Co M prehensive annual finan C ial repor t

County of Monroe MiChigan

CoMprehensive annual finanCial

report

For Year Ended December 31, 2012

Prepared By:

Monroe County Finance Department

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County of Monroe, Michigan

Year Ended December 31,

2012

Comprehensive Annual Financial

Report

Prepared by: Monroe County Finance Department

Table of Contents

INTRODUCTORY SECTION EXHIBIT PAGE

Letter of Transmittal 3GFOA Certificate of Achievement 10Organizational Chart 11List of Principal Officials 12

FINANCIAL SECTION

Independent Auditors' Report 15

Management's Discussion and Analysis 21

Basic Financial Statements:Government-wide Financial Statements:Statement of Net Position A 33Statement of Activities B 34

Fund Financial Statements:Balance Sheet - Governmental Funds C-1 36Reconciliation - Fund Balances for Governmental Funds

to Net Position of Governmental Activities C-2 38Statement of Revenues, Expenditures, and Changes in Fund Balances -

Governmental Funds C-3 40Reconciliation - Net Changes in Fund Balances of Governmental Funds

to Change in Net Position of Governmental Activities C-4 42

Statements of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual:

General Fund D-1 43County Health Special Revenue Fund D-2 44Revenue Sharing Reserve Special Revenue Fund D-3 45Federal Prisoner Housing Special Revenue Fund D-4 46Senior Citizen Special Revenue Fund D-5 47

Statement of Net Position - Proprietary Funds E-1 48Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Fund E-2 49Statement of Cash Flows - Proprietary Funds E-3 50

Statement of Fiduciary Net Position - Fiduciary Funds F-1 52Statement of Changes in Fiduciary Net Position - Fiduciary Funds F-2 53

Component Unit Financial Statements:Combining Statement of Net Position G-1 54Combining Statement of Activities G-2 56

COUNTY OF MONROE, MICHIGAN

Table of Contents

EXHIBIT PAGENotes to Basic Financial StatementsNote 1 - Summary of Significant Accounting Policies 61Note 2 - Budgets and Budgetary Accounting 69Note 3 - Excess of Expenditures Over Appropriations 70Note 4 - Deposits, Investments, and Securities Lending 71Note 5 - Receivables 80Note 6 - Interfund Receivables, Payables, and Transfers 80Note 7 - Capital Assets 82Note 8 - Long-Term Debt 87Note 9 - Pension Plan 94Note 10 - Post Employment Benefits Other Than Pensions 97Note 11 - Risk Management 106Note 12 - Contingent Liabilities 110Note 13 - Property Taxes 110Note 14 - Invested in Capital Assets Net of Related Debt 111Note 15 - Fund Balances - Governmental Funds 112Note 16 - Fund Deficit 113Note 17 - Restatements 113

Required Supplementary Information:Employees' Retirement System:Schedule of Funding Progress and Employer Contributions H-1 117

Retiree Health Plan:Schedule of Funding Progress and Employer Contributions H-2 118

SUPPLEMENTARY INFORMATION

Combining and Individual Fund Statements and Schedules:

General Fund:Schedule of Revenue and Other Sources - By Source - Budget and Actual I-1 125Schedule of Expenditures and Other Uses - By Activity - Budget and Actual I-2 128

County Health Special Revenue Fund:Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual J 141

Federal Prisoner Housing Special Revenue Fund:Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual K 142

Nonmajor Governmental Funds:Combining Balance Sheet L-1 147Combining Statement of Revenues, Expenditures, and Changes in Fund Balance L-2 148

Nonmajor Special Revenue Funds:Combining Balance Sheet M-1 149Combining Statement of Revenues, Expenditures, and Changes in Fund Balance M-2 152Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual M-3 155


Table of Contents

SUPPLEMENTARY INFORMATION (continued) EXHIBIT PAGENonmajor Enterprise Funds:Combining Statement of Net Position N-1 174Combining Statement of Revenues, Expenses, and Changes in Fund Net Position N-2 176Combining Statement of Cash Flows N-3 178

Internal Service Funds:Combining Statement of Net Position O-1 184Combining Statement of Revenues, Expenses, and Changes in Fund Net Position O-2 186Combining Statement of Cash Flows O-3 188

Fiduciary Funds:Combining Statement of Fiduciary Net Position - Pension and Other Employee

Benefit Trust Funds P-1 193Combining Statement of Changes in Plan Net Position - Pension and Other

Employee Benefit Trust Funds P-2 194Combining Statement of Assets and Liabilities - All Agency Funds P-3 196Combining Statement of Changes in Assets and Liabilities - All Agency Funds P-4 198

Drain Commission Component Unit:Statement of Net Position/Balance Sheet-Governmental Funds Q-1 204Statement of Activities/Statement of Revenues, Expenditures, and Changes in Q-2 206

Fund Balances-Governmental Funds

Capital Assets Used in the Operation of Governmental Funds:Comparative Schedule By Source R-1 211Schedule By Function and Activity R-2 212Schedule of Changes By Function and Activity R-3 213

STATISTICAL SECTION Schedule

Net Position by Component 1 218Changes in Net Position 2 220Fund Balances - Governmental Funds 3 224Changes in Fund Balances - Governmental Funds 4 226Assessed and Estimated True Cash Value of Taxable Property 5 228Direct and Overlapping Property Tax Rates 6 230Principal Property Tax Payers 7 231Property Tax Levies and Collections 8 232Ratios of Outstanding Debt by Type 9 234Computation of Net Direct and Overlapping Debt 10 236Legal Debt Margin 11 237Demographic and Economic Statistics 12 238Principal Employers 13 239Full-Time County Primary Government Employees by Function/Program 14 240Operating Indicators by Function/Program 15 242Capital Asset Statistics by Function/Program 16 244


INTRODUCTORY SECTION

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MONROE COUNTY

FINANCE DEPARTMENT125 East Second Street Monroe, Michigan 48161-2197Telephone: (734) 240-7250 Fax (734) 240-7266

June 24, 2013

To the Citizens of theCounty of Monroe, Michigan:

Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report andprovides a narrative introduction, overview, and analysis of the basic financial statements. MD&Acomplements this letter of transmittal and should be read in conjunction with it.

The County is required to undergo an annual single audit in conformance with the provisions of the SingleAudit Act and United States Office of Management and Budget Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations. The results of the County's single audit for the year endedDecember 31, 2012, are contained in a separately issued single audit report.

The Comprehensive Annual Financial Report of the County of Monroe, Michigan, for the year endedDecember 31, 2012, is submitted herewith. The staff of the County of Monroe Finance Department preparedthis report. Responsibility for both the accuracy of the presented data and the completeness and fairness ofthe presentation, including all disclosures, rests with the County.

The Michigan Uniform Accounting and Budgeting Act require every general-purpose government publish,within six months of the close of the fiscal year, a complete set of audited financial statements. This reportis published to fulfill that requirement for the year ended December 31, 2012.

Management assumes full responsibility for the completeness and reliability of the information contained inthis report, based upon a comprehensive framework of internal control it has established for this purpose.Because the cost of internal control should not exceed anticipated benefits, the objective is to providereasonable, rather than absolute assurance that the financial statements are free of any materialmisstatement. Management believes the information as presented is accurate in all material respects; thatit is presented in a manner designed to fairly set forth the financial position and results of operations of theCounty as measured by the financial activity of its various funds; and that the disclosures necessary toenable the reader to gain the maximum understanding of the County's financial activity have been included.

Rehmann Robson, Certified Public Accountants, have issued an unqualified (“clean”) opinion on the Countyof Monroe’s financial statements for the year ended December 31, 2012. The independent auditor’s report islocated at the front of the financial section of this report.

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FINANCIAL MANAGEMENT AND CONTROL

The County has established a Finance Department that is responsible for the administration of the county-wide general ledger activities and financial reporting. The Finance Department works collaboratively withvarious departments to maintain an up to date and accurate financial reporting system. Additionally, anindependent audit of the County’s Comprehensive Annual Financial Report is completed annually.

As demonstrated by the statements and schedules included in the financial section of this report, the Countycontinues meeting its responsibility for sound financial management.

PROFILE OF THE COUNTY AND ITS SERVICES

The County of Monroe, organized in 1811, is located in the southeast corner of Michigan's Lower Peninsula,approximately 20 miles southeast of Detroit. The 2010 census recorded a population of 152,021. TheCounty’s major population areas include the City of Monroe, Village of Dundee and Bedford Township. TheCounty seat is located in the City of Monroe. The County of Monroe is empowered to levy a property tax, theprimary source of funding, on both real and personal property located within its boundaries. Thegovernmental structure of the County is based upon the State Constitution and the general laws of the Stateof Michigan. The County's legislative body, and its administrative body for many functions, is the CountyBoard of Commissioners. The Board consists of nine commissioners elected by direct vote from single-member districts every even numbered year. In addition to the Board of Commissioners, there are additionalelected officials serving the County in judicial, administrative, or staff officer roles. An organization chartdepicting the County structure is shown on the page following this letter. The County of Monroe providesmany services to County residents including those in the following areas of interest: public safety andjustice, emergency preparedness and response, planning and environment, housing and homelessness, publichealth, children’s well-being, civic infrastructure, and support services. The County also supports culturaland recreational services such as the MSU Cooperative Extension, Library System, Historical Museums, andParks and Recreation.

The Monroe County Municipal Building Authority functions for all practical purposes as a department of theCounty and is presented as a blended component unit. The County is also financially responsible for fivelegally separate component units. The Monroe County Road Commission, Monroe County Community MentalHealth Authority, Monroe County Library System, Monroe County Drain Commission, and County AgencyDepartment are presented as discrete component units in the financial statements. Additional informationon all of these legally separate entities can be found in the notes to the financial statements.

The Board of Commissioners has the primary responsibility for establishing financial management policy forthe County. The State of Michigan Constitution divides the administration duties of the County amongvarious elected officials and the County Administrator/Chief Financial Officer. The general administrationof all non-elected departments and agencies fall under the County Administrator/Chief Financial Officer.

The Board of Commissioners is committed to ensuring the long-term fiscal stability of the County. TheCounty has operated very deliberately over the past several years, making sound financial but operationallydifficult decisions in a sound fiscally prudent manner. As a result of these actions, the unassigned fundbalance in the general fund for 2012 is within amounts of the financial management policy guidelines set bythe Board of Commissioners for budgetary and planning purposes. The Board has continued its commitmentto plan future budgets to meet the goal of a reserve for subsequent years representing one-twelfth of theannual general fund operating budget. Relevant financial policy guidelines that affect current yearoperations include budget guidelines, budget modeling, purchasing and investment policies.

Management of the County is responsible for establishing and maintaining internal control designed toensure that the assets of the County are protected from loss, theft or misuse and to ensure that financialstatements are in conformity with generally accepted accounting principles. The internal control isdesigned to provide reasonable, but not absolute, assurance that these objectives are met. The concept ofreasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to bederived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

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As other sources of revenue have declined along with property tax revenues, the share of the general fundbudget’s total revenues has risen to 64%. As manufacturing and other economic conditions have changedover time, and moved from a more industrial based economy to a service economy, dependence on thissource of revenue to fund local government services has contracted. In addition to this revenue source, theCounty receives statutorily provided revenue sharing from the State. The State has taken a decisive courseto reduce the amount of statutorily provided revenue to counties and Monroe County has and is projected toreceive less state revenue sharing into the future.

Relevant Financial Issues

Single Audit

As a recipient of federal financial assistance, the County is responsible for ensuring that sufficient internalcontrol is in place to achieve compliance with applicable laws and regulations related to program funds.This internal control is subject to periodic evaluation by management and the independent auditors of theCounty.

Employment

Unemployment in Monroe County had reached peak levels at 17% during the summer of 2009, and hasgradually moderated since then. Unemployment for 2012 reached 9.0% in January and fell to 6.6% inNovember, for an annualized rate of 8.0%, before seasonally adjusted. While the unemployment rate for theState of Michigan averaged 8.9% in 2012 overall, it held at 9.3% through the summer months of June, July,and August, seasonally adjusted.

Budgeting Control

The County maintains budgetary control with the objective of ensuring compliance with legal provisionsembodied in the annual appropriation act approved by the County Board of Commissioners. Activities of thegeneral and special revenue funds are included in the annual budget. The level of budgetary control isestablished at the department level within an individual fund. The County maintains an encumbranceaccounting system as one technique of achieving budgetary control. Encumbrances outstanding atDecember 31, 2012, do not lapse, instead are set aside within the fund balance and brought forward to thenew fiscal year. A supplemental control is quarterly reporting of revenues and expenditures to the Board ofCommissioners to monitor overall compliance with budgeted figures.

As part of the County's single audit, tests are made to determine the adequacy of the internal control,including that portion related to federal financial assistance programs, as well as to determine that theCounty has complied with applicable laws and regulations. Information related to this single audit,including the schedule of expenditures of federal awards, a schedule of findings and questioned costs, andindependent auditor's reports on internal control and compliance, are included in a separately issued singleaudit report.

ECONOMIC CONDITION AND OUTLOOK

Like other communities in southeast Michigan, the County has been subject to cycles of economic growthand contraction as a result of globalization and marketplace restructurings with associated changes in theworkforce employment rate.

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In 2012, communities across the county issued 2,773 permits totaling $47 million for alterations, additions,and accessory buildings. The County also has a Strategic Housing Plan and a Housing Commission, which, inconjunction with the Monroe County Opportunity Program, oversees implementation of the Plan, andadministers local housing programs.

After slight increases in 2011, both commercial and industrial development decreased in dollar value in2012. While the number of industrial construction permits increased from 10 to 12, the dollar value of theunits decreased from $28,692,246 in 2011 to $18,475,698 in 2012. In the 1990’s, the County averaged 16industrial permits annually, with highs of 28 and 24 permits in 1995 and 1997, respectively.

New construction activities for Monroe County can be studied in detail in the publication, 2012 Summary ofNew On-Site Construction Activity and Manufactured Housing Development, published by the Monroe CountyPlanning Department, and available online at www.monroe.co.mi.us/planning.

Building Activities

Construction of single-family housing units is perhaps the most significant aspect of building trends, and isoften used as an indicator of economic health. From 1994 to 2003, the number of permits issued for newsingle-family dwelling units increased annually with 924 permits issued in 2003. The period 2004 through2010 saw construction numbers steadily decline, with 763 permits in 2005, 540 permits in 2006, 297 permitsin 2007, 118 permits in 2008, 72 permits in 2009 and 101 permits in 2010. Beginning in 2011, there weresmall increases with 107 in 2011 and 131 units in 2012. During the 1970s, new units per year averaged 615.Since 2000, the annual average number of permits issued for new single-family detached dwelling units inMonroe County was 461 units, which is higher than the average for the 1980s of 265 units per year. Theaverage cost of building a new single family detached home in Monroe County in 2012 was $166,647, adecrease of $7,633 from the 2011 average. This is the third year out of the last four when the average pricedecreased and may reflect a market shift towards smaller housing choices. No two-family or multiple-familyresidential structures have been built since 2007.

Industrial

The Monroe County Business Development Corporation (MCBDC) is a public-private partnership providingsupport services to long-time area companies as well as to new business prospects in the County, with sitereviews, marketing profiles, transportation surveys, information on area suppliers, infrastructure andgovernment regulations.

The MCBDC has expanded from strictly industrial development to include commercial development. Its“Business First” program was established in 2005 as a one-stop resource for commercial developers seekingto expand or locate within Monroe County. Leading a collaborative effort in 2012, the Monroe CountyEconomic Development Corporation created a Developer’s Streamlining Guide to better serve thedevelopment community. This county-wide guide is intended to expedite the development process forindustrial, commercial and residential real estate within Monroe County.

Following hearings held in 2009, DTE Energy has continued its efforts in pursuing its application with theFederal Nuclear Regulatory Commission for a combined construction and operating license of anothernuclear reactor at the site of its Fermi 2 generating plant in Frenchtown Township. The company firstapplied to the NRC in 2008 to build a GE-Hitachi Economic Simplified Boiling Water Reactor, or ESBWR, thenewest generation of nuclear reactors, at its plant on Lake Erie near Newport. The U.S. Nuclear RegulatoryCommission determined in January 2013 that environmental concerns were not significant enough to halt itsconstruction. If plans proceed, the project would represent a significant economic boost to not only MonroeCounty, but to southeast Michigan.

Since 1982, the MCBDC has been actively engaged in marketing the economic benefits of the area tocommercial and industrial interests and is a member of “Automation Alley,” a regional consortium whosemission is to bring high-tech businesses to southeast Michigan.

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Consumers Power Company’s Whiting Power Plant in Luna Pier will close in January 2015. The 330-megawattplant began generating electricity in 1952 and employs about 110 workers, and represents more than two-thirds of Luna Pier’s tax base. The move is part of a company-wide plan to reduce pollution.

Ford Motor Company ended its affiliation with Mazda at its Flat Rock Assembly Plant, and is investing morethan a half-billion dollars there to add about 1,200 jobs. The plant had employed about 1,700, and Ford saidit planned to call back laid-off workers and, if necessary, hire new workers at a lower wage to fill the 1,200jobs it is adding. The plant is the only U.S. producer of the Ford Fusion, and it will also continue building theFord Mustang. Its work force is forecasted to grow to 2,900. Mazda still owns a 50 percent interest in theplant itself, but will now produce its Mazda 6 model in Japan.

Chrysler Group LLC is adding between 1,100 and 1,400 new jobs in May 2013 at its Jeep plant in northToledo to produce a new SUV that replaces the Jeep Liberty. The local economic impact will be fromcounty residents employed at the plant.

Industrial Development Highlights

Gerdau Special Steel North America has undertaken two expansion projects at its Monroe plant that willincrease production. A new continuous steel casting system was operational in October 2012, costing morethan $60 million. Improvements to the rolling mill and furnaces, expected to be completed in October 2013,represent an investment of at least $88.5 million. The company employs about 525 people in Monroe, andthe improvements are expected to add 30 jobs.

Monroe Environmental Corporation has undertaken an office expansion project to accommodate itscontinued growth. The company is doubling its office area, expanding it by about 4,400 square feet. Newparking will be added, and the entire structure will have a new look. The company has increased itsemployment count to about 60, necessitating the project. Total investment including building andequipment is expected to be $507,000 and employment expected to increase by as much as another 15 jobs.

La-Z-Boy Incorporated will construct a 150,000-200,000 square foot headquarters building on the north sideof the City of Monroe and partially in Frenchtown Township, on 80 acres acquired from the Sisters, Servantsof the Immaculate Heart of Mary. Although only preliminary cost estimates have been developed to date,the cost of the land, building, computers, and furniture and fixtures on the site is expected to be in therange of $50 million. Projected infrastructure improvements are expected to include water, sewer,electric, roadway and natural gas. The State of Michigan Strategic Fund has approved a $3.7 millionincentive package and a federal community development block grant of $700,000 to pay for water, sewer,road, and other infrastructure improvements. La-Z-Boy has been one of the world’s leading residentialfurniture producers for 85 years. The company, founded in the City of Monroe, manufactures a full line ofproducts for the residential market, including the company’s world-famous recliners, reclining sofas, loveseats, sleep sofas, modular furniture and leather upholstery, as well as stationary sofas, love seats andchairs. In addition to the company’s corporate headquarters in Monroe, they have five U.S. manufacturingplants, four distribution centers and 85 company-owned retail stores. La-Z-Boy employs more than 5,000people nationwide with 435 in Monroe.

Commercial/Retail

Four communities have Downtown Development Authorities, including the City of Monroe, the City of Milan,Bedford Township, and the Village of Dundee. DDAs have the authority to capture property taxes fromproperties within the defined development district, and use the revenue for additional districtenhancements. They can also assist property owners with grant programs to fund improvements, offervarious promotional activities, and hire consultants to conduct retail market analyses for the downtownareas.

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The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificateof Achievement for Excellence in Financial Reporting to the County of Monroe, Michigan, for itscomprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2011. This was theeleventh consecutive year, and fourteenth of the past fifteen years, the County has achieved this honor. TheCertificate of Achievement is a prestigious national award, recognizing conformance with the higheststandards for preparation of a state and local government financial report.

In order to be awarded a Certificate of Achievement, a government must publish an easily readable andefficiently organized comprehensive annual financial report. The CAFR must satisfy both generally acceptedaccounting principles and applicable legal requirements.

MAJOR INITIATIVES

As the County plans for the future, new initiatives are being undertaken within the organization. TheCounty is continuing annual investments in technology improvements, including continuing upgrades to dataand voice systems through the virtualization of critical data server hardware. Additional ongoing upgradesto the County web page include both design and new applications for business and citizen customerinterface providing enhanced access to programs, services and information. Of critical importance to ourcitizens is emergency response and the County is leveraging federal and local matching funds to replaceCentral Dispatch emergency communication radio consoles. This $562,574 project represents the efforts ofseveral partners in public safety working to ensure County emergency communications remain a model ofbest in class to best serve our citizens.

The first phase of a new fiber-optic data network being installed in Michigan by Merit Network, Inc. hasbeen completed, with the goal of bringing faster internet speeds to Monroe County. Part of the new systemcrosses Monroe County from west to east, with a connection to Monroe County Community College. MonroeCounty Library System and Monroe County Intermediate School District also will have access to faster dataand broader interconnectivity. Homes, schools, and businesses throughout the County will benefit withfaster internet speeds and lower costs. The project is being financed primarily by federal stimulus grants.

There are several local organizations that work to promote commercial business in Monroe County, oftenutilizing collaborative relationships. These include the Monroe County Business Development Corporation,the Monroe County Chamber of Commerce, the downtown development authorities, the Bedford BusinessAssociation, and the Dundee Area Business Association. Elements of their mission statements may includesharing knowledge and ideas, strengthening business relationships, enhancing the quality of life, developinga positive image of the business community, retaining customers and businesses, reaching out to newmembers, promoting cultural improvement, advancement of economic growth, and working for the good ofthe business environment and the community at large.

Georgia-based trucking company Premier Transportation has purchased a shipping and receiving facility off I-75 in Frenchtown Township once used by HomeDepot.

“Pure Monroe” is part of the ongoing tourism advertising campaign known as “Pure Michigan.” The Statelaunched the effort in 2006 with TV, radio, print, and outdoor advertising to promote the state’s choicetourist destinations, and went national in 2009. The local “Pure Monroe” campaign began in 2011. A group oflocal sponsors help finance the ads, which run in Michigan and other states. Pure Michigan has generated $4billion dollars since 2006, according to Travel Michigan.

OTHER INFORMATION - Acknowledgements

Miscellaneous

With the use of professional expertise, new employee benefit and compensation strategies negotiated bythe County continue to assist in cost control efforts in areas of compensation and benefit program costs. Weacknowledge the cost sharing efforts of our employee groups to help fund and sustain the totalcompensation programs that are important to attracting and retaining a qualified workforce.

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Respectfully submitted,

Michael BosanacAdministrator/Chief Financial Officer

A Certificate of Achievement is valid for a period of one year only. We are confident our currentcomprehensive annual financial report continues to meet the Certificate of Achievement Program’srequirements, and we are submitting it to GFOA to determine its eligibility for another certificate.

Appreciation is extended to the Monroe County Board of Commissioners and the employees throughout theorganization responsible for financial management and reporting. In particular, on behalf of the County, Iwant to acknowledge the special efforts of the Finance Department employees, primarily Susan Maier,Director of Fiscal Services, who directly authored this report and Crystal Comer, Accountant, whoparticipated directly in the drafting of the report.

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Henry Lievens David Hoffman Stephen BellDistrict 1 District 2 District 3

Daniel Donahue Jerry Oley Mary O'NeillDistrict 4 District 6 District 7

Jason SheppardDistrict 8

Circuit Court District Court Probate Court

Hon. Michael W. LaBeau Hon. Terrence Bronson Hon. Frank L. ArnoldHon. Michael A. Weipert Hon. Mark S. Braunlich Hon. John A. Hohman, Jr.

Hon. Daniel S. White Hon. Jack Vitale

Sharon LeMasters Kay Sisung William P. NicholsCounty Clerk/Register County Treasurer Prosecuting Attorney

Tilman Crutchfield David P. ThompsonSheriff Drain Commissioner

Other Elected Officials

Monroe County Board of CommissionersAt December 31, 2012

LaMar Frederick, ChairmanDistrict 9

William Sisk, Vice-ChairmanDistrict 5

Members

Circuit, Probate and First District Court Judges

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FINANCIAL SECTION

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Rehmann Robson

675 Robinson Rd. Jackson, MI 49203 Ph: 517.787.6503 Fx: 517.788.8111 rehmann.com

CPAs & Consultants Wealth Advisors Corporate Investigators

Rehmann is an independent member of Nexia International.

INDEPENDENT AUDITORS' REPORT

June 24, 2013

To the Board of Commissionersof the County of Monroe, Michigan

Monroe, Michigan

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, the aggregate discretely presented component units, each major fund, and the aggregateremaining fund information of the County of Monroe, Michigan, as of and for the year endedDecember 31, 2012, and the related notes to the financial statements, which collectively comprise theCounty’s basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includesthe design, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did notaudit the financial statements of the Monroe County Road Commission, Monroe County Community MentalHealth Authority, Monroe County Library System and Monroe County Agency that collectively represent87.0% of the assets and 99.1% of the revenues of the aggregate discretely presented component units.Those statements were audited by other auditors whose reports have been furnished to us, and ouropinion, insofar as it relates to the amounts included for the Monroe County Road Commission, MonroeCounty Community Mental Health Authority, Monroe County Library System and Monroe County Agency, isbased solely on the reports of the other auditors. We conducted our audit in accordance with auditingstandards generally accepted in the United States of America and the standards applicable to financialaudits contained in Government Auditing Standards, issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement.

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An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditors’ judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of significant accountingestimates made by management, as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinions.

Opinions

In our opinion, based on our audit and the reports of other auditors, the financial statements referred toabove present fairly, in all material respects, the respective financial position of the governmentalactivities, the business-type activities, the aggregate discretely presented component units, each majorfund, and the aggregate remaining fund information of the County of Monroe, Michigan, as ofDecember 31, 2012, and the respective changes in financial position and, where applicable, cash flowsthereof, and the respective budgetary comparison for the general fund and each major special revenuefund, for the year then ended in accordance with accounting principles generally accepted in the UnitedStates of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that management’sdiscussion and analysis and the schedules of funding progress and employer contributions listed in thetable of contents be presented to supplement the basic financial statements. Such information, althoughnot a part of the basic financial statements, is required by the Governmental Accounting StandardsBoard, who considers it to be an essential part of financial reporting for placing the basic financialstatements in an appropriate operational, economic, or historical context. We have applied certainlimited procedures to the required supplementary information in accordance with auditing standardsgenerally accepted in the United States of America, which consisted of inquiries of management aboutthe methods of preparing the information and comparing the information for consistency withmanagement’s responses to our inquiries, the basic financial statements, and other knowledge weobtained during our audit of the basic financial statements. We do not express an opinion or provide anyassurance on the information because the limited procedures do not provide us with sufficient evidenceto express an opinion or provide any assurance.

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Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the County’s basic financial statements. The introductory section, combining and individualfund financial statements and schedules, and statistical section are presented for purposes of additionalanalysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules are the responsibility ofmanagement and were derived from and relate directly to the underlying accounting and other recordsused to prepare the basic financial statements. Such information has been subjected to the auditingprocedures applied by us in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and otherrecords 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 UnitedStates of America. In our opinion, based on our audit, the procedures performed as described above, thecombining and individual fund financial statements and schedules are fairly stated in all material respectsin relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied inthe audit of the basic financial statements and, accordingly, we do not express an opinion or provide anyassurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated June 24, 2013on our consideration of the County of Monroe’s internal control over financial reporting and on our testsof its compliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion oninternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the County of Monroe'sinternal control over financial reporting and compliance.

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MANAGEMENT'S DISCUSSION AND ANALYSIS

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Management's Discussion and Analysis

Financial Highlights

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Overview of the Financial Statements

As management of the County of Monroe, Michigan, we offer readers of the County’s financial statements thisnarrative overview and analysis of the financial activities of the County for the fiscal year ended December 31, 2012.We encourage readers to consider the information presented here in conjunction with additional information that wehave furnished in our letter of transmittal and the accompanying basic financial statements.

The assets of the County of Monroe primary government exceeded its liabilities at the close of the most recentfiscal year by $55,955,046 (net position) . Of this amount, $32,125,893 (unrestricted net position) may be usedto meet the government’s ongoing obligations to citizens and creditors.

The County’s total net position decreased by $4,422,815. This decrease was due to declining revenue combinedwith increasing costs, particularly in the public safety category.

As of the close of the current fiscal year, the County’s governmental funds (this includes the general, specialrevenue, debt service and capital projects funds) reported combined ending fund balances of $21,929,712, adecrease of $728,649 in comparison with the prior year. Approximately 72 percent of the ending fund balancesare subject to the underlying limitations applicable to the particular special revenue, debt service and capitalprojects funds. Approximately 28 percent of the amount, $6,219,221, is available for spending at thegovernment’s discretion (unassigned fund balance ).

At the end of the current fiscal year, unassigned fund balance for the general fund was $6,298,270 or 15 percentof total general fund expenditures and transfers out.

This discussion and analysis is intended to serve as an introduction to the County of Monroe’s basic financialstatements. These statements are comprised of three components: 1) government-wide financial statements, 2) fundfinancial statements, and 3) notes to the financial statements. This report also contains other supplementaryinformation in addition to the basic financial statements themselves.

Government-wide Financial Statements. The government-wide financial statements are designed to provide readerswith a broad overview of the County of Monroe’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the County of Monroe’s assets, liabilities, and deferredinflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in netposition may serve as a useful indicator of whether the financial position of the County of Monroe is improving ordeteriorating.

21



Fund financial statements. A fund is used to maintain control over resources that have been segregated for specificactivities or objectives. The County of Monroe, like other state and local governments, uses fund accounting toensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County ofMonroe can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds. Most of the County’s basic services are reported in governmental funds, which focus on howmoney flows into and out of those funds and the balances left at year-end that are available for spending. Thesefunds are reported using the modified accrual basis of accounting, which measures cash and all other financial assetsthat can readily be converted to cash. The governmental fund statements provide a detailed short-term view of theCounty’s general governmental operations and the basic services it provides.

The County also includes legally separate entities (component units) for which the County is financially accountable.The component units include the Monroe County Road Commission, Monroe County Community Mental HealthAuthority, the Monroe County Library System, the Monroe County Drain Commission, and the Monroe County DrainCommissioner County Agency. Financial information for these component units is reported separately from thefinancial information presented for the primary government. The Monroe County Municipal Building Authority,although also legally separate, functions for all practical purposes as a department of the County, and therefore hasbeen included as an integral part of the primary government as a blended component unit in the County’sgovernmental activities.

The statement of activities presents information showing how the government’s net position changed during themost recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to thechange occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in thisstatement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes andearned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the County of Monroe that are principallysupported by taxes and intergovernmental revenues (governmental activities) from other functions that are intendedto recover all or a significant portion of their costs through user fees and charges (business-type activities).Governmental activities include general government, public safety, public works, health and welfare, communityand economic development, and recreation and culture. Business-type activities include delinquent tax collections,property tax foreclosures, equipment rental, a revolving loan program, imaging services, engineering and operation ofan inmate commissary.

22



Because the focus of governmental funds is narrower than that of the government-wide financial statements, it isuseful to compare the information presented for governmental funds with similar information presented forgovernmental activities in the government-wide financial statements. By doing so, readers may better understandthe long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheetand the governmental funds statement of revenues, expenditures, and changes in fund balances provide areconciliation to facilitate this comparison between government funds and governmental activities.

Notes to the financial statements. The notes provide additional information that is essential to a full understandingof the data provided in the government-wide and fund financial statements.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside thegovernment. Fiduciary funds are not reflected in the government-wide financial statements because the resources ofthose funds are not available to support the County’s own programs. The accounting used for fiduciary funds is muchlike that used for proprietary funds.

Proprietary funds. The County maintains two different types of proprietary funds: enterprise and internal service.Enterprise funds are used to report the same functions presented as business-type activities in the government-widefinancial statements. The County uses enterprise funds to account for its delinquent tax, equipment rental, imagingservices, engineering, inmate commissary, property tax foreclosure and revolving loan operations. Internal servicefunds are used to accumulate and allocate costs internally among the County’s various functions. The varioussupport services that are accounted for using internal service funds include telephone, self-insurance, computer andoffice equipment replacement. Because these services predominantly benefit governmental rather than business-type functions, 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 with moredetail. The proprietary funds financial statements provide separate information for the delinquent tax revolvingfund, which is considered to be a major fund. Data for the remaining enterprise funds is combined into a singleaggregated presentation. All internal service funds are combined into a single, aggregated presentation in theproprietary funds financial statements. Individual fund data for the nonmajor enterprise funds and internal servicefunds is provided in combining statements elsewhere in this report.

The County of Monroe maintains several individual governmental funds. Information is presented separately in thegovernmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changesin fund balances for the general fund, county health fund, revenue sharing reserve fund, federal prisoner housingfund, and senior citizen fund, each of which is considered to be a major fund. Data for the remaining governmentalfunds is combined into a single, aggregated presentation. Individual fund data for each of these nonmajorgovernmental funds is provided in the form of combining statements elsewhere in this report.

23



Monroe County Net Position

Governmental Activities Business-type Activities Total

2012 2011 2012 2011 2012 2011Assets

Current and other assets 39,597,099$ 42,446,344$ 22,485,155$ 22,982,801$ 62,082,254$ 65,429,145$

Capital assets, net 31,452,652 34,028,676 - 1,352 31,452,652 34,030,028

Total assets 71,049,751 76,475,020 22,485,155 22,984,153 93,534,906 99,459,173

Deferred outflow of resources

Deferred loss on refunding 59,613 69,548 - - 59,613 69,548

Liabilities

Long-term liabilities 23,465,297 20,648,666 3,205,000 5,515,000 26,670,297 26,163,666

Other liabilities 5,905,162 7,816,995 200,337 494,312 6,105,499 8,311,307

Total liabilities 29,370,459 28,465,661 3,405,337 6,009,312 32,775,796 34,474,973

Deferred inflow of resources

Property taxes 4,863,677 4,675,887 - - 4,863,677 4,675,887

Net position:

Net investment in capital assets 20,148,661 23,066,135 - 1,352 20,148,661 23,067,487

Restricted 3,680,492 2,986,630 - - 3,680,492 2,986,630

Unrestricted 13,046,075 17,350,255 19,079,818 16,973,489 32,125,893 34,323,744

Total net position 36,875,228$ 43,403,020$ 19,079,818$ 16,974,841$ 55,955,046$ 60,377,861$

The government-wide financial analysis focuses on the net position and changes in net position of the governmentaland business-type activities. As noted earlier, net position may serve over time as a useful indicator of agovernment’s financial position. As the following table demonstrates, the County’s assets and deferred outflowsexceeded its liabilities and deferred inflows by $55,955,046 at December 31, 2012.

Government-Wide Financial Analysis

The largest portion of the County’s net position, $32,125,893 (57 percent), represents unrestricted net position thatmay be used to meet the County’s ongoing obligations to citizens and creditors.

An additional portion of the County’s net position, $20,148,661 (36 percent), reflects its investment in capital assets(i.e., land, buildings, vehicles, equipment and infrastructure) less any related debt used to acquire those assets thatis still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assetsare not available for future spending. Although the County’s investment in its capital assets is reported net ofrelated 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.

The remaining balance of $3,680,492 (7 percent) represents resources that are subject to external restrictions on howthey may be used.

At the end of the current fiscal year, the County is able to report positive balances in all three categories (netinvestment in capital assets, restricted and unrestricted) of net position, both for the primary government as awhole, as well as for its separate governmental and business-type activities. The same situation held true for theprior fiscal year.

24



Monroe County Changes in Net Position


2012 2011 2012 2011 2012 2011Revenues

Program revenues

Charges for services 7,549,769$ 7,173,029$ 3,063,896$ 3,121,377$ 10,613,665$ 10,294,406$

Operating grants and

contributions 15,947,942 16,293,868 3,072 276,650 15,951,014 16,570,518

Capital grants and

contributions - - - - - -

General revenues

Property taxes 31,094,159 31,628,655 - - 31,094,159 31,628,655

Grants and contributions not

restricted to specific -

programs 2,970,714 3,554,509 - - 2,970,714 3,554,509

Unrestricted interest and

other revenue 714,351 730,058 25,413 27,974 739,764 758,032

Total revenues 58,276,935 59,380,119 3,092,381 3,426,001 61,369,316 62,806,120

Expenses

General government 20,920,339 19,208,346 - - 20,920,339 19,208,346

Public safety 30,248,077 27,941,645 - - 30,248,077 27,941,645

Public works 130,288 56,288 - - 130,288 56,288

Health and welfare 12,056,811 12,573,802 - - 12,056,811 12,573,802

Community and economic

development 514,814 614,220 - - 514,814 614,220

Recreation and culture 521,371 628,466 - - 521,371 628,466

Interest on long-term debt 412,377 488,640 - - 412,377 488,640

Delinquent tax revolving - - 155,273 187,954 155,273 187,954

Equipment rental - - 225,959 158,906 225,959 158,906

Printing - - 98,627 96,246 98,627 96,246

Engineering - - 2,075 14,233 2,075 14,233

Inmate commissary - - 164,910 132,853 164,910 132,853

Property tax foreclosures - - 299,867 288,513 299,867 288,513

Revolving loan - - 41,343 163,349 41,343 163,349

Total expenses 64,804,077 61,511,407 988,054 1,042,054 65,792,131 62,553,461

Change in net position

before transfers (6,527,142) (2,131,288) 2,104,327 2,383,947 (4,422,815) 252,659

Transfers (650) (17,460) 650 17,460 - -

Change in net position (6,527,792) (2,148,748) 2,104,977 2,401,407 (4,422,815) 252,659

Net position

Beginning of year, as restated 43,403,020 45,551,768 16,974,841 14,573,434 60,377,861 60,125,202

End of year 36,875,228$ 43,403,020$ 19,079,818$ 16,974,841$ 55,955,046$ 60,377,861$

The County’s net position decreased by $4,422,815 during the current fiscal year; the decrease that occurred ingovernmental activities was attributable to the change in property taxes collected related to the accelerated tax levyestablished to fund the reduction in state shared revenues combined with declining property values. All revenuesexcept charges for services decreased. Other significant factors in 2012 include increased expenses of $1,711,993 inthe general government and $2,306,432 in the public safety categories.

25



Governmental activities. Governmental activities decreased the County’s net position by $6,527,792. As previouslymentioned, the major reasons for this decrease were related to decreased property tax collections for both thecurrent year and the accelerated tax levy, as well as decreased revenue and increased general government and publicsafety expenses.

The 2012 increase in governmental activities expenses is primarily in the general government and public safety areas.Transfers out decreased by more than $200,000 reflecting ongoing efforts to reduce expenses.

‐

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Generalgovernment

Public safety Public works Health andwelfare

Community andeconomic

development

Recreation andculture

Interest onlong-term debt

Expenses and Program Revenues - Governmental Activities

Expenses

Program Revenues

26



The general fund is the chief operating fund of the County. At the end of the current fiscal year, unassigned fundbalance of the general fund was $6,298,270, with a total fund balance of $11,124,735. Unassigned fund balancerepresents approximately 15 percent of total general fund expenditures and transfers out. The fund balance of theCounty’s general fund increased by $146,879 during the current fiscal year. This is primarily attributable to increasesin most revenue categories, and decreased general government and public safety expenditures.

As noted earlier, the County of Monroe uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Financial Analysis of the County’s Funds

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 financingrequirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resourcesavailable for spending at the end of the fiscal year.

At the end of the current fiscal year, the County’s governmental funds reported combined ending fund balances of$21,929,712, a decrease of $728,649 when compared with the prior year. This was primarily due to decreasedintergovernmental revenues. Approximately 72 percent of the ending fund balances are subject to the underlyinglimitations applicable to the particular special revenue or debt service fund. Approximately 28 percent of theamount, $6,219,221, is available for spending at the government’s discretion (unassigned fund balance).

Business-type Activities. Business type activities increased the County’s net position by $2,104,977. While revenuesdecreased by 11%, expenditures decreased by 9%, resulting in increased net position.

13%

28%

0%

53%

5%

1%

Revenue by Source - Governmental Activities

Charges for services

Operating grants and contributions

Capital grants and contributions

Property taxes

Grants and contributions notrestricted to specific programsUnrestricted interest and otherrevenue

27



Overall during the year, actual general fund revenues and expenditures along with other financing sources and usesresulted in an increase in fund balance of $146,879 compared to a final budgeted decrease of approximately$586,000.

General Fund Budgetary Highlights

Differences between the original and final amended budgets for expenditures resulted in a 3.4 percent increase (anincrease in appropriations of approximately $1,420,000), primarily from an increase in budgeted public safetyexpenses and capital outlay related to homeland security grants.

Overall during 2012, general fund revenues and other financing sources were lower than the budgetary estimates by$1,122,783. The areas of greatest variance include property taxes and intergovernmental revenues. Property taxeswere less than the budgeted amount primarily due to continued property value decline. The differences inintergovernmetal revenues is mainly due to ongoing homeland security grants.

Expenditures were less than budgetary estimates overall and for each of the major classifications. Specifically,actual services and supplies costs were less than budgeted amounts in most general fund departments due to internalcost savings measures. In addition, ongoing homeland security grants contributed to underspending of budgetedexpenditures in the services and supplies and capital outlay classifications.

The county health fund had a total fund balance of $2,874,670, with $1,712,127 restricted for specific programs. Allrevenue categories declined, as did all expenditure categories. The increase in fund balance is due to the excess ofsolid waste fees over expenditures.

The fund balance of the revenue sharing reserve fund decreased $3,037,321 to a total of $674,541. The decrease isbecause the tax revenues of the accelerated tax levy established to fund the reduction in state shared revenuesended in 2006. Each year the State publishes the allowable spending amount that can be transferred from thereserve fund which will occur until the fund is depleted.

The federal prisoner housing fund’s increased intergovernmental revenues led to a fund balance increase of $158,104,for a total fund balance of $595,377.

The senior citizen fund had a total fund balance of $620,368. The decrease of $9,786 is primarily due to decreasedtax revenues.

Proprietary funds. The County’s proprietary fund statements provide the same type of information found in thegovernment-wide financial statements, but in more detail.

Total net position of the enterprise and internal service funds at year-end amounted to $19,079,818, and $7,072,876,respectively. The enterprise funds had an increase in net position for the year of $2,104,977, due mainly todecreased cost of services. A increase in claims and expenses caused the majority of the $433,140 decrease ininternal service funds’ net position.

28



·

·

·


2012 2011 2012 2011 2012 2011

Land and improvements 227,586$ 245,381$ -$ -$ 227,586$ 245,381$ Construction in progress - - - - - - Collections 113,500 113,500 - - 113,500 113,500 Buildings and improvements 23,100,397 24,740,083 - - 23,100,397 24,740,083 Machinery and equipment 7,712,535 8,534,285 - - 7,712,535 8,534,285 Vehicular equipment 298,634 395,427 - 1,352 298,634 396,779 Total capital assets, net 31,452,652$ 34,028,676$ -$ 1,352$ 31,452,652$ 34,030,028$

General Obligation


2012 2011 2012 2011 2012 2011

General obligation bonds 11,350,000$ 11,080,000$ -$ -$ 11,350,000$ 11,080,000$ General obligation tax

notes - - 3,205,000 5,515,000 3,205,000 5,515,000 Total general obligation 11,350,000$ 11,080,000$ 3,205,000$ 5,515,000$ 14,555,000$ 16,595,000$

Additional information on the County’s capital assets can be found in Note 7 of this report.

Capital Assets. The County’s capital assets (net of accumulated depreciation) for its governmental activities as ofDecember 31, 2012, amounted to $31,452,652. These capital assets include land and land improvements, buildingsand improvements, machinery and equipment and vehicular equipment. The total decrease in the County’s capitalassets for the current fiscal year was approximately 7.6 percent. Major capital asset events during the current fiscalyear included the following:

Capital Asset and Debt Administration

Over $230,000 in computer equipment related purchases for general governmental operations.

The County’s bonded debt increased by $270,000 during the current fiscal year because of scheduled payments onoutstanding bonds and the addition of $1,060,000 long term debt, related to the dental clinic project.

Long term Debt. Debt is classified as long-term if it matures over a period greater than one year. At the end of thecurrent fiscal year, the County had total general obligation debt outstanding of $11,350,000.

Over $300,000 in public safety equipment to benefit Homeland Security.

Over $274,000 in building improvements related to the Dental Clinic project.

Capital Assets (Net of Depreciation)

The County has an “AA-“ rating for general obligation bonds from Standard & Poor’s and an A2 rating from Moody’s.

State statutes limit the amount of general obligation debt a governmental entity may issue to 10 percent of its totalassessed valuation (State Equalized Value). The current debt limitation for the County is $604,021,864 which issignificantly in excess of the County’s outstanding general obligation debt.

Additional information on the County’s long-term debt can be found in Note 8 of this report.

29



·

·

·

·

·

Economic Factors and Next Year’s Budget and Rates

The following factors were considered in preparing the County’s 2013 budget:

Contacting the County’s Financial Management

This financial report is designed to provide a general overview of the County’s finances to all those with an interest inthe government’s finances. Questions concerning any of the information provided in this report or requests foradditional financial information should be addressed to the County of Monroe Finance Department, 125 East SecondStreet, Monroe, Michigan 48161.

Wages for non-union employees were held at 2009 levels. County Commissioner salaries were reduced 5% for2011 by the Monroe County Compensation Commission while the salaries of other elected officials, other than theTreasurer, remain at 2010 levels. The Treasurer's salary was increased by 3.94% for 2013.

The transfer in from revenue sharing reserve fund is budgeted at $668,148 and state revenue sharing/economicvitality incentive program revenues are budgeted at $807,129. This reflects a decrease of $1,568,437 from 2012revenues in this same category.

Transfers from the general fund to other funds have been reduced by $168,886 from the amount budgeted in2012 due to lower expenses from the cost allocation plan and use of fund balances.

In August, 2012, voters approved a millage to fund the operations of the Monroe County Museum and it'sprograms. The millage is for a levy of up to .10 mills per $1,000 of taxable valuation, for a period of ten years,from 2012 through 2021. Accordingly, no general fund appropriation is included in the historical commissionbudget in 2013.

The County has committed to maintaining a fund balance in the general fund that is at least one-twelfth ofoperating expenditures; the 2012 ending balance is well within this amount.

During the current fiscal year, unassigned fund balance in the general fund increased to $6,298,270. The general ruleof thumb is that fund balances can be used to help government weather bad times, but should not be used as a meansof funding routine operations. In the 2013 budget, the County has no plans to use the fund balance of the generalfund.

30

BASIC FINANCIAL STATEMENTS

31


32

COUNTY OF MONROE, MICHIGAN Exhibit A

Statement of Net PositionDecember 31, 2012

Primary Government

Governmental Business-type ComponentActivities Activities Total Units

AssetsCash and cash equivalents 3,041,594$ 3,268,935$ 6,310,529$ 16,242,878$ Investments 26,284,973 7,661,399 33,946,372 3,640,566 Land held for resale - - - 310,000 Receivables, net 8,257,620 9,439,143 17,696,763 90,123,566 Internal balances (144,272) 144,272 - - Due from component units - 1,654 1,654 - Due from primary government - - - 1,070,000 Prepaid items and other assets 61,853 - 61,853 2,210,651 Restricted assets - cash and cash equivalents 1,495,331 - 1,495,331 12,694,206 Loans receivable - 1,969,752 1,969,752 - Advance to component unit 600,000 - 600,000 - Capital assets not being depreciated 218,500 - 218,500 20,040,387 Capital assets being depreciated, net 31,234,152 - 31,234,152 137,371,373

Total assets 71,049,751 22,485,155 93,534,906 283,703,627

Deferred outflow of resourcesDeferred loss on refunding 59,613 - 59,613 -

LiabilitiesAccounts payable and accrued expenses 4,781,150 200,337 4,981,487 8,822,811 Due to component units 1,070,000 - 1,070,000 - Due to primary government - - - 1,654 Unearned revenue 54,012 - 54,012 106,951 Noncurrent liabilities:

Compensated absences due within one year 1,175,006 - 1,175,006 355,381 Compensated absences due beyond one year - - - 681,962 Advance from primary government - - - 600,000 Net other postemployment benefit liability 10,986,300 - 10,986,300 5,542,654 Long-term debt due within one year 912,000 - 912,000 6,598,351 Long-term debt due beyond one year 10,391,991 3,205,000 13,596,991 73,501,678

Total liabilities 29,370,459 3,405,337 32,775,796 96,211,442

Deferred inflows of resourcesProperty taxes 4,863,677 - 4,863,677 5,604,487 Inspections and reviews - - - 50,721

Total deferred inflows of resources 4,863,677 - 4,863,677 5,655,208

Net positionNet investment in capital assets 20,148,661 - 20,148,661 141,039,018 Restricted for: Debt service 129,201 - 129,201 8,004,166 Construction 1,837,644 - 1,837,644 7,225,106 Health and welfare programs 1,713,647 - 1,713,647 - Unrestricted 13,046,075 19,079,818 32,125,893 25,568,687

Total net position 36,875,228$ 19,079,818$ 55,955,046$ 181,836,977$

The accompanying notes are an integral part of these financial statements.

33

COUNTY OF MONROE, MICHIGAN Exhibit B

Statement of ActivitiesFor the Year Ended December 31, 2012

Program Revenues

Operating CapitalCharges Grants and Grants and Net (Expense)

Functions/Programs Expenses for Services Contributions Contributions Revenue

Primary governmentGovernmental activities:

General government 20,920,339$ 4,816,111$ 3,374,975$ -$ (12,729,253)$ Public safety 30,248,077 1,633,150 8,254,860 - (20,360,067) Public works 130,288 - - - (130,288) Health and welfare 12,056,811 1,069,183 4,213,199 - (6,774,429) Community and economic development 514,814 26,307 100,000 - (388,507) Recreation and culture 521,371 5,018 4,908 - (511,445) Interest on long-term debt 412,377 - - - (412,377)

Total governmental activities 64,804,077 7,549,769 15,947,942 - (41,306,366)

Business-type activities:Delinquent tax 155,273 2,009,160 - - 1,853,887 Equipment rental 225,959 294,261 - - 68,302 Imaging services 98,627 78,362 - - (20,265) Engineering 2,075 - - - (2,075) Inmate commissary 164,910 92,696 - - (72,214) Property tax foreclosure 299,867 589,417 - - 289,550 Revolving loan 41,343 - 3,072 - (38,271)

Total business-type activities 988,054 3,063,896 3,072 - 2,078,914

Total primary government 65,792,131$ 10,613,665$ 15,951,014$ -$ (39,227,452)$

Component unitsRoad Commission 20,706,170$ 2,684,828$ 17,466,438$ -$ (554,904)$ Mental Health Authority 28,628,048 22,649,738 5,859,701 - (118,609) Library Services 7,056,280 138,758 67,157 - (6,850,365) Drain Commission 4,224,781 99,286 - 579,419 (3,546,076) County Agency 23,528,037 7,897,672 13,034,469 - (2,595,896)

Total component units 84,143,316$ 33,470,282$ 36,427,765$ 579,419$ (13,665,850)$

continued…

34

COUNTY OF MONROE, MICHIGAN Exhibit B

Statement of ActivitiesFor the Year Ended December 31, 2012

Primary Government

Governmental Business-type ComponentFunctions/Programs Activities Activities Total Units

Changes in net positionNet (expense) revenue (41,306,366)$ 2,078,914$ (39,227,452)$ (13,665,850)$

General revenues:Property taxes 31,094,159 - 31,094,159 5,543,731 Grants and contributions not restricted

to specific programs 2,970,714 - 2,970,714 1,618,153 Other revenue - - - 979,316 Unrestricted investment earnings 714,351 25,413 739,764 87,526 Unrealized gain on investments - - - 11,578

Transfers - internal activities (650) 650 - -

Total general revenues and transfers 34,778,574 26,063 34,804,637 8,240,304

Change in net position (6,527,792) 2,104,977 (4,422,815) (5,425,546)

Net position, beginning of year, as restated 43,403,020 16,974,841 60,377,861 187,262,523

Net position, end of year 36,875,228$ 19,079,818$ 55,955,046$ 181,836,977$

concluded


35


Balance SheetGovernmental FundsDecember 31, 2012

RevenueCounty Sharing

General Health ReserveAssets

Cash and cash equivalents 74,031$ 7,724$ 71,757$ Investments 20,127,916 - 602,784 Taxes receivable 283,148 - - Accounts receivable, net 39,732 - - Due from other governments 1,614,587 246,563 - Due from other funds 2,026,525 3,099,068 - Prepaid items 31,211 - - Inventory - - - Advance to other funds 174,348 - - Advance to component unit 600,000 - -

Total assets 24,971,498$ 3,353,355$ 674,541$

LiabilitiesAccounts payable 626,378$ 201,271$ -$ Accrued wages and fringes 1,175,481 102,414 - Unearned revenue 54,012 - - Due to other governments - 175,000 - Due to component units 1,070,000 - - Due to other funds 10,920,892 - - Advances from other governments - - - Advances from other funds - - -

Total liabilities 13,846,763 478,685 -

Deferred inflow of resourcesTaxes levied for a subsequent period - - -

Fund balancesNonspendable 805,559 - - Restricted 3,062,391 1,712,127 674,541 Committed 915,010 1,162,543 - Assigned 43,505 - - Unassigned (deficit) 6,298,270 - -

Total fund balances 11,124,735 2,874,670 674,541

Total liabilities, deferred inflows of resources and fund balances 24,971,498$ 3,353,355$ 674,541$


36

Exhibit C-1

FederalPrisoner Senior NonmajorHousing Citizen Funds Totals

8,743$ 233,028$ 1,492,416$ 1,887,699$ - 451,928 591,239 21,773,867 - 2,842,962 1,990,073 5,116,183

9,725 - 140 49,597 324,970 - 723,352 2,909,472 415,000 - 4,327,000 9,867,593

- - - 31,211 - - 30,642 30,642 - - - 174,348 - - - 600,000

758,438$ 3,527,918$ 9,154,862$ 42,440,612$

37,686$ 64,588$ 317,040$ 1,246,963$ 125,375 - 376,289 1,779,559

- - - 54,012 - - - 175,000 - - - 1,070,000 - - 210,797 11,131,689 - - 40,000 40,000 - - 150,000 150,000

163,061 64,588 1,094,126 15,647,223

- 2,842,962 2,020,715 4,863,677

- - - 805,559 - 620,368 4,773,100 10,842,527

595,377 - 1,345,970 4,018,900 - - - 43,505 - - (79,049) 6,219,221

595,377 620,368 6,040,021 21,929,712

758,438$ 3,527,918$ 9,154,862$ 42,440,612$

37

COUNTY OF MONROE, MICHIGAN Exhibit C-2

ReconciliationFund Balances for Governmental Fundsto Net Position of Governmental ActivitiesDecember 31, 2012

Fund balances - total governmental funds 21,929,712$

Capital assets used in governmental activities are not financial resources, and therefore notreported in the funds.

Capital assets not being depreciated 218,500 Capital assets being depreciated 83,930,835 Accumulated depreciation (52,773,707)

Internal service funds are used by management to charge the costs of certain activities, such asinsurance and other centralized costs, to individual funds. The assets and liabilities of internalservice funds are included in governmental activities in the statement of net position.

Net position of governmental activities accounted for in internal service funds 7,072,876

Liabilities related to other postemployment benefits are not due in the current period and,therefore, are not reported in the funds.

Other postemployment benefit plan obligation (10,986,300)

Certain liabilities, such as bonds payable, are not due and payable in the current period, andtherefore are not reported in the funds.

Bonds and notes payable (11,350,000) Unamortized deferred loss on refunding 59,613 Unamortized premium on refunding bonds (11,652) Unamortized bond discount 57,661 Accrued interest on long-term liabilities (97,304) Accrued compensated absences (1,175,006)

Net position of governmental activities 36,875,228$


Amounts reported for governmental activities in the statement of net position are different because:

38


39


Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental FundsFor the Year Ended December 31, 2012

RevenueCounty Sharing

General Health ReserveRevenues

Taxes 26,613,259$ -$ -$ Licenses and permits 188,410 310,775 - Intergovernmental revenues 3,216,030 2,439,810 - Contributions from local units 2,184,360 - - Charges for services 4,392,438 736,188 - Fines and forfeits 533,057 - - Interest and rents 66,786 - 6,393 Other revenue 1,881,287 238,576 -

Total revenues 39,075,627 3,725,349 6,393

ExpendituresCurrent:

General government 15,533,981 - - Public safety 17,598,397 - - Public works 130,288 - - Health and welfare 1,564,586 4,537,120 - Community and economic development 512,263 - - Recreation and culture 44,115 - - Other expenditures 78,381 - -

Debt service:Principal - - - Interest - - - Issuance costs - - -

Capital outlay 660,109 6,717 -

Total expenditures 36,122,120 4,543,837 -

Revenues over (under) expenditures 2,953,507 (818,488) 6,393

Other financing sources (uses)Issuance of refunding bonds - - - Transfers in 3,312,122 1,029,501 - Transfers out (6,118,750) (20,932) (3,043,714)

Total other financing sources (uses) (2,806,628) 1,008,569 (3,043,714)

Net change in fund balances 146,879 190,081 (3,037,321)

Fund balances, beginning of year 10,977,856 2,684,589 3,711,862

Fund balances, end of year 11,124,735$ 2,874,670$ 674,541$


40

Exhibit C-3

FederalPrisoner Senior NonmajorHousing Citizen Funds Totals

-$ 2,756,759$ 1,724,141$ 31,094,159$ - - 11,655 510,840

2,277,681 - 5,830,061 13,763,582 - - - 2,184,360

146,341 - 1,109,484 6,384,451 - - 121,421 654,478 - 1,928 627,759 702,866

18,801 13,515 818,535 2,970,714

2,442,823 2,772,202 10,243,056 58,265,450

- - 2,528,706 18,062,687 3,442,549 - 6,003,305 27,044,251

- - - 130,288 - 2,534,512 3,024,091 11,660,309 - - - 512,263 - - 207,993 252,108 - - - 78,381

- - 790,000 790,000 - - 382,582 382,582 - - 18,900 18,900 - - 454,854 1,121,680

3,442,549 2,534,512 13,410,431 60,053,449

(999,726) 237,690 (3,167,375) (1,787,999)

- - 1,060,000 1,060,000 1,157,830 - 3,940,661 9,440,114

- (247,476) (9,892) (9,440,764)

1,157,830 (247,476) 4,990,769 1,059,350

158,104 (9,786) 1,823,394 (728,649)

437,273 630,154 4,216,627 22,658,361

595,377$ 620,368$ 6,040,021$ 21,929,712$

41

COUNTY OF MONROE, MICHIGAN Exhibit C-4

ReconciliationNet Changes in Fund Balances of Governmental Fundsto Change in Net Position of Governmental ActivitiesFor the Year Ended December 31, 2012

Net change in fund balances - total governmental funds (728,649)$

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 reportedas depreciation expense.

Capital outlay 1,121,679 Depreciation expense (3,519,793) Net book value of capital asset disposals (142,267)

Bond proceeds provide current financial resources to governmental funds in the periodissued, but issuing bonds increases long-term liabilities in the statement of net position.Repayment of bond principal is an expenditure in the governmental funds, but therepayment reduces long-term liabilities in the statement of net position.

Principal payments on long-term liabilities 790,000 Bond proceeds (1,060,000)

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 on bonds and amortized bond discount and premium (10,894) Change in other postemployment benefits obligation (2,525,095) Change in accrual for compensated absences (19,633)

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 net revenue (expense) ofinternal service funds is reported with governmental activities.

Net operating income from governmental activities in internal service funds (444,625) Interest revenue from governmental internal service funds 11,485

Change in net position of governmental activities (6,527,792)$


Amounts reported for governmental activities in the statement of activities are different because:

42

COUNTY OF MONROE, MICHIGAN Exhibit D-1

Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and ActualGeneral FundFor the Year Ended December 31, 2012

Actual overOriginal Final (under) Final Budget Budget Actual Budget

RevenuesTaxes 27,191,212$ 27,191,212$ 26,613,259$ (577,953)$ Licenses and permits 182,300 182,300 188,410 6,110 Intergovernmental revenues 2,466,344 3,763,094 3,216,030 (547,064) Contributions from local units 2,081,164 2,109,059 2,184,360 75,301 Charges for services 4,350,389 4,374,153 4,392,438 18,285 Fines and forfeits 601,000 601,000 533,057 (67,943) Interest and rents 60,000 60,000 66,786 6,786 Other revenue 1,856,507 1,867,745 1,881,287 13,542

Total revenues 38,788,916 40,148,563 39,075,627 (1,072,936)


General government 16,072,879 16,153,010 15,533,981 (619,029) Public safety 17,132,972 17,907,152 17,598,397 (308,755) Public works 83,489 130,288 130,288 - Health and welfare 1,566,250 1,618,229 1,564,586 (53,643) Community and economic development 431,695 461,111 512,263 51,152 Recreation and cultural 44,115 44,115 44,115 - Other expenditures 760,885 464,155 78,381 (385,774)

Capital outlay 340,000 1,146,345 660,109 (486,236)

Total expenditures 36,432,285 37,924,405 36,122,120 (1,802,285)

Revenues over expenditures 2,356,631 2,224,158 2,953,507 729,349

Other financing sources (uses)Transfers in 3,361,969 3,361,969 3,312,122 (49,847) Transfers out (6,118,100) (6,172,099) (6,118,750) 53,349

Total other financing (uses) (2,756,131) (2,810,130) (2,806,628) 3,502

Net change in fund balance (399,500) (585,972) 146,879 732,851

Fund balance, beginning of year 10,977,856 10,977,856 10,977,856 -

Fund balance, end of year 10,578,356$ 10,391,884$ 11,124,735$ 732,851$


43


Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and ActualCounty Health Special Revenue FundFor the Year Ended December 31, 2012


RevenuesLicenses and permits 393,000$ 393,000$ 310,775$ (82,225)$ Intergovernmental revenues 2,577,378 2,672,543 2,439,810 (232,733) Charges for services 742,893 787,893 736,188 (51,705) Other revenue 183,694 196,694 238,576 41,882

Total revenues 3,896,965 4,050,130 3,725,349 (324,781)

ExpendituresCurrent -

Health and welfare 5,249,339 5,404,879 4,537,120 (867,759) Capital outlay - 6,800 6,717 (83)

Total expenditures 5,249,339 5,411,679 4,543,837 (867,842)

Revenues over (under) expenditures (1,352,374) (1,361,549) (818,488) 543,061

Other financing sources (uses)Transfers in 1,029,501 1,029,501 1,029,501 - Transfers (out) (20,932) (20,932) (20,932) -

Total other financing (uses) 1,008,569 1,008,569 1,008,569 -





44


Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and ActualRevenue Sharing Reserve Special Revenue FundFor the Year Ended December 31, 2012


RevenuesInterest and rents -$ -$ 6,393$ 6,393$

Other financing usesTransfers out (3,049,466) (3,049,466) (3,043,714) 5,752

Net change in fund balance (3,049,466) (3,049,466) (3,037,321) 12,145


Fund balance, end of year 662,396$ 662,396$ 674,541$ 12,145$


45


Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and ActualFederal Prisoner Housing Special Revenue FundFor the Year Ended December 31, 2012


RevenuesIntergovernmental revenues 2,182,835$ 2,182,835$ 2,277,681$ 94,846$ Charges for services 248,000 248,000 146,341 (101,659) Other revenue 1,500 1,500 18,801 17,301

Total revenues 2,432,335 2,432,335 2,442,823 10,488


Public safety 3,690,165 3,690,165 3,442,549 (247,616)


Other financing sourcesTransfers in 1,157,830 1,157,830 1,157,830 -


Fund balance, beginning of year 437,273 437,273 437,273 -



46


Statement of Revenues, Expenditures and Changes in Fund BalanceBudget and ActualSenior Citizen Special Revenue FundFor the Year Ended December 31, 2012


RevenuesTaxes 2,856,540$ 2,856,540$ 2,756,759$ (99,781)$ Interest and rents - - 1,928 1,928 Other revenue 9,000 9,000 13,515 4,515

Total revenues 2,865,540 2,865,540 2,772,202 (93,338)


Health and welfare 2,597,881 2,597,881 2,534,512 (63,369)

Revenues over expenditures 267,659 267,659 237,690 (29,969)

Other financing usesTransfers out (291,571) (291,571) (247,476) 44,095

Net change in fund balance (23,912) (23,912) (9,786) 14,126

Fund balance, beginning of year 630,154 630,154 630,154 -



47

COUNTY OF MONROE, MICHIGAN Exhibit E-1

Statement of Net PositionProprietary FundsDecember 31, 2012

GovernmentalBusiness-type Activities / Enterprise Funds Activities

DelinquentTax Nonmajor Internal

Revolving Funds Totals ServiceAssets

Current assets:Cash and cash equivalents 2,385,707$ 883,228$ 3,268,935$ 1,153,895$ Investments 6,659,337 1,002,062 7,661,399 4,511,106 Taxes receivable - delinquent 8,364,750 - 8,364,750 - Accounts receivable - 39,445 39,445 182,368 Interest receivable 1,044,186 - 1,044,186 - Due from other governments - 257 257 - Due from other funds 1,190,000 - 1,190,000 1,119,824 Due from component units - 1,654 1,654 - Loans receivable due within one year - 48,750 48,750 -

Total current assets 19,643,980 1,975,396 21,619,376 6,967,193 Noncurrent assets:

Loans receivable due beyond one year - 1,921,002 1,921,002 - Restricted assets - cash and cash equivalents - - - 1,495,331 Capital assets being depreciated, net - - - 77,024

Total noncurrent assets - 1,921,002 1,921,002 1,572,355

Total assets 19,643,980 3,896,398 23,540,378 8,539,548

LiabilitiesCurrent liabilities:

Accounts payable 163,149 32,123 195,272 55,055 Accrued wages and fringes 3,269 11,181 14,450 - Compensated absences payable - - - 18,366 Claims payable - - - 1,187,987 Due to other governments 110 - 110 - Due to other funds 1,045,728 - 1,045,728 -

Total current liabilities 1,212,256 43,304 1,255,560 1,261,408 Noncurrent liabilities:

Advances from other funds - - - 24,348 Claims payable 180,916 Long-term debt due beyond one year 3,205,000 - 3,205,000 -

Total noncurrent liabilities 3,205,000 - 3,205,000 205,264

Total liabilities 4,417,256 43,304 4,460,560 1,466,672

Net positionNet investment in capital assets - - - 77,024 Unrestricted 15,226,724 3,853,094 19,079,818 6,995,852



48


Statement of Revenues, Expenses and Changes in Fund Net PositionProprietary FundsFor the Year Ended December 31, 2012



Revolving Funds Totals ServiceOperating revenues

Charges for services -$ 897,854$ 897,854$ 71,043$ Interest on taxes 1,523,716 - 1,523,716 - Interest on loan repayments - 3 3 - Tax administration fees 485,444 - 485,444 - Employer contributions - - - 5,438,455 Employee contributions - - - 634,048 Other operating revenue - 156,882 156,882 193,844

Total operating revenues 2,009,160 1,054,739 3,063,899 6,337,390

Operating expenseCost of services - 831,428 831,428 - Administrative costs 124,312 - 124,312 249,669 Benefit payments - - - 5,996,278 Liability insurance - - - 479,043 Depreciation - 1,353 1,353 57,025

Total operating expense 124,312 832,781 957,093 6,782,015

Operating income (loss) 1,884,848 221,958 2,106,806 (444,625)

Nonoperating revenues (expense)Interest and rentals 23,127 2,286 25,413 11,485 Intergovernmental revenue - 2,069 2,069 - Donations - 1,000 1,000 - Interest expense (30,961) - (30,961) -

Total nonoperating revenue (expenses) (7,834) 5,355 (2,479) 11,485

Income before transfers 1,877,014 227,313 2,104,327 (433,140)

TransfersTransfers in - 650 650 -

Change in net position 1,877,014 227,963 2,104,977 (433,140)

Net position, beginning of year 13,349,710 3,625,131 16,974,841 7,506,016



49


Statement of Cash FlowsProprietary FundsFor the Year Ended December 31, 2012



Revolving Funds Totals Service

Cash flows from operating activitiesCash received from customers 2,167,225$ 1,429,874$ 3,597,099$ 7,168,717$ Collections of housing loan principal - 16,028 16,028 - Collections of housing loan interest - 3 3 - Cash payments for delinquent taxes (90,765) - (90,765) - Cash payments to suppliers for goods and services (124,312) (556,789) (681,101) (193,588) Cash payments to employees for services - (302,503) (302,503) - Cash payments for employee benefits - - - (6,456,819) Repayment of loan to other fund - - - 267,229

Net cash provided by operating activities 1,952,148 586,613 2,538,761 785,539

Cash flows from noncapital financing activitiesIntergovernmental revenue - 2,069 2,069 - Donations - 1,000 1,000 - Repayment of long-term advances - - - (22,730) Proceeds from issuing long-term debt 7,400,000 - 7,400,000 - Principal payments (9,710,000) - (9,710,000) - Interest paid on long-term debt (30,962) - (30,962) - Transfers in - 650 650 -

Net cash used by noncapital financing activities (2,340,962) 3,719 (2,337,243) (22,730)

Cash flows from capital and relatedfinancing activities

Purchase of capital assets - - - (21,382)

Cash flows from investing activitiesProceeds from maturity of investments 3,003,525 (440) 3,003,085 745,512 Purchase of investments (2,755,391) - (2,755,391) - Interest received 23,127 2,286 25,413 11,485

Net cash provided by investing activities 271,261 1,846 273,107 756,997

Change in cash and cash equivalents (117,553) 592,178 474,625 1,498,424

Cash and cash equivalents, beginning of year 2,503,260 291,050 2,794,310 1,150,802

Cash and cash equivalents, end of year 2,385,707$ 883,228$ 3,268,935$ 2,649,226$

continued…


50


Statement of Cash FlowsProprietary FundsFor the Year Ended December 31, 2012



Revolving Funds Totals ServiceCash flows from operating activities

Operating income (loss) 1,884,848$ 221,958$ 2,106,806$ (444,625)$ Adjustments to reconcile operating income (loss) to

net cash provided by operating activities:Depreciation - 1,353 1,353 57,025 Bad debt expense - 843 843 - Change in:

Taxes receivable - delinquent 1,268,479 - 1,268,479 - Accounts receivable - (12,438) (12,438) (603,918) Due from other governments - 133,000 133,000 Interest receivable 216,198 - 216,198 - Due from other funds (969,772) 387,576 (582,196) 1,702,474 Loans receivable - 15,185 15,185 - Accounts payable (139,682) (157,324) (297,006) (15,740) Accrued wages and fringes - 3,130 3,130 - Compensated absences payable - - - (15,125) Other accrued liabilities (30) - (30) 105,448 Due to other funds (307,893) (6,670) (314,563) -

Net cash provided by operating activities 1,952,148$ 586,613$ 2,538,761$ 785,539$

Noncash transactionsThere were no noncash transactions during the fiscal year.

concluded


51

COUNTY OF MONROE, MICHIGAN Exhibit F-1

Statement of Fiduciary Net PositionDecember 31, 2012

Pension andOther Employee

Benefit AgencyTrust Funds Funds

AssetsCash and cash equivalents 884,304$ 2,006,017$ Investments at fair value:

U.S. treasuries 22,209,743 751,335 U.S. agencies 11,628,741 - Foreign government bonds 16,012,552 - Corporate bonds 36,119,436 - Municipal bonds 548,237 - Foreign corporate bonds 85,500 - Bond mutual fund 7,266,086 - Domestic equities 49,811,173 - International equities 13,838,182 - International preferred stock 71,982 - American depository receipts 33,165,943 - Domestic real estate investment trusts 2,276,216 - Collateralized mortgage obligations 2,502,772 - Money market accounts 10,671,043 -

Contributions receivable 757,447 - Foreign currency forward contracts receivable 30,267 - Interest receivable 843,361 -

Total assets 208,722,985 2,757,352$

LiabilitiesAccounts payable 907,096 -$ Obligation for impaired investment

of securities lending collateral 347,334 - Due to other governments - 923,943 Undistributed taxes - current levy - 1,036,690 Undistributed taxes - other - 69,985 Other undistributed receipts - 726,734

Total liabilities 1,254,430 2,757,352$

Net position held in trust for pensionbenefits and other purposes 207,468,555$


52

COUNTY OF MONROE, MICHIGAN Exhibit F-2

Statement of Changes in Fiduciary Net PositionPension and Other Employee Benefit Trust FundsFor the Year Ended December 31, 2012

AdditionsInvestment income:

From investing activitiesNet appreciation in fair value of investments 12,484,180$ Interest and dividends 5,831,549

Total investment gain 18,315,729 Less: investment management fees (1,164,458)

Net gain from investing activities 17,151,271

From securities lending activitiesGross earnings 20,470 Borrower rebates 14,009 Security lending fees (10,337)

Net gain from securities lending activities 24,142

Total net investment income 17,175,413

Contributions:Employer 13,584,755 Employee 761,138 Retiree and other 481,397 Time purchase 419,446

Total contributions 15,246,736

Total additions 32,422,149

DeductionsBenefit payments 17,836,489 Refunds of contributions 497,246 Administrative expenses/premiums paid 257,434

Total deductions 18,591,169

Net additions to net position held in trust 13,830,980

Net position held in trust for pension benefits and other purposesBeginning of year 193,637,575

End of year 207,468,555$


53


Combining Statement of Net PositionComponent UnitsDecember 31, 2012

Road Mental DrainCommission Health Library Commission

AssetsCash and cash equivalents 1,527,083$ 7,063,692$ 3,528,427$ 2,004,284$ Investments - - - 1,302,776 Land held for resale 310,000 - - - Taxes receivable - - 5,604,487 - Special assessments receivable - - - 2,021,689 Unlevied special assessments - - - 8,743,997 Accounts receivable 229,952 274,099 193,086 - Due from other governments 5,245,153 819,812 - - Due from primary government - - - 1,070,000 Inventories 1,274,492 - - - Prepaid items 98,668 640,050 72,764 - Deposits - - - - Restricted assets - cash and cash equivalents - - - - Leases receivable - - - - Capital assets not being depreciated 19,640,813 54,000 - - Capital assets being depreciated, net 82,635,852 546,808 10,049,327 21,597,120

Total assets 110,962,013 9,398,461 19,448,091 36,739,866

LiabilitiesAccounts payable and accrued expenses 458,174 2,742,661 156,851 66,529 Accrued wages and fringes - - - - Accrued interest payable 72,757 - - 73,332 Due to other governments 21,000 1,032,964 - - Due to primary government - - - 1,654 Deposits payable 1,076,261 - - - Unearned revenue - 94,170 12,781 - Compensated absences due within one year 33,770 35,042 219,060 - Compensated absences due beyond one year 450,569 198,573 32,820 - Advances from primary government - - - 600,000 Net other postemployment benefit liability 5,542,654 - - - Long-term debt due within one year 1,268,484 - - 1,208,100 Long-term debt due beyond one year 3,929,431 - - 7,241,869

Total liabilities 12,853,100 4,103,410 421,512 9,191,484

Deferred inflows of resourcesProperty taxes - - 5,604,487 - Inspections and reviews - - - -

Total deferred inflows of resources - - 5,604,487 -

Net positionNet investment in capital assets 97,676,492 600,808 10,049,327 13,147,151 Restricted for debt service 145,600 - 8,192 7,835,290 Restricted for construction - - - 6,565,941 Unrestricted 286,821 4,694,243 3,364,573 -



54

Exhibit G-1

CountyAgency Total

2,119,392$ 16,242,878$ 2,337,790 3,640,566

- 310,000 - 5,604,487 - 2,021,689 - 8,743,997

1,218,809 1,915,946 6,574,704 12,639,669

- 1,070,000 107,477 1,381,969 15,700 827,182 1,500 1,500

12,694,206 12,694,206 59,197,778 59,197,778

345,574 20,040,387 22,542,266 137,371,373

107,155,196 283,703,627

2,591,214 6,015,429 60,220 60,220

401,695 547,784 62,761 1,116,725

- 1,654 6,392 1,082,653

- 106,951 67,509 355,381

- 681,962 - 600,000 - 5,542,654

4,121,767 6,598,351 62,330,378 73,501,678

69,641,936 96,211,442

- 5,604,487 50,721 50,721

50,721 5,655,208

19,565,240 141,039,018 15,084 8,004,166

659,165 7,225,106 17,223,050 25,568,687

37,462,539$ 181,836,977$

55


Combining Statement of ActivitiesComponent UnitsFor the Year Ended December 31, 2012

Road Mental DrainCommission Health Library Commission

ExpensesRoad Commission 20,706,170$ $ - $ - -$ Mental Health Authority - 28,628,048 - - Library Services - - 7,056,280 - Drain Commission - - - 4,224,781 County Agency - - - -

Total expenses 20,706,170 28,628,048 7,056,280 4,224,781

Program revenuesCharges for services 2,684,828 22,649,738 138,758 99,286 Operating grants and contributions 17,466,438 5,859,701 67,157 - Capital grants and contributions - - - 579,419

Total program revenues 20,151,266 28,509,439 205,915 678,705

Net (expense) revenue (554,904) (118,609) (6,850,365) (3,546,076)

General revenuesProperty taxes - - 5,543,731 - Grants and contributions not restricted

to specific programs - - 1,331,544 - Other revenue 877,919 - 101,397 - Unrestricted investment earnings - 34,326 11,242 2,776 Unrealized gain on investments - - - -

Total general revenues 877,919 34,326 6,987,914 2,776

Change in net position 323,015 (84,283) 137,549 (3,543,300)

Net position, beginning of year 97,785,898 5,379,334 13,284,543 31,091,682



56

Exhibit G-2

CountyAgency Total

-$ 20,706,170$ - 28,628,048 - 7,056,280 - 4,224,781

23,528,037 23,528,037

23,528,037 84,143,316

7,897,672 33,470,282 13,034,469 36,427,765

- 579,419

20,932,141 70,477,466

(2,595,896) (13,665,850)

- 5,543,731

286,609 1,618,153 - 979,316

39,182 87,526 11,578 11,578

337,369 8,240,304

(2,258,527) (5,425,546)

39,721,066 187,262,523

37,462,539$ 181,836,977$

57


58

NOTES TO BASIC FINANCIAL STATEMENTS

59


60


Notes To Financial Statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Blended Component Unit

Discretely Presented Component Units

Monroe County (the “County” or “government”) was organized in 1811 and covers an area of 560 squaremiles divided into 15 townships, 5 villages and 4 cities. The County seat is located in the City of Monroe.The County operates under an elected Board of Commissioners (nine members) and provides services toits estimated 150,763 residents in many areas including law enforcement, administration of justice,community enrichment and development, and human services.

The accompanying financial statements present Monroe County (the primary government) and itscomponent units. The financial data of the component units are included in the County’s reporting entitybecause of the significance of their operational or financial relationships with the County.

Monroe County Building Authority - The Monroe County Building Authority was created under theprovisions of Act 31, Public Acts of 1948 (Extra Session), as amended, and is governed by a five-memberboard appointed by the Monroe County Board of Commissioners. The purpose of the Authority is tofinance, through tax-exempt bonds, the construction of public buildings for use by the County, with thebonds secured by lease agreements with the County and retired through lease payments from the County.Although it is legally separate from the County, the Monroe County Building Authority is reported as if itwere part of the primary government because its sole purpose is to finance the construction of andimprovements to the County’s public buildings. As a result, the County has included in its financialstatements the Authority’s debt service and capital projects funds. Also, the County has incorporated thebond issues into its long-term debt and capital assets are included in governmental capital assets. Aseparate report is prepared for the Building Authority and may be obtained from its administrative officesat 125 East Second Street, Monroe, Michigan 48161.

Monroe County Road Commission - The Monroe County Road Commission, which was establishedpursuant to the County Road Law (MCL 224.1), operates under a three-member Board of County RoadCommissioners of which one member is appointed by the Monroe County Board of Commissioners and twomembers are elected. The Road Commission may not issue debt without the County's approval and anytax levy is subject to County Board of Commissioners approval. If approval is granted, the RoadCommission's taxes are levied under the taxing authority of the County, as approved by the Countyelectors, and would be included as part of the County's total tax levy as well as reported in the CountyRoad Commission. Complete financial statements that are separately audited may be obtained from theadministrative office at Monroe County Road Commission, 840 South Telegraph Road, Monroe, Michigan48161.

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Community Mental Health Authority - The Monroe County Community Mental Health Services Board wasestablished in 1964 to provide mental health services to residents of Monroe County under the provisionsof Act 54, Public Acts of 1963, as amended. The current provision is Act 258 Public Acts of 1974. TheMonroe County Community Mental Health Services Board was an agency of the County of Monroe andserved as a policy making board only. This status as an agency of the County of Monroe ended December31, 1996. On January 1, 1997, the Monroe County Community Mental Health Services Board, with all itsassets, debt obligations and personnel, became the Monroe County Community Mental Health Authority.Upon receiving certification by the Michigan Department of Community Health under Section 232a of theMichigan Mental Health Code and through a resolution adopted by the Monroe County Board ofCommissioners on October 1, 1996, it became an authority. As an authority, the Monroe CountyCommunity Mental Health Authority has become an autonomous and distinct legal entity separate andapart from the County of Monroe.

The Monroe County Board of Commissioners has the authority to appoint the voting members of theCommunity Mental Health Authority Board of Directors, which governs the Authority. By law, the primarygovernment (Monroe County) can remove appointed members of the component unit’s (Community MentalHealth Authority) governing body at will. The Authority is also accountable to the County of Monroe andmay be terminated by a majority vote of either the Monroe County Board of Commissioners or the MonroeCounty Community Mental Health Authority Board of Directors. Complete financial statements that areseparately audited may be obtained from the administrative office at Community Mental HealthAuthority, 1001 South Raisinville Road, Monroe, Michigan 48161.

Monroe County Library System - The Monroe County Library System operates under the provisions ofSection 397.301 of the 1979 Compiled Laws and is governed by a five-member board appointed by theMonroe County Board of Commissioners. As recommended by the Michigan Committee on GovernmentalAccounting and Auditing Statement No. 4, the Monroe County Library System is treated as a discretelypresented component unit. As well as appointing the Library Board, the County has the ability to imposeits will over the County Library System and would incur a financial benefit or burden if operations of theLibrary System ceased or changed significantly. The purpose of the Monroe County Library System is toaccount for earmarked revenue from penal fines, a special millage set aside for library operations, andstate grants earmarked to provide public library services. Complete financial statements that areseparately audited may be obtained from the administrative office at Monroe County Library System,3700 South Custer Road, Monroe, Michigan 48161.

Monroe County Drain Commission - Each of the drainage districts established pursuant to the Drain Codeof 1956 and included in the financial statements of the Monroe County Drain Commission are separatelegal entities with the power to contract; to sue and be sued; and to hold, manage and dispose of realand personal property. The Statutory Drain Board consists of the Drain Commissioner, the Chair of theCounty Board of Commissioners, and one other member of the Board of Commissioners. The DrainCommissioner is responsible for the construction and maintenance of storm drains within the County. TheCounty is financially accountable for the Drain Commission because the Board of Commissioners approvesthe budget for the Drain Commission. The full faith and credit of the County is often given for the long-term debt of the drainage districts. A separate report is not prepared for the Monroe County DrainCommission.

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Complete financial statements of the individual component units that are separately audited can beobtained from their respective administrative offices as noted above or the County Clerk's office at 125East Second Street, Monroe, MI 48161.

Related disclosures for the County's component units have been incorporated into the notes to the basicfinancial statements and are referenced to the above mentioned component units when applicable.

Fiscal Year Ends Other Than December 31, 2012

County Agency - In 1968, the County of Monroe entered into a program of water supply and sanitarysewer facility construction under Act 342, Public Acts of 1939, as amended. Pursuant to this Act, theCounty Board of Commissioners appointed the Monroe County Drain Commissioner as the County Agency.The Drain Commissioner as County Agency may not issue debt or levy a special assessment except uponresolution adopted by the County Board of Commissioners. The County Agency manages water supply andsanitary sewer system construction projects of other separate legal units of government. The Countypledges its full faith and credit for bonds to finance the projects, but title passes to the local unit whenthe debt is retired. In addition, the County Agency oversees debt retirement of bonded debt that wasused to finance the construction projects that it has managed, and operates and maintains water supplyand sanitary sewer systems for other local units of government as appointed by the Board ofCommissioners. The County Agency also handles the billing and collection of utility bills when contractedto do so by local units of government. Complete financial statements that are separately audited may beobtained from the administrative office at Monroe County Drain Commissioner County Agency, 1005 SouthRaisinville Road, Monroe, Michigan 48161.

The financial information presented in this report is for the fiscal year ended December 31, 2012, exceptfor the Community Mental Health Authority, which is for the fiscal year ended September 30, 2012.

Other Related Organization

A related organization is a legal entity for which the government appoints a voting majority of thegoverning body, but for which it is not financially accountable. Monroe County has the following relatedorganization:

County of Monroe Hospital Finance Authority - is governed by a five-member board appointed by theChairman of the Monroe County Board of Commissioners, with the approval of the majority of the entiremembership of the Monroe County Board of Commissioners. No member of the Board of Commissionersmay serve on the Hospital Finance Authority Board. The County of Monroe Hospital Finance Authority (the“Authority”) is a legally separate entity established to facilitate nonpublic, nonprofit hospitals inobtaining financing or refinancing for capital improvements. To accomplish this purpose, the Authority isauthorized to issue bonds for the purpose of making related loans to the hospitals. Because the Authoritydoes not provide a financial benefit or burden to the County and the County does not have the ability toimpose its will, the Authority is not reported as a component unit of the County.

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The statement of activities demonstrates the degree to which the direct expenses of a given function orsegment are offset by program revenues. Direct expenses are those that are clearly identifiable with aspecific function or segment. Program revenues include: (1) charges to customers or applicants whopurchase, use, or directly benefit from goods, services, or privileges provided by a given function orsegment, and (2) grants and contributions that are restricted to meeting the operational or capitalrequirements of a particular function or segment. Taxes and other items not properly included amongprogram revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciaryfunds, even though the latter are excluded from the government-wide financial statements. Majorindividual governmental funds and major individual enterprise funds are reported as separate columns inthe fund financial statements.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focusand the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements.Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless ofthe timing of related cash flows. Property taxes are recognized as revenues in the year for which they arelevied. After March 1, the delinquent tax revolving fund pays the County for any outstanding taxes as ofthat date. Grants and similar items are recognized as revenue as soon as all eligibility requirementsimposed by the provider have been met. Agency funds, a type of fiduciary fund, are unlike all other typesof funds, reporting only assets and liabilities. Thus, agency funds cannot be said to have a measurementfocus. They do, however, use the accrual basis of accounting to recognize receivables and payables.

Governmental fund financial statements are reported using the current financial resources measurementfocus and the modified accrual basis of accounting. Revenues are recognized as soon as they are bothmeasurable and available. Revenues are considered to be available when they are collectible within thecurrent period or soon enough thereafter to pay liabilities of the current period. For this purpose, thegovernment considers revenues to be available if they are collected within 60 days of the end of thecurrent fiscal period, except for reimbursement-based grants that use one year. Expenditures generallyare recorded when a liability is incurred, as under accrual accounting. However, debt serviceexpenditures, as well as expenditures related to compensated absences and claims and judgments, arerecorded only when payment is due.

Government-wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement ofactivities) report information on all of the nonfiduciary activities of the primary government and itscomponent units. For the most part, the effect of interfund activity has been removed from thesestatements. Governmental activities, which normally are supported by taxes and intergovernmentalrevenues, are reported separately from business-type activities, which rely to a significant extent on feesand charges for support. Likewise, the primary government is reported separately from certain legallyseparate component units for which the primary government is financially accountable.

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County health fund – This fund is used to account for the activities of delivering an array of publichealth services to residents of the County. Monies are provided by federal, state, and countyappropriations, contributions, and charges for services.

The County reports the following major proprietary fund:

Delinquent tax revolving fund – This enterprise fund accounts for the County’s annual purchase ofdelinquent real property taxes from each of the local taxing units within the County and the ultimatecollection from the property owners of the delinquent taxes with penalty and interest. The fund alsoaccounts for the County’s issuance of debt when needed (to provide cash flow for the purchase of thetaxes) and for the resulting debt service payments.

Additionally, the County reports the following fund types:

Special revenue funds - These funds account for revenue from specific revenue sources (other thanmajor capital projects) and related expenditures which are restricted for specific purposes byadministrative action or law.

Debt service fund - This fund is used to record revenues which are restricted for the payment ofprincipal and interest on debt recorded as long‑term obligations of the governmental activities.

Property taxes, intergovernmental revenue, charges for services and interest associated with the currentfiscal period are all considered to be susceptible to accrual and so have been recognized as revenues ofthe current fiscal period. Only the portion of special assessments receivable due within the current fiscalperiod is considered to be susceptible to accrual as revenue of the current period. All other revenue itemsare considered to be measurable and available only when cash is received by the County.

The County reports the following major governmental funds:

General fund – This is the County’s primary operating fund. It accounts for all financial resources ofthe general government, except those required to be accounted for in another fund.

Capital projects fund - This fund is used to account for nonmajor renovation/construction projects andthe acquisition or construction of facilities other than those financed by proprietary fund operations.

Revenue sharing reserve fund – This fund is used to account for activities related to the establishmentof a fund used to restrict current property tax collections that will supplant future year state revenuesharing payments.

Federal prisoner housing fund – This fund is used to account for the activity of the second jail facility,which houses both federal ICE inmates, as well as local inmates. Monies are generated through thehousing of federal ICE inmates, county appropriations to support housing of local inmates, and chargesfor services for such things as inmate phone use.

Senior citizen fund – This fund is used to account for the special tax levy and general fundappropriation for services and special programs for senior citizens.

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Agency funds – These funds account for assets collected and held in a custodial capacity on behalf ofoutside parties and other governments, including fines, tax collections, fees, licenses and permits.

As a general rule, the effect of interfund activity has been eliminated from the government-widefinancial statements. Exceptions to this general rule are payments-in-lieu of taxes and various otherfunctions of the government. Elimination of these charges would distort the direct costs and programrevenues reported for the various functions concerned.

Amounts reported as program revenues include: 1) charges to customers or applicants for goods,services, or privileges provided; 2) operating grants and contributions; and 3) capital grants andcontributions, including special assessments. Internally dedicated resources are reported as generalrevenues rather than as program revenues. Likewise, general revenues include all taxes.

Enterprise funds - These funds are used to report any activity for which a fee is charged to externalusers for goods or services.

Internal service funds – These funds account for operations that provide services (such as the County’stelephone system, self-insurance, and equipment purchases) to other departments or agencies of theCounty, or to other governments, on a cost-reimbursement basis.

Pension and other employee benefit trust funds – These funds account for the activities of theEmployees’ Retirement System and the retiree health insurance program for qualified employees.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods inconnection with a proprietary fund’s principal ongoing operations. The principal operating revenues andexpenses of the delinquent tax revolving fund and of the government’s internal service funds are chargesto customers for sales and services, administrative expenses, and depreciation on capital assets. Allrevenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the government’s policy to userestricted resources first, then unrestricted resources as they are needed.

Assets, Liabilities, Deferred Outflows/Inflows and Net Position or Equity

Deposits and Investments

The government’s cash and cash equivalents are considered to be cash on hand, demand deposits, andshort-term investments with original maturities of three months or less from the date of acquisition.

Investments are stated at fair value, which is determined as follows: (a) short-term investments arereported at cost, which approximates fair value; (b) securities traded on a national or internationalexchange are valued at the last reported sales price at current exchange rates; (c) investments that donot have established market values are reported at estimated fair value; and (d) cash deposits arereported at carrying amounts which reasonably approximates fair value. Earnings from investments areallocated to various funds as required by federal regulations, state statutes, and local ordinances.

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State statutes authorize the County to deposit in the accounts of federally insured banks, credit unions,and savings and loan associations, and to invest in obligations of the U.S. Treasury, certain commercialpaper, repurchase agreements, bankers acceptances, and mutual funds composed of otherwise legalinvestments (except those with a fluctuating per share value).

Receivables and Payables

Transactions between funds that are representative of lending/borrowing arrangements and areoutstanding at the end of the fiscal year are referred to as either "interfund receivables/payables" (i.e.,the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion ofinterfund loans). All other outstanding balances between funds are reported as "due to/from other funds."Any residual balances outstanding between the governmental and business-type activities are reported inthe government-wide financial statements as “internal balances.”

Advances between funds, as reported in the fund financial statements, are shown as nonspendable fundbalance in the applicable governmental funds to indicate they are not available for appropriation and arenot expendable available financial resources.

Inventories and Prepaid Items

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,drains, and similar items), are reported in the applicable governmental or business-type activitiescolumns in the government-wide financial statements. For the County, infrastructure exists in the DrainCommission and Road Commission component units. The capitalization threshold for infrastructure is$25,000. Only infrastructure assets acquired subsequent to 1980 have been reported. Capital assets otherthan infrastructure assets are defined by the government as assets with an initial individual cost of morethan $5,000 and an estimated useful life in excess of one year. Such assets are valued at cost wherehistorical records are available and at an estimated historical cost where no historical records exist.Donated capital assets are valued at their estimated fair value as of the donation date. The costs ofnormal maintenance and repairs that do not add to the value of assets or materially extend asset lives arenot capitalized. Major outlays for capital assets and improvements are capitalized as projects areconstructed.

Inventories for the County Agency component unit are valued at cost, using the first-in first-out method.

Inventories for the Road Commission component unit are priced at cost as determined using an averagecost method. Inventory items are charged to road construction and maintenance, equipment repairs andoperations, as used.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded asprepaid items. The County establishes a nonspendable fund balance for all prepaid items.

Restricted Assets

Certain resources are classified as restricted assets on the statement of net position because funds are set aside for debt retirement of general obligation bonds, construction, capital asset replacement, vehicles,necessary building improvement requirements, and general liability claims.

Capital Assets

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Assets Years

Buildings 30-50Building improvements 20Machinery and equipment 5-10Vehicles 5-7Public domain infrastructure 8-50

Deferred Outflows of Resources

Depreciation on the capital assets (including infrastructure) of the primary government, as well as thecomponent units, is computed using the straight-line or sum-of-the-years digits method over the followingestimated useful lives:

Provisions for depreciation are computed at rates designed to amortize the cost of the assets over theestimated useful lives of those assets.

Long-term Obligations

In addition to assets, the statement of financial position will sometimes report a separate section fordeferred outflows of resources. This separate financial statement element, deferred outflows ofresources, represents a consumption of net position that applies to future periods and so will not berecognized as an outflow of resources (expense/expenditure) until then. The government only has oneitem that qualifies for reporting in this category. It is the deferred charge on refunding reported in thegovernment-wide statement of net position. A deferred charge on refunding results from the differencein the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortizedover the shorter of the life of the refunded or refunding debt.

In the government-wide financial statements and proprietary fund type statements, long-term debt andother 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 aredeferred and amortized over the life of the bonds using the straight-line method which approximates theeffective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, aswell as bond issuance costs, during the current period. The face amount of debt issued is reported asother financing sources. Issuance costs, whether or not withheld from the actual debt proceeds received,are reported as debt service expenditures.

Compensated Absences

The County has an accrued liability to its employees for accumulated vested vacation benefits of$1,175,006 at December 31, 2012. The County's employment policy provides that vacation days can becarried over one year from the end of the calendar year in which they are earned. Vacation days areforfeited if they are not taken within the two-year period. This policy applies to all employees exceptRoad Commission employees.

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Deferred Inflows of Resources

2. BUDGETS AND BUDGETARY ACCOUNTING

Governmental funds report nonspendable fund balance for amounts that cannot be spent because theyare 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 theresources by grantors, contributors, or laws or regulations of other governments. Committed fundbalance is reported for amounts that can be used for specific purposes pursuant to constraints imposed byformal action of the government’s highest level of decision making authority, the Board ofCommissioners. A formal resolution of the Board of Commissioners is required to establish, modify orrescind a fund balance commitment. Assigned fund balance is reported for amounts that are constrainedby the government’s intent to be used for specific purposes, but are neither restricted nor committed.The Board of Commissioners has delegated the authority to assign fund balance to the Director ofAdministrative Services or the Director of Fiscal Services through adoption of County policy number 301.Unassigned fund balance is the residual classification used for a general fund.

Annual budgets are adopted by the County Board of Commissioners for the general and special revenuefunds. The budgetary basis of accounting does not differ significantly from the modified accrual basisused to reflect the actual revenues and expenditures for these funds. All annual appropriations lapse atfiscal year end.

When the County incurs an expenditure for purposes for which various fund balance classifications can beused, it is the County’s policy to use restricted fund balance first, then committed, assigned, and finallyunassigned fund balance, if any.

As of July 1, 1986, all accumulated sick leave for employees was frozen and placed in a bank. Regular full-time non-union employees with banked sick days may utilize them for illness. Unused sick days aremaintained in the bank and the employee shall be paid for one-half of those unused days at the time theemployee terminates employment. At December 31, 2012, the County has a liability of $18,366 for thebanked sick time recorded in the financial statements of the banked sick pay fund, an internal servicefund. The County's current employment policy for sick leave calls for yearly payout of one-half of theunused balance. The remaining one-half does not accumulate. This policy requires payment in the secondpayroll of the subsequent fiscal year and is accrued at year end.

Fund Equity

In addition to liabilities, the statement of net position and governmental funds balance sheet willsometimes report a separate section for deferred inflows of resources. This separate financial statementelement, deferred inflows of resources, represents an acquisition of net position that applies to futureperiods and so will not be recognized as an inflow of resources (revenue) until that time. Thegovernment has two types of items that qualify for reporting in this category. The governmental fundsreport unavailable revenues, which arises only under a modified accrual basis of accounting. Theseamounts are deferred and recognized as an inflow of resources in the period that the amounts becomeavailable. In addition, deferred inflows of resources are reported in the government-wide andgovernmental fund financial statements for property taxes levied during the year that were intended tofinance future periods.

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3. EXCESS OF EXPENDITURES OVER APPROPRIATIONS

Final Budget Actual Excess

$ 2,584,797 $ 2,587,439 $ 2,642 58,671 59,358 687

1,445,588 1,454,147 8,559 762,500 766,620 4,120 3,975,526 3,977,720 2,194 5,294,271 5,371,174 76,903

287,185 288,633 1,448 17,000 100,000 83,000

188,740 203,971 15,231

The appropriated budget is prepared by fund, function, and department. The Board of Commissionersholds a public hearing and a final budget is adopted prior to December 31 and presented in a separatedocument. The County's department heads may make transfers of appropriations within a department,with the exception of a personnel services object. Transfers of appropriations between a personnel andnon-personnel services object require prior approval of the Board of Commissioners. Transfers ofappropriations between departments also require the approval of the Board. The level of budgetarycontrol is the department level for the general fund and fund level for special revenue funds. The FinanceOfficer is authorized to transfer budget amounts, with the exception of personnel services, and to makeauthorized amendments to the original approved budget.

The Board of Commissioners made several supplemental budgetary appropriations throughout the year,including a net increase of $1,428,127 in the general fund budget and net increases of $2,554,860 in thespecial revenue funds. The general fund and special revenue fund net increases were due primarily toadditional grant activity. The general fund increase includes over $800,000 in additional capital outlay.

Encumbrance accounting, under which purchase orders, contracts and other commitments for theexpenditure of funds are recorded in order to reserve that portion of the applicable appropriation, isemployed as an extension of formal budgetary integration in the governmental funds. Encumbrances arerecorded at the time that the purchase orders and contracts are issued. The encumbrances are liquidatedwhen the goods or services are received. Encumbrances outstanding at December 31, 2012 do not lapsebut are assigned within the fund balance and brought forward to the new fiscal year.

State statutes provide that a local unit shall not incur expenditures in excess of the amountsappropriated. The approved budgets of the County were adopted on a department level basis for thegeneral fund and the fund level for the special revenue funds.

PlanningCDBG grant - 2005-EDC-MBT

Historical commission museum nonmajor special revenue fund - recreation and culture

These excesses over appropriations were funded by available fund balance.

Excess of expenditures or transfers out over appropriations in individual funds are as follows:

General fund:General government:

Road patrolCorrections - jail

Community and economic development:

District courtI.C.E. Operations

Public safety:Sheriff - administrator and road patrolDetectives bureau

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4. DEPOSITS, INVESTMENTS AND SECURITIES LENDING

Following is a reconciliation of deposits and investments as of December 31, 2012:

Primary Government

Component Units Total

Statement of Net PositionCash and cash equivalents 6,310,529$ 16,242,878$ 22,553,407$ Investments 33,946,372 3,640,566 37,586,938 Restricted assets - cash and cash equivalents 1,495,331 12,694,206 14,189,537

Statement of Fiduciary Net PositionCash and cash equivalents 2,890,321 - 2,890,321 Investments 206,958,941 - 206,958,941

Total 251,601,494$ 32,577,650$ 284,179,144$

Deposits and InvestmentsBank deposits (checking and savings accounts, and certificates of deposit) 50,584,205$ Investments in securities, mutual funds and similar vehicles:

Treasurer's investment pool 26,435,655 Employee's retirement system 174,956,699 Retiree health insurance fund 32,135,211

Cash on hand 67,374 Total $ 284,179,144

Bank Deposits and Treasurer’s Investment Pool

$ 22,428,545 4,007,110

$ 26,435,655

Custodial Credit Risk - Deposits. Deposits are exposed to custodial credit risk if they are not covered bydepository insurance. As of December 31, 2012, $43,533,559 of the County’s total bank balance of$53,858,285 (total book balance was $50,584,205) was exposed to custodial credit risk as it was uninsuredand uncollateralized; this was after $8,465,114 of collateralized deposits.

Due to the dollar amounts of cash deposits and the limits of FDIC insurance, the County believes it isimpractical to insure all bank deposits. As a result, the County’s depository policy is to evaluate eachfinancial institution and assesses the level of risk of each institution; only those institutions with anacceptable estimated risk level are used as depositories.

Custodial Credit Risk - Investments. Following is a summary of the Treasurer’s investment pool as ofDecember 31, 2012:

Investments are exposed to custodial credit risk if the securities are uninsured, unregistered or held by acounterparty or its agent but not in the government’s name. In accordance with the County’s investmentpolicy, all investments are held in the name of the County and are evidenced by a safekeeping receiptconfirmation, and thus not exposed to custodial credit risk.

Money market accountsCommercial paper

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Employees Retirement System Investments

Investments at fair value, as determined by quoted market price:

U.S. treasuries 20,418,854$ U.S. agencies 10,077,247 Foreign government bonds 16,012,552 Corporate bonds:

Not on securities loan 31,378,158 On securities loan 236,343

Municipal Bonds 548,237 Bond mutual fund 2,014,519 Domestic equities:

Not on securities loan 33,275,564 On securities loan 5,415,025

International equities 8,954,123 American depository receipts 33,165,943 Domestic real estate investment trusts 2,276,216 Collateralized mortgage obligations (CMO) 2,502,772 Money market accounts 8,681,146

Total investments 174,956,699$

The Michigan Public Employees Retirement Systems’ Investment Act, Public Act 314 of 1965, as amended,authorizes the System to invest in domestic and foreign stocks, government securities, corporatesecurities, mortgages, real estate and various other investment instruments, subject to certainlimitations.

As of December 31, 2012, all of the Treasurer’s investment pool in commercial paper was rated P-1 byMoody's.

Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitudeof a government’s investment in a single issuer. The County’s investment policy requires diversificationby security type and institution, but does not place a fixed percentage limit for any one issuer. AtDecember 31, 2012, the County’s investment portfolio was not exposed to concentration credit risk.

Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affectthe fair value of investments. The County’s investment policy does not limit investment maturities as ameans of managing its exposure to fair value losses arising from increasing interest rates. The County’sinvestments in commercial paper mature in less than six months from December 31, 2012.

The System’s investments are primarily held in a bank‑administered trust fund. Following is a summary ofthose investments as of December 31, 2012:

Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill itsobligations. The County’s investment policy and State law require that commercial paper be rated in thetop two ratings by at least two nationally recognized statistical rating organizations. Ratings are notrequired for money market or mutual funds.

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Foreign Collateralizedgovernment Corporate Municipal mortgage

Rating U.S agencies bonds bonds bonds obligations

Aaa 10,077,247$ 6,199,411$ -$ -$ 2,228,778$ Aa3 - - 712,456 - - A1 - - 4,222,729 - - A2 - 1,773,452 5,661,570 548,237 - A3 - 1,094,890 5,003,605 - - Baa1 - 4,789,086 5,354,110 - - Baa2 - 1,749,884 9,578,115 - - Baa3 - - 1,081,916 - - Ba1 - 405,829 - - - Not rated - - - - 273,994

10,077,247$ 16,012,552$ 31,614,501$ 548,237$ 2,502,772$

Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill itsobligations. The System’s investment policy emphasizes appropriate risk/return parameters andcompliance with Public Act 314, and gives discretionary authority to its investment managers as opposedto establishing specific credit rating benchmarks.

As of December 31, 2012, the System’s investments in debt securities were rated by Moody's as follows:

United States treasury securities are explicitly guaranteed by the U.S. government and not considered tohave credit risk. The System’s investments in bond mutual and money market funds are not rated.

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Investment Maturities (fair value by years)

Fair Value Less Than 1 1-5 6-10 More Than 10

20,418,854$ $ - 8,313,920$ 9,068,208$ $3,036,726U.S. agencies 10,077,247 - 9,228,812 606,306 242,129 Foreign governments 16,012,552 - 5,030,165 3,920,625 7,061,762 Corporate bonds 31,614,501 - 16,253,827 12,486,847 2,873,827 Municipal bonds 548,237 - - - 548,237 CMO 2,502,772 - - - 2,502,772

81,174,163$ -$ 38,826,724$ 26,081,986$ 16,265,453$

CMO - collateralized mortgage obligations

Custodial Credit Risk . For investments, custodial credit risk is the risk that, in the event of the failure ofthe counterparty to a transaction, the System will not be able to recover the value of its investments orcollateral securities that are in the possession of an outside party. The System’s investment policyrequires that securities be held in trust by a third-party institution in the System’s name or its nomineecustodian’s name or in bearer form. Although uninsured and unregistered, the System’s investments arenot exposed to custodial credit risk since the securities are held by the counterparty’s trust departmentor agent in the System’s name. Short-term investments in money market funds and open-end mutualfunds are not exposed to custodial credit risk because their existence is not evidenced by securities thatexist in physical or book form.

Concentration of Credit Risk . Concentration of credit risk is the risk of loss attributed to the magnitudeof the System’s investment in a single issuer. The System’s investment policy requires that no managerwill hold more than 5% of its portion of the total fund in any single company and no more than 5% may beheld in any single common stock. At December 31, 2012 the System’s investment portfolio was notconcentrated.

Interest Rate Risk . Interest rate risk is the risk that changes in interest rates will adversely affect the fairvalue of an investment. The System’s investment policy does not discuss the maximum maturity for anysingle fixed income security or the weighted average portfolio maturity.

As of December 31, 2012, maturities of the System’s debt securities were as follows:

U.S. treasuries

None of the above corporate bonds are callable.

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Investment/Country Currency

Foreign government bondsAustralia Australian dollar 2,511,293$ Brazil Brazilian real 208,500 Germany European euro 749,472 Ireland European euro 405,829 Italy European euro 1,541,384 Malaysia Malaysian ringgit 1,094,890 Mexico Mexican peso 3,794,249 New Zealand New Zealand dollar 998,942 Poland Polish zloty 1,773,452 South Africa South African rand 994,837 United Kingdom British pound 1,939,704

16,012,552

International equitiesBermuda Bermudian dollar 944,506 Brazil Brazilian real 488,089 Canada Canadian dollar 2,735,103 Cayman Islands Cayman Islands dollar 587,963 China Chinese renminbi 210,222 France European euro 115,151 Germany European euro 517,876 India Indian rupee 196,636 Ireland European euro 202,090 Israel Israeli new shekel 128,390 Luxembourg European euro 152,069 Netherlands European euro 358,673 Panama Panamanian balboa 287,709 Singapore Singapore dollar 344,378 Switzerland Swiss franc 618,960 Taiwan Taiwan dollar 135,087 United Kingdom British pound 931,221

8,954,123

Total $ 24,966,675

Foreign Currency Risk . Foreign currency risk is the risk that significant fluctuations in exchange rates mayadversely affect the fair value of an investment. The System has no policies relating to foreign currencyrisk. The System’s exposure to foreign currency risk is summarized as follows:

In addition, as part of a foreign currency overlay plan in conjunction with the foreign government bonds,the System has entered into certain forward contracts (derivatives) to reduce overall portfolio volatilitycaused by foreign currency risk.

Fair Value (in U.S. Dollars)

75



Investment/CurrencyCurrent

Maturity Date

Receivable (Payable) (in U.S. Dollars)

Australian dollar payable 02/11/13 (3,031,137)$ British pounds receivable 03/12/13 1,563,374 Brazilian real receivable 03/05/13 636,591 Chilean peso receivable 02/12/13 630,474 Chilean peso receivable 05/15/13 222,132 European euros payable 02/05/13 (377,183) New Zealand dollars payable 03/13/13 (937,814) South Korea won receivable 02/12/13 1,219,828 United States dollars payable 02/12/13 (1,169,614) United States dollars payable 02/12/13 (628,347) United States dollars payable 05/15/13 (218,387) United States dollars payable 03/05/13 (617,191) United States dollars payable 03/05/13 (1,547,858) United States dollars receivable 02/11/13 2,962,625 United States dollars receivable 02/05/13 371,157 United States dollars receivable 03/13/13 951,617

30,267$

Following is a summary of these forward contracts, for which a receivable in the amount of $30,267 as ofDecember 31, 2012, representing the fair value of those contracts, has been reported in theaccompanying statement of plan net position:

At year-end, the System has no credit risk exposure to borrowers because the amounts the System owesthe borrowers exceed the amounts the borrowers owe the System. The contract with the custodial bankrequires it to indemnify the System if the borrowers fail to return the securities (and if the collateral isinadequate to replace the securities lent) or fail to pay the System for income distributions by thesecurities’ issuers while the securities are on loan.

Also at year-end, through a cash collateral investing program provided by the custodial bank, the Systemhas an obligation to repay $347,334 of cash collateral that was invested in a Sigma Finance Medium TermNote which is impaired. Any current or future recoveries from Sigma Finance are not expected.

Net contracts receivable

Securities Lending . A contract approved by the System’s Board of Directors permits the System to lendits securities to broker-dealers and other entities (borrowers) for collateral that will be returned for thesame securities in the future. The System’s custodial bank manages the securities lending program andreceives securities or irrevocable bank letters of credit as collateral. The collateral securities cannot bepledged or sold by the System unless the borrower defaults. Collateral securities and letters of credit areinitially pledged at 102 percent of the market value of the securities lent, and may not fall below 100percent during the term of the loan. There are no restrictions on the amount of securities that can beloaned.

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Following is a summary of the RHIF’s investments as of December 31, 2012:

Investments at fair value, as determined by the quoted market price:

U.S treasuries 1,790,889$ U.S agencies 1,551,494 Corporate bonds 4,504,935 Foreign bonds 85,500 Bond mutual funds 5,251,567 Domestic equities 11,120,584 International equities 4,884,059 International preferred stock 71,982 Money market accounts 1,989,897

Total investments 31,250,907$

Corporate Foreign Rating U.S Agencies Bonds Bonds

Aaa 1,551,494$ 31,048$ -$ Aa3 - 110,012 - A1 - 485,410 - A2 - 808,773 - A3 - 782,324 - Baa1 - 891,776 - Baa2 - 1,300,376 85,500 Baa3 - 95,216 -

$ 1,551,494 $ 4,504,935 $ 85,500

The Retiree Health Insurance Fund (RHIF) investments are similarly governed by Public Act 314 of 1965and follow the investment policies of the Employees’ Retirement System, although the RHIF isindependent of the System. The RHIF’s investments are held by an independent investment managementcompany.

Credit Risk . Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill itsobligations. The RHIF’s investment policy emphasizes appropriate risk/return parameters and compliancewith Public Act 314, and gives discretionary authority to its investment managers as opposed toestablishing specific credit rating benchmarks. As of December 31, 2012, the RHIF’s investments in debtsecurities were rated by Moody’s as follows:

United States treasury securities are explicitly guaranteed by the U.S. government and not considered tohave credit risk. The RHIF’s investments in bond mutual and money market funds are not rated.

Retiree Health Insurance Fund Investments

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Investment Maturities (fair value by years)

Fair Value Less Than 1 1-5 6-10 More Than 10

1,790,889$ -$ 516,617$ 1,274,272$ -$ 1,551,494 241,911 1,044,070 - 265,513 4,504,935 235,810 3,081,421 1,156,656 31,048

85,500 - - 85,500 -

7,932,818$ 477,721$ 4,642,108$ 2,516,428$ 296,561$

Custodial Credit Risk . For investments, custodial credit risk is the risk that, in the event of the failure ofthe counterparty to a transaction, the RHIF will not be able to recover the value of its investments orcollateral securities that are in the possession of an outside party. The RHIF’s investment policy requiresthat securities be held in trust by a third-party institution in the RHIF’s name or its nominee custodian’sname or in bearer form. Although uninsured and unregistered, the RHIF’s investments are not exposed tocustodial credit risk since the securities are held by the counterparty’s trust department or agent in theRHIF’s name. Short-term investments in money market funds and open-end mutual funds are not exposedto custodial credit risk because their existence is not evidenced by securities that exist in physical orbook form.

As of December 31, 2012, maturities of the RHIF’s debt securities were as follows:

Concentration of Credit Risk . Concentration of credit risk is the risk of loss attributed to the magnitudeof the RHIF’s investment in a single issuer. The RHIF’s investment policy requires that no manager willhold more than 5% of its portion of the total fund in any single company and no more than 5% may be heldin any single common stock. At December 31, 2012 the RHIF’s investment portfolio was not concentrated.

Interest Rate Risk . Interest rate risk is the risk that changes in interest rates will adversely affect the fairvalue of an investment. The RHIF’s investment policy does not discuss the maximum maturity for anysingle fixed income security or the weighted average portfolio maturity.

U.S treasuriesU.S agenciesCorporate bondsForeign bonds

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Investment/Country Currency

Foreign bondsBrazil Brazilian real $ 85,500

International equitiesArgentina Argentine peso 60,440 Belgium European euro 29,457 Bermuda Bermuda dollar 80,618 Brazil Brazilian real 298,895 Canada Canadian dollar 219,634 China Chinese yuan 326,917 Denmark Danish krone 66,463 Egypt Egyptian pound 64,174 France European euro 166,453 Germany European euro 258,749 Hong Kong Hong Kong dollar 305,235 India Indian rupee 27,140 Indonesia Indonesian rupiah 166,473 Ireland European euro 23,743 Isreal Israeli new shekel 77,905 Japan Japanese yen 251,122 Luxembourg European euro 34,581 Mexico Mexican peso 187,840 Netherlands European euro 144,647 Norway Norwegian krone 25,916 Panama Panamanian balboa 29,736 Philippines Philippine peso 57,571 Russia Russian ruble 273,027 Singapore Singapore dollar 68,746 South Africa South African rand 389,247 South Korea South Korean Won 126,521 Sweden Swedish krona 97,831 Switzerland Swiss franc 155,531 Taiwan Taiwan dollar 141,963 Thailand Thai baht 24,409 Turkey Turkish lira 158,892 United Kingdom British pound 544,183

4,884,059 International preferred stock

Brazil Brazilian real 71,982

Total 5,041,541$

Foreign Currency Risk . Foreign currency risk is the risk that significant fluctuations in exchange rates mayadversely affect the fair value of an investment. The RHIF has no policies relating to foreign currencyrisk. The RHIF’s exposure to foreign currency risk is summarized as follows:

Fair Value (in U.S. Dollars)

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5. RECEIVABLES

Receivables in the governmental activities are as follows:

Accounts 231,965$ Current taxes 5,116,183 Other agencies and governments 2,909,472

Total 8,257,620$

6. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

Receivable PayableDue to and from primary government funds

General fund 2,026,525$ 10,920,892$ County health fund 3,099,068 - Federal prisoner housing 415,000 - Senior citizen - - Nonmajor governmental funds 4,327,000 210,797 Delinquent tax revolving fund 1,190,000 1,045,728 Internal service funds 1,119,824 -

Total 12,177,417$ 12,177,417$

Advances to and from other fundsGeneral fund 174,348$ -$ Nonmajor governmental funds - 150,000 Internal service funds - 24,348

Total 174,348$ 174,348$

Advances to and from primary government and component unitsPrimary government - general fund 600,000$ -$ Component unit - Drain Commission - 600,000

Total 600,000$ 600,000$

The composition of interfund balances as of December 31, 2012, is as follows:

The County reports interfund balances between certain of its funds. These interfund balances which areshort-term in nature result primarily from the timing differences between the dates that (1) interfundgoods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in theaccounting system, and (3) payments between funds are made. Interfund advances are provided forworking capital, and are long-term in nature.

Receivables for the business-type activities are composed primarily of amounts due from taxpayers fordelinquent taxes and related interest and collections fees, along with loans receivable for housingrehabilitation programs.

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A summary of interfund transfers for the year ended December 31, 2012 is as follows:

Transfers In

General CH FPH NMGF NMEF Total

Transfers OutGeneral $ - $ 1,029,501 $ 1,157,830 $ 3,930,769 $ 650 $ 6,118,750 CH 20,932 - - - - 20,932 RSR 3,043,714 - - - - 3,043,714 SC 247,476 - - - - 247,476 NMGF - - - 9,892 - 9,892

$ 3,312,122 $ 1,029,501 $ 1,157,830 $ 3,940,661 $ 650 $ 9,440,764

CH - county health special revenue fundRSR - revenue sharing reserve special revenue fundSC - senior citizen special revenue fundNMGF - nonmajor governmental funds

Transfers are used to: (1) move unrestricted revenues collected in the general fund to finance variousprograms accounted for in other funds in accordance with budgetary authorizations; (2) move revenuesfrom the fund that is required to collect them to the fund that is required or allowed to expend them;and (3) move receipts restricted to or allowed for debt service from the funds collecting the receipts tothe debt service funds as debt service payments become due.

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7. CAPITAL ASSETS

Beginning EndingBalance Increases Decreases Balance

Governmental activitiesCapital assets not being depreciated:

Land 105,000$ -$ -$ 105,000$ Collections 113,500 - - 113,500

Total capital assetsnot being depreciated 218,500 - - 218,500

Capital assets being depreciated:Land improvement 855,938 - - 855,938 Buildings and improvements 63,427,314 330,434 215,234 63,542,514 Machinery and equipment 17,278,900 683,256 399,752 17,562,404 Vehicles 2,652,068 129,371 141,569 2,639,870

Total capital assetsbeing depreciated 84,214,220 1,143,061 756,555 84,600,726

Less accumulated depreciation for:Land improvement 715,557 17,795 - 733,352 Buildings and improvements 38,687,231 1,827,853 72,967 40,442,117 Machinery and equipment 8,744,615 1,505,006 399,752 9,849,869 Vehicles 2,256,641 226,164 141,569 2,341,236

Total accumulated depreciation 50,404,044 3,576,818 614,288 53,366,574

Total capital assetsbeing depreciated, net 33,810,176 (2,433,757) 142,267 31,234,152

Governmental activities capital assets, net 34,028,676$ (2,433,757)$ 142,267$ 31,452,652$

Capital asset activity of the primary government for the year ended December 31, 2012 was as follows:

Primary government

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Business-type activitiesCapital assets being depreciated:

Machinery and equipment 313,437$ -$ -$ 313,437$ Vehicles 19,398 - - 19,398

Total capital assetsbeing depreciated 332,835 - - 332,835

Less accumulated depreciation for:Machinery and equipment 313,437 - - 313,437 Vehicles 18,045 1,353 - 19,398

Total accumulated depreciation 331,482 1,353 - 332,835

Business-type activities capital assets, net 1,353$ (1,353)$ -$ -$

Depreciation expense was charged to functions or programs of the primary government as follows:

Governmental activities: General government 1,034,224$ Public safety 1,884,736 Health and welfare 332,892 Recreation and culture 267,941 Capital assets held by the government’s internal service funds are charged to the various functions based on their usage of the assets 57,025

Total depreciation expense - governmental activities 3,576,818$

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Capital asset activity for the discretely presented component units for fiscal 2012 was as follows:


Component Unit - Road CommissionCapital assets not being depreciated:

Land 437,983$ -$ -$ 437,983$ Land improvements - infrastructure 16,518,350 596,443 - 17,114,793 Construction in progress - 2,088,037 - 2,088,037

Total capital assetsnot being depreciated 16,956,333 2,684,480 - 19,640,813

Capital assets being depreciated:Buildings and improvements 4,438,919 741,485 865,176 4,315,228 Equipment and storage 13,033,168 1,447,371 1,512,517 12,968,022 Infrastructure 195,784,685 6,707,919 - 202,492,604

Total capital assetsbeing depreciated 213,256,772 8,896,775 2,377,693 219,775,854

Less accumulated depreciation for:Buildings and improvements 2,829,108 167,721 - 2,996,829 Equipment and storage 9,769,411 587,878 288,070 10,069,219 Infrastructure 116,159,701 7,914,253 - 124,073,954

Total accumulated depreciation 128,758,220 8,669,852 288,070 137,140,002

Total capital assetsbeing depreciated, net 84,498,552 226,923 2,089,623 82,635,852

Road Commission capital assets, net 101,454,885$ 2,911,403$ 2,089,623$ 102,276,665$


84




Component Unit - Mental Health AuthorityCapital assets not being depreciated -

Land 54,000$ -$ -$ 54,000$

Capital assets being depreciated:Buildings and improvements 836,086 - - 836,086 Equipment and furnishings 1,417,329 - - 1,417,329 Vehicular equipment 485,206 - - 485,206

Total capital assetsbeing depreciated 2,738,621 - - 2,738,621

Less accumulated depreciation for:Buildings and improvements 353,674 43,050 - 396,724 Equipment and furnishings 1,267,697 58,302 - 1,325,999 Vehicular equipment 434,698 34,392 - 469,090

Total accumulated depreciation 2,056,069 135,744 - 2,191,813

Total capital assetsbeing depreciated, net 682,552 (135,744) - 546,808

Community Mental Healthcapital assets, net 736,552$ (135,744)$ -$ 600,808$

Component Unit - Monroe County Library SystemCapital assets being depreciated:

Library collection 7,379,925$ 557,624$ 629,639$ 7,307,910$ Buildings and improvements 2,616,952 - - 2,616,952 Equipment and furnishings 1,425,770 58,161 - 1,483,931 Vehicular equipment 124,790 - - 124,790

Total capital assetsbeing depreciated 11,547,437 615,785 629,639 11,533,583

Less accumulated depreciation for:Buildings and improvements 175,549 93,555 - 269,104 Equipment and furnishings 927,352 163,367 - 1,090,719 Vehicular equipment 124,147 286 - 124,433

Total capital accumulated depreciation 1,227,048 257,208 - 1,484,256

Monroe County Library Systemcapital assets, net 10,320,389$ 358,577$ 629,639$ 10,049,327$

85




Component Unit - Drain CommissionLand improvements - infrastructure:

Capital assets being depreciated 33,929,991$ -$ -$ 33,929,991$ Less accumulated depreciation 11,836,635 496,236 - 12,332,871

Drain commission capital assets, net 22,093,356$ (496,236)$ -$ 21,597,120$

Component Unit - Monroe County AgencyCapital assets not being depreciated -

Land and rights of way 345,574$ -$ -$ 345,574$

Capital assets being depreciated:Utility plant in service 33,625,405 338,754 - 33,964,159 Buildings and improvements 725,127 - - 725,127 Equipment and furnishings 575,029 - 29,685 545,344 Vehicles 874,565 154,606 111,661 917,510

Total capital assetsbeing depreciated 35,800,126 493,360 141,346 36,152,140

Less accumulated depreciation for:Utility plant in service 11,222,898 566,546 - 11,789,444 Buildings and improvements 535,949 19,969 - 555,918 Equipment and furnishings 542,934 19,916 - 562,850 Vehicles 794,361 48,647 141,346 701,662

Total accumulated depreciation 13,096,142 655,078 141,346 13,609,874

Total capital assetsbeing depreciated, net 22,703,984 (161,718) - 22,542,266

Monroe County Agencycapital assets, net 23,049,558$ (161,718)$ -$ 22,887,840$

86



8. LONG-TERM DEBT

Beginning Ending Due WithinBalance Increases Decreases Balance One Year

Governmental activitiesGeneral obligation bonds:

Building Authority, Series 2007 7,450,000$ -$ 325,000$ 7,125,000$ 340,000$

Building Authority,2010 Refunding 3,630,000 - 465,000 3,165,000 485,000

Capital Improvement Series 2012 - 1,060,000 - 1,060,000 87,000

Deferred amounts for:Issuance discounts (61,505) - (3,844) (57,661) - Issuance premiums 13,594 - 1,942 11,652 -

Compensated absences 1,155,372 1,175,006 1,155,372 1,175,006 1,175,006

12,187,461$ 2,235,006$ 1,943,470$ 12,478,997$ 2,087,006$

Business-type activitiesGeneral obligation

tax notes 5,515,000$ 7,400,000$ 9,710,000$ 3,205,000$ -$

Year of Outstanding OriginalInterest Rate Maturity Principal Amount

General obligation bonds2007 Building Authority 4.00-4.25% 2027 7,125,000$ 8,600,000$ 2010 Refunding Building Authority 2.00-3.00% 2018 3,165,000 4,070,000 2012 Capital Improvement 2.07% 2022 1,060,000 1,060,000

Total 11,350,000$ 13,730,000$

Long-term liability activity for governmental activities for the year ended December 31, 2012 was as

For the governmental activities, compensated absences and net pension and other postemploymentbenefits obligations are generally liquidated by the general fund.

General Obligation Bonds. The County issues general obligation bonds to provide funds for theacquisition and construction of major capital facilities. General obligation bonds are direct obligations ofthe County and pledge the County’s full faith and credit. General obligation bonds currently outstandingare as follows:

87



Annual debt service requirements to maturity for general obligation bonds are as follows:

Year Ended December 31, Principal Interest

2013 912,000$ 383,005$ 2014 953,000 354,414 2015 990,000 327,614 2016 1,028,000 298,376 2017 1,070,000 265,904

2018-2022 3,472,000 911,471 2023-2027 2,925,000 321,408

11,350,000$ 2,862,192$


Road Commission

The outstanding debt of the Road Commission as of December 31, 2012, is summarized as follows:

Maturing PrincipalInterest Rate Through Outstanding

2005 Michigan Transportation Fund Bonds, Series 2005 3.50%-3.85% 2017 1,050,000$ 2008 Michigan Transportation Fund Notes, Series 2008 3.00%-4.00% 2017 1,620,000 2011 Michigan Transportation Fund Notes, Series 2011 3.25% 2020 735,000 2012 Michigan Transportation Fund Notes, Series 2012 3.05% 2022 700,000 Installment lease purchase agreements 3.75%-4.50% 2013 472,824

Total bonded and other contractual indebtedness 4,577,824$

General Obligation Tax Notes . The balance of $3,205,000 is due within two years, corresponding withthe actual delinquent property tax collections, plus interest on the quarterly outstanding balance at onemonth BBA LIBOR + .40%.

88




Michigan Transportation Fund:Bonds, Series 1999 240,000$ -$ 240,000$ -$ -$ Notes, Series 2002 350,000 - 350,000 - - Bonds, Series 2005 1,250,000 - 200,000 1,050,000 200,000 Notes, Series 2008 1,785,000 - 165,000 1,620,000 455,000 Notes, Series 2011 815,000 - 80,000 735,000 80,000 Notes, Series 2012 - 700,000 - 700,000 50,000

26,818 - 4,469 22,349 4,469

537,303 56,347 120,826 472,824 445,245

4,442,166 1,996,036 895,548 5,542,654 -

396,921 242,616 41,795 597,742 - Compensated absences 523,263 - 38,924 484,339 33,770

Totals Road Commission 10,366,471$ 2,994,999$ 2,136,562$ 11,224,908$ 1,268,484$

Year Ending December 31, Principal Interest

2013 1,230,245$ 134,064$ 2014 649,257 93,256 2015 658,322 72,819 2016 655,000 50,875 2017 710,000 46,244

2018-2022 675,000 47,469

Total 4,577,824$ 444,727$

The installment lease purchase agreements consist of multi-equipment obligations, including two Cat loaders,two Cat graders and a vactor truck, as well as a new software agreement entered into during 2012.

Following is a summary of long-term debt transactions of the Road Commission for the year ended December31, 2012:

benefits obligationProvision for workers

compensation losses

Annual debt service requirements to maturity for the bonds, notes and lease purchase agreements are asfollows (excluding the unamortized premium):

Premium on notesInstallment lease purchase

agreementsOther postemployment

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Community Mental Health Authority

Following is a summary of the changes in the long-term debt of the Community Mental Health Authority:


Compensated absences 229,885$ 3,730$ -$ 233,615$ 35,042$

Year Ending September 30, Amount

2013 203,880$ 2014 92,226

296,106$

Library System

Following is a summary of the changes in the long-term liabilities of the Library System:


Compensated absences 243,189$ 199,883$ 191,192$ 251,880$ 219,060$

Operating Leases. The Authority has entered into various operating leases for the use of real andpersonal property. Operating leases do not give rise to property rights or lease obligations and, therefore,the lease agreements are not reflected in the government-wide financial statements or the fund financialstatements. At September 30, 2012, the Authority was committed, subject to cancellation provisions, forrental payments under operating leases as follows:

90



Drain Commission


510,000$ -$ 90,000$ 420,000$ 95,000$

330,000 - 15,000 315,000 15,000

520,000 - 40,000 480,000 45,000

1,355,000 - 50,000 1,305,000 50,000

Drain bonds and notes are issued for the construction and maintenance of County drains. Bonds and notesissued by the Drain Commission are generally collateralized by the full faith and credit of the drainagedistricts and the County of Monroe.

Long-term liability activity for the Drain Commission for the year ended December 31, 2012 was asfollows:

1996 Drainage DistrictBonds (limited tax generalobligation bonds; originalissuance $1,340,000);annual installments of$70,000-$115,000 through2019; interest at 5.85% to6.00%

2009 Drainage DistrictBonds (limited tax generalobligation bonds; originalissuance $350,000); annualinstallments of $5,000-$20,000 through 2029;interest at 4.25% to 5.25%

2010 Drainage DistrictBonds (limited tax generalobligation bonds; originalissuance $520,000); annualinstallments of $40,000-$65,000 through 2021;interest at 3.50 to 4.20%


91




1,765,000$ -$ -$ 1,765,000$ 75,000$

1,850,000 - - 1,850,000 75,000

2,630,583 440,383 755,997 2,314,969 853,100

8,960,583$ 440,383$ 950,997$ 8,449,969$ 1,208,100$

Annual debt service requirements to maturity for drain bonds and notes are as follows:


2013 1,208,099$ 316,523$ 2014 960,433 279,011 2015 746,676 249,356 2016 630,946 224,053 2017 498,715 203,328

2018-2022 1,865,100 762,759 2023-2027 1,475,000 417,988 2028-2031 1,065,000 93,807

Total 8,449,969$ 2,546,825$

payable


Drainage district notes


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County Agency


General obligation bonds 60,023,527$ 15,876,018$ 9,420,000$ 66,479,545$ 4,121,767$ Unamortized issuance

discounts (29,550) - (2,150) (27,400) - Compensated absences 66,211 67,509 66,211 67,509 67,509

60,060,188$ 15,943,527$ 9,484,061$ 66,519,654$ 4,189,276$


2013 4,121,767$ 1,857,199$ 2014 4,215,000 1,765,991 2015 4,730,000 1,643,555 2016 4,845,000 1,517,759 2017 4,930,000 1,386,879

2018-2022 20,104,664 5,144,082 2023-2027 15,545,000 2,430,968 2028-2032 7,483,114 521,794 2033-2037 505,000 24,741

Total 66,479,545$ 16,292,968$

The County has issued general obligation bonds for various waterworks and sewage disposal systems underAct 342, P.A. 1939, as amended. These bonds are supported by a pledge of the County's full faith andcredit as well as by the various local units which make payments through contractual agreements with theCounty to meet the principal and interest of these bonds; title passes to the local unit when the debt isretired.

The following is a summary of changes in long-term debt of the County Agency for the year endedDecember 31, 2012:

The annual requirements to pay principal and interest on the general obligation bonds outstanding atDecember 31, 2012, are as follows:

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9. PENSION PLAN

Plan Description

The Monroe County Employees Retirement System’s financial statements are prepared using the accrualbasis of accounting. Plan contributions are recognized in the period in which the contributions are due.Employer contributions to the plan are recognized when due and the employer has made a formalcommitment to provide the contribution. Benefits and refunds are recognized when due and payable inaccordance with the terms of the plan.

Method Used to Value Investments

Plan investments are reported at fair value. Securities traded on a national or international exchange arevalued at the last reported sales price. Investments for which market quotations are not readily availableare valued at their fair values as determined by the portfolio manager under the direction of the Board.

The Monroe County Employees Retirement Plan (the Plan) is a single-employer defined benefit pensionplan administered by the Monroe County Employees Retirement System Board of Trustees (the Board).The Plan covers substantially all full-time employees of the County and discretely presented componentunits. The Plan was adopted and established by Monroe County in accordance with Michigan CompiledLaws, Section 46.12a.

The Plan provides retirement, deferred allowance, disability and death benefits to plan members andtheir beneficiaries in accordance with the County’s retirement plan ordinance. The Plan also providesretiree health care benefits to the employees of the Monroe County Library. All other covered employeesreceive retiree health care benefits through a separate plan (see Note 10). Benefit provisions areestablished and may be amended by the Board.

The Monroe County Employees Retirement System’s financial statements are included in the financialstatements of Monroe County as a pension trust fund. A separate, publicly available financial report thatincludes financial statements and required supplementary information is also issued; it may be obtainedby writing to the Monroe County Employees Retirement System, 125 East Second Street, Monroe, MI48161.

Basis of Accounting

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Employer contributions:General County:

Central Dispatch 192,853$ 20.48%Sheriff 2,153,886 24.11%Other 2,556,122 22.23%

Road Commission 842,879 18.35%County Agency 415,032 29.33%County Library 384,203 11.23%Community Mental Health 639,128 10.42%

7,184,103$

The funding requirements for the Monroe County Employees Retirement Plan are established and may beamended by the Monroe County Employees Retirement System Board of Trustees.

Funding Policy

Plan employers (General County, Monroe County Library, Monroe County Road Commission, Monroe CountyDrain Commission, County Agency, and Monroe County Community Mental Health Authority) are requiredto make periodic contributions that are expressed as percentages of their annual covered payrolls. Thesecontributions are determined as part of an actuarial valuation, using the entry age normal cost method,and are designed to accumulate sufficient assets to pay benefits when due. Normal cost is funded on acurrent basis. Unfunded and overfunded actuarial accrued liabilities are being amortized as a levelpercent of payroll on an open basis over periods ranging from 7 to 20 years, depending on plan employer.Significant actuarial assumptions used include (a) a 7.0 percent investment rate of return, (b) projectedsalary increases ranging from 5.0 percent to 12.0 percent per year, and (c) no cost of living adjustmentsother than 4.5 percent for certain Road Commission members. Both (a) and (b) include an inflationcomponent of 4.0 percent. The actuarial value of assets was determined using techniques that smooththe effects of short-term volatility over five years.

Central Dispatch supervisors are required to contribute 3.0% of the first $7,800 in earnings and 5.0% ofearnings thereafter to the System. Sheriff Command officers are required to contribute 1.53% of theirannual earnings. Technical, Professional and Officeworkers union members hired after October 26, 2010are required to contribute 3.0% of their annual earnings. Road Commission employees are required tocontribute 3.1% of their annual earnings. All other County employees, along with employees of the LibrarySystem, Drain Commissioner, County Agency and Community Mental Health Authority, are not required tocontribute.

Annual Pension Cost

For the year ended December 31, 2012, contributions, with the rate of annual covered payroll by class ofemployee, were made as follows (based on an actuarial valuation as of December 31, 2010):

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Employee contributions:General County:

Central Dispatch 17,256$ Sheriff 16,846 Other 180,134

Road Commission 136,238

350,474$

The County’s annual pension cost and net pension obligation for the current year are as follows:

Annual required contribution/pension cost 7,184,103$ Contributions made 7,184,103 Increase (decrease) in net pension obligation - Net pension obligation, beginning of year -

Net pension obligation, end of year -$

Three-Year Trend Information

Year EndedAnnual Pension

Cost (APC)Percentage of

APC Net Pension Obligation

12/31/10 5,938,425$ 100% - 12/31/11 5,994,825 100% - 12/31/12 7,184,103 100% -

Funded Status and Funding Progress

Actuarial accrued liability (AAL) (1) 240,885,825$ Actuarial value of assets (2) 192,013,890

Unfunded AAL (UAAL) (3) 48,871,935$ (1) - (2)

Funded ratio (4) 79.7% (2) / (1)

Covered payroll (5) 38,891,988$

UAAL as % of covered payroll (6) 125.7% (2) / (5)

The annual required contribution for the current year was determined as part of the December 31, 2010,actuarial valuation using the entry age normal cost method and is designed to accumulate sufficientassets to pay benefits when due.

The funded status of the System as of December 31, 2011, the date of the most recent actuarialvaluation, is as follows:

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10. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS

Primary Government (including Drain Commission and County Agency)

The accompanying schedule of employer contributions presents trend information about the amountscontributed to the System by the employer in comparison to the ARC (annual required contribution), anamount that is actuarially determined in accordance with the parameters of GASB Statement 25. TheARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost foreach year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed30 years.

Plan Description . The Monroe County Retiree Health Plan (the Plan) is a single-employer defined benefithealthcare plan administered by the Retiree Health Care Board (the Board). The Plan was adopted andestablished by the Monroe County Board of Commissioners. The Plan provides postemployment healthcareand life insurance benefits to eligible retirees of the primary government, Drain Commission and CountyAgency (collectively referred to as the “County” for purposes of this note), in accordance with the variouslabor contracts and personnel policies. Eligible retirees are those individuals who meet the requirementsto receive retirement benefits pursuant to the Monroe County Employees Retirement System, except foremployees hired on or after October 28, 2003, who receive no benefits under the Plan.

The Plan is reported as an other employee benefit trust fund in the accompanying financial statements.The Plan does not issue a separate or stand-alone report.

Basis of Accounting . The Plan’s financial statements are prepared using the accrual basis of accounting.Plan contributions are recognized in the period in which the contributions are due. Employercontributions are recognized when due and the employer has made a formal commitment to provide thecontribution. Benefits and refunds are recognized when due and payable in accordance with the terms ofthe plan.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts andassumptions about the probability of occurrence of events far into the future. Examples includeassumptions about future employment and mortality. Actuarially determined amounts are subject tocontinual revision as actual results are compared with past expectations and new estimates are madeabout the future. The schedule of funding progress, presented as required supplementary informationfollowing the notes to the financial statements, presents multiyear trend information about whether theactuarial values of trust assets are increasing or decreasing over time relative to the actuarial accruedliabilities for benefits. For purposes of the schedule of funding progress, the actuarial accrued liabilityvalue as shown is determined using the entry age actuarial cost method.

Method Used to Value Investments . Plan investments are reported at fair value. Securities traded on anational or international exchange are valued at the last reported sales price. Investments for whichmarket quotations are not readily available are valued at their fair values as determined by the portfoliomanager under the direction of the Board.

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Retirees and beneficiaries currently receiving benefits 600 Terminated employees entitled to, but not yet receiving benefits - Active participants 363

Annual required contribution 9,087,406$ Interest on net OPEB obligation 592,284 Adjustment to annual required contribution (754,757)

Annual OPEB cost 8,924,933 Contributions made (6,399,838)

Increase in net OPEB obligation 2,525,095 Net OPEB obligation, beginning of year 8,461,205

Net OPEB obligation, end of year 10,986,300$

Annual OPEB Cost and Net OPEB Obligation . For 2012, the components of the County’s annual OPEB(other postemployment benefit) cost for the year, the amount actually contributed to the Plan, andchanges in the County’s net OPEB obligation to the Plan are as follows:

Plan Membership . Plan membership consisted of the following at December 31, 2011 (the date of thelatest actuarial valuation):

Funding Policy . The contribution requirements of plan members and the County are established andmay be amended by the County Board of Commissioners, subject to applicable labor contracts. Activeplan members hired before January 1, 1996 are not required to contribute; those hired between January1, 1996 and December 31, 1998 are required to contribute 1.5% of their covered payroll to the Plan; andthose hired between January 1, 1999 and October 28, 2003 are required to contribute 3.0% of coveredpayroll. Additionally, plan members receiving healthcare benefits contribute on a sliding scale basis forspouse and dependent coverage, ranging from 0% to 50% of the monthly premium, based on years ofservice; plan members receiving benefits are not required to contribute towards their own individualcoverage. Total contributions from active plan members and from plan members receiving benefits were$892,061 or 13.9% of the total cost of benefits for 2012.

The County is required to contribute the annual required contribution of the employer (ARC), an amountactuarially determined in accordance with the parameters of GASB Statement 45, Accounting andFinancial Reporting by Employers for Postemployment Benefits Other Than Pensions. The ARC representsa level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year andamortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. Thecurrent combined ARC is 46.1% of annual covered payroll.

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Year EndedAnnual OPEB

CostActual

Contribution

Percentage Annual OPEB

Cost Contributed

Net OPEB Obligation

12/31/2010 6,927,594$ 2,746,766$ 39.6% 7,488,243$ 12/31/2011 6,687,916 5,714,954 85.5% 8,461,205 12/31/2012 8,924,933 6,399,838 71.7% 10,986,300

Actuarial accrued liabilities (AAL) 106,191,863$ Actuarial value of plan assets 29,756,300

Unfunded actuarial accrued liability (UAAL) $ 76,435,563

Funded ratio 28.0%

Covered payroll (active plan membership) 19,719,996$

UAAL as a percentage of covered payroll 387.6%

The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the netOPEB obligation for the last three years were as follows:

Funded Status and Funding Progress . The funded status of the Plan as of December 31, 2011, the dateof the latest actuarial valuation, was as follows:

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts andassumptions about the probability of occurrence of events far into the future. Examples includeassumptions about future employment, mortality, and the healthcare cost trend. Amounts determinedregarding the funded status of the plan and the annual required contributions of the employer are subjectto continual revision as actual results are compared to past expectations and new estimates are madeabout the future. The schedule of funding progress, presented as required supplementary informationfollowing the notes to the financial statements, presents multiyear trend information that shows whetherthe actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accruedliabilities for benefits.

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Actuarial valuation date 12/31/2011Actuarial cost method Entry ageAmortization method

Remaining amortization period 20 years; closed basisAsset valuation method 5-year smoothing

Actuarial assumptions:Investment rate of return 7.0%Projected salary increases 6.8%Healthcare inflation rate 9.0% initially; 4.0% ultimatelyInflation rate 4.0%

AssetsCash and cash equivalents 884,304$ Investments at fair value:

U.S. treasuries 1,790,889 U.S. agencies 1,551,494 Corporate bonds 4,504,935 Foreign bonds 85,500 Bond mutual fund 5,251,567 Domestic equities 11,120,584 International equities 4,884,059 International preferred stock 71,982 Money market accounts 1,989,897

Accounts receivable 62,483 Total assets 32,197,694

LiabilitiesAccounts payable 21,959

Net position held in trust for otherpostemployment benefits $ 32,175,735

Actuarial Methods and Assumptions . Projections of benefits for financial reporting purposes are basedon the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costsbetween the employer and plan members to that point. The actuarial methods and assumptions usedinclude techniques that are designed to reduce the effects of short-term volatility in actuarial accruedliabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.Significant methods and assumptions were as follows:

Level percent of payroll or level of dollar contributions depending on division; closed

A stand alone financial report has not been issued for the Monroe County Retiree Health Plan;accordingly, those financials are presented below.

Statement of Plan Net Position - December 31, 2012

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AdditionsInvestment income:

Net appreciation in fair value of investments 1,856,163$ Interest and dividends 882,711

Total investment loss 2,738,874 Less: investment management fees (227,420)

Net investment income 2,511,454

Contributions:Employer 6,400,652 Employee 410,664 Retiree and other 481,397

Total contributions 7,292,713

Total additions 9,804,167

DeductionsBenefit payments 4,829,258 Refunds of contributions 90,045 Administrative expenses/premiums paid 31,527

Total deductions 4,950,830

Net additions to net position held in trust 4,853,337

Net position held in trust for otherpostemployment benefits

Beginning of year 27,322,398

End of year 32,175,735$

Road Commission

Statement of Changes in Plan Net PositionYear Ended December 31, 2012

Plan Description . The Road Commission provides retiree health and life insurance benefits to all full-time employees, in accordance with labor contracts and personnel policy. Currently, 76 retirees and/orsurviving spouses are eligible for health and life insurance benefits. Participants are required tocontribute 3.1 percent of their compensation to the plan. There are currently 85 active memberscontributing to the plan. This is a single employer plan administered by the Road Commission. The plandoes not issue a separate stand-alone financial statement.

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Annual required contribution 2,030,819$ Interest on net OPEB obligation 222,108 Adjustment to annual required contribution (256,891)

Annual OPEB cost 1,996,036 Contributions made 895,548

Increase in net OPEB obligation 1,100,488 Net OPEB obligation, beginning of year 4,442,166

Net OPEB obligation, end of year 5,542,654$


Cost

Percentage Annual OPEB

Cost Contributed

Net OPEB Obligation

12/31/2010 1,888,704$ 44.12% 3,377,421$ 12/31/2011 2,199,690 51.60% 4,442,166 12/31/2012 1,996,036 44.87% 5,542,654

Funding Policy . The Road Commission has no obligation to make contributions in advance of when theinsurance premiums are due for payment (in other words, this may be financed on a “pay-as-you-go”basis). However, as shown below, the Road Commission has made contributions to advance fund thesebenefits. Administrative costs of the plan are paid for by the Road Commission.

Funding progress . For the year ended December 31, 2012, the Road Commission has estimated the costof providing retiree healthcare benefits through an actuarial valuation as of December 31, 2010. Thevaluation computes an annual required contribution, which represents a level of funding that, if paid onan ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarialliabilities over a period not to exceed the 30 years. The computed contribution and actual funding aresummarized as follows:

The annual OPEB cost, the percentage contributed to the plan, and the net OPEB obligation for fiscalyears ended December 31, 2010, 2011 and 2012 were as follows:

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The current funding progress of the plan as of December 31, 2010 is as follows:

Actuarial accrued liabilities (AAL) 32,524,685$ Actuarial value of plan assets 366,474

Unfunded actuarial accrued liability (UAAL) 32,158,211$

Funded ratio 1.1%

Covered payroll (active plan membership) 4,280,204$


Community Mental Health Authority

Actuarial methods and assumptions . Actuarial valuations of an ongoing plan involve estimates of thevalue of reported amounts and assumptions about the probability of occurrence of events far into thefuture. Examples include assumptions about future employment, mortality, and the healthcare costtrend. Amounts determined regarding the funding status of the plan and the annual requiredcontributions of the employer are subject to continual revision as actual results are compared with pastexpectations and new estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan asunderstood by the employer and the plan members) and include the types of benefits provided at thetimes of each valuation and the historical pattern of sharing of benefit costs between the employer andplan members to that point. The actual methods and assumptions used include techniques that aredesigned to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarialvalue of assets, consistent with the long-term perspective of the calculations.

In the December 31, 2010 actuarial valuation, the entry age actuarial cost method was used. Theactuarial assumptions included a 5.0% investment rate of return (net of administrative expenses), which isthe expected long-term investment return on plan assets, and a payroll growth rates of 4.5% to 6.0%.Both rates include a 4.0% inflation assumption. The UAAL is being amortized as a level of percentage ofprojected payroll on an open basis, using a 30 year amortization period.

Plan Description . The Authority’s Retiree Health Plan (the “Plan”) is a single-employer defined benefithealthcare plan administered by the Retiree Health Care Board (the Board). The Plan was established andmay be amended by the Authority Board of Directors, subject to applicable collective bargainingagreements. Eligible retirees are those individuals who meet the requirements to receive retirementbenefits pursuant to the Monroe County Employees Retirement System.

Basis of Accounting . The Plan’s financial statements are prepared using the accrual basis of accounting.Plan contributions are recognized in the period in which the contributions are due. Employercontributions are recognized when due and the employer has made a formal commitment to provide thecontribution. Benefits and refunds are recognized when due and payable in accordance with the terms ofthe plan.

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Cost

Percentage of Annual OPEB

Cost Contributed

Net OPEB Obligation

9/30/2010 385,216$ 100% $ - 9/30/2011 353,573 100% - 9/30/2012 365,304 100% -

5,320,979$ 1,485,294 3,835,685$

Funded ratio 27.9%

Covered payroll (active plan members) 6,329,478


Method Used to Value Investments . Plan investments are reported at fair value. Securities traded onnational or international exchanges are valued at the last reported sales price. Investments that do nothave established market values are reported at estimated fair values as determined by the custodianunder the direction of the Authority Board of Directors with the assistance of a valuation service.

Funding Policy . The contribution requirements of plan members and the Authority are established andmay be amended by the Authority Board of Directors, subject to applicable labor contracts. The Authorityhas no obligation to make contributions in advance of when the insurance premiums or benefits are duefor payment; in other words, the Plan may be financed on a pay-as-you-go basis. Plan members are notrequired to contribute to the plan. For the year ended September 30, 2012, the Authority paid $365,304towards the cost of benefits and/or advance funding the Plan.

Funding Progress . For the year ended September 30, 2012, the Authority estimated the cost of providingretiree healthcare benefits through an actuarial valuation as of June 30, 2009. Such a valuation computesan annual required contribution (ARC) that represents a level of funding that, if paid on an ongoing basis,is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (orfunding excess) over a period not to exceed thirty years. The current ARC is 5.93% of annual coveredpayroll.

Unfunded actuarial accrued liability (UAAL)

Annual OPEB Cost and Net OPEB Obligation . For the year ended September 30, 2012, the Authority'sannual OPEB cost of $365,304 was equal to the Authority's required and actual contribution. TheAuthority's annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the netOPEB obligation for the last three years were as follows:

Funded Status and Funding Progress . The funded status of the Plan as of June 30, 2009, the date of thelatest actuarial valuation, was as follows:

Actuarial accrued liabilities (AAL)Actuarial value of plan assets

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Actuarial Methods and Assumptions. Significant methods and assumptions were as follows:

Valuation date June 30, 2009Actuarial cost method Entry ageAmortization method Level percent of payrollRemaining amortization period 30 years, closed basisAsset valuation method 5-year smoothing

Actuarial assumptionsInvestment rate of return 8.0%Projected salary increases 4.0%Healthcare cost trend rate 6.0% initially; 4.0% ultimatelyInflation rate 4.0%

Library System

Plan Description . The Monroe County Library System contributes to the Retiree Health Care BenefitsPlan and Trust which was adopted on December 17, 2001. The Monroe County Library Retiree Health CareBenefits Plan and Trust (Plan and Trust) was established under the authority of the Public EmployeeHealth Care Fund Investment Act, Public Act 149 of 1999. The assets of the Plan and Trust shall be held intrust for the exclusive purpose of providing healthcare and life insurance benefits to eligible retirees andtheir beneficiaries who are receiving retirement benefits from the Monroe County Employees RetirementSystem. The Plan and Trust is a single-employer defined benefit postemployment healthcare plan, whichis presented as a fiduciary fund type in the Library System’s stand-alone report.

Funding Policy and Annual OPEB Cost . Employees hired before October 21, 2002, are not required tocontribute toward the cost of health insurance premiums. Employees hired after October 21, 2002, willearn 5% toward retiree health care premium coverage for each year of full time service with the Library.Also, an inflation cap was put in place for employees hired after October 21, 2002. Any employee hiredafter October 21, 2002, will be required to pay for health care premium increases in excess of 5% annuallyof the premium in effect at retirement. The required contribution changes each year as a result of theexperience of the Plan and Trust. The Library’s contribution to the Plan and Trust for 2012 was $377,328to fund retiree health benefits as a result of an actuarial valuation as of December 31, 2011. Thecontributions for the previous two fiscal years were $380,030 and $385,470. The contributions for thecurrent and two prior years were equal to the annual other postemployment benefit cost (100% of theannual required contribution); the Library has no net OPEB obligation. The Library drew $320,490 fromthe Plan and Trust to pay the 2012 current year costs of the retiree health benefits.

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6,952,940$ 2,900,897 4,052,043$

Funded ratio 41.7%

Covered payroll (active plan members) 2,297,499


Actuarial Methods and Assumptions. Significant methods and assumptions were as follows:

Valuation dateActuarial cost method Entry ageAmortization method Level percent of payrollRemaining amortization period 20 years, closed basisAsset valuation method Market value

Actuarial assumptionsInvestment rate of return 7.0%Projected salary increases 6.8%Healthcare inflation rate 9.0% initially; 4.0% ultimatelyInflation rate 4.0%

11. RISK MANAGMENT

Funded Status and Funding Progress . The funded status of the Plan and Trust as of December 31, 2011,the date of the latest actuarial valuation, was as follows:

Actuarial accrued liabilities (AAL)Actuarial value of plan assetsUnfunded actuarial accrued liability (UAAL)

December 31, 2011

Monroe County and its component units are exposed to various risks of loss related to torts; theft of,damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.The County has self-insurance plans for workers' compensation, unemployment, dental care, health care,and disability coverage. Each participating fund of the County makes payments to the respective internalservice fund equal to an established percentage of gross salaries for that fund. These payments areaccounted for as other employee benefits in the paying fund and charges for services revenue in thereceiving fund. The County has established liabilities for incurred but not reported claims (IBNR) in theworker’s compensation, health care, dental care, unemployment, and long-term disability funds.Historical data was used as a basis for the development of the IBNR liabilities.

In 2012, there were no significant reductions in insurance coverage from prior year levels by majorcategories of risk. Also, there have been no settlements that exceeded insurance coverage during each ofthe past five fiscal years.

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Current Year Claims and

Beginning of Changes in Claims End of Year Year Liability Estimates Payments Liability

2011 218,543$ 273,738$ 186,502$ 305,779$ 2012 305,779 (7,711) 160,915 137,153

Beginning of Year Liability

Current Year Claims and Changes in Estimates

Claims Payments

End of Year Liability

2011 336,607$ 4,723,238$ 4,383,354$ 676,491$ 2012 676,491 5,079,968 5,337,630 418,829



Claims Payments


2011 10,520$ 335,699$ 335,493$ 10,726$ 2012 10,726 347,801 352,387 6,140

Worker’s compensation self-insurance plan - The County has a self-insurance program for worker’scompensation accounted for in a separate internal service fund. An independent third party administratorprocesses the daily claims and performs internal control and management duties. Currently, the Countyself-insures $550,000 in liability for each occurrence and purchases excess insurance through variousreinsurance companies, for up to $5,000,000 per occurrence. The fund has unrestricted net assets of$956,666 at December 31, 2012. The changes in estimated claims liability are as follows:

Health care self-insurance plan - The County offers health care options through two health maintenanceorganizations (HMOs), a preferred provider organization (PPO), or traditional coverage with Blue CrossBlue Shield. A separate internal service fund is used to account for health care self-insurance planactivities. The revenues for this fund’s operation are charges to various funds and employee payrollwithholdings. The fund has unrestricted net assets of $4,377,426 at December 31, 2012. The changes inthe estimated claims liability are as follows:

Dental care self-insurance plan - The County has a self-insured plan for dental care coverage accountedfor in a separate internal service fund. An independent administrator processes the daily claims andperforms management duties. Benefits under the program are capped at $800 per covered personannually. The revenues for this fund’s operation are charges to various funds and payroll withholdings.The fund has unrestricted net assets of $151,713 at December 31, 2012. The changes in the estimatedclaims liability are as follows:

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Claims Payments


2011 19,498$ 112,411$ 112,411$ 19,498$ 2012 19,498 151,478 142,480 28,496



Claims Payments


2011 8,377$ 165,368$ 165,368$ 8,377$ 2012 8,377 218,059 215,578 10,858

Unemployment self-insurance plan - The County is self-insured for unemployment and uses a separateinternal service fund to account for unemployment claims. The revenues for this fund’s operation arecharges to various funds and payroll withholdings. The changes in the estimated claims liability are asfollows:

Long-term disability plan - The County is self-insured for long term disability liabilities. A separateinternal service fund is used to account for long-term disability claims. The revenues for this fund’soperation are charges to various funds and payroll withholdings. An independent administrator is hired toprocess claims and to perform management duties. The changes in the estimated claims liability are asfollows:

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Type of Risk Maximum Retention Per Occurrence

General and auto liability $ 300,000Property and crime coverage $ 11,000 - $1,000 deductible and 10% of next $100,000Flood and earthquake $ 1,000



Claims Payments


2011 191,812$ 855,277$ 365,999$ 681,090$ 2012 681,090 353,066 447,645 586,511

The reinsurance agreements discussed above include provisions for minimum annual premiums. As ofDecember 31, 2012 the Authority had met the minimum requirements.

The County uses a separate internal service fund to account for the activities of the retention fund heldby MMRMA. At December 31, 2012, the fund has net assets of $1,019,419.

The administration of the MMRMA is directed by a 10-member Board of Directors composed of municipalrepresentatives elected by the membership. The MMRMA Board establishes the general policies of theMMRMA that create and publish rules to be followed by the Executive Director and Board, and isempowered with the authority to impose sanctions or terminate membership. The County'sAdministrator/Chief Financial Officer has been designated the representative to the MMRMA to beresponsible for the execution of all loss control measures, to ensure the payment of all annual,supplementary or other payment requirements, to ensure the filing of all required lawsuits, claims,litigation, and reporting, and to act as a liaison between the County and MMRMA. This official issupported in this responsibility by the County's General Legal Counsel.

The MMRMA provides risk management, underwriting, reinsurance, litigation oversight and claim serviceswith member contributions allocated to meet these obligations. The MMRMA has reserves to pay lossesincurred by members that exceed individual retention levels and are not covered under reinsuranceagreements. Losses incurred within the established limits are general obligations of the MMRMA.

After the County has paid the self-insured retention portion, the MMRMA and its reinsurers are responsiblefor paying losses, including damages, loss adjustment expense and defense costs, with the limits at$15,000,000 per occurrence for liability coverage. For property losses, the MMRMA insures the Countyproperty at replacement value for any property rebuilt or repaired. If not replaced, the property isadjusted at actual cash value. If for any reason the Authority’s resources available to pay losses aredepleted, the payment of all unpaid losses of the County is the sole obligation of Monroe County.

General liability self-insurance - The County is a voluntary member of the Michigan Municipal RiskManagement Authority (MMRMA) established in January 1980, pursuant to laws of the State of Michiganwhich authorizes local units of government to exercise jointly any power, privilege or authority whicheach might exercise separately. The MMRMA administers risk management services and provides MonroeCounty with loss protection for general and auto liability, and property and crime coverage. Under mostcircumstances the County's maximum loss per occurrence is limited as follows:

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Road Commission Component Unit

12. CONTINGENT LIABILITIES

13. PROPERTY TAXES

The Road Commission is exposed to various risks of loss related to property loss, torts, errors andomissions, employee injuries, as well as medical benefits provided to employees. The Road Commissionhas purchased commercial insurance for medical benefits claims and participates in the Michigan CountyRoad Commission Self-Insurance Pool for claims relating to general liability, excess liability, auto liability,errors and omissions, and physical damage (equipment, building and contents). The Road Commission usesthe Accident Fund of Michigan for workers’ compensation insurance. Settled claims for the commercialinsurance have not exceeded the amount of insurance coverage in any of the past four fiscal years.

The county road commissions in the State of Michigan established a trust fund, known as the MichiganCounty Road Commission Self-Insurance Pool (the “Pool”) pursuant to the provisions of Act l38 of theMichigan Public Acts of 1982. The Pool provides for joint and cooperative action relative to members'financial and administrative resources for the purpose of providing risk management services along withproperty and liability protection. Membership is restricted to road commissions and related roadcommission activities within the State.

The assessed value of real and personal property is established by the local units, accepted by the Countyand equalized under State statute at approximately 50% of the current estimated market value. In March1994, Michigan voters approved Proposal A, which limits annual increases in assessed values to the lesserof 5% or the rate of inflation with assessed value reverting to 50% of true cash value when the property issold. Property taxes are levied based on the taxable value of the property (as defined under Proposal A).Taxable value is determined by using such factors as equalized value, assessed value, and capped value,along with a value change multiplier.

The Pool program operates as a common risk-sharing management program for road commissions inMichigan; member premiums are used to purchase excess insurance coverage and to pay member claimsin excess of deductible amounts.

Amounts received or receivable from grantor agencies are subject to audit and adjustment by thoseagencies, principally the state and federal governments. Any disallowed claims, including amountsalready collected, may constitute a liability of the applicable funds. The amount, if any, of expenditureswhich may be disallowed by the grantor cannot be determined at this time although the County expectssuch amounts, if any, to be immaterial.

The County is the defendant in various lawsuits. Although the outcome of these lawsuits is not presentlydeterminable, it is the opinion of the County’s counsel that resolution of these matters will not have amaterial adverse effect on the financial condition of the County.

County property taxes are levied annually on July 1 (the lien date) to fund operations for the currentyear. The property taxes are due in full within nine months (prior to March 1), at which time uncollectedtaxes became delinquent.

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14. NET INVESTMENT IN CAPITAL ASSETS

Capital assetsCapital assets not being depreciated 218,500$ Capital assets being depreciated, net 31,234,152

31,452,652

Related debtTotal bonds and notes payable 11,350,000 Net bond premium/discount (46,009)

11,303,991

Net investment in capital assets 20,148,661$

The composition of net investment in capital assets, for the governmental activities as ofDecember 31, 2012, was as follows:

The Monroe County Library System was authorized by a special election to levy 1.0 mills. The Library’s2012 property taxes were levied on December 1, 2011 based on assessed valuations as of December 31,2010. The taxable value for real and personal property for the year amounted to $5.625 billion based on apercentage of the property’s fair market value. Taxes levied December 1, 2012, totaling $5,604,487 wererecorded as taxes receivable and deferred revenue.

The taxable value of real and personal property for the July 1, 2012 levy was $5.60 billion. The generaloperating tax rate for this levy was at the maximum rate of 4.7952 mills, as adjusted by the HeadleeAmendment to the State of Michigan Constitution. The County also had a voter approved tax of 0.5 millsfor senior citizen services, 0.2 for the Fairview Infirmary, 0.1 for the Museum and 0.05 for the Veteranson the December 31, 2012 voter-approved levy.

By agreement with various taxing authorities, the County purchases at face value the real property taxesreturned delinquent each March 1 and records a corresponding delinquent taxes receivable.

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15. FUND BALANCES - GOVERNMENTAL FUNDS

Revenue Federal

County Sharing Prisoner Senior Nonmajor

General Health Reserve Housing Citizen Funds Total

Nonspendable

Prepaids $ 31,211 $ - $ - $ - $ - $ - $ 31,211 Long-term advances 774,348 - - - - - 774,348

Total nonspendable 805,559 - - - - - 805,559

Restricted for

Budget stabilization 3,062,391 - - - - - 3,062,391 State revenue sharing - - 674,541 - - - 674,541 General government - - - - - 554,376 554,376 Public safety - - - - - 968,753 968,753 Health and welfare - 1,712,127 - - 620,368 1,333,997 3,666,492 Recreation and culture - - - - - 24,750 24,750 Debt service - - - - - 129,201 129,201 Capital projects - - - - - 1,762,023 1,762,023

Total restricted 3,062,391 1,712,127 674,541 - 620,368 4,773,100 10,842,527

Committed for

General government 915,010 - - - - - 915,010 Public safety - - - 595,377 - 1,344,969 1,940,346 Health and welfare - 1,162,543 - - - 1,001 1,163,544

Total committed 915,010 1,162,543 - 595,377 - 1,345,970 4,018,900

Assigned for

Encumbrances 43,505 - - - - - 43,505

Unassigned (deficit) 6,298,270 - - - - (79,049) 6,219,221

Total fund balances,governmental funds $11,124,735 $ 2,874,670 $ 674,541 $ 595,377 $ 620,368 $ 6,040,021 $21,929,712

Fund balance classifications that comprise a hierarchy based primarily on the extent to which a government isbound to observe constraints imposed upon the use of the resources reported in governmental funds are asfollows:

112



16. FUND DEFICIT

17. RESTATEMENTS

The County adopted the provisions of GASB Statement No. 63, Financial Reporting of Deferred Outflowsof Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, in the current year. As a result, the beginning net positionof the governmental activities was decreased by $71,353 to eliminate unamortized bond issuance costs,which no longer meet the definition of an asset and are now required to be recognized as an expense inthe period incurred.

The Historical Commission museum fund has a deficit in the amount of $79,049. This fund deficit is dueto timing in tax collections. Specifically, the Historical Commission museum fund was funded with PublicAct 88 monies in calendar year 2011. This is billed on the winter tax bill for which collections begin inDecember of each year, with the majority collected in the next calendar year. Accordingly, the year end2012 fund balance deficit has been eliminated with the revenue collected in 2013.

113


114

REQUIRED SUPPLEMENTARY INFORMATION

115


116

COUNTY OF MONROE Exhibit H-1

Employees' Retirement SystemRequired Supplementary Information

Schedule of Funding Progress

Actuarial Unfunded UAAL as aActuarial Actuarial Accrued (Overfunded) Percentage ofValuation Value of Liability AAL Funded Covered of Covered

Date Assets (AAL) (UAAL) Ratio Payroll Payroll

12/31/02 148,404,995$ 125,652,447$ (22,752,548)$ 118.1% 35,895,185$ -63.4%12/31/03 162,683,115 139,141,015 (23,542,100) 116.9% 37,862,618 -62.2%12/31/04 162,725,639 150,510,011 (12,215,628) 108.1% 38,712,508 -31.6%12/31/05 163,151,579 163,641,875 490,296 99.7% 41,047,874 1.2%12/31/06 169,283,765 174,001,978 4,718,213 97.3% 41,821,305 11.3%12/31/07 181,320,182 186,841,313 5,521,131 97.0% 43,152,156 12.8%12/31/08 184,967,843 199,860,437 14,892,594 92.5% 43,961,798 33.9%12/31/09 188,779,278 211,333,497 22,554,219 89.3% 42,893,801 52.6%12/31/10 192,859,386 231,680,911 38,821,525 83.2% 38,418,135 101.0%12/31/11 192,013,890 240,885,825 48,871,935 79.7% 38,891,988 125.7%

Schedule of Employer Contributions

AnnualRequired Percentage

Year Ended Contribution Contributed

12/31/03 191,979$ 100.00%12/31/04 1,411,037 100.00%12/31/05 2,034,222 100.00%12/31/06 3,170,195 100.00%12/31/07 4,910,784 100.00%12/31/08 5,391,367 100.00%12/31/09 5,547,369 100.00%12/31/10 5,938,425 100.00%12/31/11 5,994,825 100.00%12/31/12 7,184,103 100.00%

117

COUNTY OF MONROE Exhibit H-2

Retiree Health PlanRequired Supplementary Information

Schedule of Funding Progress

Actuarial UAAL as aActuarial Actuarial Accrued Unfunded Percentage ofValuation Value of Liability AAL Funded Covered of Covered

Date Assets (AAL) (UAAL) Ratio Payroll Payroll

12/31/05 12,404,997$ 80,736,245$ 68,331,248$ 15.4% 25,441,192$ 268.6%12/31/06 17,080,952 87,109,351 70,028,399 19.6% 25,270,126 277.1%12/31/07 21,413,565 90,534,928 69,121,363 23.7% 26,982,828 256.2%12/31/08 26,350,668 87,155,864 60,805,196 30.2% 26,551,067 229.0%12/31/09 27,766,030 88,099,692 60,333,662 31.5% 23,660,370 255.0%12/31/10 26,954,468 107,199,762 80,245,294 25.1% 19,091,364 420.3%12/31/11 29,756,300 106,191,863 76,435,563 28.0% 19,719,996 387.6%

Schedule of Employer Contributions

AnnualRequired Actual Percentage

Year Ended Contribution Contribution Contributed

12/31/06 4,374,135$ 5,577,801$ 127.52%12/31/07 6,124,074 5,178,953 84.57%12/31/08 7,946,073 7,362,214 92.65%12/31/09 7,788,155 4,803,872 61.68%12/31/10 6,950,811 2,746,766 39.52%12/31/11 6,752,713 5,714,954 84.63%12/31/12 9,087,406 6,399,838 70.43%

118

SUPPLEMENTARY INFORMATION

119


120

COMBINING AND INDIVIDUAL FUNDSTATEMENTS AND SCHEDULES

121


122


Major Governmental Funds

General Fund

County Health Special Revenue Fund

Revenue Sharing Special Revenue Fund

Senior Citizen Special Revenue Fund

Federal Prisoner Housing Fund

The General Fund is the County’s primary operating fund. It accounts for all financial resources of thegeneral government, except those required to be accounted for in another fund.

The County Health Special Revenue Fund is used to account for revenue restricted for the purpose ofproviding health protection, maintenance, and improvement for the residents of Monroe County.

The Revenue Sharing Reserve Special Revenue Fund was permitted by Public Act 357 of 2004 whichprovides a funding mechanism to serve as a substitute to county revenue sharing payments. Thissubstitute funding mechanism involves a gradual shift of county property tax millage from a winter taxlevy to a summer tax levy and, additionally, required the establishment of a restricted fund.

The Senior Citizen Special Revenue Fund controls the special tax levy and general fund appropriationfor services and special programs for seniors.

The Federal Prisoner Housing Fund is used to account for the activity of the second jail facility.

123


124

COUNTY OF MONROE, MICHIGAN EXHIBIT I-1

Schedule of Revenues and Other Sources - by SourceBudget and ActualGeneral FundFor the Year Ended December 31, 2012

Actual overOriginal Final (under) FinalBudget Budget Actual Budget

TaxesCurrent property taxes 26,376,534$ 26,376,534$ 25,820,660$ (555,874)$ Delinquent personal property taxes 45,000 45,000 19,645 (25,355) Industrial facilities tax 719,678 719,678 685,877 (33,801) Trailer tax 32,000 32,000 33,769 1,769 Payments in lieu of taxes 18,000 18,000 53,308 35,308

Total taxes 27,191,212 27,191,212 26,613,259 (577,953)

Licenses and permitsPistol permits 35,000 35,000 47,276 12,276 Other 147,300 147,300 141,134 (6,166)

Total licenses and permits 182,300 182,300 188,410 6,110

IntergovernmentalEmergency management division grant 27,492 27,492 - (27,492) OPSG 2009 Grant - 83,696 83,695 (1) SHSP state homeland security grant 62,399 162,444 186,463 24,019 LETPP - law enforcement - 86,653 - (86,653) UASI homeland security grant - 860,568 387,540 (473,028) COPS secure our schools 07 - 18,840 - (18,840) Saturate Monroe County grant - 76,636 76,636 - Marine safety (Federal) 12,000 12,000 22,000 10,000 Justice department 2005-DJ-BX 22,406 22,406 22,406 - Justice department 2009-DJ-BX-0158 21,727 21,727 19,929 (1,798) Welfare grant 2,500 2,500 7,200 4,700 Justice-Byrne-2009-SB-B9-2232 - - 143 143 CDBG grant - 2005-EDC-MBT - 17,000 100,000 83,000 Traffic enforcement - 39,999 30,962 (9,037)

State Criminal Alien Assistance program - 1,920 640 (1,280) Internet Crimes Against Children grant 18,424 18,424 11,062 (7,362) Marine Northern Border Initiative 15,000 15,000 10,364 (4,636) Intersection enforcement 67,000 62,471 59,033 (3,438) Probate court judges salaries 285,000 285,000 296,540 11,540 Circuit court judges salaries 185,000 185,000 135,252 (49,748) District court judges salaries 137,172 137,172 137,172 - Crime victim/witness grant 119,927 119,927 119,927 - Assistant prosecutor 30,000 30,000 26,753 (3,247) Family court - juvenile officer 78,300 78,300 78,389 89 District court caseflow assistance 45,000 45,000 23,232 (21,768) District court drug caseload assistance 2,000 2,000 968 (1,032)

continued…

125




Intergovernmental (concluded)Circuit court drug caseload assistance -$ -$ 665$ 665$ State court equity fund 800,000 800,000 669,914 (130,086) Remonumentation 54,344 54,344 53,661 (683) Other state grants 19,500 19,500 12,696 (6,804) Secondary road patrol 173,300 173,871 151,768 (22,103) Justice training program 42,948 58,299 82,974 24,675 Community services grant 208,775 208,775 202,294 (6,481) Community corrections grant - - 134,520 134,520 Income tax - - 53,232 53,232 Cigarette tax 19,630 19,630 2,365 (17,265) Liquor licenses 16,500 16,500 15,635 (865)

Total intergovernmental 2,466,344 3,763,094 3,216,030 (547,064)

Contributions from local units 2,081,164 2,109,059 2,184,360 75,301

Charges for services Attorney fee reimbursement 252,800 252,800 258,294 5,494 Circuit court costs 85,000 85,000 68,738 (16,262) District court costs 1,300,000 1,300,000 1,144,659 (155,341) District court services 791,000 791,000 769,778 (21,222) Probate court services 60,420 60,420 57,856 (2,564) Family court services 30,750 30,750 30,842 92 District court - day reporting fees 50,000 50,000 42,583 (7,417) Treasurer services 18,010 18,010 27,662 9,652 Clerk services 201,300 201,300 209,265 7,965 Register of deeds services 775,000 775,000 999,528 224,528 Equalization services 29,000 29,000 29,197 197 Elections 110,000 110,000 39,121 (70,879) Planning department services 19,500 19,500 22,659 3,159 Sheriff services 232,000 232,000 250,567 18,567 Sheriff contract special services 72,637 96,401 97,765 1,364 Jail 207,000 207,000 218,693 11,693 Animal Control 27,890 27,890 28,113 223 Medical examiner fees 14,000 14,000 22,220 8,220 Parks and recreation 3,910 3,910 3,648 (262) County extension services 360 360 3,600 3,240 Fees and permits - soil erosion 69,812 69,812 67,650 (2,162)

Total charges for services 4,350,389 4,374,153 4,392,438 18,285

continued…

126




Fines and forfeitsOrdinance fines and costs 551,000$ 551,000$ 500,103$ (50,897)$ Bond forfeitures 40,000 40,000 31,981 (8,019) Forfeitures - other 10,000 10,000 973 (9,027)

Total fines and forfeitures 601,000 601,000 533,057 (67,943)

Interest and rentsInterest on deposits 60,000 60,000 66,786 6,786

Other revenuesContributions from private sources 78,900 88,900 85,144 (3,756) Finance department revenue 62,024 62,124 70,016 7,892 General reimbursements 443,496 443,496 360,812 (82,684) Gain on sale of capital assets 2,000 2,000 25,186 23,186 Rebates - food services 3,000 3,000 1,456 (1,544) Retirement board reimbursements 77,168 77,168 57,961 (19,207) Indirect costs reimbursements 1,145,619 1,146,557 1,193,067 46,510 Other 44,300 44,500 87,645 43,145

Total other revenues 1,856,507 1,867,745 1,881,287 13,542

Other financing sourcesTransfers in 3,361,969 3,361,969 3,312,122 (49,847)

Total revenues and other financing sources 42,150,885$ 43,510,532$ 42,387,749$ (1,122,783)$

concluded

127


Schedule of Expenditures and Other Uses - by ActivityBudget and ActualGeneral FundFor the Year Ended December 31, 2012


General GovernmentBoard of Commissioners

Salaries and wages 153,599$ 147,054$ 146,136$ (918)$ Employee benefits 79,091 78,559 77,351 (1,208) Services and supplies 32,230 47,146 45,061 (2,085)

264,920 272,759 268,548 (4,211)

Circuit CourtSalaries and wages 286,933 286,933 283,264 (3,669) Employee benefits 182,286 182,286 178,458 (3,828) Services and supplies 473,146 473,156 380,011 (93,145)

942,365 942,375 841,733 (100,642)

District CourtSalaries and wages 1,232,521 1,237,131 1,238,568 1,437 Employee benefits 948,044 948,044 951,329 3,285 Services and supplies 377,524 399,622 397,542 (2,080)

2,558,089 2,584,797 2,587,439 2,642

District Court ProbationSalaries and wages 309,549 309,549 314,414 4,865 Employee benefits 279,434 279,434 274,041 (5,393) Services and supplies 20,809 20,809 18,902 (1,907)

609,792 609,792 607,357 (2,435)

District Court Probation - Day ReportingSalaries and wages 51,709 51,709 51,709 - Employee benefits 51,371 51,371 50,903 (468) Services and supplies 1,319 1,319 1,319 -

104,399 104,399 103,931 (468)

Probate CourtSalaries and wages 393,911 393,911 389,474 (4,437) Employee benefits 222,410 220,610 207,363 (13,247) Services and supplies 99,805 119,625 104,541 (15,084)

716,126 734,146 701,378 (32,768)

continued...

128

COUNTY OF MONROE, MICHIGAN EXHIBIT I-2(continued)



General Government (continued)County Guardian

Services and supplies 72,800$ 77,300$ 76,954$ (346)$

Adult ProbationServices and supplies 16,466 18,466 13,367 (5,099)

Family CourtSalaries and wages 762,527 761,505 759,265 (2,240) Employee benefits 466,555 459,557 418,073 (41,484) Services and supplies 300,503 301,703 307,126 5,423

1,529,585 1,522,765 1,484,464 (38,301)

Family Court - Probation OfficerSalaries and wages 343,826 343,826 343,459 (367) Employee benefits 288,092 283,092 276,809 (6,283) Services and supplies 16,348 15,148 13,923 (1,225)

648,266 642,066 634,191 (7,875)

District Court Pretrial ServicesSalaries and wages 103,418 103,418 98,843 (4,575) Employee benefits 90,361 90,361 87,915 (2,446) Services and supplies 2,637 2,637 2,637 -

196,416 196,416 189,395 (7,021)

Jail Alternative Work ServicesSalaries and wages 38,730 38,730 38,730 - Employee benefits 27,839 27,839 27,839 - Services and supplies 988 988 988 -

67,557 67,557 67,557 -

continued...

129




General Government (continued)Administrator

Salaries and wages 107,057$ 136,384$ 136,601$ 217$ Employee benefits 84,121 84,121 82,833 (1,288) Services and supplies 5,653 6,732 6,214 (518)

196,831 227,237 225,648 (1,589)

ElectionsServices and supplies 183,500 183,500 143,622 (39,878)

Finance DepartmentSalaries and wages 164,600 164,600 160,848 (3,752) Employee benefits 99,270 99,270 103,759 4,489 Services and supplies 52,806 37,018 29,385 (7,633)

316,676 300,888 293,992 (6,896)

ClerkSalaries and wages 565,607 590,281 579,176 (11,105) Employee benefits 397,134 399,105 389,084 (10,021) Services and supplies 103,606 104,236 81,384 (22,852)

1,066,347 1,093,622 1,049,644 (43,978)

EqualizationSalaries and wages 179,988 179,988 181,337 1,349 Employee benefits 127,551 127,551 127,178 (373) Services and supplies 81,790 81,790 63,879 (17,911)

389,329 389,329 372,394 (16,935)

Register of DeedsSalaries and wages 111,822 115,904 116,729 825 Employee benefits 103,448 103,806 103,959 153 Services and supplies 20,786 20,816 11,724 (9,092)

236,056 240,526 232,412 (8,114)

continued...

130




General Government (continued)Human Resources

Salaries and wages 135,935$ 138,626$ 139,643$ 1,017$ Employee benefits 84,324 84,324 82,572 (1,752) Services and supplies 10,766 10,766 8,602 (2,164)

231,025 233,716 230,817 (2,899)

Prosecuting AttorneySalaries and wages 1,061,085 1,048,557 1,056,077 7,520 Employee benefits 789,136 740,043 645,899 (94,144) Services and supplies 116,305 124,796 115,101 (9,695)

1,966,526 1,913,396 1,817,077 (96,319)

Crime Victims ServicesSalaries and wages 75,329 78,903 78,742 (161) Employee benefits 68,993 71,287 71,112 (175) Services and supplies 2,471 2,671 2,324 (347)

146,793 152,861 152,178 (683)

Drug Prosecution GrantSalaries and wages - 5,897 3,434 (2,463) Employee benefits - - 2,400 2,400 Services and supplies - 5 5 -

- 5,902 5,839 (63)

Retirement BoardSalaries and wages 36,875 36,875 29,964 (6,911) Employee benefits 39,153 39,153 33,655 (5,498) Services and supplies 1,140 1,140 1,111 (29)

77,168 77,168 64,730 (12,438)

RemonumentationSalaries and wages 5,846 5,846 3,039 (2,807) Employee benefits 4,585 4,585 1,468 (3,117) Services and supplies 42,594 44,237 50,123 5,886

53,025 54,668 54,630 (38)

continued...

131




General Government (continued)Treasurer

Salaries and wages 200,484$ 200,484$ 195,703$ (4,781)$ Employee benefits 153,544 153,544 149,658 (3,886) Services and supplies 63,562 63,562 45,862 (17,700)

417,590 417,590 391,223 (26,367)

Cooperative Extension ServicesSalaries and wages 80,826 80,826 79,426 (1,400) Employee benefits 48,906 48,906 48,774 (132) Services and supplies 55,844 63,850 60,426 (3,424)

185,576 193,582 188,626 (4,956)

Information ServicesSalaries and wages 379,181 385,049 388,259 3,210 Employee benefits 268,919 271,207 269,833 (1,374) Services and supplies 58,803 58,803 48,975 (9,828)

706,903 715,059 707,067 (7,992)

Purchasing and Property MaintenanceSalaries and wages 310,931 310,931 299,456 (11,475) Employee benefits 219,214 219,214 209,213 (10,001) Services and supplies 550,136 513,057 462,431 (50,626)

1,080,281 1,043,202 971,100 (72,102)

I.C.E. OperationsServices and supplies 52,586 58,671 59,358 687

Courthouse SecurityServices and supplies 88,515 88,515 87,478 (1,037)

Drain CommissionSalaries and wages 193,422 218,542 188,945 (29,597) Employee benefits 90,411 92,545 95,997 3,452 Services and supplies 39,097 39,738 27,480 (12,258)

322,930 350,825 312,422 (38,403)

continued...

132




General Government (concluded)Parks Maintenance

Salaries and wages 53,730$ 53,730$ 52,239$ (1,491)$ Employee benefits 37,942 37,942 36,390 (1,552) Services and supplies 86,410 87,784 83,298 (4,486)

178,082 179,456 171,927 (7,529)

Soil ErosionSalaries and wages 59,864 59,864 59,864 - Employee benefits 58,733 58,733 58,587 (146) Services and supplies 7,177 7,177 5,724 (1,453)

125,774 125,774 124,175 (1,599)

General County ExpenseServices and supplies 324,300 334,300 301,058 (33,242)

Building AuthorityServices and supplies 285 385 250 (135)

Total General Government 16,072,879 16,153,010 15,533,981 (619,029)

Public SafetySheriff - Administrator and Road Patrol

Salaries and wages 478,776 485,773 481,341 (4,432) Employee benefits 343,820 344,387 345,826 1,439 Services and supplies 616,788 615,428 626,980 11,552

1,439,384 1,445,588 1,454,147 8,559

Detectives BureauSalaries and wages 415,980 433,005 422,252 (10,753) Employee benefits 319,505 319,505 334,378 14,873 Services and supplies 9,990 9,990 9,990 -

745,475 762,500 766,620 4,120

continued...

133




Public Safety (continued)M.A.N.T.I.S. Services

Salaries and wages 65,984$ 65,984$ 67,763$ 1,779$ Employee benefits 54,366 54,366 48,745 (5,621) Services and supplies 1,532 1,532 1,532 -

121,882 121,882 118,040 (3,842)

Road PatrolSalaries and wages 2,255,846 2,238,821 2,234,868 (3,953) Employee benefits 1,684,324 1,684,324 1,690,726 6,402 Services and supplies 52,381 52,381 52,126 (255)

3,992,551 3,975,526 3,977,720 2,194

Sheriff RecordsSalaries and wages 168,156 168,156 163,211 (4,945) Employee benefits 152,906 152,906 148,886 (4,020) Services and supplies 4,144 4,144 4,144 -

325,206 325,206 316,241 (8,965)

Youth ServicesSalaries and wages 130,095 130,095 127,703 (2,392) Employee benefits 108,602 108,602 107,770 (832) Services and supplies 3,071 3,071 3,071 -

241,768 241,768 238,544 (3,224)

Contractual-Local UnitsSalaries and wages 1,229,126 1,229,126 1,200,497 (28,629) Employee benefits 945,654 945,654 916,563 (29,091) Services and supplies 48,352 48,352 45,371 (2,981)

2,223,132 2,223,132 2,162,431 (60,701)

continued...

134




Public Safety (continued)Contractual-Schools

Salaries and wages 337,874$ 338,074$ 315,210$ (22,864)$ Employee benefits 245,573 245,573 228,752 (16,821) Services and supplies 12,094 11,894 11,764 (130)

595,541 595,541 555,726 (39,815)

State Criminal Alien Assistance ProgramsServices and supplies - 1,920 141 (1,779)

Justice Department Grant 2005 - DJ - BX0007Salaries and wages 10,790 11,264 11,263 (1) Employee benefits 6,184 6,557 6,558 1

5,163 5,151 5,151 -

22,137 22,972 22,972 -

Justice Department Grant 2009-DJ-BX-0158Services and supplies 21,727 21,727 19,928 (1,799)

Drug EnforcementSalaries and wages 87,685 87,685 82,535 (5,150) Employee benefits 59,234 59,234 63,230 3,996 Services and supplies 2,083 2,083 2,083 -

149,002 149,002 147,848 (1,154)

Internet Crimes Against ChildrenServices and supplies 18,438 18,438 11,063 (7,375)

Secondary Road PatrolSalaries and wages 202,454 203,023 196,244 (6,779) Employee benefits 161,516 162,817 161,018 (1,799) Services and supplies 24,570 23,271 21,887 (1,384)

388,540 389,111 379,149 (9,962)

Special ContractualSalaries and wages 45,200 60,200 59,773 (427) Employee benefits 26,289 35,053 34,802 (251) Services and supplies 1,148 1,148 1,148 -

72,637 96,401 95,723 (678)

continued...

135




Public Safety (continued)Enforcement-PT-06-07

Services and supplies -$ 76,636$ 76,636$ -$

Justice TrainingServices and supplies 42,948 58,299 58,298 (1)

Intersection EnforcementSalaries and wages 37,861 36,520 31,714 (4,806) Employee benefits 22,116 21,043 18,490 (2,553) Services and supplies 7,492 4,020 3,500 (520)

67,469 61,583 53,704 (7,879)

Traffic Enforcement-AL-06-07Salaries and wages - 24,968 24,551 (417) Employee benefits - 11,755 14,275 2,520 Services and supplies - 4,633 2,528 (2,105)

- 41,356 41,354 (2) Marine Safety

Salaries and wages 27,000 20,650 16,218 (4,432) Employee benefits 15,773 12,705 4,009 (8,696) Services and supplies 11,692 21,110 20,936 (174)

54,465 54,465 41,163 (13,302)

Marine Northern Border InitiativeServices and supplies 15,000 15,000 10,364 (4,636)

Corrections - JailSalaries and wages 2,343,602 2,343,602 2,455,343 111,741 Employee benefits 1,866,790 1,866,790 1,861,889 (4,901) Services and supplies 1,083,879 1,083,879 1,053,942 (29,937)

5,294,271 5,294,271 5,371,174 76,903

Corrections - Medical ServicesSalaries and wages 95,959 95,959 94,625 (1,334) Employee benefits 69,040 69,040 57,077 (11,963) Services and supplies 80,247 80,247 78,778 (1,469)

245,246 245,246 230,480 (14,766)

continued...

136




Public Safety (concluded)Community Work Services Program

Salaries and wages 64,422$ 65,126$ 65,004$ (122)$ Employee benefits 43,523 43,585 43,285 (300) Services and supplies 173,118 172,352 164,934 (7,418)

281,063 281,063 273,223 (7,840)

Emergency Management Salaries and wages 145,367 154,084 156,673 2,589 Employee benefits 58,747 83,323 86,528 3,205 Services and supplies 95,673 94,979 78,795 (16,184)

299,787 332,386 321,996 (10,390)

UASI homeland security grantServices and supplies - 436,000 252,937 (183,063)

2010 OPSG GrantSalaries and wages 23,563 55,216 50,928 (4,288) Employee benefits 15,843 28,690 31,655 2,965 Services and supplies 22,795 37,671 24,179 (13,492)

62,201 121,577 106,762 (14,815)

Operation StonegardenServices and supplies - 83,696 83,695 (1)

Animal ControlSalaries and wages 171,236 174,789 181,144 6,355 Employee benefits 132,131 132,336 134,100 1,764 Services and supplies 109,735 107,735 95,074 (12,661)

413,102 414,860 410,318 (4,542)

Total Public Safety 17,132,972 17,907,152 17,598,397 (308,755)

continued...

137




Public WorksDrains at Large

Services and supplies 83,489$ 100,288$ 100,288$ -$

RoadsServices and supplies - 30,000 30,000 -

Total Public Works 83,489 130,288 130,288 -

Health and WelfareMedical Examiner

Salaries and wages 49,508 57,855 54,447 (3,408) Employee benefits 13,634 19,761 18,911 (850) Services and supplies 113,912 151,362 152,350 988

177,054 228,978 225,708 (3,270)

Commission on AgingSalaries and wages 117,199 117,199 112,286 (4,913) Employee benefits 57,586 57,586 62,170 4,584 Services and supplies 116,786 116,786 73,020 (43,766)

291,571 291,571 247,476 (44,095)

Veterans' BureauSalaries and wages 21,592 21,592 21,840 248 Employee benefits 8,775 8,775 8,778 3 Services and supplies 6,225 6,225 2,642 (3,583)

36,592 36,592 33,260 (3,332)

Ambulance FundSalaries and wages 4,380 4,380 1,434 (2,946)

Area Wide Water Quality BoardServices and supplies 7,000 7,055 7,055 -

Industrial Development CorporationServices and supplies 51,850 51,850 51,850 -

Mental Health FacilityServices and supplies 997,803 997,803 997,803 -

Total Health and Welfare 1,566,250 1,618,229 1,564,586 (53,643)

continued...

138




Community and Economic DevelopmentEconomic Development - Dundee

Services and supplies 126,742$ 126,742$ 93,846$ (32,896)$

PlanningSalaries and wages 143,161 155,819 161,230 5,411 Employee benefits 72,153 73,086 76,702 3,616 Services and supplies 59,455 58,280 50,701 (7,579)

274,769 287,185 288,633 1,448 Plat Board

Services and supplies 250 250 - (250)

State Boundary CommissionServices and supplies 150 150 - (150)

Economic DevelopmentServices and supplies 29,784 29,784 29,784 -

CDBG grant - 2005-EDC-MBTServices and supplies - 17,000 100,000 83,000

Total Community and Economic Development 431,695 461,111 512,263 51,152

Recreation and CulturalS.E. Michigan Council of Governments

Services and supplies 44,115 44,115 44,115 -

Other ExpendituresInsurance, Bonds and Fringes

Services and supplies 93,710 93,710 78,381 (15,329)

ContingenciesServices and supplies 667,175 370,445 - (370,445)

Total Other Expenditures 760,885 464,155 78,381 (385,774)

Capital Outlay 340,000 1,146,345 660,109 (486,236)

Total Expenditures 36,432,285 37,924,405 36,122,120 (1,802,285)

continued...

139

COUNTY OF MONROE, MICHIGAN EXHIBIT I-2(concluded)



Other Uses - Transfers outHealth Department 1,029,501$ 1,029,501$ 1,029,501$ -$ Friend of the Court 682,147 682,147 682,147 - New Jail 1,157,830 1,157,830 1,157,830 - Central Dispatch 1,060,189 1,060,189 1,060,189 - Social Services 1,001 1,001 1,001 - Child Care 1,694,994 1,694,994 1,694,994 - Building Authority Debt 467,438 467,438 467,438 - 911/Emergency Operations Center Construction 25,000 25,000 25,000 - Imaging - 53,999 650 (53,349)

Total Other Uses - Transfers Out 6,118,100 6,172,099 6,118,750 (53,349)

Total Expenditures and Transfers Out 42,550,385$ 44,096,504$ 42,240,870$ (1,855,634)$

concluded

140

COUNTY OF MONROE, MICHIGAN Exhibit J

Schedule of Revenues, Expenditures and Changes in Fund BalanceBudget and ActualCounty Health Special Revenue FundFor the Year Ended December 31, 2012

ActualOriginal Final over (under) Budget Budget Actual Final Budget

RevenuesLicenses and permits 393,000$ 393,000$ 310,775$ (82,225)$ Intergovernmental revenue 2,577,378 2,672,543 2,439,810 (232,733) Charges for services 742,893 787,893 736,188 (51,705) Other revenue 183,694 196,694 238,576 41,882

Total revenues 3,896,965 4,050,130 3,725,349 (324,781)


Health and welfare: Salaries and wages 2,053,824 2,082,386 1,909,651 (172,735) Employee benefits 1,088,594 1,093,168 975,751 (117,417) Services and supplies 2,106,921 2,229,325 1,651,718 (577,607)

Capital outlay - 6,800 6,717 (83)



Other financing sources (uses)Transfers in 1,029,501 1,029,501 1,029,501 - Transfers (out) (20,932) (20,932) (20,932) -

Total other financing (uses) 1,008,569 1,008,569 1,008,569 -




141

COUNTY OF MONROE, MICHIGAN Exhibit K

Schedule of Revenues, Expenditures, and Changes in Fund BalancesBudget and ActualFederal Prisoner Housing Special Revenue FundFor the Year Ended December 31, 2012

ActualOriginal Final over (under) Budget Budget Actual Final Budget

RevenuesIntergovernmental revenues 2,182,835$ 2,182,835$ 2,277,681$ 94,846$ Charges for services 248,000 248,000 146,341 (101,659) Other revenue 1,500 1,500 18,801 17,301

Total revenues 2,432,335 2,432,335 2,442,823 10,488


Public safety:Salaries and wages 1,630,994 1,631,094 1,531,701 (99,393) Employee benefits 1,273,818 1,273,818 1,144,683 (129,135) Services and supplies 785,353 785,253 766,165 (19,088)



Other financing sourcesTransfers in 1,157,830 1,157,830 1,157,830 -

Net changes in fund balances (100,000) (100,000) 158,104 258,104

Fund balances, beginning of year 437,273 437,273 437,273 -

Fund balances, end of year 337,273$ 337,273$ 595,377$ 258,104$

142


Nonmajor Governmental Funds

Special Revenue Funds

Friend of the Court Fund

Central Dispatch Authority Fund

Marriage Counseling Fund

Prosecutor Drug Forfeiture Fund

Special Investigation Drug Enforcement Fund

Federally Forfeited Property Fund

MANTIS Drug Forfeiture Fund

Accounts for the County revenue that is restricted for the operation of this division of the Circuit Court.

Accounts for the activity of the public safety answering point for all of Monroe County, includingvillages, townships and cities participating in the Emergency Telephone District of the 9-1-1 Service

Established under Act 4 of the Public Acts of 1980 for fees allocated to be used for family counselingservices.

Established to account for monies received by the prosecutor’s office for drug forfeiture cases.

Accounts for monies received by the Sheriff’s Department after cases have been prosecuted andforfeiture monies are available for distribution and use within the Department for Local LawEnforcement activities.

Accounts for monies received by the Sheriff’s Department after cases have been prosecuted andforfeiture monies are available for distribution and use within the Department for Drug Enforcement

Accounts for monies received by the Monroe Area Narcotics Team and Investigative Services (MANTIS)which is a multi-jurisdictional task force combining the efforts of the Michigan State Police, MonroeCounty Sheriff’s Office and the Monroe Police Department.

143



Forfeited Property Non-Drug Fund

Job Training and Placement Fund

Workforce Investment Fund

Sheriff Training Fund

Social Services Fairview InfirmaryFund

Probate Court Youth Center Fund

Historical Commission Museum

Other Special Revenue Funds

Accounts for the revenue reserved for this division of the Probate Court and is used for the care of alljuveniles under the jurisdiction of the Court.

These funds account for specific grants requiring separate accounting as stipulated in the grantprovisions as well as several other small funds. These funds are not significant and are combined intoone category of special revenue funds. Financing is provided primarily by federal and state grants,other revenues and reimbursements, and transfers.

This fund was established to account for monies for special programs of the Historical Commission,including the activities of the museum.

Accounts for monies received by the Sheriff’s Department after cases have been prosecuted andforfeiture monies are available for distribution and use within the Department for Local LawEnforcement activities.

Accounts for costs involved with the training and placement of qualified county residents.

Accounts for costs related to the Adult Program, for adults who are economically disadvantaged, andthe Dislocated Workers Program, for certain laid-off individuals.

Utilizes State funds to provide corrective and protective service officers with training seminars toupdate and enhance the officers’ knowledge of criminal activities.

Functions under the directions of the County Board and State Family Independence Agency to providegeneral relief for indigent persons and medical care for eligible persons who are unable to provide it forthemselves.

144



Debt Service Funds

Debt Service

Capital Projects Funds

Capital Projects

These funds account for financial resources to be used for the acquisition of capital equipment orconstruction of major capital facilities.

These funds account for the accumulation of resources for, and the payment of, the general long-termobligations issued for the county and the Building Authority and other general obligations.

145


146

COUNTY OF MONROE, MICHIGAN Exhibit L-1

Combining Balance SheetNonmajor Governmental FundsDecember 31, 2012

Special Debt CapitalRevenue Service Projects Totals

AssetsCash and cash equivalents 1,107,978$ 129,200$ 255,238$ 1,492,416$ Investments 591,239 - - 591,239 Taxes receivable, current 1,990,073 - - 1,990,073 Accounts receivable 140 - - 140 Due from other governments 723,352 - - 723,352 Due from other funds 2,627,000 - 1,700,000 4,327,000 Inventory 30,642 - - 30,642

Total assets 7,070,424$ 129,200$ 1,955,238$ 9,154,862$

LiabilitiesAccounts payable 223,828$ -$ 93,212$ 317,040$ Accrued wages and fringes 376,289 - - 376,289 Due to other funds 210,797 - - 210,797 Advances from other governments 40,000 - - 40,000 Advances from other funds 50,000 - 100,000 150,000

Total liabilities 900,914 - 193,212 1,094,126

Deferred inflow of resourcesTaxes levied for a subsequent period 2,020,715 - - 2,020,715

Fund balancesRestricted 2,881,874 129,200 1,762,026 4,773,100 Committed 1,345,970 - - 1,345,970 Unassigned (deficit) (79,049) - - (79,049)

Total fund balances 4,148,795 129,200 1,762,026 6,040,021

Total liabilities, deferred inflow of resources and fund balances 7,070,424$ 129,200$ 1,955,238$ 9,154,862$

147

COUNTY OF MONROE, MICHIGAN Exhibit L-2

Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended December 31, 2012

Special Debt CapitalRevenue Service Projects Totals

RevenuesTaxes 1,724,141$ -$ -$ 1,724,141$ Licenses and permits 11,655 - - 11,655 Intergovernmental revenues 5,830,061 - - 5,830,061 Charges for services 1,109,484 - - 1,109,484 Fines and forfeits 121,421 - - 121,421 Interest and rents 1,482 626,277 - 627,759 Other revenue 818,535 - - 818,535

Total revenues 9,616,779 626,277 - 10,243,056


General government 2,528,706 - - 2,528,706 Public safety 6,003,305 - - 6,003,305 Health and welfare 3,024,091 - - 3,024,091 Recreation and culture 207,993 - - 207,993

Debt service:Principal - 790,000 - 790,000 Interest - 382,333 249 382,582 Issuance costs - - 18,900 18,900

Capital outlay 180,043 - 274,811 454,854

Total expenditures 11,944,138 1,172,333 293,960 13,410,431

Revenues under expenditures (2,327,359) (546,056) (293,960) (3,167,375)

Other financing sources (uses)Issuance of refunding bonds - - 1,060,000 1,060,000 Transfers in 3,448,223 467,438 25,000 3,940,661 Transfers (out) (9,892) - - (9,892)

Total other financing sources 3,438,331 467,438 1,085,000 4,990,769

Net changes in fund balances 1,110,972 (78,618) 791,040 1,823,394

Fund balances, beginning of year 3,037,823 207,818 970,986 4,216,627

Fund balances, end of year 4,148,795$ 129,200$ 1,762,026$ 6,040,021$

148

COUNTY OF MONROE, MICHIGAN Exhibit M-1

Combining Balance SheetNonmajor Special Revenue FundsDecember 31, 2012

SpecialCentral Prosecutor Investigation

Friend of Dispatch Marriage Drug Drugthe Court Authority Counseling Forfeiture Enforcement

AssetsCash and cash equivalents 162,826$ 11,804$ 2,838$ 156$ 21,084$ Investments - - - - - Taxes receivable, current - - - - - Accounts receivable - 41 - - - Due from other governments 231,864 79,741 - - - Due from other funds - 300,000 - - - Inventory - - - - -

Total assets 394,690$ 391,586$ 2,838$ 156$ 21,084$

LiabilitiesAccounts payable 11,190$ 9,078$ -$ -$ 851$ Accrued wages and fringes 80,832 81,569 - - - Due to other funds - - - - - Advances from other governments - - - - - Advances from other funds - - - - -

Total liabilities 92,022 90,647 - - 851

Deferred inflow of resourcesTaxes levied for a subsequent period - - - - -

Fund balancesRestricted 302,668 35,239 2,838 156 20,233 Committed - 265,700 - - - Unassigned (deficit) - - - - -

Total fund balances (deficit) 302,668 300,939 2,838 156 20,233

resources and fund balance 394,690$ 391,586$ 2,838$ 156$ 21,084$

continued…

Total liabilities, deferred inflow of

149

COUNTY OF MONROE, MICHIGAN Exhibit M-1(continued)


Federally MANTIS Forfeited JobForfeited Drug Property Training and WorkforceProperty Forfeiture Non-Drug Placement Investment

AssetsCash and cash equivalents 44,373$ 118,961$ 12,827$ 1,443$ 1,156$ Investments - 591,239 - - - Taxes receivable, current - - - - - Accounts receivable - - - - - Due from other governments - - - 102,217 109,942 Due from other funds - - - - - Inventory - - - - -

Total assets 44,373$ 710,200$ 12,827$ 103,660$ 111,098$

LiabilitiesAccounts payable 1,345$ 10,337$ 5,876$ 5,073$ 3,213$ Accrued wages and fringes - - - 6,770 41,977 Due to other funds - - - 74,000 61,000 Advances from other governments - - - - - Advances from other funds - - - - -

Total liabilities 1,345 10,337 5,876 85,843 106,190

Deferred inflow of resourcesTaxes levied for a subsequent period - - - - -

Fund balancesRestricted 43,028 699,863 6,951 17,817 4,908 Committed - - - - - Unassigned (deficit) - - - - -

Total fund balances (deficit) 43,028 699,863 6,951 17,817 4,908

resources and fund balance 44,373$ 710,200$ 12,827$ 103,660$ 111,098$

continued…


150

COUNTY OF MONROE, MICHIGAN Exhibit M-1(concluded)


Social Probate Other Services Court Historical Special

Sheriff Fairview Youth Commission Revenue Training Infirmary Center Museum Funds Total

AssetsCash and cash equivalents 38,150$ 1,963$ 5,596$ 7,749$ 677,052$ 1,107,978$ Investments - - - - - 591,239 Taxes receivable, current - 1,137,185 - 568,592 284,296 1,990,073 Accounts receivable - - - - 99 140 Due from other governments - 40,306 132,686 - 26,596 723,352 Due from other funds - 1,000,000 1,150,000 - 177,000 2,627,000 Inventory - - - 30,642 - 30,642

Total assets 38,150$ 2,179,454$ 1,288,282$ 606,983$ 1,165,043$ 7,070,424$

LiabilitiesAccounts payable -$ 79,435$ 85,176$ 5,680$ 6,574$ 223,828$ Accrued wages and fringes - 34,976 123,837 5,321 1,007 376,289 Due to other funds - - - 75,797 - 210,797 Advances from other governments - - - - 40,000 40,000 Advances from other funds - - - - 50,000 50,000

Total liabilities - 114,411 209,013 86,798 97,581 900,914

Deferred inflow of resourcesTaxes levied for a subsequent period - 1,137,185 - 599,234 284,296 2,020,715

Fund balancesRestricted 38,150 927,858 - - 782,165 2,881,874 Committed - - 1,079,269 - 1,001 1,345,970 Unassigned (deficit) - - - (79,049) - (79,049)

Total fund balances (deficit) 38,150 927,858 1,079,269 (79,049) 783,166 4,148,795

resources and fund balance 38,150$ 2,179,454$ 1,288,282$ 606,983$ 1,165,043$ 7,070,424$

concluded


151


Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended December 31, 2012

SpecialCentral Prosecutor Investigation

Friend of Dispatch Marriage Drug Drugthe Court Authority Counseling Forfeiture Enforcement

RevenuesTaxes -$ -$ -$ -$ -$ Licenses and permits - - 11,655 - - Intergovernmental revenue 1,698,633 346,534 - - - Charges for services 203,069 780,415 - - - Fines and forfeits - - - 2,432 - Interest and rents - - - - 67 Other revenue - 58 - - 15,396

Total revenues 1,901,702 1,127,007 11,655 2,432 15,463


General government 2,455,057 - 8,990 - - Public safety - 2,084,051 - 6,623 48,226 Health and welfare - - - - - Recreation and culture - - - - -

Capital outlay - - - - -

Total expenditures 2,455,057 2,084,051 8,990 6,623 48,226

Revenues over (under) expenditures (553,355) (957,044) 2,665 (4,191) (32,763)

Other financing sources (uses)Transfers in 682,147 1,060,189 - - - Transfers (out) - - - - -

Total other financing sources (uses) 682,147 1,060,189 - - -

Net changes in fund balances 128,792 103,145 2,665 (4,191) (32,763)

Fund balances (deficit), beginning of year 173,876 197,794 173 4,347 52,996

Fund balances (deficit), end of year 302,668$ 300,939$ 2,838$ 156$ 20,233$

continued…

152


(continued)Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended December 31, 2012

Federally MANTIS Forfeited JobForfeited Drug Property Training and WorkforceProperty Forfeiture Non-Drug Placement Investment

RevenuesTaxes -$ -$ -$ -$ -$ Licenses and permits - - - - - Intergovernmental revenue - - - 875,914 867,018 Charges for services - - - - - Fines and forfeits 62,250 50,239 - - - Interest and rents - 1,378 26 - - Other revenue - 11,748 13,746 447 232

Total revenues 62,250 63,365 13,772 876,361 867,250


General government - - - - - Public safety 92,850 106,147 21,468 - - Health and welfare - - - 876,362 867,250 Recreation and culture - - - - -

Capital outlay 33,749 - - - -

Total expenditures 126,599 106,147 21,468 876,362 867,250

Revenues over (under) expenditures (64,349) (42,782) (7,696) (1) -

Other financing sources (uses)Transfers in - - - - - Transfers (out) - - - - -

Total other financing sources (uses) - - - - -

Net changes in fund balances (64,349) (42,782) (7,696) (1) -

Fund balances (deficit), beginning of year 107,377 742,645 14,647 17,818 4,908

Fund balances (deficit), end of year 43,028$ 699,863$ 6,951$ 17,817$ 4,908$

continued…

153


(concluded)Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended December 31, 2012

Social Probate OtherServices Court Historical Special

Sheriff Fairview Youth Commission RevenueTraining Infirmary Center Museum Funds Total

RevenuesTaxes -$ 1,121,209$ -$ 334,892$ 268,040$ 1,724,141$ Licenses and permits - - - - - 11,655 Intergovernmental revenue 13,186 - 2,006,597 - 22,179 5,830,061 Charges for services - - 88,821 5,018 32,161 1,109,484 Fines and forfeits - - - - 6,500 121,421 Interest and rents - - - 3 8 1,482 Other revenue - 352,092 67,093 1,243 356,480 818,535

Total revenues 13,186 1,473,301 2,162,511 341,156 685,368 9,616,779


General government - - - - 64,659 2,528,706 Public safety 21,732 - 3,531,438 - 90,770 6,003,305 Health and welfare - 1,012,583 - - 267,896 3,024,091 Recreation and culture - - - 203,971 4,022 207,993

Capital outlay - 109,067 33,227 - 4,000 180,043

Total expenditures 21,732 1,121,650 3,564,665 203,971 431,347 11,944,138

Revenues over (under) expenditures (8,546) 351,651 (1,402,154) 137,185 254,021 (2,327,359)

Other financing sources (uses)Transfers in - - 1,694,994 - 10,893 3,448,223 Transfers (out) - (9,892) - - - (9,892)

Total other financing sources (uses) - (9,892) 1,694,994 - 10,893 3,438,331

Net changes in fund balances (8,546) 341,759 292,840 137,185 264,914 1,110,972

Fund balances (deficit), beginning of year 46,696 586,099 786,429 (216,234) 518,252 3,037,823

Fund balances (deficit), end of year 38,150$ 927,858$ 1,079,269$ (79,049)$ 783,166$ 4,148,795$

concluded

154


Schedule of Revenues, Expenditures, and Changes in Fund BalancesBudget and ActualNonmajor Special Revenue FundsFor the Year Ended December 31, 2012

ActualOriginal Final Over (Under)Budget Budget Actual Final Budget

RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues 1,615,208 1,615,208 1,698,633 83,425 Contributions from local units - - - - Charges for services 191,500 191,500 203,069 11,569 Fines and forfeits - - - - Interest and rents - - - - Other revenues - - - -

Total revenues 1,806,708 1,806,708 1,901,702 94,994


General governmentSalaries and wages 1,248,699 1,248,699 1,242,471 (6,228) Employee benefits 910,008 910,008 894,210 (15,798) Services and supplies 330,148 330,148 318,376 (11,772)

Capital outlay - - - -


Revenues over (under) expenditures (682,147) (682,147) (553,355) 128,792

Other financing sources (uses)Transfers in 682,147 682,147 682,147 - Transfers (out) - - - -

Total other financing sources (uses) 682,147 682,147 682,147 -

Net changes in fund balances - - 128,792 128,792



Friend of the Court

155




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues 334,000 334,000 346,534 12,534 Contributions from local units - - - - Charges for services 764,625 764,625 780,415 15,790 Fines and forfeits - - - - Interest and rents - - - - Other revenues 500 500 58 (442)

Total revenues 1,099,125 1,099,125 1,127,007 27,882


Public safetySalaries and wages 1,100,679 1,100,679 1,058,094 (42,585) Employee benefits 705,584 705,584 657,456 (48,128) Services and supplies 403,051 403,051 368,501 (34,550)




Other financing sources (uses)Transfers in 1,060,189 1,060,189 1,060,189 - Transfers (out) - - - -

Total other financing sources (uses) 1,060,189 1,060,189 1,060,189 -




Central Dispatch Authority

156




RevenuesTaxes -$ -$ -$ -$ Licenses and permits 15,000 8,990 11,655 2,665 Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - - - Fines and forfeits - - - - Interest and rents - - - - Other revenues - - - -

Total revenues 15,000 8,990 11,655 2,665


General governmentSalaries and wages - - - - Employee benefits - - - - Services and supplies 68,075 8,990 8,990 -


Total expenditures 68,075 8,990 8,990 -

Revenues over (under) expenditures (53,075) - 2,665 2,665

Other financing sources (uses)Transfers in - - - - Transfers (out) - - - -

Total other financing sources (uses) - - - -

Net changes in fund balances (53,075) - 2,665 2,665

Fund balances, beginning of year 173 173 173 -

Fund balances (deficit), end of year (52,902)$ 173$ 2,838$ 2,665$

Marriage Counseling

157




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - - - Fines and forfeits 10,000 10,000 2,432 (7,568) Interest and rents - - - - Other revenues - - - -

Total revenues 10,000 10,000 2,432 (7,568)


Public safetySalaries and wages - - - - Employee benefits - - - - Services and supplies 10,000 10,000 6,623 (3,377)


Total expenditures 10,000 10,000 6,623 (3,377)

Revenues over (under) expenditures - - (4,191) (4,191)



Net changes in fund balances - - (4,191) (4,191)


Fund balances, end of year 4,347$ 4,347$ 156$ (4,191)$

Prosecutor Drug Forfeiture

158




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - - - Fines and forfeits - - - - Interest and rents 500 500 67 (433) Other revenues 50,000 50,000 15,396 (34,604)

Total revenues 50,500 50,500 15,463 (35,037)






Other financing sources (uses)Transfers in - - - - Transfers (out) (61) (61) - 61

Total other financing sources (uses) (61) (61) - 61

Net changes in fund balances (25,171) (52,995) (32,763) 20,232


Fund balances, end of year 27,825$ 1$ 20,233$ 20,232$

Special Investigation Drug Enforcement

159




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - - - Fines and forfeits 36,713 36,713 62,250 25,537 Interest and rents - - - - Other revenues - - - -

Total revenues 36,713 36,713 62,250 25,537



Capital outlay - 34,079 33,749 -





Net changes in fund balances (20,000) (107,377) (64,349) 43,028


Fund balances, end of year 87,377$ -$ 43,028$ 43,028$

Federally Forfeited Property

160




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - - - Fines and forfeits 241,300 241,300 50,239 (191,061) Interest and rents 3,000 3,000 1,378 (1,622) Other revenues 8,900 8,900 11,748 2,848

Total revenues 253,200 253,200 63,365 (189,835)





Revenues over (under) expenditures (28,958) (28,958) (42,782) (13,824)



Net changes in fund balances (28,958) (28,958) (42,782) (13,824)


Fund balances, end of year 713,687$ 713,687$ 699,863$ (13,824)$

MANTIS Drug Forfeiture

161




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - - - Fines and forfeits - - - - Interest and rents 5 20 26 6 Other revenues - 13,746 13,746 -

Total revenues 5 13,766 13,772 6





Revenues over (under) expenditures (995) (14,648) (7,696) 6,952



Net changes in fund balances (995) (14,648) (7,696) 6,952


Fund balances, end of year 13,652$ (1)$ 6,951$ 6,952$

Forfeited Property - Non-Drug

162




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues - 1,018,402 875,914 (142,488) Contributions from local units - - - - Charges for services - - - - Fines and forfeits - - - - Interest and rents - - - - Other revenues - - 447 447

Total revenues - 1,018,402 876,361 (142,041)


Health and welfareSalaries and wages - 419,804 384,609 (35,195) Employee benefits - 319,740 275,792 (43,948) Services and supplies - 278,858 215,961 (62,897)


Total expenditures - 1,018,402 876,362 (142,040)

Revenues over (under) expenditures - - (1) (1)



Net changes in fund balances - - (1) (1)


Fund balances, end of year 17,818$ 17,818$ 17,817$ (1)$

Job Training and Placement

163




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues - 1,136,503 867,018 (269,485) Contributions from local units - - - - Charges for services - - - - Fines and forfeits - - - - Interest and rents - - - - Other revenues - - 232 232

Total revenues - 1,136,503 867,250 (269,253)


Health and welfareSalaries and wages - 448,359 365,503 (82,856) Employee benefits - 338,966 276,617 (62,349) Services and supplies - 349,178 225,130 (124,048)


Total expenditures - 1,136,503 867,250 (269,253)

Revenues over (under) expenditures - - - -



Net changes in fund balances - - -


Fund balances, end of year 4,908$ 4,908$ 4,908$ -$

Workforce Investment

164




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues 22,000 22,000 13,186 (8,814) Contributions from local units - - - - Charges for services - - - - Fines and forfeits - - - - Interest and rents - - - - Other revenues - - - -

Total revenues 22,000 22,000 13,186 (8,814)


Public safetySalaries and wages - - - - Employee benefits - - - - Services and supplies 22,000 22,000 21,732 (268)


Total expenditures 22,000 22,000 21,732 (268)

Revenues over (under) expenditures - - (8,546) (8,546)



Net changes in fund balances - - (8,546) (8,546)


Fund balances, end of year 46,696$ 46,696$ 38,150$ (8,546)$

Sheriff Training

165




RevenuesTaxes 1,116,235$ 1,116,235$ 1,121,209$ 4,974$ Licenses and permits - - - - Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - - - Fines and forfeits - - - - Interest and rents - - - - Other revenues 330,000 330,000 352,092 22,092

Total revenues 1,446,235 1,446,235 1,473,301 27,066


Health and welfareSalaries and wages 459,474 465,015 464,875 (140) Employee benefits 229,817 231,053 223,801 (7,252) Services and supplies 290,468 333,559 323,907 (9,652)

Capital outlay 150,000 135,650 109,067 (26,583)


Revenues over (under) expenditures 316,476 280,958 351,651 70,693

Other financing sources (uses)Transfers in - - - - Transfers (out) (9,892) (9,892) (9,892) -

Total other financing sources (uses) (9,892) (9,892) (9,892) -

Net changes in fund balances 306,584 271,066 341,759 70,693



Social Services Fairview Infirmary

166




RevenuesTaxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental revenues 1,835,035 1,840,022 2,006,597 166,575 Contributions from local units - - - - Charges for services 125,000 125,000 88,821 (36,179) Fines and forfeits - - - - Interest and rents - - - - Other revenues 59,443 69,418 67,093 (2,325)

Total revenues 2,019,478 2,034,440 2,162,511 128,071


Public safetySalaries and wages 1,543,048 1,543,048 1,485,389 (57,659) Employee benefits 1,041,427 1,026,427 900,315 (126,112) Services and supplies 1,304,789 1,306,512 1,145,734 (160,778)

Capital outlay - 33,227 33,227 -


Revenues over (under) expenditures (1,869,786) (1,874,774) (1,402,154) 472,620

Other financing sources (uses)Transfers in 1,694,994 1,694,994 1,694,994 - Transfers (out) - - - -

Total other financing sources (uses) 1,694,994 1,694,994 1,694,994 -



Fund balances, end of year 611,637$ 606,649$ 1,079,269$ 472,620$

Probate Court Youth Center

167




RevenuesTaxes -$ -$ 334,892$ 334,892$ Licenses and permits - - - - Intergovernmental revenues - - - - Contributions from local units - - - - Charges for services - - 5,018 5,018 Delinquent personal property taxes - - - - Fines and forfeits - - - - Interest and rents - - 3 3 Other revenues - - 1,243 1,243

Total revenues - - 341,156 341,156


Recreation and cultureSalaries and wages 43,859 75,537 75,360 (177) Employee benefits 29,388 38,217 37,774 (443) Services and supplies 30,168 74,986 90,837 15,851


Total expenditures 103,415 188,740 203,971 15,231

Revenues over (under) expenditures (103,415) (188,740) 137,185 325,925

Other financing sources (uses)Transfers in - 2,709 - (2,709) Transfers (out) - - - -

Total other financing sources (uses) - 2,709 - (2,709)


Fund balances (deficit), beginning of year (216,234) (216,234) (216,234) -

Fund balances (deficit), end of year (319,649)$ (402,265)$ (79,049)$ 323,216$

Historical Commission Museum

168

COUNTY OF MONROE, MICHIGAN Exhibit M-3(concluded)



RevenuesTaxes 281,558$ 281,558$ 268,040$ (13,518)$ Intergovernmental revenues 29,908 29,908 22,179 (7,729) Charges for services 50,000 50,000 32,161 (17,839) Fines and forfeits 20,000 20,000 6,500 (13,500) Interest and rents - - 8 8 Other revenues 919,529 919,529 356,480 (563,049)

Total revenues 1,300,995 1,300,995 685,368 (615,627)


General governmentSalaries and wages 25,000 25,000 22,675 (2,325) Employee benefits 1,997 1,997 1,811 (186) Services and supplies 115,431 115,431 40,173 (75,258)

Public safetySalaries and wages 45,750 45,750 39,251 (6,499) Employee benefits 25,849 25,849 23,263 (2,586) Services and supplies 38,871 38,871 28,256 (10,615)

Health and welfareSalaries and wages 15,705 15,705 15,710 5 Employee benefits 5,850 5,850 5,853 3 Services and supplies 889,517 899,517 246,333 (653,184)

Recreation and cultureSalaries and wages 3,250 3,250 4,022 772 Services and supplies 1,658 1,658 - (1,658)

Other 203,480 203,480 - (203,480) Capital outlay - 6,000 4,000 (2,000)

Total expenditures 1,372,358 1,388,358 431,347 (957,011)

Revenues over (under) expenditures (71,363) (87,363) 254,021 341,384

Other financing sources Transfers in 10,893 10,893 10,893 -




Other Special Revenue Funds

169


170


Nonmajor Enterprise Funds

Imaging Services

Engineering Fund

Inmate Commissary Fund

Property Tax Foreclosure Fund

Revolving Loan Fund This fund is used to report activity related to the issuance and repayment of Housing Rehabilitation Loansmade to County residents that are eligible to participate in the Community Development Block GrantHousing Rehabilitation Loan program.

Equipment Rental Fund

Accounts for the reimbursement to the County by Drain districts for the use of county equipment anddrain maintenance and repair.

Accounts for the reimbursement of the printing department costs by user departments, governmententities and agencies.

Accounts for the reimbursement to the County by Drain Districts for the services of engineers, who areemployed by the County.

Used to account for the concession activity for inmates in the county jails.

This fund is used to account for the forfeit, foreclosure, and sale of property for delinquent propertytaxes.

171


172


173


Combining Statement of Net PositionNonmajor Enterprise FundsDecember 31, 2012

Equipment ImagingRental Services Engineering

AssetsCurrent assets:

Cash and cash equivalents 247,796$ 45,236$ -$ Investments - - - Accounts receivable 39,405 - - Due from other governments - 257 - Due from component units 1,654 - - Loans receivable due within one year - - -

Total current assets 288,855 45,493 -

Noncurrent assets:Loans receivable - - -

Total assets 288,855 45,493 -


Accounts payable 17,454 1,759 - Accrued wages and fringes 2,441 2,281 -

Total liabilities 19,895 4,040 -

Net positionUnrestricted 268,960$ 41,453$ -$

174

Exhibit N-1

Inmate Property tax RevolvingCommissary Foreclosure Loan Total

36,290$ 543,151$ 10,755$ 883,228$ - 1,002,062 - 1,002,062 - 40 - 39,445 - - - 257 - - - 1,654 - - 48,750 48,750

36,290 1,545,253 59,505 1,975,396

- - 1,921,002 1,921,002

36,290 1,545,253 1,980,507 3,896,398

1,307 11,603 - 32,123 3,791 2,668 - 11,181

5,098 14,271 - 43,304

31,192$ 1,530,982$ 1,980,507$ 3,853,094$

175


Combining Statement of Revenues, Expenses and Changes in Fund Net PositionNonmajor Enterprise FundsFor the Year Ended December 31, 2012


Operating revenuesCharges for services 137,379$ 78,362$ -$ Interest on loan repayments - - - Other operating revenue 156,882 - -

Total operating revenues 294,261 78,362 -

Operating expenseCost of services 224,606 98,627 2,075 Depreciation 1,353 - -

Total operating expense 225,959 98,627 2,075

Operating income (loss) 68,302 (20,265) (2,075)

Nonoperating revenueInterest and rentals - - - Intergovernmental revenue - - - Donations - - -

Total nonoperating revenue - - -

Income (loss) before transfers 68,302 (20,265) (2,075)

Transfers in - 650 -

Change in net position 68,302 (19,615) (2,075)

Net position, beginning of year 200,658 61,068 2,075

Net position, end of year 268,960$ 41,453$ -$

176

Exhibit N-2

Inmate Property tax Revolving Commissary Foreclosure Loan Total

92,696$ 589,417$ -$ 897,854$ - - 3 3 - - - 156,882

92,696 589,417 3 1,054,739

164,910 299,867 41,343 831,428 - - - 1,353

164,910 299,867 41,343 832,781

(72,214) 289,550 (41,340) 221,958

- 2,286 - 2,286 - - 2,069 2,069 - - 1,000 1,000

- 2,286 3,069 5,355

(72,214) 291,836 (38,271) 227,313

- - - 650

(72,214) 291,836 (38,271) 227,963

103,406 1,239,146 2,018,778 3,625,131

31,192$ 1,530,982$ 1,980,507$ 3,853,094$

177


Combining Statement of Cash FlowsNonmajor Enterprise FundsFor the Year Ended December 31, 2012


Cash flows from operating activitiesCash received from customers 471,993$ 142,107$ 8,334$ Collections of housing loan principal - - - Collections of housing loan interest - - - Cash payments to suppliers for

goods and services (166,369) (28,977) (8,675) Cash payments for employee services (57,929) (68,694) -

Net cash provided (used) by operating activities 247,695 44,436 (341)

Cash flows from noncapitalfinancing activities

Intergovernmental revenue - - - Donations - - - Transfers in - 650 -

Net cash provided (used) by noncapital financing activities - 650 -

Cash flows from investing activitiesPurchase of investments - - - Interest received - - -

Net cash provided by investing activities - - -

Net increase (decrease) in cash and cash equivalents 247,695 45,086 (341)

Cash and cash equivalents, beginning of year 101 150 341

Cash and cash equivalents, end of year 247,796$ 45,236$ -$

Cash flows from operating activitiesOperating income (loss) 68,302$ (20,265)$ (2,075)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation expense 1,353 - - Bad dept expense - - - Change in:

Accounts receivable (39,405) 855 8,334 Due from other governments - - - Due from other funds 217,137 62,890 - Loans receivable - - - Accounts payable (77) 652 - Accrued wages and fringes 385 304 - Due to other funds - - (6,600)

Net cash provided (used) by operating activities 247,695$ 44,436$ (341)$

continued...

178

Exhibit N-3

Inmate Property Tax Revolving Commissary Foreclosure Loan Total

200,245$ 607,195$ -$ 1,429,874$ - - 16,028 16,028 - - 3 3

(68,753) (242,672) (41,343) (556,789) (95,303) (80,577) - (302,503)

36,189 283,946 (25,312) 586,613

- - 2,069 2,069 - - 1,000 1,000 - - - 650

- - 3,069 3,719

- (440) - (440) - 2,286 - 2,286

- 1,846 - 1,846

36,189 285,792 (22,243) 592,178

101 257,359 32,998 291,050

36,290$ 543,151$ 10,755$ 883,228$

(72,214)$ 289,550$ (41,340)$ 221,958$

- - - 1,353 - - 843 843

- 17,778 - (12,438) - - 133,000 133,000

107,549 - - 387,576 - - 15,185 15,185

933 (25,832) (133,000) (157,324) (79) 2,520 - 3,130

- (70) - (6,670)

36,189$ 283,946$ (25,312)$ 586,613$

concluded

179


180


Internal Service Funds

Telephone Fund

Banked Sick Pay Fund

Dental Insurance Fund

Unemployment Compensation Fund

Health Insurance Fund

Workers’ Compensation Fund

Long-Term Disability Fund

Liability Insurance Fund

Tax Collection Insurance Fund

Established to accumulate and disburse monies related to health insurance claims.

Established to accumulate and disburse monies related to dental insurance claims.

Established to accumulate and disburse monies related to unemployment compensation claims.

Established to accumulate and disburse monies related to health insurance claims.

Established to accumulate and disburse monies related to insurance for local entities for tax collection requirements.

Established to accumulate and disburse monies related to unemployment compensation claims.

Office Equipment Pool Fund

Used to record the operations of an office equipment pool.

Accounts for the reimbursement of telephone costs by user departments.

Established to record the liability and related costs associated with banked sick pay accumulated prior to July 1, 1986.

Established to accumulate and disburse monies related to dental insurance claims.

181


182


183


Combining Statement of Net PositionInternal Service FundsDecember 31, 2012

OfficeEquipment Banked Dental

Pool Telephone Sick Pay InsuranceAssets

Current assets:Cash and cash equivalents 260,237$ 131,330$ 18,366$ 180,847$ Investments - - - - Accounts receivable - 698 - 5,010 Due from other funds - 504 - -

Total current assets 260,237 132,532 18,366 185,857

Noncurrent assets:Restricted assets - cash and cash equivalents - - - - Capital assets being depreciated, net 77,024 - - -

Total noncurrent assets 77,024 - - -

Total assets 337,261 132,532 18,366 185,857


Accounts payable - - - 28,004 Compensated absences payable - - 18,366 - Claims payable - - - 6,140

Total current liabilities - - 18,366 34,144

Noncurrent liabilities - Advances from other funds 24,348 - - - Claims payable - - - -

Total noncurrent liabilities 24,348 - - -

Total liabilities 24,348 - 18,366 34,144

Net positionNet investment in capital assets 77,024 - - - Unrestricted 235,889 132,532 - 151,713

Total net position 312,913$ 132,532$ -$ 151,713$

184

Exhibit O-1

TaxUnemployment Health Worker's Long-Term Liability CollectionCompensation Insurance Compensation Disability Insurance Insurance Total

113,449$ 3,437$ 125,390$ 67,739$ 252,907$ 193$ 1,153,895$ - 3,509,098 1,002,008 - - - 4,511,106 - 171,083 5,577 - - - 182,368 - 1,115,000 - - 4,320 - 1,119,824

113,449 4,798,618 1,132,975 67,739 257,227 193 6,967,193

- - - - 1,495,331 - 1,495,331 - - - - - - 77,024 - - - - 1,495,331 - 1,572,355

113,449 4,798,618 1,132,975 67,739 1,752,558 193 8,539,548

- 2,363 4,868 19,820 - - 55,055 - - - - - - 18,366

28,496 418,829 137,153 10,858 586,511 - 1,187,987 28,496 421,192 142,021 30,678 586,511 - 1,261,408

- - - - - - 24,348 - - 34,288 - 146,628 - 180,916 - - 34,288 - 146,628 - 205,264

28,496 421,192 176,309 30,678 733,139 - 1,466,672

- - - - - - 77,024 84,953 4,377,426 956,666 37,061 1,019,419 193 6,995,852

84,953$ 4,377,426$ 956,666$ 37,061$ 1,019,419$ 193$ 7,072,876$

185


Combining Statement of Revenues, Expenses and Changes in Fund Net PositionInternal Service FundsFor the Year Ended December 31, 2012


Pool Telephone Sick Pay InsuranceOperating revenues

Charges for services -$ 71,043$ -$ -$ Employer contributions - - - 207,272 Employee contributions - - - - Other revenue 37,019 - - 60,145

Total operating revenues 37,019 71,043 - 267,417

Operating expenseAdministrative costs - 157,511 - 43,664 Benefit payments - - - 347,801 Liability insurance - - - - Depreciation 57,025 - - -

Total operating expense 57,025 157,511 - 391,465

Operating income (loss) (20,006) (86,468) - (124,048)

Nonoperating revenueInterest earned on investments - - - -

Change in net position (20,006) (86,468) - (124,048)

Net position beginning of year 332,919 219,000 - 275,761

Net position, end of year 312,913$ 132,532$ -$ 151,713$

186

Exhibit O-2


-$ -$ -$ -$ -$ -$ 71,043$ 60,972 4,371,283 123,829 56,638 618,461 - 5,438,455

- 634,048 - - - - 634,048 - 59,512 5,577 - - 31,591 193,844

60,972 5,064,843 129,406 56,638 618,461 31,591 6,337,390

- - 14,778 1,590 32,126 - 249,669 151,478 5,205,786 61,078 230,135 - - 5,996,278

- - - - 447,645 31,398 479,043 - - - - - - 57,025

151,478 5,205,786 75,856 231,725 479,771 31,398 6,782,015

(90,506) (140,943) 53,550 (175,087) 138,690 193 (444,625)

- 9,477 2,008 - - - 11,485

(90,506) (131,466) 55,558 (175,087) 138,690 193 (433,140)

175,459 4,508,892 901,108 212,148 880,729 - 7,506,016

84,953$ 4,377,426$ 956,666$ 37,061$ 1,019,419$ 193$ 7,072,876$

187


Combining Statement of Cash FlowsInternal Service FundsFor the Year Ended December 31, 2012


Pool Telephone Sick Pay InsuranceCash flows from operating activities

Cash received from customers 37,019$ 288,803$ 33,666$ 546,780$ Cash payments to suppliers for goods and services - (157,573) (15,400) - Cash payments for employee benefits - - - (395,634) Repayment of loan to other fund 267,229 - - -

Net cash provided (used) by operating activities 304,248 131,230 18,266 151,146

Cash flows from noncapital financing activitiesRepayment of long-term advances (22,730) - - -

Cash flows from capital and related financing activitiesPurchase of capital assets (21,382) - - -

Cash flows from investing activitiesProceeds from maturity of investments - - - - Interest received - - - -

Net cash provided by investing activities - - - -

Change in cash and cash equivalents 260,136 131,230 18,266 151,146

Cash and cash equivalents, beginning of year 101 100 100 29,701

Cash and cash equivalents, end of year 260,237$ 131,330$ 18,366$ 180,847$

Cash flows from operating activitiesOperating income (loss) (20,006)$ (86,468)$ -$ (124,048)$ Adjustments to reconcile operating income (loss)

to net cash provided (used) by operating activities:Depreciation expense 57,025 - - - Change in:

Accounts receivable - (35) - - Due from other funds 267,229 217,795 33,666 279,363 Accounts payable - (62) - 417 Compensated absences payable - - (15,400) - Other accrued liabilities - IBNR - - - (4,586)

Net cash provided (used) by operating activities 304,248$ 131,230$ 18,266$ 151,146$

188

Exhibit O-3


255,828$ 4,462,164$ 327,602$ 278,206$ 907,058$ 31,591$ 7,168,717$ - - - - 10,783 (31,398) (193,588)

(142,480) (5,463,329) (244,809) (210,567) - - (6,456,819) - - - - - - 267,229

113,348 (1,001,165) 82,793 67,639 917,841 193 785,539

- - - - - - (22,730)

- - - - - - (21,382)

- 745,024 488 - - - 745,512 - 9,477 2,008 - - - 11,485

- 754,501 2,496 - - - 756,997

113,348 (246,664) 85,289 67,639 917,841 193 1,498,424

101 250,101 40,101 100 830,397 - 1,150,802

113,449$ 3,437$ 125,390$ 67,739$ 1,748,238$ 193$ 2,649,226$

(90,506)$ (140,943)$ 53,550$ (175,087)$ 138,690$ 193$ (444,625)$

- - - - - - 57,025

- (602,679) (1,204) - - - (603,918) 194,856 - 199,400 221,568 288,597 - 1,702,474

- (156) (34,616) 18,677 - - (15,740) - 275 - - - - (15,125)

8,998 (257,662) (134,337) 2,481 490,554 - 105,448

113,348$ (1,001,165)$ 82,793$ 67,639$ 917,841$ 193$ 785,539$

189


190


Fiduciary Funds

Retiree Health Insurance Trust Fund

General Agency Fund

Current Tax Collection Agency Fund

Imprest Payroll Agency Fund

Penal Fines Agency Fund

Escheats Probate Court Agency Fund

MANTIS Safe and Non-adjudicated

Clearing Account Agency Fund

Used to account for monies received by the District and Circuit Courts for penal fines that aresubsequently disbursed to public libraries.

Used to account for monies that have not been claimed and are subsequently disbursed to the State ofMichigan.

Used to account for cash seized from defendants upon arrest and bonds posted in accordance with thelaws of the State of Michigan, until settlement of a case.

Used as a clearing account for the County’s disbursements.

Employees’ Retirement System Trust Fund

Used to account for the financial operations of the Monroe County Employees’ Retirement System. Thesystem is administered by a nine-member board of trustees, while the County acts as the custodian of thesystem.

Used to account for the operations of this fund for current retiree hospitalization benefits and theirsubsequent disbursement.

Used to account for monies deposited with the County Treasurer that are to be released at a later date.

Used to record the collection of current property taxes and their subsequent disbursement to variousmunicipalities, school districts and other governmental units.

Used to account for the County’s payroll and related withholdings.

191


192

COUNTY OF MONROE, MICHIGAN Exhibit P-1

Combining Statement of Fiduciary Net PositionPension and Other Employee Benefit Trust FundsDecember 31, 2012

Employees' RetireeRetirement Health

System Insurance TotalAssets

Cash and cash equivalents -$ 884,304$ 884,304$ Investments at fair value:

U.S. treasuries 20,418,854 1,790,889 22,209,743 U.S. agencies 10,077,247 1,551,494 11,628,741 Foreign government bonds 16,012,552 - 16,012,552 Corporate bonds 31,614,501 4,504,935 36,119,436 Municipal bonds 548,237 - 548,237 Foreign corporate bonds - 85,500 85,500 Bond mutual fund 2,014,519 5,251,567 7,266,086 Domestic equities 38,690,589 11,120,584 49,811,173 International equities 8,954,123 4,884,059 13,838,182 International preferred stock - 71,982 71,982 American depository receipts 33,165,943 - 33,165,943 Domestic real estate investment trusts 2,276,216 - 2,276,216 Collateralized mortgage obligations 2,502,772 - 2,502,772 Money market accounts 8,681,146 1,989,897 10,671,043

Accounts receivable 694,964 62,483 757,447 Foreign currency forward contracts receivable 30,267 - 30,267 Interest receivable 843,361 - 843,361

Total assets 176,525,291 32,197,694 208,722,985

LiabilitiesAccounts payable 885,137 21,959 907,096 Obligation for impaired investment

of securities lending collateral 347,334 - 347,334

Total liabilities 1,232,471 21,959 1,254,430

Net position held in trust for pensionbenefits and other purposes 175,292,820$ 32,175,735$ 207,468,555$

193


Combining Statement of Changes in Plan Net PositionPension and Other Employee Benefit Trust FundsFor the Year Ended December 31, 2012

Employees' RetireeRetirement Health

System Insurance TotalAdditions

Investment income:From investing activities

Net appreciation in fair value of investments 10,628,017$ 1,856,163$ 12,484,180$ Interest and dividends 4,948,838 882,711 5,831,549

Total investment gain 15,576,855 2,738,874 18,315,729 Less: investment management fees (937,038) (227,420) (1,164,458)

Net gain from investing activities 14,639,817 2,511,454 17,151,271

From securities lending activitiesGross earnings 20,470 - 20,470 Borrower rebates 14,009 - 14,009 Security lending fees (10,337) - (10,337)

Net gain from securities lending activities 24,142 - 24,142

Total net investment income 14,663,959 2,511,454 17,175,413

Contributions:Employer 7,184,103 6,400,652 13,584,755 Employee 350,474 410,664 761,138 Retiree and other - 481,397 481,397 Time purchase 419,446 - 419,446

Total contributions 7,954,023 7,292,713 15,246,736

Total additions 22,617,982 9,804,167 32,422,149

DeductionsBenefit payments 13,007,231 4,829,258 17,836,489 Refunds of contributions 407,201 90,045 497,246 Administrative expenses/premiums paid 225,907 31,527 257,434

Total deductions 13,640,339 4,950,830 18,591,169

Net additions to net position held in trust 8,977,643 4,853,337 13,830,980

Net position held in trust for pensionbenefits and other purposes

Beginning of year 166,315,177 27,322,398 193,637,575

End of year 175,292,820$ 32,175,735$ 207,468,555$

194


195


Combining Statement of Assets and LiabilitiesAll Agency FundsDecember 31, 2012

CurrentGeneral Tax Imprest PenalAgency Collection Payroll Fines

AssetsCash and cash equivalents 836,048$ 1,036,690$ 80,036$ 4,467$ Investments 751,335 - - -

Total assets 1,587,383$ 1,036,690$ 80,036$ 4,467$

LiabilitiesDue to other governments 839,440$ -$ 80,036$ 4,467$ Undistributed taxes - current levy - 1,036,690 - - Undistributed taxes - other 69,985 - - - Other undistributed receipts 677,958 - - -

Total liabilities 1,587,383$ 1,036,690$ 80,036$ 4,467$

196

Exhibit P-3

MANTISEscheats Safe andProbate Non- ClearingCourt adjudicated Account Total

2,233$ 46,543$ -$ 2,006,017$ - - - 751,335

2,233$ 46,543$ -$ 2,757,352$

-$ -$ -$ 923,943$ - - - 1,036,690 - - - 69,985

2,233 46,543 - 726,734

2,233$ 46,543$ -$ 2,757,352$

197


Combining Statement of Changes in Assets and LiabilitiesAll Agency FundsFor the Year Ended December 31, 2012

Beginning EndingBalance Additions Deductions Balance

General AgencyAssets

Cash and cash equivalents 223,551$ 5,066,928$ 4,454,431$ 836,048$ Investments 750,921 751,451 751,037 751,335

Total assets 974,472$ 5,818,379$ 5,205,468$ 1,587,383$

LiabilitiesDue to other governments 249,964$ 4,287,188$ 3,697,712$ 839,440$ Undistributed taxes - other 78,902 182,391 191,308 69,985 Other undistributed receipts 645,606 6,668,800 6,636,448 677,958

Total liabilities 974,472$ 11,138,379$ 10,525,468$ 1,587,383$

Current Tax Collection

AssetsCash and cash equivalents 7,061,432$ 75,206,390$ 81,231,132$ 1,036,690$ Investments 5,029 5,041 10,070 -

Total assets 7,066,461$ 75,211,431$ 81,241,202$ 1,036,690$

LiabilitiesUndistributed taxes - current levy 7,066,461$ 144,590,981$ 150,620,752$ 1,036,690$

continued…

198




Imprest Payroll

AssetsCash and cash equivalents 90,542$ 27,844,343$ 27,854,849$ 80,036$

LiabilitiesAccounts payable -$ 3,256,871$ 3,256,871$ -$ Due to other governments 89,986 11,486,287 11,496,237 80,036 Other undistributed receipts 556 19,653,283 19,653,839 -

Total liabilities 90,542$ 34,396,441$ 34,406,947$ 80,036$

Penal Fines

AssetsCash and cash equivalents 3,359$ 898,050$ 896,942$ 4,467$

LiabilitiesDue to other governments 3,359$ 938,511$ 937,403$ 4,467$

Escheats Probate Court


LiabilitiesOther undistributed receipts 17,715$ 19,942$ 35,424$ 2,233$

continued…

199




MANTIS-Safe and Non-adjudicated


LiabilitiesOther undistributed receipts 45,294$ 3,148$ 1,899$ 46,543$

Clearing Account

AssetsCash and cash equivalents -$ 191,005,081$ 191,005,081$ -$

LiabilitiesOther undistributed receipts -$ 96,971,075$ 96,971,075$ -$

Total Agency Funds

AssetsCash and cash equivalents 7,441,893$ 300,043,882$ 305,479,758$ 2,006,017$ Investments 755,950 751,451 751,037 751,335

Total assets 8,197,843$ 300,795,333$ 306,230,795$ 2,757,352$

LiabilitiesDue to other governments 343,309$ 16,711,986$ 16,131,352$ 923,943$ Undistributed taxes - current levy 7,066,461 144,590,981 150,620,752 1,036,690 Undistributed taxes - other 78,902 182,391 191,308 69,985 Other undistributed receipts 709,171 123,316,248 123,298,685 726,734

Total liabilities 8,197,843$ 284,801,606$ 290,242,097$ 2,757,352$

concluded

200

DRAIN COMPONENT UNIT

201


202


203


Statement of Net Position / Governmental Funds Balance SheetDrain Commission Component UnitDecember 31, 2012

DebtService Capital Projects

Special SpecialDrain Drain Drain

AssetsCash and cash equivalents 384,046$ 1,453,180$ 638$ Investments - 1,302,776 - Special assessments receivable 555,518 1,466,171 - Unlevied special assessments 6,969,058 1,774,939 - Due from other funds - 697,021 - Due from primary government - - 1,070,000 Capital assets, net - - -

Total assets 7,908,622$ 6,694,087$ 1,070,638$

LiabilitiesAccounts payable -$ 12,242$ 336$ Due to other funds - 489,185 697,021 Due to primary government - - - Interest payable - - - Advance from primary government - - - Long-term liabilities:

Due within one year - - - Due beyond one year - - -

Total liabilities - 501,427 697,357

Deferred inflow of resourcesUnavailable special assessment revenue 7,528,297 3,380,795 -

Fund balances Restricted for debt service 380,325 - - Committed for capital projects - 2,811,865 373,281

Total fund balances 380,325 2,811,865 373,281

Total liabilities, deferred inflow of resources and fund balances 7,908,622$ 6,694,087$ 1,070,638$

Net positionNet investment in capital assetsRestricted for debt serviceRestricted for construction

Total net position

204

Exhibit Q-1

Capital Projects

StatementDrain of Net

Revolving Total Adjustments Position

166,420$ 2,004,284$ -$ 2,004,284$ - 1,302,776 - 1,302,776 - 2,021,689 - 2,021,689 - 8,743,997 - 8,743,997

489,185 1,186,206 (1,186,206) - - 1,070,000 - 1,070,000 - - 21,597,120 21,597,120

655,605$ 16,328,952$ 20,410,914 36,739,866

53,951$ 66,529$ - 66,529

- 1,186,206 (1,186,206) - 1,654 1,654 - 1,654

- - 73,332 73,332 600,000 600,000 - 600,000

- - 1,208,100 1,208,100 - - 7,241,869 7,241,869

655,605 1,854,389 7,337,095 9,191,484

- 10,909,092 (10,909,092) -

- 380,325 (380,325) - - 3,185,146 (3,185,146) -

- 3,565,471 (3,565,471) -

655,605$ 16,328,952$

13,147,151 13,147,151 7,835,290 7,835,290 6,565,941 6,565,941

27,548,382$ 27,548,382$

205


Statement of Activities / Governmental Funds Revenues, Expenditures, and Changes in Fund BalancesDrain Commission Component UnitFor the Year Ended December 31, 2012

DebtService Capital Projects

Special SpecialDrain Drain Drain

RevenuesSpecial assessments 106,567$ 2,171,013$ 115,796$ Charges for services - 99,286 - Interest revenue - 2,776 -

Total revenues 106,567 2,273,075 115,796

Expenditures/expensesDebt service:

Principal 950,997 - - Interest and fiscal charges 347,703 - -

Public works - 941,341 2,433,946

Total expenditures/expenses 1,298,700 941,341 2,433,946

Revenues over (under) expenditures/expenses (1,192,133) 1,331,734 (2,318,150)

Other financing sources (uses)Transfers in 1,652,501 - - Transfers (out) - (1,384,529) (267,972) Proceeds from drain notes - - 440,383

Total other financing sources (uses) 1,652,501 (1,384,529) 172,411

Change in fund balances / net position 460,368 (52,795) (2,145,739)

Fund balances (deficit) / net position, beginning of year (80,043) 2,864,660 2,519,020

Fund balances / net position, end of year 380,325$ 2,811,865$ 373,281$

206

Exhibit Q-2

Capital Projects

StatementDrain of

Revolving Total Adjustments Activities

-$ 2,393,376$ (1,813,957)$ 579,419$ - 99,286 - 99,286 - 2,776 - 2,776

- 2,495,438 (1,813,957) 681,481

- 950,997 (950,997) - - 347,703 5,555 353,258 - 3,375,287 496,236 3,871,523

- 4,673,987 (449,206) 4,224,781

- (2,178,549) (1,364,751) (3,543,300)

- 1,652,501 (1,652,501) - - (1,652,501) 1,652,501 - - 440,383 (440,383) -

- 440,383 (440,383) -

- (1,738,166) (1,805,134) (3,543,300)

- 5,303,637 25,788,045 31,091,682

-$ 3,565,471$ 23,982,911$ 27,548,382$

207


208

CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS

209


210

COUNTY OF MONROE, MICHIGAN Exhibit R-1

Comparative Schedule of Capital Assets Usedin the Operation of Governmental Funds by SourceDecember 31, 2012 and 2011

2012 2011Capital assets used in governmental funds :

Land and improvements 947,708$ 947,708$ Buildings and improvements 63,798,722 63,683,519 Machinery and equipment 16,763,036 16,500,914 Vehicular equipment 2,639,869 2,652,067

Total capital assets used in governmental funds 84,149,335$ 83,784,208$

Capital assets used in governmental funds by source:General fund 11,209,211$ 10,923,869$ Special revenue funds 7,377,998 7,380,339 Capital projects funds 65,562,126 65,480,000

Total capital assets used in governmental funds 84,149,335$ 83,784,208$

This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assetsreported in internal service funds are excluded from the above amounts. Generally, the capital assets of internalservice funds are included as governmental activities in the statement of net assets.

211


Schedule of Capital Assets Used in the Operation of Governmental FundsBy Function and ActivityDecember 31, 2012

Land and Buildings and Machinery Vehicular ConstructionImprovements Improvements and Equipment Equipment in Progress Total

General governmentDistrict Court -$ 243,422$ 37,957$ 21,639$ -$ 303,018$ Prosecutor - 27,439 - - - 27,439 Clerk/Register of Deeds - - 140,568 - 140,568 General Services Administration 233,323 17,970,591 4,864,691 91,875 - 23,160,480

Total general government 233,323 18,241,452 5,043,216 113,514 - 23,631,505

Public safetyLaw Enforcement and

Corrections - Sheriff - 19,375,053 2,682,967 2,141,280 - 24,199,300 Youth Center - 1,451,001 42,865 - - 1,493,866 Emergency Management Division - 566,220 771,271 - - 1,337,491 Central Dispatch - 3,763,196 8,008,385 - - 11,771,581 Animal Control Division - 489,707 - 98,409 - 588,116

Total public safety - 25,645,177 11,505,488 2,239,689 - 39,390,354

Public works - Drain Commissioner - - - 22,802 - 22,802

Health and welfarePublic Health Department - 2,418,903 95,387 123,942 - 2,638,232 Community Mental Health - 6,901,026 - - - 6,901,026 Fairview Infirmary - 1,491,384 - - - 1,491,384

Total health and welfare - 10,811,313 95,387 123,942 - 11,030,642

Community and economic development - - 38,764 - - 38,764

Culture and recreationHistorical Commission - 1,822,095 - - - 1,822,095 Parks and Recreation 714,385 2,637,687 80,181 139,922 - 3,572,175 Library System - 4,640,998 - - - 4,640,998

Total culture and recreation 714,385 9,100,780 80,181 139,922 - 10,035,268

Total capital assets used ingovernmental funds 947,708$ 63,798,722$ 16,763,036$ 2,639,869$ -$ 84,149,335$

212


Schedule of Changes in Capital Assets Used in the Operation of Governmental FundsBy Function and ActivityFor the Year Ended December 31, 2012

Beginning EndingBalance Additions Deletions Transfers Balance

General governmentDistrict Court 303,018$ -$ -$ -$ 303,018$ Prosecutor 27,439 - - - 27,439 Clerk/Register of Deeds 140,568 - - - 140,568 General Services Administration 22,851,995 721,001 412,516 - 23,160,480

Total general government 23,323,020 721,001 412,516 - 23,631,505

Public safetyLaw Enforcement and Corrections - Sheriff 23,887,877 393,964 82,542 - 24,199,299 Youth Center 1,493,866 - - - 1,493,866 Emergency Management Division 1,337,491 - - - 1,337,491 Central Dispatch 11,817,843 - 46,263 - 11,771,580 Animal Control Division 588,117 - - - 588,117

Total public safety 39,125,194 393,964 128,805 - 39,390,353

Public works - Drain Commissioner 22,802 - - 22,802

Health and welfarePublic Health Department 2,631,516 6,717 - - 2,638,233 Community Mental Health 6,901,026 - - - 6,901,026 Fairview Infirmary 1,491,385 - - - 1,491,385

Total health and welfare 11,023,927 6,717 - - 11,030,644

Planning and development 38,764 - - - 38,764

Culture and recreationHistorical Commission 2,037,329 - 215,234 - 1,822,095 Parks and Recreation 3,572,174 - - - 3,572,174 Library System 4,640,998 - - - 4,640,998

- Total culture and recreation 10,250,501 - 215,234 - 10,035,267

Total capital assets used in governmental funds 83,784,208$ 1,121,682$ 756,555$ -$ 84,149,335$

213


214


Statistical Section Table of Contents

Page

Financial Trends (schedules 1-4)

These schedules contain trend information to help the readerunderstand and evaluate how the County’s financial condition,performance and well-being have changed over time. 218

Revenue Capacity (schedules 5-8)

These schedules contain information to help the reader assess theCounty’s ability to generate its most significant local revenuesource, the property tax. 228

Debt Capacity (schedules 9-11)

These schedules present information to help the reader assess theaffordability of the County’s current levels of outstanding debtand its ability to issue additional debt in the future. 234

Demographic andEconomic Information (schedules 12 - 14)

These schedules present various demographic and economicindicators to help the reader understand the environment withinwhich the County operates and how they affect the County’sfinancial activities. 238

Operating Information (schedules 15-16)

These schedules contain information about the County’soperations and resources to help the reader understand how theinformation in the County’s financial report relates to theservices the County provides and the activities it performs. 242

This part of the County of Monroe’s comprehensive annual financial report presents detailed informationas a context for understanding what the information in the financial statements, note disclosures, andrequired supplementary information says about the government’s overall financial health.

215


216


217


Net Position by ComponentLast Ten Years(accrual basis of accounting)

2003 2004 2005Governmental activities

Net investment in capital assets 25,272,494$ 19,321,982$ 20,584,332$ Restricted 2,413,275 5,742,120 5,157,304 Unrestricted 10,862,697 27,108,655 32,714,604

Total governmental activities net position 38,548,466$ 52,172,757$ 58,456,240$

Business-type activitiesNet investment in capital assets 74,045$ 48,833$ 31,393$ Unrestricted 6,723,144 6,689,342 8,431,906

Total business-type activities net position 6,797,189$ 6,738,175$ 8,463,299$

Primary governmentNet investment in capital assets 25,346,539$ 19,370,815$ 20,615,725$ Restricted 2,413,275 5,742,120 5,157,304 Unrestricted 17,585,841 33,797,997 41,146,510

Total primary government net position 45,345,655$ 58,910,932$ 66,919,539$

Source: Monroe County Finance Department

218

Schedule 1UNAUDITED

2006 2007 2008 2009 2010 2011 2012

24,232,587$ 22,606,508$ 26,710,429$ 26,684,877$ 24,950,605$ 23,066,135$ 20,148,661$ 8,095,270 8,415,893 4,435,832 3,899,754 3,337,389 2,986,630 3,680,492

38,137,043 35,639,984 28,093,169 19,936,845 17,263,774 17,421,608 13,046,075 70,464,900$ 66,662,385$ 59,239,430$ 50,521,476$ 45,551,768$ 43,474,373$ 36,875,228$

24,148$ 21,331$ 16,960$ 11,493$ 6,026$ 1,352$ -$ 8,579,254 9,317,362 10,295,862 11,969,617 14,567,408 16,973,489 19,079,818 8,603,402$ 9,338,693$ 10,312,822$ 11,981,110$ 14,573,434$ 16,974,841$ 19,079,818$

24,256,735$ 22,627,839$ 26,727,389$ 26,696,370$ 24,956,631$ 23,067,487$ 20,148,661$ 8,095,270 8,415,893 4,435,832 3,899,754 3,337,389 2,986,630 3,680,492

46,716,297 44,957,346 38,389,031 31,906,462 31,831,182 34,395,097 32,125,893 79,068,302$ 76,001,078$ 69,552,252$ 62,502,586$ 60,125,202$ 60,449,214$ 55,955,046$

219


Changes in Net PositionLast Ten Years (accrual basis of accounting)

2003 2004 2005ExpensesGovernmental activities:

General government 17,810,280$ 17,781,908$ 18,692,546$ Public safety 24,035,943 27,174,720 27,191,465 Public works 518,335 638,423 1,076,479 Health and welfare 11,515,050 11,166,659 11,104,236 Community and economic development 734,342 832,725 721,829 Recreation and culture 641,762 559,637 593,013 Other activities 829,875 1,109,005 1,098,830 Interest on long-term debt 508,342 470,727 435,690

Total governmental activities expenses 56,593,929 59,733,804 60,914,088

Business-type activities:Delinquent tax 99,116 - 102,933 Equipment rental 99,689 270,452 227,823 Printing 157,643 165,297 161,890 Engineering 99,363 98,410 99,067 Inmate commissary 49,655 37,046 38,791 Property tax foreclosure - - - Revolving loan - - 11,086

Total business-type activities expenses 505,466 571,205 641,590

Total primary government expenses 57,099,395 60,305,009 61,555,678

Program revenuesGovernmental activities:

Charges for services:General government 6,556,146 5,670,054 6,076,183 Public safety 6,202,635 2,063,039 2,198,258 Health and welfare 1,997,615 1,600,143 1,420,800 Community and economic development 31,706 31,117 13,928 Recreation and culture 7,465 4,022 2,361 Other activities - - 471,903

Operating grants and contributions 10,650,357 16,235,565 14,982,978 Capital grants and contributions 137,456 5,965,098 -

Total governmental activities program revenues 25,583,380 31,569,038 25,166,411

Business-type activities:Charges for services:

Delinquent tax - 1,083,871 1,389,228 Equipment rental 120,264 239,052 215,777 Imaging services 156,910 154,205 142,687 Engineering 84,527 106,033 105,060 Inmate commissary 55,896 52,344 59,202 Property tax foreclosure - - - Revolving loan - - 6,753

Operating grants and contributions - - -

Total business-type activities program revenues 417,597 1,635,505 1,918,707

Total primary government program revenues 26,000,977$ 33,204,543$ 27,085,118$

220

Schedule 2UNAUDITED

2006 2007 2008 2009 2010 2011 2012

18,404,915$ 21,715,114$ 21,851,465$ 22,816,240$ 20,461,519$ 19,208,346$ 20,920,339$ 28,641,779 32,729,974 34,042,675 31,237,187 30,035,874 27,941,645 30,248,077 1,346,748 680,074 1,017,553 323,637 86,797 56,288 130,288

12,096,024 14,264,277 14,278,807 14,407,143 13,322,243 12,573,802 12,056,811 679,131 837,872 747,451 886,670 531,409 614,220 514,814 626,794 663,104 842,633 777,223 717,709 628,466 521,371

- - - - - - - 337,307 557,314 573,983 523,552 402,002 417,287 412,377

62,132,698 71,447,729 73,354,567 70,971,652 65,557,553 61,440,054 64,804,077

182,571 164,815 45,840 159,642 216,624 187,954 155,273 208,652 265,936 292,074 272,148 228,714 158,906 225,959 155,215 171,745 184,104 179,844 134,874 96,246 98,627 112,874 127,202 134,106 136,311 26,275 14,233 2,075 22,500 26,721 40,931 40,716 65,156 132,853 164,910

- - 212,971 261,027 308,139 288,513 299,867 252,843 118,596 271,570 3,200 222,966 163,349 41,343

934,655 875,015 1,181,596 1,052,888 1,202,748 1,042,054 988,054

63,067,353 72,322,744 74,536,163 168,605,021 66,760,301 62,482,108 65,792,131

5,807,235 5,697,499 5,183,272 4,925,331 4,863,446 4,565,044 4,816,111 2,273,765 1,882,605 1,892,531 1,790,654 1,898,450 1,730,211 1,633,150 1,388,373 1,621,553 1,588,877 1,407,253 1,166,408 850,727 1,069,183

59,666 19,849 14,122 19,702 30,400 19,574 26,307 522,040 5,435 3,868 4,467 4,343 7,473 5,018

- - - - - - - 16,465,868 16,722,341 16,929,721 17,101,298 17,318,732 16,293,868 15,947,942

96,320 863,206 - - - - -

26,613,267 26,812,488 25,612,391 25,248,705 25,281,779 23,466,897 23,497,711

1,502,971 1,921,541 1,821,500 2,212,490 2,406,439 2,265,606 2,009,160 205,795 247,199 298,290 255,573 214,093 168,273 294,261 102,605 97,813 114,747 100,083 85,858 95,639 78,362 100,024 87,856 122,434 152,234 10,054 14,234 - 59,985 59,080 58,980 58,959 65,059 32,210 92,696

- - 430,230 518,081 570,443 545,415 589,417 376,787 175,991 277,296 29,715 - - -

- - - - 367,137 276,650 3,072

2,348,167 2,589,480 3,123,477 30,185,176 3,719,083 3,398,027 3,066,968

28,961,434$ 29,401,968$ 28,735,868$ 95,981,592$ 29,000,862$ 26,864,924$ 26,564,679$

221


Changes in Net Position (Concluded)Last Ten Years(accrual basis of accounting)

2003 2004 2005

Net (expenses) revenueGovernmental activities (31,010,549)$ (28,164,766)$ (35,747,677)$ Business-type activities (87,869) 1,064,300 1,277,117

Total primary government net (expense) revenue (31,098,418) (27,100,466) (34,470,560)

General revenuesGovernmental activities:

Property taxes 27,672,966 36,717,917 38,059,005 Unrestricted grants and contributions 2,597,140 2,592,308 3,367,087 Rents and other revenue 1,161,546 676,881 - Investment earnings 587,589 502,858 1,077,198 Transfers 1,106,902 1,130,883 1,145,000

Total governmental activities general revenues 33,126,143 41,620,847 43,648,290

Business-type activities:Unrestricted grants and contributions 966,672 - - Investment earnings 34,692 7,566 40,945 Transfers (1,106,902) (1,130,883) (1,145,000)

Total business-type activities general revenues (105,538) (1,123,317) (1,104,055)

Total primary government general revenues 33,020,605 40,497,530 42,544,235

Change in net positionGovernmental activities 2,115,594 13,456,081 7,900,613 Business-type activities (193,407) (59,017) 173,062

Total primary government 1,922,187$ 13,397,064$ 8,073,675$


222

Schedule 2Unaudited

2006 2007 2008 2009 2010 2011 2012

(35,519,431)$ (44,635,241)$ (83,816,704)$ (77,903,931)$ (71,142,441)$ (37,973,157)$ (41,306,366)$ 1,413,512 1,714,465 3,072,297 5,280,502 8,233,609 2,355,973 2,078,914

(34,105,919) (42,920,776) (80,744,407) (72,623,429) (62,908,832) (35,617,184) (39,227,452)

41,085,203 33,743,806 33,979,237 32,028,207 31,190,431 31,628,655 31,094,159 2,875,071 3,181,874 3,112,541 3,455,701 3,439,742 3,554,509 2,970,714

- - - - - - - 2,212,567 2,717,940 2,216,835 903,852 729,893 730,058 714,351 1,330,250 1,035,000 1,010,608 617,233 (53,999) (17,460) (650)

47,503,091 40,678,620 40,319,221 73,344,479 35,306,067 35,895,762 34,778,574

- - - - - - - 56,841 55,826 42,855 11,274 21,990 27,974 25,413

(1,330,250) (1,035,000) (1,010,608) (617,233) 53,999 17,460 650

(1,273,409) (979,174) (967,753) (1,980,010) 75,989 45,434 26,063

46,229,682 39,699,446 39,351,468 71,364,469 35,382,056 35,941,196 34,804,637

11,983,660 (3,956,621) (43,497,483) (4,559,452) (35,836,374) (2,077,395) (6,527,792) 140,103 735,291 2,104,544 3,300,492 8,309,598 2,401,407 2,104,977

12,123,763$ (3,221,330)$ (41,392,939)$ (1,258,960)$ (27,526,776)$ 324,012$ (4,422,815)$

223


Fund Balances - Governmental FundsLast Ten Years(modified accrual basis of accounting)

2003 2004 2005

General FundReserved 989,833$ 936,648$ 899,437$ Unreserved 8,196,377 8,686,349 8,856,487 Nonspendable - - - Restricted - - - Committed - - - Assigned - - - Unassigned - - -

Total general fund 9,186,210$ 9,622,997$ 9,755,924$

All other governmental fundsReserved 2,865,794$ 1,941,891$ 2,264,850$ Unreserved, reported in:

Special revenue funds 7,763,742 15,935,628 21,079,048 Debt service funds - 1,020,864 497,918 Capital projects funds 2,048,154 1,991,284 2,819,189

Restricted - - - Committed - - - Assigned - - - Unassigned (deficit) - - -

Total all other governmental funds 12,677,690$ 20,889,667$ 26,661,005$

NOTE: GASB 54 was implemented in 2011.


224

Schedule 3UNAUDITED

2006 2007 2008 2009 2010 2011 2012

822,978$ 1,292,570$ 2,120,887$ 1,331,980$ 909,687$ -$ -$ 9,067,005 8,069,017 3,827,719 2,636,804 5,050,268 - -

- - - - - 843,679 805,559 - - - - - 3,033,655 3,062,391 - - - - - 826,946 915,010 - - - - - 500,748 43,505 - - - - - 5,772,828 6,298,270

9,889,983$ 9,361,587$ 5,948,606$ 3,968,784$ 5,959,955$ 10,977,856$ 11,124,735$

1,672,162$ 1,873,039$ 2,310,544$ 1,878,987$ 1,732,718$ -$ -$

26,541,713 24,215,062 20,107,007 16,259,029 14,150,849 - - 1,333,816 805,640 443,755 638,172 440,858 - - 4,738,096 6,133,298 1,957,795 1,006,177 878,788 - -

- - - - - 9,330,999 7,780,136 - - - - - 1,741,608 3,103,890 - - - - - 607,898 - - - - - - - (79,049)

34,285,787$ 33,027,039$ 24,819,101$ 19,782,365$ 17,203,213$ 11,680,505$ 10,804,977$

225


Changes in Fund Balances - Governmental FundsLast Ten Years(modified accrual basis of accounting)

2003 2004 2005Revenues

Taxes 27,672,966$ 36,717,917$ 38,059,005$ Licenses and permits 536,555 584,690 558,533 Intergovernmental and local units 14,841,696 22,200,448 14,982,978 Contributions from local units - - - Charges for services 10,000,720 7,796,951 7,897,298 Fines and forfeits 942,842 986,734 894,199 Interest and rents 1,211,256 1,150,719 1,858,056 Other revenue 2,367,781 2,592,523 3,367,087

Total revenues 57,573,816 72,029,982 67,617,156

ExpendituresGeneral government 16,892,573 17,246,547 18,046,823 Public safety 23,001,541 26,527,113 25,296,981 Public works 513,775 633,863 1,071,919 Health and welfare 11,369,139 11,128,600 11,934,932 Community and economic development 734,342 843,392 579,605 Recreation and culture 519,366 434,201 465,329 Other activities 1,100,877 1,109,005 1,102,073 Capital outlay 1,393,393 8,070,997 2,104,501 Principal 1,464,140 1,985,061 2,098,195 Interest 527,147 473,321 458,832 Issuance costs - - -

Total expenditures 57,516,293 68,452,100 63,159,190

Revenues over (under) expenditures 57,523 3,577,882 4,457,966

Other financing sources (uses)Issuance of debt - 3,300,000 - Payment to escrow - - - Bond premium - - - Transfers in 11,374,553 11,723,438 14,622,693 Transfers out (9,497,831) (9,952,555) (12,837,693)

Total other financing sources (uses) 1,876,722 5,070,883 1,785,000

Net change in fund balances 1,934,245$ 8,648,765$ 6,242,966$

Debt service as a percentage of noncapital expenditures 3.7% 4.2% 4.4%


226

Schedule 4UNAUDITED

2006 2007 2008 2009 2010 2011 2012

42,484,704$ 32,391,435$ 33,979,237$ 32,028,207$ 31,190,431$ 31,628,655$ 31,094,159$ 571,509 555,672 602,094 542,734 502,223 481,782 510,840

15,162,687 18,937,918 14,301,296 14,732,118 14,956,554 13,984,723 13,763,582 - - 2,628,425 2,369,180 2,362,178 2,309,145 2,184,360

7,775,265 7,749,614 7,206,186 6,875,057 6,709,043 5,966,246 6,384,451 1,008,840 752,416 827,265 680,895 702,372 725,001 654,478 2,810,910 2,944,410 2,195,749 946,862 771,551 722,251 702,866 2,875,071 3,181,874 3,112,541 3,455,701 3,439,742 3,554,509 2,970,714

72,688,986 66,513,339 64,852,793 61,630,754 60,634,094 59,372,312 58,265,450

18,361,741 19,995,038 21,027,326 19,811,826 16,921,691 18,064,441 18,062,687 27,856,835 30,040,845 31,960,440 29,461,951 27,482,330 26,069,682 27,044,251 1,342,188 679,944 1,017,421 323,637 86,797 56,288 130,288

12,137,928 14,205,552 14,286,187 14,282,754 13,130,648 12,373,430 11,660,309 630,891 781,623 764,359 903,024 535,291 620,938 512,263 498,294 508,331 530,369 478,471 402,250 307,892 252,108 58,943 78,012 99,651 101,312 108,303 97,112 78,381

3,275,325 10,600,257 6,491,019 2,875,277 1,315,411 1,102,469 1,121,680 2,251,341 1,005,357 1,315,273 1,009,770 690,000 750,000 790,000

361,909 478,643 582,274 528,754 415,055 417,407 382,582 - - - - 71,353 - 18,900

66,775,395 78,373,602 78,074,319 69,776,776 61,159,129 59,859,659 60,053,449

5,913,591 (11,860,263) (13,221,526) (8,146,022) (525,035) (487,347) (1,787,999)

- 8,523,119 - - 4,070,000 - 1,060,000 - - - - (4,094,483) - - - - - - 15,536 - -

19,710,130 16,031,593 17,828,370 16,446,363 11,124,662 9,701,167 9,440,114 (17,864,880) (14,481,593) (16,227,762) (15,316,899) (11,178,661) (9,718,627) (9,440,764)

1,845,250 10,073,119 1,600,608 1,129,464 (62,946) (17,460) 1,059,350

7,758,841$ (1,787,144)$ (11,620,918)$ (7,016,558)$ (587,981)$ (504,807)$ (728,649)$

4.3% 2.2% 2.7% 2.4% 1.9% 2.0% 2.1%

227


Assessed and Estimated True Cash Value of Taxable PropertyLast Ten Years

Residential Agriculture Commercial Industrial DevelopmentalTax Year Property Property Property Property Property

2003 3,591,071,882$ 342,155,453$ 638,975,155$ 1,113,076,146$ 16,428,886$

2004 3,868,050,728 373,425,880 695,883,009 1,081,071,159 24,187,555

2005 4,171,394,039 437,947,734 731,115,107 1,042,462,771 45,988,525

2006 4,480,795,902 468,961,778 784,389,681 1,018,368,809 48,597,403

2007 4,695,250,326 476,656,813 827,866,223 1,017,641,719 48,516,833

2008 4,482,849,346 476,286,771 856,859,108 1,054,430,386 47,840,711

2009 3,998,867,886 480,294,556 856,587,613 1,042,302,338 48,091,288

2010 3,474,192,511 477,120,794 857,318,148 1,062,863,630 43,267,812

2011 3,321,573,084 460,314,979 807,657,466 1,039,416,773 32,540,512

2012 3,254,305,029 446,476,781 772,824,646 1,051,177,594 21,252,625

Note: Residential, commercial and industrial values are calculated without tax-exempt values.

Source: County Equalization Department figures, exclusive of Industrial and Commercial Facility Tax and prior to any Board of Review actions.

228

Schedule 5UNAUDITED

PersonalProperty

464,976,294$ 6,166,683,816$ 0.0539 12,412,251,677$

475,914,307 6,518,532,638 0.0540 13,110,642,494

489,137,589 6,918,045,765 0.0541 13,926,131,767

496,567,248 7,297,680,821 0.0530 14,691,790,857

562,822,494 7,628,754,408 0.0530 15,382,833,650

500,748,371 7,419,014,693 0.0530 14,930,540,071

492,363,570 6,918,507,251 0.0530 13,927,941,406

516,103,835 6,430,866,730 0.0555 12,957,283,147

548,797,150 6,210,299,964 0.0561 12,479,526,742

544,181,666 6,090,218,341 0.0561 12,152,892,850

Total Assessed

ValueTotal Direct

Tax RateEstimated True

Cash Value

229

COUNTY OF MONROE, MICHIGAN Schedule 6UNAUDITED

Direct and Overlapping Property Tax RatesLast Ten Years(rate per $1,000 of taxable value)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012County direct rates

Operation 4.79 4.81 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 Jail bond 0.10 0.11 0.11 - - - - - - - Veterans - - - - - - - 0.05 0.05 0.05 Tourism - - - - - - - - 0.06 0.06 Faiview - - - - - - - 0.20 0.20 0.20 Senior citizen 0.48 0.49 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

Total direct rate 5.39 5.40 5.41 5.30 5.30 5.30 5.30 5.55 5.61 5.61

Overlapping ratesCities:

Luna Pier 10.07 11.11 11.80 11.80 10.82 10.33 10.33 10.33 10.33 10.33 Milan 18.83 18.82 18.71 18.69 17.13 17.13 17.13 17.54 15.83 16.18 Monroe 15.34 15.46 15.80 15.88 15.87 16.17 16.23 16.76 16.76 17.15 Petersburg 21.57 20.34 20.71 20.12 20.25 19.07 18.96 20.42 21.26 20.88

Townships (average) 2.91 2.91 2.72 2.98 2.94 2.94 2.99 2.98 3.00 3.13

School districts (average) 25.99 26.97 26.80 27.01 26.92 32.35 32.90 33.12 33.15 33.20

Intermediate schooldistricts (average) 4.69 4.92 4.89 4.89 4.87 4.87 4.87 4.87 4.87 4.87

Community college 2.18 2.19 2.18 2.18 2.18 2.18 2.18 2.18 2.18 2.18

Library 0.81 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

(A) - Rates range from: Low 0.74 0.73 0.71 0.70 0.70 0.70 0.70 0.70 0.70 0.70 High 9.33 9.39 7.66 9.68 9.51 9.53 9.66 9.64 9.80 10.81

(B) - Rates range from:Low 22.75 23.75 23.47 23.75 23.48 28.95 28.95 30.00 30.00 30.00 High 31.01 32.01 32.01 32.01 32.01 37.34 37.99 37.99 37.99 37.99

(C) - Rates range from:Low 3.06 4.04 3.46 3.46 3.46 3.46 3.46 3.46 3.46 3.46 High 7.49 7.41 7.34 7.34 7.28 7.28 7.28 7.28 7.28 7.28

Source: Monroe County Equalization Office

230


Principal Property Tax PayersCurrent Year and Ten Years Ago

Percent Percentof Total of Total

Taxable Taxable Taxable TaxableValue Rank Value Value Rank Value

Detroit Edison 912,111,040$ 1 16.28% 1,090,824,916$ 1 22.14%Consumers Power Co. 79,251,246 2 1.41% 69,020,482 3 1.40%International Transmission Co. 40,056,468 3 0.72% - - Goodwill Co. (Meijer) 23,867,825 4 0.43% 27,694,124 4 0.56%Gerdau MacSteel (formerly North Star) 23,805,070 5 0.43% 26,511,850 5 0.54%Frenchtown Square 18,734,927 6 0.33% 16,289,942 8 0.33%Inergy Automotive (formerly Visteon & ACH) 18,590,437 7 0.33% - - Monroe Bank and Trust 18,523,967 8 0.33% - - Michigan Gas 16,390,878 9 0.29% - - Spartan Steel Coating 15,899,800 10 0.28% - - Cabela'a - - 18,647,023 7 0.38%Holnam, Inc. - - 22,105,260 6 0.45%Ford Motor Company - - 102,721,824 2 2.09%Guardian Industries - - 14,852,906 9 0.30%Tenneco - - 9,165,500 10 0.19%

1,167,231,658$ 20.84% 1,397,833,827$ 28.37%

Source: Monroe County Equalization Department.

2012 2002

Taxpayer

231


Property Tax Levies and CollectionsLast Ten Years

Purchased

Funded Adjusted % of by Tax % ofYear Taxes Levied Amount Levy Revolving Fund Amount Levy

2003 27,147,744$ 25,754,590$ 94.87% 1,283,880$ 27,038,470$ 99.60%

2004 28,460,227 26,906,643 94.54% 1,432,657 28,339,300 99.58%

2005 29,799,298 28,389,285 95.27% 1,337,720 29,727,005 99.76%

2006 30,772,667 29,341,646 95.35% 1,350,458 30,692,104 99.74%

2007 32,236,926 30,809,258 95.57% 1,361,644 32,170,902 99.80%

2008 32,806,301 31,293,165 95.39% 1,453,348 32,746,513 99.82%

2009 32,027,518 30,480,645 95.17% 1,459,513 31,940,158 99.73%

2010 30,246,996 28,911,080 95.58% 1,260,987 30,172,067 99.75%

2011 29,669,763 28,515,307 96.11% 1,096,933 29,612,240 99.81%

2012 29,038,500 28,011,706 96.46% 973,673 28,985,379 99.82%

Source: Monroe County Treasurer's Office

Collected within theFiscal Year of the Levy Total Collections to Date

232


233


Ratios of Outstanding Debt by TypePrimary GovernmentLast Ten Years

Net General Bonded Debt Outstanding

Less: % ofAmounts Actual

General Restricted % of TaxableObligation to Repaying Net General Personal Value of Per

Year Bonds Principal Bonded Debt Income Property Capita

2003 10,230,000$ (1,827,271)$ 8,402,729$ 0.18% 0.07% 55.69$

2004 8,575,000 (1,826,310) 6,748,690 0.14% 0.05% 44.27

2005 7,095,000 (1,254,791) 5,840,209 0.12% 0.04% 37.94

2006 5,485,000 (2,103,999) 3,381,001 0.07% 0.02% 21.81

2007 13,745,000 (805,640) 12,939,360 0.25% 0.08% 84.24

2008 13,120,000 (443,755) 12,676,245 0.24% 0.08% 82.88

2009 12,465,000 (638,172) 11,826,828 0.24% 0.08% 76.99

2010 11,830,000 (440,858) 11,389,142 0.22% 0.09% 74.92

2011 11,080,000 (207,818) 10,872,182 0.20% 0.09% 71.71

2012 11,244,378 (129,021) 11,115,357 0.21% 0.09% 73.73


(1) Includes total general obligations bonds (not netted) along with installment loans and general obligation tax notes.

234

Schedule 9UNAUDITED

Other Governmental Business-typeActivities Debt Activities

% of(1) Actual

General Total % of TaxableInstallment Obligation Primary Personal Value of Per

Loans Tax Notes Government Income Property Capita

-$ -$ 10,230,000$ 0.22% 0.08% 67.80$

2,969,939 - 11,544,939 0.25% 0.09% 75.73

2,351,743 - 9,446,743 0.20% 0.07% 61.37

- - 5,485,000 0.11% 0.04% 35.38

- - 13,745,000 0.27% 0.09% 89.48

354,770 - 13,474,770 0.26% 0.09% 88.10

- 6,500,000 18,965,000 0.39% 0.14% 123.46

- 8,300,000 20,130,000 0.40% 0.16% 132.42

- 5,515,000 16,595,000 0.31% 0.13% 109.45

- 3,205,000 14,449,378 0.27% 0.12% 95.84

235


Computation of Net Direct and Overlapping DebtAs of December 31, 2012

Self-SupportingGross or Paid Net

Amount by Benefited AmountOutstanding Entity Outstanding

Direct debtGeneral obligation tax notes 3,205,000$ 3,205,000$ -$ Building authority bonds 11,244,378 - 11,244,378 Water bonds 27,198,738 27,198,738 - Sewer bonds 39,280,807 39,280,807 - MTF notes/bonds (a) 4,105,000 4,105,000 -

Net direct debt 85,033,923$ 73,789,545$ 11,244,378

(a) No County credit pledged on $2,450,000.

Overlapping debtSchool Districts 106,090,173 Cities 41,569,562 Townships 53,002,692 Villages 23,195,967

Net overlapping debt 223,858,394

Net direct and overlapping debt 235,102,772$

Source: Municipal Advisory Council of Michigan

236


Legal Debt MarginLast Ten Years

Legal Debt Margin Calculation for 2012Assessed value (as of December 31, 2012) 6,040,218,641$

Debt limit (10% of assessed value) 604,021,864$ Debt applicable to limit -

Long-term debt including component units 93,994,506

Legal debt margin 510,027,358$

TotalNet Debt

Total ApplicableNet Debt to Limit as a

Debt Applicable Legal Percentage ofLimit to Limit Debt Margin Debt Limit

587,666,449$ 55,488,400$ 532,178,049$ 10.43%

616,668,382 63,319,200 553,349,182 11.44%

651,826,617 66,506,856 585,319,761 11.36%

691,804,577 64,015,584 627,788,993 10.20%

729,758,333 70,452,608 659,305,725 10.69%

741,940,038 76,616,245 665,323,793 11.52%

691,850,725 80,633,128 611,217,597 13.19%

643,086,673 90,619,142 552,467,531 16.40%

621,029,996 89,811,292 531,218,704 16.91%

604,021,864 93,994,506 510,027,358 18.43%


2012

2007

2008

2009

2010

2011

2006

Fiscal year

2003

2004

2005

237


Demographic and Economic StatisticsLast Ten Years

PersonalIncome Per Capita

(thousands Personal UnemploymentYear Population of dollars) Income Rate

2003 150,888 4,554,626$ 30,185$ 6.10%

2004 152,451 4,592,010 30,121 6.20%

2005 153,935 4,747,388 30,840 6.10%

2006 155,035 4,986,121 32,161 6.50%

2007 153,608 4,961,001 32,460 6.70%

2008 152,949 5,115,211 32,436 8.90%

2009 153,612 4,881,043 31,775 14.10%

2010 152,021 5,082,187 32,108 12.40%

2011 151,623 (b) 5,402,726 35,633 9.70%

2012 150,763 (b) 5,402,726 (a) 35,836 8.00%

(a) Updated data not available at the time of publication.(b) Projected.

Sources: U.S. Census Bureau, U.S. Department of CommerceMichigan Department of Career Development Employment Service Agency

Michigan Economic Development Corporation

238


Principal EmployersCurrent Year and Ten Years Ago

% of % ofTotal County Total County

Employees Rank Employment Employees Rank Employment

Detroit Edison Corp. 1,500 1 3.79% 1,530 2 3.36%Mercy Memorial Hospital 1,300 2 3.29% 1,246 3 2.73%Meijer Inc. 1,025 3 2.59% 625 8 1.37%Monroe Public Schools 1,000 4 2.53% 1,000 4 2.19%Bedford Public Schools 725 5 1.83% 725 6 1.59%Monroe County 665 6 1.68% 750 5 1.64%Cabela's 650 7 1.64% 640 7 1.40%Monroe Auto Equipment 500 8 1.26% - - Guardian Industries Corp. 500 8 1.26% 540 8 1.18%La-Z-Boy Inc 500 8 1.26% 522 9 1.14%Visteon Corporation - - 1,954 1 4.28%

8,365 21.15% 9,532 20.90%

(a) Updated data not available at the time of publication.(b) 2003 information not available at time of publicationSource: Monroe County Finance Department

2012 (a) 2002 (b)

Employer

239


Full-Time County Primary Government Employees by Function/Program Last Ten Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

General GovernmentBoard of Commissioners 11.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 9.0 9.0 Circuit Court 8.6 6.4 6.4 5.6 4.8 4.8 4.8 4.5 4.8 4.8 District Court 48.0 48.0 48.0 48.0 48.0 47.0 47.0 43.0 39.0 40.0 Probate/Family Court 28.4 29.6 28.6 29.4 29.2 27.2 28.2 24.2 25.2 25.2 Administrator/CFO 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Finance 5.0 5.0 5.0 5.0 6.0 6.0 5.0 5.0 3.0 3.0 County Clerk 23.0 19.0 19.0 19.9 19.0 19.0 18.0 16.0 16.0 15.0 Register of Deeds - 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Equalization 7.0 6.0 6.0 5.6 6.0 6.0 5.0 3.0 3.0 3.0 Human Resources 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 3.0 3.0 Prosecuting Attorney 22.0 22.0 22.0 21.0 22.0 22.0 21.0 18.6 16.1 15.6 Retirement Board 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Treasurer 7.0 7.0 6.0 6.0 6.0 6.0 6.0 6.0 4.0 4.0 County Extension 6.0 5.0 5.0 5.0 5.0 5.0 5.0 4.0 1.0 1.0 Information Services 7.5 6.5 6.5 5.5 5.5 5.5 6.5 5.5 5.0 5.0 Purchasing/Prop Maint 19.0 18.0 19.0 16.0 16.0 16.0 15.0 9.0 6.0 7.0 Drain Commissioner 6.0 8.0 8.0 7.0 6.0 5.0 6.0 5.0 5.0 5.0 Parks maintenance 6.0 3.0 3.0 3.0 3.0 3.0 2.0 1.0 1.0 1.0 Friend of the Court 39.0 36.0 37.0 36.0 36.0 33.0 32.0 25.4 21.4 20.4

Public SafetySheriff 108.0 106.0 113.0 111.0 111.0 114.0 112.0 100.7 80.0 80.0 Emergency Management 3.0 2.0 3.0 3.0 4.0 6.0 5.0 3.0 3.0 3.0 Animal Control 6.0 5.0 5.0 5.0 5.0 5.0 5.0 4.0 4.0 4.0 Jail/Corrections 97.0 98.0 89.0 88.0 88.0 89.0 87.0 82.0 74.0 75.0 Central Dispatch 25.0 24.0 24.0 24.0 24.5 27.0 23.0 22.0 22.0 22.1 Drug Court 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 - -Juvenile Justice 2.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0 1.0 1.0 Youth Center 36.0 34.7 35.0 35.7 35.7 35.7 35.7 32.7 28.0 28.5

Health and WelfareMedical Examiner 0.1 0.1 0.1 0.1 0.1 0.1 0.3 0.2 0.2 0.2 Commission on Aging 2.0 2.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 Veterans Services 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Public Health 33.8 30.3 26.6 25.4 24.4 25.0 23.6 17.5 17.8 20.9 Environmental Health 9.9 8.4 10.0 10.0 10.0 10.0 7.7 6.9 7.0 6.9 Employment Training 25.0 25.0 26.0 25.0 26.0 28.0 28.0 28.0 28.0 24.0 Fairview 10.0 8.7 9.3 8.7 8.7 8.7 8.7 6.7 7.5 7.5

Community and EconomicPlanning 6.9 6.9 6.9 6.0 6.0 6.0 6.0 4.0 2.0 2.0

Recreation and CulturalHistorical Commission 6.0 4.7 4.7 4.3 4.7 5.7 5.7 3.7 3.0 1.2

Enterprise ActivitiesPrinting 2.2 2.2 2.2 2.0 2.0 2.0 2.0 2.0 1.0 1.0 Delinquent Tax - - - - - - 1.0 - 2.0 2.0 Engineering 1.0 1.0 1.0 1.0 1.0 1.0 1.0 - - -

Total 624.3 600.3 598.3 584.2 586.6 592.6 577.1 507.4 451.0 449.3


Function/Program

240


241


Operating Indicators by Function/ProgramLast Ten Years

2003 2004 2005 2006 2007

General GovernmentDistrict Court cases 47,738 45,050 47,886 46,420 44,664 Circuit Court cases 4,944 5,115 4,943 5,129 4,856 Taxes returned delinquent 1,167,505$ 1,296,551$ 1,432,657$ 1,410,014$ 1,350,458$

Public SafetyJail capacity 363 363 363 343 343 Certified Police Officers 102 100 98 96 96 Traffic infractions 32,990 31,371 32,338 28,104 25,325

HealthPublic Health:

Vaccines administered 15,883 11,739 9,057 8,533 7,490 WIC average monthly caseload 2,709 2,713 2,691 2,691 2,766 Maternal and Infant support clients 283 298 262 259 391

Senior Services:Client contacts (unduplicated count) NA NA NA NA NA

Culture & RecreationCounty owned park acres 222 222 222 222 222

NA - information not available at time of report preparation

Function/Program

Source: Monroe County Finance Department, Monroe County Treasurer's Office, Monroe County Health Department, Monroe County Commission on Aging, Monroe County Sheriff's Office

242

Schedule 15UNAUDITED

2008 2009 2010 2011 2012

42,889 39,223 37,104 31,858 34,174 4,762 4,309 4,583 4,381 4,372

1,515,949$ 1,638,563$ 1,335,919$ 1,154,456$ 1,026,794$

343 343 343 343 343 98 97 91 69 69

22,982 20,296 18,687 14,218 15,862

9,050 27,969 9,057 7,015 6,465 2,858 3,300 3,412 3,369 3,324

376 352 - 19 396

7,706 7,656 7,780 7,696 6,595

222 222 222 222 222

243


Capital Asset Statistics by Function/ProgramLast Ten Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Public SafetyCorrections facility capacities 363 363 363 343 343 343 343 343 343 343 Sheriff patrol vehicles 61 61 63 90 91 92 91 91 84 84 Animal control vehicles 10 7 7 5 7 7 7 7 7 7 Marine safety - boats 4 4 4 4 4 5 5 5 4 4

Parks and recreationPark acreage 221 221 221 221 221 221 221 221 221 221 County parks 6 6 6 6 6 6 6 6 6 6 Service vehicles (trucks, etc) 7 7 7 6 8 7 7 7 7 7 Buildings:

Park pavilions 10 10 10 12 12 14 14 14 14 14 Historical commission 5 5 5 5 5 5 5 5 5 5

Public HealthInspection vehicles 4 5 6 6 8 8 8 8 8 8

Public WorksPrimary road miles 429 429 429 429 429 429 429 429 429 429 Local road miles 933 933 933 933 933 933 933 933 933 933 State road miles 165 165 165 165 165 165 165 165 165 165


Function/Program

244

Documents

Co M prehensive annual finan C ial repor t