Health and Human Services(Continued)
Child Support Enforcement(CSE)(Conduded):
Medical Support Enforcement 93.563 MDHHS CSFOCI7-39001 $ - $ 16,784
Child Support Enforcement 93.563 MDHHS CS/FOC17-39001 - 1,088,851
Child Support Enforcement 93.563 MDHHS CS/FOC17-39001 - 416,490
Child Support Enforcement 93.563 MDHHS CSPA17-39002 - 385,691
Child Support Enforcement 93.563 MDHHS CSPA17-39002 - 131,614
- 2,477,845
Grants to States for Access and Visitation Programs 93.597 SCAO SCAO-2022-023 - 2,430
ACA-State Innovation Models:
MI Health Link SHIP/ADRC 93.624 MMAP 111CM5331626 - 9,006
MI Health Link SHIP/ADRC 93.624 MMAP 1J1CM5331626 - 368
- 9,374
Medicaid Cluster:
Medical Assistance Program:
Targeted Case Management 93J78 AASA E20224105-00 3,572
Targeted Case Management 93.778 AASA E20234257-00 - 4,620
Nurse Family Partnership-2022/2023 93.778 MDHHS 20230138/253001 - 37,950
Nurse Family Partnership-2021/2022 93.778 MDHHS 20220346/253001 - 135,212
Medicaid Outreach-NFP-2021/2022 93.778 MDHHS 20220346/253001 - 191,526
CSHCS Outreach and Advocacy-2022/2023 93.778 MDHHS 20230138/253001 - 8,014
CSHCS Outreach and Advocacy-2021/2022 93.778 MDHHS 20220346/253001 - 63,384
Care Coordination Services and Case Management-
CSHCS-2022/2023 93.778 MDHHS 20230138/253001/253002 - 800
Medicaid Outreach-CSHCS-2021/2022 93.778 MDHHS 20220346/253001 - 861
Care Coordination Services and Case Management-
CSHCS-2021/2022 93.778 MDHHS 20220346/253001/253002 - 4,471
Medicaid Outreach 2021/2022 93.778 MDHHS 20220346/253001 - 2,618
Medicaid Outreach 2022/2023 93.778 MDHHS 20230138/253001 - 1,080
CSHCS Medicaid Elevated Blood Lead Case Management-
Management-2022/2023 93.778 MDHHS 20230138/253002 - 132
CSHCS Medicaid Elevated Blood Lead Case Management-
Management-2021/2022 93.778 MDHHS 20220346/253002 - 576
Immunization Michigan Care Improvement Registry 2022/2023 93.778 MDHHS 20230138/253001 - 9,295
Total Medicaid Cluster - 464,111
Maternal,Infant and Early Childhood Home Visiting Program:
Healthy Families America Expansion-2022/2023 93.870 MDHHS 20230138/252300 - 63,795
Healthy Families America Expansion-2021/2022 93.870 MDHHS 20220346/252300 - 232,481
Nurse Family Partnership Services-2022/2023 93.870 MDHHS 20230138/252300 - 5,746
Nurse Family Partnership Services-2021/2022 93.870 MDHHS 20220346/252300 - 35,750
ARP-Healthy Families America Expansion-2022/2023 93.870 MDHHS 20230183/252306 - 2,448
ARP-Healthy Families America Expansion-2021/2022 93.870 MDHHS 20220195/252304 - 8,776
ARP-Nurse Family Partnership Services-2022/2023 93.870 MDHHS 20230183/252306 - 3,960
ARP-Nurse Family Partnership Services-2021/2022 93.870 MDHHS 20220195/252304 - 23,355
- 376,311
National Bioterrorsim Hospital Preparedness Program:
Public Health Emergency Preparedness(PHEP)
10/1/2021-6/30/2022 93.889 MDHHS 20220346/251184 - 35,160
Public Health Emergency Preparedness(PHEP)
7/1/2022-9/30/2022 93.889 MDHHS 20220346/251184 - 83,756
Public Health Emergency Preparedness(PHEP)
10/1/2022-6/30/2023 93.889 MDHHS 20230138/251184 - 28,703
- 147,619
continued...
22�
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Expenditures of Federal Awards
For the Year Ended December 31,2022
Assistance
Listing Passed Pass-through/ Total Federal
Federal Agency/Cluster/Program Title Number Through Grantor Number Subawards Expenditures
U.S.Department of Health and Human Services(Concluded)
Cancer Prevention and Control Programs for State,Territorial,
and Tribal Organizations:
MI Cancer Prevention Control Program 93.898 MDHHS 20220346/251183 $ - $ 136,517
MI Cancer Prevention Control Program 93.898 MDHHS 20230138/251183 - 38,362
- 174,879
Healthy Start Initiative:
Healthy5tart-2021/2022 93.926 Direct H49MC00047-21-00 - 317,729
Healthy Start-2022/2023 93.926 Direct H49MC00047-22-00 - 716,834
- 1,034,563
HIV Prevention-2021/2022 93.940 MDHHS 20220346/251124 - 960
Grants to States for Access and Visitation Programs 93.957 SCAO SCAO-2021-022 - 7,830
Maternal and Child Health Services Block Grant to the States:
MCH Block Grant-FIMR Interviews-FY 22/23 93.994 MDHHS 20230138/252208 - 125
MCH Block Grant-FIMR Interviews-FY 21/22 93.994 MDHHS 20220346/252208 - 375
MCH Block Grant-FIMR Case Abstractions-FY 22/23 93.994 MDHHS 20230138/252208 - 810
MCH Block Grant-FIMR Case Abstractions-FY 21/22 93.994 MDHHS 20220346/252208 - 4,860
MCH Block Grant-Immunizations-Children FY 21/22 93.994 MDHHS 20220346/252208 - 20,785
MCH Block Grant-Immunizations-Other FY 21/22 93.994 MDHHS 20220346/252208 - 7,500
MCH Block Grant-Immunizations-Children FY 22/23 93.994 MDHHS 20230138/252208 - 6,927
MCH Block Grant-Immunizations-Other FY 22/23 93.994 MDHHS 20230138/252208 - 2,500
MCH Block Grant-CSHCS-Other 22/23 93.994 MDHHS 20230138/252208 - 11,249
MCH Block Grant-CSHCS-Children 22/23 93.994 MDHHS 20230138/252208 - 2,500
MCH Block Grant-CSHCS-Children 21/22 93.994 MDHHS 20220346/252208 - 7,500
MCH Block Grant-CSHCS-Other 21/22 93.994 MDHHS 20220346/252208 - 33,751
Care Coordination Services and Case Management 2022/2023 93.994 MDHHS 20230138 - 1,439
Care Coordination Services and Case Management 2021/2022 93.994 MDHHS 20220346/252208 - 13,844
MCH Block Grant-IAP-2022/2023 93.994 MDHHS 20230138/252208 - 3,000
MCH Block Grant-IAP-2021/2022 93.994 MDHHS 20220346/252208 - 9,000
Childhood Lead Poisoning Prevention-2022/2023 93.994 MDHHS 20230138/252208 - 9,945
Childhood Lead Poisoning Prevention-2021/2022 93.994 MDHHS 20220346/252208 - 30,891
MCH Block Grant-Lead-Other 2022/2023 93.994 MDHHS 20230138/252208 - 10,251
MCH Block Grant-Lead-Other 2021/2022 93.994 MDHHS 20220346/252208 - 30,749
- 208,001
Total U.S.Department of Health and Human Services 512,508 6,850,867
U.S.Department of Homeland Security
Boating Safety Financial Assistance:
Marine Safety Program 97.012 MDNR MS21-067 - 24,500
Public Assistance Grants:
COVID-19-Statewide LHD Mobile Vaccine Support 97.036 MDHHS 20220195/251129 - 130,112
Emergency Management Performance Grants:
Emergency Management Performance Grant(PY2020) 97.042 MSP EMC-2020-EP-00005 - 33,171
Total U.S.Department of Homeland Security - 187,783
Total Expenditures of Federal Awards $ 512,508 $ 25,322,244
concluded
See notes to schedule of expenditures of federal awards.
221
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Schedule of Expenditures of Federal Awards
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant
activity of the County of Kalamazoo, Michigan (the "County') under programs of the federal government
for the year ended December 31, 2022. The information in this Schedule is presented in accordance with
the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because
the Schedule presents only a selected portion of the operations of the County, it is not intended to and
does not present the financial position, changes in net position or cash flows of the County.
The County's reporting entity is defined in Note 1 of the County's Financial Statements. The County's
financial statements include the operations of the Kalamazoo County Road Commission and the Central
County Transportation Authority discretely presented component units, which received federal awards
that are not included in the Schedule for the year ended December 31, 2022, as the entities were
separately audited.
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described
in Note 1 to the County's financial statements. Such expenditures are recognized following the cost
principles contained in the Uniform Guidance or other applicable guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the
Schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through entity identifying numbers are presented where available.
2. 10%DE MINIMIS COST RATE
For purposes of charging indirect costs to federal awards,the County has elected not to use the 10 percent
de minimis cost rate as permitted by§200.414 of the Uniform Guidance.
3. OTHER FEDERAL REVENUE
The County is an indirect beneficiary of federal funds that are expended directly by the Michigan
Department of Transportation. These expenditures (which totaled $164,477 for the year ended
December 31, 2022) are not presented on the Schedule, as they will be included in the single audit for the
State of Michigan.
222
COUNTY OF KALAMAZOO, MICHIGAN
� Notes to Schedule of Expenditures of Federal Awards
4. PASS-THROUGH AGENCIES
The County receives certain federal grants as subawards from non-federal entities. Pass-through entities,
where applicable, have been identified in the Schedule with an abbreviation, defined as follows:
Pass-through
Agency
Abbreviation Pass-through Agency Name
AAA36 Area Agency on Aging Region 3B
AAA3C Area Agency on Aging Region 3C
AASA Aging&Adult Services Agency
COK City of Kalamazoo
EGLE Michigan Department of Environment, Great Lakes, and Energy
MDCGP Michigan Drug Court Grant Program
MDHHS Michigan Department of Health and Human Services
MDNR Michigan Department of Natural Resources
MDE Michigan Department of Education
MMAP Michigan Medicare/Medicaid Assistance Program
MSP Michigan State Police
SCAO Michigan State Court Administrative Office
■ ■ ■ ■ ■
223
COUNTY OF KALAMAZOO,MICHIGAN
� Supplemental Schedule of Expenditures by Service
For the Year Ended September 30,2022
Federal Title Title Title Title NFCSP Title Title
Service Category Admin IIIB IIIC-1 IIIC-2 IIID IIIE VII/EAP VIIA NSIP
Care Management $ - $ 131,731 $ - $ - $ - $ 54,971 $ - $ - $ -
Case Coordination/Support - 1,000 - - - - - - -
Information&Assistance - 12,000 - - - 46,348 - - -
Transportation - 3,538 - - - - - - -
Home Injury Control - 2,560 - - - - - - -
Options Counseling - - - - - - - - -
Homemaker - 4,621 - - - - - - -
Home Delivered Meals - - - 135,833 - - - - 57,336
Medication Management - 4,537 - - - - - - -
Personal Care - - - - - - - - -
PERS/Assist Tech&Devices - - - - - - - - -
Respite Care - 5,100 - - - 652 - - -
Congregate Meals - - 242,909 - - - - - 26,309
Legal Assistance - 14,700 - - - - - - -
Adult Day Care - - - - - - - - -
Disease Prevent - - - - 27,865 - - - -
Creating Confident Caregivers - - - - 2,860 - - - -
LTC Ombudsman - 3,200 - - - - 8,594 15,723 -
Caregivercounseling - - - - - 3,000 - - -
Caregiver Supplement - - - - - 3,600 - - -
Program Development - 44,700 - - - - - - -
Nutrition Education - - 1,000 - - - - - -
- 227,687 243,909 135,833 30,725 108,571 8,594 15,723 83,645
Administration 89,413 - - - - - - - -
Total $ 89,413 $ 227,687 $ 243,909 $ 135,833 $ 30,725 $ 108,571 $ 8,594 $ 15,723 $ 83,645
224
Targeted State State State St.Home State St.Alt. State State
Care Mgmt Access In-Home Cong. Del Meals NHO Care MSO Care Mgmt
$ 8,572 S 15,074 S - S - S - S - S - S - S 135,909
- - - - - - - - 1,200
- - 91,201 - - - 30,493 - -
- - - - 250,967 - - - -
- - 36,644 - - - 4,743 - -
- - - - - - 19,517 - -
- - 85,960 - - - 4,453 - -
- - - S,O50 - - - - -
- - - - - 30,216 - 13,269 -
8,572 15,074 213,805 S,O50 250,967 30,216 59,206 13,269 137,109
$ 5,572 $ 15,074 $ 213,805 $ S,O50 $ 250,967 $ 30,216 $ 59,206 $ 13,269 $ 137,109
continued...
225
COUNTY OF KALAMAZOO,MICHIGAN
� Supplemental Schedule of Expenditures by Service
For the Year Ended September 30,2022
Merit Award St.CG St.Respite State State Program Cash In-Kind
Trust Fund Support (Escheat) ANS Admin Income Match Match Totals
Care Management $ - $ - $ - $ 23,507 $ - $ - $ 116,403 $ - $ 486,167
Case Coordination/Support - - - - - - 4,414 - 5,414
Information&Assistance - - - - - - 31,552 - 89,900
Transportation - - - - - - 394 - 3,932
Home Injury Control - - - - - - 334 - 2,894
Options Counseling - - - - - - 663 - 1,863
Homemaker - - - - - - 14,041 - 140,356
Home Delivered Meals - - - - - 23,114 42,979 - 510,229
Medication Management - - - - - - 505 - 5,042
Personal Care - - - - - - 527 - 41,914
PERS/Assist Tech&Devices - - - - - - 2,169 - 21,686
Respite Care 35,412 3,500 21,393 - - - 11,075 - ll0,545
Congregate Meals - - - - - 18,639 27,553 - 320,460
Legal Assistance - - - - - 260 91,712 4,475 111,147
Adult Day Care 24,634 4,279 4,660 - - - 476 - 34,049
Disease Prevent - - - - - - 3,097 - 30,962
CreatingConfidentWregivers - - - - - 600 7,156 - 10,616
LTC Ombudsman - - - - - - 31,503 - 102,505
Caregiver counseling - - - - - - 1,247 - 4,247
Caregiver Supplement - - - - - - 596 - 4,196
Program Development - - - - - - 4,967 - 49,667
Nutrition Education - - - - - - 120 - 1,120
63,046 7,779 26,053 23,507 - 42,613 393,483 4,475 2,148,911
Administration 6,235 769 - - 15,371 - 121,289 - 233,077
Total $ 69,281 $ 5,548 $ 26,053 $ 23,507 $ 15,371 $ 42,613 $ 514,772 $ 4,475 $ 2,381,988
concluded
Note: The supplemental schedule of expenditures by service includes the federal and state grant activity of the County of Kalamazoo,Michigan's Aging program for the fiscal year ended
September 30,2022.As such,the amounts presented above will not agree with or directly reconcile to the amounts reported on the Schedule of Expenditures of Federal Awards for the
year ended December 31,2022.
226
�ehmann
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
June 26, 2023
Honorable Members of the
Board of Commissioners
of the County of Kalamazoo, Michigan
Kalamazoo, Michigan
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, 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 Kalamazoo, Michigan (the
"County"), as of and for the year ended December 31, 2022, and the related notes to the financial
statements, which collectively comprise the County's basic financial statements, and have issued our
report thereon dated June 26, 2023. Our report includes a reference to other auditors who audited the
financial statements of the Kalamazoo County Transportation Authority, Central County Transportation
Authority, Kalamazoo County Road Commission, and the Kalamazoo County Public Housing
Commission, as described in our report on the County's financial statements. This report does not
include the results of the other auditors' testing of internal control over financial reporting or
compliance and other matters that are reported on separately by those auditors. The financial
statements of the Kalamazoo County Transportation Authority and the Kalamazoo County Road
Commission were not audited in accordance with GovernmentAuditing Standards.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the County's
internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal
control.
HLB TMEGL06ALADVISORVeci.��r
AND ACCOUNTING NETWORK
� � � � ' � �./ � � � �• • • � � ��
227
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions,to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness,yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that have not been identified. We did identify certain deficiencies in internal control,
described in the accompanying schedule of findings and questioned costs, as items 2022-001, -002, and -
003 that we consider to be material weaknesses.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County's financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under GovernmentAuditing Standards.
County of Kalamazoo, Michigan's Responses to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the County's
responses to the findings identified in our audit and described in the accompanying schedule of findings
and questioned costs.The County's responses were not subjected to the auditing procedures applied in
the audit of the financial statements and, accordingly,we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
County's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance.Accordingly,this communication is not suitable for any other purpose.
�r'�r.. L-LC
Zzs
�ehmann
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
June 26, 2023
Honorable Members of the
Board of Commissioners
of the County of Kalamazoo, Michigan
Kalamazoo, Michigan
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the compliance of the County of Kalamazoo, Michigan (the "County") with the types of
compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have
a direct and material effect on each of the County's major federal programs for the year ended
December 31, 2022.The County's major federal programs are identified in the summary of auditors' results
section of the accompanying schedule of findings and questioned costs.
The County's basic financial statements include the operations of the Kalamazoo County Road Commission
and the Central County Transportation Authority, which expended certain federal awards that are not
included in the County's schedule of expenditures of federal awards for the year ended December 31, 2022.
Our audit, described below, did not include the operations of the Kalamazoo County Road Commission or
the Central County Transportation Authority because they arranged for separate financial statement audits.
The Kalamazoo County Road Commission did not meet the criteria for a single audit in accordance with the
Uniform Guidance.
In our opinion, the County complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended December 31, 2022.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and
the Uniform Guidance are further described in the Independent Auditors' Responsibilities for the Audit of
Compliance section of our report. �:, �__,,,_, ,.:� ..
HLBqNDACOCOUNTIDNGs EIWOGN
� / � � � � �./ � � � �• • • � � ,�
229
We are required to be independent of the County and to meet our other ethical responsibilities, in
accordance with 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 opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the County's compliance with the
compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the County's
federal programs.
Independent Auditors'Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the County's compliance based on our audit. 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,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance
when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Noncompliance with the compliance requirements referred to above is
considered material, if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the County's
compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance,we:
• exercise professional judgment and maintain professional skepticism throughout the audit.
• identify and assess the risks of material noncompliance, 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 County's compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.
• obtain an understanding of the County's internal control over compliance relevant to the audit in order
to design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the County's internal control over compliance.
Accordingly, no such opinion is expressed.
230
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type
of compliance requirement of a federal program that is less severe than a material weakness in internal
control over compliance,yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Independent Auditors' Responsibilities for the Audit of Compliance section above and was not designed to
identify all deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify
any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined
above. However, material weaknesses or significant deficiencies in internal control over compliance may
exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance.Accordingly, no such opinion is expressed.
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance.Accordingly,this report is not suitable for any other purpose.
,r�.�„�. L�C
231
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2022
SECTION I-SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of report the auditor issued on whether the
financial statements audited were prepared in
accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? X yes no
Significant deficiency(ies) identified? yes X none reported
Noncompliance material to financial statements
noted? yes X no
Federal Awards
Internal control over major programs:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X none reported
Any audit findings disclosed that are required
to be reported in accordance with
2 CFR 200.516(a)? yes X no
Identification of major programs and type of auditors'
report issued on compliance for each major program:
Assistance Listin�Numberls) Name of Federal Pro�ram or Cluster Type of Report
20.106 Airport Improvement Program Unmodified
21.027 Coronavirus State and Local Fiscal
Recovery Funds Unmodified
93.044, 93.045, 93.053 Aging Cluster Unmodified
93.563 Child Support Enforcement Unmodified
Dollar threshold used to distinguish
between Type A and Type B programs: $ 759,667
Auditee qualified as low-risk auditee? X yes no
232
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2022
SECTION II—FINANCIAL STATEMENT FINDINGS
2022-001—Material Audit Adjustments
Finding Type. Material Weakness in Internal Control over Financial Reporting.
Criteria. Management is responsible for maintaining its accounting records in accordance with generally
accepted accounting principles (GAAP).
Condition. During the audit, multiple adjustments were identified in order to properly record year-end balances.
Audit adjustments included the following areas:
• Approximately$897,000 to adjust amounts due from other governments and related revenue
• Approximately$338,000 to adjust taxes receivable and related deferred inflows of resources
• Approximately$211,000 to adjust debt deferred loss on refunding and $182,000 for an unamortized
premium
• Approximately$340,000 to adjust capital assets and related depreciation expense
• Approximately$1,379,000 to adjust cash and undistributed receipts
Cause. This condition was the result of internal controls not detecting all adjustments necessary to properly
record year-end balances.
Effect. As a result of this condition, the County's accounting records were initially misstated by amounts
material to the financial statements.
Recommendation. We recommend that the County prepare, review, and reconcile all year-end schedules that
are used in financial reporting prior to audit fieldwork.
View of Responsible Officials. The Finance Director recognizes and agrees with the findings and
recommendations of the auditors regarding material audit adjustments. The Finance Department will work with
the appropriate administrative personnel in the affected departments to ensure that proper journal entries are
made at year-end prior to audit fieldwork.
233
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2022
2022-002—Reconciliation of Cash and Investments
Finding Type. Material Weakness in Internal Control over Financial Reporting.
Criteria. Timely preparation and review of bank reconciliations will help ensure that all related accounting
transactions are recorded on a timely basis and that all reconciling items are efficiently identified and resolved.
In addition, the State of Michigan recommends that bank reconciliations be completed within approximately six
weeks of each month and year-end.
Condition. We observed that the County was still reconciling cash and investment accounts several months
after fiscal year end, and based on our inquiries and observations noted that the reconciliations were not being
fully completed in a timely manner during the fiscal year. Additionally, we noted that the County needed to
record an adjustment of approximately $160,000 in order to balance cash and investments to the general
ledger.
Cause. This condition appears to be due to the lack of sufficient processes within the Treasurer's department
over cash and investments to ensure that bank reconciliations and investment accounts not being reconciled
timely.
Effect. As a result of this condition, the County is exposed to an increased risk that misstatements or
misappropriations might occur and not be detected by management in a timely manner.
Recommendation. As cash and investment bank account reconciliations are an important internal control to
detect potential misstatements, we recommend that the County complete bank account reconciliations on a
timely basis,and ensure that an independent review of each reconciliation is being completed and documented.
View of Responsible Officials. The Treasurer recognizes and agrees with the findings and recommendations of
the auditors regarding reconciliation of cash and investments. Work is ongoing to resolve the reporting backlogs
in bank and investment reconciliations that, once complete, will allow the department to reconcile both
procedures within the State of Michigan's recommended six-week timeframe. Furthermore, planned process
improvements aim to implement daily bank reconciliation activity to complete these tasks well-in-advance of
the recommended guidelines.
234
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2022
2022-003—Reconciliation of Subsidiary Ledgers
Finding Type. Material Weakness in Internal Control over Financial Reporting.
Criteria. In order to determine whether balances recorded in the general ledger are accurate, the County
should perform periodic reconciliations of subsidiary ledgers and supporting documentation to the underlying
general ledger accounts.
Condition. We observed various audit areas that lacked timely and accurate reconciliation of subsidiary ledgers
and other supporting documentation from the Treasurer's department. These areas included cash and
investments, delinquent taxes receivable, and undistributed receipts.
Cause. This condition was caused by the absence of a standard procedure for reconciling accounts to their
subsidiary detail for the above audit areas on a timely basis.
Effect. As a result of this condition, the County's accounting records were initially misstated by amounts which
in many instances were material or significant to the financial statements. In addition, such unreconciled
balances increase the risk that amounts may be materially misstated, whether by error or fraud, and remain
undetected by management.
Recommendation. We recommend that the County reconcile all balance sheet accounts to subsidiary detail at
least monthly, and follow-up on any variances in a timely manner. All such reconciliations should be
independently reviewed, signed and dated, as evidence of this control.
View of Responsible Officials. The Treasurer agrees with the findings and recommendations of the auditors
regarding reconciliation of subsidiary ledgers. The department will strive to reconcile all treasury-related
balance sheet accounts to the subsidiary detail on a quarterly basis and will follow-up on any variances in a
timely fashion. Planned process improvements aim to reconcile appropriate balance sheet activity on a monthly
basis through workpapers that directly tie to the general ledger. These workpapers, along with their associated
supporting documents,will be compiled and provided to the Finance Director for review.
235
COUNTY OF KALAMAZOO, MICHIGAN
� Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2022
SECTION III—FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None reported.
236
COUNTY OF KALAMAZOO, MICHIGAN
� Summary Schedule of Prior Audit Findings
For the Year Ended December 31, 2022
None reported.
■ ■ ■ ■ ■
237
�P�O�GpUNTy G����
P .L,� � � . � . . � .
YQ'� -'_,`���� �'1.�
June 26, 2023
Rehmann Robson
2330 East Paris Ave SE
Grand Rapids, Michigan 49546
Corrective Action Plan
Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511,the following are
the findings as noted in the County of Kalamazoo, Michigan Single Audit report for the year ended
December 31, 2022, and corrective actions to be completed.
2022-001—Material Audit Adjustments
Auditor Description of Condition and Effect. During the audit, multiple adjustments were identified in
order to properly record year-end balances.As a result of this condition,the County's accounting records
were initially misstated by amounts material to the financial statements.
Auditor Recommendation. We recommend that the County prepare, review, and reconcile all year-end
schedules that are used in financial reporting prior to audit fieldwork.
Corrective Action.The Finance Director recognizes and agrees with the findings and recommendations of
the auditors regarding material audit adjustments. The Finance Department will work with the
appropriate administrative personnel in the affected departments to ensure that proper journal entries
are made at year-end prior to audit fieldwork.
Responsible Person. Ryan Post, Director of Finance
Anticipated Completion Date. December 31, 2023
2022-002—Reconciliation of Cash and Investments
Auditor Description of Condition and Effect. We observed that the County was still reconciling cash and
investment accounts several months after fiscal year end, and based on our inquiries and observations
noted that the reconciliations were not being fully completed in a timely manner during the fiscal year.
Additionally, we noted that the County needed to record an adjustment of approximately $160,000 in
order to balance cash and investments to the general ledger. As a result of this condition, the County is
exposed to an increased risk that misstatements or misappropriations might occur and not be detected
by management in a timely manner.
Auditor Recommendation.As cash and investment bank account reconciliations are an important internal
control to detect potential misstatements, we recommend that the County complete bank account
reconciliations on a timely basis and ensure that an independent review of each reconciliation is being
completed and documented.
� . . � - . . • • • . • . .
Corrective Action. The Treasurer recognizes and agrees with the findings and recommendations of the
auditors regarding reconciliation of cash and investments. Work is ongoing to resolve the reporting
backlogs in bank and investment reconciliations that, once complete, will allow the department to
reconcile both procedures within the State of Michigan's recommended six-week timeframe.
Furthermore, planned process improvements aim to implement daily bank reconciliation activity to
complete these tasks well-in-advance of the recommended guidelines.
Responsible Person.Thomas Whitener,Treasurer
Anticipated Completion Date. December 31, 2023
2022-003—Reconciliation of Subsidiary Led�ers
Auditor Recommendation. We recommend that the County reconcile all balance sheet accounts to
subsidiary detail at least monthly, and follow-up on any variances in a timely manner. All such
reconciliations should be independently reviewed, signed and dated, as evidence of this control.
Corrective Action.The Treasurer agrees with the findings and recommendations of the auditors regarding
reconciliation of subsidiary ledgers. The department will strive to reconcile all treasury-related balance
sheet accounts to the subsidiary detail on a quarterly basis and will follow-up on any variances in a timely
fashion. Planned process improvements aim to reconcile appropriate balance sheet activity on a monthly
basis through workpapers that directly tie to the general ledger. These workpapers, along with their
associated supporting documents, will be compiled and provided to the Finance Director for review.
Responsible Person.Thomas Whitener,Treasurer
Anticipated Completion Date. December 31, 2023
�
Kevin A. Catlin, ounty Administrator/Controller
���
Ryan J. Post, Finance Director